[104th Congress Public Law 127]
[From the U.S. Government Printing Office]
<DOC>
[DOCID: f:publ127.104]
[[Page 887]]
FEDERAL AGRICULTURE IMPROVEMENT AND REFORM ACT OF 1996
[[Page 110 STAT. 888]]
Public Law 104-127
104th Congress
An Act
To modify the operation of certain agricultural programs. <<NOTE: Apr.
4, 1996 - [H.R. 2854]>>
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled, <<NOTE: Federal
Agriculture Improvement and Reform Act of 1996.>>
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) <<NOTE: 7 USC 7201 note.>> Short Title.--This Act may be cited
as the ``Federal Agriculture Improvement and Reform Act of 1996''.
(b) Table of Contents.--The table of contents of this Act is as
follows:
Sec. 1. Short title; table of contents.
TITLE I--AGRICULTURAL MARKET TRANSITION ACT
Subtitle A--Short Title, Purpose, and Definitions
Sec. 101. Short title and purpose.
Sec. 102. Definitions.
Subtitle B--Production Flexibility Contracts
Sec. 111. Authorization for use of production flexibility contracts.
Sec. 112. Elements of contracts.
Sec. 113. Amounts available for contract payments.
Sec. 114. Determination of contract payments under contracts.
Sec. 115. Payment limitations.
Sec. 116. Violations of contract.
Sec. 117. Transfer or change of interest in lands subject to contract.
Sec. 118. Planting flexibility.
Subtitle C--Nonrecourse Marketing Assistance Loans and Loan Deficiency
Payments
Sec. 131. Availability of nonrecourse marketing assistance loans.
Sec. 132. Loan rates for marketing assistance loans.
Sec. 133. Term of loans.
Sec. 134. Repayment of loans.
Sec. 135. Loan deficiency payments.
Sec. 136. Special marketing loan provisions for upland cotton.
Sec. 137. Availability of recourse loans for high moisture feed grains
and seed cotton.
Subtitle D--Other Commodities
Chapter 1--Dairy
Sec. 141. Milk price support program.
Sec. 142. Recourse loan program for commercial processors of dairy
products.
Sec. 143. Consolidation and reform of Federal milk marketing orders.
Sec. 144. Effect on fluid milk standards in State of California.
Sec. 145. Milk manufacturing marketing adjustment.
Sec. 146. Promotion.
Sec. 147. Northeast Interstate Dairy Compact.
Sec. 148. Dairy export incentive program.
Sec. 149. Authority to assist in establishment and maintenance of one or
more export trading companies.
Sec. 150. Standby authority to indicate entity best suited to provide
international market development and export services.
[[Page 110 STAT. 889]]
Sec. 151. Study and report regarding potential impact of Uruguay Round
on prices, income, and Government purchases.
Sec. 152. Promotion of United States dairy products in international
markets through dairy promotion program.
Chapter 2--Peanuts and Sugar
Sec. 155. Peanut program.
Sec. 156. Sugar program.
Subtitle E--Administration
Sec. 161. Administration.
Sec. 162. Adjustments of loans.
Sec. 163. Commodity Credit Corporation interest rate.
Sec. 164. Personal liability of producers for deficiencies.
Sec. 165. Commodity Credit Corporation sales price restrictions.
Subtitle F--Permanent Price Support Authority
Sec. 171. Suspension and repeal of permanent price support authority.
Sec. 172. Effect of amendments.
Subtitle G--Commission on 21st Century Production Agriculture
Sec. 181. Establishment.
Sec. 182. Composition.
Sec. 183. Comprehensive review of past and future of production
agriculture.
Sec. 184. Reports.
Sec. 185. Powers.
Sec. 186. Commission procedures.
Sec. 187. Personnel matters.
Sec. 188. Termination of Commission.
Subtitle H--Miscellaneous Commodity Provisions
Sec. 191. Options pilot program.
Sec. 192. Risk management education.
Sec. 193. Crop insurance.
Sec. 194. Establishment of Office of Risk Management.
Sec. 195. Revenue insurance.
Sec. 196. Administration and operation of noninsured crop assistance
program.
TITLE II--AGRICULTURAL TRADE
Subtitle A--Amendments to Agricultural Trade Development and Assistance
Act of 1954 and Related Statutes
Sec. 201. Food aid to developing countries.
Sec. 202. Trade and development assistance.
Sec. 203. Agreements regarding eligible countries and private entities.
Sec. 204. Terms and conditions of sales.
Sec. 205. Use of local currency payment.
Sec. 206. Value-added foods.
Sec. 207. Eligible organizations.
Sec. 208. Generation and use of foreign currencies.
Sec. 209. General levels of assistance under Public Law 480.
Sec. 210. Food Aid Consultative Group.
Sec. 211. Support of nongovernmental organizations.
Sec. 212. Commodity determinations.
Sec. 213. General provisions.
Sec. 214. Agreements.
Sec. 215. Use of Commodity Credit Corporation.
Sec. 216. Administrative provisions.
Sec. 217. Expiration date.
Sec. 218. Regulations.
Sec. 219. Independent evaluation of programs.
Sec. 220. Authorization of appropriations.
Sec. 221. Coordination of foreign assistance programs.
Sec. 222. Micronutrient fortification pilot program.
Sec. 223. Use of certain local currency.
Sec. 224. Farmer-to-farmer program.
Sec. 225. Food security commodity reserve.
Sec. 226. Protein byproducts derived from alcohol fuel production.
Sec. 227. Food for progress program.
Sec. 228. Use of foreign currency proceeds from export sales financing.
[[Page 110 STAT. 890]]
Sec. 229. Stimulation of foreign production.
Subtitle B--Amendments to Agricultural Trade Act of 1978
Sec. 241. Agricultural export promotion strategy.
Sec. 242. Implementation of commitments under Uruguay Round Agreements.
Sec. 243. Export credits.
Sec. 244. Market access program.
Sec. 245. Export enhancement program.
Sec. 246. Arrival certification.
Sec. 247. Compliance.
Sec. 248. Regulations.
Sec. 249. Trade compensation and assistance programs.
Sec. 250. Foreign Agricultural Service.
Sec. 251. Reports.
Sec. 252. Foreign market development cooperator program.
Subtitle C--Miscellaneous Agricultural Trade Provisions
Sec. 261. Edward R. Madigan United States Agricultural Export Excellence
Award.
Sec. 262. Reporting requirements relating to tobacco.
Sec. 263. Triggered export enhancement.
Sec. 264. Disposition of commodities to prevent waste.
Sec. 265. Debt-for-health-and-protection swap.
Sec. 266. Policy on expansion of international markets.
Sec. 267. Policy on maintenance and development of export markets.
Sec. 268. Policy on trade liberalization.
Sec. 269. Agricultural trade negotiations.
Sec. 270. Policy on unfair trade practices.
Sec. 271. Agricultural aid and trade missions.
Sec. 272. Annual reports by agricultural attaches.
Sec. 273. World livestock market price information.
Sec. 274. Orderly liquidation of stocks.
Sec. 275. Sales of extra long staple cotton.
Sec. 276. Regulations.
Sec. 277. Emerging markets.
Sec. 278. Reimbursement for overhead expenses.
Sec. 279. Labeling of domestic and imported lamb and mutton.
Sec. 280. Import assistance for CBI beneficiary countries and the
Philippines.
Sec. 281. Studies, reports, and other provisions.
Sec. 282. Sense of Congress concerning multilateral disciplines on
credit guarantees.
Sec. 283. International Cotton Advisory Committee.
TITLE III--CONSERVATION
Subtitle A--Definitions
Sec. 301. Definitions applicable to highly erodible cropland
conservation.
Subtitle B--Highly Erodible Land Conservation
Sec. 311. Program ineligibility.
Sec. 312. Conservation reserve lands.
Sec. 313. Good faith exemption.
Sec. 314. Expedited procedures for granting variances from conservation
plans.
Sec. 315. Development and implementation of conservation plans and
conservation systems.
Sec. 316. Investigation of possible compliance deficiencies.
Sec. 317. Wind erosion estimation pilot project.
Subtitle C--Wetland Conservation
Sec. 321. Program ineligibility.
Sec. 322. Delineation of wetlands; exemptions to program ineligibility.
Sec. 323. Consultation and cooperation requirements.
Sec. 324. Application of program ineligibility to affiliated persons.
Sec. 325. Clarification of definition of agricultural lands in
memorandum of agreement.
Sec. 326. Effective date.
Subtitle D--Environmental Conservation Acreage Reserve Program
Sec. 331. Environmental conservation acreage reserve program.
Sec. 332. Conservation reserve program.
Sec. 333. Wetlands reserve program.
[[Page 110 STAT. 891]]
Sec. 334. Environmental quality incentives program.
Sec. 335. Conservation farm option.
Sec. 336. Repeal of superseded authorities.
Subtitle E--Conservation Funding and Administration
Sec. 341. Conservation funding and administration.
Sec. 342. State technical committees.
Sec. 343. Public notice and comment for revisions to certain State
technical guides.
Subtitle F--National Natural Resources Conservation Foundation
Sec. 351. Short title.
Sec. 352. Definitions.
Sec. 353. National Natural Resources Conservation Foundation.
Sec. 354. Composition and operation.
Sec. 355. Officers and employees.
Sec. 356. Corporate powers and obligations of the Foundation.
Sec. 357. Administrative services and support.
Sec. 358. Audits and petition of Attorney General for equitable relief.
Sec. 359. Release from liability.
Sec. 360. Authorization of appropriations.
Subtitle G--Forestry
Sec. 371. Office of International Forestry.
Sec. 372. Cooperative work for protection, management, and improvement
of National Forest System.
Sec. 373. Forestry incentives program.
Sec. 374. Optional State grants for forest legacy program.
Subtitle H--Miscellaneous Conservation Provisions
Sec. 381. Conservation activities of Commodity Credit Corporation.
Sec. 382. Floodplain easements.
Sec. 383. Resource conservation and development program.
Sec. 384. Repeal of report requirement.
Sec. 385. Flood risk reduction.
Sec. 386. Conservation of private grazing land.
Sec. 387. Wildlife habitat incentives program.
Sec. 388. Farmland protection program.
Sec. 389. Interim moratorium on bypass flows.
Sec. 390. Everglades ecosystem restoration.
Sec. 391. Agricultural air quality research oversight.
TITLE IV--NUTRITION ASSISTANCE
Sec. 401. Food stamp program.
Sec. 402. Commodity distribution program; commodity supplemental food
program.
Sec. 403. Emergency food assistance program.
Sec. 404. Soup kitchen and food bank program.
Sec. 405. National commodity processing.
TITLE V--AGRICULTURAL PROMOTION
Subtitle A--Commodity Promotion and Evaluation
Sec. 501. Commodity promotion and evaluation.
Subtitle B--Issuance of Orders for Promotion, Research, and Information
Activities Regarding Agricultural Commodities
Sec. 511. Short title.
Sec. 512. Findings and purpose.
Sec. 513. Definitions.
Sec. 514. Issuance of orders.
Sec. 515. Required terms in orders.
Sec. 516. Permissive terms in orders.
Sec. 517. Assessments.
Sec. 518. Referenda.
Sec. 519. Petition and review of orders.
Sec. 520. Enforcement.
Sec. 521. Investigations and power to subpoena.
Sec. 522. Suspension or termination.
Sec. 523. Amendments to orders.
Sec. 524. Effect on other laws.
Sec. 525. Regulations.
[[Page 110 STAT. 892]]
Sec. 526. Authorization of appropriations.
Subtitle C--Canola and Rapeseed
Sec. 531. Short title.
Sec. 532. Findings and declaration of policy.
Sec. 533. Definitions.
Sec. 534. Issuance and amendment of orders.
Sec. 535. Required terms in orders.
Sec. 536. Assessments.
Sec. 537. Referenda.
Sec. 538. Petition and review.
Sec. 539. Enforcement.
Sec. 540. Investigations and power to subpoena.
Sec. 541. Suspension or termination.
Sec. 542. Regulations.
Sec. 543. Authorization of appropriations.
Subtitle D--Kiwifruit
Sec. 551. Short title.
Sec. 552. Findings and purposes.
Sec. 553. Definitions.
Sec. 554. Issuance of orders.
Sec. 555. National Kiwifruit Board.
Sec. 556. Required terms in order.
Sec. 557. Permissive terms in order.
Sec. 558. Petition and review.
Sec. 559. Enforcement.
Sec. 560. Investigations and power to subpoena.
Sec. 561. Referenda.
Sec. 562. Suspension or termination.
Sec. 563. Regulations.
Sec. 564. Authorization of appropriations.
Subtitle E--Popcorn
Sec. 571. Short title.
Sec. 572. Findings and declaration of policy.
Sec. 573. Definitions.
Sec. 574. Issuance of orders.
Sec. 575. Required terms in orders.
Sec. 576. Referenda.
Sec. 577. Petition and review.
Sec. 578. Enforcement.
Sec. 579. Investigations and power to subpoena.
Sec. 580. Relation to other programs.
Sec. 581. Regulations.
Sec. 582. Authorization of appropriations.
Subtitle F--Miscellaneous
Sec. 591. Maintenance of records for honey promotion program.
TITLE VI--CREDIT
Subtitle A--Farm Ownership Loans
Sec. 601. Limitation on direct farm ownership loans.
Sec. 602. Purposes of loans.
Sec. 603. Soil and water conservation and protection.
Sec. 604. Interest rate requirements.
Sec. 605. Insurance of loans.
Sec. 606. Loans guaranteed.
Subtitle B--Operating Loans
Sec. 611. Limitation on direct operating loans.
Sec. 612. Purposes of operating loans.
Sec. 613. Participation in loans.
Sec. 614. Line-of-credit loans.
Sec. 615. Insurance of operating loans.
Sec. 616. Special assistance for beginning farmers and ranchers.
Sec. 617. Limitation on period for which borrowers are eligible for
guaranteed assistance.
Subtitle C--Emergency Loans
Sec. 621. Hazard insurance requirement.
[[Page 110 STAT. 893]]
Sec. 622. Narrowing of authority to waive application of the credit
elsewhere test.
Sec. 623. Linking of emergency loans for crop or livestock changes to
natural disasters.
Sec. 624. Maximum emergency loan indebtedness.
Sec. 625. Establishment of date for emergency loan asset valuation.
Sec. 626. Insurance of emergency loans.
Subtitle D--Administrative Provisions
Sec. 631. Temporary authority to enter into contracts.
Sec. 632. Use of collection agencies.
Sec. 633. Notice of loan service programs.
Sec. 634. Clarification of written statement required of borrowers.
Sec. 635. Annual review of the credit history, business operation, and
continued eligibility of a borrower.
Sec. 636. Extension of veterans preference.
Sec. 637. Verification of the credit elsewhere test.
Sec. 638. Sale of property.
Sec. 639. Easements on inventoried property.
Sec. 640. Definitions.
Sec. 641. Authorization for loans.
Sec. 642. Contracts on loan security properties.
Sec. 643. List of certified lenders and inventory property demonstration
project.
Sec. 644. Homestead property.
Sec. 645. Restructuring.
Sec. 646. Transfer of inventory land for conservation purposes.
Sec. 647. Implementation of target participation rates.
Sec. 648. Delinquent borrowers.
Sec. 649. Short form certification of farm program borrower compliance.
Sec. 650. Credit study.
Subtitle E--General Provisions
Sec. 661. Conforming amendments.
Sec. 662. Electronic filing of effective financing statements under the
clear title provisions of the Food Security Act of 1985.
Sec. 663. Effective date.
TITLE VII--RURAL DEVELOPMENT
Subtitle A--Amendments to the Food, Agriculture, Conservation, and Trade
Act of 1990
Chapter 1--General Provisions
Sec. 701. Rural investment partnerships.
Sec. 702. Water and waste facility financing.
Sec. 703. Rural wastewater circuit rider program.
Sec. 704. Telemedicine and distance learning services in rural areas.
Sec. 705. Limitation on authorization of appropriations for rural
technology grants.
Sec. 706. Demonstration projects.
Sec. 707. Monitoring the economic progress of rural America.
Sec. 708. Analysis by Office of Technology Assessment.
Sec. 709. Rural health infrastructure improvement.
Sec. 710. Census of agriculture.
Sec. 711. Study of the transportation of fertilizer and agricultural
chemicals to farmers.
Chapter 2--Alternative Agricultural Research and Commercialization
Sec. 721. Definitions.
Sec. 722. Alternative Agricultural Research and Commercialization
Corporation.
Sec. 723. Board of directors, employees, and facilities.
Sec. 724. Research and development grants, contracts, and agreements.
Sec. 725. Commercialization assistance.
Sec. 726. General rules regarding the provision of assistance.
Sec. 727. Regional centers.
Sec. 728. Alternative Agricultural Research and Commercialization
Revolving Fund.
Sec. 729. Procurement preferences for products receiving Corporation
assistance.
Sec. 730. Business plan and feasibility study and report.
Subtitle B--Amendments to the Consolidated Farm and Rural Development
Act
Chapter 1--General Provisions
Sec. 741. Water and waste facility loans and grants.
[[Page 110 STAT. 894]]
Sec. 742. Emergency community water assistance grant program for small
communities.
Sec. 743. Emergency community water assistance grant program for
smallest communities.
Sec. 744. Agricultural Credit Insurance Fund.
Sec. 745. Rural Development Insurance Fund.
Sec. 746. Insured watershed and resource conservation and development
loans.
Sec. 747. Rural industrialization assistance.
Sec. 748. Administration.
Sec. 749. Authorization of appropriations.
Sec. 750. Testimony before congressional committees.
Sec. 751. Prohibition on use of loans for certain purposes.
Sec. 752. Rural development certified lenders program.
Sec. 753. System for delivery of certain rural development programs.
Sec. 754. State rural economic development review panel.
Sec. 755. Limited transfer authority of loan amounts.
Sec. 756. Allocation and transfer of loan guarantee authority.
Sec. 757. Water systems for rural and Native villages in Alaska.
Sec. 758. Application requirements relating to water and waste disposal
loan and grant programs.
Sec. 759. National Sheep Industry Improvement Center.
Sec. 759A. Cooperative agreements.
Sec. 759B. Eligibility for grants to broadcasting systems.
Chapter 2--Rural Community Advancement Program
Sec. 761. Rural community advancement program.
Sec. 762. Simplified, uniform application for assistance from all
Federal rural development programs.
Sec. 763. Community facilities grant program.
Subtitle C--Amendments to the Rural Electrification Act of 1936
Sec. 771. Purposes; investigations and reports.
Sec. 772. Authorization of appropriations.
Sec. 773. Loans for electrical plants and transmission lines.
Sec. 774. Loans for electrical and plumbing equipment.
Sec. 775. Testimony on budget requests.
Sec. 776. Transfer of functions of administration created by Executive
order.
Sec. 777. Annual report.
Sec. 778. Prohibition on restricting water and waste facility services
to electric customers.
Sec. 779. Telephone loan terms and conditions.
Sec. 780. Privatization program.
Sec. 781. Rural Business Incubator Fund.
Subtitle D--Miscellaneous Rural Development Provisions
Sec. 791. Interest rate formula.
Sec. 792. Grants for financially stressed farmers, dislocated farmers,
and rural families.
Sec. 793. Fund for Rural America.
Sec. 794. Under Secretary of Agriculture for Rural Economic and
Community Development renamed the Under Secretary of
Agriculture for Rural Development.
TITLE VIII--RESEARCH, EXTENSION, AND EDUCATION
Subtitle A--Modification and Extension of Activities Under 1977 Act
Sec. 801. Purposes of agricultural research, extension, and education.
Sec. 802. National Agricultural Research, Extension, Education, and
Economics Advisory Board.
Sec. 803. Federal Advisory Committee Act exemption for Federal-State
cooperative programs.
Sec. 804. Coordination and planning of agricultural research, extension,
and education.
Sec. 805. Grants and fellowships for food and agricultural sciences
education.
Sec. 806. Grants for research on the production and marketing of
alcohols and industrial hydrocarbons from agricultural
commodities and forest products.
Sec. 807. Policy research centers.
Sec. 808. Human nutrition intervention and health promotion research
program.
Sec. 809. Food and nutrition education program.
Sec. 810. Purposes and findings relating to animal health and disease
research.
[[Page 110 STAT. 895]]
Sec. 811. Animal health and disease continuing research.
Sec. 812. Animal health and disease national or regional research.
Sec. 813. Grant program to upgrade agricultural and food sciences
facilities at 1890 land-grant colleges.
Sec. 814. National research and training centennial centers.
Sec. 815. Programs for Hispanic-serving institutions.
Sec. 816. International agricultural research and extension.
Sec. 817. Authorization of appropriations for agricultural research
programs.
Sec. 818. Authorization of appropriations for extension education.
Sec. 819. Supplemental and alternative crops research.
Sec. 820. Aquaculture assistance programs.
Sec. 821. Authorization of appropriations for rangeland research.
Subtitle B--Modification and Extension of Activities Under 1990 Act
Sec. 831. Water quality research, education, and coordination.
Sec. 832. National genetics resources program.
Sec. 833. National agricultural weather information system.
Sec. 834. Livestock product safety and inspection program.
Sec. 835. Plant genome mapping program.
Sec. 836. Certain specialized research programs.
Sec. 837. Agricultural telecommunications program.
Sec. 838. National centers for agricultural product quality research.
Sec. 839. Red meat safety research center.
Sec. 840. Indian reservation extension agent program.
Sec. 841. Assistive technology program for farmers with disabilities.
Sec. 842. National rural information center clearinghouse.
Sec. 843. Global climate change.
Subtitle C--Repeal of Certain Activities and Authorities
Sec. 851. Subcommittee on Food, Agricultural, and Forestry Research.
Sec. 852. Joint Council on Food and Agricultural Sciences.
Sec. 853. Agricultural Science and Technology Review Board.
Sec. 854. Animal Health Science Research Advisory Board.
Sec. 855. Resident instruction program at 1890 land-grant colleges.
Sec. 856. Grants to States for international trade development centers.
Sec. 857. Rangeland research.
Sec. 858. Composting research and extension program.
Sec. 859. Education program regarding handling of agricultural chemicals
and agricultural chemical containers.
Sec. 860. Program administration regarding sustainable agriculture
research and education.
Sec. 861. Research regarding production, preparation, processing,
handling, and storage of agricultural products.
Sec. 862. Plant and animal pest and disease control program.
Sec. 863. Certain specialized research programs.
Sec. 864. Commission on agricultural research facilities.
Sec. 865. Special grant to study constraints on agricultural trade.
Sec. 866. Pilot project to coordinate food and nutrition education
programs.
Sec. 867. Demonstration areas for rural economic development.
Sec. 868. Technical advisory committee regarding global climate change.
Sec. 869. Committee of nine under Hatch Act of 1887.
Sec. 870. Cotton crop reports.
Sec. 871. Rural economic and business development and additional
research grants under title V of Rural Development Act of
1972.
Sec. 872. Human nutrition research.
Sec. 873. Grants to upgrade 1890 land-grant college extension
facilities.
Sec. 874. Indian subsistence farming demonstration grant program.
Subtitle D--Miscellaneous Research Provisions
Sec. 881. Critical agricultural materials research.
Sec. 882. Memorandum of agreement regarding 1994 Institutions.
Sec. 883. Smith-Lever Act funding for 1890 land-grant colleges,
including Tuskegee University.
Sec. 884. Agricultural research facilities.
Sec. 885. National competitive research initiative.
Sec. 886. Rural development research and education.
Sec. 887. Dairy goat research program.
Sec. 888. Competitive grants for research to eradicate and control brown
citrus aphid and citrus tristeza virus.
Sec. 889. Stuttgart National Aquaculture Research Center.
Sec. 890. Expansion of authorities related to National Arboretum.
[[Page 110 STAT. 896]]
Sec. 891. Transfer of aquacultural research center.
Sec. 892. Use of remote sensing data and other data to anticipate
potential food, feed, and fiber shortages or excesses and to
provide timely information to assist farmers with planting
decisions.
Sec. 893. Sense of Senate regarding methyl bromide alternative research
and extension activities.
Subtitle E--Research Authority After Fiscal Year 1997
Sec. 897. Authorization of appropriations.
Sec. 898. Activities subject to availability of appropriations.
TITLE IX--MISCELLANEOUS
Subtitle A--Commercial Transportation of Equine for Slaughter
Sec. 901. Findings.
Sec. 902. Definitions.
Sec. 903. Regulation of commercial transportation of equine for
slaughter.
Sec. 904. Limitation of authority to equine for slaughter.
Sec. 905. Effective date.
Subtitle B--General Provisions
Sec. 911. Interstate quarantine.
Sec. 912. Cotton classification services.
Sec. 913. Plant variety protection for certain tuber propagated plant
varieties.
Sec. 914. Swine health protection.
Sec. 915. Designation of Mount Pleasant National Scenic Area.
Sec. 916. Pseudorabies eradication program.
Sec. 917. Collection and use of agricultural quarantine and inspection
fees.
Sec. 918. Meat and poultry inspection.
Sec. 919. Reimbursable agreements.
Sec. 920. Overseas tort claims.
Sec. 921. Operation of Graduate School of Department of Agriculture as
nonappropriated fund instrumentality.
Sec. 922. Student internship programs.
Sec. 923. Conveyance of excess Federal personal property.
Sec. 924. Conveyance of land to White Oak Cemetery.
Sec. 925. Sale of land by the University of Arkansas.
Sec. 926. Designation of Dale Bumpers Small Farms Research Center.
Sec. 927. Department of Agriculture Washington Area Strategic Space
Plan.
Sec. 928. Severability.
<<NOTE: Agricultural Market Transition Act. Contracts. Loans.>> TITLE
I--AGRICULTURAL MARKET TRANSITION ACT
Subtitle A--Short Title, Purpose, and Definitions
SEC. 101. <<NOTE: 7 USC 7201.>> SHORT TITLE AND PURPOSE.
(a) Short Title.--This title may be cited as the ``Agricultural
Market Transition Act''.
(b) Purpose.--It is the purpose of this title--
(1) to authorize the use of binding production flexibility
contracts between the United States and agricultural producers
to support farming certainty and flexibility while ensuring
continued compliance with farm conservation and wetland
protection requirements;
(2) to make nonrecourse marketing assistance loans and loan
deficiency payments available for certain crops;
(3) to improve the operation of farm programs for milk,
peanuts, and sugar; and
(4) to establish a commission to undertake a comprehensive
review of past and future production agriculture in the United
States.
[[Page 110 STAT. 897]]
SEC. 102. <<NOTE: 7 USC 7202.>> DEFINITIONS.
In this title:
(1) Agricultural act of 1949.--Except in section 171, the
term ``Agricultural Act of 1949'' means the Agricultural Act of
1949 (7 U.S.C. 1421 et seq.), as in effect prior to the
suspensions under section 171(b)(1).
(2) Considered planted.--The term ``considered planted''
means acreage that is considered planted under title V of the
Agricultural Act of 1949 (7 U.S.C. 1461 et seq.) and such other
acreage as the Secretary considers fair and equitable.
(3) Contract.--The terms ``contract'' and ``production
flexibility contract'' mean a production flexibility contract
entered into under section 111.
(4) Contract acreage.--The term ``contract acreage'' means 1
or more crop acreage bases established for contract commodities
under title V of the Agricultural Act of 1949 (7 U.S.C. 1461 et
seq.) that would have been in effect for the 1996 crop (but for
suspension under section 171(b)(1)).
(5) Contract commodity.--The term ``contract commodity''
means wheat, corn, grain sorghum, barley, oats, upland cotton,
and rice.
(6) Contract payment.--The term ``contract payment'' means a
payment made under this subtitle pursuant to a contract.
(7) Department.--The term ``Department'' means the
Department of Agriculture.
(8) Extra long staple cotton.--The term ``extra long staple
cotton'' means cotton that--
(A) is produced from pure strain varieties of the
Barbadense species or any hybrid thereof, or other
similar types of extra long staple cotton, designated by
the Secretary, having characteristics needed for various
end uses for which United States upland cotton is not
suitable and grown in irrigated cotton-growing regions
of the United States designated by the Secretary or
other areas designated by the Secretary as suitable for
the production of the varieties or types; and
(B) is ginned on a roller-type gin or, if authorized
by the Secretary, ginned on another type gin for
experimental purposes.
(9) Farm program payment yield.--The term ``farm program
payment yield'' means the farm program payment yield established
for the 1995 crop of a contract commodity under section 505 of
the Agricultural Act of 1949 (7 U.S.C. 1465). The Secretary
shall adjust the farm program payment yield for the 1995 crop of
a contract commodity to account for any additional yield
payments made with respect to that crop under subsection (b)(2)
of the section.
(10) Loan commodity.--The term ``loan commodity'' means each
contract commodity, extra long staple cotton, and oilseed.
(11) Oilseed.--The term ``oilseed'' means a crop of
soybeans, sunflower seed, rapeseed, canola, safflower, flaxseed,
mustard seed, or, if designated by the Secretary, other
oilseeds.
(12) Producer.--The term ``producer'' means an owner,
operator, landlord, tenant, or sharecropper who shares in the
risk of producing a crop and who is entitled to share in the
crop available for marketing from the farm, or would have
[[Page 110 STAT. 898]]
shared had the crop been produced. In determining whether a
grower of hybrid seed is a producer, the Secretary shall not
take into consideration the existence of a hybrid seed contract.
(13) Secretary.--The term ``Secretary'' means the Secretary
of Agriculture.
(14) State.--The term ``State'' means each of the several
States of the United States, the District of Columbia, the
Commonwealth of Puerto Rico, and any other territory or
possession of the United States.
(15) United states.--The term ``United States'', when used
in a geographical sense, means all of the States.
Subtitle B--Production Flexibility Contracts
SEC. 111. <<NOTE: 7 USC 7211.>> AUTHORIZATION FOR USE OF PRODUCTION
FLEXIBILITY CONTRACTS.
(a) Offer and Terms.--The Secretary shall offer to enter into a
production flexibility contract with an eligible owner or producer
described in subsection (b) on a farm containing eligible cropland.
Under the terms of a contract, the owner or producer shall agree, in
exchange for annual contract payments, to--
(1) comply with applicable conservation requirements under
subtitle B of title XII of the Food Security Act of 1985 (16
U.S.C. 3811 et seq.);
(2) comply with applicable wetland protection requirements
under subtitle C of title XII of the Act (16 U.S.C. 3821 et
seq.);
(3) comply with the planting flexibility requirements of
section 118; and
(4) use the land subject to the contract for an agricultural
or related activity, but not for a nonagricultural commercial or
industrial use, as determined by the Secretary.
(b) Eligible Owners and Producers Described.--The following
producers and owners shall be eligible to enter into a contract:
(1) An owner of eligible cropland who assumes all or a part
of the risk of producing a crop.
(2) A producer (other than an owner) on eligible cropland
with a share-rent lease of the eligible cropland, regardless of
the length of the lease, if the owner enters into the same
contract.
(3) A producer (other than an owner) on eligible cropland
who cash rents the eligible cropland under a lease expiring on
or after September 30, 2002, in which case the owner is not
required to enter into the contract.
(4) A producer (other than an owner) on eligible cropland
who cash rents the eligible cropland under a lease expiring
before September 30, 2002. The owner of the eligible cropland
may also enter into the same contract. If the producer elects to
enroll less than 100 percent of the eligible cropland in the
contract, the consent of the owner is required.
(5) An owner of eligible cropland who cash rents the
eligible cropland and the lease term expires before September
30, 2002, if the tenant declines to enter into a contract. In
the case of an owner covered by this paragraph, contract
payments
[[Page 110 STAT. 899]]
shall not begin under a contract until the lease held by the
tenant ends.
(6) An owner or producer described in any preceding
paragraph regardless of whether the owner or producer purchased
catastrophic risk protection for a 1996 crop under section
508(b) of the Federal Crop Insurance Act (7 U.S.C. 1508(b)).
(c) Tenants and Sharecroppers.--In carrying out this subtitle, the
Secretary shall provide adequate safeguards to protect the interests of
tenants and sharecroppers.
(d) Eligible Cropland Described.--Land shall be considered to be
cropland eligible for coverage under a contract only if the land has
contract acreage attributable to the land and--
(1) for at least 1 of the 1991 through 1995 crops, at least
a portion of the land was enrolled in the acreage reduction
program authorized for a crop of a contract commodity under
section 101B, 103B, 105B, or 107B of the Agricultural Act of
1949 or was considered planted;
(2) was subject to a conservation reserve contract under
section 1231 of the Food Security Act of 1985 (16 U.S.C. 3831)
whose term expired, or was voluntarily terminated, on or after
January 1, 1995; or
(3) is released from coverage under a conservation reserve
contract by the Secretary during the period beginning on January
1, 1995, and ending on the date specified in section 112(a)(2).
(e) Quantity of Eligible Cropland Covered by Contract.--Subject to
subsection (b)(4), an owner or producer may enroll as contract acreage
all or a portion of the eligible cropland on the farm.
(f) Voluntary Reduction in Contract Acreage.--Subject to subsection
(b)(4), an owner or producer who enters into a contract may subsequently
reduce the quantity of contract acreage covered by the contract.
SEC. 112. <<NOTE: 7 USC 7212.>> ELEMENTS OF CONTRACTS.
(a) Time for Contracting.--
(1) Commencement.--To the extent practicable, the Secretary
shall commence entering into contracts not later than 45 days
after the date of enactment of this title.
(2) Deadline.--Except as provided in paragraph (3), the
Secretary may not enter into a contract after August 1, 1996.
(3) Conservation reserve lands.--
(A) In general.--At the beginning of each fiscal
year, the Secretary shall allow an eligible owner or
producer on a farm covered by a conservation reserve
contract entered into under section 1231 of the Food
Security Act of 1985 (16 U.S.C. 3831) that terminates
after the date specified in paragraph (2) to enter into
or expand a production flexibility contract to cover the
contract acreage of the farm that was subject to the
former conservation reserve contract.
(B) Amount.--Contract payments made for contract
acreage under this paragraph shall be made at the rate
and amount applicable to the annual contract payment
level for the applicable crop. For the fiscal year in
which the conservation reserve contract is terminated,
the owner or producer subject to the production
flexibility contract
[[Page 110 STAT. 900]]
may elect to receive either contract payments or a
prorated payment under the conservation reserve
contract, but not both.
(b) Duration of Contract.--
(1) Beginning date.--The term of a contract shall begin
with--
(A) the 1996 crop of a contract commodity; or
(B) in the case of acreage that was subject to a
conservation reserve contract described in subsection
(a)(3), the date the production flexibility contract was
entered into or expanded to cover the acreage.
(2) Ending date.--The term of a contract shall extend
through the 2002 crop, unless earlier terminated by the owner or
producer.
(c) Estimation of Contract Payments.--At the time the Secretary
enters into a contract, the Secretary shall provide an estimate of the
minimum contract payments anticipated to be made during at least the
first fiscal year for which contract payments will be made.
(d) Time for Payment.--
(1) In general.--An annual contract payment shall be made
not later than September 30 of each of fiscal years 1996 through
2002.
(2) Advance payments.--
(A) Fiscal year 1996.--At the option of the owner or
producer, 50 percent of the contract payment for fiscal
year 1996 shall be made not later than 30 days after the
date on which the contract is entered into and approved
by the Secretary and the owner or producer.
(B) Subsequent fiscal years.--At the option of the
owner or producer for fiscal year 1997 and each
subsequent fiscal year, 50 percent of the annual
contract payment shall be made on December 15 or January
15 of the fiscal year. The owner or producer may change
the date selected under this subparagraph for a
subsequent fiscal year by providing advance notice to
the Secretary.
SEC. 113. <<NOTE: 7 USC 7213.>> AMOUNTS AVAILABLE FOR CONTRACT PAYMENTS.
(a) Fiscal Year Amounts.--The Secretary shall, to the maximum extent
practicable, expend the following amounts to satisfy the obligations of
the Secretary under all contracts:
(1) For fiscal year 1996, $5,570,000,000.
(2) For fiscal year 1997, $5,385,000,000.
(3) For fiscal year 1998, $5,800,000,000.
(4) For fiscal year 1999, $5,603,000,000.
(5) For fiscal year 2000, $5,130,000,000.
(6) For fiscal year 2001, $4,130,000,000.
(7) For fiscal year 2002, $4,008,000,000.
(b) Allocation.--The amount made available for a fiscal year under
subsection (a) shall be allocated as follows:
(1) For wheat, 26.26 percent.
(2) For corn, 46.22 percent.
(3) For grain sorghum, 5.11 percent.
(4) For barley, 2.16 percent.
(5) For oats, 0.15 percent.
(6) For upland cotton, 11.63 percent.
(7) For rice, 8.47 percent.
[[Page 110 STAT. 901]]
(c) Adjustment.--The Secretary shall adjust the amounts allocated
for each contract commodity under subsection (b) for a particular fiscal
year by--
(1) adding an amount equal to the sum of all repayments of
deficiency payments required under section 114(a)(2) of the
Agricultural Act of 1949 (7 U.S.C. 1445j(a)(2)) for the
commodity;
(2) adding an amount equal to the sum of all refunds of
contract payments received during the preceding fiscal year
under section 116 for the commodity; and
(3) subtracting an amount equal to the amount, if any,
necessary during that fiscal year to satisfy payment
requirements for the commodity under sections 103B, 105B, or
107B of the Agricultural Act of 1949 for the 1994 and 1995 crop
years.
(d) Additional Rice Allocation.--In addition to the adjustments
required under subsection (c), the amount allocated under subsection (b)
for rice contract payments shall be increased by $8,500,000 for each of
fiscal years 1997 through 2002.
(e) Exclusion of Certain Amounts From Contract Payments.--Any amount
added pursuant to paragraphs (1) and (2) of subsection (c) to the amount
available under subsection (a) for a fiscal year and paid to owners and
producers under a contract shall not be treated as a contract payment
for purposes of section 115(a) of this title or section 1001(1) of the
Food Security Act of 1985 (7 U.S.C. 1308(1)). However, the amount of a
payment covered by this subsection may not exceed $50,000 per person.
(f) Effect of Payment Limitation.--The amount available under
subsection (a) for a fiscal year shall be reduced by an amount equal to
the total amount of contract payments for the fiscal year that owners
and producers forgo as a result of operation of the payment limitation
under section 1001(1) of the Food Security Act of 1985 (7 U.S.C.
1308(1)).
SEC. 114. <<NOTE: 7 USC 7214.>> DETERMINATION OF CONTRACT PAYMENTS UNDER
CONTRACTS.
(a) Individual Payment Quantity of Contract Commodities.--For each
contract, the payment quantity of a contract commodity for each fiscal
year shall be equal to the product of--
(1) 85 percent of the contract acreage; and
(2) the farm program payment yield.
(b) Annual Payment Quantity of Contract Commodities.--The payment
quantity of each contract commodity covered by all contracts for each
fiscal year shall be equal to the sum of the amounts calculated under
subsection (a) for each individual contract.
(c) Annual Payment Rate.--The payment rate for a contract commodity
for each fiscal year shall be equal to--
(1) the amount made available under section 113 for the
contract commodity for the fiscal year; divided by
(2) the amount determined under subsection (b) for the
fiscal year.
(d) Annual Payment Amount.--The amount to be paid under a contract
in effect for each fiscal year with respect to all contract commodities
covered by the contract shall be equal to the sum of the products of--
[[Page 110 STAT. 902]]
(1) the payment quantity determined under subsection (a) for
each of the contract commodities covered by the contract; and
(2) the corresponding payment rate for the contract
commodity in effect under subsection (c).
(e) Reduction in Payment Amount.--The contract payment determined
under subsection (d) for an owner or producer for a fiscal year shall be
immediately reduced by the amount of any repayment of deficiency
payments that is required under section 114(a)(2) of the Agricultural
Act of 1949 (7 U.S.C. 1445j(a)(2)) and is not repaid as of the date the
contract payment is determined. The Secretary shall be required to
collect the required repayment, or any claim based on the required
repayment, as soon as the contract payment is determined.
(f) Assignment of Contract Payments.--The provisions of section 8(g)
of the Soil Conservation and Domestic Allotment Act (16 U.S.C. 590h(g))
(relating to assignment of payments) shall apply to contract payments
under this section. The owner or producer making the assignment, or the
assignee, shall provide the Secretary with notice, in such manner as the
Secretary may require in the contract, of any assignment made under this
subsection.
(g) Sharing of Contract Payments.--The Secretary shall provide for
the sharing of contract payments among the owners and producers subject
to the contract on a fair and equitable basis.
SEC. 115. <<NOTE: 7 USC 7215.>> PAYMENT LIMITATIONS.
(a) Applicability of Payment Limitations.--Sections 1001 through
1001C of the Food Security Act of 1985 (7 U.S.C. 1308 through 1308-3),
as amended by this section, shall be applicable to contract payments
made under this subtitle.
(b) Payment Limitations.--Section 1001 of the Food Security Act of
1985 (7 U.S.C. 1308) is amended by striking paragraphs (1) through (4)
and inserting the following:
``(1) Limitation on payments under production flexibility
contracts.--The total amount of contract payments made under the
Agricultural Market Transition Act to a person under 1 or more
production flexibility contracts during any fiscal year may not
exceed $40,000.
``(2) Limitation on marketing loan gains and loan deficiency
payments.--The total amount of the payments specified in
paragraph (3) that a person shall be entitled to receive under
the Agricultural Market Transition Act for 1 or more contract
commodities and oilseeds during any crop year may not exceed
$75,000.
``(3) Description of payments subject to limitation.--The
payments referred to in paragraph (2) are the following:
``(A) Any gain realized by a producer from repaying
a marketing assistance loan under section 131 of the
Agricultural Market Transition Act for a crop of any
loan commodity at a lower level than the original loan
rate established for the loan commodity under section
132 of the Act.
``(B) Any loan deficiency payment received for a
loan commodity under section 135 of the Act.
``(4) Definitions.--In this title, the terms `contract
commodity', `contract payment', `loan commodity', `oilseed', and
`production flexibility contract' have the meaning given those
[[Page 110 STAT. 903]]
terms in section 102 of the Agricultural Market Transition
Act.''.
(c) Conforming Amendments.--
(1) Section 1001A of the Food Security Act of 1985 (7 U.S.C.
1308-1) is amended--
(A) in subsection (a)(1), by striking ``under the
Agricultural Act of 1949 (7 U.S.C. 1421 et seq.)''; and
(B) in subsection (b)(1), by striking ``under the
Agricultural Act of 1949''.
(2) Section 1001C(a) of the Act (7 U.S.C. 1308-3(a)) is
amended--
(A) by striking ``For each of the 1991 through 1997
crops, any'' and inserting ``Any'';
(B) by striking ``production adjustment payments,
price support program loans, payments, or benefits made
available under the Agricultural Act of 1949 (7 U.S.C.
1421 et seq.),'' and inserting ``loans or payments made
available under the Agricultural Market Transition
Act,''; and
(C) by striking ``during the 1989 through 1997 crop
years''.
SEC. 116. <<NOTE: 7 USC 7216.>> VIOLATIONS OF CONTRACT.
(a) Termination of Contract For Violation.--Except as provided in
subsection (b), if an owner or producer subject to a contract violates a
requirement of the contract specified in section 111(a), the Secretary
shall terminate the contract with respect to the owner or producer on
each farm in which the owner or producer has an interest. On the
termination, the owner or producer shall forfeit all rights to receive
future contract payments on each farm in which the owner or producer has
an interest and shall refund to the Secretary all contract payments
received by the owner or producer during the period of the violation,
together with interest on the contract payments as determined by the
Secretary.
(b) Refund or Adjustment.--If the Secretary determines that a
violation does not warrant termination of the contract under subsection
(a), the Secretary may require the owner or producer subject to the
contract--
(1) to refund to the Secretary that part of the contract
payments received by the owner or producer during the period of
the violation, together with interest on the contract payments
as determined by the Secretary; or
(2) to accept a reduction in the amount of future contract
payments that is proportionate to the severity of the violation,
as determined by the Secretary.
(c) Foreclosure.--
(1) Effect of foreclosure.--An owner or producer subject to
a contract may not be required to make repayments to the
Secretary of amounts received under the contract if the contract
acreage has been foreclosed on and the Secretary determines that
forgiving the repayments is appropriate to provide fair and
equitable treatment.
(2) Resumption of operation.--This subsection shall not void
the responsibilities of the owner or producer under the contract
if the owner or producer continues or resumes operation, or
control, of the contract acreage. On the resumption of operation
or control over the contract acreage by the owner
[[Page 110 STAT. 904]]
or producer, the provisions of the contract in effect on the
date of the foreclosure shall apply.
(d) Review.--A determination of the Secretary under this section
shall be considered to be an adverse decision for purposes of the
availability of administrative review of the determination.
SEC. 117. <<NOTE: 7 USC 7217.>> TRANSFER OR CHANGE OF INTEREST IN LANDS
SUBJECT TO CONTRACT.
(a) Termination.--Except as provided in subsection (c), a transfer
of (or change in) the interest of an owner or producer subject to a
contract in the contract acreage covered by the contract shall result in
the termination of the contract with respect to the acreage, unless the
transferee or owner of the acreage agrees to assume all obligations
under the contract. The termination shall be effective on the date of
the transfer or change.
(b) Modification.--At the request of the transferee or owner, the
Secretary may modify the contract if the modifications are consistent
with the objectives of this subtitle, as determined by the Secretary.
(c) Exception.--If an owner or producer who is entitled to a
contract payment dies, becomes incompetent, or is otherwise unable to
receive the contract payment, the Secretary shall make the payment, in
accordance with regulations prescribed by the Secretary.
SEC. 118. <<NOTE: 7 USC 7218.>> PLANTING FLEXIBILITY.
(a) Permitted Crops.--Subject to subsection (b), any commodity or
crop may be planted on contract acreage on a farm.
(b) Limitations and Exceptions Regarding Fruits and Vegetables.--
(1) Limitations.--The planting of fruits and vegetables
(other than lentils, mung beans, and dry peas) shall be
prohibited on contract acreage.
(2) Exceptions.--Paragraph (1) shall not limit the planting
of a fruit or vegetable--
(A) in any region in which there is a history of
double-cropping of contract commodities with fruits or
vegetables, as determined by the Secretary, in which
case the double-cropping shall be permitted;
(B) on a farm that the Secretary determines has a
history of planting fruits or vegetables on contract
acreage, except that a contract payment shall be reduced
by an acre for each acre planted to the fruit or
vegetable; or
(C) by a producer who the Secretary determines has
an established planting history of a specific fruit or
vegetable, except that--
(i) the quantity planted may not exceed the
producer's average annual planting history of the
fruit or vegetable in the 1991 through 1995 crop
years (excluding any crop year in which no
plantings were made), as determined by the
Secretary; and
(ii) a contract payment shall be reduced by an
acre for each acre planted to the fruit or
vegetable.
[[Page 110 STAT. 905]]
Subtitle C--Nonrecourse Marketing Assistance Loans and Loan Deficiency
Payments
SEC. 131. <<NOTE: 7 USC 7231.>> AVAILABILITY OF NONRECOURSE MARKETING
ASSISTANCE LOANS.
(a) Nonrecourse Loans Available.--For each of the 1996 through 2002
crops of each loan commodity, the Secretary shall make available to
producers on a farm nonrecourse marketing assistance loans for loan
commodities produced on the farm. The loans shall be made under terms
and conditions that are prescribed by the Secretary and at the loan rate
established under section 132 for the loan commodity.
(b) Eligible Production.--The following production shall be eligible
for a marketing assistance loan under subsection (a):
(1) In the case of a marketing assistance loan for a
contract commodity, any production by a producer on a farm
containing eligible cropland covered by a production flexibility
contract.
(2) In the case of a marketing assistance loan for extra
long staple cotton and oilseeds, any production.
(c) Compliance With Conservation and Wetlands Requirements.--As a
condition of the receipt of a marketing assistance loan under subsection
(a), the producer shall comply with applicable conservation requirements
under subtitle B of title XII of the Food Security Act of 1985 (16
U.S.C. 3811 et seq.) and applicable wetland protection requirements
under subtitle C of title XII of the Act (16 U.S.C. 3821 et seq.) during
the term of the loan.
(d) Additional Outlays Prohibited.--The Secretary shall carry out
this subtitle in such a manner that there are no additional outlays
under this subtitle as a result of the reconstitution of a farm that
occurs as a result of the combination of another farm that does not
contain eligible cropland covered by a production flexibility contract.
SEC. 132. <<NOTE: 7 USC 7232.>> LOAN RATES FOR MARKETING ASSISTANCE
LOANS.
(a) Wheat.--
(1) Loan rate.--Subject to paragraph (2), the loan rate for
a marketing assistance loan under section 131 for wheat shall
be--
(A) not less than 85 percent of the simple average
price received by producers of wheat, as determined by
the Secretary, during the marketing years for the
immediately preceding 5 crops of wheat, excluding the
year in which the average price was the highest and the
year in which the average price was the lowest in the
period; but
(B) not more than $2.58 per bushel.
(2) Stocks to use ratio adjustment.--If the Secretary
estimates for any marketing year that the ratio of ending stocks
of wheat to total use for the marketing year will be--
(A) equal to or greater than 30 percent, the
Secretary may reduce the loan rate for wheat for the
corresponding crop by an amount not to exceed 10 percent
in any year;
(B) less than 30 percent but not less than 15
percent, the Secretary may reduce the loan rate for
wheat for the
[[Page 110 STAT. 906]]
corresponding crop by an amount not to exceed 5 percent
in any year; or
(C) less than 15 percent, the Secretary may not
reduce the loan rate for wheat for the corresponding
crop.
(b) Feed Grains.--
(1) Loan rate for corn.--Subject to paragraph (2), the loan
rate for a marketing assistance loan under section 131 for corn
shall be--
(A) not less than 85 percent of the simple average
price received by producers of corn, as determined by
the Secretary, during the marketing years for the
immediately preceding 5 crops of corn, excluding the
year in which the average price was the highest and the
year in which the average price was the lowest in the
period; but
(B) not more than $1.89 per bushel.
(2) Stocks to use ratio adjustment.--If the Secretary
estimates for any marketing year that the ratio of ending stocks
of corn to total use for the marketing year will be--
(A) equal to or greater than 25 percent, the
Secretary may reduce the loan rate for corn for the
corresponding crop by an amount not to exceed 10 percent
in any year;
(B) less than 25 percent but not less than 12.5
percent, the Secretary may reduce the loan rate for corn
for the corresponding crop by an amount not to exceed 5
percent in any year; or
(C) less than 12.5 percent, the Secretary may not
reduce the loan rate for corn for the corresponding
crop.
(3) Other feed grains.--The loan rate for a marketing
assistance loan under section 131 for grain sorghum, barley, and
oats, respectively, shall be established at such level as the
Secretary determines is fair and reasonable in relation to the
rate that loans are made available for corn, taking into
consideration the feeding value of the commodity in relation to
corn.
(c) Upland Cotton.--
(1) Loan rate.--Subject to paragraph (2), the loan rate for
a marketing assistance loan under section 131 for upland cotton
shall be established by the Secretary at such loan rate, per
pound, as will reflect for the base quality of upland cotton, as
determined by the Secretary, at average locations in the United
States a rate that is not less than the smaller of--
(A) 85 percent of the average price (weighted by
market and month) of the base quality of cotton as
quoted in the designated United States spot markets
during 3 years of the 5-year period ending July 31 of
the year preceding the year in which the crop is
planted, excluding the year in which the average price
was the highest and the year in which the average price
was the lowest in the period; or
(B) 90 percent of the average, for the 15-week
period beginning July 1 of the year preceding the year
in which the crop is planted, of the 5 lowest-priced
growths of the growths quoted for Middling 1\3/32\-inch
cotton C.I.F. Northern Europe (adjusted downward by the
average difference during the period April 15 through
October 15 of the year preceding the year in which the
crop is planted between the average Northern European
price quotation of such
[[Page 110 STAT. 907]]
quality of cotton and the market quotations in the
designated United States spot markets for the base
quality of upland cotton), as determined by the
Secretary.
(2) Limitations.--The loan rate for a marketing assistance
loan for upland cotton shall not be less than $0.50 per pound or
more than $0.5192 per pound.
(d) Extra Long Staple Cotton.--The loan rate for a marketing
assistance loan under section 131 for extra long staple cotton shall
be--
(1) not less than 85 percent of the simple average price
received by producers of extra long staple cotton, as determined
by the Secretary, during 3 years of the 5-year period ending
July 31 of the year preceding the year in which the crop is
planted, excluding the year in which the average price was the
highest and the year in which the average price was the lowest
in the period; but
(2) not more than $0.7965 per pound.
(e) Rice.--The loan rate for a marketing assistance loan under
section 131 for rice shall be $6.50 per hundredweight.
(f) Oilseeds.--
(1) Soybeans.--The loan rate for a marketing assistance loan
under section 131 for soybeans shall be--
(A) not less than 85 percent of the simple average
price received by producers of soybeans, as determined
by the Secretary, during the marketing years for the
immediately preceding 5 crops of soybeans, excluding the
year in which the average price was the highest and the
year in which the average price was the lowest in the
period; but
(B) not less than $4.92 or more than $5.26 per
bushel.
(2) Sunflower seed, canola, rapeseed, safflower, mustard
seed, and flaxseed.--The loan rate for a marketing assistance
loan under section 131 for sunflower seed, canola, rapeseed,
safflower, mustard seed, and flaxseed, individually, shall be--
(A) not less than 85 percent of the simple average
price received by producers of sunflower seed,
individually, as determined by the Secretary, during the
marketing years for the immediately preceding 5 crops of
sunflower seed, individually, excluding the year in
which the average price was the highest and the year in
which the average price was the lowest in the period;
but
(B) not less than $0.087 or more than $0.093 per
pound.
(3) Other oilseeds.--The loan rates for a marketing
assistance loan under section 131 for other oilseeds shall be
established at such level as the Secretary determines is fair
and reasonable in relation to the loan rate available for
soybeans, except in no event shall the rate for the oilseeds
(other than cottonseed) be less than the rate established for
soybeans on a per-pound basis for the same crop.
SEC. 133. <<NOTE: 7 USC 7233.>> TERM OF LOANS.
(a) Term of Loan.--In the case of each loan commodity (other than
upland cotton or extra long staple cotton), a marketing assistance loan
under section 131 shall have a term of 9 months beginning
[[Page 110 STAT. 908]]
on the first day of the first month after the month in which the loan is
made.
(b) Special Rule for Cotton.--A marketing assistance loan for upland
cotton or extra long staple cotton shall have a term of 10 months
beginning on the first day of the month in which the loan is made.
(c) Extensions Prohibited.--The Secretary may not extend the term of
a marketing assistance loan for any loan commodity.
SEC. 134. <<NOTE: 7 USC 7234.>> REPAYMENT OF LOANS.
(a) Repayment Rates for Wheat, Feed Grains, and Oilseeds.--The
Secretary shall permit a producer to repay a marketing assistance loan
under section 131 for wheat, corn, grain sorghum, barley, oats, and
oilseeds at a rate that is the lesser of--
(1) the loan rate established for the commodity under
section 132, plus interest (as determined by the Secretary); or
(2) a rate that the Secretary determines will--
(A) minimize potential loan forfeitures;
(B) minimize the accumulation of stocks of the
commodity by the Federal Government;
(C) minimize the cost incurred by the Federal
Government in storing the commodity; and
(D) allow the commodity produced in the United
States to be marketed freely and competitively, both
domestically and internationally.
(b) Repayment Rates for Upland Cotton and Rice.--The Secretary shall
permit producers to repay a marketing assistance loan under section 131
for upland cotton and rice at a rate that is the lesser of--
(1) the loan rate established for the commodity under
section 132, plus interest (as determined by the Secretary); or
(2) the prevailing world market price for the commodity
(adjusted to United States quality and location), as determined
by the Secretary.
(c) Repayment Rates for Extra Long Staple Cotton.--Repayment of a
marketing assistance loan for extra long staple cotton shall be at the
loan rate established for the commodity under section 132, plus interest
(as determined by the Secretary).
(d) <<NOTE: Regulations.>> Prevailing World Market Price.--For
purposes of this section and section 136, the Secretary shall prescribe
by regulation--
(1) a formula to determine the prevailing world market price
for each loan commodity, adjusted to United States quality and
location; and
(2) a mechanism by which the Secretary shall announce
periodically the prevailing world market price for each loan
commodity.
(e) Adjustment of Prevailing World Market Price for Upland Cotton.--
(1) In general.--During the period ending July 31, 2003, the
prevailing world market price for upland cotton (adjusted to
United States quality and location) established under subsection
(d) shall be further adjusted if--
(A) the adjusted prevailing world market price is
less than 115 percent of the loan rate for upland cotton
established under section 132, as determined by the
Secretary; and
[[Page 110 STAT. 909]]
(B) the Friday through Thursday average price
quotation for the lowest-priced United States growth as
quoted for Middling (M) 1\3/32\-inch cotton delivered
C.I.F. Northern Europe is greater than the Friday
through Thursday average price of the 5 lowest-priced
growths of upland cotton, as quoted for Middling (M)
1\3/32\-inch cotton, delivered C.I.F. Northern Europe
(referred to in this section as the ``Northern Europe
price'').
(2) Further adjustment.--Except as provided in paragraph
(3), the adjusted prevailing world market price for upland
cotton shall be further adjusted on the basis of some or all of
the following data, as available:
(A) The United States share of world exports.
(B) The current level of cotton export sales and
cotton export shipments.
(C) Other data determined by the Secretary to be
relevant in establishing an accurate prevailing world
market price for upland cotton (adjusted to United
States quality and location).
(3) Limitation on further adjustment.--The adjustment under
paragraph (2) may not exceed the difference between--
(A) the Friday through Thursday average price for
the lowest-priced United States growth as quoted for
Middling 1\3/32\-inch cotton delivered C.I.F. Northern
Europe; and
(B) the Northern Europe price.
SEC. 135. <<NOTE: 7 USC 7235.>> LOAN DEFICIENCY PAYMENTS.
(a) Availability of Loan Deficiency Payments.--Except as provided in
subsection (d), the Secretary may make loan deficiency payments
available to producers who, although eligible to obtain a marketing
assistance loan under section 131 with respect to a loan commodity,
agree to forgo obtaining the loan for the commodity in return for
payments under this section.
(b) Computation.--A loan deficiency payment under this section shall
be computed by multiplying--
(1) the loan payment rate determined under subsection (c)
for the loan commodity; by
(2) the quantity of the loan commodity that the producers on
a farm are eligible to place under loan but for which the
producers forgo obtaining the loan in return for payments under
this section.
(c) Loan Payment Rate.--For purposes of this section, the loan
payment rate shall be the amount by which--
(1) the loan rate established under section 132 for the loan
commodity; exceeds
(2) the rate at which a loan for the commodity may be repaid
under section 134.
(d) Exception for Extra Long Staple Cotton.--This section shall not
apply with respect to extra long staple cotton.
SEC. 136. <<NOTE: 7 USC 7236.>> SPECIAL MARKETING LOAN PROVISIONS FOR
UPLAND COTTON.
(a) Cotton User Marketing Certificates.--
(1) Issuance.--Subject to paragraph (4), during the period
ending July 31, 2003, the Secretary shall issue marketing
certificates or cash payments to domestic users and exporters
for documented purchases by domestic users and sales for
[[Page 110 STAT. 910]]
export by exporters made in the week following a consecutive 4-
week period in which--
(A) the Friday through Thursday average price
quotation for the lowest-priced United States growth, as
quoted for Middling (M) 1\3/32\-inch cotton, delivered
C.I.F. Northern Europe exceeds the Northern Europe price
by more than 1.25 cents per pound; and
(B) the prevailing world market price for upland
cotton (adjusted to United States quality and location)
does not exceed 130 percent of the loan rate for upland
cotton established under section 132.
(2) Value of certificates or payments.--The value of the
marketing certificates or cash payments shall be based on the
amount of the difference (reduced by 1.25 cents per pound) in
the prices during the 4th week of the consecutive 4-week period
multiplied by the quantity of upland cotton included in the
documented sales.
(3) Administration of marketing certificates.--
(A) Redemption, marketing, or exchange.--The
Secretary shall establish procedures for redeeming
marketing certificates for cash or marketing or exchange
of the certificates for agricultural commodities owned
by the Commodity Credit Corporation in such manner, and
at such price levels, as the Secretary determines will
best effectuate the purposes of cotton user marketing
certificates. Any price restrictions that would
otherwise apply to the disposition of agricultural
commodities by the Commodity Credit Corporation shall
not apply to the redemption of certificates under this
subsection.
(B) Designation of commodities and products.--To the
extent practicable, the Secretary shall permit owners of
certificates to designate the commodities and products,
including storage sites, the owners would prefer to
receive in exchange for certificates. If any certificate
is not presented for redemption, marketing, or exchange
within a reasonable number of days after the issuance of
the certificate (as determined by the Secretary),
reasonable costs of storage and other carrying charges,
as determined by the Secretary, shall be deducted from
the value of the certificate for the period beginning
after the reasonable number of days and ending with the
date of the presentation of the certificate to the
Commodity Credit Corporation.
(C) Transfers.--Marketing certificates issued to
domestic users and exporters of upland cotton may be
transferred to other persons in accordance with
regulations issued by the Secretary.
(4) Exception.--The Secretary shall not issue marketing
certificates or cash payments under paragraph (1) if, for the
immediately preceding consecutive 10-week period, the Friday
through Thursday average price quotation for the lowest priced
United States growth, as quoted for Middling (M) 1\3/32\-inch
cotton, delivered C.I.F. Northern Europe, adjusted for the value
of any certificate issued under this subsection, exceeds the
Northern Europe price by more than 1.25 cents per pound.
[[Page 110 STAT. 911]]
(5) Limitation on expenditures.--Total expenditures under
this subsection shall not exceed $701,000,000 during fiscal
years 1996 through 2002.
(b) Special Import Quota.--
(1) <<NOTE: President.>> Establishment.--The President shall
carry out an import quota program that provides that, during the
period ending July 31, 2003, whenever the Secretary determines
and announces that for any consecutive 10-week period, the
Friday through Thursday average price quotation for the lowest-
priced United States growth, as quoted for Middling (M) 1\3/32\-
inch cotton, delivered C.I.F. Northern Europe, adjusted for the
value of any certificates issued under subsection (a), exceeds
the Northern Europe price by more than 1.25 cents per pound,
there shall immediately be in effect a special import quota.
(2) Quantity.--The quota shall be equal to 1 week's
consumption of upland cotton by domestic mills at the seasonally
adjusted average rate of the most recent 3 months for which data
are available.
(3) Application.--The quota shall apply to upland cotton
purchased not later than 90 days after the date of the
Secretary's announcement under paragraph (1) and entered into
the United States not later than 180 days after the date.
(4) Overlap.--A special quota period may be established that
overlaps any existing quota period if required by paragraph (1),
except that a special quota period may not be established under
this subsection if a quota period has been established under
subsection (c).
(5) Preferential tariff treatment.--The quantity under a
special import quota shall be considered to be an in-quota
quantity for purposes of--
(A) section 213(d) of the Caribbean Basin Economic
Recovery Act (19 U.S.C. 2703(d));
(B) section 204 of the Andean Trade Preference Act
(19 U.S.C. 3203);
(C) section 503(d) of the Trade Act of 1974 (19
U.S.C. 2463(d)); and
(D) General Note 3(a)(iv) to the Harmonized Tariff
Schedule.
(6) Definition.--In this subsection, the term ``special
import quota'' means a quantity of imports that is not subject
to the over-quota tariff rate of a tariff-rate quota.
(c) Limited Global Import Quota for Upland Cotton.--
(1) <<NOTE: President.>> In general.--The President shall
carry out an import quota program that provides that whenever
the Secretary determines and announces that the average price of
the base quality of upland cotton, as determined by the
Secretary, in the designated spot markets for a month exceeded
130 percent of the average price of such quality of cotton in
the markets for the preceding 36 months, notwithstanding any
other provision of law, there shall immediately be in effect a
limited global import quota subject to the following conditions:
(A) Quantity.--The quantity of the quota shall be
equal to 21 days of domestic mill consumption of upland
cotton at the seasonally adjusted average rate of the
most recent 3 months for which data are available.
(B) Quantity if prior quota.--If a quota has been
established under this subsection during the preceding
12
[[Page 110 STAT. 912]]
months, the quantity of the quota next established under
this subsection shall be the smaller of 21 days of
domestic mill consumption calculated under subparagraph
(A) or the quantity required to increase the supply to
130 percent of the demand.
(C) Preferential tariff treatment.--The quantity
under a limited global import quota shall be considered
to be an in-quota quantity for purposes of--
(i) section 213(d) of the Caribbean Basin
Economic Recovery Act (19 U.S.C. 2703(d));
(ii) section 204 of the Andean Trade
Preference Act (19 U.S.C. 3203);
(iii) section 503(d) of the Trade Act of 1974
(19 U.S.C. 2463(d)); and
(iv) General Note 3(a)(iv) to the Harmonized
Tariff Schedule.
(D) Definitions.--In this subsection:
(i) Supply.--The term ``supply'' means, using
the latest official data of the Bureau of the
Census, the Department of Agriculture, and the
Department of the Treasury--
(I) the carry-over of upland cotton
at the beginning of the marketing year
(adjusted to 480-pound bales) in which
the quota is established;
(II) production of the current crop;
and
(III) imports to the latest date
available during the marketing year.
(ii) Demand.--The term ``demand'' means--
(I) the average seasonally adjusted
annual rate of domestic mill consumption
during the most recent 3 months for
which data are available; and
(II) the larger of--
(aa) average exports of
upland cotton during the
preceding 6 marketing years; or
(bb) cumulative exports of
upland cotton plus outstanding
export sales for the marketing
year in which the quota is
established.
(iii) Limited global import quota.--The term
``limited global import quota'' means a quantity
of imports that is not subject to the over-quota
tariff rate of a tariff-rate quota.
(E) Quota entry period.--When a quota is established
under this subsection, cotton may be entered under the
quota during the 90-day period beginning on the date the
quota is established by the Secretary.
(2) No overlap.--Notwithstanding paragraph (1), a quota
period may not be established that overlaps an existing quota
period or a special quota period established under subsection
(b).
SEC. 137. <<NOTE: 7 USC 7237.>> AVAILABILITY OF RECOURSE LOANS FOR HIGH
MOISTURE FEED GRAINS AND SEED COTTON.
(a) High Moisture Feed Grains.--
(1) Recourse loans available.--For each of the 1996 through
2002 crops of corn and grain sorghum, the Secretary shall make
available recourse loans, as determined by the
[[Page 110 STAT. 913]]
Secretary, to producers on a farm containing eligible cropland
covered by a production flexibility contract who--
(A) normally harvest all or a portion of their crop
of corn or grain sorghum in a high moisture state;
(B) present--
(i) certified scale tickets from an inspected,
certified commercial scale, including a licensed
warehouse, feedlot, feed mill, distillery, or
other similar entity approved by the Secretary,
pursuant to regulations issued by the Secretary;
or
(ii) field or other physical measurements of
the standing or stored crop in regions of the
United States, as determined by the Secretary,
that do not have certified commercial scales from
which certified scale tickets may be obtained
within reasonable proximity of harvest operation;
(C) certify that they were the owners of the feed
grain at the time of delivery to, and that the quantity
to be placed under loan under this subsection was in
fact harvested on the farm and delivered to, a feedlot,
feed mill, or commercial or on-farm high-moisture
storage facility, or to a facility maintained by the
users of corn and grain sorghum in a high moisture
state; and
(D) comply with deadlines established by the
Secretary for harvesting the corn or grain sorghum and
submit applications for loans under this subsection
within deadlines established by the Secretary.
(2) Eligibility of acquired feed grains.--A loan under this
subsection shall be made on a quantity of corn or grain sorghum
of the same crop acquired by the producer equivalent to a
quantity determined by multiplying--
(A) the acreage of the corn or grain sorghum in a
high moisture state harvested on the producer's farm; by
(B) the lower of the farm program payment yield or
the actual yield on a field, as determined by the
Secretary, that is similar to the field from which the
corn or grain sorghum was obtained.
(3) High moisture state defined.--In this subsection, the
term ``high moisture state'' means corn or grain sorghum having
a moisture content in excess of Commodity Credit Corporation
standards for marketing assistance loans made by the Secretary
under section 131.
(b) Recourse Loans Available for Seed Cotton.--
(1) Upland cotton.--For each of the 1996 through 2002 crops
of upland cotton, the Secretary shall make available recourse
seed cotton loans, as determined by the Secretary, to producers
on a farm containing eligible cropland covered by a production
flexibility contract.
(2) Extra long staple cotton.--For each of the 1996 through
2002 crops of extra long staple cotton, the Secretary shall make
available recourse seed cotton loans, as determined by the
Secretary, on any production.
(c) Repayment Rates.--Repayment of a recourse loan made under this
section shall be at the loan rate established for the commodity by the
Secretary, plus interest (as determined by the Secretary).
[[Page 110 STAT. 914]]
Subtitle D--Other Commodities
CHAPTER 1--DAIRY
SEC. 141. <<NOTE: 7 USC 7251.>> MILK PRICE SUPPORT PROGRAM.
(a) Support Activities.--The Secretary of Agriculture shall support
the price of milk produced in the 48 contiguous States through the
purchase of cheese, butter, and nonfat dry milk produced from the milk.
(b) Rate.--The price of milk shall be supported at the following
rates per hundredweight for milk containing 3.67 percent butterfat:
(1) During calendar year 1996, $10.35.
(2) During calendar year 1997, $10.20.
(3) During calendar year 1998, $10.05.
(4) During calendar year 1999, $9.90.
(c) Purchase Prices.--The support purchase prices under this section
for each of the products of milk (butter, cheese, and nonfat dry milk)
announced by the Secretary shall be the same for all of that product
sold by persons offering to sell the product to the Secretary. The
purchase prices shall be sufficient to enable plants of average
efficiency to pay producers, on average, a price that is not less than
the rate of price support for milk in effect under subsection (b).
(d) Special Rule for Butter and Nonfat Dry Milk Purchase Prices.--
(1) Allocation of purchase prices.--The Secretary may
allocate the rate of price support between the purchase prices
for nonfat dry milk and butter in a manner that will result in
the lowest level of expenditures by the Commodity Credit
Corporation or achieve such other objectives as the Secretary
considers appropriate. Not later than 10 days after making or
changing an allocation, the Secretary shall notify the Committee
on Agriculture of the House of Representatives and the Committee
on Agriculture, Nutrition, and Forestry of the Senate of the
allocation. Section 553 of title 5, United States Code, shall
not apply with respect to the implementation of this section.
(2) Timing of purchase price adjustments.--The Secretary may
make any such adjustments in the purchase prices for nonfat dry
milk and butter the Secretary considers to be necessary not more
than twice in each calendar year.
(e) Refunds of 1995 and 1996 Assessments.--
(1) Refund required.--The Secretary shall provide for a
refund of the entire reduction required under section 204(h)(2)
of the Agricultural Act of 1949 (7 U.S.C. 1446e(h)(2)), as in
effect on the day before the amendment made by subsection (g),
in the price of milk received by a producer during calendar year
1995 or 1996, if the producer provides evidence that the
producer did not increase marketings in calendar year 1995 or
1996 when compared to calendar year 1994 or 1995, respectively.
(2) Exception.--This subsection shall not apply with respect
to a producer for a particular calendar year if the producer has
already received a refund under section 204(h) of the
Agricultural Act of 1949 for the same fiscal year before the
effective date of this section.
[[Page 110 STAT. 915]]
(3) Treatment of refund.--A refund under this subsection
shall not be considered as any type of price support or payment
for purposes of sections 1211 and 1221 of the Food Security Act
of 1985 (16 U.S.C. 3811 and 3821).
(f) Commodity Credit Corporation.--The Secretary shall carry out the
program authorized by this section through the Commodity Credit
Corporation.
(g) <<NOTE: Effective date.>> Conforming Repeal.--Effective on the
first day of the first month beginning after the date of enactment of
this title, section 204 of the Agricultural Act of 1949 (7 U.S.C. 1446e)
is repealed.
(h) Period of Effectiveness.--This section (other than subsection
(g)) shall be effective only during the period beginning on the first
day of the first month beginning after the date of enactment of this
title and ending on December 31, 1999. The program authorized by this
section shall terminate on December 31, 1999, and shall be considered to
have expired notwithstanding section 257 of the Balanced Budget and
Emergency Deficit Control Act of 1985 (2 U.S.C. 907).
SEC. 142. <<NOTE: 7 USC 7252.>> RECOURSE LOAN PROGRAM FOR COMMERCIAL
PROCESSORS OF DAIRY PRODUCTS.
(a) Recourse Loans Available.--Under such reasonable terms and
conditions as the Secretary may prescribe, the Secretary shall make
recourse loans available to commercial processors of eligible dairy
products to assist the processors to manage inventories of eligible
dairy products and assure a greater degree of price stability for the
dairy industry during the year. The Secretary shall use the funds,
facilities, and authorities of the Commodity Credit Corporation to carry
out this section.
(b) Amount of Loan.--The Secretary shall establish the amount of a
loan for eligible dairy products, which shall reflect a milk equivalent
value of $9.90 per hundredweight of milk containing 3.67 percent
butterfat. The rate of interest charged participants under this section
shall not be less than the rate of interest charged the Commodity Credit
Corporation by the United States Treasury.
(c) Period of Loan.--The original term of a recourse loan made under
this section may not extend beyond the end of the fiscal year in which
the loan is made. At the end of the fiscal year, the Secretary may
extend the loan for an additional period not to exceed the end of the
next fiscal year.
(d) Definition of Eligible Dairy Products.--In this section, the
term ``eligible dairy products'' means cheddar cheese, butter, and
nonfat dry milk.
(e) Effective Date.--This section shall be effective beginning
January 1, 2000.
SEC. 143. <<NOTE: 7 USC 7253.>> CONSOLIDATION AND REFORM OF FEDERAL MILK
MARKETING ORDERS.
(a) Amendment of Orders.--
(1) Required consolidation.--The Secretary shall amend
Federal milk marketing orders issued under section 8c of the
Agricultural Adjustment Act (7 U.S.C. 608c), reenacted with
amendments by the Agricultural Marketing Agreement Act of 1937,
to limit the number of Federal milk marketing orders to not less
than 10 and not more than 14 orders.
(2) Inclusion of california as separate order.--Upon the
petition and approval of California dairy producers in the
[[Page 110 STAT. 916]]
manner provided in section 8c of the Agricultural Adjustment Act
(7 U.S.C. 608c), reenacted with amendments by the Agricultural
Marketing Agreement Act of 1937, the Secretary shall designate
the State of California as a separate Federal milk marketing
order. The order covering California shall have the right to
reblend and distribute order receipts to recognize quota value.
(3) Related issues addressed in consolidation.--Among the
issues the Secretary is authorized to implement as part of the
consolidation of Federal milk marketing orders are the
following:
(A) The use of utilization rates and multiple basing
points for the pricing of fluid milk.
(B) The use of uniform multiple component pricing
when developing 1 or more basic formula prices for
manufacturing milk.
(4) Effect of existing law.--In implementing the
consolidation of Federal milk marketing orders and related
reforms under this subsection, the Secretary may not consider,
or base any decision on, the table contained in section 8c(5)(A)
of the Agricultural Adjustment Act (7 U.S.C. 608c(5)(A)),
reenacted with amendments by the Agricultural Marketing
Agreement Act of 1937, as added by section 131 of the Food
Security Act of 1985.
(b) Expedited Process.--
(1) Use of informal rulemaking.--To implement the
consolidation of Federal milk marketing orders and related
reforms under subsection (a), the Secretary shall use the notice
and comment procedures provided in section 553 of title 5,
United States Code.
(2) Time limitations.--
(A) Proposed amendments.--The Secretary shall
announce the proposed amendments to be made under
subsection (a) not later than 2 years after the date of
enactment of this title.
(B) Final amendments.--The Secretary shall implement
the amendments not later than 3 years after the date of
enactment of this title.
(3) Effect of court order.--The actions authorized by this
subsection are intended to ensure the timely publication and
implementation of new and amended Federal milk marketing orders.
In the event that the Secretary is enjoined or otherwise
restrained by a court order from publishing or implementing the
consolidation and related reforms under subsection (a), the
length of time for which that injunction or other restraining
order is effective shall be added to the time limitations
specified in paragraph (2) thereby extending those time
limitations by a period of time equal to the period of time for
which the injunction or other restraining order is effective.
(c) Failure To Timely Consolidate Orders.--If the Secretary fails to
implement the consolidation required under subsection (a)(1) within the
time period required under subsection (b)(2)(B) (plus any additional
period provided under subsection (b)(3)), the Secretary may not assess
or collect assessments from milk producers or handlers under such
section 8c for marketing order administration and services provided
under such section after the end of
[[Page 110 STAT. 917]]
that period until the consolidation is completed. The Secretary may not
reduce the level of services provided under the section on account of
the prohibition against assessments, but shall rather cover the cost of
marketing order administration and services through funds available for
the Agricultural Marketing Service of the Department.
(d) Report Regarding Further Reforms.--
(1) Report required.--Not later than April 1, 1997, the
Secretary shall submit to Congress a report--
(A) reviewing the Federal milk marketing order
system established pursuant to section 8c of the
Agricultural Adjustment Act (7 U.S.C. 608c), reenacted
with amendments by the Agricultural Marketing Agreement
Act of 1937, in light of the reforms required by
subsection (a);
(B) describing the efforts underway and the progress
made in implementing the reforms required by subsection
(a); and
(C) containing such recommendations as the Secretary
considers appropriate for further improvements and
reforms to the Federal milk marketing order system.
(2) Effect of other laws.--Any limitation imposed by Act of
Congress on the conduct or completion of reports to Congress
shall not apply to the report required under this section,
unless the limitation specifically refers to this section.
SEC. 144. <<NOTE: 7 USC 7254.>> EFFECT ON FLUID MILK STANDARDS IN STATE
OF CALIFORNIA.
Nothing in this Act or any other provision of law shall be construed
to preempt, prohibit, or otherwise limit the authority of the State of
California, directly or indirectly, to establish or continue to effect
any law, regulation, or requirement regarding--
(1) the percentage of milk solids or solids not fat in fluid
milk products sold at retail or marketed in the State of
California; or
(2) the labeling of such fluid milk products with regard to
milk solids or solids not fat.
SEC. 145. <<NOTE: 7 USC 7255.>> MILK MANUFACTURING MARKETING ADJUSTMENT.
(a) Maximum Allowances Established.--No State shall provide for a
manufacturing allowance for the processing of milk in excess of--
(1) $1.65 per hundredweight of milk for milk manufactured
into butter and nonfat dry milk; and
(2) $1.80 per hundredweight of milk for milk manufactured
into cheese.
(b) Manufacturing Allowance Defined.--In this section, the term
``manufacturing allowance'' means--
(1) the amount by which the product price value of butter
and nonfat dry milk manufactured from a hundred pounds of milk
containing 3.5 pounds of butterfat and 8.7 pounds of milk solids
not fat resulting from a State's yield and product price
formulas exceeds the class price for the milk used to produce
those products; or
(2) the amount by which the product price value of cheese
manufactured from a hundred pounds of milk containing 3.5 pounds
of butterfat and 8.7 pounds of milk solids not fat resulting
from a State's yield and product price formulas exceeds the
class price for the milk used to produce cheese.
[[Page 110 STAT. 918]]
(c) Effect of Violation.--If the Secretary determines following a
hearing that a State has in effect a manufacturing allowance that
exceeds the manufacturing allowance authorized in subsection (a), the
Secretary shall suspend purchases of cheddar cheese, butter, and nonfat
dry milk produced in that State until such time as the State complies
with such subsection.
(d) Effective Date; Implementation.--This section (other than
subsection (e)) shall be effective during the period beginning on the
first day of the first month beginning after the date of enactment of
this title and ending on December 31, 1999. During that period, the
Secretary may exercise the authority provided to the Secretary under
this section without regard to the issuance of regulations intended to
carry out this section.
(e) <<NOTE: Effective date.>> Conforming Repeal.--Effective on the
first day of the first month beginning after the date of enactment of
this title, section 102 of the Food, Agriculture, Conservation, and
Trade Act of 1990 (7 U.S.C. 1446e-1) is repealed.
SEC. 146. PROMOTION.
(a) Congressional Purpose.--Section 1999B(a) of the Fluid Milk
Promotion Act of 1990 (7 U.S.C. 6401(a)) is amended--
(1) by redesignating paragraphs (6), (7) and (8) as
paragraphs (7), (8) and (9), respectively; and
(2) by inserting after paragraph (5) the following:
``(6) the congressional purpose underlying this subtitle is
to maintain and expand markets for fluid milk products, not to
maintain or expand any processor's share of those markets and
that the subtitle does not prohibit or restrict individual
advertising or promotion of fluid milk products since the
programs created and funded by this subtitle are not extended to
replace individual advertising and promotion efforts;''.
(b) Congressional Policy.--Section 1999B(b) of the Fluid Milk
Promotion Act of 1990 (7 U.S.C. 6401(b)) is amended to read as follows:
``(b) Policy.--It is declared to be the policy of Congress that it
is in the public interest to authorize the establishment, through the
exercise of powers provided in this subtitle, of an orderly procedure
for developing, financing, through adequate assessments on fluid milk
products produced in the United States and carrying out an effective,
continuous, and coordinated program of promotion, research, and consumer
information designed to strengthen the position of the dairy industry in
the marketplace and maintain and expand domestic and foreign markets and
uses for fluid milk products, the purpose of which is not to compete
with or replace individual advertising or promotion efforts designed to
promote individual brand name or trade name fluid milk products, but
rather to maintain and expand the markets for all fluid milk products,
with the goal and purpose of this subtitle being a national governmental
goal that authorizes and funds programs that result in government speech
promoting government objectives.''.
(c) Research.--Section 1999C(6) of the Fluid Milk Promotion Act of
1990 (7 U.S.C. 6402(6)) is amended to read as follows:
``(6) Research.--The term `research' means market research
to support advertising and promotion efforts, including
educational activities, research directed to product
characteristics, product development, including new products or
improved
[[Page 110 STAT. 919]]
technology in production, manufacturing or processing of milk
and the products of milk.''.
(d) Voting.--
(1) Initial referenda.--Section 1999N(b)(2) of the Fluid
Milk Promotion Act of 1990 (7 U.S.C. 6413(b)(2)) is amended by
striking ``all processors'' and inserting ``fluid milk
processors voting in the referendum''.
(2) Suspension or termination.--Section 1999O(c) of such Act
(7 U.S.C. 6414(c)) is amended--
(A) in paragraph (1), by striking ``all processors''
and inserting ``fluid milk processors voting in the
preceding referendum''; and
(B) in paragraph (2)(B), by striking ``all
processors'' and inserting ``fluid milk processors
voting in the referendum''.
(e) Duration.--Section 1999O(a) of the Fluid Milk Promotion Act of
1990 (7 U.S.C. 6414(a)) is amended by striking ``1996'' and inserting
``2002''.
SEC. 147. <<NOTE: Congress. State listing. 7 USC 7256.>> NORTHEAST
INTERSTATE DAIRY COMPACT.
Congress hereby consents to the Northeast Interstate Dairy Compact
entered into among the States of Connecticut, Maine, Massachusetts, New
Hampshire, Rhode Island and Vermont as specified in section 1(b) Senate
Joint Resolution 28 of the 104th Congress, as placed on the calendar of
the Senate, subject to the following conditions:
(1) Finding of compelling public interest.--Based upon a
finding by the Secretary of a compelling public interest in the
Compact region, the Secretary may grant the States that have
ratified the Northeast Interstate Dairy Compact, as of the date
of enactment of this title, the authority to implement the
Northeast Interstate Dairy Compact.
(2) Limitation on manufacturing price.--The Northeast
Interstate Dairy Compact Commission shall not regulate Class II,
Class III, or Class III-A milk used for manufacturing purposes
or any other milk, other than Class I (fluid) milk, as defined
by a Federal milk marketing order issued under section 8c of the
Agricultural Adjustment Act (7 U.S.C. 608c) reenacted with
amendments by the Agricultural Marketing Agreement Act of 1937.
(3) Duration.--Consent for the Northeast Interstate Dairy
Compact shall terminate concurrent with the Secretary's
implementation of the dairy pricing and Federal milk marketing
order consolidation and reforms under section 143.
(4) Additional states.--Delaware, New Jersey, New York,
Pennsylvania, Maryland, and Virginia are the only additional
States that may join the Northeast Interstate Dairy Compact,
individually or otherwise, if upon entry the State is contiguous
to a participating State and if Congress consents to the entry
of the State into the Compact after the date of enactment of
this title.
(5) Compensation of commodity credit corporation.--Before
the end of each fiscal year that a Compact price regulation is
in effect, the Northeast Interstate Dairy Compact Commission
shall compensate the Commodity Credit Corporation for the cost
of any purchases of milk and milk products by the Corporation
that result from the projected rate of
[[Page 110 STAT. 920]]
increase in milk production for the fiscal year within the
Compact region in excess of the projected national average rate
of the increase in milk production, as determined by the
Secretary.
(6) Milk marketing order administrator.--At the request of
the Northeast Interstate Dairy Compact Commission, the
Administrator of the applicable Federal milk marketing order
issued under section 8(c)5 of the Agricultural Adjustment Act (7
U.S.C. 608c), reenacted with amendments by the Agricultural
Marketing Agreement Act of 1937, shall provide technical
assistance to the Compact Commission and be compensated for that
assistance.
(7) Further conditions.--The Northeast Interstate Dairy
Compact Commission shall not prohibit or in any way limit the
marketing in the Compact region of any milk or milk product
produced in any other production area in the United States. The
Compact Commission shall respect and abide by the ongoing
procedures between Federal milk marketing orders with respect to
the sharing of proceeds from sales within the Compact region of
bulk milk, packaged milk, or producer milk originating from
outside of the Compact region. The Compact Commission shall not
use compensatory payments under section 10(6) of the Compact as
a barrier to the entry of milk into the Compact region or for
any other purpose. Establishment of a Compact over-order price,
in itself, shall not be considered a compensatory payment or a
limitation or prohibition on the marketing of milk.
SEC. 148. DAIRY EXPORT INCENTIVE PROGRAM.
(a) Duration.--Section 153(a) of the Food Security Act of 1985 (15
U.S.C. 713a-14(a)) is amended by striking ``2001'' and inserting
``2002''.
(b) Sole Discretion.--Section 153(b) of the Food Security Act of
1985 (15 U.S.C. 713a-14(b)) is amended by inserting ``sole'' before
``discretion''.
(c) Elements of Program.--Section 153(c) of the Food Security Act of
1985 (15 U.S.C. 713a-14(c)) is amended--
(1) by striking ``and'' at the end of paragraph (1);
(2) by striking the period at the end of paragraph (2) and
inserting a semicolon; and
(3) by adding at the end the following:
``(3) the maximum volume of dairy product exports allowable
consistent with the obligations of the United States as a member
of the World Trade Organization is exported under the program
each year (minus the volume sold under section 1163 of the Food
Security Act of 1985 (Public Law 99-198; 7 U.S.C. 1731 note)
during that year), except to the extent that the export of such
a volume under the program would, in the judgment of the
Secretary, exceed the limitations on the value set forth in
subsection (f); and
``(4) payments may be made under the program for exports to
any destination in the world for the purpose of market
development, except a destination in a country with respect to
which shipments from the United States are otherwise restricted
by law.''.
(d) Market Development.--Section 153(e)(1) of the Food Security Act
of 1985 (15 U.S.C. 713a-14(e)(1)) is amended--
[[Page 110 STAT. 921]]
(1) by striking ``and'' and inserting ``the''; and
(2) by inserting before the period the following: ``, and
any additional amount that may be required to assist in the
development of world markets for United States dairy products''.
(e) Maximum Allowable Amounts.--Section 153 of the Food Security Act
of 1985 (15 U.S.C. 713a-14) is amended by adding at the end the
following:
``(f) Required Funding.--
``(1) In general.--Except as provided in paragraph (2), the
Commodity Credit Corporation shall in each year use money and
commodities for the program under this section in the maximum
amount consistent with the obligations of the United States as a
member of the World Trade Organization, minus the amount
expended under section 1163 of the Food Security Act of 1985
(Public Law 99-198; 7 U.S.C. 1731 note) during that year.
``(2) Volume limitations.--The Commodity Credit Corporation
may not exceed the limitations specified in subsection (c)(3) on
the volume of allowable dairy product exports.''.
SEC. 149. <<NOTE: 7 USC 7257.>> AUTHORITY TO ASSIST IN ESTABLISHMENT AND
MAINTENANCE OF ONE OR MORE EXPORT TRADING COMPANIES.
The Secretary of Agriculture shall, consistent with the obligations
of the United States as a member of the World Trade Organization,
provide such advice and assistance to the United States dairy industry
as may be necessary to enable that industry to establish and maintain
one or more export trading companies under the Export Trading Company
Act of 1982 (15 U.S.C. 4001 et seq.) for the purpose of facilitating the
international market development for and exportation of dairy products
produced in the United States.
SEC. 150. <<NOTE: 7 USC 7258.>> STANDBY AUTHORITY TO INDICATE ENTITY
BEST SUITED TO PROVIDE INTERNATIONAL MARKET DEVELOPMENT AND
EXPORT SERVICES.
(a) Indication of Entity Best Suited To Assist International Market
Development for and Export of United States Dairy Products.--The
Secretary of Agriculture shall indicate which entity or entities
autonomous of the Government of the United States, which seeks such a
designation, is best suited to facilitate the international market
development for and exportation of United States dairy products, if the
Secretary determines that--
(1) the United States dairy industry has not established an
export trading company under the Export Trading Company Act of
1982 (15 U.S.C. 4001 et seq.) for the purpose of facilitating
the international market development for an exportation of dairy
products produced in the United States on or before June 30,
1997; or
(2) the quantity of exports of United States dairy products
during the 12-month period preceding July 1, 1998 does not
exceed the quantity of exports of United States dairy products
during the 12-month period preceding July 1, 1997 by 1.5 billion
pounds (milk equivalent, total solids basis).
(b) Funding of Export Activities.--The Secretary shall assist the
entity or entities identified under subsection (a) in identifying
[[Page 110 STAT. 922]]
sources of funding for the activities specified in subsection (a) from
within the dairy industry and elsewhere.
(c) Application of Section.--This section shall apply only during
the period beginning on July 1, 1997 and ending on September 30, 2000.
SEC. 151. <<NOTE: 7 USC 7259.>> STUDY AND REPORT REGARDING POTENTIAL
IMPACT OF URUGUAY ROUND ON PRICES, INCOME, AND GOVERNMENT
PURCHASES.
(a) Study.--The Secretary of Agriculture shall conduct a study, on a
variety by variety of cheese basis, to determine the potential impact on
milk prices in the United States, dairy producer income, and Federal
dairy program costs, of the allocation of additional cheese granted
access to the United States as a result of the obligations of the United
States as a member of the World Trade Organization.
(b) Report.--Not later than June 30, 1997, the Secretary shall
report to the Committee on Agriculture, Nutrition, and Forestry of the
Senate and the Committee on Agriculture of the House of Representatives
the results of the study conducted under this section.
(c) Rule of Construction.--Any limitation imposed by Act of Congress
on the conduct or completion of studies or reports to Congress shall not
apply to the study and report required under this section, unless the
limitation specifically refers to this section.
SEC. 152. PROMOTION OF UNITED STATES DAIRY PRODUCTS IN INTERNATIONAL
MARKETS THROUGH DAIRY PROMOTION PROGRAM.
Section 113(e) of the Dairy Production Stabilization Act of 1983 (7
U.S.C. 4504(e)) is amended by adding at the end the following new
sentence: ``For each of fiscal years 1997 through 2001, the Board's
budget may provide for the expenditure of revenues available to the
Board to develop international markets for, and to promote within such
markets, the consumption of dairy products produced in the United States
from milk produced in the United States.''.
CHAPTER 2--PEANUTS AND SUGAR
SEC. 155. <<NOTE: 7 USC 7271.>> PEANUT PROGRAM.
(a) Quota Peanuts.--
(1) Availability of loans.--The Secretary shall make
nonrecourse loans available to producers of quota peanuts.
(2) Loan rate.--The national average quota loan rate for
quota peanuts shall be $610 per ton.
(3) Inspection, handling, or storage.--The loan amount may
not be reduced by the Secretary by any deductions for
inspection, handling, or storage.
(4) Location and other factors.--The Secretary may make
adjustments in the loan rate for quota peanuts for location of
peanuts and such other factors as are authorized by section 162.
(5) Offers from handlers.--If a producer markets a quota
peanut crop, meeting quality requirements for domestic edible
use, through the marketing association loan for two consecutive
marketing years and the Secretary determines that a handler
provided the producer with a written offer, upon delivery, for
[[Page 110 STAT. 923]]
the purchase of the quota peanut crops at a price equal to or in
excess of the quota support price, the producer shall be
ineligible for quota price support for the next marketing year.
The Secretary shall establish the method by which a producer may
appeal a determination under this paragraph regarding
ineligibility for quota price support.
(b) Additional Peanuts.--
(1) In general.--Subject to paragraph (2), the Secretary
shall make nonrecourse loans available to producers of
additional peanuts at such rates as the Secretary finds
appropriate, taking into consideration the demand for peanut oil
and peanut meal, expected prices of other vegetable oils and
protein meals, and the demand for peanuts in foreign markets.
(2) Limitation.--The Secretary shall establish the support
rate on additional peanuts at a level estimated by the Secretary
to ensure that there are no losses to the Commodity Credit
Corporation on the sale or disposal of the peanuts.
(3) Announcement.--The Secretary shall announce the loan
rate for additional peanuts of each crop not later than February
15 preceding the marketing year for the crop for which the loan
rate is being determined.
(c) Area Marketing Associations.--
(1) Warehouse storage loans.--
(A) In general.--In carrying out subsections (a) and
(b), the Secretary shall make warehouse storage loans
available in each of the producing areas (described in
section 1446.95 of title 7 of the Code of Federal
Regulations (January 1, 1989)) to a designated area
marketing association of peanut producers that is
selected and approved by the Secretary and that is
operated primarily for the purpose of conducting the
loan activities. The Secretary may not make warehouse
storage loans available to any cooperative that is
engaged in operations or activities concerning peanuts
other than those operations and activities specified in
this section and section 358e of the Agricultural
Adjustment Act of 1938 (7 U.S.C. 1359a).
(B) Administrative and supervisory activities.--An
area marketing association shall be used in
administrative and supervisory activities relating to
loans and marketing activities under this section and
section 358e of the Agricultural Adjustment Act of 1938
(7 U.S.C. 1359a).
(C) Association costs.--Loans made to the
association under this paragraph shall include such
costs as the area marketing association reasonably may
incur in carrying out the responsibilities, operations,
and activities of the association under this section and
section 358e of the Agricultural Adjustment Act of 1938
(7 U.S.C. 1359a).
(2) Pools for quota and additional peanuts.--
(A) <<NOTE: Records. New Mexico.>> In general.--The
Secretary shall require that each area marketing
association establish pools and maintain complete and
accurate records by area and segregation for quota
peanuts handled under loan and for additional peanuts
placed under loan, except that separate pools shall be
established for Valencia peanuts produced in New Mexico.
