[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
* * * * * * *
TITLE III--BILL EMERSON HUMANITARIAN TRUST
* * * * * * *
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.
* * * * * * *
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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.
* * * * * * *
----------
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.
[all]