S. 1541 (104th): Agricultural Reform and Improvement Act of 1996

104th Congress, 1995–1996. Text as of Feb 07, 1996 (Passed the Senate (Engrossed)).

Status & Summary | PDF | Source: GPO

S 1541 ES

104th CONGRESS

2d Session

S. 1541


AN ACT

To extend, reform, and improve agricultural commodity, trade, conservation, and other programs, 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 ‘Agricultural Reform and Improvement Act of 1996’.

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

      Sec. 1. Short title; table of contents.

TITLE I--AGRICULTURAL MARKET TRANSITION PROGRAM

      Sec. 101. Short title.

      Sec. 102. Definitions.

      Sec. 103. Production flexibility contracts.

      Sec. 104. Nonrecourse marketing assistance loans and loan deficiency payments.

      Sec. 105. Payment limitations.

      Sec. 106. Peanut program.

      Sec. 107. Sugar program.

      Sec. 108. Administration.

      Sec. 109. Suspension and repeal of permanent authorities.

      Sec. 110. Effect of amendments.

TITLE II--AGRICULTURAL TRADE

Subtitle A--Amendments to Agricultural Trade Development and Assistance Act of 1954 and Related Statutes

      Sec. 201. Food aid to developing countries.

      Sec. 202. Trade and development assistance.

      Sec. 203. Agreements regarding eligible countries and private entities.

      Sec. 204. Terms and conditions of sales.

      Sec. 205. Use of local currency payment.

      Sec. 206. Value-added foods.

      Sec. 207. Eligible organizations.

      Sec. 208. Generation and use of foreign currencies.

      Sec. 209. General levels of assistance under Public Law 480.

      Sec. 210. Food aid consultative group.

      Sec. 211. Support of nongovernmental organizations.

      Sec. 212. Commodity determinations.

      Sec. 213. General provisions.

      Sec. 214. Agreements.

      Sec. 215. Use of commodity credit corporation.

      Sec. 216. Administrative provisions.

      Sec. 217. Expiration date.

      Sec. 218. Regulations.

      Sec. 219. Independent evaluation of programs.

      Sec. 220. Authorization of appropriations.

      Sec. 221. Coordination of foreign assistance programs.

      Sec. 222. Micronutrient fortification pilot program.

      Sec. 223. Use of certain local currency.

      Sec. 224. Levels of assistance under farmer-to-farmer program.

      Sec. 225. Food security commodity reserve.

      Sec. 226. Protein byproducts derived from alcohol fuel production.

      Sec. 227. Food for progress program.

      Sec. 228. Use of foreign currency proceeds from export sales financing.

      Sec. 229. Stimulation of foreign production.

Subtitle B--Amendments to Agricultural Trade Act of 1978

      Sec. 241. Agricultural export promotion strategy.

      Sec. 242. Export credits.

      Sec. 243. Market promotion program.

      Sec. 244. Export enhancement program.

      Sec. 245. Arrival certification.

      Sec. 246. Compliance.

      Sec. 247. Regulations.

      Sec. 248. Trade compensation and assistance programs.

      Sec. 249. Foreign agricultural service.

      Sec. 250. Reports.

Subtitle C--Miscellaneous

      Sec. 251. Reporting requirements relating to tobacco.

      Sec. 252. Triggered export enhancement.

      Sec. 253. Disposition of commodities to prevent waste.

      Sec. 254. Direct sales of dairy products.

      Sec. 255. Export sales of dairy products.

      Sec. 256. Debt-for-health-and-protection swap.

      Sec. 257. Policy on expansion of international markets.

      Sec. 258. Policy on maintenance and development of export markets.

      Sec. 259. Policy on trade liberalization.

      Sec. 260. Agricultural trade negotiations.

      Sec. 261. Policy on unfair trade practices.

      Sec. 262. Agricultural aid and trade missions.

      Sec. 263. Annual reports by agricultural attaches.

      Sec. 264. World livestock market price information.

      Sec. 265. Orderly liquidation of stocks.

      Sec. 266. Sales of extra long staple cotton.

      Sec. 267. Regulations.

      Sec. 268. Emerging markets.

      Sec. 269. Import assistance for CBI beneficiary countries and the Philippines.

      Sec. 270. Studies, reports, and other provisions.

      Sec. 271. Implementation of commitments under Uruguay Round Agreements.

      Sec. 272. Sense of Congress concerning multilateral disciplines on credit guarantees.

      Sec. 273. Foreign market development cooperator program.

      Sec. 274. Price support for rice.

TITLE III--CONSERVATION

Subtitle A--Definitions

      Sec. 301. Definitions.

Subtitle B--Environmental Conservation Acreage Reserve Program

      Sec. 311. Environmental conservation acreage reserve program.

      Sec. 312. Conservation reserve program.

      Sec. 313. Wetlands reserve program.

      Sec. 314. Environmental quality incentives program.

Subtitle C--Conservation Funding

      Sec. 321. Conservation funding.

Subtitle D--National Natural Resources Conservation Foundation

      Sec. 331. Short title.

      Sec. 332. Definitions.

      Sec. 333. National Natural Resources Conservation Foundation.

      Sec. 334. Composition and operation.

      Sec. 335. Officers and employees.

      Sec. 336. Corporate powers and obligations of the Foundation.

      Sec. 337. Administrative services and support.

      Sec. 338. Audits and petition of Attorney General for equitable relief.

      Sec. 339. Release from liability.

      Sec. 340. Authorization of appropriations.

Subtitle E--Miscellaneous

      Sec. 351. Flood risk reduction.

      Sec. 352. Forestry.

      Sec. 353. State technical committees.

      Sec. 354. Conservation of private grazing land.

      Sec. 355. Conforming amendments.

      Sec. 356. Water bank program.

      Sec. 357. Flood water retention pilot projects.

      Sec. 358. Wetland conservation exemption.

      Sec. 359. Floodplain easements.

      Sec. 360. Resource conservation and development program reauthorization.

      Sec. 361. Conservation reserve new acreage.

      Sec. 362. Repeal of report requirement.

      Sec. 363. Watershed protection and flood prevention act amendments.

      Sec. 364. Abandonment of converted wetlands.

TITLE IV--NUTRITION ASSISTANCE

      Sec. 401. Food stamp program.

      Sec. 402. Commodity distribution program; commodity supplemental food program.

      Sec. 403. Emergency food assistance program.

      Sec. 404. Soup kitchens program.

      Sec. 405. National commodity processing.

TITLE V--MISCELLANEOUS

Subtitle A--General Miscellaneous Provisions

      Sec. 501. Fund for dairy producers to pay for nutrient management.

      Sec. 502. Crop insurance.

      Sec. 503. Revenue insurance.

      Sec. 504. Collection and use of agricultural quarantine and inspection fees.

      Sec. 505. Commodity Credit Corporation interest rate.

      Sec. 506. Everglades Agricultural Area.

      Sec. 507. Fund for Rural America.

Subtitle B--Options Pilot Programs and Risk Management Education

      Sec. 511. Short title.

      Sec. 512. Purpose.

      Sec. 513. Pilot programs.

      Sec. 514. Terms and conditions.

      Sec. 515. Notice.

      Sec. 516. Commodity Credit Corporation.

      Sec. 517. Risk management education.

Subtitle C--Commercial Transportation of Equine for Slaughter

      Sec. 521. Findings.

      Sec. 522. Definitions.

      Sec. 523. Standards for humane commercial transportation of equine for slaughter.

      Sec. 524. Records.

      Sec. 525. Agents.

      Sec. 526. Cooperative agreements.

      Sec. 527. Investigations and inspections.

      Sec. 528. Interference with enforcement.

      Sec. 529. Jurisdiction of courts.

      Sec. 530. Civil and criminal penalties.

      Sec. 531. Payments for temporary or medical assistance for equine due to violations.

      Sec. 532. Relationship to State law.

      Sec. 533. Authorization of appropriations.

Subtitle D--Miscellaneous

      Sec. 541. Livestock dealer trust.

      Sec. 542. Planting of energy crops.

      Sec. 543. Reimbursable agreements.

      Sec. 544. Swine health protection.

      Sec. 545. Cooperative work for protection, management, and improvement of National Forest System.

      Sec. 546. Amendment of the Virus-Serum Toxin Act of 1913.

      Sec. 547. Overseas tort claims.

      Sec. 548. Graduate School of the United States Department of Agriculture.

      Sec. 549. Student intern subsistence program.

      Sec. 550. Conveyance of land to White Oak Cemetery.

      Sec. 551. Advisory board on agricultural air quality.

      Sec. 552. Water systems for rural and Native villages in Alaska.

      Sec. 553. Eligibility for grants to broadcasting systems.

      Sec. 554. Wildlife Habitat Incentives Program.

      Sec. 555. Indian reservations.

      Sec. 556. ICD reimbursement for overhead expenses.

      Sec. 557. Clarification of effect of resource planning on allocation or use of water.

TITLE VI--CREDIT

Subtitle A--Agricultural Credit

chapter 1--farm ownership loans

      Sec. 601. Limitation on direct farm ownership loans.

      Sec. 602. Purposes of loans.

      Sec. 603. Soil and water conservation and protection.

      Sec. 604. Interest rate requirements.

      Sec. 605. Insurance of loans.

      Sec. 606. Loans guaranteed.

chapter 2--operating loans

      Sec. 611. Limitation on direct operating loans.

      Sec. 612. Purposes of operating loans.

      Sec. 613. Participation in loans.

      Sec. 614. Line-of-credit loans.

      Sec. 615. Insurance of operating loans.

      Sec. 616. Special assistance for beginning farmers and ranchers.

      Sec. 617. Limitation on period for which borrowers are eligible for guaranteed assistance.

chapter 3--emergency loans

      Sec. 621. Hazard insurance requirement.

      Sec. 622. Maximum emergency loan indebtedness.

      Sec. 623. Insurance of emergency loans.

chapter 4--administrative provisions

      Sec. 631. Use of collection agencies.

      Sec. 632. Notice of loan service programs.

      Sec. 633. Sale of property.

      Sec. 634. Definitions.

      Sec. 635. Authorization for loans.

      Sec. 636. List of certified lenders and inventory property demonstration project.

      Sec. 637. Homestead property.

      Sec. 638. Restructuring.

      Sec. 639. Transfer of inventory lands.

      Sec. 640. Implementation of target participation rates.

      Sec. 641. Delinquent borrowers and credit study.

chapter 5--general provisions

      Sec. 651. Conforming amendments.

Subtitle B--Farm Credit System

chapter 1--agricultural mortgage secondary market

      Sec. 661. Definition of real estate.

      Sec. 662. Definition of certified facility.

      Sec. 663. Duties of Federal Agricultural Mortgage Corporation.

      Sec. 664. Powers of the Corporation.

      Sec. 665. Federal reserve banks as depositaries and fiscal agents.

      Sec. 666. Certification of agricultural mortgage marketing facilities.

      Sec. 667. Guarantee of qualified loans.

      Sec. 668. Mandatory reserves and subordinated participation interests eliminated.

      Sec. 669. Standards requiring diversified pools.

      Sec. 670. Small farms.

      Sec. 671. Definition of an affiliate.

      Sec. 672. State usury laws superseded.

      Sec. 673. Extension of capital transition period.

      Sec. 674. Minimum capital level.

      Sec. 675. Critical capital level.

      Sec. 676. Enforcement levels.

      Sec. 677. Recapitalization of the Corporation.

      Sec. 678. Liquidation of the Federal Agricultural Mortgage Corporation.

chapter 2--regulatory relief

      Sec. 681. Compensation of association personnel.

      Sec. 682. Use of private mortgage insurance.

      Sec. 683. Removal of certain borrower reporting requirement.

      Sec. 684. Reform of regulatory limitations on dividend, member business, and voting practices of eligible farmer-owned cooperatives.

      Sec. 685. Removal of Federal Government certification requirement for certain private sector financings.

      Sec. 686. Borrower stock.

      Sec. 687. Disclosure relating to adjustable rate loans.

      Sec. 688. Borrowers’ rights.

      Sec. 689. Formation of administrative service entities.

      Sec. 690. Joint management agreements.

      Sec. 691. Dissemination of quarterly reports.

      Sec. 692. Regulatory review.

      Sec. 693. Examination of Farm Credit System Institutions.

      Sec. 694. Conservatorships and receiverships.

      Sec. 695. Farm Credit Insurance Fund operations.

      Sec. 696. Examinations by the Farm Credit System Insurance Corporation.

      Sec. 697. Powers with respect to troubled insured system banks.

      Sec. 698. Oversight and regulatory actions by the Farm Credit System Insurance Corporation.

      Sec. 699. Farm Credit System Insurance Corporation Board of Directors.

      Sec. 699A. Liability for making criminal referrals.

TITLE VII--RURAL DEVELOPMENT

Subtitle A--Amendments to the Food, Agriculture, Conservation, and Trade Act of 1990

chapter 1--general provisions

      Sec. 701. Rural investment partnerships.

      Sec. 702. Water and waste facility financing.

      Sec. 703. Rural wastewater circuit rider program.

      Sec. 704. Telemedicine and distance learning services in rural areas.

      Sec. 705. Limitation on authorization of appropriations for rural technology grants.

      Sec. 706. Monitoring the economic progress of rural America.

      Sec. 707. Analysis by Office of Technology Assessment.

      Sec. 708. Rural health infrastructure improvement.

      Sec. 709. Census of agriculture.

chapter 2--alternative agricultural research and commercialization

      Sec. 721. Definitions.

      Sec. 722. Alternative Agricultural Research and Commercialization Corporation.

      Sec. 723. Board of directors, employees, and facilities.

      Sec. 724. Research and development grants, contracts, and agreements.

      Sec. 725. Commercialization assistance.

      Sec. 726. General rules regarding the provision of assistance.

      Sec. 727. Regional centers.

      Sec. 728. Alternative Agricultural Research and Commercialization Revolving Fund.

      Sec. 729. Procurement preferences for products receiving corporation assistance.

      Sec. 730. Business plan and feasibility study and report.

Subtitle B--Amendments to the Consolidated Farm and Rural Development Act

chapter 1--general provisions

      Sec. 741. Water and waste facility loans and grants.

      Sec. 742. Emergency community water assistance grant program for small communities.

      Sec. 743. Emergency community water assistance grant program for smallest communities.

      Sec. 744. Agricultural Credit Insurance Fund.

      Sec. 745. Rural Development Insurance Fund.

      Sec. 746. Insured watershed and resource conservation and development loans.

      Sec. 747. Rural industrialization assistance.

      Sec. 748. Administration.

      Sec. 749. Authorization of appropriations.

      Sec. 750. Testimony before congressional committees.

      Sec. 751. Prohibition on use of loans for certain purposes.

      Sec. 752. Rural development certified lenders program.

      Sec. 753. System for delivery of certain rural development programs.

      Sec. 754. State rural economic development review panel.

      Sec. 755. Limited transfer authority of loan amounts.

      Sec. 756. Allocation and transfer of loan guarantee authority.

      Sec. 757. National sheep industry improvement center.

chapter 2--rural community advancement program

      Sec. 761. Rural community advancement program.

      Sec. 762. Community facilities grant program.

Subtitle C--Amendments to the Rural Electrification Act of 1936

      Sec. 771. Purposes; investigations and reports.

      Sec. 772. Authorization of appropriations.

      Sec. 773. Loans for electrical plants and transmission lines.

      Sec. 774. Loans for electrical and plumbing equipment.

      Sec. 775. Testimony on budget requests.

      Sec. 776. Transfer of functions of administration created by executive order.

      Sec. 777. Annual report.

      Sec. 778. Prohibition on restricting water and waste facility services to electric customers.

      Sec. 779. Telephone loan terms and conditions.

      Sec. 780. Privatization program.

      Sec. 781. Rural business incubator fund.

Subtitle D--Miscellaneous Rural Development Provisions

      Sec. 791. Interest rate formula.

      Sec. 792. Grants for financially stressed farmers, dislocated farmers, and rural families.

      Sec. 793. Cooperative agreements.

TITLE VIII--RESEARCH EXTENSION AND EDUCATION

Subtitle A--Amendments to National Agricultural Research, Extension, and Teaching Policy Act of 1977 and Related Statutes

      Sec. 801. Purposes of agricultural research, extension, and education.

      Sec. 802. Subcommittee on Food, Agricultural, and Forestry Research.

      Sec. 803. Joint Council on Food and Agricultural Sciences.

      Sec. 804. National Agricultural Research, Extension, Education, and Economics Advisory Board.

      Sec. 805. Agricultural Science and Technology Review Board.

      Sec. 806. Federal Advisory Committee Act exemption for Federal-State cooperative programs.

      Sec. 807. Coordination and planning of agricultural research, extension, and education.

      Sec. 808. Grants and fellowships for food and agricultural sciences education.

      Sec. 809. Grants for research on the production and marketing of alcohols and industrial hydrocarbons from agricultural commodities and forest products.

      Sec. 810. Policy research centers.

      Sec. 811. Humannutritionintervention and health promotion research program.

      Sec. 812. Food and nutrition education program.

      Sec. 813. Purposes and findings relating to animal health and disease research.

      Sec. 814. Animal Health Science Research Advisory Board.

      Sec. 815. Animal health and disease continuing research.

      Sec. 816. Animal health and disease national or regional research.

      Sec. 817. Resident instruction program at 1890 land-grant colleges.

      Sec. 818. Grant program to upgrade agricultural and food sciences facilities at 1890 land-grant colleges.

      Sec. 819. National research and training centennial centers authorization.

      Sec. 820. Grants to States for international trade development centers.

      Sec. 821. Agricultural research programs.

      Sec. 822. Extension education.

      Sec. 823. Supplemental and alternative crops research.

      Sec. 824. Aquaculture assistance programs.

      Sec. 825. Rangeland research.

      Sec. 826. Technical amendments.

Subtitle B--Amendments to Food, Agriculture, Conservation, and Trade Act of 1990

      Sec. 831. Water quality research, education, and coordination.

      Sec. 832. Education program regarding handling of agricultural chemicals and agricultural chemical containers.

      Sec. 833. Program administration.

      Sec. 834. National genetics resources program.

      Sec. 835. National agricultural weather information system.

      Sec. 836. Research regarding production, preparation, processing, handling, and storage of agricultural products.

      Sec. 837. Plant and animal pest and disease control program.

      Sec. 838. Livestock product safety and inspection program.

      Sec. 839. Plant genome mapping program.

      Sec. 840. Specialized research programs.

      Sec. 841. Agricultural telecommunications program.

      Sec. 842. National centers for agricultural product quality research.

      Sec. 843. Turkey research center authorization.

      Sec. 844. Special grant to study constraints on agricultural trade.

      Sec. 845. Pilot project to coordinate food and nutrition education programs.

      Sec. 846. Assistive technology program for farmers with disabilities.

      Sec. 847. Demonstration projects.

      Sec. 848. National rural information center clearinghouse.

      Sec. 849. Global climate change.

      Sec. 850. Technical amendments.

Subtitle C--Miscellaneous Research Provisions

      Sec. 861. Critical agricultural materials research.

      Sec. 862. 1994 Institutions.

      Sec. 863. Smith-Lever Act funding for 1890 land-grant colleges, including Tuskegee University and the District of Columbia.

      Sec. 864. Committee of nine.

      Sec. 865. Agricultural research facilities.

      Sec. 866. National competitive research initiative.

      Sec. 867. Cotton crop reports.

      Sec. 868. Rural development research and education.

      Sec. 869. Human nutrition research.

      Sec. 870. Dairy goat research program.

      Sec. 871. Grants to upgrade 1890 land-grant college extension facilities.

      Sec. 872. Stuttgart National Aquaculture Research Center.

      Sec. 873. National aquaculture policy, planning, and development.

      Sec. 874. Expansion of authorities related to the national arboretum.

      Sec. 875. Study of agricultural research service.

      Sec. 876. Labeling of domestic and imported lamb and mutton.

      Sec. 877. Sense of Senate.

TITLE IX--AGRICULTURAL PROMOTION

Subtitle A--Popcorn

      Sec. 901. Short title.

      Sec. 902. Findings and declaration of policy.

      Sec. 903. Definitions.

      Sec. 904. Issuance of orders.

      Sec. 905. Required terms in orders.

      Sec. 906. Referenda.