(B) Eligibility to participate in new mexico
pools.--
[[Page 110 STAT. 924]]
(i) In general.--Except as provided in clause
(ii), in the case of the 1996 and subsequent
crops, Valencia peanuts not physically produced in
the State of New Mexico shall not be eligible to
participate in the pools of the State.
(ii) Exception.--A producer of Valencia
peanuts may enter Valencia peanuts that are
produced in Texas into the pools of New Mexico in
a quantity not greater than the average annual
quantity of the peanuts that the producer entered
into the New Mexico pools for the 1990 through
1995 crops.
(C) Types of peanuts.--Bright hull and dark hull
Valencia peanuts shall be considered as separate types
for the purpose of establishing the pools.
(D) Net gains.--Net gains on peanuts in each pool,
unless otherwise approved by the Secretary, shall be
distributed only to producers who placed peanuts in the
pool and shall be distributed in proportion to the value
of the peanuts placed in the pool by each producer. Net
gains for peanuts in each pool shall consist of the
following:
(i) Quota peanuts.--For quota peanuts, the net
gains over and above the loan indebtedness and
other costs or losses incurred on peanuts placed
in the pool.
(ii) Additional peanuts.--For additional
peanuts, the net gains over and above the loan
indebtedness and other costs or losses incurred on
peanuts placed in the pool for additional peanuts.
(d) Losses.--Losses in quota area pools shall be covered using the
following sources in the following order of priority:
(1) Transfers from additional loan pools.--The proceeds due
any producer from any pool shall be reduced by the amount of any
loss that is incurred with respect to peanuts transferred from
an additional loan pool to a quota loan pool by the producer
under section 358-1(b)(8) of the Agricultural Adjustment Act of
1938 (7 U.S.C. 1358-1(b)(8)).
(2) Producers in same pool.--Further losses in an area quota
pool shall be offset by reducing the gain of any producer in the
pool by the amount of pool gains attributed to the same producer
from the sale of additional peanuts for domestic and edible
export use.
(3) Offset within area.--Further losses in an area quota
pool shall be offset by any gains or profits from additional
peanuts (other than separate type pools established under
subsection (c)(2)(A) for Valencia peanuts produced in New
Mexico) owned or controlled by the Commodity Credit Corporation
in that area and sold for domestic edible use, in accordance
with regulations issued by the Secretary. This paragraph shall
not apply to profits or gains from a farm with 1 acre or less of
peanut production.
(4) First use of marketing assessments.--The Secretary shall
use funds collected under subsection (g) (except funds
attributable to handlers) to offset further losses in area quota
pools. The Secretary shall transfer to the Treasury those funds
collected under subsection (g) and available for use under this
paragraph that the Secretary determines are not required to
cover losses in area quota pools.
[[Page 110 STAT. 925]]
(5) <<NOTE: Regulations.>> Cross compliance.--Further losses
in area quota pools, other than losses incurred as a result of
transfers from additional loan pools to quota loan pools under
section 358-1(b)(8) of the Agricultural Adjustment Act of 1938
(7 U.S.C. 1358-1(b)(8)), shall be offset by any gains or profits
from quota pools in other production areas (other than separate
type pools established under subsection (c)(2)(A) for Valencia
peanuts produced in New Mexico) in such manner as the Secretary
shall by regulation prescribe.
(6) Offset generally.--If losses in an area quota pool have
not been entirely offset under the preceding paragraphs, further
losses shall be offset by any gains or profits from additional
peanuts (other than separate type pools established under
subsection (c)(2)(A) for Valencia peanuts produced in New
Mexico) owned or controlled by the Commodity Credit Corporation
and sold for domestic edible use, in accordance with regulations
issued by the Secretary. This paragraph shall not apply to
profits or gains from a farm with 1 acre or less of peanut
production.
(7) Second use of marketing assessments.--The Secretary
shall use funds collected under subsection (g) and attributable
to handlers to offset further losses in area quota pools. The
Secretary shall transfer to the Treasury those funds collected
under subsection (g) and available for use under this paragraph
that the Secretary determines are not required to cover losses
in area quota pools.
(8) Increased assessments.--If use of the authorities
provided in the preceding paragraphs is not sufficient to cover
losses in an area quota pool, the Secretary shall increase the
marketing assessment for producers established under subsection
(g) by such an amount as the Secretary considers necessary to
cover the losses. The increased assessment shall apply only to
quota peanuts in the production area covered by the pool.
Amounts collected under subsection (g) as a result of the
increased assessment shall be retained by the Secretary to cover
losses in that pool.
(e) Disapproval of Quotas.--Notwithstanding any other provision of
law, no loan for quota peanuts may be made available by the Secretary
for any crop of peanuts with respect to which poundage quotas have been
disapproved by producers, as provided for in section 358-1(d) of the
Agricultural Adjustment Act of 1938 (7 U.S.C. 1358-1(d)).
(f) Quality Improvement.--
(1) In general.--With respect to peanuts under loan, the
Secretary shall--
(A) promote the crushing of peanuts at a greater
risk of deterioration before peanuts of a lesser risk of
deterioration;
(B) ensure that all Commodity Credit Corporation
inventories of peanuts sold for domestic edible use must
be shown to have been officially inspected by licensed
Department inspectors both as farmer stock and shelled
or cleaned in-shell peanuts;
(C) continue to endeavor to operate the peanut
program so as to improve the quality of domestic peanuts
and ensure the coordination of activities under the
Peanut Administrative Committee established under
Marketing Agreement
[[Page 110 STAT. 926]]
No. 146, regulating the quality of domestically produced
peanuts (under the Agricultural Adjustment Act (7 U.S.C.
601 et seq.), reenacted with amendments by the
Agricultural Marketing Agreement Act of 1937); and
(D) ensure that any changes made in the peanut
program as a result of this subsection requiring
additional production or handling at the farm level
shall be reflected as an upward adjustment in the
Department loan schedule.
(2) Exports and other peanuts.--The Secretary shall require
that all peanuts in the domestic and export markets fully comply
with all quality standards under Marketing Agreement No. 146.
(g) Marketing Assessment.--
(1) In general.--The Secretary shall provide for a
nonrefundable marketing assessment. The assessment shall be made
on a per pound basis in an amount equal to 1.1 percent for each
of the 1994 and 1995 crops, 1.15 percent for the 1996 crop, and
1.2 percent for each of the 1997 through 2002 crops, of the
national average quota or additional peanut loan rate for the
applicable crop.
(2) First purchasers.--
(A) In general.--Except as provided under paragraphs
(3) and (4), the first purchaser of peanuts shall--
(i) collect from the producer a marketing
assessment equal to the quantity of peanuts
acquired multiplied by--
(I) in the case of each of the 1994
and 1995 crops, .55 percent of the
applicable national average loan rate;
(II) in the case of the 1996 crop,
.6 percent of the applicable national
average loan rate; and
(III) in the case of each of the
1997 through 2002 crops, .65 percent of
the applicable national average loan
rate;
(ii) pay, in addition to the amount collected
under clause (i), a marketing assessment in an
amount equal to the quantity of peanuts acquired
multiplied by .55 percent of the applicable
national average loan rate; and
(iii) remit the amounts required under clauses
(i) and (ii) to the Commodity Credit Corporation
in a manner specified by the Secretary.
(B) Definition of first purchaser.--In this
subsection, the term ``first purchaser'' means a person
acquiring peanuts from a producer except that in the
case of peanuts forfeited by a producer to the Commodity
Credit Corporation, the term means the person acquiring
the peanuts from the Commodity Credit Corporation.
(3) Other private marketings.--In the case of a private
marketing by a producer directly to a consumer through a retail
or wholesale outlet or in the case of a marketing by the
producer outside of the continental United States, the producer
shall be responsible for the full amount of the assessment and
shall remit the assessment by such time as is specified by the
Secretary.
(4) Loan peanuts.--In the case of peanuts that are pledged
as collateral for a loan made under this section, the producer
[[Page 110 STAT. 927]]
portion of the assessment shall be deducted from the proceeds of
the loan. The remainder of the assessment shall be paid by the
first purchaser of the peanuts. For purposes of computing net
gains on peanuts under this section, the reduction in loan
proceeds shall be treated as having been paid to the producer.
(5) Penalties.--If any person fails to collect or remit the
reduction required by this subsection or fails to comply with
the requirements for recordkeeping or otherwise as are required
by the Secretary to carry out this subsection, the person shall
be liable to the Secretary for a civil penalty up to an amount
determined by multiplying--
(A) the quantity of peanuts involved in the
violation; by
(B) the national average quota peanut rate for the
applicable crop year.
(6) Enforcement.--The Secretary may enforce this subsection
in the courts of the United States.
(h) <<NOTE: Effective date.>> Crops.--Subsections (a) through (g)
shall be effective only for the 1996 through 2002 crops of peanuts.
(i) Poundage Quotas.--
(1) In general.--Part VI of subtitle B of title III of the
Agricultural Adjustment Act of 1938 is amended--
(A) in section 358-1 (7 U.S.C. 1358-1)--
(i) in the section heading, by striking ``1991
through 1997 crops of'';
(ii) in subsections (a)(1), (b)(1)(B),
(b)(2)(A), (b)(2)(C), and (b)(3)(A), by striking
``of the 1991 through 1997 marketing years'' each
place it appears and inserting ``marketing year'';
(iii) in subsection (a)(3), by striking
``1990'' and inserting ``1990, for the 1991
through 1995 marketing years, and 1995, for the
1996 through 2002 marketing years'';
(iv) in subsection (b)(1)(A)--
(I) by striking ``each of the 1991
through 1997 marketing years'' and
inserting ``each marketing year''; and
(II) in clause (i), by inserting
before the semicolon the following: ``,
in the case of the 1991 through 1995
marketing years, and the 1995 marketing
year, in the case of the 1996 through
2002 marketing years'';
(v) in subsection (b)(1), by adding at the end
the following:
``(D) <<NOTE: Effective date.>> Certain farms
ineligible for quota.--Effective beginning with the 1998
crop, the Secretary shall not establish a farm poundage
quota under subparagraph (A) for a farm owned or
controlled by--
``(i) a municipality, airport authority,
school, college, refuge, or other public entity
(other than a university used for research
purposes); or
``(ii) a person who is not a producer and
resides in another State.'';
(vi) in subsection (b)(2), by adding at the
end the following:
``(E) Transfer of quota from ineligible farms.--Any
farm poundage quota held at the end of the 1996
[[Page 110 STAT. 928]]
marketing year by a farm described in paragraph (1)(D)
shall be allocated to other farms in the same State on
such basis as the Secretary may by regulation
prescribe.''; and
(vii) in subsection (f), by striking ``1997''
and inserting ``2002'';
(B) in section 358b (7 U.S.C. 1358b)--
(i) in the section heading, by striking ``1991
through 1995 crops of''; and
(ii) in subsection (c), by striking ``1995''
and inserting ``2002'';
(C) in section 358c(d) (7 U.S.C. 1358c(d)), by
striking ``1995'' and inserting ``2002''; and
(D) in section 358e (7 U.S.C. 1359a)--
(i) in the section heading, by striking ``for
1991 through 1997 crops of peanuts''; and
(ii) in subsection (i), by striking ``1997''
and inserting ``2002''.
(2) Elimination of quota floor.--Section 358-1(a)(1) of the
Agricultural Adjustment Act of 1938 (7 U.S.C. 1358-1(a)(1)) is
amended by striking the second sentence.
(3) Temporary quota allocation.--Section 358-1 of the
Agricultural Adjustment Act of 1938 (7 U.S.C. 1358-1) is
amended--
(A) in subsection (a)(1), by striking ``domestic
edible, seed,'' and inserting ``domestic edible use
(except seed)''; and
(B) in subsection (b)(2)--
(i) in subparagraph (A), by striking
``subparagraph (B) and subject to''; and
(ii) by striking subparagraph (B) and
inserting the following:
``(B) Temporary quota allocation.--
``(i) Allocation related to seed peanuts.--
Temporary allocation of quota pounds for the
marketing year only in which the crop is planted
shall be made to producers for each of the 1996
through 2002 marketing years as provided in this
subparagraph.
``(ii) Quantity.--The temporary quota
allocation shall be equal to the pounds of seed
peanuts planted on the farm, as may be adjusted
and determined under regulations prescribed by the
Secretary.
``(iii) Additional quota.--The temporary
allocation of quota pounds under this paragraph
shall be in addition to the farm poundage quota
otherwise established under this subsection and
shall be credited, for the applicable marketing
year only, in total, to the producer of the
peanuts on the farm in a manner prescribed by the
Secretary.
``(iv) Effect of other requirements.--Nothing
in this section alters or changes the requirements
regarding the use of quota and additional peanuts
established by section 358e(b).''.
(4) Undermarketings.--Part VI of subtitle B of title III of
the Agricultural Adjustment Act of 1938 is amended--
(A) in section 358-1(b) (7 U.S.C. 1358-1(b))--
[[Page 110 STAT. 929]]
(i) in paragraph (1)(B), by striking ``includ-
ing--'' and clauses (i) and (ii) and inserting
``including any increases resulting from the
allocation of quotas voluntarily released for 1
year under paragraph (7).'';
(ii) in paragraph (3)(B), by striking
``include--'' and clauses (i) and (ii) and
inserting ``include any increase resulting from
the allocation of quotas voluntarily released for
1 year under paragraph (7).''; and
(iii) by striking paragraphs (8) and (9); and
(B) in section 358b(a) (7 U.S.C. 1358b(a))--
(i) in paragraph (2), by striking ``(including
any applicable under marketings)''; and
(ii) in paragraph (3), by striking
``(including any applicable undermarketings)''.
(5) Disaster transfers.--Section 358-1(b) of the
Agricultural Adjustment Act of 1938 (7 U.S.C. 1358-1(b)), as
amended by paragraph (4)(A)(iii), is amended by adding at the
end the following:
``(8) Disaster transfers.--
``(A) <<NOTE: Regulations.>> In general.--Except as
provided in subparagraph (B), additional peanuts
produced on a farm from which the quota poundage was not
harvested and marketed because of drought, flood, or any
other natural disaster, or any other condition beyond
the control of the producer, may be transferred to the
quota loan pool for pricing purposes on such basis as
the Secretary shall by regulation provide.
``(B) Limitation.--The poundage of peanuts
transferred under subparagraph (A) shall not exceed the
difference between--
``(i) the total quantity of peanuts meeting
quality requirements for domestic edible use, as
determined by the Secretary, marketed from the
farm; and
``(ii) the total farm poundage quota,
excluding quota pounds transferred to the farm in
the fall.
``(C) Support rate.--Peanuts transferred under this
paragraph shall be supported at 70 percent of the quota
support rate for the marketing years in which the
transfers occur. The transfers for a farm shall not
exceed 25 percent of the total farm quota pounds,
excluding pounds transferred in the fall.''.
(6) Sale or lease.--Section 358b(a) of the Agricultural
Adjustment Act of 1938 (7 U.S.C. 1358b(a)) is amended--
(A) by striking paragraph (1) and inserting the
following:
``(1) Sale and lease authority.--
``(A) Sale or lease within same state.--Subject to
subparagraph (B) and such terms and conditions as the
Secretary may prescribe, the owner, or operator with the
permission of the owner, of a farm in a State for which
a farm poundage quota has been established may sell or
lease all or any part of the poundage quota to any other
owner or operator of a farm within the same State for
transfer to the farm. However, any such lease of
poundage quota may be entered into in the fall or after
the normal planting season--
[[Page 110 STAT. 930]]
``(i) if not less than 90 percent of the basic
quota (the farm quota and temporary quota
transfers), plus any poundage quota transferred to
the farm under this subsection, has been planted
or considered planted on the farm from which the
quota is to be leased; and
``(ii) under such terms and conditions as the
Secretary may by regulation prescribe.
``In the case of a fall transfer or a transfer after the
normal planting season by a cash lessee, the landowner
shall not be required to sign the transfer
authorization. A fall transfer or a transfer after the
normal planting season may be made not later than 72
hours after the peanuts that are the subject of the
transfer are inspected and graded.
``(B) Percentage limitations on spring transfers.--
Spring transfers under subparagraph (A) by sale or lease
of a quota for farms in a county to any owner or
operator of a farm outside the county within the same
State shall not exceed the applicable percentage
specified in this subparagraph of the quotas of all
farms in the originating county (as of January 1, 1996)
for the crop year in which the transfer is made, plus
the total amount of quotas eligible for transfer from
the originating county in the preceding crop year that
were not transferred in that year or that were
transferred through an expired lease. However, not more
than an aggregate of 40 percent of the total poundage
quota within a county (as of January 1, 1996) may be
transferred outside of the county. Cumulative unexpired
transfers outside of a county may not exceed for a crop
year the following:
``(i) For the 1996 crop, 15 percent.
``(ii) For the 1997 crop, 25 percent.
``(iii) For the 1998 crop, 30 percent.
``(iv) For the 1999 crop, 35 percent.
``(v) For the 2000 and subsequent crops, not
more than an aggregate of 40 percent of the total
poundage quota within the county as of January 1,
1996.
``(C) Clarification regarding fall transfers.--The
limitation in subparagraph (B) does not apply to 1-year
fall transfers, which in all cases may be made to any
farm in the same State.
``(D) Effect of transfer.--Any farm poundage quota
transferred under this paragraph shall not result in any
reduction in the farm poundage quota for the
transferring farm if the transferred quota is produced
or considered produced on the receiving farm.''; and
(B) by adding at the end the following:
``(4) Transfers in counties with small quotas.--
Notwithstanding paragraphs (1) and (2), in the case of any
county in a State for which the poundage quota allocated to the
county was less than 100,000 pounds for the preceding year's
crop, all or any part of a farm poundage quota may be
transferred by sale or lease or otherwise from a farm in the
county to a farm in another county in the same State.''.
[[Page 110 STAT. 931]]
SEC. 156. <<NOTE: 7 USC 7272.>> SUGAR PROGRAM.
(a) Sugarcane.--The Secretary shall make loans available to
processors of domestically grown sugarcane at a rate equal to 18 cents
per pound for raw cane sugar.
(b) Sugar Beets.--The Secretary shall make loans available to
processors of domestically grown sugar beets at a rate equal to 22.9
cents per pound for refined beet sugar.
(c) Reduction in Loan Rates.--
(1) Reduction required.--The Secretary shall reduce the loan
rate specified in subsection (a) for domestically grown
sugarcane and subsection (b) for domestically grown sugar beets
if the Secretary determines that negotiated reductions in export
subsidies and domestic subsidies provided for sugar of other
major sugar growing, producing, and exporting countries in the
aggregate exceed the commitments made as part of the Agreement
on Agriculture.
(2) Extent of reduction.--The Secretary shall not reduce the
loan rate under subsection (a) or (b) below a rate that provides
an equal measure of support to that provided by other major
sugar growing, producing, and exporting countries, based on an
examination of both domestic and export subsidies subject to
reduction in the Agreement on Agriculture.
(3) Announcement of reduction.--The Secretary shall announce
any loan rate reduction to be made under this subsection as far
in advance as is practicable.
(4) Definitions.--In this subsection:
(A) Agreement on agriculture.--The term ``Agreement
on Agriculture'' means the Agreement on Agriculture
referred to in section 101(d)(2) of the Uruguay Round
Agreements Act (19 U.S.C. 3511(d)(2)).
(B) Major sugar countries.--The term ``major sugar
growing, producing, and exporting countries'' means--
(i) the countries of the European Union; and
(ii) the 10 foreign countries not covered by
subparagraph (A) that the Secretary determines
produce the greatest quantity of sugar.
(d) Term of Loans.--
(1) In general.--A loan under this section during any fiscal
year shall be made available not earlier than the beginning of
the fiscal year and shall mature at the earlier of--
(A) the end of the 9-month period beginning on the
first day of the first month after the month in which
the loan is made; or
(B) the end of the fiscal year in which the loan is
made.
(2) Supplemental loans.--In the case of a loan made under
this section in the last 3 months of a fiscal year, the
processor may repledge the sugar as collateral for a second loan
in the subsequent fiscal year, except that the second loan
shall--
(A) be made at the loan rate in effect at the time
the second loan is made; and
(B) mature in 9 months less the quantity of time
that the first loan was in effect.
(e) Loan Type; Processor Assurances.--
[[Page 110 STAT. 932]]
(1) Recourse loans.--Subject to paragraph (2), the Secretary
shall carry out this section through the use of recourse loans.
(2) Nonrecourse loans.--During any fiscal year in which the
tariff rate quota for imports of sugar into the United States is
established at, or is increased to, a level in excess of
1,500,000 short tons raw value, the Secretary shall carry out
this section by making available nonrecourse loans. Any recourse
loan previously made available by the Secretary under this
section during the fiscal year shall be changed by the Secretary
into a nonrecourse loan.
(3) Processor assurances.--If the Secretary is required
under paragraph (2) to make nonrecourse loans available during a
fiscal year or to change recourse loans into nonrecourse loans,
the Secretary shall obtain from each processor that receives a
loan under this section such assurances as the Secretary
considers adequate to ensure that the processor will provide
payments to producers that are proportional to the value of the
loan received by the processor for sugar beets and sugarcane
delivered by producers served by the processor. The Secretary
may establish appropriate minimum payments for purposes of this
paragraph.
(f) Marketing Assessment.--
(1) <<NOTE: Effective date.>> Sugarcane.--Effective for
marketings of raw cane sugar during the 1996 through 2003 fiscal
years, the first processor of sugarcane shall remit to the
Commodity Credit Corporation a nonrefundable marketing
assessment in an amount equal to--
(A) in the case of marketings during fiscal year
1996, 1.1 percent of the loan rate established under
subsection (a) per pound of raw cane sugar, processed by
the processor from domestically produced sugarcane or
sugarcane molasses, that has been marketed (including
the transfer or delivery of the sugar to a refinery for
further processing or marketing); and
(B) in the case of marketings during each of fiscal
years 1997 through 2003, 1.375 percent of the loan rate
established under subsection (a) per pound of raw cane
sugar, processed by the processor from domestically
produced sugarcane or sugarcane molasses, that has been
marketed (including the transfer or delivery of the
sugar to a refinery for further processing or
marketing).
(2) <<NOTE: Effective date.>> Sugar beets.--Effective for
marketings of beet sugar during the 1996 through 2003 fiscal
years, the first processor of sugar beets shall remit to the
Commodity Credit Corporation a nonrefundable marketing
assessment in an amount equal to--
(A) in the case of marketings during fiscal year
1996, 1.1794 percent of the loan rate established under
subsection (a) per pound of beet sugar, processed by the
processor from domestically produced sugar beets or
sugar beet molasses, that has been marketed; and
(B) in the case of marketings during each of fiscal
years 1997 through 2003, 1.47425 percent of the loan
rate established under subsection (a) per pound of beet
sugar, processed by the processor from domestically
produced
[[Page 110 STAT. 933]]
sugar beets or sugar beet molasses, that has been
marketed.
(3) Collection.--
(A) Timing.--A marketing assessment required under
this subsection shall be collected on a monthly basis
and shall be remitted to the Commodity Credit
Corporation not later than 30 days after the end of each
month. Any cane sugar or beet sugar processed during a
fiscal year that has not been marketed by September 30
of the year shall be subject to assessment on that date.
The sugar shall not be subject to a second assessment at
the time that it is marketed.
(B) Manner.--Subject to subparagraph (A), marketing
assessments shall be collected under this subsection in
the manner prescribed by the Secretary and shall be
nonrefundable.
(4) Penalties.--If any person fails to remit the assessment
required by this subsection or fails to comply with such
requirements for recordkeeping or otherwise as are required by
the Secretary to carry out this subsection, the person shall be
liable to the Secretary for a civil penalty up to an amount
determined by multiplying--
(A) the quantity of cane sugar or beet sugar
involved in the violation; by
(B) the loan rate for the applicable crop of
sugarcane or sugar beets.
(5) Enforcement.--The Secretary may enforce this subsection
in a court of the United States.
(g) Forfeiture Penalty.--
(1) In general.--A penalty shall be assessed on the
forfeiture of any sugar pledged as collateral for a nonrecourse
loan under this section.
(2) Cane sugar.--The penalty for cane sugar shall be 1 cent
per pound.
(3) Beet sugar.--The penalty for beet sugar shall bear the
same relation to the penalty for cane sugar as the marketing
assessment for sugar beets bears to the marketing assessment for
sugarcane.
(4) Effect of forfeiture.--Any payments owed producers by a
processor that forfeits any sugar pledged as collateral for a
nonrecourse loan shall be reduced in proportion to the loan
forfeiture penalty incurred by the processor.
(h) Information Reporting.--
(1) Duty of processors and refiners to report.--A sugarcane
processor, cane sugar refiner, and sugar beet processor shall
furnish the Secretary, on a monthly basis, such information as
the Secretary may require to administer sugar programs,
including the quantity of purchases of sugarcane, sugar beets,
and sugar, and production, importation, distribution, and stock
levels of sugar.
(2) Penalty.--Any person willfully failing or refusing to
furnish the information, or furnishing willfully any false
information, shall be subject to a civil penalty of not more
than $10,000 for each such violation.
(3) Monthly reports.--Taking into consideration the
information received under paragraph (1), the Secretary shall
[[Page 110 STAT. 934]]
publish on a monthly basis composite data on production,
imports, distribution, and stock levels of sugar.
(i) Crops.--This section (other than subsection (f)) shall be
effective only for the 1996 through 2002 crops of sugar beets and
sugarcane.
Subtitle E--Administration
SEC. 161. <<NOTE: 7 USC 7281.>> ADMINISTRATION.
(a) Use of Commodity Credit Corporation.--The Secretary shall carry
out this title through the Commodity Credit Corporation.
(b) Limitation on Expenditure of Commodity Credit Corporation
Funds.--
(1) General powers and responsibilities.--Section 4 of the
Commodity Credit Corporation Charter Act (15 U.S.C. 714b) is
amended--
(A) in the first sentence of subsection (g), by
inserting before the period the following: ``, except
that obligations under all such contracts or agreements
(other than reimbursable agreements under section 11)
for equipment or services relating to automated data
processing, information technologies, or related items
(including telecommunications equipment and computer
hardware and software) may not exceed $170,000,000 in
fiscal year 1996 and not more than $275,000,000 in the
6-fiscal year period beginning on October 1, 1996,
unless additional amounts for such contracts and
agreements are provided in advance in appropriation
Acts''; and
(B) in subsection (h), by striking ``shall have
power to acquire personal property necessary to the
conduct of its business but''.
(2) Reimbursable agreements.--Section 11 of the Commodity
Credit Corporation Charter Act (15 U.S.C. 714i) is amended by
adding at the end the following: ``After September 30, 1996, the
total amount of all allotments and fund transfers from the
Corporation under this section (including allotments and
transfers for automated data processing or information resource
management activities) for a fiscal year may not exceed the
total amount of the allotments and transfers made under this
section in fiscal year 1995.''.
(3) Reporting requirements.--Section 13 of the Commodity
Credit Corporation Charter Act (15 U.S.C. 714k) is amended by
adding at the end the following: ``In addition to the annual
report, the Corporation shall submit to Congress on a quarterly
basis an itemized report of all expenditures over $10,000 made
under section 5 or 11 during the period covered by the report,
including expenditures in the form of allotments or fund
transfers to other agencies and departments of the Federal
Government.''.
(c) Determinations by Secretary.--A determination made by the
Secretary under this title shall be final and conclusive.
(d) Regulations.--Not later than 90 days after the date of enactment
of this title, the Secretary and the Commodity Credit Corporation, as
appropriate, shall issue such regulations as are necessary to implement
this title. The issuance of the regulations shall be made without regard
to--
[[Page 110 STAT. 935]]
(1) the notice and comment provisions of section 553 of
title 5, United States Code;
(2) the Statement of Policy of the Secretary of Agriculture
effective July 24, 1971 (36 Fed. Reg. 13804) relating to notices
of proposed rulemaking and public participation in rulemaking;
and
(3) chapter 35 of title 44, United States Code (commonly
know as the ``Paperwork Reduction Act'').
SEC. 162. <<NOTE: 7 USC 7282.>> ADJUSTMENTS OF LOANS.
(a) Adjustment Authority.--The Secretary may make appropriate
adjustments in the loan rates for any commodity for differences in
grade, type, quality, location, and other factors.
(b) Manner of Adjustment.--The adjustments under the authority of
this section shall, to the maximum extent practicable, be made in such
manner that the average loan level for the commodity will, on the basis
of the anticipated incidence of the factors, be equal to the level of
support determined as provided in this title.
(c) Adjustment on County Basis.--The Secretary may establish loan
rates for a crop for producers in individual counties in a manner that
results in the lowest such rate being 95 percent of the national average
loan rate, except that such action shall not result in an increase in
outlays. Adjustments under this subsection shall not result in an
increase in the national average loan rate for any year.
SEC. 163. <<NOTE: 7 USC 7283.>> COMMODITY CREDIT CORPORATION INTEREST
RATE.
Notwithstanding any other provision of law, the monthly Commodity
Credit Corporation interest rate applicable to loans provided for
agricultural commodities by the Corporation shall be 100 basis points
greater than the rate determined under the applicable interest rate
formula in effect on October 1, 1995.
SEC. 164. <<NOTE: 7 USC 7284.>> PERSONAL LIABILITY OF PRODUCERS FOR
DEFICIENCIES.
(a) In General.--Except as provided in subsection (b), no producer
shall be personally liable for any deficiency arising from the sale of
the collateral securing any nonrecourse loan made under this title
unless the loan was obtained through a fraudulent representation by the
producer.
(b) Limitations.--Subsection (a) shall not prevent the Commodity
Credit Corporation or the Secretary from requiring a producer to assume
liability for--
(1) a deficiency in the grade, quality, or quantity of a
commodity stored on a farm or delivered by the producer;
(2) a failure to properly care for and preserve a commodity;
or
(3) a failure or refusal to deliver a commodity in
accordance with a program established under this title.
(c) Acquisition of Collateral.--In the case of a nonrecourse loan
made under this title or the Commodity Credit Corporation Charter Act
(15 U.S.C. 714 et seq.), if the Commodity Credit Corporation acquires
title to the unredeemed collateral, the Corporation shall be under no
obligation to pay for any market value that the collateral may have in
excess of the loan indebtedness.
(d) Sugarcane and Sugar Beets.--A security interest obtained by the
Commodity Credit Corporation as a result of the execution of a security
agreement by the processor of sugarcane or sugar
[[Page 110 STAT. 936]]
beets shall be superior to all statutory and common law liens on raw
cane sugar and refined beet sugar in favor of the producers of sugarcane
and sugar beets and all prior recorded and unrecorded liens on the crops
of sugarcane and sugar beets from which the sugar was derived.
SEC. 165. <<NOTE: 7 USC 7285.>> COMMODITY CREDIT CORPORATION SALES PRICE
RESTRICTIONS.
(a) General Sales Authority.--The Commodity Credit Corporation may
sell any commodity owned or controlled by the Corporation at any price
that the Secretary determines will maximize returns to the Corporation.
(b) Nonapplication of Sales Price Restrictions.--Subsection (a)
shall not apply to--
(1) a sale for a new or byproduct use;
(2) a sale of peanuts or oilseeds for the extraction of oil;
(3) a sale for seed or feed if the sale will not
substantially impair any loan program;
(4) a sale of a commodity that has substantially
deteriorated in quality or as to which there is a danger of loss
or waste through deterioration or spoilage;
(5) a sale for the purpose of establishing a claim arising
out of a contract or against a person who has committed fraud,
misrepresentation, or other wrongful act with respect to the
commodity;
(6) a sale for export, as determined by the Corporation; and
(7) a sale for other than a primary use.
(c) Presidential Disaster Areas.--
(1) In general.--Notwithstanding subsection (a), on such
terms and conditions as the Secretary may consider in the public
interest, the Corporation may make available any commodity or
product owned or controlled by the Corporation for use in
relieving distress--
(A) in any area in the United States (including the
Virgin Islands) declared by the President to be an acute
distress area because of unemployment or other economic
cause, if the President finds that the use will not
displace or interfere with normal marketing of
agricultural commodities; and
(B) in connection with any major disaster determined
by the President to warrant assistance by the Federal
Government under the Robert T. Stafford Disaster Relief
and Emergency Assistance Act (42 U.S.C. 5121 et seq.).
(2) Costs.--Except on a reimbursable basis, the Corporation
shall not bear any costs in connection with making a commodity
available under paragraph (1) beyond the cost of the commodity
to the Corporation incurred in--
(A) the storage of the commodity; and
(B) the handling and transportation costs in making
delivery of the commodity to designated agencies at 1 or
more central locations in each State or other area.
(d) Efficient Operations.--Subsection (a) shall not apply to the
sale of a commodity the disposition of which is desirable in the
interest of the effective and efficient conduct of the operations of the
Corporation because of the small quantity of the commodity
[[Page 110 STAT. 937]]
involved, or because of the age, location, or questionable continued
storability of the commodity.
Subtitle F--Permanent Price Support Authority
SEC. 171. <<NOTE: 7 USC 7301.>> SUSPENSION AND REPEAL OF PERMANENT PRICE
SUPPORT AUTHORITY.
(a) Agricultural Adjustment Act of 1938.--
(1) Suspensions.--The following provisions of the
Agricultural Adjustment Act of 1938 shall not be applicable to
the 1996 through 2002 crops of loan commodities, peanuts, and
sugar and shall not be applicable to milk during the period
beginning on the date of enactment of this title and ending on
December 31, 2002:
(A) Parts II through V of subtitle B of title III (7
U.S.C. 1326-1351).
(B) Subsections (a) through (j) of section 358 (7
U.S.C. 1358).
(C) Subsections (a) through (h) of section 358a (7
U.S.C. 1358a).
(D) Subsections (a), (b), (d), and (e) of section
358d (7 U.S.C. 1359).
(E) Part VII of subtitle B of title III (7 U.S.C.
1359aa-1359jj).
(F) In the case of peanuts, part I of subtitle C of
title III (7 U.S.C. 1361-1368).
(G) In the case of upland cotton, section 377 (7
U.S.C. 1377).
(H) Subtitle D of title III (7 U.S.C. 1379a-1379j).
(I) Title IV (7 U.S.C. 1401-1407).
(2) <<NOTE: Effective date.>> Reports and records.--
Effective only for the 1996 through 2002 crops of peanuts, the
first sentence of section 373(a) of the Agricultural Adjustment
Act of 1938 (7 U.S.C. 1373(a)) is amended by inserting before
``all brokers and dealers in peanuts'' the following: ``all
producers engaged in the production of peanuts,''.
(b) Agricultural Act of 1949.--
(1) Suspensions.--The following provisions of the
Agricultural Act of 1949 shall not be applicable to the 1996
through 2002 crops of loan commodities, peanuts, and sugar and
shall not be applicable to milk during the period beginning on
the date of enactment of this title and ending on December 31,
2002:
(A) Section 101 (7 U.S.C. 1441).
(B) Section 103(a) (7 U.S.C. 1444(a)).
(C) Section 105 (7 U.S.C. 1444b).
(D) Section 107 (7 U.S.C. 1445a).
(E) Section 110 (7 U.S.C. 1445e).
(F) Section 112 (7 U.S.C. 1445g).
(G) Section 115 (7 U.S.C. 1445k).
(H) Section 201 (7 U.S.C. 1446).
(I) Title III (7 U.S.C. 1447-1449).
(J) Title IV (7 U.S.C. 1421-1433d), other than
sections 404, 412, and 416 (7 U.S.C. 1424, 1429, and
1431).
(K) Title V (7 U.S.C. 1461-1469).
[[Page 110 STAT. 938]]
(L) Title VI (7 U.S.C. 1471-1471j).
(2) Repeals.--The following provisions of the Agricultural
Act of 1949 are repealed:
(A) Section 101B (7 U.S.C. 1441-2).
(B) Section 103B (7 U.S.C. 1444-2).
(C) Section 105B (7 U.S.C. 1444f).
(D) Section <<NOTE: 7 USC 1445b-3a.>> 107B (7 U.S.C.
1445-3a).
(E) Section 108B (7 U.S.C. 1445c-3).
(F) Section 113 (7 U.S.C. 1445h).
(G) Subsections (b) and (c) of section 114 (7 U.S.C.
1445j).
(H) Sections 205, 206, and 207 (7 U.S.C. 1446f,
1446g, and 1446h).
(I) Sections 406 and 427 (7 U.S.C. 1426 and 1433f).
(3) Potential price support for rice.--Section 101 of the
Agricultural Act of 1949 (7 U.S.C. 1441), as suspended by
paragraph (1), is amended by adding after subsection (d) the
following:
``(e) Rice.--The Secretary shall make available to producers of each
crop of rice on a farm price support at a level that is not less than 50
percent, or more than 90 percent of the parity price for rice as the
Secretary determines will not result in increasing stocks of rice to the
Commodity Credit Corporation.''.
(c) Suspension of Certain Quota Provisions.--The joint resolution
entitled ``A joint resolution relating to corn and wheat marketing
quotas under the Agricultural Adjustment Act of 1938, as amended'',
approved May 26, 1941 (7 U.S.C. 1330 and 1340), shall not be applicable
to the crops of wheat planted for harvest in the calendar years 1996
through 2002.
SEC. 172. <<NOTE: 7 USC 7302.>> EFFECT OF AMENDMENTS.
(a) Effect on Prior Crops.--Except as otherwise specifically
provided in this title and notwithstanding any other provision of law,
this title and the amendments made by this title shall not affect the
authority of the Secretary to carry out a price support or production
adjustment program for any of the 1991 through 1995 crops of an
agricultural commodity established under a provision of law in effect
immediately before the date of enactment of this title.
(b) Liability.--A provision of this title or an amendment made by
this title shall not affect the liability of any person under any
provision of law as in effect before the date of enactment of this
title.
Subtitle G--Commission on 21st Century Production Agriculture
SEC. 181. <<NOTE: 7 USC 7311.>> ESTABLISHMENT.
There is established a commission to be known as the ``Commission on
21st Century Production Agriculture'' (in this subtitle referred to as
the ``Commission'').
SEC. 182. <<NOTE: 7 USC 7312.>> COMPOSITION.
(a) Membership and Appointment.--The Commission shall be composed of
11 members, appointed as follows:
(1) <<NOTE: President.>> Three members shall be appointed by
the President.
[[Page 110 STAT. 939]]
(2) Four members shall be appointed by the Chairman of the
Committee on Agriculture of the House of Representatives in
consultation with the ranking minority member of the Committee.
(3) Four members shall be appointed by the Chairman of the
Committee on Agriculture, Nutrition, and Forestry of the Senate
in consultation with the ranking minority member of the
Committee.
(b) Qualifications.--At least 1 of the members appointed under each
of paragraphs (1), (2), and (3) of subsection (a) shall be an individual
who is primarily involved in production agriculture. All other members
of the Commission shall be appointed from among individuals having
knowledge and experience in agricultural production, marketing, finance,
or trade.
(c) Term of Members; Vacancies.--A member of the Commission shall be
appointed for the life of the Commission. A vacancy on the Commission
shall not affect its powers, but shall be filled in the same manner as
the original appointment was made.
(d) Time for Appointment; First Meeting.--The members of the
Commission shall be appointed not later than October 1, 1997. The
Commission shall convene its first meeting to carry out its duties under
this subtitle 30 days after 6 members of the Commission have been
appointed.
(e) Chairperson.--The chairperson of the Commission shall be
designated jointly by the Chairman of the Committee on Agriculture of
the House of Representatives and the Chairman of the Committee on
Agriculture, Nutrition, and Forestry of the Senate from among the
members of the Commission.
SEC. 183. <<NOTE: 7 USC 7313.>> COMPREHENSIVE REVIEW OF PAST AND FUTURE
OF PRODUCTION AGRICULTURE.
(a) Initial Review.--The Commission shall conduct a comprehensive
review of changes in the condition of production agriculture in the
United States since the date of enactment of this title and the extent
to which the changes are the result of this title and the amendments
made by this title. The review shall include the following:
(1) An assessment of the initial success of production
flexibility contracts in supporting the economic viability of
farming in the United States.
(2) An assessment of economic risks to farms delineated by
size of farm operation (such as small, medium, or large farms)
and region of production.
(3) An assessment of the food security situation in the
United States in the areas of trade, consumer prices,
international competitiveness of United States production
agriculture, food supplies, and humanitarian relief.
(4) An assessment of the changes in farmland values and
agricultural producer incomes since the date of enactment of
this title.
(5) An assessment of the extent to which regulatory relief
for agricultural producers has been enacted and implemented,
including the application of cost/benefit principles in the
issuance of agricultural regulations.
(6) An assessment of the extent to which tax relief for
agricultural producers has been enacted in the form of capital
[[Page 110 STAT. 940]]
gains tax reductions, estate tax exemptions, and mechanisms to
average tax loads over high- and low-income years.
(7) An assessment of the effect of any Federal Government
interference in agricultural export markets, such as the
imposition of trade embargoes, and the degree of implementation
and success of international trade agreements and United States
export programs.
(8) An assessment of the likely effect of the sale, lease,
or transfer of farm poundage quota for peanuts across State
lines.
(b) Subsequent Review.--The Commission shall conduct a comprehensive
review of the future of production agriculture in the United States and
the appropriate role of the Federal Government in support of production
agriculture. The review shall include the following:
(1) An assessment of changes in the condition of production
agriculture in the United States since the initial review
conducted under subsection (a).
(2) Identification of the appropriate future relationship of
the Federal Government with production agriculture after 2002.
(3) An assessment of the personnel and infrastructure
requirements of the Department of Agriculture necessary to
support the future relationship of the Federal Government with
production agriculture.
(4) An assessment of economic risks to farms delineated by
size of farm operation (such as small, medium, or large farms)
and region of production.
(c) Recommendations.--In carrying out the subsequent review under
subsection (b), the Commission shall develop specific recommendations
for legislation to achieve the appropriate future relationship of the
Federal Government with production agriculture identified under
subsection (a)(2).
SEC. 184. <<NOTE: 7 USC 7314.>> REPORTS.
(a) Report on Initial Review.--Not later than June 1, 1998, the
Commission shall submit to the President, the Committee on Agriculture
of the House of Representatives, and the Committee on Agriculture,
Nutrition, and Forestry of the Senate a report containing the results of
the initial review conducted under section 183(a).
(b) Report on Subsequent Review.--Not later than January 1, 2001,
the Commission shall submit to the President and the congressional
committees specified in subsection (a) a report containing the results
of the subsequent review conducted under section 183(b).
SEC. 185. <<NOTE: 7 USC 7315.>> POWERS.
(a) Hearings.--The Commission may, for the purpose of carrying out
this subtitle, conduct such hearings, sit and act at such times, take
such testimony, and receive such evidence, as the Commission considers
appropriate.
(b) Assistance From Other Agencies.--The Commission may secure
directly from any department or agency of the Federal Government such
information as may be necessary for the Commission to carry out its
duties under this subtitle. On the request of the chairperson of the
Commission, the head of the department or agency shall, to the extent
permitted by law, furnish such information to the Commission.
[[Page 110 STAT. 941]]
(c) Mail.--The Commission may use the United States mails in the
same manner and under the same conditions as the departments and
agencies of the Federal Government.
(d) Assistance From Secretary.--The Secretary shall provide to the
Commission appropriate office space and such reasonable administrative
and support services as the Commission may request.
SEC. 186. <<NOTE: 7 USC 7316.>> COMMISSION PROCEDURES.
(a) Meetings.--The Commission shall meet on a regular basis (as
determined by the chairperson) and at the call of the chairperson or a
majority of its members.
(b) Quorum.--A majority of the members of the Commission shall
constitute a quorum for the transaction of business.
SEC. 187. <<NOTE: 7 USC 7317.>> PERSONNEL MATTERS.
(a) Compensation.--Each member of the Commission shall serve without
compensation, but shall be allowed travel expenses including per diem in
lieu of subsistence, as authorized by section 5703 of title 5, United
States Code, when engaged in the performance of Commission duties.
(b) Staff.--
(1) Appointment.--The Commission shall appoint a staff
director, who shall be paid at a rate not to exceed the maximum
rate of basic pay under section 5376 of title 5, United States
Code, and such professional and clerical personnel as may be
reasonable and necessary to enable the Commission to carry out
its duties under this subtitle without regard to the provisions
of title 5, United States Code, governing appointments in the
competitive service, and without regard to the provisions of
chapter 51 and subchapter III of chapter 53 of such title, or
any other provision of law, relating to the number,
classification, and General Schedule rates.
(2) Limitation on compensation.--No employee appointed under
this subsection (other than the staff director) may be
compensated at a rate to exceed the maximum rate applicable to
level GS-15 of the General Schedule.
(c) Detailed Personnel.--On the request of the chairperson of the
Commission, the head of any department or agency of the Federal
Government is authorized to detail, without reimbursement, any personnel
of the department or agency to the Commission to assist the Commission
in carrying out its duties under this section. The detail of any
individual may not result in the interruption or loss of civil service
status or other privilege of the individual.
SEC. 188. <<NOTE: 7 USC 7318.>> TERMINATION OF COMMISSION.
The Commission shall terminate on submission of the final report
required by section 184.
Subtitle H--Miscellaneous Commodity Provisions
SEC. 191. <<NOTE: 7 USC 7331.>> OPTIONS PILOT PROGRAM.
(a) Pilot Programs Authorized.--Until December 31, 2002, the
Secretary of Agriculture may conduct a pilot program for 1 or more
agricultural commodities supported under this title to
[[Page 110 STAT. 942]]
ascertain whether futures and options contracts can provide producers
with reasonable protection from the financial risks of fluctuations in
price, yield, and income inherent in the production and marketing of the
commodities. The pilot program shall be an alternative to other related
programs of the Department of Agriculture.
(b) Distribution of Pilot Program.--For each agricultural commodity
included in the pilot program, the Secretary may operate the pilot
program in not more than 100 counties, except that not more than 6 of
the counties may be located in any 1 State. The pilot program for a
commodity shall not be operated in any county for more than 3 of the
1996 through 2002 calendar years.
(c) Eligible Participants.--In operating the pilot program, the
Secretary may enter into contract with a producer who--
(1) is eligible for a production flexibility contract, a
marketing assistance loan, or other assistance under this title;
(2) volunteers to participate in the pilot program;
(3) operates a farm located in a county selected for the
pilot program; and
(4) meets such other eligibility requirements as the
Secretary may establish.
(d) Notice to Producers.--The Secretary shall provide notice to each
producer participating in the pilot program that--
(1) the participation of the producer is voluntary; and
(2) neither the United States, the Commodity Credit
Corporation, the Federal Crop Insurance Corporation, the
Department of Agriculture, nor any other Federal agency is
authorized to guarantee that participants in the pilot program
will be better or worse off financially as a result of
participation in the pilot program than the producer would have
been if the producer had not participated in the pilot program.
(e) Contracts.--The Secretary shall set forth in each contract under
the pilot program the terms and conditions for participation in the
pilot program and the notice required by subsection (d).
(f) Eligible Markets.--Trades for futures and options contracts
under the pilot program shall be carried out on commodity futures and
options markets designated as contract markets under the Commodity
Exchange Act (7 U.S.C. 1 et seq.).
(g) Recordkeeping.--A producer participating in the pilot program
shall compile, maintain, and submit (or authorize the compilation,
maintenance, and submission) of such documentation as the regulations
governing the pilot program require.
(h) Use of Commodity Credit Corporation.--The Secretary shall fund
and operate the pilot program through the Commodity Credit Corporation.
To the maximum extent practicable, the Secretary shall operate the pilot
program in a budget neutral manner.
(i) Conforming Repeal.--The Options Pilot Program Act of 1990
(subtitle E of title XI of Public Law 101-624; 7 U.S.C. 1421 note) is
repealed.
SEC. 192. <<NOTE: 7 USC 7332.>> RISK MANAGEMENT EDUCATION.
In consultation with the Commodity Futures Trading Commission, the
Secretary shall provide such education in management of the financial
risks inherent in the production and marketing of agricultural
commodities as the Secretary considers appropriate. As part of such
educational activities, the Secretary may develop and implement programs
to facilitate the participation of agricultural producers in commodity
futures trading programs, forward
[[Page 110 STAT. 943]]
contracting options, and insurance protection programs by assisting and
training producers in the usage of such programs. In implementing this
authority, the Secretary may use existing research and extension
authorities and resources of the Department of Agriculture.
SEC. 193. CROP INSURANCE.
(a) Catastrophic Risk Protection.--
(1) Single delivery.--Section 508(b)(4) of the Federal Crop
Insurance Act (7 U.S.C. 1508(b)(4)) is amended by adding at the
end the following:
``(C) Delivery of coverage.--
``(i) In general.--In full consultation with
approved insurance providers, the Secretary may
continue to offer catastrophic risk protection in
a State (or a portion of a State) through local
offices of the Department if the Secretary
determines that there is an insufficient number of
approved insurance providers operating in the
State or portion of the State to adequately
provide catastrophic risk protection coverage to
producers.
``(ii) Coverage by approved insurance
providers.--To the extent that catastrophic risk
protection coverage by approved insurance
providers is sufficiently available in a State (or
a portion of a State) as determined by the
Secretary, only approved insurance providers may
provide the coverage in the State or portion of
the State.
``(iii) <<NOTE: Announcement.>> 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) <<NOTE: Effective date.>> 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
[[Page 110 STAT. 944]]
begin at a date that permits the process to be
completed not later than 45 days before the sales
closing date.''.
(2) Waiver of mandatory linkage.--Section 508(b)(7) of the
Federal Crop Insurance Act (7 U.S.C. 1508(b)(7)) is amended by
striking subparagraph (A) and inserting the following:
``(A) <<NOTE: Effective date.>> In general.--
Effective for the spring-planted 1996 and subsequent
crops (and fall-planted 1996 crops at the option of the
Secretary), to be eligible for any payment or loan under
the Agricultural Market Transition Act, for the
conservation reserve program, or for any benefit
described in section 371 of the Consolidated Farm and
Rural Development Act (7 U.S.C. 2008f), a person shall--
``(i) obtain at least the catastrophic level
of insurance for each crop of economic
significance in which the person has an interest;
or
``(ii) provide a written waiver to the
Secretary that waives any eligibility for
emergency crop loss assistance in connection with
the crop.''.
(3) <<NOTE: 7 USC 1508 note.>> Special rule for 1996.--
(A) Effective period.--This paragraph shall apply
only to the 1996 crop year.
(B) Availability.--During a period of not less than
2 weeks, but not more than 4 weeks, beginning on the
date of enactment of this title, the Secretary shall
provide producers with an opportunity to obtain
catastrophic risk protection insurance under section
508(b) of the Federal Crop Insurance Act (7 U.S.C.
1508(b)) for a spring-planted crop, and limited
additional coverage for malting barley under the Malting
Barley Price and Quality Endorsement. The Federal Crop
Insurance Corporation may attach such limitations and
restrictions on obtaining insurance during this period
as the Corporation considers necessary to maintain the
actuarial soundness of the crop insurance program.
(C) Attachment.--Insurance coverage under any policy
obtained under this paragraph during the extended sales
period shall not attach until 10 days after the
application.
(D) Cancellation.--During the extended period, a
producer may cancel a catastrophic risk protection
policy if--
(i) the policy is a continuation of a policy
that was obtained for a previous crop year; and
(ii) the cancellation request is made before
the acreage reporting date for the policy for the
1996 crop year.
(b) <<NOTE: 7 USC 1508 note.>> Crop Insurance Pilot Project.--
(1) Coverage.--The Secretary of Agriculture shall develop
and administer a pilot project for crop insurance coverage that
indemnifies crop losses due to a natural disaster such as insect
infestation or disease.
(2) Actuarial soundness.--A pilot project under this
paragraph shall be actuarially sound, as determined by the
Secretary and administered at no net cost.
(3) Duration.--A pilot project under this paragraph shall be
of two years' duration.
[[Page 110 STAT. 945]]
(c) Crop Insurance for Nursery Crops.--Section 508(a)(6) of the
Federal Crop Insurance Act (7 U.S.C. 1508(a)(6)) is amended by adding at
the end the following:
``(D) Addition of nursery crops.--Not later than 2
years after the date of enactment of this subparagraph,
the Corporation shall conduct a study and limited pilot
program on the feasibility of insuring nursery crops.''.
(d) Marketing Windows.--Section 508(j) of the Federal Crop Insurance
Act (7 U.S.C. 1508(j)) is amended by adding at the end the following:
``(4) Marketing windows.--The Corporation shall consider
marketing windows in determining whether it is feasible to
require planting during a crop year.''.
(e) Funding.--
(1) Mandatory expenses.--Section 516(a)(2) of the Federal
Crop Insurance Act (7 U.S.C. 1516(a)(2)) is amended--
(A) by inserting ``and'' at the end of subparagraph
(A);
(B) by striking ``; and'' at the end of subparagraph
(B) and inserting a period; and
(C) by striking subparagraph (C).
(2) Funding of sales commissions.--Section 516(b) of the
Federal Crop Insurance Act (7 U.S.C. 1516(b)) is amended--
(A) in paragraph (1)--
(i) by striking ``(A) In general'' and all
that follows through ``subparagraph (B), in'' and
inserting ``In''; and
(ii) by striking subparagraph (B); and
(B) in paragraph (2)(B), by striking ``subject to
paragraph (1)(B),''.
(3) Other expenses.--Section 516(b)(2)(A) of the Federal
Crop Insurance Act (7 U.S.C. 1516(b)(2)(A)) is amended by
striking ``, noninsured assistance benefits,''.
(f) Limitation on Multiple Benefits for Same Loss.--Section 508 of
the Federal Crop Insurance Act (7 U.S.C. 1508) is amended by adding at
the end the following:
``(n) Limitation on Multiple Benefits for Same Loss.--If a producer
who is eligible to receive benefits under catastrophic risk protection
under subsection (b) is also eligible to receive assistance for the same
loss under any other program administered by the Secretary, the producer
shall be required to elect whether to receive benefits under this title
or under the other program, but not both. A producer who purchases
additional coverage under subsection (c) may also receive assistance for
the same loss under other programs administered by the Secretary, except
that the amount received for the loss under the additional coverage
together with the amount received under the other programs may not
exceed the amount of the actual loss of the producer.''.
SEC. 194. ESTABLISHMENT OF OFFICE OF RISK MANAGEMENT.
(a) Establishment.--The Department of Agriculture Reorganization Act
of 1994 is amended by inserting after section 226 (7 U.S.C. 6932) the
following new section:
``SEC. 226A. <<NOTE: 7 USC 6933.>> OFFICE OF RISK MANAGEMENT.
``(a) Establishment.--Subject to subsection (e), the Secretary shall
establish and maintain in the Department an independent Office of Risk
Management.
[[Page 110 STAT. 946]]
``(b) Functions of the Office of Risk Management.--The Office of
Risk Management shall have jurisdiction over the following functions:
``(1) Supervision of the Federal Crop Insurance Corporation.
``(2) Administration and oversight of all aspects, including
delivery through local offices of the Department, of all
programs authorized under the Federal Crop Insurance Act (7
U.S.C. 1501 et seq.).
``(3) Any pilot or other programs involving revenue
insurance, risk management savings accounts, or the use of the
futures market to manage risk and support farm income that may
be established under the Federal Crop Insurance Act or other
law.
``(4) Such other functions as the Secretary considers
appropriate.
``(c) Administrator.--
``(1) Appointment.--The Office of Risk Management shall be
headed by an Administrator who shall be appointed by the
Secretary.
``(2) Manager.--The Administrator of the Office of Risk
Management shall also serve as Manager of the Federal Crop
Insurance Corporation.
``(d) Resources.--
``(1) Functional coordination.--Certain functions of the
Office of Risk Management, such as human resources, public
affairs, and legislative affairs, may be provided by a
consolidation of such functions under the Under Secretary of
Agriculture for Farm and Foreign Agricultural Services.
``(2) Minimum provisions.--Notwithstanding paragraph (1) or
any other provision of law or order of the Secretary, the
Secretary shall provide the Office of Risk Management with human
and capital resources sufficient for the Office to carry out its
functions in a timely and efficient manner.''.
(b) Fiscal Year 1996 Funding.--From funds appropriated for the
salaries and expenses of the Consolidated Farm Service Agency in the
Agriculture, Rural Development, Food and Drug Administration, and
Related Agencies Appropriations Act, 1996 (Public Law 104-37), the
Secretary of Agriculture may use such sums as necessary for the salaries
and expenses of the Office of Risk Management established under
subsection (a).
(c) Conforming Amendment.--Section 226(b) of the Act (7 U.S.C.
6932(b)) is amended by striking paragraph (2).
SEC. 195. REVENUE INSURANCE.
Section 508(h) of the Federal Crop Insurance Act (7 U.S.C. 1508(h))
is amended by adding at the end the following:
``(9) Revenue insurance pilot program.--
``(A) In general.--Not later than December 31, 1996,
the Secretary shall carry out a pilot program in a
limited number of counties, as determined by the
Secretary, for crop years 1997, 1998, 1999, and 2000,
under which a producer of wheat, feed grains, soybeans,
or such other commodity as the Secretary considers
appropriate may elect to receive insurance against loss
of revenue, as determined by the Secretary.
``(B) Administration.--Revenue insurance under this
paragraph shall--
[[Page 110 STAT. 947]]
``(i) be offered through reinsurance
arrangements with private insurance companies;
``(ii) offer at least a minimum level of
coverage that is an alternative to catastrophic
crop insurance;
``(iii) be actuarially sound; and
``(iv) require the payment of premiums and
administrative fees by an insured producer.''.
SEC. 196. ADMINISTRATION AND OPERATION OF NONINSURED CROP ASSISTANCE
PROGRAM.
(a) Operation and Administration of Program.--
(1) In general.--In the case of an eligible crop described
in paragraph (2), the Secretary of Agriculture shall operate a
noninsured crop disaster assistance program to provide coverage
equivalent to the catastrophic risk protection otherwise
available under section 508(b) of the Federal Crop Insurance Act
(7 U.S.C. 1508(b)). The Secretary shall carry out this section
through the Consolidated Farm Service Agency (in this section
referred to as the ``Agency'').
(2) Eligible crops.--
(A) In general.--In this section, the term
``eligible crop'' means each commercial crop or other
agricultural commodity (except livestock)--
(i) for which catastrophic risk protection
under section 508(b) of the Federal Crop Insurance
Act (7 U.S.C. 1508(b)) is not available; and
(ii) that is produced for food or fiber.
(B) Crops specifically included.--The term
``eligible crop'' shall include floricultural,
ornamental nursery, and Christmas tree crops, turfgrass
sod, seed crops, aquaculture (including ornamental
fish), and industrial crops.
(3) Cause of loss.--To qualify for assistance under this
section, the losses of the noninsured commodity shall be due to
drought, flood, or other natural disaster, as determined by the
Secretary.
(b) Application for Noninsured Crop Disaster Assistance.--
(1) Timely application.--To be eligible for assistance under
this section, a producer shall submit an application for
noninsured crop disaster assistance at a local office of the
Department. The application shall be in such form, contain such
information, and be submitted at such time as the Secretary may
require.
(2) Records.--A producer shall provide records, as required
by the Secretary, of crop acreage, acreage yields, and
production.
(3) Acreage reports.--A producer shall provide reports on
acreage planted or prevented from being planted, as required by
the Secretary, by the designated acreage reporting date for the
crop and location as established by the Secretary.
(c) Loss Requirements.--
(1) Required area loss.--A producer of an eligible crop
shall not receive noninsured crop disaster assistance unless the
average yield for that crop, or an equivalent measure in the
event yield data are not available, in an area falls below 65
percent of the expected area yield, as established by the
Secretary.
[[Page 110 STAT. 948]]
(2) Prevented planting.--Subject to paragraph (1), the
Secretary shall make a prevented planting noninsured crop
disaster assistance payment if the producer is prevented from
planting more than 35 percent of the acreage intended for the
eligible crop because of drought, flood, or other natural
disaster, as determined by the Secretary.
(3) Reduced yields.--Subject to paragraph (1), the Secretary
shall make a reduced yield noninsured crop disaster assistance
payment to a producer if the total quantity of the eligible crop
that the producer is able to harvest on any farm is, because of
drought, flood, or other natural disaster as determined by the
Secretary, less than 50 percent of the expected individual yield
for the crop, as determined by the Secretary, factored for the
interest of the producer for the crop.
(d) Payment.--The Secretary shall make available to a producer
eligible for noninsured assistance under this section a payment computed
by multiplying--
(1) the quantity that is less than 50 percent of the
established yield for the crop; by
(2)(A) in the case of each of the 1996 through 1998 crop
years, 60 percent of the average market price for the crop (or
any comparable coverage determined by the Secretary); or
(B) in the case of each of the 1999 and subsequent crop
years, 55 percent of the average market price for the crop (or
any comparable coverage determined by the Secretary); by
(3) a payment rate for the type of crop (as determined by
the Secretary) that--
(A) in the case of a crop that is produced with a
significant and variable harvesting expense, reflects
the decreasing cost incurred in the production cycle for
the crop that is--
(i) harvested;
(ii) planted but not harvested; and
(iii) prevented from being planted because of
drought, flood, or other natural disaster (as
determined by the Secretary); and
(B) in the case of a crop that is not produced with
a significant and variable harvesting expense, as
determined by the Secretary.
(e) Yield Determinations.--
(1) Establishment.--The Secretary shall establish farm
yields for purposes of providing noninsured crop disaster
assistance under this section.
(2) Actual production history.--The Secretary shall
determine yield coverage using the actual production history of
the producer over a period of not less than the 4 previous
consecutive crop years and not more than 10 consecutive crop
years. Subject to paragraph (3), the yield for the year in which
noninsured crop disaster assistance is sought shall be equal to
the average of the actual production history of the producer
during the period considered.
(3) Assignment of yield.--If a producer does not submit
adequate documentation of production history to determine a crop
yield under paragraph (2), the Secretary shall assign to the
producer a yield equal to not less than 65 percent of
[[Page 110 STAT. 949]]
the transitional yield of the producer (adjusted to reflect
actual production reflected in the records acceptable to the
Secretary for continuous years), as specified in regulations
issued by the Secretary based on production history
requirements.
(4) Prohibition on assigned yields in certain counties.--
(A) In general.--
(i) Documentation.--If sufficient data are
available to demonstrate that the acreage of a
crop in a county for the crop year has increased
by more than 100 percent over any year in the
preceding 7 crop years or, if data are not
available, if the acreage of the crop in the
county has increased significantly from the
previous crop years, a producer must provide such
detailed documentation of production costs, acres
planted, and yield for the crop year for which
benefits are being claimed as is required by the
Secretary. If the Secretary determines that the
documentation provided is not sufficient, the
Secretary may require documenting proof that the
crop, had the crop been harvested, could have been
marketed at a reasonable price.
(ii) Prohibition.--Except as provided in
subparagraph (B), a producer who produces a crop
on a farm located in a county described in clause
(i) may not obtain an assigned yield.
(B) Exception.--A crop or a producer shall not be
subject to this subsection if--
(i) the planted acreage of the producer for
the crop has been inspected by a third party
acceptable to the Secretary; or
(ii)(I) the County Executive Director and the
State Executive Director recommend an exemption
from the requirement to the Administrator of the
Agency; and
(II) the Administrator approves the
recommendation.
(5) Limitation on receipt of subsequent assigned yield.--A
producer who receives an assigned yield for the current year of
a natural disaster because required production records were not
submitted to the local office of the Department shall not be
eligible for an assigned yield for the year of the next natural
disaster unless the required production records of the previous
1 or more years (as applicable) are provided to the local
office.
(6) Yield variations due to different farming practices.--
The Secretary shall ensure that noninsured crop disaster
assistance accurately reflects significant yield variations due
to different farming practices, such as between irrigated and
nonirrigated acreage.
(f) Contract Payments.--A producer who has received a guaranteed
payment for production, as opposed to delivery, of a crop pursuant to a
contract shall have the production of the producer adjusted upward by
the amount of the production equal to the amount of the contract payment
received.
(g) Use of Commodity Credit Corporation.--The Secretary may use the
funds of the Commodity Credit Corporation to carry out this section.
[[Page 110 STAT. 950]]
(h) Exclusions.--Noninsured crop disaster assistance under this
section shall not cover losses due to--
(1) the neglect or malfeasance of the producer;
(2) the failure of the producer to reseed to the same crop
in those areas and under such circumstances where it is
customary to reseed; or
(3) the failure of the producer to follow good farming
practices, as determined by the Secretary.
(i) Payment and Income Limitations.--
(1) Definitions.--In this subsection:
(A) Person.--The term ``person'' has the meaning
provided the term in regulations issued by the
Secretary. The regulations shall conform, to the extent
practicable, to the regulations defining the term
``person'' issued under section 1001 of the Food
Security Act of 1985 (7 U.S.C. 1308).
(B) Qualifying gross revenues.--The term
``qualifying gross revenues'' means--
(i) if a majority of the gross revenue of the
person is received from farming, ranching, and
forestry operations, the gross revenue from the
farming, ranching, and forestry operations of the
person; and
(ii) if less than a majority of the gross
revenue of the person is received from farming,
ranching, and forestry operations, the gross
revenue of the person from all sources.
(2) Payment limitation.--The total amount of payments that a
person shall be entitled to receive annually under this section
may not exceed $100,000.
(3) Limitation on multiple benefits for same loss.--If a
producer who is eligible to receive benefits under this section
is also eligible to receive assistance for the same loss under
any other program administered by the Secretary, the producer
shall be required to elect whether to receive benefits under
this section or under the other program, but not both.
(4) Income limitation.--A person who has qualifying gross
revenues in excess of the amount specified in section 2266(a) of
the Food, Agriculture, Conservation, and Trade Act of 1990 (7
U.S.C. 1421 note) (as in effect on November 28, 1990) during the
taxable year (as determined by the Secretary) shall not be
eligible to receive any noninsured assistance payment under this
section.
(5) Regulations.--The Secretary shall issue regulations
prescribing such rules as the Secretary determines necessary to
ensure a fair and equitable application of section 1001 of the
Food Security Act of 1985 (7 U.S.C. 1308), the general payment
limitation regulations of the Secretary, and the limitations
established under this subsection.
(j) Conforming Repeal.--Section 519 of the Federal Crop Insurance
Act (7 U.S.C. 1519) is repealed.
[[Page 110 STAT. 951]]
TITLE II--AGRICULTURAL TRADE
Subtitle A--Amendments to Agricultural Trade Development and Assistance
Act of 1954 and Related Statutes
SEC. 201. FOOD AID TO DEVELOPING COUNTRIES.
(a) In General.--Section 3 of the Agricultural Trade Development and
Assistance Act of 1954 (7 U.S.C. 1691a) is amended to read as follows:
``SEC. 3. FOOD AID TO DEVELOPING COUNTRIES.
``(a) Policy.--In light of the Uruguay Round Agreement on
Agriculture and the Ministerial Decision on Measures Concerning the
Possible Negative Effects of the Reform Program on Least-Developed and
Net-Food Importing Developing Countries, the United States reaffirms the
commitment of the United States to providing food aid to developing
countries.
``(b) Sense of Congress.--It is the sense of Congress that--
``(1) the President should initiate consultations with other
donor nations to consider appropriate levels of food aid
commitments to meet the legitimate needs of developing
countries; and
``(2) the United States should increase its contribution of
bona fide food assistance to developing countries consistent
with the Agreement on Agriculture.''.
(b) Conforming Amendment.--Section 411 of the Uruguay Round
Agreements Act is amended by striking subsection (e) (19 U.S.C. 3611).
SEC. 202. TRADE AND DEVELOPMENT ASSISTANCE.
Section 101 of the Agricultural Trade Development and Assistance Act
of 1954 (7 U.S.C. 1701) is amended--
(1) by striking ``developing countries'' each place it
appears and inserting ``developing countries and private
entities''; and
(2) in subsection (b), by inserting ``and entities'' before
the period at the end.
SEC. 203. AGREEMENTS REGARDING ELIGIBLE COUNTRIES AND PRIVATE ENTITIES.
Section 102 of the Agricultural Trade Development and Assistance Act
of 1954 (7 U.S.C. 1702) is amended to read as follows:
``SEC. 102. AGREEMENTS REGARDING ELIGIBLE COUNTRIES AND PRIVATE
ENTITIES.
``(a) Priority.--In selecting agreements to be entered into under
this title, the Secretary shall give priority to agreements providing
for the export of agricultural commodities to developing countries
that--
``(1) have the demonstrated potential to become commercial
markets for competitively priced United States agricultural
commodities;
``(2) are undertaking measures for economic development
purposes to improve food security and agricultural development,
alleviate poverty, and promote broad-based equitable and
sustainable development; and
[[Page 110 STAT. 952]]
``(3) demonstrate the greatest need for food.
``(b) Private Entities.--An agreement entered into under this title
with a private entity shall require such security, or such other
provisions as the Secretary determines necessary, to provide reasonable
and adequate assurance of repayment of the financing extended to the
private entity.
``(c) Agricultural Market Development Plan.--
``(1) Definition of agricultural trade organization.--In
this subsection, the term `agricultural trade organization'
means a United States agricultural trade organization that
promotes the export and sale of a United States agricultural
commodity and that does not stand to profit directly from the
specific sale of the commodity.
``(2) Plan.--The Secretary shall consider a developing
country for which an agricultural market development plan has
been approved under this subsection to have the demonstrated
potential to become a commercial market for competitively priced
United States agricultural commodities for the purpose of
granting a priority under subsection (a).
``(3) Requirements.--
``(A) In general.--To be approved by the Secretary,
an agricultural market development plan shall--
``(i) be submitted by a developing country or
private entity, in conjunction with an
agricultural trade organization;
``(ii) describe a project or program for the
development and expansion of a commercial market
for a United States agricultural commodity in a
developing country, and the economic development
of the country, using funds derived from the sale
of agricultural commodities received under an
agreement described in section 101;
``(iii) provide for any matching funds that
are required by the Secretary for the project or
program;
``(iv) provide for a results-oriented means of
measuring the success of the project or program;
and
``(v) provide for graduation to the use of
non-Federal funds to carry out the project or
program, consistent with requirements established
by the Secretary.
``(B) Agricultural trade organization.--The project
or program shall be designed and carried out by the
agricultural trade organization.
``(C) Additional requirements.--An agricultural
market development plan shall contain such additional
requirements as are determined necessary by the
Secretary.
``(4) Administrative costs.--
``(A) In general.--The Secretary may make funds made
available to carry out this title available for the
reimbursement of administrative expenses incurred by
agricultural trade organizations in developing,
implementing, and administering agricultural market
development plans, subject to such requirements and in
such amounts as the Secretary considers appropriate.
``(B) Duration.--The funds may be made available to
agricultural trade organizations for the duration of the
applicable agricultural market development plan.
[[Page 110 STAT. 953]]
``(C) Termination.--The Secretary may terminate
assistance made available under this subsection if the
agricultural trade organization is not carrying out the
approved agricultural market development plan.''.
SEC. 204. TERMS AND CONDITIONS OF SALES.
Section 103 of the Agricultural Trade Development and Assistance Act
of 1954 (7 U.S.C. 1703) is amended--
(1) in subsection (a)(2)(A)--
(A) by striking ``a recipient country to make''; and
(B) by striking ``such country'' and inserting ``the
appropriate country'';
(2) in subsection (c), by striking ``less than 10 nor''; and
(3) in subsection (d)--
(A) by striking ``recipient country'' and inserting
``developing country or private entity''; and
(B) by striking ``7'' and inserting ``5''.
SEC. 205. USE OF LOCAL CURRENCY PAYMENT.
Section 104 of the Agricultural Trade Development and Assistance Act
of 1954 (7 U.S.C. 1704) is amended--
(1) in subsection (a), by striking ``recipient country'' and
inserting ``developing country or private entity''; and
(2) in subsection (c)--
(A) by striking ``recipient country'' each place it
appears and inserting ``appropriate developing
country''; and
(B) in paragraph (3), by striking ``recipient
countries'' and inserting ``appropriate developing
countries''.
SEC. 206. VALUE-ADDED FOODS.
Section 105 of the Agricultural Trade Development and Assistance Act
of 1954 (7 U.S.C. 1705) is repealed.
SEC. 207. ELIGIBLE ORGANIZATIONS.
(a) In General.--Section 202 of the Agricultural Trade Development
and Assistance Act of 1954 (7 U.S.C. 1722) is amended--
(1) by striking subsection (b) and inserting the following:
``(b) Nonemergency Assistance.--
``(1) In general.--The Administrator may provide
agricultural commodities for nonemergency assistance under this
title through eligible organizations (as described in subsection
(d)) that have entered into an agreement with the Administrator
to use the commodities in accordance with this title.
``(2) Limitation.--The Administrator may not deny a request
for funds submitted under this subsection because the program
for which the funds are requested--
``(A) would be carried out by the eligible
organization in a foreign country in which the Agency
for International Development does not have a mission,
office, or other presence; or
``(B) is not part of a development plan for the
country prepared by the Agency.''; and
(2) in subsection (e)--
(A) in the subsection heading, by striking ``Private
Voluntary Organizations and Cooperatives'' and inserting
``Eligible Organizations'';
(B) in paragraph (1)--
[[Page 110 STAT. 954]]
(i) by striking ``$13,500,000'' and inserting
``$28,000,000''; and
(ii) by striking ``private voluntary
organizations and cooperatives to assist such
organizations and cooperatives'' and inserting
``eligible organizations described in subsection
(d), to assist the organizations'';
(C) by striking paragraph (2) and inserting the
following:
``(2) Request for funds.--To receive funds made available
under paragraph (1), an eligible organization described in
subsection (d) shall submit a request for the funds that is
subject to approval by the Administrator.''; and
(D) in paragraph (3), by striking ``a private
voluntary organization or cooperative, the Administrator
may provide assistance to that organization or
cooperative'' and inserting ``an eligible organization,
the Administrator may provide assistance to the eligible
organization''.
(b) Conforming Amendments.--Section 207 of the Agricultural Trade
Development and Assistance Act of 1954 (7 U.S.C. 1726a) is amended--
(1) in subsection (a)(1), by striking ``a private voluntary
organization or cooperative'' each place it appears and
inserting ``an eligible organization''; and
(2) in subsection (b)--
(A) in paragraph (1), by striking ``private
voluntary organizations and cooperatives'' and inserting
``eligible organizations''; and
(B) in paragraph (2), by striking ``organizations,
cooperatives,'' and inserting ``eligible
organizations''.
SEC. 208. GENERATION AND USE OF FOREIGN CURRENCIES.
Section 203 of the Agricultural Trade Development and Assistance Act
of 1954 (7 U.S.C. 1723) is amended--
(1) in subsection (a), by inserting ``, or in a country in
the same region,'' after ``in the recipient country'';
(2) in subsection (b)--
(A) by inserting ``or in countries in the same
region,'' after ``in recipient countries,''; and
(B) by striking ``10 percent'' and inserting ``15
percent'';
(3) in subsection (c), by inserting ``or in a country in the
same region,'' after ``in the recipient country,''; and
(4) in subsection (d)(2), by inserting ``or within a country
in the same region'' after ``within the recipient country''.
SEC. 209. GENERAL LEVELS OF ASSISTANCE UNDER PUBLIC LAW 480.
Section 204 of the Agricultural Trade Development and Assistance Act
of 1954 (7 U.S.C. 1724) is amended--
(1) in subsection (a)--
(A) in paragraph (1), by striking ``amount that''
and all that follows through the period at the end and
inserting ``amount that for each of fiscal years 1996
through 2002 is not less than 2,025,000 metric tons.'';
(B) in paragraph (2), by striking ``amount that''
and all that follows through the period at the end and
inserting ``amount that for each of fiscal years 1996
through 2002 is not less than 1,550,000 metric tons.'';
and
[[Page 110 STAT. 955]]
(C) in paragraph (3), by adding at the end the
following: ``No waiver shall be made before the
beginning of the applicable fiscal year.''; and
(2) in subsection (b)(1), by inserting before the period at
the end the following: ``and that not less than 50 percent of
the quantity of the bagged commodities that are whole grain
commodities be bagged in the United States''.
SEC. 210. FOOD AID CONSULTATIVE GROUP.
Section 205 of the Agricultural Trade Development and Assistance Act
of 1954 (7 U.S.C. 1725) is amended--
(1) in subsection (a), by striking ``private voluntary
organizations, cooperatives and indigenous non-governmental
organizations'' and inserting ``eligible organizations described
in section 202(d)(1)'';
(2) in subsection (b)--
(A) in paragraph (2), by striking ``for
International Affairs and Commodity Programs'' and
inserting ``of Agriculture for Farm and Foreign
Agricultural Services'';
(B) in paragraph (4), by striking ``and'' at the
end;
(C) in paragraph (5), by striking the period at the
end and inserting ``; and''; and
(D) by adding at the end the following:
``(6) representatives from agricultural producer groups in
the United States.'';
(3) in the second sentence of subsection (d), by inserting
``(but at least twice per year)'' after ``when appropriate'';
and
(4) in subsection (f), by striking ``1995'' and inserting
``2002''.
SEC. 211. SUPPORT OF NONGOVERNMENTAL ORGANIZATIONS.
(a) In General.--Section 306(b) of the Agricultural Trade
Development and Assistance Act of 1954 (7 U.S.C. 1727e(b)) is amended--
(1) in the subsection heading, by striking ``Indigenous Non-
Governmental'' and inserting ``Nongovernmental''; and
(2) by striking ``utilization of indigenous'' and inserting
``utilization of''.
(b) Conforming Amendment.--Section 402 of the Agricultural Trade
Development and Assistance Act of 1954 (7 U.S.C. 1732) is amended by
striking paragraph (6) and inserting the following:
``(6) Nongovernmental organization.--The term
`nongovernmental organization' means an organization that works
at the local level to solve development problems in a foreign
country in which the organization is located, except that the
term does not include an organization that is primarily an
agency or instrumentality of the government of the foreign
country.''.
SEC. 212. COMMODITY DETERMINATIONS.
Section 401 of the Agricultural Trade Development and Assistance Act
of 1954 (7 U.S.C. 1731) is amended--
(1) by striking subsections (a) through (d) and inserting
the following:
``(a) Availability of Commodities.--No agricultural commodity shall
be available for disposition under this Act if the Secretary determines
that the disposition would reduce the domestic supply of the commodity
below the supply needed to meet domestic requirements and provide
adequate carryover (as determined by the Sec
[[Page 110 STAT. 956]]
retary), unless the Secretary determines that some part of the supply
should be used to carry out urgent humanitarian purposes under this
Act.'';
(2) by redesignating subsections (e) and (f) as subsections
(b) and (c), respectively; and
(3) in subsection (c) (as so redesignated), by striking
``(e)(1)'' and inserting ``(b)(1)''.
SEC. 213. GENERAL PROVISIONS.
Section 403 of the Agricultural Trade Development and Assistance Act
of 1954 (7 U.S.C. 1733) is amended--
(1) in subsection (b)--
(A) in the subsection heading, by striking
``Consultations'' and inserting ``Impact on Local
Farmers and Economy''; and
(B) by striking ``consult with'' and all that
follows through ``other donor organizations to'';
(2) in subsection (c)--
(A) by striking ``from countries''; and
(B) by striking ``for use'' and inserting ``or
use'';
(3) in subsection (f)--
(A) by inserting ``or private entities, as
appropriate,'' after ``from countries''; and
(B) by inserting ``or private entities'' after
``such countries''; and
(4) in subsection (i)(2), by striking subparagraph (C).
SEC. 214. AGREEMENTS.
Section 404 of the Agricultural Trade Development and Assistance Act
of 1954 (7 U.S.C. 1734) is amended--
(1) in subsection (a), by inserting ``with foreign
countries'' after ``Before entering into agreements'';
(2) in subsection (b)(2)--
(A) by inserting ``with foreign countries'' after
``with respect to agreements entered into''; and
(B) by inserting before the semicolon at the end the
following: ``and broad-based economic growth''; and
(3) in subsection (c), by striking paragraph (1) and
inserting the following:
``(1) In general.--Agreements to provide assistance on a
multi-year basis to recipient countries or to eligible
organizations--
``(A) may be made available under titles I and III;
and
``(B) shall be made available under title II.''.
SEC. 215. USE OF COMMODITY CREDIT CORPORATION.
Section 406 of the Agricultural Trade Development and Assistance Act
of 1954 (7 U.S.C. 1736) is amended--
(1) in subsection (a), by striking ``shall'' and inserting
``may''; and
(2) in subsection (b)--
(A) by striking ``this Act'' and inserting ``titles
II and III''; and
(B) by striking paragraph (4) and inserting the
following:
[[Page 110 STAT. 957]]
``(4) the vessel freight charges from United States ports or
designated Canadian transshipment ports, as determined by the
Secretary, to designated ports of entry abroad;''.
SEC. 216. ADMINISTRATIVE PROVISIONS.
Section 407 of the Agricultural Trade Development and Assistance Act
of 1954 (7 U.S.C. 1736a) is amended--
(1) in subsection (a)--
(A) in paragraph (1), by inserting ``or private
entity that enters into an agreement under title I''
after ``importing country''; and
(B) in paragraph (2), by adding at the end the
following: ``Resulting contracts may contain such terms
and conditions as the Secretary determines are necessary
and appropriate.'';
(2) in subsection (c)--
(A) in paragraph (1)(A), by inserting ``importer
or'' before ``importing country''; and
(B) in paragraph (2)(A), by inserting ``importer
or'' before ``importing country'';
(3) in subsection (d)--
(A) by striking paragraph (2) and inserting the
following:
``(2) Freight procurement.--Notwithstanding the Federal
Property and Administrative Services Act of 1949 (40 U.S.C. 471
et seq.) or other similar provisions of law relating to the
making or performance of Federal Government contracts, ocean
transportation under titles II and III may be procured on the
basis of full and open competitive procedures. Resulting
contracts may contain such terms and conditions as the
Administrator determines are necessary and appropriate.''; and
(B) by striking paragraph (4);
(4) in subsection (g)(2)--
(A) in subparagraph (B), by striking ``and'' at the
end;
(B) in subparagraph (C), by striking the period at
the end and inserting ``; and''; and
(C) by adding at the end the following:
``(D) an assessment of the progress towards
achieving food security in each country receiving food
assistance from the United States Government, with
special emphasis on the nutritional status of the
poorest populations in each country.''; and
(5) by striking subsection (h).
SEC. 217. EXPIRATION DATE.
Section 408 of the Agricultural Trade Development and Assistance Act
of 1954 (7 U.S.C. 1736b) is amended by striking ``1995'' and inserting
``2002''.
SEC. 218. REGULATIONS.
Section 409 of the Agricultural Trade Development and Assistance Act
of 1954 (7 U.S.C. 1736c) is repealed.
SEC. 219. INDEPENDENT EVALUATION OF PROGRAMS.
Section 410 of the Agricultural Trade Development and Assistance Act
of 1954 (7 U.S.C. 1736d) is repealed.
[[Page 110 STAT. 958]]
SEC. 220. AUTHORIZATION OF APPROPRIATIONS.
Section 412 of the Agricultural Trade Development and Assistance Act
of 1954 (7 U.S.C. 1736f) is amended--
(1) by striking subsections (b) and (c) and inserting the
following:
``(b) Transfer of Funds.--
``(1) In general.--Except as provided in paragraph (2) and
notwithstanding any other provision of law, the President may
direct that up to 15 percent of the funds available for any
fiscal year for carrying out any title of this Act be used to
carry out any other title of this Act.
``(2) Title iii funds.--The President may direct that up to
50 percent of the funds available for any fiscal year for
carrying out title III be used to carry out title II.''; and
(2) by redesignating subsections (d) and (e) as subsections
(c) and (d), respectively.
SEC. 221. COORDINATION OF FOREIGN ASSISTANCE PROGRAMS.
Section 413 of the Agricultural Trade Development and Assistance Act
of 1954 (7 U.S.C. 1736g) is amended by striking ``this Act'' each place
it appears and inserting ``title III''.
SEC. 222. MICRONUTRIENT FORTIFICATION PILOT PROGRAM.
Title IV of the Agricultural Trade Development and Assistance Act of
1954 (7 U.S.C. 1731 et seq.) is amended by adding at the end the
following:
``SEC. 415. <<NOTE: Establishment. Developing countries. 7 USC 1736g-
2.>> MICRONUTRIENT FORTIFICATION PILOT PROGRAM.
``(a) In General.--Subject to the availability of practical
technology and to cost effectiveness, not later than September 30, 1997,
the Secretary, in consultation with the Administrator, shall establish a
micronutrient fortification pilot program under this Act. The purpose of
the program shall be to--
``(1) assist developing countries in correcting
micronutrient dietary deficiencies among segments of the
populations of the countries; and
``(2) encourage the development of technologies for the
fortification of whole grains and other commodities that are
readily transferable to developing countries.
``(b) Selection of Participating Countries.--From among the
countries eligible for assistance under this Act, the Secretary may
select not more than 5 developing countries to participate in the pilot
program.
``(c) Fortification.--Under the pilot program, whole grains and
other commodities made available to a developing country selected to
participate in the pilot program may be fortified with 1 or more
micronutrients (including vitamin A, iron, and iodine) with respect to
which a substantial portion of the population in the country is
deficient. The commodity may be fortified in the United States or in the
developing country.
``(d) Termination of Authority.--The authority to carry out the
pilot program established under this section shall terminate on
September 30, 2002.''.
SEC. 223. USE OF CERTAIN LOCAL CURRENCY.
Title IV of the Agricultural Trade Development and Assistance Act of
1954 (7 U.S.C. 1731 et seq.) (as amended by section 222) is amended by
adding at the end the following:
[[Page 110 STAT. 959]]
``SEC. 416. <<NOTE: 7 USC 1736g-3.>> USE OF CERTAIN LOCAL CURRENCY.
``Local currency payments received by the United States pursuant to
agreements entered into under title I (as in effect on November 27,
1990) may be utilized by the Secretary in accordance with section 108
(as in effect on November 27, 1990).''.
SEC. 224. FARMER-TO-FARMER PROGRAM.
Section 501 of the Agricultural Trade Development and Assistance Act
of 1954 (7 U.S.C. 1737) is amended--
(1) in subsection (a), by striking paragraph (6) and
inserting the following:
``(6) to the extent that local currencies can be used to
meet the costs of a program established under this section,
augment funds of the United States that are available for such a
program through the use of foreign currencies that accrue from
the sale of agricultural commodities under this Act, and local
currencies generated from other types of foreign assistance
activities, within the country where the program is being
conducted.''; and
(2) in subsection (c)--
(A) by striking ``0.2'' and inserting ``0.4'';
(B) by striking ``1991 through 1995'' and inserting
``1996 through 2002''; and
(C) by striking ``0.1'' and inserting ``0.2''.
SEC. 225. FOOD SECURITY COMMODITY RESERVE.
(a) In General.--Title III of the Agricultural Act of 1980 (7 U.S.C.
1736f-1 et seq.) is amended to read as follows:
``TITLE III <<NOTE: Food Security Commodity Reserve Act of 1996.>> --
FOOD SECURITY COMMODITY RESERVE
``SEC. 301. <<NOTE: 7 USC 1736f-1 note.>> SHORT TITLE.
``This title may be cited as the `Food Security Commodity Reserve
Act of 1996'.
``SEC. 302. <<NOTE: 7 USC 1736f-1.>> ESTABLISHMENT OF COMMODITY RESERVE.
``(a) In General.--To provide for a reserve solely to meet emergency
humanitarian food needs in developing countries, the Secretary of
Agriculture (referred to in this title as the `Secretary') shall
establish a reserve stock of wheat, rice, corn, or sorghum, or any
combination of the commodities, totaling not more than 4,000,000 metric
tons for use as described in subsection (c).
``(b) Commodities in Reserve.--
``(1) In general.--The reserve established under this
section shall consist of--
``(A) wheat in the reserve established under the
Food Security Wheat Reserve Act of 1980 as of the date
of enactment of the Federal Agriculture Improvement and
Reform Act of 1996;
``(B) wheat, rice, corn, and sorghum (referred to in
this section as `eligible commodities') acquired in
accordance with paragraph (2) to replenish eligible
commodities released from the reserve, including wheat
to replenish wheat released from the reserve established
under the Food Security Wheat Reserve Act of 1980 but
not replen
[[Page 110 STAT. 960]]
ished as of the date of enactment of the Federal
Agriculture Improvement and Reform Act of 1996; and
``(C) such rice, corn, and sorghum as the Secretary
may, at such time and in such manner as the Secretary
determines appropriate, acquire as a result of
exchanging an equivalent value of wheat in the reserve
established under this section.
``(2) Replenishment of reserve.--
``(A) In general.--Subject to subsection (h),
commodities of equivalent value to eligible commodities
in the reserve established under this section may be
acquired--
``(i) through purchases--
``(I) from producers; or
``(II) in the market, if the
Secretary determines that the purchases
will not unduly disrupt the market; or
``(ii) by designation by the Secretary of
stocks of eligible commodities of the Commodity
Credit Corporation.
``(B) Funds.--Any use of funds to acquire eligible
commodities through purchases from producers or in the
market to replenish the reserve must be authorized in an
appropriations Act.
``(c) Release of Eligible Commodities.--
``(1) Emergency assistance.--
``(A) In general.--Notwithstanding paragraph (2), to
meet unanticipated need, the Secretary may release
eligible commodities in any fiscal year, without regard
to the availability of domestic supply of the
commodities, to provide emergency assistance to
developing countries under title II of the Agricultural
Trade Development and Assistance Act of 1954 (7 U.S.C.
1721 et seq.).
``(B) Release for emergency assistance.--If the
eligible commodities needed to meet unanticipated need
cannot be made available in a timely manner under normal
means for obtaining eligible commodities for food
assistance because of unanticipated need for emergency
assistance as provided under section 202(a) of the
Agricultural Trade Development and Assistance Act of
1954 (7 U.S.C. 1722(a)), the Secretary may in any fiscal
year release from the reserve--
``(i) up to 500,000 metric tons of wheat or
the equivalent value of eligible commodities other
than wheat; and
``(ii) up to 500,000 metric tons of any
eligible commodities under this paragraph that
could have been released but were not released in
prior fiscal years.
``(C) Waiver of minimum tonnage requirements.--
Nothing in this paragraph shall require a waiver under
section 204(a)(3) of the Agricultural Trade Development
and Assistance Act of 1954 (7 U.S.C. 1724(a)(3)) as a
prerequisite for the release of eligible commodities
under this paragraph.
``(2) Emergency food assistance.--Notwithstanding any other
provision of law, eligible commodities designated or acquired
for the reserve established under this section may
[[Page 110 STAT. 961]]
be released by the Secretary to provide, on a donation or sale
basis, emergency food assistance to developing countries at such
time as the domestic supply of the eligible commodities is so
limited that quantities of the eligible commodities cannot be
made available for disposition under the Agricultural Trade
Development and Assistance Act of 1954 (7 U.S.C. 1691 et seq.)
(other than disposition for urgent humanitarian purposes under
section 401 of the Act (7 U.S.C. 1731)).
``(3) Processing of eligible commodities.--Eligible
commodities that are released from the reserve established under
this section may be processed in the United States and shipped
to a developing country when conditions in the recipient country
require processing.
``(4) Exchange.--The Secretary may exchange an eligible
commodity for another United States commodity of equal value,
including powdered milk, pulses, and vegetable oil.
``(5) Use of normal commercial practices.--To the maximum
extent practicable consistent with the fulfillment of the
purposes of this section and the effective and efficient
administration of this section, the Secretary shall use the
usual and customary channels, facilities, arrangements, and
practices of trade and commerce to carry out this subsection.
``(d) Management of Eligible Commodities.--The Secretary shall
provide--
``(1) for the management of eligible commodities in the
reserve established under this section as to location and
quality of eligible commodities needed to meet emergency
situations; and
``(2) for the periodic rotation or replacement of stocks of
eligible commodities in the reserve to avoid spoilage and
deterioration of the commodities.
``(e) Treatment of Reserve Under Other Law.--Eligible commodities in
the reserve established under this section shall not be--
``(1) considered a part of the total domestic supply
(including carryover) for the purpose of subsection (c) or for
the purpose of administering the Agricultural Trade Development
and Assistance Act of 1954 (7 U.S.C. 1691 et seq.); and
``(2) subject to any quantitative limitation on exports that
may be imposed under section 7 of the Export Administration Act
of 1979 (50 U.S.C. App. 2406).
``(f) Use of Commodity Credit Corporation.--
``(1) In general.--Subject to the limitations provided in
this section, the funds, facilities, and authorities of the
Commodity Credit Corporation shall be used by the Secretary in
carrying out this section, except that any restriction
applicable to the acquisition, storage, or disposition of
eligible commodities owned or controlled by the Commodity Credit
Corporation shall not apply.
``(2) Reimbursement.--
``(A) In general.--The Commodity Credit Corporation
shall be reimbursed for the release of eligible
commodities from funds made available to carry out the
Agricultural Trade Development and Assistance Act of
1954 (7 U.S.C. 1691 et seq.).
``(B) Basis for reimbursement.--The reimbursement
shall be made on the basis of the lesser of--
[[Page 110 STAT. 962]]
``(i) the actual costs incurred by the
Commodity Credit Corporation with respect to the
eligible commodity; or
``(ii) the export market price of the eligible
commodity (as determined by the Secretary) as of
the time the eligible commodity is released from
the reserve.
``(C) Source of funds.--The reimbursement may be
made from funds appropriated for subsequent fiscal
years.
``(g) Finality of Determination.--Any determination by the Secretary
under this section shall be final.
``(h) Termination of Authority.--
``(1) In general.--The authority to replenish stocks of
eligible commodities to maintain the reserve established under
this section shall terminate on September 30, 2002.
``(2) Disposal of eligible commodities.--Eligible
commodities remaining in the reserve after September 30, 2002,
shall be disposed of by release for use in providing for
emergency humanitarian food needs in developing countries as
provided in this section.''.
(b) Conforming Amendment.--Section 208(d) of the Agricultural Trade
Suspension Adjustment Act of 1980 (7 U.S.C. 4001(d)) is amended by
striking paragraph (2) and inserting the following:
``(2) Applicability of certain provisions.--Subsections (c),
(d), (e), and (f)(2) of section 302 of the Food Security
Commodity Reserve Act of 1996 shall apply to commodities in any
reserve established under paragraph (1), except that the
references to `eligible commodities' in the subsections shall be
deemed to be references to `agricultural commodities'.''.
SEC. 226. PROTEIN BYPRODUCTS DERIVED FROM ALCOHOL FUEL PRODUCTION.
Section 1208 of the Agriculture and Food Act of 1981 (7 U.S.C.
1736n) is repealed.
SEC. 227. FOOD FOR PROGRESS PROGRAM.
