    [House Report 119-620]
    [From the U.S. Government Publishing Office]

    119th Congress }                                              { Report
                            HOUSE OF REPRESENTATIVES
      2d Session   }                                              { 119-620
    _______________________________________________________________________

                 FARM, FOOD, AND NATIONAL SECURITY ACT OF 2026

                                   ----------

                                  R E P O R T

                                     of the

                            COMMITTEE ON AGRICULTURE

                                 together with

                                DISSENTING VIEWS

                            [to accompany H.R. 7567]

                                  BOOK 2 OF 2

                   [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]

     April 21, 2026.--Committed to the Committee of the Whole House on the
                  State of the Union and ordered to be printed

                 FARM, FOOD, AND NATIONAL SECURITY ACT OF 2026
                                  BOOK 2 OF 2

    119th Congress }                                              { Report
                            HOUSE OF REPRESENTATIVES
      2d Session   }                                              { 119-620
    _______________________________________________________________________

                 FARM, FOOD, AND NATIONAL SECURITY ACT OF 2026

                                   __________

                                  R E P O R T

                                     of the

                            COMMITTEE ON AGRICULTURE

                                 together with

                                DISSENTING VIEWS

                            [to accompany H.R. 7567]

                                  BOOK 2 OF 2

                    [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]

     April 21, 2026.--Committed to the Committee of the Whole House on the
                  State of the Union and ordered to be printed
                                    ______

                      U.S. GOVERNMENT PUBLISHING OFFICE

    63-525                    WASHINGTON : 2026

                      BILL EMERSON HUMANITARIAN TRUST ACT

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                  TITLE III--BILL EMERSON HUMANITARIAN TRUST

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    SEC. 302. ESTABLISHMENT OF COMMODITY TRUST.

      (a) In General.--To provide for a trust solely to meet
    emergency humanitarian food needs in developing countries, the
    Secretary of Agriculture (referred to in this title as the
    ``Secretary'') shall establish and maintain a trust of wheat,
    rice, corn, or sorghum, any combination of the commodities, or
    funds for use as described in subsection (c).
      (b) Commodities or Funds in Trust.--
              (1) In general.--The trust established under this
            section shall consist of--
                      (A) wheat in the reserve established under
                    the Food Security Wheat Reserve Act of 1980 as
                    of the date of enactment of the Federal
                    Agriculture Improvement and Reform Act of 1996;
                      (B) wheat, rice, corn, and sorghum (referred
                    to in this section as ``eligible commodities'')
                    acquired in accordance with paragraph (2) to
                    replenish eligible commodities released from
                    the trust, including wheat to replenish wheat
                    released from the reserve established under the
                    Food Security Wheat Reserve Act of 1980 but not
                    replenished as of the date of enactment of the
                    Federal Agriculture Improvement and Reform Act
                    of 1996;
                      (C) such rice, corn, and sorghum as the
                    Secretary may, at such time and in such manner
                    as the Secretary determines appropriate,
                    acquire as a result of exchanging an equivalent
                    value of wheat in the trust established under
                    this section; and
                      (D) funds made available--
                              (i) under paragraph (2)(B);
                              (ii) as a result of an exchange of
                            any commodity held in the trust for an
                            equivalent amount of funds from the
                            market, if the Secretary determines
                            that such a sale of the commodity on
                            the market will not unduly disrupt
                            domestic markets; or
                              (iii) to maximize the value of the
                            trust, in accordance with subsection
                            (d)(3).
              (2) Replenishment of trust.--
                      (A) In general.--Subject to subsection (h),
                    commodities of equivalent value to eligible
                    commodities in the trust established under this
                    section may be acquired--
                              (i) through purchases--
                                      (I) from producers; or
                                      (II) in the market, if the
                                    Secretary determines that the
                                    purchases will not unduly
                                    disrupt the market; or
                              (ii) by designation by the Secretary
                            of stocks of eligible commodities of
                            the Commodity Credit Corporation.
                      (B) Funds.--Any funds used to acquire
                    eligible commodities through purchases from
                    producers or in the market to replenish the
                    trust shall be derived--
                              (i) with respect to fiscal years 2000
                            through [2023] 2031 from funds made
                            available to carry out the Food for
                            Peace Act (7 U.S.C. 1691 et seq.) that
                            are used to repay or reimburse the
                            Commodity Credit Corporation for the
                            release of eligible commodities under
                            subsections (c)(1) and (f)(2), except
                            that, of such funds, not more than
                            $20,000,000 may be expended for this
                            purpose in each of the fiscal years
                            2000 through [2023] 2031;
                              (ii) from funds authorized for that
                            use by an appropriations Act; or
                              (iii) from funds accrued through the
                            management of the trust under
                            subsection (d).
      (c) Release of Eligible Commodities.--
              (1) Releases for emergency assistance.--
                      (A) Definition of emergency.--
                              (i) In general.--In this paragraph,
                            the term ``emergency'' means an urgent
                            situation--
                                      (I) in which there is clear
                                    evidence that an event or
                                    series of events described in
                                    clause (ii) has occurred--
                                              (aa) that causes
                                            human suffering; and
                                              (bb) for which a
                                            government concerned
                                            has not chosen, or has
                                            not the means, to
                                            remedy; or
                                      (II) created by a
                                    demonstrably abnormal event or
                                    series of events that produces
                                    dislocation in the lives of
                                    residents of a country or
                                    region of a country on an
                                    exceptional scale.
                              (ii) Event or series of events.--An
                            event or series of events referred to
                            in clause (i) includes 1 or more of--
                                      (I) a sudden calamity, such
                                    as an earthquake, flood, locust
                                    infestation, or similar
                                    unforeseen disaster;
                                      (II) a human-made emergency
                                    resulting in--
                                              (aa) a significant
                                            influx of refugees;
                                              (bb) the internal
                                            displacement of
                                            populations; or
                                              (cc) the suffering of
                                            otherwise affected
                                            populations;
                                      (III) food scarcity
                                    conditions caused by slow-onset
                                    events, such as drought, crop
                                    failure, pest infestation, and
                                    disease, that result in an
                                    erosion of the ability of
                                    communities and vulnerable
                                    populations to meet food needs;
                                    and
                                      (IV) severe food access or
                                    availability conditions
                                    resulting from sudden economic
                                    shocks, market failure, or
                                    economic collapse, that result
                                    in an erosion of the ability of
                                    communities and vulnerable
                                    populations to meet food needs.
                      (B) Releases.--
                              (i) In general.--Any funds or
                            commodities held in the trust may be
                            released to provide food, and cover any
                            associated costs, under title II of the
                            Food for Peace Act (7 U.S.C. 1721 et
                            seq.)--
                                      (I) to assist in averting an
                                    emergency, including during the
                                    period immediately preceding
                                    the emergency;
                                      (II) to respond to an
                                    emergency; or
                                      (III) for recovery and
                                    rehabilitation after an
                                    emergency.
                              (ii) Procedure.--A release under
                            clause (i) shall be carried out in the
                            same manner, and pursuant to the same
                            authority as provided in title II of
                            that Act.
                      (C) Insufficiency of other funds.--The funds
                    and commodities held in the trust shall be made
                    immediately available on a determination by
                    [the Administrator] the Secretary that funds
                    available for emergency needs under title II of
                    that Act (7 U.S.C. 1721 et seq.) for a fiscal
                    year are insufficient to meet emergency needs
                    during the fiscal year.
                      [(D) Waiver relating to minimum tonnage
                    requirements.--Nothing in this paragraph
                    requires a waiver by the Administrator of the
                    Agency for International Development under
                    section 204(a)(3) of the Food for Peace Act (7
                    U.S.C. 1724(a)(3)) as a condition for a release
                    of funds or commodities under subparagraph
                    (B).]
              (2) Processing of eligible commodities.--Eligible
            commodities that are released from the trust
            established under this section may be processed in the
            United States and shipped to a developing country when
            conditions in the recipient country require processing.
              (3) Exchange.--The Secretary may exchange an eligible
            commodity for another United States commodity of equal
            value, including powdered milk, pulses, and vegetable
            oil.
              (4) Use of normal commercial practices.--To the
            maximum extent practicable consistent with the
            fulfillment of the purposes of this section and the
            effective and efficient administration of this section,
            the Secretary shall use the usual and customary
            channels, facilities, arrangements, and practices of
            trade and commerce to carry out this subsection.
      (d) Management of Trust.--
              (1) In general.--The Secretary shall provide for the
            management of eligible commodities and funds held in
            the trust in a manner that is consistent with
            maximizing the value of the trust, as determined by the
            Secretary.
              (2) Eligible commodities.--The Secretary shall
            provide--
                      (A) for the management of eligible
                    commodities in the trust established under this
                    section as to location and quality of eligible
                    commodities needed to meet emergency
                    situations;
                      (B) for the periodic rotation or replacement
                    of stocks of eligible commodities in the trust
                    to avoid spoilage and deterioration of the
                    commodities;
                      (C) subject to the need for release of
                    commodities from the trust under subsection
                    (c)(1), for the management of the trust to
                    preserve the value of the trust through
                    acquisitions under subsection (b)(2); and
              (3) Funds.--
                      (A) Exchanges.--If any commodity held in the
                    trust is exchanged for funds under subsection
                    (b)(1)(D)(ii), the funds shall be held in the
                    trust until the date on which the funds are
                    released in the case of an emergency under
                    subsection (c).
                      (B) Investment.--The Secretary may invest
                    funds held in the trust in any short-term
                    obligation of the United States or any other
                    low-risk short-term instrument or security
                    insured by the Federal Government in which a
                    regulated insurance company may invest under
                    the laws of the District of Columbia.
      (e) Treatment of Trust Under Other Law.--Eligible commodities
    in the trust established under this section shall not be--
              (1) considered a part of the total domestic supply
            (including carryover) for the purpose of subsection (c)
            or for the purpose of administering the Food for Peace
            Act (7 U.S.C. 1691 et seq.); and
              (2) subject to any quantitative limitation on exports
            that may be imposed under section 7 of the Export
            Administration Act of 1979 (50 U.S.C. App. 2406).
      (f) Use of Commodity Credit Corporation.--
              (1) In general.--Subject to the limitations provided
            in this section, the funds, facilities, and authorities
            of the Commodity Credit Corporation shall be used by
            the Secretary in carrying out this section, except that
            any restriction applicable to the acquisition, storage,
            or disposition of eligible commodities owned or
            controlled by the Commodity Credit Corporation shall
            not apply.
              (2) Reimbursement of the trust.--
                      (A) In general.--The Commodity Credit
                    Corporation shall be reimbursed by the
                    Secretary for the release of eligible
                    commodities from funds made available to carry
                    out the Food for Peace Act (7 U.S.C. 1691 et
                    seq.) and the funds shall be available to
                    replenish the trust under subsection (b).
                      (B) Basis for reimbursement.--The
                    reimbursement shall be made on the basis of the
                    lesser of--
                              (i) the actual costs incurred by the
                            Commodity Credit Corporation with
                            respect to the eligible commodity; or
                              (ii) the export market price of the
                            eligible commodity (as determined by
                            the Secretary) as of the time the
                            eligible commodity is released from the
                            trust.
                      (C) Source of funds.--The reimbursement may
                    be made from funds appropriated for subsequent
                    fiscal years.
      (g) Finality of Determination.--Any determination by the
    Secretary under this section shall be final.
      (h) Termination of Authority.--
              (1) In general.--The authority to replenish stocks of
            eligible commodities to maintain the trust established
            under this section shall terminate on September 30,
            [2023] 2031.
              (2) Disposal of eligible commodities.--Eligible
            commodities remaining in the trust after September 30,
            [2026] 2031, shall be disposed of by release for use in
            providing for emergency humanitarian food needs in
            developing countries as provided in this section.

                                  ----------

                 FARM SECURITY AND RURAL INVESTMENT ACT OF 2002

               *       *       *       *       *       *       *

                               TITLE III--TRADE

               *       *       *       *       *       *       *

    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--
              (1) is produced in the United States; or
              (2)(A) is produced in and procured from--
                      (i) a developing country that is a recipient
                    country; or
                      (ii) a developing country in the same region
                    as a recipient country; and
              (B) at a minimum, meets each nutritional, quality,
            and labeling standard of the recipient country, as
            determined by the Secretary.
      (b) Program.--Subject to subsection (l), the Secretary 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;
                              (vi) the costs associated with
                            transporting the commodities described
                            in subsection (a)(2) from a developing
                            country described in subparagraph
                            (A)(ii) of that subsection to any
                            designated point of entry within the
                            recipient country; and
                      (vii) 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 Secretary determines that--
                              (i) payment of the costs is
                            appropriate; and
                              (ii) the recipient country is a low
                            or lower-middle 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 Secretary shall--
              (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
            Secretary 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 to the maximum extent practicable
                    that assistance--
                              (i) is provided under this section in
                            a timely manner; and
                              (ii) is available when needed
                            throughout the applicable school year;
                      (F) ensure monitoring and reporting by
                    eligible entities on the use of commodities and
                    other assistance provided under this section;
                    and
                      (G) 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 Secretary 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 Secretary 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 Secretary shall annually submit to
            the [Committee on International Relations] Committee on
            Foreign Affairs 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 Secretary 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 Food for
    Peace Act (7 U.S.C. 1733(a)) applies with respect to the
    availability of commodities under this section.
      (l) Funding.--
              (1) Use of commodity credit corporation funds.--Of
            the funds of the Commodity Credit Corporation, the
            Secretary shall use to carry out this section
            $84,000,000 for fiscal year 2009, to remain available
            until expended.
              (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 2008 through [2023] 2031.
              (3) Administrative expenses.--Funds made available to
            carry out this section may be used to pay the
            administrative expenses of the Department of
            Agriculture or any other Federal agency assisting in
            the implementation of this section.
              (4) Purchase of commodities.--Of the funds made
            available to carry out this section, [not more than 10
            percent] not less than 8 percent, but not more than 15
            percent shall be used to purchase agricultural
            commodities described in subsection (a)(2).

               *       *       *       *       *       *       *

                         TITLE IV--NUTRITION PROGRAMS

               *       *       *       *       *       *       *

                          Subtitle D--Miscellaneous

               *       *       *       *       *       *       *

    SEC. 4402. SENIORS FARMERS' MARKET NUTRITION PROGRAM.

      (a) Funding.--Of the funds of the Commodity Credit
    Corporation, the Secretary of Agriculture shall use to carry
    out and expand the seniors farmers' market nutrition program
    $20,600,000 for each of fiscal years [2008 through 2023] 2027
    through 2031.
      (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, honey, [and herbs] herbs, maple syrup, and
            tree nuts (including shelled tree nuts) 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) Exclusion of Benefits in Determining Eligibility for
    Other Programs.--The value of any benefit provided to any
    eligible seniors farmers' market nutrition program recipient
    under this section shall not be considered to be income or
    resources for any purposes under any Federal, State, or local
    law.
      (d) Prohibition on Collection of Sales Tax.--Each State shall
    ensure that no State or local tax is collected within the State
    on a purchase of food with a benefit distributed under the
    seniors farmers' market nutrition program.
      (e) Regulations.--The Secretary may promulgate such
    regulations as the Secretary considers to be necessary to carry
    out the seniors farmers' market nutrition program.
      (f) Federal Law Not Applicable.--Section 920 of the
    Electronic Fund Transfer Act shall not apply to electronic
    benefit transfer systems established under this section.

               *       *       *       *       *       *       *

                          TITLE VI--RURAL DEVELOPMENT

               *       *       *       *       *       *       *

                           Subtitle E--Miscellaneous

               *       *       *       *       *       *       *

    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] Subject to paragraph (3), each Agriculture
            Innovation Center of an eligible entity shall have a
            board of directors composed of a diverse group of
            representatives of public and private entities,
            including the [following::] following:
                      (A) Two 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, or a State
                    legislator, of the State in which the eligible
                    entity is located.
                      (C) Four entities representing commodities
                    produced in the State.
              (3) Waiver.--The Secretary may waive the requirement
            described in paragraph (2) with respect to an eligible
            entity if the Secretary determines that the eligible
            entity has a board of directors adequate for the
            purpose of carrying out this section.
      (e) Grants and Assistance.--
              (1) In general.--Subject to subsection (g), 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 210A(d)(5)(D) of the Agricultural Marketing Act of
    1946:
              (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) Authorization of Appropriations.--There are authorized to
    be appropriated to carry out this section $15,000,000 for each
    of fiscal years 2019 through [2023] 2031.

               *       *       *       *       *       *       *

    SEC. 6407. RURAL ENERGY SAVINGS PROGRAM.

      (a) Purpose.--The purpose of this section is to help rural
    families and small businesses achieve cost savings by providing
    loans to qualified consumers to implement durable cost-
    effective energy efficiency measures.
      (b) Definitions.--In this section:
              (1) Eligible entity.--The term ``eligible entity''
            means--
                      (A) any public power district, public utility
                    district, or similar entity, or any electric
                    cooperative described in section 501(c)(12) or
                    1381(a)(2) of the Internal Revenue Code of
                    1986, that borrowed and repaid, prepaid, or is
                    paying an electric loan made or guaranteed by
                    the Rural Utilities Service (or any predecessor
                    agency), if the entity continues to serve rural
                    areas (as defined in section 343(a)(13)(A) of
                    the Consolidated Farm and Rural Development Act
                    (7 U.S.C. 1991(a)(13)(A));
                      (B) any entity primarily owned or controlled
                    by 1 or more entities described in subparagraph
                    (A); [or]
                      (C) any Indian Tribe (as defined in section 4
                    of the Indian Self-Determination and Education
                    Assistance Act (25 U.S.C. 5304));
                      (D) any public, quasi-public, or nonprofit
                    entity that uses innovative financing
                    techniques and market development tools to
                    accelerate the deployment of energy efficiency
                    technology; or
                      [(C)] (E) any other entity that is an
                    eligible borrower of the Rural Utilities
                    Service, as determined under section 1710.101
                    of title 7, Code of Federal Regulations (or a
                    successor regulation).
              [(2) Energy efficiency measures.--The term ``energy
            efficiency measures'' means, for or at property served
            by an eligible entity, structural improvements and
            investments in cost-effective, commercial technologies
            to increase energy efficiency (including cost-effective
            on- or off-grid renewable energy or energy storage
            systems).]
              (2) Energy efficiency measures.--The term ``energy
            efficiency measures'' means, with respect to any
            property service by an eligible entity--
                      (A) a structural improvement or investment in
                    a cost-effective, commercial technology to
                    increase energy efficiency (including cost-
                    effective on-or off-grid renewable energy or
                    energy storage system); and
                      (B) the replacement of a manufactured housing
                    unit or large appliance with a substantially
                    similar manufacturing housing unit or
                    appliance, respectively, if that replacement is
                    a cost-effective option with respect to energy
                    savings.
              (3) Qualified consumer.--The term ``qualified
            consumer'' means a consumer served by an eligible
            entity that has the ability to repay a loan made under
            subsection (d), as determined by the eligible entity.
              (4) Secretary.--The term ``Secretary'' means the
            Secretary of Agriculture, acting through the
            Administrator of the Rural Utilities Service.
      (c) Loans and Grants to Eligible Entities.--
              [(1) In general.--Subject to paragraph (2), the
            Secretary shall make loans to eligible entities that
            agree to use the loan funds to make loans to qualified
            consumers for the purpose of implementing energy
            efficiency measures.]
              (1) In general.--Subject to this subsection, the
            Secretary shall provide--
                      (A) loans to eligible entities that agree to
                    use the loan funds to make loans under
                    subsection (d) to qualified consumers for the
                    purpose of implementing energy efficiency
                    measures; and
                      (B) at the election of any eligible entity
                    that receives a loan under subparagraph (A) of
                    this paragraph, a grant in accordance with
                    paragraph (11).
              (2) Prioritization.--The Secretary shall give
            priority to applications from eligible entities serving
            at least 80 percent of their ratepayers residing in
            rural areas, as defined in section 343(a)(13)(A) of the
            Consolidated Farm and Rural Development Act (7 U.S.C.
            1991(a)(13)(A)).
              [(2)] (3) Requirements for loans.--
                      (A) In general.--As a condition of receiving
                    a loan under this subsection, an eligible
                    entity shall--
                              (i) establish a list of energy
                            efficiency measures [that is] expected
                            to decrease energy use or costs of
                            qualified consumers;
                              (ii) prepare an implementation plan
                            for use of the loan funds, including
                            use of any interest to be received
                            pursuant to subsection (d)(1)(A);
                              (iii) provide for appropriate
                            measurement and verification to
                            ensure--
                                      (I) the effectiveness of the
                                    energy efficiency loans made by
                                    the eligible entity; and
                                      (II) that there is no
                                    conflict of interest in
                                    carrying out this section; and
                              (iv) demonstrate expertise in
                            effective use of energy efficiency
                            measures at an appropriate scale.
                      (B) Revision of list of energy efficiency
                    measures.--Subject to the approval of the
                    Secretary, an eligible entity may update the
                    list required under subparagraph (A)(i) to
                    account for newly available efficiency
                    technologies.
                      (C) Existing energy efficiency programs.--An
                    eligible entity that, at any time before the
                    date that is 60 days after the date of
                    enactment of this section, has established an
                    energy efficiency program for qualified
                    consumers may use an existing list of energy
                    efficiency measures, implementation plan, or
                    measurement and verification system of that
                    program to satisfy the requirements of
                    subparagraph (A) if the Secretary determines
                    the list, plan, or systems are consistent with
                    the purposes of this section.
              [(3)] (4) No interest.--A loan under this subsection
            shall bear no interest.
              [(4)] (5) Eligibility for other loans.--The Secretary
            shall not include any debt incurred by a borrower under
            this section in the calculation of the debt-equity
            ratio of the borrower for purposes of eligibility for
            loans under the Rural Electrification Act of 1936 (7
            U.S.C. 901 et seq.).
              [(5)  Repayment.--With respect to a loan under
            paragraph (1)--
                      [(A) the term shall not exceed 20 years from
                    the date on which the loan is closed; and
                      [(B) except as provided in paragraph (7), the
                    repayment of each advance shall be amortized
                    for a period not to exceed 10 years.]
              (6) Repayment.--
                      (A) In general.--Subject to subparagraph (B)
                    of this paragraph, with respect to a loan under
                    paragraph (1)(A)--
                              (i) the term shall not exceed 20
                            years from the date on which the loan
                            is closed; and
                              (ii) except as provided in paragraph
                            (8), the repayment of each advance
                            shall be amortized for a period not to
                            exceed 10 years.
                      (B) Extensions.--The Secretary may extend the
                    term of a loan under subparagraph (A)(i), or
                    the deadline for repayment of an advance under
                    subparagraph (A)(ii), as the Secretary
                    determines appropriate.
              [(6)] (7) Amount of advances.--Any advance of loan
            funds to an eligible entity in any single year shall
            not exceed 50 percent of the approved loan amount.
              [(7)] (8) Special advance for start-up activities.--
                      (A) In general.--In order to assist an
                    eligible entity in defraying the appropriate
                    start-up costs (as determined by the Secretary)
                    of establishing new programs or modifying
                    existing programs to carry out subsection (d),
                    the Secretary shall allow an eligible entity to
                    request a special advance.
                      (B) Amount.--No eligible entity may receive a
                    special advance under this paragraph for an
                    amount that is greater than 4 percent of the
                    loan amount received by the eligible entity
                    under paragraph [(1)] (1)(A).
                      (C) Repayment.--[Repayment] Subject to an
                    applicable extension under paragraph (6)(B),
                    repayment of the special advance--
                              (i) shall be required during the 10-
                            year period beginning on the date on
                            which the special advance is made; and
                              (ii) at the election of the eligible
                            entity, may be deferred to the end of
                            the 10-year period.
              [(8) Limitation.--All special advances shall be made
            under a loan described in paragraph (1) during the
            first 10 years of the term of the loan.]
              (9) Limitations.--
                      (A) Special advances.--All special advances
                    shall be made under a loan described in
                    paragraph (1) during the first 10 years of the
                    term of the loan.
                      (B) Replacement of manufactured housing units
                    or large appliances.--Not more than 10 percent
                    of the total annual amount of budget authority
                    for loans described in paragraph (1) may be
                    used for the replacement of manufactured
                    housing units or large appliances.
              [(9)] (10) Accounting.--The Secretary shall take
            appropriate steps to streamline the accounting
            requirements on borrowers under this section while
            maintaining adequate assurances of the repayment of the
            loans.
              (11) Grants.--
                      (A) In general.--At the election of an
                    eligible entity that receives a loan under this
                    subsection, the Secretary may provide to the
                    eligible entity a grant to pay for a portion of
                    the costs incurred in--
                              (i) making repairs to the property of
                            a qualified consumer that facilitates
                            the energy efficiency measures for the
                            property financed through a loan
                            provided to the qualified consumer
                            under subsection (d); or
                              (ii) providing technical assistance,
                            outreach, and training.
                      (B) Amount.--
                              (i) In general.--Except as provided
                            in clause (ii), the amount of a grant
                            provided to an eligible entity under
                            this paragraph shall be equal to not
                            more than 5 percent of the amount of
                            the loan provided to the eligible
                            entity under this subsection.
                              (ii) Persistent poverty counties.--
                            The amount of a grant provided under
                            this paragraph to an eligible entity
                            that will use the grant to make loans
                            under subsection (d) to qualified
                            consumers located in a persistent
                            poverty county (as determined by the
                            Secretary) shall be equal to 10 percent
                            of the amount of the loan provided to
                            the eligible entity under this
                            subsection.
      (d) Loans to Qualified Consumers.--
              (1) Terms of loans.--Loans made by an eligible entity
            to qualified consumers using loan or grant funds
            provided by the Secretary under subsection (c)--
                      (A) may bear interest, not to exceed 5
                    percent, to be used for purposes that include--
                              (i) to establish a loan loss reserve;
                            and
                              (ii) to offset personnel and program
                            costs of eligible entities to provide
                            the loans;
                      [(B) shall finance energy efficiency measures
                    for the purpose of decreasing energy usage or
                    costs of the qualified consumer by an amount
                    that ensures, to the maximum extent
                    practicable, that a loan term of not more than
                    10 years will not pose an undue financial
                    burden on the qualified consumer, as determined
                    by the eligible entity;
                      [(C) shall not be used to fund purchases of,
                    or modifications to, personal property unless
                    the personal property is or becomes attached to
                    real property (including a manufactured home)
                    as a fixture;]
                      (B)(i) may have a term and amortization
                    schedule the length of which is the useful life
                    of the energy efficiency measures implemented
                    using the loan, if the loan term does not
                    exceed 20 years; and
                      (ii) shall finance energy efficiency measures
                    for the purpose of decreasing energy usage or
                    costs of the qualified consumer by an amount
                    that ensures, to the maximum extent
                    practicable, that the applicable loan term
                    described in clause (i) will not pose an undue
                    financial burden on the qualified consumer, as
                    determined by the eligible entity;
                      (C) shall not be used to fund purchases of,
                    or modifications to, personal property unless
                    the personal property--
                              (i) is a manufactured housing unit or
                            large appliance described in subsection
                            (b)(2)(B); or
                              (ii) is or becomes attached to real
                            property as a fixture;
                      (D) shall be repaid through charges added to
                    the recurring service bill for the property
                    for, or at which, energy efficiency measures
                    are or will be implemented, on the condition
                    that this requirement does not prohibit--
                              (i) the voluntary prepayment of a
                            loan by the owner of the property; or
                              (ii) the use of any additional
                            repayment mechanisms that are--
                                      (I) demonstrated to have
                                    appropriate risk mitigation
                                    features, as determined by the
                                    eligible entity; or
                                      (II) required if the
                                    qualified consumer is no longer
                                    a customer of the eligible
                                    entity; and
                      (E) shall require an energy audit by an
                    eligible entity to determine the impact of
                    proposed energy efficiency measures on the
                    energy costs and consumption of the qualified
                    consumer.
              (2) Contractors.--In addition to any other qualified
            general contractor, eligible entities may serve as
            general contractors.
              (3) Clarification of eligibility.--Notwithstanding
            any other provision of law (including regulations), an
            eligible entity may make a loan under this subsection
            to any qualified consumer located within the service
            territory of the eligible entity, regardless of whether
            the qualified consumer is located in a rural area.
      (e) Contract for Measurement and Verification, Training,
    Outreach, and Technical Assistance.--
              (1) In general.--Not later than 90 days after the
            date of enactment of this section, the Secretary--
                      (A) shall establish a plan for measurement
                    and verification, training, [and technical
                    assistance of the program] outreach, and
                    technical assistance relating to the program
                    under this section; and
                      (B) may enter into 1 or more contracts with a
                    qualified entity for the purposes of--
                              (i) providing measurement and
                            verification activities; and
                              (ii) developing a program to provide
                            technical assistance, outreach, and
                            training to the employees of eligible
                            entities to carry out this section.
              (2) Use of subcontractors authorized.--A qualified
            entity that enters into a contract under paragraph (1)
            may use subcontractors to assist the qualified entity
            in carrying out the contract.
              (3) Funding.--Not less than 3 but not more than 5
            percent of amounts appropriated under subsection (i)
            may be used to provide outreach, training, and
            technical assistance under this subsection.
      (f) Additional Authority.--The authority provided in this
    section is in addition to any other authority of the Secretary
    to offer loans under any other law.
      (g) Effective Period.--Subject to the availability of funds
    and except as otherwise provided in this section, the loans and
    other expenditures required to be made under this section shall
    be available until expended, with the Secretary authorized to
    make new loans as loans are repaid.
      (h) Publication.--Not later than 120 days after the end of
    each fiscal year, the Secretary shall publish a description
    of--
              (1) the number of applications received under this
            section for that fiscal year;
              (2) the number of loans made to eligible entities
            under this section for that fiscal year; and
              (3) the recipients of the loans described in
            paragraph (2).
      (i) Authorization of Appropriations.--There is authorized to
    be appropriated to carry out this section $75,000,000 for each
    of fiscal years [2014 through 2023] 2027 through 2031.

                    TITLE VII--RESEARCH AND RELATED MATTERS

               *       *       *       *       *       *       *

                          Subtitle D--New Authorities

               *       *       *       *       *       *       *

    SEC. 7407. ORGANIC PRODUCTION AND MARKET DATA INITIATIVES.

      (a) In General.--The Secretary shall collect and report data
    on the production and marketing of organic agricultural
    products.
      (b) Requirements.--In carrying out subsection (a), the
    Secretary shall, at a minimum--
              (1) collect and distribute comprehensive reporting of
            prices relating to organically produced agricultural
            products;
              (2) conduct surveys and analysis and publish reports
            relating to organic production, handling, distribution,
            retail, and trend studies (including consumer
            purchasing patterns); [and]
              (3) develop surveys and report statistical analysis
            on organically produced agricultural products[.]; and
              (4) collect and publish cost-of-production data for
            organic milk, through support from regional and
            national programs, including regularly reported data
            related to--
                      (A) the costs of major organic feedstuffs,
                    including--
                              (i) the prices for major organic
                            feedstuffs produced domestically;
                              (ii) the prices for imported major
                            organic feedstuffs; and
                              (iii) all other costs relating to the
                            production of organic milk;
                      (B) the establishment of an Organic All Milk
                    Prices Survey, which shall be analogous to the
                    existing All Milk Prices Survey conducted by
                    the National Agricultural Statistics Service,
                    to gather and report monthly data about the
                    amounts organic dairy farmers are being paid
                    for organic milk and prices received for
                    organic dairy cows, including--
                              (i) national data; and
                              (ii) data relating to, at a minimum,
                            the 6 regions with the greatest
                            quantity of organic dairy production;
                            and
                      (C) periodic organic milk reporting under
                    which the Secretary, using data collected by
                    the National Agricultural Statistics Service,
                    the Economic Research Service, or the
                    Agricultural Marketing Service, publishes new
                    periodic reports that include, or add to
                    existing periodic reports relating to, data for
                    organic milk, which shall be equivalent to data
                    reported for conventionally produced milk.
      (c) Report.--Not later than 180 days after the date of
    enactment of this subsection and annually thereafter, 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--
              (1) describes the progress that has been made in
            implementing this section;
              (2) describes how data collection agencies (such as
            the Agricultural Marketing Service and the National
            Agricultural Statistics Service) are coordinating with
            data user agencies (such as the Risk Management Agency)
            to ensure that data collected under this section can be
            used by data user agencies, including by the Risk
            Management Agency to offer price elections for all
            organic crops; and
              (3) identifies any additional production and
            marketing data needs.
      (d) Funding.--
              (1) Mandatory funding.--Of the funds of the Commodity
            Credit Corporation, the Secretary shall use to carry
            out this section, to remain available until expended--
                      (A) $5,000,000 for each of the periods of
                    fiscal years 2008 through 2012 and 2014 through
                    2018;
                      (B) $5,000,000 for the period of fiscal years
                    2019 through 2023;
                      (C) $1,000,000 for fiscal year 2024; and
                      (D) $10,000,000 for the period of fiscal
                    years 2026 through 2031.
              (2) Discretionary funding.--In addition to funds made
            available under paragraph (1), there are authorized to
            be appropriated to carry out this section not more than
            $5,000,000 for each of fiscal years 2008 through [2023]
            2031, to remain available until expended.

               *       *       *       *       *       *       *

                                TITLE IX--ENERGY

    SEC. 9001. DEFINITIONS.

       Except as otherwise provided, in this title:
              (1) Administrator.--The term ``Administrator'' means
            the Administrator of the Environmental Protection
            Agency.
              (2) Advisory committee.--The term ``Advisory
            Committee'' means the Biomass Research and Development
            Technical Advisory Committee established by section
            9008(d)(1).
              (3) Advanced biofuel.--
                      (A) In general.--The term ``advanced
                    biofuel'' means fuel derived from renewable
                    biomass other than corn kernel starch.
                      (B) Inclusions.--Subject to subparagraph (A),
                    the term ``advanced biofuel'' includes--
                              (i) biofuel derived from cellulose,
                            hemicellulose, or lignin;
                              (ii) biofuel derived from sugar and
                            starch (other than ethanol derived from
                            corn kernel starch);
                              (iii) biofuel derived from waste
                            material, including crop residue, other
                            vegetative waste material, animal
                            waste, food waste, and yard waste;
                              (iv) diesel-equivalent fuel and
                            sustainable aviation fuel derived from
                            renewable biomass, including vegetable
                            oil and animal fat;
                              (v) biogas (including landfill gas
                            and sewage waste treatment gas)
                            produced through the conversion of
                            organic matter from renewable biomass;
                              (vi) butanol or other alcohols
                            produced through the conversion of
                            organic matter from renewable biomass;
                            and
                              (vii) other fuel derived from
                            cellulosic biomass.
              (4) 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--
                      (A) composed, in whole or in significant
                    part, of biological products, including
                    renewable domestic agricultural materials,
                    renewable chemicals, and forestry materials; or
                      (B) an intermediate ingredient or feedstock.
              (5) Biofuel.--The term ``biofuel'' means a fuel
            derived from renewable biomass.
              (6) Biomass conversion facility.--The term ``biomass
            conversion facility'' means a facility that converts or
            proposes to convert renewable biomass into--
                      (A) heat;
                      (B) power;
                      (C) biobased products; or
                      (D) advanced biofuels.
              (7) Biorefinery.--The term ``biorefinery'' means a
            facility (including equipment and processes) that--
                      (A) converts renewable biomass or an
                    intermediate ingredient or feedstock of
                    renewable biomass into any 1 or more, or a
                    combination, of--
                              (i) biofuels;
                              (ii) renewable chemicals; or
                              (iii) biobased products; and
                      (B) may produce electricity.
              (8) Board.--The term ``Board'' means the Biomass
            Research and Development Board established by section
            9008(c).
              (9) Forest product.--
                      (A) In general.--The term ``forest product''
                    means a product made from materials derived
                    from the practice of forestry or the management
                    of growing timber.
                      (B) Inclusions.--The term ``forest product''
                    includes--
                              (i) pulp, paper, paperboard, pellets,
                            lumber, and other wood products; and
                              (ii) any recycled products derived
                            from forest materials.
              (10) 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).
              (11) Institution of higher education.--The term
            ``institution of higher education'' has the meaning
            given the term in section 102(a) of the Higher
            Education Act of 1965 (20 U.S.C. 1002(a)).
              (12) Intermediate ingredient or feedstock.--The term
            ``intermediate ingredient or feedstock'' means a
            material or compound made in whole or in significant
            part from biological products, including renewable
            agricultural materials (including plant, animal, and
            marine materials) or forestry materials, that are
            subsequently used to make a more complex compound or
            product.
              (13) Renewable biomass.--The term ``renewable
            biomass'' means--
                      (A) materials, pre-commercial thinnings, or
                    invasive species from National Forest System
                    land and public lands (as defined in section
                    103 of the Federal Land Policy and Management
                    Act of 1976 (43 U.S.C. 1702)) that--
                              (i) are byproducts of preventive
                            treatments that are removed--
                                      (I) to reduce hazardous
                                    fuels;
                                      (II) to reduce or contain
                                    disease or insect infestation;
                                    or
                                      (III) to restore ecosystem
                                    health;
                              (ii) would not otherwise be used for
                            higher-value products; and
                              (iii) are harvested in accordance
                            with--
                                      (I) applicable law and land
                                    management plans; and
                                      (II) the requirements for--
                                              (aa) old-growth
                                            maintenance,
                                            restoration, and
                                            management direction of
                                            paragraphs (2), (3),
                                            and (4) of subsection
                                            (e) of section 102 of
                                            the Healthy Forests
                                            Restoration Act of 2003
                                            (16 U.S.C. 6512); and
                                              (bb) large-tree
                                            retention of subsection
                                            (f) of that section; or
                      (B) any organic matter that is available on a
                    renewable or recurring basis from non-Federal
                    land or land belonging to an Indian or Indian
                    tribe that is held in trust by the United
                    States or subject to a restriction against
                    alienation imposed by the United States,
                    including--
                              (i) renewable plant material,
                            including--
                                      (I) feed grains;
                                      (II) other agricultural
                                    commodities;
                                      (III) other plants and trees;
                                    and
                                      (IV) algae; and
                              (ii) waste material, including--
                                      (I) crop residue;
                                      (II) other vegetative waste
                                    material (including wood waste
                                    and wood residues);
                                      (III) animal waste and
                                    byproducts (including fats,
                                    oils, greases, and manure); and
                                      (IV) food waste and yard
                                    waste.
              (14) Renewable chemical.--The term ``renewable
            chemical'' means a monomer, polymer, plastic,
            formulated product, or chemical substance produced from
            renewable biomass.
              (15) Renewable energy.--The term ``renewable energy''
            means energy derived from--
                      (A) a wind, solar, renewable biomass, ocean
                    (including tidal, wave, current, and thermal),
                    geothermal, [or hydroelectric] hydroelectric,
                    or waste energy recovery source; or
                      (B) hydrogen derived from renewable biomass
                    or water using an energy source described in
                    subparagraph (A).
              (16) Renewable energy system.--
                      (A) In general.--Subject to subparagraph (C),
                    the term ``renewable energy system'' means a
                    system that producesusable energy from a
                    renewable energy source.
                      (B) Inclusions.--The term ``renewable energy
                    system'' includes--
                              (i) distribution components necessary
                            to move energy produced by a system
                            described in subparagraph (A) to the
                            initial point of sale; and
                              (ii) other components and ancillary
                            infrastructure of a system described in
                            subparagraph (A), such as a storage
                            system.
                      (C) Limitation.--A system described in
                    subparagraph (A) may not include a mechanism
                    for dispensing energy at retail.
              (17) Secretary.--The term ``Secretary'' means the
            Secretary of Agriculture.

    SEC. 9002. BIOBASED MARKETS PROGRAM.

      (a) Federal Procurement of Biobased Products.--
              (1) Definition of procuring agency.--In this
            subsection, the term ``procuring agency'' means--
                      (A) any Federal agency that is using Federal
                    funds for procurement; or
                      (B) a person that is a party to a contract
                    with any Federal agency, with respect to work
                    performed under such a contract.
              (2) Procurement preference.--
                      (A) In general.--
                              (i) Procuring agency duties.--Except
                            as provided in clause (ii) and
                            subparagraph (B), after the date
                            specified in applicable guidelines
                            prepared pursuant to paragraph (3),
                            each procuring agency shall--
                                      (I) establish a procurement
                                    program, develop procurement
                                    specifications, and procure
                                    biobased products identified
                                    under the guidelines described
                                    in paragraph (3) in accordance
                                    with this section;
                                      (II) with respect to items
                                    described in the guidelines,
                                    give a procurement preference
                                    to those items that--
                                              (aa) are composed of
                                            the highest percentage
                                            of biobased products
                                            practicable; or
                                              (bb) comply with the
                                            regulations issued
                                            under section 103 of
                                            Public Law 100-556 (42
                                            U.S.C. 6914b-1); and
                                      (III) establish a targeted
                                    biobased-only procurement
                                    requirement under which the
                                    procuring agency shall issue a
                                    certain number of biobased-only
                                    contracts when the procuring
                                    agency is purchasing products,
                                    or purchasing services that
                                    include the use of products,
                                    that are included in a biobased
                                    product category designated by
                                    the Secretary.
                              (ii) Exception.--The requirements of
                            clause (i)(I) to establish a
                            procurement program and develop
                            procurement specifications shall not
                            apply to a person described in
                            paragraph (1)(B).
                      (B) Flexibility.--Notwithstanding
                    subparagraph (A), a procuring agency may decide
                    not to procure items described in that
                    subparagraph if the procuring agency determines
                    that the items--
                              (i) are not reasonably available
                            within a reasonable period of time;
                              (ii) fail to meet--
                                      (I) the performance standards
                                    set forth in the applicable
                                    specifications; or
                                      (II) the reasonable
                                    performance standards of the
                                    procuring agencies; or
                              (iii) are available only at an
                            unreasonable price.
                      (C) Minimum requirements.--Each procurement
                    program required under this subsection shall,
                    at a minimum--
                              (i) be consistent with applicable
                            provisions of Federal procurement law;
                              (ii) ensure that items composed of
                            biobased products will be purchased to
                            the maximum extent practicable;
                              (iii) include a component to promote
                            the procurement program;
                              (iv) provide for an annual review and
                            monitoring of the effectiveness of the
                            procurement program; and
                              (v) adopt 1 of the 2 polices
                            described in subparagraph (D) or (E),
                            or a policy substantially equivalent to
                            either of those policies.
                      (D) Case-by-case policy.--
                              (i) In general.--Subject to
                            subparagraph (B) and except as provided
                            in clause (ii), a procuring agency
                            adopting the case-by-case policy shall
                            award a contract to the vendor offering
                            an item composed of the highest
                            percentage of biobased products
                            practicable.
                              (ii) Exception.--Subject to
                            subparagraph (B), an agency adopting
                            the policy described in clause (i) may
                            make an award to a vendor offering
                            items with less than the maximum
                            biobased products content.
                      (E) Minimum content standards.--Subject to
                    subparagraph (B), a procuring agency adopting
                    the minimum content standards policy shall
                    establish minimum biobased products content
                    specifications for awarding contracts in a
                    manner that ensures that the biobased products
                    content required is consistent with this
                    subsection.
                      (F) Certification.--After the date specified
                    in any applicable guidelines prepared pursuant
                    to paragraph (3), contracting offices shall
                    require that 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.
                      (G) Procurement resources.--The Office of
                    Federal Procurement Policy, in coordination
                    with the Secretary, shall provide educational
                    materials to procuring agencies to consider the
                    longevity of a product, economic savings, and
                    the efficacy and performance of a product when
                    making procurement decisions under this
                    subsection.
              (3) Guidelines.--
                      (A) 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 subsection.
                      (B) Requirements.--The guidelines under this
                    paragraph shall--
                              (i) designate those items (including
                            finished products) that are or can be
                            produced with biobased products
                            (including biobased products for which
                            there is only a single product or
                            manufacturer in the category) that will
                            be subject to the preference described
                            in paragraph (2);
                              (ii) designate those intermediate
                            ingredients and feedstocks that are or
                            can be used to produce items that will
                            be subject to the preference described
                            in paragraph (2);
                              (iii) automatically designate items
                            composed of intermediate ingredients
                            and feedstocks designated under clause
                            (ii), if the content of the designated
                            intermediate ingredients and feedstocks
                            exceeds 50 percent of the item (unless
                            the Secretary determines a different
                            composition percentage is appropriate);
                              (iv) set forth recommended practices
                            with respect to the procurement of
                            biobased products and items containing
                            such materials;
                              (v) require reporting of quantities
                            and types of biobased products
                            purchased by procuring agencies;
                              (vi) promote biobased products,
                            including forest products, that apply
                            an innovative approach to growing,
                            harvesting, sourcing, procuring,
                            processing, manufacturing, or
                            application of biobased products
                            regardless of the date of entry into
                            the marketplace;
                              (vii) as determined to be necessary
                            by the Secretary based on the
                            availability of data, provide
                            information as to the availability,
                            relative price, performance, and
                            environmental and public health
                            benefits of such materials and items;
                            and
                              (viii) take effect on the date
                            established in the guidelines, which
                            may not exceed 1 year after
                            publication.
                      (C) Information provided.--Information
                    provided pursuant to subparagraph (B)(v) with
                    respect to a material or item shall be
                    considered to be provided for another item made
                    with the same material or item.
                      (D) Prohibition.--Guidelines issued under
                    this paragraph may not require a manufacturer
                    or vendor of biobased products, as a condition
                    of the purchase of biobased products from the
                    manufacturer or vendor, to provide to procuring
                    agencies more data than would be required to be
                    provided by other manufacturers or vendors
                    offering products for sale to a procuring
                    agency, other than data confirming the biobased
                    content of a product.
                      (E) Qualifying purchases.--The guidelines
                    shall apply with respect to any purchase or
                    acquisition of a procurement item for which--
                              (i) the purchase price of the item
                            exceeds $10,000; or
                              (ii) the quantity of the items or of
                            functionally-equivalent items purchased
                            or acquired during the preceding fiscal
                            year was at least $10,000.
                      (F) Required designations.--Not later than 1
                    year after the date of enactment of this
                    subparagraph, the Secretary shall begin to
                    designate intermediate ingredients or
                    feedstocks and assembled and finished biobased
                    products in the guidelines issued under this
                    paragraph.
              (4) Administration.--
                      (A) Office of federal procurement policy.--
                    The Office of Federal Procurement Policy, in
                    cooperation with the Secretary, shall--
                              (i) coordinate the implementation of
                            this subsection with other policies for
                            Federal procurement;
                              [(ii) annually collect the
                            information required to be reported
                            under subparagraph (B) and make the
                            information publicly available;]
                              [(iii)] (ii) take a leading role in
                            informing Federal agencies concerning,
                            and promoting the adoption of and
                            compliance with, procurement
                            requirements for biobased products by
                            Federal agencies; and
                              [(iv)] (iii) not less than once every
                            2 years, submit to Congress a report
                            that--
                                      (I) describes the progress
                                    made in carrying out this
                                    subsection; and
                                      (II) contains a summary of
                                    the information reported
                                    pursuant to subparagraph (B).
                      (B) Other agencies.--To assist the Office of
                    Federal Procurement Policy in carrying out
                    subparagraph (A)--
                              (i) each procuring agency shall
                            submit each year to the Office of
                            Federal Procurement Policy and the
                            Secretary, to the maximum extent
                            practicable, [information concerning--]
                            a report that describes, for the year
                            covered by the report--
                                      (I) actions taken to
                                    implement paragraph (2),
                                    including the actions taken by
                                    the procuring agency to
                                    establish and implement the
                                    biobased procurement program of
                                    the procuring agency under that
                                    paragraph;
                                      (II) the results of the
                                    annual review and monitoring
                                    program established under
                                    paragraph (2)(C)(iv);
                                      (III) the number and dollar
                                    value of contracts entered into
                                    during the year that include
                                    the direct procurement of
                                    biobased products;
                                      (IV) the number of service
                                    and construction (including
                                    renovations) contracts entered
                                    into during the year that
                                    include language on the use of
                                    biobased products; [and]
                                      (V) the types and dollar
                                    value of biobased products
                                    actually used by contractors in
                                    carrying out service and
                                    construction (including
                                    renovations) contracts during
                                    the previous year; [and]
                                      (VI)(aa) the specific
                                    categories of biobased products
                                    that are unavailable to meet
                                    procurement needs of the
                                    procuring agencies; and
                                      (bb) the desired performance
                                    characteristics and other
                                    relevant specifications for
                                    those products; and
                                      (VII) if applicable, an
                                    explanation of the procurement
                                    requirement or updated
                                    procurement requirement
                                    established under paragraph
                                    (2)(A)(i) that procuring
                                    agencies failed to meet and
                                    reasons for the failure; and
                              (ii) the General Services
                            Administration and the Defense
                            Logistics Agency shall submit each year
                            to the Office of Federal Procurement
                            Policy information concerning, to the
                            maximum extent practicable, the types
                            and dollar value of biobased products
                            purchased by procuring agencies.
                      (C) Procurement subject to other law.--Any
                    procurement by any Federal agency that 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 the requirements are inconsistent with the
                    regulations.
                      (D) Accountability.--The Office of Federal
                    Procurement Policy, in consultation with the
                    Secretary, shall annually--
                              (i) collect the information required
                            to be reported under subparagraph (B)
                            and make the information publicly
                            available;
                              (ii) using the information collected
                            under subparagraph (B) of this
                            paragraph, document relevant procuring
                            agencies under paragraph (2)(A)(i)
                            that, as applicable, have established a
                            procurement program in accordance with
                            paragraph (2)(A)(i)(I); and
                              (iii) make the information publicly
                            available, subject to the exemptions
                            from disclosure under section 552(b) of
                            title 5, United States Code.
      (b) 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 ``USDA Certified
            Biobased Product''.
              (2) Eligibility criteria.--
                      (A) Criteria.--
                              (i) In general.--Not later than 90
                            days after the date of the enactment of
                            the Food, Conservation, and Energy Act
                            of 2008 and except as provided in
                            clause (ii), the Secretary, in
                            consultation with the Administrator and
                            representatives from small and large
                            businesses, academia, other Federal
                            agencies, and such other persons as the
                            Secretary considers appropriate, shall
                            issue criteria (as of the date of
                            enactment of that Act) for determining
                            which products may qualify to receive
                            the label under paragraph (1).
                              (ii) Exception.--Clause (i) shall not
                            apply to final criteria that have been
                            issued (as of the date of enactment of
                            that Act) by the Secretary.
                              (iii) Renewable chemicals.--Not later
                            than 180 days after the date of
                            enactment of this clause, the Secretary
                            shall update the criteria issued under
                            clause (i) to provide criteria for
                            determining which renewable chemicals
                            may qualify to receive the label under
                            paragraph (1).
                      (B) Requirements.--Criteria issued under
                    subparagraph (A) shall--
                              (i) encourage the purchase of
                            products with the maximum biobased
                            content;
                              (ii) provide that the Secretary may
                            designate as biobased for the purposes
                            of the voluntary program established
                            under this subsection finished products
                            that contain significant portions of
                            biobased materials or components; and
                              (iii) to the maximum extent
                            practicable, be consistent with the
                            guidelines issued under subsection
                            (a)(3).
              (3) Use of label.--
                      (A) In general.--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).
                      (B) Auditing and compliance.--The Secretary
                    may carry out such auditing and compliance
                    activities as the Secretary determines to be
                    necessary to ensure compliance with
                    subparagraph (A).
              (4) Assembled and finished products.--Not later than
            1 year after the date of enactment of this paragraph,
            the Secretary shall begin issuing criteria for
            determining which assembled and finished products may
            qualify to receive the label under paragraph (1).
      (c) Recognition.--The Secretary shall--
              (1) establish a program to recognize Federal agencies
            and private entities that use a substantial amount of
            biobased products; and
              (2) encourage Federal agencies to establish
            incentives programs to recognize Federal employees or
            contractors that make exceptional contributions to the
            expanded use of biobased products.
      (d) Limitation.--Nothing in this section shall apply to the
    procurement of motor vehicle fuels, heating oil, or
    electricity.
      (e) Inclusion.--Effective beginning on the date that is 90
    days after the date of enactment of the Food, Conservation, and
    Energy Act of 2008, the Architect of the Capitol, the Sergeant
    at Arms of the Senate, and the Chief Administrative Officer of
    the House of Representatives shall consider the biobased
    product designations made under this section in making
    procurement decisions for the Capitol Complex.
      (f) Manufacturers of Renewable Chemicals and Biobased
    Products.--
              (1) NAICS and NAPCS codes.--The Secretary and the
            Secretary of Commerce shall jointly develop North
            American Industry Classification System codes and North
            American Product Classification System codes for--
                      [(A) renewable chemicals manufacturers; and
                      [(B) biobased products manufacturers.]
                      (A) renewable chemicals manufacturers and
                    biobased products manufacturers; and
                      (B) renewable chemicals and biobased
                    products.
              (2) Report.--To inform the development of codes under
            paragraph (1), the Secretary shall, within 90 days
            after the date of the enactment of this paragraph,
            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
            provides--
                      (A) the Federal statistical collections of
                    information related to the North American
                    Industry Classification System codes and the
                    North American Product Classification System
                    codes that utilize bioeconomy-specific data;
                      (B) recommendations to implement any
                    bioeconomy related changes as part of the 2027
                    revisions of the North American Industry
                    Classification System codes and the North
                    American Product Classification System codes;
                    and
                      (C) an assessment of the impacts that
                    bioeconomy-specific North American Industry
                    Classification System codes and North American
                    Product Classification System codes would have
                    on the measurement by the agency of the
                    economic contributions of the bioeconomy.
              [(2)] (3) National testing center registry.--The
            Secretary shall establish a national registry of
            testing centers for biobased products that will serve
            biobased product manufacturers.
      (g) Forest Products Laboratory Coordination.--In determining
    whether products are eligible for the ``USDA Certified Biobased
    Product'' label, the Secretary (acting through the Forest
    Products Laboratory) shall provide appropriate technical and
    other assistance to the program and applicants for forest
    products.
      (h) Streamlining.--
              (1) In general.--Not later than 1 year after the date
            of enactment of this subsection, the Secretary shall
            establish guidelines for an integrated process under
            which biobased products may be, in 1 expedited approval
            process--
                      (A) determined to be eligible for a Federal
                    procurement preference under subsection (a);
                    and
                      (B) approved to use the ``USDA Certified
                    Biobased Product'' label under subsection (b).
              (2) Initiation.--The Secretary shall ensure that a
            review of a biobased product under the integrated
            qualification process established pursuant to paragraph
            (1) may be initiated on receipt of a recommendation or
            petition from a manufacturer, vendor, or other
            interested party.
              (3) Product designations.--The Secretary may issue a
            product designation pursuant to subsection (a)(3)(B),
            or approve the use of the ``USDA Certified Biobased
            Product'' label under subsection (b), through
            streamlined procedures, which shall not be subject to
            chapter 7 of title 5, United States Code.
      (i) Requirement of Procuring Agencies.--A procuring agency
    (as defined in subsection (a)(1)) shall not establish
    regulations, guidance, or criteria regarding the procurement of
    biobased products, pursuant to this section or any other law,
    that impose limitations on that procurement that are more
    restrictive than the limitations established by the Secretary
    under the regulations to implement this section.
      (j) Reports.--
              (1) In general.--Not later than 180 days after the
            date of enactment of the Food, Conservation, and Energy
            Act of 2008 and each year thereafter, the Secretary
            shall submit to Congress a report on the implementation
            of this section.
              (2) Contents.--Each report under paragraph (1) shall
            include--
                      (A) a comprehensive management plan that
                    establishes tasks, milestones, and timelines,
                    organizational roles and responsibilities, and
                    funding allocations for fully implementing this
                    section;
                      (B) information on the status of
                    implementation of--
                              (i) item designations (including
                            designation of intermediate ingredients
                            and feedstocks); and
                              (ii) the voluntary labeling program
                            established under subsection (b); and
                      (C) the progress made by other Federal
                    agencies in compliance with the biobased
                    procurement requirements, including the
                    quantity of purchases made.
              (3) Economic impact study and report.--
                      (A) In general.--The Secretary shall conduct
                    a study to assess the economic impact of the
                    biobased products industry, including--
                              (i) the quantity of biobased products
                            sold;
                              (ii) the value of the biobased
                            products;
                              (iii) the quantity of jobs created;
                              (iv) the quantity of petroleum
                            displaced;
                              (v) other environmental benefits; and
                              (vi) areas in which the use or
                            manufacturing of biobased products
                            could be more effectively used,
                            including identifying any technical and
                            economic obstacles and recommending how
                            those obstacles can be overcome.
                      (B) Report.--Not later than 1 year after the
                    date of enactment of this subparagraph, the
                    Secretary shall submit to Congress a report
                    describing the results of the study conducted
                    under subparagraph (A).
      (k) Funding.--
              (1) Mandatory funding.--Of the funds of the Commodity
            Credit Corporation, the Secretary shall use to carry
            out this section $3,000,000 for each of fiscal years
            2014 through [2024] 2031.
              (2) Discretionary funding.--There is authorized to be
            appropriated to carry out this section $3,000,000 for
            each of fiscal years 2019 through [2023] 2031.
      (l) Biobased Product Inclusion.--In this section, the term
    ``biobased product'' (as defined in section 9001) includes,
    with respect to forestry materials, forest products that meet
    biobased content requirements, notwithstanding the market share
    the product holds, the age of the product, or whether the
    market for the product is new or emerging.
      (m) Rural Development Mission Area.--In carrying out this
    section, except as provided in subsection (g), the Secretary
    shall act through the rural development mission area.

    SEC. 9003. BIOREFINERY, RENEWABLE CHEMICAL, AND BIOBASED PRODUCT
                        MANUFACTURING ASSISTANCE.

      (a) Purpose.--The purpose of this section is to assist in the
    development of new and emerging technologies for the
    development of advanced biofuels, renewable chemicals, and
    biobased product manufacturing so as to--
              (1) increase the energy independence of the United
            States;
              (2) promote resource conservation, public health, and
            the environment;
              (3) diversify markets for agricultural and forestry
            products and agriculture waste material; and
              (4) create jobs and enhance the economic development
            of the rural economy.
      (b) Definitions.--In this section:
              (1) Biobased product manufacturing.--The term
            ``biobased product manufacturing'' means development,
            construction, and retrofitting of technologically new
            or innovative commercial-scale processing and
            manufacturing equipment and required facilities that
            will be used to convert renewable chemicals and other
            biobased outputs of biorefineries into end-user
            products, renewable chemicals, or biobased products on
            a commercial scale.
              (2) Eligible entity.--The term ``eligible entity''
            means an individual, entity, Indian tribe, or unit of
            State or local government, including a corporation,
            farm cooperative, farmer cooperative organization,
            association of agricultural producers, National
            Laboratory, institution of higher education, rural
            electric cooperative, public power entity, or
            consortium of any of those entities.
              (3) Eligible technology.--The term ``eligible
            technology'' means, as determined by the Secretary--
                      (A) a technology that is being adopted in a
                    viable commercial-scale operation of a
                    biorefinery that produces any 1 or more, or a
                    combination, of--
                                              (i) an advanced
                                            biofuel;
                                              (ii) a renewable
                                            chemical; or
                                              (iii) a biobased
                                            product; and
                      (B) a technology not described in
                    subparagraph (A) that has been demonstrated to
                    have technical and economic potential for
                    commercial application in a biorefinery that
                    produces any 1 or more, or a combination, of--
                                              (i) an advanced
                                            biofuel;
                                              (ii) a renewable
                                            chemical; or
                                              (iii) a biobased
                                            product.
      (c) Assistance.--The Secretary shall make to available to
    eligible entities guarantees for loans made to fund the
    development, construction, and retrofitting of commercial-scale
    biorefineries using eligible technology.
      (d) Loan Guarantees.--
              (1) Selection criteria.--
                      (A) In general.--In approving loan guarantee
                    applications, the Secretary shall establish a
                    priority scoring system that assigns priority
                    scores to each application and only approve
                    applications that exceed a specified minimum,
                    as determined by the Secretary.
                      (B) Feasibility.--
                              (i) In general.--In approving a loan
                            guarantee application, the Secretary
                            shall determine the technical and
                            economic feasibility of the project
                            based on a feasibility study of the
                            project described in the application
                            conducted by an independent third
                            party.
                              (ii) Waiver.--The Secretary may waive
                            the requirement that the applicant must
                            demonstrate commercial viability for
                            projects adopting commercially
                            available technology.
                      (C) Technical review agreement.--
                              (i) In general.--The Secretary shall
                            enter into an agreement with each
                            project applicant that clearly outlines
                            the specific objectives, outcomes, and
                            conditions by which the Secretary
                            determines successful technical
                            feasibility of the project under this
                            section.
                              (ii) Conditions of agreement.--The
                            agreement provided under clause (i)
                            shall include clear guidelines and
                            expectations for the methodologies,
                            protocols, and procedures, and what the
                            eligible technology must demonstrate,
                            for the Department to determine
                            technical feasibility from an
                            integrated demonstration unit,
                            including--
                                      (I) a set timeline for the
                                    integrated demonstration unit
                                    campaign and final technical
                                    report to show reliable
                                    evidence of continuous, steady-
                                    state production;
                                      (II) criteria and methods for
                                    evaluating the project's
                                    success, including any third-
                                    party assessments or
                                    evaluations that may be
                                    conducted during the
                                    demonstration period and at the
                                    conclusion of the set timeline;
                                      (III) criteria and methods to
                                    prove the ability of the
                                    integrated demonstration unit
                                    to use project-specific
                                    feedstock for the production of
                                    advanced biofuels, renewable
                                    chemicals, or biobased products
                                    at a yield and quality
                                    consistent with the design
                                    basis of the project;
                                      (IV) required information and
                                    conditions that demonstrate
                                    operation duration, quality,
                                    and quantity specifications;
                                    and
                                      (V) any other information
                                    that, if supplied to the
                                    Secretary, would assist the
                                    eligible entity in sufficiently
                                    demonstrating a project's
                                    technical feasibility.
                              (iii) Failure to comply with
                            agreement.--
                                      (I) Noncompliance
                                    notification.--If a project
                                    applicant fails to comply with
                                    the technical feasibility
                                    requirements as provided under
                                    clause (ii), the Secretary
                                    shall issue a written notice to
                                    the project applicant detailing
                                    the specific deficiencies and
                                    providing a reasonable
                                    timeframe for the project
                                    applicant to rectify the
                                    issues.
                                      (II) Corrective action
                                    period.--The project applicant
                                    shall have a period of not more
                                    than 90 days from the date of
                                    issuance of the noncompliance
                                    notice to address the
                                    identified deficiencies and
                                    submit a revised technical
                                    feasibility assessment for
                                    reconsideration.
                              (iv) Technical feasibility
                            approval.--Upon fulfillment of the
                            conditions of agreement established
                            under clause (ii) or approval of the
                            revised technical feasibility
                            assessment under clause (iii)(II), the
                            Secretary shall determine the project
                            to be technically feasible.
                      [(C)] (D) Scoring system.--In determining the
                    priority scoring system for loan guarantees
                    under subsection (c), the Secretary shall
                    consider--
                              (i) whether the applicant has
                            established a market for the advanced
                            biofuel and the byproducts produced;
                              (ii) whether the area in which the
                            applicant proposes to place the
                            biorefinery has other similar
                            facilities;
                              (iii) whether the applicant is
                            proposing to use a feedstock not
                            previously used in the production of
                            advanced biofuels;
                              (iv) whether the applicant is
                            proposing to work with producer
                            associations or cooperatives;
                              (v) the level of financial
                            participation by the applicant,
                            including support from non-Federal and
                            private sources;
                              (vi) whether the applicant has
                            established that the adoption of the
                            process proposed in the application
                            will have a positive impact on resource
                            conservation, public health, and the
                            environment;
                              (vii) whether the applicant can
                            establish that if adopted, the biofuels
                            production technology proposed in the
                            application will not have any
                            significant negative impacts on
                            existing manufacturing plants or other
                            facilities that use similar feedstocks;
                              (viii) the potential for rural
                            economic development;
                              (ix) the level of local ownership
                            proposed in the application; and
                              (x) whether the project can be
                            replicated.
                      [(D)] (E) Project diversity.--In approving
                    loan guarantee applications, the Secretary
                    shall ensure that, to the extent practicable,
                    there is diversity in the types of projects
                    approved for loan guarantees to ensure that as
                    wide a range as possible of technologies,
                    products, and approaches are assisted.
              (2) Limitations.--
                      (A) Maximum amount of loan guaranteed.--The
                    principal amount of a loan guaranteed under
                    subsection (c) may not exceed $250,000,000.
                      (B) Maximum percentage of loan guaranteed.--
                              (i) In general.--Except as otherwise
                            provided in this subparagraph, a loan
                            guaranteed under subsection (c) shall
                            be in an amount not to exceed 80
                            percent of the project costs, as
                            determined by the Secretary.
                              (ii) Other direct federal funding.--
                            The amount of a loan guaranteed for a
                            project under subsection (c) shall be
                            reduced by the amount of other direct
                            Federal funding that the eligible
                            entity receives for the same project.
                              (iii) Authority to guarantee the
                            loan.--The Secretary may guarantee up
                            to 90 percent of the principal and
                            interest due on a loan guaranteed under
                            subsection (c).
                      (C) Loan guarantee fund distribution.--Of the
                    funds made available for loan guarantees for a
                    fiscal year under subsection (g), 50 percent of
                    the funds shall be reserved for obligation
                    during the second half of the fiscal year.
      (e) Consultation.--In carrying out this section, the
    Secretary shall consult with the Secretary of Energy.
      (f) Condition on Provision of Assistance.--
              (1) In general.--As a condition of receiving a grant
            or loan guarantee under this section, an eligible
            entity shall ensure that all laborers and mechanics
            employed by contractors or subcontractors in the
            performance of construction work financed, in whole or
            in part, with the grant or loan guarantee, as the case
            may be, shall be paid wages at rates not less than
            those prevailing on similar construction in the
            locality, as determined by the Secretary of Labor in
            accordance with sections 3141 through 3144, 3146, and
            3147 of title 40, United States Code.
              (2) Authority and functions.--The Secretary of Labor
            shall have, with respect to the labor standards
            described in paragraph (1), the authority and functions
            set forth in Reorganization Plan Numbered 14 of 1950 (5
            U.S.C. App) and section 3145 of title 40, United States
            Code.
      [(g) Funding.--
              [(1) Mandatory funding.--
                      [(A) In general.--Subject to subparagraph
                    (B), of the funds of the Commodity Credit
                    Corporation, the Secretary shall use for the
                    cost of loan guarantees under this section, to
                    remain available until expended--
                              [(i) $100,000,000 for fiscal year
                            2014;
                              [(ii) $50,000,000 for each of fiscal
                            years 2015 and 2016;
                              [(iii) $50,000,000 for fiscal year
                            2019; and
                              [(iv) $25,000,000 for fiscal year
                            2020.
                      [(B) Biobased product manufacturing.--Of the
                    total amount of funds made available for fiscal
                    years 2014 and 2015 under subparagraph (A), the
                    Secretary may use for the cost of loan
                    guarantees under this section not more than 15
                    percent of such funds to promote biobased
                    product manufacturing.
              [(2) Discretionary funding.--In addition to any other
            funds made available to carry out this section, there.]
      (g) Funding.--There is authorized to be appropriated to carry
    out this section $75,000,000 for each of fiscal years 2014
    through [2023] 2031.
      (h) Additional Funding for Electric Loans for Renewable
    Energy.--
              (1) Appropriations.--Notwithstanding subsections (a)
            through (e), and (g), in addition to amounts otherwise
            available, there is appropriated to the Secretary for
            fiscal year 2022, out of any money in the Treasury not
            otherwise appropriated, $1,000,000,000, to remain
            available until September 30, 2031, for the cost of
            loans under section 317 of the Rural Electrification
            Act of 1936 (7 U.S.C. 940g), including for projects
            that store electricity that support the types of
            eligible projects under that section, which shall be
            forgiven in an amount that is not greater than 50
            percent of the loan based on how the borrower and the
            project meets the terms and conditions for loan
            forgiveness consistent with the purposes of that
            section established by the Secretary, except as
            provided in paragraph (3).
              (2) Limitation.--The Secretary shall not enter into
            any loan agreement pursuant this subsection that could
            result in disbursements after September 30, 2031.
              (3) Exception.--The Secretary shall establish
            criteria for waiving the 50 percent limitation
            described in paragraph (1).
      (i) Biofuel Infrastructure and Agriculture Product Market
    Expansion.--
              (1) Appropriation.--Notwithstanding subsections (a)
            through (e) and subsection (g), in addition to amounts
            otherwise available, there is appropriated to the
            Secretary for fiscal year 2022, out of any money in the
            Treasury not otherwise appropriated, $500,000,000, to
            remain available until September 30, 2031, to carry out
            this subsection.
              (2) Use of funds.--The Secretary shall use the
            amounts made available by paragraph (1) to provide
            grants, for which the Federal share shall be not more
            than 75 percent of the total cost of carrying out a
            project for which the grant is provided, on a
            competitive basis, to increase the sale and use of
            agricultural commodity-based fuels through
            infrastructure improvements for blending, storing,
            supplying, or distributing biofuels, except for
            transportation infrastructure not on location where
            such biofuels are blended, stored, supplied, or
            distributed--
                      (A) by installing, retrofitting, or otherwise
                    upgrading fuel dispensers or pumps and related
                    equipment, storage tank system components, and
                    other infrastructure required at a location
                    related to dispensing certain biofuel blends to
                    ensure the increased sales of fuels with high
                    levels of commodity-based ethanol and biodiesel
                    that are at or greater than the levels required
                    in the Notice of Funding Availability for the
                    Higher Blends Infrastructure Incentive Program
                    for Fiscal Year 2020, published in the Federal
                    Register (85 Fed. Reg. 26656), as determined by
                    the Secretary; and
                      (B) by building and retrofitting home heating
                    oil distribution centers or equivalent entities
                    and distribution systems for ethanol and
                    biodiesel blends.
      (j) USDA Assistance for Rural Electric Cooperatives.--
              (1) Appropriation.--Notwithstanding subsections (a)
            through (e) and (g), in addition to amounts otherwise
            available, there is appropriated to the Secretary for
            fiscal year 2022, out of any money in the Treasury not
            otherwise appropriated, $9,700,000,000, to remain
            available until September 30, 2031, for the long-term
            resiliency, reliability, and affordability of rural
            electric systems by providing to an eligible entity
            (defined as an electric cooperative described in
            section 501(c)(12) or 1381(a)(2) of the Internal
            Revenue Code of 1986 and is or has been a Rural
            Utilities Service electric loan borrower pursuant to
            the Rural Electrification Act of 1936 or serving a
            predominantly rural area or a wholly or jointly owned
            subsidiary of such electric cooperative) loans,
            modifications of loans, the cost of loans and
            modifications, and other financial assistance to
            achieve the greatest reduction in carbon dioxide,
            methane, and nitrous oxide emissions associated with
            rural electric systems through the purchase of
            renewable energy, renewable energy systems, zero-
            emission systems, and carbon capture and storage
            systems, to deploy such systems, or to make energy
            efficiency improvements to electric generation and
            transmission systems of the eligible entity after the
            date of enactment of this subsection.
              (2) Limitation.--No eligible entity may receive an
            amount equal to more than 10 percent of the total
            amount made available by this subsection.
              (3) Requirement.--The amount of a grant under this
            subsection shall be not more than 25 percent of the
            total project costs of the eligible entity carrying out
            a project using a grant under this subsection.
              (4) Prohibition.--Nothing in this subsection shall be
            interpreted to authorize funds of the Commodity Credit
            Corporation for activities under this subsection if
            such funds are not expressly authorized or currently
            expended for such purposes.
              (5) Disbursements.--The Secretary shall not enter
            into, pursuant to this subsection--
                      (A) any loan agreement that may result in a
                    disbursement after September 30, 2031; or
                      (B) any grant agreement that may result in
                    any outlay after September 30, 2031.

    SEC. 9004. BIOPRODUCT LABELING TERMINOLOGY.

      (a) Uniform Standards.--
              (1) In general.--Within 1 year after the date of the
            enactment of this section, the Secretary shall issue
            rules implementing national uniform labeling standards
            for, and ensuring the proper use of, the following
            terms in the labeling and marketing of bioproducts:
                      (A) Bio-attributed plastic.
                      (B) Bio-attributed product.
                      (C) Biobased plastic.
                      (D) Plant-based product.
              (2) Inclusion of certain defined terms.--In
            implementing the national uniform labeling standards
            under paragraph (1), the Secretary shall include the
            following terms, as defined in section 9001:
                      (A) Biobased product.
                      (B) Intermediate ingredient or feedstock.
                      (C) Renewable biomass.
                      (D) Renewable chemical.
      (b) Consultation.--In defining terms under subsection (a),
    the Secretary shall consult with--
              (1) biomanufacturers;
              (2) entities engaged in research and development of
            bioproducts;
              (3) feedstock growers; and
              (4) other industry stakeholders.

    SEC. 9005. BIOENERGY PROGRAM FOR ADVANCED BIOFUELS.

      (a) Definition of Eligible Producer.--In this section, the
    term ``eligible producer'' means a producer of advanced
    biofuels.
      (b) Payments.--The Secretary shall make payments to eligible
    producers to support and ensure an expanding production of
    advanced biofuels.
      (c) Contracts.--To receive a payment, an eligible producer
    shall--
              (1) enter into a contract with the Secretary for
            production of advanced biofuels; and
              (2) submit to the Secretary such records as the
            Secretary may require as evidence of the production of
            advanced biofuels.
      (d) Basis for Payments.--The Secretary shall make payments
    under this section to eligible producers based on--
              (1) the quantity and duration of production by the
            eligible producer of an advanced biofuel;
              (2) the net nonrenewable energy content of the
            advanced biofuel, if sufficient data is available, as
            determined by the Secretary; and
              (3) other appropriate factors, as determined by the
            Secretary.
      (e) Equitable Distribution.--
              (1) Amount.--The Secretary shall limit the amount of
            payments that may be received by a single eligible
            producer under this section in order to distribute the
            total amount of funding available in an equitable
            manner.
              (2) Feedstock.--The total amount of payments made in
            a fiscal year under this section to one or more
            eligible producers for the production of advanced
            biofuels derived from a single eligible commodity,
            including intermediate ingredients of that single
            commodity or use of that single commodity and its
            intermediate ingredients in combination with another
            commodity, shall not exceed one-third of the total
            amount of funds made available under subsection (g).
      (f) Other Requirements.--To receive a payment under this
    section, an eligible producer shall meet any other requirements
    of Federal and State law (including regulations) applicable to
    the production of advanced biofuels.
      (g) Funding.--
              (1) Mandatory funding.--Of the funds of the Commodity
            Credit Corporation, the Secretary shall use to carry
            out this section, to remain available until expended--
                      (A) $55,000,000 for fiscal year 2009;
                      (B) $55,000,000 for fiscal year 2010;
                      (C) $85,000,000 for fiscal year 2011;
                      (D) $105,000,000 for fiscal year 2012;
                      (E) $15,000,000 for each of fiscal years 2014
                    through 2018; and
                      (F) $7,000,000 for each of fiscal years 2019
                    through 2031.
              (2) Discretionary funding.--In addition to any other
            funds made available to carry out this section, there
            is authorized to be appropriated to carry out this
            section $20,000,000 for each of fiscal years 2019
            through [2023] 2031.
              (3) Limitation.--Of the funds provided for each
            fiscal year, not more than 5 percent of the funds shall
            be made available to eligible producers for production
            at facilities with a total refining capacity exceeding
            150,000,000 gallons per year.

    [SEC. 9006. BIODIESEL FUEL EDUCATION PROGRAM.

      [(a) Establishment.--The Secretary shall, under such terms
    and conditions as the Secretary determines to be 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
    (b), an entity shall--
              [(1) be a nonprofit organization or institution of
            higher education;
              [(2) have demonstrated knowledge of biodiesel fuel
            production, use, or distribution; and
              [(3) 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) Authorization of Appropriations.--There is authorized to
    be appropriated to carry out this section $2,000,000 for each
    of fiscal years 2019 through 2023.]

    SEC. 9007. RURAL ENERGY FOR AMERICA PROGRAM.

      (a) Establishment.--The Secretary, in consultation with the
    Secretary of Energy, shall establish a Rural Energy for America
    Program (referred to in this section as the ``Program'') to
    promote energy efficiency and renewable energy development for
    agricultural producers and rural small businesses through--
              (1) grants for energy audits and renewable energy
            development assistance; and
              (2) financial assistance for energy efficiency
            improvements and renewable energy systems.
      (b) Energy Audits and Renewable Energy Development
    Assistance.--
              (1) In general.--The Secretary shall make competitive
            grants to eligible entities to provide assistance to
            agricultural producers and rural small businesses--
                      (A) to become more energy efficient; and
                      (B) to use renewable energy technologies and
                    resources.
              (2) Eligible entities.--An eligible entity under this
            subsection is--
                      (A) a unit of State, tribal, or local
                    government;
                      (B) a land-grant college or university or
                    other institution of higher education;
                      (C) a rural electric cooperative or public
                    power entity;
                      (D) a council (as defined in section 1528 of
                    the Agriculture and Food Act of 1981 (16 U.S.C.
                    3451)); and
                      (E) any other similar entity, as determined
                    by the Secretary.
              (3) Selection criteria.--In reviewing applications of
            eligible entities to receive grants under paragraph
            (1), 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 in relation to
                    the identified need;
                      (C) the number of agricultural producers and
                    rural small businesses to be assisted by the
                    program;
                      (D) the potential of the proposed program to
                    produce energy savings, cost savings, and
                    environmental benefits;
                      (E) the plan of the eligible entity for
                    performing outreach and providing information
                    and assistance to agricultural producers and
                    rural small businesses on the benefits of
                    energy efficiency and renewable energy
                    development; [and]
                      (F) the ability of the eligible entity to
                    leverage other sources of funding[.]; and
                      (G) the potential of the proposed program to
                    meaningfully improve the financial conditions
                    of the agricultural producer or rural small
                    business.
              (4) Use of grant funds.--A recipient of a grant under
            paragraph (1) shall use the grant funds to assist
            agricultural producers and rural small businesses by--
                      (A) conducting and promoting energy audits;
                    and
                      (B) providing recommendations and information
                    on how--
                              (i) to improve the energy efficiency
                            of the operations of the agricultural
                            producers and rural small businesses;
                            and
                              (ii) to use renewable energy
                            technologies and resources in the
                            operations.
              (5) Limitation.--Grant recipients may not use more
            than 5 percent of a grant for administrative expenses.
              (6) Cost sharing.--A recipient of a grant under
            paragraph (1) that conducts an energy audit for an
            agricultural producer or rural small business under
            paragraph (4) shall require that, as a condition of the
            energy audit, the agricultural producer or rural small
            business pay at least 25 percent of the cost of the
            energy audit, which shall be retained by the eligible
            entity for the cost of the energy audit.
      (c) Financial Assistance for Energy Efficiency Improvements
    and Renewable Energy Systems.--
              (1) In general.--
                      (A) Assistance.--In addition to any similar
                    authority, the Secretary shall provide--
                              (i) loan guarantees and grants to
                            agricultural producers, agricultural
                            cooperatives with less than 2,500
                            employees, and rural small businesses--
                                      (I) to purchase renewable
                                    energy systems, including
                                    systems that may be used to
                                    produce and sell electricity;
                                    and
                                      (II) to make energy
                                    efficiency improvements; and
                              (ii) loan guarantees to agricultural
                            producers to purchase and install
                            energy efficient equipment or systems
                            for agricultural production or
                            processing that exceed--
                                      (I) energy efficiency
                                    building codes, if applicable;
                                      (II) Federal or State energy
                                    efficiency standards, if
                                    applicable; and
                                      (III) other energy efficiency
                                    standards determined
                                    appropriate by the Secretary.
                      (B) Limitations.--With respect to loan
                    guarantees under subparagraph (A)(ii)--
                              (i) if no codes or standards
                            described in such subparagraph apply to
                            the energy efficient equipment or
                            system to be purchased or installed
                            pursuant to such subparagraph, the
                            Secretary shall require, to the maximum
                            extent practicable, such equipment or
                            system to meet the same efficiency
                            measurements as the most efficient
                            available equipment or system in the
                            market; and
                              (ii) the Secretary shall not provide
                            such a loan guarantee for the purchase
                            or installation of any energy efficient
                            equipment or system unless more than
                            one type of such equipment or system is
                            available in the market.
              (2) Award considerations.--In determining the amount
            of a loan guarantee or grant provided under this
            section, 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 quantity of energy savings expected
                    to be derived from the activity, as
                    demonstrated by an energy audit;
                      (E) the estimated period of time for the
                    energy savings generated by the activity to
                    equal the cost of the activity;
                      (F) the expected energy efficiency of the
                    renewable energy system; [and]
                      (G) the potential improvements to the
                    financial conditions of the agricultural
                    producer or rural small business; and
                      [(G)] (H) other appropriate factors.
              (3) Limits.--
                      (A) Grants.--The amount of a grant under this
                    subsection shall not exceed 25 percent of the
                    cost of the activity carried out using funds
                    from the grant.
                      (B) Maximum amount of loan guarantees.--The
                    amount of a loan guaranteed under this
                    subsection shall not exceed [$25,000,000]
                    $50,000,000.
                      (C) Maximum amount of combined grant and loan
                    guarantee.--The combined amount of a grant and
                    loan guaranteed under this subsection shall not
                    exceed 75 percent of the cost of the activity
                    funded under this subsection.
                      (D) Loan guarantees for energy efficient
                    equipment to agricultural producers.--Using
                    funds made available under paragraphs (1) and
                    (3) of [subsection (f)] subsection (g), in each
                    fiscal year the Secretary may use for loan
                    guarantees under paragraph (1)(A)(ii) an amount
                    that does not exceed 15 percent of such funds.
              (4) Tiered application process.--
                      (A) In general.--In providing loan guarantees
                    and grants under this subsection, the Secretary
                    shall use a 3-tiered application process that
                    reflects the size of proposed projects in
                    accordance with this paragraph.
                      (B) Tier 1.--The Secretary shall establish a
                    separate application process for projects for
                    which the cost of the activity funded under
                    this subsection is not more than $80,000.
                      (C) Tier 2.--The Secretary shall establish a
                    separate application process for projects for
                    which the cost of the activity funded under
                    this subsection is greater than $80,000 but
                    less than $200,000.
                      (D) Tier 3.--The Secretary shall establish a
                    separate application process for projects for
                    which the cost of the activity funded under
                    this subsection is equal to or greater than
                    $200,000.
                      (E) Application process.--The Secretary shall
                    establish an application, evaluation, and
                    oversight process that is the most simplified
                    for tier I projects and more comprehensive for
                    each subsequent tier.
      (d) Streamlined Application Process.--The Secretary shall
    develop a streamlined application process, including within
    each tier described in subsection (c)(4), under which an entity
    may apply for a grant under subsection (b), financial
    assistance under subsection (c), or a bundled application for a
    project with components eligible under clauses (i) and (ii) of
    subsection (c)(1)(A).
      [(d) Outreach.--]
      (e) Outreach, Technical Assistance, and Education.--The
    Secretary shall ensure, to the maximum extent practicable,
    [that adequate] that--
              (1) adequate outreach relating to this section is
            being conducted at the State and local levels;
              (2) technical assistance is provided to entities
            seeking to apply for a grant or financial assistance
            under the Program; and
              (3) outreach, technical assistance, and education is
            provided to recipients of grants and other financial
            assistance under the Program relating to integrating
            renewable energy projects on land shared with crops or
            livestock.
      [(e)] (f) Lower-Cost Activities.--
              (1) Limitation on use of funds.--Except as provided
            in paragraph (2), the Secretary shall use not less than
            20 percent of the funds made available under
            [subsection (f)] subsection (g) to provide grants of
            $20,000 or less.
              (2) Exception.--Effective beginning on June 30 of
            each fiscal year, paragraph (1) shall not apply to
            funds made available under [subsection (f)] subsection
            (g) for the fiscal year.
      [(f)] (g) Funding.--
              (1) Mandatory funding.--Of the funds of the Commodity
            Credit Corporation, the Secretary shall use to carry
            out this section, to remain available until expended--
                      (A) $55,000,000 for fiscal year 2009;
                      (B) $60,000,000 for fiscal year 2010;
                      (C) $70,000,000 for fiscal year 2011;
                      (D) $70,000,000 for fiscal year 2012; and
                      (E) $50,000,000 for fiscal year 2014 and each
                    fiscal year thereafter.
              (2) Audit and technical assistance funding.--
                      (A) In general.--Subject to subparagraph (B),
                    of the funds made available for each fiscal
                    year under paragraph (1), 4 percent shall be
                    available to carry out subsection (b).
                      (B) Other use.--Funds not obligated under
                    subparagraph (A) by April 1 of each fiscal year
                    to carry out subsection (b) shall become
                    available to carry out subsection (c).
              (3) Discretionary funding.--In addition to any other
            funds made available to carry out this section, there
            is authorized to be appropriated to carry out this
            section $20,000,000 for each of fiscal years 2019
            through [2023] 2031.
              (4) Reserve fund.--
                      (A) In general.--Of the funds obligated under
                    paragraph (1) for each fiscal year, not less
                    than 10 percent shall be deposited in a reserve
                    fund in the Treasury and reserved for use in
                    accordance with this subparagraph.
                      (B) Use of funds.--
                              (i) In general.--The Secretary shall
                            use amounts reserved under subparagraph
                            (A) to provide grants to support
                            projects using underutilized renewable
                            energy technologies.
                              (ii) Costs.--The amount of the grant
                            for such a project shall not exceed 25
                            percent of the installation or
                            maintenance costs of the project for
                            the year in which the grant is awarded.
                      (C) Frequency of solicitations to fund.--The
                    Secretary shall carry out at least 2
                    solicitations for applications for grants from
                    the reserve fund in each fiscal year.
                      (D) Reallocation.--Any funds reserved under
                    subparagraph (A) that remain unobligated 1 year
                    after the end of the fiscal year in which made
                    available under subparagraph (A) shall be
                    reallocated to carry out the program
                    established under this section.
                      (E) Definition of underutilized renewable
                    energy technologies.--The term ``underutilized
                    renewable energy technologies'' means renewable
                    energy technologies for which have been
                    expended not more than 20 percent of the
                    average of the total amounts made available
                    under this section for the 5 fiscal years most
                    recently ending before the date of the
                    enactment of this paragraph.
      (h) Project Diversity.--In approving grant or loan guarantee
    applications under this section, the Secretary shall ensure
    that, to the extent practicable, there is diversity in the
    types of projects approved for grants or loan guarantees to
    ensure that as wide a range as possible of technologies,
    products, and approaches are assisted.

    SEC. 9008. BIOMASS RESEARCH AND DEVELOPMENT.

      (a) Definitions.--In this section:
              (1) Biobased product.--The term ``biobased product''
            means--
                      (A) an industrial product (including
                    chemicals, materials, and polymers) produced
                    from biomass;
                      (B) a commercial or industrial product
                    (including animal feed and electric power)
                    derived in connection with the conversion of
                    biomass to fuel; or
                      (C) carbon dioxide that--
                              (i) is intended for permanent
                            sequestration or utilization; and
                              (ii) is a byproduct of the production
                            of the products described in
                            subparagraphs (A) and (B).
              (2) Demonstration.--The term ``demonstration'' means
            demonstration of technology in a pilot plant or semi-
            works scale facility, including a plant or facility
            located on a farm.
              (3) Initiative.--The term ``Initiative'' means the
            Biomass Research and Development Initiative established
            under subsection (e).
      (b) Cooperation and Coordination in Biomass Research and
    Development.--
              (1) In general.--The Secretary of Agriculture and the
            Secretary of Energy shall coordinate policies and
            procedures that promote research and development
            regarding the production of biofuels and biobased
            products.
              (2) Points of contact.--To coordinate research and
            development programs and activities relating to
            biofuels and biobased products that are carried out by
            their respective departments--
                      (A) the Secretary of Agriculture shall
                    designate, as the point of contact for the
                    Department of Agriculture, an officer of the
                    Department of Agriculture appointed by the
                    President to a position in the Department
                    before the date of the designation, by and with
                    the advice and consent of the Senate; and
                      (B) the Secretary of Energy shall designate,
                    as the point of contact for the Department of
                    Energy, an officer of the Department of Energy
                    appointed by the President to a position in the
                    Department before the date of the designation,
                    by and with the advice and consent of the
                    Senate.
      (c) Biomass Research and Development Board.--
              (1) Establishment.--There is established the Biomass
            Research and Development Board to carry out the duties
            described in paragraph (3).
              (2) Membership.--The Board shall consist of--
                      (A) the point of contacts of the Department
                    of Energy and the Department of Agriculture,
                    who shall serve as cochairpersons of the Board;
                      (B) a senior officer of each of the
                    Department of the Interior, the Environmental
                    Protection Agency, the National Science
                    Foundation, and the Office of Science and
                    Technology Policy, each of whom shall have a
                    rank that is equivalent to the rank of the
                    points of contact; and
                      (C) at the option of the Secretary of
                    Agriculture and the Secretary of Energy, other
                    members appointed by the Secretaries (after
                    consultation with the Board).
              (3) Duties.--The Board shall--
                      (A) coordinate research and development
                    activities relating to biofuels and biobased
                    products--
                              (i) between the Department of
                            Agriculture and the Department of
                            Energy; and
                              (ii) with other departments and
                            agencies of the Federal Government;
                      (B) provide recommendations to the points of
                    contact concerning administration of this
                    title;
                      (C) ensure that--
                              (i) solicitations are open and
                            competitive with awards made annually;
                            and
                              (ii) objectives and evaluation
                            criteria of the solicitations are
                            clearly stated and minimally
                            prescriptive, with no areas of special
                            interest; and
                      (D) ensure that the panel of scientific and
                    technical peers assembled under subsection (e)
                    to review proposals is composed predominantly
                    of independent experts selected from outside
                    the Departments of Agriculture and Energy.
              (4) Funding.--Each agency represented on the Board is
            encouraged to provide funds for any purpose under this
            section.
              (5) Meetings.--The Board shall meet at least
            quarterly.
      (d) Biomass Research and Development Technical Advisory
    Committee.--
              (1) Establishment.--There is established the Biomass
            Research and Development Technical Advisory Committee
            to carry out the duties described in paragraph (3).
              (2) Membership.--
                      (A) In general.--The Advisory Committee shall
                    consist of--
                              (i) an individual affiliated with the
                            biofuels industry;
                              (ii) an individual affiliated with
                            the biobased industrial and commercial
                            products industry;
                              (iii) an individual affiliated with
                            an institution of higher education who
                            has expertise in biofuels and biobased
                            products;
                              (iv) 2 prominent engineers or
                            scientists from government or academia
                            who have expertise in biofuels and
                            biobased products;
                              (v) an individual affiliated with a
                            commodity trade association;
                              (vi) 2 individuals affiliated with
                            environmental or conservation
                            organizations;
                              (vii) an individual associated with
                            State government who has expertise in
                            biofuels and biobased products;
                              (viii) an individual with expertise
                            in energy and environmental analysis;
                              (ix) an individual with expertise in
                            the economics of biofuels and biobased
                            products;
                              (x) an individual with expertise in
                            agricultural economics;
                              (xi) an individual with expertise in
                            plant biology and biomass feedstock
                            development;
                              (xii) an individual with expertise in
                            agronomy, crop science, or soil
                            science;
                              (xiii) an individual with expertise
                            in carbon dioxide capture, utilization,
                            and sequestration; and
                              (xiv) at the option of the points of
                            contact, other members.
                      (B) Appointment.--The members of the Advisory
                    Committee shall be appointed by the points of
                    contact.
              (3) Duties.--The Advisory Committee shall--
                      (A) advise the points of contact with respect
                    to the Initiative; and
                      (B) evaluate and make recommendations in
                    writing to the Board regarding whether--
                              (i) funds authorized for the
                            Initiative are distributed and used in
                            a manner that is consistent with the
                            objectives, purposes, and
                            considerations of the Initiative;
                              (ii) solicitations are open and
                            competitive with awards made annually;
                              (iii) objectives and evaluation
                            criteria of the solicitations are
                            clearly stated and minimally
                            prescriptive, with no areas of special
                            interest;
                              (iv) the points of contact are
                            funding proposals under this title that
                            are selected on the basis of merit, as
                            determined by an independent panel of
                            scientific and technical peers
                            predominantly from outside the
                            Departments of Agriculture and Energy;
                            and
                              (v) activities under this title are
                            carried out in accordance with this
                            title.
              (4) Coordination.--To avoid duplication of effort,
            the Advisory Committee shall coordinate its activities
            with those of other Federal advisory committees working
            in related areas.
              (5) Meetings.--The Advisory Committee shall meet at
            least quarterly.
              (6) Terms.--Members of the Advisory Committee shall
            be appointed for a term of 3 years.
      (e) Biomass Research and Development Initiative.--
              (1) In general.--The Secretary of Agriculture and the
            Secretary of Energy, acting through their respective
            points of contact and in consultation with the Board,
            shall establish and carry out a Biomass Research and
            Development Initiative under which competitively
            awarded grants, contracts, and financial assistance are
            provided to, or entered into with, eligible entities to
            carry out research on and development and demonstration
            of--
                      (A) biofuels and biobased products; and
                      (B) the methods, practices, and technologies,
                    for the production of biofuels and biobased
                    products.
              (2) Objectives.--The objectives of the Initiative are
            to develop--
                      (A) technologies and processes necessary for
                    abundant commercial production of biofuels at
                    prices competitive with fossil fuels;
                      (B) high-value biobased products--
                              (i) to enhance the economic viability
                            of biofuels and power;
                              (ii) to serve as substitutes for
                            petroleum-based feedstocks and
                            products;
                              (iii) to enhance the value of
                            coproducts produced using the
                            technologies and processes; and
                              (iv) to permanently sequester or
                            utilize carbon dioxide described in
                            subsection (a)(1)(C); and
                      (C) a diversity of economically and
                    environmentally sustainable domestic sources of
                    renewable biomass for conversion to biofuels,
                    bioenergy, and biobased products.
              (3) Technical areas.--The Secretary of Agriculture
            and the Secretary of Energy, in consultation with the
            Administrator of the Environmental Protection Agency
            and heads of other appropriate departments and agencies
            (referred to in this subsection as the
            ``Secretaries''), shall direct the Initiative in the 3
            following areas:
                      (A) Feedstocks development.--Research,
                    development, and demonstration activities
                    regarding feedstocks and feedstock logistics
                    (including the harvest, handling, transport,
                    preprocessing, and storage) relevant to
                    production of raw materials for conversion to
                    biofuels and biobased products.
                      (B) Biofuels and biobased products
                    development.--Research, development, and
                    demonstration activities to support--
                              (i) the development of diverse cost-
                            effective technologies for the use of
                            cellulosic biomass in the production of
                            biofuels and biobased products;
                              (ii) product diversification through
                            technologies relevant to production of
                            a range of biobased products (including
                            chemicals, animal feeds, and
                            cogenerated power) that potentially can
                            increase the feasibility of fuel
                            production in a biorefinery; and
                              (iii) the development of technologies
                            to permanently sequester or utilize
                            carbon dioxide described in subsection
                            (a)(1)(C).
                      (C) Biofuels development analysis.--
                              (i) Strategic guidance.--The
                            development of analysis that provides
                            strategic guidance for the application
                            of renewable biomass technologies to
                            improve sustainability and
                            environmental quality, cost
                            effectiveness, security, and rural
                            economic development.
                              (ii) Energy and environmental
                            impact.--Development of systematic
                            evaluations of the impact of expanded
                            biofuel production on the environment
                            (including forest land) and on the food
                            supply for humans and animals,
                            including the improvement and
                            development of tools for life cycle
                            analysis of current and potential
                            biofuels.
                              (iii) Assessment of federal land.--
                            Assessments of the potential of Federal
                            land resources to increase the
                            production of feedstocks for biofuels
                            and biobased products, consistent with
                            the integrity of soil and water
                            resources and with other environmental
                            considerations.
              (4) Additional considerations.--Within the technical
            areas described in paragraph (3), the Secretaries shall
            support research and development--
                      (A) to create continuously expanding
                    opportunities for participants in existing
                    biofuels production by seeking synergies and
                    continuity with current technologies and
                    practices;
                      (B) to maximize the environmental, economic,
                    and social benefits of production of biofuels
                    and derived biobased products on a large scale;
                    and
                      (C) to facilitate small-scale production and
                    local and on-farm use of biofuels, including
                    the development of small-scale gasification
                    technologies for production of biofuel from
                    cellulosic feedstocks.
              (5) Eligibility.--To be eligible for a grant,
            contract, or assistance under this section, an
            applicant shall be--
                      (A) an institution of higher education;
                      (B) a National Laboratory;
                      (C) a Federal research agency;
                      (D) a State research agency;
                      (E) a private sector entity;
                      (F) a nonprofit organization; or
                      (G) a consortium of 2 or more entities
                    described in subparagraphs (A) through (F).
              (6) Administration.--
                      (A) In general.--After consultation with the
                    Board, the points of contact shall--
                              (i) publish annually 1 or more joint
                            requests for proposals for grants,
                            contracts, and assistance under this
                            subsection;
                              (ii) require that grants, contracts,
                            and assistance under this section be
                            awarded based on a scientific peer
                            review by an independent panel of
                            scientific and technical peers;
                              (iii) give special consideration to
                            applications that--
                                      (I) involve a consortia of
                                    experts from multiple
                                    institutions;
                                      (II) encourage the
                                    integration of disciplines and
                                    application of the best
                                    technical resources; and
                                      (III) increase the geographic
                                    diversity of demonstration
                                    projects; and
                              (iv) require that the technical areas
                            described in each of subparagraphs (A),
                            (B), and (C) of paragraph (3) receive
                            not less than 15 percent of funds made
                            available to carry out this section.
                      (B) Cost share.--
                              (i) Research and development
                            projects.--
                                      (I) In general.--Except as
                                    provided in subclause (II), the
                                    non-Federal share of the cost
                                    of a research or development
                                    project under this section
                                    shall be not less than 20
                                    percent.
                                      (II) Reduction.--The
                                    Secretary of Agriculture or the
                                    Secretary of Energy, as
                                    appropriate, may reduce the
                                    non-Federal share required
                                    under subclause (I) if the
                                    appropriate Secretary
                                    determines the reduction to be
                                    necessary and appropriate.
                              (ii) Demonstration and commercial
                            projects.--The non-Federal share of the
                            cost of a demonstration or commercial
                            project under this section shall be not
                            less than 50 percent.
                      (C) Technology and information transfer.--The
                    Secretary of Agriculture and the Secretary of
                    Energy shall ensure that applicable research
                    results and technologies from the Initiative
                    are--
                              (i) adapted, made available, and
                            disseminated, as appropriate; and
                              (ii) included in the best practices
                            database established under section
                            1672C(e) of the Food, Agriculture,
                            Conservation, and Trade Act of 1990.
      (f) Administrative Support and Funds.--
              (1) In general.--The Secretary of Energy and the
            Secretary of Agriculture may provide such
            administrative support and funds of the Department of
            Energy and the Department of Agriculture to the Board
            and the Advisory Committee as are necessary to enable
            the Board and the Advisory Committee to carry out their
            duties under this section.
              (2) Other agencies.--The heads of the agencies
            referred to in subsection (c)(2)(B), and the other
            members of the Board appointed under subsection
            (c)(2)(C), are encouraged to provide administrative
            support and funds of their respective agencies to the
            Board and the Advisory Committee.
              (3) Limitation.--Not more than 4 percent of the
            amount made available for each fiscal year under
            subsection (h) may be used to pay the administrative
            costs of carrying out this section.
      (g) Reports.--For each fiscal year for which funds are made
    available to carry out this section, the Secretary of Energy
    and the Secretary of Agriculture shall jointly submit to
    Congress a detailed report on--
              (1) the status and progress of the Initiative,
            including a report from the Advisory Committee on
            whether funds appropriated for the Initiative have been
            distributed and used in a manner that is consistent
            with the objectives and requirements of this section;
              (2) the general status of cooperation and research
            and development efforts carried out at each agency with
            respect to biofuels and biobased products; and
              (3) the plans of the Secretary of Energy and the
            Secretary of Agriculture for addressing concerns raised
            in the report, including concerns raised by the
            Advisory Committee.
      (h) Funding.--
              (1) Mandatory funding.--Of the funds of the Commodity
            Credit Corporation, the Secretary of Agriculture shall
            use to carry out this section, to remain available
            until expended--
                      (A) $20,000,000 for fiscal year 2009;
                      (B) $28,000,000 for fiscal year 2010;
                      (C) $30,000,000 for fiscal year 2011;
                      (D) $40,000,000 for fiscal year 2012; and
                      (E) $3,000,000 for each of fiscal years 2014
                    through 2017.
              (2) Discretionary funding.--In addition to any other
            funds made available to carry out this section, there
            is authorized to be appropriated to carry out this
            section $20,000,000 for each of fiscal years 2014
            through [2023] 2031.

    SEC. 9010. FEEDSTOCK FLEXIBILITY PROGRAM FOR BIOENERGY PRODUCERS.

      (a) Definitions.--In this section:
              (1) Bioenergy.--The term ``bioenergy'' means fuel
            grade ethanol and other biofuel.
              (2) Bioenergy producer.--The term ``bioenergy
            producer'' means a producer of bioenergy that uses an
            eligible commodity to produce bioenergy under this
            section.
              (3) Eligible commodity.--The term ``eligible
            commodity'' means a form of raw or refined sugar or in-
            process sugar that is eligible to be marketed in the
            United States for human consumption or to be used for
            the extraction of sugar for human consumption.
              (4) Eligible entity.--The term ``eligible entity''
            means an entity located in the United States that
            markets an eligible commodity in the United States.
      (b) Feedstock Flexibility Program.--
              (1) In general.--
                      (A) Purchases and sales.--For each of the
                    2008 through [2026] 2031 crops, the Secretary
                    shall purchase eligible commodities from
                    eligible entities and sell such commodities to
                    bioenergy producers for the purpose of
                    producing bioenergy in a manner that ensures
                    that section 156 of the Federal Agriculture
                    Improvement and Reform Act (7 U.S.C. 7272) is
                    operated at no cost to the Federal Government
                    by avoiding forfeitures to the Commodity Credit
                    Corporation.
                      (B) Competitive procedures.--In carrying out
                    the purchases and sales required under
                    subparagraph (A), the Secretary shall, to the
                    maximum extent practicable, use competitive
                    procedures, including the receiving, offering,
                    and accepting of bids, when entering into
                    contracts with eligible entities and bioenergy
                    producers, provided that such procedures are
                    consistent with the purposes of subparagraph
                    (A).
                      (C) Limitation.--The purchase and sale of
                    eligible commodities under subparagraph (A)
                    shall only be made in crop years in which such
                    purchases and sales are necessary to ensure
                    that the program authorized under section 156
                    of the Federal Agriculture Improvement and
                    Reform Act (7 U.S.C. 7272) is operated at no
                    cost to the Federal Government by avoiding
                    forfeitures to the Commodity Credit
                    Corporation.
              (2) Notice.--
                      (A) In general.--As soon as practicable after
                    the date of enactment of the Food,
                    Conservation, and Energy Act of 2008 and each
                    September 1 thereafter through September 1,
                    [2026] 2031, the Secretary shall provide notice
                    to eligible entities and bioenergy producers of
                    the quantity of eligible commodities that shall
                    be made available for purchase and sale for the
                    crop year following the date of the notice
                    under this section.
                      (B) Reestimates.--Not later than the January
                    1, April 1, and July 1 of the calendar year
                    following the date of a notice under
                    subparagraph (A), the Secretary shall
                    reestimate the quantity of eligible commodities
                    determined under subparagraph (A), and provide
                    notice and make purchases and sales based on
                    such reestimates.
              (3) Commodity credit corporation inventory.--
                      (A) Dispositions.--
                              (i) Bioenergy and generally.--Except
                            as provided in clause (ii), to the
                            extent that an eligible commodity is
                            owned and held in inventory by the
                            Commodity Credit Corporation
                            (accumulated pursuant to the program
                            authorized under section 156 of the
                            Federal Agriculture Improvement and
                            Reform Act (7 U.S.C. 7272)), the
                            Secretary shall--
                                      (I) sell the eligible
                                    commodity to bioenergy
                                    producers under this section
                                    consistent with paragraph
                                    (1)(C);
                                      (II) dispose of the eligible
                                    commodity in accordance with
                                    section 156(f)(2) of that Act;
                                    or
                                      (III) otherwise dispose of
                                    the eligible commodity through
                                    the buyback of certificates of
                                    quota entry.
                              (ii) Preservation of other
                            authorities.--Nothing in this section
                            limits the use of other authorities for
                            the disposition of an eligible
                            commodity held in the inventory of the
                            Commodity Credit Corporation for
                            nonfood use or otherwise in a manner
                            that does not increase the net quantity
                            of sugar available for human
                            consumption in the United States
                            market, consistent with section
                            156(f)(1) of the Federal Agriculture
                            Improvement and Reform Act (7 U.S.C.
                            7272(f)(1)).
                      (B) Emergency shortages.--Notwithstanding
                    subparagraph (A), if there is an emergency
                    shortage of sugar for human consumption in the
                    United States market that is caused by a war,
                    flood, hurricane, or other natural disaster, or
                    other similar event, the Secretary may dispose
                    of an eligible commodity that is owned and held
                    in inventory by the Commodity Credit
                    Corporation (accumulated pursuant to the
                    program authorized under section 156 of the
                    Federal Agriculture Improvement and Reform Act
                    (7 U.S.C. 7272)) through disposition as
                    authorized under section 156(f) of that Act or
                    through the use of any other authority of the
                    Commodity Credit Corporation.
              (4) Transfer rule; storage fees.--
                      (A) General transfer rule.--Except with
                    regard to emergency dispositions under
                    paragraph (3)(B) and as provided in
                    subparagraph (C), the Secretary shall ensure
                    that bioenergy producers that purchase eligible
                    commodities pursuant to this section take
                    possession of the eligible commodities within
                    30 calendar days of the date of such purchase
                    from the Commodity Credit Corporation.
                      (B) Payment of storage fees prohibited.--
                              (i) In general.--The Secretary shall,
                            to the maximum extent practicable,
                            carry out this section in a manner that
                            ensures no storage fees are paid by the
                            Commodity Credit Corporation in the
                            administration of this section.
                              (ii) Exception.--Clause (i) shall not
                            apply with respect to any commodities
                            owned and held in inventory by the
                            Commodity Credit Corporation
                            (accumulated pursuant to the program
                            authorized under section 156 of the
                            Federal Agriculture Improvement and
                            Reform Act (7 U.S.C. 7272)).
                      (C) Option to prevent storage fees.--
                              (i) In general.--The Secretary may
                            enter into contracts with bioenergy
                            producers to sell eligible commodities
                            to such producers prior in time to
                            entering into contracts with eligible
                            entities to purchase the eligible
                            commodities to be used to satisfy the
                            contracts entered into with the
                            bioenergy producers.
                              (ii) Special transfer rule.--If the
                            Secretary makes a sale and purchase
                            referred to in clause (i), the
                            Secretary shall ensure that the
                            bioenergy producer that purchased
                            eligible commodities takes possession
                            of such commodities within 30 calendar
                            days of the date the Commodity Credit
                            Corporation purchases the eligible
                            commodities.
              (5) Relation to other laws.--If sugar that is subject
            to a marketing allotment under part VII of subtitle B
            of title III of the Agricultural Adjustment Act of 1938
            (7 U.S.C. 1359aa et seq.) is the subject of a payment
            under this section, the sugar shall be considered
            marketed and shall count against a processor's
            allocation of an allotment under such part, as
            applicable.
              (6) Funding.--The Secretary shall use the funds,
            facilities, and authorities of the Commodity Credit
            Corporation, including the use of such sums as are
            necessary, to carry out this section.

    SEC. 9011. BIOMASS CROP ASSISTANCE PROGRAM.

      (a) Definitions.--In this section:
              (1) BCAP.--The term ``BCAP'' means the Biomass Crop
            Assistance Program established under this section.
              (2) BCAP project area.--The term ``BCAP project
            area'' means an area that--
                      (A) has specified boundaries that are
                    submitted to the Secretary by the project
                    sponsor and subsequently approved by the
                    Secretary;
                      (B) includes producers with contract acreage
                    that will supply a portion of the renewable
                    biomass needed by a biomass conversion
                    facility; and
                      (C) is physically located within an
                    economically practicable distance from the
                    biomass conversion facility.
              (3) Contract acreage.--The term ``contract acreage''
            means eligible land that is covered by a BCAP contract
            entered into with the Secretary.
              (4) Eligible crop.--
                      (A) In general.--The term ``eligible crop''
                    means a crop of renewable biomass.
                      (B) Exclusions.--The term ``eligible crop''
                    does not include--
                              (i) any crop that is eligible to
                            receive payments under title I of the
                            Agricultural Act of 2014 or an
                            amendment made by that title; or
                              (ii) any plant that is invasive or
                            noxious or species or varieties of
                            plants that credible risk assessment
                            tools or other credible sources
                            determine are potentially invasive, as
                            determined by the Secretary in
                            consultation with other appropriate
                            Federal or State departments and
                            agencies.
              (5) Eligible land.--
                      (A) In general.--The term ``eligible land''
                    includes--
                              (i) agricultural and nonindustrial
                            private forest lands (as defined in
                            section 5(c) of the Cooperative
                            Forestry Assistance Act of 1978 (16
                            U.S.C. 2103a(c)); and
                              (ii) land enrolled in the
                            conservation reserve program
                            established under subchapter B of
                            chapter I of subtitle D of title XII of
                            the Food Security Act of 1985 (16
                            U.S.C. 3831 et seq.), or the
                            Agricultural Conservation Easement
                            Program established under subtitle H of
                            title XII of that Act, under a contract
                            that will expire at the end of the
                            current fiscal year.
                      (B) Exclusions.--The term ``eligible land''
                    does not include--
                              (i) Federal- or State-owned land;
                              (ii) land that is native sod, as of
                            the date of enactment of the Food,
                            Conservation, and Energy Act of 2008 (7
                            U.S.C. 8701 et seq.);
                              (iii) land enrolled in the
                            conservation reserve program
                            established under subchapter B of
                            chapter 1 of subtitle D of title XII of
                            the Food Security Act of 1985 (16
                            U.S.C. 3831 et seq.), other than land
                            described in subparagraph (A)(ii); or
                              (iv) land enrolled in the
                            Agricultural Conservation Easement
                            Program established under subtitle H of
                            title XII of that Act, other than land
                            described in subparagraph (A)(ii).
              (6) Eligible material.--
                      (A) In general.--The term ``eligible
                    material'' means renewable biomass harvested
                    directly from the land, including crop residue
                    from any crop that is eligible to receive
                    payments under title I of the Agricultural Act
                    of 2014 or an amendment made by that title.
                      (B) Inclusions.--The term ``eligible
                    material'' shall only include--
                              (i) eligible material that is
                            collected or harvested by the eligible
                            material owner--
                                      (I) directly from--
                                              (aa) National Forest
                                            System;
                                              (bb) Bureau of Land
                                            Management land;
                                              (cc) non-Federal
                                            land; or
                                              (dd) land owned by an
                                            individual Indian or
                                            Indian tribe that is
                                            held in trust by the
                                            United States for the
                                            benefit of the
                                            individual Indian or
                                            Indian tribe or subject
                                            to a restriction
                                            against alienation
                                            imposed by the United
                                            States;
                                      (II) in a manner that is
                                    consistent with--
                                              (aa) a conservation
                                            plan;
                                              (bb) a forest
                                            stewardship plan; or
                                              (cc) a plan that the
                                            Secretary determines is
                                            equivalent to a plan
                                            described in item (aa)
                                            or (bb) and consistent
                                            with Executive Order
                                            13112 (42 U.S.C. 4321
                                            note; relating to
                                            invasive species);
                              (ii) if woody eligible material,
                            woody eligible material that is
                            produced on land other than contract
                            acreage that--
                                      (I) is a byproduct of a
                                    preventative treatment that is
                                    removed to reduce hazardous
                                    fuel or to reduce or contain
                                    disease or insect infestation;
                                    and
                                      (II) if harvested from
                                    Federal land, is harvested in
                                    accordance with section 102(e)
                                    of the Healthy Forests
                                    Restoration Act of 2003 (16
                                    U.S.C. 6512(e));
                              (iii) eligible material that is
                            delivered to a qualified biomass
                            conversion facility to be used for
                            heat, power, biobased products,
                            research, or advanced biofuels; and
                              (iv) algae.
                      (C) Exclusions.--The term ``eligible
                    material'' does not include--
                              (i) material that is whole grain from
                            any crop that is eligible to receive
                            payments under title I of the
                            Agricultural Act of 2014 or an
                            amendment made by that title,
                            including--
                                      (I) barley, corn, grain
                                    sorghum, oats, rice, or wheat;
                                      (II) honey;
                                      (III) mohair;
                                      (IV) oilseeds, including
                                    canola, crambe, flaxseed,
                                    mustard seed, rapeseed,
                                    safflower seed, soybeans,
                                    sesame seed, and sunflower
                                    seed;
                                      (V) peanuts;
                                      (VI) pulse;
                                      (VII) chickpeas, lentils, and
                                    dry peas;
                                      (VIII) dairy products;
                                      (IX) sugar; and
                                      (X) wool and cotton boll
                                    fiber;
                              (ii) animal waste and byproducts,
                            including fat, oil, grease, and manure;
                              (iii) food waste and yard waste;
                              (iv) woody eligible material that--
                                      (I) is removed outside
                                    contract acreage; and
                                      (II) is not a byproduct of a
                                    preventative treatment to
                                    reduce hazardous fuel or to
                                    reduce or contain disease or
                                    insect infestation;
                              (v) any woody eligible material
                            collected or harvested outside contract
                            acreage that would otherwise be used
                            for existing market products; or
                              (vi) bagasse.
              (7) Producer.--The term ``producer'' means an owner
            or operator of contract acreage that is physically
            located within a BCAP project area.
              (8) Project sponsor.--The term ``project sponsor''
            means--
                      (A) a group of producers; or
                      (B) a biomass conversion facility.
              (9) Socially disadvantaged farmer or rancher.--The
            term ``socially disadvantaged farmer or rancher'' has
            the meaning given the term in section 2501(e) of the
            Food, Agriculture, Conservation, and Trade Act of 1990
            (7 U.S.C. 2279(e)).
      (b) Establishment and Purpose.--The Secretary shall establish
    and administer a Biomass Crop Assistance Program to--
              (1) support the establishment and production of
            eligible crops for conversion to bioenergy in selected
            BCAP project areas; and
              (2) assist agricultural and forest land owners and
            operators with the collection, harvest, storage, and
            transportation of eligible material for use in a
            biomass conversion facility.
      (c) BCAP Project Area.--
              (1) In general.--The Secretary shall provide
            financial assistance to a producer of an eligible crop
            in a BCAP project area.
              (2) Selection of project areas.--
                      (A) In general.--To be considered for
                    selection as a BCAP project area, a project
                    sponsor shall submit to the Secretary a
                    proposal that, at a minimum, includes--
                              (i) a description of the eligible
                            land and eligible crops of each
                            producer that will participate in the
                            proposed BCAP project area;
                              (ii) a letter of commitment from a
                            biomass conversion facility that the
                            facility will use the eligible crops
                            intended to be produced in the proposed
                            BCAP project area;
                              (iii) evidence that the biomass
                            conversion facility has sufficient
                            equity available, as determined by the
                            Secretary, if the biomass conversion
                            facility is not operational at the time
                            the proposal is submitted to the
                            Secretary; and
                              (iv) any other information about the
                            biomass conversion facility or proposed
                            biomass conversion facility that the
                            Secretary determines necessary for the
                            Secretary to be reasonably assured that
                            the plant will be in operation by the
                            date on which the eligible crops are
                            ready for harvest.
                      (B) BCAP project area selection criteria.--In
                    selecting BCAP project areas, the Secretary
                    shall consider--
                              (i) the volume of the eligible crops
                            proposed to be produced in the proposed
                            BCAP project area and the probability
                            that those crops will be used for the
                            purposes of the BCAP;
                              (ii) the volume of renewable biomass
                            projected to be available from sources
                            other than the eligible crops grown on
                            contract acres;
                              (iii) the anticipated economic impact
                            in the proposed BCAP project area;
                              (iv) the opportunity for producers
                            and local investors to participate in
                            the ownership of the biomass conversion
                            facility in the proposed BCAP project
                            area;
                              (v) the participation rate by--
                                      (I) beginning farmers or
                                    ranchers (as defined in
                                    accordance with section 343(a)
                                    of the Consolidated Farm and
                                    Rural Development Act (7 U.S.C.
                                    1991(a))); or
                                      (II) socially disadvantaged
                                    farmers or ranchers;
                              (vi) the impact on soil, water, and
                            related resources;
                              (vii) the variety in biomass
                            production approaches within a project
                            area, including (as appropriate)--
                                      (I) agronomic conditions;
                                      (II) harvest and postharvest
                                    practices; and
                                      (III) monoculture and
                                    polyculture crop mixes;
                              (viii) the range of eligible crops
                            among project areas;
                              (ix) existing project areas that have
                            received funding under this section and
                            the continuation of funding of such
                            project areas to advance the maturity
                            of such project areas; and
                              (x) any additional information that
                            the Secretary determines to be
                            necessary.
              (3) Contract.--
                      (A) In general.--On approval of a BCAP
                    project area by the Secretary, each producer in
                    the BCAP project area shall enter into a
                    contract directly with the Secretary.
                      (B) Minimum terms.--At a minimum, a contract
                    under this subsection shall include terms that
                    cover--
                              (i) an agreement to make available to
                            the Secretary, or to an institution of
                            higher education or other entity
                            designated by the Secretary, such
                            information as the Secretary considers
                            to be appropriate to promote the
                            production of eligible crops and the
                            development of biomass conversion
                            technology;
                              (ii) compliance with the highly
                            erodible land conservation requirements
                            of subtitle B of title XII of the Food
                            Security Act of 1985 (16 U.S.C. 3811 et
                            seq.) and the wetland conservation
                            requirements of subtitle C of title XII
                            of that Act (16 U.S.C. 3821 et seq.);
                              (iii) the implementation of (as
                            determined by the Secretary)--
                                      (I) a conservation plan;
                                      (II) a forest stewardship
                                    plan; or
                                      (III) a plan that is
                                    equivalent to a conservation or
                                    forest stewardship plan; and
                              (iv) any additional requirements that
                            Secretary determines to be necessary.
                      (C) Duration.--A contract under this
                    subsection shall have a term of not more than--
                              (i) 5 years for annual and perennial
                            crops; or
                              (ii) 15 years for woody biomass.
              (4) Relationship to other programs.--In carrying out
            this subsection, the Secretary shall provide for the
            preservation of cropland base and yield history
            applicable to the land enrolled in a BCAP contract.
              (5) Payments.--
                      (A) In general.--The Secretary shall make
                    establishment and annual payments directly to
                    producers to support the establishment and
                    production of eligible crops on contract
                    acreage.
                      (B) Amount of establishment payments.--
                              (i) In general.--Subject to clause
                            (ii), the amount of an establishment
                            payment under this subsection shall be
                            not more than 50 percent of the costs
                            of establishing an eligible perennial
                            crop covered by the contract but not to
                            exceed $500 per acre, including--
                                      (I) the cost of seeds and
                                    stock for perennials;
                                      (II) the cost of planting the
                                    perennial crop, as determined
                                    by the Secretary; and
                                      (III) in the case of
                                    nonindustrial private
                                    forestland, the costs of site
                                    preparation and tree planting.
                              (ii) Socially disadvantaged farmers
                            or ranchers.--In the case of socially
                            disadvantaged farmers or ranchers, the
                            costs of establishment may not exceed
                            $750 per acre.
                      (C) Amount of annual payments.--
                              (i) In general.--Subject to clause
                            (ii), the amount of an annual payment
                            under this subsection shall be
                            determined by the Secretary.
                              (ii) Reduction.--The Secretary shall
                            reduce an annual payment by an amount
                            determined to be appropriate by the
                            Secretary, if--
                                      (I) an eligible crop is used
                                    for purposes other than the
                                    production of energy at the
                                    biomass conversion facility;
                                      (II) an eligible crop is
                                    delivered to the biomass
                                    conversion facility;
                                      (III) the producer receives a
                                    payment under subsection (d);
                                      (IV) the producer violates a
                                    term of the contract; or
                                      (V) the Secretary determines
                                    a reduction is necessary to
                                    carry out this section.
                      (D) Exclusion.--The Secretary shall not make
                    any BCAP payments on land for which payments
                    are received under 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.) or the agricultural conservation easement
                    program established under subtitle H of title
                    XII of that Act.
      (d) Assistance with Collection, Harvest, Storage, and
    Transportation.--
              (1) In general.--The Secretary shall make a payment
            for the delivery of eligible material to a biomass
            conversion facility to--
                      (A) a producer of an eligible crop that is
                    produced on BCAP contract acreage; or
                      (B) a person with the right to collect or
                    harvest eligible material, regardless of
                    whether the eligible material is produced on
                    contract acreage.
              (2) Payments.--
                      (A) Costs covered.--A payment under this
                    subsection shall be in an amount described in
                    subparagraph (B) for--
                              (i) collection;
                              (ii) harvest;
                              (iii) storage; and
                              (iv) transportation to a biomass
                            conversion facility.
                      (B) Amount.--Subject to paragraph (3), the
                    Secretary may provide matching payments at a
                    rate of up to $1 for each $1 per ton provided
                    by the biomass conversion facility, in an
                    amount not to exceed $20 per dry ton for a
                    period of 2 years.
              (3) Limitation on assistance for bcap contract
            acreage.--As a condition of the receipt of an annual
            payment under subsection (c), a producer receiving a
            payment under this subsection for collection, harvest,
            storage, or transportation of an eligible crop produced
            on BCAP acreage shall agree to a reduction in the
            annual payment.
      (e) Report.--Not later than 4 years after the date of
    enactment of the Agricultural Act of 2014, 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 dissemination by the
    Secretary of the best practice data and information gathered
    from participants receiving assistance under this section.
      (f) Funding.--
              (1) Authorization of appropriations.--There is
            authorized to be appropriated to carry out this section
            $25,000,000 for each of fiscal years 2019 through
            [2023] 2031.
              (2) Collection, harvest, storage, and transportation
            payments.--Of the amount made available under paragraph
            (1) for each fiscal year, the Secretary shall use not
            less than 10 percent, nor more than 50 percent, of the
            amount to make collection, harvest, transportation, and
            storage payments under subsection (d)(2).
              (3) Technical assistance.--Effective for fiscal year
            2014 and each subsequent fiscal year, funds made
            available under this subsection shall be available for
            the provision of technical assistance with respect to
            activities authorized under this section.

    SEC. 9013. [COMMUNITY WOOD ENERGY AND WOOD INNOVATION PROGRAM]
                        COMMUNITY WOOD FACILITIES PROGRAM.

      (a) Definitions.--In this section:
              (1) Community wood energy system.--
                      (A) In general.--The term ``community wood
                    energy system'' means an energy system that--
                              (i) produces thermal energy or
                            combined thermal energy and electricity
                            where thermal is the primary energy
                            output;
                              (ii) services public facilities owned
                            or operated by State or local
                            governments (including schools, town
                            halls, libraries, and other public
                            buildings) or private or nonprofit
                            facilities (including commercial and
                            business facilities, such as hospitals,
                            office buildings, apartment buildings,
                            and manufacturing and industrial
                            buildings); and
                              (iii) uses [woody biomass, including
                            residuals] primarily forest biomass,
                            including processing or manufacturing
                            residuals--
                                      (I) that have not been
                                    adulterated with glue or other
                                    chemical treatments from wood
                                    processing facilities, as the
                                    primary fuel; and
                                      (II) for which the use of
                                    that biomass for energy
                                    production does not cause
                                    conversion of forests to
                                    nonforest use.
                      (B) Inclusions.--The term ``community wood
                    energy system'' includes single-facility
                    central heating, district heating systems
                    serving multiple buildings, combined heat and
                    electric systems where thermal energy is the
                    primary energy output, and other related
                    biomass energy systems.
              (2) Innovative wood product facility.--The term
            ``innovative wood product facility'' means a
            manufacturing or processing plant or mill that
            produces--
                      (A) building components or systems that use
                    large panelized wood construction, including
                    mass timber;
                      (B) wood products derived from nanotechnology
                    or other new technology processes, as
                    determined by the Secretary; or
                      (C) other innovative wood products that use
                    low-value, low-quality wood, as determined by
                    the Secretary.
              (3) Mass timber.--The term ``mass timber'' includes--
                      (A) cross-laminated timber;
                      (B) nail-laminated timber;
                      (C) glue-laminated timber;
                      (D) laminated strand lumber; and
                      (E) laminated veneer lumber.
              (4) Program.--The term ``Program'' means the
            [Community Wood Energy and Wood Innovation Program]
            Community Wood Facilities Program established under
            subsection (b).
      (b) Competitive Grant Program.--The Secretary, acting through
    the Chief of the Forest Service, shall establish a competitive
    grant program [to be known as the ``Community Wood Energy and
    Wood Innovation Program''.] to be known as the ``Community Wood
    Facilities Program''.
      (c) Matching Grants.--
              (1) In general.--Under the Program, the Secretary
            shall make grants to cover not more than 35 percent of
            the capital cost for installing a community wood energy
            system or building an innovative wood product facility.
              (2) Special circumstances.--The Secretary may
            establish special circumstances, such as in the case of
            a community wood energy system project or innovative
            wood product facility project involving a school or
            hospital in a low-income community, under which grants
            under the Program may cover up to 50 percent of the
            capital cost.
              (3) Source of matching funds.--Matching funds
            required pursuant to this subsection from a grant
            recipient shall be derived from non-Federal funds.
      (d) Project Cap.--The total amount of grants under the
    Program for a community wood energy system project or
    innovative wood product facility project may not exceed
    $5,000,000. [exceed--]
              [(1) in the case of grants under the general
            authority provided under subsection (c)(1), $1,000,000;
            and
              [(2) in the case of grants for which the special
            circumstances apply under subsection (c)(2),
            $1,500,000.]
      (e) Selection Criteria.--In selecting applicants for grants
    under the Program, the Secretary shall consider the following:
              [(1) The energy efficiency of the proposed community
            wood energy system or innovative wood product
            facility.]
              [(2)] (1) The cost effectiveness or market
            competitiveness of the proposed community wood energy
            system or innovative wood product facility.
              [(3)] (2) The extent to which the proposed community
            wood energy system or innovative wood product facility
            represents the best available commercial technology.
              [(4)] (3) The extent to which the proposed community
            wood energy system uses the most stringent control
            technology that has been required or achieved in
            practice for a wood-fired boiler of similar size and
            type.
              [(5)] (4)(A) The extent to which the proposed
            community wood energy system will displace conventional
            fossil fuel generation.
              (B) Whether the proposed community wood energy system
            minimizes emission increases to the greatest extent
            possible.
              [(6)] (5) The extent to which the proposed community
            wood energy system will increase delivered thermal
            efficiency of the systems replaced.
              [(7)] (6) The extent to which the applicant has
            demonstrated a high likelihood of project success by
            completing detailed engineering and design work in
            advance of the grant application.
              [(8)] (7) Other technical, economic, conservation,
            and environmental criteria that the Secretary considers
            appropriate.
      (f) Grant Priorities.--In selecting applicants for grants
    under the Program, the Secretary shall give priority to
    proposals that use the most stringent control technology that
    has been required or achieved in practice for a wood-fired
    boiler and--
              (1) would be carried out in a location where markets
            are needed for the low-value, low-quality wood;
              [(2) would be carried out in a location with limited
            access to natural gas pipelines;]
              [(3)] (2) would include the [use or retrofitting (or
            both) of existing sawmill] construction, use or
            retrofitting of forest products manufacturing
            facilities located in a location where the average
            annual unemployment rate exceeded the national average
            unemployment rate by more than 1 percent during the
            previous calendar year; or
              [(4)] (3) would be carried out in a location where
            the project will aid with forest restoration.
      (g) Limitations.--
              (1) Capacity of community wood energy systems.--A
            community wood energy system acquired with grant funds
            under the Program shall not exceed nameplate capacity
            of [5 megawatts of thermal energy or combined thermal
            and electric energy] 15 megawatts of thermal energy or
            combined thermal and electric energy.
              (2) Funding for innovative wood product facilities.--
            Not more than [25 percent] 50 percent of funds provided
            as grants under the Program for a fiscal year may go to
            applicants proposing innovative wood product
            facilities, unless the Secretary has received an
            insufficient number of qualified proposals for
            community wood energy systems.
      (h) Funding.--There is authorized to be appropriated to carry
    out the Program $25,000,000 for each of fiscal years 2019
    through [2023] 2031.

    [SEC. 9014. CARBON UTILIZATION AND BIOGAS EDUCATION PROGRAM.

      [(a) Definitions.--In this section:
              [(1) Carbon dioxide.--The term ``carbon dioxide''
            means carbon dioxide that is produced as a byproduct of
            the production of a biobased product.
              [(2) Eligible entity.--The term ``eligible entity''
            means an entity that--
                      [(A) is--
                              [(i) an organization described in
                            section 501(c)(3) of the Internal
                            Revenue Code of 1986 and exempt from
                            taxation under section 501(a) of that
                            Code; or
                              [(ii) an institution of higher
                            education (as defined in section 101(a)
                            of the Higher Education Act of 1965 (20
                            U.S.C. 1001(a)));
                      [(B) has demonstrated knowledge about--
                              [(i) sequestration and utilization of
                            carbon dioxide; or
                              [(ii) aggregation of organic waste
                            from multiple sources into a single
                            biogas system; and
                      [(C) has a demonstrated ability to conduct
                    educational and technical support programs.
      [(b) Establishment.--The Secretary, in consultation with the
    Secretary of Energy, shall make competitive grants to eligible
    entities--
              [(1) to provide education to the public about the
            economic and emissions benefits of permanent
            sequestration or utilization of carbon dioxide with a
            primary objective of providing benefits and
            opportunities for rural businesses, rural communities,
            and utilities serving rural communities; or
              [(2) to provide education to agricultural producers
            and other stakeholders about opportunities for
            aggregation of organic waste from multiple sources into
            a single biogas system.
      [(c) Funding.--There are authorized to be appropriated for
    each of fiscal years 2019 through 2023--
              [(1) $1,000,000 to carry out subsection (b)(1); and
              [(2) $1,000,000 to carry out subsection (b)(2).]

    SEC. 9014. STUDY ON EFFECTS OF SOLAR PANEL INSTALLATIONS ON COVERED
                        FARMLAND.

      (a) In General.--The Secretary, in consultation with the
    Secretary of Energy, shall conduct a study on the effects of
    solar panel installations on the conversion of covered farmland
    out of agricultural production in accordance with this section.
      (b) Content.--In conducting the study under this section, the
    Secretary shall--
              (1) analyze the economic effects of solar panel
            installations on covered farmland, including the
            effects on--
                      (A) crop yields;
                      (B) land values, including adjacent
                    properties;
                      (C) land access and tenure;
                      (D) local economies; and
                      (E) food security;
              (2) investigate impacts of solar panel installation,
            operation, and decommissioning on covered farmland, and
            suggest best practices to protect--
                      (A) soil health;
                      (B) water resources;
                      (C) wildlife;
                      (D) vegetation;
                      (E) water drainage; and
                      (F) air quality;
              (3) assess the impacts of shared solar energy and
            agricultural production on covered farmland, including
            best practices to--
                      (A) maintain or increase agricultural
                    production;
                      (B) increase agricultural resilience;
                      (C) retain covered farmland;
                      (D) increase economic opportunities in
                    farming and rural communities, including new
                    revenue streams and job creation;
                      (E) reduce nonfarmer ownership of covered
                    farmland; and
                      (F) enhance biodiversity;
              (4) assess the types of agricultural land best suited
            and worst suited for shared solar energy and
            agricultural production;
              (5) study the compatibility of different species of
            livestock with different solar panel system designs,
            including--
                      (A) the optimal height of and distance
                    between solar panels for livestock grazing and
                    shade for livestock;
                      (B) manure management considerations;
                      (C) fencing requirements; and
                      (D) other animal-handling considerations;
              (6) study the compatibility of different crop types
            with different solar panel system designs, including--
                      (A) the optimal height of and distance
                    between solar panels for plant shading and farm
                    equipment use; and
                      (B) the impact on crop yield;
              (7) evaluate the degree to which existing Federal,
            State, or local tax incentives result in the
            development of covered farmland under study;
              (8) recommend effective incentives that could shift
            solar panel installations toward the built environment,
            brownfield sites, and other contaminated sites;
              (9) evaluate the effectiveness of programs
            administered by the Federal Government related to solar
            energy development that--
                      (A) result in the development of contaminated
                    lands, the built environment, and other
                    preferred sites; and
                      (B) discourage solar panel installations that
                    would convert covered farmland out of
                    agricultural production; and
              (10) estimate the loss of agricultural production on
            covered farmland due to solar panel installations.
      (c) Consultation With Relevant Stakeholders.--In addition to
    consultation with the Secretary of Energy, while conducting the
    study under this section, the Secretary shall consult with--
              (1) farmers;
              (2) ranchers;
              (3) landowners;
              (4) agricultural organizations;
              (5) State departments of agriculture and energy;
              (6) units of local government;
              (7) conservation organizations;
              (8) land-grant colleges and universities (as defined
            in section 1404 of the National Agricultural Research,
            Extension, and Teaching Policy Act of 1977 (7 U.S.C.
            3103)); and
              (9) solar developers.
      (d) Report.--Within 2 years after the date of enactment of
    this Act, the Secretary of Agriculture shall submit to the
    Committee on Agriculture and the Committee on Energy and
    Commerce of the House of Representatives and the Committee on
    Agriculture, Nutrition, and Forestry and the Committee on
    Energy and Natural Resources of the Senate, a written report on
    the findings of the study and recommendations under this
    section.
      (e) Definitions.--In this section:
              (1) Covered farmland.--The term ``covered farmland''
            includes--
                      (A) farmland, as defined in section
                    1540(c)(1) of the Farmland Protection Policy
                    Act (7 U.S.C. 4201(c)(1)); and
                      (B) nonindustrial private forest land, as
                    defined in section 201(a)(18) of the Food
                    Security Act of 1985 (16 U.S.C. 3801(a)(18)).
              (2) Brownfield site.--The term ``brownfield site''
            has the meaning given that term in section 101(39) of
            the Comprehensive Environmental Response, Compensation,
            and Liability Act of 1980 (42 U.S.C. 9601(39)).
              (3) Secretary.--The term ``Secretary'' means the
            Secretary of Agriculture.

    SEC. 9015. LIMITATION ON USDA FUNDING FOR GROUND-MOUNTED SOLAR ENERGY
                        SYSTEMS.

      (a) Definitions.--In this section:
              (1) Covered farmland.--The term ``covered farmland''
            includes--
                      (A) farmland, as defined in section
                    1540(c)(1) of the Farmland Protection Policy
                    Act (7 U.S.C. 4201(c)(1)); and
                      (B) nonindustrial private forest land, as
                    defined in section 201(a)(18) of the Food
                    Security Act of 1985 (16 U.S.C. 3801(a)(18)).
              (2) Conversion.--The term ``conversion'' means, with
            respect to covered farmland, any activity that results
            in the covered farmland failing to meet the
            requirements of a State (as defined in section 343 of
            the Consolidated Farm and Rural Development Act (7
            U.S.C. 1991)) for agricultural production, activity, or
            use or timber harvest.
              (3) Secretary.--The term ``Secretary'' means the
            Secretary of Agriculture.
      (b) In General.--The Secretary may not provide financial
    assistance for a project that would result in the conversion of
    covered farmland for solar energy production.
      (c) Exception.--Subsection (b) shall not apply to a project
    if the project--
              (1) results in the conversion of less than 5 acres of
            covered farmland; or
              (2) results in the conversion of less than 50 acres
            of covered farmland with--
                      (A) the majority of the energy produced being
                    for on-farm use; and
                      (B) receipt of a resolution of approval or
                    support, or other similar instrument, from each
                    county and municipality in which the project is
                    sited.
      (d) Covered Farmland Protection.--
              (1) Farmland conservation plan required.--A person
            who has applied to the Secretary for financial
            assistance for a project to which subsection (c)(2)
            applies shall--
                      (A) develop a farmland conservation plan for
                    the project to--
                              (i) implement best practices to
                            protect future soil health and
                            productivity, and mitigate soil
                            erosion, compaction, and other effects
                            of solar energy production during
                            construction, operation, and
                            decommissioning; and
                              (ii) remediate and restore the soil
                            health of the farmland to that of the
                            farmland before the solar energy
                            production project construction; and
                      (B) ensure that sufficient funds, as
                    determined by the Secretary, are provided for
                    the decommissioning of the solar energy
                    production system and the remediation and
                    restoration of covered farmland to carry out
                    the farmland conservation plan described in
                    subparagraph (A).
              (2) Obligation and disbursement of funds.--The
            Secretary may obligate financial assistance for a
            project described in paragraph (1), but shall not
            disburse the financial assistance until the Secretary
            has determined that the applicant for the financial
            assistance has complied with paragraph (1).
              (3) Farmland conservation plan implementation.--A
            person referred to in paragraph (1) shall carry out--
                      (A) the provisions of the plan that are
                    described in paragraph (1)(A)(i), on the
                    receipt by the project of financial assistance
                    from the Secretary and for the duration of
                    solar energy production under the project; and
                      (B) the provisions of the plan that are
                    described in paragraph (1)(A)(ii), on the
                    cessation of solar energy production under the
                    project.
              (4) Compliance.--A person who fails to comply with
            paragraph (3) with respect to a project shall repay to
            the Secretary the full amount of the financial
            assistance provided by the Secretary to the person for
            the project.
      (e) Additional Limitations.--The Secretary may not provide
    financial assistance for a project that procures a solar energy
    component (as defined in section 45x(c)(3) of the Internal
    Revenue Code of 1986) produced, manufactured, or assembled--
              (1) in a foreign country of concern (as defined in
            section 10638(2) of the CHIPS Act of 2022 (42 U.S.C.
            19237(2))); or
              (2) by--
                      (A) an entity domiciled or controlled by such
                    a foreign country; or
                      (B) a foreign entity of concern (as defined
                    in section 10638(3) of the CHIPS Act of 2022
                    (42 U.S.C. 19237(3))).

                            TITLE X--MISCELLANEOUS

               *       *       *       *       *       *       *

                         Subtitle G--Specialty Crops

               *       *       *       *       *       *       *

    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 of Fresh Fruits and Vegetables for Distribution
    to Schools and Service Institutions.--The Secretary of
    Agriculture shall purchase 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)) using, of the amount specified in
    subsection (a), not less than $50,000,000 for each of fiscal
    years 2008 through [2023] 2031.
      (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.

               *       *       *       *       *       *       *

                                  ----------

                         FOOD AND NUTRITION ACT OF 2008

               *       *       *       *       *       *       *

                             DECLARATION OF POLICY

      Sec. 2. (a) It is hereby declared to be the policy of
    Congress, in order to promote the general welfare, to safeguard
    the health and well-being of the Nation's population by raising
    levels of nutrition among low-income households. Congress
    hereby finds that the limited food purchasing power of low-
    income households contributes to hunger and malnutrition among
    members of such households. Congress further finds that
    increased utilization of food in establishing and maintaining
    adequate national levels of nutrition will promote the
    distribution in a beneficial manner of the Nation's
    agricultural abundance and will strengthen the Nation's
    agricultural economy, as well as result in more orderly
    marketing and distribution of foods. To alleviate such hunger
    and malnutrition, a supplemental nutrition assistance program
    is herein authorized which will permit low-income households to
    obtain a more nutritious diet through normal channels of trade
    by increasing food purchasing power for all eligible households
    who apply for participation. That program includes as a purpose
    to assist low-income adults in obtaining employment and
    increasing their earnings. Such employment and earnings, along
    with program benefits, will permit low-income households to
    obtain a more nutritious diet through normal channels of trade
    by increasing food purchasing power for all eligible households
    who apply for participation.
      (b) Congress recognizes the supplemental nutrition assistance
    program allows low-income households to obtain supplemental
    food for an active, healthy life that supports the prevention
    of--
              (1) diet-related chronic disease, including--
                      (A) obesity;
                      (B) diabetes;
                      (C) hypertension;
                      (D) heart disease; and
                      (E) cancer;
              (2) disability;
              (3) premature death;
              (4) unsustainable health care costs; and
              (5) undermining of military readiness.
      (c) Accordingly, it is also the policy of the Congress that
    the Secretary should administer the supplemental nutrition
    assistance program in a manner that will provide participants,
    especially children, access to a variety of foods essential to
    optimal health and well-being.

               *       *       *       *       *       *       *

         ESTABLISHMENT OF THE SUPPLEMENTAL NUTRITION ASSISTANCE PROGRAM

      Sec. 4.
      (a) Program.--
              (1) Establishment.--Subject to the availability of
            funds appropriated under section 18 of this Act, the
            Secretary is authorized to formulate and administer a
            supplemental nutrition assistance program under which,
            at the request of the State agency, eligible households
            within the State shall be provided an opportunity to
            obtain a more nutritious diet through the issuance to
            them of an allotment, except that a State may not
            participate in the supplemental nutrition assistance
            program if the Secretary determines that State or local
            sales taxes are collected within that State on
            purchases of food made with benefits issued under this
            Act. The benefits so received by such households shall
            be used only to purchase food from retail food stores
            which have been approved for participation in the
            supplemental nutrition assistance program. Benefits
            issued and used as provided in this Act shall be
            redeemable at face value by the Secretary through the
            facilities of the Treasury of the United States.
              (2) State quality control incentive.--
                      (A) Definition of payment error rate.--In
                    this paragraph, the term ``payment error rate''
                    has the meaning given the term in section
                    16(c)(2).
                      (B) State cost share.--
                              (i) In general.--Subject to clause
                            (iii), beginning in fiscal year 2028,
                            if the payment error rate of a State as
                            determined under clause (ii) is--
                                      (I) less than 6 percent, the
                                    Federal share of the cost of
                                    the allotment described in
                                    paragraph (1) for that State in
                                    a fiscal year shall be 100
                                    percent, and the State share
                                    shall be 0 percent;
                                      (II) equal to or greater than
                                    6 percent but less than 8
                                    percent, the Federal share of
                                    the cost of the allotment
                                    described in paragraph (1) for
                                    that State in a fiscal year
                                    shall be 95 percent, and the
                                    State share shall be 5 percent;
                                      (III) equal to or greater
                                    than 8 percent but less than 10
                                    percent, the Federal share of
                                    the cost of the allotment
                                    described in paragraph (1) for
                                    that State in a fiscal year
                                    shall be 90 percent, and the
                                    State share shall be 10
                                    percent; and
                                      (IV) equal to or greater than
                                    10 percent, the Federal share
                                    of the cost of the allotment
                                    described in paragraph (1) for
                                    that State in a fiscal year
                                    shall be 85 percent, and the
                                    State share shall be 15
                                    percent.
                              (ii) Elections.--
                                      (I) Fiscal year 2028.--For
                                    fiscal year 2028, to calculate
                                    the applicable State share
                                    under clause (i), a State may
                                    elect to use the payment error
                                    rate of the State from fiscal
                                    year 2025 or 2026.
                                      (II) Fiscal year 2029 and
                                    thereafter.--For fiscal year
                                    2029 and each fiscal year
                                    thereafter, to calculate the
                                    applicable State share under
                                    clause (i), the Secretary shall
                                    use the payment error rate of
                                    the State for the third fiscal
                                    year preceding the fiscal year
                                    for which the State share is
                                    being calculated.
                              (iii) Delayed implementation.--
                                      (I) Fiscal year 2025.--If,
                                    for fiscal year 2025, the
                                    payment error rate of a State
                                    multiplied by 1.5 is equal to
                                    or above 20 percent, the
                                    implementation date under
                                    clause (i) for that State shall
                                    be fiscal year 2029.
                                      (II) Fiscal year 2026.--If,
                                    for fiscal year 2026, the
                                    payment error rate of a State
                                    multiplied by 1.5 is equal to
                                    or above 20 percent, the
                                    implementation date under
                                    clause (i) for that State shall
                                    be fiscal year 2030.
              (3) Maximum federal payment.--The Secretary may not
            pay towards the cost of an allotment described in
            paragraph (1) an amount that is greater than the
            applicable Federal share under paragraph (2).
      (b) Food Distribution Program on Indian Reservations.--
              (1) In general.--Distribution of commodities, with or
            without the supplemental nutrition assistance program,
            shall be made whenever a request for concurrent or
            separate food program operations, respectively, is made
            by a tribal organization.
              (2) Administration.--
                      (A) In general.--Subject to subparagraphs (B)
                    and (C), in the event of distribution on all or
                    part of an Indian reservation, the appropriate
                    agency of the State government in the area
                    involved shall be responsible for the
                    distribution.
                      (B) Administration by tribal organization.--
                    If the Secretary determines that a tribal
                    organization is capable of effectively and
                    efficiently administering a distribution
                    described in paragraph (1), then the tribal
                    organization shall administer the distribution.
                      (C) Prohibition.--The Secretary shall not
                    approve any plan for a distribution described
                    in paragraph (1) that permits any household on
                    any Indian reservation to participate
                    simultaneously in the supplemental nutrition
                    assistance program and the program established
                    under this subsection.
              (3) Disqualified participants.--An individual who is
            disqualified from participation in the food
            distribution program on Indian reservations under this
            subsection is not eligible to participate in the
            supplemental nutrition assistance program under this
            Act for a period of time to be determined by the
            Secretary.
              (4) Administrative costs.--
                      (A) In general.--Subject to subparagraph (B),
                    the Secretary shall pay not less than 80
                    percent of administrative costs and
                    distribution costs on Indian reservations as
                    the Secretary determines necessary for
                    effective administration of such distribution
                    by a State agency or tribal organization.
                      (B) Waiver.--The Secretary shall waive up to
                    100 percent of the non-Federal share of the
                    costs described in subparagraph (A) if the
                    Secretary determines that--
                              (i) the tribal organization is
                            financially unable to provide a greater
                            non-Federal share of the costs; or
                              (ii) providing a greater non-Federal
                            share of the costs would be a
                            substantial burden for the tribal
                            organization.
                      (C) Limitation.--The Secretary may not reduce
                    any benefits or services under the food
                    distribution program on Indian reservations
                    under this subsection to any tribal
                    organization that is granted a waiver under
                    subparagraph (B).
                      (D) Tribal contribution.--The Secretary may
                    allow a tribal organization to use funds
                    provided to the tribal organization through a
                    Federal agency or other Federal benefit to
                    satisfy all or part of the non-Federal share of
                    the costs described in subparagraph (A) if that
                    use is otherwise consistent with the purpose of
                    the funds.
              (5) Bison meat.--Subject to the availability of
            appropriations to carry out this paragraph, the
            Secretary may purchase bison meat for recipients of
            food distributed under this subsection, including bison
            meat from--
                      (A) Native American bison producers; and
                      (B) producer-owned cooperatives of bison
                    ranchers.
              (6) Traditional and locally- and regionally-grown
            food fund.--
                      (A) In general.--Subject to the availability
                    of appropriations, the Secretary shall
                    establish a fund for use in purchasing
                    traditional and locally- and regionally-grown
                    foods for recipients of food distributed under
                    this subsection.
                      (B) Native american producers.--Where
                    practicable, of the food provided under
                    subparagraph (A), at least 50 percent shall be
                    produced by Native American farmers, ranchers,
                    and producers.
                      (C) Definition of traditional and locally-
                    and regionally-grown.--The Secretary shall
                    determine the definition of the term
                    ``traditional and locally- and regionally-
                    grown'' with respect to food distributed under
                    this paragraph.
                      (D) Purchase of foods.--In carrying out this
                    paragraph, the Secretary shall purchase or
                    offer to purchase those traditional foods that
                    may be procured cost-effectively.
                      (E) Authorization of appropriations.--There
                    is authorized to be appropriated to the
                    Secretary to carry out this paragraph
                    $5,000,000 for each of fiscal years 2008
                    through [2023] 2031.
              (7) Availability of funds.--
                      (A) In general.--Funds made available for a
                    fiscal year to carry out this subsection shall
                    remain available for obligation for a period of
                    2 fiscal years.
                      (B) Administrative costs.--Funds made
                    available for a fiscal year to carry out
                    paragraph (4) shall remain available for
                    obligation by the State agency or tribal
                    organization for a period of 2 fiscal years.
      (c) The Secretary shall issue such regulations consistent
    with this Act as the Secretary deems necessary or appropriate
    for the effective and efficient administration of the
    supplemental nutrition assistance program and shall promulgate
    all such regulations in accordance with the procedures set
    forth in section 553 of title 5 of the United States Code. In
    addition, prior to issuing any regulation, the Secretary shall
    provide the Committee on Agriculture of the House of
    Representatives and the Committee on Agriculture, Nutrition,
    and Forestry of the Senate a copy of the regulation with a
    detailed statement justifying it.

               *       *       *       *       *       *       *

    SEC. 7. ISSUANCE AND USE OF PROGRAM BENEFITS.

      (a) In General.--Except as provided in subsection (i), EBT
    cards shall be issued only to households which have been duly
    certified as eligible to participate in the supplemental
    nutrition assistance program.
      (b) Use.--Benefits issued to eligible households shall be
    used by them only to purchase food from retail food stores
    which have been approved for participation in the supplemental
    nutrition assistance program at prices prevailing in such
    stores: Provided, That nothing in this Act shall be construed
    as authorizing the Secretary to specify the prices at which
    food may be sold by wholesale food concerns or retail food
    stores.
      (c) Design.--
              (1) In general.--EBT cards issued to eligible
            households shall be simple in design and shall include
            only such words or illustrations as are required to
            explain their purpose.
              (2) Prohibition.--The name of any public official
            shall not appear on any EBT card.
      (d) The Secretary shall prescribe appropriate procedures for
    the delivery of benefits to benefit issuers and for the
    subsequent controls to be placed over such benefits by benefit
    issuers in order to ensure adequate accountability.
      (e) Notwithstanding any other provision of this Act, the
    State agency shall be strictly liable to the Secretary for any
    financial losses involved in the acceptance, storage and
    issuance of benefits, except that in the case of losses
    resulting from the issuance and replacement of authorizations
    for benefits which are sent through the mail, the State agency
    shall be liable to the Secretary to the extent prescribed in
    the regulations promulgated by the Secretary.
      (f) Alternative Benefit Delivery.--
              (1) In general.--If the Secretary determines, in
            consultation with the Inspector General of the
            Department of Agriculture, that it would improve the
            integrity of the supplemental nutrition assistance
            program, the Secretary shall require a State agency to
            issue or deliver benefits using alternative methods.
              (2) Imposition of costs.--
                      (A) In general.--Except as provided in
                    subparagraph (B), the Secretary shall require
                    participating retail food stores (including
                    restaurants participating in a State option
                    restaurant program intended to serve the
                    elderly, disabled, and homeless) to pay 100
                    percent of the costs of acquiring, and arrange
                    for the implementation of, electronic benefit
                    transfer point-of-sale equipment and supplies,
                    including related services.
                      (B) Exemptions.--The Secretary may exempt
                    from subparagraph (A)--
                              (i) farmers' markets and other
                            direct-to-consumer markets, military
                            commissaries, nonprofit food buying
                            cooperatives, and establishments,
                            organizations, programs, or group
                            living arrangements described in
                            paragraphs (5), (7), and (8) of section
                            3(k); and
                              (ii) establishments described in
                            paragraphs (3), (4), and (9) of section
                            3(k), other than restaurants
                            participating in a State option
                            restaurant program.
                      (C) Interchange fees.--Nothing in this
                    paragraph permits the charging of fees relating
                    to the redemption of supplemental nutrition
                    assistance program benefits, in accordance with
                    subsection (h)(13).
              (3) Devaluation and termination of issuance of paper
            coupons.--
                      (A) Coupon issuance.--Effective on the date
                    of enactment of the Food, Conservation, and
                    Energy Act of 2008, no State shall issue any
                    coupon, stamp, certificate, or authorization
                    card to a household that receives supplemental
                    nutrition assistance under this Act.
                      (B) Ebt cards.--Effective beginning on the
                    date that is 1 year after the date of enactment
                    of the Food, Conservation, and Energy Act of
                    2008, only an EBT card issued under subsection
                    (i) shall be eligible for exchange at any
                    retail food store.
                      (C) De-obligation of coupons.--Coupons not
                    redeemed during the 1-year period beginning on
                    the date of enactment of the Food,
                    Conservation, and Energy Act of 2008 shall--
                              (i) no longer be an obligation of the
                            Federal Government; and
                              (ii) not be redeemable.
              (4) Termination of manual vouchers.--
                      (A) In general.--Effective beginning on the
                    date of enactment of this paragraph, except as
                    provided in subparagraph (B), no State shall
                    issue manual vouchers to a household that
                    receives supplemental nutrition assistance
                    under this Act or allow retail food stores to
                    accept manual vouchers as payment, unless the
                    Secretary determines that the manual vouchers
                    are necessary, such as in the event of an
                    electronic benefit transfer system failure or a
                    disaster situation.
                      (B) Exemptions.--The Secretary may exempt
                    categories of retail food stores or individual
                    retail food stores from subparagraph (A) based
                    on criteria established by the Secretary.
              (5) Unique identification number required.--
                      (A) In general.--To enhance the anti-fraud
                    protections of the program, the Secretary shall
                    require all parties providing electronic
                    benefit transfer services to provide for and
                    maintain unique terminal identification number
                    information through the supplemental nutrition
                    assistance program electronic benefit transfer
                    transaction routing system.
                      (B) Regulations.--
                              (i) In general.--Not earlier than 2
                            years after the date of enactment of
                            this paragraph, the Secretary shall
                            issue proposed regulations to carry out
                            this paragraph.
                              (ii) Commercial practices.--In
                            issuing regulations to carry out this
                            paragraph, the Secretary shall consider
                            existing commercial practices for other
                            point-of-sale debit transactions.
                      (C) Operation of individual point of sale
                    device by farmers' markets and direct marketing
                    farmers.--A farmers' market or direct marketing
                    farmer that is exempt under paragraph (2)(B)(i)
                    shall be allowed to operate an individual
                    electronic benefit transfer point of sale
                    device at more than 1 location under the same
                    supplemental nutrition assistance program
                    authorization, if--
                              (i) the farmers' market or direct
                            marketing farmer provides to the
                            Secretary information on location and
                            hours of operation at each location;
                            and
                              (ii)(I) the point of sale device used
                            by the farmers' market or direct
                            marketing farmer is capable of
                            providing location information of the
                            device through the electronic benefit
                            transfer system; or
                              (II) if the Secretary determines that
                            the technology is not available for a
                            point of sale device to meet the
                            requirement under subclause (I), the
                            farmers' market or direct marketing
                            farmer provides to the Secretary any
                            other information, as determined by the
                            Secretary, necessary to ensure the
                            integrity of transactions processed
                            using the point of sale device.
      (g)(1) The State agency may establish a procedure for
    staggering the issuance of benefits to eligible households
    throughout the month. Upon the request of the tribal
    organization that exercises governmental jurisdiction over the
    reservation, the State agency shall stagger the issuance of
    benefits for eligible households located on reservations for at
    least 15 days of a month.
              (2) Requirements.--
                      (A) In general.--Any procedure established
                    under paragraph (1) shall--
                              (i) not reduce the allotment of any
                            household for any period; and
                              (ii) ensure that no household
                            experiences an interval between
                            issuances of more than 40 days.
                      (B) Multiple issuances.--The procedure may
                    include issuing benefits to a household in more
                    than 1 issuance during a month only when a
                    benefit correction is necessary.
      (h) Electronic Benefit Transfers.--
              (1) In general.--
                      (A) Implementation.--Not later than October
                    1, 2002, each State agency shall implement an
                    electronic benefit transfer system under which
                    household benefits determined under section
                    8(a) or 26 are issued from and stored in a
                    central databank, unless the Secretary provides
                    a waiver for a State agency that faces unusual
                    barriers to implementing an electronic benefit
                    transfer system.
                      (B) Timely implementation.--Each State agency
                    is encouraged to implement an electronic
                    benefit transfer system under subparagraph (A)
                    as soon as practicable.
                      (C) State flexibility.--Subject to paragraph
                    (2), a State agency may procure and implement
                    an electronic benefit transfer system under the
                    terms, conditions, and design that the State
                    agency considers appropriate.
                      (D) Operation.--An electronic benefit
                    transfer system should take into account
                    generally accepted standard operating rules
                    based on--
                              (i) commercial electronic funds
                            transfer technology;
                              (ii) the need to permit interstate
                            operation and law enforcement
                            monitoring; and
                              (iii) the need to permit monitoring
                            and investigations by authorized law
                            enforcement agencies.
      (2) The Secretary shall issue final regulations that
    establish standards for the approval of such a system and shall
    periodically review such regulations and modify such
    regulations to take into account evolving technology and
    comparable industry standards. The standards shall include--
              (A) defining the required level of recipient
            protection regarding privacy, ease of use, and access
            to and service in retail food stores;
              (B) the terms and conditions of participation by
            retail food stores, financial institutions, and other
            appropriate parties;
              (C)(i) measures to maximize the security of a system
            using the most recent technology available that the
            State agency considers appropriate and cost effective
            and which may include personal identification numbers,
            photographic identification on electronic benefit
            transfer cards, and other measures to protect against
            fraud and abuse; and
                      (ii) unless determined by the Secretary to be
                    located in an area with significantly limited
                    access to food, measures that require an
                    electronic benefit transfer system--
                              (I) to set and enforce sales
                            restrictions based on benefit transfer
                            payment eligibility by using scanning
                            or product lookup entry; and
                              (II) to deny benefit tenders for
                            manually entered sales of ineligible
                            items.
              (D) system transaction interchange, reliability, and
            processing speeds;
              (E) financial accountability;
              (F) the required testing of system operations prior
            to implementation;
              (G) the analysis of the results of system
            implementation in a limited project area prior to
            expansion; and
              (H) procurement standards.
      (3) In the case of a system described in paragraph (1) in
    which participation is not optional for households, the
    Secretary shall not approve such a system unless--
              (A) a sufficient number of eligible retail food
            stores, including those stores able to serve minority
            language populations, have agreed to participate in the
            system throughout the area in which it will operate to
            ensure that eligible households will not suffer a
            significant reduction in their choice of retail food
            stores or a significant increase in the cost of food or
            transportation to participating food stores; and
              (B) any special equipment necessary to allow
            households to purchase food with the benefits issued
            under this Act is operational in the case of other
            participating stores, at a sufficient number of
            registers to provide service that is comparable to
            service provided individuals who are not members of
            households receiving supplemental nutrition assistance
            program benefits, as determined by the Secretary.
      (4) Administrative costs incurred in connection with
    activities under this subsection shall be eligible for
    reimbursement in accordance with section 16, subject to the
    limitations in section 16(g).
      (5) The Secretary shall periodically inform State agencies of
    the advantages of using electronic benefit systems to issue
    benefits in accordance with this subsection in lieu of issuing
    coupons to households.
      (6) This subsection shall not diminish the authority of the
    Secretary to conduct projects to test automated or electronic
    benefit delivery systems under section 17(f).
              (7) Replacement of benefits.--Regulations issued by
            the Secretary regarding the replacement of benefits and
            liability for replacement of benefits under an
            electronic benefit transfer system shall be similar to
            the regulations in effect for a paper-based
            supplemental nutrition assistance issuance system.
              (8) Replacement of cards.--
                      (A) Fees.--A State agency may collect a
                    charge for replacement of an electronic benefit
                    transfer card by reducing the monthly allotment
                    of the household receiving the replacement
                    card.
                      (B) Purposeful loss of cards.--
                              (i) In general.--Subject to terms and
                            conditions established by the Secretary
                            in accordance with clause (ii), if a
                            household makes excessive requests for
                            replacement of the electronic benefit
                            transfer card of the household, the
                            Secretary may require a State agency to
                            decline to issue a replacement card to
                            the household unless the household,
                            upon request of the State agency,
                            provides an explanation for the loss of
                            the card.
                              (ii) Requirements.--The terms and
                            conditions established by the Secretary
                            shall provide that--
                                      (I) the household be given
                                    the opportunity to provide the
                                    requested explanation and meet
                                    the requirements under this
                                    paragraph promptly;
                                      (II) after an excessive
                                    number of lost cards, the head
                                    of the household shall be
                                    required to review program
                                    rights and responsibilities
                                    with State agency personnel
                                    authorized to make
                                    determinations under section
                                    5(a); and
                                      (III) any action taken,
                                    including actions required
                                    under section 6(b)(2), other
                                    than the withholding of the
                                    electronic benefit transfer
                                    card until an explanation
                                    described in subclause (I) is
                                    provided, shall be consistent
                                    with the due process
                                    protections under section 6(b)
                                    or 11(e)(10), as appropriate.
                      (C) Protecting vulnerable persons.--In
                    implementing this paragraph, a State agency
                    shall act to protect homeless persons, persons
                    with disabilities, victims of crimes, and other
                    vulnerable persons who lose electronic benefit
                    transfer cards but are not intentionally
                    committing fraud.
                      (D) Effect on eligibility.--While a State may
                    decline to issue an electronic benefits
                    transfer card until a household satisfies the
                    requirements under this paragraph, nothing in
                    this paragraph shall be considered a denial of,
                    or limitation on, the eligibility for benefits
                    under section 5.
              (9) Optional photographic identification.--
                      (A) In general.--A State agency may require
                    that an electronic benefit card contain a
                    photograph of 1 or more members of a household.
                      (B) Other authorized users.--If a State
                    agency requires a photograph on an electronic
                    benefit card under subparagraph (A), the State
                    agency shall establish procedures to ensure
                    that any other appropriate member of the
                    household or any authorized representative of
                    the household may utilize the card.
              (10) Federal law not applicable.--Section 920 of the
            Electronic Fund Transfer Act shall not apply to
            electronic benefit transfer or reimbursement systems
            under this Act.
              (11) Application of anti-tying restrictions to
            electronic benefit transfer systems.--
                      (A) Definitions.--In this paragraph:
                              (i) Affiliate.--The term
                            ``affiliate'' has the meaning provided
                            the term in section 2(k) of the Bank
                            Holding Company Act of 1956 (12 U.S.C.
                            1841(k)).
                              (ii) Company.--The term ``company''
                            has the meaning provided the term in
                            section 106(a) of the Bank Holding
                            Company Act Amendments of 1970 (12
                            U.S.C. 1971), but shall not include a
                            bank, a bank holding company, or any
                            subsidiary of a bank holding company.
                              (iii) Electronic benefit transfer
                            service.--The term ``electronic benefit
                            transfer service'' means the processing
                            of electronic transfers of household
                            benefits, determined under section 8(a)
                            or 26, if the benefits are--
                                      (I) issued from and stored in
                                    a central databank;
                                      (II) electronically accessed
                                    by household members at the
                                    point of sale; and
                                      (III) provided by a Federal
                                    or State government.
                              (iv) Point-of-sale service.--The term
                            ``point-of-sale service'' means any
                            product or service related to the
                            electronic authorization and processing
                            of payments for merchandise at a retail
                            food store, including credit or debit
                            card services, automated teller
                            machines, point-of-sale terminals, or
                            access to on-line systems.
                      (B) Restrictions.--A company may not sell or
                    provide electronic benefit transfer services,
                    or fix or vary the consideration for electronic
                    benefit transfer services, on the condition or
                    requirement that the customer--
                              (i) obtain some additional point-of-
                            sale service from the company or an
                            affiliate of the company; or
                              (ii) not obtain some additional
                            point-of-sale service from a competitor
                            of the company or competitor of any
                            affiliate of the company.
                      (C) Consultation with the federal reserve
                    board.--Before promulgating regulations or
                    interpretations of regulations to carry out
                    this paragraph, the Secretary shall consult
                    with the Board of Governors of the Federal
                    Reserve System.
              (12) Recovering electronic benefits.--
                      (A) In general.--A State agency shall
                    establish a procedure for recovering electronic
                    benefits from the account of a household due to
                    inactivity, or due to the death of all members
                    of the household.
                      (B) Benefit storage.--
                              (i) In general.--A State agency may
                            store recovered electronic benefits
                            off-line in accordance with clause
                            (ii), if the household has not accessed
                            the account after 3 months.
                              (ii) Notice of benefit storage.--A
                            State agency shall--
                                      (I) send notice to a
                                    household the benefits of which
                                    are stored under clause (i);
                                    and
                                      (II) not later than 48 hours
                                    after request by the household,
                                    make the stored benefits
                                    available to the household.
                      (C) Benefit expunging.--
                              (i) In general.--Subject to clause
                            (ii), a State agency shall expunge
                            benefits that have not been accessed by
                            a household after a period of 9 months,
                            or upon verification that all members
                            of the household are deceased.
                              (ii) Notice of benefit expunging.--
                            Not later than 30 days before benefits
                            are to be expunged under clause (i), a
                            State agency shall--
                                      (I) provide sufficient notice
                                    to the household that benefits
                                    will be expunged due to
                                    inactivity, and the date upon
                                    which benefits will be
                                    expunged;
                                      (II) for benefits stored off-
                                    line in accordance with
                                    subparagraph (B), provide the
                                    household an opportunity to
                                    request that such benefits be
                                    restored to the household; and
                                      (III) not later than 48 hours
                                    after request by the household,
                                    make the benefits available to
                                    the household.
                      (D) Notice.--A State agency shall--
                              (i) send notice to a household the
                            benefits of which are stored under
                            subparagraph (B); and
                              (ii) not later than 48 hours after
                            request by the household, make the
                            stored benefits available to the
                            household.
              (13) Fees.--
                      (A) Interchange fees.--No interchange fees
                    shall apply to electronic benefit transfer
                    transactions under this subsection.
                      (B) Other fees.--[Effective through fiscal
                    year 2023, neither] Neither a State, nor any
                    agent, contractor, or subcontractor of a State
                    who facilitates the provision of supplemental
                    nutrition assistance program benefits in such
                    State may impose a fee for switching (as
                    defined in subsection (j)(1)(H)) or routing
                    such benefits.
              (14) Mobile technologies.--
                      (A) In general.--Subject to subparagraph (B),
                    the Secretary shall authorize the use of mobile
                    technologies for the purpose of accessing
                    supplemental nutrition assistance program
                    benefits.
                      (B) Demonstration projects on access of
                    benefits through mobile technologies.--
                              (i) Demonstration projects.--Before
                            authorizing implementation of
                            subparagraph (A) in all States, the
                            Secretary shall approve not more than 5
                            demonstration project proposals
                            submitted by State agencies that will
                            pilot the use of mobile technologies
                            for supplemental nutrition assistance
                            program benefits access.
                              (ii) Project requirements.--To be
                            eligible to participate in a
                            demonstration project under clause (i),
                            a State agency shall submit to the
                            Secretary for approval a plan that --
                                      (I) provides recipient
                                    protections regarding privacy,
                                    ease of use, household access
                                    to benefits, and support
                                    similar to the protections
                                    provided under existing
                                    methods;
                                      (II) ensures that all
                                    recipients, including those
                                    without access to mobile
                                    payment technology and those
                                    who shop across State borders,
                                    have a means of benefit access;
                                      (III) requires retail food
                                    stores, unless exempt under
                                    section 7(f)(2)(B), to bear the
                                    costs of acquiring and
                                    arranging for the
                                    implementation of point-of-sale
                                    equipment and supplies for the
                                    redemption of benefits that are
                                    accessed through mobile
                                    technologies;
                                      (IV) requires that foods
                                    purchased with benefits issued
                                    under this section through
                                    mobile technologies are
                                    purchased at a price not higher
                                    than the price of the same food
                                    purchased by other methods used
                                    by the retail food store, as
                                    determined by the Secretary;
                                      (V) ensures adequate
                                    documentation for each
                                    authorized transaction,
                                    adequate security measures to
                                    deter fraud, and adequate
                                    access to retail food stores
                                    that accept benefits accessed
                                    through mobile technologies, as
                                    determined by the Secretary;
                                      (VI) provides for an
                                    evaluation of the demonstration
                                    project, including, but not
                                    limited to, an evaluation of
                                    household access to benefits;
                                      (VII) requires that the State
                                    demonstration projects are
                                    voluntary for all retail food
                                    stores and that all recipients
                                    are able to use benefits in
                                    non-participating retail food
                                    stores; and
                                      (VIII) meets other criteria
                                    as established by the
                                    Secretary.
                              (iii) Priority.--The Secretary may
                            prioritize demonstration project
                            proposals that would--
                                      (I) reduce fraud;
                                      (II) encourage positive
                                    nutritional outcomes; and
                                      (III) meet such other
                                    criteria as determined by the
                                    Secretary.
                              (iv) Date of project approval.--The
                            Secretary shall solicit and approve the
                            qualifying demonstration projects
                            required under subparagraph (B)(i) not
                            later than January 1, 2021.
                      (C) Report to Congress.--The Secretary
                    shall--
                              (i) by not later than January 1,
                            2022, authorize implementation of
                            subparagraph (A) in all States, unless
                            the Secretary makes a finding, based on
                            the data provided under subparagraph
                            (B), that implementation in all States
                            requires further study by way of an
                            extended pilot period or is not in the
                            best interest of the supplemental
                            nutrition assistance program; and
                              (ii) if the determination made in
                            clause (i) is not to implement
                            subparagraph (A) in all States, submit
                            a report to the Committee on
                            Agriculture of the House of
                            Representatives and the Committee on
                            Agriculture, Nutrition, and Forestry of
                            the Senate that includes the basis of
                            the finding.
      (i) State Option to Issue Benefits to Certain Individuals
    Made Ineligible by Welfare Reform.--
              (1) In general.--Notwithstanding any other provision
            of law, a State agency may, with the approval of the
            Secretary, issue benefits under this Act to an
            individual who is ineligible to participate in the
            supplemental nutrition assistance program solely as a
            result of section 6(o)(2) of this Act or section 402 or
            403 of the Personal Responsibility and Work Opportunity
            Reconciliation Act of 1996 (8 U.S.C. 1612 or 1613).
              (2) State payments to secretary.--
                      (A) In general.--Not later than the date the
                    State agency issues benefits to individuals
                    under this subsection, the State agency shall
                    pay the Secretary, in accordance with
                    procedures established by the Secretary, an
                    amount that is equal to--
                              (i) the value of the benefits; and
                              (ii) the costs of issuing and
                            redeeming benefits, and other Federal
                            costs, incurred in providing the
                            benefits, as determined by the
                            Secretary.
                      (B) Crediting.--Notwithstanding section
                    3302(b) of title 31, United States Code,
                    payments received under subparagraph (A) shall
                    be credited to the supplemental nutrition
                    assistance program appropriation account or the
                    account from which the costs were drawn, as
                    appropriate, for the fiscal year in which the
                    payment is received.
              (3) Reporting.--To be eligible to issue benefits
            under this subsection, a State agency shall comply with
            reporting requirements established by the Secretary to
            carry out this subsection.
              (4) Plan.--To be eligible to issue benefits under
            this subsection, a State agency shall--
                      (A) submit a plan to the Secretary that
                    describes the conditions and procedures under
                    which the benefits will be issued, including
                    eligibility standards, benefit levels, and the
                    methodology the State agency will use to
                    determine amounts due the Secretary under
                    paragraph (2); and
                      (B) obtain the approval of the Secretary for
                    the plan.
              (5) Violations.--A sanction, disqualification, fine,
            or other penalty prescribed under Federal law
            (including sections 12 and 15) shall apply to a
            violation committed in connection with a benefit issued
            under this subsection.
              (6) Ineligibility for administrative reimbursement.--
            Administrative and other costs incurred in issuing a
            benefit under this subsection shall not be eligible for
            Federal funding under this Act.
              (7) Exclusion from enhanced payment accuracy
            systems.--Section 16(c) shall not apply to benefits
            issued under this subsection.
      (j) Interoperability and Portability of Electronic Benefit
    Transfer Transactions.--
              (1) Definitions.--In this subsection:
                      (A) Electronic benefit transfer card.--The
                    term ``electronic benefit transfer card'' means
                    a card that provides benefits under this Act
                    through an electronic benefit transfer service
                    (as defined in subsection (h)(11)(A)).
                      (B) Electronic benefit transfer contract.--
                    The term ``electronic benefit transfer
                    contract'' means a contract that provides for
                    the issuance, use, or redemption of program
                    benefits in the form of electronic benefit
                    transfer cards.
                      (C) Interoperability.--The term
                    ``interoperability'' means a system that
                    enables program benefits in the form of an
                    electronic benefit transfer card to be redeemed
                    in any State.
                      (D) Interstate transaction.--The term
                    ``interstate transaction'' means a transaction
                    that is initiated in 1 State by the use of an
                    electronic benefit transfer card that is issued
                    in another State.
                      (E) Portability.--The term ``portability''
                    means a system that enables program benefits in
                    the form of an electronic benefit transfer card
                    to be used in any State by a household to
                    purchase food at a retail food store or
                    wholesale food concern approved under this Act.
                      (F) Settling.--The term ``settling'' means
                    movement, and reporting such movement, of funds
                    from an electronic benefit transfer card issuer
                    that is located in 1 State to a retail food
                    store, or wholesale food concern, that is
                    located in another State, to accomplish an
                    interstate transaction.
                      (G) Smart card.--The term ``smart card''
                    means an intelligent benefit card described in
                    section 17(f).
                      (H) Switching.--The term ``switching'' means
                    the routing of an intrastate or interstate
                    transaction that consists of transmitting the
                    details of a transaction electronically
                    recorded through the use of an electronic
                    benefit transfer card in one State to the
                    issuer of the card that may be in the same or
                    different State.
              (2) Requirement.--Not later than October 1, 2002, the
            Secretary shall ensure that systems that provide for
            the electronic issuance, use, and redemption of program
            benefits in the form of electronic benefit transfer
            cards are interoperable, and supplemental nutrition
            assistance program benefits are portable, among all
            States.
              (3) Cost.--The cost of achieving the interoperability
            and portability required under paragraph (2) shall not
            be imposed on any retail store, or any wholesale food
            concern, approved to participate in the supplemental
            nutrition assistance program.
              (4) Standards.--Not later than 210 days after the
            date of enactment of this subsection, the Secretary
            shall promulgate regulations that--
                      (A) adopt a uniform national standard of
                    interoperability and portability required under
                    paragraph (2) that is based on the standard of
                    interoperability and portability used by a
                    majority of State agencies; and
                      (B) require that any electronic benefit
                    transfer contract that is entered into 30 days
                    or more after the regulations are promulgated,
                    by or on behalf of a State agency, provide for
                    the interoperability and portability required
                    under paragraph (2) in accordance with the
                    national standard.
              (5) Exemptions.--
                      (A) Contracts.--The requirements of paragraph
                    (2) shall not apply to the transfer of benefits
                    under an electronic benefit transfer contract
                    before the expiration of the term of the
                    contract if the contract--
                              (i) is entered into before the date
                            that is 30 days after the regulations
                            are promulgated under paragraph (4);
                            and
                              (ii) expires after October 1, 2002.
                      (B) Waiver.--At the request of a State
                    agency, the Secretary may provide 1 waiver to
                    temporarily exempt, for a period ending on or
                    before the date specified under clause (iii),
                    the State agency from complying with the
                    requirements of paragraph (2), if the State
                    agency--
                              (i) establishes to the satisfaction
                            of the Secretary that the State agency
                            faces unusual technological barriers to
                            achieving by October 1, 2002, the
                            interoperability and portability
                            required under paragraph (2);
                              (ii) demonstrates that the best
                            interest of the supplemental nutrition
                            assistance program would be served by
                            granting the waiver with respect to the
                            electronic benefit transfer system used
                            by the State agency to administer the
                            supplemental nutrition assistance
                            program; and
                              (iii) specifies a date by which the
                            State agency will achieve the
                            interoperability and portability
                            required under paragraph (2).
                      (C) Smart card systems.--The Secretary shall
                    allow a State agency that is using smart cards
                    for the delivery of supplemental nutrition
                    assistance program benefits to comply with the
                    requirements of paragraph (2) at such time
                    after October 1, 2002, as the Secretary
                    determines that a practicable technological
                    method is available for interoperability with
                    electronic benefit transfer cards.
              (6) Funding.--
                      (A) In general.--In accordance with
                    regulations promulgated by the Secretary, the
                    Secretary shall pay 100 percent of the costs
                    incurred by a State agency under this Act for
                    switching and settling interstate
                    transactions--
                              (i) incurred after the date of
                            enactment of this subsection and before
                            October 1, 2002, if the State agency
                            uses the standard of interoperability
                            and portability adopted by a majority
                            of State agencies; and
                              (ii) incurred after September 30,
                            2002, if the State agency uses the
                            uniform national standard of
                            interoperability and portability
                            adopted under paragraph (4)(A).
                      (B) Limitation.--The total amount paid to
                    State agencies for each fiscal year under
                    subparagraph (A) shall not exceed $500,000.
      (k) Acceptance of Program Benefits Through Online
    Transactions.--
              (1) In general.--Subject to paragraph (4), the
            Secretary shall approve retail food stores to accept
            benefits from recipients of supplemental nutrition
            assistance through on-line transactions.
              (2) Requirements to accept benefits.--A retail food
            store seeking to accept benefits from recipients of
            supplemental nutrition assistance through on-line
            transactions shall--
                      (A) establish recipient protections regarding
                    privacy, ease of use, access, and support
                    similar to the protections provided for
                    transactions made in retail food stores;
                      (B) ensure benefits are not used to pay
                    delivery, ordering, convenience, or other fees
                    or charges;
                      (C) clearly notify participating households
                    at the time a food order is placed--
                              (i) of any delivery, ordering,
                            convenience, or other fee or charge
                            associated with the food purchase; and
                              (ii) that any such fee cannot be paid
                            with benefits provided under this Act;
                      (D) ensure the security of on-line
                    transactions by using the most effective
                    technology available that the Secretary
                    considers appropriate and cost-effective and
                    that is comparable to the security of
                    transactions at retail food stores; and
                      (E) meet other criteria as established by the
                    Secretary.
              (3) State agency action.--Each State agency shall
            ensure that recipients of supplemental nutrition
            assistance can use benefits on-line as described in
            this subsection as appropriate.
              (4) Demonstration project on acceptance of benefits
            through on-line transactions.--
                      (A) In general.--Before the Secretary
                    authorizes implementation of paragraph (1) in
                    all States, the Secretary shall carry out a
                    number of demonstration projects as determined
                    by the Secretary to test the feasibility of
                    allowing retail food stores to accept benefits
                    through on-line transactions.
                      (B) Demonstration projects.--To be eligible
                    to participate in a demonstration project under
                    subparagraph (A), a retail food store shall
                    submit to the Secretary for approval a plan
                    that includes--
                              (i) a method of ensuring that
                            benefits may be used to purchase only
                            eligible items under this Act;
                              (ii) a description of the method of
                            educating participant households about
                            the availability and operation of on-
                            line purchasing;
                              (iii) adequate testing of the on-line
                            purchasing option prior to
                            implementation;
                              (iv) the provision of data as
                            requested by the Secretary for purposes
                            of analyzing the impact of the project
                            on participant access, ease of use, and
                            program integrity;
                              (v) reports on progress, challenges,
                            and results, as determined by the
                            Secretary; and
                              (vi) such other criteria, including
                            security criteria, as established by
                            the Secretary.
      (l) Online Purchasing Program.--
              (1) Permanent authority.--Not later than 120 days
            after the effective date of this subsection, the
            Secretary shall begin transitioning the supplemental
            nutrition assistance program online purchasing
            initiative from pilot or demonstration status to
            permanent nationwide program operations, with the
            completion of the regulations marking the end of the
            transition.
              (2) Regulations.--The Secretary shall issue such
            regulations and guidance as may be necessary to carry
            out paragraph (1), including provisions related to
            program integrity, consumer protections, and equitable
            access in rural areas. Such regulations shall be issued
            not later than 2 years after the effective date of this
            subsection.
              (3) Stakeholder consultation.--The Secretary shall
            establish a formal process for consultation with State
            agencies, authorized retailers, electronic benefit
            transfer processors, consumer advocates, and other
            relevant stakeholders to incorporate lessons learned
            from online purchasing operations during the period of
            2014 through 2025.
              (4) Report to congress.--Not later than 120 days
            after the effective date of this subsection, 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 consultation process and
            recommendations received.

               *       *       *       *       *       *       *

           APPROVAL OF RETAIL FOOD STORES AND WHOLESALE FOOD CONCERNS

      Sec. 9.
      (a) Authorization to Accept and Redeem Benefits.--
              (1) Application.--
                      (A) In general.--Regulations issued pursuant
                    to this Act shall provide for the submission of
                    applications for approval by retail food stores
                    and wholesale food concerns which desire to be
                    authorized to accept and redeem benefits under
                    the supplemental nutrition assistance program
                    and for the approval of those applicants whose
                    participation will effectuate the purposes of
                    the supplemental nutrition assistance program.
                      (B) Factors for consideration.--In
                    determining the qualifications of applicants,
                    there shall be considered among such other
                    factors as may be appropriate, the following:
                              (i) the nature and extent of the food
                            business conducted by the applicant;
                              (ii) the volume of benefit
                            transactions which may reasonably be
                            expected to be conducted by the
                            applicant food store or wholesale food
                            concern;
                              (iii) whether the applicant is
                            located in an area with significantly
                            limited access to food;
                              (iv) any information, if available,
                            about the abilityof the anticipated or
                            existing electronic benefit
                            transferequipment and service provider
                            of the applicant toprovide sufficient
                            information through the
                            electronicbenefit transfer system to
                            minimize the risk of
                            fraudulenttransactions; and
                              (v) the business integrity and
                            reputation of the applicant.
                      (C) Certificate.--Approval of an applicant
                    shall be evidenced by the issuance to such
                    applicant of a nontransferable certificate of
                    approval.
                      (D) Visit Required.--No retail food store or
                    wholesale food concern of a type determined by
                    the Secretary, based on factors that include
                    size, location, and type of items sold, shall
                    be approved to be authorized or reauthorized
                    for participation in the supplemental nutrition
                    assistance program unless an authorized
                    employee of the Department of Agriculture, a
                    designee of the Secretary, or, if practicable,
                    an official of the State or local government
                    designated by the Secretary has visited the
                    store or concern for the purpose of determining
                    whether the store or concern should be approved
                    or reauthorized, as appropriate.
      (2) The Secretary shall issue regulations providing for--
              (A) the periodic reauthorization of retail food
            stores and wholesale food concerns; and
              (B) periodic notice to participating retail food
            stores and wholesale food concerns of the definitions
            of ``retail food store'', ``staple foods'', ``eligible
            foods'', and ``perishable foods''.
      (3) Authorization periods.--The Secretary shall establish
    specific time periods during which authorization to accept and
    redeem benefits shall be valid under the supplemental nutrition
    assistance program.
              (4) Electronic benefit transfer equipment and service
            providers.--Before implementing clause (iv) of
            paragraph (1)(B), the Secretary shall issue guidance
            for retail food stores on how to select electronic
            benefit transfer equipment and service providers that
            are able to meet the requirements of that clause.
      (b)(1) No wholesale food concern may be authorized to accept
    and redeem benefits unless the Secretary determines that its
    participation is required for the effective and efficient
    operation of the supplemental nutrition assistance program. No
    co-located wholesale-retail food concern may be authorized to
    accept and redeem benefits as a retail food store, unless (A)
    the concern does a substantial level of retail food business,
    or (B) the Secretary determines that failure to authorize such
    a food concern as a retail food store would cause hardship to
    households that receive supplemental nutrition assistance
    program benefits. In addition, no firm may be authorized to
    accept and redeem benefits as both a retail food store and as a
    wholesale food concern at the same time.
      (2)(A) A buyer or transferee (other than a bona fide buyer or
    transferee) of a retail food store or wholesale food concern
    that has been disqualified under section 12(a) may not accept
    or redeem benefits until the Secretary receives full payment of
    any penalty imposed on such store or concern.
      (B) A buyer or transferee may not, as a result of the sale or
    transfer of such store or concern, be required to furnish a
    bond under section 12(d).
      (c) Regulations issued pursuant to this Act shall require an
    applicant retail food store or wholesale food concern to submit
    information, which may include relevant income and sales tax
    filing documents, purchase invoices, records relating to
    electronic benefit transfer equipment and related services,
    transaction and redemption data provided through the electronic
    benefit transfer system, or program-related records, which will
    permit a determination to be made as to whether such applicant
    qualifies, or continues to qualify, for approval under the
    provisions of this Act or the regulations issued pursuant to
    this Act. The regulations may require retail food stores and
    wholesale food concerns to provide written authorization for
    the Secretary to verify all relevant tax filings with
    appropriate agencies and to obtain corroborating documentation
    from other sources so that the accuracy of information provided
    by the stores and concerns may be verified. Regulations issued
    pursuant to this Act shall provide for safeguards which limit
    the use or disclosure of information obtained under the
    authority granted by this subsection to purposes directly
    connected with administration and enforcement of the provisions
    of this Act or the regulations issued pursuant to this Act,
    except that such information may be disclosed to any used by
    Federal law enforcement and investigative agencies and law
    enforcement and investigative agencies of a State government
    for the purposes of administering or enforcing this Act or any
    other Federal or State law and the regulations issued under
    this Act or such law, and State agencies that administer the
    special supplemental nutrition program for women, infants and
    children, authorized under section 17 of the Child Nutrition
    Act of 1966, for purposes of administering the provisions of
    that Act and the regulations issued under that Act. Any person
    who publishes, divulges, discloses, or makes known in any
    manner or to any extent not authorized by Federal law
    (including a regulation) any information obtained under this
    subsection shall be fined not more than $1,000 or imprisoned
    not more than 1 year, or both. The regulations shall establish
    the criteria to be used by the Secretary to determine whether
    the information is needed. The regulations shall not prohibit
    the audit and examination of such information by the
    Comptroller General of the United States authorized by any
    other provision of law.
      (d) Any retail food store or wholesale food concern which has
    failed upon application to receive approval to participate in
    the supplemental nutrition assistance program may obtain a
    hearing on such refusal as provided in section 14 of this Act.
    A retail food store or wholesale food concern that is denied
    approval to accept and redeem benefits because the store or
    concern does not meet, on two consecutive occasions within a 3
    year period, criteria for approval established by the Secretary
    may not, for at least 6 months, submit a new application to
    participate in the program. The Secretary may establish a
    longer time period under the preceding sentence, including
    permanent disqualification, that reflects the severity of the
    basis of the denial.
      (e) Approved retail food stores shall display a sign
    providing information on how persons may report abuses they
    have observed in the operation of the supplemental nutrition
    assistance program.
      (f) In those areas in which the Secretary, in consultation
    with the Inspector General of the Department of Agriculture,
    finds evidence that the operation of house-to-house trade
    routes damages the program's integrity, the Secretary shall
    limit the participation of house-to-house trade routes to those
    routes that are reasonably necessary to provide adequate access
    to households.
      (g) EBT Service Requirement.--An approved retail food store
    shall provide adequate EBT service as described in section
    7(h)(3)(B).
      (h) Private Establishments.--
              (1) In general.--Subject to paragraph (2), no private
            establishment that contracts with a State agency to
            offer meals at concessional prices as described in
            paragraphs (3), (4), and (9) of section 3(k) may be
            authorized to accept and redeem benefits unless the
            Secretary determines that the participation of the
            private establishment is required to meet a documented
            need in accordance with section 11(e)(25).
              (2) Existing contracts.--
                      (A) In general.--If, on the day before the
                    date of enactment of this subsection, a State
                    has entered into a contract with a private
                    establishment described in paragraph (1) and
                    the Secretary has not determined that the
                    participation of the private establishment is
                    necessary to meet a documented need in
                    accordance with section 11(e)(25), the
                    Secretary shall allow the operation of the
                    private establishment to continue without that
                    determination of need for a period not to
                    exceed 180 days from the date on which the
                    Secretary establishes determination criteria,
                    by regulation, under section 11(e)(25).
                      (B) Justification.--If the Secretary
                    determines to terminate a contract with a
                    private establishment that is in effect on the
                    date of enactment of this subsection, the
                    Secretary shall provide justification to the
                    State in which the private establishment is
                    located for that termination.
              (3) Report to Congress.--Not later than 90 days after
            September 30, 2014, and 90 days after the last day of
            each fiscal year thereafter, 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
            effectiveness of a program under this subsection using
            any information received from States under section
            11(e)(25) as well as any other information the
            Secretary may have relating to the manner in which
            benefits are used.
      (i) Review of Program Operations.--
              (1) Review by the secretary.--The Secretary--
                      (A) shall review a representative sample of
                    currently authorized facilities referred to in
                    section 3(k)(3) to determine whether benefits
                    are properly used by or on behalf of
                    participating households residing in such
                    facilities and whether such facilities are
                    using more than 1 source of Federal or State
                    funding to meet the food needs of residents;
                      (B) may carry out similar reviews for
                    currently participating residential drug and
                    alcohol treatment and rehabilitation programs,
                    and group living arrangements for the blind and
                    disabled, referred to in section 3(k);
                      (C) shall gather information, and such
                    facilities, programs, and arrangements shall be
                    required to submit information deemed necessary
                    for a full and thorough review; and
                      (D) shall report the results of these reviews
                    to the Committee on Agriculture of the House of
                    Representatives and the Committee on
                    Agriculture, Nutrition, and Forestry of the
                    Senate not later than 18 months after the date
                    of the enactment of the Agriculture Improvement
                    Act of 2018, along with recommendations
                    regarding--
                              (i) any additional requirements or
                            oversight that would be appropriate for
                            such facilities, programs, and
                            arrangements; and
                              (ii) whether such facilities,
                            programs, and arrangements should
                            continue to be authorized to
                            participate in the supplemental
                            nutrition assistance program.
              (2) Limitation.--Nothing in this subsection shall
            authorize the Secretary to deny any application for
            continued authorization, any application for
            authorization, or any request to withdraw the
            authorization of any such facility, program, or
            arrangement based on a determination that residents of
            any such facility or entity are residents of an
            institution prior to December 31, 2022.
      (j) Incentives.--
              (1) Definition of eligible incentive food.--In this
            subsection, the term ``eligible incentive food''
            means--
                      (A) a staple food that is identified for
                    increased consumption, consistent with the most
                    recent dietary recommendations; and
                      (B) a fruit, vegetable, dairy, whole grain,
                    animal protein, or product thereof.
              (2) Guidance.--
                      (A) In general.--The Secretary shall issue
                    guidance to clarify the process by which an
                    approved retail food store may seek a waiver to
                    offer an incentive, which may be used only for
                    the purchase of an eligible incentive food at
                    the point of purchase, to a household
                    purchasing food with benefits issued under this
                    Act.
                      (B) Guidance.--The guidance under
                    subparagraph (A) shall establish a process
                    under which an approved retail food store,
                    prior to carrying out an incentive program
                    under this subsection, shall provide to the
                    Secretary information describing the incentive
                    program, including--
                              (i) the types of incentives that will
                            be offered;
                              (ii) the types of foods that will be
                            incentivized for purchase; and
                              (iii) an explanation of how the
                            incentive program intends to support
                            meeting dietary intake goals.
              (3) No limitation on benefits.--A waiver granted
            under this subsection shall not be used to carry out
            any activity that limits the use of benefits under this
            Act or any other Federal nutrition law.
              (4) Effect.--Guidance provided under this subsection
            shall not affect any requirements under section 4405 of
            the Food, Conservation, and Energy Act of 2008 (7
            U.S.C. 7517), including the eligibility of a retail
            food store to participate in a project funded under
            such section.
              (5) 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 an annual report
            describing the types of incentives approved under this
            subsection.

    SEC. 11. ADMINISTRATION.

      (a) State Responsibility.--
              (1) In general.--The State agency of each
            participating State shall have responsibility for
            certifying applicant households and issuing EBT cards.
              (2) Local administration.--The responsibility of the
            agency of the State government shall not be affected by
            whether the program is operated on a State-administered
            or county-administered basis, as provided under section
            3(s)(1).
              (3) Records.--
                      (A) In general.--Each State agency shall keep
                    such records as may be necessary to determine
                    whether the program is being conducted in
                    compliance with this Act (including regulations
                    issued under this Act).
                      (B) Inspection and audit.--All records, and
                    the entire information systems in which records
                    are contained, that are covered in subparagraph
                    (A) shall--
                              (i) be made available for inspection
                            and audit by the Secretary, subject to
                            data and security protocols agreed to
                            by the State agency and Secretary;
                              (ii) subject to subsection (e)(8), be
                            available for review in any action
                            filed by a household to enforce any
                            provision of this Act (including
                            regulations issued under this Act); and
                              (iii) be preserved for such period of
                            not less than 3 years as may be
                            specified in regulations.
              (4) Review of major changes in program design.--
                      (A) In general.--The Secretary shall develop
                    standards for identifying major changes in the
                    operations of a State agency, including--
                              (i) large or substantially-increased
                            numbers of low-income households that
                            do not live in reasonable proximity to
                            an office performing the major
                            functions described in subsection (e);
                              (ii) substantial increases in
                            reliance on automated systems for the
                            performance of responsibilities
                            previously performed by personnel
                            described in subsection (e)(6)(B);
                              (iii) changes that potentially
                            increase the difficulty of reporting
                            information under subsection (e) or
                            section 6(c); and
                              (iv) changes that may
                            disproportionately increase the burdens
                            on any of the types of households
                            described in subsection (e)(2)(A).
                      (B) Notification.--If a State agency
                    implements a major change in operations, the
                    State agency shall--
                              (i) notify the Secretary; and
                              (ii) collect such information as the
                            Secretary shall require to identify and
                            correct any adverse effects on program
                            integrity or access, including access
                            by any of the types of households
                            described in subsection (e)(2)(A).
      (b) When a State agency learns, through its own reviews under
    section 16 or other reviews, or through other sources, that it
    has improperly denied, terminated, or underissued benefits to
    an eligible household, the State agency shall promptly restore
    any improperly denied benefits to the extent required by
    sections 11(e)(11) and 14(b), and shall take other steps to
    prevent a recurrence of such errors where such error was caused
    by the application of State agency practices, rules or
    procedures inconsistent with the requirements of this Act or
    with regulations or policies of the Secretary issued under the
    authority of this Act.
      (c) Civil Rights Compliance.--
              (1) In general.--In the certification of applicant
            households for the supplemental nutrition assistance
            program, there shall be no discrimination by reason of
            race, sex, religious creed, national origin, or
            political affiliation.
              (2) Relation to other laws.--The administration of
            the program by a State agency shall be consistent with
            the rights of households under the following laws
            (including implementing regulations):
                      (A) The Age Discrimination Act of 1975 (42
                    U.S.C. 6101 et seq.).
                      (B) Section 504 of the Rehabilitation Act of
                    1973 (29 U.S.C. 794).
                      (C) The Americans with Disabilities Act of
                    1990 (42 U.S.C. 12101 et seq.).
                      (D) Title VI of the Civil Rights Act of 1964
                    (42 U.S.C. 2000d et seq.).
      (d) The State agency (as defined in section 3(s)(1)) of each
    State desiring to participate in the supplemental nutrition
    assistance program shall submit for approval a plan of
    operation specifying the manner in which such program will be
    conducted within the State in every political subdivision. The
    Secretary may not, as a part of the approval process for a plan
    of operation, require a State to submit for prior approval by
    the Secretary the State agency instructions to staff,
    interpretations of existing policy, State agency methods of
    administration, forms used by the State agency, or any
    materials, documents, memoranda, bulletins, or other matter,
    unless the State determines that the materials, documents,
    memoranda, bulletins, or other matter alter or amend the State
    plan of operation or conflict with the rights and levels of
    benefits to which a household is entitled. In the case of all
    or part of an Indian reservation, the State agency as defined
    in section 3(s)(1) shall be responsible for conducting such
    program on such reservation unless the Secretary determines
    that the State agency (as defined in section 3(s)(1)) is
    failing, subsequent to the enactment of this Act, properly to
    administer such program on such reservation in accordance with
    the purposes of this Act and further determines that the State
    agency as defined in section 3(s)(2) is capable of effectively
    and efficiently conducting such program, in light of the
    distance of the reservation from State agency-operated
    certification and issuance centers, the previous experience of
    such tribal organization in the operation of programs
    authorized under the Indian Self-Determination Act (25 U.S.C.
    450) and similar Acts of Congress, the tribal organization's
    management and fiscal capabilities, and the adequacy of
    measures taken by the tribal organization to ensure that there
    shall be no discrimination in the operation of the program on
    the basis of race, color, sex, or national origin, in which
    event such State agency shall be responsible for conducting
    such program and submitting for approval a plan of operation
    specifying the manner in which such program will be conducted.
    The Secretary, upon the request of a tribal organization, shall
    provide the designees of such organization with appropriate
    training and technical assistance to enable them to qualify as
    expeditiously as possible as a State agency pursuant to section
    3(s)(2). A State agency, as defined in section 3(s)(1), before
    it submits its plan of operation to the Secretary for the
    administration of the supplemental nutrition assistance program
    on all or part of an Indian reservation, shall consult in good
    faith with the tribal organization about that portion of the
    State's plan of operation pertaining to the implementation of
    the program for members of the tribe, and shall implement the
    program in a manner that is responsive to the needs of the
    Indians on the reservation as determined by ongoing
    consultation with the tribal organization.
      (e) The State plan of operation required under subsection (d)
    of this section shall provide, among such other provisions as
    may be required by regulation--
              (1) that the State agency shall--
                      (A) at the option of the State agency, inform
                    low-income households about the availability,
                    eligibility requirements, application
                    procedures, and benefits of the supplemental
                    nutrition assistance program; and
                      (B) comply with regulations of the Secretary
                    requiring the use of appropriate bilingual
                    personnel and printed material in the
                    administration of the program in those portions
                    of political subdivisions in the State in which
                    a substantial number of members of low-income
                    households speak a language other than English;
              (2)(A) that the State agency shall establish
            procedures governing the operation of supplemental
            nutrition assistance program offices that the State
            agency determines best serve households in the State,
            including households with special needs, such as
            households with elderly or disabled members, households
            in rural areas with low-income members, homeless
            individuals, households residing on reservations, and
            households in areas in which a substantial number of
            members of low-income households speak a language other
            than English.
              (B) In carrying out subparagraph (A), a State
            agency--
                      (i) shall provide timely, accurate, and fair
                    service to applicants for, and participants in,
                    the supplemental nutrition assistance program;
                      (ii)(I) shall develop an application
                    containing the information necessary to comply
                    with this Act; and
                      (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;
                      (iii) shall permit an applicant household to
                    apply to participate in the program on the same
                    day that the household first contacts a
                    supplemental nutrition assistance program
                    office in person during office hours;
                      (iv) shall consider an application that
                    contains the name, address, and signature of
                    the applicant to be filed on the date the
                    applicant submits the application;
                      (v) shall require that an adult
                    representative of each applicant household
                    certify in writing, under penalty of perjury,
                    that--
                              (I) the information contained in the
                            application is true; and
                              (II) all members of the household are
                            citizens or are aliens eligible to
                            receive supplemental nutrition
                            assistance program benefits under
                            section 6(f);
                      (vi) shall provide a method of certifying and
                    issuing benefits to eligible homeless
                    individuals, to ensure that participation in
                    the supplemental nutrition assistance program
                    is limited to eligible households; and
                      (vii) may establish operating procedures that
                    vary for local supplemental nutrition
                    assistance program offices to reflect regional
                    and local differences within the State.
                      (C) Electronic and automated systems.--
                              (i) In general.--Nothing in this Act
                            shall prohibit the use of signatures
                            provided and maintained electronically,
                            storage of records using automated
                            retrieval systems only, or any other
                            feature of a State agency's application
                            system that does not rely exclusively
                            on the collection and retention of
                            paper applications or other records.
                              (ii) State option for telephonic
                            signature.--A State agency may
                            establish a system by which an
                            applicant household may sign an
                            application through a recorded verbal
                            assent over the telephone.
                              (iii) Requirements.--A system
                            established under clause (ii) shall--
                                      (I) record for future
                                    reference the verbal assent of
                                    the household member and the
                                    information to which assent was
                                    given;
                                      (II) include effective
                                    safeguards against
                                    impersonation, identity theft,
                                    and invasions of privacy;
                                      (III) not deny or interfere
                                    with the right of the household
                                    to apply in writing;
                                      (IV) promptly provide to the
                                    household member a written copy
                                    of the completed application,
                                    with instructions for a simple
                                    procedure for correcting any
                                    errors or omissions;
                                      (V) comply with paragraph
                                    (1)(B);
                                      (VI) satisfy all requirements
                                    for a signature on an
                                    application under this Act and
                                    other laws applicable to the
                                    supplemental nutrition
                                    assistance program, with the
                                    date on which the household
                                    member provides verbal assent
                                    considered as the date of
                                    application for all purposes;
                                    and
                                      (VII) comply with such other
                                    standards as the Secretary may
                                    establish.
              (D) The signature of any adult under this paragraph
            shall be considered sufficient to comply with any
            provision of Federal law requiring a household member
            to sign an application or statement;
              (3) that the State agency shall thereafter promptly
            determine the eligibility of each applicant household
            by way of verification of income other than that
            determined to be excluded by section 5(d) of this Act
            (in part through the use of the information, if any,
            obtained under section 16(e) of this Act and after
            compliance with the requirement specified in paragraph
            (24)), household size (in any case such size is
            questionable), and such other eligibility factors as
            the Secretary determines to be necessary to implement
            sections 5 and 6 of this Act, although the State agency
            may verify prior to certification, whether questionable
            or not, the size of any applicant household and such
            other eligibility factors as the State agency
            determines are necessary, so as to complete
            certification of and provide an allotment retroactive
            to the period of application to any eligible household
            not later than thirty days following its filing of an
            application, and that the State agency shall provide
            each applicant household, at the time of application, a
            clear written statement explaining what acts the
            household must perform to cooperate in obtaining
            verification and otherwise completing the application
            process;
              (4) that the State agency shall insure that each
            participating household receive a notice of expiration
            of its certification prior to the start of the last
            month of its certification period advising the
            household that it must submit a new application in
            order to renew its eligibility for a new certification
            period and, further, that each such household which
            seeks to be certified another time or more times
            thereafter by filing an application for such
            recertification no later than fifteen days prior to the
            day upon which its existing certification period
            expires shall, if found to be still eligible, receive
            its allotment no later than one month after the receipt
            of the last allotment issued to it pursuant to its
            prior certification, but if such household is found to
            be ineligible or to be eligible for a smaller allotment
            during the new certification period it shall not
            continue to participate and receive benefits on the
            basis authorized for the preceding certification period
            even if it makes a timely request for a fair hearing
            pursuant to paragraph (10) of this subsection:
            Provided, That the timeliness standards for submitting
            the notice of expiration and filing an application for
            recertification may be modified by the Secretary in
            light of sections 5(f)(2) and 6(c) of this Act if
            administratively necessary;
              (5) the specific standards to be used in determining
            the eligibility of applicant households which shall be
            in accordance with sections 5 and 6 of this Act and
            shall include no additional requirements imposed by the
            State agency;
              (6) that--
                      (A) the State agency shall undertake the
                    certification of applicant households in
                    accordance with the general procedures
                    prescribed by the Secretary in the regulations
                    issued pursuant to this Act; and
                      (B) the State agency personnel utilized in
                    undertaking such certification shall be
                    employed in accordance with the current
                    standards for a Merit System of Personnel
                    Administration or any standards later
                    prescribed by the Office of Personnel
                    Management pursuant to section 208 of the
                    Intergovernmental Personnel Act of 1970
                    modifying or superseding such standards
                    relating to the establishment and maintenance
                    of personnel standards on a merit basis;
              (7) that an applicant household may be represented in
            the certification process and that an eligible
            household may be represented in benefit issuance or
            food purchase by a person other than a member of the
            household so long as that person has been clearly
            designated as the representative of that household for
            that purpose, by the head of the household or the
            spouse of the head, and, where the certification
            process is concerned, the representative is an adult
            who is sufficiently aware of relevant household
            circumstances, except that the Secretary may restrict
            the number of households which may be represented by an
            individual and otherwise establish criteria and
            verification standards for representation under this
            paragraph;
              (8) safeguards which prohibit the use or disclosure
            of information obtained from applicant households,
            except that--
                      (A) the safeguards shall permit--
                              (i) the disclosure of such
                            information to persons directly
                            connected with the administration or
                            enforcement of the provisions of this
                            Act, regulations issued pursuant to
                            this Act, Federal assistance programs,
                            or federally-assisted State programs;
                            and
                              (ii) the subsequent use of the
                            information by persons described in
                            clause (i) only for such administration
                            or enforcement;
                      (B) the safeguards shall not prevent the use
                    or disclosure of such information to the
                    Comptroller General of the United States for
                    audit and examination authorized by any other
                    provision of law;
                      (C) notwithstanding any other provision of
                    law, all information obtained under this Act
                    from an applicant household shall be made
                    available, upon request, to local, State or
                    Federal law enforcement officials for the
                    purpose of investigating an alleged violation
                    of this Act or any regulation issued under this
                    Act;
                      (D) the safeguards shall not prevent the use
                    by, or disclosure of such information, to
                    agencies of the Federal Government (including
                    the United States Postal Service) for purposes
                    of collecting the amount of an overissuance of
                    benefits, as determined under section 13(b) of
                    this Act, from Federal pay (including salaries
                    and pensions) as authorized pursuant to section
                    5514 of title 5 of the United States Code or a
                    Federal income tax refund as authorized by
                    section 3720A of title 31, United States Code;
                      (E) notwithstanding any other provision of
                    law, the address, social security number, and,
                    if available, photograph of any member of a
                    household shall be made available, on request,
                    to any Federal, State, or local law enforcement
                    officer if the officer furnishes the State
                    agency with the name of the member and notifies
                    the agency that--
                              (i) the member--
                                      (I) is fleeing to avoid
                                    prosecution, or custody or
                                    confinement after conviction,
                                    for a crime (or attempt to
                                    commit a crime) that, under the
                                    law of the place the member is
                                    fleeing, is a felony (or, in
                                    the case of New Jersey, a high
                                    misdemeanor), or is violating a
                                    condition of probation or
                                    parole imposed under Federal or
                                    State law; or
                                      (II) has information that is
                                    necessary for the officer to
                                    conduct an official duty
                                    related to subclause (I);
                              (ii) locating or apprehending the
                            member is an official duty; and
                              (iii) the request is being made in
                            the proper exercise of an official
                            duty; and
                      (F) the safeguards shall not prevent
                    compliance with paragraph (15) or (18)(B) or
                    subsection (u);
              (9) that the State agency shall--
                      (A) provide benefits no later than 7 days
                    after the date of application to any household
                    which--
                              (i)(I) has gross income that is less
                            than $150 per month; or
                              (II) is a destitute migrant or a
                            seasonal farmworker household in
                            accordance with the regulations
                            governing such households in effect
                            July 1, 1982; and
                              (ii) has liquid resources that do not
                            exceed $100;
                      (B) provide benefits no later than 7 days
                    after the date of application to any household
                    that has a combined gross income and liquid
                    resources that is less than the monthly rent,
                    or mortgage, and utilities of the household;
                    and
                      (C) to the extent practicable, verify the
                    income and liquid resources of a household
                    referred to in subparagraph (A) or (B) prior to
                    issuance of benefits to the household;
              (10) for the granting of a fair hearing and a prompt
            determination thereafter to any household aggrieved by
            the action of the State agency under any provision of
            its plan of operation as it affects the participation
            of such household in the supplemental nutrition
            assistance program or by a claim against the household
            for an overissuance: Provided, That any household which
            timely requests such a fair hearing after receiving
            individual notice of agency action reducing or
            terminating its benefits within the household's
            certification period shall continue to participate and
            receive benefits on the basis authorized immediately
            prior to the notice of adverse action until such time
            as the fair hearing is completed and an adverse
            decision rendered or until such time as the household's
            certification period terminates, whichever occurs
            earlier, except that in any case in which the State
            agency receives from the household a written statement
            containing information that clearly requires a
            reduction or termination of the household's benefits,
            the State agency may act immediately to reduce or
            terminate the household's benefits and may provide
            notice of its action to the household as late as the
            date on which the action becomes effective. At the
            option of a State, at any time prior to a fair hearing
            determination under this paragraph, a household may
            withdraw, orally or in writing, a request by the
            household for the fair hearing. If the withdrawal
            request is an oral request, the State agency shall
            provide a written notice to the household confirming
            the withdrawal request and providing the household with
            an opportunity to request a hearing;
              (11) upon receipt of a request from a household, for
            the prompt restoration in the form of benefits to a
            household of any allotment or portion thereof which has
            been wrongfully denied or terminated, except that
            allotments shall not be restored for any period of time
            more than one year prior to the date the State agency
            receives a request for such restoration from a
            household or the State agency is notified or otherwise
            discovers that a loss to a household has occurred;
              (12) for the submission of such reports and other
            information as from time to time may be required by the
            Secretary;
              (13) for indicators of expected performance in the
            administration of the program;
              (14) that the State agency shall specify a plan of
            operation for providing supplemental nutrition
            assistance program benefits for households that are
            victims of a disaster; that such plan shall include,
            but not be limited to, procedures for informing the
            public about the disaster program and how to apply for
            its benefits, coordination with Federal and private
            disaster relief agencies and local government
            officials, application procedures to reduce hardship
            and inconvenience and deter fraud, and instruction of
            caseworkers in procedures for implementing and
            operating the disaster program;
              (15) notwithstanding paragraph (8) of this
            subsection, for the immediate reporting to the
            Immigration and Naturalization Service by the State
            agency of a determination by personnel responsible for
            the certification or recertification of households that
            any member of a household is ineligible to receive
            supplemental nutrition assistance program benefits
            because that member is present in the United States in
            violation of the Immigration and Nationality Act;
              (16) at the option of the State agency, for the
            establishment and operation of an automatic data
            processing and information retrieval system that meets
            such conditions as the Secretary may prescribe and that
            is designed to provide efficient and effective
            administration of the supplemental nutrition assistance
            program;
              (17) at the option of the State agency, that
            information may be requested and exchanged for purposes
            of income and eligibility verification in accordance
            with a State system which meets the requirements of
            section 1137 of the Social Security Act and that any
            additional information available from agencies
            administering State unemployment compensation laws
            under the provisions of section 303(d) of the Social
            Security Act may be requested and utilized by the State
            agency described in section 3(s)(1) to the extent
            permitted under the provisions of section 303(d) of the
            Social Security Act;
              (18) that the State agency shall establish a system
            and take action on a periodic basis--
                      (A) to verify and otherwise ensure that an
                    individual does not receive benefits in more
                    than 1 jurisdiction within the State; and
                      (B) to verify and otherwise ensure that an
                    individual who is placed under detention in a
                    Federal, State, or local penal, correctional,
                    or other detention facility for more than 30
                    days shall not be eligible to participate in
                    the supplemental nutrition assistance program
                    as a member of any household, except that--
                              (i) the Secretary may determine that
                            extraordinary circumstances make it
                            impracticable for the State agency to
                            obtain information necessary to
                            discontinue inclusion of the
                            individual; and
                              (ii) a State agency that obtains
                            information collected under section
                            1611(e)(1)(I)(i)(I) of the Social
                            Security Act (42 U.S.C.
                            1382(e)(1)(I)(i)(I)) pursuant to
                            section 1611(e)(1)(I)(ii)(II) of that
                            Act (42 U.S.C. 1382(e)(1)(I)(ii)(II)),
                            or under another program determined by
                            the Secretary to be comparable to the
                            program carried out under that section,
                            shall be considered in compliance with
                            this subparagraph.
              (19) the plans of the State agency for carrying out
            employment and training programs under section 6(d)(4),
            including the nature and extent of such programs, the
            geographic areas and households to be covered under
            such program, the extent to which such programs will be
            carried out in coordination with the activities carried
            out under title I of the Workforce Innovation and
            Opportunity Act (29 U.S.C. 3111 et seq.), and the
            basis, including any cost information, for exemptions
            of categories and individuals and for the choice of
            employment and training program components reflected in
            the plans;
              (20) in a project area in which 5,000 or more
            households participate in the supplemental nutrition
            assistance program, for the establishment and operation
            of a unit for the detection of fraud in the
            supplemental nutrition assistance program, including
            the investigation, and assistance in the prosecution,
            of such fraud;
              (21) at the option of the State, for procedures
            necessary to obtain payment of uncollected overissuance
            of benefits from unemployment compensation pursuant to
            section 13(c);
              (22) the guidelines the State agency uses in carrying
            out section 6(i);
              (23) if a State elects to carry out a simplified
            supplemental nutrition assistance program under section
            26, the plans of the State agency for operating the
            program, including--
                      (A) the rules and procedures to be followed
                    by the State agency to determine supplemental
                    nutrition assistance program benefits;
                      (B) how the State agency will address the
                    needs of households that experience high
                    shelter costs in relation to the incomes of the
                    households; and
                      (C) a description of the method by which the
                    State agency will carry out a quality control
                    system under section 16(c);
              (24) that the State agency shall request wage data
            directly from the National Directory of New Hires
            established under section 453(i) of the Social Security
            Act (42 U.S.C. 653(i)) relevant to determining
            eligibility to receive supplemental nutrition
            assistance program benefits and determining the correct
            amount of those benefits at the time of certification;
              (25) if the State elects to carry out a program to
            contract with private establishments to offer meals at
            concessional prices, as described in paragraphs (3),
            (4), and (9) of section 3(k)--
                      (A) the plans of the State agency for
                    operating the program, including--
                              (i) documentation of a need that
                            eligible homeless, elderly, and
                            disabled clients are underserved in a
                            particular geographic area;
                              (ii) the manner by which the State
                            agency will limit participation to only
                            those private establishments that the
                            State determines necessary to meet the
                            need identified in clause (i); and
                              (iii) any other conditions the
                            Secretary may prescribe, such as the
                            level of security necessary to ensure
                            that only eligible recipients
                            participate in the program; and
                      (B) a report by the State agency to the
                    Secretary annually, the schedule of which shall
                    be established by the Secretary, that
                    includes--
                              (i) the number of households and
                            individual recipients authorized to
                            participate in the program, including
                            any information on whether the
                            individual recipient is elderly,
                            disabled, or homeless; and
                              (ii) an assessment of whether the
                            program is meeting an established need,
                            as documented under subparagraph
                            (A)(i); and
              (26) that for a household participating in the
            supplemental nutrition assistance program, the State
            agency shall pursue clarification and verification, if
            applicable, of information relating to the
            circumstances of the household received from data
            matches for the purpose of ensuring an accurate
            eligibility and benefit determination, only if the
            information--
                      (A) appears to present significantly
                    conflicting information from the information
                    that was used by the State agency at the time
                    of certification of the household;
                      (B) is obtained from data matches carried out
                    under subsection (q), (r), or (x); or
                      (C)(i) is less than 60 days old relative to
                    the current month of participation of the
                    household; and
                      (ii) if accurate, would have been required to
                    be reported by the household based on the
                    reporting requirements assigned to the
                    household by the State agency under section
                    6(c).
      (g) If the Secretary determines, upon information received by
    the Secretary, investigation initiated by the Secretary, or
    investigation that the Secretary shall initiate upon receiving
    sufficient information evidencing a pattern of lack of
    compliance by a State agency of a type specified in this
    subsection, that in the administration of the supplemental
    nutrition assistance program there is a failure by a State
    agency without good cause to comply with any of the provisions
    of this Act, the regulations issued pursuant to this Act, the
    State plan of operation submitted pursuant to subsection (d) of
    this section, the State plan for automated data processing
    submitted pursuant to subsection (o)(2) of this section, or the
    requirements established pursuant to section 23 of this Act,
    the Secretary shall immediately inform such State agency of
    such failure and shall allow the State agency a specified
    period of time for the correction of such failure. If the State
    agency does not correct such failure within that specified
    period, the Secretary may refer the matter to the Attorney
    General with a request that injunctive relief be sought to
    require compliance forthwith by the State agency and, upon suit
    by the Attorney General in an appropriate district court of the
    United States having jurisdiction of the geographic area in
    which the State agency is located and a showing that
    noncompliance has occurred, appropriate injunctive relief shall
    issue, and, whether or not the Secretary refers such matter to
    the Attorney General, the Secretary shall proceed to withhold
    from the State such funds authorized under sections 16(a),
    16(c), and 16(g) of this Act as the Secretary determines to be
    appropriate, subject to administrative and judicial review
    under section 14 of this Act.
      (h) If the Secretary determines that there has been
    negligence or fraud on the part of the State agency in the
    certification of applicant households, the State shall, upon
    request of the Secretary, deposit into the Treasury of the
    United States, a sum equal to the face value of any benefits
    issued as a result of such negligence or fraud.
      (i) Application and Denial Procedures.--
              (1) Application procedures.--Notwithstanding any
            other provision of law, households in which all members
            are applicants for or recipients of supplemental
            security income shall be informed of the availability
            of benefits under the supplemental nutrition assistance
            program and be assisted in making a simple application
            to participate in such program at the social security
            office and be certified for eligibility utilizing
            information contained in files of the Social Security
            Administration.
              (2) Denial and termination.--Except in a case of
            disqualification as a penalty for failure to comply
            with a public assistance program rule or regulation, no
            household shall have its application to participate in
            the supplemental nutrition assistance program denied
            nor its benefits under the supplemental nutrition
            assistance program terminated solely on the basis that
            its application to participate has been denied or its
            benefits have been terminated under any of the programs
            carried out under the statutes specified in the second
            sentence of section 5(a) and without a separate
            determination by the State agency that the household
            fails to satisfy the eligibility requirements for
            participation in the supplemental nutrition assistance
            program.
      (j)(1) Any individual who is an applicant for or recipient of
    supplemental security income or social security benefits (under
    regulations prescribed by the Secretary in conjunction with the
    Commissioner of Social Security) shall be informed of the
    availability of benefits under the supplemental nutrition
    assistance program and informed of the availability of a simple
    application to participate in such program at the social
    security office.
      (2) The Secretary and the Commissioner of Social Security
    shall revise the memorandum of understanding in effect on the
    date of enactment of the Food Security Act of 1985, regarding
    services to be provided in social security offices under this
    subsection and subsection (i), in a manner to ensure that--
              (A) applicants for and recipients of social security
            benefits are adequately notified in social security
            offices that assistance may be available to them under
            this Act;
              (B) applications for assistance under this Act from
            households in which all members are applicants for or
            recipients of supplemental security income will be
            forwarded immediately to the State agency in an
            efficient and timely manner; and
              (C) the Commissioner of Social Security receives from
            the Secretary reimbursement for costs incurred to
            provide such services.
      (k) Subject to the approval of the President, post offices in
    all or part of the State may provide, on request by the State
    agency, supplemental nutrition assistance program benefits to
    eligible households.
      (l) Whenever the ratio of a State's average supplemental
    nutrition assistance program participation in any quarter of a
    fiscal year to the State's total population in that quarter
    (estimated on the basis of the latest available population
    estimates as provided by the Department of Commerce, Bureau of
    the Census, Series P-25, Current Population Reports (or its
    successor series)) exceeds 60 per centum, the Office of the
    Inspector General of the Department of Agriculture shall
    immediately schedule a financial audit review of a sample of
    project areas within that State. Any financial audit review
    subsequent to the first such review, required under the
    preceding sentence, shall be conducted at the option of the
    Office of the Inspector General.
      (m) The Secretary shall provide for the use of fee agents in
    rural Alaska. As used in this subsection ``fee agent'' means a
    paid agent who, although not a State employee, is authorized by
    the State to make applications available to low-income
    households, assist in the completion of applications, conduct
    required interviews, secure required verification, forward
    completed applications and supporting documentation to the
    State agency, and provide other services as required by the
    State agency. Such services shall not include making final
    decisions on household eligibility or benefit levels.
      (n) The Secretary shall require State agencies to conduct
    verification and implement other measures where necessary, but
    no less often than annually, to assure that an individual does
    not receive both benefits and benefits or payments referred to
    in section 6(g) or both benefits and assistance provided in
    lieu of benefits under section 17(b)(1).
      (o)(1) The Secretary shall develop, after consultation with,
    and with the assistance of, an advisory group of State agencies
    appointed by the Secretary without regard to the provisions of
    chapter 10 of title 5, United States Code, a model plan for the
    comprehensive automation of data processing and computerization
    of information systems under the supplemental nutrition
    assistance program. The plan shall be developed and made
    available for public comment through publication of the
    proposed plan in the Federal Register not later than October 1,
    1986. The Secretary shall complete the plan, taking into
    consideration public comments received, not later than February
    1, 1987. The elements of the plan may include intake
    procedures, eligibility determinations and calculation of
    benefits, verification procedures, coordination with related
    Federal and State programs, the issuance of benefits,
    reconciliation procedures, the generation of notices, and
    program reporting. In developing the plan, the Secretary shall
    take into account automated data processing and information
    systems already in existence in States and shall provide for
    consistency with such systems.
      (2) Not later than October 1, 1987, each State agency shall
    develop and submit to the Secretary for approval a plan for the
    use of an automated data processing and information retrieval
    system to administer the supplemental nutrition assistance
    program in such State. The State plan shall take into
    consideration the model plan developed by the Secretary under
    paragraph (1) and shall provide time frames for completion of
    various phases of the State plan. If a State agency already has
    a sufficient automated data processing and information
    retrieval system, the State plan may, subject to the
    Secretary's approval, reflect the existing State system.
      (3) Not later than April 1, 1988, the Secretary shall prepare
    and submit to Congress an evaluation of the degree and
    sufficiency of each State's automated data processing and
    computerized information systems for the administration of the
    supplemental nutrition assistance program, including State
    plans submitted under paragraph (2). Such report shall include
    an analysis of additional steps needed for States to achieve
    effective and cost-efficient data processing and information
    systems. The Secretary, thereafter, shall periodically update
    such report.
      (4) Based on the Secretary's findings in such report
    submitted under paragraph (3), the Secretary may require a
    State agency, as necessary to rectify identified shortcomings
    in the administration of the supplemental nutrition assistance
    program in the State, except where such direction would
    displace State initiatives already under way, to take specified
    steps to automate data processing systems or computerize
    information systems for the administration of the supplemental
    nutrition assistance program in the State if the Secretary
    finds that, in the absence of such systems, there will be
    program accountability or integrity problems that will
    substantially affect the administration of the supplemental
    nutrition assistance program in the State.
      (5)(A) Subject to subparagraph (B), in the case of a plan for
    an automated data processing and information retrieval system
    submitted by a State agency to the Secretary under paragraph
    (2), such State agency shall--
              (i) commence implementation of its plan not later
            than October 1, 1988; and
              (ii) meet the time frames set forth in the plan.
      (B) The Secretary shall extend a deadline imposed under
    subparagraph (A) to the extent the Secretary deems appropriate
    based on the Secretary's finding of a good faith effort of a
    State agency to implement its plan in accordance with
    subparagraph (A).
      (p) State Verification Option.--In carrying out the
    supplemental nutrition assistance program, a State agency shall
    be required to use an immigration status verification system
    established under section 1137 of the Social Security Act (42
    U.S.C. 1320b-7), and an income and eligibility verification
    system, in accordance with standards set by the Secretary.
      (q) Denial of Benefits for Prisoners.--The Secretary shall
    assist States, to the maximum extent practicable, in
    implementing a system to conduct computer matches or other
    systems to prevent prisoners described in subsection (e)(18)(B)
    from participating in the supplemental nutrition assistance
    program as a member of any household.
      (r) Denial of Benefits for Deceased Individuals.--Each State
    agency shall--
              (1) enter into a cooperative arrangement with the
            Commissioner of Social Security, pursuant to the
            authority of the Commissioner under section 205(r)(3)
            of the Social Security Act (42 U.S.C. 405(r)(3)), to
            obtain information on individuals who are deceased; and
              (2) use the information to verify and otherwise
            ensure that benefits are not issued to individuals who
            are deceased.
      (s) Transitional Benefits Option.--
              (1) In general.--A State agency may provide
            transitional supplemental nutrition assistance program
            benefits--
                      (A) 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.); or
                      (B) at the option of the State, to a
                    household with children that ceases to receive
                    cash assistance under a State-funded public
                    assistance program.
              (2) Transitional benefits period.--Under paragraph
            (1), a household may receive transitional supplemental
            nutrition assistance program 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 supplemental nutrition assistance
            program 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.
      (t) Grants for Simplified Application and Eligibility
    Determination Systems and Improved Access to Benefits.--
              (1) In general.--Subject to the availability of
            appropriations under section 18(a), for each fiscal
            year, 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 implementsupplemental nutrition
            assistance program simplifiedapplication and
            eligibility determination systems.
              (2) Types of projects.--A project under paragraph (1)
            may consist of--
                      (A) coordinating application and eligibility
                    determination processes, including verification
                    practices, under the supplemental nutrition
                    assistance program and other Federal, State,
                    and local assistance programs;
                      (B) establishing enhanced technological
                    methods that improve the administrative
                    infrastructure used in processing applications
                    and determining eligibility; or
                      (C) 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
                    supplemental nutrition assistance 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.
      (u) Agreement for Direct Certification and Cooperation.--
              (1) In general.--Each State agency shall enter into
            an agreement with the State agency administering the
            school lunch program established under the Richard B.
            Russell National School Lunch Act (42 U.S.C. 1751 et
            seq.).
              (2) Contents.--The agreement shall establish
            procedures that ensure that--
                      (A) any child receiving benefits under this
                    Act shall be certified as eligible for free
                    lunches under the Richard B. Russell National
                    School Lunch Act (42 U.S.C. 1751 et seq.) and
                    free breakfasts under the Child Nutrition Act
                    of 1966 (42 U.S.C. 1771 et seq.), without
                    further application; and
                      (B) each State agency shall cooperate in
                    carrying out paragraphs (3)(F) and (4) of
                    section 9(b) of the Richard B. Russell National
                    School Lunch Act (42 U.S.C. 1758(b)).
      (v) Data Exchange Standards for Improved Interoperability.--
              (1) Designation.--The Secretary shall, in
            consultation with an interagency work group established
            by the Office of Management and Budget, and considering
            State government perspectives, designate data exchange
            standards to govern, under this Act--
                      (A) necessary categories of information that
                    State agencies operating related programs are
                    required under applicable law to electronically
                    exchange with another State agency; and
                      (B) Federal reporting and data exchange
                    required under applicable law.
              (2) Requirements.--The data exchange standards
            required by paragraph (1) shall, to the maximum extent
            practicable--
                      (A) incorporate a widely accepted,
                    nonproprietary, searchable, computer-readable
                    format, such as the eXtensible Markup Language;
                      (B) contain interoperable standards developed
                    and maintained by intergovernmental
                    partnerships, such as the National Information
                    Exchange Model;
                      (C) incorporate interoperable standards
                    developed and maintained by Federal entities
                    with authority over contracting and financial
                    assistance;
                      (D) be consistent with and implement
                    applicable accounting principles;
                      (E) be implemented in a manner that is cost-
                    effective and improves program efficiency and
                    effectiveness; and
                      (F) be capable of being continually upgraded
                    as necessary.
              (3) Rules of construction.--Nothing in this
            subsection requires a change to existing data exchange
            standards for Federal reporting found to be effective
            and efficient.
      (w) For households containing at least one adult, with no
    elderly or disabled members and with no earned income at their
    last certification or required report, a State agency shall, at
    the time of recertification, be required to advise members of
    the household not exempt under section 6(d)(2) regarding
    available employment and training services.
      (x) National Accuracy Clearinghouse.--
              (1) Definition of indication of multiple issuance.--
            In this subsection, the term ``indication of multiple
            issuance'' means an indication, based on a computer
            match, that supplemental nutrition assistance program
            benefits are being issued to an individual by more than
            1 State agency simultaneously.
              (2) Establishment.--
                      (A) In general.--The Secretary shall
                    establish an interstate data system, to be
                    known as the ``National Accuracy
                    Clearinghouse'', to prevent multiple issuances
                    of supplemental nutrition assistance program
                    benefits to an individual by more than 1 State
                    agency simultaneously.
                      (B) Data matching.--The Secretary shall
                    require that State agencies make available to
                    the National Accuracy Clearinghouse only such
                    information as is necessary for the purpose
                    described in subparagraph (A).
                      (C) Data protection.--The information made
                    available by State agencies under subparagraph
                    (B)--
                              (i) shall be used only for the
                            purpose described in subparagraph (A);
                              (ii) shall be exempt from the
                            disclosure requirements of section
                            552(a) of title 5 of the United States
                            Code pursuant to section 552(b)(3) of
                            title 5 of the United States Code, to
                            the extent such information is obtained
                            or received by the Secretary;
                              (iii) shall not be retained for
                            longer than is necessary to accomplish
                            the purpose in subparagraph (A);
                              (iv) shall be used in a manner that
                            protects the identity and location of a
                            vulnerable individual (including a
                            victim of domestic violence) that is an
                            applicant for, or recipient of,
                            supplemental nutrition assistance
                            program benefits; and
                              (v) shall meet security standards as
                            determined by the Secretary.
              (3) Issuance of interim final regulations.--Not later
            than 18 months after the date of enactment of the
            Agriculture Improvement Act of 2018, the Secretary
            shall promulgate regulations (which shall include
            interim final regulations) to carry out this subsection
            that--
                      (A) incorporate best practices and lessons
                    learned from the pilot program under section
                    4032(c) of the Agricultural Act of 2014 (7
                    U.S.C. 2036c(c));
                      (B) require a State agency to take
                    appropriate action, as determined by the
                    Secretary, with respect to each indication of
                    multiple issuance of supplemental nutrition
                    assistance program benefits, or each indication
                    that an individual receiving such benefits in 1
                    State has applied to receive such benefits in
                    another State, while ensuring timely and fair
                    service to applicants for, and recipients of,
                    such benefits;
                      (C) establish standards to limit and protect
                    the information submitted through or retained
                    by the National Accuracy Clearinghouse
                    consistent with paragraph (2)(C);
                      (D) establish safeguards to protect--
                              (i) the information submitted through
                            or retained by the National Accuracy
                            Clearinghouse, including by limiting
                            the period of time that information is
                            retained to the period necessary to
                            accomplish the purpose described in
                            paragraph (2)(A); and
                              (ii) the privacy of information that
                            is submitted through or retained by the
                            National Accuracy Clearinghouse
                            consistent with subsection (e)(8); and
                      (E) include such other rules and standards
                    the Secretary determines appropriate to carry
                    out this subsection.
              (4) Timing.--The initial match and corresponding
            actions required by paragraph (3)(B) shall occur within
            3 years after the date of the enactment of the
            Agriculture Improvement Act of 2018.
      (y) SNAP Staffing Flexibility.--
              (1) In general.--Notwithstanding section 11(e)(6)(B),
            a State agency (as defined in section 3 of the Food and
            Nutrition Act of 2008) may, by contract with the State
            agency at a reasonable cost in accordance with the
            State agency's standard contracting rules, hire a
            contractor to undertake supplemental nutrition
            assistance program certification or carry out any other
            function of the State agency under such program so long
            as--
                      (A) the contract does not provide incentives
                    for the agency or contractor to delay
                    eligibility determinations or to deny
                    eligibility for individuals otherwise eligible
                    for supplemental nutrition assistance program
                    benefits; and
                      (B) the contractor has no direct or indirect
                    financial interest in an approved retail store.
              (2) Use.--A State agency may use the authority
            provided in paragraph (1) when--
                      (A) the State experiences an inability to
                    timely process supplemental nutrition
                    assistance program applications from causes
                    that include but are not limited to--
                              (i) pandemics and other health
                            emergencies;
                              (ii) seasonal workforce cycles;
                              (iii) temporary staffing shortages;
                            and
                              (iv) weather or other natural
                            disasters;
                      (B) the State's payment error rate, as
                    defined in section 16, is greater than or equal
                    to 6 percent based on the most recent available
                    Department of Agriculture data; or
                      (C) the State experiences an increase in
                    supplemental nutrition assistance program
                    applications.
              (3) Requirements.--A State agency that hires a
            contractor under paragraph (1) shall ensure such
            action--
                      (A) is consistent with all principles under
                    section 900.603 of title 5 of the Code of
                    Federal Regulations; and
                      (B) is part of a blended workforce and does
                    not supplant existing merit-based personnel in
                    the State.
              (4) Notification.--A State agency shall notify the
            Secretary of its intent to use the authority provided
            in this section and shall provide any information or
            data supporting State agency increases in supplemental
            nutrition assistance program applications or any
            inability to timely process such applications.
              (5) Public availability.--Not later than 10 days
            after the date of the receipt of a notification
            submitted by a State agency under paragraph (4), the
            Secretary shall make publicly available on the website
            of the Department of Agriculture the notification
            submitted by such State agency and any accompanying
            information or data supporting such notification so
            submitted.
              (6) Program design.--Any action taken by a State
            agency under paragraph (1) shall not be--
                      (A) considered to be a major change in the
                    operations of such State agency for purposes of
                    section 11(a)(4) of this Act, or
                      (B) subject to any requirement specified in
                    such section.
              (7) Annual 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, an annual report
            that contains--
                      (A) a description of measures taken to
                    address increases in supplemental nutrition
                    assistance program applications and any
                    inability to timely process such applications;
                      (B) information or data supporting State
                    agency notifications provided pursuant to
                    paragraph (4); and
                      (C) recommendations for changes to the
                    Secretary's authority under this Act to assist
                    the Secretary, States, and local governments of
                    States in preparing for any future increases in
                    supplemental nutrition assistance program
                    applications or inability to timely process
                    such applications.
              (8) Temporary staffing shortages.--In cases of
            temporary staffing shortages, the authority provided to
            State agencies under paragraph (1) shall--
                      (A) expire when the backlog of supplemental
                    nutrition assistance program applications has
                    been eliminated;
                      (B) not override any collective bargaining
                    agreement or memorandum of understanding in
                    effect between the State and employees of the
                    State or of a local government of such State;
                    and
                      (C) expire when the error rate, as defined in
                    section 16, is less than 6 percent.

