H.R. 4217 (103rd): Federal Crop Insurance Reform and Department of Agriculture Reauthorization Act of 1994

103rd Congress, 1993–1994. Text as of Oct 04, 1994 (Passed Congress/Enrolled Bill).

Status & Summary | PDF | Source: GPO

H.R.4217

One Hundred Third Congress

of the

United States of America

AT THE SECOND SESSION

Begun and held at the City of Washington on Tuesday,

the twenty-fifth day of January, one thousand nine hundred and ninety-four

An Act

To reform the Federal crop insurance program, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) SHORT TITLE- This Act may be cited as the ‘Federal Crop Insurance Reform and Department of Agriculture Reorganization Act of 1994’.

    (b) TABLE OF CONTENTS- The table of contents of this Act is as follows:

      Sec. 1. Short title; table of contents.

TITLE I--FEDERAL CROP INSURANCE REFORM

      Sec. 101. Short title; references.

      Sec. 102. Definitions.

      Sec. 103. Members of Board of Directors of Corporation.

      Sec. 104. General powers.

      Sec. 105. Personnel.

      Sec. 106. Crop insurance.

      Sec. 107. Crop insurance yield coverage.

      Sec. 108. Preemption.

      Sec. 109. Advisory Committee.

      Sec. 110. Funding.

      Sec. 111. Noninsured crop disaster assistance.

      Sec. 112. Payment and income limitations.

      Sec. 113. Producer eligibility.

      Sec. 114. Ineligibility for catastrophic risk and noninsured assistance payments.

      Sec. 115. Elimination of gender references.

      Sec. 116. Prevented planting.

      Sec. 117. Report on improving dissemination of crop insurance information.

      Sec. 118. Crop insurance provider evaluation.

      Sec. 119. Conforming amendments.

      Sec. 120. Effective date.

TITLE II--DEPARTMENT OF AGRICULTURE REORGANIZATION

      Sec. 201. Short title.

      Sec. 202. Purpose.

      Sec. 203. Definitions.

Subtitle A--General Reorganization Authorities

      Sec. 211. Transfer of Department functions to Secretary of Agriculture.

      Sec. 212. Authority of Secretary to delegate transferred functions.

      Sec. 213. Reductions in number of department personnel.

      Sec. 214. Consolidation of headquarters offices.

      Sec. 215. Combination of field offices.

      Sec. 216. Improvement of information sharing.

      Sec. 217. Reports by the Secretary.

      Sec. 218. Assistant Secretaries of Agriculture.

      Sec. 219. Pay increases prohibited.

Subtitle B--Farm and Foreign Agricultural Services

      Sec. 225. Under Secretary of Agriculture for Farm and Foreign Agricultural Services.

      Sec. 226. Consolidated Farm Service Agency.

      Sec. 227. State, county, and area committees.

Subtitle C--Rural Economic and Community Development

      Sec. 231. Under Secretary of Agriculture for Rural Economic and Community Development.

      Sec. 232. Rural Utilities Service.

      Sec. 233. Rural Housing and Community Development Service.

      Sec. 234. Rural Business and Cooperative Development Service.

      Sec. 235. Conforming amendments regarding Rural Electrification Administration.

Subtitle D--Food, Nutrition, and Consumer Services

      Sec. 241. Under Secretary of Agriculture for Food, Nutrition, and Consumer Services.

Subtitle E--Natural Resources and Environment

      Sec. 245. Under Secretary of Agriculture for Natural Resources and Environment.

      Sec. 246. Natural Resources Conservation Service.

      Sec. 247. Reorganization of Forest Service.

Subtitle F--Research, Education, and Economics

      Sec. 251. Under Secretary of Agriculture for Research, Education, and Economics.

      Sec. 252. Program staff.

Subtitle G--Food Safety

      Sec. 261. Under Secretary of Agriculture for Food Safety.

      Sec. 262. Conditions for implementation of alterations in the level of additives allowed in animal diets.

Subtitle H--National Appeals Division

      Sec. 271. Definitions.

      Sec. 272. National Appeals Division and Director.

      Sec. 273. Transfer of functions.

      Sec. 274. Notice and opportunity for hearing.

      Sec. 275. Informal hearings.

      Sec. 276. Right of participants to Division hearing.

      Sec. 277. Division hearings.

      Sec. 278. Director review of determinations of hearing officers.

      Sec. 279. Judicial review.

      Sec. 280. Implementation of final determinations of Division.

      Sec. 281. Conforming amendments relating to National Appeals Division.

      Sec. 282. Expansion of issues covered by State mediation programs.

      Sec. 283. Authorization of appropriations.

Subtitle I--Miscellaneous Reorganization Provisions

      Sec. 291. Successorship provisions relating to bargaining units and exclusive representatives.

      Sec. 292. Purchase of American-made equipment and products.

      Sec. 293. Miscellaneous conforming amendments.

      Sec. 294. Removal of obsolete administrative provisions.

      Sec. 295. Proposed conforming amendments.

      Sec. 296. Termination of authority.

TITLE III--MISCELLANEOUS

      Sec. 301. Poultry labeling.

      Sec. 302. First Amendment rights of employees of the United States Department of Agriculture.

      Sec. 303. Adjusted cost of thrifty food plan.

      Sec. 304. Office of Risk Assessment and Cost-Benefit Analysis.

      Sec. 305. Fair and equitable treatment of socially disadvantaged producers.

      Sec. 306. Aviation inspections.

TITLE I--FEDERAL CROP INSURANCE REFORM

SEC. 101. SHORT TITLE; REFERENCES.

    (a) SHORT TITLE- This title may be cited as the ‘Federal Crop Insurance Reform Act of 1994’.

    (b) REFERENCES TO FEDERAL CROP INSURANCE ACT- Except as otherwise expressly provided, whenever in this title an amendment or repeal is expressed in terms of an amendment to, or repeal of, a section or other provision, the reference shall be considered to be made to a section or other provision of the Federal Crop Insurance Act (7 U.S.C. 1501 et seq.).

SEC. 102. DEFINITIONS.

    (a) IN GENERAL- Section 502 (7 U.S.C. 1502) is amended--

      (1) by striking the section heading and ‘SEC. 502.’ and inserting the following:

‘SEC. 502. PURPOSE AND DEFINITIONS.

    ‘(a) PURPOSE- ’; and

      (2) by adding at the end the following new subsection:

    ‘(b) DEFINITIONS- As used in this title:

      ‘(1) ADDITIONAL COVERAGE- The term ‘additional coverage’ means a plan of crop insurance coverage providing a level of coverage greater than the level available under catastrophic risk protection.

      ‘(2) APPROVED INSURANCE PROVIDER- The term ‘approved insurance provider’ means a private insurance provider that has been approved by the Corporation to provide insurance coverage to producers participating in the Federal crop insurance program established under this title.

      ‘(3) BOARD- The term ‘Board’ means the Board of Directors of the Corporation established under section 505(a).

      ‘(4) CORPORATION- The term ‘Corporation’ means the Federal Crop Insurance Corporation established under section 503.

      ‘(5) DEPARTMENT- The term ‘Department’ means the United States Department of Agriculture.

      ‘(6) LOSS RATIO- The term ‘loss ratio’ means the ratio of all sums paid by the Corporation as indemnities under any eligible crop insurance policy to that portion of the premium designated for anticipated losses and a reasonable reserve, other than that portion of the premium designated for operating and administrative expenses.

      ‘(7) SECRETARY- The term ‘Secretary’ means the Secretary of Agriculture.

      ‘(8) TRANSITIONAL YIELD- The term ‘transitional yield’ means the maximum average production per acre or equivalent measure that is assigned to acreage for a crop year by the Corporation in accordance with the regulations of the Corporation whenever the producer fails--

        ‘(A) to certify that acceptable documentation of production and acreage for the crop year is in the possession of the producer; or

        ‘(B) to present the acceptable documentation on the demand of the Corporation or an insurance company reinsured by the Corporation.’.

    (b) CONFORMING AMENDMENTS-

      (1) The first sentence of section 503 (7 U.S.C. 1503) is amended by striking ‘(herein called the Corporation)’.

      (2) Section 504 (7 U.S.C. 1504) is amended--

        (A) in subsection (a), by striking ‘Board of Directors of the Corporation’ and inserting ‘Board’; and

        (B) in subsection (d), by striking ‘Federal Crop Insurance Corporation’ and inserting ‘Corporation’.

      (3) The first sentence of section 505(a) (7 U.S.C. 1505(a)) is amended by striking ‘(hereinafter called the ‘Board’)’.

      (4) Except in section 502, the Act is amended--

        (A) by striking ‘Board of Directors’ each place it appears and inserting ‘Board’;

        (B) by striking ‘Department of Agriculture’ each place it appears and inserting ‘Department’; and

        (C) by striking ‘Secretary of Agriculture’ each place it appears and inserting ‘Secretary’.

SEC. 103. MEMBERS OF BOARD OF DIRECTORS OF CORPORATION.

    The second sentence of section 505(a) (7 U.S.C. 1505(a)) is amended--

      (1) by striking ‘or Assistant Secretary’ the first place it appears; and

      (2) by striking ‘the Under Secretary or Assistant Secretary of Agriculture responsible for the farm credit programs of the Department of Agriculture’ and inserting ‘one additional Under Secretary of Agriculture (as designated by the Secretary of Agriculture)’.

SEC. 104. GENERAL POWERS.

    Section 506 (7 U.S.C. 1506) is amended--

      (1) by redesignating subsections (j) through (n) as subsections (k) through (o), respectively;

      (2) by inserting after subsection (i) the following new subsection:

    ‘(j) SETTLING CLAIMS- The Corporation shall have the authority to make final and conclusive settlement and adjustment of any claim by or against the Corporation or a fiscal officer of the Corporation.’;

      (3) in subsection (l) (as so redesignated)--

        (A) in the first sentence, by inserting ‘, and issue regulations,’ after ‘agreements’; and

        (B) in the second sentence, by striking ‘contracts or agreements’ each place it appears and inserting ‘contracts, agreements, or regulations’;

      (4) in subsection (n)(1) (as so redesignated), by striking subparagraph (B) and inserting the following new subparagraph:

        ‘(B) disqualify the person from purchasing catastrophic risk protection or receiving noninsured assistance for a period of not to exceed 2 years, or from receiving any other benefit under this title for a period of not to exceed 10 years.’;

      (5) in subsection (o) (as so redesignated)--

        (A) by redesignating paragraphs (1) through (4) as subparagraphs (A) through (D) and aligning the margins of each subparagraph with the margins of subparagraph (A) of subsection (n)(1) (as redesignated by paragraph (1));

        (B) by striking ‘(o) ACTUARIAL SOUNDNESS- The Corporation’ and inserting the following:

    ‘(o) ACTUARIAL SOUNDNESS-

      ‘(1) PROJECTED LOSS RATIO AS OF OCTOBER 1, 1995- The Corporation’;

        (C) in subparagraph (A) (as redesignated by subparagraph (A)), by striking ‘from obtaining adequate Federal crop insurance, as determined by the Corporation’ and inserting ‘(as defined by the Secretary) from obtaining Federal crop insurance’;

        (D) in subparagraph (C) (as so redesignated)--

          (i) by inserting ‘, agents, and loss adjusters’ after ‘participating producers’; and

          (ii) by inserting ‘, agents, and loss adjusters’ after ‘identify insured producers’; and

        (E) by adding at the end the following new paragraphs:

      ‘(2) PROJECTED LOSS RATIO AS OF OCTOBER 1, 1998- The Corporation shall take such actions, including the establishment of adequate premiums, as are necessary to improve the actuarial soundness of Federal multiperil crop insurance made available under this title to achieve, on and after October 1, 1998, an overall projected loss ratio of not greater than 1.075.

      ‘(3) NONSTANDARD CLASSIFICATION SYSTEM- To the extent that the Corporation uses the nonstandard classification system, the Corporation shall apply the system to all insured producers in a fair and consistent manner.’; and

      (6) by adding at the end the following new subsections:

    ‘(p) REGULATIONS- The Secretary and the Corporation are each authorized to issue such regulations as are necessary to carry out this title.

    ‘(q) PROGRAM COMPLIANCE-

      ‘(1) TIMELINESS- The Corporation shall work actively with approved insurance providers to address program compliance and integrity issues as the issues develop.

      ‘(2) NOTIFICATION OF COMPLIANCE PROBLEMS- The Corporation shall notify in writing any approved insurance provider with whom the Corporation has an agreement under this title of any error, omission, or failure to follow Corporation regulations or procedures for which the approved insurance provider may be responsible and which may result in a debt owed the Corporation. The notice shall be given within 3 years of the end of the insurance period during which the error, omission, or failure is alleged to have occurred, except that this time limit shall not apply with respect to errors, omissions, or procedural violations that are willful or intentional. The failure to timely provide the notice required under this subsection shall relieve the approved insurance provider from the debt owed the Corporation.

    ‘(r) PURCHASE OF AMERICAN-MADE EQUIPMENT AND PRODUCTS-

      ‘(1) SENSE OF CONGRESS- It is the sense of Congress that, to the greatest extent practicable, all equipment and products purchased by the Corporation using funds made available to the Corporation should be American-made.

      ‘(2) NOTICE REQUIREMENT- In providing financial assistance to, or entering into any contract with, any entity for the purchase of equipment and products to carry out this title, the Corporation, to the greatest extent practicable, shall provide to the entity a notice describing the statement made in paragraph (1).’.

SEC. 105. PERSONNEL.

    Section 507 (7 U.S.C. 1507) is amended--

      (1) in subsection (a), by striking ‘, and county crop insurance committeemen’;

      (2) in subsection (d), by striking ‘of this Act,’ and all that follows through ‘agency’; and

      (3) by adding at the end the following new subsection:

    ‘(g)(1) The Corporation shall establish a management-level position to be known as the Specialty Crops Coordinator.

    ‘(2) The Specialty Crops Coordinator shall have primary responsibility for addressing the needs of specialty crop producers, and for providing information and advice, in connection with the activities of the Corporation to improve and expand the insurance program for specialty crops. In carrying out this paragraph, the Specialty Crops Coordinator shall act as the liaison of the Corporation with representatives of specialty crop producers and assist the Corporation with the knowledge, expertise, and familiarity of the producers with risk management and production issues pertaining to specialty crops.

    ‘(3) The Specialty Crops Coordinator shall use information collected from Corporation field office directors in States in which specialty crops have a significant economic effect and from other sources, including the extension service and colleges and universities.’.

SEC. 106. CROP INSURANCE.

    Section 508 (7 U.S.C. 1508) is amended to read as follows:

‘SEC. 508. CROP INSURANCE.

    ‘(a) AUTHORITY TO OFFER INSURANCE-

      ‘(1) IN GENERAL- If sufficient actuarial data are available (as determined by the Corporation), the Corporation may insure, or provide reinsurance for insurers of, producers of agricultural commodities grown in the United States under 1 or more plans of insurance determined by the Corporation to be adapted to the agricultural commodity concerned. To qualify for coverage under a plan of insurance, the losses of the insured commodity must be due to drought, flood, or other natural disaster (as determined by the Secretary).

      ‘(2) PERIOD- Except in the cases of tobacco and potatoes, insurance shall not extend beyond the period during which the insured commodity is in the field. As used in the preceding sentence, in the case of an aquacultural species, the term ‘field’ means the environment in which the commodity is produced.

      ‘(3) EXCLUSIONS- Insurance provided under this subsection shall not cover losses due to--

        ‘(A) the neglect or malfeasance of the producer;

        ‘(B) the failure of the producer to reseed to the same crop in such areas and under such circumstances as it is customary to reseed; or

        ‘(C) the failure of the producer to follow good farming practices (as determined by the Secretary).

      ‘(4) EXPANSION TO OTHER AREAS OR SINGLE PRODUCERS-

        ‘(A) AREA EXPANSION- The Corporation may offer plans of insurance or reinsurance for production of agricultural commodities in the Commonwealth of Puerto Rico, the Virgin Islands, Guam, American Samoa, the Commonwealth of the Northern Mariana Islands, the Republic of the Marshall Islands, the Federated States of Micronesia, and the Republic of Palau in the same manner as provided in this section for production of agricultural commodities in the United States.

        ‘(B) PRODUCER EXPANSION- In an area in the United States or specified in subparagraph (A) where crop insurance is not available for a particular agricultural commodity, the Corporation may offer to enter into a written agreement with an individual producer operating in the area for insurance coverage under this title if the producer has actuarially sound data relating to the production by the producer of the commodity and the data is acceptable to the Corporation.

      ‘(5) DISSEMINATION OF CROP INSURANCE INFORMATION- The Corporation shall make available to producers through local offices of the Department--

        ‘(A) current and complete information on all aspects of Federal crop insurance; and

        ‘(B) a listing of insurance agents and companies offering to sell crop insurance in the area of the producers.

      ‘(6) ADDITION OF NEW AND SPECIALTY CROPS-

        ‘(A) DATA COLLECTION- Not later than 180 days after the date of enactment of this paragraph, the Secretary shall issue guidelines for publication in the Federal Register for data collection to assist the Corporation in formulating crop insurance policies for new and specialty crops.

        ‘(B) ADDITION OF NEW CROPS- Not later than 1 year after the date of enactment of this paragraph, and annually thereafter, the Corporation shall report to Congress on the progress and expected timetable for expanding crop insurance coverage under this title to new and specialty crops.

        ‘(C) ADDITION OF DIRECT SALE PERISHABLE CROPS- Not later than 1 year after the date of enactment of this paragraph, the Corporation shall report to Congress on the feasibility of offering a crop insurance program designed to meet the needs of specialized producers of vegetables and other perishable crops who market through direct marketing channels.

    ‘(b) CATASTROPHIC RISK PROTECTION-

      ‘(1) IN GENERAL- The Corporation shall offer a catastrophic risk protection plan to indemnify producers for crop loss due to loss of yield or prevented planting, if provided by the Corporation, when the producer is unable, because of drought, flood, or other natural disaster (as determined by the Secretary), to plant other crops for harvest on the acreage for the crop year.

      ‘(2) AMOUNT OF COVERAGE-

        ‘(A) IN GENERAL- Subject to subparagraph (B)--

          ‘(i) in the case of each of the 1995 through 1998 crop years, catastrophic risk protection shall offer a producer coverage for a 50 percent loss in yield, on an individual yield or area yield basis, indemnified at 60 percent of the expected market price, or a comparable coverage (as determined by the Corporation); and

          ‘(ii) in the case of each of the 1999 and subsequent crop years, catastrophic risk protection shall offer a producer coverage for a 50 percent loss in yield, on an individual yield or area yield basis, indemnified at 55 percent of the expected market price, or a comparable coverage (as determined by the Corporation).

        ‘(B) REDUCTION IN ACTUAL PAYMENT- The amount paid to a producer on a claim under catastrophic risk protection may reflect a reduction that is proportional to the out-of-pocket expenses that are not incurred by the producer as a result of not planting, growing, or harvesting the crop for which the claim is made, as determined by the Corporation.

      ‘(3) YIELD AND LOSS BASIS- A producer shall have the option of basing the catastrophic coverage of the producer on an individual yield and loss basis or on an area yield and loss basis, if both options are offered by the Corporation.

      ‘(4) SALE OF CATASTROPHIC RISK COVERAGE-

        ‘(A) IN GENERAL- Catastrophic risk coverage may be offered by--

          ‘(i) approved insurance providers, if available in an area; and

          ‘(ii) at the option of the Secretary that is based on considerations of need, local offices of the Department.