The Food for Progress Act of 1985 (7 U.S.C. 1736o) is
amended--
(1) in subsection (b)--
(A) in paragraph (1)--
(i) by striking ``(b)(1)'' and inserting
``(b)''; and
(ii) in the first sentence, by inserting
``intergovernmental organizations,'' after
``cooperatives,''; and
(B) by striking paragraph (2);
(2) in subsection (e)(4), by striking ``203'' and inserting
``406'';
(3) in subsection (f)--
(A) in paragraph (1)(B), by striking ``in the case
of the independent states of the former Soviet Union,'';
(B) by striking paragraph (2);
(C) in paragraph (4), by inserting ``for each of
fiscal years 1996 through 2002'' after ``may be used'';
and
(D) by redesignating paragraphs (3) through (5) as
paragraphs (2) through (4), respectively;
(4) in subsection (g), by striking ``1995'' and inserting
``2002'';
(5) in subsection (j), by striking ``shall'' and inserting
``may'';
(6) in subsection (k), by striking ``1995'' and inserting
``2002'';
[[Page 110 STAT. 963]]
(7) in subsection (l)(1)--
(A) by striking ``1991 through 1995'' and inserting
``1996 through 2002''; and
(B) by inserting ``, and to provide technical
assistance for monetization programs,'' after
``monitoring of food assistance programs''; and
(8) in subsection (m)--
(A) by striking ``with respect to the independent
states of the former Soviet Union'';
(B) by striking ``private voluntary organizations
and cooperatives'' each place it appears and inserting
``agricultural trade organizations, intergovernmental
organizations, private voluntary organizations, and
cooperatives''; and
(C) in paragraph (2), by striking ``in the
independent states''.
SEC. 228. USE OF FOREIGN CURRENCY PROCEEDS FROM EXPORT SALES FINANCING.
Section 402 of the Mutual Security Act of 1954 (22 U.S.C. 1922) is
repealed.
SEC. 229. STIMULATION OF FOREIGN PRODUCTION.
Section 7 of the Act of December 30, 1947 (61 Stat. 947, chapter
526; 50 U.S.C. App. 1917), is repealed.
Subtitle B--Amendments to Agricultural Trade Act of 1978
SEC. 241. AGRICULTURAL EXPORT PROMOTION STRATEGY.
(a) In General.--Section 103 of the Agricultural Trade Act of 1978
(7 U.S.C. 5603) is amended to read as follows:
``SEC. 103. AGRICULTURAL EXPORT PROMOTION STRATEGY.
``(a) In General.--The Secretary shall develop a strategy for
implementing Federal agricultural export promotion programs that takes
into account the new market opportunities for agricultural products,
including opportunities that result from--
``(1) the North American Free Trade Agreement and the
Uruguay Round Agreements;
``(2) any accession to membership in the World Trade
Organization;
``(3) the continued economic growth in the Pacific Rim; and
``(4) other developments.
``(b) Purpose of Strategy.--The strategy developed under subsection
(a) shall encourage the maintenance, development, and expansion of
export markets for United States agricultural commodities and related
products, including high-value and value-added products.
``(c) Goals of Strategy.--The strategy developed under subsection
(a) shall have the following goals:
``(1) Increase the value of United States agricultural
exports each year.
``(2) Increase the value of United States agricultural
exports each year at a faster rate than the rate of increase in
the value of overall world export trade in agricultural
products.
[[Page 110 STAT. 964]]
``(3) Increase the value of United States high-value and
value-added agricultural exports each year.
``(4) Increase the value of United States high-value and
value-added agricultural exports each year at a faster rate than
the rate of increase in the value of overall world export trade
in high-value and value-added agricultural products.
``(5) Ensure that to the extent practicable--
``(A) all obligations undertaken in the Uruguay
Round Agreement on Agriculture that significantly
increase access for United States agricultural
commodities are implemented to the extent required by
the Uruguay Round Agreements; or
``(B) applicable United States laws are used to
secure United States rights under the Uruguay Round
Agreement on Agriculture.
``(d) Priority Markets.--
``(1) Identification of markets.--In developing the strategy
required under subsection (a), the Secretary shall annually
identify as priority markets--
``(A) those markets in which imports of agricultural
products show the greatest potential for increase; and
``(B) those markets in which, with the assistance of
Federal export promotion programs, exports of United
States agricultural products show the greatest potential
for increase.
``(2) <<NOTE: President.>> Identification of supporting
offices.--The President shall identify annually in the budget of
the United States Government submitted under section 1105 of
title 31, United States Code, each overseas office of the
Foreign Agricultural Service that provides assistance to United
States exporters in each of the priority markets identified
under paragraph (1).''.
(b) Sense of Congress.--It is the sense of Congress that--
(1) the Committee on Agriculture of the House of
Representatives and the Committee on Agriculture, Nutrition, and
Forestry of the Senate should conduct a thorough review of
agricultural export and food aid programs not later than
December 31, 1998; and
(2) the review should examine what changes, if any, need to
be made in the programs as a result of the effects of the
Agricultural Market Transition Act, the Uruguay Round
Agreements, changing world market conditions, and such other
factors as the committees consider appropriate.
(c) Elimination of Report.--
(1) In general.--Section 601 of the Agricultural Trade Act
of 1978 (7 U.S.C. 5711) is repealed.
(2) Conforming amendment.--The last sentence of section 603
of the Agricultural Trade Act of 1978 (7 U.S.C. 5713) is amended
by striking ``, in a consolidated report,'' and all that follows
through ``section 601'' and inserting ``or in a consolidated
report''.
SEC. 242. IMPLEMENTATION OF COMMITMENTS UNDER URUGUAY ROUND AGREEMENTS.
(a) In General.--Title I of the Agricultural Trade Act of 1978 (7
U.S.C. 5601 et seq.) is amended by adding at the end the following:
[[Page 110 STAT. 965]]
``SEC. 106. <<NOTE: Evaluation. 7 USC 5606.>> IMPLEMENTATION OF
COMMITMENTS UNDER URUGUAY ROUND AGREEMENTS.
``Not later than September 30 of each year, the Secretary shall
evaluate whether the obligations undertaken by foreign countries under
the Uruguay Round Agreement on Agriculture are being fully implemented.
If the Secretary has reason to believe (based on the evaluation) that
any foreign country, by not implementing the obligations of the country,
may be significantly constraining an opportunity for United States
agricultural exports, the Secretary shall--
``(1) submit the evaluation to the United States Trade
Representative; and
``(2) transmit a copy of the evaluation to the Committee on
Agriculture, and the Committee on Ways and Means, of the House
of Representatives and the Committee on Agriculture, Nutrition,
and Forestry, and the Committee on Finance, of the Senate.''.
(b) Monitoring Compliance With Sanitary and Phytosanitary
Measures.--Section 414 of the Agricultural Trade Act of 1978 (7 U.S.C.
5674) is amended by adding at the end the following:
``(c) Monitoring Compliance With Sanitary and Phytosanitary
Measures.--The Secretary shall monitor the compliance of World Trade
Organization member countries with the sanitary and phytosanitary
measures of the Agreement on Agriculture of the Uruguay Round of
Multilateral Trade Negotiations of the General Agreement on Tariffs and
Trade. If the Secretary has reason to believe that any country may have
failed to meet the commitment on sanitary and phytosanitary measures
under the Agreement in a manner that adversely impacts the exports of a
United States agricultural commodity, the Secretary shall--
``(1) provide such information to the United States Trade
Representative of the circumstances surrounding the matter
arising under this subsection; and
``(2) <<NOTE: Reports.>> with respect to any such
circumstances that the Secretary considers to have a continuing
adverse effect on United States agricultural exports, report to
the Committee on Agriculture, and the Committee on Ways and
Means, of the House of Representatives and the Committee on
Agriculture, Nutrition, and Forestry, and the Committee on
Finance, of the Senate--
``(A) that a country may have failed to meet the
sanitary and phytosanitary commitments; and
``(B) any notice given by the Secretary to the
United States Trade Representative.''.
SEC. 243. EXPORT CREDITS.
(a) Export Credit Guarantee Program.--Section 202 of the
Agricultural Trade Act of 1978 (7 U.S.C. 5622) is amended--
(1) in subsection (a)--
(A) by striking ``Guarantees.--The'' and inserting
the following: ``Guarantees.--
``(1) In general.--The''; and
(B) by adding at the end the following:
``(2) Supplier credits.--In carrying out this section, the
Commodity Credit Corporation may issue guarantees for the
[[Page 110 STAT. 966]]
repayment of credit made available for a period of not more than
180 days by a United States exporter to a buyer in a foreign
country.'';
(2) in subsection (f)--
(A) by striking ``(f) Restrictions.--The'' and
inserting the following:
``(f) Restrictions.--
``(1) In general.--The''; and
(B) by adding at the end the following:
``(2) Criteria for determination.--In making the
determination required under paragraph (1) with respect to
credit guarantees under subsection (b) for a country, the
Secretary may consider, in addition to financial, macroeconomic,
and monetary indicators--
``(A) whether an International Monetary Fund standby
agreement, Paris Club rescheduling plan, or other
economic restructuring plan is in place with respect to
the country;
``(B) whether the country is addressing issues such
as--
``(i) the convertibility of the currency of
the country;
``(ii) adequate legal protection for foreign
investments;
``(iii) the viability of the financial markets
of the country; and
``(iv) adequate legal protection for the
private property rights of citizens of the
country; or
``(C) any other factors that are relevant to the
ability of the country to service the debt of the
country.'';
(3) by striking subsection (h) and inserting the following:
``(h) United States Agricultural Commodities.--The Commodity Credit
Corporation shall finance or guarantee under this section only United
States agricultural commodities.'';
(4) in subsection (i)--
(A) by striking paragraph (1);
(B) by striking ``Institutions.--A financial'' and
inserting the following: ``Institutions.--
``(1) In general.--A financial'';
(C) by striking ``(2) is'' and inserting the
following:
``(A) is'';
(D) by striking ``(3) is'' and inserting the
following:
``(B) is''; and
(E) by adding at the end the following:
``(2) Third country banks.--The Commodity Credit Corporation
may guarantee under subsections (a) and (b) the repayment of
credit made available to finance an export sale irrespective of
whether the obligor is located in the country to which the
export sale is destined.''; and
(5) by striking subsection (k) and inserting the following:
``(k) Processed and High-Value Products.--
``(1) In general.--In issuing export credit guarantees under
this section, the Commodity Credit Corporation shall, subject to
paragraph (2), ensure that not less than 25 percent for each of
fiscal years 1996 and 1997, 30 percent for each of fiscal years
1998 and 1999, and 35 percent for each of fiscal years 2000,
2001, and 2002, of the total amount of credit guarantees issued
for a fiscal year is issued to promote the export of processed
or high-value agricultural products and
[[Page 110 STAT. 967]]
that the balance is issued to promote the export of bulk or raw
agricultural commodities.
``(2) Limitation.--The percentage requirement of paragraph
(1) shall apply for a fiscal year to the extent that a reduction
in the total amount of credit guarantees issued for the fiscal
year is not required to meet the percentage requirement.''.
(b) Funding Levels.--Section 211 of the Agricultural Trade Act of
1978 (7 U.S.C. 5641) is amended by striking subsection (b) and inserting
the following:
``(b) Export Credit Guarantee Programs.--
``(1) Export credit guarantees.--The Commodity Credit
Corporation shall make available for each of fiscal years 1996
through 2002 not less than $5,500,000,000 in credit guarantees
under subsections (a) and (b) of section 202.
``(2) Limitation on origination fee.--Notwithstanding any
other provision of law, the Secretary may not charge an
origination fee with respect to any credit guarantee transaction
under section 202(a) in excess of an amount equal to 1 percent
of the amount of credit to be guaranteed under the transaction,
except with respect to an export credit guarantee transaction
pursuant to section 1542(b) of the Food, Agriculture,
Conservation, and Trade Act of 1990 (Public Law 101-624; 7
U.S.C. 5622 note).''.
(c) Definition of United States Agricultural Commodity.--Section
102(7) of the Agricultural Trade Act of 1978 (7 U.S.C. 5602(7)) is
amended by striking subparagraphs (A) and (B) and inserting the
following:
``(A) an agricultural commodity or product entirely
produced in the United States; or
``(B) a product of an agricultural commodity--
``(i) 90 percent or more of the agricultural
components of which by weight, excluding packaging
and added water, is entirely produced in the
United States; and
``(ii) that the Secretary determines to be a
high value agricultural product.''.
(d) <<NOTE: 7 USC 5622 note.>> Regulations.--Not later than 180 days
after the date of enactment of this Act, the Secretary of Agriculture
shall issue regulations to carry out the amendments made by this
section.
SEC. 244. MARKET ACCESS PROGRAM.
(a) Change of Name.--
(1) In general.--Section 203 of the Agricultural Trade Act
of 1978 (7 U.S.C. 5623) is amended--
(A) in the section heading, by striking ``market
promotion program'' and inserting ``market access
program''; and
(B) by striking ``marketing promotion program'' each
place it appears and inserting ``market access
program''.
(2) Conforming amendments.--
(A) Section 1302 of the Omnibus Budget
Reconciliation Act of 1993 (Public Law 103-66; 7 U.S.C.
5623) is
amended--
(i) in the section heading, by striking
``market promotion program'' and inserting
``market access program''; and
[[Page 110 STAT. 968]]
(ii) in subsection (b), <<NOTE: 7 USC 5623
note.>> by striking ``market promotion program''
each place it appears and inserting ``market
access program''.
(B) Section 211(c) of the Agricultural Trade Act of
1978 (7 U.S.C. 5641(c)) is amended--
(i) in the subsection heading, by striking
``Marketing Promotion Programs'' and inserting
``Market Access Programs'';
(ii) by striking ``market promotion
activities'' and inserting ``market access
activities'';
(iii) in paragraph (1), by striking ``market
development program'' and inserting ``market
access program''; and
(iv) in paragraph (2), by striking ``marketing
promotion program'' and inserting ``market access
program''.
(b) Use of Funds.--Section 203(f) of the Agricultural Trade Act of
1978 (7 U.S.C. 5623(f)) is amended by adding at the end the following:
``(4) Use of funds.--Funds made available to carry out this
section--
``(A) shall not be used to provide direct assistance
to any foreign for-profit corporation for the
corporation's use in promoting foreign-produced
products;
``(B) shall not be used to provide direct assistance
to any for-profit corporation that is not recognized as
a small-business concern described in section 3(a) of
the Small Business Act (15 U.S.C. 632(a)), excluding--
``(i) a cooperative;
``(ii) an association described in the first
section of the Act entitled `An Act To authorize
association of producers of agricultural
products', approved February 18, 1922 (7 U.S.C.
291); and
``(iii) a nonprofit trade association; and
``(C) may be used by a United States trade
association, cooperative, or small business for
individual branded promotional activity related to a
United States branded product, if the beneficiaries of
the activity have provided funds for the activity in an
amount that is at least equivalent to the amount of
assistance provided under this section.''.
(c) Funding.-- <<NOTE: Effective date.>> Effective October 1, 1995,
section 211(c)(1) of the Agricultural Trade Act of 1978 (7 U.S.C.
5641(c)(1)) is
amended--
(1) by striking ``and'' after ``1991 through 1993,''; and
(2) by striking ``through 1997,'' and inserting ``through
1995, and not more than $90,000,000 for each of fiscal years
1996 through 2002,''.
SEC. 245. EXPORT ENHANCEMENT PROGRAM.
(a) In General.-- <<NOTE: Effective date.>> Effective October 1,
1995, section 301(e) of the Agricultural Trade Act of 1978 (7 U.S.C.
5651(e)) is amended by striking paragraph (1) and inserting the
following:
``(1) In general.--The Commodity Credit Corporation shall
make available to carry out the program established under this
section not more than--
``(A) $350,000,000 for fiscal year 1996;
``(B) $250,000,000 for fiscal year 1997;
[[Page 110 STAT. 969]]
``(C) $500,000,000 for fiscal year 1998;
``(D) $550,000,000 for fiscal year 1999;
``(E) $579,000,000 for fiscal year 2000;
``(F) $478,000,000 for fiscal year 2001; and
``(G) $478,000,000 for fiscal year 2002.''.
(b) Priority Funding for Intermediate Products.--Section 301 of the
Agricultural Trade Act of 1978 (7 U.S.C. 5651) is amended by adding at
the end the following:
``(h) Priority Funding for Intermediate Products.--
``(1) <<NOTE: Effective date.>> In general.--Effective
beginning in fiscal year 1996, and consistent, as determined by
the Secretary, with the obligations and reduction commitments
undertaken by the United States under the Uruguay Round
Agreements, the Secretary may make available not more than
$100,000,000 for each fiscal year under this section for the
sale of intermediate agricultural products in sufficient
quantities to attain the volume of export sales consistent with
the volume of intermediate agricultural products exported by the
United States during the Uruguay Round base period years of 1986
through 1990.
``(2) Additional assistance.--Notwithstanding paragraph (1),
if the export sale of any intermediate agricultural product
attains the volume of export sales consistent with the volume of
the intermediate agricultural product exported by the United
States during the Uruguay Round base period years of 1986
through 1990, the Secretary may make available additional
amounts under this section for the encouragement of export sales
of the intermediate agricultural product.''.
SEC. 246. ARRIVAL CERTIFICATION.
Section 401 of the Agricultural Trade Act of 1978 (7 U.S.C. 5661) is
amended by striking subsection (a) and inserting the following:
``(a) <<NOTE: Records.>> Arrival Certification.--With respect to a
commodity provided, or for which financing or a credit guarantee or
other assistance is made available, under a program authorized in
section 201, 202, or 301, the Commodity Credit Corporation shall require
the exporter of the commodity to maintain records of an official or
customary commercial nature or other documents as the Secretary may
require, and shall allow representatives of the Commodity Credit
Corporation access to the records or documents as needed, to verify the
arrival of the commodity in the country that is the intended destination
of the commodity.''.
SEC. 247. COMPLIANCE.
Section 402(a) of the Agricultural Trade Act of 1978 (7 U.S.C.
5662(a)) is amended--
(1) by striking paragraph (2); and
(2) by redesignating paragraph (3) as paragraph (2).
SEC. 248. REGULATIONS.
Section 404 of the Agricultural Trade Act of 1978 (7 U.S.C. 5664) is
repealed.
SEC. 249. TRADE COMPENSATION AND ASSISTANCE PROGRAMS.
Subtitle B of title IV of the Agricultural Trade Act of 1978 (7
U.S.C. 5671 et seq.) is amended by adding at the end the following:
[[Page 110 STAT. 970]]
``SEC. 417. <<NOTE: 7 USC 5677.>> TRADE COMPENSATION AND ASSISTANCE
PROGRAMS.
``(a) In General.--Except as provided in subsection (f),
notwithstanding any other provision of law, if, after the date of
enactment of this section, the President or any other member of the
executive branch causes exports from the United States to any country to
be unilaterally suspended for reasons of national security or foreign
policy, and if within 90 days after the date on which the suspension is
imposed on United States exports no other country with an agricultural
economic interest agrees to participate in the suspension, the Secretary
shall carry out a trade compensation assistance program in accordance
with this section (referred to in this section as a `program').
``(b) Compensation or Provision of Funds.--Under a program, the
Secretary shall, based on an evaluation by the Secretary of the method
most likely to produce the greatest compensatory benefit for producers
of the commodity involved in the suspension--
``(1) compensate producers of the commodity by making
payments available to producers, as provided by subsection
(c)(1); or
``(2) make available an amount of funds calculated under
subsection (c)(2), to promote agricultural exports or provide
agricultural commodities to developing countries under any
authorities available to the Secretary.
``(c) Determination of Amount of Compensation or Funds.--
``(1) Compensation.--If the Secretary makes payments
available to producers under subsection (b)(1), the amount of
the payment shall be determined by the Secretary based on the
Secretary's estimate of the loss suffered by producers of the
commodity involved due to any decrease in the price of the
commodity as a result of the suspension.
``(2) Determination of amount of funds.--For each fiscal
year of a program, the amount of funds made available under
subsection (b)(2) shall be equal to 90 percent of the average
annual value of United States agricultural exports to the
country with respect to which exports are suspended during the
most recent 3 years prior to the suspension for which data are
available.
``(d) Duration of Program.--For each suspension of exports for which
a program is implemented under this section, funds shall be made
available under subsection (b) for each fiscal year or part of a fiscal
year for which the suspension is in effect, but not to exceed 3 fiscal
years.
``(e) Commodity Credit Corporation.--The Secretary shall use funds
of the Commodity Credit Corporation to carry out this section.
``(f) Exception to Carrying Out a Program.--This section shall not
apply to any suspension of trade due to a war or armed hostility.
``(g) Partial Year Embargoes.--If the Secretary makes funds
available under subsection (b)(2), regardless of whether an embargo is
in effect for only part of a fiscal year, the full amount of funds as
calculated under subsection (c)(2) shall be made available under a
program for the fiscal year. If the Secretary determines that making the
required amount of funds available in a partial fiscal year is
impracticable, the Secretary may make all or part of the funds required
to be made available in the following fiscal year
[[Page 110 STAT. 971]]
(in addition to any funds otherwise required under a program to be made
available in the following fiscal year).
``(h) Short Supply Embargoes.--If the President or any other member
of the executive branch causes exports to be suspended based on a
determination of short supply, the Secretary shall carry out section
1002 of the Food and Agriculture Act of 1977 (7 U.S.C. 1310).''.
SEC. 250. FOREIGN AGRICULTURAL SERVICE.
Section 503 of the Agricultural Trade Act of 1978 (7 U.S.C. 5693) is
amended to read as follows:
``SEC. 503. DUTIES OF FOREIGN AGRICULTURAL SERVICE.
``The Service shall assist the Secretary in carrying out the
agricultural trade policy and international cooperation policy of the
United States by--
``(1) acquiring information pertaining to agricultural
trade;
``(2) carrying out market promotion and development
activities;
``(3) providing agricultural technical assistance and
training; and
``(4) carrying out the programs authorized under this Act,
the Agricultural Trade Development and Assistance Act of 1954 (7
U.S.C. 1691 et seq.), and other Acts.''.
SEC. 251. REPORTS.
The first sentence of section 603 of the Agricultural Trade Act of
1978 (7 U.S.C. 5713) is amended by striking ``The'' and inserting
``Subject to section 217 of the Department of Agriculture Reorganization
Act of 1994 (7 U.S.C. 6917), the''.
SEC. 252. FOREIGN MARKET DEVELOPMENT COOPERATOR PROGRAM.
The Agricultural Trade Act of 1978 (7 U.S.C. 5601 et seq.) is
amended by adding at the end the following:
``TITLE VII--FOREIGN MARKET DEVELOPMENT COOPERATOR PROGRAM
``SEC. 701. <<NOTE: 7 USC 5721.>> DEFINITION OF ELIGIBLE TRADE
ORGANIZATION.
``In this title, the term `eligible trade organization' means a
United States trade organization that--
``(1) promotes the export of 1 or more United States
agricultural commodities or products; and
``(2) does not have a business interest in or receive
remuneration from specific sales of agricultural commodities or
products.
``SEC. 702. <<NOTE: Establishment. 7 USC 5722.>> FOREIGN MARKET
DEVELOPMENT COOPERATOR PROGRAM.
``(a) In General.--The Secretary shall establish and, in cooperation
with eligible trade organizations, carry out a foreign market
development cooperator program to maintain and develop foreign markets
for United States agricultural commodities and products.
``(b) Administration.--Funds made available to carry out this title
shall be used only to provide--
``(1) cost-share assistance to an eligible trade
organization under a contract or agreement with the
organization; and
[[Page 110 STAT. 972]]
``(2) assistance for other costs that are necessary or
appropriate to carry out the foreign market development
cooperator program, including contingent liabilities that are
not otherwise funded.
``SEC. 703. <<NOTE: 7 USC 5723.>> AUTHORIZATION OF APPROPRIATIONS.
``There are authorized to be appropriated to carry out this title
such sums as may be necessary for each of fiscal years 1996 through
2002.''.
Subtitle C--Miscellaneous Agricultural Trade Provisions
SEC. 261. <<NOTE: 7 USC 5678.>> EDWARD R. MADIGAN UNITED STATES
AGRICULTURAL EXPORT EXCELLENCE AWARD.
(a) Findings.--Congress finds that--
(1) United States producers of agricultural products are
some of the most productive and efficient producers of
agricultural products in the world;
(2) continued growth and expansion of markets for United
States agricultural exports is crucial to the continued
development and economic well-being of rural areas of the United
States and the agricultural sector of the United States economy;
(3) in recent years, United States agricultural exports have
steadily increased, surpassing $54,000,000,000 in value in 1995;
(4) as United States agricultural producers move toward a
market-oriented system in which planting and other decisions by
producers are driven by national and international market
signals, developing new and expanding agricultural export
markets is vital to maintaining a vibrant and healthy
agricultural sector and rural economy; and
(5) a United States agricultural export excellence award
will increase United States agricultural exports by--
(A) identifying efforts of United States entities to
develop and expand markets for United States
agricultural exports through the development of new
products and services and through the use of innovative
marketing techniques;
(B) recognizing achievements of those who have
exhibited or supported entrepreneurial efforts to expand
and create new markets for United States agricultural
exports or increase the volume or value of United States
agricultural exports; and
(C) disseminating information on successful methods
used to develop and expand markets for United States
agricultural exports.
(b) Establishment.--There is established the Edward R. Madigan
United States Agricultural Export Excellence Award, which shall be
evidenced by a medal bearing the inscription ``Edward R. Madigan United
States Agricultural Export Excellence Award''. The medal shall be of
such design and materials and bear such additional inscriptions as the
Secretary of Agriculture (referred to in this section as the
``Secretary'') may prescribe.
(c) <<NOTE: President.>> Selection of Recipient.--The President or
the Secretary (on the basis of recommendations received from the board
established under subsection (h)) shall periodically provide the award
[[Page 110 STAT. 973]]
to companies and other entities that in the judgment of the President or
the Secretary substantially encourage entrepreneurial efforts in the
food and agriculture sector for advancing United States agricultural
exports.
(d) <<NOTE: President.>> Presentation of Award.--The presentation of
the award shall be made by the President or the Secretary with such
ceremonies as the President or the Secretary considers proper.
(e) Publication of Award.--An entity to which an award is made under
this section may publicize the receipt of the award by the entity and
use the award in advertising of the entity.
(f) Categories for Which Award May Be Given.--Separate awards shall
be made to qualifying entities in each of the following categories:
(1) Development of new products or services for agricultural
export markets.
(2) Development of new agricultural export markets.
(3) Creative marketing of products or services in
agricultural export markets.
(g) Criteria for Qualification.--An entity may qualify for an award
under this section only if the entity--
(1)(A) applies to the board established under subsection (h)
in writing for the award; or
(B) is recommended for the award by a Governor of a State;
(2)(A) has exhibited significant entrepreneurial effort to
create new markets for United States agricultural exports or
increase United States agricultural exports; or
(B) has provided significant assistance to others in an
effort to create new markets for United States agricultural
exports or increase United States agricultural exports;
(3) has not received another award in the same category
under subsection (f) during the preceding 5-year period; and
(4) meets such other requirements and specifications as the
Secretary determines are appropriate to achieve the objectives
of this section.
(h) Board.--
(1) Selection.--The Secretary shall appoint a board of
evaluators, consisting of at least 5 individuals from the
private sector selected for their knowledge and experience in
exporting United States agricultural products.
(2) Meetings.--The board shall meet at least once annually
to review and evaluate all applicants and entities recommended
by States under subsection (g)(1).
(3) <<NOTE: Reports.>> Recommendations of board.--The board
shall report its recommendations concerning the making of the
award to the Secretary.
(4) Term.--Each member of the board may serve a term of not
to exceed 3 years.
(i) Funding.--The Secretary may seek and accept gifts from public
and private sources to carry out this section.
SEC. 262. REPORTING REQUIREMENTS RELATING TO TOBACCO.
Section 214 of the Tobacco Adjustment Act of 1983 (7 U.S.C. 509) is
repealed.
[[Page 110 STAT. 974]]
SEC. 263. TRIGGERED EXPORT ENHANCEMENT.
(a) Readjustment of Support Levels.--Section 1302 of the Omnibus
Budget Reconciliation Act of 1990 (Public Law 101-508; 7 U.S.C. 1421
note) is repealed.
(b) Triggered Marketing Loans and Export Enhancement.--Section 4301
of the Omnibus Trade and Competitiveness Act of 1988 (Public Law 100-
418; 7 U.S.C. 1446 note) is repealed.
(c) <<NOTE: 7 USC 1421 note.>> Effective Date.--The amendments made
by this section shall be effective beginning with the 1996 crops of
wheat, feed grains, upland cotton, and rice.
SEC. 264. DISPOSITION OF COMMODITIES TO PREVENT WASTE.
Section 416 of the Agricultural Act of 1949 (7 U.S.C. 1431) is
amended--
(1) in subsection (b)--
(A) in paragraph (7)--
(i) in subparagraph (D)(iv), by striking ``one
year of acquisition'' and all that follows through
the period at the end and inserting the following:
``a reasonable length of time, as determined by
the Secretary, except that the Secretary may
permit the use of proceeds in a country other than
the country of origin--
``(I) as necessary to expedite the transportation of
commodities and products furnished under this
subsection; or
``(II) if the proceeds are generated in a currency
generally accepted in the other country.''; and
(ii) by striking the sentence following
subparagraph (F) and inserting the following:
``The Secretary may approve the use of proceeds or
services realized from the sale or barter of a
commodity furnished under this subsection by a
nonprofit voluntary agency, cooperative, or
intergovernmental agency or organization to meet
administrative expenses incurred in connection
with activities undertaken under this
subsection.'';
(B) in paragraph (8), by striking subparagraph (C);
and
(C) by striking paragraphs (10), (11), and (12); and
(2) by striking subsection (c).
SEC. 265. DEBT-FOR-HEALTH-AND-PROTECTION SWAP.
(a) In General.--Section 1517 of the Food, Agriculture,
Conservation, and Trade Act of 1990 (7 U.S.C. 1706) is repealed.
(b) Technical Amendment.--Subsection (e)(3) of the Food for Progress
Act of 1985 (7 U.S.C. 1736o(e)(3)) is amended by striking ``section
106'' and inserting ``section 103''.
SEC. 266. POLICY ON EXPANSION OF INTERNATIONAL MARKETS.
Section 1207 of the Agriculture and Food Act of 1981 (7 U.S.C.
1736m) is repealed.
SEC. 267. POLICY ON MAINTENANCE AND DEVELOPMENT OF EXPORT MARKETS.
Section 1121 of the Food Security Act of 1985 (7 U.S.C. 1736p) is
amended--
(1) by striking subsection (a); and
(2) in subsection (b)--
[[Page 110 STAT. 975]]
(A) by striking ``(b)''; and
(B) by striking paragraphs (1) through (4) and
inserting the following:
``(1) be the premier supplier of agricultural and food
products to world markets and expand exports of high value
products;
``(2) support the principle of free trade and the promotion
of fair trade in agricultural commodities and products;
``(3) cooperate fully in all efforts to negotiate with
foreign countries further reductions in tariff and nontariff
barriers to trade, including sanitary and phytosanitary measures
and trade-distorting subsidies;
``(4) aggressively counter unfair foreign trade practices as
a means of encouraging fairer trade;''.
SEC. 268. POLICY ON TRADE LIBERALIZATION.
Section 1122 of the Food Security Act of 1985 (7 U.S.C. 1736q) is
repealed.
SEC. 269. AGRICULTURAL TRADE NEGOTIATIONS.
Section 1123 of the Food Security Act of 1985 (7 U.S.C. 1736r) is
amended to read as follows:
``SEC. 1123. TRADE NEGOTIATIONS POLICY.
``(a) Findings.--Congress finds that--
``(1) on a level playing field, United States producers are
the most competitive suppliers of agricultural products in the
world;
``(2) exports of United States agricultural products
accounted for $54,000,000,000 in 1995, contributing a net
$24,000,000,000 to the merchandise trade balance of the United
States and supporting approximately 1,000,000 jobs;
``(3) increased agricultural exports are critical to the
future of the farm, rural, and overall United States economy,
but the opportunities for increased agricultural exports are
limited by the unfair subsidies of the competitors of the United
States, and a variety of tariff and nontariff barriers to highly
competitive United States agricultural products;
``(4) international negotiations can play a key role in
breaking down barriers to United States agricultural exports;
``(5) the Uruguay Round Agreement on Agriculture made
significant progress in the attainment of increased market
access opportunities for United States exports of agricultural
products, for the first time--
``(A) restraining foreign trade-distorting domestic
support and export subsidy programs; and
``(B) developing common rules for the application of
sanitary and phytosanitary restrictions;
that should result in increased exports of United States
agricultural products, jobs, and income growth in the United
States;
``(6) the Uruguay Round Agreement on Agriculture did not
succeed in completely eliminating trade distorting domestic
support and export subsidies by--
``(A) allowing the European Union to continue
unreasonable levels of spending on export subsidies; and
``(B) failing to discipline monopolistic state
trading entities, such as the Canadian Wheat Board, that
use
[[Page 110 STAT. 976]]
nontransparent and discriminatory pricing as a hidden de
facto export subsidy;
``(7) during the period 1996 through 2002, there will be
several opportunities for the United States to negotiate fairer
trade in agricultural products, including further negotiations
under the World Trade Organization, and steps toward possible
free trade agreements of the Americas and Asian-Pacific Economic
Cooperation (APEC); and
``(8) the United States should aggressively use these
opportunities to achieve more open and fair opportunities for
trade in agricultural products.
``(b) Goals of the United States in Agricultural Trade
Negotiations.--The objectives of the United States with respect to
future negotiations on agricultural trade include--
``(1) increasing opportunities for United States exports of
agricultural products by eliminating tariff and nontariff
barriers to trade;
``(2) leveling the playing field for United States producers
of agricultural products by limiting per unit domestic
production supports to levels that are no greater than those
available in the United States;
``(3) ending the practice of export dumping by eliminating
all trade distorting export subsidies and disciplining state
trading entities so that they do not (except in cases of bona
fide food aid) sell in foreign markets at prices below domestic
market prices or prices below their full costs of acquiring and
delivering agricultural products to the foreign markets; and
``(4) encouraging government policies that avoid price-
depressing surpluses.''.
SEC. 270. POLICY ON UNFAIR TRADE PRACTICES.
Section 1164 of the Food Security Act of 1985 (Public Law 99-198; 99
Stat. 1499) is repealed.
SEC. 271. AGRICULTURAL AID AND TRADE MISSIONS.
(a) In General.--The Agricultural Aid and Trade Missions Act (7
U.S.C. 1736bb et seq.) is repealed.
(b) Conforming Amendment.--Section 7 of Public Law 100-277 (7 U.S.C.
1736bb note) is repealed.
SEC. 272. ANNUAL REPORTS BY AGRICULTURAL ATTACHES.
Section 108(b)(1)(B) of the Agricultural Act of 1954 (7 U.S.C.
1748(b)(1)(B)) is amended by striking ``including fruits, vegetables,
legumes, popcorn and ducks''.
SEC. 273. WORLD LIVESTOCK MARKET PRICE INFORMATION.
Section 1545 of the Food, Agriculture, Conservation, and Trade Act
of 1990 (Public Law 101-624; 7 U.S.C. 1761 note) is repealed.
SEC. 274. ORDERLY LIQUIDATION OF STOCKS.
Sections 201 and 207 of the Agricultural Act of 1956 (7 U.S.C. 1851
and 1857) are repealed.
SEC. 275. SALES OF EXTRA LONG STAPLE COTTON.
Section 202 of the Agricultural Act of 1956 (7 U.S.C. 1852) is
repealed.
[[Page 110 STAT. 977]]
SEC. 276. REGULATIONS.
Section 707 of the Freedom for Russia and Emerging Eurasian
Democracies and Open Markets Support Act of 1992 (Public Law 102-511; 7
U.S.C. 5621 note) is amended by striking subsection (d).
SEC. 277. EMERGING MARKETS.
(a) Promotion of Agricultural Exports to Emerging Markets.--
(1) Emerging markets.--Section 1542 of the Food,
Agriculture, Conservation, and Trade Act of 1990 (Public Law
101-624; 7 U.S.C. 5622 note) is amended--
(A) in the section heading, by striking ``emerging
democracies'' and inserting ``emerging markets'';
(B) by striking ``emerging democracies'' each place
it appears in subsections (b), (d), and (e) and
inserting ``emerging markets'';
(C) in subsection (c), by striking ``emerging
democracy'' each place it appears and inserting
``emerging market''; and
(D) by striking subsection (f) and inserting the
following:
``(f) Emerging Market.--In this section and section 1543, the term
`emerging market' means any country that the Secretary determines--
``(1) is taking steps toward a market-oriented economy
through the food, agriculture, or rural business sectors of the
economy of the country; and
``(2) has the potential to provide a viable and significant
market for United States agricultural commodities or products of
United States agricultural commodities.''.
(2) Funding.--Section 1542 of the Food, Agriculture,
Conservation, and Trade Act of 1990 is amended by striking
subsection (a) and inserting the following:
``(a) Funding.--The Commodity Credit Corporation shall make
available for fiscal years 1996 through 2002 not less than
$1,000,000,000 of direct credits or export credit guarantees for exports
to emerging markets under section 201 or 202 of the Agricultural Trade
Act of 1978 (7 U.S.C. 5621 and 5622), in addition to the amounts
acquired or authorized under section 211 of the Act (7 U.S.C. 5641) for
the program.''.
(3) Agricultural fellowship program.--Section 1542 of the
Food, Agriculture, Conservation, and Trade Act of 1990 is
amended--
(A) in subsection (b), by striking the last sentence
and inserting the following: ``The Commodity Credit
Corporation shall give priority under this subsection
to--
``(A) projects that encourage the privatization of the
agricultural sector or that benefit private farms or
cooperatives in emerging markets; and
``(B) projects for which nongovernmental persons agree to
assume a relatively larger share of the costs.''; and
(B) in subsection (d)--
(i) in the matter preceding paragraph (1), by
striking ``the Soviet Union'' and inserting
``emerging markets'';
(ii) in paragraph (1)--
[[Page 110 STAT. 978]]
(I) in subparagraph (A)(i)--
(aa) by striking ``1995''
and inserting ``2002''; and
(bb) by striking ``those
systems, and identify'' and
inserting ``the systems,
including potential reductions
in trade barriers, and identify
and carry out'';
(II) in subparagraph (B), by
striking ``shall'' and inserting
``may'';
(III) in subparagraph (D), by
inserting ``(including the establishment
of extension services)'' after
``technical assistance'';
(IV) by striking subparagraph (F);
and
(V) by redesignating subparagraphs
(G), (H), and (I) as subparagraphs (F),
(G), and (H), respectively;
(iii) in paragraph (2)--
(I) by striking ``the Soviet Union''
each place it appears and inserting
``emerging markets'';
(II) in subparagraph (A), by
striking ``a free market food production
and distribution system'' and inserting
``free market food production and
distribution systems'';
(III) in subparagraph (B)--
(aa) in clause (i), by
striking ``Government'' and
inserting ``governments'';
(bb) in clause (iii)(II), by
striking ``and'' at the end;
(cc) in clause (iii)(III),
by striking the period at the
end and inserting ``; and''; and
(dd) by adding at the end of
clause (iii) the following:
``(IV) to provide for the exchange
of administrators and faculty members
from agricultural and other institutions
to strengthen and revise educational
programs in agricultural economics,
agribusiness, and agrarian law, to
support change towards a free market
economy in emerging markets.'';
(IV) by striking subparagraph (D);
and
(V) by redesignating subparagraph
(E) as subparagraph (D); and
(iv) by striking paragraph (3).
(4) United states agricultural commodity.--Subsections (b)
and (c) of section 1542 of the Food, Agriculture, Conservation,
and Trade Act of 1990 <<NOTE: 7 USC 5622 note.>> are amended by
striking ``section 101(6)'' each place it appears and inserting
``section 102(7)''.
(5) Report.--The first sentence of section 1542(e)(2) of the
Food, Agriculture, Conservation, and Trade Act of 1990 is
amended by striking ``Not'' and inserting ``Subject to section
217 of the Department of Agriculture Reorganization Act of 1994
(7 U.S.C. 6917), not''.
(b) Agricultural Fellowship Program for Middle Income Countries,
Emerging Democracies, and Emerging Markets.--Section 1543 of the Food,
Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 3293) is
amended--
[[Page 110 STAT. 979]]
(1) in the section heading, by striking ``middle income
countries and emerging democracies'' and inserting ``middle
income countries, emerging democracies, and emerging markets'';
(2) in subsection (b), by adding at the end the following:
``(5) Emerging market.--Any emerging market, as defined in
section 1542(f).''; and
(3) in subsection (c)(1), by striking ``food needs'' and
inserting ``food and fiber needs''.
(c) Conforming Amendments.--
(1) Section 501 of the Agricultural Trade Development and
Assistance Act of 1954 (7 U.S.C. 1737) is amended--
(A) in subsection (a), by striking ``emerging
democracies'' and inserting ``emerging markets''; and
(B) in subsection (b), by striking paragraph (1) and
inserting the following:
``(1) Emerging market.--The term `emerging market' means any
country that the Secretary determines--
``(A) is taking steps toward a market-oriented
economy through the food, agriculture, or rural business
sectors of the economy of the country; and
``(B) has the potential to provide a viable and
significant market for United States agricultural
commodities or products of United States agricultural
commodities.''.
(2) Section 201(d)(1)(C)(ii) of the Agricultural Trade Act
of 1978 (7 U.S.C. 5621(d)(1)(C)(ii)) is amended by striking
``emerging democracies'' and inserting ``emerging markets''.
(3) Section 202(d)(3)(B) of the Agricultural Trade Act of
1978 (7 U.S.C. 5622(d)(3)(B)) is amended by striking ``emerging
democracies'' and inserting ``emerging markets''.
SEC. 278. REIMBURSEMENT FOR OVERHEAD EXPENSES.
Section 1542(d)(1)(D) of the Food, Agriculture, Conservation, and
Trade Act of 1990 (Public Law 101-624; 7 U.S.C. 5622 note) is amended by
adding at the end the following: ``Notwithstanding any other provision
of law, the assistance shall include assistance for administrative and
overhead expenses of the International Cooperation and Development
Program Area of the Foreign Agriculture Service, to the extent that the
expenses were incurred pursuant to reimbursable agreements entered into
prior to September 30, 1993, the expenses do not exceed $2,000,000 per
year, and the expenses are not incurred for information technology
systems.''.
SEC. 279. LABELING OF DOMESTIC AND IMPORTED LAMB AND MUTTON.
Section 7 of the Federal Meat Inspection Act (21 U.S.C. 607) is
amended by adding at the end the following:
``(f) <<NOTE: Standards.>> Lamb and Mutton.--The Secretary,
consistent with United States international obligations, shall establish
standards for the labeling of sheep carcasses, parts of sheep carcasses,
sheepmeat, and sheepmeat food products.''.
SEC. 280. IMPORT ASSISTANCE FOR CBI BENEFICIARY COUNTRIES AND THE
PHILIPPINES.
Section 583 of Public Law 100-202 (101 Stat. 1329-182) is repealed.
[[Page 110 STAT. 980]]
SEC. 281. STUDIES, REPORTS, AND OTHER PROVISIONS.
(a) <<NOTE: 7 USC 624 note.>> In General.--Sections 1551 through
1555, section 1558, and section 1559 of subtitle E of title XV of the
Food, Agriculture, Conservation, and Trade Act of 1990 (Public Law 101-
624; 104 Stat. 3696) (as redesignated by section 1011(d) of the Federal
Reports Elimination and Sunset Act of 1995 (Public Law 104-66; 109 Stat.
709)) are repealed.
(b) Language Proficiency.--Section 1556 of the Food, Agriculture,
Conservation, and Trade Act of 1990 (Public Law 101-624; 7 U.S.C. 5694
note) is amended by striking subsection (c).
SEC. 282. SENSE OF CONGRESS CONCERNING MULTILATERAL DISCIPLINES ON
CREDIT GUARANTEES.
It is the sense of Congress that--
(1) in negotiations to establish multilateral disciplines on
agricultural export credits and credit guarantees, the United
States should not agree to any arrangement that is incompatible
with the provisions of United States law that authorize
agricultural export credits and credit guarantees;
(2) in the negotiations (which are held under the auspices
of the Organization for Economic Cooperation and Development),
the United States should not reach any agreement that fails to
impose disciplines on the practices of foreign government
trading entities such as the Australian Wheat Board, the
Canadian Wheat Board, the New Zealand Dairy Board, and the
Australian Dairy Board; and
(3) the disciplines should include greater openness in the
operations of the entities as long as the entities are
subsidized by the foreign government or have monopolies for
exports of a commodity that are sanctioned by the foreign
government.
SEC. 283. <<NOTE: 22 USC 288 note.>> INTERNATIONAL COTTON ADVISORY
COMMITTEE.
(a) <<NOTE: President.>> In General.--The President shall ensure
that the Government of the United States participates as a full member
of the International Cotton Advisory Committee.
(b) Representation by the Secretary.--The Secretary of Agriculture
shall represent the Government of the United States as a member of the
International Cotton Advisory Committee and shall delegate the primary
responsibility to represent the Government of the United States to
appropriately qualified individuals.
TITLE III--CONSERVATION
Subtitle A--Definitions
SEC. 301. DEFINITIONS APPLICABLE TO HIGHLY ERODIBLE CROPLAND
CONSERVATION.
(a) Conservation Plan and Conservation System.--Section 1201(a) of
the Food Security Act of 1985 (16 U.S.C. 3801(a)) is amended--
(1) by redesignating paragraphs (2) through (16) as
paragraphs (4) through (18), respectively; and
(2) by inserting after paragraph (1) the following:
``(2) Conservation plan.--The term `conservation plan' means
the document that--
``(A) applies to highly erodible cropland;
[[Page 110 STAT. 981]]
``(B) describes the conservation system applicable
to the highly erodible cropland and describes the
decisions of the person with respect to location, land
use, tillage systems, and conservation treatment
measures and schedule; and
``(C) is approved by the local soil conservation
district, in consultation with the local committees
established under section 8(b)(5) of the Soil
Conservation and Domestic Allotment Act (16 U.S.C.
590h(b)(5)) and the Secretary, or by the Secretary.
``(3) Conservation system.--The term `conservation system'
means a combination of 1 or more conservation measures or
management practices that--
``(A) are based on local resource conditions,
available conservation technology, and the standards and
guidelines contained in the Natural Resources
Conservation Service field office technical guides; and
``(B) are designed to achieve, in a cost effective
and technically practicable manner, a substantial
reduction in soil erosion or a substantial improvement
in soil conditions on a field or group of fields
containing highly erodible cropland when compared to the
level of erosion or soil conditions that existed before
the application of the conservation measures and
management practices.''.
(b) Field.--Section 1201(a) of the Food Security Act of <<NOTE: 16
USC 3801.>> 1985 is amended by striking paragraph (7) (as redesignated
by subsection (a)(1)) and inserting the following:
``(7) Field.--The term `field' means a part of a farm that
is separated from the balance of the farm by permanent
boundaries such as fences, roads, permanent waterways, or other
similar features. At the option of the owner or operator of the
farm, croplines may also be used to delineate a field if farming
practices make it probable that the croplines are not subject to
change. Any highly erodible land on which an agricultural
commodity is produced after December 23, 1985, and that is not
exempt under section 1212, shall be considered as part of the
field in which the land was included on December 23, 1985,
unless the owner and Secretary agree to modification of the
boundaries of the field to carry out this title.''.
(c) Highly Erodible Land.--Section 1201(a)(9) of the Food Security
Act of 1985 (as redesignated by subsection (a)(1)) is amended by adding
at the end the following:
``(C) <<NOTE: Federal Register,
publication.>> Equations.--Not later than 60 days after
the date of enactment of this subparagraph, the
Secretary shall publish in the Federal Register the
universal soil loss equation and wind erosion equation
used by the Department of Agriculture as of that date.
The Secretary may not change the equations after that
date except following notice and comment in a manner
consistent with section 553 of title 5, United States
Code.''.
(d) Conforming Amendments.--Section 1212 of the Food Security Act of
1985 (16 U.S.C. 3812) is amended--
(1) in the first sentence of subsection (a)(2), by striking
``that documents'' and all that follows through ``by the
Secretary'';
[[Page 110 STAT. 982]]
(2) in subsection (c)(3), by striking ``based on'' and all
that follows through ``and the Secretary,'' and inserting ``, in
which case,'';
(3) in subsection (e)(1)(A), by striking ``conservation
compliance plan'' and inserting ``conservation plan''; and
(4) in subsection (f)--
(A) in paragraph (1), by striking ``that documents''
and all that follows through ``under subsection (a)'';
(B) in paragraph (3), by striking ``prepared under
subsection (a)''; and
(C) in paragraph (4), by striking ``that documents''
and all that follows through ``subsection (a)''.
Subtitle B--Highly Erodible Land Conservation
SEC. 311. PROGRAM INELIGIBILITY.
<<NOTE: Effective date.>> Effective 90 days after the date of
enactment of this Act, section 1211 of the Food Security Act of 1985 (16
U.S.C. 3811) is amended--
(1) in the matter preceding paragraph (1), by striking
``following the date of enactment of this Act,'';
(2) in paragraph (1)--
(A) by striking subparagraph (A) and inserting the
following:
``(A) contract payments under a production
flexibility contract, marketing assistance loans, and
any type of price support or payment made available
under the Agricultural Market Transition Act, the
Commodity Credit Corporation Charter Act (15 U.S.C. 714
et seq.), or any other Act;'';
(B) by striking subparagraph (C);
(C) in subparagraph (D), by striking ``made under''
and all that follows through ``August 14, 1989'';
(D) in subparagraph (E), by striking ``Farmers Home
Administration'' and inserting ``Consolidated Farm
Service Agency''; and
(E) by redesignating subparagraphs (D) and (E) as
subparagraphs (C) and (D), respectively; and
(3) by striking paragraph (3) and inserting the following:
``(3) during the crop year--
``(A) a payment made pursuant to a contract entered
into under the environmental quality incentives program
under chapter 4 of subtitle D;
``(B) a payment under any other provision of
subtitle D;
``(C) a payment under section 401 or 402 of the
Agricultural Credit Act of 1978 (16 U.S.C. 2201 and
2202); or
``(D) a payment, loan, or other assistance under
section 3 or 8 of the Watershed Protection and Flood
Prevention Act (16 U.S.C. 1003 and 1006a).''.
SEC. 312. CONSERVATION RESERVE LANDS.
Section 1212(a)(3) of the Food Security Act of 1985 (16 U.S.C.
3812(a)(3)) is amended by striking ``shall, if the conservation plan
established under this subtitle for such land requires structures to be
constructed,'' and inserting ``shall only be required to apply
[[Page 110 STAT. 983]]
a conservation plan established under this subtitle. The person shall
not be required to meet a higher conservation standard than the standard
applied to other highly erodible cropland located within the same area.
If the person's conservation plan requires structures to be constructed,
the person shall''.
SEC. 313. GOOD FAITH EXEMPTION.
(a) Grace Period To Resume Conservation Compliance.--Section
1212(f)(1) of the Food Security Act of 1985 (16 U.S.C. 3812(f)(1)) is
amended--
(1) by striking ``Except to the extent provided in paragraph
(2), no'' and inserting ``No''; and
(2) by striking ``such person has--'' and all that follows
through the period at the end of subparagraph (B) and inserting
the following: ``the person has acted in good faith and without
an intent to violate this subtitle. A person who meets the
requirements of this paragraph shall be allowed a reasonable
period of time, as determined by the Secretary, but not to
exceed 1 year, during which to implement the measures and
practices necessary to be considered to be actively applying the
person's conservation plan.''.
(b) Special Penalties Regarding Certain Highly Erodible Cropland.--
Section 1212(f)(2) of the Food Security Act of 1985 (16 U.S.C.
3812(f)(2)) is amended by striking ``meets the requirements of paragraph
(1)'' and inserting ``with respect to highly erodible cropland that was
not in production prior to December 23, 1985, and has acted in good
faith and without an intent to violate the provisions''.
(c) Conforming Amendment.--Section 1212(f)(4) of the Food Security
Act of 1985 (16 U.S.C. 3812(f)(4)) is amended by striking the last
sentence.
SEC. 314. EXPEDITED PROCEDURES FOR GRANTING VARIANCES FROM CONSERVATION
PLANS.
Section 1212(f) of the Food Security Act of 1985 (16 U.S.C.
3812(f)(4)) is amended--
(1) in paragraph (4)(C), by striking ``problem'' and
inserting ``problem, including weather, pest, and disease
problems''; and
(2) by adding at the end the following:
``(5) Expedited procedures for temporary variances.--After
consultation with local conservation districts, the Secretary
shall establish expedited procedures for the consideration and
granting of temporary variances under paragraph (4)(C). If the
request for a temporary variance under paragraph (4)(C) involves
the use of practices or measures to address weather, pest, or
disease problems, the Secretary shall make a decision on whether
to grant the variance during the 30-day period beginning on the
date of receipt of the request. If the Secretary fails to render
a decision during the period, the temporary variance shall be
considered granted.''.
SEC. 315. DEVELOPMENT AND IMPLEMENTATION OF CONSERVATION PLANS AND
CONSERVATION SYSTEMS.
(a) Development and Implementation.--The Food Security Act of 1985
is amended--
(1) by redesignating section 1213 (16 U.S.C. 3813) as
section 1214; and
[[Page 110 STAT. 984]]
(2) by inserting after section 1212 (16 U.S.C. 3812) the
following:
``SEC. 1213. <<NOTE: 16 USC 3812a.>> DEVELOPMENT AND IMPLEMENTATION OF
CONSERVATION PLANS AND CONSERVATION SYSTEMS.
``(a) Technical Requirements.--In connection with the standards and
guidelines contained in Natural Resources Conservation Service field
office technical guides applicable to the development and use of
conservation measures and management practices as part of a conservation
system, the Secretary shall ensure that the standards and guidelines
permit a person to use a conservation system that--
``(1) is technically and economically feasible;
``(2) is based on local resource conditions and available
conservation technology;
``(3) is cost-effective; and
``(4) does not cause undue economic hardship on the person
applying the conservation system under the person's conservation
plan.
``(b) Measurement of Erosion Reduction.--For the purpose of
determining whether there is a substantial reduction in soil erosion on
a field containing highly erodible cropland, the measurement of erosion
reduction achieved by the application of a conservation system under a
person's conservation plan shall be based on the estimated annual level
of erosion at the time of the measurement compared to the estimated
annual level of erosion that existed before the implementation of the
conservation measures and management practices provided for in the
conservation system.
``(c) Residue Measurement.--
``(1) Responsibilities of the secretary.--For the purpose of
measuring the level of residue on a field, the Secretary shall--
``(A) take into account any residue incorporated
into the top 2 inches of soil, as well as the growing
crop, in the measurement;
``(B) provide technical guidelines for acceptable
residue measurement methods;
``(C) provide a certification system for third
parties to perform residue measurements; and
``(D) provide for the acceptance and use of
information and data voluntarily provided by the
producer regarding the field.
``(2) Acceptance of producer measurements.--Annual residue
measurements supplied by a producer (including measurements
performed by a certified third party) shall be used by the
Secretary if the Secretary determines that the measurements
indicate that the residue level for the field meets the level
required under the conservation plan.
``(d) Certification of Compliance.--
``(1) In general.--For the purpose of determining the
eligibility of a person for program benefits specified in
section 1211 at the time application is made for the benefits,
the Secretary shall permit the person to certify that the person
is complying with the person's conservation plan.
``(2) Status reviews.--If a person makes a certification
under paragraph (1), the Secretary shall not be required to
carry out a review of the status of compliance of the person
[[Page 110 STAT. 985]]
with the conservation plan under which the conservation system
is being applied.
``(3) Revisions and modifications.--The Secretary shall
permit a person who makes a certification under paragraph (1)
with respect to a conservation plan to revise the conservation
plan in any manner, if the same level of conservation treatment
provided for by the conservation system under the person's
conservation plan is maintained. The Secretary may not revise
the person's conservation plan without the concurrence of the
person.
``(e) Technical Assistance.--The Secretary shall, using available
resources and consistent with the Secretary's other conservation
responsibilities and objectives, provide technical assistance to a
person throughout the development, revision, and application of the
conservation plan and any conservation system of the person. At the
request of the person, the Secretary may provide technical assistance
regarding conservation measures and management practices for other lands
of the person that do not contain highly erodible cropland.
``(f) Encouragement of On-Farm Research.--To encourage on-farm
conservation research, the Secretary may allow a person to include in
the person's conservation plan or a conservation system under the plan,
on a field trial basis, practices that are not currently approved but
that the Secretary considers have a reasonable likelihood of success.''.
(b) Treatment of Technical Determinations.--Section 226(d)(2) of the
Department of Agriculture Reorganization Act of 1994 (7 U.S.C.
6932(d)(2)) is amended--
(1) by striking ``determination.--With'' and inserting
``determination.--
``(A) In general.--With''; and
(2) by adding at the end the following:
``(B) Economic hardship.--After a technical
determination has been made, on a producer's request, if
a county or area committee determines that the
application of the producer's conservation system would
impose an undue economic hardship on the producer, the
committee shall provide the producer with relief to
avoid the hardship.''.
SEC. 316. INVESTIGATION OF POSSIBLE COMPLIANCE DEFICIENCIES.
Subtitle B of title XII of the Food Security Act of 1985 (as amended
by section 315(a)(1)) is amended by adding at the end the following:
``SEC. 1215. <<NOTE: 16 USC 3814.>> NOTICE AND INVESTIGATION OF POSSIBLE
COMPLIANCE DEFICIENCIES.
``(a) In General.--An employee of the Department of Agriculture who
observes a possible compliance deficiency or other potential violation
of a conservation plan or this subtitle while providing on-site
technical assistance shall provide to the responsible persons, not later
than 45 days after observing the possible violation, information
regarding actions needed to comply with the plan and this subtitle. The
employee shall provide the information in lieu of reporting the
observation as a compliance violation.
``(b) Corrective Action.--The responsible persons shall attempt to
correct the deficiencies as soon as practicable after receiving the
information.
[[Page 110 STAT. 986]]
``(c) Review.--If the corrective action is not fully implemented not
later than 1 year after the responsible persons receive the information,
the Secretary may conduct a review of the status of compliance of the
persons with the conservation plan and this subtitle.''.
SEC. 317. <<NOTE: 16 USC 3811 note.>> WIND EROSION ESTIMATION PILOT
PROJECT.
(a) In General.--The Secretary of Agriculture shall conduct a pilot
project to review, and modify as appropriate, the use of wind erosion
factors under the highly erodible conservation requirements of subtitle
B of title XII of the Food Security Act of 1985 (16 U.S.C. 3811 et
seq.).
(b) Selection of Counties and Producers.--The pilot project shall be
conducted for producers in those counties that--
(1) have approximately 100 percent of their cropland
determined to be highly erodible under title XII of the Act;
(2) have a reasonable likelihood that the use of wind
erosion factors under title XII of the Act have resulted in an
inequitable application of the highly erodible land requirements
of title XII of the Act; and
(3) if the use of the land classification system under
section 1201(a)(9)(A) of the Act (as redesignated by section
301(a)(1)) may result in a more accurate delineation of the
cropland.
(c) Errors in Delineation.--If the Secretary determines that a
significant error has occurred in delineating cropland under the pilot
project, the Secretary shall, at the request of the owners or operators
of the cropland, conduct a new delineation of the cropland using the
most accurate available delineation process, as determined by the
Secretary.
Subtitle C--Wetland Conservation
SEC. 321. PROGRAM INELIGIBILITY.
(a) Program Ineligibility.--Section 1221 of the Food Security Act of
1985 (16 U.S.C. 3821) is amended--
(1) by redesignating subsection (b) as subsection (c); and
(2) by striking the section heading and all that follows
through the end of subsection (a) and inserting the following:
``SEC. 1221. PROGRAM INELIGIBILITY.
``(a) Production on Converted Wetland.--Except as provided in this
subtitle and notwithstanding any other provision of law, any person who
in any crop year produces an agricultural commodity on converted
wetland, as determined by the Secretary, shall be--
``(1) in violation of this section; and
``(2) ineligible for loans or payments in an amount
determined by the Secretary to be proportionate to the severity
of the violation.
``(b) Ineligibility for Certain Loans and Payments.--If a person is
determined to have committed a violation under subsection (a) during a
crop year, the Secretary shall determine which of, and the amount of,
the following loans and payments for which the person shall be
ineligible:
``(1) Contract payments under a production flexibility
contract, marketing assistance loans, and any type of price
support or payment made available under the Agricultural Market
[[Page 110 STAT. 987]]
Transition Act, the Commodity Credit Corporation Charter Act (15
U.S.C. 714 et seq.), or any other Act.
``(2) A loan made or guaranteed under the Consolidated Farm
and Rural Development Act (7 U.S.C. 1921 et seq.) or any other
provision of law administered by the Consolidated Farm Service
Agency, if the Secretary determines that the proceeds of the
loan will be used for a purpose that will contribute to
conversion of a wetland (other than as provided in this
subtitle) to produce an agricultural commodity.
``(3) During the crop year:
``(A) A payment made pursuant to a contract entered
into under the environmental quality incentives program
under chapter 4 of subtitle D.
``(B) A payment under any other provision of
subtitle D.
``(C) A payment under section 401 or 402 of the
Agricultural Credit Act of 1978 (16 U.S.C. 2201 and
2202).
``(D) A payment, loan, or other assistance under
section 3 or 8 of the Watershed Protection and Flood
Prevention Act (16 U.S.C. 1003 and 1006a).''.
(b) Conforming Amendments.--
(1) Section 1221(c) of the Food Security Act of 1985 (as
redesignated by subsection (a)(1)) is amended-- <<NOTE: 16 USC
3821.>>
(A) by striking ``Except'' and inserting ``Wetland
Conversion.--Except'';
(B) by striking ``subsequent to the date of
enactment of the Food, Agriculture, Conservation, and
Trade Act of 1990'' and inserting ``beginning after
November 28, 1990,''; and
(C) by striking ``subsections (a) (1) through (3)''
and inserting ``subsection (b)''.
(2) Section 1221 of the Food Security Act of 1985 (as
amended by subsection (a)) is amended by adding at the end the
following:
``(d) Prior Loans.--This section shall not apply to a loan described
in subsection (b) made before December 23, 1985.''.
SEC. 322. DELINEATION OF WETLANDS; EXEMPTIONS TO PROGRAM INELIGIBILITY.
(a) Delineation of Wetlands.--Section 1222 of the Food Security Act
of 1985 (16 U.S.C. 3822) is amended by striking subsection (a) and
inserting the following:
``(a) Delineation by the Secretary.--
``(1) In general.--Subject to subsection (b) and paragraph
(6), the Secretary shall delineate, determine, and certify all
wetlands located on subject land on a farm.
``(2) Wetland delineation maps.--The Secretary shall
delineate wetlands on wetland delineation maps. On the request
of a person, the Secretary shall make a reasonable effort to
make an on-site wetland determination prior to delineation.
``(3) Certification.--On providing notice to affected
persons, the Secretary shall--
``(A) certify whether a map is sufficient for the
purpose of making a determination of ineligibility for
program benefits under section 1221; and
``(B) provide an opportunity to appeal the
certification prior to the certification becoming final.
[[Page 110 STAT. 988]]
``(4) Duration of certification.--A final certification made
under paragraph (3) shall remain valid and in effect as long as
the area is devoted to an agricultural use or until such time as
the person affected by the certification requests review of the
certification by the Secretary.
``(5) Review of mapping on appeal.--In the case of an appeal
of the Secretary's certification, the Secretary shall review and
certify the accuracy of the mapping of all land subject to the
appeal to ensure that the subject land has been accurately
delineated. Prior to rendering a decision on the appeal, the
Secretary shall conduct an on-site inspection of the subject
land on a farm.
``(6) Reliance on prior certified delineation.--No person
shall be adversely affected because of having taken an action
based on a previous certified wetland delineation by the
Secretary. The delineation shall not be subject to a subsequent
wetland certification or delineation by the Secretary, unless
requested by the person under paragraph (4).''.
(b) Exemptions.--Section 1222 of the Food Security Act of 1985 (16
U.S.C. 3822) is amended by striking subsection (b) and inserting the
following:
``(b) Exemptions.--No person shall become ineligible under section
1221 for program loans or payments under the following circumstances:
``(1) As the result of the production of an agricultural
commodity on the following lands:
``(A) A converted wetland if the conversion of the
wetland was commenced before December 23, 1985.
``(B) Land that is a nontidal drainage or irrigation
ditch excavated in upland.
``(C) A wet area created by a water delivery system,
irrigation, irrigation system, or application of water
for irrigation.
``(D) A wetland on which the owner or operator of a
farm or ranch uses normal cropping or ranching practices
to produce an agricultural commodity in a manner that is
consistent for the area where the production is possible
as a result of a natural condition, such as drought, and
is without action by the producer that destroys a
natural wetland characteristic.
``(E) Land that is an artificial lake or pond
created by excavating or diking land (that is not a
wetland) to collect and retain water and that is used
primarily for livestock watering, fish production,
irrigation, wildlife, fire control, flood control,
cranberry growing, or rice production, or as a settling
pond.
``(F) A wetland that is temporarily or incidentally
created as a result of adjacent development activity.
``(G) A converted wetland if the original conversion
of the wetland was commenced before December 23, 1985,
and the Secretary determines the wetland characteristics
returned after that date as a result of--
``(i) the lack of maintenance of drainage,
dikes, levees, or similar structures;
``(ii) a lack of management of the lands
containing the wetland; or
[[Page 110 STAT. 989]]
``(iii) circumstances beyond the control of
the person.
``(H) A converted wetland, if--
``(i) the converted wetland was determined by
the Natural Resources Conservation Service to have
been manipulated for the production of an
agricultural commodity or forage prior to December
23, 1985, and was returned to wetland conditions
through a voluntary restoration, enhancement, or
creation action subsequent to that determination;
``(ii) technical determinations regarding the
prior site conditions and the restoration,
enhancement, or creation action have been
adequately documented by the Natural Resources
Conservation Service;
``(iii) the proposed conversion action is
approved by the Natural Resources Conservation
Service prior to implementation; and
``(iv) the extent of the proposed conversion
is limited so that the conditions will be at least
equivalent to the wetland functions and values
that existed prior to implementation of the
voluntary wetland restoration, enhancement, or
creation action.
``(2) For the conversion of the following:
``(A) An artificial lake or pond created by
excavating or diking land that is not a wetland to
collect and retain water and that is used primarily for
livestock watering, fish production, irrigation,
wildlife, fire control, flood control, cranberry
growing, rice production, or as a settling pond.
``(B) A wetland that is temporarily or incidentally
created as a result of adjacent development activity.
``(C) A wetland on which the owner or operator of a
farm or ranch uses normal cropping or ranching practices
to produce an agricultural commodity in a manner that is
consistent for the area where the production is possible
as a result of a natural condition, such as drought, and
is without action by the producer that destroys a
natural wetland characteristic.
``(D) A wetland previously identified as a converted
wetland (if the original conversion of the wetland was
commenced before December 23, 1985), but that the
Secretary determines returned to wetland status after
that date as a result of--
``(i) the lack of maintenance of drainage,
dikes, levees, or similar structures;
``(ii) a lack of management of the lands
containing the wetland; or
``(iii) circumstances beyond the control of
the person.
``(E) A wetland, if--
``(i) the wetland was determined by the
Natural Resources Conservation Service to have
been manipulated for the production of an
agricultural commodity or forage prior to December
23, 1985, and was returned to wetland conditions
through a voluntary restoration, enhancement, or
creation action subsequent to that determination;
[[Page 110 STAT. 990]]
``(ii) technical determinations regarding the
prior site conditions and the restoration,
enhancement, or creation action have been
adequately documented by the Natural Resources
Conservation Service;
``(iii) the proposed conversion action is
approved by the Natural Resources Conservation
Service prior to implementation; and
``(iv) the extent of the proposed conversion
is limited so that the conditions will be at least
equivalent to the wetland functions and values
that existed prior to implementation of the
voluntary wetland restoration, enhancement, or
creation action.''.
(c) Identification of Minimal Effect Exemptions.--Section 1222 of
the Food Security Act of 1985 (16 U.S.C. 3822) is amended by striking
subsection (d) and inserting the following:
``(d) Identification of Minimal Effect Exemptions.--For purposes of
applying the minimal effect exemption under subsection (f)(1), the
Secretary shall identify by regulation categorical minimal effect
exemptions on a regional basis to assist persons in avoiding a violation
of the ineligibility provisions of section 1221. The Secretary shall
ensure that employees of the Department of Agriculture who administer
this subtitle receive appropriate training to properly apply the minimal
effect exemptions determined by the Secretary.''.
(d) Minimal Effect and Mitigation Exemptions.--Section 1222 of the
Food Security Act of 1985 (16 U.S.C. 3822) is amended by striking
subsection (f) and inserting the following:
``(f) Minimal Effect; Mitigation.--The Secretary shall exempt a
person from the ineligibility provisions of section 1221 for any action
associated with the production of an agricultural commodity on a
converted wetland, or the conversion of a wetland, if 1 or more of the
following conditions apply, as determined by the Secretary:
``(1) The action, individually and in connection with all
other similar actions authorized by the Secretary in the area,
will have a minimal effect on the functional hydrological and
biological value of the wetlands in the area, including the
value to waterfowl and wildlife.
``(2) The wetland and the wetland values, acreage, and
functions are mitigated by the person through the restoration of
a converted wetland, the enhancement of an existing wetland, or
the creation of a new wetland, and the restoration, enhancement,
or creation is--
``(A) in accordance with a wetland conservation
plan;
``(B) in advance of, or concurrent with, the action;
``(C) not at the expense of the Federal Government;
``(D) in the case of enhancement or restoration of
wetlands, on not greater than a 1-for-1 acreage basis
unless more acreage is needed to provide equivalent
functions and values that will be lost as a result of
the wetland conversion to be mitigated;
``(E) in the case of creation of wetlands, on
greater than a 1-for-1 acreage basis if more acreage is
needed to provide equivalent functions and values that
will be lost as a result of the wetland conversion that
is mitigated;
``(F) on lands in the same general area of the local
watershed as the converted wetland; and
[[Page 110 STAT. 991]]
``(G) with respect to the restored, enhanced, or
created wetland, made subject to an easement that--
``(i) is recorded on public land records;
``(ii) remains in force for as long as the
converted wetland for which the restoration,
enhancement, or creation to be mitigated remains
in agricultural use or is not returned to its
original wetland classification with equivalent
functions and values; and
``(iii) prohibits making alterations to the
restored, enhanced, or created wetland that lower
the wetland's functions and values.
``(3) The wetland was converted after December 23, 1985, but
before November 28, 1990, and the wetland values, acreage, and
functions are mitigated by the producer through the requirements
of subparagraphs (A), (B), (C), (D), (F), and (G) of paragraph
(2).
``(4) The action was authorized by a permit issued under
section 404 of the Federal Water Pollution Control Act (33
U.S.C. 1344) and the wetland values, acreage, and functions of
the converted wetland were adequately mitigated for the purposes
of this subtitle.''.
(e) References to Producer.--Section 1222(g) of the Food Security
Act of 1985 (16 U.S.C. 3822(g)) is amended by striking ``producer'' and
inserting ``person''.
(f) Good Faith Exemption.--Section 1222 of the Food Security Act of
1985 (16 U.S.C. 3822) is amended by striking subsection (h) and
inserting the following:
``(h) Good Faith Exemption.--
``(1) Exemption described.--The Secretary may waive a
person's ineligibility under section 1221 for program loans,
payments, and benefits as the result of the conversion of a
wetland subsequent to November 28, 1990, or the production of an
agricultural commodity on a converted wetland, if the Secretary
determines that the person has acted in good faith and without
intent to violate this subtitle.
``(2) Period for compliance.--The Secretary shall provide a
person who the Secretary determines has acted in good faith and
without intent to violate this subtitle with a reasonable
period, but not to exceed 1 year, during which to implement the
measures and practices necessary to be considered to actively
restoring the subject wetland.''.
(g) Restoration.--Section 1222(i) of the Food Security Act of 1985
(16 U.S.C. 3822(i)) is amended by inserting before the period at the end
the following: ``or has otherwise mitigated for the loss of wetland
values, as determined by the Secretary, through the restoration,
enhancement, or creation of wetland values in the same general area of
the local watershed as the converted wetland''.
(h) Determinations.--Section 1222 of the Food Security Act of 1985
(16 U.S.C. 3822) is amended by striking subsection (j) and inserting the
following:
``(j) Determinations; Restoration and Mitigation Plans; Monitoring
Activities.--Technical determinations, the development of restoration
and mitigation plans, and monitoring activities under this section shall
be made by the National Resources Conservation Service.''.
[[Page 110 STAT. 992]]
(i) Mitigation Banking.--Section 1222 of the Food Security Act of
1985 (16 U.S.C. 3822) is amended by adding at the end the following:
``(k) Mitigation Banking Program.--Using authorities available to
the Secretary, the Secretary may operate a pilot program for mitigation
banking of wetlands to assist persons to increase the efficiency of
agricultural operations while protecting wetland functions and values.
Subsection (f)(2)(C) shall not apply to this subsection.''.
SEC. 323. CONSULTATION AND COOPERATION REQUIREMENTS.
Section 1223 of the Food Security Act of 1985 (16 U.S.C. 3823) is
repealed.
SEC. 324. APPLICATION OF PROGRAM INELIGIBILITY TO AFFILIATED PERSONS.
The Food Security Act of 1985 (as amended by section 323) is amended
by inserting after section 1222 (16 U.S.C. 3822) the following:
``SEC. 1223. <<NOTE: 16 USC 3823.>> AFFILIATED PERSONS.
``If a person is affected by a reduction in benefits under section
1221 and the affected person is affiliated with other persons for the
purpose of receiving the benefits, the benefits of each affiliated
person shall be reduced under section 1221 in proportion to the interest
held by the affiliated person.''.
SEC. 325. CLARIFICATION OF DEFINITION OF AGRICULTURAL LANDS IN
MEMORANDUM OF AGREEMENT.
(a) Agricultural Lands.--For purposes of implementing the memorandum
of agreement entered into between the Department of Agriculture, the
Environmental Protection Agency, the Department of the Interior, and the
Department of the Army on January 6, 1994, relating to the delineation
of wetlands, the term ``agricultural lands'' shall include--
(1) native pasture, rangelands, and other lands used to
produce or support the production of livestock; and
(2) tree farms.
(b) Wetland Conservation.--Subsection (a) shall not apply with
respect to the delineation of wetlands under subtitle C of title XII of
the Food Security Act of 1985 (16 U.S.C. 3821 et seq.) or to the
enforcement of the subtitle.
(c) Successor Memorandum.--Subsection (a) shall apply to any
amendment to or successor of the memorandum of agreement described in
subsection (a).
SEC. 326. <<NOTE: 16 USC 3821 note.>> EFFECTIVE DATE.
This subtitle and the amendments made by this subtitle shall become
effective 90 days after the date of enactment of this Act.
Subtitle D--Environmental Conservation Acreage Reserve Program
SEC. 331. ENVIRONMENTAL CONSERVATION ACREAGE RESERVE PROGRAM.
Section 1230 of the Food Security Act of 1985 (16 U.S.C. 3830) is
amended to read as follows:
[[Page 110 STAT. 993]]
``SEC. 1230. ENVIRONMENTAL CONSERVATION ACREAGE RESERVE PROGRAM.
``(a) Establishment.--
``(1) In general.--During the 1996 through 2002 calendar
years, the Secretary shall establish an environmental
conservation acreage reserve program (referred to in this
section as `ECARP') to be implemented through contracts and the
acquisition of easements to assist owners and operators of farms
and ranches to conserve and enhance soil, water, and related
natural resources, including grazing land, wetland, and wildlife
habitat.
``(2) Means.--The Secretary shall carry out the ECARP by--
``(A) providing for the long-term protection of
environmentally sensitive land; and
``(B) providing technical and financial assistance
to farmers and ranchers to--
``(i) improve the management and operation of
the farms and ranches; and
``(ii) reconcile productivity and
profitability with protection and enhancement of
the environment.
``(3) Programs.--The ECARP shall consist of--
``(A) the conservation reserve program established
under subchapter B;
``(B) the wetlands reserve program established under
subchapter C; and
``(C) the environmental quality incentives program
established under chapter 4.
``(b) Administration.--
``(1) <<NOTE: Contracts.>> In general.--In carrying out the
ECARP, the Secretary shall enter into contracts with owners and
operators and acquire interests in land through easements from
owners, as provided in this chapter and chapter 4.
``(2) Prior enrollments.--Acreage enrolled in the
conservation reserve or wetlands reserve program prior to the
date of enactment of this paragraph shall be considered to be
placed into the ECARP.
``(c) Conservation Priority Areas.--
``(1) Designation.--The Secretary may designate watersheds,
multistate areas, or regions of special environmental
sensitivity as conservation priority areas that are eligible for
enhanced assistance under this chapter and chapter 4.
``(2) Assistance.--The Secretary may designate areas as
conservation priority areas to assist, to the maximum extent
practicable, agricultural producers within the conservation
priority areas to comply with nonpoint source pollution
requirements under the Federal Water Pollution Control Act (33
U.S.C. 1251 et seq.) and other Federal and State environmental
laws and to meet other conservation needs.
``(3) Producers.--The Secretary may provide technical
assistance, cost-share payments, and incentive payments to
producers in a conservation priority area under this chapter and
chapter 4 based on--
``(A) the significance of the soil, water, wildlife
habitat, and related natural resource problems in a
watershed, multistate area, or region; and
[[Page 110 STAT. 994]]
``(B) the structural practices or land management
practices that best address the problems, and that
maximize environmental benefits for each dollar
expended, as determined by the Secretary.''.
SEC. 332. CONSERVATION RESERVE PROGRAM.
(a) Program Extensions.--
(1) Conservation reserve program.--Section 1231 of the Food
Security Act of 1985 (16 U.S.C. 3831) is amended by striking
``1995'' each place it appears and inserting ``2002''.
(2) Duties of owners and operators.--Section 1232(c) of the
Food Security Act of 1985 (16 U.S.C. 3832(c)) is amended by
striking ``1995'' and inserting ``2002''.
(b) Maximum Enrollment.--Section 1231 of the Food Security Act of
1985 (16 U.S.C. 3831) is amended by striking subsection (d) and
inserting the following:
``(d) Maximum Enrollment.--The Secretary may maintain up to
36,400,000 acres in the conservation reserve at any one time during the
1986 through 2002 calendar years (including contracts extended by the
Secretary pursuant to section 1437(c) of the Food, Agriculture,
Conservation, and Trade Act of 1990 (Public Law 101-624; 16 U.S.C. 3831
note)).''.
(c) Optional Contract Termination by Producers.--Section 1235 of the
Food Security Act of 1985 (16 U.S.C. 3835) is amended--
(1) in subsection (a)--
(A) in paragraph (1), by striking ``3-year'' and
inserting ``1-year''; and
(B) in paragraph (2)(B)(i), by striking ``3 years''
and inserting ``1 year''; and
(2) by adding at the end the following:
``(e) Termination by Owner or Operator.--
``(1) Early termination authorized.--Subject to the other
provisions of this subsection, the Secretary shall allow a
participant who entered into a contract before January 1, 1995,
to terminate the contract at any time if the contract has been
in effect for at least 5 years. The termination shall not
relieve the participant of liability for a contract violation
occurring before the date of the termination. The participant
shall provide the Secretary with reasonable notice of the
participant's desire to terminate the contract.
``(2) Certain lands excepted.--The following lands shall not
be subject to an early termination of contract under this
subsection:
``(A) Filterstrips, waterways, strips adjacent to
riparian areas, windbreaks, and shelterbelts.
``(B) Land with an erodibility index of more than
15.
``(C) Other lands of high environmental value
(including wetlands), as determined by the Secretary.
``(3) Effective date.--The contract termination shall become
effective 60 days after the date on which the owner or operator
submits the notice required under paragraph (1).
``(4) Prorated rental payment.--If a contract entered into
under this subchapter is terminated under this subsection before
the end of the fiscal year for which a rental payment is due,
the Secretary shall provide a prorated rental payment covering
the portion of the fiscal year during which the contract was in
effect.
[[Page 110 STAT. 995]]
``(5) Renewed enrollment.--The termination of a contract
entered into under this subchapter shall not affect the ability
of the owner or operator who requested the termination to submit
a subsequent bid to enroll the land that was subject to the
contract into the conservation reserve.
``(6) Conservation requirements.--If land that was subject
to a contract is returned to production of an agricultural
commodity, the conservation requirements under subtitles B and C
shall apply to the use of the land to the extent that the
requirements are similar to those requirements imposed on other
similar lands in the area, except that the requirements may not
be more onerous than the requirements imposed on other lands.''.
(d) Enrollments in 1997.--Section 725 of the Agriculture, Rural
Development, Food and Drug Administration, and Related Agencies
Appropriations Act, 1996 (Public Law 104-37; 109 Stat. 332), is amended
by striking ``: Provided,'' and all that follows through ``1997''.
SEC. 333. WETLANDS RESERVE PROGRAM.
(a) Enrollment.--Section 1237 of the Food Security Act of 1985 (16
U.S.C. 3837) is amended by striking subsection (b) and inserting the
following:
``(b) Enrollment Conditions.--
``(1) Maximum enrollment.--The total number of acres
enrolled in the wetlands reserve program shall not exceed
975,000 acres.
``(2) Methods of enrollment.--
``(A) In general.--Subject to subparagraph (B),
effective beginning October 1, 1996, to the maximum
extent practicable, the Secretary shall enroll into the
wetlands reserve program--
``(i) \1/3\ of the acres through the use of
permanent easements;
``(ii) \1/3\ of the acres through the use of
30-year easements; and
``(iii) \1/3\ of the acres through the use of
restoration cost-share agreements.
``(B) Temporary easements.--Effective beginning
October 1, 1996, the Secretary shall not enroll acres in
the wetlands reserve program through the use of new
permanent easements until the Secretary has enrolled at
least 75,000 acres in the program through the use of
temporary easements.''.
(b) Eligibility.--Section 1237(c) of the Food Security Act of 1985
(16 U.S.C. 3837(c)) is amended--
(1) by striking ``2000'' and inserting ``2002'';
(2) by redesignating paragraphs (1) and (2) as paragraphs
(2) and (3), respectively; and
(3) by inserting after ``determines that--'' the following:
``(1) such land maximizes wildlife benefits and wetland
values and functions;''.
(c) Other Eligible Lands.--Section 1237(d) of the Food Security Act
of 1985 (16 U.S.C. 3837(d)) is amended--
(1) by inserting after ``subsection (c)'' the following ``,
land that maximizes wildlife benefits and that is''; and
[[Page 110 STAT. 996]]
(2) in paragraph (2), by striking ``and'' at the end and
inserting ``or''.
(d) Easements.--Section 1237A of the Food Security Act of 1985 (16
U.S.C. 3837a) is amended--
(1) in the section heading, by inserting before the period
at the end the following: ``and agreements'';
(2) by striking subsection (c) and inserting the following:
``(c) Restoration Plans.--The development of a restoration plan,
including any compatible use, under this section shall be made through
the local Natural Resources Conservation Service representative, in
consultation with the State technical committee.'';
(3) in subsection (f), by striking the third sentence and
inserting the following: ``Compensation may be provided in not
less than 5, nor more than 30, annual payments of equal or
unequal size, as agreed to by the owner and the Secretary.'';
and
(4) by adding at the end the following:
``(h) Restoration Cost-Share Agreements.--The Secretary may enroll
land into the wetlands reserve program through an agreement that
requires the landowner to restore wetlands on the land, if the agreement
does not provide the Secretary with an easement.''.
(e) Cost-Share and Technical Assistance.--Section 1237C of the Food
Security Act of 1985 (16 U.S.C. 3837c) is amended by striking subsection
(b) and inserting the following:
``(b) Cost-Share and Technical Assistance.--
``(1) <<NOTE: Effective date.>> Easements.--Effective
beginning October 1, 1996, in making cost-share payments under
subsection (a)(1), the Secretary shall--
``(A) in the case of a permanent easement, pay the
owner an amount that is not less than 75 percent, but
not more than 100 percent, of the eligible costs; and
``(B) in the case of a 30-year easement, pay the
owner an amount that is not less than 50 percent, but
not more than 75 percent, of the eligible costs.
``(2) Restoration cost-share agreements.--In making cost-
share payments in connection with a restoration cost-share
agreement entered into under section 1237A(h), the Secretary
shall pay the owner an amount that is not less than 50 percent,
but not more than 75 percent, of the eligible costs.
``(3) Technical assistance.--The Secretary shall provide
owners with technical assistance to assist owners in complying
with the terms of easements and restoration cost-share
agreements.''.
(f) <<NOTE: 16 USC 3837 note.>> Effect on Existing Agreements.--The
amendments made by this section shall not affect the validity or terms
of any agreements entered into by the Secretary of Agriculture under
subchapter C of chapter 1 of subtitle D of title XII of the Food
Security Act of 1985 (16 U.S.C. 3837 et seq.) before the date of
enactment of this Act or any payments required to be made in connection
with the agreements.
SEC. 334. ENVIRONMENTAL QUALITY INCENTIVES PROGRAM.
Subtitle D of title XII of the Food Security Act of 1985 (16 U.S.C.
3830 et seq.) is amended by adding at the end the following:
[[Page 110 STAT. 997]]
``CHAPTER 4--ENVIRONMENTAL QUALITY INCENTIVES PROGRAM
``SEC. 1240. <<NOTE: 16 USC 3839aa.>> PURPOSES.
``The purposes of the environmental quality incentives program
established by this chapter are to--
``(1) combine into a single program the functions of--
``(A) the agricultural conservation program
authorized by sections 7 and 8 of the Soil Conservation
and Domestic Allotment Act (16 U.S.C. 590g and 590h) (as
in effect before the amendments made by section
336(a)(1) of the Federal Agriculture Improvement and
Reform Act of 1996);
``(B) the Great Plains conservation program
established under section 16(b) of the Soil Conservation
and Domestic Allotment Act (16 U.S.C. 590p(b)) (as in
effect before the amendment made by section 336(b)(1) of
the Federal Agriculture Improvement and Reform Act of
1996);
``(C) the water quality incentives program
established under chapter 2 (as in effect before the
amendment made by section 336(h) of the Federal
Agriculture Improvement and Reform Act of 1996); and
``(D) the Colorado River Basin salinity control
program established under section 202(c) of the Colorado
River Basin Salinity Control Act (43 U.S.C. 1592(c)) (as
in effect before the amendment made by section 336(c)(1)
of the Federal Agriculture Improvement and Reform Act of
1996); and
``(2) carry out the single program in a manner that
maximizes environmental benefits per dollar expended, and that
provides--
``(A) flexible technical and financial assistance to
farmers and ranchers that face the most serious threats
to soil, water, and related natural resources, including
grazing lands, wetlands, and wildlife habitat;
``(B) assistance to farmers and ranchers in
complying with this title and Federal and State
environmental laws, and encourages environmental
enhancement;
``(C) assistance to farmers and ranchers in making
beneficial, cost-effective changes to cropping systems,
grazing management, manure, nutrient, pest, or
irrigation management, land uses, or other measures
needed to conserve and improve soil, water, and related
natural resources; and
``(D) for the consolidation and simplification of
the conservation planning process to reduce
administrative burdens on producers.
``SEC. 1240A. <<NOTE: 16 USC 3839aa-1.>> DEFINITIONS.
``In this chapter:
``(1) Eligible land.--The term `eligible land' means
agricultural land (including cropland, rangeland, pasture, and
other land on which crops or livestock are produced), including
agricultural land that the Secretary determines poses a serious
threat to soil, water, or related resources by reason of the
soil types, terrain, climatic, soil, topographic, flood, or
saline characteristics, or other factors or natural hazards.
``(2) Land management practice.--The term `land management
practice' means a site-specific nutrient or manure
[[Page 110 STAT. 998]]
management, integrated pest management, irrigation management,
tillage or residue management, grazing management, or other land
management practice carried out on eligible land that the
Secretary determines is needed to protect, in the most cost-
effective manner, water, soil, or related resources from
degradation.
``(3) Livestock.--The term `livestock' means dairy cattle,
beef cattle, laying hens, broilers, turkeys, swine, sheep, and
such other animals as determined by the Secretary.
``(4) Producer.--The term `producer' means a person who is
engaged in livestock or agricultural production (as defined by
the Secretary).
``(5) Structural practice.--The term `structural practice'
means--
``(A) the establishment on eligible land of a site-
specific animal waste management facility, terrace,
grassed waterway, contour grass strip, filterstrip,
tailwater pit, permanent wildlife habitat, or other
structural practice that the Secretary determines is
needed to protect, in the most cost-effective manner,
water, soil, or related resources from degradation; and
``(B) the capping of abandoned wells on eligible
land.
``SEC. 1240B. <<NOTE: 16 USC 3839aa-2.>> ESTABLISHMENT AND
ADMINISTRATION OF ENVIRONMENTAL QUALITY INCENTIVES PROGRAM.
``(a) Establishment.--
``(1) In general.--During the 1996 through 2002 fiscal
years, the Secretary shall provide technical assistance, cost-
share payments, incentive payments, and education to producers,
who enter into contracts with the Secretary, through an
environmental quality incentives program in accordance with this
chapter.
``(2) Eligible practices.--
``(A) Structural practices.--A producer who
implements a structural practice shall be eligible for
any combination of technical assistance, cost-share
payments, and education.
``(B) Land management practices.--A producer who
performs a land management practice shall be eligible
for any combination of technical assistance, incentive
payments, and education.
``(b) Application and Term.--A contract between a producer and the
Secretary under this chapter may--
``(1) apply to 1 or more structural practices or 1 or more
land management practices, or both; and
``(2) have a term of not less than 5, nor more than 10,
years, as determined appropriate by the Secretary, depending on
the practice or practices that are the basis of the contract.
``(c) Structural Practices.--
``(1) Offer selection process.--The Secretary shall, to the
maximum extent practicable, establish a process for selecting
applications for financial assistance if there are numerous
applications for assistance for structural practices that would
provide substantially the same level of environmental benefits.
The process shall be based on--
``(A) a reasonable estimate of the projected cost of
the proposals and other factors identified by the
Secretary
[[Page 110 STAT. 999]]
for determining which applications will result in the
least cost to the program authorized by this chapter;
and
``(B) the priorities established under this subtitle
and such other factors determined by the Secretary that
maximize environmental benefits per dollar expended.
``(2) Concurrence of owner.--If the producer making an offer
to implement a structural practice is a tenant of the land
involved in agricultural production, for the offer to be
acceptable, the producer shall obtain the concurrence of the
owner of the land with respect to the offer.
``(d) Land Management Practices.--The Secretary shall establish an
application and evaluation process for awarding technical assistance or
incentive payments, or both, to a producer in exchange for the
performance of 1 or more land management practices by the producer.
``(e) Cost-Share Payments, Incentive Payments, and Technical
Assistance.--
``(1) Cost-share payments.--
``(A) In general.--The Federal share of cost-share
payments to a producer proposing to implement 1 or more
structural practices shall be not more than 75 percent
of the projected cost of the practice, as determined by
the Secretary, taking into consideration any payment
received by the producer from a State or local
government.
``(B) Limitation.--A producer who owns or operates a
large confined livestock operation (as defined by the
Secretary) shall not be eligible for cost-share payments
to construct an animal waste management facility.
``(C) Other payments.--A producer shall not be
eligible for cost-share payments for structural
practices on eligible land under this chapter if the
producer receives cost-share payments or other benefits
for the same land under chapter 1 or 3.
``(2) Incentive payments.--The Secretary shall make
incentive payments in an amount and at a rate determined by the
Secretary to be necessary to encourage a producer to perform 1
or more land management practices.
``(3) Technical assistance.--
``(A) Funding.--The Secretary shall allocate funding
under this chapter for the provision of technical
assistance according to the purpose and projected cost
for which the technical assistance is provided for a
fiscal year. The allocated amount may vary according to
the type of expertise required, quantity of time
involved, and other factors as determined appropriate by
the Secretary. Funding shall not exceed the projected
cost to the Secretary of the technical assistance
provided for a fiscal year.
``(B) Other authorities.--The receipt of technical
assistance under this chapter shall not affect the
eligibility of the producer to receive technical
assistance under other authorities of law available to
the Secretary.
``(C) Private sources.--The Secretary shall ensure
that the processes of writing and developing proposals
and plans for contracts under this chapter, and of
assisting in the implementation of structural practices
and land management practices covered by the contracts,
are open to individuals in agribusiness, including
agricultural
[[Page 110 STAT. 1000]]
producers, representatives from agricultural
cooperatives, agricultural input retail dealers, and
certified crop advisers. The requirements of this
subparagraph shall also apply to any other conservation
program of the Department of Agriculture that provides
incentive payments, technical assistance, or cost-share
payments.
``(f) Modification or Termination of Contracts.--
``(1) Voluntary modification or termination.--The Secretary
may modify or terminate a contract entered into with a producer
under this chapter if--
``(A) the producer agrees to the modification or
termination; and
``(B) the Secretary determines that the modification
or termination is in the public interest.
``(2) Involuntary termination.--The Secretary may terminate
a contract under this chapter if the Secretary determines that
the producer violated the contract.
``(g) Non-Federal Assistance.--The Secretary may request the
services of a State water quality agency, State fish and wildlife
agency, State forestry agency, or any other governmental or private
resource considered appropriate to assist in providing the technical
assistance necessary for the development and implementation of a
structural practice or land management practice.
``SEC. 1240C. <<NOTE: 16 USC 3839aa-3.>> EVALUATION OF OFFERS AND
PAYMENTS.
``In providing technical assistance, cost-share payments, and
incentive payments to producers, the Secretary shall accord a higher
priority to assistance and payments that--
``(1) are provided in conservation priority areas
established under section 1230(c);
``(2) maximize environmental benefits per dollar expended;
or
``(3) are provided in watersheds, regions, or conservation
priority areas in which State or local governments have
provided, or will provide, financial or technical assistance to
producers for the same conservation or environmental purposes.
``SEC. 1240D. <<NOTE: 16 USC 3839aa-4.>> DUTIES OF PRODUCERS.
``To receive technical assistance, cost-share payments, or incentive
payments under this chapter, a producer shall agree--
``(1) to implement an environmental quality incentives
program plan that describes conservation and environmental goals
to be achieved through a structural practice or land management
practice, or both, that is approved by the Secretary;
``(2) not to conduct any practices on the farm or ranch that
would tend to defeat the purposes of this chapter;
``(3) on the violation of a term or condition of the
contract at any time the producer has control of the land, to
refund any cost-share or incentive payment received with
interest, and forfeit any future payments under this chapter, as
determined by the Secretary;
``(4) on the transfer of the right and interest of the
producer in land subject to the contract, unless the transferee
of the right and interest agrees with the Secretary to assume
all obligations of the contract, to refund all cost-share
payments and incentive payments received under this chapter, as
determined by the Secretary;
[[Page 110 STAT. 1001]]
``(5) to supply information as required by the Secretary to
determine compliance with the environmental quality incentives
program plan and requirements of the program; and
``(6) to comply with such additional provisions as the
Secretary determines are necessary to carry out the
environmental quality incentives program plan.
``SEC. 1240E. <<NOTE: 16 USC 3839aa-5.>> ENVIRONMENTAL QUALITY
INCENTIVES PROGRAM PLAN.
``(a) In General.--To be eligible to enter into a contract under the
environmental quality incentives program, an owner or producer of a
livestock or agricultural operation must submit to the Secretary for
approval a plan of operations that incorporates such conservation
practices, and is based on such principles, as the Secretary considers
necessary to carry out the program, including a description of
structural practices and land management practices to be implemented and
the objectives to be met by the plan's implementation.