               *       *       *       *       *       *       *

                ADMINISTRATIVE COST-SHARING AND QUALITY CONTROL

      Sec. 16. (a) Subject to subsection (k), the Secretary is
    authorized to pay to each State agency, through fiscal year
    2026, 50 percent, and for fiscal year 2027 and each fiscal year
    thereafter, 25 percent, of all administrative costs involved in
    each State agency's operation of the supplemental nutrition
    assistance program, which costs shall include, but not be
    limited to, the cost of (1) the certification of applicant
    households, (2) the acceptance, storage, protection, control,
    and accounting of benefits after their delivery to receiving
    points within the State, (3) the issuance of benefits to all
    eligible households, (4) informational activities relating to
    the supplemental nutrition assistance program, including those
    undertaken under section 11(e)(1)(A), but not including
    recruitment activities designed to persuade an individual to
    apply forprogram benefits or that promote the program through
    television,radio, or billboard advertisements, (5) fair
    hearings, (6) automated data processing and information
    retrieval systems subject to the conditions set forth in
    subsection (g), (7) supplemental nutrition assistance program
    investigations and prosecutions, (8) implementing and operating
    the immigration status verification system established under
    section 1137(d) of the Social Security Act (42 U.S.C. 1320b-
    7(d)), and (9) establishing and operating alongitudinal
    database in accordance with section 17(n): Provided, That the
    Secretary is authorized at the Secretary's discretion to pay
    any State agency administering the supplemental nutrition
    assistance program on all or part of an Indian reservation
    under section 11(d) of this Act or in a Native village within
    the State of Alaska identified in section 11(b) of Public Law
    92-203, such amounts for administrative costs as the Secretary
    determines to be necessary for effective operation of the
    supplemental nutrition assistance program, as well as to permit
    each State to retain 35 percent of the value of all funds or
    allotments recovered or collected pursuant to sections 6(b) and
    13(c) and 20 percent of the value of any other funds or
    allotments recovered or collected, except the value of funds or
    allotments recovered or collected that arise from an error of a
    State agency. The officials responsible for making
    determinations of ineligibility under this Act shall not
    receive or benefit from revenues retained by the State under
    the provisions of this subsection.
      (b) Work Supplementation or Support Program.--
              (1) Definition of work supplementation or support
            program.--In this subsection, the term ``work
            supplementation or support program'' means a program
            under which, as determined by the Secretary, public
            assistance (including any benefits provided under a
            program established by the State and the supplemental
            nutrition assistance program) is provided to an
            employer to be used for hiring and employing a public
            assistance recipient who was not employed by the
            employer at the time the public assistance recipient
            entered the program.
              (2) Program.--A State agency may elect to use an
            amount equal to the allotment that would otherwise be
            issued to a household under the supplemental nutrition
            assistance program, but for the operation of this
            subsection, for the purpose of subsidizing or
            supporting a job under a work supplementation or
            support program established by the State.
              (3) Procedure.--If a State agency makes an election
            under paragraph (2) and identifies each household that
            participates in the supplemental nutrition assistance
            program that contains an individual who is
            participating in the work supplementation or support
            program--
                      (A) the Secretary shall pay to the State
                    agency an amount equal to the value of the
                    allotment that the household would be eligible
                    to receive but for the operation of this
                    subsection;
                      (B) the State agency shall expend the amount
                    received under subparagraph (A) in accordance
                    with the work supplementation or support
                    program in lieu of providing the allotment that
                    the household would receive but for the
                    operation of this subsection;
                      (C) for purposes of--
                              (i) sections 5 and 8(a), the amount
                            received under this subsection shall be
                            excluded from household income and
                            resources; and
                              (ii) section 8(b), the amount
                            received under this subsection shall be
                            considered to be the value of an
                            allotment provided to the household;
                            and
                      (D) the household shall not receive an
                    allotment from the State agency for the period
                    during which the member continues to
                    participate in the work supplementation or
                    support program.
              (4) Other work requirements.--No individual shall be
            excused, by reason of the fact that a State has a work
            supplementation or support program, from any work
            requirement under section 6(d), except during the
            periods in which the individual is employed under the
            work supplementation or support program.
              (5) Length of participation.--A State agency shall
            provide a description of how the public assistance
            recipients in the program shall, within a specific
            period of time, be moved from supplemented or supported
            employment to employment that is not supplemented or
            supported.
              (6) Displacement.--A work supplementation or support
            program shall not displace the employment of
            individuals who are not supplemented or supported.
      (c) Quality Control System.--
              (1) In general.--
                      (A) System.--
                              (i) In general.--In carrying out the
                            supplemental nutrition assistance
                            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.
                              (ii) Tolerance level for excluding
                            small errors.--The Secretary shall set
                            the tolerance level for excluding small
                            errors for the purposes of this
                            subsection--
                                      (I) for fiscal year 2014, at
                                    an amount not greater than $37;
                                    and
                                      (II) for each fiscal year
                                    thereafter, the amount
                                    specified in subclause (I)
                                    adjusted by the percentage by
                                    which the thrifty food plan is
                                    adjusted under section 3(u)(3)
                                    between June 30, 2013, and June
                                    30 of the immediately preceding
                                    fiscal year.
                      (B) Quality control system integrity.--
                              (i) In general.--Not later than 180
                            days after the date of enactment of the
                            Agriculture Improvement Act of 2018,
                            the Secretary shall issue interim final
                            regulations that--
                                      (I) ensure that the quality
                                    control system established
                                    under this subsection produces
                                    valid statistical results;
                                      (II) provide for oversight of
                                    contracts entered into by a
                                    State agency for the purpose of
                                    improving payment accuracy;
                                      (III) ensure the accuracy of
                                    data collected under the
                                    quality control system
                                    established under this
                                    subsection; and
                                      (IV) for each fiscal year, to
                                    the maximum extent practicable,
                                    provide for the evaluation of
                                    the integrity of the quality
                                    control process of not fewer
                                    than 2 State agencies, selected
                                    in accordance with criteria
                                    determined by the Secretary.
                              (ii) Debarment.--In accordance with
                            the nonprocurement debarment procedures
                            under part 417 of title 2, Code of
                            Federal Regulations, or successor
                            regulations, the Secretary shall debar
                            any person that, in carrying out the
                            quality control system established
                            under this subsection, knowingly
                            submits, or causes to be submitted,
                            false information to the Secretary.
                      (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) 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 supplemental nutrition
                            assistance program (referred to in this
                            paragraph as the ``new investment
                            amount''), which new investment amount
                            shall not be matched by Federal funds;
                              (II) 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
                              (III) take any combination of the
                            actions described in subclauses (I) and
                            (II); or
                              (ii) make the determinations
                            described in clause (i) and enter into
                            a settlement with the State agency,
                            only with respect to any 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)(II) 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)(I) 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)(I), 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)(I), 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
                                    supplemental nutrition
                                    assistance 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) As used in this section--
              (A) the term ``payment error rate'' means the sum of
            the point estimates of an overpayment error rate and an
            underpayment error rate determined by the Secretary
            from data collected in a probability sample of
            participating households;
              (B) the term ``overpayment error rate'' means the
            percentage of the value of all allotments issued in a
            fiscal year by a State agency that are either--
                      (i) issued to households that fail to meet
                    basic program eligibility requirements; or
                      (ii) overissued to eligible households; and
              (C) the term ``underpayment error rate'' means the
            ratio of the value of allotments underissued to
            recipient households to the total value of allotments
            issued in a fiscal year by a State agency.
      (3) The following errors may be measured for management
    purposes but shall not be included in the payment error rate:
              (A) Any errors resulting in the application of new
            regulations promulgated under this Act during the first
            120 days from the required implementation date for such
            regulations.
              (B) Errors resulting from the use by a State agency
            of correctly processed information concerning
            households or individuals received from Federal
            agencies or from actions based on policy information
            approved or disseminated, in writing, by the Secretary
            or the Secretary's designee.
              (4) Reporting requirements.--The Secretary may
            require a State agency to report any factors that the
            Secretary considers necessary, including providing
            access to applicable State records and the entire
            information systems in which the records are contained,
            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). If a State agency fails
            to meet the reporting requirements established by the
            Secretary, the Secretary shall base the determination
            on all pertinent information available to the
            Secretary.
              (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). The
            Secretary shall initiate efforts to collect the amount
            owed by the State agency as a claim established under
            paragraph (1) for a fiscal year, subject to the
            conclusion of any formal or informal appeal procedure
            and administrative or judicial review under section 14
            (as provided for in paragraph (7)), before the end of
            the fiscal year following such fiscal year.
              (6) National performance measure for payment error
            rates.--
                      (A) Announcement.--At the time the Secretary
                    makes the notification to State agencies of
                    their error rates, the Secretary shall also
                    announce a national performance measure that
                    shall be the sum of the products of each State
                    agency's error rate as developed for the
                    notifications under paragraph (8) times that
                    State agency's proportion of the total value of
                    national allotments issued for the fiscal year
                    using the most recent issuance data available
                    at the time of the notifications issued
                    pursuant to paragraph (8).
                      (B) Use of alternative measure of state
                    error.--Where a State fails to meet reporting
                    requirements pursuant to paragraph (4), the
                    Secretary may use another measure of a State's
                    error developed pursuant to paragraph (8), to
                    develop the national performance measure.
                      (C) Use of national performance measure.--The
                    announced national performance measure shall be
                    used in determining the liability amount of a
                    State under paragraph (1)(C) for the fiscal
                    year whose error rates are being announced
                    under paragraph (8).
                      (D) No administrative or judicial review.--
                    The national performance measure announced
                    under this paragraph shall not be subject to
                    administrative or judicial review.
              (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
                    a State agency under paragraph (1), the State
                    may seek administrative and judicial review of
                    the action pursuant to section 14.
                      (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.
      (8)(A) This paragraph applies to the determination of whether
    a payment is due by a State agency for a fiscal year under
    paragraph (1).
      (B) Not later than the first May 31 after the end of the
    fiscal year referred to in subparagraph (A), the case review
    and all arbitrations of State-Federal difference cases shall be
    completed.
      (C) Not later than the first June 30 after the end of the
    fiscal year referred to in subparagraph (A), the Secretary
    shall--
              (i) determine final error rates, the national average
            payment error rate, and the amounts of payment claimed
            against State agencies or liability amount established
            with respect to State agencies;
              (ii) notify State agencies of the payment claims or
            liability amounts; and
              (iii) provide a copy of the document providing
            notification under clause (ii) to the chief executive
            officer and the legislature of the State.
      (D) A State agency desiring to appeal a payment claim or
    liability amount determined under subparagraph (C) shall submit
    to an administrative law judge--
              (i) a notice of appeal, not later than 10 days after
            receiving a notice of the claim or liability amount;
            and
              (ii) evidence in support of the appeal of the State
            agency, not later than 60 days after receiving a notice
            of the claim or liability amount.
      (E) Not later than 60 days after a State agency submits
    evidence in support of the appeal, the Secretary shall submit
    responsive evidence to the administrative law judge to the
    extent such evidence exists.
      (F) Not later than 30 days after the Secretary submits
    responsive evidence, the State agency shall submit rebuttal
    evidence to the administrative law judge to the extent such
    evidence exists.
      (G) The administrative law judge, after an evidentiary
    hearing, shall decide the appeal--
              (i) not later than 60 days after receipt of rebuttal
            evidence submitted by the State agency; or
              (ii) if the State agency does not submit rebuttal
            evidence, not later than 90 days after the State agency
            submits the notice of appeal and evidence in support of
            the appeal.
      (H) In considering a claim or liability amount under this
    paragraph, the administrative law judge shall consider all
    grounds for denying the claim or liability amount, in whole or
    in part, including the contention of a State agency that the
    claim or liability amount should be waived, in whole or in
    part, for good cause.
      (I) The deadlines in subparagraphs (D), (E), (F), and (G)
    shall be extended by the administrative law judge for cause
    shown.
              (9) Report on all identified payment errors.--
                      (A) In general.--The Secretary shall include
                    all identified payment errors, including small
                    errors under paragraph (1)(A)(ii), regardless
                    of dollar amount, in a supplemental section of
                    the annual payment error rate measurement
                    report for the supplemental nutrition
                    assistance program.
                      (B) Rule of construction.--The information
                    reported under subparagraph (A) shall not
                    alter, modify, or affect the calculation of the
                    tolerance level for excluding small errors
                    under paragraph (1)(A)(ii).
      [(9)] (10) As used in this subsection, the term ``good
    cause'' includes--
              (A) a natural disaster or civil disorder that
            adversely affects supplemental nutrition assistance
            program operations;
              (B) a strike by employees of a State agency who are
            necessary for the determination of eligibility and
            processing of case changes under the supplemental
            nutrition assistance program;
              (C) a significant growth in the caseload under the
            supplemental nutrition assistance program in a State
            prior to or during a fiscal year, such as a 15 percent
            growth in caseload;
              (D) a change in the supplemental nutrition assistance
            program or other Federal or State program that has a
            substantial adverse impact on the management of the
            supplemental nutrition assistance program of a State;
            and
              (E) a significant circumstance beyond the control of
            the State agency.
      (d) State Performance Indicators.--
              (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 through 2017.--
                      (A) Regulations.--With respect to fiscal year
                    2005 through fiscal year 2017, 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 through fiscal year 2017,
                    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.
              (5) Use of performance bonus payments.--A State
            agency may use a performance bonus payment received
            under this subsection only to carry out the program
            established under this Act, including investments in--
                      (A) technology;
                      (B) improvements in administration and
                    distribution; and
                      (C) actions to prevent fraud, waste, and
                    abuse.
              (6) Fiscal year 2018 and fiscal years thereafter.--
                      (A) With respect to fiscal year 2018 and each
                    fiscal year thereafter, the Secretary shall
                    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.
                      (B) The Secretary shall not award performance
                    bonus payments to State agencies in fiscal year
                    2019 for fiscal year 2018 performance.
      (e) The Secretary and State agencies shall (1) require, as a
    condition of eligibility for participation in the supplemental
    nutrition assistance program, that each household member
    furnish to the State agency their social security account
    number (or numbers, if they have more than one number), and (2)
    use such account numbers in the administration of the
    supplemental nutrition assistance program. The Secretary and
    State agencies shall have access to the information regarding
    individual supplemental nutrition assistance program applicants
    and participants who receive benefits under title XVI of the
    Social Security Act that has been provided to the Commissioner
    of Social Security, but only to the extent that the Secretary
    and the Commissioner of Social Security determine necessary for
    purposes of determining or auditing a household's eligibility
    to receive assistance or the amount thereof under the
    supplemental nutrition assistance program, or verifying
    information related thereto.
      (f) Notwithstanding any other provision of law, counsel may
    be employed and counsel fees, court costs, bail, and other
    expenses incidental to the defense of officers and employees of
    the Department of Agriculture may be paid in judicial or
    administrative proceedings to which such officers and employees
    have been made parties and that arise directly out of their
    performance of duties under this Act.
      (g) Cost Sharing for Computerization.--
              (1) In general.--Except as provided in paragraph (2),
            the Secretary is authorized to pay to each State agency
            the amount provided under subsection (a)(6) for the
            costs incurred by the State agency in the--
                      (A) planning, design, development, or
                    installation of 1 or more automatic data
                    processing and information retrieval systems
                    that the Secretary determines----
                              (i) would assist in meeting the
                            requirements of this Act;
                              (ii) meet such conditions as the
                            Secretary prescribes;
                              (iii) are likely to provide more
                            efficient and effective administration
                            of the supplemental nutrition
                            assistance program;
                              (iv) would be compatible with other
                            systems used in the administration of
                            State programs, including the program
                            funded under part A of title IV of the
                            Social Security Act (42 U.S.C. 601 et
                            seq.);
                              (v) would be tested adequately before
                            and after implementation, including a
                            requirement that--
                                      (I) such testing shall be
                                    accomplished throughpilot
                                    projects in limited areas for
                                    major systemschanges (as
                                    determined under rules
                                    promulgatedby the Secretary);
                                      (II) each pilot project
                                    described in subclause(I) that
                                    is carried out before the
                                    implementationof a system shall
                                    be conducted in a live-
                                    productionenvironment; and
                                      (III) the data resulting from
                                    each pilot projectcarried out
                                    under this clause shall be
                                    thoroughly evaluated before the
                                    Secretary approves the system
                                    to be implemented more broadly;
                              (vi) would be operated in accordance
                            with an adequate plan for--
                                      (I) continuous updating to
                                    reflect changed policy and
                                    circumstances; and
                                      (II) testing the effect of
                                    the system on access for
                                    eligible households and on
                                    payment accuracy; and
                              (vii) would be accessible by the
                            Secretary forinspection and audit under
                            section 11(a)(3)(B); and
                      (B) operation of 1 or more automatic data
                    processingand information retrieval systems
                    that the Secretary determinesmay continue to be
                    operated in accordance withclauses (i) through
                    (vii) of subparagraph (A).
              (2) Limitation.--The Secretary shall not make
            payments to a State agency under paragraph (1) to the
            extent that the State agency--
                      (A) is reimbursed for the costs under any
                    other Federal program; or
                      (B) uses the systems for purposes not
                    connected with the supplemental nutrition
                    assistance program.
      (h) Funding of Employment and Training Programs.--
              (1) In general.--
                      (A) Amounts.--To carry out employment and
                    training programs, the Secretary shall reserve
                    for allocation to State agencies, to remain
                    available for 24 months, from funds made
                    available for each fiscal year under section
                    18(a)(1), $103,900,000 for each fiscal year.
                      (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).
                      (C) Reallocation.--
                              (i) In general.--If a State agency
                            will not expend all of the funds
                            allocated to the State agency for a
                            fiscal year under subparagraph (B), the
                            Secretary, subject to clauses (ii)
                            through (v), shall reallocate the
                            unexpended funds to other States
                            (during the fiscal year or the
                            subsequent fiscal year) as the
                            Secretary considers appropriate and
                            equitable.
                              (ii) Timing.--The Secretary shall
                            collect such information as the
                            Secretary determines to be necessary
                            about the expenditures and anticipated
                            expenditures by the State agencies of
                            the funds initially allocated to the
                            State agencies under subparagraph (A)
                            to make reallocations of unexpended
                            funds under clause (i) within a
                            timeframe that allows each State agency
                            to which funds are reallocated at least
                            270 days to expend the reallocated
                            funds.
                              (iii) Opportunity.--The Secretary
                            shall ensure that all State agencies
                            have an opportunity to obtain
                            reallocated funds.
                              (iv) Priority.--The Secretary shall
                            reallocate funds under this
                            subparagraph as follows:
                                      (I)(aa) Subject to items (bb)
                                    and (cc), not less than 50
                                    percent shall be reallocated to
                                    State agencies requesting such
                                    funds to conduct employment and
                                    training programs and
                                    activities for which such State
                                    agencies had previously
                                    received funding under
                                    subparagraph (F)(viii) that the
                                    Secretary determines have the
                                    most demonstrable impact on the
                                    ability of participants to find
                                    and retain employment that
                                    leads to increased household
                                    income and reduced reliance on
                                    public assistance.
                                      (bb) The Secretary shall base
                                    the determination under item
                                    (aa) on--
                                              (AA) project results
                                            from the independent
                                            evaluations conducted
                                            under subparagraph
                                            (F)(vii)(I); or
                                              (BB) if the project
                                            results from the
                                            independent evaluations
                                            conducted under
                                            subparagraph
                                            (F)(vii)(I) are not yet
                                            available, the reports
                                            under subparagraph
                                            (F)(vii)(II) or other
                                            information relating to
                                            performance of the
                                            programs and activities
                                            funded under
                                            subparagraph (F)(viii).
                                      (cc) Employment and training
                                    activities funded under this
                                    subclause are not subject to
                                    subparagraph (F)(vii), but are
                                    subject to monitoring under
                                    paragraph (h)(5).
                                      (II) Not less than 30 percent
                                    shall be reallocated to State
                                    agencies requesting such funds
                                    to implement or continue
                                    employment and training
                                    programs and activities under
                                    section 6(d)(4)(B)(i) that the
                                    Secretary determines have the
                                    most demonstrable impact on the
                                    ability of participants to find
                                    and retain employment that
                                    leads to increased household
                                    income and reduced reliance on
                                    public assistance, including
                                    programs and activities that
                                    are targeted to--
                                              (aa) individuals 50
                                            years of age or older;
                                              (bb) formerly
                                            incarcerated
                                            individuals;
                                              (cc) individuals
                                            participating in a
                                            substance abuse
                                            treatment program;
                                              (dd) homeless
                                            individuals;
                                              (ee) people with
                                            disabilities seeking to
                                            enter the workforce;
                                              (ff) other
                                            individuals with
                                            substantial barriers to
                                            employment; or
                                              (gg) households
                                            facing multi-
                                            generational poverty,
                                            to support employment
                                            and workforce
                                            participation through
                                            an integrated and
                                            family-focused approach
                                            in providing supportive
                                            services.
                                      (III) The Secretary shall
                                    reallocate any remaining funds
                                    available under this
                                    subparagraph, to State agencies
                                    requesting such funds to use
                                    for employment and training
                                    programs and activities that
                                    the Secretary determines have
                                    the most demonstrable impact on
                                    the ability of participants to
                                    find and retain employment that
                                    leads to increased household
                                    income and reduced reliance on
                                    public assistance under section
                                    6(d)(4)(B)(i).
                              (v) Consideration.--In reallocating
                            funds under this subparagraph, a State
                            agency that receives reallocated funds
                            under clause (iv)(I) may also be
                            considered for reallocated funding
                            under clause (iv)(II).
                      (D) Minimum allocation.--Notwithstanding
                    subparagraph (B), the Secretary shall ensure
                    that each State agency operating an employment
                    and training program shall receive not less
                    than $100,000 for each fiscal year.
                      (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
                            fiscal year to reimburse a State agency
                            that is eligible under clause (ii) for
                            the costs incurred in serving members
                            of households receiving supplemental
                            nutrition assistance program benefits
                            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).
                      (F) Pilot projects to reduce dependency and
                    increase work requirements and work effort
                    under supplemental nutrition assistance
                    program.--
                              (i) Pilot projects required.--
                                      (I) In general.--The
                                    Secretary shall carry out pilot
                                    projects under which State
                                    agencies shall enter into
                                    cooperative agreements with the
                                    Secretary to develop and test
                                    methods, including operating
                                    work programs with certain
                                    features comparable to the
                                    program of block grants to
                                    States for temporary assistance
                                    for needy families established
                                    under part A of title IV of the
                                    Social Security Act (42 U.S.C.
                                    601 et seq.), for employment
                                    and training programs and
                                    services to raise the number of
                                    work registrants under section
                                    6(d) of this Act who obtain
                                    unsubsidized employment,
                                    increase the earned income of
                                    the registrants, and reduce the
                                    reliance of the registrants on
                                    public assistance, so as to
                                    reduce the need for
                                    supplemental nutrition
                                    assistance benefits.
                                      (II) Requirements.--Pilot
                                    projects shall--
                                              (aa) meet such terms
                                            and conditions as the
                                            Secretary considers to
                                            be appropriate; and
                                              (bb) except as
                                            otherwise provided in
                                            this subparagraph, be
                                            in accordance with the
                                            requirements of
                                            sections 6(d) and 20.
                              (ii) Selection criteria.--
                                      (I) In general.--The
                                    Secretary shall select pilot
                                    projects under this
                                    subparagraph in accordance with
                                    the criteria established under
                                    this clause and additional
                                    criteria established by the
                                    Secretary.
                                      (II) Qualifying criteria.--To
                                    be eligible to participate in a
                                    pilot project, a State agency
                                    shall--
                                              (aa) agree to
                                            participate in the
                                            evaluation described in
                                            clause (vii), including
                                            providing evidence that
                                            the State has a robust
                                            data collection system
                                            for program
                                            administration and
                                            cooperating to make
                                            available State data on
                                            the employment
                                            activities and post-
                                            participation
                                            employment, earnings,
                                            and public benefit
                                            receipt of participants
                                            to ensure proper and
                                            timely evaluation;
                                              (bb) commit to
                                            collaborate with the
                                            State workforce board
                                            and other job training
                                            programs in the State
                                            and local area; and
                                              (cc) commit to
                                            maintain at least the
                                            amount of State funding
                                            for employment and
                                            training programs and
                                            services under
                                            paragraphs (2) and (3)
                                            and under section 20 as
                                            the State expended for
                                            fiscal year 2013.
                                      (III) Selection criteria.--In
                                    selecting pilot projects, the
                                    Secretary shall--
                                              (aa) consider the
                                            degree to which the
                                            pilot project would
                                            enhance existing
                                            employment and training
                                            programs in the State;
                                              (bb) consider the
                                            degree to which the
                                            pilot project would
                                            enhance the employment
                                            and earnings of program
                                            participants;
                                              (cc) consider whether
                                            there is evidence that
                                            the pilot project could
                                            be replicated easily by
                                            other States or
                                            political subdivisions;
                                              (dd) consider whether
                                            the State agency has a
                                            demonstrated capacity
                                            to operate high quality
                                            employment and training
                                            programs; and
                                              (ee) ensure the pilot
                                            projects, when
                                            considered as a group,
                                            test a range of
                                            strategies, including
                                            strategies that--
                                                      (AA) target
                                                    individuals
                                                    with low skills
                                                    or limited work
                                                    experience,
                                                    individuals
                                                    subject to the
                                                    requirements
                                                    under section
                                                    6(o), and
                                                    individuals who
                                                    are working;
                                                      (BB) are
                                                    located in a
                                                    range of
                                                    geographic
                                                    areas and
                                                    States,
                                                    including rural
                                                    and urban
                                                    areas;
                                                      (CC)
                                                    emphasize
                                                    education and
                                                    training,
                                                    rehabilitative
                                                    services for
                                                    individuals
                                                    with barriers
                                                    to employment,
                                                    rapid
                                                    attachment to
                                                    employment, and
                                                    mixed
                                                    strategies; and
                                                      (DD) test
                                                    programs that
                                                    assign work
                                                    registrants to
                                                    mandatory and
                                                    voluntary
                                                    participation
                                                    in employment
                                                    and training
                                                    activities.
                              (iii) Accountability.--
                                      (I) In general.--The
                                    Secretary shall establish and
                                    implement a process to
                                    terminate a pilot project for
                                    which the State has failed to
                                    meet the criteria described in
                                    clause (ii) or other criteria
                                    established by the Secretary.
                                      (II) Timing.--The process
                                    shall include a reasonable time
                                    period, not to exceed 180 days,
                                    for State agencies found
                                    noncompliant to correct the
                                    noncompliance.
                              (iv) Employment and training
                            activities.--Allowable programs and
                            services carried out under this
                            subparagraph shall include those
                            programs and services authorized under
                            this Act and employment and training
                            activities authorized under the program
                            of block grants to States for temporary
                            assistance for needy families
                            established under part A of title IV of
                            the Social Security Act (42 U.S.C. 601
                            et seq.), including:
                                      (I) Employment in the public
                                    or private sector that is not
                                    subsidized by any public
                                    program.
                                      (II) Employment in the
                                    private sector for which the
                                    employer receives a subsidy
                                    from public funds to offset all
                                    or a part of the wages and
                                    costs of employing an adult.
                                      (III) Employment in the
                                    public sector for which the
                                    employer receives a subsidy
                                    from public funds to offset all
                                    or a part of the wages and
                                    costs of employing an adult.
                                      (IV) A work activity that--
                                              (aa) is performed in
                                            return for public
                                            benefits;
                                              (bb) provides an
                                            adult with an
                                            opportunity to acquire
                                            the general skills,
                                            knowledge, and work
                                            habits necessary to
                                            obtain employment;
                                              (cc) is designed to
                                            improve the
                                            employability of those
                                            who cannot find
                                            unsubsidized
                                            employment; and
                                              (dd) is supervised by
                                            an employer, work site
                                            sponsor, or other
                                            responsible party on an
                                            ongoing basis.
                                      (V) Training in the public or
                                    private sector that--
                                              (aa) is given to a
                                            paid employee while the
                                            employee is engaged in
                                            productive work; and
                                              (bb) provides
                                            knowledge and skills
                                            essential to the full
                                            and adequate
                                            performance of the job.
                                      (VI) Job search, obtaining
                                    employment, or preparation to
                                    seek or obtain employment,
                                    including--
                                              (aa) life skills
                                            training;
                                              (bb) substance abuse
                                            treatment or mental
                                            health treatment,
                                            determined to be
                                            necessary and
                                            documented by a
                                            qualified medical,
                                            substance abuse, or
                                            mental health
                                            professional; and
                                              (cc) rehabilitation
                                            activities, supervised
                                            by a public agency or
                                            other responsible party
                                            on an ongoing basis.
                                      (VII) Structured programs and
                                    embedded activities--
                                              (aa) in which adults
                                            perform work for the
                                            direct benefit of the
                                            community under the
                                            auspices of public or
                                            nonprofit
                                            organizations;
                                              (bb) that are limited
                                            to projects that serve
                                            useful community
                                            purposes in fields such
                                            as health, social
                                            service, environmental
                                            protection, education,
                                            urban and rural
                                            redevelopment, welfare,
                                            recreation, public
                                            facilities, public
                                            safety, and child care;
                                              (cc) that are
                                            designed to improve the
                                            employability of adults
                                            not otherwise able to
                                            obtain unsubsidized
                                            employment;
                                              (dd) that are
                                            supervised on an
                                            ongoing basis; and
                                              (ee) with respect to
                                            which a State agency
                                            takes into account, to
                                            the maximum extent
                                            practicable, the prior
                                            training, experience,
                                            and skills of a
                                            recipient in making
                                            appropriate community
                                            service assignments.
                                      (VIII) Career and technical
                                    training programs that are--
                                              (aa) directly related
                                            to the preparation of
                                            adults for employment
                                            in current or emerging
                                            occupations; and
                                              (bb) supervised on an
                                            ongoing basis.
                                      (IX) Training or education
                                    for job skills that are--
                                              (aa) required by an
                                            employer to provide an
                                            adult with the ability
                                            to obtain employment or
                                            to advance or adapt to
                                            the changing demands of
                                            the workplace; and
                                              (bb) supervised on an
                                            ongoing basis.
                                      (X) Education that is--
                                              (aa) related to a
                                            specific occupation,
                                            job, or job offer; and
                                              (bb) supervised on an
                                            ongoing basis.
                                      (XI) In the case of an adult
                                    who has not completed secondary
                                    school or received a
                                    certificate of general
                                    equivalence, regular attendance
                                    that is--
                                              (aa) in accordance
                                            with the requirements
                                            of the secondary school
                                            or course of study, at
                                            a secondary school or
                                            in a course of study
                                            leading to a
                                            certificate of general
                                            equivalence; and
                                              (bb) supervised on an
                                            ongoing basis.
                                      (XII) Providing child care to
                                    enable another recipient of
                                    public benefits to participate
                                    in a community service program
                                    that--
                                              (aa) does not provide
                                            compensation for the
                                            community service;
                                              (bb) is a structured
                                            program designed to
                                            improve the
                                            employability of adults
                                            who participate in the
                                            program; and
                                              (cc) is supervised on
                                            an ongoing basis.
                              (v) Sanctions.--Subject to clause
                            (vi), no work registrant shall be
                            eligible to participate in the
                            supplemental nutrition assistance
                            program if the individual refuses
                            without good cause to participate in an
                            employment and training program under
                            this subparagraph, to the extent
                            required by the State agency.
                              (vi) Standards.--
                                      (I) In general.--Employment
                                    and training activities under
                                    this subparagraph shall be
                                    considered to be carried out
                                    under section 6(d), including
                                    for the purpose of satisfying
                                    any conditions of participation
                                    and duration of ineligibility.
                                      (II) Standards for certain
                                    employment activities.--The
                                    Secretary shall establish
                                    standards for employment
                                    activities described in
                                    subclauses (I), (II), and (III)
                                    of clause (iv) that ensure that
                                    failure to work for reasons
                                    beyond the control of an
                                    individual, such as involuntary
                                    reduction in hours of
                                    employment, shall not result in
                                    ineligibility.
                                      (III) Participation in other
                                    programs.--Before assigning a
                                    work registrant to mandatory
                                    employment and training
                                    activities, a State agency
                                    shall--
                                              (aa) assess whether
                                            the work registrant is
                                            participating in
                                            substantial employment
                                            and training activities
                                            outside of the pilot
                                            project that are
                                            expected to result in
                                            the work registrant
                                            gaining increased
                                            skills, training, work,
                                            or experience
                                            consistent with the
                                            objectives of the pilot
                                            project; and
                                              (bb) if determined to
                                            be acceptable, count
                                            hours engaged in the
                                            activities toward any
                                            minimum participation
                                            requirement.
                              (vii) Evaluation and reporting.--
                                      (I) Independent evaluation.--
                                              (aa) In general.--The
                                            Secretary shall, under
                                            such terms and
                                            conditions as the
                                            Secretary determines to
                                            be appropriate, conduct
                                            for each State agency
                                            that enters into a
                                            cooperative agreement
                                            under clause (i) an
                                            independent
                                            longitudinal evaluation
                                            of each pilot project
                                            of the State agency
                                            under this
                                            subparagraph, with
                                            results reported not
                                            less frequently than in
                                            consecutive 12-month
                                            increments.
                                              (bb) Purpose.--The
                                            purpose of the
                                            independent evaluation
                                            shall be to measure the
                                            impact of employment
                                            and training programs
                                            and services provided
                                            by each State agency
                                            under the pilot
                                            projects on the ability
                                            of adults in each pilot
                                            project target
                                            population to find and
                                            retain employment that
                                            leads to increased
                                            household income and
                                            reduced reliance on
                                            public assistance, as
                                            well as other measures
                                            of household well-
                                            being, compared to what
                                            would have occurred in
                                            the absence of the
                                            pilot project.
                                              (cc) Methodology.--
                                            The independent
                                            evaluation shall use
                                            valid statistical
                                            methods that can
                                            determine, for each
                                            pilot project, the
                                            difference, if any,
                                            between supplemental
                                            nutrition assistance
                                            and other public
                                            benefit receipt
                                            expenditures,
                                            employment, earnings
                                            and other impacts as
                                            determined by the
                                            Secretary--
                                                      (AA) as a
                                                    result of the
                                                    employment and
                                                    training
                                                    programs and
                                                    services
                                                    provided by the
                                                    State agency
                                                    under the pilot
                                                    project; as
                                                    compared to
                                                      (BB) a
                                                    control group
                                                    that is not
                                                    subject to the
                                                    employment and
                                                    training
                                                    programs and
                                                    services
                                                    provided by the
                                                    State agency
                                                    under the pilot
                                                    project.
                                      (II) Reporting.--Not later
                                    than December 31, 2015, and
                                    each December 31 thereafter
                                    until the completion of the
                                    last evaluation under subclause
                                    (I), 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 and
                                    share broadly, including by
                                    posting on the Internet website
                                    of the Department of
                                    Agriculture, a report that
                                    includes a description of--
                                              (aa) the status of
                                            each pilot project
                                            carried out under this
                                            subparagraph;
                                              (bb) the results of
                                            the evaluation
                                            completed during the
                                            previous fiscal year;
                                              (cc) to the maximum
                                            extent practicable,
                                            baseline information
                                            relevant to the stated
                                            goals and desired
                                            outcomes of the pilot
                                            project;
                                              (dd) the employment
                                            and training programs
                                            and services each State
                                            tested under the pilot,
                                            including--
                                                      (AA) the
                                                    system of the
                                                    State for
                                                    assessing the
                                                    ability of work
                                                    registrants to
                                                    participate in
                                                    and meet the
                                                    requirements of
                                                    employment and
                                                    training
                                                    activities and
                                                    assigning work
                                                    registrants to
                                                    appropriate
                                                    activities; and
                                                      (BB) the
                                                    employment and
                                                    training
                                                    activities and
                                                    services
                                                    provided under
                                                    the pilot;
                                              (ee) the impact of
                                            the employment and
                                            training programs and
                                            services on appropriate
                                            employment, income, and
                                            public benefit receipt
                                            as well as other
                                            outcomes among
                                            households
                                            participating in the
                                            pilot project, relative
                                            to households not
                                            participating; and
                                              (ff) the steps and
                                            funding necessary to
                                            incorporate into State
                                            employment and training
                                            programs and services
                                            the components of the
                                            pilot projects that
                                            demonstrate increased
                                            employment and
                                            earnings.
                              (viii) Funding.--
                                      (I) In general.--Subject to
                                    subclause (II), from amounts
                                    made available under section
                                    18(a)(1), the Secretary shall
                                    use to carry out this
                                    subparagraph--
                                              (aa) for fiscal year
                                            2014, $10,000,000; and
                                              (bb) for fiscal year
                                            2015, $190,000,000.
                                      (II) Limitations.--
                                              (aa) In general.--The
                                            Secretary shall not
                                            fund more than 10 pilot
                                            projects under this
                                            subparagraph.
                                              (bb) Duration.--Each
                                            pilot project shall be
                                            in effect for not more
                                            than 3 years.
                                      (III) Availability of
                                    funds.--Funds made available
                                    under subclause (I) shall
                                    remain available through
                                    September 30, 2018.
                              (ix) Use of funds.--
                                      (I) In general.--Funds made
                                    available under this
                                    subparagraph for pilot projects
                                    shall be used only for--
                                              (aa) pilot projects
                                            that comply with this
                                            Act;
                                              (bb) the program and
                                            administrative costs of
                                            carrying out the pilot
                                            projects;
                                              (cc) the costs
                                            incurred in developing
                                            systems and providing
                                            information and data
                                            for the independent
                                            evaluations under
                                            clause (vii); and
                                              (dd) the costs of the
                                            evaluations under
                                            clause (vii).
                                      (II) Maintenance of effort.--
                                    Funds made available under this
                                    subparagraph shall be used only
                                    to supplement, not to supplant,
                                    non-Federal funds used for
                                    existing employment and
                                    training activities or
                                    services.
                                      (III) Other funds.--In
                                    carrying out pilot projects,
                                    States may contribute
                                    additional funds obtained from
                                    other sources, including
                                    Federal, State, or private
                                    funds, on the condition that
                                    the use of the contributions is
                                    permissible under Federal law.
      (2) If, in carrying out such program during such fiscal year,
    a State agency incurs costs that exceed the amount allocated to
    the State agency under paragraph (1), the Secretary shall pay
    such State agency an amount equal to 50 per centum of such
    additional costs, subject to the first limitation in paragraph
    (3), including the costs for case management and casework to
    facilitate the transition from economic dependency to self-
    sufficiency through work.
      (3) The Secretary shall also reimburse each State agency in
    an amount equal to 50 per centum of the total amount of
    payments made or costs incurred by the State agency in
    connection with transportation costs and other expenses
    reasonably necessary and directly related to participation in
    an employment and training program under section 6(d)(4) or a
    pilot project under paragraph (1)(F), except that the amount of
    the reimbursement for dependent care expenses shall not exceed
    an amount equal to the payment made under section
    6(d)(4)(I)(i)(II) but not more than the applicable local market
    rate, and such reimbursement shall not be made out of funds
    allocated under paragraph (1).
      (4) Funds provided to a State agency under this subsection
    may be used only for operating an employment and training
    program under section 6(d)(4) or a pilot project under
    paragraph (1)(F), and may not be used for carrying out other
    provisions of this Act.
              (5) Monitoring.--
                      (A) In general.--The Secretary shall monitor
                    the employment and training programs carried
                    out by State agencies under section 6(d)(4) and
                    assess the effectiveness of the programs in--
                              (i) preparing members of households
                            participating in the supplemental
                            nutrition assistance program for
                            employment, including the acquisition
                            of basic skills necessary for
                            employment; and
                              (ii) increasing the number of
                            household members who obtain and retain
                            employment subsequent to participation
                            in the employment and training
                            programs.
                      (B) Reporting measures.--
                              (i) In general.--The Secretary, in
                            consultation with the Secretary of
                            Labor, shall develop State reporting
                            measures that identify improvements in
                            the skills, training, education, or
                            work experience of members of
                            households participating in the
                            supplemental nutrition assistance
                            program.
                              (ii) Requirements.--Measures shall--
                                      (I) be based on common
                                    measures of performance for
                                    Federal workforce training
                                    programs; and
                                      (II) include additional
                                    indicators that reflect the
                                    challenges facing the types of
                                    members of households
                                    participating in the
                                    supplemental nutrition
                                    assistance program who
                                    participate in a specific
                                    employment and training
                                    component.
                              (iii) State requirements.--The
                            Secretary shall require that each State
                            employment and training plan submitted
                            under section 11(e)(19) identifies
                            appropriate reporting measures for each
                            proposed component that serves a
                            threshold number of participants
                            determined by the Secretary of at least
                            100 people a year.
                              (iv) Inclusions.--Reporting measures
                            described in clause (iii) may include--
                                      (I) the percentage and number
                                    of program participants who
                                    received employment and
                                    training services and are in
                                    unsubsidized employment
                                    subsequent to the receipt of
                                    those services;
                                      (II) the percentage and
                                    number of program participants
                                    who obtain a recognized
                                    credential, including a
                                    registered apprenticeship, or a
                                    regular secondary school
                                    diploma or its recognized
                                    equivalent, while participating
                                    in, or within 1 year after
                                    receiving, employment and
                                    training services;
                                      (III) the percentage and
                                    number of program participants
                                    who are in an education or
                                    training program that is
                                    intended to lead to a
                                    recognized credential,
                                    including a registered
                                    apprenticeship or on-the-job
                                    training program, a regular
                                    secondary school diploma or its
                                    recognized equivalent, or
                                    unsubsidized employment;
                                      (IV) subject to terms and
                                    conditions established by the
                                    Secretary, measures developed
                                    by each State agency to assess
                                    the skills acquisition of
                                    employment and training program
                                    participants that reflect the
                                    goals of the specific
                                    employment and training program
                                    components of the State agency,
                                    which may include, at a
                                    minimum--
                                              (aa) the percentage
                                            and number of program
                                            participants who are
                                            meeting program
                                            requirements in each
                                            component of the
                                            education and training
                                            program of the State
                                            agency;
                                              (bb) the percentage
                                            and number of program
                                            participants who are
                                            gaining skills likely
                                            to lead to employment
                                            as measured through
                                            testing, quantitative
                                            or qualitative
                                            assessment, or other
                                            method; and
                                              (cc) the percentage
                                            and number of program
                                            participants who do not
                                            comply with employment
                                            and training
                                            requirements and who
                                            are ineligible under
                                            section 6(b); and
                                      (V) other indicators approved
                                    by the Secretary.
                              (v) State option.--The State agency
                            may report relevant data from a
                            workforce partnership carried out under
                            section 6(d)(4)(N) to demonstrate the
                            number of program participants served
                            by the workforce partnership.
                      (C) Oversight of State employment and
                    training activities.--The Secretary shall
                    assess State employment and training programs
                    on a periodic basis to ensure--
                              (i) compliance with Federal
                            employment and training program rules
                            and regulations;
                              (ii) that program activities are
                            appropriate to meet the needs of the
                            individuals referred by the State
                            agency to an employment and training
                            program component;
                              (iii) that reporting measures are
                            appropriate to identify improvements in
                            skills, training, work and experience
                            for participants in an employment and
                            training program component; and
                              (iv) for States receiving additional
                            allocations under paragraph (1)(E), any
                            information the Secretary may require
                            to evaluate the compliance of the State
                            agency with paragraph (1), which may
                            include--
                                      (I) a report for each fiscal
                                    year of the number of
                                    individuals in the State who
                                    meet the conditions of
                                    paragraph (1)(E)(ii), the
                                    number of individuals the State
                                    agency offers a position in a
                                    program described in
                                    subparagraph (B) or (C) of
                                    section 6(o)(2), and the number
                                    who participate in such a
                                    program;
                                      (II) a description of the
                                    types of employment and
                                    training programs the State
                                    agency uses to comply with
                                    paragraph (1)(E) and the
                                    availability of those programs
                                    throughout the State; and
                                      (III) any additional
                                    information the Secretary
                                    determines to be appropriate.
                      (D) State report.--Each State agency shall
                    annually prepare and submit to the Secretary a
                    report on the State employment and training
                    program that includes, using measures
                    identified under subparagraph (B), the numbers
                    of supplemental nutrition assistance program
                    participants who have gained skills, training,
                    work, or experience that will increase the
                    ability of the participants to obtain regular
                    employment.
                      (E) Modifications to the State employment and
                    training plan.--Subject to terms and conditions
                    established by the Secretary, if the Secretary
                    determines that the performance of a State
                    agency with respect to employment and training
                    outcomes is inadequate, the Secretary may
                    require the State agency to make modifications
                    to the State employment and training plan to
                    improve the outcomes.
                      (F) Periodic evaluation.--Subject to terms
                    and conditions established by the Secretary,
                    not later than October 1, 2016, and not less
                    frequently than once every 5 years thereafter,
                    the Secretary shall conduct a study to review
                    existing practice and research to identify
                    employment and training program components and
                    practices that--
                              (i) effectively assist members of
                            households participating in the
                            supplemental nutrition assistance
                            program in gaining skills, training,
                            work, or experience that will increase
                            the ability of the participants to
                            obtain regular employment; and
                              (ii) are best integrated with
                            statewide workforce development
                            systems.
      (i)(1) The Department of Agriculture may use quality control
    information made available under this section to determine
    which project areas have payment error rates (as defined in
    subsection (d)(1)) that impair the integrity of the
    supplemental nutrition assistance program.
      (2) The Secretary may require a State agency to carry out new
    or modified procedures for the certification of households in
    areas identified under paragraph (1) if the Secretary
    determines such procedures would improve the integrity of the
    supplemental nutrition assistance program and be cost
    effective.
      (j) Not later than 180 days after the date of the enactment
    of the Hunger Prevention Act of 1988, and annually thereafter,
    the Secretary shall publish instructional materials
    specifically designed to be used by the State agency to provide
    intensive training to State agency personnel who undertake the
    certification of households that include a member who engages
    in farming.
      (k) Reductions in Payments for Administrative Costs.--
              (1) Definitions.--In this subsection:
                      (A) AFDC program.--The term ``AFDC program''
                    means the program of aid to families with
                    dependent children established under part A of
                    title IV of the Social Security Act (42 U.S.C.
                    601 et seq. (as in effect, with respect to a
                    State, during the base period for that State)).
                      (B) Base period.--The term ``base period''
                    means the period used to determine the amount
                    of the State family assistance grant for a
                    State under section 403 of the Social Security
                    Act (42 U.S.C. 603).
                      (C) Medicaid program.--The term ``medicaid
                    program'' means the program of medical
                    assistance under a State plan or under a waiver
                    of the plan under title XIX of the Social
                    Security Act (42 U.S.C. 1396 et seq.).
              (2) Determinations of amounts attributable to
            benefiting programs.--Not later than 180 days after the
            date of enactment of this subsection, the Secretary of
            Health and Human Services, in consultation with the
            Secretary of Agriculture and the States, shall, with
            respect to the base period for each State, determine--
                      (A) the annualized amount the State received
                    under section 403(a)(3) of the Social Security
                    Act (42 U.S.C. 603(a)(3) (as in effect during
                    the base period)) for administrative costs
                    common to determining the eligibility of
                    individuals, families, and households eligible
                    or applying for the AFDC program and the
                    supplemental nutrition assistance program, the
                    AFDC program and the medicaid program, and the
                    AFDC program, the supplemental nutrition
                    assistance program, and the medicaid program
                    that were allocated to the AFDC program; and
                      (B) the annualized amount the State would
                    have received under section 403(a)(3) of the
                    Social Security Act (42 U.S.C. 603(a)(3) (as so
                    in effect)), section 1903(a)(7) of the Social
                    Security Act (42 U.S.C. 1396b(a)(7) (as so in
                    effect)), and subsection (a) of this section
                    (as so in effect), for administrative costs
                    common to determining the eligibility of
                    individuals, families, and households eligible
                    or applying for the AFDC program and the
                    supplemental nutrition assistance program, the
                    AFDC program and the medicaid program, and the
                    AFDC program, the supplemental nutrition
                    assistance program, and the medicaid program,
                    if those costs had been allocated equally among
                    such programs for which the individual, family,
                    or household was eligible or applied for.
              (3) Reduction in payment.--
                      (A) In general.--Notwithstanding any other
                    provision of this section, the Secretary shall
                    reduce, for each fiscal year, the amount paid
                    under subsection (a) to each State by an amount
                    equal to the amount determined for the
                    supplemental nutrition assistance program under
                    paragraph (2)(B). The Secretary shall, to the
                    extent practicable, make the reductions
                    required by this paragraph on a quarterly
                    basis.
                      (B) Application.--If the Secretary of Health
                    and Human Services does not make the
                    determinations required by paragraph (2) by
                    September 30, 1999--
                              (i) during the fiscal year in which
                            the determinations are made, the
                            Secretary shall reduce the amount paid
                            under subsection (a) to each State by
                            an amount equal to the sum of the
                            amounts determined for the supplemental
                            nutrition assistance program under
                            paragraph (2)(B) for fiscal year 1999
                            through the fiscal year during which
                            the determinations are made; and
                              (ii) for each subsequent fiscal year,
                            subparagraph (A) applies.
              (4) Appeal of determinations.--
                      (A) In general.--Not later than 5 days after
                    the date on which the Secretary of Health and
                    Human Services makes any determination required
                    by paragraph (2) with respect to a State, the
                    Secretary shall notify the chief executive
                    officer of the State of the determination.
                      (B) Review by administrative law judge.--
                              (i) In general.--Not later than 60
                            days after the date on which a State
                            receives notice under subparagraph (A)
                            of a determination, the State may
                            appeal the determination, in whole or
                            in part, to an administrative law judge
                            of the Department of Health and Human
                            Services by filing an appeal with the
                            administrative law judge.
                              (ii) Documentation.--The
                            administrative law judge shall consider
                            an appeal filed by a State under clause
                            (i) on the basis of such documentation
                            as the State may submit and as the
                            administrative law judge may require to
                            support the final decision of the
                            administrative law judge.
                              (iii) Review.--In deciding whether to
                            uphold a determination, in whole or in
                            part, the administrative law judge
                            shall conduct a thorough review of the
                            issues and take into account all
                            relevant evidence.
                              (iv) Deadline.--Not later than 60
                            days after the date on which the record
                            is closed, the administrative law judge
                            shall--
                                      (I) make a final decision
                                    with respect to an appeal filed
                                    under clause (i); and
                                      (II) notify the chief
                                    executive officer of the State
                                    of the decision.
                      (C) Review by departmental appeals board.--
                              (i) In general.--Not later than 30
                            days after the date on which a State
                            receives notice under subparagraph (B)
                            of a final decision, the State may
                            appeal the decision, in whole or in
                            part, to the Departmental Appeals Board
                            established in the Department of Health
                            and Human Services (referred to in this
                            paragraph as the ``Board'') by filing
                            an appeal with the Board.
                              (ii) Review.--The Board shall review
                            the decision on the record.
                              (iii) Deadline.--Not later than 60
                            days after the date on which the appeal
                            is filed, the Board shall--
                                      (I) make a final decision
                                    with respect to an appeal filed
                                    under clause (i); and
                                      (II) notify the chief
                                    executive officer of the State
                                    of the decision.
                      (D) Judicial review.--The determinations of
                    the Secretary of Health and Human Services
                    under paragraph (2), and a final decision of
                    the administrative law judge or Board under
                    subparagraphs (B) and (C), respectively, shall
                    not be subject to judicial review.
                      (E) Reduced payments pending appeal.--The
                    pendency of an appeal under this paragraph
                    shall not affect the requirement that the
                    Secretary reduce payments in accordance with
                    paragraph (3).
              (5) Allocation of administrative costs.--
                      (A) In general.--No funds or expenditures
                    described in subparagraph (B) may be used to
                    pay for costs--
                              (i) eligible for reimbursement under
                            subsection (a) (or costs that would
                            have been eligible for reimbursement
                            but for this subsection); and
                              (ii) allocated for reimbursement to
                            the supplemental nutrition assistance
                            program under a plan submitted by a
                            State to the Secretary of Health and
                            Human Services to allocate
                            administrative costs for public
                            assistance programs.
                      (B) Funds and expenditures.--Subparagraph (A)
                    applies to--
                              (i) funds made available to carry out
                            part A of title IV, or title XX, of the
                            Social Security Act (42 U.S.C. 601 et
                            seq., 1397 et seq.);
                              (ii) expenditures made as qualified
                            State expenditures (as defined in
                            section 409(a)(7)(B) of that Act (42
                            U.S.C. 609(a)(7)(B)));
                              (iii) any other Federal funds (except
                            funds provided under subsection (a));
                            and
                              (iv) any other State funds that are--
                                      (I) expended as a condition
                                    of receiving Federal funds; or
                                      (II) used to match Federal
                                    funds under a Federal program
                                    other than the supplemental
                                    nutrition assistance program.

               *       *       *       *       *       *       *

                        AUTHORIZATION FOR APPROPRIATIONS

      Sec. 18. (a)(1) To carry out this Act, there are authorized
    to be appropriated such sums as are necessary for each of
    fiscal years 2008 through [2023] 2031. Not to exceed one-fourth
    of 1 per centum of the previous year's appropriation is
    authorized in each such fiscal year to carry out the provisions
    of section 17 of this Act, subject to paragraph (3).
      (2) No funds authorized to be appropriated under this Act or
    any other Act of Congress shall be used by any person, firm,
    corporation, group, or organization at any time, directly or
    indirectly, to interfere with or impede the implementation of
    any provision of this Act or any rule, regulation, or project
    thereunder, except that this limitation shall not apply to the
    provision of legal and related assistance in connection with
    any proceeding or action before any State or Federal agency or
    court. The President shall ensure that this paragraph is
    complied with by such order or other means as the President
    deems appropriate.
      (3)(A) Of the amounts made available under the second
    sentence of paragraph (1), not more than $2,000,000 in any
    fiscal year may be used by the Secretary to make 2-year
    competitive grants that will--
              (i) enhance interagency cooperation in nutrition
            education activities; and
              (ii) develop cost effective ways to inform people
            eligible for supplemental nutrition assistance program
            benefits about nutrition, resource management, and
            community nutrition education programs, such as the
            expanded food and nutrition education program.
      (B) The Secretary shall make awards under this paragraph to
    one or more State cooperative extension services (as defined in
    section 1404 of the National Agricultural Research, Extension,
    and Teaching Policy Act of 1977 (7 U.S.C. 3103)) who shall
    administer the grants in coordination with other State or local
    agencies serving low-income people.
      (C) Each project shall include an evaluation component and
    shall develop an implementation plan for replication in other
    States.
      (D) The Secretary shall report to the appropriate committees
    of Congress on the results of the projects and shall
    disseminate the results through the cooperative extension
    service system and to State human services and health
    department offices, local supplemental nutrition assistance
    program offices, and other entities serving low-income
    households.
      (b) In any fiscal year, the Secretary shall limit the value
    of those allotments issued to an amount not in excess of the
    appropriation for such fiscal year. Notwithstanding any other
    provision of this Act, if in any fiscal year the Secretary
    finds that the requirements of participating States will exceed
    the appropriation, the Secretary shall direct State agencies to
    reduce the value of such allotments to be issued to households
    certified as eligible to participate in the supplemental
    nutrition assistance program to the extent necessary to comply
    with the provisions of this subsection.
      (c) In prescribing the manner in which allotments will be
    reduced under subsection (b) of this section, the Secretary
    shall ensure that such reductions reflect, to the maximum
    extent practicable, the ratio of household income, determined
    under sections 5(d) and 5(e) of this Act, to the income
    standards of eligibility, for households of equal size,
    determined under section 5(c) of this Act. The Secretary may,
    in prescribing the manner in which allotments will be reduced,
    establish (1) special provisions applicable to persons sixty
    years of age or over and persons who are physically or mentally
    handicapped or otherwise disabled, and (2) minimum allotments
    after any reductions are otherwise determined under this
    section.
      (d) Not later than sixty days after the issuance of a report
    under subsection (a) of this section in which the Secretary
    expresses the belief that reductions in the value of allotments
    to be issued to households certified to participate in the
    supplemental nutrition assistance program will be necessary,
    the Secretary shall take the requisite action to reduce
    allotments in accordance with the requirements of this section.
    Not later than seven days after the Secretary takes any action
    to reduce allotments under this section, the Secretary shall
    furnish the Committee on Agriculture of the House of
    Representatives and the Committee on Agriculture, Nutrition,
    and Forestry of the Senate a statement setting forth (1) the
    basis of the Secretary's determination, (2) the manner in which
    the allotments will be reduced, and (3) the action that has
    been taken by the Secretary to reduce the allotments.
      (e) Funds collected from claims against households or State
    agencies, including claims collected pursuant to section 7(f),
    subsections (g) and (h) of section 11, subsections (b) and (c)
    of section 13, and section 16(c)(1), claims resulting from
    resolution of audit findings, and claims collected from
    households receiving overissuances, shall be credited to the
    supplemental nutrition assistance program appropriation account
    for the fiscal year in which the collection occurs. Funds
    provided to State agencies under section 16(c) of this Act
    shall be paid from the appropriation account for the fiscal
    year in which the funds are provided.
      (f) No funds appropriated to carry out this Act may be
    transferred to the Office of the Inspector General, or the
    Office of the General Counsel, of the Department of
    Agriculture.
      (g) Ban on Recruitment and Promotion Activities.--
              (1) In general.--Except as provided in paragraph (2),
            no funds authorized to be appropriated under this Act
            shall be used by the Secretary for--
                      (A) recruitment activities designed to
                    persuade an individual to apply for
                    supplemental nutrition assistance program
                    benefits;
                      (B) television, radio, or billboard
                    advertisements that are designed to promote
                    supplemental nutrition assistance program
                    benefits and enrollment; or
                      (C) any agreements with foreign governments
                    designed to promote supplemental nutrition
                    assistance program benefits and enrollment.
              (2) Limitation.--Paragraph (1)(B) shall not apply to
            programmatic activities undertaken with respect to
            benefits made under section 5(h).
      (h) Ban on Recruitment by Entities that Receive Funds.--The
    Secretary shall issue regulations that prohibit entities that
    receive funds under this Act to compensate any person for
    conducting outreach activities relating to participation in, or
    for recruiting individuals to apply to receive benefits under,
    the supplemental nutrition assistance program, if the amount of
    the compensation would be based on the number of individuals
    who apply to receive the benefits.

               *       *       *       *       *       *       *

    SEC. 27. AVAILABILITY OF COMMODITIES FOR THE EMERGENCY FOOD ASSISTANCE
                        PROGRAM.

      (a) Purchase of Commodities.--
              (1) In general.--From amounts made available to carry
            out this Act, for each of the fiscal years 2014 through
            [2023] 2031, the Secretary shall purchase a dollar
            amount described in paragraph (2) of a variety of
            nutritious and useful commodities of the types that the
            Secretary has the authority to acquire through the
            Commodity Credit Corporation or under section 32 of the
            Act entitled ``An Act to amend the Agricultural
            Adjustment Act, and for other purposes'', approved
            August 24, 1935 (7 U.S.C. 612c), and distribute the
            commodities to States for distribution in accordance
            with section 214 of the Emergency Food Assistance Act
            of 1983 (7 U.S.C. 7515).
              (2) Amounts.--The Secretary shall use to carry out
            paragraph (1)--
                      (A) for fiscal year 2008, $190,000,000;
                      (B) for fiscal year 2009, $250,000,000;
                      (C) for each of fiscal years 2010 through
                    2023, the dollar amount of commodities
                    specified in subparagraph (B) adjusted by the
                    percentage by which the thrifty food plan has
                    been adjusted under section 3(u)(3) between
                    June 30, 2008, and June 30 of the immediately
                    preceding fiscal year;
                      (D) for each of fiscal years 2015 through
                    2023, the sum obtained by adding the total
                    dollar amount of commodities specified in
                    subparagraph (C) and--
                              (i) for fiscal year 2015,
                            $50,000,000;
                              (ii) for fiscal year 2016,
                            $40,000,000;
                              (iii) for fiscal year 2017,
                            $20,000,000;
                              (iv) for fiscal year 2018,
                            $15,000,000;
                              (v) for fiscal year 2019,
                            $23,000,000;
                              (vi) for fiscal year 2020,
                            $35,000,000;
                              (vii) for fiscal year 2021,
                            $35,000,000;
                              (viii) for fiscal year 2022,
                            $35,000,000; and
                              (ix) for fiscal year 2023,
                            $35,000,000; and
                      (E) for fiscal year 2024 and each subsequent
                    fiscal year, the total dollar amount of
                    commodities specified in subparagraph (D)(ix)
                    adjusted by the percentage by which the thrifty
                    food plan has been adjusted under section
                    3(u)(3) to reflect changes between June 30,
                    2023, and June 30 of the immediately preceding
                    fiscal year.
              (3) Funds availability.--For purposes of the funds
            described in this subsection, the Secretary shall--
                      (A) make the funds available for 2 fiscal
                    years; and
                      (B) allow States to carry over unexpended
                    balances to the next fiscal year pursuant to
                    such terms and conditions as are determined by
                    the Secretary.
      (b) Basis for Commodity Purchases.--In purchasing commodities
    under subsection (a), the Secretary shall, to the extent
    practicable and appropriate, make purchases based on--
              (1) agricultural market conditions;
              (2) preferences and needs of States and distributing
            agencies; and
              (3) preferences of recipients.

               *       *       *       *       *       *       *

    SEC. 29. RETAIL FOOD STORE AND RECIPIENT TRAFFICKING.

      (a) Purpose.--The purpose of this section is to provide the
    Department of Agriculture with additional resources to prevent
    trafficking in violation of this Act by strengthening recipient
    and retail food store program integrity.
      (b) Use of Funds.--
              (1) In general.--Additional funds are provided under
            this section to supplement the retail food store and
            recipient integrity activities of the Department.
              (2) Information technologies.--The Secretary shall
            use an appropriate amount of the funds provided under
            this section to employ information technologies known
            as data mining and data warehousing and other available
            information technologies to administer the supplemental
            nutrition assistance program and enforce regulations
            promulgated under section 4(c).
      (c) Funding.--
              (1) Authorization of appropriations.--There is
            authorized to be appropriated to carry out this section
            $5,000,000 for each of fiscal years 2014 through [2023]
            2031.
              (2) Mandatory funding.--
                      (A) In general.--Out of any funds in the
                    Treasury not otherwise appropriated, the
                    Secretary of the Treasury shall transfer to the
                    Secretary to carry out this section not less
                    than $15,000,000 for fiscal year 2014, to
                    remain available until expended.
                      (B) Receipt and acceptance.--The Secretary
                    shall be entitled to receive, shall accept, and
                    shall use to carry out this section the funds
                    transferred under subparagraph (A), without
                    further appropriation.
                      (C) Maintenance of funding.--The funding
                    provided under subparagraph (A) shall
                    supplement (and not supplant) other Federal
                    funding for programs carried out under this
                    Act.

               *       *       *       *       *       *       *

                                  ----------

                     EMERGENCY FOOD ASSISTANCE ACT OF 1983

                TITLE II--EMERGENCY FOOD ASSISTANCE ACT OF 1983

               *       *       *       *       *       *       *

    SEC. 209. EMERGENCY FOOD PROGRAM INFRASTRUCTURE GRANTS.

      (a) Definition of Eligible Entity.--In this section, the term
    ``eligible entity'' means an emergency feeding organization.
      (b) Program Authorized.--
              (1) In general.--The Secretary shall use funds made
            available under subsection (d) to make grants to
            eligible entities to pay the costs of an activity
            described in subsection (c).
              (2) Rural preference.--The Secretary shall use not
            less than 50 percent of the funds described in
            paragraph (1) for a fiscal year to make grants to
            eligible entities that serve predominantly rural
            communities for the purposes of--
                      (A) expanding the capacity and infrastructure
                    of food banks, State-wide food bank
                    associations, and food bank collaboratives that
                    operate in rural areas; and
                      (B) improving the capacity of the food banks
                    to procure, receive, store, distribute, track,
                    and deliver time-sensitive or perishable food
                    products.
      (c) Use of Funds.--An eligible entity shall use a grant
    received under this section for any fiscal year to carry out
    activities of the eligible entity, including--
              (1) the development and maintenance of a computerized
            system for the tracking of time-sensitive food
            products;
              (2) capital, infrastructure, and operating costs
            associated with the collection, storage, distribution,
            and transportation of time-sensitive and perishable
            food products;
              (3) improving the security and diversity of the
            emergency food distribution and recovery systems of the
            United States through the support of small or mid-size
            farms and ranches, fisheries, and aquaculture, and
            donations from local food producers and manufacturers
            to persons in need;
              (4) providing recovered foods to food banks and
            similar nonprofit emergency food providers to reduce
            hunger in the United States;
              (5) improving the identification of--
                      (A) potential providers of donated foods;
                      (B) potential nonprofit emergency food
                    providers; and
                      (C) persons in need of emergency food
                    assistance in rural areas; and
              (6) constructing, expanding, or repairing a facility
            or equipment to support hunger relief agencies in the
            community.
      (d) Authorization of Appropriations.--There is authorized to
    be appropriated to carry out this section $15,000,000 for each
    of fiscal years 2008 through [2023] 2031.

               *       *       *       *       *       *       *

    SEC. 214. REQUIRED PURCHASES OF COMMODITIES.

      (a) Mandatory Allotments.--In each fiscal year, the Secretary
    shall allot--
              (1) 60 percent of the total value of additional
            commodities provided to States in a manner such that
            the value of additional commodities allocated to each
            State bears the same ratio to 60 percent of the total
            value of additional commodities as the number of
            persons in households within the State having incomes
            below the poverty line bears to the total number of
            persons in households within all States having incomes
            below such poverty line, and each State shall be
            entitled to receive such value of additional
            commodities; and
              (2) 40 percent of the total value of additional
            commodities provided to States in a manner such that
            the value of additional commodities allocated to each
            State bears the same ratio to 40 percent of the total
            value of additional commodities as the average monthly
            number of unemployed persons within the State bears to
            the average monthly number of unemployed persons within
            all States during the same fiscal year, and each State
            shall be entitled to receive such value of additional
            commodities.
      (b) Reallocation.--The Secretary shall notify each State of
    the amount of the additional commodities that such State is
    allotted to receive under subsection (a), and each State shall
    promptly notify the Secretary if such State determines that it
    will not accept any or all of the commodities made available
    under such allocation. On such a notification by a State, the
    Secretary shall reallocate and distribute the amount the State
    was allocated to receive under the formula prescribed in
    subsection (a) but declines to accept. The Secretary shall
    further establish procedures to permit States to decline to
    receive portions of such allocation during each fiscal year as
    the State determines is appropriate and the Secretary shall
    reallocate and distribute such allocation. In the event of any
    drought, flood, hurricane, or other natural disaster affecting
    substantial numbers of persons in a State, county, or parish,
    the Secretary may request that States unaffected by such a
    disaster consider assisting affected States by allowing the
    Secretary to reallocate commodities to which each such
    unaffected State is entitled to States containing areas
    adversely affected by the disaster.
      (c) Administration.--
              (1) In general.--Commodities made available for each
            fiscal year under this section shall be delivered at
            reasonable intervals to States based on the grants
            calculated under subsection (a), or reallocated under
            subsection (b), before December 31 of the following
            fiscal year.
              (2) Entitlement.--Each State shall be entitled to
            receive the value of additional commodities determined
            under subsection (a).
              (3) Option for purchasing through dod fresh.--At the
            request of a State agency, the Secretary may allow the
            State agency to use not more than 20 percent of the
            cost of the commodities allocated to that State agency
            under this section to order commodities through the
            Department of Defense Fresh Fruit and Vegetable
            Program.
      (d) Maintenance of Effort.--If a State uses its own funds to
    provide commodities or services to organizations receiving
    funds or services under this section, such State shall not
    diminish the level of support it provides to such
    organizations.

               *       *       *       *       *       *       *

                                  ----------

                AGRICULTURE AND CONSUMER PROTECTION ACT OF 1973

                         COMMODITY DISTRIBUTION PROGRAM

      Sec. 4. (a) Notwithstanding any other provision of law, the
    Secretary may, during fiscal years 2008 through [2023] 2031,
    purchase and distribute sufficient agricultural commodities
    with funds appropriated from the general fund of the Treasury
    to maintain the traditional level of assistance for food
    assistance programs as are authorized by law, including but not
    limited to distribution to institutions (including hospitals
    and facilities caring for needy infants and children),
    supplemental feeding programs serving women, infants, and
    children or elderly persons, or both, wherever located,
    disaster areas, summer camps for children, the United States
    Trust Territory of the Pacific Islands, and Indians, whenever a
    tribal organization requests distribution of federally donated
    foods pursuant to section 4(b) of the Food and Nutrition Act of
    2008 (section 2013(b) of this title). In providing for
    commodity distribution to Indians, the Secretary shall improve
    the variety and quantity of commodities supplied to Indians in
    order to provide them an opportunity to obtain a more
    nutritious diet.
      (b) The Secretary may furnish commodities to summer camps for
    children in which the number of adults participating in camp
    activities as compared with the number of children 18 years of
    age and under so participating is not unreasonable in light of
    the nature of such camp and the characteristics of the children
    in attendance.
      (c) Whoever embezzles, willfully misapplies, steals or
    obtains by fraud any agricultural commodity or its products (or
    any funds, assets, or property deriving from donation of such
    commodities) provided under this section, or under section 416
    of the Agricultural Act of 1949 (7 U.S.C. 1431), section 32 of
    the Act of August 24, 1935 (7 U.S.C. 612c), section 709 of the
    Food and Agriculture Act of 1965 (7 U.S.C. 1446a-1), or the
    Emergency Food Assistance Act of 1983, whether received
    directly or indirectly from the United States Department of
    Agriculture, or whoever receives, conceals, or retains such
    commodities, products, funds, assets, or property for personal
    use or gain, knowing such commodities, products, funds, assets,
    or property have been embezzled, willfully misapplied, stolen,
    or obtained by fraud shall, if such commodities, products,
    funds, assets, or property are of a value of $100 or more, be
    fined not more than $10,000 or imprisoned not more than five
    years, or both, or if such commodities, products, funds,
    assets, or property are of value of less than $100, shall be
    fined not more than $1,000 or imprisoned for not more than one
    year, or both.

                      COMMODITY SUPPLEMENTAL FOOD PROGRAM

      Sec. 5. (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 2008 through [2023] 2031, 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) Subsequent fiscal years.--For each of
                    fiscal years 2004 through [2023] 2031, 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.
      (b) During the first three months of any commodity
    supplemental food program, or until such program reaches its
    projected caseload level, whichever comes first, the Secretary
    shall pay those administrative costs necessary to commence the
    program successfully: Provided, That in no event shall
    administrative costs paid by the Secretary for any fiscal year
    exceed the limitation established in subsection (a) of this
    section.
      (c) Administrative costs for the purposes of the commodity
    supplemental food program shall include, but not be limited to,
    expenses for information and referral, operation, monitoring,
    nutrition education, start-up costs, and general
    administration, including staff, warehouse and transportation
    personnel, insurance, and administration of the State or local
    office.
      (d)(1) During each fiscal year the commodity supplemental
    food program is in operation, the types and varieties of
    commodities and their proportional amounts shall be determined
    by the Secretary, but, if the Secretary proposes to make any
    significant changes in the types, varieties, or proportional
    amounts from those that were available or were planned at the
    beginning of the fiscal year (or as were available during the
    fiscal year ending June 30, 1976, whichever is greater) the
    Secretary shall report such changes before implementation to
    the Committee on Agriculture of the House of Representatives
    and the Committee on Agriculture, Nutrition, and Forestry of
    the Senate.
      (2) Notwithstanding any other provision of law, the Commodity
    Credit Corporation shall, to the extent that the Commodity
    Credit Corporation inventory levels permit, provide not less
    than 9,000,000 pounds of cheese and not less than 4,000,000
    pounds of nonfat dry milk in each of fiscal years 2008 through
    [2023] 2031 to the Secretary of Agriculture. The Secretary
    shall use such amounts of cheese and nonfat dry milk to carry
    out the commodity supplemental food program before the end of
    each fiscal year.
      (e) The Secretary of Agriculture is authorized to issue such
    regulations as may be necessary to carry out the commodity
    supplemental food program.
      (f) The Secretary shall, in any fiscal year, approve
    applications of additional sites for the program, including
    sites that serve only elderly persons, in areas in which the
    program currently does not operate to the full extent that this
    can be done within the appropriations available for the program
    for the fiscal year and without reducing actual participation
    levels (including participation of elderly persons under
    subsection (g)) in areas in which the program is in effect.
      (g) Eligibility.--
              (1) In general.--Except as provided in subsection
            (m), the States shall only provide assistance under the
            commodity supplemental food program to low-income
            persons aged 60 and older.
              (2) Certification.--
                      (A) Definition of certification period.--In
                    this paragraph, the term ``certification
                    period'' means the period during which a
                    participant in the commodity supplemental food
                    program in a State may continue to receive
                    benefits under the commodity supplemental food
                    program without a formal review of the
                    eligibility of the participant.
                      (B) Minimum certification period.--Subject to
                    subparagraphs (C) and (D), a State shall
                    establish for the commodity supplemental food
                    program of the State a certification period
                    of--
                              (i) not less than 1 year; but
                              (ii) not more than 3 years.
                      (C) Temporary certification.--An eligible
                    applicant for the commodity supplemental food
                    program in a State may be provided with a
                    temporary monthly certification to fill any
                    caseload slot resulting from nonparticipation
                    by certified participants.
                      (D) Approvals.--A certification period of
                    more than 1 year established by a State under
                    subparagraph (B) shall be subject to the
                    approval of the Secretary, who shall approve
                    such a certification period on the condition
                    that, with respect to each participant
                    receiving benefits under the commodity
                    supplemental food program of the State, the
                    local agency in the State administering the
                    commodity supplemental food program, on an
                    annual basis during the certification period
                    applicable to the participant--
                              (i) verifies the address and
                            continued interest of the participant;
                            and
                              (ii) has sufficient reason to
                            determine that the participant still
                            meets the income eligibility standards
                            under paragraph (1), which may include
                            a determination that the participant
                            has a fixed income.
      (h) Each State agency administering a commodity supplemental
    food program serving women, infants, and children shall--
              (1) ensure that written information concerning the
            supplemental nutrition assistance program, the State
            program funded under part A of title IV of the Social
            Security Act (42 U.S.C. 601 et seq.), and the child
            support enforcement program under part D of title IV of
            the Social Security Act (42 U.S.C. 651 et seq.) is
            provided on at least one occasion to each adult who
            applies for or participates in the commodity
            supplemental food program;
              (2) provide each local agency with materials showing
            the maximum income limits, according to family size,
            applicable to pregnant women, infants, and children up
            to age 6 under the medical assistance program
            established under title XIX of the Social Security Act
            (42 U.S.C. 1396 et seq.) (hereinafter referred to in
            this section as the ``medicaid program'') which
            materials may be identical to those provided under
            section 17(e)(3) of the Child Nutrition Act of 1966 (42
            U.S.C. 1786(e)(3)); and
              (3) ensure that local agencies provide to pregnant,
            breast feeding and post partum women, and adults
            applying on behalf of infants or children, who apply to
            the commodity supplemental food program, or who reapply
            to such program, written information about the medicaid
            program and referral to the program or to agencies
            authorized to determine presumptive eligibility for the
            medicaid program, if the individuals are not
            participating in the medicaid program.
      (i) Each State agency administering a commodity supplemental
    food program serving elderly persons shall ensure that written
    information is provided on at least one occasion to each
    elderly participant in or applicant for the commodity
    supplemental food program for the elderly concerning--
              (1) supplemental nutrition assistance benefits
            provided under the Food and Nutrition Act of 2008 (7
            U.S.C. 2011 et seq.);
              (2) the supplemental security income benefits
            provided under title XVI of the Social Security Act (42
            U.S.C. 1381 et seq.); and
              (3) medical assistance provided under title XIX of
            such Act (42 U.S.C. 1396 et seq.) (including medical
            assistance provided to a qualified medicare beneficiary
            (as defined in section 1905(p) of such Act (42 U.S.C.
            1396d(5)))).
      (j)(1) If the Secretary must pay a significantly higher than
    expected price for one or more types of commodities purchased
    under the commodity supplemental food program, the Secretary
    shall promptly determine whether the price is likely to cause
    the number of persons that can be served in the program in a
    fiscal year to decline.
      (2) If the Secretary determines that such a decline would
    occur, the Secretary shall promptly notify the State agencies
    charged with operating the program of the decline and shall
    ensure that a State agency notify all local agencies operating
    the program in the State of the decline.
      (k)(1) The Secretary or a designee of the Secretary shall
    have the authority to--
              (A) determine the amount of, settle, and adjust any
            claim arising under the commodity supplemental food
            program; and
              (B) waive such a claim if the Secretary determines
            that to do so will serve the purposes of the program.
      (2) Nothing contained in this subsection shall be construed
    to diminish the authority of the Attorney General of the United
    States under section 516 of title 28, United States Code, to
    conduct litigation on behalf of the United States.
      (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 and Nutrition Act of 2008 (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.).
      (m) Phase-Out.--Notwithstanding any other provision of law,
    an individual who receives assistance under the commodity
    supplemental food program on the day before the date of
    enactment of this subsection shall continue to receive that
    assistance until the date on which the individual is no longer
    eligible for assistance under the eligibility requirements for
    the program in effect on the day before the date of enactment
    of this subsection.
      (n) Commodity Supplemental Food Program Delivery Pilot
    Program.--
              (1) Purpose.--The purpose of this subsection is to
            award grants for the operation of projects that
            increase the access of low-income elderly persons to
            commodities through home delivery or other means and to
            evaluate such projects.
              (2) In general.--The Secretary shall award, on a
            competitive basis, grants directly to State agencies,
            or to State agencies on behalf of eligible entities, to
            carry out the activities described in paragraph (5).
              (3) Maximum grant award.--A grant awarded to a State
            agency under this subsection shall not exceed--
                      (A) the greater of--
                              (i) the State's commodity
                            supplemental food program caseload at
                            time of application multiplied by 60;
                            or
                              (ii) $10,000; or
                      (B) $4,000,000;
            whichever is less.
              (4) Application.--A State agency seeking a grant
            under this subsection shall submit to the Secretary an
            application in such form, at such time, and containing
            such information as the Secretary may require.
              (5) Grant uses.--A State agency awarded a grant under
            this subsection shall distribute grant funds to
            eligible entities to operate projects that facilitate
            delivery of commodities to participants in the
            commodity supplemental food program, including with
            respect to costs associated with--
                      (A) transportation and distribution of
                    commodities to participants in the commodity
                    supplemental food program, including
                    transportation and distribution services
                    provided by a third party;
                      (B) staffing required to operate delivery
                    services; and
                      (C) outreach to participants or potential
                    participants in the commodity supplemental food
                    program with respect to home delivery.
              (6) Priority.--A State agency awarded a grant under
            this subsection must prioritize eligible entities that
            serve participants in the commodity supplemental food
            program who reside in a rural area.
              (7) Report to the secretary.--Not later than 180 days
            after the end of the fiscal year in which a State
            agency is awarded a grant under this subsection and has
            distributed grant funds to eligible entities, and in
            each succeeding fiscal year until grant funds are
            expended, a State agency shall submit a report to the
            Secretary that includes--
                      (A) a summary of the activities carried out
                    under the project, including the quantity of
                    commodities delivered, number of participants
                    in the commodity supplemental food program
                    served, and total number of deliveries;
                      (B) an assessment of the effectiveness of the
                    project, including a calculation of the average
                    cost per delivery, and an evaluation of any
                    services provided by a third party; and
                      (C) best practices regarding use of home
                    delivery to improve the effectiveness of the
                    commodity supplemental food program.
              (8) Definitions.--In this subsection:
                      (A) Terms in regulations.--The term ``State
                    agency'', ``local agency'', and
                    ``subdistributing agency'' have the meanings
                    given such terms in section 247.1 of title 7 of
                    the Code of Federal Regulations (or any
                    successor regulations).
                      (B) Eligible entity.--The term ``eligible
                    entity'' means--
                              (i) a local agency; or
                              (ii) a subdistributing agency.
                      (C) Rural area.--The term ``rural area'' has
                    the meaning given such term in section 343(a)
                    of the Consolidated Farm and Rural Development
                    Act (7 U.S.C. 1991(a)).
              (9) Authorization of appropriations.--There is
            authorized to be appropriated to carry out this
            subsection $10,000,000 for each of fiscal years 2027
            through 2031 to remain available until expended.

               *       *       *       *       *       *       *

                                  ----------

                        AGRICULTURE AND FOOD ACT OF 1981

               *       *       *       *       *       *       *

                            TITLE XI--MISCELLANEOUS

               *       *       *       *       *       *       *

        DISTRIBUTION OF SURPLUS COMMODITIES; SPECIAL NUTRITION PROJECTS

      Sec. 1114. (a)(1) Notwithstanding any other provision of law,
    whenever Government stocks of commodities are acquired under
    the price support programs and are not likely to be sold by the
    Commodity Credit Corporation or otherwise used in programs of
    commodity sale or distribution, such commodities shall be made
    available without charge or credit to nutrition projects under
    the authority of the Older Americans Act of 1965 (42 U.S.C.
    3001 et seq.), to child nutrition programs providing food
    service, and to food banks participating in the special
    nutrition projects established under section 211 of the
    Agricultural Act of 1980. Such distribution may include bulk
    distribution to congregate nutrition sites and to providers of
    home delivered meals under the Older Americans Act of 1965. The
    Commodity Credit Corporation is authorized to use available
    funds to operate the program under this subsection and to
    further process products to facilitate bonus commodity use.
    Commodities made available under this section shall include,
    but not be limited to, dairy products, wheat or the products
    thereof, rice, honey, and cornmeal.
      (2)(A) For each of fiscal years 2008 through [2023] 2031,
    whenever a commodity is made available without charge or credit
    under any nutrition program administered by the Secretary of
    Agriculture, the Secretary shall encourage consumption of such
    commodity through agreements with private companies under which
    the commodity is reprocessed into end-food products for use by
    eligible recipient agencies. The expense of reprocessing shall
    be paid by such eligible recipient agencies.
      (B) To maintain eligibility to enter into, and to continue,
    any agreement with the Secretary of Agriculture under
    subparagraph (A), a private company shall annually settle all
    accounts with the Secretary and any appropriate State agency
    regarding commodities process under such agreements.
      (C) Whenever commodities are made available to agencies
    pursuant to section 311(a)(4) of the Older Americans Act of
    1965 (42 U.S.C. 3030a(a)(4)), the Secretary shall encourage
    access to processed end products containing the commodities
    when in the Secretary's judgment it is cost effective. The
    requirements of this subparagraph shall be met in the most
    efficient and effective way possible. The Secretary may, among
    other alternatives, use direct purchase, State option contracts
    authorized under section 3A of the Commodity Distribution
    Reform Act and WIC Amendments of 1987 (Public Law 100-237; 7
    U.S.C. 612c note), State processing programs, and (beginning in
    fiscal year 1994) agreements with private companies operated as
    a part of the national commodity processing program.
      (D) In each of fiscal years 1992, 1993, and 1994, the
    Secretary shall conduct a pilot project in not more than three
    States under which any commodity made available to agencies
    pursuant to section 311(a)(4) of the Older Americans Act of
    1965 (42 U.S.C. 3030a(a)(4)) that the Secretary determines to
    be appropriate for reprocessing is made available to the
    agencies as reprocessed end products. The reprocessing shall be
    performed pursuant to agreements with private companies, at the
    expense of the agencies, and operated as part of the national
    commodity processing program established under subparagraph
    (A). In determining the appropriateness of the commodities to
    be reprocessed under the pilot project, the Secretary shall
    consider the common needs of the agencies and the availability
    of processors.
      (b) [Omitted-Amends other Act
      (c) [Omitted-Amends other Act
      (d) Section 4(b) of the Food and Nutrition Act of 2008 shall
    not apply with respect to distribution of surplus commodities
    under section 211 of the Agricultural Act of 1980.

               *       *       *       *       *       *       *

                                  ----------

                  RICHARD B. RUSSELL NATIONAL SCHOOL LUNCH ACT

               *       *       *       *       *       *       *

                   NUTRITIONAL AND OTHER PROGRAM REQUIREMENTS

      Sec. 9. (a)(1)(A) Lunches served by schools participating in
    the school lunch program under this Act shall meet minimum
    nutritional requirements prescribed by the Secretary on the
    basis of tested nutritional research, except that the minimum
    nutritional requirements--
              (i) shall not be construed to prohibit the
            substitution of foods to accommodate the medical or
            other special dietary needs of individual students; and
              (ii) shall, at a minimum, be based on the weekly
            average of the nutrient content of school lunches.
      (B) The Secretary shall provide technical assistance and
    training, including technical assistance and training in the
    preparation of lower-fat versions of foods commonly used in the
    school lunch program under this Act, to schools participating
    in the school lunch program to assist the schools in complying
    with the nutritional requirements prescribed by the Secretary
    pursuant to subparagraph (A) and in providing appropriate meals
    to children with medically certified special dietary needs. The
    Secretary shall provide additional technical assistance to
    schools that are having difficulty maintaining compliance with
    the requirements.
              (2) Fluid milk.--
                      (A) In general.--Lunches served by schools
                    participating in the school lunch program under
                    this [Act--] Act and breakfasts served by
                    schools participating in the school breakfast
                    program under section 4 of the Child Nutrition
                    Act of 1966 (42 U.S.C. 1773)--
                              (i) shall offer students a variety of
                            fluid milk;
                              (ii) may offer students options which
                            may include flavored and unflavored
                            organic or nonorganic whole, reduced-
                            fat, low-fat, and fat-free fluid milk
                            and lactose-free fluid milk, and
                            nondairy beverages that are
                            nutritionally equivalent to fluid milk
                            and meet the nutritional standards
                            established by the Secretary (which
                            shall, among other requirements to be
                            determined by the Secretary, include
                            fortification of calcium, protein,
                            vitamin A, and vitamin D to levels
                            found in cow's milk); and
                              (iii) shall provide a substitute for
                            fluid milk for students whose
                            disability restricts their diet, on
                            receipt of a written statement from a
                            licensed physician, parent, or legal
                            guardian that identifies the disability
                            that restricts the student's diet and
                            that specifies the substitute for fluid
                            milk.
                      (B) Substitutes.--
                              (i) Standards for substitution.--A
                            school may substitute for the fluid
                            milk provided under subparagraph (A), a
                            nondairy beverage that is nutritionally
                            equivalent to fluid milk and meets
                            nutritional standards established by
                            the Secretary (which shall, among other
                            requirements to be determined by the
                            Secretary, include fortification of
                            calcium, protein, vitamin A, and
                            vitamin D to levels found in cow's
                            milk) for students who cannot consume
                            fluid milk because of a medical or
                            other special dietary need other than a
                            disability described in subparagraph
                            (A)(iii).
                              (ii) Notice.--The substitutions may
                            be made if the school notifies the
                            State agency that the school is
                            implementing a variation allowed under
                            this subparagraph, and if the
                            substitution is requested by written
                            statement of a medical authority or by
                            a student's parent or legal guardian
                            that identifies the medical or other
                            special dietary need that restricts the
                            student's diet, except that the school
                            shall not be required to provide
                            beverages other than beverages the
                            school has identified as acceptable
                            substitutes.
                              (iii) Excess expenses borne by school
                            food authority.--Expenses incurred in
                            providing substitutions under this
                            subparagraph that are in excess of
                            expenses covered by reimbursements
                            under this Act shall be paid by the
                            school food authority.
                      (C) Restrictions on sale of milk
                    prohibited.--A school that participates in 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)
                    shall not directly or indirectly restrict the
                    sale or marketing of products described in
                    subparagraph (A)(ii) by the school (or by a
                    person approved by the school) at any time or
                    any place--
                              (i) on the school premises; or
                              (ii) at any school-sponsored event.
                      (D) Saturated fat.--Milk fat included in any
                    fluid milk provided under subparagraph (A)
                    shall not be considered saturated fat for
                    purposes of measuring compliance with the
                    allowable average saturated fat content of a
                    meal under [section 210.10] sections 210.10 and
                    220.8 of title 7, Code of Federal Regulations
                    (or successor regulations).
                      (E) Application.--Subparagraph (B)(ii) is not
                    applicable to a school that offers nondairy
                    beverages under subparagraph (A)(ii).
      (3) Students in senior high schools that participate in the
    school lunch program under this Act (and, when approved by the
    local school district or nonprofit private schools, students in
    any other grade level) shall not be required to accept offered
    foods they do not intend to consume, and any such failure to
    accept offered foods shall not affect the full charge to the
    student for a lunch meeting the requirements of this subsection
    or the amount of payments made under this Act to any such
    school for such lunch.
              (4) Provision of information.--
                      (A) Guidance.--Prior to the beginning of the
                    school year beginning July 2004, the Secretary
                    shall issue guidance to States and school food
                    authorities to increase the consumption of
                    foods and food ingredients that are recommended
                    for increased serving consumption in the most
                    recent Dietary Guidelines for Americans
                    published under section 301 of the National
                    Nutrition Monitoring and Related Research Act
                    of 1990 (7 U.S.C. 5341).
                      (B) Rules.--Not later than 2 years after the
                    date of enactment of this paragraph, the
                    Secretary shall promulgate rules, based on the
                    most recent Dietary Guidelines for Americans,
                    that reflect specific recommendations,
                    expressed in serving recommendations, for
                    increased consumption of foods and food
                    ingredients offered in school nutrition
                    programs under this Act and the Child Nutrition
                    Act of 1966 (42 U.S.C. 1771 et seq.).
                      (C) Procurement and processing of food
                    service products and commodities.--The
                    Secretary shall--
                              (i) identify, develop, and
                            disseminate to State departments of
                            agriculture and education, school food
                            authorities, local educational
                            agencies, and local processing
                            entities, model product specifications
                            and practices for foods offered in
                            school nutrition programs under this
                            Act and the Child Nutrition Act of 1966
                            (42 U.S.C. 1771 et seq.) to ensure that
                            the foods reflect the most recent
                            Dietary Guidelines for Americans
                            published under section 301 of the
                            National Nutrition Monitoring and
                            Related Research Act of 1990 (7 U.S.C.
                            5341);
                              (ii) not later than 1 year after the
                            date of enactment of this
                            subparagraph--
                                      (I) carry out a study to
                                    analyze the quantity and
                                    quality of nutritional
                                    information available to school
                                    food authorities about food
                                    service products and
                                    commodities; and
                                      (II) submit to Congress a
                                    report on the results of the
                                    study that contains such
                                    legislative recommendations as
                                    the Secretary considers
                                    necessary to ensure that school
                                    food authorities have access to
                                    the nutritional information
                                    needed for menu planning and
                                    compliance assessments; and
                              (iii) to the maximum extent
                            practicable, in purchasing and
                            processing commodities for use in
                            school nutrition programs under this
                            Act and the Child Nutrition Act of 1966
                            (42 U.S.C. 1771 et seq.), purchase the
                            widest variety of healthful foods that
                            reflect the most recent Dietary
                            Guidelines for Americans.
              (5) Water.--Schools participating in the school lunch
            program under this Act shall make available to children
            free of charge, as nutritionally appropriate, potable
            water for consumption in the place where meals are
            served during meal service.
      (b)(1)(A) Not later than June 1 of each fiscal year, the
    Secretary shall prescribe income guidelines for determining
    eligibility for free and reduced price lunches during the 12-
    month period beginning July 1 of such fiscal year and ending
    June 30 of the following fiscal year. The income guidelines for
    determining eligibility for free lunches shall be 130 percent
    of the applicable family size income levels contained in the
    nonfarm income poverty guidelines prescribed by the Office of
    Management and Budget, as adjusted annually in accordance with
    subparagraph (B). The income guidelines for determining
    eligibility for reduced price lunches for any school year shall
    be 185 percent of the applicable family size income levels
    contained in the nonfarm income poverty guidelines prescribed
    by the Office of Management and Budget, as adjusted annually in
    accordance with subparagraph (B). The Office of Management and
    Budget guidelines shall be revised at annual intervals, or at
    any shorter interval deemed feasible and desirable.
      (B) The revision required by subparagraph (A) of this
    paragraph shall be made by multiplying--
              (i) the official poverty line (as defined by the
            Office of Management and Budget); by
              (ii) the percentage change in the Consumer Price
            Index during the annual or other interval immediately
            preceding the time at which the adjustment is made.
    Revisions under this subparagraph shall be made not more than
    30 days after the date on which the consumer price index data
    required to compute the adjustment becomes available.
      (2)(A) Following the determination by the Secretary under
    paragraph (1) of this subsection of the income eligibility
    guidelines for each school year, each State educational agency
    shall announce the income eligibility guidelines, by family
    size, to be used by schools in the State in making
    determinations of eligibility for free and reduced price
    lunches. Local school authorities shall, each year, publicly
    announce the income eligibility guidelines for free and reduced
    price lunches on or before the opening of school.
              (B) Applications and descriptive material.--
                      (i) In general.--Applications for free and
                    reduced price lunches, in such form as the
                    Secretary may prescribe or approve, and any
                    descriptive material, shall be distributed to
                    the parents or guardians of children in
                    attendance at the school, and shall contain
                    only the family size income levels for reduced
                    price meal eligibility with the explanation
                    that households with incomes less than or equal
                    to these values would be eligible for free or
                    reduced price lunches.
                      (ii) Income eligibility guidelines.--Forms
                    and descriptive material distributed in
                    accordance with clause (i) may not contain the
                    income eligibility guidelines for free lunches.
                      (iii) Contents of descriptive material.--
                              (I) In general.--Descriptive material
                            distributed in accordance with clause
                            (i) shall contain a notification that--
                                      (aa) participants in the
                                    programs listed in subclause
                                    (II) may be eligible for free
                                    or reduced price meals; and
                                      (bb) documentation may be
                                    requested for verification of
                                    eligibility for free or reduced
                                    price meals.
                              (II) Programs.--The programs referred
                            to in subclause (I)(aa) are--
                                      (aa) the special supplemental
                                    nutrition program for women,
                                    infants, and children
                                    established by section 17 of
                                    the Child Nutrition Act of 1966
                                    (42 U.S.C. 1786);
                                      (bb) the supplemental
                                    nutrition assistance program
                                    established under the Food and
                                    Nutrition Act of 2008 (7 U.S.C.
                                    2011 et seq.);
                                      (cc) the food distribution
                                    program on Indian reservations
                                    established under section 4(b)
                                    of the Food and Nutrition Act
                                    of 2008 (7 U.S.C. 2013(b)); and
                                      (dd) a State program funded
                                    under the program of block
                                    grants to States for temporary
                                    assistance for needy families
                                    established under part A of
                                    title IV of the Social Security
                                    Act (42 U.S.C. 601 et seq.).
              (3) Household applications.--
                      (A) Definition of household application.--In
                    this paragraph, the term ``household
                    application'' means an application for a child
                    of a household to receive free or reduced price
                    school lunches under this Act, or free or
                    reduced price school breakfasts under the Child
                    Nutrition Act of 1966 (42 U.S.C. 1771 et seq.),
                    for which an eligibility determination is made
                    other than under paragraph (4) or (5).
                      (B) Eligibility determination.--
                              (i) In general.--An eligibility
                            determination shall be made on the
                            basis of a complete household
                            application executed by an adult member
                            of the household or in accordance with
                            guidance issued by the Secretary.
                              (ii) Electronic signatures and
                            applications.--A household application
                            may be executed using an electronic
                            signature if--
                                      (I) the application is
                                    submitted electronically; and
                                      (II) the electronic
                                    application filing system meets
                                    confidentiality standards
                                    established by the Secretary.
                      (C) Children in household.--
                              (i) In general.--The household
                            application shall identify the names of
                            each child in the household for whom
                            meal benefits are requested.
                              (ii) Separate applications.--A State
                            educational agency or local educational
                            agency may not request a separate
                            application for each child in the
                            household that attends schools under
                            the same local educational agency.
                      (D) Verification of sample.--
                              (i) Definitions.--In this
                            subparagraph:
                                      (I) Error prone
                                    application.--The term ``error
                                    prone application'' means an
                                    approved household application
                                    that--
                                              (aa) indicates
                                            monthly income that is
                                            within $100, or an
                                            annual income that is
                                            within $1,200, of the
                                            income eligibility
                                            limitation for free or
                                            reduced price meals; or
                                              (bb) in lieu of the
                                            criteria established
                                            under item (aa), meets
                                            criteria established by
                                            the Secretary.
                                      (II) Non-response rate.--The
                                    term ``non-response rate''
                                    means (in accordance with
                                    guidelines established by the
                                    Secretary) the percentage of
                                    approved household applications
                                    for which verification
                                    information has not been
                                    obtained by a local educational
                                    agency after attempted
                                    verification under
                                    subparagraphs (F) and (G).
                              (ii) Verification of sample.--Each
                            school year, a local educational agency
                            shall verify eligibility of the
                            children in a sample of household
                            applications approved for the school
                            year by the local educational agency,
                            as determined by the Secretary in
                            accordance with this subsection.
                              (iii) Sample size.--Except as
                            otherwise provided in this paragraph,
                            the sample for a local educational
                            agency for a school year shall equal
                            the lesser of--
                                      (I) 3 percent of all
                                    applications approved by the
                                    local educational agency for
                                    the school year, as of October
                                    1 of the school year, selected
                                    from error prone applications;
                                    or
                                      (II) 3,000 error prone
                                    applications approved by the
                                    local educational agency for
                                    the school year, as of October
                                    1 of the school year.
                              (iv) Alternative sample size.--
                                      (I) In general.--If the
                                    conditions described in
                                    subclause (IV) are met, the
                                    verification sample size for a
                                    local educational agency shall
                                    be the sample size described in
                                    subclause (II) or (III), as
                                    determined by the local
                                    educational agency.
                                      (II)  3,000/3 percent
                                    option.--The sample size
                                    described in this subclause
                                    shall be the lesser of 3,000,
                                    or 3 percent of, applications
                                    selected at random from
                                    applications approved by the
                                    local educational agency for
                                    the school year, as of October
                                    1 of the school year.
                                      (III)  1,000/1 percent plus
                                    option.--
                                              (aa) In general.--The
                                            sample size described
                                            in this subclause shall
                                            be the sum of--
                                                      (AA) the
                                                    lesser of
                                                    1,000, or 1
                                                    percent of, all
                                                    applications
                                                    approved by the
                                                    local
                                                    educational
                                                    agency for the
                                                    school year, as
                                                    of October 1 of
                                                    the school
                                                    year, selected
                                                    from error
                                                    prone
                                                    applications;
                                                    and
                                                      (BB) the
                                                    lesser of 500,
                                                    or \1/2\ of 1
                                                    percent of,
                                                    applications
                                                    approved by the
                                                    local
                                                    educational
                                                    agency for the
                                                    school year, as
                                                    of October 1 of
                                                    the school
                                                    year, that
                                                    provide a case
                                                    number (in lieu
                                                    of income
                                                    information)
                                                    showing
                                                    participation
                                                    in a program
                                                    described in
                                                    item (bb)
                                                    selected from
                                                    those approved
                                                    applications
                                                    that provide a
                                                    case number (in
                                                    lieu of income
                                                    information)
                                                    verifying the
                                                    participation.
                                              (bb) Programs.--The
                                            programs described in
                                            this item are--
                                                      (AA) the
                                                    supplemental
                                                    nutrition
                                                    assistance
                                                    program
                                                    established
                                                    under the Food
                                                    and Nutrition
                                                    Act of 2008 (7
                                                    U.S.C. 2011 et
                                                    seq.);
                                                      (BB) the food
                                                    distribution
                                                    program on
                                                    Indian
                                                    reservations
                                                    established
                                                    under section
                                                    4(b) of the
                                                    Food and
                                                    Nutrition Act
                                                    of 2008 (7
                                                    U.S.C.
                                                    2013(b)); and
                                                      (CC) a State
                                                    program funded
                                                    under the
                                                    program of
                                                    block grants to
                                                    States for
                                                    temporary
                                                    assistance for
                                                    needy families
                                                    established
                                                    under part A of
                                                    title IV of the
                                                    Social Security
                                                    Act (42 U.S.C.
                                                    601 et seq.)
                                                    that the
                                                    Secretary
                                                    determines
                                                    complies with
                                                    standards
                                                    established by
                                                    the Secretary
                                                    that ensure
                                                    that the
                                                    standards under
                                                    the State
                                                    program are
                                                    comparable to
                                                    or more
                                                    restrictive
                                                    than those in
                                                    effect on June
                                                    1, 1995.
                                      (IV) Conditions.--The
                                    conditions referred to in
                                    subclause (I) shall be met for
                                    a local educational agency for
                                    a school year if--
                                              (aa) the nonresponse
                                            rate for the local
                                            educational agency for
                                            the preceding school
                                            year is less than 20
                                            percent; or
                                              (bb) the local
                                            educational agency has
                                            more than 20,000
                                            children approved by
                                            application by the
                                            local educational
                                            agency as eligible for
                                            free or reduced price
                                            meals for the school
                                            year, as of October 1
                                            of the school year,
                                            and--
                                                      (AA) the
                                                    nonresponse
                                                    rate for the
                                                    preceding
                                                    school year is
                                                    at least 10
                                                    percent below
                                                    the nonresponse
                                                    rate for the
                                                    second
                                                    preceding
                                                    school year; or
                                                      (BB) in the
                                                    case of the
                                                    school year
                                                    beginning July
                                                    2005, the local
                                                    educational
                                                    agency attempts
                                                    to verify all
                                                    approved
                                                    household
                                                    applications
                                                    selected for
                                                    verification
                                                    through use of
                                                    public agency
                                                    records from at
                                                    least 2 of the
                                                    programs or
                                                    sources of
                                                    information
                                                    described in
                                                    subparagraph
                                                    (F)(i).
                              (v) Additional selected
                            applications.--A sample for a local
                            educational agency for a school year
                            under clauses (iii) and (iv)(III)(AA)
                            shall include the number of additional
                            randomly selected approved household
                            applications that are required to
                            comply with the sample size
                            requirements in those clauses.
                      (E) Preliminary review.--
                              (i) Review for accuracy.--
                                      (I) In general.--Prior to
                                    conducting any other
                                    verification activity for
                                    approved household applications
                                    selected for verification, the
                                    local educational agency shall
                                    ensure that the initial
                                    eligibility determination for
                                    each approved household
                                    application is reviewed for
                                    accuracy by an individual other
                                    than the individual making the
                                    initial eligibility
                                    determination, unless otherwise
                                    determined by the Secretary.
                                      (II) Waiver.--The
                                    requirements of subclause (I)
                                    shall be waived for a local
                                    educational agency if the local
                                    educational agency is using a
                                    technology-based solution that
                                    demonstrates a high level of
                                    accuracy, to the satisfaction
                                    of the Secretary, in processing
                                    an initial eligibility
                                    determination in accordance
                                    with the income eligibility
                                    guidelines of the school lunch
                                    program.
                              (ii) Correct eligibility
                            determination.--If the review indicates
                            that the initial eligibility
                            determination is correct, the local
                            educational agency shall verify the
                            approved household application.
                              (iii) Incorrect eligibility
                            determination.--If the review indicates
                            that the initial eligibility
                            determination is incorrect, the local
                            educational agency shall (as determined
                            by the Secretary)--
                                      (I) correct the eligibility
                                    status of the household;
                                      (II) notify the household of
                                    the change;
                                      (III) in any case in which
                                    the review indicates that the
                                    household is not eligible for
                                    free or reduced-price meals,
                                    notify the household of the
                                    reason for the ineligibility
                                    and that the household may
                                    reapply with income
                                    documentation for free or
                                    reduced-price meals; and
                                      (IV) in any case in which the
                                    review indicates that the
                                    household is eligible for free
                                    or reduced-price meals, verify
                                    the approved household
                                    application.
                      (F) Direct verification.--
                              (i) In general.--Subject to clauses
                            (ii) and (iii), to verify eligibility
                            for free or reduced price meals for
                            approved household applications
                            selected for verification, the local
                            educational agency may (in accordance
                            with criteria established by the
                            Secretary) first obtain and use income
                            and program participation information
                            from a public agency administering--
                                      (I) the supplemental
                                    nutrition assistance program
                                    established under the Food and
                                    Nutrition Act of 2008 (7 U.S.C.
                                    2011 et seq.);
                                      (II) the food distribution
                                    program on Indian reservations
                                    established under section 4(b)
                                    of the Food and Nutrition Act
                                    of 2008 (7 U.S.C. 2013(b));
                                      (III) the temporary
                                    assistance for needy families
                                    program funded under part A of
                                    title IV of the Social Security
                                    Act (42 U.S.C. 601 et seq.);
                                      (IV) the State medicaid
                                    program under title XIX of the
                                    Social Security Act (42 U.S.C.
                                    1396 et seq.); or
                                      (V) a similar income-tested
                                    program or other source of
                                    information, as determined by
                                    the Secretary.
                              (ii) Free meals.--Public agency
                            records that may be obtained and used
                            under clause (i) to verify eligibility
                            for free meals for approved household
                            applications selected for verification
                            shall include the most recent available
                            information (other than information
                            reflecting program participation or
                            income before the 180-day period ending
                            on the date of application for free
                            meals) that is relied on to
                            administer--
                                      (I) a program or source of
                                    information described in clause
                                    (i) (other than clause
                                    (i)(IV)); or
                                      (II) the State plan for
                                    medical assistance under title
                                    XIX of the Social Security Act
                                    (42 U.S.C. 1396 et seq.) in--
                                              (aa) a State in which
                                            the income eligibility
                                            limit applied under
                                            section 1902(l)(2)(C)
                                            of that Act (42 U.S.C.
                                            1396a(l)(2)(C)) is not
                                            more than 133 percent
                                            of the official poverty
                                            line described in
                                            section 1902(l)(2)(A)
                                            of that Act (42 U.S.C.
                                            1396a(l)(2)(A)); or
                                              (bb) a State that
                                            otherwise identifies
                                            households that have
                                            income that is not more
                                            than 133 percent of the
                                            official poverty line
                                            described in section
                                            1902(l)(2)(A) of that
                                            Act (42 U.S.C.
                                            1396a(l)(2)(A)).
                              (iii) Reduced price meals.--Public
                            agency records that may be obtained and
                            used under clause (i) to verify
                            eligibility for reduced price meals for
                            approved household applications
                            selected for verification shall include
                            the most recent available information
                            (other than information reflecting
                            program participation or income before
                            the 180-day period ending on the date
                            of application for reduced price meals)
                            that is relied on to administer--
                                      (I) a program or source of
                                    information described in clause
                                    (i) (other than clause
                                    (i)(IV)); or
                                      (II) the State plan for
                                    medical assistance under title
                                    XIX of the Social Security Act
                                    (42 U.S.C. 1396 et seq.) in--
                                              (aa) a State in which
                                            the income eligibility
                                            limit applied under
                                            section 1902(l)(2)(C)
                                            of that Act (42 U.S.C.
                                            1396a(l)(2)(C)) is not
                                            more than 185 percent
                                            of the official poverty
                                            line described in
                                            section 1902(l)(2)(A)
                                            of that Act (42 U.S.C.
                                            1396a(l)(2)(A)); or
                                              (bb) a State that
                                            otherwise identifies
                                            households that have
                                            income that is not more
                                            than 185 percent of the
                                            official poverty line
                                            described in section
                                            1902(l)(2)(A) of that
                                            Act (42 U.S.C.
                                            1396a(l)(2)(A)).
                              (iv) Evaluation.--Not later than 3
                            years after the date of enactment of
                            this subparagraph, the Secretary shall
                            complete an evaluation of--
                                      (I) the effectiveness of
                                    direct verification carried out
                                    under this subparagraph in
                                    decreasing the portion of the
                                    verification sample that must
                                    be verified under subparagraph
                                    (G) while ensuring that
                                    adequate verification
                                    information is obtained; and
                                      (II) the feasibility of
                                    direct verification by State
                                    agencies and local educational
                                    agencies.
                              (v) Expanded use of direct
                            verification.--If the Secretary
                            determines that direct verification
                            significantly decreases the portion of
                            the verification sample that must be
                            verified under subparagraph (G), while
                            ensuring that adequate verification
                            information is obtained, and can be
                            conducted by most State agencies and
                            local educational agencies, the
                            Secretary may require a State agency or
                            local educational agency to implement
                            direct verification through 1 or more
                            of the programs described in clause
                            (i), as determined by the Secretary,
                            unless the State agency or local
                            educational agency demonstrates (under
                            criteria established by the Secretary)
                            that the State agency or local
                            educational agency lacks the capacity
                            to conduct, or is unable to implement,
                            direct verification.
                      (G) Household verification.--
                              (i) In general.--If an approved
                            household application is not verified
                            through the use of public agency
                            records, a local educational agency
                            shall provide to the household written
                            notice that--
                                      (I) the approved household
                                    application has been selected
                                    for verification; and
                                      (II) the household is
                                    required to submit verification
                                    information to confirm
                                    eligibility for free or reduced
                                    price meals.
                              (ii) Phone number.--The written
                            notice in clause (i) shall include a
                            toll-free phone number that parents and
                            legal guardians in households selected
                            for verification can call for
                            assistance with the verification
                            process.
                              (iii) Followup activities.--If a
                            household does not respond to a
                            verification request, a local
                            educational agency shall make at least
                            1 attempt to obtain the necessary
                            verification from the household in
                            accordance with guidelines and
                            regulations promulgated by the
                            Secretary.
                              (iv) Contract authority for school
                            food authorities.--A local educational
                            agency may contract (under standards
                            established by the Secretary) with a
                            third party to assist the local
                            educational agency in carrying out
                            clause (iii).
                      (H) Verification deadline.--
                              (i) General deadline.--
                                      (I) In general.--Subject to
                                    subclause (II), not later than
                                    November 15 of each school
                                    year, a local educational
                                    agency shall complete the
                                    verification activities
                                    required for the school year
                                    (including followup
                                    activities).
                                      (II) Extension.--Under
                                    criteria established by the
                                    Secretary, a State may extend
                                    the deadline established under
                                    subclause (I) for a school year
                                    for a local educational agency
                                    to December 15 of the school
                                    year.
                              (ii) Eligibility changes.--Based on
                            the verification activities, the local
                            educational agency shall make
                            appropriate modifications to the
                            eligibility determinations made for
                            household applications in accordance
                            with criteria established by the
                            Secretary.
                      (I) Local conditions.--In the case of a
                    natural disaster, civil disorder, strike, or
                    other local condition (as determined by the
                    Secretary), the Secretary may substitute
                    alternatives for--
                              (i) the sample size and sample
                            selection criteria established under
                            subparagraph (D); and
                              (ii) the verification deadline
                            established under subparagraph (H).
                      (J) Individual review.--In accordance with
                    criteria established by the Secretary, the
                    local educational agency may, on individual
                    review--
                              (i) decline to verify no more than 5
                            percent of approved household
                            applications selected under
                            subparagraph (D); and
                              (ii) replace the approved household
                            applications with other approved
                            household applications to be verified.
                      (K) Feasibility study.--
                              (i) In general.--The Secretary shall
                            conduct a study of the feasibility of
                            using computer technology (including
                            data mining) to reduce--
                                      (I) overcertification errors
                                    in the school lunch program
                                    under this Act;
                                      (II) waste, fraud, and abuse
                                    in connection with this
                                    paragraph; and
                                      (III) errors, waste, fraud,
                                    and abuse in other nutrition
                                    programs, as determined to be
                                    appropriate by the Secretary.
                              (ii) Report.--Not later than 180 days
                            after the date of enactment of this
                            paragraph, the Secretary shall submit
                            to the Committee on Education and the
                            Workforce of the House of
                            Representatives and the Committee on
                            Agriculture, Nutrition, and Forestry of
                            the Senate a report describing--
                                      (I) the results of the
                                    feasibility study conducted
                                    under this subsection;
                                      (II) how a computer system
                                    using technology described in
                                    clause (i) could be
                                    implemented;
                                      (III) a plan for
                                    implementation; and
                                      (IV) proposed legislation, if
                                    necessary, to implement the
                                    system.
              (4) Direct certification for children in supplemental
            nutrition assistance program households.--
                      (A) In general.--Subject to subparagraph (D),
                    each State agency shall enter into an agreement
                    with the State agency conducting eligibility
                    determinations for the supplemental nutrition
                    assistance program established under the Food
                    and Nutrition Act of 2008 (7 U.S.C. 2011 et
                    seq.).
                      (B) Procedures.--Subject to paragraph (6),
                    the agreement shall establish procedures under
                    which a child who is a member of a household
                    receiving assistance under the supplemental
                    nutrition assistance program shall be certified
                    as eligible for free lunches under this Act and
                    free breakfasts under the Child Nutrition Act
                    of 1966 (42 U.S.C. 1771 et seq.), without
                    further application.
                      (C) Certification.--Subject to paragraph (6),
                    under the agreement, the local educational
                    agency conducting eligibility determinations
                    for a school lunch program under this Act and a
                    school breakfast program under the Child
                    Nutrition Act of 1966 (42 U.S.C. 1771 et seq.)
                    shall certify a child who is a member of a
                    household receiving assistance under the
                    supplemental nutrition assistance program as
                    eligible for free lunches under this Act and
                    free breakfasts under the Child Nutrition Act
                    of 1966 (42 U.S.C. 1771 et seq.), without
                    further application.
                      (D) Applicability.--This paragraph applies
                    to--
                              (i) in the case of the school year
                            beginning July 2006, a school district
                            that had an enrollment of 25,000
                            students or more in the preceding
                            school year;
                              (ii) in the case of the school year
                            beginning July 2007, a school district
                            that had an enrollment of 10,000
                            students or more in the preceding
                            school year; and
                              (iii) in the case of the school year
                            beginning July 2008 and each subsequent
                            school year, each local educational
                            agency.
                      (E) Performance awards.--
                              (i) In general.--Effective for each
                            of the school years beginning July 1,
                            2011, July 1, 2012, and July 1, 2013,
                            the Secretary shall offer performance
                            awards to States to encourage the
                            States to ensure that all children
                            eligible for direct certification under
                            this paragraph are certified in
                            accordance with this paragraph.
                              (ii) Requirements.--For each school
                            year described in clause (i), the
                            Secretary shall--
                                      (I) consider State data from
                                    the prior school year,
                                    including estimates contained
                                    in the report required under
                                    section 4301 of the Food,
                                    Conservation, and Energy Act of
                                    2008 (42 U.S.C. 1758a); and
                                      (II) make performance awards
                                    to not more than 15 States that
                                    demonstrate, as determined by
                                    the Secretary--
                                              (aa) outstanding
                                            performance; and
                                              (bb) substantial
                                            improvement.
                              (iii) Use of funds.--A State agency
                            that receives a performance award under
                            clause (i)--
                                      (I) shall treat the funds as
                                    program income; and
                                      (II) may transfer the funds
                                    to school food authorities for
                                    use in carrying out the
                                    program.
                              (iv) Funding.--
                                      (I) In general.--On October
                                    1, 2011, and each subsequent
                                    October 1 through October 1,
                                    2013, out of any funds in the
                                    Treasury not otherwise
                                    appropriated, the Secretary of
                                    the Treasury shall transfer to
                                    the Secretary--
                                              (aa) $2,000,000 to
                                            carry out clause
                                            (ii)(II)(aa); and
                                              (bb) $2,000,000 to
                                            carry out clause
                                            (ii)(II)(bb).
                                      (II) Receipt and
                                    acceptance.--The Secretary
                                    shall be entitled to receive,
                                    shall accept, and shall use to
                                    carry out this clause the funds
                                    transferred under subclause
                                    (I), without further
                                    appropriation.
                              (v) Payments not subject to judicial
                            review.--A determination by the
                            Secretary whether, and in what amount,
                            to make a performance award under this
                            subparagraph shall not be subject to
                            administrative or judicial review.
                      (F) Continuous improvement plans.--
                              (i) Definition of required
                            percentage.--In this subparagraph, the
                            term ``required percentage'' means--
                                      (I) for the school year
                                    beginning July 1, 2011, 80
                                    percent;
                                      (II) for the school year
                                    beginning July 1, 2012, 90
                                    percent; and
                                      (III) for the school year
                                    beginning July 1, 2013, and
                                    each school year thereafter, 95
                                    percent.
                              (ii) Requirements.--Each school year,
                            the Secretary shall--
                                      (I) identify, using data from
                                    the prior year, including
                                    estimates contained in the
                                    report required under section
                                    4301 of the Food, Conservation,
                                    and Energy Act of 2008 (42
                                    U.S.C. 1758a), States that
                                    directly certify less than the
                                    required percentage of the
                                    total number of children in the
                                    State who are eligible for
                                    direct certification under this
                                    paragraph;
                                      (II) require the States
                                    identified under subclause (I)
                                    to implement a continuous
                                    improvement plan to fully meet
                                    the requirements of this
                                    paragraph, which shall include
                                    a plan to improve direct
                                    certification for the following
                                    school year; and
                                      (III) assist the States
                                    identified under subclause (I)
                                    to develop and implement a
                                    continuous improvement plan in
                                    accordance with subclause (II).
                              (iii) Failure to meet performance
                            standard.--
                                      (I) In general.--A State that
                                    is required to develop and
                                    implement a continuous
                                    improvement plan under clause
                                    (ii)(II) shall be required to
                                    submit the continuous
                                    improvement plan to the
                                    Secretary, for the approval of
                                    the Secretary.
                                      (II) Requirements.--At a
                                    minimum, a continuous
                                    improvement plan under
                                    subclause (I) shall include--
                                              (aa) specific
                                            measures that the State
                                            will use to identify
                                            more children who are
                                            eligible for direct
                                            certification,
                                            including improvements
                                            or modifications to
                                            technology, information
                                            systems, or databases;
                                              (bb) a timeline for
                                            the State to implement
                                            those measures; and
                                              (cc) goals for the
                                            State to improve direct
                                            certification results.
                      (G) Without further application.--
                              (i) In general.--In this paragraph,
                            the term ``without further
                            application'' means that no action is
                            required by the household of the child.
                              (ii) Clarification.--A requirement
                            that a household return a letter
                            notifying the household of eligibility
                            for direct certification or eligibility
                            for free school meals does not meet the
                            requirements of clause (i).
              (5) Discretionary certification.--Subject to
            paragraph (6), any local educational agency may certify
            any child as eligible for free lunches or breakfasts,
            without further application, by directly communicating
            with the appropriate State or local agency to obtain
            documentation of the status of the child as--
                      (A) a member of a family that is receiving
                    assistance under the temporary assistance for
                    needy families program funded under part A of
                    title IV of the Social Security Act (42 U.S.C.
                    601 et seq.) that the Secretary determines
                    complies with standards established by the
                    Secretary that ensure that the standards under
                    the State program are comparable to or more
                    restrictive than those in effect on June 1,
                    1995;
                      (B) a homeless child or youth (defined as 1
                    of the individuals described in section 725(2)
                    of the McKinney-Vento Homeless Assistance Act
                    (42 U.S.C. 11434a(2));
                      (C) served by the runaway and homeless youth
                    grant program established under the Runaway and
                    Homeless Youth Act (42 U.S.C. 5701 et seq.);
                      (D) a migratory child (as defined in section
                    1309 of the Elementary and Secondary Education
                    Act of 1965 (20 U.S.C. 6399)); or
                      (E)(i) a foster child whose care and
                    placement is the responsibility of an agency
                    that administers a State plan under part B or E
                    of title IV of the Social Security Act (42
                    U.S.C. 621 et seq.); or
                      (ii) a foster child who a court has placed
                    with a caretaker household.
              (6) Use or disclosure of information.--
                      (A) In general.--The use or disclosure of any
                    information obtained from an application for
                    free or reduced price meals, or from a State or
                    local agency referred to in paragraph (3)(F),
                    (4), or (5), shall be limited to--
                              (i) a person directly connected with
                            the administration or enforcement of
                            this Act or the Child Nutrition Act of
                            1966 (42 U.S.C. 1771 et seq.)
                            (including a regulation promulgated
                            under either Act);
                              (ii) a person directly connected with
                            the administration or enforcement of--
                                      (I) a Federal education
                                    program;
                                      (II) a State health or
                                    education program administered
                                    by the State or local
                                    educational agency (other than
                                    a program carried out under
                                    title XIX or XXI of the Social
                                    Security Act (42 U.S.C. 1396 et
                                    seq.; 42 U.S.C. 1397aa et
                                    seq.)); or
                                      (III) a Federal, State, or
                                    local means-tested nutrition
                                    program with eligibility
                                    standards comparable to the
                                    school lunch program under this
                                    Act;
                              (iii)(I) the Comptroller General of
                            the United States for audit and
                            examination authorized by any other
                            provision of law; and
                              (II) notwithstanding any other
                            provision of law, a Federal, State, or
                            local law enforcement official for the
                            purpose of investigating an alleged
                            violation of any program covered by
                            this paragraph or paragraph (3)(F),
                            (4), or (5);
                              (iv) a person directly connected with
                            the administration of the State
                            medicaid program under title XIX of the
                            Social Security Act (42 U.S.C. 1396 et
                            seq.) or the State children's health
                            insurance program under title XXI of
                            that Act (42 U.S.C. 1397aa et seq.)
                            solely for the purposes of--
                                      (I) identifying children
                                    eligible for benefits under,
                                    and enrolling children in,
                                    those programs, except that
                                    this subclause shall apply only
                                    to the extent that the State
                                    and the local educational
                                    agency or school food authority
                                    so elect; and
                                      (II) verifying the
                                    eligibility of children for
                                    programs under this Act or the
                                    Child Nutrition Act of 1966 (42
                                    U.S.C. 1771 et seq.); and
                              (v) a third party contractor
                            described in paragraph (3)(G)(iv).
                      (B) Limitation on information provided.--
                    Information provided under clause (ii) or (v)
                    of subparagraph (A) shall be limited to the
                    income eligibility status of the child for whom
                    application for free or reduced price meal
                    benefits is made or for whom eligibility
                    information is provided under paragraph (3)(F),
                    (4), or (5), unless the consent of the parent
                    or guardian of the child for whom application
                    for benefits was made is obtained.
                      (C) Criminal penalty.--A person described in
                    subparagraph (A) who publishes, divulges,
                    discloses, or makes known in any manner, or to
                    any extent not authorized by Federal law
                    (including a regulation), any information
                    obtained under this subsection shall be fined
                    not more than $1,000 or imprisoned not more
                    than 1 year, or both.
                      (D) Requirements for waiver of
                    confidentiality.--A State that elects to
                    exercise the option described in subparagraph
                    (A)(iv)(I) shall ensure that any local
                    educational agency or school food authority
                    acting in accordance with that option--
                              (i) has a written agreement with 1 or
                            more State or local agencies
                            administering health programs for
                            children under titles XIX and XXI of
                            the Social Security Act (42 U.S.C. 1396
                            et seq. and 1397aa et seq.) that
                            requires the health agencies to use the
                            information obtained under subparagraph
                            (A) to seek to enroll children in those
                            health programs; and
                              (ii)(I) notifies each household, the
                            information of which shall be disclosed
                            under subparagraph (A), that the
                            information disclosed will be used only
                            to enroll children in health programs
                            referred to in subparagraph (A)(iv);
                            and
                              (II) provides each parent or guardian
                            of a child in the household with an
                            opportunity to elect not to have the
                            information disclosed.
                      (E) Use of disclosed information.--A person
                    to which information is disclosed under
                    subparagraph (A)(iv)(I) shall use or disclose
                    the information only as necessary for the
                    purpose of enrolling children in health
                    programs referred to in subparagraph (A)(iv).
              (7) Free and reduced price policy statement.--
                      (A) In general.--After the initial
                    submission, a local educational agency shall
                    not be required to submit a free and reduced
                    price policy statement to a State educational
                    agency under this Act unless there is a
                    substantive change in the free and reduced
                    price policy of the local educational agency.
                      (B) Routine change.--A routine change in the
                    policy of a local educational agency (such as
                    an annual adjustment of the income eligibility
                    guidelines for free and reduced price meals)
                    shall not be sufficient cause for requiring the
                    local educational agency to submit a policy
                    statement.
              (8) Communications.--
                      (A) In general.--Any communication with a
                    household under this subsection or subsection
                    (d) shall be in an understandable and uniform
                    format and, to the maximum extent practicable,
                    in a language that parents and legal guardians
                    can understand.
                      (B) Electronic availability.--In addition to
                    the distribution of applications and
                    descriptive material in paper form as provided
                    for in this paragraph, the applications and
                    material may be made available electronically
                    via the Internet.
              (9) Eligibility for free and reduced price lunches.--
                      (A) Free lunches.--Any child who is a member
                    of a household whose income, at the time the
                    application is submitted, is at an annual rate
                    which does not exceed the applicable family
                    size income level of the income eligibility
                    guidelines for free lunches, as determined
                    under paragraph (1), shall be served a free
                    lunch.
                      (B) Reduced price lunches.--
                              (i) In general.--Any child who is a
                            member of a household whose income, at
                            the time the application is submitted,
                            is at an annual rate greater than the
                            applicable family size income level of
                            the income eligibility guidelines for
                            free lunches, as determined under
                            paragraph (1), but less than or equal
                            to the applicable family size income
                            level of the income eligibility
                            guidelines for reduced price lunches,
                            as determined under paragraph (1),
                            shall be served a reduced price lunch.
                              (ii) Maximum price.--The price
                            charged for a reduced price lunch shall
                            not exceed 40 cents.
                      (C) Duration.--Except as otherwise specified
                    in paragraph (3)(E), (3)(H)(ii), and section
                    11(a), eligibility for free or reduced price
                    meals for any school year shall remain in
                    effect--
                              (i) beginning on the date of
                            eligibility approval for the current
                            school year; and
                              (ii) ending on a date during the
                            subsequent school year determined by
                            the Secretary.
      (10) No physical segregation of or other discrimination
    against any child eligible for a free lunch or a reduced price
    lunch under this subsection shall be made by the school nor
    shall there be any overt identification of any child by special
    tokens or tickets, announced or published list of names, or by
    other means.
      (11) Any child who has a parent or guardian who (A) is
    responsible for the principal support of such child and (B) is
    unemployed shall be served a free or reduced price lunch,
    respectively, during any period (i) in which such child's
    parent or guardian continues to be unemployed and (ii) the
    income of the child's parents or guardians during such period
    of unemployment falls within the income eligibility criteria
    for free lunches or reduced price lunches, respectively, based
    on the current rate of income of such parents or guardians.
    Local educational agencies shall publicly announce that such
    children are eligible for free or reduced price lunch, and
    shall make determinations with respect to the status of any
    parent or guardian of any child under clauses (A) and (B) of
    the preceding sentence on the basis of a statement executed in
    such form as the Secretary may prescribe by such parent or
    guardian. No physical segregation of, or other discrimination
    against, any child eligible for a free or reduced price lunch
    under this paragraph shall be made by the school nor shall
    there be any overt identification of any such child by special
    tokens or tickets, announced or published lists of names, or by
    any other means.
      (12)(A) A child shall be considered automatically eligible
    for a free lunch and breakfast under this Act and the Child
    Nutrition Act of 1966 (42 U.S.C. 1771 et seq.), respectively,
    without further application or eligibility determination, if
    the child is--
              (i) a member of a household receiving assistance
            under the supplemental nutrition assistance program
            authorized under the Food and Nutrition Act of 2008 (7
            U.S.C. 2011 et seq.);
              (ii) a member of a family (under the State program
            funded under part A of title IV of the Social Security
            Act (42 U.S.C. 601 et seq.)) that the Secretary
            determines complies with standards established by the
            Secretary that ensure that the standards under the
            State program are comparable to or more restrictive
            than those in effect on June 1, 1995;
              (iii) enrolled as a participant in a Head Start
            program authorized under the Head Start Act (42 U.S.C.
            9831 et seq.), on the basis of a determination that the
            child meets the eligibility criteria prescribed under
            section 645(a)(1)(B) of the Head Start Act (42 U.S.C.
            9840(a)(1)(B));
                      (iv) a homeless child or youth (defined as 1
                    of the individuals described in section 725(2)
                    of the McKinney-Vento Homeless Assistance Act
                    (42 U.S.C. 11434a(2)));
                      (v) served by the runaway and homeless youth
                    grant program established under the Runaway and
                    Homeless Youth Act (42 U.S.C. 5701 et seq.);
                      (vi) a migratory child (as defined in section
                    1309 of the Elementary and Secondary Education
                    Act of 1965 (20 U.S.C. 6399)); or
                      (vii)(I) a foster child whose care and
                    placement is the responsibility of an agency
                    that administers a State plan under part B or E
                    of title IV of the Social Security Act (42
                    U.S.C. 621 et seq.); or
                              (II) a foster child who a court has
                            placed with a caretaker household.
      (B) Proof of receipt of supplemental nutrition assistance
    program benefits or assistance under the State program funded
    under part A of title IV of the Social Security Act (42 U.S.C.
    601 et seq.) that the Secretary determines complies with
    standards established by the Secretary that ensure that the
    standards under the State program are comparable to or more
    restrictive than those in effect on June 1, 1995, or of
    enrollment or participation in a Head Start program on the
    basis described in subparagraph (A)(iii), shall be sufficient
    to satisfy any verification requirement imposed under this
    subsection.
              (13) Exclusion of certain military housing
            allowances.--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.
              (14) Combat pay.--
                      (A) Definition of combat pay.--In this
                    paragraph, the term ``combat pay'' means any
                    additional payment under chapter 5 of title 37,
                    United States Code, or otherwise designated by
                    the Secretary to be appropriate for exclusion
                    under this paragraph, that is received by or
                    from a member of the United States Armed Forces
                    deployed to a designated combat zone, if the
                    additional pay--
                              (i) is the result of deployment to or
                            service in a combat zone; and
                              (ii) was not received immediately
                            prior to serving in a combat zone.
                      (B) Exclusion.--Combat pay shall not be
                    considered to be income for the purpose of
                    determining the eligibility for free or reduced
                    price meals of a child who is a member of the
                    household of a member of the United States
                    Armed Forces.
              (15) Direct certification for children receiving
            medicaid benefits.--
                      (A) Definitions.--In this paragraph:
                              (i) Eligible child.--The term
                            ``eligible child'' means a child--
                                      (I)(aa) who is eligible for
                                    and receiving medical
                                    assistance under the Medicaid
                                    program; and
                                      (bb) who is a member of a
                                    family with an income as
                                    measured by the Medicaid
                                    program before the application
                                    of any expense, block, or other
                                    income disregard, that does not
                                    exceed 133 percent of the
                                    poverty line (as defined in
                                    section 673(2) of the Community
                                    Services Block Grant Act (42
                                    U.S.C. 9902(2), including any
                                    revision required by such
                                    section)) applicable to a
                                    family of the size used for
                                    purposes of determining
                                    eligibility for the Medicaid
                                    program; or
                                      (II) who is a member of a
                                    household (as that term is
                                    defined in section 245.2 of
                                    title 7, Code of Federal
                                    Regulations (or successor
                                    regulations) with a child
                                    described in subclause (I).
                              (ii) Medicaid program.--The term
                            ``Medicaid program'' means the program
                            of medical assistance established under
                            title XIX of the Social Security Act
                            (42 U.S.C. 1396 et seq.).
                      (B) Demonstration project.--
                              (i) In general.--The Secretary,
                            acting through the Administrator of the
                            Food and Nutrition Service and in
                            cooperation with selected State
                            agencies, shall conduct a demonstration
                            project in selected local educational
                            agencies to determine whether direct
                            certification of eligible children is
                            an effective method of certifying
                            children for free lunches and
                            breakfasts under section 9(b)(1)(A) of
                            this Act and section 4(e)(1)(A) of the
                            Child Nutrition Act of 1966 (42 U.S.C.
                            1773(e)(1)(A)).
                              (ii) Scope of project.--The Secretary
                            shall carry out the demonstration
                            project under this subparagraph--
                                      (I) for the school year
                                    beginning July 1, 2012, in
                                    selected local educational
                                    agencies that collectively
                                    serve 2.5 percent of students
                                    certified for free and reduced
                                    price meals nationwide, based
                                    on the most recent available
                                    data;
                                      (II) for the school year
                                    beginning July 1, 2013, in
                                    selected local educational
                                    agencies that collectively
                                    serve 5 percent of students
                                    certified for free and reduced
                                    price meals nationwide, based
                                    on the most recent available
                                    data; and
                                      (III) for the school year
                                    beginning July 1, 2014, and
                                    each subsequent school year, in
                                    selected local educational
                                    agencies that collectively
                                    serve 10 percent of students
                                    certified for free and reduced
                                    price meals nationwide, based
                                    on the most recent available
                                    data.
                              (iii) Purposes of the project.--At a
                            minimum, the purposes of the
                            demonstration project shall be--
                                      (I) to determine the
                                    potential of direct
                                    certification with the Medicaid
                                    program to reach children who
                                    are eligible for free meals but
                                    not certified to receive the
                                    meals;
                                      (II) to determine the
                                    potential of direct
                                    certification with the Medicaid
                                    program to directly certify
                                    children who are enrolled for
                                    free meals based on a household
                                    application; and
                                      (III) to provide an estimate
                                    of the effect on Federal costs
                                    and on participation 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) of direct
                                    certification with the Medicaid
                                    program.
                              (iv) Cost estimate.--For each of 2
                            school years of the demonstration
                            project, the Secretary shall estimate
                            the cost of the direct certification of
                            eligible children for free school meals
                            through data derived from--
                                      (I) the school meal programs
                                    authorized under this Act and
                                    the Child Nutrition Act of 1966
                                    (42 U.S.C. 1771 et seq.);
                                      (II) the Medicaid program;
                                    and
                                      (III) interviews with a
                                    statistically representative
                                    sample of households.
                      (C) Agreement.--
                              (i) In general.--Not later than July
                            1 of the first school year during which
                            a State agency will participate in the
                            demonstration project, the State agency
                            shall enter into an agreement with the
                            1 or more State agencies conducting
                            eligibility determinations for the
                            Medicaid program.
                              (ii) Without further application.--
                            Subject to paragraph (6), the agreement
                            described in subparagraph (D) shall
                            establish procedures under which an
                            eligible child shall be certified for
                            free lunches under this Act and free
                            breakfasts under section 4 of the Child
                            Nutrition Act of 1966 (42 U.S.C. 1773),
                            without further application (as defined
                            in paragraph (4)(G)).
                      (D) Certification.--For the school year
                    beginning on July 1, 2012, and each subsequent
                    school year, subject to paragraph (6), the
                    local educational agencies participating in the
                    demonstration project shall certify an eligible
                    child as eligible for free lunches under this
                    Act and free breakfasts under the Child
                    Nutrition Act of 1966 (42 U.S.C. 1771 et seq.),
                    without further application (as defined in
                    paragraph (4)(G)).
                      (E) Site selection.--
                              (i) In general.--To be eligible to
                            participate in the demonstration
                            project under this subsection, a State
                            agency shall submit to the Secretary an
                            application at such time, in such
                            manner, and containing such information
                            as the Secretary may require.
                              (ii) Considerations.--In selecting
                            States and local educational agencies
                            for participation in the demonstration
                            project, the Secretary may take into
                            consideration such factors as the
                            Secretary considers to be appropriate,
                            which may include--
                                      (I) the rate of direct
                                    certification;
                                      (II) the share of individuals
                                    who are eligible for benefits
                                    under the supplemental
                                    nutrition assistance program
                                    established under the Food and
                                    Nutrition Act of 2008 (7 U.S.C.
                                    2011 et seq.) who participate
                                    in the program, as determined
                                    by the Secretary;
                                      (III) the income eligibility
                                    limit for the Medicaid program;
                                      (IV) the feasibility of
                                    matching data between local
                                    educational agencies and the
                                    Medicaid program;
                                      (V) the socioeconomic profile
                                    of the State or local
                                    educational agencies; and
                                      (VI) the willingness of the
                                    State and local educational
                                    agencies to comply with the
                                    requirements of the
                                    demonstration project.
                      (F) Access to data.--For purposes of
                    conducting the demonstration project under this
                    paragraph, the Secretary shall have access to--
                              (i) educational and other records of
                            State and local educational and other
                            agencies and institutions receiving
                            funding or providing benefits for 1 or
                            more programs authorized under this Act
                            or the Child Nutrition Act of 1966 (42
                            U.S.C. 1771 et seq.); and
                              (ii) income and program participation
                            information from public agencies
                            administering the Medicaid program.
                      (G) Report to congress.--
                              (i) In general.--Not later than
                            October 1, 2014, the Secretary shall
                            submit to the Committee on Education
                            and Labor of the House of
                            Representatives and the Committee on
                            Agriculture, Nutrition, and Forestry of
                            the Senate, an interim report that
                            describes the results of the
                            demonstration project required under
                            this paragraph.
                              (ii) Final report.--Not later than
                            October 1, 2015, the Secretary shall
                            submit a final report to the committees
                            described in clause (i).
                      (H) Funding.--
                              (i) In general.--On October 1, 2010,
                            out of any funds in the Treasury not
                            otherwise appropriated, the Secretary
                            of the Treasury shall transfer to the
                            Secretary to carry out subparagraph (G)
                            $5,000,000, to remain available until
                            expended.
                              (ii) Receipt and acceptance.--The
                            Secretary shall be entitled to receive,
                            shall accept, and shall use to carry
                            out subparagraph (G) the funds
                            transferred under clause (i), without
                            further appropriation.
      (c) School lunch programs under this Act shall be operated on
    a nonprofit basis. Commodities purchased under the authority of
    section 32 of the Act of August 24, 1935, may be donated by the
    Secretary to schools, in accordance with the needs as
    determined by local school authorities, for utilization in the
    school lunch program under this Act as well as to other schools
    carrying out nonprofit school lunch programs and institutions
    authorized to receive such commodities. The requirements of
    this section relating to the service of meals without cost or
    at a reduced cost shall apply to the lunch program of any
    school utilizing commodities donated under any provision of
    law.
      (d)(1) The Secretary shall require as a condition of
    eligibility for receipt of free or reduced price lunches that
    the member of the household who executes the application
    furnish the last 4 digits of the social security account number
    of the parent or guardian who is the primary wage earner
    responsible for the care of the child for whom the application
    is made, or that of another appropriate adult member of the
    child's household, as determined by the Secretary.
      (2) No member of a household may be provided a free or
    reduced price lunch under this Act unless--
              (A) appropriate documentation relating to the income
            of such household (as prescribed by the Secretary) has
            been provided to the appropriate local educational
            agency so that the local educational agency may
            calculate the total income of such household;
              (B) documentation showing that the household is
            participating in the supplemental nutrition assistance
            program under the Food and Nutrition Act of 2008 has
            been provided to the appropriate local educational
            agency;
              (C) documentation has been provided to the
            appropriate local educational agency showing that the
            family is receiving assistance under the State program
            funded under part A of title IV of the Social Security
            Act that the Secretary determines complies with
            standards established by the Secretary that ensure that
            the standards under the State program are comparable to
            or more restrictive than those in effect on June 1,
            1995;
              (D) documentation has been provided to the
            appropriate local educational agency showing that the
            child meets the criteria specified in clauses (iv) or
            (v) of subsection (b)(12)(A);
              (E) documentation has been provided to the
            appropriate local educational agency showing the status
            of the child as a migratory child (as defined in
            section 1309 of the Elementary and Secondary Education
            Act of 1965 (20 U.S.C. 6399));
              (F)(i) documentation has been provided to the
            appropriate local educational agency showing the status
            of the child as a foster child whose care and placement
            is the responsibility of an agency that administers a
            State plan under part B or E of title IV of the Social
            Security Act (42 U.S.C. 621 et seq.); or
                      (ii) documentation has been provided to the
                    appropriate local educational agency showing
                    the status of the child as a foster child who a
                    court has placed with a caretaker household; or
              (G) documentation has been provided to the
            appropriate local educational agency showing the status
            of the child as an eligible child (as defined in
            subsection (b)(15)(A)).
      (e) A school or school food authority participating in a
    program under this Act may not contract with a food service
    company to provide a la carte food service unless the company
    agrees to offer free, reduced price, and full-price
    reimbursable meals to all eligible children.
      (f) Nutritional Requirements.--
              (1) In general.--Schools that are participating in
            the school lunch program or school breakfast program
            shall serve lunches and breakfasts that--
                      (A) are consistent with the goals of the most
                    recent Dietary Guidelines for Americans
                    published under section 301 of the National
                    Nutrition Monitoring and Related Research Act
                    of 1990 (7 U.S.C. 5341); and
                      (B) consider the nutrient needs of children
                    who may be at risk for inadequate food intake
                    and food insecurity.
      (2) To assist schools in meeting the requirements of this
    subsection, the Secretary--
              (A) shall--
                      (i) develop, and provide to schools,
                    standardized recipes, menu cycles, and food
                    product specification and preparation
                    techniques; and
                      (ii) provide to schools information regarding
                    nutrient standard menu planning, assisted
                    nutrient standard menu planning, and food-based
                    menu systems; and
              (B) may provide to schools information regarding
            other approaches, as determined by the Secretary.
      (3) Use of any reasonable approach.--
              (A) In general.--A school food service authority may
            use any reasonable approach, within guidelines
            established by the Secretary in a timely manner, to
            meet the requirements of this subsection, including--
                      (i) using the school nutrition meal pattern
                    in effect for the 1994-1995 school year; and
                      (ii) using any of the approaches described in
                    paragraph (3).
              (B) Nutrient analysis.--The Secretary may not require
            a school to conduct or use a nutrient analysis to meet
            the requirements of this subsection.
              (4) Waiver of requirement for weighted averages for
            nutrient analysis.--During the period ending on
            September 30, 2010, the Secretary shall not require the
            use of weighted averages for nutrient analysis of menu
            items and foods offered or served as part of a meal
            offered or served 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).
      (g) Not later than 1 year after the date of enactment of this
    subsection, the Secretary shall provide a notification to
    Congress that justifies the need for production records
    required under section 210.10(b) of title 7, Code of Federal
    Regulations, and describes how the Secretary has reduced
    paperwork relating to the school lunch and school breakfast
    programs.
      (h) Food Safety.--
              (1) In general.--A school participating in 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) shall--
                      (A) at least twice during each school year,
                    obtain a food safety inspection conducted by a
                    State or local governmental agency responsible
                    for food safety inspections;
                      (B) post in a publicly visible location a
                    report on the most recent inspection conducted
                    under subparagraph (A); and
                      (C) on request, provide a copy of the report
                    to a member of the public.
              (2) State and local government inspections.--Nothing
            in paragraph (1) prevents any State or local government
            from adopting or enforcing any requirement for more
            frequent food safety inspections of schools.
              (3) Audits and reports by states.--For fiscal year
            2026, each State shall annually--
                      (A) audit food safety inspections of schools
                    conducted under paragraphs (1) and (2); and
                      (B) submit to the Secretary a report of the
                    results of the audit.
              (4) Audit by the secretary.--For fiscal year 2026,
            the Secretary shall annually audit State reports of
            food safety inspections of schools submitted under
            paragraph (3).
              (5) School food safety program.--
                      (A) In general.--Each school food authority
                    shall implement a school food safety program,
                    in the preparation and service of each meal
                    served to children, that complies with any
                    hazard analysis and critical control point
                    system established by the Secretary.
                      (B) Applicability.--Subparagraph (A) shall
                    apply to any facility or part of a facility in
                    which food is stored, prepared, or served for
                    the purposes of the school nutrition programs
                    under this Act or section 4 of the Child
                    Nutrition Act of 1966 (42 U.S.C. 1773).
      (i) Single Permanent Agreement Between State Agency and
    School Food Authority; Common Claims Form.--
              (1) In general.--If a single State agency administers
            any combination of the school lunch program under this
            Act, the school breakfast program under section 4 of
            the Child Nutrition Act of 1966 (42 U.S.C. 1773), the
            summer food service program for children under section
            13 of this Act, or the child and adult care food
            program under section 17 of this Act, the agency
            shall--
                      (A) require each school food authority to
                    submit to the State agency a single agreement
                    with respect to the operation by the authority
                    of the programs administered by the State
                    agency; and
                      (B) use a common claims form with respect to
                    meals and supplements served under the programs
                    administered by the State agency.
              (2) Additional requirement.--The agreement described
            in paragraph (1)(A) shall be a permanent agreement that
            may be amended as necessary.
      (j) Purchases of Locally Produced Foods.--The Secretary
    shall--
              (1) encourage institutions receiving funds under this
            Act and the Child Nutrition Act of 1966 (42 U.S.C. 1771
            et seq.) to purchase unprocessed agricultural products,
            both locally grown and locally raised, to the maximum
            extent practicable and appropriate;
              (2) advise institutions participating in a program
            described in paragraph (1) of the policy described in
            that paragraph and paragraph (3) and post information
            concerning the policy on the website maintained by the
            Secretary; and
              (3) allow institutions receiving funds under this Act
            and the Child Nutrition Act of 1966 (42 U.S.C. 1771 et
            seq.), including the Department of Defense Fresh Fruit
            and Vegetable Program, to use a geographic preference
            for the procurement of unprocessed agricultural
            products, both locally grown and locally raised.
      (k) Information on the School Nutrition Environment.--
              (1) In general.--The Secretary shall--
                      (A) establish requirements for local
                    educational agencies 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 report information about the school
                    nutrition environment, for all schools under
                    the jurisdiction of the local educational
                    agencies, to the Secretary and to the public in
                    the State on a periodic basis; and
                      (B) provide training and technical assistance
                    to States and local educational agencies on the
                    assessment and reporting of the school
                    nutrition environment, including the use of any
                    assessment materials developed by the
                    Secretary.
              (2) Requirements.--In establishing the requirements
            for reporting on the school nutrition environment under
            paragraph (1), the Secretary shall--
                      (A) include information pertaining to food
                    safety inspections, local wellness policies,
                    meal program participation, the nutritional
                    quality of program meals, and other information
                    as determined by the Secretary; and
                      (B) ensure that information is made available
                    to the public by local educational agencies in
                    an accessible, easily understood manner in
                    accordance with guidelines established by the
                    Secretary.
              (3) Authorization of appropriations.--There are
            authorized to be appropriated to carry out this
            subsection such sums as are necessary for each of
            fiscal years 2011 through 2015.
      (l) Food Donation Program.--
              (1) In general.--Each school and local educational
            agency participating in the school lunch program under
            this Act may donate any food not consumed under such
            program to eligible local food banks or charitable
            organizations.
              (2) Guidance.--
                      (A) In general.--Not later than 180 days
                    after the date of the enactment of this
                    subsection, the Secretary shall develop and
                    publish guidance to schools and local
                    educational agencies participating in the
                    school lunch program under this Act to assist
                    such schools and local educational agencies in
                    donating food under this subsection.
                      (B) Updates.--The Secretary shall update such
                    guidance as necessary.
              (3) Liability.--Any school or local educational
            agency making donations pursuant to this subsection
            shall be exempt from civil and criminal liability to
            the extent provided under the Bill Emerson Good
            Samaritan Food Donation Act (42 U.S.C. 1791).
              (4) Definition.--In this subsection, the term
            ``eligible local food banks or charitable
            organizations'' means any food bank or charitable
            organization which is exempt from tax under section
            501(c)(3) of the Internal Revenue Code of 1986 (26
            U.S.C. 501(c)(3)).

               *       *       *       *       *       *       *

                    MISCELLANEOUS PROVISIONS AND DEFINITIONS

      Sec. 12. (a) States, State educational agencies, and schools
    participating in the school lunch program under this Act shall
    keep such accounts and records as may be necessary to enable
    the Secretary to determine whether the provisions of this Act
    are being complied with. Such accounts and records shall be
    available at any reasonable time for inspection and audit by
    representatives of the Secretary and shall be preserved for
    such period of time, not in excess of five years, as the
    Secretary determines is necessary.
      (b) Agreements.--
              (1) In general.--The Secretary shall incorporate, in
            the agreement of the Secretary with the State agencies
            and Indian Tribal organizations administering programs
            authorized under this Act or the Child Nutrition Act of
            1966 (42 U.S.C. 1771 et seq.), the express requirements
            with respect to the operation of the programs to the
            extent applicable and such other provisions as in the
            opinion of the Secretary are reasonably necessary or
            appropriate to effectuate the purposes of this Act and
            the Child Nutrition Act of 1966 (42 U.S.C. 1771 et
            seq.).
              (2) Expectations for use of funds.--Agreements
            described in paragraph (1) shall include a provision
            that--
                      (A) supports full use of Federal funds
                    provided to State agencies and Indian Tribal
                    organizations for the administration of
                    programs authorized under this Act or the Child
                    Nutrition Act of 1966 (42 U.S.C. 1771 et seq.);
                    and
                      (B) excludes the Federal funds from State and
                    Indian Tribal organization budget restrictions
                    or limitations including, at a minimum--
                              (i) hiring freezes;
                              (ii) work furloughs; and
                              (iii) travel restrictions.
      (c) In carrying out the provisions of this Act, the Secretary
    shall not impose any requirement with respect to teaching
    personnel, curriculum, instruction, methods of instruction, and
    materials of instruction in any school.
      (d) For the purposes of this Act--
              (1) Child.--
                      (A) In general.--The term ``child'' includes
                    an individual, regardless of age, who--
                              (i) is determined by a State
                            educational agency, in accordance with
                            regulations prescribed by the
                            Secretary, to have one or more
                            disabilities; and
                              (ii) is attending any institution, as
                            defined in section 17(a), or any
                            nonresidential public or nonprofit
                            private school of high school grade or
                            under, for the purpose of participating
                            in a school program established for
                            individuals with disabilities.
                      (B) Relationship to child and adult care food
                    program.--No institution that is not otherwise
                    eligible to participate in the program under
                    section 17 shall be considered eligible because
                    of this paragraph.
              (2) ``Commodity only schools'' means schools that do
            not participate in the school lunch program under this
            Act, but which receive commodities made available by
            the Secretary for use by such schools in nonprofit
            lunch programs.
              (3) Disability.--The term ``disability'' has the
            meaning given the term in the Rehabilitation Act of
            1973 for purposes of title II of that Act (29 U.S.C 760
            et seq.).
              (4) Local educational agency.--
                      (A) In general.--The term ``local educational
                    agency'' has the meaning given the term in
                    section 8101 of the Elementary and Secondary
                    Education Act of 1965.
                      (B) Inclusion.--The term ``local educational
                    agency'' includes, in the case of a private
                    nonprofit school, an appropriate entity
                    determined by the Secretary.
              (5) ``School'' means (A) any public or nonprofit
            private school of high school grade or under, and (B)
            any public or licensed nonprofit private residential
            child care institution (including, but not limited to,
            orphanages and homes for the mentally retarded, but
            excluding Job Corps Centers funded by the Department of
            Labor). For purposes of this paragraph, the term
            ``nonprofit'', when applied to any such private school
            or institution, means any such school or institution
            which is exempt from tax under section 501(c)(3) of the
            Internal Revenue Code of 1986.
              (6) ``School year'' means the annual period from July
            1 through June 30.
              (7) ``Secretary'' means the Secretary of Agriculture.
              (8) ``State'' means any of the fifty States, the
            District of Columbia, the Commonwealth of Puerto Rico,
            the Virgin Islands, Guam, American Samoa, or the
            Commonwealth of the Northern Mariana Islands.
              (9) ``State educational agency'' means, as the State
            legislature may determine, (A) the chief State school
            officer (such as the State superintendent of public
            instruction, commissioner of education, or similar
            officer), or (B) a board of education controlling the
            State department of education.
      (e) The value of assistance to children under this Act shall
    not be considered to be income or resources for any purposes
    under any Federal or State laws, including laws relating to
    taxation and welfare and public assistance programs.
      (f) In providing assistance for breakfasts, lunches, suppers,
    and supplements served in Alaska, Hawaii, Guam, American Samoa,
    Puerto Rico, the Virgin Islands of the United States, and the
    Commonwealth of the Northern Mariana Islands, the Secretary may
    establish appropriate adjustments for each such State to the
    national average payment rates prescribed under sections 4, 11,
    13, and 17 of this Act and section 4 of the Child Nutrition Act
    of 1966, to reflect the differences between the costs of
    providing meals and supplements in those States and the costs
    of providing meals and supplements in all other States.
      (g) Whoever embezzles, willfully misapplies, steals, or
    obtains by fraud any funds, assets, or property that are the
    subject of a grant or other form of assistance under this Act
    or the Child Nutrition Act of 1966, whether received directly
    or indirectly from the United States Department of Agriculture,
    or whoever receives, conceals, or retains such funds, assets,
    or property to personal use or gain, knowing such funds,
    assets, or property have been embezzled, willfully misapplied,
    stolen, or obtained by fraud shall, if such funds, assets, or
    property are of the value of $100 or more, be fined not more
    than $25,000 or imprisoned not more than five years, or both,
    or, if such funds, assets, or property are of a value of less
    than $100, shall be fined not more than $1,000 or imprisoned
    for not more than one year, or both.
      (h) No provision of this Act or of the Child Nutrition Act of
    1966 shall require any school receiving funds under this Act
    and the Child Nutrition Act of 1966 to account separately for
    the cost incurred in the school lunch and school breakfast
    programs.
      (i) Facilities, equipment, and personnel provided to a school
    food authority for a program authorized under this Act or the
    Child Nutrition Act of 1966 may be used, as determined by a
    local educational agency, to support a nonprofit nutrition
    program for the elderly, including a program funded under the
    Older Americans Act of 1965.
      (j)(1) Except as provided in paragraph (2), the Secretary may
    provide reimbursements for final claims for service of meals,
    supplements, and milk submitted to State agencies by eligible
    schools, summer camps, family day care homes, institutions, and
    service institutions only if--
              (A) the claims have been submitted to the State
            agencies not later than 60 days after the last day of
            the month for which the reimbursement is claimed; and
              (B) the final program operations report for the month
            is submitted to the Secretary not later than 90 days
            after the last day of the month.
      (2) The Secretary may waive the requirements of paragraph (1)
    at the discretion of the Secretary.
      (l)(1)(A) Except as provided in paragraph (4), the Secretary
    may waive any requirement under this Act or the Child Nutrition
    Act of 1966 (42 U.S.C. 1771 et seq.), or any regulation issued
    under either such Act, for a State or eligible service provider
    that requests a waiver if--
              (i) the Secretary determines that the waiver of the
            requirement would facilitate the ability of the State
            or eligible service provider to carry out the purpose
            of the program;
              (ii) the State or eligible service provider has
            provided notice and information to the public regarding
            the proposed waiver; and
              (iii) the State or eligible service provider
            demonstrates to the satisfaction of the Secretary that
            the waiver will not increase the overall cost of the
            program to the Federal Government, and, if the waiver
            does increase the overall cost to the Federal
            Government, the cost will be paid from non-Federal
            funds.
      (B) The notice and information referred to in subparagraph
    (A)(ii) shall be provided in the same manner in which the State
    or eligible service provider customarily provides similar
    notices and information to the public.
      (2)(A) To request a waiver under paragraph (1), a State or
    eligible service provider (through the appropriate
    administering State agency) shall submit an application to the
    Secretary that--
              (i) identifies the statutory or regulatory
            requirements that are requested to be waived;
              (ii) in the case of a State requesting a waiver,
            describes actions, if any, that the State has
            undertaken to remove State statutory or regulatory
            barriers;
              (iii) describes the goal of the waiver to improve
            services under the program and the expected outcomes if
            the waiver is granted; and
              (iv) includes a description of the impediments to the
            efficient operation and administration of the program.
      (B) An application described in subparagraph (A) shall be
    developed by the State or eligible service provider and shall
    be submitted to the Secretary by the State.
      (3) The Secretary shall act promptly on a waiver request
    contained in an application submitted under paragraph (2) and
    shall either grant or deny the request. The Secretary shall
    state in writing the reasons for granting or denying the
    request.
      (4) The Secretary may not grant a waiver under this
    subsection that increases Federal costs or that relates to--
              (A) the nutritional content of meals served;
              (B) Federal reimbursement rates;
              (C) the provision of free and reduced price meals;
              (D) limits on the price charged for a reduced price
            meal;
              (E) maintenance of effort;
              (F) equitable participation of children in private
            schools;
              (G) distribution of funds to State and local school
            food service authorities and service institutions
            participating in a program under this Act and the Child
            Nutrition Act of 1966 (42 U.S.C. 1771 et seq.);
              (H) the disclosure of information relating to
            students receiving free or reduced price meals and
            other recipients of benefits;
              (I) prohibiting the operation of a profit producing
            program;
              (J) the sale of competitive foods;
              (K) the commodity distribution program under section
            14;
              (L) the special supplemental nutrition program
            authorized under section 17 of the Child Nutrition Act
            of 1966 (42 U.S.C. 1786); or
              (M) enforcement of any constitutional or statutory
            right of an individual, including any right under--
                      (i) title VI of the Civil Rights Act of 1964
                    (42 U.S.C. 2000d et seq.);
                      (ii) section 504 of the Rehabilitation Act of
                    1973 (29 U.S.C. 794);
                      (iii) title IX of the Education Amendments of
                    1972 (20 U.S.C. 1681 et seq.);
                      (iv) the Age Discrimination Act of 1975 (42
                    U.S.C. 6101 et seq.);
                      (v) the Americans with Disabilities Act of
                    1990 (42 U.S.C. 12101 et seq.); and
                      (vi) the Individuals with Disabilities
                    Education Act (20 U.S.C. 1400 et seq.).
      (5) The Secretary shall periodically review the performance
    of any State or eligible service provider for which the
    Secretary has granted a waiver under this subsection and shall
    terminate the waiver if the performance of the State or service
    provider has been inadequate to justify a continuation of the
    waiver. The Secretary shall terminate the waiver if, after
    periodic review, the Secretary determines that the waiver has
    resulted in an increase in the overall cost of the program to
    the Federal Government and the increase has not been paid for
    in accordance with paragraph (1)(A)(iii).
      (6) The Secretary shall annually submit to the Committee on
    Education and Labor of the House of Representatives and the
    Committee on Agriculture, Nutrition, and Forestry of the
    Senate, a report--
              (A) summarizing the use of waivers by the State and
            eligible service providers;
              (B) describing whether the waivers resulted in
            improved services to children;
              (C) describing the impact of the waivers on providing
            nutritional meals to participants; and
              (D) describing how the waivers reduced the quantity
            of paperwork necessary to administer the program.
      (7) As used in this subsection, the term ``eligible service
    provider'' means--
              (A) a local school food service authority;
              (B) a service institution or private nonprofit
            organization described in section 13; or
              (C) a family or group day care home sponsoring
            organization described in section 17.
      (m) Procurement Training.--
              (1) In general.--Subject to the availability of funds
            made available under paragraph (4), the Secretary shall
            provide technical assistance and training to States,
            State agencies, schools, and school food authorities in
            the procurement of goods and services for programs
            under this Act or the Child Nutrition Act of 1966 (42
            U.S.C. 1771 et seq.) (other than section 17 of that Act
            (42 U.S.C. 1786)).
              (2) Buy american training.--Activities carried out
            under paragraph (1) shall include technical assistance
            and training to ensure compliance with subsection (n).
              (3) Procuring safe foods.--Activities carried out
            under paragraph (1) shall include technical assistance
            and training on procuring safe foods, including the use
            of model specifications for procuring safe foods.
              (4) Authorization of appropriations.--There is
            authorized to be appropriated to carry out this
            subsection $1,000,000 for each of fiscal years 2010
            through 2015, to remain available until expended.
      (n) Buy American.--
              (1) Definition of domestic commodity or product.--In
            this subsection, the term ``domestic commodity or
            product'' means--
                      (A) an agricultural commodity that is
                    produced in the United States; and
                      (B) a food product that is processed in the
                    United States substantially using agricultural
                    commodities that are produced in the United
                    States.
              (2) Requirement.--
                      [(A) In general.--Subject to subparagraph
                    (B), the Secretary shall require that a school
                    food authority purchase, to the maximum extent
                    practicable, domestic commodities or products.]
                      (A) Requirements.--
                              (i) Purchase expenditures by
                            category.--Subject to clause (ii) and
                            subparagraph (B), the Secretary shall
                            require that a school food authority
                            purchase, with respect to each food
                            purchase category designated by the
                            Agricultural Marketing Service, at
                            least 95 percent domestic products and
                            commodities in each such category.
                              (ii) Domestically unavailable
                            products and commodities.--Domestically
                            unavailable products and commodities
                            included on a list issued pursuant to
                            clause (iii) with respect to a school
                            year and purchased by a school food
                            authority during such school year shall
                            not be used to calculate whether such
                            school food authority meets the
                            requirements under clause (i).
                              (iii) Updated list.--Not later than 6
                            months after the date of the enactment
                            of this subparagraph, and every 2 years
                            thereafter, the Secretary shall make
                            available to school food authorities a
                            list of domestically unavailable
                            products and commodities.
                              (iv) Limited waiver authority.--
                            Except with respect to a domestically
                            unavailable product or commodity
                            included on a list pursuant to clause
                            (iii), the Secretary may not waive or
                            make accommodations for any of the
                            requirements of this subparagraph.
                              (v) Prohibition on certain products
                            from china or russia.--The Secretary
                            shall prohibit school food authorities
                            from purchasing raw or processed
                            poultry products or seafood imported
                            into the United States from the
                            People's Republic of China or the
                            Russian Federation.
                      (B) Limitations.--Subparagraph (A) shall
                    apply
                    only to--
                              (i) a school food authority located
                            in the
                            contiguous United States; and
                              (ii) a purchase of a domestic
                            commodity or product for 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).
              (3) Applicability to hawaii.--Paragraph (2)(A) shall
            apply to a school food authority in Hawaii with respect
            to domestic commodities or products that are produced
            in Hawaii 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).
              (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).
      (o) Procurement Contracts.--In acquiring a good or service
    for programs under this Act or the Child Nutrition Act of 1966
    (42 U.S.C. 1771 et seq.) (other than section 17 of that Act (42
    U.S.C. 1786)), a State, State agency, school, or school food
    authority may enter into a contract with a person that has
    provided specification information to the State, State agency,
    school, or school food authority for use in developing contract
    specifications for acquiring such good or service.
      (p) Price for a Paid Lunch.--
              (1) Definition of paid lunch.--In this subsection,
            the term ``paid lunch'' means a reimbursable lunch
            served to students who are not certified to receive
            free or reduced price meals.
              (2) Requirement.--
                      (A) In general.--For each school year
                    beginning July 1, 2011, each school food
                    authority shall establish a price for paid
                    lunches in accordance with this subsection.
                      (B) Lower price.--
                              (i) In general.--In the case of a
                            school food authority that established
                            a price for a paid lunch in the
                            previous school year that was less than
                            the difference between the total
                            Federal reimbursement for a free lunch
                            and the total Federal reimbursement for
                            a paid lunch, the school food authority
                            shall establish an average price for a
                            paid lunch that is not less than the
                            price charged in the previous school
                            year, as adjusted by a percentage equal
                            to the sum obtained by adding--
                                      (I) 2 percent; and
                                      (II) the percentage change in
                                    the Consumer Price Index for
                                    All Urban Consumers (food away
                                    from home index) used to
                                    increase the Federal
                                    reimbursement rate under
                                    section 11 for the most recent
                                    school year for which data are
                                    available, as published in the
                                    Federal Register.
                              (ii) Rounding.--A school food
                            authority may round the adjusted price
                            for a paid lunch under clause (i) down
                            to the nearest 5 cents.
                              (iii) Maximum required price
                            increase.--
                                      (I) In general.--The maximum
                                    annual average price increase
                                    required to meet the
                                    requirements of this
                                    subparagraph shall not exceed
                                    10 cents for any school food
                                    authority.
                                      (II) Discretionary
                                    increase.--A school food
                                    authority may increase the
                                    average price for a paid lunch
                                    for a school year by more than
                                    10 cents.
                      (C) Equal or greater price.--
                              (i) In general.--In the case of a
                            school food authority that established
                            an average price for a paid lunch in
                            the previous school year that was equal
                            to or greater than the difference
                            between the total Federal reimbursement
                            for a free lunch and the total Federal
                            reimbursement for a paid lunch, the
                            school food authority shall establish
                            an average price for a paid lunch that
                            is not less than the difference between
                            the total Federal reimbursement for a
                            free lunch and the total Federal
                            reimbursement for a paid lunch.
                              (ii) Rounding.--A school food
                            authority may round the adjusted price
                            for a paid lunch under clause (i) down
                            to the nearest 5 cents.
              (3) Exceptions.--
                      (A) Reduction in price.--A school food
                    authority may reduce the average price of a
                    paid lunch established under this subsection if
                    the State agency ensures that funding from non-
                    Federal sources (other than in-kind
                    contributions) is added to the nonprofit school
                    food service account of the school food
                    authority in an amount estimated to be equal to
                    at least the difference between--
                              (i) the average price required of the
                            school food authority for the paid
                            lunches under paragraph (2); and
                              (ii) the average price charged by the
                            school food authority for the paid
                            lunches.
                      (B) Non-federal sources.--For the purposes of
                    subparagraph (A), non-Federal sources does not
                    include revenue from the sale of foods sold in
                    competition with meals served under the school
                    lunch program authorized under this Act or the
                    school breakfast program established by section
                    4 of the Child Nutrition Act of 1966 (42 U.S.C.
                    1773).
                      (C) Other programs.--This subsection shall
                    not apply to lunches provided under section 17
                    of this Act.
              (4) Regulations.--The Secretary shall establish
            procedures to carry out this subsection, including
            collecting and publishing the prices that school food
            authorities charge for paid meals on an annual basis
            and procedures that allow school food authorities to
            average the pricing of paid lunches at schools
            throughout the jurisdiction of the school food
            authority.
      (q) Nonprogram Food Sales.--
              (1) Definition of nonprogram food.--In this
            subsection:
                      (A) In general.--The term ``nonprogram food''
                    means food that is--
                              (i) sold in a participating school
                            other than a reimbursable meal provided
                            under this Act or the Child Nutrition
                            Act of 1966 (42 U.S.C. 1771 et seq.);
                            and
                              (ii) purchased using funds from the
                            nonprofit school food service account
                            of the school food authority of the
                            school.
                      (B) Inclusion.--The term ``nonprogram food''
                    includes food that is sold in competition with
                    a program established under this Act or the
                    Child Nutrition Act of 1966 (42 U.S.C. 1771 et
                    seq.).
              (2) Revenues.--
                      (A) In general.--The proportion of total
                    school food service revenue provided by the
                    sale of nonprogram foods to the total revenue
                    of the school food service account shall be
                    equal to or greater than the proportion of
                    total food costs associated with obtaining
                    nonprogram foods to the total costs associated
                    with obtaining program and nonprogram foods
                    from the account.
                      (B) Accrual.--All revenue from the sale of
                    nonprogram foods shall accrue to the nonprofit
                    school food service account of a participating
                    school food authority.
                      (C) Effective date.--This subsection shall be
                    effective beginning on July 1, 2011.
      (r) Disqualified Schools, Institutions, and Individuals.--Any
    school, institution, service institution, facility, or
    individual that has been terminated from any program authorized
    under this Act or the Child Nutrition Act of 1966 (42 U.S.C.
    1771 et seq.) and is on a list of disqualified institutions and
    individuals under section 13 or section 17(d)(5)(E) of this Act
    may not be approved to participate in or administer any program
    authorized under this Act or the Child Nutrition Act of 1966
    (42 U.S.C. 1771 et seq.).

               *       *       *       *       *       *       *

                                  ----------

              DEPARTMENT OF AGRICULTURE REORGANIZATION ACT OF 1994

               *       *       *       *       *       *       *

              TITLE II--DEPARTMENT OF AGRICULTURE REORGANIZATION

               *       *       *       *       *       *       *

                Subtitle A--General Reorganization Authorities

               *       *       *       *       *       *       *

    SEC. 220A. OFFICE OF BIOTECHNOLOGY POLICY.

      (a) In General.--The Secretary shall establish in the
    Department an Office of Biotechnology Policy to provide for the
    effective coordination of policies and activities within the
    Department of Agriculture related to biotechnology,
    biomanufacturing, synthetic biology, and related emerging
    technologies, while taking into account the effects of
    regulatory actions of other government agencies.
      (b) Director.--The Office of Biotechnology Policy shall be
    under the direction of a Director appointed by the Secretary,
    who shall report directly to the Secretary or a designee of the
    Secretary.
      (c) Duties.--The Director of the Office of Biotechnology
    Policy shall--
              (1) develop and coordinate Department policy on
            biotechnology and related topics;
              (2) coordinate activities and services of the
            Department on biotechnology and related topics,
            including--
                      (A) research and development;
                      (B) extension and education;
                      (C) communication;
                      (D) regulation and labeling; and
                      (E) commercialization, use, and trade;
              (3) assist other offices and agencies of the
            Department in fulfilling their responsibilities related
            to biotechnology under applicable Federal law; and
              (4) perform such other functions as may be required
            under Federal law or prescribed by the Secretary.
      (d) Interagency Coordination.--In carrying out the duties
    under subsection (b), the Director of the Office of
    Biotechnology Policy shall provide leadership to ensure
    coordination of interagency activities with the Environmental
    Protection Agency, the Food and Drug Administration, and other
    Federal and State agencies.
      (e) Outreach.--The Director of the Office of Biotechnology
    Policy shall consult with biotechnology developers, academics,
    agricultural producers, and other entities that may be affected
    by biotechnology-related activities or actions of the
    Department or other Federal and State agencies as necessary in
    carrying out the Office's responsibilities under this section.
      (f) Authorization of Appropriations.--There is authorized to
    be appropriated to carry out this section $1,000,000 for each
    of fiscal years 2027 through 2031.

    SEC. 221. OFFICE OF HOMELAND SECURITY.

      (a) Definition of Agriculture and Food Defense.--In this
    section, the term ``agriculture and food defense'' means any
    action to prevent, protect against, mitigate the effects of,
    respond to, or recover from a naturally occurring,
    unintentional, or intentional threat to the agriculture and
    food system.
      (b) Authorization.--The Secretary shall establish in the
    Department the Office of Homeland Security.
      (c) Executive Director.--The Office of Homeland Security
    shall be headed by an Executive Director, who shall be known as
    the Executive Director of Homeland Security.
      (d) Duties.--The Executive Director of Homeland Security
    shall--
              (1) serve as the principal advisor to the Secretary
            on homeland security, including emergency management
            and agriculture and food defense;
              (2) coordinate activities of the Department,
            including policies, processes, budget needs, and
            oversight relating to homeland security, including
            emergency management and agriculture and food defense;
              (3) act as the primary liaison on behalf of the
            Department with other Federal departments and agencies
            in activities relating to homeland security, including
            emergency management and agriculture and food defense,
            and provide for interagency coordination and data
            sharing;
              (4)(A) coordinate in the Department the gathering of
            information relevant to early warning and awareness of
            threats and risks to the food and agriculture critical
            infrastructure sector; and
              (B) share that information with, and provide
            assistance with interpretation and risk
            characterization of that information to, the
            intelligence community (as defined in section 3 of the
            National Security Act of 1947 (50 U.S.C. 3003)), law
            enforcement agencies, the Secretary of Defense, the
            Secretary of Homeland Security, the Secretary of Health
            and Human Services, and State fusion centers (as
            defined in section 210A(j) of the Homeland Security Act
            of 2002 (6 U.S.C. 124h(j));
              (5) liaise with the Director of National Intelligence
            to assist in the development of periodic assessments
            and intelligence estimates, or other intelligence
            products, that support the defense of the food and
            agriculture critical infrastructure sector;
              (6) coordinate the conduct, evaluation, and
            improvement of exercises to identify and eliminate gaps
            in preparedness and response;
              (7) produce a Department-wide centralized strategic
            coordination plan to provide a high-level perspective
            of the operations of the Department relating to
            homeland security, including emergency management and
            agriculture and food defense; [and]
              (8) conducting annual cross-sector crisis simulation
            exercises related to a food-related emergency or
            disruption; and
              [(8)] (9) carry out other appropriate duties, as
            determined by the Secretary.
      (e) Agriculture and Food Threat Awareness Partnership
    Program.--
              (1) Interagency exchange program.--The Secretary, in
            partnership with the intelligence community (as defined
            in section 3 of the National Security Act of 1947 (50
            U.S.C. 3003)) and fusion centers (as defined in section
            210A(j) of the Homeland Security Act of 2002 (6 U.S.C.
            124h(j)) that have analysis and intelligence
            capabilities relating to the defense of the food and
            agriculture critical infrastructure sector, shall
            establish and carry out an interagency exchange program
            of personnel and information to improve communication
            and analysis for the defense of the food and
            agriculture critical infrastructure sector.
              (2) Collaboration with federal, state, and local
            authorities.--To carry out the program established
            under paragraph (1), the Secretary may--
                      (A) enter into 1 or more cooperative
                    agreements or contracts with Federal, State, or
                    local authorities that have analysis and
                    intelligence capabilities and expertise
                    relating to the defense of the food and
                    agriculture critical infrastructure sector; and
                      (B) carry out any other activity under any
                    other authority of the Secretary that is
                    appropriate to engage the authorities described
                    in subparagraph (A) for the defense of the food
                    and agriculture critical infrastructure sector,
                    as determined by the Secretary.
      (f) Detailees.--The Secretary may detail employees of the
    Department of Agriculture to, and accept employees detailed
    from, the intelligence community (as defined in section 3 of
    the National Security Act of 1947) to assist in carrying out
    the duties of the Office of Homeland Security.
      (g) Risk Assessments and Reports.--
              (1) Risk assessments.--Not later than 1 year after
            the date of enactment of the Farm, Food, and National
            Security Act of 2026, and not less than every 2 years
            thereafter, the Secretary shall conduct an assessment
            of risks and security vulnerabilities to the food and
            agriculture critical infrastructure sector, including--
                      (A) naturally occurring, unintentional, or
                    intentional threats, including chemical,
                    biological, cybersecurity, or bioterrorism
                    attacks;
                      (B) influence of state-owned enterprise;
                      (C) control of and access to agricultural
                    data;
                      (D) foreign acquisition of intellectual
                    property, agricultural assets, and land;
                      (E) agricultural input shortages and
                    dependence on foreign-sourced inputs;
                      (F) supply chain and trade disruptions;
                      (G) science and technology cooperation;
                      (H) unequal investments in research,
                    development, and commercialization;
                      (I) incongruent regulatory policies; and
                      (J) any other vulnerabilities identified by
                    the Secretary.
              (2) Briefing and report.--
                      (A) In general.--Not later than 180 days
                    after the completion of a risk assessment under
                    paragraph (1), the Secretary shall provide a
                    briefing on the results of the risk assessment
                    and submit to the Committee on Agriculture and
                    the Committee on Homeland Security of the House
                    of Representatives and the Committee on
                    Agriculture, Nutrition, and Forestry and the
                    Committee on Homeland Security and Governmental
                    Affairs of the Senate a report that includes--
                              (i) an assessment of any gaps or
                            limitations in national security
                            efforts related to the food and
                            agriculture critical infrastructure
                            sector;
                              (ii) any actions taken by the
                            Secretary to address any gaps or
                            limitations identified under clause
                            (i), including through interagency
                            coordination, threat information
                            sharing, and stakeholder outreach;
                              (iii) any recommendations for
                            administrative, regulatory, or
                            legislative actions that can be taken
                            to reduce any gaps or limitations
                            identified under clause (i),
                            including--
                                      (I) recommendations to reduce
                                    the dependence on foreign-
                                    source inputs necessary for the
                                    food and agriculture critical
                                    infrastructure sector; and
                                      (II) recommendations to
                                    address the cybersecurity
                                    threats to, and security
                                    vulnerabilities in, the food
                                    and agriculture critical
                                    infrastructure sector; and
                              (iv) resources the Secretary requires
                            to address current and future national
                            security vulnerabilities related to the
                            food and agriculture critical
                            infrastructure sector.
                      (B) Exemption from access to congressionally
                    mandated reports act.--A report required under
                    subparagraph (A) shall be exempt from the
                    requirements of the Access to Congressionally
                    Mandated Reports Act (subtitle D of title VII
                    of Public Law 117-263; 136 Stat. 3677).

    SEC. 222. OFFICE OF URBAN AGRICULTURE AND INNOVATIVE PRODUCTION.

      (a) Office.--
              (1) In general.--The Secretary shall establish in the
            Department an Office of Urban Agriculture and
            Innovative Production.
              (2) Director.--The Secretary shall appoint a senior
            official to serve as the Director of the Office of
            Urban Agriculture and Innovative Production (referred
            to in this section as the ``Director'').
              (3) Mission.--The mission of the Office of Urban
            Agriculture and Innovative Production shall be to
            encourage and promote urban, indoor, and other emerging
            agricultural production practices, including--
                      (A) community gardens and farms located in
                    urban areas, suburbs, and urban clusters;
                      (B) rooftop farms, outdoor vertical
                    production, and green walls;
                      (C) indoor farms, greenhouses, and high-tech
                    vertical technology farms;
                      (D) controlled-environment agriculture,
                    including hydroponic, aeroponic, and aquaponic
                    farm facilities; [and]
                      (E) using the resources of the Department and
                    of State, Tribal, and local agencies to provide
                    technical assistance for business
                    incorporation, navigating local zoning, and
                    managing farm tract numbers for smaller,
                    noncontiguous parcels to growers implementing
                    activities described in this paragraph;
                      (F) using the resources of the Department and
                    of State, Tribal, and local agencies to promote
                    conservation techniques unique to urban
                    agriculture and innovative production,
                    including techniques that address stormwater
                    runoff and the impacted nature of urban land
                    and the subsurface of the land;
                      (G) assisting urban and innovative producers
                    in navigating Federal, State, Tribal, and local
                    policies and regulations that impact business
                    or operations; and
                      [(E)] (H) other innovations in agricultural
                    production, as determined by the Secretary.
              (4) Responsibilities.--The Director shall be
            responsible for engaging in activities to carry out the
            mission described in paragraph (3), including by--
                      (A) managing programs, including for
                    community gardens, urban farms, rooftop
                    agriculture, and indoor vertical production;
                      (B) advising the Secretary;
                      (C) coordinating with the agencies and
                    officials of the Department to update relevant
                    programs;
                      (D) engaging in stakeholder relations and
                    developing external partnerships;
                      (E) identifying common State and municipal
                    best practices for navigating local policies;
                      (F) coordinating networks of community
                    gardens and facilitating connections to local
                    food banks, in partnership with the Food and
                    Nutrition Service; and
                      (G) collaborating with other Federal
                    agencies.
      (b) Urban Agriculture and Innovative Production Advisory
    Committee.--
              (1) In general.--Not later than 180 days after the
            date of enactment of this section, the Secretary shall
            establish an Urban Agriculture and Innovative
            Production Advisory Committee (referred to in this
            subsection as the ``Committee'') to advise the
            Secretary on--
                      (A) the development of policies and outreach
                    relating to urban, indoor, and other emerging
                    agricultural production practices; and
                      (B) any other aspects of the implementation
                    of this section.
              (2) Membership.--
                      (A) In general.--The Committee shall be
                    composed of 12 members, of whom--
                              (i) 4 shall be individuals who are
                            agricultural producers, of whom--
                                      (I) 2 individuals shall be
                                    agricultural producers located
                                    in an urban area or urban
                                    cluster; and
                                      (II) 2 individuals shall be
                                    farmers that use innovative
                                    technology;
                              (ii) 2 shall be representatives from
                            an institution of higher education or
                            extension program;
                              (iii) 1 shall be an individual who
                            represents a nonprofit organization,
                            which may include a public health,
                            environmental, or community
                            organization;
                              (iv) 1 shall be an individual who
                            represents business and economic
                            development, which may include a
                            business development entity, a chamber
                            of commerce, a city government, or a
                            planning organization;
                              (v) 1 shall be an individual with
                            supply chain experience, which may
                            include a food aggregator, wholesale
                            food distributor, food hub, or an
                            individual who has direct-to-consumer
                            market experience;
                              (vi) 1 shall be an individual from a
                            financing entity; and
                              (vii) 2 shall be individuals with
                            related experience or expertise in
                            urban, indoor, and other emerging
                            agriculture production practices, as
                            determined by the Secretary.
                      (B) Initial appointments.--The Secretary
                    shall appoint the members of the Committee not
                    later than 180 days after the date of enactment
                    of this section.
              (3) Period of appointment; vacancies.--
                      (A) In general.--Except as provided in
                    subparagraph (B), a member of the Committee
                    shall be appointed for a term of 3 years.
                      (B) Initial appointments.--Of the members
                    first appointed to the Committee--
                              (i) 4 of the members, as determined
                            by the Secretary, shall be appointed
                            for a term of 3 years;
                              (ii) 4 of the members, as determined
                            by the Secretary, shall be appointed
                            for a term of 2 years; and
                              (iii) 4 of the members, as determined
                            by the Secretary, shall be appointed
                            for a term of 1 year.
                      (C) Vacancies.--Any vacancy in the
                    Committee--
                              (i) shall not affect the powers of
                            the Committee; and
                              (ii) shall be filled as soon as
                            practicable in the same manner as the
                            original appointment.
                      (D) Consecutive terms.--An initial appointee
                    of the committee may serve an additional
                    consecutive term if the member is reappointed
                    by the Secretary.
              (4) Meetings.--
                      (A) Frequency.--The Committee shall meet not
                    fewer than 3 times per year.
                      (B) Initial meeting.--Not later than 180 days
                    after the date on which the members are
                    appointed under paragraph (2)(B), the Committee
                    shall hold the first meeting of the Committee.
              (5) Duties.--
                      (A) In general.--The Committee shall--
                              (i) develop recommendations and
                            advise the Director on policies,
                            initiatives, and outreach administered
                            by the Office of Urban Agriculture and
                            Innovative Production;
                              (ii) evaluate and review ongoing
                            research and extension activities
                            relating to urban, indoor, and other
                            innovative agricultural practices;
                              (iii) identify new and existing
                            barriers to successful urban, indoor,
                            and other emerging agricultural
                            production practices; and
                              (iv) provide additional assistance
                            and advice to the Director as
                            appropriate.
                      (B) Reports.--Not later than 1 year after the
                    date on which the Committee is established, and
                    every 2 years through [2023] 2031, the
                    Committee shall submit to the Secretary, the
                    Committee on Agriculture of the House of
                    Representatives, and the Committee on
                    Agriculture, Nutrition, and Forestry of the
                    Senate a report describing the recommendations
                    developed under subparagraph (A).
              (6) Personnel matters.--
                      (A) Compensation.--A member of the Committee
                    shall serve without compensation.
                      (B) Travel expenses.--A member of the
                    Committee shall be allowed travel expenses,
                    including per diem in lieu of subsistence, in
                    accordance with section 5703 of title 5, United
                    States Code.
              (7) Termination.--
                      (A) In general.--Subject to subparagraph (B),
                    the Committee shall terminate on [the date that
                    is 5 years after the date on which the members
                    are appointed under paragraph (2)(B)] September
                    30, 2031.
                      (B) Extensions.--Before the date on which the
                    Committee terminates, the Secretary may renew
                    the Committee for 1 or more 2-year periods.
      [(c) Grants.--The Director shall award competitive grants to
    support the development of urban agriculture and innovative
    production to any of the following eligible entities:
              [(1) A nonprofit organization.
              [(2) A unit of local government.
              [(3) A Tribal government.
              [(4) Any school that serves any of grades
            kindergarten through grade 12.]
      (c) Grants and Cooperative Agreements.--
              (1) Grants.--
                      (A) In general.--The Director shall award
                    competitive grants to support the development
                    of urban and innovative agricultural production
                    and technical or financial assistance to
                    producers.
                      (B) Subgrants.--An eligible entity may use
                    funds from a grant under subparagraph (A) to
                    provide subgrants to urban and innovative
                    producers to support the growth of the farm or
                    farm business of the urban and innovative
                    producers.
                      (C) Eligible entities.--An entity eligible to
                    receive a grant under subparagraph (A) is--
                              (i) a nonprofit organization;
                              (ii) a unit of local government;
                              (iii) a Tribal organization;
                              (iv) an agricultural cooperative or
                            other agricultural business entity or a
                            producer network or association; or
                              (v) a school that serves any of
                            grades kindergarten through grade 12.
              (2) Cooperative agreements.--
                      (A) In general.--The Director may enter into
                    cooperative agreements with eligible entities
                    to support the development of urban and
                    innovative agricultural production.
                      (B) Eligible entities.--An entity eligible to
                    enter into cooperative agreements under
                    subparagraph (A) is--
                              (i) a nonprofit organization;
                              (ii) a unit of local government;
                              (iii) a Tribal organization; or
                              (iv) an agricultural cooperative or
                            other agricultural business entity or a
                            producer network or association.
      (d)  [Pilot] Projects.--
              (1) Urban and suburban county committees.--
                      (A) In general.--[Not later than 1 year after
                    the date of enactment of this section, the
                    Secretary shall establish a [pilot] program for
                    not fewer than 5 years that] The Secretary
                    shall continue to implement a program that
                    establishes 10 county committees in accordance
                    with section 8(b)(5)(B)(ii)(II) of the Soil
                    Conservation and Domestic Allotment Act (16
                    U.S.C. 590h(b)(5)(B)(ii)(II)) to operate in
                    counties located in urban or suburban areas
                    with a high concentration of urban or suburban
                    farms.
                      (B) Effect.--Nothing in this paragraph
                    requires or precludes the establishment of a
                    Farm Service Agency office in a county in which
                    a county committee is established under
                    subparagraph (A).
                      (C) Report.--For fiscal year 2019 and each
                    fiscal year thereafter through fiscal year
                    [2023] 2031, 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 a summary of--
                              (i) the status of the [pilot] program
                            under subparagraph (A);
                              (ii) meetings and other activities of
                            the committees established under that
                            subparagraph; and
                              (iii) the types and volume of
                            assistance and services provided to
                            farmers in counties in which county
                            committees are established under that
                            subparagraph.
              (2) Increasing community compost and reducing food
            waste.--
                      (A) In general.--The Secretary, acting
                    through the Director, shall carry out [pilot]
                    projects under which the Secretary shall offer
                    to enter into cooperative agreements with local
                    or municipal governments in not fewer than 10
                    States to develop and test strategies for
                    planning and implementing municipal compost
                    plans and food waste reduction plans and
                    construct at-scale composting, food-to-feed, or
                    anaerobic digestion food waste-to-energy
                    projects.
                      (B) Eligible entities and purposes of [pilot]
                    projects.--Under a cooperative agreement
                    entered into under this paragraph, the
                    Secretary shall provide assistance to
                    municipalities, counties, local governments,
                    Tribal governments, or city planners, as
                    appropriate, to carry out planning and
                    implementing activities that will--
                              (i) generate compost;
                              (ii) increase access to compost for
                            agricultural producers;
                              (iii) reduce reliance on, and limit
                            the use of, fertilizer;
                              (iv) improve soil quality;
                              (v) encourage waste management and
                            permaculture business development;
                              (vi) develop food waste-to-energy
                            operations;
                              [(vi)] (vii) increase rainwater
                            absorption;
                              [(vii)] (viii) reduce municipal food
                            waste; and
                              [(viii)] (ix) divert food waste from
                            landfills.
                      (C) Evaluation and ranking of applications.--
                              (i) Criteria.--Not later than 180
                            days after the date of enactment of
                            this section, the Secretary shall
                            establish criteria for the selection of
                            [pilot] projects under this paragraph.
                              (ii) Consideration.--In selecting,
                            undertaking, or funding [pilot]
                            projects under this paragraph, the
                            Secretary shall consider any commonly
                            known significant impact on existing
                            food waste recovery and disposal by
                            commercial, marketing, or business
                            relationships.
                              (iii) Priority.--In selecting a
                            [pilot] project under this paragraph,
                            the Secretary shall give priority to an
                            application for a [pilot] project
                            that--
                                      (I) anticipates or
                                    demonstrates economic benefits;
                                      (II) incorporates plans to
                                    make compost easily accessible
                                    to agricultural producers,
                                    including community gardeners;
                                      (III) integrates other food
                                    waste strategies, including
                                    food recovery efforts; and
                                      (IV) provides for
                                    collaboration with multiple
                                    partners.
                      (D) Matching requirement.--The recipient of
                    assistance for a [pilot] project under this
                    paragraph shall provide funds, in-kind
                    contributions, or a combination of both from
                    sources other than funds provided through the
                    grant in an amount equal to not less than 25
                    percent of the amount of the grant.
                      (E) Evaluation.--The Secretary shall conduct
                    an evaluation of the [pilot] projects funded
                    under this paragraph to assess different
                    solutions for increasing access to compost and
                    reducing municipal food waste, including an
                    evaluation of--
                              (i) the amount of Federal funds used
                            for each project; and
                              (ii) a measurement of the outcomes of
                            each project.
      (e) Authorization of Appropriations.--There is authorized to
    be appropriated to carry out this section and the amendments
    made by this section $25,000,000 for each of fiscal years 2019
    through [2023] 2031.

    SEC. 224. FOOD LOSS AND WASTE REDUCTION LIAISON.

      (a) Establishment.--The Secretary shall establish a Food Loss
    and Waste Reduction Liaison to coordinate Federal, State,
    local, and nongovernmental programs, and other efforts, to
    measure and reduce the incidence of food loss and waste in
    accordance with this section.
      (b) In General.--The Food Loss and Waste Reduction Liaison
    shall--
              (1) coordinate food loss and waste reduction efforts
            within the Department of Agriculture and with other
            Federal agencies, including the Environmental
            Protection Agency and the Food and Drug Administration;
              (2) support and promote Federal programs to measure
            and reduce the incidence of food loss and waste and
            increase food recovery;
              (3) provide information to, and serve as a resource
            for, entities engaged in food loss and waste reduction
            and food recovery, including information about the
            availability of, and eligibility requirements for,
            participation in Federal, State, local, and
            nongovernmental programs;
              (4) raise awareness of the liability protections
            afforded under the Bill Emerson Good Samaritan Food
            Donation Act (42 U.S.C. 1791) to persons engaged in
            food loss and waste reduction and food recovery; and
              (5) make recommendations with respect to expanding
            innovative food recovery models and reducing the
            incidence of food loss and waste.
      (c) Cooperative Agreements.--For purposes of carrying out the
    duties under subsection (b), the Food Loss and Waste Reduction
    Liaison may enter into contracts or cooperative agreements with
    the research centers of the Research, Education, and Economics
    mission area, institutions of higher education (as defined in
    section 101 of the Higher Education Act of 1965 (20 U.S.C.
    1001)), or nonprofit organizations for--
              (1) the development of educational materials;
              (2) the conduct of workshops and courses; or
              (3) the conduct of research on best practices with
            respect to food loss and waste reduction and food
            recovery.
      (d) Study on Food Waste.--The Secretary shall conduct a
    study, in consultation with the Food Loss and Waste Reduction
    Liaison, to evaluate and determine--
              (1) methods of measuring food waste;
              (2) standards for the volume of food waste;
              (3) factors that contribute to food waste;
              (4) the cost and volume of food loss;
              (5) the effectiveness of existing liability
            protections afforded under the Bill Emerson Good
            Samaritan Food Donation Act (42 U.S.C. 1791); and
              (6) measures to ensure that programs contemplated,
            undertaken, or funded by the Department of Agriculture
            do not disrupt existing food waste recovery and
            disposal efforts by commercial, marketing, or business
            relationships.
      (e) Reports.--
              (1) Initial report.--Not later than 1 year after the
            date of enactment of this section, the Food Loss and
            Waste Liaison 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 conducted under subsection (d).
              (2)  Annual Report.--Not later than 1 year after the
            date of the submission of the report under paragraph
            (1), and annually thereafter, 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
            contains, with respect to the preceding year--
                      (A) an estimate of the quantity of food waste
                    during such year; [and]
                      (B) the results of the food waste reduction
                    and loss prevention activities carried out or
                    led by the Department of Agriculture[.];
                      (C) a general description of each project and
                    activity implemented pursuant to this section;
                      (D) a summary of the cooperative agreements
                    entered into pursuant to subsection (c);
                      (E) a detailed account of how the Secretary
                    avoided, managed, or will manage market
                    disruption; and
                      (F) a summary of coordinated activities with
                    the Administrator of the Environmental
                    Protection Agency and the Commissioner of the
                    Food and Drug Administration, including
                    interagency communication and coordination
                    related to the promotion or exclusion of
                    practices and technologies to limit food waste.

               *       *       *       *       *       *       *

                 Subtitle B--Farm Production and Conservation

               *       *       *       *       *       *       *

    SEC. 226B. OFFICE OF PARTNERSHIPS AND PUBLIC ENGAGEMENT.

      (a) Definitions.--In this section:
              (1) Beginning farmer or rancher.--The term
            ``beginning farmer or rancher'' has the meaning given
            the term in section 343(a) of the Consolidated Farm and
            Rural Development Act (7 U.S.C. 1991(a)).
              (2) Office.--The term ``Office'' means the Office of
            Partnerships and Public Engagement established under
            this section.
              (3) Socially disadvantaged farmer or rancher.--The
            term ``socially disadvantaged farmer or rancher'' has
            the meaning given the term in section 2501(e) of the
            Food, Agriculture, Conservation, and Trade Act of 1990
            (7 U.S.C. 2279(e)).
      (b) Establishment and Purpose.--
              (1) In general.--The Secretary shall establish within
            the executive operations of the Department an office to
            be known as the ``Office of Partnerships and Public
            Engagement''--
                      (A) to improve access to programs of the
                    Department;
                      (B) to improve the viability and
                    profitability of--
                              (i) small farms and ranches;
                              (ii) beginning farmers or ranchers;
                              (iii) socially disadvantaged farmers
                            or ranchers;
                              (iv) limited resource producers; and
                              (v) veteran farmers and ranchers; and
                      (C) to promote youth outreach.
              (2) Director.--The Office shall be headed by a
            Director, to be appointed by the Secretary from among
            the competitive service.
      (c) Duties.--The duties of the Office shall be to ensure
    small farms and ranches, beginning farmers or ranchers, veteran
    farmers and ranchers, and socially disadvantaged farmers or
    ranchers access to, and equitable participation in, programs
    and services of the Department by--
              (1) establishing and monitoring the goals and
            objectives of the Department to increase participation
            in programs of the Department by small, beginning,
            socially disadvantaged, or veteran farmers or ranchers;
              (2) assessing the effectiveness of Department
            outreach programs;
              (3) developing and implementing a plan to coordinate
            outreach activities and services provided by the
            Department;
              (4) providing input to the agencies and offices on
            programmatic and policy decisions;
              (5) measuring outcomes of the programs and activities
            of the Department on small farms and ranches, beginning
            farmers or ranchers, veteran farmers or ranchers, and
            socially disadvantaged farmers or ranchers programs;
              (6) recommending new initiatives and programs to the
            Secretary; and
              (7) carrying out any other related duties that the
            Secretary determines to be appropriate.
      (d) Socially Disadvantaged Farmers Group.--
              (1) Establishment.--The Secretary shall establish
            within the Office the Socially Disadvantaged Farmers
            Group.
              (2) Outreach and assistance.--The Socially
            Disadvantaged Farmers Group--
                      (A) shall carry out section 2501 of the Food,
                    Agriculture, Conservation, and Trade Act of
                    1990 (7 U.S.C. 2279); and
                      (B) in the case of activities described in
                    section 2501(a) of that Act, may conduct such
                    activities through other agencies and offices
                    of the Department.
              (3) Socially disadvantaged farmers and farmworkers.--
            The Socially Disadvantaged Farmers Group shall oversee
            the operations of--
                      (A) the Advisory Committee on Minority
                    Farmers established under section 14009 of the
                    Food, Conservation, and Energy Act of 2008; and
                      (B) the position of Farmworker Coordinator
                    established under subsection (f).
              (4) Other duties.--
                      (A) In general.--The Socially Disadvantaged
                    Farmers Group may carry out other duties to
                    improve access to, and participation in,
                    programs of the Department by socially
                    disadvantaged farmers or ranchers, as
                    determined by the Secretary.
                      (B) Office of outreach and diversity.--The
                    Office of Partnerships and Public Engagement
                    shall carry out the functions and duties of the
                    Office of Outreach and Diversity carried out by
                    the Assistant Secretary for Civil Rights as
                    such functions and duties existed immediately
                    before the date of the enactment of this
                    section.
      (e) Small Farms and Beginning Farmers and Ranchers Group.--
              (1) Establishment.--The Secretary shall establish
            within the Office the Small Farms and Beginning Farmers
            and Ranchers Group.
              (2) Duties.--
                      (A) Oversee offices.--The Small Farms and
                    Beginning Farmers and Ranchers Group shall
                    oversee the operations of the Office of Small
                    Farms Coordination established by Departmental
                    Regulation 9700-1 (August 3, 2006).
                      (B) Beginning farmer and rancher development
                    program.--The Small Farms and Beginning Farmers
                    and Ranchers Group shall consult with the
                    National Institute for Food and Agriculture on
                    the administration of the beginning farmer and
                    rancher development grant program established
                    under subsection (d) of section 2501 of the
                    Food, Agriculture, Conservation, and Trade Act
                    of 1990 (7 U.S.C. 2279).
                      (C) Advisory committee for beginning farmers
                    and ranchers.--The Small Farms and Beginning
                    Farmers and Ranchers Group shall coordinate the
                    activities of the Group with the Advisory
                    Committee for Beginning Farmers and Ranchers
                    established under section 5(b) of the
                    Agricultural Credit Improvement Act of 1992 (7
                    U.S.C. 1621 note; Public Law 102-554).
                      (D) Other duties.--The Small Farms and
                    Beginning Farmers and Ranchers Group may carry
                    out other duties to improve access to, and
                    participation in, programs of the Department by
                    small farms and ranches and beginning farmers
                    or ranchers, as determined by the Secretary.
      (f) Farmworker Coordinator.--
              (1) Establishment.--The Secretary shall establish
            within the Office the position of Farmworker
            Coordinator (referred to in this subsection as the
            ``Coordinator'').
              (2) Duties.--The Secretary shall delegate to the
            Coordinator responsibility for the following:
                      (A) Assisting in administering the program
                    established by section 2281 of the Food,
                    Agriculture, Conservation, and Trade Act of
                    1990 (42 U.S.C. 5177a).
                      (B) Serving as a liaison to community-based
                    nonprofit organizations that represent and have
                    demonstrated experience serving low-income
                    migrant and seasonal farmworkers.
                      (C) Coordinating with the Department, other
                    Federal agencies, and State and local
                    governments to ensure that farmworker needs are
                    assessed and met during declared disasters and
                    other emergencies.
                      (D) Consulting within the Office and with
                    other entities to better integrate farmworker
                    perspectives, concerns, and interests into the
                    ongoing programs of the Department.
                      (E) Consulting with appropriate institutions
                    on research, program improvements, or
                    agricultural education opportunities that
                    assist low-income and migrant seasonal
                    farmworkers.
                      (F) Assisting farmworkers in becoming
                    agricultural producers or landowners.
              (3) Authorization of appropriations.--There are
            authorized to be appropriated to carry out this
            subsection--
                      (A) such sums as are necessary for each of
                    fiscal years 2009 through 2013; and
                      (B) $2,000,000 for each of fiscal years 2014
                    through [2023] 2031.

               *       *       *       *       *       *       *

             Subtitle C--Rural Economic and Community Development

               *       *       *       *       *       *       *

    SEC. 236. RURAL HEALTH LIAISON.

      (a) Authorization.--The Secretary shall establish in the
    Department the position of Rural Health Liaison.
      (b) Duties.--The Rural Health Liaison shall--
              (1) in consultation with the Secretary of Health and
            Human Services, coordinate the role of the Department
            with respect to rural health;
              (2) integrate across the Department the strategic
            planning and activities relating to rural health;
              (3) improve communication relating to rural health
            within the Department and between Federal agencies;
              (4) advocate on behalf of the health care and
            relevant infrastructure needs in rural areas;
              (5) provide to stakeholders, potential grant
            applicants, Federal agencies, State agencies, Indian
            Tribes, private organizations, and academic
            institutions relevant data and information, including
            the eligibility requirements for, and availability and
            outcomes of, Department programs applicable to the
            advancement of rural health;
              (6) maintain communication with public health,
            medical, occupational safety, and telecommunication
            associations, research entities, and other stakeholders
            to ensure that the Department is aware of current and
            upcoming issues relating to rural health;
              (7) consult on programs, pilot projects, research,
            training, and other affairs relating to rural health at
            the Department and other Federal agencies;
              (8) provide expertise on rural health to support the
            activities of the Secretary as Chair of the Council on
            Rural Community Innovation and Economic Development;
            [and]
              (9) provide technical assistance and guidance with
            respect to activities relating to rural health to the
            outreach, extension, and county offices of the
            Department[.]; and
              (10) coordinate with the National Institute of Food
            and Agriculture in implementation of the Farm and Ranch
            Stress Assistance Network provided for in section 7522
            of the Food, Conservation, and Energy Act of 2008 (7
            U.S.C. 5936).
      (c) Report.--The Rural Health Liaison shall submit an annual
    report to the Committee on Agriculture of the House of
    Representatives and the Committee on Agriculture, Nutrition,
    and Forestry of the Senate outlining the activities conducted
    under subsection (b).

              Subtitle D--Food, Nutrition, and Consumer Services

               *       *       *       *       *       *       *

    SEC. 243. HEALTHY FOOD FINANCING INITIATIVE.

      (a) Purpose.--The purpose of this section is to enhance the
    authorities of the Secretary to support efforts to provide
    access to healthy food by establishing an initiative to improve
    access to healthy foods in underserved areas, to create and
    preserve quality jobs, and to revitalize low-income communities
    by providing loans and grants to eligible fresh, healthy food
    retailers and enterprises to overcome the higher costs and
    initial barriers to entry in underserved areas.
      (b) Definitions.--In this section:
              (1) Community development financial institution.--The
            term ``community development financial institution''
            has the meaning given the term in section 103 of the
            Community Development Banking and Financial
            Institutions Act of 1994 (12 U.S.C. 4702).
              (2) Initiative.--The term ``Initiative'' means the
            Healthy Food Financing Initiative established under
            subsection (c)(1).
              (3) National fund manager.--The term ``national fund
            manager'' means a community development financial
            institution that is--
                      (A) in existence on the date of enactment of
                    this section; and
                      (B) certified by the Community Development
                    Financial Institution Fund of the Department of
                    Treasury to manage the Initiative for purposes
                    of--
                              (i) raising private capital;
                              (ii) providing financial and
                            technical assistance to partnerships;
                            and
                              (iii) funding eligible projects to
                            attract fresh, healthy food retailers
                            and enterprises to underserved areas,
                            in accordance with this section.
              (4) Partnership.--The term ``partnership'' means a
            regional, State, or local public-private partnership
            that--
                      (A) is organized to improve access to fresh,
                    healthy foods;
                      (B) provides financial and technical
                    assistance to eligible projects; and
                      (C) meets such other criteria as the
                    Secretary may establish.
              (5) Perishable food.--The term ``perishable food''
            means a staple food that is fresh, refrigerated, or
            frozen.
              (6) Quality job.--The term ``quality job'' means a
            job that provides wages and other benefits comparable
            to, or better than, similar positions in existing
            businesses of similar size in similar local economies.
              (7) Staple food.--
                      (A) In general.--The term ``staple food''
                    means food that is a basic dietary item.
                      (B) Inclusions.--The term ``staple food''
                    includes--
                              (i) bread or cereal;
                              (ii) flour;
                              (iii) fruits;
                              (iv) vegetables;
                              (v) meat; and
                              (vi) dairy products.
      (c) Initiative.--
              (1) Establishment.--The Secretary shall establish an
            initiative to achieve the purpose described in
            subsection (a) in accordance with this subsection.
              (2) Implementation.--
                      (A) In general.--
                              (i) In general.--In carrying out the
                            Initiative, the Secretary shall provide
                            funding to entities with eligible
                            projects, as described in subparagraph
                            (B), subject to the priorities
                            described in subparagraph (C).
                              (ii) Use of funds.--Funds provided to
                            an entity pursuant to clause (i) shall
                            be used--
                                      (I) to create revolving loan
                                    pools of capital or other
                                    products to provide loans to
                                    finance eligible projects or
                                    partnerships;
                                      (II) to provide grants for
                                    eligible projects or
                                    partnerships;
                                      (III) to provide technical
                                    assistance to funded projects
                                    and entities seeking Initiative
                                    funding; and
                                      (IV) to cover administrative
                                    expenses of the national fund
                                    manager in an amount not to
                                    exceed 10 percent of the
                                    Federal funds provided.
                      (B) Eligible projects.--Subject to the
                    approval of the Secretary, the national fund
                    manager shall establish eligibility criteria
                    for projects under the Initiative, which shall
                    include the existence or planned execution of
                    agreements--
                              (i) to expand or preserve the
                            availability of staple foods in
                            underserved areas with moderate- and
                            low-income populations by maintaining
                            or increasing the number of retail
                            outlets that offer an assortment of
                            perishable food and staple food items,
                            as determined by the Secretary, in
                            those areas; and
                              (ii) as applicable, to accept
                            benefits under the supplemental
                            nutrition assistance program
                            established under the Food and
                            Nutrition Act of 2008 (7 U.S.C. 2011 et
                            seq.).
                      (C) Priorities.--In carrying out the
                    Initiative, priority shall be given to projects
                    that--
                              (i) are located in severely
                            distressed low-income communities, as
                            defined by the Community Development
                            Financial Institutions Fund of the
                            Department of Treasury; and
                              (ii) include 1 or more of the
                            following characteristics:
                                      (I) The project will create
                                    or retain quality jobs for low-
                                    income residents in the
                                    community.
                                      (II) The project supports
                                    regional food systems and
                                    locally grown foods, to the
                                    maximum extent practicable.
                                      (III) In areas served by
                                    public transit, the project is
                                    accessible by public transit.
                                      (IV) The project involves
                                    women- or minority-owned
                                    businesses.
                                      (V) The project receives
                                    funding from other sources,
                                    including other Federal
                                    agencies.
                                      (VI) The project otherwise
                                    advances the purpose of this
                                    section, as determined by the
                                    Secretary.
      (d) Authorization of Appropriations.--There is authorized to
    be appropriated to the Secretary to carry out this section
    [$125,000,000] $135,000,000, to remain available until
    expended.

               *       *       *       *       *       *       *

                 Subtitle F--Research, Education, and Economics

    SEC. 251. UNDER SECRETARY OF AGRICULTURE FOR RESEARCH, EDUCATION, AND
                        ECONOMICS.