        ‘(B) NEED- For purposes of considering need under subparagraph (A)(ii), the Secretary may take into account the most efficient and cost-effective use of resources, the availability of personnel, fairness to local producers, the needs and convenience of local producers, and the availability of private insurance carriers.

      ‘(5) ADMINISTRATIVE FEE-

        ‘(A) FEE REQUIRED- Producers shall pay an administrative fee for catastrophic risk protection. The administrative fee for each producer shall be $50 per crop per county, but not to exceed $200 per producer per county up to a maximum of $600 per producer for all counties in which a producer has insured crops. The administrative fee shall be paid by the producer at the time the producer applies for catastrophic risk protection.

        ‘(B) USE OF FEES-

          ‘(i) FEES UP TO $100-

            ‘(I) FEES COLLECTED BY USDA OFFICES- Not more than $100 of the administrative fees paid by a producer for catastrophic risk coverage that are collected by an office of the Department shall be credited to the appropriations account providing funds for the payment of operating and administrative expenses incurred for the delivery of catastrophic risk protection under this section. The fees shall be collected in accordance with appropriation Acts and shall be available until expended without fiscal year limitation for the payment of the expenses.

            ‘(II) FEES COLLECTED BY APPROVED INSURANCE PROVIDERS- Not more than $100 of the administrative fees paid by a producer for catastrophic risk coverage that are collected by an approved insurance provider shall be retained by the provider as payment for operating and administrative expenses incurred for the delivery of catastrophic risk protection.

          ‘(ii) FEES IN EXCESS OF $100- Notwithstanding the authority granted to the Secretary under the Federal Crop Insurance Corporation account provisions of the Agricultural, Rural Development, Food and Drug Administration, and Related Agencies Appropriations Act, 1995, all fees collected under this subsection in excess of $100 per producer per county shall be deposited in the crop insurance fund established under section 516(c), to be available for the programs and activities of the Corporation.

        ‘(C) WAIVER OF FEE- The Corporation shall waive the administrative fee for limited resource farmers, as defined by the Corporation.

      ‘(6) PARTICIPATION REQUIREMENT- A producer may obtain catastrophic risk coverage for a crop of the producer on land in the county only if the producer obtains the coverage for the crop on all insurable land of the producer in the county.

      ‘(7) ELIGIBILITY FOR DEPARTMENT PROGRAMS-

        ‘(A) IN GENERAL- To be eligible for any price support or production adjustment program, the conservation reserve program, or any benefit described in section 371 of the Consolidated Farm and Rural Development Act, the producer must obtain at least the catastrophic level of insurance for each crop of economic significance grown on each farm in the county in which the producer has an interest, if insurance is available in the county for the crop.

        ‘(B) DEFINITION OF CROP OF ECONOMIC SIGNIFICANCE- As used in this paragraph, the term ‘crop of economic significance’ means a crop that has contributed, or is expected to contribute, 10 percent or more of the total expected value of all crops grown by the producer.

      ‘(8) LIMITATION DUE TO RISK- The Corporation may limit catastrophic risk coverage in any county or area, or on any farm, on the basis of the insurance risk concerned.

      ‘(9) TRANSITIONAL COVERAGE FOR 1995 CROPS- Effective only for a 1995 crop planted or for which insurance attached prior to January 1, 1995, the Corporation shall allow producers of the crops until not later than the end of the 180-day period beginning on the date of enactment of the Federal Crop Insurance Reform Act of 1994 to obtain catastrophic risk protection for the crop. On enactment of such Act, a producer who made timely purchases of a crop insurance policy before the date of enactment of such Act, under the provisions of this title then in effect, shall be eligible for the same benefits to which a producer would be entitled under comparable additional coverage under subsection (c).

      ‘(10) SIMPLIFICATION-

        ‘(A) CATASTROPHIC RISK PROTECTION PLANS- In developing and carrying out the policies and procedures for a catastrophic risk protection plan under this title, the Corporation shall, to the maximum extent practicable, minimize the paperwork required and the complexity and costs of procedures governing applications for, processing, and servicing of the plan for all parties involved.

        ‘(B) OTHER PLANS- To the extent that the policies and procedures developed under subparagraph (A) may be applied to other plans of insurance offered under this title without jeopardizing the actuarial soundness or integrity of the crop insurance program, the Corporation shall apply the policies and procedures to the other plans of insurance within a reasonable period of time (as determined by the Corporation) after the effective date of this paragraph.

    ‘(c) GENERAL COVERAGE LEVELS-

      ‘(1) ADDITIONAL COVERAGE GENERALLY-

        ‘(A) IN GENERAL- The Corporation shall offer to producers of agricultural commodities grown in the United States plans of crop insurance that provide additional coverage.

        ‘(B) PURCHASE- To be eligible for additional coverage, a producer must apply to an approved insurance provider for purchase of additional coverage if the coverage is available from an approved insurance provider. If additional coverage is unavailable privately, the Corporation may offer additional coverage plans of insurance directly to producers.

      ‘(2) TRANSFER OF RELEVANT INFORMATION- If a producer has already applied for catastrophic risk protection at the local office of the Department and elects to purchase additional coverage, the relevant information for the crop of the producer shall be transferred to the approved insurance provider servicing the additional coverage crop policy.

      ‘(3) YIELD AND LOSS BASIS- A producer shall have the option of purchasing additional coverage based on an individual yield and loss basis or on an area yield and loss basis, if both options are offered by the Corporation.

      ‘(4) LEVEL OF COVERAGE- The level of coverage shall be dollar denominated and may be purchased at any level not to exceed 85 percent of the individual yield or 95 percent of the area yield (as determined by the Corporation). Not later than the beginning of the 1996 crop year, the Corporation shall provide producers with information on catastrophic risk and additional coverage in terms of dollar coverage (within the allowable limits of coverage provided in this paragraph).

      ‘(5) PRICE LEVEL- The Corporation shall establish a price level for each commodity on which insurance is offered that--

        ‘(A) shall not be less than the projected market price for the commodity (as determined by the Corporation); or

        ‘(B) at the discretion of the Corporation, may be based on the actual market price at the time of harvest (as determined by the Corporation).

      ‘(6) PRICE ELECTIONS-

        ‘(A) IN GENERAL- Subject to subparagraph (B), insurance coverage shall be made available to a producer on the basis of any price election that equals or is less than the price election established by the Corporation. The coverage shall be quoted in terms of dollars per acre.

        ‘(B) MINIMUM PRICE ELECTIONS- The Corporation may establish minimum price elections below which levels of insurance shall not be offered.

        ‘(C) WHEAT CLASSES AND MALTING BARLEY- The Corporation shall, as the Corporation determines practicable, offer producers different price elections for classes of wheat and malting barley (including contract prices in the case of malting barley), in addition to the standard price election, that reflect different market prices, as determined by the Corporation. The Corporation shall, as the Corporation determines practicable, offer additional coverage for each class determined under this subparagraph and charge a premium for each class that is actuarially sound.

      ‘(7) FIRE AND HAIL COVERAGE- For levels of additional coverage equal to 65 percent or more of the recorded or appraised average yield indemnified at 100 percent of the expected market price, or an equivalent coverage, a producer may elect to delete from the additional coverage any coverage against damage caused by fire and hail if the producer obtains an equivalent or greater dollar amount of coverage for damage caused by fire and hail from an approved insurance provider. On written notice of the election to the company issuing the policy providing additional coverage and submission of evidence of substitute coverage on the commodity insured, the premium of the producer shall be reduced by an amount determined by the Corporation to be actuarially appropriate, taking into account the actuarial value of the remaining coverage provided by the Corporation. In no event shall the producer be given credit for an amount of premium determined to be greater than the actuarial value of the protection against losses caused by fire and hail that is included in the additional coverage for the crop.

      ‘(8) STATE PREMIUM SUBSIDIES- The Corporation may enter into an agreement with any State or agency of a State under which the State or agency may pay to the approved insurance provider an additional premium subsidy to further reduce the portion of the premium paid by producers in the State.

      ‘(9) LIMITATIONS ON ADDITIONAL COVERAGE- The Board may limit the availability of additional coverage under this subsection in any county or area, or on any farm, on the basis of the insurance risk involved. The Board shall not offer additional coverage equal to less than 50 percent of the recorded or appraised average yield indemnified at 100 percent of the expected market price, or an equivalent coverage.

      ‘(10) ADMINISTRATIVE FEE-

        ‘(A) FEE REQUIRED- Except as otherwise provided in this paragraph, if a producer elects to purchase additional coverage for a crop at a level that is less than 65 percent of the recorded or appraised average yield indemnified at 100 percent of the expected market price, or an equivalent coverage, the producer shall pay an administrative fee for the additional coverage. Subsection (b)(5) shall apply in determining the amount and use of the administrative fee or in determining whether to waive the administrative fee.

        ‘(B) EXCEPTION- If a producer elects to purchase additional coverage for a crop equal to 65 percent or more of the recorded or appraised average yield indemnified at 100 percent of the expected market price, or an equivalent coverage, the producer shall not be subject to the administrative fee required by this paragraph or subsection (b)(5). If the producer has already paid the administrative fee for a lower level of coverage for the crop, the administrative fee shall be refunded to the producer unless the refund would reduce to less than $200 the total amount of the administrative fees paid by the producer for 2 or more crops in the same county for which a lower level of coverage is obtained.

        ‘(C) ADDITIONAL FEE- If a producer elects to purchase additional coverage for a crop equal to or exceeding 65 percent of the recorded or appraised average yield and 100 percent of the expected market price or an equivalent coverage, the producer shall pay an administrative fee of $10 for the coverage. If a producer has already paid an administrative fee for lesser coverage for the crop, the fee for lesser coverage shall be refunded to the producer unless the producer has paid the maximum fee for lesser coverage and refund of the fee will not reduce the amount to be paid below the maximum amount.

        ‘(D) DEPOSIT OF FEES- Notwithstanding the authority granted to the Secretary under the Federal Crop Insurance Corporation account provisions of the Agricultural, Rural Development, Food and Drug Administration, and Related Agencies Appropriations Act, 1995, administrative fees collected under subparagraph (B) in excess of $100 per producer per county and under subparagraph (C) shall be deposited in the insurance fund established under section 516(c) to be available for the programs and activities of the Corporation.

    ‘(d) PREMIUMS-

      ‘(1) PREMIUMS REQUIRED- The Corporation shall fix adequate premiums for all the plans of insurance of the Corporation at such rates as the Board determines are actuarially sufficient to attain an expected loss ratio of not greater than 1.1 through September 30, 1998, and not greater than 1.075 after October 1, 1998.

      ‘(2) PREMIUM AMOUNTS- The premium amounts for catastrophic risk protection under subsection (b) and additional coverage under subsection (c) shall be fixed as follows:

        ‘(A) In the case of catastrophic risk protection, the amount of the premium shall be sufficient to cover anticipated losses and a reasonable reserve.

        ‘(B) In the case of additional coverage below 65 percent of the recorded or appraised average yield indemnified at 100 percent of the expected market price, or an equivalent coverage, but greater than 50 percent of the recorded or appraised average yield indemnified at 100 percent of the expected market price, or an equivalent coverage, the amount of the premium shall--

          ‘(i) be sufficient to cover anticipated losses and a reasonable reserve; and

          ‘(ii) include an amount for operating and administrative expenses, as determined by the Corporation.

        ‘(C) In the case of additional coverage equal to or greater than 65 percent of the recorded or appraised average yield indemnified at 100 percent of the expected market price, or an equivalent coverage, the amount of the premium shall--

          ‘(i) be sufficient to cover anticipated losses and a reasonable reserve; and

          ‘(ii) include an amount for operating and administrative expenses, as determined by the Corporation, on an industry-wide basis as a percentage of the amount of the premium used to define loss ratio.

    ‘(e) PAYMENT OF PORTION OF PREMIUM BY CORPORATION-

      ‘(1) IN GENERAL- For the purpose of encouraging the broadest possible participation of producers in the catastrophic risk protection provided under subsection (b) and the additional coverage provided under subsection (c), the Corporation shall pay a part of the premium in the amounts provided in accordance with this subsection.

      ‘(2) AMOUNT OF PAYMENT- The amount of the premium to be paid by the Corporation shall be as follows:

        ‘(A) In the case of catastrophic risk protection, the amount shall be equivalent to the premium established for catastrophic risk protection under subsection (d)(2)(A).

        ‘(B) In the case of coverage below 65 percent of the recorded or appraised average yield indemnified at 100 percent of the expected market price, or an equivalent coverage, but greater than 50 percent of the recorded or appraised average yield indemnified at 100 percent of the expected market price, or an equivalent coverage, the amount shall be equivalent to the amount of premium established for catastrophic risk protection coverage and the amount of operating and administrative expenses established under subsection (d)(2)(B).

        ‘(C) In the case of coverage equal to or greater than 65 percent of the recorded or appraised average yield indemnified at 100 percent of the expected market price, or an equivalent coverage, on an individual or area basis, the amount shall be equivalent to an amount equal to the premium established for 50 percent loss in yield indemnified at 75 percent of the expected market price and the amount of operating and administrative expenses established under subsection (d)(2)(C).

      ‘(3) PREMIUM REDUCTION- If an approved insurance provider determines that the provider may provide insurance more efficiently than the expense reimbursement amount established by the Corporation, the approved insurance provider may reduce, subject to the approval of the Corporation, the premium charged the insured by an amount corresponding to the efficiency. The approved insurance provider shall apply to the Corporation for authority to reduce the premium before making such a reduction, and the reduction shall be subject to the rules, limitations, and procedures established by the Corporation.

      ‘(4) INDIVIDUAL AND AREA CROP INSURANCE COVERAGE- The Corporation shall allow approved insurance providers to offer a plan of insurance to producers that combines both individual yield coverage and area yield coverage at a premium rate determined by the provider under the following conditions:

        ‘(A) The individual yield coverage shall be equal to or greater than catastrophic risk protection as described in subsection (b).

        ‘(B) The combined policy shall include area yield coverage that is offered by the Corporation or similar area coverage, as determined by the Corporation.

        ‘(C) The Corporation shall provide reinsurance on the area yield portion of the combined policy at the request of the provider, except that the provider shall agree to pay to the producer any portion of the area yield and loss indemnity payment received from the Corporation or a commercial reinsurer that exceeds the individual indemnity payment made by the provider to the producer.

        ‘(D) The Corporation shall pay a part of the premium equivalent to--

          ‘(i) the amount authorized under paragraph (2) (except provisions regarding operating and administrative expenses); and

          ‘(ii) the amount of operating and administrative expenses authorized by the Corporation for the area yield coverage portion of the combined policy.

        ‘(E) The provider shall provide all underwriting services for the combined policy, including the determination of individual yield coverage premium rates, the terms and conditions of the policy, and the acceptance and classification of applicants into risk categories, subject to subparagraph (F).

        ‘(F) The Corporation shall approve the combined policy unless the Corporation determines that the policy is not actuarially sound or that the interests of producers are not adequately protected.

    ‘(f) ELIGIBILITY-

      ‘(1) IN GENERAL- To participate in catastrophic risk protection coverage under this section, a producer shall submit an application at the local office of the Department or to an approved insurance provider.

      ‘(2) SALES CLOSING DATE- For coverage under this title, each producer shall purchase crop insurance on or before the sales closing date for the crop by providing the required information and executing the required documents. Subject to the goal of ensuring actuarial soundness for the crop insurance program, the sales closing date shall be established by the Corporation to maximize convenience to producers in obtaining benefits under price and production adjustment programs of the Department. Beginning with the 1995 crop year, the Corporation shall establish, for an insurance policy for each insurable crop that is planted in the spring, a sales closing date that is 30 days earlier than the corresponding sales closing date that was established for the 1994 crop year.

      ‘(3) RECORDS AND REPORTING- To obtain catastrophic risk protection under subsection (b) or additional coverage under subsection (c), a producer shall--

        ‘(A) provide, to the extent required by the Corporation, records acceptable to the Corporation of historical acreage and production of the crops for which the insurance is sought or accept a yield determined by the Corporation; and

        ‘(B) report acreage planted and prevented from planting by the designated acreage reporting date for the crop and location as established by the Corporation.

    ‘(g) YIELD DETERMINATIONS-

      ‘(1) IN GENERAL- Subject to paragraph (2), the Corporation shall establish crop insurance underwriting rules that ensure that yield coverage, as specified in this subsection, is provided to eligible producers obtaining catastrophic risk protection under subsection (b) or additional coverage under subsection (c).

      ‘(2) YIELD COVERAGE PLANS-

        ‘(A) ACTUAL PRODUCTION HISTORY- Subject to subparagraph (B), the yield for a crop shall be based on the actual production history for the crop, if the crop was produced on the farm without penalty during each of the 4 crop years immediately preceding the crop year for which actual production history is being established, building up to a production data base for each of the 10 consecutive crop years preceding the crop year for which actual production history is being established.

        ‘(B) ASSIGNED YIELD- If the producer does not provide satisfactory evidence of the yield of a commodity under subparagraph (A), the producer shall be assigned a yield that is not less than 65 percent of the transitional yield of the producer (adjusted to reflect actual production reflected in the records acceptable to the Corporation for continuous years), as specified in regulations issued by the Corporation based on production history requirements.

        ‘(C) AREA YIELD- The Corporation may offer a crop insurance plan based on an area yield that allows an insured producer to qualify for an indemnity if a loss has occurred in an area (as specified by the Corporation) in which the farm of the producer is located. Under an area yield plan, an insured producer shall be allowed to select the level of area production at which an indemnity will be paid consistent with such terms and conditions as are established by the Corporation.

        ‘(D) COMMODITY-BY-COMMODITY BASIS- A producer may choose between individual yield or area yield coverage or combined coverage (as provided in subsection (e)(4)), if available, on a commodity-by-commodity basis.

      ‘(3) TRANSITIONAL YIELDS FOR PRODUCERS OF FEED OR FORAGE-

        ‘(A) IN GENERAL- If a producer does not provide satisfactory evidence of a yield under paragraph (2)(A), the producer shall be assigned a yield that is at least 80 percent of the transitional yield established by the Corporation (adjusted to reflect the actual production history of the producer) if the Secretary determines that--

          ‘(i) the producer grows feed or forage primarily for on-farm use in a livestock, dairy, or poultry operation; and

          ‘(ii) over 50 percent of the net farm income of the producer is derived from the operation.

        ‘(B) YIELD CALCULATION- The Corporation shall--

          ‘(i) for the first year of participation of a producer, provide the assigned yield under this paragraph to the producer of feed or forage; and

          ‘(ii) for the second year of participation of the producer, apply the actual production history or assigned yield requirement, as provided in this subsection.

        ‘(C) TERMINATION OF AUTHORITY- The authority provided by this paragraph shall terminate on the date that is 3 years after the effective date of this paragraph.

    ‘(h) SUBMISSION OF POLICIES AND MATERIALS TO BOARD-

      ‘(1) IN GENERAL- In addition to any standard forms or policies that the Board may require be made available to producers under subsection (c), a person may prepare for submission or propose to the Board--

        ‘(A) other crop insurance policies and provisions of policies; and

        ‘(B) rates of premiums for multiple peril crop insurance pertaining to wheat, soybeans, field corn, and any other crops determined by the Secretary.

      ‘(2) SUBMISSION OF POLICIES- A policy or other material submitted to the Board under this subsection may be prepared without regard to the limitations contained in this title, including the requirements concerning the levels of coverage and rates and the requirement that a price level for each commodity insured must equal the expected market price for the commodity as established by the Board. In the case of such a policy, the payment by the Corporation of a portion of the premium of the policy may not exceed the amount that would otherwise be authorized under subsection (e).