      Sec. 907. Petition and review.

      Sec. 908. Enforcement.

      Sec. 909. Investigations and power to subpoena.

      Sec. 910. Relation to other programs.

      Sec. 911. Regulations.

      Sec. 912. Authorization of appropriations.

Subtitle B--Canola and Rapeseed

      Sec. 921. Short title.

      Sec. 922. Findings and declaration of policy.

      Sec. 923. Definitions.

      Sec. 924. Issuance and amendment of orders.

      Sec. 925. Required terms in orders.

      Sec. 926. Assessments.

      Sec. 927. Referenda.

      Sec. 928. Petition and review.

      Sec. 929. Enforcement.

      Sec. 930. Investigations and power to subpoena.

      Sec. 931. Suspension or termination of an order.

      Sec. 932. Regulations.

      Sec. 933. Authorization of appropriations.

Subtitle C--Kiwifruit

      Sec. 941. Short title.

      Sec. 942. Findings and purposes.

      Sec. 943. Definitions.

      Sec. 944. Issuance of orders.

      Sec. 945. National Kiwifruit Board.

      Sec. 946. Required terms in order.

      Sec. 947. Permissive terms in order.

      Sec. 948. Petition and review.

      Sec. 949. Enforcement.

      Sec. 950. Investigations and power to subpoena.

      Sec. 951. Referenda.

      Sec. 952. Suspension and termination of order by Secretary.

      Sec. 953. Regulations.

      Sec. 954. Authorization of appropriations.

Subtitle D--Commodity Promotion and Evaluation

      Sec. 961. Commodity promotion and evaluation.

TITLE I--AGRICULTURAL MARKET TRANSITION PROGRAM

SEC. 101. SHORT TITLE.

    This title may be cited as the ‘Agricultural Market Transition Act’.

SEC. 102. DEFINITIONS.

    In this title:

      (1) CONSIDERED PLANTED- The term ‘considered planted’ means acreage that is considered planted under title V of the Agricultural Act of 1949 (7 U.S.C. 1461 et seq.) (as in effect prior to the suspension under section 110(b)(1)(J)).

      (2) CONTRACT- The term ‘contract’ means a production flexibility contract entered into under section 103.

      (3) CONTRACT ACREAGE- The term ‘contract acreage’ means 1 or more crop acreage bases established for contract commodities under title V of the Agricultural Act of 1949 (as in effect prior to the suspension under section 110(b)(1)(J)) that would have been in effect for the 1996 crop (but for the suspension under section 110(b)(1)(J)).

      (4) CONTRACT COMMODITY- The term ‘contract commodity’ means wheat, corn, grain sorghum, barley, oats, upland cotton, and rice.

      (5) CONTRACT PAYMENT- The term ‘contract payment’ means a payment made under section 103 pursuant to a contract.

      (6) CORN- The term ‘corn’ means field corn.

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

      (8) FARM PROGRAM PAYMENT YIELD- The term ‘farm program payment yield’ means the farm program payment yield established for the 1995 crop of a contract commodity under title V of the Agricultural Act of 1949 (as in effect prior to the suspension under section 110(b)(1)(J)).

      (9) LOAN COMMODITY- The term ‘loan commodity’ means each contract commodity, extra long staple cotton, and oilseeds.

      (10) OILSEED- The term ‘oilseed’ means a crop of soybeans, sunflower seed, rapeseed, canola, safflower, flaxseed, mustard seed, or, if designated by the Secretary, other oilseeds.

      (11) PERSON- The term ‘person’ means an individual, partnership, firm, joint-stock company, corporation, association, trust, estate, or State agency.

      (12) PRODUCER-

        (A) IN GENERAL- The term ‘producer’ means a person who, as owner, landlord, tenant, or sharecropper, shares in the risk of producing a crop, and is entitled to share in the crop available for marketing from the farm, or would have shared had the crop been produced.

        (B) HYBRID SEED- The term ‘producer’ includes a person growing hybrid seed under contract. In determining the interest of a grower of hybrid seed in a crop, the Secretary shall not take into consideration the existence of a hybrid seed contract.

      (13) PROGRAM- The term ‘program’ means the agricultural market transition program established under this title.

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

      (15) STATE- The term ‘State’ means each of the several States of the United States, the District of Columbia, the Commonwealth of Puerto Rico, and any other territory or possession of the United States.

      (16) UNITED STATES- The term ‘United States’, when used in a geographical sense, means all of the States.

SEC. 103. PRODUCTION FLEXIBILITY CONTRACTS.

    (a) CONTRACTS AUTHORIZED-

      (1) OFFER AND TERMS- Beginning as soon as practicable after the date of the enactment of this title, the Secretary shall offer to enter into a contract with an eligible owner or operator described in paragraph (2) on a farm containing eligible farmland. Under the terms of a contract, the owner or operator shall agree, in exchange for annual contract payments, to comply with--

        (A) the conservation plan for the farm prepared in accordance with section 1212 of the Food Security Act of 1985 (16 U.S.C. 3812);

        (B) wetland protection requirements applicable to the farm under subtitle C of title XII of the Act (16 U.S.C. 3821 et seq.); and

        (C) the planting flexibility requirements of subsection (j).

      (2) ELIGIBLE OWNERS AND OPERATORS DESCRIBED- The following persons shall be considered to be an owner or operator eligible to enter into a contract:

        (A) An owner of eligible farmland who assumes all of the risk of producing a crop.

        (B) An owner of eligible farmland who shares in the risk of producing a crop.

        (C) An operator of eligible farmland with a share-rent lease of the eligible farmland, regardless of the length of the lease, if the owner enters into the same contract.

        (D) An operator of eligible farmland who cash rents the eligible farmland under a lease expiring on or after September 30, 2002, in which case the consent of the owner is not required.

        (E) An operator of eligible farmland who cash rents the eligible farmland under a lease expiring before September 30, 2002, if the owner consents to the contract.

        (F) An owner of eligible farmland who cash rents the eligible farmland and the lease term expires before September 30, 2002, but only if the actual operator of the farm declines to enter into a contract. In the case of an owner covered by this subparagraph, contract payments shall not begin under a contract until the fiscal year following the fiscal year in which the lease held by the nonparticipating operator expires.

        (G) An owner or operator described in a preceding subparagraph regardless of whether the owner or operator purchased catastrophic risk protection for a fall-planted 1996 crop under section 508(b) of the Federal Crop Insurance Act (7 U.S.C. 1508(b)).

      (3) TENANTS AND SHARECROPPERS- In carrying out this section, the Secretary shall provide adequate safeguards to protect the interests of operators who are tenants and sharecroppers.

    (b) ELEMENTS-

      (1) TIME FOR CONTRACTING-

        (A) DEADLINE- Except as provided in subparagraph (B), the Secretary may not enter into a contract after April 15, 1996.

        (B) CONSERVATION RESERVE LANDS-

          (i) IN GENERAL- At the beginning of each fiscal year, the Secretary shall allow an eligible owner or operator on a farm covered by a conservation reserve contract entered into under section 1231 of the Food Security Act of 1985 (16 U.S.C. 3831) that terminates after the date specified in subparagraph (A) to enter into or expand a production flexibility contract to cover the contract acreage of the farm that was subject to the former conservation reserve contract.

          (ii) AMOUNT- Contract payments made for contract acreage under this subparagraph shall be made at the rate and amount applicable to the annual contract payment level for the applicable crop.

      (2) DURATION OF CONTRACT-

        (A) BEGINNING DATE- A contract shall begin with--

          (i) the 1996 crop of a contract commodity; or

          (ii) in the case of acreage that was subject to a conservation reserve contract described in paragraph (1)(B), the date the production flexibility contract was entered into or expanded to cover the acreage.

        (B) ENDING DATE- A contract shall extend through the 2002 crop.

      (3) ESTIMATION OF CONTRACT PAYMENTS- At the time the Secretary enters into a contract, the Secretary shall provide an estimate of the minimum contract payments anticipated to be made during at least the first fiscal year for which contract payments will be made.

    (c) ELIGIBLE FARMLAND DESCRIBED- Land shall be considered to be farmland eligible for coverage under a contract only if the land has contract acreage attributable to the land and--

      (1) for at least 1 of the 1991 through 1995 crops, at least a portion of the land was enrolled in the acreage reduction program authorized for a crop of a contract commodity under section 101B, 103B, 105B, or 107B of the Agricultural Act of 1949 (as in effect prior to the amendment made by section 110(b)(2)) or was considered planted, including land on a farm that is owned or leased by a beginning farmer (as determined by the Secretary) that the Secretary determines is necessary to establish a fair and equitable crop acreage base;

      (2) was subject to a conservation reserve contract under section 1231 of the Food Security Act of 1985 (16 U.S.C. 3831) whose term expired, or was voluntarily terminated, on or after January 1, 1995; or

      (3) is released from coverage under a conservation reserve contract by the Secretary during the period beginning on January 1, 1995, and ending on the date specified in subsection (b)(1)(A).

    (d) TIME FOR PAYMENT-

      (1) IN GENERAL- An annual contract payment shall be made not later than September 30 of each of fiscal years 1996 through 2002.

      (2) ADVANCE PAYMENTS-

        (A) FISCAL YEAR 1996- At the option of the owner or operator, 50 percent of the contract payment for fiscal year 1996 shall be made not later than June 15, 1996.

        (B) SUBSEQUENT FISCAL YEARS- At the option of the owner or operator for fiscal year 1997 and each subsequent fiscal year, 50 percent of the annual contract payment shall be made on December 15.

    (e) AMOUNTS AVAILABLE FOR CONTRACT PAYMENTS FOR EACH FISCAL YEAR-

      (1) IN GENERAL- The Secretary shall, to the maximum extent practicable, expend on a fiscal year basis the following amounts to satisfy the obligations of the Secretary under all contracts:

        (A) For fiscal year 1996, $5,570,000,000.

        (B) For fiscal year 1997, $5,385,000,000.

        (C) For fiscal year 1998, $5,800,000,000.

        (D) For fiscal year 1999, $5,603,000,000.

        (E) For fiscal year 2000, $5,130,000,000.

        (F) For fiscal year 2001, $4,130,000,000.

        (G) For fiscal year 2002, $4,008,000,000.

      (2) ALLOCATION- The amount made available for a fiscal year under paragraph (1) shall be allocated as follows:

        (A) For wheat, 26.26 percent.

        (B) For corn, 46.22 percent.

        (C) For grain sorghum, 5.11 percent.

        (D) For barley, 2.16 percent.

        (E) For oats, 0.15 percent.

        (F) For upland cotton, 11.63 percent.

        (G) For rice, 8.47 percent.

      (3) ADJUSTMENT- The Secretary shall adjust the amounts allocated for each contract commodity under paragraph (2) for a particular fiscal year by--

        (A) subtracting an amount equal to the amount, if any, necessary to satisfy payment requirements under sections 103B, 105B, and 107B of the Agricultural Act of 1949 (as in effect prior to the amendment made by section 110(b)(2)) for the 1994 and 1995 crops of the commodity;

        (B) adding an amount equal to the sum of all repayments of deficiency payments received under section 114(a)(2) of the Agricultural Act of 1949 for the commodity;

        (C) to the maximum extent practicable, adding an amount equal to the sum of all contract payments withheld by the Secretary, at the request of an owner or operator subject to a contract, as an offset against repayments of deficiency payments otherwise required under section 114(a)(2) of the Act (as so in effect) for the commodity; and

        (D) adding an amount equal to the sum of all refunds of contract payments received during the preceding fiscal year under subsection (h) for the commodity.

      (4) ADDITIONAL RICE ALLOCATION- In addition to the allocations provided under paragraphs (1), (2), and (3), the amounts made available for rice contract payments shall be increased by $17,000,000 for each of fiscal years 1997 through 2002.

    (f) DETERMINATION OF CONTRACT PAYMENTS-

      (1) INDIVIDUAL PAYMENT QUANTITY OF CONTRACT COMMODITIES- For each contract, the payment quantity of a contract commodity for each fiscal year shall be equal to the product of--

        (A) 85 percent of the contract acreage; and

        (B) the farm program payment yield.

      (2) ANNUAL PAYMENT QUANTITY OF CONTRACT COMMODITIES- The payment quantity of each contract commodity covered by all contracts for each fiscal year shall equal the sum of the amounts calculated under paragraph (1) for each individual contract.

      (3) ANNUAL PAYMENT RATE- The payment rate for a contract commodity for each fiscal year shall be equal to--

        (A) the amount made available under subsection (e) for the contract commodity for the fiscal year; divided by

        (B) the amount determined under paragraph (2) for the fiscal year.

      (4) ANNUAL PAYMENT AMOUNT- The amount to be paid under a contract in effect for each fiscal year with respect to a contract commodity shall be equal to the product of--

        (A) the payment quantity determined under paragraph (1) with respect to the contract; and

        (B) the payment rate in effect under paragraph (3).

      (5) ASSIGNMENT OF CONTRACT PAYMENTS- The provisions of section 8(g) of the Soil Conservation and Domestic Allotment Act (16 U.S.C. 590h(g)) (relating to assignment of payments) shall apply to contract payments under this subsection. The owner or operator making the assignment, or the assignee, shall provide the Secretary with notice, in such manner as the Secretary may require in the contract, of any assignment made under this paragraph.

      (6) SHARING OF CONTRACT PAYMENTS- The Secretary shall provide for the sharing of contract payments among the owners and operators subject to the contract on a fair and equitable basis.

    (g) PAYMENT LIMITATION- The total amount of contract payments made to a person under a contract during any fiscal year may not exceed the payment limitations established under sections 1001 through 1001C of the Food Security Act of 1985 (7 U.S.C. 1308 through 1308-3).

    (h) EFFECT OF VIOLATION-

      (1) TERMINATION OF CONTRACT- Except as provided in paragraph (2), if an owner or operator subject to a contract violates the conservation plan for the farm containing eligible farmland under the contract, wetland protection requirements applicable to the farm, or the planting flexibility requirements of subsection (j), the Secretary shall terminate the contract with respect to the owner or operator on each farm in which the owner or operator has an interest. On the termination, the owner or operator shall forfeit all rights to receive future contract payments on each farm in which the owner or operator has an interest and shall refund to the Secretary all contract payments received by the owner or operator during the period of the violation, together with interest on the contract payments as determined by the Secretary.

      (2) REFUND OR ADJUSTMENT- If the Secretary determines that a violation does not warrant termination of the contract under paragraph (1), the Secretary may require the owner or operator subject to the contract--

        (A) to refund to the Secretary that part of the contract payments received by the owner or operator during the period of the violation, together with interest on the contract payments as determined by the Secretary; or

        (B) to accept a reduction in the amount of future contract payments that is proportionate to the severity of the violation, as determined by the Secretary.

      (3) FORECLOSURE- An owner or operator subject to a contract may not be required to make repayments to the Secretary of amounts received under the contract if the contract acreage has been foreclosed on and the Secretary determines that forgiving the repayments is appropriate in order to provide fair and equitable treatment. This paragraph shall not void the responsibilities of such an owner or operator under the contract if the owner or operator continues or resumes operation, or control, of the contract acreage. On the resumption of operation or control over the contract acreage by the owner or operator, the provisions of the contract in effect on the date of the foreclosure shall apply.

      (4) REVIEW- A determination of the Secretary under this subsection shall be considered to be an adverse decision for purposes of the availability of administrative review of the determination.

    (i) TRANSFER OF INTEREST IN LANDS SUBJECT TO CONTRACT-

      (1) EFFECT OF TRANSFER- Except as provided in paragraph (2), the transfer by an owner or operator subject to a contract of the right and interest of the owner or operator in the contract acreage shall result in the termination of the contract with respect to the acreage, effective on the date of the transfer, unless the transferee of the acreage agrees with the Secretary to assume all obligations of the contract. At the request of the transferee, the Secretary may modify the contract if the modifications are consistent with the objectives of this section as determined by the Secretary.

      (2) EXCEPTION- If an owner or operator who is entitled to a contract payment dies, becomes incompetent, or is otherwise unable to receive the contract payment, the Secretary shall make the payment, in accordance with regulations prescribed by the Secretary.

    (j) PLANTING FLEXIBILITY-

      (1) PERMITTED CROPS- Subject to paragraph (2), any commodity or crop may be planted on contract acreage on a farm.

      (2) LIMITATIONS-

        (A) HAYING AND GRAZING-

          (i) TIME LIMITATIONS- Haying and grazing on land exceeding 15 percent of the contract acreage on a farm as provided in clause (iii) shall be permitted, except during any consecutive 5-month period between April 1 and October 31 that is determined by the State committee established under section 8(b) of the Soil Conservation and Domestic Allotment Act (16 U.S.C. 590h(b)) for a State. In the case of a natural disaster, the Secretary may permit unlimited haying and grazing on the contract acreage of a farm.

          (ii) CONTRACT COMMODITIES- Contract acreage planted to a contract commodity during the crop year may be hayed or grazed without limitation.

          (iii) HAYING AND GRAZING LIMITATION ON PORTION OF CONTRACT ACREAGE- Unlimited haying and grazing shall be permitted on not more than 15 percent of the contract acreage on a farm.

        (B) ALFALFA- Alfalfa may be planted for harvest without limitation on the contract acreage on a farm, except that each contract acre that is planted for harvest to alfalfa in excess of 15 percent of the total contract acreage on a farm shall be ineligible for contract payments.

        (C) FRUITS AND VEGETABLES-

          (i) IN GENERAL- The planting for harvest of fruits and vegetables shall be prohibited on contract acreage, unless there is a history of double cropping of a contract commodity and fruits and vegetables.

          (ii) UNRESTRICTED VEGETABLES- Lentils, mung beans, and dry peas may be planted without limitation on contract acreage.

    (k) CONSERVATION FARM OPTION-

      (1) IN GENERAL- The Secretary shall offer eligible owners and operators with contract acreage under this title on a farm who also have entered into a conservation reserve program contract under subchapter B of chapter 1 of subtitle D of title XII of the Food Security Act of 1985 (7 U.S.C. 3831 et seq.), the option of entering into a conservation farm option contract for a period of 10 years, as an alternative to the market transition payment contract.

      (2) TERMS- Under the conservation farm option contract--

        (A) the Secretary shall provide eligible owners and operators with payments that reflect the Secretary’s estimate of the payments and benefits the eligible owner or operator is expected to receive during the 10-year period under--

          (i) conservation cost-share programs administered by the Secretary;

          (ii) conservation reserve program rental and cost-share payments;

          (iii) market transition payments; and

          (iv) loan programs for contract commodities, oilseeds, and extra long staple cotton; and

        (B) the eligible owner and operator shall--

          (i) forego eligibility to participate in the conservation reserve program, conservation cost-share program payments, and market transition contracts; and

          (ii) comply with a conservation plan for the farm approved by the Secretary that is consistent with the State conservation farm option plan established under paragraph (3).

      (3) STATE CONSERVATION FARM OPTION PLAN- In consultation with the State Technical Committee established under section 1261 of the Food Security Act of 1985 (16 U.S.C. 3801), the Secretary shall establish a plan for each State that is designed to--

        (A) protect wildlife habitat;

        (B) improve water quality; and

        (C) reduce soil erosion.

SEC. 104. NONRECOURSE MARKETING ASSISTANCE LOANS AND LOAN DEFICIENCY PAYMENTS.

    (a) AVAILABILITY OF NONRECOURSE LOANS-

      (1) AVAILABILITY- For each of the 1996 through 2002 crops of each loan commodity, the Secretary shall make available to producers on a farm nonrecourse marketing assistance loans for loan commodities produced on the farm. The loans shall be made under terms and conditions that are prescribed by the Secretary and at the loan rate established under subsection (b) for the loan commodity.

      (2) ELIGIBLE PRODUCTION- The following production shall be eligible for a marketing assistance loan under this section:

        (A) In the case of a marketing assistance loan for a contract commodity, any production by a producer who has entered into a production flexibility contract.

        (B) In the case of a marketing assistance loan for extra long staple cotton and oilseeds, any production.

    (b) LOAN RATES-

      (1) WHEAT-

        (A) LOAN RATE- Subject to subparagraph (B), the loan rate for a marketing assistance loan for wheat shall be--

          (i) not less than 85 percent of the simple average price received by producers of wheat, as determined by the Secretary, during the marketing years for the immediately preceding 5 crops of wheat, excluding the year in which the average price was the highest and the year in which the average price was the lowest in the period; but

          (ii) not more than $2.58 per bushel.