      (a) Authorization.--The Secretary is authorized to establish
    in the Department the position of Under Secretary of
    Agriculture for Research, Education, and Economics (referred to
    in this section as the ``Under Secretary'').
      (b) Confirmation Required.--The Under Secretary shall be
    appointed by the President, by and with the advice and consent
    of the Senate, from among distinguished scientists with
    specialized training or significant experience in agricultural
    research, education, and economics.
      (c) Chief Scientist.--The Under Secretary shall--
              (1) hold the title of Chief Scientist of the
            Department; [and]
              (2) be responsible for the coordination of the
            research, education, and extension activities of the
            Department[.]; and
              (3) be responsible for the coordination of research
            activities with other Federal agencies.
      (d) Functions of Under Secretary.--
              (1) Principal function.--The Secretary shall delegate
            to the Under Secretary those functions and duties under
            the jurisdiction of the Department that relate to
            research, education, and economics.
              (2) Specific functions and duties.--The Under
            Secretary shall--
                      (A) identify, address, and prioritize current
                    and emerging agricultural research, education,
                    and extension needs (including funding);
                      (B) ensure that agricultural research,
                    education, and extension programs are
                    effectively coordinated and integrated--
                              (i) across disciplines, agencies, and
                            institutions; and
                              (ii) among applicable participants,
                            grantees, and beneficiaries;
                      (C) promote the collaborative use of all
                    agricultural research, education, and extension
                    resources from the local, State, tribal,
                    regional, national, and international levels to
                    address priority needs; and
                      (D) foster communication among agricultural
                    research, education, and extension
                    beneficiaries, including the public, to ensure
                    the delivery of agricultural research,
                    education, and extension knowledge.
              (3) Additional functions.--The Under Secretary shall
            perform such other functions and duties as may be
            required by law or prescribed by the Secretary.
      (e) Office of the Chief Scientist.--
              (1) Establishment.--The Under Secretary shall
            organize within the office of the Under Secretary 6
            Divisions, to be known collectively as the ``Office of
            the Chief Scientist'', which shall coordinate the
            research programs and activities of the Department.
              (2) Division designations.--The Divisions within the
            Office of the Chief Scientist shall be as follows:
                      (A) Renewable energy, natural resources, and
                    environment.
                      (B) Food safety, nutrition, and health.
                      (C) Plant health and production and plant
                    products.
                      (D) Animal health and production and animal
                    products.
                      (E) Agricultural systems and technology.
                      (F) Agricultural economics and rural
                    communities.
              (3) Division chiefs.--
                      (A) Selection.--The Under Secretary shall
                    select a Division Chief for each Division using
                    available personnel authority under title 5,
                    United States Code, including--
                              (i) by term, temporary, or other
                            appointment, 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; and
                                      (III) 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;
                              (ii) by detail, notwithstanding any
                            Act making appropriations for the
                            Department of Agriculture, whether
                            enacted before, on, or after the date
                            of enactment of this paragraph,
                            requiring reimbursement for those
                            details unless the appropriation Act
                            specifically refers to this subsection
                            and specifically includes these
                            details;
                              (iii) by reassignment or transfer
                            from any other civil service position;
                            and
                              (iv) by an assignment under
                            subchapter VI of chapter 33 of title 5,
                            United States Code.
                      (B) Selection guidelines.--To the maximum
                    extent practicable, the Under Secretary shall
                    select Division Chiefs under subparagraph (A)
                    in a manner that--
                              (i) promotes leadership and
                            professional development;
                              (ii) enables personnel to interact
                            with other agencies of the Department;
                            and
                              (iii) maximizes the ability of the
                            Under Secretary to allow for rotations
                            of Department personnel into the
                            position of Division Chief.
                      (C) Term of service.--Notwithstanding title
                    5, United States Code, the maximum length of
                    service for an individual selected as a
                    Division Chief under clauses (i) and (iii) of
                    subparagraph (A) shall be for [not less than 3
                    years] not less than 1 year.
                      (D) Qualifications.--To be eligible for
                    selection as a Division Chief, an individual
                    shall have--
                              (i) conducted exemplary research,
                            education, or extension in the field of
                            agriculture or forestry; and
                              (ii) earned an advanced degree at an
                            institution of higher education (as
                            defined in section 101 of the Higher
                            Education Act of 1965 (20 U.S.C.
                            1001)).
                      (E) Duties of division chiefs.--Except as
                    otherwise provided in this Act, each Division
                    Chief shall--
                              (i) assist the Under Secretary in
                            identifying and addressing emerging
                            agricultural research, education, and
                            extension needs;
                              (ii) assist the Under Secretary in
                            identifying and prioritizing
                            Department-wide agricultural research,
                            education, and extension needs,
                            including funding;
                              (iii) assess the strategic workforce
                            needs of the research, education, and
                            extension functions of the Department,
                            and develop strategic workforce plans
                            to ensure that existing and future
                            workforce needs are met;
                              (iv) communicate with research,
                            education, and extension beneficiaries,
                            including the public, and
                            representatives of the research,
                            education, and extension system,
                            including the National Agricultural
                            Research, Extension, Education, and
                            Economics Advisory Board, to promote
                            the benefits of agricultural research,
                            education, and extension;
                              (v) assist the Under Secretary in
                            preparing and implementing the roadmap
                            for agricultural research, education,
                            and extension, as described in section
                            7504 of the Food, Conservation, and
                            Energy Act of 2008; and
                              (vi) perform such other duties as the
                            Under Secretary may determine.
              (4) Additional leadership duties.--In addition to
            selecting the Division Chiefs under paragraph (3),
            using available personnel authority under title 5,
            United States Code, the Under Secretary shall select
            personnel--
                      (A) to oversee implementation, training, and
                    compliance with the scientific integrity policy
                    of the Department;
                      (B)(i) to integrate strategic program
                    planning and evaluation functions across the
                    programs of the Department; and
                      (ii) to help prepare the annual report to
                    Congress on the relevance and adequacy of
                    programs under the jurisdiction of the Under
                    Secretary;
                      (C) to assist the Chief Scientist in
                    coordinating the international engagements of
                    the Department with the Department of State and
                    other international agencies and offices of the
                    Federal Government; and
                      (D) to oversee other duties as may be
                    required by Federal law or Department policy.
              (5) General administration.--
                      (A) Funding.--
                              (i) Authorization of
                            appropriations.--There is authorized to
                            be appropriated such sums as are
                            necessary to fund the costs of Division
                            personnel.
                              (ii) Additional funding.--In addition
                            to amounts made available under clause
                            (i), notwithstanding any Act making
                            appropriations for the Department of
                            Agriculture, whether enacted before,
                            on, or after the date of enactment of
                            this paragraph unless the appropriation
                            Act specifically refers to this
                            subsection and specifically includes
                            the administration of funds under this
                            section, the Secretary may transfer
                            funds made available to an agency in
                            the research, education, and economics
                            mission area to fund the costs of
                            Division personnel.
                      (B) Limitation.--To the maximum extent
                    practicable--
                              (i) the Under Secretary shall
                            minimize the number of full-time
                            equivalent positions in the Divisions;
                            and
                              (ii) at no time shall the aggregate
                            number of staff for all Divisions
                            exceed 30 full-time equivalent
                            positions.
                      (C) Rotation of personnel.--To the maximum
                    extent practicable, and using the authority
                    described in paragraph (3)(A), the Under
                    Secretary shall rotate personnel among the
                    Divisions, and between the Divisions and
                    agencies of the Department, in a manner that--
                              (i) promotes leadership and
                            professional development;
                              (ii) enables personnel to interact
                            with other agencies of the Department;
                            and
                              (iii) provides strong staff
                            continuity to the Office of the Chief
                            Scientist.
              (6) Organization.--The Under Secretary shall
            integrate leadership functions of the national program
            staff of the research agencies into the Office of the
            Chief Scientist in such form as is required to ensure
            that administrative duplication does not occur.
      (f) National Institute of Food and Agriculture.--
              (1) Definitions.--In this subsection:
                      (A) Advisory board.--The term ``Advisory
                    Board'' means the National Agricultural
                    Research, Extension, Education, and Economics
                    Advisory Board established under section 1408
                    of the National Agricultural Research,
                    Extension, and Teaching Policy Act of 1977 (7
                    U.S.C. 3123).
                      (B) Applied research.--The term ``applied
                    research'' means research that includes
                    expansion of the findings of fundamental
                    research to uncover practical ways in which new
                    knowledge can be advanced to benefit
                    individuals and society.
                      (C) Capacity and infrastructure program.--The
                    term ``capacity and infrastructure program''
                    means each of the following agricultural
                    research, extension, education, and related
                    programs for which the Secretary has
                    administrative or other authority as of the day
                    before the date of enactment of the Food,
                    Conservation, and Energy Act of 2008:
                              (i) Each program providing funding to
                            any of the 1994 Institutions under
                            sections 533, 534(a), and 535 of the
                            Equity in Educational Land-Grant Status
                            Act of 1994 (7 U.S.C. 301 note; Public
                            Law 103-382).
                              (ii) The program established under
                            section 536 of the Equity in
                            Educational Land-Grant Status Act of
                            1994 (7 U.S.C. 301 note; Public Law
                            103-382) providing research grants for
                            1994 Institutions.
                              (iii) Each program established under
                            subsections (b) and (c) of section 3 of
                            the Smith-Lever Act (7 U.S.C. 343).
                              (iv) Each program established under
                            the Hatch Act of 1887 (7 U.S.C. 361a et
                            seq.).
                              (v) Each program established under
                            section 1417(b) of the National
                            Agricultural Research, Extension, and
                            Teaching Policy Act of 1977 (7 U.S.C.
                            3152(b)).
                              (vi) The animal health and disease
                            research program established under
                            subtitle E of the National Agricultural
                            Research, Extension, and Teaching
                            Policy Act of 1977 (7 U.S.C. 3191 et
                            seq.) except for the competitive grant
                            program under section 1433(b).
                              (vii) Each extension program
                            available to 1890 Institutions
                            established under section 1444 of the
                            National Agricultural Research,
                            Extension, and Teaching Policy Act of
                            1977 (7 U.S.C. 3221).
                              (viii) The program established under
                            section 1445 of the National
                            Agricultural Research, Extension, and
                            Teaching Policy Act of 1977 (7 U.S.C.
                            3222).
                              (ix) The program providing grants to
                            upgrade agricultural and food sciences
                            facilities at 1890 Institutions
                            established under section 1447 of the
                            National Agricultural Research,
                            Extension, and Teaching Policy Act of
                            1977 (7 U.S.C. 3222b).
                              (x) The program providing distance
                            education grants for insular areas
                            established under section 1490 of the
                            National Agricultural Research,
                            Extension, and Teaching Policy Act of
                            1977 (7 U.S.C. 3362).
                              (xi) The program providing resident
                            instruction grants for insular areas
                            established under section 1491 of the
                            National Agricultural Research,
                            Extension, and Teaching Policy Act of
                            1977 (7 U.S.C. 3363).
                              (xii) Each research and development
                            and related program established under
                            Public Law 87-788 (commonly known as
                            the ``McIntire-Stennis Cooperative
                            Forestry Act'') (16 U.S.C. 582a et
                            seq.).
                              (xiii) Each program established under
                            the Renewable Resources Extension Act
                            of 1978 (16 U.S.C. 1671 et seq.).
                              (xiv) Each program providing funding
                            to Hispanic-serving agricultural
                            colleges and universities under section
                            1456 of the National Agricultural
                            Research, Extension, and Teaching
                            Policy Act of 1977.
                              (xv) The program providing capacity
                            grants to NLGCA Institutions under
                            section 1473F of the National
                            Agricultural Research, Extension, and
                            Teaching Policy Act of 1977.
                              (xvi) Other programs that are
                            capacity and infrastructure programs,
                            as determined by the Secretary.
                      (D) Competitive program.--The term
                    ``competitive program'' means each of the
                    following agricultural research, extension,
                    education, and related programs for which the
                    Secretary has administrative or other authority
                    as of the day before the date of enactment of
                    the Food, Conservation, and Energy Act of 2008:
                              (i) The Agriculture and Food Research
                            Initiative established under section
                            2(b) of the Competitive, Special, and
                            Facilities Research Grant Act (7 U.S.C.
                            450i(b)).
                              (ii) The program providing
                            competitive grants for risk management
                            education established under section
                            524(a) of the Federal Crop Insurance
                            Act (7 U.S.C. 1524(a)).
                              (iii) The program providing community
                            food project competitive grants
                            established under section 25 of the
                            Food and Nutrition Act of 2008 (7
                            U.S.C. 2034).
                              (iv) The beginning farmer and rancher
                            development grant program established
                            under subsection (d) of section 2501 of
                            the Food, Agriculture, Conservation,
                            and Trade Act of 1990 (7 U.S.C. 2279).
                              (v) The program providing grants
                            under section 1417(j) of the National
                            Agricultural Research, Extension, and
                            Teaching Policy Act of 1977 (7 U.S.C.
                            3152(j)).
                              (vi) The program providing grants for
                            Hispanic-serving institutions
                            established under section 1455 of the
                            National Agricultural Research,
                            Extension, and Teaching Policy Act of
                            1977 (7 U.S.C. 3241).
                              (vii) The program providing
                            competitive grants for international
                            agricultural science and education
                            programs under section 1459A of the
                            National Agricultural Research,
                            Extension, and Teaching Policy Act of
                            1977 (7 U.S.C. 3292b).
                              (viii) The research and extension
                            projects carried out under section 1621
                            of the Food, Agriculture, Conservation,
                            and Trade Act of 1990 (7 U.S.C. 5811).
                              (ix) The organic agriculture research
                            and extension initiative established
                            under section 1672B of the Food,
                            Agriculture, Conservation, and Trade
                            Act of 1990 (7 U.S.C. 5925b).
                              (x) The specialty crop research
                            initiative under section 412 of the
                            Agricultural Research, Extension, and
                            Education Reform Act of 1998.
                              (xi) The research, extension, and
                            education programs authorized by
                            section 407 of the Agricultural
                            Research, Extension, and Education
                            Reform Act of 1998 (7 U.S.C. 7627)
                            relating to the competitiveness,
                            viability and sustainability of small-
                            and medium-sized dairy, livestock, and
                            poultry operations.
                              (xii) Other programs that are
                            competitive programs, as determined by
                            the Secretary.
                      (E) Director.--The term ``Director'' means
                    the Director of the Institute.
                      (F) Fundamental research.--The term
                    ``fundamental research'' means research that--
                              (i) increases knowledge or
                            understanding of the fundamental
                            aspects of phenomena and has the
                            potential for broad application; and
                              (ii) has an effect on agriculture,
                            food, nutrition, or the environment.
                      (G) Institute.--The term ``Institute'' means
                    the National Institute of Food and Agriculture
                    established by paragraph (2)(A).
              (2) Establishment of national institute of food and
            agriculture.--
                      (A) Establishment.--The Secretary shall
                    establish within the Department an agency to be
                    known as the ``National Institute of Food and
                    Agriculture''.
                      (B) Transfer of authorities.--The Secretary
                    shall transfer to the Institute, effective not
                    later than October 1, 2009, the authorities
                    (including all budget authorities, available
                    appropriations, and personnel), duties,
                    obligations, and related legal and
                    administrative functions prescribed by law or
                    otherwise granted to the Secretary, the
                    Department, or any other agency or official of
                    the Department under--
                              (i) the capacity and infrastructure
                            programs;
                              (ii) the competitive programs;
                              (iii) the research, education,
                            economic, cooperative State research
                            programs, cooperative extension and
                            education programs, international
                            programs, and other functions and
                            authorities delegated by the Under
                            Secretary to the Administrator of the
                            Cooperative State Research, Education,
                            and Extension Service pursuant to
                            section 2.66 of title 7, Code of
                            Federal Regulations (or successor
                            regulations); and
                              (iv) any and all other authorities
                            administered by the Administrator of
                            the Cooperative State Research,
                            Education, and Extension Service.
              (3) Director.--
                      (A) In general.--The Institute shall be
                    headed by a Director, who shall be an
                    individual who is--
                              (i) a distinguished scientist; and
                              (ii) appointed by the President.
                      (B) Supervision.--The Director shall report
                    directly to the Secretary, or the designee of
                    the Secretary.
                      (C) Functions of the director.--The Director
                    shall--
                              (i) serve for a 6-year term, subject
                            to reappointment for an additional 6-
                            year term;
                              (ii) periodically report to the
                            Secretary, or the designee of the
                            Secretary, with respect to activities
                            carried out by the Institute; and
                              (iii) consult regularly with the
                            Secretary, or the designee of the
                            Secretary, to ensure, to the maximum
                            extent practicable, that--
                                      (I) research of the Institute
                                    is relevant to agriculture in
                                    the United States and otherwise
                                    serves the national interest;
                                    and
                                      (II) the research of the
                                    Institute supplements and
                                    enhances, and does not
                                    supplant, research conducted or
                                    funded by other Federal
                                    agencies.
                      (D) Compensation.--The Director shall receive
                    basic pay at a rate not to exceed the maximum
                    amount of compensation payable to a member of
                    the Senior Executive Service under subsection
                    (b) of section 5382 of title 5, United States
                    Code, except that the certification requirement
                    in that subsection shall not apply to the
                    compensation of the Director.
                      (E) Authority and responsibilities of
                    director.--Except as otherwise specifically
                    provided in this subsection, the Director
                    shall--
                              (i) exercise all of the authority
                            provided to the Institute by this
                            subsection;
                              (ii) formulate and administer
                            programs in accordance with policies
                            adopted by the Institute, in
                            coordination with the Under Secretary;
                              (iii) establish offices within the
                            Institute;
                              (iv) establish procedures for the
                            provision and administration of grants
                            by the Institute; and
                              (v) consult regularly with the
                            Advisory Board.
              (4) Regulations.--The Institute shall have such
            authority as is necessary to carry out this subsection,
            including the authority to promulgate such regulations
            as the Institute considers to be necessary for
            governance of operations, organization, and personnel.
              (5) Administration.--
                      (A) In general.--The Director shall organize
                    offices and functions within the Institute to
                    administer fundamental and applied research and
                    extension and education programs.
                      (B) Research priorities.--The Director shall
                    ensure the research priorities established by
                    the Under Secretary through the Office of the
                    Chief Scientist are carried out by the offices
                    and functions of the Institute, where
                    applicable.
                      (C) Fundamental and applied research.--The
                    Director shall--
                              (i) determine an appropriate balance
                            between fundamental and applied
                            research programs and functions to
                            ensure future research needs are met;
                            and
                              (ii) designate staff, as appropriate,
                            to assist in carrying out this
                            subparagraph.
                      (D) Competitively funded awards.--The
                    Director shall--
                              (i) promote the use and growth of
                            grants awarded through a competitive
                            process; and
                              (ii) designate staff, as appropriate,
                            to assist in carrying out this
                            subparagraph.
                      (E) Coordination.--The Director shall ensure
                    that the offices and functions established
                    under subparagraph (A) are effectively
                    coordinated for maximum efficiency.
              (6) Funding.--
                      (A) In general.--In addition to funds
                    otherwise appropriated to carry out each
                    program administered by the Institute, there
                    are authorized to be appropriated such sums as
                    are necessary to carry out this subsection for
                    each fiscal year.
                      (B) Allocation.--Funding made available under
                    subparagraph (A) shall be allocated according
                    to recommendations contained in the roadmap
                    described in section 7504 of the Food,
                    Conservation, and Energy Act of 2008.
      (g) Executive Schedule.--
      (h) Interagency Coordination.--
              (1) In general.--The Secretary shall carry out cross-
            cutting and collaborative research and development
            activities focused on the joint advancement of the
            mission requirements and priorities of the Department
            of Agriculture and other Federal agencies.
              (2) Memoranda of understanding.--
                      (A) Department of energy.--
                              (i) In general.--Not later than 1
                            year after the date of enactment of the
                            Farm, Food, and National Security Act
                            of 2026, the Secretary and the
                            Secretary of Energy(referred to in this
                            subparagraph as the ``Secretaries'')
                            shall coordinate the activities under
                            paragraph (1) through the establishment
                            of memoranda of understanding or other
                            appropriate interagency agreements.
                            Such a memorandum or such an agreement
                            shall require the use of a competitive,
                            merit-reviewed process as appropriate.
                            Activities may include components
                            proposed by Federal agencies, National
                            Laboratories, institutions of higher
                            education, nonprofit organizations, and
                            other entities deemed appropriate under
                            the memorandum or agreement.
                              (ii) Coordination.--In carrying out
                            the activities under paragraph (1), the
                            Secretaries may--
                                      (I) conduct collaborative
                                    research in a variety of focus
                                    areas;
                                      (II) develop methods to
                                    accommodate large voluntary
                                    standardized and integrated
                                    data sets on agricultural,
                                    environmental, supply chain,
                                    and economic information with
                                    variable accuracy and scale;
                                      (III) promote collaboration
                                    and open community-based
                                    development between--
                                              (aa) Federal
                                            agencies;
                                              (bb) National
                                            Laboratories;
                                              (cc) institutions of
                                            higher education (as
                                            defined in section 101
                                            of the Higher Education
                                            Act of 1965 (20 U.S.C.
                                            1001));
                                              (dd) nonprofit
                                            institutions;
                                              (ee) industry
                                            partners; and
                                              (ff) other entities
                                            deemed appropriate
                                            under the memorandum or
                                            agreement involved;
                                      (IV) support research
                                    infrastructure, including new
                                    facilities and equipment, and
                                    workforce development as the
                                    Secretaries determine
                                    necessary;
                                      (V) conduct collaborative
                                    research, development, and
                                    demonstration of methods and
                                    technologies; and
                                      (VI) facilitate relations
                                    between public and private
                                    entities to carry on the
                                    activities of this clause upon
                                    the termination of any
                                    agreement established under
                                    this subparagraph.
                              (iii) Agreements.--In carrying out
                            the activities under this subparagraph,
                            the Secretaries are authorized to--
                                      (I) carry out reimbursable
                                    agreements between the
                                    Department of Agriculture, the
                                    Department of Defense, and
                                    other entities in order to
                                    maximize the effectiveness of
                                    research and development; and
                                      (II) collaborate with other
                                    Federal agencies, as
                                    appropriate.
                      (B) National science foundation.--
                              (i) In general.--Not later than 1
                            year after the date of enactment of the
                            Farm, Food, and National Security Act
                            of 2026, the Secretary and the Director
                            of the National Science Foundation
                            (referred to in this subparagraph as
                            the ``Director'') shall coordinate the
                            activities under paragraph (1) through
                            the establishment of memoranda of
                            understanding or other appropriate
                            interagency agreements. Such a
                            memorandum or such an agreement shall
                            require the use of a competitive,
                            merit-reviewed process as appropriate.
                            Activities may include components
                            proposed by Federal agencies,
                            institutions of higher education,
                            nonprofit organizations, and other
                            entities deemed appropriate under the
                            memorandum or agreement.
                              (ii) Coordination.--In carrying out
                            the activities under paragraph (1), the
                            Secretary and the Director may--
                                      (I) conduct collaborative
                                    research in a variety of focus
                                    areas;
                                      (II) promote collaboration
                                    and open, community-based
                                    development between--
                                              (aa) Federal
                                            agencies;
                                              (bb) institutions of
                                            higher education;
                                              (cc) community
                                            colleges (as defined in
                                            section 3167B of the
                                            Energy Science
                                            Education Enhancement
                                            Act (42 U.S.C. 7381c-
                                            3));
                                              (dd) area career and
                                            technical education
                                            schools (as defined in
                                            section 3 of the Carl
                                            D. Perkins Career and
                                            Technical Education Act
                                            of 2006 (20 U.S.C.
                                            2302));
                                              (ee) nonprofit
                                            institutions;
                                              (ff) industry
                                            partners; and
                                              (gg) other entities
                                            deemed appropriate
                                            under the memorandum or
                                            agreement;
                                      (III) support research
                                    infrastructure, including new
                                    facilities, equipment and
                                    broadband deployment, as the
                                    Secretary and Director
                                    determine necessary;
                                      (IV) develop translational
                                    technologies for commercial
                                    utilization;
                                      (V) organize education,
                                    training, and research
                                    initiatives relating to STEM
                                    education and workforce
                                    development, which may
                                    include--
                                              (aa) activities
                                            supported by the
                                            Cooperative Extension
                                            System;
                                              (bb) industrial
                                            partnership programs;
                                              (cc) workshops for
                                            educating kindergarten
                                            through grade 12
                                            teachers on how to
                                            increase agricultural
                                            literacy;
                                              (dd) development of
                                            agricultural-based
                                            science curricula for
                                            kindergarten through
                                            grade 12 students; and
                                              (ee) distribution of
                                            resources for educators
                                            to implement curricula;
                                            and
                                      (VI) facilitate relationships
                                    between public and private
                                    entities to carry on the
                                    activities under this clause
                                    upon the termination of any
                                    agreement established under
                                    this subparagraph.
                              (iii) Agreements.--In carrying out
                            the activities under this subparagraph,
                            the Secretary and the Director are
                            authorized to--
                                      (I) carry out reimbursable
                                    agreements between the
                                    Department of Agriculture, the
                                    National Science Foundation,
                                    and other entities in order to
                                    maximize the effectiveness of
                                    research and development; and
                                      (II) collaborate with other
                                    Federal agencies as
                                    appropriate.
                      (C) Department of defense.--
                              (i) In general.--Not later than 1
                            year after the date of enactment of the
                            Farm, Food, and National Security Act
                            of 2026, the Secretary and the
                            Secretary of Defense (referred to in
                            this subparagraph as the
                            ``Secretaries'') shall coordinate the
                            activities under paragraph (1) through
                            the establishment of memoranda of
                            understanding or other appropriate
                            interagency agreements. Such a
                            memorandum or such an agreement shall
                            require the use of a competitive,
                            merit-reviewed process as appropriate.
                            Activities may include components
                            proposed by Federal agencies, National
                            Laboratories, institutions of higher
                            education, nonprofit organizations,
                            industry, and other entities deemed
                            appropriate under the memorandum or
                            agreement.
                              (ii) Coordination.--In carrying out
                            the activities under paragraph (1), the
                            Secretaries may--
                                      (I) conduct collaborative
                                    research in a variety of focus
                                    areas, including the areas
                                    specified in clause (iv);
                                      (II) develop methods to
                                    accommodate large voluntary
                                    standardized and integrated
                                    data sets on agricultural,
                                    environmental, supply chain,
                                    and economic information with
                                    variable accuracy and scale;
                                      (III) promote collaboration
                                    and secure information sharing
                                    with stakeholders that are
                                    capable of increasing market-
                                    based adoption of technologies
                                    developed pursuant to the
                                    memoranda of understanding or
                                    other appropriate interagency
                                    agreements entered into under
                                    this subparagraph;
                                      (IV) promote collaboration
                                    and open community-based
                                    development between--
                                              (aa) Federal
                                            agencies;
                                              (bb) National
                                            Laboratories;
                                              (cc) institutions of
                                            higher education (as
                                            defined in section 101
                                            of the Higher Education
                                            Act of 1965 (20 U.S.C.
                                            1001));
                                              (dd) nonprofit
                                            institutions;
                                              (ee) industry
                                            partners; and
                                              (ff) other entities
                                            deemed appropriate
                                            under the memorandum or
                                            agreement involved;
                                      (V) support research
                                    infrastructure, including new
                                    facilities and equipment, and
                                    workforce development as the
                                    Secretaries determine
                                    necessary;
                                      (VI) conduct collaborative
                                    research, development, and
                                    demonstration of methods and
                                    technologies; and
                                      (VII) facilitate relations
                                    between public and private
                                    entities to carry on the
                                    activities of this clause upon
                                    the termination of any
                                    agreement established under
                                    this subparagraph.
                              (iii) Agreements.--In carrying out
                            the activities under this subparagraph,
                            the Secretaries are authorized to--
                                      (I) carry out reimbursable
                                    agreements between the
                                    Department of Agriculture, the
                                    Department of Defense, and
                                    other entities in order to
                                    maximize the effectiveness of
                                    research and development; and
                                      (II) collaborate with other
                                    Federal agencies, as
                                    appropriate.
                              (iv) Focus areas described.--The
                            focus areas described in this clause
                            are the following:
                                      (I) Management strategies for
                                    water, energy, soil, forests,
                                    and food to reduce scarcity
                                    risks to civilian and military
                                    operations.
                                      (II) Innovations applicable
                                    to defense objectives and
                                    beneficial to rural
                                    agricultural economies,
                                    including--
                                              (aa) precision
                                            agriculture
                                            technologies;
                                              (bb) drones;
                                              (cc) remote sensing;
                                            and
                                              (dd) positioning,
                                            navigation, and timing
                                            capabilities.
                                      (III) Mitigation of the
                                    impacts of chemicals,
                                    specifically perfluoroalkyl and
                                    polyfluoroalkyl substances
                                    (commonly referred to as PFAS),
                                    released through activities
                                    carried out by the Department
                                    of Defense, to farmland
                                    contiguous to military bases.
                      (D) Other federal agencies.--In addition to
                    the memoranda of understanding with Federal
                    agencies described in subparagraphs (A) and
                    (B), the Secretary shall, as appropriate, enter
                    into memoranda of understanding with the heads
                    of other Federal agencies to coordinate the
                    activities under paragraph (1).
              (3) Report.--Not later than two years after the date
            of enactment of the Farm, Food, and National Security
            Act of 2026, the Secretary shall submit to the
            appropriate congressional committees a report
            detailing--
                      (A) interagency coordination between each
                    Federal agency involved in the research and
                    development activities carried out under this
                    section;
                      (B) potential opportunities to expand the
                    technical capabilities of each Federal agency
                    involved in the research and development
                    activities carried out under this section;
                      (C) collaborative research achievements;
                      (D) areas of future mutually beneficial
                    successes;
                      (E) continuation of coordination activities
                    between each Federal agency involved in the
                    research and development activities carried out
                    under this section;
                      (F) potential opportunities for additional
                    memoranda of understanding with other Federal
                    agencies; and
                      (G) any additional information as the
                    Secretary deems appropriate.
              (4) Research security.--The activities authorized
            under this section shall be applied in a manner
            consistent with subtitle D of title VI of the Research
            and Development, Competition, and Innovation Act
            (enacted as division B of the CHIPS Act of 2022 (Public
            Law 117-167; 42 U.S.C. 19231 et seq.)).

               *       *       *       *       *       *       *

                     Subtitle H--National Appeals Division

               *       *       *       *       *       *       *

    SEC. 277. DIVISION HEARINGS.

      (a) General Powers of Director and Hearing Officers.--
              (1) Access to case record.--The Director and hearing
            officer shall have access to the case record of any
            adverse decision appealed to the Division for a
            hearing.
              (2) Administrative procedures.--The Director and
            hearing officer shall have the authority to require the
            attendance of witnesses, and the production of
            evidence, by subpoena and to administer oaths and
            affirmations. Except to the extent required for the
            disposition of ex parte matters as authorized by law--
                      (A) an interested person outside the Division
                    shall not make or knowingly cause to be made to
                    the Director or a hearing officer who is or may
                    reasonably be expected to be involved in the
                    evidentiary hearing or review of an adverse
                    decision, an ex parte communication (as defined
                    in section 551(14) of title 5, United States
                    Code) relevant to the merits of the proceeding;
                      (B) the Director and such hearing officer
                    shall not make or knowingly cause to be made to
                    any interested person outside the Division an
                    ex parte communication relevant to the merits
                    of the proceeding.
      (b) Time for Hearing.--Upon a timely request for a hearing
    under section 276(b), an appellant shall have the right to have
    a hearing by the Division on the adverse decision within 45
    days after the date of the receipt of the request for the
    hearing.
      (c) Location and Elements of Hearing.--
              (1) Location.--A hearing on an adverse decision shall
            be held in the State of residence of the appellant or
            at a location that is otherwise convenient to the
            appellant and the Division.
              (2) Evidentiary hearing.--The evidentiary hearing
            before a hearing officer shall be in person, unless the
            appellant agrees to a hearing by telephone or by a
            review of the case record. The hearing officer shall
            not be bound by previous findings of fact by the agency
            in making a determination.
              (3) Information at hearing.--The hearing officer
            shall consider information presented at the hearing
            without regard to whether the evidence was known to the
            agency officer, employee, or committee making the
            adverse decision at the time the adverse decision was
            made. The hearing officer shall leave the record open
            after the hearing for a reasonable period of time to
            allow the submission of information by the appellant or
            the agency after the hearing to the extent necessary to
            respond to new facts, information, arguments, or
            evidence presented or raised by the agency or
            appellant.
              [(4) Burden of proof.--The appellant shall bear the
            burden of proving that the adverse decision of the
            agency was erroneous.]
              (4) Burden of proof.--The agency shall bear the
            burden of proving by substantial evidence that the
            adverse decision of the agency was valid.
      (d) Determination Notice.--The hearing officer shall issue a
    notice of the determination on the appeal not later than 30
    days after a hearing or after receipt of the request of the
    appellant to waive a hearing, except that the Director may
    establish an earlier or later deadline. If the determination is
    not appealed to the Director for review under section 278, the
    notice provided by the hearing officer shall be considered to
    be a notice of an administratively final determination.
      (e) Effective Date.--The final determination shall be
    effective as of the date of filing of an application, the date
    of the transaction or event in question, or the date of the
    original adverse decision, whichever is applicable.

               *       *       *       *       *       *       *

              Subtitle K--Miscellaneous Reorganization Provisions

               *       *       *       *       *       *       *

    SEC. 296. TERMINATION OF AUTHORITY.

      (a) In General.--Subject to subsection (b), the authority
    delegated to the Secretary by this title to reorganize the
    Department shall terminate on the date that is 2 years after
    the date of enactment of this Act.
      (b) Functions.--Subsection (a) shall not affect:
              (1) The authority of the Secretary to continue to
            carry out a function that the Secretary performs on the
            date that is 2 years after the date of enactment of
            this Act.
              (2) The authority delegated to the Secretary under
            Reorganization Plan No. 2 of 1953 (5 U.S.C. App.; 7
            U.S.C. 2201 note).
              (3) The authority of an agency, office, officer, or
            employee of the Department to continue to perform all
            functions delegated or assigned to the entity or person
            as of that termination date.
              (4) The authority of the Secretary to establish in
            the Department the position of Under Secretary of
            Agriculture for Marketing and Regulatory Programs under
            section 285.
              (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.
              (6) The authority of the Secretary to establish in
            the Department, under section 251--
                      (A) the position of Under Secretary of
                    Agriculture for Research, Education, and
                    Economics;
                      (B) the Office of the Chief Scientist; and
                      (C) the National Institute of Food and
                    Agriculture.
              (7) The authority of the Secretary to establish in
            the Department the Office of Advocacy and Outreach in
            accordance with section 226B.
              (8) The authority of the Secretary to carry out
            amendments made to this title by the Agricultural Act
            of 2014.
              (9) The authority of the Secretary to carry out the
            amendments made to this title by section 772 of the
            Agriculture, Rural Development, Food and Drug
            Administration, and Related Agencies Appropriations
            Act, 2018.
              (10) The authority of the Secretary to carry out the
            amendments made to this title by the Agriculture
            Improvement Act of 2018.
              (11) The authority of the Secretary to carry out the
            amendments made to this title by the Farm, Food, and
            National Security Act of 2026.

               *       *       *       *       *       *       *

                                  ----------

                  NATIONAL NUTRITION MONITORING AND RELATED
                             RESEARCH ACT OF 1990

               *       *       *       *       *       *       *

                          TITLE III--DIETARY GUIDANCE

    SEC. 301. ESTABLISHMENT OF DIETARY GUIDELINES.

      (a) Report.--(1) In General.--[At least every five years]
    Beginning with the 2030 report and at least every 10 years
    thereafter, the Secretaries shall publish a report entitled
    ``Dietary Guidelines for Americans''. Each such report shall
    contain nutritional and dietary information and guidelines for
    the general public, and shall be promoted by each Federal
    agency in carrying out any Federal food, nutrition, or health
    program. Rulemaking requirements under section 553 of title 5,
    United States Code, shall apply to the development of each
    report under this paragraph.
      (2) Basis of Guidelines.--The information and guidelines
    contained in each report required under paragraph (1) [shall be
    based on the preponderance of the scientific and medical
    knowledge which is current at the time the report is prepared.]
    shall--
              (A) be based on significant scientific agreement that
            is determined by evidence-based review (as defined in
            paragraph (8)(A));
              (B) be current at the time the report is prepared;
              (C) be derived from questions generated under
            paragraph (5)(E);
              (D) address high-priority areas of concern to advance
            health outcomes;
              (E) be designed to achieve nutritional adequacy and
            promote health, as specified by the Food and Nutrition
            Board of the National Academies of Sciences,
            Engineering and Medicine, from the consumption of food,
            including nutrients and bioactive food components
            occurring naturally and in fortified foods;
              (F) include nutritional and dietary information
            relevant to individuals with nutrition-related common
            chronic diseases, as defined by the Centers for Disease
            Control and Prevention; and
              (G) include recommendations that are affordable,
            available, and accessible for the general population.
              (3) Frequency.--The Secretaries may publish the
            report required under paragraph (1) more frequently
            than required under that paragraph if the Secretaries
            determine that more frequent publication is necessary
            to promote health, based on the updated dietary
            reference intake values specified by--
                      (A) the Food and Nutrition Board of the
                    National Academies of Sciences, Engineering and
                    Medicine; and
                      (B) other relevant scientific advancements
                    based on continuous monitoring of the totality
                    of publicly available scientific evidence.
              (4) Notification of update.--
                      (A) In general.--Not later than 90 days
                    before the Secretaries plan to update a report
                    under paragraph (1), the Secretaries shall
                    submit notification of that plan, in writing,
                    to the Committees on Agriculture, Nutrition,
                    and Forestry and Health, Education, Labor, and
                    Pensions of the Senate and the Committees on
                    Agriculture and Energy and Commerce of the
                    House of Representatives.
                      (B) Justification.--The notification under
                    subparagraph (A) shall include a justification
                    for updating the report.
              (5) Independent advisory board.--
                      (A) In general.--Not later than 90 days after
                    the Secretaries submit a notification under
                    paragraph (4)(A), the Secretaries shall
                    establish an Independent Advisory Board
                    (referred to in this paragraph as the
                    ``Board'').
                      (B) Members.--The Board shall be comprised of
                    at least 4 members and not more than 8 members,
                    of which--
                              (i) 4 shall be appointed by the
                            Secretaries, 2 of whom shall not be
                            Federal employees; and
                              (ii) 1 may be appointed by each of
                            the highest-ranking Member of Congress
                            on each Committee described in
                            paragraph (4)(A) of the opposite
                            political party of the President of the
                            United States at the time of the
                            appointment.
                      (C) Expertise.--Each member appointed to the
                    Board shall have expertise in nutrition science
                    or food science, including academic and applied
                    experience.
                      (D) Meetings.--
                              (i) In general.--The first meeting of
                            the Board--
                                      (I) may only take place on or
                                    after the date that 4 members
                                    are appointed to the Board
                                    under subparagraph (B); and
                                      (II) shall take place on or
                                    after the date that is 90 days
                                    after the Secretaries submit a
                                    notification under paragraph
                                    (4)(A).
                              (ii) Quorum.--A majority of the
                            members shall constitute a quorum for
                            the transaction of the business of the
                            Board.
                      (E) Duties.--Not later than 1 year after the
                    establishment of the Board, the Board shall
                    submit to the Secretaries and the Committees
                    described in paragraph (4)(A) a list of
                    scientific questions relating to the report for
                    purposes of paragraph (2)(C).
                      (F) Termination.--The authority of the Board
                    shall terminate, and the Board shall disband,
                    immediately after carrying out subparagraph
                    (E).
              (6) Exclusion.--The information and guidelines
            contained in each report required under paragraph (1)
            shall not be based on or include topics that are not
            relevant to dietary guidance, as determined by the
            Secretaries, in consultation with the Independent
            Advisory Board established under paragraph (5),
            including taxation, social welfare policies, purchases
            under Federal feeding programs, food and agricultural
            production practices, food labeling, socioeconomic
            status, race, religion, ethnicity, culture, or
            regulations relating to nutrition.
      [(3)] (7) Pregnant women and young children.--Not later than
    the 2020 report and in each report thereafter, the Secretaries
    shall include national nutritional and dietary information and
    guidelines for pregnant women and children from birth until the
    age of 2.
              (8) Evidence based review.--
                      (A) Definition.--In this paragraph, the term
                    ``evidence-based review'' means a process under
                    which--
                              (i) the totality of the scientific
                            evidence relevant to a question of
                            interest is collected, analyzed, and
                            evaluated;
                              (ii) scientific studies, conclusions,
                            and recommendations are rated, adhering
                            strictly to standardized, generally
                            accepted evidence-based review methods;
                            and
                              (iii) external peer review is
                            conducted by nongovernment experts with
                            recognized expertise in quality of
                            evidence evaluation.
                      (B) Strength of evidence.--Each guideline
                    contained in a report published under paragraph
                    (1) shall be assigned a rating by the
                    Secretaries for the strength of evidence used,
                    including to the extent by which the guideline
                    will improve the Healthy Eating Index.
              (9) Transparency.--
                      (A) Disclosure.--Any individual appointed to
                    the Dietary Guidelines Advisory Committee or an
                    Independent Advisory Board established under
                    paragraph (5) shall--
                              (i) be appointed as a special
                            government employee;
                              (ii) comply with financial disclosure
                            requirements applicable to such a
                            special government employee under
                            subpart I of part 2634 of title 5, Code
                            of Federal Regulations (or successor
                            regulations), including the requirement
                            to file the Office of Government Ethics
                            Form 450 (or successor Form); and
                              (iii) prior to such an appointment,
                            provide a report to the Secretaries
                            regarding, for the 10-year period
                            preceding such report, any research
                            funding or professional affiliation
                            relating to a report under paragraph
                            (1).
                      (B) Publication.--Notwithstanding any other
                    provision of law, not later than 30 days after
                    the date on which a Dietary Guidelines Advisory
                    Committee or an Independent Advisory Board is
                    established, the Secretaries shall make
                    publicly available--
                              (i) a summary of the financial
                            disclosures reported by members of such
                            Committee or Board;
                              (ii) the research funding and
                            professional affiliations reported by
                            such members under subparagraph
                            (A)(iii), categorized by the name of
                            the individual; and
                              (iii) a detailed plan for managing
                            any disclosed conflicts of interest,
                            including financial or ethical
                            conflicts of interest, preferences,
                            values, and beliefs.
      (b) Approval by Secretaries.--(1) Review.--Any Federal agency
    that proposes to issue any dietary guidance for the general
    population or identified population subgroups shall submit the
    text of such guidance to the Secretaries for a sixty-day review
    period.
      (2) Basis of Review.--(A) In General.--During the sixty-day
    review period established in paragraph (1), the Secretaries
    shall review and approve or disapprove such guidance to assure
    that the guidance either is consistent with the ``Dietary
    Guidelines for Americans'' or that the guidance is based on
    medical or new scientific knowledge which is determined to be
    valid by the Secretaries. If after such sixty-day period
    neither Secretary notifies the proposing agency that such
    guidance has been disapproved, then such guidance may be issued
    by the agency. If both Secretaries disapprove of such guidance,
    it shall be returned to the agency. If either Secretary finds
    that such guidance is inconsistent with the ``Dietary
    Guidelines for Americans'' and so notifies the proposing
    agency, such agency shall follow the procedures set forth in
    this subsection before disseminating such proposal to the
    public in final form. If after such sixty-day period, either
    Secretary disapproves such guidance as inconsistent with the
    ``Dietary Guidelines for Americans'' the proposing agency
    shall--
                      (i) publish a notice in the Federal Register
                    of the availability of the full text of the
                    proposal and the preamble of such proposal
                    which shall explain the basis and purpose for
                    the proposed dietary guidance;
                      (ii) provide in such notice for a public
                    comment period of thirty days; and
                      (iii) make available for public inspection
                    and copying during normal business hours any
                    comment received by the agency during such
                    comment period.
              (B) Review of Comments.--After review of comments
            received during the comment period either Secretary may
            approve for dissemination by the proposing agency a
            final version of such dietary guidance along with an
            explanation of the basis and purpose for the final
            guidance which addresses significant and substantive
            comments as determined by the proposing agency.
              (C) Announcement.--Any such final dietary guidance to
            be disseminated under subparagraph (B) shall be
            announced in a notice published in the Federal
            Register, before public dissemination along with an
            address where copies may be obtained.
              (D) Notification of disapproval.--If after the
            thirty-day period for comment as provided under
            subparagraph (A)(ii), both Secretaries disapprove a
            proposed dietary guidance, the Secretaries shall notify
            the Federal agency submitting such guidance of such
            disapproval, and such guidance may not be issued,
            except as provided in subparagraph (E).
              (E) Review of disapproval.--If a proposed dietary
            guidance is disapproved by both Secretaries under
            subparagraph (D), the Federal agency proposing such
            guidance may, within fifteen days after receiving
            notification of such disapproval under subparagraph
            (D), request the Secretaries to review such
            disapproval. Within fifteen days after receiving a
            request for such a review, the Secretaries shall
            conduct such review. If, pursuant to such review,
            either Secretary approves such proposed dietary
            guidance, such guidance may be issued by the Federal
            agency.
      (3) Limitation on Definition of Guidance.--For purposes of
    this subsection, the term ``dietary guidance for the general
    population''does not include any rule or regulation issued by a
    Federal agency.
      (4) Definition of Identified Population Subgroups.--For
    purposes of this subsection, the term ``identified population
    subgroups'' shall include, but not be limited to, groups based
    on factors such as age, sex, or race.
      (c) Existing Authority Not Affected.--This section does not
    place any limitations on--
              (1) the conduct or support of any scientific or
            medical research by any Federal agency;
              (2) the presentation of any scientific or medical
            findings or the exchange or review of scientific or
            medical information by any Federal agency; or
              (3) the authority of the Food and Drug Administration
            under the provisions of the Federal Food, Drug, and
            Cosmetic Act (21 U.S.C. 321 et seq.).

               *       *       *       *       *       *       *

                                  ----------

                  CONSOLIDATED FARM AND RURAL DEVELOPMENT ACT

                         TITLE III--AGRICULTURAL CREDIT

      Sec. 301. (a) This title may be cited as the ``Consolidated
    Farm and Rural Development Act''.
      (b) The Congress hereby finds that the statutory authority of
    the Secretary of Agriculture, hereinafter referred to in this
    title as the ``Secretary,'' for making and insuring loans to
    farmers and ranchers should be revised and consolidated to
    provide for more effective credit services to farmers.

                         Subtitle A--Real Estate Loans

    SEC. 302. PERSONS ELIGIBLE FOR REAL ESTATE LOANS.

      (a) In General.--
              (1) Eligibility requirements.--The Secretary may make
            and insure loans under this subtitle to farmers and
            ranchers in the United States, and to farm cooperatives
            and private domestic corporations, partnerships, joint
            operations, trusts, limited liability companies, and
            such other legal entities as the Secretary considers
            appropriate, that are controlled by farmers and
            ranchers and engaged primarily and directly in farming
            or ranching in the United States, subject to the
            conditions specified in this section. To be eligible
            for such loans, applicants who are individuals, or, in
            the case of cooperatives, corporations, partnerships,
            joint operations, trusts, limited liability companies,
            and such other legal entities, individuals holding [a
            majority] at least a 50 percent interest in such
            entity, must (A) be citizens of the United States, (B)
            for direct loans only, have either training or farming
            experience that the Secretary determines is sufficient
            to assure reasonable prospects of success in the
            proposed farming operations, taking into consideration
            all farming experience of the applicant, without regard
            to any lapse between farming experiences, (C) be or
            will become owner-operators of not larger than family
            farms (or in the case of cooperatives, corporations,
            partnerships, joint operations, trusts, limited
            liability companies, and such other legal entities in
            which [a majority]at least a 50 percent interest is
            held by individuals who are related by blood or
            marriage, as defined by the Secretary, such individuals
            must be or will become either owners or operators of
            not larger than a family farm and at least one such
            individual must be or will become an operator of not
            larger than a family farm or, in the case of holders of
            the entire interest who are related by blood or
            marriage and all of whom are or will become farm
            operators, the ownership interest of each such holder
            separately constitutes not larger than a family farm,
            even if their interests collectively constitute larger
            than a family farm, as defined by the Secretary), and
            (D) be unable to obtain sufficient credit elsewhere to
            finance their actual needs at reasonable rates and
            terms, taking into consideration prevailing private and
            cooperative rates and terms in the community in or near
            which the applicant resides for loans for similar
            purposes and periods of time. In addition to the
            foregoing requirements of this section, in the case of
            corporations, partnerships, joint operations, trusts,
            limited liability companies, and such other legal
            entities, the family farm requirement of subparagraph
            (C) of the preceding sentence shall apply as well to
            the farm or farms in which the entity has an ownership
            and operator interest and the requirement of
            subparagraph (D) of the preceding sentence shall apply
            as well to the entity in the case of cooperatives,
            corporations, partnerships, joint operations, trusts,
            limited liability companies, and such other legal
            entities.
              (2) Special rules.--
                      [(A) Eligibility of certain operating-only
                    entities.--An entity that is or will become
                    only the operator of a family farm shall be
                    considered to meet the owner-operator
                    requirements of paragraph (1) if the
                    individuals that are the owners of the family
                    farm own more than 50 percent (or such other
                    percentage as the Secretary determines is
                    appropriate) of the entity.
                      [(B) Eligibility of certain embedded
                    entities.--An entity that is an owner-operator
                    described in paragraph (1), or an operator
                    described in subparagraph (A) of this paragraph
                    that is owned, in whole or in part, by other
                    entities, shall be considered to meet the
                    direct ownership requirement imposed under
                    paragraph (1) if at least 75 percent of the
                    ownership interests of each embedded entity of
                    the entity is owned directly or indirectly by
                    the individuals that own the family farm.]
                      (A) Eligibility of qualified operators.--
                    Qualified operators, as defined by the
                    Secretary, shall be considered to meet the
                    operator requirement of paragraph (1).
                      (B) Eligibility of certain operating-only
                    entities.--An applicant that is or will become
                    only the operator of farm real estate acquired,
                    improved, or supported with funds under this
                    subtitle shall be considered to meet the owner-
                    operator requirements of paragraph (1) if 1 or
                    more of the individuals who is an owner of the
                    farm real estate owns at least 50 percent (or
                    such other percentage as the Secretary
                    determines is appropriate) of the applicant.
                      (C) Eligibility of certain embedded
                    entities.--An entity that is an owner-operator
                    described in paragraph (1), or an operator
                    described in subparagraph (B) of this paragraph
                    that is owned, in whole or in part, by 1 or
                    more other entities, shall be considered to
                    meet the direct ownership requirement imposed
                    under paragraph (1) if at least 75 percent of
                    the total ownership interests of the embedded
                    entity, or of the other entities, is owned,
                    directly or indirectly, by qualified operators
                    of the farm acquired, improved, or supported
                    with funds under this subtitle.
      (b) Direct Loans.--
              (1) In general.--Subject to paragraph (3), the
            Secretary may make a direct loan under this subtitle
            only to a farmer or rancher who has participated in the
            business operations of a farm or ranch for not less
            than [3 years] 2 years or has other acceptable
            experience for a period of time, as determined by the
            Secretary, and--
                      (A) is a qualified beginning farmer or
                    rancher;
                      (B) has not received a previous direct farm
                    ownership loan made under this subtitle; or
                      (C) has not received a direct farm ownership
                    loan under this subtitle more than 10 years
                    before the date the new loan would be made.
              (2) Youth loans.--The operation of an enterprise by a
            youth under section 311(b) shall not be considered the
            operation of a farm or ranch for purposes of paragraph
            (1).
              (3) Transition rule.--
                      (A) In general.--Subject to subparagraphs (B)
                    and (C), the Secretary may make a direct loan
                    under this subtitle to a farmer or rancher who
                    has a direct loan outstanding under this
                    subtitle on the date of enactment of this
                    paragraph.
                      (B) Less than 5 years.--If, as of the date of
                    enactment of this paragraph, a farmer or
                    rancher has had a direct loan outstanding under
                    this subtitle for less than 5 years, the
                    Secretary shall not make a loan to the farmer
                    or rancher under subparagraph (A) after the
                    date that is 10 years after the date of
                    enactment of this paragraph.
                      (C)  5 years or more.--If, as of the date of
                    enactment of this paragraph, a farmer or
                    rancher has had a direct loan outstanding under
                    this subtitle for 5 years or more, the
                    Secretary shall not make a loan to the farmer
                    or rancher under subparagraph (A) after the
                    date that is 5 years after the date of
                    enactment of this paragraph.
              (D) Notice.--Beginning with fiscal year 2000 not
            later than 12 months before a borrower will become
            ineligible for direct loans under this subtitle by
            reason of this paragraph, the Secretary shall notify
            the borrower of such impending ineligibility.
              (4) Waiver authority.--In the case of a qualified
            beginning farmer or rancher, the Secretary may--
                      (A) reduce the [3-year] 2-year requirement in
                    paragraph (1) to [1 or 2 years] 1 year, if the
                    farmer or rancher has--
                              (i) not less than 16 credit hours of
                            post-secondary education in a field
                            related to agriculture;
                              (ii) successfully completed a farm
                            management curriculum offered by a
                            cooperative extension service, a
                            community college, an adult vocational
                            agriculture program, a nonprofit
                            organization, or a land-grant college
                            or university;
                              (iii) at least 1 year of experience
                            as hired farm labor with substantial
                            management or operational
                            responsibilities;
                              (iv) successfully completed a farm
                            mentorship, apprenticeship, or
                            internship program with an emphasis on
                            management requirements and day-to-day
                            farm management decisions;
                              (v) significant business management
                            experience;
                              (vi) been honorably discharged from
                            the armed forces of the United States;
                              (vii) successfully repaid a youth
                            loan made under section 311(b); [or]
                              (viii) an established relationship
                            with an individual who has experience
                            in farming or ranching, or is a retired
                            farmer or rancher, and is participating
                            as a counselor in a Service Corps of
                            Retired Executives program authorized
                            under section 8(b)(1)(B) of the Small
                            Business Act (15 U.S.C. 637(b)(1)(B)),
                            or with a local farm or ranch operator
                            or organization, approved by the
                            Secretary, that is committed to
                            mentoring the farmer or rancher; or
                              (ix) met any other criteria
                            established by the Secretary; or
                      (B) waive the [3-year] 2- year requirement in
                    paragraph (1) if the farmer or rancher meets
                    the requirements of clauses (iii) and (viii) of
                    subparagraph (A).

    SEC. 303. PURPOSES OF LOANS.

      (a) Allowed Purposes.--
              (1) Direct loans.--A farmer or rancher may use a
            direct loan made under this subtitle only for--
                      (A) acquiring or enlarging a farm or ranch;
                      (B) making capital improvements to a farm or
                    ranch;
                      (C) paying loan closing costs related to
                    acquiring, enlarging, or improving a farm or
                    ranch;
                      (D) paying for activities to promote soil and
                    water conservation and protection [described in
                    section 304] on a farm or ranch; or
                      (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.
              (2) Guaranteed loans.--A farmer or rancher may use a
            loan guaranteed under this subtitle only for--
                      (A) acquiring or enlarging a farm or ranch;
                      (B) making capital improvements to a farm or
                    ranch;
                      (C) paying loan closing costs related to
                    acquiring, enlarging, or improving a farm or
                    ranch;
                      (D) paying for activities to promote soil and
                    water conservation and protection [described in
                    section 304] on a farm or ranch; or
                      (E) refinancing indebtedness.
      (b) Preferences.--In making or guaranteeing a loan under this
    subtitle for purchase of a farm or ranch, the Secretary shall
    give preference to a person who--
              (1) has a dependent family;
              (2) to the extent practicable, is able to make an
            initial down payment on the farm or ranch; or
              (3) is an owner of livestock or farm or ranch
            equipment that is necessary to successfully carry out
            farming or ranching operations.
      (c) Hazard Insurance Requirement.--
              (1) In general.--After the Secretary makes the
            determination required by paragraph (2), the Secretary
            may not make a loan to a farmer or rancher under this
            subtitle unless the farmer or rancher has, or agrees to
            obtain, hazard insurance on any real property to be
            acquired or improved with the loan.
              (2) Determination.--Not later than 180 days after the
            date of enactment of this subsection, the Secretary
            shall determine the appropriate level of insurance to
            be required under paragraph (1).
      (d) Refinancing of Guaranteed Loans Into Direct Loans.--
    Within 1 year after the date of the enactment of this
    subsection, the Secretary, acting through the Administrator of
    the Farm Service Agency (referred to in this section as the
    ``Secretary''), shall promulgate regulations allowing certain
    loans guaranteed by the Farm Service Agency to be refinanced
    into direct loans issued by the Farm Service Agency, in
    accordance with this subsection.
              (1) Requirements.--
                      (A) In general.--A guaranteed loan may be
                    refinanced into a direct loan pursuant to this
                    subsection only if the Secretary determines
                    that--
                              (i) the guaranteed loan is distressed
                            due to its status as a nonperforming
                            loan that does not have a positive cash
                            flow at rates and terms available from
                            the lender;
                              (ii) the borrower on the guaranteed
                            loan is in monetary default and subject
                            to liquidation or foreclosure action;
                              (iii) a reasonable chance for the
                            success of the operation financed by
                            the guaranteed loan exists; and
                              (iv) all other criteria established
                            by the Secretary for purposes of this
                            subsection to protect taxpayer funds
                            and the loan programs of the Farm
                            Service Agency have been satisfied.
                      (B) Reasonable chance of success.--For
                    purposes of subparagraph (A)(iii), the
                    Secretary may determine that a reasonable
                    chance for the success of an operation exists
                    if the Secretary determines that--
                              (i) all relevant problems with the
                            operation financed by the guaranteed
                            loan--
                                      (I) have been identified; and
                                      (II) can be corrected; and
                              (ii) on correction of the problems,
                            the operation can achieve, or be
                            returned to, a sound financial basis.
              (2) Loan programs.--In making direct loans pursuant
            to the regulations promulgated under this subsection,
            the Secretary may refinance a loan guaranteed under 1
            program of the Farm Service Agency into a direct loan
            issued under another program of the Farm Service
            Agency, as the Secretary determines to be appropriate
            and in accordance with the laws applicable to the
            program under which the direct loan is issued.
              (3) Refinanced guaranteed loans.--A direct loan
            issued by the Farm Service Agency pursuant to the
            regulations promulgated under subsection (a) of this
            section shall be subject to any otherwise applicable
            limitation on the maximum amount of a direct loan
            issued by the Farm Service Agency, including, if
            applicable, the limitations described in sections 305
            and 313.

    SEC. 304. CONSERVATION LOAN AND LOAN GUARANTEE PROGRAM.

      (a) In General.--The Secretary may make or guarantee
    qualified conservation loans to eligible borrowers under this
    section.
      (b) Definitions.--In this section:
              (1) Qualified conservation loan.--The term
            ``qualified conservation loan'' means a loan, the
            proceeds of which are used to cover the costs to the
            borrower of carrying out a qualified conservation
            project.
              (2) Qualified conservation project.--The term
            ``qualified conservation project'' means conservation
            measures that address provisions of a conservation plan
            of the eligible borrower.
              (3) Conservation plan.--The term ``conservation
            plan'' means a plan, approved by the Secretary, that,
            for a farming or ranching operation, identifies the
            conservation activities that will be addressed with
            loan funds provided under this section, including--
                      (A) the installation of conservation
                    structures to address soil, water, and related
                    resources;
                      (B) the establishment of forest cover for
                    sustained yield timber management, erosion
                    control, or shelter belt purposes;
                      (C) the installation of water conservation
                    measures;
                      (D) the installation of waste management
                    systems;
                      (E) the establishment or improvement of
                    permanent pasture;
                      (F) compliance with section 1212 of the Food
                    Security Act of 1985; and
                      (G) other purposes consistent with the plan,
                    including the adoption of any other emerging or
                    existing conservation practices, techniques, or
                    technologies approved by the Secretary.
      (c) Eligibility.--
              (1) In general.--The Secretary may make or guarantee
            loans to farmers or ranchers in the United States, farm
            cooperatives, private domestic corporations,
            partnerships, joint operations, trusts, limited
            liability companies, or such other legal entities as
            the Secretary considers appropriate that are controlled
            by farmers or ranchers and engaged primarily and
            directly in agricultural production in the United
            States.
              (2) Requirements.--To be eligible for a loan under
            this section, applicants shall meet the requirements in
            subparagraphs (A) and (B) of section 302(a)(1).
      (d) Priority.--In making or guaranteeing loans under this
    section, the Secretary shall give priority to--
              (1) qualified beginning farmers or ranchers and
            socially disadvantaged farmers or ranchers;
              (2) owners or tenants who use the loans to convert to
            sustainable or organic agricultural production systems;
            [and]
              (3) producers who use the loans to build conservation
            structures or establish conservation practices to
            comply with section 1212 of the Food Security Act of
            [1985.] 1985 (16 U.S.C. 3812); and
              (4) producers who use the loans to adopt precision
            agriculture practices or acquire precision agriculture
            technologies, including adoption or acquisition for the
            purpose of participating in the environmental quality
            incentives program under subchapter A of chapter 4 of
            subtitle D of title XII of the Food Security Act of
            1985 (16 U.S.C. 3839aa et seq.).
      (e) Limitations Applicable to Loan Guarantees.--The portion
    of a loan that the Secretary may guarantee under this section
    shall be--
              (1) 80 percent of the principal amount of the loan;
            or
              (2) in the case of a producer that is a qualified
            socially disadvantaged farmer or rancher or a beginning
            farmer or rancher, 90 percent of the principal amount
            of the loan.
      (f) Administrative Provisions.--The Secretary shall ensure,
    to the maximum extent practicable, that loans made or
    guaranteed under this section are distributed across diverse
    geographic regions.
      (g) Credit Eligibility.--The provisions of paragraphs (1) and
    (3) of section 333 shall not apply to loans made or guaranteed
    under this section.
      (h) Authorization of Appropriations.--There is authorized to
    be appropriated to the Secretary to carry out this section
    $150,000,000 for each of fiscal years 2014 through [2023] 2031.

    SEC. 305. LIMITATIONS ON AMOUNT OF FARM OWNERSHIP LOANS.

      (a) In General.--The Secretary shall make or insure no loan
    under sections 302, 303, 304, 310D, and 310E of this title that
    would cause the unpaid indebtedness under such sections of any
    one borrower to exceed the smaller of (1) the value of the farm
    or other security, or (2) in the case of a loan other than a
    loan guaranteed by the Secretary, [$600,000, or, in the case of
    a loan guaranteed by the Secretary, $1,750,000 (increased,
    beginning with fiscal year 2019] $850,000, or, in the case of a
    loan guaranteed by the Secretary, $3,500,000 (increased,
    beginning with fiscal year 2026, by the inflation percentage
    applicable to the fiscal year in which the loan is guaranteed
    and reduced by the amount of any unpaid indebtedness of the
    borrower on loans under subtitle B that are guaranteed by the
    Secretary).
      (b) Determination of Value.--In determining the value of the
    farm, the Secretary shall consider appraisals made by competent
    appraisers under rules established by the Secretary.
      (c) Inflation Percentage.--For purposes of this section, the
    inflation percentage applicable to a fiscal year is the
    percentage (if any) by which--
              (1) the average [of the Prices Paid By Farmers Index
            (as compiled by the National Agricultural Statistics
            Service of the Department of Agriculture) for the 12-
            month period ending on July 31 of the immediately
            preceding fiscal year] of the per acre average United
            States farm real estate value, the per acre average
            United States cropland value, and the per acre average
            United States pasture value for the preceding year (as
            published in the applicable Agricultural Land Values
            report of the National Agricultural Statistics Service
            of the Department of Agriculture), weighted equally;
            exceeds
              (2) the average [of such index (as so defined) for
            the 12-month period that immediately precedes the 12-
            month period described in paragraph (1)] of the per
            acre average United States farm real estate value, the
            per acre average United States cropland value, and the
            per acre average United States pasture value for the
            year immediately preceding the year described in
            paragraph (1) (as so published), weighted equally.
      Sec. 306. (a)(1) The Secretary is also authorized to make or
    insure loans to associations, including corporations not
    operated for profit, Indian tribes on Federal and State
    reservations and other federally recognized Indian tribes, and
    public and quasi-public agencies to provide for the application
    or establishment of soil conservation practices, shifts in land
    use, the conservation, development, use, and control of water,
    and the installation or improvement of drainage or waste
    disposal facilities, recreational developments, and essential
    community facilities including necessary related equipment, all
    primarily serving farmers, ranchers, farm tenants, farm
    laborers, rural businesses, and other rural residents, and to
    furnish financial assistance or other aid in planning projects
    for such purposes. 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. The Secretary may also make loans to any
    borrower to whom a loan has been made under the Rural
    Electrification Act of 1936 (7 U.S.C. 901 et seq.), for the
    conservation, development, use, and control of water, and the
    installation of drainage or waste disposal facilities,
    primarily serving farmers, ranchers, farm tenants, farm
    laborers, rural businesses, and other rural residents. When any
    loan made for a purpose specified in this paragraph is sold out
    of the Agricultural Credit Insurance Fund as an insured loan,
    the interest or other income thereon paid to an insured holder
    shall be included in gross income for purposes of chapter 1 of
    the Internal Revenue Code of 1954. With respect to loans of
    less than $500,000 made or insured under this paragraph that
    are evidenced by notes and mortgages, as distinguished from
    bond issues, borrowers shall not be required to appoint bond
    counsel to review the legal validity of the loan whenever the
    Secretary has available legal counsel to perform such review.
              (2) Water, waste disposal, and wastewater facility
            grants.--
                      (A) Authority.--
                              (i) In general.--The Secretary is
                            authorized to make grants to such
                            associations to finance specific
                            projects for works for the development,
                            storage, treatment, purification, or
                            distribution of water or the
                            collection, treatment, or disposal of
                            waste in rural areas.
                              (ii) Amount.--The amount of any grant
                            made under the authority of this
                            subparagraph shall not exceed 75 per
                            centum of the development cost of the
                            project to serve the area which the
                            association determines can be feasibly
                            served by the facility and to
                            adequately serve the reasonably
                            foreseeable growth needs of the area.
                              (iii) Grant rate.--The Secretary
                            shall fix the grant rate for each
                            project in conformity with regulations
                            issued by the Secretary that shall
                            provide for a graduated scale of grant
                            rates establishing higher rates for
                            projects in communities that have lower
                            community population and income levels.
                      (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) $200,000 for costs
                                    described in clause (i)(I); and
                                      (II) $200,000 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 $15,000,000 for each of
                            fiscal years [2019 through 2023] 2027
                            through 2031.
                      (C) Special evaluation assistance for rural
                    communities and households program.--
                              (i) In general.--The Secretary may
                            establish the Special Evaluation
                            Assistance for Rural Communities and
                            Households (SEARCH) program, to make
                            predevelopment planning grants for
                            feasibility studies, design assistance,
                            and technical assistance, to
                            financially distressed communities in
                            rural areas with populations of 2,500
                            or fewer inhabitants for water and
                            waste disposal projects described in
                            paragraph (1), this paragraph, and
                            paragraph (24).
                              (ii) Terms.--
                                      (I) Documentation.--With
                                    respect to grants made under
                                    this subparagraph, the
                                    Secretary shall require the
                                    lowest amount of documentation
                                    practicable.
                                      (II) Matching.--
                                    Notwithstanding any other
                                    provisions in this subsection,
                                    the Secretary may fund up to
                                    100 percent of the eligible
                                    costs of grants provided under
                                    this subparagraph, as
                                    determined by the Secretary.
                              (iii) Funding.--The Secretary may use
                            not more than 4 percent of the total
                            amount of funds made available for a
                            fiscal year for water, waste disposal,
                            and essential community facility
                            activities under this title to carry
                            out this subparagraph.
                              (iv) Relationship to other
                            authority.--The funds and authorities
                            provided under this subparagraph are in
                            addition to any other funds or
                            authorities the Secretary may have to
                            carry out activities described in
                            clause (i).
      (3) No grant shall be made under paragraph (2) of this
    subsection in connection with any project unless the Secretary
    determines that the project (i) will serve a rural area which,
    if such project is carried out, is not likely to decline in
    population below that for which the project was designed, (ii)
    is designed and constructed so that adequate capacity will or
    can be made available to serve the present population of the
    area to the extent feasible and to serve the reasonably
    foreseeable growth needs of the area, and (iii) is necessary
    for an orderly community development consistent with a
    comprehensive community water, waste disposal, or other
    development plan of the rural area.
      (4)(A) The term ``development cost'' means the cost of
    construction of a facility and the land, easements, and rights-
    of-way, and water rights necessary to the construction and
    operation of the facility.
      (B) The term ``project'' shall include facilities providing
    central service or facilities serving individual properties, or
    both.
              (5) Application requirements.--Not earlier than 60
            days before a preliminary application is filed for a
            loan under paragraph (1) or a grant under paragraph (2)
            for a water or waste disposal purpose, a notice of the
            intent of the applicant to apply for the loan or grant
            shall be published in a general circulation newspaper.
            The selection of engineers for a project design shall
            be done by a request for proposals by the applicant.
      (6) The Secretary may make grants aggregating not to exceed
    $30,000,000 in any fiscal year to public bodies or such other
    agencies as the Secretary may determine having authority to
    prepare comprehensive plans for the development of water or
    waste disposal systems in rural areas which do not have funds
    available for immediate undertaking of the preparation of such
    plan.
      (8) In each instance where the Secretary receives two or more
    applications for financial assistance for projects that would
    serve substantially the same group of residents within a single
    rural area, and one such application is submitted by a city,
    town, county or other unit of general local government, he
    shall, in the absence of substantial reasons to the contrary,
    provide such assistance to such city, town, county or other
    unit of general local government.
              (9) Conformity with state drinking water standards.--
            No Federal funds shall be made available under this
            section for a water system unless the Secretary
            determines that the water system will make significant
            progress toward meeting the standards established under
            title XIV of the Public Health Service Act (commonly
            known as the ``Safe Drinking Water Act'') (42 U.S.C.
            300f et seq.).
              (10) Conformity with federal and state water
            pollution control standards.--No Federal funds shall be
            made available under this section for a water treatment
            discharge or waste disposal system unless the Secretary
            determines that the effluent from the system conforms
            with applicable Federal and State water pollution
            control standards.
      (12)(A) The Secretary shall, in cooperation with institutions
    eligible to receive funds under the Act of July 2, 1862 (12
    Stat. 503-505, as amended; 7 U.S.C. 301-305, 307, and 308), or
    the Act of August 30, 1890 (26 Stat. 417-419, as amended; 7
    U.S.C. 321-326 and 328), including the Tuskegee Institute and
    State, substate, and regional planning bodies, establish a
    system for the dissemination of information and technical
    assistance on federally sponsored or funded programs. The
    system shall be for the use of institutions eligible to receive
    funds under the Act of July 2, 1862 (12 Stat. 503-505, as
    amended; 7 U.S.C. 301-305, 307 and 308), or the Act of August
    30, 1890 (26 Stat. 417-419, as amended; 7 U.S.C. 321-326 and
    328), including the Tuskegee Institute and State, substate, and
    regional planning bodies, and other persons concerned with
    rural development.
      (B) The informational system developed under this paragraph
    shall contain all pertinent information, including, but not
    limited to, information contained in the Federal Procurement
    Data System, Federal Assistance Program Retrieval System,
    Catalogue of Federal Domestic Assistance, Geographic
    Distribution of Federal Funds, United States Census, and Code
    of Federal Regulations.
      (C) The Secretary shall obtain from all other Federal
    departments and agencies comprehensive, relevant, and
    applicable information on programs under their jurisdiction
    that are operated in rural areas.
      (D) Of the sums authorized to be appropriated to carry out
    the provisions of this title, not more than $1,000,000 per year
    may be expended to carry out the provisions of this paragraph.
      (13) In the making of loans and grants for community waste
    disposal and water facilities under paragraphs (1) and (2) of
    this subsection the Secretary shall accord highest priority to
    the application of any municipality or other public agency
    (including an Indian tribe on a Federal or State reservation or
    other federally recognized Indian tribal group) in a rural
    community having a population not in excess of five thousand
    five hundred and which, in the case of water facility loans,
    has a community water supply system, where the Secretary
    determines that due to unanticipated diminution or
    deterioration of its water supply, immediate action is needed,
    or in the case of waste disposal, has a community waste
    disposal system, where the Secretary determines that due to
    unanticipated occurrences the system is not adequate to the
    needs of the community. The Secretary shall utilize the [Soil
    Conservation Service] Natural Resources Conservation Service in
    rendering technical assistance to applicants under this
    paragraph to the extent he deems appropriate.
              (14) Rural water and wastewater technical assistance
            and training programs.--
                      (A) In general.--The Secretary may make
                    grants to private nonprofit organizations for
                    the purpose of enabling them to provide to
                    associations described in paragraph (1) of this
                    subsection [technical assistance and training
                    to--] for--
                              (i) technical assistance and training
                            to--
                                      [(i)] (I) identify, and
                                    evaluate alternative solutions
                                    to, problems relating to the
                                    obtaining, storage, treatment,
                                    purification, or distribution
                                    of water or the collection,
                                    treatment, or disposal of waste
                                    in rural areas;
                                      [(ii)] (II) prepare
                                    applications to receive
                                    financial assistance for any
                                    purpose specified in paragraph
                                    (2) of this subsection from any
                                    public or private source;
                                      [(iii)] (III) improve the
                                    operation and maintenance
                                    practices at any existing works
                                    for the storage, treatment,
                                    purification, or distribution
                                    of water or the collection,
                                    treatment, or disposal of waste
                                    in rural areas;
                                      [(iv)] (IV) identify options
                                    to enhance the long-term
                                    sustainability of rural water
                                    and waste systems, including
                                    operational practices, revenue
                                    enhancements, partnerships,
                                    consolidation, regionalization,
                                    or contract services; and
                                      [(v)] (V) address the
                                    contamination of drinking water
                                    and surface water supplies by
                                    emerging contaminants,
                                    including per- and
                                    polyfluoroalkyl substances[.];
                                    or
                              (ii) disaster and recovery
                            assistance.
                      (B) Selection priority.--In selecting
                    recipients of grants to be made under
                    subparagraph (A), the Secretary shall give
                    priority to private nonprofit organizations
                    that have experience in providing the technical
                    assistance and training or disaster and
                    recovery assistance described in subparagraph
                    (A) to associations serving rural areas in
                    which residents have low income and in which
                    water supply systems or waste facilities are
                    unhealthful.
                      (C) Funding.--Not less than 3 percent and not
                    more than 5 percent of any funds appropriated
                    to carry out paragraph (2) of this subsection
                    for any fiscal year shall be reserved for
                    grants under subparagraph (A) unless the
                    applications, qualifying for grants, received
                    by the Secretary from eligible nonprofit
                    organizations for the fiscal year total less
                    than 3 percent of those funds.
      (15) In the case of water and waste disposal facility
    projects serving more than one separate rural community, the
    Secretary shall use the median population level and the
    community income level of all the separate communities to be
    served in applying the standards specified in paragraph (2) of
    this subsection and section 307(a)(3)(A).
      (16) Grants under paragraph (2) of this subsection may be
    used to pay the local share requirements of another Federal
    grant-in-aid program to the extent permitted under the law
    providing for such grant-in-aid program.
      (17)(A) In the approval and administration of a loan made
    under paragraph (1) for a water or waste disposal facility, the
    Secretary shall consider fully any recommendation made by the
    loan applicant or borrower concerning the technical design and
    choice of materials to be used for such facility.
      (B) If the Secretary determines that a design or materials,
    other than those that were recommended, should be used in the
    water or waste disposal facility, the Secretary shall provide
    such applicant or borrower with a comprehensive justification
    for such determination.
      (18) In making or insuring loans or making grants under this
    subsection, the Secretary may not condition approval of such
    loans or grants upon any requirement, condition or
    certification other than those specified under this title.
              (19) Community facilities grant program.--
                      (A) In general.--The Secretary may make
                    grants, in a total amount not to exceed
                    $10,000,000 for any fiscal year, to
                    associations, units of general local
                    government, nonprofit corporations, Indian
                    Tribes (as defined in section 4(e) of the
                    Indian Self-Determination and Education
                    Assistance Act), Indian tribes (as such term is
                    defined under section 4(e) of Public Law 93-
                    638, as amended),, and federally recognized
                    Indian tribes to provide the Federal share of
                    the cost of developing specific essential
                    community facilities in rural areas.
                      (B) Federal share.--
                              (i) In general.--Except as provided
                            in clauses (ii) and (iii), the
                            Secretary shall, by regulation,
                            establish the amount of the Federal
                            share of the cost of the facility under
                            this paragraph.
                              (ii) Maximum amount.--The amount of a
                            grant provided under this paragraph for
                            a facility shall not exceed 75 percent
                            of the cost of developing the facility.
                              (iii) Graduated scale.--The Secretary
                            shall provide for a graduated scale for
                            the amount of the Federal share
                            provided under this paragraph, with
                            higher Federal shares for facilities in
                            communities that have lower community
                            population and income levels, as
                            determined by the Secretary.
              (20) Community facilities grant program for rural
            communities with extreme unemployment and severe
            economic depression.--
                      (A) Definition of not employed rate.--In this
                    paragraph, the term ``not employed rate'', with
                    respect to a community, means the percentage of
                    individuals over the age of 18 who reside
                    within the community and who are ready,
                    willing, and able to be employed but are unable
                    to find employment, as determined by the
                    department of labor of the State in which the
                    community is located.
                      (B) Grant authority.--The Secretary may make
                    grants to associations, units of general local
                    government, nonprofit corporations, and Indian
                    tribes (as defined in section 4 of the Indian
                    Self-Determination and Education Assistance Act
                    (25 U.S.C. 450b)) in a State to provide the
                    Federal share of the cost of developing
                    specific essential community facilities in
                    rural communities with respect to which the not
                    employed rate is greater than the lesser of--
                              (i) 500 percent of the average
                            national unemployment rate on the date
                            of the enactment of this paragraph, as
                            determined by the Bureau of Labor
                            Statistics; or
                              (ii) 200 percent of the average
                            national unemployment rate during the
                            Great Depression, as determined by the
                            Bureau of Labor Statistics.
                      (C) Federal share.--Paragraph (19)(B) shall
                    apply to a grant made under this paragraph.
                      (D) Authorization of appropriations.--There
                    are authorized to be appropriated to carry out
                    this paragraph $50,000,000 for fiscal year 2001
                    and such sums as are necessary for each
                    subsequent fiscal year, of which not more than
                    5 percent of the amount made available for a
                    fiscal year shall be available for community
                    planning and implementation.
                      (E) Rural broadband.--Notwithstanding
                    subparagraph (C), the Secretary may make grants
                    to State agencies for use by regulatory
                    commissions in states with rural communities
                    without local broadband service to establish a
                    competitively, technologically neutral grant
                    program to telecommunications carriers or cable
                    operators that establish common carrier
                    facilities and services which, in the
                    commission's determination, will result in the
                    long-term availability to such communities of
                    affordable broadband services which are used
                    for the provision of high speed Internet
                    access.
              (21) Community facilities grant program for rural
            communities with high levels of out-migration or loss
            of population.--
                      (A) Grant authority.--The Secretary may make
                    grants to associations, units of general local
                    government, nonprofit corporations, and Indian
                    tribes (as defined in section 4 of the Indian
                    Self-Determination and Education Assistance Act
                    (25 U.S.C. 450b)) in a State to provide the
                    Federal share of the cost of developing
                    specific essential community facilities in any
                    geographic area--
                              (i) that is represented by--
                                      (I) any political subdivision
                                    of a State;
                                      (II) an Indian tribe on a
                                    Federal or State reservation;
                                    or
                                      (III) other federally
                                    recognized Indian tribal group;
                              (ii) that is located in a rural area
                            (as defined in section 381A);
                              (iii) with respect to which, during
                            the most recent 5-year period, the net
                            out-migration of inhabitants, or other
                            population loss, from the area equals
                            or exceeds 5 percent of the population
                            of the area; and
                              (iv) that has a median household
                            income that is less than the
                            nonmetropolitan median household income
                            of the United States.
                      (B) Federal share.--Paragraph (19)(B) shall
                    apply to a grant made under this paragraph.
                      (C) Authorization of appropriations.--There
                    are authorized to be appropriated to carry out
                    this paragraph $50,000,000 for fiscal year 2001
                    and such sums as are necessary for each
                    subsequent fiscal year, of which not more than
                    5 percent of the amount made available for a
                    fiscal year shall be available for community
                    planning and implementation.
              [(22) Rural water and wastewater circuit rider
            program.--
                      [(A) In general.--The Secretary shall
                    continue a national rural water and wastewater
                    circuit rider program that--
                              [(i) is consistent with the
                            activities and results of the program
                            conducted before the date of enactment
                            of this clause, as determined by the
                            Secretary; and
                              [(ii) receives funding from the
                            Secretary, acting through the Rural
                            Utilities Service.
                      [(B) Authorization of appropriations.--There
                    is authorized to be appropriated to carry out
                    this paragraph $25,000,000 for each of fiscal
                    years 2019 through 2023.]
              (22) Rural water and wastewater circuit rider
            program.--
                      (A) Establishment.--The Secretary, through
                    the Rural Utilities Service, shall continue a
                    national rural water and wastewater circuit
                    rider program that is consistent with the
                    activities and results of the program conducted
                    before the date of enactment of this Act, and
                    with this section, as determined by the
                    Secretary.
                      (B) Purpose.--The Rural Water and Wastewater
                    Circuit Rider Program shall provide a network
                    of expert rural water Circuit Riders located in
                    all 50 States, including United States
                    territories and Freely Associated States, which
                    work one-on-one with eligible rural water and
                    wastewater systems in major assistance
                    categories described in subparagraph (D). The
                    program is intended to help rural water systems
                    operate effectively and efficiently and achieve
                    long-term sustainability and compliance with
                    certain Federal laws and requirements,
                    including the Safe Water Drinking Act (42
                    U.S.C. 300f et seq.) and the Clean Water Act
                    (33 U.S.C. 1251 et seq.).
                      (C) Eligible entities.--In selecting
                    recipients of grants, contracts, and
                    cooperative agreements to be made available for
                    activities listed under subparagraph (D), the
                    Secretary shall select nonprofit organizations
                    that have demonstrated experience providing
                    technical assistance and disaster and recovery
                    assistance for water and wastewater utilities
                    nationwide. Awardees shall rely on personnel
                    that possess active water and wastewater
                    operators' licenses or overall knowledge of
                    water utilities necessary to carry out eligible
                    activities under subparagraph (D).
                      (D) Eligible uses of funds.--An eligible
                    entity shall use funds under the Rural Water
                    and Wastewater Circuit Rider program for a
                    rural water, wastewater, or wastewater disposal
                    facility for--
                              (i) technical assistance, including--
                                      (I) Board training;
                                      (II) managerial and financial
                                    operations with the effort to
                                    enhance the long-term
                                    sustainability of rural water
                                    and wastewater systems,
                                    including partnerships,
                                    consolidation, and
                                    regionalization;
                                      (III) physical operation and
                                    maintenance of rural water and
                                    wastewater infrastructure;
                                      (IV) water treatment;
                                      (V) regulatory compliance;
                                      (VI) facility security;
                                      (VII) loan application and
                                    reporting;
                                      (VIII) cybersecurity;
                                      (IX) implementation of
                                    cybersecurity plans,
                                    procedures, and technologies to
                                    protect against cyberthreats;
                                    or
                                      (X) other areas the Secretary
                                    deems appropriate;
                              (ii) disaster and recovery assistance
                            including--
                                      (I) direct on-site personnel
                                    and equipment to eligible
                                    utilities;
                                      (II) coordinating in
                                    statewide emergency response
                                    networks;
                                      (III) facilitating the
                                    development of action plans
                                    between utilities, local
                                    governments, the Federal
                                    Emergency Management Agency and
                                    the State emergency management
                                    agencies;
                                      (IV) resiliency and
                                    mitigation planning;
                                      (V) GIS mapping;
                                      (VI) updating vulnerability
                                    assessments, preparation of
                                    emergency response plans,
                                    communication protocols, hazard
                                    recognition and evaluation
                                    skills;
                                      (VII) conducting preliminary
                                    damage assessments of critical
                                    infrastructure;
                                      (VIII) addressing outstanding
                                    deficiencies focused on
                                    resolving health-based
                                    regulatory, operational,
                                    financial, and managerial
                                    deficiencies that impact the
                                    sustainability of the affected
                                    utilities;
                                      (IX) application and
                                    reporting assistance for
                                    Federal and State requirements
                                    including Federal Emergency
                                    Management Agency and insurance
                                    recovery claims;
                                      (X) providing for disaster
                                    readiness, support, and
                                    response activities targeted to
                                    disadvantaged communities that
                                    lack the financial resources
                                    and human capital necessary to
                                    adequately address significant
                                    health, safety, or sanitary
                                    concerns; and
                                      (XI) other areas the
                                    Secretary deems appropriate.
                              (iii) Additional uses.--In response
                            to activities under subparagraph (B)
                            related to natural disasters and
                            emergencies, not more than 5 percent of
                            each award may be used to purchase or
                            reimburse the rental costs of
                            appropriate emergency equipment, as
                            determined by the Secretary.
                      (E) Eligible project areas.--To receive
                    assistance under the Rural Water and Wastewater
                    Circuit Rider Program and carry out activities,
                    an eligible entity must serve--
                              (i) an area with a population of--
                                      (I) 10,000 or fewer
                                    inhabitants for technical
                                    assistance under subparagraph
                                    (D)(i); or
                                      (II) 50,000 or fewer
                                    inhabitants for disaster and
                                    recovery assistance under
                                    subparagraph (D)(ii); and
                              (ii) a public body, nonprofit
                            corporation, or Indian tribe with legal
                            authority to own and operate the water
                            facility.
                      (F) Authorization of appropriations.--There
                    is authorized to be appropriated to carry out
                    this paragraph $25,000,000 for fiscal year 2027
                    through fiscal year 2031.
              (23) Assistance for distressed water systems.--
                      (A) To promote the long-term sustainability
                    and financial viability of eligible rural
                    community waste disposal and water facilities
                    as described in subparagraph (B), for any
                    entity described in subparagraph (C), the
                    Secretary may--
                              (i) make a zero percent interest loan
                            or a 1 percent interest loan pursuant
                            to paragraph (1);
                              (ii) forgive the principal or
                            interest, or modify any term or
                            condition of a new or existing loan
                            made pursuant to paragraph (1);
                              (iii) refinance all or part of any
                            other loan made for an eligible purpose
                            under paragraph (1) of this subsection
                            or section 306C; or
                              (iv) waive any fee required to insure
                            or guarantee a loan pursuant to
                            paragraph (1) or (24).
                      (B) To promote the long-term sustainability
                    and financial viability of the services
                    provided by eligible entities, the Secretary
                    shall--
                              (i) provide assistance to an eligible
                            entity for the purpose of--
                                      (I) ensuring the entity has
                                    necessary resources to maintain
                                    public health, safety, or
                                    order;
                                      (II) addressing financial
                                    hardships of the eligible
                                    entity, its customers, and the
                                    community it serves;
                                      (III) improving the financial
                                    stability of the eligible
                                    entity, including changes to--
                                              (aa) operational
                                            practices;
                                              (bb) revenue
                                            enhancements;
                                              (cc) policy
                                            revisions; and
                                              (dd) contract
                                            services; and
                                      (IV) supporting a
                                    partnership, regionalization,
                                    or consolidation of the entity
                                    with another water system; and
                              (ii) require an applicant to--
                                      (I) receive financial
                                    planning assistance and prepare
                                    a long-term financial plan; or
                                      (II) partner, regionalize, or
                                    consolidate with another water
                                    system.
                      (C) An entity shall be eligible for
                    assistance under this paragraph if the entity--
                              (i) is a rural water, wastewater, or
                            wastewater disposal system with respect
                            to which assistance may be provided
                            under a water or wastewater, or waste
                            disposal program under this subsection
                            or section 306A, 306C, or 306D, and
                              (ii) is--
                                      (I) located in a socially
                                    disadvantaged community, a
                                    persistent poverty county,
                                    colonia, or distressed tribal
                                    area, as determined by the
                                    Secretary; or
                                      (II) facing an economic
                                    hardship as defined by the
                                    Secretary.
                      (D) An entity eligible under paragraph (1) or
                    (2) of subsection (a) may designate a water and
                    wastewater utility provider to apply for a loan
                    under this paragraph and carry out the loan
                    application on behalf of the eligible entity.
                      (E)(i) The Secretary shall evaluate such a
                    loan application on the basis of the needs of
                    the eligible entity and the beneficiaries of
                    the eligible entity rather than the needs of
                    the applicant water and wastewater utility
                    provider.
                      (ii) A water and wastewater utility provider
                    to whom a loan is made under this paragraph on
                    the basis of an application submitted on behalf
                    of an eligible entity may use the loan only for
                    the benefit of the residents of the eligible
                    area for which the loan is provided.
              (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.
                      (C) Use of loan guarantees for community
                    facilities.--The Secretary shall consider the
                    benefits to communities that result from using
                    loan guarantees in carrying out the community
                    facilities program and, to the maximum extent
                    practicable, use guarantees to enhance
                    community involvement.
                      (D) Priority.--
                              (i) Water or waste facility.--The
                            Secretary shall prioritize water and
                            waste facility projects under this
                            paragraph in rural areas with a
                            population of not more than 10,000
                            people.
                              (ii) Community facility.--Of the
                            funds made available to carry out this
                            paragraph for community facility loan
                            guarantees for a fiscal year the
                            following amounts shall be reserved for
                            projects in rural areas with a
                            population of not more than 20,000
                            inhabitants:
                                      (I) 100 percent of the first
                                    $200,000,000 so made available;
                                      (II) 50 percent of the next
                                    $200,000,000 so made available;
                                    and
                                      (III) 25 percent of all
                                    amounts exceeding $400,000,000
                                    so made available,
                            except that, to the extent that the
                            Secretary demonstrates that the funds
                            so reserved are not needed to finance a
                            community facility project in such a
                            rural area, the Secretary may use the
                            funds for other community facility
                            projects in accordance with this
                            paragraph.
              (25) Tribal college and university essential
            community facilities.--
                      (A) In general.--The Secretary may make
                    grants to an entity that is a Tribal College or
                    University (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.--The Secretary shall
                    establish the maximum percentage of the cost of
                    the facility that may be covered by a grant
                    under this paragraph, except that the Secretary
                    may not require non-Federal financial support
                    in an amount that is greater than 5 percent of
                    the total cost of the facility.
                      (C) Authorization of appropriations.--There
                    is authorized to be appropriated to carry out
                    this paragraph $10,000,000 for each of fiscal
                    years [2008 through 2023] 2027 through 2031.
              (26) Essential community facilities technical
            assistance and training.--
                      (A) In general.--The Secretary may make
                    grants to public bodies and private nonprofit
                    corporations (such as States, counties, cities,
                    townships, and incorporated towns and villages,
                    boroughs, authorities, districts, and Indian
                    tribes on Federal and State reservations) that
                    will serve rural areas for the purpose of
                    enabling the public bodies and private
                    nonprofit corporations to provide to
                    associations described in paragraph (1)
                    technical assistance and training, with respect
                    to essential community facilities programs
                    authorized under this subsection--
                              (i) to assist communities in
                            identifying and planning for community
                            facility needs;
                              (ii) to identify public and private
                            resources to finance community facility
                            needs;
                              (iii) to prepare reports and surveys
                            necessary to request financial
                            assistance to develop community
                            facilities;
                              (iv) to prepare applications for
                            financial assistance;
                              (v) to improve the management,
                            including financial management, related
                            to the operation of community
                            facilities; or
                              (vi) to assist with other areas of
                            need identified by the Secretary.
                      (B) Selection priority.--In selecting
                    recipients of grants under this paragraph, the
                    Secretary shall give priority to private,
                    nonprofit, or public organizations that have
                    experience in providing technical assistance
                    and training to rural entities.
                      (C) Funding.--Not less than 3 nor more than 5
                    percent of any funds appropriated to carry out
                    each of the essential community facilities
                    grant, loan and loan guarantee programs as
                    authorized under this subsection for a fiscal
                    year shall be reserved for grants under this
                    paragraph.
      (b) The service provided or made available through any such
    association shall not be curtailed or limited by inclusion of
    the area served by such association within the boundaries of
    any municipal corporation or other public body, or by the
    granting of any private franchise for similar service within
    such area during the term of such loan; nor shall the happening
    of any such event be the basis of requiring such association to
    secure any franchise, license, or permit as a condition to
    continuing to serve the area served by the association at the
    time of the occurrence of such event.
      (d) Any amounts appropriated under this section shall remain
    available until expended, and any amounts authorized for any
    fiscal year under this section but not appropriated may be
    appropriated for any succeeding fiscal year.

    SEC. 306A. EMERGENCY AND IMMINENT COMMUNITY WATER ASSISTANCE GRANT
                        PROGRAM.

      (a) In General.--The Secretary shall provide grants in
    accordance with this section to assist the residents of rural
    areas and small communities to secure adequate quantities of
    safe water--
              (1) after a significant decline in the quantity or
            quality of water available from the water supplies of
            such rural areas and small communities, or when such a
            decline is imminent; or
              (2) when repairs, partial replacement, or significant
            maintenance efforts on established water systems would
            remedy--
                      (A) an acute, or imminent, shortage of
                    quality water; or
                      (B) a significant decline, or imminent
                    decline, in the quantity or quality of water
                    that is available.
      (b) Priority.--In carrying out subsection (a), the Secretary
    shall--
              (1) give priority to projects described in subsection
            (a)(1), particularly to projects to address
            contamination that--
                      (A) poses a threat to human health or the
                    environment; and
                      (B) was caused by circumstances beyond the
                    control of the applicant for a grant, including
                    circumstances that occurred over a period of
                    time; and
              (2) provide at least 70 percent of all such grants to
            such projects.
      (c) Eligibility.--To be eligible to obtain a grant under this
    section, an applicant shall--
              (1) be a public or private nonprofit entity; and
              (2) in the case of a grant made under subsection
            (a)(1), demonstrate to the Secretary that the decline
            referred to in such subsection occurred, or will occur,
            within 2 years of the date the application was filed
            for such grant.
      (d) Uses.--
              (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, other than those covered
                    above for not to exceed 120 days when a more
                    permanent solution is not feasible in a shorter
                    time frame. Where drinking water supplies are
                    inadequate due to an event, as determined by
                    the Secretary, including drought, severe
                    weather, or contamination, the Secretary may
                    provide potable water for an additional period
                    of time not to exceed an additional 120 days in
                    order to protect public health.
              (2) Joint proposals.--Nothing in this section shall
            preclude rural communities from submitting joint
            proposals for emergency water assistance, subject to
            the restrictions contained in subsection (e). Such
            restrictions should be considered in the aggregate,
            depending on the number of communities involved.
      (e) Restrictions.--
              (1) Maximum population and income.--No grant provided
            under this section shall be used to assist any rural
            area or community that--
                      (A) includes any area in any city or town
                    with a population in excess of 10,000
                    inhabitants according to the most recent
                    decennial census of the United States; or
                      (B) has a median household income in excess
                    of the State nonmetropolitan median household
                    income.
              (2) Set-aside for smaller communities.--Not less than
            50 percent of the funds allocated under this section
            shall be allocated to rural communities with
            populations that do not exceed 3,000 inhabitants.
      (f) Maximum Grants.--Grants made under this section may not
    exceed--
              (1) in the case of each grant made under subsection
            (a)(1), $1,000,000; and
              (2) in the case of each grant made under subsection
            (a)(2), $150,000.
      (g) Full Funding.--Subject to subsection (e), grants under
    this section shall be made in an amount equal to 100 percent of
    the costs of the projects conducted under this section.
      (h) Application.--
              (1) Nationally competitive application process.--The
            Secretary shall develop a nationally competitive
            application process to award grants under this section.
            The process shall include criteria for evaluating
            applications, including population, median household
            income, and the severity of the decline, or imminent
            decline, in quantity or quality of water.
              (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.
      (i) Funding.--
              (1) Reservation.--
                      (A) In general.--For each fiscal year, not
                    less than 5 percent and not more than 7 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.--
                              (i) In general.--Funds reserved under
                            subparagraph (A) for a fiscal year
                            shall be reserved only until July 1 of
                            the fiscal year.
                              (ii) Exception.--Notwithstanding
                            clause (i), in response to an eligible
                            community where the drinking water
                            supplies are inadequate, as determined
                            by the Secretary, due to an event,
                            including drought, severe weather, or
                            contamination, the Secretary may use
                            funds described in subparagraph (A)
                            from July 1 through September 30 each
                            fiscal year to provide potable water
                            under this section in order to protect
                            public health.
              (2) Authorization of appropriations.--In addition to
            funds made available under paragraph (1), there is
            authorized to be appropriated to carry out this section
            $50,000,000 for each of fiscal years [2019 through
            2023] 2027 through 2031.

               *       *       *       *       *       *       *

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

      (a) In General.--The Secretary may make grants to the State
    of Alaska, a consortium formed pursuant to section 325 of the
    Department of the Interior and Related Agencies Appropriations
    Act, 1998 (Public Law 105-83; 111 Stat. 1597), and Native
    villages (as defined in section 3 of the Alaska Native Claims
    Settlement Act (43 U.S.C. 1602)) for the benefit of rural or
    Native villages in Alaska to provide for the development and
    construction of water and wastewater systems to improve the
    health and sanitation conditions in those villages.
      (b) Matching Funds.--To be eligible to receive a grant under
    subsection (a), the State of Alaska shall provide 25 percent in
    matching funds from non-Federal sources for any grant awarded
    under subsection (a).
      (c) Consultation With the State of Alaska.--The Secretary
    shall consult with the State of Alaska on a method of
    prioritizing the allocation of grants under subsection (a)
    according to the needs of, and relative health and sanitation
    conditions in, each village.
      (d) Authorization of Appropriations.--
              (1) In general.--There are authorized to be
            appropriated to carry out this section $30,000,000 for
            each of fiscal years [2008 through 2023] 2027 through
            2031.
              (2) Training and technical assistance.--Not more than
            2 percent of the amount made available under paragraph
            (1) for a fiscal year may be used by the State of
            Alaska, and not more than 2 percent of the amount made
            available under paragraph (1) for a fiscal year may be
            used by a consortium formed pursuant to section 325 of
            the Department of the Interior and Related Agencies
            Appropriations Act, 1998 (Public Law 105-83; 111 Stat.
            1597), for training and technical assistance programs
            relating to the operation and management of water and
            waste disposal services in rural and Native villages.
              (3) Availability.--Funds appropriated pursuant to the
            authorization of appropriations in paragraph (1) shall
            be available until expended.

    [SEC. 306E. RURAL DECENTRALIZED WATER SYSTEMS.

      [(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 60 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 and subgrants to eligible individuals
            for the construction, refurbishing, and servicing of
            individual household water well systems and
            individually owned household decentralized wastewater
            systems in rural areas that are or will be owned by the
            eligible individuals.
              [(2) Terms and amounts.--
                      [(A) Terms of loans.--A loan made with grant
                    funds under this section--
                              [(i) shall have an interest rate of 1
                            percent; and
                              [(ii) shall have a term not to exceed
                            20 years.
                      [(B) Amounts.--A loan or subgrant made with
                    grant funds under this section shall not exceed
                    $15,000 for each water well system or
                    decentralized wastewater 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.
              [(4) Ground well water contamination.--In the event
            of ground well water contamination, the Secretary shall
            allow a loan or subgrant to be made with grant funds
            under this section for the installation of water
            treatment where needed beyond the point of entry, with
            or without the installation of a new water well system.
      [(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 effective use of individually owned household water
    well systems, individually owned household decentralized
    wastewater systems, and ground water.
      [(d) Authorization of Appropriations.--There is authorized to
    be appropriated to carry out this section $20,000,000 for each
    of fiscal years 2019 through 2023.]

    SEC. 306E. RURAL DECENTRALIZED WATER SYSTEMS.

      (a) Definitions.--In this section:
              (1) Eligible individual.--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 80
            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.
              (2) Eligible grant recipient.--The term ``eligible
            grant recipient'' means a private nonprofit
            organization that uses a grant provided under this
            section for the purposes described in subsection
            (b)(1).
              (3) Qualified water quality testing.--The term
            ``qualified water quality testing'' means a baseline
            analysis of the bacterial and chemical characteristics
            of concern from a drinking water sample collected at
            the point of consumption and tested by a laboratory
            certified to conduct water quality testing that is
            provided to--
                      (A) the Secretary; and
                      (B) the eligible grant recipient receiving a
                    grant under this section and any eligible
                    individual served by the eligible grant
                    recipient.
      (b) Grants.--
              (1) In general.--The Secretary may make grants to an
            eligible grant recipient for the purpose of--
                      (A) providing loans and subgrants to eligible
                    individuals for--
                              (i) the construction, refurbishing,
                            and servicing of individual household
                            water well systems and individually
                            owned household decentralized
                            wastewater systems in rural areas that
                            are or will be owned by the eligible
                            individuals; or
                              (ii) in the event of ground well
                            water contamination, the installation
                            or replacement of water treatment,
                            where needed as determined by a
                            qualified water quality test or other
                            third party documentation to the
                            satisfaction of the Secretary;
                      (B) performing qualified water quality
                    testing of individual household water well
                    systems and individually utilized household
                    decentralized wastewater systems in rural areas
                    that are or will be utilized by the eligible
                    individuals; or
                      (C) providing technical assistance to
                    eligible individuals for--
                              (i) the installation or replacement
                            of individual household water well
                            systems and individually owned
                            household decentralized wastewater
                            systems in rural areas that are or will
                            be owned by the eligible individuals;
                              (ii) interpreting qualified water
                            quality tests; or
                              (iii) addressing ground well water
                            contamination.
              (2) Terms and amounts for loans and subgrants.--
                      (A) Terms of loans.--A loan made with grant
                    funds under this section--
                              (i) shall have an interest rate of 1
                            percent; and
                              (ii) shall have a term not to exceed
                            20 years.
                      (B) Amounts.--A loan or subgrant made with
                    grant funds under this section shall not exceed
                    $20,000 for each water well system or
                    decentralized wastewater 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.
              (4) Water treatment standards.--Water treatment
            provided under this section shall--
                      (A) incorporate components that are third-
                    party certified as compliant with relevant
                    consensus-based standards for drinking water
                    treatment units or systems, as determined by
                    the Secretary; and
                      (B) be installed, according to the
                    instructions of the manufacturer, by a
                    qualified, certified, or licensed water
                    treatment professional, including a
                    professional credentialed through a
                    manufacturer or third-party.
      (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 effective use of individually owned household water
    well systems, individually owned household decentralized
    wastewater systems, and ground water.
      (d) Limitation.--An eligible grant recipient cannot use more
    than 10 percent of a grant awarded under this section for the
    activities described under subparagraphs (B) and (C) of
    subsection (b)(1).
      (e) Authorization of Appropriations.--There is authorized to
    be appropriated to carry out this section $20,000,000 for each
    of fiscal years 2027 through 2031.
      Sec. 307. (a)(1) The period for repayment of loans under this
    subtitle shall not exceed forty years.
      (2) Except as otherwise provided in paragraphs (3), (4), (5),
    and (6) of this subsection, the interest rates on loans under
    this subtitle shall be as determined by the Secretary, but not
    in excess of the current average market yield on outstanding
    marketable obligations of the United States with remaining
    periods to maturity comparable to the average maturities of
    such loans, plus not to exceed 1 per centum, as determined by
    the Secretary, and adjusted to the nearest one-eighth of 1 per
    centum.
      (3)(A) Notwithstanding the provisions of the constitution or
    laws of any State limiting the rate or amount of interest that
    may be charged, taken, received, or reserved, except as
    provided in paragraph (6), the interest rates on loans (other
    than guaranteed loans), to public bodies or nonprofit
    associations (including Indian tribes on Federal and State
    reservations and other federally recognized Indian tribal
    groups) for water and waste disposal facilities and essential
    community facilities shall be set by the Secretary at rates not
    to exceed the current market yield for outstanding municipal
    obligations with remaining periods to maturity comparable to
    the average maturity for such loans, and adjusted to the
    nearest one-eighth of 1 per centum; and not in excess of 5 per
    centum per annum for any such loans which are for the upgrading
    of existing facilities or construction of new facilities as
    required to meet applicable health or sanitary standards in
    areas where the median family income of the persons to be
    served by such facility is below the poverty line prescribed by
    the Office of Management and Budget as adjusted under section
    624 of the Economic Opportunity Act of 1964 (42 U.S.C. 2971d)
    and in other areas as the Secretary may designate where a
    significant percentage of the persons to be served by such
    facilities are of low income, as determined by the Secretary;
    and not in excess of 7 per centum per annum on loans for such
    facilities that do not qualify for the 5 per centum per annum
    interest rate but are located in areas where the median
    household income of the persons to be served by the facility
    does not exceed 100 per centum of the statewide nonmetropolitan
    median household income.
      (B) Except as provided in subparagraph (D) and in paragraph
    (6), the interest rate on loans (other than guaranteed loans)
    under section 310D shall [not be--
              [(i) greater than the sum of--
                      [(I) an amount that does not exceed one-half
                    of the current average market yield on
                    outstanding marketable obligations of the
                    United States with maturities of 5 years; and
                      [(II) an amount not exceeding 1 percent per
                    year, as the Secretary determines is
                    appropriate; or
              [(ii) less than 5 percent per year.] be equal to the
            interest rate for direct farm ownership loans under
            this subtitle, not to exceed 5 percent per year.
      (C) Notwithstanding subparagraph (A), the Secretary shall
    establish loan rates for health care and related facilities
    based solely on the income of the area to be served, and such
    rates shall be otherwise consistent with such subparagraph.
              (D) Joint financing arrangements.--If a direct farm
            ownership loan is made under this subtitle as part of a
            joint financing arrangement and the amount of the
            direct farm ownership loan does not exceed 50 percent
            of the total principal amount financed under the
            arrangement, the interest rate on the direct farm
            ownership loan shall be a rate equal to the greater
            of--
                      (i) the difference between--
                              (I) 2 percent; and
                              (II) the interest rate for farm
                            ownership loans under this subtitle; or
                      (ii) 2.5 percent.
              (E) Interest rates for water and waste disposal
            facilities loans.--
                      (i) In general.--Except as provided in clause
                    (ii) and notwithstanding subparagraph (A), in
                    the case of a direct loan for a water or waste
                    disposal facility--
                              (I) in the case of a loan that would
                            be subject to the 5 percent interest
                            rate limitation under subparagraph (A),
                            the Secretary shall establish the
                            interest rate at a rate that is equal
                            to 60 percent of the current market
                            yield for outstanding municipal
                            obligations with remaining periods to
                            maturity comparable to the average
                            maturity of the loan, adjusted to the
                            nearest \1/8\ of 1 percent; and
                              (II) in the case of a loan that would
                            be subject to the 7 percent limitation
                            under subparagraph (A), the Secretary
                            shall establish the interest rate at a
                            rate that is equal to 80 percent of the
                            current market yield for outstanding
                            municipal obligations with remaining
                            periods to maturity comparable to the
                            average maturity of the loan, adjusted
                            to the nearest \1/8\ of 1 percent.
                      (ii) Exception.--Clause (i) does not apply to
                    a loan for a specific project that is the
                    subject of a loan that has been approved, but
                    not closed, as of the date of enactment of this
                    subparagraph.
      (4) Except as provided in paragraph (6), the interest rates
    on loans under sections 306(a)(1) and 310B of this title (other
    than guaranteed loans and loans as described in paragraph (3)
    of this subsection) shall be as determined by the Secretary,
    but not less than such rates as determined by the Secretary of
    the Treasury taking into consideration the current average
    market yield on outstanding marketable obligations of the
    United States with remaining periods to maturity comparable to
    the average maturities of such loans, adjusted in the judgment
    of the Secretary of the Treasury to provide for rates
    comparable to the rates prevailing in the private market for
    similar loans and considering the Secretary's insurance of the
    loans, plus an additional charge, prescribed by the Secretary,
    to cover the Secretary's losses and cost of administration,
    which charge shall be deposited in the Rural Development
    Insurance Fund, and further adjusted to the nearest one-eighth
    of 1 per centum.
      (5)(A) Except as provided in subparagraph (B), the interest
    rate on any loan made under this subtitle as a guaranteed loan
    shall be such rate as may be agreed upon by the borrower and
    the lender, but not in excess of a rate as may be determined by
    the Secretary.
      (B) In the case of a loan made under section 310B as a
    guaranteed loan, subparagraph (A) shall apply notwithstanding
    the provisions of the constitution or laws of any State
    limiting the rate or amount of interest that may be charged,
    taken, received, or reserved.
      (6)(A) Notwithstanding any other provision of this section,
    in the case of loans (other than guaranteed loans) made or
    insured under the authorities of this Act specified in
    subparagraph (B) for activities that involve the use of prime
    farmland as defined in subparagraph (C), the interest rates
    shall be the interest rates otherwise applicable under this
    section increased by 2 per centum per annum. Wherever
    practicable, construction by a State, municipality, or other
    political subdivision of local government that is supported by
    loans described in the preceding sentence shall be placed on
    land that is not prime farmland, in order to preserve the
    maximum practicable amount of prime farmlands for production of
    food and fiber. Where other options exist for the siting of
    such construction and where the governmental authority still
    desires to carry out such construction on prime farmland, the 2
    per centum interest rate increase provided by this clause shall
    apply, but such increased interest rate shall not apply where
    such other options do not exist.
      (B) The authorities referred to in subparagraph (A) are--
              (i) the provisions of section 306(a)(1) relating to
            loans for recreational developments and essential
            community facilities,
              (ii) section 310B(a)(2)(A); and
              (iii) subsections (d) and (e) of section 310B(d).
      (C) For purposes of this paragraph, the term ``prime
    farmland'' means prime farmlands and unique farmland as those
    terms are defined in sections 657.5 (a) and (b) of title 7,
    Code of Federal Regulations (1980).
      (b) The borrower shall pay such fees and other charges as the
    Secretary may require, and borrowers under the title shall
    prepay to the Secretary such taxes and insurance as the
    Secretary may require, on such terms and conditions as the
    Secretary may prescribe.
      (c) The Secretary shall take as security for the obligations
    entered into in connection with loans, mortgages on farms with
    respect to which such loans are made or such other security as
    the Secretary may require, and for obligations in connection
    with loans to associations under section 306, shall take liens
    on the facility or such other security as he may determine to
    be necessary. Such security instruments may constitute liens
    running to the United States notwithstanding the fact that the
    notes may be held by lenders other than the United States. A
    borrower may use the same collateral to secure two or more
    loans made, insured, or guaranteed under this subtitle, except
    that the outstanding amount of such loans may not exceed the
    total value of the collateral so used.
      (d) The Secretary may not--
              (1) require any borrower to provide additional
            collateral to secure a farmer program loan made or
            insured under this title, if the borrower is current in
            the payment of principal and interest on the loan; or
              (2) bring any action to foreclose, or otherwise
            liquidate, any such loan as a result of the failure of
            a borrower to provide additional collateral to secure a
            loan, if the borrower was current in the payment of
            principal and interest on the loan at the time the
            additional collateral was requested.

               *       *       *       *       *       *       *

      Sec. 309. (a) The fund established pursuant to section 11(a)
    of the Bankhead-Jones Farm Tenant Act, as amended, shall
    hereafter be called the Agricultural Credit Insurance Fund and
    is hereinafter in this subtitle referred to as the ``fund''.
    The fund shall remain available as a revolving fund for the
    discharge of the obligations of the Secretary under agreements
    insuring loans under this subtitle and loans and mortgages
    insured under prior authority.
      (b) Moneys in the fund not needed for current operations
    shall be deposited in the Treasury of the United States to the
    credit of the fund or invested in direct obligations of the
    United States or obligations guaranteed by the United States.
    The Secretary may purchase with money in the fund any notes
    issued by the Secretary to the Secretary of the Treasury for
    the purpose of obtaining money for the fund.
      (c) The Secretary is authorized to make and issue notes to
    the Secretary of the Treasury for the purpose of obtaining
    funds necessary for discharging obligations under this section
    and for authorized expenditures out of the fund. Such notes
    shall be in such form and denominations and have such
    maturities and be subject to such terms and conditions as may
    be prescribed by the Secretary with the approval of the
    Secretary of the Treasury. Such notes shall bear interest at a
    rate fixed by the Secretary of the Treasury, taking into
    consideration the current average market yield of outstanding
    marketable obligations of the United States having maturities
    comparable to the notes issued by the Secretary under this
    subtitle. The Secretary of the Treasury is authorized and
    directed to purchase any notes of the Secretary issued
    hereunder, and, for that purpose, the Secretary of the Treasury
    is authorized to use as a public debt transaction the proceeds
    from the sale of any securities issued under the Second Liberty
    Bond Act, as amended, and the purposes for which such
    securities may be issued under such Act, as amended, are
    extended to include the purchase of notes issued by the
    Secretary. All redemptions, purchases, and sales by the
    Secretary of the Treasury of such notes shall be treated as
    public debt transactions of the United States.
      (d) Notes and security acquired by the Secretary in
    connection with loans insured under this subtitle and under
    prior authority shall become a part of the fund. Notes may be
    held in the fund and collected in accordance with their terms
    or may be sold by the Secretary with or without agreements for
    insurance thereof at the balance due thereon, or on such other
    basis as the Secretary may determine from time to time. All net
    proceeds from such collections, including sales of notes or
    property, shall be deposited in and become a part of the fund.
      (e) The Secretary shall deposit in the fund all or a portion,
    not to exceed one-half of 1 per centum of the unpaid principal
    balance of the loan, of any charge collected in connection with
    the insurance of loans; and any remainder of any such charge
    shall be available for administrative expenses of the [Farmers
    Home Administration and the Rural Development Administration]
    Farm Service Agency and Rural Development, in proportion to
    such charges collected in connection with the insurance of
    loans by such agency, to be transferred annually and become
    merged with any appropriation for administrative expenses for
    such agency.
      (f) The Secretary may utilize the fund--
              (1) to pay amounts to which the holder of the note is
            entitled on loans heretofore or hereafter insured
            accruing between the date of any payments made by the
            borrower and the date of transmittal of any such
            payments to the lender. In the discretion of the
            Secretary, payments other than final payments need not
            be remitted to the holder until due or until the next
            agreed annual or semiannual remittance date;
              (2) to pay to the holder of the notes any deferred or
            defaulted installment or, upon assignment of the note
            to the Secretary at the Secretary's request, the entire
            balance due on the loan;
              (3) to purchase notes in accordance with agreements
            previously entered into;
              (4) to pay for contract services, taxes, insurance,
            prior liens, expenses necessary to make fiscal
            adjustments in connection with the application and
            transmittal of collections and other expenses and
            advances authorized in connection with insured loans,
            including the difference between interest payable by
            borrowers and interest to which insured lenders or
            insured holders are entitled under agreements with the
            Secretary included in contracts of insurance;
              (5) to pay the Secretary's costs of administration
            necessary to insure, make grants, service, and
            otherwise carry out the programs under this title not
            specifically covered by the Rural Development Insurance
            Fund of section 309A, including costs of the Secretary
            incidental to guaranteeing loans under this title,
            either directly from the Fund or by transfers from the
            Fund to, and merger with, any appropriations for
            administrative expenses.
      (g)(1) The assets and liabilities of, and authorizations
    applicable to, the [Farmers Home Administration] Farm Service
    Agency direct loan account created by section 338(c) (before
    the amendment made by section 749(a)(1) of the Federal
    Agriculture Improvement and Reform Act of 1996) and the
    Emergency Credit Revolving Fund referred to in section 326 are
    hereby transferred to the fund, and such account and such
    revolving fund are hereby abolished. Such assets and their
    proceeds, including loans made out of the fund pursuant to this
    section, shall be subject to the provisions of this section,
    the last sentence of section 306(a)(1), and the last sentence
    of section 307.
      (2) From time to time, and at least at the close of each
    fiscal year, the Secretary shall pay from the fund into the
    Treasury as miscellaneous receipts interest on the values as
    determined by the Secretary, with the approval of the
    Comptroller General, of the Government's equity transferred to
    the fund pursuant to the first sentence of this subsection plus
    the cumulative amount of appropriations made available after
    enactment of this provision as capital and for administration
    of the programs financed from the fund, less the average
    undisbursed cash balance in the fund during the year. The rate
    of such interest shall be determined by the Secretary of the
    Treasury, taking into consideration the current average yield
    on outstanding marketable obligations of the United States with
    remaining periods to maturity comparable to the average
    maturities of loans made or insured from the fund, adjusted to
    the nearest one-eighth of 1 per centum. Interest payments may
    be deferred with the approval of the Secretary of the Treasury,
    but any interest payments so deferred shall themselves bear
    interest. If at any time the Secretary determines that moneys
    in the fund exceed present and any reasonably prospective
    future requirements of the fund, such excess may be transferred
    to the general fund of the Treasury.
      (h)(1) The Secretary may provide financial assistance to
    borrowers for purposes provided in this title by guaranteeing
    loans made by any Federal or State chartered bank, savings and
    loan association, cooperative lending agency, or other legally
    organized lending agency.
      (2) The interest rate payable by a borrower on the portion of
    a guaranteed loan that is sold by a lender to the secondary
    market under this title may be lower than the interest rate
    charged on the portion retained by the lender, but shall not
    exceed the average interest rate charged by the lender on loans
    made to farm and ranch borrowers.
      (3) With regard to any loan guarantee on a loan made by a
    commercial or cooperative lender related to a loan made by the
    Secretary under section 310E--
              (A) the Secretary shall not charge a fee to any
            person (including a lender); and
              (B) a lender may charge a loan origination and
            servicing fee in an amount not to exceed 1 percent of
            the amount of the loan.
              (4) Maximum guarantee of 90 percent.--Except as
            provided in paragraphs (5), (6), and (7), a loan
            guarantee under this title shall be for not more than
            90 percent of the principal and interest due on the
            loan.
              (5) Refinanced loans guaranteed at 95 percent.--The
            Secretary shall guarantee 95 percent of--
                      (A) in the case of a loan that solely
                    refinances a direct loan made under this title,
                    the principal and interest due on the loan on
                    the date of the refinancing; or
                      (B) in the case of a loan that is used for
                    multiple purposes, the portion of the loan that
                    refinances the principal and interest due on a
                    direct loan made under this title that is
                    outstanding on the date the loan is guaranteed.
              (6)  [Beginning farmer loans] Down payment loan
            program participant guaranteed up to 95 percent.--The
            Secretary may guarantee not more than 95 percent of--
                      (A) a farm ownership loan for acquiring a
                    farm or ranch to a borrower who is
                    participating in the down payment loan program
                    under section 310E; or
                      (B) an operating loan to a borrower who is
                    participating in the down payment loan program
                    under section 310E that is made during the
                    period that the borrower has a direct loan
                    outstanding under this subtitle for acquiring a
                    farm or ranch.
              (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.
      (i)(1) Not later than 60 days after any State expresses to
    the Secretary, in writing, a desire to coordinate the provision
    of financial assistance to qualified beginning farmers and
    ranchers in the State, the Secretary and the State shall
    conclude a joint memorandum of understanding that shall govern
    the coordination of the provision of the financial assistance
    by the State and the Secretary.
      (2) The memorandum of understanding shall provide that if a
    State beginning farmer program makes a commitment to provide a
    qualified beginning farmer or rancher with financing to
    establish or maintain a viable farming or ranching operation,
    the Secretary shall, subject to applicable law, normal loan
    approval criteria, and the availability of funds provide the
    farmer or rancher with a down payment loan under section 310E
    or a guarantee of the financing provided by the State program,
    or both.
      (3) The Secretary shall not charge any person (including a
    lender) any fee with respect to the provision of any guarantee
    under this subsection.
      (4) The Secretary shall notify each State of the provisions
    of this subsection.
      (5) As used in paragraph (1), the term ``State beginning
    farmer program'' means any program that is--
              (A) carried out by, or under contract with, a State;
            and
              (B) designed to assist persons in obtaining the
            financial assistance necessary to enter agriculture and
            establish viable farming or ranching operations.
      (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. 310B. ASSISTANCE FOR RURAL ENTITIES.

      (a) Loans to Private Business Enterprises.--
              (1) Definitions.--In this subsection:
                      (A) Aquaculture.--The term ``aquaculture''
                    means the culture or husbandry of aquatic
                    animals or plants by private industry for
                    commercial purposes including the culture and
                    growing of fish by private industry for the
                    purpose of creating or augmenting publicly
                    owned and regulated stocks of fish.
                      (B) Solar energy.--The term ``solar energy''
                    means energy derived from sources (other than
                    fossil fuels) and technologies included in the
                    Federal Nonnuclear Energy Research and
                    Development Act of 1974, as amended.
                      (C) Precision agriculture; precision
                    agriculture technology.--The terms ``precision
                    agriculture'' and ``precision agriculture
                    technology'' have the meanings given those
                    terms in section 1201 of the Food Security Act
                    of 1985.
              (2) Loan purposes.--The Secretary may make and insure
            loans to public, private, or cooperative organizations
            organized for profit or nonprofit and private
            investment funds that invest primarily in cooperative
            organizations, to Indian tribes on Federal and State
            reservations or other federally recognized Indian
            tribal groups, or to individuals for the purposes of--
                      (A) improving, developing, or financing
                    business, industry, and employment (including
                    through the financing of working capital) and
                    improving the economic and environmental
                    climate in rural communities, including
                    pollution abatement and control;
                      (B) the conservation, development, and use of
                    water for aquaculture purposes in rural areas;
                      (C) reducing the reliance on nonrenewable
                    energy resources by encouraging the development
                    and construction of solar energy systems and
                    other renewable energy systems (including wind
                    energy systems and anaerobic digestors for the
                    purpose of energy generation), including the
                    modification of existing systems, in rural
                    areas; [and]
                      (D) to facilitate economic opportunity for
                    industries undergoing adjustment from
                    terminated Federal agricultural price and
                    income support programs or increased
                    competition from foreign trade[.]; and
                      (E) expanding the adoption of precision
                    agriculture practices, including by financing
                    the acquisition of precision agriculture
                    technology, in order to promote best practices,
                    reduce costs, and improve the environment.
              (3) Loan guarantees.--Loans described in paragraph
            (2), when originated, held, and serviced by other
            lenders, may be guaranteed by the Secretary under this
            section without regard to paragraphs (1) and (4) of
            section 333.
              (4) Maximum amount of principal.--No loan may be
            made, insured, or guaranteed under this subsection that
            exceeds $25,000,000 in principal amount.
      (b) Solid Waste Management Grants.--
              (1) In general.--The Secretary may make grants to
            nonprofit organizations for the provision of regional
            technical assistance to local and regional [governments
            and related agencies] governments, related agencies,
            and Indian tribes for the purpose of reducing or
            eliminating pollution of water resources and improving
            the planning and management of solid waste disposal
            facilities. Grants made under this paragraph for the
            provision of technical assistance shall be made for 100
            percent of the cost of such assistance.
              (2) Authorization of appropriations.--There is
            authorized to be appropriated to carry out this
            subsection $10,000,000 for each of fiscal years [2014
            through 2023] 2027 through 2031.
      (c) Rural Business Development Grants.--
              (1) In general.--The Secretary may make grants under
            this subsection to eligible entities described in
            paragraph (2) in rural areas that primarily serve rural
            areas for purposes described in paragraph (3).
              (2) Eligible entities.--The Secretary may make grants
            under this subsection to--
                      (A) governmental entities;
                      (B) Indian tribes; and
                      (C) nonprofit entities.
              (3) Eligible purposes for grants.--Eligible entities
            that receive grants under this subsection may use the
            grant funds for--
                      (A) business opportunity projects that--
                              (i) identify and analyze business
                            opportunities;
                              (ii) identify, train, and provide
                            technical assistance to existing or
                            prospective rural entrepreneurs and
                            managers;
                              (iii) assist in the establishment of
                            new rural businesses and the
                            maintenance of existing businesses,
                            including through business support
                            centers;
                              (iv) conduct regional, community, and
                            local economic development planning and
                            coordination, and leadership
                            development; and
                              (v) establish centers for training,
                            technology, and trade that will provide
                            training to rural businesses in the use
                            of interactive communications
                            technologies to develop international
                            trade opportunities and markets; or
                      (B) projects that support the development of
                    business enterprises that finance or
                    facilitate--
                              (i) the development of small and
                            emerging private business enterprise;
                              (ii) the establishment, expansion,
                            and operation of rural distance
                            learning networks;
                              (iii) the development of rural
                            learning programs that provide
                            educational instruction or job training
                            instruction related to potential
                            employment or job advancement to adult
                            students; and
                              (iv) the provision of technical
                            assistance and training to rural
                            communities for the purpose of
                            improving passenger transportation
                            services or facilities.
              (4) Authorization of appropriations.--
                      (A) In general.--There is authorized to be
                    appropriated to the Secretary to carry out this
                    subsection $65,000,000 for each of fiscal years
                    [2014 through 2023] 2027 through 2031, to
                    remain available until expended.
                      (B) Allocation.--Of the funds made available
                    under subparagraph (A) for a fiscal year, not
                    more than 10 percent shall be used for the
                    purposes described in paragraph (3)(A).
      (d)(1) The Secretary may participate in joint financing to
    facilitate development of private business enterprises in rural
    areas with the Economic Development Administration, the Small
    Business Administration, and the Department of Housing and
    Urban Development and other Federal and State agencies and with
    private and quasi-public financial institutions, through joint
    loans to applicants eligible under subsection (a) for the
    purpose of improving, developing, or financing business,
    industry, and employment and improving the economic and
    environmental climate in rural areas or through joint grants to
    applicants eligible under subsection (c) for such purposes,
    including in the case of loans or grants the development,
    construction, or acquisition of land, buildings, plants,
    equipment, access streets and roads, parking areas, utility
    extensions, necessary water supply and waste disposal
    facilities, refining, service and fees.
      (2) No financial or other assistance shall be extended under
    any provision of this section, except for cases in which such
    assistance does not exceed $1,000,000 or for cases in which
    direct employment will not be increased by more than fifty
    employees, that is calculated to or is likely to result in the
    transfer from one area to another of any employment or business
    activity provided by operations of the applicant, but this
    limitation shall not be construed to prohibit assistance for
    the expansion of an existing business entity through the
    establishment of a new branch, affiliate, or subsidiary of such
    entity if the establishment of such branch, affiliate, or
    subsidiary will not result in an increase in unemployment in
    the area of original location or in any other area where such
    entity conducts business operations unless there is reason to
    believe that such branch, affiliate, or subsidiary is being
    established with the intention of closing down the operations
    of the existing business entity in the area of its original
    location or in any other area where it conducts such
    operations.
      (3) No financial or other assistance shall be extended under
    any provision of this section, except for cases in which such
    assistance does not exceed $1,000,000 or for cases in which
    direct employment will not be increased by more than fifty
    employees, which is calculated to or likely to result in an
    increase in the production of goods, materials, or commodities,
    or the availability of services or facilities in the area, when
    there is not sufficient demand for such goods, materials,
    commodities, services, or facilities, to employ the efficient
    capacity of existing competitive commercial or industrial
    enterprises, unless such financial or other assistance will not
    have an adverse effect upon existing competitive enterprises in
    the area.
      (4) No financial or other assistance shall be extended under
    any provision of this section, except for cases in which such
    assistance does not exceed $1,000,000 or for cases in which
    direct employment will not be increased by more than fifty
    employees, if the Secretary of Labor certifies within 30 days
    after the matter has been submitted to him by the Secretary of
    Agriculture that the provisions of paragraphs (2) and (3) of
    this subsection have not been complied with. The Secretary of
    Labor shall, in cooperation with the Secretary of Agriculture,
    develop a system of certification which will insure the
    expeditious processing of requests for assistance under this
    section.
      (5) No grant or loan authorized to be made under this title
    shall require or be subject to the prior approval of any
    officer, employee, or agency of any State.
      (6) No loan commitment issued under this section shall be
    conditioned upon the applicant investing in excess of 10 per
    centum in the business or industrial enterprise for which
    purpose the loan is to be made unless the Secretary determines
    there are special circumstances which necessitate an equity
    investment by the applicant greater than 10 per centum.
      (7) No provision of law shall prohibit issuance by the
    Secretary of certificates evidencing beneficial ownership in a
    block of notes insured or guaranteed under this title or Title
    V of the Housing Act of 1949; any sale by the Secretary of such
    certificates shall be treated as a sale of assets for the
    purposes of the Budget and Accounting Act of 1921. Any security
    representing beneficial ownership in a block of notes
    guaranteed or insured under this title or Title V of the
    Housing Act of 1949 issued by a private entity shall be exempt
    from laws administered by the Securities and Exchange
    Commission, except sections 17, 22, and 24 of the Securities
    Act of 1933, as amended; however, the Secretary shall require
    (i) that the issuer place such notes in the custody of an
    institution chartered by a Federal or State agency to act as
    trustee and (ii) that the issuer provide such periodic reports
    of sales as the Secretary deems necessary.
      (e) Rural Cooperative Development Grants.--
              (1) Definitions.--In this subsection:
                      (A) Nonprofit institution.--The term
                    ``nonprofit institution'' means any
                    organization or institution, including an
                    accredited institution of higher education, no
                    part of the net earnings of which inures, or
                    may lawfully inure, to the benefit of any
                    private shareholder or individual.
                      (B) United states.--The term ``United
                    States'' means the several States, the District
                    of Columbia, the Commonwealth of Puerto Rico,
                    the Virgin Islands, Guam, American Samoa, and
                    the other territories and possessions of the
                    United States.
                      (C) Cooperative development.--The term
                    ``cooperative development'' means activities
                    including education, training, and technical
                    assistance, to support the start-up, expansion,
                    or ongoing sustainability of new and existing
                    cooperatives.
              (2) Grants.--The Secretary shall make grants
            effective October 1, 1996, under this subsection to
            nonprofit institutions for the purpose of enabling the
            institutions to establish and operate centers for rural
            cooperative development.
              (3) Goals.--The goals of a center funded under this
            subsection shall be to facilitate the creation of jobs
            in rural areas through the development of new rural
            cooperatives, value added processing, and rural
            businesses.
              (4) Application.--Any nonprofit institution seeking a
            grant under paragraph (2) shall submit to the Secretary
            an application containing a plan for the establishment
            and operation by the institution of a center or centers
            for cooperative development. The Secretary may approve
            the application if the plan contains the following:
                      (A) A provision that substantiates that the
                    center will effectively serve rural areas in
                    the United States.
                      (B) A provision that the primary objective of
                    the center will be to improve the economic
                    condition of rural areas through cooperative
                    development.
                      (C) A description of the activities that the
                    center will carry out to accomplish the
                    objective. The activities may include the
                    following:
                              (i) Programs for applied research and
                            feasibility studies that may be useful
                            to individuals, cooperatives, small
                            businesses, and other similar entities
                            in rural areas served by the center.
                              (ii) Programs for the collection,
                            interpretation, and dissemination of
                            information that may be useful to
                            individuals, cooperatives, small
                            businesses, and other similar entities
                            in rural areas served by the center.
                              (iii) Programs providing training and
                            instruction for individuals,
                            cooperatives, small businesses, and
                            other similar entities in rural areas
                            served by the center.
                              (iv) Programs providing loans and
                            grants to individuals, cooperatives,
                            small businesses, and other similar
                            entities in rural areas served by the
                            center.
                              (v) Programs providing technical
                            assistance, research services, and
                            advisory services to individuals,
                            cooperatives, small businesses, and
                            other similar entities in rural areas
                            served by the center.
                              (vi) Programs providing for the
                            coordination of services and sharing of
                            information among the center.
                      (D) A description of the contributions that
                    the activities are likely to make to the
                    improvement of the economic conditions of the
                    rural areas for which the center will provide
                    services.
                      (E) Provisions that the center, in carrying
                    out the activities, will seek, where
                    appropriate, the advice, participation,
                    expertise, and assistance of representatives of
                    business, industry, educational institutions,
                    the Federal Government, and State and local
                    governments.
                      (F) Provisions that the center will take all
                    practicable steps to develop continuing sources
                    of financial support for the center,
                    particularly from sources in the private
                    sector.
                      (G) Provisions for--
                              (i) monitoring and evaluating the
                            activities by the nonprofit institution
                            operating the center; and
                              (ii) accounting for money received by
                            the institution under this section.
              (5) Awarding grants.--Grants made under paragraph (2)
            shall be made on a competitive basis. In making grants
            under paragraph (2), the Secretary shall give
            preference to grant applications providing for the
            establishment of centers for rural cooperative
            development that--
                      (A) demonstrate a proven track record in
                    carrying out activities to promote and assist
                    the development of cooperatively and mutually
                    owned businesses;
                      (B) demonstrate previous expertise in
                    providing technical assistance in rural areas
                    to promote and assist the development of
                    cooperatively and mutually owned businesses;
                      (C) demonstrate the ability to assist in the
                    retention of businesses, facilitate the
                    establishment of cooperatives and new
                    cooperative approaches, and generate employment
                    opportunities that will improve the economic
                    conditions of rural areas;
                      (D) commit to providing technical assistance
                    and other services to [underserved and
                    economically distressed areas in rural areas of
                    the United States] socially vulnerable,
                    underserved, or distressed communities;
                      (E) demonstrate a commitment to--
                              (i) networking with and sharing the
                            results of the efforts of the center
                            with other cooperative development
                            centers and other organizations
                            involved in rural economic development
                            efforts; and
                              (ii) developing multiorganization and
                            multistate approaches to addressing the
                            economic development and cooperative
                            needs of rural areas; and
                      (F) commit to providing at least a 25 percent
                    matching contribution with private funds and
                    in-kind contributions, 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 all applications that satisfy this
                    subparagraph shall be given the same priority
                    for the scoring criterion based on satisfying
                    this subparagraph.
              (6) Grant period.--
                      (A) In general.--A grant awarded to a center
                    that has received no prior funding under this
                    subsection shall be made for a period of 1
                    year.
                      [(B) Multiyear grants.--If the Secretary
                    determines it to be in the best interest of the
                    program, the Secretary shall award grants for a
                    period of more than 1 year, but not more than 3
                    years, to a center that has successfully met
                    the parameters described in paragraph (5), as
                    determined by the Secretary.]
                      (B) Award renewals for qualified nonprofit
                    institutions.--The Secretary shall award a
                    grant under this subsection to a nonprofit
                    institution on the same terms and for the
                    establishment or operation of the same center
                    or centers for cooperative development for
                    which the nonprofit institution was awarded a
                    grant in the current fiscal year, if the
                    nonprofit institution--
                              (i) is a recipient of an award under
                            this subsection;
                              (ii) requests a renewal under this
                            subparagraph;
                              (iii) has submitted a complete
                            application under this subsection in
                            the preceding 2 fiscal years; and
                              (iv) has operated the center or
                            centers for cooperative development in
                            a manner which successfully meets the
                            parameters described in paragraph (5),
                            as determined by the Secretary.
              (7) Authority to extend grant period.--The Secretary
            may extend for 1 additional 12-month period the period
            in which a grantee may use a grant made under this
            subsection.
              (8) Technical assistance to prevent excessive
            unemployment or underemployment.--In carrying out this
            subsection, the Secretary may provide technical
            assistance to alleviate or prevent conditions of
            excessive unemployment, underemployment, outmigration,
            or low employment growth in economically distressed
            rural areas that the Secretary determines have a
            substantial need for the assistance. The assistance may
            include planning and feasibility studies, management
            and operational assistance, and studies evaluating the
            need for development potential of projects that
            increase employment and improve economic growth in the
            areas.
              (9) Grants to defray administrative costs.--The
            Secretary may make grants to defray not to exceed 75
            percent of the costs incurred by organizations and
            public bodies to carry out projects for which grants or
            loans are made under this subsection. For purposes of
            determining the non-Federal share of the costs, the
            Secretary shall consider contributions in cash and in
            kind, fairly evaluated, including premises, equipment,
            and services.
              (10) Cooperative research program.--The Secretary
            shall enter into a cooperative research agreement with
            1 or more qualified academic institutions in each
            fiscal year to conduct research (including research and
            analysis based on data from the latest available
            Economic Census conducted by the Bureau of the Census)
            on the effects of all types of cooperatives on the
            national economy. The Secretary shall analyze the data
            resulting from the research, and include the data and
            the analysis in the annual report submitted by the
            interagency working group under paragraph (12).
              (11) Addressing needs of minority communities.--
                      (A) Definition of socially disadvantaged
                    group.--In this paragraph, the term ``socially
                    disadvantaged group'' has the meaning given the
                    term in section 355(e).
                      (B) Reservation of funds.--
                              (i) In general.--If the total amount
                            appropriated under paragraph (13) for a
                            fiscal year exceeds $7,500,000, the
                            Secretary shall reserve an amount equal
                            to 20 percent of the total amount
                            appropriated for grants for cooperative
                            development centers, individual
                            cooperatives, or groups of
                            cooperatives--
                                      (I) that serve socially
                                    disadvantaged groups; and
                                      (II) a majority of the boards
                                    of directors or governing
                                    boards of which are comprised
                                    of individuals who are members
                                    of socially disadvantaged
                                    groups.
                              (ii) Insufficient applications.--To
                            the extent there are insufficient
                            applications to carry out clause (i),
                            the Secretary shall use the funds as
                            otherwise authorized by this
                            subsection.
              (12) Interagency working group.--Not later than 90
            days after the date of enactment of the Agricultural
            Act of 2014, the Secretary shall coordinate and chair
            an interagency working group to foster cooperative
            development and ensure coordination with Federal
            agencies and national and local cooperative
            organizations that have cooperative programs and
            interests. Not later than 180 days after the date of
            the enactment of this sentence and annually thereafter,
            the interagency working group shall submit to the
            Congress a report describing the activities carried out
            by the working group.
              (13) Authorization of appropriations.--There are
            authorized to be appropriated to carry out this
            subsection $40,000,000 for each of fiscal years [2014
            through 2023] 2027 through 2031.
      (f) Food Supply Chain Capacity and Resilience Guaranteed
    Loans.--
              (1) Definition of food supply chain guaranteed
            loan.--In this subsection, the term ``food supply chain
            guaranteed loan'' means a business and industry
            guaranteed loan that is made or guaranteed by the
            Secretary under subsection (a)(2)(A), including a
            guarantee described in subsection (a)(3).
              (2) Purpose.--A food supply chain guaranteed loan may
            be made for the purpose of financing new investments in
            the start-up or expansion of projects in the United
            States that will increase the capacity of the food
            supply chain in the United States to aggregate,
            process, manufacture, store, transport, wholesale, or
            distribute food, agricultural products, or agricultural
            inputs.
              (3) Limitations.--The maximum amount of a food supply
            chain guaranteed loan shall not exceed $40,000,000.
              (4) Loan guarantees in nonrural areas.--The Secretary
            may guarantee a food supply chain guaranteed loan to an
            eligible entity for a facility that is not located in a
            rural area if--
                      (A) the primary purpose of the loan guarantee
                    is for a facility to aggregate, process,
                    manufacture, store, transport, wholesale, or
                    distribute food agricultural products, or
                    agricultural inputs for agricultural producers
                    or processors that are located within 80 miles
                    of the facility;
                      (B) 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
                      (C) the total principal amount of food supply
                    chain guaranteed loans guaranteed for a fiscal
                    year under this paragraph does not exceed 10
                    percent of the total principal amount of food
                    supply chain guaranteed loans made for the
                    fiscal year under subsection (a)(2)(A).
              (5) Quarterly reports to congress.--Within 30 days
            after the end of each calendar quarter, 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 contains--
                      (A) an evaluation of the outcomes achieved
                    through use of the assistance, and the ability
                    of the recipient of the assistance to meet
                    performance goals;
                      (B) a description of any debt recovery made
                    with respect to a loan guaranteed under this
                    subsection, and agency projections for
                    activities for which the assistance is
                    provided; and
                      (C) any recommendations of the Secretary
                    regarding the implementation of this
                    subsection.
              (6) Reservation of funds.--
                      (A) In general.--For each of fiscal years
                    2025 through 2029, the Secretary shall reserve
                    not more than 5 percent of the funds made
                    available to carry out subsection (a) to carry
                    out this subsection.
                      (B) Availability of funds.--Funds reserved
                    under subparagraph (A) for a fiscal year shall
                    be reserved until April 1 of the fiscal year.
      (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)(2)(A), including
            guarantees described in paragraph (3)(A)(ii).
              (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) Eligibility.--
                              (i) 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).
                              (ii) Equity.--The Secretary may
                            guarantee a loan made for the purchase
                            of preferred stock or similar equity
                            issued by a cooperative organization or
                            a fund that invests primarily in
                            cooperative organizations, if the
                            guarantee significantly benefits 1 or
                            more entities eligible for assistance
                            for the purposes described in
                            subsection (a)(1), as determined by the
                            Secretary.
                      (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.]
              (5) Fees.--
                      (A) Initial guarantee fee.--The Secretary may
                    assess an initial guarantee fee for any
                    guaranteed business and industry loan in an
                    amount that does not exceed 3 percent of the
                    guaranteed principal portion of the loan.
                      (B) Periodic retention fee.--The Secretary
                    may assess a periodic retention fee for any
                    guaranteed business and industry loan in an
                    amount that does not exceed 0.75 percent of the
                    outstanding principal of the guaranteed loan.
                      (C) Disclosure.--In altering any fee charged
                    for any guaranteed business and industry loan,
                    the Secretary, not less than 30 days in advance
                    of any fee change, shall provide a public
                    disclosure, of the financial data, economic and
                    behavioral assumptions, calculations, and other
                    factors used to determine the new fee rates.
              (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)(2)(A).
                      (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.--
                      (A) In general.--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.
                      (B) Accounts receivable.--In the discretion
                    of the Secretary, 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, the
                    Secretary may take accounts receivable as
                    security for the obligations entered into in
                    connection with loans and a borrower may use
                    accounts receivable as collateral to secure a
                    loan made or guaranteed under this subsection.
              (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 that--
                                      (I)(aa) is in a rural area;
                                    and
                                      (bb) provides for the value-
                                    added processing of
                                    agricultural commodities; or
                                      (II) significantly benefits 1
                                    or more entities eligible for
                                    assistance for the purposes
                                    described in subsection (a)(1),
                                    as determined by the Secretary.
                      (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)(2)(A).
              (9) Locally or regionally produced agricultural food
            products.--
                      (A) Definitions.--In this paragraph:
                              (i) Locally or regionally produced
                            agricultural food product.--The term
                            ``locally or regionally produced
                            agricultural food product'' means any
                            agricultural food product that is
                            raised, produced, and distributed in--
                                      (I) the locality or region in
                                    which the final product is
                                    marketed, so that the total
                                    distance that the product is
                                    transported is less than 400
                                    miles from the origin of the
                                    product; or
                                      (II) the State in which the
                                    product is produced.
                              (ii) Underserved community.--The term
                            ``underserved community'' means a
                            community (including an urban or rural
                            community and an Indian tribal
                            community) that has, as determined by
                            the Secretary--
                                      (I) limited access to
                                    affordable, healthy foods,
                                    including fresh fruits and
                                    vegetables, in grocery retail
                                    stores or farmer-to-consumer
                                    direct markets; and
                                      (II) a high rate of hunger or
                                    food insecurity or a high
                                    poverty rate.
                      (B) Loan and loan guarantee program.--
                              (i) In general.--The Secretary shall
                            make or guarantee loans to individuals,
                            cooperatives, cooperative
                            organizations, businesses, and other
                            entities to establish and facilitate
                            enterprises that process, distribute,
                            aggregate, store, and market locally or
                            regionally produced agricultural food
                            products to support community
                            development and farm and ranch income.
                              (ii) Requirement.--The recipient of a
                            loan or loan guarantee under clause (i)
                            shall include in an appropriate
                            agreement with retail and institutional
                            facilities to which the recipient sells
                            locally or regionally produced
                            agricultural food products a
                            requirement to inform consumers of the
                            retail or institutional facilities that
                            the consumers are purchasing or
                            consuming locally or regionally
                            produced agricultural food products.
                              (iii) Priority.--In making or
                            guaranteeing a loan under clause (i),
                            the Secretary shall give priority to
                            projects that have components
                            benefitting underserved communities.
                              (iv) Reservation of funds.--
                                      (I) In general.--For each of
                                    fiscal years [2008 through
                                    2023] 2027 through 2031, the
                                    Secretary shall reserve not
                                    less than 5 percent of the
                                    funds made available to carry
                                    out this subsection to carry
                                    out this subparagraph.
                                      (II) Availability of funds.--
                                    Funds reserved under subclause
                                    (I) for a fiscal year shall be
                                    reserved until April 1 of the
                                    fiscal year.
      (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).
      (i) Appropriate Technology Transfer for Rural Areas
    Program.--
              (1) Definition of national nonprofit agricultural
            assistance institution.--In this subsection, the term
            ``national nonprofit agricultural assistance
            institution'' means an organization that--
                      (A) is described in section 501(c)(3) of the
                    Internal Revenue Code of 1986 and exempt from
                    taxation under 501(a) of that Code;
                      (B) has staff and offices in multiple regions
                    of the United States;
                      (C) has experience and expertise in operating
                    national agriculture technical assistance
                    programs;
                      (D) expands markets for the agricultural
                    commodities produced by producers through the
                    use of practices that enhance the environment,
                    natural resource base, and quality of life; and
                      (E) improves the economic viability of
                    agricultural operations.
              (2) Establishment.--The Secretary shall establish a
            national appropriate technology transfer for rural
            areas program to assist agricultural producers that are
            seeking information to--
                      (A) reduce input costs;
                      (B) conserve energy resources;
                      (C) diversify operations through new energy
                    crops and energy generation facilities; [and]
                      (D) expand markets for agricultural
                    commodities produced by the producers by using
                    practices that enhance the environment, natural
                    resource base, and quality of life[.]; and
                      (E) provides training opportunities and
                    resources for veterans (as defined in section
                    101(2) of title 38, United States Code) who
                    actively are or are seeking to become
                    agricultural producers, which shall be known as
                    the ``Armed to Farm Initiative''.
              (3) Implementation.--
                      (A) In general.--The Secretary shall carry
                    out the program under this subsection by making
                    a grant to, or offering to enter into a
                    cooperative agreement with, a national
                    nonprofit agricultural assistance institution.
                      (B) Grant amount.--A grant made, or
                    cooperative agreement entered into, under
                    subparagraph (A) shall provide 100 percent of
                    the cost of providing information described in
                    paragraph (2).
              (4) Authorization of appropriations.--There are
            authorized to be appropriated to carry out this
            subsection $5,000,000 for each of fiscal years [2008
            through 2023.] 2027 through 2031, of which--
                      (A) $3,500,000 shall be made available for
                    each fiscal year for activities described in
                    subparagraphs (A) through (D) of paragraph (2);
                    and
                      (B) $1,500,000 shall be available for each
                    fiscal year for activities described in
                    paragraph (2)(E).
      (j) Rural Economic Area Partnership Zones.--Effective
    beginning on the date of enactment of this subsection through
    September 30, [2023] 2031, the Secretary shall carry out those
    rural economic area partnership zones administratively in
    effect on the date of enactment of this subsection in
    accordance with the terms and conditions contained in the
    memorandums of agreement entered into by the Secretary for the
    rural economic area partnership zones, except as otherwise
    provided in this subsection.

               *       *       *       *       *       *       *

      Sec. 310D. (a) The Secretary is authorized to make and insure
    loans for any of the purposes referred to in section 303(a)[,
    or paragraphs (1) through (5) of section 304(a),] section
    304(a) to farmers and ranchers in the United States who (1) are
    citizens of the United States, (2) meet the requirements of
    paragraphs (2) through (4) of section 302, (3) are unable to
    obtain sufficient credit under section 302 to finance their
    actual needs, (4) are owners or operators of small or family
    farms (including new owners or operators), (5) are farmers or
    ranchers with a low income, and (6) demonstrate a need to
    maximize their income from farming or ranching operations. The
    Secretary is also authorized to make such loans to any farm
    cooperative or private domestic corporation or partnership, or
    such other legal entities as the Secretary considers
    appropriate, that is controlled by farmers and ranchers and
    engaged primarily and directly in farming or ranching in the
    United States if all of its members, stockholders, partners, or
    owners, as applicable, are citizens of the United States and
    the entity and all such members, stockholders, partners, or
    owners meet the requirements of paragraphs (2) through (6) of
    the preceding sentence.
      (b) Each loan made or insured under this section shall be
    repayable in such installments as the Secretary determines will
    provide for reduced payments during the initial repayment
    period of the loan and larger payments during the remainder of
    the repayment period of the loan.

    SEC. 310E. DOWN PAYMENT LOAN PROGRAM.

      (a) In General.--
              (1) Establishment.--Notwithstanding any other section
            of this subtitle, the Secretary shall establish, within
            the farm ownership loan program established under this
            subtitle, a program under which loans shall be made
            under this section to eligible farmers or ranchers for
            down payments on farm ownership loans.
              (2) Administration.--The Secretary shall be the
            primary coordinator of credit supervision for the down
            payment loan program established under this section, in
            consultation with the commercial or cooperative lender
            and, if applicable, the contracting credit counseling
            service selected under section 360(c).
      (b) Loan Terms.--
              (1) Principal.--Each loan made under this section
            shall be in an amount that does not [exceed 45 percent
            of the least] exceed, subject to section 305(a), 45
            percent of the lesser of--
                      (A) the purchase price of the farm or ranch
                    to be acquired; or
                      (B) the appraised value of the farm or ranch
                    to be acquired[; or].
                      [(C) $667,000.]
              (2) Interest rate.--The interest rate on any loan
            made by the Secretary under this section shall be a
            rate equal to the greater of--
                      (A) the difference obtained by subtracting 4
                    percent from the interest rate for farm
                    ownership loans under this subtitle; or
                      (B) 1.5 percent.
              (3) Duration.--Each loan under this section shall be
            made for a period of 20 years or less, at the option of
            the borrower.
              (4) Repayment.--Each borrower of a loan under this
            section shall repay the loan to the Secretary in equal
            annual installments.
              (5) Nature of retained security interest.--The
            Secretary shall retain an interest in each farm or
            ranch acquired with a loan made under this section that
            shall--
                      (A) be secured by the farm or ranch;
                      (B) be junior only to such interests in the
                    farm or ranch as may be conveyed at the time of
                    acquisition to the person (including a lender)
                    from whom the borrower obtained a loan used to
                    acquire the farm or ranch; and
                      (C) require the borrower to obtain the
                    permission of the Secretary before the borrower
                    may grant an additional security interest in
                    the farm or ranch.
      (c) Limitations.--
              (1) Borrowers required to make minimum down
            payment.--The Secretary shall not make a loan under
            this section to any borrower with respect to a farm or
            ranch if the contribution of the borrower to the down
            payment on the farm or ranch will be less than 5
            percent of the purchase price of the farm or ranch.
              (2) Prohibited types of financing.--The Secretary
            shall not make a loan under this section with respect
            to a farm or ranch if the farm or ranch is to be
            acquired with other financing that contains any of the
            following conditions:
                      (A) The financing is to be amortized over a
                    period of less than 30 years.
                      (B) A balloon payment will be due on the
                    financing during the 20-year period beginning
                    on the date the loan is to be made by the
                    Secretary.
      (d) Administration.--In carrying out this section, the
    Secretary shall, to the maximum extent practicable--
              (1) facilitate the transfer of farms and ranches from
            retiring farmers and ranchers to persons eligible for
            insured loans under this subtitle;
              (2) make efforts to widely publicize the availability
            of loans under this section among--
                      (A) potentially eligible farmers or ranchers;
                      (B) retiring farmers and ranchers; and
                      (C) applicants for farm ownership loans under
                    this subtitle;
              (3) encourage retiring farmers and ranchers to assist
            in the sale of their farms and ranches to eligible
            farmers or ranchers by providing seller financing;
              (4) coordinate the loan program established by this
            section with State programs that provide farm ownership
            or operating loans for--
                      (A) beginning farmers or ranchers;
                      (B) socially disadvantaged farmers or
                    ranchers, as defined in section 355(e); or
                      (C) veteran farmers or ranchers, as defined
                    in section 2501(a) of the Food, Agriculture,
                    Conservation, and Trade Act of 1990 (7 U.S.C.
                    2279(a)); and; and
              (5) establish annual performance goals to promote the
            use of the down payment loan program and other joint
            financing arrangements as the preferred choice for
            direct real estate loans made by any lender to an
            eligible farmer or rancher.
      (e) Definition of Eligible Farmer or Rancher.--In this
    section, the term ``eligible farmer or rancher'' means--
              (1) a qualified beginning farmer or rancher;
              (2) a socially disadvantaged farmer or rancher, as
            defined in section 355(e); and
              (3) a veteran farmer or rancher, as defined in
            section 2501(a) of the Food, Agriculture, Conservation,
            and Trade Act of 1990 (7 U.S.C. 2279(a)).

               *       *       *       *       *       *       *

    SEC. 310H. INTERMEDIARY RELENDING PROGRAM.

      (a) In General.--The Secretary may make or guarantee loans to
    eligible entities described in subsection (b) so that the
    eligible entities may relend the funds to individuals and
    entities for the purposes described in subsection (c).
      (b) Eligible Entities.--Entities eligible for loans and loan
    guarantees described in subsection (a) are--
              (1) public agencies;
              (2) Indian tribes;
              (3) cooperatives; and
              (4) nonprofit corporations.
      (c) Eligible Purposes.--The proceeds from loans made or
    guaranteed by the Secretary pursuant to subsection (a) may be
    relent by eligible entities for projects that--
              (1) predominately serve communities in rural areas;
            and
              (2) as determined by the Secretary--
                      (A) promote community development;
                      (B) establish new businesses;
                      (C) establish and support microlending
                    programs; and
                      (D) create or retain employment
                    opportunities.
      (d) Limitation.--The Secretary shall not make loans under
    section 623(a) of the Community Economic Development Act of
    1981 (42 U.S.C. 9812(a)).
      (e) Limitation on Loan Amounts.--The maximum amount of a loan
    by an eligible entity described in subsection (b) to
    individualsand entities for a project under subsection (c),
    including the unpaid balance of any existing loans, shall be
    the lesser of--
              (1) $400,000; and
              (2) 50 percent of the loan to the eligible entity
            under subsection (a).
      (f) Applications.--
              (1) In General.--To be eligible to receive a loan or
            loan guarantee under subsection (a), an eligible entity
            described in subsection (b) shall submit to the
            Secretary an application at such time, in such manner,
            and containing such information as the Secretary may
            require.
              (2) Evaluation.--In evaluating applications submitted
            under paragraph (1), the Secretary shall--
                      (A)(i) take into consideration the previous
                    performance of an eligible entity in carrying
                    out projects under subsection (c); and
                      (ii) in the case of satisfactory performance
                    under clause (i), require the eligible entity
                    to contribute less equity for subsequent loans
                    without modifying the priority given to
                    subsequent applications; and
                      (B) in assigning priorities to applications,
                    require an eligible entity to demonstrate that
                    it has a governing or advisory board made up of
                    business, civic, and community leaders who are
                    representative of the communities of the
                    service area, without limitation to the size of
                    the service area.
      (g) Return of Equity.--The Secretary shall establish a
    schedule that is consistent with the amortization schedules of
    the portfolio of loans made or guaranteed under subsection (a)
    for the return of any equity contribution made under this
    section by an eligible entity described in subsection (b), if
    the eligible entity is--
              (1) current on all principal and interest payments;
            and
              (2) in compliance with loan covenants.
      (h) Regulations.--The Secretary shall promulgate regulations
    and establish procedures reducing the administrative
    requirements on eligible entities described in subsection (b),
    including regulations to carry out the amendments made to this
    section by the Agriculture Improvement Act of 2018.
      (i) Authorization of Appropriations.--There is authorized to
    be appropriated to carry out this subsection $25,000,000 for
    each of fiscal years [2014 through 2023] 2027 through 2031.

    SEC. 310I. RELENDING PROGRAM TO RESOLVE OWNERSHIP AND SUCCESSION ON
                        FARMLAND.

      (a) In General.--The Secretary may make loans to eligible
    entities described in subsection (b) so that the eligible
    entities may relend the funds to individuals and entities for
    the purposes described in subsection (c).
      (b) Eligible Entities.--Entities eligible for loans described
    in subsection (a) are cooperatives, credit unions, and
    nonprofit organizations with--
              (1) certification under section 1805.201 of title 12,
            Code of Federal Regulations (or successor regulations),
            to operate as a lender;
              (2) experience assisting socially disadvantaged
            farmers and ranchers (as defined in subsection (a) of
            section 2501 of the Food, Agriculture, Conservation,
            and Trade Act of 1990 (7 U.S.C. 2279)) or limited
            resource or new and beginning farmers and ranchers,
            rural businesses, cooperatives, or credit unions,
            including experience in making and servicing
            agricultural and commercial loans; and
              (3) the ability to provide adequate assurance of the
            repayment of a loan.
      (c) Eligible Purposes.--The proceeds from loans made by the
    Secretary pursuant to subsection (a) shall be re-lent by
    eligible entities for projects that assist heirs with undivided
    ownership interests to resolve ownership and succession on
    farmland that has multiple owners.
      (d) Preference.--In making loans under subsection (a), the
    Secretary shall give preference to eligible entities--
              (1) with not less than 10 years of experience serving
            socially disadvantaged farmers and ranchers; and
              (2) in States that have adopted a statute consisting
            of an enactment or adoption of the Uniform Partition of
            Heirs Property Act, as approved and recommended for
            enactment in all States by the National Conference of
            Commissioners on Uniform State Laws in 2010, that
            relend to owners of heirs property (as defined in that
            Act).
      (e) Loan Terms and Conditions.--The following terms and
    conditions shall apply to loans made under this section:
              (1) The interest rate at which intermediaries may
            borrow funds under this section shall be determined by
            the Secretary.
              (2) The rates, terms, and payment structure for
            borrowers to which intermediaries lend shall be--
                      (A) determined by the intermediary in an
                    amount sufficient to cover the cost of
                    operating and sustaining the revolving loan
                    fund; and
                      (B) clearly and publicly disclosed to
                    qualified ultimate borrowers.
              (3) Borrowers to which intermediaries lend shall be--
                      (A) required to complete a succession plan as
                    a condition of the loan; and
                      (B) be offered the opportunity to borrow
                    sufficient funds to cover costs associated with
                    the succession plan under subparagraph (A) and
                    other associated legal and closing costs.
      (f) Cooperative Agreements for Heirs Property Resolution
    Through Direct Public Interest Legal Services.--
              (1) In general.--The Secretary shall enter into
            cooperative agreements with eligible entities to
            provide legal or accounting services to underserved
            heirs, at no cost to the underserved heirs, to assist
            in resolving undivided ownership interests on farmland
            or forest land, or land transitioning to farmland or
            forest land, that has multiple owners. Such a
            cooperative agreement must be for any of the following
            purposes:
                      (A) To assist with transitioning land to
                    agricultural production.
                      (B) To maintain land in agricultural
                    production.
                      (C) To increase access to programs
                    administered by the Secretary through the
                    resolution of real property claims in order to
                    allow real property owners to meet land
                    ownership eligibility requirements for
                    participation in a program administered by the
                    Secretary.
              (2) Administration of cooperative agreements.--
                      (A) Duration.--
                              (i) In general.--A cooperative
                            agreement under paragraph (1) shall be
                            in effect for not more than 4 years,
                            subject to clause (ii).
                              (ii) Special rule.--The Secretary may
                            extend a cooperative agreement or re-
                            enter into a cooperative agreement with
                            the same or a different eligible entity
                            to provide continued services for heirs
                            if--
                                      (I) property ownership is not
                                    resolved within the initial
                                    term of the original
                                    cooperative agreement; and
                                      (II) the entity certifies
                                    that the entity understands
                                    that the cooperative agreement
                                    is not guaranteed to be funded
                                    for more than 4 years after the
                                    commencement of the original
                                    cooperative agreement.
                      (B) Management of performance.--
                              (i) Annual reports.--An eligible
                            entity must provide annual reports to
                            the Secretary summarizing the progress
                            made during each fiscal year towards
                            achieving the goals of the cooperative
                            agreement for the heirs for whom
                            services are provided under the
                            cooperative agreement.
                              (ii) Information and data.--The
                            Secretary may require an eligible
                            entity to provide the Secretary with
                            such information or data as the
                            Secretary deems necessary to determine
                            that the eligible entity is making
                            acceptable progress. The data may not
                            include personally identifiable
                            information.
                              (iii) Effect of failure to
                            demonstrate success.--If an eligible
                            entity providing services under such a
                            cooperative agreement does not
                            demonstrate success, as determined by
                            the Secretary, in resolving or
                            reasonably attempting to resolve the
                            property claims of an heir, the
                            Secretary may terminate the agreement.
                      (C) Implementation.--The Secretary may
                    utilize requests for public input or the formal
                    rulemaking process to effectuate this
                    subsection. At a minimum, the Secretary shall
                    make publicly available the criteria for
                    selecting an eligible entity to enter into an
                    agreement to provide services, the
                    administrative and performance requirements for
                    cooperative agreements under this subsection,
                    as well as codify within its internal policy
                    its implementation process.
                      (D) Heirs property not in farming.--On a
                    limited basis, and when determined by the
                    Secretary to meet the purposes of a program
                    administered by the Secretary and to expand
                    access to such a program, the Secretary may
                    allow an eligible entity to provide services at
                    no cost to an heir who is not an underserved
                    heir if--
                              (i) the land with respect to which
                            the services are to be provided is not
                            farmland or in agricultural production,
                            but could be viably productive for
                            agricultural, conservation, or forestry
                            purposes;
                              (ii) the heir satisfies all other
                            requirements of the definition of
                            ``underserved heir'';
                              (iii) the heir can provide proof to
                            substantiate that the heir is in
                            control of the real property; and
                              (iv) the heir certifies to the
                            Secretary that the heir intends to
                            apply for, and make a good faith effort
                            to enroll the land in, a program
                            administered by the Secretary once
                            property claims to the land are
                            resolved through services provided
                            under a cooperative agreement entered
                            into under this subsection.
              (3) Definitions.--In this subsection:
                      (A) Eligible entity.--The term ``eligible
                    entity'' means a nonprofit organization that--
                              (i) provides legal or accounting
                            services to an underserved heir at no
                            cost to the underserved heir to resolve
                            property ownership issues; and
                              (ii) has demonstrated experience in
                            resolving issues related to ownership
                            and succession on farmland or forest
                            land that has multiple owners.
                      (B) Limited resource heir.--An heir shall be
                    considered a limited resource heir for purposes
                    of this subsection if--
                              (i) the total household income of the
                            heir is at or below the national
                            poverty level for a family of 4, or
                            less than 50 percent of the county
                            median household income for the 2
                            immediately preceding calendar years,
                            as determined annually using data of
                            the Department of Commerce; or
                              (ii) the property of the heir for
                            which legal services are provided
                            pursuant to a cooperative agreement
                            entered into under this subsection is
                            in a persistent poverty community, as
                            determined annually on the basis of
                            data from the Department of Commerce,
                            or a socially vulnerable area, as
                            designated by the Centers on Disease
                            Control and Prevention.
                      (C) Underserved heir.--The term ``underserved
                    heir'' means an heir with an undivided
                    ownership interest in farmland or forest land
                    that has multiple owners, who is--
                              (i) a limited resource heir;
                              (ii) a member of a socially
                            disadvantaged group (as defined in
                            section 2501(a) of the Food,
                            Agriculture, Conservation, and Trade
                            Act of 1990); or
                              (iii) a veteran (as defined in
                            section 101(2) of title 38, United
                            States Code).
              (4) Annual reports to congress.--Within 1 year after
            the date of the enactment of this subsection, and
            annually thereafter, the Secretary shall prepare, make
            public, and submit to the Committee on Agriculture of
            the House of Representatives and the Committee on
            Agriculture, Nutrition, and Forestry of the Senate a
            written report on the activities carried out under this
            subsection in the year covered by the report.
              (5) Limitations on authorization of appropriations.--
            To carry out this subsection, there is authorized to be
            appropriated to the Secretary $60,000,000 for each of
            fiscal years 2027 through 2031.
      [(f)] (g) Report.--[Not later than 1 year after the date of
    enactment of this section, the Secretary shall] The Secretary
    shall annually 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
    operation and outcomes of the program under this section, with
    recommendations on how to strengthen the program.
      [(g)] (h) Authorization of Appropriations.--There is
    authorized to be appropriated to carry out this section
    $10,000,000 for each of fiscal years 2019 through [2023] 2031.

               *       *       *       *       *       *       *

                          Subtitle B--Operating Loans

    SEC. 311. PERSONS ELIGIBLE FOR LOANS.

      (a) In General.--
              (1) Eligibility requirements.--The Secretary may make
            and insure loans under this subtitle to farmers and
            ranchers in the United States, and to farm cooperatives
            and private domestic corporations, partnerships, joint
            operations, trusts, limited liability companies, and
            such other legal entities as the Secretary considers
            appropriate, that are controlled by farmers and
            ranchers and engaged primarily and directly in farming
            or ranching in the United States, subject to the
            conditions specified in this section. To be eligible
            for such loans, applicants who are individuals, or, in
            the case of cooperatives, corporations, partnerships,
            joint operations, trusts, limited liability companies,
            and such other legal entities, individuals holding [a
            majority] at least a 50 percent interest in such
            entity, must(A) be citizens of the United States, (B)
            for direct loans only, have either training or farming
            experience that the Secretary determines is sufficient
            to assure reasonable prospects of success in the
            proposed farming operations, taking into consideration
            all farming experience of the applicant, without regard
            to any lapse between farming experiences, (C) be or
            will become operators of not larger than family farms
            (or in the case of cooperatives, corporations,
            partnerships, joint operations, trusts, limited
            liability companies, and such other legal entities in
            which [a majority]at least a 50 percent interest is
            held by individuals who are related by blood or
            marriage, as defined by the Secretary, such individuals
            must be or will become either owners or operators of
            not larger than a family farm and at least one such
            individual must be or will become an operator of not
            larger than a family farm or, in the case of holders of
            the entire interest who are related by blood or
            marriage and all of whom are or will become farm
            operators, the ownership interest of each such holder
            separately constitutes not larger than a family farm,
            even if their interests collectively constitute larger
            than a family farm, as defined by the Secretary), and
            (D) be unable to obtain sufficient credit elsewhere to
            finance their actual needs at reasonable rates and
            terms, taking into consideration prevailing private and
            cooperative rates and terms in the community in or near
            which the applicant resides for loans for similar
            purposes and periods of time. In addition to the
            foregoing requirements of this subsection, in the case
            of corporations, partnerships, joint operations,
            trusts, limited liability companies, and such other
            legal entities, the family farm requirement of
            subparagraph (C) of the preceding sentence shall apply
            as well to the farm or farms in which the entity has an
            operator interest and the requirement of subparagraph
            (D) of the preceding sentence shall apply as well to
            the entity in the case of cooperatives, corporations,
            partnerships, joint operations, trusts, limited
            liability companies, and such other legal entities.
              [(2) Special rule.--An entity]
              (2) Special rules.--
                      (A) Eligibility of qualified operators.--
                    Qualified operators, as defined by the
                    Secretary, shall be considered to meet the
                    operator requirement of paragraph (1).
                      (B) Eligibility of certain operating-only
                    entities.--An entity  that is an operator
                    described in paragraph (1) that is owned, in
                    whole or in part, by other entities, shall be
                    considered to meet the direct ownership
                    requirement imposed under paragraph (1) if at
                    least 75 percent of the [ownership interests of
                    each embedded entity of the entity is owned
                    directly or indirectly by the individuals that
                    own the family farm] total ownership interests
                    of the embedded entity, or of the other
                    entities, is owned, directly or indirectly, by
                    qualified operators of the farm improved or
                    supported with funds under this subtitle.
      (b)(1) Loans may also be made under this subtitle without
    regard to the requirements of clauses (2) and (3) of subsection
    (a) to youths to enable them to operate enterprises in
    connection with their participation in 4-H Clubs, Future
    Farmers of America, and similar organizations.
      (2) A person receiving a loan under this subsection who
    executes a promissory note therefor shall thereby incur full
    personal liability for the indebtedness evidenced by such note
    in accordance with its terms free of any disability of
    minority.
      (3) For loans under this subsection the Secretary may accept
    the personal liability of a cosigner of the promissory note in
    addition to the borrowers' personal liability.
              (4) Youth enterprises not farming or ranching.--The
            operation of an enterprise by a youth under this
            subsection shall not be considered the operation of a
            farm or ranch under this title.
              (5) Equitable considerations for default.--
                      (A) Debt forgiveness.--
                              (i) In general.--The Secretary may,
                            on a case-by-case basis, provide debt
                            forgiveness to a borrower for a loan
                            made under this subsection if the
                            borrower was unable to timely repay the
                            loan due to circumstances beyond the
                            control of the borrower, as determined
                            by the Secretary, including any natural
                            disaster, act of terrorism, or other
                            man-made disaster that results in an
                            inordinate level of damage or
                            disruption severely affecting the
                            borrower.
                              (ii) Eligibility for future loans.--
                            Notwithstanding any other provision of
                            law, debt forgiveness provided under
                            this subparagraph shall not be used by
                            any Federal agency in determining the
                            eligibility of the borrower for any
                            loan made or guaranteed by the agency.
                      (B) Education loans.--Notwithstanding any
                    other provision of law, if a borrower becomes
                    delinquent or is provided with debt forgiveness
                    with respect to a youth loan made under this
                    subsection, the borrower shall not become
                    ineligible, as a result of the delinquency or
                    debt forgiveness, to receive loans and loan
                    guarantees from the Federal Government to pay
                    for education expenses of the borrower.
      (c) Direct Loans.--
              (1) In general.--Subject to paragraphs (3) and (4),
            the Secretary may make a direct loan under this
            subtitle only to a farmer or rancher who--
                      (A) is a qualified beginning farmer or
                    rancher;
                      (B) has not received a previous direct
                    operating loan made under this subtitle; or
                      (C) has received a previous direct operating
                    loan made under this subtitle during 6 or fewer
                    years.
              (2) Definition of direct operating loan.--In this
            subsection, the term ``direct operating loan'' does not
            include--
                      (A) a loan made to a youth under subsection
                    (b); or
                      (B) a microloan made to a beginning farmer or
                    rancher or a veteran farmer or rancher (as
                    defined in section 2501(e) of the Food,
                    Agriculture, Conservation, and Trade Act of
                    1990 (7 U.S.C. 2279(e)).
              (3) Transition rule.--If, as of the date of enactment
            of this paragraph, a farmer or rancher has received a
            direct operating loan under this subtitle during each
            of 4 or more previous years, the borrower shall be
            eligible to receive a direct operating loan under this
            subtitle during 3 additional years after the date of
            enactment of this paragraph.
              (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)).
              (5) Annual report on term limits on direct operating
            loans.--
                      (A) In general.--The Secretary shall prepare
                    a report annually that describes--
                              (i) the status of the direct
                            operating loan program of the
                            Department of Agriculture; and
                              (ii) the impact of term limits on
                            direct loan borrowers.
                      (B) Demographic information.--
                              (i) In general.--The report shall
                            provide a demographic breakdown, on a
                            State-by-State basis, of--
                                      (I) all direct loan
                                    borrowers; and
                                      (II) borrowers that have
                                    reached the eligibility limit
                                    for direct lending programs
                                    during the previous calendar
                                    year.
                              (ii) Demographic information.--The
                            available demographic information shall
                            include, to the maximum extent
                            practicable, a description of race or
                            ethnicity, gender, age, type of farm or
                            ranch, financial classification, number
                            of years of indebtedness, veteran
                            status, and other similar information,
                            as determined by the Secretary.
                      (C) Additional content.--In addition to
                    information described in subparagraph (B), the
                    report shall provide--
                              (i) a demographic analysis of the
                            borrowers impacted by term limits;
                              (ii) information on the conditions
                            impacting the direct lending portfolio
                            of the Department of Agriculture,
                            including impacts by region and
                            agriculture sector, and credit
                            availability within those regions and
                            sectors;
                              (iii) to the maximum extent
                            practicable, information on the status
                            of borrower operations impacted by term
                            limits; and
                              (iv) recommendations, if appropriate,
                            to address any identifiable unmet
                            credit needs.
                      (D) Submission.--The Secretary shall--
                              (i) annually submit 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
                              (ii) make the report available to the
                            public, including posting the report on
                            the website of the Department of
                            Agriculture.

    SEC. 312. PURPOSES OF LOANS.

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

    SEC. 313. LIMITATIONS ON AMOUNT OF OPERATING LOANS.

      (a) In General.--The Secretary shall make or insure no loan
    under this subtitle--
              (1) that would cause the total principal indebtedness
            outstanding at any one time for loans made under this
            subtitle to any one borrower to exceed, in the case of
            a loan other than a loan guaranteed by the Secretary,
            [$400,000, or, in the case of a loan guaranteed by the
            Secretary, $1,750,000 (increased, beginning with fiscal
            year 2019] $750,000, or, in the case of a loan
            guaranteed by the Secretary, $3,000,000 (increased,
            beginning with fiscal year 2026, by the inflation
            percentage applicable to the fiscal year in which the
            loan is guaranteed and reduced by the unpaid
            indebtedness of the borrower on loans under the
            sections specified in section 305 that are guaranteed
            by the Secretary); or
                      (2) for the purchasing or leasing of land
                    other than for cash rent, or for carrying on
                    any land leasing or land purchasing program.
      (b) Inflation Percentage.--For purposes of this section, the
    inflation percentage applicable to a fiscal year is the
    percentage (if any) by which--
              (1) the average of the Prices Paid By Farmers Index
            (as compiled by the National Agricultural Statistics
            Service of the Department of Agriculture) for the 12-
            month period ending on July 31 of the immediately
            preceding fiscal year; exceeds
              (2) the average of such index (as so defined) for the
            12-month period that immediately precedes the 12-month
            period described in paragraph (1).
      (c) Microloans.--
              (1) In general.--Subject to paragraph (2), the
            Secretary may establish a program to make or guarantee
            microloans.
              (2) Limitations.--The Secretary shall not make or
            guarantee a microloan under this subsection that would
            cause the total principal indebtedness outstanding at
            any 1 time for microloans made under this subsection to
            any 1 borrower to exceed [$50,000] $100,000.
              (3) Applications.--To the maximum extent practicable,
            the Secretary shall limit the administrative burdens
            and streamline the application and approval process for
            microloans under this subsection.
              (4) Cooperative lending pilot projects.--
                      (A) In general.--Subject to subparagraph (B),
                    during each of the 2014 through [2023] 2031
                    fiscal years, the Secretary may carry out a
                    pilot project to make loans to community
                    development financial institutions, as the
                    Secretary determines appropriate--
                              (i) to make or guarantee microloans
                            consistent with the terms provided
                            under this subsection; and
                              (ii) to provide business, financial,
                            marketing, and credit management
                            services to microloan borrowers.
                      (B) Requirements.--Prior to making a loan to
                    an institution described in subparagraph (A),
                    the Secretary shall--
                              (i) review and approve--
                                      (I) the loan loss reserve
                                    fund for microloans established
                                    by the institution; and
                                      (II) the underwriting
                                    standards for microloans of the
                                    institution; and
                              (ii) establish such other
                            requirements for making a loan to the
                            institution as the Secretary determines
                            necessary.
                      (C) Eligibility.--To be eligible for a loan
                    under subparagraph (A), an institution
                    described in subparagraph (A) shall, as
                    determined by the Secretary--
                              (i) have the legal authority
                            necessary to carry out the actions
                            described in subparagraph (A);
                              (ii) have a proven track record of
                            successfully assisting agricultural
                            borrowers; and
                              (iii) have the services of a staff
                            with appropriate loan making and
                            servicing expertise.
                      (D) Oversight.--Not less often than annually,
                    on a date determined by the Secretary, an
                    institution that has a loan under this
                    paragraph shall provide to the Secretary such
                    information as the Secretary may require to
                    ensure that the services provided by the
                    institution are serving the purposes of this
                    subsection.
                      (E) Limitation.--The Secretary shall not make
                    more than $10,000,000 in loans under this
                    paragraph in any fiscal year.

               *       *       *       *       *       *       *

      Sec. 316. (a)(1) The Secretary shall make all loans under
    this subtitle upon the full personal liability of the borrower
    and upon such security as the Secretary may prescribe. The
    interest rates on such loans, except for guaranteed loans and
    loans as provided in paragraphs (2) and (3), shall be as
    determined by the Secretary, but not in excess of the current
    average market yield on outstanding marketable obligations of
    the United States with remaining periods to maturity comparable
    to the average maturities of such loans, plus an additional
    charge not to exceed 1 per centum as determined by the
    Secretary, which charge shall be deposited in the Rural
    Development Insurance Fund or the Agricultural Credit Insurance
    Fund, as appropriate, and adjusted to the nearest one-eighth of
    1 per centum. The interest rate on any guaranteed loan made
    under this subtitle shall be such rate as may be agreed upon by
    the borrower and lender, but not in excess of a rate as may be
    determined by the Secretary.
      (2) The interest rate on a microloan to a beginning farmer or
    rancher or veteran farmer or rancher (as defined in section
    2501(e) of the Food, Agriculture, Conservation, and Trade Act
    of 1990 (7 U.S.C. 2279(e)), or any loan (other than a
    guaranteed loan) to a low income, limited resource borrower
    under this subtitle shall [not be--
              [(A) greater than the sum of--
                      [(i) an amount that does not exceed one-half
                    of the current average market yield on
                    outstanding marketable obligations of the
                    United States with maturities of 5 years; and
                      [(ii) an amount not exceeding 1 percent per
                    year, as the Secretary determines is
                    appropriate; or
              [(B) less than 5 percent per year.] be equal to the
            interest rate for direct farm ownership loans under
            this subtitle, not to exceed 5 percent per year.
      (b) Loans made under this subtitle shall be payable in not to
    exceed seven years. The Secretary may consolidate or reschedule
    outstanding loans for payment over a period not to exceed seven
    years (or, in the case of loans for farm operating purposes,
    fifteen years) from the date of such consolidation or
    rescheduling, and the amount of unpaid principal and interest
    of the prior loans so consolidated or rescheduled shall not
    create a new charge against any loan levels authorized by law.
    A new loan may be included in a consolidation. Such new loan
    shall be charged against any loan level authorized by law.
    Except as otherwise provided for farm loans under section 331B
    of this title, the interest rate on such consolidated or
    rescheduled loans, other than guaranteed loans, may be changed
    by the Secretary to a rate not to exceed the rate being charged
    for loans made under this subtitle at the time of the
    consolidation or rescheduling. The interest rate on any
    guaranteed loan under this subtitle that may be consolidated or
    rescheduled for payment shall be such rate as may be agreed
    upon by the borrower and the lender, but not in excess of a
    rate as may be determined by the Secretary.
      (c) Line-of-Credit Loans.--
              (1) In general.--A loan made or guaranteed by the
            Secretary under this subtitle may be in the form of a
            line-of-credit loan.
              (2) Term.--A line-of-credit loan under paragraph (1)
            shall terminate not later than 5 years after the date
            that the loan is made or guaranteed.
              (3) Eligibility.--For purposes of determining
            eligibility for a farm operating loan under this
            subtitle, each year during which a farmer or rancher
            takes an advance or draws on a line-of-credit loan the
            farmer or rancher shall be considered to have received
            an operating loan for 1 year.
              (4) Termination of delinquent loans.--If a borrower
            does not pay an installment on a line-of-credit loan on
            schedule, the borrower may not take an advance or draw
            on the line-of-credit, unless the Secretary determines
            that--
                      (A) the borrower's failure to pay on schedule
                    was due to unusual conditions that the borrower
                    could not control; and
                      (B) the borrower will reduce the line-of-
                    credit balance to the scheduled level at the
                    end of--
                              (i) the production cycle; or
                              (ii) the marketing of the borrower's
                            agricultural products.
              (5) Agricultural commodities.--A line-of-credit loan
            may be used to finance the production or marketing of
            an agricultural commodity that--
                      (A) is eligible for a price support program
                    of the Department of Agriculture; or
                      (B) was eligible for a price support program
                    of the Department of Agriculture on the day
                    before the date of enactment of the Federal
                    Agriculture Improvement and Reform Act of 1996.

    SEC. 319. GRADUATION OF BORROWERS WITH OPERATING LOANS [OR GUARANTEES]
                        TO PRIVATE COMMERCIAL CREDIT.

      The Secretary shall establish a plan, in coordination with
    activities under sections 359, 360, 361, and 362, to encourage
    each borrower with an outstanding loan under this subtitle [or
    with respect to whom there is an outstanding guarantee under
    this subtitle] to graduate to private commercial or other
    sources of credit.

                          Subtitle C--Emergency Loans

      [Sec. 321. (a) The Secretary]

    SEC. 321. ELIGIBILITY FOR LOANS.

      (a) In General.--
              (1) Eligibility requirements.--The Secretary shall
            make and insure loans under this subtitle only to the
            extent and in such amounts as provided in advance in
            appropriation Acts to [(1)] (A) established farmers or
            ranchers (including equine farmers or ranchers), or
            persons engaged in aquaculture, who are citizens of the
            United States and who are (in the case of farm
            ownership loans in accordance with subtitle A) owner-
            operators or operators, or (in the case of loans for a
            purpose under subtitle B) operators of not larger than
            family farms, and [(2)] (B) farm cooperatives, private
            domestic corporations, partnerships, joint operations,
            trusts, or limited liability companies, or other legal
            entities, or such other legal entities as the Secretary
            considers appropriate [(A)] (i) that are engaged
            primarily in farming or ranching (including equine
            farming or ranching) or aquaculture, and [(B)] (ii) in
            which [a majority] at least a 50 percent interest is
            held by individuals who are citizens of the United
            States and who are (in the case of farm ownership loans
            in accordance with subtitle A) owner-operators or
            operators, or (in the case of loans for a purpose under
            subtitle B) operators of not larger than family farms
            (or in the case of such cooperatives, corporations,
            partnerships, joint operations, trusts, or limited
            liability companies, or other legal entities in which
            [a majority] at least a 50 percent interest is held by
            individuals who are related by blood or marriage, as
            defined by the Secretary, such individuals must be
            either owners or operators of not larger than a family
            farm and at least one such individual must be an
            operator of not larger than a family farm), where the
            Secretary finds that the applicants' farming, ranching,
            or aquaculture operations have been substantially
            affected by 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 a major disaster or
            emergency designated by the President under the Robert
            T. Stafford Disaster Relief and Emergency Assistance
            Act (42 U.S.C. 5121 et seq.): Provided, That they have
            experience and resources necessary to assure a
            reasonable prospect for successful operation with the
            assistance of such loan and are not able to obtain
            sufficient credit elsewhere. In addition to the
            foregoing requirements of [this subsection] this
            paragraph, in the case of farm cooperatives, private
            domestic corporations, partnerships, joint operations,
            trusts, limited liability companies, and such other
            legal entities the family farm requirement of the
            preceding sentence shall apply as well to all farms in
            which the entity has an ownership or operator interest
            (in the case of loans for a purpose under subtitle A)
            or an operator interest (in the case of loans for a
            purpose under subtitle B). The Secretary shall accept
            applications from, and make or insure loans pursuant to
            the requirements of this subtitle to, applicants,
            otherwise eligible under this subtitle, that conduct
            farming, ranching, or aquaculture operations in any
            county contiguous to a county where the Secretary has
            found that farming, ranching, or aquaculture operations
            have been substantially affected by 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 a major disaster or emergency designated by the
            President under the Robert T. Stafford Disaster Relief
            and Emergency Assistance Act (42 U.S.C. 5121 et seq.).
            The Secretary shall accept applications for assistance
            under this subtitle from persons affected by such a
            quarantine or natural disaster at any time during the
            eight-month period beginning (A) on the date on which
            the Secretary determines that farming, ranching, or
            aquaculture operations have been substantially affected
            by such quarantine or natural disaster or (B) on the
            date the President makes the major disaster or
            emergency designation with respect to such natural
            disaster, as the case may be. [An entity that is an
            owner-operator or operator described in this subsection
            shall be considered to meet the direct ownership
            requirement imposed under this subsection if at least
            75 percent of the ownership interests of each embedded
            entity of the entity is owned directly or indirectly by
            the individuals that own the family farm.]
              (2) Special rules.--
                      (A) Eligibility of qualified operators.--
                    Qualified operators, as defined by the
                    Secretary, shall be considered to meet the
                    operator requirement of paragraph (1).
                      (B) Eligibility of certain operating-only
                    entities.-- An applicant that is or will become
                    only the operator of farm real estate acquired,
                    improved, or supported with funds under this
                    subtitle shall be considered to meet the owner-
                    operator requirements of paragraph (1) if 1 or
                    more of the individuals who is an owner of the
                    real estate owns at least 50 percent (or such
                    other percentage as the Secretary determines is
                    appropriate) of the applicant.
                      (C) Eligibility of certain embedded
                    entities.--An entity that is an owner-operator
                    described in paragraph (1), or an operator
                    described in subparagraph (B) of this paragraph
                    that is owned, in whole or in part, by 1 or
                    more other entities, shall be considered to
                    meet the direct ownership requirement imposed
                    under paragraph (1) if at least 75 percent of
                    the total ownership interests of the embedded
                    entity, or of the other entities, is owned,
                    directly or indirectly, by qualified operators
                    of the farm acquired, improved, or supported
                    with funds under this subtitle.
      (b) Hazard Insurance Requirement.--
              (1) In general.--After the Secretary makes the
            determination required by paragraph (2), the Secretary
            may not make a loan to a farmer or rancher under this
            subtitle to cover a property loss unless the farmer or
            rancher had hazard insurance that insured the property
            at the time of the loss.
              (2) Determination.--Not later than 180 days after the
            date of enactment of this paragraph, the Secretary
            shall determine the appropriate level of insurance to
            be required under paragraph (1).
              (3) Loans to poultry farmers.--
                      (A) Inability to obtain insurance.--
                              (i) In general.--Notwithstanding any
                            other provision of this subtitle, the
                            Secretary may make a loan to a poultry
                            farmer under this subtitle to cover the
                            loss of a chicken house for which the
                            farmer did not have hazard insurance at
                            the time of the loss, if the farmer--
                                      (I) applied for, but was
                                    unable, to obtain hazard
                                    insurance for the chicken
                                    house;
                                      (II) uses the loan to rebuild
                                    the chicken house in accordance
                                    with industry standards in
                                    effect on the date the farmer
                                    submits an application for the
                                    loan (referred to in this
                                    paragraph as ``current industry
                                    standards'');
                                      (III) obtains, for the term
                                    of the loan, hazard insurance
                                    for the full market value of
                                    the chicken house; and
                                      (IV) meets the other
                                    requirements for the loan under
                                    this subtitle.
                              (ii) Amount.--Subject to the
                            limitation contained in section
                            324(a)(2), the amount of a loan made to
                            a poultry farmer under clause (i) shall
                            be an amount that will allow the farmer
                            to rebuild the chicken house in
                            accordance with current industry
                            standards.
                      (B) Loans to comply with current industry
                    standards.--
                              (i) In general.--Notwithstanding any
                            other provision of this subtitle, the
                            Secretary may make a loan to a poultry
                            farmer under this subtitle to cover the
                            loss of a chicken house for which the
                            farmer had hazard insurance at the time
                            of the loss, if--
                                      (I) the amount of the hazard
                                    insurance is less than the cost
                                    of rebuilding the chicken house
                                    in accordance with current
                                    industry standards;
                                      (II) the farmer uses the loan
                                    to rebuild the chicken house in
                                    accordance with current
                                    industry standards;
                                      (III) the farmer obtains, for
                                    the term of the loan, hazard
                                    insurance for the full market
                                    value of the chicken house; and
                                      (IV) the farmer meets the
                                    other requirements for the loan
                                    under this subtitle.
                              (ii) Amount.--Subject to the
                            limitation contained in section
                            324(a)(2), the amount of a loan made to
                            a poultry farmer under clause (i) shall
                            be the difference between--
                                      (I) the amount of the hazard
                                    insurance obtained by the
                                    farmer; and
                                      (II) the cost of rebuilding
                                    the chicken house in accordance
                                    with current industry
                                    standards.
      (c) The Secretary shall conduct the emergency loan program
    under this subtitle in a manner that will foster and encourage
    the family farm system of agriculture, consistent with the
    reaffirmation of policy and declaration of the intent of
    Congress contained in section 102(a) of the Food and
    Agriculture Act of 1977.
      (d) For the purposes of this subtitle--
              (1) ``aquaculture'' means the husbandry of aquatic
            organisms under a controlled or selected environment;
            and
              (2) ``able to obtain sufficient credit elsewhere''
            means able to obtain sufficient credit elsewhere to
            finance the applicant's actual needs at reasonable
            rates and terms, taking into consideration prevailing
            private and cooperative rates and terms in the
            community in or near which the applicant resides for
            loans for similar purposes and periods of time.

               *       *       *       *       *       *       *

                     Subtitle D--Administrative Provisions

      Sec. 331. (a) In accordance with section 359, for purposes of
    this title, and for the administration of assets under the
    jurisdiction of the Secretary of Agriculture pursuant to the
    [Farmers Home Administration] Farm Service Agency Act of 1946,
    as amended, the Bankhead-Jones Farm Tenant Act, as amended, the
    Act of August 28, 1937, as amended, the Act of April 6, 1949,
    as amended, the Act of August 31, 1954, as amended, and the
    powers and duties of the Secretary under any other Act
    authorizing agricultural credit, the Secretary may assign and
    transfer such powers, duties, and assets to such officers or
    agencies of the Department of Agriculture as the Secretary
    considers appropriate.
      (b) The Secretary may--
              (1) administer his powers and duties through such
            national, area, State, or local offices and employees
            in the United States as he determines to be necessary
            and may authorize an office to serve the area composed
            of two or more States if he determines that the volume
            of business in the area is not sufficient to justify
            separate State offices[, and until January 1, 1975,
            make contracts for services incident to making,
            insuring, collecting, and servicing loans and property
            as determined by the Secretary to be necessary for
            carrying out the purposes of this title; (and the
            Secretary shall prior to June 30, 1974, report to the
            Congress through the President on the experience in
            using such contracts, together with recommendations for
            such legislation as he may see fit)];
              (2) accept and utilize voluntary and uncompensated
            services, and, with the consent of the agency
            concerned, utilize the officers, employees, equipment,
            and information of any agency of the Federal
            Government, or of any State, territory, or political
            subdivision;
              (3) within the limits of appropriations made
            therefor, make necessary expenditures for purchase or
            hire of passenger vehicles, and such other facilities
            and services as he may from time to time find necessary
            for the proper administration of this title;
              (4) compromise, adjust, reduce, or charge-off debts
            or claims (including debts and claims arising from loan
            guarantees), and adjust, modify, subordinate, or
            release the terms of security instruments, leases,
            contracts, and agreements entered into or administered
            by the [Consolidated] Farm Service Agency, Rural
            Utilities Service, Rural Housing Service, Rural
            Business-Cooperative Service, or a successor agency, or
            the Rural Development Administration, except for
            activities under the Housing Act of 1949. In the case
            of a security instrument entered into under the Rural
            Electrification Act of 1936 (7 U.S.C. 901 et seq.), the
            Secretary shall notify the Attorney General of the
            intent of the Secretary to exercise the authority of
            the Secretary under this paragraph. The Secretary may
            not require liquidation of property securing any farmer
            program loan or acceleration of any payment required
            under any farmer program loan as a prerequisite to
            initiating an action authorized under this subsection.
            After consultation with a local or area county
            committee, the Secretary may release borrowers or
            others obligated on a debt, except for debt incurred
            under the Housing Act of 1949, from personal liability
            with or without payment of any consideration at the
            time of the compromise, adjustment, reduction, or
            charge-off of any claim, except that no compromise,
            adjustment, reduction, or charge-off of any claim may
            be made or carried out after the claim has been
            referred to the Attorney General, unless the Attorney
            General approves;
              (5) except for activities conducted under the Housing
            Act of 1949, collect all claims and obligations
            administered by the [Farmers Home Administration] Farm
            Service Agency and Rural Development, or under any
            mortgage, lease, contract, or agreement entered into or
            administered by the [Farmers Home Administration] Farm
            Service Agency and Rural Development and, if in his
            judgment necessary and advisable, pursue the same to
            final collection in any court having jurisdiction;
              (6) release mortgage and other contract liens if it
            appears that they have no present or prospective value
            or that their enforcement likely would be ineffectual
            or uneconomical;
              (7) obtain fidelity bonds protecting the Government
            against fraud and dishonesty of officers and employees
            of the [Farmers Home Administration] Farm Service
            Agency and Rural Development in lieu of faithful
            performance of duties bonds under section 14, title 6,
            United States Code, and regulations issued pursuant
            thereto, but otherwise in accordance with the
            provisions thereof;
              (8) consent to (A) long-term leases of facilities
            financed under this title notwithstanding the failure
            of the lessee to meet any of the requirements of this
            title if such long-term leases are necessary to ensure
            the continuation of services for which financing was
            extended to the lessor, and (B) the transfer of
            property securing any loan or financed by any loan or
            grant made, insured, or held by the Secretary under
            this title, or the provisions of any other law
            administered by the [Rural Development Administration
            or by the Farmers Home Administration] Farm Service
            Agency and Rural Development, upon such terms as he
            deems necessary to carry out the purpose of the loan or
            grant or to protect the financial interest of the
            Government, and shall document the consent of the
            Secretary for the transfer of the property of a
            borrower in the file of the borrower; and
              (9) notwithstanding that an area ceases, or has
            ceased, to be ``rural'', in a ``rural area'', or an
            eligible area, make loans and grants, and approve
            transfers and assumptions, under this title on the same
            basis as though the area still was rural in connection
            with property securing any loan made, insured, or held
            by the Secretary under this title or in connection with
            any property held by the Secretary under this title.
      (c) The Secretary may use for the prosecution or defense of
    any claim or obligation described in subsection (b)(5) the
    Attorney General, the General Counsel of the Department of
    Agriculture, or a private attorney who has entered into a
    contract with the Secretary.
      (d) Rural College Coordinated Strategy.--
              (1) In general.--The Secretary shall develop a
            coordinated strategy across the relevant programs
            within the Rural Development mission areas to serve the
            specific, local needs of rural communities when making
            investments in rural community colleges and technical
            colleges through other authorities in effect on the
            date of enactment of this subsection.
              (2) Consultation.--In developing a coordinated
            strategy, the Secretary shall consult with groups
            representing rural-serving community colleges and
            technical colleges to coordinate critical investments
            in rural community colleges and technical colleges
            involved in workforce training.
              (3) Administration.--Nothing in this subsection
            provides a priority for funding under authorities in
            effect on the date of enactment of this subsection.
              (4) Use.--The Secretary shall use the coordinated
            strategy and information developed for the strategy to
            more effectively serve rural communities with respect
            to investments in community colleges and technical
            colleges.
      (e)(1) Except as provided in paragraph (2), the Secretary may
    allow a recipient of a grant, loan, or loan guarantee provided
    by the Office of Rural Development under this title to use not
    more than 10 percent of the amount so provided--
              (A) for any activity for which assistance may be
            provided under section 601 of the Rural Electrification
            Act of 1936; or
              (B) to construct other broadband infrastructure.
      (2) Paragraph (1) of this subsection shall not apply to a
    recipient who is seeking to provide retail broadband service in
    any area where retail broadband service is available at the
    minimum broadband speeds, as defined under section 601(e) of
    the Rural Electrification Act of 1936.
      (3) The Secretary shall not provide funding under paragraph
    (1) if the funding would result in competitive harm to any
    grant, loan, or loan guarantee provided under the Rural
    Electrification Act of 1936.
      (f) Access to Information to Verify Income for Participants
    in Certain Rural Housing Programs.--The Secretary and the
    designees of the Secretary are hereby granted the same access
    to information and subject to the same requirements applicable
    to the Secretary of Housing and Urban Development as provided
    in section 453 of the Social Security Act (42 U.S.C. 653) and
    section 6103(l)(7)(D)(ix) of the Internal Revenue Code of 1986
    (26 U.S.C. 6103(l)(7)(D)(ix)) to verify income for individuals
    participating in sections 502, 504, 521, and 542 of the Housing
    Act of 1949 (42 U.S.C. 1472, 1474, 1490a, and 1490r),
    notwithstanding section 453(l) of the Social Security Act.
      Sec. 331A. (a) In addition to any other authority that the
    Secretary may have to defer principal and interest and forego
    foreclosure, the Secretary may permit, at the request of the
    borrower, the deferral of principal and interest on any
    outstanding loan made, insured, or held by the Secretary under
    this title, or under the provisions of any other law
    administered by the [Farmers Home Administration or by the
    Rural Development Administration] Farm Service Agency or by
    Rural Development, and may forego foreclosure of any such loan,
    for such period as the Secretary deems necessary upon a showing
    by the borrower that due to circumstances beyond the borrower's
    control, the borrower is temporarily unable to continue making
    payments of such principal and interest when due without unduly
    impairing the standard of living of the borrower. The Secretary
    may permit interest that accrues during the deferral period on
    any loan deferred under this section to bear no interest during
    or after such period: Provided, That if the security instrument
    securing such loan is foreclosed such interest as is included
    in the purchase price at such foreclosure shall become part of
    the principal and draw interest from the date of foreclosure at
    the rate prescribed by law.
      (b) Moratorium.--
              (1) In general.--Subject to the other provisions of
            this subsection, effective beginning on the date of the
            enactment of this subsection, there shall be in effect
            a moratorium, with respect to farmer program loans made
            under subtitle A, B, or C, on all acceleration and
            foreclosure proceedings instituted by the Department of
            Agriculture against any farmer or rancher who--
                      (A) has pending against the Department a
                    claim of program discrimination that is
                    accepted by the Department as valid; or
                      (B) files a claim of program discrimination
                    that is accepted by the Department as valid.
              (2) Waiver of interest and offsets.--During the
            period of the moratorium, the Secretary shall waive the
            accrual of interest and offsets on all farmer program
            loans made under subtitle A, B, or C for which loan
            acceleration or foreclosure proceedings have been
            suspended under paragraph (1).
              (3) Termination of moratorium.--The moratorium shall
            terminate with respect to a claim of discrimination by
            a farmer or rancher on the earlier of--
                      (A) the date the Secretary resolves the
                    claim; or
                      (B) if the farmer or rancher appeals the
                    decision of the Secretary on the claim to a
                    court of competent jurisdiction, the date that
                    the court renders a final decision on the
                    claim.
              (4) Failure to prevail.--If a farmer or rancher does
            not prevail on a claim of discrimination described in
            paragraph (1), the farmer or rancher shall be liable
            for any interest and offsets that accrued during the
            period that loan acceleration or foreclosure
            proceedings have been suspended under paragraph (1).
      Sec. 333. (a)  In General._ In connection with loans made or
    insured under this title, the Secretary shall --
              (1) require the applicant (A) to certify in writing,
            and the Secretary shall determine, that he is unable to
            obtain sufficient credit elsewhere to finance his
            actual needs at reasonable rates and terms, taking into
            consideration prevailing private and cooperative rates
            and terms in the community in or near which the
            applicant resides for loans for similar purposes and
            periods of time, and (B) to furnish an appropriate
            written financial statement;
              (2) except with respect to a loan under section 306,
            310B, or 314, require--
                      (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;
              (3) except for guaranteed loans, require an agreement
            by the borrower that if at any time it shall appear to
            the Secretary that the borrower may be able to obtain a
            loan from a production credit association, a Federal
            land bank, or other responsible cooperative or private
            credit source (or, in the case of a borrower under
            section 310D of this title, the borrower may be able to
            obtain a loan under section 302 of this title), at
            reasonable rates and terms for loans for similar
            purposes and periods of time, the borrower will, upon
            request by the Secretary, apply for and accept such
            loan in sufficient amount to repay the Secretary or the
            insured lender, or both, and to pay for any stock
            necessary to be purchased in a cooperative lending
            agency in connection with such loan;
              (4) require such provision for supervision of the
            borrower's operations as the Secretary shall deem
            necessary to achieve the objectives of the loan and
            protect the interests of the United States;
              (5) require the application of a person who is a
            veteran of any war, as defined in section 101(12) of
            title 38, United States Code, for a loan under subtitle
            A or B to be given preference over a similar
            application from a person who is not a veteran of any
            war, if the applications are on file in a county or
            area office at the same time; and
              (6) in the case of water and waste disposal direct
            and guaranteed loans provided under section 306,
            encourage, to the maximum extent practicable, private
            or cooperative lenders to finance rural water and waste
            disposal facilities by--
                      (A) maximizing the use of loan guarantees to
                    finance eligible projects in rural communities
                    in which the population exceeds 5,500;
                      (B) maximizing the use of direct loans to
                    finance eligible projects in rural communities
                    if the impact on ratepayers will be material
                    when compared to financing with a loan
                    guarantee;
                      (C) establishing and applying a materiality
                    standard when determining the difference in
                    impact on ratepayers between a direct loan and
                    a loan guarantee;
                      (D) in the case of projects that require
                    interim financing in excess of $500,000,
                    requiring that the projects initially seek the
                    financing from private or cooperative lenders;
                    and
                      (E) determining if an existing direct loan
                    borrower can refinance with a private or
                    cooperative lender, including with a loan
                    guarantee, prior to providing a new direct
                    loan[; and].
              [(7) in the case of an insured or guaranteed loan
            issued or modified under section 306(a), charge and
            collect from the lender fees in such amounts as to
            bring down the costs of subsidies for the insured or
            guaranteed loan, except that the fees shall not act as
            a bar to participation in the programs nor be
            inconsistent with current practices in the
            marketplace.]
      (b) Fees.--
              (1) Initial guarantee fee.--The Secretary may assess
            an initial guarantee fee for any insured or guaranteed
            loan issued or modified under section 306(a) in an
            amount that does not exceed 3 percent of the guaranteed
            principal portion of the loan.
              (2) Periodic retention fee.--The Secretary may assess
            a periodic retention fee for any insured or guaranteed
            loan issued or modified under section 306(a) in an
            amount that does not exceed 0.75 percent of the
            outstanding principal of the guaranteed loan.
              (3) Disclosure.--In altering any fee charged for any
            insured or guaranteed loan issued or modified under
            section 306(a), the Secretary, not less than 30 days in
            advance of any fee change, shall provide a public
            disclosure, of the financial data, economic and
            behavioral assumptions, calculations, and other factors
            used to determine the new fee rates.
      Sec. 333A. (a)(1) The Secretary shall approve or disapprove
    an application for a loan or loan guarantee made under this
    title, and notify the applicant of such action, not later than
    60 days after the Secretary has received a complete application
    for such loan or loan guarantee.
      (2)(A) If an application for a loan or loan guarantee under
    this title (other than under subtitle B) is incomplete, the
    Secretary shall inform the applicant of the reasons such
    application is incomplete not later than 20 days after the
    Secretary has received such application.
      (B)(i) Not later than 10 calendar days after the Secretary
    receives an application for an operating loan or loan guarantee
    under subtitle B, the Secretary shall notify the applicant of
    any information required before a decision may be made on the
    application. On receipt of an application, the Secretary shall
    request from other parties such information as may be needed in
    connection with the application.
      (ii) Not later than 15 calendar days after the date an agency
    of the Department of Agriculture receives a request for
    information made pursuant to clause (i), the agency shall
    provide the Secretary with the requested information.
      (iii) If, not later than 20 calendar days after the date a
    request is made pursuant to clause (i) with respect to an
    application, the Secretary has not received the information
    requested, the Secretary shall notify the applicant and the
    [district office] District Director of the [Farmers Home
    Administration] Farm Service Agency, in writing, of the
    outstanding information.
      (iv) A county office shall notify the [district office]
    District Director of the [Farmers Home Administration] Farm
    Service Agency of each application for an operating loan or
    loan guarantee under subtitle B that is pending more than 45
    days after receipt, and the reasons the application is pending.
      (v) A [district office] District Director that receives a
    notice provided under clause (iv) with respect to an
    application shall immediately take steps to ensure that final
    action is taken on the application not later than 15 days after
    the date of the receipt of the notice.
      (vi) The [district office] District Director shall report to
    the State office of the [Farmers Home Administration] Farm
    Service Agency on each application for an operating loan or
    loan guarantee under subtitle B that is pending more than 45
    days after receipt [by the county committee] of the
    application, and the reasons the application is pending.
      (vii) Each month, the Secretary shall notify the Committee on
    Agriculture of the House of Representatives and the Committee
    on Agriculture, Nutrition, and Forestry of the Senate, on a
    State-by-State basis, as to each application for an operating
    loan or loan guarantee under subtitle B on which final action
    had not been taken within 60 calendar days after receipt by the
    Secretary, and the reasons final action had not been taken.
      (3) If an application for a loan or loan guarantee under this
    title is disapproved by the Secretary, the Secretary shall
    state the reasons for the disapproval in the notice required
    under paragraph (1).
      (4)(A) Notwithstanding paragraph (1), each application for a
    loan or loan guarantee under section 310B(a), or for a loan
    under section 306(a), that is to be disapproved by the
    Secretary solely because the Secretary lacks the necessary
    amount of funds to make the loan or guarantee shall not be
    disapproved but shall be placed in pending status.
      (B) The Secretary shall retain the pending application and
    reconsider the application beginning on the date that
    sufficient funds become available.
      (C) Not later than 60 days after funds become available
    regarding each pending application, the Secretary shall notify
    the applicant of the approval or disapproval of funding for the
    application.
      (b)(1) Except as provided in paragraph (2), if an application
    for an insured loan under this title is approved by the
    Secretary, the Secretary shall provide the loan proceeds to the
    applicant not later than 15 days (or such longer period as the
    applicant may approve) after the application for the loan is
    approved by the Secretary.
      (2) If the Secretary is unable to provide the loan proceeds
    to the applicant within such 15-day period because sufficient
    funds are not available to the Secretary for such purpose, the
    Secretary shall provide the loan proceeds to the applicant as
    soon as practicable (but in no event later than 15 days unless
    the applicant agrees to a longer period) after sufficient funds
    for such purpose become available to the Secretary.
      (c) If an application for a loan or loan guarantee under this
    title is disapproved by the Secretary, but such action is
    subsequently reversed or revised as the result of an appeal
    within the Department of Agriculture or to the courts of the
    United States and the application is returned to the Secretary
    for further consideration, the Secretary shall act on the
    application and provide the applicant with notice of the action
    within 15 days after return of the application to the
    Secretary.
      (d) In carrying out the approved lender program established
    by exhibit A to subpart B of part 1980 of title 7, Code of
    Federal Regulations, the Secretary shall ensure that each
    request of a lending institution for designation as an approved
    lender under such program is reviewed, and a decision made on
    the application, not later than 15 days after the Secretary has
    received a complete application for such designation.
      (e)(1) As soon as practicable after the date of enactment of
    the Food Security Act of 1985, the Secretary shall take such
    steps as are necessary to make personnel, including the payment
    of overtime for such personnel, and other resources of the
    Department of Agriculture available to the [Farmers Home
    Administration] Farm Service Agency as are sufficient to enable
    the [Farmers Home Administration] Farm Service Agency to
    expeditiously process loan applications that are submitted by
    farmers and ranchers.
      (2) In carrying out paragraph (1), the Secretary may use any
    authority of law provided to the Secretary, including--
              (A) the Agricultural Credit Insurance Fund
            established under section 309; and
              (B) the employment procedures used in connection with
            the emergency loan program established under subtitle
            C.
      (f)(1) As used in this subsection:
              (A) The term ``approved lender'' means a lender
            approved prior to the date of enactment of this
            subsection by the Secretary under the approved lender
            program established by exhibit A to subpart B of part
            1980 of title 7, Code of Federal Regulations (as in
            effect on January 1, 1991), or a lender certified under
            section 339.
              (B) The term ``seasoned direct loan borrower'' means
            a borrower receiving a direct loan under this title who
            has been classified as ``commercial'' or ``standard''
            under subpart W of part 2006 of the Instruction Manual
            (as in effect on January 1, 1991).
      (2) The Secretary, or a contracting third party, shall
    annually review under section 360 the loans of each seasoned
    loan borrower. If, based on the review, it is determined that a
    borrower would be able to obtain a loan, guaranteed by the
    Secretary, from a commercial or cooperative lender at
    reasonable rates and terms for loans for similar purposes and
    periods of time, the Secretary shall assist the borrower in
    applying for the commercial or cooperative loan.
      (3) In accordance with section 362, the Secretary shall
    prepare a prospectus on each seasoned direct loan borrower
    determined eligible to obtain a guaranteed loan. The prospectus
    shall contain a description of the amounts of loan guarantee
    and interest assistance that the Secretary will provide to the
    seasoned direct loan borrower to enable the seasoned direct
    loan borrower to carry out a financially viable farming plan if
    a guaranteed loan is made.
              (4) Verification.--
                      (A) In general.--The Secretary shall provide
                    a prospectus of a seasoned direct loan borrower
                    to each approved lender whose lending area
                    includes the location of the seasoned direct
                    loan borrower.
                      (B) Notification.--The Secretary shall notify
                    each borrower of a loan that a prospectus has
                    been provided to a lender under subparagraph
                    (A).
                      (C) Credit extended.--If the Secretary
                    receives an offer from an approved lender to
                    extend credit to the seasoned direct loan
                    borrower under terms and conditions contained
                    in the prospectus, the seasoned direct loan
                    borrower shall not be eligible for an insured
                    loan from the Secretary under subtitle A or B,
                    except as otherwise provided in this
                    subsection.
      (5) If the Secretary is unable to provide loan guarantees
    and, if necessary, interest assistance to the seasoned direct
    loan borrower under this subsection in amounts sufficient to
    enable the seasoned direct loan borrower to borrow from
    commercial sources the amount required to carry out a
    financially viable farming plan, or if the Secretary does not
    receive an offer from an approved lender to extend credit to a
    seasoned direct loan borrower under the terms and conditions
    contained in the prospectus, the Secretary shall make an
    insured loan to the seasoned direct loan borrower under
    subtitle A or B, whichever is applicable.
      (6) To the extent necessary for the borrower to obtain a
    loan, guaranteed by the Secretary, from a commercial or
    cooperative lender, the Secretary shall provide interest rate
    reductions as provided for under section 351.
      (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)(2)(A) 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.]
              (1) Real estate and operating guaranteed loans.--
                      (A) In general.--The Secretary shall provide
                    to lenders a short, simplified application form
                    for real estate and operating guaranteed loans
                    under this title, for loans of not more than
                    $1,000,000.
                      (B) Notice.--Within 5 business days after
                    receipt of a complete application to guarantee
                    a farm ownership or operating loan that meets
                    the requirements under subparagraph (A)
                    originated by a Preferred Certified Lender or
                    Certified Lender, the Secretary shall notify
                    the lender as to whether the application is
                    approved or disapproved.
                      (C) Maximum guarantee.--Notwithstanding any
                    other provision of this Act, the percentage of
                    the principal amount of a loan which may be
                    guaranteed pursuant to this paragraph shall not
                    exceed--
                              (i) 90 percent, in the case of a loan
                            not exceeding $125,000;
                              (ii) 75 percent, in the case of a
                            loan of more than $125,000 and not more
                            than $500,000; or
                              (iii) 50 percent, in the case of a
                            loan of more than $500,000 and not more
                            than $1,000,000.
              (2) Business and industry guaranteed loans to assist
            rural entities.--
                      (A) In general.--The Secretary shall develop
                    an application process that accelerates, to the
                    maximum extent practicable, the processing of
                    applications for business and industry
                    guaranteed loans to assist rural entities, as
                    described under section 310B(a)(2)(A), for
                    loans not exceeding $400,000.
                      (B) Exception.--The accelerated application
                    process, as provided under subparagraph (A),
                    shall apply to loans not exceeding $600,000 if
                    there is not a significant increased risk of a
                    default on the loan, as determined by the
                    Secretary.
              [(2)] (3) 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)] (4) 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.
      [(h) Simplified Application Forms.--Except as provided in
    subsection (g)(2), the Secretary shall, to the maximum extent
    practicable, develop a simplified application process,
    including a single page application if practicable, for grants
    and relending authorized under sections 306, 306C, 306D, 306E,
    310B(b), 310B(c), 310B(e), 310H, 379B, and 379E.]

    SEC. 333B. BEGINNING FARMER AND RANCHER INDIVIDUAL DEVELOPMENT ACCOUNTS
                        PILOT PROGRAM.

      (a) Definitions.--In this section:
              (1) Demonstration program.--The term ``demonstration
            program'' means a demonstration program carried out by
            a qualified entity under the pilot program established
            in subsection (b)(1).
              (2) Eligible participant.--The term ``eligible
            participant'' means a qualified beginning farmer or
            rancher that--
                      (A) lacks significant financial resources or
                    assets; and
                      (B) has an income that is less than--
                              (i) 80 percent of the median income
                            of the State in which the farmer or
                            rancher resides; or
                              (ii) 200 percent of the most recent
                            annual Federal Poverty Income
                            Guidelines published by the Department
                            of Health and Human Services for the
                            State.
              (3) Individual development account.--The term
            ``individual development account'' means a savings
            account described in subsection (b)(4)(A).
              (4) Qualified entity.--
                      (A) In general.--The term ``qualified
                    entity'' means--
                              (i) 1 or more organizations--
                                      (I) described in section
                                    501(c)(3) of the Internal
                                    Revenue Code of 1986; and
                                      (II) exempt from taxation
                                    under section 501(a) of such
                                    Code; or
                              (ii) a State, local, or tribal
                            government submitting an application
                            jointly with an organization described
                            in clause (i).
                      (B) No prohibition on collaboration.--An
                    organization described in subparagraph (A)(i)
                    may collaborate with a financial institution or
                    for-profit community development corporation to
                    carry out the purposes of this section.
      (b) Pilot Program.--
              (1) In general.--The Secretary shall establish a
            pilot program to be known as the ``New Farmer
            Individual Development Accounts Pilot Program'' under
            which the Secretary shall work through qualified
            entities to establish demonstration programs--
                      (A) of at least 5 years in duration; and
                      (B) in at least 15 States.
              (2) Coordination.--The Secretary shall operate the
            pilot program through, and in coordination with the
            farm loan programs of, the Farm Service Agency.
              (3) Reserve funds.--
                      (A) In general.--A qualified entity carrying
                    out a demonstration program under this section
                    shall establish a reserve fund consisting of a
                    non-Federal match of 50 percent of the total
                    amount of the grant awarded to the
                    demonstration program under this section.
                      (B) Federal funds.--After the qualified
                    entity has deposited the non-Federal matching
                    funds described in subparagraph (A) in the
                    reserve fund, the Secretary shall provide the
                    total amount of the grant awarded under this
                    section to the demonstration program for
                    deposit in the reserve fund.
                      (C) Use of funds.--Of the funds deposited
                    under subparagraph (B) in the reserve fund
                    established for a demonstration program, the
                    qualified entity carrying out the demonstration
                    program--
                              (i) may use up to 10 percent for
                            administrative expenses; and
                              (ii) shall use the remainder in
                            making matching awards described in
                            paragraph (4)(B)(ii)(I).
                      (D) Interest.--Any interest earned on amounts
                    in a reserve fund established under
                    subparagraph (A) may be used by the qualified
                    entity as additional matching funds for, or to
                    administer, the demonstration program.
                      (E) Guidance.--The Secretary shall issue
                    guidance regarding the investment requirements
                    of reserve funds established under this
                    paragraph.
                      (F) Reversion.--On the date on which all
                    funds remaining in any individual development
                    account established by a qualified entity have
                    reverted under paragraph (5)(B)(ii) to the
                    reserve fund established by the qualified
                    entity, there shall revert to the Treasury of
                    the United States a percentage of the amount
                    (if any) in the reserve fund equal to--
                              (i) the amount of Federal funds
                            deposited in the reserve fund under
                            subparagraph (B) that were not used for
                            administrative expenses; divided by
                              (ii) the total amount of funds
                            deposited in the reserve fund.
              (4) Individual development accounts.--
                      (A) In general.--A qualified entity receiving
                    a grant under this section shall establish and
                    administer individual development accounts for
                    eligible participants.
                      (B) Contract requirements.--To be eligible to
                    receive funds under this section from a
                    qualified entity, an eligible participant shall
                    enter into a contract with only 1 qualified
                    entity under which--
                              (i) the eligible participant agrees--
                                      (I) to deposit a certain
                                    amount of funds of the eligible
                                    participant in a personal
                                    savings account, as prescribed
                                    by the contractual agreement
                                    between the eligible
                                    participant and the qualified
                                    entity;
                                      (II) to use the funds
                                    described in subclause (I) only
                                    for 1 or more eligible
                                    expenditures described in
                                    paragraph (5)(A); and
                                      (III) to complete financial
                                    training; and
                              (ii) the qualified entity agrees--
                                      (I) to deposit, not later
                                    than 1 month after an amount is
                                    deposited pursuant to clause
                                    (i)(I), at least a 100-percent,
                                    and up to a 200-percent, match
                                    of that amount into the
                                    individual development account
                                    established for the eligible
                                    participant; and
                                      (II) with uses of funds
                                    proposed by the eligible
                                    participant.
                      (C) Limitation.--
                              (i) In general.--A qualified entity
                            administering a demonstration program
                            under this section may provide not more
                            than $6,000 for each fiscal year in
                            matching funds to the individual
                            development account established by the
                            qualified entity for an eligible
                            participant.
                              (ii) Treatment of amount.--An amount
                            provided under clause (i) shall not be
                            considered to be a gift or loan for
                            mortgage purposes.
              (5) Eligible expenditures.--
                      (A) In general.--An eligible expenditure
                    described in this subparagraph is an
                    expenditure--
                              (i) to purchase farmland or make a
                            down payment on an accepted purchase
                            offer for farmland;
                              (ii) to make mortgage payments on
                            farmland purchased pursuant to clause
                            (i), for up to 180 days after the date
                            of the purchase;
                              (iii) to purchase breeding stock,
                            fruit or nut trees, or trees to harvest
                            for timber; and
                              (iv) for other similar expenditures,
                            as determined by the Secretary.
                      (B) Timing.--
                              (i) In general.--An eligible
                            participant may make an eligible
                            expenditure at any time during the 2-
                            year period beginning on the date on
                            which the last matching funds are
                            provided under paragraph (4)(B)(ii)(I)
                            to the individual development account
                            established for the eligible
                            participant.
                              (ii) Unexpended funds.--At the end of
                            the period described in clause (i), any
                            funds remaining in an individual
                            development account established for an
                            eligible participant shall revert to
                            the reserve fund of the demonstration
                            program under which the account was
                            established.
      (c) Applications.--
              (1) In general.--A qualified entity that seeks to
            carry out a demonstration program under this section
            may submit to the Secretary an application at such
            time, in such form, and containing such information as
            the Secretary may prescribe.
              (2) Criteria.--In considering whether to approve an
            application to carry out a demonstration program under
            this section, the Secretary shall assess--
                      (A) the degree to which the demonstration
                    program described in the application is likely
                    to aid eligible participants in successfully
                    pursuing new farming opportunities;
                      (B) the experience and ability of the
                    qualified entity to responsibly administer the
                    demonstration program;
                      (C) the experience and ability of the
                    qualified entity in recruiting, educating, and
                    assisting eligible participants to increase
                    economic independence and pursue or advance
                    farming opportunities;
                      (D) the aggregate amount of direct funds from
                    non-Federal public sector and private sources
                    that are formally committed to the
                    demonstration program as matching
                    contributions;
                      (E) the adequacy of the plan of the qualified
                    entity to provide information relevant to an
                    evaluation of the demonstration program; and
                      (F) such other factors as the Secretary
                    considers to be appropriate.
              (3) Preferences.--In considering an application to
            conduct a demonstration program under this section, the
            Secretary shall give preference to an application from
            a qualified entity that demonstrates--
                      (A) a track record of serving clients
                    targeted by the program, including, as
                    appropriate, socially disadvantaged farmers or
                    ranchers (as defined in section 355(e)(2)); and
                      (B) expertise in dealing with financial
                    management aspects of farming.
              (4) Approval.--Not later than 1 year after the date
            of enactment of this section, in accordance with this
            section, the Secretary shall, on a competitive basis,
            approve such applications to conduct demonstration
            programs as the Secretary considers appropriate.
              (5) Term of authority.--If the Secretary approves an
            application to carry out a demonstration program, the
            Secretary shall authorize the applicant to carry out
            the project for a period of 5 years, plus an additional
            2 years to make eligible expenditures in accordance
            with subsection (b)(5)(B).
      (d) Grant Authority.--
              (1) In general.--The Secretary shall make a grant to
            a qualified entity authorized to carry out a
            demonstration program under this section.
              (2) Maximum amount of grants.--The aggregate amount
            of grant funds provided to a demonstration program
            carried out under this section shall not exceed
            $250,000.
              (3) Timing of grant payments.--The Secretary shall
            pay the amounts awarded under a grant made under this
            section--
                      (A) on the awarding of the grant; or
                      (B) pursuant to such payment plan as the
                    qualified entity may specify.
      (e) Reports.--
              (1) Annual progress reports.--
                      (A) In general.--Not later than 60 days after
                    the end of the calendar year in which the
                    Secretary authorizes a qualified entity to
                    carry out a demonstration program under this
                    section, and annually thereafter until the
                    conclusion of the demonstration program, the
                    qualified entity shall prepare an annual report
                    that includes, for the period covered by the
                    report--
                              (i) an evaluation of the progress of
                            the demonstration program;
                              (ii) information about the
                            demonstration program, including the
                            eligible participants and the
                            individual development accounts that
                            have been established; and
                              (iii) such other information as the
                            Secretary may require.
                      (B) Submission of reports.--A qualified
                    entity shall submit each report required under
                    subparagraph (A) to the Secretary.
              (2) Reports by the secretary.--Not later than 1 year
            after the date on which all demonstration programs
            under this section are concluded, the Secretary shall
            submit to Congress a final report that describes the
            results and findings of all reports and evaluations
            carried out under this section.
      (f) Annual Review.--The Secretary may conduct an annual
    review of the financial records of a qualified entity--
              (1) to assess the financial soundness of the
            qualified entity; and
              (2) to determine the use of grant funds made
            available to the qualified entity under this section.
      (g) Regulations.--In carrying out this section, the Secretary
    may promulgate regulations to ensure that the program includes
    provisions for--
              (1) the termination of demonstration programs;
              (2) control of the reserve funds in the case of such
            a termination;
              (3) transfer of demonstration programs to other
            qualified entities; and
              (4) remissions from a reserve fund to the Secretary
            in a case in which a demonstration program is
            terminated without transfer to a new qualified entity.
      (h) Authorization of Appropriations.--There is authorized to
    be appropriated to carry out this section $5,000,000 for each
    of fiscal years 2008 through [2023] 2031.

               *       *       *       *       *       *       *

    SEC. 333D. FARMER LOAN PILOT PROJECTS.

      (a) In General.--The Secretary may conduct pilot projects of
    limited scope and duration [that are consistent with subtitle A
    through this subtitle] to evaluate processes and techniques
    that may improve the efficiency and effectiveness of the
    programs carried out under subtitle A through this subtitle.
      (b) Notification.--The Secretary shall--
              (1) not less than 60 days before the date on which
            the Secretary initiates a pilot project under
            subsection (a), submit notice of the proposed pilot
            project to the Committee on Agriculture of the House of
            Representatives and the Committee on Agriculture,
            Nutrition, and Forestry of the Senate; and
              (2) consider any recommendations or feedback provided
            to the Secretary in response to the notice provided
            under paragraph (1).

    SEC. 333E. EXPEDITED APPROVAL PILOT PROGRAM.

      (a) In General.--Beginning not later than 1 year after the
    date of the enactment of this section, the Secretary shall
    carry out a pilot program to establish an expedited
    qualification and approval process for borrowers seeking--
              (1) a direct farm ownership loan under this Act; or
              (2) a guaranteed farm ownership loan under this Act
            that is serviced by a Preferred Certified Lender under
            section 339(d) and provided to a creditworthy borrower,
            as determined by the Preferred Certified Lender.
      (b) Loan Assessments.--In carrying out this section, the
    Secretary shall consider streamlining the process for making--
              (1) determinations necessary to make the
            certifications and assessments referred to in section
            339(c)(5); and
              (2) determinations under section 360(b).
      (c) Rule of Interpretation.--Except as otherwise provided in
    subsections (a) and (b), this section shall not be interpreted
    to authorize the waiver or modification of any requirement,
    other than an application process timing requirement, imposed
    by or under this Act.
      (d) Report.--Within 1 year after the date of the enactment of
    this section, and annually thereafter, 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 examining the actions
    undertaken under, and the results of, the pilot program.
      (e) Termination of Effectiveness.--The authority provided by
    this section shall terminate effective September 30, 2031.