      ‘(3) REVIEW AND APPROVAL BY THE BOARD- A policy or other material submitted to the Board under this subsection shall be reviewed by the Board and, if the Board finds that the interests of producers are adequately protected and that any premiums charged to the producers are actuarially appropriate, shall be approved by the Board for reinsurance and for sale to producers as an additional choice at actuarially appropriate rates and under appropriate terms and conditions. The Corporation may enter into more than 1 reinsurance agreement with the approved insurance provider simultaneously to facilitate the offering of the new policies.

      ‘(4) GUIDELINES FOR SUBMISSION AND REVIEW- The Corporation shall issue regulations to establish guidelines for the submission, and Board review, of policies or other material submitted to the Board under this subsection. At a minimum, the guidelines shall ensure the following:

        ‘(A) A proposal submitted to the Board under this subsection shall be considered as confidential commercial or financial information for purposes of section 552(b)(4) of title 5, United States Code, until approved by the Board. A proposal disapproved by the Board shall remain confidential commercial or financial information.

        ‘(B) The Board shall provide an applicant with the opportunity to present the proposal to the Board in person if the applicant so desires.

        ‘(C) The Board shall provide an applicant with notification of intent to disapprove a proposal not later than 30 days prior to making the disapproval. An applicant that receives the notification may modify the application of the applicant. Any modification shall be considered an original application for purposes of this paragraph.

        ‘(D) Specific guidelines shall prescribe the timing of submission of proposals under this subsection and timely consideration by the Board so that any approved proposal may be made available to all persons reinsured by the Corporation in a manner permitting the persons to participate, if the persons so desire, in offering such a proposal in the first crop year in which the proposal is approved by the Board for reinsurance, premium subsidy, or other support offered by this title.

      ‘(5) REQUIRED PUBLICATION- Any policy, provision of a policy, or rate approved under this subsection shall be published as a notice in the Federal Register and made available to all persons contracting with or reinsured by the Corporation under the terms and conditions of the contract between the Corporation and the person originally submitting the policy or other material.

      ‘(6) PILOT COST OF PRODUCTION RISK PROTECTION PLAN-

        ‘(A) IN GENERAL- The Corporation shall offer, to the extent practicable, a cost of production risk protection plan of insurance that indemnifies producers (including new producers) for insurable losses as provided in this paragraph.

        ‘(B) PILOT BASIS- The cost of production risk protection plan shall--

          ‘(i) be established as a pilot project for each of the 1996 and 1997 crop years; and

          ‘(ii) be carried out in a number of counties that is determined by the Corporation to be adequate to provide a comprehensive evaluation of the feasibility, effectiveness, and demand among producers for the plan.

        ‘(C) INSURABLE LOSS- An insurable loss shall be incurred by a producer if the gross income of the producer (as determined by the Corporation) is less than an amount determined by the Corporation, as a result of a reduction in yield or price resulting from an insured cause.

        ‘(D) DEFINITION OF NEW PRODUCER- As used in this paragraph, the term ‘new producer’ means a person that has not been actively engaged in farming for a share of the production of the insured crop for more than 2 crop years, as determined by the Secretary.

      ‘(7) ADDITIONAL PREVENTED PLANTING POLICY COVERAGE-

        ‘(A) IN GENERAL- Beginning with the 1995 crop year, the Corporation shall offer to producers additional prevented planting coverage that insures producers against losses in accordance with this paragraph.

        ‘(B) APPROVED INSURANCE PROVIDERS- Additional prevented planting coverage shall be offered by the Corporation through approved insurance providers.

        ‘(C) TIMING OF LOSS- A crop loss shall be covered by the additional prevented planting coverage if--

          ‘(i) crop insurance policies were obtained for--

            ‘(I) the crop year the loss was experienced; and

            ‘(II) the crop year immediately preceding the year of the prevented planting loss; and

          ‘(ii) the cause of the loss occurred--

            ‘(I) after the sales closing date for the crop in the crop year immediately preceding the loss; and

            ‘(II) before the sales closing date for the crop in the year in which the loss is experienced.

      ‘(8) PILOT PROGRAM OF ASSIGNED YIELDS FOR NEW PRODUCERS-

        ‘(A) PROGRAM REQUIRED- For each of the 1995 and 1996 crop years, the Corporation shall carry out a pilot program to assign to eligible new producers higher assigned yields than would otherwise be assigned to the producers under subsection (g). The Corporation shall include in the pilot program 30 counties that are determined by the Corporation to be adequate to provide a comprehensive evaluation of the feasibility, effectiveness, and demand among new producers for increased assigned yields.

        ‘(B) INCREASED ASSIGNED YIELDS- In the case of an eligible new producer participating in the pilot program, the Corporation shall assign to the new producer a yield that is equal to not less than 110 percent of the transitional yield otherwise established by the Corporation.

        ‘(C) ELIGIBLE NEW PRODUCER- The Secretary shall establish a definition of new producer for purposes of determining eligibility to participate in the pilot program.

    ‘(i) ADOPTION OF RATES AND COVERAGES- The Corporation shall adopt, as soon as practicable, rates and coverages that will improve the actuarial soundness of the insurance operations of the Corporation for those crops that are determined to be insured at rates that are not actuarially sound, except that no rate may be increased by an amount of more than 20 percent over the comparable rate of the preceding crop year.

    ‘(j) CLAIMS FOR LOSSES-

      ‘(1) IN GENERAL- Under rules prescribed by the Corporation, the Corporation may provide for adjustment and payment of claims for losses. The rules prescribed by the Corporation shall establish standards to ensure that all claims for losses are adjusted, to the extent practicable, in a uniform and timely manner.

      ‘(2) Denial of claims-

        ‘(A) IN GENERAL- Subject to subparagraph (B), if a claim for indemnity is denied by the Corporation or an approved provider, an action on the claim may be brought against the Corporation or Secretary only in the United States district court for the district in which the insured farm is located.

        ‘(B) STATUTE OF LIMITATIONS- A suit on the claim may be brought not later than 1 year after the date on which final notice of denial of the claim is provided to the claimant.

      ‘(3) INDEMNIFICATION- The Corporation shall provide approved insurance providers with indemnification, including costs and reasonable attorney fees incurred by the approved insurance provider, due to errors or omissions on the part of the Corporation.

    ‘(k) REINSURANCE-

      ‘(1) IN GENERAL- Notwithstanding any other provision of this title, the Corporation shall, to the maximum extent practicable, provide reinsurance to insurers approved by the Corporation that insure producers of any agricultural commodity under 1 or more plans acceptable to the Corporation.

      ‘(2) TERMS AND CONDITIONS- The reinsurance shall be provided on such terms and conditions as the Board may determine to be consistent with subsections (b) and (c) and sound reinsurance principles.

      ‘(3) SHARE OF RISK- The reinsurance agreements of the Corporation with the reinsured companies shall require the reinsured companies to bear a sufficient share of any potential loss under the agreement so as to ensure that the reinsured company will sell and service policies of insurance in a sound and prudent manner, taking into consideration the financial condition of the reinsured companies and the availability of private reinsurance.

      ‘(4) RATE- The rate established by the Board to reimburse approved insurance providers and agents for the administrative and operating costs of the providers and agents shall not exceed--

        ‘(A) for the 1997 reinsurance year, 29 percent of the premium used to define loss ratio;

        ‘(B) for the 1998 reinsurance year, 28 percent of the premium used to define loss ratio; and

        ‘(C) for the 1999 reinsurance year, 27.5 percent of the premium used to define loss ratio.

      ‘(5) COST AND REGULATORY REDUCTION- Consistent with section 118 of the Federal Crop Insurance Reform Act of 1994, and consistent with maintenance of program integrity, prevention of fraud and abuse, the need for program expansion, and improvement of quality of service to customers, the Board shall alter program procedures and administrative requirements in order to reduce the administrative and operating costs of approved insurance providers and agents in an amount that corresponds to any reduction in the reimbursement rate required under paragraph (4) during the 5-year period beginning on the date of enactment of this paragraph.

      ‘(6) AGENCY DISCRETION- The determination of whether the Corporation is achieving, or has achieved, corresponding administrative cost savings shall not be subject to administrative review, and is wholly committed to agency discretion within the meaning of section 701(a)(2) of title 5, United States Code.

      ‘(7) PLAN- The Corporation shall submit to Congress a plan outlining the measures that will be used to achieve the reduction required under paragraph (5). If the Corporation can identify additional cost reduction measures, the Corporation shall describe the measures in the plan.

    ‘(l) OPTIONAL COVERAGES- The Corporation may offer specific risk protection programs, including protection against prevented planting, wildlife depredation, tree damage and disease, and insect infestation, under such terms and conditions as the Board may determine, except that no program may be undertaken if insurance for the specific risk involved is generally available from private companies.

    ‘(m) RESEARCH-

      ‘(1) IN GENERAL- Except as provided in paragraph (2), the Corporation may conduct research, surveys, pilot programs, and investigations relating to crop insurance and agriculture-related risks and losses including insurance on losses involving reduced forage on rangeland caused by drought and by insect infestation, livestock poisoning and disease, destruction of bees due to the use of pesticides, and other unique special risks related to fruits, nuts, vegetables, aquacultural species, forest industry needs (including appreciation), and other agricultural products as determined by the Board.

      ‘(2) EXCEPTION- No action may be undertaken with respect to a risk under paragraph (1) if insurance protection against the risk is generally available from private companies.

      ‘(3) EVALUATION- After the completion of any pilot program under this subsection, the Corporation shall evaluate the pilot program and submit to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate, a report of the operations of the pilot program, including the evaluation by the Corporation of the pilot program and the recommendations of the Corporation with respect to implementing the program on a national basis.’.

SEC. 107. CROP INSURANCE YIELD COVERAGE.

    Section 508A (7 U.S.C. 1508a) is repealed.

SEC. 108. PREEMPTION.

    Section 511 (7 U.S.C. 1511) is amended by adding at the end the following sentence: ‘A contract of insurance of the Corporation, and a contract of insurance reinsured by the Corporation, shall be exempt from taxation imposed by any State, municipality, or local taxing authority.’.

SEC. 109. ADVISORY COMMITTEE.

    The Act is amended by inserting after section 514 (7 U.S.C. 1514) the following new section:

‘SEC. 515. ADVISORY COMMITTEE FOR FEDERAL CROP INSURANCE.

    ‘(a) ESTABLISHMENT- The Secretary may establish within the Department an advisory committee to be known as the ‘Advisory Committee for Federal Crop Insurance’.

    ‘(b) PRIMARY RESPONSIBILITY- The primary responsibility of the Advisory Committee shall be to advise the Secretary on the implementation of this title and on other issues related to crop insurance, as determined by the Manager of the Corporation.

    ‘(c) MEMBERSHIP- The Advisory Committee shall be composed of the Manager of the Corporation, the Secretary (or a designee of the Secretary), and not fewer than 12 members representing organizations and agencies involved in the provision of crop insurance under this title. Not fewer than 3 of the members of the Advisory Committee shall be representatives of the specialty crops industry. The organizations or agencies represented by members on the Advisory Committee may include insurance companies, insurance agents, farm producer organizations, experts on agronomic practices, and banking and lending institutions.

    ‘(d) Administrative Provisions-

      ‘(1) TERMS- Members of the Advisory Committee (other than the Manager of the Corporation and the Secretary) shall be appointed by the Secretary for a term of up to 2 years from nominations made by the organizations and agencies specified in subsection (c). The terms of the members (other than the Manager of the Corporation and the Secretary) shall be staggered.

      ‘(2) CHAIRPERSON- The Advisory Committee shall be chaired by the Manager of the Corporation.

      ‘(3) MEETINGS- The Advisory Committee shall meet at least annually. The meetings of the Advisory Committee shall be publicly announced in advance and shall be open to the public. Appropriate records of the activities of the Advisory Committee shall be kept and made available to the public on request.

    ‘(e) REPORTS- Not later than June 30 of each year, the Advisory Committee shall submit to the Secretary a report specifying the conclusions and recommendations of the Advisory Committee regarding--

      ‘(1) the progress toward implementation of this title;

      ‘(2) the actuarial soundness of the Federal crop insurance program;

      ‘(3) the rate of producer participation in both catastrophic risk protection under section 508(b) and additional coverage under section 508(c); and

      ‘(4) the progress toward improved crop insurance coverage for new and specialty crops.

    ‘(f) TERMINATION OF AUTHORITY- The authority provided by this section shall terminate on September 30, 1998.’.

SEC. 110. FUNDING.

    Section 516 (7 U.S.C. 1516) is amended to read as follows:

‘SEC. 516. FUNDING.

    ‘(a) AUTHORIZATION OF APPROPRIATIONS-

      ‘(1) DISCRETIONARY EXPENSES- There are authorized to be appropriated for each of fiscal years 1995 through 2001 such sums as are necessary to cover--

        ‘(A) the salaries and expenses of the Corporation; and

        ‘(B) the administrative and operating expenses of the Corporation for the sales commissions of agents.

      ‘(2) MANDATORY EXPENSES- There are authorized to be appropriated such sums as are necessary to cover--

        ‘(A) in the case of each of the 1995 through 1997 reinsurance years, the administrative and operating expenses of the Corporation for the sales commissions of agents, consistent with subsection (b)(1);

        ‘(B) premium subsidies, including the administrative and operating expenses of an approved insurance provider for the delivery of policies with additional coverage; and

        ‘(C) payments for noninsured assistance losses under section 519.

    ‘(b) PAYMENT OF EXPENSES-

      ‘(1) ADMINISTRATIVE AND OPERATING EXPENSES-

        ‘(A) IN GENERAL- Except as provided in subparagraph (B), in the case of each of the 1995 through 1997 reinsurance years, the Corporation is authorized to pay from the insurance fund established under subsection (c), the administrative and operating expenses of an approved insurance provider, including expenses covered by subsection (a)(1)(B).

        ‘(B) SALES COMMISSIONS FOR 1997 REINSURANCE YEAR- In the case of the 1997 reinsurance year, the amount of the payments from the insurance fund established under subsection (c) for the expenses of the Corporation for the sales commissions of agents may not exceed 8.5 percent of the total amount of premiums paid for additional coverage for the 1997 reinsurance year.

      ‘(2) OTHER EXPENSES- The Corporation is authorized to pay from the insurance fund established under subsection (c)--

        ‘(A) all other expenses of the Corporation (other than expenses covered by subsection (a)(1)), including all premium subsidies, noninsured assistance benefits, and indemnities;

        ‘(B) subject to paragraph (1)(B), in the case of each of the 1995 through 1997 reinsurance years, all administrative and expense reimbursements due under a reinsurance agreement with an approved insurance provider; and

        ‘(C) to the extent necessary, expenses incurred by the Corporation to carry out research and development.

    ‘(c) INSURANCE FUND-

      ‘(1) IN GENERAL- There is established an insurance fund, for the deposit of premium income and amounts made available under subsection (a)(2), to be available without fiscal year limitation.

      ‘(2) COMMODITY CREDIT CORPORATION FUNDS- If at any time the amounts in the insurance fund are insufficient to enable the Corporation to carry out subsection (b), to the extent the funds of the Commodity Credit Corporation are available--

        ‘(A) the Corporation may request the Secretary to use the funds of the Commodity Credit Corporation to carry out subsection (b); and

        ‘(B) the Secretary may use the funds of the Commodity Credit Corporation to carry out subsection (b).’.

SEC. 111. NONINSURED CROP DISASTER ASSISTANCE.

    Section 519 (7 U.S.C. 1519) is amended to read as follows:

‘SEC. 519. NONINSURED CROP DISASTER ASSISTANCE PROGRAM.

    ‘(a) ESTABLISHMENT OF PROGRAM-

      ‘(1) ESTABLISHMENT- In the case of an eligible crop described in paragraph (2), the Corporation shall establish a noninsured crop disaster assistance program to provide coverage equivalent to the catastrophic risk protection otherwise available under section 508(b).

      ‘(2) ELIGIBLE CROPS-

        ‘(A) IN GENERAL- As used 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) 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, 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 Corporation may require.

      ‘(2) RECORDS- A producer shall annually provide records, as required by the Corporation, of previous crop acreage, acreage yields, and production, or the producer shall accept a yield under subsection (e)(3) determined by the Corporation.

      ‘(3) ACREAGE REPORTS- A producer shall provide reports on acreage planted or prevented from being planted, as required by the Corporation, by the designated acreage reporting date for the crop and location as established by the Corporation.

    ‘(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 Corporation.

      ‘(2) PREVENTED PLANTING- Subject to paragraph (1), the Corporation 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 Corporation 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 Corporation, factored for the interest of the producer for the crop.

    ‘(d) PAYMENT- The Corporation 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 1995 through 1998 crop years, 60 percent of the average market price for the crop (or any comparable coverage determined by the Corporation); 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 Corporation); by

      ‘(3) a payment rate for the type of crop (as determined by the Corporation) 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, is determined by the Corporation.

    ‘(e) YIELD DETERMINATIONS-

      ‘(1) ESTABLISHMENT- The Corporation shall establish farm yields for purposes of providing noninsured crop disaster assistance under this section.

      ‘(2) ACTUAL PRODUCTION HISTORY- The Corporation 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 Corporation shall assign to the producer a yield equal to not less than 65 percent of the transitional yield of the producer (adjusted to reflect actual production reflected in the records acceptable to the Corporation for continuous years), as specified in regulations issued by the Corporation based on production history requirements.

      ‘(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 Corporation. If the Corporation determines that the documentation provided is not sufficient, the Corporation 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 Deputy Administrator for State and County Operations of the Agricultural Stabilization and Conservation Service; and

          ‘(II) the Deputy 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 Corporation 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) PAYMENT OF LOSSES- Payments for noninsured crop disaster assistance losses under this section shall be made from the insurance fund established under section 516. The losses shall not be included in calculating the premiums charged to producers for insurance under section 508.

    ‘(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 Corporation.’.

SEC. 112. PAYMENT AND INCOME LIMITATIONS.

    Section 519 (7 U.S.C. 1519) (as amended by section 111) is further amended by adding at the end the following new subsection:

    ‘(h) PAYMENT AND INCOME LIMITATIONS-

      ‘(1) DEFINITIONS- As used 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 title may not exceed $100,000.

      ‘(3) LIMITATION ON MULTIPLE BENEFITS FOR SAME LOSS- If a producer who is eligible to receive benefits under catastrophic risk protection under section 508(b) or noninsured crop disaster assistance 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 title or under the other program, but not both. A producer who purchases additional coverage under section 508(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.

      ‘(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.’.

SEC. 113. PRODUCER ELIGIBILITY.

    Section 520 (7 U.S.C. 1520) is amended to read as follows:

‘SEC. 520. PRODUCER ELIGIBILITY.

    ‘Except as otherwise provided in this title, a producer shall not be denied insurance under this title if--

      ‘(1) for purposes of catastrophic risk protection coverage, the producer is a ‘person’ (as defined by the Secretary); and

      ‘(2) for purposes of any other plan of insurance, the producer is 18 years of age and has a bona fide insurable interest in a crop as an owner-operator, landlord, tenant, or sharecropper.’.

SEC. 114. INELIGIBILITY FOR CATASTROPHIC RISK AND NONINSURED ASSISTANCE PAYMENTS.

    The Act (7 U.S.C. 1501 et seq.) is amended by adding at the end the following new section:

‘SEC. 521. INELIGIBILITY FOR CATASTROPHIC RISK AND NONINSURED ASSISTANCE PAYMENTS.