        (B) STOCKS TO USE RATIO ADJUSTMENT- If the Secretary estimates for any marketing year that the ratio of ending stocks of wheat to total use for the marketing year will be--

          (i) equal to or greater than 30 percent, the Secretary may reduce the loan rate for wheat for the corresponding crop by an amount not to exceed 10 percent in any year;

          (ii) less than 30 percent but not less than 15 percent, the Secretary may reduce the loan rate for wheat for the corresponding crop by an amount not to exceed 5 percent in any year; or

          (iii) less than 15 percent, the Secretary may not reduce the loan rate for wheat for the corresponding crop.

        (C) NO EFFECT ON FUTURE YEARS- Any reduction in the loan rate for wheat under subparagraph (B) shall not be considered in determining the loan rate for wheat for subsequent years.

      (2) FEED GRAINS-

        (A) LOAN RATE FOR CORN- Subject to subparagraph (B), the loan rate for a marketing assistance loan for corn shall be--

          (i) not less than 85 percent of the simple average price received by producers of corn, as determined by the Secretary, during the marketing years for the immediately preceding 5 crops of corn, excluding the year in which the average price was the highest and the year in which the average price was the lowest in the period; but

          (ii) not more than $1.89 per bushel.

        (B) STOCKS TO USE RATIO ADJUSTMENT- If the Secretary estimates for any marketing year that the ratio of ending stocks of corn to total use for the marketing year will be--

          (i) equal to or greater than 25 percent, the Secretary may reduce the loan rate for corn for the corresponding crop by an amount not to exceed 10 percent in any year;

          (ii) less than 25 percent but not less than 12.5 percent, the Secretary may reduce the loan rate for corn for the corresponding crop by an amount not to exceed 5 percent in any year; or

          (iii) less than 12.5 percent the Secretary may not reduce the loan rate for corn for the corresponding crop.

        (C) NO EFFECT ON FUTURE YEARS- Any reduction in the loan rate for corn under subparagraph (B) shall not be considered in determining the loan rate for corn for subsequent years.

        (D) OTHER FEED GRAINS- The loan rate for a marketing assistance loan for grain sorghum, barley, and oats, respectively, shall be established at such level as the Secretary determines is fair and reasonable in relation to the rate that loans are made available for corn, taking into consideration the feeding value of the commodity in relation to corn.

      (3) UPLAND COTTON-

        (A) LOAN RATE- Subject to subparagraph (B), the loan rate for a marketing assistance loan for upland cotton shall be established by the Secretary at such loan rate, per pound, as will reflect for the base quality of upland cotton, as determined by the Secretary, at average locations in the United States a rate that is not less than the smaller of--

          (i) 85 percent of the average price (weighted by market and month) of the base quality of cotton as quoted in the designated United States spot markets during 3 years of the 5-year period ending July 31 in the year in which the loan rate is announced, excluding the year in which the average price was the highest and the year in which the average price was the lowest in the period; or

          (ii) 90 percent of the average, for the 15-week period beginning July 1 of the year in which the loan rate is announced, of the 5 lowest-priced growths of the growths quoted for Middling 1 3/32 -inch cotton C.I.F. Northern Europe (adjusted downward by the average difference during the period April 15 through October 15 of the year in which the loan is announced between the average Northern European price quotation of such quality of cotton and the market quotations in the designated United States spot markets for the base quality of upland cotton), as determined by the Secretary.

        (B) LIMITATIONS- The loan rate for a marketing assistance loan for upland cotton shall not be less than $0.50 per pound or more than $0.5192 per pound.

      (4) EXTRA LONG STAPLE COTTON- The loan rate for a marketing assistance loan for extra long staple cotton shall be--

        (A) not less than 85 percent of the simple average price received by producers of extra long staple cotton, as determined by the Secretary, during 3 years of the 5 previous marketing years, excluding the year in which the average price was the highest and the year in which the average price was the lowest in the period; but

        (B) not more than $0.7965 per pound.

      (5) RICE- The loan rate for a marketing assistance loan for rice shall be $6.50 per hundredweight.

      (6) OILSEEDS-

        (A) SOYBEANS- The loan rate for a marketing assistance loan for soybeans shall be--

          (i) not less than 85 percent of the simple average price received by producers of soybeans, as determined by the Secretary, during the marketing years for the immediately preceding 5 crops of soybeans, excluding the year in which the average price was the highest and the year in which the average price was the lowest in the period; but

          (ii) not less than $4.92 or more than $5.26 per bushel.

        (B) SUNFLOWER SEED, CANOLA, RAPESEED, SAFFLOWER, MUSTARD SEED, AND FLAXSEED- The loan rate for a marketing assistance loan for sunflower seed, canola, rapeseed, safflower, mustard seed, and flaxseed, individually, shall be--

          (i) not less than 85 percent of the simple average price received by producers of sunflower seed, individually, as determined by the Secretary, during the marketing years for the immediately preceding 5 crops of sunflower seed, individually, excluding the year in which the average price was the highest and the year in which the average price was the lowest in the period; but

          (ii) not less than $0.087 or more than $0.093 per pound.

        (C) OTHER OILSEEDS- The loan rates for a marketing assistance loan for other oilseeds shall be established at such level as the Secretary determines is fair and reasonable in relation to the loan rate available for soybeans, except in no event shall the rate for the oilseeds (other than cottonseed) be less than the rate established for soybeans on a per-pound basis for the same crop.

    (c) TERM OF LOAN- In the case of each loan commodity (other than upland cotton or extra long staple cotton), a marketing assistance loan under subsection (a) shall have a term of 9 months beginning on the first day of the first month after the month in which the loan is made. A marketing assistance loan for upland cotton or extra long staple cotton shall have a term of 10 months beginning on the first day of the first month after the month in which the loan is made. The Secretary may not extend the term of a marketing assistance loan for any loan commodity.

    (d) REPAYMENT-

      (1) REPAYMENT RATES FOR WHEAT AND FEED GRAINS- The Secretary shall permit a producer to repay a marketing assistance loan under subsection (a) for wheat, corn, grain sorghum, barley, and oats at a level that the Secretary determines will--

        (A) minimize potential loan forfeitures;

        (B) minimize the accumulation of stocks of the commodities by the Federal Government;

        (C) minimize the cost incurred by the Federal Government in storing the commodities; and

        (D) allow the commodities produced in the United States to be marketed freely and competitively, both domestically and internationally.

      (2) REPAYMENT RATES FOR UPLAND COTTON, OILSEEDS, AND RICE- The Secretary shall permit producers to repay a marketing assistance loan under subsection (a) for upland cotton, oilseeds, and rice at a level that is the lesser of--

        (A) the loan rate established for upland cotton, oilseeds, and rice, respectively, under subsection (b); or

        (B) the prevailing world market price for upland cotton, oilseeds, and rice, respectively (adjusted to United States quality and location), as determined by the Secretary.

      (3) REPAYMENT RATES FOR EXTRA LONG STAPLE COTTON- Repayment of a marketing assistance loan for extra long staple cotton shall be at the loan rate established for the commodity under subsection (b), plus interest (as determined by the Secretary).

      (4) PREVAILING WORLD MARKET PRICE- For purposes of paragraph (2)(B) and subsection (f), the Secretary shall prescribe by regulation--

        (A) a formula to determine the prevailing world market price for each loan commodity, adjusted to United States quality and location; and

        (B) a mechanism by which the Secretary shall announce periodically the prevailing world market price for each loan commodity.

      (5) ADJUSTMENT OF PREVAILING WORLD MARKET PRICE FOR UPLAND COTTON-

        (A) IN GENERAL- During the period ending July 31, 2003, the prevailing world market price for upland cotton (adjusted to United States quality and location) established under paragraph (4) shall be further adjusted if--

          (i) the adjusted prevailing world market price is less than 115 percent of the loan rate for upland cotton established under subsection (b), as determined by the Secretary; and

          (ii) the Friday through Thursday average price quotation for the lowest-priced United States growth as quoted for Middling (M) 1 3/32 -inch cotton delivered C.I.F. Northern Europe is greater than the Friday through Thursday average price of the 5 lowest-priced growths of upland cotton, as quoted for Middling (M) 1 3/32 -inch cotton, delivered C.I.F. Northern Europe (referred to in this subsection as the ‘Northern Europe price’).

        (B) FURTHER ADJUSTMENT- Except as provided in subparagraph (C), the adjusted prevailing world market price for upland cotton shall be further adjusted on the basis of some or all of the following data, as available:

          (i) The United States share of world exports.

          (ii) The current level of cotton export sales and cotton export shipments.

          (iii) Other data determined by the Secretary to be relevant in establishing an accurate prevailing world market price for upland cotton (adjusted to United States quality and location).

        (C) LIMITATION ON FURTHER ADJUSTMENT- The adjustment under subparagraph (B) may not exceed the difference between--

          (i) the Friday through Thursday average price for the lowest-priced United States growth as quoted for Middling 1 3/32 -inch cotton delivered C.I.F. Northern Europe; and

          (ii) the Northern Europe price.

    (e) LOAN DEFICIENCY PAYMENTS-

      (1) AVAILABILITY- Except as provided in paragraph (4), the Secretary may make loan deficiency payments available to producers who, although eligible to obtain a marketing assistance loan under subsection (a) with respect to a loan commodity, agree to forgo obtaining the loan for the commodity in return for payments under this subsection.

      (2) COMPUTATION- A loan deficiency payment under this subsection shall be computed by multiplying--

        (A) the loan payment rate determined under paragraph (3) for the loan commodity; by

        (B) the quantity of the loan commodity that the producers on a farm are eligible to place under loan but for which the producers forgo obtaining the loan in return for payments under this subsection.

      (3) LOAN PAYMENT RATE- For purposes of this subsection, the loan payment rate shall be the amount by which--

        (A) the loan rate established under subsection (b) for the loan commodity; exceeds

        (B) the rate at which a loan for the commodity may be repaid under subsection (d).

      (4) EXCEPTION FOR EXTRA LONG STAPLE COTTON- This subsection shall not apply with respect to extra long staple cotton.

    (f) SPECIAL MARKETING LOAN PROVISIONS FOR UPLAND COTTON-

      (1) Cotton user marketing certificates-

        (A) ISSUANCE- Subject to subparagraph (D), during the period ending July 31, 2003, the Secretary shall issue marketing certificates or cash payments to domestic users and exporters for documented purchases by domestic users and sales for export by exporters made in the week following a consecutive 4-week period in which--

          (i) the Friday through Thursday average price quotation for the lowest-priced United States growth, as quoted for Middling (M) 1 3/32 -inch cotton, delivered C.I.F. Northern Europe exceeds the Northern Europe price by more than 1.25 cents per pound; and

          (ii) the prevailing world market price for upland cotton (adjusted to United States quality and location) does not exceed 130 percent of the loan rate for upland cotton established under subsection (b).

        (B) VALUE OF CERTIFICATES OR PAYMENTS- The value of the marketing certificates or cash payments shall be based on the amount of the difference (reduced by 1.25 cents per pound) in the prices during the 4th week of the consecutive 4-week period multiplied by the quantity of upland cotton included in the documented sales.

        (C) ADMINISTRATION OF MARKETING CERTIFICATES-

          (i) REDEMPTION, MARKETING, OR EXCHANGE- The Secretary shall establish procedures for redeeming marketing certificates for cash or marketing or exchange of the certificates for agricultural commodities owned by the Commodity Credit Corporation in such manner, and at such price levels, as the Secretary determines will best effectuate the purposes of cotton user marketing certificates. Any price restrictions that would otherwise apply to the disposition of agricultural commodities by the Commodity Credit Corporation shall not apply to the redemption of certificates under this paragraph.

          (ii) DESIGNATION OF COMMODITIES AND PRODUCTS- To the extent practicable, the Secretary shall permit owners of certificates to designate the commodities and products, including storage sites, the owners would prefer to receive in exchange for certificates. If any certificate is not presented for redemption, marketing, or exchange within a reasonable number of days after the issuance of the certificate (as determined by the Secretary), reasonable costs of storage and other carrying charges, as determined by the Secretary, shall be deducted from the value of the certificate for the period beginning after the reasonable number of days and ending with the date of the presentation of the certificate to the Commodity Credit Corporation.

          (iii) TRANSFERS- Marketing certificates issued to domestic users and exporters of upland cotton may be transferred to other persons in accordance with regulations issued by the Secretary.

        (D) EXCEPTION- The Secretary shall not issue marketing certificates or cash payments under subparagraph (A) if, for the immediately preceding consecutive 10-week period, the Friday through Thursday average price quotation for the lowest priced United States growth, as quoted for Middling (M) 1 3/32 -inch cotton, delivered C.I.F. Northern Europe, adjusted for the value of any certificate issued under this paragraph, exceeds the Northern Europe price by more than 1.25 cents per pound.

        (E) LIMITATION ON EXPENDITURES- Total expenditures under this paragraph shall not exceed $701,000,000 during fiscal years 1996 through 2002.

      (2) Special import quota-

        (A) ESTABLISHMENT- The President shall carry out an import quota program that provides that, during the period ending July 31, 2003, whenever the Secretary determines and announces that for any consecutive 10-week period, the Friday through Thursday average price quotation for the lowest-priced United States growth, as quoted for Middling (M) 1 3/32 -inch cotton, delivered C.I.F. Northern Europe, adjusted for the value of any certificates issued under paragraph (1), exceeds the Northern Europe price by more than 1.25 cents per pound, there shall immediately be in effect a special import quota.

        (B) QUANTITY- The quota shall be equal to 1 week’s consumption of upland cotton by domestic mills at the seasonally adjusted average rate of the most recent 3 months for which data are available.

        (C) APPLICATION- The quota shall apply to upland cotton purchased not later than 90 days after the date of the Secretary’s announcement under subparagraph (A) and entered into the United States not later than 180 days after the date.

        (D) OVERLAP- A special quota period may be established that overlaps any existing quota period if required by subparagraph (A), except that a special quota period may not be established under this paragraph if a quota period has been established under subsection (g).

        (E) PREFERENTIAL TARIFF TREATMENT- The quantity under a special import quota shall be considered to be an in-quota quantity for purposes of--

          (i) section 213(d) of the Caribbean Basin Economic Recovery Act (19 U.S.C. 2703(d));

          (ii) section 204 of the Andean Trade Preference Act (19 U.S.C. 3203);

          (iii) section 503(d) of the Trade Act of 1974 (19 U.S.C. 2463(d)); and

          (iv) General Note 3(a)(iv) to the Harmonized Tariff Schedule.

        (F) DEFINITION- In this paragraph, the term ‘special import quota’ means a quantity of imports that is not subject to the over-quota tariff rate of a tariff-rate quota.

    (g) LIMITED GLOBAL IMPORT QUOTA FOR UPLAND COTTON-

      (1) IN GENERAL- The President shall carry out an import quota program that provides that whenever the Secretary determines and announces that the average price of the base quality of upland cotton, as determined by the Secretary, in the designated spot markets for a month exceeded 130 percent of the average price of such quality of cotton in the markets for the preceding 36 months, notwithstanding any other provision of law, there shall immediately be in effect a limited global import quota subject to the following conditions:

        (A) QUANTITY- The quantity of the quota shall be equal to 21 days of domestic mill consumption of upland cotton at the seasonally adjusted average rate of the most recent 3 months for which data are available.

        (B) QUANTITY IF PRIOR QUOTA- If a quota has been established under this subsection during the preceding 12 months, the quantity of the quota next established under this subsection shall be the smaller of 21 days of domestic mill consumption calculated under subparagraph (A) or the quantity required to increase the supply to 130 percent of the demand.

        (C) PREFERENTIAL TARIFF TREATMENT- The quantity under a limited global import quota shall be considered to be an in-quota quantity for purposes of--

          (i) section 213(d) of the Caribbean Basin Economic Recovery Act (19 U.S.C. 2703(d));

          (ii) section 204 of the Andean Trade Preference Act (19 U.S.C. 3203);

          (iii) section 503(d) of the Trade Act of 1974 (19 U.S.C. 2463(d)); and

          (iv) General Note 3(a)(iv) to the Harmonized Tariff Schedule.

        (D) DEFINITIONS- In this subsection:

          (i) SUPPLY- The term ‘supply’ means, using the latest official data of the Bureau of the Census, the Department of Agriculture, and the Department of the Treasury--

            (I) the carry-over of upland cotton at the beginning of the marketing year (adjusted to 480-pound bales) in which the quota is established;

            (II) production of the current crop; and

            (III) imports to the latest date available during the marketing year.

          (ii) DEMAND- The term ‘demand’ means--

            (I) the average seasonally adjusted annual rate of domestic mill consumption in the most recent 3 months for which data are available; and

            (II) the larger of--

(aa) average exports of upland cotton during the preceding 6 marketing years; or

(bb) cumulative exports of upland cotton plus outstanding export sales for the marketing year in which the quota is established.

          (iii) LIMITED GLOBAL IMPORT QUOTA- The term ‘limited global import quota’ means a quantity of imports that is not subject to the over-quota tariff rate of a tariff-rate quota.

        (E) QUOTA ENTRY PERIOD- When a quota is established under this subsection, cotton may be entered under the quota during the 90-day period beginning on the date the quota is established by the Secretary.

      (2) NO OVERLAP- Notwithstanding paragraph (1), a quota period may not be established that overlaps an existing quota period or a special quota period established under subsection (f)(2).

    (h) SOURCE OF LOANS-

      (1) IN GENERAL- The Secretary shall provide the loans authorized by this section through the Commodity Credit Corporation and other means available to the Secretary.

      (2) PROCESSORS- Whenever any loan or surplus removal operation for any agricultural commodity is carried out through purchases from or loans or payments to processors, the Secretary shall, to the extent practicable, obtain from the processors such assurances as the Secretary considers adequate that the producers of the commodity have received or will receive maximum benefits from the loan or surplus removal operation.

    (i) ADJUSTMENTS OF LOANS-

      (1) IN GENERAL- The Secretary may make appropriate adjustments in the loan levels for any commodity for differences in grade, type, quality, location, and other factors.

      (2) LOAN LEVEL- The adjustments shall, to the maximum extent practicable, be made in such manner that the average loan level for the commodity will, on the basis of the anticipated incidence of the factors, be equal to the level of support determined as provided in this section.

    (j) PERSONAL LIABILITY OF PRODUCERS FOR DEFICIENCIES-

      (1) IN GENERAL- Except as provided in paragraph (2), no producer shall be personally liable for any deficiency arising from the sale of the collateral securing any nonrecourse loan made under this section unless the loan was obtained through a fraudulent representation by the producer.

      (2) LIMITATIONS- Paragraph (1) shall not prevent the Commodity Credit Corporation or the Secretary from requiring a producer to assume liability for--

        (A) a deficiency in the grade, quality, or quantity of a commodity stored on a farm or delivered by the producer;

        (B) a failure to properly care for and preserve a commodity; or

        (C) a failure or refusal to deliver a commodity in accordance with a program established under this section.

      (3) ACQUISITION OF COLLATERAL- The Secretary may include in a contract for a nonrecourse loan made under this section a provision that permits the Commodity Credit Corporation, on and after the maturity of the loan or any extension of the loan, to acquire title to the unredeemed collateral without obligation to pay for any market value that the collateral may have in excess of the loan indebtedness.

      (4) SUGARCANE AND SUGAR BEETS- A security interest obtained by the Commodity Credit Corporation as a result of the execution of a security agreement by the processor of sugarcane or sugar beets shall be superior to all statutory and common law liens on raw cane sugar and refined beet sugar in favor of the producers of sugarcane and sugar beets and all prior recorded and unrecorded liens on the crops of sugarcane and sugar beets from which the sugar was derived.

    (k) COMMODITY CREDIT CORPORATION SALES PRICE RESTRICTIONS-

      (1) IN GENERAL- The Commodity Credit Corporation may sell any commodity owned or controlled by the Corporation at any price that the Secretary determines will maximize returns to the Corporation.