               *       *       *       *       *       *       *

      Sec. 335. (a) The Secretary is authorized and empowered to
    make advances, without regard to any loan or total indebtedness
    limitation, to preserve and protect the security for or the
    lien or priority of the lien securing any loan or other
    indebtedness owing to, insured by, or acquired by the Secretary
    under this title or under any other programs administered by
    the [Farmers Home Administration or the Rural Development
    Administration] Farm Service Agency or Rural Development; to
    bid for and purchase at any execution, foreclosure, or other
    sale or otherwise to acquire property upon which the United
    States has a lien by reason of a judgment or execution arising
    from, or which is pledged, mortgaged, conveyed, attached, or
    levied upon to secure the payment of, any such indebtedness
    whether or not such property is subject to other liens, to
    accept title to any property so purchased or acquired; and to
    sell, manage, or otherwise dispose of such property as
    hereinafter provided.
      (b) Except as provided in subsections (c) and (e), real
    property administered under the provisions of this title may be
    operated or leased by the Secretary for such period or periods
    as the Secretary may deem necessary to protect the Government's
    investment therein.
      (c) Sale of Property.--
              (1) In general.--Subject to this subsection and
            subsection (e)(1)(A), the Secretary shall offer to sell
            real property that is acquired by the Secretary under
            this title using the following order and method of
            sale:
                      (A) Advertisement.--Not later than [15] 60
                    days after acquiring real property, the
                    Secretary shall publicly advertise the property
                    for sale.
                      (B) Beginning farmer or rancher; socially
                    disadvantaged farmer or rancher.--
                              (i) In general.--Not later than [135]
                            180 days after acquiring real property
                            suitable for farming and ranching, as
                            determined by the Secretary, the
                            Secretary shall offer to sell the
                            property to a qualified beginning
                            farmer or rancher or a socially
                            disadvantaged farmer or rancher at
                            current market value based on a current
                            appraisal.
                              (ii) Random selection.--If more than
                            1 qualified beginning farmer or rancher
                            or socially disadvantaged farmer or
                            rancher offers to purchase the
                            property, the Secretary shall select
                            between the qualified applicants on a
                            random basis.
                              (iii) Appeal of random selection.--A
                            random selection or denial by the
                            Secretary of a beginning farmer or
                            rancher or a socially disadvantaged
                            farmer or rancher for farm inventory
                            property under this subparagraph shall
                            be final and not administratively
                            appealable.
                              (iv) Combining and dividing of
                            property.--To the maximum extent
                            practicable, the Secretary shall
                            maximize the opportunity for beginning
                            farmers or ranchers and socially
                            disadvantaged farmers or 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.
                      (C) Public sale.--If no acceptable offer is
                    received from a qualified beginning farmer or
                    rancher or a socially disadvantaged farmer or
                    rancher under subparagraph (B) [not later than
                    135 days after acquiring the real property, the
                    Secretary shall, not later than 30 days after
                    the 135-day period,] or if the property is not
                    suitable for farming and ranching as determined
                    by the Secretary, not later than 60 days after
                    the 180-day period, the Secretary shall sell
                    the property after public notice at a public
                    sale, and, if no acceptable bid is received, by
                    negotiated sale, at the best price obtainable.
              (2) 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).
              (3) Interest.--
                      (A) In general.--Subject to subparagraph (B),
                    any conveyance of real property under this
                    subsection shall include all of the interest of
                    the United States in the property, including
                    mineral rights.
                      (B) Conservation.--The Secretary may for
                    conservation purposes grant or sell an
                    easement, restriction, development right, or
                    similar legal right to real property to a
                    State, a political subdivision of a State, or a
                    private nonprofit organization separately from
                    the underlying fee or other rights to the
                    property owned by the United States.
              (4) Other law.--The Federal Property and
            Administrative Services Act of 1949 (40 U.S.C. 471 et
            seq.) shall not apply to any exercise of authority
            under this title.
              (5) Lease of property.--
                      (A) In general.--Subject to subparagraph (B),
                    the Secretary may not lease any real property
                    acquired under this title.
                      (B) Exception.--
                              (i) Beginning farmer or rancher;
                            socially disadvantaged farmer or
                            rancher.--The Secretary may lease or
                            contract to sell to a beginning farmer
                            or rancher or a socially disadvantaged
                            farmer or rancher a farm or ranch
                            acquired by the Secretary under this
                            title if the beginning farmer or
                            rancher or the socially disadvantaged
                            farmer or rancher qualifies for a
                            credit sale or direct farm ownership
                            loan under subtitle A but credit sale
                            authority for loans or direct farm
                            ownership loan funds, respectively, are
                            not available.
                              (ii) Term.--The term of a lease or
                            contract to sell to a beginning farmer
                            or rancher or a socially disadvantaged
                            farmer or rancher under clause (i)
                            shall be until the earlier of--
                                      (I) the date that is 18
                                    months after the date of the
                                    lease or sale; or
                                      (II) the date that direct
                                    farm ownership loan funds or
                                    credit sale authority for loans
                                    becomes available to the
                                    beginning farmer or rancher or
                                    the socially disadvantaged
                                    farmer or rancher.
                              (iii) Income-producing capability.--
                            In determining the rental rate on real
                            property leased under this
                            subparagraph, the Secretary shall
                            consider the income-producing
                            capability of the property during the
                            term that the property is leased.
              (6) Expedited determination.--
                      (A) In general.--On the request of an
                    applicant, not later than 30 days after denial
                    of the applicant's application, the appropriate
                    State director shall provide an expedited
                    review and determination of whether the
                    applicant is a beginning farmer or rancher or a
                    socially disadvantaged farmer or rancher for
                    the purpose of acquiring farm inventory
                    property.
                      (B) Appeal.--The determination of a State
                    Director under subparagraph (A) shall be final
                    and not administratively appealable.
                      (C) Effects of determinations.--
                              (i) In general.--The Secretary shall
                            maintain statistical data on the number
                            and results of determinations made
                            under subparagraph (A) and the effect
                            of the determinations on--
                                      (I) selling farm inventory
                                    property to beginning farmers
                                    or ranchers and socially
                                    disadvantaged farmers or
                                    ranchers; and
                                      (II) disposing of real
                                    property in inventory.
                              (ii) Notification.--The Secretary
                            shall notify the Committee on
                            Agriculture of the House of
                            Representatives and the Committee on
                            Agriculture, Nutrition, and Forestry of
                            the Senate if the Secretary determines
                            that the review process under
                            subparagraph (A) is adversely affecting
                            the selling of farm inventory property
                            to beginning farmers or ranchers or
                            socially disadvantaged farmers or
                            ranchers or the disposing of real
                            property in inventory.
      (d) With respect to any real property administered under this
    title, the Secretary is authorized to grant or sell easements
    or rights-of-way for roads, utilities, and other appurtenances
    not inconsistent with the public interest. With respect to any
    rights-of-way over land on which the United States has a lien
    administered under this title, the Secretary may release said
    lien upon payment to the United States of adequate
    consideration, and the interest of the United States arising
    under any such lien may be acquired for highway purposes by any
    State or political subdivision thereof in condemnation
    proceedings under State law by service by certified mail upon
    the United States attorney for the district, the State Director
    of the [Farmers Home Administration] Farm Service Agency for
    the State in which the farm is located, and the Attorney
    General of the United States: Provided, however, That the
    United States shall not be required to appear, answer, or
    respond to any notice or writ sooner than ninety days from the
    time such notice or writ is returnable or purports to be
    effective, and the taking or vesting of title to the interest
    of the United States shall not become final under any
    proceeding, order, or decree until adequate compensation and
    damages have been finally determined and paid to the United
    States or into the registry of the court.
      (e)(1)(A)(i) Except as provided in subparagraph (D), if--
              (I) the Secretary acquires property under this title
            that is located within an Indian reservation; and
              (II) the borrower-owner is the Indian tribe that has
            jurisdiction over the reservation in which the real
            property is located or the borrower-owner is a member
            of such Indian tribe;
    the Secretary shall dispose of or administer the property only
    as provided for in this subparagraph.
      (ii) For purposes of this subparagraph, the term ``Indian
    reservation'' means all land located within the limits of any
    Indian reservation under the jurisdiction of the United States,
    notwithstanding the issuance of any patent, and, including
    rights-of-way running through the reservation; trust or
    restricted land located within the boundaries of a former
    reservation of a federally recognized Indian tribe in the State
    of Oklahoma; or all Indian allotments the Indian titles to
    which have not been extinguished if such allotments are subject
    to the jurisdiction of a federally recognized Indian tribe.
      (iii) Not later than 90 days after acquiring the property,
    the Secretary shall afford an opportunity to purchase or lease
    the real property in accordance with the order of priority
    established under clause (iv) by the Indian tribe having
    jurisdiction over the Indian reservation within which the real
    property is located or, if no order of priority is established
    by such Indian tribe under clause (iv), in the following order:
              (I) to an Indian member of the Indian tribe that has
            jurisdiction over the reservation within which the real
            property is located;
              (II) to an Indian corporate entity;
              (III) to such Indian tribe.
      (iv) The governing body of any Indian tribe having
    jurisdiction over an Indian reservation may revise the order of
    priority provided in clause (iii) under which lands located
    within such reservation shall be offered for purchase or lease
    by the Secretary under clause (iii) and may restrict the
    eligibility for such purchase or lease to--
              (I) persons who are members of such Indian tribe,
              (II) Indian corporate entities that are authorized by
            such Indian tribe to lease or purchase lands within the
            boundaries of such reservation, or
              (III) such Indian tribe itself.
      (v) If real property described in clause (i) is not purchased
    or leased under clause (iii) and the Indian tribe having
    jurisdiction over the reservation within which the real
    property is located is unable to purchase or lease the real
    property, the Secretary shall transfer the real property to the
    Secretary of the Interior who shall administer the real
    property as if the real property were held in trust by the
    United States for the benefit of such Indian tribe. From the
    rental income derived from the lease of the transferred real
    property, and all other income generated from the transferred
    real property, the Secretary of the Interior shall pay those
    State, county, municipal, or other local taxes to which the
    transferred real property was subject at the time of
    acquisition by the Secretary, until the earlier of--
              (I) the expiration of the 4-year period beginning on
            the date on which the real property is so transferred,
            or
              (II) such time as the lands are transferred into
            trust pursuant to clause (viii).
      (vi) At any time any real property is transferred to the
    Secretary of the Interior under clause (v), the Secretary of
    Agriculture shall be deemed to have no further responsibility
    under this Act for collection of any amounts with regard to the
    farm program loan which had been secured by such real property,
    nor with regard to any lien arising out of such loan
    transaction, nor for repayments of any amount with regard to
    such loan transactions or liens to the Treasury of the United
    States, and the Secretary of the Interior shall be deemed to
    have succeeded to all right, title and interest of the
    Secretary of Agriculture in such real estate arising from the
    farm program loan transaction, including the obligation to
    remit to the Treasury of the United States, in repayment of the
    original loan, those amounts provided in clause (vii).
      (vii) After the payment of any taxes which are required to be
    paid under clause (v), all remaining rental income derived from
    the lease of the real property transferred to the Secretary of
    the Interior under clause (v), and all other income generated
    from the real property transferred to the Secretary of the
    Interior under clause (v), shall be deposited as miscellaneous
    receipts in the Treasury of the United States until the amount
    deposited is equal to the lesser of--
              (I) the amount of the outstanding lien of the United
            States against such real property, as of the date the
            real property was acquired by the Secretary;
              (II) the fair market value of the real property, as
            of the date of the transfer to the Secretary of the
            Interior; or
              (III) the capitalized value of the real property, as
            of the date of the transfer to the Secretary of the
            Interior.
      (viii) When the total amount that is required to be deposited
    under clause (vii) with respect to any real property has been
    deposited into the Treasury of the United States, title to the
    real property shall be held in trust by the United States for
    the benefit of the Indian tribe having jurisdiction over the
    Indian reservation within which the real property is located.
      (ix) Notwithstanding any other clause of this subparagraph,
    the Indian tribe having jurisdiction over the Indian
    reservation within which the real property described in clause
    (i) is located may, at any time after the real property has
    been transferred to the Secretary of the Interior under clause
    (v), offer to pay the remaining amount on the lien, or the fair
    market value of the real property, whichever is less. Upon
    payment of such amount, title to such real property shall be
    held by the United States in trust for the tribe and such trust
    or restricted lands that have been acquired by the Secretary
    under foreclosure or voluntary transfer under a loan made or
    insured under this title and transferred to an Indian person,
    entity, or tribe under the provisions of this subparagraph
    shall be deemed to have never lost trust or restricted status.
      (x) This subparagraph shall apply to all lands in the land
    inventory established under this title (as of the date of
    enactment of this clause) that were (immediately prior to such
    date) owned by an Indian borrower-owner described in clause (i)
    and that are situated within an Indian reservation (as defined
    in clause (ii)), regardless of the date of foreclosure or
    acquisition by the Secretary. The Secretary shall afford an
    opportunity to a tribal member, an Indian corporate entity, or
    the tribe to purchase or lease the real property as provided in
    clause (iii). If the right is not exercised or no expression of
    intent to exercise such right is received within 180 days after
    the date of enactment of this clause, the Secretary shall
    transfer the real property to the Secretary of the Interior as
    provided in clause (v).
      (B) The rights provided in this subsection shall be in
    addition to any such right of first refusal under the law of
    the State in which the property is located.
      (C) As used in this paragraph, the term ``borrower-owner''
    means--
              (i) a borrower from whom the Secretary acquired real
            farm or ranch property (including the principal
            residence of the borrower) used to secure any loan made
            to the borrower under this title; or
              (ii) in any case in which an owner of property
            pledged the property to secure the loan and the owner
            is different than the borrower, the owner.
      (D)(i) If--
              (I) the real property described in subparagraph
            (A)(i) is located within an Indian reservation;
              (II) the borrower-owner is an Indian tribe that has
            jurisdiction over the reservation in which the real
            property is located or the borrower-owner is a member
            of an Indian tribe;
              (III) the borrower-owner has obtained a loan made,
            insured, or guaranteed under this title; and
              (IV) the borrower-owner and the Secretary have
            exhausted all of the procedures provided for in this
            title to permit a borrower-owner to retain title to the
            real property, such that it is necessary for the
            borrower-owner to relinquish title,
    the Secretary shall dispose of or administer the property only
    as provided in subparagraph (A), as modified by this
    subparagraph.
      (ii) The Secretary shall provide the borrower-owner of real
    property that is described in clause (i) with written notice
    of--
              (I) the right of the borrower-owner to voluntarily
            convey the real property to the Secretary; and
              (II) the fact that real property so conveyed will be
            placed in the inventory of the Secretary.
      (iii) The Secretary shall provide the borrower-owner of the
    real property with written notice of the rights and protections
    provided under this title to the borrower-owner, and the Indian
    tribe that has jurisdiction over the reservation in which the
    real property is located, from foreclosure or liquidation of
    the real property, including written notice of--
              (I) the provisions of subparagraph (A), this
            subparagraph, and subsection (g)(6);
              (II) if the borrower-owner does not voluntarily
            convey the real property to the Secretary, that--
                      (aa) the Secretary may foreclose on the
                    property;
                      (bb) in the event of foreclosure, the
                    property will be offered for sale;
                      (cc) the Secretary must offer a bid for the
                    property that is equal to the fair market value
                    of the property or the outstanding principal
                    and interest of the loan, whichever is higher;
                      (dd) the property may be purchased by another
                    party; and
                      (ee) if the property is purchased by another
                    party, the property will not be placed in the
                    inventory of the Secretary and the borrower-
                    owner will forfeit the rights and protections
                    provided under this title; and
              (III) the opportunity of the borrower-owner to
            consult with the Indian tribe that has jurisdiction
            over the reservation in which the real property is
            located or counsel to determine if State or tribal law
            provides rights and protections that are more
            beneficial than those provided the borrower-owner under
            this title.
      (iv)(I) Except as provided in subclause (II), the Secretary
    shall accept the voluntary conveyance of real property
    described in clause (i).
      (II) If a hazardous substance (as defined in section 101(14)
    of the Comprehensive Environmental Response, Compensation, and
    Liability Act of 1980 (42 U.S.C. 9601(14))) is located on the
    property and the Secretary takes remedial action to protect
    human health or the environment if the property is taken into
    inventory, the Secretary shall accept the voluntary conveyance
    of the property only if the Secretary determines that it is in
    the best interests of the Federal Government.
              (v) Foreclosure procedures.--
                      (I) Notice to borrower.--If an Indian
                    borrower-owner does not voluntarily convey to
                    the Secretary real property described in clause
                    (i), not less than 30 days before a foreclosure
                    sale of the property, the Secretary shall
                    provide the Indian borrower-owner with the
                    option of--
                              (aa) requiring the Secretary to
                            assign the loan and security
                            instruments to the Secretary of the
                            Interior, if the Secretary of the
                            Interior agrees to an assignment
                            releasing the Secretary of Agriculture
                            from all further responsibility for
                            collection of any amounts with regard
                            to the loan secured by the real
                            property; or
                              (bb) requiring the Secretary to
                            assign the loan and security
                            instruments to the tribe having
                            jurisdiction over the reservation in
                            which the real property is located, if
                            the tribe agrees to the assignment.
                      (II) Notice to tribe.--If an Indian borrower-
                    owner does not voluntarily convey to the
                    Secretary real property described in clause
                    (i), not less than 30 days before a foreclosure
                    sale of the property, the Secretary shall
                    provide written notice to the Indian tribe that
                    has jurisdiction over the reservation in which
                    the real property is located of--
                              (aa) the sale;
                              (bb) the fair market value of the
                            property; and
                              (cc) the requirements of this
                            subparagraph.
                      (III) Assumed loans.--If an Indian tribe
                    assumes a loan under subclause (I)--
                              (aa) the Secretary shall not
                            foreclose the loan because of any
                            default that occurred prior to the date
                            of the assumption;
                              (bb) the loan shall be for the lesser
                            of the outstanding principal and
                            interest of the loan or the fair market
                            value of the property; and
                              (cc) the loan shall be treated as
                            though the loan was made under Public
                            Law 91-229 (25 U.S.C. 488 et seq.).
      (vi)(I) Except as provided in subclause (II), at a
    foreclosure sale of real property described in clause (i), the
    Secretary shall offer a bid for the property that is equal to
    the higher of--
              (aa) the fair market value of the property; or
              (bb) the outstanding principal and interest of the
            loan.
      (II) If a hazardous substance (as defined in section 101(14)
    of the Comprehensive Environmental Response, Compensation, and
    Liability Act of 1980 (42 U.S.C. 9601(14))) is located on the
    property and the Secretary takes remedial action to protect
    human health or the environment if the property is taken into
    inventory, subclause (I) shall apply only if the Secretary
    determines that it is in the best interests of the Federal
    Government.
      (2) The Secretary shall not offer for sale or sell any such
    farmland if the placing of such farmland on the market will
    have a detrimental effect on the value of farmland in the area.
      (3)(A) The Secretary may sell farmland administered under
    this title through an installment sale or similar device that
    contains such terms as the Secretary considers necessary to
    protect the investment of the Federal Government in such land.
      (B) The Secretary may subsequently sell any contract entered
    into to carry out subparagraph (A).
      (4) In the case of farmland administered under this title
    that is highly erodible land (as defined in section 1201 of the
    Food Security Act of 1985), the Secretary may require the use
    of specified conservation practices on such land as a condition
    of the sale or lease of such land.
      (5) Notwithstanding any other provisions of law, compliance
    by the Secretary with this subsection shall not cause any
    acreage allotment, marketing quota, or acreage base assigned to
    such property to lapse, terminate, be reduced, or otherwise be
    adversely affected.
      (6) In the event of any conflict between any provision of
    this subsection and any provision of the law of any State
    providing a right of first refusal to the owner of farmland or
    the operator of a farm before the sale or lease of land to any
    other person, such provision of State law shall prevail.
      (f)(1) As used in this subsection, the term ``normal income
    security'' means all security not considered basic security,
    including crops, livestock, poultry products, [Agricultural
    Stabilization and Conservation Service payments] Farm Service
    Agency farm program and Commodity Credit Corporation payments,
    and other property covered by [Farmers Home Administration
    liens] liens for a farmer program loan that is sold in
    conjunction with the operation of a farm or other business, but
    shall not include any equipment (including fixtures in States
    that have adopted the Uniform Commercial Code), or foundation
    herd or flock, that is the basis of the farming or other
    operation, and is the basic security for a [Farmers Home
    Administration farmer] Farm Service Agency farmer program loan.
      (2) The Secretary shall release from the normal income
    security provided for such loan an amount sufficient to pay for
    the essential household and farm operating expenses of the
    borrower, until such time as the Secretary accelerates such
    loan.
      [(3) A borrower whose account was accelerated on or after
    November 1, 1985, and on or before May 7, 1987, but not
    thereafter foreclosed on or liquidated, shall be entitled to
    the release of security income for a period of 12 months, to
    pay the essential household and farm operating expenses of such
    borrower in an amount not to exceed $18,000 over 12 months, if
    such borrower--
              [(A) as of October 30, 1987, continued to be actively
            engaged in the farming operations for which the
            Secretary had made the farmer program loan; and
              [(B) as of the deadline for responding to the notice
            provided for under paragraph (5), requests
            restructuring of such loans pursuant to section 353.
      [(4) The county committee in the county in which borrower's
    land is located shall determine whether the borrower has
    complied with the requirements of paragraph (3)(A).
      [(5)(A) Within 45 days after the date of the enactment of
    this subsection, the Secretary shall provide to the borrowers
    described in paragraph (3) notice by certified mail of the
    right of such borrowers to apply for the benefits under such
    paragraph.
      [(B) Releases under such paragraph shall be made to qualified
    borrowers who have responded to the notice within 30 days after
    receipt.
      [(C) Within 12 months after a borrower has requested
    restructuring under section 353, the Secretary shall make a
    final determination on the request. Notwithstanding the 12-
    month limitation provided for in paragraph (3), releases shall
    continue to be made to the borrower until a denial or dismissal
    of the application of the borrower for restructuring under
    section 353 is made. The amount of essential household and farm
    operating expenses which may be released to any borrower
    eligible for such releases after 12 months may exceed $18,000,
    by an amount proportionate to the period of time beyond 12
    months before a final determination is made by the Secretary.]
      [(6)] (3) If a borrower is required to plan for or to report
    on how proceeds from the sale of collateral property will be
    used, the Secretary shall--
              (A) notify the borrower of such requirement; and
              (B) notify the borrower of the right to the release
            of funds under this section and the means by which a
            request for the funds may be made.
      [(7) The Secretary shall issue regulations consistent with
    this section that--
              [(A) ensure the release of funds to each borrower;
            and
              [(B) establish guidelines for releases under
            paragraph (3), including a list of expenditures for
            which funds will normally be released.]
      (4) The Secretary shall issue regulations consistent with
    this section that ensures the release of funds to each
    borrower.
      (g) Easements on Inventoried Property.--
              (1) In general.--Subject to paragraph (2), in the
            disposal of real property under this section, the
            Secretary shall establish perpetual wetland
            conservation easements to protect and restore wetlands
            or converted wetlands that exist on inventoried
            property.
              (2) Limitation.--The Secretary shall not establish a
            wetland conservation easement on an inventoried
            property that--
                      (A) was cropland on the date the property
                    entered the inventory of the Secretary; or
                      (B) was used for farming at any time during
                    the period beginning on the date 5 years before
                    the property entered the inventory of the
                    Secretary and ending on the date the property
                    entered the inventory of the Secretary.
              (3) Notification.--The Secretary shall provide prior
            written notification to a borrower considering
            preservation loan servicing that a wetlands
            conservation easement may be placed on land for which
            the borrower is negotiating a lease option.
              (4) Appraised value.--The appraised value of the farm
            shall reflect the value of the land due to the
            placement of wetland conservation easements.
      Sec. 336. (a) No officer, attorney, or other employee of the
    Secretary shall, directly or indirectly, be the beneficiary of
    or receive any fee, commission, gift, or other consideration
    for or in connection with any transaction or business under
    this title other than such salary, fee, or other compensation
    as he may receive as such officer, attorney, or employee.
      (b) Except as otherwise provided in this subsection, no
    officer or employee of the Department of Agriculture who acts
    on or reviews an application made by any person under this
    title for a loan to purchase land may acquire, directly or
    indirectly, any interest in such land for a period of three
    years after the date on which such action is taken or such
    review is made. [This prohibition shall not apply to a former
    member of a county committee upon a determination by the
    Secretary, prior to the acquisition of such interest, that such
    former member acted in good faith when acting on or reviewing
    such application.]
      [(c) No member of a county committee shall knowingly make or
    join in making any certification with respect to a loan to
    purchase any land in which he or any person related to him
    within the second degree of consanguinity or affinity has or
    may acquire any interest or with respect to any applicant
    related to him within the second degree of consanguinity or
    affinity.]
      [(d)] (c) Any person violating any provision of this section
    shall, upon conviction thereof, be punished by a fine of not
    more than $2,000 or imprisonment for not more than two years,
    or both.

               *       *       *       *       *       *       *

      Sec. 338. (a) There is authorized to be appropriated to the
    Secretary such sums as the Congress may from time to time
    determine to be necessary to enable the Secretary to carry out
    the purposes of this title and for the administration of assets
    transferred to the [Farmers Home Administration or the Rural
    Development Administration] Farm Service Agency and Rural
    Development.
      (b)(1)(A) The guaranteed portion of any loan made under this
    title may be sold by the lender, and by any subsequent holder,
    in accordance with regulations governing such sales as the
    Secretary shall establish, subject to the following
    limitations:
              (i) All fees due the Secretary with respect to a
            guaranteed loan are to be paid in full before any sale.
              (ii) The loan is to have been fully disbursed to the
            borrower before the sale.
      (B) After a loan is sold in the secondary market, the lender
    shall remain obligated under its guarantee agreement with the
    Secretary, and shall continue to service the loan in accordance
    with the terms and conditions of such agreement.
      (C) The Secretary shall develop such procedures as are
    necessary for the facilitation, administration, and promotion
    of secondary market operations, and for determining the
    increase of farmers' access to capital at reasonable rates and
    terms as a result of secondary market operations.
      (D) This subsection shall not be interpreted to impede or
    extinguish the right of the borrower or the successor in
    interest to such borrower to prepay (in whole or in part) any
    loan made under this title, or to impede or extinguish the
    rights of any party under any provision of this title.
      (2)(A) The Secretary may, directly or through a market maker
    approved by the Secretary, issue pool certificates representing
    ownership of part or all of the guaranteed portion of any loan
    guaranteed by the Secretary under this title. Such certificates
    shall be based on and backed by a pool established or approved
    by the Secretary and composed solely of the entire guaranteed
    portion of such loans.
      (B) The Secretary may, on such terms and conditions as the
    Secretary deems appropriate, guarantee the timely payment of
    the principal and interest on pool certificates issued on
    behalf of the Secretary by approved market makers for purposes
    of this subsection. Such guarantee shall be limited to the
    extent of principal and interest on the guaranteed portions of
    loans that compose the pool. If a loan in such pool is prepaid,
    either voluntarily or by reason of default, the guarantee of
    timely payment of principal and interest on the pool
    certificates shall be reduced in proportion to the amount of
    principal and interest such prepaid loan represents in the
    pool. Interest on prepaid or defaulted loans shall accrue and
    be guaranteed by the Secretary only through the date of payment
    on the guarantee. During the term of the pool certificate, the
    certificate may be called for redemption due to prepayment or
    default of all loans constituting the pool.
      (C) The full faith and credit of the United States is pledged
    to the payment of all amounts that may be required to be paid
    under any guarantee of such pool certificates issued by
    approved market makers under this subsection. The Secretary may
    expend amounts in the Agricultural Credit Insurance Fund to
    make payments on such guarantees.
      (D) The Secretary shall not collect any fee for any guarantee
    under this subsection. The preceding sentence shall not
    preclude the Secretary from collecting a fee for the functions
    described in paragraph (3).
      (E) Within 30 days after a borrower of a guaranteed loan is
    in default of any principal or interest payment due for 60 days
    or more, the Secretary shall--
              (i) purchase the pool certificates representing
            ownership of the guaranteed portion of the loan; and
              (ii) pay the registered holder of the certificates an
            amount equal to the guaranteed portion of the loan
            represented by the certificate.
      (F)(i) If the Secretary pays a claim under a guarantee issued
    under this subsection, the claim shall be subrogated fully to
    the rights satisfied by such payment, as may be provided by the
    Secretary.
      (ii) No State or local law, and no Federal law, shall
    preclude or limit the exercise by the Secretary of the
    Secretary's ownership rights in the portions of loans
    constituting the pool against which the certificates are
    issued.
      (3) On the adoption of final rules and regulations, the
    Secretary shall do the following:
              (A) Provide for the central collection of
            registration information from all participating market
            makers for all loans and pool certificates sold under
            paragraphs (1) and (2). Such information shall include,
            with respect to each original sale and any subsequent
            sale, identification of the interest rate paid by the
            borrower to the lender, the lender's servicing fee,
            whether interest on the loan is at a fixed or variable
            rate, identification of each purchaser of a pool
            certificate, the interest rate paid on the certificate,
            and such other information as the Secretary deems
            appropriate.
              (B) Before any sale, require the seller to disclose
            to each prospective purchaser of the portion of a loan
            guaranteed under this title and to each prospective
            purchaser of a pool certificate issued under paragraph
            (2), information on the terms, conditions, and yield of
            such instrument. As used in this subparagraph, if the
            instrument being sold is a loan, the term ``seller''
            does not include (i) the person who made the loan or
            (ii) any person who sells three or fewer guaranteed
            loans per year.
              (C) Provide for adequate custody of any pooled
            guaranteed loans.
              (D) Take such actions as are necessary, in
            restructuring pools of the guaranteed portion of loans,
            to minimize the estimated costs of paying claims under
            guarantees issued under this subsection.
              (E) Require each market maker--
                      (i) to service all pools formed, and
                    participations sold, by the market maker; and
                      (ii) to provide the Secretary with
                    information relating to the collection and
                    disbursement of all periodic payments,
                    prepayments, and default funds from lenders, to
                    or from the reserve fund that the Secretary
                    shall establish to enable the timely payment
                    guarantee to be self-funding, and from all
                    beneficial holders.
              (F) Regulate market makers in pool certificates sold
            under this subsection.
      (4) The Secretary may contract for goods and services to be
    used for the purposes of this subsection without regard to the
    provisions of titles 5, 40, and 41, United States Code, and any
    regulations issued thereunder.

    SEC. 339. RULES AND REGULATIONS.

      (a) In General.--The Secretary is authorized to make such
    rules and regulations, prescribe the terms and conditions for
    making or insuring loans, security instruments and agreements,
    except as otherwise specified herein, and make such delegations
    of authority as he deems necessary to carry out this title.
      (b) Debt Service Margin Requirements.--Notwithstanding
    subsection (a), in providing farmer program loan guarantees
    under this title, the Secretary shall consider the income of
    the borrower adequate if the income is equal to or greater than
    the income necessary--
              (1) to make principal and interest payments on all
            debt obligations of the borrower, in a timely manner;
              (2) to cover the necessary living expenses of the
            family of the borrower; and
              (3) to pay all other obligations and expenses of the
            borrower not financed through debt obligations referred
            to in paragraph (1).
      (c) Certified Lenders Program.--
              (1) In general.--The Secretary shall establish a
            program under which the Secretary shall guarantee loans
            for any purpose specified in subtitle B that are made
            by lending institutions certified by the Secretary.
              (2) Certification requirements.--The Secretary shall
            certify a lending institution that meets such criteria
            as the Secretary may prescribe in regulations,
            including the ability of the institution to properly
            make, service, and liquidate the loans of the
            institution.
              (3) Condition of certification.--As a condition of
            the certification, the Secretary shall require the
            institution to undertake to service the loans
            guaranteed by the Secretary under this subsection,
            using standards that are not less stringent than
            generally accepted banking standards concerning loan
            servicing employed by prudent commercial or cooperative
            lenders. The Secretary shall, at least annually,
            monitor the performance of each certified lender to
            ensure that the conditions of the certification are
            being met.
              (4) Effect of certification.--Notwithstanding any
            other provision of law:
                      (A) The Secretary shall guarantee 80 percent
                    of a loan made under this subsection by a
                    certified lending institution as described in
                    paragraph (1), subject to [county committee
                    certification that the borrower of the loan
                    meets the eligibility requirements and] the
                    borrower meeting such other criteria as may be
                    applicable to loans guaranteed by the Secretary
                    under other provisions of this title.
                      (B) With respect to loans to be guaranteed by
                    the Secretary under this subsection, the
                    Secretary shall permit certified lending
                    institutions to make appropriate certifications
                    (as provided by regulations issued by the
                    Secretary)--
                              (i) relating to issues such as
                            creditworthiness, repayment ability,
                            adequacy of collateral, and feasibility
                            of farm operation; and
                              (ii) that the borrower is in
                            compliance with all requirements of
                            law, including regulations issued by
                            the Secretary.
                      (C) The Secretary shall approve or disapprove
                    a guarantee not later than 14 calendar days
                    after the date that the lending institution
                    applied to the Secretary for the guarantee. If
                    the Secretary rejects the loan application
                    within the 14-day period, the Secretary shall
                    state, in writing, all of the reasons the
                    application was rejected.
              (5) Relationship to other requirements.--Neither this
            subsection nor subsection (d) shall affect the
            responsibility of the Secretary to certify eligibility,
            review financial information, and otherwise assess an
            application.
      (d) Preferred Certified Lenders Program.--
              (1) In general.--Commencing not later than two years
            after the date of enactment of the Agricultural Credit
            Improvement Act of 1992, the Secretary shall establish
            a Preferred Certified Lenders Program for lenders who
            establish their--
                      (A) knowledge of, and experience under, the
                    program established under subsection (c);
                      (B) knowledge of the regulations concerning
                    the guaranteed loan program; and
                      (C) proficiency related to the certified
                    lender program requirements.
            The Secretary shall certify any lending institution as
            a Preferred Certified Lender that meets such criteria
            as the Secretary may prescribe by regulation.
              (2) Revocation of designation.--The designation of a
            lender as a Preferred Certified Lender shall be revoked
            at any time that the Secretary determines that such
            lender is not adhering to the rules and regulations
            applicable to the program or if the loss experiences of
            a Preferred Certified Lender are excessive as compared
            to other Preferred Certified Lenders, except that such
            suspension or revocation shall not affect any
            outstanding guarantee.
              (3) Condition of certification.--As a condition of
            such preferred certification, the Secretary shall
            require the institution to undertake to service the
            loans guaranteed by the Secretary under this subsection
            using generally accepted banking standards concerning
            loan servicing employed by prudent commercial or
            cooperative lenders. The Secretary shall, at least
            annually, monitor the performance of each Preferred
            Certified Lender to ensure that the conditions of such
            certification are being met.
              (4) Effect of preferred lender certification.--
            Notwithstanding any other provision of law, the
            Secretary shall--
                      (A) guarantee 80 percent of an approved loan
                    made by a certified lending institution as
                    described in this subsection, subject to
                    [county committee certification that the
                    borrower meets the eligibility requirements or]
                    the borrower meeting such other criteria as may
                    be applicable to loans guaranteed by the
                    Secretary under other provisions of this title;
                      (B) permit certified lending institutions to
                    make all decisions, with respect to loans to be
                    guaranteed by the Secretary under this
                    subsection relating to credit worthiness, the
                    closing, monitoring, collection and liquidation
                    of loans, and to accept appropriate
                    certifications, as provided by regulations
                    issued by the Secretary, that the borrower is
                    in compliance with all requirements of law or
                    regulations promulgated by the Secretary; and
                      (C) be deemed to have guaranteed 80 percent
                    of a loan made by a preferred certified lending
                    institution as described in paragraph (1), if
                    the Secretary fails to approve or reject the
                    application of such institution within 14
                    calendar days after the date that the lending
                    institution presented the application to the
                    Secretary. If the Secretary rejects the
                    application within the 14-day period, the
                    Secretary shall state, in writing, the reasons
                    the application was rejected.
      (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. 342. REFINANCING OF CERTAIN RURAL HOSPITAL DEBT.

       [Assistance] (a)  Refinancing of Certain Rural Health Care
    Facility Debt._
              (1) In general._Assistance  under section 306(a) for
            [a community] an area facility, or under section 310B,
            may include the refinancing of a debt obligation of a
            [rural hospital] an eligible health care facility as an
            eligible loan or loan guarantee purpose if the
            assistance would help preserve access to a health
            service in a rural community, meaningfully improve the
            financial position of the [hospital,] eligible health
            care facility, and otherwise meet the financial
            feasibility and adequacy of security requirements of
            the Rural Development Agency.
              (2) Requirements.--To promote the long-term
            sustainability and financial viability of an eligible
            health care facility, the Secretary shall--
                      (A) provide assistance to an eligible health
                    care facility for the purpose of--
                              (i) ensuring the facility has
                            necessary resources to maintain public
                            health, safety, or order;
                              (ii) addressing financial hardships
                            of the facility, its patients, and the
                            area it serves; and
                              (iii) identifying the financial
                            stability of the facility, including--
                                      (I) operational practices;
                                      (II) revenue enhancements;
                                      (III) policy revisions;
                                      (IV) partnerships,
                                    regionalization, or
                                    consolidation of rural health
                                    systems; and
                                      (V) contract services; and
                      (B) require an applicant to--
                              (i) receive financial planning
                            assistance; and
                              (ii) prepare a long-term financial
                            plan.
              (3) Waiver.--In the case of an application for
            refinancing pursuant to this section, the Secretary may
            waive the requirement of section 302(a)(1)(D) if the
            eligible health care facility is insolvent.
      (b) Rural Health Care Facility Technical Assistance
    Program.--
              (1) In general.--In lieu of any other authority under
            which the Secretary may provide technical assistance to
            any eligible health care facility, the Secretary shall
            establish, and maintain, directly or by grant,
            contract, or cooperative agreement, a Rural Health Care
            Facility Technical Assistance Program (in this section
            referred to as the ``Program'') to provide technical
            assistance and training, tailored to the capacity and
            needs of each eligible health care facility, to help
            eligible health care facilities in rural areas--
                      (A) identify development needs for
                    maintaining essential health care services, and
                    support action plans for operational and
                    quality improvement projects to meet the
                    development needs;
                      (B) better manage their financial and
                    business strategies, including providing
                    financial planning assistance and preparing
                    long-term financial plans; and
                      (C) identify, and apply for assistance from,
                    loan and grant programs of the Department of
                    Agriculture for which the facilities are
                    eligible.
              (2) Goals.--The goals of the Program shall be to--
                      (A) improve the long-term financial position
                    and operational efficiency of the eligible
                    health care facilities;
                      (B) prevent the closure of eligible health
                    care facilities;
                      (C) strengthen the delivery of health care in
                    rural areas;
                      (D) help eligible health care facilities
                    better access and compete for loans and grants
                    from programs administered by the Department of
                    Agriculture; and
                      (E) continue the activities of the Rural
                    Hospital Technical Assistance Program in effect
                    as of the date of the enactment of this
                    subsection.
              (3) Program participation.--
                      (A) In general.--The Secretary shall engage
                    in outreach and engagement strategies to
                    encourage eligible health care facilities to
                    participate in the Program.
                      (B) Eligible health care facility
                    selection.--In selecting eligible health care
                    facilities to participate in the Program, the
                    Secretary shall give priority to borrowers and
                    grantees of the Rural Housing Service, Rural
                    Business-Cooperative Service, and Rural
                    Utilities Service. The Secretary may also
                    consider--
                              (i) the age and physical state of the
                            health care facility involved;
                              (ii) the financial vulnerability of
                            the eligible health care facility, and
                            the ability of the eligible health care
                            facility to meet debt obligations;
                              (iii) the electronic health record
                            implementation needs of the health care
                            facility;
                              (iv) whether the eligible health care
                            facility is located in a health
                            professional shortage area or a
                            medically underserved area;
                              (v) whether the eligible health care
                            facility serves a medically underserved
                            population; and
                              (vi) such other criteria and
                            priorities as are determined by the
                            Secretary of Agriculture.
                      (C) Reporting requirements.--Not later than 1
                    year after the date of the enactment of this
                    section, and annually thereafter, 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 written report describing the progress
                    and results of the program conducted under this
                    section, which should include--
                              (i) a brief description of each
                            project to provide technical assistance
                            to an eligible health care facility
                            under this section, including--
                                      (I) the name and location of
                                    the facility;
                                      (II) a description of the
                                    assistance provided;
                                      (III) a description of the
                                    outcomes for completed
                                    projects;
                                      (IV) the cost of the
                                    technical assistance; and
                                      (V) any other information the
                                    Secretary deems appropriate;
                              (ii) a summary of the technical
                            assistance projects completed;
                              (iii) a summary of the outcomes of
                            the technical assistance projects;
                              (iv) an assessment of the
                            effectiveness of the Program; and
                              (v) recommendations for improving the
                            Program.
                      (D) Limitations on authorization of
                    appropriations.--To carry out this section,
                    there are authorized to be appropriated to the
                    Secretary not more than $2,000,000 for each of
                    fiscal years 2027 through 2031.
      (c) Definitions.--In this section:
              (1) Rural area.--The term ``rural area'' has the
            meaning given the term in section 343(a)(13)(A) of the
            Consolidated Farm and Rural Development Act (7 U.S.C.
            1991(a)(13)(A)).
              (2) Development needs.--The term ``development
            needs'' includes--
                      (A) constructing, expanding, renovating or
                    otherwise modernizing health care facilities;
                      (B) increasing telehealth capabilities;
                      (C) acquiring or upgrading health care
                    information systems such as electronic health
                    records;
                      (D) providing financial planning assistance
                    and preparing long-term financial plan; and
                      (E) such other needs as the Secretary deems
                    critical to maintaining health care services in
                    the community in which an eligible health care
                    facility is located.
              (3) Eligible health care facility.--The term
            ``eligible health care facility'' means a facility that
            is located in a rural area and is--
                      (A) a hospital (as defined in section 1861(e)
                    of the Social Security Act;
                      (B) a psychiatric hospital (as defined in
                    section 1861(f) of such Act);
                      (C) a long-term care hospital (as defined in
                    section 1861(ccc) of such Act);
                      (D) a critical access hospital (as defined in
                    section 1861(mm)(1) of such Act);
                      (E) a rural health clinic (as defined in
                    section 1861(aa)(2) of such Act);
                      (F) a religious nonmedical health care
                    institution (as defined in section 1861(ss)(1)
                    of such Act);
                      (G) a sole community hospital (as defined in
                    section 1886(d)(5)(C)(iii) of such Act);
                      (H) a rural emergency hospital (as defined in
                    section 1861(kkk)(2) of such Act);
                      (I) a home health agency (as defined in
                    section 1861(o) of such Act); or
                      (J) a community health center (as defined in
                    section 330 of the Public Health Service Act).
              (4) Health professional shortage area.--The term
            ``health professional shortage area'' has the meaning
            given the term in section 332(a)(1)(A) of the Public
            Health Service Act.
              (5) Medically underserved area.--The term ``medically
            underserved area'' has the meaning given the term in
            section 330I(a)(5) of the Public Health Service Act.
              (6) Medically underserved population.--The term
            ``medically underserved population'' has the meaning
            given the term in section 330(b)(3) of the Public
            Health Service Act.
      Sec. 343. (a) As used in this title:
              (1) The term ``farmer'' includes a person who is
            engaged in, or who, with assistance afforded under this
            title, intends to engage in, fish farming.
              (2) The term ``farming'' shall be deemed to include
            fish farming.
              (3) The term ``owner-operator'' shall include in the
            State of Hawaii the lessee-operator of real property in
            any case in which the Secretary determines that such
            real property cannot be acquired in fee simple by such
            lessee-operator, that adequate security is provided for
            the loan with respect to such real property for which
            such lessee-operator applies under this title, and that
            there is a reasonable probability of accomplishing the
            objectives and repayment of such loan.
              (4) The word ``insure'' as used in this title
            includes guarantee, which means to guarantee the
            payment of a loan originated, held, and serviced by a
            private financial agency or other lender approved by
            the Secretary.
              (5) The term ``contract of insurance'' includes a
            contract of guarantee.
              (6) The terms ``United States'' and ``State'' shall
            include each of the several States, the Commonwealth of
            Puerto Rico, the Virgin Islands of the United States,
            Guam, American Samoa, the Commonwealth of the Northern
            Mariana Islands, and, to the extent the Secretary
            determines it to be feasible and appropriate, [the
            Trust Territory of the Pacific Islands] the Federated
            States of Micronesia, the Republic of Palau, and the
            Republic of the Marshall Islands.
              (7) The term ``joint operation'' means a joint
            farming operation in which two or more farmers work
            together sharing equally or unequally land, labor,
            equipment, expenses, and income.
              (8) The term ``beginning farmer or rancher'' means
            such term as defined by the Secretary.
              (9) The term ``direct loan'' means a loan made or
            insured from funds in the account created by section
            309.
              (10) The term ``farmer program loan'' means a farm
            ownership loan (FO) under section 303, operating loan
            (OL) under section 312, soil and water loan (SW) under
            section 304, before June 18, 2008, conservation loan
            (CL) under section 304 on or after June 18, 2008,
            emergency loan (EM) under section 321, economic
            emergency loan (EE) under section 202 of the Emergency
            Agricultural Credit Adjustment Act (title II of Public
            Law 95-334), economic opportunity loan (EO) under the
            Economic Opportunity Act of 1961 (42 U.S.C. 2942),
            softwood timber loan (ST) under section 1254 of the
            Food Security Act of 1985, or rural housing loan for
            farm service buildings (RHF) under section 502 of the
            Housing Act of 1949.
              (11) The term ``qualified beginning farmer or
            rancher'' means an applicant, regardless of whether the
            applicant is participating in a program under section
            310E--
                      (A) who is eligible for assistance under this
                    title;
                      (B) who has not operated a farm or ranch, or
                    who has operated a farm or ranch for not more
                    than 10 years;
                      (C) in the case of a cooperative,
                    corporation, partnership, joint operation, or
                    such other legal entity as the Secretary
                    considers appropriate, who has members,
                    stockholders, partners, joint operator, or
                    owners who are all [related to one another by
                    blood or marriage] qualified beginning farmers;
                      (D)(i) in the case of an owner and operator
                    of a farm or ranch, who--
                              (I) in the case of a loan made to an
                            individual, individually or with the
                            immediate family of the applicant--
                                      (aa) materially and
                                    substantially participates in
                                    the operation of the farm or
                                    ranch; and
                                      (bb) provides substantial
                                    day-to-day labor and management
                                    of the farm or ranch,
                                    consistent with the practices
                                    in the State or county in which
                                    the farm or ranch is located;
                                    or
                              (II)(aa) in the case of a loan made
                            to a cooperative, corporation,
                            partnership, joint operation, or such
                            other legal entity as the Secretary
                            considers appropriate, has members,
                            stockholders, partners, joint
                            operators, or owners, materially and
                            substantially participate in the
                            operation of the farm or ranch; and
                              (bb) in the case of a loan made to a
                            cooperative, corporation, partnership,
                            joint operation, or other such legal
                            entity as the Secretary considers
                            appropriate, has members, stockholders,
                            partners, or joint operators, all of
                            whom are qualified beginning farmers or
                            ranchers; and
                      (ii) in the case of an applicant seeking to
                    own and operate a farm or ranch, who--
                              (I) in the case of a loan made to an
                            individual, individually or with the
                            immediate family of the applicant,
                            will--
                                      (aa) materially and
                                    substantially participate in
                                    the operation of the farm or
                                    ranch; and
                                      (bb) provide substantial day-
                                    to-day labor and management of
                                    the farm or ranch, consistent
                                    with the practices in the State
                                    or county in which the farm or
                                    ranch is located; or
                              (II)(aa) in the case of a loan made
                            to a cooperative, corporation,
                            partnership, joint operation, or such
                            other legal entity as the Secretary
                            considers appropriate, will have
                            members, stockholders, partners, joint
                            operators, or owners, materially and
                            substantially participate in the
                            operation of the farm or ranch; and
                              (bb) in the case of a loan made to a
                            cooperative, corporation, partnership,
                            joint operation, or other such legal
                            entity as the Secretary considers
                            appropriate, has members, stockholders,
                            partners, or joint operators, all of
                            whom are qualified beginning farmers or
                            ranchers;
                      (E) who agrees to participate in such loan
                    assessment, borrower training, and financial
                    management programs as the Secretary may
                    require;
                      (F) who does not own land or who, directly or
                    through interests in family farm corporations,
                    owns land, the aggregate acreage of which does
                    not exceed 30 percent of the average acreage of
                    the farms or ranches, as the case may be, in
                    the county in which the farm or ranch
                    operations of the applicant are located, as
                    reported in the most recent census of
                    agriculture, except that this subparagraph
                    shall not apply to a loan made or guaranteed
                    under subtitle B; and
                      (G) who demonstrates that the available
                    resources of the applicant and spouse (if any)
                    of the applicant are not sufficient to enable
                    the applicant to continue farming or ranching
                    on a viable scale.
              (12) Debt forgiveness.--
                      (A) In general.--Except as provided in
                    subparagraph (B), the term ``debt forgiveness''
                    means reducing or terminating a farmer program
                    loan made or guaranteed under this title, in a
                    manner that results in a loss to the Secretary,
                    through--
                              (i) writing down or writing off a
                            loan under section 353;
                              (ii) compromising, adjusting,
                            reducing, or charging-off a debt or
                            claim under section 331;
                              (iii) paying a loss on a guaranteed
                            loan under section 357; or
                              (iv) discharging a debt as a result
                            of bankruptcy.
                      (B) 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.
              (13) Rural and rural area.--
                      (A) In general.--Subject to subparagraphs (B)
                    through (I), 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) any [urbanized] urban area
                            contiguous and adjacent to a city or
                            town described in clause (i).
                      (B) Water and waste disposal grants and
                    direct loans.--For the purpose of water and
                    waste disposal grants and direct loans provided
                    under paragraphs (1) and (2) 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 loans
                    and grants under paragraphs (1), (19), (20),
                    and (21) of section 306(a), the terms ``rural''
                    and ``rural area'' mean any area other than a
                    city, town, or unincorporated area that has a
                    population of greater than 20,000 inhabitants.
                      (D) Areas rural in character.--
                              (i) Application.--This subparagraph
                            applies to--
                                      (I) an [urbanized]urban area
                                    described in subparagraphs
                                    (A)(ii) and (F) that--
                                              (aa) has 2 points on
                                            its boundary that are
                                            at least 40 miles
                                            apart; and
                                              (bb) is not
                                            contiguous or adjacent
                                            to a city or town that
                                            has a population of
                                            greater than 150,000
                                            inhabitants or an
                                            [urbanized] urban area
                                            of such city or town;
                                            and
                                      (II) an area within an
                                    [urbanized] urban area
                                    described in subparagraphs
                                    (A)(ii) and (F) that is within
                                    \1/4\-mile of a rural area
                                    described in subparagraph (A).
                              (ii) Determination.--Notwithstanding
                            any other provision of this paragraph,
                            on the petition of a unit of local
                            government in an area described in
                            clause (i) or on the initiative of the
                            Under Secretary for Rural Development,
                            the Under Secretary may determine that
                            a part of an area described in clause
                            (i) is a rural area for the purposes of
                            this paragraph, if the Under Secretary
                            finds that the part is rural in
                            character, as determined by the Under
                            Secretary.
                              (iii) Administration.--In carrying
                            out this subparagraph, the Under
                            Secretary for Rural Development shall--
                                      (I) not delegate the
                                    authority to carry out this
                                    subparagraph;
                                      (II) consult with the
                                    applicable rural development
                                    State or regional director of
                                    the Department of Agriculture
                                    and the governor of the
                                    respective State;
                                      (III) provide to the
                                    petitioner an opportunity to
                                    appeal to the Under Secretary a
                                    determination made under this
                                    subparagraph;
                                      (IV) release to the public
                                    notice of a petition filed or
                                    initiative of the Under
                                    Secretary under this
                                    subparagraph not later than 30
                                    days after receipt of the
                                    petition or the commencement of
                                    the initiative, as appropriate;
                                      (V) make a determination
                                    under this subparagraph not
                                    less than 15 days, and not more
                                    than 60 days, after the release
                                    of the notice under subclause
                                    (IV);
                                      (VI) submit to the Committee
                                    on Agriculture of the House of
                                    Representatives and the
                                    Committee on Agriculture,
                                    Nutrition, and Forestry of the
                                    Senate an annual report on
                                    actions taken to carry out this
                                    subparagraph; and
                                      (VII) terminate a
                                    determination under this
                                    subparagraph that part of an
                                    area is a rural area on the
                                    date that data is available for
                                    the next decennial census
                                    conducted under section 141(a)
                                    of title 13, United States
                                    Code.
                      (E) Exclusions.--Notwithstanding any other
                    provision of this paragraph, in determining
                    which census blocks in an [urbanized] urban
                    area are not in a rural area (as defined in
                    this paragraph), the Secretary shall exclude
                    any cluster of census blocks that would
                    otherwise be considered not in a rural area
                    only because the cluster is adjacent to not
                    more than 2 census blocks that are otherwise
                    considered not in a rural area under this
                    paragraph.
                      (F) Urban area growth.--
                              (i) Application.--This subparagraph
                            applies to--
                                      (I) any area that--
                                              (aa) is a collection
                                            of census blocks that
                                            are contiguous to each
                                            other;
                                              (bb) has a housing
                                            density that the
                                            Secretary estimates is
                                            greater than 200
                                            housing units per
                                            square mile; and
                                              (cc) is contiguous or
                                            adjacent to an existing
                                            boundary of a rural
                                            area; and
                                      (II) any [urbanized] urban
                                    area contiguous and adjacent to
                                    a city or town described in
                                    subparagraph (A)(i).
                              (ii) Adjustments.--The Secretary may,
                            by regulation only, consider--
                                      (I) an area described in
                                    clause (i)(I) not to be a rural
                                    area for purposes of
                                    subparagraphs (A) and (C); and
                                      (II) an area described in
                                    clause (i)(II) not to be a
                                    rural area for purposes of
                                    subparagraph (C).
                              (iii) Appeals.--A program applicant
                            may appeal an estimate made under
                            clause (i)(I) based on appropriate data
                            for an area, as determined by the
                            Secretary.
                      (G) Hawaii and puerto rico.--Notwithstanding
                    any other provision of this paragraph, within
                    the areas of the County of Honolulu, Hawaii,
                    and the Commonwealth of Puerto Rico, the
                    Secretary may designate any part of the areas
                    as a rural area if the Secretary determines
                    that the part is not urban in character, other
                    than any area included in the Honolulu Census
                    Designated Place or the San Juan Census
                    Designated Place.
                      (H) Exclusion of incarcerated populations.--
                    Populations of individuals incarcerated on a
                    long-term or regional basis shall not be
                    included in determining whether an area is
                    ``rural'' or a ``rural area''.
                      (I) Limited exclusion of military base
                    populations.--The first 1,500 individuals who
                    reside in housing located on a military base
                    shall not be included in determining whether an
                    area is ``rural'' or a ``rural area''.
      (b) As used in sections 307(d), 331D, 335 (e) and (f),
    338(b), 352 (b) and (c), 353, and 357:
              (1) The term ``borrower'' means any farm borrower who
            has outstanding obligations to the Secretary under any
            farmer program loan, without regard to whether the loan
            has been accelerated, but does not include any farm
            borrower all of whose loans and accounts have been
            foreclosed on or liquidated, voluntarily or otherwise.
              (2) The term ``loan service program'' means, with
            respect to a farmer program borrower, a primary loan
            service program or a preservation loan service program.
              (3) The term ``primary loan service program'' means--
                      (A) loan consolidation, rescheduling, or
                    reamortization;
                      (B) interest rate reduction, including the
                    use of the limited resource program;
                      (C) loan restructuring, including deferral,
                    set aside, or writing down of the principal or
                    accumulated interest charges, or both, of the
                    loan; or
                      (D) any combination of actions described in
                    subparagraphs (A), (B), and (C).
              (4) Preservation loan service program.--The term
            ``preservation loan service program'' means homestead
            retention as authorized under section 352.

               *       *       *       *       *       *       *

      Sec. 346. (a) Effective October 1, 1979, the aggregate
    principal amount of loans under the programs authorized under
    each subtitle of this title during each three-year period
    thereafter shall not exceed such amounts as may be authorized
    by law after the date of enactment of this section. There shall
    be two amounts so established for each of such programs and for
    any maximum levels provided in appropriation Acts for the
    programs authorized under this title, one against which direct
    and insured loans shall be charged and the other against which
    guaranteed loans shall be charged.
      (b) Authorization for Loans.--
              (1) In general.--The Secretary may make or guarantee
            loans under subtitles A and B from the Agricultural
            Credit Insurance Fund provided for in section 309 for
            not more than $10,000,000,000 for each of fiscal years
            2019 through [2023] 2031, of which, for each fiscal
            year--
                      (A) $3,000,000,000 shall be for direct loans,
                    of which--
                              (i) $1,500,000,000 shall be for farm
                            ownership loans under subtitle A; and
                              (ii) $1,500,000,000 shall be for
                            operating loans under subtitle B; and
                      (B) $7,000,000,000 shall be for guaranteed
                    loans, of which--
                              (i) $3,500,000,000 shall be for farm
                            ownership loans under subtitle A; and
                              (ii) $3,500,000,000 shall be for
                            operating loans under subtitle B.
              (2) Beginning farmers and ranchers.--
                      (A) Direct loans.--
                              (i) Farm ownership loans.--
                                      (I) In general.--Of the
                                    amounts made available under
                                    paragraph (1) for direct farm
                                    ownership loans, the Secretary
                                    shall reserve an amount that is
                                    not less than 75 percent of the
                                    total amount for qualified
                                    beginning farmers and ranchers.
                                      (II) Down payment loans;
                                    joint financing arrangements.--
                                    Of the amounts reserved for a
                                    fiscal year under subclause
                                    (I), the Secretary shall
                                    reserve an amount not less than
                                    \2/3\ of the amount for the
                                    down payment loan program under
                                    section 310E and joint
                                    financing arrangements under
                                    section 307(a)(3)(D) until
                                    April 1 of the fiscal year, to
                                    the extent practicable.
                              (ii) Operating loans.--Of the amounts
                            made available under paragraph (1) for
                            direct operating loans, the Secretary
                            shall reserve for qualified beginning
                            farmers and ranchers--
                                      (I) for each of fiscal years
                                    1996 through 1998, 25 percent;
                                      (II) for fiscal year 1999, 30
                                    percent; and
                                      (III) for each of fiscal
                                    years 2008 through [2023] 2031,
                                    an amount that is not less than
                                    50 percent.
                              (iii) Funds reserved until september
                            1.--Except as provided in clause
                            (i)(II), funds reserved for qualified
                            beginning farmers or ranchers under
                            this subparagraph for a fiscal year
                            shall be reserved only until September
                            1 of the fiscal year, to the extent
                            practicable.
                      (B) Guaranteed loans.--
                              (i) Farm ownership loans.--Of the
                            amounts made available under paragraph
                            (1) for guarantees of farm ownership
                            loans, the Secretary shall reserve an
                            amount that is not less than 40 percent
                            of the total amount for qualified
                            beginning farmers and ranchers.
                              (ii) Operating loans.--Of the amounts
                            made available under paragraph (1) for
                            guarantees of operating loans, the
                            Secretary shall reserve 40 percent for
                            qualified beginning farmers and
                            ranchers.
                              (iii) Funds reserved until april 1.--
                            Funds reserved for qualified beginning
                            farmers or ranchers under this
                            subparagraph for a fiscal year shall be
                            reserved only until April 1 of the
                            fiscal year, to the extent practicable.
                      (C) Reserved funds for all qualified
                    beginning farmers and ranchers.--If a qualified
                    beginning farmer or rancher meets the
                    eligibility criteria for receiving a direct or
                    guaranteed loan under section 302, 310E, or
                    311, the Secretary shall make or guarantee the
                    loan if sufficient funds reserved under this
                    paragraph are available to make or guarantee
                    the loan.
              (3) Transfer for down payment loans.--
                      (A) In general.--Notwithstanding subsection
                    (a), subject to subparagraph (B)--
                              beginning on August 1 of each fiscal
                            year, the Secretary shall use available
                            unsubsidized guaranteed farm operating
                            loan funds to provide direct farm
                            ownership loans approved by the
                            Secretary to qualified beginning
                            farmers and ranchers under the down
                            payment loan program established under
                            section 310E, if sufficient direct farm
                            ownership loan funds are not otherwise
                            available; and
                              (ii) beginning on September 1 of each
                            fiscal year, the Secretary shall use
                            available unsubsidized guaranteed farm
                            operating loan funds to provide direct
                            farm ownership loans approved by the
                            Secretary to qualified beginning
                            farmers and ranchers, if sufficient
                            direct farm ownership loan funds are
                            not otherwise available.
                      (B) Limitation.--The Secretary shall limit
                    the transfer of funds under subparagraph (A) so
                    that all guaranteed farm operating loans that
                    have been approved, or will be approved, by the
                    Secretary during the fiscal year will be made
                    to the extent of available amounts.
              (4) Transfer for credit sales of farm inventory
            property.--
                      (A) In general.--Notwithstanding subsection
                    (a), subject to subparagraphs (B) and (C),
                    beginning on September 1 of each fiscal year,
                    the Secretary may use available funds made
                    available under subtitle C for the fiscal year
                    to fund the credit sale of farm real estate in
                    the inventory of the Secretary.
                      (B) Supplemental appropriations.--The
                    transfer authority provided under subparagraph
                    (A) shall not apply to any funds made available
                    to the Secretary for any fiscal year under an
                    Act making supplemental appropriations.
                      (C) Limitation.--The Secretary shall limit
                    the transfer of funds under subparagraph (A) so
                    that all emergency disaster loans that have
                    been approved, or will be approved, by the
                    Secretary during the fiscal year will be made
                    to the extent of available amounts.
              (5) Use of additional funds for direct operating
            microloans under certain conditions.--
                      (A) In general.--If the Secretary determines
                    that the amount needed for a fiscal year for
                    direct operating loans (including microloans)
                    under subtitle B is greater than the aggregate
                    principal amount authorized for that fiscal
                    year by this Act, an appropriations Act, or any
                    other provision of law, the Secretary shall
                    make additional microloans under subtitle B
                    using amounts made available under subparagraph
                    (C).
                      (B) Notice.--Not later than 15 days before
                    the date on which the Secretary uses the
                    authority under subparagraph (A), the Secretary
                    shall submit a notice of the use of that
                    authority to--
                              (i) the Committee on Appropriations
                            of the House of Representatives;
                              (ii) the Committee on Appropriations
                            of the Senate;
                              (iii) the Committee on Agriculture of
                            the House of Representatives; and
                              (iv) the Committee on Agriculture,
                            Nutrition, and Forestry of the Senate.
                      (C) Authorization of appropriations.--There
                    is authorized to be appropriated to carry out
                    this paragraph $5,000,000 for each of fiscal
                    years 2019 through [2023] 2031.
      [(c) The Secretary shall develop long-term cost projections
    for loan program authorizations required under subsection (a)
    of this section. Each such projection shall include analyses of
    (1) the long-term costs of the lending levels that the
    Secretary requests to be authorized under subsection (a) of
    this section and (2) the long-term costs for increases in
    lending levels beyond those requested to be authorized, based
    on increments of $10,000,000 or such other levels as the
    Secretary deems appropriate. Long-term cost projections for the
    three-year period beginning with fiscal year 1983 and each
    three-year period thereafter shall be submitted to the House
    Committee on Agriculture, the House Committee on
    Appropriations, the Senate Committee on Agriculture, Nutrition,
    and Forestry, and the Senate Committee on Appropriations at the
    time the requests for authorizations for those periods are
    submitted to Congress. Not later than fifteen days after the
    date of enactment of this subsection the Secretary shall submit
    to such committees long-term cost projections covering
    authorized lending levels for the loan programs for fiscal
    years 1981 and 1982.
      [(d)(1) Notwithstanding any other provision of law, not less
    than 25 per centum of the loans for farm ownership purposes
    under subtitle A of this title, and not less than 25 per centum
    of the loans for farm operating purposes under subtitle B of
    this title, authorized to be insured, or made to be sold and
    insured, from the Agricultural Credit Insurance Fund during
    each fiscal year shall be for low-income, limited-resource
    borrowers.
      [(2) The Secretary shall provide notification to farm
    borrowers under this title, as soon as practicable after the
    date of enactment of the Emergency Agricultural Credit Act of
    1984 and in the normal course of loan making and loan servicing
    operations, of the provisions of this title relating to low-
    income, limited-resource borrowers and the procedures by which
    persons may apply for loans under the low-income, limited-
    resource borrower program.]
      Sec. 347. Notwithstanding any other provision of law, other
    departments, agencies, and executive establishments of the
    Federal Government may participate and provide financial and
    technical assistance jointly with the Secretary to any
    applicant to whom assistance is being provided under any
    program administered by the [Farmers Home Administration] Farm
    Service Agency and Rural Development. Participation by any
    other department, agency, or executive establishment shall be
    only to the extent authorized for, and subject to the
    authorities of, such other department, agency, or executive
    establishment, except that any limitation on joint
    participation is superseded by this section.

               *       *       *       *       *       *       *

      Sec. 349. (a) For purposes of this section:
              (1) The term ``governmental entity'' means any agency
            of the United States, a State, or a unit of local
            government of a State.
              (2) The terms ``highly erodible land'' and
            ``wetland'' have the meanings, respectively, that such
            terms are given in section 1201 of the Food Security
            Act of 1985.
              (3) The term ``wildlife'' means fish or wildlife as
            defined in section 2 of the Lacey Act Amendments of
            1981 (16 U.S.C. 3371).
              (4) The term ``recreational purposes'' includes
            hunting.
      (b) Contracts on Loan Security Properties.--Subject to
    subsection (c), the Secretary may enter into a contract related
    to real property for conservation, recreation, or wildlife
    purposes.
      (c) Limitations.--The Secretary may enter into a contract
    under subsection (b) if--
              (1) such property is wetland, upland, or highly
            erodible land;
              (2) such property is determined by the Secretary to
            be suitable for the purposes involved; and
              (3)(A) such property secures any loan made under any
            law administered by the Secretary and held by the
            Secretary; and
              (B) such contract better enables a qualified borrower
            to repay the loan in a timely manner, as determined by
            the Secretary.
      (d) The terms and conditions specified in each such contract
    shall--
              (1) specify the purposes for which such real property
            may be used;
              (2) identify the conservation measures to be taken,
            and the recreational and wildlife uses to be allowed,
            with respect to such real property; and
              (3) require such owner to permit the Secretary, and
            any person or governmental entity designated by the
            Secretary, to have access to such real property for the
            purpose of monitoring compliance with such contract.
      (e)(1) Subject to paragraph (2), the Secretary may reduce or
    forgive the outstanding debt of a borrower--
              (A) in the case of a borrower to whom the Secretary
            has made one or more outstanding loans under laws
            administered by the Secretary, by canceling that part
            of the aggregate amount of such outstanding loans that
            bears the same ratio to such aggregate amount as the
            number of acres of the real property of the borrower
            that are subject to the contract bears to the aggregate
            number of acres securing such loans; or
              (B) in any other case, by treating as prepaid that
            part of the principal amount of a new loan to the
            borrower issued and held by the Secretary under a law
            administered by the [Farmers Home Administration] Farm
            Service Agency that bears the same ratio to such
            principal amount as the number of acres of the real
            property of the borrower that are subject to the
            contract bears to the aggregate number of acres
            securing the new loan.
      (2) The amount so canceled or treated as prepaid pursuant to
    paragraph (1) shall not exceed--
              (A) in the case of a delinquent loan, the value of
            the land on which the contract is entered into or the
            difference between the amount of the outstanding loan
            secured by the land and the value of the land,
            whichever is greater; or
              (B) in the case of a nondelinquent loan, 33 percent
            of the amount of the loan secured by the land.
      (f) If the Secretary elects to use the authority provided by
    this section, the Secretary shall consult with the Director of
    the Fish and Wildlife Service for purposes of--
              (1) selecting real property in which the Secretary
            may enter into contracts under this section;
              (2) formulating the terms and conditions of such
            contracts; and
              (3) enforcing such contracts.
      (g) The Secretary, and any person or governmental entity
    designated by the Secretary, may enforce a contract entered
    into by the Secretary under this section.

               *       *       *       *       *       *       *

      Sec. 352. (a) As used in this section:
              (1) The term ``Administrator'' means the
            Administrator of the Small Business Administration.
              (2) The term ``borrower-owner'' means--
                      (A) a borrower-owner of a loan made or
                    insured by the Secretary or the Administrator
                    who meets the eligibility requirements of
                    subsection (c)(1); or
                      (B) in any case in which an owner of
                    homestead property pledged the property to
                    secure the loan and the owner is different than
                    the borrower-owner, the owner.
              (3) The term ``farm program loan'' means any loan
            made by the Administrator under the Small Business Act
            (15 U.S.C. 631 et seq.) for any of the purposes
            authorized for loans under subtitle A or B of the
            Consolidated Farm and Rural Development Act (7 U.S.C.
            1921 et seq.).
              (4) The term ``homestead property'' means the
            principal residence and adjoining property possessed
            and occupied by a borrower-owner specified in paragraph
            (2) of this subsection, including a reasonable number
            of farm outbuildings located on the adjoining land that
            are useful to the occupants of the homestead, and no
            more than 10 acres of adjoining land that is used to
            maintain the family of the individual.
              (5) The term ``Secretary'' means the Secretary of
            Agriculture.
      (b)(1) The Secretary or the Administrator shall, on
    application by a borrower-owner who meets the eligibility
    requirements of subsection (c)(1), permit the borrower-owner to
    retain possession and occupancy of homestead property under the
    terms set forth, and until the action described in this section
    has been completed, if--
              (A) the Secretary forecloses, holds in inventory on
            the date of the enactment of this paragraph, or takes
            into inventory, property securing a loan made or
            insured under this title;
              (B) the Administrator forecloses, holds in inventory
            on the date of the enactment of this paragraph, or
            takes into inventory, property securing a farm program
            loan made under the Small Business Act (15 U.S.C. 631
            et seq.); or
              (C) the borrower-owner of a loan made or insured by
            the Secretary or the Administrator files a petition in
            bankruptcy that results in the conveyance of the
            homestead property to the Secretary or the
            Administrator, or agrees to voluntarily liquidate or
            convey such property in whole or in part.
      (2) The value of the homestead property shall be determined
    insofar as possible by an independent appraisal made within six
    months from the date of the borrower-owner's application to
    retain possession and occupancy of the homestead property.
      (3) The period of occupancy of homestead property under this
    subsection may not exceed five years, but in no case shall the
    Secretary or the Administrator grant a period of occupancy less
    than three years, subject to compliance with the requirements
    of subsection (c).
      (c)(1) To be eligible to occupy homestead property, a
    borrower-owner of a loan made or insured by the Secretary or
    the Administrator shall--
              (A) apply for such occupancy not later than 30 days
            after the property is acquired by the Secretary or
            Administrator, or for property in inventory on the date
            of the enactment of this subsection, the borrower-owner
            shall apply for occupancy not later than 30 days after
            such date;
              (B) have received from farming or ranching operations
            gross farm income reasonably commensurate with--
                      (i) the size and location of the farming unit
                    of the borrower-owner; and
                      (ii) local agricultural conditions (including
                    natural and economic conditions), in at least 2
                    calendar years during the 6-year period
                    preceding the calendar year in which the
                    application is made;
              (C) have received from farming or ranching operations
            at least 60 percent of the gross annual income of the
            borrower-owner and any spouse of the borrower-owner in
            at least 2 calendar years during any 6-year period
            described in subparagraph (B);
              (D) have continuously occupied the homestead property
            during the 6-year period described in subparagraph (B),
            except that such requirement may be waived if a
            borrower-owner has, due to circumstances beyond the
            control of the borrower-owner, had to leave the
            homestead property for a period of time not to exceed
            12 months during the 6-year period;
              (E) during the period of the occupancy of the
            homestead property, pay a reasonable sum as rent for
            such property to the Secretary or the Administrator in
            an amount substantially equivalent to rents charged for
            similar residential properties in the area in which the
            homestead property is located;
              (F) during the period of the occupancy of the
            homestead property, maintain the property in good
            condition; and
              (G) meet such other reasonable and necessary terms
            and conditions as the Secretary may require consistent
            with this section.
      (2) For purposes of subparagraphs (B) and (C) of paragraph
    (1), the term ``farming or ranching operations'' shall include
    rent paid by lessees of agricultural land during any period in
    which the borrower-owner, due to circumstances beyond the
    control of the borrower-owner, is unable to actively farm such
    land.
      (3) For the purposes of paragraph (1)(E), the failure of the
    borrower-owner to make timely rental payments shall constitute
    cause for the termination of all rights of such borrower-owner
    to possession and occupancy of the homestead property under
    this section. In effecting any such termination, the Secretary
    shall afford the borrower-owner or lessee the notice and
    hearing procedural rights described in [section 333B] subtitle
    H of title II of Federal Crop Insurance Reform and Department
    of Agriculture Reorganization Act of 1994 and shall comply with
    all applicable State and local laws governing eviction from
    residential property.
      (4)(A) The period of occupancy allowed the prior owner of
    homestead property under this section shall be the period
    requested in writing by the prior owner, except that such
    period shall not exceed 5 years.
      (B) At any time during the period of occupancy of a borrower-
    owner who is a socially disadvantaged farmer or rancher (as
    defined in section 355(e)(2)), the borrower-owner or a member
    of the immediate family of the borrower-owner shall have a
    right of first refusal to reacquire the homestead property on
    such terms and conditions as the Secretary shall determine,
    except that the Secretary may not demand a payment for the
    homestead property that is in excess of the current market
    value of the homestead property as established by an
    independent appraisal. The independent appraisal shall be
    conducted by an appraiser selected by the borrower-owner or
    immediate family member, as the case may be, from a list of
    three appraisers approved by the county supervisor.
      (5) No rights of a borrower-owner under this section, and no
    agreement entered into between the borrower-owner and the
    Secretary for occupancy of the homestead property, shall be
    transferable or assignable by the borrower-owner or by
    operation of any law, except that in the case of death or
    incompetency of such borrower-owner, such rights and agreements
    shall be transferable to the spouse of the borrower-owner if
    the spouse agrees to comply with the terms and conditions
    thereof.
      (6) Not later than the date of acquisition of the property
    securing a loan made under this title (or, in the case of real
    property in inventory on the date of enactment of the Federal
    Agriculture Improvement and Reform Act of 1996, not later than
    5 days after the date of enactment of the Act), the Secretary
    shall notify the borrower-owner from whom the property was
    acquired of the availability of homestead protection rights
    under this section.
      (d) At the end of the period of occupancy described in
    subsection (c), the Secretary or the Administrator shall grant
    to the borrower-owner a first right of refusal to reacquire the
    homestead property on such terms and conditions (which may
    include payment of principal in installments) as the Secretary
    or the Administrator shall determine. Such terms and conditions
    shall not be less favorable than those intended to be offered
    to any other buyer.
      (e) At the time any reacquisition agreement is entered into,
    the Secretary or the Administrator may not demand a total
    payment of principal that is in excess of the value of the
    homestead property as established under subsection (b)(2).
      (f) The Secretary may enter into contracts authorized by this
    section before the Secretary acquires title to the homestead
    property.
      (g) In the event of any conflict between this section and any
    provision of the law of any State relating to the right of a
    borrower-owner to designate for separate sale or redeem part or
    all of the real property securing a loan foreclosed on by the
    lender thereof, such provision of State law shall prevail.

    SEC. 353. DEBT RESTRUCTURING AND LOAN SERVICING.

      (a) In General.--The Secretary shall modify delinquent farmer
    program loans made or insured under this title, or purchased
    from the lender or the Federal Deposit Insurance Corporation
    under section 309B, to the maximum extent possible--
              (1) to avoid losses to the Secretary on such loans,
            with priority consideration being placed on writing-
            down the loan principal and interest (subject to
            subsections (d) and (e)), and debt set-aside (subject
            to subsection (e)), whenever these procedures would
            facilitate keeping the borrower on the farm or ranch,
            or otherwise through the use of primary loan service
            programs as provided in this section; and
              (2) to ensure that borrowers are able to continue
            farming or ranching operations.
      (b) Eligibility.--To be eligible to obtain assistance under
    subsection (a)--
              (1) the delinquency must be due to circumstances
            beyond the control of the borrower, as defined in
            regulations issued by the Secretary, except that the
            regulations shall require that, if the value of the
            assets calculated under subsection (c)(2)(A)(ii) that
            may be realized through liquidation or other methods
            would produce enough income to make the delinquent loan
            current, the borrower shall not be eligible for
            assistance under subsection (a);
              (2) the borrower must have acted in good faith with
            the Secretary in connection with the loan as defined in
            regulations issued by the Secretary;
              (3) the borrower must present a preliminary plan to
            the Secretary that contains reasonable assumptions that
            demonstrate that the borrower will be able to--
                      (A) meet the necessary family living and farm
                    operating expenses; and
                      (B) service all debts, including those of the
                    loans restructured; and
              (4) the loan, if restructured, must result in a net
            recovery to the Federal Government, during the term of
            the loan as restructured, that would be more than or
            equal to the net recovery to the Federal Government
            from an involuntary liquidation or foreclosure on the
            property securing the loan.
      (c) Restructuring Determinations.--
              (1) Determination of net recovery.--In determining
            the net recovery from the involuntary liquidation of a
            loan under this section, the Secretary shall
            calculate--
                      (A) the recovery value of the collateral
                    securing the loan, in accordance with paragraph
                    (2); and
                      (B) the value of the restructured loan, in
                    accordance with paragraph (3).
              (2) Recovery value.--For the purpose of paragraph
            (1), the recovery value of the collateral securing the
            loan shall be based on--
                      (A)(i) the amount of the current appraised
                    value of the interests of the borrower in the
                    property securing the loan; plus
                      (ii) the value of the interests of the
                    borrower in all other assets that are--
                              (I) not essential for necessary
                            family living expenses;
                              (II) not essential to the operation
                            of the farm; and
                              (III) not exempt from judgment
                            creditors or in a bankruptcy action
                            under Federal or State law; less
                      (B) the estimated administrative, legal, and
                    other expenses associated with the liquidation
                    and disposition of the loan and collateral,
                    including--
                              (i) the payment of prior liens;
                              (ii) taxes and assessments,
                            depreciation, management costs, the
                            yearly percentage decrease or increase
                            in the value of the property, and lost
                            interest income, each calculated for
                            the average holding period for the type
                            of property involved;
                              (iii) resale expenses, such as
                            repairs, commissions, and advertising;
                            and
                              (iv) other administrative and
                            attorney's costs; plus.
                      (C) the value, as determined by the
                    Secretary, of any property not included in
                    subparagraph (A)(i) if the property is
                    specified in any security agreement with
                    respect to such loan and the Secretary
                    determines that the value of such property
                    should be included for purposes of this
                    section.
              (3) Value of the restructured loan.--
                      (A) In general.--For the purpose of paragraph
                    (1), the value of the restructured loan shall
                    be based on the present value of payments that
                    the borrower would make to the Federal
                    Government if the terms of such loan were
                    modified under any combination of primary loan
                    service programs to ensure that the borrower is
                    able to meet such obligations and continue
                    farming operations.
                      (B) Present value.--For the purpose of
                    calculating the present value referred to in
                    subparagraph (A), the Secretary shall use a
                    discount rate of not more than the current rate
                    on 90-day Treasury bills.
                      (C) Cash flow margin.--For the purpose of
                    assessing under subparagraph (A) the ability of
                    a borrower to meet debt obligations and
                    continue farming operations, the Secretary
                    shall assume that the borrower needs up to 110
                    percent of the amount indicated for payment of
                    farm operating expenses, debt service
                    obligations, and family living expenses.
              (4) Notification.--Within 90 days after receipt of a
            written request for restructuring from the borrower,
            the Secretary shall--
                      (A) make the calculations specified in
                    paragraphs (2) and (3);
                      (B) notify the borrower in writing of the
                    results of such calculations; and
                      (C) provide documentation for the
                    calculations.
              (5) Restructuring of loans.--If the value of the
            restructured loan is greater than or equal to the
            recovery value, the Secretary shall, within 45 days
            after notifying the borrower of such calculations,
            offer to restructure the loan obligations of the
            borrower under this title through primary loan service
            programs that would enable the borrower to meet the
            obligations (as modified) under the loan and to
            continue the farming operations of the borrower. If the
            borrower accepts such offer, within 45 days after
            receipt of notice of acceptance, the Secretary shall
            restructure the loan accordingly.
              (6) Termination of loan obligations.--The obligations
            of a borrower to the Secretary under a loan shall
            terminate if--
                      (A) the borrower satisfies the requirements
                    of paragraphs (1) and (2) of subsection (b);
                      (B) the value of the restructured loan is
                    less than the recovery value; and
                      (C) not later than 90 days after receipt of
                    the notification described in paragraph (4)(B),
                    the borrower pays (or obtains third-party
                    financing to pay) the Secretary an amount equal
                    to the current market value.
              (7) Negotiation of appraisal.--
                      (A) In general.--In making a determination
                    concerning restructuring under this subsection,
                    the Secretary, at the request of the borrower,
                    shall enter into negotiations concerning
                    appraisals required under this subsection with
                    the borrower.
                      (B) Independent appraisal.--If the borrower,
                    based on a separate current appraisal, objects
                    to the decision of the Secretary regarding an
                    appraisal, the borrower and the Secretary shall
                    mutually agree, to the extent practicable, on
                    an independent appraiser who shall conduct
                    another appraisal of the borrower's property.
                    The average of the two appraisals that are
                    closest in value shall become the final
                    appraisal under this paragraph. The borrower
                    and the Secretary shall each pay one-half of
                    the cost of the independent appraisal.
      (d) Principal and Interest Write-down.--
              (1) In general.--
                      (A) Priority consideration.--In selecting the
                    restructuring alternatives to be used in the
                    case of a borrower who has requested
                    restructuring under this section, the Secretary
                    shall give priority consideration to the use of
                    principal and interest write-down, except that
                    this procedure shall not be given first
                    priority in the case of a borrower unless other
                    creditors of such borrower (other than those
                    creditors who are fully collateralized)
                    representing a substantial portion of the total
                    debt of the borrower held by such creditors,
                    agree to participate in the development of the
                    restructuring plan or agree to participate in a
                    State mediation program.
                      (B) Failure of creditors to agree.--Failure
                    of creditors to agree to participate in the
                    restructuring plan or mediation program shall
                    not preclude the use of principal and interest
                    write-down by the Secretary if the Secretary
                    determines that this restructuring alternative
                    results in the least cost to the Secretary.
              (2) Participation of creditors.--Before eliminating
            the option to use debt write-down in the case of a
            borrower, the Secretary shall make a reasonable effort
            to contact the creditors of such borrower, either
            directly or through the borrower, and encourage such
            creditors to participate with the Secretary in the
            development of a restructuring plan for the borrower.
      (e) Shared Appreciation Arrangements.--
              (1) In general.--As a condition of restructuring a
            loan in accordance with this section, the borrower of
            the loan may be required to enter into a shared
            appreciation arrangement that requires the repayment of
            amounts written off or set aside.
              (2) Terms.--Shared appreciation agreements shall have
            a term not to exceed 10 years, and shall provide for
            recapture based on the difference between the appraised
            values of the real security property at the time of
            restructuring and at the time of recapture.
              (3) Percentage of recapture.--The amount of the
            appreciation to be recaptured by the Secretary shall be
            75 percent of the appreciation in the value of such
            real security property if the recapture occurs within 4
            years of the restructuring, and 50 percent if the
            recapture occurs during the remainder of the term of
            the agreement.
              (4) Time of recapture.--Recapture shall take place at
            the end of the term of the agreement, or sooner--
                      (A) on the conveyance of the real security
                    property;
                      (B) on the repayment of the loans; or
                      (C) if the borrower ceases farming
                    operations.
              (5) Transfer of title.--Transfer of title to the
            spouse of a borrower on the death of such borrower
            shall not be treated as a conveyance for the purpose of
            paragraph (4).
              (6) Notice of recapture.--Beginning with fiscal year
            2000 not later than 12 months before the end of the
            term of a shared appreciation arrangement, the
            Secretary shall notify the borrower involved of the
            provisions of the arrangement.
              (7) Financing of recapture payment.--
                      (A) In general.--The Secretary may amortize a
                    recapture payment owed to the Secretary under
                    this subsection.
                      (B) Term.--The term of an amortization under
                    this paragraph may not exceed 25 years.
                      (C) Interest rate.--
                              (i) In general.--The interest rate
                            applicable to an amortization under
                            this paragraph may not exceed the rate
                            applicable to a loan to reacquire
                            homestead property less 100 basis
                            points.
                              (ii) Existing amortizations and
                            loans.--The interest rate applicable to
                            an amortization or loan made by the
                            Secretary before the date of enactment
                            of this paragraph to finance a
                            recapture payment owed to the Secretary
                            under this subsection may not exceed
                            the rate applicable to a loan to
                            reacquire homestead property less 100
                            basis points.
                      (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.
      (f) Determination To Restructure.--If the appeal process
    results in a determination that a loan is eligible for
    restructuring, the Secretary shall restructure the loan in the
    manner consistent with this section, taking into consideration
    the restructuring recommendations, if any, of the appeals
    officer.
      (g) Prerequisites to Foreclosure or Liquidation.--No
    foreclosure or other similar actions shall be taken to
    liquidate any loan determined to be ineligible for
    restructuring by the Secretary under this section--
              (1) until the borrower has been given the opportunity
            to appeal such decision; and
              (2) if the borrower appeals, the appeals process has
            been completed, and a determination has been made that
            the loan is ineligible for restructuring.
      (h) Time Limits for Restructuring.--Once an appeal has been
    filed [under section 333B], a decision shall be made at each
    level in the appeals process within 45 days after the receipt
    of the appeal or request for further review.
      (i) Notice of Ineligibility for Restructuring.--
              (1) In general.--A notice of ineligibility for
            restructuring shall be sent to the borrower by
            [registered or certified mail] any method that provides
            documentation of delivery within 15 days after such
            determination.
              (2) Contents.--The notice required under paragraph
            (1) shall contain--
                      (A) the determination and the reasons for the
                    determination;
                      (B) the computations used to make the
                    determination, including the calculation of the
                    recovery value of the collateral securing the
                    loan; and
                      (C) a statement of the right of the borrower
                    to appeal the decision to the appeals division,
                    and to appear before a hearing officer.
      (j) Independent Appraisals.--An appeal [filed with the
    appeals division under section 333B] to the National Appeals
    Division may include a request by the borrower for an
    independent appraisal of any property securing the loan. On
    such request, the [appeals division shall] Secretary shall
    present the borrower with a list of three appraisers approved
    by the [county supervisor] Secretary, from which the borrower
    shall select an appraiser to conduct the appraisal, the cost of
    which shall be borne by the borrower. The results of such
    appraisal shall be considered in any final determination
    concerning the loan. A copy of any appraisal made under this
    paragraph shall be provided to the borrower.
      (k) Partial Liquidations.--If partial liquidations are
    performed (with the prior consent of the Secretary) as part of
    loan servicing by a guaranteed lender under this title, the
    Secretary shall not require full liquidation of a delinquent
    loan in order for the lender to be eligible to receive payment
    on losses.
      (l) Disposition of Normal Income Security.--For purposes of
    subsection (b)(2) of this section, if a borrower--
              (1) disposed of normal income security prior to
            October 14, 1988, without the consent of the Secretary;
            and
              (2) demonstrates that--
                      (A) the proceeds were utilized to pay
                    essential household and farm operating
                    expenses; and
                      (B) the borrower would have been entitled to
                    a release of income proceeds by the Secretary
                    if the regulations in effect on the date of
                    enactment of this subsection had been in effect
                    at the time of the disposition,
    the Secretary shall not consider the borrower to have acted
    without good faith to the extent of the disposition.
      (m) Only 1 Write-Down or Net Recovery Buy-Out Per Borrower
    for a Loan Made After January 6, 1988.--
              (1) In general.--The Secretary may provide for any
            one borrower not more than 1 write-down or net recovery
            buy-out under this section with respect to all loans
            made to the borrower after January 6, 1988.
              (2) Special rule.--For purposes of paragraph (1), the
            Secretary shall treat any loan made on or before
            January 6, 1988, with respect to which a restructuring,
            write-down, or net recovery buy-out is provided under
            this section after such date, as a loan made after such
            date.
      (n) Liquidation of Assets.--The Secretary may not use the
    authority provided by this section to reduce or terminate any
    portion of the debt of the borrower that the borrower could pay
    through the liquidation of assets (or through the payment of
    the loan value of the assets, if the loan value is greater than
    the liquidation value) described in subsection (c)(2)(A)(ii).
      (o) Lifetime Limitation on Debt Forgiveness Per Borrower.--
    The Secretary may provide not more than $300,000 in principal
    and interest forgiveness under this section per borrower.

    SEC. 353A. DEBT RESTRUCTURING AND LOAN SERVICING FOR COMMUNITY FACILITY
                        LOANS.

      The Secretary shall establish and implement a program that is
    similar to the program established under section 353, except
    that the debt restructuring and loan servicing procedures shall
    apply to delinquent community facility program loans (rather
    than delinquent farmer program loans) made by the [Farmers Home
    Administration] Farm Service Agency to a hospital or health
    care facility under section 306(a).

               *       *       *       *       *       *       *

    SEC. 356. EXPEDITED CLEARING OF TITLE TO INVENTORY PROPERTY.

      The [Farmers Home Administration may] Farm Service Agency and
    Rural Development may employ local attorneys, on a case-by-case
    basis, to process all legal procedures necessary to clear the
    title to foreclosed properties in [the inventory of the Farmers
    Home Administration] inventory. Such attorneys shall be
    compensated at not more than their usual and customary charges
    for such work.

               *       *       *       *       *       *       *

    SEC. 359. BORROWER TRAINING.

      (a) In General.--The Secretary shall enter into contracts to
    provide educational training to all borrowers of farmer program
    direct loans made under this title in financial and farm
    management concepts associated with commercial farming.
      (b) Contract.--
              (1) In general.--The Secretary may contract with
            State or private providers of farm management and
            credit counseling services (including a community
            college, the extension service of a State, a State
            department of agriculture, or a nonprofit organization)
            to carry out this section.
              (2) Consultation.--The Secretary may consult with the
            chief executive officer of a State concerning the
            identity of the contracting organization and the
            process for contracting.
      (c) Eligibility for Loans.--
              (1) In general.--Subject to paragraph (2), to be
            eligible to obtain a direct loan under this title, a
            borrower must obtain management assistance under this
            section, appropriate to the management ability of the
            borrower [(as determined by the appropriate county
            committee during the determination of eligibility for
            the loan)].
              (2) Loan conditions.--The need of a borrower who
            satisfies the criteria set out in section 302(a)(1)(B)
            or 311(a)(1)(B) for management assistance under this
            section shall not be cause for denial of eligibility of
            the borrower for a direct loan under this title.
      (d) Guidelines and Curriculum.--The Secretary shall issue
    regulations establishing guidelines and curriculum for the
    borrower training program established under this section.
      (e) Payment.--A borrower shall pay for training received
    under this section, and may use funds from operating loans made
    under subtitle B to pay for the training.
      (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. 360. LOAN ASSESSMENTS.

      (a) In General.--The Secretary shall evaluate, in accordance
    with regulations issued by the Secretary, the farming plan and
    financial situation of each qualified farmer or rancher
    applicant.
      (b) Determinations.--In evaluating the farming plan and
    financial situation of an applicant under this section, the
    Secretary shall determine--
              (1) the amount that the applicant will need to borrow
            to carry out the proposed farming plan;
              (2) the rate of interest that the applicant would
            need to be able to cover expenses and build an adequate
            equity base;
              (3) the goals of the proposed farming plan of the
            applicant;
              (4) the financial viability of the plan and any
            changes that are necessary to make the plan viable; and
              (5) whether assistance is necessary under this title
            and, if so, the amount of the assistance.
      (c) Contract.--The Secretary may contract with a third party
    (including those entities eligible to provide borrower training
    under section 359(b)) to conduct loan assessments under this
    section.
      (d) Review of Loans.--
              (1) In general.--Loan assessments conducted under
            this section shall include [annual review of direct
            loans, and periodic review (as determined necessary by
            the Secretary) of guaranteed loans] periodic review (as
            determined by the Secretary) of direct and guaranteed
            loans, made under this title to assess the progress of
            a borrower in meeting the goals for the farm or ranch
            operation.
              (2) Contracts.--The Secretary may contract with an
            entity that is eligible to provide borrower training
            under section 359(b) to conduct loan reviews under
            paragraph (1).
              (3) Problem assessments.--If a borrower is delinquent
            in payments on a direct or guaranteed loan made under
            this title, the Secretary or the contracting entity
            shall determine the cause of, and action necessary to
            correct, the delinquency.
      (e) Guidelines.--The Secretary shall issue regulations
    providing guidelines for loan assessments conducted under this
    section.

    SEC. 361. SUPERVISED CREDIT.

       The Secretary shall provide adequate training to employees
    of the [Farmers Home Administration] Farm Service Agency on
    credit analysis and financial and farm management to--
              (1) better acquaint the employees with what
            constitutes adequate financial data on which to base a
            direct or guaranteed loan approval decision; and
              (2) ensure proper supervision of farmer program
            loans.

               *       *       *       *       *       *       *

    [SEC. 363. PROHIBITION ON USE OF LOANS FOR CERTAIN PURPOSES.

      [The Secretary shall not approve any loan under this title to
    drain, dredge, fill, level, or otherwise manipulate a wetland
    (as defined in section 1201(a)(16) of the Food Security Act of
    1985 (16 U.S.C. 3801(a)(16))), or to engage in any activity
    that results in impairing or reducing the flow, circulation, or
    reach of water, except in the case of activity related to the
    maintenance of previously converted wetlands, or in the case of
    such activity that is already commenced before November 28,
    1990. This section shall not apply to a loan made or guaranteed
    under this title for a utility line.]

    SEC. 363. PROHIBITION ON USE OF LOAN OR GRANT FOR CERTAIN PURPOSES.

      (a) In General.--The Secretary shall not approve any loan or
    grant under this title to drain, dredge, fill, or level, or
    otherwise manipulate a wetland (as defined in section
    1201(a)(16) of the Food Security Act of 1985 (16 U.S.C.
    3801(a)(16))), or to engage in any activity that results in
    impairing or reducing the flow, circulation, or reach of water,
    except in the case of activity related to the maintenance of
    previously converted wetlands, or in the case of such activity
    that commenced before November 29, 1990.
      (b) Exclusions.--
              (1) Utilities lines.--This section shall not apply to
            a loan made or guaranteed under this title for a
            utility line.
              (2) Permitted activities and projects.--This section
            shall not apply to a rural development loan made or
            guaranteed under section 306 or 306C of this Act for an
            activity or project for which the applicant or borrower
            has obtained or is required to obtain a permit from the
            Secretary of the Army, acting through the Chief of
            Engineers, under section 10 of the Act of March 3, 1899
            (33 U.S.C. 403; 30 Stat. 1151, chapter 425), or section
            404 of the Federal Water Pollution Control Act (33
            U.S.C. 1344).

               *       *       *       *       *       *       *

    SEC. 368. RURAL BUSINESS-COOPERATIVE SERVICE PROGRAMS TECHNICAL
                        ASSISTANCE AND TRAINING.

      (a) In General.--The Secretary may make grants to public
    bodies, private nonprofit corporations, economic development
    authorities, institutions of higher education, federally
    recognized Indian Tribes, and rural cooperatives for the
    purpose of providing or obtaining technical assistance and
    training to support funding applications for programs carried
    out by the Secretary, acting through the Administrator of the
    Rural Business-Cooperative Service.
      (b) Purposes.--A grant under subsection (a) may be used--
              (1) to assist communities in identifying and planning
            for business and economic development needs;
              (2) to identify public and private resources to
            finance business and small and emerging business needs;
              (3) to prepare reports and surveys necessary to
            request financial assistance for businesses in rural
            communities; and
              (4) to prepare applications for financial assistance.
      (c) Selection Priority.--In selecting recipients of grants
    under this section, the Secretary shall give priority to grants
    serving persistent poverty counties and high poverty
    communities, as determined by the Secretary.
      (d) Funding.--
              (1) In General.--There is authorized to be
            appropriated to carry out this section $5,000,000 for
            each of fiscal years [2019 through 2023] 2027 through
            2031, to remain available until expended.
              (2) Availability.--Any amounts authorized to be
            appropriated under paragraph (1) for any fiscal year
            that are not appropriated for that fiscal year may be
            appropriated for the immediately succeeding fiscal
            year.

               *       *       *       *       *       *       *

    SEC. 370. PROHIBITION UNDER RURAL DEVELOPMENT PROGRAMS.

      (a) Prohibition.--Assistance under any rural development
    program administered by [the Rural Development Administration,
    the Farmers Home Administration, the Rural Electrification
    Administration] Rural Development, the Farm Service Agency, the
    Rural Utilities Service, or any other agency of the Department
    of Agriculture shall not be conditioned on any requirement that
    the recipient of such assistance accept or receive electric
    service from any particular utility, supplier, or cooperative.
      (b) Ensuring Compliance.--The Secretary shall establish, by
    regulation, adequate safeguards to ensure that assistance under
    such rural development programs is not subject to such a
    condition. Such safeguards shall include periodic
    certifications and audits, and appropriate measures and
    sanctions against any person violating, or attempting to
    violate, the prohibition in subsection (a).
      (c) Regulations.--Not later than 6 months after the enactment
    of this section, the Secretary shall issue interim final
    regulations to ensure compliance with subsection (a).

               *       *       *       *       *       *       *

    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 [2008 through
            2023] 2027 through 2031.
              (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 September 30, [2023] 2031.

    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 is authorized to
    be appropriated to carry out this section $1,000,000 for each
    of fiscal years [2014 through 2023] 2027 through 2031.

    SEC. 379E. RURAL MICROENTREPRENEUR ASSISTANCE PROGRAM.

      (a) Definitions.--In this section:
              (1) 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).
              (2) Microentrepreneur.--The term
            ``microentrepreneur'' means an owner and operator, or
            prospective owner and operator, of a rural
            microenterprise who is unable to obtain sufficient
            training, technical assistance, or credit other than
            under this section, as determined by the Secretary.
              (3) Microenterprise development organization.--The
            term ``microenterprise development organization'' means
            an organization that--
                      (A) is--
                              (i) a nonprofit entity;
                              (ii) an Indian tribe, the tribal
                            government of which certifies to the
                            Secretary that--
                                      (I) no microenterprise
                                    development organization serves
                                    the Indian tribe; and
                                      (II) no rural
                                    microentrepreneur assistance
                                    program exists under the
                                    jurisdiction of the Indian
                                    tribe; or
                              (iii) a public institution of higher
                            education;
                      (B) provides training and technical
                    assistance to rural microentrepreneurs;
                      (C) facilitates access to capital or another
                    service described in subsection (b) for rural
                    microenterprises; and
                      (D) has a demonstrated record of delivering
                    services to rural microentrepreneurs, or an
                    effective plan to develop a program to deliver
                    services to rural microentrepreneurs, as
                    determined by the Secretary.
              (4) Microloan.--The term ``microloan'' means a
            business loan of not more than [$50,000] $75,000 that
            is provided to a rural microenterprise.
              (5) Program.--The term ``program'' means the rural
            microentrepreneur assistance program established under
            subsection (b).
              (6) Rural microenterprise.--The term ``rural
            microenterprise'' means--
                      (A) a sole proprietorship located in a rural
                    area; or
                      (B) a business entity with not more than 10
                    full-time-equivalent employees located in a
                    rural area.
      (b) Rural Microentrepreneur Assistance Program.--
              (1) Establishment.--The Secretary shall establish a
            rural microentrepreneur assistance program to provide
            loans and grants to support microentrepreneurs in the
            development and ongoing success of rural
            microenterprises.
              (2) Purpose.--The purpose of the program is to
            provide microentrepreneurs with--
                      (A) the skills necessary to establish new
                    rural microenterprises; and
                      (B) continuing technical and financial
                    assistance related to the successful operation
                    of rural microenterprises.
              (3) Loans.--
                      (A) In general.--The Secretary shall make
                    loans to microenterprise development
                    organizations for the purpose of providing
                    fixed interest rate microloans to
                    microentrepreneurs for startup and growing
                    rural microenterprises.
                      (B) Loan terms.--A loan made by the Secretary
                    to a microenterprise development organization
                    under this paragraph shall--
                              (i) be for a term not to exceed 20
                            years; and
                              (ii) bear an annual interest rate of
                            at least 1 percent.
                      (C) Loan loss reserve fund.--The Secretary
                    shall require each microenterprise development
                    organization that receives a loan under this
                    paragraph to--
                              (i) establish a loan loss reserve
                            fund; and
                              (ii) maintain the reserve fund in an
                            amount equal to at least 5 percent of
                            the outstanding balance of such loans
                            owed by the microenterprise development
                            organization, until all obligations
                            owed to the Secretary under this
                            paragraph are repaid.
                      (D) Deferral of interest and principal.--The
                    Secretary may permit the deferral of payments
                    on principal and interest due on a loan to a
                    microenterprise development organization made
                    under this paragraph for a 2-year period
                    beginning on the date the loan is made.
              (4) Grants.--
                      (A) Grants to support rural microenterprise
                    development.--
                              (i) In general.--The Secretary shall
                            make grants to microenterprise
                            development organizations to--
                                      (I) provide training,
                                    operational support, business
                                    planning, and market
                                    development assistance, and
                                    other related services to rural
                                    microentrepreneurs; and
                                      (II) carry out such other
                                    projects and activities as the
                                    Secretary determines
                                    appropriate to further the
                                    purposes of the program.
                              (ii) Selection.--In making grants
                            under clause (i), the Secretary shall--
                                      (I) place an emphasis on
                                    microenterprise development
                                    organizations that serve
                                    microentrepreneurs that are
                                    located in rural areas that
                                    have suffered significant
                                    outward migration, as
                                    determined by the Secretary;
                                    and
                                      (II) ensure, to the maximum
                                    extent practicable, that grant
                                    recipients include
                                    microenterprise development
                                    organizations--
                                              (aa) of varying
                                            sizes; and
                                              (bb) that serve
                                            racially and ethnically
                                            diverse populations.
                      (B) Grants to assist microentrepreneurs.--
                              (i) In general.--The Secretary shall
                            make grants to microenterprise
                            development organizations to provide
                            marketing, management, and other
                            technical assistance to
                            microentrepreneurs that--
                                      (I) received a loan from the
                                    microenterprise development
                                    organization under paragraph
                                    (3); or
                                      (II) are seeking a loan from
                                    the microenterprise development
                                    organization under paragraph
                                    (3).
                              (ii) Amount of grant.--A
                            microenterprise development
                            organization shall be eligible to
                            receive an annual grant under this
                            subparagraph in an amount equal to not
                            less than 20 percent and not more than
                            25 percent of the total outstanding
                            balance of microloans made by the
                            microenterprise development
                            organization under paragraph (3), as of
                            the date the grant is awarded, subject
                            to--
                                      (I) satisfactory performance
                                    by the microenterprise
                                    development organization under
                                    this section, and
                                      (II) the availability of
                                    funding.
                      (C) Administrative expenses.--Not more than
                    10 percent of a grant received by a
                    microenterprise development organization for a
                    fiscal year under this paragraph may be used to
                    pay administrative expenses.
      (c) Administration.--
              (1) Cost share.--
                      (A) Federal share.--Subject to subparagraph
                    (B), the Federal share of the cost of a project
                    funded under this section [shall not exceed 75
                    percent] may be up to 100 percent, and a loan
                    under this section for a project may be used to
                    cover not more than 50 percent of any
                    renovation, construction, or related costs of
                    real estate improvements under the project.
                      (B) Matching requirement.--As a condition of
                    any grant made under this subparagraph, the
                    Secretary shall require the microenterprise
                    development organization to match not less than
                    15 percent (or 5 percent, in the case of a
                    microenterprise development organization
                    serving a persistent poverty county, as
                    determined by the Secretary) of the total
                    amount of the grant in the form of matching
                    funds, indirect costs, or in-kind goods or
                    services.
                      (C) Form of non-federal share.--The non-
                    Federal share of the cost of a project funded
                    under this section may be provided--
                              (i) in cash (including through fees,
                            grants (including community development
                            block grants), and gifts); or
                              (ii) in the form of in-kind
                            contributions.
              (2) Oversight.--At a minimum, not later than December
            1 of each fiscal year, a microenterprise development
            organization that receives a loan or grant under this
            section shall provide to the Secretary such information
            as the Secretary may require to ensure that assistance
            provided under this section is used for the purposes
            for which the loan or grant was made.
      (d) Authorization of Appropriations.--There are authorized to
    be appropriated to carry out this section $20,000,000 for each
    of fiscal years [2019 through 2023] 2027 through 2031.

    SEC. 379G. HEALTH CARE SERVICES.

      (a) Purpose.--The purpose of this section is to address the
    continued unmet health needs in the Delta region through
    cooperation among health care professionals, institutions of
    higher education, research institutions, and other individuals
    and entities in the region.
      (b) Definition of Eligible Entity.--In this section, the term
    ``eligible entity'' means a consortium of regional institutions
    of higher education, academic health and research institutes,
    and economic development entities located in the Delta region
    that have experience in addressing the health care issues in
    the region.
      (c) Grants.--To carry out the purpose described in subsection
    (a), the Secretary may award a grant to an eligible entity for
    -
              (1) the development of -
                      (A) health care services;
                      (B) health education programs; and
                      (C) health care job training programs; and
              (2) the development and expansion of public health-
            related facilities in the Delta region to address
            longstanding and unmet health needs of the region.
      (d) Use.--As a condition of the receipt of the grant, the
    eligible entity shall use the grant to fund projects and
    activities described in subsection (c), based on input
    solicited from local governments, public health care providers,
    and other entities in the Delta region.
      (e) Authorization of Appropriations.--There is authorized to
    be appropriated to the Secretary to carry out this section,
    $3,000,000 for each of fiscal years [2008 through 2023] 2027
    through 2031.

    SEC. 379H. STRATEGIC ECONOMIC AND COMMUNITY DEVELOPMENT.

      (a) In General.--In the case of any program under this title
    or administered by the Secretary, acting through the rural
    development mission area, as determined by the Secretary
    (referred to in this section as a `covered program'), the
    Secretary shall give priority to an application for a project
    that, as determined and approved by the Secretary--
              (1) meets the applicable eligibility requirements of
            this title or the other applicable authorizing law;
              (2) will be carried out in a rural area; and
              (3) supports the implementation of a strategic
            community investment plan described in subsection (d)
            on a multisectoral and multijurisdictional basis, to
            include considerations for improving and expanding
            broadband services as needed.
      (b) Reserve.--
              (1) In General.--Subject to paragraph (2), the
            Secretary shall reserve not more than 15 percent of the
            funds made available for a fiscal year for covered
            programs for projects that support the implementation
            of a strategic community investment plan described in
            subsection (d) on a multisectoral and
            multijurisdictional basis.
              (2) Period.--Any funds reserved under paragraph (1)
            shall only be reserved for the 1-year period beginning
            on the date on which the funds were first made
            available, as determined by the Secretary.
      (c) Approved Applications.--
              (1) In general.--Subject to paragraph (2), any
            applicant who submitted an application under a covered
            program that was approved before the date of enactment
            of this section may amend the application to qualify
            for the funds reserved under subsection (b).
              (2) Rural Utilities.--Any applicant who submitted an
            application under paragraph (2), (14), or (24) of
            section 306(a),or section 306A or 310B(b), that was
            approved by the Secretary before the date of enactment
            of this section shall be eligible for the funds
            reserved under subsection (b)--
                      (A) on the same basis as an application
                    submitted under this section; and
                      (B) until September 30, 2019.
      (d) Strategic Community Investment Plans.--
              (1) In general.--The Secretary shall provide
            assistance to rural communities in developing strategic
            community investment plans.
              (2) Plans.--A strategic community investment plan
            described in paragraph (1) shall include--
                      (A) a variety of activities designed to
                    facilitate the vision of a rural community for
                    the future, including considerations for
                    improving and expanding broadband services as
                    needed;
                      (B) participation by multiple stakeholders,
                    including local and regional partners;
                      (C) leverage of applicable regional
                    resources;
                      (D) investment from strategic partners, such
                    as--
                              (i) private organizations;
                              (ii) cooperatives;
                              (iii) other government entities;
                              (iv) Indian Tribes; and
                              (v) philanthropic organizations;
                      (E) clear objectives with the ability to
                    establish measurable performance metrics;
                      (F) action steps for implementation; and
                      (G) any other elements necessary to ensure
                    that the plan results in a comprehensive and
                    strategic approach to rural economic
                    development, as determined by the Secretary.
              (3) Coordination.--The Secretary shall coordinate
            with Indian Tribes and local, State, regional, and
            Federal partners to develop strategic community
            investment plans under this subsection.
              (4) Authorization of Appropriations.--There is
            authorized to be appropriated to carry out this
            subsection $5,000,000for each of fiscal years [2019
            through 2023] 2027 through 2031, to remain available
            until expended.

    SEC. 379I. RURAL INNOVATION STRONGER ECONOMY GRANT PROGRAM.

      (a) Definitions.--In this section:
              (1) Eligible entity.--The term ``eligible entity''
            means a rural jobs accelerator partnership established
            after the date of enactment of this section that--
                      (A) organizes key community and regional
                    stakeholders into a working group that--
                              (i) focuses on the shared goals and
                            needs of the industry clusters that are
                            objectively identified as existing,
                            emerging, or declining;
                              (ii) represents a region defined by
                            the partnership in accordance with
                            subparagraph (B);
                              (iii) includes 1 or more
                            representatives of--
                                      [(I) an institution of higher
                                    education (as defined in
                                    section 101 of the Higher
                                    Education Act of 1965 (20
                                    U.S.C. 1001));]
                                      (I) an institution of higher
                                    education (as defined in
                                    section 101, and subparagraphs
                                    (A) and (B) of section
                                    102(a)(1), of the Higher
                                    Education Act of 1965 (20
                                    U.S.C. 1001, 1002(a)(1)));
                                      (II) an area career and
                                    technical education school (as
                                    defined in section 3 of the
                                    Carl D. Perkins Career and
                                    Technical Education Act of 2006
                                    (20 U.S.C. 2302));
                                      [(II)] (III) a private
                                    entity; or
                                      [(III)] (IV) a government
                                    entity; [and]
                              (iv) has, as a lead applicant--
                                      (I) a District Organization
                                    (as defined in section 300.3 of
                                    title 13, Code of Federal
                                    Regulations (or a successor
                                    regulation));
                                      (II) an Indian tribe (as
                                    defined in section 4 of the
                                    Indian Self-Determination and
                                    Education Assistance Act (25
                                    U.S.C. 5304)), or a consortium
                                    of Indian tribes;
                                      (III) a State or a political
                                    subdivision of a State,
                                    including a special purpose
                                    unit of a State or local
                                    government engaged in economic
                                    development activities, or a
                                    consortium of political
                                    subdivisions;
                                      [(IV) an institution of
                                    higher education (as defined in
                                    section 101 of the Higher
                                    Education Act of 1965 (20
                                    U.S.C. 1001)) or a consortium
                                    of institutions of higher
                                    education; or]
                                      (IV) an institution of higher
                                    education (as defined in
                                    section 101, and subparagraphs
                                    (A) and (B) of section
                                    102(a)(1), of the Higher
                                    Education Act of 1965 (20
                                    U.S.C. 1001, 1002(a)(1)));
                                      (V) an area career and
                                    technical education school (as
                                    defined in section 3 of the
                                    Carl D. Perkins Career and
                                    Technical Education Act of 2006
                                    (20 U.S.C. 2302)); or
                                      [(V)] (VI) a public or
                                    private nonprofit organization;
                                    and
                              (v) in the case of a career pathway
                            program, includes 1 or more members of
                            the local workforce development board
                            established under section 107 of the
                            Workforce Innovation and Opportunity
                            Act and serving the region to ensure
                            the program is integrated with the
                            activities carried out by the local
                            workforce development board; and
                      (B) subject to approval by the Secretary,
                    may--
                              (i) serve a region that is--
                                      (I) a single jurisdiction; or
                                      (II) if the region is a rural
                                    area, multijurisdictional; and
                              (ii) define the region that the
                            partnership represents, if the region--
                                      (I) is large enough to
                                    contain critical elements of
                                    the industry cluster
                                    prioritized by the partnership;
                                      (II) is small enough to
                                    enable close collaboration
                                    among members of the
                                    partnership;
                                      (III) includes a majority of
                                    communities that are located
                                    in--
                                              (aa) a
                                            nonmetropolitan area
                                            that qualifies as a
                                            low-income community
                                            (as defined in section
                                            45D(e) of the Internal
                                            Revenue Code of 1986);
                                            and
                                              (bb) an area that has
                                            access to or has a plan
                                            to achieve broadband
                                            service (within the
                                            meaning of title VI of
                                            the Rural
                                            Electrification Act of
                                            1936 (7 U.S.C. 950bb et
                                            seq.)); and
                                      (IV)(aa) has a population of
                                    50,000 or fewer inhabitants; or
                                      (bb) for a region with a
                                    population of more than 50,000
                                    inhabitants, is the subject of
                                    a positive determination by the
                                    Secretary with respect to a
                                    rural-in-character petition,
                                    including such a petition
                                    submitted concurrently with the
                                    application of the partnership
                                    for a grant under this section.
              (2) Industry cluster.--The term ``industry cluster''
            means a broadly defined network of interconnected firms
            and supporting institutions in related industries that
            accelerate innovation, business formation, and job
            creation by taking advantage of assets and strengths of
            a region in the business environment.
              (3) High-wage job.--The term ``high-wage job'' means
            a job that provides a wage that is greater than the
            median wage for the applicable region, as determined by
            the Secretary.
              (4) Jobs accelerator.--The term ``jobs accelerator''
            means a jobs accelerator center or program located in
            or serving a low-income rural community that may
            provide co-working space, in-demand skills training,
            entrepreneurship support, and any other services
            described in subsection (d)(1)(B).
              (5) Small and disadvantaged business.--The term
            ``small and disadvantaged business'' has the meaning
            given the term ``small business concern owned and
            controlled by socially and economically disadvantaged
            individuals'' in section 8(d)(3)(C) of the Small
            Business Act (15 U.S.C. 637(d)(3)(C)).
              (6) Career pathway.--The term ``career pathway'' has
            the meaning given the term in section 3(7) of the
            Workforce Innovation and Opportunity Act (29 U.S.C.
            3102(7)).
              (7) Industry or sector partnership.--The term
            ``industry or sector partnership'' has the meaning
            given the term in section 3 of the Workforce Innovation
            and Opportunity Act (29 U.S.C. 3102).
      (b) Establishment.--
              (1) In general.--The Secretary shall establish a
            grant program under which the Secretary shall award
            grants, on a competitive basis, to eligible entities to
            establish jobs accelerators or carry out career pathway
            training programs or industry or sector partnerships
            aligned with industry sectors in rural communities,
            including related programming, that--
                      (A) improve the ability of distressed rural
                    communities to create high-wage jobs,
                    accelerate the formation of new businesses with
                    high-growth potential, and strengthen regional
                    economies, including by helping to build
                    capacity in the applicable region to achieve
                    those goals; [and]
                      (B) help rural communities identify and
                    maximize local assets and connect to regional
                    opportunities, networks, and industry clusters
                    that demonstrate high growth potential[.];
                      (C) address workforce challenges, including
                    worker displacement, faced by specific industry
                    sectors in rural communities; and
                      (D) promote targeted skills development and
                    training initiatives to stimulate innovation
                    and enhance economic development in rural
                    regions.
              (2) Cost-sharing.--
                      (A) In general.--The Federal share of the
                    cost of any activity carried out using a grant
                    made under paragraph (1) shall be not greater
                    than 80 percent.
                      (B) In-kind contributions.--The non-Federal
                    share of the total cost of any activity carried
                    out using a grant made under paragraph (1) may
                    be in the form of donations or in-kind
                    contributions of goods or services fairly
                    valued.
              (3) Selection criteria.--In selecting eligible
            entities to receive grants under paragraph (1), the
            Secretary shall consider--
                      (A) the commitment of participating core
                    stakeholders in the jobs accelerator
                    partnership, including a demonstration that--
                              (i) investment organizations,
                            including venture development
                            organizations, venture capital firms,
                            revolving loan funders, angel
                            investment groups, community lenders,
                            community development financial
                            institutions, rural business investment
                            companies, small business investment
                            companies (as defined in section 103 of
                            the Small Business Investment Act of
                            1958 (15 U.S.C. 662)), philanthropic
                            organizations, and other institutions
                            focused on expanding access to capital,
                            are committed partners in the jobs
                            accelerator partnership and willing to
                            potentially invest in projects emerging
                            from the jobs accelerator, career
                            pathway programs, or industry or sector
                            partnerships; and
                              (ii) institutions of higher
                            education, applied research
                            institutions, workforce development
                            entities, and community-based
                            organizations are willing to partner
                            with the jobs accelerator , career
                            pathway programs, or industry or sector
                            partnerships to provide workers with
                            skills relevant to the industry cluster
                            needs of the region, with an emphasis
                            on the use of on-the-job training,
                            registered apprenticeships, leadership
                            development, customized training,
                            classroom occupational training, or
                            incumbent worker training;
                      (B) the ability of the eligible entity to
                    provide the non-Federal share as required under
                    paragraph (2);
                      (C) the identification of a targeted industry
                    cluster;
                      (D) the ability of the partnership to link
                    rural communities to markets, networks,
                    industry clusters, and other regional
                    opportunities and assets;
                      (E) other grants or loans of the Secretary
                    and other Federal agencies that the jobs
                    accelerator would be able to leverage; and
                      (F) prospects for the proposed center and
                    related programming to have sustainability
                    beyond the full maximum length of assistance
                    under this subsection, including the maximum
                    number of renewals[.]; and
                      (G) the ability of the eligible entity to
                    carry out activities to address the issues of
                    worker displacement, an aging workforce, and
                    youth migration.
              (4) Grant term and renewals.--
                      (A) Term.--The initial term of a grant under
                    paragraph (1) shall be 4 years.
                      (B) Renewal.--The Secretary may extend the
                    term of a grant under paragraph (1) for an
                    additional period of not longer than 2 years if
                    the Secretary is satisfied, using the
                    evaluation under subsection (e)(2), that the
                    grant recipient has successfully established a
                    jobs accelerator and related programming.
              [(5) Geographic distribution.--To the maximum extent
            practicable, the Secretary shall provide grants under
            paragraph (1) for jobs accelerators and related
            programming in not fewer than 25 States at any time.]
              (5) Geographic distribution.--The Secretary shall
            ensure regional diversity of recipients of grants or
            participants in providing grants under paragraph (1)
            for jobs accelerators, career pathway programs, and
            related programming.
      (c) Grant Amount.--A grant awarded under subsection (b) may
    be in an amount equal to--
              (1) not less than $500,000; and
              (2) not more than $2,000,000.
      (d) Use of Funds.--
              (1) In general.--Subject to paragraph (2), funds from
            a grant awarded under subsection (b) may be used--
                      (A) to construct, purchase, or equip a
                    building to serve as an innovation center;
                      (B) to support programs to be carried out at,
                    or in direct partnership with, the jobs
                    accelerator that support the objectives of the
                    jobs accelerator, including--
                              (i) linking rural communities and
                            entrepreneurs to markets, networks,
                            industry clusters, and other regional
                            opportunities to support high-wage job
                            creation, new business formation,
                            business expansion, and economic
                            growth;
                              (ii) integrating small businesses
                            into a supply chain;
                              (iii) creating or expanding
                            commercialization activities for new
                            business formation;
                              (iv) identifying and building assets
                            in rural communities that are crucial
                            to supporting regional economies;
                              (v) facilitating the repatriation of
                            high-wage jobs to the United States;
                              (vi) supporting the deployment of
                            innovative processes, technologies, and
                            products;
                              (vii) enhancing the capacity of small
                            businesses in regional industry
                            clusters, including small and
                            disadvantaged businesses;
                              (viii) increasing United States
                            exports and business interaction with
                            international buyers and suppliers;
                              (ix) developing the skills and
                            expertise of local workforces,
                            entrepreneurs, and institutional
                            partners to meet the needs of employers
                            and prepare workers for high-wage jobs
                            in the identified industry clusters,
                            including the upskilling of incumbent
                            workers;
                              (x) ensuring rural communities have
                            the capacity and ability to carry out
                            projects relating to housing, community
                            facilities, infrastructure, or
                            community and economic development to
                            support regional industry cluster
                            growth; or
                              (xi) any other activities that the
                            Secretary may determine to be
                            appropriate[.]; and
                      (C) to support career pathway programs or
                    industry or sector partnerships to be carried
                    out within industries in rural communities,
                    including--
                              (i) telecommunications or broadband
                            services;
                              (ii) water, waste water, or disposal
                            services;
                              (iii) electric supply services;
                              (iv) forestry and logging operations;
                              (v) conservation practices and
                            management;
                              (vi) health care and child care;
                              (vii) manufacturing;
                              (viii) agribusiness related to
                            production, processing, and
                            distribution;
                              (ix) veterinarian services; and
                              (x) any other sectors identified by
                            the local workforce development board
                            serving the region to be an in-demand
                            industry sector or occupation, as
                            defined in section 3 of the Workforce
                            Innovation and Opportunity Act.
              (2) Requirement.--
                      (A) In general.--Subject to subparagraph (B),
                    not more than 10 percent of a grant awarded
                    under subsection (b) shall be used for indirect
                    costs associated with administering the grant.
                      (B) Increase.--The Secretary may increase the
                    percentage described in subparagraph (A) on a
                    case-by-case basis.
      (e) Annual Activity Report and Evaluation.--Not later than 1
    year after receiving a grant under this section, and annually
    thereafter for the duration of the grant, an eligible entity
    shall--
              (1) report to the Secretary on the activities funded
            with the grant; [and]
              (2)(A) evaluate the progress that the eligible entity
            has made toward the strategic objectives identified in
            the application for the grant; and
              (B) measure that progress using performance measures
            during the project period, which may include--
                      (i) high-wage jobs created;
                      (ii) high-wage jobs retained;
                      (iii) private investment leveraged;
                      (iv) businesses improved;
                      (v) new business formations;
                      (vi) new products or services commercialized;
                      (vii) improvement of the value of existing
                    products or services under development;
                      (viii) regional collaboration, as measured by
                    such metrics as--
                              (I) the number of organizations
                            actively engaged in the industry
                            cluster;
                              (II) the number of symposia held by
                            the industry cluster, including
                            organizations that are not located in
                            the immediate region defined by the
                            partnership; and
                              (III) the number of further
                            cooperative agreements;
                      (ix) the number of education and training
                    activities relating to innovation;
                      (x) the number of jobs relocated from outside
                    of the United States to the region;
                      (xi) the amount and number of new equity
                    investments in industry cluster firms;
                      (xii) the amount and number of new loans to
                    industry cluster firms;
                      (xiii) the dollar increase in exports
                    resulting from the project activities;
                      (xiv) the percentage of employees for which
                    training was provided;
                      (xv) improvement in sales of participating
                    businesses;
                      (xvi) improvement in wages paid at
                    participating businesses;
                      (xvii) improvement in income of participating
                    workers; [or]
                      (xviii) the number of individuals who have
                    completed skills development, recognized
                    postsecondary credentials, or gained
                    specialized education through career pathways
                    programs or industry or sector partnerships; or
                      [(xviii)] (xix) any other measure the
                    Secretary determines to be appropriate[.]; and
              (3) in the case of a career pathway program or
            industry or sector partnership, report to the Secretary
            the employment and earnings outcomes for individuals
            who participate in the program on the indicators
            described in subclauses (I) through (III) of section
            116(b)(2)(A)(i) of the Workforce Innovation and
            Opportunity Act.
      (f) Authorization of Appropriations.--There is authorized to
    be appropriated to carry out this section $10,000,000 for each
    of fiscal years [2019 through 2023] 2027 through 2031.

    SEC. 379J. RURAL DEVELOPMENT INNOVATION CENTER.

      (a) Definition of Rural Development Mission Areas.--In this
    section, the term ``Rural Development Mission Areas'' means the
    agencies under the Rural Development Agency at the Department
    of Agriculture, including the Rural Utilities Service, Rural
    Business-Cooperative Service, and the Rural Housing Service.
      (b) Establishment.--There is hereby established within the
    Rural Development Mission Areas a Rural Development Innovation
    Center (the ``Innovation Center'') to promote and facilitate
    innovation in the administration and implementation of rural
    development programs and initiatives.
      (c) Functions.--The Innovation Center shall--
              (1) review all processes for Rural Development
            Mission Area programs to identify inefficiencies,
            redundancies, and barriers to access, including--
                      (A) unnecessary delays in loan and grant
                    applications processing and approvals;
                      (B) high application costs; and
                      (C) deficiencies in technical assistance for
                    programs;
              (2) establish and maintain an ongoing public process
            for public and private stakeholders to provide
            perspectives on the challenges faced when applying for,
            utilizing, or participating in Rural Development
            Mission Area programs;
              (3) identify and assess any innovative strategies and
            collaborative models to enhance the efficiency and
            effectiveness of rural development programs and
            initiatives;
              (4) foster and maintain partnerships with public and
            private stakeholders to leverage expertise and
            resources for the Rural Development Mission Areas;
              (5) promote cross-agency collaborations and identify
            best practices in rural economic development;
              (6) identify and implement technological solutions
            and software applications to improve the effectiveness
            and efficiency of Rural Development Mission Area
            programs, including enhancing data management systems;
              (7) conduct research, analysis, and evaluation to
            modernize, simplify, and improve Rural Development
            Mission Area programs, and ensure that the programs are
            accessible, transparent, and user-friendly; and
              (8) disseminate information, guidance, and training
            materials to Rural Development Mission Area personnel
            and stakeholders on innovative rural development
            practices and opportunities.
      (d) Modernization Plan.--The Innovation Center shall develop,
    and periodically update, a modernization plan to facilitate
    innovation in administering and implementing rural development
    programs and initiatives that--
              (1) outlines strategies aimed at harnessing the
            potential of emerging technologies for program delivery
            and overall service;
              (2) enhances program efficiencies by identifying and
            implementing measures to streamline program and
            administrative processes, reduce redundancies, and
            optimize resource allocation;
              (3) expands the availability and accessibility of
            digital services, leveraging digital platforms and
            tools to broaden the reach of the programs and improve
            the overall user experience for rural stakeholders;
              (4) integrates data-driven solutions to optimize
            program delivery and maximize impact and effectiveness
            of the efforts in rural development; and
              (5) establishes periodic milestones and goals to
            track the progress of the modernization plan.
      (e) Report.--The Secretary shall submit an annual report to
    the Committee on Agriculture of the House of Representatives
    and the Committee on Agriculture, Nutrition, and Forestry of
    the Senate on--
              (1) the activities and accomplishments of the
            Innovation Center, including progress in advancing
            rural development innovation and the outcome achieved;
              (2) a comprehensive working plan designed to actively
            engage public and private stakeholders, as described in
            subsection (c)(2); and
              (3) the progress on the modernization plan described
            in subsection (d).

               *       *       *       *       *       *       *

                 Subtitle H--Rural Business Investment Program

               *       *       *       *       *       *       *

    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) Time frame.--Each rural business investment
            company shall have a period of 2 years to meet the
            capital requirements of this subsection.
              (4) 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] urban
                    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) Investment.--
              (1) 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:
                      (A) Any bank or savings association the
                    deposits of which are insured under the Federal
                    Deposit Insurance Act (12 U.S.C. 1811 et seq.),
                    including an investment pool created entirely
                    by such bank or savings association.
                      (B) Any Farm Credit System institution
                    described in section 1.2(a) of the Farm Credit
                    Act of 1971 (12 U.S.C. 2002(a)).
              (2) Limitation on requirements.--The Secretary may
            not require that an entity described in paragraph (1)
            provide investment or capital that is not required of
            other companies eligible to apply to operate as a rural
            business investment company under section 384D(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
    [50] 75 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. 384S. AUTHORIZATION OF APPROPRIATIONS.

      There is authorized to be appropriated to carry out this
    subtitle $20,000,000 for each of fiscal years [2014 through
    2023] 2027 through 2031.

                                  ----------

                            FARM CREDIT ACT OF 1971

               *       *       *       *       *       *       *

                          TITLE I--FARM CREDIT BANKS

               *       *       *       *       *       *       *

    SEC. 1.9. ELIGIBILITY.

       The credit and financial services authorized in this title
    may be made available to persons who are or become stockholders
    or members of the bank or associations in the district, and who
    are--
              (1) bona fide farmers, ranchers, or producers or
            harvesters of aquatic products;
              (2) persons furnishing to farmers and ranchers farm-
            related services directly related to their on-farm
            operating needs; [or]
              (3) persons furnishing to producers or harvesters of
            aquatic products services directly related to their
            operating needs; or
              [(3)] (4) owners of rural homes.

               *       *       *       *       *       *       *

    SEC. 1.11. PURPOSES FOR EXTENSIONS OF CREDIT.

      (a) Agricultural or Aquatic Purposes.--
              (1) In general.--Loans made by a Farm Credit Bank to
            farmers, ranchers, and producers or harvesters of
            aquatic products may be for any agricultural or aquatic
            purpose and other credit needs of the applicant,
            including financing for basic processing and marketing
            directly related to the applicant's operations and
            those of other eligible farmers, ranchers, and
            producers or harvesters of aquatic products, except
            that the operations of the applicant shall supply some
            portion of the total processing or marketing for which
            financing is extended.
              (2) Limitation on loans for basic processing and
            marketing operations.--The aggregate of the financing
            provided by any Farm Credit Bank for basic processing
            and marketing directly related to the operations of
            farmers, ranchers, and producers or harvesters of
            aquatic products, if the operations of the applicant
            supply less than 20 percent of the total processing or
            marketing for which financing is extended, shall not
            exceed 15 percent of the total of all outstanding loans
            of such bank.
      (b) Rural Housing Financing.--
              (1) In general.--Loans and discounts may be made to
            rural residents for rural housing financing under
            regulations of the Farm Credit Administration.
              (2) Limitations.--Rural housing financed under this
            title shall be for single-family, moderate-priced
            dwellings and their appurtenances not inconsistent with
            the general quality and standards of housing existing
            in, or planned or recommended for, the rural area where
            it is located, except that a Farm Credit Bank may not
            at any one time have a total amount of loans
            outstanding for such rural housing to persons other
            than farmers or ranchers in amounts exceeding 15
            percent of the total of all loans outstanding in such
            bank.
              (3) Rural areas.--For rural housing purposes under
            this section the term ``rural areas'' shall not be
            defined to include any city or village having a
            population in excess of 2,500 inhabitants.
      (c) Farm-Related Services.--
              (1) In general.--Loans to persons furnishing farm-
            related services to farmers and ranchers directly
            related to their on-farm operating needs and to persons
            furnishing services directly related to the operating
            needs of producers or harvesters of aquatic products
            may be made for the necessary capital structures and
            equipment and initial working capital for such
            services.
              (2) Facilities.--The banks may own and lease, or
            lease with option to purchase, to persons eligible for
            credit under this title or title II, equipment or
            facilities needed in the operations of such persons.

               *       *       *       *       *       *       *

                       TITLE II--FARM CREDIT ASSOCIATIONS

                  Subtitle A--Production Credit Associations

               *       *       *       *       *       *       *

    SEC. 2.4. SHORT- AND INTERMEDIATE-TERM LOANS; PARTICIPATION; OTHER
                        FINANCIAL ASSISTANCE; TERMS; CONDITIONS; INTEREST;
                        SECURITY.

      (a) Short- and Intermediate-Term Loans.--Each production
    credit association, under standards prescribed by the board of
    directors of the Farm Credit Bank of the district, may make,
    guarantee, or participate with other lenders in short- and
    intermediate-term loans and other similar financial assistance
    to--
              (1) bona fide farmers and ranchers and the producers
            or harvesters of aquatic products, for agricultural or
            aquatic purposes and other requirements of such
            borrowers, including financing for basic processing and
            marketing directly related to the operations of the
            borrower and those of other eligible farmers, ranchers,
            and producers or harvesters of aquatic products, except
            that the operations of the borrower shall supply some
            portion of the total processing or marketing for which
            financing is extended, except that the aggregate of the
            financing provided by any association for basic
            processing and marketing directly related to the
            operations of farmers, ranchers, and producers or
            harvesters of aquatic products, if the operations of
            the applicant supply less than 20 percent of the total
            processing or marketing for which financing is
            extended, shall not exceed 15 percent of the total of
            all outstanding loans of all associations in the
            district at the end of its preceding fiscal year;
              (2) rural residents for housing financing in rural
            areas, under regulations of the Farm Credit
            Administration; [and]
              (3) persons furnishing to farmers and ranchers farm-
            related services directly related to their on-farm
            operating needs[.]; and
              (4) persons furnishing to producers or harvesters of
            aquatic products services directly related to their
            operating needs.
      (b) Rural Housing.--
              (1) In general.--Rural housing financed under this
            subtitle shall be for single-family, moderate-priced
            dwellings and the appurtenances of such not
            inconsistent with the general quality and standards of
            housing existing in, or planned or recommended for, the
            rural area where it is located.
              (2) Limitation.--The aggregate of such housing loans
            in an association to persons other than farmers or
            ranchers shall not exceed 15 percent of the outstanding
            loans at the end of its preceding fiscal year except on
            prior approval by the Farm Credit Bank of the district.
            The aggregate of such housing loans in any farm credit
            district shall not exceed 15 percent of the outstanding
            loans of all associations in the district at the end of
            the preceding fiscal year.
              (3) Rural areas.--For rural housing purposes under
            this section the term ``rural areas'' shall not be
            defined to include any city or village having a
            population in excess of 2,500 inhabitants.
              (4) Equipment.--Each association may own and lease,
            or lease with option to purchase, to stockholders of
            the association equipment needed in the operations of
            the stockholder.
      (c) Interest Rates and Charges.--
              (1) In general.--Loans authorized in subsection (a)
            hereof shall bear such rate or rates of interest as are
            determined under standards prescribed by the board of
            the bank subject to the provisions of section 4.17 of
            this Act, and shall be made upon such terms,
            conditions, and upon such security, if any, as shall be
            authorized in such standards.
              (2) Setting of rates.--In setting rates and charges,
            it shall be the objective to provide the types of
            credit needed by eligible borrowers, at the lowest
            reasonable cost on a sound business basis, taking into
            account the cost of money to the association, necessary
            reserves and expenses of the association, and services
            provided to borrowers and members.
              (3) Varying rates.--The loan documents may provide
            for the interest rate or rates to vary from time to
            time during the repayment period of the loan in
            accordance with the rate or rates currently being
            charged by the association.
              (4) Prior approval.--Such standards may require prior
            approval of the bank on certain classes of loans, and
            may authorize a continuing commitment to a borrower of
            a line of credit.

               *       *       *       *       *       *       *

                       TITLE III--BANKS FOR COOPERATIVES

                        Part A--Banks for Cooperatives

               *       *       *       *       *       *       *

      Sec. 3.7. Lending Power.--(a) The banks for cooperatives are
    authorized to make loans and commitments to eligible
    cooperative associations and to extend to them other technical
    and financial assistance at any time (whether or not they have
    a loan from the bank outstanding), including but not limited to
    discounting notes and other obligations, guarantees, currency
    exchange necessary to service individual transactions that may
    be financed under subsection (b) of this section, collateral
    custody, or participation with other banks for cooperatives and
    commercial banks or other financial institutions in loans to
    eligible cooperatives, under such terms and conditions as may
    be determined to be feasible by the board of directors of each
    bank for cooperatives under regulations of the Farm Credit
    Administration. Each bank may own and lease, or lease with
    option to purchase, to stockholders eligible to borrow from the
    bank equipment needed in the operations of the stockholder and
    may make or participate in loans or commitments and extend
    other technical and financial assistance to other domestic
    parties for the acquisition of equipment and facilities to be
    leased to such stockholders for use in their operations in the
    United States.
      (b)(1) A bank for cooperatives is authorized to make or
    participate in loans and commitments to, and to extend other
    technical and financial assistance to a domestic or foreign
    party with respect to its transactions with an association that
    is a voting stockholder of the bank for the import of
    agricultural commodities or products thereof, agricultural
    supplies, or aquatic products through purchases, sales or
    exchanges, if the bank for cooperatives determines, under
    regulations of the Farm Credit Administration, that the voting
    stockholder will benefit substantially as a result of such
    loan, commitment, or assistance.
      (2)(A) A bank for cooperatives may make or participate in
    loans and commitments to, and extend other technical and
    financial assistance to--
              (i) any domestic or foreign party for the export,
            including (where applicable) the cost of freight, of
            agricultural commodities or products thereof,
            agricultural supplies, or aquatic products from the
            United States under policies and procedures established
            by the bank to ensure that the commodities, products,
            or supplies are originally sourced, where reasonably
            available, from one or more eligible cooperative
            associations described in section 3.8(a) on a priority
            basis, except that if the total amount of the balances
            outstanding on loans made by a bank under this clause
            that--
                      (I) are made to finance the export of
                    commodities, products, or supplies that are not
                    originally sourced from a cooperative, and
                      (II) are not guaranteed or insured, in an
                    amount equal to at least 95 percent of the
                    amount loaned, by a department, agency, bureau,
                    board, commission, or establishment of the
                    United States or a corporation wholly-owned
                    directly or indirectly by the United States,
            exceeds an amount that is equal to [50 percent of the
            bank's capital] 15 percent of the total assets of the
            bank, then a sufficient interest in the loans shall be
            sold by the bank for cooperatives to commercial banks
            and other non-System lenders to reduce the total amount
            of such outstanding balances to an amount not greater
            than [an amount equal to 50 percent of the bank's
            capital] 15 percent of the total assets of the bank;
            and
              (ii) except as provided in subparagraph (B), any
            domestic or foreign party in which an eligible
            cooperative association described in section 3.8(a)
            (including, for the purpose of facilitating its
            domestic business operations only, a cooperative or
            other entity described in section 3.8(b)(1)(A)) has an
            ownership interest, for the purpose of facilitating the
            domestic or foreign business operations of the
            association, except that if the ownership interest by
            an eligible cooperative association, or associations,
            is less than 50 percent, the financing shall be limited
            to the percentage held in the party by the association
            or associations.
      (B) A bank for cooperatives shall not use the authority
    provided in subparagraph (A)(ii) to provide financial
    assistance to a party for the purpose of financing the
    relocation of a plant or facility from the United States to
    another country.
      (3) A bank for cooperatives is authorized to provide such
    services as may be customary and normal in maintaining
    relationships with domestic or foreign entities to facilitate
    the activities specified in paragraphs (1) and (2), consistent
    with this Act.
              (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.
      (c) Loans, commitments, and assistance authorized by
    subsection (b) of this section shall be extended in accordance
    with policies adopted by the board of directors of the bank
    under regulations of the Farm Credit Administration.
      (d) The regulations of the Farm Credit Administration
    implementing subsection (b) of this section and the other
    provisions of this title relating to the authority under
    subsection (b) of this section may not confer upon the banks
    for cooperatives powers and authorities greater than those
    specified in this title. The Farm Credit Administration shall,
    during the formulation of such regulations, closely consult on
    a continuing basis with the Board of Governors of the Federal
    Reserve System to ensure that such regulations conform to
    national banking policies, objectives, and limitations.
      (e) Notwithstanding any other provision of this title, the
    banks for cooperatives shall not make or participate in loans
    or commitments for the purpose of financing speculative futures
    transactions by eligible borrowers in foreign currencies.
      (f) [The banks] (1) The banks  for cooperatives may, for the
    purpose of installing, maintaining, expanding, improving, or
    operating water and waste disposal facilities in rural areas,
    make and participate in loans and commitments and extending
    other technical and financial assistance to--
              [(1)] (A) cooperatives formed specifically for the
            purpose of establishing or operating such facilities;
            and
              [(2)] (B) public and quasi-public agencies and
            bodies, and other public and private entities that,
            under authority of State or local law, establish or
            operate such facilities.
      (2) Notwithstanding paragraph (1), a bank for cooperatives
    may make and participate in loans and commitments and provide
    technical and other financial assistance to cooperatives and
    any other public or private entity (except for the Federal
    Government) for the purpose of installing, maintaining,
    expanding, improving, or operating facilities in a rural area
    for the processing or disposal of waste from any source, the
    provision of telecommunication services, and producing
    electricity from any source for use or sale by the borrower.
     [For purposes] (3) For purposes  of this subsection, the term
    ``rural area'' means all territory of a State that is not
    within the outer boundary of any city or town having a
    population of more than 20,000 based on the latest decennial
    census of the United States, or in the case of such loans,
    commitments, and assistance that are guaranteed, the term rural
    area means an area described in section 343(a)(13)(A) of the
    Consolidated Farm and Rural Development Act (7 U.S.C.
    1991(a)(13)(A)).

               *       *       *       *       *       *       *

                 TITLE IV--PROVISIONS APPLICABLE TO TWO OR MORE
                     CLASSES OF INSTITUTIONS OF THE SYSTEM

               *       *       *       *       *       *       *

               Part D--Activities of Institutions of the System

               *       *       *       *       *       *       *

    SEC. 4.18B. ESSENTIAL COMMUNITY FACILITIES.

      (a) In General.--A Farm Credit Bank, direct lender
    association, or bank for cooperatives chartered under this Act
    may, for the purpose of making available capital to develop,
    build, maintain, improve, or provide related equipment or other
    support for essential community facilities in rural areas, make
    and participate in loans and commitments, and extend other
    technical and financial assistance for projects for essential
    community facilities eligible for financing under section
    306(a) of the Consolidated Farm and Rural Development Act.
      (b) Eligibility.--Only an entity eligible for financing under
    section 306(a) of the Consolidated Farm and Rural Development
    Act may receive financing or any other assistance under
    subsection (a) of this section.
      (c) Limitations.--
              (1) Financing.--A Farm Credit System institution
            described in subsection (a) shall not provide financing
            or assistance under this section in an aggregate amount
            that exceeds 15 percent of the total of all outstanding
            loans of the institution.
              (2) Offer requirement.--
                      (A) In general.--A Farm Credit System
                    institution shall not provide financing or
                    assistance under this section unless the
                    institution--
                              (i) has offered, under reasonable
                            terms and conditions acceptable to the
                            borrower involved, an interest in the
                            financing to at least 1 domestic
                            lending institution not referred to in
                            subsection (a) other than the
                            Department of Agriculture; and
                              (ii) has reported the offer to the
                            Farm Credit Administration.
                      (B) Rural community bank priority.--In
                    offering an interest in a financing to a
                    domestic lending institution described in
                    subparagraph (A)(i), the Farm Credit System
                    institution shall give priority to community
                    banks located in the service area of the
                    essential community facility being financed.
      (d) Annual Report to Congress.--Within 1 year after the date
    of the enactment of this section and annually thereafter, the
    Farm Credit Administration shall provide a report to the
    Committee on Agriculture of the House of Representatives and
    the Committee on Agriculture, Nutrition, and Forestry of the
    Senate on the activities undertaken pursuant to this section by
    Farm Credit System institutions during the period covered by
    the report, including through partnerships between such an
    institution and other lending institutions, which shall also be
    posted on the website of the Farm Credit Administration.

               *       *       *       *       *       *       *

    SEC. 4.21. FARM CREDIT SYSTEM REGULATION.

      (a) The Farm Credit Administration shall be the sole and
    independent regulator of the Farm Credit System with respect to
    activities subject to this Act.
      (b) Nothing in this section shall limit or affect any
    regulatory or other authority granted to the Farm Credit System
    Insurance Corporation under this Act.
      (c) A law enacted or rule promulgated after the date of the
    enactment of this section shall not be held to modify or
    supersede the exclusive authority provided by subsection (a),
    except to the extent that the enacted law does so expressly.

               *       *       *       *       *       *       *

               TITLE V--FARM CREDIT ADMINISTRATION ORGANIZATION

               *       *       *       *       *       *       *

                Part B--Farm Credit Administration Organization

               *       *       *       *       *       *       *

      Sec. 5.19. Examinations.--(a) Each institution of the System
    shall be examined by Farm Credit Administration examiners at
    such times as the Board may determine, but [in no event] not
    less than once during each 18-month period, except that the
    Farm Credit Administration, in its sole discretion, may extend
    the time period between mandatory examinations of institutions
    deemed by the Farm Credit Administration to be small, low-risk
    institutions to not more than 24 months. Such examinations may
    include, if appropriate, but are not limited to, an analysis of
    credit and collateral quality and capitalization of the
    institution, and appraisals of the effectiveness of the
    institution's management and application of policies governing
    the carrying out of this Act and regulations of the Farm Credit
    Administration and servicing all eligible borrowers.
    Examination of banks shall include an analysis of the
    compensation paid to the chief executive officer and the salary
    scales of the employees of the bank. At the direction of the
    Board, Farm Credit Administration examiners also shall make
    examinations of the condition of any organization, other than
    federally regulated financial institutions, to, for, or with
    which any institution of the System contemplates making a loan
    or discounting paper. For the purposes of this Act, examiners
    of the Farm Credit Administration shall be subject to the same
    requirements, responsibilities, and penalties as are applicable
    to examiners under the National Bank Act, the Federal Reserve
    Act, and Federal Deposit Insurance Act, and other provisions of
    law and shall have the same powers and privileges as are vested
    in such examiners by law.
      (b) Each institution of the System shall make and publish an
    annual report of condition as prescribed by the Farm Credit
    Administration. Each such report shall contain financial
    statements prepared in accordance with generally accepted
    accounting principles and contain such additional information
    as the Farm Credit Administration by regulation may require.
    Such financial statements of System institutions shall be
    audited by an independent public accountant.
      (c) The Farm Credit Administration may publish the report of
    examination of any System institution that does not, before the
    end of the 120th day after the date of notification of the
    recommendations and suggestions of the Farm Credit
    Administration, based on such examination, comply with such
    recommendations and suggestions to the satisfaction of the Farm
    Credit Administration. The Farm Credit Administration shall
    give notice of intention to publish in the event of such
    noncompliance at least 90 days before such publication. Such
    notice of intention may be given any time after such
    notification of recommendations and suggestions.
      (d) On receipt of a request made under section 5.59(b)(1)(B)
    with respect to a System institution, the Farm Credit
    Administration shall--
              (1) furnish for the confidential use of the Farm
            Credit System Insurance Corporation reports of
            examination of the institution and other reports or
            information on the institution; and
              (2)(A) examine, or obtain other information on, the
            institution and furnish for the confidential use of the
            Farm Credit System Insurance Corporation the report of
            the examination and such other information; or
              (B) if the Farm Credit Administration Board
            determines that compliance with the request would
            substantially impair the ability of the Farm Credit
            Administration to carry out the other duties and
            responsibilities of the Farm Credit Administration
            under this Act, notify the Board of Directors of the
            Farm Credit System Insurance Corporation that the Farm
            Credit Administration will be unable to comply with the
            request.
      (e) Sharing of Privileged and Confidential Information.--A
    System institution shall not be considered to have waived the
    confidentiality of a privileged communication with an attorney
    or an accountant if the System institution provides the content
    of the communication to the Farm Credit Administration pursuant
    to the supervisory or regulatory authorities of the Farm Credit
    Administration.

               *       *       *       *       *       *       *

               TITLE VIII--AGRICULTURAL MORTGAGE SECONDARY MARKET

    SEC. 8.0. DEFINITIONS.

       For purposes of this title:
              (1) Agricultural real estate.--The term
            ``agricultural real estate'' means--
                      (A) a parcel or parcels of land, or a
                    building or structure affixed to the parcel or
                    parcels, that--
                              (i) is used for the production of one
                            or more agricultural commodities or
                            products; and
                              (ii) consists of a minimum acreage or
                            is used in producing minimum annual
                            receipts, as determined by the
                            Corporation; or
                      (B) a principal residence that is a single
                    family, moderate-priced residential dwelling
                    located in a rural area, excluding--
                              (i) any community having a population
                            in excess of 2,500 inhabitants; and
                              (ii) any dwelling, excluding the land
                            to which the dwelling is affixed, with
                            a value exceeding $100,000 (as adjusted
                            for inflation).
              (2) Board.--The term ``Board''means the board if
            directors established under section 8.2.
              (3) Certified facility.--The term ``certified
            facility'' means--
                      (A) an agricultural mortgage marketing
                    facility that is certified under section 8.5;
                    or
                      (B) the Corporation and any affiliate
                    thereof.
              (4) Corporation.--The term ``Corporation'' means the
            Federal Agricultural Mortgage Corporation established
            in section 8.1.
              (5) Guarantee.--The term ``guarantee'' means the
            guarantee of timely payment of the principal and
            interest on securities representing interests in, or
            obligations backed by, pools of qualified loans, in
            accordance with this title.
              (6) Originator.--The term ``originator'' means any
            Farm Credit System institution, bank, insurance
            company, business and industrial development company,
            savings and loan association, association of
            agricultural producers, agricultural cooperative,
            commercial finance company, trust company, credit
            union, or other entity that originates and services
            agricultural mortgage loans.
              (7) Qualified loan.--The term ``qualified loan''
            means an obligation--
                      (A)(i) that is secured by a fee-simple or
                    leasehold mortgage with status as a first lien,
                    on agricultural real estate located in the
                    United States that is not subject to any legal
                    or equitable claims deriving from a preceding
                    fee-simple or leasehold mortgage;
                      (ii) of--
                              (I) a citizen or national of the
                            United States or an alien lawfully
                            admitted for permanent residence in the
                            United States; or
                              (II) a private corporation or
                            partnership whose members,
                            stockholders, or partners holding a
                            majority interest in the corporation or
                            partnership are individuals described
                            in subclause (I); and
                      (iii) of a person, corporation, or
                    partnership that has training or farming
                    experience that, under criteria established by
                    the Corporation, is sufficient to ensure a
                    reasonable likelihood that the loan will be
                    repaid according to its terms;
                      (B) that is the portion of a loan guaranteed
                    by the Secretary of Agriculture pursuant to the
                    Consolidated Farm and Rural Development Act (7
                    U.S.C. 1921 et seq.) or section 9007(c)(1) of
                    the Farm Security and Rural Investment Act of
                    2002 (7 U.S.C. 8107(c)(1)), except that--
                              (i) subsections (b) and (c) of
                            section 8.6, and sections 8.8 and 8.9,
                            shall not apply to the portion of a
                            loan guaranteed by the Secretary or to
                            an obligation, pool, or security
                            representing an interest in or
                            obligation backed by a pool of
                            obligations relating to the portion of
                            a loan guaranteed by the Secretary; and
                              (ii) the portion of a loan guaranteed
                            by the Secretary shall be considered to
                            meet all standards for qualified loans
                            for all purposes under this Act; or
                      (C) that is a loan, or an interest in a loan,
                    for an electric or telephone facility by a
                    cooperative lender to a borrower that has
                    received, or is eligible to receive, a loan
                    under the Rural Electrification Act of 1936 (7
                    U.S.C. 901 et seq.).
              (8) State.--The term ``State'' has the meaning given
            such term in section 5.51.

       Subtitle A--Establishment and Activities of Federal Agricultural
    Mortgage Corporation

               *       *       *       *       *       *       *

    SEC. 8.8. STANDARDS FOR QUALIFIED LOANS.

      (a) Standards.--
              (1) In general.--The Corporation shall establish
            underwriting, security appraisal, and repayment
            standards for qualified loans taking into account the
            nature, risk profile, and other differences between
            different categories of qualified loans.
              (2) Supervision, examination, and report of
            condition.--The standards shall be subject to the
            authorities of the Farm Credit Administration under
            section 8.11.
              (3)  [Mortgage loans] Loan quality.--In establishing
            standards for qualified loans, the Corporation shall
            confine corporate operations, so far as practicable, to
            mortgage loans that are deemed by the Board to be of
            such quality so as to meet, substantially and
            generally, the purchase standards imposed by private
            institutional [mortgage investors] investors in those
            types of loans.
      (b) Minimum Criteria.--To further the purpose of this title
    to provide a new source of long-term fixed rate financing to
    assist farmers and ranchers to purchase agricultural real
    estate, the standards established by the Board pursuant to
    subsection (a) with respect to loans secured by agricultural
    real estate shall, at a minimum--
              (1) provide that no agricultural mortgage loan with a
            loan-to-value ratio in excess of 80 percent may be
            treated as a qualified loan;
              (2) require each borrower to demonstrate sufficient
            cash-flow to adequately service the agricultural
            mortgage loan;
              (3) contain sufficient documentation standards;
              (4) contain adequate standards to protect the
            integrity of the appraisal process with respect to any
            agricultural mortgage loans;
              (5) contain adequate standards to ensure that the
            farmer or rancher is or will be actively engaged in
            agricultural production, and require the borrower to
            certify to the originator that the borrower intends to
            continue agricultural production on the farm or ranch
            involved;
              (6) minimize speculation in agricultural real estate
            for nonagricultural purposes; and
              (7) in establishing the value of agricultural real
            estate, consider the purpose for which the real estate
            is taxed.
      [(c) Loan Amount Limitation.--
              [(1) In general.--A loan secured by agricultural real
            estate may not be treated as a qualified loan if the
            principal amount of such loan exceeds $2,500,000,
            adjusted for inflation, except as provided in paragraph
            (2).
              [(2) Acreage exception.--Paragraph (1) shall not
            apply with respect to any agricultural mortgage loan
            described in such paragraph if such loan is secured by
            agricultural real estate that, in the aggregate,
            comprises not more than 1,000 acres.]
      (c) Qualified Loan Limitation for Single Borrowers.--
              (1) In general.--The Corporation shall not treat a
            loan secured by agricultural real estate as a qualified
            loan when the cumulative principal amount of all loans
            to a single borrower or related borrowers exceeds 10
            percent of the Corporation's tier 1 capital, as defined
            by the Farm Credit Administration.
              (2) Regulator determination.--The Farm Credit
            Administration may issue regulations establishing a
            single borrower concentration limit lower than the
            percentage specified in paragraph (1) if the Farm
            Credit Administration determines that such a lower
            limit is necessary for the safe and sound operation of
            the Corporation.
      (d) Nondiscrimination Requirement.--The standards established
    under subsection (a) shall not discriminate against small
    originators or small agricultural mortgage loans that are at
    least $50,000. The Board shall promote and encourage the
    inclusion of qualified loans for small farms and family farmers
    in the agricultural mortgage secondary market.

               *       *       *       *       *       *       *

                                  ----------

                        AGRICULTURAL CREDIT ACT OF 1987

               *       *       *       *       *       *       *

                       TITLE V--STATE MEDIATION PROGRAMS

                        Subtitle A--Matching Grants for
                           State Mediation Programs

               *       *       *       *       *       *       *

    SEC. 502. MATCHING GRANTS TO STATES.

      (a) Matching Grants.--Within 60 days after the Secretary
    certifies the State as a qualifying State under section 501(b),
    the Secretary shall provide financial assistance to the State,
    in accordance with subsection (b), for the operation and
    administration of the mediation program.
      (b) Amount of Grant.--
              (1) In general.--Subject to paragraph (2), the
            Secretary shall pay to a State under subsection (a) not
            more than 70 percent of the cost of the operation and
            administration of the mediation program within the
            State.
              (2) Maximum amount.--The Secretary shall not pay more
            than [$500,000] $700,000 per year to a single State
            under subsection (a).
      (c) Use of Grant.--
              (1) In general.--Each State that receives an amount
            paid under subsection (a) shall use that amount only
            for the operation and administration of the mediation
            program of the State with respect to which the amount
            was paid.
              (2) Operation and administration expenses.--For
            purposes of paragraph (1), operation and administration
            expenses for which a grant may be used include--
                      (A) salaries;
                      (B) reasonable fees and costs of mediators;
                      (C) office rent and expenses, such as
                    utilities and equipment rental;
                      (D) office supplies;
                      (E) administrative costs, such as workers'
                    compensation, liability insurance, the
                    employer's share of Social Security, and
                    necessary travel;
                      (F) education and training;
                      (G) security systems necessary to ensure the
                    confidentiality of mediation sessions and
                    records of mediation sessions;
                      (H) costs associated with publicity and
                    promotion of the mediation program;
                      (I) preparation of the parties for mediation;
                    and
                      (J) financial advisory and counseling
                    services for parties requesting mediation.
      (d) Penalty.--If the Secretary determines that a State has
    not complied with subsection (c), such State shall not be
    eligible for additional financial assistance under this
    subtitle.
      (e) Carryover of Financial Assistance.--The Secretary shall
    permit a State that receives financial assistance under
    subsection (a) for a fiscal year to carry over not more than 25
    percent of the financial assistance that is not expended by the
    end of the fiscal year, for use during the next fiscal year
    without deducting the amount from any assistance provided under
    this Act in subsequent fiscal years.

               *       *       *       *       *       *       *

    SEC. 506. AUTHORIZATION OF APPROPRIATIONS.

      There are authorized to be appropriated to carry out this
    subtitle $7,500,000 for each of the fiscal years 1988 through
    [2023] 2031.

               *       *       *       *       *       *       *

                                  ----------

                       RURAL ELECTRIFICATION ACT OF 1936

               *       *       *       *       *       *       *

                                   TITLE III

               *       *       *       *       *       *       *

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

      (a) In General.--
              (1) Guarantees.--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
            notesare used to make utility infrastructure loans, or
            refinancebonds or notes issued for those purposes, to a
            borrowerthat has at any time received, or is eligible
            to receive,a loan under this Act.
              (2) Terms.--A bond or note guaranteed under this
            section shall, by agreement between the Secretary and
            the borrower--
                      (A) be for a term of 30 years (or another
                    term of years that the Secretary determines is
                    appropriate); and
                      (B) be repaid by the borrower--
                              (i) in periodic installments of
                            principal and interest;
                              (ii) in periodic installments of
                            interest and, at the end of the term of
                            the bond or note, as applicable, by the
                            repayment of the outstanding principal;
                            or
                              (iii) through a combination of the
                            methods described in clauses (i) and
                            (ii).
      (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 eligible purposes described in
            subsection (a)(1).
              (2) 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 eligible purposes
                    described in subsection (a)(1);
                      (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)(1).
              (3) Annual amount.--The total amount of guarantees
            provided by the Secretary under this section during a
            fiscal year shall not exceed $1,000,000,000, subject to
            the availability of funds under subsection (e).
      (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.--
                      (A) In general.--The amount of the 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.
                      (B) Prohibition.--Except as otherwise
                    provided in this subsection and subsection
                    (e)(2), no other fees shall be assessed.
              (3) Payment.--
                      (A) In general.--A lender shall pay the fees
                    required under this subsection on a semiannual
                    basis.
                      (B) Structured schedule.--The Secretary
                    shall, with the consent of the lender,
                    structure the schedule for payment of the fee
                    to ensure that sufficient funds are available
                    to pay the subsidy costs for note or bond
                    guarantees as provided for in subsection
                    (e)(2).
              (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 that shall be maintained
                    as required by sections 313(b)(2) and 313B(f),
                    to remain available until expended; and
                      (B) used for the purposes described in
                    section 313(b)(2).
      (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 required to be maintained by
            sections 313(b)(2) and 313B(f).
      (f) Termination.--The authority provided under this section
    shall terminate on September 30, [2023] 2031.

    SEC. 313B. RURAL DEVELOPMENT LOANS AND GRANTS.

      (a) In General.--The Secretary shall provide grants or zero
    interest loans to borrowers under this Act for the purpose of
    promoting rural economic development and job creation projects,
    including funding for project feasibility studies, start-up
    costs, incubator projects, and other reasonable expenses for
    the purpose of fostering rural development.
      [(b) Repayments.--In the case of zero interest loans, the
    Secretary shall establish such reasonable repayment terms as
    will encourage borrower participation.]
      (b) Repayments.--
              (1) In general.--In the case of zero interest loans,
            the Secretary shall establish such reasonable repayment
            terms as will encourage borrower participation.
              (2) Letters of credit.--The Secretary shall not
            require a letter of credit or other similar guarantee
            from a recipient of a zero-interest loan under this
            section if the borrower assigns the Secretary a
            security interest in any collateral provided to secure
            a loan made with funds loaned under this section, or
            makes other similar arrangements to the satisfaction of
            the Secretary.
      (c) Proceeds.--All proceeds from the repayment of such loans
    made under this section shall be returned to the subaccount
    that the Secretary shall maintain in accordance with sections
    313(b)(2) and 313B(f).
      (d) Number of Grants.--Loans and grants required under this
    section shall be made to the full extent of the amounts made
    available under subsection (e).
      (e) Funding.--
              (1) Discretionary funding.--In addition to other
            funds that are available to carry out this section,
            there is authorized to be appropriated not more than
            $10,000,000 for each of fiscal years [2019 through
            2023] 2027 through 2031 to carry out this section, to
            remain available until expended.
              (2) Mandatory funding.--Of the funds of the Commodity
            Credit Corporation, the Secretary shall credit to the
            subaccount to use for the cost of grants and loans
            under this section $5,000,000 for each of fiscal years
            2022 through 2024, to remain available until expended.
              (3) Other funds.--In addition to the funds described
            in paragraphs (1) and (2), the Secretary shall use,
            without fiscal year limitation, to provide grants and
            loans under this section--
                      (A) the interest differential sums credited
                    to the subaccount described in subsection (c);
                    and
                      (B) subject to section 313A(e)(2), the fees
                    described in subsection (c)(4) of such section.
      (f) Maintenance of Account.--The Secretary shall maintain the
    subaccount described in section 313(b)(2), as in effect in
    fiscal year 2017, for purposes of carrying out this section.

    SEC. 315. EXPANSION OF 911 ACCESS.

      (a) In General.--Subject to subsection (c) and such terms and
    conditions as the Secretary may prescribe, the Secretary may
    make loans under this title to entities eligible to borrow from
    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 in rural areas--
              (1) 911 access;
              (2) integrated interoperable emergency
            communications, including multiuse networks that
            provide critical transportation-related information
            services in addition to emergency communications
            services;
              (3) homeland security communications;
              (4) transportation safety communications; or
              (5) location technologies used outside an urbanized
            area.
      (b) Loan Security.--Government-imposed fees related to
    emergency communications (including State or local 911 fees)
    may be considered to be security for a loan under this section.
      (c) Emergency Communications Equipment Providers.--The
    Secretary may make a loan under this section to an emergency
    communication equipment provider to expand or improve 911
    access or other communications or technologies described in
    subsection (a) if the local government that has jurisdiction
    over the project is not allowed to acquire the debt resulting
    from the loan.
      (d) Authorization of Appropriations.--The Secretary shall use
    to make loans under this section any funds otherwise made
    available for telephone loans for each of fiscal years [2008
    through 2023] 2027 through 2031.

               *       *       *       *       *       *       *

                        TITLE VI--RURAL BROADBAND ACCESS

    SEC. 601. [ACCESS TO BROADBAND TELECOMMUNICATIONS SERVICES IN RURAL
                        AREAS]  RECONNECT RURAL BROADBAND PROGRAM.

      (a) Purpose.--[The purpose of this section is to provide
    grants, provide loans, and provide loan guarantees to provide
    funds for] The Secretary shall establish a program, which shall
    be known as the ``ReConnect Rural Broadband Program'', to
    provide grants, loans, and loan guarantees to finance the costs
    of the construction, improvement, and acquisition of facilities
    and equipment for broadband service in rural areas.
      (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) Incumbent service provider.--The term ``incumbent
            service provider'', with respect to an application
            submitted under this section, means an entity that, as
            of the date of submission of the application, is
            providing broadband service to not less than 5 percent
            of the households in the service territory proposed in
            the application.
              (3) Rural area.--
                      (A) In general.--The term ``rural area''
                    means any area other than--
                              (i) an area described in clause (i)
                            or (ii) of section 343(a)(13)(A) of the
                            Consolidated Farm and Rural Development
                            Act (7 U.S.C. 1991(a)(13)(A)); and
                              (ii) in the case of a grant or direct
                            loan, a city, town, or incorporated
                            area that has a population of greater
                            than 20,000 inhabitants.
                      (B) Urban area growth.--The Secretary may, by
                    regulation only, consider an area described in
                    section 343(a)(13)(F)(i)(I) of that Act to not
                    be a rural area for purposes of this section.
                      (C) Exclusion of certain populations.--Such
                    term does not include any population described
                    in subparagraph (H) or (I) of section
                    343(a)(13) of the Consolidated Farm and Rural
                    Development Act (7 U.S.C. 1991(a)(13)).
      (c) Grants, Loans, and Loan Guarantees.--
              [(1) In general.--The Secretary shall make grants,
            shall make loans, and shall 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 rural areas.]
              (1) In general.--The Secretary shall make grants,
            loans, and loan guarantees to eligible entities
            described in subsection (d) for the purpose of
            financing the construction, improvement, or acquisition
            of facilities and equipment necessary for delivering
            broadband service in rural areas.
              (2) Priority.--
                      [(A) In general.--In making grants, making
                    loans, and guaranteeing loans under paragraph
                    (1), the Secretary shall--
                              [(i) give the highest priority to
                            applications for projects to provide
                            broadband service to unserved rural
                            communities that do not have any
                            residential broadband service of at
                            least--
                                      [(I) a 10-Mbps downstream
                                    transmission capacity; and
                                      [(II) a 1-Mbps upstream
                                    transmission capacity;
                              [(ii) give priority to applications
                            for projects to provide the maximum
                            level of broadband service to the
                            greatest proportion of rural households
                            in the proposed service area identified
                            in the application;
                              [(iii) provide equal consideration to
                            all eligible entities, including those
                            that have not previously received
                            grants, loans, or loan guarantees under
                            paragraph (1); and
                              [(iv) with respect to 2 or more
                            applications that are given the same
                            priority under clause (i), give
                            priority to an application that
                            requests less grant funding than loan
                            funding.
                      [(B) Other.--After giving priority to the
                    applications described in clauses (i) and (ii)
                    of subparagraph (A), the Secretary shall then
                    give priority to applications--
                              [(i) for projects to provide
                            broadband service to rural
                            communities--
                                      [(I) with a population of
                                    less than 10,000 permanent
                                    residents;
                                      [(II) that are experiencing
                                    outmigration and have adopted a
                                    strategic community investment
                                    plan under section 379H(d) that
                                    includes considerations for
                                    improving and expanding
                                    broadband service;
                                      [(III) with a high percentage
                                    of low income families or
                                    persons (as defined in section
                                    501(b) of the Housing Act of
                                    1949 (42 U.S.C. 1471(b));
                                      [(IV) that are isolated from
                                    other significant population
                                    centers; or
                                      [(V) that provide rapid and
                                    expanded deployment of fixed
                                    and mobile broadband on
                                    cropland and ranchland within a
                                    service territory for use in
                                    various applications of
                                    precision agriculture; and
                              [(ii) that were developed with the
                            participation of, and will receive a
                            substantial portion of the funding for
                            the project from, 2 or more
                            stakeholders, including--
                                      [(I) State, local, and tribal
                                    governments;
                                      [(II) nonprofit institutions;
                                      [(III) community anchor
                                    institutions, such as--
                                              [(aa) public
                                            libraries;
                                              [(bb) elementary
                                            schools and secondary
                                            schools (as defined in
                                            section 8101 of the
                                            Elementary and
                                            Secondary Education Act
                                            of 1965 (20 U.S.C.
                                            7801));
                                              [(cc) institutions of
                                            higher education; and
                                              [(dd) health care
                                            facilities;
                                      [(IV) private entities;
                                      [(V) philanthropic
                                    organizations; and
                                      [(VI) cooperatives.]
                      (A) In general.--In making grants, making
                    loans, and guaranteeing loans under paragraph
                    (1), the Secretary shall give the highest
                    priority to applications for projects to
                    provide broadband service to unserved rural
                    communities that do not have any residential
                    broadband service of at least--
                              (i) a 25-Mbps downstream transmission
                            capacity; and
                              (ii) a 3-Mbps upstream transmission
                            capacity.
                      (B) Other.--After giving priority to the
                    applications described in subparagraph (A), the
                    Secretary shall then give priority to
                    applications--
                              (i) for projects to provide broadband
                            service to rural communities--
                                      (I) with a population of less
                                    than 10,000 inhabitants; or
                                      (II) in geographically
                                    underserved and distressed
                                    areas, including--
                                              (aa) a socially
                                            vulnerable community
                                            (as determined by the
                                            Secretary);
                                              (bb) a persistent
                                            poverty county (as
                                            determined by the
                                            Secretary); or
                                              (cc) in an
                                            economically distressed
                                            area (as determined by
                                            the Secretary);
                              (ii) that were developed with the
                            participation of, and will receive a
                            substantial portion of the funding or
                            in-kind assistance for the project
                            from, 2 or more stakeholders,
                            including--
                                      (I) State, local, and Tribal
                                    governments;
                                      (II) nonprofit institutions;
                                      (III) community anchor
                                    institutions, such as--
                                              (aa) public
                                            libraries;
                                              (bb) elementary
                                            schools and secondary
                                            schools (as defined in
                                            section 8101 of the
                                            Elementary and
                                            Secondary Education Act
                                            of 1965 (20 U.S.C.
                                            7801));
                                              (cc) institutions of
                                            higher education
                                            (including 1862 Land-
                                            Grant Institutions,
                                            1890 Land-Grant
                                            Institutions, 1994
                                            Land-Grant
                                            Institutions, Hispanic-
                                            Serving Institutions,
                                            and Historically Black
                                            Colleges and
                                            Universities);
                                              (dd) health care
                                            facilities; and
                                              (ee) facilities
                                            essential for local or
                                            regional commerce or
                                            for the movement of
                                            goods;
                                      (IV) private entities;
                                      (V) philanthropic
                                    organizations; and
                                      (VI) cooperatives; or
                              (iii) that are submitted by an
                            eligible entity or is owned by an
                            entity that has provided broadband
                            service or other utility service for at
                            least 5 years in rural areas in the
                            State in which the project would be
                            carried out.
                      (C) Affordability.--In determining whether a
                    household is unserved for purposes of this
                    section, the Secretary shall consider the
                    affordability of broadband service.
              (3) Grant amounts.--
                      (A) Definition of development costs.--In this
                    paragraph, the term ``development costs'' means
                    costs of--
                              (i) construction, including labor and
                            materials;
                              (ii) project applications; and
                              (iii) other development activities,
                            as determined by the Secretary.
                      (B) Eligibility.--To be eligible for a grant
                    under this section, in addition to the
                    requirements of subsection (d), the project
                    that is the subject of the grant shall--
                              (i) be carried out in a proposed
                            service territory in which not less
                            than 90 percent of the households are
                            unserved; [and]
                              (ii) not concurrently receive any
                            other broadband grant administered by
                            the Rural Utilities Service[.]; and
                              (iii) shall be subject to a grant
                            agreement of not less than 10 years.
                      [(C) Maximum.--Except as provided in
                    subparagraph (D), the amount of any grant made
                    under this section shall not exceed--
                              [(i) 75 percent of the total project
                            cost with respect to an area with a
                            density of fewer than 7 people per
                            square mile;
                              [(ii) 50 percent of the total project
                            cost with respect to an area with a
                            density of 7 or more and fewer than 12
                            people per square mile; and
                              [(iii) 25 percent of the total
                            project cost with respect to an area
                            with a density of 12 or more and 20 or
                            fewer people per square mile.
                      [(D) Secretarial authority to adjust.--The
                    Secretary may--
                              [(i) make grants of up to 75 percent
                            of the development costs of the project
                            for which the grant is provided to an
                            eligible entity if the Secretary
                            determines that the project serves--
                                      [(I) an area of rural
                                    households described in
                                    paragraph (2)(A)(i); or
                                      [(II) a rural community
                                    described in any of subclauses
                                    (I) through (IV) of paragraph
                                    (2)(B)(i); and
                              [(ii) make modifications of the
                            density thresholds described in
                            subparagraph (C), in order to ensure
                            that funds provided under this section
                            are best utilized to provide broadband
                            service in communities that are the
                            most rural in character.]
                      (C) Applications.--
                              (i) Grant-only applications.--The
                            Secretary shall establish an
                            application process that permits an
                            application for a grant-only award.
                              (ii) Combined applications.--The
                            Secretary shall establish an
                            application process that--
                                      (I) permits a single
                                    application for a grant and a
                                    loan under title I or II, or
                                    this title, that is associated
                                    with the grant; and
                                      (II) provides a single
                                    decision to award the grant and
                                    the loan.
                      [(E)] (D) Applications.--The Secretary shall
                    establish an application process for grants
                    under this section that--
                              (i) permits a single application for
                            a grant and a loan under title I, II,
                            or this title that is associated with
                            such grant; and
                              (ii) provides a single decision to
                            award such grant and such loan.
                      [(F) Density determinations.--When
                    determining population density under this
                    section, the Secretary shall prescribe a
                    calculation method which--
                              [(i) utilizes publicly available
                            data; and
                              [(ii) includes only those areas in
                            which the applicant is able to meet the
                            service requirements under this
                            section, as determined by the
                            Secretary.]
              [(4) Fees.--In the case of loan guarantees issued or
            modified under this section, the Secretary shall charge
            and collect from the lender fees in such amounts as to
            bring down the costs of subsidies for guaranteed loans,
            except that such fees shall not act as a bar to
            participation in the programs nor be inconsistent with
            current practices in the marketplace.]
              (4) Fees.--
                      (A) Initial guarantee fee.--The Secretary may
                    assess an initial guarantee fee for any insured
                    or guaranteed loan issued or modified under
                    this section in an amount that does not exceed
                    3 percent of the guaranteed principal portion
                    of the loan.
                      (B) Periodic retention fee.--The Secretary
                    may assess a periodic retention fee for any
                    insured or guaranteed loan issued or modified
                    under this section in an amount that does not
                    exceed 0.75 percent of the outstanding
                    principal of the guarantee loan.
                      (C) Disclosure.--In altering any fee charged
                    for any insured or guaranteed loan issued or
                    modified under this section, the Secretary, not
                    less than 30 days in advance of any fee change,
                    shall provide a public disclosure, of the
                    financial data, economic and behavioral
                    assumptions, calculations, and other factors
                    used to determine the new fee rates.
      (d) Eligibility.--
              (1) Eligible entities.--
                      (A) In general.--To be eligible to obtain a
                    grant, loan, or loan guarantee under this
                    section, an entity shall--
                              (i) demonstrate the ability to
                            furnish or improve service in order to
                            meet the broadband buildout
                            requirements established under
                            subsection (e)(4) in all or part of an
                            unserved or underserved rural area; and
                              (ii) submit to the Secretary an
                            application at such time, in such
                            manner, and containing such information
                            as the Secretary may [require; and]
                              [(iii) agree] require, and agree to
                            complete buildout of the broadband
                            infrastructure described in the
                            application by not later than 5 years
                            after the initial date on which
                            assistance under this section is made
                            available.
                      (B) Inclusions.--An entity eligible to obtain
                    assistance under subsection (c) may include--
                              (i) a State or local government,
                            including any agency, subdivision,
                            instrumentality, or political
                            subdivision of a State or local
                            government;
                              (ii) a territory or possession of the
                            United States;
                              (iii) an Indian Tribe (as defined in
                            section 4 of the Indian Self-
                            Determination and Education Assistance
                            Act (25 U.S.C. 5304));
                              (iv) a cooperative or mutual
                            organization;
                              (v) an organization of 2 or more
                            incorporated areas that have
                            established an intermunicipal legal
                            agreement for the purposes of
                            delivering communication services to
                            residents;
                              (vi) a corporation; or
                              (vii) a limited liability company or
                            limited liability partnership.
                      (C) Ineligible entities.--An individual or
                    legal general partnership that is formed with
                    individuals shall not be eligible to obtain a
                    grant, loan, or grant and loan combination
                    under subsection (c).
                      (D) Affiliated owned and operated networks.--
                    Under this subsection, the Secretary may fund
                    the construction of networks owned and operated
                    by an affiliate of an eligible entity receiving
                    the grant, loan, or loan guarantee, if the
                    eligible entity, the affiliate, or both, as
                    determined necessary by the Secretary,
                    furnishes adequate security for the grant,
                    loan, or loan guarantee.
                      [(B)] (E) Limitation.--An eligible entity
                    that provides telecommunications or broadband
                    service to at least 20 percent of the
                    households in the United States , directly or
                    in conjunction with any combination of
                    affiliates, may not receive an amount of funds
                    under this section for a fiscal year in excess
                    of 15 percent of the funds authorized and
                    appropriated under subsection (j) for the
                    fiscal year.
              (2) Eligible projects.--
                      (A) In general.--Except as provided in
                    [subparagraphs (B) and (C)] subparagraph (B),
                    assistance under this section may be used to
                    carry out a project in a proposed service
                    territory only if, as of the date on which the
                    application of the eligible entity [is
                    submitted--
                              [(i) not less than 50] is submitted
                            not less than 75 percent (in the case
                            of loans or loan guarantees provided in
                            accordance with subsection (g)(1)(A))
                            of the households in the proposed
                            service territory are unserved or have
                            service levels below the minimum
                            acceptable level of fixed broadband
                            service, whether terrestrial or
                            wireless, established under subsection
                            [(e); and]
                              [(ii) broadband service is not
                            provided in any part of the proposed
                            service territory by 3 or more
                            incumbent service providers.] (e).
                      (B) Exception to percent requirement.--
                    Subparagraph [(A)(i)] (A)  shall not apply to
                    the proposed service territory of a project if
                    a loan or loan guarantee has been made under
                    this section to the applicant to provide
                    broadband service in the proposed service
                    territory.
                      [(C) Exception to incumbent service provider
                    requirement.--
                              [(i) In general.--Except as provided
                            in clause (ii), subparagraph (A)(ii)
                            shall not apply to an incumbent service
                            provider in the portion of a proposed
                            service territory in which the provider
                            is upgrading broadband service to meet
                            the minimum acceptable level of
                            broadband service established under
                            subsection (e) for the existing
                            territory of the incumbent service
                            provider.
                              [(ii) Exception.--Clause (i) shall
                            not apply if the applicant is eligible
                            for funding under another title of this
                            Act.]
                      (C) Affordability.--In deciding whether a
                    proposed service territory is unserved for
                    purposes of subparagraph (A), the Secretary
                    shall consider the affordability of broadband
                    service in the service territory.
              (3) Equity and market survey requirements.--
                      (A) In general.--The Secretary may require an
                    entity to provide a cost share in an amount not
                    to exceed 10 percent of the amount of the
                    grant, loan, or loan guarantee requested in the
                    application of the entity, unless the Secretary
                    determines that a higher percentage is required
                    for financial feasibility.
                      (B) Market survey.--
                              (i) In general.--The Secretary may
                            require an entity that proposes to have
                            a subscriber projection of more than 20
                            percent of the broadband service market
                            in a rural area to submit to the
                            Secretary a market survey.
                              (ii) Less than 20 percent.--The
                            Secretary may not require an entity
                            that proposes to have a subscriber
                            projection of less than 20 percent of
                            the broadband service market in a rural
                            area to submit to the Secretary a
                            market survey.
                              (iii) Information.--Information
                            submitted under this subparagraph shall
                            be--
                                      (I) certified by the affected
                                    community, city, county, or
                                    designee; or
                                      (II) demonstrated on--
                                              (aa) the broadband
                                            map of the affected
                                            State if the map
                                            contains address-level
                                            data; or
                                              (bb) the National
                                            Broadband Map if
                                            address-level data is
                                            unavailable.
              [(4) State and local governments and indian tribes.--
            Subject to paragraph (1), a State or local government
            (including any agency, subdivision, or instrumentality
            thereof (including consortia thereof)) and an Indian
            tribe shall be eligible for assistance under this
            section to provide broadband services to a rural area.
              [(5) Technical assistance and training.--
                      [(A) In general.--The Secretary may provide
                    to eligible entities described in paragraph (1)
                    that are applying for assistance under this
                    section for a project described in subsection
                    (c)(2)(A)(i) technical assistance and
                    training--
                              [(i) to prepare reports and surveys
                            necessary to request grants, loans, and
                            loan guarantees under this section for
                            broadband deployment;
                              [(ii) to improve management,
                            including financial management,
                            relating to the proposed broadband
                            deployment;
                              [(iii) to prepare applications for
                            grants, loans, and loan guarantees
                            under this section; or
                              [(iv) to assist with other areas of
                            need identified by the Secretary.
                      [(B) Funding.--Not less than 3 percent and
                    not more than 5 percent of amounts appropriated
                    to carry out this section for a fiscal year
                    shall be used for technical assistance and
                    training under this paragraph.]
      (e) Broadband Service.--
              (1) In general.--[Subject to paragraph (2), for] For
            purposes of this section, the minimum acceptable level
            of broadband service for a rural area shall be at
            least--
                      (A) a [25] 50-Mbps downstream transmission
                    capacity; and
                      (B) a [3] 25-Mbps upstream transmission
                    capacity.
              [(2) Adjustments.--At least once every 2 years, the
            Secretary shall review, and may adjust through notice
            published in the Federal Register, the minimum
            acceptable level of broadband service established under
            paragraph (1) and broadband buildout requirements under
            paragraph (4)to ensure that high quality, cost-
            effective broadband service is provided to rural areas
            over time.]
              (2) Adjustments.--The Secretary may adjust, through a
            30-day public notice and comment period published in
            the Federal Register, an increase in the minimum level
            of broadband service under paragraph (1) of no more
            than 50 percent from the preceding year, if less than
            95 percent of the funds of the program are obligated in
            the preceding 2 funding rounds.
              (3) Prohibition.--The Secretary shall not establish
            requirements for bandwidth or speed that have the
            effect of precluding the use of evolving technologies
            appropriate for rural areas.
              (4) Broadband [buildout] project agreement
            requirements.--
                      (A) In general.--The term ``broadband
                    buildout requirement'' means the level of
                    internet service an applicant receiving
                    assistance under this section must agree, at
                    the time the application is finalized, to
                    provide for the duration of any project-related
                    agreement between the applicant and the
                    Department.
                      [(B) Broadband buildout requirements further
                    defined.--Subject to subparagraph (C), the
                    Secretary shall establish broadband buildout
                    requirements for projects with agreement
                    lengths of--
                              [(i) 5 to 10 years;
                              [(ii) 11 to 15 years;
                              [(iii) 16 to 20 years; and
                              [(iv) more than 20 years.
                      [(C) Requirements.--In establishing the
                    broadband buildout requirements under
                    subparagraph (B), the Secretary shall--
                              [(i) utilize the same metrics used to
                            define the minimum acceptable level of
                            broadband service under paragraph (1);
                              [(ii) establish such requirements to
                            reasonably ensure--
                                      [(I) the repayment of all
                                    loans and loan guarantees; and
                                      [(II) the financed network is
                                    technically capable of
                                    providing broadband service for
                                    the lifetime of any project-
                                    related agreement.
                      [(D) Substitute service standards for unique
                    service territories.--If an applicant shows
                    that it would be cost prohibitive to meet the
                    broadband buildout requirements established
                    under this paragraph for the entirety of a
                    proposed service territory due to the unique
                    characteristics of the proposed service
                    territory, the Secretary and the applicant may
                    agree to utilize substitute standards for any
                    unserved portion of the project. Any substitute
                    service standards should continue to consider
                    the best technology available to meet the needs
                    of the residents in the unserved area.]
                      (B) Broadband buildout standards defined.--A
                    project must meet the following applicable
                    broadband standard in order to be considered
                    for assistance;
                              (i) A project with an award term of
                            less than 8 years must provide service
                            at 2 times the minimum broadband speed
                            established in subsection (e)(1).
                              (ii) A project with an award term of
                            at least 8 years and less than 14 years
                            must provide service at 5 times the
                            minimum broadband speed established in
                            subsection (e)(1).
                              (iii) A project with an award term of
                            14 or more years must provide service
                            at 10 times the minimum broadband speed
                            established in subsection (e)(1).
                      (C) Network upgrade planning.--The Secretary
                    may prioritize an applicant seeking to meet the
                    broadband buildout standards under clause (i)
                    or (ii) of subparagraph (B) if the applicant
                    submits information regarding the potential for
                    the physical infrastructure of the network to
                    be upgraded to meet the broadband buildout
                    standards under subparagraph (B)(iii) at the
                    time of the application, assuming reasonable
                    progress in relevant networking technologies.
      (f) Technological Neutrality.--For purposes of determining
    whether to provide assistance for a project under this section,
    the Secretary shall use criteria that are technologically
    neutral.
      (g) Terms and Conditions for Loans and Loan Guarantees.--
              (1) In general.--Notwithstanding any other provision
            of law, a loan or loan guarantee under this section
            shall--
                      (A) bear interest at an annual rate of, as
                    determined by the Secretary--
                              (i) in the case of a direct loan, a
                            rate equivalent to--
                                      (I) the cost of borrowing to
                                    the Department of the Treasury
                                    for obligations of comparable
                                    maturity; or
                                      (II) 4 percent; and
                              (ii) in the case of a guaranteed
                            loan, the current applicable market
                            rate for a loan of comparable maturity;
                            and
                      (B) have a term of such length, not exceeding
                    35 years, as the borrower may request, if the
                    Secretary determines that the loan is
                    adequately secured.
              (2) Recurring revenue.--The Secretary shall consider
            the existing recurring revenues of the entity at the
            time of application in determining an adequate level of
            credit support.
      (h) Adequacy of Security.--
              (1) In general.--The Secretary shall ensure that the
            type and amount of, and method of security used to
            secure, any loan or loan guarantee under this section
            is commensurate to the risk involved with the loan or
            loan guarantee, particularly in any case in which the
            loan or loan guarantee is issued to a financially
            strong and stable entity, as determined by the
            Secretary.
              (2) Determination of amount and method of security.--
            In determining the amount of, and method of security
            used to secure, a loan or loan guarantee under this
            section, the Secretary shall consider reducing the
            security in a rural area that does not have broadband
            service.
      (i) Payment Assistance for Certain Loan and Grant
    Recipients.--
              (1) Use of grant funds.--The Secretary may use the
            funds appropriated for a grant under this title for the
            cost (as defined by section 502 of the Congressional
            Budget Act of 1974) of providing assistance under
            paragraph (2).
              (2) Payment assistance.--When providing a grant under
            this title, the Secretary, at the sole discretion of
            the Secretary, may make--
                      (A) a subsidized loan, which shall bear a
                    reduced interest rate at such a rate as the
                    Secretary determines appropriate to meet the
                    objectives of the program; or
                      (B) a payment assistance loan, which shall--
                              (i) require no interest and principal
                            payments while the borrower is--
                                      (I) in material compliance
                                    with the loan agreement; and
                                      (II) meeting the milestones
                                    and objectives of the project
                                    agreed to under paragraph (3);
                                    and
                              (ii) require such nominal periodic
                            payments as the Secretary determines to
                            be appropriate.
              (3) Agreement on milestones and objectives.--With
            respect to payment assistance provided under paragraph
            (2), before entering into the agreement under which the
            payment assistance will be provided, the applicant and
            the Secretary shall agree to milestones and objectives
            of the project.
              (4) Amendment of milestones and objectives.--The
            Secretary and the applicant may jointly agree to amend
            the milestones and objectives agreed to under paragraph
            (3).
              (5) Considerations.--When deciding to utilize the
            payment assistance authority under paragraph (2) the
            Secretary shall consider whether or not the payment
            assistance will--
                      (A) improve the compliance of the grantee
                    with any commitments made through the grant
                    agreement;
                      (B) promote the completion of the broadband
                    project;
                      (C) protect taxpayer resources; and
                      (D) support the integrity of the broadband
                    programs administered by the Secretary.
              (6) Limitations on payment assistance.--The Secretary
            may not make a payment assistance loan under paragraph
            (2)(B) to an entity receiving a grant under this
            section that is also the recipient of a loan under
            title I or II that is associated with such grant.
      [ (j) Funding.--
              [(1) Authorization of appropriations.--There is
            authorized to be appropriated to the Secretary to carry
            out this section$350,000,000 for each of fiscal years
            2019 through 2023, to remain available until expended.
              [(2) 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--
                              [(i) the number of communities with a
                            population of 2,500 inhabitants or less
                            in the State; bears to
                              [(ii) the number of communities with
                            a population of 2,500 inhabitants or
                            less in all States.
                      [(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.]
      (j) Authorization of Appropriations.--There is authorized to
    be appropriated to the Secretary to carry out this section
    $350,000,000 for each of fiscal years 2027 through 2031, to
    remain available until expended.
      (k) Termination of Authority.--No grant, or loan, or loan
    guarantee may be made under this section after September 30,
    [2023] 2031.

    SEC. 602. EXPANSION OF MIDDLE MILE INFRASTRUCTURE INTO RURAL AREAS.

      (a) Purpose.--The purpose of this section is to encourage the
    expansion and extension of middle mile broadband infrastructure
    to connect underserved rural areas to the backbone of the
    Internet.
      (b) Middle Mile Infrastructure.--For the purposes of this
    section, the term ``middle mile infrastructure'' means any
    broadband infrastructure that does not connect directly to end-
    user locations (including anchor institutions) and may include
    interoffice transport, backhaul, Internet connectivity, data
    centers, or special access transport to rural areas.
      (c) Grants, Loans, and Loan Guarantees.--The Secretary shall
    make grants, loans, and loan guarantees to eligible applicants
    described in subsection (d) to provide funds for the
    construction, improvement, or acquisition of middle mile
    infrastructure to serve rural areas.
      (d) Eligibility.--
              (1) Eligible applicants.--
                      (A) In general.--To be eligible to obtain
                    assistance under this section, an eligible
                    entity shall--
                              (i) submit to the Secretary an
                            application at such time, in such
                            manner, and containing such information
                            as the Secretary may require;
                              (ii) agree to complete build-out of
                            the middle mile infrastructure
                            described in the application by not
                            later than 5 years after the initial
                            date on which proceeds from the
                            assistance provided under this section
                            are made available; and
                              (iii) submit to the Secretary a plan
                            to ensure the viability of the project
                            by--
                                      (I) connecting, assisting
                                    with connecting, or enabling
                                    the connection of retail
                                    broadband systems that serve
                                    rural areas within the proposed
                                    service territory to the middle
                                    mile infrastructure project in
                                    an affordable and economically
                                    competitive manner;
                                      (II) leasing or selling
                                    sufficient capacity prior to
                                    project approval; and
                                      (III) complying with any
                                    other requirements imposed by
                                    the Secretary.
                      (B) Additional end user broadband programs.--
                    Entities that receive assistance to construct,
                    improve, or acquire middle mile infrastructure
                    under this section shall be eligible to apply
                    for additional funds under this title to
                    provide for retail broadband service to end
                    users.
              (2) Eligible service territories.--The proceeds of
            assistance provided under this section may be used to
            carry out a project in a proposed service territory
            only if, as of the date the application for assistance
            under this section is submitted, there is not adequate
            middle mile infrastructure available to support
            broadband service for eligible rural communities that
            would be provided access to the middle mile
            infrastructure.
              (3) Eligible projects.--A project shall be eligible
            for assistance under this section if at the time of the
            application--
                      (A) at least 75 percent of the
                    interconnection points serve such eligible
                    rural areas; and
                      (B) the Secretary determines that the
                    proposed middle mile network will be capable of
                    supporting retail broadband service meeting the
                    maximum broadband buildout requirement
                    established under section 601(e)(4) for the
                    residents within the proposed service
                    territory.
      (e) Limitation on Grants.--In making grants under this
    section, the Secretary shall--
              (1) not provide any grant in excess of 20 percent of
            the total project cost; and
              (2) provide grants only to those projects which serve
            rural areas where population density or geographic
            characteristics make it infeasible to construct middle
            mile broadband systems without grant assistance.
      (f) Terms, Conditions, and Adequacy of Security.--All loans
    and loan guarantees provided under this section shall be made
    subject to such terms, conditions, and adequacy of security
    requirements as may be imposed by the Secretary. If the middle
    mile infrastructure would not provide adequate security due to
    long-term leasing arrangements, the Secretary shall require
    substitute security in such form and substance as are
    acceptable to the Secretary.
      (g) Authorization of Appropriations.--There is authorized to
    be appropriated to carry out this section $10,000,000 for each
    of fiscal years [2018 through 2023] 2027 through 2031.

    [SEC. 603. INNOVATIVE BROADBAND ADVANCEMENT PROGRAM.

      [(a) In General.--The Secretary shall establish a program to
    be known as the ``Innovative Broadband Advancement Program'',
    under which the Secretary may provide a grant, a loan, or both
    to an eligible entity for the purpose of demonstrating
    innovative broadband technologies or methods of broadband
    deployment that significantly decrease the cost of broadband
    deployment, and provide substantially faster broadband speeds
    than are available, in a rural area.
      [(b) Rural Area.--In this section, the term ``rural area''
    has the meaning provided in section 601(b)(3).
      [(c) Eligibility.--To be eligible to obtain assistance under
    this section for a project, an entity shall--
              [(1) submit to the Secretary an application--
                      [(A) that describes a project designed to
                    decrease the cost of broadband deployment, and
                    substantially increase broadband speed to not
                    less than the maximum broadband buildout
                    requirements established under section
                    601(e)(4), in a rural area to be served by the
                    project; and
                      [(B) at such time, in such manner, and
                    containing such other information as the
                    Secretary may require;
              [(2) demonstrate that the entity is able to carry out
            the project; and
              [(3) agree to complete the project build-out within 5
            years after the date the assistance is first provided
            for the project.
      [(d) Prioritization.--In awarding assistance under this
    section, the Secretary shall give priority to proposals for
    projects that--
              [(1) involve partnerships between or among multiple
            entities;
              [(2) would provide broadband service to the greatest
            number of rural entities at or above the broadband
            requirements referred to in subsection (c)(1)(A); and
              [(3) the Secretary determines could be replicated in
            rural areas described in paragraph (2).
      [(e) Authorization of Appropriations.--There is authorized to
    be appropriated to carry out this section $10,000,000 for each
    of fiscal years 2019 through 2023.]

    SEC. 603. INNOVATIVE BROADBAND ADVANCEMENT PROGRAM.

      (a) In General.--The Secretary shall establish a program to
    be known as the ``Innovative Broadband Advancement Program'',
    under which the Secretary may provide a grant, a loan, or both
    to an eligible entity for the purpose of demonstrating
    innovative broadband technologies or methods of broadband
    deployment that significantly decrease the cost of broadband
    deployment, and provide substantially faster broadband speeds
    than are available, in a rural area.
      (b) Terrestrial Broadband Demonstration Projects.--
              (1) In general.--The Secretary shall provide grants
            or loans to eligible entities for the purpose of
            deploying innovative broadband technologies to
            qualified consumers who subscribe to terrestrial
            broadband service in rural areas.
              (2) Eligibility.--To be eligible to obtain assistance
            under this subsection for a project, an entity shall--
                      (A) submit to the Secretary an application--
                              (i) that describes a terrestrial
                            broadband demonstration project
                            designed to decrease the cost of
                            broadband deployment, and substantially
                            increase broadband speed to not less
                            than the maximum broadband project
                            agreement requirements established
                            under section 601(e)(4), to qualified
                            consumers in a rural area to be served
                            by the project; and
                              (ii) at such time, in such manner,
                            and containing such other information
                            as the Secretary may require;
                      (B) demonstrate that the entity is able to
                    carry out the project; and
                      (C) agree to complete the project build-out
                    within 5 years after the date the assistance is
                    first provided for the project.
              (3) Prioritization.--In awarding assistance under
            this subsection, the Secretary shall give priority to
            proposals for projects that--
                      (A) involve partnerships between or among
                    multiple entities;
                      (B) would provide broadband service to the
                    greatest number of rural entities at or above
                    the broadband requirements referred to in
                    paragraph (2)(A)(i);
                      (C) the Secretary determines could be
                    replicated in rural areas described in
                    paragraph (2); and
                      (D) are located in States and territories
                    selected by the Secretary to be diverse on the
                    basis of geography, topography, and
                    demographics.
              (4) Qualified consumer.--In this subsection, the term
            ``qualified consumer'' means--
                      (A) an individual or member of a household
                    who lives in a rural area;
                      (B) a rural small business; or
                      (C) an essential community facility, as
                    defined pursuant to section 306(a) of the
                    Consolidated Farm and Rural Development Act (7
                    U.S.C. 1926(a)).
              (5) Rural area.--In this subsection, the term ``rural
            area'' has the meaning provided in section 601(b)(3).
      (c) Satellite Broadband Demonstration Projects.--
              (1) Purpose.--The purpose of this subsection is to
            reduce or eliminate the costs to access satellite
            broadband service for remote subscribers.
              (2) Definitions.--In this subsection:
                      (A) Eligible entity.--The term ``eligible
                    entity'' means a broadband service provider
                    that provides Internet access directly to
                    qualified consumers in remote areas via
                    satellite technology.
                      (B) Qualified consumer.--The term ``qualified
                    consumer'' means a consumer served by an
                    eligible entity that receives a grant under
                    paragraph (3), who is--
                              (i) an individual or a member of a
                            household at or below the poverty line
                            (as defined in section 673(2) of the
                            Omnibus Budget Reconciliation Act of
                            1981, including any revision required
                            by such section, applicable to a family
                            of the size involved); or
                              (ii) an essential community facility,
                            as defined pursuant to section 306(a)
                            of the Consolidated Farm and Rural
                            Development Act (7 U.S.C. 1926(a)).
                      (C) Satellite broadband equipment.--The term
                    ``satellite broadband equipment'' means user
                    terminals, Wi-Fi routers, power supplies,
                    mounts, and any other equipment necessary to
                    connect a qualified consumer to satellite
                    broadband service.
                      (D) Secretary.--The term ``Secretary'' means
                    the Secretary of Agriculture, acting through
                    the Administrator of the Rural Utilities
                    Service.
                      (E) Remote.--The term ``remote'' means a
                    region classified within level 3 or level 4 of
                    the frontier and remote ZIP Code areas
                    published by the Economic Research Service of
                    the Department of Agriculture.
              (3) Grants to eligible entities.--
                      (A) In general.--Subject to paragraph (B),
                    the Secretary shall make grants to eligible
                    entities for the purpose of reducing or
                    eliminating the cost associated with the
                    purchase or installation, or both, of satellite
                    broadband equipment to qualified consumers to
                    subscribe to satellite broadband service in
                    remote areas.
                      (B) Requirements.--As a condition of
                    receiving a grant under this subsection, an
                    eligible entity shall--
                              (i) provide retail broadband service
                            delivered via satellite technology to
                            qualified consumers, that--
                                      (I) enables a qualified
                                    consumer to the service to
                                    originate and receive high-
                                    quality voice, data, graphics,
                                    video; and
                                      (II) has a latency which does
                                    not exceed 250 milliseconds;
                              (ii) submit to the Secretary an
                            application at such time, in such
                            manner, and containing such other
                            information as the Secretary may
                            require;
                              (iii) agree to reduce or eliminate
                            the cost associated with the purchase,
                            installation, or both, of satellite
                            broadband equipment for qualified
                            consumers; and
                              (iv) agree to provide qualified
                            consumers with the reduction or
                            elimination of that cost within 1 year
                            of the assistance being obligated to
                            the eligible entity.
                      (C) Eligibility map of qualified consumers.--
                    Within 1 year after the date of the enactment
                    of this Act, and annually thereafter, the
                    Secretary shall publish a map of the remote
                    areas of qualified consumers that do not have
                    access to terrestrial broadband service of at
                    least--
                              (i) a 25-Mbps downstream transmission
                            capacity; and
                              (ii) a 3-Mbps upstream transmission
                            capacity.
      (d) Report.--Within 1 year after the date of the enactment of
    this section, and annually thereafter, the Secretary shall
    submit a comprehensive report to the Committee on Agriculture
    of the House of Representatives and the Committee on
    Agriculture, Nutrition, and Forestry of the Senate that shall
    provide the outcomes, effectiveness, and impact of the
    Innovative Broadband Advancement Program, including--
              (1) an assessment of the broadband infrastructure
            funded, including the scope, scale, nature and
            geographic locations of each award;
              (2) the broadband access and speeds achieved,
            including the download and upload speeds, latency, and
            overall network reliability;
              (3) any technical or logistical challenges
            encountered by the eligible entities; and
              (4) any recommendations for future innovative
            broadband deployment initiatives in rural areas.
      (e) Authorization of Appropriations.--There is authorized to
    be appropriated to carry out this section $10,000,000 for each
    of fiscal years 2027 through 2031.

    SEC. 604. COMMUNITY CONNECT GRANT PROGRAM.

      (a) Definitions.--In this section:
              (1) Eligible broadband service.--The term ``eligible
            broadband service'' means broadband service that has
            the capability to transmit data at a speed specified by
            the Secretary, which may not be less than the
            applicable minimum download and upload speeds
            established by the Federal Communications Commission in
            defining the term ``advanced telecommunications
            capability'' for purposes of section 706 of the
            Telecommunications Act of 1996 (47 U.S.C. 1302).
              (2) Eligible service area.--The term ``eligible
            service area'' means an area in which broadband service
            capacity is less than--
                      (A) a [10] 25-Mbps downstream transmission
                    capacity; and
                      (B) a [1] 3-Mbps upstream transmission
                    capacity.
              (3) Eligible entity.--
                      (A) In general.--The term ``eligible entity''
                    means a legally organized entity that--
                              (i) is--
                                      (I) an incorporated
                                    organization;
                                      (II) an Indian Tribe or
                                    Tribal organization;
                                      (III) a State;
                                      (IV) a unit of local
                                    government; or
                                      (V) any other legal entity,
                                    including a cooperative, a
                                    private corporation, or a
                                    limited liability company, that
                                    is organized on a for-profit or
                                    a not-for-profit basis; and
                              (ii) has the legal capacity and
                            authority to enter into a contract, to
                            comply with applicable Federal laws,
                            and to own and operate broadband
                            facilities, as proposed in the
                            application submitted by the entity for
                            a grant under the Program.
                      (B) Exclusions.--The term ``eligible entity''
                    does not include--
                              (i) an individual; or
                              (ii) a partnership.
              (4) Rural area.--The term ``rural area'' has the
            meaning given the term in section 601(b)(3)(A).
      (b) Establishment.--The Secretary shall establish a program,
    to be known as the ``Community Connect Grant Program'', to
    provide grants to eligible entities to finance broadband
    transmission in rural areas.
      (c) Eligible Projects.--An eligible entity that receives a
    grant under the Program shall use the grant to carry out a
    project that--
              (1) provides eligible broadband service to, within
            the proposed eligible service area described in the
            application submitted by the eligible entity--
                      (A) each essential community facility as
                    defined pursuant to section 306(a) of the
                    Consolidated Farm and Rural Development Act (7
                    U.S.C. 1926(a)); and
                      (B) any required facilities necessary to
                    offer that eligible broadband service to each
                    residential and business customer within such
                    proposed eligible service area; [and]
              (2) for not less than 2 years--
                      (A) furnishes free eligible broadband service
                    to a community center described in subsection
                    (d)(1)(B);
                      (B) provides not fewer than 2 computer access
                    points for that free eligible broadband
                    service; and
                      (C) covers the cost of bandwidth to provide
                    free eligible broadband service to each
                    essential community facility that requests
                    broadband services within the proposed eligible
                    service area described in the application
                    submitted by the eligible entity[.]; and
              (3) provides broadband speeds not less than the
            broadband project agreement requirements established
            under section 601(e)(4)(B)(ii) to the eligible entity
            within the proposed eligible service area.
      (d) Uses of Grant Funds.--
              (1) In general.--An eligible entity that receives a
            grant under the Program may use the grant for--
                      (A) the construction, acquisition, or leasing
                    of facilities (including spectrum), land, or
                    buildings to deploy eligible broadband service;
                    and
                      (B) the improvement, expansion, construction,
                    or acquisition of a community center within the
                    proposed eligible service area described in the
                    application submitted by the eligible entity.
              (2) Ineligible uses.--An eligible entity that
            receives a grant under the Program shall not use the
            grant for--
                      (A) the duplication of any existing eligible
                    broadband service provided by another entity in
                    the eligible service area; or
                      (B) operating expenses, except as provided
                    in--
                              (i) subsection (c)(2)(C) with respect
                            to free eligible broadband service; and
                              (ii) paragraph (1)(A) with respect to
                            spectrum.
              (3) Free access for community centers.--Of the
            amounts provided to an eligible entity under a grant
            under the Program, the eligible entity shall use to
            carry out paragraph (1)(B) not greater than the lesser
            of--
                      (A) 10 percent; and
                      (B) $150,000.
      (e) Matching Funds.--
              (1) In general.--An eligible entity that receives a
            grant under the Program shall provide a cash
            contribution in an amount that is not less than 15
            percent of the amount of the grant.
              (2) Requirements.--A cash contribution described in
            paragraph (1)--
                      (A) shall be used solely for the project for
                    which the eligible entity receives a grant
                    under the Program; and
                      (B) shall not include any Federal funds,
                    unless a Federal statute specifically provides
                    that those Federal funds may be considered to
                    be from a non-Federal source.
      (f) Applications.--
              (1) In general.--To be eligible to receive a grant
            under the Program, an eligible entity shall submit to
            the Secretary an application at such time, in such
            manner, and containing such information as the
            Secretary may require.
              (2) Requirement.--An application submitted by an
            eligible entity under paragraph (1) shall include
            documentation sufficient to demonstrate the
            availability of funds to satisfy the requirement of
            subsection (e).
      (g) Authorization of Appropriations.--There is authorized to
    be appropriated to carry out this section $50,000,000 for each
    of fiscal years [2019 through 2023] 2027 through 2031.

               *       *       *       *       *       *       *

    SEC. 607. RATE REGULATION.

      Nothing in this title authorizes the Secretary to regulate
    rates charged for broadband service.

    SEC. 608. LIMITATION ON OVERBUILDING.

      Any area in a proposed service area under this title shall
    not be considered unserved if an applicant in another Federal
    or State broadband program has received an obligation of
    funding to offer retail broadband service in the area not more
    than 5 years from the date of the obligation of funds, at a
    speed of at least 100 Mbps download and 20 Mbps upload.

                TITLE VII--GENERAL AND ADMINISTRATIVE PROVISIONS

    SEC. 701. PUBLIC NOTICE, ASSESSMENTS,  TECHNICAL ASSISTANCE, AND
                        REPORTING REQUIREMENTS.

      (a) Notice Requirements.--The Secretary shall promptly make
    available to the public, a fully searchable database on the
    website of the Rural Utilities Service that contains
    information on all retail broadband projects provided
    assistance or for which assistance is sought that are
    administered by the Secretary, including, at a minimum--
              (1) notice of each application for assistance
            describing the application, including--
                      (A) the identity of the applicant;
                      (B) a description of each application,
                    including--
                              (i) a map of the proposed service
                            area of the applicant, including a
                            complete shapefile map; and
                              (ii) the amount and type of support
                            requested by each applicant;
                      (C) the status of each application; and
                      (D) the estimated number and proportion of
                    service points in the proposed service
                    territory without fixed broadband service,
                    whether terrestrial or wireless;
              (2) notice of each entity receiving assistance
            administered by the Secretary, including--
                      (A) the name of the entity;
                      (B) the type of assistance being received;
                      (C) the purpose for which the entity is
                    receiving the assistance; and
                      (D) each annual report submitted under
                    subsection (c) (redacted to protect any
                    proprietary information in the report); and
              (3) such other information as is sufficient to allow
            the public to understand assistance provided.
      (b) Service Area Assessment.--
              (1) In general.--The Secretary shall, with respect to
            a retail broadband application for assistance, which is
            outside an area in which the applicant receives Federal
            universal service support--
                      (A) after giving notice required by
                    subsection (a)(1), afford service providers not
                    less than 45 days to voluntarily submit
                    information required by the Secretary onto the
                    agency's online mapping tool with respect to
                    areas that are coterminous with the proposed
                    service area of the application (or any parts
                    thereof), such that the Secretary may assess
                    whether the application submitted meets the
                    eligibility requirements under this title;
                    [and]
                      (B) validate the information submitted by
                    service providers under subparagraph (A)
                    through procedures established by the
                    Secretary, which shall include an agency
                    determination provided to the submitter, an
                    opportunity of the submitter to respond, and a
                    final non-appealable determination of the
                    Secretary; and
                      [(B)] (C) if no broadband service provider
                    submits information under [paragraph (1)]
                    subparagraph (A), consider the number of
                    providers in the proposed service area to be
                    established by using any other data regarding
                    the availability of broadband service that the
                    Secretary may collect or obtain through
                    reasonable efforts.
              [(2) Assessment of unserved communities.--][In the
            case of an application given the highest priority under
            section 601(c)(2)(A)(i), the Secretary shall confirm
            that each unserved rural community identified in the
            application is eligible for funding by--]
                      [(A) conferring with, and obtaining data
                    from, the Chair of the Federal Communications
                    Commission and the Administrator of the
                    National Telecommunications and Information
                    Administration with respect to the service
                    level in the service area proposed in the
                    application;]
              (2) Assessment of eligibility.--In making any
            determination to award a loan, loan guarantee, or grant
            for any retail broadband project provided assistance or
            for which assistance is sought that is administered by
            the Secretary, the Secretary shall confirm that each
            unserved rural community identified in the application
            is eligible for funding by--
                      (A) utilizing the map created by the Federal
                    Communications Commission under section
                    802(c)(1)(A) of the Communications Act of 1934
                    and the Deployment Locations Map established
                    under section 60104(b) of the Infrastructure
                    Investment and Jobs Act (47 U.S.C. 1704(b));
                      (B) reviewing any other source that is
                    relevant to service data validation, as
                    determined by the Secretary; and
                      (C) performing site-specific testing to
                    verify the unavailability of any retail
                    broadband service.
              (3) FOIA exemption.--For purposes of section 552 of
            title 5, United States Code, information received by
            the Secretary pursuant to paragraph (1)(A) of this
            subsection shall be exempt from disclosure pursuant to
            subsection (b)(2)(B) of such section 552.
      (c) Reporting Broadband Improvements to USDA.--
              (1) In general.--The Secretary shall require any
            entity receiving assistance for a project which
            provides retail broadband service to submit an annual
            report for 3 years after completion of the project, in
            a format specified by the Secretary, that describes--
                      (A) the use by the entity of the assistance,
                    including new equipment and capacity
                    enhancements that support high-speed broadband
                    access for educational institutions, health
                    care providers, and public safety service
                    providers (including the estimated number of
                    end users who are currently using or forecasted
                    to use the new or upgraded infrastructure); and
                      (B) the progress towards fulfilling the
                    objectives for which the assistance was
                    granted, including--
                              (i) the number of service points that
                            will receive new broadband service,
                            existing network service improvements,
                            and facility upgrades resulting from
                            the Federal assistance;
                              (ii) the speed of broadband service;
                              (iii) the average price of the most
                            subscribed tier of broadband service in
                            a proposed service area;
                              (iv) new subscribers generated from
                            the project; and
                              (v) any metrics the Secretary
                            determines to be appropriate.
              (2) Additional reporting.--
                      (A) Broadband buildout data.--As a condition
                    of receiving assistance under section 601, a
                    recipient of assistance shall provide to the
                    Secretary complete, reliable, and precise
                    geolocation information that indicates the
                    location of new broadband service that is being
                    provided or upgraded within the service
                    territory supported by the grant, loan, or loan
                    guarantee not later than 30 days after the
                    earlier of--
                              (i) the date of completion of any
                            project milestone established by the
                            Secretary; or
                              (ii) the date of completion of the
                            project.
                      (B) Reporting for middle mile projects.--The
                    Secretary shall require any entity receiving
                    assistance under section 602 to submit a
                    semiannual report for 5 years after completion
                    of the project, in a format specified by the
                    Secretary, that describes--
                              (i) the use by the entity of the
                            assistance to construct, improve, or
                            acquire middle mile infrastructure;
                              (ii) the progress towards meeting the
                            end-user connection plan submitted
                            under section 602(d)(1)(A)(iii); and
                              (iii) any additional metrics the
                            Secretary determines to be appropriate.
                      (C) Additional reporting.--The Secretary may
                    require any additional reporting and
                    information by any recipient of any broadband
                    assistance under this act so as to ensure
                    compliance with this section.
      (d) Annual Report on Broadband Projects and Service to
    Congress.--Each year, the Secretary shall submit to the
    Congress a report that describes the extent of participation in
    the broadband assistance programs administered by the Secretary
    for the preceding fiscal year, including a description of--
              (1) the number of applications received and accepted,
            including any special loan terms or conditions for
            which the Secretary provided additional assistance to
            unserved areas;
              (2)(A) the communities proposed to be served in each
            application submitted for the fiscal year; and
              (B) the communities served by projects funded by
            broadband assistance programs;
              (3) the period of time required to approve each loan
            application under broadband programs;
              (4) any outreach activities carried out by the
            Secretary to encourage entities in rural areas without
            broadband service to submit applications under this
            Act;
              (5) the method by which the Secretary determines that
            a service enables a subscriber to originate and receive
            high-quality voice, data, graphics, and video for
            purposes of providing broadband service under this Act;
              (6) each broadband service, including the type and
            speed of broadband service, for which assistance was
            sought, and each broadband service for which assistance
            was provided, under this Act; and
              (7) the overall progress towards fulfilling the goal
            of improving the quality of rural life by expanding
            rural broadband access, as demonstrated by metrics,
            including--
                      (A) the number of residences and businesses
                    receiving new broadband services;
                      (B) network improvements, including facility
                    upgrades and equipment purchases;
                      (C) average broadband speeds and prices on a
                    local and statewide basis;
                      (D) any changes in broadband adoption rates;
                    and
                      (E) any specific activities that increased
                    high speed broadband access for educational
                    institutions, health care providers, and public
                    safety service providers.
      [(e) Limitations on Reservation of Funds.--Not less than 3
    but not more than 5 percent of program level amounts available
    pursuant to amounts appropriated to carry out title VI shall be
    set aside to be used for--
              [(1) conducting oversight under such title;
              [(2) implementing accountability measures and related
            activities authorized under such title; and
              [(3) carrying out this section.]
      (e) Broadband Technical Assistance Program.--
              (1) In general.--The Secretary shall make grants to
            private, nonprofit, or public organizations to provide
            or receive eligible entities broadband technical
            assistance and training to expand access to broadband
            service in rural communities through the broadband
            programs of the Department of Agriculture including--
                      (A) preparing applications for grants, loans
                    and loan guarantees under this section;
                      (B) identifying resources to finance
                    broadband facilities from public and private
                    sources, including other Federal agencies;
                      (C) preparing feasibility studies, financial
                    forecasts, market surveys, environmental
                    studies, and technical design information to
                    support broadband services;
                      (D) preparing reports and surveys necessary
                    to support the need for broadband services, the
                    price range, and request financial assistance;
                      (E) analyzing and improving operations
                    related to the management, including financial
                    management, of broadband facilities and to the
                    efficiency of the entity;
                      (F) collecting broadband infrastructure data;
                    or
                      (G) assisting with other areas of need
                    identified by the Secretary.
              (2) Eligible entities.--To be eligible to obtain
            assistance under this subsection, an entity shall be--
                      (A) a federally recognized Tribe or Tribal
                    entity;
                      (B) a State or local government, including
                    any agency, subdivision, instrumentality, or
                    political subdivision thereof;
                      (C) a territory or possession of the United
                    States;
                      (D) an institution of higher education
                    (including a 1862 Land-Grant Institution, 1890
                    Land-Grant Institution, 1994 Land-Grant
                    Institution, Hispanic-Serving Institution, or
                    Historically Black College or University);
                      (E) a nonprofit organization described in
                    section 501(c)(3) of the Internal Revenue Code
                    of 1986;
                      (F) a cooperative or mutual organization;
                      (G) a corporation; or
                      (H) a limited liability company or limited
                    liability partnership.
              (3) Selection priority.--In selecting recipients of
            grants under this paragraph, the Secretary shall give
            priority to organizations that have experience in
            providing technical assistance and training to rural
            entities.
              (4) National applications.--The Secretary shall allow
            applications for grants under this paragraph from
            qualified organizations for the sole purpose of
            providing on-site community technical assistance and
            training on a national or multi-State regional basis.
      (f) Assistance for Community Broadband Mapping.--
              (1) In general.--The Secretary may make grants to
            eligible entities for the purpose of collecting
            broadband service data to assist the Secretary in--
                      (A) establishing the availability of
                    broadband service or middle mile infrastructure
                    in a rural area;
                      (B) determining the eligibility of a
                    community for assistance under any broadband
                    program administered by the Secretary;
                      (C) undertaking a service area assessment
                    under this section; or
                      (D) collecting information to submit a
                    challenge to the National Broadband Map created
                    by the Federal Communications Commission
                    pursuant to section 802(c)(1) of the
                    Communications Act of 1934 (47 U.S.C.
                    642(c)(1)).
              (2) Application.--To apply for a grant under this
            section, an entity shall submit an application which
            identifies--
                      (A) the data collection area;
                      (B) the purpose of the data collection;
                      (C) the types of broadband service data to be
                    collected;
                      (D) the survey and data collection methods
                    utilized; and
                      (E) any other information the Secretary
                    determines necessary to promote the integrity
                    of broadband service collected under this
                    section.
              (3) Limitation of grant amount.--The amount of a
            grant made available under this subsection shall not
            exceed $50,000.
              (4) Broadband service data usage.--The Secretary
            shall ensure that any broadband service data collected
            under this section is--
                      (A) measured or assessed in accordance with
                    such standards as are established by the
                    Federal Communications Commission pursuant to
                    section 802(a)(1)(A) of the Communications Act
                    of 1934 (47 U.S.C. 642(a)(1)(A));
                      (B) accurate and verifiable in accordance
                    with such standards as are established by the
                    Federal Communications Commission pursuant to
                    section 802(a)(1)(A) of the Communications Act
                    of 1934 (47 U.S.C. 642(a)(1)(A));
                      (C) included in any broadband maps or data
                    sets maintained by the Secretary; and
                      (D) made available to the Chair of the
                    Federal Communications Commission and the
                    Administrator of the National
                    Telecommunications and Information
                    Administration for inclusion in any broadband
                    maps or data sets either may maintain.
              (5) Definitions.--In this subsection:
                      (A) Broadband service.--The term ``broadband
                    service'' has the same meaning given the term
                    in section 601.
                      (B) Broadband service data.--
                              (i) In general.--The term ``broadband
                            service data'' means information
                            related to--
                                      (I) the location and type of
                                    broadband service;
                                      (II) the location and type of
                                    broadband infrastructure;
                                      (III) the advertised,
                                    maximum, and average speed of
                                    broadband service;
                                      (IV) the average price of the
                                    most subscribed tier of
                                    broadband service;
                                      (V) the speed tiers of
                                    broadband service available in
                                    the area; or
                                      (VI) any additional metric
                                    the Secretary deems
                                    appropriate.
                              (ii) Further definition.--The
                            Secretary shall further define the term
                            ``broadband service area'' to ensure
                            that data is measured and collected in
                            a manner consistent with the reporting
                            requirements under this section, and
                            any broadband coordination or data-
                            sharing obligations.
                      (C) Eligible entity.--The term ``eligible
                    entity'' means--
                              (i) a unit of local government in a
                            rural area;
                              (ii) a Tribal Government or unit of
                            Tribal Government;
                              (iii) an economic development or
                            other community organization;
                              (iv) an eligible entity under title I
                            or II that serves persons in rural
                            areas;
                              (v) an internet service provider that
                            has not more than 100,000 subscribers;
                            or
                              (vi) any other entity eligible under
                            a title VI program that is not an
                            internet service provider.
                      (D) Middle mile infrastructure.--The term
                    ``middle mile infrastructure'' has the meaning
                    given the term in section 602.
                      (E) Rural area.--The term ``rural area'' has
                    the meaning given the term in section 601.
              (6) Limitation on amount made available for grants.--
            The Secretary may not expend more than 1 percent of the
            amounts made available under subsection (g) for each of
            fiscal years 2027 through 2031 to carry out this
            subsection.
      (g) Limitations on Reservation of Funds.--Not less than 3 but
    not more than 5 percent of the amounts appropriated to the
    program to carry out title VI shall be set aside to be used
    for--
              (1) conducting oversight under such title;
              (2) implementing accountability measures and related
            activities authorized under such title; or
              (3) carrying out this section.

               *       *       *       *       *       *       *

                                  ----------

                NATIONAL AGRICULTURAL RESEARCH, EXTENSION, AND
                          TEACHING POLICY ACT OF 1977

               *       *       *       *       *       *       *

                  TITLE XIV--NATIONAL AGRICULTURAL RESEARCH,
                  EXTENSION, AND TEACHING POLICY ACT OF 1977

               *       *       *       *       *       *       *

                   Subtitle B--Coordination and Planning of
                Agricultural Research, Extension, and Teaching

               *       *       *       *       *       *       *

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

      (a) Establishment.--The Secretary shall establish within the
    Department of Agriculture a board to be known as the ``National
    Agricultural Research, Extension, Education, and Economics
    Advisory Board''.
      (b) Membership.--
              (1) In general.--The Advisory Board shall consist of
            [15] 16 members, appointed by the Secretary.
              (2) Selection of members.--The Secretary shall
            appoint members of the Advisory Board from nominations
            submitted by organizations, associations, societies,
            councils, federations, groups, and companies fitting
            the criteria specified in paragraph (3).
              (3) Membership categories.--The Advisory Board shall
            consist of members from each of the following
            categories:
                      (A) 3 members representing national farm or
                    producer organizations, which may include
                    members--
                              (i) representing farm cooperatives;
                              (ii) who are producers actively
                            engaged in the production of a food
                            animal commodity and who are
                            recommended by a coalition of national
                            livestock organizations;
                              (iii) who are producers actively
                            engaged in the production of a plant
                            commodity and who are recommended by a
                            coalition of national crop
                            organizations; or
                              (iv) who are producers actively
                            engaged in aquaculture and who are
                            recommended by a coalition of national
                            aquacultural organizations.
                      (B) 2 members representing academic or
                    research societies, which may include members
                    representing--
                              (i) a national food animal science
                            society;
                              (ii) a national crop, soil, agronomy,
                            horticulture, plant pathology, or weed
                            science society;
                              (iii) a national food science
                            organization;
                              (iv) a national human health
                            association; or
                              (v) a national nutritional science
                            society.
                      (C) 5 members representing agricultural
                    research, extension, and education, which shall
                    include each of the following:
                              (i) 1 member representing the land-
                            grant colleges and universities
                            eligible to receive funds under the Act
                            of July 2, 1862 (7 U.S.C. 301 et seq.).
                              (ii) 1 member representing the land-
                            grant colleges and universities
                            eligible to receive funds under the Act
                            of August 30, 1890 (7 U.S.C. 321 et
                            seq.), including Tuskegee University.
                              (iii) 1 member representing the 1994
                            Institutions (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)).
                              (iv) 1 member representing NLGCA
                            Institutions or Hispanic-serving
                            institutions.
                              (v) 1 member representing American
                            colleges of veterinary medicine.
                      (D) 5 members representing industry,
                    consumer, or rural interests, including members
                    representing--
                              (i) entities engaged in
                            transportation of food and agricultural
                            products to domestic and foreign
                            markets;
                              (ii) food retailing and marketing
                            interests;
                              (iii) food and fiber processors;
                              (iv) rural economic development
                            interests;
                              (v) a national consumer interest
                            group;
                              (vi) a national forestry group;
                              (vii) a national conservation or
                            natural resource group;
                              (viii) a national social science
                            association;
                              (ix) private sector organizations
                            involved in international development;
                            or
                              (x) a national association of
                            agricultural economists.
                      (E) 1 member representing the industry,
                    consumer, or rural interests of insular areas.
              (4) Ex officio members.--The Secretary, the Under
            Secretary of Agriculture for Research, Education, and
            Economics, the Administrator of the Agricultural
            Research Service, the Director of the National
            Institute of Food and Agriculture, the Administrator of
            the Economic Research Service, and the Administrator of
            the National Agricultural Statistics Service shall
            serve as ex officio members of the Advisory Board.
              (5) Officers.--At the first meeting of the Advisory
            Board each year, the members shall elect from among the
            members of the Advisory Board a chairperson, vice
            chairperson, and [7] 3 additional members to serve on
            the executive committee established under paragraph
            (6).
              (6) Executive committee.--The Advisory Board shall
            establish an executive committee charged with the
            responsibility of working with the Secretary and
            officers and employees of the Department of Agriculture
            to summarize and disseminate the recommendations of the
            Advisory Board.
              (7) Equal representation of public and private sector
            members.--In appointing members to serve on the
            Advisory Board, the Secretary shall ensure, to the
            maximum extent practicable, equal representation of
            public and private sector members.
      (c) Duties.--The Advisory Board shall--
              (1) make recommendations, review, and provide
            consultation to the Secretary, 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 on--
                      (A) long-term and short-term national
                    policies and priorities consistent with the--
                              (i) purposes specified in section
                            1402 for agricultural research,
                            extension, education, and economics;
                            and
                              (ii) priority areas of the
                            Agriculture and Food Research
                            Initiative specified in subsection
                            (b)(2) of the Competitive, Special, and
                            Facilities Research Grant Act (7 U.S.C.
                            3157(b)(2));
                      (B) the annual establishment of national
                    priorities that are in accordance with the
                    priority areas of the Agriculture and Food
                    Research Initiative specified in subsection
                    (b)(2) of the Competitive, Special, and
                    Facilities Research Grant Act (7 U.S.C.
                    3157(b)(2)).
              (2) evaluate the results and effectiveness of
            agricultural research, extension, education, and
            economics with respect to the policies and priorities
            and make recommendations to the Secretary based on such
            evaluation;
              (3) review and make recommendations to the Under
            Secretary of Agriculture for Research, Education, and
            Economics on the research, extension, education, and
            economics portion of the draft strategic plan required
            under section 306 of title 5, United States Code;
              (4) review and make recommendations on the mechanisms
            of the Department of Agriculture for technology
            assessment (which should be conducted by qualified
            professionals) for the purposes of--
                      (A) performance measurement and evaluation of
                    the implementation by the Secretary of the
                    strategic plan required under section 306 of
                    title 5, United States Code;
                      (B) implementation of national research
                    policies and priorities that are consistent
                    with the purposes specified in section 1402;
                    and
                      (C) the development of mechanisms for the
                    assessment of emerging public and private
                    agricultural research and technology transfer
                    initiatives; and
              (5) consult with industry groups on agricultural
            research, extension, education, and economics, and make
            recommendations to the Secretary based on that
            consultation.
      (d) Consultation.--
              (1) Duties of advisory board.--In carrying out this
            section, the Advisory Board shall consult with any
            appropriate agencies of the Department of Agriculture
            and solicit opinions and recommendations from persons
            who will benefit from and use federally funded
            agricultural research, extension, education, and
            economics.
              (2) Duties of secretary.--To comply with a provision
            of this title or any other law that requires the
            Secretary to consult or cooperate with the Advisory
            Board or that authorizes the Advisory Board to submit
            recommendations to the Secretary, the Secretary shall--
                      (A) solicit the written opinions and
                    recommendations of the Advisory Board; and
                      (B) provide a written response to the
                    Advisory Board regarding the manner and extent
                    to which the Secretary will implement
                    recommendations submitted by the Advisory
                    Board.
      (e) Appointment.--A member of the Advisory Board shall be
    appointed by the Secretary for a term of up to 3 years. The
    members of the Advisory Board shall be appointed to serve
    staggered terms.
      (f) Chapter 10 of Title 5, United States Code.--The Advisory
    Board shall be deemed to have filed a charter for the purpose
    of section 1008(c) of title 5, United States Code.
      (g) Annual Limitation on Advisory Board Expenses.--
              (1) Maximum amount.--Not more than $500,000 may be
            used to cover the necessary expenses of the Advisory
            Board for each fiscal year.
              (2) General limitation.--The expenses of the Advisory
            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 contained in any Act making
            appropriations for the Department of Agriculture,
            whether enacted before, on, or after the date of
            enactment of this paragraph, unless the appropriation
            Act specifically refers to this subsection and
            specifically includes this Advisory Board within the
            general limitation.
      (h) Termination.--The Advisory Board shall remain in
    existence until September 30, [2023] 2031.