    ‘If the Secretary determines that a person has knowingly adopted a material scheme or device to obtain catastrophic risk, additional coverage, or noninsured assistance benefits under this title to which the person is not entitled, has evaded this title, or has acted with the purposes of evading this title, the person shall be ineligible to receive all benefits applicable to the crop year for which the scheme or device was adopted. The authority provided by this section shall be in addition to, and shall not supplant, the authority provided by section 506(n).’.

SEC. 115. ELIMINATION OF GENDER REFERENCES.

    (a) MANAGEMENT OF CORPORATION- Section 505 (7 U.S.C. 1505) is amended--

      (1) in subsection (a), by striking the third sentence and inserting ‘The Board shall be appointed by, and hold office at the pleasure of, the Secretary. The Secretary shall not be a member of the Board.’; and

      (2) in subsection (d)--

        (A) by striking ‘upon him’; and

        (B) by striking ‘He shall be appointed by,’ and inserting ‘The manager shall be appointed by,’.

    (b) PERSONNEL- Section 507 (7 U.S.C. 1507) is amended--

      (1) in subsection (a), by striking ‘as he may determine: Provided, That’ and inserting ‘as the Secretary may determine appropriate. However,’; and

      (2) in subsection (d), by striking ‘as he may request’ and inserting ‘that the Secretary requests’.

    (c) INDEMNITIES EXEMPT FROM LEVY- Section 509 (7 U.S.C. 1509) is amended by striking ‘or his estate’ and inserting ‘or the estate of the insured’.

SEC. 116. PREVENTED PLANTING.

    (a) IN GENERAL- Effective for the 1994 crop year, a producer described in subsection (b) shall receive compensation under the prevented planting coverage policy provision described in subsection (b)(1) by--

      (1) obtaining from the Secretary of Agriculture the applicable amount that is payable under the conserving use program described in subsection (b)(4); and

      (2) obtaining from the Federal Crop Insurance Corporation the amount that is equal to the difference between--

        (A) the amount that is payable under the conserving use program; and

        (B) the amount that is payable under the prevented planting coverage policy.

    (b) ELIGIBLE PRODUCERS- Subsection (a) shall apply to a producer who--

      (1) purchased a prevented planting policy for the 1994 crop year from the Federal Crop Insurance Corporation prior to the spring sales closing date for the 1994 crop year;

      (2) is unable to plant a crop due to major, widespread flooding in the Midwest, or excessive ground moisture, that occurred prior to the spring sales closing date for the 1994 crop year;

      (3) had a reasonable expectation of planting a crop on the prevented planting acreage for the 1994 crop year; and

      (4) participates in a conserving use program established for the 1994 crop of wheat, feed grains, upland cotton, or rice established under section 107B(c)(1)(E), 105B(c)(1)(E), 103B(c)(1)(D), or 101B(c)(1)(D), respectively, of the Agricultural Act of 1949 (7 U.S.C. 1445b-3a(c)(1)(E), 1444f(c)(1)(E), 1444-2(c)(1)(D), or 1441-2(c)(1)(D)).

    (c) OILSEED PREVENTED PLANTING PAYMENTS-

      (1) IN GENERAL- Effective for the 1994 crop year, a producer of a crop of oilseeds (as defined in section 205(a) of the Agricultural Act of 1949 (7 U.S.C. 1446f(a))) shall receive a prevented planting payment for the crop if the requirements of paragraphs (1), (2), and (3) of subsection (b) are satisfied.

      (2) SOURCE OF PAYMENT- The total amount of payments required under this subsection shall be made by the Federal Crop Insurance Corporation.

    (d) PAYMENT- A payment under this section may not be made before October 1, 1994.

SEC. 117. REPORT ON IMPROVING DISSEMINATION OF CROP INSURANCE INFORMATION.

    Not later than 180 days after the date of enactment of this Act and at the end of each of the 2 1-year periods thereafter, the Federal Crop Insurance Corporation shall submit a report to Congress containing a plan to implement a sound program for producer education regarding the crop insurance program and for the dissemination of crop insurance information to producers, as required by section 508(a)(5) of the Federal Crop Insurance Act (as amended by section 106).

SEC. 118. CROP INSURANCE PROVIDER EVALUATION.

    (a) IN GENERAL- The Comptroller General of the United States and the Federal Crop Insurance Corporation (referred to in this section as the ‘Corporation’) shall jointly evaluate the financial arrangement between the Corporation and approved insurance providers to determine the quality, costs, and efficiencies of providing the benefits of multiple peril crop insurance to producers of agricultural commodities covered under the Federal Crop Insurance Act (7 U.S.C. 1501 et seq.).

    (b) COLLECTION OF INFORMATION AND PROPOSALS- The Corporation shall require private insurance providers and agents to supply, and the private insurance providers and agents shall supply, records and information necessary to make the determinations and evaluations required under this section. The Corporation shall solicit from the approved insurance providers and agents proposals for modifying or altering the requirements, regulations, procedures, and processes related to implementing the Federal Crop Insurance Act to reduce the operating and administrative costs of the providers and agents.

    (c) INITIAL REPORT- Not later than 180 days after receipt of information and cost-reduction proposals under subsection (b), the Corporation shall evaluate the information and proposals obtained and report the results of the evaluation to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate.

    (d) FINAL REPORT- Not later than 2 years after the date of enactment of this Act, the Comptroller General and the Corporation shall submit a final report that provides the evaluation required under subsection (a) to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate. In making the evaluation, the Comptroller General and the Corporation shall--

      (1) consider the changes made by the Corporation in response to increased program participation resulting from the enactment of this Act;

      (2) include an evaluation and opinion of the accuracy and reasonableness of--

        (A) the average actual costs for approved insurance providers to deliver multiple peril crop insurance;

        (B) the cost per policy of complying with the requirements, regulations, procedures, and processes of the Federal Crop Insurance Act;

        (C) the cost differences for various provider firm sizes and any business delivered by the Federal Government;

        (D) the adequacy of the standard reimbursement for potential new providers; and

        (E) the identification of any new costs related to the enactment of this Act not previously identified in the information reported by the providers;

      (3) compare delivery costs of multiple peril crop insurance to other insurance coverages that the provider may sell and determine the extent, if any, to which any funds provided to carry out the Federal Crop Insurance Act are being used to fund any other business enterprise operated by the provider;

      (4)(A) assess alternative methods for reimbursing providers for reasonable and necessary expenses associated with delivery of multiple peril crop insurance;

      (B) recommend changes under this paragraph that reasonably demonstrate the need to achieve the greatest operating efficiencies on the part of the provider and the Corporation has been recognized; and

      (C) identify areas for improved operating efficiencies, if any, in the requirements made by the Corporation for compliance and program integrity;

      (5) assess the potential for alternative forms of reinsurance arrangements for providers of different firm sizes, taking into consideration--

        (A) the need to achieve a reasonable return on the capital of the provider compared to other lines of insurance;

        (B) the relative risk borne by the provider for the different lines of insurance;

        (C) the availability and price of commercial reinsurance; and

        (D) any additional costs that may be incurred by the Federal Government in carrying out the Federal Crop Insurance Act; and

      (6) include an analysis of the effect of the current or proposed reinsurance arrangements on providers having different business levels.

    (e) INFORMATION-

      (1) PRIVACY- In conducting the evaluation required by this section, the Comptroller General and the Corporation shall maintain the privacy of proprietary information.

      (2) SUBPOENAS- The Comptroller General shall have the power to subpoena information relevant to the evaluation required by this section from any private insurance provider. The Comptroller General shall allow the Corporation access to the information subpoenaed taking into consideration the necessity of preserving the privacy of proprietary information.

SEC. 119. CONFORMING AMENDMENTS.

    (a) PRICE SUPPORT PROGRAMS-

      (1) IN GENERAL- Title IV of the Agricultural Act of 1949 (7 U.S.C. 1421 et seq.) is amended by adding at the end the following new section:

‘SEC. 427. CROP INSURANCE REQUIREMENT.

    ‘As a condition of receiving any benefit (including payments) under title I or II for each of the 1995 and subsequent crops of tobacco, rice, extra long staple cotton, upland cotton, feed grains, wheat, peanuts, oilseeds, and sugar, a producer must obtain at least catastrophic risk protection insurance coverage under section 508 of the Federal Crop Insurance Act (7 U.S.C. 1508) for the crop and crop year for which the benefit is sought, if the coverage is offered by the Corporation.’.

      (2) RICE- Section 101B(c) of such Act (7 U.S.C. 1441-2(c)) is amended--

        (A) in paragraph (1), by striking subparagraph (F); and

        (B) by striking paragraph (2) and inserting the following new paragraph:

      ‘(2) CROP INSURANCE REQUIREMENT- A producer shall obtain catastrophic risk protection insurance coverage in accordance with section 427.’.

      (3) UPLAND COTTON- Section 103B(c) of such Act (7 U.S.C. 1444-2(c)) is amended--

        (A) in paragraph (1), by striking subparagraph (F); and

        (B) by striking paragraph (2) and inserting the following new paragraph:

      ‘(2) CROP INSURANCE REQUIREMENT- A producer shall obtain catastrophic risk protection insurance coverage in accordance with section 427.’.

      (4) FEED GRAINS- Section 105B(c) of such Act (7 U.S.C. 1444f(c)) is amended--

        (A) in paragraph (1), by striking subparagraph (G); and

        (B) by striking paragraph (2) and inserting the following new paragraph:

      ‘(2) CROP INSURANCE REQUIREMENT- A producer shall obtain catastrophic risk protection insurance coverage in accordance with section 427.’.

      (5) WHEAT- Section 107B(c) of such Act (7 U.S.C. 1445b-3a(c)) is amended--

        (A) in paragraph (1), by striking subparagraph (G); and

        (B) by striking paragraph (2) and inserting the following new paragraph:

      ‘(2) CROP INSURANCE REQUIREMENT- A producer shall obtain catastrophic risk protection insurance coverage in accordance with section 427.’.

      (6) DISASTER PAYMENTS- Section 208 of such Act (7 U.S.C. 1446i) is repealed.

    (b) FARMERS HOME ADMINISTRATION PROGRAMS- The Consolidated Farm and Rural Development Act (7 U.S.C. 1921 et seq.) is amended by adding at the end the following new section:

‘SEC. 371. CROP INSURANCE REQUIREMENT.

    ‘(a) IN GENERAL- As a condition of obtaining any benefit (including a direct loan, loan guarantee, or payment) described in subsection (b), a borrower must obtain at least catastrophic risk protection insurance coverage under section 508 of the Federal Crop Insurance Act (7 U.S.C. 1508) for the crop and crop year for which the benefit is sought, if the coverage is offered by the Corporation.

    ‘(b) APPLICABLE BENEFITS- Subsection (a) shall apply to--

      ‘(1) a farm ownership loan (FO) under section 303;

      ‘(2) an operating loan (OL) under section 312; and

      ‘(3) an emergency loan (EM) under section 321.’.

    (c) DISASTER ASSISTANCE- Subtitle B of title XXII of the Food, Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 1421 note) is amended by striking chapter 3.

    (d) EMERGENCY APPROPRIATIONS-

      (1) IN GENERAL- Effective January 1, 1995, section 251(b)(2)(D)(i) of the Balanced Budget and Emergency Deficit Control Act of 1985 (2 U.S.C. 901(b)(2)(D)(i)) is amended by adding at the end the following new sentence: ‘This subparagraph shall not apply to appropriations to cover agricultural crop disaster assistance.’.

      (2) EMERGENCY LEGISLATION- Effective January 1, 1995, section 252(e) of such Act (2 U.S.C. 902(e)) is amended by adding at the end the following new sentence: ‘This subsection shall not apply to direct spending provisions to cover agricultural crop disaster assistance.’.

    (e) FALSE STATEMENTS- Section 1014 of title 18, United States Code, is amended by inserting ‘or a company the Corporation reinsures’ after ‘Federal Crop Insurance Corporation’.

    (f) TECHNICAL AMENDMENTS-

      (1) The first sentence of section 506(d) (7 U.S.C. 1506(d)) is amended by striking ‘508(f)’ and inserting ‘508(j)’.

      (2) The last sentence of section 507(c) (7 U.S.C. 1507(c)) is amended by striking ‘508(b)’ and inserting ‘508(h)’.

      (3) Section 518 (7 U.S.C. 1518) is amended by striking ‘(k)’ and inserting ‘(m)’.

SEC. 120. EFFECTIVE DATE.

    Except as otherwise provided in this title, this title and the amendments made by this title shall become effective on the date of enactment of this Act and shall apply to the provision of crop insurance under the Federal Crop Insurance Act (7 U.S.C. 1501 et seq.) beginning with the 1995 crop year. With respect to the 1994 crop year, the Federal Crop Insurance Act (as in effect on the day before the date of enactment of this Act) shall continue to apply.

TITLE II--DEPARTMENT OF AGRICULTURE REORGANIZATION

SEC. 201. SHORT TITLE.

    (a) SHORT TITLE- This title may be cited as the ‘Department of Agriculture Reorganization Act of 1994’.

SEC. 202. PURPOSE.

    The purpose of this title is to provide the Secretary of Agriculture with the necessary authority to streamline and reorganize the Department of Agriculture to achieve greater efficiency, effectiveness, and economies in the organization and management of the programs and activities carried out by the Department.

SEC. 203. DEFINITIONS.

    Except where the context requires otherwise, for purposes of this title:

      (1) DEPARTMENT- The term ‘Department’ means the Department of Agriculture.

      (2) NATIONAL APPEALS DIVISION- The term ‘National Appeals Division’ means the National Appeals Division of the Department established under section 272.

      (3) SECRETARY- The term ‘Secretary’ means the Secretary of Agriculture.

      (4) FUNCTION- The term ‘function’ means an administrative, financial, or regulatory activity of an agency, office, officer, or employee of the Department.

Subtitle A--General Reorganization Authorities

SEC. 211. TRANSFER OF DEPARTMENT FUNCTIONS TO SECRETARY OF AGRICULTURE.

    (a) TRANSFER OF FUNCTIONS- Except as provided in subsection (b), there are transferred to the Secretary of Agriculture all functions of all agencies, offices, officers, and employees of the Department that are not already vested in the Secretary on the date of the enactment of this Act.

    (b) EXCEPTIONS- Subsection (a) shall not apply to the following functions:

      (1) Functions vested by subchapter II of chapter 5 of title 5, United States Code, in administrative law judges employed by the Department.

      (2) Functions vested by the Inspector General Act of 1978 (5 U.S.C. App.) in the Inspector General of the Department.

      (3) Functions vested by chapter 9 of title 31, United States Code, in the Chief Financial Officer of the Department.

      (4) Functions vested in the corporations of the Department or the boards of directors and officers of such corporations.

      (5) Functions vested in the Alternative Agricultural Research and Commercialization Board by the Alternative Agricultural Research and Commercialization Act of 1990 (7 U.S.C. 5901 et seq.).

SEC. 212. AUTHORITY OF SECRETARY TO DELEGATE TRANSFERRED FUNCTIONS.

    (a) DELEGATION OF AUTHORITY-

      (1) DELEGATION AUTHORIZED- Subject to paragraph (2), the Secretary may delegate to any agency, office, officer, or employee of the Department the authority to perform any function transferred to the Secretary under section 211(a) or any other function vested in the Secretary as of the date of the enactment of this Act. The authority provided in the preceding sentence includes the authority to establish, consolidate, alter, or discontinue any agency, office, or other administrative unit of the Department.

      (2) CONDITION ON AUTHORITY- The delegation authority provided by paragraph (1) shall be subject to--

        (A) sections 232, 251(d), 273, and 304 and subsections (a) and (b)(1) of section 261;

        (B) sections 502 and 503 of the Agricultural Trade Act of 1978 (7 U.S.C. 5692 and 5693); and

        (C) section 8(b)(5) of the Soil Conservation and Domestic Allotment Act (16 U.S.C. 590h(b)(5)).

    (b) COST-BENEFIT ANALYSIS REQUIRED FOR NAME CHANGE-

      (1) ANALYSIS REQUIRED- Except as provided in paragraph (2), the Secretary shall conduct a cost-benefit analysis before changing the name of any agency, office, division, or other unit of the Department to ensure that the benefits to be derived from changing the name of the agency, office, division, or other unit outweigh the expense of executing the name change.

      (2) EXCEPTION- Paragraph (1) shall not apply with respect to any name change required or authorized by this title.

    (c) PUBLIC COMMENT ON PROPOSED REORGANIZATION- To the extent that the implementation of the authority provided to the Secretary by this title to reorganize the Department involves the creation of new agencies or offices within the Department or the delegation of major functions or major groups of functions to any agency or office of the Department (or the officers or employees of such agency or office), the Secretary shall, to the extent considered practicable by the Secretary--

      (1) give appropriate advance public notice of the proposed reorganization action or delegation; and

      (2) afford appropriate opportunity for interested parties to comment on the proposed reorganization action or delegation.

    (d) INTERAGENCY TRANSFER OF RECORDS, PROPERTY, PERSONNEL, AND FUNDS-

      (1) RELATED TRANSFERS- Subject to paragraph (2), as part of the transfer or delegation of a function of the Department made or authorized by this title, the Secretary may transfer within the Department--

        (A) any of the records, property, or personnel affected by the transfer or delegation of the function; and

        (B) unexpended balances (available or to be made available for use in connection with the transferred or delegated function) of appropriations, allocations, or other funds of the Department.

      (2) APPLICABLE LAW RELATING TO FUNDS TRANSFER- Section 1531 of title 31, United States Code, shall apply to any transfer of funds under paragraph (1).

    (e) EXHAUSTION OF ADMINISTRATIVE APPEALS- Notwithstanding any other provision of law, a person shall exhaust all administrative appeal procedures established by the Secretary or required by law before the person may bring an action in a court of competent jurisdiction against--

      (1) the Secretary;

      (2) the Department; or

      (3) an agency, office, officer, or employee of the Department.

SEC. 213. REDUCTIONS IN NUMBER OF DEPARTMENT PERSONNEL.

    (a) DEFINITIONS- For purposes of this section:

      (1) HEADQUARTERS OFFICES- The term ‘headquarters offices’, with respect to agencies, offices, or other administrative units of the Department, means the offices, functions, and employee positions that are located or performed--

        (A) in Washington, District of Columbia; or

        (B) in such other locations as are identified by the Secretary for purposes of this section.

      (2) FIELD STRUCTURE- The term ‘field structure’ means the offices, functions, and employee positions of all agencies, offices, or other administrative units of the Department, other than the headquarters offices, except that the term does not include State, county, or area committees established under section 8(b)(5) of the Soil Conservation and Domestic Allotment Act (16 U.S.C. 590h(b)(5)). The term includes the physical and geographic locations of such agencies, offices, or other administrative units.

    (b) NUMBER OF REDUCTIONS REQUIRED- The Secretary shall achieve Federal employee reductions of at least 7,500 staff years within the Department by the end of fiscal year 1999. Reductions in the number of full-time equivalent positions within the Department achieved under section 5 of the Federal Workforce Restructuring Act of 1994 (Public Law 103-226; 108 Stat. 115; 5 U.S.C. 3101 note) shall be counted toward the employee reductions required under this section.

    (c) EMPHASIS ON HEADQUARTERS OFFICES REDUCTIONS- In achieving the employee reductions required by subsection (b), the Secretary shall pursue a goal so that the percentage of the total number of employee staff years reduced in headquarters offices is at least twice the percentage of the total number of employee staff years reduced in the field structure.