      (2) NONAPPLICATION OF SALES PRICE RESTRICTIONS- Paragraph (1) shall not apply to--

        (A) a sale for a new or byproduct use;

        (B) a sale of peanuts or oilseeds for the extraction of oil;

        (C) a sale for seed or feed if the sale will not substantially impair any loan program;

        (D) a sale of a commodity that has substantially deteriorated in quality or as to which there is a danger of loss or waste through deterioration or spoilage;

        (E) a sale for the purpose of establishing a claim arising out of a contract or against a person who has committed fraud, misrepresentation, or other wrongful act with respect to the commodity;

        (F) a sale for export, as determined by the Corporation; and

        (G) a sale for other than a primary use.

      (3) PRESIDENTIAL DISASTER AREAS-

        (A) IN GENERAL- Notwithstanding paragraph (1), on such terms and conditions as the Secretary may consider in the public interest, the Corporation may make available any commodity or product owned or controlled by the Corporation for use in relieving distress--

          (i) in any area in the United States (including the Virgin Islands) declared by the President to be an acute distress area because of unemployment or other economic cause, if the President finds that the use will not displace or interfere with normal marketing of agricultural commodities; and

          (ii) in connection with any major disaster determined by the President to warrant assistance by the Federal Government under the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5121 et seq.).

        (B) COSTS- Except on a reimbursable basis, the Corporation shall not bear any costs in connection with making a commodity available under subparagraph (A) beyond the cost of the commodity to the Corporation incurred in--

          (i) the storage of the commodity; and

          (ii) the handling and transportation costs in making delivery of the commodity to designated agencies at 1 or more central locations in each State or other area.

      (4) EFFICIENT OPERATIONS- Paragraph (1) shall not apply to the sale of a commodity the disposition of which is desirable in the interest of the effective and efficient conduct of the operations of the Corporation because of the small quantity of the commodity involved, or because of the age, location, or questionable continued storability of the commodity.

SEC. 105. PAYMENT LIMITATIONS.

    (a) IN GENERAL- Section 1001 of the Food Security Act of 1985 (7 U.S.C. 1308) is amended by striking paragraphs (1) through (4) and inserting the following:

      ‘(1) LIMITATION ON PAYMENTS UNDER PRODUCTION FLEXIBILITY CONTRACTS- The total amount of contract payments made under section 103 of the Agricultural Market Transition Act to a person under 1 or more production flexibility contracts during any fiscal year may not exceed $40,000.

      ‘(2) LIMITATION ON MARKETING LOAN GAINS AND LOAN DEFICIENCY PAYMENTS-

        ‘(A) LIMITATION- The total amount of payments specified in subparagraph (B) that a person shall be entitled to receive under section 104 of the Agricultural Market Transition Act for contract commodities and oilseeds during any crop year may not exceed $75,000.

        ‘(B) DESCRIPTION OF PAYMENTS- The payments referred to in subparagraph (A) are the following:

          ‘(i) Any gain realized by a producer from repaying a marketing assistance loan for a crop of any loan commodity at a lower level than the original loan rate established for the commodity under section 104(b) of the Act.

          ‘(ii) Any loan deficiency payment received for a loan commodity under section 104(e) of the Act.’.

    (b) CONFORMING AMENDMENTS-

      (1) Section 1001 of the Food Security Act of 1985 (7 U.S.C. 1308) (as amended by subsection (a)) is amended--

        (A) by redesignating paragraphs (5), (6), and (7) as paragraphs (3), (4), and (5), respectively; and

        (B) in the second sentence of paragraph (3)(A) (as so redesignated), by striking ‘paragraphs (6) and (7)’ and inserting ‘paragraphs (4) and (5)’.

      (2) Section 1305(d) of the Agricultural Reconciliation Act of 1987 (Public Law 100-203; 7 U.S.C. 1308 note) is amended by striking ‘paragraphs (5) through (7) of section 1001, as amended by this subtitle,’ and inserting ‘paragraphs (3) through (5) of section 1001,’.

      (3) Section 1001A of the Food Security Act of 1985 (7 U.S.C. 1308-1(a)(1)) is amended--

        (A) in the first sentence of subsection (a)(1)--

          (i) by striking ‘section 1001(5)(B)(i)’ and inserting ‘section 1001(3)(B)(i)’;

          (ii) by striking ‘under the Agricultural Act of 1949 (7 U.S.C. 1421 et seq.)’; and

          (iii) by striking ‘section 1001(5)(B)(i)(II)’ and inserting ‘section 1001(3)(B)(i)(II)’; and

        (B) in subsection (b)--

          (i) in paragraph (1)--

            (I) by striking ‘under the Agricultural Act of 1949’; and

            (II) by striking ‘section 1001(5)(B)(i)’ and inserting ‘section 1001(3)(B)(i)’; and

          (ii) in paragraph (2)(B), by striking ‘section 1001(5)(B)(i)(II)’ and inserting ‘section 1001(3)(B)(i)(II)’.

      (4) Section 1001C(a) of the Food Security Act of 1985 (7 U.S.C. 1308-3(a)) is amended--

        (A) by striking ‘For each of the 1991 through 1997 crops, any’ and inserting ‘Any’;

        (B) by striking ‘price support program loans, payments, or benefits made available under the Agricultural Act of 1949 (7 U.S.C. 1421 et seq.),’ and inserting ‘loans or payments made available under the Agricultural Market Transition Act’; and

        (C) by striking ‘during the 1989 through 1997 crop years’.

SEC. 106. PEANUT PROGRAM.

    (a) Quota Peanuts-

      (1) AVAILABILITY OF LOANS- The Secretary shall make nonrecourse loans available to producers of quota peanuts.

      (2) LOAN RATE- The national average quota loan rate for quota peanuts shall be $610 per ton.

      (3) INSPECTION, HANDLING, OR STORAGE- The loan amount may not be reduced by the Secretary by any deductions for inspection, handling, or storage.

      (4) LOCATION AND OTHER FACTORS- The Secretary may make adjustments in the loan rate for quota peanuts for location of peanuts and such other factors as are authorized by section 104(i)(1).

    (b) Additional Peanuts-

      (1) IN GENERAL- The Secretary shall make nonrecourse loans available to producers of additional peanuts at such rates as the Secretary finds appropriate, taking into consideration the demand for peanut oil and peanut meal, expected prices of other vegetable oils and protein meals, and the demand for peanuts in foreign markets.

      (2) ANNOUNCEMENT- The Secretary shall announce the loan rate for additional peanuts of each crop not later than February 15 preceding the marketing year for the crop for which the loan rate is being determined.

    (c) Area Marketing Associations-

      (1) Warehouse storage loans-

        (A) IN GENERAL- In carrying out subsections (a) and (b), the Secretary shall make warehouse storage loans available in each of the producing areas (described in section 1446.95 of title 7 of the Code of Federal Regulations (January 1, 1989)) to a designated area marketing association of peanut producers that is selected and approved by the Secretary and that is operated primarily for the purpose of conducting the loan activities. The Secretary may not make warehouse storage loans available to any cooperative that is engaged in operations or activities concerning peanuts other than those operations and activities specified in this section and section 358e of the Agricultural Adjustment Act of 1938 (7 U.S.C. 1359a).

        (B) ADMINISTRATIVE AND SUPERVISORY ACTIVITIES- An area marketing association shall be used in administrative and supervisory activities relating to loans and marketing activities under this section and section 358e of the Agricultural Adjustment Act of 1938 (7 U.S.C. 1359a).

        (C) ASSOCIATION COSTS- Loans made to the association under this paragraph shall include such costs as the area marketing association reasonably may incur in carrying out the responsibilities, operations, and activities of the association under this section and section 358e of the Agricultural Adjustment Act of 1938 (7 U.S.C. 1359a).

      (2) Pools for quota and additional peanuts-

        (A) IN GENERAL- The Secretary shall require that each area marketing association establish pools and maintain complete and accurate records by area and segregation for quota peanuts handled under loan and for additional peanuts placed under loan, except that separate pools shall be established for Valencia peanuts produced in New Mexico.

        (B) ELIGIBILITY TO PARTICIPATE-

          (i) IN GENERAL- Except as provided in clause (ii), in the case of the 1996 and subsequent crops, Valencia peanuts not physically produced in the State of New Mexico shall not be eligible to participate in the pools of the State.

          (ii) EXCEPTION- A resident of the State of New Mexico may enter Valencia peanuts that are produced outside of the State into the pools of the State in a quantity that is not greater than the 1995 crop of the resident that was produced outside the State.

        (C) TYPES OF PEANTUS- Bright hull and dark hull Valencia peanuts shall be considered as separate types for the purpose of establishing the pools.

        (D) NET GAINS- Net gains on peanuts in each pool, unless otherwise approved by the Secretary, shall be distributed only to producers who placed peanuts in the pool and shall be distributed in proportion to the value of the peanuts placed in the pool by each producer. Net gains for peanuts in each pool shall consist of the following:

          (i) QUOTA PEANUTS- For quota peanuts, the net gains over and above the loan indebtedness and other costs or losses incurred on peanuts placed in the pool.

          (ii) ADDITIONAL PEANUTS- For additional peanuts, the net gains over and above the loan indebtedness and other costs or losses incurred on peanuts placed in the pool for additional peanuts.

    (d) LOSSES- Losses in quota area pools shall be covered using the following sources in the following order of priority:

      (1) TRANSFERS FROM ADDITIONAL LOAN POOLS- The proceeds due any producer from any pool shall be reduced by the amount of any loss that is incurred with respect to peanuts transferred from an additional loan pool to a quota loan pool by the producer under section 358-1(b)(8) of the Agricultural Adjustment Act of 1938 (7 U.S.C. 1358-1(b)(8)).

      (2) OTHER PRODUCERS IN SAME POOL- Further losses in an area quota pool shall be offset by reducing the gain of any producer in the pool by the amount of pool gains attributed to the same producer from the sale of additional peanuts for domestic and export edible use.

      (3) OFFSET WITHIN AREA- Further losses in an area quota pool shall be offset by any gains or profits from additional peanuts (other than separate type pools established under subsection (c)(2)(A) for Valencia peanuts produced in New Mexico) owned or controlled by the Commodity Credit Corporation in that area and sold for domestic edible use, in accordance with regulations issued by the Secretary.

      (4) USE OF MARKETING ASSESSMENTS- The Secretary shall use funds collected under subsection (g) (except funds attributable to handlers) to offset further losses in area quota pools. The Secretary shall transfer to the Treasury those funds collected under subsection (g) and available for use under this subsection that the Secretary determines are not required to cover losses in area quota pools.

      (5) CROSS COMPLIANCE- Further losses in area quota pools, other than losses incurred as a result of transfers from additional loan pools to quota loan pools under section 358-1(b)(8) of the Agricultural Adjustment Act of 1938 (7 U.S.C. 1358-1(b)(8)), shall be offset by any gains or profits from quota pools in other production areas (other than separate type pools established under subsection (c)(2)(A) for Valencia peanuts produced in New Mexico) in such manner as the Secretary shall by regulation prescribe.

      (6) OFFSET GENERALLY- If losses in an area quota pool have not been entirely offset under paragraph (3), further losses shall be offset by any gains or profits from additional peanuts (other than separate type pools established under subsection (c)(2)(A) for Valencia peanuts produced in New Mexico) owned or controlled by the Commodity Credit Corporation and sold for domestic edible use, in accordance with regulations issued by the Secretary.

      (7) INCREASED ASSESSMENTS- If use of the authorities provided in the preceding paragraphs is not sufficient to cover losses in an area quota pool, the Secretary shall increase the marketing assessment established under subsection (g) by such an amount as the Secretary considers necessary to cover the losses. The increased assessment shall apply only to quota peanuts in the production area covered by the pool. Amounts collected under subsection (g) as a result of the increased assessment shall be retained by the Secretary to cover losses in that pool.

    (e) DISAPPROVAL OF QUOTAS- Notwithstanding any other provision of law, no loan for quota peanuts may be made available by the Secretary for any crop of peanuts with respect to which poundage quotas have been disapproved by producers, as provided for in section 358-1(d) of the Agricultural Adjustment Act of 1938 (7 U.S.C. 1358-1(d)).

    (f) Quality Improvement-

      (1) IN GENERAL- With respect to peanuts under loan, the Secretary shall--

        (A) promote the crushing of peanuts at a greater risk of deterioration before peanuts of a lesser risk of deterioration;

        (B) ensure that all Commodity Credit Corporation inventories of peanuts sold for domestic edible use must be shown to have been officially inspected by licensed Department inspectors both as farmer stock and shelled or cleaned in-shell peanuts;

        (C) continue to endeavor to operate the peanut program so as to improve the quality of domestic peanuts and ensure the coordination of activities under the Peanut Administrative Committee established under Marketing Agreement No. 146, regulating the quality of domestically produced peanuts (under the Agricultural Adjustment Act (7 U.S.C. 601 et seq.), reenacted with amendments by the Agricultural Marketing Agreement Act of 1937); and

        (D) ensure that any changes made in the peanut program as a result of this subsection requiring additional production or handling at the farm level shall be reflected as an upward adjustment in the Department loan schedule.

      (2) EXPORTS AND OTHER PEANUTS- The Secretary shall require that all peanuts in the domestic and export markets fully comply with all quality standards under Marketing Agreement No. 146.

    (g) MARKETING ASSESSMENT-

      (1) IN GENERAL- The Secretary shall provide for a nonrefundable marketing assessment. The assessment shall be made on a per pound basis in an amount equal to 1.1 percent for each of the 1994 and 1995 crops, 1.15 percent for the 1996 crop, and 1.2 percent for each of the 1997 through 2002 crops, of the national average quota or additional peanut loan rate for the applicable crop.

      (2) FIRST PURCHASERS-

        (A) IN GENERAL- Except as provided under paragraphs (3) and (4), the first purchaser of peanuts shall--

          (i) collect from the producer a marketing assessment equal to the quantity of peanuts acquired multiplied by--

            (I) in the case of each of the 1994 and 1995 crops, .55 percent of the applicable national average loan rate;

            (II) in the case of the 1996 crop, .6 percent of the applicable national average loan rate; and

            (III) in the case of each of the 1997 through 2002 crops, .65 percent of the applicable national average loan rate;

          (ii) pay, in addition to the amount collected under clause (i), a marketing assessment in an amount equal to the quantity of peanuts acquired multiplied by .55 percent of the applicable national average loan rate; and

          (iii) remit the amounts required under clauses (i) and (ii) to the Commodity Credit Corporation in a manner specified by the Secretary.

        (B) DEFINITION OF FIRST PURCHASER- In this subsection, the term ‘first purchaser’ means a person acquiring peanuts from a producer except that in the case of peanuts forfeited by a producer to the Commodity Credit Corporation, the term means the person acquiring the peanuts from the Commodity Credit Corporation.

      (3) OTHER PRIVATE MARKETINGS- In the case of a private marketing by a producer directly to a consumer through a retail or wholesale outlet or in the case of a marketing by the producer outside of the continental United States, the producer shall be responsible for the full amount of the assessment and shall remit the assessment by such time as is specified by the Secretary.

      (4) LOAN PEANUTS- In the case of peanuts that are pledged as collateral for a loan made under this section, 1/2 of the assessment shall be deducted from the proceeds of the loan. The remainder of the assessment shall be paid by the first purchaser of the peanuts. For purposes of computing net gains on peanuts under this section, the reduction in loan proceeds shall be treated as having been paid to the producer.

      (5) PENALTIES- If any person fails to collect or remit the reduction required by this subsection or fails to comply with the requirements for recordkeeping or otherwise as are required by the Secretary to carry out this subsection, the person shall be liable to the Secretary for a civil penalty up to an amount determined by multiplying--

        (A) the quantity of peanuts involved in the violation; by

        (B) the national average quota peanut rate for the applicable crop year.

      (6) ENFORCEMENT- The Secretary may enforce this subsection in the courts of the United States.

    (h) CROPS- Subsections (a) through (f) shall be effective only for the 1996 through 2002 crops of peanuts.

    (i) MARKETING QUOTAS-

      (1) IN GENERAL- Part VI of subtitle B of title III of the Agricultural Adjustment Act of 1938 is amended--

        (A) in section 358-1 (7 U.S.C. 1358-1)--

          (i) in the section heading, by striking ‘1991 through 1997 crops of’;

          (ii) in subsections (a)(1), (b)(1)(B), (b)(2)(A), (b)(2)(C), and (b)(3)(A), by striking ‘of the 1991 through 1997 marketing years’ each place it appears and inserting ‘marketing year’;

          (iii) in subsection (a)(3), by striking ‘1990’ and inserting ‘1990, for the 1991 through 1995 marketing years, and 1995, for the 1996 through 2002 marketing years’;

          (iv) in subsection (b)(1)(A)--

            (I) by striking ‘each of the 1991 through 1997 marketing years’ and inserting ‘each marketing year’; and

            (II) in clause (i), by inserting before the semicolon the following: ‘, in the case of the 1991 through 1995 marketing years, and the 1995 marketing year, in the case of the 1996 through 2002 marketing years’;

          (v) in subsection (b)(1), by adding at the end the following:

        ‘(D) CERTAIN FARMS INELIGIBLE FOR QUOTA- Effective beginning with the 1997 marketing year, the Secretary shall not establish a farm poundage quota under subparagraph (A) for a farm owned or controlled by--

          ‘(i) a municipality, airport authority, school, college, refuge, or other public entity (other than a university used for research purposes); or

          ‘(ii) a person who is not a producer and resides in another State.’;

          (vi) in subsection (b)(2), by adding at the end the following:

        ‘(E) TRANSFER OF QUOTA FROM INELIGIBLE FARMS- Any farm poundage quota held at the end of the 1996 marketing year by a farm described in paragraph (1)(D) shall be allocated to other farms in the same State on such basis as the Secretary may by regulation prescribe.’; and

          (vii) in subsection (f), by striking ‘1997’ and inserting ‘2002’;

        (B) in section 358b (7 U.S.C. 1358b)--

          (i) in the section heading, by striking ‘1991 through 1995 crops of’; and

          (ii) in subsection (c), by striking ‘1995’ and inserting ‘2002’;

        (C) in section 358c(d) (7 U.S.C. 1358c(d)), by striking ‘1995’ and inserting ‘2002’; and

        (D) in section 358e (7 U.S.C. 1359a)--

          (i) in the section heading, by striking ‘for 1991 through 1997 crops of peanuts’; and

          (ii) in subsection (i), by striking ‘1997’ and inserting ‘2002’.

      (2) ELIMINATION OF QUOTA FLOOR- Section 358-1(a)(1) of the Act (7 U.S.C. 1358-1(a)(1)) is amended by striking the second sentence.

      (3) TEMPORARY QUOTA ALLOCATION- Section 358-1 of the Act (7 U.S.C. 1358-1) is amended--

        (A) in subsection (a)(1), by striking ‘domestic edible, seed,’ and inserting ‘domestic edible use’;

        (B) in subsection (b)(2)--

          (i) in subparagraph (A), by striking ‘subparagraph (B) and subject to’; and

          (ii) by striking subparagraph (B) and inserting the following:

        ‘(B) TEMPORARY QUOTA ALLOCATION-

          ‘(i) ALLOCATION RELATED TO SEED PEANUTS- Temporary allocation of quota pounds for the marketing year only in which the crop is planted shall be made to producers for each of the 1996 through 2002 marketing years as provided in this subparagraph.

          ‘(ii) QUANTITY- The temporary quota allocation shall be equal to the pounds of seed peanuts planted on the farm, as may be adjusted under regulations prescribed by the Secretary.

          ‘(iii) ADDITIONAL QUOTA- The temporary allocation of quota pounds under this paragraph shall be in addition to the farm poundage quota otherwise established under this subsection and shall be credited, for the applicable marketing year only, in total to the producer of the peanuts on the farm in a manner prescribed by the Secretary.

          ‘(iv) EFFECT OF OTHER REQUIREMENTS- Nothing in this section alters or changes the requirements regarding the use of quota and additional peanuts established by section 358e(b).’; and

        (C) in subsection (e)(3), strike ‘and seed and use on a farm’.