    SEC. 1408A. SPECIALTY CROP COMMITTEE.

      (a) Establishment.--
              (1) In general.--[Not later than 90 days after the
            date of the enactment of the Specialty Crops
            Competitiveness Act of 2004, the executive committee of
            the Advisory Board shall establish, and appoint the
            initial members of] The Secretary shall continue to
            implement, and appoint the members of, a permanent
            specialty crops committee that will be responsible for
            studying the scope and effectiveness of research,
            extension, and economics programs affecting the
            specialty crop industry.
              (2) Citrus disease subcommittee.--
                      (A) In general.--Not later than 45 days after
                    the date of the enactment of the Agricultural
                    Act of 2014, the Secretary shall establish
                    within the specialty crops committee, and
                    appoint the initial members of, a citrus
                    disease subcommittee to carry out the
                    responsibilities of the subcommittee described
                    in subsection (g) in accordance with subsection
                    (j)(3) of section 412 of the Agricultural
                    Research, Extension, and Education Reform Act
                    of 1998 (7 U.S.C. 7632).
                      (B) Composition.--The citrus disease
                    subcommittee shall be composed of 11 members,
                    each of whom is a domestic producer of citrus
                    in a State, represented as follows:
                              (i) Five of such members shall
                            represent Arizona or California.
                              (ii) Five of such members shall
                            represent Florida.
                              (iii) One of such members shall
                            represent Texas.
                      (C) Membership.--The Secretary may appoint
                    individuals who are not members of the
                    specialty crops committee or the Advisory Board
                    established under section 1408 as members of
                    the citrus disease subcommittee.
                      (D) Termination.--The subcommittee
                    established under subparagraph (A) shall
                    terminate on September 30, [2023] 2031.
                      (E) Chapter 10 of title 5, united states
                    code.--The subcommittee established under
                    subparagraph (A) shall be covered by the
                    exemption to section 1008(c) of title 5, United
                    States Code, applicable to the Advisory Board
                    under section 1408(f).
      (b) Members.--
              (1) Eligibility.--Individuals who are not members of
            the Advisory Board may be appointed as members of the
            specialty crops committee.
              (2) Service.--Members of the specialty crops
            committee shall serve at the discretion of the
            [executive committee] Secretary.
              (3) Diversity.--Membership of the specialty crops
            committee shall reflect diversity in the specialty
            crops represented.
      (c) Annual Committee Report.--Not later than 180 days after
    the establishment of the specialty crops committee, and
    annually thereafter, the specialty crops committee shall submit
    to the Advisory Board a report containing the findings of its
    study under subsection (a). The specialty crops committee shall
    include in each report recommendations regarding the following:
              (1) Programs designed to improve the efficiency,
            productivity, and profitability of specialty crop
            production in the United States.
              (2) Research, extension, and teaching programs
            designed to improve competitiveness in the specialty
            crop industry, including programs that would--
                      (A) enhance the quality and shelf-life of
                    fresh fruits and vegetables, including their
                    taste and appearance;
                      (B) develop new crop protection tools and
                    expand the applicability and cost-effectiveness
                    of integrated pest management;
                      (C) prevent the introduction of foreign
                    invasive pests and diseases;
                      (D) develop new products and new uses of
                    specialty crops, including improving the
                    quality and taste of processed specialty crops;
                      (E) develop new and improved marketing tools
                    for specialty crops;
                      (F) enhance food safety regarding specialty
                    crops;
                      (G) improve the remote sensing and the
                    mechanization of production practices; and
                      (H) enhance irrigation techniques used in
                    specialty crop production.
              (3) Analyses of changes in macroeconomic conditions,
            technologies, and policies on specialty crop production
            and consumption, with particular focus on the effect of
            those changes on the financial stability of producers.
              (4) Development of data that provide applied
            information useful to specialty crop growers, their
            associations, and other interested beneficiaries in
            evaluating that industry from a regional and national
            perspective.
              (5) Analysis of the alignment of specialty crops
            committee recommendations with grants awarded through
            the specialty crop research initiative established
            under section 412 of the Agricultural Research,
            Extension, and Education Reform Act of 1998 (7 U.S.C.
            7632).
      (d) Consultation With Specialty Crop Industry.--In studying
    the scope and effectiveness of programs under subsection (a),
    the specialty crops committee shall consult on an ongoing basis
    with diverse sectors of the specialty crop industry.
      (e) Consideration by Secretary.--In preparing the annual
    budget recommendations for the Department of Agriculture, the
    Secretary shall take into consideration those findings and
    recommendations contained in the most-recent report of the
    specialty crops committee that are adopted by the Advisory
    Board.
      (f) Annual Report by Secretary.--In the budget material
    submitted to Congress by the Secretary in connection with the
    budget submitted pursuant to section 1105 of title 31, United
    States Code, for a fiscal year, the Secretary shall include a
    report describing how the Secretary addressed each
    recommendation of the specialty crops committee described in
    subsection (e).
      (g) Citrus Disease Subcommittee Duties.--For the purposes of
    subsection (j) of section 412 of the Agricultural Research,
    Extension, and Education Reform Act of 1998 (7 U.S.C. 7632),
    the citrus disease subcommittee shall--
              (1) advise the Secretary on citrus research,
            extension, and development needs;
              (2) propose, by a favorable vote of two-thirds of the
            members of the subcommittee, a research and extension
            agenda and annual budgets for the funds made available
            to carry out such subsection;
              (3) evaluate and review ongoing research and
            extension funded under the emergency citrus disease
            research and extension program (as defined in such
            subsection);
              (4) establish, by a favorable vote of two-thirds of
            the members of the subcommittee, annual priorities for
            the award of grants under such subsection;
              (5) provide the Secretary any comments on grants
            awarded under such subsection during the previous
            fiscal year; and
              (6) engage in regular consultation and collaboration
            with the Department and other institutional,
            governmental, and private persons conducting scientific
            research on, and extension activities related to, the
            causes or treatments of citrus diseases and pests, both
            domestic and invasive, for purposes of--
                      (A) maximizing the effectiveness of research
                    and extension projects funded under the citrus
                    disease research and extension program;
                      (B) hastening the development of useful
                    treatments;
                      (C) avoiding duplicative and wasteful
                    expenditures; and
                      (D) providing the Secretary with such
                    information and advice as the Secretary may
                    request.

               *       *       *       *       *       *       *

                              [secretary's report

      [Sec. 1410. The Secretary shall submit to the President and
    Congress by January 1 of each year a report on the Nation's
    agricultural research, extension, and teaching activities, and
    such report shall include--
              [(1) a review covering the following three categories
            of activities of the Department of Agriculture with
            respect to agricultural research, extension, and
            teaching activities and the relationship of these
            activities to similar activities of other departments
            and agencies of the Federal Government, the State,
            colleges and universities, and the private sector--
                      [(A) a current inventory of such activities
                    organized by statutory authorization and budget
                    outlay;
                      [(B) a current inventory of such activities
                    organized by field of basic and applied
                    science; and
                      [(C) a current inventory of such activities
                    organized by commodity and product category;
              [(2) any recommendations of the Advisory Board; and
              [(3) in the second and succeeding years, a five-year
            projection of national priorities with respect to
            agricultural research, extension, and teaching, taking
            into account both domestic and international needs.]

               *       *       *       *       *       *       *

                     Subtitle C--Agricultural Research and
                        Education Grants and Fellowships

               *       *       *       *       *       *       *

    SEC. 1415A. VETERINARY MEDICINE LOAN REPAYMENT.

      (a) Program.--
              (1) Service in shortage situations.--The Secretary
            shall carry out a program of entering into agreements
            with veterinarians under which the veterinarians agree
            to provide, for a period of time as determined by the
            Secretary and specified in the agreement, veterinary
            services in veterinarian shortage situations. For each
            year of such service under an agreement under this
            paragraph, the Secretary shall pay an amount, as
            determined by the Secretary and specified in the
            agreement, of the principal and interest of qualifying
            educational loans of the veterinarians.
              (2) Service to federal government in emergency
            situations.--
                      (A) In general.--The Secretary may enter into
                    agreements of 1 year duration with
                    veterinarians who have agreements pursuant to
                    paragraph (1) for such veterinarians to provide
                    services to the Federal Government in emergency
                    situations, as determined by the Secretary,
                    under terms and conditions specified in the
                    agreement. Pursuant to an agreement under this
                    paragraph, the Secretary shall pay an amount,
                    in addition to the amount paid pursuant to the
                    agreement in paragraph (1), as determined by
                    the Secretary and specified in the agreement,
                    of the principal and interest of qualifying
                    educational loans of the veterinarians.
                      (B) Requirements.--Agreements entered into
                    under this paragraph shall include the
                    following:
                              (i) A veterinarian shall not be
                            required to serve more than 60 working
                            days per year of the agreement.
                              (ii) A veterinarian who provides
                            service pursuant to the agreement shall
                            receive a salary commensurate with the
                            duties and shall be reimbursed for
                            travel and per diem expenses as
                            appropriate for the duration of the
                            service.
      [(b) Determination of Veterinarian Shortage Situations.--In
    determining ``veterinarian shortage situations'', the Secretary
    may consider--
              [(1) geographical areas that the Secretary determines
            have a shortage of veterinarians; and
              [(2) areas of veterinary practice that the Secretary
            determines have a shortage of veterinarians, such as
            food animal medicine, public health, epidemiology, and
            food safety.]
      (b) Determination of Veterinarian Shortage Situations.--In
    determining ``veterinarian shortage situations'', the
    Secretary--
              (1) may consider--
                      (A) geographical areas that the Secretary
                    determines have a shortage of veterinarians;
                      (B) areas of veterinary practice that the
                    Secretary determines have a shortage of
                    veterinarians, such as food animal medicine,
                    public health, epidemiology, and food safety;
                    and
                      (C) areas described in subparagraphs (A) and
                    (B) identified by appropriate State agencies;
                    and
              (2) shall--
                      (A) develop quantitative mechanisms for
                    predicting the emergence of new veterinarian
                    shortage situations in the short-term and long-
                    term; and
                      (B) make available to State agencies
                    described in paragraph (1)(C) the quantitative
                    mechanisms developed under subparagraph (A).
      (c) Administration.--
              (1) Authority.--The Secretary may carry out this
            program directly or enter into agreements with another
            Federal agency or other service provider to assist in
            the administration of this program.
              (2) Breach remedies.--
                      (A) In general.--Agreements with program
                    participants shall provide remedies for any
                    breach of an agreement by a participant,
                    including repayment or partial repayment of
                    financial assistance received, with interest.
                      (B) Amounts recovered.--Funds recovered under
                    this subsection shall be credited to the
                    account available to carry out this section and
                    shall remain available until expended.
              (3) Waiver.--The Secretary may grant a waiver of the
            repayment obligation for breach of contract in the
            event of extreme hardship or extreme need, as
            determined by the Secretary.
              (4) Amount.--The Secretary shall develop regulations
            to determine the amount of loan repayment for a year of
            service by a veterinarian. In making the determination,
            the Secretary shall consider the extent to which such
            determination--
                      (A) affects the ability of the Secretary to
                    maximize the number of agreements that can be
                    provided under the Veterinary Medicine Loan
                    Repayment Program from the amounts appropriated
                    for such agreements; and
                      (B) provides an incentive to serve in
                    veterinary service shortage areas with the
                    greatest need.
              (5) Qualifying educational loans.--Loan repayments
            provided under this section may consist of payments on
            behalf of participating individuals of the principal
            and interest on government and commercial loans
            received by the individual for attendance of the
            individual at an accredited college of veterinary
            medicine resulting in a degree of Doctor of Veterinary
            Medicine or the equivalent, which loans were made for--
                      (A) tuition expenses;
                      (B) all other reasonable educational
                    expenses, including fees, books, and laboratory
                    expenses, incurred by the individual; or
                      (C) reasonable living expenses as determined
                    by the Secretary.
              (6) Repayment schedule.--The Secretary may enter into
            an agreement with the holder of any loan for which
            payments are made under this section to establish a
            schedule for the making of such payments.
              (7) Tax liability.--In addition to educational loan
            repayments, the Secretary shall make such additional
            payments to participants as the Secretary determines to
            be appropriate for the purpose of providing
            reimbursements to participants for individual tax
            liability resulting from participation in this program.
              (8) Priority.--In administering the program, the
            Secretary shall give priority to agreements with
            veterinarians for the practice of food animal medicine
            in veterinarian shortage situations.
              (9) Eligibility.--The Secretary shall not make a
            veterinarian ineligible for the program under this
            section based on a veterinarian's participation in a
            comparable Federal, State, or local program.
              (10) Application process.--Not later than 1 year
            after the date of the enactment of the Farm, Food, and
            National Security Act of 2026, the Secretary shall
            establish streamlined application procedures and
            guidelines for entering into agreements with
            veterinarians under this section.
      (d) Use of Funds.--None of the funds appropriated to the
    Secretary under subsection (f) may be used to carry out section
    5379 of title 5, United States Code.
      (e) Regulations.--Notwithstanding subchapter II of chapter 5
    of title 5, United States Code, not later than 270 days after
    the date of enactment of this subsection, the Secretary shall
    promulgate regulations to carry out this section.
      (f) Authorization of Appropriations.--There are authorized to
    be appropriated for carrying out this section such sums as may
    be necessary and such sums shall remain available to the
    Secretary for the purposes of this section until expended.

    SEC. 1415B. VETERINARY SERVICES GRANT PROGRAM.

      (a) Definitions.--In this section:
              (1) Qualified entity.--The term ``qualified entity''
            means--
                      (A) a for-profit or nonprofit entity located
                    in the United States that, or an individual
                    who, operates a veterinary clinic providing
                    veterinary services--
                              (i) in a rural area[, as defined in
                            section 343(a) of the Consolidated Farm
                            and Rural Development Act (7 U.S.C.
                            1991(a))]; and
                              (ii) in a veterinarian shortage
                            situation;
                      (B) a State, national, allied, or regional
                    veterinary organization or specialty board
                    recognized by the American Veterinary Medical
                    Association;
                      (C) a college or school of veterinary
                    medicine accredited by the American Veterinary
                    Medical Association;
                      (D) a university research foundation or
                    veterinary medical foundation;
                      (E) a department of veterinary science or
                    department of comparative medicine accredited
                    by the Department of Education;
                      (F) a State agricultural experiment station;
                    or
                      (G) a State, local, or tribal government
                    agency.
              (2) Veterinarian shortage situation.--The term
            ``veterinarian shortage situation'' means a
            veterinarian shortage situation as determined by the
            Secretary under section 1415A.
              (3) Rural area.--The term ``rural area'' has the
            meaning given such term in section 343(a) of the
            Consolidated Farm and Rural Development Act (7 U.S.C.
            1991(a)).
      (b) Establishment.--
              (1) Competitive grants.--The Secretary shall carry
            out a program to make competitive grants to qualified
            entities that carry out programs or activities
            described in paragraph (2) for the purpose of
            developing, implementing, and sustaining veterinary
            services.
              (2) Eligibility requirements.--A qualified entity
            shall be eligible to receive a grant described in
            paragraph (1) if the entity carries out programs or
            activities that the Secretary determines will--
                      (A) substantially relieve veterinarian
                    shortage situations;
                      (B) expand, retain, or attract additional
                    veterinary practices in rural areas;
                      [(B)] (C) support or facilitate private
                    veterinary practices engaged in public health
                    activities; or
                      [(C)] (D) support or facilitate the practices
                    of veterinarians who are providing or have
                    completed providing services under an agreement
                    entered into with the Secretary under section
                    1415A(a)(2).
      (c) Award Processes and Preferences.--
              (1) Application, evaluation, and input processes.--In
            administering the grant program established under this
            section, the Secretary shall--
                      (A) use an appropriate application and
                    evaluation process, as determined by the
                    Secretary; and
                      (B) seek the input of interested persons.
              (2) Coordination preference.--In selecting recipients
            of grants to be used for any of the purposes described
            in subsection (d)(1), the Secretary shall give a
            preference to qualified entities that provide
            documentation of coordination with other qualified
            entities, with respect to any such purpose.
              (3) Consideration of available funds.--In selecting
            recipients of grants to be used for any of the purposes
            described in subsection (d), the Secretary shall take
            into consideration the amount of funds available for
            grants and the purposes for which the grant funds will
            be used.
              (4) Nature of grants.--A grant awarded under this
            section shall be considered to be a competitive
            research, extension, or education grant.
              (5) Application process.--Not later than 1 year after
            the date of enactment of the Farm, Food, and National
            Security Act of 2026 the Secretary shall establish a
            streamlined application process.
      (d) Use of Grants [To Relieve Veterinarian Shortage
    Situations and Support Veterinary Services].--
              (1) In general.--Except as provided in paragraph (2),
            a qualified entity may use funds provided by a grant
            awarded under this section to relieve veterinarian
            shortage [situations and support] situations, to
            expand, retain, or attract additional veterinary
            practices in rural areas, and to support veterinary
            services for any of the following purposes:
                      (A) To promote recruitment (including for
                    programs in secondary schools), placement, and
                    retention of veterinarians, veterinary
                    technicians, students of veterinary medicine,
                    and students of veterinary technology.
                      (B) To allow veterinary students, veterinary
                    interns, externs, fellows, and residents, and
                    veterinary technician students to cover
                    expenses (other than the types of expenses
                    described in section 1415A(c)(5)) to attend
                    training programs in food safety or food animal
                    medicine.
                      (C) To establish or expand accredited
                    veterinary education programs (including
                    faculty recruitment and retention), veterinary
                    residency and fellowship programs, or
                    veterinary internship and externship programs
                    carried out in coordination with accredited
                    colleges of veterinary medicine.
                      (D) To provide continuing education and
                    extension, including veterinary telemedicine
                    and other distance-based education, for
                    veterinarians, veterinary technicians, and
                    other health professionals needed to strengthen
                    veterinary programs and enhance food safety.
                      (E) To provide technical assistance for the
                    preparation of applications submitted to the
                    Secretary for designation as a veterinarian
                    shortage situation under this section or
                    section 1415A.
                      (F) To expose students in grades 11 and 12 to
                    education and career opportunities in food
                    animal medicine.
                      (G) To cover expenses associated with
                    starting a new veterinary practice or
                    attracting new veterinarians to existing
                    practices, including--
                              (i) relocation expenses;
                              (ii) the purchase of necessary
                            startup equipment; and
                              (iii) housing or living stipends for
                            veterinary students, veterinary
                            interns, externs, fellows, and
                            residents, and veterinary technician
                            students.
              (2) Qualified entities operating veterinary
            clinics.--A qualified entity described in subsection
            (a)(1)(A) may only use funds provided by a grant
            awarded under this section to establish or expand
            veterinary practices, including--
                      (A) equipping veterinary offices;
                      (B) sharing in the reasonable overhead costs
                    of such veterinary practices, as determined by
                    the Secretary; or
                      (C) establishing mobile veterinary facilities
                    in which a portion of the facilities will
                    address education or extension needs.
      (e) Special Requirements for Certain Grants.--
              (1) Terms of service requirements.--
                      (A) In general.--Funds provided through a
                    grant made under this section to a qualified
                    entity described in subsection (a)(1)(A) and
                    used by such entity under subsection (d)(2)
                    shall be subject to an agreement between the
                    Secretary and such entity that includes a
                    required term of service for such entity
                    (including a qualified entity operating as an
                    individual), as established by the Secretary.
                      (B) Considerations.--In establishing a term
                    of service under subparagraph (A), the
                    Secretary shall consider only--
                              (i) the amount of the grant awarded;
                            and
                              (ii) the specific purpose of the
                            grant.
              (2) Breach remedies.--
                      (A) In general.--An agreement under paragraph
                    (1) shall provide remedies for any breach of
                    the agreement by the qualified entity referred
                    to in paragraph (1)(A), including repayment or
                    partial repayment of the grant funds, with
                    interest.
                      (B) Waiver.--The Secretary may grant a waiver
                    of the repayment obligation for breach of
                    contract if the Secretary determines that such
                    qualified entity demonstrates extreme hardship
                    or extreme need.
                      (C) Treatment of amounts recovered.--Funds
                    recovered under this paragraph shall--
                              (i) be credited to the account
                            available to carry out this section;
                            and
                              (ii) remain available until expended
                            without further appropriation.
      (f) Prohibition on Use of Grant Funds for Construction.--
    Except as provided in subsection (d)(2), funds made available
    for grants under this section may not be used--
              (1) to construct a new building or facility; or
              (2) to acquire, expand, remodel, or alter an existing
            building or facility, including site grading and
            improvement and architect fees.
      (g) Regulations.--Not later than 1 year after the date of the
    enactment of this section, the Secretary shall promulgate
    regulations to carry out this section.
      (h) Authorization of Appropriations.--
              (1) In general.--There are authorized to be
            appropriated to the Secretary to carry out this section
            $10,000,000 for fiscal year 2014 and each fiscal year
            thereafter, to remain available until expended.
              (2) Priority.--From amounts made available for grants
            under this section, the Secretary shall prioritize
            grant awards for programs or activities with a focus on
            the practice of food animal medicine.

    SEC. 1417. GRANTS AND FELLOWSHIPS FOR FOOD AND AGRICULTURAL SCIENCES
                        EDUCATION.

      (a) Higher Education Teaching Programs.--The Secretary shall
    promote and strengthen higher education in the food and
    agricultural sciences by formulating and administering programs
    to enhance college and university teaching programs in
    agriculture, natural resources, forestry, veterinary medicine,
    home economics, disciplines closely allied to the food and
    agricultural system, and rural economic, community, and
    business development.
      (b) Grants.--The Secretary may make competitive grants (or
    grants without regard to any requirement for competition) to
    land-grant colleges and universities (including the University
    of the District of Columbia), to colleges and universities
    having significant minority enrollments and a demonstrable
    capacity to carry out the teaching of food and agricultural
    sciences, and to other colleges and universities having a
    demonstrable capacity to carry out the teaching of food and
    agricultural sciences, for a period not to exceed 5 years--
              (1) to strengthen institutional capacities, including
            curriculum, faculty, scientific instrumentation,
            instruction delivery systems, and student recruitment
            and retention, to respond to identified State,
            regional, national, or international educational needs
            in the food and agricultural sciences, or in rural
            economic, community, and business development;
              (2) to attract and support undergraduate and graduate
            students in order to educate the students in national
            need areas of the food and agricultural sciences, or in
            rural economic, community, and business development;
              (3) to facilitate cooperative initiatives between two
            or more eligible institutions, or between eligible
            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, or teaching
            programs emphasizing rural economic, community, and
            business development;
              (4) to design and implement food and agricultural
            programs, or programs emphasizing rural economic,
            community, and business development, to build teaching,
            research, and extension capacity at colleges and
            universities having significant minority enrollments;
              (5) to conduct undergraduate scholarship programs to
            meet national and international needs for training food
            and agricultural scientists and professionals, or
            professionals in rural economic, community, and
            business development; and
              (6) to conduct graduate and postdoctoral fellowship
            programs to attract highly promising individuals to
            research or teaching careers in the food and
            agricultural sciences.
      (c) Priorities.--In awarding grants under subsection (b), the
    Secretary shall give priority to--
              (1) applications for teaching enhancement projects
            that demonstrate enhanced coordination among all types
            of institutions eligible for funding under this
            section; and
              (2) applications for teaching enhancement projects
            that focus on innovative, multidisciplinary education
            programs, material, and curricula.
      (d) Eligibility for Grants.--
              (1) In general.--To be eligible for a grant under
            subsection (b), a recipient institution must have a
            significant demonstrable commitment to higher education
            teaching programs in the food and agricultural
            sciences, or in rural economic, community, and business
            development, and to each specific subject area for
            which the grant is to be used.
              (2) Minority groups.--The Secretary may set aside a
            portion of the funds appropriated for the awarding of
            grants under subsection (b), and make such amounts
            available only for grants to eligible colleges and
            universities (including the University of the District
            of Columbia) that the Secretary determines have unique
            capabilities for achieving the objective of full
            representation of minority groups in the food and
            agricultural sciences workforce, or in the rural
            economic, community, and business development
            workforce, of the United States.
              (3) Research foundations.--An eligible college or
            university under subsection (b) includes a research
            foundation maintained by the college or university.
      (e) Food and Agricultural Education Information System.--From
    amounts made available for grants under this section, the
    Secretary may maintain a national food and agricultural
    education information system that contains--
              (1) information on enrollment, degrees awarded,
            faculty, and employment placement in the food and
            agricultural sciences; and
              (2) such other similar information as the Secretary
            considers appropriate.
      (f) Evaluation of Teaching Programs.--The Secretary shall
    conduct programs to develop, analyze, and provide to colleges
    and universities data and information that are essential to the
    evaluation of the quality of teaching programs and to
    facilitate the design of more effective programs comprising the
    food and agricultural sciences higher education system of the
    United States.
      (g) Continuing Education.--The Secretary shall conduct
    special programs with colleges and universities, and with
    organizations in the private sector, to support educational
    initiatives to enable food and agricultural scientists and
    professionals to maintain their knowledge of changing
    technology, the expanding knowledge base, societal issues, and
    other factors that impact the skills and competencies needed to
    maintain the expertise base available to the agricultural
    system of the United States. The special programs shall include
    grants and technical assistance.
      (h) Transfers of Funds and Functions.--Funds authorized in
    section 22 of the Act of June 29, 1935 (49 Stat. 439, chapter
    338; 7 U.S.C. 329) are transferred to and shall be administered
    by the Secretary of Agriculture. There are transferred to the
    Secretary all the functions and duties of the Secretary of
    Education under such Act applicable to the activities and
    programs for which funds are made available under section 22 of
    such Act.
      (i) National Food and Agricultural Sciences Teaching,
    Extension, and Research Awards.--
              (1) Establishment.--
                      (A) In general.--The Secretary shall
                    establish a National Food and Agricultural
                    Sciences Teaching, Extension, and Research
                    Awards program to recognize and promote
                    excellence in teaching, extension, and research
                    in the food and agricultural sciences at a
                    college or university.
                      (B) Minimum requirement.--The Secretary shall
                    make at least 1 cash award in each fiscal year
                    to a nominee selected by the Secretary for
                    excellence in each of the areas of teaching,
                    extension, and research of food and
                    agricultural science at a college or
                    university.
              (2) Funding.--The Secretary may transfer funds from
            amounts appropriated for the conduct of any
            agricultural research, extension, or teaching program
            to an account established pursuant to this section for
            the purpose of making the awards. The Secretary may
            accept gifts in accordance with Public Law 95-442 (7
            U.S.C. 2269) for the purpose of making the awards.
      (j) Secondary Education, 2-Year Postsecondary Education, and
    Agriculture in the K-12 Classroom.--
              (1) Definitions.--In this subsection:
                      (A) Institution of higher education.--The
                    term ``institution of higher education'' has
                    the meaning given the term in section 101 of
                    the Higher Education Act of 1965.
                      (B) Secondary school.--The term ``secondary
                    school'' has the meaning given the term in
                    section 8101 of the Elementary and Secondary
                    Education Act of 1965.
              (2) Agriscience and agribusiness education.--The
            Secretary shall--
                      (A) promote and strengthen secondary
                    education and 2-year postsecondary education in
                    agriscience and agribusiness in order to help
                    ensure the existence in the United States of a
                    qualified workforce to serve the food and
                    agricultural sciences system; and
                      (B) promote complementary and synergistic
                    linkages among secondary, 2-year postsecondary,
                    and higher education programs in the food and
                    agricultural sciences in order to promote
                    excellence in education and encourage more
                    young Americans to pursue and complete a
                    baccalaureate or higher degree in the food and
                    agricultural sciences.
              (3) Grants.--The Secretary may make competitive or
            noncompetitive grants, for grant periods not to exceed
            5 years, to public secondary schools, institutions of
            higher education that award an associate's degree,
            other institutions of higher education, and nonprofit
            organizations, that the Secretary determines have made
            a commitment to teaching agriscience and agribusiness--
                      (A) to enhance curricula in agricultural
                    education;
                      (B) to increase faculty teaching
                    competencies;
                      (C) to interest young people in pursuing
                    higher education in order to prepare for
                    scientific and professional careers in the food
                    and agricultural sciences;
                      (D) to promote the incorporation of
                    agriscience and agribusiness subject matter
                    into other instructional programs, particularly
                    classes in science, business, and consumer
                    education;
                      (E) to facilitate joint initiatives by the
                    grant recipient with other secondary schools,
                    institutions of higher education that award an
                    associate's degree, and institutions of higher
                    education that award a bachelor's degree to
                    maximize the development and use of resources,
                    such as faculty, facilities, and equipment, to
                    improve agriscience and agribusiness education;
                      (F) to support other initiatives designed to
                    meet local, State, regional, or national needs
                    related to promoting excellence in agriscience
                    and agribusiness education; and
                      (G) to support current agriculture in the
                    classroom programs for grades K-12.
      (k) Administration.--Chapter 10 of title 5, United States
    Code, and title XVIII of the Food and Agriculture Act of 1977
    (7 U.S.C. 2281 et seq.) shall not apply to a panel or board
    created for the purpose of reviewing applications and proposals
    for grants or nominations for awards submitted under this
    section.
      (l) 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
    biennial report detailing the distribution of funds used to
    implement the teaching programs under subsection (j).
      (m) Authorization of Appropriations.--There are authorized to
    be appropriated for carrying out this section--
              (1) $60,000,000 for each of fiscal years 1990 through
            2013; and
              (2) $40,000,000 for each of fiscal years 2014 through
            [2023] 2031.

               *       *       *       *       *       *       *

    SEC. 1419A. AGRICULTURAL AND FOOD POLICY RESEARCH CENTERS.

      (a) In General.--Consistent with this section, the Secretary
    shall, acting through the Office of the Chief Economist, make
    competitive grants to, or enter into cooperative agreements
    with, policy research centers described in subsection (b) to
    conduct research and education programs that are objective,
    operationally independent, and external to the Federal
    Government and that concern the effect of public policies and
    trade agreements on--
              (1) the farm and agricultural sectors (including
            commodities, livestock, dairy, and specialty crops);
              (2) the environment;
              (3) rural families, households, and economies; and
              (4) consumers, food, and nutrition.
      (b) Eligible Recipients.--An entity eligible to apply for
    funding under subsection (a) is a State agricultural experiment
    station, college or university, or other public research
    institution or organization that has a history of providing--
              (1) unbiased, nonpartisan economic analysis to
            Congress on the areas specified in paragraphs (1)
            through (4) of subsection (a); or
              (2) objective, scientific information to Federal
            agencies and the public to support and enhance
            efficient, accurate implementation of Federal drought
            preparedness and drought response programs, including
            interagency thresholds used to determine eligibility
            for mitigation or emergency assistance.
      (c) Preference.--In making awards under this section, the
    Secretary shall give a preference to policy research centers
    that have--
              (1) extensive databases, models, and demonstrated
            experience in providing Congress with agricultural
            market projections, rural development analysis,
            agricultural policy analysis, and baseline projections
            at the farm, multiregional, national, and international
            levels; or
              (2) information, analysis, and research relating to
            drought mitigation.
      (d) Activities.--Under this section, funding may be provided
    for disciplinary and interdisciplinary research and education
    concerning policy research activities consistent with this
    section, including activities that--
              (1) quantify the implications of public policies and
            regulations;
              (2) develop theoretical and applied research methods;
              (3) collect, analyze, and disseminate data for
            policymakers, analysts, and individuals; and
              (4) develop programs to train analysts.
      (e) Authorization of Appropriations.--There are authorized to
    be appropriated to carry out this section $10,000,000 for each
    of fiscal years 2014 through [2023] 2031.

    SEC. 1419B. EDUCATION GRANTS TO ALASKA NATIVE SERVING INSTITUTIONS AND
                        NATIVE HAWAIIAN SERVING INSTITUTIONS..

      (a) Education Grants Program for Alaska Native Serving
    Institutions.--
              (1) Grant authority.--The Secretary of Agriculture
            may make competitive grants to Alaska Native serving
            institutions for the purpose of promoting and
            strengthening the ability of Alaska Native serving
            institutions to carry out education, applied research,
            and related community development programs. The term of
            such grants may be for a period of more than 1 year,
            but not more than 5 years.
              (2) Use of grant funds.--Grants made under this
            section shall be used--
                      (A) to support the activities of consortia of
                    Alaska Native serving institutions to enhance
                    educational equity for under represented
                    students;
                      (B) to strengthen institutional educational
                    capacities, including libraries, curriculum,
                    faculty, scientific instrumentation,
                    instruction delivery systems, and student
                    recruitment and retention, in order to respond
                    to identified State, regional, national, or
                    international educational needs in the food and
                    agriculture sciences;
                      (C) to attract and support undergraduate and
                    graduate students from under represented groups
                    in order to prepare them for careers related to
                    the food, agricultural, and natural resource
                    systems of the United States, beginning with
                    the mentoring of students at the high school
                    level including by village elders and
                    continuing with the provision of financial
                    support for students through their attainment
                    of a doctoral degree; and
                      (D) to facilitate cooperative initiatives
                    between two or more Alaska Native serving
                    institutions, or between Alaska Native serving
                    institutions and units of State government or
                    the private sector, to maximize the development
                    and use of resources, such as faculty,
                    facilities, and equipment, to improve food and
                    agricultural sciences teaching programs.
              (3) Authorization of appropriations.--There are
            authorized to be appropriated to make grants under this
            subsection $10,000,000 in fiscal years 2001 through
            [2023] 2031.
      (b) Education Grants Program for Native Hawaiian Serving
    Institutions.--
              (1) Grant authority.--The Secretary of Agriculture
            may make competitive grants to Native Hawaiian serving
            institutions for the purpose of promoting and
            strengthening the ability of Native Hawaiian serving
            institutions to carry out education, applied research,
            and related community development programs. The term of
            such grants may be for a period of more than 1 year,
            but not more than 5 years.
              (2) Use of grant funds.--Grants made under this
            section shall be used--
                      (A) to support the activities of consortia of
                    Native Hawaiian serving institutions to enhance
                    educational equity for under represented
                    students, including permitting consortia to
                    designate fiscal agents for the members of the
                    consortia and to allocate among the members
                    funds made available under this section;
                      (B) to strengthen institutional educational
                    capacities, including libraries, curriculum,
                    faculty, scientific instrumentation,
                    instruction delivery systems, and student
                    recruitment and retention, in order to respond
                    to identified State, regional, national, or
                    international educational needs in the food and
                    agriculture sciences;
                      (C) to attract and support undergraduate and
                    graduate students from under represented groups
                    in order to prepare them for careers related to
                    the food, agricultural, and natural resource
                    systems of the United States, beginning with
                    the mentoring of students at the high school
                    level and continuing with the provision of
                    financial support for students through their
                    attainment of a doctoral degree; and
                      (D) to facilitate cooperative initiatives
                    between two or more Native Hawaiian serving
                    institutions, or between Native Hawaiian
                    serving institutions and units of State
                    government or the private sector, to maximize
                    the development and use of resources, such as
                    faculty, facilities, and equipment, to improve
                    food and agricultural sciences teaching
                    programs.
              (3) Authorization of appropriations.--There are
            authorized to be appropriated to make grants under this
            subsection $10,000,000 for each of fiscal years 2001
            through [2023] 2031.

    [SEC. 1419C. NEXT GENERATION AGRICULTURE TECHNOLOGY CHALLENGE.

      [(a) In General.--The Secretary shall establish a next
    generation agriculture technology challenge competition to
    provide an incentive for the development of innovative mobile
    technology that removes barriers to entry in the marketplace
    for beginning farmers and ranchers (as defined in subsection
    (a) of section 2501 of the Food, Agriculture, Conservation, and
    Trade Act of 1990 (7 U.S.C. 2279)).
      [(b) Amount.--The Secretary may award not more than
    $1,000,000 in the aggregate to 1 or more winners of the
    competition under subsection (a).]

               *       *       *       *       *       *       *

                 Subtitle D--National Food and Human Nutrition
                         Research and Extension Program

               *       *       *       *       *       *       *

    SEC. 1425. NUTRITION EDUCATION PROGRAM.

      (a) Definition of 1862 Institution and 1890 Institution.--In
    this section, the terms ``1862 Institution'' and ``1890
    Institution'' have the meaning given those terms in section 2
    of the Agricultural Research, Extension, and Education Reform
    Act of 1998 (7 U.S.C. 7601).
      (b) Establishment.--The Secretary shall establish a national
    education program which shall include, but not be limited to,
    the dissemination of the results of food and human nutrition
    research performed or funded by the Department of Agriculture.
      (c) Employment and Training.--To enable low-income
    individuals and families to engage in nutritionally sound food
    purchase and preparation practices, the expanded food and
    nutrition education program conducted under section 3(d) of the
    Act of May 8, 1914 (7 U.S.C. 343(d)), shall provide for the
    employment and training of professional and paraprofessional
    aides to engage in direct nutrition education of low-income
    families and in other appropriate nutrition education programs.
    To the maximum extent practicable, such program aides shall be
    hired from the indigenous target population.
      (d) Allocation of Funding.--Beginning with the fiscal year
    ending September 30, 1982--
              (1) Any funds annually appropriated under section
            3(d) of the Act of May 8, 1914, for the conduct of the
            expanded food and nutrition education program, up to
            the amount appropriated under such section for such
            program for the fiscal year ending September 30, 1981,
            shall be allocated to each State in the same proportion
            as funds appropriated under such section for the
            conduct of the program for the fiscal year ending
            September 30, 1981, are allocated among the States;
            with the exception that the Secretary may retain up to
            2 per centum of such amount for the conduct of such
            program in States that did not participate in such
            program in the fiscal year ending September 30, 1981.
              (2) Any funds appropriated annually under section
            3(d) of the Act of May 8, 1914, for the conduct of the
            expanded food and nutrition education program in excess
            of the amount appropriated under such section for the
            conduct of the program for the fiscal year ending
            September 30, 1981, shall be allocated as follows:
                      (A) 4 per centum shall be available to the
                    Secretary for administrative, technical, and
                    other services necessary for the administration
                    of the program.
                      (B) Notwithstanding section 3(d) of the Act
                    of May 8, 1914 (7 U.S.C. 343(d)), the remainder
                    shall be allocated among the States as follows:
                              (i) $100,000 shall be distributed to
                            each 1862 Institution and 1890
                            Institution.
                              (ii) Subject to clause (iii), the
                            remainder shall be allocated to each
                            State in an amount that bears the same
                            ratio to the total amount to be
                            allocated under this clause as--
                                      (I) the population living at
                                    or below 125 percent of the
                                    income poverty guidelines (as
                                    prescribed by the Office of
                                    Management and Budget and as
                                    adjusted pursuant to section
                                    673(2) of the Community
                                    Services Block Grant Act (42
                                    U.S.C. 9902(2))) in the State;
                                    bears to
                                      (II) the total population
                                    living at or below 125 percent
                                    of those income poverty
                                    guidelines in all States;
                            as determined by the most recent
                            decennial census at the time at which
                            each such additional amount is first
                            appropriated.
                              (iii)(I) Before any allocation of
                            funds under clause (ii), for any fiscal
                            year for which the amount of funds
                            appropriated for the conduct of the
                            expanded food and nutrition education
                            program exceeds the amount of funds
                            appropriated for the program for fiscal
                            year 2007, the following percentage of
                            such excess funds for the fiscal year
                            shall be allocated to the 1890
                            Institutions in accordance with
                            subclause (II):
                                      (aa) 10 percent for fiscal
                                    year 2009.
                                      (bb) 11 percent for fiscal
                                    year 2010.
                                      (cc) 12 percent for fiscal
                                    year 2011.
                                      (dd) 13 percent for fiscal
                                    year 2012.
                                      (ee) 14 percent for fiscal
                                    year 2013.
                                      (ff) 15 percent for fiscal
                                    year 2014 and for each fiscal
                                    year thereafter.
                              (II) Funds made available under
                            subclause (I) shall be allocated to
                            each 1890 Institution in an amount that
                            bears the same ratio to the total
                            amount to be allocated under this
                            clause as--
                                      (aa) the population living at
                                    or below 125 percent of the
                                    income poverty guidelines (as
                                    prescribed by the Office of
                                    Management and Budget and as
                                    adjusted pursuant to section
                                    673(2) of the Community
                                    Services Block Grant Act (42
                                    U.S.C. 9902(2))) in the State
                                    in which the 1890 Institution
                                    is located; bears to
                                      (bb) the total population
                                    living at or below 125 percent
                                    of those income poverty
                                    guidelines in all States in
                                    which 1890 Institutions are
                                    located;
                            as determined by the most recent
                            decennial census at the time at which
                            each such additional amount is first
                            appropriated.
                              (iv) Nothing in this subparagraph
                            precludes the Secretary from developing
                            educational materials and programs for
                            persons in income ranges above the
                            level designated in this subparagraph.
      (e) Complementary Administration.--The Secretary shall ensure
    the complementary administration of the expanded food and
    nutrition education program by 1862 Institutions and 1890
    Institutions in a State.
      (f) Coordination.--Projects carried out with funds made
    available under section 3(d) of the Act of May 8, 1914 (7
    U.S.C. 343(d)), to carry out the program established under
    subsection (b) may be coordinated with the nutrition education
    and obesity prevention grant program under section 28 of the
    Food and Nutrition Act of 2008 (7 U.S.C. 2036a) or another
    health promotion or nutrition improvement strategy, whether
    publicly or privately funded, as determined by the Secretary.
      (g) Authorization of Appropriations.--There is authorized to
    be appropriated to carry out the expanded food and nutrition
    education program established under section 3(d) of the Act of
    May 8, 1914 (7 U.S.C. 343(d)), and this section $90,000,000 for
    each of fiscal years 2009 through [2023] 2031.

               *       *       *       *       *       *       *

                Subtitle E--Animal Health and Disease Research

               *       *       *       *       *       *       *

    SEC. 1433. CONTINUING ANIMAL HEALTH AND DISEASE, FOOD SECURITY, AND
                        STEWARDSHIP RESEARCH, EDUCATION, AND EXTENSION
                        PROGRAMS.

      (a) Capacity and Infrastructure Program.--
              (1) In general.--In each State with one or more
            accredited colleges of veterinary medicine, the deans
            of the accredited college or colleges and the director
            of the State agricultural experiment station shall
            develop a comprehensive animal health and disease
            research program for the State based on the animal
            health research capacity of each eligible institution
            in the State, which shall be submitted to the Secretary
            for approval and shall be used for the allocation of
            funds available to the State under this section.
              (2) Use of funds.--An eligible institution allocated
            funds to carry out animal health and disease research
            under this section may only use such funds--
                      (A) to meet the expenses of conducting animal
                    health and disease research, publishing and
                    disseminating the results of such research, and
                    contributing to the retirement of employees
                    subject to the Act of March 4, 1940 (7 U.S.C.
                    331);
                      (B) for administrative planning and
                    direction; and
                      (C) to purchase equipment and supplies
                    necessary for conducting research described in
                    subparagraph (A).
              (3) Cooperation among eligible institutions.--The
            Secretary, to the maximum extent practicable, shall
            encourage eligible institutions to cooperate in setting
            research priorities under this section through
            conducting regular regional and national meetings.
              (4) Carryover.--The balance of any annual funds
            provided to an eligible institution for a fiscal year
            under this subsection that remains unexpended at the
            end of that fiscal year may be carried over for use
            during the following fiscal year.
      (b) Competitive Grant Program.--
              (1) In general.--The Secretary, for purposes of
            addressing the critical needs of animal agriculture,
            shall award competitive grants to eligible entities
            under which such eligible entities--
                      (A) conduct research--
                              (i) to promote food security, such as
                            by--
                                      (I) improving feed
                                    efficiency;
                                      (II) improving energetic
                                    efficiency;
                                      (III) connecting genomics,
                                    proteomics, metabolomics and
                                    related phenomena to animal
                                    production;
                                      (IV) improving reproductive
                                    efficiency; and
                                      (V) enhancing pre- and post-
                                    harvest food safety systems;
                                    and
                              (ii) on the relationship between
                            animal and human health, such as by--
                                      (I) exploring new approaches
                                    for vaccine development;
                                      (II) understanding and
                                    controlling zoonosis, including
                                    its impact on food safety;
                                      (III) improving animal health
                                    through feed; and
                                      (IV) enhancing product
                                    quality and nutritive value;
                                    and
                      (B) develop and disseminate to the public
                    tools and information based on the research
                    conducted under subparagraph (A) and sound
                    science.
              (2) Eligible entities.--An entity eligible to receive
            a grant under this subsection is any of the following:
                      (A) A State cooperative institution.
                      (B) An NLGCA Institution.
              (3) Administration.--In carrying out this subsection,
            the Secretary shall establish procedures--
                      (A) to seek and accept proposals for grants;
                      (B) to review and determine the relevance and
                    merit of proposals, in consultation with
                    representatives of the animal agriculture
                    industry;
                      (C) to provide a scientific peer review of
                    each proposal conducted by a panel of subject
                    matter experts from Federal agencies, academic
                    institutions, State animal health agencies, and
                    the animal agriculture industry; and
                      (D) to award competitive grants on the basis
                    of merit, quality, and relevance.
      (c) Funding.--
              (1) Authorization of appropriations.--There are
            authorized to be appropriated to carry out this section
            $25,000,000 for each of fiscal years 2014 through
            [2023] 2031.
              (2) Reservation of funds.--The Secretary shall
            reserve not less than $5,000,000 of the funds made
            available under paragraph (1) to carry out the capacity
            and infrastructure program under subsection (a).
              (3) Initial Apportionment.--The amounts made
            available under paragraph (1) that are remaining after
            the reservation of funds under paragraph (2), shall be
            apportioned as follows:
                      (A) 15 percent of such amounts shall be used
                    to carry out the capacity and infrastructure
                    program under subsection (a).
                      (B) 85 percent of such funds shall be used to
                    carry out the competitive grant program under
                    subsection (b).
              (4) Additional apportionment.--The funds reserved
            under paragraph (2) and apportioned under paragraph
            (3)(A) to carry out the capacity and infrastructure
            program under subsection (a) shall be apportioned as
            follows:
                      (A) Four percent shall be retained by the
                    Department of Agriculture for administration,
                    program assistance to the eligible
                    institutions, and program coordination.
                      (B) 48 percent shall be distributed among the
                    several States in the proportion that the value
                    of and income to producers from domestic
                    livestock, poultry, and commercial aquaculture
                    species in each State bears to the total value
                    of and income to producers from domestic
                    livestock, poultry, and commercial aquaculture
                    species in all the States. The Secretary shall
                    determine the total value of and income from
                    domestic livestock, poultry, and commercial
                    aquaculture species in all the States and the
                    proportionate value of and income from domestic
                    livestock, poultry, and commercial aquaculture
                    species for each State, based on the most
                    current inventory of all cattle, sheep, swine,
                    horses, poultry, and commercial aquaculture
                    species published by the Department of
                    Agriculture.
                      (C) 48 percent shall be distributed among the
                    several States in the proportion that the
                    animal health research capacity of the eligible
                    institutions in each State bears to the total
                    animal health research capacity in all the
                    States. The Secretary shall determine the
                    animal health research capacity of the eligible
                    institutions.
              (5) Special rules for apportionment of certain
            funds.--With respect to funds reserved under paragraph
            (2) and apportioned under paragraph (3)(A) to carry out
            the capacity and infrastructure program under
            subsection (a), the following shall apply:
                      (A) When the amount available under this
                    section for allotment to any State on the basis
                    of domestic livestock, poultry, and commercial
                    aquaculture species values and incomes exceeds
                    the amount for which the eligible institution
                    or institutions in the State are eligible on
                    the basis of animal health research capacity,
                    the excess may be used, at the discretion of
                    the Secretary, for remodeling of facilities,
                    construction of new facilities, or increase in
                    staffing, proportionate to the need for added
                    research capacity.
                      (B) Whenever a new college of veterinary
                    medicine is established in a State and is
                    accredited, the Secretary, after consultation
                    with the dean of such college and the director
                    of the State agricultural experiment station
                    and where applicable, deans of other accredited
                    colleges in the State, shall provide for the
                    reallocation of funds available to the State
                    pursuant to paragraph (4) between the new
                    college and other eligible institutions in the
                    State, based on the animal health research
                    capacity of each eligible institution.
                      (C) Whenever two or more States jointly
                    establish an accredited regional college of
                    veterinary medicine or jointly support an
                    accredited college of veterinary medicine
                    serving the States involved, the Secretary is
                    authorized to make funds which are available to
                    such States pursuant to paragraph (4) available
                    for such college in such amount that reflects
                    the combined relative value of, and income
                    from, domestic livestock, poultry, and
                    commercial aquaculture species in the
                    cooperating States, such amount to be adjusted,
                    as necessary, pursuant to subsection (a)(1) and
                    subparagraph (B).

               *       *       *       *       *       *       *

                  Subtitle G--1890 Land-Grant College Funding

    SEC. 1444. EXTENSION AT 1890 LAND-GRANT COLLEGES, INCLUDING TUSKEGEE
                        UNIVERSITY.

      (a) Authorization of Appropriations.--
              (1) In general.--There are hereby authorized to be
            appropriated annually such sums as Congress may
            determine necessary to support continuing agricultural
            and forestry extension at colleges eligible to receive
            funds under the Act of August 30, 1890 (26 Stat. 417-
            419, as amended; 7 U.S.C. 321-326 and 328), including
            Tuskegee University (hereinafter in this section
            referred to as ``eligible institutions'').
              (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 [20
            percent] 40 percent of the total appropriations for
            such year under the Act of May 8, 1914 (7 U.S.C. 341 et
            seq.), and related acts pertaining to cooperative
            extension work at the land-grant institutions
            identified in the Act of May 8, 1914 (38 Stat. 372,
            chapter 79; 7 U.S.C. 341 et seq.), except that for the
            purpose of this calculation, the total appropriations
            shall not include amounts made available under section
            3(d) of that Act (7 U.S.C. 343(d)).
              (3) Uses.--Funds appropriated under this section
            shall be used for expenses of conducting extension
            programs and activities, and for contributing to the
            retirement of employees subject to the provisions of
            the Act of March 4, 1940 (54 Stat. 30-40, as amended; 7
            U.S.C. 331).
      (b) Distribution of Funds.--
              (1) In general.--Funds made available under this
            sectionshall be distributed among eligible institutions
            in accordancewith this subsection.
              (2) Base amount.--Any funds annually appropriated
            under this section up to the amount appropriated for
            the fiscal year ending September 30, 1978, pursuant to
            section 3(d) of the Act of May 8, 1914, as amended, for
            eligible institutions, shall be allocated among the
            eligible institutions in the same proportion as funds
            appropriated under section 3(d) of the Act of May 8,
            1914, as amended, for the fiscal year ending September
            30, 1978, were allocated among the eligible
            institutions, as so designatedas of that date.
              (3) Additional amount.--Any finds appropriated
            annually under this section in excess of an amount
            equal to the amount appropriated under section 3(d) of
            the Act of May 8, 1914, for the fiscal year ending
            September 30, 1978, for eligible institutions, shall be
            distributed as follows:
                      (A) A sum equal to 4 per centum of the total
                    amount appropriated each fiscal year under this
                    section shall be allotted to the National
                    Institute of Food and Agriculture of the
                    Department of Agriculture for administrative,
                    technical, and other services, and for
                    coordinating the extension work of the
                    Department of Agriculture and the several
                    States.
                      (B) Except as provided in paragraph (4),
                    ofthe remainder, 20 per centum shall be
                    allotted among the eligible institutions in
                    equal proportions; 40 per centum shall be
                    allotted among the eligible institutions in the
                    proportion that the rural population of the
                    State in which each eligible institution is
                    located bears to the total rural population of
                    all the States in which eligible institutions
                    are located, as determined by the last
                    preceding decennial census current at the time
                    each such additional sum is first appropriated;
                    and the balance shall be allotted amount the
                    eligible institutions in the proportion that
                    the farm population of the State in which each
                    eligible institution is located bears to the
                    total farm population of all the States in
                    which the eligible institutions are located, as
                    determined by the last preceding decennial
                    census current at the time each such additional
                    sum is first appropriated.
                      (C) In computing the distribution of funds
                    allocated under this paragraph, the allotments
                    to Tuskegee University and Alabama Agricultural
                    and Mechanical University shall be determined
                    as if each institution were in a separate
                    State.
              (4) Special amounts.--
                      (A) Definitions.--In this paragraph:
                              (i) Covered fiscal year.--The term
                            ``covered fiscal year'' means the
                            fiscal year for which the qualified
                            eligible institution first received an
                            allocation of $3,000,000 under
                            subparagraph (B)(i).
                              (ii) Other eligible institution.--The
                            term ``other eligible institution''
                            means an eligible institution, other
                            than the qualified eligible
                            institution, receiving an allocation of
                            funds under this section.
                              (iii) Qualified eligible
                            institution.--The term ``qualified
                            eligible institution'' means the
                            eligible institution described in
                            subparagraph (B)(i).
                      (B) Fiscal year 2019, 2020, 2021, or 2022.--
                              (i) In general.--Subject to clause
                            (ii), for 1 of fiscal year 2019, 2020,
                            2021, or 2022, if the calculation under
                            paragraph (3)(B) would result in a
                            distribution for a fiscal year of less
                            than $3,000,000 to an eligible
                            institution that first received funds
                            under this section on a date occurring
                            after the date of enactment of the
                            Agricultural Act of 2014 (Public Law
                            113-79; 128 Stat. 649) and before
                            September 30, 2018, that institution
                            shall receive an allocation of
                            $3,000,000 for that fiscal year.
                              (ii) Limitation.--Clause (i) shall
                            apply only if amounts are appropriated
                            under this section in an amount
                            sufficient to provide that each other
                            eligible institution receiving an
                            allocation of funds under this section
                            for fiscal year 2019, 2020, 2021, or
                            2022, as applicable, receives not less
                            than the amount of funds received by
                            that other eligible institution under
                            this section for the preceding fiscal
                            year.
                      (C) Subsequent fiscal years.--
                              (i) Minimum additional funding
                            amounts.--Subject to clauses (ii) and
                            (iii), for each fiscal year following
                            the covered fiscal year--
                                      (I) the qualified eligible
                                    institution shall receive an
                                    allocation under this
                                    subsection of at least
                                    $3,000,000; and
                                      (II) each other eligible
                                    institution shall receive an
                                    allocation under this
                                    subsection of at least the
                                    amount received by such other
                                    eligible institution under this
                                    subsection for the covered
                                    fiscal year.
                              (ii) Shortfall of special amounts.--
                                      (I) Applicability.--This
                                    clause shall apply to any
                                    fiscal year following the
                                    covered fiscal year and for
                                    which the total amount
                                    appropriated under this section
                                    is insufficient to provide for
                                    the minimum additional funding
                                    amounts described in clause
                                    (i).
                                      (II) Reductions in
                                    allocations.--In the case of a
                                    fiscal year to which this
                                    clause applies, reductions in
                                    allocations shall be made
                                    proportionally from the
                                    qualified eligible institution
                                    and from each other eligible
                                    institution based on the
                                    increased amounts (if any) that
                                    the qualified eligible
                                    institution and each other
                                    eligible institution were
                                    allocated for the covered
                                    fiscal year as compared to the
                                    fiscal year immediately
                                    preceding the covered fiscal
                                    year.
                              (iii) Effect of census.--Clauses (i)
                            and (ii) shall not apply in any fiscal
                            year for which a shortfall in the
                            minimum additional funding amounts
                            described in clause (i) is attributable
                            to the incorporation of new census data
                            into the calculation under paragraph
                            (3), as determined by the Secretary.
      (c) The State director of the cooperative extension service
    and the extension administrator at the eligible institution in
    each State where an eligible institution is located shall
    jointly develop, by mutual agreement, a comprehensive program
    of extension for such State to be submitted for approval by the
    Secretary within one year after the date of enactment of this
    title and each five years thereafter.
      (d) Ascertainment of Entitlement to Funds; Time and Manner of
    Payment; State Reporting Requirements; Plans of Work.--
              (1) Ascertainment of entitlement.--On or about the
            first day of October in each year after enactment of
            this title, the Secretary shall ascertain whether each
            eligible institution is entitled to receive its share
            of the annual appropriation for extension work under
            this section and the amount which it is entitled to
            receive. Before the funds herein provided shall become
            available to any eligible institution for any fiscal
            year, plans for the work to be carried out under this
            section shall be submitted, as part of the State plan
            of work, and approved by the Secretary.
              (2) Time and manner of payment; related reports.--The
            amount to which an eligible institution is entitled
            shall be paid in equal quarterly payments on or about
            October 1, January 1, April 1, and July 1 of each year
            to the treasurer or other officer of the eligible
            institution duly authorized to receive such payments
            and such officer shall be required to report to the
            Secretary on or about the first day of December of each
            year a detailed statement of the amount so received
            during the previous fiscal year and its disbursement,
            on forms prescribed by the Secretary.
              (3) Requirements related to plan of work.--Each plan
            of work for an eligible institution required under this
            section shall contain descriptions of the following:
                      (A) A summary of planned projects or programs
                    in the State using formula funds.
                      (B) A description of matching funds provided
                    by the State with respect to the previous
                    fiscal year.
              (4) Extension protocols.--
                      (A) In general.--The Secretary shall develop
                    protocols to be used to evaluate the success of
                    multistate, multi-institutional, and
                    multidisciplinary extension activities and
                    joint research and extension activities in
                    addressing critical agricultural issues
                    identified in the plans of work submitted under
                    this section.
                      (B) Consultation.--The Secretary shall
                    develop the protocols in consultation with the
                    Advisory Board and land-grant colleges and
                    universities.
              (5) Treatment of plans of work for other purposes.--
            To the maximum extent practicable, the Secretary shall
            consider a plan of work submitted under this section to
            satisfy other appropriate Federal reporting
            requirements.
      (e) If any portion of the moneys received by any eligible
    institution for the support and maintenance of extension work
    as provided in this section shall by any action or contingency
    be diminished or lost or be misapplied, it shall be replaced by
    such institution and until so replaced no subsequent
    appropriation shall be apportioned or paid to such institution.
    No portion of such moneys shall be applied, directly or
    indirectly, to the purchase, erection, preservation, or repair
    of any building or buildings, or the purchase or rental of
    land, or in college course teaching, lectures in college, or
    any other purpose not specified in this section. It shall be
    the duty of such institution, annually, on or about the first
    day of January, to make to the Governor of the State in which
    it is located a full and detailed report of its operations in
    extension work, including a detailed statement of receipts and
    expenditures from all sources for this purpose, a copy of which
    report shall be sent to the Secretary.
      (f) To the extent that the official mail consists of
    correspondence, bulletins, and reports for furtherance of the
    purposes of this section, it shall be transmitted in the mails
    of the United States. Such items may be mailed from a principal
    place of business of each eligible institution or from an
    established subunit of such institution.

    SEC. 1445. AGRICULTURAL RESEARCH AT 1890 LAND-GRANT COLLEGES, INCLUDING
                        TUSKEGEE UNIVERSITY.

      (a) Authorization of Appropriations.--
              (1) In general.--There are hereby authorized to be
            appropriated annually such sums as Congress may
            determine necessary to support continuing agricultural
            research at colleges eligible to receive funds under
            the Act of August 30, 1890 (26 Stat. 417-419, as
            amended; 7 U.S.C. 321-326 and 328), including Tuskegee
            University (hereinafter referred to in this section as
            ``eligible institutions'').
              (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 [30
            percent] 40 percent of the total appropriations for the
            fiscal year under section 3 of the Hatch Act of 1887 (7
            U.S.C. 361c).
              (3) Uses.--Funds appropriated under this section
            shall be used for expenses of conducting agricultural
            research, printing, disseminating the results of such
            research, contributing to the retirement of employees
            subject to the provisions of the Act of March 4, 1940
            (54 Stat. 39-40, as amended; 7 U.S.C. 331),
            administrative planning and direction, and purchase and
            rental of land and the construction, acquisition,
            alteration, or repair of buildings necessary for
            conducting agricultural research.
              (4) Coordination.--The eligible institutions are
            authorized to plan and conduct agricultural research in
            cooperation with each other and such agencies,
            institutions, and individuals as may contribute to the
            solution of agricultural problems, and moneys
            appropriated pursuant to this section shall be
            available for paying the necessary expenses of
            planning, coordinating, and conducting such cooperative
            research.
              (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.
      (b) Distribution of Funds.--
              (1) In general.--Funds made available under this
            sectionshall be distributed among eligible institutions
            in accordancewith this subsection.
              (2) Administration.--3 percent shall be available to
            the Secretary for administration of this section. These
            administrative funds may be used for transportation of
            scientists who are not officers or employees of the
            United States to research meetings convened for the
            purpose of assessing research opportunities or research
            planning.
              (3) Distributions.--
                      (A) In general.--After allocating amounts
                    underparagraph (2), the remainder shall be
                    allotted among theeligible institutions in
                    accordance with this paragraph.
                      (B) Base amount.--Funds up to the total
                    amount made available to all eligible
                    institutions in the fiscal year ending
                    September 30, 1978, under section 2 of the Act
                    of August 4, 1965 (79 Stat. 431; 7 U.S.C.
                    450i), shall be allocated among the eligible
                    institutions in the same proportion as funds
                    made available under section 2 of the Act of
                    August 4, 1965, for the fiscal year ending
                    September 30, 1978, wereallocated among the
                    eligible institutions, as so designated as of
                    thatdate.
                      (C) Additional amount.--Except as provided
                    insubparagraph (D), of funds in excess of the
                    amount allocated under subparagraph (A) of this
                    paragraph, 20 per centum shall be allotted
                    among eligible institutions in equal
                    proportions; 40 per centum shall be allotted
                    among the eligible institutions in the
                    proportion that the rural population of the
                    State in which each eligible institution is
                    located bears to the total rural population of
                    all the States in which eligible institution
                    are located, as determined by the last
                    preceding decennial census current at the time
                    each such additional sum is first appropriated;
                    and the balance shall be allotted among the
                    eligible institutions in the proportion that
                    the farm population of the State in which each
                    eligible institution is located bears to the
                    total farm population of all the States in
                    which the eligible institutions are located, as
                    determined by the last preceding decennial
                    census current at the time each such additional
                    sum is first appropriated. In computing the
                    distribution of funds allocated under this
                    subparagraph, the allotments to Tuskegee
                    University and Alabama Agricultural and
                    Mechanical University shall be determined as if
                    each institution were in a separate State.
                      (D) Special amounts.--
                              (i) Definitions.--In this
                            subparagraph:
                                      (I) Covered fiscal year.--The
                                    term ``covered fiscal year''
                                    means the fiscal year for which
                                    the qualified eligible
                                    institution first received an
                                    allocation of $3,000,000 under
                                    clause (ii)(I).
                                      (II) Other eligible
                                    institution.--The term ``other
                                    eligible institution'' means an
                                    eligible institution, other
                                    than the qualified eligible
                                    institution, receiving an
                                    allocation of funds under this
                                    section.
                                      (III) Qualified eligible
                                    institution.--The term
                                    ``qualified eligible
                                    institution'' means the
                                    eligible institution described
                                    in clause (ii)(I).
                              (ii) Fiscal year 2019, 2020, 2021, or
                            2022.--
                                      (I) In general.--Subject to
                                    subclause (II), for 1 of fiscal
                                    year 2019, 2020, 2021, or 2022,
                                    if the calculation under
                                    subparagraph (C) would result
                                    in a distribution for a fiscal
                                    year of less than $3,000,000 to
                                    an eligible institution that
                                    first received funds under this
                                    section on a date occurring
                                    after the date of enactment of
                                    the Agricultural Act of 2014
                                    (Public Law 113-79; 128 Stat.
                                    649) and before September 30,
                                    2018, that institution shall
                                    receive an allocation of
                                    $3,000,000 for that fiscal
                                    year.
                                      (II) Limitation.--Subclause
                                    (I) shall apply only if amounts
                                    are appropriated under this
                                    section in an amount sufficient
                                    to provide that each other
                                    eligible institution receiving
                                    an allocation of funds under
                                    this section for fiscal year
                                    2019, 2020, 2021, or 2022, as
                                    applicable, receives not less
                                    than the amount of funds
                                    received by that other eligible
                                    institution under this section
                                    for the preceding fiscal year.
                              (iii) Subsequent fiscal years.--
                                      (I) Minimum additional
                                    funding amounts.--Subject to
                                    subclauses (II) and (III), for
                                    each fiscal year following the
                                    covered fiscal year--
                                              (aa) the qualified
                                            eligible institution
                                            shall receive an
                                            allocation under this
                                            paragraph of at least
                                            $3,000,000; and
                                              (bb) each other
                                            eligible institution
                                            shall receive an
                                            allocation under this
                                            paragraph of at least
                                            the amount received by
                                            such other eligible
                                            institution under this
                                            subsection for the
                                            covered fiscal year.
                                      (II) Shortfall of special
                                    amounts.--
                                              (aa) Applicability.--
                                            This subclause shall
                                            apply to any fiscal
                                            year following the
                                            covered fiscal year and
                                            for which the total
                                            amount appropriated
                                            under this subsection
                                            is insufficient to
                                            provide for the minimum
                                            additional funding
                                            amounts described in
                                            subclause (I).
                                              (bb) Reductions in
                                            allocations.--In the
                                            case of a fiscal year
                                            to which this subclause
                                            applies, reductions in
                                            allocations shall be
                                            made proportionally
                                            from the qualified
                                            eligible institution
                                            and from each other
                                            eligible institution
                                            based on the increased
                                            amounts (if any) that
                                            the qualified eligible
                                            institution and each
                                            other eligible
                                            institution were
                                            allocated for the
                                            covered fiscal year as
                                            compared to the fiscal
                                            year immediately
                                            preceding the covered
                                            fiscal year.
                                      (III) Effect of census.--
                                    Subclauses (I) and (II) shall
                                    not apply in any fiscal year
                                    for which a shortfall in the
                                    minimum additional funding
                                    amounts described in subclause
                                    (I) is attributable to the
                                    incorporation of new census
                                    data into the calculation under
                                    paragraph (3)(C), as determined
                                    by the Secretary.
      (c) Program and Plans of Work.--
              (1) Initial comprehensive program of agricultural
            research.--The director of the State agricultural
            experiment station in each State where an eligible
            institution is located and [the research director] the
            agricultural research director specified in subsection
            (d) of this section in each of the eligible
            institutions in such State shall jointly develop, by
            mutual agreement, a comprehensive program of
            agricultural research in such State, to be submitted
            for approval by the Secretary within one year after the
            date of enactment of this title.
              (2) Plan of work required.--Before funds may be
            provided to an eligible institution under this section
            for any fiscal year, a plan of work to be carried out
            under this section shall be submitted by [the research
            director] the agricultural research director specified
            in subsection (d) and shall be approved by the
            Secretary.
              (3) Requirements related to plan of work.--Each plan
            of work required under paragraph (2) shall contain
            descriptions of the following:
                      (A) A summary of planned projects or programs
                    in the State using formula funds.
                      (B) A description of matching funds provided
                    by the State with respect to the previous
                    fiscal year.
              (4) Research protocols.--
                      (A) In general.--The Secretary shall develop
                    protocols to be used to evaluate the success of
                    multistate, multi-institutional, and
                    multidisciplinary research activities and joint
                    research and extension activities in addressing
                    critical agricultural issues identified in the
                    plans of work submitted under paragraph (2).
                      (B) Consultation.--The Secretary shall
                    develop the protocols in consultation with the
                    Advisory Board and land-grant colleges and
                    universities.
              (5) Treatment of plans of work for other purposes.--
            To the maximum extent practicable, the Secretary shall
            consider a plan of work submitted under paragraph (2)
            to satisfy other appropriate Federal reporting
            requirements.
      (d) Sums available for allotment to the eligible institutions
    under the terms of this section shall be paid to such
    institutions in equal quarterly payments beginning on or about
    the first day of October of each year upon vouchers approved by
    the Secretary. The President of each eligible institution shall
    appoint [a research director] an agricultural research director
    who shall be responsible for administration of the program
    authorized herein. Each eligible institution shall designate a
    treasurer [or other officer] who shall receive and account for
    all funds allotted to such institution under the provisions of
    this section and shall report, with the approval of the chief
    administrative officer, to the Secretary on or before the first
    day of December of each year a detailed statement of the amount
    received under the provisions of this section during the
    preceding fiscal year and its disbursement on schedules
    prescribed by the Secretary. If any portion of the allotted
    moneys received by any eligible institution shall by any action
    or contingency be diminished, lost, or misapplied, it shall be
    replaced by such institution and until so replaced no
    subsequent appropriation shall be allotted or paid to such
    institution. Funds made available to eligible institutions
    shall not be used for payment of negotiated overhead or
    indirect cost rates.
      (e) Bulletins, reports, periodicals, reprints or articles,
    and other publications necessary for the dissemination of
    results of the research and experiments funded under this
    section including lists of publications available for
    distribution by the eligible institutions, shall be transmitted
    in the mails of the United States. Such publications may be
    mailed from the principal place of business of each eligible
    institution or from an established subunit of such institution.
      (f) The Secretary shall be responsible for the proper
    administration of this section, and is authorized and directed
    to prescribe such rules and regulations as may be necessary to
    carry out its provisions. It shall be the duty of the Secretary
    to furnish such advice and assistance as will best promote the
    purposes of this section, including participation in
    coordination of research initiated under this section by the
    eligible institutions, from time to time to indicate such lines
    of inquiry as to the Secretary seem most important, and to
    encourage and assist in the establishment and maintenance of
    cooperation by and between the several eligible institutions,
    the State agricultural experiment stations, and between them
    and the Department of Agriculture.
      (g) On or before the first day of October in each year after
    the enactment of this title, the Secretary shall ascertain
    whether each eligible institution is entitled to receive its
    share of the annual appropriations under this section and the
    amount which thereupon each is entitled, respectively, to
    receive.
      (h) Nothing in this section shall be construed to impair or
    modify the legal relationship existing between any of the
    eligible institutions and the government of the States in which
    they are respectively located.

    SEC. 1446. SCHOLARSHIPS FOR STUDENTS AT 1890 INSTITUTIONS (COMMONLY
                        KNOWN AS THE DAVID A. SCOTT SCHOLARSHIP PROGRAM FOR
                        STUDENTS AT 1890 INSTITUTIONS).

      (a) In General.--
              (1) Scholarship grant program established.--The
            Secretary shall make grants to each college or
            university eligible to receive funds under the Act of
            August 30, 1890 (commonly known as the Second Morrill
            Act; 7 U.S.C. 322 et seq.), including Tuskegee
            University, for purposes of awarding scholarships to
            individuals who--
                      (A) have been accepted for admission at such
                    college or university;
                      (B) will be enrolled at such college or
                    university not later than one year after the
                    date of such acceptance; and
                      (C) intend to pursue a career in the food and
                    agricultural sciences, including a career in--
                              (i) agribusiness;
                              (ii) energy and renewable fuels; or
                              (iii) financial management.
              (2) Condition.--The Secretary may only award a grant
            under this subsection to a college or university
            described in paragraph (1) if the Secretary determines
            that such college or university has established a
            competitive scholarship awards process for the award of
            scholarships to individuals described in such
            paragraph.
              (3) Annual limitation.--Of the funds made available
            under subsection (b)(1), the Secretary may use not more
            than $10,000,000 to award grants under this subsection
            for the academic year beginning on July 1, 2020, and
            each of the 4 succeeding academic years.
              (4) Amount of grant.--Each grant made under this
            section shall be in an amount of not less than
            $500,000.
      (b) Funding.--
              (1) Mandatory funding.--
                      (A) Funding.--Of the funds of the Commodity
                    Credit Corporation, the Secretary shall make
                    available to carry out this section $40,000,000
                    not later than October 1, 2019, to remain
                    available until expended.
                      (B) Additional funding.--Not later than 30
                    days after the date of enactment of this
                    subparagraph, of the funds of the Commodity
                    Credit Corporation, the Secretary shall make
                    available to carry out this section
                    $10,000,000, to remain available until
                    expended.
                      (C) Further funding.--Of the funds of the
                    Commodity Credit Corporation, the Secretary
                    shall make available to carry out this section
                    $60,000,000 for fiscal year 2026, to remain
                    available until expended.
              (2) Discretionary funding.--In addition to amounts
            made available under paragraph (1), there is authorized
            to be appropriated to carry out this section
            $10,000,000 for each of fiscal years 2020 through
            [2023] 2031.
              (3) Administrative expenses.--Of the funds made
            available under paragraphs (1) and (2) to carry out
            this section for a fiscal year, not more than 4 percent
            may be used for expenses related to administering the
            program under this section.
      (c) Report.--Beginning on the date that is two years after
    the date on which the first grant is awarded under subsection
    (a), and every two years thereafter, 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 detailing--
              (1) the amount of funds provided to each eligible
            college or university under this section;
              (2) the number of scholarships awarded under each
            grant each fiscal year; and
              (3) the amount of each such scholarship.

    SEC. 1447. GRANTS TO UPGRADE AGRICULTURAL AND FOOD SCIENCES FACILITIES
                        AT 1890 LAND-GRANT COLLEGES, INCLUDING TUSKEGEE
                        UNIVERSITY.

      (a) Purpose.--It is hereby declared to be the intent of
    Congress to assist the institutions eligible to receive funds
    under the Act of August 30, 1890, including Tuskegee University
    (hereafter referred to in this section as ``eligible
    institutions'') in the acquisition and improvement of
    agricultural and food sciences facilities and equipment,
    including libraries, so that the eligible institutions may
    participate fully in the production of human capital.
      (b) Authorization of Appropriations.--There are authorized to
    be appropriated to the Secretary of Agriculture for the
    purposes of carrying out the provisions of this section,
    $25,000,000 for each of fiscal years 2002 through [2023] 2031,
    and such sums shall remain available until expended.
      (c) Use of Grant Funds.--Four percent of the sums
    appropriated pursuant to this section shall be available to the
    Secretary for administration of this grants program. The
    remaining funds shall be available for grants to eligible
    institutions for the purpose of assisting them in the purchase
    of equipment and land, the planning, construction, alteration,
    or renovation of buildings to strengthen their capacity in the
    production of human capital in the food and agricultural
    sciences and can be used at the discretion of the eligible
    institutions in the areas of research, extension, and resident
    instruction or any combination thereof.
      (d) Method of Awarding Grants.--Grants awarded pursuant to
    this section shall be made in such amounts and under such terms
    and conditions as the Secretary shall determine necessary for
    carrying out the purposes of this section.
      (e) Prohibition of Certain Uses.--Federal funds provided
    under this section may not be utilized for the payment of any
    overhead costs of the eligible institutions.
      (f) Regulations.--The Secretary may promulgate such rules and
    regulations as the Secretary may consider necessary to carry
    out the provisions of this section.

    [SEC. 1447A. GRANTS TO UPGRADE AGRICULTURE AND FOOD SCIENCES FACILITIES
                        AT THE DISTRICT OF COLUMBIA LAND-GRANT UNIVERSITY.

      [(a) Purpose.--It is the intent of Congress to assist the
    land-grant university in the District of Columbia established
    under section 208 of the District of Columbia Public
    Postsecondary Education Reorganization Act (Public Law 93-471;
    88 Stat. 1428) in efforts to acquire, alter, or repair
    facilities or relevant equipment necessary for conducting
    agricultural research.
      [(b) Authorization of Appropriations.--There are authorized
    to be appropriated to carry out this section $750,000 for each
    of fiscal years 2008 through 2012.]

    SEC. 1447B. GRANTS TO UPGRADE AGRICULTURE AND FOOD SCIENCES FACILITIES
                        AND EQUIPMENT AND SUPPORT TROPICAL AND SUBTROPICAL
                        AGRICULTURAL RESEARCH AT INSULAR AREA LAND-GRANT
                        COLLEGES AND UNIVERSITIES.

      (a) Purpose.--It is the intent of Congress to assist the
    land-grant colleges and universities in the insular areas in
    efforts to--
              (1) acquire, alter, or repair facilities or relevant
            equipment necessary for conducting agricultural
            research; and
              (2) support tropical and subtropical agricultural
            research, including pest and disease research.
      (b) Method of Awarding Grants.--Grants awarded pursuant to
    this section shall be made in such amounts and under such terms
    and conditions as the Secretary determines necessary to carry
    out the purposes of this section.
      (c) Regulations.--The Secretary may promulgate such rules and
    regulations as the Secretary considers to be necessary to carry
    out this section.
      (d) Authorization of Appropriations.--There is authorized to
    be appropriated to carry out this section $8,000,000 for each
    of fiscal years 2008 through [2023] 2031.

    SEC. 1449. MATCHING FUNDS REQUIREMENT FOR RESEARCH AND EXTENSION
                        ACTIVITIES AT ELIGIBLE INSTITUTIONS.

      (a) Definitions.--In this section:
              (1) Eligible institution.--The term ``eligible
            institution'' means a college eligible to receive funds
            under the Act of August 30, 1890 (7 U.S.C. 321 et seq.)
            (commonly known as the ``Second Morrill Act''),
            including Tuskegee University.
              (2) Formula funds.--The term ``formula funds'' means
            the formula allocation funds distributed to eligible
            institutions under sections 1444 and 1445.
      (b) Determination of Non-Federal Sources of Funds.--[Not
    later than September 30, 1999] Beginning on September 30, 2026,
    and not later than September 30 of each fiscal year thereafter,
    each eligible institution shall submit to the Secretary a
    report describing for [fiscal year 1999] the fiscal year ending
    on that September 30--
              (1) the sources of non-Federal funds made available
            by the State to the eligible institution for
            agricultural research, extension, and education to meet
            the requirements of this section; and
              (2) the amount of such funds generally available from
            each source.
      [(c) Matching Formula.--Notwithstanding any other provision
    of this subtitle, the State shall provide equal matching funds
    from non-Federal sources.]
      (c) State Matching Funds Requirement.--Notwithstanding any
    other provision of this subtitle, for each fiscal year, a State
    shall provide to each eligible institution located in the State
    matching funds from non-Federal sources in an amount equal to
    the amounts provided to the eligible institution under sections
    1444 and 1445 for the purposes described in subsection (b)(1).
      (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.
      (e) Use of Matching Funds.--Under terms and conditions
    established by the Secretary, matching funds provided as
    required by subsection (c) may be used by an eligible
    institution for agricultural research, extension, and education
    activities.
      (f) Redistribution of Funds.--
              (1) Redistribution required.--Federal funds that are
            not matched by a State in accordance with subsection
            (c) for a fiscal year shall be redistributed by the
            Secretary to eligible institutions whose States have
            satisfied the matching funds requirement for that
            fiscal year.
              (2) Administration.--Any redistribution of funds
            under this subsection shall be subject to the
            applicable matching requirement specified in subsection
            (c) and shall be made in a manner consistent with
            sections 1444 and 1445, as determined by the Secretary.

    SEC. 1450. NEW BEGINNING FOR TRIBAL STUDENTS.

      (a) Definitions.--In this section:
              (1) Indian tribe.--The term ``Indian tribe'' has the
            meaning given such term in section 4 of the Indian
            Self-Determination and Education Assistance Act (25
            U.S.C. 5304)).
              (2) Land-grant college or university.--The term
            ``land-grant college or university'' includes a 1994
            Institution (as defined in section 532 of the Equity in
            Educational Land-Grant Status Act of 1994 (Public Law
            103-382; 7 U.S.C. 301 note)).
              (3) Tribal student.--The term ``Tribal student''
            means a student at a land-grant college or university
            that is a member of an Indian tribe.
      (b) New Beginning Initiative.--
              (1) Authorization.--The Secretary may make
            competitive grants to land-grant colleges and
            universities to provide identifiable support
            specifically targeted for Tribal students.
              (2) Application.--A land-grant college or university
            that desires to receive a grant under this section
            shall submit an application to the Secretary at such
            time, in such manner, and accompanied by such
            information as the Secretary may require.
              (3) Use of funds.--A land-grant college or university
            that receives a grant under this section shall use the
            grant funds to support Tribal students through--
                      (A) recruiting;
                      (B) tuition and related fees;
                      (C) experiential learning; and
                      (D) student services, including--
                              (i) tutoring;
                              (ii) counseling;
                              (iii) academic advising; and
                              (iv) other student services that
                            would increase the retention and
                            graduation rate of Tribal students
                            enrolled at the land-grant college or
                            university, as determined by the
                            Secretary.
              (4) Matching funds.--A [land-grant college or
            university] land-grant college or university (except
            for a 1994 Institution (as defined in section 532 of
            the Equity in Educational Land-Grant Status Act of 1994
            (Public Law 103-382; 7 U.S.C. 301 note))) that receives
            a grant under this section shall provide matching funds
            toward the cost of carrying out the activities
            described in this section in an amount equal to not
            less than 100 percent of the grant award.
              [(5) Maximum amount per state.--No State shall
            receive, through grants made under this section to
            land-grant colleges and universities located in the
            State, more than $500,000 per year.]
      (c) Report.--Not later than 3 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 and the
    Committee on Indian Affairs of the Senate a report that
    includes an itemized list of grant funds distributed under this
    section, including the specific form of assistance provided
    under subsection (b)(3), and the number of Tribal students
    assisted and the graduation rate of Tribal students at land-
    grant colleges and universities receiving grants under this
    section.
      (d) Authorization of Appropriation.--There is authorized to
    be appropriated to carry out this section $5,000,000 for each
    of fiscal years 2019 through [2023] 2031.

             Subtitle H--Programs for Hispanic-Serving Institutions

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

      (a) Grant Authority.--The Secretary may make competitive
    grants to Hispanic-serving institutions for the purpose of
    promoting and strengthening the ability of Hispanic-serving
    institutions to carry out education, applied research, and
    related community development programs.
      (b) Use of Grant Funds.--Grants made under this section shall
    be used--
              (1) to support the activities of Hispanic-serving
            institutions to enhance educational equity for
            underrepresented students;
              (2) to strengthen institutional educational
            capacities, including libraries, curriculum, faculty,
            scientific instrumentation, instruction delivery
            systems, and student recruitment and retention, in
            order to respond to identified State, regional,
            national, or international educational needs in the
            food and agricultural sciences;
              (3) to attract and support undergraduate and graduate
            students from underrepresented groups in order to
            prepare them for careers related to the food,
            agricultural, and natural resource systems of the
            United States, beginning with the mentoring of students
            at the high school level and continuing with the
            provision of financial support for students through
            their attainment of a doctoral degree; and
              (4) to facilitate cooperative initiatives between 2
            or more Hispanic-serving institutions, or between
            Hispanic-serving institutions and units of State
            government or the private sector, to maximize the
            development and use of resources, such as faculty,
            facilities, and equipment, to improve food and
            agricultural sciences teaching programs.
      (c) Authorization of Appropriations.--There are authorized to
    be appropriated to make grants under this section $40,000,000
    for each of fiscal years 1997 through [2023] 2031.

               *       *       *       *       *       *       *

          Subtitle I--International Research, Extension, and Teaching

    SEC. 1458. INTERNATIONAL AGRICULTURAL RESEARCH, EXTENSION, AND
                        TEACHING.

      (a) Authority of the Secretary.--To carry out the policy of
    this subtitle, the Secretary (in consultation with the Agency
    for International Development and subject to such coordination
    with other Federal officials, Departments, and agencies as the
    President may direct) may--
              (1) expand the operational coordination of the
            Department of Agriculture with institutions and other
            persons throughout the world performing agricultural
            and related research, extension, and teaching
            activities by--
                      (A) exchanging research materials and results
                    with the institutions or persons;
                      (B) conducting with the institutions or
                    persons joint or coordinated research,
                    extension, and teaching activities that address
                    problems of significance to food and
                    agriculture in the United States; and
                      (C) giving priority to those institutions
                    with existing memoranda of understanding,
                    agreements, or other formal ties to United
                    States institutions, or Federal or State
                    agencies;
              (2) enter into cooperative arrangements with
            Departments and Ministries of Agriculture in other
            nations to conduct research, extension, and teaching
            activities in support of the development of a viable
            and sustainable global agricultural system, including
            efforts to establish a global system for plant genetic
            resources conservation;
              (3) enter into agreements with land-grant colleges
            and universities, Hispanic-serving agricultural
            colleges and universities, the Agency for International
            Development, and international organizations (such as
            the United Nations, the World Bank, regional
            development banks, international agricultural research
            centers), or other organizations, institutions, or
            individuals with comparable goals, to promote and
            support--
                      (A) the development of a viable and
                    sustainable global agricultural system;
                      (B) antihunger and improved international
                    nutrition efforts; and
                      (C) increased quantity, quality, and
                    availability of food;
              (4) further develop within the Department highly
            qualified and experienced science and education experts
            who specialize in international programs, to be
            available to carry out the activities described in this
            section;
              (5) work with transitional and more advanced
            countries in food, agricultural, and related research,
            development, teaching, and extension (including
            providing technical assistance, training, and advice to
            persons from the countries engaged in the activities
            and the stationing of scientists and other specialists
            at national and international institutions in the
            countries);
              (6) expand collaboration and coordination with the
            Agency for International Development regarding food and
            agricultural research, extension, and teaching programs
            in developing countries;
              (7) assist colleges and universities in strengthening
            their capabilities for food, agricultural, and related
            research, extension, and teaching programs relevant to
            agricultural development activities in other countries
            through--
                      (A) the provision of support to State
                    universities, land-grant colleges and
                    universities, and Hispanic-serving agricultural
                    colleges and universities to do collaborative
                    research with other countries on issues
                    relevant to United States agricultural
                    competitiveness;
                      (B) the provision of support for cooperative
                    extension education in global agriculture and
                    to promote the application of new technology
                    developed in foreign countries to United States
                    agriculture; and
                      (C) the provision of support for the
                    internationalization of resident instruction
                    programs of the universities and colleges
                    described in subparagraph (A);
              (8) continue, in cooperation with the Secretary of
            State, a program, coordinated through the International
            Arid Land Consortium, to enhance collaboration and
            cooperation between institutions possessing research,
            extension, and teaching capabilities applied to the
            development, management, and reclamation of arid lands;
              (9) make competitive grants for collaborative
            projects that--
                      (A) involve Federal scientists or scientists
                    from land-grant colleges and universities,
                    Hispanic-serving agricultural colleges and
                    universities, or other colleges and
                    universities with scientists at international
                    agricultural research centers in other nations,
                    including the international agricultural
                    research centers of the Consultative Group on
                    International Agriculture Research;
                      (B) focus on developing and using new
                    technologies and programs for--
                              (i) increasing the production of food
                            and fiber, while safeguarding the
                            environment worldwide and enhancing the
                            global competitiveness of United States
                            agriculture; or
                              (ii) training scientists;
                      (C) are mutually beneficial to the United
                    States and other countries; and
                      (D) encourage private sector involvement and
                    the leveraging of private sector funds;
              (10) establish a program, to be coordinated by the
            National Institute of Food and Agriculture and the
            Foreign Agricultural Service, to place interns from
            United States colleges and universities at Foreign
            Agricultural Service field offices overseas; and
              (11) establish a program for the purpose of providing
            fellowships to United States or foreign students to
            study at foreign agricultural colleges and universities
            working under agreements provided for under paragraph
            (3).
      (b) Enhancing Linkages.--The Secretary shall draw upon and
    enhance the resources of the land-grant colleges and
    universities, and other colleges and universities, for
    developing linkages among these institutions, the Federal
    Government, international research centers, counterpart
    research, extension, and teaching agencies and institutions in
    both the developed and less-developed countries to serve the
    purposes of agriculture and the economy of the United States
    and to make a substantial contribution to the cause of improved
    food and agricultural progress throughout the world.
      (c) Provision of Specialized or Technical Services.--The
    Secretary may provide specialized or technical services, on an
    advance of funds or a reimbursable basis, to United States
    colleges and universities and other nongovernmental
    organizations carrying out international food, agricultural,
    and related research, extension, and teaching development
    projects and activities. All funds received in payment for
    furnishing such specialized or technical services shall be
    deposited to the credit of the appropriation from which the
    cost of providing such services has been paid or is to be
    charged.
      (d) Reports.--The Secretary shall provide biennial reports to
    the Committee on Agriculture of the House of Representatives
    and the Committee on Agriculture, Nutrition, and Forestry of
    the Senate on efforts of the Federal Government--
              (1) to coordinate international agricultural research
            within the Federal Government; and
              (2) to more effectively link the activities of
            domestic and international agricultural researchers,
            particularly researchers of the Agricultural Research
            Service.
      (e) Certain Binational Projects.--
              (1) Full payment of funds.--Notwithstanding any other
            provision of law, the full amount of any funds
            appropriated or otherwise made available to carry out
            cooperative projects under the arrangement [entered
            into], as entered into in 1977, between the Secretary
            and the Government of Israel to support the United
            States-Israel Binational Agricultural Research and
            Development Fund (referred to in this subsection asthe
            ``BARD Fund'') shall be paid directly to the Fund.
              (2) Activities.--Activities under the BARD Fund to
            promote and support agricultural research and
            development that are of mutual benefit to the [United
            States and Israel] United States, Israel, or other
            signatories of the Abraham Accords Declaration shall--
                      (A) accelerate the demonstration,
                    development, and application of agricultural
                    solutions resulting from or relating to BARD
                    Fund programs, including BARD Fund-sponsored
                    research and innovations in drip irrigation,
                    pesticides, aquaculture, livestock, poultry,
                    disease control, and farm equipment; and
                      (B) encourage research carried out by
                    governmental, nongovernmental, and private
                    entities, including through collaboration with
                    colleges and universities, research
                    institutions, and the private sector.
              (3) BARD fund accelerator.--The BARD Fund shall
            establish an accelerator program that supports mid-
            stage research, as determined by the technology
            readiness level, in priority areas established by the
            BARD Fund that--
                      (A) fast-tracks cooperative research between
                    scientists participating in activities
                    described in paragraph (2);
                      (B) accelerates the successful development of
                    agricultural research through resources and
                    services developed or orchestrated by the BARD
                    Fund;
                      (C) provides management guidance, technical
                    assistance, and consulting to scientists
                    participating in activities described in
                    paragraph (2); or
                      (D) advances cooperative agricultural
                    research projects of mutual interest to the
                    United States, Israel, or other signatories of
                    the Abraham Accords Declaration.

    SEC. 1458A. [PARTNERSHIPS TO BUILD CAPACITY IN INTERNATIONAL
                        AGRICULTURAL RESEARCH, EXTENSION, AND TEACHING.]
                        GRANTS AND PARTNERSHIPS FOR INTERNATIONAL
                        AGRICULTURAL RESEARCH, EXTENSION, AND EDUCATION.

      [(a) Definitions.--In this section:
              [(1) 1862 institution; 1890 institution; 1994
            institution.--The terms ``1862 Institution'', ``1890
            Institution'', and ``1994 Institution'' have the
            meanings given the terms in section 2 of the
            Agricultural Research, Extension, and Education Reform
            Act of 1998 (7 U.S.C. 7601).
              [(2) Covered institution.--The term ``covered
            Institution'' means--
                      [(A) an 1862 Institution;
                      [(B) an 1890 Institution;
                      [(C) a 1994 Institution;
                      [(D) an NLGCA Institution;
                      [(E) a Hispanic-serving agricultural college
                    or university; and
                      [(F) a cooperating forestry school.
              [(3) Developing country.--The term ``developing
            country'' means a country, as determined by the
            Secretary using a gross national income per capita test
            selected by the Secretary.
              [(4) International partner institution.--The term
            ``international partner institution'' means an
            agricultural higher education institution in a
            developing country that is performing, or desiring to
            perform, activities similar to agricultural research,
            extension, and teaching activities carried out through
            covered Institutions in the United States.
      [(b) Authority of the Secretary.--The Secretary may promote
    cooperation and coordination between covered Institutions and
    international partner institutions through--
              [(1) improving extension by--
                      [(A) encouraging the exchange of research
                    materials and results between covered
                    Institutions and international partner
                    institutions;
                      [(B) facilitating the broad dissemination of
                    agricultural research through extension; and
                      [(C) assisting with efforts to plan and
                    initiate extension services in developing
                    countries;
              [(2) improving agricultural research by--
                      [(A) in partnership with international
                    partner institutions, encouraging research that
                    addresses problems affecting food production
                    and security, human nutrition, agriculture,
                    forestry, livestock, and fisheries, including
                    local challenges; and
                      [(B) supporting and strengthening national
                    agricultural research systems in developing
                    countries;
              [(3) supporting the participation of covered
            Institutions in programs of international
            organizations, such as the United Nations, the World
            Bank, regional development banks, and international
            agricultural research centers;
              [(4) improving agricultural teaching and education
            by--
                      [(A) in partnership with international
                    partner institutions, supporting education and
                    teaching relating to food and agricultural
                    sciences, including technical assistance,
                    degree training, research collaborations,
                    classroom instruction, workforce training, and
                    education programs; and
                      [(B) assisting with efforts to increase
                    student capacity, including to encourage
                    equitable access for women and other
                    underserved populations, at international
                    partner institutions by promoting partnerships
                    with, and improving the capacity of, covered
                    Institutions;
              [(5) assisting covered Institutions in strengthening
            their capacity for food, agricultural, and related
            research, extension, and teaching programs relevant to
            agricultural development activities in developing
            countries to promote the application of new technology
            to improve education delivery;
              [(6) providing support for the internationalization
            of resident instruction programs of covered
            Institutions;
              [(7) establishing a program, to be coordinated by the
            Director of the National Institute of Food and
            Agriculture and the Administrator of the Foreign
            Agricultural Service, to place interns from covered
            Institutions in, or in service to benefit, developing
            countries; and
              [(8) establishing a program to provide fellowships to
            students at covered Institutions to study at foreign
            agricultural colleges and universities.]
      (a) Definitions.--In this section:
              (1) Developing country.--The term ``developing
            country'' means a country that meets such criteria as
            determined by the Secretary, established using a gross
            national income per capita test selected by the
            Secretary.
              (2) Eligible institution.--The term ``eligible
            institution'' means--
                      (A) a land-grant colleges or university;
                      (B) a non-land-grant college of agriculture;
                      (C) a Hispanic-serving agricultural college
                    or university; and
                      (D) a cooperating forestry school.
              (3) International partner institution.--The term
            ``international partner institution'' means a higher
            education institution in a developing country that is
            performing, or desiring to perform, activities similar
            to agricultural research, extension, and education
            activities carried out through eligible institutions in
            the United States.
      (b) Grants and Partnerships.--
              (1) Grants.--The Secretary may make competitive
            grants to eligible institutions in order to strengthen
            United States economic competitiveness and to promote
            international market development through--
                      (A) enhancing the international content of
                    the curricula in colleges and universities so
                    as to ensure that United States students
                    acquire an understanding of the international
                    dimensions and trade implications of their
                    studies;
                      (B) ensuring that United States scientists,
                    extension agents, and educators involved in
                    agricultural research and development
                    activities outside of the United States have
                    the opportunity to convey the implications of
                    their activities and findings to their peers
                    and students in the United States and to the
                    users of agricultural research, extension, and
                    teaching;
                      (C) enhancing the capabilities of colleges
                    and universities to do collaborative research
                    with other countries, in cooperation with other
                    Federal agencies, on issues relevant to United
                    States agricultural competitiveness;
                      (D) enhancing the capabilities of colleges
                    and universities to provide cooperative
                    extension education to promote the application
                    of new technology developed in foreign
                    countries to United States agriculture; and
                      (E) enhancing the capability of United States
                    colleges and universities, in cooperation with
                    other Federal agencies, to provide leadership
                    and educational programs that will assist
                    United States natural resources and food
                    production, processing, and distribution
                    businesses and industries to compete
                    internationally, including through the use of
                    product market identification, international
                    policies limiting or enhancing market
                    production, the development of new or
                    enhancement of existing markets, and production
                    efficiencies.
              (2) Partnerships.--The Secretary may promote
            cooperation and coordination between eligible
            institutions and international partner institutions
            through--
                      (A) improving extension by--
                              (i) encouraging the exchange of
                            research materials and results between
                            eligible institutions and international
                            partner institutions;
                              (ii) facilitating the broad
                            dissemination of agricultural research
                            through extension;
                              (iii) assisting with efforts to plan
                            and initiate extension services in
                            developing countries; and
                              (iv) developing self-sustaining
                            regional agricultural markets and
                            promoting the application of new
                            agricultural technologies and
                            techniques;
                      (B) improving agricultural research by--
                              (i) in partnership with international
                            partner institutions, encouraging
                            research that addresses problems
                            affecting food production and security,
                            human nutrition, agriculture, forestry,
                            livestock, and fisheries, including
                            local challenges; and
                              (ii) supporting and strengthening
                            national agricultural research systems
                            in developing countries;
                      (C) improving agricultural teaching and
                    education by--
                              (i) in partnership with international
                            partner institutions, supporting
                            education and teaching relating to food
                            and agricultural sciences, including
                            technical assistance, degree training,
                            research collaborations, classroom
                            instruction, workforce training, and
                            education programs; and
                              (ii) assisting with efforts to
                            increase student capacity, including to
                            encourage equitable access for women
                            and other underserved populations, at
                            international partner institutions by
                            promoting partnerships with, and
                            improving the capacity of, eligible
                            institutions;
                      (D) assisting eligible institutions in
                    strengthening their capacity for food,
                    agricultural, and related research, extension,
                    and teaching programs relevant to agricultural
                    development activities in developing countries
                    to promote the application of new technology to
                    improve education delivery;
                      (E) providing support for the
                    internationalization of resident instruction
                    programs of eligible institutions;
                      (F) establishing a program, to be coordinated
                    by the Director of the National Institute of
                    Food and Agriculture and the Administrator of
                    the Foreign Agricultural Service, to place
                    interns from eligible institutions in, or in
                    service to benefit, developing countries; and
                      (G) establishing a program to provide
                    fellowships to students at eligible
                    institutions to study at foreign agricultural
                    colleges and universities.
      (c) Enhancing Linkages.--The Secretary shall enhance the
    linkages among [covered Institutions] eligible institutions,
    the Federal Government, international research centers,
    counterpart research, extension, and teaching agencies and
    institutions in developed countries and developing countries--
              (1) to carry out the activities described in
            subsection (b); and
              (2) to make a substantial contribution to the cause
            of improved food and agricultural progress throughout
            the world.
      (d) Authorization of Appropriations.--There is authorized to
    be appropriated to carry out this section $10,000,000 for each
    of fiscal years 2019 through [2023] 2031.

               *       *       *       *       *       *       *

    [SEC. 1459A. COMPETITIVE GRANTS FOR INTERNATIONAL AGRICULTURAL SCIENCE
                        AND EDUCATION PROGRAMS.

      [(a) Competitive Grants Authorized.--The Secretary may make
    competitive grants to colleges and universities in order to
    strengthen United States economic competitiveness and to
    promote international market development.
      [(b) Purpose of Grants.--Grants under this section shall be
    directed to agricultural research, extension, and teaching
    activities that will--
              [(1) enhance the international content of the
            curricula in colleges and universities so as to ensure
            that United States students acquire an understanding of
            the international dimensions and trade implications of
            their studies;
              [(2) ensure that United States scientists, extension
            agents, and educators involved in agricultural research
            and development activities outside of the United States
            have the opportunity to convey the implications of
            their activities and findings to their peers and
            students in the United States and to the users of
            agricultural research, extension, and teaching;
              [(3) enhance the capabilities of colleges and
            universities to do collaborative research with other
            countries, in cooperation with other Federal agencies,
            on issues relevant to United States agricultural
            competitiveness;
              [(4) enhance the capabilities of colleges and
            universities to provide cooperative extension education
            to promote the application of new technology developed
            in foreign countries to United States agriculture; and
              [(5) enhance the capability of United States colleges
            and universities, in cooperation with other Federal
            agencies, to provide leadership and educational
            programs that will assist United States natural
            resources and food production, processing, and
            distribution businesses and industries to compete
            internationally, including product market
            identification, international policies limiting or
            enhancing market production, development of new or
            enhancement of existing markets, and production
            efficiencies.
      [(c) Authorization of Appropriations.--There are authorized
    to be appropriated to carry out this section--
              [(1) such sums as are necessary for each of fiscal
            years 1999 through 2013; and
              [(2) $5,000,000 for each of fiscal years 2014 through
            2023.]

               *       *       *       *       *       *       *

               Subtitle K--Funding and Miscellaneous Provisions

               *       *       *       *       *       *       *

    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.
      (b) Maximum Amount.--The amount of a grant made to an
    eligible institution under this section may not exceed
    $500,000.
      (c) Prohibition on Charge or 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.
      (d) Eligible Institutions Defined.--In this section, the term
    ``eligible institution'' means--
              (1) a college or university; or
              (2) a State cooperative institution.
      (e) Authorization of Appropriations.--There is authorized to
    be appropriated to carry out this section $5,000,000 for each
    of fiscal years 2019 through [2023] 2031.

         authorization for appropriations for existing and certain new
                         agricultural research programs

      Sec. 1463. (a) Notwithstanding any authorization for
    appropriations for agricultural research in any Act enacted
    prior to the date of enactment of this title, there are hereby
    authorized to be appropriated for the purposes of carrying out
    the provisions of this title, except sections 1417, 1420, and
    the competitive grants program provided for in section 1414,
    and except that the authorization for moneys provided under the
    Act of March 2, 1887 (24 Stat. 440-442, as amended; 7 U.S.C.
    361a-361i), is excluded and is provided for in subsection (b)
    of this section, such sums as may be necessary for each of
    fiscal years 1991 through [2023] 2031.
      (b) Notwithstanding any authorization for appropriations for
    agricultural research at State agricultural experiment stations
    in any Act enacted prior to the date of enactment of this
    title, there are hereby authorized to be appropriated for the
    purpose of conducting agricultural research at State
    agricultural experiment stations pursuant to the Act of March
    2, 1887 (24 Stat. 440-442, as amended; 7 U.S.C. 361a-361i),
    such sums as may be necessary for each of fiscal years 1991
    through [2023] 2031.
      (c) Notwithstanding any other provision of law effective
    beginning October 1, 1983, not less than 25 per centum of the
    total funds appropriated to the Secretary in any fiscal year
    for the conduct of the cooperative research program provided
    for under the Act of March 2, 1887, commonly known as the Hatch
    Act (7 U.S.C. 361a et seq.); the cooperative forestry research
    program provided for under the Act of October 10, 1962,
    commonly known as the McIntire-Stennis Act (16 U.S.C. 582a et
    seq.); the special and competitive grants programs provided for
    in sections 2(b) and 2(c) of the Act of August 4, 1965 (7
    U.S.C. 450i); the animal health research program provided for
    under sections 1433(a) and 1434 of this title; the native latex
    research program provided for in the Native Latex
    Commercialization and Economic Development Act of 1978 (7
    U.S.C. 178 et seq.); and the research provided for under
    various statutes for which funds are appropriated under the
    Agricultural Research heading or a successor heading, shall be
    appropriated for research at State agricultural experiment
    stations pursuant to the provision of the Act of March 2, 1887.

            authorization for appropriations for extension education

      Sec. 1464. Notwithstanding any authorization for
    appropriations for the Cooperative Extension Service in any Act
    enacted prior to the date of enactment of this title, there are
    hereby authorized to be appropriated for the purposes of
    carrying out the extension programs of the Department of
    Agriculture such sums as may be necessary for each of fiscal
    years 1991 through [2023] 2031.

               *       *       *       *       *       *       *

                       supplemental and alternative crops

      Sec. 1473D. (a) Notwithstanding any other provision of law,
    during the period beginning October 1, 1986, and ending
    September 30, [2023] 2031, the Secretary shall develop and
    implement a research project for the development of
    supplemental and alternative crops (including canola), using
    such funds as are appropriated to the Secretary each fiscal
    year under this title.
      (b) The development of supplemental and alternative crops for
    agronomic rotational purposes and as a habitat for honey bees
    and other pollinators is of critical importance to producers of
    agricultural commodities.
      (c)(1) The Secretary shall make competitive grants to further
    the purposes of this section in the implementation of a
    comprehensive and integrated program.
      (2) The program developed and implemented by the Secretary
    shall include--
              (A) an examination of the adaptation of supplemental
            and alternative crops;
              (B) the establishment and extension of various
            methods of planting, cultivating, harvesting, and
            processing supplemental and alternative crops;
              (C) the transfer of such applied research to on-farm
            practice as soon as practicable;
              (D) the establishment through grants, cooperative
            agreements, or other means of such processing, storage,
            and transportation facilities for supplemental and
            alternative crops as the Secretary determines will
            facilitate the achievement of a successful program; and
              (E) the application of such other resources and
            expertise as the Secretary considers appropriate to
            support the program.
      (3) The program may include, but shall not be limited to,
    agreements, grants, and other arrangements--
              (A) to conduct comprehensive resource and
            infrastructure assessments;
              (B) to develop and introduce supplemental and
            alternative income-producing crops;
              (C) to develop and expand domestic and export markets
            for such crops;
              (D) to provide technical assistance to farm owners
            and operators, marketing cooperative, and others;
              (E) to conduct fundamental and applied research
            related to the development of new commercial products
            derived from natural plant material (including hemp (as
            defined in section 297A of the Agricultural Marketing
            Act of 1946)) for industrial, medical, and agricultural
            applications; [and]
              (F) to examine potential benefits and opportunities
            for supplemental and alternative crops (including
            winter-planted rapeseed and winter-planted canola
            crops); and
              [(F)] (G) to participate with colleges and
            universities, other Federal agencies, and private
            sector entities in conducting research described in
            subparagraph (E).
      (d) The Secretary shall use the expertise and resources of
    the Agricultural Research Service, the National Institute of
    Food and Agriculture, and the land-grant colleges and
    universities for the purpose of carrying out this section.
      (e) There are authorized to be appropriated to carry out this
    section--
              (1) such sums as are necessary for fiscal year 2013;
              (2) $1,000,000 for each of fiscal years 2014 through
            2018; and
              (3) $2,000,000 for each of fiscal years 2019 through
            [2023] 2031.

    SEC. 1473E. [NEW ERA RURAL TECHNOLOGY PROGRAM.]  GRANTS FOR COMMUNITY
                        COLLEGE AGRICULTURE AND NATURAL RESOURCES PROGRAMS.

      [(a) Definition of Community College.--In this section, the
    term ``community college'' means an institution of higher
    education (as defined in section 101 of the Higher Education
    Act of 1965 (20 U.S.C. 1001))--
              [(1) that admits as regular students individuals
            who--
                      [(A) are beyond the age of compulsory school
                    attendance in the State in which the
                    institution is located; and
                      [(B) have the ability to benefit from the
                    training offered by the institution;
              [(2) that does not provide an educational program for
            which the institution awards a bachelor's degree or an
            equivalent degree; and
              [(3) that--
                      [(A) provides an educational program of not
                    less than 2 years that is acceptable for full
                    credit toward such a degree; or
                      [(B) offers a 2-year program in engineering,
                    technology, mathematics, or the physical,
                    chemical, or biological sciences, designed to
                    prepare a student to work as a technician or at
                    the semiprofessional level in engineering,
                    scientific, or other technological fields
                    requiring the understanding and application of
                    basic engineering, scientific, or mathematical
                    principles of knowledge.
      [(b) Functions.--
              [(1) Establishment.--
                      [(A) In general.--The Secretary shall
                    establish a program to be known as the ``New
                    Era Rural Technology Program'', to make grants
                    available for technology development, applied
                    research, and training to aid in the
                    development of an agriculture-based renewable
                    energy workforce.
                      [(B) Support.--The initiative under this
                    section shall support the fields of--
                              [(i) bioenergy;
                              [(ii) pulp and paper manufacturing;
                              [(iii) agriculture-based renewable
                            energy resources; and
                              [(iv) precision agriculture.
              [(2) Requirements for funding.--To receive funding
            under this section, an entity shall--
                      [(A) be a community college or advanced
                    technological center, located in a rural area
                    and in existence on the date of the enactment
                    of this section, that participates in
                    agricultural or bioenergy research and applied
                    research;
                      [(B) have a proven record of development and
                    implementation of programs to meet the needs of
                    students, educators, and business and industry
                    to supply the agriculture-based, renewable
                    energy or pulp and paper manufacturing fields
                    with certified technicians, as determined by
                    the Secretary; and
                      [(C) have the ability to leverage existing
                    partnerships and occupational outreach and
                    training programs for secondary schools, 4-year
                    institutions, and relevant nonprofit
                    organizations.
      [(c) Grant Priority.--In providing grants under this section,
    the Secretary shall give preference to eligible entities
    working in partnership--
              [(1) to improve information-sharing capacity; and
              [(2) to maximize the ability to meet the requirements
            of this section.]
      (a) Definitions.--In this section:
              (1) Eligible entity.--The term ``eligible entity''
            means--
                      (A) a junior or community college (as defined
                    in section 312 of the Higher Education Act of
                    1965 (20 U.S.C. 1058)) supporting agriculture
                    advancement;
                      (B) a consortium or alliance of 2-year public
                    colleges supporting agriculture advancement; or
                      (C) an area career and technical education
                    school (as defined in section 3 of the Carl D.
                    Perkins Career and Technical Education Act of
                    2006 (20 U.S.C. 2302)) that offers a program of
                    study in agriculture.
              (2) Work-based learning.--The term ``work-based
            learning'' has the meaning given such term in section 3
            of the Carl D. Perkins Career and Technical Education
            Act of 2006 (20 U.S.C. 2302).
      (b) Competitive Grants.--The Secretary shall make competitive
    grants to eligible entities to conduct workforce training,
    education, research, and outreach activities relating to food
    and agricultural sciences.
      (c) Priority.--In making grants under subsection (b), the
    Secretary shall give priority to an eligible entity
    coordinating with a local agriculture industry operator or
    conservation district to provide work-based learning,
    experiential training, and other opportunities for students.
      (d) Use of Funds.--An eligible entity that receives a grant
    under subsection (b) may use the funds made available through
    the grant--
              (1) to offer educational programming on agricultural
            industry jobs, including farm business management-
            related subjects, such as accounting, paralegal
            studies, finance, and soil, water, and related resource
            conservation;
              (2) to develop apprenticeships and other work-based
            learning opportunities; and
              (3) other services that would increase workforce
            training, education, research, and outreach activities
            relating to food and agricultural sciences, as
            determined by the Secretary.
      [(d)] (e) Authorization of Appropriations.--There are
    authorized to be appropriated to carry out this section such
    sums as are necessary for each of fiscal years 2019 through
    [2023] 2031.

    SEC. 1473F. CAPACITY BUILDING GRANTS FOR NLGCA INSTITUTIONS.

      (a) Grant Program.--
              (1) In general.--The Secretary shall make competitive
            grants to NLGCA Institutions to assist the NLGCA
            Institutions in maintaining and expanding the capacity
            of the NLGCA Institutions to conduct education,
            research, and outreach activities relating to--
                      (A) agriculture;
                      (B) renewable resources; and
                      (C) other similar disciplines.
              (2) Use of funds.--An NLGCA Institution that receives
            a grant under paragraph (1) may use the funds made
            available through the grant to maintain and expand the
            capacity of the NLGCA Institution--
                      (A) to successfully compete for funds from
                    Federal grants and other sources to carry out
                    educational, research, and outreach activities
                    that address priority concerns of national,
                    regional, State, and local interest;
                      (B) to disseminate information relating to
                    priority concerns to--
                              (i) interested members of the
                            agriculture, renewable resources, and
                            other relevant communities;
                              (ii) the public; and
                              (iii) any other interested entity;
                      (C) to encourage members of the agriculture,
                    renewable resources, and other relevant
                    communities to participate in priority
                    education, research, and outreach activities by
                    providing matching funding to leverage grant
                    funds; and
                      (D) through--
                              (i) the purchase or other acquisition
                            of equipment and other infrastructure
                            (not including alteration, repair,
                            renovation, or construction of
                            buildings);
                              (ii) the professional growth and
                            development of the faculty of the NLGCA
                            Institution; and
                              (iii) the development of graduate
                            assistantships.
      (b) Authorization of Appropriations.--There are authorized to
    be appropriated to carry out this section such sums as are
    necessary for each of fiscal years 2008 through [2023] 2031.

               *       *       *       *       *       *       *

    SEC. 1473H. AGRICULTURE ADVANCED RESEARCH AND DEVELOPMENT AUTHORITY
                        PILOT.

      (a) Definitions.--In this section:
              (1) Advanced research and development.--The term
            ``advanced research and development'' means research
            and development activities used to address research
            challenges in agriculture and food through--
                      (A) targeted acceleration of novel, early
                    stage innovative agricultural research with
                    promising technology applications and products;
                    or
                      (B) development of qualified products and
                    projects, agricultural technologies, or
                    innovative research tools, which may include--
                              (i) prototype testing, preclinical
                            development, or field experimental use;
                              (ii) assessing and assisting with
                            product approval, clearance, or need
                            for a license under an applicable law,
                            as determined by the Director; or
                              (iii) manufacturing and
                            commercialization of a product.
              (2) Agricultural technology.--The term ``agricultural
            technology'' means machinery and other equipment,
            including precision agriculture, engineered for an
            applicable and novel use in agriculture, natural
            resources, and food [relating to the research and
            development of qualified products and projects].
              (3) Director.--The term ``Director'' means the
            Director of the Agriculture Advanced Research and
            Development Authority established under subsection
            (b)(1).
              (4) Other transaction.--The term ``other
            transaction'' means a transaction other than a
            procurement contract, grant, or cooperative agreement,
            including a transaction described in subsection
            (b)(6)(A).
              (5)  [Person] Eligible entity.--The term ``[person]
            eligible entity'' means--
                      (A) an individual;
                      (B) a partnership;
                      (C) a corporation;
                      (D) an association;
                      [(E) an entity;]
                      [(F)] (E) a public or private corporation;
                      [(G)] (F) a Federal, State, or local
                    government agency or department; and
                      [(H)] (G) an institution of higher education,
                    including a land-grant college or university
                    and a non-land-grant college of agriculture.
              (6) Qualified product or project.--The term
            ``qualified product or project'' means--
                      (A) engineering, mechanization, or technology
                    improvements that will address challenges
                    relating to growing, harvesting, handling,
                    processing, storing, packing, and distribution
                    of agricultural products;
                      (B) plant disease or plant pest recovery
                    countermeasures to intentional or unintentional
                    biological threats (including naturally
                    occurring threats), including--
                              (i) replacement or resistant plant
                            cultivars or varieties;
                              (ii) other enhanced management
                            strategies, including novel chemical,
                            biological, or cultural approaches; or
                              (iii) diagnostic or surveillance
                            technology; [and]
                      (C) veterinary countermeasures to intentional
                    or unintentional biological threats (including
                    naturally occurring threats), including--
                              (i) animal vaccine or therapeutic
                            products (including anti-infective
                            products); or
                              (ii) diagnostic or surveillance
                            technology[.]; or
                      (D) any other product or project, as
                    determined by the Secretary.
              (7) Research tool.--The term ``research tool'' means
            a device, technology, procedure, biological material,
            reagent, computer system, computer software, or
            analytical technique [that is developed to assist in
            the discovery, development, or manufacture of a
            qualified product or project].
      (b) Agriculture Advanced Research and Development
    Authority.--
              (1) Establishment.--There is established within the
            Department of Agriculture a pilot program that shall be
            known as the Agriculture Advanced Research and
            Development Authority (referred to in this section as
            the ``AGARDA'') to carry out advanced research and
            development.
              (2) Goals.--The goals of the AGARDA are--
                      (A) to develop and deploy advanced solutions
                    to prevent, prepare, and protect against
                    unintentional and intentional threats to
                    agriculture and food in the United States;
                      [(B) to overcome barriers in the development
                    of agricultural technologies, research tools,
                    and qualified products and projects that
                    enhance export competitiveness, environmental
                    sustainability, and resilience to extreme
                    weather;]
                      (B) to overcome the long-term and high-risk
                    technological barriers in the development of
                    agricultural technologies, research tools, and
                    qualified products and projects that enhance
                    export competitiveness, environmental
                    sustainability, water conservation, and
                    resilience to extreme weather, drought,
                    infectious diseases, plant and animal
                    pathogens, and plant and animal pests;
                      (C) to ensure that the United States
                    maintains and enhances its position as a leader
                    in developing and deploying agricultural
                    technologies, research tools, and qualified
                    projects and products that increase economic
                    opportunities and security for farmers,
                    ranchers, and rural communities; and
                      (D) to undertake advanced research and
                    development in areas in which industry by
                    itself is not likely to do so because of the
                    technological or financial uncertainty.
              (3) Leadership.--
                      (A) In general.--The AGARDA shall be a
                    component of the Office of the Chief Scientist.
                      (B) Director.--
                              (i) In general.--The AGARDA shall be
                            headed by a Director, who shall be
                            appointed by the Chief Scientist.
                              (ii) Qualifications.--The Director
                            shall be an individual who, by reason
                            of professional background and
                            experience, is exceptionally qualified
                            to advise the Chief Scientist on, and
                            manage advanced research and
                            development programs and other matters
                            pertaining to--
                                      (I) qualified products and
                                    projects;
                                      (II) agricultural
                                    technologies;
                                      (III) research tools; and
                                      (IV) challenges relating to
                                    the matters described in
                                    subclauses (I) through (III).
                              (iii) Relationship within the
                            department of agriculture.--The
                            Director shall report to the Chief
                            Scientist.
              (4) Duties.--To achieve the goals described in
            paragraph (2), the Secretary, acting through the
            Director, shall accelerate advanced research and
            development by--
                      (A) identifying and promoting advances in
                    basic sciences;
                      (B) translating scientific discoveries and
                    inventions into technological innovations;
                      (C) collaborating with other agencies,
                    relevant industries, academia, international
                    agencies, the Foundation for Food and
                    Agriculture Research, and other relevant
                    [persons] eligible entities to carry out the
                    goals described in paragraph (2), including
                    convening, at a minimum, annual meetings or
                    working groups to demonstrate the operation and
                    effectiveness of advanced research and
                    development of qualified products and projects,
                    agricultural technologies, and research tools;
                      (D) conducting ongoing searches for, and
                    support calls for, potential advanced research
                    and development of agricultural technologies,
                    qualified products and projects, and research
                    tools;
                      (E) awarding grants and entering into
                    contracts, cooperative agreements, or other
                    transactions under paragraph (6) for advanced
                    research and development of agricultural
                    technology, qualified products and projects,
                    and research tools;
                      (F) establishing issue-based
                    multidisciplinary teams to reduce the time and
                    cost of solving specific problems that--
                              (i) are composed of representatives
                            from Federal and State agencies,
                            professional groups, academia, and
                            industry;
                              (ii) seek novel and effective
                            solutions; and
                              (iii) encourage data sharing and
                            translation of research to field use;
                            and
                      (G) serving as a resource for interested
                    [persons] eligible entities regarding
                    requirements under relevant laws that impact
                    the development, commercialization, and
                    technology transfer of qualified products and
                    projects, agricultural technologies, and
                    research tools.
              (5) Priority.--In awarding grants and entering into
            contracts, cooperative agreements, or other
            transactions under paragraph (4)(E), the Secretary
            shall give priority to projects that accelerate the
            advanced research and development of qualified products
            and projects that--
                      (A) address critical research and development
                    needs for technology for specialty crops; or
                      (B) prevent, protect, and prepare against
                    intentional and unintentional threats to
                    agriculture and food.
              (6) Other transaction authorities.--
                      (A) In general.--In carrying out the pilot
                    program under this section, the Secretary shall
                    have the authority to enter into other
                    transactions in the same manner and subject to
                    the same terms and conditions as transactions
                    that the Secretary of Defense may enter into
                    under section 4021 of title 10, United States
                    Code.
                      (B) Scope.--The authority of the Secretary to
                    enter into contracts, cooperative agreements,
                    and other transactions under this subsection
                    shall be in addition to the authorities under
                    this Act and title I of the Department of
                    Agriculture and Related Agencies Appropriation
                    Act, 1964 (7 U.S.C. 3318a), to use contracts,
                    cooperative agreements, and grants in carrying
                    out the pilot program under this section.
                      (C) Guidelines.--The Secretary shall
                    establish guidelines regarding the use of the
                    authority under subparagraph (A).
                      (D) Technology transfer.--In entering into
                    other transactions, the Secretary may negotiate
                    terms for technology transfer in the same
                    manner as a Federal laboratory under paragraphs
                    (1) through (4) of section 12(b) of the
                    Stevenson-Wydler Technology Innovation Act of
                    1980 (15 U.S.C. 3710a(b)).
              (7) Availability of data.--
                      (A) In general.--The Secretary shall require
                    that, as a condition of being awarded a
                    contract or grant or entering into a
                    cooperative agreement or other transaction
                    under paragraph (4)(E), [a person] an eligible
                    entity shall make available to the Secretary on
                    an ongoing basis, and submit to the Secretary
                    on request of the Secretary, all data relating
                    to or resulting from the activities carried out
                    by [the person] the eligible entity pursuant to
                    this section.
                      (B) Exemption from disclosure.--
                              (i) In general.--This subparagraph
                            shall be considered a statute described
                            in section 552(b)(3)(B) of title 5,
                            United States Code.
                              (ii) Exemption.--The following
                            information shall be exempt from
                            disclosure under section 552 of title
                            5, United States Code, and withheld
                            from the public:
                                      (I) Specific technical data
                                    or scientific information that
                                    is created or obtained under
                                    this section that reveals
                                    significant and not otherwise
                                    publicly known vulnerabilities
                                    of existing agriculture and
                                    food defenses against
                                    biological, chemical, nuclear,
                                    or radiological threats.
                                      (II) Trade secrets or
                                    commercial or financial
                                    information that is privileged
                                    or confidential (within the
                                    meaning of section 552(b)(4) of
                                    title 5, United States Code)
                                    and obtained in the conduct of
                                    research or as a result of
                                    activities under this section
                                    from a non-Federal party
                                    participating in a contract,
                                    grant, cooperative agreement,
                                    or other transaction under this
                                    section.
                              (iii) Limitation.--Information that
                            results from research and development
                            activities conducted under this section
                            and that would be a trade secret or
                            commercial or financial information
                            that is privileged or confidential if
                            the information had been obtained from
                            a non-Federal party participating in a
                            cooperative agreement or other
                            transaction shall be withheld from
                            disclosure under subchapter II of
                            chapter 5 of title 5, United States
                            Code, for 5 years.
              (8) Milestone-based payments allowed.--In awarding
            contracts and grants and entering into cooperative
            agreements or other transactions under paragraph
            (4)(E), the Secretary may--
                      (A) use milestone-based awards and payments;
                    and
                      (B) terminate a project for not meeting
                    technical milestones.
              (9) Use of existing personnel authorities.--In
            carrying out this subsection, the Secretary may appoint
            highly qualified individuals to scientific or
            professional positions on the same terms and conditions
            as provided in subsections (b)(3), (b)(4), (c), (d),
            (e), and (f) of section 620 of the Agricultural
            Research, Extension, and Education Reform Act of 1998
            (7 U.S.C. 7657).
              (10) Report and evaluation.--
                      (A) 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 an annual report examining the actions
                    undertaken and results generated by the AGARDA.
                      (B) Evaluation.--After the date on which the
                    AGARDA has been in operation for 3 years, the
                    Comptroller General of the United States shall
                    conduct an evaluation--
                              (i) to be completed and submitted to
                            the Committee on Agriculture of the
                            House of Representatives and the
                            Committee on Agriculture, Nutrition,
                            and Forestry of the Senate not later
                            than 1 year after the date on which the
                            Comptroller General began conducting
                            the evaluation;
                              (ii) describing the extent to which
                            the AGARDA is achieving the goals
                            described in paragraph (2); and
                              (iii) including a recommendation on
                            whether the AGARDA should be continued,
                            terminated, or expanded.
      (c) Strategic Plan.--
              (1) In general.--Not later than 360 days after the
            date of enactment of this section, the Secretary shall
            develop and make publicly available a strategic plan
            describing the strategic vision that the AGARDA shall
            use--
                      (A) to make determinations for future
                    investments during the period of effectiveness
                    of this section; and
                      (B) to achieve the goals described in
                    subsection (b)(2).
              (2) Dissemination.--The Secretary shall disseminate
            the information contained in the strategic plan under
            paragraph (1) to [persons] eligible entities who may
            have the capacity to substantially contribute to the
            activities described in that strategic plan.
              (3) Coordination; consultation.--The Secretary
            shall--
                      (A) update and coordinate the strategic
                    coordination plan under section 221(d)(7) of
                    the Department of Agriculture Reorganization
                    Act of 1994 with the strategic plan developed
                    under paragraph (1) for activities relating to
                    agriculture and food defense countermeasure
                    development and procurement; and
                      (B) in developing the strategic plan under
                    paragraph (1), consult with--
                              (i) the National Agricultural
                            Research, Extension, Education, and
                            Economics Advisory Board established
                            under section 1408(a);
                              (ii) the specialty crops committee
                            established under section 1408A(a)(1);
                              (iii) relevant agriculture research
                            agencies of the Federal Government;
                              (iv) the National Academies of
                            Sciences, Engineering, and Medicine;
                              (v) the National Veterinary Stockpile
                            Intra-Government Advisory Committee for
                            Strategic Steering; and
                              (vi) other appropriate parties, as
                            determined by the Secretary.
              (4) Use of strategic plan.--The Secretary shall use
            the strategic plan developed under paragraph (1) to
            inform the administration of AGARDA under this section.
      (d) Funds.--
              (1) Establishment.--There is established in the
            Treasury the Agriculture Advanced Research and
            Development Fund, which shall be administered by the
            Secretary, acting through the Director--
                      (A) for the purpose of carrying out this
                    section; and
                      (B) in the same manner and subject to the
                    same terms and conditions as are applicable to
                    the Secretary of Defense under section 4021 of
                    title 10, United States Code.
              (2) Deposits into fund.--
                      (A) In general.--The Secretary, acting
                    through the Director, may accept and deposit
                    into the Fund monies received pursuant to cost
                    recovery, contribution, or royalty payments
                    under a contract, grant, cooperative agreement,
                    or other transaction under this section.
                      (B) Availability of amounts in fund.--Amounts
                    deposited into the fund shall remain available
                    until expended, without further appropriation,
                    and may be used to carry out the purposes of
                    this section.
                      (C) Clarification.--Nothing in this paragraph
                    authorizes the use of the funds of the
                    Commodity Credit Corporation to carry out this
                    section.
              (3) Funding.--In addition to funds otherwise
            deposited in the Fund under paragraph (1) or (2), there
            is authorized to be appropriated to the Fund
            $50,000,000 for each of fiscal years 2019 through
            [2023] 2031, to remain available until expended.
      (e) Termination of Effectiveness.--
              (1) In general.--Except as provided under paragraph
            (2), the authority provided by this section terminates
            on the date that is [5 years] 13 years after the date
            of the enactment of the Agriculture Improvement Act of
            2018.
              (2) Exceptions.--Paragraph (1) shall not apply with
            respect to--
                      (A) subsection (b)(7)(B); and
                      (B) grants awarded or contracts, cooperative
                    agreements, or other transactions entered into
                    before the end of the [5-year] 13-year period
                    referred to in such clause.

                            Subtitle L--Aquaculture

               *       *       *       *       *       *       *

    SEC. 1477. AUTHORIZATION OF APPROPRIATIONS.

      (a) In General.--There are authorized to be appropriated to
    carry out this subtitle--
              (1) $7,500,000 for each of fiscal years 1991 through
            2013; and
              (2) $5,000,000 for each of fiscal years 2014 through
            [2023] 2031.
      (b) Prohibition on Use.--Funds made available under this
    section may not be used to acquire or construct a building.

                        [Subtitle M--Rangeland Research

                                    [purpose

      [Sec. 1478. It is the purpose of this subtitle to promote the
    general welfare through improved productivity of the Nation's
    rangelands, which comprise 60 per centum of the land area of
    the United States. Most of these rangelands are unsuited for
    cultivation, but produce a great volume of forage that is
    inedible by humans but readily converted, through an energy
    efficient process, to high quality food protein by grazing
    animals. These native grazing lands are located throughout the
    United States and are important resources for major segments of
    the Nation's livestock industry. In addition to the many
    livestock producers directly dependent on rangelands, other
    segments of agriculture are indirectly dependent on range-fed
    livestock and on range-produced forage that can be substituted
    for grain in times of grain scarcity. Recent resource
    assessments indicate that forage production of rangeland can be
    increased at least 100 per centum through development and
    application of improved range management practices while
    simultaneously enhancing wildlife, watershed, recreational, and
    aesthetic values and reducing hazards of erosion and flooding.

                          [rangeland research program

      [Sec. 1479. The Secretary may develop and implement a
    cooperative rangeland research program in coordination with the
    program carried out under the Renewable Resources Extension Act
    of 1978 to improve the production and quality of desirable
    native forages or introduced forages which are managed in a
    similar manner to native forages for livestock and wildlife.
    The program shall include studies of: (1) management of
    rangelands and agricultural lands as integrated systems for
    more efficient utilization of crops and waste products in the
    production of food and fiber; (2) methods of managing rangeland
    watersheds to maximize efficient use of water and improve water
    yield, water quality, and water conservation, to protect
    against onsite and offsite damage of rangeland resources from
    floods, erosion, and other detrimental influences, and to
    remedy unsatisfactory and unstable rangeland conditions; (3)
    revegetation and rehabilitation of rangelands including the
    control of undesirable species of plants; and (4) such other
    matters as the Secretary considers appropriate.

    [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 (including funding from an agricultural
            commodity promotion, research, and information
            program).
              [(2) Exception.--Paragraph (1) shall not apply to a
            grant to a Federal laboratory or a grant under
            subsection (a)(2).

                                [appropriations

      [Sec. 1483. (a) There are authorized to be appropriated, to
    implement the provisions of this subtitle--
              [(1) $10,000,000 for each of fiscal years 1991
            through 2013; and
              [(2) $2,000,000 for each of fiscal years 2014 through
            2023.
      [(b) Funds appropriated under this section shall be allocated
    by the Secretary to eligible institutions for work to be done
    as mutually agreed upon between the Secretary and the eligible
    institution or institutions.]

                            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--
              (1) such sums as are necessary for each of fiscal
            years 2002 through 2013;
              (2) $20,000,000 for each of fiscal years 2014 through
            2018; and
              (3) $30,000,000 for each of fiscal years 2019 through
            [2023] 2031.
      (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 and
    cooperative agreements) 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 award competitive grants and cooperative
            agreements to universities and qualified research
            institutions for research on counterbioterrorism.
              (4) To counter or otherwise respond to chemical or
            biological attack.
              (5) To coordinate the tactical science activities of
            the Research, Education, and Economics mission area of
            the Department that protect the integrity, reliability,
            sustainability, and profitability of the food and
            agricultural system of the United States against
            biosecurity threats from pests, diseases, contaminants,
            and disasters.

    SEC. 1485. [AGRICULTURE RESEARCH FACILITY EXPANSION AND SECURITY
                        UPGRADES.]  AGRICULTURE AND FOOD PROTECTION GRANT
                        PROGRAM.

      [(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.]
      (a) In General.--The Secretary shall establish a competitive
    grant program under which the Secretary will award grants to
    eligible entities to support research, extension, and education
    activities that improve the capability of the United States to
    protect the food and agricultural system from any chemical,
    biological, cybersecurity, or bioterrorism attack.
      (b) Use of Funds.--Grants made under this section shall be
    used to--
              (1) encourage basic and applied research and
            development of agricultural countermeasures;
              (2) promote the development and expansion of teaching
            programs in agriculture, veterinary medicine, and other
            disciplines closely allied to the food and agriculture
            system to increase the number of trained individuals
            with an expertise in agricultural biosecurity and
            cybersecurity;
              (3) expand or upgrade facilities to meet biosafety
            and biosecurity requirements necessary to protect
            facility staff, members of the public, and the food
            supply while carrying out agricultural biosecurity
            research;
              (4) costs associated with the acquisition of
            equipment and other capital costs related to expansion
            of food, agriculture, and veterinary medicine teaching
            programs in agricultural biosecurity and cybersecurity;
            or
              (5) otherwise improve the capacity of the United
            States to respond in a timely manner to emerging or
            existing threats.
      (c) Eligible Entities.--Entities eligible to receive a grant
    under this section include--
              (1) State agricultural experiment stations;
              (2) State departments of agriculture;
              (3) colleges and universities;
              (4) university research foundations;
              (5) other research institutions and organizations;
              (6) Federal agencies;
              (7) national laboratories; or
              (8) any group consisting of 2 or more of the entities
            described in paragraphs (1) through (7).
      [(g)] (d) Authorization of Appropriations.--There are
    authorized to be appropriated to carry out this section such
    sums as are necessary [for each fiscal year.] for each of
    fiscal years 2027 through 2031.

                Subtitle O--Institutions of Higher Education in
                                 Insular Areas

               *       *       *       *       *       *       *

    SEC. 1490. DISTANCE EDUCATION GRANTS FOR INSULAR AREAS.

      (a) In General.--The Secretary may make competitive 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--
              (1) such sums as are necessary for each of fiscal
            years 2002 through 2013; and
              (2) $2,000,000 for each of fiscal years 2014 through
            [2023] 2031.

    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.
      (c) Authorization of appropriations.--There are authorized to
    be appropriated to carry out this section--
              (1) such sums as are necessary for each of fiscal
            years 2002 through 2013; and
              (2) $2,000,000 for each of fiscal years 2014 through
            [2023] 2031.

                                  ----------

                AGRICULTURAL RESEARCH, EXTENSION, AND EDUCATION
                              REFORM ACT OF 1998

               *       *       *       *       *       *       *

                TITLE IV--NEW AGRICULTURAL RESEARCH, EXTENSION,
                           AND EDUCATION INITIATIVES

               *       *       *       *       *       *       *

    [SEC. 404. BIOBASED PRODUCTS.

      [(a) Definition of Biobased Product.--In this section, the
    term ``biobased product'' means a product suitable for food or
    nonfood use that is derived in whole or in part from renewable
    agricultural and forestry materials.
      [(b) Coordination of Biobased Product Activities.--The
    Secretary of Agriculture shall--
              [(1) coordinate the research, technical expertise,
            economic information, and market information resources
            and activities of the Department to develop,
            commercialize, and promote the use of biobased
            products;
              [(2) solicit input from private sector persons who
            produce, or are interested in producing, biobased
            products;
              [(3) provide a centralized contact point for advice
            and technical assistance for promising and innovative
            biobased products; and
              [(4) submit an annual report to Congress describing
            the coordinated research, marketing, and
            commercialization activities of the Department relating
            to biobased products.
      [(c) Cooperative Agreements for Biobased Products.--
              [(1) Agreements authorized.--The Secretary may enter
            into cooperative agreements with private entities
            described in subsection (d), under which the facilities
            and technical expertise of the Agricultural Research
            Service and the Forest Service may be made available to
            operate pilot plants and other large-scale preparation
            facilities for the purpose of bringing technologies
            necessary for the development and commercialization of
            new biobased products to the point of practical
            application.
              [(2) Description of cooperative activities.--
            Cooperative activities may include--
                      [(A) research on potential environmental
                    impacts of a biobased product;
                      [(B) methods to reduce the cost of
                    manufacturing a biobased product; and
                      [(C) other appropriate research.
              [(3) Authority of secretary.--To carry out a
            cooperative agreement with a private entity under
            paragraph (1), the Secretary may rent to the private
            entity equipment, the title of which is held by the
            Federal Government.
      [(d) Eligible Partners.--The following entities shall be
    eligible to enter into a cooperative agreement under subsection
    (c):
              [(1) A party that has entered into a cooperative
            research and development agreement with the Secretary
            under section 12 of the Stevenson-Wydler Technology
            Innovation Act of 1980 (15 U.S.C. 3710a).
              [(2) A recipient of funding from the Biotechnology
            Research and Development Corporation.
              [(3) A recipient of funding from the Secretary under
            a Small Business Innovation Research Program
            established under section 9 of the Small Business Act
            (15 U.S.C. 638).
      [(e) Pilot Project.--The Secretary, acting through the
    Agricultural Research Service, may establish and carry out a
    pilot project under which grants are provided, on a competitive
    basis, to scientists of the Agricultural Research Service to--
              [(1) encourage innovative and collaborative science;
            and
              [(2) during each of fiscal years 1999 through 2012,
            develop biobased products with promising commercial
            potential.
      [(f) Source of Funds.--
              [(1) In general.--Except as provided in paragraph
            (2), to carry out this section, the Secretary may use--
                      [(A) funds appropriated to carry out this
                    section; and
                      [(B) funds otherwise available for
                    cooperative research and development agreements
                    under the Stevenson-Wydler Technology
                    Innovation Act of 1980 (15 U.S.C. 3701 et
                    seq.).
              [(2) Exception.--The Secretary may not use funds
            referred to in paragraph (1)(B) to carry out subsection
            (e).
      [(g) Sale of Developed Products.--For the purpose of
    determining the market potential for new biobased products
    produced at a pilot plant or other large-scale preparation
    facility under a cooperative agreement under this section, the
    Secretary shall authorize the private partner or partners to
    the agreement to sell the products.
      [(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 1999 through 2012.]

    SEC. 405. NATIONAL FOOD SAFETY TRAINING, EDUCATION, EXTENSION,
                        OUTREACH, AND TECHNICAL ASSISTANCE PROGRAM.

      (a) In General.--The Secretary shall award grants under this
    section to carry out the competitive grant program established
    under section 1011(d) of the Federal Food, Drug, and Cosmetic
    Act, pursuant to any memoranda of understanding entered into
    under such section.
      (b) Integrated Approach.--The grant program described under
    subsection (a) shall be carried out under this section in a
    manner that facilitates the integration of food safety
    standards and guidance with the variety of agricultural
    production systems, encompassing conventional, sustainable,
    organic, and conservation and environmental practices.
      (c) Priority.--In awarding grants under this section, the
    Secretary shall give priority to projects that target small and
    medium-sized farms, beginning farmers, socially disadvantaged
    farmers, veteran farmers or ranchers (as defined in section
    2501(a) of the Food, Agriculture, Conservation, and Trade Act
    of 1990 (7 U.S.C. 2279(a))), small processors, or small fresh
    fruit and vegetable merchant wholesalers.
      [(d) Program Coordination.--
              [(1) In general.--The Secretary shall coordinate
            implementation of the grant program under this section
            with the National Integrated Food Safety Initiative.
              [(2) Interaction.--The Secretary shall--
                      [(A) in carrying out the grant program under
                    this section, take into consideration applied
                    research, education, and extension results
                    obtained from the National Integrated Food
                    Safety Initiative; and
                      [(B) in determining the applied research
                    agenda for the National Integrated Food Safety
                    Initiative, take into consideration the needs
                    articulated by participants in projects funded
                    by the program under this section.]
      [(e)] (d) Grants.--
              (1) In general.--In carrying out this section, the
            Secretary shall make competitive grants to support
            training, education, extension, outreach, and technical
            assistance projects that will help improve public
            health by increasing the understanding and adoption of
            established food safety standards, guidance, and
            protocols.
              (2) Encouraged features.--The Secretary shall
            encourage projects carried out using grant funds under
            this section to include co-management of food safety,
            conservation systems, and ecological health.
              (3) Term of grant.--A grant under this section shall
            have a term that is not more than 3 years.
      [(f)] (e) Grant Eligibility.--
              (1) In general.--To be eligible for a grant under
            this section, an entity shall be--
                      (A) a State cooperative extension service;
                      (B) a Federal, State, local, or tribal
                    agency, a nonprofit community-based or non-
                    governmental organization, or an organization
                    representing owners and operators of farms,
                    small food processors, or small fruit and
                    vegetable merchant wholesalers that has a
                    commitment to public health and expertise in
                    administering programs that contribute to food
                    safety;
                      (C) an institution of higher education (as
                    defined in section 101(a) of the Higher
                    Education Act of 1965 (20 U.S.C. 1001(a))) or a
                    foundation maintained by an institution of
                    higher education;
                      (D) a collaboration of 2 of more eligible
                    entities described in this subsection; or
                      (E) such other appropriate entity, as
                    determined by the Secretary.
              (2) Multistate partnerships.--Grants under this
            section may be made for projects involving more than 1
            State.
      [(g)] (f) Regional Balance.--In making grants under this
    section, the Secretary shall, to the maximum extent
    practicable, ensure--
              (1) geographic diversity; and
              (2) diversity of types of agricultural production.
      [(h)] (g) Technical Assistance.--The Secretary may use funds
    made available under this section to provide technical
    assistance to grant recipients to further the purposes of this
    section.
      [(i)] (h) Best Practices and Model Programs.--Based on
    evaluations of, and responses arising from, projects funded
    under this section, the Secretary may issue a set of
    recommended best practices and models for food safety training
    programs for agricultural producers, small food processors, and
    small fresh fruit and vegetable merchant wholesalers.
      [(j)] (i) Authorization of Appropriations.--For the purposes
    of making grants under this section, there is authorized to be
    appropriated $10,000,000 for each of fiscal years 2019 through
    [2023] 2031.

    SEC. 406. INTEGRATED RESEARCH, EDUCATION, AND EXTENSION COMPETITIVE
                        GRANTS PROGRAM.

      (a) Purpose.--It is the purpose of this section to authorize
    the Secretary of Agriculture to establish an integrated
    research, education, and extension competitive grant program to
    provide funding for integrated, multifunctional agricultural
    research, extension, and education activities.
      (b) Competitive Grants Authorized.--Subject to the
    availability of appropriations to carry out this section, the
    Secretary may award grants 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. 3103)),
    1994 Institutions, and Hispanic-serving agricultural colleges
    and universities on a competitive basis for integrated
    agricultural research, education, and extension projects in
    accordance with this section.
      (c) Criteria for Grants.--Grants under this section shall be
    awarded to address priorities in United States agriculture,
    determined by the Secretary in consultation with the Advisory
    Board, that involve integrated research, extension, and
    education activities.
      (d) Matching Funds Requirement.--
              (1) In general.--Subject to paragraph (3), with
            respect to a grant under this section that provides a
            particular benefit to a specific agricultural
            commodity, the recipient of the grant shall provide
            non-Federal matching funds (including funds from an
            agricultural commodity promotion, research, and
            information program) equal to not less than the amount
            of the grant.
              (2) In-kind support.--Non-Federal matching funds
            described in paragraph (1) may include in-kind support.
              (3) Waiver.--The Secretary may waive the matching
            funds requirement under paragraph (1) with respect to a
            grant if the Secretary determines that--
                      (A) the results of the grant are of a
                    particular benefit to a specific agricultural
                    commodity, but those results are likely to be
                    applicable to agricultural commodities
                    generally; or
                      (B)(i) the grant--
                              (I) involves a minor commodity; and
                              (II) deals with scientifically
                            important research; and
                      (ii) the recipient is unable to satisfy the
                    matching funds requirement.
      (e) Term of Grant.--A grant under this section shall have a
    term of not more than 5 years.
      (f) Authorization of Appropriations.--There are authorized to
    be appropriated such sums as are necessary to carry out this
    section for each of fiscal years 1999 through [2023] 2031.

               *       *       *       *       *       *       *

    SEC. 408. SUPPORT FOR RESEARCH REGARDING DISEASES OF WHEAT, TRITICALE,
                        AND BARLEY CAUSED BY FUSARIUM GRAMINEARUM OR BY
                        TILLETIA INDICA.

      (a) Research Grants 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'').
      (b) Research Components.--Funds provided under this section
    shall be available for the following collaborative, multi-State
    research activities:
              (1) Identification and understanding of the
            epidemiology of wheat scab or of Karnal bunt, and the
            toxicological properties of vomitoxin, a toxic
            metabolite commonly occurring in wheat, triticale, and
            barley infected with wheat scab.
              (2) Development of crop management strategies to
            reduce the risk of wheat scab or Karnal bunt
            occurrence.
              (3) Development of--
                      (A) efficient and accurate methods to monitor
                    wheat, triticale, and barley for the presence
                    of Karnal bunt or of wheat scab and resulting
                    vomitoxin contamination;
                      (B) post-harvest management techniques for
                    wheat, triticale, and barley infected with
                    wheat scab or with Karnal bunt; and
                      (C) milling and food processing techniques to
                    render wheat scab contaminated grain safe.
              (4) Strengthening and expansion of plant-breeding
            activities to enhance the resistance of wheat,
            triticale, and barley to wheat scab and to Karnal bunt,
            including the establishment of a regional advanced
            breeding material evaluation nursery and a germplasm
            introduction and evaluation system.
              (5) Development and deployment of alternative
            fungicide application systems and formulations to
            control wheat scab and Karnal bunt and consideration of
            other chemical control strategies to assist farmers
            until new more resistant wheat, triticale, and barley
            varieties are available.
      (c) Communications Networks.--Funds provided under this
    section shall be available for efforts to concentrate,
    integrate, and disseminate research, extension, and outreach-
    orientated information regarding wheat scab or Karnal bunt.
      (d) Management.--To oversee the use of a grant made under
    this section, the Secretary may establish a committee composed
    of the directors of the agricultural experiment stations in the
    States in which land-grant colleges and universities that are
    members of the consortium are located.
      (e) Authorization of Appropriations.--There are authorized to
    be appropriated to carry out this section--
              (1) such sums as may be necessary for each of fiscal
            years 1999 through 2013;
              (2) $10,000,000 for each of fiscal years 2014 through
            2018; and
              (3) $15,000,000 for each of fiscal years 2019 through
            [2023] 2031.
      (f) Limitation on Indirect Costs.--A recipient of a grant
    under this section may not use more than 10 percent of the
    funds provided by the grant for the indirect costs of carrying
    out the initiatives described in subsection (a).

    SEC. 410. GRANTS FOR YOUTH ORGANIZATIONS.

      (a) In General.--The Secretary, acting through the Director
    of the National Institute of Food and Agriculture, 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) Flexibility.--The Secretary shall provide maximum
    flexibility in content delivery to each organization receiving
    funds under this section so as to ensure that the unique goals
    of each organization, as well as the local community needs, are
    fully met.
      (c) Redistribution of Funding Within Organizations
    Authorized.--Recipients of funds under this section may
    redistribute all or part of the funds received to individual
    councils or local chapters within the councils without further
    need of approval from the Secretary.
      (d) Authorization of Appropriations.--There are authorized to
    be appropriated to carry out this section--
              (1) such sums as are necessary for each of fiscal
            years 2008 through 2013; and
              (2) $3,000,000 for each of fiscal years 2014 through
            [2023] 2031.

    [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 2012.]

    SEC. 412. SPECIALTY CROP RESEARCH INITIATIVE.

      (a) Definitions.--In this section:
              (1) Citrus disease subcommittee.--The term ``citrus
            disease subcommittee'' means the subcommittee
            established under section 1408A(a)(2) of the National
            Agricultural Research, Extension, and Teaching Policy
            Act of 1977.
              (2) Initiative.--The term ``Initiative'' means the
            specialty crop research and extension initiative
            established by subsection (b).
              (3) Specialty crop.--The term ``specialty crop'' has
            the meaning given that term in section 3 of the
            Specialty Crops Competitiveness Act of 2004 (7 U.S.C.
            1621 note; Public Law 108-465).
              (4) Specialty crops committee.--The term ``specialty
            crops committee'' means the committee established under
            section 1408A of the National Agricultural Research,
            Extension, and Teaching Policy Act of 1977 (7 U.S.C.
            3123a).
      (b) Establishment.--There is established within the
    Department a specialty crop research and extension initiative
    to address the critical needs of the specialty crop industry by
    developing and disseminating science-based tools to address
    needs of specific crops and their regions, including--
              (1) research in plant breeding, genetics, genomics,
            and other methods to improve crop characteristics, such
            as--
                      (A) product, taste, quality, and appearance;
                      (B) size-controlling rootstock systems for
                    perennial crops;
                      (C) environmental responses and tolerances;
                      (D) nutrient management, including plant
                    nutrient uptake efficiency;
                      (E) pest and disease management, including
                    resistance to pests and diseases resulting in
                    reduced application management strategies; and
                      (F) enhanced phytonutrient content;
              (2) efforts to identify and address threats from
            pests and diseases, including--
                      (A) threats to specialty crop pollinators;
                      (B) emerging and invasive species; and
                      (C) a more effective understanding and
                    utilization of existing natural enemy
                    complexes;
              (3) efforts--
                      (A) to improve production efficiency,
                    handling and processing, productivity, and
                    profitability over the long term (including
                    specialty crop policy and marketing); and
                      (B) to achieve a better understanding of--
                              (i) the soil rhizosphere microbiome;
                              (ii) pesticide application systems
                            and certified drift-reduction
                            technologies; and
                              (iii) systems to improve and extend
                            the storage life of specialty crops;
              (4) new innovations and technology, including--
                      (A) mechanization and automation of labor-
                    intensive tasks in production and processing;
                      (B) technologies that delay or inhibit
                    ripening;
                      (C) decision support systems driven by
                    phenology and environmental factors;
                      (D) improved monitoring systems for
                    agricultural pests; and
                      (E) effective systems for preharvest and
                    postharvest management of quarantine pests; and
              (5) methods to prevent, detect, monitor, control, and
            respond to potential food safety hazards in the
            production and processing of specialty crops, including
            fresh produce.
      (c) Eligible Entities.--The Secretary may carry out this
    section through--
              (1) Federal agencies;
              (2) national laboratories;
              (3) colleges and universities;
              (4) research institutions and organizations;
              (5) private organizations or corporations;
              (6) State agricultural experiment stations;
              (7) individuals; or
              (8) groups consisting of 2 or more entities described
            in paragraphs (1) through (7).
      (d) Review of Proposals.--In carrying out this section, the
    Secretary shall award competitive grants on the basis of--
              (1) a scientific peer review conducted by a panel of
            subject matter experts from Federal agencies, non-
            Federal entities, and the specialty crop industry; and
              (2) a review and ranking for merit, relevance, and
            impact conducted by a panel of specialty crop industry
            representatives for the specific specialty crop.
      (e) Consultation.--Each fiscal year, before conducting the
    scientific peer review described in paragraph (1) of subsection
    (d) and the merit and relevancy review described in paragraph
    (2) of such subsection, the Secretary shall consult with the
    specialty crops committee regarding such reviews. The committee
    shall provide the Secretary--
              (1) in the first fiscal year in which that
            consultation occurs, any recommendations for conducting
            such reviews in such fiscal year; and
              (2) in any subsequent fiscal year in which such
            consultation occurs--
                      (A) an assessment of the procedures and
                    objectives used by the Secretary for such
                    reviews in the previous fiscal year;
                      (B) any recommendations for such reviews for
                    the current fiscal year; and
                      (C) any comments on grants awarded under
                    subsection (d) during the previous fiscal year.
      (f) 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--
              (1) the results of the consultations with the
            specialty crops committee (and subcommittees thereof)
            conducted under subsection (e) of this section and
            subsection (g) of section 1408A of the National
            Agricultural Research, Extension, and Teaching Policy
            Act of 1977 (7 U.S.C. 3123a);
              (2) the specialty crops committee's (and
            subcommittees thereof) recommendations, if any,
            provided to the Secretary during such consultations;
            and
              (3) the specialty crops committee's (and
            subcommittees thereof) review of the grants awarded
            under [subsection (d) and (j)] subsections (d), (j),
            and (k), as applicable, in the previous fiscal year.
      (g) Administration.--
              (1) In general.--With respect to grants awarded under
            this section, the Secretary shall seek and accept
            proposals for grants.
              (2) Term.--The term of a grant under this section may
            not exceed 10 years.
              (3) Matching requirement.--
                      (A) In general.--An entity receiving a grant
                    under this section shall provide non-Federal
                    matching funds (including funds from an
                    agricultural commodity promotion, research, and
                    information program) equal to not less than the
                    amount of the grant.
                      (B) In-kind support.--Non-Federal matching
                    funds described in subparagraph (A) may include
                    in-kind support.
                      (C) Waiver.--The Secretary may waive the
                    matching funds requirement under subparagraph
                    (A) with respect to a grant if the Secretary
                    determines that--
                              (i) the results of the grant are of a
                            particular benefit to a specific
                            specialty crop, but such results are
                            likely to be applicable to specialty
                            crops or agricultural commodities,
                            generally; or
                              (ii)(I) the grant--
                                      (aa) involves a minor
                                    commodity; and
                                      (bb) deals with
                                    scientifically important
                                    research; and
                              (II) the recipient is unable to
                            satisfy the matching funds requirement.
              (4) Other conditions.--The Secretary may set such
            other conditions on the award of a grant under the
            Initiative as the Secretary determines to be
            appropriate.
      (h) Priorities.--In making grants under the Initiative, the
    Secretary shall provide a higher priority to projects that--
              (1) are multistate, multi-institutional, or
            multidisciplinary; and
              (2) include explicit mechanisms to communicate
            results to producers and the public.
      (i) Buildings and Facilities.--Funds made available under
    this section shall not be used for the construction of a new
    building or facility or the acquisition, expansion, remodeling,
    or alteration of an existing building or facility (including
    site grading and improvement, and architect fees).
      (j) Emergency Citrus Disease Research and Extension
    Program.--
              (1) Establishment and purpose.--The Secretary shall
            establish a competitive research and extension grant
            program to combat diseases of citrus under which the
            Secretary awards competitive grants to eligible
            entities--
                      (A) to conduct scientific research and
                    extension activities, technical assistance, and
                    development activities to combat citrus
                    diseases and pests, both domestic and invasive,
                    which pose imminent harm to the United States
                    citrus production and threaten the future
                    viability of the citrus industry, including
                    huanglongbing and the Asian Citrus Psyllid; and
                      (B) to provide support for the dissemination
                    and commercialization of relevant information,
                    techniques, and technologies discovered
                    pursuant to research and extension activities
                    funded through--
                              (i) the emergency citrus disease
                            research and extension program; or
                              (ii) other research and extension
                            projects intended to solve problems
                            caused by citrus production diseases
                            and invasive pests.
              (2) Priority.--In awarding grants under this
            subsection, the Secretary shall give priority to grants
            that address the research and extension priorities
            established pursuant to subsection (g)(4) of section
            1408A of the National Agricultural Research, Extension,
            and Teaching Policy Act of 1977 (7 U.S.C. 3123a).
              (3) Coordination.--When developing the proposed
            research and extension agenda and budget under
            subsection (g)(2) of section 1408A of the National
            Agricultural Research, Extension, and Teaching Policy
            Act of 1977 (7 U.S.C. 3123a) for the funds made
            available under this subsection for a fiscal year, the
            citrus disease subcommittee shall--
                      (A) seek input from Federal and State
                    agencies and other entities involved in citrus
                    disease response; and
                      (B) take into account other public and
                    private citrus-related research and extension
                    projects and the funding for such projects.
              (4) Nonduplication.--The Secretary shall ensure that
            funds made available to carry out the emergency citrus
            disease research and extension activities under this
            subsection shall be in addition to and not supplant
            funds made available to carry out other citrus disease
            activities carried out by the Department of Agriculture
            in consultation with State agencies.
              (5) Authorization of appropriations.--In addition to
            the amounts reserved under [subsection (k)(1)(C)]
            subsection (l)(1)(C), there are authorized to be
            appropriated to carry out this subsection, $25,000,000
            for each of fiscal years 2014 through 2018.
              (6) Definitions.--In this subsection:
                      (A) Citrus.--The term ``citrus'' means edible
                    fruit of the family Rutaceae, including any
                    hybrid of such fruits and products of such
                    hybrids that are produced for commercial
                    purposes in the United States.
                      (B) Citrus producer.--The term ``citrus
                    producer'' means any person that is engaged in
                    the domestic production and commercial sale of
                    citrus in the United States.
                      (C) Emergency citrus disease research and
                    extension program.--The term ``emergency citrus
                    disease research and extension program'' means
                    the emergency citrus research and extension
                    grant program established under this
                    subsection.
      (k) Specialty Crop Mechanization and Automation Research and
    Extension Program.--The Secretary shall establish a competitive
    research and extension grant program to award grants to
    eligible entities to increase the competitiveness of specialty
    crops in the United States through the advancement and
    acceleration of mechanization and automation, including
    projects that--
              (1) create or improve cost-effective mechanization
            and automation technologies to--
                      (A) reduce the manual labor requirements of a
                    specialty crop grower; or
                      (B) increase the efficiency of--
                              (i) crop production;
                              (ii) resource management;
                              (iii) harvesting;
                              (iv) processing;
                              (v) post-harvest technologies; or
                              (vi) packing;
              (2) increase adoption of mechanization and automation
            technologies by--
                      (A) emphasizing adoption drivers, including--
                              (i) connectivity;
                              (ii) autonomy;
                              (iii) reliability;
                              (iv) durability;
                              (v) in-field validation; or
                              (vi) cost-effectiveness; or
                      (B) investing in, and developing human
                    capital to, increase the capacity to--
                              (i) utilize new technologies; or
                              (ii) manage a more tech-focused farm
                            workforce; or
              (3) accelerate automation and mechanization through--
                      (A) prototype development;
                      (B) in-field trial testing;
                      (C) ongoing industry engagement; or
                      (D) rapid commercialization.
      [(k)] (l) Funding.--
              (1) Mandatory funding.--
                      (A) Fiscal years 2008 through 2012.--Of the
                    funds of the Commodity Credit Corporation, the
                    Secretary shall make available to carry out
                    this section $30,000,000 for fiscal year 2008
                    and $50,000,000 for each of fiscal years 2009
                    through 2012, from which activities under each
                    of paragraphs (1) through (5) of subsection (b)
                    shall be allocated not less than 10 percent.
                      (B) Subsequent funding.--Of the funds of the
                    Commodity Credit Corporation, the Secretary
                    shall make available to carry out this
                    section--
                              (i) $80,000,000 for each of fiscal
                            years 2014 through 2025; and
                              (ii) $175,000,000 for fiscal year
                            2026 and each fiscal year thereafter.
                      [(C) Reservation.--For each of fiscal years
                    2014 through 2018, the Secretary shall reserve
                    not less than $25,000,000 of the funds made
                    available under subparagraph (B) to carry out
                    the program established under subsection (j).
                      [(D) Availability of funds.--Funds reserved
                    under subparagraph (C) shall remain available
                    and reserved for the purpose described in such
                    subparagraph until expended.]
                      (C) Reservation for specialty crop
                    mechanization and automation research and
                    extension program.--For each of fiscal years
                    2027 through 2031, the Secretary shall reserve
                    not less than $30,000,000 of the funds made
                    available under subparagraph (B) to carry out
                    the program established under subsection (k).
                      (D) Reallocation.--Notwithstanding paragraph
                    (4), any funds reserved under subparagraph (C)
                    that remain unobligated at the end of the
                    fiscal year following the fiscal year in which
                    such funds are first made available shall be
                    reallocated to carry out activities of the
                    specialty crop research initiative established
                    under subsection (b).
              (2) Authorization of appropriations [for fiscal years
            2014 through 2023].--In addition to funds made
            available under paragraph (1), there is authorized to
            be appropriated to carry out this section $100,000,000
            for each of fiscal years 2014 through [2023] 2031.
              [(3) Fiscal year 2013.--There is authorized to be
            appropriated to carry out this section $100,000,000 for
            fiscal year 2013.]
              [(4)] (3) Transfer.--Of the funds made available to
            the Secretary under paragraph (1) for fiscal year 2008
            and authorized for use for payment of administrative
            expenses under section 1469(a)(3) of the National
            Agricultural Research, Extension, and Teaching Policy
            Act of 1977 (7 U.S.C. 3315(a)(3)), the Secretary shall
            transfer, upon the date of enactment of this section,
            $200,000 to the Office of Prevention, Pesticides, and
            Toxic Substances of the Environmental Protection Agency
            for use in conducting a meta-analysis relating to
            methyl bromide.
              [(5)] (4) Availability.--Funds made available
            pursuant to this subsection for a fiscal year shall
            remain available until expended to pay for obligations
            incurred in that fiscal year.

               *       *       *       *       *       *       *

    SEC. 414. AGRICULTURE GRANTS FOR VETERAN EDUCATION AND TRAINING
                        SERVICES.

      (a) In General.--The Secretary shall establish a program
    under which the Secretary will award competitive grants to
    eligible entities for the purpose of establishing and enhancing
    farming and ranching opportunities for veterans (as defined in
    section 101(2) of title 38, United States Code).
      (b) Eligible Entities.--An entity is eligible for a grant
    under this section if such entity is--
              (1) a cooperative extension service;
              (2) 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));
              (3) a non-land-grant college of agriculture (as
            defined in such section);
              (4) a Hispanic-serving agricultural college and
            university (as defined in such section);
              (5) a State department of agriculture;
              (6) a nonprofit organization;
              (7) a community-based organization; or
              (8) a combination of 2 or more eligible entities
            described in paragraphs (1) through (7).
      (c) Use of Funds.--An eligible entity that receives a grant
    under this section shall use the funds received through the
    grant--
              (1) to provide training and classroom education that
            leads to a comprehensive understanding of farm and
            ranch business operations and management practices;
              (2) to develop or identify curriculum that veteran
            farmers and ranchers can adopt to help manage their
            enterprise;
              (3) to offer education, workshops, tours, and
            instructor-supervised field experiences; or
              (4) to support any other activity, as identified by
            the Secretary, to increase the number of veterans
            pursuing knowledge and skills development in
            agriculture.
      (d) Matching Funds.--An entity that receives a grant under
    this section shall provide non-Federal matching funds for the
    purposes of carrying out this section in an amount equal to not
    less than the amount of the grant.
      (e) Authorization of Appropriations.--There are authorized to
    be appropriated to carry out this section $3,000,000 for each
    of fiscal years 2025 through 2031.

               *       *       *       *       *       *       *

                       TITLE VI--MISCELLANEOUS PROVISIONS

                        Subtitle A--Existing Authorities

               *       *       *       *       *       *       *

    SEC. 604. FOOD ANIMAL RESIDUE AVOIDANCE DATABASE PROGRAM.

      (a) Continuation of Program.--The Secretary of Agriculture
    shall continue operation of the Food Animal Residue Avoidance
    Database program (referred to in this section as the ``FARAD
    program'') through contracts, grants, or cooperative agreements
    with appropriate colleges or universities.
      (b) Activities.--In carrying out the FARAD program, the
    Secretary shall--
              (1) provide livestock producers, extension
            specialists, scientists, and veterinarians with
            information to prevent drug, pesticide, and
            environmental contaminant residues in food animal
            products;
              (2) maintain up-to-date information concerning--
                      (A) withdrawal times on FDA-approved food
                    animal drugs and appropriate withdrawal
                    intervals for drugs used in food animals in the
                    United States, as established under section
                    512(a) of the Federal Food, Drug, and Cosmetic
                    Act (21 U.S.C. 360b(a));
                      (B) official tolerances for drugs and
                    pesticides in tissues, eggs, and milk;
                      (C) descriptions and sensitivities of rapid
                    screening tests for detecting residues in
                    tissues, eggs, and milk; and
                      (D) data on the distribution and fate of
                    chemicals in food animals;
              (3) publish periodically a compilation of food animal
            drugs approved by the Food and Drug Administration;
              (4) make information on food animal drugs available
            to the public through handbooks and other literature,
            computer software, a telephone hotline, and the
            Internet;
              (5) furnish producer quality-assurance programs with
            up-to-date data on approved drugs;
              (6) maintain a comprehensive and up-to-date, residue
            avoidance database;
              (7) provide professional advice for determining the
            withdrawal times necessary for food safety in the use
            of drugs in food animals; and
              (8) engage in other activities designed to promote
            food safety.
      (c) Contract, Grants, and Cooperative Agreements.--The
    Secretary shall offer to enter into a contract, grant, or
    cooperative agreement with 1 or more appropriate colleges and
    universities to operate the FARAD program. The term of the
    contract, grant, or cooperative agreement shall be 3 years,
    with options to extend the term of the contract triennially.
      (d) Indirect Costs.--Federal funds provided by the Secretary
    under a contract, grant, or cooperative agreement under this
    section shall be subject to reduction for indirect costs of the
    recipient of the funds in an amount not to exceed 19 percent of
    the total Federal funds provided under the contract, grant, or
    cooperative agreement.
      (e) Authorization of Appropriations.--In addition to any
    other funds available to carry out subsection (c), there is
    authorized to be appropriated to carry out this section
    $2,500,000 for each of fiscal years 2008 through [2023] 2031.

               *       *       *       *       *       *       *

                          Subtitle B--New Authorities

               *       *       *       *       *       *       *

    SEC. 614. OFFICE OF PEST MANAGEMENT POLICY.

      (a) Purpose.--The purpose of this section is to establish an
    Office of Pest Management Policy to provide for the effective
    coordination of agricultural policies and activities within the
    Department of Agriculture related to pesticides and of the
    development and use of pest management tools, while taking into
    account the effects of regulatory actions of other government
    agencies.
      (b) Establishment of Office; Principal Responsibilities.--The
    Secretary of Agriculture shall establish in the Department an
    Office of Pest Management Policy, which shall be responsible
    for--
              (1) the development and coordination of Department
            policy on pest management and pesticides;
              (2) the coordination of activities and services of
            the Department, including research, extension, and
            education activities, regarding the development,
            availability, and use of economically and
            environmentally sound pest management tools and
            practices;
              (3) assisting other agencies of the Department in
            fulfilling their responsibilities related to pest
            management or pesticides under the Food Quality
            Protection Act of 1996 (Public Law 104-170; 110 Stat.
            1489), the Federal Insecticide, Fungicide, and
            Rodenticide Act (7 U.S.C. 136 et seq.), the Federal
            Food, Drug, and Cosmetic Act (21 U.S.C. 301 et seq.),
            and other applicable laws; and
              (4) performing such other functions as may be
            required by law or prescribed by the Secretary.
      (c) Interagency Coordination.--In support of its
    responsibilities under subsection (b), the Office of Pest
    Management Policy shall provide leadership to ensure
    coordination of interagency activities with the Environmental
    Protection Agency, the Food and Drug Administration, and other
    Federal and State agencies.
      (d) Outreach.--The Office of Pest Management Policy shall
    consult with agricultural producers that may be affected by
    pest management or pesticide-related activities or actions of
    the Department or other agencies as necessary in carrying out
    the Office's responsibilities under this section.
      (e) Director.--The Office of Pest Management Policy shall be
    under the direction of a Director appointed by the Secretary,
    who shall report directly to the Secretary or a designee of the
    Secretary.
      (f) Authorization of Appropriations.--There are authorized to
    be appropriated to carry out this section--
              (1) such sums as are necessary for each of fiscal
            years 1999 through 2013; and
              (2) $3,000,000 for each of fiscal years 2014 through
            [2023] 2031.

               *       *       *       *       *       *       *

    SEC. 617. FORESTRY PRODUCTS ADVANCED UTILIZATION RESEARCH.

      (a) Establishment.--The Secretary shall establish a forestry
    and forestry products research and extension initiative to
    develop and disseminate science-based tools that address the
    needs of the forestry sector and their respective regions,
    forest and timberland owners and managers, and forestry
    products engineering, manufacturing, and related interests.
      (b) Activities.--The initiative described in subsection (a)
    shall include the following activities:
              (1) Research conducted for purposes of--
                      (A) wood quality improvement with respect to
                    lumber strength and grade yield;
                      (B) the development of novel engineered
                    lumber products and renewable energy from wood;
                    and
                      (C) enhancing the longevity, sustainability,
                    and profitability of timberland through sound
                    management and utilization.
              (2) Demonstration activities and technology transfer
            to demonstrate the beneficial characteristics of wood
            as a green building material, including investments in
            life cycle assessment for wood products.
              (3) Projects designed to improve--
                      (A) forestry products, lumber, and evaluation
                    standards and valuation techniques;
                      (B) lumber quality and value-based, on-forest
                    management techniques; and
                      (C) forestry products conversion and
                    manufacturing efficiency, productivity, and
                    profitability over the long term (including
                    forestry product marketing).
      (c) Grants.--
              (1) In general.--The Secretary shall make competitive
            grants to carry out the activities described in
            subsection (b).
              (2) Priorities.--In making grants under this section,
            the Secretary shall give higher priority to activities
            that are carried out by entities that--
                      (A) are multistate, multiinstitutional, or
                    multidisciplinary;
                      (B) have explicit mechanisms to communicate
                    results to producers, forestry industry
                    stakeholders, policymakers, and the public; and
                      (C) have--
                              (i) extensive history and
                            demonstrated experience in forestry and
                            forestry products research;
                              (ii) existing capacity in forestry
                            products research and dissemination;
                            and
                              (iii) a demonstrated means of
                            evaluating and responding to the needs
                            of the related commercial sector.
              (3) Administration.--In making grants under this
            section, the Secretary shall follow the requirements of
            paragraphs (4), (7), (8), and (11)(B) of subsection (b)
            of the Competitive, Special, and Facilities Research
            Grant Act (7 U.S.C. 450i).
              (4) Term.--The term of a grant made under this
            section may not exceed 10 years.
      (d) Coordination.-- The Secretary shall ensure that any
    activities carried out under this section are carried out in
    coordination with the Forest Service, including the Forest
    Products Laboratory, and other appropriate agencies of the
    Department.
      (e) Report.--The Secretary shall submit an annual report to
    the Committee on Agriculture of the House of Representatives
    and the Committee on Agriculture, Nutrition, and Forestry of
    the Senate describing, for the period covered by the report--
              (1) the research that has been conducted under
            paragraph (2) of subsection (b);
              (2) the number of buildings the Forest Service has
            built with wood as the primary structural material; and
              (3) the investments made by the Forest Service in
            green building and wood promotion.
      (f) Authorization of Appropriations.--
              (1) In general.--There are authorized to be
            appropriated to carry out this section $7,000,000 for
            each of fiscal years 2014 through [2023] 2031.
              (2) Matching funds.--To the extent practicable, the
            Secretary shall match any funds made available under
            paragraph (1) with funds made available under section 7
            of the Forest and Rangeland Renewable Resources
            Research Act of 1978 (16 U.S.C.1646).

               *       *       *       *       *       *       *

                                  ----------

              EQUITY IN EDUCATIONAL LAND-GRANT STATUS ACT OF 1994

               *       *       *       *       *       *       *

                       TITLE V--MISCELLANEOUS PROVISIONS

               *       *       *       *       *       *       *

                           PART C--1994 INSTITUTIONS

               *       *       *       *       *       *       *

    SEC. 533. LAND-GRANT STATUS FOR 1994 INSTITUTIONS.

      (a) In General.--
              (1) Status of 1994 institutions.--Except as provided
            in paragraph (2), 1994 Institutions shall be considered
            land-grant colleges established for the benefit of
            agriculture and the mechanic arts in accordance with
            the provisions of the Act of July 2, 1862 (12 Stat.
            503; 7 U.S.C. 301 et seq.) (commonly known as the First
            Morrill Act).
              (2)  1994 institutions.--(A) 1994 Institutions shall
            not be considered as land-grant colleges that are
            eligible to receive funding under--
                      (i) the Act of March 2, 1887 (24 Stat. 440,
                    chapter 314; 7 U.S.C. 361a et seq.);
                              (ii) the Smith-Lever Act (7 U.S.C.
                            341 et seq.), except as provided
                            under--
                                      (I) section 3(b)(3) of that
                                    Act (7 U.S.C. 343(b)(3)); or
                                      (II) the third sentence of
                                    section 3(d) of that Act (7
                                    U.S.C. 343(d)); or
                      (iii) the Act of August 30, 1890 (26 Stat.
                    417, chapter 841; 7 U.S.C. 321 et seq.)
                    (commonly known as the Second Morrill Act).
              (B) In lieu of receiving donations under the
            provisions of the Act of July 2, 1862 (12 Stat. 503; 7
            U.S.C. 301 et seq.) (commonly known as the First
            Morrill Act), relating to the donations of public land
            or scrip for the endowment and maintenance of colleges
            for the benefit of agriculture and the mechanic arts,
            1994 Institutions shall receive funding pursuant to the
            authorization under subsection (b).
              (3) Accreditation.--To receive funding under this
            section and sections 534, 535, and 536, a 1994
            Institution shall certify to the Secretary that the
            1994 Institution--
                      (A) is accredited by a nationally recognized
                    accrediting agency or association determined by
                    the Secretary, in consultation with the
                    Secretary of Education, to be a reliable
                    authority regarding the quality of training
                    offered; or
                      (B) is making progress toward the
                    accreditation, as determined by the nationally
                    recognized accrediting agency or association.
      (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 1996 through [2023] 2031.
    Amounts appropriated pursuant to this section shall be held and
    considered to have been granted to 1994 Institutions to
    establish an endowment pursuant to subsection (c).
      (c) Endowment.--
              (1) In general.--In accordance with this subsection,
            the Secretary of the Treasury shall establish a 1994
            Institutions Endowment Fund (hereafter in this
            subsection referred to as the ``endowment fund''). The
            Secretary may enter into such agreements as are
            necessary to carry out this subsection.
              (2) Deposit to the endowment fund.--The Secretary
            shall deposit in the endowment fund any--
                      (A) amounts made available by appropriations
                    pursuant to subsection (b) (hereafter in this
                    subsection referred to as the ``endowment fund
                    corpus''); and
                      (B) interest earned on the endowment fund
                    corpus.
              (3) Investments.--The Secretary shall invest the
            endowment fund corpus and income in interest-bearing
            obligations of the United States.
              (4) Withdrawals and expenditures.--The Secretary may
            not make a withdrawal or expenditure from the endowment
            fund corpus. On the termination of each fiscal year,
            the Secretary shall withdraw the amount of the income
            from the endowment fund for the fiscal year, and after
            making adjustments for the cost of administering the
            endowment fund, distribute the adjusted income as
            follows:
                      (A) 60 percent of the adjusted income shall
                    be distributed among the 1994 Institutions on a
                    pro rata basis. The proportionate share of the
                    adjusted income received by a 1994 Institution
                    under this subparagraph shall be based on the
                    Indian student count (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) for each 1994 Institution
                    for the fiscal year.
                      (B) 40 percent of the adjusted income shall
                    be distributed in equal shares to the 1994
                    Institutions.
      (d) Memorandum of Agreement.--Not later than January 6, 1997,
    the Secretary shall develop and implement a formal memorandum
    of agreement with the 1994 Institutions to establish programs
    to ensure that tribally controlled colleges and Native American
    communities equitably participate in Department of Agriculture
    employment, programs, services, and resources.

    SEC. 534. APPROPRIATIONS.

      (a) Authorization of Appropriations.--
              (1) In general.--For fiscal year 1996, and for each
            fiscal year thereafter, there are authorized to be
            appropriated to the Department of the Treasury an
            amount [equal to] that is not less than--
                      (A) $100,000; multiplied by
                      (B) the number of 1994 Institutions.
              (2) Payments.--For each fiscal year, the Secretary of
            the Treasury shall pay to the treasurer of each 1994
            Institution an amount equal to--
                      (A) the total amount made available by
                    appropriations pursuant to paragraph (1);
                    divided by
                      (B) the number of 1994 Institutions.
              (3) Use of funds; requirements.--
                      (A) In general.--Except as provided in
                    subparagraph (B), the amounts authorized to be
                    appropriated under this subsection shall be
                    used in the same manner as is prescribed for
                    colleges under the Act of August 30, 1890 (26
                    Stat. 417, chapter 841; 7 U.S.C. 321 et seq.)
                    (commonly known as the Second Morrill Act),
                    and, except as otherwise provided in this
                    subsection, the requirements of such Act shall
                    apply to 1994 Institutions.
                      (B) Redistribution.--Funds that would be paid
                    to a 1994 Institution under paragraph (2) shall
                    be withheld from that 1994 Institution and
                    redistributed among the other 1994 Institutions
                    if that 1994 Institution--
                              (i) declines to accept funds under
                            paragraph (2); or
                              (ii) fails to meet the accreditation
                            requirements under section 533(a)(3).
      (b) Funding.--

    SEC. 535. INSTITUTIONAL CAPACITY BUILDING GRANTS.

      (a) Definitions.--As used in this section:
              (1) Federal share.--The term ``Federal share'' means,
            with respect to a grant awarded under subsection (b),
            the share of the grant that is provided from Federal
            funds.
              (2) Non-federal share.--The term ``non-Federal
            share'' means, with respect to a grant awarded under
            subsection (b), the matching funds paid with funds
            other than funds referred to in paragraph (1), as
            determined by the Secretary.
              (3) Secretary.--The term ``Secretary'' means the
            Secretary of Agriculture.
      (b) In General.--
              (1) Institutional capacity building grants.--For each
            of fiscal years 1996 through [2023] 2031, the Secretary
            shall make two or more institutional capacity building
            grants to assist 1994 Institutions with constructing,
            acquiring, and remodeling buildings, laboratories, and
            other capital facilities (including fixtures and
            equipment) necessary to conduct instructional
            activities more effectively in agriculture and
            sciences.
              (2) Requirements for grants.--The Secretary shall
            make grants under this section--
                      (A) on the basis of a competitive application
                    process under which appropriate officials of
                    1994 Institutions may submit applications to
                    the Secretary in such form and manner as the
                    Secretary may prescribe; and
                      (B) in such manner as to ensure geographic
                    diversity with respect to the 1994 Institutions
                    that are the subject of the grants.
              (3) Demonstration of need.--The Secretary shall
            require, as part of an application for a grant under
            this subsection, a demonstration of need. The Secretary
            may only award a grant under this subsection to an
            applicant that demonstrates a failure to obtain funding
            for a project after making a reasonable effort to
            otherwise obtain the funding.
              (4) Payment of non-federal share.--A grant awarded
            under this subsection shall be made only if the
            recipient of the grant pays a non-Federal share in an
            amount specified by the Secretary.
      (c) Authorization of Appropriations.--There are authorized to
    be appropriated to the Department of Agriculture to carry out
    this section, such sums as are necessary for each of fiscal
    years 2002 through [2023] 2031.

    SEC. 536. RESEARCH GRANTS.

      (a) Research Grants Authorized.--The Secretary of Agriculture
    may make grants under this section, on the basis of a
    competitive application process (and in accordance with such
    regulations as the Secretary may promulgate), to a 1994
    Institution to assist the Institution to conduct agricultural
    research that addresses high priority concerns of tribal,
    national, or multistate significance and to acquire, alter,
    repair, maintain, and operate relevant equipment necessary for
    strengthening the capacity of the Institution to conduct
    research in the food and agricultural sciences.
      [(b) Requirements.--Grant applications submitted under this
    section shall certify that the research to be conducted will be
    performed under a cooperative agreement with--
              [(1) the Agricultural Research Service of the
            Department of Agriculture; or
              [(2) at least 1--
                      [(A) other land-grant college or university
                    (exclusive of another 1994 Institution);
                      [(B) non-land-grant college of agriculture
                    (as defined in section 1404 of the National
                    Agricultural Research, Extension, and Teaching
                    Policy Act of 1977 (7 U.S.C. 3103)); or
                      [(C) cooperating forestry school (as defined
                    in that section).]
      [(c)] (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 1999 through
    [2023] 2031. Amounts appropriated shall remain available until
    expended.

               *       *       *       *       *       *       *

                                  ----------

                            RESEARCH FACILITIES ACT

               *       *       *       *       *       *       *

    SEC. 6. AUTHORIZATION OF APPROPRIATIONS.

      (a) In General.--Subject to subsections (b), (c), and (d),
    there are authorized to be appropriated such sums as are
    necessary for each of fiscal years 1996 through [2023] 2031 for
    the study, plan, design, structure, and related costs of
    agricultural research facilities under this Act. Funds
    appropriated pursuant to the preceding sentence shall be
    available until expended.
      (b) Allowable Administrative Costs.--Not more than 3 percent
    of the funds made available for any project for an agricultural
    research facility shall be available for administration of the
    project.
      (c) Maximum Amount.--Not more than 25 percent of the funds
    made available pursuant to subsections (a) and (e) for any
    fiscal year shall be used for any single agricultural research
    facility project.
      (d) Project Limitation.--An entity eligible to receive funds
    under this Act may receive funds for only one project at a
    time.
      (e) Mandatory Funding.--Subject to subsections (b), (c), and
    (d), of the funds of the Commodity Credit Corporation, the
    Secretary shall make available to carry out the competitive
    grant program under section 4 $125,000,000 for fiscal year 2026
    and each fiscal year thereafter.

                                  ----------

            COMPETITIVE, SPECIAL, AND FACILITIES RESEARCH GRANT ACT

    SEC. 2. COMPETITIVE, SPECIAL, AND FACILITIES RESEARCH GRANTS.

      (a) Establishment of Grant Program.--(1) In order to promote
    research in food, agriculture, and related areas, a research
    grants program is hereby established in the Department of
    Agriculture.
      (2) Short Title.--This section may be cited as the
    ``Competitive, Special, and Facilities Research Grant Act''.
      (b) Agriculture and Food Research Initiative.--
              (1) Establishment.--There is established in the
            Department of Agriculture an Agriculture and Food
            Research Initiative under which the Secretary of
            Agriculture (referred to in this subsection as ``the
            Secretary'') may make competitive grants for
            fundamental and applied research, extension, and
            education to address food and agricultural sciences (as
            defined under section 1404 of the National Agricultural
            Research, Extension, and Teaching Policy Act of 1977 (7
            U.S.C. 3103)).
              (2) Priority areas.--The competitive grants program
            established under this subsection shall address the
            following areas:
                      (A) Plant health and production and plant
                    products.--Plant systems, including--
                              (i) plant genome structure and
                            function;
                              (ii) molecular and cellular genetics
                            and plant biotechnology;
                              (iii) conventional breeding,
                            including regionally adapted cultivar
                            and breed development, selection
                            theory, applied quantitative genetics,
                            breeding for improved food quality,
                            breeding for improved local adaptation
                            to biotic stress and abiotic stress,
                            breeding for environmental resilience,
                            and participatory breeding;
                              (iv) plant-pest interactions and
                            biocontrol systems;
                              (v) crop plant response to
                            environmental stresses;
                              (vi) unproved nutrient qualities of
                            plant products; and
                              (vii) new food and industrial uses of
                            plant products.
                      (B) Animal health and production and animal
                    products.--Animal systems, including--
                              (i) aquaculture, including methods of
                            increasing survival rate and
                            adaptability of shellfish;
                              (ii) cellular and molecular basis of
                            animal reproduction, growth, disease,
                            and health;
                              (iii) animal biotechnology;
                              (iv) conventional breeding, including
                            breed development, selection theory,
                            applied quantitative genetics, breeding
                            for improved food quality, breeding for
                            improved local adaptation to biotic
                            stress and abiotic stress, and
                            participatory breeding;
                              (v) identification of genes
                            responsible for improved production
                            traits and resistance to disease;
                              (vi) improved nutritional performance
                            of animals;
                              (vii) improved nutrient qualities of
                            animal products and uses;
                              (viii) the development of new and
                            improved animal husbandry and
                            production systems that take into
                            account production efficiency, animal
                            well-being, and animal systems
                            applicable to aquaculture;
                              (ix) the research and development of
                            surveillance methods, vaccines,
                            vaccination delivery systems, or
                            diagnostic tests for pests and
                            diseases, including--
                                      (I) epizootic diseases in
                                    domestic livestock (including
                                    deer, elk, bison, and other
                                    animals of the family
                                    Cervidae); and
                                      (II) zoonotic diseases
                                    (including bovine brucellosis
                                    and bovine tuberculosis) in
                                    domestic livestock or wildlife
                                    reservoirs that present a
                                    potential concern to public
                                    health; and
                              (x) the identification of animal drug
                            needs and the generation and
                            dissemination of data for safe and
                            effective therapeutic applications of
                            animal drugs for minor species and
                            minor uses of such drugs in major
                            species.
                      (C) Food safety, nutrition, and health.--
                    Nutrition, food safety and quality, and health,
                    including--
                              (i) microbial contaminants and
                            pesticides residue relating to human
                            health;
                              (ii) links between diet and health;
                              (iii) bioavailability of nutrients;
                              (iv) postharvest physiology and
                            practices; and
                              (v) improved processing technologies.
                      (D) Bioenergy, natural resources, and
                    environment.--Natural resources and the
                    environment, including--
                              (i) fundamental structures and
                            functions of ecosystems;
                              (ii) biological and physical bases of
                            sustainable production systems;
                              (iii) soil health;
                              (iv) minimizing soil and water losses
                            and sustaining surface water and ground
                            water quality;
                              (v) the effectiveness of conservation
                            practices and technologies designed to
                            address nutrient losses and improve
                            water quality;
                              (vi) global climate effects on
                            agriculture;
                              (vii) forestry; and
                              (viii) biological diversity.
                      (E) Agriculture systems and technology.--
                    Engineering, products, and processes,
                    including--
                              (i) new uses and new products from
                            traditional and nontraditional crops,
                            animals, byproducts, and natural
                            resources;
                              (ii) robotics, energy efficiency,
                            computing, and expert systems;
                              (iii) new hazard and risk assessment
                            and mitigation measures;
                              (iv) water quality and management;
                            [and]
                              (v) tools that accelerate the use of
                            automation or mechanization for labor-
                            intensive tasks in the production and
                            distribution of crops[.]; and
                              (vi) hydroponics, aquaponics,
                            aeroponics, and other production
                            technologies used in controlled-
                            environment agriculture production.
                      (F) Agriculture economics and rural
                    communities.--Markets, trade, economics, and
                    policy, including--
                              (i) strategies for entering into and
                            being competitive in domestic and
                            overseas markets, including supply
                            chain coordination and capacity
                            building;
                              (ii) farm efficiency and
                            profitability, including the viability
                            and competitiveness of small and
                            medium-sized dairy, livestock, crop and
                            other commodity operations;
                              (iii) new decision tools for farm and
                            market systems;
                              (iv) choices and applications of
                            technology;
                              (v) the economic costs, benefits, and
                            viability of producers adopting
                            conservation practices and technologies
                            designed to improve water quality;
                              (vi) technology assessment;
                              (vii) new approaches to rural
                            development, including rural
                            entrepreneurship[; and];
                              (viii) barriers and bridges to entry
                            and farm viability for young,
                            beginning, socially disadvantaged,
                            veteran, and immigrant farmers and
                            ranchers, including farm succession,
                            transition, transfer, entry, and
                            profitability issues[.];
                              (ix) workforce training and
                            development, including meat and poultry
                            processing (including rendering) and
                            precision agriculture; and
                              (x) reducing food loss and food
                            waste.
              (3) Term.--The term of a competitive grant made under
            this subsection may not exceed 10 years.
              (4) General administration.--In making grants under
            this subsection, the Secretary shall--
                      (A) seek and accept proposals for grants;
                      (B) determine the relevance and merit of
                    proposals through a system of peer and merit
                    review in accordance with section 103 of the
                    Agricultural Research, Extension, and Education
                    Reform Act of 1998 (7 U.S.C. 7613);
                      (C) award grants on the basis of merit,
                    quality, and relevance;
                      (D) solicit and consider input from persons
                    who conduct or use agricultural research,
                    extension, or education in accordance with
                    section 102(b) of the Agricultural Research,
                    Extension, and Education Reform Act of 1998 (7
                    U.S.C. 7612(b));
                      (E) in seeking proposals for grants under
                    this subsection and in performing peer review
                    evaluations of such proposals, seek the widest
                    participation of qualified individuals in the
                    Federal Government, colleges and universities,
                    State agricultural experiment stations, and the
                    private sector; and
                      (F) establish procedures, including
                    timelines, under which an entity established
                    under a commodity promotion law (as such term
                    is defined under section 501(a) of the Federal
                    Agriculture Improvement and Reform Act of 1996
                    (7 U.S.C. 7401(a))) or a State commodity board
                    (or other equivalent State entity) may directly
                    submit to the Secretary for consideration
                    proposals for requests for applications that
                    specifically address particular issues related
                    to the priority areas specified in paragraph
                    (2).
              (5) Allocation of funds.--In making grants under this
            subsection, the Secretary shall allocate funds to the
            Agriculture and Food Research Initiative to ensure
            that, of funds allocated for research activities--
                      (A) not less than 60 percent is made
                    available to make grants for fundamental
                    research (as defined in subsection (f)(1) of
                    section 251 of the Department of Agriculture
                    Reorganization Act of 1994 (7 U.S.C. 6971)), of
                    which--
                              (i) not less than 30 percent is made
                            available to make grants for research
                            to be conducted by multidisciplinary
                            teams; and
                              (ii) not more than 2 percent is used
                            for equipment grants under paragraph
                            (6)(A); and
                      (B) not less than 40 percent is made
                    available to make grants for applied research
                    (as defined in subsection (f)(1) of section 251
                    of the Department of Agriculture Reorganization
                    Act of 1994 (7 U.S.C. 6971)).
              (6) Special considerations.--In making grants under
            this subsection, the Secretary may assist in the
            development of capabilities in the agricultural, food,
            and environmental sciences by providing grants--
                      (A) to an institution to allow for the
                    improvement of the research, development,
                    technology transfer, and education capacity of
                    the institution through the acquisition of
                    special research equipment and the improvement
                    of agricultural education and teaching, except
                    that the Secretary shall use not less than 25
                    percent of the funds made available for grants
                    under this subparagraph to provide fellowships
                    to outstanding pre- and post-doctoral students
                    for research in the agricultural sciences;
                      (B) to a single investigator or
                    coinvestigators who are beginning research
                    careers and do not have an extensive research
                    publication record, except that, to be eligible
                    for a grant under this subparagraph, an
                    individual shall be within 5 years of the
                    beginning of the initial career track position
                    of the individual;
                      (C) to ensure that the faculty of small, mid-
                    sized, and minority-serving institutions who
                    have not previously been successful in
                    obtaining competitive grants under this
                    subsection receive a portion of the grants;
                      (D) to improve research, extension, and
                    education capabilities in States (as defined in
                    section 1404 of the National Agricultural
                    Research, Extension, and Teaching Policy Act of
                    1977 (7 U.S.C. 3103)) in which institutions
                    have been less successful in receiving funding
                    under this subsection, based on a 3-year
                    rolling average of funding levels;
                      (E) to eligible entities to carry out the
                    specific proposals submitted under procedures
                    established under paragraph (4)(F) only if such
                    specific proposals are consistent with a
                    priority area specified in paragraph (2); and
                      (F) to an institution to carry out
                    collaboration in biomedical and agricultural
                    research using existing research models.
              (7) Eligible entities.--The Secretary may make grants
            to carry out research, extension, and education under
            this subsection to--
                      (A) State agricultural experiment stations;
                      (B) colleges and universities;
                      (C) university research foundations;
                      (D) area career and technical education
                    schools;
                      [(D)] (E) other research institutions and
                    organizations;
                      [(E)] (F) Federal agencies;
                      [(F)] (G) national laboratories;
                      [(G)] (H) private organizations, foundations,
                    or corporations;
                      [(H)] (I) individuals; or
                      [(I)] (J) any group consisting of 2 or more
                    of the entities described in subparagraphs (A)
                    through [(H)] (I).
              (8) Construction prohibited.--Funds made available
            for grants under this subsection shall not be used for
            the construction of a new building or facility or the
            acquisition, expansion, remodeling, or alteration of an
            existing building or facility (including site grading
            and improvement, and architect fees).
              (9) Matching funds.--
                      (A) Equipment grants.--
                              (i) In general.--Except as provided
                            in clause (ii), in the case of a grant
                            made under paragraph (6)(A), the amount
                            provided under this subsection may not
                            exceed 50 percent of the cost of the
                            special research equipment or other
                            equipment acquired using funds from the
                            grant.
                              (ii) Waiver.--The Secretary may waive
                            all or part of the matching requirement
                            under clause (i) in the case of a
                            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, if the
                            equipment to be acquired using funds
                            from the grant costs not more than
                            $25,000 and has multiple uses within a
                            single research project or is usable in
                            more than 1 research project.
                      (B) Contribution requirement for commodity
                    promotion grants.--
                              (i) In general.--Subject to clause
                            (ii), as a condition of funding a grant
                            under paragraph (6)(E), the Secretary
                            shall require that the grant be matched
                            with an equal contribution of funds
                            from the entities described in
                            paragraph (4)(F) submitting proposals
                            under procedures established under such
                            paragraph.
                              (ii) Availability of funds.--
                                      (I) In general.--
                                    Contributions required by
                                    clause (i) shall be available
                                    to the Secretary for obligation
                                    and remain available until
                                    expended for the purpose of
                                    making grants under paragraph
                                    (6)(E).
                                      (II) Administration.--Of
                                    amounts contributed to the
                                    Secretary under clause (i), not
                                    more than 4 percent may be
                                    retained by the Secretary to
                                    pay administrative costs
                                    incurred by the Secretary in
                                    carrying out this subsection.
                                      (III) Restriction.--Funds
                                    contributed to the Secretary by
                                    an entity under clause (i) in
                                    connection with a proposal
                                    submitted by that entity under
                                    procedures established under
                                    paragraph (4)(F) may only be
                                    used to fund grants in
                                    connection with that proposal.
                                      (IV) Remaining funds.--Funds
                                    contributed to the Secretary by
                                    an entity under clause (i) that
                                    remain unobligated at the time
                                    of grant closeout shall be
                                    returned to that entity.
                                      (V) Indirect costs.--The
                                    indirect cost rate applicable
                                    to appropriated funds for a
                                    grant funded under paragraph
                                    (6)(E) shall apply to amounts
                                    contributed by an entity under
                                    clause (i).
                      (C) Applied research.--An entity receiving a
                    grant under paragraph (5)(B) for applied
                    research that is commodity-specific and not of
                    national scope shall provide non-Federal
                    matching funds equal to not less than the
                    amount of the grant.
              (10) Program administration.--To the maximum extent
            practicable, the Director of the National Institute of
            Food and Agriculture, in coordination with the Under
            Secretary for Research, Education, and Economics, shall
            allocate grants under this subsection to high-priority
            research, taking into consideration, when available,
            the determinations made by the National Agricultural
            Research, Extension, Education, and Economics Advisory
            Board (as established under section 1408 of the
            National Agricultural Research, Extension, and Teaching
            Policy Act of 1977 (7 U.S.C. 3123)).
              (11) Authorization of appropriations.--
                      (A) In general.--There is authorized to be
                    appropriated to carry out this subsection
                    $700,000,000 for each of fiscal years 2008
                    through [2023] 2031, of which--
                              (i) not less than 30 percent shall be
                            made available for integrated research
                            pursuant to section 406 of the
                            Agricultural Research, Extension, and
                            Education Reform Act of 1998 (7 U.S.C.
                            7626); and
                              (ii) not more than 5 percent may be
                            retained by the Secretary to pay
                            administrative costs incurred by the
                            Secretary in carrying out this
                            subsection.
                      (B) Availability.--Funds made available under
                    this paragraph shall--
                              (i) be available for obligation for a
                            2-year period beginning on October 1 of
                            the fiscal year for which the funds are
                            first made available; and
                              (ii) remain available until expended
                            to pay for obligations incurred during
                            that 2-year period.
      (c) Special Grants.--(1) The Secretary of Agriculture may
    make grants, for periods not to exceed 3 years--
              (A) to State agricultural experiment stations, all
            colleges and universities, other research institutions
            and organizations, Federal agencies, private
            organizations or corporations, and individuals for the
            purpose of conducting research, extension, or education
            activities to facilitate or expand promising
            breakthroughs in areas of the food and agricultural
            sciences of importance to the United States; and
              (B) to State agricultural experiment stations, land-
            grant colleges and universities, research foundations
            established by land-grant colleges and universities,
            colleges and universities receiving funds under the Act
            of October 10, 1962 (16 U.S.C. 582a et seq.), and
            accredited schools or colleges of veterinary medicine
            for the purpose of facilitating or expanding ongoing
            State-Federal food and agricultural research,
            extension, or education programs that--
                      (i) promote excellence in research,
                    extension, or education on a regional and
                    national level;
                      (ii) promote the development of regional
                    research centers;
                      (iii) promote the research partnership
                    between the Department of Agriculture, colleges
                    and universities, research foundations, and
                    State agricultural experiment stations for
                    regional research efforts; and
                      (iv) facilitate coordination and cooperation
                    of research, extension, or education among
                    States through regional grants.
      (2) Limitations.--The Secretary may not make a grant under
    this subsection for the planning, repair, rehabilitation,
    acquisition, or construction of a building or facility.
      (3) Matching Funds.--Grants made under this subsection shall
    be made without regard to matching funds.
      (4) Set Asides.--Of amounts appropriated for a fiscal year to
    carry out this subsection--
              (A) ninety percent of such amounts shall be used for
            grants for regional research projects; and
              (B) four percent of such amounts may be retained by
            the Secretary to pay administrative costs incurred by
            the Secretary to carry out this subsection.
              (5) Review requirements.--
                      (A) Research activities.--The Secretary shall
                    make a grant under this subsection for a
                    research activity only if the activity has
                    undergone scientific peer review arranged by
                    the grantee in accordance with regulations
                    promulgated by the Secretary.
                      (B) Extension and education activities.--The
                    Secretary shall make a grant under this
                    subsection for an extension or education
                    activity only if the activity has undergone
                    merit review arranged by the grantee in
                    accordance with regulations promulgated by the
                    Secretary.
              (6) Reports.--
                      (A) In general.--A recipient of a grant under
                    this subsection shall submit to the Secretary
                    on an annual basis a report describing the
                    results of the research, extension, or
                    education activity and the merit of the
                    results.
                      (B) Public availability.--
                              (i) In general.--Except as provided
                            in clause (ii), on request, the
                            Secretary shall make the report
                            available to the public.
                              (ii) Exceptions.--Clause (i) shall
                            not apply to the extent that making the
                            report, or a part of the report,
                            available to the public is not
                            authorized or permitted by section 552
                            of title 5, United States Code, or
                            section 1905 of title 18, United States
                            Code.
      (d) Extension Design and Demonstration Initiative.--
              (1) Purpose.--The purpose of this subsection is to
            encourage the design of adaptive prototype systems for
            improving extension and education that seek to advance
            the application, translation, and demonstration of
            scientific discoveries and other agricultural research
            for the adoption and understanding of food,
            agricultural, and natural resources practices,
            techniques, methods, and technologies using digital or
            other novel platforms.
              (2) Grants.--The Secretary shall award grants each
            fiscal year on a competitive basis--
                      (A) for the design of 1 or more extension and
                    education prototype systems--
                              (i) that leverage digital platforms
                            or other novel means of translating,
                            delivering, or demonstrating
                            agricultural research; and
                              (ii) to adapt, apply, translate, or
                            demonstrate scientific findings, data,
                            technology, and other research outcomes
                            to producers, the agricultural
                            industry, and other interested persons
                            or organizations; and
                      (B) to demonstrate, by incorporating
                    analytics and specific metrics, the value,
                    impact, and return on the Federal investment of
                    a prototype system designed under subparagraph
                    (A) as a model for use by other eligible
                    entities described in paragraph (3) for
                    improving, modernizing, and adapting applied
                    research, demonstration, and extension
                    services.
              (3) Eligible entities.--An entity that is eligible to
            receive a grant under paragraph (2) is--
                      (A) a State agricultural experiment station
                    (as defined in section 1404 of the National
                    Agricultural Research, Extension, and Teaching
                    Policy Act of 1977 (7 U.S.C. 3103));
                      (B) a cooperative extension service (as
                    defined in such section); and
                      (C) a land-grant college or university (as
                    defined in such section).
              (4) Requirement.--The Secretary shall award grants
            under paragraph (2) to not fewer than 2 and not more
            than 5 eligible entities described in paragraph (3)
            that represent a diversity of regions, commodities, and
            agricultural or food production issues.
              (5) Term.--The term of a grant awarded under
            paragraph (2) shall be not longer than 5 years.
              (6) Authorization of appropriations.--There is
            authorized to be appropriated to carry out this
            subsection $5,000,000 for each of fiscal years 2019
            through [2023] 2031, to remain available until
            expended.
      (e) Inter-Regional Research Project Number 4.--(1) The
    Secretary of Agriculture shall establish an Inter-Regional
    Research Project Number 4 (hereinafter referred to in this
    subsection as the ``IR-4 Program'') to assist in the collection
    of residue and efficacy data in support of--
              (A) the registration or reregistration of pesticides
            for minor agricultural use and for use on specialty
            crops (as defined in section 3 of the Specialty Crops
            Competitiveness Act of 2004 (7 U.S.C. 1621 note)),
            under the Federal Insecticide, Fungicide, and
            Rodenticide Act (7 U.S.C. 136 et seq.); and
              (B) tolerances for residues of minor use chemicals in
            or on raw agricultural commodities under sections 408
            and 409 of the Federal Food, Drug, and Cosmetic Act (21
            U.S.C. 346a, 348).
      (2) The Secretary shall carry out the IR-4 Program in
    cooperation with the Administrator of the Environmental
    Protection Agency, State agricultural experiment stations,
    colleges and universities, extension services, private
    industry, and other interested parties.
      (3) In carrying out the IR-4 Program, the Secretary shall
    give priority to registrations, reregistrations, and tolerances
    for pesticide uses related to the production of agricultural
    crops for food use.
      (4) As part of carrying out the IR-4 Program, the Secretary
    shall--
              (A) participate in research activities aimed at
            reducing residues of pesticides registered for minor
            agricultural use and for use on specialty crops;
              (B) develop analytical techniques applicable to
            residues of pesticides registered for minor
            agricultural use, including automation techniques and
            validation of analytical methods;
              (C) prioritize potential pest management technology
            for minor agricultural use and for use on specialty
            crops;
              (D) conduct research to develop the data necessary to
            facilitate pesticide registrations, reregistrations,
            and associated tolerances;
              (E) assist in removing trade barriers caused by
            residues of pesticides registered for minor
            agricultural use and for use on domestically grown
            specialty crops;
              (F) assist in the registration and reregistration of
            pest management technologies for minor agricultural use
            and for use on specialty crops; and
              (G) coordinate with other programs within the
            Department of Agriculture and the Environmental
            Protection Agency designed to develop and promote
            biological and other alternative control measures.
      (5) The Secretary shall prepare and submit, to appropriate
    Committees of Congress, a report on an annual basis that
    contains--
              (A) a listing of all registrations, reregistrations,
            and tolerances for which data has been collected in the
            preceding year;
              (B) a listing of all registrations, reregistrations,
            and tolerances for which data collection is scheduled
            to occur in the following year, with an explanation of
            the priority system used to develop this list; and
              (C) a listing of all activities the IR-4 Program has
            carried out pursuant to paragraph (4).
      (6) The Secretary shall submit to Congress not later than
    November 28, 1991, a report detailing the feasibility of
    requiring recoupment of the costs of developing residue data
    for registrations, reregistrations, or tolerances under this
    program. Such recoupment shall only apply to those registrants
    which make a profit on such registration, reregistration, or
    tolerance subsequent to residue data development under this
    program. Such report shall include:
              (A) an analysis of possible benefits to the IR-4
            Program of such a recoupment;
              (B) an analysis of the impact of such a payment on
            the availability of registrants to pursue registrations
            or reregistrations of minor use pesticides; and
              (C) recommendations for implementation of such a
            recoupment policy.
      (7) There are authorized to be appropriated $25,000,000 for
    fiscal year 1991, and such sums as are necessary for subsequent
    fiscal years to carry out this subsection.
      (f) Record Keeping.--Each recipient of assistance under this
    section shall keep such records as the Secretary of Agriculture
    shall, by regulation, prescribe, including records which fully
    disclose the amount and disposition by such recipient of the
    proceeds of such grants, the total cost of the project or
    undertaking in connection with which such funds are given or
    used, and the amount of that portion of the costs of the
    project or undertaking in connection with which such funds are
    given or used, and the amount of that portion of the costs of
    the project or undertaking supplied by other sources, and such
    other records as will facilitate an effective audit. The
    Secretary of Agriculture and the Comptroller General of the
    United States or any of their duly authorized representatives
    shall have access for the purpose of audit and examination to
    any books, documents, papers, and records of the recipients
    that are pertinent to the grants received under this section.
      (g) Limits on Overhead Costs.--The Secretary of Agriculture
    shall limit allowable overhead costs, with respect to grants
    awarded under this section, to those necessary to carry out the
    purposes of the grants.
      (h) Authorization of Appropriations.--Except as otherwise
    provided in subsections (b), (d), and (e), there are hereby
    authorized to be appropriated such sums as are necessary to
    carry out this section.
      (i) Rules.--The Secretary of Agriculture may issue such rules
    and regulations as the Secretary deems necessary to carry out
    this section.
      (j) Application of Other Laws.--Chapter 10 of title 5, United
    States Code, and title XVIII of the Food and Agriculture Act of
    1977 (7 U.S.C. 2281 et seq.) shall not apply to a panel or
    board created for the purpose of reviewing applications or
    proposals submitted under this section.
      (k) Emphasis on Sustainable Agriculture.--The Secretary of
    Agriculture shall ensure that grants made under subsections (b)
    and (c) are, where appropriate, consistent with the development
    of systems of sustainable agriculture. For purposes of this
    section, the term ``sustainable agriculture'' has the meaning
    given that term in section 1404 of the National Agricultural
    Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C.
    3103).

                                  ----------

                   RENEWABLE RESOURCES EXTENSION ACT OF 1978

               *       *       *       *       *       *       *

                          appropriations authorization

      Sec. 6. There is authorized to be appropriated to carry out
    this Act $30,000,000 for each of fiscal years 2002 through
    [2023] 2031. Generally, States shall be eligible for funds
    appropriated under this Act according to the respective
    capabilities of their private forests and rangelands for
    yielding renewable resources and relative needs for such
    resources identified in the periodic Renewable Resource
    Assessment provided for in section 3 of the Forest and
    Rangeland Renewable Resources Planning Act of 1974 and the
    periodic appraisal of land and water resources provided for in
    section 5 of the Soil and Water Resources Conservation Act of
    1977.

               *       *       *       *       *       *       *

                                 effective date

      Sec. 8. The provisions of this Act shall be effective for the
    period beginning October 1, 1978, and ending September 30,
    [2023] 2031.

                                  ----------

                        NATIONAL AQUACULTURE ACT OF 1980

               *       *       *       *       *       *       *

                     national aquaculture development plan

      Sec. 4. (a) In General.--(1) Within eighteen months after the
    date of the enactment of this Act, the Secretaries shall
    establish the National Aquaculture Development Plan.
      (2) In developing the Plan, and revisions thereto under
    subsection (d), beginning not later than six months after the
    date of enactment of this Act, the Secretary shall consult with
    the Secretary of Commerce and the Secretary of the Interior,
    other appropriate Federal officers, States, regional fishery
    management councils established under section 302 of the
    Fishery Conservation and Management Act of 1976 (16 U.S.C.
    1852), and representatives of the [acquaculture] aquaculture
    industry. In addition, the Secretary shall give interested
    persons and organizations an opportunity to comment during the
    development of the Plan.
      (b) Contents of Plan.--The plan shall--
              (1) identify aquatic species that the Secretaries
            determine to have significant potential for culturing
            on a commercial or other basis;
              (2) recommend actions to be taken by the public and
            private sectors (which may include, but are not limited
            to, research and development, technical assistance,
            demonstration, extension education, and training
            activities) that are necessary to achieve such
            potential;
              (3) address, after taking into account the status of
            aquaculture regarding the aquatic species concerned--
                      (A) aquaculture facility design and
                    operation,
                      (B) water quality management,
                      (C) use of waste products (including thermal
                    effluents),
                      (D) nutrition and the development of
                    economical feeds including natural food
                    sources,
                      (E) life history, genetics, physiology,
                    pathology, and disease control (including
                    research regarding organisms that may not be
                    harmful to fish and shellfish, but are
                    injurious to humans),
                      (F) processing and market development,
                      (G) production management and quality
                    control, and
                      (H) the development of adequate supplies of
                    seed stock;
              (4) include, where appropriate, research programs on
            the effect of aquaculture on estuarine and other water
            areas and on the management of such areas for
            aquaculture;
              (5) include, where appropriate, programs to analyze,
            and formulate proposed resolutions of, the legal or
            regulatory constraints that may affect aquaculture; and
              (6) include such other research and development,
            technical assistance, demonstration, extension
            education, and training programs as the Secretary deems
            necessary or appropriate to carry out this Act.
    In formulating the Plan, the Secretary shall, to the extent
    practicable, take into account any significant action that (i)
    has been, or is proposed to be, undertaken by any other Federal
    department or agency, any State agency, or any person, and (ii)
    may affect the implementation of the Plan.
      (c) Actions and Implementation.--The Plan shall specify--
              (1) with respect to those actions that the Secretary
            determines should be undertaken, the period of time
            within which each such action should be completed, in
            order to implement the Plan; and
              (2) with respect to each such action which of the
            Secretaries, acting individually, jointly, or
            collectively, has the responsibility for implementing
            the action.
    The specifications of Secretarial responsibilities under
    paragraph (2) for implementing actions shall be determined on
    the basis of--

              (A) the responsibilities conferred on the respective
            Secretaries by law or by any executive action having
            the effect of law (including, but not limited to,
            Reorganization Plan Numbered 4 of 1970);
              (B) the experience, expertise, and other appropriate
            resources that the department of each such Secretary
            may have with respect to the action required under the
            activity concerned; and
              (C) the concurrence of the Secretaries.
      (d) Revision of Plan.--The Secretaries shall undertake
    periodic reviews, not less than once every 3 years, of the
    operation and effectiveness of the Plan. If as a result of any
    such review, or the aquaculture assessment required under
    subsection (e), the Secretaries determine that--
              (1) any aquatic species not currently identified in
            the Plan has significant potential for aquaculture;
              (2) any action specified in the Plan is not being
            accomplished on a successful and timely basis; or
              (3) any action specified in the Plan should be
            terminated because its objectives have been achieved or
            its projected benefits do not warrant further support;
    the Secretaries shall appropriately amend the Plan.
      (e) Continuing Aquaculture Assessment.--The Secretaries,
    through the coordinating group, shall undertake a continuing
    assessment of aquaculture in the United States, not less than
    once every 3 years, for the purpose of maintaining, on a
    continuing basis--
              (1) a complete profile of the aquacultural industry
            with respect to the incidence, size, and status of
            commercial aquacultural enterprises;
              (2) the identification of the private and public
            institutions and organizations involved in aquacultural
            research, extension, credit, and market development;
              (3) the identification of the various aquatic species
            being cultured and a description of the status of
            commercial development of each of those species;
              (4) to the extent practicable, the identification of
            aquacultural production regions, species, and markets
            that have significant potential for development;
              (5) a catalog describing all Federal programs and
            activities that directly or indirectly encourage,
            support, or assist aquaculture; [and]
              (6) the identification of the economic, physical,
            legal, institutional, and social constraints that
            inhibit the development of aquaculture in the United
            States[.];
              (7) a catalog of new and existing capital
            constraints, as described in the capital requirements
            plan formulated under section 8(b), that affect the
            development of the aquaculture industry in the United
            States; and
              (8) a catalog of new and existing Federal or State
            regulatory barriers, as described in the regulatory
            constraints plan formulated under section 9(b), to the
            initiation and operation of commercial aquaculture
            ventures.

                      functions and powers of secretaries

      Sec. 5. (a) Mandatory Functions.--In implementing the Plan,
    the Secretaries shall--
              (1) provide advisory, educational, and technical
            assistance (including training) with respect to
            aquaculture to interested persons, and in providing
            such assistance, shall, to the maximum extent
            practicable, avoid duplication of similar assistance
            provided by other Federal departments and agencies and
            by State agencies;
              (2) consult and cooperate with interested persons,
            Federal departments and agencies, State agencies, and
            regional fishery management councils, established under
            section 302 of the Fishery Conservation and Management
            Act of 1976 (16 U.S.C. 1852);
              (3) encourage the implementation of aquaculture
            technology in the rehabilitation and enhancement of
            publicly owned fish and shellfish stocks (including
            rehabilitation and enhancement by private commercial
            aquacultural enterprises; and
              (4) prescribe such regulations as may be necessary to
            carry out the Plan.
      (b) Discretionary Functions.--In implementing the Plan, the
    Secretaries may--
              (1) for the purposes of assessing the biological,
            technical, and economic feasibility of any aquaculture
            system--
                      (A) conduct tests of the system, and, if
                    necessary to demonstrate its feasibility,
                    construct, operate, and maintain developmental
                    aquaculture facilities for testing laboratory
                    results, and
                      (B) conduct such other tests or analyses as
                    may be necessary;
              (2) develop methods to enhance seed stocks of aquatic
            species; and
              (3) conduct such other tests or analyses or take such
            other actions as the Secretaries deem necessary or
            appropriate.
      (c) Information Services.--(1) In addition to performing such
    other mandatory functions under this Act--
              (A) the Secretaries shall collect and analyze
            scientific, technical, legal, and economic information
            relating to aquaculture, including acreages, water use,
            production, marketing, culture techniques, and other
            relevant matters;
              (B) the Secretary shall--
                      (i) establish, within the Department of
                    Agriculture, a National Aquaculture Information
                    Center that shall serve as a repository for the
                    information generated under subparagraph (A)
                    and other provisions of this Act and shall, on
                    a request basis, make that information
                    available to the public.
                      (ii) arrange with foreign nations for the
                    exchange of information relating to aquaculture
                    and support a translation service, and
                      (iii) conduct a study of the extent to which
                    the United States aquaculture industry has
                    access to relevant Federal programs which
                    assist the agricultural sector by December 31,
                    1986;
              (C) the Secretary of Commerce shall conduct a study,
            and report to Congress thereon by December 31, 1987, to
            determine whether existing capture fisheries could be
            adversely affected by competition from products
            produced by commercial aquacultural enterprises and
            include in such study an assessment of any adverse
            effect, by species and by geographical region, on such
            fisheries and recommend measures to ameliorate any such
            effect; and
              (D) the Secretary of the Interior, in consultation
            with the Secretary of Commerce, shall undertake a
            study, and report to Congress thereon by December 31,
            1987, to identify exotic species introduced into the
            United States waters as a result of aquaculture
            activities, and to determine the potential benefits and
            impacts of the introduction of exotic species.
      (2) Any production information submitted to the Secretaries
    under paragraph (1)(A) shall be confidential and may only be
    disclosed if required under court order. The Secretaries shall
    preserve such confidentiality. The Secretaries may release or
    make public any information in any aggregate or summary form
    that does not directly disclose the identity, business
    transactions, or trade secrets of any person who submits such
    information
      [(d) Biennial Report.--The Secretary through the coordinating
    group and in consultation with the Secretary of Commerce and
    the Secretary of the Interior,, shall prepare on a biennial
    basis, and submit to Congress, a report on the status of
    aquaculture in the United States. Such report shall contain a
    description and evaluation of the actions undertaken with
    respect to the Plan during the reporting period, an explanation
    of any revisions made to the Plan during the reporting period,
    and such other comments and recommendations as the Secretary
    deems appropriate. The report required by this subsection shall
    be submitted to the Congress not late than February 1, 1988.]
      (d) Aquaculture Advisory Committee.--
              (1) In general.--Not later than 180 days after the
            date of enactment of the Farm, Food, and National
            Security Act of 2026, the Secretary shall establish an
            advisory committee, to be known as the Aquaculture
            Advisory Committee (referred to in this subsection as
            the ``Committee''), to advise the Secretary on--
                      (A) oversight of programs of the Department
                    and other members of the coordinating group to
                    support development of, and to advance,
                    aquaculture best practices using the best
                    available science, in consultation with farmers
                    and industry partners;
                      (B) providing technical assistance to
                    aquaculture farmers and businesses, including
                    technical assistance that pertains to
                    shellfish, algae, and land-based aquaculture
                    systems, using the best available science; and
                      (C) any other aspects of the implementation
                    of this Act.
              (2) Membership.--
                      (A) In general.--The Committee shall be
                    composed of 14 members, who are not officers or
                    employees of the Federal Government.
                      (B) Initial appointments.--The Secretary
                    shall appoint the members of the Committee not
                    later than 180 days after the date of enactment
                    of this section.
                      (C) Period of initial appointment;
                    vacancies.--
                              (i) In general.--Except as provided
                            in clause (ii), a member of the
                            Committee shall be appointed for a term
                            of 3 years.
                              (ii) Initial appointments.--Of the
                            members first appointed to the
                            Committee--
                                      (I) 5 of the members, as
                                    determined by the Secretary,
                                    shall be appointed for a term
                                    of 3 years;
                                      (II) 5 of the members, as
                                    determined by the Secretary,
                                    shall be appointed for a term
                                    of 2 years; and
                                      (III) 4 of the members, as
                                    determined by the Secretary,
                                    shall be appointed for a term
                                    of 1 year.
                              (iii) Vacancies.--Any vacancy in the
                            Committee--
                                      (I) shall not affect the
                                    powers of the Committee; and
                                      (II) shall be filled as soon
                                    as practicable in the same
                                    manner as the original
                                    appointment.
                      (D) Consecutive terms.--An initial appointee
                    of the Committee may serve an additional
                    consecutive term if the member is reappointed
                    by the Secretary.
              (3) Meetings.--
                      (A) Frequency.--The Committee shall meet not
                    fewer than 3 times per year.
                      (B) Initial meeting.--Not later than 180 days
                    after the date on which the members are
                    appointed under paragraph (2)(B), the Committee
                    shall hold the first meeting of the Committee.
              (4) Duties.--The Committee shall--
                      (A) develop recommendations and advise the
                    Secretary on aquaculture policies, initiatives,
                    and outreach administered by the Department;
                      (B) evaluate and review ongoing research and
                    extension activities relating to aquaculture
                    practices;
                      (C) identify new and existing barriers to
                    successful aquaculture practices; and
                      (D) provide additional assistance and advice
                    to the Secretary as appropriate.
              (5) Personnel matters.--
                      (A) Compensation.--A member of the Committee
                    shall serve without compensation.
                      (B) Travel expenses.--A member of the
                    Committee shall be allowed travel expenses,
                    including per diem in lieu of subsistence, in
                    accordance with section 5703 of title 5, United
                    States Code.
              (6) Termination.--
                      (A) In general.--Subject to subparagraph (B),
                    the Committee shall terminate on the date that
                    is 5 years after the date on which the members
                    are appointed under paragraph (2)(B).
                      (B) Extensions.--Before the date on which the
                    Committee terminates, the Secretary may renew
                    the Committee for 1 or more 2-year periods.
      (e) Annual Report.--Not later than 1 year after the date of
    the enactment of the Farm, Food, and National Security Act of
    2026, and each year thereafter, the Secretary, acting through
    the coordinating group and in consultation with the Secretary
    of Commerce and the Secretary of the Interior, shall prepare on
    an annual basis, and submit to Congress, a report on the status
    of aquaculture in the United States. Such report shall
    contain--
              (1) a description and evaluation of the actions
            undertaken with respect to the Plan during the
            reporting period;
              (2) an explanation of any revisions made to the Plan
            during the reporting period;
              (3) the results of the continuing assessment
            established under section 4(e);
              (4) an evaluation of the role each Federal department
            or agency has in supporting the aquaculture industry;
              (5) the total amount and value of expenditures of
            Federal departments or agencies on--
                      (A) aquaculture purchases;
                      (B) aquaculture promotion and outreach
                    supporting the aquaculture industry;
                      (C) grants made to the aquaculture industry;
                    and
                      (D) grants to facilitate aquaculture research
                    and the subject matter of such research;
              (6) a summary of the activities and recommendations
            of the Aquaculture Advisory Committee established under
            subsection (d);
              (7) a summary of the activities and recommendations
            of the coordinating group; and
              (8) such other comments and recommendations as the
            Secretary determines appropriate.

               *       *       *       *       *       *       *

                       authorizations for appropriations

      Sec. 10. For purposes of carrying out the provisions of this
    Act, there are authorized to be appropriated--
              (1) to the Department of Agriculture, $1,000,000 for
            each of fiscal years 1991 through [2023] 2031;
              (2) to the Department of Commerce, $1,000,000 for
            each of fiscal years 1991 through [2023] 2031; and
              (3) to the Department of Interior, $1,000,000 for
            each of fiscal years 1991 through [2023] 2031.
    Funds authorized by this section shall be in addition to, and
    not in lieu of, funds authorized by any other Act.

               *       *       *       *       *       *       *

                                  ----------

                NATIONAL AGRICULTURAL RESEARCH, EXTENSION, AND
                    TEACHING POLICY ACT AMENDMENTS OF 1985

               *       *       *       *       *       *       *

           TITLE XIV--AGRICULTURAL RESEARCH, EXTENSION, AND TEACHING

               *       *       *       *       *       *       *

      [authorization for appropriations for federal agricultural research
                                   facilities

      [Sec. 1431. There are authorized to be appropriated for each
    of the fiscal years 1991 through 2023, such sums as may be
    necessary for the planning, construction, acquisition,
    alternation, and repair of buildings and other public
    improvements, including the cost of acquiring or obtaining
    rights to use land, of or used by the Agricultural Research
    Service, except that--
              [(1) the cost of planning any one facility shall not
            exceed $500,000; and
              [(2) the total cost of any one facility shall not
            exceed $5,000,000.]