    (d) SCHEDULE- The personnel reductions in headquarters offices and in the field structure should be accomplished concurrently in a manner determined by the Secretary.

SEC. 214. CONSOLIDATION OF HEADQUARTERS OFFICES.

    Subject to the availability of appropriated funds for this purpose, the Secretary shall develop and carry out a plan to consolidate offices located in Washington, District of Columbia, of agencies, offices, and other administrative units of the Department.

SEC. 215. COMBINATION OF FIELD OFFICES.

    (a) COMBINATION OF OFFICES REQUIRED- Where practicable and to the extent consistent with efficient, effective, and improved service, the Secretary shall combine field offices of agencies within the Department to reduce personnel and duplicative overhead expenses.

    (b) JOINT USE OF RESOURCES AND OFFICES REQUIRED- When two or more agencies of the Department share a common field office, the Secretary shall require the agencies to jointly use office space, equipment, office supplies, administrative personnel, and clerical personnel associated with that field office.

SEC. 216. IMPROVEMENT OF INFORMATION SHARING.

    Whenever the Secretary procures or uses computer systems, as may be provided for in advance in appropriations Acts, the Secretary shall do so in a manner that enhances efficiency, productivity, and client services and is consistent with the goal of promoting computer information sharing among agencies of the Department.

SEC. 217. REPORTS BY THE SECRETARY.

    (a) IN GENERAL- Subject to subsection (b), notwithstanding any other provision of law, the Secretary may, but shall not be required to, prepare and submit any report solely to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate.

    (b) LIMITATION- For each fiscal year, the Secretary may not prepare and submit more than 30 reports referred to in subsection (a).

    (c) SELECTION OF REPORTS- In consultation with the Committee on Agriculture of the House of Representatives and the Com- mittee on Agriculture, Nutrition, and Forestry of the Senate, the Secretary shall determine which reports, if any, the Secretary will prepare and submit in accordance with subsection (b).

SEC. 218. ASSISTANT SECRETARIES OF AGRICULTURE.

    (a) AUTHORIZATION- The Secretary is authorized to establish in the Department the positions of--

      (1) Assistant Secretary of Agriculture for Congressional Relations;

      (2) Assistant Secretary of Agriculture for Administration; and

      (3) Assistant Secretary of Agriculture for Marketing and Regulatory Programs.

    (b) CONFIRMATION REQUIRED- If the Secretary establishes any position of Assistant Secretary authorized under subsection (a), the Assistant Secretary shall be appointed by the President, by and with the advice and consent of the Senate.

    (c) SUCCESSION- Any official who is serving as Assistant Secretary of Agriculture for Administration or Assistant Secretary of Agriculture for Congressional Relations on the date of the enactment of this Act and who was appointed as such Assistant Secretary by the President, by and with the advice and consent of the Senate, shall not be required to be reappointed under subsection (b) to the successor position authorized under subsection (a) if the Secretary establishes the position, and the official occupies the new position, within 180 days after the date of the enactment of this Act (or such later date set by the Secretary if litigation delays rapid succession).

    (d) EXECUTIVE SCHEDULE- Section 5315 of title 5, United States Code, is amended by striking ‘Assistant Secretaries of Agriculture (7).’ and inserting ‘Assistant Secretaries of Agriculture (3).’.

    (e) REPEAL OF SUPERSEDED PROVISIONS REGARDING ASSISTANT SECRETARIES- The following provisions of law are repealed:

      (1) Section 2 of Reorganization Plan No. 2 of 1953 (5 U.S.C. App; 7 U.S.C. 2201 note).

      (2) Section 2 of the Act entitled ‘An Act to enlarge the powers and duties of the Department of Agriculture and to create an Executive Department to be known as the Department of Agriculture.’, approved February 9, 1889 (7 U.S.C. 2212).

      (3) The first paragraph designated ‘OFFICE OF THE SECRETARY:’ under the heading ‘DEPARTMENT OF AGRICULTURE’ of the Act entitled ‘An Act making appropriations for the Department of Agriculture for the fiscal year ending June thirtieth, nineteen hundred and seven.’, approved June 30, 1906 (34 Stat. 670; 7 U.S.C. 2212).

      (4) Section 604(a) of the Rural Development Act of 1972 (7 U.S.C. 2212a).

      (5) Section 2 of Public Law 94-561 (7 U.S.C. 2212b).

      (6) Section 8(a) of Public Law 97-325 (7 U.S.C. 2212c).

      (7) Section 1413(d) of the National Agricultural Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3128(d)).

SEC. 219. PAY INCREASES PROHIBITED.

    The compensation of any officer or employee of the Department on the date of the enactment of this Act shall not be increased as a result of the enactment of this title.

Subtitle B--Farm and Foreign Agricultural Services

SEC. 225. UNDER SECRETARY OF AGRICULTURE FOR FARM AND FOREIGN AGRICULTURAL SERVICES.

    (a) AUTHORIZATION- The Secretary is authorized to establish in the Department the position of Under Secretary of Agriculture for Farm and Foreign Agricultural Services.

    (b) CONFIRMATION REQUIRED- If the Secretary establishes the position of Under Secretary of Agriculture for Farm and Foreign Agricultural Services authorized under subsection (a), the Under Secretary shall be appointed by the President, by and with the advice and consent of the Senate.

    (c) FUNCTIONS OF UNDER SECRETARY-

      (1) PRINCIPAL FUNCTIONS- Upon establishment, the Secretary shall delegate to the Under Secretary of Agriculture for Farm and Foreign Agricultural Services those functions under the jurisdiction of the Department that are related to farm and foreign agricultural services.

      (2) ADDITIONAL FUNCTIONS- The Under Secretary of Agriculture for Farm and Foreign Agricultural Services shall perform such other functions as may be required by law or prescribed by the Secretary.

    (d) SUCCESSION- Any official who is serving as Under Secretary of Agriculture for International Affairs and Commodity Programs on the date of the enactment of this Act and who was appointed by the President, by and with the advice and consent of the Senate, shall not be required to be reappointed under subsection (b) to the successor position authorized under subsection (a) if the Secretary establishes the position, and the official occupies the new position, within 180 days after the date of the enactment of this Act (or such later date set by the Secretary if litigation delays rapid succession).

    (e) CONFORMING AMENDMENTS-

      (1) EXISTING POSITION- Section 501 of the Agricultural Trade Act of 1978 (7 U.S.C. 5691), relating to the Under Secretary of Agriculture for International Affairs and Commodity Programs, is repealed.

      (2) EXECUTIVE SCHEDULE- Section 5314 of title 5, United States Code, is amended by striking ‘Under Secretary of Agriculture for International Affairs and Commodity Programs.’ and inserting ‘Under Secretary of Agriculture for Farm and Foreign Agricultural Services.’.

SEC. 226. CONSOLIDATED FARM SERVICE AGENCY.

    (a) ESTABLISHMENT- The Secretary is authorized to establish and maintain in the Department a Consolidated Farm Service Agency.

    (b) FUNCTIONS OF CONSOLIDATED FARM SERVICE AGENCY- If the Secretary establishes the Consolidated Farm Service Agency under subsection (a), the Secretary is authorized to assign to the Agency jurisdiction over the following functions:

      (1) Agricultural price and income support programs, production adjustment programs, and related programs.

      (2) General supervision of the Federal Crop Insurance Corporation.

      (3) Agricultural credit programs assigned before the date of the enactment of this Act by law to the Farmers Home Administration (including farm ownership and operating, emergency, and disaster loan programs) and other lending programs for agricultural producers and others engaged in the production of agricultural commodities.

      (4) Subchapter B of chapter 1 of subtitle D of title XII of the Food Security Act of 1985 (16 U.S.C. 3831-3836) and the agricultural conservation program under the Soil Conservation and Domestic Allotment Act (16 U.S.C. 590g et seq.).

      (5) Such other functions as the Secretary considers appropriate, except for those programs assigned by the Secretary to the Natural Resources Conservation Service or another agency of the Department under section 246(b).

    (c) SPECIAL CONCURRENCE REQUIREMENTS FOR CERTAIN FUNCTIONS- In carrying out the programs specified in subsection (b)(4), the Secretary shall--

      (1) acting on the recommendations of the Consolidated Farm Service Agency, with the concurrence of the Natural Resources Conservation Service, issue regulations to carry out such programs;

      (2) ensure that the Consolidated Farm Service Agency, in establishing policies, priorities, and guidelines for such programs, does so with the concurrence of the Natural Resources Conservation Service at national, State, and local levels;

      (3) ensure that, in reaching such concurrence at the local level, the Natural Resources Conservation Service works in cooperation with Soil and Water Conservation Districts or similar organizations established under State law;

      (4) ensure that officials of county and area committees established under section 8(b)(5) of the Soil Conservation and Domestic Allotment Act (16 U.S.C. 590h(b)(5)) meet annually with officials of such Districts or similar organizations to consider local conservation priorities and guidelines; and

      (5) take steps to ensure that the concurrence process does not interfere with the effective delivery of such programs.

    (d) JURISDICTION OVER CONSERVATION PROGRAM APPEALS-

      (1) IN GENERAL- Until such time as an adverse decision described in this paragraph is referred to the National Appeals Division for consideration, the Consolidated Farm Service Agency shall have initial jurisdiction over any administrative appeal resulting from an adverse decision made under title XII of the Food Security Act of 1985 (16 U.S.C. 3801 et seq.), including an adverse decision involving technical determinations made by the Natural Resources Conservation Service.

      (2) TREATMENT OF TECHNICAL DETERMINATION- With respect to administrative appeals involving a technical determination made by the Natural Resources Conservation Service, the Consolidated Farm Service Agency, by rule with the concurrence of the Natural Resources Conservation Service, shall establish procedures for obtaining review by the Natural Resources Conservation Service of the technical determinations involved. Such rules shall ensure that technical criteria established by the Natural Resources Conservation Service shall be used by the Consolidated Farm Service Agency as the basis for any decisions regarding technical determinations. If no review is requested, the technical determination of the Natural Resources Conservation Service shall be the technical basis for any decision rendered by a county or area committee established under section 8(b)(5) of the Soil Conservation and Domestic Allotment Act (16 U.S.C. 590h(b)(5)). If the committee requests a review by the Natural Resources Conservation Service of a wetlands determination of the Service, the Consolidated Farm Service Agency shall consult with other Federal agencies whenever required by law or under a memorandum of agreement in existence on the date of the enactment of this Act.

      (3) REINSTATEMENT OF PROGRAM BENEFITS- Rules issued to carry out this subsection shall provide for the prompt reinstatement of benefits to a producer who is determined in an administrative appeal to meet the requirements of title XII of the Food Security Act of 1985 applicable to the producer.

    (e) USE OF FEDERAL AND NON-FEDERAL EMPLOYEES-

      (1) USE AUTHORIZED- In the implementation of programs and activities assigned to the Consolidated Farm Service Agency, the Secretary may use interchangeably in local offices of the Agency both Federal employees of the Department and non-Federal employees of county and area committees established under section 8(b)(5) of the Soil Conservation and Domestic Allotment Act (16 U.S.C. 590h(b)(5)).

      (2) EXCEPTION- Notwithstanding paragraph (1), no personnel action (as defined in section 2302(a)(2)(A) of title 5, United States Code) may be taken with respect to a Federal employee unless such action is taken by another Federal employee.

    (f) COLLOCATION- To the maximum extent practicable, the Secretary shall collocate county offices of the Consolidated Farm Service Agency with county offices of the Natural Resources Conservation Service in order to--

      (1) maximize savings from shared equipment, office space, and administrative support;

      (2) simplify paperwork and regulatory requirements;

      (3) provide improved services to agricultural producers and landowners affected by programs administered by the Agency and the Service; and

      (4) achieve computer compatibility between the Agency and the Service to maximize efficiency and savings.

    (g) SAVINGS PROVISION- For purposes of subsections (c) through (f) of this section:

      (1) A reference to the ‘Consolidated Farm Service Agency’ includes any other office, agency, or administrative unit of the Department assigned the functions authorized for the Consolidated Farm Service Agency under this section.

      (2) A reference to the ‘Natural Resources Conservation Service’ includes any other office, agency, or administrative unit of the Department assigned the functions authorized for the Natural Resources Conservation Service under section 246(b).

    (h) CONFORMING AMENDMENT- Section 331(a) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1981(a)) is amended by striking ‘assets to the Farmers Home Administration’ and all that follows through the period at the end of the subsection and inserting ‘assets to such officers or agencies of the Department of Agriculture as the Secretary considers appropriate.’.

SEC. 227. STATE, COUNTY, AND AREA COMMITTEES.

    (a) COMMITTEES UNDER THE SOIL CONSERVATION AND DOMESTIC ALLOTMENT ACT- Section 8(b) of the Soil Conservation and Domestic Allotment Act (16 U.S.C. 590h(b)) is amended--

      (1) by inserting ‘(1)’ after ‘(b)’;

      (2) by designating the second through eighth undesignated paragraphs as paragraphs (2) through (8), respectively; and

      (3) by striking paragraph (5) (as so designated) and inserting the following new paragraph:

    ‘(5) STATE, COUNTY, AND AREA COMMITTEES-

      ‘(A) APPOINTMENT OF STATE COMMITTEES- The Secretary shall appoint in each State a State committee composed of not fewer than 3 nor more than 5 members who are fairly representative of the farmers in the State. The members of a State committee shall serve at the pleasure of the Secretary for such term as the Secretary may establish.

      ‘(B) ESTABLISHMENT OF COUNTY, AREA, OR LOCAL COMMITTEES- (i) In each county or area in which activities are carried out under this section, the Secretary shall establish a county or area committee.

      ‘(ii) Any such committee shall consist of not fewer than 3 nor more than 5 members who are fairly representative of the agricultural producers in the county or area and who shall be elected by the agricultural producers in such county or area under such procedures as the Secretary may prescribe.

      ‘(iii) The Secretary may designate local administrative areas within the county or larger area covered by a committee established under clause (i). Only agricultural producers within a local administrative area who participate or cooperate in programs administered within their area shall be eligible for nomination and election to the local committee for that area, under such regulations as the Secretary may prescribe.

      ‘(iv) The Secretary shall solicit and accept nominations from organizations representing the interests of socially disadvantaged groups (as defined in section 355(e)(1) of the Consolidated Farm and Rural Development Act (7 U.S.C. 2003(e)(1)).

      ‘(v) Members of each county, area, or local committee shall serve for terms not to exceed 3 years.

      ‘(C) TERMINATION OR COMBINATION OF COMMITTEES- The Secretary may not terminate a county or area committee or combine or consolidate two or more county or area committees unless--

        ‘(i) the Secretary first notifies the committee or committees involved of the proposed action; and

        ‘(ii) the State committee of the State in which the affected counties are located approves of such action in a vote taken after the end of the 60-day period beginning on the date the notification is received.

      ‘(D) USE OF COMMITTEES- The Secretary shall use the services of such committees in carrying out programs under this section and the agricultural credit programs under the Consolidated Farm and Rural Development Act (7 U.S.C. 1921 et seq.) and in considering administrative appeals as provided by section 226(d) of the Department of Agriculture Reorganization Act of 1994. The Secretary may use the services of such committees in carrying out programs under other authorities administered by the Secretary.

      ‘(E) REGULATIONS- The Secretary shall issue such regulations as the Secretary considers necessary relating to the selection and exercise of the functions of the respective committees, and to the administration through such committees of the programs described in subparagraph (D). Pursuant to such regulations, each county and area committee shall select an executive director for the area or county. Such selection shall be made in the same manner as provided for the selection of the county executive director under section 7.21(b)(2) of title 7, Code of Federal Regulations, as in effect on January 1, 1994. Regulations governing payments or grants under this subsection shall be as simple and direct as possible, and, whenever practicable, they shall be classified on the following two bases:

        ‘(i) Soil-depleting practices.

        ‘(ii) Soil-building practices.

      ‘(F) MANDATORY DUTIES OF SECRETARY- In carrying out this section, the Secretary shall--

        ‘(i) insofar as practicable, protect the interests of tenants and sharecroppers;

        ‘(ii) accord such encouragement to producer-owned and producer-controlled cooperative associations as will be in harmony with the policy toward cooperative associations set forth in Federal laws and as will tend to promote efficient methods of marketing and distribution;

        ‘(iii) in every practicable manner, protect the interests of small producers; and

        ‘(iv) in every practical way, encourage and provide for soil-conserving and soil-rebuilding practices.

      ‘(G) DISCRETIONARY AUTHORITIES OF SECRETARY- In carrying out this section, the Secretary may use other approved agencies.

      ‘(H) LIMITATIONS- In carrying out this section, the Secretary shall not have the authority to acquire any land or any right or interest in land.’.

    (b) ELIMINATION OF FMHA COUNTY COMMITTEES- The Consolidated Farm and Rural Development Act (7 U.S.C. 1921 et seq.) is amended--

      (1) by striking section 332 (7 U.S.C. 1982); and

      (2) in section 333 (7 U.S.C. 1983)--

        (A) by striking paragraph (2); and

        (B) redesignating paragraphs (3), (4), and (5) as paragraphs (2), (3), and (4), respectively.

Subtitle C--Rural Economic and Community Development

SEC. 231. UNDER SECRETARY OF AGRICULTURE FOR RURAL ECONOMIC AND COMMUNITY DEVELOPMENT.

    (a) AUTHORIZATION- The Secretary is authorized to establish in the Department the position of Under Secretary of Agriculture for Rural Economic and Community Development.

    (b) CONFIRMATION REQUIRED- If the Secretary establishes the position of Under Secretary of Agriculture for Rural Economic and Community Development authorized under subsection (a), the Under Secretary shall be appointed by the President, by and with the advice and consent of the Senate.

    (c) FUNCTIONS OF UNDER SECRETARY-

      (1) PRINCIPAL FUNCTIONS- Upon establishment, the Secretary shall delegate to the Under Secretary of Agriculture for Rural Economic and Community Development those functions under the jurisdiction of the Department that are related to rural economic and community development.

      (2) ADDITIONAL FUNCTIONS- The Under Secretary of Agriculture for Rural Economic and Community Development shall perform such other functions as may be required by law or prescribed by the Secretary.

    (d) SUCCESSION- Any official who is serving as Under Secretary of Agriculture for Small Community and Rural Development on the date of the enactment of this Act and who was appointed by the President, by and with the advice and consent of the Senate, shall not be required to be reappointed under subsection (b) to the successor position authorized under subsection (a) if the Secretary establishes the position, and the official occupies the new position, within 180 days after the date of the enactment of this Act (or such later date set by the Secretary if litigation delays rapid succession).

    (e) LOAN APPROVAL AUTHORITY- Approval authority for loans and loan guarantees in connection with the electric and telephone loan and loan guarantee programs authorized by the Rural Electrification Act of 1936 (7 U.S.C. 901 et seq.) shall not be transferred to, or conditioned on review of, a State director or other employee whose primary duty is not the review and approval of such loans or the provision of assistance to such borrowers.

    (f) CONFORMING AMENDMENTS-

      (1) EXISTING POSITION- Section 3 of the Rural Development Policy Act of 1980 (7 U.S.C. 2211b) is amended by striking subsection (a).

      (2) EXECUTIVE SCHEDULE- Section 5314 of title 5, United States Code, is amended by striking ‘Under Secretary of Agriculture for Small Community and Rural Development.’ and inserting ‘Under Secretary of Agriculture for Rural Economic and Community Development.’.

      (3) REPEAL OF RURAL DEVELOPMENT ADMINISTRATION- Section 364 of the Consolidated Farm and Rural Development Act (7 U.S.C. 2006f) is repealed.