``(b) Avoidance of Duplication.--The Secretary shall, to the maximum
extent practicable, eliminate duplication of planning activities under
the environmental quality incentives program and comparable conservation
programs.
``SEC. 1240F. <<NOTE: 16 USC 3839aa-6.>> DUTIES OF THE SECRETARY.
``To the extent appropriate, the Secretary shall assist a producer
in achieving the conservation and environmental goals of an
environmental quality incentives program plan by--
``(1) providing an eligibility assessment of the farming or
ranching operation of the producer as a basis for developing the
plan;
``(2) providing technical assistance in developing and
implementing the plan;
``(3) providing technical assistance, cost-share payments,
or incentive payments for developing and implementing 1 or more
structural practices or 1 or more land management practices, as
appropriate;
``(4) providing the producer with information, education,
and training to aid in implementation of the plan; and
``(5) encouraging the producer to obtain technical
assistance, cost-share payments, or grants from other Federal,
State, local, or private sources.
``SEC. 1240G. <<NOTE: 16 USC 3839aa-7.>> LIMITATION ON PAYMENTS.
``(a) In General.--The total amount of cost-share and incentive
payments paid to a producer under this chapter may not exceed--
``(1) $10,000 for any fiscal year; or
``(2) $50,000 for any multiyear contract.
``(b) Exception to Annual Limit.--The Secretary may exceed the
limitation on the annual amount of a payment under subsection (a)(1) on
a case-by-case basis if the Secretary determines that a larger payment
is--
``(1) essential to accomplish the land management practice
or structural practice for which the payment is made; and
``(2) consistent with the maximization of environmental
benefits per dollar expended and the purposes of this chapter
specified in section 1240.
``(c) Timing of Expenditures.--Expenditures under a contract entered
into under this chapter during a fiscal year may not be made by the
Secretary until the subsequent fiscal year.
[[Page 110 STAT. 1002]]
``SEC. 1240H. <<NOTE: 16 USC 3839aa-8.>> TEMPORARY ADMINISTRATION OF
ENVIRONMENTAL QUALITY INCENTIVES PROGRAM.
``(a) Interim Administration.--
``(1) In general.--During the period beginning on the date
of enactment of this section and ending on the termination date
provided under paragraph (2), to ensure that technical
assistance, cost-share payments, and incentive payments continue
to be administered in an orderly manner until such time as
assistance can be provided through final regulations issued to
implement the environmental quality incentives program
established under this chapter, the Secretary shall continue
to--
``(A) provide technical assistance, cost-share
payments, and incentive payments under the terms and
conditions of the agricultural conservation program, the
Great Plains conservation program, the water quality
incentives program, and the Colorado River Basin
salinity control program, to the extent the terms and
conditions of the program are consistent with the
environmental quality incentives program; and
``(B) use for those purposes--
``(i) any funds remaining available for the
agricultural conservation program, the Great
Plains conservation program, the water quality
incentives program, and the Colorado River Basin
salinity control program; and
``(ii) as the Secretary determines to be
necessary, any funds authorized to be used to
carry out the environmental quality incentives
program.
``(2) Termination of authority.--The authority of the
Secretary to carry out paragraph (1) shall terminate on the date
that is 180 days after the date of enactment of this section.
``(b) <<NOTE: Effective date.>> Permanent Administration.--Effective
beginning on the termination date provided under subsection (a)(2), the
Secretary shall provide technical assistance, cost-share payments, and
incentive payments for structural practices and land management
practices related to crop and livestock production in accordance with
final regulations issued to carry out the environmental quality
incentives program.''.
SEC. 335. CONSERVATION FARM OPTION.
Subtitle D of title XII of the Food Security Act of 1985 (16 U.S.C.
3830 et seq.) (as amended by section 334) is amended by adding at the
end the following:
``CHAPTER 5--CONSERVATION FARM OPTION
``SEC. 1240M. <<NOTE: 16 USC 3839bb.>> CONSERVATION FARM OPTION.
``(a) In General.--The Secretary shall establish conservation farm
option pilot programs for producers of wheat, feed grains, cotton, and
rice.
``(b) Eligible Owners and Producers.--An owner or producer with a
farm that has contract acreage enrolled in the agricultural market
transition program established under the Agricultural Market Transition
Act shall be eligible to participate in the conservation farm option
offered under a pilot program under subsection (a)
[[Page 110 STAT. 1003]]
if the owner or producer meets the conditions established under section
(e).
``(c) Purposes.--The purposes of the conservation farm option pilot
programs shall include--
``(1) conservation of soil, water, and related resources;
``(2) water quality protection or improvement;
``(3) wetland restoration, protection, and creation;
``(4) wildlife habitat development and protection; or
``(5) other similar conservation purposes.
``(d) Conservation Farm Plan.--
``(1) In general.--To be eligible to enter into a
conservation farm option contract, an owner or producer must
prepare and submit to the Secretary, for approval, a
conservation farm plan that shall become a part of the
conservation farm option contract.
``(2) Requirements.--A conservation farm plan shall--
``(A) describe the resource-conserving crop
rotations, and all other conservation practices, to be
implemented and maintained on the acreage that is
subject to contract during the contract period;
``(B) contain a schedule for the implementation and
maintenance of the practices described in the
conservation farm plan;
``(C) comply with highly erodible land and wetland
conservation requirements of this title; and
``(D) contain such other terms as the Secretary may
require.
``(e) Contracts.--
``(1) In general.--On approval of a conservation farm plan,
the Secretary may enter into a contract with the owner or
producer that specifies the acres being enrolled and the
practices being adopted.
``(2) Duration of contract.--The contract shall be for a
period of 10 years. The contract may be renewed for a period of
not to exceed 5 years on mutual agreement of the Secretary and
the owner or producer.
``(3) Consideration.--In exchange for payments under this
subsection, the owner or producer shall not participate in and
shall forgo payments under--
``(A) the conservation reserve program established
under subchapter B of chapter 1;
``(B) the wetlands reserve program established under
subchapter C of chapter 1; and
``(C) the environmental quality incentives program
established under chapter 4.
``(4) Owner or producer responsibilities under the
agreement.--Under the terms of the contract entered into under
this section, an owner or producer shall agree to--
``(A) actively comply with the terms and conditions
of the approved conservation farm plan;
``(B) <<NOTE: Records.>> keep such records as the
Secretary may reasonably require for purposes of
evaluation of the implementation of the conservation
farm plan; and
``(C) not engage in any activity that would defeat
the purposes of the conservation farm option pilot
program.
``(5) Payments.--The Secretary shall offer an owner or
producer annual payments under the contract that are equiva
[[Page 110 STAT. 1004]]
lent to the payments the owner or producer would have received
under the conservation reserve program, the wetlands reserve
program, and the environmental quality incentives program.
``(6) Balance of benefits.--The Secretary shall not permit
an owner or producer to terminate a conservation reserve program
contract and enter a conservation farm option contract if the
Secretary determines that such action will reduce net
environmental benefits.
``(f) Secretarial Determinations.--
``(1) Acreage estimates.--Prior to each year during which
the Secretary intends to offer conservation reserve program
contracts, the Secretary shall estimate the number of acres
that--
``(A) will be retired under the conservation farm
option under the terms and conditions the Secretary
intends to offer for that program; and
``(B) would be retired under the conservation
reserve program if the conservation farm option were not
available.
``(2) Total land retirement.--The Secretary shall announce a
number of acres to be enrolled in the conservation reserve
program that will result in a total number of acres retired
under the conservation reserve program and the conservation farm
option that does not exceed the amount estimated under paragraph
(1)(B) for the current or future years.
``(3) Limitation.--The Secretary shall not enroll additional
conservation reserve program contracts to offset the land
retired under the conservation farm option.
``(g) Commodity Credit Corporation.--The Secretary shall use the
funds, authorities, and facilities of the Commodity Credit Corporation
to carry out this subsection.
``(h) Funding.--Of the funds of the Commodity Credit Corporation,
the Corporation shall make available to carry out this section--
``(1) $7,500,000 for fiscal year 1997;
``(2) $15,000,000 for fiscal year 1998;
``(3) $25,000,000 for fiscal year 1999;
``(4) $37,500,000 for fiscal year 2000;
``(5) $50,000,000 for fiscal year 2001; and
``(6) $62,500,000 for fiscal year 2002.''.
SEC. 336. REPEAL OF SUPERSEDED AUTHORITIES.
(a) Agricultural Conservation Program.--
(1) Elimination.--
(A) Section 8 of the Soil Conservation and Domestic
Allotment Act (16 U.S.C. 590h) is amended--
(i) in subsection (b)--
(I) by striking paragraphs (1)
through (4) and inserting the following:
``(1) Environmental quality incentives program.--The
Secretary shall provide technical assistance, cost-share
payments, and incentive payments to operators through the
environmental quality incentives program in accordance with
chapter 4 of subtitle D of title XII of the Food Security Act of
1985.''; and
(II) by striking paragraphs (6)
through (8); and
(ii) by striking subsections (d), (e), and
(f).
[[Page 110 STAT. 1005]]
(B) The first sentence of section 11 of the Soil
Conservation and Domestic Allotment Act (16 U.S.C. 590k)
is amended by striking ``performance: Provided
further,'' and all that follows through ``or other law''
and inserting ``performance''.
(C) Section 14 of the Soil Conservation and Domestic
Allotment Act (16 U.S.C. 590n) is amended--
(i) in the first sentence, by striking ``or
8''; and
(ii) by striking the second sentence.
(D) Section 15 of the Soil Conservation and Domestic
Allotment Act (16 U.S.C. 590o) is amended--
(i) in the first undesignated paragraph--
(I) in the first sentence, by
striking ``sections 7 and 8'' and
inserting ``section 7''; and
(II) by striking the third sentence;
and
(ii) by striking the second undesignated
paragraph.
(2) Conforming amendments.--
(A) Paragraph (1) of the last proviso of the matter
under the heading ``conservation reserve program'' under
the heading ``Soil Bank Programs'' of title I of the
Department of Agriculture and Farm Credit Administration
Appropriation Act, 1959 (72 Stat. 195; 7 U.S.C. 1831a),
is amended by striking ``Agricultural Conservation
Program'' and inserting ``environmental quality
incentives program established under chapter 4 of
subtitle D of title XII of the Food Security Act of
1985''.
(B) Section 4 of the Cooperative Forestry Assistance
Act of 1978 (16 U.S.C. 2103) is amended by striking ``as
added by the Agriculture and Consumer Protection Act of
1973'' each place it appears in subsections (d) and (i)
and inserting ``as in effect before the amendment made
by section 336(d)(1) of the Federal Agriculture
Improvement and Reform Act of 1996''.
(C) Section 226(b)(4) of the Department of
Agriculture Reorganization Act of 1994 (7 U.S.C.
6932(b)(4)) is amended by striking ``and the
agricultural conservation program under the Soil
Conservation and Domestic Allotment Act (16 U.S.C. 590g
et seq.)''.
(D) Section 246(b)(8) of the Department of
Agriculture Reorganization Act of 1994 (7 U.S.C.
6962(b)(8)) is amended by striking ``and the
agricultural conservation program under the Soil
Conservation and Domestic Allotment Act (16 U.S.C. 590g
et seq.)''.
(E) Section 1271(c)(3)(C) of the Food, Agriculture,
Conservation, and Trade Act of 1990 (16 U.S.C.
2106a(c)(3)(C)) is amended by striking ``Agricultural
Conservation Program established under section 16(b) of
the Soil Conservation and Domestic Allotment Act (16
U.S.C. 590h, 590l, or 590p)'' and inserting
``environmental quality incentives program established
under chapter 4 of subtitle D of title XII of the Food
Security Act of 1985''.
(F) Section 304(a) of the Lake Champlain Special
Designation Act of 1990 (Public Law 101-596; 33 U.S.C.
1270 note) is amended--
(i) in the subsection heading, by striking
``Special Project Area Under the Agricultural
Conservation Program'' and inserting ``Priority
Area Under
[[Page 110 STAT. 1006]]
the Environmental Quality Incentives Program'';
and
(ii) in paragraph (1), by striking ``special
project area under the Agricultural Conservation
Program established under section 8(b) of the Soil
Conservation and Domestic Allotment Act (16 U.S.C.
590h(b))'' and inserting ``priority area under the
environmental quality incentives program
established under chapter 4 of subtitle D of title
XII of the Food Security Act of 1985''.
(G) Section 6 of the Department of Agriculture
Organic Act of 1956 (70 Stat. 1033) <<NOTE: 16 USC 590h-
4.>> is amended by striking subsection (b).
(b) Great Plains Conservation Program.--
(1) Elimination.--Section 16 of the Soil Conservation and
Domestic Allotment Act (16 U.S.C. 590p) is repealed.
(2) Conforming amendments.--
(A) The Agricultural Adjustment Act of 1938 is
amended by striking ``Great Plains program'' each place
it appears in sections 344(f)(8) and 377 (7 U.S.C.
1344(f)(8) and 1377) and inserting ``environmental
quality incentives program established under chapter 4
of subtitle D of title XII of the Food Security Act of
1985''.
(B) Section 246(b) of the Department of Agriculture
Reorganization Act of 1994 (7 U.S.C. 6962(b)) is amended
by striking paragraph (2).
(c) Colorado River Basin Salinity Control Program.--
(1) In general.--Section 202 of the Colorado River Basin
Salinity Control Act (43 U.S.C. 1592) is amended by striking
subsection (c) and inserting the following:
``(c) Salinity Control Measures.--The Secretary of Agriculture shall
carry out salinity control measures (including watershed enhancement and
cost-share measures with livestock and crop producers) in the Colorado
River Basin as part of the environmental quality incentives program
established under chapter 4 of subtitle D of title XII of the Food
Security Act of 1985.''.
(2) Funds.--Section 205 of the Colorado River Basin Salinity
Control Act (43 U.S.C. 1595) is amended--
(A) in subsection (a), by striking ``pursuant to
section 202(c)(2)(C)''; and
(B) by adding at the end the following:
``(f) Funds.--The Secretary may expend funds available in the Basin
Funds referred to in this section to carry out cost-share salinity
measures in a manner that is consistent with the cost allocations
required under this section.''.
(3) Conforming amendment.--Section 246(b)(6) of the
Department of Agriculture Reorganization Act of 1994 (7 U.S.C.
6962(b)(6)) is amended by striking ``program'' and inserting
``measures''.
(d) Rural Environmental Conservation Program.--
(1) Elimination.--Title X of the Agricultural Act of 1970
(16 U.S.C. 1501 et seq.) is repealed.
(2) Conforming amendments.--Section 246 of the Department of
Agriculture Reorganization Act of 1994 (7 U.S.C. 6962) (as
amended by subsection (b)(2)(B)) is amended--
(A) in subsection (b)--
(i) by striking paragraph (1); and
[[Page 110 STAT. 1007]]
(ii) by redesignating paragraphs (3) through
(8) as paragraphs (1) through (6), respectively;
and
(B) in subsection (c), by striking ``(2), (3), (4),
and (6)'' and inserting ``(1), (2), and (4)''.
(e) Other Conservation Provisions.--Subtitle F of title XII of the
Food Security Act of 1985 (16 U.S.C. 2005a and 2101 note) is repealed.
(f) Resource Conservation.--
(1) Elimination.--Subtitles A, B, D, E, and F of title XV of
the Agriculture and Food Act of 1981 (95 Stat. 1328; 16 U.S.C.
3401 et seq.) are repealed.
(2) Conforming amendment.--Section 739 of the Agriculture,
Rural Development, Food and Drug Administration, and Related
Agencies Appropriations Act, 1992 (7 U.S.C. 2272a), is repealed.
(g) Technical Amendment.--The first sentence of the matter under the
heading ``Commodity Credit Corporation'' of Public Law 99-263 (100 Stat.
59; 16 U.S.C. 3841 note) is amended by striking ``prices: Provided
further,'' and all that follows through ``Acts.'' and inserting
``prices.''.
(h) Agricultural Water Quality Incentives Program.--Chapter 2 of
subtitle D of title XII of the Food Security Act of 1985 (16 U.S.C. 3838
et seq.) is repealed.
Subtitle E--Conservation Funding and Administration
SEC. 341. CONSERVATION FUNDING AND ADMINISTRATION.
Subtitle E of title XII of the Food Security Act of 1985 (16 U.S.C.
3841 et seq.) is amended to read as follows:
``Subtitle E--Funding and Administration
``SEC. 1241. <<NOTE: 16 USC 3841.>> FUNDING.
``(a) Mandatory Expenses.--For each of fiscal years 1996 through
2002, the Secretary shall use the funds of the Commodity Credit
Corporation to carry out the programs authorized by--
``(1) subchapter B of chapter 1 of subtitle D (including
contracts extended by the Secretary pursuant to section 1437 of
the Food, Agriculture, Conservation, and Trade Act of 1990
(Public Law 101-624; 16 U.S.C. 3831 note));
``(2) subchapter C of chapter 1 of subtitle D; and
``(3) chapter 4 of subtitle D.
``(b) Environmental Quality Incentives Program.--
``(1) In general.--Of the funds of the Commodity Credit
Corporation, the Secretary shall make available $130,000,000 for
fiscal year 1996, and $200,000,000 for each of fiscal years 1997
through 2002, for providing technical assistance, cost-share
payments, incentive payments, and education under the
environmental quality incentives program under chapter 4 of
subtitle D.
``(2) Livestock production.--For each of fiscal years 1996
through 2002, 50 percent of the funding available for technical
assistance, cost-share payments, incentive payments, and edu
[[Page 110 STAT. 1008]]
cation under the environmental quality incentives program shall
be targeted at practices relating to livestock production.
``SEC. 1242. <<NOTE: 16 USC 3842.>> USE OF OTHER AGENCIES.
``(a) Committees.--In carrying out subtitles B, C, and D, the
Secretary shall use the services of local, county, and State committees
established under section 8(b) of the Soil Conservation and Domestic
Allotment Act (16 U.S.C. 590h(b)).
``(b) Other Agencies.--
``(1) Use.--In carrying out subtitles C and D, the Secretary
may utilize the services of the Natural Resources Conservation
Service and the Forest Service, the Fish and Wildlife Service,
State forestry agencies, State fish and game agencies, land-
grant colleges, local, county, and State committees established
under section 8(b) of the Soil Conservation and Domestic
Allotment Act (16 U.S.C. 590h), soil and water conservation
districts, and other appropriate agencies.
``(2) Consultation.--In carrying out subtitle D at the State
and county levels, the Secretary shall consult with, to the
extent practicable, the Fish and Wildlife Service, State
forestry agencies, State fish and game agencies, land-grant
colleges, soil-conservation districts, and other appropriate
agencies.
``SEC. 1243. <<NOTE: 16 USC 3843.>> ADMINISTRATION.
``(a) Plans.--The Secretary shall, to the extent practicable, avoid
duplication in--
``(1) the conservation plans required for--
``(A) highly erodible land conservation under
subtitle B;
``(B) the conservation reserve program established
under subchapter B of chapter 1 of subtitle D; and
``(C) the wetlands reserve program established under
subchapter C of chapter 1 of subtitle D; and
``(2) the environmental quality incentives program
established under chapter 4 of subtitle D.
``(b) Acreage Limitation.--
``(1) In general.--The Secretary shall not enroll more than
25 percent of the cropland in any county in the programs
administered under the conservation reserve and wetlands reserve
programs established under subchapters B and C, respectively, of
chapter 1 of subtitle D. Not more than 10 percent of the
cropland in a county may be subject to an easement acquired
under the subchapters.
``(2) Exception.--The Secretary may exceed the limitations
in paragraph (1) if the Secretary determines that--
``(A) the action would not adversely affect the
local economy of a county; and
``(B) operators in the county are having
difficulties complying with conservation plans
implemented under section 1212.
``(3) Shelterbelts and windbreaks.--The limitations
established under this subsection shall not apply to cropland
that is subject to an easement under chapter 1 or 3 of subtitle
D that is used for the establishment of shelterbelts and
windbreaks.
``(c) Tenant Protection.--Except for a person who is a tenant on
land that is subject to a conservation reserve contract that has been
extended by the Secretary, the Secretary shall provide
[[Page 110 STAT. 1009]]
adequate safeguards to protect the interests of tenants and
sharecroppers, including provision for sharing, on a fair and equitable
basis, in payments under the programs established under subtitles B
through D.
``(d) Provision of Technical Assistance by Other Sources.--In the
preparation and application of a conservation compliance plan under
subtitle B or similar plan required as a condition for assistance from
the Department of Agriculture, the Secretary shall permit persons to
secure technical assistance from approved sources, as determined by the
Secretary, other than the Natural Resources Conservation Service. If the
Secretary rejects a technical determination made by such a source, the
basis of the Secretary's determination must be supported by documented
evidence.
``(e) Regulations.--Not later than 90 days after the date of
enactment of the Federal Agriculture Improvement and Reform Act of 1996,
the Secretary shall issue regulations to implement the conservation
reserve and wetlands reserve programs established under chapter 1 of
subtitle D.''.
SEC. 342. STATE TECHNICAL COMMITTEES.
(a) Composition.--Section 1261(c) of the Food Security Act of 1985
(16 U.S.C. 3861(c))--
(1) in paragraph (7), by striking ``and'' at the end;
(2) in paragraph (8), by striking the period at the end and
inserting a semicolon; and
(3) by adding at the end the following:
``(9) agricultural producers with demonstrable conservation
expertise;
``(10) nonprofit organizations with demonstrable
conservation expertise;
``(11) persons knowledgeable about conservation techniques;
and
``(12) agribusiness.''.
(b) Responsibilities.--Section 1262 of the Food Security Act of 1985
(16 U.S.C. 3862) is amended--
(1) in subsection (a), by adding at the end the following:
``Each State technical committee shall provide public notice of,
and permit public attendance at meetings considering, issues of
concern related to carrying out this title.'';
(2) in subsection (b)(1), by adding at the end the
following: ``Each State technical committee shall establish
criteria and guidelines for evaluating petitions by agricultural
producers regarding new conservation practices and systems not
already described in field office technical guides.''; and
(3) in subsection (c)--
(A) in paragraph (7), by striking ``and'' at the
end;
(B) by redesignating paragraph (8) as paragraph (9);
and
(C) by inserting after paragraph (7) the following:
``(8) establishing criteria and priorities for State
initiatives under the environmental quality incentives program
under chapter 4 of subtitle D; and''.
SEC. 343. <<NOTE: 16 USC 3862 note.>> PUBLIC NOTICE AND COMMENT FOR
REVISIONS TO CERTAIN STATE TECHNICAL GUIDES.
After the date of enactment of this Act, the Secretary of
Agriculture shall provide for public notice and comment under section
[[Page 110 STAT. 1010]]
553 of title 5, United States Code, with regard to any future revisions
to those provisions of the Natural Resources Conservation Service State
technical guides that are used to carry out subtitles A, B, and C of
title XII of the Food Security Act of 1985 (16 U.S.C. 3801 et seq.).
Subtitle F <<NOTE: National Natural Resources Conservation Foundation
Act.>> --National Natural Resources Conservation Foundation
SEC. 351. <<NOTE: 16 USC 5801 note.>> SHORT TITLE.
This subtitle may be cited as the ``National Natural Resources
Conservation Foundation Act''.
SEC. 352. <<NOTE: 16 USC 5801.>> DEFINITIONS.
In this subtitle (unless the context otherwise requires):
(1) Board.--The term ``Board'' means the Board of Trustees
established under section 354.
(2) Department.--The term ``Department'' means the
Department of Agriculture.
(3) Foundation.--The term ``Foundation'' means the National
Natural Resources Conservation Foundation established by section
353(a).
(4) Secretary.--The term ``Secretary'' means the Secretary
of Agriculture.
SEC. 353. <<NOTE: 16 USC 5802.>> NATIONAL NATURAL RESOURCES CONSERVATION
FOUNDATION.
(a) Establishment.--A National Natural Resources Conservation
Foundation is established as a charitable and nonprofit corporation for
charitable, scientific, and educational purposes specified in subsection
(b). The Foundation is not an agency or instrumentality of the United
States.
(b) Duties.--The Foundation shall--
(1) promote innovative solutions to the problems associated
with the conservation of natural resources on private lands,
particularly with respect to agriculture and soil and water
conservation;
(2) promote voluntary partnerships between government and
private interests in the conservation of natural resources;
(3) conduct research and undertake educational activities,
conduct and support demonstration projects, and make grants to
State and local agencies and nonprofit organizations;
(4) provide such other leadership and support as may be
necessary to address conservation challenges, such as the
prevention of excessive soil erosion, the enhancement of soil
and water quality, and the protection of wetlands, wildlife
habitat, and strategically important farmland subject to urban
conversion and fragmentation;
(5) encourage, accept, and administer private gifts of money
and real and personal property for the benefit of, or in
connection with, the conservation and related activities and
services of the Department, particularly the Natural Resources
Conservation Service;
(6) undertake, conduct, and encourage educational,
technical, and other assistance, and other activities, that
support the conservation and related programs administered by
the
[[Page 110 STAT. 1011]]
Department (other than activities carried out on National Forest
System lands), particularly the Natural Resources Conservation
Service, except that the Foundation may not enforce or
administer a regulation of the Department; and
(7) raise private funds to promote the purposes of the
Foundation.
(c) Limitations and Conflicts of Interest.--
(1) Political activities.--The Foundation shall not
participate or intervene in a political campaign on behalf of
any candidate for public office.
(2) Conflicts of interest.--No director, officer, or
employee of the Foundation shall participate, directly or
indirectly, in the consideration or determination of any
question before the Foundation affecting--
(A) the financial interests of the director,
officer, or employee; or
(B) the interests of any corporation, partnership,
entity, organization, or other person in which the
director, officer, or employee--
(i) is an officer, director, or trustee; or
(ii) has any direct or indirect financial
interest.
(3) Legislation or government action or policy.--No funds of
the Foundation may be used in any manner for the purpose of
influencing legislation or government action or policy.
(4) Litigation.--No funds of the Foundation may be used to
bring or join an action against the United States.
SEC. 354. <<NOTE: 16 USC 5803.>> COMPOSITION AND OPERATION.
(a) Composition.--The Foundation shall be administered by a Board of
Trustees that shall consist of 9 voting members, each of whom shall be a
United States citizen and not a Federal officer. The Board shall be
composed of--
(1) individuals with expertise in agricultural conservation
policy matters;
(2) a representative of private sector organizations with a
demonstrable interest in natural resources conservation;
(3) a representative of statewide conservation
organizations;
(4) a representative of soil and water conservation
districts;
(5) a representative of organizations outside the Federal
Government that are dedicated to natural resources conservation
education; and
(6) a farmer or rancher.
(b) Nongovernmental Employees.--Service as a member of the Board
shall not constitute employment by, or the holding of, an office of the
United States for the purposes of any Federal law.
(c) Membership.--
(1) Initial members.--The Secretary shall appoint 9 persons
who meet the criteria established under subsection (a) as the
initial members of the Board and designate 1 of the members as
the initial chairperson for a 2-year term.
(2) Terms of office.--
(A) In general.--A member of the Board shall serve
for a term of 3 years, except that the members appointed
[[Page 110 STAT. 1012]]
to the initial Board shall serve, proportionately, for
terms of 1, 2, and 3 years, as determined by the
Secretary.
(B) Limitation on terms.--No individual may serve
more than 2 consecutive 3-year terms as a member of the
Board.
(3) Subsequent members.--The initial members of the Board
shall adopt procedures in the constitution of the Foundation for
the nomination and selection of subsequent members of the Board.
The procedures shall require that each member, at a minimum,
meets the criteria established under subsection (a) and shall
provide for the selection of an individual, who is not a Federal
officer or a member of the Board.
(d) Chairperson.--After the appointment of an initial chairperson
under subsection (c)(1), each succeeding chairperson of the Board shall
be elected by the members of the Board for a 2-year term.
(e) Vacancies.--A vacancy on the Board shall be filled by the Board
not later than 60 days after the occurrence of the vacancy.
(f) Compensation.--A member of the Board shall receive no
compensation from the Foundation for the service of the member on the
Board.
(g) Travel Expenses.--While away from the home or regular place of
business of a member of the Board in the performance of services for the
Board, the member shall be allowed travel expenses paid by the
Foundation, including per diem in lieu of subsistence, at the same rate
as a person employed intermittently in the Government service is allowed
under section 5703 of title 5, United States Code.
SEC. 355. <<NOTE: 16 USC 5804.>> OFFICERS AND EMPLOYEES.
(a) In General.--The Board may--
(1) appoint, hire, and discharge the officers and employees
of the Foundation, other than appoint the initial Executive
Director of the Foundation;
(2) adopt a constitution and bylaws for the Foundation that
are consistent with the purposes of this subtitle; and
(3) undertake any other activities that may be necessary to
carry out this subtitle.
(b) Officers and Employees.--
(1) Appointment and hiring.--An officer or employee of the
Foundation--
(A) shall not, by virtue of the appointment or
employment of the officer or employee, be considered a
Federal employee for any purpose, including the
provisions of title 5, United States Code, governing
appointments in the competitive service, except that
such an individual may participate in the Federal
employee retirement system as if the individual were a
Federal employee; and
(B) may not be paid by the Foundation a salary in
excess of $125,000 per year.
(2) Executive director.--
(A) Initial director.--The Secretary shall appoint
an individual to serve as the initial Executive Director
of the Foundation who shall serve, at the direction of
the Board, as the chief operating officer of the
Foundation.
(B) Subsequent directors.--The Board shall appoint
each subsequent Executive Director of the Foundation who
[[Page 110 STAT. 1013]]
shall serve, at the direction of the Board, as the chief
operating officer of the Foundation.
(C) Qualifications.--The Executive Director shall be
knowledgeable and experienced in matters relating to
natural resources conservation.
SEC. 356. <<NOTE: 16 USC 5805.>> CORPORATE POWERS AND OBLIGATIONS OF THE
FOUNDATION.
(a) In General.--The Foundation--
(1) may conduct business throughout the United States and
the territories and possessions of the United States; and
(2) shall at all times maintain a designated agent who is
authorized to accept service of process for the Foundation, so
that the serving of notice to, or service of process on, the
agent, or mailed to the business address of the agent, shall be
considered as service on or notice to the Foundation.
(b) Seal.--The Foundation shall have an official seal selected by
the Board that shall be judicially noticed.
(c) Powers.--To carry out the purposes of the Foundation under
section 353(b), the Foundation shall have, in addition to the powers
otherwise provided under this subtitle, the usual powers of a
corporation, including the power--
(1) to accept, receive, solicit, hold, administer, and use
any gift, devise, or bequest, either absolutely or in trust, of
real or personal property or any income from, or other interest
in, the gift, devise, or bequest;
(2) to acquire by purchase or exchange any real or personal
property or interest in property, except that funds provided
under section 360 may not be used to purchase an interest in
real property;
(3) unless otherwise required by instrument of transfer, to
sell, donate, lease, invest, reinvest, retain, or otherwise
dispose of any property or income from property;
(4) to borrow money from private sources and issue bonds,
debentures, or other debt instruments, subject to section 359,
except that the aggregate amount of the borrowing and debt
instruments outstanding at any time may not exceed $1,000,000;
(5) to sue and be sued, and complain and defend itself, in
any court of competent jurisdiction, except that a member of the
Board shall not be personally liable for an action in the
performance of services for the Board, except for gross
negligence;
(6) to enter into a contract or other agreement with an
agency of State or local government, educational institution, or
other private organization or person and to make such payments
as may be necessary to carry out the functions of the
Foundation; and
(7) to do any and all acts that are necessary to carry out
the purposes of the Foundation.
(d) Interests in Property.--
(1) Interests in real property.--The Foundation may acquire,
hold, and dispose of lands, waters, or other interests in real
property by donation, gift, devise, purchase, or exchange. An
interest in real property shall be treated, among other things,
as including an easement or other right for the preservation,
conservation, protection, or enhancement of agricultural,
[[Page 110 STAT. 1014]]
natural, scenic, historic, scientific, educational,
inspirational, or recreational resources.
(2) Gifts.--A gift, devise, or bequest may be accepted by
the Foundation even though the gift, devise, or bequest is
encumbered, restricted, or subject to a beneficial interest of a
private person if any current or future interest in the gift,
devise, or bequest is for the benefit of the Foundation.
SEC. 357. <<NOTE: 16 USC 5806.>> ADMINISTRATIVE SERVICES AND SUPPORT.
For each of fiscal years 1996 through 1998, the Secretary may
provide, without reimbursement, personnel, facilities, and other
administrative services of the Department to the Foundation.
SEC. 358. <<NOTE: 16 USC 5807.>> AUDITS AND PETITION OF ATTORNEY GENERAL
FOR EQUITABLE RELIEF.
(a) Audits.--
(1) In general.--The accounts of the Foundation shall be
audited in accordance with Public Law 88-504 (36 U.S.C. 1101 et
seq.), including an audit of lobbying and litigation activities
carried out by the Foundation.
(2) Conforming amendment.--The first section of Public Law
88-504 (36 U.S.C. 1101) is amended by adding at the end the
following:
``(77) The National Natural Resources Conservation
Foundation.''.
(b) Relief With Respect to Certain Foundation Acts or Failure To
Act.--The Attorney General may petition in the United States District
Court for the District of Columbia for such equitable relief as may be
necessary or appropriate, if the Foundation--
(1) engages in, or threatens to engage in, any act,
practice, or policy that is inconsistent with this subtitle; or
(2) refuses, fails, neglects, or threatens to refuse, fail,
or neglect, to discharge the obligations of the Foundation under
this subtitle.
SEC. 359. <<NOTE: 16 USC 5808.>> RELEASE FROM LIABILITY.
(a) In General.--The United States shall not be liable for any debt,
default, act, or omission of the Foundation. The full faith and credit
of the United States shall not extend to the Foundation.
(b) Statement.--An obligation issued by the Foundation, and a
document offering an obligation, shall include a prominent statement
that the obligation is not directly or indirectly guaranteed, in whole
or in part, by the United States (or an agency or instrumentality of the
United States).
SEC. 360. <<NOTE: 16 USC 5809.>> AUTHORIZATION OF APPROPRIATIONS.
There are authorized to be appropriated to the Department to be made
available to the Foundation $1,000,000 for each of fiscal years 1997
through 1999 to initially establish and carry out activities of the
Foundation.
[[Page 110 STAT. 1015]]
Subtitle G--Forestry
SEC. 371. OFFICE OF INTERNATIONAL FORESTRY.
Section 2405 of the Food, Agriculture, Conservation, and Trade Act
of 1990 (7 U.S.C. 6704) is amended by adding at the end the following:
``(d) Authorization of Appropriations.--There are authorized to be
appropriated for each of fiscal years 1996 through 2002 such sums as are
necessary to carry out this section.''.
SEC. 372. COOPERATIVE WORK FOR PROTECTION, MANAGEMENT, AND IMPROVEMENT
OF NATIONAL FOREST SYSTEM.
The penultimate paragraph of the matter under the heading ``FOREST
SERVICE.'' of the first section of the Act of June 30, 1914 (38 Stat.
430, chapter 131; 16 U.S.C. 498), is amended--
(1) by inserting ``, management,'' after ``the protection'';
(2) by striking ``national forests,'' and inserting
``National Forest System,'';
(3) by inserting ``management,'' after ``protection,'' both
places it appears; and
(4) by adding at the end the following: ``Payment for work
undertaken pursuant to this paragraph may be made from any
appropriation of the Forest Service that is available for
similar work if a written agreement so provides and
reimbursement will be provided by a cooperator in the same
fiscal year as the expenditure by the Forest Service. A
reimbursement received from a cooperator that covers the
proportionate share of the cooperator of the cost of the work
shall be deposited to the credit of the appropriation of the
Forest Service from which the payment was initially made or, if
the appropriation is no longer available, to the credit of an
appropriation of the Forest Service that is available for
similar work. <<NOTE: Rules.>> The Secretary of Agriculture
shall establish written rules that establish criteria to be used
to determine whether the acceptance of contributions of money
under this paragraph would adversely affect the ability of an
officer or employee of the Department of Agriculture to carry
out a duty or program of the officer or employee in a fair and
objective manner or would compromise, or appear to compromise,
the integrity of the program, officer, or
employee. <<NOTE: Rules.>> The Secretary of Agriculture shall
establish written rules that protect the interests of the Forest
Service in cooperative work agreements.''.
SEC. 373. FORESTRY INCENTIVES PROGRAM.
Section 4 of the Cooperative Forestry Assistance Act of 1978 (16
U.S.C. 2103) is amended--
(1) in subsection (j), by striking ``annually'' and
inserting ``for each of fiscal years 1996 through 2002''; and
(2) by striking subsection (k).
SEC. 374. OPTIONAL STATE GRANTS FOR FOREST LEGACY PROGRAM.
Section 7 of the Cooperative Forestry Assistance Act of 1978 (16
U.S.C. 2103c) is amended--
(1) by redesignating subsection (l) as subsection (m); and
(2) by inserting after subsection (k) the following:
``(l) Optional State Grants.--
[[Page 110 STAT. 1016]]
``(1) In general.--The Secretary shall, at the request of a
participating State, provide a grant to the State to carry out
the Forest Legacy Program in the State.
``(2) Administration.--If a State elects to receive a grant
under this subsection--
``(A) the Secretary shall use a portion of the funds
made available under subsection (m), as determined by
the Secretary, to provide a grant to the State; and
``(B) the State shall use the grant to carry out the
Forest Legacy Program in the State, including the
acquisition by the State of lands and interests in
lands.''.
Subtitle H--Miscellaneous Conservation Provisions
SEC. 381. CONSERVATION ACTIVITIES OF COMMODITY CREDIT CORPORATION.
(a) In General.--Section 5 of the Commodity Credit Corporation
Charter Act (15 U.S.C. 714c) is amended--
(1) by redesignating subsection (g) as subsection (h); and
(2) by inserting after subsection (f) the following:
``(g) Carry out conservation or environmental programs authorized by
law.''.
(b) <<NOTE: 15 USC 714c note.>> Effective Date.--The amendments made
by subsection (a) shall become effective on January 1, 1997.
SEC. 382. FLOODPLAIN EASEMENTS.
Section 403 of the Agricultural Credit Act of 1978 (16 U.S.C. 2203)
is amended by inserting ``, including the purchase of floodplain
easements,'' after ``emergency measures''.
SEC. 383. RESOURCE CONSERVATION AND DEVELOPMENT PROGRAM.
Section 1538 of the Agriculture and Food Act of 1981 (16 U.S.C.
3461) is amended by striking ``1991 through 1995'' and inserting ``1996
through 2002''.
SEC. 384. REPEAL OF REPORT REQUIREMENT.
Section 1342 of title 44, United States Code, is repealed.
SEC. 385. <<NOTE: 7 USC 7334.>> FLOOD RISK REDUCTION.
(a) In General.--During fiscal years 1996 through 2002, the
Secretary of Agriculture (referred to in this section as the
``Secretary'') may enter into a contract with a producer on a farm who
has contract acreage under the Agricultural Market Transition Act that
is frequently flooded.
(b) Duties of Producers.--Under the terms of the contract, with
respect to acres that are subject to the contract, the producer must
agree to--
(1) the termination of any contract acreage and production
flexibility contract under the Agricultural Market Transition
Act;
(2) forgo loans for contract commodities, oilseeds, and
extra long staple cotton;
(3) not apply for crop insurance issued or reinsured by the
Secretary;
(4) comply with applicable highly erodible land and wetlands
conservation compliance requirements established under
[[Page 110 STAT. 1017]]
title XII of the Food Security Act of 1985 (16 U.S.C. 3801 et
seq.);
(5) not apply for any conservation program payments from the
Secretary;
(6) not apply for disaster program benefits provided by the
Secretary; and
(7) refund the payments, with interest, issued under the
flood risk reduction contract to the Secretary, if the producer
violates the terms of the contract or if the producer transfers
the property to another person who violates the contract.
(c) Duties of the Secretary.--In return for a contract entered into
by a producer under this section, the Secretary shall pay the producer
an amount that is not more than 95 percent of projected contract
payments under the Agricultural Market Transition Act that the Secretary
estimates the producer would otherwise have received during the period
beginning at the time the contract is entered into under this section
and ending September 30, 2002.
(d) Commodity Credit Corporation.--The Secretary shall carry out the
program authorized by this section (other than subsection (e)) through
the Commodity Credit Corporation.
(e) Additional Payments.--
(1) In general.--Subject to the availability of advanced
appropriations, the Secretary may make payments to a producer
described in subsection (a), in addition to the payments
provided under subsection (c), to offset other estimated Federal
Government outlays on frequently flooded land.
(2) Authorization of appropriations.--There are authorized
to be appropriated such sums as are necessary to carry out
paragraph (1).
(f) Limitation on Payments.--Amounts made available for production
flexibility contracts under section 113 shall be reduced by an amount
that is equal to the contract payments that producers forgo under
subsection (b)(1) of this section.
SEC. 386. <<NOTE: 16 USC 2005b.>> CONSERVATION OF PRIVATE GRAZING LAND.
(a) Findings.--Congress finds that--
(1) private grazing land constitutes nearly \1/2\ of the
non-Federal land of the United States and is basic to the
environmental, social, and economic stability of rural
communities;
(2) private grazing land contains a complex set of
interactions among soil, water, air, plants, and animals;
(3) grazing land constitutes the single largest watershed
cover type in the United States and contributes significantly to
the quality and quantity of water available for all of the many
uses of the land;
(4) private grazing land constitutes the most extensive
wildlife habitat in the United States;
(5) private grazing land can provide opportunities for
improved nutrient management from land application of animal
manures and other by-product nutrient resources;
(6) owners and managers of private grazing land need to
continue to recognize conservation problems when the problems
arise and receive sound technical assistance to improve or
conserve grazing land resources to meet ecological and economic
demands;
(7) new science and technology must continually be made
available in a practical manner so owners and managers of
[[Page 110 STAT. 1018]]
private grazing land may make informed decisions concerning
vital grazing land resources;
(8) agencies of the Department with private grazing land
responsibilities are the agencies that have the expertise and
experience to provide technical assistance, education, and
research to owners and managers of private grazing land for the
long-term productivity and ecological health of grazing land;
(9) although competing demands on private grazing land
resources are greater than ever before, assistance to private
owners and managers of private grazing land is currently limited
and does not meet the demand and basic need for adequately
sustaining or enhancing the private grazing land resources; and
(10) private grazing land can be enhanced to provide many
benefits to all citizens of the United States through voluntary
cooperation among owners and managers of the land, local
conservation districts, and the agencies of the Department
responsible for providing assistance to owners and managers of
land and to conservation districts.
(b) Purpose.--It is the purpose of this section to authorize the
Secretary to provide a coordinated technical, educational, and related
assistance program to conserve and enhance private grazing land
resources and provide related benefits to all citizens of the United
States by--
(1) establishing a coordinated and cooperative Federal,
State, and local grazing conservation program for management of
private grazing land;
(2) strengthening technical, educational, and related
assistance programs that provide assistance to owners and
managers of private grazing land;
(3) conserving and improving wildlife habitat on private
grazing land;
(4) conserving and improving fish habitat and aquatic
systems through grazing land conservation treatment;
(5) protecting and improving water quality;
(6) improving the dependability and consistency of water
supplies;
(7) identifying and managing weed, noxious weed, and brush
encroachment problems on private grazing land; and
(8) integrating conservation planning and management
decisions by owners and managers of private grazing land, on a
voluntary basis.
(c) Definitions.--In this section:
(1) Department.--The term ``Department'' means the
Department of Agriculture.
(2) Private grazing land.--The term ``private grazing land''
means private, State-owned, tribally-owned, and any other non-
federally owned rangeland, pastureland, grazed forest land, and
hay land.
(3) Secretary.--The term ``Secretary'' means the Secretary
of Agriculture.
(d) Private Grazing Land Conservation Assistance.--
(1) Assistance to grazing landowners and others.--Subject to
the availability of appropriations for this section, the
Secretary shall establish a voluntary program to provide
technical, educational, and related assistance to owners and
managers of private grazing land and public agencies, through
[[Page 110 STAT. 1019]]
local conservation districts, to enable the landowners,
managers, and public agencies to voluntarily carry out
activities that are consistent with this section, including--
(A) maintaining and improving private grazing land
and the multiple values and uses that depend on private
grazing land;
(B) implementing grazing land management
technologies;
(C) managing resources on private grazing land,
including--
(i) planning, managing, and treating private
grazing land resources;
(ii) ensuring the long-term sustainability of
private grazing land resources;
(iii) harvesting, processing, and marketing
private grazing land resources; and
(iv) identifying and managing weed, noxious
weed, and brush encroachment problems;
(D) protecting and improving the quality and
quantity of water yields from private grazing land;
(E) maintaining and improving wildlife and fish
habitat on private grazing land;
(F) enhancing recreational opportunities on private
grazing land;
(G) maintaining and improving the aesthetic
character of private grazing lands; and
(H) identifying the opportunities and encouraging
the diversification of private grazing land enterprises.
(2) Program elements.--
(A) Funding.--If funding is provided to carry out
this section, it shall be provided through a specific
line-item in the annual appropriations for the Natural
Resources Conservation Service.
(B) Technical assistance and education.--Personnel
of the Department trained in pasture and range
management shall be made available under the program to
deliver and coordinate technical assistance and
education to owners and managers of private grazing
land, at the request of the owners and managers.
(e) Grazing Technical Assistance Self-Help.--
(1) Findings.--Congress finds that--
(A) there is a severe lack of technical assistance
for farmers and ranchers who graze livestock;
(B) Federal budgetary constraints preclude any
significant expansion, and may force a reduction of,
current levels of technical support; and
(C) farmers and ranchers have a history of
cooperatively working together to address common needs
in the promotion of their products and in the drainage
of wet areas through drainage districts.
(2) Establishment of grazing demonstration.--In accordance
with paragraph (3), the Secretary may establish 2 grazing
management demonstration districts at the recommendation of the
grazing lands conservation initiative steering committee.
(3) Procedure.--
[[Page 110 STAT. 1020]]
(A) Proposal.--Within a reasonable time after the
submission of a request of an organization of farmers or
ranchers engaged in grazing, the Secretary shall propose
that a grazing management district be established.
(B) Funding.--The terms and conditions of the
funding and operation of the grazing management district
shall be proposed by the producers.
(C) Approval.--The Secretary shall approve the
proposal if the Secretary determines that the proposal--
(i) is reasonable;
(ii) will promote sound grazing practices; and
(iii) contains provisions similar to the
provisions contained in the beef promotion and
research order issued under section 4 of the Beef
Research and Information Act (7 U.S.C. 2903) in
effect on the date of enactment of this Act.
(D) Area included.--The area proposed to be included
in a grazing management district shall be determined by
the Secretary on the basis of a petition by farmers or
ranchers.
(E) Authorization.--The Secretary may use authority
under the Agricultural Adjustment Act (7 U.S.C. 601 et
seq.), reenacted with amendments by the Agricultural
Marketing Agreement Act of 1937, to operate, on a
demonstration basis, a grazing management district.
(F) Activities.--The activities of a grazing
management district shall be scientifically sound
activities, as determined by the Secretary in
consultation with a technical advisory committee
composed of ranchers, farmers, and technical experts.
(f) Authorization of Appropriations.--There are authorized to be
appropriated to carry out this section--
(1) $20,000,000 for fiscal year 1996;
(2) $40,000,000 for fiscal year 1997; and
(3) $60,000,000 for fiscal year 1998 and each subsequent
fiscal year.
SEC. 387. <<NOTE: Establishment. 16 USC 3836a.>> WILDLIFE HABITAT
INCENTIVES PROGRAM.
(a) In General.--The Secretary of Agriculture, in consultation with
the State technical committees established under section 1261 of the
Food Security Act of 1985 (16 U.S.C. 3861), shall establish a program
under the Natural Resources Conservation Service to be known as the
``Wildlife Habitat Incentive Program''.
(b) Cost-Share Payments.--Under the program, the Secretary shall
make cost-share payments to landowners to develop upland wildlife,
wetland wildlife, threatened and endangered species, fish, and other
types of wildlife habitat approved by the Secretary.
(c) Funding.--To carry out this section, a total of $50,000,000
shall be made available for fiscal years 1996 through 2002 from funds
made available to carry out subchapter B of chapter 1 of subtitle D of
title XII of the Food Security Act of 1985 (16 U.S.C. 3831 et seq.).
SEC. 388. <<NOTE: Establishment. 16 USC 3830 note.>> FARMLAND PROTECTION
PROGRAM.
(a) In General.--The Secretary of Agriculture shall establish and
carry out a farmland protection program under which the Secretary shall
purchase conservation easements or other interests in not less than
170,000, nor more than 340,000, acres of land
[[Page 110 STAT. 1021]]
with prime, unique, or other productive soil that is subject to a
pending offer from a State or local government for the purpose of
protecting topsoil by limiting nonagricultural uses of the land.
(b) Conservation Plan.--Any highly erodible cropland for which a
conservation easement or other interest is purchased under this section
shall be subject to the requirements of a conservation plan that
requires, at the option of the Secretary, the conversion of the cropland
to less intensive uses.
(c) Funding.--The Secretary shall use not more than $35,000,000 of
the funds of the Commodity Credit Corporation to carry out this section.
SEC. 389. <<NOTE: National Forest Service.>> INTERIM MORATORIUM ON
BYPASS FLOWS.
(a) Moratorium.--There shall be an 18-month <<NOTE: Water. 16 USC
526 note.>> moratorium on any Forest Service decision to require bypass
flows or any other relinquishment of the unimpaired use of a decreed
water right as a condition of renewal or reissuance of a land use
authorization permit.
(b) Limitations.--Subsection (a) shall not affect--
(1) obligations or authority of the Secretary of Agriculture
to protect public health and safety; and
(2) obligations or authority under the Endangered Species
Act of 1973 (16 U.S.C. 1531 et seq.), or applicable State law.
(c) Rules of Construction.--
(1) Existing non-federal water rights.--Nothing in this
section prevents or inhibits the exercise of the use and
operation of existing non-Federal water rights on or above the
National Forest land that require land use authorization permits
from the Forest Service to access water supply facilities.
(2) Renewal or reissuance of expiring land use authorization
for decreed water rights.--Nothing in this section prevents or
inhibits the renewal or reissuance of expiring land use
authorizations for decreed water rights. The Forest Service may
extend, as needed, any expiring land use authorization for such
time as is necessary to incorporate the results of the study
authorized by subsection (d).
(d) Study of Water Rights Across Federal Lands.--
(1) Establishment.--Not later than 60 days after the date of
enactment of this Act, there shall be established a Water Rights
Task Force to study the subjects described in paragraph (3).
(2) Membership.--The Task Force shall be composed of 7
members appointed as follows:
(A) 1 member shall be appointed by the Secretary of
Agriculture.
(B) 2 members shall be appointed by the Speaker of
the House of Representatives and 1 member shall be
appointed by the Minority Leader of the House of
Representatives.
(C) 2 members shall be appointed by the Majority
Leader of the Senate and 1 member shall be appointed by
the Minority Leader of the Senate.
(3) Subjects to be studied.--The Task Force shall study and
make recommendations on--
(A) whether Federal water rights should be acquired
for environmental protection on National Forest land;
[[Page 110 STAT. 1022]]
(B) measures necessary to protect the free exercise
of non-Federal water rights requiring easements and
permits from the Forest Service;
(C) the protection of minimum instream flows for
environmental and watershed management purposes on
National Forest land through purchases or exchanges from
willing sellers in accordance with State law;
(D) the effects of any of the recommendations made
under this paragraph on existing State laws,
regulations, and customs of water usage; and
(E) measures that would be useful in avoiding or
resolving conflicts between the Forest Service's
responsibilities for natural resource and environmental
protection, the public interest, and the property rights
and interests of water holders with special use permits
for water facilities, including the study of the Federal
acquisition of water rights, dispute resolution,
mitigation, and compensation.
(4) Final report.--As soon as practicable, but not later
than 1 year, after the date of enactment of this Act, the Task
Force shall provide the final report of the Task Force to--
(A) the Secretary of Agriculture;
(B) the Speaker of the House of Representatives;
(C) the President pro tempore of the Senate;
(D) the Chairman of the Committee on Agriculture of
the House of Representatives;
(E) the Chairman of the Committee on Agriculture,
Nutrition, and Forestry of the Senate;
(F) the Chairman of the Committee on Resources of
the House of Representatives; and
(G) the Chairman of the Committee on Energy and
Natural Resources of the Senate.
(5) Authorization of funds.--The Secretary of Agriculture
shall use funds made available for salaries and administrative
expenses of the Department of Agriculture to carry out this
subsection.
SEC. 390. <<NOTE: Florida.>> EVERGLADES ECOSYSTEM RESTORATION.
(a) In General.--On July 1, 1996, out of any funds in the Treasury
not otherwise appropriated, the Secretary of the Treasury shall provide
$200,000,000 to the Secretary of the Interior to carry out this section.
(b) Entitlement.--The Secretary of the Interior (referred to in this
section as the ``Secretary'')--
(1) shall be entitled to receive the funds made available
under subsection (a);
(2) shall accept the funds; and
(3) shall use the funds to--
(A) conduct restoration activities in the Everglades
ecosystem in South Florida, which shall include the
acquisition of real property and interests in real
property located within the Everglades ecosystem; and
(B) fund resource protection and resource
maintenance activities in the Everglades ecosystem.
(c) Savings Provision.--Nothing in this subsection precludes the
Secretary from transferring funds to the Army Corps of Engineers, the
State of Florida, or the South Florida Water Management District to
carry out subsection (b)(3).
[[Page 110 STAT. 1023]]
(d) Deadline.--The Secretary shall use the funds made available
under subsection (a) for restoration activities referred to in
subsection (b)(3) not later than December 31, 1999.
(e) Report to Congress.--For each of calendar years 1996 through
1999, the Secretary shall submit an annual report to Congress describing
all activities carried out under subsection (b)(3).
(f) Separate and Additional Everglades Restoration Account.--
(1) Establishment.--There is established in the Treasury a
special account (to be known as the ``Everglades Restoration
Account''), which shall consist of such funds as may be
deposited in the account under paragraph (2). The account shall
be separate, and in addition to, funds deposited in the Treasury
under subsection (a).
(2) Source of funds for account.--
(A) Proceeds from surplus property.--
(i) In general.--Subject to subparagraph (B),
the Administrator shall deposit in the special
account all funds received by the Administrator,
on or after the date of enactment of this Act,
from the disposal pursuant to the Federal Property
and Administrative Services Act of 1949 (40 U.S.C.
471 et seq.) of surplus real property located in
the State of Florida.
(ii) Availability and disposition of federal
land.--
(I) Identification.--Any Federal
real property located in the State of
Florida (excluding lands under the
administrative jurisdiction of the
Secretary that are set aside for
conservation purposes) shall be
identified for disposal or exchange
under this subsection and shall be
presumed available for purposes of this
subsection unless the head of the agency
controlling the property determines that
there is a compelling program need for
any property identified by the
Secretary.
(II) Availability.--Property
identified by the Secretary for which
there is no demonstrated compelling
program need shall, not later than 90
days after a request by the Secretary,
be reported to the Administrator and
shall be made available to the
Administrator who shall consider the
property to be surplus property for
purposes of the Federal Property and
Administrative Services Act of 1949 (40
U.S.C. 471 et seq.).
(III) Prioritization of
disposition.--The Administrator may
prioritize the disposition of property
made available under this subparagraph
to permit the property to be sold as
quickly as practicable in a manner that
is consistent with the best interests of
the Federal Government.
(B) Limit on total amount of deposits.--The total
amount of funds deposited in the special account under
subparagraph (A) shall not exceed $100,000,000.
(C) Effect on closure of military installations.--
Nothing in this section alters the disposition of any
proceeds arising from the disposal of real property
pursuant to a base closure law.
[[Page 110 STAT. 1024]]
(3) Use of special account.--Funds in the special account
shall be available to the Secretary until expended under this
paragraph. The Secretary shall use funds in the special account
to assist in the restoration of the Everglades ecosystem in
South Florida through--
(A) subject to paragraph (4), the acquisition of
real property and interests in real property located
within the Everglades ecosystem; and
(B) the funding of resource protection and resource
maintenance activities in the Everglades ecosystem.
(4) State contribution.--The Secretary may not expend any
funds from the special account to acquire a parcel of real
property, or an interest in a parcel of real property, under
paragraph (3)(A) unless the Secretary obtains, or has previously
obtained, a contribution from the State of Florida in an amount
equal to not less than 50 percent of the appraised value of the
parcel or interest to be acquired, as determined by the
Secretary.
(5) Definitions.--In this subsection:
(A) Administrator.--The term ``Administrator'' means
the Administrator of General Services.
(B) Base closure law.--The term ``base closure law''
means each of the following:
(i) The Defense Base Closure and Realignment
Act of 1990 (part A of title XXIX of Public Law
101-510; 10 U.S.C. 2687 note).
(ii) Title II of the Defense Authorization
Amendments and Base Closure and Realignment Act
(Public Law 100-526; 10 U.S.C. 2687 note).
(iii) Section 2687 of title 10, United States
Code.
(iv) Any other similar law enacted after the
date of enactment of this Act.
(C) Everglades ecosystem.--The term ``Everglades
ecosystem'' means the Florida Everglades Restoration
area that extends from the Kissimmee River basin to
Florida Bay.
(D) Excess property.--The term ``excess property''
has the meaning provided in section 3 of the Federal
Property and Administrative Services Act of 1949 (40
U.S.C. 472).
(E) Executive agency.--The term ``executive agency''
has the meaning provided in section 3 of the Federal
Property and Administrative Services Act of 1949 (40
U.S.C. 472).
(F) Special account.--The term ``special account''
means the Everglades Restoration Account established
under paragraph (1).
(G) Surplus property.--The term ``surplus property''
has the meaning provided in section 3 of the Federal
Property and Administrative Services Act of 1949 (40
U.S.C. 472).
(g) Report To Determine the Feasibility of Additional Land
Acquisition and Restoration Activities.--
(1) In general.--The Secretary shall conduct an
investigation to determine what, if any, unreserved and
unappropriated Federal lands (or mineral interests in any such
lands) under the administrative jurisdiction of the Secretary
are suitable
[[Page 110 STAT. 1025]]
for disposal or exchange for the purpose of conducting
restoration activities in the Everglades region.
(2) Conservation lands.--No lands under the administrative
jurisdiction of the Secretary that are set aside for
conservation purposes shall be identified for disposal or
exchange under this subsection.
(3) Florida.--In carrying out this subsection, the Secretary
shall, to the maximum extent practicable, determine which lands
and mineral interests located within the State of Florida are
suitable for disposal or exchange before making the
determination for eligible lands or interests in other States.
(4) Public access.--In carrying out this subsection, the
Secretary shall consider that in disposing of lands, the
Secretary shall retain such interest in the lands as may be
necessary to ensure that the general public is not precluded
from reasonable access to the lands for purposes of fishing,
hunting, or other recreational uses.
(5) Report.--Not later than 1 year after the date of
enactment of this Act, the Secretary shall submit a report to
the Committee on Resources of the House of Representatives and
the Committee on Energy and Natural Resources of the Senate
describing the results of the investigation conducted under this
subsection. The report shall describe the specific parcels
identified under this subsection, establish the priorities for
disposal or exchange among the parcels, and estimate the values
of the parcels.
SEC. 391. <<NOTE: 7 USC 5405.>> AGRICULTURAL AIR QUALITY RESEARCH
OVERSIGHT.
(a) Findings.--Congress finds that--
(1) various studies have alleged that agriculture is a
source of PM-10 emissions;
(2) many of these studies have often been based on erroneous
data;
(3) Federal research activities are currently being
conducted by the Department of Agriculture to determine the true
extent to which agricultural activities contribute to air
pollution and to determine cost-effective ways in which the
agricultural industry can reduce any pollution that exists; and
(4) any Federal policy recommendations that may be issued by
any Federal agency to address air pollution problems related to
agriculture or any other industrial activity should be based on
sound scientific findings that are subject to adequate peer
review and should take into account economic feasibility.
(b) Purpose.--The purpose of this section is to encourage the
Secretary of Agriculture to continue to strengthen vital research
efforts related to agricultural air quality.
(c) Oversight Coordination.--
(1) Intergovernmental cooperation.--The Secretary shall, to
the maximum extent practicable with respect to the Department of
Agriculture and other Federal departments and agencies, ensure
intergovernmental cooperation in research activities related to
agricultural air quality and avoid duplication of the
activities.
(2) Correct data.--The Secretary shall, to the maximum
extent practicable, ensure that the results of any research
related to agricultural air quality conducted by Federal
agencies
[[Page 110 STAT. 1026]]
not report erroneous data with respect to agricultural air
quality.
(d) Task Force.--
(1) Establishment.--The Chief of the National Resources
Conservation Service shall establish a task force to address
agricultural air quality issues.
(2) Composition.--The task force shall be comprised of
employees of the Department of Agriculture, industry
representatives, and other experts in the fields of agriculture
and air quality.
(3) Duties.--The task force shall advise the Secretary with
respect to the role of the Secretary for providing oversight and
coordination related to agricultural air quality.
TITLE IV--NUTRITION ASSISTANCE
SEC. 401. FOOD STAMP PROGRAM.
(a) Disqualification of a Store or Concern.--Section 12(b)(3)(B) of
the Food Stamp Act of 1977 (7 U.S.C. 2021(b)(3)(B)) is amended--
(1) by striking the second parenthetical; and
(2) by striking ``; or'' and inserting the following: ``,
including evidence that--
``(i) the ownership of the store or food
concern was not aware of, did not approve of, did
not benefit from, and was not involved in the
conduct of the violation; and
``(ii)(I) the management of the store or food
concern was not aware of, did not approve of, did
not benefit from, and was not involved in the
conduct of the violation; or
``(II) the management was aware of, approved
of, benefited from, or was involved in the conduct
of no more than 1 previous violation by the store
or food concern; or''.
(b) Employment and Training.--Section 16(h)(1) of the Food Stamp Act
of 1977 (7 U.S.C. 2025(h)(1)) is amended by striking ``1995'' each place
it appears and inserting ``2002''.
(c) Authorization of Pilot Projects.--The last sentence of section
17(b)(1)(A) of the Food Stamp Act of 1977 (7 U.S.C. 2026(b)(1)(A)) is
amended by striking ``1995'' and inserting ``2002''.
(d) Outreach Demonstration Projects.--The first sentence of section
17(j)(1)(A) of the Food Stamp Act of 1977 (7 U.S.C. 2026(j)(1)(A)) is
amended by striking ``1995'' and inserting ``2002''.
(e) Authorization for Appropriations.--The first sentence of section
18(a)(1) of the Food Stamp Act of 1977 (7 U.S.C. 2027(a)(1)) is amended
by striking ``1995'' and inserting ``1997''.
(f) Reauthorization of Puerto Rico Nutrition Assistance Program.--
The first sentence of section 19(a)(1)(A) of the Food Stamp Act of 1977
(7 U.S.C. 2028(a)(1)(A)) is amended by striking ``$974,000,000'' and all
that follows through ``fiscal year 1995'' and inserting ``$1,143,000,000
for fiscal year 1996, $1,174,000,000 for fiscal year 1997,
$1,204,000,000 for fiscal year 1998, $1,236,000,000 for fiscal year
1999, $1,268,000,000 for fiscal year 2000, $1,301,000,000 for fiscal
year 2001, and $1,335,000,000 for fiscal year 2002''.
[[Page 110 STAT. 1027]]
(g) American Samoa.--The Food Stamp Act of 1977 (7 U.S.C. 2011 et
seq.) is amended by adding at the end the following:
``SEC. 24. <<NOTE: 7 USC 2033. Effective date.>> TERRITORY OF AMERICAN
SAMOA.
``Effective October 1, 1995, from amounts made available to carry
out this Act, the Secretary shall pay to the Territory of American Samoa
not more than $5,300,000 for each of fiscal years 1996 through 2002 to
finance 100 percent of the expenditures for the fiscal year for a
nutrition assistance program extended under section 601(c) of Public Law
96-597 (48 U.S.C. 1469d(c)).''.
(h) Assistance for Community Food Projects.--The Food Stamp Act of
1977 (7 U.S.C. 2011 et seq.) (as amended by subsection (g)) is amended
by adding at the end the following:
``SEC. 25. <<NOTE: 7 USC 2034.>> ASSISTANCE FOR COMMUNITY FOOD PROJECTS.
``(a) Definition of Community Food Projects.--In this section, the
term `community food project' means a community-based project that
requires a 1-time infusion of Federal assistance to become self-
sustaining and that is designed to--
``(1) meet the food needs of low-income people;
``(2) increase the self-reliance of communities in providing
for their own food needs; and
``(3) promote comprehensive responses to local food, farm,
and nutrition issues.
``(b) Authority To Provide Assistance.--
``(1) In general.--From amounts made available to carry out
this Act, the Secretary may make grants to assist eligible
private nonprofit entities to establish and carry out community
food projects.
``(2) Limitation on grants.--The total amount of funds
provided as grants under this section may not exceed--
``(A) $1,000,000 for fiscal year 1996; and
``(B) $2,500,000 for each of fiscal years 1997
through 2002.
``(c) Eligible Entities.--To be eligible for a grant under
subsection (b), a private nonprofit entity must--
``(1) have experience in the area of--
``(A) community food work, particularly concerning
small and medium-sized farms, including the provision of
food to people in low-income communities and the
development of new markets in low-income communities for
agricultural producers; or
``(B) job training and business development
activities for food-related activities in low-income
communities;
``(2) demonstrate competency to implement a project, provide
fiscal accountability, collect data, and prepare reports and
other necessary documentation; and
``(3) demonstrate a willingness to share information with
researchers, practitioners, and other interested parties.
``(d) Preference for Certain Projects.--In selecting community food
projects to receive assistance under subsection (b), the Secretary shall
give a preference to projects designed to--
``(1) develop linkages between 2 or more sectors of the food
system;
``(2) support the development of entrepreneurial projects;
``(3) develop innovative linkages between the for-profit and
nonprofit food sectors; or
[[Page 110 STAT. 1028]]
``(4) encourage long-term planning activities and multi-
system, interagency approaches.
``(e) Matching Funds Requirements.--
``(1) Requirements.--The Federal share of the cost of
establishing or carrying out a community food project that
receives assistance under subsection (b) may not exceed 50
percent of the cost of the project during the term of the grant.
``(2) Calculation.--In providing for the non-Federal share
of the cost of carrying out a community food project, the entity
receiving the grant shall provide for the share through a
payment in cash or in kind, fairly evaluated, including
facilities, equipment, or services.
``(3) Sources.--An entity may provide for the non-Federal
share through State government, local government, or private
sources.
``(f) Term of Grant.--
``(1) Single grant.--A community food project may be
supported by only a single grant under subsection (b).
``(2) Term.--The term of a grant under subsection (b) may
not exceed 3 years.
``(g) Technical Assistance and Related Information.--
``(1) Technical assistance.--In carrying out this section,
the Secretary may provide technical assistance regarding
community food projects, processes, and development to an entity
seeking the assistance.
``(2) Sharing Information.--
``(A) In general.--The Secretary may provide for the
sharing of information concerning community food
projects and issues among and between government,
private for-profit and nonprofit groups, and the public
through publications, conferences, and other appropriate
forums.
``(B) Other interested parties.--The Secretary may
share information concerning community food projects
with researchers, practitioners, and other interested
parties.
``(h) Evaluation.--
``(1) In general.--The Secretary shall provide for the
evaluation of the success of community food projects supported
using funds under this section.
``(2) Report.--Not later than January 30, 2002, the
Secretary shall submit a report to Congress regarding the
results of the evaluation.''.
SEC. 402. COMMODITY DISTRIBUTION PROGRAM; COMMODITY SUPPLEMENTAL FOOD
PROGRAM.
(a) Reauthorization.--The first sentence of section 4(a) of the
Agriculture and Consumer Protection Act of 1973 (Public Law 93-86; 7
U.S.C. 612c note) is amended by striking ``1995'' and inserting
``2002''.
(b) Funding.--Section 5 of the Agriculture and Consumer Protection
Act of 1973 (Public Law 93-86; 7 U.S.C. 612c note) is amended--
(1) in subsection (a)(2), by striking ``1995'' and inserting
``2002'';
(2) in subsection (d)(2), by striking ``1995'' and inserting
``2002''; and
(3) by adding at the end the following:
[[Page 110 STAT. 1029]]
``(l) Carried-Over Funds.--Not more than 20 percent of any commodity
supplemental food program food funds carried over under this section
shall be available for administrative expenses of the program.''.
SEC. 403. EMERGENCY FOOD ASSISTANCE PROGRAM.
(a) Reauthorization.--The first sentence of section 204(a)(1) of the
Emergency Food Assistance Act of 1983 (Public Law 98-8; 7 U.S.C. 612c
note) is amended by striking ``1995'' and inserting ``2002''.
(b) Program Termination.--Section 212 of the Emergency Food
Assistance Act of 1983 (Public Law 98-8; 7 U.S.C. 612c note) is amended
by striking ``1995'' and inserting ``2002''.
(c) Required Purchases of Commodities.--Section 214 of the Emergency
Food Assistance Act of 1983 (Public Law 98-8; 7 U.S.C. 612c note) is
amended--
(1) in the first sentence of subsection (a), by striking
``1995'' and inserting ``2002''; and
(2) in subsection (e), by striking ``1995'' each place it
appears and inserting ``2002''.
SEC. 404. SOUP KITCHEN AND FOOD BANK PROGRAM.
Section 110 of the Hunger Prevention Act of 1988 (Public Law 100-
435; 7 U.S.C. 612c note) is amended--
(1) in the first sentence of subsection (a), by striking
``1995'' and inserting ``2002''; and
(2) in subsection (c)(2)--
(A) in the paragraph heading, by striking ``1992
through 1995'' and inserting ``Subsequent''; and
(B) by striking ``1995'' each place it appears and
inserting ``2002''.
SEC. 405. NATIONAL COMMODITY PROCESSING.
The first sentence of section 1114(a)(2)(A) of the Agriculture and
Food Act of 1981 (7 U.S.C. 1431e(2)(A)) is amended by striking ``1995''
and inserting ``2002''.
TITLE V--AGRICULTURAL PROMOTION
Subtitle A--Commodity Promotion and Evaluation
SEC. 501. <<NOTE: 7 USC 7401.>> COMMODITY PROMOTION AND EVALUATION.
(a) Commodity Promotion Law Defined.--In this section, the term
``commodity promotion law'' means a Federal law that provides for the
establishment and operation of a promotion program regarding an
agricultural commodity that includes a combination of promotion,
research, industry information, or consumer information activities, is
funded by mandatory assessments on producers or processors, and is
designed to maintain or expand markets and uses for the commodity (as
determined by the Secretary). The term includes--
(1) the marketing promotion provisions under section
8c(6)(I) of the Agricultural Adjustment Act (7 U.S.C.
608c(6)(I)), reenacted with amendments by the Agricultural
Marketing Agreement Act of 1937;
[[Page 110 STAT. 1030]]
(2) Public Law 89-502 (7 U.S.C. 2101 et seq.);
(3) title III of Public Law 91-670 (7 U.S.C. 2611 et seq.);
(4) Public Law 93-428 (7 U.S.C. 2701 et seq.);
(5) Public Law 94-294 (7 U.S.C. 2901 et seq.);
(6) subtitle B of title I of Public Law 98-180 (7 U.S.C.
4501 et seq.);
(7) Public Law 98-590 (7 U.S.C. 4601 et seq.);
(8) subtitle B of title XVI of Public Law 99-198 (7 U.S.C.
4801 et seq.);
(9) subtitle C of title XVI of Public Law 99-198 (7 U.S.C.
4901 et seq.);
(10) subtitle B of title XIX of Public Law 101-624 (7 U.S.C.
6101 et seq.);
(11) subtitle E of title XIX of Public Law 101-624 (7 U.S.C.
6301 et seq.);
(12) subtitle H of title XIX of Public Law 101-624 (7 U.S.C.
6401 et seq.);
(13) Public Law 103-190 (7 U.S.C. 6801 et seq.);
(14) Public Law 103-407 (7 U.S.C. 7101 et seq.);
(15) subtitle B;
(16) subtitle C;
(17) subtitle D; or
(18) subtitle E.
(b) Findings.--Congress finds the following:
(1) It is in the national public interest and vital to the
welfare of the agricultural economy of the United States to
maintain and expand existing markets and develop new markets and
uses for agricultural commodities through industry-funded,
Government-supervised, generic commodity promotion programs
established under commodity promotion laws.
(2) These generic commodity promotion programs, funded by
the agricultural producers or processors who most directly reap
the benefits of the programs and supervised by the Secretary of
Agriculture, provide a unique opportunity for producers and
processors to inform consumers about their products.
(3) The central congressional purpose underlying each
commodity promotion law has always been to maintain and expand
markets for the agricultural commodity covered by the law,
rather than to maintain or expand the share of those markets
held by any individual producer or processor.
(4) The commodity promotion laws were neither designed nor
intended to prohibit or restrict, and the promotion programs
established and funded pursuant to these laws do not prohibit or
restrict, individual advertising or promotion of the covered
commodities by any producer, processor, or group of producers or
processors.
(5) It has never been the intent of Congress for the generic
commodity promotion programs established and funded by the
commodity promotion laws to replace the individual advertising
and promotion efforts of producers or processors.
(6) An individual producer's or processor's own advertising
initiatives are typically designed to increase the share of the
market held by that producer or processor rather than to
increase or expand the overall size of the market.
(7) In contrast, a generic commodity promotion program is
intended and designed to maintain or increase the overall demand
for the agricultural commodity covered by the program
[[Page 110 STAT. 1031]]
and increase the size of the market for that commodity, often by
utilizing promotion methods and techniques that individual
producers and processors typically are unable, or have no
incentive, to employ.
(8) The commodity promotion laws establish promotion
programs that operate as ``self-help'' mechanisms for producers
and processors to fund generic promotions for covered
commodities which, under the required supervision and oversight
of the Secretary of Agriculture--
(A) further specific national governmental goals, as
established by Congress; and
(B) produce nonideological and commercial
communication the purpose of which is to further the
governmental policy and objective of maintaining and
expanding the markets for the covered commodities.
(9) While some commodity promotion laws grant a producer or
processor the option of crediting individual advertising
conducted by the producer or processor for all or a portion of
the producer's or processor's marketing promotion assessments,
all promotion programs established under the commodity promotion
laws, both those programs that permit credit for individual
advertising and those programs that do not contain such
provisions, are very narrowly tailored to fulfill the
congressional purposes of the commodity promotion laws without
impairing or infringing the legal or constitutional rights of
any individual producer or processor.
(10) These generic commodity promotion programs are of
particular benefit to small producers who often lack the
resources or market power to advertise on their own and who are
otherwise often unable to benefit from the economies of scale
available in promotion and advertising.
(11) Periodic independent evaluation of the effectiveness of
these generic commodity promotion programs will assist Congress
and the Secretary of Agriculture in ensuring that the objectives
of the programs are met.
(c) Independent Evaluation of Promotion Program Effectiveness.--
Except as otherwise provided by law, each commodity board established
under the supervision and oversight of the Secretary of Agriculture
pursuant to a commodity promotion law shall, not less often than every 5
years, authorize and fund, from funds otherwise available to the board,
an independent evaluation of the effectiveness of the generic commodity
promotion programs and other programs conducted by the board pursuant to
a commodity promotion law. <<NOTE: Public information.>> The board shall
submit to the Secretary, and make available to the public, the results
of each periodic independent evaluation conducted under this subsection.
(d) Administrative Costs.--The Secretary shall annually provide to
the Committee on Agriculture of the House of Representatives and the
Committee on Agriculture, Nutrition, and Forestry of the Senate
information on administrative expenses on programs established under
commodity promotion laws.
[[Page 110 STAT. 1032]]
Subtitle B <<NOTE: Commodity Promotion, Research, and Information Act of
1996.>> --Issuance of Orders for Promotion, Research, and Information
Activities Regarding Agricultural Commodities
SEC. 511. <<NOTE: 7 USC 7401 note.>> SHORT TITLE.
This subtitle may be cited as the ``Commodity Promotion, Research,
and Information Act of 1996''.
SEC. 512. <<NOTE: 7 USC 7411.>> FINDINGS AND PURPOSE.
(a) Findings.--Congress finds the following:
(1) The production of agricultural commodities plays a
significant role in the economy of the United States. Thousands
of producers in the United States are involved in the production
of agricultural commodities, and such commodities are consumed
by millions of people throughout the United States and foreign
countries.
(2) Agricultural commodities must be of high quality,
readily available, handled properly, and marketed efficiently to
ensure that consumers have an adequate supply.
(3) The maintenance and expansion of existing markets and
the development of new markets for agricultural commodities
through generic commodity promotion, research, and information
programs are vital to the welfare of persons engaged in the
production, marketing, and consumption of such commodities, as
well as to the general economy of the United States.
(4) Generic promotion, research, and information activities
for agricultural commodities play a unique role in advancing the
demand for such commodities, since such activities increase the
total market for a product to the benefit of consumers and all
producers. These generic activities complement branded
advertising initiatives, which are aimed at increasing the
market share of individual competitors, and are of particular
benefit to small producers who lack the resources or market
power to advertise on their own. These generic activities do not
impede the branded advertising efforts of individual firms, but
instead increase general market demand for an agricultural
commodity using methods that individual companies do not have
the incentive to employ.
(5) Generic promotion, research, and information activities
for agricultural commodities, paid by the producers and others
in the industry who reap the benefits of such activities,
provide a unique opportunity for producers to inform consumers
about a particular agricultural commodity.
(6) It is important to ensure that generic promotion,
research, and information activities for agricultural
commodities be carried out in an effective and coordinated
manner designed to strengthen the position of the commodities in
the marketplace and to maintain and expand their markets and
uses. Independent evaluation of the effectiveness of the generic
promotion activities of these programs will assist the Secretary
of Agriculture and Congress in ensuring that these objectives
are met.
[[Page 110 STAT. 1033]]
(7) The cooperative development, financing, and
implementation of a coordinated national program of research,
promotion, and information regarding agricultural commodities
are necessary to maintain and expand existing markets and to
develop new markets for these commodities.
(8) Agricultural commodities move in interstate and foreign
commerce, and agricultural commodities and their products that
do not move in such channels of commerce directly burden or
affect interstate commerce in agricultural commodities and their
products.
(9) Commodity promotion programs have the ability to provide
significant conservation benefits to producers and the public.
(b) Purpose.--The purpose of this subtitle is to authorize the
establishment, through the exercise by the Secretary of Agriculture of
the authority provided in this subtitle, of an orderly program for
developing, financing, and carrying out an effective, continuous, and
coordinated program of generic promotion, research, and information
regarding agricultural commodities designed to--
(1) strengthen the position of agricultural commodity
industries in the marketplace;
(2) maintain and expand existing domestic and foreign
markets and uses for agricultural commodities;
(3) develop new markets and uses for agricultural
commodities; or
(4) assist producers in meeting their conservation
objectives.
(c) Rule of Construction.--Nothing in this subtitle provides for the
control of production or otherwise limits the right of any person to
produce, handle, or import an agricultural commodity.
SEC. 513. <<NOTE: 7 USC 7412.>> DEFINITIONS.
In this subtitle (unless the context otherwise requires):
(1) Agricultural commodity.--The term ``agricultural
commodity'' means--
(A) agricultural, horticultural, viticultural, and
dairy products;
(B) livestock and the products of livestock;
(C) the products of poultry and bee raising;
(D) the products of forestry;
(E) other commodities raised or produced on farms,
as determined appropriate by the Secretary; and
(F) products processed or manufactured from products
specified in the preceding subparagraphs, as determined
appropriate by the Secretary.
(2) Board.--The term ``board'' means a board established
under an order issued under section 514.
(3) Conflict of interest.--The term ``conflict of interest''
means a situation in which a member or employee of a board has a
direct or indirect financial interest in a person that performs
a service for, or enters into a contract with, a board for
anything of economic value.
(4) Department.--The term ``Department'' means the
Department of Agriculture.
(5) First handler.--The term ``first handler'' means the
first person who buys or takes possession of an agricultural
commodity from a producer for marketing. If a producer mar
[[Page 110 STAT. 1034]]
kets the agricultural commodity directly to consumers, the
producer shall be considered to be the first handler with
respect to the agricultural commodity produced by the producer.
(6) Importer.--The term ``importer'' means any person who
imports an agricultural commodity from outside the United States
for sale in the United States as a principal or as an agent,
broker, or consignee of any person.
(7) Information.--The term ``information'' means information
and programs that are designed to increase--
(A) efficiency in processing; and
(B) the development of new markets, marketing
strategies, increased marketing efficiency, and
activities to enhance the image of agricultural
commodities on a national or international basis.
(8) Market.--The term ``market'' means to sell or to
otherwise dispose of an agricultural commodity in interstate,
foreign, or intrastate commerce.
(9) Order.--The term ``order'' means an order issued by the
Secretary under section 514 that provides for a program of
generic promotion, research, and information regarding
agricultural commodities designed to--
(A) strengthen the position of agricultural
commodity industries in the marketplace;
(B) maintain and expand existing domestic and
foreign markets and uses for agricultural commodities;
(C) develop new markets and uses for agricultural
commodities; or
(D) assist producers in meeting their conservation
objectives.
(10) Person.--The term ``person'' means any individual,
group of individuals, partnership, corporation, association,
cooperative, or any other legal entity.
(11) Producer.--The term ``producer'' means any person who
is engaged in the production and sale of an agricultural
commodity in the United States and who owns, or shares the
ownership and risk of loss of, the agricultural commodity.
(12) Promotion.--The term ``promotion'' means any action
taken by a board under an order, including paid advertising, to
present a favorable image of an agricultural commodity to the
public to improve the competitive position of the agricultural
commodity in the marketplace and to stimulate sales of the
agricultural commodity.
(13) Research.--The term ``research'' means any type of
test, study, or analysis designed to advance the image,
desirability, use, marketability, production, product
development, or quality of an agricultural commodity.
(14) Secretary.--The term ``Secretary'' means the Secretary
of Agriculture.
(15) State.--The term ``State'' means any of the States, the
District of Columbia, the Commonwealth of Puerto Rico, or any
territory or possession of the United States.
(16) Suspend.--The term ``suspend'' means to issue a rule
under section 553 of title 5, United States Code, to temporarily
prevent the operation of an order during a particular period of
time specified in the rule.
(17) Terminate.--The term ``terminate'' means to issue a
rule under section 553 of title 5, United States Code, to
[[Page 110 STAT. 1035]]
cancel permanently the operation of an order beginning on a date
certain specified in the rule.
(18) United states.--The term ``United States'' means
collectively the 50 States, the District of Columbia, the
Commonwealth of Puerto Rico and the territories and possessions
of the United States.
SEC. 514. <<NOTE: 7 USC 7413.>> ISSUANCE OF ORDERS.
(a) Issuance Authorized.--
(1) In general.--To effectuate the purpose of this subtitle,
the Secretary may issue, and amend from time to time, orders
applicable to--
(A) the producers of an agricultural commodity;
(B) the first handlers of the agricultural commodity
and other persons in the marketing chain as appropriate;
and
(C) the importers of the agricultural commodity, if
imports of the agricultural commodity are subject to
assessment under section 516(f).
(2) National scope.--Each order issued under this section
shall be national in scope.
(b) Procedure for Issuance.--
(1) Development or receipt of proposed order.--A proposed
order with respect to an agricultural commodity may be--
(A) prepared by the Secretary at any time; or
(B) submitted to the Secretary by--
(i) an association of producers of the
agricultural commodity; or
(ii) any other person that may be affected by
the issuance of an order with respect to the
agricultural commodity.
(2) <<NOTE: Federal Register, publication.>> Consideration
of proposed order.--If the Secretary determines that a proposed
order is consistent with and will effectuate the purpose of this
subtitle, the Secretary shall publish the proposed order in the
Federal Register and give due notice and opportunity for public
comment on the proposed order.
(3) Existence of other orders.--In deciding whether a
proposal for an order is consistent with and will effectuate the
purpose of this subtitle, the Secretary may consider the
existence of other Federal promotion, research, and information
programs or orders issued or developed pursuant to any other
law.
(4) Preparation of final order.--After notice and
opportunity for public comment under paragraph (2) regarding a
proposed order, the Secretary shall take into consideration the
comments received in preparing a final order. The Secretary
shall ensure that the final order is in conformity with the
terms, conditions, and requirements of this subtitle.
(c) Issuance and Effective Date.--If the Secretary determines that
the final order developed with respect to an agricultural commodity is
consistent with and will effectuate the purpose of this subtitle, the
Secretary shall issue the final order. Except in the case of an order
for which an initial referendum is conducted under section 518(a), the
final order shall be issued and become
[[Page 110 STAT. 1036]]
effective not later than 270 days after the date of publication of the
proposed order that was the basis for the final order.
(d) Amendments.--From time to time the Secretary may amend any
order, consistent with the requirements of section 523.
SEC. 515. <<NOTE: 7 USC 7414.>> REQUIRED TERMS IN ORDERS.
(a) In General.--Each order shall contain the terms and conditions
specified in this section.
(b) Board.--
(1) Establishment.--Each order shall establish a board to
carry out a program of generic promotion, research, and
information regarding the agricultural commodity covered by the
order and intended to effectuate the purpose of this subtitle.
(2) Board membership.--
(A) Number of members.--Each board shall consist of
the number of members considered by the Secretary, in
consultation with the agricultural commodity industry
involved, to be appropriate to administer the order. In
addition to members, the Secretary may also provide for
alternates on the board.
(B) Appointment.--The Secretary shall appoint the
members and any alternates of a board from among
producers of the agricultural commodity and first
handlers and others in the marketing chain as
appropriate. If imports of the agricultural commodity
covered by an order are subject to assessment under
section 516(f), the Secretary shall also appoint
importers as members of the board and as alternates if
alternates are included on the board. The Secretary may
appoint 1 or more members of the general public to each
board.
(C) Nominations.--The Secretary may make
appointments from nominations made pursuant to the
method set forth in the order.
(D) Geographical representation.--To ensure fair and
equitable representation of the agricultural commodity
industry covered by an order, the composition of each
board shall reflect the geographical distribution of the
production of the agricultural commodity involved in the
United States and the quantity or value of the
agricultural commodity imported into the United States.
(3) Reapportionment of board membership.--In accordance with
rules issued by the Secretary, at least once in each 5-year
period, but not more frequently than once in each 3-year period,
each board shall--
(A) review the geographical distribution in the
United States of the production of the agricultural
commodity covered by the order involved and the quantity
or value of the agricultural commodity imported into the
United States; and
(B) if warranted, recommend to the Secretary the
reapportionment of the board membership to reflect
changes in the geographical distribution of the
production of the agricultural commodity and the
quantity or value of the imported agricultural
commodity.
(4) Notice.--
[[Page 110 STAT. 1037]]
(A) Vacancies.--Each order shall provide for notice
of board vacancies to the agricultural commodity
industry involved.
(B) Meetings.--Each board shall provide the
Secretary with prior notice of meetings of the board to
permit the Secretary, or a designated representative of
the Secretary, to attend the meetings.
(5) Term of office.--
(A) In general.--The members and any alternates of a
board shall each serve for a term of 3 years, except
that the members and any alternates initially appointed
to a board shall serve for terms of not more than 2, 3,
and 4 years, as specified by the order.
(B) Limitation on consecutive terms.--A member or
alternate may serve not more than 2 consecutive terms.
(C) Continuation of term.--Notwithstanding
subparagraph (B), each member or alternate shall
continue to serve until a successor is appointed by the
Secretary.
(D) Vacancies.--A vacancy arising before the
expiration of a term of office of an incumbent member or
alternate of a board shall be filled in a manner
provided for in the order.
(6) Compensation.--
(A) In general.--Members and any alternates of a
board shall serve without compensation.
(B) Travel expenses.--If approved by a board,
members or alternates shall be reimbursed for reasonable
travel expenses, which may include a per diem allowance
or actual subsistence incurred while away from their
homes or regular places of business in the performance
of services for the board.
(c) Powers and Duties of a Board.--Each order shall specify the
powers and duties of the board established under the order, which shall
include the power and duty--
(1) to administer the order in accordance with its terms and
conditions and to collect assessments;
(2) to develop and recommend to the Secretary for approval
such bylaws as may be necessary for the functioning of the board
and such rules as may be necessary to administer the order,
including activities authorized to be carried out under the
order;
(3) to meet, organize, and select from among the members of
the board a chairperson, other officers, and committees and
subcommittees, as the board determines to be appropriate;
(4) to employ persons, other than the members, as the board
considers necessary to assist the board in carrying out its
duties, and to determine the compensation and specify the duties
of the persons;
(5) subject to subsection (e), to develop and carry out
generic promotion, research, and information activities relating
to the agricultural commodity covered by the order;
(6) to prepare and submit for the approval of the Secretary,
before the beginning of each fiscal year, rates of assessment
under section 517 and an annual budget of the anticipated
expenses to be incurred in the administration of the order,
including the probable cost of each promotion, research, and
[[Page 110 STAT. 1038]]
information activity proposed to be developed or carried out by
the board;
(7) to borrow funds necessary for the startup expenses of
the order;
(8) subject to subsection (f), to enter into contracts or
agreements to develop and carry out generic promotion, research,
and information activities relating to the agricultural
commodity covered by the order;
(9) to pay the cost of the activities with assessments
collected under section 517, earnings from invested assessments,
and other funds;
(10) <<NOTE: Records.>> to keep records that accurately
reflect the actions and transactions of the board, to keep and
report minutes of each meeting of the board to the Secretary,
and to furnish the Secretary with any information or records the
Secretary requests;
(11) to receive, investigate, and report to the Secretary
complaints of violations of the order; and
(12) to recommend to the Secretary such amendments to the
order as the board considers appropriate.
(d) Prohibited Activities.--A board may not engage in, and shall
prohibit the employees and agents of the board from engaging in--
(1) any action that would be a conflict of interest;
(2) using funds collected by the board under the order, any
action undertaken for the purpose of influencing any legislation
or governmental action or policy other than recommending to the
Secretary amendments to the order; and
(3) any advertising, including promotion, research, and
information activities authorized to be carried out under the
order, that may be false or misleading or disparaging to another
agricultural commodity.
(e) Activities and Budgets.--
(1) Activities.--Each order shall require the board
established under the order to submit to the Secretary for
approval plans and projects for promotion, research, or
information relating to the agricultural commodity covered by
the order.
(2) Budgets.--
(A) Submission to secretary.--Each order shall
require the board established under the order to submit
to the Secretary for approval a budget of its
anticipated annual expenses and disbursements to be paid
to administer the order. The budget shall be submitted
before the beginning of a fiscal year and as frequently
as may be necessary after the beginning of the fiscal
year.
(B) Reimbursement of secretary.--Each order shall
require that the Secretary be reimbursed for all
expenses incurred by the Secretary in the
implementation, administration, and supervision of the
order, including all referenda costs incurred in
connection with the order.
(3) Incurring expenses.--A board may incur the expenses
described in paragraph (2) and other expenses for the
administration, maintenance, and functioning of the board as
authorized by the Secretary.
(4) Payment of expenses.--Expenses incurred under paragraph
(3) shall be paid by a board using assessments collected under
section 517, earnings obtained from assessments, and
[[Page 110 STAT. 1039]]
other income of the board. Any funds borrowed by the board shall
be expended only for startup costs and capital outlays.
(5) Limitation on spending.--For fiscal years beginning 3 or
more years after the date of the establishment of a board, the
board may not expend for administration (except for
reimbursements to the Secretary required under paragraph
(2)(B)), maintenance, and functioning of the board in a fiscal
year an amount that exceeds 15 percent of the assessment and
other income received by the board for the fiscal year.
(f) Contracts and Agreements.--
(1) In general.--Each order shall provide that, with the
approval of the Secretary, the board established under the order
may--
(A) enter into contracts and agreements to carry out
generic promotion, research, and information activities
relating to the agricultural commodity covered by the
order, including contracts and agreements with producer
associations or other entities as considered appropriate
by the Secretary; and
(B) pay the cost of approved generic promotion,
research, and information activities using assessments
collected under section 517, earnings obtained from
assessments, and other income of the board.
(2) Requirements.--Each contract or agreement shall provide
that any person who enters into the contract or agreement with
the board shall--
(A) develop and submit to the board a proposed
activity together with a budget that specifies the cost
to be incurred to carry out the activity;
(B) <<NOTE: Records.>> keep accurate records of all
of its transactions relating to the contract or
agreement;
(C) account for funds received and expended in
connection with the contract or agreement;
(D) make periodic reports to the board of activities
conducted under the contract or agreement; and
(E) make such other reports as the board or the
Secretary considers relevant.
(g) Records of Board.--
(1) In general.--Each order shall require the board
established under the order--
(A) to maintain such records as the Secretary may
require and to make the records available to the
Secretary for inspection and audit;
(B) to collect and submit to the Secretary, at any
time the Secretary may specify, any information the
Secretary may request; and
(C) to account for the receipt and disbursement of
all funds in the possession, or under the control, of
the board.
(2) Audits.--Each order shall require the board established
under the order to have--
(A) its records audited by an independent auditor at
the end of each fiscal year; and
(B) <<NOTE: Reports.>> a report of the audit
submitted directly to the Secretary.
(h) Periodic Evaluation.--In accordance with section 501(c), each
order shall require the board established under the order
[[Page 110 STAT. 1040]]
to provide for the independent evaluation of all generic promotion,
research, and information activities undertaken under the order.
(i) Books and Records of Persons Covered by Order.--
(1) In general.--Each order shall require that producers,
first handlers and other persons in the marketing chain as
appropriate, and importers covered by the order shall--
(A) maintain records sufficient to ensure compliance
with the order and regulations;
(B) submit to the board established under the order
any information required by the board to carry out its
responsibilities under the order; and
(C) make the records described in subparagraph (A)
available, during normal business hours, for inspection
by employees or agents of the board or the Department,
including any records necessary to verify information
required under subparagraph (B).
(2) Time requirement.--Any record required to be maintained
under paragraph (1) shall be maintained for such time period as
the Secretary may prescribe.
(3) Other information.--The Secretary may use, and may
authorize the board to use under this subtitle, information
regarding persons subject to an order that is collected by the
Department under any other law.
(4) Confidentiality of information.--
(A) In general.--Except as otherwise provided in
this subtitle, all information obtained under paragraph
(1) or as part of a referendum under section 518 shall
be kept confidential by all officers, employees, and
agents of the Department and of the board.
(B) Disclosure.--Information referred to in
subparagraph (A) may be disclosed only if--
(i) the Secretary considers the information
relevant; and
(ii) the information is revealed in a judicial
proceeding or administrative hearing brought at
the direction or on the request of the Secretary
or to which the Secretary or any officer of the
Department is a party.
(C) Other exceptions.--This paragraph shall not
prohibit--
(i) the issuance of general statements based
on reports or on information relating to a number
of persons subject to an order if the statements
do not identify the information furnished by any
person; or
(ii) the publication, by direction of the
Secretary, of the name of any person violating any
order and a statement of the particular provisions
of the order violated by the person.
(D) Penalty.--Any person who willfully violates this
subsection shall be subject, on conviction, to a fine of
not more than $1,000 or to imprisonment for not more
than 1 year, or both.
(5) Withholding information.--This subsection shall not
authorize the withholding of information from Congress.