               *       *       *       *       *       *       *

                                  ----------

                                SMITH-LEVER ACT

               *       *       *       *       *       *       *

      Sec. 3. (a) there are hereby authorized to be appropriated
    for the purposes of this Act such sums as Congress may from
    time to time determine to be necessary.
      (b)(1) Out of such sums, each State and the Secretary of
    Agriculture shall be entitled to receive annually a sum of
    money equal to the sums available from Federal cooperative
    extension funds for the fiscal year 1962, and subject to the
    same requirements as to furnishing of equivalent sums by the
    State, except that amounts heretofore made available to the
    Secretary for allotment on the basis of special needs shall
    continue available for use on the same basis.
      (2) There is authorized to be appropriated for the fiscal
    year ending June 30, 1971, and for each fiscal year thereafter,
    for payment to the Virgin Islands and Guam, $100,000 each,
    which sums shall be in addition to the sums appropriated for
    the several States of the United States and Puerto Rico under
    the provisions of this section. The amount paid by the Federal
    Government to the Virgin Islands and Guam pursuant to this
    paragraph shall not exceed during any fiscal year, except the
    fiscal years ending, June 30, 1971, and June 30, 1972, when
    such amount may be used to pay the total cost of providing
    services pursuant to this Act, the amount available and
    budgeted for expenditure by the Virgin Islands and Guam for the
    purposes of this Act.
              (3) There are authorized to be appropriated for the
            fiscal year ending June 30, 1996, and for each fiscal
            year thereafter, for payment on behalf of the 1994
            Institutions (as defined in section 532 of the Equity
            in Educational Land-Grant Status Act of 1994), such
            sums as are necessary for the purposes set forth in
            section 2, and for 1994 Institutions to acquire, alter,
            repair, maintain, and operate relevant equipment
            necessary to strengthen the capacity of such 1994
            Institutions to achieve the purposes set forth in
            section 2. 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. Such
            sums shall be in addition to the sums appropriated for
            the several States and Puerto Rico, the Virgin Islands,
            and Guam under the provisions of this section. Such
            sums shall be distributed on the basis of a competitive
            application process to be developed and implemented by
            the Secretary and paid by the Secretary to 1994
            Institutions (in accordance with regulations that the
            Secretary may promulgate) and may be administered by
            the 1994 Institutions through cooperative agreements
            with colleges and universities eligible to receive
            funds under the Act of July 2, 1862 (12 Stat. 503,
            chapter 130; 7 U.S.C. 301 et seq.), or the Act of
            August 30, 1890 (26 Stat. 419, chapter 841; 7 U.S.C.
            321 et seq.), including Tuskegee University, located in
            any State.
              (4) Annual appropriation for hispanic-serving
            agricultural colleges and universities.--
                      (A) Authorization of appropriations.--There
                    are authorized to be appropriated to the
                    Secretary for payments to Hispanic-serving
                    agricultural colleges and universities (as
                    defined in section 1404 of the National
                    Agricultural Research, Extension, and Teaching
                    Policy Act of 1977 (7 U.S.C. 3103)) such sums
                    as are necessary to carry out this paragraph
                    for fiscal year 2008 and each fiscal year
                    thereafter, to remain available until expended.
                      (B) Additional amount.--Amounts made
                    available under this paragraph shall be in
                    addition to any other amounts made available
                    under this section to States, the Commonwealth
                    of Puerto Rico, Guam, or the United States
                    Virgin Islands.
                      (C) Administration.--Amounts made available
                    under this paragraph shall be--
                              (i) distributed on the basis of a
                            competitive application process to be
                            developed and implemented by the
                            Secretary;
                              (ii) paid by the Secretary to the
                            State institutions established in
                            accordance with the Act of July 2, 1862
                            (commonly known as the ``First Morrill
                            Act'') (7 U.S.C. 301 et seq.); and
                              (iii) administered by State
                            institutions through cooperative
                            agreements with the Hispanic-serving
                            agricultural colleges and universities
                            in the State in accordance with
                            regulations promulgated by the
                            Secretary.
      (c) Any sums made available by the Congress or further
    development of cooperative extension work in addition to those
    referred to in subsection (b) hereof shall be distributed as
    follows:
      (1) Four per centum of the sum so appropriated for each
    fiscal year shall be allotted to the Secretary of Agriculture
    for administrative, technical, and other services, and for
    coordinating the extension work of the Department and the
    several States, Territories and possessions.
      (2) Of the remainder so appropriated for each fiscal year 20
    per centum shall be paid to the several States in equal
    proportions, 40 per centum shall be paid to the several States
    in the proportion that the rural population of each bears to
    the total rural population of the several States as determined
    by the census, and the balance shall be paid to the several
    States in the proportion that the farm population of each bears
    to the total farm population of the several States as
    determined by the census. Any appropriation made hereunder
    shall be allotted in the first and succeeding years on the
    basis of the decennial census current at the time such
    appropriation is first made, and as to any increase, on the
    basis of decennial census current at the time such increase is
    first appropriated.
      (d) The Secretary of Agriculture shall receive such amounts
    as Congress shall determine for administration, technical, and
    other services and for coordinating the extension work of the
    Department and the several States, Territories, and
    possessions. A college or university eligible to receive funds
    under the Act of August 30, 1890 (7 U.S.C. 321 et seq.),
    including Tuskegee University, may compete for and receive
    funds directly from the Secretary of Agriculture. 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)) may compete for and receive funds directly
    from the Secretary of Agriculture for the Children, Youth, and
    Families at Risk funding program and the Federally Recognized
    Tribes Extension Program.
      (e) Matching Funds.--
              (1) Requirement.--Except as provided in paragraph (4)
            and subsection (f), no allotment shall be made to a
            State under subsection (b) or (c), and no payments from
            the allotment shall be made to a State, in excess of
            the amount that the State makes available out of non-
            Federal funds for cooperative extension work.
              (2) Failure to provide matching funds.--If a State
            fails to comply with the requirement to provide
            matching funds for a fiscal year under paragraph (1),
            the Secretary of Agriculture shall withhold from
            payment to the State for that fiscal year an amount
            equal to the difference between--
                      (A) the amount that would be allotted and
                    paid to the State under subsections (b) and (c)
                    (if the full amount of matching funds were
                    provided by the State); and
                      (B) the amount of matching funds actually
                    provided by the State.
              (3) Reapportionment.--
                      (A) In general.--The Secretary of Agriculture
                    shall reapportion amounts withheld under
                    paragraph (2) for a fiscal year among the
                    States satisfying the matching requirement for
                    that fiscal year.
                      (B) Matching requirement.--Any
                    reapportionment of funds under this paragraph
                    shall be subject to the matching requirement
                    specified in paragraph (1).
              (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.
      (f) Matching Funds Exception for 1994 Institutions and
    Hispanic-Serving Agricultural Colleges and Universities.--There
    shall be no matching requirement for funds made available to a
    1994 Institution or Hispanic-serving agricultural colleges and
    universities in accordance with paragraphs (3) and (4) of
    subsection (b).
      (g)(1) The Secretary of Agriculture may conduct educational,
    instructional, demonstration, and publication distribution
    programs and enter into cooperative agreements with private
    nonprofit and profit organizations and individuals to share the
    cost of such programs through contributions from private
    sources as provided in this subsection.
      (2) The Secretary may receive contributions under this
    subsection from private sources for the purposes described in
    paragraph (1) and provide matching funds in an amount not
    greater than 50 percent of such contributions.
      (h) Multistate Cooperative Extension Activities.--
              (1) In general.--Not less than the applicable
            percentage specified under paragraph (2) of the amounts
            that are paid to a State under subsections (b) and (c)
            during a fiscal year shall be expended by States for
            cooperative extension activities in which 2 or more
            States cooperate to solve problems that concern more
            than 1 State (referred to in this subsection as
            ``multistate activities'').
              (2) Applicable percentages.--
                      (A)  1997 expenditures on multistate
                    activities.--Of the Federal formula funds that
                    were paid to each State for fiscal year 1997
                    under subsections (b) and (c), the Secretary of
                    Agriculture shall determine the percentage that
                    the State expended for multistate activities.
                      (B) Required expenditures on multistate
                    activities.--Of the Federal formula funds that
                    are paid to each State for fiscal year 2000 and
                    each subsequent fiscal year under subsections
                    (b) and (c), the State shall expend for the
                    fiscal year for multistate activities a
                    percentage that is at least equal to the lesser
                    of--
                              (i) 25 percent; or
                              (ii) twice the percentage for the
                            State determined under subparagraph
                            (A).
                      (C) Reduction by secretary.--The Secretary
                    may reduce the minimum percentage required to
                    be expended for multistate activities under
                    subparagraph (B) by a State in a case of
                    hardship, infeasibility, or other similar
                    circumstance beyond the control of the State,
                    as determined by the Secretary.
              (3) Applicability.--This subsection does not apply to
            funds provided--
                      (A) by a State or local government pursuant
                    to a matching requirement;
                      (B) to a 1994 Institution (as defined in
                    section 532 of the Equity in Educational Land-
                    Grant Status Act of 1994 (Public Law 103-382; 7
                    U.S.C. 301 note)); or
                      (C) to the Commonwealth of Puerto Rico, the
                    Virgin Islands, or Guam.
      (i) Merit Review.--
              (1) Review required.--Effective October 1, 1999,
            extension activity carried out under subsection (h)
            shall be subject to merit review.
              (2) Other requirements.--An extension activity for
            which merit review is conducted under paragraph (1)
            shall be considered to have satisfied the requirements
            for review under section 103(e) of the Agricultural
            Research, Extension, and Education Reform Act of 1998.
      (j) Integration of Research and Extension.--Section 3(i) of
    the Hatch Act of 1887 (7 U.S.C. 361c(i)) shall apply to amounts
    made available to carry out this Act.

               *       *       *       *       *       *       *

                                  ----------

                               PUBLIC LAW 100-208

     AN ACT To designate the United States Livestock Insects Laboratory in
      Kerrville, Texas, as the ``Knipling-Bushland Research Laboratory''.

       Be it enacted by the Senate and House of Representatives of
    the United States of America in Congress assembled, That the
    United States Livestock Insects Laboratory of the United States
    Department of Agriculture's Agricultural Research Service,
    located in Kerrville, Texas, is hereby designated as the
    ``[Knipling-Bushland Research Laboratory] Knipling-Bushland
    Research Center''. Any reference to the United States Livestock
    Insects Laboratory in a law, map, regulation, document, record,
    or other paper of the United States shall be considered to be a
    reference to the ``[Knipling-Bushland Research Laboratory]
    Knipling-Bushland Research Center''.

                                  ----------

                               HATCH ACT OF 1887

               *       *       *       *       *       *       *

      Sec. 5. Sums available for allotment to the States under the
    terms of this Act, excluding the Multistate Research Fund,
    State Agricultural Experiment Stations, shall be paid to each
    State agricultural experiment station in equal quarterly
    payments beginning on the first day of October of each fiscal
    year upon vouchers approved by the Secretary of Agriculture.
    Each such station authorized to receive allotted funds shall
    have a chief administrative officer [known as a director] known
    as an experiment station director, and a treasurer [or other
    officer appointed by the government board of the station]. Such
    treasurer [or other officer] shall receive and account for all
    funds allotted to the State under the provisions of this Act
    and shall report, with the approval of the director to the
    Secretary of Agriculture on or before the first day of December
    of each year a detailed statement of the amount received under
    provisions of this Act during the preceding fiscal year, and of
    its disbursement on schedules prescribed by the Secretary of
    Agriculture. If any portion of the allotted moneys received by
    [the authorized receiving officer] the experiment station
    director of any State agricultural experiment station shall by
    any action or contingency be diminished, lost, or misapplied,
    it shall be replaced by the State concerned and until so
    replaced no subsequent appropriation shall be allotted or paid
    to such State.

               *       *       *       *       *       *       *

                                  ----------

                  COOPERATIVE FORESTRY ASSISTANCE ACT OF 1978

               *       *       *       *       *       *       *

    SEC. 2A. STATE-WIDE ASSESSMENT AND STRATEGIES FOR FOREST RESOURCES.

      (a) Assessment and Strategies for Forest Resources.--For a
    State to be eligible to receive funds under the authorities of
    this Act, the State forester of that State or equivalent State
    official shall develop and submit to the Secretary, not later
    than two years after the date of enactment of the Food,
    Conservation, and Energy Act of 2008, the following:
              (1) A State-wide assessment of forest resource
            conditions, including--
                      (A) the conditions and trends of forest
                    resources in that State;
                      (B) the threats to forest lands and resources
                    in that State consistent with the national
                    priorities specified in section 2(c);
                      (C) any areas or regions of that State that
                    are a priority; and
                      (D) any multi-State areas that are a regional
                    priority.
              (2) A long-term State-wide forest resource strategy,
            including--
                      (A) strategies for addressing threats to
                    forest resources in the State outlined in the
                    assessment required by paragraph (1); and
                      (B) a description of the resources necessary
                    for the State forester or equivalent State
                    official from all sources to address the State-
                    wide strategy.
      (b) Updating.--At such times as the Secretary determines to
    be necessary, the State forester or equivalent State official
    shall update and resubmit to the Secretary the State-wide
    assessment and State-wide strategy required by subsection (a).
      (c) Coordination.--In developing or updating the State-wide
    assessment and State-wide strategy required by subsection (a),
    the State Forester or equivalent State official shall
    coordinate with--
              (1) the State Forest Stewardship Coordinating
            Committee established for the State under section
            19(b);
              (2) the State wildlife agency, with respect to
            strategies contained in the State wildlife action
            plans;
              (3) the State Technical Committee;
              (4) applicable Federal land management agencies;
              (5) as feasible, appropriate military installations
            where the voluntary participation and management of
            private or State-owned or other public forestland is
            able to support, promote, and contribute to the
            missions of such installations; and
              (6) for purposes of the Forest Legacy Program under
            section 7, the State lead agency designated by the
            Governor.
      (d) Incorporation of Other Plans.--In developing or updating
    the State-wide assessment and State-wide strategy required by
    subsection (a), the State forester or equivalent State official
    shall incorporate any forest management plan of the State,
    including community wildfire protection plans and State
    wildlife action plans.
      (e) Sufficiency.--Once approved by the Secretary, a State-
    wide assessment and State-wide strategy developed under
    subsection (a) shall be deemed to be sufficient to satisfy all
    relevant State planning and assessment requirements under this
    Act.
      (f) Funding.--
              (1) Authorization of appropriations.--There are
            authorized to be appropriated to carry out this section
            up to $10,000,000 for each of fiscal years 2008 through
            [2023] 2031.
              (2) Additional funding sources.--In addition to the
            funds appropriated for a fiscal year pursuant to the
            authorization of appropriations in paragraph (1) [to
            carry out this section, the Secretary may use any other
            funds made available for planning under this Act to
            carry out this section, except that the total amount of
            combined funding used to carry out this section may not
            exceed $10,000,000 in any fiscal year.] the Secretary
            may use any other funds made available under this Act
            to develop and implement the State-wide assessment and
            State-wide strategy required by subsection (a), except
            that the total amount of combined funding used to
            develop and implement such assessment and strategy may
            not exceed $10,000,000 in any fiscal year.
      (g) Annual Report on Use of Funds.--The State forester or
    equivalent State official shall submit to the Secretary an
    annual report detailing how funds made available to the State
    under this Act are being used.

               *       *       *       *       *       *       *

    SEC. 7. FOREST LEGACY PROGRAM.

      (a) Establishment and Purpose.--The Secretary shall establish
    a program, to be known as the Forest Legacy Program, in
    cooperation with appropriate State, regional, and other units
    of government for the purposes of ascertaining and protecting
    environmentally important forest areas that are threatened by
    conversion to nonforest uses and, through the use of
    conservation easements and other mechanisms, for promoting
    forest land protection and other conservation opportunities.
    Such purposes shall also include the protection of important
    scenic, cultural, fish, wildlife, and recreational resources,
    riparian areas, and other ecological values.
      (b) State and Regional Forest Legacy Programs.--The Secretary
    shall exercise the authority under subsection (a) in
    conjunction with State or regional programs that the Secretary
    deems consistent with this section.
      (c) Interests in Land.--In addition to the authorities
    granted under section 6 of the Act of March 1, 1911 (16 U.S.C.
    515), and section 11(a) of the Department of Agriculture
    Organic Act of 1956 (7 U.S.C. 428a(a)), the Secretary may
    acquire from willing landowners lands and interests therein,
    including conservation easements and rights of public access,
    for Forest Legacy Program purposes. The Secretary shall not
    acquire conservation easements with title held in common
    ownership with any other entity.
      (d) Implementation.--
              (1) In general.--Lands and interests therein acquired
            under subsection (c) may be held in perpetuity for
            program and easement administration purposes as the
            Secretary may provide. In administering lands and
            interests therein under the program, the Secretary
            shall identify the environmental values to be protected
            by entry of the lands into the program, management
            activities which are planned and the manner in which
            they may affect the values identified, and obtain from
            the landowner other information determined appropriate
            for administration and management purposes.
              (2) Initial programs.--Not later than November 28,
            1991, the Secretary shall establish a regional program
            in furtherance of the Northern Forest Lands Study in
            the States of New York, New Hampshire, Vermont, and
            Maine under Public Law 100-446. The Secretary shall
            establish additional programs in each of the Northeast,
            Midwest, South, and Western regions of the United
            States, and the Pacific Northwest (including the State
            of Washington), on the preparation of an assessment of
            the need for such programs.
      (e) Eligibility.--Not later than November 28, 1991, and in
    consultation with State Forest Stewardship Coordinating
    Committees established under section 19(b) and similar regional
    organizations, the Secretary shall establish eligibility
    criteria for the designation of forest areas from which lands
    may be entered into the Forest Legacy Program and subsequently
    select such appropriate areas. To be eligible, such areas shall
    have significant environmental values or shall be threatened by
    present or future conversion to nonforest uses. Of land
    proposed to be included in the Forest Legacy Program, the
    Secretary shall give priority to lands which can be effectively
    protected and managed, and which have important scenic or
    recreational values; riparian areas; fish and wildlife values,
    including threatened and endangered species; or other
    ecological values.
      (f) Application.--For areas included in the Forest Legacy
    Program, an owner of lands or interests in lands who wishes to
    participate may prepare and submit an application at such time
    in such form and containing such information as the Secretary
    may prescribe. The Secretary shall give reasonable advance
    notice for the submission of all applications to the State
    forester, equivalent State official, or other appropriate State
    or regional natural resource management agency. If applications
    exceed the ability of the Secretary to fund them, priority
    shall be given to those forest areas having the greatest need
    for protection pursuant to the criteria described in subsection
    (e).
      (g) State Consent.--Where a State has not approved the
    acquisition of land under section 6 of the Act of March 1, 1911
    (16 U.S.C. 515), the Secretary shall not acquire lands or
    interests therein under authority granted by this section
    outside an area of that State designated as a part of a program
    established under subsection (b).
      (h) Forest Management Activities.--
              (1) In general.--Conservation easements or deed
            reservations acquired or reserved pursuant to this
            section may allow forest management activities,
            including timber management, on areas entered in the
            Forest Legacy Program insofar as the Secretary deems
            such activities consistent with the purposes of this
            section.
              (2) Assignment of responsibilities.--For Forest
            Legacy Program areas, the Secretary may delegate or
            assign management and enforcement responsibilities over
            federally owned lands and interests in lands only to
            another governmental entity.
      (i) Duties of Owners.--Under the terms of a conservation
    easement or other property interest acquired under subsection
    (b), the landowner shall be required to manage property in a
    manner that is consistent with the purposes for which the land
    was entered in the Forest Legacy Program and shall not convert
    such property to other uses. Hunting, fishing, hiking, and
    similar recreational uses shall not be considered inconsistent
    with the purposes of this program.
      (j) Compensation and Cost Sharing.--
              (1) Compensation.--The Secretary shall pay the fair
            market value of any property interest acquired under
            this section. Payments under this section shall be in
            accordance with Federal appraisal and acquisition
            standards and procedures.
              (2) Cost sharing.--In accordance with terms and
            conditions that the Secretary shall prescribe, costs
            for the acquisition of lands or interests therein or
            project costs shall be shared among participating
            entities including regional organizations, State and
            other governmental units, landowners, corporations, or
            private organizations. Such costs may include, but are
            not limited to, those associated with planning,
            administration, property acquisition, and property
            management. To the extent practicable, the Federal
            share of total program costs shall not exceed 75
            percent, including any in-kind contribution.
      (k) Easements.--
              (1) Reserved interest deeds.--As used in this
            section, the term ``conservation easement'' includes an
            easement utilizing a reserved interest deed where the
            grantee acquires all rights, title, and interests in a
            property, except those rights, title, and interests
            that may run with the land that are expressly reserved
            by a grantor.
              (2) Prohibitions on limitations.--Notwithstanding any
            provision of State law, no conservation easement held
            by the United States or its successors or assigns under
            this section shall be limited in duration or scope or
            be defeasible by--
                      (A) the conservation easement being in gross
                    or appurtenant;
                      (B) the management of the conservation
                    easement having been delegated or assigned to a
                    non-Federal entity;
                      (C) any requirement under State law for re-
                    recordation or renewal of the easement; or
                      (D) any future disestablishment of a Forest
                    Legacy Program area or other Federal project
                    for which the conservation easement was
                    originally acquired.
              (3) Construction.--Notwithstanding any provision of
            State law, conservation easements shall be construed to
            effect the Federal purposes for which they were
            acquired and, in interpreting their terms, there shall
            be no presumption favoring the conservation easement
            holder or fee owner.
      (l) Optional State Grants.--
              (1) In general.--The Secretary shall, at the request
            of a participating State, provide a grant to the State
            to carry out the Forest Legacy Program in the State.
              (2) Administration.--If a State elects to receive a
            grant under this subsection--
                      (A) the Secretary shall use a portion of the
                    funds made available under subsection (m), as
                    determined by the Secretary, to provide a grant
                    to the State; and
                      (B) the State shall use the grant to carry
                    out the Forest Legacy Program in the State,
                    including the acquisition by the State of lands
                    and interests in lands.
              (3) Transfer of forest legacy program land--
                      (A) In general.--Subject to any terms and
                    conditions that the Secretary may require
                    (including the requirements described in
                    subparagraph (B)), the Secretary may, at the
                    request of [the State of Vermont] a State,
                    convey to the State, by quitclaim deed, without
                    consideration, any land or interest in land
                    acquired in the State under the Forest Legacy
                    Program.
                      (B) Requirements.--In conveying land or an
                    interest in land under subparagraph (A), the
                    Secretary may require that--
                              (i) the deed conveying the land or
                            interest in land include requirements
                            for the management of the land in a
                            manner that--
                                      (I) conserves the land or
                                    interest in land; and
                                      (II) is consistent with any
                                    other Forest Legacy Program
                                    purposes for which the land or
                                    interest in land was acquired;
                              (ii) if the land or interest in land
                            is subsequently sold, exchanged, or
                            otherwise disposed of by the State [of
                            Vermont] involved, the State shall--
                                      (I) reimburse the Secretary
                                    in an amount that is based on
                                    the current market value of the
                                    land or interest in land in
                                    proportion to the amount of
                                    consideration paid by the
                                    United States for the land or
                                    interest in land; or
                                      (II) convey to the Secretary
                                    land or an interest in land
                                    that is equal in value to the
                                    land or interest in land
                                    conveyed.
                      (C) Disposition of funds.--Amounts received
                    by the Secretary under subparagraph (B)(ii)
                    shall be credited to the Wildland Fire
                    Management account, to remain available until
                    expended.
      (m) Appropriation.--There are authorized to be appropriated
    such sums as may be necessary to carry out this section.

               *       *       *       *       *       *       *

                       rural fire prevention and control

      Sec. 10. (a) Congress finds that--
              (1) significant accomplishments have been made by the
            Secretary and cooperating States in the prevention and
            control of fires on forest lands and on nonforested
            watersheds for more than fifty years;
              (2) progress is being made by the Secretary and
            cooperating States and rural communities in the
            protection of human lives, agricultural crops and
            livestock, property and other improvements, and natural
            resources from fires in rural areas;
              (3) notwithstanding the accomplishments and progress
            that have been made, fire prevention and control on
            rural lands and in rural communities are of continuing
            high priority to protect human lives, agricultural
            crops and livestock, property and other improvements,
            and natural resources;
              (4) the effective cooperative relationships between
            the Secretary and the States regarding fire prevention
            and control on rural lands and in rural communities
            should be retained and improved;
              (5) efforts in fire prevention and control in rural
            areas should be coordinated among Federal, State, and
            local agencies; and
              (6) in addition to providing assistance to State and
            local rural fire prevention and control programs, the
            Secretary should provide prompt and adequate assistance
            whenever a rural fire emergency overwhelms, or
            threatens to overwhelm, the firefighting capability of
            the affected State or rural area.
      (b) Notwithstanding the Federal Fire Prevention and Control
    Act of 1974, the Secretary is authorized, under whatever
    conditions the Secretary may prescribe to--
              (1) cooperate with State foresters or equivalent
            State officials in developing systems and methods for
            the prevention, control, suppression, and prescribed
            use of fires on rural lands and in rural communities
            that will protect human lives, agricultural crops and
            livestock, property and other improvements, and natural
            resources;
              (2) provide financial, technical, and related
            assistance to State foresters or equivalent State
            officials, and through them to other agencies and
            individuals, for the prevention, control, suppression,
            and prescribed use of fires on non-Federal forest lands
            and other non-Federal lands;
              (3) provide financial, technical, and related
            assistance to State foresters or equivalent State
            officials in cooperative efforts to organize, train,
            and equip local firefighting forces, including those of
            Indian tribes or other native groups, to prevent,
            control, and suppress fires threatening human lives,
            crops, livestock, farmsteads or other improvements,
            pastures, orchards, wildlife, rangeland, woodland, and
            other resources in rural areas. As used herein, the
            term ``rural areas'' shall have the meaning set out in
            the first clause of section 306(a)(7) of the
            Consolidated Farm and Rural Development Act; and
              (4) provide financial, technical, and related
            assistance to State foresters or equivalent State
            officials, and through them to other agencies and
            individuals, including rural volunteer fire
            departments, to conduct preparedness and mobilization
            activities, including training, equipping, and
            otherwise enabling State and local firefighting
            agencies to respond to requests for fire suppression
            assistance.
      (c) The Secretary, with the cooperation and assistance of the
    Administrator of General Services, shall encourage the use of
    excess personal property (within the meaning of the Federal
    Property and Administrative Services Act of 1949) by State and
    local fire forces receiving assistance under this section.
      (d) To promote maximum effectiveness and economy, the
    Secretary shall seek to coordinate the assistance the Secretary
    provides under this section with the assistance by the
    Secretary of Commerce under the Federal Fire Prevention and
    Control Act of 1974.
      (e)(1) There are hereby authorized to be appropriated
    annually such sums as may be needed to implement paragraphs
    (1), (2) and (3) of subsection (b) of this section.
      (2)(A) There are hereby authorized to be appropriated
    annually $70,000,000 to carry out subsection (b)(4). Of the
    total amount appropriated to carry out subsection (b)(4)--
              (i) one-half shall be available only for State
            foresters or equivalent State officials, and through
            them to other agencies and individuals, of which not
            less than $100,000 shall be made available to each
            State; and
              (ii) one-half shall be available only for rural
            volunteer fire departments.
      (B) The Federal share of the cost of any activity carried out
    with funds made available pursuant to this paragraph may not
    exceed 50 percent of the cost of that activity. The non-Federal
    share for such activity may be in the form of cash, services,
    or [in kind contributions.] in-kind contributions. The
    Secretary may waive the Federal share requirements of this
    subparagraph with respect to any such funds made available to
    rural volunteer fire departments.
      (f) There shall be established in the Treasury a special
    rural fire disaster fund that shall be immediately available to
    and used by the Secretary to supplement any other money
    available to carry out this section with respect to rural fire
    emergencies, as determined by the Secretary. The Secretary
    shall determine that State and local resources are fully used
    or will be fully used before expending money in the disaster
    fund to assist a State in which one or more rural fire
    emergencies exist. There are hereby authorized to be
    appropriated such sums as may be needed to establish and
    replenish the disaster fund established by this subsection.
      (g) As used in this section--
              (1) the term ``rural volunteer fire department''
            means [any organized, not for profit, fire protection
            organization] any fire protection organization that is
            organized as a not for profit organization or by the
            authority of a local government and that provides
            service primarily to a community or city with a
            population of [10,000] 15,000 or less or to a rural
            area, as defined by the Secretary, whose firefighting
            personnel is [80] 70 percent or more volunteer, and
            that is recognized as a fire department by the laws of
            the State; and
              (2) the term ``mobilization'' means any activity in
            which one firefighting organization assists another
            that has requested assistance.

               *       *       *       *       *       *       *

    SEC. 13A. STATE AND PRIVATE FOREST LANDSCAPE-SCALE RESTORATION PROGRAM.

      (a) Purpose.--The purpose of this section is to encourage
    collaborative, science-based restoration of priority forest
    landscapes.
      (b) Definitions.--In this section:
              (1) 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.
            5304).
              (2) Nonindustrial private forest land.--The term
            ``nonindustrial private forest land'' means land that--
                      (A) is rural, as determined by the Secretary;
                      (B) has existing tree cover or is suitable
                    for growing trees; and
                      (C) is owned by any private individual,
                    group, association, corporation, Indian tribe,
                    or other private legal entity.
              (3) State forest land.--The term ``State forest
            land'' means land that--
                      (A) is rural, as determined by the Secretary;
                    and
                      (B) is under State or local governmental
                    ownership and considered to be non-Federal
                    forest land.
      (c) Establishment.--The Secretary, in consultation with State
    foresters or appropriate State agencies, shall establish a
    competitive grant program to provide financial and technical
    assistance to encourage collaborative, science-based
    restoration of priority forest landscapes.
      (d) Eligibility.--To be eligible to receive a grant under
    this section, an applicant shall submit to the Secretary,
    through the State forester or appropriate State agency, a State
    and private forest landscape-scale restoration proposal based
    on a restoration strategy that--
              (1) is complete or substantially complete;
              (2) is for a multiyear period;
              (3) covers nonindustrial private forest land or State
            forest land;
              (4) is accessible by wood-processing infrastructure;
            and
              (5) is based on the best available science.
      (e) Plan Criteria.--A State and private forest landscape-
    scale restoration proposal submitted under this section shall
    include plans--
              (1) to reduce the risk of uncharacteristic wildfires;
              (2) to improve fish and wildlife habitats, including
            the habitats of threatened and endangered species;
              (3) to maintain or improve water quality and
            watershed function;
              (4) to mitigate invasive species, insect infestation,
            and disease;
              (5) to improve important forest ecosystems;
              (6) to measure ecological and economic benefits,
            including air quality and soil quality and
            productivity; and
              (7) to take other relevant actions, as determined by
            the Secretary.
      (f) Priorities.--In making grants under this section, the
    Secretary shall give priority to plans that--
              (1) further a statewide forest assessment and
            resource strategy;
              (2) promote cross boundary landscape collaboration;
            and
              (3) leverage public and private resources.
      (g) Collaboration and Consultation.--The Chief of the Forest
    Service, the Chief of the Natural Resources Conservation
    Service, and relevant stakeholders shall collaborate and
    consult on an ongoing basis regarding--
              (1) administration of the program established under
            this section; and
              (2) identification of other applicable resources for
            landscape-scale restoration.
      (h) Matching Funds Required.--As a condition of receiving a
    grant under this section, the Secretary shall require the
    recipient of the grant to provide funds or in-kind support from
    non-Federal sources in an amount that is at least equal to the
    amount of Federal funds.
      (i) Coordination and Proximity Encouraged.--In making grants
    under this section, the Secretary may consider coordination
    with and proximity to other landscape-scale projects on other
    land under the jurisdiction of the Secretary, the Secretary of
    the Interior, or a Governor of a State, including under--
              (1) the Collaborative Forest Landscape Restoration
            Program established under section 4003 of the Omnibus
            Public Land Management Act of 2009 (16 U.S.C. 7303);
              (2) landscape areas designated for insect and disease
            treatments under section 602 of the Healthy Forests
            Restoration Act of 2003 (16 U.S.C. 6591a);
              (3) good neighbor authority under section 19;
              (4) stewardship end result contracting projects
            authorized under section 604 of the Healthy Forests
            Restoration Act of 2003 (16 U.S.C. 6591c);
              (5) appropriate State-level programs; and
              (6) other relevant programs, as determined by the
            Secretary.
      (j) Regulations.--The Secretary shall promulgate such
    regulations as the Secretary determines necessary to carry out
    this section.
      (k) Report.--Not later than 3 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 on--
              (1) the status of development, execution, and
            administration of selected projects;
              (2) the accounting of program funding expenditures;
            and
              (3) specific accomplishments that have resulted from
            landscape-scale projects.
      (l) Fund.--
              (1) In general.--There is established in the Treasury
            a fund, to be known as the ``State and Private Forest
            Landscape-Scale Restoration Fund'' (referred to in this
            subsection as the ``Fund''), to be used by the
            Secretary to make grants under this section.
              (2) Contents.--The Fund shall consist of such amounts
            as are appropriated to the Fund under paragraph (3).
              (3) Authorization of appropriations.--There is
            authorized to be appropriated to the Fund $20,000,000
            for each fiscal year beginning with the first full
            fiscal year after the date of enactment of this
            subsection through fiscal year [2023] 2031, to remain
            available until expended.

               *       *       *       *       *       *       *

                                  ----------

                         NATIONAL FOREST FOUNDATION ACT

               *       *       *       *       *       *       *

                          TITLE IV--FOREST FOUNDATION

               *       *       *       *       *       *       *

    SEC. 405. ADMINISTRATIVE SERVICES AND SUPPORT.

      (a) Startup Funds.--For purposes of assisting the Foundation
    inestablishing an office and meeting initial administrative,
    project, and otherstartup expenses, the Secretary is authorized
    to provide to theFoundation $500,000, from funds appropriated
    pursuant to section410(a), per year for the two years beginning
    October 1, 1992. Such funds shall remain available to the
    Foundation untilthey are expended for authorized purposes.
      (b) Matching Funds.--In addition to the startup funds
    provided under subsection (a) of this section, during fiscal
    years 2016 through [2023] 2031, the Secretary is authorized to
    provide matching funds for administrative and project expenses
    incurred by the Foundation as authorized by section 410(b) of
    this title including reimbursement of expenses under section
    403, not to exceed then current Federal Government per diem
    rates.
      (c) Administrative Expenses.--At any time, the Secretary
    mayprovide the Foundation use of Department of Agriculture
    personnel,facilities, and equipment, with partial or no
    reimbursement, with such limitations and on such terms and
    conditions as the Secretaryshall establish.

               *       *       *       *       *       *       *

    SEC. 409. ACTIVITIES OF THE FOUNDATION AND UNITED STATES FOREST
                        SERVICE.

       [The activities] (a)  In General._The activities  of the
    Foundation authorized under the provisions of this Act shall be
    supplemental to and shall not preempt any authority or
    responsibility of the United States Forest Service under any
    other provision of law.
      (b) White Oak Restoration Fund.--
              (1) In general.--Funds described in paragraph (2)
            shall be made available for activities--
                      (A) on national forests that are approved by
                    the Secretary, acting through the Chief of the
                    Forest Service; and
                      (B) to--
                              (i) re-establish white oak forests
                            where appropriate;
                              (ii) improve management of existing
                            white oak forests to foster natural
                            regeneration of white oak;
                              (iii) improve and expand white oak
                            nursery stock; and
                              (iv) adapt and improve white oak
                            seedlings.
              (2) Fund.--The National Forest Foundation may accept
            gifts, devises, or bequests for the purposes of
            carrying out the activities specified in paragraph (1).
              (3) Summary.--Beginning 1 year after the date of the
            enactment of this section, the National Forest
            Foundation shall include in the budget justification
            materials submitted to Congress in support of the
            budget of each such Foundation for each fiscal year (as
            submitted with the budget of the President under
            section 1105(a) of title 31, United States Code) a
            summary of the activities carried out under paragraph
            (1) and the funds accepted under paragraph (2) that
            includes--
                      (A) the amount--
                              (i) accepted under paragraph (2) in
                            the preceding fiscal year; and
                              (ii) described in clause (i) that is
                            unobligated on the date of the report;
                            and
                      (B) a description of the activities under
                    paragraph (1) funded during the preceding
                    fiscal year.

    SEC. 410. AUTHORIZATION OF APPROPRIATIONS.

      (a) Start-Up Funds.--For the purposes of section 405 of this
    title, there are authorized to be appropriated $1,000,000.
      (b) Matching Funds.--For the purposes of section 405 of this
    title, there are authorized to be appropriated $3,000,000 for
    each of fiscal years 2016 through [2023] 2031 to the Secretary
    of Agriculture to be made available to the Foundation to match,
    on a one-for-one basis, private contributions made to the
    Foundation.

                                  ----------

        FOREST SERVICE FACILITY REALIGNMENT AND ENHANCEMENT ACT OF 2005

               *       *       *       *       *       *       *

                TITLE V--FOREST SERVICE FACILITY REALIGNMENT AND
                                  ENHANCEMENT

               *       *       *       *       *       *       *

    SEC. 503. AUTHORIZATION FOR CONVEYANCE OF FOREST SERVICE ADMINISTRATIVE
                        SITES.

      (a) Conveyances Authorized.--In the manner provided by this
    title, the Secretary may convey an administrative site, or an
    interest in an administrative site, that is under the
    jurisdiction of the Secretary.
      (b) Means of Conveyance.--The conveyance of an administrative
    site under this title may be made--
              (1) by sale;
              (2) by lease;
              (3) by exchange;
              (4) by a combination of sale and exchange; or
              (5) by such other means as the Secretary considers
            appropriate.
      (c) Size of Conveyance.--An administrative site or compound
    of administrative sites disposed of in a single conveyance
    under this title may not exceed 40 acres.
      (d) Certain Lands Excluded.--The following Federal land may
    not be conveyed under this title:
              (1) Any land within a unit of the National Forest
            System that is exclusively designated for natural area
            or recreational purposes.
              (2) Any land included within the National Wilderness
            Preservation System, the Wild and Scenic River System,
            or a National Monument.
              (3) Any land that the Secretary determines--
                      (A) is needed for resource management
                    purposes or to provide access to other land or
                    water;
                      (B) is surrounded by National Forest System
                    land or other publicly owned land, if
                    conveyance would not be in the public interest
                    due to the creation of a non-Federal inholding
                    that would preclude the efficient management of
                    the surrounding land; or
                      (C) would be in the public interest to
                    retain.
      (e) Congressional Notifications.--
              (1) Notice of anticipated use of authority.--As part
            of the annual budget justification documents provided
            to the Committee on Appropriations of the House of
            Representatives and the Committee on Appropriations of
            the Senate, the Secretary shall include--
                      (A) a list of the anticipated conveyances to
                    be made, including the anticipated revenue that
                    may be obtained, using the authority provided
                    by this title or other conveyance authorities
                    available to the Secretary;
                      (B) a discussion of the intended purposes of
                    any new revenue obtained using this authority
                    or other conveyance authorities available to
                    the Secretary, and a list of any individual
                    projects that exceed $500,000; and
                      (C) a presentation of accomplishments of
                    previous years using this authority or other
                    conveyance authorities available to the
                    Secretary.
              (2) Notice of changes to conveyance list.--If the
            Secretary proposes to convey an administrative site
            under this title or using other conveyance authorities
            available to the Secretary and the administrative site
            is not included on a list provided under paragraph
            (1)(A), the Secretary shall submit to the congressional
            committees specified in paragraph (3) written notice of
            the proposed conveyance, including the anticipated
            revenue that may be obtained from the conveyance.
              (3) Notice of use of authority.--At least once a
            year, the Secretary shall submit to the Committee on
            Agriculture, the Committee on Appropriations, and the
            Committee on Resources of the House of Representatives
            and the Committee on Agriculture, Nutrition, and
            Forestry, the Committee on Appropriations, and the
            Committee on Energy and Natural Resources of the Senate
            a report containing a description of all conveyances of
            National Forest System land made by the Secretary under
            this title or other conveyance authorities during the
            period covered by the report.
      (f) Duration of Authority.--The authority of the Secretary to
    initiate the conveyance of an administrative site under this
    title expires on [September 30, 2019] September 30, 2031.
      (g) Repeal of Pilot Conveyance Authority.--Effective
    September 30, 2006, section 329 of the Department of the
    Interior and Related Agencies Appropriations Act, 2002 (16
    U.S.C. 580d note; Public Law 107-63), is repealed.
    Notwithstanding the repeal of such section, the Secretary may
    complete the conveyance under such section of any
    administrative site whose conveyance was initiated under such
    section before that date.

               *       *       *       *       *       *       *

                                  ----------

               FOREST AND RANGELAND RENEWABLE RESOURCES RESEARCH
                                  ACT OF 1978

               *       *       *       *       *       *       *

                             research authorization

      Sec. 3. (a) The Secretary is authorized to conduct, support,
    and cooperate in investigations, experiments, tests, and other
    activities the Secretary deems necessary to obtain, analyze,
    develop, demonstrate, and disseminate scientific information
    about protecting, managing, and utilizing forest and rangeland
    renewable resources in rural, suburban, and urban areas. The
    activities conducted, supported, or cooperated in by the
    Secretary under this Act shall include, but not be limited to,
    the five major areas of renewable resource research identified
    in paragraphs (1) through (5) of this subsection.
              (1) Renewable resource management research shall
            include, as appropriate, research activities related to
            managing, reproducing, planting, and growing vegetation
            on forests and rangelands for timber, forage, water,
            fish and wildlife, esthetics, recreation, wilderness,
            energy production, activities related to energy
            conservation, and other purposes, including activities
            for encouraging improved reforestation of forest lands
            from which timber has been harvested; determining the
            role of forest and rangeland management in the
            productive use of forests and rangelands, in
            diversified agriculture, and in mining, transportation,
            and other industries; and developing alternatives for
            the management of forests and rangelands that will make
            possible the most effective use of their multiple
            products and services.
              (2) Renewable resource environment research shall
            include as appropriate, research activities related to
            understanding and managing surface and subsurface water
            flow, preventing and controlling erosion, and restoring
            damaged or disturbed soils on forest and rangeland
            watersheds; maintaining and improving wildlife and fish
            habitats; managing vegetation to reduce air and water
            pollution, provide amenities, and for other purposes;
            and understanding, predicting, and modifying weather,
            climatic and other environmental conditions that affect
            the protection and management of forests and
            rangelands.
              (3) Renewable resource protection research shall
            include, as appropriate, research activities related to
            protecting vegetation and other forest and rangeland
            resources, including threatened and endangered flora
            and fauna, as well as wood and wood products in storage
            or use, from fires, insects, diseases, noxious plants,
            animals, air pollutants, and other agents through
            biological, chemical, and mechanical control methods
            and systems; and protecting people, natural resources,
            and property from fires in rural areas.
              (4) Renewable resource utilization research shall
            include, as appropriate, research, marketing,
            distributing, and utilizing wood and other materials
            derived from forest and rangeland renewable resources;
            recycling and fully utilizing wood fiber; producing and
            conserving energy; and testing forest products,
            including necessary fieldwork associated therewith.
              (5) Renewable resource assessment research shall
            include, as appropriate, research activities related to
            developing and applying scientific knowledge and
            technology in support of the survey and analysis of
            forest and rangeland renewable resources described in
            subsection (b) of this section.
      (b)(1) To ensure the availability of adequate data and
    scientific information for development of the periodic
    Renewable Resource Assessment provided for in section 3 of the
    Forest and Rangeland Renewable Resources Planning Act of 1974,
    the Secretary of Agriculture shall make and keep current a
    comprehensive survey and analysis of the present and
    prospective conditions of and requirements for renewable
    resources of the forests and rangelands of the Untied States
    and of the supplies of such renewable resources, including a
    determination of the present and potential productivity of the
    land, and of such other facts as may be necessary to balance
    the demand for and supply of these renewable resources,
    benefits, and uses in meeting the needs of the people of the
    Untied State. The Secretary shall conduct the survey and
    analysis under such plans as the Secretary may determine to be
    fair and equitable, and cooperate with appropriate officials of
    each State and, either through them or directly, with private
    or other entities.
      (2) In implementing this subsection, the Secretary is
    authorized to develop and implement improved methods of survey
    and analysis of forest inventory information, for which
    purposes there are hereby authorized to be appropriated
    annually $10,000,000.
      (c)(1) The Secretary, acting through the United States Forest
    Services, shall establish not later than 180 days after the
    date of the enactment of this subsection a 10-year program
    (hereinafter in this subsection referred to as the ``Program'')
    to--
              (A) increase the frequency of forest inventories in
            matters that relate to atmospheric pollution and
            conduct such surveys as are necessary to monitor long-
            term trends in the health and productivity of domestic
            forest ecosystems;
              (B) determine the scope of the decline in the health
            and productivity of domestic forest ecosystems;
              (C) accelerate and expand existing research efforts
            (including basic forest ecosystem research) to evaluate
            the effects of atmospheric pollutants on forest
            ecosystems and their role in the decline in domestic
            forest health and productivity;
              (D) study the relationship between atmospheric
            pollution and other climatological, chemical, physical,
            and biological factors that may affect the health and
            productivity of domestic forest ecosystems;
              (E) develop recommendations for solving or mitigating
            problems related to the effects of atmospheric
            pollution on the health and productivity of domestic
            forest ecosystems;
              (F) foster cooperation among Federal, State, and
            private researchers and encourage the exchange of
            scientific information on the effects of atmosheric
            pollutants on forest ecosystems among the United
            States, Canada, European nations, and other nations;
              (G) support the long-term funding of research
            programs and related efforts to determine the causes of
            declines in the health and productivity of domestic
            forest ecosystems and the effects of atmospheric
            pollutants on the health and productivity of domestic
            forest ecosystems; and
              (H) enlarge the Eastern Hardwood Cooperative by
            devoting additional resources to field analysis of the
            response of hardwood species to atmospheric pollution,
            and other factors that may affect the health and
            productivity of these ecosystems.
      (2) The Secretary shall establish a committee to advise the
    Secretary in developing and carrying out the Program, which
    shall be composed of scientists with training and experience in
    various disciplines, including atmospheric, ecological, and
    biological sciences. Such scientists shall be selected from
    among individuals who are actively performing research for
    Federal or State agencies or for private industries,
    institutions, or organizations.
      (3) The Secretary shall coordinate the Program with existing
    research efforts of Federal and State agencies and private
    industries, institutions, or organizations.
      (4) The Secretary shall submit to the President and to
    Congress the following reports:
              (A) Not less than 30 days before establishing the
            Program, the Secretary shall submit an initial program
            report--
                      (i) discussing existing information about
                    declining health and productivity of forest
                    ecosystems on public and private lands in North
                    America and Europe;
                      (ii) outlining the findings and status of all
                    current research and monitoring efforts in
                    North America and Europe on the causes and
                    effects of atmospheric pollution on the health
                    and productivity of forest ecosystems;
                      (iii) describing the Program; and
                      (iv) estimating the cost of implementing the
                    Program for each fiscal year of its duration.
              (B) Not later than January 15, 1990, and January 15
            of each year thereafter, during which the Program is in
            operation following the year in which the initial
            program report is submitted, the Secretary shall submit
            an annual report--
                      (i) updating information about declining
                    health and productivity of forest ecosystems on
                    public and private lands in North America and
                    Europe;
                      (ii) updating the findings and status of all
                    current research and monitoring efforts in
                    North America and Europe on the causes and
                    effects of atmospheric pollution on the health
                    and productivity of forest ecosystems,
                    including efforts conducted under the Programs;
                      (iii) recommending additional research and
                    monitoring efforts to be undertaken under the
                    Program to determine the effects of atmospheric
                    pollution on the health and productivity of
                    domestic forest ecosystems; and
                      (iv) recommending methods for solving or
                    mitigating problems stemming from the effects
                    of atmospheric pollution on the health and
                    productivity of domestic forest ecosystems.
              (C) Not later than 10 years after the date on which
            the initial program report is submitted, the Secretary
            shall submit a final report--
                      (i) reviewing existing information about
                    declining health and productivity of forest
                    ecosystems on public and private lands in North
                    America and Europe;
                      (ii) reviewing the nature and findings of all
                    research and monitoring efforts conducted under
                    the Program and any other relevant research and
                    monitoring efforts related to the effects of
                    atmospheric pollution on forest ecosystem; and
                      (iii) making final recommendations for
                    solving or mitigating problems stemming from
                    the effects of atmospheric pollution on the
                    health and productivity of domestic forest
                    ecosystems.
      (d) High Priority Forestry and Rangeland Research and
    Education.--
              (1) In general.--The Secretary may conduct, support,
            and cooperate in forestry and rangeland research and
            education that is of the highest priority to the United
            States and to users of public and private forest land
            and rangeland in the United States.
              (2) Priorities.--The research and education
            priorities include the following:
                      (A) The biology of forest organisms and
                    rangeland organisms.
                      (B) Functional characteristics and cost-
                    effective management of forest and rangeland
                    ecosystems.
                      (C) Interactions between humans and forests
                    and rangeland.
                      (D) Wood and forage as a raw material.
                      (E) International trade, competition, and
                    cooperation.
              (3) Northeastern states research cooperative.--At the
            request of the Governor of the State of Maine, New
            Hampshire, New York, or Vermont, the Secretary may
            cooperate with the northeastern States of New
            Hampshire, New York, Maine, and Vermont, land-grant
            colleges and universities of those States, natural
            resources and forestry schools of those States, other
            Federal agencies, and other interested persons in those
            States to coordinate and improve ecological and
            economic research relating to agricultural research,
            extension, and education, including--
                      (A) research on ecosystem health, forest
                    management, product development, economics, and
                    related fields;
                      (B) research to assist those States and
                    landowners in those States to achieve
                    sustainable forest management;
                      (C) technology transfer to the wood products
                    industry of technologies that promote efficient
                    processing, pollution prevention, and energy
                    conservation;
                      (D) dissemination of existing and new
                    information to landowners, public and private
                    resource managers, State forest citizen
                    advisory committees, and the general public
                    through professional associations,
                    publications, and other information
                    clearinghouse activities; and
                      (E) analysis of strategies for the protection
                    of areas of outstanding ecological significance
                    or high biological diversity, and strategies
                    for the provision of important recreational
                    opportunities and traditional uses, including
                    strategies for areas identified through State
                    land conservation planning processes.
      (e) Forest Inventory and Analysis.--
              (1) Program required.--[In compliance]
                      (A) In general._In compliance  with other
                    applicable provisions of law, the Secretary
                    shall establish a program to inventory and
                    analyze, in a timely manner, public and private
                    forests and [their resources] the resources of
                    those forests, including forest carbon, in the
                    United States.
                      (B) Additional methods.--Under the program
                    under this subsection, the Secretary shall
                    carry out, as a data collection method--
                              (i) a national timber products output
                            survey; and
                              (ii) a national woodland owner
                            survey.
              (2) Annual state inventory.--
                      (A) In general.--Not later than the end of
                    each full fiscal year beginning after the date
                    of enactment of this subsection, the Secretary
                    shall prepare for each State, in cooperation
                    with the State forester for the State, an
                    inventory of forests and their resources in the
                    State.
                      (B) Sample plots.--For purposes of preparing
                    the inventory for a State, the Secretary shall
                    measure annually 20 percent of all sample plots
                    that are included in the inventory program for
                    that State.
                      (C) Compilation of inventory.--On completion
                    of the inventory for a year, the Secretary
                    shall make available to the public a
                    compilation of all data collected for that year
                    from measurements of sample plots as well as
                    any analysis made of the samples.
              (3)  5-year reports.--Not more often than every 5
            full fiscal years after the date of enactment of this
            subsection, the Secretary shall prepare, publish, and
            make available to the public a report, prepared in
            cooperation with State foresters, that--
                      (A) contains a description of each State
                    inventory of forests and their resources,
                    incorporating all sample plot measurements
                    conducted during the 5 years covered by the
                    report;
                      (B) displays and analyzes on a nationwide
                    basis the results of the annual reports
                    required by paragraph (2); and
                      (C) contains an analysis of forest health
                    conditions and trends over the previous 2
                    decades, including with respect to available
                    forest carbon data, with an emphasis on such
                    conditions and trends during the period
                    subsequent to the immediately preceding report
                    under this paragraph.
              (4) National [standards and definitions]
            consistency.--
                      (A) Standards and definitions.--To ensure
                    uniform and consistent data collection for all
                    forest land that is publicly or privately owned
                    and for each State, the Secretary shall
                    develop, in consultation with State foresters
                    and Federal land management agencies not under
                    the jurisdiction of the Secretary, and publish
                    national standards and definitions to be
                    applied in inventorying and analyzing forests
                    and their resources under this subsection. [The
                    standards]
                      (B) Inclusions._The standards described in
                    subparagraph (A)  shall include a core set of
                    variables to be measured on all sample plots
                    under paragraph (2) and a standard set of
                    tables to be included in the reports under
                    paragraph (3).
                      (C) Terminology.--The Secretary shall include
                    a clear description of the definition of
                    ``forest'' used for purposes of reporting data
                    from inventories and analyses of forests and
                    the resources of forests under this subsection
                    with--
                              (i) any data or report provided under
                            the program under this subsection;
                              (ii) Renewable Resource Assessments
                            prepared under section 3(a) of the
                            Forest and Rangeland Renewable
                            Resources Planning Act of 1974 (16
                            U.S.C. 1601(a)); and
                              (iii) any data or report provided to
                            an entity outside the United States.
              (5) Protection for private property rights.--The
            Secretary shall obtain authorization from property
            owners prior to collecting data from sample plots
            located on private property pursuant to paragraphs (2)
            and (3).
              (6) Strategic plan.--[Not later than 180 days after
            the date of enactment of this subsection,] In
            accordance with paragraph (7), the Secretary shall
            prepare and submit to Congress a strategic plan to
            implement and carry out this subsection, including the
            annual updates required by paragraph (2) and the
            reports required by paragraph (3), that shall describe
            in detail--
                      (A) the financial resources required to
                    implement and carry out this subsection,
                    including the identification of any resources
                    required in excess of the amounts provided for
                    forest inventorying and analysis in recent
                    appropriations Acts;
                      (B) the personnel necessary to implement and
                    carry out this subsection, including any
                    personnel in addition to personnel currently
                    performing inventorying and analysis functions;
                      (C) the organization and procedures necessary
                    to implement and carry out this subsection,
                    including proposed coordination with Federal
                    land management agencies and State foresters;
                      [(D) the schedules for annual sample plot
                    measurements in each State inventory required
                    by paragraph (2) within the first 5-year
                    interval after the date of enactment of this
                    subsection;
                      [(E) the core set of variables to be measured
                    in each sample plot under paragraph (2) and the
                    standard set of tables to be used in each State
                    and national report under paragraph (3); and]
                      (D) the organization and procedures necessary
                    to understand and report on changes in land
                    cover and use;
                      (E) the organization and procedures necessary
                    to sample and evaluate carbon-related data
                    variables, including soil carbon, collected
                    from forest inventory and analysis plots,
                    timber products output surveys, and national
                    woodland owner surveys to ensure that carbon
                    accounting information needs can be met; and
                      (F) the process for employing, in
                    coordination with the Secretary of Energy and
                    the Administrator of the National Aeronautics
                    and Space Administration, remote sensing,
                    global positioning systems, and other advanced
                    technologies to carry out this subsection, and
                    the subsequent use of the technologies.
              (7) Updates to strategic plan.--
                      (A) In general.--Not later than 180 days
                    after the date of enactment of this paragraph,
                    the Secretary shall prepare an update to the
                    strategic plan under paragraph (6) to include--
                              (i) a plan to implement nationally
                            consistent data collection protocols
                            and procedures to improve the
                            statistical precision of base program
                            estimates;
                              (ii) pathways to integrate and report
                            on status and trends in forest carbon
                            pools, including below-ground carbon;
                              (iii) plans, including the
                            identification of challenges, to
                            collaborate with other Federal
                            agencies, non-Federal partners, and the
                            private sector to integrate existing
                            nationally available data sets and best
                            available commercial technologies, such
                            as remote sensing, spatial analysis
                            techniques, and other new technologies;
                              (iv) a plan to increase transparency
                            and clarity in reporting in accordance
                            with paragraph (4)(C);
                              (v) a plan to expand current data
                            collection, further integrate remote
                            sensing technology, or both, to include
                            procedures to improve the statistical
                            precision of estimates at the sub-State
                            level;
                              (vi) a plan to expand current data
                            collection, further integrate remote
                            sensing technology, or both, to include
                            information on renewable biomass
                            supplies and carbon stocks at the
                            local, State, regional, and national
                            levels, including by ownership type;
                            and
                              (vii) such other matters as the
                            Secretary determines to be appropriate
                            based on recommendations of the Forest
                            Inventory and Analysis National User
                            Group.
                      (B) Submission.--Not later than 180 days
                    after the date of enactment of this paragraph,
                    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 the update to the
                    strategic plan prepared under subparagraph (A).
                      (C) Further updates.--Not later than 5 years
                    after the date on which the update is submitted
                    under subparagraph (B), and every 5 years
                    thereafter, the Secretary shall--
                              (i) prepare an additional update to
                            the strategic plan; and
                              (ii) submit the additional update to
                            the committees described in
                            subparagraph (B).
              (8) Accessibility.--The Secretary shall ensure that
            data collected under this subsection is--
                      (A) easily accessible to all public- and
                    private-sector entities; and
                      (B) collected and made accessible using means
                    that ensure the confidentiality, in accordance
                    with section 1770 of the Food Security Act of
                    1985 (7 U.S.C. 2276), of--
                              (i) plot locations;
                              (ii) nonaggregated data of woodland
                            owners; and
                              (iii) nonaggregated data from timber
                            product output survey.
              (9) Biennial compilations.--Biennially, the Secretary
            shall prepare and make publicly available a compilation
            of national forest inventory and analysis forest
            statistics, which shall be similar to the tables
            contained in the Renewable Resource Assessments
            prepared under section 3(a) of the Forest and Rangeland
            Renewable Resources Planning Act of 1974 (16 U.S.C.
            1601(a)), accompanied by relevant geospatial products.
              (10) External complex data requests.--
                      (A) In general.--The Secretary shall
                    establish an office, a data platform, or team
                    to process and respond to complex data requests
                    submitted by external organizations relating to
                    the program under this subsection.
                      (B) Fees.--
                              (i) In general.--To cover the costs
                            of processing of and responding to
                            complex data requests described in
                            subparagraph (A), the Secretary may
                            impose fees on external organizations
                            submitting the requests.
                              (ii) Fees collected.--Fees collected
                            under clause (i) may only be used for
                            the purposes described in such clause.
              (11) Reports.--Each year, the Secretary shall publish
            as part of the forest inventory and analysis business
            report a detailed description of the progress of the
            Secretary in implementing the programmatic elements of
            the strategic plan described in paragraph (6),
            including--
                      (A) the costs and priorities of the strategic
                    plan; and
                      (B) how the program under this subsection
                    leverages new technology, improves and
                    standardizes collection protocols, and
                    increases workforce capacity.

               *       *       *       *       *       *       *

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                     INFRASTRUCTURE INVESTMENT AND JOBS ACT

               *       *       *       *       *       *       *

                              DIVISION D--ENERGY

               *       *       *       *       *       *       *

             TITLE VIII--NATURAL RESOURCES-RELATED INFRASTRUCTURE,
                WILDFIRE MANAGEMENT, AND ECOSYSTEM RESTORATION

               *       *       *       *       *       *       *

    SEC. 40806. ESTABLISHMENT OF FUEL BREAKS IN FORESTS AND OTHER WILDLAND
                        VEGETATION.

      (a) Definition of Secretary Concerned.--In this section, the
    term ``Secretary concerned'' means--
              (1) the Secretary of Agriculture, with respect to
            National Forest System land; and
              (2) the Secretary of the Interior, with respect to
            public lands (as defined in section 103 of the Federal
            Land Policy and Management Act of 1976 (43 U.S.C.
            1702)) administered by the Bureau of Land Management.
      (b) Categorical Exclusion Established.--Forest management
    activities described in subsection (c) are a category of
    actions designated as being categorically excluded from the
    preparation of an environmental assessment or an environmental
    impact statement under the National Environmental Policy Act of
    1969 (42 U.S.C. 4321 et seq.) if the categorical exclusion is
    documented through a supporting record and decision memorandum.
      (c) Forest Management Activities Designated for Categorical
    Exclusion.--
              (1) In general.--The category of forest management
            activities designated under subsection (b) for a
            categorical exclusion are forest management activities
            described in paragraph (2) that are carried out by the
            Secretary concerned on public lands (as defined in
            section 103 of the Federal Land Policy and Management
            Act of 1976 (43 U.S.C. 1702)) administered by the
            Bureau of Land Management or National Forest System
            land the primary purpose of which is to establish and
            maintain linear fuel breaks that are--
                      (A) up to 1,000 feet in width contiguous with
                    or incorporating existing linear features, such
                    as roads, water infrastructure, transmission
                    and distribution lines, and pipelines of any
                    length on Federal land; and
                      (B) intended to reduce the risk of
                    uncharacteristic wildfire on Federal land or
                    catastrophic wildfire for an adjacent at-risk
                    community.
              (2) Activities.--Subject to paragraph (3), the forest
            management activities that may be carried out pursuant
            to the categorical exclusion established under
            subsection (b) are--
                      (A) mowing or masticating;
                      (B) thinning by manual and mechanical
                    cutting;
                      (C) piling, yarding, and removal of slash or
                    hazardous fuels;
                      (D) selling of vegetation products, including
                    timber, firewood, biomass, slash, and
                    fenceposts;
                      (E) targeted grazing;
                      (F) application of--
                              (i) pesticide;
                              (ii) biopesticide; or
                              (iii) herbicide;
                      (G) seeding of native species;
                      (H) controlled burns and broadcast burning;
                    and
                      (I) burning of piles, including jackpot
                    piles.
              (3) Excluded activities.--A forest management
            activity described in paragraph (2) may not be carried
            out pursuant to the categorical exclusion established
            under subsection (b) if the activity is conducted--
                      (A) in a component of the National Wilderness
                    Preservation System;
                      (B) on Federal land on which the removal of
                    vegetation is prohibited or restricted by Act
                    of Congress, Presidential proclamation
                    (including the applicable implementation plan),
                    or regulation;
                      (C) in a wilderness study area; or
                      (D) in an area in which carrying out the
                    activity would be inconsistent with the
                    applicable land management plan or resource
                    management plan.
              (4) Extraordinary circumstances.--The Secretary
            concerned shall apply the extraordinary circumstances
            procedures under section 220.6 of title 36, Code of
            Federal Regulations (or a successor regulation), in
            determining whether to use a categorical exclusion
            under subsection (b).
      (d) Acreage and Location Limitations.--Treatments of
    vegetation in linear fuel breaks covered by the categorical
    exclusion established under subsection (b)--
              (1) may not contain treatment units in excess of
            [3,000 acres] 10,000 acres;
              (2) shall be located primarily in--
                      (A) the wildland-urban interface or a public
                    drinking water source area;
                      (B) if located outside the wildland-urban
                    interface or a public drinking water source
                    area, an area within Condition Class 2 or 3 in
                    Fire Regime Group I, II, or III that contains
                    very high wildfire hazard potential; or
                      (C) an insect or disease area designated by
                    the Secretary concerned as of the date of
                    enactment of this Act; and
              (3) shall consider the best available scientific
            information.
      (e) Roads.--
              (1) Permanent roads.--A project under this section
            shall not include the establishment of permanent roads.
              (2) Existing roads.--The Secretary concerned may
            carry out necessary maintenance and repairs on existing
            permanent roads for the purposes of this section.
              (3) Temporary roads.--The Secretary concerned shall
            decommission any temporary road constructed under a
            project under this section not later than 3 years after
            the date on which the project is completed.
      (f) Public Collaboration.--To encourage meaningful public
    participation during the preparation of a project under this
    section, the Secretary concerned shall facilitate, during the
    preparation of each project--
              (1) collaboration among State and local governments
            and Indian Tribes; and
              (2) participation of interested persons.

               *       *       *       *       *       *       *

    SEC. 40808. JOINT CHIEFS LANDSCAPE RESTORATION PARTNERSHIP PROGRAM.

      (a) Definitions.--In this section:
              (1) Chiefs.--The term ``Chiefs'' means the Chief of
            the Forest Service and the Chief of the Natural
            Resources Conservation Service.
              (2) Eligible activity.--The term ``eligible
            activity'' means an activity--
                      (A) to reduce the risk of wildfire;
                      (B) to protect water quality and supply; or
                      (C) to improve wildlife habitat for at-risk
                    species.
              (3) Program.--The term ``Program'' means the Joint
            Chiefs Landscape Restoration Partnership program
            established under subsection (b)(1).
              (4) Secretary.--The term ``Secretary'' means the
            Secretary of Agriculture.
              (5) Wildland-urban interface.--The term ``wildland-
            urban interface'' has the meaning given the term in
            section 101 of the Healthy Forests Restoration Act of
            2003 (16 U.S.C. 6511).
      (b) Establishment.--
              (1) In general.--The Secretary shall establish a
            Joint Chiefs Landscape Restoration Partnership program
            to improve the health and resilience of forest
            landscapes across National Forest System land and
            State, Tribal, and private land.
              (2) Administration.--The Secretary shall administer
            the Program by coordinating eligible activities
            conducted on National Forest System land and State,
            Tribal, or private land across a forest landscape to
            improve the health and resilience of the forest
            landscape by--
                      (A) assisting producers and landowners in
                    implementing eligible activities on eligible
                    private or Tribal land using the applicable
                    programs and authorities administered by the
                    Chief of the Natural Resources Conservation
                    Service under title XII of the Food Security
                    Act of 1985 (16 U.S.C. 3801 et seq.), not
                    including the conservation reserve program
                    established under subchapter B of chapter 1 of
                    subtitle D of that title (16 U.S.C. 3831 et
                    seq.); and
                      (B) conducting eligible activities on
                    National Forest System land or assisting
                    landowners in implementing eligible activities
                    on State, Tribal, or private land using the
                    applicable programs and authorities
                    administered by the Chief of the Forest
                    Service.
      (c) Selection of Eligible Activities.--The appropriate
    Regional Forester and State Conservationist shall jointly
    submit to the Chiefs on an annual basis proposals for eligible
    activities under the Program.
      (d) Evaluation Criteria.--In evaluating and selecting
    proposals submitted under subsection (c), the Chiefs shall
    consider--
              (1) criteria including whether the proposal--
                      (A) reduces wildfire risk in a municipal
                    watershed or the wildland-urban interface;
                      (B) was developed through a collaborative
                    process with participation from diverse
                    stakeholders;
                      (C) increases forest workforce capacity or
                    forest business infrastructure and development;
                      (D) leverages existing authorities and non-
                    Federal funding;
                      (E) provides measurable outcomes; or
                      (F) supports established State and regional
                    priorities; and
              (2) such other criteria relating to the merits of the
            proposals as the Chiefs determine to be appropriate.
      (e) Outreach.--The Secretary shall provide--
              (1) public notice on the websites of the Forest
            Service and the Natural Resources Conservation Service
            describing--
                      (A) the solicitation of proposals under
                    subsection (c); and
                      (B) the criteria for selecting proposals in
                    accordance with subsection (d); and
              (2) information relating to the Program and
            activities funded under the Program to States, Indian
            Tribes, units of local government, and private
            landowners.
      (f) Exclusions.--An eligible activity may not be carried out
    under the Program--
              (1) in a wilderness area or designated wilderness
            study area;
              (2) in an inventoried roadless area;
              (3) on any Federal land on which, by Act of Congress
            or Presidential proclamation, the removal of vegetation
            is restricted or prohibited; or
              (4) in an area in which the eligible activity would
            be inconsistent with the applicable land and resource
            management plan.
      (g) Accountability.--
              (1) Initial report.--Not later than 1 year after the
            date of enactment of this Act, the Secretary shall
            submit to Congress a report providing recommendations
            to Congress relating to the Program, including a review
            of--
                      (A) funding mechanisms for the Program;
                      (B) staff capacity to carry out the Program;
                      (C) privacy laws applicable to the Program;
                      (D) data collection under the Program;
                      (E) monitoring and outcomes under the
                    Program; and
                      (F) such other matters as the Secretary
                    considers to be appropriate.
              (2) Additional reports.--For each of fiscal years
            2022 and 2023 and at least once every 2 fiscal years
            thereafter, the Chiefs shall submit to the Committee on
            Agriculture, Nutrition, and Forestry and the Committee
            on Appropriations of the Senate and the Committee on
            Agriculture and the Committee on Appropriations of the
            House of Representatives a report describing projects
            for which funding is provided under the Program,
            including the status and outcomes of those projects.
      (h) Funding.--
              (1) Authorization of appropriations.--There is
            authorized to be appropriated to the Secretary to carry
            out the Program $90,000,000 for each of fiscal years
            2022 [and 2023] through 2031.
              (2) Additional funds.--In addition to the funds
            described in paragraph (1), the Secretary may obligate
            available funds from accounts used to carry out the
            existing Joint Chiefs' Landscape Restoration
            Partnership prior to the date of enactment of this Act
            to carry out the Program.
              (3) Duration of availability.--Funds made available
            under paragraph (1) shall remain available until
            expended.
              (4) Distribution of funds.--Of the funds made
            available under paragraph (1)--
                      (A) not less than 40 percent shall be
                    allocated to carry out eligible activities
                    through the Natural Resources Conservation
                    Service;
                      (B) not less than 40 percent shall be
                    allocated to carry out eligible activities
                    through the Forest Service; and
                      (C) the remaining funds shall be allocated by
                    the Chiefs to the Natural Resources
                    Conservation Service or the Forest Service--
                              (i) to carry out eligible activities;
                            or
                              (ii) for other purposes, such as
                            technical assistance, project
                            development, or local capacity
                            building.

               *       *       *       *       *       *       *

                                  ----------

               FOREST AND RANGELAND RENEWABLE RESOURCES PLANNING
                                  ACT OF 1974

               *       *       *       *       *       *       *

      Sec. 6. National Forest System Resource Planning.--(a) As a
    part of the Program provided for by section 4 of this Act, the
    Secretary shall develop, maintain, and, as appropriate, revise
    land and resource management plans for units of the National
    Forest System, coordinated with the land and resource
    management planning processes of State and local governments
    and other Federal agencies.
      (b) In the development and maintenance of land management
    plans for use on units of the National Forest System, the
    Secretary shall use a systematic interdisciplinary approach to
    achieve integrated consideration of physical, biological,
    economic, and other sciences.
      (c) The Secretary shall begin to incorporate the standards
    and guidelines required by this section in plans for units of
    the National Forest System as soon as practicable after
    enactment of this subsection and shall attempt to complete such
    incorporation for all such units by no later than September 30,
    1985. The Secretary shall report to the Congress on the
    progress of such incorporation in the annual report required by
    section 8(c) of this Act. Until such time as a unit of the
    National Forest System is managed under plans developed in
    accordance with this Act, the management of such unit may
    continue under existing land and resource management plans.
      (d) Public Participation and Consultation.--
              (1) In general.--The Secretary shall provide for
            public participation in the development, review, and
            revision of land management plans including, but not
            limited to, making the plans or revisions available to
            the public at convenient locations in the vicinity of
            the affected unit for a period of at least three months
            before final adoption, during which period the
            Secretary shall publicize and hold public meetings or
            comparable processes at locations that foster public
            participation in the review of such plans or revisions.
              [(2) No additional consultation required after
            approval of land management plans.--
                      [(A) In general.--Except as provided in
                    subparagraph (B), notwithstanding any other
                    provision of law, the Secretary shall not be
                    required to engage in consultation under this
                    section or any other provision of law
                    (including section 7 of Public Law 93-205 (16
                    U.S.C. 1536) and section 402.16 of title 50,
                    Code of Federal Regulations (or a successor
                    regulation)) with respect to--
                              [(i) the listing of a species as
                            threatened or endangered, or a
                            designation of critical habitat
                            pursuant to Public Law 93-205 (16
                            U.S.C. 1531 et seq.), if a land
                            management plan has been adopted by the
                            Secretary as of the date of listing or
                            designation; and
                              [(ii) any provision of a land
                            management plan adopted as described in
                            clause (i).
                      [(B) Exception.--Subparagraph (A) shall not
                    apply if--
                              [(i) 15 years have passed since the
                            date on which the Secretary adopted the
                            land management plan described in
                            clause (i) of that subparagraph; and
                              [(ii) 5 years have passed since the
                            date of enactment of this section or
                            the date of the listing of a species as
                            threatened or endangered for a species
                            known to occur on the unit or the
                            designation of critical habitat within
                            the unit as described in clause (i) of
                            that subparagraph, whichever is later.
                      [(C) Effect of paragraph.--Nothing in this
                    paragraph affects any applicable requirement of
                    the Secretary to consult with the head of any
                    other Federal department or agency--
                              [(i) regarding any project carried
                            out, or proposed to be carried out, to
                            implement a land management plan
                            pursuant to Public Law 93-205 (16
                            U.S.C. 1531 et seq.), including any
                            requirement to consult regarding the
                            consideration of cumulative impacts of
                            completed, ongoing, and planned
                            projects; or
                              [(ii) with respect to--
                                      [(I) the development of a
                                    modification to a land
                                    management plan; or
                                      [(II) an amendment or
                                    revision to a land management
                                    plan in accordance with
                                    paragraph (4) or (5) of
                                    subsection (f).]
              (2) No additional consultation required under certain
            circumstances.--Notwithstanding any other provision of
            law, the Secretary shall not be required to reinitiate
            consultation under section 7(a)(2) of the Endangered
            Species Act of 1973 (16 U.S.C. 1536(a)(2)) or section
            402.16 of title 50, Code of Federal Regulations (or a
            successor regulation), on a land management plan
            approved, amended, or revised under this section when--
                      (A) a new species is listed or critical
                    habitat is designated under the Endangered
                    Species Act of 1973 (16 U.S.C. 1531 et seq.);
                    or
                      (B) new information reveals effects of the
                    land management plan that may affect a species
                    listed or critical habitat designated under
                    that Act in a manner or to an extent not
                    previously considered.
      (e) In developing, maintaining, and revising plans for units
    of the National Forest System pursuant to this section, the
    Secretary shall assure that such plans--
              (1) provide for multiple use and sustained yield of
            the products and services obtained therefrom in
            accordance with the Multiple-Use Sustained-Yield Act of
            1960, and, in particular, include coordination of
            outdoor recreation, range, timber, watershed, wildlife
            and fish, and wilderness; and
              (2) determine forest management systems, harvesting
            levels, and procedures in the light of all of the uses
            set forth in subsection (c)(1), the definition of the
            terms ``multiple use'' and ``sustained yield'' as
            provided in the Multiple-Use Sustained-Yield Act of
            1960, and the availability of lands and their
            suitability for resources management.
      (f) Plans developed in accordance with this section shall--
              (1) form one integrated plan for each unit of the
            National Forest System, incorporating in one document
            or one set of documents, available to the public at
            convenient locations, all of the features required by
            this section;
              (2) be embodied in appropriate written material,
            including maps and other descriptive documents,
            reflecting proposed and possible actions, including the
            planned timber sale program and the proportion of
            probable methods of timber harvest within the unit
            necessary to fulfill the plan;
              (3) be prepared by an interdisciplinary team. Each
            team shall prepare its plan based on inventories of the
            applicable resources of the forest;
              (4) be amended in any manner whatsoever after final
            adoption after public notice, and, if such amendment
            would result in a significant change in such plan, in
            accordance with the provisions of subsections (e) and
            (f) of this section and public involvement comparable
            to that required by subsection (d) of this section; and
              (5) be revised (A) from time to time when the
            Secretary finds conditions in a unit have significantly
            changed, but at least every fifteen years, and (B) in
            accordance with the provisions of subsections (e) and
            (f) of this section and public involvement comparable
            to that required by subsection (d) of this section.
      (g) As soon as practicable, but not later than two years
    after enactment of this subsection, the Secretary shall in
    accordance with the procedures set forth in section 553 of
    title 5, United States Code, promulgate regulations, under the
    principles of the Multiple-Use Sustained-Yield Act of 1960,
    that set out the process for the development and revision of
    the land management plans, and the guidelines and standards
    prescribed by this subsection. The regulations shall include,
    but not be limited to--
              (1) specifying procedures to insure that land
            management plans are prepared in accordance with the
            National Environmental Policy Act of 1969, including,
            but not limited to, direction on when and for what
            plans an environmental impact statement required under
            section 102(2)(C) of that Act shall be prepared;
              (2) specifying guidelines which--
                      (A) require the identification of the
                    suitability of lands for resource management;
                      (B) provide for obtaining inventory data on
                    the various renewable resources, and soil and
                    water, including pertinent maps, graphic
                    material, and explanatory aids; and
                      (C) provide for methods to identify special
                    conditions or situations involving hazards to
                    the various resources and their relationship to
                    alternative activities:
              (3) specifying guidelines for land management plans
            developed to achieve the goals of the Program which--
                      (A) insure consideration of the economic and
                    environmental aspects of various systems of
                    renewable resource management, including the
                    related systems of silviculture and protection
                    of forest resources, to provide for outdoor
                    recreation (including wilderness), range,
                    timber, watershed, wildlife, and and fish;
                      (B) provide for diversity of plant and animal
                    communities based on the suitability and
                    capability of the specific land area in order
                    to meet overall multiple-use objectives, and
                    within the multiple-use objectives of a land
                    management plan adopted pursuant to this
                    section, provide, where appropriate, to the
                    degree practicable, for steps to be taken to
                    preserve the diversity of tree species similar
                    to that existing in the region controlled by
                    the plan;
                      (C) insure research on and (based on
                    continuous monitoring and assessment in the
                    field) evaluation of the effects of each
                    management system to the end that it will not
                    produce substantial and permanent impairment of
                    the productivity of the land;
                      (D) permit increases in harvest levels based
                    on intensified management practices, such as
                    reforestation, thinning, and tree improvement
                    if (i) such practices justify increasing the
                    harvests in accordance with the Multiple-Use
                    Sustained-Yield Act of 1960, and (ii) such
                    harvest levels are decreased at the end of each
                    planning period if such practices cannot be
                    successfully implemented or funds are not
                    received to permit such practices to continue
                    substantially as planned;
                      (E) insure that timber will be harvested from
                    National Forest System lands only where--
                              (i) soil, slope, or other watersheld
                            conditions will not be irreversibly
                            damaged;
                              (ii) there is assurance that such
                            lands can be adequately restocked
                            within five years after harvest;
                              (iii) protection is provided for
                            streams, streambanks, shorelines,
                            lakes, wetlands, and other bodies of
                            water from detrimental changes in water
                            temperatures, blockages of water
                            courses, and deposits of sediment,
                            where harvests are likely to seriously
                            and adversely affect water conditions
                            or fish habitat; and
                              (iv) the harvesting system to be used
                            is not selected primarily because it
                            will give the greatest dollar return or
                            the greatest unit output of timber; and
                      (F) insure that clearcutting, seed tree
                    cutting, shelterwood cutting, and other cuts
                    designed to regenerate an evenaged stand of
                    timber will be used as a cutting method on
                    National Forest System lands only where--
                              (i) for clearcutting, it is
                            determined to be the optimum method,
                            and for other such cuts it is
                            determined to be appropriate, to meet
                            the objectives and requirements of the
                            relevant land management plan;
                              (ii) the interdisciplinary review as
                            determined by the Secretary has been
                            completed and the potential
                            environmental, biological, esthetic,
                            engineering, and economic impacts on
                            each advertised sale area have been
                            assessed, as well as the consistency of
                            the sale with the multiple use of the
                            general area;
                              (iii) cut blocks, patches, or strips
                            are shaped and blended to the extent
                            practicable with the natural terrain;
                              (iv) there are established according
                            to geographic areas, forest types, or
                            other suitable classifications the
                            maximum size limits for areas to be cut
                            in one harvest operation, including
                            provision to exceed the established
                            limits after appropriate public notice
                            and review by the responsible Forest
                            Service officer one level above the
                            Forest Service officer who normally
                            would approve the harvest proposal:
                            Provided, That such limits shall not
                            apply to the size of areas harvested as
                            a result of natural catastrophic
                            conditions such as fire, insect and
                            disease attack, or windstorm; and
                              (v) such cuts are carried out in a
                            manner consistent with the protection
                            of soil, watersheld, fish, wildlife,
                            recreation, and esthetic resources, and
                            the regeneration of the timber
                            resource.
      (h)(1) In carrying out the purposes of subsection (g) of this
    section, the Secretary shall appoint a committee of scientists
    who are not officers or employees of the Forest Service. The
    committee shall provide scientific and technical advice and
    counsel on proposed guidelines and procedures to assure that an
    effective interdiscipinary approach is proposed and adopted.
    The committee shall terminate upon promulgation of the
    regulations, but the Secretary may, from time to time, appoint
    similar committees when considering revisions of the
    regulations. The views of the committees shall be included in
    the public information supplied when the regulations are
    proposed for adoption.
      (2) Clerical and technical assistance, as may be necessary to
    discharge the duties of the committee, shall be provided from
    the personnel of the Department of Agriculture.
      (3) While attending meetings of the committee, the members
    shall be entitled to receive compensation at a rate of $100 per
    diem, including traveltime, and while away from their homes or
    regular places of business they may be allowed travel expenses,
    including per diem in lieu of subsistence, as authorized by
    section 5703 of title 5, United States Code, for persons in the
    Government service employed intermittently.
      (i) Resource plans and permits, contracts, and other
    instruments for the use and occupancy of National Forest System
    lands shall be consistent with the land management plans. Those
    resource plans and permits, contracts, and other such
    instruments currently in existence shall be revised as soon as
    practicable to be made consistent with such plans. When land
    management plans are revised, resource plans and permits,
    contracts, and other instruments, when necessary, shall be
    revised as soon as practicable. Any revision in present or
    future permits, contracts, and other instruments made pursuant
    to this section shall be subject to valid existing rights.
      (j) Land management plans and revisions shall become
    effective thirty days after completion of public participation
    and publication of notification by the Secretary as required
    under section 6(d) of this Act.
      (k) In developing land management plans pursuant to this Act,
    the Secretary shall identify lands within the management area
    which are not suited for timber production, considering
    physical, economic, and other pertinent factors to the extent
    feasible, as determined by the Secretary, and shall assure
    that, except for salvage sales or sales necessitated to protect
    other multiple-use, values, no timber harvesting shall occur on
    such lands for a period of 10 years. Lands once identified as
    unsuitable for timber production shall continue to be treated
    for reforestation purposes, particularly with regard to the
    protection of other multiple-use values. The Secretary shall
    review his decision to classify these lands as not suited for
    timber production at least every 10 years and shall return
    these lands to timber production whenever he determines that
    conditions have changed so that they have become suitable for
    timber production.
      (l) The Secretary shall--
              (1) formulate and implement, as soon as practicable,
            a process for estimating long-terms costs and benefits
            to support the program evaluation requirements of this
            Act. This process shall include requirements to provide
            information on a representative sample basis of
            estimated expenditures associated with the
            reforestation, timber stand improvement, and sale of
            timber from the National Forest System, and shall
            provide a comparison of these expenditures to the
            return to the Government resulting from the sale of
            timber; and
              (2) include a summary of data and findings resulting
            from these estimates as a part of the annual report
            required pursuant to section 8(c) of this Act,
            including an identification on a representative sample
            basis of those advertised timber sales made below the
            estimated expenditures for such timber as determined by
            the above cost process; and
      (m) The Secretary shall establish--
              (1) standards to insure that, prior to harvest,
            stands of trees throughout the National Forest System
            shall generally have reached the culmination of mean
            annual increment of growth (calculated on the basis of
            cubic measurement or other methods of calculation at
            the discretion of the Secretary): Provided: That these
            standards shall not preclude the use of sound
            silvicultural practices, such as thinning or other
            stand improvement measures: Provided further, That
            these standards shall not preclude the Secretary from
            salvage or sanitation harvesting of timber stands which
            are substantially damaged by fire, windthrow or other
            catastrophe, or which are in imminent danger from
            insect or disease attack; and
              (2) exceptions to these standards for the harvest of
            particular species of trees in management units after
            consideration has been given to be multiple uses of the
            forest including, but not limited to, recreation,
            wildlife habitat, and range and after completion of
            public participation processes utilizing the procedures
            of subsection (d) of this section.

               *       *       *       *       *       *       *

                                  ----------

                 FEDERAL LAND POLICY AND MANAGEMENT ACT OF 1976

               *       *       *       *       *       *       *

               TITLE II--LAND USE PLANNING; LAND ACQUISITION AND
                                  DISPOSITION

               *       *       *       *       *       *       *

                               land use planning

      Sec. 202. (a) The Secretary shall, with public involvement
    and consistent with the terms and conditions of this Act,
    develop, maintain, and, when appropriate, revise land use plans
    which provide by tracts or areas for the use of the public
    lands. Land use plans shall be developed for the public lands
    regardless of whether such lands previously have been
    classified, withdrawn, set aside, or otherwise designated for
    one or more uses.
      (b) In the development and revision of land use plans, the
    Secretary of Agriculture shall coordinate land use plans for
    lands in the National Forest System with the land use planning
    and management programs of and for Indian tribes by among other
    things, considering the policies of approved tribal land
    resource management programs.
      (c) In the development and revision of land use plans, the
    Secretary shall--
              (1) use and observe the principles of multiple use
            and sustained yield set forth in this and other
            applicable law;
              (2) use a systematic interdisciplinary approach to
            achieve integrated consideration of physical,
            biological, economic, and other sciences;
              (3) give priority to the designation and protection
            of areas of critical environmental concern;
              (4) rely, to the extent it is available, on the
            inventory of the public lands, their resources, and
            other values;
              (5) consider present and potential uses of the public
            lands;
              (6) consider the relative scarcity of the values
            involved and the availability of alternative means
            (including recycling) and sites for realization of
            those values;
              (7) weigh long-term benefits to the public against
            short-term benefits;
              (8) provide for compliance with applicable pollution
            control laws, including State and Federal air, water,
            noise, or other pollution standards or implementation
            plans; and
              (9) to the extent consistent with the laws governing
            the administration of the public lands, coordinate the
            land use inventory, planning, and management activities
            of or for such lands with the land use planning and
            management programs of other Federal departments and
            agencies and of the States and local governments within
            which the lands are located, including, but not limited
            to, the statewide outdoor recreation plans developed
            under chapter 2003 of title 54, United States Code, and
            of or for Indian tribes by, among other things,
            considering the policies of approved State and tribal
            land resource management programs. In implementing this
            directive, the Secretary shall, to the extent he finds
            practical, keep apprised of State, local, and tribal
            land use plans; assure that consideration is given to
            those State, local, and tribal plans that are germane
            in the development of land use plans for public lands;
            assist in resolving, to the extent practical,
            inconsistencies between Federal and non-Federal
            Governmental plans, and shall provide for meaningful
            public involvement of State and local government
            officials, both elected and appointed, in the
            development of land use programs, land use regulations,
            and land use decisions for public lands, including
            early public notice of proposed decisions which may
            have a significant impact on non-Federal lands. Such
            officials in each State are authorized to furnish
            advice to the Secretary with respect to the development
            and revision of land use plans, land use guidelines,
            land use rules, and land use regulations for the public
            lands within such State and with respect to such other
            land use matters as may be referred to them by him.
            Land use plans of the Secretary under this section
            shall be consistent with State and local plans to the
            maximum extent he finds consistent with Federal law and
            the purposes of this Act.
      (d) Any classification of public lands or any land use plan
    in effect on the date of enactment of this Act is subject to
    review in the land use planning process conducted under this
    section, and all public lands, regardless of classification,
    are subject to inclusion in any land use plan developed
    pursuant to this section. The Secretary may modify or terminate
    any such classification consistent with such land use plans.
      (e) The Secretary may issue management decisions to implement
    land use plans developed or revised under this section in
    accordance with the following:
              (1) Such decisions, including but not limited to
            exclusions (that is, total elimination) of one or more
            of the principal or major uses made by a management
            decision shall remain subject to reconsideration,
            modification, and termination through revision by the
            Secretary or his delegate, under the provisions of this
            section, of the land use plan involved.
              (2) Any management decision or action pursuant to a
            management decision that excludes (that is, totally
            eliminates) one or more of the principal or major uses
            for two or more years with respect to a tract of land
            of one hundred thousand acres or more shall be reported
            by the Secretary to the House of Representatives and
            the Senate. If within ninety days from the giving of
            such notice (exclusive of days on which either House
            has adjourned for more than three consecutive days),
            the Congress adopts a concurrent resolution of
            nonapproval of the management decision or action, then
            the management decision or action shall be promptly
            terminated by the Secretary. If the committee to which
            a resolution has been referred during the said ninety
            day period, has not reported it at the end of thirty
            calendar days after its referral, it shall be in order
            to either discharge the committee from further
            consideration of such resolution or to discharge the
            committee from consideration of any other resolution
            with respect to the management decision or action. A
            motion to discharge may be made only by an individual
            favoring the resolution, shall be highly privileged
            (except that it may not be made after the committee has
            reported such a resolution), and debate thereon shall
            be limited to not more than one hour, to be divided
            equally between those favoring and those opposing the
            resolution. An amendment to the motion shall not be in
            order, and it shall not be in order to move to
            reconsider the vote by which the motion was agreed to
            or disagreed to. If the motion to discharge is agreed
            to or disagreed to, the motion may not be made with
            respect to any other resolution with respect to the
            same management decision or action. When the committee
            has reprinted, or has been discharged from further
            consideration of a resolution, it shall at any time
            thereafter be in order (even though a previous motion
            to the same effect has been disagreed to) to move to
            proceed to the consideration of the resolution. The
            motion shall be highly privileged and shall not be
            debatable. An amendment to the motion shall not be in
            order, and it shall not be in order to move to
            reconsider the vote by which the motion was agreed to
            or disagreed to.
              (3) Withdrawals made pursuant to section 204 of this
            Act may be used in carrying out management decisions,
            but public lands shall be removed from or restored to
            the operation of the Mining Law of 1872, as amended
            (R.S. 2318-2352; 30 U.S.C. 21 et. seq.) or transferred
            to another department, bureau, or agency only by
            withdrawal action pursuant to section 204 or other
            action pursuant to applicable law: Provided, That
            nothing in this section shall prevent a wholly owned
            Government corporation from acquiring and holding
            rights as a citizen under the Mining Law of 1872.
      (f) The Secretary shall allow an opportunity for public
    involvement and by regulation shall establish procedures,
    including public hearings where appropriate, to give Federal,
    State, and local governments and the public, adequate notice
    and opportunity to comment upon and participate in the
    formulation of plans and programs relating to the management of
    the public lands.
      (g) No Additional Consultation Required Under Certain
    Circumstances.--Notwithstanding any other provision of law, the
    Secretary shall not be required to reinitiate consultation
    under section 7(a)(2) of the Endangered Species Act of 1973 (16
    U.S.C. 1536(a)(2)) or section 402.16 of title 50, Code of
    Federal Regulations (or a successor regulation), on a land use
    plan approved, amended, or revised under this section when--
              (1) a new species is listed or critical habitat is
            designated under the Endangered Species Act of 1973 (16
            U.S.C. 1531 et seq.); or
              (2) new information reveals effects of the land use
            plan that may affect a species listed or critical
            habitat designated under that Act in a manner or to an
            extent not previously considered.

               *       *       *       *       *       *       *

                                  ----------

                   OMNIBUS PUBLIC LAND MANAGEMENT ACT OF 2009

               *       *       *       *       *       *       *

                    TITLE IV--FOREST LANDSCAPE RESTORATION

               *       *       *       *       *       *       *

    SEC. 4003. COLLABORATIVE FOREST LANDSCAPE RESTORATION PROGRAM.

      (a) In General.--The Secretary, in consultation with the
    Secretary of the Interior, shall establish a Collaborative
    Forest Landscape Restoration Program to select and fund
    ecological restoration treatments for priority forest
    landscapes in accordance with--
              (1) the Endangered Species Act of 1973 (16 U.S.C.
            1531 et seq.);
              (2) the National Environmental Policy Act of 1969 (42
            U.S.C. 4321 et seq.); and
              (3) any other applicable law.
      (b) Eligibility Criteria.--To be eligible for nomination
    under subsection (c), a collaborative forest landscape
    restoration proposal shall--
              (1) be based on a landscape restoration strategy
            that--
                      (A) is complete or substantially complete;
                      (B) identifies and prioritizes ecological
                    restoration treatments for a 10-year period
                    within a landscape that is--
                              (i) at least 50,000 acres;
                              (ii) comprised primarily of forested
                            National Forest System land, but may
                            also include land under the
                            jurisdiction of the Bureau of Land
                            Management, land under the jurisdiction
                            of the Bureau of Indian Affairs, or
                            other Federal, State, tribal, or
                            private land;
                              (iii) in need of active ecosystem
                            restoration; and
                              (iv) accessible by existing or
                            proposed wood-processing infrastructure
                            at an appropriate scale to use woody
                            biomass and small-diameter wood removed
                            in ecological restoration treatments;
                      (C) incorporates the best available science
                    and scientific application tools in ecological
                    restoration strategies;
                      (D) fully maintains, or contributes toward
                    the restoration of, the structure and
                    composition of old growth stands according to
                    the pre-fire suppression old growth conditions
                    characteristic of the forest type, taking into
                    account the contribution of the stand to
                    landscape fire adaptation and watershed health
                    and retaining the large trees contributing to
                    old growth structure;
                      (E) would carry out any forest restoration
                    treatments that reduce hazardous fuels by--
                              (i) focusing on small diameter trees,
                            thinning, strategic fuel breaks, and
                            fire use to modify fire behavior, as
                            measured by the projected reduction of
                            uncharacteristically severe wildfire
                            effects for the forest type (such as
                            adverse soil impacts, tree mortality or
                            other impacts); and
                              (ii) maximizing the retention of
                            large trees, as appropriate for the
                            forest type, to the extent that the
                            trees promote fire-resilient stands;
                            and
                      (F)(i) does not include the establishment of
                    permanent roads; and
                      (ii) would commit funding to decommission all
                    temporary roads constructed to carry out the
                    strategy;
              (2) be developed and implemented through a
            collaborative process that--
                      (A) includes multiple interested persons
                    representing diverse interests; and
                      (B)(i) is transparent and nonexclusive; or
                      (ii) meets the requirements for a resource
                    advisory committee under subsections (c)
                    through (f) of section 205 of Public Law 106-
                    393 (16 U.S.C. 500 note);
              (3) describe plans to--
                      (A) reduce the risk of uncharacteristic
                    wildfire, including through the use of fire for
                    ecological restoration and maintenance and
                    reestablishing natural fire regimes, where
                    appropriate;
                      (B) improve fish and wildlife habitat,
                    including for endangered, threatened, and
                    sensitive species;
                      (C) maintain or improve water quality and
                    watershed function;
                      (D) prevent, remediate, or control invasions
                    of exotic species or pathogens;
                      (E) maintain, decommission, and rehabilitate
                    roads and trails;
                      (F) use woody biomass and small-diameter
                    trees produced from projects implementing the
                    strategy;
                      (G) report annually on performance, including
                    through performance measures from the plan
                    entitled the ``10 Year Comprehensive Strategy
                    Implementation Plan'' and dated December 2006;
                    [and]
                      (H) take into account any applicable
                    community wildfire protection plan; and
                      (I) address standardized monitoring questions
                    and indicators;
              (4) analyze any anticipated cost savings, including
            those resulting from--
                      (A) reduced wildfire management costs; and
                      (B) a decrease in the unit costs of
                    implementing ecological restoration treatments
                    over time;
              (5) estimate--
                      (A) the annual Federal funding necessary to
                    implement the proposal; and
                      (B) the amount of new non-Federal investment
                    for carrying out the proposal that would be
                    leveraged;
              (6) describe the collaborative process through which
            the proposal was developed, including a description
            of--
                      (A) participation by or consultation with
                    State, local, and Tribal governments; and
                      (B) any established record of successful
                    collaborative planning and implementation of
                    ecological restoration projects on National
                    Forest System land and other land included in
                    the proposal by the collaborators; and
              (7) benefit local economies by providing local
            employment or training opportunities through contracts,
            grants, or agreements for restoration planning, design,
            implementation, or monitoring with--
                      (A) local private, nonprofit, or cooperative
                    entities;
                      (B) Youth Conservation Corps crews or related
                    partnerships, with State, local, and non-profit
                    youth groups;
                      (C) existing or proposed small or micro-
                    businesses, clusters, or incubators; or
                      (D) other entities that will hire or train
                    local people to complete such contracts,
                    grants, or agreements; and
              (8) be subject to any other requirements that the
            Secretary, in consultation with the Secretary of the
            Interior, determines to be necessary for the efficient
            and effective administration of the program.
      (c) Nomination Process.--
              (1) Submission.--A proposal shall be submitted to--
                      (A) the appropriate Regional Forester; and
                      (B) if actions under the jurisdiction of the
                    Secretary of the Interior are proposed, the
                    appropriate--
                              (i) State Director of the Bureau of
                            Land Management;
                              (ii) Regional Director of the Bureau
                            of Indian Affairs; or
                              (iii) other official of the
                            Department of the Interior.
              (2) Nomination.--
                      (A) In general.--A Regional Forester may
                    nominate for selection by the Secretary any
                    proposals that meet the eligibility criteria
                    established by subsection (b).
                      (B) Concurrence.--Any proposal nominated by
                    the Regional Forester that proposes actions
                    under the jurisdiction of the Secretary of the
                    Interior shall include the concurrence of the
                    appropriate--
                              (i) State Director of the Bureau of
                            Land Management;
                              (ii) Regional Director of the Bureau
                            of Indian Affairs; or
                              (iii) other official of the
                            Department of the Interior.
              (3) Documentation.--With respect to each proposal
            that is nominated under paragraph (2)--
                      (A) the appropriate Regional Forester shall--
                              (i) include a plan to use Federal
                            funds allocated to the region to fund
                            those costs of planning and carrying
                            out ecological restoration treatments
                            on National Forest System land,
                            consistent with the strategy, that
                            would not be covered by amounts
                            transferred to the Secretary from the
                            Fund; and
                              (ii) provide evidence that amounts
                            proposed to be transferred to the
                            Secretary from the Fund during the
                            first 2 fiscal years following
                            selection would be used to carry out
                            ecological restoration treatments
                            consistent with the strategy during the
                            same fiscal year in which the funds are
                            transferred to the Secretary;
                      (B) if actions under the jurisdiction of the
                    Secretary of the Interior are proposed, the
                    nomination shall include a plan to fund such
                    actions, consistent with the strategy, by the
                    appropriate--
                              (i) State Director of the Bureau of
                            Land Management;
                              (ii) Regional Director of the Bureau
                            of Indian Affairs; or
                              (iii) other official of the
                            Department of the Interior; and
                      (C) if actions on land not under the
                    jurisdiction of the Secretary or the Secretary
                    of the Interior are proposed, the appropriate
                    Regional Forester shall provide evidence that
                    the landowner intends to participate in, and
                    provide appropriate funding to carry out, the
                    actions.
      (d) Selection Process.--
              (1) In general.--After consulting with the advisory
            panel established under subsection (e), the Secretary,
            in consultation with the Secretary of the Interior,
            shall, subject to paragraph (2), select the best
            proposals that--
                      (A) have been nominated under subsection
                    (c)(2); and
                      (B) meet the eligibility criteria established
                    by subsection (b).
              (2) Criteria.--In selecting proposals under paragraph
            (1), the Secretary shall give special consideration
            to--
                      (A) the strength of the proposal and
                    strategy;
                      (B) the strength of the ecological case of
                    the proposal and the proposed ecological
                    restoration strategies;
                      (C) the strength of the collaborative process
                    and the likelihood of successful collaboration
                    throughout implementation;
                      (D) whether the proposal is likely to achieve
                    reductions in long-term wildfire management
                    costs;
                      (E) whether the proposal would reduce the
                    relative costs of carrying out ecological
                    restoration treatments as a result of the use
                    of woody biomass and small-diameter trees;
                    [and]
                      (F) whether an appropriate level of non-
                    Federal investment would be leveraged in
                    carrying out the proposal[.];
                      (G) proposals that seek to use innovative
                    implementation mechanisms, including good
                    neighbor agreements entered into under section
                    8206 of the Agricultural Act of 2014 (16 U.S.C.
                    2113a), and similar implementation mechanisms;
                      (H) proposals that seek to reduce the risk of
                    uncharacteristic wildfire or increase
                    ecological restoration activities--
                              (i) within areas across land
                            ownerships, including State, Tribal,
                            and private land; and
                              (ii) within the wildland-urban
                            interface; and
                      (I) proposals that seek to enhance watershed
                    health and drinking water sources.
              (3) Limitation.--The Secretary may select not more
            than--
                      [(A) 10 proposals to be funded during any
                    fiscal year;
                      [(B) 2 proposals in any 1 region of the
                    National Forest System to be funded during any
                    fiscal year; and]
                      (A) 4 proposals in any 1 region of the
                    National Forest System to be funded during any
                    fiscal year; and
                      [(C)] (B) the number of proposals that the
                    Secretary determines are likely to receive
                    adequate funding.
              (4) Waiver.--
                      (A) In general.--Subject to subparagraph (B),
                    after consulting with the advisory panel
                    established under subsection (e), if the
                    Secretary determines that a proposal that has
                    been selected under paragraph (1) and is being
                    carried out continues to meet the eligibility
                    criteria established by subsection (b), the
                    Secretary, on a case-by-case basis, may issue
                    for the proposal a 1-time extension of the 10-
                    year period requirement under paragraph (1)(B)
                    of that subsection.
                      (B) Limitation.--The extension described in
                    subparagraph (A)--
                              (i) shall be for the shortest period
                            of time practicable to complete
                            implementation of the proposal, as
                            determined by the Secretary; and
                              (ii) shall not exceed 10 years.
      (e) Advisory Panel.--
              (1) In general.--The Secretary shall establish and
            maintain an advisory panel comprised of not more than
            15 members to evaluate, and provide recommendations on,
            each proposal that has been nominated under subsection
            (c)(2).
              (2) Representation.--The Secretary shall ensure that
            the membership of the advisory panel is fairly balanced
            in terms of the points of view represented and the
            functions to be performed by the advisory panel.
              (3) Inclusion.--The advisory panel shall include
            experts in ecological restoration, fire ecology, fire
            management, rural economic development, strategies for
            ecological adaptation to climate change, fish and
            wildlife ecology, and woody biomass and small-diameter
            tree utilization.
      (f) Collaborative Forest Landscape Restoration Fund.--
              (1) Establishment.--There is established in the
            Treasury of the United States a fund, to be known as
            the ``Collaborative Forest Landscape Restoration
            Fund'', to be used to pay up to 50 percent of the cost
            of carrying out and monitoring ecological restoration
            treatments on National Forest System land for each
            proposal selected to be carried out under subsection
            (d).
              (2) Inclusion.--The cost of carrying out ecological
            restoration treatments as provided in paragraph (1)
            may, as the Secretary determines to be appropriate,
            include cancellation and termination costs required to
            be obligated for contracts to carry out ecological
            restoration treatments on National Forest System land
            for each proposal selected to be carried out under
            subsection (d).
              (3) Contents.--The Fund shall consist of such amounts
            as are appropriated to the Fund under paragraph (6).
              (4) Expenditures from fund.--
                      (A) In general.--On request by the Secretary,
                    the Secretary of the Treasury shall transfer
                    from the Fund to the Secretary such amounts as
                    the Secretary determines are appropriate, in
                    accordance with paragraph (1).
                      (B) Limitation.--The Secretary shall not
                    expend money from the Fund on any 1 proposal--
                              (i) during a period of more than 10
                            fiscal years; or
                              (ii) in excess of $4,000,000 in any 1
                            fiscal year.
                      (C) Exception.--The limitation described in
                    subparagraph (B)(i) shall not apply to a
                    proposal for which a 1-time extension is
                    granted under subsection (d)(4).
              (5) Accounting and reporting system.--The Secretary
            shall establish an accounting and reporting system for
            the Fund.
              (6) Authorization of appropriations.--There is
            authorized to be appropriated to the Fund $80,000,000
            for each of fiscal years [2019 through 2023] 2027
            through 2031, to remain available until expended.
      (g) Program Implementation and Monitoring.--
              (1) Work plan.--Not later than 180 days after the
            date on which a proposal is selected to be carried out,
            the Secretary shall create, in collaboration with the
            interested persons, an implementation work plan and
            budget to implement the proposal that includes--
                      (A) a description of the manner in which the
                    proposal would be implemented to achieve
                    ecological and community economic benefit,
                    including capacity building to accomplish
                    restoration;
                      (B) a business plan that addresses
                              (i) the anticipated unit treatment
                            cost reductions over 10 years;
                              (ii) the anticipated costs for
                            infrastructure needed for the proposal;
                              (iii) the projected sustainability of
                            the supply of woody biomass and small-
                            diameter trees removed in ecological
                            restoration treatments; and
                              (iv the projected local economic
                            benefits of the proposal;
                      (C) documentation of the non-Federal
                    investment in the priority landscape, including
                    the sources and uses of the investments; and
                      (D) a plan to decommission any temporary
                    roads established to carry out the proposal.
              (2) Project implementation.--Amounts transferred to
            the Secretary from the Fund shall be used to carry out
            ecological restoration treatments that are--
                      (A) consistent with the proposal and
                    strategy; and
                      (B) identified through the collaborative
                    process described in subsection (b)(2).
              (3) Annual report.-- The Secretary, in collaboration
            with the Secretary of the Interior and interested
            persons, shall prepare an annual report on the
            accomplishments of each selected proposal that
            includes--
                      (A) a description of all acres (or other
                    appropriate unit) treated and restored through
                    projects implementing the strategy;
                      (B) an evaluation of progress, including
                    performance measures and how prior year
                    evaluations have contributed to improved
                    project performance;
                      (C) a description of community benefits
                    achieved, including any local economic
                    benefits;
                      (D) the results of the multiparty monitoring,
                    evaluation, and accountability process under
                    paragraph (4); and
                      (E) a summary of the costs of--
                              (i) treatments; and
                              (ii) relevant fire management
                            activities.
              (4) Multiparty monitoring.-- The Secretary shall, in
            collaboration with the Secretary of the Interior and
            interested persons, use a multiparty monitoring,
            evaluation, and accountability process to assess the
            positive or negative ecological, social, and economic
            effects of projects implementing a selected proposal
            for not less than 15 years after project implementation
            commences.
      (h) Report.--Not later than 5 years after the first fiscal
    year in which funding is made available to carry out ecological
    restoration projects under the program, and every 5 years
    thereafter, the Secretary, in consultation with the Secretary
    of the Interior, shall submit a report on the program,
    including an assessment of whether, and to what extent, the
    program is fulfilling the purposes of this title, to--
              (1) the Committee on Energy and Natural Resources of
            the Senate;
              (2) the Committee on Appropriations of the Senate;
              (3) the Committee on Agriculture, Nutrition, and
            Forestry of the Senate;
              (4) the Committee on Natural Resources of the House
            of Representatives;
              (5) the Committee on Appropriations of the House of
            Representatives; and
              (6) the Committee on Agriculture of the House of
            Representatives.

               *       *       *       *       *       *       *

                                  ----------

                     NATIONAL FOREST MANAGEMENT ACT OF 1976

               *       *       *       *       *       *       *

                  timber sales on national forest system lands

      Sec. 14. (a) For the purpose of achieving the policies set
    forth in the Multiple-Use Sustained-Yield Act of 1960 (74 Stat.
    215; 16 U.S.C. 528-531) and the Forest and Rangeland Renewable
    Resources Planning Act of 1974 (88 Stat. 476; 16 U.S.C. 1601-
    1610), the Secretary of Agriculture, under such rules and
    regulations as he may prescribe, may sell, at not less than
    appraised value, trees, portions of trees, or forest products
    located on National Forest System lands.
      (b) All advertised timber sales shall be designated on maps,
    and a prospectus shall be available to the public and
    interested potential bidders.
      (c) The length and other terms of the contract shall be
    designed to promote orderly harvesting consistent with the
    principles set out in section 6 of the Forest and Rangeland
    Renewable Resources Planning Act of 1974, as amended. Unless
    there is a finding by the Secretary of Agriculture that better
    utilization of the various forest resources (consistent with
    the provisions of the Multiple-Use Sustained-Yield Act of 1960)
    will result, sales contracts shall be for a period not to
    exceed ten years: Provided, That such period may be adjusted at
    the discretion of the Secretary to provide additional time due
    to time delays caused by an act of an agent of the United
    States or by other circumstances beyond the control of the
    purchaser. The Secretary shall require the purchaser to file as
    soon as practicable after execution of a contract for any
    advertised sale with a term of two years or more, a plan of
    operation, which shall be subject to concurrence by the
    Secretary. The Secretary shall not extend any contract period
    with an original term of two years or more unless he finds (A)
    that the purchaser has diligently performed in accordance with
    an approved plan of operation or (B) that the substantial
    overriding public interest justifies the extension.
      (d) The Secretary of Agriculture shall advertise all sales
    unless he determines that extraordinary conditions exist, as
    defined by regulation, or that the appraised value of the sale
    is less than [$10,000] $55,000. If, upon proper offering, no
    satisfactory bid is received for a sale, or the bidder fails to
    complete the purchase, the sale may be offered and sold without
    further advertisement.
      (e)(1) In the sale of trees, portions of trees, or forest
    products from National Forest System lands (hereinafter
    referred to in this subsection as ``national forest
    materials''), the Secretary of Agriculture shall select the
    bidding method or methods which--
              (A) insure open and fair competition;
              (B) insure that the Federal Government receive not
            less than the appraised value as required by subsection
            (a) of this section;
              (C) consider the economic stability of communities
            whose economies are dependent on such national forest
            materials, or achieve such other objectives as the
            Secretary deems necessary; and
              (D) are consistent with the objectives of this Act
            and other Federal statutes.
    The Secretary shall select or alter the bidding method or
    methods as he determines necessary to achieve the objectives
    stated in clauses (A), (B), (C), and (D) of this paragraph.
      (2) In those instances when the Secretary selects oral
    auction as the bidding method for the sale of any national
    forest materials, he shall require that all prospective
    purchasers submit written sealed qualifying bids. Only
    prospective purchasers whose written sealed qualifying bids are
    equal to or in excess of the appraised value of such national
    forest materials may participate in the oral bidding process.
      (3) The Secretary shall monitor bidding patterns involved in
    the sale of national forest materials. If the Secretary has a
    reasonable belief that collusive bidding practices may be
    occurring, then--
              (A) he shall report any such instances of possible
            collusive bidding or suspected collusive bidding
            practices to the Attorney General of the United States
            with any and all supporting data;
              (B) he may alter the bidding methods used within the
            affected area; and
              (C) he shall take such other action as he deems
            necessary to eliminate such practices within the
            affected area.
      (f) The Secretary of Agriculture, under such rules and
    regulations as he may prescribe, is authorized to dispose of,
    by sale or otherwise, trees, portions of trees, or other forest
    products related to research and demonstration projects.
      (g) Designation and Supervision of Harvesting.--
              (1) In general.--Designation, including marking when
            necessary, designation by description, or designation
            by prescription, and supervision of harvesting of
            trees, portions of trees, or forest products shall be
            conducted by persons employed by the Secretary of
            Agriculture.
              (2) Requirement.--Persons employed by the Secretary
            of Agriculture under paragraph (1)--
                      (A) shall have no personal interest in the
                    purchase or harvest of the products; and
                      (B) shall not be directly or indirectly in
                    the employment of the purchaser of the
                    products.
              (3) Methods for designation.--Designation by
            prescription and designation by description shall be
            considered valid methods for designation, and may be
            supervised by use of post-harvest cruise, sample weight
            scaling, or other methods determined by the Secretary
            of Agriculture to be appropriate.
      (h) The Secretary of Agriculture shall develop utilization
    standards methods of measurement, and harvesting practices for
    the removal of trees, portions of trees, or forest products to
    provide for the optimum practical use of the wood material.
    Such standards, methods, and practices shall reflect
    consideration of opportunities to promote more effective wood
    utilization, regional conditions, and species characteristics
    and shall be compatible with multiple use resource management
    objectives in the affected area. To accomplish the purpose of
    this subsection in situations involving salvage of insect-
    infested, dead, damaged, or down timber, and to remove
    associated trees for stand improvement, the Secretary is
    authorized to require the purchasers of such timber to make
    monetary deposits, as a part of the payment for the timber, to
    be deposited in a designated fund from which sums are to be
    used, to cover the cost to the United States for design,
    engineering, and supervision of the construction of needed
    roads and the cost for Forest Service sale preparation and
    supervision of the harvesting of such timber. Deposits of money
    pursuant to this subsection are to be available until expended
    to cover the cost to the United States of accomplishing the
    purposes for which deposited: Provided, That such deposits
    shall not be considered as moneys received from the national
    forests within the meaning of sections 500 and 501 of title 16,
    United States Code: And provided further, That sums found to be
    in excess of the cost of accomplishing the purposes for which
    deposited on any national forest shall be transferred to
    miscellaneous receipts in the Treasury of the United States.
      (i)(1) For sales of timber which include a provision for
    purchaser credit for construction of permanent roads with an
    estimated cost in excess of $20,000, the Secretary of
    Agriculture shall promulgate regulations requiring that the
    notice of sale afford timber purchasers qualifying as ``small
    business concerns'' under the Small Business Act, as amended,
    and the regulations issued thereunder, an estimate of the cost
    and the right, when submitting a bid, to elect that the
    Secretary build the proposed road.
      (2) If the purchaser makes such an election, the price
    subsequently paid for the timber shall include all of the
    estimated cost of the road. In the notice of sale, the
    Secretary of Agriculture shall set a date when such road shall
    be completed which shall be applicable to either construction
    by the purchaser or the Secretary, depending on the election.
    To accomplish requested work, the Secretary is authorized to
    use from any receipts from the sale of timber a sum equal to
    the estimate for timber purchaser credits, and such additional
    sums as may be appropriated for the construction of roads, such
    funds to be available until expended, to construct a road that
    meets the standards specified in the notice of sale.
      (3) The provisions of this subsection shall become effective
    on October 1, 1976.
      (j) In the event of extreme risks to a unit of National
    Forest System land, including catastrophic wildfire, insect and
    disease outbreak, wind, hurricane, flood, drought, or to avoid
    impacts from such extreme events, the Secretary may, without an
    appraisal and under such rules and regulations prescribed by
    the Secretary, dispose of by sale or otherwise, portions of
    trees, or forest products located on such unit of National
    Forest System land.

               *       *       *       *       *       *       *

                                  ----------

             SECURE RURAL SCHOOLS AND COMMUNITY SELF-DETERMINATION
                                  ACT OF 2000

    SEC. 1. SHORT TITLE.

      This Act may be cited as the ``Secure Rural Schools and
    Community Self-Determination Act of 2000'' or the ``Doug
    LaMalfa Secure Rural Schools Act''.

               *       *       *       *       *       *       *

                  TITLE II--SPECIAL PROJECTS ON FEDERAL LAND

               *       *       *       *       *       *       *

    SEC. 205. RESOURCE ADVISORY COMMITTEES.

      (a) Establishment and Purpose of Resource Advisory
    Committees.--
              (1) Establishment.--The Secretary concerned shall
            establish and maintain resource advisory committees to
            perform the duties in subsection (b), except as
            provided in paragraph (4).
              (2) Purpose.--The purpose of a resource advisory
            committee shall be--
                      (A) to improve collaborative relationships;
                    and
                      (B) to provide advice and recommendations to
                    the land management agencies consistent with
                    the purposes of this title.
              (3) Access to resource advisory committees.--To
            ensure that each unit of Federal land has access to a
            resource advisory committee, and that there is
            sufficient interest in participation on a committee to
            ensure that membership can be balanced in terms of the
            points of view represented and the functions to be
            performed, the Secretary concerned may, establish
            resource advisory committees for part of, or 1 or more,
            units of Federal land.
              (4) Existing advisory committees.--
                      (A) In general.--An advisory committee that
                    meets the requirements of this section, a
                    resource advisory committee established before
                    December 20, 2023, or an advisory committee
                    determined by the Secretary concerned before
                    December 20, 2023, to meet the requirements of
                    this section may be deemed by the Secretary
                    concerned to be a resource advisory committee
                    for the purposes of this title.
                      (B) Charter.--A charter for a committee
                    described in subparagraph (A) that was filed on
                    or before December 20, 2023, shall be
                    considered to be filed for purposes of this
                    Act.
                      (C) Bureau of land management advisory
                    committees.--The Secretary of the Interior may
                    deem a resource advisory committee meeting the
                    requirements of subpart 1784 of part 1780 of
                    title 43, Code of Federal Regulations, as a
                    resource advisory committee for the purposes of
                    this title.
      (b) Duties.--A resource advisory committee shall--
              (1) review projects proposed under this title by
            participating counties and other persons;
              (2) propose projects and funding to the Secretary
            concerned under section 203;
              (3) provide early and continuous coordination with
            appropriate land management agency officials in
            recommending projects consistent with purposes of this
            Act under this title;
              (4) provide frequent opportunities for citizens,
            organizations, tribes, land management agencies, and
            other interested parties to participate openly and
            meaningfully, beginning at the early stages of the
            project development process under this title;
              (5)(A) monitor projects that have been approved under
            section 204; and
              (B) advise the designated Federal official on the
            progress of the monitoring efforts under subparagraph
            (A); and
              (6) make recommendations to the Secretary concerned
            for any appropriate changes or adjustments to the
            projects being monitored by the resource advisory
            committee.
      (c) Appointment by the Secretary.--
              (1) Appointment and term.--
                      (A) In general.--The Secretary concerned
                    shall appoint the members of resource advisory
                    committees for a term of 4 years beginning on
                    the date of appointment.
                      (B) Reappointment.--The Secretary concerned
                    may reappoint members to subsequent 4-year
                    terms.
              (2) Basic requirements.--The Secretary concerned
            shall ensure that each resource advisory committee
            established meets the requirements of subsection (d).
              (3) Initial appointment.--Not later than 180 days
            after October 3, 2008, the Secretary concerned shall
            make initial appointments to the resource advisory
            committees.
              (4) Vacancies.--The Secretary concerned shall make
            appointments to fill vacancies on any resource advisory
            committee as soon as practicable after the vacancy has
            occurred.
              (5) Compensation.--Members of the resource advisory
            committees shall not receive any compensation.
              (6) Appointments by applicable regional foresters.--
            In making appointments under this subsection, the
            Secretary concerned may act through the applicable
            regional forester so long as before the applicable
            regional forester makes an appointment, the applicable
            regional forester conducts the review and analysis that
            would otherwise be conducted for an appointment to a
            resource advisory committee, including any review and
            analysis with respect to civil rights, budgetary
            requirements, vetting, and reporting, as the Secretary
            concerned determines appropriate.
      (d) Composition of Advisory Committee.--
              (1) Number.--Except as provided in paragraph (6),
            each resource advisory committee shall be comprised of
            15 members.
              (2) Community interests represented.--Except as
            provided in paragraph (6), committee members shall be
            representative of the interests of the following 3
            categories:
                      (A) 5 persons that--
                              (i) represent organized labor or non-
                            timber forest product harvester groups;
                              (ii) represent developed outdoor
                            recreation, off highway vehicle users,
                            or commercial recreation activities;
                              (iii) represent--
                                      (I) energy and mineral
                                    development interests; or
                                      (II) commercial or
                                    recreational fishing interests;
                              (iv) represent the commercial timber
                            industry; or
                              (v) hold Federal grazing or other
                            land use permits, or represent
                            nonindustrial private forest land
                            owners, within the area for which the
                            committee is organized.
                      (B) 5 persons that represent--
                              (i) nationally recognized
                            environmental organizations;
                              (ii) regionally or locally recognized
                            environmental organizations;
                              (iii) dispersed recreational
                            activities;
                              (iv) archaeological and historical
                            interests; or
                              (v) nationally or regionally
                            recognized wild horse and burro
                            interest groups, wildlife or hunting
                            organizations, or watershed
                            associations.
                      (C) 5 persons that--
                              (i) hold State elected office (or a
                            designee);
                              (ii) hold county or local elected
                            office;
                              (iii) represent American Indian
                            tribes within or adjacent to the area
                            for which the committee is organized;
                              (iv) are school officials or
                            teachers; or
                              (v) represent the affected public at
                            large.
              (3) Balanced representation.--In appointing committee
            members from the 3 categories in paragraph (2), the
            Secretary concerned shall provide for balanced and
            broad representation from within each category.
              (4) Geographic distribution.--The members of a
            resource advisory committee shall reside within the
            State in which the committee has jurisdiction and, to
            the extent practicable, the Secretary concerned shall
            ensure local representation in each category in
            paragraph (2).
              (5) Chairperson.--A majority on each resource
            advisory committee shall select the chairperson of the
            committee.
              (6) Committee composition waiver authority.--
                      (A) Notice.--On notice from the applicable
                    regional forester that an adequate number of
                    qualified candidates are not interested or
                    available to serve on a resource advisory
                    committee, the Secretary concerned shall
                    publish a notice in the Federal Register
                    seeking candidates for the resource advisory
                    committee.
                      (B) Modification of membership
                    requirements.--If, by the date that is 30 days
                    after the date of publication of notice under
                    subparagraph (A), an inadequate number of
                    qualified candidates have applied to serve on a
                    resource advisory committee, the Secretary
                    concerned may reduce--
                              (i) the membership requirement under
                            paragraph (1) to not fewer than 9; and
                              (ii) the membership requirements
                            under subparagraphs (A), (B), and (C)
                            of paragraph (2) to 3 in each category
                            described in that paragraph, except
                            that where a vacancy exists on a
                            resource advisory committee, the
                            Secretary concerned may not reject a
                            qualified applicant from any category.
                      (C) Termination of authority.--The authority
                    provided under this paragraph terminates on
                    [October 1, 2026] October 1, 2031.
      (e) Approval Procedures.--
              (1) In general.--Subject to paragraph (3), each
            resource advisory committee shall establish procedures
            for proposing projects to the Secretary concerned under
            this title.
              (2) Quorum.--A quorum must be present to constitute
            an official meeting of the committee.
              (3) Approval by majority of members.--A project may
            be proposed by a resource advisory committee to the
            Secretary concerned under section 203(a), if the
            project has been approved by a majority of members of
            the committee from each of the 3 categories in
            subsection (d)(2).
      (f) Other Committee Authorities and Requirements.--
              (1) Staff assistance.--A resource advisory committee
            may submit to the Secretary concerned a request for
            periodic staff assistance from Federal employees under
            the jurisdiction of the Secretary.
              (2) Meetings.--All meetings of a resource advisory
            committee shall be announced at least 1 week in advance
            in a local newspaper of record and shall be open to the
            public.
              (3) Records.--A resource advisory committee shall
            maintain records of the meetings of the committee and
            make the records available for public inspection.
      [(g) Resource Advisory Committee Appointment Pilot
    Programs.--
              [(1) Definitions.--In this subsection:
                      [(A) Applicable designee.--The term
                    ``applicable designee'' means the applicable
                    regional forester.
                      [(B) National pilot program.--The term
                    ``national pilot program'' means the national
                    pilot program established under paragraph
                    (4)(A).
                      [(C) Regional pilot program.--The term
                    ``regional pilot program'' means the regional
                    pilot program established under paragraph
                    (3)(A).
              [(2) Establishment of pilot programs.--In accordance
            with paragraphs (3) and (4), the Secretary concerned
            shall carry out 2 pilot programs to appoint members of
            resource advisory committees.
              [(3) Regional pilot program.--
                      [(A) In general.--The Secretary concerned
                    shall carry out a regional pilot program to
                    allow an applicable designee to appoint members
                    of resource advisory committees.
                      [(B) Geographic limitation.--The regional
                    pilot program shall only apply to resource
                    advisory committees chartered in--
                              [(i) the State of Montana; and
                              [(ii) the State of Arizona.
                      [(C) Responsibilities of applicable
                    designee.--
                              [(i) Review.--Before appointing a
                            member of a resource advisory committee
                            under the regional pilot program, an
                            applicable designee shall conduct the
                            review and analysis that would
                            otherwise be conducted for an
                            appointment to a resource advisory
                            committee if the regional pilot program
                            was not in effect, including any review
                            and analysis with respect to civil
                            rights and budgetary requirements.
                              [(ii) Savings clause.--Nothing in
                            this paragraph relieves an applicable
                            designee from any requirement developed
                            by the Secretary concerned for making
                            an appointment to a resource advisory
                            committee that is in effect on December
                            20, 2018, including any requirement for
                            advertising a vacancy.
              [(4) National pilot program.--
                      [(A) In general.--The Secretary concerned
                    shall carry out a national pilot program to
                    allow the Chief of the Forest Service or the
                    Director of the Bureau of Land Management, as
                    applicable, to submit to the Secretary
                    concerned nominations of individuals for
                    appointment as members of resource advisory
                    committees.
                      [(B) Appointment.--Under the national pilot
                    program, subject to subparagraph (C), not later
                    than 30 days after the date on which a
                    nomination is transmitted to the Secretary
                    concerned under subparagraph (A), the Secretary
                    concerned shall--
                              [(i) appoint the nominee to the
                            applicable resource advisory committee;
                            or
                              [(ii) reject the nomination.
                      [(C) Automatic appointment.--If the Secretary
                    concerned does not act on a nomination in
                    accordance with subparagraph (B) by the date
                    described in that subparagraph, the nominee
                    shall be deemed appointed to the applicable
                    resource advisory committee.
                      [(D) Geographic limitation.--The national
                    pilot program shall apply to a resource
                    advisory committee chartered in any State other
                    than--
                              [(i) the State of Montana; or
                              [(ii) the State of Arizona.
                      [(E) Savings clause.--Nothing in this
                    paragraph relieves the Secretary concerned from
                    any requirement relating to an appointment to a
                    resource advisory committee, including any
                    requirement with respect to civil rights or
                    advertising a vacancy.
              [(5) Termination of effectiveness.--The authority
            provided under this subsection terminates on October 1,
            2026.]

               *       *       *       *       *       *       *

                                  ----------

                               PUBLIC LAW 88-657

               *       *       *       *       *       *       *

    SEC. 8. FOREST SERVICE LEGACY ROAD AND TRAIL REMEDIATION PROGRAM.

      (a) Establishment.--The Secretary shall establish the Forest
    Service Legacy Road and Trail Remediation Program (referred to
    in this section as the ``Program'').
      (b) Activities.--In carrying out the Program, the Secretary
    shall, taking into account foreseeable changes in weather and
    hydrology--
              (1) restore passages for fish and other aquatic
            species by--
                      (A) improving, repairing, or replacing
                    culverts and other infrastructure; and
                      (B) removing barriers, as the Secretary
                    determines appropriate, from the passages;
              (2) decommission unauthorized user-created roads and
            trails that are not a National Forest System road or a
            National Forest System trail, if the applicable unit of
            the National Forest System has published--
                      (A) a Motor Vehicle Use Map and the road is
                    not identified as a National Forest System road
                    on that Motor Vehicle Use Map; or
                      (B) a map depicting the authorized trails in
                    the applicable unit of the National Forest
                    System and the trail is not identified as a
                    National Forest System trail on that map;
              (3) prepare previously closed National Forest System
            roads for long-term storage, in accordance with
            subsections (c)(1) and (d), in a manner that--
                      (A) prevents motor vehicle use, as
                    appropriate to conform to route designations;
                      (B) prevents the roads from damaging adjacent
                    resources, including aquatic and wildlife
                    resources;
                      (C) reduces or eliminates the need for road
                    maintenance; and
                      (D) preserves the roads for future use;
              (4) decommission previously closed National Forest
            System roads and trails in accordance with subsections
            (c)(1) and (d);
              (5) relocate National Forest System roads and
            trails--
                      (A) to increase resilience to extreme weather
                    events, flooding, and other natural disasters;
                    and
                      (B) to respond to changing resource
                    conditions and public input;
              (6) convert National Forest System roads to National
            Forest System trails, while allowing for continued use
            for motorized and nonmotorized recreation, to the
            extent the use is compatible with the management status
            of the road or trail;
              (7) decommission temporary roads--
                      (A) that were constructed before the date of
                    enactment of this section--
                              (i) for emergency operations; or
                              (ii) to facilitate a resource
                            extraction project;
                      (B) that were designated as a temporary road
                    by the Secretary; and
                      (C)(i) in violation of section 10(b) of the
                    Forest and Rangeland Renewable Resources
                    Planning Act of 1974 (16 U.S.C. 1608(b)), on
                    which vegetation cover has not been
                    reestablished; or
                      (ii) that have not been fully decommissioned;
                    and
              (8) carry out projects on National Forest System
            roads, trails, and bridges to improve resilience to
            extreme weather events, flooding, or other natural
            disasters.
      (c) Project Selection.--
              (1) Project eligibility.--
                      (A) In general.--The Secretary may only fund
                    under the Program a project described in
                    paragraph (3) or (4) of subsection (b) if the
                    Secretary previously and separately--
                              (i) solicited public comment for
                            changing the management status of the
                            applicable National Forest System road
                            or trail--
                                      (I) to close the road or
                                    trail to access; and
                                      (II) to minimize impacts to
                                    natural resources; and
                              (ii) has closed the road or trail to
                            access as described in clause (i)(I).
                      (B) Requirement.--Each project carried out
                    under the Program shall be on a National Forest
                    System road or trail, except with respect to--
                              (i) a project described in subsection
                            (b)(2); or
                              (ii) a project carried out on a
                            watershed for which the Secretary has
                            entered into a cooperative agreement
                            under section 323 of the Department of
                            the Interior and Related Agencies
                            Appropriations Act, 1999 (16 U.S.C.
                            1011a).
              (2) Annual selection of projects for funding.--The
            Secretary shall--
                      (A) establish a process for annually
                    selecting projects for funding under the
                    Program, consistent with the requirements of
                    this section;
                      [(B) solicit and consider public input
                    regionally in the ranking of projects for
                    funding under the Program;]
                      (B) solicit and consider public input
                    regionally in selecting projects for funding
                    under the Program by--
                              (i) publishing annually, for each
                            region, a list of projects considered
                            for funding under the Program;
                              (ii) accepting public comment on the
                            projects described in clause (i); and
                              (iii) considering public comments in
                            selecting projects for funding under
                            the Program;
                      (C) give priority for funding under the
                    Program to projects that would--
                              (i) protect or improve water quality
                            in public drinking water source areas;
                              (ii) restore the habitat of a
                            threatened, endangered, or sensitive
                            fish or wildlife species; or
                              (iii) maintain future access to the
                            adjacent area for the public,
                            contractors, permittees, or
                            firefighters; and
                      (D) annually, for each region, publish on the
                    website of the Forest Service--
                              (i) the selection process established
                            under subparagraph (A); and
                              [(ii) a list that includes a
                            description and the proposed outcome of
                            each project funded under the Program
                            in each fiscal year.]
                              (ii) a list that includes a
                            description of--
                                      (I) each project considered
                                    for funding under the Program;
                                      (II) public comments received
                                    on each project described in
                                    subclause (I);
                                      (III) the ranking within the
                                    applicable region of each
                                    project described in subclause
                                    (I); and
                                      (IV) the proposed outcome of
                                    each project funded under the
                                    Program for the applicable
                                    fiscal year.
      (d) Implementation.--In implementing the Program, the
    Secretary shall ensure that--
              (1) the system of roads and trails on the applicable
            unit of the National Forest System--
                      (A) is adequate to meet any increasing
                    demands for timber, recreation, and other uses;
                      (B) provides for intensive use, protection,
                    development, and management of the land under
                    principles of multiple use and sustained yield
                    of products and services;
                      (C) does not damage, degrade, or impair
                    adjacent resources, including aquatic and
                    wildlife resources, to the extent practicable;
                      (D) reflects long-term funding expectations;
                    and
                      (E) is adequate for supporting emergency
                    operations, such as evacuation routes during
                    wildfires, floods, and other natural disasters;
                    and
              (2) all projects funded under the Program are
            consistent with any applicable forest plan or travel
            management plan.
      (e) Savings Clause.--A decision to fund a project under the
    Program shall not affect any determination made previously or
    to be made in the future by the Secretary with regard to road
    or trail closures.
      (f) Definition of Region.--In this section, the term
    ``region'' means one of the 9 regions of the Forest Service.

                                  ----------

                  SPECIALTY CROPS COMPETITIVENESS ACT OF 2004

               *       *       *       *       *       *       *

                 TITLE I--STATE ASSISTANCE FOR SPECIALTY CROPS

    SEC. 101. SPECIALTY CROP BLOCK GRANTS.

      (a) Availability and Purpose of Grants.--Using the funds made
    available under subsection (l), the Secretary of Agriculture
    shall make grants to States for each of the fiscal years 2005
    through [2023] 2031 to be used by State departments of
    agriculture to enhance the competitiveness of [specialty crops,
    including--] specialty crops through priorities established
    annually by State program administrators in consultation with
    specialty crop producers and producer groups, including--
              (1) by leveraging efforts to market and promote
            specialty crops;
              (2) by assisting producers with research and
            development relevant to specialty crops;
              (3) by expanding availability and access to specialty
            crops;
              (4) by addressing local, regional, and national
            challenges confronting specialty crop producers; and
              (5) for such other purposes determined to be
            appropriate by the Secretary of Agriculture, in
            consultation with specialty crop stakeholders and
            relevant State departments of agriculture.
      (b) Grants Based on Value and Acreage.--Subject to subsection
    (c), for each State whose application for a grant for a fiscal
    year that is accepted by the Secretary under subsection (f),
    the amount of the grant for that fiscal year to the State under
    this section shall bear the same ratio to the total amount made
    available under subsection (l)(1) for that fiscal year as--
              (1) the average of the most recent available value of
            specialty crop production in the State and the acreage
            of specialty crop production in the State, as
            demonstrated in the most recent Census of Agriculture
            data; bears to
              (2) the average of the most recent available value of
            specialty crop production in all States and the acreage
            of specialty crop production in all States, as
            demonstrated in the most recent Census of Agriculture
            data.
      (c) Minimum Grant Amount.--Notwithstanding subsection (b),
    each State shall receive a grant under this section for each
    fiscal year in an amount that is at least equal to the higher
    of--
              (1) $100,000; or
              (2) \1/3\ of 1 percent of the total amount of funding
            made available to carry out this section for the fiscal
            year.
      (d) Eligibility.--To be eligible to receive a grant under
    this section, a State department of agriculture shall prepare
    and submit, for approval by the Secretary of Agriculture, an
    application at such time, in such a manner, and containing such
    information as the Secretary shall require by regulation,
    including--
              (1) a State plan that meets the requirements of
            subsection (e);
              (2) an assurance that the State will comply with the
            requirements of the plan; and
              (3) an assurance that grant funds received under this
            section shall supplement the expenditure of State funds
            in support of specialty crops grown in that State,
            rather than replace State funds.
      [(e) Plan Requirements.--The State plan shall identify the
    lead agency charged with the responsibility of carrying out the
    plan and indicate how the grant funds will be utilized to
    enhance the competitiveness of specialty crops.]
      (e) Plan Requirements.--The State plan shall identify the
    lead agency charged with the responsibility of carrying out the
    plan and indicate--
              (1) how the grant funds will be utilized to enhance
            the competitiveness of specialty crops; and
              (2) how outreach to, and consultation with, specialty
            crop producers and producer groups will be achieved.
      (f) Review of Application.--In reviewing the application of a
    State submitted under subsection (d), the Secretary of
    Agriculture shall ensure that the State plan would carry out
    the purpose of grant program, as specified in subsection (a).
    The Secretary may accept or reject applications for a grant
    under this section.
      (g) Effect of Noncompliance.--If the Secretary of
    Agriculture, after reasonable notice to a State, finds that
    there has been a failure by the State to comply substantially
    with any provision or requirement of the State plan, the
    Secretary may disqualify, for one or more years, the State from
    receipt of future grants under this section.
      (h) Audit Requirements.--For each year that a State receives
    a grant under this section, the State shall conduct an audit of
    the expenditures of grant funds by the State. Not later than 30
    days after the completion of the audit, the State shall submit
    a copy of the audit to the Secretary of Agriculture.
      (i) Reallocation.--
              (1) In general.--The Secretary shall reallocate to
            other States in accordance with paragraph (2) any
            amounts made available for a fiscal year under this
            section that are not obligated or expended by a date
            during that fiscal year determined by the Secretary.
              (2) Pro rata allocation.--The Secretary shall
            allocate funds described in paragraph (1) pro rata to
            the remaining States that applied during the specified
            grant application period.
              (3) Use of reallocated funds.--Funds allocated to a
            State under this subsection shall be used by the State
            only to carry out projects that were previously
            approved in the State plan of the State.
      (j) Multistate Projects.--
              (1) In general.--Not later than 180 days after the
            effective date of the Agricultural Act of 2014, the
            Secretary of Agriculture shall issue guidance for the
            purpose of making grants to multistate projects under
            this section for projects involving--
                      (A) food safety;
                      (B) plant pests and disease;
                      (C) research;
                      (D) crop-specific projects addressing common
                    issues; and
                      (E) any other area that furthers the purposes
                    of this section, as determined by the
                    Secretary.
              (2) Administration of multistate projects from
            nonparticipating states.--The Secretary of Agriculture
            may directly administer all aspects of multistate
            projects under this subsection for applicants in a
            nonparticipating State.
      (k) Administration.--
              (1) Department.--The Secretary of Agriculture may not
            use more than 3 percent of the funds made available to
            carry out this section for a fiscal year for
            administrative expenses.
              (2) States.--A State receiving a grant under this
            section may not use more than 8 percent of the funds
            received under the grant for a fiscal year for
            administrative expenses.
              (3) Evaluation.--
                      (A) Performance measures and review.--
                              (i) Development.--The Secretary of
                            Agriculture and the State departments
                            of agriculture, in consultation with
                            specialty crop stakeholders, shall
                            develop performance measures to be used
                            as the sole means of performing any
                            evaluation of the grant program
                            established under this section.
                              (ii) Review.--The Secretary of
                            Agriculture, in consultation with the
                            State departments of agriculture, shall
                            periodically evaluate the performance
                            of the grant program established under
                            this section.
                      (B) Cooperative agreements.--The Secretary of
                    Agriculture may enter into cooperative
                    agreements--
                              (i) to develop the performance
                            measures under subparagraph (A)(i); or
                              (ii) to evaluate the overall
                            performance of the grant program
                            established under this section.
      (l) Funding.--
               (1) In general.--Of the funds of the Commodity
            Credit Corporation, the Secretary of Agriculture shall
            make grants under this section, using--
                      (A) $10,000,000 for fiscal year 2008;
                      (B) $49,000,000 for fiscal year 2009;
                      (C) $55,000,000 for each of fiscal years 2010
                    through 2012;
                      (D) $72,500,000 for each of fiscal years 2014
                    through 2017;
                      (E) $85,000,000 for each of fiscal years 2018
                    through 2025; and
                      (F) $100,000,000 for fiscal year 2026 and
                    each fiscal year thereafter.
              (2) Multistate projects.--Of the funds made available
            under paragraph (1), the Secretary may use to carry out
            subsection (j), to remain available until expended--
                      (A) $1,000,000 for fiscal year 2014;
                      (B) $2,000,000 for fiscal year 2015;
                      (C) $3,000,000 for fiscal year 2016;
                      (D) $4,000,000 for fiscal year 2017; and
                      (E) $5,000,000 for fiscal year 2018 and each
                    fiscal year thereafter.

               *       *       *       *       *       *       *

                                  ----------

                              PLANT PROTECTION ACT

                        TITLE IV--PLANT PROTECTION ACT

               *       *       *       *       *       *       *

    SEC. 420A. PILOT PROGRAM FOR THE INTRA-ORGANIZATIONAL MOVEMENT OF
                        GENETICALLY ENGINEERED MICROORGANISMS BY CERTAIN
                        AUTHORIZED PARTIES.

      (a) Definitions.--In this section:
              (1) Covered microorganism.--The term ``covered
            microorganism''--
                      (A) means a genetically engineered
                    microorganism that is a plant pest or may pose
                    a plant pest risk; and
                      (B) does not include listed agents or toxins
                    (as defined in section 212(l) of the
                    Agricultural Bioterrorism Protection Act of
                    2002 (7 U.S.C. 8401(l))).
              (2) Covered unauthorized release.--The term ``covered
            unauthorized release'' means an unauthorized release of
            a covered microorganism, including such a release that
            a responsible party suspects took place.
              (3) Pilot program.--The term ``pilot program'' means
            the pilot program established under subsection (b).
              (4) Plant pest risk.--The term ``plant pest risk''
            has the meaning given such term in section 340.3 of
            title 7, Code of Federal Regulations (or successor
            regulations).
              (5) Responsible party.--The term ``responsible
            party'' means a partnership, corporation, association,
            joint venture, or other legal entity that--
                      (A) has a physical address in the United
                    States;
                      (B) is not owned by or otherwise affiliated
                    with the government of a country of concern (as
                    defined in section 10638 of the CHIPS Act of
                    2022 (42 U.S.C. 19237));
                      (C) has more than 1 responsible party
                    biocontainment facility;
                      (D) employs quality control personnel that
                    are capable of overseeing the movement and
                    control of covered microorganisms;
                      (E) has, in each of the 3 years preceding
                    enrollment in the pilot program, moved plant
                    pests pursuant to permits granted by the
                    Secretary under this Act;
                      (F) has the ability and resources to ensure
                    compliance with the requirements under
                    subsection (e) for the duration of the pilot
                    program;
                      (G) has implemented the precautions specified
                    in subsection (e) to prevent the unauthorized
                    release of covered microorganisms; and
                      (H) has not, during the 5-year period
                    preceding the date on which the relevant
                    application is submitted under subsection (c)--
                              (i) caused an unauthorized release of
                            a plant pest;
                              (ii) materially failed to comply with
                            a permit granted by the Secretary for
                            the interstate movement of plant pests;
                            or
                              (iii) violated any provision of this
                            section (including regulations
                            promulgated thereunder).
              (6) Responsible party biocontainment facility.--The
            term ``responsible party biocontainment facility''--
                      (A) means a physical structure or portion
                    thereof, constructed and maintained in order to
                    contain plant pests, that is under the control
                    of, or operated by, a responsible party within
                    the contiguous United States; and
                      (B) includes sites under the control of, or
                    operated by, any parent organization,
                    subsidiary, or affiliate of the responsible
                    party.
      (b) Establishment.--Not later than 100 days after the date of
    enactment of this section, the Secretary shall establish a
    pilot program under which the Secretary shall authorize not
    more than 75 responsible parties--
              (1) to move covered microorganisms in interstate
            commerce between responsible party biocontainment
            facilities without a permit; and
              (2) to maintain control over and dispose of such
            covered microorganisms.
      (c) Application.--
              (1) In general.--The Secretary shall accept
            applications from responsible parties for enrollment in
            the pilot program during a 45-day application period,
            beginning on the date on which the pilot program is
            established under subsection (b), using a web-based
            application process established by the Secretary.
              (2) Contents.--An application submitted by a
            responsible party for enrollment in the pilot program
            shall include the following:
                      (A) The name and contact information of the
                    responsible party and any agent of the
                    responsible party that will be involved in the
                    movement of a covered microorganism.
                      (B) The methods by which a covered
                    microorganism will be moved and the measures
                    taken to ensure that there is no unauthorized
                    release of the covered microorganism.
                      (C) The manner in which a shipping container,
                    packaging material, or any other material
                    accompanying the covered microorganism will be
                    disposed of to prevent the unauthorized release
                    of a covered microorganism.
                      (D) A list of responsible party
                    biocontainment facilities to which the
                    responsible party intends to move covered
                    microorganisms.
                      (E) A list of the predominant covered
                    microorganism chassis strains that, at the time
                    of the application, the responsible party
                    intends to move.
                      (F) A sworn certification that the
                    responsible party meets each criterion
                    specified in subsection (a)(5).
              (3) Supplemental applications.--
                      (A) In general.--A responsible party may
                    submit a supplemental application to the
                    Secretary to update a list under subparagraph
                    (D) or (E) of paragraph (2) at any time during
                    such enrollment. The Secretary shall make a
                    determination with respect to such supplemental
                    application not later than 30 days after the
                    date on which such supplemental application is
                    submitted to the Secretary.
                      (B) Denials.--The Secretary may only deny a
                    supplemental application if the Secretary has
                    made the determination set forth in subsection
                    (d)(2)(B). A denial of a supplemental
                    application shall be subject to appeal in
                    accordance with the terms specified in
                    subsection (d)(3).
      (d) Selection Process.--
              (1) Timing.--The Secretary shall--
                      (A) evaluate applications received under
                    subsection (c)(1) in the order in which the
                    applications are received; and
                      (B) approve or deny all applications received
                    during the period described in that subsection
                    not later than 45 days after the end of that
                    period.
              (2) Denial.--The Secretary shall deny an application
            received under subsection (c)(1) if--
                      (A) the Secretary has already selected 75
                    responsible parties for enrollment in the pilot
                    program; or
                      (B) the Secretary determines that the
                    responsible party submitting the application
                    does not meet each criterion specified in
                    subsection (a)(5).
              (3) Appeal.--
                      (A) In general.--A responsible party seeking
                    to enroll in the pilot program whose
                    application has been denied under paragraph (2)
                    may submit to the Secretary a written appeal
                    within--
                              (i) the 10-day period beginning on
                            the date on which the responsible party
                            receives written notification of the
                            denial; or
                              (ii) a longer period, if the
                            responsible party makes a request for
                            additional time to submit such appeal
                            and the Secretary grants such request.
                      (B) Decision.--The Secretary shall, within a
                    reasonably prompt period, grant or deny an
                    appeal under subparagraph (A) in writing, which
                    shall include the reasons for the decision.
      (e) Requirements.--A responsible party shall, as a condition
    of enrollment in the pilot program, agree to--
              (1) maintain, move, and dispose of covered
            microorganisms in a manner that prevents unauthorized
            release, spread, dispersal, or persistence of those
            covered microorganisms in the environment;
              (2) unless otherwise authorized under a permit under
            this Act, only move a covered microorganism between
            sites that are responsible party biocontainment
            facilities;
              (3) maintain, move, and dispose of each covered
            microorganism separately from other organisms;
              (4) ensure that each covered microorganism is
            maintained, moved, and disposed of in a manner
            commensurate with the plant pest risk posed by that
            covered microorganism;
              (5) use, at a minimum, a package for movement--
                      (A) that consists of a securely sealed inner
                    and outer container, each of which is an
                    effective barrier to the escape or unauthorized
                    dissemination of the covered microorganism;
                      (B) the inner container of which--
                              (i) contains all of the applicable
                            covered microorganism; and
                              (ii) is cushioned and sealed in such
                            a manner as to remain sealed during any
                            shock, impact, or change in pressure;
                            and
                      (C) the outer container of which is rigid and
                    strong enough to withstand typical shipping
                    conditions (such as dropping, stacking, and
                    impact from other freight) without opening;
              (6) on request, grant the Secretary access--
                      (A) to sample materials associated with the
                    interstate movement of covered microorganisms
                    under the pilot program;
                      (B) to observe and inspect the interstate
                    movement of those covered microorganisms; and
                      (C) to audit records of the activities of the
                    responsible party under the pilot program;
              (7) maintain detailed and accurate records of all
            activities carried out under the pilot program to
            demonstrate compliance with the applicable
            requirements;
              (8) on request, grant the Secretary access to each
            responsible party biocontainment facility for
            inspection in relation to a responsible party's
            enrollment in the pilot program; and
              (9) comply with any additional requirement for the
            containment of covered microorganisms in interstate
            commerce that the Secretary may require if--
                      (A) the Secretary determines that such an
                    additional requirement is reasonable; and
                      (B) the sole purpose of such additional
                    requirement is to avoid a covered unauthorized
                    release.
      (f) Prohibition on Certain Preferences.--In carrying out the
    pilot program, the Secretary shall take no action or promulgate
    any regulation that--
              (1) treats genetically engineered covered
            microorganisms less favorably than nongenetically
            engineered covered microorganisms; or
              (2) limits the quantity or type of covered
            microorganisms that may be moved under the pilot
            program between responsible party biocontainment
            facilities.
      (g) Reporting by Responsible Parties.--A responsible party
    shall submit to the Secretary a quarterly report that describes
    the activities of the responsible party under the pilot program
    during the period covered by the report, including--
              (1) a description of each covered microorganism moved
            in interstate commerce, including--
                      (A) the 1 or more countries or localities at
                    which the covered microorganism was collected,
                    developed, manufactured, reared, cultivated, or
                    cultured, as applicable;
                      (B) the genus, species, and any relevant
                    subspecies and common name information of the
                    covered microorganism; and
                      (C) when applicable, a brief description of
                    the genetic modifications made in the
                    microorganism, including--
                              (i) the intended phenotype that the 1
                            or more modifications are expected to
                            confer;
                              (ii) any targeted deletions,
                            insertions, or base pair substitutions;
                            and
                              (iii) the genetic elements used in
                            imparting the modification, including
                            the name, donor organism, and a brief
                            description of the function;
              (2) each method by which the covered microorganism
            was moved in interstate commerce;
              (3) the quantity of the covered microorganism moved
            in interstate commerce; and
              (4) the specific responsible party biocontainment
            facilities between which the covered microorganism was
            moved in interstate commerce.
      (h) Unauthorized Release.--In the case of a covered
    unauthorized release, a responsible party shall--
              (1) contact the applicable office within the Animal
            and Plant Health Inspection Service within 48 hours of
            discovery of the covered unauthorized release; and
              (2) submit to the Secretary a statement of facts
            pertaining to such release, in writing, not later than
            5 business days after the date of that discovery.
      (i) Disenrollment From Pilot Program.--
              (1) In general.--The Secretary shall terminate the
            enrollment of a responsible party in the pilot program
            if the Secretary has a sound factual basis to determine
            that--
                      (A) the responsible party no longer meets the
                    eligibility criteria of a responsible party
                    described in subsection (a)(5);
                      (B) the responsible party has materially
                    failed to comply with the requirements under
                    subsection (e); or
                      (C) as a result of a failure by a responsible
                    party under subparagraph (B), the responsible
                    party caused a covered unauthorized release
                    during the pilot program.
              (2) Disenrollment decision.--If the Secretary
            terminates the enrollment of a responsible party under
            paragraph (1), the Secretary shall submit that decision
            in writing to the responsible party.
              (3) Appeal.--The appeal process described in
            subsection (d)(3) shall apply in the case of a
            responsible party that seeks to appeal a termination of
            enrollment under paragraph (1).
      (j) Termination.--The pilot program shall terminate on the
    date that is 3 years after the date on which the Secretary
    completes the application selection process under subsection
    (d)(1)(B).
      (k) Report.--Not later than 6 months after the date of
    termination of the pilot program described in subsection (j),
    the Secretary shall submit to Congress a report that
    describes--
              (1) the activities carried out under the pilot
            program, including--
                      (A) the quantities and identities of covered
                    microorganisms that were moved; and
                      (B) a description of any unauthorized release
                    of covered microorganisms that were moved,
                    including a description of the cause and
                    consequence of any unauthorized release; and
              (2) recommendations on--
                      (A) whether the pilot program should become a
                    permanent program; and
                      (B) whether, as a permanent program, changes
                    should be made to the criteria for a
                    responsible party under subsection (a)(5) or to
                    the requirements under subsection (e).

               *       *       *       *       *       *       *

                                  ----------

                          AGRICULTURAL ADJUSTMENT ACT

                       TITLE I--AGRICULTURAL ADJUSTMENT

               *       *       *       *       *       *       *

                          Part 2--Commodity Benefits

               *       *       *       *       *       *       *

      Sec. 8e. (a) Subject to the provisions of subsections (c) and
    (d) and notwithstanding any other provision of law, whenever a
    marketing order issued by the Secretary of Agriculture pursuant
    to section 8c of this Act contains any terms or conditions
    regulating the grade, size, quality, or maturity of tomatoes,
    raisins, olives (other than Spanish-style green olives),
    prunes, avocados, mangoes, limes, grapefruit, green peppers,
    Irish potatoes, cucumbers, oranges, mandarin oranges, onions,
    almonds, walnuts, cherries, pecans, dates, filberts, table
    grapes, eggplants, kiwifruit, nectarines, clementines, plums,
    pistachios, apples, or caneberries (including raspberries,
    blackberries, and loganberries) produced in the United States
    the importation into the United States of any such commodity[,
    other than dates for processing,] during the period of time
    such order is in effect shall be prohibited unless it complies
    with the grade, size, quality, and maturity provisions of such
    order or comparable restrictions promulgated hereunder:
    Provided, That this prohibition shall not apply to such
    commodities when shipped into continental United States from
    the Commonwealth of Puerto Rico or any Territory or possession
    of the United States where this Act has force and effect:
    Provided further, That whenever two or more such marketing
    orders regulating the same agricultural commodity produced in
    different areas of the United States are concurrently in
    effect, the importation into the United States of any such
    commodity[, other than dates for processing,] shall be
    prohibited unless it complies with the grade, size, quality,
    and maturity provisions of the order which, as determined by
    the Secretary of Agriculture, regulates the commodity produced
    in the area with which the imported commodity is in most direct
    competition. Such prohibition shall not become effective until
    after the giving of such notice as the Secretary of Agriculture
    determines reasonable, which shall not be less than three days.
    In determining the amount of notice that is reasonable in the
    case of tomatoes the Secretary of Agriculture shall give due
    consideration to the time required for their transportation and
    entry into the United States after picking. Whenever the
    Secretary of Agriculture finds that the application of the
    restrictions under a marketing order to an imported commodity
    is not practicable because of variations in characteristics
    between the domestic and imported commodity he shall establish
    with respect to the imported commodity[, other than dates for
    processing,] such grade, size, quality, and maturity
    restrictions by varieties, types, or other classifications as
    he finds will be equivalent or comparable to those imposed upon
    the domestic commodity under such order. The Secretary of
    Agriculture may promulgate such rules and regulations as he
    deems necessary, to carry out the provisions of this section.
    Any person who violates any provision if this section or of any
    rule, regulation, or order promulgated hereunder shall be
    subject to a forfeiture in the amount prescribed in section
    8a(5) or, upon conviction, a penalty in the amount prescribed
    in section 8c(14) of the Act, or to both such forfeiture and
    penalty.
      (b)(1) The Secretary may provide for a period of time (not to
    exceed 35 days) in addition to the period of time covered by a
    marketing order during which the marketing order requirements
    would be in effect for a particular commodity during any year
    if the Secretary determines that such additional period of time
    is necessary--
              (A) to effectuate the purposes of this Act; and
              (B) to prevent the circumvention of the grade, size,
            quality, or maturity standards of a seasonal marketing
            order applicable to a commodity produced in the United
            States by imports of such commodity.
      (2) In making the determination required by paragraph (1),
    the Secretary, through notice and comment procedures, shall
    consider--
              (A) to what extent, during the previous year, imports
            of a commodity that did not meet the requirements of a
            marketing order applicable to such commodity were
            marketed in the United States during the period that
            such marketing order requirements were in effect for
            available domestic commodities (or would have been
            marketed during such time if not for any additional
            period established by the Secretary);
              (B) if the importation into the United States of such
            commodity did, or was likely to, circumvent the grade,
            size, quality or maturity standards of a seasonal
            marketing order applicable to such commodity produced
            in the United States; and
              (C) the availability and price of commodities of the
            variety covered by the marketing order during any
            additional period the marketing order requirements are
            to be in effect.
      (3) An additional period established by the Secretary in
    accordance with this subsection shall be--
              (A) announced not later than 30 days before the date
            such additional period is to be in effect; and
              (B) reviewed by the Secretary on request, through
            notice and comment procedures, at least every 3 years
            in order to determine if the additional period is still
            needed to prevent circumvention of the seasonal
            marketing order by imported commodities.
      (4) For the purposes of carrying out this subsection, the
    Secretary is authorized to make such reasonable inspections as
    may be necessary.
      (c) Prior to any important prohibition or regulation under
    this section being made effective with respect to any
    commodity--
              (1) the Secretary of Agriculture shall notify the
            United States Trade Representative of such import
            prohibition or regulation; and
              (2) the United States Trade Representative shall
            advise the Secretary of Agriculture, within 60 days of
            the notification under paragraph (1), to ensure that
            the application of the grade, size, quality, and
            maturity provisions of the relevant marketing order, or
            comparable restrictions, to imports is not inconsistent
            with United States international obligations under any
            trade agreement, including the General Agreement on
            Tariffs and Trade.
      (d) The Secretary may proceed with the proposed prohibition
    or regulation if the Secretary receives the advice and
    concurrence of the United States Trade Representative within 60
    days of the notification under subsection (c)(1).

               *       *       *       *       *       *       *

                                  ----------

                      ORGANIC FOODS PRODUCTION ACT OF 1990

               *       *       *       *       *       *       *

                        TITLE XXI--ORGANIC CERTIFICATION

               *       *       *       *       *       *       *

    SEC. 2103. DEFINITIONS.

       As used in this title:
              (1) Agricultural product.--The term ``agricultural
            product'' means any agricultural commodity or product,
            whether raw or processed, including any commodity or
            product derived from livestock that is marketed in the
            United States for human or livestock consumption.
              (2) Botanical pesticides.--The term ``botanical
            pesticides'' means natural pesticides derived from
            plants.
              (3) Certifying agent.--
                      (A) In general.--The term ``certifying
                    agent'' means the chief executive officer of a
                    State or, in the case of a State that provides
                    for the Statewide election of an official to be
                    responsible solely for the administration of
                    the agricultural operations of the State, such
                    official, and any person (including private
                    entities) who is accredited by the Secretary as
                    a certifying agent for the purpose of
                    certifying a farm or handling operation as a
                    certified organic farm or handling operation in
                    accordance with this title.
                      (B) Foreign operations.--When used in the
                    context of a certifying agent operating in a
                    foreign country, the term ``certifying agent''
                    includes any person (including a private
                    entity)--
                              (i) accredited in accordance with
                            section 2115(d); or
                              (ii) accredited by a foreign
                            government that acted under an
                            equivalency agreement negotiated
                            between the United States and the
                            foreign government from which the
                            agricultural product is imported.
              (4) Certified organic farm.--The term ``certified
            organic farm'' means a farm, or portion of a farm, or
            site where agricultural products or livestock are
            produced, that is certified by the certifying agent
            under this title as utilizing a system of organic
            farming as described by this title.
              (5) Certified organic handling operation.--The term
            ``certified organic handling operation'' means any
            operation, or portion of any handling operation, that
            is certified by the certifying agent under this title
            as utilizing a system of organic handling as described
            under this title.
              (6) Crop year.--The term ``crop year'' means the
            normal growing season for a crop as determined by the
            Secretary.
              (7) Governing state official.--The term ``governing
            State official'' means the chief executive official of
            a State or, in the case of a State that provides for
            the Statewide election of an official to be responsible
            solely for the administration of the agricultural
            operations of the State, such official, who administers
            an organic certification program under this title.
              (8) Handle.--The term ``handle'' means to sell,
            process or package agricultural products.
              (9) Handler.--The term ``handler'' means any person
            engaged in the business of handling agricultural
            products, except such term shall not include final
            retailers of agricultural products that do not process
            agricultural products.
              (10) Handling operation.--The term ``handling
            operation'' means any operation or portion of an
            operation (except final retailers of agricultural
            products that do not process agricultural products)
            that--
                      (A) receives or otherwise acquires
                    agricultural products; and
                      (B) processes, packages, or stores such
                    products.
              (11) Livestock.--The term ``livestock'' means any
            cattle, sheep, goats, swine, poultry, equine animals
            used for food or in the production of food, fish used
            for food, wild or domesticated game, or other nonplant
            life.
              (12) National list.--The term ``national list'' means
            a list of approved and prohibited substances as
            provided for in section 2118.
              (13) National organic program import certificate.--
            The term ``national organic program import
            certificate'' means a form developed for purposes of
            the program under this title--
                      (A) to provide documentation sufficient to
                    verify that an agricultural product imported
                    for sale in the United States satisfies the
                    requirement under section 2115(c);
                      (B) which shall include, at a minimum,
                    information sufficient to indicate, with
                    respect to the agricultural product--
                              (i) the origin;
                              (ii) the destination;
                              (iii) the certifying agent issuing
                            the national organic program import
                            certificate;
                              (iv) the harmonized tariff code, if a
                            harmonized tariff code exists for the
                            agricultural product;
                              (v) the total weight; and
                              (vi) the organic standard to which
                            the agricultural product is certified;
                            and
                      (C) that is not more than otherwise required
                    under an equivalency agreement negotiated
                    between the United States and the foreign
                    government.
              (14) Organic plan.--The term ``organic plan'' means a
            plan of management of an organic farming or handling
            operation that has been agreed to by the producer or
            handler and the certifying agent and that includes
            written plans concerning all aspects of agricultural
            production or handling described in this title
            including crop rotation and other practices as required
            under this title.
              (15) Organically produced.--The term ``organically
            produced'' means an agricultural product that is
            produced and handled in accordance with this title.
              (16) Oversight protocols.--The term ``oversight
            protocols'' means the regulations, policies, and
            procedures issued by the Secretary under the
            authorities provided in sections 2104, 2107, 2114,
            2115, 2116, and 2120.
              [(16)] (17) Person.--The term ``person'' means an
            individual, group of individuals, corporation,
            association, organization, cooperative, or other
            entity.
              [(17)] (18) Pesticide.--The term ``pesticide'' means
            any substance which alone, in chemical combination, or
            in any formulation with one or more substances, is
            defined as a pesticide in the Federal Insecticide,
            Fungicide, and Rodenticide Act (7 U.S.C. 136 et seq.).
              [(18)] (19) Processing.--The term ``processing''
            means cooking, baking, heating, drying, mixing,
            grinding, churning, separating, extracting, cutting,
            fermenting, eviscerating, preserving, dehydrating,
            freezing, or otherwise manufacturing, and includes the
            packaging, canning, jarring, or otherwise enclosing
            food in a container.
              [(19)] (20) Producer.--The term ``producer'' means a
            person who engages in the business of growing or
            producing food or feed.
              (21) Risk to organic integrity.--The term ``risk to
            organic integrity'' means the likelihood that a product
            marketed as organically produced is, or contains, an
            agricultural product that was not produced using a
            system of organic farming in compliance with this
            title, not processed in compliance with this title, or
            both.
              [(20)] (22) Secretary.--The term ``Secretary'' means
            the Secretary of Agriculture.
              [(21)] (23) State organic certification program.--The
            term ``State organic certification program'' means a
            program that meets the requirements of section 2107, is
            approved by the Secretary, and that is designed to
            ensure that a product that is sold or labeled as
            ``organically produced'' under this title is produced
            and handled using organic methods.
              [(22)] (24) Synthetic.--The term ``synthetic'' means
            a substance that is formulated or manufactured by a
            chemical process or by a process that chemically
            changes a substance extracted from naturally occurring
            plant, animal, or mineral sources, except that such
            term shall not apply to substances created by naturally
            occurring biological processes.

               *       *       *       *       *       *       *

    SEC. 2107. GENERAL REQUIREMENTS.

      (a) In General.--A program established under this title
    shall--
              (1) provide that an agricultural product to be sold
            or labeled as organically produced must--
                      (A) be produced only on certified organic
                    farms and handled only through certified
                    organic handling operations in accordance with
                    this title; and
                      (B) be produced and handled in accordance
                    with such program;
              (2) require that producers and handlers desiring to
            participate under such program establish an organic
            plan under section 2114;
              (3) provide for procedures that allow producers and
            handlers to appeal an adverse administrative
            determination under this title;
              (4) require each certified organic farm or each
            certified organic handling operation to certify to the
            Secretary, the governing State official (if
            applicable), and the certifying agent on an annual
            basis, that such farm or handler has not produced or
            handled any agricultural product sold or labeled as
            organically produced except in accordance with this
            title;
              [(5) provide for annual on-site inspection by the
            certifying agent of each farm and handling operation
            that has been certified under this title;]
              (5) provide for annual inspections by the certifying
            agent of each farm and handling operation that has been
            certified under this title, which inspections shall
            be--
                      (A) in the case of a farm or handling
                    operation site located outside of the United
                    States, conducted on-site;
                      (B) in the case of a farm or handling
                    operation site located in the United States,
                    conducted on-site once every three years with
                    intervening annual inspections being conducted
                    on-site or virtually based on the farm's or
                    handling operation's risk to organic integrity,
                    as determined by the Secretary; and
                      (C) in the case of a handling operation that
                    acquires but does not physically receive,
                    process, package, or store organic products,
                    conducted through inspection methods, including
                    virtual methods, that provide sufficient
                    assurance of compliance, as determined by the
                    Secretary;
              (6) require periodic residue testing by certifying
            agents of agricultural products that have been produced
            on certified organic farms and handled through
            certified organic handling operations to determine
            whether such products contain any pesticide or other
            nonorganic residue or natural toxicants and to require
            certifying agents, to the extent that such agents are
            aware of a violation of applicable laws relating to
            food safety, to report such violation to the
            appropriate health agencies;
              (7) provide for appropriate and adequate enforcement
            procedures, as determined by the Secretary to be
            necessary and consistent with this title;
              (8) protect against conflict-of-interest as specified
            under section 2116(g);
              (9) provide for public access to certification
            documents and laboratory analyses that pertain to
            certification;
              (10) provide for the collection of reasonable fees
            from producers, certifying agents and handlers who
            participate in such program; and
              (11) require such other terms and conditions as may
            be determined by the Secretary to be necessary.
      (b) Discretionary Requirements.--An organic certification
    program established under this title may--
              (1) provide for the certification of an entire farm
            or handling operation or specific fields of a farm or
            parts of a handling operation if--
                      (A) in the case of a farm or field, the area
                    to be certified has distinct, defined
                    boundaries and buffer zones separating the land
                    being operated through the use of organic
                    methods from land that is not being operated
                    through the use of such methods;
                      (B) the operators of such farm or handling
                    operation maintain records of all organic
                    operations separate from records relating to
                    other operations and make such records
                    available at all times for inspection by the
                    Secretary, the certifying agent, and the
                    governing State official; and
                      (C) appropriate physical facilities,
                    machinery, and management practices are
                    established to prevent the possibility of a
                    mixing of organic and nonorganic products or a
                    penetration of prohibited chemicals or other
                    substances on the certified area; and
              (2) provide for reasonable exemptions from specific
            requirements of this title (except the provisions of
            section 2112) with respect to agricultural products
            produced on certified organic farms if such farms are
            subject to a Federal or State emergency pest or disease
            treatment program.
      (c) Wild Seafood.--
              (1) In general.--Notwithstanding the requirement of
            section 2107(a)(1)(A) requiring products be produced
            only on certified organic farms, the Secretary shall
            allow, through regulations promulgated after public
            notice and opportunity for comment, wild seafood to be
            certified or labeled as organic.
              (2) Consultation and accommodation.--In carrying out
            paragraph (1), the Secretary shall--
                      (A) consult with--
                              (i) the Secretary of Commerce;
                              (ii) the National Organic Standards
                            Board established under section 2119;
                              (iii) producers, processors, and
                            sellers; and
                              (iv) other interested members of the
                            public; and
                      (B) to the maximum extent practicable,
                    accommodate the unique characteristics of the
                    industries in the United States that harvest
                    and process wild seafood.
      (d) State Program.--A State organic certification program
    approved under this title may contain additional guidelines
    governing the production or handling of products sold or
    labeled as organically produced in such State as required in
    section 2108.
      (e) Availability of Fees.--
              (1) Account.--Fees collected under subsection (a)(10)
            (including late payment penalties and interest earned
            from investment of the fees) shall be credited to the
            account that incurs the cost of the services provided
            under this title.
              (2) Use.--The collected fees shall be available to
            the Secretary, without further appropriation or fiscal-
            year limitation, to pay the expenses of the Secretary
            incurred in providing accreditation services under this
            title.

               *       *       *       *       *       *       *

    SEC. 2122. ADMINISTRATION.

      (a) Regulations.--Not later than 540 days after the date of
    enactment of this title, the Secretary shall issue proposed
    regulations to carry out this title.
      (b) Assistance to State.--
              (1) Technical and other assistance.--The Secretary
            shall provide technical, administrative, and National
            Institute of Food and Agriculture assistance to assist
            States in the implementation of an organic
            certification program under this title.
              (2) Financial assistance.--The Secretary may provide
            financial assistance to any State that implements an
            organic certification program under this title.
      (c) Access to Data Documentation Systems.--The Secretary
    shall have access to available data from cross-border
    documentation systems administered by other Federal agencies,
    including the Automated Commercial Environment system of U.S.
    Customs and Border Protection.
      (d) Reports.--
              (1) In general.--Not later than March 1, 2020, and
            annually thereafter through March 1, [2023] 2031, the
            Secretary shall submit to Congress, and make publicly
            available on the website of the Department of
            Agriculture, a report describing national organic
            program activities with respect to all domestic and
            overseas investigations and compliance actions taken
            pursuant to this title during the preceding year.
              (2) Requirements.--The data described in paragraph
            (1) shall be broken down by agricultural product,
            quantity, value, and month.
              (3) Exception.--Any data determined by the Secretary
            to be confidential business information shall not be
            provided in the report under paragraph (1).

               *       *       *       *       *       *       *

    SEC. 2122B. ORGANIC TECHNICAL ASSISTANCE.

      (a) In General.--In carrying out this title, the Secretary
    may provide technical assistance, outreach, and education to
    support organic production through existing programs
    implemented by a covered agency.
      (b) Covered Agency.--For the purposes of this section, the
    term ``covered agency'' means--
              (1) the Agricultural Marketing Service;
              (2) the Agricultural Research Service;
              (3) the National Institute of Food and Agriculture;
              (4) the Farm Service Agency;
              (5) the Risk Management Agency;
              (6) the Natural Resources Conservation Service;
              (7) the Rural Business-Cooperative Service;
              (8) the Food and Nutrition Service; and
              (9) other agencies, as determined by the Secretary.

    SEC. 2122C. STUDY AND REFORM OF NATIONAL ORGANIC PROGRAM OVERSIGHT
                        PROTOCOLS.

      (a) Study.--Not later than 12 months after the date of
    enactment of this section, the Secretary shall conduct a
    comprehensive study for the purpose of determining whether the
    establishment of oversight protocols based on risk to organic
    integrity and the implementation of related reforms are
    necessary and appropriate.
      (b) Elements.--
              (1) In general.--In conducting the study under
            subsection (a), the Secretary shall examine the
            feasibility, opportunities, and implications of
            implementing oversight protocols that--
                      (A) are based on risk to organic integrity;
                      (B) include differential treatment of non-
                    compliance that increases the risk to organic
                    integrity versus non-compliance that does not;
                      (C) adopt standardized organic plans under
                    section 2114 aligned with the risk to organic
                    integrity;
                      (D) include a multi-tiered approach to
                    certification aligned with the risk to organic
                    integrity and the scale of the organic
                    operation; and
                      (E) provide increased guidance and
                    interpretations of standards and criteria
                    established under this title given by the
                    National Organic Program to certifying agents
                    and to certified organic farms and handling
                    operations.
              (2) Consideration of relevant factors.--In
            administering paragraph (1), the Secretary shall, with
            respect to certified organic farms, certified organic
            handling operations, and certifying agents, take into
            account--
                      (A) the scope of certification or
                    accreditation of each entity;
                      (B) the scale and complexity of each entity;
                      (C) the domestic or international location of
                    each entity;
                      (D) the history of compliance of each entity;
                    and
                      (E) other relevant factors.
      (c) Report.--Not later than 18 months after the date of
    enactment of this section, the Secretary shall submit to the
    appropriate congressional committees, and make publicly
    available on the websites of the Department of Agriculture, a
    report describing the findings of the study conducted under
    subsection (a).
      (d) Consultation.--In conducting the study under subsection
    (a), the Secretary shall consult with--
              (1) the National Organic Standards Board;
              (2) certifying agents;
              (3) certified organic farms and handling operations;
              (4) organic consumers; and
              (5) other relevant organic stakeholders.
      (e) Authority to Establish Additional Terms and Conditions.--
              (1) Issuance of regulations.--Based on the findings
            described in the report under subsection (c), and after
            consultation with the appropriate congressional
            committees, the Secretary may issue regulations to
            establish or modify oversight protocols under this
            title that the Secretary determines are necessary and
            appropriate, provided such regulations maintain strong
            organic integrity, support a resilient domestic organic
            sector, and are consistent with the requirements of
            this title.
              (2) Reducing oversight costs; prioritization.--In
            issuing the regulations under paragraph (1), the
            Secretary may seek to--
                      (A) reduce oversight costs and administrative
                    burdens for certified organic farms, certified
                    organic handling operations, and certifying
                    agents that present a lower risk to organic
                    integrity; or
                      (B) prioritize oversight resources for
                    activities that present a higher risk to
                    organic integrity.
      (f) Appropriate Congressional Committees Defined.--In this
    section, the term ``appropriate congressional committees''
    means--
              (1) the Committee on Agriculture of the House of
            Representatives; and
              (2) the Committee on Agriculture, Nutrition, and
            Forestry of the Senate.
      (g) Rule of Construction.--Nothing in this section shall be
    construed to limit the Secretary's authority to enforce
    compliance with this title to protect organic integrity.

    SEC. 2123. FUNDING.

      (a) In General.--There are authorized to be appropriated for
    each fiscal year such sums as may be necessary to carry out
    this title.
      (b) National Organic Program.--Notwithstanding any other
    provision of law, in order to carry out activities under the
    national organic program established under this title, there
    are authorized to be appropriated--
              (1) $15,000,000 for fiscal year 2018;
              (2) $16,500,000 for fiscal year 2019;
              (3) $18,000,000 for fiscal year 2020;
              (4) $20,000,000 for fiscal year 2021;
              (5) $22,000,000 for fiscal year 2022; and
              (6) $24,000,000 [for fiscal year 2023] for each of
            fiscal years 2023 through 2031.
      (c) Modernization and Improvement of International Trade
    Technology Systems and Data Collection.--
              (1) In general.--The Secretary shall establish a new
            system or modify an existing data collection and
            organization system to collect and organize in a single
            system quantitative data on imports of each organically
            produced agricultural product accepted into the United
            States.
              (2) Activities.--In carrying out paragraph (1), the
            Secretary shall modernize trade and transaction
            certificates to ensure full traceability to the port of
            entry without unduly hindering trade or commerce, such
            as through an electronic trade document exchange
            system.
              (3) Access.--The single system established under
            paragraph (1) shall be accessible by any agency with
            the direct authority to engage in--
                      (A) inspection of imports of agricultural
                    products;
                      (B) trade data collection and organization;
                    or
                      (C) enforcement of trade requirements for
                    organically produced agricultural products.
              (4) Funding.--Of the funds of the Commodity Credit
            Corporation, the Secretary shall make available
            $5,000,000 for fiscal year 2019, $1,000,000 for fiscal
            years 2024 and 2025, and $5,000,000 for fiscal year
            2026 for the purposes of--
                      (A) carrying out this subsection; and
                      (B) maintaining the database and technology
                    upgrades previously carried out under this
                    subsection, as in effect on the day before the
                    date of enactment of the Agriculture
                    Improvement Act of 2018.
              (5) Availability.--The amounts made available under
            paragraph (4) are in addition to any other funds made
            available for the purposes described in that paragraph
            and shall remain available until expended.

               *       *       *       *       *       *       *

                                  ----------

              FEDERAL INSECTICIDE, FUNGICIDE, AND RODENTICIDE ACT

               *       *       *       *       *       *       *

    SEC. 2. DEFINITIONS.

      For purposes of this Act--
      (a) Active Ingredient.--The term ``active ingredient''
    means--
              (1) in the case of a pesticide other than a plant
            regulator, defoliant, desiccant, or nitrogen
            stabilizer, an ingredient which will prevent, destroy,
            repel, or mitigate any pest;
              (2) in the case of a plant regulator, an ingredient
            which, through physiological action, will accelerate or
            retard the rate of growth or rate of maturation or
            otherwise alter the behavior of ornamental or crop
            plants or the product thereof;
              (3) in the case of a defoliant, an ingredient which
            will cause the leaves or foliage to drop from a plant;
              (4) in the case of a desiccant, an ingredient which
            will artificially accelerate the drying of plant
            tissue; and
              (5) in the case of a nitrogen stabilizer, an
            ingredient which will prevent or hinder the process of
            nitrification, denitrification, ammonia volatilization,
            or urease production through action affecting soil
            bacteria.
      (b) Administrator.--The term ``Administrator'' means the
    Administrator of the Environmental Protection Agency.
      (c) Adulterated.--The term ``adulterated'' applies to any
    pesticide if--
              (1) its strength or purity falls below the professed
            standard of quality as expressed on its labeling under
            which it is sold;
              (2) any substance has been substituted wholly or in
            part for the pesticide; or
              (3) any valuable constituent of the pesticide has
            been wholly or in part abstracted.
      (d) Animal.--The term ``animal'' means all vertebrate and
    invertebrate species, including but not limited to man and
    other mammals, birds, fish, and shellfish.
      (e) Certified Applicator, Etc.--
              (1) Certified applicator.--The term ``certified
            applicator'' means any individual who is certified
            under section 11 as authorized to use or supervise the
            use of any pesticide which is classified for restricted
            use. Any applicator who holds or applies registered
            pesticides, or uses dilutions of registered pesticides
            consistent with subsection (ee), only to provide a
            service of controlling pests without delivering any
            unapplied pesticide to any person so served is not
            deemed to be a seller or distributor of pesticides
            under this Act.
              (2) Private applicator.--The term ``private
            applicator'' means a certified applicator who uses or
            supervises the use of any pesticide which is classified
            for restricted use for purposes of producing any
            agricultural commodity on property owned or rented by
            the applicator or the applicator's employer or (if
            applied without compensation other than trading of
            personal services between producers of agricultural
            commodities) on the property of another person.
              (3) Commercial applicator.--The term ``commercial
            applicator'' means an applicator (whether or not the
            applicator is a private applicator with respect to some
            uses) who uses or supervises the use of any pesticide
            which is classified for restricted use for any purpose
            or on any property other than as provided by paragraph
            (2).
              (4) Under the direct supervision of a certified
            applicator.--Unless otherwise prescribed by its
            labeling, a pesticide shall be considered to be applied
            under the direct supervision of a certified applicator
            if it is applied by a competent person acting under the
            instructions and control of a certified applicator who
            is available if and when needed, even though such
            certified applicator is not physically present at the
            time and place the pesticide is applied.
      (f) Defoliant.--The term ``defoliant'' means any substance or
    mixture of substances intended for causing the leaves or
    foliage to drop from a plant, with or without causing
    abscission.
      (g) Desiccant.--The term ``desiccant'' means any substance or
    mixture of substances intended for artificially accelerating
    the drying of plant tissue.
      (h) Device.--The term ``device'' means any instrument or
    contrivance (other than a firearm) which is intended for
    trapping, destroying, repelling, or mitigating any pest or any
    other form of plant or animal life (other than man and other
    than bacteria, virus, or other microorganism on or in living
    man or other living animals); but not including equipment used
    for the application of pesticides when sold separately
    therefrom.
      (i) District Court.--The term ``district court'' means a
    United States district court, the District Court of Guam, the
    District Court of the Virgin Islands, and the highest court of
    American Samoa.
      (j) Environment.--The term ``environment'' includes water,
    air, land, and all plants and man and other animals living
    therein, and the interrelationships which exist among these.
      (k) Fungus.--The term ``fungus'' means any non-chlorophyll-
    bearing thallophyte (that is, any non-chlorophyll-bearing plant
    of a lower order than mosses and liverworts), as for example,
    rust, smut, mildew, mold, yeast, and bacteria, except those on
    or in living man or other animals and those on or in processed
    food, beverages, or pharmaceuticals.
      (l) Imminent Hazard.--The term ``imminent hazard'' means a
    situation which exists when the continued use of a pesticide
    during the time required for cancellation proceeding would be
    likely to result in unreasonable adverse effects on the
    environment or will involve unreasonable hazard to the survival
    of a species declared endangered by the Secretary of the
    Interior under Public Law 91-135.
      (m) Inert Ingredient.--The term ``inert ingredient'' means an
    ingredient which is not active.
      (n) Ingredient Statement.--The term ``ingredient statement''
    means a statement which contains--
              (1) the name and percentage of each active
            ingredient, and the total percentage of all inert
            ingredients, in the pesticide; and
              (2) if the pesticide contains arsenic in any form, a
            statement of the percentages of total and water soluble
            arsenic, calculated as elementary arsenic.
      (o) Insect.--The term ``insect'' means any of the numerous
    small invertebrate animals generally having the body more or
    less obviously segmented, for the most part belonging to the
    class insecta, comprising six-legged, usually winged forms, as
    for example, beetles, bugs, bees, flies, and to other allied
    classes of arthropods whose members are wingless and usually
    have more than six legs, as for example, spiders, mites, ticks,
    centipedes, and wood lice.
      (p) Label and Labeling.--
              (1) Label.--The term ``label'' means the written,
            printed, or graphic matter on, or attached to, the
            pesticide or device or any of its containers or
            wrappers.
              (2) Labeling.--The term ``labeling'' means all labels
            and all other written, printed, or graphic matter--
                      (A) accompanying the pesticide or device at
                    any time; or
                      (B) to which reference is made on the label
                    or in literature accompanying the pesticide or
                    device, except to current official publications
                    of the Environmental Protection Agency, the
                    United States Departments of Agriculture and
                    Interior, the Department of Health and Human
                    Services, State experiment stations, State
                    agricultural colleges, and other similar
                    Federal or State institutions or agencies
                    authorized by law to conduct research in the
                    field of pesticides.
      (q) Misbranded.--
              (1) A pesticide is misbranded if--
                      (A) its labeling bears any statement, design,
                    or graphic representation relative thereto or
                    to its ingredients which is false or misleading
                    in any particular;
                      (B) it is contained in a package or other
                    container or wrapping which does not conform to
                    the standards established by the Administrator
                    pursuant to section 25(c)(3);
                      (C) it is an imitation of, or is offered for
                    sale under the name of, another pesticide;
                      (D) its label does not bear the registration
                    number assigned under section 7 to each
                    establishment in which it was produced;
                      (E) any word, statement, or other information
                    required by or under authority of this Act to
                    appear on the label or labeling is not
                    prominently placed thereon with such
                    conspicuousness (as compared with other words,
                    statements, designs, or graphic matter in the
                    labeling) and in such terms as to render it
                    likely to be read and understood by the
                    ordinary individual under customary conditions
                    of purchase and use;
                      (F) the labeling accompanying it does not
                    contain directions for use which are necessary
                    for effecting the purpose for which the product
                    is intended and if complied with, together with
                    any requirements imposed under section 3(d) of
                    this Act, are adequate to protect health and
                    the environment;
                      (G) the label does not contain a warning or
                    caution statement which may be necessary and if
                    complied with, together with any requirements
                    imposed under section 3(d) of this Act, is
                    adequate to protect health and the environment;
                    or
                      (H) in the case of a pesticide not registered
                    in accordance with section 3 of this Act and
                    intended for export, the label does not
                    contain, in words prominently placed thereon
                    with such conspicuousness (as compared with
                    other words, statements, designs, or graphic
                    matter in the labeling) as to render it likely
                    to be noted by the ordinary individual under
                    customary conditions of purchase and use, the
                    following: ``Not Registered for Use in the
                    United States of America''.
              (2) A pesticide is misbranded if--
                      (A) the label does not bear an ingredient
                    statement on that part of the immediate
                    container (and on the outside container or
                    wrapper of the retail package, if there be one,
                    through which the ingredient statement on the
                    immediate container cannot be clearly read)
                    which is presented or displayed under customary
                    conditions of purchase, except that a pesticide
                    is not misbranded under this subparagraph if--
                              (i) the size or form of the immediate
                            container, or the outside container or
                            wrapper of the retail package, makes it
                            impracticable to place the ingredient
                            statement on the part which is
                            presented or displayed under customary
                            conditions of purchase; and
                              (ii) the ingredient statement appears
                            prominently on another part of the
                            immediate container, or outside
                            container or wrapper, permitted by the
                            Administrator;
                      (B) the labeling does not contain a statement
                    of the use classification under which the
                    product is registered;
                      (C) there is not affixed to its container,
                    and to the outside container or wrapper of the
                    retail package, if there be one, through which
                    the required information on the immediate
                    container cannot be clearly read, a label
                    bearing--
                              (i) the name and address of the
                            producer, registrant, or person for
                            whom produced;
                              (ii) the name, brand, or trademark
                            under which the pesticide is sold;
                              (iii) the net weight or measure of
                            the content, except that the
                            Administrator may permit reasonable
                            variations; and
                              (iv) when required by regulation of
                            the Administrator to effectuate the
                            purposes of this Act, the registration
                            number assigned to the pesticide under
                            this Act, and the use classification;
                            and
                      (D) the pesticide contains any substance or
                    substances in quantities highly toxic to man,
                    unless the label shall bear, in addition to any
                    other matter required by this Act--
                              (i) the skull and crossbones;
                              (ii) the word ``poison'' prominently
                            in red on a background of distinctly
                            contrasting color; and
                              (iii) a statement of a practical
                            treatment (first aid or otherwise) in
                            case of poisoning by the pesticide.
      (r) Nematode.--The term ``nematode'' means invertebrate
    animals of the phylum nemathelminthes and class nematoda, that
    is, unsegmented round worms with elongated, fusiform, or
    saclike bodies covered with cuticle, and inhabiting soil,
    water, plants, or plant parts; may also be called nemas or
    eelworms.
      (s) Person.--The term ``person'' means any individual,
    partnership, association, corporation, or any organized group
    of persons whether incorporated or not.
      (t) Pest.--The term ``pest'' means (1) any insect, rodent,
    nematode, fungus, weed, or (2) any other form of terrestrial or
    aquatic plant or animal life or virus, bacteria, or other
    micro-organism (except viruses, bacteria, or other micro-
    organisms on or in living man or other living animals) which
    the Administrator declares to be a pest under section 25(c)(1).
      (u) Pesticide.--The term ``pesticide'' means (1) any
    substance or mixture of substances intended for preventing,
    destroying, repelling, or mitigating any pest, (2) any
    substance or mixture of substances intended for use as a plant
    regulator, defoliant, or desiccant, and (3) any nitrogen
    stabilizer, except that the term ``pesticide'' shall not
    include any article that is a ``new animal drug'' within the
    meaning of section 201(w) of the Federal Food, Drug, and
    Cosmetic Act (21 U.S.C. 321(w)), that has been determined by
    the Secretary of Health and Human Services not to be a new
    animal drug by a regulation establishing conditions of use for
    the article, or that is an animal feed within the meaning of
    section 201(x) of such Act (21 U.S.C. 321(x)) bearing or
    containing a new animal drug. The term ``pesticide'' does not
    include liquid chemical sterilant products (including any
    sterilant or subordinate disinfectant claims on such products)
    for use on a critical or semi-critical device, as defined in
    section 201 of the Federal Food, Drug, and Cosmetic Act (21
    U.S.C. 321). For purposes of the preceding sentence, the term
    ``critical device'' includes any device which is introduced
    directly into the human body, either into or in contact with
    the bloodstream or normally sterile areas of the body and the
    term ``semi-critical device'' includes any device which
    contacts intact mucous membranes but which does not ordinarily
    penetrate the blood barrier or otherwise enter normally sterile
    areas of the body.
      [(v) Plant Regulator.--The term ``plant regulator'' means any
    substance or mixture of substances intended, through
    physiological action, for accelerating or retarding the rate of
    growth or rate of maturation, or for otherwise altering the
    behavior of plants or the produce thereof, but shall not
    include substances to the extent that they are intended as
    plant nutrients, trace elements, nutritional chemicals, plant
    inoculants, and soil amendments. Also, the term ``plant
    regulator'' shall not be required to include any of such of
    those nutrient mixtures or soil amendments as are commonly
    known as vitamin-hormone horticultural products, intended for
    improvement, maintenance, survival, health, and propagation of
    plants, and as are not for pest destruction and are nontoxic,
    nonpoisonous in the undiluted packaged concentration.]
      (v) Plant Regulator.--
              (1) In general.--The term ``plant regulator'' means
            any substance or mixture of substances intended,
            through physiological action, for accelerating or
            retarding the rate of growth or rate of maturation, or
            for otherwise altering the behavior of plants or the
            produce thereof.
              (2) Exclusions.--Such term shall not include--
                      (A) substances to the extent that they are--
                              (i) intended to be produced and used
                            within a plant; or
                              (ii) intended as plant nutrients,
                            trace elements, nutritional chemicals,
                            plant inoculants, soil amendments, or
                            vitamin hormone products; or
                      (B) plant biostimulants that--
                              (i) have a low-risk profile in
                            relation to humans and other organisms,
                            as determined by the Agency; and
                              (ii) are of biological origin or
                            include chemical compounds that are
                            synthetically derived, but
                            structurally-similar and functionally
                            identical to, substances of biological
                            origin.
      (w) Producer and Produce.--The term ``producer'' means the
    person who manufacturers, prepares, compounds, propagates, or
    processes any pesticide or device or active ingredient used in
    producing a pesticide. The term ``produce'' means to
    manufacture, prepare, compound, propagate, or process any
    pesticide or device or active ingredient used in producing a
    pesticide. The dilution by individuals of formulated pesticides
    for their own use and according to the directions on registered
    labels shall not of itself result in such individuals being
    included in the definition of ``producer'' for the purposes of
    this Act.
      (x) Protect Health and the Environment.--The terms ``protect
    health and the environment'' and ``protection of health and the
    environment'' mean protection against any unreasonable adverse
    effects on the environment.
      (y) Registrant.--The term ``registrant'' means a person who
    has registered any pesticide pursuant to the provisions of this
    Act.
      (z) Registration.--The term ``registration'' includes
    reregistration.
      (aa) State.--The term ``State'' means a State, the District
    of Columbia, the Commonwealth of Puerto Rico, the Virgin
    Islands, Guam, the Trust Territory of the Pacific Islands, and
    American Samoa.
      (bb) Unreasonable Adverse Effects on the Environment.--The
    term ``unreasonable adverse effects on the environment'' means
    (1) any unreasonable risk to man or the environment, taking
    into account the economic, social, and environmental costs and
    benefits of the use of any pesticide, or (2) a human dietary
    risk from residues that result from a use of a pesticide in or
    on any food inconsistent with the standard under section 408 of
    the Federal Food, Drug, and Cosmetic Act (21 U.S.C. 346a). The
    Administrator shall consider the risks and benefits of public
    health pesticides separate from the risks and benefits of other
    pesticides. In weighing any regulatory action concerning a
    public health pesticide under this Act, the Administrator shall
    weigh any risks of the pesticide against the health risks such
    as the diseases transmitted by the vector to be controlled by
    the pesticide.
      (cc) Weed.--The term ``weed'' means any plant which grows
    where not wanted.
      (dd) Establishment.--The term ``establishment'' means any
    place where a pesticide or device or active ingredient used in
    producing a pesticide is produced, or held, for distribution or
    sale.
      (ee) To Use Any Registered Pesticide in a Manner Inconsistent
    With Its Labeling.--The term ``to use any registered pesticide
    in a manner inconsistent with its labeling'' means to use any
    registered pesticide in a manner not permitted by the labeling,
    except that the term shall not include (1) applying a pesticide
    at any dosage, concentration, or frequency less than that
    specified on the labeling unless the labeling specifically
    prohibits deviation from the specified dosage, concentration,
    or frequency, (2) applying a pesticide against any target pest
    not specified on the labeling if the application is to the
    crop, animal, or site specified on the labeling, unless the
    Administrator has required that the labeling specifically state
    that the pesticide may be used only for the pests specified on
    the labeling after the Administrator has determined that the
    use of the pesticide against other pests would cause an
    unreasonable adverse effect on the environment, (3) employing
    any method of application not prohibited by the labeling unless
    the labeling specifically states that the product may be
    applied only by the methods specified on the labeling, (4)
    mixing a pesticide or pesticides with a fertilizer when such
    mixture is not prohibited by the labeling, (5) any use of a
    pesticide in conformance with section 5, 18, or 24 of this Act,
    or (6) any use of a pesticide in a manner that the
    Administrator determines to be consistent with the purposes of
    this Act. After March 31, 1979, the term shall not include the
    use of a pesticide for agricultural or forestry purposes at a
    dilution less than label dosage unless before or after that
    date the Administrator issues a regulation or advisory opinion
    consistent with the study provided for in section 27(b) of the
    Federal Pesticide Act of 1978, which regulation or advisory
    opinion specifically requires the use of definite amounts of
    dilution.
      (ff) Outstanding Data Requirement.--
              (1) In general.--The term ``outstanding data
            requirement'' means a requirement for any study,
            information, or data that is necessary to make a
            determination under section 3(c)(5) and which study,
            information, or data--
                      (A) has not been submitted to the
                    Administrator; or
                      (B) if submitted to the Administrator, the
                    Administrator has determined must be
                    resubmitted because it is not valid, complete,
                    or adequate to make a determination under
                    section 3(c)(5) and the regulations and
                    guidelines issued under such section.
              (2) Factors.--In making a determination under
            paragraph (1)(B) respecting a study, the Administrator
            shall examine, at a minimum, relevant protocols,
            documentation of the conduct and analysis of the study,
            and the results of the study to determine whether the
            study and the results of the study fulfill the data
            requirement for which the study was submitted to the
            Administrator.
      (gg) To Distribute or Sell.--The term ``to distribute or
    sell'' means to distribute, sell, offer for sale, hold for
    distribution, hold for sale, hold for shipment, ship, deliver
    for shipment, release for shipment, or receive and (having so
    received) deliver or offer to deliver. The term does not
    include the holding or application of registered pesticides or
    use dilutions thereof by any applicator who provides a service
    of controlling pests without delivering any unapplied pesticide
    to any person so served.
      (hh) Nitrogen Stabilizer.--The term ``nitrogen stabilizer''
    means any substance or mixture of substances intended for
    preventing or hindering the process of nitrification,
    denitrification, ammonia volatilization, or urease production
    through action upon soil bacteria. Such term shall not
    include--
              (1) dicyandiamide;
              (2) ammonium thiosulfate; [or]
              (3) any substance or mixture of [substances.]
            substances--
                      (A) that was not registered pursuant to
                    section 3 prior to January 1, 1992; and
                      (B) that was in commercial agronomic use
                    prior to January 1, 1992, with respect to which
                    after January 1, 1992, the distributor or
                    seller of the substance or mixture has made no
                    specific claim of prevention or hindering of
                    the process of nitrification, denitrification,
                    ammonia [volatilization urease] volatilization,
                    or urease production regardless of the actual
                    use or purpose for, or future use or purpose
                    for, the substance or mixture[.];
              (4) a plant biostimulant; or
              (5) a nutritional chemical.
    Statements made in materials required to be submitted to any
    State legislative or regulatory authority, or required by such
    authority to be included in the labeling or other literature
    accompanying any such substance or mixture shall not be deemed
    a specific claim within the meaning of this subsection.
      (jj) Maintenance Applicator.--The term ``maintenance
    applicator'' means any individual who, in the principal course
    of such individual's employment, uses, or supervises the use
    of, a pesticide not classified for restricted use (other than a
    ready to use consumer products pesticide); for the purpose of
    providing structural pest control or lawn pest control
    including janitors, general maintenance personnel, sanitation
    personnel, and grounds maintenance personnel. The term
    ``maintenance applicator'' does not include private applicators
    as defined in section 2(e)(2); individuals who use
    antimicrobial pesticides, sanitizers or disinfectants;
    individuals employed by Federal, State, and local governments
    or any political subdivisions thereof, or individuals who use
    pesticides not classified for restricted use in or around their
    homes, boats, sod farms, nurseries, greenhouses, or other
    noncommercial property.
      (kk) Service Technician.--The term ``service technician''
    means any individual who uses or supervises the use of
    pesticides (other than a ready to use consumer products
    pesticide) for the purpose of providing structural pest control
    or lawn pest control on the property of another for a fee. The
    term ``service technician'' does not include individuals who
    use antimicrobial pesticides, sanitizers or disinfectants; or
    who otherwise apply ready to use consumer products pesticides.
      (ll) Minor Use.--The term ``minor use'' means the use of a
    pesticide on an animal, on a commercial agricultural crop or
    site, or for the protection of public health where--
              (1) the total United States acreage for the crop is
            less than 300,000 acres, as determined by the Secretary
            of Agriculture; or
              (2) the Administrator, in consultation with the
            Secretary of Agriculture, determines that, based on
            information provided by an applicant for registration
            or a registrant, the use does not provide sufficient
            economic incentive to support the initial registration
            or continuing registration of a pesticide for such use
            and--
                      (A) there are insufficient efficacious
                    alternative registered pesticides available for
                    the use;
                      (B) the alternatives to the pesticide use
                    pose greater risks to the environment or human
                    health;
                      (C) the minor use pesticide plays or will
                    play a significant part in managing pest
                    resistance; or
                      (D) the minor use pesticide plays or will
                    play a significant part in an integrated pest
                    management program.
    The status as a minor use under this subsection shall continue
    as long as the Administrator has not determined that, based on
    existing data, such use may cause an unreasonable adverse
    effect on the environment and the use otherwise qualifies for
    such status.
      (mm) Antimicrobial Pesticide.--
              (1) In general.--The term ``antimicrobial pesticide''
            means a pesticide that--
                      (A) is intended to--
                              (i) disinfect, sanitize, reduce, or
                            mitigate growth or development of
                            microbiological organisms; or
                              (ii) protect inanimate objects,
                            industrial processes or systems,
                            surfaces, water, or other chemical
                            substances from contamination, fouling,
                            or deterioration caused by bacteria,
                            viruses, fungi, protozoa, algae, or
                            slime; and
                      (B) in the intended use is exempt from, or
                    otherwise not subject to, a tolerance under
                    section 408 of the Federal Food, Drug, and
                    Cosmetic Act (21 U.S.C. 346a and 348) or a food
                    additive regulation under section 409 of such
                    Act.
              (2) Excluded products.--The term ``antimicrobial
            pesticide'' does not include --
                      (A) a wood preservative or antifouling paint
                    product for which a claim of pesticidal
                    activity other than or in addition to an
                    activity described in paragraph (1) is made;
                      (B) an agricultural fungicide product; or
                      (C) an aquatic herbicide product.
              (3) Included products.--The term ``antimicrobial
            pesticide'' does include any other chemical sterilant
            product (other than liquid chemical sterilant products
            exempt under subsection (u)), any other disinfectant
            product, any other industrial microbiocide product, and
            any other preservative product that is not excluded by
            paragraph (2).
      (nn) Public Health Pesticide.--The term ``public health
    pesticide'' means any minor use pesticide product registered
    for use and used predominantly in public health programs for
    vector control or for other recognized health protection uses,
    including the prevention or mitigation of viruses, bacteria, or
    other microorganisms (other than viruses, bacteria, or other
    microorganisms on or in living man or other living animal) that
    pose a threat to public health.
      (oo) Vector.--The term ``vector'' means any organism capable
    of transmitting the causative agent of human disease or capable
    of producing human discomfort or injury, including mosquitoes,
    flies, fleas, cockroaches, or other insects and ticks, mites,
    or rats.
      (pp) Plant Biostimulant.--The term ``plant biostimulant''
    means any substance or mixture of substances that, when applied
    to seeds, plants, the rhizosphere, or soil or other growth
    media, acts to support a plant's natural nutrition processes
    independently of the nutrient content of that substance or
    mixture of substances, and that thereby improves--
              (1) nutrient availability, uptake, or use efficiency;
              (2) tolerance to abiotic stress; or
              (3) consequent growth, development, quality, or
            yield.
      (qq) Nutritional Chemical.--The term ``nutritional chemical''
    means any substance or mixture of substances that interacts
    with plant nutrients in a manner that improves nutrient
    availability or aids the plant in acquiring or utilizing plant
    nutrients.
      (rr) Vitamin Hormone Product.--The term ``vitamin hormone
    product'' means a product that--
              (1) consists of a mixture of plant hormones, plant
            nutrients, plant inoculants, soil amendments, trace
            elements, nutritional chemicals, plant biostimulants,
            or vitamins that is intended for the improvement,
            maintenance, survival, health, and propagation of
            plants;
              (2) is nontoxic and nonpoisonous in the undiluted
            packaged concentrations of the product; and
              (3) is not intended for use on food crop sites and is
            labeled accordingly.
      (ss) Plant-incorporated Protectant.--
              (1) In general.--The term ``plant-incorporated
            protectant'' means a pesticide that is--
                      (A) intended for preventing, destroying,
                    repelling, or mitigating a pest; and
                      (B) a substance or mixture of substances
                    intended to be produced and used within a
                    living plant, or in the produce thereof, and
                    the genetic material necessary for its
                    production.
              (2) Inclusions.--Such term includes any inert
            ingredient (as defined in section 174.3 of title 40,
            Code of Federal Regulations (or any successor
            regulation)).

    SEC. 3. REGISTRATION OF PESTICIDES.