SEC. 232. RURAL UTILITIES SERVICE.

    (a) ESTABLISHMENT REQUIRED- The Secretary shall establish and maintain within the Department the Rural Utilities Service and assign to the Service such functions as the Secretary considers appropriate.

    (b) ADMINISTRATOR-

      (1) APPOINTMENT- The Rural Utilities Service shall be headed by an Administrator who shall be appointed by the President, by and with the advice and consent of the Senate.

      (2) SUCCESSION- Any official who is serving as Administrator of the Rural Electrification Administration on the date of the enactment of this Act and who was appointed by the President, by and with the advice and consent of the Senate--

        (A) may be considered to be serving in the successor position established under paragraph (1); and

        (B) shall not be required to be reappointed to that position by reason of the enactment of this Act.

      (3) EXECUTIVE SCHEDULE- Section 5315 of title 5, United States Code, is amended by adding at the end the following:

      ‘Administrator, Rural Utilities Service, Department of Agriculture.’.

    (c) FUNCTIONS- The Secretary shall carry out through the Rural Utilities Service the following functions that are under the jurisdiction of the Department:

      (1) Electric and telephone loan programs and water and waste facility activities authorized by law, including--

        (A) the Rural Electrification Act of 1936 (7 U.S.C. 901 et seq.); and

        (B) section 2322 of the Food, Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 1926-1); and

      (2) Water and waste facility programs and activities authorized by law, including--

        (A) sections 306, 306A, 306B, and 306C, the provisions of sections 309 and 309A relating to assets, terms, and conditions of water and sewer programs, section 310B(b)(2), and the amendment made by section 342 of the Consolidated Farm and Rural Development Act (7 U.S.C. 1926, 1926a, 1926b, 1926c, 1929, 1929a, 1932(b)(2), and 1013a); and

        (B) section 2324 of the Food, Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 1926 note).

SEC. 233. RURAL HOUSING AND COMMUNITY DEVELOPMENT SERVICE.

    (a) ESTABLISHMENT AUTHORIZED- Notwithstanding any other provision of law, the Secretary is authorized to establish and maintain within the Department the Rural Housing and Community Development Service and to assign to the Service such functions as the Secretary considers appropriate.

    (b) FUNCTIONS- If the Secretary establishes the Rural Housing and Community Development Service under subsection (a), the Secretary is authorized to assign to the Service jurisdiction over the following:

      (1) Programs and activities under title V of the Housing Act of 1949 (42 U.S.C. 1471 et seq.).

      (2) Programs and activities authorized under section 310B(i) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1932(i)) and related provisions of law.

      (3) Programs and activities that relate to rural community lending programs, including programs authorized by sections 365 through 369 of the Consolidated Farm and Rural Development Act (7 U.S.C. 2008-2008d).

SEC. 234. RURAL BUSINESS AND COOPERATIVE DEVELOPMENT SERVICE.

    (a) ESTABLISHMENT AUTHORIZED- Notwithstanding any other provision of law, the Secretary is authorized to establish and maintain within the Department the Rural Business and Cooperative Development Service and to assign to the Service such functions as the Secretary considers appropriate.

    (b) FUNCTIONS- If the Secretary establishes the Rural Business and Cooperative Development Service under subsection (a), the Secretary is authorized to assign to the Service jurisdiction over the following:

      (1) Section 313 and title V of the Rural Electrification Act of 1936 (7 U.S.C. 940c and 950aa et seq.).

      (2) Subtitle G of title XVI of the Food, Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 5901 et seq.).

      (3) Sections 306(a)(1) and 310B of the Consolidated Farm and Rural Development Act (7 U.S.C. 1926(a)(1) and 1932).

      (4) Section 1323 of the Food Security Act of 1985 (Public Law 99-198; 7 U.S.C. 1932 note).

      (5) The Act of July 2, 1926 (44 Stat. 802, chapter 725; 7 U.S.C. 451 et seq.).

SEC. 235. CONFORMING AMENDMENTS REGARDING RURAL ELECTRIFICATION ADMINISTRATION.

    (a) AMENDMENTS TO RURAL ELECTRIFICATION ACT OF 1936- The Rural Electrification Act of 1936 (7 U.S.C. 901 et seq.) is amended--

      (1) by striking the first section (7 U.S.C. 901) and inserting the following:

‘SECTION 1. SHORT TITLE.

    ‘This Act may be cited as the ‘Rural Electrification Act of 1936’.’;

      (2) in section 2(a) (7 U.S.C. 902(a)), by striking ‘Administrator’ and inserting ‘Secretary of Agriculture’;

      (3) in section 3(a) (7 U.S.C. 903(a))--

        (A) by striking ‘Administrator, upon the request and approval of the Secretary of Agriculture,’ and inserting ‘Secretary’; and

        (B) by striking ‘Administrator appointed pursuant to the provisions of this Act or from the Administrator of the Rural Electrification Administration established by Executive Order Numbered 7037’ and inserting ‘Secretary’;

      (4) in section 8 (7 U.S.C. 908)--

        (A) by striking ‘Administrator authorized to be appointed by this Act’ and inserting ‘Secretary’; and

        (B) by striking ‘Rural Electrification Administration created by this Act’ and inserting ‘Secretary’;

      (5) by striking section 11A (7 U.S.C. 911a);

      (6) in section 13 (7 U.S.C. 913), by inserting before the period at the end the following: ‘; and the term ‘Secretary’ shall be deemed to mean the Secretary of Agriculture’;

      (7) in sections 206(b)(2), 306A(b), 311, and 405(b)(1)(A) (7 U.S.C. 927(b)(2), 936a(b), 940a, and 945(b)(1)(A)), by striking ‘Rural Electrification Administration’ each place it appears and inserting ‘Secretary’;

      (8) in sections 305(c)(2)(C)(ii)(II) and 306E(d) (7 U.S.C. 935(c)(2)(C)(ii)(II) and 936e(d)), by striking ‘ADMINISTRATOR’ and inserting ‘SECRETARY’;

      (9) in section 403(b) (7 U.S.C. 943(b)), by striking ‘Rural Electrification Administration or of any other agency of the Department of Agriculture,’ and inserting ‘Secretary,’;

      (10) in section 404 (7 U.S.C. 944), by striking ‘the Administrator of the Rural Electrification Administration’ and inserting ‘the Secretary shall designate an official of the Department of Agriculture who’;

      (11) in sections 406(c) and 410 (7 U.S.C. 946(c) and 950), by striking ‘Administrator of the Rural Electrification Administration’ each place it appears and inserting ‘Secretary’;

      (12) in the heading of section 501 (7 U.S.C. 950aa), by striking ‘of rea administrator’; and

      (13) except as otherwise provided in this subsection, by striking ‘Administrator’ each place it appears in such Act and inserting ‘Secretary’.

    (b) MISCELLANEOUS AMENDMENTS- (1) Section 236(a) of the Disaster Relief Act of 1970 (7 U.S.C. 912a) is amended by striking ‘Rural Electrification Administration’ and inserting ‘Secretary under the Rural Electrification Act of 1936 (7 U.S.C. 901 et seq.)’.

    (2) Section 505 of the Department of Agriculture Organic Act of 1944 (7 U.S.C. 915) is amended--

      (A) by striking ‘Rural Electrification Administration’ and inserting ‘Secretary of Agriculture’; and

      (B) by striking ‘its’ and inserting ‘the Secretary’s’.

    (3) Section 401 of the Rural Electrification Act of 1938 (7 U.S.C. 903 note) is amended in the second paragraph by striking ‘Administrator of the Rural Electrification Administration’ and inserting ‘Secretary of Agriculture’.

    (4) 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.), relating to Distance Learning and Medical Link Programs, is amended--

      (A) in section 2333--

        (i) by striking paragraph (1); and

        (ii) by redesignating paragraphs (2) through (11) as paragraphs (1) through (10), respectively;

      (B) in section 2334(h)(2), by striking ‘section 2333(3)(F)’ and inserting ‘section 2333(2)(F)’; and

      (C) by striking ‘Administrator’ each place it appears and inserting ‘Secretary’.

    (5) Section 306(a)(15) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1926(a)(15)) is amended--

      (A) by striking subparagraph (C); and

      (B) by redesignating subparagraph (D) as subparagraph (C).

    (6) Section 2322(d) of the Food, Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 1926-1(d)) is amended--

      (A) by striking paragraph (2); and

      (B) by redesignating paragraph (3) as paragraph (2).

Subtitle D--Food, Nutrition, and Consumer Services

SEC. 241. UNDER SECRETARY OF AGRICULTURE FOR FOOD, NUTRITION, AND CONSUMER SERVICES.

    (a) AUTHORIZATION- The Secretary is authorized to establish in the Department the position of Under Secretary of Agriculture for Food, Nutrition, and Consumer Services.

    (b) CONFIRMATION REQUIRED- If the Secretary establishes the position of Under Secretary of Agriculture for Food, Nutrition, and Consumer Services authorized under subsection (a), the Under Secretary shall be appointed by the President, by and with the advice and consent of the Senate.

    (c) FUNCTIONS OF UNDER SECRETARY-

      (1) PRINCIPAL FUNCTIONS- Upon establishment, the Secretary shall delegate to the Under Secretary of Agriculture for Food, Nutrition, and Consumer Services those functions under the jurisdiction of the Department that are related to food, nutrition, and consumer services (except as provided in section 261(b)(1)).

      (2) ADDITIONAL FUNCTIONS- The Under Secretary of Agriculture for Food, Nutrition, and Consumer Services shall perform such other functions as may be required by law or prescribed by the Secretary.

    (d) SUCCESSION- Any official who is serving as Assistant Secretary of Agriculture for Food and Consumer Services on the date of the enactment of this Act and who was appointed by the President, by and with the advice and consent of the Senate, shall not be required to be reappointed under subsection (b) to the successor position authorized under subsection (a) if the Secretary establishes the position, and the official occupies the new position, within 180 days after the date of the enactment of this Act (or such later date set by the Secretary if litigation delays rapid succession).

    (e) EXECUTIVE SCHEDULE- Section 5314 of title 5, United States Code, is amended by inserting after the item relating to the Under Secretary of Agriculture for Farm and Foreign Agricultural Services (as added by section 225(e)(2)) the following:

      ‘Under Secretary of Agriculture for Food, Nutrition, and Consumer Services.’.

Subtitle E--Natural Resources and Environment

SEC. 245. UNDER SECRETARY OF AGRICULTURE FOR NATURAL RESOURCES AND ENVIRONMENT.

    (a) AUTHORIZATION- The Secretary is authorized to establish in the Department the position of Under Secretary of Agriculture for Natural Resources and Environment.

    (b) CONFIRMATION REQUIRED- If the Secretary establishes the position of Under Secretary of Agriculture for Natural Resources and Environment authorized under subsection (a), the Under Secretary shall be appointed by the President, by and with the advice and consent of the Senate.

    (c) FUNCTIONS OF UNDER SECRETARY-

      (1) PRINCIPAL FUNCTIONS- Upon establishment, the Secretary shall delegate to the Under Secretary of Agriculture for Natural Resources and Environment those functions under the jurisdiction of the Department that are related to natural resources and environment (except to the extent those functions are delegated under section 226).

      (2) ADDITIONAL FUNCTIONS- The Under Secretary of Agriculture for Natural Resources and Environment shall perform such other functions and duties as may be required by law or prescribed by the Secretary.

    (d) SUCCESSION- Any official who is serving as Assistant Secretary of Agriculture for Natural Resources and Environment on the date of the enactment of this Act and who was appointed by the President, by and with the advice and consent of the Senate, shall not be required to be reappointed under subsection (b) to the successor position authorized under subsection (a) if the Secretary establishes the position, and the official occupies the new position, within 180 days after the date of the enactment of this Act (or such later date set by the Secretary if litigation delays rapid succession).

    (e) EXECUTIVE SCHEDULE- Section 5314 of title 5, United States Code, is amended by inserting after the item relating to the Under Secretary of Agriculture for Food, Nutrition, and Consumer Services (as added by section 241(e)) the following:

      ‘Under Secretary of Agriculture for Natural Resources and Environment.’.

SEC. 246. NATURAL RESOURCES CONSERVATION SERVICE.

    (a) ESTABLISHMENT- The Secretary is authorized to establish and maintain within the Department a Natural Resources Conservation Service.

    (b) FUNCTIONS- If the Secretary establishes the Natural Resources Conservation Service under subsection (a), the Secretary is authorized to assign to the Service jurisdiction over the following:

      (1) The rural environmental conservation program under title X of the Agricultural Act of 1970 (16 U.S.C. 1501 et seq.).

      (2) The Great Plains Conservation Program under section 16(b) of the Soil Conservation and Domestic Allotment Act (16 U.S.C. 590p(b)).

      (3) The Water Bank Act (16 U.S.C. 1301 et seq.).

      (4) The forestry incentive program under section 4 of the Cooperative Forestry Assistance Act of 1978 (16 U.S.C. 2103).

      (5) Title XII of the Food Security Act of 1985 (16 U.S.C. 3801 et seq.), except subchapter B of chapter 1 of subtitle D of such title.

      (6) Salinity control program under section 202(c) of the Colorado River Basin Salinity Control Act (43 U.S.C. 1592(c)).

      (7) The Farms for the Future Act of 1990 (7 U.S.C. 4201 note).

      (8) Such other functions as the Secretary considers appropriate, except functions under subchapter B of chapter 1 of subtitle D of title XII of the Food Security Act of 1985 (16 U.S.C. 3831-3836) and the agricultural conservation program under the Soil Conservation and Domestic Allotment Act (16 U.S.C. 590g et seq.).

    (c) SPECIAL CONCURRENCE REQUIREMENTS FOR CERTAIN FUNCTIONS- In carrying out the programs specified in paragraphs (2), (3), (4), and (6) of subsection (b) and the program under subchapter C of chapter 1 of subtitle D of title XII of the Food Security Act of 1985 (16 U.S.C. 3837-3837f), the Secretary shall--

      (1) acting on the recommendations of the Natural Resources Conservation Service, with the concurrence of the Consolidated Farm Service Agency, issue regulations to carry out such programs;

      (2) ensure that the Natural Resources Conservation Service, in establishing policies, priorities, and guidelines for each such program, does so with the concurrence of the Consolidated Farm Service Agency at national, State, and local levels;

      (3) ensure that, in reaching such concurrence at the local level, the Natural Resources Conservation Service works in cooperation with Soil and Water Conservation Districts or similar organizations established under State law;

      (4) ensure that officials of county and area committees established under section 8(b)(5) of the Soil Conservation and Domestic Allotment Act (16 U.S.C. 590h(b)(5)) meet annually with officials of such Districts or similar organizations to consider local conservation priorities and guidelines; and

      (5) take steps to ensure that the concurrence process does not interfere with the effective delivery of such programs.

    (d) USE OF FEDERAL AND NON-FEDERAL EMPLOYEES-

      (1) USE AUTHORIZED- In the implementation of functions assigned to the Natural Resources Conservation Service, the Secretary may use interchangeably in local offices of the Service both Federal employees of the Department and non-Federal employees of county and area committees established under section 8(b)(5) of the Soil Conservation and Domestic Allotment Act (16 U.S.C. 590h(b)(5)).

      (2) EXCEPTION- Notwithstanding paragraph (1), no personnel action (as defined in section 2302(a)(2)(A) of title 5, United States Code) may be taken with respect to a Federal employee unless such action is taken by another Federal employee.

    (e) SAVINGS PROVISION- For purposes of subsections (c) and (d) of this section:

      (1) A reference to the ‘Natural Resources Conservation Service’ includes any other office, agency, or administrative unit of the Department assigned the functions authorized for the Natural Resources Conservation Service under this section.

      (2) A reference to the ‘Consolidated Farm Service Agency’ includes any other office, agency, or administrative unit of the Department assigned the functions authorized for the Consolidated Farm Service Agency under section 226.

    (f) CONFORMING AMENDMENTS-

      (1) SOIL CONSERVATION SERVICE- Section 5 of the Soil Conservation and Domestic Allotment Act (16 U.S.C. 590e) is repealed.

      (2) SOIL AND WATER RESOURCES CONSERVATION- The Soil and Water Resources Conservation Act of 1977 (16 U.S.C. 2001) is amended--

        (A) in section 2(2) (16 U.S.C. 2001(2))--

          (i) by striking ‘created the Soil Conservation Service’; and

          (ii) by striking ‘Department of Agriculture which’ and inserting ‘, has ensured that the Department of Agriculture’;

        (B) in section 3(2) (16 U.S.C. 2002(2)), by striking ‘through the Soil Conservation Service’; and

        (C) in section 6(a) (16 U.S.C. 2005(a)), by striking ‘Soil Conservation Service’ and inserting ‘Secretary’.

      (3) STATE TECHNICAL COMMITTEES- Section 1262 of the Food Security Act of 1985 (16 U.S.C. 3862) is amended by adding at the end the following new subsection:

    ‘(e) FACA REQUIREMENTS- The committees established under section 1261 shall be exempt from the Federal Advisory Committee Act (5 U.S.C. App.).’.

SEC. 247. REORGANIZATION OF FOREST SERVICE.

    (a) REQUIRED ELEMENTS OF REORGANIZATION PROPOSALS- Reorganization proposals that are developed by the Secretary to carry out the designation by the President of the Forest Service as a Reinvention Lab pursuant to the National Performance Review, dated September 1993, shall include proposals for--

      (1) reorganizing the Service in a manner that is consistent with the principles of interdisciplinary planning;

      (2) redefining and consolidating the mission and roles of, and research conducted by, employees of the Service in connection with the National Forest System and State and private forestry to facilitate interdisciplinary planning and to eliminate functionalism;

      (3) reforming the budget structure of the Service to support interdisciplinary planning, including reducing the number of budget line items;

      (4) defining new measures of accountability so that Congress may meet the constitutional obligation of Congress to oversee the Service;

      (5) achieving structural and organizational consolidations;

      (6) to the extent practicable, sharing office space, equipment, vehicles, and electronic systems with other administrative units of the Department and other Federal field offices, including proposals for using an on-line system by all administrative units of the Department to maximize administrative efficiency; and

      (7) reorganizing the Service in a manner that will result in a larger percentage of employees of the Service being retained at organizational levels below regional offices, research stations, and the area office of the Service.

    (b) REPORT- Not later than March 31, 1995, the Secretary shall submit a report to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate that describes actions taken to carry out subsection (a), identifies any disparities in regional funding patterns, and contains the rationale behind the disparities.

Subtitle F--Research, Education, and Economics

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

    (a) AUTHORIZATION- The Secretary is authorized to establish in the Department the position of Under Secretary of Agriculture for Research, Education, and Economics.

    (b) CONFIRMATION REQUIRED- If the Secretary establishes the position of Under Secretary of Agriculture for Research, Education, and Economics authorized under subsection (a), the Under Secretary shall be appointed by the President, by and with the advice and consent of the Senate.

    (c) FUNCTIONS OF UNDER SECRETARY-

      (1) PRINCIPAL FUNCTIONS- Upon establishment, the Secretary shall delegate to the Under Secretary of Agriculture for Research, Education, and Economics those functions and duties under the jurisdiction of the Department that are related to research, education, and economics.

      (2) ADDITIONAL FUNCTIONS- The Under Secretary of Agriculture for Research, Education, and Economics shall perform such other functions and duties as may be required by law or prescribed by the Secretary.

    (d) COOPERATIVE STATE RESEARCH, EDUCATION, AND EXTENSION SERVICE-

      (1) ESTABLISHMENT- There is established in the Department a Cooperative State Research, Education, and Extension Service.