[[Page 110 STAT. 1041]]
SEC. 516. <<NOTE: 7 USC 7415.>> PERMISSIVE TERMS IN ORDERS.
(a) Exemptions.--An order issued under this subtitle may contain--
(1) authority for the Secretary to exempt from the order any
de minimis quantity of an agricultural commodity otherwise
covered by the order; and
(2) authority for the board established under the order to
require satisfactory safeguards against improper use of the
exemption.
(b) Different Payment and Reporting Schedules.--An order issued
under this subtitle may contain authority for the board established
under the order to designate different payment and reporting schedules
to recognize differences in agricultural commodity industry marketing
practices and procedures used in different production and importing
areas.
(c) Activities.--An order issued under this subtitle may contain
authority to develop and carry out research, promotion, and information
activities designed to expand, improve, or make more efficient the
marketing or use of the agricultural commodity covered by the order in
domestic and foreign markets. Section 515(e) shall apply with respect to
activities authorized under this subsection.
(d) Reserve Funds.--An order issued under this subtitle may contain
authority to reserve funds from assessments collected under section 517
to permit an effective and continuous coordinated program of research,
promotion, and information in years when the yield from assessments may
be reduced, except that the amount of funds reserved may not exceed the
greatest aggregate amount of the anticipated disbursements specified in
budgets approved under section 515(e) by the Secretary for any 2 fiscal
years.
(e) Credits.--
(1) Generic activities.--An order issued under this subtitle
may contain authority to provide credits of assessments for
those individuals who contribute to other similar generic
research, promotion, and information programs at the State,
regional, or local level.
(2) Branded activities.--
(A) In general.--The Secretary may permit a farmer
cooperative that engages in branded activities relating
to the marketing of the products of members of the
cooperative to receive an annual credit for the
activities and related expenditures in the form of a
deduction of the total cost of the activities and
related expenditures from the amount of any assessment
that would otherwise be required to be paid by the
producer members of the cooperative under an order
issued under this subtitle.
(B) Election by cooperative.--A farmer cooperative
may elect to voluntarily waive the application of
subparagraph (A) to the cooperative.
(f) Assessment of Imports.--An order issued under this subtitle may
contain authority for the board established under the order to assess
under section 517 an imported agricultural commodity, or products of
such an agricultural commodity, at a rate comparable to the rate
determined by the appropriate board for the domestic agricultural
commodity covered by the order.
(g) Other Authority.--An order issued under this subtitle may
contain authority to take any other action that--
[[Page 110 STAT. 1042]]
(1) is not inconsistent with the purpose of this subtitle,
any term or condition specified in section 515, or any rule
issued to carry out this subtitle; and
(2) is necessary to administer the order.
SEC. 517. <<NOTE: 7 USC 7416.>> ASSESSMENTS.
(a) Assessments Authorized.--While an order issued under this
subtitle is in effect with respect to an agricultural commodity,
assessments shall be--
(1) paid by first handlers with respect to the agricultural
commodity produced and marketed in the United States; and
(2) paid by importers with respect to the agricultural
commodity imported into the United States, if the imported
agricultural commodity is covered by the order pursuant to
section 516(f).
(b) Collection.--Assessments required under an order shall be
remitted to the board established under the order at the time and in the
manner prescribed by the order.
(c) Limitation on Assessments.--Not more than 1 assessment may be
levied on a first handler or importer under subsection (a) with respect
to any agricultural commodity.
(d) Assessment Rates.--The board shall recommend to the Secretary 1
or more rates of assessment to be levied under subsection (a). If
approved by the Secretary, the rates shall take effect. An order may
provide that an assessment rate may not be increased unless approved by
a referendum conducted pursuant to section 518.
(e) Late-Payment and Interest Charges.--
(1) In general.--Late-payment and interest charges may be
levied on each person subject to an order who fails to remit an
assessment in accordance with subsection (b).
(2) Rate.--The rate for the charges shall be specified by
the Secretary.
(f) Investment of Assessments.--Pending disbursement of assessments
under a budget approved by the Secretary, a board may invest assessments
collected under this section in--
(1) obligations of the United States or any agency of the
United States;
(2) general obligations of any State or any political
subdivision of a State;
(3) interest-bearing accounts or certificates of deposit of
financial institutions that are members of the Federal Reserve
System; or
(4) obligations fully guaranteed as to principal and
interest by the United States.
(g) Refund of Assessments From Escrow Account.--
(1) Escrow account.--During the period beginning on the
effective date of an order and ending on the date the Secretary
announces the results of a referendum that is conducted under
section 518(b)(1) with respect to the order, the board
established under the order shall--
(A) establish and maintain an escrow account of the
kind described in subsection (f)(3) to be used to refund
assessments; and
(B) deposit funds in the account in accordance with
paragraph (2).
[[Page 110 STAT. 1043]]
(2) Amount to be deposited.--The board shall deposit in the
account an amount equal to 10 percent of the assessments
collected during the period referred to in paragraph (1).
(3) Right to receive refund.--Subject to paragraphs (4),
(5), and (6), persons subject to an order shall be eligible to
demand a refund of assessments collected during the period
referred to in paragraph (1) if--
(A) the assessments were remitted on behalf of the
person; and
(B) the order is not approved in the referendum.
(4) Form of demand.--The demand for a refund shall be made
at such time and in such form as specified by the order.
(5) Payment of refund.--A person entitled to a refund shall
be paid promptly after the board receives satisfactory proof
that the assessment for which the refund is demanded was paid on
behalf of the person who makes the demand.
(6) Proration.--If the funds in the escrow account required
by paragraph (1) are insufficient to pay the amount of all
refunds that persons subject to an order otherwise would have a
right to receive under this subsection, the board shall prorate
the amount of the funds among all the persons.
(7) Closing of escrow account.--If the order is approved in
a referendum conducted under section 518(b)(1)--
(A) the escrow account shall be closed; and
(B) the funds shall be available to the board for
disbursement as authorized in the order.
SEC. 518. <<NOTE: 7 USC 7417.>> REFERENDA.
(a) Initial Referendum.--
(1) Optional referendum.--For the purpose of ascertaining
whether the persons to be covered by an order favor the order
going into effect, the order may provide for the Secretary to
conduct an initial referendum among persons to be subject to an
assessment under section 517 who, during a representative period
determined by the Secretary, engaged in--
(A) the production or handling of the agricultural
commodity covered by the order; or
(B) the importation of the agricultural commodity.
(2) Procedure.--The results of the referendum shall be
determined in accordance with subsection (e). The Secretary may
require that the agricultural commodity industry involved post a
bond or other collateral to cover the cost of the referendum.
(b) Required Referenda.--
(1) In general.--For the purpose of ascertaining whether the
persons covered by an order favor the continuation, suspension,
or termination of the order, the Secretary shall conduct a
referendum among persons subject to assessments under section
517 who, during a representative period determined by the
Secretary, have engaged in--
(A) the production or handling of the agricultural
commodity covered by the order; or
(B) the importation of the agricultural commodity.
[[Page 110 STAT. 1044]]
(2) Time for referendum.--The referendum shall be conducted
not later than 3 years after assessments first begin under the
order.
(3) Exception.--This subsection shall not apply if an
initial referendum was conducted under subsection (a).
(c) Subsequent Referenda.--The Secretary shall conduct a subsequent
referendum--
(1) not later than 7 years after assessments first begin
under the order;
(2) at the request of the board established under the order;
or
(3) at the request of 10 percent or more of the number of
persons eligible to vote under subsection (b)(1);
to determine if the persons favor the continuation, suspension, or
termination of the order.
(d) Other Referenda.--The Secretary may conduct a referendum at any
time to determine whether the continuation, suspension, or termination
of the order or a provision of the order is favored by persons eligible
to vote under subsection (b)(1).
(e) Approval of Order.--An order may provide for its approval in a
referendum--
(1) by a majority of those persons voting;
(2) by persons voting for approval who represent a majority
of the volume of the agricultural commodity; or
(3) by a majority of those persons voting for approval who
also represent a majority of the volume of the agricultural
commodity.
(f) Costs of Referenda.--The board established under an order with
respect to which a referendum is conducted under this section shall
reimburse the Secretary for any expenses incurred by the Secretary to
conduct the referendum.
(g) Manner of Conducting Referenda.--
(1) In general.--A referendum conducted under this section
shall be conducted in the manner determined by the Secretary to
be appropriate.
(2) Advance registration.--If the Secretary determines that
an advance registration of eligible voters in a referendum is
necessary before the voting period in order to facilitate the
conduct of the referendum, the Secretary may institute the
advance registration procedures by mail, or in person through
the use of national and local offices of the Department.
(3) Voting.--Eligible voters may vote by mail ballot in the
referendum or in person if so prescribed by the Secretary.
(4) Notice.--Not later than 30 days before a referendum is
conducted under this section with respect to an order, the
Secretary shall notify the agricultural commodity industry
involved, in such manner as determined by the Secretary, of the
period during which voting in the referendum will occur. The
notice shall explain any registration and voting procedures
established under this subsection.
SEC. 519. <<NOTE: 7 USC 7418.>> PETITION AND REVIEW OF ORDERS.
(a) Petition.--
(1) In general.--A person subject to an order issued under
this subtitle may file with the Secretary a petition--
[[Page 110 STAT. 1045]]
(A) stating that the order, any provision of the
order, or any obligation imposed in connection with the
order, is not established in accordance with law; and
(B) requesting a modification of the order or an
exemption from the order.
(2) Hearing.--The Secretary shall give the petitioner an
opportunity for a hearing on the petition, in accordance with
regulations issued by the Secretary.
(3) Ruling.--After the hearing, the Secretary shall make a
ruling on the petition. The ruling shall be final, subject to
review as set forth in subsection (b).
(4) Limitation on petition.--Any petition filed under this
subsection challenging an order, any provision of the order, or
any obligation imposed in connection with the order, shall be
filed within 2 years after the effective date of the order,
provision, or obligation subject to challenge in the petition.
(b) Review.--
(1) <<NOTE: Courts.>> Commencement of action.--The district
court of the United States for any district in which a person
who is a petitioner under subsection (a) resides or carries on
business shall have jurisdiction to review the final ruling on
the petition of the person, if a complaint for that purpose is
filed not later than 20 days after the date of the entry of the
final ruling by the Secretary under subsection (a)(3).
(2) Process.--Service of process in a proceeding may be made
on the Secretary by delivering a copy of the complaint to the
Secretary.
(3) Remands.--If the court determines that the ruling is not
in accordance with law, the court shall remand the matter to the
Secretary with directions--
(A) to make such ruling as the court determines to
be in accordance with law; or
(B) to take such further action as, in the opinion
of the court, the law requires.
(c) Effect on Enforcement Proceedings.--The pendency of a petition
filed under subsection (a) or an action commenced under subsection (b)
shall not operate as a stay of any action authorized by section 520 to
be taken to enforce this subtitle, including any rule, order, or penalty
in effect under this subtitle.
SEC. 520. <<NOTE: 7 USC 7419.>> ENFORCEMENT.
(a) <<NOTE: Courts.>> Jurisdiction.--The district courts of the
United States shall have jurisdiction specifically to enforce, and to
prevent and restrain a person from violating, an order or regulation
issued under this subtitle.
(b) Referral to Attorney General.--A civil action authorized to be
brought under this section shall be referred to the Attorney General for
appropriate action, except that the Secretary shall not be required to
refer to the Attorney General a violation of this subtitle if the
Secretary believes that the administration and enforcement of this
subtitle would be adequately served by providing a suitable written
notice or warning to the person who committed the violation or by an
administrative action under this section.
(c) Civil Penalties and Orders.--
(1) Civil penalties.--A person who willfully violates an
order or regulation issued by the Secretary under this Act
[[Page 110 STAT. 1046]]
may be assessed by the Secretary a civil penalty of not less
than $1,000 and not more than $10,000 for each violation.
(2) Separate offense.--Each violation and each day during
which there is a failure to comply with an order or regulation
issued by the Secretary shall be considered to be a separate
offense.
(3) Cease-and-desist orders.--In addition to, or in lieu of,
a civil penalty, the Secretary may issue an order requiring a
person to cease and desist from violating the order or
regulation.
(4) Notice and hearing.--No order assessing a penalty or
cease-and-desist order may be issued by the Secretary under this
subsection unless the Secretary provides notice and an
opportunity for a hearing on the record with respect to the
violation.
(5) Finality.--An order assessing a penalty or a cease-and-
desist order issued under this subsection by the Secretary shall
be final and conclusive unless the person against whom the order
is issued files an appeal from the order with the United States
court of appeals, as provided in subsection (d).
(d) Review by Court of Appeals.--
(1) In general.--A person against whom an order is issued
under subsection (c) may obtain review of the order by--
(A) filing, not later than 30 days after the person
receives notice of the order, a notice of appeal in--
(i) the United States court of appeals for the
circuit in which the person resides or carries on
business; or
(ii) the United States Court of Appeals for
the District of Columbia Circuit; and
(B) simultaneously sending a copy of the notice of
appeal by certified mail to the Secretary.
(2) Record.--The Secretary shall file with the court a
certified copy of the record on which the Secretary has
determined that the person has committed a violation.
(3) Standard of review.--A finding of the Secretary under
this section shall be set aside only if the finding is found to
be unsupported by substantial evidence on the record.
(e) Failure To Obey Cease-and-Desist Orders.--A person who fails to
obey a valid cease-and-desist order issued by the Secretary under this
section, after an opportunity for a hearing, shall be subject to a civil
penalty assessed by the Secretary of not less than $1,000 and not more
than $10,000 for each offense. Each day during which the failure
continues shall be considered to be a separate violation of the cease-
and-desist order.
(f) Failure To Pay Penalties.--If a person fails to pay a civil
penalty imposed under this section by the Secretary, the Secretary shall
refer the matter to the Attorney General for recovery of the amount
assessed in the district court of the United States for any district in
which the person resides or carries on business. In the action, the
validity and appropriateness of the order imposing the civil penalty
shall not be subject to review.
(g) Additional Remedies.--The remedies provided in this section
shall be in addition to, and not exclusive of, other remedies that may
be available.
[[Page 110 STAT. 1047]]
SEC. 521. <<NOTE: 7 USC 7420.>> INVESTIGATIONS AND POWER TO SUBPOENA.
(a) Investigations.--The Secretary may make such investigations as
the Secretary considers necessary--
(1) for the effective administration of this subtitle; or
(2) to determine whether any person subject to this subtitle
has engaged, or is about to engage, in any action that
constitutes or will constitute a violation of this subtitle or
any order or regulation issued under this subtitle.
(b) Subpoenas, Oaths, and Affirmations.--For the purpose of any
investigation under subsection (a), the Secretary may administer oaths
and affirmations, subpoena witnesses, compel the attendance of
witnesses, take evidence, and require the production of any records or
documents that are relevant to the inquiry. The attendance of witnesses
and the production of records or documents may be required from any
place in the United States.
(c) Aid of Courts.--In the case of contumacy by, or refusal to obey
a subpoena issued to, any person, the Secretary may invoke the aid of
any court of the United States within the jurisdiction of which the
investigation or proceeding is carried on, or where the person resides
or carries on business, in order to require the attendance and testimony
of the person or the production of records or documents. The court may
issue an order requiring the person to appear before the Secretary to
produce records or documents or to give testimony regarding the matter
under investigation.
(d) Contempt.--Any failure to obey the order of the court may be
punished by the court as a contempt of the court.
(e) Process.--Process in any case under this section may be served
in the judicial district in which the person resides or carries on
business or wherever the person may be found.
SEC. 522. <<NOTE: 7 USC 7421.>> SUSPENSION OR TERMINATION.
(a) Mandatory Suspension or Termination.--The Secretary shall
suspend or terminate an order or a provision of an order if the
Secretary finds that an order or a provision of an order obstructs or
does not tend to effectuate the purpose of this subtitle, or if the
Secretary determines that the order or a provision of an order is not
favored by persons voting in a referendum conducted under section 518.
(b) Implementation of Suspension or Termination.--If, as a result of
a referendum conducted under section 518, the Secretary determines that
an order is not approved, the Secretary shall--
(1) not later than 180 days after making the determination,
suspend or terminate, as the case may be, collection of
assessments under the order; and
(2) as soon as practicable, suspend or terminate, as the
case may be, activities under the order in an orderly manner.
SEC. 523. <<NOTE: 7 USC 7422.>> AMENDMENTS TO ORDERS.
The provisions of this subtitle applicable to an order shall be
applicable to any amendment to an order, except that section 518 shall
not apply to an amendment.
SEC. 524. <<NOTE: 7 USC 7423.>> EFFECT ON OTHER LAWS.
This subtitle shall not affect or preempt any other Federal or State
law authorizing promotion or research relating to an agricultural
commodity.
[[Page 110 STAT. 1048]]
SEC. 525. <<NOTE: 7 USC 7424.>> REGULATIONS.
The Secretary may issue such regulations as may be necessary to
carry out this subtitle and the power vested in the Secretary under this
subtitle.
SEC. 526. <<NOTE: 7 USC 7425.>> AUTHORIZATION OF APPROPRIATIONS.
(a) In General.--There are authorized to be appropriated such sums
as may be necessary to carry out this subtitle.
(b) Limitation on Expenditures for Administrative Expenses.--Funds
appropriated to carry out this subtitle may not be expended for the
payment of expenses incurred by a board to administer an order.
Subtitle C-- <<NOTE: Canola and Rapeseed Research, Promotion, and
Consumer Information Act.>> Canola and Rapeseed
SEC. 531. <<NOTE: 7 USC 7401 note.>> SHORT TITLE.
This subtitle may be cited as the ``Canola and Rapeseed Research,
Promotion, and Consumer Information Act''.
SEC. 532. <<NOTE: 7 USC 7441.>> FINDINGS AND DECLARATION OF POLICY.
(a) Findings.--Congress finds that--
(1) canola and rapeseed products are an important and
nutritious part of the human diet;
(2) the production of canola and rapeseed products plays a
significant role in the economy of the United States in that--
(A) canola and rapeseed products are produced by
thousands of canola and rapeseed producers and processed
by numerous processing entities; and
(B) canola and rapeseed products produced in the
United States are consumed by people throughout the
United States and foreign countries;
(3) canola, rapeseed, and canola and rapeseed products
should be readily available and marketed efficiently to ensure
that consumers have an adequate supply of canola and rapeseed
products at a reasonable price;
(4) the maintenance and expansion of existing markets and
development of new markets for canola, rapeseed, and canola and
rapeseed products are vital to the welfare of canola and
rapeseed producers and processors and those persons concerned
with marketing canola, rapeseed, and canola and rapeseed
products, as well as to the general economy of the United
States, and are necessary to ensure the ready availability and
efficient marketing of canola, rapeseed, and canola and rapeseed
products;
(5) there exist established State and national organizations
conducting canola and rapeseed research, promotion, and consumer
education programs that are valuable to the efforts of promoting
the consumption of canola, rapeseed, and canola and rapeseed
products;
(6) the cooperative development, financing, and
implementation of a coordinated national program of canola and
rapeseed research, promotion, consumer information, and industry
information is necessary to maintain and expand existing markets
and develop new markets for canola, rapeseed, and canola and
rapeseed products; and
(7) canola, rapeseed, and canola and rapeseed products move
in interstate and foreign commerce, and canola, rapeseed,
[[Page 110 STAT. 1049]]
and canola and rapeseed products that do not move in interstate
or foreign commerce directly burden or affect interstate
commerce in canola, rapeseed, and canola and rapeseed products.
(b) Policy.--It is the policy of this subtitle to establish an
orderly procedure for developing, financing through assessments on
domestically produced canola and rapeseed, and implementing a program of
research, promotion, consumer information, and industry information
designed to strengthen the position in the marketplace of the canola and
rapeseed industry, to maintain and expand existing domestic and foreign
markets and uses for canola, rapeseed, and canola and rapeseed products,
and to develop new markets and uses for canola, rapeseed, and canola and
rapeseed products.
(c) Construction.--Nothing in this subtitle provides for the control
of production or otherwise limits the right of individual producers to
produce canola, rapeseed, or canola or rapeseed products.
SEC. 533. <<NOTE: 7 USC 7442.>> DEFINITIONS.
In this subtitle (unless the context otherwise requires):
(1) Board.--The term ``Board'' means the National Canola and
Rapeseed Board established under section 535(b).
(2) Canola; rapeseed.--The terms ``canola'' and ``rapeseed''
mean any brassica plant grown in the United States for the
production of an oilseed, the oil of which is used for a food or
nonfood use.
(3) Canola or rapeseed product.--The term ``canola or
rapeseed product'' means a product produced, in whole or in
part, from canola or rapeseed.
(4) Commerce.--The term ``commerce'' includes interstate,
foreign, and intrastate commerce.
(5) Conflict of interest.--The term ``conflict of interest''
means a situation in which a member of the Board has a direct or
indirect financial interest in a corporation, partnership, sole
proprietorship, joint venture, or other business entity dealing
directly or indirectly with the Board.
(6) Consumer information.--The term ``consumer information''
means information that will assist consumers and other persons
in making evaluations and decisions regarding the purchase,
preparation, and use of canola, rapeseed, or canola or rapeseed
products.
(7) Department.--The term ``Department'' means the
Department of Agriculture.
(8) First purchaser.--The term ``first purchaser'' means--
(A) except as provided in subparagraph (B), a person
who buys or otherwise acquires canola, rapeseed, or
canola or rapeseed products produced by a producer; or
(B) the Commodity Credit Corporation, in a case in
which canola or rapeseed is forfeited to the Commodity
Credit Corporation as collateral for a loan issued under
a price support loan program administered by the
Commodity Credit Corporation.
(9) Industry information.--The term ``industry information''
means information or a program that will lead to the development
of new markets, new marketing strategies, or increased
efficiency for the canola and rapeseed industry, or an activity
to enhance the image of the canola or rapeseed industry.
[[Page 110 STAT. 1050]]
(10) Industry member.--The term ``industry member'' means a
member of the canola and rapeseed industry who represents--
(A) manufacturers of canola or rapeseed products; or
(B) persons who commercially buy or sell canola or
rapeseed.
(11) Marketing.--The term ``marketing'' means the sale or
other disposition of canola, rapeseed, or canola or rapeseed
products in a channel of commerce.
(12) Order.--The term ``order'' means an order issued under
section 534.
(13) Person.--The term ``person'' means an individual,
partnership, corporation, association, cooperative, or any other
legal entity.
(14) Producer.--The term ``producer'' means a person engaged
in the growing of canola or rapeseed in the United States who
owns, or who shares the ownership and risk of loss of, the
canola or rapeseed.
(15) Promotion.--The term ``promotion'' means an action,
including paid advertising, technical assistance, or a trade
servicing activity, to enhance the image or desirability of
canola, rapeseed, or canola or rapeseed products in domestic and
foreign markets, or an activity designed to communicate to
consumers, processors, wholesalers, retailers, government
officials, or other persons information relating to the positive
attributes of canola, rapeseed, or canola or rapeseed products
or the benefits of use or distribution of canola, rapeseed, or
canola or rapeseed products.
(16) Research.--The term ``research'' means any type of
test, study, or analysis to advance the image, desirability,
marketability, production, product development, quality, or
functional or nutritional value of canola, rapeseed, or canola
or rapeseed products, including research activity designed to
identify and analyze barriers to export sales of canola or
rapeseed produced in the United States.
(17) Secretary.--The term ``Secretary'' means the Secretary
of Agriculture.
(18) State.--The term ``State'' means any of the 50 States,
the District of Columbia and the Commonwealth of Puerto Rico.
(19) United states.--The term ``United States'' means
collectively the 50 States, the District of Columbia, and the
Commonwealth of Puerto Rico.
SEC. 534. <<NOTE: 7 USC 7443.>> ISSUANCE AND AMENDMENT OF ORDERS.
(a) In General.--Subject to subsection (b), the Secretary shall
issue 1 or more orders under this subtitle applicable to producers and
first purchasers of canola, rapeseed, or canola or rapeseed products.
The order shall be national in scope. Not more than 1 order shall be in
effect under this subtitle at any 1 time.
(b) Procedure.--
(1) Proposal or request for issuance.--The Secretary may
propose the issuance of an order under this subtitle, or an
association of canola and rapeseed producers or any other person
that would be affected by an order issued pursuant to this
subtitle may request the issuance of, and submit a proposal for,
an order.
[[Page 110 STAT. 1051]]
(2) <<NOTE: Publication.>> Notice and comment concerning
proposed order.--Not later than 60 days after the receipt of a
request and proposal for an order pursuant to paragraph (1), or
whenever the Secretary determines to propose an order, the
Secretary shall publish a proposed order and give due notice and
opportunity for public comment on the proposed order.
(3) Issuance of order.--After notice and opportunity for
public comment are given as provided in paragraph (2), the
Secretary shall issue an order, taking into consideration the
comments received and including in the order provisions
necessary to ensure that the order is in conformity with the
requirements of this subtitle. <<NOTE: Effective date.>> The
order shall be issued and become effective not later than 180
days following publication of the proposed order.
(c) Amendments.--The Secretary may amend an order issued under this
section.
SEC. 535. <<NOTE: 7 USC 7444.>> REQUIRED TERMS IN ORDERS.
(a) In General.--An order issued under this subtitle shall contain
the terms and conditions specified in this section.
(b) Establishment and Membership of the National Canola and Rapeseed
Board.--
(1) In general.--The order shall provide for the
establishment of, and appointment of members to, a National
Canola and Rapeseed Board to administer the order.
(2) Service to entire industry.--The Board shall carry out
programs and projects that will provide maximum benefit to the
canola and rapeseed industry in all parts of the United States
and only promote canola, rapeseed, or canola or rapeseed
products.
(3) Board membership.--The Board shall consist of 15
members, including--
(A) 11 members who are producers, including--
(i) 1 member from each of the 6 geographic
regions comprised of States where canola or
rapeseed is produced, as determined by the
Secretary; and
(ii) 5 members from the geographic regions
referred to in clause (i), allocated according to
the production in each region; and
(B) 4 members who are industry members, including at
least--
(i) 1 member who represents manufacturers of
canola or rapeseed end products; and
(ii) 1 member who represents persons who
commercially buy or sell canola or rapeseed.
(4) Limitation on state residence.--There shall be no more
than 4 producer members of the Board from any 1 State.
(5) Modifying board membership.--In accordance with
regulations approved by the Secretary, at least once each 3
years and not more than once each 2 years, the Board shall
review the geographic distribution of canola and rapeseed
production throughout the United States and, if warranted,
recommend to the Secretary that the Secretary--
(A) reapportion regions in order to reflect the
geographic distribution of canola and rapeseed
production; and
[[Page 110 STAT. 1052]]
(B) reapportion the seats on the Board to reflect
the production in each region.
(6) Certification of organizations.--
(A) In general.--For the purposes of section 536,
the eligibility of any State organization to represent
producers shall be certified by the Secretary.
(B) Criteria.--The Secretary shall certify any State
organization that the Secretary determines has a history
of stability and permanency and meets at least 1 of the
following criteria:
(i) Majority representation.--The total paid
membership of the organization--
(I) is comprised of at least a
majority of canola or rapeseed
producers; or
(II) represents at least a majority
of the canola or rapeseed producers in
the State.
(ii) Substantial number of producers
represented.--The organization represents a
substantial number of producers that produce a
substantial quantity of canola or rapeseed in the
State.
(iii) Purpose.--The organization is a general
farm or agricultural organization that has as a
stated objective the promotion and development of
the United States canola or rapeseed industry and
the economic welfare of United States canola or
rapeseed producers.
(C) Report.--The Secretary shall make a
certification under this paragraph on the basis of a
factual report submitted by the State organization.
(7) Terms of office.--
(A) In general.--A member of the Board shall serve
for a term of 3 years, except that the members appointed
to the initial Board shall serve, proportionately, for
terms of 1, 2, and 3 years, as determined by the
Secretary.
(B) Limitation on terms.--No individual may serve
more than 2 consecutive 3-year terms as a member.
(C) Termination of terms.--Notwithstanding
subparagraph (B), each member shall continue to serve
until a successor is appointed by the Secretary.
(8) Compensation.--A member of the Board shall serve without
compensation, but shall be reimbursed for necessary and
reasonable expenses incurred in the performance of duties for
and approved by the Board.
(c) Powers and Duties of the Board.--The order shall define the
powers and duties of the Board, which shall include the power and duty--
(1) to administer the order in accordance with the terms and
conditions of the order;
(2) to issue regulations to effectuate the terms and
conditions of the order;
(3) to meet, organize, and select from among members of the
Board a chairperson, other officers, and committees and
subcommittees, as the Board determines appropriate;
(4) to establish working committees of persons other than
Board members;
(5) to employ such persons, other than Board members, as the
Board considers necessary, and to determine the compensation and
define the duties of the persons;
[[Page 110 STAT. 1053]]
(6) to prepare and submit for the approval of the Secretary,
when appropriate or necessary, a recommended rate of assessment
under section 536, and a fiscal period budget of the anticipated
expenses in the administration of the order, including the
probable costs of all programs and projects;
(7) to develop programs and projects, subject to subsection
(d);
(8) to enter into contracts or agreements, subject to
subsection (e), to develop and carry out programs or projects of
research, promotion, industry information, and consumer
information;
(9) to carry out research, promotion, industry information,
and consumer information projects, and to pay the costs of the
projects with assessments collected under section 536;
(10) to keep minutes, books, and records that reflect the
actions and transactions of the Board, and promptly report
minutes of each Board meeting to the Secretary;
(11) to appoint and convene, from time to time, working
committees comprised of producers, industry members, and the
public to assist in the development of research, promotion,
industry information, and consumer information programs for
canola, rapeseed, and canola and rapeseed products;
(12) to invest, pending disbursement under a program or
project, funds collected through assessments authorized under
section 536, or funds earned from investments, only in--
(A) obligations of the United States or an agency of
the United States;
(B) general obligations of a State or a political
subdivision of a State;
(C) an interest-bearing account or certificate of
deposit of a bank that is a member of the Federal
Reserve System; or
(D) obligations fully guaranteed as to principal and
interest by the United States;
(13) to receive, investigate, and report to the Secretary
complaints of violations of the order;
(14) to furnish the Secretary with such information as the
Secretary may request;
(15) to recommend to the Secretary amendments to the order;
(16) to develop and recommend to the Secretary for approval
such regulations as may be necessary for the development and
execution of programs or projects, or as may otherwise be
necessary, to carry out the order; and
(17) to provide the Secretary with advance notice of
meetings.
(d) Programs and Budgets.--
(1) Submission to secretary.--The order shall provide that
the Board shall submit to the Secretary for approval any program
or project of research, promotion, consumer information, or
industry information. No program or project shall be implemented
prior to approval by the Secretary.
(2) Budgets.--The order shall require the Board, prior to
the beginning of each fiscal year, or as may be necessary after
the beginning of a fiscal year, to submit to the Secretary for
approval budgets of anticipated expenses and disbursements in
the implementation of the order, including projected costs
[[Page 110 STAT. 1054]]
of research, promotion, consumer information, and industry
information programs and projects.
(3) Incurring expenses.--The Board may incur such expenses
for programs or projects of research, promotion, consumer
information, or industry information, and other expenses for the
administration, maintenance, and functioning of the Board as may
be authorized by the Secretary, including any implementation,
administrative, and referendum costs incurred by the Department.
(4) Paying expenses.--The funds to cover the expenses
referred to in paragraph (3) shall be paid by the Board from
assessments collected under section 536 or funds borrowed
pursuant to paragraph (5).
(5) Authority to borrow.--To meet the expenses referred to
in paragraph (3), the Board shall have the authority to borrow
funds, as approved by the Secretary, for capital outlays and
startup costs.
(e) Contracts and Agreements.--
(1) In general.--To ensure efficient use of funds, the order
shall provide that the Board may enter into a contract or
agreement for the implementation and carrying out of a program
or project of canola, rapeseed, or canola or rapeseed products
research, promotion, consumer information, or industry
information, including a contract with a producer organization,
and for the payment of the costs with funds received by the
Board under the order.
(2) Requirements.--A contract or agreement under paragraph
(1) shall provide that--
(A) the contracting party shall develop and submit
to the Board a program or project together with a budget
that shall show the estimated costs to be incurred for
the program or project;
(B) <<NOTE: Effective date.>> the program or
project shall become effective on the approval of the
Secretary; and
(C) <<NOTE: Records. Reports.>> the contracting
party shall keep accurate records of all transactions,
account for funds received and expended, make periodic
reports to the Board of activities conducted, and make
such other reports as the Board or the Secretary may
require.
(3) Producer organizations.--The order shall provide that
the Board may contract with a producer organization for any
services required in addition to the services described in
paragraph (1). The contract shall include provisions comparable
to the provisions required by paragraph (2).
(f) Books and Records of the Board.--
(1) In general.--The order shall require the Board to--
(A) maintain such books and records (which shall be
available to the Secretary for inspection and audit) as
the Secretary may prescribe;
(B) <<NOTE: Reports.>> prepare and submit to the
Secretary, from time to time, such reports as the
Secretary may prescribe; and
(C) account for the receipt and disbursement of all
funds entrusted to the Board.
(2) <<NOTE: Reports.>> Audits.--The Board shall cause the
books and records of the Board to be audited by an independent
auditor at the end of each fiscal year, and a report of the
audit to be submitted to the Secretary.
[[Page 110 STAT. 1055]]
(g) Prohibition.--
(1) In general.--Subject to paragraph (2), the Board shall
not engage in any action to, nor shall any funds received by the
Board under this subtitle be used to--
(A) influence legislation or governmental action;
(B) engage in an action that would be a conflict of
interest;
(C) engage in advertising that is false or
misleading; or
(D) engage in promotion that would disparage other
commodities.
(2) Action permitted.--Paragraph (1) does not preclude--
(A) the development and recommendation of amendments
to the order;
(B) the communication to appropriate government
officials of information relating to the conduct,
implementation, or results of promotion, research,
consumer information, or industry information activities
under the order; or
(C) any action designed to market canola or rapeseed
products directly to a foreign government or political
subdivision of a foreign government.
(h) Books and Records.--
(1) In general.--The order shall require that each producer,
first purchaser, or industry member shall--
(A) maintain and submit to the Board any reports
considered necessary by the Secretary to ensure
compliance with this subtitle; and
(B) make available during normal business hours, for
inspection by employees of the Board or Secretary, such
books and records as are necessary to carry out this
subtitle, including such records as are necessary to
verify any required reports.
(2) Confidentiality.--
(A) In general.--Except as otherwise provided in
this subtitle, all information obtained from books,
records, or reports required to be maintained under
paragraph (1) shall be kept confidential, and shall not
be disclosed to the public by any person.
(B) Disclosure.--Information referred to in
subparagraph (A) may be disclosed to the public if--
(i) the Secretary considers the information
relevant;
(ii) the information is revealed in a suit or
administrative hearing brought at the direction or
on the request of the Secretary or to which the
Secretary or any officer of the Department is a
party; and
(iii) the information relates to this
subtitle.
(C) Misconduct.--A knowing disclosure of
confidential information in violation of subparagraph
(A) by an officer or employee of the Board or
Department, except as required by other law or allowed
under subparagraph (B) or (D), shall be considered a
violation of this subtitle.
(D) General statements.--Nothing in this paragraph
prohibits--
(i) the issuance of general statements based
on the reports of a number of persons subject to
an order
[[Page 110 STAT. 1056]]
or statistical data collected from the reports, if
the statements do not identify the information
furnished by any person; or
(ii) the publication, by direction of the
Secretary, of the name of a person violating the
order, together with a statement of the particular
provisions of the order violated by the person.
(3) Availability of information for law enforcement.--
Information obtained under this subtitle may be made available
to another agency of the Federal Government for a civil or
criminal law enforcement activity if the activity is authorized
by law and if the head of the agency has made a written request
to the Secretary specifying the particular information desired
and the law enforcement activity for which the information is
sought.
(4) Penalty.--Any person knowingly violating this
subsection, on conviction, shall be subject to a fine of not
more than $1,000 or to imprisonment for not more than 1 year, or
both, and if an officer or employee of the Board or the
Department, shall be removed from office or terminated from
employment, as applicable.
(5) Withholding of information.--Nothing in this subtitle
authorizes the withholding of information from Congress.
(i) Use of Assessments.--The order shall provide that the
assessments collected under section 536 shall be used for payment of the
expenses in implementing and administering this subtitle, with provision
for a reasonable reserve, and to cover administrative costs incurred by
the Secretary in implementing and administering this subtitle.
(j) Other Terms and Conditions.--The order shall contain such other
terms and conditions, not inconsistent with this subtitle, as are
determined necessary by the Secretary to effectuate this subtitle.
SEC. 536. <<NOTE: 7 USC 7445.>> ASSESSMENTS.
(a) In General.--
(1) First purchasers.--During the effective period of an
order issued pursuant to this subtitle, assessments shall be--
(A) levied on all canola or rapeseed produced in the
United States and marketed; and
(B) deducted from the payment made to a producer for
all canola or rapeseed sold to a first purchaser.
(2) Direct processing.--The order shall provide that any
person processing canola or rapeseed of that person's own
production and marketing the canola or rapeseed, or canola or
rapeseed products, shall remit to the Board or a State
organization certified to represent producers under section
535(b)(6), in the manner prescribed by the order, an assessment
established at a rate equivalent to the rate provided for under
subsection (d).
(b) Limitation on Assessments.--No more than 1 assessment may be
assessed under subsection (a) on any canola or rapeseed produced (as
remitted by a first purchaser).
(c) Remitting of Assessments.--
(1) In general.--Assessments required under subsection (a)
shall be remitted to the Board by a first purchaser. The Board
shall use State organizations certified to represent
[[Page 110 STAT. 1057]]
producers under section 535(b)(6) to collect the assessments. If
an appropriate certified State organization does not exist to
collect an assessment, the assessment shall be collected by the
Board. There shall be only 1 certified State organization in
each State.
(2) Times to remit assessment.--Each first purchaser shall
remit the assessment to the Board as provided for in the order.
(d) Assessment Rate.--
(1) Initial rate.--The initial assessment rate shall be 4
cents per hundredweight of canola or rapeseed produced and
marketed.
(2) Increase.--The assessment rate may be increased on
recommendation by the Board to a rate not exceeding 10 cents per
hundredweight of canola or rapeseed produced and marketed in a
State, unless--
(A) after the initial referendum is held under
section 537(a), the Board recommends an increase above
10 cents per hundredweight; and
(B) the increase is approved in a referendum under
section 537(b).
(3) Credit.--A producer who demonstrates to the Board that
the producer is participating in a program of a State
organization certified to represent producers under section
535(b)(6) shall receive credit, in determining the assessment
due from the producer, for contributions to the program of up to
2 cents per hundredweight of canola or rapeseed marketed.
(e) Late Payment Charge.--
(1) In general.--There shall be a late payment charge
imposed on any person who fails to remit, on or before the date
provided for in the order, to the Board the total amount for
which the person is liable.
(2) Amount of charge.--The amount of the late payment charge
imposed under paragraph (1) shall be prescribed by the Board
with the approval of the Secretary.
(f) Refund of Assessments From Escrow Account.--
(1) Establishment of escrow account.--During the period
beginning on the date on which an order is first issued under
section 534(b)(3) and ending on the date on which a referendum
is conducted under section 537(a), the Board shall--
(A) establish and maintain an escrow account to be
used for assessment refunds; and
(B) place funds in the account in accordance with
paragraph (2).
(2) Placement of funds in account.--The Board shall place in
the account, from assessments collected during the period
referred to in paragraph (1), an amount equal to the product
obtained by multiplying the total amount of assessments
collected during the period by 10 percent.
(3) Right to receive refund.--The Board shall refund to a
producer the assessments paid by or on behalf of the producer
if--
(A) the producer is required to pay the assessment;
(B) the producer does not support the program
established under this subtitle; and
[[Page 110 STAT. 1058]]
(C) the producer demands the refund prior to the
conduct of the referendum under section 537(a).
(4) Form of demand.--The demand shall be made in accordance
with such regulations, in such form, and within such time period
as prescribed by the Board.
(5) Making of refund.--The refund shall be made on
submission of proof satisfactory to the Board that the producer
paid the assessment for which the refund is demanded.
(6) Proration.--If--
(A) the amount in the escrow account required by
paragraph (1) is not sufficient to refund the total
amount of assessments demanded by eligible producers;
and
(B) the order is not approved pursuant to the
referendum conducted under section 537(a);
the Board shall prorate the amount of the refunds among all
eligible producers who demand a refund.
(7) Program approved.--If the plan is approved pursuant to
the referendum conducted under section 537(a), all funds in the
escrow account shall be returned to the Board for use by the
Board in accordance with this subtitle.
SEC. 537. <<NOTE: 7 USC 7446.>> REFERENDA.
(a) Initial Referendum.--
(1) Requirement.--During the period ending 30 months after
the date on which an order is first issued under section
534(b)(3), the Secretary shall conduct a referendum among
producers who, during a representative period as determined by
the Secretary, have been engaged in the production of canola or
rapeseed for the purpose of ascertaining whether the order then
in effect shall be continued.
(2) Advance notice.--The Secretary shall, to the extent
practicable, provide broad public notice in advance of any
referendum. The notice shall be provided, without advertising
expenses, by means of newspapers, county newsletters, the
electronic media, and press releases, through the use of notices
posted in State and county Cooperative State Research,
Education, and Extension Service offices and county Consolidated
Farm Service Agency offices, and by other appropriate means
specified in the order. The notice shall contain information on
when the referendum will be held, registration and voting
requirements, rules regarding absentee voting, and other
pertinent information.
(3) Approval of order.--The order shall be continued only if
the Secretary determines that the order has been approved by not
less than a majority of the producers voting in the referendum.
(4) <<NOTE: Termination date.>> Disapproval of order.--If
continuation of the order is not approved by a majority of the
producers voting in the referendum, the Secretary shall
terminate collection of assessments under the order within 180
days after the referendum and shall terminate the order in an
orderly manner as soon as practicable.
(b) Additional Referenda.--
(1) In general.--
(A) Requirement.--After the initial referendum on an
order, the Secretary shall conduct additional referenda,
as described in subparagraph (C), if requested by a rep
[[Page 110 STAT. 1059]]
resentative group of producers, as described in
subparagraph (B).
(B) Representative group of producers.--An
additional referendum on an order shall be conducted if
requested by 10 percent or more of the producers who,
during a representative period as determined by the
Secretary, have been engaged in the production of canola
or rapeseed.
(C) Eligible producers.--Each additional referendum
shall be conducted among all producers who, during a
representative period as determined by the Secretary,
have been engaged in the production of canola or
rapeseed to determine whether the producers favor the
termination or suspension of the order.
(2) <<NOTE: Termination date.>> Disapproval of order.--If
the Secretary determines, in a referendum conducted under
paragraph (1), that suspension or termination of the order is
favored by a majority of the producers voting in the referendum,
the Secretary shall suspend or terminate, as appropriate,
collection of assessments under the order within 180 days after
the determination, and shall suspend or terminate the order, as
appropriate, in an orderly manner as soon as practicable after
the determination.
(3) Opportunity to request additional referenda.--
(A) In general.--Beginning on the date that is 5
years after the conduct of a referendum under this
subtitle, and every 5 years thereafter, the Secretary
shall provide canola and rapeseed producers an
opportunity to request an additional referendum.
(B) Method of making request.--
(i) In-person requests.--To carry out
subparagraph (A), the Secretary shall establish a
procedure under which a producer may make a
request for a reconfirmation referendum in person
at a county Cooperative State Research, Education,
and Extension Service office or a county
Consolidated Farm Service Agency office during a
period established by the Secretary, or as
provided in clause (ii).
(ii) Mail-in requests.--In lieu of making a
request in person, a producer may make a request
by mail. To facilitate the submission of requests
by mail, the Secretary may make mail-in request
forms available to producers.
(C) <<NOTE: Federal Register, publication.>>
Notifications.--The Secretary shall publish a notice in
the Federal Register, and the Board shall provide
written notification to producers, not later than 60
days prior to the end of the period established under
subparagraph (B)(i) for an in-person request, of the
opportunity of producers to request an additional
referendum. The notification shall explain the right of
producers to an additional referendum, the procedure for
a referendum, the purpose of a referendum, and the date
and method by which producers may act to request an
additional referendum under this paragraph. The
Secretary shall take such other action as the Secretary
determines is necessary to ensure that producers are
made aware of the opportunity to request an additional
referendum.
[[Page 110 STAT. 1060]]
(D) Action by secretary.--As soon as practicable
following the submission of a request for an additional
referendum, the Secretary shall determine whether a
sufficient number of producers have requested the
referendum, and take such steps as are necessary to
conduct the referendum, as required under paragraph (1).
(E) Time limit.--An additional referendum requested
under the procedures provided in this paragraph shall be
conducted not later than 1 year after the Secretary
determines that a representative group of producers, as
described in paragraph (1)(B), have requested the
conduct of the referendum.
(c) Procedures.--
(1) Reimbursement of secretary.--The Secretary shall be
reimbursed from assessments collected by the Board for any
expenses incurred by the Secretary in connection with the
conduct of an activity required under this section.
(2) Date.--Each referendum shall be conducted for a
reasonable period of time not to exceed 3 days, established by
the Secretary, under a procedure under which producers intending
to vote in the referendum shall certify that the producers were
engaged in the production of canola, rapeseed, or canola or
rapeseed products during the representative period and, at the
same time, shall be provided an opportunity to vote in the
referendum.
(3) Place.--Referenda under this section shall be conducted
at locations determined by the Secretary. On request, absentee
mail ballots shall be furnished by the Secretary in a manner
prescribed by the Secretary.
SEC. 538. <<NOTE: 7 USC 7447.>> PETITION AND REVIEW.
(a) Petition.--
(1) In general.--A person subject to an order issued under
this subtitle may file with the Secretary a petition--
(A) stating that the order, a provision of the
order, or an obligation imposed in connection with the
order is not established in accordance with law; and
(B) requesting a modification of the order or an
exemption from the order.
(2) Hearings.--The petitioner shall be given the opportunity
for a hearing on a petition filed under paragraph (1), in
accordance with regulations issued by the Secretary.
(3) Ruling.--After a hearing under paragraph (2), the
Secretary shall issue a ruling on the petition that is the
subject of the hearing, which shall be final if the ruling is in
accordance with applicable law.
(4) Limitation on petition.--Any petition filed under this
subtitle challenging an order, or any obligation imposed in
connection with an order, shall be filed not later than 2 years
after the effective date of the order or imposition of the
obligation.
(b) Review.--
(1) <<NOTE: Courts.>> Commencement of action.--The district
court of the United States for any district in which the person
who is a petitioner under subsection (a) resides or carries on
business shall have jurisdiction to review a ruling on the
petition, if a complaint is filed by the person not later than
20 days
[[Page 110 STAT. 1061]]
after the date of the entry of a ruling by the Secretary under
subsection (a)(3).
(2) Process.--Service of process in a proceeding under
paragraph (1) shall be conducted in accordance with the Federal
Rules of Civil Procedure.
(3) Remands.--If the court determines, under paragraph (1),
that a ruling issued under subsection (a)(3) is not in
accordance with applicable law, the court shall remand the
matter to the Secretary with directions either--
(A) to make such ruling as the court shall determine
to be in accordance with law; or
(B) to take such further proceedings as, in the
opinion of the court, the law requires.
(4) Enforcement.--The pendency of proceedings instituted
under subsection (a) shall not impede, hinder, or delay the
Attorney General or the Secretary from taking any action under
section 539.
SEC. 539. <<NOTE: Courts. 7 USC 7448.>> ENFORCEMENT.
(a) Jurisdiction.--The district courts of the United States are
vested with jurisdiction specifically to enforce, and to prevent and
restrain any person from violating, an order or regulation made or
issued under this subtitle.
(b) Referral to Attorney General.--A civil action authorized to be
commenced under this section shall be referred to the Attorney General
for appropriate action, except that the Secretary shall not be required
to refer to the Attorney General a violation of this subtitle if the
Secretary believes that the administration and enforcement of this
subtitle would be adequately served by providing a suitable written
notice or warning to the person committing the violation or by
administrative action under subsection (c).
(c) Civil Penalties and Orders.--
(1) Civil penalties.--
(A) In general.--Any person who willfully violates
any provision of an order or regulation issued by the
Secretary under this subtitle, or who fails or refuses
to pay, collect, or remit an assessment or fee required
of the person under an order or regulation, may be
assessed--
(i) a civil penalty by the Secretary of not
more than $1,000 for each violation; and
(ii) in the case of a willful failure to pay,
collect, or remit an assessment as required by an
order or regulation, an additional penalty equal
to the amount of the assessment.
(B) Separate offense.--Each violation under
subparagraph (A) shall be a separate offense.
(2) Cease-and-desist orders.--In addition to, or in lieu of,
a civil penalty under paragraph (1), the Secretary may issue an
order requiring a person to cease and desist from continuing a
violation.
(3) Notice and hearing.--No penalty shall be assessed, or
cease-and-desist order issued, by the Secretary under this
subsection unless the person against whom the penalty is
assessed or the cease-and-desist order is issued is given notice
and opportunity for a hearing before the Secretary with respect
to the violation.
[[Page 110 STAT. 1062]]
(4) Finality.--The order of the Secretary assessing a
penalty or imposing a cease-and-desist order under this
subsection shall be final and conclusive unless the affected
person files an appeal of the order in the appropriate district
court of the United States in accordance with subsection (d).
(d) Review by District Court.--
(1) Commencement of action.--Any person who has been
determined to be in violation of this subtitle, or against whom
a civil penalty has been assessed or a cease-and-desist order
issued under subsection (c), may obtain review of the penalty or
cease-and-desist order by--
(A) filing, within the 30-day period beginning on
the date the penalty is assessed or cease-and-desist
order issued, a notice of appeal in--
(i) the district court of the United States
for the district in which the person resides or
carries on business; or
(ii) the United States District Court for the
District of Columbia; and
(B) simultaneously sending a copy of the notice by
certified mail to the Secretary.
(2) Record.--The Secretary shall file promptly, in the
appropriate court referred to in paragraph (1), a certified copy
of the record on which the Secretary determined that the person
committed the violation.
(3) Standard of review.--A finding of the Secretary under
this section shall be set aside only if the finding is found to
be unsupported by substantial evidence.
(e) Failure To Obey Cease-and-Desist Orders.--Any person who fails
to obey a cease-and-desist order issued under this section after the
cease-and-desist order has become final and unappealable, or after the
appropriate United States district court has entered a final judgment in
favor of the Secretary, shall be subject to a civil penalty assessed by
the Secretary, after opportunity for a hearing and for judicial review
under the procedures specified in subsections (c) and (d), of not more
than $5,000 for each offense. Each day during which the failure
continues shall be considered as a separate violation of the cease-and-
desist order.
(f) Failure To Pay Penalties.--If a person fails to pay an
assessment of a civil penalty under this section after the assessment
has become a final and unappealable order, or after the appropriate
United States district court has entered final judgment in favor of the
Secretary, the Secretary shall refer the matter to the Attorney General
for recovery of the amount assessed in the district court of the United
States for any district in which the person resides or carries on
business. In an action for recovery, the validity and appropriateness of
the final order imposing the civil penalty shall not be subject to
review.
(g) Additional Remedies.--The remedies provided in this subtitle
shall be in addition to, and not exclusive of, other remedies that may
be available.
SEC. 540. <<NOTE: 7 USC 7449.>> INVESTIGATIONS AND POWER TO SUBPOENA.
(a) Investigations.--The Secretary may make such investigations as
the Secretary considers necessary--
(1) for the effective administration of this subtitle; and
[[Page 110 STAT. 1063]]
(2) to determine whether any person has engaged or is
engaging in an act that constitutes a violation of this
subtitle, or an order, rule, or regulation issued under this
subtitle.
(b) Subpoenas, Oaths, and Affirmations.--
(1) In general.--For the purpose of an investigation under
subsection (a), the Secretary may administer oaths and
affirmations, subpoena witnesses, take evidence, and issue
subpoenas to require the production of any records that are
relevant to the inquiry. The attendance of witnesses and the
production of records may be required from any place in the
United States.
(2) Administrative hearings.--For the purpose of an
administrative hearing held under section 538 or 539, the
presiding officer is authorized to administer oaths and
affirmations, subpoena and compel the attendance of witnesses,
take evidence, and require the production of any records that
are relevant to the inquiry. The attendance of witnesses and the
production of records may be required from any place in the
United States.
(c) Aid of Courts.--In the case of contumacy by, or refusal to obey
a subpoena issued to, any person, the Secretary may invoke the aid of
any court of the United States within the jurisdiction of which the
investigation or proceeding is carried on, or where the person resides
or carries on business, in order to enforce a subpoena issued by the
Secretary under subsection (b). The court may issue an order requiring
the person to comply with the subpoena.
(d) Contempt.--A failure to obey an order of the court under this
section may be punished by the court as contempt of the court.
(e) Process.--Process may be served on a person in the judicial
district in which the person resides or carries on business or wherever
the person may be found.
(f) Hearing Site.--The site of a hearing held under section 538 or
539 shall be in the judicial district where the person affected by the
hearing resides or has a principal place of business.
SEC. 541. <<NOTE: 7 USC 7450.>> SUSPENSION OR TERMINATION.
The Secretary shall, whenever the Secretary finds that an order or a
provision of an order obstructs or does not tend to effectuate the
declared policy of this subtitle, suspend or terminate the operation of
the order or provision. The suspension or termination of an order shall
not be considered an order within the meaning of this subtitle.
SEC. 542. <<NOTE: 7 USC 7451.>> REGULATIONS.
The Secretary may issue such regulations as are necessary to carry
out this subtitle.
SEC. 543. <<NOTE: 7 USC 7452.>> AUTHORIZATION OF APPROPRIATIONS.
(a) In General.--There are authorized to be appropriated for each
fiscal year such sums as are necessary to carry out this subtitle.
(b) Administrative Expenses.--Funds appropriated under subsection
(a) shall not be available for payment of the expenses or expenditures
of the Board in administering a provision of an order issued under this
subtitle.
[[Page 110 STAT. 1064]]
Subtitle D <<NOTE: National Kiwifruit Research, Promotion, and Consumer
Information Act.>> --Kiwifruit
SEC. 551. <<NOTE: 7 USC 7401 note.>> SHORT TITLE.
This subtitle may be cited as the ``National Kiwifruit Research,
Promotion, and Consumer Information Act''.
SEC. 552. <<NOTE: 7 USC 7461.>> FINDINGS AND PURPOSES.
(a) Findings.--Congress finds that--
(1) domestically produced kiwifruit are grown by many
individual producers;
(2) virtually all domestically produced kiwifruit are grown
in the State of California, although there is potential for
production in many other areas of the United States;
(3) kiwifruit move in interstate and foreign commerce, and
kiwifruit that do not move in channels of commerce directly
burden or affect interstate commerce;
(4) in recent years, large quantities of kiwifruit have been
imported into the United States;
(5) the maintenance and expansion of existing domestic and
foreign markets for kiwifruit, and the development of additional
and improved markets for kiwifruit, are vital to the welfare of
kiwifruit producers and other persons concerned with producing,
marketing, and processing kiwifruit;
(6) a coordinated program of research, promotion, and
consumer information regarding kiwifruit is necessary for the
maintenance and development of the markets; and
(7) kiwifruit producers, handlers, and importers are unable
to implement and finance such a program without cooperative
action.
(b) Purposes.--The purposes of this subtitle are--
(1) to authorize the establishment of an orderly procedure
for the development and financing (through an assessment) of an
effective and coordinated program of research, promotion, and
consumer information regarding kiwifruit;
(2) to use the program to strengthen the position of the
kiwifruit industry in domestic and foreign markets and maintain,
develop, and expand markets for kiwifruit; and
(3) to treat domestically produced kiwifruit and imported
kiwifruit equitably.
SEC. 553. <<NOTE: 7 USC 7462.>> DEFINITIONS.
In this subtitle (unless the context otherwise requires):
(1) Board.--The term ``Board'' means the National Kiwifruit
Board established under section 555.
(2) Consumer information.--The term ``consumer information''
means any action taken to provide information to, and broaden
the understanding of, the general public regarding the
consumption, use, nutritional attributes, and care of kiwifruit.
(3) Exporter.--The term ``exporter'' means any person from
outside the United States who exports kiwifruit into the United
States.
(4) Handler.--The term ``handler'' means any person,
excluding a common carrier, engaged in the business of buying
and selling, packing, marketing, or distributing kiwifruit as
specified in the order.
[[Page 110 STAT. 1065]]
(5) Importer.--The term ``importer'' means any person who
imports kiwifruit into the United States.
(6) Kiwifruit.--The term ``kiwifruit'' means all varieties
of fresh kiwifruit grown in or imported into the United States.
(7) Marketing.--The term ``marketing'' means the sale or
other disposition of kiwifruit into interstate, foreign, or
intrastate commerce by buying, marketing, distribution, or
otherwise placing kiwifruit into commerce.
(8) Order.--The term ``order'' means a kiwifruit research,
promotion, and consumer information order issued by the
Secretary under section 554.
(9) Person.--The term ``person'' means any individual, group
of individuals, partnership, corporation, association,
cooperative, or other legal entity.
(10) Processing.--The term ``processing'' means canning,
fermenting, distilling, extracting, preserving, grinding,
crushing, or in any manner changing the form of kiwifruit for
the purpose of preparing the kiwifruit for market or marketing
the kiwifruit.
(11) Producer.--The term ``producer'' means any person who
grows kiwifruit in the United States for sale in commerce.
(12) Promotion.--The term ``promotion'' means any action
taken under this subtitle (including paid advertising) to
present a favorable image of kiwifruit to the general public for
the purpose of improving the competitive position of kiwifruit
and stimulating the sale of kiwifruit.
(13) Research.--The term ``research'' means any type of
research relating to the use, nutritional value, and marketing
of kiwifruit conducted for the purpose of advancing the image,
desirability, marketability, or quality of kiwifruit.
(14) Secretary.--The term ``Secretary'' means the Secretary
of Agriculture.
(15) United states.--The term ``United States'' means the 50
States of the United States, the District of Columbia, and the
Commonwealth of Puerto Rico.
SEC. 554. <<NOTE: 7 USC 7463.>> ISSUANCE OF ORDERS.
(a) Issuance.--To effectuate the purposes of this subtitle specified
in section 552(b), the Secretary shall issue an order applicable to
producers, handlers, and importers of kiwifruit. Any such order shall be
national in scope. Not more than 1 order shall be in effect under this
subtitle at any 1 time.
(b) Procedure.--
(1) Proposal for issuance of order.--Any person that will be
affected by this subtitle may request the issuance of, and
submit a proposal for, an order under this subtitle.
(2) <<NOTE: Publication.>> Proposed order.--Not later than
90 days after the receipt of a request and proposal for an
order, the Secretary shall publish a proposed order and give due
notice and opportunity for public comment on the proposed order.
(3) Issuance of order.--After notice and opportunity for
public comment are provided under paragraph (2), the Secretary
shall issue an order, taking into consideration the comments
received and including in the order provisions necessary to
ensure that the order is in conformity with this subtitle.
[[Page 110 STAT. 1066]]
(c) Amendments.--The Secretary may amend any order issued under this
section. The provisions of this subtitle applicable to an order shall be
applicable to an amendment to an order.
SEC. 555. <<NOTE: 7 USC 7464.>> NATIONAL KIWIFRUIT BOARD.
(a) Membership.--An order issued by the Secretary under section 554
shall provide for the establishment of a National Kiwifruit Board that
consists of the following 11 members:
(1) 6 members who are producers (or representatives of
producers) and who are not exempt from an assessment under
section 556(b).
(2) 4 members who are importers (or representatives of
importers) and who are not exempt from an assessment under
section 556(b) or are exporters (or representatives of
exporters).
(3) 1 member appointed from the general public.
(b) Adjustment of Membership.--
(1) In general.--Subject to the 11-member limit and to
paragraph (2), the Secretary may adjust membership on the Board
to accommodate changes in production and import levels of
kiwifruit.
(2) Number of producer members.--Producers shall comprise
not less than 51 percent of the membership of the Board.
(c) Appointment and Nomination.--
(1) Appointment.--The Secretary shall appoint the members of
the Board from nominations submitted in accordance with this
subsection.
(2) Producers.--The members referred to in subsection (a)(1)
shall be appointed from individuals nominated by producers.
(3) Importers and exporters.--The members referred to in
subsection (a)(2) shall be appointed from individuals nominated
by importers or exporters.
(4) Public representative.--The public representative shall
be appointed from nominations submitted by other members of the
Board.
(5) Failure to nominate.--If producers, importers, and
exporters fail to nominate individuals for appointment, the
Secretary may appoint members and alternates on a basis provided
for in the order. If the Board fails to nominate a public
representative, the member may be appointed by the Secretary
without a nomination.
(d) Alternates.--The Secretary shall appoint an alternate for each
member of the Board. An alternate shall--
(1) be appointed in the same manner as the member for whom
the individual is an alternate; and
(2) serve on the Board if the member is absent from a
meeting or is disqualified under subsection (f).
(e) Terms.--A member of the Board shall be appointed for a term of 3
years. No member may serve more than 2 consecutive 3-year terms, except
that of the members first appointed--
(1) 5 members shall be appointed for a term of 2 years; and
(2) 6 members shall be appointed for a term of 3 years.
(f) Disqualification.--If a member or alternate of the Board who was
appointed as a producer, importer, exporter, or public representative
member ceases to belong to the group for which
[[Page 110 STAT. 1067]]
the member was appointed, the member or alternate shall be disqualified
from serving on the Board.
(g) Compensation.--A member or alternate of the Board shall serve
without pay.
(h) General Powers and Duties.--The Board shall--
(1) administer an order issued by the Secretary under
section 554, and an amendment to the order, in accordance with
the order and amendment and this subtitle;
(2) <<NOTE: Regulations.>> prescribe rules and regulations
to carry out the order;
(3) meet, organize, and select from among members of the
Board a chairperson, other officers, and committees and
subcommittees, as the Board determines appropriate;
(4) receive, investigate, and report to the Secretary
accounts of violations of the order;
(5) make recommendations to the Secretary with respect to an
amendment that should be made to the order; and
(6) employ or contract with a manager and staff to assist in
administering the order, except that, to reduce administrative
costs and increase efficiency, the Board shall seek, to the
extent practicable, to employ or contract with personnel who are
already associated with organizations involved in promoting
kiwifruit that are chartered by a State, the District of
Columbia, or the Commonwealth of Puerto Rico.
SEC. 556. <<NOTE: 7 USC 7465.>> REQUIRED TERMS IN ORDER.
(a) Budgets and Plans.--
(1) In general.--An order issued under section 554 shall
provide for periodic budgets and plans in accordance with this
subsection.
(2) Budgets.--The Board shall prepare and submit to the
Secretary a budget prior to the beginning of the fiscal year of
the anticipated expenses and disbursements of the Board in the
administration of the order, including probable costs of
research, promotion, and consumer information. A budget shall
become effective on a \2/3\-vote of a quorum of the Board and
approval by the Secretary.
(3) Plans.--Each budget shall include a plan for research,
promotion, and consumer information regarding kiwifruit. A plan
under this paragraph shall become effective on approval by the
Secretary. The Board may enter into contracts and agreements, on
approval by the Secretary, for--
(A) the development and carrying out of the plan;
and
(B) the payment of the cost of the plan, with funds
collected pursuant to this subtitle.
(b) Assessments.--
(1) In general.--The order shall provide for the imposition
and collection of assessments with regard to the production and
importation of kiwifruit in accordance with this subsection.
(2) Rate.--The assessment rate shall be the rate that is
recommended by a \2/3\-vote of a quorum of the Board and
approved by the Secretary, except that the rate shall not exceed
$0.10 per 7-pound tray of kiwifruit or an equivalent rate.
(3) Collection by first handlers.--Except as provided in
paragraph (5), the first handler of kiwifruit shall--
[[Page 110 STAT. 1068]]
(A) be responsible for the collection from the
producer, and payment to the Board, of assessments
required under this subsection; and
(B) maintain a separate record of the kiwifruit of
each producer whose kiwifruit are so handled, including
the kiwifruit owned by the handler.
(4) Importers.--The assessment on imported kiwifruit shall
be paid by the importer to the United States Customs Service at
the time of entry into the United States and shall be remitted
to the Board.
(5) Exemption from assessment.--The following persons or
activities are exempt from an assessment under this subsection:
(A) A producer who produces less than 500 pounds of
kiwifruit per year.
(B) An importer who imports less than 10,000 pounds
of kiwifruit per year.
(C) A sale of kiwifruit made directly from the
producer to a consumer for a purpose other than resale.
(D) The production or importation of kiwifruit for
processing.
(6) Claim of exemption.--To claim an exemption under
paragraph (5) for a particular year, a person shall--
(A) submit an application to the Board stating the
basis for the exemption and certifying that the quantity
of kiwifruit produced, imported, or sold by the person
will not exceed any poundage limitation required for the
exemption in the year; or
(B) be on a list of approved processors developed by
the Board.
(c) Use of Assessments.--
(1) Authorized uses.--The order shall provide that funds
paid to the Board as assessments under subsection (b) may be
used by the Board--
(A) to pay for research, promotion, and consumer
information described in the budget of the Board under
subsection (a) and for other expenses incurred by the
Board in the administration of an order;
(B) to pay such other expenses for the
administration, maintenance, and functioning of the
Board (including any enforcement efforts for the
collection of assessments) as may be authorized by the
Secretary, including interest and penalties for late
payments; and
(C) to fund a reserve established under section
557(d).
(2) Required uses.--The order shall provide that funds paid
to the Board as assessments under subsection (b) shall be used
by the Board--
(A) to pay the expenses incurred by the Secretary,
including salaries and expenses of Federal Government
employees, in implementing and administering the order;
and
(B) to reimburse the Secretary for any expenses
incurred by the Secretary in conducting referenda under
this subtitle.
(3) Limitation on use of assessments.--Except for the first
year of operation of the Board, expenses for the administra
[[Page 110 STAT. 1069]]
tion, maintenance, and functioning of the Board may not exceed
30 percent of the budget for a year.
(d) False Claims.--The order shall provide that any promotion funded
with assessments collected under subsection (b) may not make--
(1) any false claims on behalf of kiwifruit; and
(2) any false statements with respect to the attributes or
use of any product that competes with kiwifruit for sale in
commerce.
(e) Prohibition on Use of Funds.--The order shall provide that funds
collected by the Board under this subtitle through assessments may not,
in any manner, be used for the purpose of influencing legislation or
governmental policy or action, except for making recommendations to the
Secretary as provided for under this subtitle.
(f) Books, Records, and Reports.--
(1) Board.--The order shall require the Board--
(A) to maintain books and records with respect to
the receipt and disbursement of funds received by the
Board;
(B) to submit to the Secretary from time to time
such reports as the Secretary may require for
appropriate accounting; and
(C) to submit to the Secretary at the end of each
fiscal year a complete audit report by an independent
auditor regarding the activities of the Board during the
fiscal year.
(2) Others.--To make information and data available to the
Board and the Secretary that is appropriate or necessary for the
effectuation, administration, or enforcement of this subtitle
(or any order or regulation issued under this subtitle), the
order shall require handlers and importers who are responsible
for the collection, payment, or remittance of assessments under
subsection (b)--
(A) to maintain and make available for inspection by
the employees and agents of the Board and the Secretary
such books and records as may be required by the order;
and
(B) to file, at the times and in the manner and
content prescribed by the order, reports regarding the
collection, payment, or remittance of the assessments.
(g) Confidentiality.--
(1) In general.--The order shall require that all
information obtained pursuant to subsection (f)(2) be kept
confidential by all officers, employees, and agents of the
Department of Agriculture and of the Board. Only such
information as the Secretary considers relevant shall be
disclosed to the public and only in a suit or administrative
hearing, brought at the request of the Secretary or to which the
Secretary or any officer of the United States is a party,
involving the order with respect to which the information was
furnished or acquired.
(2) Limitations.--Nothing in this subsection prohibits--
(A) the issuance of general statements based on the
reports of a number of handlers and importers subject to
an order, if the statements do not identify the
information furnished by any person; or
[[Page 110 STAT. 1070]]
(B) the publication, by direction of the Secretary,
of the name of any person violating an order issued
under section 554(a), together with a statement of the
particular provisions of the order violated by the
person.
(3) Penalty.--Any person who willfully violates this
subsection, on conviction, shall be subject to a fine of not
more than $1,000 or to imprisonment for not more than 1 year, or
both, and, if the person is a member, officer, or agent of the
Board or an employee of the Department of Agriculture, shall be
removed from office.
(h) Withholding of Information.--Nothing in this subtitle authorizes
the withholding of information from Congress.
SEC. 557. <<NOTE: 7 USC 7466.>> PERMISSIVE TERMS IN ORDER.
(a) Permissive Terms.--On the recommendation of the Board and with
the approval of the Secretary, an order issued under section 554 may
include the terms and conditions specified in this section and such
additional terms and conditions as the Secretary considers necessary to
effectuate the other provisions of the order and are incidental to, and
not inconsistent with, this subtitle.
(b) Alternative Payment and Reporting Schedules.--The order may
authorize the Board to designate different handler payment and reporting
schedules to recognize differences in marketing practices and
procedures.
(c) Working Groups.--The order may authorize the Board to convene
working groups drawn from producers, handlers, importers, exporters, or
the general public and utilize the expertise of the groups to assist in
the development of research and marketing programs for kiwifruit.
(d) Reserve Funds.--The order may authorize the Board to accumulate
reserve funds from assessments collected pursuant to section 556(b) to
permit an effective and continuous coordinated program of research,
promotion, and consumer information in years in which production and
assessment income may be reduced, except that any reserve fund may not
exceed the amount budgeted for operation of this subtitle for 1 year.
(e) Promotion Activities Outside United States.--The order may
authorize the Board to use, with the approval of the Secretary, funds
collected under section 556(b) and funds from other sources for the
development and expansion of sales in foreign markets of kiwifruit
produced in the United States.
SEC. 558. <<NOTE: 7 USC 7467.>> PETITION AND REVIEW.
(a) Petition.--
(1) In general.--A person subject to an order may file with
the Secretary a petition--
(A) stating that the order, a provision of the
order, or an obligation imposed in connection with the
order is not in accordance with law; and
(B) requesting a modification of the order or an
exemption from the order.
(2) Hearings.--A person submitting a petition under
paragraph (1) shall be given an opportunity for a hearing on the
petition, in accordance with regulations issued by the
Secretary.
(3) Ruling.--After the hearing, the Secretary shall issue a
ruling on the petition which shall be final if the petition is
in accordance with law.
[[Page 110 STAT. 1071]]
(4) Limitation on petition.--Any petition filed under this
subtitle challenging an order, or any obligation imposed in
connection with an order, shall be filed not later than 2 years
after the effective date of the order or imposition of the
obligation.
(b) <<NOTE: Courts.>> Review.--
(1) Commencement of action.--The district court of the
United States for any district in which the person who is a
petitioner under subsection (a) resides or carries on business
is vested with jurisdiction to review the ruling on the petition
of the person, if a complaint for that purpose is filed not
later than 20 days after the date of the entry of a ruling by
the Secretary under subsection (a).
(2) Process.--Service of process in the proceedings shall be
conducted in accordance with the Federal Rules of Civil
Procedure.
(3) Remands.--If the court determines that the ruling is not
in accordance with law, the court shall remand the matter to the
Secretary with directions--
(A) to make such ruling as the court shall determine
to be in accordance with law; or
(B) to take such further action as, in the opinion
of the court, the law requires.
(4) Enforcement.--The pendency of a proceeding instituted
pursuant to subsection (a) shall not impede, hinder, or delay
the Attorney General or the Secretary from obtaining relief
pursuant to section 559.
SEC. 559. <<NOTE: Courts. 7 USC 7468.>> ENFORCEMENT.
(a) Jurisdiction.--A district court of the United States shall have
jurisdiction specifically to enforce, and to prevent and restrain any
person from violating, any order or regulation made or issued by the
Secretary under this subtitle.
(b) Referral to Attorney General.--A civil action authorized to be
brought under this section shall be referred to the Attorney General for
appropriate action, except that the Secretary is not required to refer
to the Attorney General a violation of this subtitle, or any order or
regulation issued under this subtitle, if the Secretary believes that
the administration and enforcement of this subtitle would be adequately
served by administrative action under subsection (c) or suitable written
notice or warning to the person committing the violation.
(c) Civil Penalties and Orders.--
(1) Civil penalties.--Any person who willfully violates any
provision of any order or regulation issued by the Secretary
under this subtitle, or who fails or refuses to pay, collect, or
remit any assessment or fee duly required of the person under
the order or regulation, may be assessed a civil penalty by the
Secretary of not less than $500 nor more than $5,000 for each
such violation. Each violation shall be a separate offense.
(2) Cease-and-desist orders.--In addition to or in lieu of
the civil penalty, the Secretary may issue an order requiring
the person to cease and desist from continuing the violation.
(3) Notice and hearing.--No order assessing a civil penalty
or cease-and-desist order may be issued by the Secretary under
this subsection unless the Secretary gives the person
[[Page 110 STAT. 1072]]
against whom the order is issued notice and opportunity for a
hearing on the record before the Secretary with respect to the
violation.
(4) Finality.--The order of the Secretary assessing a
penalty or imposing a cease-and-desist order shall be final and
conclusive unless the person against whom the order is issued
files an appeal of the order in the appropriate district court
of the United States, in accordance with subsection (d).
(d) Review by United States District Court.--
(1) Commencement of action.--Any person against whom a
violation is found and a civil penalty assessed or cease-and-
desist order issued under subsection (c) may obtain review of
the penalty or cease-and-desist order in the district court of
the United States for the district in which the person resides
or carries on business, or the United States District Court for
the District of Columbia, by--
(A) filing a notice of appeal in the court not later
than 30 days after the date on which the penalty is
assessed or cease-and-desist order issued; and
(B) simultaneously sending a copy of the notice by
certified mail to the Secretary.
(2) Record.--The Secretary shall promptly file in the court
a certified copy of the record on which the Secretary found that
the person committed the violation.
(3) Standard of review.--A finding of the Secretary shall be
set aside only if the finding is found to be unsupported by
substantial evidence.
(e) Failure To Obey Cease-and-Desist Orders.--Any person who fails
to obey a cease-and-desist order issued by the Secretary after the
cease-and-desist order has become final and unappealable, or after the
appropriate United States district court has entered a final judgment in
favor of the Secretary, shall be subject to a civil penalty assessed by
the Secretary, after opportunity for a hearing and for judicial review
under the procedures specified in subsections (c) and (d), of not more
than $500 for each offense. Each day during which the failure continues
shall be considered a separate violation of the cease-and-desist order.
(f) Failure To Pay Penalties.--If a person fails to pay an
assessment of a civil penalty after the assessment has become a final
and unappealable order issued by the Secretary, or after the appropriate
United States district court has entered final judgment in favor of the
Secretary, the Secretary shall refer the matter to the Attorney General
for recovery of the amount assessed in the district court of the United
States for any district in which the person resides or carries on
business. In an action for recovery, the validity and appropriateness of
the final order imposing the civil penalty shall not be subject to
review.
SEC. 560. <<NOTE: 7 USC 7469.>> INVESTIGATIONS AND POWER TO SUBPOENA.
(a) In General.--The Secretary may make such investigations as the
Secretary considers necessary--
(1) for the effective carrying out of the responsibilities
of the Secretary under this subtitle; or
(2) to determine whether a person subject to this subtitle
has engaged or is engaging in any act that constitutes a
violation of this subtitle, or any order, rule, or regulation
issued under this subtitle.
[[Page 110 STAT. 1073]]
(b) Power to Subpoena.--
(1) Investigations.--For the purpose of an investigation
made under subsection (a), the Secretary may administer oaths
and affirmations and may issue subpoenas to require the
production of any records that are relevant to the inquiry. The
production of any such records may be required from any place in
the United States.
(2) Administrative hearings.--For the purpose of an
administrative hearing held under section 558 or 559, the
presiding officer is authorized to administer oaths and
affirmations, subpoena witnesses, compel the attendance of
witnesses, take evidence, and require the production of any
records that are relevant to the inquiry. The attendance of
witnesses and the production of any such records may be required
from any place in the United States.
(c) Aid of Courts.--In the case of contumacy by, or refusal to obey
a subpoena to, any person, the Secretary may invoke the aid of any court
of the United States within the jurisdiction of which the investigation
or proceeding is carried on, or where the person resides or carries on
business, to enforce a subpoena issued by the Secretary under subsection
(b). The court may issue an order requiring the person to comply with
the subpoena.
(d) Contempt.--Any failure to obey the order of the court may be
punished by the court as a contempt of the court.
(e) Process.--Process in any such case may be served in the judicial
district in which the person resides or carries on business or wherever
the person may be found.
(f) Hearing Site.--The site of any hearing held under section 558 or
559 shall be in the judicial district where the person affected by the
hearing resides or has a principal place of business.
SEC. 561. <<NOTE: 7 USC 7470.>> REFERENDA.
(a) Initial Referendum.--
(1) Referendum required.--During the 60-day period
immediately preceding the proposed effective date of an order
issued under section 554, the Secretary shall conduct a
referendum among kiwifruit producers and importers who will be
subject to assessments under the order, to ascertain whether
producers and importers approve the implementation of the order.
(2) Approval of order.--The order shall become effective, as
provided in section 554, if the Secretary determines that--
(A) the order has been approved by a majority of the
producers and importers voting in the referendum; and
(B) the producers and importers favoring approval
produce and import more than 50 percent of the total
volume of kiwifruit produced and imported by persons
voting in the referendum.
(b) Subsequent Referenda.--The Secretary may periodically conduct a
referendum to determine if kiwifruit producers and importers favor the
continuation, termination, or suspension of any order issued under
section 554 that is in effect at the time of the referendum.
(c) Required Referenda.--The Secretary shall hold a referendum under
subsection (b)--
[[Page 110 STAT. 1074]]
(1) at the end of the 6-year period beginning on the
effective date of the order and at the end of each subsequent 6-
year period;
(2) at the request of the Board; or
(3) if not less than 30 percent of the kiwifruit producers
and importers subject to assessments under the order submit a
petition requesting the referendum.
(d) Vote.--On completion of a referendum under subsection (b), the
Secretary shall suspend or terminate the order that was subject to the
referendum at the end of the marketing year if--
(1) the suspension or termination of the order is favored by
not less than a majority of the producers and importers voting
in the referendum; and
(2) the producers and importers produce and import more than
50 percent of the total volume of kiwifruit produced and
imported by persons voting in the referendum.
(e) Confidentiality.--The ballots and other information or reports
that reveal, or tend to reveal, the vote of any person under this
subtitle and the voting list shall be held strictly confidential and
shall not be disclosed.
SEC. 562. <<NOTE: 7 USC 7471.>> SUSPENSION OR TERMINATION.
(a) In General.--If the Secretary finds that an order issued under
section 554, or a provision of the order, obstructs or does not tend to
effectuate the purposes of this subtitle, the Secretary shall suspend or
terminate the operation of the order or provision.
(b) Limitation.--The suspension or termination of any order, or any
provision of an order, shall not be considered an order under this
subtitle.
SEC. 563. <<NOTE: 7 USC 7472.>> REGULATIONS.
The Secretary may issue such regulations as are necessary to carry
out this subtitle.
SEC. 564. <<NOTE: 7 USC 7473.>> AUTHORIZATION OF APPROPRIATIONS.
There are authorized to be appropriated for each fiscal year such
sums as are necessary to carry out this subtitle.
Subtitle <<NOTE: Popcorn Promotion, Research, and Consumer Information
Act.>> E--Popcorn
SEC. 571. <<NOTE: 7 USC 7401 note.>> SHORT TITLE.
This subtitle may be cited as the ``Popcorn Promotion, Research, and
Consumer Information Act''.
SEC. 572. <<NOTE: 7 USC 7481.>> FINDINGS AND DECLARATION OF POLICY.
(a) Findings.--Congress finds that--
(1) popcorn is an important food that is a valuable part of
the human diet;
(2) the production and processing of popcorn plays a
significant role in the economy of the United States in that
popcorn is processed by several popcorn processors, distributed
through wholesale and retail outlets, and consumed by millions
of people throughout the United States and foreign countries;
(3) popcorn must be of high quality, readily available,
handled properly, and marketed efficiently to ensure that the
benefits of popcorn are available to the people of the United
States;
[[Page 110 STAT. 1075]]
(4) the maintenance and expansion of existing markets and
uses and the development of new markets and uses for popcorn are
vital to the welfare of processors and persons concerned with
marketing, using, and producing popcorn for the market, as well
as to the agricultural economy of the United States;
(5) the cooperative development, financing, and
implementation of a coordinated program of popcorn promotion,
research, consumer information, and industry information is
necessary to maintain and expand markets for popcorn; and
(6) popcorn moves in interstate and foreign commerce, and
popcorn that does not move in those channels of commerce
directly burdens or affects interstate commerce in popcorn.
(b) Policy.--It is the policy of Congress that it is in the public
interest to authorize the establishment, through the exercise of the
powers provided in this subtitle, of an orderly procedure for
developing, financing (through adequate assessments on unpopped popcorn
processed domestically), and carrying out an effective, continuous, and
coordinated program of promotion, research, consumer information, and
industry information designed to--
(1) strengthen the position of the popcorn industry in the
marketplace; and
(2) maintain and expand domestic and foreign markets and
uses for popcorn.
(c) Purposes.--The purposes of this subtitle are to--
(1) maintain and expand the markets for all popcorn products
in a manner that--
(A) is not designed to maintain or expand any
individual share of a producer or processor of the
market;
(B) does not compete with or replace individual
advertising or promotion efforts designed to promote
individual brand name or trade name popcorn products;
and
(C) authorizes and funds programs that result in
government speech promoting government objectives; and
(2) establish a nationally coordinated program for popcorn
promotion, research, consumer information, and industry
information.
(d) Statutory Construction.--This subtitle treats processors
equitably. Nothing in this subtitle--
(1) provides for the imposition of a trade barrier to the
entry into the United States of imported popcorn for the
domestic market; or
(2) provides for the control of production or otherwise
limits the right of any individual processor to produce popcorn.
SEC. 573. <<NOTE: 7 USC 7482.>> DEFINITIONS.
In this subtitle (unless the context otherwise requires):
(1) Board.--The term ``Board'' means the Popcorn Board
established under section 575(b).
(2) Commerce.--The term ``commerce'' means interstate,
foreign, or intrastate commerce.
(3) Consumer information.--The term ``consumer information''
means information and programs that will assist consumers and
other persons in making evaluations and decisions regarding the
purchase, preparation, and use of popcorn.
[[Page 110 STAT. 1076]]
(4) Department.--The term ``Department'' means the
Department of Agriculture.
(5) Industry information.--The term ``industry information''
means information or a program that will lead to the development
of--
(A) new markets, new marketing strategies, or
increased efficiency for the popcorn industry; or
(B) activities to enhance the image of the popcorn
industry.
(6) Marketing.--The term ``marketing'' means the sale or
other disposition of unpopped popcorn for human consumption in a
channel of commerce, but does not include a sale or disposition
to or between processors.
(7) Order.--The term ``order'' means an order issued under
section 574.
(8) Person.--The term ``person'' means an individual, group
of individuals, partnership, corporation, association, or
cooperative, or any other legal entity.
(9) Popcorn.--The term ``popcorn'' means unpopped popcorn
(Zea Mays L) that is--
(A) commercially grown;
(B) processed in the United States by shelling,
cleaning, or drying; and
(C) introduced into a channel of commerce.
(10) Process.--The term ``process'' means to shell, clean,
dry, and prepare popcorn for the market, but does not include
packaging popcorn for the market without also engaging in
another activity described in this paragraph.
(11) Processor.--The term ``processor'' means a person
engaged in the preparation of unpopped popcorn for the market
who owns or shares the ownership and risk of loss of the popcorn
and who processes and distributes over 4,000,000 pounds of
popcorn in the market per year.
(12) Promotion.--The term ``promotion'' means an action,
including paid advertising, to enhance the image or desirability
of popcorn.
(13) Research.--The term ``research'' means any type of
study to advance the image, desirability, marketability,
production, product development, quality, or nutritional value
of popcorn.
(14) Secretary.--The term ``Secretary'' means the Secretary
of Agriculture.
(15) State.--The term ``State'' means each of the 50 States
and the District of Columbia.
(16) United states.--The term ``United States'' means all of
the States.
SEC. 574. <<NOTE: 7 USC 7483.>> ISSUANCE OF ORDERS.
(a) In General.--To effectuate the policy described in section
572(b), the Secretary, subject to subsection (b), shall issue 1 or more
orders applicable to processors. An order shall be applicable to all
popcorn production and marketing areas in the United States. Not more
than 1 order shall be in effect under this subtitle at any 1 time.
(b) Procedure.--
(1) Proposal or request for issuance.--The Secretary may
propose the issuance of an order, or an association of
[[Page 110 STAT. 1077]]
processors or any other person that would be affected by an
order may request the issuance of, and submit a proposal for, an
order.
(2) <<NOTE: Publication.>> Notice and comment concerning
proposed order.--Not later than 60 days after the receipt of a
request and proposal for an order under paragraph (1), or at
such time as the Secretary determines to propose an order, the
Secretary shall publish a proposed order and give due notice and
opportunity for public comment on the proposed order.
(3) Issuance of order.--After notice and opportunity for
public comment under paragraph (2), the Secretary shall issue an
order, taking into consideration the comments received and
including in the order such provisions as are necessary to
ensure that the order conforms to this subtitle. The order shall
be issued and become effective not later than 150 days after the
date of publication of the proposed order.
(c) Amendments.--The Secretary, as appropriate, may amend an order.
The provisions of this subtitle applicable to an order shall be
applicable to any amendment to an order, except that an amendment to an
order may not require a referendum to become effective.
SEC. 575. <<NOTE: 7 USC 7484.>> REQUIRED TERMS IN ORDERS.
(a) In General.--An order shall contain the terms and conditions
specified in this section.
(b) Establishment and Membership of Popcorn Board.--
(1) In general.--The order shall provide for the
establishment of, and appointment of members to, a Popcorn Board
that shall consist of not fewer than 4 members and not more than
9 members.
(2) Nominations.--The members of the Board shall be
processors appointed by the Secretary from nominations submitted
by processors in a manner authorized by the Secretary, subject
to paragraph (3). Not more than 1 member may be appointed to the
Board from nominations submitted by any 1 processor.
(3) Geographical diversity.--In making appointments, the
Secretary shall take into account, to the extent practicable,
the geographical distribution of popcorn production throughout
the United States.
(4) Terms.--The term of appointment of each member of the
Board shall be 3 years, except that the members appointed to the
initial Board shall serve, proportionately, for terms of 2, 3,
and 4 years, as determined by the Secretary.
(5) Compensation and expenses.--A member of the Board shall
serve without compensation, but shall be reimbursed for the
expenses of the member incurred in the performance of duties for
the Board.
(c) Powers and Duties of Board.--The order shall define the powers
and duties of the Board, which shall include the power and duty--
(1) to administer the order in accordance with the terms and
provisions of the order;
(2) to issue regulations to effectuate the terms and
provisions of the order;
(3) to appoint members of the Board to serve on an executive
committee;
[[Page 110 STAT. 1078]]
(4) to propose, receive, evaluate, and approve budgets,
plans, and projects of promotion, research, consumer
information, and industry information, and to contract with
appropriate persons to implement the plans or projects;
(5) to accept and receive voluntary contributions, gifts,
and market promotion or similar funds;
(6) to invest, pending disbursement under a plan or project,
funds collected through assessments authorized under subsection
(f), only in--
(A) obligations of the United States or an agency of
the United States;
(B) general obligations of a State or a political
subdivision of a State;
(C) an interest-bearing account or certificate of
deposit of a bank that is a member of the Federal
Reserve System; or
(D) obligations fully guaranteed as to principal and
interest by the United States;
(7) to receive, investigate, and report to the Secretary
complaints of violations of the order; and
(8) to recommend to the Secretary amendments to the order.
(d) Plans and Budgets.--
(1) In general.--The order shall provide that the Board
shall submit to the Secretary for approval any plan or project
of promotion, research, consumer information, or industry
information.
(2) Budgets.--The order shall require the Board to submit to
the Secretary for approval budgets on a fiscal year basis of the
anticipated expenses and disbursements of the Board in the
implementation of the order, including projected costs of plans
and projects of promotion, research, consumer information, and
industry information.
(e) Contracts and Agreements.--
(1) In general.--The order shall provide that the Board may
enter into contracts or agreements for the implementation and
carrying out of plans or projects of promotion, research,
consumer information, or industry information, including
contracts with a processor organization, and for the payment of
the cost of the plans or projects with funds collected by the
Board under the order.
(2) Requirements.--A contract or agreement under paragraph
(1) shall provide that--
(A) the contracting party shall develop and submit
to the Board a plan or project, together with a budget
that shows the estimated costs to be incurred for the
plan or project;
(B) <<NOTE: Effective date.>> the plan or project
shall become effective on the approval of the Secretary;
and
(C) <<NOTE: Records. Reports.>> the contracting
party shall keep accurate records of each transaction of
the party, account for funds received and expended, make
periodic reports to the Board of activities conducted,
and make such other reports as the Board or the
Secretary may require.
(3) Processor organizations.--The order shall provide that
the Board may contract with processor organizations for any
services required in addition to the services described in
[[Page 110 STAT. 1079]]
paragraph (1). The contract shall include provisions comparable
to the provisions required by paragraph (2).
(f) Assessments.--
(1) Processors.--The order shall provide that each processor
marketing popcorn in the United States or for export shall, in
the manner prescribed in the order, pay assessments and remit
the assessments to the Board.
(2) Direct marketers.--A processor that markets popcorn
produced by the processor directly to consumers shall pay and
remit the assessments on the popcorn directly to the Board in
the manner prescribed in the order.
(3) Rate.--
(A) In general.--The rate of assessment prescribed
in the order shall be a rate established by the Board
but not more than $.08 per hundredweight of popcorn.
(B) Adjustment of rate.--The order shall provide
that the Board, with the approval of the Secretary, may
raise or lower the rate of assessment annually up to a
maximum of $.08 per hundredweight of popcorn.
(4) Use of assessments.--
(A) In general.--Subject to subparagraphs (B) and
(C) and subsection (c)(5), the order shall provide that
the assessments collected shall be used by the Board--
(i) to pay expenses incurred in implementing
and administering the order, with provision for a
reasonable reserve; and
(ii) to cover such administrative costs as are
incurred by the Secretary, except that the
administrative costs incurred by the Secretary
(other than any legal expenses incurred to defend
and enforce the order) that may be reimbursed by
the Board may not exceed 15 percent of the
projected annual revenues of the Board.
(B) Expenditures based on source of assessments.--In
implementing plans and projects of promotion, research,
consumer information, and industry information, the
Board shall expend funds on--
(i) plans and projects for popcorn marketed in
the United States or Canada in proportion to the
amount of assessments collected on domestically
marketed popcorn; and
(ii) plans and projects for exported popcorn
in proportion to the amount of assessments
collected on exported popcorn.
(C) Notification.--If the administrative costs
incurred by the Secretary that are reimbursed by the
Board exceed 10 percent of the projected annual revenues
of the Board, the Secretary shall notify as soon as
practicable the Committee on Agriculture of the House of
Representatives and the Committee on Agriculture,
Nutrition, and Forestry of the Senate.
(g) Prohibition on Use of Funds.--The order shall prohibit any funds
collected by the Board under the order from being used to influence
government action or policy, other than the use of funds by the Board
for the development and recommendation to the Secretary of amendments to
the order.
[[Page 110 STAT. 1080]]
(h) Books and Records of the Board.--The order shall require the
Board to--
(1) maintain such books and records (which shall be
available to the Secretary for inspection and audit) as the
Secretary may prescribe;
(2) <<NOTE: Reports.>> prepare and submit to the Secretary,
from time to time, such reports as the Secretary may prescribe;
and
(3) account for the receipt and disbursement of all funds
entrusted to the Board.
(i) Books and Records of Processors.--
(1) Maintenance and reporting of information.--The order
shall require that each processor of popcorn for the market
shall--
(A) maintain, and make available for inspection,
such books and records as are required by the order; and
(B) <<NOTE: Reports.>> file reports at such time,
in such manner, and having such content as is prescribed
in the order.
(2) Use of information.--The Secretary shall authorize the
use of information regarding processors that may be accumulated
under a law or regulation other than this subtitle or a
regulation issued under this subtitle. The information shall be
made available to the Secretary as appropriate for the
administration or enforcement of this subtitle, the order, or
any regulation issued under this subtitle.
(3) Confidentiality.--
(A) In general.--Subject to subparagraphs (B), (C),
and (D), all information obtained by the Secretary under
paragraphs (1) and (2) shall be kept confidential by all
officers, employees, and agents of the Board and the
Department.
(B) Disclosure by secretary.--Information referred
to in subparagraph (A) may be disclosed if--
(i) the Secretary considers the information
relevant;
(ii) the information is revealed in a suit or
administrative hearing brought at the request of
the Secretary, or to which the Secretary or any
officer of the United States is a party; and
(iii) the information relates to the order.
(C) Disclosure to other agency of federal
government.--
(i) In general.--No information obtained under
the authority of this subtitle may be made
available to another agency or officer of the
Federal Government for any purpose other than the
implementation of this subtitle and any
investigatory or enforcement activity necessary
for the implementation of this subtitle.
(ii) Penalty.--A person who knowingly violates
this subparagraph shall, on conviction, be subject
to a fine of not more than $1,000 or to
imprisonment for not more than 1 year, or both,
and if an officer, employee, or agent of the Board
or the Department, shall be removed from office or
terminated from employment, as applicable.
(D) General statements.--Nothing in this paragraph
prohibits--
[[Page 110 STAT. 1081]]
(i) the issuance of general statements based
on the reports of a number of persons subject to
an order or statistical data collected from the
reports, if the statements do not identify the
information provided by any person; or
(ii) the publication, by direction of the
Secretary, of the name of a person violating the
order, together with a statement of the particular
provisions of the order violated by the person.
(j) Other Terms and Conditions.--The order shall contain such other
terms and conditions, consistent with this subtitle, as are necessary to
effectuate this subtitle, including regulations relating to the
assessment of late payment charges.
SEC. 576. <<NOTE: 7 USC 7485.>> REFERENDA.
(a) Initial Referendum.--
(1) In general.--Within the 60-day period immediately
preceding the effective date of an order, as provided in section
574(b)(3), the Secretary shall conduct a referendum among
processors who, during a representative period as determined by
the Secretary, have been engaged in processing, for the purpose
of ascertaining whether the order shall go into effect.
(2) Approval of order.--The order shall become effective, as
provided in section 574(b), only if the Secretary determines
that the order has been approved by not less than a majority of
the processors voting in the referendum and if the majority
processed more than 50 percent of the popcorn certified as
having been processed, during the representative period, by the
processors voting.
(b) Additional Referenda.--
(1) In general.--Not earlier than 3 years after the
effective date of an order approved under subsection (a), on the
request of the Board or a representative group of processors, as
described in paragraph (2), the Secretary may conduct additional
referenda to determine whether processors favor the suspension
or termination of the order.