      (4) UNDERMARKETINGS- Part VI of subtitle B of title III of the Act is amended--

        (A) in section 358-1(b) (7 U.S.C. 1358-1(b))--

          (i) in paragraph (1)(B), by striking ‘including--’ and clauses (i) and (ii) and inserting ‘including any increases resulting from the allocation of quotas voluntarily released for 1 year under paragraph (7).’;

          (ii) in paragraph (3)(B), by striking ‘include--’ and clauses (i) and (ii) and inserting ‘include any increase resulting from the allocation of quotas voluntarily released for 1 year under paragraph (7).’; and

          (iii) by striking paragraphs (8) and (9); and

        (B) in section 358b(a) (7 U.S.C. 1358b(a))--

          (i) in paragraph (1), by striking ‘(including any applicable under marketings)’ both places it appears;

          (ii) in paragraph (1)(A), by striking ‘of undermarketings and’;

          (iii) in paragraph (2), by striking ‘(including any applicable under marketings)’; and

          (iv) in paragraph (3), by striking ‘(including any applicable undermarketings)’.

      (5) DISASTER TRANSFERS- Section 358-1(b) of the Act (7 U.S.C. 1358-1(b)), as amended by paragraph (4)(A)(iii), is further amended by adding at the end the following:

      ‘(8) DISASTER TRANSFERS-

        ‘(A) IN GENERAL- Except as provided in subparagraph (B), additional peanuts produced on a farm from which the quota poundage was not harvested and marketed because of drought, flood, or any other natural disaster, or any other condition beyond the control of the producer, may be transferred to the quota loan pool for pricing purposes on such basis as the Secretary shall by regulation provide.

        ‘(B) LIMITATION- The poundage of peanuts transferred under subparagraph (A) shall not exceed the difference between--

          ‘(i) the total quantity of peanuts meeting quality requirements for domestic edible use, as determined by the Secretary, marketed from the farm; and

          ‘(ii) the total farm poundage quota, excluding quota pounds transferred to the farm in the fall.

        ‘(C) SUPPORT RATE- Peanuts transferred under this paragraph shall be supported at not more than 70 percent of the quota support rate for the marketing years in which the transfers occur. The transfers for a farm shall not exceed 25 percent of the total farm quota pounds, excluding pounds transferred in the fall.’.

SEC. 107. SUGAR PROGRAM.

    (a) SUGARCANE- The Secretary shall make loans available to processors of domestically grown sugarcane at a rate equal to 18 cents per pound for raw cane sugar.

    (b) SUGAR BEETS- The Secretary shall make loans available to processors of domestically grown sugar beets at a rate equal to 22.9 cents per pound for refined beet sugar.

    (c) TERM OF LOANS-

      (1) IN GENERAL- Loans under this section during any fiscal year shall be made available not earlier than the beginning of the fiscal year and shall mature at the earlier of--

        (A) the end of 9 months; or

        (B) the end of the fiscal year.

      (2) SUPPLEMENTAL LOANS- In the case of loans made under this section in the last 3 months of a fiscal year, the processor may repledge the sugar as collateral for a second loan in the subsequent fiscal year, except that the second loan shall--

        (A) be made at the loan rate in effect at the time the second loan is made; and

        (B) mature in 9 months less the quantity of time that the first loan was in effect.

    (d) LOAN TYPE; PROCESSOR ASSURANCES-

      (1) RECOURSE LOANS- Subject to paragraph (2), the Secretary shall carry out this section through the use of recourse loans.

      (2) NONRECOURSE LOANS- During any fiscal year in which the tariff rate quota for imports of sugar into the United States is established at, or is increased to, a level in excess of 1,500,000 short tons raw value, the Secretary shall carry out this section by making available nonrecourse loans. Any recourse loan previously made available by the Secretary under this section during the fiscal year shall be changed by the Secretary into a nonrecourse loan.

      (3) PROCESSOR ASSURANCES- If the Secretary is required under paragraph (2) to make nonrecourse loans available during a fiscal year or to change recourse loans into nonrecourse loans, the Secretary shall obtain from each processor that receives a loan under this section such assurances as the Secretary considers adequate to ensure that the processor will provide payments to producers that are proportional to the value of the loan received by the processor for sugar beets and sugarcane delivered by producers served by the processor. The Secretary may establish appropriate minimum payments for purposes of this paragraph.

    (e) Marketing Assessment-

      (1) SUGARCANE- Effective for marketings of raw cane sugar during the 1996 through 2003 fiscal years, the first processor of sugarcane shall remit to the Commodity Credit Corporation a nonrefundable marketing assessment in an amount equal to--

        (A) in the case of marketings during fiscal year 1996, 1.1 percent of the loan rate established under subsection (a) per pound of raw cane sugar, processed by the processor from domestically produced sugarcane or sugarcane molasses, that has been marketed (including the transfer or delivery of the sugar to a refinery for further processing or marketing); and

        (B) in the case of marketings during each of fiscal years 1997 through 2003, 1.375 percent of the loan rate established under subsection (a) per pound of raw cane sugar, processed by the processor from domestically produced sugarcane or sugarcane molasses, that has been marketed (including the transfer or delivery of the sugar to a refinery for further processing or marketing).

      (2) SUGAR BEETS- Effective for marketings of beet sugar during the 1996 through 2003 fiscal years, the first processor of sugar beets shall remit to the Commodity Credit Corporation a nonrefundable marketing assessment in an amount equal to--

        (A) in the case of marketings during fiscal year 1996, 1.1794 percent of the loan rate established under subsection (a) per pound of beet sugar, processed by the processor from domestically produced sugar beets or sugar beet molasses, that has been marketed; and

        (B) in the case of marketings during each of fiscal years 1997 through 2003, 1.47425 percent of the loan rate established under subsection (a) per pound of beet sugar, processed by the processor from domestically produced sugar beets or sugar beet molasses, that has been marketed.

      (3) COLLECTION-

        (A) TIMING- A marketing assessment required under this subsection shall be collected on a monthly basis and shall be remitted to the Commodity Credit Corporation not later than 30 days after the end of each month. Any cane sugar or beet sugar processed during a fiscal year that has not been marketed by September 30 of the year shall be subject to assessment on that date. The sugar shall not be subject to a second assessment at the time that it is marketed.

        (B) MANNER- Subject to subparagraph (A), marketing assessments shall be collected under this subsection in the manner prescribed by the Secretary and shall be nonrefundable.

      (4) PENALTIES- If any person fails to remit the assessment required by this subsection or fails to comply with such requirements for recordkeeping or otherwise as are required by the Secretary to carry out this subsection, the person shall be liable to the Secretary for a civil penalty up to an amount determined by multiplying--

        (A) the quantity of cane sugar or beet sugar involved in the violation; by

        (B) the loan rate for the applicable crop of sugarcane or sugar beets.

      (5) ENFORCEMENT- The Secretary may enforce this subsection in a court of the United States.

    (f) FORFEITURE PENALTY-

      (1) IN GENERAL- A penalty shall be assessed on the forfeiture of any sugar pledged as collateral for a nonrecourse loan under this section.

      (2) CANE SUGAR- The penalty for cane sugar shall be 1 cent per pound.

      (3) BEET SUGAR- The penalty for beet sugar shall bear the same relation to the penalty for cane sugar as the marketing assessment for sugar beets bears to the marketing assessment for sugarcane.

      (4) EFFECT OF FORFEITURE- Any payments owed producers by a processor that forfeits of any sugar pledged as collateral for a nonrecourse loan shall be reduced in proportion to the loan forfeiture penalty incurred by the processor.

    (g) INFORMATION REPORTING-

      (1) DUTY OF PROCESSORS AND REFINERS TO REPORT- A sugarcane processor, cane sugar refiner, and sugar beet processor shall furnish the Secretary, on a monthly basis, such information as the Secretary may require to administer sugar programs, including the quantity of purchases of sugarcane, sugar beets, and sugar, and production, importation, distribution, and stock levels of sugar.

      (2) PENALTY- Any person willfully failing or refusing to furnish the information, or furnishing willfully any false information, shall be subject to a civil penalty of not more than $10,000 for each such violation.

      (3) MONTHLY REPORTS- Taking into consideration the information received under paragraph (1), the Secretary shall publish on a monthly basis composite data on production, imports, distribution, and stock levels of sugar.

    (h) CROPS- This section shall be effective only for the 1996 through 2002 crops of sugar beets and sugarcane.

SEC. 108. ADMINISTRATION.

    (a) COMMODITY CREDIT CORPORATION-

      (1) USE OF CORPORATION- The Secretary shall carry out this title through the Commodity Credit Corporation.

      (2) SALARIES AND EXPENSES- No funds of the Corporation shall be used for any salary or expense of any officer or employee of the Department of Agriculture.

    (b) DETERMINATIONS BY SECRETARY- A determination made by the Secretary under this title or the Agricultural Adjustment Act of 1938 (7 U.S.C. 1281 et seq.) shall be final and conclusive.

    (c) REGULATIONS- The Secretary may issue such regulations as the Secretary determines necessary to carry out this title.

SEC. 109. SUSPENSION AND REPEAL OF PERMANENT AUTHORITIES.

    (a) AGRICULTURAL ADJUSTMENT ACT OF 1938-

      (1) IN GENERAL- The following provisions of the Agricultural Adjustment Act of 1938 shall not be applicable to the 1996 through 2002 crops:

        (A) Parts II through V of subtitle B of title III (7 U.S.C. 1326-1351).

        (B) Subsections (a) through (j) of section 358 (7 U.S.C. 1358).

        (C) Subsections (a) through (h) of section 358a (7 U.S.C. 1358a).

        (D) Subsections (a), (b), (d), and (e) of section 358d (7 U.S.C. 1359).

        (E) Part VII of subtitle B of title III (7 U.S.C. 1359aa-1359jj).

        (F) In the case of peanuts, part I of subtitle C of title III (7 U.S.C. 1361-1368).

        (G) In the case of upland cotton, section 377 (7 U.S.C. 1377).

        (H) Subtitle D of title III (7 U.S.C. 1379a-1379j).

        (I) Title IV (7 U.S.C. 1401-1407).

      (2) REPORTS AND RECORDS- Effective only for the 1996 through 2002 crops of peanuts, the first sentence of section 373(a) of the Agricultural Adjustment Act of 1938 (7 U.S.C. 1373(a)) is amended by inserting before ‘all brokers and dealers in peanuts’ the following: ‘all producers engaged in the production of peanuts,’.

    (b) AGRICULTURAL ACT OF 1949-

      (1) SUSPENSIONS- The following provisions of the Agricultural Act of 1949 shall not be applicable to the 1996 through 2002 crops:

        (A) Section 101 (7 U.S.C. 1441).

        (B) Section 103(a) (7 U.S.C. 1444(a)).

        (C) Section 105 (7 U.S.C. 1444b).

        (D) Section 107 (7 U.S.C. 1445a).

        (E) Section 110 (7 U.S.C. 1445e).

        (F) Section 112 (7 U.S.C. 1445g).

        (G) Section 115 (7 U.S.C. 1445k).

        (H) Title III (7 U.S.C. 1447-1449).

        (I) Title IV (7 U.S.C. 1421-1433d), other than sections 404, 406, 412, 416, and 427 (7 U.S.C. 1424, 1426, 1429, 1431, and 1433f).

        (J) Title V (7 U.S.C. 1461-1469).

        (K) Title VI (7 U.S.C. 1471-1471j).

      (2) REPEALS- The following provisions of the Agricultural Act of 1949 are repealed:

        (A) Section 103B (7 U.S.C. 1444-2).

        (B) Section 108B (7 U.S.C. 1445c-3).

        (C) Section 113 (7 U.S.C. 1445h).

        (D) Section 114(b) (7 U.S.C. 1445j(b)).

        (E) Sections 205, 206, and 207 (7 U.S.C. 1446f, 1446g, and 1446h).

        (F) Section 406 (7 U.S.C. 1426).

    (c) SUSPENSION OF CERTAIN QUOTA PROVISIONS- The joint resolution entitled ‘A joint resolution relating to corn and wheat marketing quotas under the Agricultural Adjustment Act of 1938, as amended’, approved May 26, 1941 (7 U.S.C. 1330 and 1340), shall not be applicable to the crops of wheat planted for harvest in the calendar years 1996 through 2002.

SEC. 110. EFFECT OF AMENDMENTS.

    (a) EFFECT ON PRIOR CROPS- Except as otherwise specifically provided and notwithstanding any other provision of law, this title and the amendments made by this title shall not affect the authority of the Secretary to carry out a price support or production adjustment program for any of the 1991 through 1995 crops of an agricultural commodity established under a provision of law in effect immediately before the date of the enactment of this Act.

    (b) LIABILITY- A provision of this title or an amendment made by this title shall not affect the liability of any person under any provision of law as in effect before the date of the enactment of this Act.

TITLE II--AGRICULTURAL TRADE

Subtitle A--Amendments to Agricultural Trade Development and Assistance Act of 1954 and Related Statutes

SEC. 201. FOOD AID TO DEVELOPING COUNTRIES.

    (a) IN GENERAL- Section 3 of the Agricultural Trade Development and Assistance Act of 1954 (7 U.S.C. 1691a) is amended to read as follows:

‘SEC. 3. FOOD AID TO DEVELOPING COUNTRIES.

    ‘(a) POLICY- In light of the Uruguay Round Agreement on Agriculture and the Ministerial Decision on Measures Concerning the Possible Negative Effects of the Reform Program on Least-Developed and Net-Food Importing Developing Countries, the United States reaffirms the commitment of the United States to providing food aid to developing countries.

    ‘(b) SENSE OF CONGRESS- It is the sense of Congress that--

      ‘(1) the President should initiate consultations with other donor nations to consider appropriate levels of food aid commitments to meet the legitimate needs of developing countries; and

      ‘(2) the United States should increase its contribution of bona fide food assistance to developing countries consistent with the Agreement on Agriculture.’.

    (b) CONFORMING AMENDMENT- Section 411 of the Uruguay Round Agreements Act (19 U.S.C. 3611) is amended by striking subsection (e).

SEC. 202. TRADE AND DEVELOPMENT ASSISTANCE.

    Section 101 of the Agricultural Trade Development and Assistance Act of 1954 (7 U.S.C. 1701) is amended--

      (1) by striking ‘developing countries’ each place it appears and inserting ‘developing countries and private entities’; and

      (2) in subsection (b), by inserting ‘and entities’ before the period at the end.

SEC. 203. AGREEMENTS REGARDING ELIGIBLE COUNTRIES AND PRIVATE ENTITIES.

    Section 102 of the Agricultural Trade Development and Assistance Act of 1954 (7 U.S.C. 1702) is amended to read as follows:

‘SEC. 102. AGREEMENTS REGARDING ELIGIBLE COUNTRIES AND PRIVATE ENTITIES.

    ‘(a) PRIORITY- In selecting agreements to be entered into under this title, the Secretary shall give priority to agreements providing for the export of agricultural commodities to developing countries that--

      ‘(1) have the demonstrated potential to become commercial markets for competitively priced United States agricultural commodities;

      ‘(2) are undertaking measures for economic development purposes to improve food security and agricultural development, alleviate poverty, and promote broad-based equitable and sustainable development; and

      ‘(3) demonstrate the greatest need for food.

    ‘(b) PRIVATE ENTITIES- An agreement entered into under this title with a private entity shall require such security, or such other provisions as the Secretary determines necessary, to provide reasonable and adequate assurance of repayment of the financing extended to the private entity.

    ‘(c) AGRICULTURAL MARKET DEVELOPMENT PLAN-

      ‘(1) DEFINITION OF AGRICULTURAL TRADE ORGANIZATION- In this subsection, the term ‘agricultural trade organization’ means a United States agricultural trade organization that promotes the export and sale of a United States agricultural commodity and that does not stand to profit directly from the specific sale of the commodity.

      ‘(2) PLAN- The Secretary shall consider a developing country for which an agricultural market development plan has been approved under this subsection to have the demonstrated potential to become a commercial market for competitively priced United States agricultural commodities for the purpose of granting a priority under subsection (a).

      ‘(3) REQUIREMENTS-

        ‘(A) IN GENERAL- To be approved by the Secretary, an agricultural market development plan shall--

          ‘(i) be submitted by a developing country or private entity, in conjunction with an agricultural trade organization;

          ‘(ii) describe a project or program for the development and expansion of a United States agricultural commodity market in a developing country, and the economic development of the country, using funds derived from the sale of agricultural commodities received under an agreement described in section 101;

          ‘(iii) provide for any matching funds that are required by the Secretary for the project or program;

          ‘(iv) provide for a results-oriented means of measuring the success of the project or program; and

          ‘(v) provide for graduation to the use of non-Federal funds to carry out the project or program, consistent with requirements established by the Secretary.

        ‘(B) AGRICULTURAL TRADE ORGANIZATION- The project or program shall be designed and carried out by the agricultural trade organization.

        ‘(C) ADDITIONAL REQUIREMENTS- An agricultural market development plan shall contain such additional requirements as are determined necessary by the Secretary.

      ‘(4) ADMINISTRATIVE COSTS-

        ‘(A) IN GENERAL- The Secretary shall make funds made available to carry out this title available for the reimbursement of administrative expenses incurred by agricultural trade organizations in developing, implementing, and administering agricultural market development plans, subject to such requirements and in such amounts as the Secretary considers appropriate.

        ‘(B) DURATION- The funds shall be made available to agricultural trade organizations for the duration of the applicable agricultural market development plan.

        ‘(C) TERMINATION- The Secretary may terminate assistance made available under this subsection if the agricultural trade organization is not carrying out the approved agricultural market development plan.’.

SEC. 204. TERMS AND CONDITIONS OF SALES.

    Section 103 of the Agricultural Trade Development and Assistance Act of 1954 (7 U.S.C. 1703) is amended--

      (1) in subsection (a)(2)(A)--

        (A) by striking ‘a recipient country to make’; and

        (B) by striking ‘such country’ and inserting ‘the appropriate country’;

      (2) in subsection (c), by striking ‘less than 10 nor’; and

      (3) in subsection (d)--

        (A) by striking ‘recipient country’ and inserting ‘developing country or private entity’; and

        (B) by striking ‘7’ and inserting ‘5’.

SEC. 205. USE OF LOCAL CURRENCY PAYMENT.

    Section 104 of the Agricultural Trade Development and Assistance Act of 1954 (7 U.S.C. 1704) is amended--

      (1) in subsection (a), by striking ‘recipient country’ and inserting ‘developing country or private entity’; and

      (2) in subsection (c)--

        (A) by striking ‘recipient country’ each place it appears and inserting ‘appropriate developing country’; and

        (B) in paragraph (3), by striking ‘recipient countries’ and inserting ‘appropriate developing countries’.

SEC. 206. VALUE-ADDED FOODS.

    Section 105 of the Agricultural Trade Development and Assistance Act of 1954 (7 U.S.C. 1705) is repealed.

SEC. 207. ELIGIBLE ORGANIZATIONS.

    (a) IN GENERAL- Section 202 of the Agricultural Trade Development and Assistance Act of 1954 (7 U.S.C. 1722) is amended--

      (1) by striking subsection (b) and inserting the following:

    ‘(b) NONEMERGENCY ASSISTANCE-

      ‘(1) IN GENERAL- The Administrator may provide agricultural commodities for nonemergency assistance under this title through eligible organizations (as described in subsection (d)) that have entered into an agreement with the Administrator to use the commodities in accordance with this title.

      ‘(2) LIMITATION- The Administrator may not deny a request for funds submitted under this subsection because the program for which the funds are requested--

        ‘(A) would be carried out by the eligible organization in a foreign country in which the Agency for International Development does not have a mission, office, or other presence; or

        ‘(B) is not part of a development plan for the country prepared by the Agency.’; and

      (2) in subsection (e)--

        (A) in the subsection heading, by striking ‘PRIVATE VOLUNTARY ORGANIZATIONS AND COOPERATIVES’ and inserting ‘ELIGIBLE ORGANIZATIONS’;

        (B) in paragraph (1)--

          (i) by striking ‘$13,500,000’ and inserting ‘$28,000,000’; and

          (ii) by striking ‘private voluntary organizations and cooperatives to assist such organizations and cooperatives’ and inserting ‘eligible organizations described in subsection (d), to assist the organizations’;

        (C) by striking paragraph (2) and inserting the following:

      ‘(2) REQUEST FOR FUNDS- To receive funds made available under paragraph (1), a private voluntary organization or cooperative shall submit a request for the funds that is subject to approval by the Administrator.’; and

        (D) in paragraph (3), by striking ‘a private voluntary organization or cooperative, the Administrator may provide assistance to that organization or cooperative’ and inserting ‘an eligible organization, the Administrator may provide assistance to the eligible organization’.