      (2) FUNCTIONS- The Secretary shall delegate to the Cooperative State Research, Education, and Extension Service functions related to cooperative State research programs and cooperative extension and education programs that are under the jurisdiction of the Department.

      (3) OFFICER-IN-CHARGE- If the Secretary establishes the position of Under Secretary of Agriculture for Research, Education, and Economics, the officer in charge of the Cooperative State Research, Education, and Extension Service shall report directly to the Under Secretary.

    (e) EXECUTIVE SCHEDULE- Section 5314 of title 5, United States Code, is amended by inserting after the item relating to the Under Secretary of Agriculture for Natural Resources and Environment (as added by section 245(e)) the following:

      ‘Under Secretary of Agriculture for Research, Education, and Economics.’.

SEC. 252. PROGRAM STAFF.

    In making the personnel reductions required under section 213, the Secretary shall reduce the number of Federal research and education personnel of the Department by a percentage equal to at least the percentage of overall Department personnel reductions. The Secretary shall achieve such reduction in research and education personnel in a manner that minimizes duplication and maximizes coordination between Federal and State research and extension activities.

Subtitle G--Food Safety

SEC. 261. UNDER SECRETARY OF AGRICULTURE FOR FOOD SAFETY.

    (a) ESTABLISHMENT- There is established in the Department of Agriculture the position of Under Secretary of Agriculture for Food Safety. The Under Secretary shall be appointed by the President, by and with the advice and consent of the Senate, from among individuals with specialized training or significant experience in food safety or public health programs.

    (b) FUNCTIONS OF UNDER SECRETARY-

      (1) PRINCIPAL FUNCTIONS- The Secretary shall delegate to the Under Secretary of Agriculture for Food Safety those functions and duties under the jurisdiction of the Department that are primarily related to food safety.

      (2) ADDITIONAL FUNCTIONS- The Under Secretary of Agriculture for Food Safety shall perform such other functions and duties as may be required by law or prescribed by the Secretary.

    (c) EXECUTIVE SCHEDULE- Section 5314 of title 5, United States Code, is amended by inserting after the item relating to the Under Secretary of Agriculture for Research, Education, and Economics (as added by section 251(e)) the following:

      ‘Under Secretary of Agriculture for Food Safety.’.

    (d) TECHNICAL AND SCIENTIFIC REVIEW GROUPS- The Secretary, acting through the Under Secretary for Research, Education, and Economics, may, without regard to the provisions of title 5, United States Code, governing appointment in the competitive service, and without regard to the provisions of chapter 51 and subchapter III of chapter 53 of title 5, United States Code, relating to classification and General Schedule pay rates--

      (1) establish such technical and scientific review groups as are needed to carry out the functions of the Department; and

      (2) appoint and pay the members of the groups, except that officers and employees of the United States shall not receive additional compensation for service as a member of a group.

SEC. 262. CONDITIONS FOR IMPLEMENTATION OF ALTERATIONS IN THE LEVEL OF ADDITIVES ALLOWED IN ANIMAL DIETS.

    (a) CONDITIONS- The Food and Drug Administration shall not implement or enforce the final rule described in subsection (b) to alter the level of selenium allowed to be used as a supplement in animal diets unless the Commissioner of the Food and Drug Administration makes a determination that--

      (1) selenium additives are not essential, at levels authorized in the absence of such final rule, to maintain animal nutrition and protect animal health;

      (2) selenium at such levels is not safe to the animals consuming the additive;

      (3) selenium at such levels is not safe to individuals consuming edible portions of animals that receive the additive;

      (4) selenium at such levels does not achieve its intended effect of promoting normal growth and reproduction of livestock and poultry; and

      (5) the manufacture and use of selenium at such levels cannot reasonably be controlled by adherence to current good manufacturing practice requirements.

    (b) FINAL RULE DESCRIBED- The final rule referred to in subsection (a) is the final rule issued by the Food and Drug Administration and published in the Federal Register on September 13, 1993 (58 Fed. Reg. 47962), in which the Administration stayed 1987 amendments to the selenium food additive regulations, and any modification of such rule issued after the date of the enactment of this Act.

Subtitle H--National Appeals Division

SEC. 271. DEFINITIONS.

    For purposes of this subtitle:

      (1) ADVERSE DECISION- The term ‘adverse decision’ means an administrative decision made by an officer, employee, or committee of an agency that is adverse to a participant. The term includes a denial of equitable relief by an agency or the failure of an agency to issue a decision or otherwise act on the request or right of the participant. The term does not include a decision over which the Board of Contract Appeals has jurisdiction.

      (2) AGENCY- The term ‘agency’ means any agency of the Department designated by the Secretary or a successor agency of the Department, except that the term shall include the following (and any successor to the following):

        (A) The Consolidated Farm Service Agency (or other office, agency, or administrative unit of the Department assigned the functions authorized for the Consolidated Farm Service Agency under section 226).

        (B) The Commodity Credit Corporation, with respect to domestic programs.

        (C) The Farmers Home Administration.

        (D) The Federal Crop Insurance Corporation.

        (E) The Rural Development Administration.

        (F) The Natural Resources Conservation Service (or other office, agency, or administrative unit of the Department assigned the functions authorized for the Natural Resources Conservation Service under section 246(b)).

        (G) A State, county, or area committee established under section 8(b)(5) of the Soil Conservation and Domestic Allotment Act (16 U.S.C. 590h(b)(5)).

      (3) APPELLANT- The term ‘appellant’ means a participant who appeals an adverse decision in accordance with this subtitle.

      (4) CASE RECORD- The term ‘case record’ means all the materials maintained by the Secretary related to an adverse decision.

      (5) DIRECTOR- The term ‘Director’ means the Director of the Division.

      (6) DIVISION- The term ‘Division’ means the National Appeals Division established by this title.

      (7) HEARING OFFICER- The term ‘hearing officer’ means an individual employed by the Division who hears and determines appeals of adverse decisions by any agency.

      (8) IMPLEMENT- The term ‘implement’ refers to those actions necessary to effectuate fully and promptly a final determination of the Division not later than 30 calendar days after the effective date of the final determination.

      (9) PARTICIPANT- The term ‘participant’ shall have the meaning given that term by the Secretary by regulation.

SEC. 272. NATIONAL APPEALS DIVISION AND DIRECTOR.

    (a) ESTABLISHMENT OF DIVISION- The Secretary shall establish and maintain an independent National Appeals Division within the Department to carry out this subtitle.

    (b) DIRECTOR-

      (1) APPOINTMENT- The Division shall be headed by a Director, appointed by the Secretary from among persons who have substantial experience in practicing administrative law. In considering applicants for the position of Director, the Secretary shall consider persons currently employed outside Government as well as Government employees.

      (2) TERM AND REMOVAL- The Director shall serve for a 6-year term of office, and shall be eligible for reappointment. The Director shall not be subject to removal during the term of office, except for cause established in accordance with law.

      (3) POSITION CLASSIFICATION- The position of the Director may not be a position in the excepted service or filled by a noncareer appointee.

    (c) DIRECTION, CONTROL, AND SUPPORT- The Director shall be free from the direction and control of any person other than the Secretary. The Division shall not receive administrative support (except on a reimbursable basis) from any agency other than the Office of the Secretary. The Secretary may not delegate to any other officer or employee of the Department, other than the Director, the authority of the Secretary with respect to the Division.

    (d) DETERMINATION OF APPEALABILITY OF AGENCY DECISIONS- If an officer, employee, or committee of an agency determines that a decision is not appealable and a participant appeals the decision to the Director, the Director shall determine whether the decision is adverse to the individual participant and thus appealable or is a matter of general applicability and thus not subject to appeal. The determination of the Director as to whether a decision is appealable shall be administratively final.

    (e) DIVISION PERSONNEL- The Director shall appoint such hearing officers and other employees as are necessary for the administration of the Division. A hearing officer or other employee of the Division shall have no duties other than those that are necessary to carry out this subtitle.

SEC. 273. TRANSFER OF FUNCTIONS.

    There are transferred to the Division all functions exercised and all administrative appeals pending before the effective date of this subtitle (including all related functions of any officer or employee) of or relating to--

      (1) the National Appeals Division established by section 426(c) of the Agricultural Act of 1949 (7 U.S.C. 1433e(c)) (as in effect on the day before the date of the enactment of this Act);

      (2) the National Appeals Division established by subsections (d) through (g) of section 333B of the Consolidated Farm and Rural Development Act (7 U.S.C. 1983b) (as in effect on the day before the date of the enactment of this Act);

      (3) appeals of decisions made by the Federal Crop Insurance Corporation; and

      (4) appeals of decisions made by the Soil Conservation Service (as in effect on the day before the date of the enactment of this Act).

SEC. 274. NOTICE AND OPPORTUNITY FOR HEARING.

    Not later than 10 working days after an adverse decision is made that affects the participant, the Secretary shall provide the participant with written notice of such adverse decision and the rights available to the participant under this subtitle or other law for the review of such adverse decision.

SEC. 275. INFORMAL HEARINGS.

    If an officer, employee, or committee of an agency makes an adverse decision, the agency shall hold, at the request of the participant, an informal hearing on the decision. With respect to programs carried out through the Consolidated Farm Service Agency (or other office, agency, or administrative unit of the Department assigned to carry out the programs authorized for the Consolidated Farm Service Agency under section 226), the Secretary shall maintain the informal appeals process applicable to such programs, as in effect on the date of the enactment of the subtitle. If a mediation program is available under title V of the Agricultural Credit Act of 1987 (7 U.S.C. 5101 et seq.) as a part of the informal hearing process, the participant shall be offered the right to choose such mediation.

SEC. 276. RIGHT OF PARTICIPANTS TO DIVISION HEARING.

    (a) APPEAL TO DIVISION FOR HEARING- Subject to subsection (b), a participant shall have the right to appeal an adverse decision to the Division for an evidentiary hearing by a hearing officer consistent with section 277.

    (b) TIME FOR APPEAL- To be entitled to a hearing under section 277, a participant shall request the hearing not later than 30 days after the date on which the participant first received notice of the adverse decision.

SEC. 277. DIVISION HEARINGS.

    (a) GENERAL POWERS OF DIRECTOR AND HEARING OFFICERS-

      (1) ACCESS TO CASE RECORD- The Director and hearing officer shall have access to the case record of any adverse decision appealed to the Division for a hearing.

      (2) ADMINISTRATIVE PROCEDURES- The Director and hearing officer shall have the authority to require the attendance of witnesses, and the production of evidence, by subpoena and to administer oaths and affirmations. Except to the extent required for the disposition of ex parte matters as authorized by law--

        (A) an interested person outside the Division shall not make or knowingly cause to be made to the Director or a hearing officer who is or may reasonably be expected to be involved in the evidentiary hearing or review of an adverse decision, an ex parte communication (as defined in section 551(14) of title 5, United States Code) relevant to the merits of the proceeding;

        (B) the Director and such hearing officer shall not make or knowingly cause to be made to any interested person outside the Division an ex parte communication relevant to the merits of the proceeding.

    (b) TIME FOR HEARING- Upon a timely request for a hearing under section 276(b), an appellant shall have the right to have a hearing by the Division on the adverse decision within 45 days after the date of the receipt of the request for the hearing.

    (c) LOCATION AND ELEMENTS OF HEARING-

      (1) LOCATION- A hearing on an adverse decision shall be held in the State of residence of the appellant or at a location that is otherwise convenient to the appellant and the Division.

      (2) EVIDENTIARY HEARING- The evidentiary hearing before a hearing officer shall be in person, unless the appellant agrees to a hearing by telephone or by a review of the case record. The hearing officer shall not be bound by previous findings of fact by the agency in making a determination.

      (3) INFORMATION AT HEARING- The hearing officer shall consider information presented at the hearing without regard to whether the evidence was known to the agency officer, employee, or committee making the adverse decision at the time the adverse decision was made. The hearing officer shall leave the record open after the hearing for a reasonable period of time to allow the submission of information by the appellant or the agency after the hearing to the extent necessary to respond to new facts, information, arguments, or evidence presented or raised by the agency or appellant.

      (4) BURDEN OF PROOF- The appellant shall bear the burden of proving that the adverse decision of the agency was erroneous.

    (d) DETERMINATION NOTICE- The hearing officer shall issue a notice of the determination on the appeal not later than 30 days after a hearing or after receipt of the request of the appellant to waive a hearing, except that the Director may establish an earlier or later deadline. If the determination is not appealed to the Director for review under section 278, the notice provided by the hearing officer shall be considered to be a notice of an administratively final determination.

    (e) EFFECTIVE DATE- The final determination shall be effective as of the date of filing of an application, the date of the transaction or event in question, or the date of the original adverse decision, whichever is applicable.

SEC. 278. DIRECTOR REVIEW OF DETERMINATIONS OF HEARING OFFICERS.

    (a) REQUESTS FOR DIRECTOR REVIEW-

      (1) TIME FOR REQUEST BY APPELLANT- Not later than 30 days after the date on which an appellant receives the determination of a hearing officer under section 277, the appellant shall submit a written request to the Director for review of the determination in order to be entitled to a review by the Director of the determination.

      (2) TIME FOR REQUEST BY AGENCY HEAD- Not later than 15 business days after the date on which an agency receives the determination of a hearing officer under section 277, the head of the agency may make a written request that the Director review the determination.

    (b) DETERMINATION OF DIRECTOR- The Director shall conduct a review of the determination of the hearing officer using the case record, the record from the evidentiary hearing under section 277, the request for review, and such other arguments or information as may be accepted by the Director. Based on such review, the Director shall issue a final determination notice that upholds, reverses, or modifies the determination of the hearing officer. However, if the Director determines that the hearing record is inadequate, the Director may remand all or a portion of the determination for further proceedings to complete the hearing record or, at the option of the Director, to hold a new hearing. The Director shall complete the review and either issue a final determination or remand the determination not later than--

      (1) 10 business days after receipt of the request for review, in the case of a request by the head of an agency for review; or

      (2) 30 business days after receipt of the request for review, in the case of a request by an appellant for review.

    (c) BASIS FOR DETERMINATION- The determination of the hearing officer and the Director shall be based on information from the case record, laws applicable to the matter at issue, and applicable regulations published in the Federal Register and in effect on the date of the adverse decision or the date on which the acts that gave rise to the adverse decision occurred, whichever date is appropriate.

    (d) EQUITABLE RELIEF- Subject to regulations issued by the Secretary, the Director shall have the authority to grant equitable relief under this section in the same manner and to the same extent as such authority is provided to the Secretary under section 326 of the Food and Agriculture Act of 1962 (7 U.S.C. 1339a) and other laws. Notwithstanding the administrative finality of a final determination of an appeal by the Division, the Secretary shall have the authority to grant equitable or other types of relief to the appellant after an administratively final determination is issued by the Division.

    (e) EFFECTIVE DATE- A final determination issued by the Director shall be effective as of the date of filing of an application, the date of the transaction or event in question, or the date of the original adverse decision, whichever is applicable.

SEC. 279. JUDICIAL REVIEW.

    A final determination of the Division shall be reviewable and enforceable by any United States district court of competent jurisdiction in accordance with chapter 7 of title 5, United States Code.

SEC. 280. IMPLEMENTATION OF FINAL DETERMINATIONS OF DIVISION.

    On the return of a case to an agency pursuant to the final determination of the Division, the head of the agency shall implement the final determination not later than 30 days after the effective date of the notice of the final determination.

SEC. 281. CONFORMING AMENDMENTS RELATING TO NATIONAL APPEALS DIVISION.

    (a) DECISIONS OF STATE, COUNTY, AND AREA COMMITTEES-

      (1) APPLICATION OF SUBSECTION- This subsection shall apply only with respect to functions of the Consolidated Farm Service Agency or the Commodity Credit Corporation that are under the jurisdiction of a State, county, or area committee established under section 8(b)(5) of the Soil Conservation and Domestic Allotment Act (16 U.S.C. 590h(b)(5)) or an employee of such a committee.

      (2) FINALITY- Each decision of a State, county, or area committee (or an employee of such a committee) covered by paragraph (1) that is made in good faith in the absence of misrepresentation, false statement, fraud, or willful misconduct shall be final not later than 90 days after the date of filing of the application for benefits, unless the decision is--

        (A) appealed under this subtitle; or

        (B) modified by the Administrator of the Consolidated Farm Service Agency or the Executive Vice President of the Commodity Credit Corporation.

      (3) RECOVERY OF AMOUNTS- If the decision of the State, county, or area committee has become final under paragraph (2), no action may be taken by the Consolidated Farm Service Agency, the Commodity Credit Corporation, or a State, county, or area committee to recover amounts found to have been disbursed as a result of a decision in error unless the participant had reason to believe that the decision was erroneous.

      (4) SAVINGS PROVISION- For purposes of this subsection, a reference to the ‘Consolidated Farm Service Agency’ includes any other office, agency, or administrative unit of the Department assigned the functions authorized for the Consolidated Farm Service Agency under section 226.

    (b) AGRICULTURAL STABILIZATION AND CONSERVATION SERVICE- Section 426 of the Agricultural Act of 1949 (7 U.S.C. 1433e) is repealed.

    (c) FARMERS HOME ADMINISTRATION- Section 333B of the Consolidated Farm and Rural Development Act (7 U.S.C. 1983b) is repealed.

SEC. 282. EXPANSION OF ISSUES COVERED BY STATE MEDIATION PROGRAMS.

    (a) EXPANSION OF MEDIATION PROGRAMS- Section 501 of the Agricultural Credit Act of 1987 (7 U.S.C. 5101) is amended--

      (1) in subsection (a), by striking ‘an agricultural loan mediation program’ and inserting ‘a mediation program’;

      (2) in subsection (b), by striking ‘agricultural loan’; and

      (3) by striking subsection (c) and inserting the following new subsection:

    ‘(c) REQUIREMENTS OF STATE MEDIATION PROGRAMS-

      ‘(1) ISSUES COVERED- To be certified as a qualifying State, the mediation program of the State must provide mediation services for the persons described in paragraph (2) who are involved in agricultural loans or agricultural loans and one or more of the following issues under the jurisdiction of the Department of Agriculture:

        ‘(A) Wetlands determinations.

        ‘(B) Compliance with farm programs, including conservation programs.

        ‘(C) Agricultural credit.

        ‘(D) Rural water loan programs.

        ‘(E) Grazing on National Forest System lands.

        ‘(F) Pesticides.

        ‘(G) Such other issues as the Secretary considers appropriate.

      ‘(2) PERSONS ELIGIBLE FOR MEDIATION- The persons referred to in paragraph (1) are producers, their creditors (if applicable), and other persons directly affected by actions of the Department of Agriculture.

      ‘(3) CERTIFICATION CONDITIONS- The Secretary shall certify a State as a qualifying State with respect to the issues proposed to be covered by the mediation program of the State if the mediation program--

        ‘(A) provides for mediation services that, if decisions are reached, result in mediated, mutually agreeable decisions between the parties to the mediation;

        ‘(B) is authorized or administered by an agency of the State government or by the Governor of the State;

        ‘(C) provides for the training of mediators;

        ‘(D) provides that the mediation sessions shall be confidential;

        ‘(E) ensures, in the case of agricultural loans, that all lenders and borrowers of agricultural loans receive adequate notification of the mediation program; and

        ‘(F) ensures, in the case of other issues covered by the mediation program, that persons directly affected by actions of the Department of Agriculture receive adequate notification of the mediation program.’.