(2) Representative group of processors.--An additional
referendum on an order shall be conducted if the referendum is
requested by 30 percent or more of the number of processors who,
during a representative period as determined by the Secretary,
have been engaged in processing.
(3) <<NOTE: Termination date.>> Disapproval of order.--If
the Secretary determines, in a referendum conducted under
paragraph (1), that suspension or termination of the order is
favored by at least \2/3\ of the processors voting in the
referendum, the Secretary shall--
(A) suspend or terminate, as appropriate, collection
of assessments under the order not later than 180 days
after the date of determination; and
(B) suspend or terminate the order, as appropriate,
in an orderly manner as soon as practicable after the
date of determination.
(c) Costs of Referendum.--The Secretary shall be reimbursed from
assessments collected by the Board for any expenses incurred by the
Secretary in connection with the conduct of any referendum under this
section.
[[Page 110 STAT. 1082]]
(d) Method of Conducting Referendum.--Subject to this section, a
referendum conducted under this section shall be conducted in such
manner as is determined by the Secretary.
(e) Confidentiality of Ballots and Other Information.--
(1) In general.--The ballots and other information or
reports that reveal or tend to reveal the vote of any processor,
or any business operation of a processor, shall be considered to
be strictly confidential and shall not be disclosed.
(2) Penalty for violations.--An officer or employee of the
Department who knowingly violates paragraph (1) shall be subject
to the penalties described in section 575(i)(3)(C)(ii).
SEC. 577. <<NOTE: 7 USC 7486.>> PETITION AND REVIEW.
(a) Petition.--
(1) In general.--A person subject to an order may file with
the Secretary a petition--
(A) stating that the order, a provision of the
order, or an obligation imposed in connection with the
order is not established in accordance with law; and
(B) requesting a modification of the order or
obligation or an exemption from the order or obligation.
(2) Statute of limitations.--A petition under paragraph (1)
concerning an obligation may be filed not later than 2 years
after the date of imposition of the obligation.
(3) Hearings.--The petitioner shall be given the opportunity
for a hearing on a petition filed under paragraph (1), in
accordance with regulations issued by the Secretary.
(4) Ruling.--After a hearing under paragraph (3), the
Secretary shall issue a ruling on the petition that is the
subject of the hearing, which shall be final if the ruling is in
accordance with applicable law.
(b) <<NOTE: Courts.>> Review.--
(1) Commencement of action.--The district court of the
United States for any district in which a person who is a
petitioner under subsection (a) resides or carries on business
shall have jurisdiction to review a ruling on the petition, if
the person files a complaint not later than 20 days after the
date of issuance of the ruling under subsection (a)(4).
(2) Process.--Service of process in a proceeding under
paragraph (1) may be made on the Secretary by delivering a copy
of the complaint to the Secretary.
(3) Remands.--If the court determines, under paragraph (1),
that a ruling issued under subsection (a)(4) is not in
accordance with applicable law, the court shall remand the
matter to the Secretary with directions--
(A) to make such ruling as the court shall determine
to be in accordance with law; or
(B) to take such further proceedings as, in the
opinion of the court, the law requires.
(c) Enforcement.--The pendency of proceedings instituted under
subsection (a) may not impede, hinder, or delay the Secretary or the
Attorney General from taking action under section 578.
SEC. 578. <<NOTE: 7 USC 7487.>> ENFORCEMENT.
(a) In General.--The Secretary may issue an enforcement order to
restrain or prevent any person from violating an order or regulation
issued under this subtitle and may assess a civil penalty of not more
than $1,000 for each violation of the enforce
[[Page 110 STAT. 1083]]
ment order, after an opportunity for an administrative hearing, if the
Secretary determines that the administration and enforcement of the
order and this subtitle would be adequately served by such a procedure.
(b) <<NOTE: Courts.>> Jurisdiction.--The district courts of the
United States are vested with jurisdiction specifically to enforce, and
to prevent and restrain any person from violating, an order or
regulation issued under this subtitle.
(c) Referral to Attorney General.--A civil action authorized to be
brought under this section shall be referred to the Attorney General for
appropriate action.
SEC. 579. <<NOTE: 7 USC 7488.>> INVESTIGATIONS AND POWER TO SUBPOENA.
(a) Investigations.--The Secretary may make such investigations as
the Secretary considers necessary--
(1) for the effective administration of this subtitle; and
(2) to determine whether any person subject to this subtitle
has engaged, or is about to engage, in an act that constitutes
or will constitute a violation of this subtitle or of an order
or regulation issued under this subtitle.
(b) Oaths, Affirmations, and Subpoenas.--For the purpose of an
investigation under subsection (a), the Secretary may administer oaths
and affirmations, subpoena witnesses, compel the attendance of
witnesses, take evidence, and require the production of any records that
are relevant to the inquiry. The attendance of witnesses and the
production of records may be required from any place in the United
States.
(c) Aid of Courts.--
(1) Request.--In the case of contumacy by, or refusal to
obey a subpoena issued to, any person, the Secretary may request
the aid of any court of the United States within the
jurisdiction of which the investigation or proceeding is carried
on, or where the person resides or carries on business, in
requiring the attendance and testimony of the person and the
production of records.
(2) Enforcement order of the court.--The court may issue an
enforcement order requiring the person to appear before the
Secretary to produce records or to give testimony concerning the
matter under investigation.
(3) Contempt.--A failure to obey an enforcement order of the
court under paragraph (2) may be punished by the court as a
contempt of the court.
(4) Process.--Process in a case under this subsection may be
served in the judicial district in which the person resides or
carries on business or wherever the person may be found.
SEC. 580. <<NOTE: 7 USC 7489.>> RELATION TO OTHER PROGRAMS.
Nothing in this subtitle preempts or supersedes any other program
relating to popcorn promotion organized and operated under the laws of
the United States or any State.
SEC. 581. <<NOTE: 7 USC 7490.>> REGULATIONS.
The Secretary may issue such regulations as are necessary to carry
out this subtitle.
SEC. 582. <<NOTE: 7 USC 7491.>> AUTHORIZATION OF APPROPRIATIONS.
There are authorized to be appropriated such sums as are necessary
to carry out this subtitle. Amounts made available under
[[Page 110 STAT. 1084]]
this section or otherwise made available to the Department, and amounts
made available under any other marketing or promotion order, may not be
used to pay any administrative expense of the Board.
Subtitle F--Miscellaneous
SEC. 591. MAINTENANCE OF RECORDS FOR HONEY PROMOTION PROGRAM.
Section 9(f) of the Honey Research, Promotion, and Consumer
Information Act (7 U.S.C. 4608(f)) is amended by inserting
``producers,'' after ``importers,''.
TITLE VI--CREDIT
Subtitle A--Farm Ownership Loans
SEC. 601. LIMITATION ON DIRECT FARM OWNERSHIP LOANS.
Section 302 of the Consolidated Farm and Rural Development Act (7
U.S.C. 1922) is amended by striking subsection (b) and inserting the
following:
``(b) Direct Loans.--
``(1) In general.--Subject to paragraph (3), the Secretary
may make a direct loan under this subtitle only to a farmer or
rancher who has operated a farm or ranch for not less than 3
years and--
``(A) is a qualified beginning farmer or rancher;
``(B) has not received a previous direct farm
ownership loan made under this subtitle; or
``(C) has not received a direct farm ownership loan
under this subtitle more than 10 years before the date
the new loan would be made.
``(2) Youth loans.--The operation of an enterprise by a
youth under section 311(b) shall not be considered the operation
of a farm or ranch for purposes of paragraph (1).
``(3) Transition rule.--
``(A) In general.--Subject to subparagraphs (B) and
(C), the Secretary may make a direct loan under this
subtitle to a farmer or rancher who has a direct loan
outstanding under this subtitle on the date of enactment
of this paragraph.
``(B) Less than 5 years.--If, as of the date of
enactment of this paragraph, a farmer or rancher has had
a direct loan outstanding under this subtitle for less
than 5 years, the Secretary shall not make a loan to the
farmer or rancher under subparagraph (A) after the date
that is 10 years after the date of enactment of this
paragraph.
``(C) 5 years or more.--If, as of the date of
enactment of this paragraph, a farmer or rancher has had
a direct loan outstanding under this subtitle for 5
years or more, the Secretary shall not make a loan to
the farmer or rancher under subparagraph (A) after the
date that is 5 years after the date of enactment of this
paragraph.''.
[[Page 110 STAT. 1085]]
SEC. 602. PURPOSES OF LOANS.
(a) In General.--Section 303 of the Consolidated Farm and Rural
Development Act (7 U.S.C. 1923) is amended to read as follows:
``SEC. 303. PURPOSES OF LOANS.
``(a) Allowed Purposes.--
``(1) Direct loans.--A farmer or rancher may use a direct
loan made under this subtitle only for--
``(A) acquiring or enlarging a farm or ranch;
``(B) making capital improvements to a farm or
ranch;
``(C) paying loan closing costs related to
acquiring, enlarging, or improving a farm or ranch; or
``(D) paying for activities to promote soil and
water conservation and protection described in section
304 on a farm or ranch.
``(2) Guaranteed loans.--A farmer or rancher may use a loan
guaranteed under this subtitle only for--
``(A) acquiring or enlarging a farm or ranch;
``(B) making capital improvements to a farm or
ranch;
``(C) paying loan closing costs related to
acquiring, enlarging, or improving a farm or ranch;
``(D) paying for activities to promote soil and
water conservation and protection described in section
304 on a farm or ranch; or
``(E) refinancing indebtedness.
``(b) Preferences.--In making or guaranteeing a loan under this
subtitle for purchase of a farm or ranch, the Secretary shall give
preference to a person who--
``(1) has a dependent family;
``(2) to the extent practicable, is able to make an initial
down payment on the farm or ranch; or
``(3) is an owner of livestock or farm or ranch equipment
that is necessary to successfully carry out farming or ranching
operations.
``(c) Hazard Insurance Requirement.--
``(1) In general.--After the Secretary makes the
determination required by paragraph (2), the Secretary may not
make a loan to a farmer or rancher under this subtitle unless
the farmer or rancher has, or agrees to obtain, hazard insurance
on any real property to be acquired or improved with the loan.
``(2) Determination.--Not later than 180 days after the date
of enactment of this subsection, the Secretary shall determine
the appropriate level of insurance to be required under
paragraph (1).''.
(b) <<NOTE: 7 USC 1923 note.>> Transitional Provision.--Section
303(c)(1) of the Consolidated Farm and Rural Development Act shall not
apply until the Secretary of Agriculture makes the determination
required by section 303(c)(2) of the Act.
SEC. 603. SOIL AND WATER CONSERVATION AND PROTECTION.
Section 304 of the Consolidated Farm and Rural Development Act (7
U.S.C. 1924) is amended--
(1) by striking subsections (b) and (c);
(2) by striking ``Sec. 304. (a)(1) Loans'' and inserting the
following:
[[Page 110 STAT. 1086]]
``SEC. 304. SOIL AND WATER CONSERVATION AND PROTECTION.
``(a) In General.--Loans'';
(3) by striking ``(2) In making or insuring'' and inserting
the following:
``(b) Priority.--In making or guaranteeing'';
(4) by striking ``(3) The Secretary'' and inserting the
following:
``(c) Loan Maximum.--The Secretary'';
(5) by redesignating subparagraphs (A) through (F) of
subsection (a) (as amended by paragraph (2)) as paragraphs (1)
through (6), respectively; and
(6) by redesignating subparagraphs (A) and (B) of subsection
(c) (as amended by paragraph (4)) as paragraphs (1) and (2),
respectively.
SEC. 604. INTEREST RATE REQUIREMENTS.
Section 307(a)(3) of the Consolidated Farm and Rural Development Act
(7 U.S.C. 1927(a)(3)) is amended--
(1) in subparagraph (B), by inserting ``subparagraph (D) and
in'' after ``Except as provided in''; and
(2) by adding at the end the following:
``(D) Joint financing arrangement.--If a direct farm
ownership loan is made under this subtitle as part of a
joint financing arrangement and the amount of the direct
farm ownership loan does not exceed 50 percent of the
total principal amount financed under the arrangement,
the interest rate on the direct farm ownership loan
shall be at least 4 percent annually.''.
SEC. 605. INSURANCE OF LOANS.
Section 308 of the Consolidated Farm and Rural Development Act (7
U.S.C. 1928) is amended to read as follows:
``SEC. 308. FULL FAITH AND CREDIT.
``(a) In General.--A contract of insurance or guarantee executed by
the Secretary under this title shall be an obligation supported by the
full faith and credit of the United States.
``(b) Contestability.--A contract of insurance or guarantee executed
by the Secretary under this title shall be incontestable except for
fraud or misrepresentation that the lender or any holder--
``(1) has actual knowledge of at the time the contract or
guarantee is executed; or
``(2) participates in or condones.''.
SEC. 606. LOANS GUARANTEED.
Section 309(h) of the Consolidated Farm and Rural Development Act (7
U.S.C. 1929(h)) is amended by adding at the end the following:
``(4) Maximum guarantee of 90 percent.--Except as provided
in paragraphs (5) and (6), a loan guarantee under this title
shall be for not more than 90 percent of the principal and
interest due on the loan.
``(5) Refinanced loans guaranteed at 95 percent.--The
Secretary shall guarantee 95 percent of--
``(A) in the case of a loan that solely refinances a
direct loan made under this title, the principal and
interest due on the loan on the date of the refinancing;
or
[[Page 110 STAT. 1087]]
``(B) in the case of a loan that is used for
multiple purposes, the portion of the loan that
refinances the principal and interest due on a direct
loan made under this title that is outstanding on the
date the loan is guaranteed.
``(6) Beginning farmer loans guaranteed up to 95 percent.--
The Secretary may guarantee not more than 95 percent of--
``(A) a farm ownership loan for acquiring a farm or
ranch to a borrower who is participating in the down
payment loan program under section 310E; or
``(B) an operating loan to a borrower who is
participating in the down payment loan program under
section 310E that is made during the period that the
borrower has a direct loan outstanding under this
subtitle for acquiring a farm or ranch.''.
Subtitle B--Operating Loans
SEC. 611. LIMITATION ON DIRECT OPERATING LOANS.
(a) In General.--Section 311 of the Consolidated Farm and Rural
Development Act (7 U.S.C. 1941) is amended by striking subsection (c)
and inserting the following:
``(c) Direct Loans.--
``(1) In general.--Subject to paragraph (3), the Secretary
may make a direct loan under this subtitle only to a farmer or
rancher who--
``(A) is a qualified beginning farmer or rancher who
has not operated a farm or ranch, or who has operated a
farm or ranch for not more than 5 years;
``(B) has not received a previous direct operating
loan made under this subtitle; or
``(C) has received a previous direct operating loan
made under this subtitle during 6 or fewer years.
``(2) Youth loans.--In this subsection, the term `direct
operating loan' shall not include a loan made to a youth under
subsection (b).
``(3) Transition rule.--If, as of the date of enactment of
this paragraph, a farmer or rancher has received a direct
operating loan under this subtitle during each of 4 or more
previous years, the borrower shall be eligible to receive a
direct operating loan under this subtitle during 3 additional
years after the date of enactment of this paragraph.''.
(b) Youth Enterprises Not Farming or Ranching.--Section 311(b) of
the Consolidated Farm and Rural Development Act (7 U.S.C. 1941(b)) is
amended by adding at the end the following:
``(4) Youth enterprises not farming or ranching.--The
operation of an enterprise by a youth under this subsection
shall not be considered the operation of a farm or ranch under
this title.''.
SEC. 612. PURPOSES OF OPERATING LOANS.
(a) In General.--Section 312 of the Consolidated Farm and Rural
Development Act (7 U.S.C. 1942) is amended to read as follows:
[[Page 110 STAT. 1088]]
``SEC. 312. PURPOSES OF LOANS.
``(a) In General.--A direct loan may be made under this subtitle
only for--
``(1) paying the costs incident to reorganizing a farm or
ranch for more profitable operation;
``(2) purchasing livestock, poultry, or farm or ranch
equipment;
``(3) purchasing feed, seed, fertilizer, insecticide, or
farm or ranch supplies, or to meet other essential farm or ranch
operating expenses, including cash rent;
``(4) financing land or water development, use, or
conservation;
``(5) paying loan closing costs;
``(6) assisting a farmer or rancher in changing the
equipment, facilities, or methods of operation of a farm or
ranch to comply with a standard promulgated under section 6 of
the Occupational Safety and Health Act of 1970 (29 U.S.C. 655)
or a standard adopted by a State under a plan approved under
section 18 of the Act (29 U.S.C. 667), if the Secretary
determines that without assistance under this paragraph the
farmer or rancher is likely to suffer substantial economic
injury in complying with the standard;
``(7) training a limited-resource borrower receiving a loan
under section 310D in maintaining records of farming and
ranching operations;
``(8) training a borrower under section 359;
``(9) refinancing the indebtedness of a borrower, if the
borrower--
``(A) has refinanced a loan under this subtitle not
more than 4 times previously; and
``(B)(i) is a direct loan borrower under this title
at the time of the refinancing and has suffered a
qualifying loss because of a natural disaster declared
by the Secretary under this title or a major disaster or
emergency designated by the President under the Robert
T. Stafford Disaster Relief and Emergency Assistance Act
(42 U.S.C. 5121 et seq.); or
``(ii) is refinancing a debt obtained from a
creditor other than the Secretary; or
``(10) providing other farm, ranch, or home needs, including
family subsistence.
``(b) Guaranteed Loans.--A loan may be guaranteed under this
subtitle only for--
``(1) paying the costs incident to reorganizing a farm or
ranch for more profitable operation;
``(2) purchasing livestock, poultry, or farm or ranch
equipment;
``(3) purchasing feed, seed, fertilizer, insecticide, or
farm or ranch supplies, or to meet other essential farm or ranch
operating expenses, including cash rent;
``(4) financing land or water development, use, or
conservation;
``(5) refinancing indebtedness;
``(6) paying loan closing costs;
``(7) assisting a farmer or rancher in changing the
equipment, facilities, or methods of operation of a farm or
ranch to comply with a standard promulgated under section 6 of
[[Page 110 STAT. 1089]]
the Occupational Safety and Health Act of 1970 (29 U.S.C. 655)
or a standard adopted by a State under a plan approved under
section 18 of the Act (29 U.S.C. 667), if the Secretary
determines that without assistance under this paragraph the
farmer or rancher is likely to suffer substantial economic
injury due to compliance with the standard;
``(8) training a borrower under section 359; or
``(9) providing other farm, ranch, or home needs, including
family subsistence.
``(c) Hazard Insurance Requirement.--
``(1) In general.--After the Secretary makes the
determination required by paragraph (2), the Secretary may not
make a loan to a farmer or rancher under this subtitle unless
the farmer or rancher has, or agrees to obtain, hazard insurance
on the property to be acquired with the loan.
``(2) Determination.--Not later than 180 days after the date
of enactment of this paragraph, the Secretary shall determine
the appropriate level of insurance to be required by paragraph
(1).
``(d) Private Reserve.--
``(1) In general.--Notwithstanding any other provision of
this title, the Secretary may reserve a portion of any loan made
under this subtitle to be placed in an unsupervised bank account
that may be used at the discretion of the borrower for the basic
family needs of the borrower and the immediate family of the
borrower.
``(2) Limit on size of the reserve.--The size of the reserve
shall not exceed the least of--
``(A) 10 percent of the loan;
``(B) $5,000; or
``(C) the amount needed to provide for the basic
family needs of the borrower and the borrower's
immediate family for 3 calendar months.''.
(b) <<NOTE: 7 USC 1942 note.>> Transitional Provision.--Section
312(c)(1) of the Consolidated Farm and Rural Development Act shall not
apply until the Secretary of Agriculture makes the determination
required by section 312(c)(2) of the Act.
SEC. 613. PARTICIPATION IN LOANS.
Section 315 of the Consolidated Farm and Rural Development Act (7
U.S.C. 1945) is repealed.
SEC. 614. LINE-OF-CREDIT LOANS.
Section 316 of the Consolidated Farm and Rural Development Act (7
U.S.C. 1946) is amended by adding at the end the following:
``(c) Line-of-Credit Loans.--
``(1) In general.--A loan made or guaranteed by the
Secretary under this subtitle may be in the form of a line-of-
credit loan.
``(2) Term.--A line-of-credit loan under paragraph (1) shall
terminate not later than 5 years after the date that the loan is
made or guaranteed.
``(3) Eligibility.--For purposes of determining eligibility
for a farm operating loan under this subtitle, each year during
which a farmer or rancher takes an advance or draws on a line-
of-credit loan the farmer or rancher shall be considered to have
received an operating loan for 1 year.
[[Page 110 STAT. 1090]]
``(4) Termination of delinquent loans.--If a borrower does
not pay an installment on a line-of-credit loan on schedule, the
borrower may not take an advance or draw on the line-of-credit,
unless the Secretary determines that--
``(A) the borrower's failure to pay on schedule was
due to unusual conditions that the borrower could not
control; and
``(B) the borrower will reduce the line-of-credit
balance to the scheduled level at the end of--
``(i) the production cycle; or
``(ii) the marketing of the borrower's
agricultural products.
``(5) Agricultural commodities.--A line-of-credit loan may
be used to finance the production or marketing of an
agricultural commodity that--
``(A) is eligible for a price support program of the
Department of Agriculture; or
``(B) was eligible for a price support program of
the Department of Agriculture on the day before the date
of enactment of the Federal Agriculture Improvement and
Reform Act of 1996.''.
SEC. 615. INSURANCE OF OPERATING LOANS.
Section 317 of the Consolidated Farm and Rural Development Act (7
U.S.C. 1947) is repealed.
SEC. 616. SPECIAL ASSISTANCE FOR BEGINNING FARMERS AND RANCHERS.
(a) In General.--Section 318 of the Consolidated Farm and Rural
Development Act (7 U.S.C. 1948) is repealed.
(b) Conforming Amendment.--Section 310F of the Consolidated Farm and
Rural Development Act (7 U.S.C. 1936) is repealed.
SEC. 617. LIMITATION ON PERIOD FOR WHICH BORROWERS ARE ELIGIBLE FOR
GUARANTEED ASSISTANCE.
Section 319 of the Consolidated Farm and Rural Development Act (7
U.S.C. 1949) is amended by striking subsection (b) and inserting the
following:
``(b) Limitation on Period Borrowers Are Eligible for Guaranteed
Assistance.--
``(1) General rule.--Subject to paragraph (2), the Secretary
shall not guarantee a loan under this subtitle for a borrower
for any year after the 15th year that a loan is made to, or a
guarantee is provided with respect to, the borrower under this
subtitle.
``(2) Transition rule.--If, as of October 28, 1992, a farmer
or rancher has received a direct or guaranteed operating loan
under this subtitle during each of 10 or more previous years,
the borrower shall be eligible to receive a guaranteed operating
loan under this subtitle during 5 additional years after October
28, 1992.''.
[[Page 110 STAT. 1091]]
Subtitle C--Emergency Loans
SEC. 621. HAZARD INSURANCE REQUIREMENT.
(a) In General.--Section 321 of the Consolidated Farm and Rural
Development Act (7 U.S.C. 1961) is amended by striking subsection (b)
and inserting the following:
``(b) Hazard Insurance Requirement.--
``(1) In general.--After the Secretary makes the
determination required by paragraph (2), the Secretary may not
make a loan to a farmer or rancher under this subtitle to cover
a property loss unless the farmer or rancher had hazard
insurance that insured the property at the time of the loss.
``(2) Determination.--Not later than 180 days after the date
of enactment of this paragraph, the Secretary shall determine
the appropriate level of insurance to be required under
paragraph (1).''.
(b) <<NOTE: 7 USC 1961 note.>> Transitional Provision.--Section
321(b)(1) of the Consolidated Farm and Rural Development Act shall not
apply until the Secretary of Agriculture makes the determination
required by section 321(b)(2) of the Act.
SEC. 622. NARROWING OF AUTHORITY TO WAIVE APPLICATION OF THE CREDIT
ELSEWHERE TEST.
The second proviso of section 322(b) of the Consolidated Farm and
Rural Development Act (7 U.S.C. 1962(b)) is amended by striking
``$300,000 or less'' and inserting ``$100,000 or less''.
SEC. 623. LINKING OF EMERGENCY LOANS FOR CROP OR LIVESTOCK CHANGES TO
NATURAL DISASTERS.
Section 323 of the Consolidated Farm and Rural Development Act (7
U.S.C. 1963) is amended by inserting ``that are necessitated by a
natural disaster, major disaster, or emergency and that are'' after
``livestock changes''.
SEC. 624. MAXIMUM EMERGENCY LOAN INDEBTEDNESS.
Section 324 of the Consolidated Farm and Rural Development Act (7
U.S.C. 1964) is amended by striking ``Sec. 324. (a) No loan'' and all
that follows through the end of subsection (a) and inserting the
following:
``SEC. 324. TERMS OF LOANS.
``(a) Maximum Amount of Loan.--The Secretary may not make a loan
under this subtitle to a borrower who has suffered a loss in an amount
that--
``(1) exceeds the actual loss caused by a disaster; or
``(2) would cause the total indebtedness of the borrower
under this subtitle to exceed $500,000.''.
SEC. 625. ESTABLISHMENT OF DATE FOR EMERGENCY LOAN ASSET VALUATION.
The last sentence of section 324(d) of the Consolidated Farm and
Rural Development Act (7 U.S.C. 1964(d)) is amended by striking ``value
the assets'' and all that follows through the period and inserting
``establish the value of the assets as of the day before the occurrence
of the natural disaster, major disaster, or emergency that is the basis
for a request for assistance under
[[Page 110 STAT. 1092]]
this subtitle or the Robert T. Stafford Disaster Relief and Emergency
Assistance Act (42 U.S.C. 5121 et seq.).''.
SEC. 626. INSURANCE OF EMERGENCY LOANS.
Section 328 of the Consolidated Farm and Rural Development Act (7
U.S.C. 1968) is repealed.
Subtitle D--Administrative Provisions
SEC. 631. TEMPORARY AUTHORITY TO ENTER INTO CONTRACTS.
Section 331 of the Consolidated Farm and Rural Development Act (7
U.S.C. 1981) is amended by adding at the end the following:
``(d) Temporary Authority To Enter Into Contracts.--
``(1) Definitions.--In this subsection:
``(A) Eligible financial institution.--The term
`eligible financial institution' means a financial
institution with substantial experience in farm, ranch,
or aquaculture lending that is regulated by the
Comptroller of the Currency, the Farm Credit
Administration, or a similar regulatory body.
``(B) Pilot project.--The term `pilot project'
includes services related to borrower loan
documentation, financial information, credit history,
and appraisals of real estate and chattel.
``(2) Authority.--The Secretary may enter into a contract
with an eligible financial institution for servicing a farmer
program loan under this title, including 1 or more pilot
projects.
``(3) Report.--Not later than September 30, 1997, and
September 30 of each year thereafter, the Secretary shall report
to Congress on--
``(A) the Secretary's experience in using contracts
under paragraph (2); and
``(B) recommendations for legislation related to
this subsection, if any.
``(4) Savings clause.--Nothing in this subsection shall
limit the authority of the Secretary or an eligible financial
institution to contract for any services under this Act or any
other law.
``(5) Sunset provision.--This subsection shall be effective
until September 30, 2002.''.
SEC. 632. USE OF COLLECTION AGENCIES.
Section 331 of the Consolidated Farm and Rural Development Act (7
U.S.C. 1981) (as amended by section 631) is amended by adding at the end
the following:
``(e) Private Collection Agency.--The Secretary may use a private
collection agency to collect a claim or obligation described in
subsection (b)(5).''.
SEC. 633. NOTICE OF LOAN SERVICE PROGRAMS.
Section 331D(a) of the Consolidated Farm and Rural Development Act
(7 U.S.C. 1981d(a)) is amended by striking ``180 days delinquent in''
and inserting ``90 days past due on''.
[[Page 110 STAT. 1093]]
SEC. 634. CLARIFICATION OF WRITTEN STATEMENT REQUIRED OF BORROWERS.
Section 333(1)(B) of the Consolidated Farm and Rural Development Act
(7 U.S.C. 1983(1)(B)) is amended by striking ``a written statement
showing the applicant's net worth'' and inserting ``an appropriate
written financial statement''.
SEC. 635. ANNUAL REVIEW OF THE CREDIT HISTORY, BUSINESS OPERATION, AND
CONTINUED ELIGIBILITY OF A BORROWER.
(a) In General.--Section 333 of the Consolidated Farm and Rural
Development Act (7 U.S.C. 1983) is amended--
(1) by redesignating paragraphs (2), (3), and (4) as
paragraphs (3), (4), and (5), respectively; and
(2) by inserting after paragraph (1) the following:
``(2) except with respect to a loan under section 306, 310B,
or 314, the county or area committee established under section
8(b)(5)(B) of the Soil Conservation and Domestic Allotment Act
(16 U.S.C. 590h(b)(5)(B)) to certify in writing--
``(A) that an annual review of the credit history
and business operation of the borrower has been
conducted; and
``(B) that a review of the continued eligibility of
the borrower for the loan has been conducted;''.
(b) Conforming Amendment.--The third sentence of section 310B(a) of
the Consolidated Farm and Rural Development Act (7 U.S.C. 1932(a)) is
amended by striking ``(3) of'' and inserting ``(4) of''.
SEC. 636. EXTENSION OF VETERANS PREFERENCE.
Section 333 of the Consolidated Farm and Rural Development Act (7
U.S.C. 1983) (as amended by section 635(a)) is amended by striking
paragraph (5) and inserting the following:
``(5) the application of a person who is a veteran of any
war, as defined in section 101(12) of title 38, United States
Code, for a loan under subtitle A or B to be given preference
over a similar application from a person who is not a veteran of
any war, if the applications are on file in a county or area
office at the same time.''.
SEC. 637. VERIFICATION OF THE CREDIT ELSEWHERE TEST.
Section 333A(f)(4) of the Consolidated Farm and Rural Development
Act (7 U.S.C. 1983a(f)(4)) is amended--
(1) by striking ``(4) With'' and all that follows through
``seasoned'' and inserting the following:
``(4) Verification.--
``(A) In general.--The Secretary shall provide a
prospectus of a seasoned''; and
(2) by striking ``If the Secretary'' and inserting the
following:
``(B) Notification.--The Secretary shall notify each
borrower of a loan that a prospectus has been provided
to a lender under subparagraph (A).
``(C) Credit extended.--If the Secretary''.
SEC. 638. SALE OF PROPERTY.
Section 335 of the Consolidated Farm and Rural Development Act (7
U.S.C. 1985) is amended--
[[Page 110 STAT. 1094]]
(1) in subsection (b), by striking ``subsection (e)'' and
inserting ``subsections (c) and (e)'';
(2) by striking subsection (c) and inserting the following:
``(c) Sale of Property.--
``(1) In general.--Subject to this subsection and subsection
(e)(1)(A), the Secretary shall offer to sell real property that
is acquired by the Secretary under this title using the
following order and method of sale:
``(A) Advertisement.--Not later than 15 days after
acquiring real property, the Secretary shall publicly
advertise the property for sale.
``(B) Beginning farmer or rancher.--
``(i) In general.--Not later than 75 days
after acquiring real property, the Secretary shall
offer to sell the property to a qualified
beginning farmer or rancher at current market
value based on a current appraisal.
``(ii) Random selection.--If more than 1
qualified beginning farmer or rancher offers to
purchase the property, the Secretary shall select
between the qualified applicants on a random
basis.
``(iii) Appeal of random selection.--A random
selection or denial by the Secretary of a
beginning farmer or rancher for farm inventory
property under this subparagraph shall be final
and not administratively appealable.
``(C) Public sale.--If no acceptable offer is
received from a qualified beginning farmer or rancher
under subparagraph (B) not later than 75 days after
acquiring the real property, the Secretary shall, not
later than 30 days after the 75-day period, sell the
property after public notice at a public sale, and, if
no acceptable bid is received, by negotiated sale, at
the best price obtainable.
``(2) Transitional rules.--
``(A) Previous lease.--In the case of real property
acquired prior to the date of enactment of this
subparagraph that the Secretary leased prior to the date
of enactment of this subparagraph, not later than 60
days after the lease expires, the Secretary shall offer
to sell the property in accordance with paragraph (1).
``(B) Previously in inventory.--In the case of real
property acquired prior to the date of enactment of this
subparagraph that the Secretary has not leased, not
later than 60 days after the date of enactment of this
subparagraph, the Secretary shall offer to sell the
property in accordance with paragraph (1).
``(3) Interest.--
``(A) In general.--Subject to subparagraph (B), any
conveyance of real property under this subsection shall
include all of the interest of the United States in the
property, including mineral rights.
``(B) Conservation.--The Secretary may for
conservation purposes grant or sell an easement,
restriction, development right, or similar legal right
to real property to a State, a political subdivision of
a State, or a private nonprofit organization separately
from the underlying fee or other rights to the property
owned by the United States.
[[Page 110 STAT. 1095]]
``(4) Other law.--The Federal Property and Administrative
Services Act of 1949 (40 U.S.C. 471 et seq.) shall not apply to
any exercise of authority under this title.
``(5) Lease of property.--
``(A) In general.--Subject to subparagraph (B), the
Secretary may not lease any real property acquired under
this title.
``(B) Exception.--
``(i) Beginning farmer or rancher.--The
Secretary may lease or contract to sell to a
beginning farmer or rancher a farm or ranch
acquired by the Secretary under this title if the
beginning farmer or rancher qualifies for a credit
sale or direct farm ownership loan under subtitle
A but credit sale authority for loans or direct
farm ownership loan funds, respectively, are not
available.
``(ii) Term.--The term of a lease or contract
to sell to a beginning farmer or rancher under
clause (i) shall be until the earlier of--
``(I) the date that is 18 months
after the date of the lease or sale; or
``(II) the date that direct farm
ownership loan funds or credit sale
authority for loans becomes available to
the beginning farmer or rancher.
``(iii) Income-producing capability.--In
determining the rental rate on real property
leased under this subparagraph, the Secretary
shall consider the income-producing capability of
the property during the term that the property is
leased.
``(6) Expedited determination.--
``(A) In general.--On the request of an applicant,
not later than 30 days after denial of the applicant's
application, the appropriate State director shall
provide an expedited review and determination of whether
the applicant is a beginning farmer or rancher for the
purpose of acquiring farm inventory property.
``(B) Appeal.--The determination of a State Director
under subparagraph (A) shall be final and not
administratively appealable.
``(C) Effects of determinations.--
``(i) <<NOTE: Records.>> In general.--The
Secretary shall maintain statistical data on the
number and results of determinations made under
subparagraph (A) and the effect of the
determinations on--
``(I) selling farm inventory
property to beginning farmers and
ranchers; and
``(II) disposing of real property in
inventory.
``(ii) Notification.--The Secretary shall
notify the Committee on Agriculture of the House
of Representatives and the Committee on
Agriculture, Nutrition, and Forestry of the Senate
if the Secretary determines that the review
process under subparagraph (A) is adversely
affecting the selling of farm inventory property
to beginning farmers or ranchers or the disposing
of real property in inventory.''; and
(3) in subsection (e)--
(A) in paragraph (1)--
[[Page 110 STAT. 1096]]
(i) by striking subparagraphs (A) through (C);
(ii) by redesignating subparagraphs (D)
through (G) as subparagraphs (A) through (D),
respectively;
(iii) in subparagraph (A) (as redesignated by
clause (ii))--
(I) in clause (i)--
(aa) in the matter preceding
subclause (I), by striking
``(G)'' and inserting ``(D)'';
(bb) by striking subclause
(I) and inserting the following:
``(I) the Secretary acquires property under this title that
is located within an Indian reservation; and'';
(cc) in subclause (II), by
striking ``, and'' at the end
and inserting a semicolon; and
(dd) by striking subclause
(III); and
(II) in clause (iii), by striking
``The Secretary shall'' and all that
follows through ``of subparagraph (A),''
and inserting ``Not later than 90 days
after acquiring the property, the
Secretary shall''; and
(iv) in subparagraph (D) (as redesignated by
clause (ii))--
(I) in clause (i), by striking
``(D)'' in the matter following
subclause (IV) and inserting ``(A)'';
(II) in clause (iii)(I), by striking
``subparagraphs (C)(i), (C)(ii), and
(D)'' and inserting ``subparagraph
(A)''; and
(III) by striking clause (v) and
inserting the following:
``(v) <<NOTE: Native Americans.>> 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;
[[Page 110 STAT. 1097]]
``(bb) the fair market value
of the property; and
``(cc) the requirements of
this subparagraph.
``(III) Assumed loans.--If an Indian
tribe assumes a loan under subclause
(I)--
``(aa) the Secretary shall
not foreclose the loan because
of any default that occurred
prior to the date of the
assumption;
``(bb) the loan shall be for
the lesser of the outstanding
principal and interest of the
loan or the fair market value of
the property; and
``(cc) the loan shall be
treated as though the loan was
made under Public Law 91-229 (25
U.S.C. 488 et seq.).'';
(B) by striking paragraph (3);
(C) in paragraph (4)--
(i) by striking subparagraph (B);
(ii) in subparagraph (A)--
(I) in clause (i), by striking
``(i)''; and
(II) by redesignating clause (ii) as
subparagraph (B); and
(iii) in subparagraph (B) (as redesignated by
clause (ii)(II)), by striking ``clause (i)'' and
inserting ``subparagraph (A)'';
(D) by striking paragraphs (5), (6), and (9); and
(E) by redesignating paragraphs (4), (7), (8), and
(10) as paragraphs (3), (4), (5), and (6), respectively.
SEC. 639. EASEMENTS ON INVENTORIED PROPERTY.
Section 335(g) of the Consolidated Farm and Rural Development Act (7
U.S.C. 1985(g)) is amended--
(1) in paragraph (1)--
(A) by striking ``(g)(1) Subject to paragraphs (2)
through (5)'' and inserting the following:
``(g) Easements on Inventoried Property.--
``(1) In general.--Subject to paragraph (2)''; and
(B) by striking ``, as determined'' and all that
follows through ``3801 et seq.)'';
(2) by striking paragraph (2) and inserting the following:
``(2) Limitation.--The Secretary shall not establish a
wetland conservation easement on an inventoried property that--
``(A) was cropland on the date the property entered
the inventory of the Secretary; or
``(B) was used for farming at any time during the
period beginning on the date 5 years before the property
entered the inventory of the Secretary and ending on the
date the property entered the inventory of the
Secretary.'';
(3) by striking paragraphs (3), (4), (5), and (8);
(4) by striking ``(6) The Secretary'' and inserting the
following:
``(3) Notification.--The Secretary''; and
(5) by striking ``(7) The appraised'' and inserting the
following:
``(4) Appraised value.--The appraised''.
[[Page 110 STAT. 1098]]
SEC. 640. DEFINITIONS.
Section 343(a) of the Consolidated Farm and Rural Development Act (7
U.S.C. 1991(a)) is amended--
(1) in paragraph (11)--
(A) in the text preceding subparagraph (A), by
striking ``applicant--'' and inserting ``applicant,
regardless of whether the applicant is participating in
a program under section 310E--''; and
(B) in subparagraph (F)--
(i) by striking ``15 percent'' and inserting
``25 percent''; and
(ii) by inserting before the semicolon at the
end the following: ``, except that this
subparagraph shall not apply to a loan made or
guaranteed under subtitle B''; and
(2) by adding at the end the following:
``(12) Debt forgiveness.--
``(A) In general.--Except as provided in
subparagraph (B), the term `debt forgiveness' means
reducing or terminating a farmer program loan made or
guaranteed under this title, in a manner that results in
a loss to the Secretary, through--
``(i) writing down or writing off a loan under
section 353;
``(ii) compromising, adjusting, reducing, or
charging-off a debt or claim under section 331;
``(iii) paying a loss on a guaranteed loan
under section 357; or
``(iv) discharging a debt as a result of
bankruptcy.
``(B) Loan restructuring.--The term `debt
forgiveness' does not include consolidation,
rescheduling, reamortization, or deferral.''.
SEC. 641. AUTHORIZATION FOR LOANS.
Section 346 of the Consolidated Farm and Rural Development Act (7
U.S.C. 1994) is amended--
(1) in the second sentence of subsection (a), by striking
``with or without'' and all that follows through
``administration''; and
(2) by striking subsection (b) and inserting the following:
``(b) Authorization for Loans.--
``(1) In general.--The Secretary may make or guarantee loans
under subtitles A and B from the Agricultural Credit Insurance
Fund provided for in section 309 in not more than the following
amounts:
``(A) Fiscal year 1996.--For fiscal year 1996,
$3,085,000,000, of which--
``(i) $585,000,000 shall be for direct loans,
of which--
``(I) $85,000,000 shall be for farm
ownership loans under subtitle A; and
``(II) $500,000,000 shall be for
operating loans under subtitle B; and
``(ii) $2,500,000,000 shall be for guaranteed
loans, of which--
``(I) $600,000,000 shall be for
guarantees of farm ownership loans under
subtitle A; and
[[Page 110 STAT. 1099]]
``(II) $1,900,000,000 shall be for
guarantees of operating loans under
subtitle B.
``(B) Fiscal year 1997.--For fiscal year 1997,
$3,165,000,000, of which--
``(i) $585,000,000 shall be for direct loans,
of which--
``(I) $85,000,000 shall be for farm
ownership loans under subtitle A; and
``(II) $500,000,000 shall be for
operating loans under subtitle B; and
``(ii) $2,580,000,000 shall be for guaranteed
loans, of which--
``(I) $630,000,000 shall be for
guarantees of farm ownership loans under
subtitle A; and
``(II) $1,950,000,000 shall be for
guarantees of operating loans under
subtitle B.
``(C) Fiscal year 1998.--For fiscal year 1998,
$3,245,000,000, of which--
``(i) $585,000,000 shall be for direct loans,
of which--
``(I) $85,000,000 shall be for farm
ownership loans under subtitle A; and
``(II) $500,000,000 shall be for
operating loans under subtitle B; and
``(ii) $2,660,000,000 shall be for guaranteed
loans, of which--
``(I) $660,000,000 shall be for
guarantees of farm ownership loans under
subtitle A; and
``(II) $2,000,000,000 shall be for
guarantees of operating loans under
subtitle B.
``(D) Fiscal year 1999.--For fiscal year 1999,
$3,325,000,000, of which--
``(i) $585,000,000 shall be for direct loans,
of which--
``(I) $85,000,000 shall be for farm
ownership loans under subtitle A; and
``(II) $500,000,000 shall be for
operating loans under subtitle B; and
``(ii) $2,740,000,000 shall be for guaranteed
loans, of which--
``(I) $690,000,000 shall be for
guarantees of farm ownership loans under
subtitle A; and
``(II) $2,050,000,000 shall be for
guarantees of operating loans under
subtitle B.
``(E) Fiscal year 2000.--For fiscal year 2000,
$3,435,000,000, of which--
``(i) $585,000,000 shall be for direct loans,
of which--
``(I) $85,000,000 shall be for farm
ownership loans under subtitle A; and
``(II) $500,000,000 shall be for
operating loans under subtitle B; and
``(ii) $2,850,000,000 shall be for guaranteed
loans, of which--
``(I) $750,000,000 shall be for
guarantees of farm ownership loans under
subtitle A; and
[[Page 110 STAT. 1100]]
``(II) $2,100,000,000 shall be for
guarantees of operating loans under
subtitle B.
``(F) Fiscal year 2001.--For fiscal year 2001,
$3,435,000,000, of which--
``(i) $585,000,000 shall be for direct loans,
of which--
``(I) $85,000,000 shall be for farm
ownership loans under subtitle A; and
``(II) $500,000,000 shall be for
operating loans under subtitle B; and
``(ii) $2,850,000,000 shall be for guaranteed
loans, of which--
``(I) $750,000,000 shall be for
guarantees of farm ownership loans under
subtitle A; and
``(II) $2,100,000,000 shall be for
guarantees of operating loans under
subtitle B.
``(G) Fiscal year 2002.--For fiscal year 2002,
$3,435,000,000, of which--
``(i) $585,000,000 shall be for direct loans,
of which--
``(I) $85,000,000 shall be for farm
ownership loans under subtitle A; and
``(II) $500,000,000 shall be for
operating loans under subtitle B; and
``(ii) $2,850,000,000 shall be for guaranteed
loans, of which--
``(I) $750,000,000 shall be for
guarantees of farm ownership loans under
subtitle A; and
``(II) $2,100,000,000 shall be for
guarantees of operating loans under
subtitle B.
``(2) Beginning farmers and ranchers.--
``(A) Direct loans.--
``(i) Farm ownership loans.--
``(I) In general.--Of the amounts
made available under paragraph (1) for
direct farm ownership loans, the
Secretary shall reserve 70 percent for
qualified beginning farmers and
ranchers.
``(II) Down payment loans.--Of the
amounts reserved for a fiscal year under
subclause (I), the Secretary shall
reserve 60 percent for the down payment
loan program under section 310E until
April 1 of the fiscal year.
``(ii) Operating loans.--Of the amounts made
available under paragraph (1) for direct operating
loans, the Secretary shall reserve for qualified
beginning farmers and ranchers--
``(I) for each of fiscal years 1996
through 1998, 25 percent;
``(II) for fiscal year 1999, 30
percent; and
``(III) for each of fiscal years
2000 through 2002, 35 percent.
``(iii) Funds reserved until september 1.--
Except as provided in clause (i)(II), funds
reserved for qualified beginning farmers or
ranchers under this subparagraph for a fiscal year
shall be reserved only until September 1 of the
fiscal year.
``(B) Guaranteed loans.--
[[Page 110 STAT. 1101]]
``(i) Farm ownership loans.--Of the amounts
made available under paragraph (1) for guarantees
of farm ownership loans, the Secretary shall
reserve 25 percent for qualified beginning farmers
and ranchers.
``(ii) Operating loans.--Of the amounts made
available under paragraph (1) for guarantees of
operating loans, the Secretary shall reserve 40
percent for qualified beginning farmers and
ranchers.
``(iii) Funds reserved until april 1.--Funds
reserved for qualified beginning farmers or
ranchers under this subparagraph for a fiscal year
shall be reserved only until April 1 of the fiscal
year.
``(C) Reserved funds for all qualified beginning
farmers and ranchers.--If a qualified beginning farmer
or rancher meets the eligibility criteria for receiving
a direct or guaranteed loan under section 302, 310E, or
311, the Secretary shall make or guarantee the loan if
sufficient funds reserved under this paragraph are
available to make or guarantee the loan.
``(3) Transfer for down payment loans.--
``(A) In general.--Notwithstanding subsection (a),
subject to subparagraph (B)--
``(i) beginning on August 1 of each fiscal
year, the Secretary shall use available
unsubsidized guaranteed farm operating loan funds
to provide direct farm ownership loans approved by
the Secretary to qualified beginning farmers and
ranchers under the down payment loan program
established under section 310E, if sufficient
direct farm ownership loan funds are not otherwise
available; and
<<NOTE: Effective date.>> ``(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,
[[Page 110 STAT. 1102]]
by the Secretary during the fiscal year will be made to
the extent of available amounts.''.
SEC. 642. CONTRACTS ON LOAN SECURITY PROPERTIES.
Section 349 of the Consolidated Farm and Rural Development Act (7
U.S.C. 1997) is amended--
(1) by striking subsection (b) and inserting the following:
``(b) Contracts on Loan Security Properties.--Subject to subsection
(c), the Secretary may enter into a contract related to real property
for conservation, recreation, or wildlife purposes.'';
(2) in subsection (c)--
(A) by striking ``(c) Such easement'' and all that
follows through ``if--'' and inserting the following:
``(c) Limitations.--The Secretary may enter into a contract under
subsection (b) if--'';
(B) in paragraph (2), by adding ``and'' at the end;
(C) in paragraph (3)--
(i) by striking subparagraph (B);
(ii) by striking ``(3)(A)(i)'' and inserting
``(3)(A)'';
(iii) by striking ``Farmers Home
Administration'' and inserting ``Secretary'';
(iv) by striking ``(ii) such easement'' and
inserting ``(B) such contract''; and
(v) by striking ``; or'' and inserting a
period; and
(D) by striking paragraph (4);
(3) in subsection (d), by striking ``easement'' each place
it appears and inserting ``contract'';
(4) in subsection (e)--
(A) in paragraph (1)--
(i) in the matter preceding subparagraph (A),
by striking ``purchase any such easement from the
borrower--'' and inserting ``reduce or forgive the
outstanding debt of a borrower--'';
(ii) by striking ``easement'' each place it
appears and inserting ``contract''; and
(iii) by striking ``Farmers Home
Administration'' each place it appears and
inserting ``Secretary''; and
(B) in paragraph (2)(A), by striking ``easement is
acquired'' and inserting ``contract is entered into'';
(5) in subsection (f)--
(A) in paragraph (1), by striking ``acquire
easements'' and inserting ``enter into contracts''; and
(B) in paragraphs (2) and (3), by striking
``easements'' each place it appears and inserting
``contracts''; and
(6) in subsection (g), by striking ``an easement acquired''
and inserting ``a contract entered into''.
SEC. 643. LIST OF CERTIFIED LENDERS AND INVENTORY PROPERTY DEMONSTRATION
PROJECT.
(a) In General.--Section 351 of the Consolidated Farm and Rural
Development Act (7 U.S.C. 1999) is amended--
(1) in subsection (f)--
(A) by striking ``Each Farmers Home Administration
county supervisor'' and inserting ``The Secretary'';
(B) by striking ``approved lenders'' and inserting
``lenders''; and
(C) by striking ``the Farmers Home Administration'';
and
[[Page 110 STAT. 1103]]
(2) by striking subsection (h).
(b) Technical Amendment.--Section 1320 of the Food Security Act of
1985 (Public Law 99-198; 7 U.S.C. 1999 note) is amended by striking
``Effective only'' and all that follows through ``1995, the'' and
inserting ``The''.
SEC. 644. HOMESTEAD PROPERTY.
Section 352(c) of the Consolidated Farm and Rural Development Act (7
U.S.C. 2000(c)) is amended--
(1) in paragraph (1)(A), by striking ``90'' each place it
appears and inserting ``30''; and
(2) in paragraph (6)--
(A) in the first sentence, by striking ``Within 30''
and all that follows through ``title,'' and insert ``Not
later than the date of acquisition of the property
securing a loan made under this title (or, in the case
of real property in inventory on the date of enactment
of the Federal Agriculture Improvement and Reform Act of
1996, not later than 5 days after the date of enactment
of the Act),''; and
(B) by striking the second sentence.
SEC. 645. RESTRUCTURING.
Section 353 of the Consolidated Farm and Rural Development Act (7
U.S.C. 2001) is amended--
(1) in subsection (c)--
(A) in paragraph (3), by striking subparagraph (C)
and inserting the following:
``(C) Cash flow margin.--For the purpose of
assessing under subparagraph (A) the ability of a
borrower to meet debt obligations and continue farming
operations, the Secretary shall assume that the borrower
needs up to 110 percent of the amount indicated for
payment of farm operating expenses, debt service
obligations, and family living expenses.''; and
(B) by striking paragraph (6) and inserting the
following:
``(6) Termination of loan obligations.--The obligations of a
borrower to the Secretary under a loan shall terminate if--
``(A) the borrower satisfies the requirements of
paragraphs (1) and (2) of subsection (b);
``(B) the value of the restructured loan is less
than the recovery value; and
``(C) not later than 90 days after receipt of the
notification described in paragraph (4)(B), the borrower
pays (or obtains third-party financing to pay) the
Secretary an amount equal to the current market
value.'';
(2) by striking subsection (k); and
(3) by redesignating subsections (l) through (p) as
subsections (k) through (o), respectively.
SEC. 646. TRANSFER OF INVENTORY LAND FOR CONSERVATION PURPOSES.
Section 354 of the Consolidated Farm and Rural Development Act (7
U.S.C. 2002) is amended--
(1) in the matter preceding paragraph (1), by striking ``The
Secretary, without reimbursement,'' and inserting the following:
[[Page 110 STAT. 1104]]
``(a) In General.--Subject to subsection (b), the Secretary'';
(2) by striking paragraph (2) and inserting the following:
``(2) that is eligible to be disposed of in accordance with
section 335; and''; and
(3) by adding at the end the following:
``(b) Conditions.--The Secretary may not transfer any property or
interest in property under subsection (a) unless--
``(1) at least 2 public notices are given of the transfer;
``(2) if requested, at least 1 public meeting is held prior
to the transfer; and
``(3) the Governor and at least 1 elected county official of
the State and county where the property is located are consulted
prior to the transfer.''.
SEC. 647. IMPLEMENTATION OF TARGET PARTICIPATION RATES.
Section 355 of the Consolidated Farm and Rural Development Act (7
U.S.C. 2003) is amended by adding at the end the following:
``(f) Implementation Consistent With Supreme Court Holding.--Not
later than 180 days after the date of enactment of this subsection, the
Secretary shall ensure that the implementation of this section is
consistent with the holding of the Supreme Court in Adarand
Constructors, Inc. v. Federico Pena, Secretary of Transportation, 115 S.
Ct. 2097 (1995).''.
SEC. 648. DELINQUENT BORROWERS.
(a) Payment of Interest as a Condition of Loan Servicing for
Borrowers.--The Consolidated Farm and Rural Development Act (7 U.S.C.
1921 et seq.) is amended by adding at the end the following:
``SEC. 372. <<NOTE: 7 USC 2008g.>> PAYMENT OF INTEREST AS A CONDITION
OF LOAN SERVICING FOR BORROWERS.
``The Secretary may not reschedule or reamortize a loan for a
borrower under this title who has not requested consideration under
section 331D(e) unless the borrower pays a portion, as determined by the
Secretary, of the interest due on the loan.''.
(b) Loan and Loan Servicing Limitations.--The Consolidated Farm and
Rural Development Act (7 U.S.C. 1921 et seq.) (as amended by subsection
(a)) is amended by adding at the end the following:
``SEC. 373. <<NOTE: 7 USC 2008h.>> LOAN AND LOAN SERVICING LIMITATIONS.
``(a) Delinquent Borrowers Prohibited From Obtaining Direct
Operating Loans.--The Secretary may not make a direct operating loan
under subtitle B to a borrower who is delinquent on any loan made or
guaranteed under this title.
``(b) Loans Prohibited for Borrowers That Have Received Debt
Forgiveness.--
``(1) In general.--Except as provided in paragraph (2), the
Secretary may not make or guarantee a loan under this title to a
borrower who received debt forgiveness on a loan made or
guaranteed under this title.
``(2) Exception.--The Secretary may make a direct or
guaranteed farm operating loan for paying annual farm or ranch
operating expenses of a borrower who was restructured with a
write-down under section 353.
``(c) No More Than 1 Debt Forgiveness For A Borrower On A Direct
Loan.--The Secretary may not provide to a borrower debt forgiveness on a
direct loan made under this title if the
[[Page 110 STAT. 1105]]
borrower has received debt forgiveness on another direct loan made under
this title.''.
SEC. 649. SHORT FORM CERTIFICATION OF FARM PROGRAM BORROWER COMPLIANCE.
The Consolidated Farm and Rural Development Act (7 U.S.C. 1921 et
seq.) (as amended by section 648) is amended by adding at the end the
following:
``SEC. 374. <<NOTE: 7 USC 2008i.>> SHORT FORM CERTIFICATION OF FARM
PROGRAM BORROWER COMPLIANCE.
``The Secretary shall develop and utilize a consolidated short form
for farm program borrowers to use in certifying compliance with any
applicable provision of law (including a regulation) that serves as an
eligibility prerequisite for a loan made under this title.''.
SEC. 650. <<NOTE: 7 USC 2001 note.>> CREDIT STUDY.
(a) <<NOTE: Reports.>> In General.--The Secretary of Agriculture
shall conduct a study and report to the Committee on Agriculture of the
House of Representatives and the Committee on Agriculture, Nutrition,
and Forestry of the Senate on the demand for and availability of credit
in rural areas for agriculture, housing, and rural development.
(b) Purpose.--The purpose of the study shall be to ensure that
Congress has current and comprehensive information to consider as
Congress deliberates on rural credit needs and the availability of
credit to satisfy the needs of rural areas of the United States.
(c) Items in Study.--In conducting the study, the Secretary shall
base the study on the most current available data and analyze--
(1) rural demand for credit from the Farm Credit System, the
ability of the Farm Credit System to meet the demand, and the
extent to which the Farm Credit System provides loans to satisfy
the demand;
(2) rural demand for credit from the United States banking
system, the ability of banks to meet the demand, and the extent
to which banks provide loans to satisfy the demand;
(3) rural demand for credit from the Secretary, the ability
of the Secretary to meet the demand, and the extent to which the
Secretary provides loans to satisfy the demand;
(4) rural demand for credit from other Federal agencies, the
ability of the agencies to meet the demand, and the extent to
which the agencies provide loans to satisfy the demand;
(5) what measure or measures exist to gauge the overall
demand for rural credit, the extent to which rural demand for
credit is satisfied, and what the measures have demonstrated;
(6) a comparison of the interest rates and terms charged by
the Farm Credit System Farm Credit Banks, production credit
associations, and banks for cooperatives with the rates and
terms charged by the banks of the United States for credit of
comparable risk and maturity;
(7) the advantages and disadvantages of the modernization
and expansion proposals of the Farm Credit System on the Farm
Credit System, the United States banking system, rural
[[Page 110 STAT. 1106]]
users of credit, local rural communities, and the Federal
Government, including--
(A) any added risk to the safety and soundness of
the Farm Credit System that may result from approval of
a proposal; and
(B) any positive or adverse impacts on competition
between the Farm Credit System and the banks of the
United States in providing credit to rural users;
(8) the nature and extent of the unsatisfied rural credit
need that the Farm Credit System proposals are supposed to
address and what aspects of the present Farm Credit System
prevent the Farm Credit System from meeting the need;
(9) the advantages and disadvantages of the proposal by
commercial bankers to allow banks access to the Farm Credit
System as a funding source on the Farm Credit System, the United
States banking system, rural users of credit, local rural
communities, and the Federal Government, including--
(A) any added risk to the safety and soundness of
the Farm Credit System that may result from approval of
the proposal; and
(B) any positive or adverse impacts on competition
between the Farm Credit System and the banks of the
United States in providing credit to rural users; and
(10) problems that commercial banks have in obtaining
capital for lending in rural areas, how access to Farm Credit
System funds would improve the availability of capital in rural
areas in ways that cannot be achieved in the system in existence
on the date of enactment of this Act, and the possible effects
on the viability of the Farm Credit System of granting banks
access to Farm Credit System funds.
(d) Interagency Task Force.--In completing the study, the Secretary
shall use, among other things, data and information obtained by the
interagency task force on rural credit.
Subtitle E--General Provisions
SEC. 661. CONFORMING AMENDMENTS.
(a) Section 307(a) of the Consolidated Farm and Rural Development
Act (7 U.S.C. 1927(a)) is amended--
(1) in paragraph (4), by striking ``304(b), 306(a)(1), and
310B'' and inserting ``306(a)(1) and 310B''; and
(2) in paragraph (6)(B)--
(A) by striking clauses (i), (ii), (iv), and (vii);
(B) in clause (v), by adding ``and'' at the end;
(C) in clause (vi), by striking ``, and'' at the end
and inserting a period; and
(D) by redesignating clauses (iii), (v), and (vi) as
clauses (i), (ii), and (iii), respectively.
(b) The second sentence of section 309(g)(1) of the Consolidated
Farm and Rural Development Act (7 U.S.C. 1929(g)(1)) is amended by
striking ``section 308,''.
(c) Section 309A of the Consolidated Farm and Rural Development Act
(7 U.S.C. 1929a) is amended--
(1) in the second sentence of subsection (a), by striking
``304(b), 306(a)(1), 306(a)(14), 310B, and 312(b)'' and
inserting ``306(a)(1), 306(a)(14), and 310B''; and
[[Page 110 STAT. 1107]]
(2) in the first sentence of subsection (b), by striking
``and section 308''.
(d) Section 310B(d) of the Consolidated Farm and Rural Development
Act (7 U.S.C. 1932(d)) is amended--
(1) by striking ``sections 304(b), 310B, and 312(b)'' each
place it appears in paragraphs (2), (3), and (4) and inserting
``this section''; and
(2) in paragraph (6), by striking ``this section, section
304, or section 312'' and inserting ``this section''.
(e) The first sentence of section 310D(a) of the Consolidated Farm
and Rural Development Act (7 U.S.C. 1934(a)) is amended by striking
``paragraphs (1) through (5) of section 303(a), or subparagraphs (A)
through (E) of section 304(a)(1)'' and inserting ``section 303(a), or
paragraphs (1) through (5) of section 304(a)''.
(f) Section 311(b)(1) of the Consolidated Farm and Rural Development
Act (7 U.S.C. 1941(b)(1)) is amended by striking ``and for the purposes
specified in section 312''.
(g) Section 316(a) of the Consolidated Farm and Rural Development
Act (7 U.S.C. 1946(a)) is amended by striking paragraph (3).
(h) Section 343 of the Consolidated Farm and Rural Development Act
(7 U.S.C. 1991) is amended--
(1) in subsection (a)(10), by striking ``recreation loan
(RL) under section 304,''; and
(2) in subsection (b)--
(A) in the matter preceding paragraph (1), by
striking ``351(h),''; and
(B) by striking paragraph (4) and inserting the
following:
``(4) Preservation loan service program.--The term
`preservation loan service program' means homestead retention as
authorized under section 352.''.
(i) The first sentence of section 344 of the Consolidated Farm and
Rural Development Act (7 U.S.C. 1992) is amended by striking ``304(b),
306(a)(1), 310B, 312(b), or 312(c)'' and inserting ``306(a)(1), 310B, or
312(c)''.
(j) Section 353(l) of the Consolidated Farm and Rural Development
Act (as redesignated by section 645(3)) is amended by striking ``and
subparagraphs (A)(i) and (C)(i) of section 335(e)(1),''.
SEC. 662. ELECTRONIC FILING OF EFFECTIVE FINANCING STATEMENTS UNDER THE
CLEAR TITLE PROVISIONS OF THE FOOD SECURITY ACT OF 1985.
Section 1324(c)(4) of the Food Security Act of 1985 (7 U.S.C.
1631(c)(4)) is amended--
(1) in subparagraph (A), by striking ``thereof'' and
inserting ``of the statement, or, in the case of a State which
(under the applicable State law provisions of the Uniform
Commercial Code) allows the electronic filing of financing
statements without the signature of the debtor, is an
electronically reproduced copy of the statement''; and
(2) in each of subparagraphs (B) and (C), by inserting
``other than in the case of an electronically reproduced copy of
the statement,'' before ``is''.
[[Page 110 STAT. 1108]]
SEC. 663. <<NOTE: 7 USC 1922 note.>> EFFECTIVE DATE.
(a) In General.--Except as provided in subsection (b), the
amendments made by this title shall become effective on the date of
enactment of this Act.
(b) Delayed Effective Dates.--The amendments made by sections 601,
606, 611, 612, 622, 623, 625, 633, 640(1), 642, 645(1), 648(a), and 649
shall become effective 90 days after the date of enactment of this Act.
(c) Transition Provision.--The amendments made by sections 638 and
644 shall not apply with respect to a complete application to acquire
inventory property submitted prior to the date of enactment of this Act.
(d) Regulations.--Notwithstanding any other provision of law,
regulations to implement the amendments made by this title shall be
published as interim final rules with request for comments and may be
made effective immediately on publication.
TITLE VII--RURAL DEVELOPMENT
Subtitle A--Amendments to the Food, Agriculture, Conservation, and Trade
Act of 1990
CHAPTER 1--GENERAL PROVISIONS
SEC. 701. RURAL INVESTMENT PARTNERSHIPS.
Subtitle B of title XXIII of the Food, Agriculture, Conservation,
and Trade Act of 1990 (7 U.S.C. 2007 et seq.) is repealed.
SEC. 702. WATER AND WASTE FACILITY FINANCING.
Section 2322 of the Food, Agriculture, Conservation, and Trade Act
of 1990 (7 U.S.C. 1926-1) is repealed.
SEC. 703. RURAL WASTEWATER CIRCUIT RIDER PROGRAM.
Section 2324 of the Food, Agriculture, Conservation, and Trade Act
of 1990 (Public Law 101-624; 7 U.S.C. 1926 note) is repealed.
SEC. 704. TELEMEDICINE AND DISTANCE LEARNING SERVICES IN RURAL AREAS.
Chapter 1 of subtitle D of title XXIII of the Food, Agriculture,
Conservation, and Trade Act of 1990 (7 U.S.C. 950aaa et seq.) is amended
to read as follows:
``CHAPTER 1--TELEMEDICINE AND DISTANCE LEARNING SERVICES IN RURAL AREAS
``SEC. 2331. <<NOTE: 7 USC 950aaa.>> PURPOSE.
``The purpose of this chapter is to encourage and improve
telemedicine services and distance learning services in rural areas
through the use of telecommunications, computer networks, and related
advanced technologies by students, teachers, medical professionals, and
rural residents.
<<NOTE: 7 USC 950aaa-1.>> ``SEC. 2332. DEFINITIONS.
``In this chapter:
[[Page 110 STAT. 1109]]
``(1) Construct.--The term `construct' means to construct,
acquire, install, improve, or extend a facility or system.
``(2) Cost of money loan.--The term `cost of money loan'
means a loan made under this chapter bearing interest at a rate
equal to the then current cost to the Federal Government of
loans of similar maturity.
``(3) Secretary.--The term `Secretary' means the Secretary
of Agriculture.
``SEC. 2333. <<NOTE: 7 USC 950aaa-2.>> TELEMEDICINE AND DISTANCE
LEARNING SERVICES IN RURAL AREAS.
``(a) Services to Rural Areas.--The Secretary may provide financial
assistance for the purpose of financing the construction of facilities
and systems to provide telemedicine services and distance learning
services in rural areas.
``(b) Financial Assistance.--
``(1) In general.--Financial assistance shall consist of
grants or cost of money loans, or both.
``(2) Form.--The Secretary shall determine the portion of
the financial assistance provided to a recipient that consists
of grants and the portion that consists of cost of money loans
so as to result in the maximum feasible repayment to the Federal
Government of the financial assistance, based on the ability to
repay of the recipient and full utilization of funds made
available to carry out this chapter.
``(c) Recipients.--
``(1) In general.--The Secretary may provide financial
assistance under this chapter to--
``(A) entities using telemedicine services or
distance learning services; and
``(B) entities providing or proposing to provide
telemedicine service or distance learning service to
other persons at rates calculated to ensure that the
benefit of the financial assistance is passed through to
the other persons.
``(2) Electric or telecommunications borrowers.--
``(A) Loans to borrowers.--Subject to subparagraph
(B), the Secretary may provide a cost of money loan
under this chapter to a borrower of an electric or
telecommunications loan under the Rural Electrification
Act of 1936 (7 U.S.C. 901 et seq.). A borrower receiving
a cost of money loan under this paragraph shall--
``(i) make the funds provided available to
entities that qualify under paragraph (1) for
projects satisfying the requirements of this
chapter;
``(ii) use the funds provided to acquire,
install, improve, or extend a system referred to
in subsection (a); or
``(iii) use the funds provided to install,
improve, or extend a facility referred to in
subsection (a).
``(B) Limitations.--A borrower of an electric or
telecommunications loan under the Rural Electrification
Act of 1936 shall--
``(i) make a system or facility funded under
subparagraph (A) available to entities that
qualify under paragraph (1); and
[[Page 110 STAT. 1110]]
``(ii) neither retain from the proceeds of a
loan provided under subparagraph (A), nor assess a
qualifying entity under paragraph (1), any amount
except as may be required to pay the actual costs
incurred in administering the loan or making the
system or facility available.
``(3) Appeal.--If the Secretary rejects the application of a
borrower who applies for a cost of money loan or grant under
this section, the borrower may appeal the decision to the
Secretary not later than 10 days after the borrower is notified
of the rejection.
``(4) Assistance to provide or improve services.--Financial
assistance may be provided under this chapter for a facility
regardless of the location of the facility if the Secretary
determines that the assistance is necessary to provide or
improve telemedicine services or distance learning services in a
rural area.
``(d) Priority.--The Secretary shall establish procedures to
prioritize financial assistance under this chapter considering--
``(1) the need for the assistance in the affected rural
area;
``(2) the financial need of the applicant;
``(3) the population sparsity of the affected rural area;
``(4) the local involvement in the project serving the
affected rural area;
``(5) geographic diversity among the recipients of financial
assistance;
``(6) the utilization of the telecommunications facilities
of any telecommunications provider serving the affected rural
area;
``(7) the portion of total project financing provided by the
applicant from the funds of the applicant;
``(8) the portion of project financing provided by the
applicant with funds obtained from non-Federal sources;
``(9) the joint utilization of facilities financed by other
financial assistance;
``(10) the coordination of the proposed project with
regional projects or networks;
``(11) service to the greatest practical number of persons
within the general geographic area covered by the financial
assistance;
``(12) conformity with the State strategic plan as prepared
under section 381D of the Consolidated Farm and Rural
Development Act; and
``(13) other factors determined appropriate by the
Secretary.
``(e) <<NOTE: Federal Register, publication.>> Maximum Amount of
Assistance to Individual Recipients.--The Secretary may establish the
maximum amount of financial assistance to be made available to an
individual recipient for each fiscal year under this chapter, by
publishing notice of the maximum amount in the Federal Register not more
than 45 days after funds are made available for the fiscal year to carry
out this chapter.
``(f) Use of Funds.--Financial assistance provided under this
chapter shall be used for--
``(1) the development and acquisition of instructional
programming;
``(2) the development and acquisition, through lease or
purchase, of computer hardware and software, audio and visual
[[Page 110 STAT. 1111]]
equipment, computer network components, telecommunications
terminal equipment, telecommunications transmission facilities,
data terminal equipment, or interactive video equipment, or
other facilities that would further telemedicine services or
distance learning services;
``(3) providing technical assistance and instruction for the
development or use of the programming, equipment, or facilities
referred to in paragraphs (1) and (2); or
``(4) other uses that are consistent with this chapter, as
determined by the Secretary.
``(g) Salaries and Expenses.--Notwithstanding subsection (f),
financial assistance provided under this chapter shall not be used for
paying salaries or administrative expenses.
``(h) Expediting Coordinated Telephone Loans.--
``(1) In general.--The Secretary may establish and carry out
procedures to ensure that expedited consideration and
determination is given to applications for loans and advances of
funds submitted by local exchange carriers under this chapter
and the Rural Electrification Act of 1936 (7 U.S.C. 901 et seq.)
to enable the exchange carriers to provide advanced
telecommunications services in rural areas in conjunction with
any other projects carried out under this chapter.
``(2) Deadline imposed on
secretary. <<NOTE: Notification.>> --Not later than 45 days
after the receipt of a completed application for an expedited
telephone loan under paragraph (1), the Secretary shall notify
the applicant in writing of the decision of the Secretary
regarding the application.
``(i) Notification of Local Exchange Carrier.--
``(1) Applicants.--Each applicant for a grant for a
telemedicine or distance learning project established under this
chapter shall notify the appropriate local telephone exchange
carrier regarding the application filed with the Secretary for
the grant.
``(2) Secretary.--The Secretary shall--
``(A) publish notice of applications received for
grants under this chapter for telemedicine or distance
learning projects; and
``(B) make the applications available for
inspection.
``SEC. 2334. <<NOTE: 7 USC 950aaa-3.>> ADMINISTRATION.
``(a) Nonduplication.--The Secretary shall ensure that facilities
constructed using financial assistance provided under this chapter do
not duplicate adequate established telemedicine services or distance
learning services.
``(b) Loan Maturity.--The maturities of cost of money loans shall be
determined by the Secretary, based on the useful life of the facility
being financed, except that the loan shall not be for a period of more
than 10 years.
``(c) Loan Security and Feasibility.--The Secretary shall make a
cost of money loan only if the Secretary determines that the security
for the loan is reasonably adequate and that the loan will be repaid
within the period of the loan.
``(d) Encouraging Consortia.--The Secretary shall encourage the
development of consortia to provide telemedicine services or distance
learning services through telecommunications in rural areas served by a
telecommunications provider.
[[Page 110 STAT. 1112]]
``(e) Coordination With Other Agencies.--The Secretary shall
coordinate, to the extent practicable, with other Federal and State
agencies with similar grant or loan programs to pool resources for
funding meritorious proposals in rural areas.
``(f) Informational Efforts.--The Secretary shall establish and
implement procedures to carry out informational efforts to advise
potential end users located in rural areas of each State about the
program authorized by this chapter.
``SEC. 2335. <<NOTE: 7 USC 950aaa-4.>> REGULATIONS.
``Not later than 180 days after the date of enactment of the Federal
Agriculture Improvement and Reform Act of 1996, the Secretary shall
issue regulations to carry out this chapter.
``SEC. 2335A. <<NOTE: 7 USC 950aaa-5.>> AUTHORIZATION OF
APPROPRIATIONS.
``There are authorized to be appropriated to carry out this chapter
$100,000,000 for each of fiscal years 1996 through 2002.''.
SEC. 705. LIMITATION ON AUTHORIZATION OF APPROPRIATIONS FOR RURAL
TECHNOLOGY GRANTS.
Section 2347 of the Food, Agriculture, Conservation, and Trade Act
of 1990 (Public Law 101-624; 104 Stat. 4034) is amended--
(1) <<NOTE: 7 USC 1932.>> by striking ``(a) In General.--
''; and
(2) by striking subsection (b).
SEC. 706. DEMONSTRATION PROJECTS.
Section 2348 of the Food, Agriculture, Conservation, and Trade Act
of 1990 (7 U.S.C. 2662a) is repealed.
SEC. 707. MONITORING THE ECONOMIC PROGRESS OF RURAL AMERICA.
Section 2382 of the Food, Agriculture, Conservation, and Trade Act
of 1990 (Public Law 101-624; 13 U.S.C. 141 note) is repealed.
SEC. 708. ANALYSIS BY OFFICE OF TECHNOLOGY ASSESSMENT.
Section 2385 of the Food, Agriculture, Conservation, and Trade Act
of 1990 (Public Law 101-624; 7 U.S.C. 950aaa-4 note) is repealed.
SEC. 709. RURAL HEALTH INFRASTRUCTURE IMPROVEMENT.
Section 2391 of the Food, Agriculture, Conservation, and Trade Act
of 1990 (Public Law 101-624; 7 U.S.C. 2662 note) is repealed.
SEC. 710. CENSUS OF AGRICULTURE.
Section 2392 of the Food, Agriculture, Conservation, and Trade Act
of 1990 (Public Law 101-624; 104 Stat. 4057) <<NOTE: 13 USC 142 note.>>
is repealed.
SEC. 711. <<NOTE: 15 USC 714 note.>> STUDY OF THE TRANSPORTATION OF
FERTILIZER AND AGRICULTURAL CHEMICALS TO FARMERS.
Section 2517 of the Food, Agriculture, Conservation, and Trade Act
of 1990 (Public Law 101-624; 104 Stat. 4077) is repealed.
CHAPTER 2--ALTERNATIVE AGRICULTURAL RESEARCH AND COMMERCIALIZATION
SEC. 721. DEFINITIONS.
Section 1657(c) of the Food, Agriculture, Conservation, and Trade
Act of 1990 (7 U.S.C. 5901(c)) is amended--
(1) by striking paragraphs (3) and (4);
[[Page 110 STAT. 1113]]
(2) by redesignating paragraph (5) as paragraph (3);
(3) by redesignating paragraphs (6) through (12) as
paragraphs (7) through (13), respectively; and
(4) by inserting after paragraph (3) (as redesignated by
paragraph (2)) the following:
``(4) Corporate board.--The term `Corporate Board' means the
Board of Directors of the Corporation described in section 1659.
``(5) Corporation.--The term `Corporation' means the
Alternative Agricultural Research and Commercialization
Corporation established under section 1658.
``(6) Executive director.--The term `Executive Director'
means the Executive Director of the Corporation appointed under
section 1659(e).''.
SEC. 722. ALTERNATIVE AGRICULTURAL RESEARCH AND COMMERCIALIZATION
CORPORATION.
(a) In General.--Section 1658 of the Food, Agriculture,
Conservation, and Trade Act of 1990 (7 U.S.C. 5902) is amended to read
as follows:
``SEC. 1658. ALTERNATIVE AGRICULTURAL RESEARCH AND COMMERCIALIZATION
CORPORATION.
``(a) Establishment.--To carry out this subtitle, there is created a
body corporate to be known as the Alternative Agricultural Research and
Commercialization Corporation, which shall be an agency of the United
States, within the Department of Agriculture, subject to the general
supervision and direction of the Secretary, except as specifically
provided for in this subtitle.
``(b) Purpose.--The purpose of the Corporation is to--
``(1) expedite the development and market penetration of
industrial, nonfood, nonfeed products from agricultural and
forestry materials; and
``(2) assist the private sector in bridging the gap between
the results of research into nonfood, nonfeed products and the
commercialization of the research.
``(c) Place of Incorporation. <<NOTE: District of Columbia.>> --The
Corporation shall be incorporated in the District of Columbia.
``(d) Central Office.--The Secretary shall provide facilities for
the principal office of the Corporation within the Washington, D.C.,
metropolitan area.
``(e) Wholly-Owned Government Corporation.--The Corporation shall be
considered a wholly-owned government corporation in accordance with
chapter 91 of title 31, United States Code.
``(f) General Powers.--In addition to any other powers granted to
the Corporation under this subtitle, the Corporation--
``(1) shall have succession in its corporate name;
``(2) may adopt, alter, and rescind any bylaw and adopt and
alter a corporate seal, which shall be judicially noticed;
``(3) may enter into any agreement or contract with a person
or private or governmental agency, except that the Corporation
shall not provide any financial assistance unless specifically
authorized by this subtitle;
``(4) may lease, purchase, accept a gift or donation of, or
otherwise acquire, use, own, hold, improve, or otherwise deal in
or with, and sell, convey, mortgage, pledge, lease, exchange, or
otherwise dispose of, any property or interest in property, as
the Corporation considers necessary in the transaction of
[[Page 110 STAT. 1114]]
the business of the Corporation, except that this paragraph
shall not provide authority for carrying out a program of real
estate investment;
``(5) may sue and be sued in the corporate name of the
Corporation, except that--
``(A) no attachment, injunction, garnishment, or
similar process shall be issued against the Corporation
or property of the Corporation; and
``(B) <<NOTE: Courts.>> exclusive original
jurisdiction shall reside in the district courts of the
United States, but the Corporation may intervene in any
court in any suit, action, or proceeding in which the
Corporation has an interest;
``(6) may independently retain legal representation;
``(7) may provide for and designate such committees, and the
functions of the committees, as the Corporate Board considers
necessary or desirable;
``(8) may indemnify the Executive Director and other
officers of the Corporation, as the Corporate Board considers
necessary and desirable, except that the Executive Director and
officers shall not be indemnified for an act outside the scope
of employment;
``(9) may, with the consent of any board, commission,
independent establishment, or executive department of the
Federal Government, including any field service, use
information, services, facilities, officials, and employees in
carrying out this subtitle, and pay for the use, which payments
shall be transferred to the applicable appropriation account
that incurred the expense;
``(10) may obtain the services and fix the compensation of
any consultant and otherwise procure temporary and intermittent
services under section 3109(b) of title 5, United States Code;
``(11) may use the United States mails on the same terms and
conditions as the Executive agencies of the Federal Government;
``(12) shall have the rights, privileges, and immunities of
the United States with respect to the right to priority of
payment with respect to debts due from bankrupt, insolvent, or
deceased creditors;
``(13) may collect or compromise any obligations assigned to
or held by the Corporation, including any legal or equitable
rights accruing to the Corporation;
``(14) shall determine the character of, and necessity for,
obligations and expenditures of the Corporation and the manner
in which the obligations and expenditures shall be incurred,
allowed, and paid, subject to provisions of law specifically
applicable to Government corporations;
``(15) may make final and conclusive settlement and
adjustment of any claim by or against the Corporation or a
fiscal officer of the Corporation;
``(16) may sell assets, loans, and equity interests acquired
in connection with the financing of projects funded by the
Corporation; and
``(17) may exercise all other lawful powers necessarily or
reasonably related to the establishment of the Corporation to
carry out this subtitle and the powers, purposes, functions,
duties, and authorized activities of the Corporation.
[[Page 110 STAT. 1115]]
``(g) Specific Powers.--To carry out this subtitle, the Corporation
may--
``(1) make grants to, and enter into cooperative agreements
and contracts with, eligible applicants for research,
development, and demonstration projects in accordance with
section 1660;
``(2) make loans and interest subsidy payments and invest
venture capital in accordance with section 1661;
``(3) collect and disseminate information concerning State,
regional, and local commercialization projects;
``(4) search for new nonfood, nonfeed products that may be
produced from agricultural commodities and for processes to
produce the products;
``(5) administer, maintain, and dispense funds from the Fund
to facilitate the conduct of activities under this subtitle; and
``(6) engage in other activities incident to carrying out
the functions of the Corporation.''.
(b) Wholly-Owned Government Corporation.--Section 9101(3) of title
31, United States Code, is amended--
(1) by redesignating subparagraph (N) (relating to the
Uranium Enrichment Corporation) as subparagraph (O); and
(2) by adding at the end the following:
``(Q) the Alternative Agricultural Research and
Commercialization Corporation.''.
(c) Conforming Amendment.--Section 211(b)(5) of the Department of
Agriculture Reorganization Act of 1994 (7 U.S.C. 6911(b)(5)) is amended
by striking ``Alternative Agricultural Research and Commercialization
Board'' and inserting ``Corporate Board of the Alternative Agricultural
Research and Commercialization Corporation''.
SEC. 723. BOARD OF DIRECTORS, EMPLOYEES, AND FACILITIES.
(a) In General.--Section 1659 of the Food, Agriculture,
Conservation, and Trade Act of 1990 (7 U.S.C. 5903) is amended to read
as follows:
``SEC. 1659. BOARD OF DIRECTORS, EMPLOYEES, AND FACILITIES.
``(a) In General.--The powers of the Corporation shall be vested in
a Corporate Board.
``(b) Members of the Corporate Board.--The Corporate Board shall
consist of 11 members as follows:
``(1) The Under Secretary of Agriculture for Rural
Development.
``(2) The Under Secretary of Agriculture for Research,
Education, and Economics.
``(3) 5 members appointed by the Secretary, of whom--
``(A) at least 1 member shall be a representative of
the leading scientific disciplines relevant to the
activities of the Corporation;
``(B) at least 1 member shall be a producer or
processor of agricultural commodities;
``(C) at least 1 member shall be a person who is
privately engaged in the commercialization of new
nonfood, nonfeed products from agricultural commodities;
and
``(D) at least 1 member shall have expertise in
financial management.
[[Page 110 STAT. 1116]]
A different member shall be appointed pursuant to each
subparagraph of this paragraph.
``(4) 2 members appointed by the Secretary who--
``(A) have expertise in areas of applied research
relating to the development or commercialization of new
nonfood, nonfeed products; and
``(B) shall be appointed from a group of at least 4
individuals nominated by the Director of the National
Science Foundation if the nominations are made not later
than 60 days after the date a vacancy occurs.
``(5) 2 members appointed by the Secretary who--
``(A) have expertise in financial and managerial
matters; and
``(B) shall be appointed from a group of at least 4
individuals nominated by the Secretary of Commerce if
the nominations are made not later than 60 days after
the date a vacancy occurs.
``(c) Responsibilities of the Corporate Board.--
``(1) In general.--The Corporate Board shall--
``(A) be responsible for the general supervision of
the Corporation and Regional Centers established under
section 1663;
``(B) determine (in consultation with Regional
Centers) high priority commercialization areas to
receive assistance under section 1663;
``(C) review any grant, contract, or cooperative
agreement to be made or entered into by the Corporation
under section 1660 and any financial assistance to be
provided under section 1661;
``(D) make the final decision, by majority vote, on
whether and how to provide assistance to an applicant;
and
``(E) develop and establish a budget plan and a
long-term operating plan to carry out this subtitle.
``(2) Authority of the secretary.--
``(A) In general.--The Secretary shall vacate and
remand to the Corporate Board for reconsideration any
decision made pursuant to paragraph (1)(D) if the
Secretary determines that there has been a violation of
subsection (j), or any conflict of interest provisions
of the bylaws of the Corporate Board, with respect to
the decision.
``(B) Reasons.--In the case of any violation and
referral of a funding decision to the Corporate Board,
the Secretary shall inform the Corporate Board of the
reasons for any remand pursuant to subparagraph (A).
``(d) Chairperson.--The members of the Corporate Board shall select
a Chairperson from among the members of the Corporate Board. The term of
office of the Chairperson shall be 2 years. The members referred to in
paragraphs (1) and (2) of subsection (b) may not serve as Chairperson.
``(e) Executive Director.--
``(1) Appointment.--The Corporate Board shall appoint an
Executive Director, subject to the approval of the Secretary.
``(2) Duties.--The Executive Director shall be the chief
executive officer of the Corporation, with such power and
authority as may be conferred by the Corporate Board.
[[Page 110 STAT. 1117]]
``(3) Compensation.--The Executive Director shall receive
basic pay at the rate provided for level IV of the Executive
Schedule under section 5315 of title 5, United States Code.
``(f) Officers.--The Corporate Board shall establish the offices and
appoint the officers of the Corporation, including a Secretary, and
define the duties of the officers in a manner consistent with this
subtitle.
``(g) Meetings.--The Corporate Board shall meet at least 3 times
each fiscal year at the call of the Chairperson or at the request of the
Executive Director. The location of the meetings shall be subject to
approval of the Executive Director. A quorum of the Corporate Board
shall consist of a majority of the members. The decisions of the
Corporate Board shall be made by majority vote.
``(h) Term; Vacancies.--
``(1) In general.--The term of office of a member of the
Corporate Board shall be 4 years, except that the members
initially appointed shall be appointed to serve staggered terms.
A member appointed to fill a vacancy for an unexpired term may
be appointed only for the remainder of the term. A vacancy on
the Corporate Board shall be filled in the same manner as the
original appointment. The Secretary may remove a member of the
Corporate Board only for cause.
``(2) Transition measure.--The Secretary may appoint to the
Corporate Board an individual who, on the day before the date of
enactment of the Federal Agriculture Improvement and Reform Act
of 1996, was serving on the former Alternative Agricultural
Research and Commercialization Board, for a term that does not
exceed the term for which the individual was appointed to the
former Board.
``(i) Compensation.--A member of the Corporate Board who is an
officer or employee of the United States shall not receive any
additional compensation by reason of service on the Corporate Board. Any
other member shall receive, for each day (including travel time) the
member is engaged in the performance of the functions of the Corporate
Board, compensation at a rate not to exceed the daily equivalent of the
annual rate in effect for Level IV of the Executive Schedule. A member
of the Corporate Board shall be reimbursed for travel, subsistence, and
other necessary expenses incurred by the member in the performance of
the duties of the member.
``(j) Conflict of Interest; Financial Disclosure.--
``(1) Conflict of interest.--Except as provided in paragraph
(3), no member of the Corporate Board shall vote on any matter
respecting any application, contract, claim, or other particular
matter pending before the Corporation, in which, to the
knowledge of the member, the member, spouse, or child of the
member, partner, or organization in which the member is serving
as officer, director, trustee, partner, or employee, or any
person or organization with whom the member is negotiating or
has any arrangement concerning prospective employment, has a
financial interest.
``(2) Violations.--Violation of paragraph (1) by a member of
the Corporate Board shall be cause for removal of the member,
but shall not impair or otherwise affect the validity of any
otherwise lawful action by the Corporation in which the member
participated.
[[Page 110 STAT. 1118]]
``(3) Exceptions.--The prohibitions contained in paragraph
(1) shall not apply if a member of the Corporate Board advises
the Corporate Board of the nature of the particular matter in
which the member proposes to participate, and if the member
makes a full disclosure of the financial interest, prior to any
participation, and the Corporate Board determines, by majority
vote, that the financial interest is too remote or too
inconsequential to affect the integrity of the member's services
to the Corporation in that matter. The member involved shall not
vote on the determination.
``(4) Financial disclosure.--A Board member shall be subject
to the financial disclosure requirements set forth in subchapter
B of chapter XVI of title 5, Code of Federal Regulations (or any
corresponding or similar regulation or ruling), applicable to a
special Government employee (as defined in section 202(a) of
title 18, United States Code).
``(k) Delegation of Authority.--
``(1) In general.--The Corporate Board may, by resolution,
delegate to the Chairperson, the Executive Director, or any
other officer or employee any function, power, or duty assigned
to the Corporation under this subtitle, other than a function,
power, or duty expressly vested in the Corporate Board by
subsections (c) through (n).
``(2) Prohibition on delegation.--Notwithstanding any other
law, the Secretary and any other officer or employee of the
United States shall not make any delegation to the Corporate
Board, the Chairperson, the Executive Director, or the
Corporation of any power, function, or authority not expressly
authorized by this subtitle, unless the delegation is made
pursuant to an authority in law that expressly makes reference
to this section.
``(3) Reorganization act.--Notwithstanding any other law,
the President (through authorities provided under chapter 9 of
title 5, United States Code) may not authorize the transfer to
the Corporation of any power, function, or authority in addition
to powers, functions, and authorities provided by law.
``(l) Bylaws.--Notwithstanding section 1658(f)(2), the Corporate
Board shall adopt, and may from time to time amend, any bylaw that is
necessary for the proper management and functioning of the Corporation.
The Corporate Board shall not adopt any bylaw that has not been reviewed
and approved by the Secretary.
``(m) Organization.--The Corporate Board shall provide a system of
organization to fix responsibility and promote efficiency.
``(n) Personnel and Facilities of Corporation.--
``(1) Appointment and compensation of personnel.--The
Corporation may select and appoint officers, attorneys,
employees, and agents, who shall be vested with such powers and
duties as the Corporation may determine.
``(2) Use of facilities and services of the department of
agriculture.--Notwithstanding any other provision of law, to
perform the responsibilities of the Corporation under this
subtitle, the Corporation may partially or jointly utilize the
facilities of and the services of employees of the Department of
Agriculture, without cost to the Corporation.
``(3) Government employment laws.--An officer or employee of
the Corporation shall be subject to all laws of the United
States relating to governmental employment.''.
[[Page 110 STAT. 1119]]
(b) Conforming Amendment.--Section 5315 of title 5, United States
Code, is amended by adding at the end the following:
``Executive Director of the Alternative Agricultural
Research and Commercialization Corporation.''.
SEC. 724. RESEARCH AND DEVELOPMENT GRANTS, CONTRACTS, AND AGREEMENTS.
Section 1660 of the Food, Agriculture, Conservation, and Trade Act
of 1990 (7 U.S.C. 5904) is amended--
(1) by striking ``Center'' each place it appears and
inserting ``Corporation'';
(2) in subsection (c), by striking ``Board'' and inserting
``Corporate Board''; and
(3) in subsection (f), by striking ``non-Center'' and
inserting ``non-Corporation''.
SEC. 725. COMMERCIALIZATION ASSISTANCE.
Section 1661 of the Food, Agriculture, Conservation, and Trade Act
of 1990 (7 U.S.C. 5905) is amended--
(1) by striking ``Center'' each place it appears and
inserting ``Corporation'';
(2) by striking ``Board'' each place it appears and
inserting ``Corporate Board'';
(3) by striking subsection (c);
(4) by redesignating subsections (d), (e), and (f) as
subsections (c), (d), and (e), respectively; and
(5) in subsection (c) (as so redesignated)--
(A) in the subsection heading of paragraph (1), by
striking ``director'' and inserting ``executive
director''; and
(B) by striking ``Director'' each place it appears
and inserting ``Executive Director''.
SEC. 726. GENERAL RULES REGARDING THE PROVISION OF ASSISTANCE.
Section 1662 of the Food, Agriculture, Conservation, and Trade Act
of 1990 (7 U.S.C. 5906) is amended--
(1) by striking ``Center'' each place it appears (except in
subsection (b)) and inserting ``Corporation'';
(2) by striking ``Board'' each place it appears and
inserting ``Corporate Board''; and
(3) in subsection (b)--
(A) in the second sentence, by striking ``Board, a
Regional Center, or the Advisory Council'' and inserting
``Board or a Regional Center''; and
(B) by striking the third sentence.
SEC. 727. REGIONAL CENTERS.
Section 1663 of the Food, Agriculture, Conservation, and Trade Act
of 1990 (7 U.S.C. 5907) is amended--
(1) by striking ``Board'' each place it appears and
inserting ``Corporate Board'';
(2) in subsection (e)(8), by striking ``Center'' and
inserting ``Corporation''; and
(3) in subsection (f)--
(A) in paragraph (2), by striking ``in consultation
with the Advisory Council appointed under section
1661(c)''; and
[[Page 110 STAT. 1120]]
(B) by striking paragraphs (3) and (4) and inserting
the following:
``(3) Recommendation.--The Regional Director, based on the
comments of the reviewers, shall make and submit a
recommendation to the Board, which shall not be binding on the
Board.''.
SEC. 728. ALTERNATIVE AGRICULTURAL RESEARCH AND COMMERCIALIZATION
REVOLVING FUND.
Section 1664 of the Food, Agriculture, Conservation, and Trade Act
of 1990 (7 U.S.C. 5908) is amended to read as follows:
``SEC. 1664. ALTERNATIVE AGRICULTURAL RESEARCH AND COMMERCIALIZATION
REVOLVING FUND.
``(a) Establishment.--There is established in the Treasury of the
United States a revolving fund to be known as the Alternative
Agricultural Research and Commercialization Revolving Fund. The Fund
shall be available to the Corporation, without fiscal year limitation,
to carry out this subtitle.
``(b) Contents of Fund.--There shall be deposited in the Fund--
``(1) such amounts as may be appropriated or transferred to
support programs and activities of the Corporation;
``(2) payments received from any source for products,
services, or property furnished in connection with the
activities of the Corporation;
``(3) fees and royalties collected by the Corporation from
licensing or other arrangements relating to commercialization of
products developed through projects funded in whole or part by
grants, contracts, or cooperative agreements executed by the
Corporation;
``(4) proceeds from the sale of assets, loans, and equity
interests made in furtherance of the purposes of the
Corporation;
``(5) donations or contributions accepted by the Corporation
to support authorized programs and activities; and
``(6) any other funds acquired by the Corporation.
``(c) Funding Allocations.--Funding of projects and activities under
this subtitle shall be subject to the following restrictions:
``(1) Of the total amount of funds made available for a
fiscal year under this subtitle--
``(A) not more than the lesser of 15 percent or
$3,000,000 may be set aside to be used for authorized
administrative expenses of the Corporation;
``(B) not more than 1 percent may be set aside to be
used for generic studies and specific reviews of
individual proposals for financial assistance; and
``(C) except as provided in subsection (e), not less
than 84 percent shall be set aside to be awarded to
qualified applicants who file project applications with,
or respond to requests for proposals from, the
Corporation under sections 1660 and 1661.
``(2) Any funds remaining uncommitted at the end of a fiscal
year shall be credited to the Fund and added to the total
program funds available to the Corporation for the next fiscal
year.
``(d) Authorized Administrative Expenses.--For the purposes of this
section, authorized administrative expenses shall include
[[Page 110 STAT. 1121]]
all ordinary and necessary expenses, including all compensation for
personnel and consultants, expenses for computer usage, or space needs
of the Corporation and similar expenses. Funds authorized for
administrative expenses shall not be available for the acquisition of
real property.