    (b) CONFORMING AMENDMENTS- Section 207 of the Agricultural Trade Development and Assistance Act of 1954 (7 U.S.C. 1726a) is amended--

      (1) in subsection (a), by striking ‘a private voluntary organization or cooperative’ and inserting ‘an eligible organization’; and

      (2) in subsection (b)--

        (A) in paragraph (1), by striking ‘private voluntary organizations and cooperatives’ and inserting ‘eligible organizations’; and

        (B) in paragraph (2), by striking ‘organizations, cooperatives,’ and inserting ‘eligible organizations’.

SEC. 208. GENERATION AND USE OF FOREIGN CURRENCIES.

    Section 203 of the Agricultural Trade Development and Assistance Act of 1954 (7 U.S.C. 1723) is amended--

      (1) in subsection (a), by inserting ‘, or in a country in the same region,’ after ‘in the recipient country’;

      (2) in subsection (b)--

        (A) by inserting ‘or in countries in the same region,’ after ‘in recipient countries,’; and

        (B) by striking ‘10 percent’ and inserting ‘15 percent’;

      (3) in subsection (c), by inserting ‘or in a country in the same region,’ after ‘in the recipient country,’; and

      (4) in subsection (d)(2), by inserting ‘or within a country in the same region’ after ‘within the recipient country’.

SEC. 209. GENERAL LEVELS OF ASSISTANCE UNDER PUBLIC LAW 480.

    Section 204(a) of the Agricultural Trade Development and Assistance Act of 1954 (7 U.S.C. 1724(a)) is amended--

      (1) in paragraph (1), by striking ‘amount that’ and all that follows through the period at the end and inserting ‘amount that for each of fiscal years 1996 through 2002 is not less than 2,025,000 metric tons.’;

      (2) in paragraph (2), by striking ‘amount that’ and all that follows through the period at the end and inserting ‘amount that for each of fiscal years 1996 through 2002 is not less than 1,550,000 metric tons.’; and

      (3) in paragraph (3), by adding at the end the following: ‘No waiver shall be made before the beginning of the applicable fiscal year.’.

SEC. 210. FOOD AID CONSULTATIVE GROUP.

    Section 205 of the Agricultural Trade Development and Assistance Act of 1954 (7 U.S.C. 1725) is amended--

      (1) in subsection (a), by striking ‘private voluntary organizations, cooperatives and indigenous non-governmental organizations’ and inserting ‘eligible organizations described in section 202(d)(1)’;

      (2) in subsection (b)--

        (A) in paragraph (2), by striking ‘for International Affairs and Commodity Programs’ and inserting ‘of Agriculture for Farm and Foreign Agricultural Services’;

        (B) in paragraph (4), by striking ‘and’ at the end;

        (C) in paragraph (5), by striking the period at the end and inserting ‘; and’; and

        (D) by adding at the end the following:

      ‘(6) representatives from agricultural producer groups in the United States.’;

      (3) in the second sentence of subsection (d), by inserting ‘(but at least twice per year)’ after ‘when appropriate’; and

      (4) in subsection (f), by striking ‘1995’ and inserting ‘2002’.

SEC. 211. SUPPORT OF NONGOVERNMENTAL ORGANIZATIONS.

    (a) IN GENERAL- Section 306(b) of the Agricultural Trade Development and Assistance Act of 1954 (7 U.S.C. 1727e(b)) is amended--

      (1) in the subsection heading, by striking ‘INDIGENOUS NON-GOVERNMENTAL’ and inserting ‘NONGOVERNMENTAL’; and

      (2) by striking ‘utilization of indigenous’ and inserting ‘utilization of’.

    (b) CONFORMING AMENDMENT- Section 402 of the Agricultural Trade Development and Assistance Act of 1954 (7 U.S.C. 1732) is amended by striking paragraph (6) and inserting the following:

      ‘(6) NONGOVERNMENTAL ORGANIZATION- The term ‘nongovernmental organization’ means an organization that works at the local level to solve development problems in a foreign country in which the organization is located, except that the term does not include an organization that is primarily an agency or instrumentality of the government of the foreign country.’.

SEC. 212. COMMODITY DETERMINATIONS.

    Section 401 of the Agricultural Trade Development and Assistance Act of 1954 (7 U.S.C. 1731) is amended--

      (1) by striking subsections (a) through (d) and inserting the following:

    ‘(a) AVAILABILITY OF COMMODITIES- No agricultural commodity shall be available for disposition under this Act if the Secretary determines that the disposition would reduce the domestic supply of the commodity below the supply needed to meet domestic requirements and provide adequate carryover (as determined by the Secretary), unless the Secretary determines that some part of the supply should be used to carry out urgent humanitarian purposes under this Act.’;

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

      (3) in subsection (c) (as so redesignated), by striking ‘(e)(1)’ and inserting ‘(b)(1)’.

SEC. 213. GENERAL PROVISIONS.

    Section 403 of the Agricultural Trade Development and Assistance Act of 1954 (7 U.S.C. 1733) is amended--

      (1) in subsection (b)--

        (A) in the subsection heading, by striking ‘CONSULTATIONS’ and inserting ‘IMPACT ON LOCAL FARMERS AND ECONOMY’; and

        (B) by striking ‘consult with’ and all that follows through ‘other donor organizations to’;

      (2) in subsection (c)--

        (A) by striking ‘from countries’; and

        (B) by striking ‘for use’ and inserting ‘or use’;

      (3) in subsection (f)--

        (A) by inserting ‘or private entities, as appropriate,’ after ‘from countries’; and

        (B) by inserting ‘or private entities’ after ‘such countries’; and

      (4) in subsection (i)(2), by striking subparagraph (C).

SEC. 214. AGREEMENTS.

    Section 404 of the Agricultural Trade Development and Assistance Act of 1954 (7 U.S.C. 1734) is amended--

      (1) in subsection (a), by inserting ‘with foreign countries’ after ‘Before entering into agreements’;

      (2) in subsection (b)(2)--

        (A) by inserting ‘with foreign countries’ after ‘with respect to agreements entered into’; and

        (B) by inserting before the semicolon at the end the following: ‘and broad-based economic growth’; and

      (3) in subsection (c), by striking paragraph (1) and inserting the following:

      ‘(1) IN GENERAL- Agreements to provide assistance on a multi-year basis to recipient countries or to eligible organizations--

        ‘(A) may be made available under titles I and III; and

        ‘(B) shall be made available under title II.’.

SEC. 215. USE OF COMMODITY CREDIT CORPORATION.

    Section 406 of the Agricultural Trade Development and Assistance Act of 1954 (7 U.S.C. 1736) is amended--

      (1) in subsection (a), by striking ‘shall’ and inserting ‘may’; and

      (2) in subsection (b)--

        (A) by inserting ‘titles II and III of’ after ‘commodities made available under’; and

        (B) by striking paragraph (4) and inserting the following:

      ‘(4) the vessel freight charges from United States ports or designated Canadian transshipment ports, as determined by the Secretary, to designated ports of entry abroad;’.

SEC. 216. ADMINISTRATIVE PROVISIONS.

    Section 407 of the Agricultural Trade Development and Assistance Act of 1954 (7 U.S.C. 1736a) is amended--

      (1) in subsection (a)--

        (A) in paragraph(1), by inserting ‘or private entity that enters into an agreement under title I’ after ‘importing country’; and

        (B) in paragraph (2), by adding at the end the following: ‘Resulting contracts may contain such terms and conditions as the Secretary determines are necessary and appropriate.’;

      (2) in subsection (c)--

        (A) in paragraph (1)(A), by inserting ‘importer or’ before ‘importing country’; and

        (B) in paragraph (2)(A), by inserting ‘importer or’ before ‘importing country’;

      (3) in subsection (d)--

        (A) by striking paragraph (2) and inserting the following:

      ‘(2) FREIGHT PROCUREMENT- Notwithstanding the Federal Property and Administrative Services Act of 1949 (40 U.S.C. 471 et seq.) or other similar provisions of law relating to the making or performance of Federal Government contracts, ocean transportation under titles II and III may be procured on the basis of such full and open competitive procedures. Resulting contracts may contain such terms and conditions, as the Administrator determines are necessary and appropriate.’; and

        (B) by striking paragraph (4);

      (4) in subsection (g)(2)--

        (A) in subparagraph (B), by striking ‘and’ at the end;

        (B) in subparagraph (C), by striking the period at the end and inserting ‘; and’; and

        (C) by adding at the end the following:

        ‘(D) an assessment of the progress towards achieving food security in each country receiving food assistance from the United States Government, with special emphasis on the nutritional status of the poorest populations in each country.’; and

      (5) by striking subsection (h).

SEC. 217. EXPIRATION DATE.

    Section 408 of the Agricultural Trade Development and Assistance Act of 1954 (7 U.S.C. 1736b) is amended by striking ‘1995’ and inserting ‘2002’.

SEC. 218. REGULATIONS.

    Section 409 of the Agricultural Trade Development and Assistance Act of 1954 (7 U.S.C. 1736c) is repealed.

SEC. 219. INDEPENDENT EVALUATION OF PROGRAMS.

    Section 410 of the Agricultural Trade Development and Assistance Act of 1954 (7 U.S.C. 1736d) is repealed.

SEC. 220. AUTHORIZATION OF APPROPRIATIONS.

    Section 412 of the Agricultural Trade Development and Assistance Act of 1954 (7 U.S.C. 1736f) is amended--

      (1) by striking subsections (b) and (c) and inserting the following:

    ‘(b) TRANSFER OF FUNDS- Notwithstanding any other provision of law, the President may direct that--

      ‘(1) up to 15 percent of the funds available for any fiscal year for carrying out any title of this Act be used to carry out any other title of this Act; and

      ‘(2) any funds available for title III be used to carry out title II.’; and

      (2) by redesignating subsections (d) and (e) as subsections (c) and (d), respectively.

SEC. 221. COORDINATION OF FOREIGN ASSISTANCE PROGRAMS.

    Section 413 of the Agricultural Trade Development and Assistance Act of 1954 (7 U.S.C. 1736g) is amended by inserting ‘title III of’ before ‘this Act’ each place it appears.

SEC. 222. MICRONUTRIENT FORTIFICATION PILOT PROGRAM.

    Title IV of the Agricultural Trade Development and Assistance Act of 1954 (7 U.S.C. 1731 et seq.) is amended by adding at the end the following:

‘SEC. 415. MICRONUTRIENT FORTIFICATION PILOT PROGRAM.

    ‘(a) IN GENERAL- Not later than September 30, 1997, the Secretary, in consultation with the Administrator, shall establish a micronutrient fortification pilot program under this Act. The purposes of the program shall be to--

      ‘(1) assist developing countries in correcting micronutrient dietary deficiencies among segments of the populations of the countries; and

      ‘(2) encourage the development of technologies for the fortification of whole grains and other commodities that are readily transferable to developing countries.

    ‘(b) SELECTION OF PARTICIPATING COUNTRIES- From among the countries eligible for assistance under this Act, the Secretary may select not more than 5 developing countries to participate in the pilot program.

    ‘(c) FORTIFICATION- Under the pilot program, whole grains and other commodities made available to a developing country selected to participate in the pilot program may be fortified with 1 or more micronutrients (including vitamin A, iron, and iodine) with respect to which a substantial portion of the population in the country are deficient. The commodity may be fortified in the United States or in the developing country.

    ‘(d) TERMINATION OF AUTHORITY- The authority to carry out the pilot program established under this section shall terminate on September 30, 2002.’.

SEC. 223. USE OF CERTAIN LOCAL CURRENCY.

    Title IV of the Agricultural Trade Development and Assistance Act of 1954 (7 U.S.C. 1731 et seq.) (as amended by section 222) is further amended by adding at the end the following:

‘SEC. 416. USE OF CERTAIN LOCAL CURRENCY.

    ‘Local currency payments received by the United States pursuant to agreements entered into under title I (as in effect on November 27, 1990) may be utilized by the Secretary in accordance with section 108 (as in effect on November 27, 1990).’.

SEC. 224. LEVELS OF ASSISTANCE UNDER FARMER-TO-FARMER PROGRAM.

    Section 501 of the Agricultural Trade Development and Assistance Act of 1954 (7 U.S.C. 1737) is amended--

      (1) in subsection (a)--

        (A) by redesignating paragraphs (4) through (6) as paragraphs (5) through (7), respectively; and

        (B) by inserting after paragraph (3) the following:

      ‘(4) assist the travel of farmers and other agricultural professionals from developing countries, middle income countries, and emerging democracies to the United States for educational purposes consistent with the objectives of this section;’; and

      (2) in subsection (c), by striking ‘1991 through 1995’ and inserting ‘1996 through 2002’.

SEC. 225. FOOD SECURITY COMMODITY RESERVE.

    (a) IN GENERAL- Title III of the Agricultural Act of 1980 (7 U.S.C. 1736f-1 et seq.) is amended to read as follows:

‘TITLE III--FOOD SECURITY COMMODITY RESERVE

‘SEC. 301. SHORT TITLE.

    ‘This title may be cited as the ‘Food Security Commodity Reserve Act of 1996’.

‘SEC. 302. ESTABLISHMENT OF COMMODITY RESERVE.

    ‘(a) IN GENERAL- To provide for a reserve solely to meet emergency humanitarian food needs in developing countries, the Secretary of Agriculture (referred to in this title as the ‘Secretary’) shall establish a reserve stock of wheat, rice, corn, or sorghum, or any combination of the commodities, totalling not more than 4,000,000 metric tons for use as described in subsection (c).

    ‘(b) COMMODITIES IN RESERVE-

      ‘(1) IN GENERAL- The reserve established under this section shall consist of--

        ‘(A) wheat in the reserve established under the Food Security Wheat Reserve Act of 1980 as of the effective date of the Agricultural Reform and Improvement Act of 1996;

        ‘(B) wheat, rice, corn, and sorghum (referred to in this section as ‘eligible commodities’) acquired in accordance with paragraph (2) to replenish eligible commodities released from the reserve, including wheat to replenish wheat released from the reserve established under the Food Security Wheat Reserve Act of 1980 but not replenished as of the effective date of the Agricultural Reform and Improvement Act of 1996; and

        ‘(C) such rice, corn, and sorghum as the Secretary may, at such time and in such manner as the Secretary determines appropriate, acquire as a result of exchanging an equivalent value of wheat in the reserve established under this section.

      ‘(2) REPLENISHMENT OF RESERVE-

        ‘(A) IN GENERAL- Subject to subsection (i), commodities of equivalent value to eligible commodities in the reserve established under this section may be acquired--

          ‘(i) through purchases--

            ‘(I) from producers; or

            ‘(II) in the market, if the Secretary determines that the purchases will not unduly disrupt the market; or

          ‘(ii) by designation by the Secretary of stocks of eligible commodities of the Commodity Credit Corporation.

        ‘(B) FUNDS- Any use of funds to acquire eligible commodities through purchases from producers or in the market to replenish the reserve must be authorized in an appropriation Act.

    ‘(c) RELEASE OF ELIGIBLE COMMODITIES-

      ‘(1) EMERGENCY FOOD ASSISTANCE- Notwithstanding any other law, eligible commodities designated or acquired for the reserve established under this section may be released by the Secretary to provide, on a donation or sale basis, emergency food assistance to developing countries at such time as the domestic supply of the eligible commodities is so limited that quantities of the eligible commodities cannot be made available for disposition under the Agricultural Trade Development and Assistance Act of 1954 (7 U.S.C. 1691 et seq.) (other than disposition for urgent humanitarian purposes under section 401 of the Act (7 U.S.C. 1731)).

      ‘(2) PROVISION OF URGENT HUMANITARIAN RELIEF-

        ‘(A) IN GENERAL- Notwithstanding paragraph (1), eligible commodities may be released from the reserve established under this section for any fiscal year, without regard to the availability of domestic supply, for use under title II of the Agricultural Trade Development Assistance Act of 1954 (7 U.S.C. 1721 et seq.) in providing urgent humanitarian relief in any developing country suffering a major disaster (as determined by the Secretary) in accordance with this paragraph.

        ‘(B) EXCEPTIONAL NEED- If the eligible commodities needed for relief cannot be made available for relief in a timely manner under the normal means of obtaining eligible commodities for food assistance because of circumstances of unanticipated and exceptional need, up to 500,000 metric tons of eligible commodities may be released under subparagraph (A).

        ‘(C) FUNDS- If the Secretary certifies that the funds made available for a fiscal year to carry out title II of the Agricultural Trade Development and Assistance Act of 1954 (7 U.S.C. 1721 et seq.) are not less than the funds made available for the previous fiscal year, up to 1,000,000 metric tons of eligible commodities may be released under subparagraph (A).

        ‘(D) WAIVER OF MINIMUM TONNAGE REQUIREMENTS- Nothing in this paragraph shall require the exercise of the waiver under section 204(a)(3) of the Agricultural Trade Development and Assistance Act of 1954 (7 U.S.C. 5624(a)(3)) as a prerequisite for the release of eligible commodities under this paragraph.

        ‘(E) LIMITATION- The quantity of eligible commodities released under this paragraph may not exceed 1,000,000 metric tons in any fiscal year.

      ‘(3) PROCESSING OF ELIGIBLE COMMODITIES- Eligible commodities that are released from the reserve established under this section may be processed in the United States and shipped to a developing country when conditions in the recipient country require processing.

      ‘(4) EXCHANGE- The Secretary may exchange an eligible commodity for another United States commodity of equal value, including powdered milk, pulses, and vegetable oil.

    ‘(d) USE OF ELIGIBLE COMMODITIES- Eligible commodities that are released from the reserve established under this section for the purpose of subsection (c) shall be made available under the Agricultural Trade Development and Assistance Act of 1954 (7 U.S.C. 1691 et seq.) to meet famine or other urgent or extraordinary relief needs, except that section 401 of the Act (7 U.S.C. 1731), with respect to determinations of availability, shall not be applicable to the release.

    ‘(e) MANAGEMENT OF ELIGIBLE COMMODITIES- The Secretary shall provide--

      ‘(1) for the management of eligible commodities in the reserve established under this section as to location and quality of eligible commodities needed to meet emergency situations; and

      ‘(2) for the periodic rotation or replacement of stocks of eligible commodities in the reserve to avoid spoilage and deterioration of the commodities.

    ‘(f) TREATMENT OF RESERVE UNDER OTHER LAW- Eligible commodities in the reserve established under this section shall not be--

      ‘(1) considered a part of the total domestic supply (including carryover) for the purpose of subsection (c) or for the purpose of administering the Agricultural Trade Development and Assistance Act of 1954 (7 U.S.C. 1691 et seq.); and

      ‘(2) subject to any quantitative limitation on exports that may be imposed under section 7 of the Export Administration Act of 1979 (50 U.S.C. App. 2406).

    ‘(g) USE OF COMMODITY CREDIT CORPORATION-

      ‘(1) IN GENERAL- Subject to the limitations provided in this section, the funds, facilities, and authorities of the Commodity Credit Corporation shall be used by the Secretary in carrying out this section, except that any restriction applicable to the acquisition, storage, or disposition of eligible commodities owned or controlled by the Commodity Credit Corporation shall not apply.

      ‘(2) REIMBURSEMENT-

        ‘(A) IN GENERAL- The Commodity Credit Corporation shall be reimbursed for the release of eligible commodities from funds made available to carry out the Agricultural Trade Development and Assistance Act of 1954 (7 U.S.C. 1691 et seq.).

        ‘(B) BASIS FOR REIMBURSEMENT- The reimbursement shall be made on the basis of the lesser of--

          ‘(i) the actual costs incurred by the Commodity Credit Corporation with respect to the eligible commodity; or

          ‘(ii) the export market price of the eligible commodity (as determined by the Secretary) as of the time the eligible commodity is released from the reserve for the purpose.

        ‘(C) SOURCE OF FUNDS- The reimbursement may be made from funds appropriated for the purpose of reimbursement in subsequent fiscal years.

    ‘(h) FINALITY OF DETERMINATION- Any determination by the Secretary under this section shall be final.