    (b) PARTICIPATION OF DEPARTMENT- Section 503 of such Act (7 U.S.C. 5103) is amended--

      (1) by striking ‘agricultural loan’ each place it appears;

      (2) in the matter preceding subparagraph (A) of subsection (a)(1)--

        (A) by inserting ‘or agency’ after ‘program’; and

        (B) by striking ‘that makes, guarantees, or insures agricultural loans’;

      (3) in subsection (a)(1)(A)--

        (A) by inserting ‘or agency’ after ‘such program’; and

        (B) by inserting ‘certified under section 501’ after ‘mediation program’;

      (4) in subsection (a)(1)(B)--

        (A) by striking ‘, effective beginning on the date of the enactment of this Act,’; and

        (B) by inserting ‘certified under section 501’ after ‘mediation programs’; and

      (5) in subsection (a)(1)(C)--

        (A) in clause (i), by striking ‘described in’ and inserting ‘certified under’; and

        (B) in clause (ii), by inserting ‘if applicable,’ before ‘present’.

    (c) REGULATIONS- Section 504 of such Act (7 U.S.C. 5104) is amended--

      (1) by striking ‘Within 150 days after the date of the enactment of this Act, the’ and inserting ‘The’; and

      (2) by adding at the end the following new sentence: ‘The regulations prescribed by the Secretary shall require qualifying States to adequately train mediators to address all of the issues covered by the mediation program of the State.’.

    (d) REPORT- Section 505 of such Act (7 U.S.C. 5105) is amended by striking ‘1990’ and inserting ‘1998’.

    (e) AUTHORIZATION OF APPROPRIATIONS- Section 506 of such Act (7 U.S.C. 5106) is amended by striking ‘1995’ and inserting ‘2000’.

    (f) CONFORMING AMENDMENTS-

      (1) REFERENCES TO AGRICULTURAL LOANS- Subtitle A of title V of such Act is amended--

        (A) in sections 502 and 505(1) (7 U.S.C. 5102, 5105(1)), by striking ‘agricultural loan’ each place it appears; and

        (B) in section 505(3) (7 U.S.C. 5105(3)), by striking ‘an agricultural loan mediation’ and inserting ‘a mediation’.

      (2) WAIVER OF FARM CREDIT SYSTEM MEDIATION RIGHTS BY BORROWERS- Section 4.14E of the Farm Credit Act of 1971 (12 U.S.C. 2202e) is amended by striking ‘agricultural loan’.

      (3) WAIVER OF FMHA MEDIATION RIGHTS BY BORROWERS- Section 358 of the Consolidated Farm and Rural Development Act (7 U.S.C. 2006) is amended by striking ‘agricultural loan’.

SEC. 283. AUTHORIZATION OF APPROPRIATIONS.

    There are authorized to be appropriated such sums as may be necessary to carry out the activities of the Division.

Subtitle I--Miscellaneous Reorganization Provisions

SEC. 291. SUCCESSORSHIP PROVISIONS RELATING TO BARGAINING UNITS AND EXCLUSIVE REPRESENTATIVES.

    (a) VOLUNTARY AGREEMENT-

      (1) IN GENERAL- If the exercise of the Secretary’s authority under this title results in changes to an existing bargaining unit that has been certified under chapter 71 of title 5, United States Code, the affected parties shall attempt to reach a voluntary agreement on a new bargaining unit and an exclusive representative for such unit.

      (2) CRITERIA- In carrying out the requirements of this subsection, the affected parties shall use criteria set forth in--

        (A) sections 7103(a)(4), 7111(e), 7111(f)(1), and 7120 of title 5, United States Code, relating to determining an exclusive representative; and

        (B) section 7112 of title 5, United States Code (disregarding subsections (b)(5) and (d) thereof), relating to determining appropriate units.

    (b) EFFECT OF AN AGREEMENT-

      (1) IN GENERAL- If the affected parties reach agreement on the appropriate unit and the exclusive representative for such unit under subsection (a), the Federal Labor Relations Authority shall certify the terms of such agreement, subject to paragraph (2)(A). Nothing in this subsection shall be considered to require the holding of any hearing or election as a condition for certification.

      (2) RESTRICTIONS-

        (A) CONDITIONS REQUIRING NONCERTIFICATION- The Federal Labor Relations Authority may not certify the terms of an agreement under paragraph (1) if--

          (i) it determines that any of the criteria referred to in subsection (a)(2) (disregarding section 7112(a) of title 5, United States Code) have not been met; or

          (ii) after the Secretary’s exercise of authority and before certification under this section, a valid election under section 7111(b) of title 5, United States Code, is held covering any employees who would be included in the unit proposed for certification.

        (B) TEMPORARY WAIVER OF PROVISION THAT WOULD BAR AN ELECTION AFTER A COLLECTIVE BARGAINING AGREEMENT IS REACHED- Nothing in section 7111(f)(3) of title 5, United States Code, shall prevent the holding of an election under section 7111(b) of such title that covers employees within a unit certified under paragraph (1), or giving effect to the results of such an election (including a decision not to be represented by any labor organization), if the election is held before the end of the 12-month period beginning on the date such unit is so certified.

        (C) CLARIFICATION- The certification of a unit under paragraph (1) shall not, for purposes of the last sentence of section 7111(b) of title 5, United States Code, or section 7111(f)(4) of such title, be treated as if it had occurred pursuant to an election.

      (3) DELEGATION-

        (A) IN GENERAL- The Federal Labor Relations Authority may delegate to any regional director (as referred to in section 7105(e) of title 5, United States Code) its authority under the preceding provisions of this subsection.

        (B) REVIEW- Any action taken by a regional director under subparagraph (A) shall be subject to review under the provisions of section 7105(f) of title 5, United States Code, in the same manner as if such action had been taken under section 7105(e) of such title, except that in the case of a decision not to certify, such review shall be required if application therefor is filed by an affected party within the time specified in such provisions.

    (c) DEFINITION- For purposes of this section, the term ‘affected party’ means--

      (1) with respect to an exercise of authority by the Secretary under this title, any labor organization affected thereby; and

      (2) the Department of Agriculture.

SEC. 292. PURCHASE OF AMERICAN-MADE EQUIPMENT AND PRODUCTS.

    (a) SENSE OF CONGRESS- It is the sense of the Congress that, to the greatest extent practicable, all equipment and products purchased using funds made available pursuant to this title should be American-made.

    (b) NOTICE REQUIREMENT- In providing financial assistance to, or entering into any contract with, any entity using funds made available pursuant to this title, the Secretary, to the greatest extent practicable, shall provide to such entity a notice describing the statement made in subsection (a) by the Congress.

SEC. 293. MISCELLANEOUS CONFORMING AMENDMENTS.

    (a) UNITED STATES GRAIN STANDARDS ACT- The United States Grain Standards Act (7 U.S.C. 71 et seq.) is amended--

      (1) in section 3 (7 U.S.C. 75)--

        (A) by inserting ‘and’ at the end of subsection (y);

        (B) by striking subsections (z) and (aa); and

        (C) by redesignating subsection (bb) as subsection (z);

      (2) by striking section 3A (7 U.S.C. 75a);

      (3) in section 5(b) (7 U.S.C. 77(b)), by striking ‘Service employees’ and inserting ‘employees of the Secretary’;

      (4) in sections 7(j)(2) and 7A(l)(2) (7 U.S.C. 79(j)(2) and 79a(l)(2)), by striking ‘supervision by Service personnel of its field office personnel’ in the first sentence of both sections and inserting ‘supervision by the Secretary of the Secretary’s field office personnel’;

      (5) in section 12(c) (7 U.S.C. 87a(c)), by striking ‘or Administrator’;

      (6) in section 12(d) (7 U.S.C. 87a(d)), by striking ‘or the Administrator’;

      (7) except as otherwise provided in this subsection, by striking ‘Administrator’ each place it appears and inserting ‘Secretary’; and

      (8) except as otherwise provided in this subsection, by striking ‘Service’ each place it appears and inserting ‘Secretary’.

    (b) PACKERS AND STOCKYARDS ACT, 1921- Section 407 of the Packers and Stockyards Act, 1921 (7 U.S.C. 228), is amended--

      (1) by striking subsection (b);

      (2) by redesignating subsections (c), (d), (e), and (f), as subsections (b), (c), (d), and (e), respectively; and

      (3) in subsection (e) (as so redesignated), by striking ‘subsection (e)’ and inserting ‘subsection (d)’.

SEC. 294. REMOVAL OF OBSOLETE ADMINISTRATIVE PROVISIONS.

    Section 5316 of title 5, United States Code, is amended--

      (1) by striking ‘Administrator, Agricultural Marketing Service, Department of Agriculture.’;

      (2) by striking ‘Administrator, Agricultural Research Service, Department of Agriculture.’;

      (3) by striking ‘Administrator, Agricultural Stabilization and Conservation Service, Department of Agriculture.’;

      (4) by striking ‘Administrator, Farmers Home Administration.’;

      (5) by striking ‘Administrator, Foreign Agricultural Service, Department of Agriculture.’;

      (6) by striking ‘Administrator, Rural Electrification Administration, Department of Agriculture.’;

      (7) by striking ‘Administrator, Soil Conservation Service, Department of Agriculture.’;

      (8) by striking ‘Chief Forester of the Forest Service, Department of Agriculture.’;

      (9) by striking ‘Director of Science and Education, Department of Agriculture.’;

      (10) by striking ‘Administrator, Animal and Plant Health Inspection Service, Department of Agriculture.’; and

      (11) by striking ‘Administrator, Federal Grain Inspection Service, Department of Agriculture.’.

SEC. 295. PROPOSED CONFORMING AMENDMENTS.

    Not later than 180 days after the date of the enactment of this Act, the Secretary shall submit to Congress recommended legislation containing additional technical and conforming amendments to Federal laws that are required as a result of the enactment of this title.

SEC. 296. TERMINATION OF AUTHORITY.

    (a) IN GENERAL- Subject to subsection (b), the authority delegated to the Secretary by this title to reorganize the Department shall terminate on the date that is 2 years after the date of enactment of this Act.

    (b) FUNCTIONS- Subsection (a) shall not affect--

      (1) the authority of the Secretary to continue to carry out a function that the Secretary performs on the date that is 2 years after the date of enactment of this Act;

      (2) the authority delegated to the Secretary under Reorganization Plan No. 2 of 1953 (5 U.S.C. App.; 7 U.S.C. 2201 note); or

      (3) the authority of an agency, office, officer, or employee of the Department to continue to perform all functions delegated or assigned to the entity or person as of that termination date.

TITLE III--MISCELLANEOUS

SEC. 301. POULTRY LABELING.

    It is the sense of Congress that--

      (1) the United States Department of Agriculture should--

        (A) carry out the plans of the Department to hold public hearings for the purpose of receiving public input on issues related to the conditions under which poultry sold in the United States may be labeled ‘fresh’; and

        (B) finalize and publish a decision on the issues as expeditiously as possible after holding the hearings; and

      (2) no person serving on the expert advisory committee established to advise the Secretary of Agriculture on the issues should stand to profit, or represent any interest that would stand to profit, from the decision of the Department on the issues.

SEC. 302. FIRST AMENDMENT RIGHTS OF EMPLOYEES OF THE UNITED STATES DEPARTMENT OF AGRICULTURE.

    Notwithstanding any other provision of law, no employee of the United States Department of Agriculture shall be peremptorily removed, on or after February 15, 1994, from the position of the employee without an opportunity for a public or nonpublic hearing, at the option of the employee, because of remarks made during personal time in opposition to policies, or proposed policies, of the Department, including policies or proposed policies regarding homosexuals. Any employee removed on or after February 15, 1994, without the opportunity for such a hearing shall be reinstated to the position of the employee pending such a hearing.

SEC. 303. ADJUSTED COST OF THRIFTY FOOD PLAN.

    (a) IN GENERAL- Section 3(o)(11) of the Food Stamp Act of 1977 (7 U.S.C. 2012(o)(11)) is amended by inserting ‘and (in the case of households residing in Alaska) on October 1, 1994,’ after ‘1992,’.

    (b) EFFECTIVE DATE- The amendment made by subsection (a) shall be effective beginning on September 30, 1994.

SEC. 304. OFFICE OF RISK ASSESSMENT AND COST-BENEFIT ANALYSIS.

    (a) OFFICE OF RISK ASSESSMENT AND COST-BENEFIT ANALYSIS- The Secretary of Agriculture shall establish in the Department of Agriculture an Office of Risk Assessment and Cost-Benefit Analysis, which shall be under the direction of a Director appointed by the Secretary.

    (b) FUNCTIONS- The Director shall ensure that any regulatory analysis that is conducted under this section includes a risk assessment and cost-benefit analysis that is performed consistently and uses reasonably obtainable and sound scientific, technical, economic, and other data.

      (1) IN GENERAL- Effective six months after the date of enactment of this Act, the Secretary of Agriculture shall publish in the Federal Register, for each proposed major regulation the primary purpose of which is to regulate issues of human health, human safety, or the environment that is promulgated by the Department after the enactment of this Act, an analysis with as much specificity as practicable, of--

        (A) the risk, including the effect of the risk, to human health, human safety, or the environment, and any combination thereof, addressed by the regulation, including, where applicable and practicable, the health and safety risks to persons who are disproportionately exposed or particularly sensitive;

        (B) the costs associated with the implementation of, and compliance with, the regulation;

        (C) where appropriate and meaningful, a comparison of that risk relative to other similar risks regulated by the Department or other Federal Agency, resulting from comparable activities and exposure pathways (such comparisons should consider relevant distinctions among risks, such as the voluntary or involuntary nature of risks and the preventability or nonpreventability of risks); and

        (D) the quantitative and qualitative benefits of the regulation, including the reduction or prevention of risk expected from the regulation.

    Where such a regulatory analysis is not practicable because of compelling circumstances, the Director shall provide an explanation in lieu of conducting an analysis under this section.

      (2) EVALUATION- The regulatory analysis referred to in paragraph (1) should also contain a statement that the Secretary of Agriculture evaluated--

        (A) whether the regulation will advance the purpose of protecting against the risk referred to in paragraph (1)(A); and

        (B) whether the regulation will produce benefits and reduce risks to human health, human safety, or the environment, and any combination thereof, in a cost-effective manner as a result of the implementation of and compliance with the regulation, by local, State, and Federal Government and other public and private entities, as estimated in paragraph (1)(B).

      (3) This section shall not be construed to amend, modify, or alter any statute and shall not be subject to judicial review. This section shall not be construed to grant a cause of action to any person. The Secretary of Agriculture shall perform the analyses required in this section in such a manner that does not delay the promulgation or implementation of regulations mandated by statute or judicial order.

    (c) DEFINITION- As used in this section, the term ‘major regulation’ means any regulation that the Secretary of Agriculture estimates is likely to have an annual impact on the economy of the United States of $100,000,000 in 1994 dollars.

SEC. 305. FAIR AND EQUITABLE TREATMENT OF SOCIALLY DISADVANTAGED PRODUCERS.

    (a) FAIR CROP ACREAGE BASES AND FARM PROGRAM PAYMENT YIELDS- If the Secretary of Agriculture determines that crop acreage bases or farm program payment yields established for farms owned or operated by socially disadvantaged producers are not established in accordance with title V of the Agricultural Act of 1949 (7 U.S.C. 1461 et seq.), the Secretary shall adjust the bases and yields to conform to the requirements of such title and make available any appropriate commodity program benefits.

    (b) FAIR APPLICATION OF CONSOLIDATED FARM AND RURAL DEVELOPMENT ACT- If the Secretary of Agriculture determines that application of the Consolidated Farm and Rural Development Act (7 U.S.C. 1921 et seq.) with respect to socially disadvantaged producers is not consistent with the requirements of such Act, the Secretary shall make such changes in the administration of such Act as the Secretary considers necessary to provide for the fair and equitable treatment of socially disadvantaged producers under such Act.

    (c) REPORT ON TREATMENT OF SOCIALLY DISADVANTAGED PRODUCERS-

      (1) REPORT REQUIRED- The Comptroller General of the United States shall prepare a report to determine--

        (A) whether socially disadvantaged producers are underrepresented on State, county, area, or local committees established under section 8(b)(5) of the Soil Conservation and Domestic Allotment Act (16 U.S.C. 590h(b)(5)) or local review committees established under section 363 of the Agricultural Adjustment Act of 1938 (7 U.S.C. 1363) because of racial, ethnic, or gender prejudice; and

        (B) if such underrepresentation exists, whether it inhibits or interferes with the participation of socially disadvantaged producers in programs of the Department of Agriculture.

      (2) SUBMISSION OF REPORT- Not later than February 1, 1995, the Comptroller General shall submit the report required by this subsection to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate.

    (d) DEFINITION- For purposes of this section, the term ‘socially disadvantaged producer’ means a producer who is a member of a group whose members have been subjected to racial, ethnic, or gender prejudice because of their identity as members of a group without regard to their individual qualities.

SEC. 306. AVIATION INSPECTIONS.

    (a) STUDY OF AIRCRAFT INSPECTIONS-

      (1) INTENT OF STUDY- The intent of the study required by this subsection is to examine the cost efficiencies of conducting inspections of aircraft and pilots by one Federal agency without reducing aircraft, passenger, or pilot safety standards or lowering mission preparedness.

      (2) STUDY REQUIRED- The Secretary of Agriculture and the Secretary of Transportation shall jointly conduct a study of the inspection specifications and procedures by which aircraft and pilots contracted by the Department are certified to determine the cost efficiencies of eliminating duplicative Department inspection requirements and transferring some or all inspection requirements to the Federal Aviation Administration, while ensuring that neither aircraft, passenger, nor pilot safety is reduced and that mission preparedness is maintained.

      (3) SPECIAL CONSIDERATIONS- In conducting the study, the Secretaries shall evaluate current inspection specifications and procedures mandated by the Department and the Forest Service, taking into consideration the unique requirements and risks of particular Department and Forest Service missions that may require special inspection specifications and procedures to ensure the safety of Department and Forest Service personnel and their contractees.

      (4) MAINTENANCE OF STANDARDS AND PREPAREDNESS- In making recommendations to transfer inspection authority or otherwise change Department inspection specifications and procedures, the Secretaries shall ensure that the implementation of any such recommendations does not lower aircraft or pilot standards or preparedness for Department or Forest Service missions.

      (5) SUBMISSION OF RESULTS- Not later than 180 days after the date of the enactment of this Act, the Secretaries shall submit to Congress the results of the study, including any recommendations to transfer inspection authority or otherwise change Department inspection specifications and procedures and a cost-benefit analysis of such recommendations.

    (b) REVIEW OF RECENTLY ADOPTED AIRCRAFT POLICY-

      (1) REVIEW REQUIRED- The Secretaries shall review the policy initiated by the Secretary of Agriculture on July 1, 1994, to accept Federal Aviation Administration inspections on aircraft and pilots that provide ‘airport to airport’ service for the Forest Service. The policy is currently being cooperatively developed by the Department and the Federal Aviation Administration and is intended to reduce duplicative inspections and to reduce Government costs, while maintaining aircraft, passenger, and pilot safety standards, specifications and procedures currently required by the Department and the Forest Service.

      (2) EXPANSION OF POLICY- As part of the review, the Secretaries shall examine the feasibility and desirability of applying this policy on a Government-wide basis.

      (3) SUBMISSION OF RESULTS- Not later than one year after the date of the implementation of the policy, the Secretary of Agriculture shall submit to Congress the results of the review, including any recommendations that the Secretary considers appropriate.

Speaker of the House of Representatives.

Vice President of the United States and

President of the Senate.