      (a) Requirement of Registration.--Except as provided by this
    Act, no person in any State may distribute or sell to any
    person any pesticide that is not registered under this Act. To
    the extent necessary to prevent unreasonable adverse effects on
    the environment, the Administrator may by regulation limit the
    distribution, sale, or use in any State of any pesticide that
    is not registered under this Act and that is not the subject of
    an experimental use permit under section 5 or an emergency
    exemption under section 18.
      (b) Exemptions.--A pesticide which is not registered with the
    Administrator may be transferred if--
              (1) the transfer is from one registered establishment
            to another registered establishment operated by the
            same producer solely for packaging at the second
            establishment or for use as a constituent part of
            another pesticide produced at the second establishment;
            or
              (2) the transfer is pursuant to and in accordance
            with the requirements of an experimental use permit.
      (c) Procedure for Registration.--
              (1) Statement required.--Each applicant for
            registration of a pesticide shall file with the
            Administrator a statement which includes--
                      (A) the name and address of the applicant and
                    of any other person whose name will appear on
                    the labeling;
                      (B) the name of the pesticide;
                      (C) a complete copy of the labeling of the
                    pesticide, a statement of all claims to be made
                    for it, and any directions for its use;
                      (D) the complete formula of the pesticide;
                      (E) a request that the pesticide be
                    classified for general use or for restricted
                    use, or for both; and
                      (F) except as otherwise provided in paragraph
                    (2)(D), if requested by the Administrator, a
                    full description of the tests made and the
                    results thereof upon which the claims are
                    based, or alternatively a citation to data that
                    appear in the public literature or that
                    previously had been submitted to the
                    Administrator and that the Administrator may
                    consider in accordance with the following
                    provisions:
                              (i) With respect to pesticides
                            containing active ingredients that are
                            initially registered under this Act
                            after the date of enactment of the
                            Federal Pesticide Act of 1978, data
                            submitted to support the application
                            for the original registration of the
                            pesticide, or an application for an
                            amendment adding any new use to the
                            registration and that pertains solely
                            to such new use, shall not, without the
                            written permission of the original data
                            submitter, be considered by the
                            Administrator to support an application
                            by another person during a period of
                            ten years following the date the
                            Administrator first registers the
                            pesticide, except that such permission
                            shall not be required in the case of
                            defensive data.
                              (ii) The period of exclusive data use
                            provided under clause (i) shall be
                            extended 1 additional year for each 3
                            minor uses registered after the date of
                            enactment of this clause and within 7
                            years of the commencement of the
                            exclusive use period, up to a total of
                            3 additional years for all minor uses
                            registered by the Administrator if the
                            Administrator, in consultation with the
                            Secretary of Agriculture, determines
                            that, based on information provided by
                            an applicant for registration or a
                            registrant, that--
                                      (I) there are insufficient
                                    efficacious alternative
                                    registered pesticides available
                                    for the use;
                                      (II) the alternatives to the
                                    minor use pesticide pose
                                    greater risks to the
                                    environment or human health;
                                      (III) the minor use pesticide
                                    plays or will play a
                                    significant part in managing
                                    pest resistance; or
                                      (IV) the minor use pesticide
                                    plays or will play a
                                    significant part in an
                                    integrated pest management
                                    program.
                            The registration of a pesticide for a
                            minor use on a crop grouping
                            established by the Administrator shall
                            be considered for purposes of this
                            clause 1 minor use for each
                            representative crop for which data are
                            provided in the crop grouping. Any
                            additional exclusive use period under
                            this clause shall be modified as
                            appropriate or terminated if the
                            registrant voluntarily cancels the
                            product or deletes from the
                            registration the minor uses which
                            formed the basis for the extension of
                            the additional exclusive use period or
                            if the Administrator determines that
                            the registrant is not actually
                            marketing the product for such minor
                            uses.
                              (iii) Except as otherwise provided in
                            clause (i), with respect to data
                            submitted after December 31, 1969, by
                            an applicant or registrant to support
                            an application for registration,
                            experimental use permit, or amendment
                            adding a new use to an existing
                            registration, to support or maintain in
                            effect an existing registration, or for
                            reregistration, the Administrator may,
                            without the permission of the original
                            data submitter, consider any such item
                            of data in support of an application by
                            any other person (hereinafter in this
                            subparagraph referred to as the
                            ``applicant'') within the fifteen-year
                            period following the date the data were
                            originally submitted only if the
                            applicant has made an offer to
                            compensate the original data submitter
                            and submitted such offer to the
                            Administrator accompanied by evidence
                            of delivery to the original data
                            submitter of the offer. The terms and
                            amount of compensation may be fixed by
                            agreement between the original data
                            submitter and the applicant, or,
                            failing such agreement, binding
                            arbitration under this subparagraph.
                            If, at the end of ninety days after the
                            date of delivery to the original data
                            submitter of the offer to compensate,
                            the original data submitter and the
                            applicant have neither agreed on the
                            amount and terms of compensation nor on
                            a procedure for reaching an agreement
                            on the amount and terms of
                            compensation, either person may
                            initiate binding arbitration
                            proceedings by requesting the Federal
                            Mediation and Conciliation Service to
                            appoint an arbitrator from the roster
                            of arbitrators maintained by such
                            Service. The procedure and rules of the
                            Service shall be applicable to the
                            selection of such arbitrator and to
                            such arbitration proceedings, and the
                            findings and determination of the
                            arbitrator shall be final and
                            conclusive, and no official or court of
                            the United States shall have power or
                            jurisdiction to review any such
                            findings and determination, except for
                            fraud, misrepresentation, or other
                            misconduct by one of the parties to the
                            arbitration or the arbitrator where
                            there is a verified complaint with
                            supporting affidavits attesting to
                            specific instances of such fraud,
                            misrepresentation, or other misconduct.
                            The parties to the arbitration shall
                            share equally in the payment of the fee
                            and expenses of the arbitrator. If the
                            Administrator determines that an
                            original data submitter has failed to
                            participate in a procedure for reaching
                            an agreement or in an arbitration
                            proceeding as required by this
                            subparagraph, or failed to comply with
                            the terms of an agreement or
                            arbitration decision concerning
                            compensation under this subparagraph,
                            the original data submitter shall
                            forfeit the right to compensation for
                            the use of the data in support of the
                            application. Notwithstanding any other
                            provision of this Act, if the
                            Administrator determines that an
                            applicant has failed to participate in
                            a procedure for reaching an agreement
                            or in an arbitration proceeding as
                            required by this subparagraph, or
                            failed to comply with the terms of an
                            agreement or arbitration decision
                            concerning compensation under this
                            subparagraph, the Administrator shall
                            deny the application or cancel the
                            registration of the pesticide in
                            support of which the data were used
                            without further hearing. Before the
                            Administrator takes action under either
                            of the preceding two sentences, the
                            Administrator shall furnish to the
                            affected person, by certified mail,
                            notice of intent to take action and
                            allow fifteen days from the date of
                            delivery of the notice for the affected
                            person to respond. If a registration is
                            denied or canceled under this
                            subparagraph, the Administrator may
                            make such order as the Administrator
                            deems appropriate concerning the
                            continued sale and use of existing
                            stocks of such pesticide. Registration
                            action by the Administrator shall not
                            be delayed pending the fixing of
                            compensation.
                              (iv) After expiration of any period
                            of exclusive use and any period for
                            which compensation is required for the
                            use of an item of data under clauses
                            (i), (ii), and (iii), the Administrator
                            may consider such item of data in
                            support of an application by any other
                            applicant without the permission of the
                            original data submitter and without an
                            offer having been received to
                            compensate the original data submitter
                            for the use of such item of data.
                              (v) The period of exclusive use
                            provided under clause (ii) shall not
                            take effect until 1 year after
                            enactment of this clause, except where
                            an applicant or registrant is applying
                            for the registration of a pesticide
                            containing an active ingredient not
                            previously registered.
                              (vi) With respect to data submitted
                            after the date of enactment of this
                            clause by an applicant or registrant to
                            support an amendment adding a new use
                            to an existing registration that does
                            not retain any period of exclusive use,
                            if such data relates solely to a minor
                            use of a pesticide, such data shall
                            not, without the written permission of
                            the original data submitter, be
                            considered by the Administrator to
                            support an application for a minor use
                            by another person during the period of
                            10 years following the date of
                            submission of such data. The applicant
                            or registrant at the time the new minor
                            use is requested shall notify the
                            Administrator that to the best of their
                            knowledge the exclusive use period for
                            the pesticide has expired and that the
                            data pertaining solely to the minor use
                            of a pesticide is eligible for the
                            provisions of this paragraph. If the
                            minor use registration which is
                            supported by data submitted pursuant to
                            this subsection is voluntarily canceled
                            or if such data are subsequently used
                            to support a nonminor use, the data
                            shall no longer be subject to the
                            exclusive use provisions of this clause
                            but shall instead be considered by the
                            Administrator in accordance with the
                            provisions of clause (i), as
                            appropriate.
                      (G) If the applicant is requesting that the
                    registration or amendment to the registration
                    of a pesticide be expedited, an explanation of
                    the basis for the request must be submitted, in
                    accordance with paragraph (10) of this
                    subsection.
              (2) Data in support of registration.--
                      (A) In general.--The Administrator shall
                    publish guidelines specifying the kinds of
                    information which will be required to support
                    the registration of a pesticide and shall
                    revise such guidelines from time to time. If
                    thereafter the Administrator requires any
                    additional kind of information under
                    subparagraph (B) of this paragraph, the
                    Administrator shall permit sufficient time for
                    applicants to obtain such additional
                    information. The Administrator, in establishing
                    standards for data requirements for the
                    registration of pesticides with respect to
                    minor uses, shall make such standards
                    commensurate with the anticipated extent of
                    use, pattern of use, the public health and
                    agricultural need for such minor use, and the
                    level and degree of potential beneficial or
                    adverse effects on man and the environment. The
                    Administrator shall not require a person to
                    submit, in relation to a registration or
                    reregistration of a pesticide for minor
                    agricultural use under this Act, any field
                    residue data from a geographic area where the
                    pesticide will not be registered for such use.
                    In the development of these standards, the
                    Administrator shall consider the economic
                    factors of potential national volume of use,
                    extent of distribution, and the impact of the
                    cost of meeting the requirements on the
                    incentives for any potential registrant to
                    undertake the development of the required data.
                    Except as provided by section 10, within 30
                    days after the Administrator registers a
                    pesticide under this Act the Administrator
                    shall make available to the public the data
                    called for in the registration statement
                    together with such other scientific information
                    as the Administrator deems relevant to the
                    Administrator's decision.
                      (B) Additional data.--(i) If the
                    Administrator determines that additional data
                    are required to maintain in effect an existing
                    registration of a pesticide, the Administrator
                    shall notify all existing registrants of the
                    pesticide to which the determination relates
                    and provide a list of such registrants to any
                    interested person.
                      (ii) Each registrant of such pesticide shall
                    provide evidence within ninety days after
                    receipt of notification that it is taking
                    appropriate steps to secure the additional data
                    that are required. Two or more registrants may
                    agree to develop jointly, or to share in the
                    cost of developing, such data if they agree and
                    advise the Administrator of their intent within
                    ninety days after notification. Any registrant
                    who agrees to share in the cost of producing
                    the data shall be entitled to examine and rely
                    upon such data in support of maintenance of
                    such registration. The Administrator shall
                    issue a notice of intent to suspend the
                    registration of a pesticide in accordance with
                    the procedures prescribed by clause (iv) if a
                    registrant fails to comply with this clause.
                      (iii) If, at the end of sixty days after
                    advising the Administrator of their agreement
                    to develop jointly, or share in the cost of
                    developing data, the registrants have not
                    further agreed on the terms of the data
                    development arrangement or on a procedure for
                    reaching such agreement, any of such
                    registrants may initiate binding arbitration
                    proceedings by requesting the Federal Mediation
                    and Conciliation Service to appoint an
                    arbitrator from the roster of arbitrators
                    maintained by such Service. The procedure and
                    rules of the Service shall be applicable to the
                    selection of such arbitrator and to such
                    arbitration proceedings, and the findings and
                    determination of the arbitrator shall be final
                    and conclusive, and no official or court of the
                    United States shall have power or jurisdiction
                    to review any such findings and determination,
                    except for fraud, misrepresentation, or other
                    misconduct by one of the parties to the
                    arbitration or the arbitrator where there is a
                    verified complaint with supporting affidavits
                    attesting to specific instances of such fraud,
                    misrepresentation, or other misconduct. All
                    parties to the arbitration shall share equally
                    in the payment of the fee and expenses of the
                    arbitrator. The Administrator shall issue a
                    notice of intent to suspend the registration of
                    a pesticide in accordance with the procedures
                    prescribed by clause (iv) if a registrant fails
                    to comply with this clause.
                      (iv) Notwithstanding any other provision of
                    this Act, if the Administrator determines that
                    a registrant, within the time required by the
                    Administrator, has failed to take appropriate
                    steps to secure the data required under this
                    subparagraph, to participate in a procedure for
                    reaching agreement concerning a joint data
                    development arrangement under this subparagraph
                    or in an arbitration proceeding as required by
                    this subparagraph, or to comply with the terms
                    of an agreement or arbitration decision
                    concerning a joint data development arrangement
                    under this subparagraph, the Administrator may
                    issue a notice of intent to suspend such
                    registrant's registration of the pesticide for
                    which additional data is required. The
                    Administrator may include in the notice of
                    intent to suspend such provisions as the
                    Administrator deems appropriate concerning the
                    continued sale and use of existing stocks of
                    such pesticide. Any suspension proposed under
                    this subparagraph shall become final and
                    effective at the end of thirty days from
                    receipt by the registrant of the notice of
                    intent to suspend, unless during that time a
                    request for hearing is made by a person
                    adversely affected by the notice or the
                    registrant has satisfied the Administrator that
                    the registrant has complied fully with the
                    requirements that served as a basis for the
                    notice of intent to suspend. If a hearing is
                    requested, a hearing shall be conducted under
                    section 6(d) of this Act. The only matters for
                    resolution at that hearing shall be whether the
                    registrant has failed to take the action that
                    served as the basis for the notice of intent to
                    suspend the registration of the pesticide for
                    which additional data is required, and whether
                    the Administrator's determination with respect
                    to the disposition of existing stocks is
                    consistent with this Act. If a hearing is held,
                    a decision after completion of such hearing
                    shall be final. Notwithstanding any other
                    provision of this Act, a hearing shall be held
                    and a determination made within seventy-five
                    days after receipt of a request for such
                    hearing. Any registration suspended under this
                    subparagraph shall be reinstated by the
                    Administrator if the Administrator determines
                    that the registrant has complied fully with the
                    requirements that served as a basis for the
                    suspension of the registration.
                      (v) Any data submitted under this
                    subparagraph shall be subject to the provisions
                    of paragraph (1)(D). Whenever such data are
                    submitted jointly by two or more registrants,
                    an agent shall be agreed on at the time of the
                    joint submission to handle any subsequent data
                    compensation matters for the joint submitters
                    of such data.
                      (vi) Upon the request of a registrant the
                    Administrator shall, in the case of a minor
                    use, extend the deadline for the production of
                    residue chemistry data under this subparagraph
                    for data required solely to support that minor
                    use until the final deadline for submission of
                    data under section 4 for the other uses of the
                    pesticide established as of the date of
                    enactment of the Food Quality Protection Act of
                    1996, if--
                              (I) the data to support other uses of
                            the pesticide on a food are being
                            provided;
                              (II) the registrant, in submitting a
                            request for such an extension, provides
                            a schedule, including interim dates to
                            measure progress, to assure that the
                            data production will be completed
                            before the expiration of the extension
                            period;
                              (III) the Administrator has
                            determined that such extension will not
                            significantly delay the Administrator's
                            schedule for issuing a reregistration
                            eligibility determination required
                            under section 4; and
                              (IV) the Administrator has determined
                            that based on existing data, such
                            extension would not significantly
                            increase the risk of any unreasonable
                            adverse effect on the environment. If
                            the Administrator grants an extension
                            under this clause, the Administrator
                            shall monitor the development of the
                            data and shall ensure that the
                            registrant is meeting the schedule for
                            the production of the data. If the
                            Administrator determines that the
                            registrant is not meeting or has not
                            met the schedule for the production of
                            such data, the Administrator may
                            proceed in accordance with clause (iv)
                            regarding the continued registration of
                            the affected products with the minor
                            use and shall inform the public of such
                            action. Notwithstanding the provisions
                            of this clause, the Administrator may
                            take action to modify or revoke the
                            extension under this clause if the
                            Administrator determines that the
                            extension for the minor use may cause
                            an unreasonable adverse effect on the
                            environment. In such circumstance, the
                            Administrator shall provide, in writing
                            to the registrant, a notice revoking
                            the extension of time for submission of
                            data. Such data shall instead be due in
                            accordance with the date established by
                            the Administrator for the submission of
                            the data.
                      (vii) If the registrant does not commit to
                    support a specific minor use of the pesticide,
                    but is supporting and providing data in a
                    timely and adequate fashion to support uses of
                    the pesticide on a food, or if all uses of the
                    pesticide are nonfood uses and the registrant
                    does not commit to support a specific minor use
                    of the pesticide but is supporting and
                    providing data in a timely and adequate fashion
                    to support other nonfood uses of the pesticide,
                    the Administrator, at the written request of
                    the registrant, shall not take any action
                    pursuant to this clause in regard to such
                    unsupported minor use until the final deadline
                    established as of the date of enactment of the
                    Food Quality Protection Act of 1996, for the
                    submission of data under section 4 for the
                    supported uses identified pursuant to this
                    clause unless the Administrator determines that
                    the absence of the data is significant enough
                    to cause human health or environmental
                    concerns. On the basis of such determination,
                    the Administrator may refuse the request for
                    extension by the registrant. Upon receipt of
                    the request from the registrant, the
                    Administrator shall publish in the Federal
                    Register a notice of the receipt of the request
                    and the effective date upon which the uses not
                    being supported will be voluntarily deleted
                    from the registration pursuant to section
                    6(f)(1). If the Administrator grants an
                    extension under this clause, the Administrator
                    shall monitor the development of the data for
                    the uses being supported and shall ensure that
                    the registrant is meeting the schedule for the
                    production of such data. If the Administrator
                    determines that the registrant is not meeting
                    or has not met the schedule for the production
                    of such data, the Administrator may proceed in
                    accordance with clause (iv) of this
                    subparagraph regarding the continued
                    registration of the affected products with the
                    minor and other uses and shall inform the
                    public of such action in accordance with
                    section 6(f)(2). Notwithstanding the provisions
                    of this clause, the Administrator may deny,
                    modify, or revoke the temporary extension under
                    this subparagraph if the Administrator
                    determines that the continuation of the minor
                    use may cause an unreasonable adverse effect on
                    the environment. In the event of modification
                    or revocation, the Administrator shall provide,
                    in writing, to the registrant a notice revoking
                    the temporary extension and establish a new
                    effective date by which the minor use shall be
                    deleted from the registration.
                      (viii)(I) If data required to support
                    registration of a pesticide under subparagraph
                    (A) is requested by a Federal or State
                    regulatory authority, the Administrator shall,
                    to the extent practicable, coordinate data
                    requirements, test protocols, timetables, and
                    standards of review and reduce burdens and
                    redundancy caused to the registrant by multiple
                    requirements on the registrant.
                      (II) The Administrator may enter into a
                    cooperative agreement with a State to carry out
                    subclause (I).
                      (III) Not later than 1 year after the date of
                    enactment of this clause, the Administrator
                    shall develop a process to identify and assist
                    in alleviating future disparities between
                    Federal and State data requirements.
                      (C) Simplified procedures.--Within nine
                    months after the date of enactment of this
                    subparagraph, the Administrator shall, by
                    regulation, prescribe simplified procedures for
                    the registration of pesticides, which shall
                    include the provisions of subparagraph (D) of
                    this paragraph.
                      (D) Exemption.--No applicant for registration
                    of a pesticide who proposes to purchase a
                    registered pesticide from another producer in
                    order to formulate such purchased pesticide
                    into the pesticide that is the subject of the
                    application shall be required to--
                              (i) submit or cite data pertaining to
                            such purchased product; or
                              (ii) offer to pay reasonable
                            compensation otherwise required by
                            paragraph (1)(D) of this subsection for
                            the use of any such data.
                      (E) Minor use waiver.--In handling the
                    registration of a pesticide for a minor use,
                    the Administrator may waive otherwise
                    applicable data requirements if the
                    Administrator determines that the absence of
                    such data will not prevent the Administrator
                    from determining--
                              (i) the incremental risk presented by
                            the minor use of the pesticide; and
                              (ii) that such risk, if any, would
                            not be an unreasonable adverse effect
                            on the environment.
              (3) Time for acting with respect to Application.--
                      (A) In general.--The Administrator shall
                    review the data after receipt of the
                    application and shall, as expeditiously as
                    possible, either register the pesticide in
                    accordance with paragraph (5), or notify the
                    applicant of the Administrator's determination
                    that it does not comply with the provisions of
                    the Act in accordance with paragraph (6).
                      (B) Identical or substantially similar.--(i)
                    The Administrator shall, as expeditiously as
                    possible, review and act on any application
                    received by the Administrator that--
                              (I) proposes the initial or amended
                            registration of an end-use pesticide
                            that, if registered as proposed, would
                            be identical or substantially similar
                            in composition and labeling to a
                            currently-registered pesticide
                            identified in the application, or that
                            would differ in composition and
                            labeling from such currently-registered
                            pesticide only in ways that would not
                            significantly increase the risk of
                            unreasonable adverse effects on the
                            environment; or
                              (II) proposes an amendment to the
                            registration of a registered pesticide
                            that does not require scientific review
                            of data.
                      (ii) In expediting the review of an
                    application for an action described in clause
                    (i), the Administrator shall--
                              (I) review the application in
                            accordance with section 33(f)(4)(B)
                            and, if the application is found to be
                            incomplete, reject the application;
                              (II) not later than the applicable
                            decision review time established
                            pursuant to section 33(f)(4)(B), or, if
                            no review time is established, not
                            later than 90 days after receiving a
                            complete application, notify the
                            registrant if the application has been
                            granted or denied; and
                              (III) if the application is denied,
                            notify the registrant in writing of the
                            specific reasons for the denial of the
                            application.
                      (C) Minor use registration.--
                              (i) The Administrator shall, as
                            expeditiously as possible, review and
                            act on any complete application--
                                      (I) that proposes the initial
                                    registration of a new pesticide
                                    active ingredient if the active
                                    ingredient is proposed to be
                                    registered solely for minor
                                    uses, or proposes a
                                    registration amendment solely
                                    for minor uses to an existing
                                    registration; or
                                      (II) for a registration or a
                                    registration amendment that
                                    proposes significant minor
                                    uses.
                              (ii) For the purposes of clause (i)--
                                      (I) the term ``as
                                    expeditiously as possible''
                                    means that the Administrator
                                    shall, to the greatest extent
                                    practicable, complete a review
                                    and evaluation of all data,
                                    submitted with a complete
                                    application, within 12 months
                                    after the submission of the
                                    complete application, and the
                                    failure of the Administrator to
                                    complete such a review and
                                    evaluation under clause (i)
                                    shall not be subject to
                                    judicial review; and
                                      (II) the term ``significant
                                    minor uses'' means 3 or more
                                    minor uses proposed for every
                                    nonminor use, a minor use that
                                    would, in the judgment of the
                                    Administrator, serve as a
                                    replacement for any use which
                                    has been canceled in the 5
                                    years preceding the receipt of
                                    the application, or a minor use
                                    that in the opinion of the
                                    Administrator would avoid the
                                    reissuance of an emergency
                                    exemption under section 18 for
                                    that minor use.
                      (D) Adequate time for submission of minor use
                    data.--If a registrant makes a request for a
                    minor use waiver, regarding data required by
                    the Administrator, pursuant to paragraph
                    (2)(E), and if the Administrator denies in
                    whole or in part such data waiver request, the
                    registrant shall have a full-time period for
                    providing such data. For purposes of this
                    subparagraph, the term ``full-time period''
                    means the time period originally established by
                    the Administrator for submission of such data,
                    beginning with the date of receipt by the
                    registrant of the Administrator's notice of
                    denial.
              (4) Notice of application.--The Administrator shall
            publish in the Federal Register, promptly after receipt
            of the statement and other data required pursuant to
            paragraphs (1) and (2), a notice of each application
            for registration of any pesticide if it contains any
            new active ingredient or if it would entail a changed
            use pattern. The notice shall provide for a period of
            30 days in which any Federal agency or any other
            interested person may comment.
              (5) Approval of registration.--The Administrator
            shall register a pesticide if the Administrator
            determines that, when considered with any restrictions
            imposed under subsection (d)--
                      (A) its composition is such as to warrant the
                    proposed claims for it;
                      (B) its labeling and other material required
                    to be submitted comply with the requirements of
                    this Act;
                      (C) it will perform its intended function
                    without unreasonable adverse effects on the
                    environment; and
                      (D) when used in accordance with widespread
                    and commonly recognized practice it will not
                    generally cause unreasonable adverse effects on
                    the environment.
            The Administrator shall not make any lack of
            essentiality a criterion for denying registration of
            any pesticide. Where two pesticides meet the
            requirements of this paragraph, one should not be
            registered in preference to the other. In considering
            an application for the registration of a pesticide, the
            Administrator may waive data requirements pertaining to
            efficacy, in which event the Administrator may register
            the pesticide without determining that the pesticide's
            composition is such as to warrant proposed claims of
            efficacy. If a pesticide is found to be efficacious by
            any State under section 24(c) of this Act, a
            presumption is established that the Administrator shall
            waive data requirements pertaining to efficacy for use
            of the pesticide in such State.
              (6) Denial of registration.--If the Administrator
            determines that the requirements of paragraph (5) for
            registration are not satisfied, the Administrator shall
            notify the applicant for registration of the
            Administrator's determination and of the
            Administrator's reasons (including the factual basis)
            therefor, and that, unless the applicant corrects the
            conditions and notifies the Administrator thereof
            during the 30-day period beginning with the day after
            the date on which the applicant receives the notice,
            the Administrator may refuse to register the pesticide.
            Whenever the Administrator refuses to register a
            pesticide, the Administrator shall notify the applicant
            of the Administrator's decision and of the
            Administrator's reasons (including the factual basis)
            therefor. The Administrator shall promptly publish in
            the Federal Register notice of such denial of
            registration and the reasons therefor. Upon such
            notification, the applicant for registration or other
            interested person with the concurrence of the applicant
            shall have the same remedies as provided for in section
            6.
              (7) Registration under special circumstances.--
            Notwithstanding the provisions of paragraph (5)--
                      (A) The Administrator may conditionally
                    register or amend the registration of a
                    pesticide if the Administrator determines that
                    (i) the pesticide and proposed use are
                    identical or substantially similar to any
                    currently registered pesticide and use thereof,
                    or differ only in ways that would not
                    significantly increase the risk of unreasonable
                    adverse effects on the environment, and (ii)
                    approving the registration or amendment in the
                    manner proposed by the applicant would not
                    significantly increase the risk of any
                    unreasonable adverse effect on the environment.
                    An applicant seeking conditional registration
                    or amended registration under this subparagraph
                    shall submit such data as would be required to
                    obtain registration of a similar pesticide
                    under paragraph (5). If the applicant is unable
                    to submit an item of data because it has not
                    yet been generated, the Administrator may
                    register or amend the registration of the
                    pesticide under such conditions as will require
                    the submission of such data not later than the
                    time such data are required to be submitted
                    with respect to similar pesticides already
                    registered under this Act.
                      (B) The Administrator may conditionally amend
                    the registration of a pesticide to permit
                    additional uses of such pesticide
                    notwithstanding that data concerning the
                    pesticide may be insufficient to support an
                    unconditional amendment, if the Administrator
                    determines that (i) the applicant has submitted
                    satisfactory data pertaining to the proposed
                    additional use, and (ii) amending the
                    registration in the manner proposed by the
                    applicant would not significantly increase the
                    risk of any unreasonable adverse effect on the
                    environment. Notwithstanding the foregoing
                    provisions of this subparagraph, no
                    registration of a pesticide may be amended to
                    permit an additional use of such pesticide if
                    the Administrator has issued a notice stating
                    that such pesticide, or any ingredient thereof,
                    meets or exceeds risk criteria associated in
                    whole or in part with human dietary exposure
                    enumerated in regulations issued under this
                    Act, and during the pendency of any risk-
                    benefit evaluation initiated by such notice, if
                    (I) the additional use of such pesticide
                    involves a major food or feed crop, or (II) the
                    additional use of such pesticide involves a
                    minor food or feed crop and the Administrator
                    determines, with the concurrence of the
                    Secretary of Agriculture, there is available an
                    effective alternative pesticide that does not
                    meet or exceed such risk criteria. An applicant
                    seeking amended registration under this
                    subparagraph shall submit such data as would be
                    required to obtain registration of a similar
                    pesticide under paragraph (5). If the applicant
                    is unable to submit an item of data (other than
                    data pertaining to the proposed additional use)
                    because it has not yet been generated, the
                    Administrator may amend the registration under
                    such conditions as will require the submission
                    of such data not later than the time such data
                    are required to be submitted with respect to
                    similar pesticides already registered under
                    this Act.
                      (C) The Administrator may conditionally
                    register a pesticide containing an active
                    ingredient not contained in any currently
                    registered pesticide for a period reasonably
                    sufficient for the generation and submission of
                    required data (which are lacking because a
                    period reasonably sufficient for generation of
                    the data has not elapsed since the
                    Administrator first imposed the data
                    requirement) on the condition that by the end
                    of such period the Administrator receives such
                    data and the data do not meet or exceed risk
                    criteria enumerated in regulations issued under
                    this Act, and on such other conditions as the
                    Administrator may prescribe. A conditional
                    registration under this subparagraph shall be
                    granted only if the Administrator determines
                    that use of the pesticide during such period
                    will not cause any unreasonable adverse effect
                    on the environment, and that use of the
                    pesticide is in the public interest.
              (8) Interim administrative review.--Notwithstanding
            any other provision of this Act, the Administrator may
            not initiate a public interim administrative review
            process to develop a risk-benefit evaluation of the
            ingredients of a pesticide or any of its uses prior to
            initiating a formal action to cancel, suspend, or deny
            registration of such pesticide, required under this
            Act, unless such interim administrative process is
            based on a validated test or other significant evidence
            raising prudent concerns of unreasonable adverse risk
            to man or to the environment. Notice of the definition
            of the terms ``validated test'' and ``other significant
            evidence'' as used herein shall be published by the
            Administrator in the Federal Register.
              (9) Labeling.--
                      (A) Additional statements.--Subject to
                    subparagraphs (B) and (C), it shall not be a
                    violation of this Act for a registrant to
                    modify the labeling of an antimicrobial
                    pesticide product to include relevant
                    information on product efficacy, product
                    composition, container composition or design,
                    or other characteristics that do not relate to
                    any pesticidal claim or pesticidal activity.
                      (B) Requirements.--Proposed labeling
                    information under subparagraph (A) shall not be
                    false or misleading, shall not conflict with or
                    detract from any statement required by law or
                    the Administrator as a condition of
                    registration, and shall be substantiated on the
                    request of the Administrator.
                      (C) Notification and disapproval.--
                              (i) Notification.--A registration may
                            be modified under subparagraph (A) if
                            --
                                      (I) the registrant notifies
                                    the Administrator in writing
                                    not later than 60 days prior to
                                    distribution or sale of a
                                    product bearing the modified
                                    labeling; and
                                      (II) the Administrator does
                                    not disapprove of the
                                    modification under clause (ii).
                              (ii) Disapproval.--Not later than 30
                            days after receipt of a notification
                            under clause (i), the Administrator may
                            disapprove the modification by sending
                            the registrant notification in writing
                            stating that the proposed language is
                            not acceptable and stating the reasons
                            why the Administrator finds the
                            proposed modification unacceptable.
                              (iii) Restriction on sale.--A
                            registrant may not sell or distribute a
                            product bearing a disapproved
                            modification.
                              (iv) Objection.--A registrant may
                            file an objection in writing to a
                            disapproval under clause (ii) not later
                            than 30 days after receipt of
                            notification of the disapproval.
                              (v) Final action.--A decision by the
                            Administrator following receipt and
                            consideration of an objection filed
                            under clause (iv) shall be considered a
                            final agency action.
                      (D) Use dilution.--The label or labeling
                    required under this Act for an antimicrobial
                    pesticide that is or may be diluted for use may
                    have a different statement of caution or
                    protective measures for use of the recommended
                    diluted solution of the pesticide than for use
                    of a concentrate of the pesticide if the
                    Administrator determines that --
                              (i) adequate data have been submitted
                            to support the statement proposed for
                            the diluted solution uses; and
                              (ii) the label or labeling provides
                            adequate protection for exposure to the
                            diluted solution of the pesticide.
              (10) Expedited registration of pesticides.--
                      (A) Not later than 1 year after the date of
                    enactment of this paragraph, the Administrator
                    shall, utilizing public comment, develop
                    procedures and guidelines, and expedite the
                    review of an application for registration of a
                    pesticide or an amendment to a registration
                    that satisfies such guidelines.
                      (B) Any application for registration or an
                    amendment, including biological and
                    conventional pesticides, will be considered for
                    expedited review under this paragraph. An
                    application for registration or an amendment
                    shall qualify for expedited review if use of
                    the pesticide proposed by the application may
                    reasonably be expected to accomplish 1 or more
                    of the following:
                              (i) Reduce the risks of pesticides to
                            human health.
                              (ii) Reduce the risks of pesticides
                            to nontarget organisms.
                              (iii) Reduce the potential for
                            contamination of groundwater, surface
                            water, or other valued environmental
                            resources.
                              (iv) Broaden the adoption of
                            integrated pest management strategies,
                            or make such strategies more available
                            or more effective.
                      (C) The Administrator, not later than 30 days
                    after receipt of an application for expedited
                    review, shall notify the applicant whether the
                    application is complete. If it is found to be
                    incomplete, the Administrator may either reject
                    the request for expedited review or ask the
                    applicant for additional information to satisfy
                    the guidelines developed under subparagraph
                    (A).
              (11) Interagency working group.--
                      (A) Definition of covered agency.--In this
                    paragraph, the term ``covered agency'' means
                    any of the following:
                              (i) The Department of Agriculture.
                              (ii) The Department of Commerce.
                              (iii) The Department of the Interior.
                              (iv) The Council on Environmental
                            Quality.
                              (v) The Environmental Protection
                            Agency.
                      (B) Establishment.--[The Administrator shall]
                              (i) In general._The Administrator
                            shall  establish an interagency working
                            group, to be comprised of
                            representatives from each covered
                            agency, to provide recommendations
                            regarding, and to implement a strategy
                            for improving, the consultation process
                            required under section 7 of the
                            Endangered Species Act of 1973 (16
                            U.S.C. 1536) for pesticide registration
                            and registration review.
                              (ii) Participation.--The Secretary of
                            Agriculture shall include the Director
                            of the Office of Pest Management Policy
                            in all meetings of the interagency
                            working group.
                      (C) Duties.--The interagency working group
                    established under subparagraph (B) shall--
                              (i) analyze relevant Federal law
                            (including regulations) and case law
                            for purposes of providing an outline of
                            the legal and regulatory framework for
                            the consultation process referred to in
                            that subparagraph, including--
                                      (I) requirements under this
                                    Act and the Endangered Species
                                    Act of 1973 (16 U.S.C. 1531 et
                                    seq.);
                                      (II) Federal case law
                                    regarding the intersection of
                                    this Act and the Endangered
                                    Species Act of 1973 (16 U.S.C.
                                    1531 et seq.); and
                                      (III) Federal regulations
                                    relating to the pesticide
                                    consultation process;
                              (ii) provide advice regarding methods
                            of--
                                      (I) defining the scope of
                                    actions of the covered agencies
                                    that are subject to the
                                    consultation requirement
                                    referred to in subparagraph
                                    (B); and
                                      (II) properly identifying and
                                    classifying effects of actions
                                    of the covered agencies with
                                    respect to that consultation
                                    requirement;
                              (iii) identify the obligations and
                            limitations under Federal law of each
                            covered agency for purposes of
                            providing a legal and regulatory
                            framework for developing the
                            recommendations referred to in
                            subparagraph (B);
                              (iv) review practices for the
                            consultation referred to in
                            subparagraph (B) to identify problem
                            areas, areas for improvement, and best
                            practices for conducting that
                            consultation among the covered
                            agencies;
                              (v) develop scientific and policy
                            approaches to increase the accuracy and
                            timeliness of the process for that
                            consultation, in accordance with
                            requirements of this Act and the
                            Endangered Species Act of 1973 (16
                            U.S.C. 1531 et seq.), including--
                                      (I) processes to efficiently
                                    share data and coordinate
                                    analyses among the Department
                                    of Agriculture, the Department
                                    of Commerce, the Department of
                                    the Interior, and the
                                    Environmental Protection
                                    Agency;
                                      (II) a streamlined process
                                    for identifying which actions
                                    require no consultation,
                                    informal consultation, or
                                    formal consultation;
                                      (III) an approach that will
                                    provide clarity with respect to
                                    what constitutes the best
                                    scientific and commercial data
                                    available in the fields of
                                    pesticide use and ecological
                                    risk assessment, pursuant to
                                    section 7(a)(2) of the
                                    Endangered Species Act of 1973
                                    (16 U.S.C. 1536(a)(2)); and
                                      (IV) approaches that enable
                                    the Environmental Protection
                                    Agency to better assist the
                                    Department of the Interior and
                                    the Department of Commerce in
                                    carrying out obligations under
                                    that section in a timely and
                                    efficient manner; and
                              (vi) propose and implement a strategy
                            to implement approaches to
                            consultations under the Endangered
                            Species Act of 1973 (16 U.S.C. 1531 et
                            seq.) and document that strategy in a
                            memorandum of understanding, revised
                            regulations, or another appropriate
                            format to promote durable cooperation
                            among the covered agencies.
                      (D) Reports.--
                              (i) Progress reports.--
                                      (I) In general.--Not later
                                    than 18 months after the date
                                    of enactment of this paragraph,
                                    the Administrator, in
                                    coordination with the head of
                                    each other covered 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 describing the
                                    progress of the working group
                                    in developing the
                                    recommendations under
                                    subparagraph (B).
                                      (II) Requirements.--The
                                    report under this clause
                                    shall--
                                              (aa) reflect the
                                            perspectives of each
                                            covered agency; and
                                              (bb) identify areas
                                            of new consensus and
                                            continuing topics of
                                            disagreement and
                                            debate.
                              (ii) Results.--
                                      (I) In general.--Not later
                                    than 1 year after the date of
                                    enactment of this paragraph,
                                    the Administrator, in
                                    coordination with the head of
                                    each other covered 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 describing--
                                              (aa) the
                                            recommendations
                                            developed under
                                            subparagraph (B); and
                                              (bb) plans for
                                            implementation of those
                                            recommendations.
                                      (II) Requirements.--The
                                    report under this clause
                                    shall--
                                              (aa) reflect the
                                            perspectives of each
                                            covered agency; and
                                              (bb) identify areas
                                            of consensus and
                                            continuing topics of
                                            disagreement and
                                            debate, if any.
                              (iii) Implementation.--Not later than
                            1 year after the date of submission of
                            the report under clause (i), the
                            Administrator, in coordination with the
                            head of each other covered 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 describing--
                                      (I) the implementation of the
                                    recommendations referred to in
                                    that clause;
                                      (II) the extent to which that
                                    implementation improved the
                                    consultation process referred
                                    to in subparagraph (B); and
                                      (III) any additional
                                    recommendations for
                                    improvements to the process
                                    described in subparagraph (B).
                              (iv) Other reports.--Not later than
                            the date that is 180 days after the
                            date of submission of the report under
                            clause (iii), and not less frequently
                            than once [every 180 days thereafter]
                            each year thereafter [during the 5-year
                            period beginning on that date], the
                            Administrator, in coordination with the
                            head of each other covered 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 describing--
                                      (I) the implementation of the
                                    recommendations referred to in
                                    that clause;
                                      (II) the extent to which that
                                    implementation improved the
                                    consultation process referred
                                    to in subparagraph (B); and
                                      (III) any additional
                                    recommendations for
                                    improvements to the process
                                    described in subparagraph (B).
                              (v) Availability.--All reports
                            required under this subparagraph shall
                            be published on the website of the
                            Environmental Protection Agency.
                      [(E) Consultation with private sector.--In
                    carrying out the duties under this paragraph,
                    the working group shall, as appropriate--
                              [(i) consult with, representatives of
                            interested industry stakeholders and
                            nongovernmental organizations; and
                              [(ii) take into consideration
                            factors, such as actual and potential
                            differences in interest between, and
                            the views of, those stakeholders and
                            organizations.]
                      (E) Consultation.--
                              (i) Working group with private
                            sector.--In carrying out the duties
                            under this paragraph, the working group
                            shall, as appropriate--
                                      (I) consult, including
                                    through public meetings, with
                                    representatives of interested
                                    industry stakeholders and
                                    nongovernmental organizations
                                    not less than once every year;
                                    and
                                      (II) take into consideration
                                    factors, such as actual and
                                    potential differences in
                                    interest between, and the views
                                    of, those stakeholders and
                                    organizations.
                              (ii) Administrator with working
                            group.--Before the Administrator
                            implements any policy, strategy,
                            workplan, or pilot program regarding
                            the application of the Endangered
                            Species Act of 1973 (16 U.S.C. 1531 et
                            seq.) to the processes for the
                            registration or registration review of
                            a pesticide under this Act, the
                            Administrator shall--
                                      (I) consult with the covered
                                    agencies on the policy,
                                    strategy, workplan, or pilot
                                    program and take into
                                    consideration input received;
                                    and
                                      (II) publish the input
                                    received from the covered
                                    agencies in the docket with the
                                    corresponding policy, strategy,
                                    workplan, or pilot program.
                      (F) Chapter 10 of title 5, united states
                    code.--Chapter 10 of title 5, United States
                    Code, shall not apply to the working group
                    established under this paragraph.
                      (G) Savings clause.--Nothing in this
                    paragraph supersedes any provision of--
                              (i) this Act; or
                              (ii) the Endangered Species Act of
                            1973 (16 U.S.C. 1531 et seq.),
                            including the requirements under
                            section 7 of that Act (16 U.S.C. 1536).
      (d) Classification of Pesticides.--
              (1) Classification for general use, restricted use,
            or both.--
                      (A) As a part of the registration of a
                    pesticide the Administrator shall classify it
                    as being for general use or for restricted use.
                    If the Administrator determines that some of
                    the uses for which the pesticide is registered
                    should be for general use and that other uses
                    for which it is registered should be for
                    restricted use, the Administrator shall
                    classify it for both general use and restricted
                    use. Pesticide uses may be classified by
                    regulation on the initial classification and
                    registered pesticides may be classified prior
                    to reregistration. If some of the uses of the
                    pesticide are classified for general use and
                    other uses are classified for restricted use,
                    the directions relating to its general uses
                    shall be clearly separated and distinguished
                    from those directions relating to its
                    restricted uses. The Administrator may require
                    that its packaging and labeling for restricted
                    uses shall be clearly distinguishable from its
                    packaging and labeling for general uses.
                      (B) If the Administrator determines that the
                    pesticide, when applied in accordance with its
                    directions for use, warnings and cautions and
                    for the uses for which it is registered, or for
                    one or more of such uses, or in accordance with
                    a widespread and commonly recognized practice,
                    will not generally cause unreasonable adverse
                    effects on the environment, the Administrator
                    will classify the pesticide, or the particular
                    use or uses of the pesticide to which the
                    determination applies, for general use.
                      (C) If the Administrator determines that the
                    pesticide, when applied in accordance with its
                    directions for use, warnings and cautions and
                    for the uses for which it is registered, or for
                    one or more of such uses, or in accordance with
                    a widespread and commonly recognized practice,
                    may generally cause, without additional
                    regulatory restrictions, unreasonable adverse
                    effects on the environment, including injury to
                    the applicator, the Administrator shall
                    classify the pesticide, or the particular use
                    or uses to which the determination applies, for
                    restricted use:
                              (i) If the Administrator classifies a
                            pesticide, or one or more uses of such
                            pesticide, for restricted use because
                            of a determination that the acute
                            dermal or inhalation toxicity of the
                            pesticide presents a hazard to the
                            applicator or other persons, the
                            pesticide shall be applied for any use
                            to which the restricted classification
                            applies only by or under the direct
                            supervision of a certified applicator.
                              (ii) If the Administrator classifies
                            a pesticide, or one or more uses of
                            such pesticide, for restricted use
                            because of a determination that its use
                            without additional regulatory
                            restriction may cause unreasonable
                            adverse effects on the environment, the
                            pesticide shall be applied for any use
                            to which the determination applies only
                            by or under the direct supervision of a
                            certified applicator, or subject to
                            such other restrictions as the
                            Administrator may provide by
                            regulation. Any such regulation shall
                            be reviewable in the appropriate court
                            of appeals upon petition of a person
                            adversely affected filed within 60 days
                            of the publication of the regulation in
                            final form.
              (2) Change in classification.--If the Administrator
            determines that a change in the classification of any
            use of a pesticide from general use to restricted use
            is necessary to prevent unreasonable adverse effects on
            the environment, the Administrator shall notify the
            registrant of such pesticide of such determination at
            least forty-five days before making the change and
            shall publish the proposed change in the Federal
            Register. The registrant, or other interested person
            with the concurrence of the registrant, may seek relief
            from such determination under section 6(b).
              (3) Change in classification from restricted use to
            general use.--The registrant of any pesticide with one
            or more uses classified for restricted use may petition
            the Administrator to change any such classification
            from restricted to general use. Such petition shall set
            out the basis for the registrant's position that
            restricted use classification is unnecessary because
            classification of the pesticide for general use would
            not cause unreasonable adverse effects on the
            environment. The Administrator, within sixty days after
            receiving such petition, shall notify the registrant
            whether the petition has been granted or denied. Any
            denial shall contain an explanation therefor and any
            such denial shall be subject to judicial review under
            section 16 of this Act.
      (e) Products With Same Formulation and Claims.--Products
    which have the same formulation, are manufactured by the same
    person, the labeling of which contains the same claims, and the
    labels of which bear a designation identifying the product as
    the same pesticide may be registered as a single pesticide; and
    additional names and labels shall be added to the registration
    by supplemental statements.
      (f) Miscellaneous.--
              (1) Effect of change of labeling or formulation.--If
            the labeling or formulation for a pesticide is changed,
            the registration shall be amended to reflect such
            change if the Administrator determines that the change
            will not violate any provision of this Act.
              (2) Registration not a defense.--In no event shall
            registration of an article be construed as a defense
            for the commission of any offense under this Act. As
            long as no cancellation proceedings are in effect
            registration of a pesticide shall be prima facie
            evidence that the pesticide, its labeling and packaging
            comply with the registration provisions of the Act.
              (3) Authority to consult other federal agencies.--In
            connection with consideration of any registration or
            application for registration under this section, the
            Administrator may consult with any other Federal
            agency.
              (4) Mixtures of nitrogen stabilizers and fertilizer
            products.--Any mixture or other combination of--
                      (A) 1 or more nitrogen stabilizers registered
                    under this Act; and
                      (B) 1 or more fertilizer products,
            shall not be subject to the provisions of this section
            or sections 4, 5, 7, 15, and 17(a)(2) if the mixture or
            other combination is accompanied by the labeling
            required under this Act for the nitrogen stabilizer
            contained in the mixture or other combination, the
            mixture or combination is mixed or combined in
            accordance with such labeling, and the mixture or
            combination does not contain any active ingredient
            other than the nitrogen stabilizer.
              (5) Bilingual labeling.--
                      (A) Requirement.--
                              (i) In general.--Subject to clause
                            (ii), not later than the applicable
                            deadline described in subparagraph (B),
                            each registered pesticide product
                            released for shipment shall include--
                                      (I) the translation of the
                                    parts of the labeling contained
                                    in the Spanish Translation
                                    Guide described in subparagraph
                                    (G) on the product container;
                                    or
                                      (II) a link to such
                                    translation via scannable
                                    technology or other electronic
                                    methods readily accessible on
                                    the product label.
                              (ii) Exceptions.--Notwithstanding
                            clause (i)--
                                      (I) an antimicrobial
                                    pesticide product may, in lieu
                                    of including a translation or a
                                    link under clause (i), provide
                                    a link to the safety data
                                    sheets in Spanish via scannable
                                    technology or other electronic
                                    methods readily accessible on
                                    the product label; or
                                      (II) a non-agricultural
                                    pesticide product that is not
                                    classified by the Administrator
                                    as restricted use under
                                    subsection (d)(1)(A) may, in
                                    lieu of including a translation
                                    or a link under clause (i),
                                    provide a link to the safety
                                    data sheets in Spanish via
                                    scannable technology or other
                                    electronic methods readily
                                    accessible on the product
                                    label.
                      (B) Deadlines for bilingual labeling.--
                              (i) Pesticide products classified as
                            restricted use.--In the case of
                            pesticide products classified by the
                            Administrator as restricted use under
                            subsection (d)(1)(A), the deadline
                            specified in this subparagraph is the
                            date that is 3 years following the date
                            of enactment of this paragraph.
                              (ii) Pesticide products not
                            classified as restricted use.--In the
                            case of pesticide products not
                            classified by the Administrator as
                            restricted use under subsection
                            (d)(1)(A), the deadline specified in
                            this subparagraph shall be as follows:
                                      (I) Agricultural.--
                                              (aa) Acute toxicity
                                            category i.--For
                                            agricultural pesticides
                                            classified as Acute
                                            Toxicity Category I,
                                            the date that is 3
                                            years after the date of
                                            enactment of this
                                            paragraph.
                                              (bb) Acute toxicity
                                            category ii.--For
                                            agricultural pesticides
                                            classified as Acute
                                            Toxicity Category II,
                                            the date that is 5
                                            years after the date of
                                            enactment of this
                                            paragraph.
                                      (II) Antimicrobial and non-
                                    agricultural.--
                                              (aa) Acute toxicity
                                            category i.--For
                                            antimicrobial and non-
                                            agricultural pesticide
                                            products classified as
                                            Acute Toxicity Category
                                            I, the date that is 4
                                            years after the date of
                                            enactment of this
                                            paragraph.
                                              (bb) Acute toxicity
                                            category ii.--For
                                            antimicrobial and non-
                                            agricultural pesticide
                                            products classified as
                                            Acute Toxicity Category
                                            II, the date that is 6
                                            years after the date of
                                            enactment of this
                                            paragraph.
                                      (III) Other pesticide
                                    products.--With respect to
                                    pesticide products not
                                    described in subclause (I) or
                                    (II), the date that is 8 years
                                    after the date of enactment of
                                    this paragraph.
                      (C) Implementation.--
                              (i) Non-notification.--
                                      (I) In general.--In carrying
                                    out this paragraph, the
                                    Administrator shall allow
                                    translations of the parts of
                                    the label of a pesticide
                                    contained in the Spanish
                                    Translation Guide described in
                                    subparagraph (G) and scannable
                                    technology or other electronic
                                    methods to be added using non-
                                    notification procedures.
                                      (II) Non-notification
                                    procedure defined.--In this
                                    clause, the term ``non-
                                    notification procedure'' refers
                                    to a procedure under which a
                                    change may be made to a
                                    pesticide label without
                                    notifying the Administrator.
                              (ii) Cooperation and consultation.--
                            In carrying out this paragraph, the
                            Administrator shall cooperate and
                            consult with State lead agencies for
                            pesticide regulation for the purpose of
                            implementing bilingual labeling as
                            provided in this paragraph as
                            expeditiously as possible.
                              (iii) End use labeling.--The labeling
                            requirements of this paragraph shall
                            apply to end use product labels.
                              (iv) Incorporation timeframe.--After
                            initial translation deadlines provided
                            in subparagraph (B), updates to the
                            Spanish Translation Guide described in
                            subparagraph (G) shall be incorporated
                            into labeling on the earlier of--
                                      (I) in the case of
                                    agricultural use pesticide
                                    labels, as determined by the
                                    Administrator--
                                              (aa) 1 year after the
                                            date of publication of
                                            the updated Spanish
                                            Label Translation Guide
                                            described in
                                            subparagraph (G); or
                                              (bb) the released for
                                            shipment date specified
                                            on the EPA Stamped
                                            Approved Label after
                                            the pesticide label is
                                            next changed or amended
                                            following the date of
                                            publication of the
                                            updated Spanish Label
                                            Translation Guide
                                            described in
                                            subparagraph (G); and
                                      (II) in the case of
                                    antimicrobial and non-
                                    agricultural use pesticide
                                    labels, as determined by the
                                    Administrator--
                                              (aa) 2 years after
                                            the date of publication
                                            of the updated Spanish
                                            Label Translation Guide
                                            described in
                                            subparagraph (G); or
                                              (bb) the released for
                                            shipment date specified
                                            on the EPA Stamped
                                            Approved Label after
                                            the pesticide label is
                                            next changed or amended
                                            following the date of
                                            publication of the
                                            updated Spanish Label
                                            Translation Guide
                                            described in
                                            subparagraph (G).
                              (v) Notification of updates to the
                            spanish translation guide for pesticide
                            labeling.--Not later than 10 days after
                            updating the Spanish Translation Guide
                            described in subparagraph (G), the
                            Administrator shall notify registrants
                            of the update to such guide.
                      (D) Accessibility of bilingual labeling for
                    farm workers.--Not later than 180 days after
                    the date of enactment of this paragraph, to the
                    maximum extent practicable, the Administrator
                    shall seek stakeholder input on ways to make
                    bilingual labeling required under this
                    paragraph accessible to farm workers.
                      (E) Plan.--Not later than 3 years after the
                    date of enactment of this paragraph, the
                    Administrator shall implement a plan to ensure
                    that farm workers have access to the bilingual
                    labeling required under this paragraph.
                      (F) Reporting.--Not later than 2 years after
                    the date of enactment of this paragraph, the
                    Administrator shall develop and implement, and
                    make publicly available, a plan for tracking
                    the adoption of the bilingual labeling required
                    under this paragraph.
                      (G) Spanish translation guide described.--The
                    Spanish Translation Guide described in this
                    subparagraph is the Spanish Translation Guide
                    for Pesticide Labeling issued in October 2019,
                    as in effect on the date of enactment of the
                    Pesticide Registration Improvement Act of 2022,
                    and any successor guides or amendments to such
                    guide.
              (6) Lawful use of registered pesticides.--
            Notwithstanding any other provision of law, the use,
            application, or discharge of a registered pesticide
            consistent with its labeling approved under this Act
            shall be permitted and considered lawful, without
            further permitting or approval requirements.
      (g) Registration Review.--
              (1)(A) General rule.--
                      (i) In general.--The registrations of
                    pesticides are to be periodically reviewed.
                      (ii) Regulations.--In accordance with this
                    subparagraph, the Administrator shall by
                    regulation establish a procedure for
                    accomplishing the periodic review of
                    registrations.
                      (iii) Initial registration review.--The
                    Administrator shall complete [the registration
                    review of] the interim registration review
                    decision of each pesticide or pesticide case,
                    which may be composed of 1 or more active
                    ingredients and the products associated with
                    the active ingredients, not later than the
                    later of--
                              (I) October 1, [2022] 2031; or
                              (II) the date that is 15 years after
                            the date on which the first pesticide
                            containing a new active ingredient is
                            registered.
                      (iv) Subsequent registration review.--Not
                    later than 15 years after the date on which the
                    initial registration review is completed under
                    clause (iii) and each 15 years thereafter, the
                    Administrator shall complete a subsequent
                    registration review for each pesticide or
                    pesticide case.
                      (v) Cancellation.--No registration shall be
                    canceled as a result of the registration review
                    process unless the Administrator follows the
                    procedures and substantive requirements of
                    section 6.
                      (vi) Interim registration review decision
                    requirements.--
                              (I) Requirements.--Any covered
                            interim registration review decision
                            shall include, where applicable,
                            measures to reduce the effects of the
                            applicable pesticide on--
                                      (aa) species listed under the
                                    Endangered Species Act of 1973
                                    (16 U.S.C. 1531 et seq.); or
                                      (bb) any designated critical
                                    habitat.
                              (II) Consultation.--In developing
                            measures described in subclause (I),
                            the Administrator shall take into
                            account the input received from the
                            Secretary of Agriculture and other
                            members of the interagency working
                            group established under subsection
                            (c)(11).
                              (III) Covered interim registration
                            review decision.--In this subsection,
                            the term ``covered interim registration
                            review decision'' means an interim
                            registration review decision--
                                      (aa) that is associated with
                                    an initial registration review
                                    described in clause (iii);
                                      (bb) that is noticed in the
                                    Federal Register during the
                                    period beginning on the date of
                                    enactment of this clause and
                                    ending on October 1, 2031; and
                                      (cc) for which the
                                    Administrator has not, as of
                                    the date on which the decision
                                    is noticed in the Federal
                                    Register, made effects
                                    determinations or completed any
                                    necessary consultation under
                                    section 7(a)(2) of the
                                    Endangered Species Act of 1973
                                    (16 U.S.C. 1536(a)(2)).
              (B) Docketing.--
                      (i) In general.--Subject to clause (ii),
                    after meeting with 1 or more individuals that
                    are not government employees to discuss matters
                    relating to a registration review, the
                    Administrator shall place in the docket minutes
                    of the meeting, a list of attendees, and any
                    documents exchanged at the meeting, not later
                    than the earlier of--
                              (I) the date that is 45 days after
                            the meeting; or
                              (II) the date of issuance of the
                            registration review decision.
                      (ii) Protected information.--The
                    Administrator shall identify, but not include
                    in the docket, any confidential business
                    information the disclosure of which is
                    prohibited by section 10.
              (C) Limitation.--Nothing in this subsection shall
            prohibit the Administrator from undertaking any other
            review of a pesticide pursuant to this Act.
              (2)(A) Data.--The Administrator shall use the
            authority in subsection (c)(2)(B) to require the
            submission of data when such data are necessary for a
            registration review.
              (B) Data submission, compensation, and exemption.--
            For purposes of this subsection, the provisions of
            subsections (c)(1), (c)(2)(B), and (c)(2)(D) shall be
            utilized for and be applicable to any data required for
            registration review.
      (h) Registration Requirements for Antimicrobial Pesticides.--
              (1) Evaluation of process.--To the maximum extent
            practicable consistent with the degrees of risk
            presented by an antimicrobial pesticide and the type of
            review appropriate to evaluate the risks, the
            Administrator shall identify and evaluate reforms to
            the antimicrobial registration process that would
            reduce review periods existing as of the date of
            enactment of this subsection for antimicrobial
            pesticide product registration applications and
            applications for amended registration of antimicrobial
            pesticide products, including--
                      (A) new antimicrobial active ingredients;
                      (B) new antimicrobial end-use products;
                      (C) substantially similar or identical
                    antimicrobial pesticides; and
                      (D) amendments to antimicrobial pesticide
                    registrations.
              (2) Review time period reduction goal.--Each reform
            identified under paragraph (1) shall be designed to
            achieve the goal of reducing the review period
            following submission of a complete application,
            consistent with the degree of risk, to a period of not
            more than--
                      (A) 540 days for a new antimicrobial active
                    ingredient pesticide registration;
                      (B) 270 days for a new antimicrobial use of a
                    registered active ingredient;
                      (C) 120 days for any other new antimicrobial
                    product;
                      (D) 90 days for a substantially similar or
                    identical antimicrobial product;
                      (E) 90 days for an amendment to an
                    antimicrobial registration that does not
                    require scientific review of data; and
                      (F) 120 days for an amendment to an
                    antimicrobial registration that requires
                    scientific review of data and that is not
                    otherwise described in this paragraph.
              (3) Implementation.--
                      (A) Proposed rulemaking.--
                              (i) Issuance.--Not later than 270
                            days after the date of enactment of
                            this subsection, the Administrator
                            shall publish in the Federal Register
                            proposed regulations to accelerate and
                            improve the review of antimicrobial
                            pesticide products designed to
                            implement, to the extent practicable,
                            the goals set forth in paragraph (2).
                              (ii) Requirements.--Proposed
                            regulations issued under clause (i)
                            shall--
                                      (I) define the various
                                    classes of antimicrobial use
                                    patterns, including household,
                                    industrial, and institutional
                                    disinfectants and sanitizing
                                    pesticides, preservatives,
                                    water treatment, and pulp and
                                    paper mill additives, and other
                                    such products intended to
                                    disinfect, sanitize, reduce, or
                                    mitigate growth or development
                                    of microbiological organisms,
                                    or protect inanimate objects,
                                    industrial processes or
                                    systems, surfaces, water, or
                                    other chemical substances from
                                    contamination, fouling, or
                                    deterioration caused by
                                    bacteria, viruses, fungi,
                                    protozoa, algae, or slime;
                                      (II) differentiate the types
                                    of review undertaken for
                                    antimicrobial pesticides;
                                      (III) conform the degree and
                                    type of review to the risks and
                                    benefits presented by
                                    antimicrobial pesticides and
                                    the function of review under
                                    this Act, considering the use
                                    patterns of the product,
                                    toxicity, expected exposure,
                                    and product type;
                                      (IV) ensure that the
                                    registration process is
                                    sufficient to maintain
                                    antimicrobial pesticide
                                    efficacy and that antimicrobial
                                    pesticide products continue to
                                    meet product performance
                                    standards and effectiveness
                                    levels for each type of label
                                    claim made; and
                                      (V) implement effective and
                                    reliable deadlines for process
                                    management.
                              (iii) Comments.--In developing the
                            proposed regulations, the Administrator
                            shall solicit the views from
                            registrants and other affected parties
                            to maximize the effectiveness of the
                            rule development process.
                      (B) Final regulations.--
                              (i) Issuance.--The Administrator
                            shall issue final regulations not later
                            than 240 days after the close of the
                            comment period for the proposed
                            regulations.
                              (ii) Failure to meet goal.--If a goal
                            described in paragraph (2) is not met
                            by the final regulations, the
                            Administrator shall identify the goal,
                            explain why the goal was not attained,
                            describe the element of the regulations
                            included instead, and identify future
                            steps to attain the goal.
                              (iii) Requirements.--In issuing final
                            regulations, the Administrator shall--
                                      (I) consider the
                                    establishment of a
                                    certification process for
                                    regulatory actions involving
                                    risks that can be responsibly
                                    managed, consistent with the
                                    degree of risk, in the most
                                    cost-efficient manner;
                                      (II) consider the
                                    establishment of a
                                    certification process by
                                    approved laboratories as an
                                    adjunct to the review process;
                                      (III) use all appropriate and
                                    cost-effective review
                                    mechanisms, including--
                                              (aa) expanded use of
                                            notification and non-
                                            notification
                                            procedures;
                                              (bb) revised
                                            procedures for
                                            application review; and
                                              (cc) allocation of
                                            appropriate resources
                                            to ensure streamlined
                                            management of
                                            antimicrobial pesticide
                                            registrations; and
                                      (IV) clarify criteria for
                                    determination of the
                                    completeness of an application.
                      (C) Expedited review.--This subsection does
                    not affect the requirements or extend the
                    deadlines or review periods contained in
                    subsection (c)(3).
                      (D) Alternative review periods.--If the final
                    regulations to carry out this paragraph are not
                    effective 630 days after the date of enactment
                    of this subsection, until the final regulations
                    become effective, the review period, beginning
                    on the date of receipt by the Agency of a
                    complete application, shall be--
                              (i) 2 years for a new antimicrobial
                            active ingredient pesticide
                            registration;
                              (ii) 1 year for a new antimicrobial
                            use of a registered active ingredient;
                              (iii) 180 days for any other new
                            antimicrobial product;
                              (iv) 90 days for a substantially
                            similar or identical antimicrobial
                            product;
                              (v) 90 days for an amendment to an
                            antimicrobial registration that does
                            not require scientific review of data;
                            and
                              (vi) 120 days for an amendment to an
                            antimicrobial registration that
                            requires scientific review of data and
                            that is not otherwise described in this
                            subparagraph.
                      (E) Wood preservatives.--An application for
                    the registration, or for an amendment to the
                    registration, of a wood preservative product
                    for which a claim of pesticidal activity listed
                    in section 2(mm) is made (regardless of any
                    other pesticidal claim that is made with
                    respect to the product) shall be reviewed by
                    the Administrator within the same period as
                    that established under this paragraph for an
                    antimicrobial pesticide product application,
                    consistent with the degree of risk posed by the
                    use of the wood preservative product, if the
                    application requires the applicant to satisfy
                    the same data requirements as are required to
                    support an application for a wood preservative
                    product that is an antimicrobial pesticide.
                      (F) Notification.--
                              (i) In general.--Subject to clause
                            (iii), the Administrator shall notify
                            an applicant whether an application has
                            been granted or denied not later than
                            the final day of the appropriate review
                            period under this paragraph, unless the
                            applicant and the Administrator agree
                            to a later date.
                              (ii) Final decision.--If the
                            Administrator fails to notify an
                            applicant within the period of time
                            required under clause (i), the failure
                            shall be considered an agency action
                            unlawfully withheld or unreasonably
                            delayed for purposes of judicial review
                            under chapter 7 of title 5, United
                            States Code.
                              (iii) Exemption.--This subparagraph
                            does not apply to an application for an
                            antimicrobial pesticide that is filed
                            under subsection (c)(3)(B) prior to 90
                            days after the date of enactment of
                            this subsection
                              (iv) Limitation.--Notwithstanding
                            clause (ii), the failure of the
                            Administrator to notify an applicant
                            for an amendment to a registration for
                            an antimicrobial pesticide shall not be
                            judicially reviewable in a Federal or
                            State court if the amendment requires
                            scientific review of data within--
                                      (I) the time period specified
                                    in subparagraph (D)(vi), in the
                                    absence of a final regulation
                                    under subparagraph (B); or
                                      (II) the time period
                                    specified in paragraph (2)(F),
                                    if adopted in a final
                                    regulation under subparagraph
                                    (B).
              (4) Annual report.--
                      (A) Submission.--Beginning on the date of
                    enactment of this subsection and ending on the
                    date that the goals under paragraph (2) are
                    achieved, the Administrator shall, not later
                    than March 1 of each year, prepare and submit
                    an annual report to the Committee on
                    Agriculture of the House of Representatives and
                    the Committee on Agriculture, Nutrition, and
                    Forestry of the Senate.
                      (B) Requirements.--A report submitted under
                    subparagraph (A) shall include a description
                    of--
                              (i) measures taken to reduce the
                            backlog of pending registration
                            applications;
                              (ii) progress toward achieving
                            reforms under this subsection; and
                              (iii) recommendations to improve the
                            activities of the Agency pertaining to
                            antimicrobial registrations.
      (i) Coordination.--
              (1) Risk mitigation measures.--If any risk mitigation
            measures are required for any pesticide registered
            under this Act, the Administrator shall--
                      (A) develop such measures in coordination
                    with the Secretary of Agriculture; and
                      (B) conduct, and publish in the docket, with
                    the corresponding action, an economic analysis
                    determining the cost of implementation of such
                    measures.
              (2) Data and information.--
                      (A) Coordination of data and information.--
                    With regard to the registration or registration
                    review of a pesticide under this Act and for
                    making a determination under section 408 of the
                    Federal Food, Drug, and Cosmetic Act (21 U.S.C.
                    346a) with respect to any action that impacts
                    the sale, distribution, or use of a pesticide,
                    the Administrator shall coordinate with the
                    Secretary of Agriculture, acting through the
                    Director of the Office of Pest Management
                    Policy, so that the Administrator has for the
                    Administrator's use and consideration for such
                    processes--
                              (i) agronomic use data from--
                                      (I) the Department of
                                    Agriculture; and
                                      (II) industry; and
                              (ii) any information relating to the
                            availability and economic viability of
                            alternatives to such pesticide.
                      (B) Data and information.--When issuing any
                    decision resulting from the processes referred
                    to in subparagraph (A), the Administrator shall
                    publish--
                              (i) a description of the use by the
                            Administrator of any data or
                            information provided by the Secretary
                            of Agriculture under subparagraph (A);
                            and
                              (ii) the determination of the
                            Administrator on whether to use such
                            data or information, including, as
                            applicable, the reasons that the data
                            or information was not used.
              (3) Reasonable and prudent actions and measures.--For
            implementation of reasonable and prudent actions and
            measures with respect to the use of a pesticide
            registered under this Act, the Administrator shall
            coordinate with the Secretary of Agriculture, the
            Secretary of the Interior, and the Secretary of
            Commerce--
                      (A) to review the development of any such
                    actions and measures that are a result of
                    consultations relating to actions under this
                    Act;
                      (B) to fully consider the risks and benefits
                    of any such actions and measures in a manner
                    consistent with practices established to
                    evaluate the risks and benefits of a pesticide
                    registered under this Act; and
                      (C) to provide feedback to the Secretary of
                    the Interior and the Secretary of Commerce on
                    decisions relating to any such actions and
                    measures that may affect end users of a
                    pesticide registered under this Act.
              (4) Waiver.--The coordination requirements imposed by
            this subsection may be waived or modified for a
            specific action to the extent agreed upon by the
            Administrator, the Secretary of Agriculture, and the
            registrant so long as such agreement is published by
            the Administrator in the docket for the corresponding
            action.

               *       *       *       *       *       *       *

    SEC. 17. IMPORTS AND EXPORTS.

      (a) Pesticides and Devices Intended for Export.--
    Notwithstanding any other provision this Act, no pesticide or
    device or active ingredient used in producing a pesticide
    intended solely for export to any foreign country shall be
    deemed in violation of this Act--
              (1) when prepared or packed according to the
            specifications or directions of the foreign purchaser,
            except that producers of such pesticides and devices
            and active ingredients used in producing pesticides
            shall be subject to sections 2(p), 2(q) (1) (A), (C),
            (D), (E), (G), and (H), 2(q) (2) (A), (B), (C) (i) and
            (iii), and (D), 7, and 8 of this Act; and
              (2) in the case of any pesticide other than a
            pesticide registered under section 3 or sold under
            section 6(a) (1) of this Act, if, prior to export, the
            foreign purchaser has signed a statement acknowledging
            that the purchaser understands that such pesticide is
            not registered for use in the United States and cannot
            be sold in the United States under this Act.
    A copy of that statement shall be transmitted to an appropriate
    official of the government of the importing country.
      (b) Cancellation Notices Furnished to Foreign Governments.--
    Whenever a registration, or a cancellation or suspension of the
    registration of a pesticide becomes effective, or ceases to be
    effective, the Administrator shall transmit through the State
    Department notification thereof to the governments of other
    countries and to appropriate international agencies. Such
    notification shall, upon request, include all information
    related to the cancellation or suspension of the registration
    of the pesticide and information concerning other pesticides
    that are registered under section 3 of this Act and that could
    be used in lieu of such pesticide.
      (c) Importation of Pesticides and Devices.--
              (1) In general.--The Secretary of the Treasury shall
            notify the Administrator of the arrival of pesticides
            and devices and shall deliver to the Administrator,
            upon the Administrator's request, samples of pesticides
            or devices which are being imported into the United
            States, giving notice to the owner or consignee, who
            may appear before the Administrator and have the right
            to introduce testimony. If it appears from the
            examination of a sample that it is adulterated, or
            misbranded or otherwise violates the provisions set
            forth in this Act, or is otherwise injurious to health
            or the environment, the pesticide or device may be
            refused admission, and the Secretary of the Treasury
            shall refuse delivery to the consignee and shall cause
            the destruction of any pesticide or device refused
            delivery which shall not be exported by the consignee
            within 90 days from the date of notice of such refusal
            under such regulations as the Secretary of the Treasury
            may prescribe. The Secretary of the Treasury may
            deliver to the consignee such pesticide or device
            pending examination and decision in the matter on
            execution of bond for the amount of the full invoice
            value of such pesticide or device, together with the
            duty thereon, and on refusal to return such pesticide
            or device for any cause to the custody of the Secretary
            of the Treasury, when demanded, for the purpose of
            excluding them from the country, or for any other
            purpose, said consignee shall forfeit the full amount
            of said bond. All charges for storage, cartage, and
            labor on pesticides or devices which are refused
            admission or delivery shall be paid by the owner or
            consignee, and in default of such payment shall
            constitute a lien against any future importation made
            by such owner or consignee.
              (2) Importation of seed.--Notwithstanding any other
            provision of law, no person is required to notify the
            Administrator of the arrival of a plant-incorporated
            protectant [(as defined in section 174.3 of title 40,
            Code of Federal Regulations (or any successor
            regulation))] that is contained in a seed, if--
                      (A) that plant-incorporated protectant is
                    registered under section 3;
                      (B) the Administrator has issued an
                    experimental use permit for that plant-
                    incorporated protectant under section 5; [or]
                      (C) the seed is covered by a permit (as
                    defined in part 340 of title 7, Code of Federal
                    Regulations (or any successor regulation)) or a
                    notification[.]; or
                      (D) that plant-incorporated protectant is
                    exempt under section 25(b)(2) or part 174 of
                    title 40, Code of Federal Regulations (or any
                    successor regulation).
              (3) Cooperation.--
                      (A) In general.--In response to a request
                    from the Administrator, the Secretary of
                    Agriculture shall provide to the Administrator
                    a list of seed containing plant-incorporated
                    protectants [(as defined in section 174.3 of
                    title 40, Code of Federal Regulations (or any
                    successor regulation))] if the importation of
                    that seed into the United States has been
                    approved under a permit or notification
                    referred to in paragraph (2).
                      (B) Contents.--The list under subparagraph
                    (A) shall be provided in a form and at such
                    intervals as may be agreed to by the Secretary
                    and the Administrator.
              (4) Applicability.--Nothing in this subsection
            precludes or limits the authority of the Secretary of
            Agriculture with respect to the importation or movement
            of plants, plant products, or seeds under--
                      (A) the Plant Protection Act (7 U.S.C. 7701
                    et seq.); and
                      (B) the Federal Seed Act (7 U.S.C. 1551 et
                    seq.).
      (d) Cooperation in International Efforts.--
              (1) In general.--The Administrator shall, in
            cooperation with the Department of State and any other
            appropriate Federal agency, participate and cooperate
            in any international efforts to develop improved
            pesticide research and regulations.
              (2) Department of state expenses.--Any expenses
            incurred by an employee of the Environmental Protection
            Agency who participates in any international technical,
            economic, or policy review board, committee, or other
            official body that is meeting in relation to an
            international treaty shall be paid by the Department of
            State.
      (e) Regulations.--The Secretary of the Treasury, in
    consultation with the Administrator, shall prescribe
    regulations for the enforcement of subsection (c) of this
    section.

               *       *       *       *       *       *       *

    SEC. 24. AUTHORITY OF STATES  AND LOCALITIES.

      (a) In General.--A State may regulate the sale or use of any
    federally registered pesticide or device in the State, but only
    if and to the extent the regulation does not permit any sale or
    use prohibited by this Act.
      (b) Uniformity.--Such State shall not impose or continue in
    effect any requirements for labeling or packaging in addition
    to or different from those required under this Act.
      (c) Additional Uses.--
              (1) A State may provide registration for additional
            uses of federally registered pesticides formulated for
            distribution and use within that State to meet special
            local needs in accord with the purposes of this Act and
            if registration for such use has not previously been
            denied, disapproved, or canceled by the Administrator.
            Such registration shall be deemed registration under
            section 3 for all purposes of this Act, but shall
            authorize distribution and use only within such State.
              (2) A registration issued by a State under this
            subsection shall not be effective for more than ninety
            days if disapproved by the Administrator within that
            period. Prior to disapproval, the Administrator shall,
            except as provided in paragraph (3) of this subsection,
            advise the State of the Administrator's intention to
            disapprove and the reasons therefor, and provide the
            State time to respond. The Administrator shall not
            prohibit or disapprove a registration issued by a State
            under this subsection (A) on the basis of lack of
            essentiality of a pesticide or (B) except as provided
            in paragraph (3) of this subsection, if its composition
            and use patterns are similar to those of a federally
            registered pesticide.
              (3) In no instance may a State issue a registration
            for a food or feed use unless there exists a tolerance
            or exemption under the Federal Food, Drug, and Cosmetic
            Act that permits the residues of the pesticide on the
            food or feed. If the Administrator determines that a
            registration issued by a State is inconsistent with the
            Federal Food, Drug, and Cosmetic Act, or the use of, a
            pesticide under a registration issued by a State
            constitutes an imminent hazard, the Administrator may
            immediately disapprove the registration.
              (4) If the Administrator finds, in accordance with
            standards set forth in regulations issued under section
            25 of this Act, that a State is not capable of
            exercising adequate controls to assure that State
            registration under this section will be in accord with
            the purposes of this Act or has failed to exercise
            adequate controls, the Administrator may suspend the
            authority of the State to register pesticides until
            such time as the Administrator is satisfied that the
            State can and will exercise adequate controls. Prior to
            any such suspension, the Administrator shall advise the
            State of the Administrator's intention to suspend and
            the reasons therefor and provide the State time to
            respond.
      (d) Local Regulation.--A political subdivision of a State
    shall not impose, or continue in effect, any requirement
    relating to the sale, distribution, labeling, application, or
    use of any pesticide or device that is subject to regulation--
              (1) by a State pursuant to this section; or
              (2) by the Administrator under this Act.

    SEC. 25. AUTHORITY OF ADMINISTRATOR.

      (a) In General.--
              (1) Regulations.--The Administrator is authorized in
            accordance with the procedure described in paragraph
            (2), to prescribe regulations to carry out the
            provisions of this Act. Such regulations shall take
            into account the difference in concept and usage
            between various classes of pesticides, including public
            health pesticides, and differences in environmental
            risk and the appropriate data for evaluating such risk
            between agricultural, nonagricultural, and public
            health pesticides.
              (2) Procedure.--
                      (A) Proposed regulations.--At least 60 days
                    prior to signing any proposed regulation for
                    publication in the Federal Register, the
                    Administrator shall provide the Secretary of
                    Agriculture with a copy of such regulation. If
                    the Secretary comments in writing to the
                    Administrator regarding any such regulation
                    within 30 days after receiving it, the
                    Administrator shall publish in the Federal
                    Register (with the proposed regulation) the
                    comments of the Secretary and the response of
                    the Administrator with regard to the
                    Secretary's comments. If the Secretary does not
                    comment in writing to the Administrator
                    regarding the regulation within 30 days after
                    receiving it, the Administrator may sign such
                    regulation for publication in the Federal
                    Register any time after such 30-day period
                    notwithstanding the foregoing 60-day time
                    requirement.
                      (B) Final regulations.--At least 30 days
                    prior to signing any regulation in final form
                    for publication in the Federal Register, the
                    Administrator shall provide the Secretary of
                    Agriculture with a copy of such regulation. If
                    the Secretary comments in writing to the
                    Administrator regarding any such final
                    regulation within 15 days after receiving it,
                    the Administrator shall publish in the Federal
                    Register (with the final regulation) the
                    comments of the Secretary, if requested by the
                    Secretary, and the response of the
                    Administrator concerning the Secretary's
                    comments. If the Secretary does not comment in
                    writing to the Administrator regarding the
                    regulation within 15 days after receiving it,
                    the Administrator may sign such regulation for
                    publication in the Federal Register at any time
                    after such 15-day period notwithstanding the
                    foregoing 30-day time requirement. In taking
                    any final action under this subsection, the
                    Administrator shall include among those factors
                    to be taken into account the effect of the
                    regulation on production and prices of
                    agricultural commodities, retail food prices,
                    and otherwise on the agricultural economy, and
                    the Administrator shall publish in the Federal
                    Register an analysis of such effect.
                      (C) Time requirements.--The time requirements
                    imposed by subparagraphs (A) and (B) may be
                    waived or modified to the extent agreed upon by
                    the Administrator and the Secretary.
                      (D) Publication in the federal register.--The
                    Administrator shall, simultaneously with any
                    notification to the Secretary of Agriculture
                    under this paragraph prior to the issuance of
                    any proposed or final regulation, publish such
                    notification in the Federal Register.
              (3) Congressional committees.--At such time as the
            Administrator is required under paragraph (2) of this
            subsection to provide the Secretary of Agriculture with
            a copy of proposed regulations and a copy of the final
            form of regulations, the Administrator shall also
            furnish a copy of such regulations to the Committee on
            Agriculture of the House of Representatives and the
            Committee on Agriculture, Nutrition, and Forestry of
            the Senate.
              (4) Congressional review of regulations.--
            Simultaneously with the promulgation of any rule or
            regulation under this Act, the Administrator shall
            transmit a copy thereof to the Secretary of the Senate
            and the Clerk of the House of Representatives. The rule
            or regulation shall not become effective until the
            passage of 60 calendar days after the rule or
            regulation is so transmitted.
      [(b) Exemption of Pesticides.--The Administrator may exempt
    from the requirements of this Act by regulation any pesticide
    which the Administrator determines either (1) to be adequately
    regulated by another Federal agency, or (2) to be of a
    character which is unnecessary to be subject to this Act in
    order to carry out the purposes of this Act.]
      (b) Exemption of Pesticides.--
              (1) Exemption by rule.--The Administrator may exempt
            from the requirements of this Act by regulation any
            pesticide which the Administrator determines either--
                      (A) to be adequately regulated by another
                    Federal agency; or
                      (B) to be of a character which is unnecessary
                    to be subject to this Act in order to carry out
                    the purposes of this Act.
              (2) Exemption for certain plant-incorporated
            protectants.--
                      (A) Exemption.--
                              (i) In general.--Upon the issuance of
                            guidance as described in subparagraph
                            (B), plant-incorporated protectants
                            resulting from endogenous genetic
                            material found within or that could
                            arise from the plant's gene pool are
                            exempt from the requirements of this
                            Act.
                              (ii) Exception.--A specific plant-
                            incorporated protectant arising from
                            endogenous genetic material found
                            within or that could arise from the
                            plant's gene pool shall not be exempt
                            from the requirements of this Act if
                            the Administrator determines that such
                            plant-incorporated protectant is of a
                            character which is necessary to be
                            subject to this Act in order to carry
                            out the purposes of this Act.
                      (B) Guidance.--Not later than 1 year after
                    the date of the enactment of the Farm, Food,
                    and National Security Act of 2026, the
                    Administrator shall issue guidance for the
                    implementation of subparagraph (A). The
                    Administrator may update such guidance, as the
                    Administrator determines to be appropriate.
                      (C) Order.--
                              (i) In general.--If the Administrator
                            makes a determination described in
                            subparagraph (A)(ii) with respect to a
                            plant-incorporated protectant, the
                            Administrator shall issue an order
                            explaining the basis for such
                            determination, which may be issued
                            directly to any person who owns,
                            controls, or has custody of such plant-
                            incorporated protectant or published in
                            the Federal Register.
                              (ii) Effect of order.--After receipt
                            or publication of an order described in
                            clause (i), the plant-incorporated
                            protectant described in the order will
                            no longer be exempt from the
                            requirements of this Act.
                      (D) Tolerance exemption.--The residue of a
                    plant-incorporated protectant that is exempt
                    under subparagraph (A)(i) shall be exempt from
                    the requirement for a tolerance under section
                    408 of the Federal Food, Drug, and Cosmetic Act
                    (21 U.S.C. 346a) unless, and until such time
                    as, the Administrator issues or publishes an
                    order under subparagraph (C)(i).
      (c) Other Authority.--The Administrator, after notice and
    opportunity for hearing, is authorized--
              (1) to declare a pest any form of plant or animal
            life (other than man and other than bacteria, virus,
            and other micro-organisms on or in living man or other
            living animals) which is injurious to health or the
            environment;
              (2) to determine any pesticide which contains any
            substance or substances in quantities highly toxic to
            man;
              (3) to establish standards (which shall be consistent
            with those established under the authority of the
            Poison Prevention Packaging Act (Public Law 91-601))
            with respect to the package, container, or wrapping in
            which a pesticide or device is enclosed for use or
            consumption, in order to protect children and adults
            from serious injury or illness resulting from
            accidental ingestion or contact with pesticides or
            devices regulated by this Act as well as to accomplish
            the other purposes of this Act;
              (4) to specify those classes of devices which shall
            be subject to any provision of paragraph 2(q)(1) or
            section 7 of this Act upon the Administrator's
            determination that application of such provision is
            necessary to effectuate the purposes of this Act;
              (5) to prescribe regulations requiring any pesticide
            to be colored or discolored if the Administrator
            determines that such requirement is feasible and is
            necessary for the protection of health and the
            environment; and
              (6) to determine and establish suitable names to be
            used in the ingredient statement.
      (d) Scientific Advisory Panel.--
              (1) In general.--The Administrator shall submit to an
            advisory panel for comment as to the impact on health
            and the environment of the action proposed in notices
            of intent issued under section 6(b) and of the proposed
            and final form of regulations issued under section
            25(a) within the same time periods as provided for the
            comments of the Secretary of Agriculture under such
            sections. The time requirements for notices of intent
            and proposed and final forms of regulation may not be
            modified or waived unless in addition to meeting the
            requirements of section 6(b) or 25(a), as applicable,
            the advisory panel has failed to comment on the
            proposed action within the prescribed time period or
            has agreed to the modification or waiver. The
            Administrator shall also solicit from the advisory
            panel comments, evaluations, and recommendations for
            operating guidelines to improve the effectiveness and
            quality of scientific analyses made by personnel of the
            Environmental Protection Agency that lead to decisions
            by the Administrator in carrying out the provisions of
            this Act. The comments, evaluations, and
            recommendations of the advisory panel submitted under
            this subsection and the response of the Administrator
            shall be published in the Federal Register in the same
            manner as provided for publication of the comments of
            the Secretary of Agriculture under such sections. The
            chairman of the advisory panel, after consultation with
            the Administrator, may create temporary subpanels on
            specific projects to assist the full advisory panel in
            expediting and preparing its evaluations, comments, and
            recommendations. The subpanels may be composed of
            scientists other than members of the advisory panel, as
            deemed necessary for the purpose of evaluating
            scientific studies relied upon by the Administrator
            with respect to proposed action. Such additional
            scientists shall be selected by the advisory panel. The
            panel referred to in this subsection shall consist of 7
            members appointed by the Administrator from a list of
            12 nominees, 6 nominated by the National Institutes of
            Health and 6 by the National Science Foundation,
            utilizing a system of staggered terms of appointment.
            Members of the panel shall be selected on the basis of
            their professional qualifications to assess the effects
            of the impact of pesticides on health and the
            environment. To the extent feasible to insure
            multidisciplinary representation, the panel membership
            shall include representation from the disciplines of
            toxicology, pathology, environmental biology, and
            related sciences. If a vacancy occurs on the panel due
            to expiration of a term, resignation, or any other
            reason, each replacement shall be selected by the
            Administrator from a group of 4 nominees, 2 submitted
            by each of the nominating entities named in this
            subsection. The Administrator may extend the term of a
            panel member until the new member is appointed to fill
            the vacancy. If a vacancy occurs due to resignation, or
            reason other than expiration of a term, the
            Administrator shall appoint a member to serve during
            the unexpired term utilizing the nomination process set
            forth in this subsection. Should the list of nominees
            provided under this subsection be unsatisfactory, the
            Administrator may request an additional set of nominees
            from the nominating entities. The Administrator may
            require such information from the nominees to the
            advisory panel as the Administrator deems necessary,
            and the Administrator shall publish in the Federal
            Register the name, address, and professional
            affiliations of each nominee. Each member of the panel
            shall receive per diem compensation at a rate not in
            excess of that fixed for GS-18 of the General Schedule
            as may be determined by the Administrator, except that
            any such member who holds another office or position
            under the Federal Government the compensation for which
            exceeds such rate may elect to receive compensation at
            the rate provided for such other office or position in
            lieu of the compensation provided by this subsection.
            In order to assure the objectivity of the advisory
            panel, the Administrator shall promulgate regulations
            regarding conflicts of interest with respect to the
            members of the panel. The advisory panel established
            under this section shall be permanent. In performing
            the functions assigned by this Act, the panel shall
            consult and coordinate its activities with the Science
            Advisory Board established under the Environmental
            Research, Development, and Demonstration Authorization
            Act of 1978. Whenever the Administrator exercises
            authority under section 6(c) of this Act to immediately
            suspend the registration of any pesticide to prevent an
            imminent hazard, the Administrator shall promptly
            submit to the advisory panel for comment, as to the
            impact on health and the environment, the action taken
            to suspend the registration of such pesticide.
              (2) Science review board.--There is established a
            Science Review Board to consist of 60 scientists who
            shall be available to the Scientific Advisory Panel to
            assist in reviews conducted by the Panel. Members of
            the Board shall be selected in the same manner as
            members of temporary subpanels created under paragraph
            (1). Members of the Board shall be compensated in the
            same manner as members of the Panel.
      (e) Peer Review.--The Administrator shall, by written
    procedures, provide for peer review with respect to the design,
    protocols, and conduct of major scientific studies conducted
    under this Act by the Environmental Protection Agency or by any
    other Federal agency, any State or political subdivision
    thereof, or any institution or individual under grant,
    contract, or cooperative agreement from or with the
    Environmental Protection Agency. In such procedures, the
    Administrator shall also provide for peer review, using the
    advisory panel established under subsection (d) of this section
    or appropriate experts appointed by the Administrator from a
    current list of nominees maintained by such panel, with respect
    to the results of any such scientific studies relied upon by
    the Administrator with respect to actions the Administrator may
    take relating to the change in classification, suspension, or
    cancellation of a pesticide. Whenever the Administrator
    determines that circumstances do not permit the peer review of
    the results of any such scientific study prior to the
    Administrator's exercising authority under section 6(c) of this
    Act to immediately suspend the registration of any pesticide to
    prevent an imminent hazard, the Administrator shall promptly
    thereafter provide for the conduct of peer review as provided
    in this sentence. The evaluations and relevant documentation
    constituting the peer review that relate to the proposed
    scientific studies and the results of the completed scientific
    studies shall be included in the submission for comment
    forwarded by the Administrator to the advisory panel as
    provided in subsection (d). As used in this subsection, the
    term ``peer review'' shall mean an independent evaluation by
    scientific experts, either within or outside the Environmental
    Protection Agency, in the appropriate disciplines.

               *       *       *       *       *       *       *

                                  ----------

                 PESTICIDE REGISTRATION IMPROVEMENT ACT OF 2022

                              TITLE VI--PESTICIDES

               *       *       *       *       *       *       *

                Subtitle B--Other Matters Relating to Pesticides

    [SEC. 711. REGISTRATION REVIEW DEADLINE EXTENSION.

      [(a) In General.--Notwithstanding section 3(g)(1)(A)(iii)(I)
    of the Federal Insecticide, Fungicide, and Rodenticide Act (7
    U.S.C. 136a(g)(1)(A)(iii)(I)), the Administrator of the
    Environmental Protection Agency (referred to in this section as
    the ``Administrator'') shall complete the initial registration
    review of each pesticide or pesticide case covered by that
    section not later than October 1, 2026.
      [(b) Interim Registration Review Decision Requirements.--
              [(1) Definition of covered interim registration
            review decision.--In this subsection, the term
            ``covered interim registration review decision'' means
            an interim registration review decision--
                      [(A) that is associated with an initial
                    registration review described in subsection
                    (a);
                      [(B) that is noticed in the Federal Register
                    during the period beginning on the date of
                    enactment of this Act and ending on October 1,
                    2026; and
                      [(C) for which the Administrator has not, as
                    of the date on which the decision is noticed in
                    the Federal Register, made effects
                    determinations or completed any necessary
                    consultation under section 7(a)(2) of the
                    Endangered Species Act of 1973 (16 U.S.C.
                    1536(a)(2)).
              [(2) Requirements.--Any covered interim registration
            review decision shall include, where applicable,
            measures to reduce the effects of the applicable
            pesticide on--
                      [(A) species listed under the Endangered
                    Species Act of 1973 (16 U.S.C. 1531 et seq.);
                    or
                      [(B) any designated critical habitat.
              [(3) Consultation.--In developing measures described
            in paragraph (2), the Administrator shall take into
            account the input received from the Secretary of
            Agriculture and other members of the interagency
            working group established under section 3(c)(11) of the
            Federal Insecticide, Fungicide, and Rodenticide Act (7
            U.S.C. 136a(c)(11)).]

               *       *       *       *       *       *       *

                                  ----------

                           FEDERAL CROP INSURANCE ACT

               *       *       *       *       *       *       *

                            TITLE V--CROP INSURANCE

                    Subtitle A--Federal Crop Insurance Act

               *       *       *       *       *       *       *

    SEC. 502. PURPOSE AND DEFINITIONS.

      (a) Purpose.--It is the purpose of this subtitle to promote
    the national welfare by improving the economic stability of
    agriculture through a sound system of crop insurance and
    providing the means for the research and experience helpful in
    devising and establishing such insurance.
      (b) Definitions.--As used in this subtitle:
              (1) Additional coverage.--The term ``additional
            coverage'' means a plan of crop insurance coverage
            providing a level of coverage greater than the level
            available under catastrophic risk protection.
              (2) Approved insurance provider.--The term ``approved
            insurance provider'' means a private insurance provider
            that has been approved by the Corporation to provide
            insurance coverage to producers participating in the
            Federal crop insurance program established under this
            subtitle.
              (3) Beginning farmer or rancher.--The term
            ``beginning farmer or rancher'' means a farmer or
            rancher who has not actively operated and managed a
            farm or ranch with a bona fide insurable interest in a
            crop or livestock as an owner-operator, landlord,
            tenant, or sharecropper for more than 10 crop years, as
            determined by the Secretary.
              (4) Board.--The term ``Board'' means the Board of
            Directors of the Corporation established under section
            505(a).
              (5) Corporation.--The term ``Corporation'' means the
            Federal Crop Insurance Corporation established under
            section 503.
              (6) Cover crop termination.--The term ``cover crop
            termination'' means a practice that historically and
            under reasonable circumstances results in the
            termination of the growth of a cover crop.
              (7) Department.--The term ``Department'' means the
            United States Department of Agriculture.
              (8) Farm financial benchmarking.--The term ``farm
            financial benchmarking'' means--
                      (A) the process of comparing the performance
                    of an agricultural enterprise against the
                    performance of other similar enterprises,
                    through the use of comparable and reliable
                    data, in order to identify business management
                    strengths, weaknesses, and steps necessary to
                    improve management performance and business
                    profitability; and
                      (B) benchmarking of the type conducted by
                    farm management and producer associations
                    consistent with the activities described in or
                    funded pursuant to section 1672D of the Food,
                    Agriculture, Conservation, and Trade Act of
                    1990 (7 U.S.C. 5925f).
              (9) Hemp.--The term ``hemp'' has the meaning given
            the term in section 297A of the Agricultural Marketing
            Act of 1946.
              (10) Loss ratio.--The term ``loss ratio'' means the
            ratio of all sums paid by the Corporation as
            indemnities under any eligible crop insurance policy to
            that portion of the premium designated for anticipated
            losses and a reasonable reserve, other than that
            portion of the premium designated for operating and
            administrative expenses.
              (11) Organic crop.--The term ``organic crop'' means
            an agricultural commodity that is organically produced
            consistent with section 2103 of the Organic Foods
            Production Act of 1990 (7 U.S.C. 6502).
              (12) Secretary.--The term ``Secretary'' means the
            Secretary of Agriculture.
              (13) Transitional yield.--The term ``transitional
            yield'' means the maximum average production per acre
            or equivalent measure that is assigned to acreage for a
            crop year by the Corporation in accordance with the
            regulations of the Corporation whenever the producer
            fails--
                      (A) to certify that acceptable documentation
                    of production and acreage for the crop year is
                    in the possession of the producer; or
                      (B) to present the acceptable documentation
                    on the demand of the Corporation or an
                    insurance company reinsured by the Corporation.
              (14) Veteran farmer or rancher.--The term ``veteran
            farmer or rancher'' means a farmer or rancher who--
                      (A) has served in the Armed Forces (as
                    defined in section 101 of title 38, United
                    States Code); and
                      (B)(i) has not operated a farm or ranch;
                      (ii) has operated a farm or ranch for not
                    more than [5 years] 10 years; or
                      (iii) is a veteran (as defined in section 101
                    of that title) who has first obtained status as
                    a veteran (as so defined) during the most
                    recent [5-year] 10-year period.
      (c) Protection of Confidential Information.--
              (1) General prohibition against disclosure.--Except
            as provided in paragraph (2), the Secretary, any other
            officer or employee of the Department or an agency
            thereof, an approved insurance provider and its
            employees and contractors, and any other person may not
            disclose to the public information furnished by a
            producer under this subtitle.
              (2) Authorized disclosure.--
                      (A) Disclosure in statistical or aggregate
                    form.--Information described in paragraph (1)
                    may be disclosed to the public if the
                    information has been transformed into a
                    statistical or aggregate form that does not
                    allow the identification of the person who
                    supplied particular information.
                      (B) Consent of producer.--A producer may
                    consent to the disclosure of information
                    described in paragraph (1). The participation
                    of the producer in, and the receipt of any
                    benefit by the producer under, this subtitle or
                    any other program administered by the Secretary
                    may not be conditioned on the producer
                    providing consent under this paragraph.
              (3) Violations; penalties.--Section 1770(c) of the
            Food Security Act of 1985 (7 U.S.C. 2276(c)) shall
            apply with respect to the release of information
            collected in any manner or for any purpose prohibited
            by this subsection.
              (4) Information.--
                      (A) Request.--Subject to subparagraph (B),
                    the Farm Service Agency shall, in a timely
                    manner, provide to an agent or an approved
                    insurance provider authorized by the producer
                    any information (including Farm Service Agency
                    Form 578s (or any successor form)) or maps (or
                    any corrections to those forms or maps) that
                    may assist the agent or approved insurance
                    provider in insuring the producer under a
                    policy or plan of insurance under this
                    subtitle.
                      (B) Privacy.--Except as provided in
                    subparagraph (C), an agent or approved
                    insurance provider that receives the
                    information of a producer pursuant to
                    subparagraph (A) shall treat the information in
                    accordance with paragraph (1).
                      (C) Sharing.--Nothing in this section
                    prohibits the sharing of the information of a
                    producer pursuant to subparagraph (A) between
                    the agent and the approved insurance provider
                    of the producer.
      (d) Relation to Other Laws.--
              (1) Terms and conditions of policies and plans.--The
            terms and conditions of any policy or plan of insurance
            offered under this subtitle that is reinsured by the
            Corporation shall not--
                      (A) be subject to the jurisdiction of the
                    Commodity Futures Trading Commission or the
                    Securities and Exchange Commission; or
                      (B) be considered to be accounts, agreements
                    (including any transaction that is of the
                    character of, or is commonly known to the trade
                    as, an ``option'', ``privilege'',
                    ``indemnity'', ``bid'', ``offer'', ``put'',
                    ``call'', ``advance guaranty'', or ``decline
                    guaranty''), or transactions involving
                    contracts of sale of a commodity for future
                    delivery, traded or executed on a contract
                    market for the purposes of the Commodity
                    Exchange Act (7 U.S.C. 1 et seq.).
              (2) Effect on cftc and commodity exchange act.--
            Nothing in this subtitle affects the jurisdiction of
            the Commodity Futures Trading Commission or the
            applicability of the Commodity Exchange Act (7 U.S.C. 1
            et seq.) to any transaction conducted on a contract
            market under that Act by an approved insurance provider
            to offset the approved insurance provider's risk under
            a plan or policy of insurance under this subtitle.

               *       *       *       *       *       *       *

    SEC. 505. MANAGEMENT OF CORPORATION.

      (a) Board of Directors.--
              (1) Establishment.--The management of the Corporation
            shall be vested in a Board of Directors subject to the
            general supervision of the Secretary.
              (2) Composition.--The Board shall consist of only the
            following members:
                      (A) The manager of the Corporation, who shall
                    serve as a nonvoting ex officio member.
                      (B) The Under Secretary of Agriculture
                    responsible for the Federal crop insurance
                    program.
                      (C) One additional Under Secretary of
                    Agriculture (as designated by the Secretary).
                      (D) The Chief Economist of the Department of
                    Agriculture.
                      (E) The Chairperson of the Specialty Crop
                    Advisory Committee established by subsection
                    (f).
                      [(E)] (F) One person experienced in the crop
                    insurance business.
                      [(F)] (G) One person experienced in
                    reinsurance or the regulation of insurance.
                      [(G)] (H) Four active producers who are
                    policy holders, are from different geographic
                    areas of the United States, and represent a
                    cross-section of agricultural commodities grown
                    in the United States, including at least one
                    [specialty crop] livestock producer.
              (3) Appointment of private sector members.--The
            members of the Board described in [subparagraphs (E),
            (F), and (G) of paragraph (2)] subparagraphs (F), (G),
            and (H) of paragraph (2) and the members of the
            Specialty Crop Advisory Committee described in
            subsection (f)(2)--
                      (A) shall be appointed by, and hold office at
                    the pleasure of, the Secretary;
                      (B) shall not be otherwise employed by the
                    Federal Government;
                      (C) shall be appointed to staggered 4-year
                    terms, as determined by the Secretary; and
                      (D) shall serve not more than two consecutive
                    terms.
              (4) Chairperson.--The Board shall select a member of
            the Board to serve as Chairperson.
      (b) Vacancies in the Board so long as there shall be four
    members in office shall not impair the powers of the Board to
    execute the functions of the Corporation, and four of the
    members in office shall constitute a quorum for the transaction
    of the business of the Board.
      (c) The Directors of the Corporation who are employed in the
    Department shall receive no additional compensation for their
    services as such Directors, but may be allowed necessary
    traveling and subsistence expenses when engaged in business of
    the Corporation, outside of the District of Columbia. The
    Directors of the Corporation who are not employed by the
    Federal Government shall be paid such compensation for their
    services as Directors as the Secretary shall determine, but
    such compensation shall not exceed the daily equivalent of the
    rate prescribed for grade GS-18 under section 5332 of title 5
    of the United States Code when actually employed, and actual
    necessary traveling and subsistence expenses, or a per diem
    allowance in lieu of subsistence expenses, as authorized by
    section 5703 of title 5 of the United States Code for persons
    in Government service employed intermittently, when on the
    business of the Corporation away from their homes or regular
    places of business.
      (d) The manager of the Corporation shall be its chief
    executive officer, with such power and authority as may be
    conferred by the Board. The manager shall be appointed by, and
    hold office at the pleasure of, the Secretary.
      (e) Expert Review of Policies, Plans of Insurance, and
    Related Material.--
              (1) Review by experts.--The Board shall establish
            procedures under which any policy or plan of insurance,
            as well as any related material or modification of such
            a policy or plan of insurance, to be offered under this
            subtitle shall be subject to independent reviews by
            persons experienced as actuaries and in underwriting,
            as determined by the Board.
              (2) Review of corporation policies and plans.--Except
            as provided in paragraph (3), the Board shall contract
            with at least five persons to each conduct a review of
            the policy or plan of insurance, of whom--
                      (A) not more than one person may be employed
                    by the Federal Government; and
                      (B) at least one person must be designated by
                    approved insurance providers pursuant to
                    procedures determined by the Board.
              (3) Review of private submissions.--If the reviews
            under paragraph (1) cover a policy or plan of
            insurance, or any related material or modification of a
            policy or plan of insurance, submitted under section
            508(h)--
                      (A) the Board shall contract with at least
                    five persons to each conduct a review of the
                    policy or plan of insurance, of whom--
                              (i) not more than one person may be
                            employed by the Federal Government; and
                              (ii) none may be employed by an
                            approved insurance provider; and
                      (B) each review must be completed and
                    submitted to the Board not later than 30 days
                    prior to the end of the 120-day period
                    described in section 508(h)(4)(D).
              (4) Consideration of reviews.--The Board shall
            include reviews conducted under this subsection as part
            of the consideration of any policy or plan or
            insurance, or any related material or modification of a
            policy or plan of insurance, proposed to be offered
            under this subtitle.
              (5) Funding of reviews.--Each contract to conduct a
            review under this subsection shall be funded from
            amounts made available under section 516(b)(2)(A)(ii).
              (6) Relation to other authority.--The contract
            authority provided in this subsection is in addition to
            any other contracting authority that may be exercised
            by the Board under section 506(l).
      (f) Specialty Crop Advisory Committee.--
              (1) In general.--Not later than 180 days after the
            date of the enactment of this subsection, the Secretary
            shall--
                      (A) establish a Specialty Crop Advisory
                    Committee (in this subsection, referred to as
                    ``the Committee''); and
                      (B) appoint to the Committee in accordance
                    with paragraph (2) the initial members that
                    will assist the Corporation in the research,
                    creation, and improvement of policies or plans
                    of insurance for specialty crops.
              (2) Composition.--
                      (A) Chairperson.--The Chairperson of the
                    Committee shall be an individual with
                    experience in crop insurance and the unique
                    nature of the specialty crop industry.
                      (B) Members.--The Committee shall consist
                    of--
                              (i) individuals with an understanding
                            of the production methods, markets, and
                            risks (including losses due to weather,
                            trade damages, and supply chain
                            disruptions) unique to specialty crop
                            production;
                              (ii) not less than 5 producers and
                            not more than 10 total members; and
                              (iii) not less than 1 producer from
                            each of the West, Midwest, South, and
                            Northeast regions of the United States
                            (as identified by the Bureau of the
                            Census).
              (3) Duties.--The Committee established by this
            subsection shall--
                      (A) advise the Manager of the Corporation on
                    issues relating to specialty crop insurance
                    policies;
                      (B) provide input, through the Chairperson of
                    the Committee, to the Board on decisions
                    relating to specialty crop insurance policies;
                      (C) review available educational programs and
                    make recommendations to the Manager of the
                    Corporation on how to enhance the effectiveness
                    of such programs for specialty crop producers;
                      (D) provide recommendations to the Manager of
                    the Corporation regarding the presentation of
                    policies to the Board required by section
                    508(a)(6);
                      (E) advise the Manager of the Corporation on
                    entering into partnerships to carry out
                    subsections (d) and (e)(2)(B) of section 522;
                    and
                      (F) meet not less than 2 times each year to
                    carry out these duties.

    SEC. 506. GENERAL POWERS.

      (a) Succession.--The Corporation shall have succession in its
    corporate name.
      (b) Corporate Seal.--The Corporation may adopt, alter, and
    use a corporate seal, which shall be judicially noticed.
      (c) Property.--The Corporation may purchase or lease and hold
    such real and personal property as it deems necessary or
    convenient in the transaction of its business and may dispose
    of such property held by it upon such terms as it deems
    appropriate.
      (d) Suit.--Subject to section 508(j)(2)(A), the Corporation,
    subject to the provisions of section 508(j), may sue and be
    sued in its corporate name, but no attachment, injunction,
    garnishment, or other similar process, mesne or final, shall be
    issued against the Corporation or its property. The district
    courts of the United States, including the district courts of
    the District of Columbia and of any territory or possession,
    shall have exclusive original jurisdiction, without regard to
    the amount in controversy, of all suits brought by or against
    the Corporation. The Corporation may intervene in any court in
    any suit, action, or proceeding in which it has an interest.
    Any suit against the Corporation shall be brought in the
    District of Columbia, or in the district wherein the plaintiff
    resides or is engaged in business.
      (e) Bylaws and Regulations.--The Corporation may adopt,
    amend, and repeal bylaws, rules, and regulations governing the
    manner in which its business may be conducted and the powers
    granted to it by law may be exercised and enjoyed.
      (f) Mails.--The Corporation shall be entitled to the use of
    the United States mails in the same manner as the other
    executive agencies of Government.
      (g) Assistance.--The Corporation, with the consent of any
    board, commission, independent establishment, or executive
    department of the Government, including any field service
    thereof, may avail itself of the use of information, services,
    facilities, officials, and employees thereof in carrying out
    the provisions of this subtitle.
      (h) Collection and Sharing of Information.--
              (1) Surveys and investigations.--The Corporation may
            conduct surveys and investigations relating to crop
            insurance, agriculture-related risks and losses, and
            other issues related to carrying out this subtitle.
              (2) Data collection.--
                      (A) In general.--The Corporation shall
                    assemble data for the purpose of establishing
                    sound actuarial bases for insurance on
                    agricultural commodities.
                      (B) National agricultural statistics
                    service.--Data collected by the National
                    Agricultural Statistics Service, whether
                    published or unpublished, shall be--
                              (i) provided in an aggregate form to
                            the Corporation for the purpose of
                            providing insurance under this
                            subtitle; and
                              (ii) kept confidential by the
                            Corporation in the same manner and to
                            the same extent as is required under--
                                      (I) section 1770 of the Food
                                    Security Act of 1985 (7 U.S.C.
                                    2276); and
                                      (II) the Confidential
                                    Information Protection and
                                    Statistical Efficiency Act of
                                    2002 (44 U.S.C. 3501 note;
                                    Public Law 107-347).
                      (C) Noninsured crop disaster assistance
                    program.--In collecting data under this
                    subsection, the Secretary shall ensure that--
                              (i) appropriate data are collected
                            through the noninsured crop disaster
                            assistance program established by
                            section 196 of the Federal Agriculture
                            Improvement and Reform Act of 1996 (7
                            U.S.C. 7333); and
                              (ii) not less frequently than
                            annually, the Farm Service Agency
                            shares, and the Corporation considers,
                            the data described in clause (i).
              (3) Sharing of records.--Notwithstanding section
            502(c), records submitted in accordance with this
            subtitle and section 196 of the Agricultural Market
            Transition Act (7 U.S.C. 7333) shall be available to
            agencies and local offices of the Department,
            appropriate State and Federal agencies and divisions,
            applicants who have received payment under section
            522(b)(2)(E), and approved insurance providers for use
            in carrying out this subtitle, such section 196, and
            other agricultural programs.
      (i) Expenditures.--The Corporation shall determine the
    character and necessity for its expenditures under this
    subtitle and the manner in which they shall be incurred,
    allowed, and paid, without regard to the provisions of any
    other laws governing the expenditure of public funds and such
    determinations shall be final and conclusive upon all other
    officers of the Government.
      (j) Settling Claims.--The Corporation shall have the
    authority to make final and conclusive settlement and
    adjustment of any claim by or against the Corporation or a
    fiscal officer of the Corporation.
      (k) Other Powers.--The Corporation shall have such powers as
    may be necessary or appropriate for the exercise of the powers
    herein specifically conferred upon the Corporation and all such
    incidental powers as are customary in corporations generally.
      (l) Contracts.--The Corporation may enter into and carry out
    contracts or agreements, and issue regulations, necessary in
    the conduct of its business, as determined by the Board. State
    and local laws or rules shall not apply to contracts,
    agreements, or regulations of the Corporation or the parties
    thereto to the extent that such contracts, agreements, or
    regulations provide that such laws or rules shall not apply, or
    to the extent that such laws or rules are inconsistent with
    such contracts, agreements, or regulations.
      (m) Submission of Certain Information.--
              (1) Social security account and employer
            identification numbers.--The Corporation shall require,
            as a condition of eligibility for participation in the
            multiple peril crop insurance program, submission of
            social security account numbers, subject to the
            requirements of section 205(c)(2)(C)(iii) of the Social
            Security Act, and employer identification numbers,
            subject to the requirements of section 6109(f) of the
            Internal Revenue Code of 1986.
              (2) Notification by policyholders.--Each policyholder
            shall notify each individual or other entity that
            acquires or holds a substantial beneficial interest in
            such policyholder of the requirements and limitations
            under this subtitle.
              [(3) Identification of holders of substantial
            interests.--The Manager of the Corporation may require
            each policyholder to provide to the Manager, at such
            times and in such manner as prescribed by the Manager,
            the name of each individual that holds or acquires a
            substantial beneficial interest in the policyholder.]
              (3) Identification of holders of substantial
            interests.--
                      (A) In general.--The Manager of the
                    Corporation may require each policyholder to
                    provide to the Manager, at such times and in
                    such manner as prescribed by the Manager, the
                    name of each individual or other entity that
                    acquires or holds a substantial beneficial
                    interest in such policyholder.
                      (B) Extension available.--
                              (i) In general.--In the case of a
                            policyholder that does not provide the
                            information required pursuant to
                            subparagraph (A) to the Manager at the
                            time prescribed by the Manager, the
                            Manager shall allow such policyholder
                            to provide to the Manager such
                            information at any time during the
                            applicable crop year.
                              (ii) Exception.--Clause (i) shall not
                            apply to a policyholder that an
                            approved insurance provider
                            determines--
                                      (I) would receive
                                    disproportionate benefits under
                                    a crop insurance program as a
                                    result of failing to provide
                                    the information required
                                    pursuant to subparagraph (A) to
                                    the Manager at the time
                                    prescribed by the Manager; or
                                      (II) failed to provide such
                                    information to avoid an
                                    obligation or requirement under
                                    any State or Federal law.
              (4) Definition.--For purposes of this subsection, the
            term ``substantial beneficial interest'' means not less
            than [5 percent] 10 percent of all beneficial interests
            in the policyholder.
      (n) Actuarial Soundness.--
              (1) Projected loss ratio as of october 1, 1995.--The
            Corporation shall take such actions as are necessary to
            improve the actuarial soundness of Federal multiperil
            crop insurance coverage made available under this
            subtitle to achieve, on and after October 1, 1995, an
            overall projected loss ratio of not greater than 1.1,
            including--
                      (A) instituting appropriate requirements for
                    documentation of the actual production history
                    of insured producers to establish recorded or
                    appraised yields for Federal crop insurance
                    coverage that more accurately reflect the
                    associated actuarial risk, except that the
                    Corporation may not carry out this paragraph in
                    a manner that would prevent beginning farmers
                    (as defined by the Secretary) from obtaining
                    Federal crop insurance;
                      (B) establishing in counties, to the extent
                    practicable, a crop insurance option based on
                    area yields in a manner that allows an insured
                    producer to qualify for an indemnity if a loss
                    has occurred in a specified area in which the
                    farm of the insured producer is located;
                      (C) establishing a database that contains the
                    social security account and employee
                    identification numbers of participating
                    producers, agents, and loss adjusters and using
                    the numbers to identify insured producers,
                    agents, and loss adjusters who are high risk
                    for actuarial purposes and insured producers
                    who have not documented at least 4 years of
                    production history, to assess the performance
                    of insurance providers, and for other purposes
                    permitted by law; and
                      (D) taking any other measures authorized by
                    law to improve the actuarial soundness of the
                    Federal crop insurance program while
                    maintaining fairness and effective coverage for
                    agricultural producers.
              (2) Projected loss ratio.--The Corporation shall take
            such actions, including the establishment of adequate
            premiums, as are necessary to improve the actuarial
            soundness of Federal multiperil crop insurance made
            available under this subtitle to achieve an overall
            projected loss ratio of not greater than 1.0.
              (3) Nonstandard classification system.--To the extent
            that the Corporation uses the nonstandard
            classification system, the Corporation shall apply the
            system to all insured producers in a fair and
            consistent manner.
              (4) Actuarial soundness of certain new products.--The
            Corporation shall--
                      (A) review each policy or product developed
                    under section 508(h) periodically for actuarial
                    soundness; and
                      (B) take such actions, in consultation with
                    persons described in paragraph (1)(A) of such
                    section, as are necessary to improve the
                    actuarial soundness of such policies and
                    products.
      (o) Regulations.--The Secretary and the Corporation are each
    authorized to issue such regulations as are necessary to carry
    out this subtitle.
      (p) Purchase of American-Made Equipment and Products.--
              (1) Sense of congress.--It is the sense of Congress
            that, to the greatest extent practicable, all equipment
            and products purchased by the Corporation using funds
            made available to the Corporation should be American-
            made.
              (2) Notice requirement.--In providing financial
            assistance to, or entering into any contract with, any
            entity for the purchase of equipment and products to
            carry out this subtitle, the Corporation, to the
            greatest extent practicable, shall provide to the
            entity a notice describing the statement made in
            paragraph (1).
      (r) Procedures for Responding to Certain Inquiries.--
              (1) Procedures required.--The Corporation shall
            establish procedures under which the Corporation will
            provide a final agency determination in response to an
            inquiry regarding the interpretation by the Corporation
            of this subtitle or any regulation issued under this
            subtitle.
              (2) Implementation.--Not later than 180 days after
            the date of enactment of this subsection, the
            Corporation shall issue regulations to implement this
            subsection. At a minimum, the regulations shall
            establish--
                      (A) the manner in which inquiries described
                    in paragraph (1) are required to be submitted
                    to the Corporation; and
                      (B) a reasonable maximum number of days
                    within which the Corporation will respond to
                    all inquiries.
              (3) Effect of failure to timely respond.--If the
            Corporation fails to respond to an inquiry in
            accordance with the procedures established pursuant to
            this subsection, the person requesting the
            interpretation of this subtitle or regulation may
            assume the interpretation is correct for the applicable
            reinsurance year.

                                   personnel

      Sec. 507. (a) The Secretary shall appoint such officers and
    employees as may be necessary for the transaction of the
    business of the Corporation pursuant to civil-service laws and
    regulations, fix their compensation in accordance with the
    provisions of the Classification Act of 1923, as amended,
    define their authority and duties, and delegate to them such of
    the powers vested in the Corporation as the Secretary may
    determine appropriate. However, personnel paid by the hour,
    day, or month when actually employed may be appointed and their
    compensation fixed without regard to civil-service laws and
    regulations or the Classification Act of 1923, as amended.
      (b) Insofar as applicable, the benefits of the Act entitled
    ``An Act to provide compensation for employees of the United
    States suffering injuries while in the performance of their
    duties, and for other purposes,'' approved September 7, 1916,
    as amended (5 U.S.C. Chapter 8, subchapter I), shall extend to
    persons given employment under the provisions of this subtitle,
    including the employees of the committees and associations
    referred to in subsection (c) of this section and the members
    of such committees.
      (c) In the administration of this subtitle, the Board shall,
    to the maximum extent possible, (1) establish or use committees
    or associations of producers and make payments to them to cover
    the administrative and program expenses, as determined by the
    Board, incurred by them in cooperating in carrying out this
    subtitle, (2) contract with private insurance companies,
    private rating bureaus, and other organizations as appropriate
    for actuarial services, services relating to loss adjustment
    and rating plans of insurance, and other services to avoid
    duplication by the Federal Government of services that are or
    may readily be available in the private sector and to enable
    the Corporation to concentrate on regulating the provision of
    insurance under this subtitle and evaluating new products and
    materials submitted under section 508(h) or 523, and reimburse
    such companies for the administrative and program expenses, as
    determined by the Board, incurred by them, under terms and
    provisions and rates of compensation consistent with those
    generally prevailing in the insurance industry, and (3)
    encourage the sale of Federal crop insurance through licensed
    private insurance agents and brokers and give the insured the
    right to renew such insurance for successive terms through such
    agents and brokers, in which case the agent or broker shall be
    reasonably compensated from premiums paid by the insured for
    such sales and renewals recognizing the function of the agent
    or broker to provide continuing services while the insurance is
    in effect: Provided, That such compensation shall not be
    included in computations establishing premium rates. The Board
    shall provide such agents and brokers with indemnification,
    including costs and reasonable attorney fees, from the
    Corporation for errors or omissions on the part of the
    Corporation or its contractors for which the agent or broker is
    sued or held liable, except to the extent the agent or broker
    has caused the error or omission. Nothing in this subsection
    shall permit the Corporation to contract with other persons to
    carry out the responsibility of the Corporation to review and
    approve policies, rates, and other materials submitted under
    section 508(h).
      (d) The Secretary may allot to bureaus and offices of the
    Department or transfer to such other agencies of the State and
    Federal Governments as he may request to assist in carrying out
    this subtitle any funds made available pursuant to the
    provisions of section 516.
      (e) In carrying out the provisions of this subtitle the Board
    may, in its discretion, utilize producer-owned and producer-
    controlled cooperative associations.
      (f) Use of Resources, Data, Boards, and Committees of Federal
    Agencies.--If the Board determines it is necessary, the Board
    shall use, to the maximum extent practicable, the resources,
    data, boards, and the committees of--
              (1) the Natural Resources Conservation Service, in
            assisting the Board in--
                      (A) the classification of land as to risk and
                    production capability; and
                      (B) the consideration of acceptable
                    conservation practices, including good farming
                    practices with respect to conservation (such as
                    cover crop termination);
              (2) the Forest Service, in assisting the Board in the
            development of a timber insurance plan;
              (3) the Farm Service Agency, in assisting the Board
            in--
                      (A) the determination of individual producer
                    yields;
                      (B) sharing information on beginning farmers
                    and ranchers and veteran farmers and ranchers;
                      (C) investigating potential waste, fraud, or
                    abuse;
                      (D) sharing information to support the
                    transition of crops and counties from the
                    noninsured crop disaster assistance program
                    established by section 196 of the Federal
                    Agriculture Improvement and Reform Act of 1996
                    (7 U.S.C. 7333) to insurance under this
                    subtitle; and
                      (E) serving as a local point of contact for
                    the dissemination of information on risk
                    management options available to farmers and
                    ranchers; and
              (4) other Federal agencies, in assisting the Board in
            any way the Board determines is necessary in carrying
            out this subtitle.
      (g) Specialty Crops Coordinator.--
              (1) In general.--The Corporation shall establish a
            management-level position to be known as the Specialty
            Crops Coordinator.
      [(2) The Specialty Crops Coordinator shall have primary
    responsibility for addressing the needs of specialty crop
    producers, and for providing information and advice, in
    connection with the activities of the Corporation to improve
    and expand the insurance program for specialty crops. In
    carrying out this paragraph, the Specialty Crops Coordinator
    shall act as the liaison of the Corporation with
    representatives of specialty crop producers and assist the
    Corporation with the knowledge, expertise, and familiarity of
    the producers with risk management and production issues
    pertaining to specialty crops.]
              (2) Responsibilities.--
                      (A) In general.--The Specialty Crops
                    Coordinator shall have primary responsibility
                    for addressing the needs of specialty crop
                    producers, and for providing information and
                    advice, in connection with the activities of
                    the Corporation to improve and expand the
                    insurance program for specialty crops.
                      (B) Other duties.--In carrying out this
                    paragraph, the Specialty Crops Coordinator
                    shall--
                              (i) act as the liaison of the
                            Corporation with representatives of
                            specialty crop producers and the
                            Specialty Crop Advisory Committee; and
                              (ii) assist the Corporation with the
                            knowledge, expertise, and familiarity
                            of the producers with risk management
                            and production issues pertaining to
                            specialty crops.
      (3) The Specialty Crops Coordinator shall use information
    collected from Corporation field office directors in States in
    which specialty crops have a significant economic effect and
    from other sources, including the extension service and
    colleges and universities.
              (4) Specialty crop liaisons.--The Specialty Crops
            Coordinator shall--
                      (A) designate a Specialty Crops Liaison in
                    each regional field office; and
                      (B) share the contact information of the
                    Specialty Crops Liaisons with specialty crop
                    producers.
              (5) Website.--The Specialty Crops Coordinator shall
            establish a website focused on the efforts of the
            Corporation to provide and expand crop insurance for
            specialty crop producers.

    SEC. 508. CROP INSURANCE.

      (a) Authority to Offer Insurance.--
              (1) In general.--If sufficient actuarial data are
            available (as determined by the Corporation), the
            Corporation may insure, or provide reinsurance for
            insurers of, producers of agricultural commodities
            grown in the United States under 1 or more plans of
            insurance determined by the Corporation to be adapted
            to the agricultural commodity concerned. To qualify for
            coverage under a plan of insurance, the losses of the
            insured commodity must be due to drought, flood, or
            other natural disaster (as determined by the Secretary)
            or a decline in the market price of the insured
            commodity, so long as such decline was not directly
            caused by the producer (as determined by the
            Secretary).
              (2) Period.--Except in the cases of tobacco,
            potatoes, sweet potatoes, and hemp, insurance shall not
            extend beyond the period during which the insured
            commodity is in the field. As used in the preceding
            sentence, in the case of an aquacultural species, the
            term ``field'' means the environment in which the
            commodity is produced.
              (3) Exclusion of losses due to certain actions of
            producer.--
                      (A) Exclusions.--Insurance provided under
                    this subsection shall not cover losses due to--
                              (i) the neglect or malfeasance of the
                            producer;
                              (ii) the failure of the producer to
                            reseed to the same crop in such areas
                            and under such circumstances as it is
                            customary to reseed; or
                              (iii) the failure of the producer to
                            follow good farming practices,
                            including scientifically sound
                            sustainable and organic farming
                            practices.
                      (B) Good farming practices determination
                    review.--
                              (i) Informal administrative
                            process.--A producer shall have the
                            right to a review of a determination
                            regarding good farming practices made
                            under subparagraph (A)(iii) in
                            accordance with an informal
                            administrative process to be
                            established by the Corporation.
                              (ii) Administrative review.--
                                      (I) No adverse decision.--The
                                    determination shall not be
                                    considered an adverse decision
                                    for purposes of subtitle H of
                                    the Department of Agriculture
                                    Reorganization Act of 1994 (7
                                    U.S.C. 6991 et seq.).
                                      (II) Reversal or
                                    modification.--Except as
                                    provided in clause (i), the
                                    determination may not be
                                    reversed or modified as the
                                    result of a subsequent
                                    administrative review.
                              (iii) Judicial review.--
                                      (I) Right to review.--A
                                    producer shall have the right
                                    to judicial review of the
                                    determination without
                                    exhausting any right to a
                                    review under clause (i).
                                      (II) Reversal or
                                    modification.--The
                                    determination may not be
                                    reversed or modified as the
                                    result of judicial review
                                    unless the determination is
                                    found to be arbitrary or
                                    capricious.
                      (C) Limitation on revenue coverage for
                    potatoes.--No policy or plan of insurance
                    provided under this subtitle (including a
                    policy or plan of insurance approved by the
                    Board under subsection (h)) shall cover losses
                    due to a reduction in revenue for potatoes
                    except as covered under a whole farm policy or
                    plan of insurance, as determined by the
                    Corporation.
              (4) Expansion to other areas or single producers.--
                      (A) Area expansion.--The Corporation may
                    offer plans of insurance or reinsurance for
                    production of agricultural commodities in the
                    Commonwealth of Puerto Rico, the Virgin
                    Islands, Guam, American Samoa, the Commonwealth
                    of the Northern Mariana Islands, the Republic
                    of the Marshall Islands, the Federated States
                    of Micronesia, and the Republic of Palau in the
                    same manner as provided in this section for
                    production of agricultural commodities in the
                    United States.
                      (B) Producer expansion.--In an area in the
                    United States or specified in subparagraph (A)
                    where crop insurance is not available for a
                    particular agricultural commodity, the
                    Corporation may offer to enter into a written
                    agreement with an individual producer operating
                    in the area for insurance coverage under this
                    subtitle if the producer has actuarially sound
                    data relating to the production by the producer
                    of the commodity or similar commodities and the
                    data is acceptable to the Corporation.
              (5) Dissemination of crop insurance information.--
                      (A) Available information.--The Corporation
                    shall make available to producers through local
                    offices of the Department--
                              (i) current and complete information
                            on all aspects of Federal crop
                            insurance; and
                              (ii) a listing of insurance agents
                            and companies offering to sell crop
                            insurance in the area of the producers.
                      (B) Use of electronic methods.--
                              (i) Dissemination by corporation.--
                            The Corporation shall make the
                            information described in subparagraph
                            (A) available electronically to
                            producers and approved insurance
                            providers.
                              (ii) Submission to corporation.--To
                            the maximum extent practicable, the
                            Corporation shall allow producers and
                            approved insurance providers to use
                            electronic methods to submit
                            information required by the
                            Corporation.
              (6) Addition of new and specialty crops (including
            value-added crops).--
                      (A) Annual review.--Not later than 1 year
                    after the date of enactment of the Agriculture
                    Improvement Act of 2018, and annually
                    thereafter, the manager of the Corporation (in
                    consultation with the Specialty Crop Advisory
                    Committee) shall prepare, to the maximum extent
                    practicable, based on data shared from the
                    noninsured crop disaster assistance program
                    established by section 196 of the Federal
                    Agriculture Improvement and Reform Act of 1996
                    (7 U.S.C. 7333), written agreements, or other
                    data, and present to the Board not less than 1
                    of each of the following:
                              (i) Research and development for a
                            policy or plan of insurance for a
                            commodity for which there is no
                            existing policy or plan of insurance.
                              (ii) Expansion of an existing policy
                            or plan of insurance to additional
                            counties or States, including malting
                            barley endorsements or contract
                            options.
                              (iii) Research and development for a
                            new policy or plan of insurance, or
                            endorsement, for commodities with
                            existing policies or plans of
                            insurance, such as dollar plans.
                      (B) Report.--Not later than 1 year after the
                    date of enactment of this paragraph, and
                    annually thereafter, the Corporation shall
                    report to Congress on the progress and expected
                    timetable for expanding crop insurance coverage
                    under this subtitle to new and specialty crops.
              (7) Adequate coverage for states and underserved
            producers.--
                      (A) Definitions.--In this paragraph:
                              (i) Adequately served.--The term
                            ``adequately served'' means having a
                            participation rate, by crop, that is at
                            least 50 percent of the national
                            average participation rate.
                              (ii) Underserved producer.--The term
                            ``underserved producer'' means an
                            individual (including a member of an
                            Indian Tribe) that is--
                                      (I) a beginning farmer or
                                    rancher;
                                      (II) a veteran farmer or
                                    rancher; or
                                      (III) a socially
                                    disadvantaged farmer or
                                    rancher.
                      (B) Review.--Using resources and information
                    available to the Board or the Secretary, the
                    Board shall review the policies and plans of
                    insurance that are offered by approved
                    insurance providers under this subtitle,
                    including policies and plans of insurance for
                    underserved producers, to determine if each
                    State is adequately served by the policies and
                    plans of insurance.
                      (C) Report.--
                              (i) In general.--Not later than 30
                            days after completion of the review
                            under subparagraph (B), and not less
                            frequently than once every 3 years
                            thereafter, the Board shall make
                            publicly available and 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 review.
                              (ii) Recommendations.--The report
                            under clause (i) shall include
                            recommendations to increase
                            participation in States and among
                            underserved producers that are not
                            adequately served by the policies and
                            plans of insurance, including any plans
                            for administrative action or
                            recommendations for Congressional
                            action.
              (8) Special provisions for cotton and rice.--
            Notwithstanding any other provision of this subtitle,
            beginning with the 2001 crops of upland cotton, extra
            long staple cotton, and rice, the Corporation shall
            offer plans of insurance, including prevented planting
            coverage and replanting coverage, under this subtitle
            that cover losses of upland cotton, extra long staple
            cotton, and rice resulting from failure of irrigation
            water supplies due to drought and saltwater intrusion.
              (9) Premium adjustments.--
                      (A) Prohibition.--Except as provided in
                    subparagraph (B), no person shall pay, allow,
                    or give, or offer to pay, allow, or give,
                    directly or indirectly, either as an inducement
                    to procure insurance or after insurance has
                    been procured, any rebate, discount, abatement,
                    credit, or reduction of the premium named in an
                    insurance policy or any other valuable
                    consideration or inducement not specified in
                    the policy.
                      (B) Exceptions.--Subparagraph (A) does not
                    apply with respect to--
                              (i) a payment authorized under
                            subsection (b)(5)(B);
                              (ii) a performance-based discount
                            authorized under subsection (d)(3); or
                              (iii) a patronage dividend, or
                            similar payment, that is paid--
                                      (I) by an entity that was
                                    approved by the Corporation to
                                    make such payments for the
                                    2005, 2006, or 2007 reinsurance
                                    year, in accordance with
                                    subsection (b)(5)(B) as in
                                    effect on the day before the
                                    date of enactment of this
                                    paragraph; and
                                      (II) in a manner consistent
                                    with the payment plan approved
                                    in accordance with that
                                    subsection for the entity by
                                    the Corporation for the
                                    applicable reinsurance year.
                      (C) Publication of violations.--
                              (i) Publication required.--Subject to
                            clause (ii), the Corporation shall
                            publish in a timely manner on the
                            website of the Risk Management Agency
                            information regarding each violation of
                            this paragraph, including any sanctions
                            imposed in response to the violation,
                            in sufficient detail so that the
                            information may serve as effective
                            guidance to approved insurance
                            providers, agents, and producers.
                              (ii) Protection of privacy.--In
                            providing information under clause (i)
                            regarding violations of this paragraph,
                            the Corporation shall redact the
                            identity of the persons and entities
                            committing the violations in order to
                            protect the privacy of those persons
                            and entities.
              (10) Commissions.--
                      (A) Definition of immediate family.--In this
                    paragraph, the term ``immediate family'' means
                    an individual's father, mother, stepfather,
                    stepmother, brother, sister, stepbrother,
                    stepsister, son, daughter, stepson,
                    stepdaughter, grandparent, grandson,
                    granddaughter, father-in-law, mother-in-law,
                    brother-in-law, sister-in-law, son-in-law,
                    daughter-in-law, the spouse of the foregoing,
                    and the individual's spouse.
                      (B) Prohibition.--No individual (including a
                    subagent) may receive directly, or indirectly
                    through an entity, any compensation (including
                    any commission, profit sharing, bonus, or any
                    other direct or indirect benefit) for the sale
                    or service of a policy or plan of insurance
                    offered under this subtitle if--
                              (i) the individual has a substantial
                            beneficial interest, or a member of the
                            individual's immediate family has a
                            substantial beneficial interest, in the
                            policy or plan of insurance; and
                              (ii) the total compensation to be
                            paid to the individual with respect to
                            the sale or service of the policies or
                            plans of insurance that meet the
                            condition described in clause (i)
                            exceeds 30 percent or the percentage
                            specified in State law, whichever is
                            less, of the total of all compensation
                            received directly or indirectly by the
                            individual for the sale or service of
                            all policies and plans of insurance
                            offered under this subtitle for the
                            reinsurance year.
                      (C) Reporting.--Not later than 90 days after
                    the annual settlement date of the reinsurance
                    year, any individual that received directly or
                    indirectly any compensation for the service or
                    sale of any policy or plan of insurance offered
                    under this subtitle in the prior reinsurance
                    year shall certify to applicable approved
                    insurance providers that the compensation that
                    the individual received was in compliance with
                    this paragraph.
                      (D) Sanctions.--The procedural requirements
                    and sanctions prescribed in section 515(h)
                    shall apply to the prosecution of a violation
                    of this paragraph.
                      (E) Applicability.--
                              (i) In general.--Sanctions for
                            violations under this paragraph shall
                            only apply to the individuals or
                            entities directly responsible for the
                            certification required under
                            subparagraph (C) or the failure to
                            comply with the requirements of this
                            paragraph.
                              (ii) Prohibition.--No sanctions shall
                            apply with respect to the policy or
                            plans of insurance upon which
                            compensation is received, including the
                            reinsurance for those policies or
                            plans.
              (11) Cover crops.--
                      (A) In general.--The voluntary practice of
                    cover cropping shall be considered a good
                    farming practice under paragraph (3)(A)(iii) if
                    the cover crop is terminated in accordance with
                    subparagraph (B).
                      (B) Termination.--
                              (i) In general.--The termination of a
                            cover crop shall be carried out
                            according to--
                                      (I) guidelines established by
                                    the Secretary; or
                                      (II) an exception to the
                                    guidelines approved under
                                    clause (ii).
                              (ii) Exception to guidelines.--The
                            Corporation shall approve an exception
                            to the guidelines under clause (i)(I)
                            if that exception is recommended by--
                                      (I) the Natural Resources
                                    Conservation Service; or
                                      (II) an agricultural expert,
                                    as determined by the
                                    Corporation, unless the
                                    exception is determined to be
                                    unreasonable by the
                                    Corporation.
                      (C) Insurability of subsequent crop.--Cover
                    crop termination shall not affect the
                    insurability of a subsequently planted
                    insurable crop if the cover crop is terminated
                    in accordance with subparagraph (B).
                      (D) Summer fallow.--In a county in which
                    summer fallow is an insurable practice, a cover
                    crop in that county that is terminated in
                    accordance with subparagraph (B) shall be
                    considered as summer fallow for the purpose of
                    insurability.
      (b) Catastrophic Risk Protection.--
              (1) Coverage availability.--The Corporation shall
            offer a catastrophic risk protection plan to indemnify
            producers for crop loss due to loss of yield or
            prevented planting, if provided by the Corporation,
            when the producer is unable, because of drought, flood,
            or other natural disaster (as determined by the
            Secretary), to plant other crops for harvest on the
            acreage for the crop year.
              (2) Amount of coverage.--
                      (A) In general.--Subject to subparagraph
                    (B)--
                              (i) in the case of each of the 1995
                            through 1998 crop years, catastrophic
                            risk protection shall offer a producer
                            coverage for a 50 percent loss in
                            yield, on an individual yield or area
                            yield basis, indemnified at 60 percent
                            of the expected market price, or a
                            comparable coverage (as determined by
                            the Corporation); and
                              (ii) in the case of each of the 1999
                            and subsequent crop years, catastrophic
                            risk protection shall offer a producer
                            coverage for a 50 percent loss in
                            yield, on an individual yield or area
                            yield basis, indemnified at 55 percent
                            of the expected market price, or a
                            comparable coverage (as determined by
                            the Corporation).
                      (B) Reduction in actual payment.--The amount
                    paid to a producer on a claim under
                    catastrophic risk protection may reflect a
                    reduction that is proportional to the out-of-
                    pocket expenses that are not incurred by the
                    producer as a result of not planting, growing,
                    or harvesting the crop for which the claim is
                    made, as determined by the Corporation.
              (3) Alternative catastrophic coverage.--Beginning
            with the 2001 crop year, the Corporation shall offer
            producers of an agricultural commodity the option of
            selecting either of the following:
                      (A) The catastrophic risk protection coverage
                    available under paragraph (2)(A).
                      (B) An alternative catastrophic risk
                    protection coverage that--
                              (i) indemnifies the producer on an
                            area yield and loss basis if such a
                            policy or plan of insurance is offered
                            for the agricultural commodity in the
                            county in which the farm is located;
                              (ii) provides, on a uniform national
                            basis, a higher combination of yield
                            and price protection than the coverage
                            available under paragraph (2)(A); and
                              (iii) the Corporation determines is
                            comparable to the coverage available
                            under paragraph (2)(A) for purposes of
                            subsection (e)(2)(A).
              (4) Sale of catastrophic risk coverage.--
                      (A) In general.--Catastrophic risk coverage
                    may be offered by--
                              (i) approved insurance providers, if
                            available in an area; and
                              (ii) at the option of the Secretary
                            that is based on considerations of
                            need, local offices of the Department.
                      (B) Need.--For purposes of considering need
                    under subparagraph (A)(ii), the Secretary may
                    take into account the most efficient and cost-
                    effective use of resources, the availability of
                    personnel, fairness to local producers, the
                    needs and convenience of local producers, and
                    the availability of private insurance carriers.
                      (C) Delivery of coverage.--
                              (i) In general.--In full consultation
                            with approved insurance providers, the
                            Secretary may continue to offer
                            catastrophic risk protection in a State
                            (or a portion of a State) through local
                            offices of the Department if the
                            Secretary determines that there is an
                            insufficient number of approved
                            insurance providers operating in the
                            State or portion of the State to
                            adequately provide catastrophic risk
                            protection coverage to producers.
                              (ii) Coverage by approved insurance
                            providers.--To the extent that
                            catastrophic risk protection coverage
                            by approved insurance providers is
                            sufficiently available in a State (or a
                            portion of a State) as determined by
                            the Secretary, only approved insurance
                            providers may provide the coverage in
                            the State or portion of the State.
                              (iii) Timing of determinations.--Not
                            later than 90 days after the date of
                            enactment of this subparagraph, the
                            Secretary shall announce the results of
                            the determinations under clause (i) for
                            policies for the 1997 crop year. For
                            subsequent crop years, the Secretary
                            shall make the announcement not later
                            than April 30 of the year preceding the
                            year in which the crop will be
                            produced, or at such other times during
                            the year as the Secretary finds
                            practicable in consultation with
                            affected crop insurance providers for
                            those States (or portions of States) in
                            which catastrophic coverage remains
                            available through local offices of the
                            Department.
                              (iv) Current policies.--This clause
                            shall take effect beginning with the
                            1997 crop year. Subject to clause (ii)
                            all catastrophic risk protection
                            policies written by local offices of
                            the Department shall be transferred to
                            the approved insurance provider for
                            performance of all sales, service, and
                            loss adjustment functions. Any fees in
                            connection with such policies that are
                            not yet collected at the time of the
                            transfer shall be payable to the
                            approved insurance providers assuming
                            the policies. The transfer process for
                            policies for the 1997 crop year with
                            sales closing dates before January 1,
                            1997, shall begin at the time of the
                            Secretary's announcement under clause
                            (iii) and be completed by the sales
                            closing date for the crop and county.
                            The transfer process for all subsequent
                            policies (including policies for the
                            1998 and subsequent crop years) shall
                            begin at a date that permits the
                            process to be completed not later than
                            45 days before the sales closing date.
              (5) Administrative fee.--
                      (A) Basic fee.--Each producer shall pay an
                    administrative fee for catastrophic risk
                    protection in the amount of $655 per crop per
                    county.
                      (B) Payment of catastrophic risk protection
                    fee on behalf of producers.--
                              (i) Payment authorized.--If State law
                            permits a licensing fee to be paid by
                            an insurance provider to a cooperative
                            association or trade association and
                            rebated to a producer through the
                            payment of catastrophic risk protection
                            administrative fees, a cooperative
                            association or trade association
                            located in that State may pay, on
                            behalf of a member of the association
                            in that State or a contiguous State who
                            consents to be insured under such an
                            arrangement, all or a portion of the
                            administrative fee required by this
                            paragraph for catastrophic risk
                            protection.
                              (ii) Selection of provider.--Nothing
                            in this subparagraph limits the option
                            of a producer to select the licensed
                            insurance agent or other approved
                            insurance provider from whom the
                            producer will purchase a policy or plan
                            of insurance or to refuse coverage for
                            which a payment is offered to be made
                            under clause (i).
                              (iii) Delivery of insurance.--
                            Catastrophic risk protection coverage
                            for which a payment is made under
                            clause (i) shall be delivered by a
                            licensed insurance agent or other
                            approved insurance provider.
                              (iv) Additional coverage
                            encouraged.--A cooperative association
                            or trade association, and any approved
                            insurance provider with whom a
                            licensing fee is made, shall encourage
                            producer members to purchase
                            appropriate levels of coverage in order
                            to meet the risk management needs of
                            the member producers.
                      (C) Time for payment.--The administrative fee
                    required by this paragraph shall be paid by the
                    producer on the same date on which the premium
                    for a policy of additional coverage would be
                    paid by the producer.
                      (D) Use of fees.--
                              (i) In general.--The amounts paid
                            under this paragraph shall be deposited
                            in the crop insurance fund established
                            under section 516(c), to be available
                            for the programs and activities of the
                            Corporation.
                              (ii) Limitation.--No funds deposited
                            in the crop insurance fund under this
                            subparagraph may be used to compensate
                            an approved insurance provider or agent
                            for the delivery of services under this
                            subsection.
                      (E) Waiver of fee.--
                              (i) In general.--The Corporation
                            shall waive the amounts required under
                            this paragraph for limited resource
                            farmers and beginning farmers or
                            ranchers, as defined by the
                            Corporation, and veteran farmers or
                            ranchers.
                              (ii) Coordination.--The Corporation
                            shall coordinate with other agencies of
                            the Department that provide programs or
                            services to farmers and ranchers
                            described in clause (i) to make
                            available coverage under the waiver
                            under that clause and to share
                            eligibility information to reduce
                            paperwork and avoid duplication.
              (6) Participation requirement.--A producer may obtain
            catastrophic risk coverage for a crop of the producer
            on land in the county only if the producer obtains the
            coverage for the crop on all insurable land of the
            producer in the county.
              (7) Limitation due to risk.--The Corporation may
            limit catastrophic risk coverage in any county or area,
            or on any farm, on the basis of the insurance risk
            concerned.
              (8) Transitional coverage for 1995 crops.--Effective
            only for a 1995 crop planted or for which insurance
            attached prior to January 1, 1995, the Corporation
            shall allow producers of the crops until not later than
            the end of the 180-day period beginning on the date of
            enactment of the Federal Crop Insurance Reform Act of
            1994 to obtain catastrophic risk protection for the
            crop. On enactment of such Act, a producer who made
            timely purchases of a crop insurance policy before the
            date of enactment of such Act, under the provisions of
            this subtitle then in effect, shall be eligible for the
            same benefits to which a producer would be entitled
            under comparable additional coverage under subsection
            (c).
              (9) Simplification.--
                      (A) Catastrophic risk protection plans.--In
                    developing and carrying out the policies and
                    procedures for a catastrophic risk protection
                    plan under this subtitle, the Corporation
                    shall, to the maximum extent practicable,
                    minimize the paperwork required and the
                    complexity and costs of procedures governing
                    applications for, processing, and servicing of
                    the plan for all parties involved.
                      (B) Other plans.--To the extent that the
                    policies and procedures developed under
                    subparagraph (A) may be applied to other plans
                    of insurance offered under this subtitle
                    without jeopardizing the actuarial soundness or
                    integrity of the crop insurance program, the
                    Corporation shall apply the policies and
                    procedures to the other plans of insurance
                    within a reasonable period of time (as
                    determined by the Corporation) after the
                    effective date of this paragraph.
              (10) Loss adjustment.--The rate for reimbursing an
            approved insurance provider or agent for expenses
            incurred by the approved insurance provider or agent
            for loss adjustment in connection with a policy of
            catastrophic risk protection shall not exceed 6 percent
            of the premium for catastrophic risk protection that is
            used to define loss ratio.
      (c) General Coverage Levels.--
              (1) Additional coverage generally.--
                      (A) In general.--The Corporation shall offer
                    to producers of agricultural commodities grown
                    in the United States plans of crop insurance
                    that provide additional coverage.
                      (B) Purchase.--To be eligible for additional
                    coverage, a producer must apply to an approved
                    insurance provider for purchase of additional
                    coverage if the coverage is available from an
                    approved insurance provider. If additional
                    coverage is unavailable privately, the
                    Corporation may offer additional coverage plans
                    of insurance directly to producers.
              (2) Transfer of relevant information.--If a producer
            has already applied for catastrophic risk protection at
            the local office of the Department and elects to
            purchase additional coverage, the relevant information
            for the crop of the producer shall be transferred to
            the approved insurance provider servicing the
            additional coverage crop policy.
              (3) Yield and loss basis options.--A producer shall
            have the option of purchasing additional coverage based
            on--
                      (A)(i) an individual yield and loss basis;
                      (ii) an area yield and loss basis;
                      (B) an individual yield and loss basis,
                    supplemented with coverage based on an area
                    yield and loss basis to cover a part of the
                    deductible under the individual yield and loss
                    policy, as described in paragraph (4)(C); or
                      (C) a margin basis alone or in combination
                    with the coverages available under subparagraph
                    (A) or (B).
              (4) Level of coverage.--
                      (A) Dollar denomination and percentage of
                    yield.--Except as provided in subparagraph (C),
                    the level of coverage--
                              (i) shall be dollar denominated; and
                              (ii) may be purchased at any level
                            not to exceed--
                                      (I) in the case of the
                                    individual yield or revenue
                                    coverage, 85 percent;
                                      (II) in the case of
                                    individual yield or revenue
                                    coverage aggregated across
                                    multiple commodities, 90
                                    percent; and
                                      (III) in the case of area
                                    yield or revenue coverage (as
                                    determined by the Corporation),
                                    95 percent.
                      (B) Information.--The Corporation shall
                    provide producers with information on
                    catastrophic risk and additional coverage in
                    terms of dollar coverage (within the allowable
                    limits of coverage provided in this paragraph).
                      (C) Supplemental coverage option.--
                              (i) In general.--Notwithstanding
                            subparagraph (A), in the case of the
                            supplemental coverage option described
                            in paragraph (3)(B), the Corporation
                            shall offer producers the opportunity
                            to purchase coverage in combination
                            with a policy or plan of insurance
                            offered under this subtitle that would
                            allow indemnities to be paid to a
                            producer equal to a part of the
                            deductible under the policy or plan of
                            insurance--
                                      (I) at a county-wide level to
                                    the fullest extent practicable;
                                    or
                                      (II) in counties that lack
                                    sufficient data, on the basis
                                    of such larger geographical
                                    area as the Corporation
                                    determines to provide
                                    sufficient data for purposes of
                                    providing the coverage.
                              (ii) Trigger.--Coverage offered under
                            paragraph (3)(B) and clause (i) shall
                            be triggered only if the losses in the
                            area exceed 10 percent of normal levels
                            (as determined by the Corporation).
                              (iii) Coverage.--Subject to the
                            trigger described in clause (ii),
                            coverage offered under paragraph (3)(B)
                            and clause (i) shall not exceed the
                            difference between--
                                      (I) 90 percent; and
                                      (II) the coverage level
                                    selected by the producer for
                                    the underlying policy or plan
                                    of insurance.
                              (iv) Ineligible [crops and] acres.--
                            Acres that are enrolled in the stacked
                            income protection plan under section
                            508B shall not be eligible for
                            supplemental coverage under this
                            subparagraph.
                              (v) Calculation of premium.--
                            Notwithstanding subsection (d), the
                            premium for coverage offered under
                            paragraph (3)(B) and clause (i) shall--
                                      (I) be sufficient to cover
                                    anticipated losses and a
                                    reasonable reserve; and
                                      (II) include an amount for
                                    operating and administrative
                                    expenses established in
                                    accordance with subsection
                                    (k)(4)(F).
              (5) Expected market price.--
                      (A) Establishment or approval.--For the
                    purposes of this subtitle, the Corporation
                    shall establish or approve the price level
                    (referred to in this subtitle as the ``expected
                    market price'') of each agricultural commodity
                    for which insurance is offered.
                      (B) General rule.--Except as otherwise
                    provided in subparagraph (C), the expected
                    market price of an agricultural commodity shall
                    be not less than the projected market price of
                    the agricultural commodity, as determined by
                    the Corporation.
                      (C) Other authorized approaches.--The
                    expected market price of an agricultural
                    commodity--
                              (i) may be based on the actual market
                            price of the agricultural commodity at
                            the time of harvest, as determined by
                            the Corporation;
                              (ii) in the case of revenue and other
                            similar plans of insurance, may be the
                            actual market price of the agricultural
                            commodity, as determined by the
                            Corporation;
                              (iii) in the case of cost of
                            production or similar plans of
                            insurance, shall be the projected cost
                            of producing the agricultural
                            commodity, as determined by the
                            Corporation; or
                              (iv) in the case of other plans of
                            insurance, may be an appropriate
                            amount, as determined by the
                            Corporation.
                      (D) Grain sorghum price election.--
                              (i) In general.--The Corporation, in
                            conjunction with the Secretary
                            (referred to in this subparagraph as
                            the ``Corporation''), shall--
                                      (I) not later than 60 days
                                    after the date of enactment of
                                    this subparagraph, make
                                    available all methods and data,
                                    including data from the
                                    Economic Research Service, used
                                    by the Corporation to develop
                                    the expected market prices for
                                    grain sorghum under the
                                    production and revenue-based
                                    plans of insurance of the
                                    Corporation; and
                                      (II) request applicable data
                                    from the grain sorghum
                                    industry.
                              (ii) Expert reviewers.--
                                      (I) In general.--Not later
                                    than 120 days after the date of
                                    enactment of this subparagraph,
                                    the Corporation shall contract
                                    individually with 5 expert
                                    reviewers described in
                                    subclause (II) to develop and
                                    recommend a methodology for
                                    determining an expected market
                                    price for sorghum for both the
                                    production and revenue-based
                                    plans of insurance to more
                                    accurately reflect the actual
                                    price at harvest.
                                      (II) Requirements.--The
                                    expert reviewers under
                                    subclause (I) shall be
                                    comprised of agricultural
                                    economists with experience in
                                    grain sorghum and corn markets,
                                    of whom--
                                              (aa) 2 shall be
                                            agricultural economists
                                            of institutions of
                                            higher education;
                                              (bb) 2 shall be
                                            economists from within
                                            the Department; and
                                              (cc) 1 shall be an
                                            economist nominated by
                                            the grain sorghum
                                            industry.
                              (iii) Recommendations.--
                                      (I) In general.--Not later
                                    than 90 days after the date of
                                    contracting with the expert
                                    reviewers under clause (ii),
                                    the expert reviewers shall
                                    submit, and the Corporation
                                    shall make available to the
                                    public, the recommendations of
                                    the expert reviewers.
                                      (II) Consideration.--The
                                    Corporation shall consider the
                                    recommendations under subclause
                                    (I) when determining the
                                    appropriate pricing methodology
                                    to determine the expected
                                    market price for grain sorghum
                                    under both the production and
                                    revenue-based plans of
                                    insurance.
                                      (III) Publication.--Not later
                                    than 60 days after the date on
                                    which the Corporation receives
                                    the recommendations of the
                                    expert reviewers, the
                                    Corporation shall publish the
                                    proposed pricing methodology
                                    for both the production and
                                    revenue-based plans of
                                    insurance for notice and
                                    comment and, during the comment
                                    period, conduct at least 1
                                    public meeting to discuss the
                                    proposed pricing methodologies.
                              (iv) Appropriate pricing
                            methodology.--
                                      (I) In general.--Not later
                                    than 180 days after the close
                                    of the comment period in clause
                                    (iii)(III), but effective not
                                    later than the 2010 crop year,
                                    the Corporation shall implement
                                    a pricing methodology for grain
                                    sorghum under the production
                                    and revenue-based plans of
                                    insurance that is transparent
                                    and replicable.
                                      (II) Interim methodology.--
                                    Until the date on which the new
                                    pricing methodology is
                                    implemented, the Corporation
                                    may continue to use the pricing
                                    methodology that the
                                    Corporation determines best
                                    establishes the expected market
                                    price.
                                      (III) Availability.--On an
                                    annual basis, the Corporation
                                    shall make available the
                                    pricing methodology and data
                                    used to determine the expected
                                    market prices for grain sorghum
                                    under the production and
                                    revenue-based plans of
                                    insurance, including any
                                    changes to the methodology used
                                    to determine the expected
                                    market prices for grain sorghum
                                    from the previous year.
              (6) Price elections.--
                      (A) In general.--Subject to subparagraph (B),
                    insurance coverage shall be made available to a
                    producer on the basis of any price election
                    that equals or is less than the price election
                    established by the Corporation. The coverage
                    shall be quoted in terms of dollars per acre.
                      (B) Minimum price elections.--The Corporation
                    may establish minimum price elections below
                    which levels of insurance shall not be offered.
                      (C) Wheat classes and malting barley.--The
                    Corporation shall, as the Corporation
                    determines practicable, offer producers
                    different price elections for classes of wheat
                    and malting barley (including contract prices
                    in the case of malting barley), in addition to
                    the standard price election, that reflect
                    different market prices, as determined by the
                    Corporation. The Corporation shall, as the
                    Corporation determines practicable, offer
                    additional coverage for each class determined
                    under this subparagraph and charge a premium
                    for each class that is actuarially sound.
                      (D) Organic crops.--
                              (i) In general.--As soon as possible,
                            but not later than the 2015 reinsurance
                            year, the Corporation shall offer
                            producers of organic crops price
                            elections for all organic crops
                            produced in compliance with standards
                            issued by the Department of Agriculture
                            under the national organic program
                            established under the Organic Foods
                            Production Act of 1990 (7 U.S.C. 6501
                            et seq.) that reflect the actual retail
                            or wholesale prices, as appropriate,
                            received by producers for organic
                            crops, as determined by the Secretary
                            using all relevant sources of
                            information.
                              (ii) Annual report.--The Corporation
                            shall submit to the Committee on
                            Agriculture of the House of
                            Representatives and the Committee on
                            Agriculture, Nutrition, and Forestry of
                            the Senate an annual report on progress
                            made in developing and improving
                            Federal crop insurance for organic
                            crops, including--
                                      (I) the numbers and varieties
                                    of organic crops insured;
                                      (II) the progress of
                                    implementing the price
                                    elections required under this
                                    subparagraph, including the
                                    rate at which additional price
                                    elections are adopted for
                                    organic crops;
                                      (III) the development of new
                                    insurance approaches relevant
                                    to organic producers; and
                                      (IV) any recommendations the
                                    Corporation considers
                                    appropriate to improve Federal
                                    crop insurance coverage for
                                    organic crops.
              (7) Fire and hail coverage.--For levels of additional
            coverage equal to 65 percent or more of the recorded or
            appraised average yield indemnified at 100 percent of
            the expected market price, or an equivalent coverage, a
            producer may elect to delete from the additional
            coverage any coverage against damage caused by fire and
            hail if the producer obtains an equivalent or greater
            dollar amount of coverage for damage caused by fire and
            hail from an approved insurance provider. On written
            notice of the election to the company issuing the
            policy providing additional coverage and submission of
            evidence of substitute coverage on the commodity
            insured, the premium of the producer shall be reduced
            by an amount determined by the Corporation to be
            actuarially appropriate, taking into account the
            actuarial value of the remaining coverage provided by
            the Corporation. In no event shall the producer be
            given credit for an amount of premium determined to be
            greater than the actuarial value of the protection
            against losses caused by fire and hail that is included
            in the additional coverage for the crop.
              (8) State premium subsidies.--The Corporation may
            enter into an agreement with any State or agency of a
            State under which the State or agency may pay to the
            approved insurance provider an additional premium
            subsidy to further reduce the portion of the premium
            paid by producers in the State.
              (9) Limitations on additional coverage.--The Board
            may limit the availability of additional coverage under
            this subsection in any county or area, or on any farm,
            on the basis of the insurance risk involved. The Board
            shall not offer additional coverage equal to less than
            50 percent of the recorded or appraised average yield
            indemnified at 100 percent of the expected market
            price, or an equivalent coverage.
              (10) Administrative fee.--
                      (A) Fee required.--If a producer elects to
                    purchase coverage for a crop at a level in
                    excess of catastrophic risk protection, the
                    producer shall pay an administrative fee for
                    the additional coverage of $30 per crop per
                    county.
                      (B) Use of fees; waiver.--Subparagraphs (D)
                    and (E) of subsection (b)(5) shall apply with
                    respect to the collection and use of
                    administrative fees under this paragraph.
                      (C) Time for payment.--Subsection (b)(5)(C)
                    shall apply with respect to the collection date
                    for the administrative fee.
      (d) Premiums.--
              (1) Premiums required.--The Corporation shall fix
            adequate premiums for all the plans of insurance of the
            Corporation at such rates as the Board determines are
            actuarially sufficient to attain an expected loss ratio
            of not greater than--
                      (A) 1.1 through September 30, 1998;
                      (B) 1.075 for the period beginning October 1,
                    1998, and ending on the day before the date of
                    enactment of the Food, Conservation, and Energy
                    Act of 2008; and
                      (C) 1.0 on and after the date of enactment of
                    that Act.
              (2) Premium amounts.--The premium amounts for
            catastrophic risk protection under subsection (b) and
            additional coverage under subsection (c) shall be fixed
            as follows:
                      (A) In the case of catastrophic risk
                    protection, the amount of the premium
                    established by the Corporation for each crop
                    for which catastrophic risk protection is
                    available shall be reduced by the percentage
                    equal to the difference between the average
                    loss ratio for the crop and 100 percent, plus a
                    reasonable reserve, as determined by the
                    Corporation.
                      (B) In the case of additional coverage equal
                    to or greater than 50 percent of the recorded
                    or appraised average yield indemnified at not
                    greater than 100 percent of the expected market
                    price, or a comparable coverage for a policy or
                    plan of insurance that is not based on
                    individual yield, the amount of the premium
                    shall--
                              (i) be sufficient to cover
                            anticipated losses and a reasonable
                            reserve; and
                              (ii) include an amount for operating
                            and administrative expenses, as
                            determined by the Corporation, on an
                            industry-wide basis as a percentage of
                            the amount of the premium used to
                            define loss ratio.
              (3) Performance-based discount.--The Corporation may
            provide a performance-based premium discount for a
            producer of an agricultural commodity who has good
            insurance or production experience relative to other
            producers of that agricultural commodity in the same
            area, as determined by the Corporation.
              (4) Billing date for premiums.--Effective beginning
            with the 2012 reinsurance year, the Corporation shall
            establish August 15 as the billing date for premiums.
              (5) Limitation on interest accrual.--Effective
            beginning with the 2026 reinsurance year, in the case
            of a producer that is delinquent in paying a premium or
            administrative fee, an approved insurance provider may
            charge such producer with respect to such delinquency
            an amount less than or equal to 1 percent of the simple
            interest of the amount for which such producer is
            delinquent, for each month (not to exceed 60
            consecutive months) the producer is so delinquent.
      (e) Payment of Portion of Premium by Corporation.--
              (1) In general.--For the purpose of encouraging the
            broadest possible participation of producers in the
            catastrophic risk protection provided under subsection
            (b) and the additional coverage provided under
            subsection (c), the Corporation shall pay a part of the
            premium in the amounts provided in accordance with this
            subsection.
              (2) Amount of payment.--Subject to paragraphs (3),
            (6), and (7), the amount of the premium to be paid by
            the Corporation shall be as follows:
                      (A) In the case of catastrophic risk
                    protection, the amount shall be equivalent to
                    the premium established for catastrophic risk
                    protection under subsection (d)(2)(A).
                      (B) In the case of additional coverage equal
                    to or greater than 50 percent, but less than 55
                    percent, of the recorded or appraised average
                    yield indemnified at not greater than 100
                    percent of the expected market price, or a
                    comparable coverage for a policy or plan of
                    insurance that is not based on individual
                    yield, the amount shall be equal to the sum
                    of--
                              (i) 67 percent of the amount of the
                            premium established under subsection
                            (d)(2)(B)(i) for the coverage level
                            selected; and
                              (ii) the amount determined under
                            subsection (d)(2)(B)(ii) for the
                            coverage level selected to cover
                            operating and administrative expenses.
                      (C) In the case of additional coverage equal
                    to or greater than 55 percent, but less than 65
                    percent, of the recorded or appraised average
                    yield indemnified at not greater than 100
                    percent of the expected market price, or a
                    comparable coverage for a policy or plan of
                    insurance that is not based on individual
                    yield, the amount shall be equal to the sum
                    of--
                              (i) 69 percent of the amount of the
                            premium established under subsection
                            (d)(2)(B)(i) for the coverage level
                            selected; and
                              (ii) the amount determined under
                            subsection (d)(2)(B)(ii) for the
                            coverage level selected to cover
                            operating and administrative expenses.
                      (D) In the case of additional coverage equal
                    to or greater than 65 percent, but less than 75
                    percent, of the recorded or appraised average
                    yield indemnified at not greater than 100
                    percent of the expected market price, or a
                    comparable coverage for a policy or plan of
                    insurance that is not based on individual
                    yield, the amount shall be equal to the sum
                    of--
                              (i) 64 percent of the amount of the
                            premium established under subsection
                            (d)(2)(B)(i) for the coverage level
                            selected; and
                              (ii) the amount determined under
                            subsection (d)(2)(B)(ii) for the
                            coverage level selected to cover
                            operating and administrative expenses.
                      (E) In the case of additional coverage equal
                    to or greater than 75 percent, but less than 80
                    percent, of the recorded or appraised average
                    yield indemnified at not greater than 100
                    percent of the expected market price, or a
                    comparable coverage for a policy or plan of
                    insurance that is not based on individual
                    yield, the amount shall be equal to the sum
                    of--
                              (i) 60 percent of the amount of the
                            premium established under subsection
                            (d)(2)(B)(i) for the coverage level
                            selected; and
                              (ii) the amount determined under
                            subsection (d)(2)(B)(ii) for the
                            coverage level selected to cover
                            operating and administrative expenses.
                      (F) In the case of additional coverage equal
                    to or greater than 80 percent, but less than 85
                    percent, of the recorded or appraised average
                    yield indemnified at not greater than 100
                    percent of the expected market price, or a
                    comparable coverage for a policy or plan of
                    insurance that is not based on individual
                    yield, the amount shall be equal to the sum
                    of--
                              (i) 51 percent of the amount of the
                            premium established under subsection
                            (d)(2)(B)(i) for the coverage level
                            selected; and
                              (ii) the amount determined under
                            subsection (d)(2)(B)(ii) for the
                            coverage level selected to cover
                            operating and administrative expenses.
                      (G) Subject to subsection (c)(4), in the case
                    of additional coverage equal to or greater than
                    85 percent of the recorded or appraised average
                    yield indemnified at not greater than 100
                    percent of the expected market price, or a
                    comparable coverage for a policy or plan of
                    insurance that is not based on individual
                    yield, the amount shall be equal to the sum
                    of--
                              (i) 41 percent of the amount of the
                            premium established under subsection
                            (d)(2)(B)(i) for the coverage level
                            selected; and
                              (ii) the amount determined under
                            subsection (d)(2)(B)(ii) for the
                            coverage level selected to cover
                            operating and administrative expenses.
                      (H) In the case of the supplemental coverage
                    option authorized in subsection (c)(4)(C), the
                    amount shall be equal to the sum of--
                              (i) 80 percent of the additional
                            premium associated with the coverage;
                            and
                              (ii) the amount determined under
                            subsection (c)(4)(C)(v)(II), subject to
                            subsection (k)(4)(F), for the coverage
                            to cover operating and administrative
                            expenses.
              (3) Prohibition on continuous coverage.--
            Notwithstanding paragraph (2), during each of the 2001
            and subsequent reinsurance years, additional coverage
            under subsection (c) shall be available only in 5
            percent increments beginning at 50 percent of the
            recorded or appraised average yield.
              (4) Premium payment disclosure.--Each policy or plan
            of insurance under this subtitle shall prominently
            indicate the dollar amount of the portion of the
            premium paid by the Corporation.
              (5) Enterprise and whole farm units.--
                      (A) In general.--The Corporation may pay a
                    portion of the premiums for plans or policies
                    of insurance for which the insurable unit is
                    defined on a whole farm or enterprise unit
                    basis that is higher than would otherwise be
                    paid in accordance with paragraph (2).
                      (B) Amount.--The percentage of the premium
                    paid by the Corporation to a policyholder for a
                    policy with an enterprise or whole farm unit
                    under this paragraph shall, to the maximum
                    extent practicable, provide the same dollar
                    amount of premium subsidy per acre that would
                    otherwise have been paid by the Corporation
                    under paragraph (2) if the policyholder had
                    purchased a basic or optional unit for the crop
                    for the crop year.
                      (C) Limitation.--The amount of the premium
                    paid by the Corporation under this paragraph
                    may not exceed 80 percent of the total premium
                    for the enterprise or whole farm unit policy.
                      (D) Nonirrigated crops.--Beginning with the
                    2015 crop year, the Corporation shall make
                    available separate enterprise units for
                    irrigated and nonirrigated acreage of crops in
                    counties.
                      (E) Enterprise units across county lines.--
                    The Corporation may allow a producer to
                    establish a single enterprise unit by combining
                    an enterprise unit with--
                              (i) 1 or more other enterprise units
                            in 1 or more other counties; or
                              (ii) all basic units and all optional
                            units in 1 or more other counties.
              (6) Premium subsidy for area revenue plans.--Subject
            to paragraph (4), in the case of a policy or plan of
            insurance that covers losses due to a reduction in
            revenue in an area, the amount of the premium paid by
            the Corporation shall be as follows:
                      (A) In the case of additional area coverage
                    equal to or greater than 70 percent, but less
                    than 75 percent, of the recorded county yield
                    indemnified at not greater than 100 percent of
                    the expected market price, the amount shall be
                    equal to the sum of--
                              (i) 59 percent of the amount of the
                            premium established under subsection
                            (d)(2)(B)(i) for the coverage level
                            selected; and
                              (ii) the amount determined under
                            subsection (d)(2)(B)(ii) for the
                            coverage level selected to cover
                            operating and administrative expenses.
                      (B) In the case of additional area coverage
                    equal to or greater than 75 percent, but less
                    than 85 percent, of the recorded county yield
                    indemnified at not greater than 100 percent of
                    the expected market price, the amount shall be
                    equal to the sum of--
                              (i) 55 percent of the amount of the
                            premium established under subsection
                            (d)(2)(B)(i) for the coverage level
                            selected; and
                              (ii) the amount determined under
                            subsection (d)(2)(B)(ii) for the
                            coverage level selected to cover
                            operating and administrative expenses.
                      (C) In the case of additional area coverage
                    equal to or greater than 85 percent, but less
                    than 90 percent, of the recorded county yield
                    indemnified at not greater than 100 percent of
                    the expected market price, the amount shall be
                    equal to the sum of--
                              (i) 49 percent of the amount of the
                            premium established under subsection
                            (d)(2)(B)(i) for the coverage level
                            selected; and
                              (ii) the amount determined under
                            subsection (d)(2)(B)(ii) for the
                            coverage level selected to cover
                            operating and administrative expenses.
                      (D) In the case of additional area coverage
                    equal to or greater than 90 percent of the
                    recorded county yield indemnified at not
                    greater than 100 percent of the expected market
                    price, the amount shall be equal to the sum
                    of--
                              (i) 44 percent of the amount of the
                            premium established under subsection
                            (d)(2)(B)(i) for the coverage level
                            selected; and
                              (ii) the amount determined under
                            subsection (d)(2)(B)(ii) for the
                            coverage level selected to cover
                            operating and administrative expenses.
              (7) Premium subsidy for area yield plans.--Subject to
            paragraph (4), in the case of a policy or plan of
            insurance that covers losses due to a loss of yield or
            prevented planting in an area, the amount of the
            premium paid by the Corporation shall be as follows:
                      (A) In the case of additional area coverage
                    equal to or greater than 70 percent, but less
                    than 80 percent, of the recorded county yield
                    indemnified at not greater than 100 percent of
                    the expected market price, the amount shall be
                    equal to the sum of--
                              (i) 59 percent of the amount of the
                            premium established under subsection
                            (d)(2)(B)(i) for the coverage level
                            selected; and
                              (ii) the amount determined under
                            subsection (d)(2)(B)(ii) for the
                            coverage level selected to cover
                            operating and administrative expenses.
                      (B) In the case of additional area coverage
                    equal to or greater than 80 percent, but less
                    than 90 percent, of the recorded county yield
                    indemnified at not greater than 100 percent of
                    the expected market price, the amount shall be
                    equal to the sum of--
                              (i) 55 percent of the amount of the
                            premium established under subsection
                            (d)(2)(B)(i) for the coverage level
                            selected; and
                              (ii) the amount determined under
                            subsection (d)(2)(B)(ii) for the
                            coverage level selected to cover
                            operating and administrative expenses.
                      (C) In the case of additional area coverage
                    equal to or greater than 90 percent, of the
                    recorded county yield indemnified at not
                    greater than 100 percent of the expected market
                    price, the amount shall be equal to the sum
                    of--
                              (i) 51 percent of the amount of the
                            premium established under subsection
                            (d)(2)(B)(i) for the coverage level
                            selected; and
                              (ii) the amount determined under
                            subsection (d)(2)(B)(ii) for the
                            coverage level selected to cover
                            operating and administrative expenses.
              (8) Premium for beginning and veteran farmers or
            ranchers.--Notwithstanding any other provision of this
            subsection regarding payment of a portion of premiums,
            a beginning farmer or rancher or veteran farmer or
            rancher shall receive premium assistance that is 10
            percentage points greater than premium assistance that
            would otherwise be available under paragraphs (2)
            (except for subparagraph (A) of that paragraph), (5),
            (6), and (7) for the applicable policy, plan of
            insurance, and coverage level selected by the beginning
            farmer or rancher or veteran farmer or rancher.
              (9) Additional support.--
                      (A) In general.--In addition to any other
                    provision of this subsection (except paragraph
                    (2)(A)) regarding payment of a portion of
                    premiums, a beginning farmer or rancher or
                    veteran farmer or rancher shall receive
                    additional premium assistance that is the
                    number of percentage points specified in
                    subparagraph (B) greater than the premium
                    assistance that would otherwise be available
                    for the applicable policy, plan of insurance,
                    and coverage level selected by the beginning
                    farmer or rancher or veteran farmer or rancher.
                      (B) Percentage points adjustments.--The
                    percentage points referred to in subparagraph
                    (A) are the following:
                              (i) For each of the first and second
                            reinsurance years that a beginning
                            farmer or rancher or veteran farmer or
                            rancher participates as a beginning
                            farmer or rancher or veteran farmer or
                            rancher in the applicable policy or
                            plan of insurance, 5 percentage points.
                              (ii) For the third reinsurance year
                            that a beginning farmer or rancher or
                            veteran farmer or rancher participates
                            as a beginning farmer or rancher or
                            veteran farmer or rancher in the
                            applicable policy or plan of insurance,
                            3 percentage points.
                              (iii) For the fourth reinsurance year
                            that a beginning farmer or rancher or
                            veteran farmer or rancher participates
                            as a beginning farmer or rancher or
                            veteran farmer or rancher in the
                            applicable policy or plan of insurance,
                            1 percentage point.
      (f) Eligibility.--
              (1) In general.--To participate in catastrophic risk
            protection coverage under this section, a producer
            shall submit an application at the local office of the
            Department or to an approved insurance provider.
              (2) Sales closing date.--
                      (A) In general.--For coverage under this
                    subtitle, each producer shall purchase crop
                    insurance on or before the sales closing date
                    for the crop by providing the required
                    information and executing the required
                    documents. Subject to the goal of ensuring
                    actuarial soundness for the crop insurance
                    program, the sales closing date shall be
                    established by the Corporation to maximize
                    convenience to producers in obtaining benefits
                    under price and production adjustment programs
                    of the Department.
                      (B) Established dates.--Except as provided in
                    subparagraph (C), the Corporation shall
                    establish, for an insurance policy for each
                    insurable crop that is planted in the spring, a
                    sales closing date that is 30 days earlier than
                    the corresponding sales closing date that was
                    established for the 1994 crop year.
                      (C) Exception.--If compliance with
                    subparagraph (B) results in a sales closing
                    date for an agricultural commodity that is
                    earlier than January 31, the sales closing date
                    for that commodity shall be January 31
                    beginning with the 2000 crop year.
              (3) Records and reporting.--To obtain catastrophic
            risk protection under subsection (b) or additional
            coverage under subsection (c), a producer shall--
                      (A) provide annually records acceptable to
                    the Secretary regarding crop acreage, acreage
                    yields, and production for each agricultural
                    commodity insured under this subtitle or accept
                    a yield determined by the Corporation; and
                      (B) report acreage planted and prevented from
                    planting by the designated acreage reporting
                    date for the crop and location as established
                    by the Corporation.
      (g) Yield Determinations.--
              (1) In general.--Subject to paragraph (2), the
            Corporation shall establish crop insurance underwriting
            rules that ensure that yield coverage, as specified in
            this subsection, is provided to eligible producers
            obtaining catastrophic risk protection under subsection
            (b) or additional coverage under subsection (c).
              (2) Yield coverage plans.--
                      (A) Actual production history.--Subject to
                    subparagraph (B) and paragraph (4)(C), the
                    yield for a crop shall be based on the actual
                    production history for the crop, if the crop
                    was produced on the farm without penalty during
                    each of the 4 crop years immediately preceding
                    the crop year for which actual production
                    history is being established, building up to a
                    production data base for each of the 10
                    consecutive crop years preceding the crop year
                    for which actual production history is being
                    established.
                      (B) Assigned yield.--If the producer does not
                    provide satisfactory evidence of the yield of a
                    commodity under subparagraph (A), the producer
                    shall be assigned--
                              (i) a yield that is not less than 65
                            percent of the transitional yield of
                            the producer (adjusted to reflect
                            actual production reflected in the
                            records acceptable to the Corporation
                            for continuous years), as specified in
                            regulations issued by the Corporation
                            based on production history
                            requirements;
                              (ii) a yield determined by the
                            Corporation, in the case of--
                                      (I) a producer that has not
                                    had a share of the production
                                    of the insured crop for more
                                    than two crop years, as
                                    determined by the Secretary;
                                      (II) a producer that produces
                                    an agricultural commodity on
                                    land that has not been farmed
                                    by the producer; or
                                      (III) a producer that rotates
                                    a crop produced on a farm to a
                                    crop that has not been produced
                                    on the farm; or
                              (iii) if the producer is a beginning
                            farmer or rancher or veteran farmer or
                            rancher who was previously involved in
                            a farming or ranching operation,
                            including involvement in the
                            decisionmaking or physical involvement
                            in the production of the crop or
                            livestock on the farm, for any acreage
                            obtained by the beginning farmer or
                            rancher or veteran farmer or rancher, a
                            yield that is the higher of--
                                      (I) the actual production
                                    history of the previous
                                    producer of the crop or
                                    livestock on the acreage
                                    determined under subparagraph
                                    (A); or
                                      (II) a yield of the producer,
                                    as determined in clause (i).
                      (C) Area yield.--The Corporation may offer a
                    crop insurance plan based on an area yield that
                    allows an insured producer to qualify for an
                    indemnity if a loss has occurred in an area (as
                    specified by the Corporation) in which the farm
                    of the producer is located. Under an area yield
                    plan, an insured producer shall be allowed to
                    select the level of area production at which an
                    indemnity will be paid consistent with such
                    terms and conditions as are established by the
                    Corporation.
                      (D) Commodity-by-commodity basis.--A producer
                    may choose between individual yield or area
                    yield coverage or combined coverage, if
                    available, on a commodity-by-commodity basis.
                      (E) Sources of yield data.--To determine
                    yields under this paragraph, the Corporation--
                              (i) shall use county data collected
                            by the Risk Management Agency, the
                            National Agricultural Statistics
                            Service, or both; or
                              (ii) if sufficient county data is not
                            available, may use other data
                            considered appropriate by the
                            Secretary.
              (3) Transitional yields for producers of feed or
            forage.--
                      (A) In general.--If a producer does not
                    provide satisfactory evidence of a yield under
                    paragraph (2)(A), the producer shall be
                    assigned a yield that is at least 80 percent of
                    the transitional yield established by the
                    Corporation (adjusted to reflect the actual
                    production history of the producer) if the
                    Secretary determines that--
                              (i) the producer grows feed or forage
                            primarily for on-farm use in a
                            livestock, dairy, or poultry operation;
                            and
                              (ii) over 50 percent of the net farm
                            income of the producer is derived from
                            the operation.
                      (B) Yield calculation.--The Corporation
                    shall--
                              (i) for the first year of
                            participation of a producer, provide
                            the assigned yield under this paragraph
                            to the producer of feed or forage; and
                              (ii) for the second year of
                            participation of the producer, apply
                            the actual production history or
                            assigned yield requirement, as provided
                            in this subsection.
                      (C) Termination of authority.--The authority
                    provided by this paragraph shall terminate on
                    the date that is 3 years after the effective
                    date of this paragraph.
              (4) Adjustment in actual production history to
            establish insurable yields.--
                      (A) Application.--This paragraph shall apply
                    whenever the Corporation uses the actual
                    production records of the producer to establish
                    the producer's actual production history for an
                    agricultural commodity for any of the 2001 and
                    subsequent crop years.
                      (B) Election to use percentage of
                    transitional yield.--If, for one or more of the
                    crop years used to establish the producer's
                    actual production history of an agricultural
                    commodity, the producer's recorded or appraised
                    yield of the commodity was less than 60 percent
                    of the applicable transitional yield, as
                    determined by the Corporation, the Corporation
                    shall, at the election of the producer--
                              (i) exclude any of such recorded or
                            appraised yield; and--
                              (ii)(I) replace each excluded yield
                            with a yield equal to 60 percent of the
                            applicable transitional yield; or
                              (II) in the case of beginning farmers
                            or ranchers and veteran farmers or
                            ranchers, replace each excluded yield
                            with a yield equal to 80 percent of the
                            applicable transitional yield.
                      (C) Election to exclude certain history.--
                              (i) In general.--Notwithstanding
                            paragraph (2), with respect to 1 or
                            more of the crop years used to
                            establish the actual production history
                            of an agricultural commodity of the
                            producer, the producer may elect to
                            exclude any recorded or appraised yield
                            for any crop year in which the per
                            planted acre yield of the agricultural
                            commodity in the county of the producer
                            was at least 50 percent below the
                            simple average of the per planted acre
                            yield of the agricultural commodity in
                            the county during the previous 10
                            consecutive crop years.
                              (ii) Contiguous counties.--In any
                            crop year that a producer in a county
                            is eligible to make an election to
                            exclude a yield under clause (i), a
                            producer in a contiguous county is
                            eligible to make such an election.
                              (iii) Irrigation practice.--For
                            purposes of determining whether the per
                            planted acre yield of the agricultural
                            commodity in the county of the producer
                            was at least 50 percent below the
                            simple average of the per planted acre
                            yield of the agricultural commodity in
                            the county during the previous 10
                            consecutive crop years, the Corporation
                            shall make a separate determination for
                            irrigated and nonirrigated acreage.
                      (D) Premium adjustment.--In the case of a
                    producer that makes an election under
                    subparagraph (B) or (C), the Corporation shall
                    adjust the premium to reflect the risk
                    associated with the adjustment made in the
                    actual production history of the producer.
              (5) Adjustment to reflect increased yields from
            successful pest control efforts.--
                      (A) Situations justifying adjustment.--The
                    Corporation shall develop a methodology for
                    adjusting the actual production history of a
                    producer when each of the following apply:
                              (i) The producer's farm is located in
                            an area where systematic, area-wide
                            efforts have been undertaken using
                            certain operations or measures, or the
                            producer's farm is a location at which
                            certain operations or measures have
                            been undertaken, to detect, eradicate,
                            suppress, or control, or at least to
                            prevent or retard the spread of, a
                            plant disease or plant pest, including
                            a plant pest (as defined in section 102
                            of the Department of Agriculture
                            Organic Act of 1944 (7 U.S.C. 147a)).
                              (ii) The presence of the plant
                            disease or plant pest has been found to
                            adversely affect the yield of the
                            agricultural commodity for which the
                            producer is applying for insurance.
                              (iii) The efforts described in clause
                            (i) have been effective.
                      (B) Adjustment amount.--The amount by which
                    the Corporation adjusts the actual production
                    history of a producer of an agricultural
                    commodity shall reflect the degree to which the
                    success of the systematic, area-wide efforts
                    described in subparagraph (A), on average,
                    increases the yield of the commodity on the
                    producer's farm, as determined by the
                    Corporation.
              (6) Continued authority.--
                      (A) In general.--The Corporation shall
                    establish--
                              (i) underwriting rules that limit the
                            decrease in the actual production
                            history of a producer, at the election
                            of the producer, to not more than 10
                            percent of the actual production
                            history of the previous crop year
                            provided that the production decline
                            was the result of drought, flood,
                            natural disaster, or other insurable
                            loss (as determined by the
                            Corporation); and
                              (ii) actuarially sound premiums to
                            cover additional risk.
                      (B) Other authority.--The authority provided
                    under subparagraph (A) is in addition to any
                    other authority that adjusts the actual
                    production history of the producer under this
                    Act.
                      (C) Effect.--Nothing in this paragraph shall
                    be construed to require a change in the
                    administration of any provision of this Act as
                    the Act was administered for the 2018
                    reinsurance year.
      (h) Submission of Policies and Materials to Board.--
              (1) Authority to submit.--
                      (A) In general.--In addition to any standard
                    forms or policies that the Board may require be
                    made available to producers under subsection
                    (c), a person (including an approved insurance
                    provider, a college or university, a
                    cooperative or trade association, or any other
                    person) may prepare for submission or propose
                    to the Board--
                              (i) other crop insurance policies and
                            provisions of policies; and
                              (ii) rates of premiums for multiple
                            peril crop insurance pertaining to
                            wheat, soybeans, field corn, and any
                            other crops determined by the
                            Secretary.
                      (B) Review and submission by corporation.--
                              (i) In general.--The Corporation
                            shall review any policy developed under
                            section 522(c) or any pilot program
                            developed under section 523 and submit
                            the policy or program to the Board
                            under this subsection if the
                            Corporation, at the sole discretion of
                            the Corporation, finds that the policy
                            or program--
                                      (I) subject to clause (ii),
                                    will likely result in a viable
                                    and marketable policy
                                    consistent with this
                                    subsection;
                                      (II) would provide crop
                                    insurance coverage in a
                                    significantly improved form;
                                    and
                                      (III) adequately protects the
                                    interests of producers.
                              (ii) Waiver for hemp.--The
                            Corporation may waive the viability and
                            marketability requirement under clause
                            (i)(I) in the case of a policy or pilot
                            program relating to the production of
                            hemp.
              (2) Submission of policies.--A policy or other
            material submitted to the Board under this subsection
            may be prepared without regard to the limitations
            contained in this subtitle, including the requirements
            concerning the levels of coverage and rates and the
            requirement that a price level for each commodity
            insured must equal the expected market price for the
            commodity as established by the Board.
              (3) Review and approval by the board.--
                      (A) In general.--A policy, plan of insurance,
                    or other material submitted to the Board under
                    this subsection shall be reviewed by the Board
                    and shall be approved by the Board for
                    reinsurance and for sale by approved insurance
                    providers to producers at actuarially
                    appropriate rates and under appropriate terms
                    and conditions if the Board determines that--
                              (i) the interests of producers are
                            adequately protected;
                              (ii) the proposed policy or plan of
                            insurance will--
                                      (I) provide a new kind of
                                    coverage that is likely to be
                                    viable and marketable;
                                      (II) provide crop insurance
                                    coverage in a manner that
                                    addresses a clear and
                                    identifiable flaw or problem in
                                    an existing policy; or
                                      (III) provide a new kind of
                                    coverage for a commodity that
                                    previously had no available
                                    crop insurance, or has
                                    demonstrated a low level of
                                    participation or coverage level
                                    under existing coverage; and
                              (iii) the proposed policy or plan of
                            insurance will not have a significant
                            adverse impact on the crop insurance
                            delivery system.
                      (B) Consideration.--In approving policies or
                    plans of insurance, the Board shall in a timely
                    manner--
                              (i) first, consider policies or plans
                            of insurance that address underserved
                            commodities, including commodities for
                            which there is no insurance;
                              (ii) second, consider existing
                            policies or plans of insurance for
                            which there is inadequate coverage or
                            there exists low levels of
                            participation; and
                              (iii) last, consider all policies or
                            plans of insurance submitted to the
                            Board that do not meet the criteria
                            described in clause (i) or (ii).
                      (C) Specified review and approval
                    priorities.--In reviewing policies and other
                    materials submitted to the Board under this
                    subsection for approval, the Board--
                              (i) shall make the development and
                            approval of a revenue policy for peanut
                            producers a priority so that a revenue
                            policy is available to peanut producers
                            in time for the 2015 crop year;
                              (ii) shall make the development and
                            approval of a margin coverage policy
                            for rice producers a priority so that a
                            margin coverage policy is available to
                            rice producers in time for the 2015
                            crop year;
                              (iii) may approve a submission that
                            is made pursuant to this subsection
                            that would, beginning with the 2015
                            crop year, allow producers that
                            purchase policies in accordance with
                            subsection (e)(5)(A) to separate
                            enterprise units by risk rating for
                            acreage of crops in counties; and
                              (iv) in the case of reviewing
                            policies and other materials relating
                            to the production of hemp, may waive
                            the viability and marketability
                            requirement under subparagraph
                            (A)(ii)(I).
              (4) Guidelines for submission and review.--The
            Corporation shall issue regulations to establish
            guidelines for the submission, and Board review, of
            policies or other material submitted to the Board under
            this subsection. At a minimum, the guidelines shall
            ensure the following:
                      (A) Confidentiality.--
                              (i) In general.--A proposal submitted
                            to the Board under this subsection
                            (including any information generated
                            from the proposal) shall be considered
                            to be confidential commercial or
                            financial information for the purposes
                            of section 552(b)(4) of title 5, United
                            States Code.
                              (ii) Standard of confidentiality.--If
                            information concerning a proposal could
                            be withheld by the Secretary under the
                            standard for privileged or confidential
                            information pertaining to trade secrets
                            and commercial or financial information
                            under section 552(b)(4) of title 5,
                            United States Code, the information
                            shall not be released to the public.
                              [(iii) Application.--This
                            subparagraph shall apply with respect
                            to a proposal only during the period
                            preceding any approval of the proposal
                            by the Board.]
                              (iii) Application.--
                                      (I) In general.--Except as
                                    provided in subclause (II),
                                    this subparagraph shall apply
                                    with respect to a proposal only
                                    during the period preceding any
                                    approval of the proposal by the
                                    Board.
                                      (II) Exception.--An approved
                                    insurance provider that submits
                                    a letter of support for a
                                    concept proposal, a policy, or
                                    plan of insurance shall--
                                              (aa) not be
                                            considered the public
                                            for purposes of clause
                                            (ii);
                                              (bb) have access to
                                            data and other product
                                            development information
                                            submitted to the Board
                                            during its review under
                                            this subsection; and
                                              (cc) be subject to
                                            the confidentiality
                                            requirements as
                                            applicable to the Board
                                            pursuant to clauses (i)
                                            and (ii).
                      (B) Personal presentation.--The Board shall
                    provide an applicant with the opportunity to
                    present the proposal to the Board in person if
                    the applicant so desires.
                      (C) Notification of intent to disapprove.--
                              (i) Time period.--The Board shall
                            provide an applicant with notification
                            of intent to disapprove a proposal not
                            later than 30 days prior to making the
                            disapproval.
                              (ii) Modification of application.--
                                      (I) Authority.--An applicant
                                    that receives the notification
                                    may modify the application, and
                                    such application, as modified,
                                    shall be considered by the
                                    Board in the manner provided in
                                    subparagraph (D) within the 30-
                                    day period beginning on the
                                    date the modified application
                                    is submitted.
                                      (II) Time period.--Clause (i)
                                    shall not apply to the Board's
                                    consideration of the modified
                                    application.
                              (iii) Explanation.--Any notification
                            of intent to disapprove a policy or
                            other material submitted under this
                            subsection shall be accompanied by a
                            complete explanation as to the reasons
                            for the Board's intention to deny
                            approval.
                      (D) Determination to approve or disapprove
                    policies or materials.--
                              (i) Time period.--Not later than 120
                            days after a policy or other material
                            is submitted under this subsection, the
                            Board shall make a determination to
                            approve or disapprove the policy or
                            material.
                              (ii) Explanation.--Any determination
                            by the Board to disapprove any policy
                            or other material shall be accompanied
                            by a complete explanation of the
                            reasons for the Board's decision to
                            deny approval.
                              (iii) Failure to meet deadline.--
                            Notwithstanding any other provision of
                            this subtitle, if the Board fails to
                            make a determination within the
                            prescribed time period, the submitted
                            policy or other material shall be
                            deemed approved by the Board for the
                            initial reinsurance year designated for
                            the policy or material, unless the
                            Board and the applicant agree to an
                            extension.
                              (iv) Marketability deadline.--Any new
                            policy, plan of insurance, or other
                            material approved by the Board under
                            this subsection during a reinsurance
                            year and after the Standard Reinsurance
                            Agreement closing date of July 1, shall
                            not be implemented for such reinsurance
                            year unless at least 90 days prior to
                            the sales closing date for such policy,
                            plan of insurance, or other material,
                            the Board makes available to the
                            approved insurance providers all
                            necessary, as determined by the Board,
                            handbooks, training materials, and
                            other resources associated with such
                            policy, plan of insurance, or other
                            material.
                      (E) Consultation.--
                              (i) Requirement.--As part of the
                            feasibility and research associated
                            with the development of a policy or
                            other material for fruits and
                            vegetables, tree nuts, dried fruits,
                            and horticulture and nursery crops
                            (including floriculture), the submitter
                            prior to making a submission under this
                            subsection shall consult with groups
                            representing producers of those
                            agricultural commodities in all major
                            producing areas for the commodities to
                            be served or potentially impacted,
                            either directly or indirectly.
                              (ii) Submission to the board.--Any
                            submission made to the Board under this
                            subsection shall contain a summary and
                            analysis of the feasibility and
                            research findings from the impacted
                            groups described in clause (i),
                            including a summary assessment of the
                            support for or against development of
                            the policy and an assessment on the
                            impact of the proposed policy to the
                            general marketing and production of the
                            crop from both a regional and national
                            perspective.
                              (iii) Evaluation by the board.--In
                            evaluating whether the interests of
                            producers are adequately protected
                            pursuant to paragraph (3) with respect
                            to a submission made under this
                            subsection, the Board shall review the
                            information provided pursuant to clause
                            (ii) to determine if the submission
                            will create adverse market distortions
                            with respect to the production of
                            commodities that are the subject of the
                            submission.
                      (F) Marketability determination.--
                              (i) Submission to the board.--Prior
                            to the approval of a product, any
                            approved insurance provider that
                            submitted a letter of support for the
                            product shall provide information and
                            analysis to the Board on the
                            marketability of such product.
                              (ii) Deemed marketable.--In reviewing
                            a policy, plan of insurance, or other
                            material submitted to the Board under
                            this subsection such product shall be
                            deemed marketable in accordance with
                            paragraph (3)(A)(ii)(I) if at least one
                            approved insurance provider, in its
                            submission pursuant to clause (i),
                            expresses support for such policy,
                            plan, or material.
                              (iii) Evaluation by the board.--In
                            evaluating whether a product is
                            marketable in accordance with paragraph
                            (3)(A)(ii)(I), the Board shall take
                            into consideration any information and
                            analysis submitted pursuant to clause
                            (ii).
                              (iv) AIP participation.--The Board
                            shall not require the submission of a
                            letter of support from an approved
                            insurance provider in order to review
                            and approve any policy, plan of
                            insurance, or other material submitted
                            pursuant to this subsection.
              (5) Premium schedule.--
                      (A) Payment by corporation.--In the case of a
                    policy or plan of insurance developed and
                    approved under this subsection or section 522,
                    or conducted under section 523 (other than a
                    policy or plan of insurance applicable to
                    livestock), the Corporation shall pay a portion
                    of the premium of the policy or plan of
                    insurance that is equal to--
                              (i) the percentage, specified in
                            subsection (e) for a similar level of
                            coverage, of the total amount of the
                            premium used to define loss ratio; and
                              (ii) an amount for administrative and
                            operating expenses determined in
                            accordance with subsection (k)(4).
                      (B) Transitional schedule.--Effective only
                    during the 2001 reinsurance year, in the case
                    of a policy or plan of insurance developed and
                    approved under this subsection or section 522,
                    or conducted under section 523 (other than a
                    policy or plan of insurance applicable to
                    livestock), and first approved by the Board
                    after the date of the enactment of this
                    subparagraph, the payment by the Corporation of
                    a portion of the premium of the policy may not
                    exceed the dollar amount that would otherwise
                    be authorized under subsection (e) (consistent
                    with subsection (c)(5), as in effect on the day
                    before the date of the enactment of this
                    subparagraph).
              (6) Additional prevented planting policy coverage.--
                      (A) In general.--Beginning with the 1995 crop
                    year, the Corporation shall offer to producers
                    additional prevented planting coverage that
                    insures producers against losses in accordance
                    with this paragraph.
                      (B) Approved insurance providers.--Additional
                    prevented planting coverage shall be offered by
                    the Corporation through approved insurance
                    providers.
                      (C) Timing of loss.--A crop loss shall be
                    covered by the additional prevented planting
                    coverage if--
                              (i) crop insurance policies were
                            obtained for--
                                      (I) the crop year the loss
                                    was experienced; and
                                      (II) the crop year
                                    immediately preceding the year
                                    of the prevented planting loss;
                                    and
                              (ii) the cause of the loss occurred--
                                      (I) after the sales closing
                                    date for the crop in the crop
                                    year immediately preceding the
                                    loss; and
                                      (II) before the sales closing
                                    date for the crop in the year
                                    in which the loss is
                                    experienced.
      (i) Adoption of Rates and Coverages.--
              (1) In general.--The Corporation shall adopt, as soon
            as practicable, rates and coverages that will improve
            the actuarial soundness of the insurance operations of
            the Corporation for those crops that are determined to
            be insured at rates that are not actuarially sound,
            except that no rate may be increased by an amount of
            more than 20 percent over the comparable rate of the
            preceding crop year.
              (2) Review of rating methodologies.--To maximize
            participation in the Federal crop insurance program and
            to ensure equity for producers, the Corporation shall
            periodically review the methodologies employed for
            rating plans of insurance under this subtitle
            consistent with section 507(c)(2).
              (3) Analysis of rating and loss history.--The
            Corporation shall analyze the rating and loss history
            of approved policies and plans of insurance for
            agricultural commodities by area.
              (4) Premium adjustment.--If the Corporation makes a
            determination that premium rates are excessive for an
            agricultural commodity in an area relative to the
            requirements of subsection (d)(2) for that area, then,
            for the 2002 crop year (and as necessary thereafter),
            the Corporation shall make appropriate adjustments in
            the premium rates for that area for that agricultural
            commodity.
      (j) Claims for Losses.--
              (1) In general.--Under rules prescribed by the
            Corporation, the Corporation may provide for adjustment
            and payment of claims for losses. The rules prescribed
            by the Corporation shall establish standards to ensure
            that all claims for losses are adjusted, to the extent
            practicable, in a uniform and timely manner.
              (2) Denial of claims.--
                      (A) In general.--Subject to subparagraph (B),
                    if a claim for indemnity is denied by the
                    Corporation or an approved provider on behalf
                    of the Corporation, an action on the claim may
                    be brought against the Corporation or Secretary
                    only in the United States district court for
                    the district in which the insured farm is
                    located.
                      (B) Statute of limitations.--A suit on the
                    claim may be brought not later than 1 year
                    after the date on which final notice of denial
                    of the claim is provided to the claimant.
              (3) Indemnification.--The Corporation shall provide
            approved insurance providers with indemnification,
            including costs and reasonable attorney fees incurred
            by the approved insurance provider, due to errors or
            omissions on the part of the Corporation.
              (4) Marketing windows.--The Corporation shall
            consider marketing windows in determining whether it is
            feasible to require planting during a crop year.
              (5) Settlement of claims on farm-stored production.--
            A producer with farm-stored production may, at the
            option of the producer, delay settlement of a crop
            insurance claim relating to the farm-stored production
            for up to 4 months after the last date on which claims
            may be submitted under the policy of insurance.
      (k) Reinsurance.--
              (1) In general.--Notwithstanding any other provision
            of this subtitle, the Corporation shall, to the maximum
            extent practicable, provide reinsurance to insurers
            approved by the Corporation that insure producers of
            any agricultural commodity under 1 or more plans
            acceptable to the Corporation.
              (2) Terms and conditions.--The reinsurance shall be
            provided on such terms and conditions as the Board may
            determine to be consistent with subsections (b) and (c)
            and sound reinsurance principles.
              (3) Share of risk.--The reinsurance agreements of the
            Corporation with the reinsured companies shall require
            the reinsured companies to bear a sufficient share of
            any potential loss under the agreement so as to ensure
            that the reinsured company will sell and service
            policies of insurance in a sound and prudent manner,
            taking into consideration the financial condition of
            the reinsured companies and the availability of private
            reinsurance.
              (4) Rate.--
                      (A) In general.--Except as otherwise provided
                    in this paragraph, the rate established by the
                    Board to reimburse approved insurance providers
                    and agents for the administrative and operating
                    costs of the providers and agents shall [not
                    exceed]--
                              (i) not exceed for the 1998
                            reinsurance year, 27 percent of the
                            premium used to define loss ratio;
                            [and]
                              (ii) not exceed for each of the 1999
                            [and subsequent] through 2026
                            reinsurance years, 24.5 percent of the
                            premium used to define loss ratio[.];
                            and
                              (iii) for each of the 2027 and
                            subsequent reinsurance years, be
                            determined in accordance with
                            subparagraph (F).
                      (B) Proportional reductions.--A policy of
                    additional coverage that received a rate of
                    reimbursement for administrative and operating
                    costs for the 1998 reinsurance year that is
                    lower than the rate specified in subparagraph
                    (A)(i) shall receive a reduction in the rate of
                    reimbursement that is proportional to the
                    reduction in the rate of reimbursement between
                    clauses (i) and (ii) of subparagraph (A).
                      (C) Other reductions.--Beginning with the
                    2002 reinsurance year, in the case of a policy
                    or plan of insurance approved by the Board that
                    was not reinsured during the 1998 reinsurance
                    year but, had it been reinsured, would have
                    received a reduced rate of reimbursement during
                    the 1998 reinsurance year, the rate of
                    reimbursement for administrative and operating
                    costs established for the policy or plan of
                    insurance shall take into account the factors
                    used to determine the rate of reimbursement for
                    administrative and operating costs during the
                    1998 reinsurance year, including the expected
                    difference in premium and actual administrative
                    and operating costs of the policy or plan of
                    insurance relative to an individual yield
                    policy or plan of insurance and other
                    appropriate factors, as determined by the
                    Corporation.
                      (D) Time for reimbursement.--Effective
                    beginning with the 2012 reinsurance year, the
                    Corporation shall reimburse approved insurance
                    providers and agents for the allowable
                    administrative and operating costs of the
                    providers and agents as soon as practicable
                    after October 1 (but not later than October 31)
                    after the reinsurance year for which
                    reimbursements are earned.
                      (E) Reimbursement rate reduction.--In the
                    case of a policy of additional coverage that
                    received a rate of reimbursement for
                    administrative and operating costs for the 2008
                    reinsurance year, for each of the 2009 and
                    subsequent reinsurance years, the reimbursement
                    rate for administrative and operating costs
                    shall be 2.3 percentage points below the rates
                    in effect as of the date of enactment of the
                    Food, Conservation, and Energy Act of 2008 for
                    all crop insurance policies used to define loss
                    ratio, except that only \1/2\ of the reduction
                    shall apply in a reinsurance year to the total
                    premium written in a State in which the State
                    loss ratio is greater than 1.2.
                      [(F) Reimbursement rate for area policies and
                    plans of insurance.--Notwithstanding
                    subparagraphs (A) through (E), for each of the
                    2009 and subsequent reinsurance years, the
                    reimbursement rate for area policies and plans
                    of insurance widely available as of the date of
                    enactment of this subparagraph or authorized
                    under subsection (c)(4)(C) or section 508B
                    shall be 12 percent of the premium used to
                    define loss ratio for that reinsurance year.]
                      (F) Reimbursement rates for reinsurance year
                    2027 and subsequent reinsurance years.--
                    Notwithstanding subparagraphs (A), (B), (C),
                    and (E), for each of the 2027 and subsequent
                    reinsurance years, the rate established by the
                    Board to reimburse approved insurance providers
                    and agents for the administrative and operating
                    costs of the providers and agents with respect
                    to each policy made available under this Act
                    shall be equal to the rate applicable to the
                    policy in effect for the 2026 reinsurance year.
              (5) Cost and regulatory reduction.--Consistent with
            section 118 of the Federal Crop Insurance Reform Act of
            1994, and consistent with maintenance of program
            integrity, prevention of fraud and abuse, the need for
            program expansion, and improvement of quality of
            service to customers, the Board shall alter program
            procedures and administrative requirements in order to
            reduce the administrative and operating costs of
            approved insurance providers and agents in an amount
            that corresponds to any reduction in the reimbursement
            rate required under paragraph (4) during the 5-year
            period beginning on the date of enactment of this
            paragraph.
              (6) Agency discretion.--The determination of whether
            the Corporation is achieving, or has achieved,
            corresponding administrative cost savings shall not be
            subject to administrative review, and is wholly
            committed to agency discretion within the meaning of
            section 701(a)(2) of title 5, United States Code.
              (7) Plan.--The Corporation shall submit to Congress a
            plan outlining the measures that will be used to
            achieve the reduction required under paragraph (5). If
            the Corporation can identify additional cost reduction
            measures, the Corporation shall describe the measures
            in the plan.
              (8) Renegotiation of standard reinsurance
            agreement.--
                      (A) In general.--Except as provided in
                    subparagraph (B), notwithstanding section 536
                    of the Agricultural Research, Extension, and
                    Education Reform Act of 1998 (7 U.S.C. 1506
                    note; Public Law 105-185) and section 148 of
                    the Agricultural Risk Protection Act of 2000 (7
                    U.S.C. 1506 note; Public Law 106-224), the
                    Corporation may renegotiate the financial terms
                    and conditions of each Standard Reinsurance
                    Agreement--
                              (i) to be effective for the 2011
                            reinsurance year beginning July 1,
                            2010; and
                              (ii) once during each period of 5
                            reinsurance years thereafter.
                      (B) Exceptions.--
                              (i) Adverse circumstances.--Subject
                            to clause (ii), subparagraph (A) shall
                            not apply in any case in which the
                            approved insurance providers, as a
                            whole, experience unexpected adverse
                            circumstances, as determined by the
                            Secretary.
                              (ii) Effect of federal law changes.--
                            If Federal law is enacted after the
                            date of enactment of this paragraph
                            that requires revisions in the
                            financial terms of the Standard
                            Reinsurance Agreement, and changes in
                            the Agreement are made on a mandatory
                            basis by the Corporation, the changes
                            shall not be considered to be a
                            renegotiation of the Agreement for
                            purposes of subparagraph (A).
                      (C) Notification requirement.--If the
                    Corporation renegotiates a Standard Reinsurance
                    Agreement under subparagraph (A)(ii), the
                    Corporation shall notify the Committee on
                    Agriculture of the House of Representatives and
                    the Committee on Agriculture, Nutrition, and
                    Forestry of the Senate of the renegotiation.
                      (D) Consultation.--The approved insurance
                    providers may confer with each other and
                    collectively with the Corporation during any
                    renegotiation under subparagraph (A).
                      (E) 2011 reinsurance year.--
                              (i) In general.--As part of the
                            Standard Reinsurance Agreement
                            renegotiation authorized under
                            subparagraph (A)(i), the Corporation
                            shall consider alternative methods to
                            determine reimbursement rates for
                            administrative and operating costs.
                              (ii) Alternative methods.--
                            Alternatives considered under clause
                            (i) shall include--
                                      (I) methods that--
                                              (aa) are graduated
                                            and base reimbursement
                                            rates in a State on
                                            changes in premiums in
                                            that State;
                                              (bb) are graduated
                                            and base reimbursement
                                            rates in a State on the
                                            loss ratio for crop
                                            insurance for that
                                            State; and
                                              (cc) are graduated
                                            and base reimbursement
                                            rates on individual
                                            policies on the level
                                            of total premium for
                                            each policy; and
                                      (II) any other method that
                                    takes into account current
                                    financial conditions of the
                                    program and ensures continued
                                    availability of the program to
                                    producers on a nationwide
                                    basis.
                      (F) Budget.--
                              (i) In general.--The Board shall
                            ensure that any Standard Reinsurance
                            Agreement negotiated under subparagraph
                            (A)(ii) shall--
                                      (I) to the maximum extent
                                    practicable, be estimated as
                                    budget neutral with respect to
                                    the total amount of payments
                                    described in paragraph (9) as
                                    compared to the total amount of
                                    such payments estimated to be
                                    made under the immediately
                                    preceding Standard Reinsurance
                                    Agreement if that Agreement
                                    were extended over the same
                                    period of time;
                                      (II) comply with the
                                    applicable provisions of this
                                    Act establishing the rates of
                                    reimbursement for
                                    administrative and operating
                                    costs for approved insurance
                                    providers and agents, except
                                    that, to the maximum extent
                                    practicable, the estimated
                                    total amount of reimbursement
                                    for those costs shall not be
                                    less than the total amount of
                                    the payments to be made under
                                    the immediately preceding
                                    Standard Reinsurance Agreement
                                    if that Agreement were extended
                                    over the same period of time,
                                    as estimated on the date of
                                    enactment of the Agricultural
                                    Act of 2014; and
                                      (III) in no event
                                    significantly depart from
                                    budget neutrality unless
                                    otherwise required by this Act.
                              (ii) Use of savings.--To the extent
                            that any budget savings are realized in
                            the renegotiation of a Standard
                            Reinsurance Agreement under
                            subparagraph (A)(ii), and the savings
                            are determined not to be a significant
                            departure from budget neutrality under
                            clause (i), the savings shall be used
                            to increase reimbursements or payments
                            described under paragraphs (4) and (9).
              (9) Due date for payment of underwriting gains.--
            Effective beginning with the 2011 reinsurance year, the
            Corporation shall make payments for underwriting gains
            under this subtitle on--
                      (A) for the 2011 reinsurance year, October 1,
                    2012; and
                      (B) for each reinsurance year thereafter,
                    October 1 of the following calendar year.
              (10) Additional expenses.--
                      (A) In general.--Beginning with the 2026
                    reinsurance year, and for each reinsurance year
                    thereafter, in addition to the terms and
                    conditions of the Standard Reinsurance
                    Agreement, to cover additional expenses for
                    loss adjustment procedures, the Corporation
                    shall pay an additional administrative and
                    operating expense subsidy to approved insurance
                    providers for eligible contracts.
                      (B) Payment amount.--In the case of an
                    eligible contract, the payment to an approved
                    insurance provider required under subparagraph
                    (A) shall be the amount equal to 6 percent of
                    the net book premium.
                      (C) Definitions.--In this paragraph:
                              (i) Eligible contract.--The term
                            ``eligible contract''--
                                      (I) means a crop insurance
                                    contract entered into by an
                                    approved insurance provider in
                                    an eligible State; and
                                      (II) does not include a
                                    contract for--
                                              (aa) catastrophic
                                            risk protection under
                                            subsection (b);
                                              (bb) an area-based
                                            plan of insurance or
                                            similar plan of
                                            insurance, as
                                            determined by the
                                            Corporation; or
                                              (cc) a policy under
                                            which an approved
                                            insurance provider does
                                            not incur loss
                                            adjustment expenses, as
                                            determined by the
                                            Corporation.
                              (ii) Eligible state.--The term
                            ``eligible State'' means a State in
                            which, with respect to an insurance
                            year, the loss ratio for eligible
                            contracts is greater than 120 percent
                            of the total net book premium written
                            by all approved insurance providers.
              (11) Specialty crops.--
                      (A) Minimum reimbursement.--Beginning with
                    the 2026 reinsurance year, and for each
                    reinsurance year thereafter, the rate of
                    reimbursement to approved insurance providers
                    and agents for administrative and operating
                    expenses with respect to crop insurance
                    contracts covering agricultural commodities
                    described in section 101 of the Specialty Crops
                    Competitiveness Act of 2004 (7 U.S.C. 1621
                    note; Public Law 108-465) shall be equal to or
                    greater than the percentage that is the greater
                    of the following:
                              (i) 17 percent of the premium used to
                            define loss ratio.
                              (ii) The percent of the premium used
                            to define loss ratio that is otherwise
                            applicable for the reinsurance year
                            under the terms of the Standard
                            Reinsurance Agreement in effect for the
                            reinsurance year.
                      (B) Other contracts.--In carrying out
                    subparagraph (A), the Corporation shall not
                    reduce, with respect to any reinsurance year,
                    the amount or the rate of reimbursement to
                    approved insurance providers and agents under
                    the Standard Reinsurance Agreement described in
                    clause (ii) of such subparagraph for
                    administrative and operating expenses with
                    respect to contracts covering agricultural
                    commodities that are not subject to such
                    subparagraph.
                      (C) Administration.--The requirements of this
                    paragraph and the adjustments made pursuant to
                    this paragraph shall not be considered a
                    renegotiation under paragraph (8)(A).
              (12) A&O inflation adjustment.--
                      (A) In general.--Subject to subparagraph (B),
                    beginning with the 2026 reinsurance year, and
                    for each reinsurance year thereafter, the
                    Corporation shall increase the total
                    administrative and operating expense
                    reimbursements otherwise required under the
                    Standard Reinsurance Agreement in effect for
                    the reinsurance year in order to account for
                    inflation, in a manner consistent with the
                    increases provided with respect to the 2011
                    through 2015 reinsurance years under the
                    enclosure included in Risk Management Agency
                    Bulletin numbered MGR-10-007 and dated June 30,
                    2010.
                      (B) Special rule for 2026 reinsurance year.--
                    The increase under subparagraph (A) for the
                    2026 reinsurance year shall not exceed the
                    percentage change for the preceding reinsurance
                    year included in the Consumer Price Index for
                    All Urban Consumers published by the Bureau of
                    Labor Statistics of the Department of Labor.
                      (C) Administration.--An increase under
                    subparagraph (A)--
                              (i) shall apply with respect to all
                            contracts covering agricultural
                            commodities that were subject to an
                            increase during the period of the 2011
                            through 2015 reinsurance years under
                            the enclosure referred to in that
                            subparagraph; and
                              (ii) shall not be considered a
                            renegotiation under paragraph (8)(A).
      (l) Optional Coverages.--The Corporation may offer specific
    risk protection programs, including protection against
    prevented planting, wildlife depredation, tree damage and
    disease, and insect infestation, under such terms and
    conditions as the Board may determine, except that no program
    may be undertaken if insurance for the specific risk involved
    is generally available from private companies.
      (m) Quality Loss Adjustment Coverage.--
              (1) Effect of coverage.--If a policy or plan of
            insurance offered under this subtitle includes quality
            loss adjustment coverage, the coverage shall provide
            for a reduction in the quantity of production of the
            agricultural commodity considered produced during a
            crop year, or a similar adjustment, as a result of the
            agricultural commodity not meeting the quality
            standards established in the policy or plan of
            insurance.
              (2) Additional quality loss adjustment.--
                      (A) Producer option.--Notwithstanding any
                    other provision of law, in addition to the
                    quality loss adjustment coverage available
                    under paragraph (1), the Corporation shall
                    offer producers the option of purchasing
                    quality loss adjustment coverage on a basis
                    that is smaller than a unit with respect to an
                    agricultural commodity that satisfies each of
                    the following:
                              (i) The agricultural commodity is
                            sold on an identity-preserved basis.
                              (ii) All quality determinations are
                            made solely by the Federal agency
                            designated to grade or classify the
                            agricultural commodity.
                              (iii) All quality determinations are
                            made in accordance with standards
                            published by the Federal agency in the
                            Federal Register.
                              (iv) The discount schedules that
                            reflect the reduction in quality of the
                            agricultural commodity are established
                            by the Secretary.
                      (B) Basis for adjustment.--Under this
                    paragraph, the Corporation shall set the
                    quality standards below which quality losses
                    will be paid based on the variability of the
                    grade of the agricultural commodity from the
                    base quality for the agricultural commodity.
              (3) Review of criteria and procedures.--
                      [(A) Review.--The Corporation shall contract
                    with a qualified person to review the quality
                    loss adjustment procedures of the Corporation
                    so that the procedures more accurately reflect
                    local quality discounts that are applied to
                    agricultural commodities insured under this
                    subtitle.]
                      (A) Periodic review.--Beginning in calendar
                    year 2027 and once every 5 years thereafter,
                    the Corporation shall contract with a qualified
                    person to conduct a review, which shall be
                    completed within 1 year of initiation, of the
                    quality loss adjustment procedures of the
                    Corporation.
                      (B) Stakeholder engagement.--Each review
                    under subparagraph (A) shall include engagement
                    from regionally diverse industry stakeholders
                    for each agricultural commodity for which a
                    quality loss adjustment is offered.
                      [(B)] (C) Procedures.--[Effective beginning
                    not later than the 2004 reinsurance year, based
                    on the review, the Corporation] Based on each
                    review conducted under subparagraph (A), the
                    Corporation shall make adjustments in the
                    procedures, taking into consideration the
                    actuarial soundness of the adjustment and the
                    prevention of fraud, waste, and abuse.
                      (D) Report.--On the completion of each review
                    under subparagraph (A), the Corporation 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 that describes--
                              (i) the findings from that review;
                              (ii) the changes to the quality loss
                            adjustment procedures;
                              (iii) the stakeholder engagement for
                            that review conducted pursuant to
                            subparagraph (B); and
                              (iv) plans for establishing specific
                            quality loss adjustment procedures for
                            unique regions, as determined by the
                            Secretary.
              (4) Quality of agricultural commodities delivered to
            warehouse operators.--In administering this subtitle,
            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.
              (5) Special provisions for malting barley.--The
            Corporation shall promulgate special provisions under
            this subsection specific to malting barley, taking into
            consideration any changes in quality factors, as
            required by applicable market conditions.
              (6) Test weight for corn.--
                      (A) In general.--The Corporation shall
                    establish procedures to allow insured producers
                    not more than 120 days to settle claims, in
                    accordance with procedures established by the
                    Secretary, involving corn that is determined to
                    have low test weight.
                      (B) Implementation.--As soon as practicable
                    after the date of enactment of this paragraph,
                    the Corporation shall implement subparagraph
                    (A) on a regional basis based on market
                    conditions and the interests of producers.
                      (C) Termination of effectiveness.--The
                    authority provided by this paragraph terminates
                    effective on the date that is 5 years after the
                    date on which subparagraph (A) is implemented.
      (n) Limitation on Multiple Benefits for Same Loss.--
                      (1) In general.--Except as provided in
                    paragraph (2), if a producer who is eligible to
                    receive benefits under catastrophic risk
                    protection under subsection (b) is also
                    eligible to receive assistance for the same
                    loss under any other program administered by
                    the Secretary, the producer shall be required
                    to elect whether to receive benefits under this
                    subtitle or under the other program, but not
                    both. A producer who purchases additional
                    coverage under subsection (c) may also receive
                    assistance for the same loss under other
                    programs administered by the Secretary, except
                    that the amount received for the loss under the
                    additional coverage together with the amount
                    received under the other programs may not
                    exceed the amount of the actual loss of the
                    producer.
                      (2) Exception.--Paragraph (1) shall not apply
                    to emergency loans under subtitle C of the
                    Consolidated Farm and Rural Development Act (7
                    U.S.C. 1961 et seq.).
      (o) Crop Production on Native Sod.--
              (1) Definition of native sod.--In this subsection,
            the term ``native sod'' means land--
                      (A) on which the plant cover is composed
                    principally of native grasses, grasslike
                    plants, forbs, or shrubs suitable for grazing
                    and browsing; and
                      (B) that has never been tilled, or the
                    producer cannot substantiate that the ground
                    has ever been tilled, for the production of an
                    annual crop as of the date of enactment of this
                    subsection.
              (2) Reduction in benefits.--
                      (A) In general.--
                              (i) First 4 crop years.--During the
                            first 4 crop years of planting, as
                            determined by the Secretary, native sod
                            acreage that has been tilled for the
                            production of an annual crop beginning
                            on February 8, 2014, and ending on the
                            date of enactment of the Agriculture
                            Improvement Act of 2018 shall be
                            subject to a reduction in benefits
                            under this subtitle as described in
                            this paragraph.
                              (ii) Subsequent crop years.--Native
                            sod acreage that has been tilled for
                            the production of an insurable crop
                            after the date of enactment of the
                            Agriculture Improvement Act of 2018
                            shall be subject to a reduction in
                            benefits under this subtitle as
                            described in this paragraph for not
                            more than 4 cumulative years--
                                      (I) during the first 10 years
                                    after initial tillage; and
                                      (II) during each of which a
                                    crop on that acreage is insured
                                    under subsection (c).
                      (B) De minimis acreage exemption.--The
                    Secretary shall exempt areas of 5 acres or less
                    from subparagraph (A).
                      (C) Administration.--
                              (i) Reduction.--For purposes of the
                            reduction in benefits for the acreage
                            described in subparagraph (A)--
                                      (I) the crop insurance
                                    guarantee shall be determined
                                    by using a yield equal to 65
                                    percent of the transitional
                                    yield of the producer; and
                                      (II) the crop insurance
                                    premium subsidy provided for
                                    the producer under this
                                    subtitle, except for coverage
                                    authorized pursuant to
                                    subsection (b)(1), shall be 50
                                    percentage points less than the
                                    premium subsidy that would
                                    otherwise apply.
                              (ii) Yield substitution.--During the
                            period native sod acreage is covered by
                            this subsection, a producer may not
                            substitute yields for the native sod.
              (3) Application.--This subsection shall only apply to
            native sod acreage in the States of Minnesota, Iowa,
            North Dakota, South Dakota, Montana, and Nebraska.
      (p) Coverage Levels by Practice.--Beginning with the 2015
    crop year, a producer that produces an agricultural commodity
    on both dry land and irrigated land may elect a different
    coverage level for each production practice.

               *       *       *       *       *       *       *

    SEC. 508B. STACKED INCOME PROTECTION PLAN FOR PRODUCERS OF UPLAND
                        COTTON.

      (a) Availability.--Beginning not later than the 2015 crop of
    upland cotton, the Corporation shall make available to
    producers of upland cotton an additional policy (to be known as
    the ``Stacked Income Protection Plan''), which shall provide
    coverage consistent with the Group Risk Income Protection Plan
    (and the associated Harvest Revenue Option Endorsement) offered
    by the Corporation for the 2011 crop year.
      (b) Required Terms.--The Corporation may modify the Stacked
    Income Protection Plan on a program-wide basis, except that the
    Stacked Income Protection Plan shall comply with the following
    requirements:
              (1) Provide coverage for revenue loss of not less
            than 10 percent and not more than 30 percent of
            expected county revenue, specified in increments of 5
            percent. The deductible shall be the minimum percent of
            revenue loss at which indemnities are triggered under
            the plan, not to be less than 10 percent of the
            expected county revenue.
              (2) Be offered to producers of upland cotton in all
            counties with upland cotton production--
                      (A) at a county-wide level to the fullest
                    extent practicable; or
                      (B) in counties that lack sufficient data, on
                    the basis of such larger geographical area as
                    the Corporation determines to provide
                    sufficient data for purposes of providing the
                    coverage.
              (3) Be purchased in addition to any other individual
            or area coverage in effect on the producer's acreage or
            as a stand-alone policy, except that if a producer has
            an individual or area coverage for the same acreage,
            the maximum coverage available under the Stacked Income
            Protection Plan shall not exceed the deductible for the
            individual or area coverage.
              (4) Establish coverage based on--
                      (A) the expected price established under
                    existing Group Risk Income Protection or area
                    wide policy offered by the Corporation for the
                    applicable county (or area) and crop year; and
                      (B) an expected county yield that is the
                    higher of--
                              (i) the expected county yield
                            established for the existing area-wide
                            plans offered by the Corporation for
                            the applicable county (or area) and
                            crop year (or, in geographic areas
                            where area-wide plans are not offered,
                            an expected yield determined in a
                            manner consistent with those of area-
                            wide plans); or
                              (ii) the average of the applicable
                            yield data for the county (or area) for
                            the most recent 5 years, excluding the
                            highest and lowest observations, from
                            the Risk Management Agency or the
                            National Agricultural Statistics
                            Service (or both) or, if sufficient
                            county data is not available, such
                            other data considered appropriate by
                            the Secretary.
              (5) Use a multiplier factor to establish maximum
            protection per acre (referred to as a ``protection
            factor'') of not less than the higher of the level
            established on a program wide basis or 120 percent.
              (6) Pay an indemnity based on the amount that the
            expected county revenue exceeds the actual county
            revenue, as applied to the individual coverage of the
            producer. Indemnities under the Stacked Income
            Protection Plan shall not include or overlap the amount
            of the deductible selected under paragraph (1).
              (7) In all counties for which data are available,
            establish separate coverage levels for irrigated and
            nonirrigated practices.
      (c) Premium.--Notwithstanding section 508(d), the premium for
    the Stacked Income Protection Plan shall--
              (1) be sufficient to cover anticipated losses and a
            reasonable reserve; and
              (2) include an amount for operating and
            administrative expenses established in accordance with
            section 508(k)(4)(F).
      (d) Payment of Portion of Premium by Corporation.--Subject to
    section 508(e)(4), the amount of premium paid by the
    Corporation for all qualifying coverage levels of the Stacked
    Income Protection Plan shall be--
              (1) 80 percent of the amount of the premium
            established under subsection (c) for the coverage level
            selected; and
              (2) the amount determined under subsection (c)(2),
            subject to section 508(k)(4)(F), for the coverage to
            cover administrative and operating expenses.
      (e) Relation to other Coverages.--The Stacked Income
    Protection Plan is in addition to all other coverages available
    to producers of upland cotton.
      (f) Limitation.--[Effective beginning with the 2019 crop
    year] Effective for the 2019 through 2025 crop years, a farm
    shall not be eligible for the Stacked Income Protection Plan
    for upland cotton for a crop year for which the farm is
    enrolled in coverage for seed cotton under--
              (1) price loss coverage under section 1116 of the
            Agricultural Act of 2014 (7 U.S.C. 9016); or
              (2) agriculture risk coverage under section 1117 of
            that Act (7 U.S.C. 9017).

               *       *       *       *       *       *       *

    SEC. 508E. PILOT PROGRAM TO REVIEW EFFECTIVENESS OF COVERAGE PENALTY.

      (a) In General.--Effective beginning with the 2027 crop year,
    the Risk Management Agency and the Corporation shall establish
    a pilot program to evaluate the effectiveness of the reduction
    in benefits applied to corn and other crops, as determined by
    the Corporation, planted during the late planting period (as
    defined in section 457.8 of title 7, Code of Federal
    Regulations (or successor regulation)).
      (b) Location and Duration of Pilot.--The pilot program
    established under subsection (a) shall--
              (1) be conducted in not less than 10 counties located
            within or adjacent to the North Plains Groundwater
            Conservation District or the Panhandle Groundwater
            Conservation District in the State of Texas; and
              (2) operate for a period of not less than 4 crop
            years.
      (c) Evaluation.--In carrying out the pilot program
    established under subsection (a), the Risk Management Agency
    and the Corporation shall--
              (1) suspend any reduction to the insurance guarantee
            applied to an insurance policy for a crop that is
            planted during the late planting period;
              (2) gather and analyze data to determine if the
            number of days beyond the final plant date in which a
            crop was planted during the late planting period
            correlates with a decrease in crop yields; and
              (3) determine if planting a crop after the final
            plant date results in reduced usage of irrigation from
            the Ogallala Aquifer.
      (d) Report Required.--Not later than 90 days after the last
    day of crop year 2031, the Risk Management Agency and the
    Corporation shall submit to the Committee on Agriculture of the
    House of Representatives and the Committee on Agriculture,
    Forestry, and Nutrition of the Senate a report that includes--
              (1) a summary of the results of the pilot program
            established under subsection (a);
              (2) an analysis of the correlation between planting
            date and final yields; and
              (3) any changes to existing policies that the
            Corporation intends to make as a result of the
            information obtained during the pilot program.
      (e) Partnerships.--Of the amounts made available in section
    522(e)(2)(A)(ii), the Corporation may use not more than
    $200,000 to enter into a partnership or cooperative agreement
    with a nonprofit organization, State agency, or public
    university that is familiar with agricultural production in the
    region described in subsection (b)(1) to conduct the research
    and evaluation required under paragraphs (2) and (3) of
    subsection (c).

               *       *       *       *       *       *       *

    SEC. 515. PROGRAM COMPLIANCE AND INTEGRITY.

      (a) Purpose.--
              (1) In general.--The purpose of this section is to
            improve compliance with, and the integrity of, the
            Federal crop insurance program.
              (2) Role of insurance providers.--The Corporation
            shall work actively with approved insurance providers
            to address program compliance and integrity issues as
            such issues develop.
      (b) Notification, Response, and Final Determination of
    Compliance Problems.--
              (1) Notification of errors, omissions, and
            failures.--The Corporation [shall notify in writing]
            shall, through an initial finding in writing, notify
            (unless such notification is pursuant to the
            responsibilities to conduct reviews and make
            corrections) an approved insurance provider of any
            error, omission, or failure to follow Corporation
            regulations or procedures for which the approved
            insurance provider may be responsible and which may
            result in a debt owed the Corporation.
              (2)  [Time for notification] Required timing.--
            [Notice]
                      (A) Initial finding._Notice  under paragraph
                    (1) shall be given within 3 years after the end
                    of the insurance period during which the error,
                    omission, or failure is alleged to have
                    occurred, except that this time limitation
                    shall not apply with respect to an error,
                    omission, or procedural violation that is
                    willful or intentional.
                      (B) Response.--During the 90-day period
                    beginning on the date the Corporation notifies
                    an approved insurance provider through an
                    initial finding under paragraph (1), such
                    approved insurance provider may appeal such
                    initial finding in writing.
                      (C) Final finding.--Not later than 90 days
                    after the date on which an approved insurance
                    provider appeals pursuant to subparagraph (B),
                    the Corporation shall issue a final finding in
                    writing to such approved insurance provider.
                      (D) Request for final administrative
                    determination.--An approved insurance provider
                    shall have not more than 90 days after the
                    receipt of the Corporation's final finding
                    under subparagraph (C) to request, in writing,
                    a final administrative determination, if such
                    approved insurance provider has reason to
                    believe that the Corporation's final finding
                    under subparagraph (C) is not in accordance
                    with--
                              (i) the applicable laws, regulations,
                            custom, or practice of the crop
                            insurance industry; or
                              (ii) the approved policy and
                            procedure of the Corporation.
                      (E) Final determination.--The Corporation
                    shall have not more than 90 days after the
                    receipt of a request for a final administrative
                    determination under subparagraph (D) to provide
                    such final administrative determination, unless
                    substantial new information, as determined by
                    the Corporation, is provided by the approved
                    insurance provider.
                      (F) Appeal to civilian board of contract
                    appeals.--An approved insurance provider shall
                    have not more than 90 days after receipt of
                    final administrative determination provided
                    pursuant to subparagraph (E) to appeal such
                    determination to the Civilian Board of Contract
                    Appeals.
              [(3) Effect of failure to timely notify.--Except as
            provided in paragraph (2), the failure to timely
            provide the notice required under this subsection shall
            relieve the approved insurance provider from the debt
            owed the Corporation.]
              (3) Effect of failure to timely notify.--
                      (A) In general.--Except as provided in
                    subparagraph (B), failure of the Corporation to
                    comply with the requirements under paragraph
                    (2) shall relieve the approved insurance
                    provider from the debt owed to the Corporation.
                      (B) Exception.--Subparagraph (A) shall not
                    apply to any matters referred to the Office of
                    the Inspector General or the Department of
                    Justice.
      (c) Reconciling Producer Information.--
              (1) In general.--The Secretary shall develop and
            implement a coordinated plan for the Corporation and
            the Farm Service Agency to reconcile all relevant
            information received by the Corporation or the Farm
            Service Agency from a producer who obtains crop
            insurance coverage under this subtitle.
              (2) Frequency.--Beginning with the 2001 crop year,
            the Secretary shall require that the Corporation and
            the Farm Service Agency reconcile such producer-derived
            information on at least an annual basis in order to
            identify and address any discrepancies.
              (3) Corrections.--
                      (A) In general.--In addition to the
                    corrections permitted by the Corporation as of
                    the day before the date of enactment of the
                    Agricultural Act of 2014, the Corporation shall
                    establish procedures that allow an agent or an
                    approved insurance provider, subject to
                    subparagraph (B)--
                              (i) within a reasonable amount of
                            time following the applicable sales
                            closing date, to correct errors in
                            information that is provided by a
                            producer for the purpose of obtaining
                            coverage under any policy or plan of
                            insurance made available under this
                            subtitle to ensure that the eligibility
                            information is correct and consistent
                            with information reported by the
                            producer for other programs
                            administered by the Secretary;
                              (ii) within a reasonable amount of
                            time following--
                                      (I) the acreage reporting
                                    date, to reconcile errors in
                                    the information reported by the
                                    producer with correct
                                    information determined from any
                                    other program administered by
                                    the Secretary; or
                                      (II) the date of any
                                    subsequent correction of data
                                    by the Farm Service Agency made
                                    as a result of the verification
                                    of information, to make
                                    conforming corrections; and
                              (iii) at any time, to correct
                            electronic transmission errors that
                            were made by an agent or approved
                            insurance provider, or such errors made
                            by the Farm Service Agency or any other
                            agency of the Department of Agriculture
                            in transmitting the information
                            provided by the producer for purposes
                            of other programs of the Department to
                            the extent an agent or approved
                            insurance provider relied upon the
                            erroneous information for crop
                            insurance purposes.
                      (B) Limitation.--In accordance with the
                    procedures of the Corporation, correction to
                    the information described in clauses (i) and
                    (ii) of subparagraph (A) may only be made if
                    the corrections do not allow the producer--
                              (i) to avoid ineligibility
                            requirements for insurance or obtain a
                            disproportionate benefit under the crop
                            insurance program or any related
                            program administered by the Secretary;
                              (ii) to obtain, enhance, or increase
                            an insurance guarantee or indemnity if
                            a cause of loss exists or has occurred
                            before any correction has been made, or
                            avoid premium owed if no loss is likely
                            to occur; or
                              (iii) to avoid an obligation or
                            requirement under any Federal or State
                            law.
                      (C) Exception to late filing sanctions.--Any
                    corrections made within a reasonable amount of
                    time, in accordance with established
                    procedures, pursuant to this paragraph shall
                    not be subject to any late filing sanctions
                    authorized in the reinsurance agreement with
                    the Corporation.
                      (D) Late payment of debt.--In the case of a
                    producer that has inadvertently failed to pay a
                    debt due as specified by regulations of the
                    Corporation and has been determined to be
                    ineligible for crop insurance pursuant to the
                    terms of the policy as a result of that
                    failure, the Corporation may determine to allow
                    the producer to pay the debt and purchase the
                    crop insurance after the sales closing date, in
                    accordance with procedures and limitations
                    established by the Corporation.
      (d) Identification and Elimination of Fraud, Waste, and
    Abuse.--
              (1) FSA monitoring program.--The Secretary shall
            develop and implement a coordinated plan for the Farm
            Service Agency to assist the Corporation in the ongoing
            monitoring of programs carried out under this subtitle,
            including--
                      (A) at the request of the Corporation or,
                    subject to paragraph (2), on its own initiative
                    if the Farm Service Agency has reason to
                    suspect the existence of program fraud, waste,
                    or abuse, conducting fact finding relative to
                    allegations of program fraud, waste, or abuse;
                      (B) reporting to the Corporation, in writing
                    in a timely manner, the results of any fact
                    finding conducted pursuant to subparagraph (A),
                    any allegation of fraud, waste, or abuse, and
                    any identified program vulnerabilities;
                      (C) assisting the Corporation and approved
                    insurance providers in auditing a statistically
                    appropriate number of claims made under any
                    policy or plan of insurance under this
                    subtitle; and
                      (D) using published aggregate data from the
                    National Agricultural Statistics Service or any
                    other data source to--
                              (i) detect yield disparities or other
                            data anomalies that indicate potential
                            fraud; and
                              (ii) target the relevant counties,
                            crops, regions, companies, or agents
                            associated with that potential fraud
                            for audits and other enforcement
                            actions.
              (2) FSA inquiry.--If, within five calendar days after
            receiving a report submitted under paragraph (1)(B),
            the Corporation does not provide a written response
            that describes the intended actions of the Corporation,
            the Farm Service Agency may conduct its own inquiry
            into the alleged program fraud, waste, or abuse on
            approval from the State director of the Farm Service
            Agency of the State in which the alleged fraud, waste,
            or abuse occurred. If as a result of the inquiry, the
            Farm Service Agency concludes further investigation is
            warranted, but the Corporation declines to proceed with
            the investigation, the Farm Service Agency may refer
            the matter to the Inspector General of the Department
            of Agriculture.
              (3) Use of field infrastructure.--The plan required
            by paragraph (1) shall provide for the use of the field
            infrastructure of the Farm Service Agency. The
            Secretary shall ensure that relevant Farm Service
            Agency personnel are appropriately trained for any
            responsibilities assigned to the personnel under the
            plan. At a minimum, the personnel shall receive the
            same level of training and pass the same basic
            competency tests as required of loss adjusters of
            approved insurance providers.
              (4) Maintenance of provider effort.--
                      (A) In general.--The activities of the Farm
                    Service Agency under this subsection do not
                    affect the responsibility of approved insurance
                    providers to conduct any audits of claims or
                    other program reviews required by the
                    Corporation.
                      (B) Notification of providers.--The
                    Corporation shall notify the appropriate
                    approved insurance provider of a report from
                    the Farm Service Agency regarding alleged
                    program fraud, waste, or abuse, unless the
                    provider is suspected to be included in, or a
                    party to, the alleged fraud, waste, or abuse.
                      (C) Response.--An approved insurance provider
                    that receives a notice under subparagraph (B)
                    shall submit a report to the Corporation,
                    within an appropriate time period determined by
                    the Secretary, describing the actions taken by
                    the provider to investigate the allegations of
                    program fraud, waste, or abuse contained in the
                    notice.
              (5) Corporation response to provider reports.--
                      (A) Prompt response.--If an approved
                    insurance provider reports to the Corporation
                    that the approved insurance provider suspects
                    intentional misrepresentation, fraud, waste, or
                    abuse, the Corporation shall make a
                    determination and provide, within 90 calendar
                    days after receiving the report, a written
                    response that describes the intended actions of
                    the Corporation.
                      (B) Cooperative effort.--The approved
                    insurance provider and the Corporation shall
                    take coordinated action in any case where
                    misrepresentation, fraud, waste, or abuse is
                    alleged.
                      (C) Failure to timely respond.--If the
                    Corporation fails to respond as required by
                    subparagraph (A), an approved insurance
                    provider may request the Farm Service Agency to
                    assist the provider in an inquiry into the
                    alleged program fraud, waste, or abuse.
      (e) Consultation with State FSA Committees.--The Secretary
    shall establish procedures under which the Corporation shall
    consult with the State committee of the Farm Service Agency for
    a State with respect to policies, plans of insurance, and
    material related to such policies or plans of insurance
    (including applicable sales closing dates, assigned yields, and
    transitional yields) offered in that State under this subtitle.
      (f) Detection of Disparate Performance.--
              (1) Covered activities.--The Secretary shall
            establish procedures under which the Corporation will
            be able to identify the following:
                      (A) Any agent engaged in the sale of coverage
                    offered under this subtitle where the loss
                    claims associated with such sales by the agent
                    are equal to or greater than 150 percent (or an
                    appropriate percentage specified by the
                    Corporation) of the mean for all loss claims
                    associated with such sales by all other agents
                    operating in the same area, as determined by
                    the Corporation.
                      (B) Any person performing loss adjustment
                    services relative to coverage offered under
                    this subtitle where such loss adjustments
                    performed by the person result in accepted or
                    denied claims equal to or greater than 150
                    percent (or an appropriate percentage specified
                    by the Corporation) of the mean for accepted or
                    denied claims (as applicable) for all other
                    persons performing loss adjustment services in
                    the same area, as determined by the
                    Corporation.
              (2) Review.--
                      (A) Review required.--The Corporation shall
                    conduct a review of any agent identified under
                    paragraph (1)(A), and any person identified
                    under paragraph (1)(B), to determine whether
                    the higher loss claims associated with the
                    agent or the higher number of accepted or
                    denied claims (as applicable) associated with
                    the person are the result of fraud, waste, or
                    abuse.
                      (B) Remedial action.--The Corporation shall
                    take appropriate remedial action with respect
                    to any occurrence of fraud, waste, or abuse
                    identified in a review conducted under this
                    paragraph.
              (3) Oversight of agents and loss adjusters.--The
            Corporation shall develop procedures to require an
            annual review by an approved insurance provider of the
            performance of each agent and loss adjuster used by the
            approved insurance provider. The Corporation shall
            oversee the conduct of annual reviews and may consult
            with an approved insurance provider regarding any
            remedial action that is determined to be necessary as a
            result of the annual review of an agent or loss
            adjuster.
      (g) Submission of Information to Corporation to Support
    Compliance Efforts.--
              (1) Types of information required.--The Secretary
            shall establish procedures under which approved
            insurance providers shall submit to the Corporation the
            following information with respect to each policy or
            plan of insurance offered under this subtitle:
                      (A) The name and identification number of the
                    insured.
                      (B) The agricultural commodity to be insured.
                      (C) The elected coverage level, including the
                    price election, of the insured.
                      (D) The actual production history to be used
                    to establish insurable yields.
              (2) Time for submission.--
                      (A) In general.--The information required to
                    be submitted under subparagraphs (A) through
                    (C) of paragraph (1) with respect to a policy
                    or plan of insurance shall be submitted so as
                    to ensure receipt by the Corporation not later
                    than the Saturday of the week containing the
                    calendar day that is 30 days after the
                    applicable sales closing date for the crop to
                    be insured.
                      (B) Actual production history.--
                              (i) In general.--The information
                            required to be submitted under
                            paragraph (1)(D) with respect to an
                            applicable policy or plan of insurance
                            for a covered commodity (as defined in
                            section 1111 of the Agricultural Act of
                            2014 (7 U.S.C. 9011)) shall be
                            submitted so as to ensure receipt by
                            the Corporation not later than the
                            Saturday of the week containing the
                            calendar day that is 30 days after the
                            applicable production reporting date
                            for the crop to be insured.
                              (ii) Correction of errors.--Nothing
                            in clause (i) limits the ability of an
                            approved insurance provider to correct
                            any error in the information submitted
                            under paragraph (1)(D) after receipt of
                            the information by the Corporation in
                            accordance with clause (i).
      (h) Sanctions for Program Noncompliance and Fraud.--
              (1) False information.--A producer, agent, loss
            adjuster, approved insurance provider, or other person
            that willfully and intentionally provides any false or
            inaccurate information to the Corporation or to an
            approved insurance provider with respect to a policy or
            plan of insurance under this subtitle may, after notice
            and an opportunity for a hearing on the record, be
            subject to one or more of the sanctions described in
            paragraph (3).
              (2) Compliance.--A person may, after notice and an
            opportunity for a hearing on the record, be subject to
            one or more of the sanctions described in paragraph (3)
            if the person is a producer, agent, loss adjuster,
            approved insurance provider, or other person that
            willfully and intentionally fails to comply with a
            requirement of the Corporation.
              (3) Authorized sanctions.--If the Secretary
            determines that a person covered by this subsection has
            committed a material violation under paragraph (1) or
            (2), the following sanctions may be imposed:
                      (A) Civil fines.--A civil fine may be imposed
                    for each violation in an amount not to exceed
                    the greater of--
                              (i) the amount of the pecuniary gain
                            obtained as a result of the false or
                            inaccurate information provided or the
                            noncompliance with a requirement of
                            this subtitle; or
                              (ii) $10,000.
                      (B) Producer disqualification.--In the case
                    of a violation committed by a producer, the
                    producer may be disqualified for a period of up
                    to 5 years from receiving any monetary or
                    nonmonetary benefit provided under each of the
                    following:
                              (i) This subtitle.
                              (ii) The Agricultural Market
                            Transition Act (7 U.S.C. 7201 et seq.),
                            including the noninsured crop disaster
                            assistance program under section 196 of
                            that Act (7 U.S.C. 7333).
                              (iii) The Agricultural Act of 1949 (7
                            U.S.C. 1421 et seq.).
                              (iv) The Commodity Credit Corporation
                            Charter Act (15 U.S.C. 714 et seq.).
                              (v) The Agricultural Adjustment Act
                            of 1938 (7 U.S.C. 1281 et seq.).
                              (vi) Title XII of the Food Security
                            Act of 1985 (16 U.S.C. 3801 et seq.).
                              (vii) The Consolidated Farm and Rural
                            Development Act (7 U.S.C. 1921 et
                            seq.).
                              (viii) Any law that provides
                            assistance to a producer of an
                            agricultural commodity affected by a
                            crop loss or a decline in the prices of
                            agricultural commodities.
                      (C) Disqualification of other persons.--In
                    the case of a violation committed by an agent,
                    loss adjuster, approved insurance provider, or
                    other person (other than a producer), the
                    violator may be disqualified for a period of up
                    to 5 years from participating in any program,
                    or receiving any benefit, under this subtitle.
              (4) Assessment of sanction.--The Secretary shall
            consider the gravity of the violation of the person
            covered by this subsection in determining--
                      (A) whether to impose a sanction under this
                    subsection; and
                      (B) the type and amount of the sanction to be
                    imposed.
              (5) Disclosure of sanctions.--Each policy or plan of
            insurance under this subtitle shall provide notice
            describing the sanctions prescribed under paragraph (3)
            for willfully and intentionally--
                      (A) providing false or inaccurate information
                    to the Corporation or to an approved insurance
                    provider; or
                      (B) failing to comply with a requirement of
                    the Corporation.
              (6) Insurance fund.--Any funds collected under this
            subsection shall be deposited into the insurance fund
            established under section 516(c).
      (i) Annual Report on Program Compliance and Integrity
    Efforts.--
              (1) Report required.--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 an annual report
            describing the operation of this section during the
            preceding year and efforts undertaken by the Secretary
            and the Corporation to carry out this section.
              (2) Information regarding fraud, waste, and abuse.--
            The report shall identify specific occurrences of
            waste, fraud, or abuse and contain an outline of
            actions that have been or are being taken to eliminate
            the identified waste, fraud, or abuse.
      (j) Information Management.--
              (1) Systems maintenance and upgrades.--
                      (A) In general.--The Secretary shall maintain
                    and upgrade the information management systems
                    of the Corporation used in the administration
                    and enforcement of this subtitle.
                      (B) Requirement.--
                              (i) In general.--In maintaining and
                            upgrading the systems, the Secretary
                            shall ensure that new hardware and
                            software are compatible with the
                            hardware and software used by other
                            agencies of the Department to maximize
                            data sharing and promote the purposes
                            of this section.
                              (ii) Acreage report streamlining
                            initiative project.--As soon as
                            practicable, the Secretary shall
                            develop and implement an acreage report
                            streamlining initiative project to
                            allow producers to report acreage and
                            other information directly to the
                            Department.
              (2) Use of available information technologies.--The
            Secretary shall use the information technologies known
            as data mining and data warehousing and other available
            information technologies to administer and enforce this
            subtitle.
              (3) Use of private sector.--The Secretary may enter
            into contracts to use private sector expertise and
            technological resources in implementing this
            subsection, which shall be subject to competition on a
            periodic basis, as determined by the Secretary.
      (k) Continuing Education for Loss Adjusters and Agents.--
              (1) In general.--The Corporation shall establish
            requirements for continuing education for loss
            adjusters and agents of approved insurance providers.
              (2) Requirements.--The requirements for continuing
            education described in paragraph (1) shall ensure that
            loss adjusters and agents of approved insurance
            providers are familiar with--
                      (A) the policies and plans of insurance
                    available under this Act, including the
                    regulations promulgated to carry out this Act;
                      (B) efforts to promote program integrity
                    through the elimination of waste, fraud, and
                    abuse; and
                      (C) other aspects of adjusting, delivering,
                    and servicing policies and plans of insurance
                    by adjustors and agents, as determined by the
                    Secretary, including conservation activities
                    and agronomic practices (including organic and
                    sustainable practices) that are common and
                    appropriate to the area in which the insured
                    crop being inspected is produced.
      (l) Funding.--
              (1) Information technology.--
                      (A) In general.--For purposes of subsection
                    (j)(1), the Corporation may use, from amounts
                    made available from the insurance fund
                    established under section 516(c), not more
                    than--
                              (i)(I) for fiscal year 2014,
                            $14,000,000; and
                              (II) for each of fiscal years 2015
                            through 2018, $9,000,000; or
                              (ii) if the Acreage Crop Reporting
                            Streamlining Initiative (ACRSI) project
                            is substantially completed by September
                            30, 2015, not more than $14,000,000 for
                            each of the fiscal years 2015 through
                            2018.
                      (B) Notification.--The Secretary shall notify
                    the Committee on Agriculture of the House of
                    Representatives and the Committee on
                    Agriculture, Nutrition, and Forestry of the
                    Senate of the substantial completion of the
                    Acreage Crop Reporting Streamlining Initiative
                    (ACRSI) project not later than July 1, 2015.
              (2) Data mining.--To carry out subsection (j)(2), the
            Corporation may use, from amounts made available from
            the insurance fund established under section 516(c),
            not more than--
                      (A) $4,000,000 for each of fiscal years 2009
                    through 2025; and
                      (B) $6,000,000 for fiscal year 2026 and each
                    subsequent fiscal year.