    ‘(i) TERMINATION OF AUTHORITY-

      ‘(1) IN GENERAL- The authority to replenish stocks of eligible commodities to maintain the reserve established under this section shall terminate on September 30, 2002.

      ‘(2) DISPOSAL OF ELIGIBLE COMMODITIES- Eligible commodities remaining in the reserve after September 30, 2002, shall be disposed of by release for use in providing for emergency humanitarian food needs in developing countries as provided in this section.’.

    (b) CONFORMING AMENDMENT- Section 208(d) of the Agriculture Trade Suspension Adjustment Act of 1980 (7 U.S.C. 4001(d)) is amended by striking paragraph (2) and inserting the following:

      ‘(2) APPLICABILITY OF CERTAIN PROVISIONS- Subsections (c), (d), (e), (f), and (g)(2) of section 302 of the Food Security Commodity Reserve Act of 1996 shall apply to commodities in any reserve established under paragraph (1), except that the references to ‘eligible commodities’ in the subsections shall be deemed to be references to ‘agricultural commodities’.’.

SEC. 226. PROTEIN BYPRODUCTS DERIVED FROM ALCOHOL FUEL PRODUCTION.

    Section 1208 of the Agriculture and Food Act of 1981 (7 U.S.C. 1736n) is repealed.

SEC. 227. FOOD FOR PROGRESS PROGRAM.

    The Food for Progress Act of 1985 (7 U.S.C. 1736o) is amended--

      (1) in subsection (b)--

        (A) in paragraph (1)--

          (i) by striking ‘(b)(1)’ and inserting ‘(b)’; and

          (ii) in the first sentence, by inserting ‘intergovernmental organizations’ after ‘cooperatives’; and

        (B) by striking paragraph (2);

      (2) in subsection (e)(4), by striking ‘203’ and inserting ‘406’;

      (3) in subsection (f)--

        (A) in paragraph (1), by striking ‘in the case of the independent states of the former Soviet Union,’;

        (B) by striking paragraph (2);

        (C) in paragraph (4), by inserting ‘in each of fiscal years 1996 through 2002’ after ‘may be used’; and

        (D) by redesignating paragraphs (3) through (5) as paragraphs (2) through (4), respectively;

      (4) in subsection (g), by striking ‘1995’ and inserting ‘2002’;

      (5) in subsection (j), by striking ‘shall’ and inserting ‘may’;

      (6) in subsection (k), by striking ‘1995’ and inserting ‘2002’;

      (7) in subsection (l)(1)--

        (A) by striking ‘1991 through 1995’ and inserting ‘1996 through 2002’; and

        (B) by inserting ‘, and to provide technical assistance for monetization programs,’ after ‘monitoring of food assistance programs’; and

      (8) in subsection (m)--

        (A) by striking ‘with respect to the independent states of the former Soviet Union’;

        (B) by striking ‘private voluntary organizations and cooperatives’ each place it appears and inserting ‘agricultural trade organizations, intergovernmental organizations, private voluntary organizations, and cooperatives’; and

        (C) in paragraph (2), by striking ‘in the independent states’.

SEC. 228. USE OF FOREIGN CURRENCY PROCEEDS FROM EXPORT SALES FINANCING.

    Section 402 of the Mutual Security Act of 1954 (22 U.S.C. 1922) is repealed.

SEC. 229. STIMULATION OF FOREIGN PRODUCTION.

    Section 7 of the Act of December 30, 1947 (61 Stat. 947, chapter 526; 50 U.S.C. App. 1917) is repealed.

Subtitle B--Amendments to Agricultural Trade Act of 1978

SEC. 241. AGRICULTURAL EXPORT PROMOTION STRATEGY.

    (a) IN GENERAL- Section 103 of the Agricultural Trade Act of 1978 (7 U.S.C. 5603) is amended to read as follows:

‘SEC. 103. AGRICULTURAL EXPORT PROMOTION STRATEGY.

    ‘(a) IN GENERAL- The Secretary shall develop a strategy for implementing Federal agricultural export promotion programs that takes into account the new market opportunities for agricultural products, including opportunities that result from--

      ‘(1) the North American Free Trade Agreement and the Uruguay Round Agreements;

      ‘(2) any accession to membership in the World Trade Organization;

      ‘(3) the continued economic growth in the Pacific Rim; and

      ‘(4) other developments.

    ‘(b) PURPOSE OF STRATEGY- The strategy developed under subsection (a) shall encourage the maintenance, development, and expansion of export markets for United States agricultural commodities and related products, including high-value and value-added products.

    ‘(c) GOALS OF STRATEGY- The strategy developed under subsection (a) shall have the following goals:

      ‘(1) By September 30, 2002, increasing the value of annual United States agricultural exports to $60,000,000,000.

      ‘(2) By September 30, 2002, increasing the United States share of world export trade in agricultural products significantly above the average United States share from 1993 through 1995.

      ‘(3) By September 30, 2002, increasing the United States share of world trade in high-value agricultural products to 20 percent.

      ‘(4) Ensuring that the value of United States exports of agricultural products increases at a faster rate than the rate of increase in the value of overall world export trade in agricultural products.

      ‘(5) Ensuring that the value of United States exports of high-value agricultural products increases at a faster rate than the rate of increase in overall world export trade in high-value agricultural products.

      ‘(6) Ensuring to the extent practicable that--

        ‘(A) substantially all obligations undertaken in the Uruguay Round Agreement on Agriculture that provide significantly increased access for United States agricultural commodities are implemented to the extent required by the Uruguay Round Agreements; or

        ‘(B) applicable United States trade laws are used to secure United States rights under the Uruguay Round Agreement on Agriculture.

    ‘(d) PRIORITY MARKETS-

      ‘(1) IDENTIFICATION OF MARKETS- In developing the strategy required under subsection (a), the Secretary shall identify as priority markets--

        ‘(A) those markets in which imports of agricultural products show the greatest potential for increase by September 30, 2002; and

        ‘(B) those markets in which, with the assistance of Federal export promotion programs, exports of United States agricultural products show the greatest potential for increase by September 30, 2002.

      ‘(2) IDENTIFICATION OF SUPPORTING OFFICES- The President shall identify annually in the budget of the United States Government submitted under section 1105 of title 31, United States Code, each overseas office of the Foreign Agricultural Service that provides assistance to United States exporters in each of the priority markets identified under paragraph (1).

    ‘(e) REPORT- Not later than December 31, 2001, the Secretary shall prepare and submit a report to Congress assessing progress in meeting the goals established by subsection (c).

    ‘(f) FAILURE TO MEET GOALS- Notwithstanding any other law, if the Secretary determines that more than 2 of the goals established by subsection (c) are not met by September 30, 2002, the Secretary may not carry out agricultural trade programs under the Agricultural Trade Act of 1978 (7 U.S.C. 5601 et seq.) as of that date.

    ‘(g) NO PRIVATE RIGHT OF ACTION- This section shall not create any private right of action.’.

    (b) CONTINUATION OF FUNDING-

      (1) IN GENERAL- If the Secretary of Agriculture makes a determination under section 103(f) of the Agricultural Trade Act of 1978 (as amended by subsection (a)), the Secretary shall utilize funds of the Commodity Credit Corporation to promote United States agricultural exports in a manner consistent with the Commodity Credit Corporation Charter Act (15 U.S.C. 714 et seq.) and obligations pursuant to the Uruguay Round Agreements.

      (2) FUNDING- The amount of Commodity Credit Corporation funds used to carry out paragraph (1) during a fiscal year shall not exceed the total outlays for agricultural trade programs under the Agricultural Trade Act of 1978 (7 U.S.C. 5601 et seq.) during fiscal year 2002.

    (c) ELIMINATION OF REPORT-

      (1) IN GENERAL- Section 601 of the Agricultural Trade Act of 1978 (7 U.S.C. 5711) is repealed.

      (2) CONFORMING AMENDMENT- The last sentence of section 603 of the Agricultural Trade Act of 1978 (7 U.S.C. 5713) is amended by striking ‘, in a consolidated report,’ and all that follows through ‘section 601’ and inserting ‘or in a consolidated report’.

SEC. 242. EXPORT CREDITS.

    (a) EXPORT CREDIT GUARANTEE PROGRAM- Section 202 of the Agricultural Trade Act of 1978 (7 U.S.C. 5622) is amended--

      (1) in subsection (a)--

        (A) by striking ‘GUARANTEES- The’ and inserting the following: ‘GUARANTEES-

      ‘(1) IN GENERAL- The’; and

        (B) by adding at the end the following:

      ‘(2) SUPPLIER CREDITS- In carrying out this section, the Commodity Credit Corporation may issue guarantees for the repayment of credit made available for a period of not more than 180 days by a United States exporter to a buyer in a foreign country.’;

      (2) in subsection (f)--

        (A) by striking ‘(f) RESTRICTIONS- The’ and inserting the following:

    ‘(f) RESTRICTIONS-

      ‘(1) IN GENERAL- The’; and

        (B) by adding at the end the following:

      ‘(2) CRITERIA FOR DETERMINATION- In making the determination required under paragraph (1) with respect to credit guarantees under subsection (b) for a country, the Secretary may consider, in addition to financial, macroeconomic, and monetary indicators--

        ‘(A) whether an International Monetary Fund standby agreement, Paris Club rescheduling plan, or other economic restructuring plan is in place with respect to the country;

        ‘(B) the convertibility of the currency of the country;

        ‘(C) whether the country provides adequate legal protection for foreign investments;

        ‘(D) whether the country has viable financial markets;

        ‘(E) whether the country provides adequate legal protection for the private property rights of citizens of the country; and

        ‘(F) any other factors that are relevant to the ability of the country to service the debt of the country.’;

      (3) by striking subsection (h) and inserting the following:

    ‘(h) UNITED STATES AGRICULTURAL COMPONENTS- The Commodity Credit Corporation shall finance or guarantee under this section only United States agricultural commodities.’;

      (4) in subsection (i)--

        (A) by striking ‘INSTITUTIONS- A financial’ and inserting the following: ‘INSTITUTIONS-

      ‘(1) IN GENERAL- A financial’;

        (B) by striking paragraph (1);

        (C) by striking ‘(2) is’ and inserting the following:

        ‘(A) is’;

        (D) by striking ‘(3) is’ and inserting the following:

        ‘(B) is’; and

        (E) by adding at the end the following:

      ‘(2) THIRD COUNTRY BANKS- The Commodity Credit Corporation may guarantee under subsections (a) and (b) the repayment of credit made available to finance an export sale irrespective of whether the obligor is located in the country to which the export sale is destined.’; and

      (5) by striking subsection (k) and inserting the following:

    ‘(k) PROCESSED AND HIGH-VALUE PRODUCTS-

      ‘(1) IN GENERAL- In issuing export credit guarantees under this section, the Commodity Credit Corporation shall, subject to paragraph (2), ensure that not less than 25 percent for each of fiscal years 1996 and 1997, 30 percent for each of fiscal years 1998 and 1999, and 35 percent for each of fiscal years 2000, 2001, and 2002, of the total amount of credit guarantees issued for a fiscal year is issued to promote the export of processed or high-value agricultural products and that the balance is issued to promote the export of bulk or raw agricultural commodities.

      ‘(2) LIMITATION- The percentage requirement of paragraph (1) shall apply for a fiscal year to the extent that a reduction in the total amount of credit guarantees issued for the fiscal year is not required to meet the percentage requirement.’.

    (b) FUNDING LEVELS- Section 211(b) of the Agricultural Trade Act of 1978 (7 U.S.C. 5641(b)) is amended--

      (1) by striking paragraph (2);

      (2) by redesignating subparagraph (B) of paragraph (1) as paragraph (2) and indenting the margin of paragraph (2) (as so redesignated) so as to align with the margin of paragraph (1); and

      (3) by striking paragraph (1) and inserting the following:

      ‘(1) EXPORT CREDIT GUARANTEES- The Commodity Credit Corporation shall make available for each of fiscal years 1996 through 2002 not less than $5,500,000,000 in credit guarantees under subsections (a) and (b) of section 202.’.

    (c) DEFINITIONS- Section 102(7) of the Agricultural Trade Act of 1978 (7 U.S.C. 5602(7)) is amended by striking subparagraphs (A) and (B) and inserting the following:

        ‘(A) an agricultural commodity or product entirely produced in the United States; or

        ‘(B) a product of an agricultural commodity--

          ‘(i) 90 percent or more of which by weight, excluding packaging and water, is entirely produced in the United States; and

          ‘(ii) that the Secretary determines to be a high value agricultural product.’.

    (d) REGULATIONS- Not later than 180 days after the effective date of this title, the Secretary of Agriculture shall issue regulations to carry out the amendments made by this section.

SEC. 243. MARKET PROMOTION PROGRAM.

    Effective October 1, 1995, section 211(c)(1) of the Agricultural Trade Act of 1978 (7 U.S.C. 5641(c)(1)) is amended--

      (1) by striking ‘and’ after ‘1991 through 1993,’; and

      (2) by striking ‘through 1997,’ and inserting ‘through 1995, and not more than $70,000,000 for each of fiscal years 1996 through 2002,’:

    Provided, That funds made available under this Act to carry out the non-generic activities of the market promotion program established under section 203 of the Agricultural Trade Act of 1978 (7 U.S.C. 5623) may be used to provide cost-share assistance only to organizations that are non-foreign entities and are recognized as small business concerns under section 3(a) of the Small Business Act (15 U.S.C. 632(a)) or to the associations described in the first section of the Act entitled ‘An Act to authorize association of producers of agricultural products’, approved February 22, 1922 (7 U.S.C. 291): Provided further, that such funds may not be used to provide cost-share assistance to a foreign eligible trade organization: Provided further, That none of the funds made available under this Act may be used to carry out the market promotion program established under section 203 of the Agricultural Trade Act of 1978 (7 U.S.C. 5623) if the aggregate amount of funds and value of commodities under the program exceeds $70,000,000.

SEC. 244. EXPORT ENHANCEMENT PROGRAM.

    Effective October 1, 1995, section 301(e)(1) of the Agricultural Trade Act of 1978 (7 U.S.C. 5651(e)(1)) is amended to read as follows:

      ‘(1) IN GENERAL- The Commodity Credit Corporation shall make available to carry out the program established under this section not more than--

        ‘(A) $350,000,000 for fiscal year 1996;

        ‘(B) $350,000,000 for fiscal year 1997;

        ‘(C) $500,000,000 for fiscal year 1998;

        ‘(D) $550,000,000 for fiscal year 1999;

        ‘(E) $579,000,000 for fiscal year 2000;

        ‘(F) $478,000,000 for fiscal year 2001; and

        ‘(G) $478,000,000 for fiscal year 2002.’.

SEC. 245. ARRIVAL CERTIFICATION.

    Section 401 of the Agricultural Trade Act of 1978 (7 U.S.C. 5662(a)) is amended by striking subsection (a) and inserting the following:

    ‘(a) ARRIVAL CERTIFICATION- With respect to a commodity provided, or for which financing or a credit guarantee or other assistance is made available, under a program authorized in section 201, 202, or 301, the Commodity Credit Corporation shall require the exporter of the commodity to maintain records of an official or customary commercial nature or other documents as the Secretary may require, and shall allow representatives of the Commodity Credit Corporation access to the records or documents as needed, to verify the arrival of the commodity in the country that was the intended destination of the commodity.’.

SEC. 246. COMPLIANCE.

    Section 402(a) of the Agricultural Trade Act of 1978 (7 U.S.C. 5662(a)) is amended--

      (1) by striking paragraph (2); and

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

SEC. 247. REGULATIONS.

    Section 404 of the Agricultural Trade Act of 1978 (7 U.S.C. 5664) is repealed.

SEC. 248. TRADE COMPENSATION AND ASSISTANCE PROGRAMS.

    Title IV of the Agricultural Trade Act of 1978 (7 U.S.C. 5661 et seq.) is amended by adding at the end the following:

‘SEC. 417. TRADE COMPENSATION AND ASSISTANCE PROGRAMS.

    ‘(a) IN GENERAL- Notwithstanding any other law, if, after the effective date of this section, the President or any other member of the Executive branch causes exports from the United States to any country to be unilaterally suspended for reasons of national security or foreign policy, and if within 180 days after the date on which the suspension is imposed on United States exports no other country agrees to participate in the suspension, the Secretary shall carry out a trade compensation and assistance program in accordance with this section (referred to in this section as a ‘program’).

    ‘(b) PROVISION OF FUNDS- Under a program, the Secretary shall make available for each fiscal year funds of the Commodity Credit Corporation, in an amount calculated under subsection (c), to promote agricultural exports or provide agricultural commodities to developing countries, under any authorities available to the Secretary.

    ‘(c) DETERMINATION OF AMOUNT OF FUNDS- For each fiscal year of a program, the amount of funds made available under subsection (b) shall be equal to 90 percent of the average annual value of United States agricultural exports to the country with respect to which exports are suspended during the most recent 3 years prior to the suspension for which data are available.

    ‘(d) DURATION OF PROGRAM-

      ‘(1) IN GENERAL- For each suspension of exports for which a program is implemented under this section, funds shall be made available under subsection (b) for each fiscal year or part of a fiscal year for which the suspension is in effect, but not to exceed 2 fiscal years.

      ‘(2) PARTIAL-YEAR EMBARGOES- Regardless of whether an embargo is in effect for only part of a fiscal year, the full amount of funds as calculated under subsection (c) shall be made available under a program for the fiscal year. If the Secretary determines that making the required amount of funds available in a partial fiscal year is impracticable, the Secretary may make all or part of the funds required to be made available in the partial fiscal year available in the following fiscal year (in addition to any funds otherwise required under a program to be made available in the following fiscal year).’.

SEC. 249. FOREIGN AGRICULTURAL SERVICE.

    Section 503 of the Agricultural Trade Act of 1978 (7 U.S.C. 5693) is amended to read as follows:

‘SEC. 503. ESTABLISHMENT OF THE FOREIGN AGRICULTURAL SERVICE.

    ‘The Service shall assist the Secretary in carrying out the agricultural trade policy and international cooperation policy of the United States by--

      ‘(1) acquiring information pertaining to agricultural trade;

      ‘(2) carrying out market promotion and development activities;

      ‘(3) providing agricultural technical assistance and training; and

      ‘(4) carrying out the programs authorized under this Act, the Agricultural Trade Development and Assistance Act of 1954 (7 U.S.C. 1691 et seq.), and other Acts.’.

SEC. 250. REPORTS.

    The first sentence of section 603 of the Agricultural Trade Act of 1978 (7 U.S.C. 5713) is amended by striking ‘The’ and inserting ‘Subject to section 217 of the Department of Agriculture Reorganization Act of 1994 (7 U.S.C. 6917), the’.

Subtitle C--Miscellaneous

SEC. 251. REPORTING REQUIREMENTS RELATING TO TOBACCO.

    Section 214 of the Tobacco Adjustment Act of 1983 (7 U.S.C. 509) is repealed.

SEC. 252. TRIGGERED EXPORT ENHANCEMENT.

    (a) READJUSTMENT OF SUPPORT LEVELS- Section 1302 of the Omnibus Budget Reconciliation Act of 1990 (Public Law 101-508; 7 U.S.C. 1421 note) is repealed.

    (b) TRIGGERED MARKETING LOANS AND EXPORT ENHANCEMENT- Section 4301 of the Omnibus Trade and Competitiveness Act of 1988 (Public Law 100-418; 7 U.S.C. 1446 note) is repealed.

    (c) EFFECTIVE DATE- The amendments made by this section shall be effective beginning with the 1996 crops of wheat, feed grains, upland cotton, and rice.

SEC. 253. DISPOSITION OF COMMODITIES TO PREVENT WASTE.

    Section 416 of the Agricultural Act of 1949 (7 U.S.C. 1431) is amended--

      (1) in subsection (b)--

        (A) in paragraph (1), by inserting after the first sentence the following: ‘The Secretary may use funds of the Commodity Credit Corporation to cover administrative expenses of the programs.’;

        (B) in paragraph (7)(D)(iv), by striking ‘one year of acquisition’ and all that follows and inserting the following: ‘a reasonable length of time, as determined by the Secretary, except that the Secretary may permit the use of proceeds in a country other than the country of origin--

        ‘(I) as necessary to expedite the transportation of commodities and products furnished under this subsection; or

        ‘(II) if the proceeds are generated in a currency generally accepted in the other country.’;

        (C) in paragraph (8), by striking subparagraph (C); and

        (D) by striking paragraphs (10), (11), and (12); and

      (2) by striking subsection (c).