``(e) Project Monitoring.--The Corporate Board may establish, in the
bylaws of the Corporate Board, that a percentage (which shall not exceed
1 percent) of the funds provided under subsection (c) for any
commercialization project shall be expended to ensure that project funds
are being utilized in accordance with the project agreement.
``(f) Termination of the Fund.--On expiration of the authority
provided by this subtitle, all assets (after payment of all outstanding
obligations) of the Fund shall revert to the general fund of the
Treasury.
``(g) Authorization of Appropriations; Capitalization.--
``(1) Authorization of appropriation.--There are authorized
to be appropriated to the Fund $75,000,000 for each of fiscal
years 1996 through 2002.
``(2) Capitalization.--The Executive Director may pay in as
capital of the Corporation, out of dollar receipts made
available through annual appropriations, $75,000,000 for each of
fiscal years 1996 through 2002. On the payment of an amount of
capital by the Executive Director, the Corporation shall issue
an equivalent amount of capital stock to the Secretary of the
Treasury.
``(3) Transfer.--All obligations, assets, and related rights
and responsibilities of the former Alternative Agricultural
Research and Commercialization Center established under former
section 1658 of this Act (as in effect on the day before the
date of enactment of the Federal Agriculture Improvement and
Reform Act of 1996) are transferred to the Corporation.''.
SEC. 729. PROCUREMENT PREFERENCES FOR PRODUCTS RECEIVING CORPORATION
ASSISTANCE.
Subtitle G of title XVI of the Food, Agriculture, Conservation, and
Trade Act of 1990 (7 U.S.C. 5901 et seq.) is amended by adding at the
end the following:
``SEC. 1665. <<NOTE: 7 USC 5909.>> PROCUREMENT OF ALTERNATIVE
AGRICULTURAL RESEARCH AND COMMERCIALIZATION PRODUCTS.
``(a) Definition of Executive Agency.--In this section, the term
`executive agency' has the meaning provided the term in section 4(1) of
the Office of Federal Procurement Policy Act (41 U.S.C. 403(1)).
``(b) Procurement.--To further the achievement of the purposes
specified in section 1657(b), an executive agency may, for any
procurement involving the acquisition of property, establish set-asides
and preferences for property that has been commercialized with
assistance provided under this subtitle.
``(c) Set-Asides.--Procurements solely for property may be set aside
exclusively for products developed with commercialization assistance
provided under section 1661.
``(d) Preferences.--Preferences for property developed with
assistance provided under this subtitle in procurements involving the
acquisition of property may be--
``(1) a price preference, if the procurement is solely for
property, of not greater than a percentage to be determined
[[Page 110 STAT. 1122]]
within the sole discretion of the head of the procuring agency;
or
``(2) a technical evaluation preference included as an award
factor or subfactor as determined within the sole discretion of
the head of the procuring agency.
``(e) Notice.--Each competitive solicitation or invitation for bids
selected by an executive agency for a set-aside or preference under this
section shall contain a provision notifying offerors where a list of
products eligible for the set-aside or preference may be obtained.
``(f) Eligibility.--Offerors shall receive the set-aside or
preference required under this section if, in the case of products
developed with financial assistance under--
``(1) section 1660, less than 10 years have elapsed since
the expiration of the grant, cooperative agreement, or contract;
``(2) paragraph (1) or (2) of section 1661(a), less than 5
years have elapsed since the date the loan was made or insured;
``(3) section 1661(a)(3), less than 5 years have elapsed
since the date of sale of any remaining government equity
interest in the company; or
``(4) section 1661(a)(4), less than 5 years have elapsed
since the date of the final payment on the repayable grant.''.
SEC. 730. <<NOTE: 7 USC 5902 note.>> BUSINESS PLAN AND FEASIBILITY
STUDY AND REPORT.
(a) Business Plan.--Not later than 180 days after the date of
enactment of this Act, the Alternative Agricultural Research and
Commercialization Corporation established by section 1658 of the Food,
Agriculture, Conservation, and Trade Act of 1990 shall--
(1) develop a 5-year business plan pursuant to section
1659(c)(1)(E) of the Act; and
(2) submit the plan to the Secretary of Agriculture, the
Committee on Agriculture of the House of Representatives, and
the Committee on Agriculture, Nutrition, and Forestry of the
Senate.
(b) Feasibility Study and Report.--
(1) Study.--The Secretary of Agriculture shall conduct a
study of, and prepare a report on, the continued feasibility of
the Alternative Agricultural Research and Commercialization
Corporation. In conducting the study, the Secretary shall
examine options for privatizing the Corporation and converting
the Corporation to a Government-sponsored enterprise.
(2) Report.--Not later than December 31, 2001, the Secretary
shall transmit the report required by paragraph (1) to the
Committee on Agriculture of the House of Representatives and the
Committee on Agriculture, Nutrition, and Forestry of the Senate.
Subtitle B--Amendments to the Consolidated Farm and Rural Development
Act
CHAPTER 1--GENERAL PROVISIONS
SEC. 741. WATER AND WASTE FACILITY LOANS AND GRANTS.
(a) In General.--Section 306(a) of the Consolidated Farm and Rural
Development Act (7 U.S.C. 1926(a)) is amended--
[[Page 110 STAT. 1123]]
(1) in the first sentence of paragraph (2), by striking
``$500,000,000'' and inserting ``$590,000,000'';
(2) by striking paragraph (7) and inserting the following:
``(7) Definition of rural and rural areas.--For the purpose
of water and waste disposal grants and direct and guaranteed
loans provided under paragraphs (1) and (2), the terms `rural'
and `rural area' mean a city, town, or unincorporated area that
has a population of no more than 10,000 inhabitants.'';
(3) by striking paragraphs (9), (10), and (11) and inserting
the following:
``(9) Conformity with state drinking water standards.--No
Federal funds shall be made available under this section for a
water system unless the Secretary determines that the water
system will make significant progress toward meeting the
standards established under title XIV of the Public Health
Service Act (commonly known as the `Safe Drinking Water Act')
(42 U.S.C. 300f et seq.).
``(10) Conformity with federal and state water pollution
control standards.--No Federal funds shall be made available
under this section for a water treatment discharge or waste
disposal system unless the Secretary determines that the
effluent from the system conforms with applicable Federal and
State water pollution control standards.
``(11) Rural business opportunity grants.--
``(A) In general.--The Secretary may make grants,
not to exceed $1,500,000 annually, to public bodies,
private nonprofit community development corporations or
entities, or such other agencies as the Secretary may
select to enable the recipients--
``(i) to identify and analyze business
opportunities, including opportunities in export
markets, that will use local rural economic and
human resources;
``(ii) to identify, train, and provide
technical assistance to existing or prospective
rural entrepreneurs and managers;
``(iii) to establish business support centers
and otherwise assist in the creation of new rural
businesses, the development of methods of
financing local businesses, and the enhancement of
the capacity of local individuals and entities to
engage in sound economic activities;
``(iv) to conduct regional, community, and
local economic development planning and
coordination, and leadership development; and
``(v) to establish centers for training,
technology, and trade that will provide training
to rural businesses in the utilization of
interactive communications technologies to develop
international trade opportunities and markets.
``(B) Criteria.--In awarding the grants, the
Secretary shall consider, among other criteria to be
established by the Secretary--
``(i) the extent to which the applicant
provides development services in the rural service
area of the applicant; and
[[Page 110 STAT. 1124]]
``(ii) the capability of the applicant to
accomplish the activities described in the
relevant clauses of subparagraph (A).
``(C) Coordination.--The Secretary shall ensure, to
the maximum extent practicable, that assistance provided
under this paragraph is coordinated with and delivered
in cooperation with similar services or assistance
provided to rural residents by the Cooperative State
Research, Education, and Extension Service or other
Federal agencies.
``(D) Authorization of appropriations.--There are
authorized to be appropriated to carry out this
paragraph $7,500,000 for each of fiscal years 1996
through 2002.'';
(4) by striking paragraphs (14) and (15);
(5) by redesignating paragraphs (16) through (20) as
paragraphs (14) through (18), respectively; and
(6) in paragraph (14) (as so redesignated)--
(A) by striking ``(14)(A) The'' and inserting the
following:
``(14) Rural water and wastewater technical assistance and
training programs.--
``(A) In general.--The'';
(B) in subparagraph (A)--
(i) by striking ``(i) identify'' and inserting
the following:
``(i) identify'';
(ii) by striking ``(ii) prepare'' and
inserting the following:
``(ii) prepare''; and
(iii) by striking ``(iii) improve'' and
inserting the following:
``(iii) improve'';
(C) in subparagraph (B), by striking ``(B) In'' and
inserting the following:
``(B) Selection priority.--In''; and
(D) in subparagraph (C)--
(i) by striking ``(C) Not'' and inserting the
following:
``(C) Funding.--Not''; and
(ii) by striking ``2 per centum of any funds
provided in appropriations Acts'' and inserting
``3 percent of any funds appropriated''.
(b) Conforming Amendment.--The second sentence of section 309A(a) of
the Consolidated Farm and Rural Development Act (7 U.S.C. 1929a(a)) (as
amended by section 661(c)(1)) is amended by striking ``, 306(a)(14),''.
SEC. 742. EMERGENCY COMMUNITY WATER ASSISTANCE GRANT PROGRAM FOR SMALL
COMMUNITIES.
Section 306A of the Consolidated Farm and Rural Development Act (7
U.S.C. 1926a) is amended--
(1) in subsection (e)--
(A) in paragraph (1)(A), by striking ``15,000'' and
inserting ``10,000''; and
(B) in paragraph (2), by striking ``5,000'' and
inserting ``3,000''; and
(2) by striking subsection (i) and inserting the following:
[[Page 110 STAT. 1125]]
``(i) Authorization of Appropriations.--There are authorized to be
appropriated to carry out this section $35,000,000 for each of fiscal
years 1996 through 2002.''.
SEC. 743. EMERGENCY COMMUNITY WATER ASSISTANCE GRANT PROGRAM FOR
SMALLEST COMMUNITIES.
Section 306B of the Consolidated Farm and Rural Development Act (7
U.S.C. 1926b) is repealed.
SEC. 744. AGRICULTURAL CREDIT INSURANCE FUND.
Section 309(f) of the Consolidated Farm and Rural Development Act (7
U.S.C. 1929(f)) is amended--
(1) by striking paragraph (1); and
(2) by redesignating paragraphs (2) through (6) as
paragraphs (1) through (5), respectively.
SEC. 745. RURAL DEVELOPMENT INSURANCE FUND.
Section 309A(g) of the Consolidated Farm and Rural Development Act
(7 U.S.C. 1929a(g)) is amended--
(1) by striking paragraph (1); and
(2) by redesignating paragraphs (2) through (8) as
paragraphs (1) through (7), respectively.
SEC. 746. INSURED WATERSHED AND RESOURCE CONSERVATION AND DEVELOPMENT
LOANS.
Section 310A of the Consolidated Farm and Rural Development Act (7
U.S.C. 1931) is repealed.
SEC. 747. RURAL INDUSTRIALIZATION ASSISTANCE.
(a) In General.--Section 310B of the Consolidated Farm and Rural
Development Act (7 U.S.C. 1932) is amended--
(1) in the first sentence of subsection (a)--
(A) by striking ``and'' at the end of clause (2);
and
(B) by inserting before the period the following:
``, and (4) to facilitate economic opportunity for
industries undergoing adjustment from terminated Federal
agricultural price and income support programs or
increased competition from foreign trade'';
(2) in subsection (b), by striking ``(b)(1)'' and all that
follows through ``(2) The'' and inserting the following:
``(b) Solid Waste Management Grants.--The'';
(3) in subsection (c)--
(A) by striking ``(c)(1) The'' and inserting the
following:
``(c) Rural Business Enterprise Grants.--
``(1) In general.--The'';
(B) in paragraph (1), by inserting ``(including
nonprofit entities)'' after ``private business
enterprises'';
(C) in paragraph (2)--
(i) by striking ``(2) The'' and inserting the
following:
``(2) Passenger transportation services or facilities.--
The''; and
(ii) by striking ``make grants'' and inserting
``award grants on a competitive basis''; and
(D) by adding at the end the following:
``(3) Grants to aid industries in adjusting to terminated
federal agricultural programs or increased foreign
competition.--The Secretary may make grants under this section
to facilitate economic opportunity for industries
[[Page 110 STAT. 1126]]
undergoing adjustment from terminated Federal agricultural price
and income support programs or increased competition from
foreign trade.'';
(4) by striking subsection (e) and inserting the following:
``(e) Rural Cooperative Development Grants.--
``(1) Definitions.--In this subsection:
``(A) Nonprofit institution.--The term `nonprofit
institution' means any organization or institution,
including an accredited institution of higher education,
no part of the net earnings of which inures, or may
lawfully inure, to the benefit of any private
shareholder or individual.
``(B) United states.--The term `United States' means
the several States, the District of Columbia, the
Commonwealth of Puerto Rico, the Virgin Islands, Guam,
American Samoa, and the other territories and
possessions of the United States.
``(2) Grants.--The Secretary shall make grants under this
subsection to nonprofit institutions for the purpose of enabling
the institutions to establish and operate centers for rural
cooperative development.
``(3) Goals.--The goals of a center funded under this
subsection shall be to facilitate the creation of jobs in rural
areas through the development of new rural cooperatives, value
added processing, and rural businesses.
``(4) Application.--Any nonprofit institution seeking a
grant under paragraph (2) shall submit to the Secretary an
application containing a plan for the establishment and
operation by the institution of a center or centers for
cooperative development. The Secretary may approve the
application if the plan contains the following:
``(A) A provision that substantiates that the center
will effectively serve rural areas in the United States.
``(B) A provision that the primary objective of the
center will be to improve the economic condition of
rural areas through cooperative development.
``(C) A description of the activities that the
center will carry out to accomplish the objective. The
activities may include the following:
``(i) Programs for applied research and
feasibility studies that may be useful to
individuals, cooperatives, small businesses, and
other similar entities in rural areas served by
the center.
``(ii) Programs for the collection,
interpretation, and dissemination of information
that may be useful to individuals, cooperatives,
small businesses, and other similar entities in
rural areas served by the center.
``(iii) Programs providing training and
instruction for individuals, cooperatives, small
businesses, and other similar entities in rural
areas served by the center.
``(iv) Programs providing loans and grants to
individuals, cooperatives, small businesses, and
other similar entities in rural areas served by
the center.
``(v) Programs providing technical assistance,
research services, and advisory services to
individuals, cooperatives, small businesses, and
other similar entities in rural areas served by
the center.
[[Page 110 STAT. 1127]]
``(vi) Programs providing for the coordination
of services and sharing of information among the
center.
``(D) A description of the contributions that the
activities are likely to make to the improvement of the
economic conditions of the rural areas for which the
center will provide services.
``(E) Provisions that the center, in carrying out
the activities, will seek, where appropriate, the
advice, participation, expertise, and assistance of
representatives of business, industry, educational
institutions, the Federal Government, and State and
local governments.
``(F) Provisions that the center will take all
practicable steps to develop continuing sources of
financial support for the center, particularly from
sources in the private sector.
``(G) Provisions for--
``(i) monitoring and evaluating the activities
by the nonprofit institution operating the center;
and
``(ii) accounting for money received by the
institution under this section.
``(5) Awarding grants.--Grants made under paragraph (2)
shall be made on a competitive basis. In making grants under
paragraph (2), the Secretary shall give preference to grant
applications providing for the establishment of centers for
rural cooperative development that--
``(A) demonstrate a proven track record in
administering a nationally coordinated, regionally or
State-wide operated project;
``(B) demonstrate previous expertise in providing
technical assistance in rural areas;
``(C) demonstrate the ability to assist in the
retention of businesses, facilitate the establishment of
cooperatives and new cooperative approaches, and
generate employment opportunities that will improve the
economic conditions of rural areas;
``(D) demonstrate the ability to create horizontal
linkages among businesses within and among various
sectors in rural areas of the United States and vertical
linkages to domestic and international markets;
``(E) commit to providing technical assistance and
other services to underserved and economically
distressed areas in rural areas of the United States;
and
``(F) commit to providing greater than a 25 percent
matching contribution with private funds and in-kind
contributions.
``(6) 1-year grants; authority to approve grant for 1
additional year without application.--The Secretary shall make
grants under this subsection for a period of 1 year. The
Secretary shall evaluate programs receiving assistance under
this subsection. If the Secretary determines it to be in the
best interest of the program, the Secretary may award an
additional grant to the program for the immediately succeeding
year without application for the grant.
``(7) Technical assistance to prevent excessive unemployment
or underemployment.--In carrying out this subsection, the
Secretary may provide technical assistance to alleviate or
prevent conditions of excessive unemployment,
[[Page 110 STAT. 1128]]
underemployment, outmigration, or low employment growth in
economically distressed rural areas that the Secretary
determines have a substantial need for the assistance. The
assistance may include planning and feasibility studies,
management and operational assistance, and studies evaluating
the need for development potential of projects that increase
employment and improve economic growth in the areas.
``(8) Grants to defray administrative costs.--The Secretary
may make grants to defray not to exceed 75 percent of the costs
incurred by organizations and public bodies to carry out
projects for which grants or loans are made under this
subsection. For purposes of determining the non-Federal share of
the costs, the Secretary shall consider contributions in cash
and in kind, fairly evaluated, including premises, equipment,
and services.
``(9) Authorization of appropriations.--There are authorized
to be appropriated to carry out this subsection $50,000,000 for
each of fiscal years 1996 through 2002.'';
(5) by striking subsections (f), (g), (h), and (i);
(6) by redesignating subsection (j) as subsection (f); and
(7) by adding at the end the following:
``(g) Loan Guarantees for the Purchase of Cooperative Stock.--
``(1) Definition of farmer.--In this subsection, the term
`farmer' means any farmer that the Secretary determines is a
family farmer.
``(2) Loan guarantees.--The Secretary may guarantee loans
under this section to individual farmers for the purpose of
purchasing start-up capital stock of a farmer cooperative
established for the purpose of processing an agricultural
commodity.
``(3) Eligibility.--To be eligible for a loan guarantee
under this subsection, a farmer must produce the agricultural
commodity that will be processed by the cooperative.''.
(b) Conforming Amendments.--
(1) Clause (iii) of section 307(a)(6)(B) of the Consolidated
Farm and Rural Development Act (7 U.S.C. 1927(a)(6)(B)) (as
redesignated by section 661(a)(2)) is amended by striking
``subsections (d) and (e) of section 310B'' and inserting
``section 310B(d)''.
(2) Section 232(c)(2) of the Department of Agriculture
Reorganization Act of 1994 (7 U.S.C. 6942(c)(2)) is amended--
(A) by striking ``310B(b)(2)'' and inserting
``310B(b)''; and
(B) by striking ``1932(b)(2)'' and inserting
``1932(b)''.
(3) Section 233(b) of the Department of Agriculture
Reorganization Act of 1994 (7 U.S.C. 6943(b)) is amended--
(A) by striking paragraph (2); and
(B) by redesignating paragraph (3) as paragraph (2).
SEC. 748. ADMINISTRATION.
Section 331(b)(4) of the Consolidated Farm and Rural Development Act
(7 U.S.C. 1981(b)(4)) is amended--
(1) by inserting after ``claims'' the following:
``(including debts and claims arising from loan guarantees)'';
(2) by striking ``Farmers Home Administration or'' and
inserting ``Consolidated Farm Service Agency, Rural Utilities
[[Page 110 STAT. 1129]]
Service, Rural Housing Service, Rural Business-Cooperative
Service, or a successor agency, or''; and
(3) <<NOTE: Notification.>> by inserting after ``activities
under the Housing Act of 1949.'' the following: ``In the case of
a security instrument entered into under the Rural
Electrification Act of 1936 (7 U.S.C. 901 et seq.), the
Secretary shall notify the Attorney General of the intent of the
Secretary to exercise the authority of the Secretary under this
paragraph.''.
SEC. 749. AUTHORIZATION OF APPROPRIATIONS.
(a) In General.--Section 338 of the Consolidated Farm and Rural
Development Act (7 U.S.C. 1988) is amended--
(1) by striking subsections (b), (c), (d), and (e); and
(2) by redesignating subsection (f) as subsection (b).
(b) Conforming Amendments.--
(1) The first sentence of section 309(g)(1) of the
Consolidated Farm and Rural Development Act (7 U.S.C.
1929(g)(1)) is amended by inserting after ``section 338(c)'' the
following: ``(before the amendment made by section 749(a)(1) of
the Federal Agriculture Improvement and Reform Act of 1996)''.
(2) Section 343(b) of the Consolidated Farm and Rural
Development Act (7 U.S.C. 1991(b)) is amended by striking
``338(f),'' and inserting ``338(b),''.
SEC. 750. TESTIMONY BEFORE CONGRESSIONAL COMMITTEES.
Section 345 of the Consolidated Farm and Rural Development Act (7
U.S.C. 1993) is repealed.
SEC. 751. PROHIBITION ON USE OF LOANS FOR CERTAIN PURPOSES.
Section 363 of the Consolidated Farm and Rural Development Act (7
U.S.C. 2006e) is amended by adding at the end the following: ``This
section shall not apply to a loan made or guaranteed under this title
for a utility line.''.
SEC. 752. RURAL DEVELOPMENT CERTIFIED LENDERS PROGRAM.
The Consolidated Farm and Rural Development Act is amended by
inserting after section 363 (7 U.S.C. 2006e) the following:
``SEC. 364. <<NOTE: 7 USC 2006f.>> RURAL DEVELOPMENT CERTIFIED LENDERS
PROGRAM.
``(a) Certified Lenders Program.--
``(1) In general.--The Secretary may establish a program
under which the Secretary may guarantee a loan for any rural
development program that is made by a lender certified by the
Secretary.
``(2) Certification requirements.--The Secretary may certify
a lender if the lender meets such criteria as the Secretary may
prescribe in regulations, including the ability of the lender to
properly make, service, and liquidate the guaranteed loans of
the lender.
``(3) Condition of certification.--As a condition of
certification, the Secretary may require the lender to undertake
to service the guaranteed loan using standards that are not less
stringent than generally accepted banking standards concerning
loan servicing that are used by prudent commercial or
cooperative lenders.
``(4) Guarantee.--Notwithstanding any other provision of
law, the Secretary may guarantee not more than 80 percent of a
loan made by a certified lender described in paragraph
[[Page 110 STAT. 1130]]
(1), if the borrower of the loan meets the eligibility
requirements and such other criteria for the loan guarantee that
are established by the Secretary.
``(5) Certifications.--With respect to loans to be
guaranteed, the Secretary may permit a certified lender to make
appropriate certifications (as provided in regulations issued by
the Secretary)--
``(A) relating to issues such as creditworthiness,
repayment ability, adequacy of collateral, and
feasibility of the operation; and
``(B) that the borrower is in compliance with all
requirements of law, including regulations issued by the
Secretary.
``(6) Relationship to other requirements.--This subsection
shall not affect the responsibility of the Secretary to
determine eligibility, review financial information, and
otherwise assess an application.
``(b) Preferred Certified Lenders Program.--
``(1) In general.--The Secretary may establish a preferred
certified lenders program for lenders who establish their--
``(A) knowledge of, and experience under, the
program established under subsection (a);
``(B) knowledge of the regulations concerning the
particular guaranteed loan program; and
``(C) proficiency related to the certified lender
program requirements.
``(2) Additional lending institutions.--The Secretary may
certify any lending institution as a preferred certified lender
if the institution meets such additional criteria as the
Secretary may prescribe by regulation.
``(3) Revocation of designation.--The designation of a
lender as a preferred certified lender shall be revoked if the
Secretary determines that the lender is not adhering to the
rules and regulations applicable to the program or if the loss
experiences of the preferred certified lender are greater than
other preferred certified lenders, except that the suspension or
revocation shall not affect any outstanding guarantee.
``(4) Condition of certification.--As a condition of the
preferred certification, the Secretary shall require the lender
to undertake to service the loan guaranteed by the Secretary
under this subsection using generally accepted banking standards
concerning loan servicing employed by prudent commercial or
cooperative lenders. The Secretary shall, at least annually,
monitor the performance of each preferred certified lender to
ensure that the conditions of the certification are being met.
``(5) Effect of preferred lender certification.--
Notwithstanding any other provision of law, the Secretary may--
``(A) guarantee not more than 80 percent of any
approved loan made by a preferred certified lender as
described in this subsection, if the borrower meets the
eligibility requirements and such other criteria as may
be applicable to loans guaranteed by the Secretary; and
``(B) permit preferred certified lenders to make all
decisions, with respect to loans to be guaranteed by the
Secretary under this subsection relating to
creditworthiness, the closing, monitoring, collection,
and liquidation of loans, and to accept appropriate
certifications, as provided in regulations issued by the
Secretary, that the borrower is
[[Page 110 STAT. 1131]]
in compliance with all requirements of law and
regulations issued by the Secretary.''.
SEC. 753. SYSTEM FOR DELIVERY OF CERTAIN RURAL DEVELOPMENT PROGRAMS.
(a) In General.--Section 365 of the Consolidated Farm and Rural
Development Act (7 U.S.C. 2008) is repealed.
(b) Conforming Amendments.--
(1) Section 2375 of the Food, Agriculture, Conservation, and
Trade Act of 1990 (7 U.S.C. 6613) is amended--
(A) in subsection (e), by striking ``, as defined in
section 365(b)(2) of the Consolidated Farm and Rural
Development Act,''; and
(B) by adding at the end the following:
``(g) Definition of Designated Rural Development Program.--In this
section, the term `designated rural development program' means a program
carried out under section 304(b), 306(a), or 310B(e) of the Consolidated
Farm and Rural Development Act (7 U.S.C. 1924(b), 1926(a), and 1932(e))
for which funds are available at any time during the fiscal year.''.
(2) Paragraph (2) of section 233(b) of the Department of
Agriculture Reorganization Act of 1994 (7 U.S.C. 6943(b)) (as
redesignated by section 747(b)(3)(B)) is amended by striking
``sections 365 through 369 of the Consolidated Farm and Rural
Development Act (7 U.S.C. 2008-2008d)'' and inserting ``section
369 of the Consolidated Farm and Rural Development Act (7 U.S.C.
2008d)''.
SEC. 754. STATE RURAL ECONOMIC DEVELOPMENT REVIEW PANEL.
Section 366 of the Consolidated Farm and Rural Development Act (7
U.S.C. 2008a) is repealed.
SEC. 755. LIMITED TRANSFER AUTHORITY OF LOAN AMOUNTS.
Section 367 of the Consolidated Farm and Rural Development Act (7
U.S.C. 2008b) is repealed.
SEC. 756. ALLOCATION AND TRANSFER OF LOAN GUARANTEE AUTHORITY.
Section 368 of the Consolidated Farm and Rural Development Act (7
U.S.C. 2008c) is repealed.
SEC. 757. WATER SYSTEMS FOR RURAL AND NATIVE VILLAGES IN ALASKA.
The Consolidated Farm and Rural Development Act is amended by
inserting after section 306C (7 U.S.C. 1926c) the following:
``SEC. 306D. <<NOTE: 7 USC 1926d.>> WATER SYSTEMS FOR RURAL AND NATIVE
VILLAGES IN ALASKA.
``(a) In General.--The Secretary may make grants to the State of
Alaska for the benefit of rural or Native villages in Alaska to provide
for the development and construction of water and wastewater systems to
improve the health and sanitation conditions in those villages.
``(b) Matching Funds.--To be eligible to receive a grant under
subsection (a), the State of Alaska shall provide equal matching funds
from non-Federal sources.
``(c) Consultation With the State of Alaska.--The Secretary shall
consult with the State of Alaska on a method of prioritizing
[[Page 110 STAT. 1132]]
the allocation of grants under subsection (a) according to the needs of,
and relative health and sanitation conditions in, each village.
``(d) Authorization of Appropriations.--There are authorized to be
appropriated to carry out this section $15,000,000 for each of fiscal
years 1996 through 2002.''.
SEC. 758. APPLICATION REQUIREMENTS RELATING TO WATER AND WASTE DISPOSAL
LOAN AND GRANT PROGRAMS.
Section 306(a) of the Consolidated Farm and Rural Development Act (7
U.S.C. 926(a)) <<NOTE: 7 USC 1926.>> is amended by inserting after
paragraph (4) the following:
``(5) Application requirements.--Not earlier than 60 days
before a preliminary application is filed for a loan under
paragraph (1) or a grant under paragraph (2) for a water or
waste disposal purpose, a notice of the intent of the applicant
to apply for the loan or grant shall be published in a general
circulation newspaper. The selection of engineers for a project
design shall be done by a request for proposals by the
applicant.''.
SEC. 759. NATIONAL SHEEP INDUSTRY IMPROVEMENT CENTER.
The Consolidated Farm and Rural Development Act (as amended by
section 649) is amended by adding at the end the following:
``SEC. 375. <<NOTE: Goats. 7 USC 2008j.>> NATIONAL SHEEP INDUSTRY
IMPROVEMENT CENTER.
``(a) Definitions.--In this section:
``(1) Board.--The term `Board' means the Board of Directors
established under subsection (f).
``(2) Center.--The term `Center' means the National Sheep
Industry Improvement Center established under subsection (b).
``(3) Eligible entity.--The term `eligible entity' means an
entity that promotes the betterment of the United States sheep
or goat industries and that is--
``(A) a public, private, or cooperative
organization;
``(B) an association, including a corporation not
operated for profit;
``(C) a federally recognized Indian Tribe; or
``(D) a public or quasi-public agency.
``(4) Fund.--The term `Fund' means the National Sheep
Industry Improvement Center Revolving Fund established under
subsection (e).
``(b) Establishment of Center.--The Secretary shall establish a
National Sheep Industry Improvement Center.
``(c) Purposes.--The purposes of the Center shall be to--
``(1) promote strategic development activities and
collaborative efforts by private and State entities to maximize
the impact of Federal assistance to strengthen and enhance
production and marketing of sheep or goat products in the United
States;
``(2) optimize the use of available human capital and
resources within the sheep or goat industries;
``(3) provide assistance to meet the needs of the sheep or
goat industry for infrastructure development, business
development, production, resource development, and market and
environmental research;
``(4) advance activities that empower and build the capacity
of the United States sheep or goat industry to design unique
[[Page 110 STAT. 1133]]
responses to the special needs of the sheep or goat industries
on both a regional and national basis; and
``(5) adopt flexible and innovative approaches to solving
the long-term needs of the United States sheep or goat industry.
``(d) Strategic Plan.--
``(1) In general.--The Center shall submit to the Secretary
an annual strategic plan for the delivery of financial
assistance provided by the Center.
``(2) Requirements.--A strategic plan shall identify--
``(A) goals, methods, and a benchmark for measuring
the success of carrying out the plan and how the plan
relates to the national and regional goals of the
Center;
``(B) the amount and sources of Federal and non-
Federal funds that are available for carrying out the
plan;
``(C) funding priorities;
``(D) selection criteria for funding; and
``(E) a method of distributing funding.
``(e) Revolving Fund.--
``(1) Establishment.--There is established in the Treasury
the National Sheep Industry Improvement Center Revolving Fund.
The Fund shall be available to the Center, without fiscal year
limitation, to carry out the authorized programs and activities
of the Center under this section.
``(2) Contents of fund.--There shall be deposited in the
Fund--
``(A) such amounts as may be appropriated,
transferred, or otherwise made available to support
programs and activities of the Center;
``(B) payments received from any source for
products, services, or property furnished in connection
with the activities of the Center;
``(C) fees and royalties collected by the Center
from licensing or other arrangements relating to
commercialization of products developed through projects
funded, in whole or part, by grants, contracts, or
cooperative agreements executed by the Center;
``(D) proceeds from the sale of assets, loans, and
equity interests made in furtherance of the purposes of
the Center;
``(E) donations or contributions accepted by the
Center to support authorized programs and activities;
and
``(F) any other funds acquired by the Center.
``(3) Use of fund.--
``(A) In general.--The Center may use amounts in the
Fund to make grants and loans to eligible entities in
accordance with a strategic plan submitted under
subsection (d).
``(B) Continued existence.--The Center shall manage
the Fund in a manner that ensures that sufficient
amounts are available in the Fund to carry out
subsection (c).
``(C) Diverse area.--The Center shall, to the
maximum extent practicable, use the Fund to serve broad
geographic areas and regions of diverse production.
``(D) Variety of loans and grants.--The Center
shall, to the maximum extent practicable, use the Fund
to provide a variety of grants and intermediate- and
long-term loans.
[[Page 110 STAT. 1134]]
``(E) Administration.--The Center may not use more
than 3 percent of the amounts in the Fund for a fiscal
year for the administration of the Center.
``(F) Influencing legislation.--None of the amounts
in the Fund may be used to influence legislation.
``(G) Accounting.--To be eligible to receive amounts
from the Fund, an entity must agree to account for the
amounts using generally accepted accounting principles.
``(H) Uses of fund.--The Center may use amounts in
the Fund to--
``(i) participate with Federal and State
agencies in financing activities that are in
accordance with a strategic plan submitted under
subsection (d), including participation with
several States in a regional effort;
``(ii) participate with other public and
private funding sources in financing activities
that are in accordance with the strategic plan,
including participation in a regional effort;
``(iii) provide security for, or make
principal or interest payments on, revenue or
general obligation bonds issued by a State, if the
proceeds from the sale of the bonds are deposited
in the Fund;
``(iv) accrue interest;
``(v) guarantee or purchase insurance for
local obligations to improve credit market access
or reduce interest rates for a project that is in
accordance with the strategic plan; or
``(vi) sell assets, loans, and equity
interests acquired in connection with the
financing of projects funded by the Center.
``(4) Loans.--
``(A) Rate.--A loan from the Fund may be made at an
interest rate that is below the market rate or may be
interest free.
``(B) Term.--The term of a loan may not exceed the
shorter of--
``(i) the useful life of the activity
financed; or
``(ii) 40 years.
``(C) Source of repayment.--The Center may not make
a loan from the Fund unless the recipient establishes an
assured source of repayment.
``(D) Proceeds.--All payments of principal and
interest on a loan made from the Fund shall be deposited
into the Fund.
``(5) Maintenance of effort.--The Center shall use the Fund
only to supplement and not to supplant Federal, State, and
private funds expended for rural development.
``(6) Funding.--
``(A) Deposit of funds.--All Federal and non-Federal
amounts received by the Center to carry out this section
shall be deposited in the Fund.
``(B) Mandatory funds.--Out of any moneys in the
Treasury not otherwise appropriated, the Secretary of
the Treasury shall provide to the Center not to exceed
$20,000,000 to carry out this section.
[[Page 110 STAT. 1135]]
``(C) Additional funds.--In addition to any funds
provided under subparagraph (B), there is authorized to
be appropriated $30,000,000 to carry out this section.
``(D) Privatization.--No additional Federal funds
shall be used to carry out this section beginning on the
earlier of--
``(i) the date that is 10 years after the date
of enactment of this section; or
``(ii) the day after a total of $50,000,000
has been made available under subparagraphs (B)
and (C) to carry out this section.
``(f) Board of Directors.--
``(1) In general.--The management of the Center shall be
vested in a Board of Directors.
``(2) Powers.--The Board shall--
``(A) be responsible for the general supervision of
the Center;
``(B) review any grant, loan, contract, or
cooperative agreement to be made or entered into by the
Center and any financial assistance provided to the
Center;
``(C) make the final decision, by majority vote, on
whether and how to provide assistance to an applicant;
and
``(D) develop and establish a budget plan and a
long-term operating plan to carry out the goals of the
Center.
``(3) Composition.--The Board shall be composed of--
``(A) 7 voting members, of whom--
``(i) 4 members shall be active producers of
sheep or goats in the United States;
``(ii) 2 members shall have expertise in
finance and management; and
``(iii) 1 member shall have expertise in lamb,
wool, goat, or goat product marketing; and
``(B) 2 nonvoting members, of whom--
``(i) 1 member shall be the Under Secretary of
Agriculture for Rural Development; and
``(ii) 1 member shall be the Under Secretary
of Agriculture for Research, Education, and
Economics.
``(4) Nomination.--
``(A) Nominating body.--The Secretary shall appoint
the voting members of the Board from nominations
submitted by organizations described in subparagraph
(B).
``(B) National organizations.--A national
organization is described in this subparagraph if the
organization--
``(i) consists primarily of active sheep or
goat producers in the United States; and
``(ii) has as the primary interest of the
organization the production of sheep or goats in
the United States.
``(5) Term of office.--
``(A) In general.--Subject to subparagraph (B), the
term of office of a voting member of the Board shall be
3 years.
``(B) Staggered initial terms.--The initial voting
members of the Board (other than the chairperson of the
initially established Board) shall serve for staggered
terms of 1, 2, and 3 years, as determined by the
Secretary.
[[Page 110 STAT. 1136]]
``(C) Reelection.--A voting member may be reelected
for not more than 1 additional term.
``(6) Vacancy.--
``(A) In general.--A vacancy on the Board shall be
filled in the same manner as the original Board.
``(B) Reelection.--A member elected to fill a
vacancy for an unexpired term may be reelected for 1
full term.
``(7) Chairperson.--
``(A) In general.--The Board shall select a
chairperson from among the voting members of the Board.
``(B) Term.--The term of office of the chairperson
shall be 2 years.
``(8) Annual meeting.--
``(A) In general.--The Board shall meet not less
than once each fiscal year at the call of the
chairperson or at the request of the executive director
appointed under subsection (g)(1).
``(B) Location.--The location of a meeting of the
Board shall be established by the Board.
``(9) Voting.--
``(A) Quorum.--A quorum of the Board shall consist
of a majority of the voting members.
``(B) Majority vote.--A decision of the Board shall
be made by a majority of the voting members of the
Board.
``(10) Conflicts of interest.--
``(A) In general.--Except as provided in
subparagraph (D), a member of the Board shall not vote
on any matter respecting any application, contract,
claim, or other particular matter pending before the
Board in which, to the knowledge of the member, an
interest is held by--
``(i) the member;
``(ii) any spouse of the member;
``(iii) any child of the member;
``(iv) any partner of the member;
``(v) any organization in which the member is
serving as an officer, director, trustee, partner,
or employee; or
``(vi) any person with whom the member is
negotiating or has any arrangement concerning
prospective employment or with whom the member has
a financial interest.
``(B) Removal.--Any action by a member of the Board
that violates subparagraph (A) shall be cause for
removal from the Board.
``(C) Validity of action.--An action by a member of
the Board that violates subparagraph (A) shall not
impair or otherwise affect the validity of any otherwise
lawful action by the Board.
``(D) Disclosure.--
``(i) In general.--If a member of the Board
makes a full disclosure of an interest and, prior
to any participation by the member, the Board
determines, by majority vote, that the interest is
too remote or too inconsequential to affect the
integrity of any participation by the member, the
member may participate in the matter relating to
the interest, except as provided in subparagraph
(E)(iii).
[[Page 110 STAT. 1137]]
``(ii) Vote.--A member that discloses an
interest under clause (i) shall not vote on a
determination of whether the member may
participate in the matter relating to the
interest.
``(E) Remands.--
``(i) In general.--The Secretary may vacate
and remand to the Board for reconsideration any
decision made pursuant to subsection (e)(3)(H) if
the Secretary determines that there has been a
violation of this paragraph or any conflict of
interest provision of the bylaws of the Board with
respect to the decision.
``(ii) Reasons.--In the case of any violation
and remand of a funding decision to the Board
under clause (i), the Secretary shall inform the
Board of the reasons for the remand.
``(iii) Conflicted members not to vote on
remanded decisions.--If a decision with respect to
a matter is remanded to the Board by reason of a
conflict of interest faced by a Board member, the
member may not participate in any subsequent
decision with respect to the matter.
``(11) Compensation.--
``(A) In general.--A member of the Board shall not
receive any compensation by reason of service on the
Board.
``(B) Expenses.--A member of the Board shall be
reimbursed for travel, subsistence, and other necessary
expenses incurred by the member in the performance of a
duty of the member.
``(12) Bylaws.--The Board shall adopt, and may from time to
time amend, any bylaw that is necessary for the proper
management and functioning of the Center.
``(13) Public hearings.--Not later than 1 year after the
date of enactment of this section, the Board shall hold public
hearings on policy objectives of the program established under
this section.
``(14) Organizational system.--The Board shall provide a
system of organization to fix responsibility and promote
efficiency in carrying out the functions of the Board.
``(15) Use of department of agriculture.--The Board may,
with the consent of the Secretary, utilize the facilities of and
the services of employees of the Department of Agriculture,
without cost to the Center.
``(g) Officers and Employees.--
``(1) Executive director.--
``(A) In general.--The Board shall appoint an
executive director to be the chief executive officer of
the Center.
``(B) Tenure.--The executive director shall serve at
the pleasure of the Board.
``(C) Compensation.--Compensation for the executive
director shall be established by the Board.
``(2) Other officers and employees.--The Board may select
and appoint officers, attorneys, employees, and agents who shall
be vested with such powers and duties as the Board may
determine.
``(3) Delegation.--The Board may, by resolution, delegate to
the chairperson, the executive director, or any other officer or
employee any function, power, or duty of the Board other
[[Page 110 STAT. 1138]]
than voting on a grant, loan, contract, agreement, budget, or
annual strategic plan.
``(h) Consultation.--To carry out this section, the Board may
consult with--
``(1) State departments of agriculture;
``(2) Federal departments and agencies;
``(3) nonprofit development corporations;
``(4) colleges and universities;
``(5) banking and other credit-related agencies;
``(6) agriculture and agribusiness organizations; and
``(7) regional planning and development organizations.
``(i) Oversight.--
``(1) In general.--The Secretary shall review and monitor
compliance by the Board and the Center with this section.
``(2) Sanctions.--If, following notice and opportunity for a
hearing, the Secretary finds that the Board or the Center is not
in compliance with this section, the Secretary may--
``(A) cease making deposits to the Fund;
``(B) suspend the authority of the Center to
withdraw funds from the Fund; or
``(C) impose other appropriate sanctions, including
recoupment of money improperly expended for purposes
prohibited or not authorized by this Act and
disqualification from receipt of financial assistance
under this section.
``(3) Rescission of sanctions.--The Secretary shall rescind
sanctions imposed under paragraph (2) on a finding by the
Secretary that there is no longer any failure by the Board or
the Center to comply with this section or that the noncompliance
will be promptly corrected.''.
SEC. 759A. COOPERATIVE AGREEMENTS.
Section 607(b) of the Rural Development Act of 1972 (7 U.S.C.
2204b(b)) is amended by striking paragraph (4) and inserting the
following:
``(4) Cooperative agreements.--
``(A) In general.--Notwithstanding chapter 63 of
title 31, United States Code, the Secretary may enter
into cooperative agreements with other Federal agencies,
State and local governments, and any other organization
or individual to improve the coordination and
effectiveness of Federal programs, services, and actions
affecting rural areas, including the establishment and
financing of interagency groups, if the Secretary
determines that the objectives of the agreement will
serve the mutual interest of the parties in rural
development activities.
``(B) Cooperators.--Each cooperator, including each
Federal agency, to the extent that funds are otherwise
available, may participate in any cooperative agreement
or working group established pursuant to this paragraph
by contributing funds or other resources to the
Secretary to carry out the agreement or functions of the
group.''.
SEC. 759B. ELIGIBILITY FOR GRANTS TO BROADCASTING SYSTEMS.
Section 310B(f) of the Consolidated Farm and Rural Development Act
(7 U.S.C. 1932(f)) (as redesignated by section 747(a)(6)) is amended by
striking ``Systems.--The'' and inserting ``Systems.--
``(1) Definition of statewide.--In this subsection, the term
`statewide' means having a coverage area of not less
[[Page 110 STAT. 1139]]
than 90 percent of the population of a State and not less than
80 percent of the rural land area of the State (as determined by
the Secretary).
``(2) Grants.--The''.
CHAPTER 2--RURAL COMMUNITY ADVANCEMENT PROGRAM
SEC. 761. RURAL COMMUNITY ADVANCEMENT PROGRAM.
The Consolidated Farm and Rural Development Act (7 U.S.C. 1921 et
seq.) is amended by adding at the end the following:
``Subtitle E--Rural Community Advancement Program
``SEC. 381A. <<NOTE: 7 USC 2009.>> DEFINITIONS.
``In this subtitle:
``(1) Rural and rural area.--The terms `rural' and `rural
area' mean, subject to section 306(a)(7), a city, town, or
unincorporated area that has a population of 50,000 inhabitants
or less, other than an urbanized area immediately adjacent to a
city, town, or unincorporated area that has a population in
excess of 50,000 inhabitants.
``(2) State.--The term `State' means each of the 50 States,
the District of Columbia, the Commonwealth of Puerto Rico, Guam,
the Virgin Islands of the United States, American Samoa, the
Commonwealth of the Northern Mariana Islands, the Trust
Territory of the Pacific Islands, and the Federated States of
Micronesia.
``(3) State director.--The term `State director' means, with
respect to a State, the Director of the Rural Economic and
Community Development State Office.
``SEC. 381B. <<NOTE: 7 USC 2009a.>> ESTABLISHMENT.
``The Secretary shall establish a rural community advancement
program to provide grants, loans, loan guarantees, and other assistance
to meet the rural development needs of local communities in States and
federally recognized Indian tribes.
``SEC. 381C. <<NOTE: 7 USC 2009b.>> NATIONAL OBJECTIVES.
``The national objectives of the program established under this
subtitle shall be to--
``(1) promote strategic development activities and
collaborative efforts by State and local communities, and
federally recognized Indian tribes, to maximize the impact of
Federal assistance;
``(2) optimize the use of resources;
``(3) provide assistance in a manner that reflects the
complexity of rural needs, including the needs for business
development, health care, education, infrastructure, cultural
resources, the environment, and housing;
``(4) advance activities that empower, and build the
capacity of, State and local communities to design unique
responses to the special needs of the State and local
communities, and federally recognized Indian tribes, for rural
development assistance; and
[[Page 110 STAT. 1140]]
``(5) adopt flexible and innovative approaches to solving
rural development problems.
``SEC. 381D. <<NOTE: 7 USC 2009c.>> STRATEGIC PLANS.
``(a) In General.--The Secretary shall direct each of the Directors
of Rural Economic and Community Development State Offices to prepare a
strategic plan--
``(1) for each State for the delivery of assistance under
this subtitle in the State; and
``(2) for each federally recognized Indian tribe for the
delivery of assistance under this subtitle to the Indian tribe.
``(b) Assistance.--
``(1) In general.--Financial assistance for rural
development provided under this subtitle for a State or a
federally recognized Indian tribe shall be used only for orderly
community development that is consistent with the strategic plan
of the State or Indian tribe.
``(2) Rural area.--Assistance under this subtitle may only
be provided in a rural area.
``(3) Small communities.--In carrying out this subtitle in a
State, the Secretary shall give priority to communities with the
smallest populations and lowest per capita income.
``(c) Review.--The Secretary shall review the strategic plan of each
State and federally recognized Indian tribe not later than 60 days after
receiving the plan, and at least once every 5 years thereafter.
``(d) Contents.--A strategic plan of a State or federally recognized
Indian tribe under this section shall be a plan that--
``(1) coordinates economic, human, and community development
plans and related activities proposed for an affected area;
``(2) provides that the State or federally recognized Indian
tribe, as appropriate, and an affected community (including
local institutions and organizations that have contributed to
the planning process) shall act as full partners in the process
of developing and implementing the plan;
``(3) identifies goals, methods, and benchmarks for
measuring the success of carrying out the plan and how the plan
relates to local or regional ecosystems;
``(4) in the case of a State, provides for the involvement,
in the preparation of the plan, of State, local, private, and
public persons, State rural development councils, federally
recognized Indian tribes in the State, and community-based
organizations;
``(5) identifies the amount and source of Federal and non-
Federal resources that are available for carrying out the plan;
and
``(6) includes such other information as may be required by
the Secretary.
``SEC. 381E. <<NOTE: 7 USC 2009d.>> RURAL DEVELOPMENT TRUST FUND.
``(a) Establishment.--There is established in the Treasury of the
United States a trust fund which shall be known as the Rural Development
Trust Fund (in this subtitle referred to as the `Trust Fund').
``(b) Accounts.--There are established in the Trust Fund the
following accounts:
``(1) The rural community facilities account.
``(2) The rural utilities account.
[[Page 110 STAT. 1141]]
``(3) The rural business and cooperative development
account.
``(4) The national reserve account.
``(5) The federally recognized Indian tribe account.
``(c) Deposits Into Accounts.--Notwithstanding any other provision
of law, each fiscal year--
``(1) all amounts made available to carry out the
authorities described in subsection (d)(1) for the fiscal year
shall be deposited into the rural community facilities account
of the Trust Fund;
``(2) all amounts made available to carry out the
authorities described in subsection (d)(2) for the fiscal year
shall be deposited into the rural utilities account of the Trust
Fund; and
``(3) all amounts made available to carry out the
authorities described in subsection (d)(3) for the fiscal year
shall be deposited into the rural business and cooperative
development account of the Trust Fund.
``(d) Function Categories.--The function categories described in
this subsection are the following:
``(1) Rural community facilities.--The rural community
development category consists of all amounts made available
for--
``(A) community facility direct and guaranteed loans
under section 306(a)(1); or
``(B) community facility grants under section
306(a)(19).
``(2) Rural utilities.--The rural utilities category
consists of all amounts made available for--
``(A) water or waste disposal grants or direct or
guaranteed loans under paragraph (1) or (2) of section
306(a);
``(B) rural water or wastewater technical assistance
and training grants under section 306(a)(14);
``(C) emergency community water assistance grants
under section 306A; or
``(D) solid waste management grants under section
310B(b).
``(3) Rural business and cooperative development.--The rural
business and cooperative development category consists of all
amounts made available for--
``(A) rural business opportunity grants under
section 306(a)(11)(A);
``(B) business and industry guaranteed loans under
section 310B(a)(1); or
``(C) rural business enterprise grants or rural
educational network grants under section 310B(c).
``(e) National Reserve Account.--
``(1) Transfers into account.--
``(A) Initial transfer.--Each fiscal year, the
Secretary shall transfer to the national reserve account
of the Trust Fund from each account specified in
subsection (c) not more than the applicable percentage
of the amount deposited in each such account for the
fiscal year under subsection (c).
``(B) Repooling of unobligated funds allocated among
the states.--Not earlier than July 15 of each fiscal
year, the Secretary shall transfer to the national
reserve account from each account specified in
subsection (c) any amount in the account that is
allocated for any
[[Page 110 STAT. 1142]]
State, and has not been obligated by the State director
or obligated for specific approved projects in the
State.
``(2) Use.--The Secretary may use amounts in the national
reserve account of the Trust Fund, pursuant to any authority
described in subsection (d)--
``(A) in the case of a fiscal year other than fiscal
year 2001 or 2002--
``(i) to meet situations of exceptional need;
``(ii) to meet emergency situations; or
``(iii) to provide funds to entities whose
applications for funds provided under this
subtitle have been approved and who have not
received funds sufficient to meet the needs of the
projects described in the applications; or
``(B) in the case of fiscal years 2001 and 2002--
``(i) to meet situations of exceptional need;
or
``(ii) to meet emergency situations.
``(3) Applicable percentage defined.--In paragraph (1), the
term `applicable percentage' means, with respect to a fiscal
year--
``(A) 15 percent for fiscal year 1997;
``(B) 12.5 percent for fiscal year 1998;
``(C) 10 percent for fiscal year 1999;
``(D) 7.5 percent for fiscal year 2000;
``(E) 5 percent for fiscal year 2001; and
``(F) 5 percent for fiscal year 2002.
``(f) Federally Recognized Indian Tribe Account.--
``(1) Transfers into account.--Each fiscal year, the
Secretary shall transfer to the federally recognized Indian
tribe account of the Trust Fund 3 percent of the amount
deposited into the Trust Fund for the fiscal year under
subsection (d).
``(2) Use of funds.--The Secretary shall make available to
federally recognized Indian tribes the amounts in the federally
recognized Indian tribe account for use pursuant to any
authority described in subsection (d).
``(g) Allocation Among States.--The Secretary shall allocate the
amounts in each account specified in subsection (c) among the States in
a fair, reasonable, and appropriate manner that takes into consideration
rural population, levels of income, unemployment, and other relevant
factors, as determined by the Secretary.
``(h) Availability of Funds Allocated for States.--The Secretary
shall make available to each State the total amount allocated for the
State under subsection (g) of this section that remains after applying
section 381G.
``SEC. 381F. <<NOTE: 7 USC 2009e.>> TRANSFERS OF FUNDS.
``(a) General Authority.--Subject to subsection (b) of this section,
the State Director of any State may, during any fiscal year, transfer
from each account specified in section 381E(c) a total of not more than
25 percent of the amount in the account that is allocated for the State
for the fiscal year to any other account in which amounts are allocated
for the State for the fiscal year.
``(b) Limitation.--Except as provided in subsection (c) of this
section, a transfer otherwise authorized by subsection (a) of this
section to be made during a fiscal year may not be made to the extent
that the sum of the amount to be transferred and all amounts
[[Page 110 STAT. 1143]]
so transferred by State directors under subsection (a) of this section
during the fiscal year exceeds 10 percent of the total amount made
available to carry out the authorities described in section 381E(d) for
the fiscal year.
``(c) Exceptions.--Subsections (a) and (b) shall not apply to a
transfer of funds by a State director if the State director certifies to
the Secretary that--
``(1) there is an approved application for a project in the
function category to which the funds are to be transferred but
funds are not available for the project in the function
category; and
``(2)(A) there is no such approved application in the
function category from which the funds are to be transferred; or
``(B) the community that would benefit from the project has
a smaller population and a lesser per capita income than any
community that would benefit from a project in the function
category from which the funds are to be transferred.
``SEC. 381G. <<NOTE: 7 USC 2009f.>> GRANTS TO STATES.
``(a) Simple Grants.--
``(1) Mandatory grant.--The Secretary shall make a grant to
any eligible State for any fiscal year for which the State
requests a grant under this section in an amount equal to 5
percent of the total amount allocated for the State under
section 381E(g).
``(2) Permissive grant.--Before July 15 of each fiscal year,
the Secretary may make a grant to any State to defray the cost
of any subsidy associated with a guarantee provided by an
eligible public entity of the State under section 381H in an
amount that does not exceed 5 percent of the total amount
allocated for the State under section 381E(g).
``(3) Source of funds.--The Secretary shall make grants to a
State under paragraphs (1) and (2) from amounts allocated for
the State in the accounts specified in section 381E(c), by
reducing each such allocated amount by the same percentage.
``(b) Matching Grants.--
``(1) In general.--Subject to paragraph (2), the Secretary
shall make a grant to any eligible State for any fiscal year for
which the State requests a grant under this section in an amount
equal to 5 percent of the amount allocated for the State for the
fiscal year under section 381E(h).
``(2) Eligibility.--A State shall be eligible for a grant
under paragraph (1) if the State makes commitments to the
Secretary to--
``(A) expend from non-Federal sources in accordance
with subsection (c) an amount that is not less than 200
percent of the amount of the grant; and
``(B) maintain the amounts paid to the State under
this subsection and the amount referred to in
subparagraph (A) in an account separate from all other
State funds until expended in accordance with subsection
(c).
``(3) Source of funds.--If the Secretary makes a grant under
paragraph (1) before July 15 of the fiscal year, the grant shall
be made from amounts allocated for the State in the accounts
specified in section 381E(c) for the fiscal year, by reducing
each allocated amount by the same percentage.
[[Page 110 STAT. 1144]]
``(c) Use of Funds.--A State to which funds are provided under this
section shall use the funds in rural areas for any activity authorized
under the authorities described in section 381E(d) in accordance with
the State strategic plan referred to in section 381D.
``(d) Maintenance of Effort.--The State shall provide assurances to
the Secretary that funds provided to the State under this section will
be used only to supplement, not to supplant, the amount of Federal,
State, and local funds otherwise expended for rural development
assistance in the State.
``(e) Appeals.--The Secretary shall provide to a State an
opportunity to appeal any action taken with respect to the State under
this section.
``(f) Administrative Costs.--Federal funds shall not be used for any
administrative costs incurred by a State in carrying out this subtitle.
``(g) Expenditure of Funds by State.--
``(1) In general.--Payments to a State from a grant under
this section for a fiscal year shall be obligated by the State
in the fiscal year or in the succeeding fiscal year. A State
shall obligate funds under this section to provide assistance to
rural areas.
``(2) Failure to obligate.--If a State fails to obligate
payments in accordance with paragraph (1), the Secretary shall
make an equal reduction in the amount of payments provided to
the State under this section for the immediately succeeding
fiscal year.
``(3) Noncompliance.--
``(A) Review.--The Secretary shall review and
monitor State compliance with this section.
``(B) Penalty.--If the Secretary finds that there
has been misuse of grant funds provided under this
section, or noncompliance with any of the terms and
conditions of a grant, after reasonable notice and
opportunity for a hearing--
``(i) the Secretary shall notify the State of
the finding; and
``(ii) no further payments to the State shall
be made with respect to the programs funded under
this section until the Secretary is satisfied that
there is no longer any failure to comply or that
the noncompliance will be promptly corrected.
``(C) Other sanctions.--In the case of a finding of
noncompliance made pursuant to subparagraph (B), the
Secretary may, in addition to, or in lieu of, imposing
the sanctions described in subparagraph (B), impose
other appropriate sanctions, including recoupment of
money improperly expended for purposes prohibited or not
authorized by this section and disqualification from the
receipt of financial assistance under this section.
``(h) No Entitlement to Contract, Grant, or Assistance.--Nothing in
this subtitle--
``(1) entitles any person to assistance or a contract or
grant; or
``(2) limits the right of a State to impose additional
limitations or conditions on assistance or a contract or grant
under this section.
[[Page 110 STAT. 1145]]
``SEC. 381H. <<NOTE: 7 USC 2009g.>> GUARANTEE AND COMMITMENT TO
GUARANTEE LOANS.
``(a) Definition of Eligible Public Entity.--In this section, the
term `eligible public entity' means any unit of general local
government.
``(b) Guarantee and Commitment.--The Secretary, on such terms and
conditions as the Secretary may prescribe, may guarantee and make
commitments to guarantee notes or other obligations issued by eligible
public entities, or by public agencies designated by the eligible public
entities, for the purposes of financing rural development activities
authorized and funded under section 381G.
``(c) Limitation.--The Secretary may not make a guarantee or
commitment to guarantee with respect to a note or other obligation if
the total amount of outstanding notes or obligations guaranteed under
this section (excluding any amount repaid under the contract entered
into under subsection (e)(1)(A)) for issuers in the State would exceed
an amount equal to 5 times the sum of the total amount of grants made to
the State under section 381G.
``(d) Payment of Principal, Interest, and Costs.--Notwithstanding
any other provision of this subtitle, a State to which a grant is made
under section 381G may use the grant (including program income derived
from the grant) to pay principal and interest due (including such
servicing, underwriting, or other costs as may be specified in
regulations of the Secretary) on any note or other obligation guaranteed
under this section.
``(e) Repayment Contract; Security.--
``(1) In general.--To ensure the repayment of notes or other
obligations and charges incurred under this section and as a
condition for receiving the guarantees, the Secretary shall
require the issuer to--
``(A) enter into a contract, in a form acceptable to
the Secretary, for repayment of notes or other
obligations guaranteed under this section;
``(B) pledge any grant for which the issuer may
become eligible under this subtitle; and
``(C) furnish, at the discretion of the Secretary,
such other security as may be considered appropriate by
the Secretary in making the guarantees.
``(2) Security.--To assist in ensuring the repayment of
notes or other obligations and charges incurred under this
section, a State shall pledge any grant for which the State may
become eligible under this subtitle as security for notes or
other obligations and charges issued under this section by any
eligible public entity in the State.
``(f) Pledged Grants for Repayments.--Notwithstanding any other
provision of this subtitle, the Secretary may apply grants pledged
pursuant to paragraphs (1)(B) and (2) of subsection (e) to any
repayments due the United States as a result of the guarantees.
``(g) Outstanding Obligations.--The total amount of outstanding
obligations guaranteed on a cumulative basis by the Secretary pursuant
to subsection (b) shall not at any time exceed such amount as may be
authorized to be appropriated for such purpose for any fiscal year.
``(h) Purchase of Guaranteed Obligations by Federal Financing
Bank.--Notes or other obligations guaranteed under this section may not
be purchased by the Federal Financing Bank.
[[Page 110 STAT. 1146]]
``(i) Full Faith and Credit.--The full faith and credit of the
United States is pledged to the payment of all guarantees made under
this section. Any such guarantee made by the Secretary shall be
conclusive evidence of the eligibility of the obligations for the
guarantee with respect to principal and interest. The validity of the
guarantee shall be incontestable in the hands of a holder of the
guaranteed obligations.
``SEC. 381I. <<NOTE: 7 USC 2009h.>> LOCAL INVOLVEMENT.
``An application for assistance under this subtitle shall include
evidence of significant community support for the project for which the
assistance is requested. In the case of assistance for a community
facilities or infrastructure project, the evidence shall be in the form
of a certification of support for the project from each affected general
purpose local government.
``SEC. 381J. <<NOTE: 7 USC 2009i.>> INTERSTATE COLLABORATION.
``The Secretary shall permit the establishment of voluntary pooling
arrangements among States, and regional fund-sharing agreements, to
carry out projects receiving assistance under this subtitle.
``SEC. 381K. <<NOTE: 7 USC 2009j.>> ANNUAL REPORT.
``(a) In General.--The Secretary, in collaboration with State,
local, public, and private entities, State rural development councils,
and community-based organizations, shall prepare an annual report that
contains evaluations, assessments, and performance outcomes concerning
the rural community advancement programs carried out under this
subtitle.
``(b) Submission.--Not later than March 1 of each year, the
Secretary shall--
``(1) submit the report required by subsection (a) to
Congress and the chief executives of the States participating in
the program established under this subtitle; and
``(2) make the report available to State and local
participants.
``SEC. 381L. <<NOTE: 7 USC 2009k.>> RURAL DEVELOPMENT INTERAGENCY
WORKING GROUP.
``(a) In General.--The Secretary shall provide leadership within the
Executive branch for, and assume responsibility for, establishing an
interagency working group chaired by the Secretary.
``(b) Duties.--The working group shall establish policy for,
coordinate, make recommendations with respect to, and evaluate the
performance of, all Federal rural development efforts.
``SEC. 381M. <<NOTE: 7 USC 2009l.>> DUTIES OF RURAL ECONOMIC AND
COMMUNITY DEVELOPMENT STATE OFFICES.
``In carrying out this subtitle, the Director of a Rural Economic
and Community Development State Office shall--
``(1) to the maximum extent practicable, ensure that the
State strategic plan referred to in section 381D is implemented;
``(2) coordinate community development objectives within the
State;
``(3) establish links between local, State, and field office
program administrators of the Department of Agriculture;
``(4) ensure that recipient communities comply with
applicable Federal and State laws and requirements; and
[[Page 110 STAT. 1147]]
``(5) integrate State development programs with assistance
under this subtitle.
``SEC. 381N. <<NOTE: 7 USC 2009m.>> ELECTRONIC TRANSFER.
``The Secretary shall transfer funds in accordance with this
subtitle through electronic transfer as soon as practicable after the
date of enactment of this subtitle.
``SEC. 381O. <<NOTE: 7 USC 2009n.>> RURAL VENTURE CAPITAL DEMONSTRATION
PROGRAM.
``(a) In General.--The Secretary may designate for each fiscal year
up to 10 community development venture capital organizations to
demonstrate the utility of guarantees to attract increased private
investment in rural private business enterprises.
``(b) Rural Business Investment Pool.--
``(1) Establishment.--To be eligible to participate in the
demonstration program, an organization referred to in subsection
(a) shall establish a rural business private investment pool
(referred to in this subsection as a `pool') for the purpose of
making equity investments in rural private business enterprises.
``(2) Guarantee.--From amounts in the national reserve
account of the Trust Fund, the Secretary shall guarantee the
funds in a pool against loss, except that the guarantee shall
not exceed an amount equal to 30 percent of the total funds in
the pool.
``(3) Amount.--The Secretary shall issue guarantees covering
not more than $15,000,000 of contingent liabilities for each of
fiscal years 1996 through 2002.
``(4) Term.--The term of a guarantee provided under this
subsection shall not exceed 10 years.
``(5) Submission of plan.--To be eligible to participate in
the demonstration program, an organization referred to in
subsection (a) shall submit a plan that describes--
``(A) potential sources and uses of the pool to be
established by the organization;
``(B) the utility of the guarantee authority in
attracting capital for the pool; and
``(C) on selection, mechanisms for notifying State,
local, and private nonprofit business development
organizations and businesses of the existence of the
pool.
``(6) Competition.--
``(A) In general.--The Secretary shall conduct a
competition for the designation and establishment of
pools.
``(B) Priority.--In conducting the competition, the
Secretary shall give priority to organizations that--
``(i) have a demonstrated record of
performance, or have a board and executive
director with experience, in venture capital,
small business equity investment, or community
development finance;
``(ii) propose to serve low-income
communities;
``(iii) propose to maintain an average
investment of not more than $500,000 from the pool
of the organization;
``(iv) invest funds statewide or in a
multicounty region; and
``(v) propose to target job opportunities
resulting from the investments primarily to
economically dis
[[Page 110 STAT. 1148]]
advantaged individuals, as determined by the
Secretary.
``(C) Geographic diversity.--To the extent
practicable, the Secretary shall designate organizations
in diverse geographic areas.''.
SEC. 762. <<NOTE: 7 USC 2204b note.>> SIMPLIFIED, UNIFORM APPLICATION
FOR ASSISTANCE FROM ALL FEDERAL RURAL DEVELOPMENT PROGRAMS.
Not later than 1 year after the date of enactment of this Act, the
Secretary of Agriculture shall develop a streamlined, simplified, and
uniform application which shall be used in applying for assistance under
all of the following:
(1) Sections 304(b), 306, 306A, 306C, 306D, 310B, and 375
and subtitle E of the Consolidated Farm and Rural Development
Act (7 U.S.C. 1924(b), 1926, 1926a, 1926c, 1926d, and 1932).
(2) Subtitle G of title XVI and sections 2281, 2333, and
2381 of the Food, Agriculture, Conservation, and Trade Act of
1990 (7 U.S.C. 5901-5908, 5177a, 950aaa-2, and 3125b).
(3) Subtitle C of title IX of the Food, Agriculture,
Conservation, and Trade Act Amendments of 1991 (Public Law 102-
237: 7 U.S.C. 5930 note).
(4) Section 1323(b) of the Food Security Act of 1985 (Public
Law 99-198; 7 U.S.C. 1932 note).
(5) Title V and section 603(c) of the Rural Development Act
of 1972 (7 U.S.C. 2661-2669 and 2204a(c)).
(6) Sections 5 and 311 and title IV of the Rural
Electrification Act of 1936 (7 U.S.C. 905, 940a, and 941-950b).
SEC. 763. COMMUNITY FACILITIES GRANT PROGRAM.
Section 306(a) of the Consolidated Farm and Rural Development Act (7
U.S.C. 1926(a)) (as amended by section 741(a)(5)) is amended by adding
at the end the following:
``(19) Community facilities grant program.--
``(A) In general.--The Secretary may make grants, in
a total amount not to exceed $10,000,000 for any fiscal
year, to associations, units of general local
government, nonprofit corporations, and federally
recognized Indian tribes to provide the Federal share of
the cost of developing specific essential community
facilities in rural areas.
``(B) Federal share.--
``(i) In general.--Except as provided in
clauses (ii) and (iii), the Secretary shall, by
regulation, establish the amount of the Federal
share of the cost of the facility under this
paragraph.
``(ii) Maximum amount.--The amount of a grant
provided under this paragraph for a facility shall
not exceed 75 percent of the cost of developing
the facility.
``(iii) Graduated scale.--The Secretary shall
provide for a graduated scale for the amount of
the Federal share provided under this paragraph,
with higher Federal shares for facilities in
communities that have lower community population
and income levels, as determined by the
Secretary.''.
[[Page 110 STAT. 1149]]
Subtitle C--Amendments to the Rural Electrification Act of 1936
SEC. 771. PURPOSES; INVESTIGATIONS AND REPORTS.
Section 2 of the Rural Electrification Act of 1936 (7 U.S.C. 902) is
amended--
(1) by striking ``Sec. 2. (a) The Secretary of Agriculture
is'' and inserting the following:
``SEC. 2. GENERAL AUTHORITY OF THE SECRETARY OF AGRICULTURE.
``(a) Loans.--The Secretary of Agriculture (referred to in this Act
as the `Secretary') is'';
(2) in subsection (a)--
(A) by striking ``and the furnishing'' the first
place it appears and all that follows through ``central
station service''; and
(B) by striking ``systems; to make'' and all that
follows and inserting ``systems.''; and
(3) by striking subsection (b) and inserting the following:
``(b) Investigations and Reports.--The Secretary may make, or cause
to be made, studies, investigations, and reports regarding matters,
including financial, technological, and regulatory matters, affecting
the condition and progress of electric, telecommunications, and economic
development in rural areas, and publish and disseminate information with
respect to the matters.''.
SEC. 772. AUTHORIZATION OF APPROPRIATIONS.
(a) In General.--Section 3 of the Rural Electrification Act of 1936
(7 U.S.C. 903) is amended to read as follows:
``SEC. 3. AUTHORIZATION OF APPROPRIATIONS.
``There are authorized to be appropriated such sums as are necessary
to carry out this Act.''.
(b) Conforming Amendments.--
(1) Section 301(a) of the Rural Electrification Act of 1936
(7 U.S.C. 931(a)) is amended--
(A) by striking ``(a)'' the first place the term
appears; and
(B) in paragraph (3), by striking ``notwithstanding
section 3(a) of title I,''.
(2) Section 302(b)(2) of the Rural Electrification Act of
1936 (7 U.S.C. 932(b)(2)) is amended by striking ``pursuant to
section 3(a) of this Act''.
(3) The last sentence of section 406(a) of the Rural
Electrification Act of 1936 (7 U.S.C. 946(a)) is amended by
striking ``pursuant to section 3(a) of this Act''.
SEC. 773. LOANS FOR ELECTRICAL PLANTS AND TRANSMISSION LINES.
Section 4 of the Rural Electrification Act of 1936 (7 U.S.C. 904) is
amended--
(1) in the first sentence--
(A) by striking ``for the furnishing of'' and all
that follows through ``central station service and'';
and
(B) by striking ``the provisions of sections 3(d)
and 3(e) but without regard to the 25 per centum
limitation therein contained,'' and inserting ``section
3,'';
[[Page 110 STAT. 1150]]
(2) in the second sentence, by striking ``: Provided
further, That all'' and all that follows through ``loan: And
provided further, That'' and inserting ``, except that''; and
(3) in the third sentence, by striking ``and section 5''.
SEC. 774. LOANS FOR ELECTRICAL AND PLUMBING EQUIPMENT.
(a) In General.--Section 5 of the Rural Electrification Act of 1936
(7 U.S.C. 905) is repealed.
(b) Conforming Amendments.--Section 12(a) of the Rural
Electrification Act of 1936 (7 U.S.C. 912(a)) is amended--
(1) by striking ``: Provided, however, That'' and inserting
``, except that,''; and
(2) by striking ``, and with respect to any loan made under
section 5,'' and all that follows through ``section 3''.
SEC. 775. TESTIMONY ON BUDGET REQUESTS.
Section 6 of the Rural Electrification Act of 1936 (7 U.S.C. 906) is
amended by striking the second sentence.
SEC. 776. TRANSFER OF FUNCTIONS OF ADMINISTRATION CREATED BY EXECUTIVE
ORDER.
Section 8 of the Rural Electrification Act of 1936 (7 U.S.C. 908) is
repealed.
SEC. 777. ANNUAL REPORT.
Section 10 of the Rural Electrification Act of 1936 (7 U.S.C. 910)
is repealed.
SEC. 778. PROHIBITION ON RESTRICTING WATER AND WASTE FACILITY SERVICES
TO ELECTRIC CUSTOMERS.
The Rural Electrification Act of 1936 is amended by inserting after
section 16 (7 U.S.C. 916) the following:
``SEC. 17. <<NOTE: 7 USC 917.>> PROHIBITION ON RESTRICTING WATER AND
WASTE FACILITY SERVICES TO ELECTRIC CUSTOMERS.
``(a) Prohibition.--Assistance under any rural development program
administered by the Secretary or any agency of the Department of
Agriculture shall not be conditioned on any requirement that the
recipient of the assistance accept or receive electric service from any
particular utility, supplier, or cooperative.
``(b) <<NOTE: Regulations.>> Ensuring Compliance.--The Secretary
shall establish, by regulation, adequate safeguards to ensure that
assistance under any rural development program is not subject to such a
condition. The safeguards shall include periodic certifications and
audits, and appropriate measures and sanctions against any person
violating, or attempting to violate subsection (a).
``(c) Definition of Rural Development Programs.--In this section,
the term `rural development program' means the following:
``(1) Sections 304(b), 306, 306A, 306C, 306D, 310B, and 375
and subtitle E of the Consolidated Farm and Rural Development
Act (7 U.S.C. 1924(b), 1926, 1926a, 1926c, 1926d, and 1932).
``(2) Subtitle G of title XVI and sections 2281, 2333, and
2381 of the Food, Agriculture, Conservation, and Trade Act of
1990 (7 U.S.C. 5901-5908, 5177a, 950aaa-2, and 3125b).
``(3) Subtitle C of title IX of the Food, Agriculture,
Conservation, and Trade Act Amendments of 1991 (Public Law 102-
237; 7 U.S.C. 5930 note).
[[Page 110 STAT. 1151]]
``(4) Section 1323(b) of the Food Security Act of 1985
(Public Law 99-198; 7 U.S.C. 1932 note).
``(5) Title V and section 603(c) of the Rural Development
Act of 1972 (7 U.S.C. 2661-2669 and 2204a(c)).
``(6) Sections 5 and 311 and title IV of this Act (7 U.S.C.
905, 940a, and 941-950b).
``(d) Regulations.--Not later than 60 days after the date of
enactment of the Federal Agriculture Improvement and Reform Act of 1996,
the Secretary shall issue final regulations to ensure compliance with
subsection (a).''.
SEC. 779. TELEPHONE LOAN TERMS AND CONDITIONS.
Section 309 of the Rural Electrification Act of 1936 (7 U.S.C. 939)
is amended--
(1) in subsection (a), by striking ``(a) In General.--'';
and
(2) by striking subsection (b).
SEC. 780. PRIVATIZATION PROGRAM.
Section 311 of the Rural Electrification Act of 1936 (7 U.S.C. 940a)
is repealed.
SEC. 781. RURAL BUSINESS INCUBATOR FUND.
(a) In General.--Section 502 of the Rural Electrification Act of
1936 (7 U.S.C. 950aa-1) is repealed.
(b) Conforming Amendments.--Section 501 of the Rural Electrification
Act of 1936 (7 U.S.C. 950aa) is amended--
(1) in paragraph (5), by inserting ``and'' at the end;
(2) in paragraph (6), by striking ``; and'' at the end and
inserting a period; and
(3) by striking paragraph (7).
Subtitle D--Miscellaneous Rural Development Provisions
SEC. 791. INTEREST RATE FORMULA.
(a) Bankhead-Jones Farm Tenant Act.--Section 32(e) of the Bankhead-
Jones Farm Tenant Act (7 U.S.C. 1011) is amended by striking the fifth
sentence and inserting the following: ``A loan under this subsection
shall be made under a contract that provides, under such terms and
conditions as the Secretary considers appropriate, for the repayment of
the loan in not more than 30 years, with interest at a rate not to
exceed the current market yield for outstanding municipal obligations
with remaining periods to maturity comparable to the average maturity
for the loan, adjusted to the nearest \1/8\ of 1 percent.''.
(b) Watershed Protection and Flood Prevention Act.--Section 8 of the
Watershed Protection and Flood Prevention Act (16 U.S.C. 1006a) is
amended by striking the second sentence and inserting the following: ``A
loan or advance under this section shall be made under a contract or
agreement that provides, under such terms and conditions as the
Secretary considers appropriate, for the repayment of the loan or
advance in not more than 50 years from the date when the principal
benefits of the works of improvement first become available, with
interest at a rate not to exceed the current market yield for
outstanding municipal obliga
[[Page 110 STAT. 1152]]
tions with remaining periods to maturity comparable to the average
maturity for the loan, adjusted to the nearest \1/8\ of 1 percent.''.
SEC. 792. GRANTS FOR FINANCIALLY STRESSED FARMERS, DISLOCATED FARMERS,
AND RURAL FAMILIES.
(a) In General.--Section 502 of the Rural Development Act of 1972 (7
U.S.C. 2662) is amended by striking subsection (f).
(b) Conforming Amendments.--
(1) Section 2389 of the Food, Agriculture, Conservation, and
Trade Act of 1990 (Public Law 101-624; 7 U.S.C. 2662 note) is
amended by striking subsection (d).
(2) Section 503(c) of the Rural Development Act of 1972 (7
U.S.C. 2663(c)) is amended--
(A) in paragraph (1)--
(i) by striking ``(1)'';
(ii) by striking ``section 502(e)'' and all
that follows through ``shall be distributed'' and
inserting ``subsections (e), (h), and (i) of
section 502 shall be distributed''; and
(iii) by striking ``objectives of'' and all
that follows through ``title'' and inserting
``objectives of subsections (e), (h), and (i) of
section 502''; and
(B) by striking paragraph (2).
SEC. 793. <<NOTE: 7 USC 2204f.>> FUND FOR RURAL AMERICA.
(a) In General.--There is established in the Treasury of the United
States an account to be known as the Fund for Rural America (referred to
in this section as the ``Account'') to provide funds for activities
described in subsection (c).
(b) Funding.--
(1) In general.--On January 1, 1997, October 1, 1998, and
October 1, 1999, out of any funds in the Treasury not otherwise
appropriated, the Secretary of the Treasury shall transfer
$100,000,000 to the Account.
(2) Entitlement.-- The Secretary of Agriculture (referred to
in this section as the ``Secretary'')--
(A) shall be entitled to receive the funds
transferred to the Account under paragraph (1);
(B) shall accept the funds; and
(C) shall use the funds to carry out this section.
(3) Purposes.--Subject to subsection (d), of the amounts
transferred to the Account for a fiscal year, the Secretary
shall make available--
(A) for activities described in subsection (c)(1),
not less than \1/3\ and not more than \2/3\ of the funds
in the Account; and
(B) for activities described in subsection (c)(2),
all funds in the Account not made available by the
Secretary for activities described in subsection (c)(1).
(c) Activities.--
(1) Rural development.--
(A) In general.--The Secretary may use the funds in
the Account for a rural development activity--
(i) authorized under the Housing Act of 1949
for--
(I) direct loans to low-income
borrowers under section 502 (42 U.S.C.
1472);
[[Page 110 STAT. 1153]]
(II) loans for financial assistance
for housing for domestic farm laborers
under section 514 (42 U.S.C. 1484);
(III) financial assistance for
housing for domestic farm laborers under
section 516 (42 U.S.C. 1486);
(IV) payments for elderly who are
not now receiving rental assistance
under section 521 (42 U.S.C. 1490a);
(V) grants and contracts for mutual
and self-help housing under section
523(b)(1)(A) (42 U.S.C. 1490c(b)(1)(A));
or
(VI) grants for rural housing
preservation under section 533 (42
U.S.C. 1490m); or
(ii) conducted under any rural development
program, including a program authorized under--
(I) the Consolidated Farm and Rural
Development Act (7 U.S.C. 1921 et seq.);
(II) subtitle G of title XVI and
title XXIII of the Food, Agriculture,
Conservation, and Trade Act of 1990;
(III) title V of the Rural
Development Act of 1971 (7 U.S.C. 2661
et seq.); or
(IV) section 1323(b) of the Food
Security Act of 1985 (Public Law 99-198;
7 U.S.C. 1932 note).
(B) Limitation on programs funded.--The Secretary
may not expend funds made available to carry out
activities described in subparagraph (A) for any
activity that did not receive appropriations for fiscal
year 1995. Funds expended under this section for any
program purpose shall be spent in accordance with and
subject to the applicable program limitations,
restrictions, and priorities found in the underlying
program authority and this Act.
(C) Limitation on housing assistance.--Not more than
20 percent of the funds made available to carry out
activities described in subparagraph (A) shall be made
available to carry out activities described in
subparagraph (A)(i).
(D) Disclosure of allocation.--For any fiscal year,
the Secretary shall not disclose the allocation of funds
under this section for any activity described in
subparagraph (A) until the date that is 1 day after the
date of enactment of legislation authorizing
appropriations for the Department of Agriculture for any
period in the fiscal year.
(2) Research.--
(A) In general.--The Secretary may use the funds in
the Account for research, extension, and education
grants to--
(i) increase international competitiveness,
efficiency, and farm profitability;
(ii) reduce economic and health risks;
(iii) conserve and enhance natural resources;
(iv) develop new crops, new crop uses, and new
agricultural applications of biotechnology;
(v) enhance animal agricultural resources;
(vi) preserve plant and animal germplasm;
[[Page 110 STAT. 1154]]
(vii) increase economic opportunities in
farming and rural communities; and
(viii) expand locally-owned value-added
processing.
(B) Eligible grantee.--The Secretary may make a
grant under this paragraph to--
(i) a Federal research agency;
(ii) a national laboratory;
(iii) a college or university or a research
foundation maintained by a college or university;
or
(iv) a private research organization with an
established and demonstrated capacity to perform
research or technology transfer.
(C) Use of grant.--
(i) In general.--A grant made under this
paragraph may be used by a grantee for 1 or more
of the following uses:
(I) Outcome-oriented research at the
discovery end of the spectrum to provide
breakthrough results.
(II) Exploratory and advanced
development and technology with well-
identified outcomes.
(III) A national, regional, or
multi-State program oriented primarily
toward extension programs and education
programs demonstrating and supporting
the competitiveness of United States
agriculture.
(ii) Smaller institutions.--Of the amounts
made available for activities described in this
paragraph, not less than 15 percent shall be
awarded to colleges, universities, or research
foundations eligible for a grant under
subparagraph (B)(iii) that rank in the lowest \1/
3\ of such colleges, universities, and foundations
on the basis of Federal research funds received
under a provision of law other than this section.
(D) Administration.--
(i) Priority.--In administering this
paragraph, the Secretary shall--
(I) establish criteria for
allocating grants based on the
priorities in subparagraph (A) and in
consultation with the National
Agricultural Research, Extension,
Education, and Economics Advisory Board
established under section 1408 of the
National Agricultural Research,
Extension, and Teaching Policy Act of
1977 (7 U.S.C. 3123);
(II) seek and accept proposals for
grants;
(III) determine the relevance and
merit of proposals through a system of
peer review and review by the National
Agricultural Research, Extension,
Education, and Economics Advisory Board;
and
(IV) award grants on the basis of
merit, quality, and relevance to
advancing the purposes of federally
supported agricultural research,
extension, and education provided in
section 1402 of the National
Agricultural Research, Extension, and
Teaching Policy Act of 1977 (7 U.S.C.
3101).
[[Page 110 STAT. 1155]]
(ii) Competitive basis.--A grant under this
paragraph shall be awarded on a competitive basis.
(iii) Terms.--A grant under this paragraph
shall have a term that does not exceed 5 years.
(iv) Matching funds.--As a condition of making
a grant under this paragraph, the Secretary shall
require the funding of the grant with equal
matching funds from a non-Federal source if the
grant is--
(I) for applied research that is
commodity-specific; and
(II) not of national scope.
(v) Delegation.--The Secretary shall
administer this section through the Cooperative
State Research, Education, and Extension Service
of the Department of Agriculture.
(vi) Availability of funds.--Funds shall be
available for obligation under this paragraph for
a 2-year period.
(vii) Administrative costs.--The Secretary may
use not more than 4 percent of the funds made
available for activities described in this
paragraph for administrative costs incurred by the
Secretary in carrying out this paragraph.
(viii) Buildings.--Funds made available for
activities described in this paragraph shall not
be used for the construction of a new building or
the acquisition, expansion, remodeling, or
alteration of an existing building (including site
grading and improvement and architect fees).
(d) Limitations.--Amounts in the Account may not be used for an
activity described in subsection (c) for a fiscal year if the program
funding level for the fiscal year for the activity is less than 90
percent of the amount appropriated for the activity for fiscal year
1996, adjusted for inflation.
SEC. 794. UNDER SECRETARY OF AGRICULTURE FOR RURAL ECONOMIC AND
COMMUNITY DEVELOPMENT RENAMED THE UNDER SECRETARY OF
AGRICULTURE FOR RURAL DEVELOPMENT.
(a) In General.--Section 231 of the Department of Agriculture
Reorganization Act of 1994 (7 U.S.C. 6941) is amended--
(1) in the section heading, by striking ``economic and
community''; and
(2) by striking ``Economic and Community'' each place such
term appears in subsections (a), (b), and (c).
(b) Conforming Amendment.--Section 5314 of title 5, United States
Code, is amended by striking ``Economic and Community''.
[[Page 110 STAT. 1156]]
TITLE VIII--RESEARCH, EXTENSION, AND EDUCATION
Subtitle A--Modification and Extension of Activities Under 1977 Act
SEC. 801. PURPOSES OF AGRICULTURAL RESEARCH, EXTENSION, AND EDUCATION.
Section 1402 of the National Agricultural Research, Extension, and
Teaching Policy Act of 1977 (7 U.S.C. 3101) is amended to read as
follows:
``SEC. 1402. PURPOSES OF AGRICULTURAL RESEARCH, EXTENSION, AND
EDUCATION.
``The purposes of federally supported agricultural research,
extension, and education are to--
``(1) enhance the competitiveness of the United States
agriculture and food industry in an increasingly competitive
world environment;
``(2) increase the long-term productivity of the United
States agriculture and food industry while maintaining and
enhancing the natural resource base on which rural America and
the United States agricultural economy depend;
``(3) develop new uses and new products for agricultural
commodities, such as alternative fuels, and develop new crops;
``(4) support agricultural research and extension to promote
economic opportunity in rural communities and to meet the
increasing demand for information and technology transfer
throughout the United States agriculture industry;
``(5) improve risk management in the United States
agriculture industry;
``(6) improve the safe production and processing of, and
adding of value to, United States food and fiber resources using
methods that maintain the balance between yield and
environmental soundness;
``(7) support higher education in agriculture to give the
next generation of Americans the knowledge, technology, and
applications necessary to enhance the competitiveness of United
States agriculture; and
``(8) maintain an adequate, nutritious, and safe supply of
food to meet human nutritional needs and requirements.''.
SEC. 802. NATIONAL AGRICULTURAL RESEARCH, EXTENSION, EDUCATION, AND
ECONOMICS ADVISORY BOARD.
(a) In General.--Section 1408 of the National Agricultural Research,
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3123) is amended to
read as follows:
``SEC. 1408. NATIONAL AGRICULTURAL RESEARCH, EXTENSION, EDUCATION, AND
ECONOMICS ADVISORY BOARD.
``(a) Establishment.--The Secretary shall establish within the
Department of Agriculture a board to be known as the `National
Agricultural Research, Extension, Education, and Economics Advisory
Board'.
``(b) Membership.--
[[Page 110 STAT. 1157]]
``(1) In general.--The Advisory Board shall consist of 30
members, appointed by the Secretary.
``(2) Selection of members.--The Secretary shall appoint
members of the Advisory Board from nominations submitted by
organizations, associations, societies, councils, federations,
groups, and companies fitting the criteria specified in
paragraph (3).
``(3) Membership categories.--The Advisory Board shall
consist of members from each of the following categories:
``(A) 1 member representing a national farm
organization.
``(B) 1 member representing farm cooperatives.
``(C) 1 member actively engaged in the production of
a food animal commodity.
``(D) 1 member actively engaged in the production of
a plant commodity.
``(E) 1 member representing a national animal
commodity organization.
``(F) 1 member representing a national crop
commodity organization.
``(G) 1 member representing a national aquaculture
association.
``(H) 1 member representing a national food animal
science society.
``(I) 1 member representing a national crop, soil,
agronomy, horticulture, or weed science society.
``(J) 1 member representing a national food science
organization.
``(K) 1 member representing a national human health
association.
``(L) 1 member representing a national nutritional
science society.
``(M) 1 member representing the land-grant colleges
and universities eligible to receive funds under the Act
of July 2, 1862 (7 U.S.C. 301 et seq.).
``(N) 1 member representing the land-grant colleges
and universities eligible to receive funds under the Act
of August 30, 1890 (7 U.S.C. 321 et seq.), including
Tuskegee University.
``(O) 1 member representing the 1994 Institutions
(as defined in section 532 of the Equity in Educational
Land-Grant Status Act of 1994 (Public Law 103-382; 7
U.S.C. 301 note)).
``(P) 1 member representing Hispanic-serving
institutions.
``(Q) 1 member representing the American Colleges of
Veterinary Medicine.
``(R) 1 member representing that portion of the
scientific community not closely associated with
agriculture.
``(S) 1 member engaged in the transportation of food
and agricultural products to domestic and foreign
markets.
``(T) 1 member representing food retailing and
marketing interests.
``(U) 1 member representing food and fiber
processors.
``(V) 1 member actively engaged in rural economic
development.
[[Page 110 STAT. 1158]]
``(W) 1 member representing a national consumer
interest group.
``(X) 1 member representing a national forestry
group.
``(Y) 1 member representing a national conservation
or natural resource group.
``(Z) 1 member representing private sector
organizations involved in international development.
``(AA) 1 member representing an agency within the
Department of Agriculture that lacks research
capabilities.
``(BB) 1 member representing a research agency of
the Federal Government (other than the Department of
Agriculture).
``(CC) 1 member representing a national social
science association.
``(DD) 1 member representing national organizations
directly concerned with agricultural research,
education, and extension.
``(4) Ex officio members.--The Secretary, the Under
Secretary of Agriculture for Research, Education, and Economics,
the Administrator of the Agricultural Research Service, the
Administrator of the Cooperative State Research, Education, and
Extension Service, the Administrator of the Economic Research
Service, and the Administrator of the National Agricultural
Statistics Service shall serve as ex officio members of the
Advisory Board.
``(5) Officers.--At the first meeting of the Advisory Board
each year, the members shall elect from among the members of the
Advisory Board a chairperson, vice chairperson, and 7 additional
members to serve on the executive committee established under
paragraph (6).
``(6) Executive committee.--The Advisory Board shall
establish an executive committee charged with the responsibility
of working with the Secretary and officers and employees of the
Department of Agriculture to summarize and disseminate the
recommendations of the Advisory Board.
``(c) Duties.--The Advisory Board shall--
``(1) review and provide consultation to the Secretary and
land-grant colleges and universities on long-term and short-term
national policies and priorities, as set forth in section 1402,
relating to agricultural research, extension, education, and
economics;
``(2) evaluate the results and effectiveness of agricultural
research, extension, education, and economics with respect to
the policies and priorities;
``(3) review and make recommendations to the Under Secretary
of Agriculture for Research, Education, and Economics on the
research, extension, education, and economics portion of the
draft strategic plan required under section 306 of title 5,
United States Code; and
``(4) review the mechanisms of the Department of Agriculture
for technology assessment (which should be conducted by
qualified professionals) for the purposes of--
``(A) performance measurement and evaluation of the
implementation by the Secretary of the strategic plan
required under section 306 of title 5, United States
Code;
``(B) implementation of the national research
policies and priorities set forth in section 1402; and
[[Page 110 STAT. 1159]]
``(C) the development of mechanisms for the
assessment of emerging public and private agricultural
research and technology transfer initiatives.
``(d) Consultation.--In carrying out this section, the Advisory
Board shall solicit opinions and recommendations from persons who will
benefit from and use federally funded agricultural research, extension,
education, and economics.
``(e) Appointment.--A member of the Advisory Board shall be
appointed by the Secretary for a term of up to 3 years. The members of
the Advisory Board shall be appointed to serve staggered terms.
``(f) Federal Advisory Committee Act.--The Advisory Board shall be
deemed to have filed a charter for the purpose of section 9(c) of the
Federal Advisory Committee Act (5 U.S.C. App.).
``(g) Termination.--The Advisory Board shall remain in existence
until September 30, 2002.''.
(b) Conforming Amendments.--
(1) Section 1404(1) of the National Agricultural Research,
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3103(1)) is
amended by striking ``National Agricultural Research and
Extension Users Advisory Board'' and inserting ``National
Agricultural Research, Extension, Education, and Economics
Advisory Board''.
(2) Section 1410(2) of the National Agricultural Research,
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3125(2)) is
amended by striking ``the recommendations of the Advisory Board
developed under section 1408(g),'' and inserting ``any
recommendations of the Advisory Board''.
(3) The last sentence of section 4(a) of the Renewable
Resources Extension Act of 1978 (16 U.S.C. 1673(a)) is amended
by striking ``National Agricultural Research and Extension Users
Advisory Board'' and inserting ``National Agricultural Research,
Extension, Education, and Economics Advisory Board''.
SEC. 803. FEDERAL ADVISORY COMMITTEE ACT EXEMPTION FOR FEDERAL-STATE
COOPERATIVE PROGRAMS.
Section 1409A of the National Agricultural Research, Extension, and
Teaching Policy Act of 1977 (7 U.S.C. 3124a) is amended by adding at the
end the following:
``(e) Applicability of Federal Advisory Committee Act.--
``(1) Public meetings.--All meetings of any entity described
in paragraph (3) shall be publicly announced in advance and
shall be open to the public. <<NOTE: Records.>> Detailed
minutes of meetings and other appropriate records of the
activities of such an entity shall be kept and made available to
the public on request.
``(2) Exemption.--The Federal Advisory Committee Act (5
U.S.C. App.) and title XVIII of this Act shall not apply to any
entity described in paragraph (3).
``(3) Entities described.--This subsection shall apply to
any committee, board, commission, panel, or task force, or
similar entity that--
``(A) is created for the purpose of cooperative
efforts in agricultural research, extension, or
teaching; and
``(B) consists entirely of--
``(i) full-time Federal employees; and
[[Page 110 STAT. 1160]]
``(ii) one or more individuals who are
employed by, or are officials of--
``(I) a State cooperative
institution or State cooperative agency;
or
``(II) a public college or
university or other postsecondary
institution.''.
SEC. 804. COORDINATION AND PLANNING OF AGRICULTURAL RESEARCH, EXTENSION,
AND EDUCATION.
The National Agricultural Research, Extension, and Teaching Policy
Act of 1977 is amended by inserting after section 1413 (7 U.S.C. 3128)
the following:
``SEC. 1413A. <<NOTE: 7 USC 3129.>> ACCOUNTABILITY.
``(a) Review of Information Technology Systems.--The Secretary shall
conduct a comprehensive review of state-of-the-art information
technology systems that are available for use in developing the system
required by subsection (b).
``(b) Monitoring and Evaluation System.--The Secretary shall develop
and carry out a system to monitor and evaluate agricultural research and
extension activities conducted or supported by the Department of
Agriculture that will enable the Secretary to measure the impact and
effectiveness of research, extension, and education programs according
to priorities, goals, and mandates established by law. In developing the
system, the Secretary shall incorporate information transfer
technologies to optimize public access to research information.