               *       *       *       *       *       *       *

    SEC. 522. RESEARCH AND DEVELOPMENT.

      (a) Definition of Policy.--In this section, the term
    ``policy'' means a policy, plan of insurance, provision of a
    policy or plan of insurance, and related materials.
      (b) Reimbursement of Research, Development, and Maintenance
    Costs.--
              (1) Research and development payment.--
                      (A) In general.--The Corporation shall
                    provide a payment to an applicant for research
                    and development costs in accordance with this
                    subsection.
                      (B) Reimbursement.--
                              (i) In general.--An applicant who
                            submits a policy under section 508(h)
                            shall be eligible for the reimbursement
                            of reasonable research and development
                            costs if the policy is approved by the
                            Board for sale to producers.
                              (ii) Reasonable costs.--For the
                            purpose of reimbursing research and
                            development and maintenance costs under
                            this section, costs of the applicant
                            shall be considered reasonable costs if
                            the costs are based on--
                                      (I) for any employees or
                                    contracted personnel, wage
                                    rates equal to not more than 2
                                    times the hourly wage rate plus
                                    benefits, as provided by the
                                    Bureau of Labor Statistics for
                                    the year in which such costs
                                    are incurred, calculated using
                                    the formula applied to an
                                    applicant by the Corporation in
                                    reviewing proposed project
                                    budgets under this section on
                                    October 1, 2016; and
                                      (II) other actual documented
                                    costs incurred by the
                                    applicant.
              (2) Advance payments.--
                      (A) In general.--Subject to the other
                    provisions of this paragraph, the Board may
                    approve the request of an applicant for advance
                    payment of a portion of reasonable research and
                    development costs prior to submission and
                    approval of the policy by the Board under
                    section 508(h).
                      (B) Procedures.--The Board shall establish
                    procedures for approving advance payment of
                    reasonable research and development costs to
                    applicants.
                      (C) Concept proposal.--As a condition of
                    eligibility for advance payments, an applicant
                    shall submit a concept proposal for the policy
                    that the applicant plans to submit to the Board
                    under section 508(h), consistent with
                    procedures established by the Board for
                    submissions under subparagraph (B), including--
                              (i) a summary of the qualifications
                            of the applicant, including any prior
                            concept proposals and submissions to
                            the Board under section 508(h) and, if
                            applicable, any work conducted under
                            this section;
                              (ii) a projection of total research
                            and development costs that the
                            applicant expects to incur;
                              (iii) a description of the need for
                            the policy, the marketability of and
                            expected demand for the policy among
                            affected producers, and the potential
                            impact of the policy on producers and
                            the crop insurance delivery system;
                              (iv) a summary of data sources
                            available to demonstrate that the
                            policy can reasonably be developed and
                            actuarially appropriate rates
                            established; and
                              (v) an identification of the risks
                            the proposed policy will cover and an
                            explanation of how the identified risks
                            are insurable under this subtitle.
                      (D) Review.--
                              (i) Experts.--If the requirements of
                            subparagraph (B) and (C) are met, the
                            Board may submit a concept proposal
                            described in subparagraph (C) to not
                            less than 2 independent expert
                            reviewers, whose services are
                            appropriate for the type of concept
                            proposal submitted, to assess the
                            likelihood that the proposed policy
                            being developed will result in a viable
                            and marketable policy, as determined by
                            the Board.
                              (ii) Timing.--The time frames
                            described in subparagraphs (C) and (D)
                            of section 508(h)(4) shall apply to the
                            review of concept proposals under this
                            subparagraph.
                      (E) Approval.--
                              (i) In general.--The Board may
                            approve up to 50 percent of the
                            projected total research and
                            development costs to be paid in advance
                            to an applicant, in accordance with the
                            procedures developed by the Board for
                            the making of the payments, if, after
                            consideration of the reviewer reports
                            described in subparagraph (D) and such
                            other information as the Board
                            determines appropriate, the Board
                            determines that--
                                      (I) the concept, in good
                                    faith, will likely result in a
                                    viable and marketable policy
                                    consistent with section 508(h);
                                      (II) at the sole discretion
                                    of the Board, the concept, if
                                    developed into a policy and
                                    approved by the Board, would
                                    provide crop insurance
                                    coverage--
                                              (aa) in a
                                            significantly improved
                                            form;
                                              (bb) to a crop or
                                            region not
                                            traditionally served by
                                            the Federal crop
                                            insurance program; or
                                              (cc) in a form that
                                            addresses a recognized
                                            flaw or problem in the
                                            program;
                                      (III) the applicant agrees to
                                    provide such reports as the
                                    Corporation determines are
                                    necessary to monitor the
                                    development effort;
                                      (IV) the proposed budget and
                                    timetable are reasonable, as
                                    determined by the Board; and
                                      (V) the concept proposal
                                    meets any other requirements
                                    that the Board determines
                                    appropriate.
                              (ii) Waiver.--The Board may waive the
                            50-percent limitation and, upon request
                            of the submitter after the submitter
                            has begun research and development
                            activities, the Board may approve an
                            additional 25 percent advance payment
                            to the submitter for research and
                            development costs, if, at the sole
                            discretion of the Board, the Board
                            determines that--
                                      (I) the intended policy or
                                    plan of insurance developed by
                                    the submitter will provide
                                    coverage for a region or crop
                                    that is underserved by the
                                    Federal crop insurance program,
                                    including specialty crops; and
                                      (II) the submitter is making
                                    satisfactory progress towards
                                    developing a viable and
                                    marketable policy or plan of
                                    insurance consistent with
                                    section 508(h).
                      (F) Submission of policy.--If the Board
                    approves an advanced payment under subparagraph
                    (E), the Board shall establish a date by which
                    the applicant shall present a submission in
                    compliance with section 508(h) (including the
                    procedures implemented under that section) to
                    the Board for approval.
                      (G) Final payment.--
                              (i) Approved policies.--If a policy
                            is submitted under subparagraph (F) and
                            approved by the Board under section
                            508(h) and the procedures established
                            by the Board (including procedures
                            established under subparagraph (B)),
                            the applicant shall be eligible for a
                            payment of reasonable research and
                            development costs in the same manner as
                            policies reimbursed under paragraph
                            (1)(B), less any payments made pursuant
                            to subparagraph (E).
                              (ii) Policies not approved.--If a
                            policy is submitted under subparagraph
                            (F) and is not approved by the Board
                            under section 508(h), the Corporation
                            shall--
                                      (I) not seek a refund of any
                                    payments made in accordance
                                    with this paragraph; and
                                      (II) not make any further
                                    research and development cost
                                    payments associated with the
                                    submission of the policy under
                                    this paragraph.
                      (H) Policy not submitted.--If an applicant
                    receives an advance payment and fails to
                    fulfill the obligation of the applicant to the
                    Board by not submitting a completed submission
                    without just cause and in accordance with the
                    procedures established under subparagraph (B)),
                    including notice and reasonable opportunity to
                    respond, as determined by the Board, the
                    applicant shall return to the Board the amount
                    of the advance plus interest.
                      (I) Repeated submissions.--The Board may
                    prohibit advance payments to applicants who
                    have submitted--
                              (i) a concept proposal or submission
                            that did not result in a marketable
                            product; or
                              (ii) a concept proposal or submission
                            of poor quality.
                      (J) Continued eligibility.--A determination
                    that an applicant is not eligible for advance
                    payments under this paragraph shall not prevent
                    an applicant from reimbursement under paragraph
                    (1)(B).
                      (K) Waiver for hemp.--The Board may waive the
                    viability and marketability requirements under
                    this paragraph in the case of research and
                    development relating to a policy to insure the
                    production of hemp.
              (3) Marketability.--
                      (A) In general.--Subject to subparagraph (B),
                    the Corporation shall approve a reimbursement
                    under paragraph (1) only after determining that
                    the policy is marketable based on a reasonable
                    marketing plan, as determined by the Board.
                      (B) Waiver for hemp.--The Corporation may
                    waive the marketability requirement under
                    subparagraph (A) in the case of research and
                    development relating to a policy to insure the
                    production of hemp.
              (4) Maintenance payments.--
                      (A) Requirement.--The Corporation shall
                    reimburse maintenance costs associated with the
                    annual cost of underwriting for a policy
                    described in paragraph (1).
                      (B) Duration.--Payments with respect to
                    maintenance costs may be provided for a period
                    of not more than four reinsurance years
                    subsequent to Board approval for payment under
                    this subsection.
                      (C) Options for maintenance.--On the
                    expiration of the 4-year period described in
                    subparagraph (B), the applicant responsible for
                    maintenance of the policy may--
                              (i) maintain the policy and charge a
                            fee to approved insurance providers
                            that elect to sell the policy under
                            this subsection; or
                              (ii) transfer responsibility for
                            maintenance of the policy to the
                            Corporation.
                      (D) Fee.--
                              (i) Amount.--Subject to approval by
                            the Board, the amount of the fee that
                            is payable by an approved insurance
                            provider that elects to sell the policy
                            shall be an amount that is determined
                            by the applicant maintaining the
                            policy.
                              (ii) Approval.--The Board shall
                            approve the amount of a fee determined
                            under clause (i) for maintenance of the
                            policy unless the Board determines that
                            the amount of the fee--
                                      (I) is unreasonable in
                                    relation to the maintenance
                                    costs associated with the
                                    policy; or
                                      (II) unnecessarily inhibits
                                    the use of the policy.
                              (iii) Review.--After the Board
                            approves the amount of a fee under
                            clause (ii), the fee shall remain in
                            effect and not be reviewed by the Board
                            unless--
                                      (I) the applicant petitions
                                    the Board for reconsideration
                                    of the fee;
                                      (II) a substantial change is
                                    made to the policy, as
                                    determined by the Board; or
                                      (III) there is substantial
                                    evidence that the fee is
                                    inhibiting sales or use of the
                                    policy, as determined by the
                                    Board.
              (5) Treatment of payment.--Payments made under this
            subsection for a policy shall be considered as payment
            in full by the Corporation for the research and
            development conducted with regard to the policy and any
            property rights to the policy.
              (6) Reimbursement amount.--The Corporation shall
            determine the amount of the payment under this
            subsection for an approved policy based on the
            complexity of the policy and the size of the area in
            which the policy or material is expected to be sold.
      (c) Research and Development Authority.--
              (1) Authority.--The Corporation may conduct
            activities or enter into contracts to carry out
            research and development to maintain or improve
            existing policies or develop new policies to--
                      (A) increase participation in States in which
                    the Corporation determines that--
                              (i) there is traditionally, and
                            continues to be, a low level of Federal
                            crop insurance participation and
                            availability; and
                              (ii) the State is underserved by the
                            Federal crop insurance program;
                      (B) increase participation in areas that are
                    underserved by the Federal crop insurance
                    program; and
                      (C) increase participation by producers of
                    underserved agricultural commodities, including
                    specialty crops.
              (2) Underserved agricultural commodities and areas.--
                      (A) Authority.--The Corporation may conduct
                    research and development or enter into
                    contracts under procedures prescribed by the
                    Corporation with qualified persons to carry out
                    research and development for policies that
                    promote the purposes of paragraph (1).
                      (B) Consultation.--Before conducting research
                    and development or entering into a contract
                    under subparagraph (A), the Corporation shall
                    consult with groups representing producers of
                    agricultural commodities that would be served
                    by the policies that are the subject of the
                    research and development.
              (3) Qualified persons.--A person with experience in
            crop insurance or farm or ranch risk management
            (including a college or university, an approved
            insurance provider, and a trade or research
            organization), as determined by the Corporation, shall
            be eligible to enter into a contract with the
            Corporation under this subsection.
              (4) Types of contracts.--A contract under this
            subsection may provide for research and development
            regarding new or expanded policies, including policies
            based on adjusted gross income, cost-of-production,
            quality losses, and an intermediate base program with a
            higher coverage and cost than catastrophic risk
            protection.
              (5) Use of resulting policies.--The Corporation may
            offer any policy developed under this subsection that
            is approved by the Board after expert review in
            accordance with section 505(e).
              (6) Research and development priorities.--The
            Corporation shall establish as one of the highest
            research and development priorities of the Corporation
            the development of policies that increase participation
            by producers of underserved agricultural commodities,
            including sweet sorghum, biomass sorghum, rice,
            peanuts, sugarcane, alfalfa, pennycress, dedicated
            energy crops, and specialty crops.
              (7) Whole farm diversified risk management insurance
            plan.--
                      (A) In general.--Unless the Corporation
                    approves a whole farm insurance plan, similar
                    to the plan described in this paragraph, to be
                    available to producers for the 2016 reinsurance
                    year, the Corporation shall conduct activities
                    or enter into contracts to carry out research
                    and development to develop a whole farm risk
                    management insurance plan, with a liability
                    limitation of $1,500,000, that allows a
                    diversified crop or livestock producer the
                    option to qualify for an indemnity if actual
                    gross farm revenue is below 85 percent of the
                    average gross farm revenue or the expected
                    gross farm revenue that can reasonably be
                    expected of the producer, as determined by the
                    Corporation.
                      (B) Eligible producers.--The Corporation
                    shall permit producers (including direct-to-
                    consumer marketers and producers servicing
                    local and regional and farm identity-preserved
                    markets) who produce multiple agricultural
                    commodities, including specialty crops,
                    industrial crops, livestock, and aquaculture
                    products, to participate in the plan developed
                    under subparagraph (A) in lieu of any other
                    plan under this subtitle.
                      (C) Diversification.--The Corporation may
                    provide diversification-based additional
                    coverage payment rates, premium discounts, or
                    other enhanced benefits in recognition of the
                    risk management benefits of crop and livestock
                    diversification strategies for producers that--
                              (i) grow multiple crops; or
                              (ii) may have income from the
                            production of livestock that uses a
                            crop grown on the farm.
                      (D) Market readiness.--The Corporation may
                    include coverage for the value of any packing,
                    packaging, or any other similar on-farm
                    activity the Corporation determines to be the
                    minimum required in order to remove the
                    commodity from the field.
                      (E) Review of modifications to improve
                    effectiveness.--
                              (i) In general.--Not later than 18
                            months after the date of enactment of
                            the Agriculture Improvement Act of
                            2018--
                                      (I) the Corporation shall
                                    hold stakeholder meetings to
                                    solicit producer and agent
                                    feedback; and
                                      (II) the Board shall--
                                              (aa) review
                                            procedures and
                                            paperwork requirements
                                            on agents and
                                            producers; and
                                              (bb) modify
                                            procedures and
                                            requirements, as
                                            appropriate, to
                                            decrease burdens and
                                            increase flexibility
                                            and effectiveness.
                              (ii) Factors.--In carrying out items
                            (aa) and (bb) of subclause (i)(II), the
                            Board shall consider--
                                      (I) removing caps on nursery
                                    and livestock production;
                                      (II) allowing a waiver to
                                    expand operations, especially
                                    for small and beginning
                                    farmers;
                                      (III) minimizing paperwork
                                    for producers and agents;
                                      (IV) implementing an option
                                    for producers with less than
                                    $1,000,000 in gross revenue
                                    that requires significantly
                                    less paperwork and
                                    recordkeeping;
                                      (V) developing and using
                                    alternative records such as
                                    time-stamped photographs or
                                    technology applications to
                                    document planting and
                                    production history;
                                      (VI) treating the different
                                    growth stages of aquaculture
                                    species as separate crops to
                                    recognize the difference in
                                    perils at different phases of
                                    growth;
                                      (VII) moderating the impacts
                                    of disaster years on historic
                                    revenue, such as--
                                              (aa) using an average
                                            of the historic and
                                            projected revenue;
                                              (bb) counting
                                            indemnities as historic
                                            revenue for loss years;
                                              (cc) counting
                                            payments under section
                                            196 of the Federal
                                            Agriculture Improvement
                                            and Reform Act of 1996
                                            (7 U.S.C. 7333) as
                                            historic revenue for
                                            loss years; or
                                              (dd) using an
                                            assigned yield floor
                                            similar to the
                                            limitation described in
                                            section
                                            508(g)(6)(A)(i), as
                                            determined by the
                                            Secretary;
                                      (VIII) improving agent
                                    training and outreach to
                                    underserved regions and sectors
                                    such as small dairy farms; and
                                      (IX) providing coverage and
                                    indemnification of insurable
                                    losses--
                                              (aa) after the losses
                                            exceed the deductible;
                                            and
                                              (bb) up to the
                                            maximum amount of total
                                            coverage.
                              (iii) Additional review.--Not later
                            than 12 months after the date of
                            enactment of this clause and annually
                            thereafter, the Corporation shall--
                                      (I) review any limitations on
                                    insurable revenue (including
                                    the overall limitation and
                                    limitations specific to
                                    animals, animal products,
                                    greenhouse and nursery, and
                                    aquaculture) to ensure such
                                    limitations are adequate to
                                    cover the financial risks
                                    associated with the production
                                    of high-value agricultural
                                    products; and
                                      (II) 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 includes a
                                    summary of the most recent
                                    review conducted and any
                                    expected changes to the policy
                                    for the following reinsurance
                                    year.
              (8) Relation to limitations.--A policy developed
            under this subsection may be prepared without regard to
            the limitations of this subtitle, including--
                      (A) the requirement concerning the levels of
                    coverage and rates; and
                      (B) the requirement that the price level for
                    each insured agricultural commodity must equal
                    the expected market price for the agricultural
                    commodity, as established by the Board.
              (9) Tropical storm or hurricane insurance.--
                      (A) In general.--The Corporation shall carry
                    out research and development, or offer to enter
                    into 1 or more contracts with 1 or more
                    qualified persons to carry out research and
                    development, regarding a policy to insure crops
                    (including tomatoes, peppers, and citrus)
                    against losses due to a tropical storm or
                    hurricane.
                      (B) Research and development.--Research and
                    development under subparagraph (A) shall--
                              (i) evaluate the effectiveness of
                            risk management tools for a low
                            frequency and catastrophic loss weather
                            event; and
                              (ii) result in a policy that provides
                            protection for at least 1 of the
                            following:
                                      (I) Production loss.
                                      (II) Revenue loss.
                      (C) Report.--Not later than 1 year after the
                    date of enactment of the Agriculture
                    Improvement Act of 2018, the Corporation 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--
                              (i) the results of the research and
                            development carried out under this
                            paragraph; and
                              (ii) any recommendations with respect
                            to those results.
              (10) Quality loss.--
                      (A) In general.--The Corporation shall carry
                    out research and development, or offer to enter
                    into 1 or more contracts with 1 or more
                    qualified persons to carry out research and
                    development, regarding the establishment of
                    each of the following alternative methods of
                    adjusting for quality losses:
                              (i) A method that does not impact the
                            actual production history of a
                            producer.
                              (ii) A method that provides that, in
                            circumstances in which a producer has
                            suffered a quality loss to the insured
                            crop of the producer that is
                            insufficient to trigger an indemnity
                            payment, the producer may elect to
                            exclude that quality loss from the
                            actual production history of the
                            producer.
                              (iii) 1 or more methods that combine
                            the methods described in clauses (i)
                            and (ii).
                      (B) Requirements.--Notwithstanding
                    subsections (g) and (m) of section 508, any
                    method developed under subparagraph (A) that is
                    used by the Corporation shall be--
                              (i) optional for a producer to use;
                            and
                              (ii) offered at an actuarially sound
                            premium rate.
                      (C) Report.--Not later than 1 year after the
                    date of enactment of the Agriculture
                    Improvement Act of 2018, the Corporation 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--
                              (i) the results of the research and
                            development carried out under
                            subparagraph (A); and
                              (ii) any recommendations with respect
                            to those results.
              (11) Citrus.--
                      (A) In general.--The Corporation shall carry
                    out research and development, or offer to enter
                    into 1 or more contracts with 1 or more
                    qualified persons to carry out research and
                    development, regarding the insurance of citrus
                    fruit commodities and commodity types,
                    including research and development of--
                              (i) improvements to 1 or more
                            existing policies, including the whole-
                            farm revenue protection pilot policy;
                              (ii) alternative methods of insuring
                            revenue for citrus fruit commodities
                            and commodity types; and
                              (iii) the development of new, or
                            expansion of existing, revenue policies
                            for citrus fruit commodities and
                            commodity types.
                      (B) Report.--Not later than 1 year after the
                    date of enactment of the Agriculture
                    Improvement Act of 2018, the Corporation 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--
                              (i) the results of the research and
                            development carried out under
                            subparagraph (A); and
                              (ii) any recommendations with respect
                            to those results.
              (12) Hops.--
                      (A) In general.--The Corporation shall carry
                    out research and development, or offer to enter
                    into 1 or more contracts with 1 or more
                    qualified persons to carry out research and
                    development, regarding a policy to insure the
                    production of hops or revenue derived from the
                    production of hops.
                      (B) Report.--Not later than 1 year after the
                    date of enactment of the Agriculture
                    Improvement Act of 2018, the Corporation 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--
                              (i) the results of the research and
                            development carried out under
                            subparagraph (A); and
                              (ii) any recommendations with respect
                            to those results.
              (13) Subsurface irrigation practices.--
                      (A) In general.--The Corporation shall carry
                    out research and development, or offer to enter
                    into 1 or more contracts with 1 or more
                    qualified persons to carry out research and
                    development, regarding the creation of a
                    separate practice for subsurface irrigation,
                    including the establishment of a separate
                    transitional yield within a county that is
                    reflective of the average gain in productivity
                    and yield associated with the installation of a
                    subsurface irrigation system.
                      (B) Report.--Not later than 18 months after
                    the date of enactment of the Agriculture
                    Improvement Act of 2018, the Corporation 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--
                              (i) the results of the research and
                            development carried out under
                            subparagraph (A); and
                              (ii) any recommendations with respect
                            to those results.
              (14) Grain sorghum.--
                      (A) In general.--The Corporation shall carry
                    out research and development, or offer to enter
                    into 1 or more contracts with 1 or more
                    qualified persons to carry out research and
                    development--
                              (i) regarding improvements to 1 or
                            more policies to insure irrigated grain
                            sorghum;
                              (ii) regarding alternative methods
                            for producers with not more than 4
                            years of production history to insure
                            irrigated grain sorghum; and
                              (iii) to assess, by county, the
                            difference in the rate, average yield,
                            and coverage level of grain sorghum
                            policies compared to policies for other
                            feed grains in that county.
                      (B) Report.--Not later than 18 months after
                    the date of enactment of the Agriculture
                    Improvement Act of 2018, the Corporation 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--
                              (i) the results of the research and
                            development carried out under
                            subparagraph (A); and
                              (ii) any recommendations with respect
                            to those results.
              (15) Limited irrigation practices.--
                      (A) Authority.--The Corporation shall--
                              (i) consider expanding the
                            availability of the limited irrigation
                            insurance program to neighboring and
                            similarly situated States (such as the
                            States of Colorado and Nebraska), as
                            determined by the Secretary;
                              (ii) carry out research, or offer to
                            enter into 1 or more contracts with 1
                            or more qualified persons to carry out
                            research, on the marketability of the
                            existing limited irrigation insurance
                            program; and
                              (iii) make recommendations on how to
                            improve participation in that program.
                      (B) Research.--In carrying out research under
                    subparagraph (A), a qualified person shall--
                              (i) collaborate with researchers on
                            the subjects of--
                                      (I) reduced irrigation
                                    practices or limited irrigation
                                    practices; and
                                      (II) expected yield
                                    reductions following the
                                    application of reduced
                                    irrigation;
                              (ii) collaborate with State and
                            Federal officials responsible for the
                            collection of water and the regulation
                            of water use for the purpose of
                            irrigation;
                              (iii) provide recommendations to
                            encourage producers to carry out
                            limited irrigation practices or reduced
                            irrigation and water conservation
                            practices; and
                              (iv) develop web-based applications
                            that will streamline access to coverage
                            for producers electing to conserve
                            water use on irrigated crops.
                      (C) Report.--Not later than 18 months after
                    the date of enactment of the Agriculture
                    Improvement Act of 2018, the Corporation 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--
                              (i) the results of the research
                            carried out under subparagraphs (A) and
                            (B);
                              (ii) any recommendations to encourage
                            producers to carry out limited
                            irrigation practices or reduced
                            irrigation and water conservation
                            practices; and
                              (iii) the actions taken by the
                            Corporation to carry out the
                            recommendations described in clause
                            (ii).
              (16) Insurable irrigation practices for rice.--
                      (A) In general.--The Corporation shall carry
                    out research and development, or offer to enter
                    into 1 or more contracts with 1 or more
                    qualified persons to carry out research and
                    development, to include new and innovative
                    irrigation practices under the current rice
                    policy or the development of a distinct policy
                    endorsement rated for rice produced using--
                              (i) alternate wetting and drying
                            practices (also referred to as
                            ``intermittent flooding''); and
                              (ii) furrow irrigation practices.
                      (B) Report.--Not later than 18 months after
                    the date of enactment of the Agriculture
                    Improvement Act of 2018, the Corporation 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--
                              (i) the results of the research and
                            development carried out under paragraph
                            (1); and
                              (ii) any recommendations with respect
                            to those results.
              (17) Greenhouse policy.--
                      (A) In general.--
                              (i) Research and development.--The
                            Corporation shall carry out research
                            and development, or offer to enter into
                            1 or more contracts with 1 or more
                            qualified persons to carry out research
                            and development, regarding a policy to
                            insure in a controlled environment such
                            as a greenhouse--
                                      (I) the production of
                                    floriculture, nursery, and
                                    bedding plants;
                                      (II) the establishment of
                                    cuttings or tissue culture in a
                                    growing medium; or
                                      (III) other similar
                                    production, as determined by
                                    the Secretary.
                              (ii) Availability of policy.--
                            Notwithstanding the last sentence of
                            section 508(a)(1), and section
                            508(a)(2), the Corporation shall make a
                            policy described in clause (i)
                            available if the requirements of
                            section 508(h) are met.
                      (B) Research and development described.--
                    Research and development described in
                    subparagraph (A)(i) shall evaluate the
                    effectiveness of policies for the production of
                    plants in a controlled environment, including
                    policies that--
                              (i) are based on the risk of--
                                      (I) plant diseases introduced
                                    from the environment;
                                      (II) contaminated cuttings,
                                    seedlings, or tissue culture;
                                    or
                                      (III) Federal or State
                                    quarantine or destruction
                                    orders associated with the
                                    contaminated items described in
                                    subclause (II);
                              (ii) consider other causes of loss
                            applicable to a controlled environment,
                            such as a loss of electricity due to
                            weather;
                              (iii) consider appropriate best
                            practices to minimize the risk of loss;
                              (iv) consider whether to provide
                            coverage for various types of plants
                            under 1 policy or to provide coverage
                            for 1 species or type of plant per
                            policy;
                              (v) have streamlined reporting and
                            paperwork requirements that take into
                            account short propagation schedules,
                            variable crop years, and the variety of
                            plants that may be produced in a single
                            facility; and
                              (vi) provide protection for revenue
                            losses.
                      (C) Report.--Not later than 2 years after the
                    date of enactment of the Agriculture
                    Improvement Act of 2018, the Corporation 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--
                              (i) the results of the research and
                            development carried out under
                            subparagraphs (A)(i) and (B); and
                              (ii) any recommendations with respect
                            to those results.
              (18) Local foods.--
                      (A) In general.--
                              (i) Feasibility study.--The
                            Corporation shall carry out a study to
                            determine the feasibility of, or offer
                            to enter into 1 or more contracts with
                            1 or more qualified persons to carry
                            out a study to determine the
                            feasibility of, a policy to insure
                            production--
                                      (I) of floriculture, fruits,
                                    vegetables, poultry, livestock,
                                    or the products of
                                    floriculture, fruits,
                                    vegetables, poultry, or
                                    livestock; and
                                      (II) that is targeted toward
                                    local consumers and markets.
                              (ii) Availability of policy.--
                            Notwithstanding the last sentence of
                            section 508(a)(1), and section
                            508(a)(2), the Corporation shall make
                            available a policy described in clause
                            (i) if--
                                      (I) the results of the
                                    feasibility study under clause
                                    (i) are viable; and
                                      (II) the requirements of
                                    section 508(h) are met.
                      (B) Feasibility study described.--The
                    feasibility study described in subparagraph
                    (A)(i) shall evaluate the effectiveness of
                    policies for production targeted toward local
                    consumers and markets, including policies
                    that--
                              (i) consider small-scale production
                            in various areas, including urban,
                            suburban, and rural areas;
                              (ii) consider a variety of marketing
                            strategies;
                              (iii) allow for production in soil
                            and in alternative systems such as
                            vertical systems, greenhouses,
                            rooftops, or hydroponic systems;
                              (iv) consider the price premium when
                            accounting for production or revenue
                            losses;
                              (v) consider whether to provide
                            coverage--
                                      (I) for various types of
                                    production under 1 policy; and
                                      (II) for 1 species or type of
                                    plant per policy; and
                              (vi) have streamlined reporting and
                            paperwork requirements.
                      (C) Report.--Not later than 2 years after the
                    date of enactment of the Agriculture
                    Improvement Act of 2018, the Corporation 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--
                              (i) examines whether a version of
                            existing policies such as the whole-
                            farm revenue protection insurance plan
                            may be tailored to provide improved
                            coverage for producers of local foods;
                              (ii) describes the results of the
                            feasibility study carried out under
                            subparagraph (A)(i); and
                              (iii) includes any recommendations
                            with respect to those results.
              (19) High-risk, highly productive batture land
            policy.--
                      (A) In general.--
                              (i) Research and development.--The
                            Corporation shall carry out research
                            and development, or offer to enter into
                            1 or more contracts with 1 or more
                            qualified persons to carry out research
                            and development, regarding a policy to
                            insure producers of corn, cotton, and
                            soybeans--
                                      (I) with operations on highly
                                    productive batture land within
                                    the Lower Mississippi River
                                    Valley;
                                      (II) that have a history of
                                    production of not less than 5
                                    years; and
                                      (III) that have been impacted
                                    by more frequent flooding over
                                    the past 10 years due to
                                    sedimentation or federally
                                    constructed engineering
                                    improvements.
                              (ii) Availability of policy.--
                            Notwithstanding the last sentence of
                            section 508(a)(1), and section
                            508(a)(2), the Corporation shall make a
                            policy described in clause (i)
                            available if the requirements of
                            section 508(h) are met.
                      (B) Research and development described.--
                    Research and development described in
                    subparagraph (A)(i) shall evaluate the
                    feasibility of less cost-prohibitive policies
                    for batture-land producers in high risk areas,
                    including policies that--
                              (i) consider premium rate
                            adjustments;
                              (ii) consider automatic yield
                            exclusion for consecutive-year losses;
                            and
                              (iii) allow for flexibility of final
                            plant dates and prevent plant
                            regulations.
                      (C) Report.--Not later than 2 years after the
                    date of enactment of the Agriculture
                    Improvement Act of 2018, the Corporation 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--
                              (i) examines whether a version of
                            existing policies may be tailored to
                            provide improved coverage for batture-
                            land producers;
                              (ii) describes the results of the
                            research and development carried out
                            under subparagraphs (A) and (B); and
                              (iii) includes any recommendations
                            with respect to those results.
              (20) Expansion of revenue policies.--
                      (A) In general.--The Corporation shall carry
                    out research and development, or offer to enter
                    into 1 or more contracts with 1 or more
                    qualified persons to carry out research and
                    development, to expand the availability of
                    policies that provide coverage against losses
                    of revenue for--
                              (i) oilseeds, including camelina,
                            carinata, and pennycress;
                              (ii) alfalfa;
                              (iii) pulse crops (including dry
                            edible beans);
                              (iv) sugarbeets;
                              (v) sugarcane;
                              (vi) blueberries; and
                              (vii) other crops for which only
                            individual yield-based insurance
                            policies are available.
                      (B) Availability of policy.--Notwithstanding
                    the last sentence of section 508(a)(1), and
                    section 508(a)(2), the Corporation shall make a
                    policy described in subparagraph (A) available
                    if the requirements of section 508(h) are met.
                      (C) Determination of projected price.--In
                    developing a policy described in subparagraph
                    (A) the Corporation may utilize alternative
                    methods of determining a projected price for a
                    crop, including the correlation of actual
                    prices received for such crop to the futures
                    markets prices of other commodities.
                      (D) Pricing library.--In developing a policy
                    described in subparagraph (A) the Corporation
                    shall determine the feasibility of creating a
                    pricing library for agents and approved
                    insurance providers using data from alternative
                    sources, as determined by the Secretary.
                      (E) Discount factor.--For purposes of
                    developing a policy described in subparagraph
                    (A), the Corporation shall determine the
                    feasibility of--
                              (i) establishing a State or regional
                            discount factor as an endorsement
                            policy to provide coverage against
                            losses of revenue due to quality
                            discounts in soybeans; and
                              (ii) an alternative to applying the
                            term ``zero-market value'' in the case
                            of an available salvage market.
                      (F) Report.--Not later than 18 months after
                    the date of enactment of this paragraph, the
                    Corporation 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--
                              (i) the crops for which research and
                            development has been carried out under
                            subparagraph (A);
                              (ii) the results of the research and
                            development carried out under
                            subparagraph (A);
                              (iii) any recommendations with
                            respect to those results; and
                              (iv) additional crops for which
                            research and development under this
                            paragraph is planned to be carried out.
              (21) Wine grape losses due to smoke exposure.--
                      (A) In general.--Not later than 1 year after
                    the date of the enactment of this paragraph,
                    the Corporation shall carry out research and
                    development, or offer to enter into 1 or more
                    contracts with 1 or more qualified persons to
                    carry out research and development, regarding a
                    policy to insure wine grapes (including wine
                    grapes produced in the States of California,
                    Oregon, and Washington) against losses due to
                    wildfire smoke exposure.
                      (B) Availability of policy.--Notwithstanding
                    the last sentence of section 508(a)(1), and
                    section 508(a)(2), not later than 18 months
                    after the date of the enactment of this
                    paragraph, the Corporation shall make available
                    a policy described in subparagraph (A) if the
                    requirements of section 508(h) are met.
                      (C) Report.--Not later than 2 years after the
                    date of enactment of this paragraph, the
                    Corporation shall submit to the Committees on
                    Appropriations and Agriculture of the House of
                    Representatives and the Committees on
                    Appropriations and Agriculture, Nutrition, and
                    Forestry of the Senate a report that includes--
                              (i) the results of the research
                            carried out under subparagraph (A);
                              (ii) a description of the policies
                            made available under this paragraph;
                            and
                              (iii) the feasibility of a product
                            that allows producers of wine grapes to
                            claim an indemnity through post-
                            harvest, post-vinification testing, if
                            such testing demonstrates smoke damage
                            that was not detectable prior to
                            harvest.
              (22) Mushrooms.--
                      (A) In general.--The Corporation shall carry
                    out research and development, or offer to enter
                    into 1 or more contracts with 1 or more
                    qualified persons to carry out research and
                    development, regarding a policy to insure--
                              (i) the production of mushroom
                            growing media; and
                              (ii) the production of mushrooms.
                      (B) Availability of policy.--Notwithstanding
                    the second sentence of section 508(a)(1), and
                    section 508(a)(2), the Corporation shall make a
                    policy described in subparagraph (A) available
                    if the requirements of section 508(h) are met.
                      (C) Research and development.--Research and
                    development described in subparagraph (A) shall
                    evaluate the effectiveness of policies
                    described in that subparagraph, including
                    policies that--
                              (i) are based on the risk of--
                                      (I) pests, including mushroom
                                    phorid flies and sciarid flies;
                                      (II) fungal pathogens; and
                                      (III) viral pathogens;
                              (ii) consider other causes of loss
                            applicable to mushroom compost and
                            mushroom production, such as--
                                      (I) loss of electricity due
                                    to weather; and
                                      (II) loss of growing media
                                    due to excessive 5-year, 10-
                                    year, or 20-year rainfall
                                    events;
                              (iii) consider appropriate best
                            practices to minimize the risk of loss;
                              (iv) consider whether to provide
                            coverage for mushrooms under 1 policy
                            or to provide coverage for various
                            phases of production;
                              (v) have streamlined reporting and
                            paperwork requirements that take into
                            account short propagation schedules,
                            variable crop years, and the variety of
                            mushrooms that may be produced in a
                            single facility; and
                              (vi) provide protection for revenue
                            losses.
                      (D) Report.--Not later than 2 years after the
                    date of enactment of this paragraph, the
                    Corporation 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--
                              (i) the results of the research and
                            development carried out under
                            subparagraph (A); and
                              (ii) any recommendations with respect
                            to those results.
              (23) Standalone policy for hurricanes and tropical
            storms.--
                      (A) In general.--The Corporation shall carry
                    out research and development, or offer to enter
                    into 1 or more contracts with 1 or more
                    qualified persons to conduct a study to
                    determine the feasibility of offering insurance
                    against tropical storms and hurricanes made
                    available regardless of an underlying crop
                    insurance policy (or lack thereof).
                      (B) Report.--Not later than 1 year after the
                    date of enactment of this paragraph, the
                    Corporation 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 conducted under
                    subparagraph (A).
              (24) Frost or cold weather insurance.--
                      (A) In general.--The Corporation shall carry
                    out research and development, or offer to enter
                    into 1 or more contracts with 1 or more
                    qualified persons to carry out research and
                    development, regarding an index-based policy to
                    insure crops (including table grapes, wine
                    grapes, juice grapes, tomatoes, peppers,
                    sugarcane, strawberries, melons, citrus,
                    peaches, blueberries, and any other crop) on a
                    nationally available basis against losses due
                    to a frost or cold weather event.
                      (B) Research and development.--Research and
                    development under subparagraph (A) shall--
                              (i) evaluate the effectiveness of
                            risk management tools, such as the use
                            of an index, with respect to low
                            frequency and catastrophic loss weather
                            events; and
                              (ii) result in a policy that provides
                            protection for at least 1 of the
                            following:
                                      (I) Production loss.
                                      (II) Revenue loss.
                      (C) Report.--Not later than 1 year after the
                    date of enactment of this paragraph, the
                    Corporation 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--
                              (i) the results of the research and
                            development carried out under
                            subparagraph (A); and
                              (ii) any recommendations with respect
                            to those results.
              (25) Double cropping and rotational cropping of
            certain oilseed crops.--
                      (A) Definition of covered oilseed crops.--In
                    this paragraph, the term ``covered oilseed
                    crops'' means rapeseed, canola, camelina, and
                    other oilseed crops, as determined by the
                    Corporation.
                      (B) Research and development.--The
                    Corporation shall carry out research and
                    development, or offer to enter into 1 or more
                    contracts with 1 or more qualified persons to
                    carry out research and development, with
                    respect to insurance policies for covered
                    oilseed crops under double cropping and
                    rotational cropping practices.
                      (C) Requirements.--The research and
                    development carried out pursuant to
                    subparagraph (B) shall be conducted in
                    consultation with stakeholders to evaluate--
                              (i) the factors impacting
                            availability and cost of crop insurance
                            when incorporating covered oilseed
                            crops into double cropping and
                            rotational cropping policies; and
                              (ii) the potential risk management
                            benefits associated with incorporating
                            covered oilseed crops into double
                            cropping and rotational cropping
                            policies, specifically with respect to
                            winter-planted covered oilseed crops,
                            including risk management benefits to
                            soil health, biodiversity, and the
                            profitability of farming operations.
                      (D) Emphasis.--In awarding contracts under
                    subparagraph (B), the Corporation may give
                    priority to awarding contracts to qualified
                    persons that--
                              (i) have previous research experience
                            with covered oilseed crops; and
                              (ii) have access to a facility with
                            the capacity to carry out the
                            applicable research.
                      (E) Report.--Not later than 13 months after
                    the date of enactment of this paragraph, the
                    Corporation 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--
                              (i) the results of the research and
                            development carried out under
                            subparagraph (B); and
                              (ii) any recommendations with respect
                            to those results.
              (26) Harvest incentives.--
                      (A) In general.--Not later than 1 year after
                    the date of the enactment of this paragraph,
                    the Corporation shall carry out research and
                    development, or offer to enter into 1 or more
                    contracts with 1 or more qualified persons to
                    carry out research and development, regarding
                    harvest incentives for policies that provide
                    coverage against losses of revenue.
                      (B) Availability of policy.--Notwithstanding
                    the last sentence of section 508(a)(1), and
                    section 508(a)(2), not later than 24 months
                    after the date of the enactment of this
                    paragraph, the Corporation shall make available
                    a policy described in subparagraph (A) if the
                    requirements of section 508(h) are met.
                      (C) Report.--Not later than 1 year after the
                    date of enactment of this paragraph, the
                    Corporation shall submit to the Committees on
                    Appropriations and Agriculture of the House of
                    Representatives and the Committees on
                    Appropriations and Agriculture, Nutrition, and
                    Forestry of the Senate a report that includes--
                              (i) the results of the research
                            carried out under subparagraph (A); and
                              (ii) a description of the policies
                            made available under this paragraph.
              (27) Prevented planting.--
                      (A) In general.--Not later than 1 year after
                    the date of the enactment of this paragraph,
                    the Corporation shall carry out research and
                    development, or offer to enter into 1 or more
                    contracts with 1 or more qualified persons to
                    carry out research and development, regarding
                    prevented planting coverage for insurance
                    policies for specialty crops that are not
                    planted on a perennial basis.
                      (B) Report.--Not later than 18 months after
                    the date of the enactment of this paragraph,
                    the Corporation 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
                    includes--
                              (i) the results of the research
                            carried out under subparagraph (A); and
                              (ii) any recommendations with respect
                            to those results.
              (28) Policy for swine producers for catastrophic
            events.--
                      (A) In general.--For purposes of updating any
                    conclusions contained in the final report for
                    the study on swine catastrophic disease
                    published by the Risk Management Agency in
                    2015, the Corporation shall carry out research
                    and development, or offer to enter into 1 or
                    more contracts with 1 or more qualified persons
                    to carry out research and development,
                    regarding a policy to insure swine producers
                    with respect to financial losses due to a
                    catastrophic event.
                      (B) Report.--Not later than 1 year after the
                    date of the enactment of this paragraph, the
                    Corporation 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 research and development
                    carried out under subparagraph (A).
      (d) Partnerships for Risk Management Development and
    Implementation.--
              (1) Purpose.--The purpose of this subsection is to
            authorize the Corporation to enter into partnerships
            with public and private entities for the purpose of
            either--
                      (A) increasing the availability of loss
                    mitigation, financial, and other risk
                    management tools for producers, with a priority
                    given to risk management tools for producers of
                    agricultural commodities covered by section 196
                    of the Agricultural Market Transition Act (7
                    U.S.C. 7333), specialty crops, and underserved
                    agricultural commodities; or
                      (B) improving analysis tools and technology
                    regarding compliance or identifying and using
                    innovative compliance strategies.
              (2) Authority.--The Corporation may enter into
            partnerships with the National Institute of Food and
            Agriculture, the Agricultural Research Service, the
            National Oceanic Atmospheric Administration, and other
            appropriate public and private entities with
            demonstrated capabilities in developing and
            implementing risk management and marketing options for
            producers of specialty crops and underserved
            agricultural commodities.
              (3) Objectives.--The Corporation may enter into a
            partnership under paragraph (2)--
                      (A) to enhance the notice and timeliness of
                    notice of weather conditions that could
                    negatively affect crop yields, quality, and
                    final product use in order to allow producers
                    to take preventive actions to increase end
                    product profitability and marketability and to
                    reduce the possibility of crop insurance
                    claims;
                      (B) to develop a multifaceted approach to
                    pest management and fertilization to decrease
                    inputs, decrease environmental exposure, and
                    increase application efficiency;
                      (C) to develop or improve techniques for
                    planning, breeding, planting, growing,
                    maintaining, harvesting, storing, shipping, and
                    marketing that will address quality and
                    quantity challenges associated with year-to-
                    year and regional variations;
                      (D) to clarify labor requirements and assist
                    producers in complying with requirements to
                    better meet the physically intense and time-
                    compressed planting, tending, and harvesting
                    requirements associated with the production of
                    specialty crops and underserved agricultural
                    commodities;
                      (E) to provide assistance to State foresters
                    or equivalent officials for the prescribed use
                    of burning on private forest land for the
                    prevention, control, and suppression of fire;
                      (F) to provide producers with training and
                    informational opportunities so that the
                    producers will be better able to use financial
                    management, farm financial benchmarking, crop
                    insurance, marketing contracts, and other
                    existing and emerging risk management tools;
                      (G) to improve analysis tools and technology
                    regarding compliance or identifying and using
                    innovative compliance strategies; and
                      (H) to develop other risk management tools to
                    further increase economic and production
                    stability.
      (e) Funding.--
              (1) Reimbursements.--Of the amounts made available
            from the insurance fund established under section
            516(c), the Corporation may use to provide
            reimbursements under subsection (b) not more than
            $7,500,000 for fiscal year 2008 and each subsequent
            fiscal year.
              (2) Contracting.--
                      (A) Conducting and contracting for research
                    and development.--Of the amounts made available
                    from the insurance fund established under
                    section 516(c), the Corporation may use to
                    conduct research and development and carry out
                    contracting and partnerships under subsections
                    (c) and (d) not more than--
                              (i) $12,500,000 for each of fiscal
                            years 2008 through 2018; and
                              (ii) $8,000,000 for fiscal year 2019
                            and each fiscal year thereafter.
                      (B) Underserved states.--Of the amount made
                    available under subparagraph (A) for a fiscal
                    year, the Corporation shall use not more than
                    $5,000,000 for the fiscal year to conduct
                    research and development and carry out
                    contracting for research and development to
                    carry out the purpose described in subsection
                    (c)(1)(A).
              (3) Unused funding.--If the Corporation determines
            that the amount available under this section for a
            fiscal year is not needed for such purposes, the
            Corporation may use--
                      (A) not more than $5,000,000 for each fiscal
                    year to improve program integrity, including
                    by--
                              (i) increasing compliance-related
                            training;
                              (ii) improving analysis tools and
                            technology regarding compliance;
                              (iii) use of information technology,
                            as determined by the Corporation; and
                              (iv) identifying and using innovative
                            compliance strategies; and
                      (B) any excess amounts to carry out other
                    activities authorized under this section.

               *       *       *       *       *       *       *

                                  ----------

                          ANIMAL HEALTH PROTECTION ACT

                     Subtitle E--Animal Health Protection

               *       *       *       *       *       *       *

    SEC. 10404A. IMPORTATION OF LIVE DOGS.

      (a) Definitions.--In this section:
              (1) Compensation.--The term ``compensation'' means
            any act, consideration, or thing of value received by a
            person directly, including cash or noncash benefits,
            cost-avoidance, obtaining positive or avoiding negative
            publicity, an exchange of services, or maintaining a
            license issued under any local, State, or Federal
            government authority.
              (2) Importer.--The term ``importer'' means any person
            who transports or causes the transportation of a dog
            into the United States from a foreign country.
              (3) Import transporter.--The term ``import
            transporter'' means any person or entity that--
                      (A) receives an imported dog from any
                    importer, dealer, research facility, exhibitor,
                    operator of an auction sale, or department,
                    agency, or instrumentality of the United States
                    or of any State or local government; and
                      (B) receives compensation for moving such dog
                    in commerce.
              (4) Transfer.--The term ``transfer'' means a change
            of ownership or control of an imported dog to another
            person, including by sale, adoption, exchange, or
            donation.
      (b) Requirements.--
              (1) In general.--Except as provided in paragraph (2),
            no person shall import a dog into the United States
            unless prior to transport to the United States, the
            Secretary receives electronic documentation necessary,
            as determined by the Secretary, to demonstrate that the
            dog--
                      (A) is in good health;
                      (B) has received all necessary vaccinations
                    and internal and external parasite treatment,
                    and demonstrated negative test results, as
                    required by the Secretary and evidenced by a
                    certificate that--
                              (i) is issued by a licensed
                            veterinarian accredited by a competent
                            veterinary authority recognized by the
                            Secretary; and
                              (ii) is endorsed by that authority in
                            a manner representing that the
                            veterinarian issuing the certificate
                            was authorized to do so;
                      (C) is officially identified by a permanent
                    method approved by the Secretary; and
                      (D) in the case that the dog is intended for
                    transfer--
                              (i) is at least 6 months old; and
                              (ii) is accompanied by an import
                            permit issued by the Secretary under
                            this Act.
              (2) Exceptions.--The Secretary, by regulation, shall
            provide an exception to any requirement under this Act
            in any case in which a dog is imported for purposes of
            transfer--
                      (A) as a personal pet of United States origin
                    returning to the United States;
                      (B) as a United States military working dog
                    or contracted working dog supporting a military
                    mission or tasking;
                      (C) for research purposes;
                      (D) for veterinary treatment which is paid
                    for by the importer, subject to the condition
                    that the dog--
                              (i) is taken directly to a veterinary
                            facility for treatment with appropriate
                            quarantine until the dog meets the
                            criteria described in paragraph (1);
                            and
                              (ii) is then exported to its country
                            of origin; or
                      (E) in the case of a dog that is less than 6
                    months old, for lawful importation into the
                    State of Hawaii from the British Isles,
                    Australia, Guam, or New Zealand in compliance
                    with the regulations of the State of Hawaii and
                    the other requirements of this section, if the
                    dog is not transported out of the State of
                    Hawaii for transfer at less than 6 months of
                    age.
      (c) Implementation and Regulations.--Not later than 18 months
    after the date of enactment of the Farm, Food, and National
    Security Act of 2026, the Secretary, in consultation with the
    Secretary of Health and Human Services, the Secretary of
    Commerce, the Secretary of Homeland Security, and the Secretary
    of Transportation, shall promulgate such regulations as the
    Secretary determines necessary to implement and enforce this
    section, including regulations--
              (1) to facilitate electronic submission and
            interagency sharing of all documentation required prior
            to the importation of a dog into the United States
            under subsection (b)(1);
              (2) to establish any necessary post-arrival
            verification processes for imported dogs;
              (3) to ensure the denial of entry into the United
            States of any dog attempted to be imported into the
            United States in violation of subsection (b)(1);
              (4) to provide that each importer, import
            transporter, intermediate handler, or carrier receiving
            a certificate of veterinary inspection required under
            this section shall submit a copy of the certificate to
            the Secretary, who shall, upon receipt--
                      (A) record and maintain the information in a
                    centralized database; and
                      (B) upon request by a State veterinarian,
                    share the information with such State
                    veterinarian not later than 3 days after such
                    request is received by the Secretary;
              (5) to require the Secretary to annually aggregate
            and publicly report the data submitted under paragraph
            (4), including information on the countries of origin
            of the imported dogs and the purposes for the
            importation of such dogs; and
              (6) to determine and establish such fees for the
            verification of documentation and issuance of permits
            required under subsection (b)(1) as may be necessary to
            fund the implementation and enforcement of this
            section.
      (d) Rule of Construction.--Nothing in subsection (c)(5) shall
    be construed as limiting the availability of funding made
    available under section 10417 to carry out this section.
      (e) Enforcement.--
              (1) Authority.--The Secretary shall have the
            authority granted under section 10414 to enforce this
            section.
              (2) Penalties.--An importer or import transporter
            that fails to comply with this section shall--
                      (A) be subject to penalties under section
                    10414; and
                      (B) provide, as the Secretary may determine,
                    at the expense of the importer or import
                    transporter, for--
                              (i) the care (including appropriate
                            veterinary care), forfeiture,
                            quarantine, and removal from the United
                            States of each applicable dog; and
                              (ii) the return of each applicable
                            dog to its place of export, with due
                            care for the welfare of each applicable
                            dog.

    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) Failures 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.
      (d) Engagement With Key Export Markets.--To reduce the impact
    of animal disease outbreaks on United States exports, the
    Secretary, acting through the Administrator of the Animal and
    Plant Health Inspection Service, the Under Secretary of
    Agriculture for Trade and Foreign Agricultural Affairs, and the
    Administrator of the Food Safety and Inspection Service, in
    consultation with the United States Trade Representative, is
    authorized to negotiate in advance, to the extent practicable,
    regionalization, zoning, compartmentalization, and other
    agreements regarding outbreaks of known animal disease threats
    of trade significance with the governments of countries with
    export markets for livestock animals or animal products from
    the United States.
      [(d)] (e) Authorization of Appropriations.--
              (1) In general.--There is authorized to be
            appropriated--
                      (A) $1,500,000 for each of fiscal years 2008
                    through 2018 to carry out section 11010 of the
                    Food, Conservation, and Energy Act of 2008; and
                      (B) such sums as may be necessary for each of
                    fiscal years 2008 through 2018 to carry out
                    this section.
              (2) Availability.--Funds appropriated under paragraph
            (1) shall remain available until expended.

               *       *       *       *       *       *       *

    SEC. 10409A. ANIMAL DISEASE PREVENTION AND MANAGEMENT.

      (a) National Animal Health Laboratory Network.--
              (1) Definition of eligible laboratory.--In this
            subsection, the term ``eligible laboratory'' means a
            diagnostic laboratory that meets specific criteria
            developed by the Secretary, in consultation with State
            animal health officials, State veterinary diagnostic
            laboratories, and veterinary diagnostic laboratories at
            institutions of higher education (as defined in section
            101 of the Higher Education Act of 1965 (20 U.S.C.
            1001)).
              (2) In general.--The Secretary, in consultation with
            State veterinarians, shall offer to enter into
            contracts, grants, cooperative agreements, or other
            legal instruments with eligible laboratories for any of
            the following purposes:
                      (A) To enhance the capability of the
                    Secretary to respond in a timely manner to
                    emerging or existing bioterrorist threats to
                    animal health.
                      (B) To provide the capacity and capability
                    for standardized--
                              (i) test procedures, reference
                            materials, and equipment;
                              (ii) laboratory biosafety and
                            biosecurity levels;
                              (iii) quality management system
                            requirements;
                              (iv) interconnected electronic
                            reporting and transmission of data; and
                              (v) evaluation for emergency
                            preparedness.
                      (C) To coordinate the development,
                    implementation, and enhancement of national
                    veterinary diagnostic laboratory capabilities,
                    with special emphasis on surveillance planning
                    and vulnerability analysis, technology
                    development and validation, training, and
                    outreach.
              (3) Priority.--To the extent practicable and to the
            extent capacity and specialized expertise may be
            necessary, the Secretary shall give priority to
            existing Federal facilities, State facilities, and
            facilities at institutions of higher education.
      (b) National Animal Disease Preparedness and Response
    Program.--
              (1) Program required.--The Secretary shall establish
            a program, to be known as the National Animal Disease
            Preparedness and Response Program (referred to in this
            section as ``the Program''), to address the increasing
            risk of the introduction and spread within the United
            States of animal pests and diseases affecting the
            economic interests of the livestock and related
            industries of the United States, including the
            maintenance and expansion of export markets.
              (2) Program activities.--Activities under the Program
            shall include, to the extent practicable, the
            following:
                      (A) Enhancing animal pest and disease
                    analysis and surveillance.
                      (B) Expanding outreach and education.
                      (C) Targeting domestic inspection activities
                    at vulnerable points in the safeguarding
                    continuum.
                      (D) Enhancing and strengthening threat
                    identification technology.
                      (E) Improving biosecurity.
                      (F) Enhancing emergency preparedness and
                    response capabilities, [including training
                    additional emergency response personnel.]
                    including--
                              (i) training additional emergency
                            response personnel; and
                              (ii) improving animal disease
                            traceability.
                      (G) Conducting technology development to
                    enhance electronic sharing of animal health
                    data for risk analysis between State and
                    Federal animal health officials.
                      (H) Enhancing the development and
                    effectiveness of animal health technologies to
                    treat and prevent animal disease, including--
                              (i) veterinary biologics and
                            diagnostics;
                              (ii) animal drugs for minor uses and
                            minor species;
                              (iii) animal medical devices; and
                              (iv) emerging veterinary
                            countermeasures.
                      (I) Such other activities as determined
                    appropriate by the Secretary, in consultation
                    with eligible entities specified in paragraph
                    (3), including activities approved by the
                    Secretary as of the date of the enactment of
                    the Farm, Food, and National Security Act of
                    2026.
              (3) Eligible entities.--To carry out the Program, the
            Secretary shall offer to enter into cooperative
            agreements or other legal instruments, as authorized
            under section 10413 (referred to in this section as
            ``agreements'') with eligible entities, to be selected
            by the Secretary, which may include any of the
            following entities, either individually or in
            combination:
                      (A) A State department of agriculture.
                      (B) The office of the chief animal health
                    official of a State.
                      (C) An entity eligible to receive funds under
                    a capacity and infrastructure program (as
                    defined in section 251(f)(1)(C) of the
                    Department of Agriculture Reorganization Act of
                    1994 (7 U.S.C. 6971(f)(1)(C))).
                      (D) A college of veterinary medicine,
                    including a veterinary emergency team at such
                    college.
                      (E) A State or national livestock producer
                    organization with direct and significant
                    economic interest in livestock production.
                      (F) A State emergency agency.
                      (G) A State, national, allied, or regional
                    veterinary organization or specialty board
                    recognized by the American Veterinary Medical
                    Association.
                      (H) An Indian Tribe.
                      (I) A Federal agency.
              (4) Special funding considerations.--In entering into
            agreements under this subsection, the Secretary shall
            give priority to applications submitted by--
                      (A) a State department of agriculture or an
                    office of the chief animal health official of a
                    State; or
                      (B) an eligible entity that will carry out
                    program activities in a State or region in
                    which--
                              (i) an animal pest or disease is a
                            Federal concern; or
                              (ii) the Secretary determines a
                            potential exists for the spread of an
                            animal pest or disease after taking
                            into consideration--
                                      (I) the agricultural
                                    industries in the State or
                                    region;
                                      (II) factors contributing to
                                    animal pest or disease in the
                                    State or region, such as the
                                    climate, natural resources, and
                                    geography of, and native and
                                    exotic wildlife species and
                                    other disease vectors in, the
                                    State or region; and
                                      (III) the movement of animals
                                    in the State or region.
              (5) Consultation.--For purposes of setting priorities
            under this subsection, the Secretary shall consult with
            eligible entities specified in paragraph (3). The
            Federal Advisory Committee Act (5 U.S.C. App.) shall
            not apply to consultation carried out under this
            paragraph.
              (6) Application.--
                      (A) In general.--An eligible entity specified
                    in paragraph (3) seeking to enter into an
                    agreement under the Program shall submit to the
                    Secretary an application containing such
                    information as the Secretary may require.
                      (B) Notification.--The Secretary shall notify
                    each applicant of--
                              (i) the requirements to be imposed on
                            the eligible entity that is the
                            recipient of funds under the Program
                            for auditing of, and reporting on, the
                            use of such funds; and
                              (ii) the criteria to be used to
                            ensure activities supported using such
                            funds are based on sound scientific
                            data or thorough risk assessments.
                      (C) Non-federal contributions.--When deciding
                    whether to enter into an agreement under the
                    Program with an eligible entity described in
                    paragraph (3), the Secretary--
                              (i) may take into consideration an
                            eligible entity's ability to contribute
                            non-Federal funds to carry out such an
                            agreement; and
                              (ii) shall not require such an
                            eligible entity to make such a
                            contribution as a condition to enter
                            into an agreement.
              (7) Use of funds.--
                      (A) Use consistent with terms of cooperative
                    agreement.--The recipient of funds under the
                    Program shall use the funds for the purposes
                    and in the manner provided in the agreement
                    under which the funds are provided.
                      (B) Sub-agreement.--Nothing in this section
                    prevents an eligible entity from using funds
                    received under the Program to enter into sub-
                    agreements with another eligible entity or with
                    a political subdivision of a State that has
                    legal responsibilities relating to animal
                    disease prevention, surveillance, or rapid
                    response.
              (8) Reporting requirement.--Not later than 90 days
            after the date of completion of an activity conducted
            using funds provided under the Program, the recipient
            of such funds shall submit to the Secretary a report
            that describes the purposes and results of the
            activities.
      (c) National Animal Vaccine Bank.--
              (1) Establishment.--The Secretary shall establish a
            national animal vaccine and veterinary countermeasures
            bank (to be known as the National Animal Vaccine and
            Veterinary Countermeasures Bank and referred to in this
            subsection as the ``Vaccine Bank'') to benefit the
            domestic interests of the United States.
              (2) Elements of vaccine bank.--Through the Vaccine
            Bank, the Secretary shall--
                      (A) maintain sufficient quantities of
                    veterinary countermeasures to appropriately and
                    rapidly respond to the most damaging animal
                    diseases affecting or with potential to affect
                    human health or the economy of the United
                    States; and
                      (B) leverage, when appropriate, the
                    mechanisms and infrastructure that have been
                    developed for the management, storage, and
                    distribution of the National Veterinary
                    Stockpile.
              (3) Priority for response to foot and mouth
            disease.--The Secretary shall prioritize the
            acquisition and maintenance of sufficient quantities of
            foot and mouth disease vaccine and accompanying
            diagnostic products for the Vaccine Bank. As part of
            such prioritization, the Secretary may offer to enter
            into one or more contracts with one or more entities
            that are capable of producing foot and mouth disease
            vaccine and that have surge production capacity of the
            vaccine.
      (d) Funding.--
              (1) Mandatory funding.--
                      (A) Fiscal years 2019 through 2022.--Of the
                    funds of the Commodity Credit Corporation, the
                    Secretary shall make available to carry out
                    this section $120,000,000 for the period of
                    fiscal years 2019 through 2022, of which not
                    less than $5,000,000 shall be made available
                    for each of those fiscal years to carry out
                    subsection (b).
                      (B) Fiscal years 2023 through 2025.--Of the
                    funds of the Commodity Credit Corporation, the
                    Secretary shall make available to carry out
                    this section $30,000,000 for each of fiscal
                    years 2023 through 2025, of which not less than
                    $18,000,000 shall be made available for each of
                    those fiscal years to carry out subsection (b).
                      (C) Fiscal years 2026 through 2030.--Of the
                    funds of the Commodity Credit Corporation, the
                    Secretary shall make available to carry out
                    this section $233,000,000 for each of fiscal
                    years 2026 through 2030, of which--
                              (i) not less than $10,000,000 shall
                            be made available for each such fiscal
                            year to carry out subsection (a);
                              (ii) not less than $70,000,000 shall
                            be made available for each such fiscal
                            year to carry out subsection (b); and
                              (iii) not less than $153,000,000
                            shall be made available for each such
                            fiscal year to carry out subsection
                            (c).
                      (D) Subsequent fiscal years.--Of the funds of
                    the Commodity Credit Corporation, the Secretary
                    shall make available to carry out this section
                    $75,000,000 for fiscal year 2031 and each
                    fiscal year thereafter, of which not less than
                    $45,000,000 shall be made available for each of
                    those fiscal years to carry out subsection (b).
              (2) Authorization of appropriations.--
                      (A) National animal health laboratory
                    network.--In addition to the funds made
                    available under paragraph (1), there is
                    authorized to be appropriated $30,000,000 for
                    each of fiscal years [2019 through 2023] 2027
                    through 2031 to carry out subsection (a).
                      (B) National animal disease preparedness and
                    response program; national animal vaccine and
                    veterinary countermeasures bank.--In addition
                    to the funds made available under paragraph
                    (1), there is authorized to be appropriated
                    such sums as are necessary for each of fiscal
                    years [2019 through 2023] 2027 through 2031 to
                    carry out subsections (b) and (c).
                      (C) Additionality.--The funds authorized for
                    appropriation under this paragraph are in
                    addition to any funds authorized or otherwise
                    made available under this section or section
                    10417.
              (3) Administrative costs.--
                      (A) Secretary.--Of the funds made available
                    under this section or section 10417 to carry
                    out the National Animal Health Laboratory
                    Network under subsection (a) and the National
                    Animal Disease Preparedness and Response
                    Program under subsection (b), not more than 4
                    percent may be retained by the Secretary to pay
                    administrative costs incurred by the Secretary.
                      (B) Eligible entities.--Of the funds made
                    available under this section or section 10417
                    to [carry out the National Animal Disease
                    Preparedness and Response Program under
                    subsection (b)] carry out the National Animal
                    Health Laboratory Network under subsection (a)
                    and the National Animal Disease Preparedness
                    and Response Program under subsection (b), not
                    more than [10 percent] 15 percent may be
                    retained by an eligible entity that receives
                    funds under any agreement entered into under
                    such subsection, including any sub-agreement
                    under paragraph (7)(B) of such subsection to
                    pay administrative costs incurred by the
                    eligible entity to carry out activities under
                    the Program.
              (4) Duration of availability.--Funds made available
            under this subsection, including any proceeds credited
            under paragraph (5), shall remain available until
            expended.
              (5) Proceeds from veterinary countermeasures sales.--
            Any proceeds of a sale of veterinary countermeasures
            from the Vaccine Bank shall be--
                      (A) deposited into the Treasury of the United
                    States; and
                      (B) credited to the account for the operation
                    of the Vaccine Bank to be made available for
                    expenditure without further appropriation.
              (6) Limitations on use of funds for certain
            purposes.--Funds made available under the National
            Animal Health Laboratory Network, the National Animal
            Disease Preparedness and Response Program, and the
            Vaccine Bank shall not be used for the construction of
            a new building or facility or the acquisition or
            expansion of an existing building or facility,
            including site grading and improvement and architect
            fees.
      (e) Availability and Purpose of Funding.--
              (1) In general.--Using the funds made available under
            subsection (d), the Secretary of Agriculture shall
            offer to enter into contracts, grants, cooperative
            agreements, or other legal instruments under
            subsections (a) through (c) during each of the fiscal
            years [2019 through 2023] 2027 through 2031.
              (2) Effect.--Nothing in paragraph (1) shall be
            construed to terminate a contract, grant, cooperative
            agreement, or other legal instrument entered into
            during the period specified in such paragraph.

               *       *       *       *       *       *       *

                                  ----------

                           BEAGLE BRIGADE ACT OF 2023

               *       *       *       *       *       *       *

    SEC. 4. ADDITIONAL TRAINING FACILITIES.

      (a) In General.--In addition to the Center established under
    section 2(a), the Secretary may--
              (1) establish other dog training facilities, which
            shall have the same duties as are specified in section
            2(b) for the Center; and
              (2) enter into a cooperative agreement with the
            department of agriculture of a State (or political
            subdivision thereof) to establish an off-site training
            program for the purpose of providing training and
            technical assistance in the training of dogs, as
            described in section 2(b).
      (b) Considerations.--When determining the need for additional
    training facilities under subsection (a), the Secretary shall
    consider--
              (1) the location of international ports of entry;
              (2) the volume of international passengers and cargo;
            and
              (3) regional agricultural production trends and
            associated pest and disease threats.

                                  ----------

                               ANIMAL WELFARE ACT

               *       *       *       *       *       *       *

      Sec. 2. In this Act:
      (a) The term ``person'' includes any individual, partnership,
    firm, joint stock company, corporation, association, trust,
    estate, or other legal entity.
      (b) The term ``Secretary'' means the Secretary of Agriculture
    of the United States or his representative who shall be an
    employee of the United States Department of Agriculture.
      (c) The term ``commerce'' means trade, traffic,
    transportation, or other commerce--
              (1) between a place in a State and any place outside
            of such State, or between points within the same State
            but through any place outside thereof, or within any
            territory, possession, or the District of Columbia;
              (2) which affects trade, traffic, transportation, or
            other commerce described in paragraph (1).
      (d) The term ``State'' means a State of the United States,
    the District of Columbia, the Commonwealth of Puerto Rico, the
    Virgin Islands, Guam, America Samoa, or any other territory or
    possession of the United States.
      (e) The term ``research facility'' means any school (except
    an elementary or secondary school), institution, organization,
    or person that uses or intends to use live animals in research,
    tests, or experiments, and that (1) purchases or transports
    live animals in commerce, or (2) receives funds under a grant,
    award, loan, or contract from a department, agency, or
    instrumentality of the United States for the purpose of
    carrying out research, tests, or experiments: Provided, That
    the Secretary may exempt, by regulation, any such school,
    institution, organization, or person that does not use or
    intend to use live dogs or cats, except those schools,
    institutions, organizations, or persons, which use substantial
    numbers (as determined by the Secretary) of live animals the
    principal function of which schools, institutions,
    organizations, or persons, is biomedical research or testing,
    when in the judgment of the Secretary, any such exemption does
    not vitiate the purpose of this Act.
      (f) The term ``dealer'' means any person who, in commerce,
    for compensation or profit, delivers for transportation, or
    transports, except as a carrier, buys, or sells, or negotiates
    the purchase or sale of, (1) any dog or other animal whether
    alive or dead for research, teaching, exhibition, or use as a
    pet, or (2) anydog for hunting, security, or breeding purposes.
    Such termdoes not include a retail pet store (other than a
    retailpet store which sells any animals to a research
    facility,an exhibitor, or another dealer).
      (g) The term ``animal'' means any live or dead dog, cat,
    monkey (nonhuman primate mammal), guinea pig, hamster, rabbit,
    hare, or such other warm-blooded animal, as the Secretary may
    determine is being used, or is intended for use, for research,
    testing, experimentation, or exhibition purposes, or as a pet;
    but such term 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) other farm animals, such
    as, but not limited to livestock or poultry, used or intended
    for use as food or fiber, or livestock or poultry used or
    intended for use for improving animal nutrition, breeding,
    management, or production efficiency, or for improving the
    quality of food or fiber. With respect to a dog, the term means
    all dogs including those used for hunting, security, or
    breeding purposes.
      (h) The term ``exhibitor'' means any person (public or
    private) exhibiting any animals, which were purchased in
    commerce or the intended distribution of which affects
    commerce, or will affect commerce, to the public for
    compensation, as determined by the Secretary, and such term
    includes carnivals, circuses, and zoos exhibiting such animals
    whether operated for profit or not; but such term excludes
    retail pet stores, organizations sponsoring and all persons
    participating in State and country fairs, livestock shows,
    rodeos, purebred dog and cat shows, and any other fairs or
    exhibitions intended to advance agricultural arts and sciences,
    as may be determined by the Secretary.
      (i) The term ``intermediate handler'' means any person
    including a department, agency, or instrumentality of the
    United States or of any State or local government (other than a
    dealer, research facility, exhibitor, any person excluded from
    the definition of a dealer, research facility, or exhibitor, an
    operator of an auction sale, or a carrier) who is engaged in
    any business in which he receives custody of animals in
    connection with their transportation in commerce.
      (j) The term ``carrier'' means the operator of any airline,
    railroad, motor carrier, shipping line, or other enterprise,
    which is engaged in the business of transporting any animals
    for hire.
      (k) The term ``Federal agency'' means an Executive agency as
    such term is defined in section 105 of title 5, United States
    Code, and with respect to any research facility means the
    agency from which the research facility receives a Federal
    award for the conduct of research, experimentation, or testing,
    involving the use of animals.
      (l) The term ``Federal award for the conduct of research,
    experimentation, or testing, involving the use of animals''
    means any mechanism (including a grant, award, loan, contract,
    or cooperative agreement) under which Federal funds are
    provided to support the conduct of such research.
      (m) The term ``quorum'' means a majority of the Committee
    members.
      (n) The term ``Committee'' means the Institutional Animal
    Committee established under section 13(b).
      (o) The term ``Federal research facility'' means each
    department, agency, or instrumentality of the United States
    which uses live animals for research or experimentation.

               *       *       *       *       *       *       *

      Sec.  13. (a)(1) The Secretary shall promulgate standards to
    govern the humane handling, care, treatment, and transportation
    of animals by dealers, research facilities, and exhibitors.
      (2) The standards described in paragraph (1) shall include
    minimum requirements--
              (A) for handling, housing, feeding, watering,
            sanitation, ventilation, shelter from extremes of
            weather and temperatures, adequate veterinary care
            (which shall include visual dental examinations,
            whenever practicable), and separation by species where
            the Secretary finds necessary for humane handling,
            care, or treatment of animals; and
              (B) for exercise of dogs, as determined by an
            attending veterinarian in accordance with general
            standards promulgated by the Secretary, and for a
            physical environment adequate to promote the
            psychological well-being of primates.
      (3) In addition to the requirements under paragraph (2), the
    standards described in paragraph (1) shall, with respect to
    animals in research facilities, include requirements--
              (A) for animal care, treatment, and practices in
            experimental procedures to ensure that animal pain and
            distress are minimized, including adequate veterinary
            care with the appropriate use of anesthetic, analgesic,
            tranquilizing drugs, or euthanasia;
              (B) that the principal investigator considers
            alternatives to any procedure likely to produce pain to
            or distress in an experimental animal;
              (C) in any practice which could cause pain to
            animals--
                      (i) that a doctor of veterinary medicine is
                    consulted in the planning of such procedures;
                      (ii) for the use of tranquilizers,
                    analgesics, and anesthetics;
                      (iii) for pre-surgical and post-surgical care
                    by laboratory workers, in accordance with
                    established veterinary medical and nursing
                    procedures;
                      (iv) against the use of paralytics without
                    anesthesia; and
                      (v) that the withholding of tranquilizers,
                    anesthesia, analgesia, or euthanasia when
                    scientifically necessary shall continue for
                    only the necessary period of time;
              (D) that no animal is used in more than one major
            operative experiment from which it is allowed to
            recover except in cases of--
                      (i) scientific necessity; or
                      (ii) other special circumstances as
                    determined by the Secretary; and
              (E) that exceptions to such standards may be made
            only when specified by research protocol and that any
            such exception shall be detailed and explained in a
            report outlined under paragraph (7) and filed with the
            Institutional Animal Committee.
      (4) The Secretary shall also promulgate standards to govern
    the transportation in commerce, and the handling, care, and
    treatment in connection therewith, by intermediate handlers,
    air carriers, or other carriers, of animals consigned by any
    dealer, research facility, exhibitor, operator of an auction
    sale, or other person, or any department, agency, or
    instrumentality of the United States or of any State or local
    government, for transportation in commerce. The Secretary shall
    have authority to promulgate such rules and regulations as he
    determines necessary to assure humane treatment of animals in
    the course of their transportation in commerce including
    requirements such as those with respect to containers, feed,
    water, rest, ventilation, temperature, and handling.
      (5) In promulgating and enforcing standards established
    pursuant to this section, the Secretary is authorized and
    directed to consult experts, including outside consultants
    where indicated.
      (6)(A) Nothing in this Act--
              (i) except as provided in paragraphs (7) of this
            subsection, shall be construed as authorizing the
            Secretary to promulgate rules, regulations, or orders
            with regard to the design, outlines, or guidelines of
            actual research or experimentation by a research
            facility as determined by such research facility;
              (ii) except as provided subparagraphs (A) and (C)(ii)
            through (v) of paragraph (3) and paragraph (7) of this
            subsection, shall be construed as authorizing the
            Secretary to promulgate rules, regulations, or orders
            with regard to the performance of actual research or
            experimentation by a research facility as determined by
            such research facility; and
              (iii) shall authorize the Secretary, during
            inspection, to interrupt the conduct of actual research
            or experimentation.
      (B) No rule, regulation, order, or part of this Act shall be
    construed to require a research facility to disclose publicly
    or to the Institutional Animal Committee during its inspection,
    trade secrets or commercial or financial information which is
    privileged or confidential.
      (7)(A) The Secretary shall require each research facility to
    show upon inspection, and to report at least annually, that the
    provisions of this Act are being followed and that
    professionally acceptable standards governing the care,
    treatment, and use of animals are being followed by the
    research facility during actual research or experimentation.
      (B) In complying with subparagraph (A), such research
    facilities shall provide--
              (i) information on procedures likely to produce pain
            or distress in any animal and assurances demonstrating
            that the principal investigator considered alternatives
            to those procedures;
              (ii) assurances satisfactory to the Secretary that
            such facility is adhering to the standards described in
            this section; and
              (iii) an explanation for any deviation from the
            standards promulgated under this section.
      (8) Paragraph (1) shall not prohibit any State (or a
    political subdivision of such State) from promulgating
    standards in addition to those standards promulgated by the
    Secretary under paragraph (1).
      (b)(1) The Secretary shall require that each research
    facility establish at least one Committee. Each Committee shall
    be appointed by the chief executive officer of each such
    research facility and shall be composed of not fewer than three
    members. Such members shall possess sufficient ability to
    assess animal care, treatment, and practices in experimental
    research as determined by the needs of the research facility
    and shall represent society's concerns regarding the welfare of
    animal subjects used as such facility. Of the members of the
    Committee--
              (A) at least one member shall be a doctor of
            veterinary medicine;
              (B) at least one member--
                      (i) shall not be affiliated in any way with
                    such facility other than as a member of the
                    Committee;
                      (ii) shall not be a member of the immediate
                    family of a person who is affiliated with such
                    facility; and
                      (iii) is intended to provide representation
                    for general community interests in the proper
                    care and treatment of animals; and
              (C) in those cases where the Committee consists of
            more than three members, not more than three members
            shall be from the same administrative unit of such
            facility.
      (2) A quorum shall be required for all formal actions of the
    Committee, including inspections under paragraph (3).
      (3) The Committee shall inspect at least semiannually all
    animal study areas and animal facilities of such research
    facility and review as part of the inspection--
              (A) practices involving pain to animals, and
              (B) the condition of animals,
    to ensure compliance with the provisions of this Act to
    minimize pain and distress to animals. Exceptions to the
    requirements of inspection of such study areas may be made by
    the Secretary if animals are studied in their natural
    environment and the study area is prohibitive to easy access.
      (4)(A) The Committee shall file an inspection certification
    report of each inspection at the research facility. Such report
    shall--
              (i) be signed by a majority of the Committee members
            involved in the inspection;
              (ii) include reports of any violation of the
            standards promulgated, or assurances required, by the
            Secretary, including any deficient conditions of animal
            care or treatment, any deviations of research practices
            from originally approved proposals that adversely
            affect animal welfare, any notification to the facility
            regarding such conditions, and any corrections made
            thereafter;
              (iii) include any minority views of the Committee;
            and
              (iv) include any other information pertinent to the
            activities of the Committee.
      (B) Such report shall remain on file for at least three years
    at the research facility and shall be available for inspection
    by the Animal and Plant Health Inspection Service and any
    funding Federal agency.
      (C) In order to give the research facility an opportunity to
    correct any deficiencies or deviations discovered by reason of
    paragraph (3), the Committee shall notify the administrative
    representative of the research facility of any deficiencies or
    deviations from the provisions of this Act. If, after
    notification and an opportunity for correction, such
    deficiencies or deviations remain uncorrected, the Committee
    shall notify (in writing) the Animal and Plant Health
    Inspection Service and the funding Federal agency of such
    deficiencies or deviations.
      (5) The inspection results shall be available to Department
    of Agriculture inspectors for review during inspections.
    Department of agriculture inspectors shall forward any
    Committee inspection records which include reports of
    uncorrected deficiencies or deviations to the Animal and Plant
    Health Inspection Service and any funding Federal agency of the
    project with respect to which such uncorrected deficiencies and
    deviations occurred.
      (c) In the case of Federal research facilities, a Federal
    Committee shall be established and shall have the same
    composition and responsibilities provided in subsection (b),
    except that the Federal Committee shall report deficiencies or
    deviations to the head of the Federal agency conducting the
    research rather than to the Animal and Plant Health Inspection
    Service. The head of the Federal agency conducting the research
    shall be responsible for--
              (1) all corrective action to be taken at the
            facility; and
              (2) the granting of all exceptions to inspection
            protocol.
      (d) Each research facility shall provide for the training of
    scientists, animal technicians, and other personnel involved
    with animal care and treatment in such facility as required by
    the Secretary. Such training shall include instruction on--
              (1) the humane practice of animal maintenance and
            experimentation;
              (2) research or testing methods that minimize or
            eliminate the use of animals or limit animal pain or
            distress;
              (3) utilization of the information service at the
            National Agricultural Library, established under
            subsection (e); and
              (4) methods whereby deficiencies in animal care and
            treatment should be reported.
      (e) The Secretary shall establish an information service at
    the National Agricultural Library. Such service shall, in
    cooperation with the National Library of Medicine, provide
    information--
              (1) pertinent to employee training;
              (2) which could prevent unintended duplication of
            animal experimentation as determined by the needs of
            the research facility; and
              (3) on improved methods of animal experimentation,
            including methods which could--
                      (A) reduce or replace animal use; and
                      (B) minimize pain and distress to animals,
                    such as anesthetic and analgesic procedures.
      (f) In any case in which a Federal agency funding a research
    project determines that conditions of animal care, treatment,
    or practice in a particular project have not been in compliance
    with standards promulgated under this Act, despite notification
    by the Secretary or such Federal agency to the research
    facility and an opportunity for correction, such agency shall
    suspend or revoke Federal support for the project. Any research
    facility losing Federal support as a result of actions taken
    under the preceding sentence shall have the right of appeal as
    provided in sections 701 through 706 of title 5, United States
    Code.
      [(f)] (g) No dogs or cats, or additional kinds or classes of
    animals designated by regulation of the Secretary, shall be
    delivered by any dealer, research facility, exhibitor, operator
    of an auction sale, or department, agency, or instrumentality
    of the United States or of any State or local government, to
    any intermediate handler or carrier for transportation in
    commerce, or received by any such handler or carrier for such
    transportation from any such person, department, agency, or
    instrumentality, unless the animal is accompanied by a
    certificate issued by a veterinarian licensed to practice
    veterinary medicine, certifying that he inspected the animal on
    a specified date, which shall not be more than ten days before
    such delivery, and, when so inspected, the animal appeared free
    of any infectious disease or physical abnormality which would
    endanger the animal or animals or other animals or endanger
    public health: Provided, however, That the Secretary may by
    regulation provide exceptions to this certification
    requirement, under such conditions as he may prescribe in the
    regulations, for animals shipped to research facilities for
    purposes of research, testing or experimentation requiring
    animals not eligible for such certification. Such certificates
    received by the intermediate handlers and the carriers shall be
    retained by them, as provided by regulations of the Secretary,
    in accordance with section 10 of this Act.
      [(g)] (h) No dogs or cats, or additional kinds or classes of
    animals designated by regulation of the Secretary, shall be
    delivered by any person to any intermediate handler or carrier
    for transportation in commerce except to registered research
    facilities if they are less than such age as the Secretary may
    by regulation prescribe. The Secretary shall designate
    additional kinds and classes of animals and may prescribe
    different ages for particular kinds or classes of dogs, cats,
    or designated animals, for the purposes of this section, when
    he determines that such action is necessary or adequate to
    assure their humane treatment in connection with their
    transportation in commerce.
      [(h)] (i) No intermediate handler or carrier involved in the
    transportation of any animal in commerce shall participate in
    any arrangement or engage in any practice under which the cost
    of such animal or the cost of the transportation of such animal
    is to be paid and collected upon delivery of the animal to the
    consignee, unless the consignor guarantees in writing the
    payment of transportation charges for any animal not claimed
    within a period of 48 hours after notice to the consignee of
    arrival of the animal, including, where necessary, both the
    return transportation charges and an amount sufficient to
    reimburse the carrier for all out-of-pocket expenses incurred
    for the care, feeding, and storage of such animals.

               *       *       *       *       *       *       *

    [SEC. 18. IMPORTATION OF LIVE DOGS.

      [(a) Definitions.--In this section:
              [(1) Importer.--The term ``importer'' means any
            person who, for purposes of resale, transports into the
            United States puppies from a foreign country.
              [(2) Resale.--The term ``resale'' includes any
            transfer of ownership or control of an imported dog of
            less than 6 months of age to another person, for more
            than de minimis consideration.
      [(b) Requirements.--
              [(1) In general.--Except as provided in paragraph
            (2), no person shall import a dog into the United
            States for purposes of resale unless, as determined by
            the Secretary, the dog--
                      [(A) is in good health;
                      [(B) has received all necessary vaccinations;
                    and
                      [(C) is at least 6 months of age, if imported
                    for resale.
              [(2) Exception.--
                      [(A) In general.--The Secretary, by
                    regulation, shall provide an exception to any
                    requirement under paragraph (1) in any case in
                    which a dog is imported for--
                              [(i) research purposes; or
                              [(ii) veterinary treatment.
                      [(B) Lawful importation into hawaii.--
                    Paragraph (1)(C) shall not apply to the lawful
                    importation of a dog into the State of Hawaii
                    from the British Isles, Australia, Guam, or New
                    Zealand in compliance with the applicable
                    regulations of the State of Hawaii and the
                    other requirements of this section, if the dog
                    is not transported out of the State of Hawaii
                    for purposes of resale at less than 6 months of
                    age.
      [(c) Implementation and Regulations.--The Secretary, the
    Secretary of Health and Human Services, the Secretary of
    Commerce, and the Secretary of Homeland Security shall
    promulgate such regulations as the Secretaries determine to be
    necessary to implement and enforce this section.
      [(d) Enforcement.--An importer that fails to comply with this
    section shall--
              [(1) be subject to penalties under section 19; and
              [(2) provide for the care (including appropriate
            veterinary care), forfeiture, and adoption of each
            applicable dog, at the expense of the importer.]

               *       *       *       *       *       *       *

      [Sec. 26. (a) Sponsoring or Exhibiting an Animal in,
    Attending, or Causing an Individual Who Has Not Attained the
    Age of 16 To Attend, an Animal Fighting Venture.--
              [(1) Sponsoring or exhibiting.--It shall be unlawful
            for any person to knowingly sponsor or exhibit an
            animal in an animal fighting venture.
              [(2)  Attending or causing an individual who has not
            attained the age of 16 to attend.--It shall be
            unlawful]

    SEC. 26. SPONSORING OR EXHIBITING AN ANIMAL IN, ATTENDING, CAUSING AN
                        INDIVIDUAL WHO HAS NOT ATTAINED THE AGE OF 16 TO
                        ATTEND, OR GAMBLING ON, AN ANIMAL FIGHTING VENTURE.

      (a) Sponsoring or Exhibiting.--
              (1) In general.--It shall be unlawful for any person
            to knowingly sponsor or exhibit an animal in an animal
            fighting venture.
              (2) Attending or causing an individual who has not
            attained the age of 16 to attend.--It shall be unlawful
            for any person to--
                      (A) knowingly attend an animal fighting
                    venture; or
                      (B) knowingly cause an individual who has not
                    attained the age of 16 to attend an animal
                    fighting venture.
              (3) Animal venture gambling.--It shall be unlawful
            for any person to gamble on an animal fighting venture,
            including an in-person or broadcast event.
      (b) Buying, Selling, Delivering, Possessing, Training, or
    Transporting Animals for Participation in Animal Fighting
    Venture.--It shall be unlawful for any person to knowingly
    sell, buy, possess, train, transport, deliver, or receive any
    animal for purposes of having the animal participate in an
    animal fighting venture.
      (c) Use of Postal Service or Other Interstate Instrumentality
    for Promoting or Furthering Animal Fighting Venture.--It shall
    be unlawful for any person to knowingly use the mail service of
    the United States Postal Service or any instrumentality of
    interstate commerce for commercial speech for purposes of
    advertising an animal, or an instrument described in subsection
    (d), for use in an animal fighting venture, promoting or in any
    other manner furthering an animal fighting venture except as
    performed outside the limits of the States of the United
    States.
      (d) Buying, Selling, Delivering, or Transporting Sharp
    Instruments for Use in Animal Fighting Venture.--It shall be
    unlawful for any person to knowingly sell, buy, transport, or
    deliver in interstate or foreign commerce a knife, a gaff, or
    any other sharp instrument attached, or designed or intended to
    be attached, to the leg of a bird for use in an animal fighting
    venture.
      (e) Investigation of Violations by Secretary; Assistance by
    Other Federal Agencies; Issuance of Search Warrant; Forfeiture;
    Costs Recoverable in Forfeiture or Civil Action.--The Secretary
    or any other person authorized by him shall make such
    investigations as the Secretary deems necessary to determine
    whether any person has violated or is violating any provision
    of this section, and the Secretary may obtain the assistance of
    the Federal Bureau of Investigations, the Department of the
    Treasury, or other law enforcement agencies of the United
    States, and State and local governmental agencies, in the
    conduct of such investigations, under cooperative agreements
    with such agencies. A warrant to search for and seize any
    animal which there is probable cause to believe was involved in
    any violation of this section may be issued by any judge of the
    United States or of a State court of record or by a United
    States magistrate within the district wherein the animal sought
    is located. Any United States marshal or any person authorized
    under this section to conduct investigations may apply for and
    execute any such warrant, and any animal seized under such a
    warrant shall be held by the United States marshal or other
    authorized person pending disposition thereof by the court in
    accordance with this paragraph (f). Necessary care including
    veterinary treatment shall be provided while the animals are so
    held in custody. Any animal involved in any violation of this
    section shall be liable to be proceeded against and forfeited
    to the United States at any time on complaint filed in any
    United States district court or other court of the United
    States for any jurisdiction in which the animal is found and
    upon a judgment of forfeiture shall be disposed of by sale for
    lawful purposes or by other humane means, as the court may
    direct. Costs incurred for care of animals seized and forfeited
    under this section shall be recoverable from the owner of the
    animals (1) if he appears in such forfeiture proceeding, or (2)
    in a separate civil action brought in the jurisdiction in which
    the owner is found, resides, or transacts business.
      (f) Definitions.--In this section--
              (1) the term ``animal fighting venture'' means any
            event, in or affecting interstate or foreign commerce,
            that involves a fight conducted or to be conducted
            between at least 2 animals for purposes of sport,
            wagering, or entertainment, except that the term
            ``animal fighting venture'' shall not be deemed to
            include any activity the primary purpose of which
            involves the use of one or more animals in hunting
            another animal;
              (2) the term ``instrumentality of interstate
            commerce'' means any written, wire, radio, television
            or other form of communication in, or using a facility
            of, interstate commerce;
              (3) the term ``State'' means any State of the United
            States, the District of Columbia, the Commonwealth of
            Puerto Rico, and any territory or possession of the
            United States;
              (4) the term ``animal'' means any live bird, or any
            live mammal, except man.
      (g) Relationship to Other Provisions.--The conduct by any
    person of any activity prohibited by this section shall not
    render such person subject to the other sections of this Act as
    a dealer, exhibitor, otherwise.
      (h) Conflict With State Law.--
              (1) In general.--The provisions of this Act shall not
            supersede or otherwise invalidate any such State,
            local, or municipal legislation or ordinance relating
            to animal fighting ventures except in case of a direct
            and irreconcilable conflict between any requirements
            thereunder and this Act or any rule, regulation, or
            standard hereunder.
      (2)
      (i) Criminal Penalties.--The criminal penalties for
    violations of subsection (a), (b), (c), or (d) are provided in
    section 49 of title 18, United States Code.

               *       *       *       *       *       *       *

    SEC. 30. PROTECTION OF GREYHOUNDS.

      (a) In General.--It shall be unlawful--
              (1) for any person to knowingly engage in commercial
            greyhound racing, live lure training, or open field
            coursing events in which any greyhound is moved in
            interstate or foreign commerce;
              (2) to conduct any commercial greyhound racing or
            racing meeting where any form of betting or wagering on
            the speed or ability of greyhounds occurs;
              (3) to conduct open field coursing or live lure
            training with the use of any bait that is not an
            inanimate object;
              (4) to engage in or facilitate simulcast betting or
            wagering on greyhound races in interstate or foreign
            commerce; and
              (5) for any person to knowingly sell, buy, possess,
            train, transport, deliver, or receive any greyhound for
            purposes of having the greyhound participate in
            commercial greyhound racing, live lure training, or
            open field coursing events.
      (b) Investigations.--The Secretary, or any other person
    authorized by the Secretary, shall make such investigations as
    the Secretary determines necessary to determine whether any
    person has violated or is violating any provision of this
    section. The Secretary may obtain the assistance of the Federal
    Bureau of Investigation, the Department of the Treasury, or
    other law enforcement agencies of the United States, and State
    and local governmental agencies, in the conduct of such
    investigations, under cooperative agreements with such
    agencies.
      (c) Penalties.--Any person who violates any of paragraphs (1)
    through (5) of subsection (a) shall be fined under this Act,
    imprisoned for not more than 7 years, or both, for each such
    violation. Each instance of a violation of any such paragraph
    shall be considered a single violation.
      (d) Definitions.--In this section:
              (1) Commercial greyhound racing.--The term
            ``commercial greyhound racing'' means any event
            involving the participation of greyhounds in which
            betting or wagering on the speed or ability of such
            greyhounds occurs.
              (2) Simulcast.--The term ``simulcast'' means the
            simultaneous audio or visual transmission from one
            location of foreign or domestic greyhound races taking
            place at a different location and gambling on the
            results of such races.

                                  ----------

                          FEDERAL MEAT INSPECTION ACT

               TITLE I--INSPECTION REQUIREMENTS; ADULTERATION AND
                                  MISBRANDING

               *       *       *       *       *       *       *

    SEC. 26. SMALL AND VERY SMALL ESTABLISHMENT GUIDANCE AND RESOURCES.

      (a) Studies; Model Plans.--Not later than 18 months after the
    date of the enactment of this section, the Secretary shall, to
    the maximum extent practicable, make publicly available--
              (1) a list of scientific studies (which the Secretary
            shall update as necessary) for use by small
            establishments and very small establishments in
            developing a Hazard Analysis and Critical Control
            Points plan;
              (2) guidelines relating to best practices and
            techniques by small establishments and very small
            establishments in the production of raw or further
            processed meat and meat food products; and
              (3) scale-appropriate model Hazard Analysis and
            Critical Control Points plans for small establishments
            and very small establishments, including model plans
            for--
                      (A) slaughter-only establishments;
                      (B) processing-only establishments; and
                      (C) slaughter and processing establishments.
      (b) Guidance.--Not later than 2 years after the date of
    enactment of this section, the Secretary shall publish a
    guidance document, after notice and an opportunity for public
    comment, providing information on the requirements that need to
    be met for small establishments and very small establishments
    to develop, pursuant to this Act, a Hazard Analysis and
    Critical Control Points plan.
      (c) Data Confidentiality.--In carrying out this section, the
    Secretary shall not publish confidential business information
    of any meat processing establishment, including a Hazard
    Analysis and Critical Control Points plan of a meat processing
    establishment.
      (d) Small Establishment and Very Small Establishment
    Defined.--In this section, the terms ``small establishment''
    and ``very small establishment'' have the meanings given the
    terms ``smaller establishment'' and ``very small
    establishment'', respectively, in the final rule entitled
    ``Pathogen Reduction; Hazard Analysis and Critical Control
    Point (HACCP) Systems'' (61 Fed. Reg. 38806 (July 25, 1996))
    (or successor regulations).

               *       *       *       *       *       *       *

               TITLE V--INSPECTIONS BY FEDERAL AND STATE AGENCIES

    SEC. 501. INTERSTATE SHIPMENT OF MEAT INSPECTED BY FEDERAL AND STATE
                        AGENCIES FOR CERTAIN SMALL ESTABLISHMENTS.

      (a) Definitions.--
              (1) Appropriate state agency.--The term ``appropriate
            State agency'' means a State agency described in
            section 301(b).
              (2) Designated personnel.--The term ``designated
            personnel'' means inspection personnel of a State
            agency that have undergone all necessary inspection
            training and certification to assist the Secretary in
            the administration and enforcement of this Act,
            including rules and regulations issued under this Act.
              (3) Eligible establishment.--The term ``eligible
            establishment'' means an establishment that is in
            compliance with--
                      (A) the State inspection program of the State
                    in which the establishment is located; and
                      (B) this Act, including rules and regulations
                    issued under this Act.
              (4) Meat item.--The term ``meat item'' means--
                      (A) a portion of meat; and
                      (B) a meat food product.
              (5) Selected establishment.--The term ``selected
            establishment'' means an eligible establishment that is
            selected by the Secretary, in coordination with the
            appropriate State agency of the State in which the
            eligible establishment is located, under subsection (b)
            to ship carcasses, portions of carcasses, and meat
            items in interstate commerce.
      (b) Authority of Secretary to Allow Shipments.--
              (1) In general.--Subject to paragraph (2), the
            Secretary, in coordination with the appropriate State
            agency of the State in which an establishment is
            located, may select the establishment to ship
            carcasses, portions of carcasses, and meat items in
            interstate commerce, and place on each carcass, portion
            of a carcass, and meat item shipped in interstate
            commerce a Federal mark, stamp, tag, or label of
            inspection, if--
                      (A) the carcass, portion of carcass, or meat
                    item qualifies for the mark, stamp, tag, or
                    label of inspection under the requirements of
                    this Act;
                      (B) the establishment is an eligible
                    establishment; and
                      (C) inspection services for the establishment
                    are provided by designated personnel.
              (2) Prohibited establishments.--In carrying out
            paragraph (1), the Secretary, in coordination with an
            appropriate State agency, shall not select an
            establishment that--
                      (A) on average, employs more than 25
                    employees (including supervisory and
                    nonsupervisory employees), as defined by the
                    Secretary;
                      (B) as of the date of the enactment of this
                    section, ships in interstate commerce
                    carcasses, portions of carcasses, or meat items
                    that are inspected by the Secretary in
                    accordance with this Act;
                      (C)(i) is a Federal establishment;
                      (ii) was a Federal establishment that was
                    reorganized on a later date under the same name
                    or a different name or person by the person,
                    firm, or corporation that controlled the
                    establishment as of the date of the enactment
                    of this section; or
                      (iii) was a State establishment as of the
                    date of the enactment of this section that--
                              (I) as of the date of the enactment
                            of this section, employed more than 25
                            employees; and
                              (II) was reorganized on a later date
                            by the person, firm, or corporation
                            that controlled the establishment as of
                            the date of the enactment of this
                            section;
                      (D) is in violation of this Act;
                      (E) is located in a State that does not have
                    a State inspection program; or
                      (F) is the subject of a transition carried
                    out in accordance with a procedure developed by
                    the Secretary under paragraph (3)(A).
              (3) Establishments that employ more than 25
            employees.--
                      (A) Development of procedure.--The Secretary
                    may develop a procedure to transition to a
                    Federal establishment any establishment under
                    this section that, on average, consistently
                    employs more than 25 employees.
                      (B) Eligibility of certain establishments.--
                              (i) In general.--A State
                            establishment that employs more than 25
                            employees but less than 35 employees as
                            of the date of the enactment of this
                            section may be selected as a selected
                            establishment under this subsection.
                              (ii) Procedures.--A State
                            establishment shall be subject to the
                            procedures established under
                            subparagraph (A) beginning on the date
                            that is 3 years after the effective
                            date described in subsection (j).
      (c) Reimbursement of State Costs.--The Secretary shall
    reimburse a State for costs related to the inspection of
    selected establishments in the State in accordance with Federal
    requirements in an amount of not less than 60 percent of
    eligible State costs.
      (d) Coordination Between Federal and State Agencies.--
              (1) In general.--The Secretary shall designate an
            employee of the Federal Government as State coordinator
            for each appropriate State agency--
                      (A) to provide oversight and enforcement of
                    this title; and
                      (B) to oversee the training and inspection
                    activities of designated personnel of the State
                    agency.
              (2) Supervision.--A State coordinator shall be under
            the direct supervision of the Secretary.
              (3) Duties of state coordinator.--
                      (A) In general.--A State coordinator shall
                    visit selected establishments with a frequency
                    that is appropriate to ensure that selected
                    establishments are operating in a manner that
                    is consistent with this Act (including
                    regulations and policies under this Act).
                      (B) Quarterly reports.--A State coordinator
                    shall, on a quarterly basis, submit to the
                    Secretary a report that describes the status of
                    each selected establishment that is under the
                    jurisdiction of the State coordinator with
                    respect to the level of compliance of each
                    selected establishment with the requirements of
                    this Act.
                      (C) Immediate notification requirement.--If a
                    State coordinator determines that any selected
                    establishment that is under the jurisdiction of
                    the State coordinator is in violation of any
                    requirement of this Act, the State coordinator
                    shall--
                              (i) immediately notify the Secretary
                            of the violation; and
                              (ii) deselect the selected
                            establishment or suspend inspection at
                            the selected establishment.
              (4) Performance evaluations.--Performance evaluations
            of State coordinators designated under this subsection
            shall be conducted by the Secretary as part of the
            Federal agency management control system.
      (e) Audits.--
              (1) Periodic audits conducted by inspector general of
            the department of agriculture.--Not later than 2 years
            after the effective date described in subsection (j),
            and not less often than every 3 years thereafter, the
            Inspector General of the Department of Agriculture
            shall conduct an audit of each activity taken by the
            Secretary under this section for the period covered by
            the audit to determine compliance with this section.
              (2) Audit conducted by comptroller general of the
            united states.--Not earlier than 3 years, nor later
            than 5 years, after the date of the enactment of this
            section, the Comptroller General of the United States
            shall conduct an audit of the implementation of this
            section to determine--
                      (A) the effectiveness of the implementation
                    of this section; and
                      (B) the number of selected establishments
                    selected by the Secretary to ship carcasses,
                    portions of carcasses, or meat items under this
                    section.
      (f) Technical Assistance Division.--
              (1) Establishment.--Not later than 180 days after the
            effective date described in subsection (j), the
            Secretary shall establish in the Food Safety and
            Inspection Service of the Department of Agriculture a
            technical assistance division to coordinate the
            initiatives of any other appropriate agency of the
            Department of Agriculture to provide--
                      (A) outreach, education, and training to very
                    small or certain small establishments (as
                    defined by the Secretary); and
                      (B) grants to appropriate State agencies to
                    provide outreach, technical assistance,
                    education, and training to very small or
                    certain small establishments (as defined by the
                    Secretary).
              (2) Personnel.--The technical assistance division
            shall be comprised of individuals that, as determined
            by the Secretary--
                      (A) are of a quantity sufficient to carry out
                    the duties of the technical assistance
                    division; and
                      (B) possess appropriate qualifications and
                    expertise relating to the duties of the
                    technical assistance division.
      (g) Transition Grants.--The Secretary may provide grants to
    appropriate State agencies to assist the appropriate State
    agencies in helping establishments covered by title III to
    transition to selected establishments.
      (h) Violations.--Any selected establishment that the
    Secretary determines to be in violation of any requirement of
    this Act shall be transitioned to a Federal establishment in
    accordance with a procedure developed by the Secretary under
    subsection (b)(3)(A).
      (i) Effect.--Nothing in this section limits the jurisdiction
    of the Secretary with respect to the regulation of meat and
    meat products under this Act.
      (j) Effective Date.--
              (1) In general.--This section takes effect on the
            date on which the Secretary, after providing a period
            of public comment (including through the conduct of
            public meetings or hearings), promulgates final
            regulations to carry out this section.
              (2) Requirement.--Not later than 18 months after the
            date of the enactment of this section, the Secretary
            shall promulgate final regulations in accordance with
            paragraph (1).
      (k) Federal Outreach.--In each of fiscal years 2027 through
    2031, the Secretary shall conduct outreach to States that--
              (1) have a State meat inspection program in effect
            pursuant to section 301; and
              (2) do not have a selected establishment.

                                  ----------

                        POULTRY PRODUCTS INSPECTION ACT

               *       *       *       *       *       *       *

    SEC. 14A. SMALL AND VERY SMALL ESTABLISHMENT GUIDANCE AND RESOURCES.

      (a) Studies; Model Plans.--Not later than 18 months after the
    date of enactment of this section, the Secretary shall, to the
    maximum extent practicable, make publicly available--
              (1) a list of scientific studies (which the Secretary
            shall update as necessary) for use by small
            establishments and very small establishments in
            developing a Hazard Analysis and Critical Control
            Points plan;
              (2) guidelines relating to best practices and
            techniques used by small establishments and very small
            establishments in the production of raw or further
            processed poultry products; and
              (3) scale-appropriate model Hazard Analysis and
            Critical Control Points plans for small establishments
            and very small establishments, including model plans
            for--
                      (A) slaughter-only establishments;
                      (B) processing-only establishments; and
                      (C) slaughter and processing establishments.
      (b) Guidance.--Not later than 2 years after the date of
    enactment of this section, the Secretary shall publish a
    guidance document, after notice and an opportunity for public
    comment, providing information on the requirements that need to
    be met for small establishments and very small establishments
    to develop a Hazard Analysis and Critical Control Points plan
    pursuant to this Act.
      (c) Data Confidentiality.--In carrying out this section, the
    Secretary shall not publish confidential business information
    of any poultry processing establishment, including a Hazard
    Analysis and Critical Control Points plan of a poultry
    processing establishment.
      (d) Small Establishment and Very Small Establishment
    Defined.--In this section, the terms ``small establishment''
    and ``very small establishment'' have the meanings given the
    terms ``smaller establishment'' and ``very small
    establishment'', respectively, in the final rule entitled
    ``Pathogen Reduction; Hazard Analysis and Critical Control
    Point (HACCP) Systems'' (61 Fed. Reg. 38806 (July 25, 1996))
    (or successor regulations).

               *       *       *       *       *       *       *

    SEC. 31. INTERSTATE SHIPMENT OF POULTRY INSPECTED BY FEDERAL AND STATE
                        AGENCIES FOR CERTAIN SMALL ESTABLISHMENTS.

      (a) Definitions.--
              (1) Appropriate state agency.--The term ``appropriate
            State agency'' means a State agency described in
            section 5(a)(1).
              (2) Designated personnel.--The term ``designated
            personnel'' means inspection personnel of a State
            agency that have undergone all necessary inspection
            training and certification to assist the Secretary in
            the administration and enforcement of this Act,
            including rules and regulations issued under this Act.
              (3) Eligible establishment.--The term ``eligible
            establishment'' means an establishment that is in
            compliance with--
                      (A) the State inspection program of the State
                    in which the establishment is located; and
                      (B) this Act, including rules and regulations
                    issued under this Act.
              (4) Poultry item.--The term ``poultry item'' means--
                      (A) a portion of poultry; and
                      (B) a poultry product.
              (5) Selected establishment.--The term ``selected
            establishment'' means an eligible establishment that is
            selected by the Secretary, in coordination with the
            appropriate State agency of the State in which the
            eligible establishment is located, under subsection (b)
            to ship poultry items in interstate commerce.
      (b) Authority of Secretary to Allow Shipments.--
              (1) In general.--Subject to paragraph (2), the
            Secretary, in coordination with the appropriate State
            agency of the State in which an establishment is
            located, may select the establishment to ship poultry
            items in interstate commerce, and place on each poultry
            item shipped in interstate commerce a Federal mark,
            stamp, tag, or label of inspection, if--
                      (A) the poultry item qualifies for the
                    Federal mark, stamp, tag, or label of
                    inspection under the requirements of this Act;
                      (B) the establishment is an eligible
                    establishment; and
                      (C) inspection services for the establishment
                    are provided by designated personnel.
              (2) Prohibited establishments.--In carrying out
            paragraph (1), the Secretary, in coordination with an
            appropriate State agency, shall not select an
            establishment that--
                      (A) on average, employs more than 25
                    employees (including supervisory and
                    nonsupervisory employees), as defined by the
                    Secretary;
                      (B) as of the date of the enactment of this
                    section, ships in interstate commerce
                    carcasses, portions of carcasses, or poultry
                    items that are inspected by the Secretary in
                    accordance with this Act;
                      (C)(i) is a Federal establishment;
                      (ii) was a Federal establishment as of the
                    date of the enactment of this section, and was
                    reorganized on a later date under the same name
                    or a different name or person by the person,
                    firm, or corporation that controlled the
                    establishment as of the date of the enactment
                    of this section; or
                      (iii) was a State establishment as of the
                    date of the enactment of this section that--
                              (I) as of the date of the enactment
                            of this section, employed more than 25
                            employees; and
                              (II) was reorganized on a later date
                            by the person, firm, or corporation
                            that controlled the establishment as of
                            the date of the enactment of this
                            section;
                      (D) is in violation of this Act;
                      (E) is located in a State that does not have
                    a State inspection program; or
                      (F) is the subject of a transition carried
                    out in accordance with a procedure developed by
                    the Secretary under paragraph (3)(A).
              (3) Establishments that employ more than 25
            employees.--
                      (A) Development of procedure.--The Secretary
                    may develop a procedure to transition to a
                    Federal establishment any establishment under
                    this section that, on average, consistently
                    employs more than 25 employees.
                      (B) Eligibility of certain establishments.--
                              (i) In general.--A State
                            establishment that employs more than 25
                            employees but less than 35 employees as
                            of the date of the enactment of this
                            section may be selected as a selected
                            establishment under this subsection.
                              (ii) Procedures.--A State
                            establishment shall be subject to the
                            procedures established under
                            subparagraph (A) beginning on the date
                            that is 3 years after the effective
                            date described in subsection (i).
      (c) Reimbursement of State Costs.--The Secretary shall
    reimburse a State for costs related to the inspection of
    selected establishments in the State in accordance with Federal
    requirements in an amount of not less than 60 percent of
    eligible State costs.
      (d) Coordination Between Federal and State Agencies.--
              (1) In general.--The Secretary shall designate an
            employee of the Federal Government as State coordinator
            for each appropriate State agency--
                      (A) to provide oversight and enforcement of
                    this section; and
                      (B) to oversee the training and inspection
                    activities of designated personnel of the State
                    agency.
              (2) Supervision.--A State coordinator shall be under
            the direct supervision of the Secretary.
              (3) Duties of state coordinator.--
                      (A) In general.--A State coordinator shall
                    visit selected establishments with a frequency
                    that is appropriate to ensure that selected
                    establishments are operating in a manner that
                    is consistent with this Act (including
                    regulations and policies under this Act).
                      (B) Quarterly reports.--A State coordinator
                    shall, on a quarterly basis, submit to the
                    Secretary a report that describes the status of
                    each selected establishment that is under the
                    jurisdiction of the State coordinator with
                    respect to the level of compliance of each
                    selected establishment with the requirements of
                    this Act.
                      (C) Immediate notification requirement.--If a
                    State coordinator determines that any selected
                    establishment that is under the jurisdiction of
                    the State coordinator is in violation of any
                    requirement of this Act, the State coordinator
                    shall--
                              (i) immediately notify the Secretary
                            of the violation; and
                              (ii) deselect the selected
                            establishment or suspend inspection at
                            the selected establishment.
              (4) Performance evaluations.--Performance evaluations
            of State coordinators designated under this subsection
            shall be conducted by the Secretary as part of the
            Federal agency management control system.
      (e) Audits.--
              (1) Periodic audits conducted by inspector general of
            the department of agriculture.--Not later than 2 years
            after the effective date described in subsection (i),
            and not less often than every 3 years thereafter, the
            Inspector General of the Department of Agriculture
            shall conduct an audit of each activity taken by the
            Secretary under this section for the period covered by
            the audit to determine compliance with this section.
              (2) Audit conducted by comptroller general of the
            united states.--Not earlier than 3 years, nor later
            than 5 years, after the date of the enactment of this
            section, the Comptroller General of the United States
            shall conduct an audit of the implementation of this
            section to determine--
                      (A) the effectiveness of the implementation
                    of this section; and
                      (B) the number of selected establishments
                    selected by the Secretary to ship poultry items
                    under this section.
      (f) Transition Grants.--The Secretary may provide grants to
    appropriate State agencies to assist the appropriate State
    agencies in helping establishments covered by this Act to
    transition to selected establishments.
      (g) Violations.--Any selected establishment that the
    Secretary determines to be in violation of any requirement of
    this Act shall be transitioned to a Federal establishment in
    accordance with a procedure developed by the Secretary under
    subsection (b)(3)(A).
      (h) Effect.--Nothing in this section limits the jurisdiction
    of the Secretary with respect to the regulation of poultry and
    poultry products under this Act.
      (i) Effective Date.--
              (1) In general.--This section takes effect on the
            date on which the Secretary, after providing a period
            of public comment (including through the conduct of
            public meetings or hearings), promulgates final
            regulations to carry out this section.
              (2) Requirement.--Not later than 18 months after the
            date of the enactment of this section, the Secretary
            shall promulgate final regulations in accordance with
            paragraph (1).
      (j) Federal Outreach.--In each of fiscal years 2027 through
    2031, the Secretary shall conduct outreach to States that--
              (1) have a State poultry product inspection program
            in effect pursuant to section 5; and
              (2) do not have a selected establishment.

                                  ----------

          FEDERAL CROP INSURANCE REFORM AND DEPARTMENT OF AGRICULTURE
                           REORGANIZATION ACT OF 1994

               *       *       *       *       *       *       *

                            TITLE III--MISCELLANEOUS

               *       *       *       *       *       *       *

    SEC. 309. OFFICE OF TRIBAL RELATIONS.

      (a) In General.--The Secretary shall maintain in the Office
    of the Secretaryan Office of Tribal Relations, which [shall
    advise the Secretaryon policies related to Indian tribes and
    carry out such other functionsas the Secretary considers
    appropriate.] shall--
              (1) advise the Secretary on policies related to
            Indian tribes;
              (2) oversee--
                      (A) each self-determination contract (as
                    defined in section 4 of the Indian Self-
                    Determination and Education Assistance Act (25
                    U.S.C. 5304)) entered into between the
                    Secretary and a tribal organization; and
                      (B) each self-governance compact (as defined
                    in section 401 of such Act (25 U.S.C. 5361))
                    entered into between the Secretary and an
                    Indian tribe; and
              (3) carry out such other functions as the Secretary
            considers appropriate.
      (b) Tribal Advisory Committee.--
              (1) Definitions.--In [this subsection] this section:
                      (A) 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. 5304).
                      (B) Relevant committees of congress.--The
                    term ``relevant committees of Congress''
                    means--
                              (i) the Committee on Agriculture of
                            the House of Representatives;
                              (ii) the Committee on Agriculture,
                            Nutrition, and Forestry of the Senate;
                            and
                              (iii) the Committee on Indian Affairs
                            of the Senate.
                      (C) Tribal organization.--The term ``tribal
                    organization'' has the meaning given the term
                    in section 4 of the Indian Self-Determination
                    and Education Assistance Act (25 U.S.C. 5304).
              (2) Establishment of committee.--
                      (A) In general.--The Secretary shall
                    establish an advisory committee, to be known as
                    the Tribal Advisory Committee (referred to in
                    this subsection as the ``Committee'') to
                    provide advice and guidance to the Secretary on
                    matters relating to Tribal and Indian affairs.
                      (B) Facilitation.--The Committee shall
                    facilitate, but not supplant, government-to-
                    government consultation between the Department
                    of Agriculture (referred to in this subsection
                    as the ``Department'') and Indian tribes.
              (3) Membership.--
                      (A) Composition.--The Committee shall be
                    composed of 11 members, of whom--
                              (i) 3 shall be appointed by the
                            Secretary;
                              (ii) 1 shall be appointed by the
                            chairperson of the Committee on Indian
                            Affairs of the Senate;
                              (iii) 1 shall be appointed by the
                            ranking member of the Committee on
                            Indian Affairs of the Senate;
                              (iv) 1 shall be appointed by the
                            chairperson of the Committee on
                            Agriculture, Nutrition, and Forestry of
                            the Senate;
                              (v) 1 shall be appointed by the
                            ranking member of the Committee on
                            Agriculture, Nutrition, and Forestry of
                            the Senate;
                              (vi) 2 shall be appointed by the
                            chairperson of the Committee on
                            Agriculture of the House of
                            Representatives; and
                              (vii) 2 shall be appointed by the
                            ranking member of the Committee on
                            Agriculture of the House of
                            Representatives.
                      (B) Nominations.--The Secretary shall accept
                    nominations for members of the Committee from
                    any of the following:
                              (i) An Indian tribe.
                              (ii) A tribal organization.
                              (iii) A national or regional
                            organization with expertise in issues
                            relating to the duties of the Committee
                            described in paragraph (4).
                      (C) Diversity.--To the maximum extent
                    feasible, the Secretary shall ensure that the
                    members of the Committee represent a diverse
                    set of expertise on issues relating to
                    geographic regions, Indian tribes, and the
                    agricultural industry.
                      (D) Limitation.--No member of the Committee
                    shall be an officer or employee of the Federal
                    Government.
                      (E) Period of appointment; vacancies.--
                              (i) In general.--Each member of the
                            Committee--
                                      (I) subject to clause (ii),
                                    shall be appointed to a 3-year
                                    term; and
                                      (II) may be reappointed to
                                    not more than 3 consecutive
                                    terms.
                              (ii) Initial staggering.--The first 3
                            appointments by the Secretary under
                            paragraph (3)(A)(i) shall be for a 2-
                            year term.
                              (iii) Vacancies.--Any vacancy in the
                            Committee shall be filled in the same
                            manner as the original appointment not
                            more than 90 days after the date on
                            which the position becomes vacant.
                      (F) Meetings.--
                              (i) In general.--The Committee shall
                            meet in person not less than twice each
                            year.
                              (ii) Office of tribal relations
                            representative.--Not fewer than 1
                            representative from the Office of
                            Tribal Relations of the Department
                            shall be present at each meeting of the
                            Committee.
                              (iii) Department of interior
                            representative.--The Assistant
                            Secretary for Indian Affairs of the
                            Department of the Interior (or a
                            designee) shall be present at each
                            meeting of the Committee.
                              (iv) Nonvoting representatives.--The
                            individuals described in clauses (ii)
                            and (iii) shall be nonvoting
                            representatives at meetings of the
                            Committee.
              (4) Duties of committee.--The Committee shall--
                      (A) identify evolving issues of relevance to
                    Indian tribes relating to programs of the
                    Department;
                      (B) communicate to the Secretary the issues
                    identified under subparagraph (A);
                      (C) submit to the Secretary recommendations
                    for, and solutions to--
                              (i) the issues identified under
                            subparagraph (A);
                              (ii) issues raised at the Tribal,
                            regional, or national level; and
                              (iii) issues relating to any Tribal
                            consultation carried out by the
                            Department;
                      (D) discuss issues and proposals for changes
                    to the regulations, policies, and procedures of
                    the Department that impact Indian tribes;
                      (E) identify priorities and provide advice on
                    appropriate strategies for Tribal consultation
                    on issues at the Tribal, regional, or national
                    level regarding the Department;
                      (F) ensure that pertinent issues of the
                    Department are brought to the attention of an
                    Indian tribe in a timely manner so that timely
                    feedback from an Indian tribe can be obtained;
                    and
                      (G) identify and propose solutions to any
                    interdepartmental barrier between the
                    Department and other Federal agencies.
              (5) Reports.--
                      (A) In general.--Not less frequently than
                    once each year, the Committee shall submit to
                    the Secretary and the relevant committees of
                    Congress a report that describes--
                              (i) the activities of the Committee
                            during the previous year; and
                              (ii) recommendations for legislative
                            or administrative action for the
                            following year.
                      (B) Response from secretary.--Not more than
                    45 days after the date on which the Secretary
                    receives a report under subparagraph (A), the
                    Secretary shall submit a written response to
                    that report to--
                              (i) the Committee; and
                              (ii) the relevant committees of
                            Congress.
              (6) Compensation of members.--Members of the
            Committee 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
            Committee.
              (7) Federal advisory committee act exemption.--
            Section 14 of the Federal Advisory Committee Act (5
            U.S.C. App.) shall not apply to the Committee.

                                  ----------

             AGRICULTURAL FOREIGN INVESTMENT DISCLOSURE ACT OF 1978

               *       *       *       *       *       *       *

                                 [civil penalty

      [Sec. 3. (a) If the Secretary determines that a person--
              [(1) has failed to submit a report in accordance with
            the provisions of section 2 or
              [(2) has knowingly submitted a report under section
            2--
                      [(A) which does not contain all the
                    information required to be in such report, or
                      [(B) which contains information that is
                    misleading or false,
            such person shall be subject to a civil penalty imposed
            by the Secretary. The amount of any such civil penalty
            shall be determined in accordance with the provisions
            of subsection (b) of this section. Any such civil
            penalty shall be recoverable ]

    SEC. 3. CIVIL PENALTY.

      (a) In General.--A person shall be subject to a civil penalty
    imposed by the Secretary if the Secretary determines that the
    person--
              (1) has failed to submit a report in accordance with
            the provisions of section 2; or
              (2) has knowingly submitted a report under section 2
            that--
                      (A) does not contain all the information
                    required to be in such report; or
                      (B) contains information that is misleading
                    or false.
      (b) Civil Action.--Any civil penalty imposed by the Secretary
    under subsection (a) shall be recoverable in a civil action
    brought by the Attorney General of the United States in an
    appropriate district court of the United States.
      [(b)] (c) Amount of Penalty._The amount of any civil penalty
    imposed by the Secretary under subsection (a) [of this section]
    shall be such amount as the Secretary determines to be
    appropriate to carry out the purposes of this Act, except that
    such amount [shall not exceed 25 percent] for violations under
    subsection (a)(1) shall not exceed 25 percent, and for
    violations under subsection (a)(2) shall be not less than 5
    percent, but not more than 25 percent, of the fair market
    value, on the date of the assessment of such penalty, of the
    interest in agricultural land with respect to which such
    violation occurred.
      (d) Public Disclosure of Enforcement Actions.--The Secretary
    shall publicly disclose the name of each person who paid to the
    Secretary a civil penalty imposed under subsection (a),
    including, if applicable, after the completion of an appeal of
    a civil penalty.
      (e) Outreach.--Using existing resources and efforts to the
    maximum extent practicable, the Secretary shall carry out a
    nationwide outreach program directed primarily toward
    landlords, operators, owners, persons, producers, and tenants
    (as those terms are defined in section 718.2 of title 7, Code
    of Federal Regulations (as in effect on the date of enactment
    of the Farm, Food, and National Security Act of 2026)) of
    agricultural land and county property appraiser offices, land
    appraisal companies, and real estate auction companies to
    increase public awareness and provide education regarding the
    reporting requirements under this Act.

                             [investigative actions

      [Sec. 4. The Secretary may take such actions as the Secretary
    considers necessary to monitor compliance with the provisions
    of this Act and to determine whether the information contained
    in any report submitted under section 2 accurately and fully
    reveals the ownership interest of all foreign persons in an
    foreign person who is required to submit a report under such
    section.]

    SEC. 4. INVESTIGATIVE ACTIONS.

      (a) In General.--The Secretary shall appoint an employee in
    the Senior Executive Service (as described in section 3131 of
    title 5, United States Code) of the Department of Agriculture
    to serve as Chief of Operations of Investigative Actions
    (referred to in this section as the ``Chief of Operations''),
    who shall hire, appoint, and maintain additional employees to
    monitor compliance with the provisions of this Act.
      (b) Chief of Operations.--The Chief of Operations may serve
    in such position simultaneously with a concurrent position
    within the Department of Agriculture.
      (c) Security.--The Secretary shall--
              (1) provide classified storage, meeting, and other
            spaces, as necessary, for personnel of the Chief of
            Operations; and
              (2) assist such personnel in obtaining security
            clearances.
      (d) Duties.--The Chief of Operations shall--
              (1) monitor compliance with this Act;
              (2) refer noncompliance with this Act to the
            Secretary, the Farm Service Agency, and any other
            appropriate authority;
              (3) conduct investigations, in coordination with the
            Department of Justice, the Federal Bureau of
            Investigation, the Department of Homeland Security, the
            Department of the Treasury, the National Security
            Council, and State and local law enforcement agencies,
            on malign efforts--
                      (A) to steal agricultural knowledge and
                    technology; or
                      (B) to disrupt the United States agricultural
                    base;
              (4) conduct an annual audit of the database developed
            under section 12304(b) of the Farm, Food, and National
            Security Act of 2026;
              (5) seek to enter into memoranda of agreement and
            memoranda of understanding with the Federal agencies
            described in paragraph (3)--
                      (A) to ensure compliance with this Act; and
                      (B) to prevent the malign efforts described
                    in that paragraph;
              (6) refer to the Committee on Foreign Investment in
            the United States transactions that--
                      (A) raise potential national security
                    concerns; and
                      (B) result in agricultural land acquisition
                    by a foreign person that is a citizen of, or
                    headquartered in, as applicable, a foreign
                    entity of concern; and
              (7) publish annual reports that summarize the
            information contained in every report received by the
            Secretary under section 2 during the period covered by
            the report.
      (e) Administration.--The Chief of Operations shall report
    to--
              (1) the Secretary; or
              (2) if delegated by the Secretary, to--
                      (A) the Administrator of the Farm Service
                    Agency; or
                      (B) the Director of the Department of
                    Agriculture Office of Homeland Security.

               *       *       *       *       *       *       *

                                  definitions

      Sec. 9. [For purposes of this Act--] In this Act:
              (1) Agricultural land._[the term] The term
            ``agricultural land'' means any land located in one or
            more States and used for agricultural, forestry, or
            timber production purposes as determined by the
            Secretary under regulations to be prescribed by the
            Secretary[;].
              (2) Foreign entity of concern.--The term ``foreign
            entity of concern'' has the meaning given the term in
            section 9901 of the William M. (Mac) Thornberry
            National Defense Authorization Act for Fiscal Year 2021
            (15 U.S.C. 4651).
              [(2)] (3) Foreign government._[the term] The term
            ``foreign government'' means any government other than
            the Federal Government or any government of a State or
            a political subdivision of a State[;].
              [(3)] (4) Foreign person._[the term] The term
            ``foreign person'' means--
                      (A) any individual--
                              (i) who is not a citizen or national
                            of the United States;
                              (ii) who is not a citizen of the
                            Northern Mariana Islands or the Trust
                            Territory of the Pacific Islands; or
                              (iii) who is not lawfully admitted to
                            the United States for permanent
                            residence, or paroled into the United
                            States, under the Immigration and
                            Nationality Act;
                      (B) any person, other than an individual or a
                    government, which is created or organized under
                    the laws of a foreign government or which has
                    its principal place of business located outside
                    of all the States;
                      (C) any person, other than an individual or a
                    government--
                              (i) which is created or organized
                            under the laws of any State; and
                              (ii) in which, as determined by the
                            Secretary under regulations which the
                            Secretary shall prescribe, a
                            significant interest or substantial
                            control is directly or indirectly
                            held--
                                      (I) by any individual
                                    referred to in subparagraph
                                    (A);
                                      (II) by any person referred
                                    to in subparagraph (B);
                                      (III) by any foreign
                                    government; or
                                      (IV) by any combination of
                                    such individuals, persons, or
                                    governments; and
                      (D) any foreign government[;].
              (5) Malign effort.--The term ``malign effort'' means
            any hostile effort undertaken by, at the direction of,
            on behalf of, or with the substantial support of the
            government of a foreign entity of concern.
              [(4)] (6) Person._[the term] The term ``person''
            includes any individual, corporation, company,
            association, firm, partnership, society, joint stock
            company, trust, estate, or any other legal entity[;].
              [(5)] (7) Secretary._[the term] The term
            ``Secretary'' means the Secretary of Agriculture[;
            and].
              [(6)] (8) State._[the term] The term ``State'' means
            any of the several States, the District of Columbia,
            the Commonwealth of Puerto Rico, the Northern Mariana
            Islands, Guam, the Virgin Islands, American Samoa, the
            Trust Territory of the Pacific Islands, or any other
            territory or possession of the United States.

               *       *       *       *       *       *       *

                                  ----------

                     CONSOLIDATED APPROPRIATIONS ACT, 2023

               *       *       *       *       *       *       *

                  DIVISION A--AGRICULTURE, RURAL DEVELOPMENT,
              FOOD AND DRUG ADMINISTRATION, AND RELATED AGENCIES
                            APPROPRIATIONS ACT, 2023

               *       *       *       *       *       *       *

                         TITLE VII--GENERAL PROVISIONS

                (including rescissions and transfers of funds)

               *       *       *       *       *       *       *

      [Sec. 773.  The Secretary, as part of the report on foreign
    landholding required under the Agricultural Foreign Investment
    Disclosure Act (Public Law 95-460), shall report to Congress on
    foreign investments in agricultural land in the United States,
    including the impact foreign ownership has on family farms,
    rural communities, and the domestic food supply:  Provided,
    That within 3 years after the enactment of this Act, the
    Secretary shall establish a streamlined process for electronic
    submission and retention of disclosures made under the
    Agricultural Foreign Investment Disclosure Act, including an
    internet database that contains disaggregated data from each
    disclosure submitted:  Provided further, That all prior year
    disclosures of foreign investments in agricultural land in the
    United States are published in the database:  Provided further,
    That the plan includes a process to ensure the protection of
    personally identifiable information and that all disclosures of
    foreign investments in agricultural land on the USDA website be
    disaggregated by: (1) in any case in which such foreign person
    is an individual, the citizenship of such foreign person; and
    (2) in any case in which such foreign person is not an
    individual or a government, the nature of the legal entity
    holding the interest, the country in which such foreign person
    is created or organized, and the principal place of business of
    such foreign person.]

               *       *       *       *       *       *       *

                                  ----------

                         DEFENSE PRODUCTION ACT OF 1950

               *       *       *       *       *       *       *

                         TITLE VII--GENERAL PROVISIONS

               *       *       *       *       *       *       *

        authority to review certain mergers, acquisitions, and takeovers

      Sec. 721. (a) Definitions.--For purposes of this section, the
    following definitions shall apply:
              (1) Clarification.--The term ``national security''
            shall be construed so as to include those issues
            relating to ``homeland security'', including its
            application to critical infrastructure.
              (2) Committee; chairperson.--The terms ``Committee''
            and ``chairperson'' mean the Committee on Foreign
            Investment in the United States and the chairperson
            thereof, respectively.
              (3) Control.--The term ``control'' means the power,
            direct or indirect, whether exercised or not exercised,
            to determine, direct, or decide important matters
            affecting an entity, subject to regulations prescribed
            by the Committee.
              (4) Covered transaction.--
                      (A) In general.--Except as otherwise
                    provided, the term ``covered transaction''
                    means--
                              (i) any transaction described in
                            subparagraph (B)(i); and
                              (ii) any transaction described in
                            clauses (ii) through (v) of
                            subparagraph (B) that is proposed,
                            pending, or completed on or after the
                            effective date set forth in section
                            1727 of the Foreign Investment Risk
                            Review Modernization Act of 2018.
                      (B) Transactions described.--A transaction
                    described in this subparagraph is any of the
                    following:
                              (i) Any merger, acquisition, or
                            takeover that is proposed or pending
                            after August 23, 1988, by or with any
                            foreign person that could result in
                            foreign control of any United States
                            business, including such a merger,
                            acquisition, or takeover carried out
                            through a joint venture.
                              (ii) Subject to subparagraphs (C) and
                            (E), the purchase or lease by, or a
                            concession to, a foreign person of
                            private or public real estate that--
                                      (I) is located in the United
                                    States;
                                      (II)(aa) is, is located
                                    within, or will function as
                                    part of, an air or maritime
                                    port; or
                                      (bb)(AA) is in close
                                    proximity to a United States
                                    military installation or
                                    another facility or property of
                                    the United States Government
                                    that is sensitive for reasons
                                    relating to national security;
                                              (BB) could reasonably
                                            provide the foreign
                                            person the ability to
                                            collect intelligence on
                                            activities being
                                            conducted at such an
                                            installation, facility,
                                            or property; or
                                              (CC) could otherwise
                                            expose national
                                            security activities at
                                            such an installation,
                                            facility, or property
                                            to the risk of foreign
                                            surveillance; and
                                      (III) meets such other
                                    criteria as the Committee
                                    prescribes by regulation,
                                    except that such criteria may
                                    not expand the categories of
                                    real estate to which this
                                    clause applies beyond the
                                    categories described in
                                    subclause (II).
                              (iii) Any other investment, subject
                            to regulations prescribed under
                            subparagraphs (D) and (E), by a foreign
                            person in any unaffiliated United
                            States business that--
                                      (I) owns, operates,
                                    manufactures, supplies, or
                                    services critical
                                    infrastructure;
                                      (II) produces, designs,
                                    tests, manufactures,
                                    fabricates, or develops one or
                                    more critical technologies; or
                                      (III) maintains or collects
                                    sensitive personal data of
                                    United States citizens that may
                                    be exploited in a manner that
                                    threatens national security.
                              (iv) Any change in the rights that a
                            foreign person has with respect to a
                            United States business in which the
                            foreign person has an investment, if
                            that change could result in--
                                      (I) foreign control of the
                                    United States business; or
                                      (II) an investment described
                                    in clause (iii).
                              (v) Any other transaction, transfer,
                            agreement, or arrangement, the
                            structure of which is designed or
                            intended to evade or circumvent the
                            application of this section, subject to
                            regulations prescribed by the
                            Committee.
                      (C) Real estate transactions.--
                              (i) Exception for certain real estate
                            transactions.--A real estate purchase,
                            lease, or concession described in
                            subparagraph (B)(ii) does not include a
                            purchase, lease, or concession of--
                                      (I) a single ``housing
                                    unit'', as defined by the
                                    Census Bureau; or
                                      (II) real estate in
                                    ``urbanized areas'', as defined
                                    by the Census Bureau in the
                                    most recent census, except as
                                    otherwise prescribed by the
                                    Committee in regulations in
                                    consultation with the Secretary
                                    of Defense.
                              (ii) Definition of close proximity.--
                            With respect to a real estate purchase,
                            lease, or concession described in
                            subparagraph (B)(ii)(II)(bb)(AA), the
                            Committee shall prescribe regulations
                            to ensure that the term ``close
                            proximity'' refers only to a distance
                            or distances within which the purchase,
                            lease, or concession of real estate
                            could pose a national security risk in
                            connection with a United States
                            military installation or another
                            facility or property of the United
                            States Government described in that
                            subparagraph.
                              (iii) List of sites.--
                                      (I) In general.--For purposes
                                    of subparagraph
                                    (B)(ii)(II)(bb), the Committee
                                    may prescribe, through
                                    regulations, a list of military
                                    installations or other
                                    facilities or properties of the
                                    United States Government that
                                    are sensitive for reasons
                                    relating to national security.
                                    Such list may include certain
                                    facilities or properties of the
                                    intelligence community and
                                    National Laboratories (as
                                    defined in section 2 of the
                                    Energy Policy Act of 2005 (42
                                    U.S.C. 15801)).
                                      (II) Periodic review of
                                    list.--Not later than one year
                                    after the date of the enactment
                                    of this clause, and
                                    periodically thereafter, each
                                    member of the Committee shall--
                                              (aa) review the
                                            installations,
                                            facilities, and
                                            properties, if any,
                                            included by that member
                                            on the list developed
                                            under subclause (I);
                                            and
                                              (bb) submit to the
                                            chairperson a report on
                                            that review, after
                                            approval of the report
                                            by the Assistant
                                            Secretary or equivalent
                                            official designated for
                                            the agency under
                                            subsection
                                            (k)(4)(A)(i), which
                                            shall include--
                                                      (AA) any
                                                    recommended
                                                    updates or
                                                    revisions to
                                                    the list
                                                    regarding
                                                    installations,
                                                    facilities, and
                                                    properties
                                                    administered by
                                                    the member of
                                                    the Committee;
                                                      (BB) any
                                                    recommendations
                                                    with respect to
                                                    what distance,
                                                    including close
                                                    proximity or
                                                    extended range,
                                                    should apply
                                                    for purposes of
                                                    real estate
                                                    described in
                                                    subparagraph
                                                    (B)(ii)(II)(bb);
                                                     and
                                                      (CC) a
                                                    detailed
                                                    justification
                                                    and risk
                                                    assessment
                                                    underlying any
                                                    recommendations
                                                    made under
                                                    subitem (BB).
                      (D) Other investments.--
                              (i) Other investment defined.--For
                            purposes of subparagraph (B)(iii), the
                            term ``other investment'' means an
                            investment, direct or indirect, by a
                            foreign person in a United States
                            business described in that subparagraph
                            that is not an investment described in
                            subparagraph (B)(i) and that affords
                            the foreign person--
                                      (I) access to any material
                                    nonpublic technical information
                                    in the possession of the United
                                    States business;
                                      (II) membership or observer
                                    rights on the board of
                                    directors or equivalent
                                    governing body of the United
                                    States business or the right to
                                    nominate an individual to a
                                    position on the board of
                                    directors or equivalent
                                    governing body; or
                                      (III) any involvement, other
                                    than through voting of shares,
                                    in substantive decisionmaking
                                    of the United States business
                                    regarding--
                                              (aa) the use,
                                            development,
                                            acquisition,
                                            safekeeping, or release
                                            of sensitive personal
                                            data of United States
                                            citizens maintained or
                                            collected by the United
                                            States business;
                                              (bb) the use,
                                            development
                                            acquisition, or release
                                            of critical
                                            technologies; or
                                              (cc) the management,
                                            operation, manufacture,
                                            or supply of critical
                                            infrastructure.
                              (ii) Material nonpublic technical
                            information defined.--
                                      (I) In general.--For purposes
                                    of clause (i)(I), and subject
                                    to regulations prescribed by
                                    the Committee, the term
                                    ``material nonpublic technical
                                    information'' means information
                                    that--
                                              (aa) provides
                                            knowledge, know-how, or
                                            understanding, not
                                            available in the public
                                            domain, of the design,
                                            location, or operation
                                            of critical
                                            infrastructure; or
                                              (bb) is not available
                                            in the public domain,
                                            and is necessary to
                                            design, fabricate,
                                            develop, test, produce,
                                            or manufacture critical
                                            technologies, including
                                            processes, techniques,
                                            or methods.
                                      (II) Exemption for financial
                                    information.--Notwithstanding
                                    subclause (I), for purposes of
                                    this subparagraph, the term
                                    ``material nonpublic technical
                                    information'' does not include
                                    financial information regarding
                                    the performance of a United
                                    States business.
                              (iii) Regulations.--
                                      (I) In general.--The
                                    Committee shall prescribe
                                    regulations providing guidance
                                    on the types of transactions
                                    that the Committee considers to
                                    be ``other investment'' for
                                    purposes of subparagraph
                                    (B)(iii).
                                      (II) United States businesses
                                    that own, operate, manufacture,
                                    supply, or service critical
                                    infrastructure.--The
                                    regulations prescribed by the
                                    Committee with respect to an
                                    investment described in
                                    subparagraph (B)(iii)(I)
                                    shall--
                                              (aa) specify the
                                            critical infrastructure
                                            subject to that
                                            subparagraph based on
                                            criteria intended to
                                            limit application of
                                            that subparagraph to
                                            the subset of critical
                                            infrastructure that is
                                            likely to be of
                                            importance to the
                                            national security of
                                            the United States; and
                                              (bb) enumerate
                                            specific types and
                                            examples of such
                                            critical
                                            infrastructure.
                              (iv) Specific clarification for
                            investment funds.--
                                      (I) Treatment of certain
                                    investment fund investments.--
                                    Notwithstanding clause (i)(II)
                                    and subject to regulations
                                    prescribed by the Committee, an
                                    indirect investment by a
                                    foreign person in a United
                                    States business described in
                                    subparagraph (B)(iii) through
                                    an investment fund that affords
                                    the foreign person (or a
                                    designee of the foreign person)
                                    membership as a limited partner
                                    or equivalent on an advisory
                                    board or a committee of the
                                    fund shall not be considered an
                                    ``other investment'' for
                                    purposes of subparagraph
                                    (B)(iii) if--
                                              (aa) the fund is
                                            managed exclusively by
                                            a general partner, a
                                            managing member, or an
                                            equivalent;
                                              (bb) the general
                                            partner, managing
                                            member, or equivalent
                                            is not a foreign
                                            person;
                                              (cc) the advisory
                                            board or committee does
                                            not have the ability to
                                            approve, disapprove, or
                                            otherwise control--
                                                      (AA)
                                                    investment
                                                    decisions of
                                                    the fund; or
                                                      (BB)
                                                    decisions made
                                                    by the general
                                                    partner,
                                                    managing
                                                    member, or
                                                    equivalent
                                                    related to
                                                    entities in
                                                    which the fund
                                                    is invested;
                                              (dd) the foreign
                                            person does not
                                            otherwise have the
                                            ability to control the
                                            fund, including the
                                            authority--
                                                      (AA) to
                                                    approve,
                                                    disapprove, or
                                                    otherwise
                                                    control
                                                    investment
                                                    decisions of
                                                    the fund;
                                                      (BB) to
                                                    approve,
                                                    disapprove, or
                                                    otherwise
                                                    control
                                                    decisions made
                                                    by the general
                                                    partner,
                                                    managing
                                                    member, or
                                                    equivalent
                                                    related to
                                                    entities in
                                                    which the fund
                                                    is invested; or
                                                      (CC) to
                                                    unilaterally
                                                    dismiss,
                                                    prevent the
                                                    dismissal of,
                                                    select, or
                                                    determine the
                                                    compensation of
                                                    the general
                                                    partner,
                                                    managing
                                                    member, or
                                                    equivalent;
                                              (ee) the foreign
                                            person does not have
                                            access to material
                                            nonpublic technical
                                            information as a result
                                            of its participation on
                                            the advisory board or
                                            committee; and
                                              (ff) the investment
                                            otherwise meets the
                                            requirements of this
                                            subparagraph.
                                      (II) Treatment of certain
                                    waivers.--
                                              (aa) In general.--For
                                            the purposes of items
                                            (cc) and (dd) of
                                            subclause (I) and
                                            except as provided in
                                            item (bb), a waiver of
                                            a potential conflict of
                                            interest, a waiver of
                                            an allocation
                                            limitation, or a
                                            similar activity,
                                            applicable to a
                                            transaction pursuant to
                                            the terms of an
                                            agreement governing an
                                            investment fund shall
                                            not be considered to
                                            constitute control of
                                            investment decisions of
                                            the fund or decisions
                                            relating to entities in
                                            which the fund is
                                            invested.
                                              (bb) Exception.--The
                                            Committee may prescribe
                                            regulations providing
                                            for exceptions to item
                                            (aa) for extraordinary
                                            circumstances.
                              (v) Exception for air carriers.--For
                            purposes of subparagraph (B)(iii), the
                            term ``other investment'' does not
                            include an investment involving an air
                            carrier, as defined in section
                            40102(a)(2) of title 49, United States
                            Code, that holds a certificate issued
                            under section 41102 of that title.
                              (vi) Rule of construction.--Any
                            definition of ``critical
                            infrastructure'' established under any
                            provision of law other than this
                            section shall not be determinative for
                            purposes of this section.
                      (E) Country specification.--The Committee
                    shall prescribe regulations that further define
                    the term ``foreign person'' for purposes of
                    clauses (ii) and (iii) of subparagraph (B). In
                    prescribing such regulations, the Committee
                    shall specify criteria to limit the application
                    of such clauses to the investments of certain
                    categories of foreign persons. Such criteria
                    shall take into consideration how a foreign
                    person is connected to a foreign country or
                    foreign government, and whether the connection
                    may affect the national security of the United
                    States.
                      (F) Transfers of certain assets pursuant to
                    bankruptcy proceedings or other defaults.--The
                    Committee shall prescribe regulations to
                    clarify that the term ``covered transaction''
                    includes any transaction described in
                    subparagraph (B) that arises pursuant to a
                    bankruptcy proceeding or other form of default
                    on debt.
              (5) Critical infrastructure.--The term ``critical
            infrastructure'' means, subject to regulations
            prescribed by the Committee, systems and assets,
            whether physical or virtual, so vital to the United
            States that the incapacity or destruction of such
            systems or assets would have a debilitating impact on
            national security.
              (6) Critical technologies.--
                      (A) In general.--The term ``critical
                    technologies'' means the following:
                              (i) Defense articles or defense
                            services included on the United States
                            Munitions List set forth in the
                            International Traffic in Arms
                            Regulations under subchapter M of
                            chapter I of title 22, Code of Federal
                            Regulations.
                              (ii) Items included on the Commerce
                            Control List set forth in Supplement
                            No. 1 to part 774 of the Export
                            Administration Regulations under
                            subchapter C of chapter VII of title
                            15, Code of Federal Regulations, and
                            controlled--
                                      (I) pursuant to multilateral
                                    regimes, including for reasons
                                    relating to national security,
                                    chemical and biological weapons
                                    proliferation, nuclear
                                    nonproliferation, or missile
                                    technology; or
                                      (II) for reasons relating to
                                    regional stability or
                                    surreptitious listening.
                              (iii) Specially designed and prepared
                            nuclear equipment, parts and
                            components, materials, software, and
                            technology covered by part 810 of title
                            10, Code of Federal Regulations
                            (relating to assistance to foreign
                            atomic energy activities).
                              (iv) Nuclear facilities, equipment,
                            and material covered by part 110 of
                            title 10, Code of Federal Regulations
                            (relating to export and import of
                            nuclear equipment and material).
                              (v) Select agents and toxins covered
                            by part 331 of title 7, Code of Federal
                            Regulations, part 121 of title 9 of
                            such Code, or part 73 of title 42 of
                            such Code.
                              (vi) Emerging and foundational
                            technologies controlled pursuant to
                            section 1758 of the Export Control
                            Reform Act of 2018.
                      (B) Recommendations.--
                              (i) In general.--The chairperson may
                            recommend technologies for
                            identification under the interagency
                            process set forth in section 1758(a) of
                            the Export Control Reform Act of 2018.
                              (ii) Matters informing
                            recommendations.--Recommendations by
                            the chairperson under clause (i) shall
                            draw upon information arising from
                            reviews and investigations conducted
                            under subsection (b), notices submitted
                            under subsection (b)(1)(C)(i),
                            declarations filed under subsection
                            (b)(1)(C)(v), and non-notified and non-
                            declared transactions identified under
                            subsection (b)(1)(H).
              (7) Foreign government-controlled transaction.--The
            term ``foreign government-controlled transaction''
            means any covered transaction that could result in the
            control of any United States business by a foreign
            government or an entity controlled by or acting on
            behalf of a foreign government.
              (8) Intelligence community.--The term ``intelligence
            community'' has the meaning given that term in section
            3(4) of the National Security Act of 1947 (50 U.S.C.
            3003(4)).
              (9) Investment.--The term ``investment'' means the
            acquisition of equity interest, including contingent
            equity interest, as further defined in regulations
            prescribed by the Committee.
              (10) Lead agency.--The term ``lead agency'' means the
            agency or agencies designated as the lead agency or
            agencies pursuant to subsection (k)(5).
              (11) Party.--The term ``party'' has the meaning given
            that term in regulations prescribed by the Committee.
              (12) United states.--The term ``United States'' means
            the several States, the District of Columbia, and any
            territory or possession of the United States.
              (13) United States business.--The term ``United
            States business'' means a person engaged in interstate
            commerce in the United States.
      (b) National Security Reviews and Investigations.--
              (1) National security reviews.--
                      (A) In general.--Upon receiving written
                    notification under subparagraph (C) of any
                    covered transaction, or pursuant to a
                    unilateral notification initiated under
                    subparagraph (D) with respect to any covered
                    transaction, the President, acting through the
                    Committee--
                              (i) shall review the covered
                            transaction to determine the effects of
                            the transaction on the national
                            security of the United States; and
                              (ii) shall consider the factors
                            specified in subsection (f) for such
                            purpose, as appropriate.
                      (B) Control by foreign government.--If the
                    Committee determines that the covered
                    transaction is a foreign government-controlled
                    transaction, the Committee shall conduct an
                    investigation of the transaction under
                    paragraph (2).
                      (C) Written notice.--
                              (i) In general.--
                                      (I) In general.--Any party or
                                    parties to any covered
                                    transaction may initiate a
                                    review of the transaction under
                                    this paragraph by submitting a
                                    written notice of the
                                    transaction to the Chairperson
                                    of the Committee.
                                      (II) Comments and
                                    acceptance.--
                                              (aa) In general.--
                                            Subject to item (cc),
                                            the Committee shall
                                            provide comments on a
                                            draft or formal written
                                            notice or accept a
                                            formal written notice
                                            submitted under
                                            subclause (I) with
                                            respect to a covered
                                            transaction not later
                                            than the date that is
                                            10 business days after
                                            the date of submission
                                            of the draft or formal
                                            written notice.
                                              (bb) Completeness.--
                                            If the Committee
                                            determines that a draft
                                            or formal written
                                            notice described in
                                            item (aa) is not
                                            complete, the Committee
                                            shall notify the party
                                            or parties to the
                                            transaction in writing
                                            that the notice is not
                                            complete and provide an
                                            explanation of all
                                            material respects in
                                            which the notice is
                                            incomplete.
                                              (cc) Stipulations
                                            required.--The timing
                                            requirement under item
                                            (aa) shall apply only
                                            in a case in which the
                                            parties stipulate under
                                            clause (vi) that the
                                            transaction is a
                                            covered transaction.
                              (ii) Withdrawal of notice.--No
                            covered transaction for which a notice
                            was submitted under clause (i) may be
                            withdrawn from review, unless a written
                            request for such withdrawal is
                            submitted to the Committee by any party
                            to the transaction and approved by the
                            Committee.
                              (iii) Continuing discussions.--A
                            request for withdrawal under clause
                            (ii) shall not be construed to preclude
                            any party to the covered transaction
                            from continuing informal discussions
                            with the Committee or any member
                            thereof regarding possible resubmission
                            for review pursuant to this paragraph.
                              (iv) Inclusion of partnership and
                            side agreements.--The Committee may
                            require a written notice submitted
                            under clause (i) to include a copy of
                            any partnership agreements, integration
                            agreements, or other side agreements
                            relating to the transaction, as
                            specified in regulations prescribed by
                            the Committee.
                              (v) Declarations for certain covered
                            transactions.--
                                      (I) In general.--A party to
                                    any covered transaction may
                                    submit to the Committee a
                                    declaration with basic
                                    information regarding the
                                    transaction instead of a
                                    written notice under clause
                                    (i).
                                      (II) Regulations.--The
                                    Committee shall prescribe
                                    regulations establishing
                                    requirements for declarations
                                    submitted under this clause. In
                                    prescribing such regulations,
                                    the Committee shall ensure that
                                    such declarations are submitted
                                    as abbreviated notifications
                                    that would not generally exceed
                                    5 pages in length.
                                      (III) Committee response to
                                    declaration.--
                                              (aa) In general.--
                                            Upon receiving a
                                            declaration under this
                                            clause with respect to
                                            a covered transaction,
                                            the Committee may, at
                                            the discretion of the
                                            Committee--
                                                      (AA) request
                                                    that the
                                                    parties to the
                                                    transaction
                                                    file a written
                                                    notice under
                                                    clause (i);
                                                      (BB) inform
                                                    the parties to
                                                    the transaction
                                                    that the
                                                    Committee is
                                                    not able to
                                                    complete action
                                                    under this
                                                    section with
                                                    respect to the
                                                    transaction on
                                                    the basis of
                                                    the declaration
                                                    and that the
                                                    parties may
                                                    file a written
                                                    notice under
                                                    clause (i) to
                                                    seek written
                                                    notification
                                                    from the
                                                    Committee that
                                                    the Committee
                                                    has completed
                                                    all action
                                                    under this
                                                    section with
                                                    respect to the
                                                    transaction;
                                                      (CC) initiate
                                                    a unilateral
                                                    review of the
                                                    transaction
                                                    under
                                                    subparagraph
                                                    (D); or
                                                      (DD) notify
                                                    the parties in
                                                    writing that
                                                    the Committee
                                                    has completed
                                                    all action
                                                    under this
                                                    section with
                                                    respect to the
                                                    transaction.
                                              (bb) Timing.--The
                                            Committee shall take
                                            action under item (aa)
                                            not later than 30 days
                                            after receiving a
                                            declaration under this
                                            clause.
                                              (cc) Rule of
                                            construction.--Nothing
                                            in this subclause
                                            (other than item
                                            (aa)(CC)) shall be
                                            construed to affect the
                                            authority of the
                                            President or the
                                            Committee to take any
                                            action authorized by
                                            this section with
                                            respect to a covered
                                            transaction.
                                      (IV) Mandatory
                                    declarations.--
                                              (aa) Regulations.--
                                            The Committee shall
                                            prescribe regulations
                                            specifying the types of
                                            covered transactions
                                            for which the Committee
                                            requires a declaration
                                            under this subclause.
                                              (bb) Certain covered
                                            transactions with
                                            foreign government
                                            interests.--
                                                      (AA) In
                                                    general.--
                                                    Except as
                                                    provided in
                                                    subitem (BB),
                                                    the parties to
                                                    a covered
                                                    transaction
                                                    shall submit a
                                                    declaration
                                                    described in
                                                    subclause (I)
                                                    with respect to
                                                    the transaction
                                                    if the
                                                    transaction
                                                    involves an
                                                    investment that
                                                    results in the
                                                    acquisition,
                                                    directly or
                                                    indirectly, of
                                                    a substantial
                                                    interest in a
                                                    United States
                                                    business
                                                    described in
                                                    subsection
                                                    (a)(4)(B)(iii)
                                                    by a foreign
                                                    person in which
                                                    a foreign
                                                    government has,
                                                    directly or
                                                    indirectly, a
                                                    substantial
                                                    interest.
                                                      (BB)
                                                    Substantial
                                                    interest
                                                    defined.--In
                                                    this item, the
                                                    term
                                                    ``substantial
                                                    interest'' has
                                                    the meaning
                                                    given that term
                                                    in regulations
                                                    which the
                                                    Committee shall
                                                    prescribe. In
                                                    developing
                                                    those
                                                    regulations,
                                                    the Committee
                                                    shall consider
                                                    the means by
                                                    which a foreign
                                                    government
                                                    could influence
                                                    the actions of
                                                    a foreign
                                                    person,
                                                    including
                                                    through board
                                                    membership,
                                                    ownership
                                                    interest, or
                                                    shareholder
                                                    rights. An
                                                    interest that
                                                    is excluded
                                                    under
                                                    subparagraph
                                                    (D) of
                                                    subsection
                                                    (a)(4) from the
                                                    term ``other
                                                    investment'' as
                                                    used in
                                                    subparagraph
                                                    (B)(iii) of
                                                    that subsection
                                                    or that is less
                                                    than a 10
                                                    percent voting
                                                    interest shall
                                                    not be
                                                    considered a
                                                    substantial
                                                    interest.
                                                      (CC)
                                                    Waiver.--The
                                                    Committee may
                                                    waive, with
                                                    respect to a
                                                    foreign person,
                                                    the requirement
                                                    under subitem
                                                    (AA) for the
                                                    submission of a
                                                    declaration
                                                    described in
                                                    subclause (I)
                                                    if the
                                                    Committee
                                                    determines that
                                                    the foreign
                                                    person
                                                    demonstrates
                                                    that the
                                                    investments of
                                                    the foreign
                                                    person are not
                                                    directed by a
                                                    foreign
                                                    government and
                                                    the foreign
                                                    person has a
                                                    history of
                                                    cooperation
                                                    with the
                                                    Committee.
                                              (cc) Other
                                            declarations required
                                            by committee.--The
                                            Committee may require
                                            the submission of a
                                            declaration described
                                            in subclause (I) with
                                            respect to any covered
                                            transaction identified
                                            under regulations
                                            prescribed by the
                                            Committee for purposes
                                            of this item, at the
                                            discretion of the
                                            Committee, that
                                            involves a United
                                            States business
                                            described in subsection
                                            (a)(4)(B)(iii)(II).
                                              (dd) Exception.--The
                                            submission of a
                                            declaration described
                                            in subclause (I) shall
                                            not be required
                                            pursuant to this
                                            subclause with respect
                                            to an investment by an
                                            investment fund if--
                                                      (AA) the fund
                                                    is managed
                                                    exclusively by
                                                    a general
                                                    partner, a
                                                    managing
                                                    member, or an
                                                    equivalent;
                                                      (BB) the
                                                    general
                                                    partner,
                                                    managing
                                                    member, or
                                                    equivalent is
                                                    not a foreign
                                                    person; and
                                                      (CC) the
                                                    investment fund
                                                    satisfies, with
                                                    respect to any
                                                    foreign person
                                                    with membership
                                                    as a limited
                                                    partner on an
                                                    advisory board
                                                    or a committee
                                                    of the fund,
                                                    the criteria
                                                    specified in
                                                    items (cc) and
                                                    (dd) of
                                                    subsection
                                                    (a)(4)(D)(iv).
                                              (ee) Submission of
                                            written notice as an
                                            alternative.--Parties
                                            to a covered
                                            transaction for which a
                                            declaration is required
                                            under this subclause
                                            may instead elect to
                                            submit a written notice
                                            under clause (i).
                                              (ff) Timing and
                                            refiling of
                                            submission.--
                                                      (AA) In
                                                    general.--In
                                                    the regulations
                                                    prescribed
                                                    under item
                                                    (aa), the
                                                    Committee may
                                                    not require a
                                                    declaration to
                                                    be submitted
                                                    under this
                                                    subclause with
                                                    respect to a
                                                    covered
                                                    transaction
                                                    more than 45
                                                    days before the
                                                    completion of
                                                    the
                                                    transaction.
                                                      (BB) Refiling
                                                    of
                                                    declaration.--Th
                                                    e Committee may
                                                    not request or
                                                    recommend that
                                                    a declaration
                                                    submitted under
                                                    this subclause
                                                    be withdrawn
                                                    and refiled,
                                                    except to
                                                    permit parties
                                                    to a covered
                                                    transaction to
                                                    correct
                                                    material errors
                                                    or omissions in
                                                    the declaration
                                                    submitted with
                                                    respect to that
                                                    transaction.
                                              (gg) Penalties.--The
                                            Committee may impose a
                                            penalty pursuant to
                                            subsection (h)(3) with
                                            respect to a party that
                                            fails to comply with
                                            this subclause.
                              (vi) Stipulations regarding
                            transactions.--
                                      (I) In general.--In a written
                                    notice submitted under clause
                                    (i) or a declaration submitted
                                    under clause (v) with respect
                                    to a transaction, a party to
                                    the transaction may--
                                              (aa) stipulate that
                                            the transaction is a
                                            covered transaction;
                                            and
                                              (bb) if the party
                                            stipulates that the
                                            transaction is a
                                            covered transaction
                                            under item (aa),
                                            stipulate that the
                                            transaction is a
                                            foreign government-
                                            controlled transaction.
                                      (II) Basis for stipulation.--
                                    A written notice submitted
                                    under clause (i) or a
                                    declaration submitted under
                                    clause (v) that includes a
                                    stipulation under subclause (I)
                                    shall include a description of
                                    the basis for the stipulation.
                      (D) Unilateral initiation of review.--Subject
                    to subparagraph (G), the President or the
                    Committee may initiate a review under
                    subparagraph (A) of--
                              (i) any covered transaction (other
                            than a covered transaction described in
                            subparagraph (E));
                              (ii) any covered transaction
                            described in subparagraph (E), if any
                            party to the transaction submitted
                            false or misleading material
                            information to the Committee in
                            connection with the Committee's
                            consideration of the transaction or
                            omitted material information, including
                            material documents, from information
                            submitted to the Committee; or
                              (iii) any covered transaction
                            described in subparagraph (E), if--
                                      (I) any party to the
                                    transaction or the entity
                                    resulting from consummation of
                                    the transaction materially
                                    breaches a mitigation agreement
                                    or condition described in
                                    subsection (l)(3)(A);
                                      (II) such breach is certified
                                    to the Committee by the lead
                                    department or agency monitoring
                                    and enforcing such agreement or
                                    condition as a material breach;
                                    and
                                      (III) the Committee
                                    determines that there are no
                                    other adequate and appropriate
                                    remedies or enforcement tools
                                    available to address such
                                    breach.
                      (E) Covered transactions described.--A
                    covered transaction is described in this
                    subparagraph if--
                              (i) the Committee has informed the
                            parties to the transaction in writing
                            that the Committee has completed all
                            action under this section with respect
                            to the transaction; or
                              (ii) the President has announced a
                            decision not to exercise the
                            President's authority under subsection
                            (d) with respect to the transaction.
                      (F) Timing.--Any review under this paragraph
                    shall be completed before the end of the 45-day
                    period beginning on the date of the acceptance
                    of written notice under subparagraph (C) by the
                    chairperson, or beginning on the date of the
                    initiation of the review in accordance with
                    subparagraph (D), as applicable.
                      (G) Limit on delegation of certain
                    authority.--The authority of the Committee to
                    initiate a review under subparagraph (D) may
                    not be delegated to any person, other than the
                    Deputy Secretary or an appropriate Under
                    Secretary of the department or agency
                    represented on the Committee.
                      (H) Identification of non-notified and non-
                    declared transactions.--The Committee shall
                    establish a process to identify covered
                    transactions for which--
                              (i) a notice under clause (i) of
                            subparagraph (C) or a declaration under
                            clause (v) of that subparagraph is not
                            submitted to the Committee; and
                              (ii) information is reasonably
                            available.
                      (I) Consideration of certain agricultural
                    land transactions.--
                              (i) In general.--After receiving
                            notification from the Secretary of
                            Agriculture of a reportable
                            agricultural land transaction, the
                            Committee shall determine--
                                      (I) whether the transaction
                                    is a covered transaction; and
                                      (II) if the Committee
                                    determines that the transaction
                                    is a covered transaction,
                                    whether the Committee should
                                    initiate a review pursuant to
                                    subparagraph (D), or take
                                    another action authorized under
                                    this section, with respect to
                                    the reportable agricultural
                                    land transaction.
                              (ii) Reportable agricultural land
                            transaction.--In this subparagraph, the
                            term ``reportable agricultural land
                            transaction'' means a transaction--
                                      (I) that the Secretary of
                                    Agriculture has reason to
                                    believe is a covered
                                    transaction, based on
                                    information from or in
                                    cooperation with the
                                    intelligence community;
                                      (II) that involves the
                                    acquisition of an interest in
                                    agricultural land by a foreign
                                    person of the People's Republic
                                    of China, the Democratic
                                    People's Republic of Korea, the
                                    Russian Federation, or the
                                    Islamic Republic of Iran; and
                                      (III) with respect to which a
                                    person is required to submit a
                                    report to the Secretary of
                                    Agriculture under section 2(a)
                                    of the Agricultural Foreign
                                    Investment Disclosure Act of
                                    1978.
                              (iii) Sunset.--The requirements under
                            this subparagraph shall terminate, with
                            respect to a foreign person of the
                            respective foreign country, on the date
                            that the People's Republic of China,
                            the Democratic People's Republic of
                            Korea, the Russian Federation, or the
                            Islamic Republic of Iran, as the case
                            may be, is removed from the list of
                            foreign adversaries in section 791.4 of
                            title 15, Code of Federal Regulations.
              (2) National security investigations.--
                      (A) In general.--In each case described in
                    subparagraph (B), the Committee shall
                    immediately conduct an investigation of the
                    effects of a covered transaction on the
                    national security of the United States, and
                    take any necessary actions in connection with
                    the transaction to protect the national
                    security of the United States.
                      (B) Applicability.--Subparagraph (A) shall
                    apply in each case in which--
                              (i) a review of a covered transaction
                            under paragraph (1) results in a
                            determination that--
                                      (I) the transaction threatens
                                    to impair the national security
                                    of the United States and the
                                    risk has not been mitigated
                                    during or prior to the review
                                    of a covered transaction under
                                    paragraph (1);
                                      (II) the transaction is a
                                    foreign government-controlled
                                    transaction; or
                                      (III) the transaction would
                                    result in control of any
                                    critical infrastructure of or
                                    within the United States by or
                                    on behalf of any foreign
                                    person, if the Committee
                                    determines that the transaction
                                    could impair national security,
                                    and that such impairment to
                                    national security has not been
                                    mitigated by assurances
                                    provided or renewed with the
                                    approval of the Committee, as
                                    described in subsection (l),
                                    during the review period under
                                    paragraph (1); or
                              (ii) the lead agency recommends, and
                            the Committee concurs, that an
                            investigation be undertaken.
                      (C) Timing.--
                              (i) In general.--Except as provided
                            in clause (ii), any investigation under
                            subparagraph (A) shall be completed
                            before the end of the 45-day period
                            beginning on the date on which the
                            investigation commenced.
                              (ii) Extension for extraordinary
                            circumstances.--
                                      (I) In general.--In
                                    extraordinary circumstances (as
                                    defined by the Committee in
                                    regulations), the chairperson
                                    may, at the request of the head
                                    of the lead agency, extend an
                                    investigation under
                                    subparagraph (A) for one 15-day
                                    period.
                                      (II) Nondelegation.--The
                                    authority of the chairperson
                                    and the head of the lead agency
                                    referred to in subclause (I)
                                    may not be delegated to any
                                    person other than the Deputy
                                    Secretary of the Treasury or
                                    the deputy head (or equivalent
                                    thereof) of the lead agency, as
                                    the case may be.
                                      (III) Notification to
                                    parties.--If the Committee
                                    extends the deadline under
                                    subclause (I) with respect to a
                                    covered transaction, the
                                    Committee shall notify the
                                    parties to the transaction of
                                    the extension.
                      (D) Exception.--
                              (i) In general.--Notwithstanding
                            subparagraph (B)(i), an investigation
                            of a foreign government-controlled
                            transaction described in subclause (II)
                            of subparagraph (B)(i) or a transaction
                            involving critical infrastructure
                            described in subclause (III) of
                            subparagraph (B)(i) shall not be
                            required under this paragraph, if the
                            Secretary of the Treasury and the head
                            of the lead agency jointly determine,
                            on the basis of the review of the
                            transaction under paragraph (1), that
                            the transaction will not impair the
                            national security of the United States.
                              (ii) Nondelegation.--The authority of
                            the Secretary or the head of an agency
                            referred to in clause (i) may not be
                            delegated to any person, other than the
                            Deputy Secretary of the Treasury or the
                            deputy head (or the equivalent thereof)
                            of the lead agency, respectively.
                      (E) Guidance on certain transactions with
                    national security implications.--The
                    Chairperson shall, not later than 180 days
                    after the effective date of the Foreign
                    Investment and National Security Act of 2007,
                    publish in the Federal Register guidance on the
                    types of transactions that the Committee has
                    reviewed and that have presented national
                    security considerations, including transactions
                    that may constitute covered transactions that
                    would result in control of critical
                    infrastructure relating to United States
                    national security by a foreign government or an
                    entity controlled by or acting on behalf of a
                    foreign government.
              (3) Certifications to congress.--
                      (A) Certified notice at completion of review
                    or assessment.--Upon completion of a review
                    under this subsection that concludes action
                    under this section, or upon the Committee
                    making a notification under paragraph
                    (1)(C)(v)(III)(aa)(DD), the chairperson and the
                    head of the lead agency shall transmit a
                    certified notice to the members of Congress
                    specified in subparagraph (C)(iii).
                      (B) Certified report at completion of
                    investigation.--As soon as is practicable after
                    completion of an investigation under subsection
                    (b) that concludes action under this section,
                    the chairperson and the head of the lead agency
                    shall transmit to the members of Congress
                    specified in subparagraph (C)(iii) a certified
                    written report (consistent with the
                    requirements of subsection (c)) on the results
                    of the investigation, unless the matter under
                    investigation has been sent to the President
                    for decision.
                      (C) Certification procedures.--
                              (i) In general.--Each certified
                            notice and report required under
                            subparagraphs (A) and (B),
                            respectively, shall be submitted to the
                            members of Congress specified in clause
                            (iii), and shall include--
                                      (I) a description of the
                                    actions taken by the Committee
                                    with respect to the
                                    transaction;
                                      (II) a certification that all
                                    relevant national security
                                    factors have received full
                                    consideration; and
                                      (III) whether the transaction
                                    is described under clause (i),
                                    (ii), (iii), (iv), or (v) of
                                    subsection (a)(4)(B).
                              (ii) Content of certification.--Each
                            certified notice and report required
                            under subparagraphs (A) and (B),
                            respectively, shall be signed by the
                            chairperson and the head of the lead
                            agency, and shall state that, in the
                            determination of the Committee, there
                            are no unresolved national security
                            concerns with the transaction that is
                            the subject of the notice or report.
                              (iii) Members of congress.--Each
                            certified notice and report required
                            under subparagraphs (A) and (B),
                            respectively, shall be transmitted--
                                      (I) to the Majority Leader
                                    and the Minority Leader of the
                                    Senate;
                                      (II) to the chair and ranking
                                    member of the Committee on
                                    Banking, Housing, and Urban
                                    Affairs of the Senate and of
                                    any committee of the Senate
                                    having oversight over the lead
                                    agency;
                                      (III) to the Speaker and the
                                    Minority Leader of the House of
                                    Representatives;
                                      (IV) to the chair and ranking
                                    member of the Committee on
                                    Financial Services of the House
                                    of Representatives and of any
                                    committee of the House of
                                    Representatives having
                                    oversight over the lead agency;
                                    and
                                      (V) with respect to covered
                                    transactions involving critical
                                    infrastructure, to the members
                                    of the Senate from the State in
                                    which the principal place of
                                    business of the acquired United
                                    States person is located, and
                                    the member from the
                                    Congressional District in which
                                    such principal place of
                                    business is located.
                              (iv) Signatures; limit on
                            delegation.--
                                      (I) In general.--Each
                                    certified notice and report
                                    required under subparagraphs
                                    (A) and (B), respectively,
                                    shall be signed by the
                                    chairperson and the head of the
                                    lead agency, which signature
                                    requirement may only be
                                    delegated in accordance with
                                    subclause (II).
                                      (II) Delegation of
                                    certifications.--
                                              (aa) In general.--
                                            Subject to item (bb),
                                            the chairperson, in
                                            consultation with the
                                            Committee, may
                                            determine the level of
                                            official to whom the
                                            signature requirement
                                            under subclause (I) for
                                            the chairperson and the
                                            head of the lead agency
                                            may be delegated. The
                                            level of official to
                                            whom the signature
                                            requirement may be
                                            delegated may differ
                                            based on any factor
                                            relating to a
                                            transaction that the
                                            chairperson, in
                                            consultation with the
                                            Committee, deems
                                            appropriate, including
                                            the type or value of
                                            the transaction.
                                              (bb) Limitation on
                                            delegation with respect
                                            to certain
                                            transactions.--The
                                            signature requirement
                                            under subclause (I) may
                                            be delegated not below
                                            the level of the
                                            Assistant Secretary of
                                            the Treasury or an
                                            equivalent official of
                                            the lead agency.
                              (v) Authority to consolidate
                            documents.--Instead of transmitting a
                            separate certified notice or certified
                            report under subparagraph (A) or (B)
                            with respect to each covered
                            transaction, the Committee may, on a
                            monthly basis, transmit such notices
                            and reports in a consolidated document
                            to the Members of Congress specified in
                            clause (iii).
              (4) Analysis by director of national intelligence.--
                      (A) Analysis required.--
                              (i) In general.--Except as provided
                            in subparagraph (B), the Director of
                            National Intelligence shall
                            expeditiously carry out a thorough
                            analysis of any threat to the national
                            security of the United States posed by
                            any covered transaction, which shall
                            include the identification of any
                            recognized gaps in the collection of
                            intelligence relevant to the analysis.
                              (ii) Views of intelligence
                            community.--The Director shall seek and
                            incorporate into the analysis required
                            by clause (i) the views of all affected
                            or appropriate agencies of the
                            intelligence community with respect to
                            the transaction.
                              (iii) Updates.--At the request of the
                            lead agency, the Director shall update
                            the analysis conducted under clause (i)
                            with respect to a covered transaction
                            with respect to which an agreement was
                            entered into under subsection
                            (l)(3)(A).
                              (iv) Independence and objectivity.--
                            The Committee shall ensure that its
                            processes under this section preserve
                            the ability of the Director to conduct
                            analysis under clause (i) that is
                            independent, objective, and consistent
                            with all applicable directives,
                            policies, and analytic tradecraft
                            standards of the intelligence
                            community.
                      (B) Basic threat information.--
                              (i) In general.--The Director of
                            National Intelligence may provide the
                            Committee with basic information
                            regarding any threat to the national
                            security of the United States posed by
                            a covered transaction described in
                            clause (ii) instead of conducting the
                            analysis required by subparagraph (A).
                              (ii) Covered transaction described.--
                            A covered transaction is described in
                            this clause if--
                                      (I) the transaction is
                                    described in subsection
                                    (a)(4)(B)(ii);
                                      (II) the Director of National
                                    Intelligence has completed an
                                    analysis pursuant to
                                    subparagraph (A) involving each
                                    foreign person that is a party
                                    to the transaction during the
                                    12 months preceding the review
                                    or investigation of the
                                    transaction under this section;
                                    or
                                      (III) the transaction
                                    otherwise meets criteria agreed
                                    upon by the Committee and the
                                    Director for purposes of this
                                    subparagraph.
                      (C) Timing.--The analysis required under
                    subparagraph (A) shall be provided by the
                    Director of National Intelligence to the
                    Committee not later than 30 days after the date
                    on which notice of the transaction is accepted
                    by the Committee under paragraph (1)(C), but
                    such analysis may be supplemented or amended,
                    as the Director considers necessary or
                    appropriate, or upon a request for additional
                    information by the Committee. The Director may
                    begin the analysis at any time prior to
                    acceptance of the notice, in accordance with
                    otherwise applicable law.
                      (D) Interaction with intelligence
                    community.--The Director of National
                    Intelligence shall ensure that the intelligence
                    community remains engaged in the collection,
                    analysis, and dissemination to the Committee of
                    any additional relevant information that may
                    become available during the course of any
                    investigation conducted under subsection (b)
                    with respect to a transaction.
                      (E) Independent role of director.--The
                    Director of National Intelligence shall be a
                    nonvoting, ex officio member of the Committee,
                    and shall be provided with all notices received
                    by the Committee under paragraph (1)(C)
                    regarding covered transactions, but shall serve
                    no policy role on the Committee, other than to
                    provide analysis under subparagraphs (A) and
                    (C) in connection with a covered transaction.
                      (F) Assessment of operational impact.--The
                    Director may provide to the Committee an
                    assessment, separate from the analyses under
                    subparagraphs (A) and (B), of any operational
                    impact of a covered transaction on the
                    intelligence community and a description of any
                    actions that have been or will be taken to
                    mitigate any such impact.
                      (G) Submission to congress.--The Committee
                    shall submit the analysis required by
                    subparagraph (A) with respect to a covered
                    transaction to the Select Committee on
                    Intelligence of the Senate and the Permanent
                    Select Committee on Intelligence of the House
                    of Representatives upon the conclusion of
                    action under this section (other than
                    compliance plans under subsection (l)(6)) with
                    respect to the transaction.
              (5) Submission of additional information.--No
            provision of this subsection shall be construed as
            prohibiting any party to a covered transaction from
            submitting additional information concerning the
            transaction, including any proposed restructuring of
            the transaction or any modifications to any agreements
            in connection with the transaction, while any review or
            investigation of the transaction is ongoing.
              (6) Notice of results to parties.--The Committee
            shall notify the parties to a covered transaction of
            the results of a review or investigation under this
            section, promptly upon completion of all action under
            this section.
              (7) Regulations.--Regulations prescribed under this
            section shall include standard procedures for--
                      (A) submitting any notice of a covered
                    transaction to the Committee;
                      (B) submitting a request to withdraw a
                    covered transaction from review;
                      (C) resubmitting a notice of a covered
                    transaction that was previously withdrawn from
                    review; and
                      (D) providing notice of the results of a
                    review or investigation to the parties to the
                    covered transaction, upon completion of all
                    action under this section.
              (8) Tolling of deadlines during lapse in
            appropriations.--Any deadline or time limitation under
            this subsection shall be tolled during a lapse in
            appropriations.
      (c) Confidentiality of Information.--
              (1) In general.--Except as provided in paragraph (2),
            any information or documentary material filed with the
            President or the President's designee pursuant to this
            section shall be exempt from disclosure under section
            552 of title 5, United States Code, and no such
            information or documentary material may be made public.
              (2) Exceptions.--Paragraph (1) shall not prohibit the
            disclosure of the following:
                      (A) Information relevant to any
                    administrative or judicial action or
                    proceeding.
                      (B) Information to Congress or any duly
                    authorized committee or subcommittee of
                    Congress.
                      (C) Information important to the national
                    security analysis or actions of the Committee
                    to any domestic governmental entity, or to any
                    foreign governmental entity of a United States
                    ally or partner, under the exclusive direction
                    and authorization of the chairperson, only to
                    the extent necessary for national security
                    purposes, and subject to appropriate
                    confidentiality and classification
                    requirements.
                      (D) Information that the parties have
                    consented to be disclosed to third parties.
              (3) Cooperation with allies and partners.--
                      (A) In general.--The chairperson, in
                    consultation with other members of the
                    Committee, should establish a formal process
                    for the exchange of information under paragraph
                    (2)(C) with governments of countries that are
                    allies or partners of the United States, in the
                    discretion of the chairperson, to protect the
                    national security of the United States and
                    those countries.
                      (B) Requirements.--The process established
                    under subparagraph (A) should, in the
                    discretion of the chairperson--
                              (i) be designed to facilitate the
                            harmonization of action with respect to
                            trends in investment and technology
                            that could pose risks to the national
                            security of the United States and
                            countries that are allies or partners
                            of the United States;
                              (ii) provide for the sharing of
                            information with respect to specific
                            technologies and entities acquiring
                            such technologies as appropriate to
                            ensure national security; and
                              (iii) include consultations and
                            meetings with representatives of the
                            governments of such countries on a
                            recurring basis.
      (d) Action by the President.--
              (1) In general.--Subject to paragraph (4), the
            President may take such action for such time as the
            President considers appropriate to suspend or prohibit
            any covered transaction that threatens to impair the
            national security of the United States.
              (2) Announcement by the president.--The President
            shall announce the decision on whether or not to take
            action pursuant to paragraph (1) with respect to a
            covered transaction not later than 15 days after the
            earlier of--
                      (A) the date on which the investigation of
                    the transaction under subsection (b) is
                    completed; or
                      (B) the date on which the Committee otherwise
                    refers the transaction to the President under
                    subsection (l)(2).
              (3) Enforcement.--The President may direct the
            Attorney General of the United States to seek
            appropriate relief, including divestment relief, in the
            district courts of the United States, in order to
            implement and enforce this subsection.
              (4) Findings of the president.--The President may
            exercise the authority conferred by paragraph (1), only
            if the President finds that--
                      (A) there is credible evidence that leads the
                    President to believe that a foreign person that
                    would acquire an interest in a United States
                    business or its assets as a result of the
                    covered transaction might take action that
                    threatens to impair the national security; and
                      (B) provisions of law, other than this
                    section and the International Emergency
                    Economic Powers Act, do not, in the judgment of
                    the President, provide adequate and appropriate
                    authority for the President to protect the
                    national security in the matter before the
                    President.
              (5) Factors to be considered.--For purposes of
            determining whether to take action under paragraph (1),
            the President shall consider, among other factors each
            of the factors described in subsection (f), as
            appropriate.
      (e) Actions and Findings Nonreviewable.--
              (1) In general.--The actions of the President under
            paragraph (1) of subsection (d) and the findings of the
            President under paragraph (4) of subsection (d) shall
            not be subject to judicial review.
              (2) Civil actions.--A civil action challenging an
            action or finding under this section may be brought
            only in the United States Court of Appeals for the
            District of Columbia Circuit.
              (3) Procedures for review of privileged
            information.--If a civil action challenging an action
            or finding under this section is brought, and the court
            determines that protected information in the
            administrative record, including classified or other
            information subject to privilege or protections under
            any provision of law, is necessary to resolve the
            challenge, that information shall be submitted ex parte
            and in camera to the court and the court shall maintain
            that information under seal.
              (4) Applicability of use of information provisions.--
            The use of information provisions of sections 106, 305,
            405, and 706 of the Foreign Intelligence Surveillance
            Act of 1978 (50 U.S.C. 1806, 1825, 1845, and 1881e)
            shall not apply in a civil action brought under this
            subsection.
      (f) Factors To Be Considered.--For purposes of this section,
    the President or the President's designee may, taking into
    account the requirements of national security, consider--
              (1) domestic production needed for projected national
            defense requirements,
              (2) the capability and capacity of domestic
            industries to meet national defense requirements,
            including the availability of human resources,
            products, technology, materials, and other supplies and
            services,
              (3) the control of domestic industries and commercial
            activity by foreign citizens as it affects the
            capability and capacity of the United States to meet
            the requirements of national security,
              (4) the potential effects of the proposed or pending
            transaction on sales of military goods, equipment, or
            technology to any country--
                      (A) identified by the Secretary of State--
                              (i) under section 6(j) of the Export
                            Administration Act of 1979, as a
                            country that supports terrorism;
                              (ii) under section 6(l) of the Export
                            Administration Act of 1979, as a
                            country of concern regarding missile
                            proliferation; or
                              (iii) under section 6(m) of the
                            Export Administration Act of 1979, as a
                            country of concern regarding the
                            proliferation of chemical and
                            biological weapons;
                      (B) identified by the Secretary of Defense as
                    posing a potential regional military threat to
                    the interests of the United States; or
                      (C) listed under section 309(c) of the
                    Nuclear Non-Proliferation Act of 1978 on the
                    ``Nuclear Non-Proliferation-Special Country
                    List'' (15 C.F.R. Part 778, Supplement No. 4)
                    or any successor list;
              (5) the potential effects of the proposed or pending
            transaction on United States international
            technological leadership in areas affecting United
            States national security;
              (6) the potential national security-related effects
            on United States critical infrastructure, including
            major energy assets;
              (7) the potential national security-related effects
            on United States critical technologies;
              (8) whether the covered transaction is a foreign
            government-controlled transaction, as determined under
            subsection (b)(1)(B);
              (9) as appropriate, and particularly with respect to
            transactions requiring an investigation under
            subsection (b)(1)(B), a review of the current
            assessment of--
                      (A) the adherence of the subject country to
                    nonproliferation control regimes, including
                    treaties and multilateral supply guidelines,
                    which shall draw on, but not be limited to, the
                    annual report on ``Adherence to and Compliance
                    with Arms Control, Nonproliferation and
                    Disarmament Agreements and Commitments''
                    required by section 403 of the Arms Control and
                    Disarmament Act;
                      (B) the relationship of such country with the
                    United States, specifically on its record on
                    cooperating in counter-terrorism efforts, which
                    shall draw on, but not be limited to, the
                    report of the President to Congress under
                    section 7120 of the Intelligence Reform and
                    Terrorism Prevention Act of 2004; and
                      (C) the potential for transshipment or
                    diversion of technologies with military
                    applications, including an analysis of national
                    export control laws and regulations;
              (10) the long-term projection of United States
            requirements for sources of energy and other critical
            resources and material; and
              (11) such other factors as the President or the
            Committee may determine to be appropriate, generally or
            in connection with a specific review or investigation.
      (g) Additional Information to Congress; Confidentiality.--
              (1) Briefing requirement on request.--The Committee
            shall, upon request from any Member of Congress
            specified in subsection (b)(3)(C)(iii), promptly
            provide briefings on a covered transaction for which
            all action has concluded under this section, or on
            compliance with a mitigation agreement or condition
            imposed with respect to such transaction, on a
            classified basis, if deemed necessary by the
            sensitivity of the information. Briefings under this
            paragraph may be provided to the congressional staff of
            such a Member of Congress having appropriate security
            clearance.
              (2) Application of confidentiality provisions.--
                      (A) In general.--The disclosure of
                    information under this subsection shall be
                    consistent with the requirements of subsection
                    (c). Members of Congress and staff of either
                    House of Congress or any committee of Congress,
                    shall be subject to the same limitations on
                    disclosure of information as are applicable
                    under subsection (c).
                      (B) Proprietary information.--Proprietary
                    information which can be associated with a
                    particular party to a covered transaction shall
                    be furnished in accordance with subparagraph
                    (A) only to a committee of Congress, and only
                    when the committee provides assurances of
                    confidentiality, unless such party otherwise
                    consents in writing to such disclosure.
      (h) Regulations.--
              (1) In general.--The President shall direct, subject
            to notice and comment, the issuance of regulations to
            carry out this section.
              (2) Content.--Regulations issued under this
            subsection shall--
                      (A) provide for the imposition of civil
                    penalties for any violation of this section,
                    including any mitigation agreement entered
                    into, conditions imposed, or order issued
                    pursuant to this section;
                      (B) to the extent possible--
                              (i) minimize paperwork burdens; and
                              (ii) coordinate reporting
                            requirements under this section with
                            reporting requirements under any other
                            provision of Federal law;
                      (C) provide for an appropriate role for the
                    Secretary of Labor with respect to mitigation
                    agreements; and
                      (D) provide that, in any review or
                    investigation of a covered transaction
                    conducted by the Committee under subsection
                    (b), the Committee should--
                              (i) consider the factors specified in
                            subsection (f); and
                              (ii) as appropriate, require parties
                            to provide to the Committee the
                            information necessary to consider such
                            factors.
      (i) Effect on Other Law.--No provision of this section shall
    be construed as altering or affecting any other authority,
    process, regulation, investigation, enforcement measure, or
    review provided by or established under any other provision of
    Federal law, including the International Emergency Economic
    Powers Act, or any other authority of the President or the
    Congress under the Constitution of the United States.
      (j) Technology Risk Assessments.--In any case in which an
    assessment of the risk of diversion of defense critical
    technology is performed by a designee of the President, a copy
    of such assessment shall be provided to any other designee of
    the President responsible for reviewing or investigating a
    transaction under this section.
      (k) Committee on Foreign Investment in the United States.--
              (1) Establishment.--The Committee on Foreign
            Investment in the United States, established pursuant
            to Executive Order No. 11858, shall be a multi agency
            committee to carry out this section and such other
            assignments as the President may designate.
              (2) Membership.--The Committee shall be comprised of
            the following members or the designee of any such
            member:
                      (A) The Secretary of the Treasury.
                      (B) The Secretary of Homeland Security.
                      (C) The Secretary of Commerce.
                      (D) The Secretary of Defense.
                      (E) The Secretary of State.
                      (F) The Attorney General of the United
                    States.
                      (G) The Secretary of Energy.
                      (H) The Secretary of Labor (nonvoting, ex
                    officio).
                      (I) The Director of National Intelligence
                    (nonvoting, ex officio).
                      (J) The heads of any other executive
                    department, agency, or office, as the President
                    determines appropriate, generally or on a case-
                    by-case basis.
              (3) Chairperson.--The Secretary of the Treasury shall
            serve as the chairperson of the Committee.
              (4) Hiring authority.--
                      (A) Senior officials.--
                              (i) In general.--Each member of the
                            Committee shall designate an Assistant
                            Secretary, or an equivalent official,
                            who is appointed by the President, by
                            and with the advice and consent of the
                            Senate, to carry out such duties
                            related to the Committee as the member
                            of the Committee may delegate.
                              (ii) Department of the treasury.--
                                      (I) In general.--There shall
                                    be established in the Office of
                                    International Affairs at the
                                    Department of the Treasury 2
                                    additional positions of
                                    Assistant Secretary of the
                                    Treasury, who shall be
                                    appointed by the President, by
                                    and with the advice and consent
                                    of the Senate, to carry out
                                    such duties related to the
                                    Committee as the Secretary of
                                    the Treasury may delegate,
                                    consistent with this section.
                                      (II) Assistant secretary for
                                    investment security.--One of
                                    the positions of Assistant
                                    Secretary of the Treasury
                                    authorized under subclause (I)
                                    shall be the Assistant
                                    Secretary for Investment
                                    Security, whose duties shall be
                                    principally related to the
                                    Committee, as delegated by the
                                    Secretary of the Treasury under
                                    this section.
                      (B) Special hiring authority.--The heads of
                    the departments and agencies represented on the
                    Committee may appoint, without regard to the
                    provisions of sections 3309 through 3318 of
                    title 5, United States Code, candidates
                    directly to positions in the competitive
                    service (as defined in section 2102 of that
                    title) in their respective departments and
                    agencies. The primary responsibility of
                    positions authorized under the preceding
                    sentence shall be to administer this section.
              (5) Designation of lead agency.--The Secretary of the
            Treasury shall designate, as appropriate, a member or
            members of the Committee to be the lead agency or
            agencies on behalf of the Committee--
                      (A) for each covered transaction, and for
                    negotiating any mitigation agreements or other
                    conditions necessary to protect national
                    security; and
                      (B) for all matters related to the monitoring
                    of the completed transaction, to ensure
                    compliance with such agreements or conditions
                    and with this section.
              (6) Other members.--The chairperson shall consult
            with the heads of such other Federal departments,
            agencies, and independent establishments in any review
            or investigation under subsection (a), as the
            chairperson determines to be appropriate, on the basis
            of the facts and circumstances of the covered
            transaction under review or investigation (or the
            designee of any such department or agency head).
              (7) Meetings.--The Committee shall meet upon the
            direction of the President or upon the call of the
            chairperson, without regard to section 552b of title 5,
            United States Code (if otherwise applicable).
              (8) Inclusion of the secretary of agriculture.--The
            Secretary of Agriculture shall be a member of the
            Committee with respect to a covered transaction that
            involves--
                      (A) agricultural land;
                      (B) agriculture biotechnology; or
                      (C) the agriculture industry, including
                    agricultural transportation, storage, and
                    processing.
      (l) Actions by the Committee to Address National Security
    Risks.--
              (1) Suspension of transactions.--The Committee,
            acting through the chairperson, may suspend a proposed
            or pending covered transaction that may pose a risk to
            the national security of the United States for such
            time as the covered transaction is under review or
            investigation under subsection (b).
              (2) Referral to president.--The Committee may, at any
            time during the review or investigation of a covered
            transaction under subsection (b), complete the action
            of the Committee with respect to the transaction and
            refer the transaction to the President for action
            pursuant to subsection (d).
              (3) Mitigation.--
                      (A) Agreements and conditions.--
                              (i) In general.--The Committee or a
                            lead agency may, on behalf of the
                            Committee, negotiate, enter into or
                            impose, and enforce any agreement or
                            condition with any party to the covered
                            transaction in order to mitigate any
                            risk to the national security of the
                            United States that arises as a result
                            of the covered transaction.
                              (ii) Abandonment of transactions.--If
                            a party to a covered transaction has
                            voluntarily chosen to abandon the
                            transaction, the Committee or lead
                            agency, as the case may be, may
                            negotiate, enter into or impose, and
                            enforce any agreement or condition with
                            any party to the covered transaction
                            for purposes of effectuating such
                            abandonment and mitigating any risk to
                            the national security of the United
                            States that arises as a result of the
                            covered transaction.
                              (iii) Agreements and conditions
                            relating to completed transactions.--
                            The Committee or lead agency, as the
                            case may be, may negotiate, enter into
                            or impose, and enforce any agreement or
                            condition with any party to a completed
                            covered transaction in order to
                            mitigate any interim risk to the
                            national security of the United States
                            that may arise as a result of the
                            covered transaction until such time
                            that the Committee has completed action
                            pursuant to subsection (b) or the
                            President has taken action pursuant to
                            subsection (d) with respect to the
                            transaction.
                      (B) Treatment of outdated agreements or
                    conditions.--The chairperson and the head of
                    the lead agency shall periodically review the
                    appropriateness of an agreement or condition
                    imposed under subparagraph (A) and terminate,
                    phase out, or otherwise amend the agreement or
                    condition if a threat no longer requires
                    mitigation through the agreement or condition.
                      (C) Limitations.--An agreement may not be
                    entered into or condition imposed under
                    subparagraph (A) with respect to a covered
                    transaction unless the Committee determines
                    that the agreement or condition resolves the
                    national security concerns posed by the
                    transaction, taking into consideration whether
                    the agreement or condition is reasonably
                    calculated to--
                              (i) be effective;
                              (ii) allow for compliance with the
                            terms of the agreement or condition in
                            an appropriately verifiable way; and
                              (iii) enable effective monitoring of
                            compliance with and enforcement of the
                            terms of the agreement or condition.
                      (D) Jurisdiction.--The provisions of section
                    706(b) shall apply to any mitigation agreement
                    entered into or condition imposed under
                    subparagraph (A).
              (4) Risk-based analysis required.--
                      (A) In general.--Any determination of the
                    Committee to suspend a covered transaction
                    under paragraph (1), to refer a covered
                    transaction to the President under paragraph
                    (2), or to negotiate, enter into or impose, or
                    enforce any agreement or condition under
                    paragraph (3)(A) with respect to a covered
                    transaction, shall be based on a risk-based
                    analysis, conducted by the Committee, of the
                    effects on the national security of the United
                    States of the covered transaction, which shall
                    include an assessment of the threat,
                    vulnerabilities, and consequences to national
                    security related to the transaction.
                      (B) Actions of members of the committee.--
                              (i) In general.--Any member of the
                            Committee who concludes that a covered
                            transaction poses an unresolved
                            national security concern shall
                            recommend to the Committee that the
                            Committee suspend the transaction under
                            paragraph (1), refer the transaction to
                            the President under paragraph (2), or
                            negotiate, enter into or impose, or
                            enforce any agreement or condition
                            under paragraph (3)(A) with respect to
                            the transaction. In making that
                            recommendation, the member shall
                            propose or contribute to the risk-based
                            analysis required by subparagraph (A).
                              (ii) Failure to reach consensus.--If
                            the Committee fails to reach consensus
                            with respect to a recommendation under
                            clause (i) regarding a covered
                            transaction, the members of the
                            Committee who support an alternative
                            recommendation shall produce--
                                      (I) a written statement
                                    justifying the alternative
                                    recommendation; and
                                      (II) as appropriate, a risk-
                                    based analysis that supports
                                    the alternative recommendation.
                      (C) Definitions.--For purposes of
                    subparagraph (A), the terms ``threat'',
                    ``vulnerabilities'', and ``consequences to
                    national security'' shall have the meanings
                    given those terms by the Committee by
                    regulation.
              (5) Tracking authority for withdrawn notices.--
                      (A) In general.--If any written notice of a
                    covered transaction that was submitted to the
                    Committee under this section is withdrawn
                    before any review or investigation by the
                    Committee under subsection (b) is completed,
                    the Committee shall establish, as appropriate--
                              (i) interim protections to address
                            specific concerns with such transaction
                            that have been raised in connection
                            with any such review or investigation
                            pending any resubmission of any written
                            notice under this section with respect
                            to such transaction and further action
                            by the President under this section;
                              (ii) specific time frames for
                            resubmitting any such written notice;
                            and
                              (iii) a process for tracking any
                            actions that may be taken by any party
                            to the transaction, in connection with
                            the transaction, before the notice
                            referred to in clause (ii) is
                            resubmitted.
                      (B) Designation of agency.--The lead agency,
                    other than any entity of the intelligence
                    community, shall, on behalf of the Committee,
                    ensure that the requirements of subparagraph
                    (A) with respect to any covered transaction
                    that is subject to such subparagraph are met.
              (6) Negotiation, modification, monitoring, and
            enforcement.--
                      (A) Designation of lead agency.--The lead
                    agency shall negotiate, modify, monitor, and
                    enforce, on behalf of the Committee, any
                    agreement entered into or condition imposed
                    under paragraph (3) with respect to a covered
                    transaction, based on the expertise with and
                    knowledge of the issues related to such
                    transaction on the part of the designated
                    department or agency. The lead agency may, at
                    its discretion, seek and receive the assistance
                    of other departments or agencies in carrying
                    out the purposes of this paragraph.
                      (B) Reporting by designated agency.--The lead
                    agency in connection with any agreement entered
                    into or condition imposed with respect to a
                    covered transaction shall--
                              (i) provide periodic reports to the
                            Committee on any material modification
                            to any such agreement or condition
                            imposed with respect to the
                            transaction; and
                              (ii) ensure that any material
                            modification to any such agreement or
                            condition is reported to the Director
                            of National Intelligence, the Attorney
                            General of the United States, and any
                            other Federal department or agency that
                            may have a material interest in such
                            modification.
                      (C) Compliance plans.--
                              (i) In general.--In the case of a
                            covered transaction with respect to
                            which an agreement is entered into
                            under paragraph (3)(A), the Committee
                            or lead agency, as the case may be,
                            shall formulate, adhere to, and keep
                            updated a plan for monitoring
                            compliance with the agreement.
                              (ii) Elements.--Each plan required by
                            clause (i) with respect to an agreement
                            entered into under paragraph (3)(A)
                            shall include an explanation of--
                                      (I) which member of the
                                    Committee will have primary
                                    responsibility for monitoring
                                    compliance with the agreement;
                                      (II) how compliance with the
                                    agreement will be monitored;
                                      (III) how frequently
                                    compliance reviews will be
                                    conducted;
                                      (IV) whether an independent
                                    entity will be utilized under
                                    subparagraph (E) to conduct
                                    compliance reviews; and
                                      (V) what actions will be
                                    taken if the parties fail to
                                    cooperate regarding monitoring
                                    compliance with the agreement.
                      (D) Effect of lack of compliance.--If, at any
                    time after a mitigation agreement or condition
                    is entered into or imposed under paragraph
                    (3)(A), the Committee or lead agency, as the
                    case may be, determines that a party or parties
                    to the agreement or condition are not in
                    compliance with the terms of the agreement or
                    condition, the Committee or lead agency may, in
                    addition to the authority of the Committee to
                    impose penalties pursuant to subsection (h)(3)
                    and to unilaterally initiate a review of any
                    covered transaction under subsection
                    (b)(1)(D)(iii)--
                              (i) negotiate a plan of action for
                            the party or parties to remediate the
                            lack of compliance, with failure to
                            abide by the plan or otherwise
                            remediate the lack of compliance
                            serving as the basis for the Committee
                            to find a material breach of the
                            agreement or condition;
                              (ii) require that the party or
                            parties submit a written notice under
                            clause (i) of subsection (b)(1)(C) or a
                            declaration under clause (v) of that
                            subsection with respect to a covered
                            transaction initiated after the date of
                            the determination of noncompliance and
                            before the date that is 5 years after
                            the date of the determination to the
                            Committee to initiate a review of the
                            transaction under subsection (b); or
                              (iii) seek injunctive relief.
                      (E) Use of independent entities to monitor
                    compliance.--If the parties to an agreement
                    entered into under paragraph (3)(A) enter into
                    a contract with an independent entity from
                    outside the United States Government for the
                    purpose of monitoring compliance with the
                    agreement, the Committee shall take such action
                    as is necessary to prevent a conflict of
                    interest from arising by ensuring that the
                    independent entity owes no fiduciary duty to
                    the parties.
                      (F) Successors and assigns.--Any agreement or
                    condition entered into or imposed under
                    paragraph (3)(A) shall be considered binding on
                    all successors and assigns unless and until the
                    agreement or condition terminates on its own
                    terms or is otherwise terminated by the
                    Committee in its sole discretion.
                      (G) Additional compliance measures.--Subject
                    to subparagraphs (A) through (F), the Committee
                    shall develop and agree upon methods for
                    evaluating compliance with any agreement
                    entered into or condition imposed with respect
                    to a covered transaction that will allow the
                    Committee to adequately ensure compliance
                    without unnecessarily diverting Committee
                    resources from assessing any new covered
                    transaction for which a written notice under
                    clause (i) of subsection (b)(1)(C) or
                    declaration under clause (v) of that subsection
                    has been filed, and if necessary, reaching a
                    mitigation agreement with or imposing a
                    condition on a party to such covered
                    transaction or any covered transaction for
                    which a review has been reopened for any
                    reason.
      (m) Annual Report to Congress.--
              (1) In general.--The chairperson shall transmit a
            report to the chairman and ranking member of the
            committee of jurisdiction in the Senate and the House
            of Representatives, before July 31 of each year on all
            of the reviews and investigations of covered
            transactions completed under subsection (b) during the
            12-month period covered by the report.
              (2) Contents of report relating to covered
            transactions.--The annual report under paragraph (1)
            shall contain the following information, with respect
            to each covered transaction, for the reporting period:
                      (A) A list of all notices filed and all
                    reviews or investigations of covered
                    transactions completed during the period,
                    with--
                              (i) a description of the outcome of
                            each review or investigation, including
                            whether an agreement was entered into
                            or condition was imposed under
                            subsection (l)(3)(A) with respect to
                            the transaction being reviewed or
                            investigated, and whether the President
                            took any action under this section with
                            respect to that transaction;
                              (ii) basic information on each party
                            to each such transaction;
                              (iii) the nature of the business
                            activities or products of the United
                            States business with which the
                            transaction was entered into or
                            intended to be entered into; and
                              (iv) information about any withdrawal
                            from the process.
                      (B) Specific, cumulative, and, as
                    appropriate, trend information on the numbers
                    of filings, investigations, withdrawals, and
                    decisions or actions by the President under
                    this section.
                      (C) Cumulative and, as appropriate, trend
                    information on the business sectors involved in
                    the filings which have been made, and the
                    countries from which the investments have
                    originated.
                      (D) Information on whether companies that
                    withdrew notices to the Committee in accordance
                    with subsection (b)(1)(C)(ii) have later
                    refiled such notices, or, alternatively,
                    abandoned the transaction.
                      (E) The types of security arrangements and
                    conditions the Committee has used to mitigate
                    national security concerns about a transaction,
                    including a discussion of the methods that the
                    Committee and any lead agency are using to
                    determine compliance with such arrangements or
                    conditions.
                      (F) A detailed discussion of all perceived
                    adverse effects of covered transactions on the
                    national security or critical infrastructure of
                    the United States that the Committee will take
                    into account in its deliberations during the
                    period before delivery of the next report, to
                    the extent possible.
                      (G) Statistics on compliance plans conducted
                    and actions taken by the Committee under
                    subsection (l)(6), including subparagraph (D)
                    of that subsection, during that period, a
                    general assessment of the compliance of parties
                    with agreements entered into and conditions
                    imposed under subsection (l)(3)(A) that are in
                    effect during that period, including a
                    description of any actions taken by the
                    Committee to impose penalties or initiate a
                    unilateral review pursuant to subsection
                    (b)(1)(D)(iii), and any recommendations for
                    improving the enforcement of such agreements
                    and conditions.
                      (H) Cumulative and, as appropriate, trend
                    information on the number of declarations filed
                    under subsection (b)(1)(C)(v), the actions
                    taken by the Committee in response to those
                    declarations, the business sectors involved in
                    those declarations, and the countries involved
                    in those declarations.
                      (I) A description of--
                              (i) the methods used by the Committee
                            to identify non-notified and non-
                            declared transactions under subsection
                            (b)(1)(H);
                              (ii) potential methods to improve
                            such identification and the resources
                            required to do so; and
                              (iii) the number of transactions
                            identified through the process
                            established under that subsection
                            during the reporting period and the
                            number of such transactions flagged for
                            further review.
                      (J) A summary of the hiring practices and
                    policies of the Committee pursuant to
                    subsection (k)(4).
                      (K) A list of the waivers granted by the
                    Committee under subsection
                    (b)(1)(C)(v)(IV)(bb)(CC).
                      (L) Information on whether the most recent
                    list of sites identified under subsection
                    (a)(4)(C)(iii) reflects consideration of any
                    recommended updates and revisions submitted
                    under subclause (II) of that subsection. Upon
                    request from the Committee on Financial
                    Services of the House of Representatives or the
                    Committee on Banking, Housing, and Urban
                    Affairs of the Senate, the Committee shall
                    provide to that committee a classified briefing
                    regarding that list.
              (3) Contents of report relating to critical
            technologies.--In order to assist Congress in its
            oversight responsibilities with respect to this
            section, the President and such agencies as the
            President shall designate shall include in the annual
            report submitted under paragraph (1)--
                      (A) an evaluation of whether there is
                    credible evidence of a coordinated strategy by
                    1 or more countries or companies to acquire
                    United States companies involved in research,
                    development, or production of critical
                    technologies for which the United States is a
                    leading producer;
                      (B) an evaluation of whether there are
                    industrial espionage activities directed or
                    directly assisted by foreign governments
                    against private United States companies aimed
                    at obtaining commercial secrets related to
                    critical technologies; and
                      (C) a description of the technologies
                    recommended by the chairperson under subsection
                    (a)(6)(B) for identification under the
                    interagency process set forth in section
                    1758(a) of the Export Control Reform Act of
                    2018.
              (4) Form of report.--
                      (A) In general.--All appropriate portions of
                    the annual report under paragraph (1) may be
                    classified. An unclassified version of the
                    report, as appropriate, consistent with
                    safeguarding national security and privacy,
                    shall be made available to the public.
                      (B) Inclusion in classified version.--If the
                    Committee recommends that the President suspend
                    or prohibit a covered transaction because the
                    transaction threatens to impair the national
                    security of the United States, the Committee
                    shall, in the classified version of the report
                    required under paragraph (1), notify Congress
                    of the recommendation and, upon request,
                    provide a classified briefing on the
                    recommendation.
                      (C) Inclusions in unclassified version.--The
                    unclassified version of the report required
                    under paragraph (1) shall include, with respect
                    to covered transactions for the reporting
                    period--
                              (i) the number of notices submitted
                            under subsection (b)(1)(C)(i);
                              (ii) the number of declarations
                            submitted under subsection (b)(1)(C)(v)
                            and the number of such declarations
                            that were required under subclause (IV)
                            of that subsection;
                              (iii) the number of declarations
                            submitted under subsection (b)(1)(C)(v)
                            for which the Committee required
                            resubmission as notices under
                            subsection (b)(1)(C)(i);
                              (iv) the average number of days that
                            elapsed between submission of a
                            declaration under subsection
                            (b)(1)(C)(v) and the acceptance of the
                            declaration by the Committee;
                              (v) the median and average number of
                            days that elapsed between acceptance of
                            a declaration by the Committee and a
                            response described in subsection
                            (b)(1)(C)(v)(III);
                              (vi) information on the time it took
                            the Committee to provide comments on,
                            or to accept, notices submitted under
                            subsection (b)(1)(C)(i), including--
                                      (I) the average number of
                                    business days that elapsed
                                    between the date of submission
                                    of a draft notice and the date
                                    on which the Committee provided
                                    written comments on the draft
                                    notice;
                                      (II) the average number of
                                    business days that elapsed
                                    between the date of submission
                                    of a formal written notice and
                                    the date on which the Committee
                                    accepted or provided written
                                    comments on the formal written
                                    notice; and
                                      (III) if the average number
                                    of business days for a response
                                    by the Committee reported under
                                    subclause (I) or (II) exceeded
                                    10 business days--
                                              (aa) an explanation
                                            of the causes of such
                                            delays, including
                                            whether such delays are
                                            caused by resource
                                            shortages, unusual
                                            fluctuations in the
                                            volume of notices,
                                            transaction
                                            characteristics, or
                                            other factors; and
                                              (bb) an explanation
                                            of the steps that the
                                            Committee anticipates
                                            taking to mitigate the
                                            causes of such delays
                                            and otherwise to
                                            improve the ability of
                                            the Committee to
                                            provide comments on, or
                                            to accept, notices
                                            within 10 business
                                            days;
                              (vii) the number of reviews or
                            investigations conducted under
                            subsection (b);
                              (viii) the number of investigations
                            that were subject to an extension under
                            subsection (b)(2)(C)(ii);
                              (ix) information on the duration of
                            those reviews and investigations,
                            including the median and average number
                            of days required to complete those
                            reviews and investigations;
                              (x) the number of notices submitted
                            under subsection (b)(1)(C)(i) and
                            declarations submitted under subsection
                            (b)(1)(C)(v) that were rejected by the
                            Committee;
                              (xi) the number of such notices and
                            declarations that were withdrawn by a
                            party to the covered transaction;
                              (xii) the number of such withdrawals
                            that were followed by the submission of
                            a subsequent such notice or declaration
                            relating to a substantially similar
                            covered transaction; and
                              (xiii) such other specific,
                            cumulative, or trend information that
                            the Committee determines is advisable
                            to provide for an assessment of the
                            time required for reviews and
                            investigations of covered transactions
                            under this section.
      (n) Certification of Notices and Assurances.--
              (1) In general.--Each notice, and any followup
            information, submitted under this section and
            regulations prescribed under this section to the
            President or the Committee by a party to a covered
            transaction, and any information submitted by any such
            party in connection with any action for which a report
            is required pursuant to paragraph (6)(B) of subsection
            (l), with respect to the implementation of any
            mitigation agreement or condition described in
            paragraph (3)(A) of subsection (l), or any material
            change in circumstances, shall be accompanied by a
            written statement by the chief executive officer or the
            designee of the person required to submit such notice
            or information certifying that, to the best of the
            knowledge and belief of that person--
                      (A) the notice or information submitted fully
                    complies with the requirements of this section
                    or such regulation, agreement, or condition;
                    and
                      (B) the notice or information is accurate and
                    complete in all material respects.
              (2) Effect of failure to submit.--The Committee may
            not complete a review under this section of a covered
            transaction and may recommend to the President that the
            President suspend or prohibit the transaction under
            subsection (d) if the Committee determines that a party
            to the transaction has--
                      (A) failed to submit a statement required by
                    paragraph (1); or
                      (B) included false or misleading information
                    in a notice or information described in
                    paragraph (1) or omitted material information
                    from such notice or information.
              (3) Applicability of law on fraud and false
            statements.--The Committee shall prescribe regulations
            expressly providing for the application of section 1001
            of title 18, United States Code, to all information
            provided to the Committee under this section by any
            party to a covered transaction.
      (o) Testimony.--
              (1) In general.--Not later than March 31 of each
            year, the chairperson, or the designee of the
            chairperson, shall appear before the Committee on
            Financial Services of the House of Representatives and
            the Committee on Banking, Housing, and Urban Affairs of
            the Senate to present testimony on--
                      (A) anticipated resources necessary for
                    operations of the Committee in the following
                    fiscal year at each of the departments or
                    agencies represented on the Committee;
                      (B) the adequacy of appropriations for the
                    Committee in the current and the previous
                    fiscal year to--
                              (i) ensure that thorough reviews and
                            investigations are completed as
                            expeditiously as possible;
                              (ii) monitor and enforce mitigation
                            agreements; and
                              (iii) identify covered transactions
                            for which a notice under clause (i) of
                            subsection (b)(1)(C) or a declaration
                            under clause (v) of that subsection was
                            not submitted to the Committee;
                      (C) management efforts to strengthen the
                    ability of the Committee to meet the
                    requirements of this section; and
                      (D) activities of the Committee undertaken in
                    order to--
                              (i) educate the business community,
                            with a particular focus on the
                            technology sector and other sectors of
                            importance to national security, on the
                            goals and operations of the Committee;
                              (ii) disseminate to the governments
                            of countries that are allies or
                            partners of the United States best
                            practices of the Committee that--
                                      (I) strengthen national
                                    security reviews of relevant
                                    investment transactions; and
                                      (II) expedite such reviews
                                    when appropriate; and
                              (iii) promote openness to foreign
                            investment, consistent with national
                            security considerations.
              (2) Sunset.--This subsection shall have no force or
            effect on or after the date that is 7 years after the
            date of the enactment of the Foreign Investment Risk
            Review Modernization Act of 2018.
      (p) Funding.--
              (1) Establishment of fund.--There is established in
            the Treasury of the United States a fund, to be known
            as the ``Committee on Foreign Investment in the United
            States Fund'' (in this subsection referred to as the
            ``Fund''), to be administered by the chairperson.
              (2) Authorization of appropriations for the
            committee.--There are authorized to be appropriated to
            the Fund for each of fiscal years 2019 through 2023
            $20,000,000 to perform the functions of the Committee.
              (3) Filing fees.--
                      (A) In general.--The Committee may assess and
                    collect a fee in an amount determined by the
                    Committee in regulations, to the extent
                    provided in advance in appropriations Acts,
                    without regard to section 9701 of title 31,
                    United States Code, and subject to subparagraph
                    (B), with respect to each covered transaction
                    for which a written notice is submitted to the
                    Committee under subsection (b)(1)(C)(i). The
                    total amount of fees collected under this
                    paragraph may not exceed the costs of
                    administering this section.
                      (B) Determination of amount of fee.--
                              (i) In general.--The amount of the
                            fee to be assessed under subparagraph
                            (A) with respect to a covered
                            transaction--
                                      (I) may not exceed an amount
                                    equal to the lesser of--
                                              (aa) 1 percent of the
                                            value of the
                                            transaction; or
                                              (bb) $300,000,
                                            adjusted annually for
                                            inflation pursuant to
                                            regulations prescribed
                                            by the Committee; and
                                      (II) shall be based on the
                                    value of the transaction,
                                    taking into account--
                                              (aa) the effect of
                                            the fee on small
                                            business concerns (as
                                            defined in section 3 of
                                            the Small Business Act
                                            (15 U.S.C. 632));
                                              (bb) the expenses of
                                            the Committee
                                            associated with
                                            conducting activities
                                            under this section;
                                              (cc) the effect of
                                            the fee on foreign
                                            investment; and
                                              (dd) such other
                                            matters as the
                                            Committee considers
                                            appropriate.
                              (ii) Updates.--The Committee shall
                            periodically reconsider and adjust the
                            amount of the fee to be assessed under
                            subparagraph (A) with respect to a
                            covered transaction to ensure that the
                            amount of the fee does not exceed the
                            costs of administering this section and
                            otherwise remains appropriate.
                      (C) Deposit and availability of fees.--
                    Notwithstanding section 3302 of title 31,
                    United States Code, fees collected under
                    subparagraph (A) shall--
                              (i) be deposited into the Fund solely
                            for use in carrying out activities
                            under this section;
                              (ii) to the extent and in the amounts
                            provided in advance in appropriations
                            Acts, be available to the chairperson;
                              (iii) remain available until
                            expended; and
                              (iv) be in addition to any
                            appropriations made available to the
                            members of the Committee.
                      (D) Study on prioritization fee.--
                              (i) In general.--Not later than 270
                            days after the date of the enactment of
                            the Foreign Investment Risk Review
                            Modernization Act of 2018, the
                            chairperson, in consultation with the
                            Committee, shall complete a study of
                            the feasibility and merits of
                            establishing a fee or fee scale to
                            prioritize the timing of the response
                            of the Committee to a draft or formal
                            written notice during the period before
                            the Committee accepts the formal
                            written notice under subsection
                            (b)(1)(C)(i), in the event that the
                            Committee is unable to respond during
                            the time required by subclause (II) of
                            that subsection because of an unusually
                            large influx of notices, or for other
                            reasons.
                              (ii) Submission to congress.--After
                            completing the study required by clause
                            (i), the chairperson, or a designee of
                            the chairperson, shall submit to the
                            Committee on Banking, Housing, and
                            Urban Affairs of the Senate and the
                            Committee on Financial Services of the
                            House of Representatives a report on
                            the findings of the study.
              (4) Transfer of funds.--To the extent provided in
            advance in appropriations Acts, the chairperson may
            transfer any amounts in the Fund to any other
            department or agency represented on the Committee for
            the purpose of addressing emerging needs in carrying
            out activities under this section. Amounts so
            transferred shall be in addition to any other amounts
            available to that department or agency for that
            purpose.
      (q) Centralization of Certain Committee Functions.--
              (1) In general.--The chairperson, in consultation
            with the Committee, may centralize certain functions of
            the Committee within the Department of the Treasury for
            the purpose of enhancing interagency coordination and
            collaboration in carrying out the functions of the
            Committee under this section.
              (2) Functions.--Functions that may be centralized
            under paragraph (1) include identifying non-notified
            and non-declared transactions pursuant to subsection
            (b)(1)(H), and other functions as determined by the
            chairperson and the Committee.
              (3) Rule of construction.--Nothing in this section
            shall be construed as limiting the authority of any
            department or agency represented on the Committee to
            represent its own interests before the Committee.

               *       *       *       *       *       *       *

                                DISSENTING VIEWS

        I am submitting these Dissenting Views to outline the
    concerns expressed by myself and my Democratic colleagues
    regarding the ``skinny'' farm bill that advanced out of the
    House Committee of Agriculture in the early hours of Thursday,
    March 5, 2026. Our message is simple: the approach and policies
    championed by the Republican majority have done and will do a
    grave disservice to America's family farmers and the families
    they feed.
        Farm bills are not written in a vacuum, and the 2026 Farm
    Bill was written in the shadow of the hyper-partisan Big
    Beautiful Bill that House Republicans used to decimate the
    nutrition title (Title IV) of the farm bill with a $187 billion
    cut to the Supplemental Nutrition Assistance Program (SNAP).
    These funds were taken out of Title IV and used to finance tax
    breaks primarily aimed for the highest income earners and fund
    myriad other priorities, including a nearly $70 billion
    investment in farm safety net programs. Many Democrats would
    have supported the latter, had Republicans not taken food out
    of the mouths of hungry Americans to pay for it. Effectively,
    the starting point for negotiating the 2026 Farm Bill was not
    the 2018 Farm Bill, but a disassembled, emaciated shell of a
    farm bill made of leftovers of the reconciliation process.
        Hence, one of Democrats' chief concerns with the 2026 Farm
    Bill was and continues to be its failure to recognize and
    mitigate the food assistance cuts done via the Big Beautiful
    Bill. Food is increasingly expensive thanks to the President's
    trade wars and Republican economic policies, a fact even
    Republicans openly admit when the media isn't watching. Many
    American families are struggling, and thanks to Republican
    nutrition cuts, there is now less help available to millions of
    children, people with disabilities, veterans and older adults
    who cannot afford food.
        To make things worse, cuts of this magnitude have negative
    downstream effects for America's farmers and blue-collar
    workers, including truck drivers, warehouse workers and food
    processors. This $187 billion cut to SNAP--the largest cut to
    food assistance in American history--effectively takes $25
    billion out of the farm economy by reducing the purchasing
    power of low-income Americans who spend money on the food our
    farmers grow. At a time when farmers need to expand all
    markets, curtailing domestic consumption is not only misguided,
    but it also flies in the face of the president's call to expand
    domestic consumption of U.S. agricultural products.
        Part of the $187 cut to SNAP comes from an unfunded mandate
    included in the Big Beautiful Bill, which increases current
    administrative cost-share for states to 75 percent while
    creating a new financial obligation for states to pay for food
    assistance benefits themselves. States like Minnesota are
    already increasing property taxes as local governments search
    for new revenue to replace the millions--and in some cases
    billions--of dollars that the federal government is no longer
    providing. This is not a solely Democratic issue. The
    bipartisan National Governors Association has sounded the alarm
    about the negative effect this Republican policy will have on
    both blue and red states and have asked for more time to try to
    prepare to meet this new unfunded mandate from Washington. At
    the bare minimum, a farm bill worthy of broad Democratic
    support must acknowledge and address these glaring problems.
        The 2026 Farm Bill includes many additional shortcomings
    beyond its failure to address the Republican's abandonment of
    America's hungry.
        The Republican farm bill includes a liability shield for
    giant chemical and pesticide corporations, depriving
    individuals--farmers and ordinary folk alike--of seeking legal
    recourse should they suffer ill health effects due to the use
    of or exposure to certain chemical products, including
    pesticides. While farmers need tools to manage pests and
    produce bountiful crops which they use to feed our communities
    and the world, we must never place corporate profits over the
    health and wellbeing of the American citizenry.
        In addition to shielding pesticide companies, the bill
    undermines or entirely waives key environmental laws. It
    exempts pesticide discharges into waterways from the Clean
    Water Act and Clean Air Act; forest management plans from
    updating requirements under the Endangered Species Act; and
    allows 10,000-acre commercial timber projects to move forward
    without any public participation or environmental analysis. The
    bill even mandates a return to the ``10 a.m. policy,'' blocking
    the use of beneficial fire to naturally remove flammable debris
    in the forests. The Forest Service's own website calls the 10
    a.m. policy ``a strategy of the past that unfortunately helped
    create the wildfire crisis of today.'' This bill codifies it.
        The 2026 Farm Bill also cuts over $1 billion from the
    Environmental Quality Incentive Program (EQIP), which I am
    comfortable describing as the farm bill's marquee land
    conservation program. EQIP is underfunded and oversubscribed.
    That's why Democrats made $19.5 billion in new investments in
    EQIP and other conservation programs in the Inflation Reduction
    Act (IRA). And while these funds were shifted to the farm bill
    through budget reconciliation, the Republicans now are using it
    as their own private piggy bank. This cut erodes the
    investments made by the IRA and makes EQIP less accessible to
    farmers who would enroll in the program to improve the health
    of their land.
        Additional concerns include language that preempts ballot
    initiatives passed in California and Massachusetts that set
    standards for pork products sold to local consumers. These
    ballot initiatives--approved by the residents of those states--
    created premium markets for hog farmers. The preemption of
    these state initiatives hurts hog farmers who have already
    invested capital to bring their farms into compliance with said
    initiatives to sell into those premium markets.
        The 2026 Farm Bill is also controversial for what it does
    not do. As noted at the markup, the Republican majority missed
    a huge opportunity to expand domestic markets by passing
    permanent year-round E15. Year-round E15 would create a
    consistent market for America's farmers--a market that is
    sorely needed after export markets have dried up and trade
    relationships have frayed because of President Trump's ill-
    conceived tariffs.
        When Democrats offered an amendment to add year-round E15,
    Republicans used their majority to block debate. Why? Because
    they did not want to draw attention to their failure to get the
    job done. At the very least, year-round E15 deserved a robust
    debate at the markup. Anything less is a disservice to American
    farmers who would benefit from an Agriculture Committee that
    fights fiercely for them--even if it offends the sensibilities
    of another House Committee.
        The 2026 Farm Bill also does not provide additional farm
    relief for the family farmers suffering from tariffs and trade
    wars. Everyone agrees that the $11 billion for row crops and
    less than $1 billion offered to specialty crops in the Trump
    administration's farm aid package is woefully inadequate. The
    American Farm Bureau estimates that recent losses amount to
    over $50 billion. It was frankly shocking to see an amendment
    to provide an additional $17 billion in farm aid dismissed by
    Republicans so nonchalantly. Farmers, at no fault of their own,
    are caught between nations as the president chaotically and
    without any apparent forethought levies and cancels and changes
    tariff rates. They need and deserve our help.
        Many other concerns with the bill persist, including the
    fact that the 2026 Farm Bill simply rubberstamps preexisting
    programs at 2018 budget levels, without any adjustment for
    inflation or new investments that farmers and rural communities
    desperately need.
        House Democrats warned innumerable times against the
    majority taking a partisan approach to enacting farm policy but
    have been ignored every step of the way. We were ignored in
    2024, and we were ignored this year. There are some good
    provisions in this bill just as there were some good provisions
    in H.R. 1. But broad political support for those good
    provisions is jeopardized by the hyper-partisanship Republicans
    seem to be promoting not just with agricultural policy but with
    every piece of legislation in the House.
        Republicans have taken great glee in breaking the farm-
    environment-nutrition coalition that has been behind the
    successful completion of decades of farm bills and agriculture
    policy. But that shortsighted approach, combined with their
    hyper-partisanship, has resulted in the longest delay ever in
    getting a full five-year, twelve-title farm bill reauthorized.
    This bill demonstrates that delaying the enactment of crucial
    farm policy is a price Republicans are willing to pay for their
    partisanship.
        Ultimately, results speak for themselves. Whether it is a
    farm bill, farm aid or E15/biofuels policy, the American people
    are looking for results. House Agriculture Democrats remain
    willing to work with anyone to improve the lives of America's
    farmers and the communities they feed. Hopefully, Republicans
    can relearn the lesson that results and long-lasting, good
    policy does not come from ideological purity but by reaching
    out across the aisle and building broad coalitions. If not,
    American farmers could be left wanting for some time.
                Sincerely,
                                                   Angie Craig,
                                                        Ranking Member.

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