``(c) Consistency With Other Requirements.--The Secretary shall
develop and implement the system in a manner consistent with the
Government Performance and Results Act of 1993 (Public Law 103-62; 107
Stat. 285) and amendments made by the Act.
``(d) Authorization of Appropriations.--There are authorized to be
appropriated such sums as are necessary to carry out this section.
``SEC. 1413B. <<NOTE: 7 USC 3129a.>> FEDERAL ADVISORY COMMITTEE ACT
EXEMPTION FOR COMPETITIVE RESEARCH, EXTENSION, AND EDUCATION
PROGRAMS.
``The Federal Advisory Committee Act (5 U.S.C. App.) and title XVIII
of this Act shall not apply to any committee, board, commission, panel,
or task force, or similar entity, created solely for the purpose of
reviewing applications or proposals requesting funding under any
competitive research, extension, or education program carried out by the
Secretary.''.
SEC. 805. GRANTS AND FELLOWSHIPS FOR FOOD AND AGRICULTURAL SCIENCES
EDUCATION.
(a) Purpose of Grants.--Section 1417(b) of the National Agricultural
Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3152(b))
is amended by striking paragraph (4) and inserting the following:
``(4) to design and implement food and agricultural programs
to build teaching and research capacity at colleges and
universities having significant minority enrollments;''.
(b) Research Foundations.--Section 1417(c) of the National
Agricultural Research, Extension, and Teaching Policy Act of 1977 (7
U.S.C. 3152(c)) is amended by adding at the end the following:
[[Page 110 STAT. 1161]]
``(3) Research foundations.--An eligible college or
university under subsection (b) includes a research foundation
maintained by the college or university.''.
(c) Extension of Program.--Section 1417(i) of the National
Agricultural Research, Extension, and Teaching Policy Act of 1977 (7
U.S.C. 3152(i)) is amended by striking ``1995'' and inserting ``1997''.
(d) Secondary Education and 2-Year Postsecondary Education Teaching
Programs.--Section 1417 of the National Agricultural Research,
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3152) is amended--
(1) by redesignating subsections (h) and (i) as subsections
(i) and (j), respectively; and
(2) by inserting after subsection (g) the following:
``(h) Secondary Education and 2-Year Postsecondary Education
Teaching Programs.--
``(1) Definitions.--In this subsection:
``(A) Institution of higher education.--The term
`institution of higher education' has the meaning given
the term in section 1201(a) of the Higher Education Act
of 1965 (20 U.S.C. 1141(a)).
``(B) Secondary school.--The term `secondary school'
has the meaning given the term in section 14101(25) of
the Elementary and Secondary Education Act of 1965 (20
U.S.C. 8801(25)).
``(2) Agriscience and agribusiness education.--The Secretary
shall--
``(A) promote and strengthen secondary education and
2-year postsecondary education in agriscience and
agribusiness in order to help ensure the existence in
the United States of a qualified workforce to serve the
food and agricultural sciences system; and
``(B) promote complementary and synergistic linkages
among secondary, 2-year postsecondary, and higher
education programs in the food and agricultural sciences
in order to promote excellence in education and
encourage more young Americans to pursue and complete a
baccalaureate or higher degree in the food and
agricultural sciences.
``(3) Grants.--The Secretary may make competitive or
noncompetitive grants, for grant periods not to exceed 5 years,
to public secondary schools, and institutions of higher
education that award an associate's degree, that the Secretary
determines have made a commitment to teaching agriscience and
agribusiness--
``(A) to enhance curricula in agricultural
education;
``(B) to increase faculty teaching competencies;
``(C) to interest young people in pursuing higher
education in order to prepare for scientific and
professional careers in the food and agricultural
sciences;
``(D) to promote the incorporation of agriscience
and agribusiness subject matter into other instructional
programs, particularly classes in science, business, and
consumer education;
``(E) to facilitate joint initiatives by the grant
recipient with other secondary schools, institutions of
higher education that award an associate's degree, and
institutions
[[Page 110 STAT. 1162]]
of higher education that award a bachelor's degree to
maximize the development and use of resources, such as
faculty, facilities, and equipment, to improve
agriscience and agribusiness education; and
``(F) to support other initiatives designed to meet
local, State, regional, or national needs related to
promoting excellence in agriscience and agribusiness
education.''.
SEC. 806. GRANTS FOR RESEARCH ON THE PRODUCTION AND MARKETING OF
ALCOHOLS AND INDUSTRIAL HYDROCARBONS FROM AGRICULTURAL
COMMODITIES AND FOREST PRODUCTS.
Section 1419(d) of the National Agricultural Research, Extension,
and Teaching Policy Act of 1977 (7 U.S.C. 3154(d)) is amended by
striking ``1995'' and inserting ``1997''.
SEC. 807. POLICY RESEARCH CENTERS.
The National Agricultural Research, Extension, and Teaching Policy
Act of 1977 is amended by inserting after section 1419 (7 U.S.C. 3154)
the following:
``SEC. 1419A. <<NOTE: 7 USC 3155.>> POLICY RESEARCH CENTERS.
``(a) In General.--Consistent with this section, the Secretary may
make grants, competitive grants, and special research grants to, and
enter into cooperative agreements and other contracting instruments
with, policy research centers described in subsection (b) to conduct
research and education programs that are objective, operationally
independent, and external to the Federal Government and that concern the
effect of public policies on--
``(1) the farm and agricultural sectors;
``(2) the environment;
``(3) rural families, households, and economies; and
``(4) consumers, food, and nutrition.
``(b) Eligible Recipients.--State agricultural experiment stations,
colleges and universities, other research institutions and
organizations, private organizations, corporations, and individuals
shall be eligible to apply for funding under subsection (a).
``(c) Activities.--Under this section, funding may be provided for
disciplinary and interdisciplinary research and education concerning
policy research activities consistent with this section, including
activities that--
``(1) quantify the implications of public policies and
regulations;
``(2) develop theoretical and research methods;
``(3) collect and analyze data for policymakers, analysts,
and individuals; and
``(4) develop programs to train analysts.
``(d) Authorization of Appropriations.--There are authorized to be
appropriated such sums as are necessary to carry out this section for
fiscal years 1996 and 1997.''.
SEC. 808. HUMAN NUTRITION INTERVENTION AND HEALTH PROMOTION RESEARCH
PROGRAM.
The National Agricultural Research, Extension, and Teaching Policy
Act of 1977 is amended by striking section 1424 (7 U.S.C. 3174) and
inserting the following:
[[Page 110 STAT. 1163]]
``SEC. 1424. <<NOTE: 7 USC 3174.>> HUMAN NUTRITION INTERVENTION AND
HEALTH PROMOTION RESEARCH PROGRAM.
``(a) Authority of Secretary.--The Secretary may establish, and
award grants for projects for, a multi-year research initiative on human
nutrition intervention and health promotion.
``(b) Emphasis of Initiative.--In administering human nutrition
research projects under this section, the Secretary shall give specific
emphasis to--
``(1) coordinated longitudinal research assessments of
nutritional status; and
``(2) the implementation of unified, innovative intervention
strategies,
to identify and solve problems of nutritional inadequacy and contribute
to the maintenance of health, well-being, performance, and productivity
of individuals, thereby reducing the need of the individuals to use the
health care system and social programs of the United States.
``(c) Administration of Funds.--The Administrator of the
Agricultural Research Service shall administer funds made available to
carry out this section to ensure a coordinated approach to health and
nutrition research efforts.
``(d) Authorization of Appropriations.--There are authorized to be
appropriated such sums as are necessary to carry out this section for
fiscal years 1996 and 1997.
``SEC. 1424A. <<NOTE: 7 USC 3174a.>> PILOT RESEARCH PROGRAM TO COMBINE
MEDICAL AND AGRICULTURAL RESEARCH.
``(a) Findings.--Congress finds the following:
``(1) Although medical researchers in recent years have
demonstrated that there are several naturally occurring
compounds in many vegetables and fruits that can aid in the
prevention of certain forms of cancer, coronary heart disease,
stroke, and atherosclerosis, there has been almost no research
conducted to enhance these compounds in food plants by modern
breeding and molecular genetic methods.
``(2) By linking the appropriate medical and agricultural
research scientists in a highly-focused, targeted research
program, it should be possible to develop new varieties of
vegetables and fruits that would provide greater prevention of
diet-related diseases that are a major cause of death in the
United States.
``(b) Pilot Research Program.--The Secretary shall conduct, through
the Cooperative State Research, Education, and Extension Service, a
pilot research program to link major cancer and heart and other
circulatory disease research efforts with agricultural research efforts
to identify compounds in vegetables and fruits that prevent these
diseases. Using information derived from such combined research efforts,
the Secretary shall assist in the development of new varieties of
vegetables and fruits having enhanced therapeutic properties for disease
prevention.
``(c) Agreements.--The Secretary shall carry out the pilot program
through agreements entered into with land-grant colleges or
universities, other universities, State agricultural experiment
stations, the State cooperative extension services, nonprofit
organizations with demonstrable expertise, or Federal or State
governmental entities. The Secretary shall enter into the agreements on
a competitive basis.
[[Page 110 STAT. 1164]]
``(d) Authorization of Appropriations.--There are authorized to be
appropriated $10,000,000 for fiscal year 1997 to carry out the pilot
program.''.
SEC. 809. FOOD AND NUTRITION EDUCATION PROGRAM.
Section 1425(c)(3) of the National Agricultural Research, Extension,
and Teaching Policy Act of 1977 (7 U.S.C. 3175(c)(3)) is amended by
striking ``$63,000,000'' and all that follows through ``fiscal year
1995'' and inserting ``, $83,000,000 for each of fiscal years 1996 and
1997''.
SEC. 810. PURPOSES AND FINDINGS RELATING TO ANIMAL HEALTH AND DISEASE
RESEARCH.
Section 1429 of the National Agricultural Research, Extension, and
Teaching Policy Act of 1977 (7 U.S.C. 3191) is amended to read as
follows:
``SEC. 1429. PURPOSES AND FINDINGS RELATING TO ANIMAL HEALTH AND DISEASE
RESEARCH.
``(a) Purposes.--The purposes of this subtitle are to--
``(1) promote the general welfare through the improved
health and productivity of domestic livestock, poultry, aquatic
animals, and other income-producing animals that are essential
to the food supply of the United States and the welfare of
producers and consumers of animal products;
``(2) improve the health of horses;
``(3) facilitate the effective treatment of, and, to the
extent possible, prevent animal and poultry diseases in both
domesticated and wild animals that, if not controlled, would be
disastrous to the United States livestock and poultry industries
and endanger the food supply of the United States;
``(4) improve methods for the control of organisms and
residues in food products of animal origin that could endanger
the human food supply;
``(5) improve the housing and management of animals to
improve the well-being of livestock production species;
``(6) minimize livestock and poultry losses due to
transportation and handling;
``(7) protect human health through control of animal
diseases transmissible to humans;
``(8) improve methods of controlling the births of predators
and other animals; and
``(9) otherwise promote the general welfare through expanded
programs of research and extension to improve animal health.
``(b) Findings.--Congress finds that--
``(1) the total animal health and disease research and
extension efforts of State colleges and universities and of the
Federal Government would be more effective if there were close
coordination between the efforts; and
``(2) colleges and universities having accredited schools or
colleges of veterinary medicine and State agricultural
experiment stations that conduct animal health and disease
research are especially vital in training research workers in
animal health and related disciplines.''.
[[Page 110 STAT. 1165]]
SEC. 811. ANIMAL HEALTH AND DISEASE CONTINUING RESEARCH.
Section 1433 of the National Agricultural Research, Extension, and
Teaching Policy Act of 1977 (7 U.S.C. 3195) is amended--
(1) in the first sentence of subsection (a), by striking
``1995'' and inserting ``1997'';
(2) in subsection (b)(2)--
(A) by striking ``domestic livestock and poultry''
each place it appears and inserting ``domestic
livestock, poultry, and commercial aquaculture
species''; and
(B) in the second sentence, by striking ``horses,
and poultry'' and inserting ``horses, poultry, and
commercial aquaculture species'';
(3) in subsection (d), by striking ``domestic livestock and
poultry'' and inserting ``domestic livestock, poultry, and
commercial aquaculture species''; and
(4) in subsection (f), by striking ``domestic livestock and
poultry'' and inserting ``domestic livestock, poultry, and
commercial aquaculture species''.
SEC. 812. ANIMAL HEALTH AND DISEASE NATIONAL OR REGIONAL RESEARCH.
Section 1434 of the National Agricultural Research, Extension, and
Teaching Policy Act of 1977 (7 U.S.C. 3196) is amended--
(1) in subsection (a)--
(A) by inserting ``or national or regional problems
relating to pre-harvest, on-farm food safety, or animal
well-being,'' after ``problems,''; and
(B) by striking ``1995'' and inserting ``1997'';
(2) in subsection (b), by striking ``eligible institutions''
and inserting ``State agricultural experiment stations, colleges
and universities, other research institutions and organizations,
Federal agencies, private organizations or corporations, and
individuals'';
(3) in subsection (c)--
(A) in the first sentence, by inserting ``, food
safety, and animal well-being'' after ``animal health
and disease''; and
(B) in the fourth sentence--
(i) by redesignating paragraphs (2) and (3) as
paragraphs (4) and (5), respectively; and
(ii) by inserting after paragraph (1) the
following:
``(2) any food safety problem that has a significant pre-
harvest (on-farm) component and is recognized as posing a
significant health hazard to the consuming public;
``(3) issues of animal well-being related to production
methods that will improve the housing and management of animals
to improve the well-being of livestock production species;'';
(4) in the first sentence of subsection (d), by striking
``to eligible institutions''; and
(5) by adding at the end the following:
``(f) Applicability of Federal Advisory Committee Act.--The Federal
Advisory Committee Act (5 U.S.C. App.) and title XVIII of this Act shall
not apply to a panel or board created solely for the purpose of
reviewing applications or proposals submitted under this subtitle.''.
[[Page 110 STAT. 1166]]
SEC. 813. GRANT PROGRAM TO UPGRADE AGRICULTURAL AND FOOD SCIENCES
FACILITIES AT 1890 LAND-GRANT COLLEGES.
Section 1447(b) of the National Agricultural Research, Extension,
and Teaching Policy Act of 1977 (7 U.S.C. 3222b(b)) is amended by
striking ``$8,000,000 for each of the fiscal years 1991 through 1995''
and inserting ``, $15,000,000 for each of fiscal years 1996 and 1997''.
SEC. 814. NATIONAL RESEARCH AND TRAINING CENTENNIAL CENTERS.
Section 1448 of the National Agricultural Research, Extension, and
Teaching Policy Act of 1977 (7 U.S.C. 3222c) is amended--
(1) in subsection (a)(1), by inserting ``, or fiscal years
1996 and 1997,'' after ``1995''; and
(2) in subsection (f), by striking ``1995'' and inserting
``1997''.
SEC. 815. PROGRAMS FOR HISPANIC-SERVING INSTITUTIONS.
(a) In General.--The National Agricultural Research, Extension, and
Teaching Policy Act of 1977 is amended by inserting after section 1448
(7 U.S.C. 3222c) the following:
``Subtitle H--Programs for Hispanic-Serving Institutions
``SEC. 1455. <<NOTE: 7 USC 3241.>> EDUCATION GRANTS PROGRAMS FOR
HISPANIC-SERVING INSTITUTIONS.
``(a) Grant Authority.--The Secretary may make competitive grants
(or grants without regard to any requirement for competition) to
Hispanic-serving institutions for the purpose of promoting and
strengthening the ability of Hispanic-serving institutions to carry out
education, applied research, and related community development programs.
``(b) Use of Grant Funds.--Grants made under this section shall be
used--
``(1) to support the activities of consortia of Hispanic-
serving institutions to enhance educational equity for
underrepresented students;
``(2) to strengthen institutional educational capacities,
including libraries, curriculum, faculty, scientific
instrumentation, instruction delivery systems, and student
recruitment and retention, in order to respond to identified
State, regional, national, or international educational needs in
the food and agricultural sciences;
``(3) to attract and support undergraduate and graduate
students from underrepresented groups in order to prepare them
for careers related to the food, agricultural, and natural
resource systems of the United States, beginning with the
mentoring of students at the high school level and continuing
with the provision of financial support for students through
their attainment of a doctoral degree; and
``(4) to facilitate cooperative initiatives between 2 or
more Hispanic-serving institutions, or between Hispanic-serving
institutions and units of State government or the private
sector, to maximize the development and use of resources, such
as faculty, facilities, and equipment, to improve food and
agricultural sciences teaching programs.
[[Page 110 STAT. 1167]]
``(c) Authorization of Appropriations.--There are authorized to be
appropriated to make grants under this section $20,000,000 for fiscal
year 1997.''.
(b) Hispanic-Serving Institution Defined.--Paragraph (9) of section
1404 of the National Agricultural Research, Extension, and Teaching
Policy Act of 1977 (7 U.S.C. 3103) is amended to read as follows:
``(9) the term `Hispanic-serving institution' has the
meaning given the term by section 316(b)(1) of the Higher
Education Act of 1965 (20 U.S.C. 1059c(b)(1));''.
SEC. 816. INTERNATIONAL AGRICULTURAL RESEARCH AND EXTENSION.
Section 1458(a)(8) of the National Agricultural Research, Extension,
and Teaching Policy Act of 1977 (7 U.S.C. 3291(a)(8)) is amended--
(1) by striking ``establish'' and inserting ``continue'';
and
(2) by striking ``to be''.
SEC. 817. AUTHORIZATION OF APPROPRIATIONS FOR AGRICULTURAL RESEARCH
PROGRAMS.
Section 1463 of the National Agricultural Research, Extension, and
Teaching Policy Act of 1977 (7 U.S.C. 3311) is amended by striking
``1995'' both places it appears and inserting ``1997''.
SEC. 818. AUTHORIZATION OF APPROPRIATIONS FOR EXTENSION EDUCATION.
Section 1464 of the National Agricultural Research, Extension, and
Teaching Policy Act of 1977 (7 U.S.C. 3312) is amended by striking
``fiscal year 1995'' and inserting ``each of fiscal years 1995 through
1997''.
SEC. 819. SUPPLEMENTAL AND ALTERNATIVE CROPS RESEARCH.
(a) Extension of Program.--Section 1473D(a) of the National
Agricultural Research, Extension, and Teaching Policy Act of 1977 (7
U.S.C. 3319d(a)) is amended by striking ``1995'' and inserting ``1997''.
(b) Elimination of Pilot Nature of Program.--Section 1473D of the
National Agricultural Research, Extension, and Teaching Policy Act of
1977 (7 U.S.C. 3319d) is amended--
(1) in subsection (a), by striking ``and pilot'';
(2) in subsection (c)(2)(B), by striking ``at pilot sites''
and all that follows through ``the area'';
(3) in subsection (c)(2)(C), by striking ``from pilot
sites'';
(4) in subsection (c)(2)(D)--
(A) by striking ``near such pilot sites''; and
(B) by striking ``successful pilot program'' and
inserting ``successful program''; and
(5) in paragraph (3), by striking ``pilot''.
(c) Additional Authority.--Section 1473D(c)(3) of the National
Agricultural Research, Extension, and Teaching Policy Act of 1977 (7
U.S.C. 3319d(c)(3)) is amended--
(1) in subparagraph (C), by striking ``and'' at the end;
(2) in subparagraph (D), by striking the period at the end
and inserting a semicolon; and
(3) by adding at the end the following:
``(E) to conduct fundamental and applied research related to
the development of new commercial products derived from
[[Page 110 STAT. 1168]]
natural plant material for industrial, medical, and agricultural
applications; and
``(F) to participate with colleges and universities, other
Federal agencies, and private sector entities in conducting
research described in subparagraph (E).''.
SEC. 820. AQUACULTURE ASSISTANCE PROGRAMS.
(a) Definition.--Section 1404(3) of the National Agricultural
Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3103(3))
is amended by inserting ``ornamental fish,'' after ``reptile,''.
(b) Reports.--Section 1475 of the National Agricultural Research,
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3322) is amended--
(1) by striking subsection (e); and
(2) by redesignating subsections (f) and (g) as subsections
(e) and (f), respectively.
(c) Authorization of Appropriations for Aquaculture Research
Facilities.--Section 1476(b) of the National Agricultural Research,
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3323(b)) is amended
by striking ``1995'' and inserting ``1997''.
(d) Authorization of Appropriations for Research and Extension.--
Section 1477 of the National Agricultural Research, Extension, and
Teaching Policy Act of 1977 (7 U.S.C. 3324) is amended by striking
``1995'' and inserting ``1997''.
SEC. 821. AUTHORIZATION OF APPROPRIATIONS FOR RANGELAND RESEARCH.
Section 1483(a) of the National Agricultural Research, Extension,
and Teaching Policy Act of 1977 (7 U.S.C. 3336(a)) is amended by
striking ``1995'' and inserting ``1997''.
Subtitle B--Modification and Extension of Activities Under 1990 Act
SEC. 831. WATER QUALITY RESEARCH, EDUCATION, AND COORDINATION.
Section 1481(d) of the Food, Agriculture, Conservation, and Trade
Act of 1990 (7 U.S.C. 5501(d)) is amended by striking ``1995'' and
inserting ``1997''.
SEC. 832. NATIONAL GENETICS RESOURCES PROGRAM.
(a) Functions.--Section 1632(d) of the Food, Agriculture,
Conservation, and Trade Act of 1990 (7 U.S.C. 5841(d)) is amended by
striking paragraph (4) and inserting the following:
``(4) unless otherwise prohibited by law, have the right to
make available on request, without charge and without regard to
the country from which the request originates, the genetic
material that the program assembles;''.
(b) Authorization of Appropriations.--Section 1635(b) of the Food,
Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 5844(b)) is
amended by striking ``1995'' and inserting ``1997''.
SEC. 833. NATIONAL AGRICULTURAL WEATHER INFORMATION SYSTEM.
Section 1641(c) of the Food, Agriculture, Conservation, and Trade
Act of 1990 (7 U.S.C. 5855(c)) is amended by striking ``1995'' and
inserting ``1997''.
[[Page 110 STAT. 1169]]
SEC. 834. LIVESTOCK PRODUCT SAFETY AND INSPECTION PROGRAM.
Section 1670(e) of the Food, Agriculture, Conservation, and Trade
Act of 1990 (7 U.S.C. 5923(e)) is amended by striking ``1995'' and
inserting ``1997''.
SEC. 835. PLANT GENOME MAPPING PROGRAM.
Section 1671(g) of the Food, Agriculture, Conservation, and Trade
Act of 1990 (7 U.S.C. 5924(g)) is amended by inserting ``for fiscal
years 1996 and 1997'' after ``appropriated''.
SEC. 836. CERTAIN SPECIALIZED RESEARCH PROGRAMS.
Subsections (d)(4), (e)(4), and (i) of section 1672 of the Food,
Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 5925) are
each amended by striking ``1995'' and inserting ``1997''.
SEC. 837. AGRICULTURAL TELECOMMUNICATIONS PROGRAM.
Section 1673(h) of the Food, Agriculture, Conservation, and Trade
Act of 1990 (7 U.S.C. 5926(h)) is amended by striking ``1995'' and
inserting ``1997''.
SEC. 838. NATIONAL CENTERS FOR AGRICULTURAL PRODUCT QUALITY RESEARCH.
(a) Purposes of National Centers.--Section 1675(a) of the Food,
Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 5928(a)) is
amended--
(1) by redesignating paragraphs (5) and (6) as paragraphs
(6) and (7), respectively; and
(2) by inserting after paragraph (4) the following:
``(5) enhance agricultural competitiveness through product
quality research and technology implementation;''.
(b) Regional Basis of Centers.--Section 1675(b) of the Food,
Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 5928(b)) is
amended by striking paragraph (1) and inserting the following:
``(1) Regional basis.--The centers shall be regionally based
units that conduct a broad spectrum of research, development,
and education programs to enhance the competitiveness, quality,
safety and wholesomeness of agricultural products.''.
(c) Program Plan and Review.--Section 1675(d) of the Food,
Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 5928(b)) is
amended--
(1) in paragraph (1), by striking the second sentence; and
(2) in paragraph (2), by striking ``, but not less'' and all
that follows through ``the Secretary''.
(d) Authorization of Appropriations.--Section 1675(g)(1) of the
Food, Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C.
5928(g)(1)) is amended by striking ``1995'' and inserting ``1997''.
SEC. 839. RED MEAT SAFETY RESEARCH CENTER.
Section 1676 of the Food, Agriculture, Conservation, and Trade Act
of 1990 (7 U.S.C. 5929) is amended to read as follows:
``SEC. 1676. RED MEAT SAFETY RESEARCH CENTER.
``(a) <<NOTE: Grants.>> Establishment of Center.--The Secretary of
Agriculture shall award a grant, on a competitive basis, to a research
facility described in subsection (b) to establish a red meat safety
research center.
[[Page 110 STAT. 1170]]
``(b) Eligible Research Facility Described.--A research facility
eligible for a grant under subsection (a) is a research facility that--
``(1) is part of a land-grant college or university, or
other federally supported agricultural research facility,
located in close proximity to a livestock slaughter and
processing facility; and
``(2) is staffed by professionals with a wide diversity of
scientific expertise covering all aspects of meat science.
``(c) Research Conducted.--The red meat safety research center
established under subsection (a) shall carry out research related to
general food safety, including--
``(1) the development of intervention strategies that reduce
microbiological contamination of carcass surfaces;
``(2) research regarding microbiological mapping of carcass
surfaces; and
``(3) the development of model hazard analysis and critical
control point plans.
``(d) Administration of Funds.--The Secretary of Agriculture shall
administer funds appropriated to carry out this section.
``(e) Authorization of Appropriations.--There are authorized to be
appropriated such sums as are necessary for fiscal year 1997 to carry
out this section.''.
SEC. 840. INDIAN RESERVATION EXTENSION AGENT PROGRAM.
Section 1677 of the Food, Agriculture, Conservation, and Trade Act
of 1990 (7 U.S.C. 5930) is amended--
(1) by redesignating subsection (f) as subsection (g); and
(2) by inserting after subsection (e) the following:
``(f) Reduced Regulatory Burden.--On a determination by the
Secretary of Agriculture that a program carried out under this section
has been satisfactorily administered for not less than 2 years, the
Secretary shall implement a reduced reapplication process for the
continued operation of the program in order to reduce regulatory burdens
on participating university and tribal entities.''.
SEC. 841. ASSISTIVE TECHNOLOGY PROGRAM FOR FARMERS WITH DISABILITIES.
Section 1680 of the Food, Agriculture, Conservation, and Trade Act
of 1990 (7 U.S.C. 5933) is amended--
(1) in subsection (a)(6)(B), by striking ``1996'' and
inserting ``1997''; and
(2) in subsection (b)(2), by striking ``1996'' and inserting
``1997''.
SEC. 842. NATIONAL RURAL INFORMATION CENTER CLEARINGHOUSE.
Section 2381(e) of the Food, Agriculture, Conservation, and Trade
Act of 1990 (7 U.S.C. 3125b(e)) is amended by striking ``1995'' and
inserting ``1997''.
SEC. 843. GLOBAL CLIMATE CHANGE.
Section 2412 of the Food, Agriculture, Conservation, and Trade Act
of 1990 (7 U.S.C. 6710) is amended by striking ``1996'' and inserting
``1997''.
[[Page 110 STAT. 1171]]
Subtitle C--Repeal of Certain Activities and Authorities
SEC. 851. SUBCOMMITTEE ON FOOD, AGRICULTURAL, AND FORESTRY RESEARCH.
Section 401(h) of the National Science and Technology Policy,
Organization, and Priorities Act of 1976 (42 U.S.C. 6651(h)) is amended
by striking the second through fifth sentences.
SEC. 852. JOINT COUNCIL ON FOOD AND AGRICULTURAL SCIENCES.
(a) Repeal.--Section 1407 of the National Agricultural Research,
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3122) is repealed.
(b) Conforming Amendments.--
(1) Section 1405 of the National Agricultural Research,
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3121) is
amended--
(A) in paragraph (5), by striking ``Joint Council,
Advisory Board,'' and inserting ``Advisory Board''; and
(B) in paragraph (11), by striking ``the Joint
Council,''.
(2) Section 1410(2) of the National Agricultural Research,
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3125(2)) is
amended by striking ``the recommendations of the Joint Council
developed under section 1407(f),''.
(3) Section 1412 of the National Agricultural Research,
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3127) is
amended--
(A) in the section heading, by striking ``the joint
council, advisory board,'' and inserting ``advisory
board'';
(B) in subsection (a)--
(i) by striking ``Joint Council, the Advisory
Board,'' and inserting ``Advisory Board'';
(ii) by striking ``the cochairpersons of the
Joint Council and'' each place it appears; and
(iii) in paragraph (2), by striking ``one
shall serve as the executive secretary to the
Joint Council, one shall serve as the executive
secretary to the Advisory Board,'' and inserting
``one shall serve as the executive secretary to
the Advisory Board''; and
(C) in subsections (b) and (c), by striking ``Joint
Council, Advisory Board,'' each place it appears and
inserting ``Advisory Board''.
(4) Section 1413 of the National Agricultural Research,
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3128) is
amended--
(A) in subsection (a), by striking ``Joint Council,
the Advisory Board,'' and inserting ``Advisory Board'';
and
(B) in subsection (b), by striking ``Joint Council,
Advisory Board,'' and inserting ``Advisory Board''.
(5) Section 1434(c) of the National Agricultural Research,
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3196(c)) is
amended--
(A) in the second sentence, by striking ``Joint
Council, the Advisory Board,'' and inserting ``Advisory
Board''; and
[[Page 110 STAT. 1172]]
(B) in the fourth sentence, by striking ``the Joint
Council,''.
SEC. 853. AGRICULTURAL SCIENCE AND TECHNOLOGY REVIEW BOARD.
(a) Repeal.--Section 1408A of the National Agricultural Research,
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3123a) is repealed.
(b) Conforming Amendments.--
(1) Section 1404 of the National Agricultural Research,
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3103) is
amended--
(A) in paragraph (16)(F), by adding ``and'' at the
end;
(B) in paragraph (17), by striking ``; and'' at the
end and inserting a period; and
(C) by striking paragraph (18).
(2) Section 1405(12) of the National Agricultural Research,
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3121(12))
is amended by striking ``, after coordination with the
Technology Board,''.
(3) Section 1410(2) of the National Agricultural Research,
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3125(2))
(as amended by section 802(b)(2)) is amended by striking ``and
the recommendations of the Technology Board developed under
section 1408A(d)''.
(4) Section 1412 of the National Agricultural Research,
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3127) (as
amended by section 852(b)(3)) is amended--
(A) in the section heading, by striking ``and
technology board'';
(B) in subsection (a)--
(i) by striking ``and the Technology Board''
each place it appears; and
(ii) in paragraph (2), by striking ``and one
shall serve as the executive secretary to the
Technology Board''; and
(C) in subsections (b) and (c), by striking ``and
Technology Board'' each place it appears.
(5) Section 1413 of the National Agricultural Research,
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3128) (as
amended by section 852(b)(4)) is amended--
(A) in subsection (a), by striking ``or the
Technology Board''; and
(B) in subsection (b), by striking ``and the
Technology Board''.
SEC. 854. ANIMAL HEALTH SCIENCE RESEARCH ADVISORY BOARD.
Section 1432 of the National Agricultural Research, Extension, and
Teaching Policy Act of 1977 (7 U.S.C. 3194) is repealed.
SEC. 855. RESIDENT INSTRUCTION PROGRAM AT 1890 LAND-GRANT COLLEGES.
Section 1446 of the National Agricultural Research, Extension, and
Teaching Policy Act of 1977 (7 U.S.C. 3222a) is repealed.
SEC. 856. GRANTS TO STATES FOR INTERNATIONAL TRADE DEVELOPMENT CENTERS.
Section 1458A of the National Agricultural Research, Extension, and
Teaching Policy Act of 1977 (7 U.S.C. 3292) is repealed.
[[Page 110 STAT. 1173]]
SEC. 857. RANGELAND RESEARCH.
(a) Reports.--Section 1481 of the National Agricultural Research,
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3334) is repealed.
(b) Advisory Board.--Section 1482 of the National Agricultural
Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3335) is
repealed.
SEC. 858. COMPOSTING RESEARCH AND EXTENSION PROGRAM.
Section 1456 of the Food, Agriculture, Conservation, and Trade Act
of 1990 (7 U.S.C. 3130) is repealed.
SEC. 859. EDUCATION PROGRAM REGARDING HANDLING OF AGRICULTURAL CHEMICALS
AND AGRICULTURAL CHEMICAL CONTAINERS.
(a) Repeal.--Section 1499A of the Food, Agriculture, Conservation,
and Trade Act of 1990 (7 U.S.C. 3125c) is repealed.
(b) Conforming Amendment.--Section 1499(b) of the Food, Agriculture,
Conservation, and Trade Act of 1990 (7 U.S.C. 5506(b)) is amended by
striking ``and section 1499A''.
SEC. 860. PROGRAM ADMINISTRATION REGARDING SUSTAINABLE AGRICULTURE
RESEARCH AND EDUCATION.
(a) Reporting Requirement.--Section 1622 of the Food, Agriculture,
Conservation, and Trade Act of 1990 (7 U.S.C. 5812) is amended by
striking subsection (b).
(b) Advisory Council.--Section 1622 of the Food, Agriculture,
Conservation, and Trade Act of 1990 (7 U.S.C. 5812) is amended--
(1) in subsection (a)--
(A) by striking paragraph (2);
(B) in paragraph (3), by striking ``subsection (e)''
and inserting ``subsection (b)''; and
(C) by redesignating paragraphs (3) and (4) as
paragraphs (2) and (3), respectively;
(2) by striking subsections (c) and (d);
(3) by redesignating subsection (e) as subsection (b); and
(4) in subsection (b)(2) (as so redesignated)--
(A) by striking subparagraph (A); and
(B) by redesignating subparagraphs (B) through (F)
as subparagraphs (A) through (E), respectively.
(c) Conforming Amendments.--
(1) Section 1619(b) of the Food, Agriculture, Conservation,
and Trade Act of 1990 (7 U.S.C. 5801(b)) is amended--
(A) by striking paragraph (7); and
(B) by redesignating paragraphs (8), (9), and (10)
as paragraphs (7), (8), and (9), respectively.
(2) Section 1621(c) of the Food, Agriculture, Conservation,
and Trade Act of 1990 (7 U.S.C. 5811(c)) is amended--
(A) in paragraph (1)--
(i) by striking subparagraph (A); and
(ii) by redesignating subparagraphs (B)
through (E) as subparagraphs (A) through (D),
respectively; and
(B) in paragraph (2)--
(i) by striking subparagraph (A); and
(ii) by redesignating subparagraphs (B)
through (F) as subparagraphs (A) through (E),
respectively.
[[Page 110 STAT. 1174]]
(3) Section 1628(b) of the Food, Agriculture, Conservation,
and Trade Act of 1990 (7 U.S.C. 5831(b)) is amended by striking
``Advisory Council, the Soil Conservation Service,'' and
inserting ``Natural Resources Conservation Service''.
SEC. 861. RESEARCH REGARDING PRODUCTION, PREPARATION, PROCESSING,
HANDLING, AND STORAGE OF AGRICULTURAL PRODUCTS.
Subtitle E of title XVI of the Food, Agriculture, Conservation, and
Trade Act of 1990 (7 U.S.C. 5871 et seq.) is repealed.
SEC. 862. PLANT AND ANIMAL PEST AND DISEASE CONTROL PROGRAM.
(a) Repeal.--Subtitle F of title XVI of the Food, Agriculture,
Conservation, and Trade Act of 1990 (7 U.S.C. 5881 et seq.) is repealed.
(b) Conforming Amendments.--
(1) Section 28(b)(2)(A) of the Federal Insecticide,
Fungicide, and Rodenticide Act (7 U.S.C. 136w-3(b)(2)(A)) is
amended by striking ``and the information required by section
1651 of the Food, Agriculture, Conservation, and Trade Act of
1990''.
(2) Section 1627(a)(3) of the Food, Agriculture,
Conservation, and Trade Act of 1990 (7 U.S.C. 5821(a)(3)) is
amended by striking ``and section 1650''.
(3) Section 1628 of the Food, Agriculture, Conservation, and
Trade Act of 1990 (7 U.S.C. 5831) is amended by striking
``section 1650,'' each place it appears in subsections (a) and
(d).
(4) Section 1629 of the Food, Agriculture, Conservation, and
Trade Act of 1990 (7 U.S.C. 5832) is amended by striking
``section 1650,'' each place it appears in subsections (f) and
(g)(11).
SEC. 863. CERTAIN SPECIALIZED RESEARCH PROGRAMS.
Section 1672 of the Food, Agriculture, Conservation, and Trade Act
of 1990 (7 U.S.C. 5925) is amended--
(1) by striking subsections (a), (f), (g), (h), and (j); and
(2) by redesignating subsections (i) and (k) as subsections
(f) and (g), respectively.
SEC. 864. COMMISSION ON AGRICULTURAL RESEARCH FACILITIES.
Section 1674 of the Food, Agriculture, Conservation, and Trade Act
of 1990 (7 U.S.C. 5927) is repealed.
SEC. 865. SPECIAL GRANT TO STUDY CONSTRAINTS ON AGRICULTURAL TRADE.
Section 1678 of the Food, Agriculture, Conservation, and Trade Act
of 1990 (7 U.S.C. 5931) is repealed.
SEC. 866. PILOT PROJECT TO COORDINATE FOOD AND NUTRITION EDUCATION
PROGRAMS.
Section 1679 of the Food, Agriculture, Conservation, and Trade Act
of 1990 (7 U.S.C. 5932) is repealed.
SEC. 867. DEMONSTRATION AREAS FOR RURAL ECONOMIC DEVELOPMENT.
Section 2348 of the Food, Agriculture, Conservation, and Trade Act
of 1990 (7 U.S.C. 2662a) is repealed.
[[Page 110 STAT. 1175]]
SEC. 868. TECHNICAL ADVISORY COMMITTEE REGARDING GLOBAL CLIMATE CHANGE.
Section 2404 of the Food, Agriculture, Conservation, and Trade Act
of 1990 (7 U.S.C. 6703) is repealed.
SEC. 869. COMMITTEE OF NINE UNDER HATCH ACT OF 1887.
Section 3(c)3 of the Act of March 2, 1887 (commonly known as the
``Hatch Act of 1887''; 7 U.S.C. 361c(c)3) is amended by striking ``, and
shall be used'' and all that follows through ``by this paragraph''.
SEC. 870. COTTON CROP REPORTS.
The Act of May 3, 1924 (43 Stat. 115, chapter 149; 7 U.S.C. 475), is
repealed.
SEC. 871. RURAL ECONOMIC AND BUSINESS DEVELOPMENT AND ADDITIONAL
RESEARCH GRANTS UNDER TITLE V OF RURAL DEVELOPMENT ACT OF
1972.
Section 502 of the Rural Development Act of 1972 (7 U.S.C. 2662) is
amended by striking subsections (g) and (j).
SEC. 872. HUMAN NUTRITION RESEARCH.
Section 1452 of the National Agricultural Research, Extension, and
Teaching Policy Act Amendments of 1985 (Public Law 99-198; 7 U.S.C. 3173
note) is repealed.
SEC. 873. GRANTS TO UPGRADE 1890 LAND-GRANT COLLEGE EXTENSION
FACILITIES.
Section 1416 of the National Agricultural Research, Extension, and
Teaching Policy Act Amendments of 1981 (7 U.S.C. 3224) is repealed.
SEC. 874. INDIAN SUBSISTENCE FARMING DEMONSTRATION GRANT PROGRAM.
Subtitle C of title IX of the Food, Agriculture, Conservation, and
Trade Act Amendments of 1991 (Public Law 102-237; 7 U.S.C. 5930 note) is
repealed.
Subtitle D--Miscellaneous Research Provisions
SEC. 881. CRITICAL AGRICULTURAL MATERIALS RESEARCH.
(a) Reports.--Section 4 of the Critical Agricultural Materials Act
(7 U.S.C. 178b) is amended--
(1) by striking subsection (g); and
(2) by redesignating subsection (h) as subsection (g).
(b) Authorization of Appropriations.--Section 16(a) of the Critical
Agricultural Materials Act (7 U.S.C. 178n(a)) is amended by striking
``1995'' and inserting ``1997''.
SEC. 882. MEMORANDUM OF AGREEMENT REGARDING 1994 INSTITUTIONS.
Section 533 of the Equity in Educational Land-Grant Status Act of
1994 (Public Law 103-382; 7 U.S.C. 301 note) is amended by adding at the
end the following:
``(d) <<NOTE: Native Americans.>> Memorandum of Agreement.--Not
later than January 6, 1997, the Secretary shall develop and implement a
formal memo
[[Page 110 STAT. 1176]]
randum of agreement with the 1994 Institutions to establish programs to
ensure that tribally controlled colleges and Native American communities
equitably participate in Department of Agriculture employment, programs,
services, and resources.''.
SEC. 883. SMITH-LEVER ACT FUNDING FOR 1890 LAND-GRANT COLLEGES,
INCLUDING TUSKEGEE UNIVERSITY.
(a) Eligibility for Funds.--Section 3(d) of the Act of May 8, 1914
(commonly known as the ``Smith-Lever Act''; 7 U.S.C. 343(d)), is amended
by adding at the end the following: ``A college or university eligible
to receive funds under the Act of August 30, 1890 (7 U.S.C. 321 et
seq.), including Tuskegee University, may apply for and receive directly
from the Secretary of Agriculture--
``(1) amounts made available under this subsection after
September 30, 1995, to carry out programs or initiatives for
which no funds were made available under this subsection for
fiscal year 1995, or any previous fiscal year, as determined by
the Secretary; and
``(2) amounts made available after September 30, 1995, to
carry out programs or initiatives funded under this subsection
prior to that date that are in excess of the highest amount made
available for the programs or initiatives under this subsection
for fiscal year 1995, or any previous fiscal year, as determined
by the Secretary.''.
(b) Conforming Amendment.--The third sentence of section 1444(a) of
the National Agricultural Research, Extension, and Teaching Policy Act
of 1977 (7 U.S.C. 3221(a)) is amended by inserting before the period at
the end the following: ``, except that for the purpose of this
calculation, the total appropriations shall not include amounts made
available after September 30, 1995, under section 3(d) of that Act (7
U.S.C. 343(d)), to carry out programs or initiatives for which no funds
were made available under section 3(d) of that Act for fiscal year 1995,
or any previous fiscal year, as determined by the Secretary, and shall
not include amounts made available after September 30, 1995, to carry
out programs or initiatives funded under section 3(d) of that Act prior
to that date that are in excess of the highest amount made available for
the programs or initiatives for fiscal year 1995, or any previous fiscal
year, as determined by the Secretary''.
SEC. 884. AGRICULTURAL RESEARCH FACILITIES.
(a) Research Facilities.--The Research Facilities Act (7 U.S.C. 390
et seq.) is amended to read as follows:
``SECTION 1. <<NOTE: 7 USC 390 note.>> SHORT TITLE.
``This Act may be cited as the `Research Facilities Act'.
``SEC. 2. <<NOTE: 7 USC 390.>> DEFINITIONS.
``In this Act:
``(1) Agricultural research facility.--The term
`agricultural research facility' means a proposed facility for
research in food and agricultural sciences for which Federal
funds are requested by a college, university, or nonprofit
institution to assist in the construction, alteration,
acquisition, modernization, renovation, or remodeling of the
facility.
``(2) Congressional agriculture committees.--The term
`congressional agriculture committees' means the Committee
[[Page 110 STAT. 1177]]
on Appropriations and the Committee on Agriculture of the House
of Representatives and the Committee on Appropriations and the
Committee on Agriculture, Nutrition, and Forestry of the Senate.
``(3) Food and agricultural sciences.--The term `food and
agricultural sciences' means--
``(A) agriculture, including soil and water
conservation and use, the use of organic materials to
improve soil tilth and fertility, plant and animal
production and protection, and plant and animal health;
``(B) the processing, distribution, marketing, and
utilization of food and agricultural products;
``(C) forestry, including range management,
production of forest and range products, multiple use of
forests and rangelands, and urban forestry;
``(D) aquaculture (as defined in section 1404(3) of
the National Agricultural Research, Extension, and
Teaching Policy Act of 1977 (7 U.S.C. 3103(3));
``(E) human nutrition;
``(F) production inputs, such as energy, to improve
productivity; and
``(G) germ plasm collection and preservation.
``(4) Secretary.--The term `Secretary' means the Secretary
of Agriculture.
``(5) Task force.--The term `task force' means the Strategic
Planning Task Force established under section 4.
``SEC. 3. <<NOTE: 7 USC 390a.>> REVIEW PROCESS.
``(a) Submission to Secretary.--Each proposal for an agricultural
research facility shall be submitted to the Secretary for review. The
Secretary shall review the proposals in the order in which the proposals
are received.
``(b) Application Process.--In consultation with the congressional
agriculture committees, the Secretary shall establish an application
process for the submission of proposals for agricultural research
facilities.
``(c) Criteria for Approval.--
``(1) Determination by secretary.--With respect to each
proposal for an agricultural research facility submitted under
subsection (a), the Secretary shall determine whether the
proposal meets the criteria set forth in paragraph (2).
``(2) Criteria.--A proposal for an agricultural research
facility shall meet the following criteria:
``(A) Non-federal share.--The proposal shall certify
the availability of at least a 50 percent non-Federal
share of the cost of the facility. The non-Federal share
shall be paid in cash and may include funding from
private sources or from units of State or local
government.
``(B) Nonduplication of facilities.--The proposal
shall demonstrate how the agricultural research facility
would be complementary to, and not duplicative of,
facilities of colleges, universities, and nonprofit
institutions, and facilities of the Agricultural
Research Service, within the State and region.
``(C) National research priorities.--The proposal
shall demonstrate how the agricultural research facility
would serve--
[[Page 110 STAT. 1178]]
``(i) 1 or more of the national research
policies and priorities set forth in section 1402
of the National Agricultural Research, Extension,
and Teaching Policy Act of 1977 (7 U.S.C. 3101);
and
``(ii) regional needs.
``(D) Long-term support.--The proposal shall
demonstrate that the recipient college, university, or
nonprofit institution has the ability and commitment to
support the long-term, ongoing operating costs of--
``(i) the agricultural research facility after
the facility is completed; and
``(ii) each program to be based at the
facility.
``(d) Evaluation of Proposals.--Not later than 90 days after
receiving a proposal under subsection (a), the Secretary shall--
``(1) evaluate and assess the merits of the proposal,
including the extent to which the proposal meets the criteria
set forth in subsection (c); and
``(2) <<NOTE: Reports.>> report to the congressional
agriculture committees on the results of the evaluation and
assessment.
``SEC. 4. <<NOTE: 7 USC 390b.>> TASK FORCE ON 10-YEAR STRATEGIC PLAN
FOR AGRICULTURAL RESEARCH FACILITIES.
``(a) Establishment.--Not later than 6 months after the date of
enactment of the Federal Agriculture Improvement and Reform Act of 1996,
the Secretary shall establish a task force, to be known as the
`Strategic Planning Task Force'. The task force shall be comprised of 15
members.
``(b) Composition.--The Secretary shall select the members of the
task force from a list of individuals recommended by the Advisory Board
established under section 1408 of the National Agricultural Research,
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3123). In
submitting the list to the Secretary, the Board may recommend for
selection individuals (including members of the Advisory Board) who have
expertise in facilities development, modernization, construction,
consolidation, and closure.
``(c) Duties.--The task force shall review all currently operating
agricultural research facilities constructed in whole or in part with
Federal funds, and all planned agricultural research facilities proposed
to be constructed with Federal funds, pursuant to criteria established
by the Secretary, to ensure that a comprehensive research capacity is
maintained.
``(d) 10-Year Strategic Plan.--Not later than 2 years after the task
force is established, the task force shall prepare and submit to the
Secretary and the congressional agriculture committees a 10-year
strategic plan, reflecting both national and regional perspectives, for
development, modernization, construction, consolidation, and closure of
Federal agricultural research facilities and agricultural research
facilities proposed to be constructed with Federal funds.
``(e) Applicability of Federal Advisory Committee Act.--
``(1) Public meetings.--All meetings of the task force shall
be publicly announced in advance and shall be open to the
public. <<NOTE: Records.>> Detailed minutes of meetings and
other appropriate records of the activities of the task force
shall be kept and made available to the public on request.
``(2) Exemption.--The Federal Advisory Committee Act (5
U.S.C. App.) and title XVIII of the Food and Agriculture Act
[[Page 110 STAT. 1179]]
of 1977 (7 U.S.C. 2281 et seq.) shall not apply to the task
force.
``(f) Definition of Agricultural Research Facility.--Notwithstanding
section 2(1), in this section the term `agricultural research facility'
means a facility for research in food and agricultural sciences.
``SEC. 5. <<NOTE: 7 USC 390c.>> APPLICABILITY OF FEDERAL ADVISORY
COMMITTEE ACT.
``The Federal Advisory Committee Act (5 U.S.C. App.) and title XVIII
of the Food and Agriculture Act of 1977 (7 U.S.C. 2281 et seq.) shall
not apply to a panel or board created solely for the purpose of
reviewing applications or proposals submitted under this Act.
``SEC. 6. <<NOTE: 7 USC 390d.>> AUTHORIZATION OF APPROPRIATIONS.
``(a) In General.--Subject to subsection (b), there are authorized
to be appropriated such sums as are necessary for fiscal years 1996 and
1997 for the study, plan, design, structure, and related costs of
agricultural research facilities under this Act.
``(b) Allowable Administrative Costs.--Not more than 3 percent of
the funds made available for any project for an agricultural research
facility shall be available for administration of the project.''.
(b) <<NOTE: 7 USC 390 note.>> Application of Amendment.--The
amendment made by subsection (a), other than section 4 of the Research
Facilities Act (as amended by subsection (a)), shall not apply to any
project for an agricultural research facility for which funds have been
made available for a feasibility study or for any phase of the project
prior to October 1, 1995.
(c) Authorization of Appropriations for Federal Facilities.--Section
1431 of the National Agricultural Research, Extension, and Teaching
Policy Act Amendments of 1985 (Public Law 99-198; 99 Stat. 1556) is
amended--
(1) in subsection (a)--
(A) by striking ``(a)''; and
(B) by striking ``1995'' and inserting ``1997''; and
(2) by striking subsection (b).
(d) Conforming Amendment.--Section 1463(a) of the National
Agricultural Research, Extension, and Teaching Policy Act of 1977 (7
U.S.C. 3311(a)) is amended by striking ``1416,''.
SEC. 885. NATIONAL COMPETITIVE RESEARCH INITIATIVE.
(a) Authorization of Appropriations for Competitive Grants.--
Subsection (b)(10) of the Competitive, Special, and Facilities Research
Grant Act (7 U.S.C. 450i(b)(10)) is amended--
(1) by striking ``fiscal year 1995'' and inserting ``each of
fiscal years 1995 through 1997''; and
(2) in subparagraph (B), by striking ``20 percent'' and
inserting ``40 percent''.
(b) Availability of Funds.--Subsection (b) of the Competitive,
Special, and Facilities Research Grant Act (7 U.S.C. 450i(b)) is amended
by adding at the end the following:
``(11) Availability of Funds.--Funds made available under paragraph
(10) shall be available for obligation for a 2-year period beginning on
October 1 of the fiscal year for which the funds are made available.''.
[[Page 110 STAT. 1180]]
SEC. 886. RURAL DEVELOPMENT RESEARCH AND EDUCATION.
Section 502(a) of the Rural Development Act of 1972 (7 U.S.C.
2662(a)) is amended by inserting after the first sentence the following:
``The rural development extension programs shall also promote
coordinated and integrated rural community initiatives that advance and
empower capacity building through leadership development,
entrepreneurship, business development and management training, and
strategic planning to increase jobs, income, and quality of life in
rural communities.''.
SEC. 887. DAIRY GOAT RESEARCH PROGRAM.
Section 1432(b)(5) of the National Agricultural Research, Extension,
and Teaching Policy Act Amendments of 1981 (Public Law 97-98; 7 U.S.C.
3222 note) is amended by striking ``1995'' and inserting ``1997''.
SEC. 888. COMPETITIVE GRANTS FOR RESEARCH TO ERADICATE AND CONTROL BROWN
CITRUS APHID AND CITRUS TRISTEZA VIRUS.
Section 1672 of the Food, Agriculture, Conservation, and Trade Act
of 1990 (7 U.S.C. 5925) (as amended by section 863) is amended by
inserting before subsection (b) the following:
``(a) Brown Citrus Aphid and Citrus Tristeza Virus.--
``(1) Research grants authorized.--The Secretary of
Agriculture may make competitive grants available to support
research for the purpose of--
``(A) developing methods to eradicate the brown
citrus aphid and the citrus tristeza virus from citrus
crops grown in the United States; or
``(B) adapting citrus crops grown in the United
States to the brown citrus aphid and the citrus tristeza
virus.
``(2) Method of providing grants.--Grants authorized under
this subsection shall be made in the same manner, and shall be
subject to the same conditions, as provided for competitive
grants under the Competitive, Special, and Facilities Research
Grant Act (7 U.S.C. 450i).
``(3) Authorization of appropriations.--There are authorized
to be appropriated to carry out this subsection $3,000,000 for
fiscal year 1997.''.
SEC. 889. <<NOTE: Arkansas.>> STUTTGART NATIONAL AQUACULTURE RESEARCH
CENTER.
(a) Transfer of Functions to Secretary of Agriculture.--
(1) Purpose.--The first section of Public Law 85-342 (16
U.S.C. 778) is amended--
(A) by striking ``Secretary of the Interior'' and
all that follows through ``directed to'' and inserting
``Secretary of Agriculture shall'';
(B) by striking ``an experiment station or
stations'' and inserting ``1 or more centers''; and
(C) in paragraph (5), by striking ``Department of
Agriculture'' and inserting ``Secretary of the
Interior''.
(2) Authority.--Section 2 of Public Law 85-342 (16 U.S.C.
778a) is amended by striking ``, the Secretary'' and all that
follows through ``authorized'' and inserting ``, the Secretary
of Agriculture is authorized''.
(3) Assistance.--Section 3 of Public Law 85-342 (16 U.S.C.
778b) is amended--
[[Page 110 STAT. 1181]]
(A) by striking ``Secretary of the Interior'' and
inserting ``Secretary of Agriculture''; and
(B) by striking ``Department of Agriculture'' and
inserting ``Secretary of the Interior''.
(b) Transfer of Fish Farming Experimental Laboratory to Department
of Agriculture.--
(1) Designation of stuttgart national aquaculture research
center.--
(A) In general.--The Fish Farming Experimental
Laboratory in Stuttgart, Arkansas (including the
facilities in Kelso, Arkansas), shall be known and
designated as the ``Stuttgart National Aquaculture
Research Center''.
(B) References.--Any reference in a law, map,
regulation, document, paper, or other record of the
United States to the laboratory referred to in
subparagraph (A) shall be deemed to be a reference to
the ``Stuttgart National Aquaculture Research Center''.
(2) Transfer of laboratory to department of agriculture.--
Subject to section 1531 of title 31, United States Code, not
later than 90 days after the date of enactment of this Act,
there are transferred to the Department of Agriculture--
(A) the personnel employed in connection with the
laboratory referred to in paragraph (1)(A);
(B) the assets, liabilities, contracts, and real and
personal property of the laboratory;
(C) the records of the laboratory; and
(D) the unexpended balance of appropriations,
authorizations, allocations, and other funds employed in
connection with, held in connection with, arising from,
available to, or to be made available in connection with
the laboratory.
(3) Nonduplication of facilities.--The research center
referred to in paragraph (1)(A) shall be complementary to, and
not duplicative of, facilities of colleges, universities, and
nonprofit institutions, and facilities of the Agricultural
Research Service, within the State and region, as determined by
the Administrator of the Service.
SEC. 890. EXPANSION OF AUTHORITIES RELATED TO NATIONAL ARBORETUM.
(a) Solicitation of Gifts, Benefits, and Devises.--The first
sentence of section 5 of the Act of March 4, 1927 (20 U.S.C. 195), is
amended by inserting ``solicit,'' after ``authorized to''.
(b) Concessions, Fees, and Voluntary Services.--The Act of March 4,
1927 (20 U.S.C. 191 et seq.), is amended by adding at the end the
following:
``SEC. 6. <<NOTE: 20 USC 196.>> CONCESSIONS, FEES, AND VOLUNTARY
SERVICES.
``(a) In General.--Notwithstanding the Federal Property and
Administrative Services Act of 1949 (40 U.S.C. 471 et seq.) and section
321 of the Act of June 30, 1932 (40 U.S.C. 303b), the Secretary of
Agriculture, in furtherance of the mission of the National Arboretum,
may--
``(1) negotiate agreements granting concessions at the
National Arboretum to nonprofit scientific or educational
organizations the interests of which are complementary to the
mission of the National Arboretum, except that the net proceeds
[[Page 110 STAT. 1182]]
of the organizations from the concessions shall be used
exclusively for research and educational work for the benefit of
the National Arboretum;
``(2) provide by concession, on such terms as the Secretary
of Agriculture considers appropriate and necessary, for
commercial services for food, drink, and nursery sales, if an
agreement for a permanent concession under this paragraph is
negotiated with a qualified person submitting a proposal after
due consideration of all proposals received after the Secretary
of Agriculture provides reasonable public notice of the intent
of the Secretary to enter into such an agreement;
``(3) dispose of excess property, including excess plants
and fish, in a manner designed to maximize revenue from any sale
of the property, including by way of public auction, except that
this paragraph shall not apply to the free dissemination of new
varieties of seeds and germ plasm in accordance with section 520
of the Revised Statutes (commonly known as the `Department of
Agriculture Organic Act of 1862') (7 U.S.C. 2201);
``(4) charge such fees as the Secretary of Agriculture
considers reasonable for temporary use by individuals or groups
of National Arboretum facilities and grounds for any purpose
consistent with the mission of the National Arboretum;
``(5) charge such fees as the Secretary of Agriculture
considers reasonable for the use of the National Arboretum for
commercial photography or cinematography;
``(6) publish, in print and electronically and without
regard to laws relating to printing by the Federal Government,
informational brochures, books, and other publications
concerning the National Arboretum or the collections of the
Arboretum; and
``(7) license use of the National Arboretum name and logo
for public service or commercial uses.
``(b) Use of Funds.--Any funds received or collected by the
Secretary of Agriculture as a result of activities described in
subsection (a) shall be retained in a special fund in the Treasury for
the use and benefit of the National Arboretum as the Secretary of
Agriculture considers appropriate.
``(c) Acceptance of Voluntary Services.--The Secretary of
Agriculture may accept the voluntary services of organizations described
in subsection (a)(1), and the voluntary services of individuals
(including employees of the National Arboretum), for the benefit of the
National Arboretum.''.
SEC. 891. <<NOTE: Alabama.>> TRANSFER OF AQUACULTURAL RESEARCH CENTER.
(a) Transfer of Fish Culture Laboratory to Department of
Agriculture.--
(1) Designation of claude harris national aquacultural
research center.--
(A) In general.--The Southeastern Fish Culture
Laboratory in Marion, Alabama, shall be known and
designated as the ``Claude Harris National Aquacultural
Research Center''.
(B) References.--Any reference in a law, map,
regulation, document, paper, or other record of the
United States to the laboratory referred to in
subparagraph (A) shall
[[Page 110 STAT. 1183]]
be deemed to be a reference to the ``Claude Harris
National Aquacultural Research Center''.
(2) Transfer of laboratory to department of agriculture.--
Subject to section 1531 of title 31, United States Code, not
later than 90 days after the date of enactment of this Act, the
Secretary of the Interior may transfer, in whole or in part, to
the Department of Agriculture, with the consent of the Secretary
of Agriculture--
(A) the personnel employed in connection with the
laboratory referred to in paragraph (1);
(B) the assets, liabilities, contracts, and real and
personal property of the laboratory;
(C) the records of the laboratory; and
(D) the unexpended balance of appropriations,
authorizations, allocations, and other funds employed in
connection with, held in connection with, arising from,
available to, or to be made available in connection with
the laboratory.
(b) Nonduplication of Facilities.--The research center designated by
subsection (a) shall be complementary to, and not duplicative of,
facilities of colleges, universities, and nonprofit institutions, and
facilities of the Agricultural Research Service, within the State and
region, as determined by the Secretary of Agriculture.
SEC. 892. <<NOTE: 7 USC 5935.>> USE OF REMOTE SENSING DATA AND OTHER
DATA TO ANTICIPATE POTENTIAL FOOD, FEED, AND FIBER SHORTAGES
OR EXCESSES AND TO PROVIDE TIMELY INFORMATION TO ASSIST
FARMERS WITH PLANTING DECISIONS.
(a) Findings.--Congress finds that--
(1) remote sensing data can be useful to predict impending
famine problems and forest infestations in time to allow
remedial action;
(2) remote sensing data can inform the agricultural
community as to the condition of crops and the land that
sustains those crops; and
(3) remote sensing data and other data can be valuable, when
received on a timely basis, in determining the need for
additional plantings of a particular crop or a substitute crop.
(b) Information Development.--The Secretary of Agriculture and the
Administrator of the National Aeronautics and Space Administration,
maximizing private funding and involvement, shall provide farmers and
other interested persons with timely information, through remote
sensing, on crop conditions, fertilization and irrigation needs, pest
infiltration, soil conditions, projected food, feed, and fiber
production, and any other information available through remote sensing.
(c) Coordination.--The Secretary of Agriculture and the
Administrator of the National Aeronautics and Space Administration shall
jointly develop a proposal to provide farmers and other prospective
users with supply and demand information for food and fibers.
(d) Sunset.--The authorities provided by this section shall expire 5
years after the date of enactment of this Act.
SEC. 893. SENSE OF SENATE REGARDING METHYL BROMIDE ALTERNATIVE RESEARCH
AND EXTENSION ACTIVITIES.
It is the sense of the Senate that--
[[Page 110 STAT. 1184]]
(1) the Department of Agriculture should continue to make
methyl bromide alternative research and extension activities a
high priority of the Department; and
(2) the Department of Agriculture, the Environmental
Protection Agency, producer and processor organizations,
environmental organizations, and State agencies should continue
their dialogue on the risks and benefits of extending the 2001
phaseout deadline.
Subtitle E--Research Authority After Fiscal Year 1997
SEC. 897. AUTHORIZATION OF APPROPRIATIONS.
Subject to section 898, there are authorized to be appropriated for
fiscal years 1998 through 2002 such sums as are necessary to carry out
the agricultural research, extension, and education activities and
initiatives of the Department of Agriculture.
SEC. 898. ACTIVITIES SUBJECT TO AVAILABILITY OF APPROPRIATIONS.
During each of fiscal years 1998 through 2002, the Secretary of
Agriculture shall conduct only those agricultural research, extension,
and education activities and initiatives of the Department of
Agriculture for which funds are specifically provided for the fiscal
year in an appropriation Act.
TITLE IX--MISCELLANEOUS
Subtitle A <<NOTE: 7 USC 1901 note.>> --Commercial Transportation of
Equine for Slaughter
SEC. 901. FINDINGS.
Because of the unique and special needs of equine being transported
to slaughter, Congress finds that it is appropriate for the Secretary of
Agriculture to issue guidelines for the regulation of the commercial
transportation of equine for slaughter by persons regularly engaged in
that activity within the United States.
SEC. 902. DEFINITIONS.
In this subtitle:
(1) Commercial transportation.--The term ``commercial
transportation'' means the regular operation for profit of a
transport business that uses trucks, tractors, trailers, or
semitrailers, or any combination thereof, propelled or drawn by
mechanical power on any highway or public road.
(2) Equine for slaughter.--The term ``equine for slaughter''
means any member of the Equidae family being transferred to a
slaughter facility, including an assembly point, feedlot, or
stockyard.
(3) Person.--The term ``person''--
(A) means any individual, partnership, corporation,
or cooperative association that regularly engages in the
commercial transportation of equine for slaughter; but
(B) does not include any individual or other entity
referred to in subparagraph (A) that occasionally
transports
[[Page 110 STAT. 1185]]
equine for slaughter incidental to the principal
activity of the individual or other entity in production
agriculture.
SEC. 903. REGULATION OF COMMERCIAL TRANSPORTATION OF EQUINE FOR
SLAUGHTER.
(a) In General.--Subject to the availability of appropriations, the
Secretary of Agriculture may issue guidelines for the regulation of the
commercial transportation of equine for slaughter by persons regularly
engaged in that activity within the United States.
(b) Issues for Review.--In carrying out this section, the Secretary
of Agriculture shall review the food, water, and rest provided to equine
for slaughter in transit, the segregation of stallions from other equine
during transit, and such other issues as the Secretary considers
appropriate.
(c) Additional Authority.--In carrying out this section, the
Secretary of Agriculture may--
(1) require any person to maintain such records and reports
as the Secretary considers necessary;
(2) conduct such investigations and inspections as the
Secretary considers necessary; and
(3) establish and enforce appropriate and effective civil
penalties.
SEC. 904. LIMITATION OF AUTHORITY TO EQUINE FOR SLAUGHTER.
Nothing in this subtitle authorizes the Secretary of Agriculture to
regulate the routine or regular transportation, to slaughter or
elsewhere, of--
(1) livestock other than equine; or
(2) poultry.
SEC. 905. EFFECTIVE DATE.
This subtitle shall become effective on the first day of the first
month that begins 30 days or more after the date of enactment of this
Act.
Subtitle B--General Provisions
SEC. 911. INTERSTATE QUARANTINE.
The fourth sentence of section 8 of the Act of August 20, 1912 (7
U.S.C. 161), is amended by inserting after ``Provided, That'' the
following: ``if the Secretary of Agriculture determines under this
section that it is necessary to quarantine a State entirely comprised of
islands, the Secretary of Agriculture, in implementing the restrictions
authorized under this section, shall give consideration to enhancing
passenger movement and commerce on and between islands in the State:
Provided further, That''.
SEC. 912. COTTON CLASSIFICATION SERVICES.
(a) Extension of Authorization.--The first sentence of section 3a of
the Act of March 3, 1927 (commonly known as the ``Cotton Statistics and
Estimates Act'') (7 U.S.C. 473a), is amended by striking ``1996'' and
inserting ``2002''.
(b) <<NOTE: Missouri.>> Cotton Classing Office Locations.--Section
4 of the Act of March 3, 1927 (commonly known as the ``Cotton Statistics
and Estimates Act'') (7 U.S.C. 474), is amended by adding at the end the
following: ``The Secretary of Agriculture shall maintain
[[Page 110 STAT. 1186]]
until at least January 1, 1999, all cotton classing office locations in
the State of Missouri that existed on January 1, 1996.''.
SEC. 913. PLANT VARIETY PROTECTION FOR CERTAIN TUBER PROPAGATED PLANT
VARIETIES.
(a) In General.--Section 42(a)(1)(B)(i) of the Plant Variety
Protection Act (7 U.S.C. 2402(a)(1)(B)(i)) is amended by inserting after
``filing'' the following: ``, except that in the case of a tuber
propagated plant variety the Secretary may waive the 4-year limitation
for a period ending 1 year after the date of enactment of the Federal
Agriculture Improvement and Reform Act of 1996''.
(b) Term of Protection.--Section 83(b) of the Plant Variety
Protection Act (7 U.S.C. 2483(b)) is amended--
(1) by striking ``(b) The term'' and inserting the
following:
``(b) Term.--
``(1) In general.--Except as provided in paragraph (2), the
term'';
(2) in the second sentence, by striking ``If the
certificate'' and inserting the following:
``(2) Exceptions.--If the certificate''; and
(3) in paragraph (2) (as so designated), by striking
``except that, in the case'' and inserting the following:
``except that--
``(A) in the case of a tuber propagated plant
variety subject to a waiver granted under section
42(a)(1)(B)(i), the term of the plant variety protection
shall expire 20 years after the date of the original
grant of the plant breeder's rights to the variety
outside the United States; and
``(B) in the case''.
SEC. 914. SWINE HEALTH PROTECTION.
(a) Termination of State Primary Enforcement Responsibility.--
Section 10 of the Swine Health Protection Act (7 U.S.C. 3809) is
amended--
(1) by redesignating subsection (c) as subsection (d); and
(2) by inserting after subsection (b) the following:
``(c) Request of State Official.--
``(1) In general.--On request of the Governor or other
appropriate official of a State, the Secretary may terminate,
effective as soon as the Secretary determines is practicable,
the primary enforcement responsibility of a State under
subsection (a). In terminating the primary enforcement
responsibility under this subsection, the Secretary shall work
with the appropriate State official to determine the level of
support to be provided to the Secretary by the State under this
Act.
``(2) Reassumption.--Nothing in this subsection shall
prevent a State from reassuming primary enforcement
responsibility if the Secretary determines that the State meets
the requirements of subsection (a).''.
(b) Advisory Committee.--The Swine Health Protection Act is
amended--
(1) by striking section 11 (7 U.S.C. 3810); and
(2) by redesignating sections 12, 13, and 14 (7 U.S.C. 3811,
3812, and 3813) as sections 11, 12, and 13, respectively.
[[Page 110 STAT. 1187]]
SEC. 915. DESIGNATION OF MOUNT PLEASANT NATIONAL SCENIC AREA.
Sections 1, 2, and 3(a)(1) of the George Washington National Forest
Mount Pleasant Scenic Area Act (Public Law 103-314; 16 U.S.C. 545 note)
are each amended by striking ``George Washington National Forest Mount
Pleasant Scenic Area'' and inserting ``Mount Pleasant National Scenic
Area''.
SEC. 916. PSEUDORABIES ERADICATION PROGRAM.
Section 2506(d) of the Food, Agriculture, Conservation, and Trade
Act of 1990 (21 U.S.C. 114i(d)) is amended by striking ``1995'' and
inserting ``2002''.
SEC. 917. COLLECTION AND USE OF AGRICULTURAL QUARANTINE AND INSPECTION
FEES.
Section 2509 of the Food, Agriculture, Conservation, and Trade Act
of 1990 (21 U.S.C. 136a) is amended by striking subsection (a) and
inserting the following:
``(a) Quarantine and Inspection Fees.--
``(1) Fees authorized.--The Secretary of Agriculture may
prescribe and collect fees sufficient--
``(A) to cover the cost of providing agricultural
quarantine and inspection services in connection with
the arrival at a port in the customs territory of the
United States, or the preclearance or preinspection at a
site outside the customs territory of the United States,
of an international passenger, commercial vessel,
commercial aircraft, commercial truck, or railroad car;
``(B) to cover the cost of administering this
subsection; and
``(C) through fiscal year 2002, to maintain a
reasonable balance in the Agricultural Quarantine
Inspection User Fee Account established under paragraph
(5).
``(2) Limitation.--In setting the fees under paragraph (1),
the Secretary shall ensure that the amount of the fees is
commensurate with the costs of agricultural quarantine and
inspection services with respect to the class of persons or
entities paying the fees. The costs of the services with respect
to passengers as a class includes the costs of related
inspections of the aircraft or other vehicle.
``(3) Status of fees.--Fees collected under this subsection
by any person on behalf of the Secretary are held in trust for
the United States and shall be remitted to the Secretary in such
manner and at such times as the Secretary may prescribe.
``(4) Late payment penalties.--If a person subject to a fee
under this subsection fails to pay the fee when due, the
Secretary shall assess a late payment penalty, and the overdue
fees shall accrue interest, as required by section 3717 of title
31, United States Code.
``(5) Agricultural quarantine inspection user fee account.--
``(A) Establishment.--There is established in the
Treasury of the United States a fund, to be known as the
`Agricultural Quarantine Inspection User Fee Account',
which shall contain all of the fees collected under this
[[Page 110 STAT. 1188]]
subsection and late payment penalties and interest
charges collected under paragraph (4) through fiscal
year 2002.
``(B) Use of account.--For each of fiscal years 1996
through 2002, funds in the Agricultural Quarantine
Inspection User Fee Account shall be available, in such
amounts as are provided in advance in appropriations
Acts, to cover the costs associated with the provision
of agricultural quarantine and inspection services and
the administration of this subsection. Amounts made
available under this subparagraph shall be available
until expended.
``(C) Excess fees.--Fees and other amounts collected
under this subsection in any of fiscal years 1996
through 2002 in excess of $100,000,000 shall be
available for the purposes specified in subparagraph (B)
until expended, without further appropriation.
``(6) Use of amounts collected after fiscal year 2002.--
After September 30, 2002, the unobligated balance in the
Agricultural Quarantine Inspection User Fee Account and fees and
other amounts collected under this subsection shall be credited
to the Department of Agriculture accounts that incur the costs
associated with the provision of agricultural quarantine and
inspection services and the administration of this subsection.
The fees and other amounts shall remain available to the
Secretary until expended without fiscal year limitation.
``(7) Staff years.--The number of full-time equivalent
positions in the Department of Agriculture attributable to the
provision of agricultural quarantine and inspection services and
the administration of this subsection shall not be counted
toward the limitation on the total number of full-time
equivalent positions in all agencies specified in section 5(b)
of the Federal Workforce Restructuring Act of 1994 (Public Law
103-226; 5 U.S.C. 3101 note) or other limitation on the total
number of full-time equivalent positions.''.
SEC. 918. MEAT AND POULTRY INSPECTION.
(a) Establishment of Safe Meat and Poultry Inspection Panel.--
(1) In general.--The Federal Meat Inspection Act is
amended--
(A) by redesignating section 410 (21 U.S.C. 680) as
section 411; and
(B) by inserting after section 409 (21 U.S.C. 679)
the following:
``SEC. 410. <<NOTE: 21 USC 679a.>> SAFE MEAT AND POULTRY INSPECTION
PANEL.
``(a) Establishment.--There is established in the Department of
Agriculture a permanent advisory panel to be known as the `Safe Meat and
Poultry Inspection Panel' (referred to in this section as the `panel').
``(b) Duties.--
``(1) Review and evaluation.--The panel shall review and
evaluate, as the panel considers necessary, the adequacy,
necessity, safety, cost-effectiveness, and scientific merit of--
``(A) inspection procedures of, and work rules and
worker relations involving Federal employees employed
in, plants inspected under this Act;
[[Page 110 STAT. 1189]]
``(B) informal petitions or proposals for changes in
inspection procedures, processes, and techniques of
plants inspected under this Act;
``(C) formal changes in meat inspection regulations
promulgated under this Act, whether in notice, proposed,
or final form; and
``(D) such other matters as may be referred to the
panel by the Secretary regarding the quality or
effectiveness of a safe and cost-effective meat
inspection system under this Act.
``(2) Reports.--
``(A) In general.--The panel shall submit to the
Secretary a report on the results of each review and
evaluation carried out under paragraph (1), including
such recommendations as the panel considers appropriate.
``(B) Reports on formal changes.--In the case of a
report concerning a formal change in meat inspection
regulations, the report shall be made within the time
limits prescribed for formal comments on such changes.
``(C) Publication in federal register.--Each report
of the panel to the Secretary shall be published in the
Federal Register.
``(c) <<NOTE: Federal Register, publication.>> Secretarial
Response.--Not later than 90 days after the publication of a panel
report under subsection (b)(2)(C), the Secretary shall publish in the
Federal Register any response required of the Secretary to the report.
``(d) Composition of Panel.--The panel shall be composed of 7
members, not fewer than 5 of whom shall be from the food science, meat
science, or poultry science profession, appointed to staggered terms not
to exceed 3 years by the Secretary from nominations received from the
National Institutes of Health and the Federation of American Societies
of Food Animal Science and based on the professional qualifications of
the nominees.
``(e) Nominations.--
``(1) Initial panel.--In constituting the initial panel, the
Secretary shall solicit 6 nominees from the National Institutes
of Health and 6 nominees from the Federation of American
Societies of Food Animal Science for membership on the panel.
``(2) Vacancies.--Any subsequent vacancy on the panel shall
be filled by the Secretary after soliciting 2 nominees from the
National Institutes of Health and 2 nominees from the Federation
of American Societies of Food Animal Science.
``(3) Requirements for nominees.--
``(A) In general.--Each nominee provided under
paragraph (1) or (2) shall have a background in public
health issues and a scientific expertise in food, meat,
or poultry science or in veterinary science.
``(B) Submission of information.--The Secretary may
require nominees to submit such information as the
Secretary considers necessary prior to completing the
selection process.
``(4) Additional nominees.--If any list of nominees provided
under paragraph (1) or (2) is unsatisfactory to the Secretary,
the Secretary may request the nominating entities to submit an
additional list of nominees.
``(f) Travel Expenses.--While away from the home or regular place of
business of a member of the panel in the performance
[[Page 110 STAT. 1190]]
of services for the panel, the member shall be allowed travel expenses,
including per diem in lieu of subsistence, at the same rate as a person
employed intermittently in the Government service would be allowed under
section 5703 of title 5, United States Code.
``(g) <<NOTE: Regulations.>> Conflicts of Interest.--The Secretary
shall promulgate regulations regarding conflicts of interest with
respect to the members of the panel.
``(h) Exemption.--The Federal Advisory Committee Act (5 U.S.C. App.)
and title XVIII of the Food and Agriculture Act of 1977 (7 U.S.C. 2281
et seq.) shall not apply to the panel.
``(i) Funding.--From funds available to the Secretary to carry out
this Act and the Poultry Products Inspection Act (21 U.S.C. 451 et
seq.), the Secretary shall allocate such sums as may be necessary to
carry out this section.''.
(2) Cross reference in poultry products inspection act.--The
Poultry Products Inspection Act (21 U.S.C. 451 et seq.) is
amended by adding at the end the following:
``SEC. 30. <<NOTE: 21 USC 471.>> SAFE MEAT AND POULTRY INSPECTION
PANEL.
``(a) Review and Evaluation.--The advisory panel known as the `Safe
Meat and Poultry Inspection Panel' established by section 410 of the
Federal Meat Inspection Act shall review and evaluate, as the panel
considers necessary, the adequacy, necessity, safety, cost-
effectiveness, and scientific merit of--
``(1) inspection procedures of, and work rules and worker
relations involving Federal employees employed in, plants
inspected under this Act;
``(2) informal petitions or proposals for changes in
inspection procedures, processes, and techniques of plants
inspected under this Act;
``(3) formal changes in poultry inspection regulations
promulgated under this Act, whether in notice, proposed, or
final form; and
``(4) such other matters as may be referred to the panel by
the Secretary regarding the quality or effectiveness of a safe
and cost-effective poultry inspection system under this Act.
``(b) Reports.--
``(1) In general.--The Safe Meat and Poultry Inspection
Panel shall submit to the Secretary a report on the results of
each review and evaluation carried out under paragraph (1),
including such recommendations as the panel considers
appropriate.
``(2) Reports on formal changes.--In the case of a report
concerning a formal change in poultry inspection regulations,
the report shall be made within the time limits prescribed for
formal comments on such changes.''.
(b) Interstate Shipment of State-Inspected Meat and Poultry.--Not
later than 90 days after the date of enactment of this Act, the
Secretary of Agriculture shall submit to Congress recommendations
concerning the steps necessary to achieve interstate shipment of--
(1) meat inspected under a State meat inspection program
developed and administered under section 301 of the Federal Meat
Inspection Act (21 U.S.C. 661); and
[[Page 110 STAT. 1191]]
(2) poultry inspected under a State poultry product
inspection program developed and administered under section 5 of
the Poultry Products Inspection Act (21 U.S.C. 454).
SEC. 919. <<NOTE: 7 USC 2260a.>> REIMBURSABLE AGREEMENTS.
(a) In General.--The Secretary of Agriculture (referred to in this
section as the ``Secretary'') may enter into reimbursable fee agreements
with persons for preclearance at locations outside the United States of
plants, plant products, animals, and articles for movement into the
United States.
(b) Overtime, Night, and Holiday Work.--Notwithstanding any other
provision of law, the Secretary may pay an employee of the Department of
Agriculture performing services relating to imports into and exports
from the United States for overtime, night, and holiday work performed
by the employee at a rate of pay established by the Secretary.
(c) Reimbursement.--
(1) In general.--The Secretary may require persons for whom
preclearance services are performed to reimburse the Secretary
for any amounts paid by the Secretary for performance of the
services.
(2) Crediting of funds.--All funds collected under paragraph
(1) shall be credited to the account that incurs the costs and
shall remain available until expended without fiscal year
limitation.
(3) Late payment penalty.--
(A) In general.--On failure of a person to reimburse
the Secretary for the costs of performance of
preclearance services--
(i) the Secretary may assess a late payment
penalty; and
(ii) the overdue funds shall accrue interest
in accordance with section 3717 of title 31,
United States Code.
(B) Crediting of funds.--Any late payment penalty
and any accrued interest collected under this paragraph
shall be credited to the account that incurs the costs
and shall remain available until expended without fiscal
year limitation.
SEC. 920. <<NOTE: 7 USC 2262a.>> OVERSEAS TORT CLAIMS.
(a) In General.--The Secretary of Agriculture may pay a tort claim
in the manner authorized by section 2672 of title 28, United States
Code, if the claim arises outside the United States in connection with
activities of individuals who are performing services for the Secretary.
(b) Period for Presentation of Claim.--A claim may not be allowed
under this section unless the claim is presented in writing to the
Secretary of Agriculture within 2 years after the date on which the
claim accrues.
(c) Finality.--Notwithstanding any other provision of law, an award
or denial of a claim by the Secretary of Agriculture under this section
is final.
SEC. 921. <<NOTE: 7 USC 2279b.>> OPERATION OF GRADUATE SCHOOL OF
DEPARTMENT OF AGRICULTURE AS NONAPPROPRIATED FUND
INSTRUMENTALITY.
(a) Definitions.--In this section:
[[Page 110 STAT. 1192]]
(1) Graduate school.--The term ``Graduate School'' means the
Graduate School of the Department of Agriculture.
(2) Board.--The term ``Board'' means the General
Administration Board of the Graduate School.
(3) Director.--The term ``Director'' means the Director of
the Graduate School.
(4) Secretary.--The term ``Secretary'' means the Secretary
of Agriculture.
(b) Operation as Nonappropriated Fund Instrumentality.--On and after
the date of enactment of this Act, the Graduate School of the Department
of Agriculture shall continue to operate as a nonappropriated fund
instrumentality of the United States under the jurisdiction of the
Department of Agriculture.
(c) Activities of Graduate School.--Under the general supervision of
the Secretary, the Graduate School shall develop, administer, and
provide educational, training, and professional development activities,
including educational activities for Federal agencies, Federal
employees, nonprofit organizations, other entities, and members of the
general public.
(d) Fees and Donations.--
(1) Collection of fees.--The Graduate School may charge and
retain fair and reasonable fees for the activities provided by
the Graduate School. The amount of the fees shall be based on
the cost of the activities to the Graduate School.
(2) Acceptance of donations.--
(A) Acceptance and use authorized.--The Graduate
School may accept, use, hold, dispose, and administer
gifts, bequests, and devises of money, securities, and
other real or personal property made for the benefit of,
or in connection with, the Graduate School.
(B) Exception.--The Graduate School shall not accept
a donation from a person that is actively engaged in a
procurement activity with the Graduate School or has an
interest that may be substantially affected by the
performance or nonperformance of an official duty of a
member of the Board or an employee of the Graduate
School.
(3) Not federal funds.--Fees collected under paragraph (1)
and amounts received under paragraph (2) shall not be considered
to be Federal funds and shall not be required to be deposited in
the Treasury of the United States.
(e) General Administration Board and Director.--
(1) Appointment as governing board.--The Secretary shall
appoint a General Administration Board to serve as a governing
board for the Graduate School and to supervise and direct the
activities of the Graduate School. The Board shall be subject to
regulation by the Secretary.
(2) Duties of board.--The Board shall--
(A) formulate broad policies in accordance with
which the Graduate School shall be administered;
(B) take all steps necessary to ensure that the
highest possible educational standards are maintained by
the Graduate School;
(C) exercise general supervision over the
administration of the Graduate School; and
(D) establish such bylaws, rules, and procedures as
may be necessary for the fulfillment of the duties
described in subparagraphs (A), (B), and (C).
[[Page 110 STAT. 1193]]
(3) Appointment of director and other officers.--The Board
shall select a Director and such other officers as the Board
considers necessary to administer the Graduate School. The
Director and other officers shall serve on such terms and
perform such duties as the Board may prescribe.
(4) Duties of director.--The Director shall be responsible,
subject to the supervision and direction of the Board, for
carrying out the functions of the Graduate School.
(5) Borrowing and investment authority.--The Board may
authorize the Director--
(A) to borrow money on the credit of the Graduate
School; and
(B) to invest funds held in excess of the current
operating requirements of the Graduate School for
purposes of maintaining a reasonable reserve.
(6) Liability.--The Director and the members of the Board
shall not be held personally liable for any loss or damage that
may accrue to the funds of the Graduate School as the result of
any act or exercise of discretion performed in carrying out
their duties under this section.
(f) Employees.--Employees of the Graduate School are employees of a
nonappropriated fund instrumentality and shall not be considered to be
Federal employees.
(g) Not a Federal Agency.--The Graduate School shall not be
considered to be a Federal agency for purposes of--
(1) the Federal Advisory Committee Act (5 U.S.C. App.);
(2) section 552 or 552a of title 5, United States Code; or
(3) chapter 171 of title 28, United States Code.
(h) Acquisition and Disposal of Property.--In order to carry out the
activities of the Graduate School, the Graduate School may--
(1) acquire real property in the District of Columbia and in
other places by lease, purchase, or otherwise;
(2) maintain, enlarge, or remodel any such property;
(3) have sole control of any such property; and
(4) dispose of real and personal property without regard to
the Federal Property and Administrative Services Act of 1949 (40
U.S.C. 471 et seq.).
(i) Contract Authority.--The Graduate School may enter into
contracts without regard to the Federal Property and Administrative
Services Act of 1949 (40 U.S.C. 471 et seq.) or any other law that
prescribes procedures for the procurement of property or services by an
executive agency.
(j) Use of Department Facilities and Resources.--The Graduate School
may use the facilities and resources of the Department of Agriculture,
on the condition that any costs incurred by the Department that are
attributable solely to Graduate School operations and all costs incurred
by the Graduate School arising out of such operations shall be paid
using funds of the Graduate School. Federal funds may not be used to pay
the costs.
SEC. 922. <<NOTE: 7 USC 2279c.>> STUDENT INTERNSHIP PROGRAMS.
(a) Student Intern Subsistence Program.--
(1) Definition of student intern.--In this subsection, the
term ``student intern'' means a person who--
[[Page 110 STAT. 1194]]
(A) is employed by the Department of Agriculture
(referred to in this section as the ``Department'') to
assist scientific, professional, administrative, or
technical employees of the Department; and
(B) is a student in good standing at an institution
of higher education (as defined in section 1201 of the
Higher Education Act of 1965 (20 U.S.C. 1141)) pursuing
a course of study related to the field in which the
person is employed by the Department.
(2) Payment of certain expenses by the secretary.--The
Secretary of Agriculture (referred to in this section as the
``Secretary'') may, out of user fee funds or funds appropriated
to any agency of the Department, pay for lodging expenses,
subsistence expenses, and transportation expenses of a student
intern at the agency (including expenses of transportation to
and from the student intern's residence at or near the
institution of higher education attended by the student intern
and the official duty station at which the student intern is
employed).
(b) Cooperation With Associations of Colleges and Universities.--
(1) Authority to cooperate.--Notwithstanding chapter 63 of
title 31, United States Code, the Secretary may enter into
cooperative agreements on an annual basis with 1 or more
associations of institutions of higher education (as defined in
section 1201 of the Higher Education Act of 1965 (20 U.S.C.
1141)) for the purpose of providing for Department participation
in internship programs for graduate and undergraduate students
who are selected by the associations from students attending
member institutions of the associations and other institutions
of higher education.
(2) Internship program.--An internship program supported
under this subsection (referred to in this subsection as an
``internship program'') shall provide work assignments for
students within the Department and such other activities as the
association that enters into the cooperative agreement under
paragraph (1) with respect to the internship program (referred
to in this subsection as the ``cooperating association'') and
the Secretary shall determine. The nature of Department
participation in an internship program shall be developed
jointly by the Secretary and the cooperating association.
(3) Program coordination.--The cooperating association shall
coordinate an internship program, including--
(A) the recruitment of students;
(B) arrangements for travel of the students to
Washington, District of Columbia, and to agency field
locations;
(C) the provision of housing for students, if
required; and
(D) all activities for the students that take place
outside the Department work assignments of the students.
(4) Number and selection of students.--
(A) Number.--A cooperative agreement entered into
under paragraph (1) shall specify the number of students
that the Department will host each year and a list of
work assignments to be provided for the students.
(B) Selection.--The cooperating association shall
provide the Department with a pool of student candidates
[[Page 110 STAT. 1195]]
meeting the requirements for each work assignment
identified by the Secretary. Final selection of the
students for Department internship positions shall be
made by the Secretary.
(5) Cost reimbursement.--From such amounts as the Secretary
determines are available each fiscal year for internship
programs, and subject to such regulations as the Secretary may
issue, the Secretary may reimburse a cooperating association for
the Department share of all direct and indirect costs of an
internship program, including student stipends, transportation
costs to the internship site, and other costs of an internship
program.
(6) Lead agency.--The Secretary may designate a lead agency
within the Department to carry out this subsection.
(7) Interagency agreements.--Agencies and offices within the
Department other than the lead agency--
(A) may enter into interagency agreements with the
lead agency to provide work assignments for students
participating in an internship program; and
(B) shall reimburse the lead agency for the direct
and indirect costs of each student assigned to the
agency under an internship program.
(8) Federal employee status.--A student who participates in
an internship program shall not be considered a Federal
employee, except for purposes of chapter 81 of title 5, and
chapter 171 of title 28, United States Code.
SEC. 923. <<NOTE: 7 USC 2206a.>> CONVEYANCE OF EXCESS FEDERAL PERSONAL
PROPERTY.
Notwithstanding any other provision of law, the Secretary of
Agriculture may--
(1) convey title to excess Federal personal property owned
by the Department of Agriculture, with or without monetary
compensation and for such purposes as are determined by the
Secretary, to--
(A) any of the 1994 Institutions (as defined in
section 532 of the Equity in Educational Land-Grant
Status Act of 1994 (Public Law 103-382; 7 U.S.C. 301
note));
(B) any Hispanic-serving institution (as defined in
section 316(b) of the Higher Education Act of 1965 (20
U.S.C. 1059c(b))); and
(C) any college or university eligible to receive
funds under the Act of August 30, 1890 (7 U.S.C. 321 et
seq.), including Tuskegee University; and
(2) acquire from, exchange with, or dispose of personal
property to other Federal departments and agencies without
monetary compensation in furtherance of the purposes of this
section.
SEC. 924. <<NOTE: Arkansas.>> CONVEYANCE OF LAND TO WHITE OAK CEMETERY.
(a) In General.--
(1) Release of interest.--After execution of the agreement
described in subsection (b), the Secretary of Agriculture shall
release the condition stated in the deed on the land described
in subsection (c) that the land be used for public purposes, and
that if the land is not so used, that the land revert to the
United States. The release shall be on the condition that the
land be used exclusively for cemetery purposes,
[[Page 110 STAT. 1196]]
and that if the land is not so used, that the land revert to the
United States.
(2) Bankhead-jones farm tenant act.--Section 32(c) of the
Bankhead-Jones Farm Tenant Act (7 U.S.C. 1011(c)) shall not
apply to the release under paragraph (1).
(b) Agreement.--The Secretary of Agriculture shall make the release
under subsection (a) on execution by the Board of Trustees of the
University of Arkansas, in consideration of the release, of an
agreement, satisfactory to the Secretary of Agriculture, that--
(1) the Board of Trustees will not sell, lease, exchange, or
otherwise dispose of the land described in subsection (c) except
to the White Oak Cemetery Association of Washington County,
Arkansas, or a successor organization, for exclusive use for an
expansion of the cemetery maintained by the Association or
successor organization; and
(2) the proceeds of such a disposition of the land will be
deposited and held in an account open to inspection by the
Secretary of Agriculture, and used, if withdrawn from the
account, for public purposes.
(c) Land Description.--The land described in this subsection is the
land conveyed to the Board of Trustees of the University of Arkansas,
with certain other land, by deed dated November 18, 1953, comprising
approximately 2.2 acres located within property of the University of
Arkansas in Washington County, Arkansas, commonly known as the ``Savor
property'' and described as follows:
The part of Section 20, Township 17 north, range 31 west,
beginning at the north corner of the White Oak Cemetery and the
University of Arkansas Agricultural Experiment Station farm at
Washington County road #874, running west approximately 330
feet, thence south approximately 135 feet, thence southeast
approximately 384 feet, thence north approximately 330 feet to
the point of beginning.
SEC. 925. SALE OF LAND BY THE UNIVERSITY OF ARKANSAS.
The Act of March 2, 1887 (commonly known as the ``Hatch Act of
1887'') (7 U.S.C. 361a et seq.) shall not apply to the sale by the
University of Arkansas of the approximately 103.52 acres of land in
Washington County, Arkansas, owned by the University and commonly known
as the ``Walker Tract'', if the sale is made on the condition that all
of the proceeds of the sale are used for agricultural research
facilities and programs of the University of Arkansas.
SEC. 926. <<NOTE: Arkansas.>> DESIGNATION OF DALE BUMPERS SMALL FARMS
RESEARCH CENTER.
(a) In General.--The small farms research facility of the
Agricultural Research Service located near Booneville, Arkansas, shall
be known and designated as the ``Dale Bumpers Small Farms Research
Center''.
(b) References.--Any reference in a law, map, regulation, document,
paper, or other record of the United States to the research facility
referred to in subsection (a) shall be deemed to be a reference to the
``Dale Bumpers Small Farms Research Center''.
SEC. 927. <<NOTE: Maryland.>> DEPARTMENT OF AGRICULTURE WASHINGTON AREA
STRATEGIC SPACE PLAN.
The Secretary of Agriculture may obligate not more than $5,000,000,
from funds appropriated for agriculture buildings and
[[Page 110 STAT. 1197]]
facilities and rental payments, for the improvement of State and local
roads relating to the construction of an office complex at the
Beltsville Agriculture Research Center, Maryland, as part of the
implementation of the Department of Agriculture Washington Area
Strategic Space Plan.
SEC. 928. <<NOTE: 7 USC 7201 note.>> SEVERABILITY.
If any provision of this Act or the application thereof to any
person or circumstance is held invalid, the invalidity shall not affect
other provisions or applications of this Act that can be given effect
without regard to the invalid provision or application, and to this end
the provisions of this Act are severable.
Approved April 4, 1996.
LEGISLATIVE HISTORY--H.R. 2854 (S. 1541):
---------------------------------------------------------------------------
HOUSE REPORTS: Nos. 104-462, Pt. 1 (Comm. on Agriculture) and 104-494
(Comm. of Conference).
CONGRESSIONAL RECORD, Vol. 142 (1996):
Jan. 31, Feb. 1, 6, 7, S. 1541 considered and passed Senate.
Feb. 28, 29, H.R. 2854 considered and passed House.
Mar. 12, considered and passed Senate, amended, in lieu of
S. 1541.
Mar. 27, Senate considered conference report.
Mar. 28, Senate and House agreed to conference report.
WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 32 (1996):
Apr. 4, Presidential statement.
<all>