SEC. 254. DIRECT SALES OF DAIRY PRODUCTS.

    Section 106 of the Agriculture and Food Act of 1981 (7 U.S.C. 1446c-1) is repealed.

SEC. 255. EXPORT SALES OF DAIRY PRODUCTS.

    Section 1163 of the Food Security Act of 1985 (Public Law 99-198; 7 U.S.C. 1731 note) is repealed.

SEC. 256. DEBT-FOR-HEALTH-AND-PROTECTION SWAP.

    (a) IN GENERAL- Section 1517 of the Food, Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 1706) is repealed.

    (b) CONFORMING AMENDMENT- Subsection (e)(3) of the Food for Progress Act of 1985 (7 U.S.C. 1736o(e)(3)) is amended by striking ‘section 106’ and inserting ‘section 103’.

SEC. 257. POLICY ON EXPANSION OF INTERNATIONAL MARKETS.

    Section 1207 of the Agriculture and Food Act of 1981 (7 U.S.C. 1736m) is repealed.

SEC. 258. POLICY ON MAINTENANCE AND DEVELOPMENT OF EXPORT MARKETS.

    Section 1121 of the Food Security Act of 1985 (7 U.S.C. 1736p) is amended--

      (1) by striking subsection (a); and

      (2) in subsection (b)--

        (A) by striking ‘(b)’; and

        (B) by striking paragraphs (1) through (4) and inserting the following:

      ‘(1) be the premier supplier of agricultural and food products to world markets and expand exports of high value products;

      ‘(2) support the principle of free trade and the promotion of fair trade in agricultural commodities and products;

      ‘(3) cooperate fully in all efforts to negotiate with foreign countries further reductions in tariff and nontariff barriers to trade, including sanitary and phytosanitary measures and trade-distorting subsidies;

      ‘(4) aggressively counter unfair foreign trade practices as a means of encouraging fairer trade;’.

SEC. 259. POLICY ON TRADE LIBERALIZATION.

    Section 1122 of the Food Security Act of 1985 (7 U.S.C. 1736q) is repealed.

SEC. 260. AGRICULTURAL TRADE NEGOTIATIONS.

    Section 1123 of the Food Security Act of 1985 (7 U.S.C. 1736r) is amended to read as follows:

‘SEC. 1123. TRADE NEGOTIATIONS POLICY.

    ‘(a) FINDINGS- Congress finds that--

      ‘(1) on a level playing field, United States producers are the most competitive suppliers of agricultural products in the world;

      ‘(2) exports of United States agricultural products will account for $53,000,000,000 in 1995, contributing a net $24,000,000,000 to the merchandise trade balance of the United States and supporting approximately 1,000,000 jobs;

      ‘(3) increased agricultural exports are critical to the future of the farm, rural, and overall United States economy, but the opportunities for increased agricultural exports are limited by the unfair subsidies of the competitors of the United States, and a variety of tariff and nontariff barriers to highly competitive United States agricultural products;

      ‘(4) international negotiations can play a key role in breaking down barriers to United States agricultural exports;

      ‘(5) the Uruguay Round Agreement on Agriculture made significant progress in the attainment of increased market access opportunities for United States exports of agricultural products, for the first time--

        ‘(A) restraining foreign trade-distorting domestic support and export subsidy programs; and

        ‘(B) developing common rules for the application of sanitary and phytosanitary restrictions;

      that should result in increased exports of United States agricultural products, jobs, and income growth in the United States;

      ‘(6) the Uruguay Round Agreement on Agriculture did not succeed in completely eliminating trade distorting domestic support and export subsidies by--

        ‘(A) allowing the European Union to continue unreasonable levels of spending on export subsidies; and

        ‘(B) failing to discipline monopolistic state trading entities, such as the Canadian Wheat Board, that use nontransparent and discriminatory pricing as a hidden de facto export subsidy;

      ‘(7) during the period 1996 through 2002, there will be several opportunities for the United States to negotiate fairer trade in agricultural products, including further negotiations under the World Trade Organization, and steps toward possible free trade agreements of the Americas and Asian-Pacific Economic Cooperation (APEC); and

      ‘(8) the United States should aggressively use these opportunities to achieve more open and fair opportunities for trade in agricultural products.

    ‘(b) GOALS OF THE UNITED STATES IN AGRICULTURAL TRADE NEGOTIATIONS- The objectives of the United States with respect to future negotiations on agricultural trade include--

      ‘(1) increasing opportunities for United States exports of agricultural products by eliminating or substantially reducing tariff and nontariff barriers to trade;

      ‘(2) leveling the playing field for United States producers of agricultural products by limiting per unit domestic production supports to levels that are no greater than those available in the United States;

      ‘(3) ending the practice of export dumping by eliminating all trade distorting export subsidies and disciplining state trading entities so that they do not (except in cases of bona fide food aid) sell in foreign markets at below domestic market prices nor their full costs of acquiring and delivering agricultural products to the foreign markets; and

      ‘(4) encouraging government policies that avoid price-depressing surpluses.’.

SEC. 261. POLICY ON UNFAIR TRADE PRACTICES.

    Section 1164 of the Food Security Act of 1985 (Public Law 99-198; 99 Stat. 1499) is repealed.

SEC. 262. AGRICULTURAL AID AND TRADE MISSIONS.

    (a) IN GENERAL- The Agricultural Aid and Trade Missions Act (7 U.S.C. 1736bb et seq.) is repealed.

    (b) CONFORMING AMENDMENT- Section 7 of Public Law 100-277 (7 U.S.C. 1736bb note) is repealed.

SEC. 263. ANNUAL REPORTS BY AGRICULTURAL ATTACHES.

    Section 108(b)(1)(B) of the Agricultural Act of 1954 (7 U.S.C. 1748(b)(1)(B)) is amended by striking ‘including fruits, vegetables, legumes, popcorn, and ducks’.

SEC. 264. WORLD LIVESTOCK MARKET PRICE INFORMATION.

    Section 1545 of the Food, Agriculture, Conservation, and Trade Act of 1990 (Public Law 101-624; 7 U.S.C. 1761 note) is repealed.

SEC. 265. ORDERLY LIQUIDATION OF STOCKS.

    Sections 201 and 207 of the Agricultural Act of 1956 (7 U.S.C. 1851 and 1857) are repealed.

SEC. 266. SALES OF EXTRA LONG STAPLE COTTON.

    Section 202 of the Agricultural Act of 1956 (7 U.S.C. 1852) is repealed.

SEC. 267. REGULATIONS.

    Section 707 of the Freedom for Russia and Emerging Eurasian Democracies and Open Markets Support Act of 1992 (Public Law 102-511; 7 U.S.C. 5621 note) is amended by striking subsection (d).

SEC. 268. EMERGING MARKETS.

    (a) PROMOTION OF AGRICULTURAL EXPORTS TO EMERGING MARKETS-

      (1) EMERGING MARKETS- Section 1542 of the Food, Agriculture, Conservation, and Trade Act of 1990 (Public Law 101-624; 7 U.S.C. 5622 note) is amended--

        (A) in the section heading, by striking ‘emerging democracies’ and inserting ‘emerging markets’;

        (B) by striking ‘emerging democracies’ each place it appears in subsections (b), (d), and (e) and inserting ‘emerging markets’;

        (C) by striking ‘emerging democracy’ each place it appears in subsection (c) and inserting ‘emerging market’; and

        (D) by striking subsection (f) and inserting the following:

    ‘(f) EMERGING MARKET- In this section and section 1543, the term ‘emerging market’ means any country that the Secretary determines--

      ‘(1) is taking steps toward a market-oriented economy through the food, agriculture, or rural business sectors of the economy of the country; and

      ‘(2) has the potential to provide a viable and significant market for United States agricultural commodities or products of United States agricultural commodities.’.

      (2) FUNDING- Section 1542 of the Food, Agriculture, Conservation, and Trade Act of 1990 is amended by striking subsection (a) and inserting the following:

    ‘(a) FUNDING- The Commodity Credit Corporation shall make available for fiscal years 1996 through 2002 not less than $1,000,000,000 of direct credits or export credit guarantees for exports to emerging markets under section 201 or 202 of the Agricultural Trade Act of 1978 (7 U.S.C. 5621 and 5622), in addition to the amounts acquired or authorized under section 211 of the Act (7 U.S.C. 5641) for the program.’.

      (3) AGRICULTURAL FELLOWSHIP PROGRAM- Section 1542 of the Food, Agriculture, Conservation, and Trade Act of 1990 is amended--

        (A) in subsection (b), by striking the last sentence and inserting the following: ‘The Commodity Credit Corporation shall give priority under this subsection to--

      ‘(A) projects that encourage the privatization of the agricultural sector or that benefit private farms or cooperatives in emerging markets; and

      ‘(B) projects for which nongovernmental persons agree to assume a relatively larger share of the costs.’; and

        (B) in subsection (d)--

          (i) in the matter preceding paragraph (1), by striking ‘the Soviet Union’ and inserting ‘emerging markets’;

          (ii) in paragraph (1)--

            (I) in subparagraph (A)(i)--

(aa) by striking ‘1995’ and inserting ‘2002’; and

(bb) by striking ‘those systems, and identify’ and inserting ‘the systems, including potential reductions in trade barriers, and identify and carry out’;

            (II) in subparagraph (B), by striking ‘shall’ and inserting ‘may’;

            (III) in subparagraph (D), by inserting ‘(including the establishment of extension services)’ after ‘technical assistance’;

            (IV) by striking subparagraph (F);

            (V) by redesignating subparagraphs (G), (H), and (I) as subparagraphs (F), (G), and (H), respectively; and

            (VI) in subparagraph (H) (as redesignated by subclause (V)), by striking ‘$10,000,000’ and inserting ‘$20,000,000’;

          (iii) in paragraph (2)--

            (I) by striking ‘the Soviet Union’ each place it appears and inserting ‘emerging markets’;

            (II) in subparagraph (A), by striking ‘a free market food production and distribution system’ and inserting ‘free market food production and distribution systems’;

            (III) in subparagraph (B)--

(aa) in clause (i), by striking ‘Government’ and inserting ‘governments’;

(bb) in clause (iii)(II), by striking ‘and’ at the end;

(cc) in clause (iii)(III), by striking the period at the end and inserting ‘; and’; and

(dd) by adding at the end of clause (iii) the following:

            ‘(IV) to provide for the exchange of administrators and faculty members from agricultural and other institutions to strengthen and revise educational programs in agricultural economics, agribusiness, and agrarian law, to support change towards a free market economy in emerging markets.’;

            (IV) by striking subparagraph (D); and

            (V) by redesignating subparagraph (E) as subparagraph (D); and

          (iv) by striking paragraph (3).

      (4) UNITED STATES AGRICULTURAL COMMODITY- Subsections (b) and (c) of section 1542 of the Food, Agriculture, Conservation, and Trade Act of 1990 are amended by striking ‘section 101(6)’ each place it appears and inserting ‘section 102(7)’.

      (5) REPORT- The first sentence of section 1542(e)(2) of the Food, Agriculture, Conservation, and Trade Act of 1990 is amended by striking ‘Not’ and inserting ‘Subject to section 217 of the Department of Agriculture Reorganization Act of 1994 (7 U.S.C. 6917), not’.

    (b) AGRICULTURAL FELLOWSHIP PROGRAM FOR MIDDLE INCOME COUNTRIES, EMERGING DEMOCRACIES, AND EMERGING MARKETS- Section 1543 of the Food, Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 3293) is amended--

      (1) in the section heading, by striking ‘middle income countries and emerging democracies’ and inserting ‘middle income countries, emerging democracies, and emerging markets’;

      (2) in subsection (b), by adding at the end the following:

      ‘(5) EMERGING MARKET- Any emerging market, as defined in section 1542(f).’; and

      (3) in subsection (c)(1), by striking ‘food needs’ and inserting ‘food and fiber needs’.

    (c) CONFORMING AMENDMENTS-

      (1) Section 501 of the Agricultural Trade Development and Assistance Act of 1954 (7 U.S.C. 1737) is amended--

        (A) in subsection (a), by striking ‘emerging democracies’ and inserting ‘emerging markets’; and

        (B) in subsection (b), by striking paragraph (1) and inserting the following:

      ‘(1) EMERGING MARKET- The term ‘emerging market’ means any country that the Secretary determines--

        ‘(A) is taking steps toward a market-oriented economy through the food, agriculture, or rural business sectors of the economy of the country; and

        ‘(B) has the potential to provide a viable and significant market for United States agricultural commodities or products of United States agricultural commodities.’.

      (2) Section 201(d)(1)(C)(ii) of the Agricultural Trade Act of 1978 (7 U.S.C. 5621(d)(1)(C)(ii)) is amended by striking ‘emerging democracies’ and inserting ‘emerging markets’.

      (3) Section 202(d)(3)(B) of the Agricultural Trade Act of 1978 (7 U.S.C. 5622(d)(3)(B)) is amended by striking ‘emerging democracies’ and inserting ‘emerging markets’.

SEC. 269. IMPORT ASSISTANCE FOR CBI BENEFICIARY COUNTRIES AND THE PHILIPPINES.

    Section 583 of Public Law 100-202 (101 Stat. 1329-182) is repealed.

SEC. 270. STUDIES, REPORTS, AND OTHER PROVISIONS.

    (a) IN GENERAL- Sections 1551 through 1555, section 1559, and section 1560 of subtitle E of title XV of the Food, Agriculture, Conservation, and Trade Act of 1990 (Public Law 101-624; 104 Stat. 3696) are repealed.

    (b) LANGUAGE PROFICIENCY- Section 1556 of the Food, Agriculture, Conservation, and Trade Act of 1990 (Public Law 101-624; 7 U.S.C. 5694 note) is amended by striking subsection (c).

SEC. 271. IMPLEMENTATION OF COMMITMENTS UNDER URUGUAY ROUND AGREEMENTS.

    Part III of subtitle A of title IV of the Uruguay Round Agreements Act (Public Law 103-465; 108 Stat. 4964) is amended by adding at the end the following:

‘SEC. 427. IMPLEMENTATION OF COMMITMENTS UNDER URUGUAY ROUND AGREEMENTS.

    ‘Not later than September 30 of each fiscal year, the Secretary of Agriculture shall determine whether the obligations undertaken by foreign countries under the Uruguay Round Agreement on Agriculture are being fully implemented. If the Secretary of Agriculture determines that any foreign country, by not implementing the obligations of the country, is significantly constraining an opportunity for United States agricultural exports, the Secretary shall--

      ‘(1) submit to the United States Trade Representative a recommendation as to whether the President should take action under any provision of law; and

      ‘(2) transmit a copy of the recommendation to the Committee on Agriculture, and the Committee on Ways and Means, of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry, and the Committee on Finance, of the Senate.’.

SEC. 272. SENSE OF CONGRESS CONCERNING MULTILATERAL DISCIPLINES ON CREDIT GUARANTEES.

    It is the sense of Congress that--

      (1) in negotiations to establish multilateral disciplines on agricultural export credits and credit guarantees, the United States should not agree to any arrangement that is incompatible with the provisions of United States law that authorize agricultural export credits and credit guarantees;

      (2) in the negotiations (which are held under the auspices of the Organization for Economic Cooperation and Development), the United States should not reach any agreement that fails to impose disciplines on the practices of foreign government trading entities such as the Australian Wheat Board and Canadian Wheat Board; and

      (3) the disciplines should include greater openness in the operations of the entities as long as the entities are subsidized by the foreign government or have monopolies for exports of a commodity that are sanctioned by the foreign government.

SEC. 273. FOREIGN MARKET DEVELOPMENT COOPERATOR PROGRAM.

    The Agricultural Trade Act of 1978 (7 U.S.C. 5601 et seq.) is amended by adding at the end the following:

‘TITLE VII--FOREIGN MARKET DEVELOPMENT COOPERATOR PROGRAM

‘SEC. 701. DEFINITION OF ELIGIBLE TRADE ORGANIZATION.

    ‘In this title, the term ‘eligible trade organization’ means a United States trade organization that--

      ‘(1) promotes the export of 1 or more United States agricultural commodities or products; and

      ‘(2) does not have a business interest in or receive remuneration from specific sales of agricultural commodities or products.

‘SEC. 702. FOREIGN MARKET DEVELOPMENT COOPERATOR PROGRAM.

    ‘(a) IN GENERAL- The Secretary shall establish and, in cooperation with eligible trade organizations, carry out a foreign market development cooperator program to maintain and develop foreign markets for United States agricultural commodities and products.

    ‘(b) ADMINISTRATION- Funds made available to carry out this title shall be used only to provide--

      ‘(1) cost-share assistance to an eligible trade organization under a contract or agreement with the organization; and

      ‘(2) assistance for other costs that are necessary or appropriate to carry out the foreign market development cooperator program, including contingent liabilities that are not otherwise funded.

‘SEC. 703. AUTHORIZATION OF APPROPRIATIONS.

    ‘There are authorized to be appropriated to carry out this title such sums as may be necessary for each of fiscal years 1996 through 2002.’.

SEC. 274. PRICE SUPPORT FOR RICE.

    Section 101 of the Agricultural Act of 1949 is amended by adding a subsection (e) that reads as follows:

    ‘(e) RICE- The Secretary shall make available to producers of each crop of rice on a farm price support at a level that is not less than 50%, or more than 90% of the parity price for rice as the Secretary determines will not result in increasing stocks of rice to the Commodity Credit Corporation.’.

TITLE III--CONSERVATION

Subtitle A--Definitions

SEC. 301. DEFINITIONS.

    Section 1201(a) of the Food Security Act of 1985 (16 U.S.C. 3801(a)) is amended--

      (1) by redesignating paragraphs (3) through (16) as paragraphs (4) through (17), respectively; and

      (2) by inserting after paragraph (2) the following:

      ‘(3) CONSERVATION SYSTEM- The term ‘conservation system’ means the conservation measures and practices that are approved for application by a producer to a highly erodible field and that provide for cost effective and practical erosion reduction on the field based on local resource conditions and standards contained in the Natural Resources Conservation Service field office technical guide.’.

Subtitle B--Environmental Conservation Acreage Reserve Program

SEC. 311. ENVIRONMENTAL CONSERVATION ACREAGE RESERVE PROGRAM.

    Section 1230 of the Food Security Act of 1985 (16 U.S.C. 3830) is amended to read as follows:

‘SEC. 1230. ENVIRONMENTAL CONSERVATION ACREAGE RESERVE PROGRAM.

    ‘(a) ESTABLISHMENT-

      ‘(1) IN GENERAL- During the 1996 through 2002 calendar years, the Secretary shall establish an environmental conservation acreage reserve program (referred to in this section as ‘ECARP’) to be implemented through contracts and the acquisition of easements to assist owners and operators of farms and ranches to conserve and enhance soil, water, and related natural resources, including grazing land, wetland, and wildlife habitat.

      ‘(2) MEANS- The Secretary shall carry out the ECARP by--

        ‘(A) providing for the long-term protection of environmentally sensitive land; and

        ‘(B) providing technical and financial assistance to farmers and ranchers to--

          ‘(i) improve the management and operation of the farms and ranches; and

          ‘(ii) reconcile productivity and profitability with protection and enhancement of the environment.

      ‘(3) PROGRAMS- The ECARP shall consist of--

        ‘(A) the conservation reserve program established under subchapter B;

        ‘(B) the wetlands reserve program established under subchapter C;

        ‘(C) the environmental quality incentives program established under chapter 4; and

        ‘(D) a farmland protection program under which the Secretary shall use funds of the Commodity Credit Corporation for the purchase of conservation easements or other interests in not less than 170,000, nor more than 340,000, acres of land with prime, unique, or other productive soil that is subject to a pending offer from a State or local government for the purpose of protecting topsoil by limiting nonagricultural uses of the land, except that any highly erodible cropland shall be subject to the requirements of a conservation plan, including, if required by the Secretary, the conversion of the land to less intensive uses. In no case shall total expenditures of funding from the Commodity Credit Corporation exceed a total of $35,000,000 over the first 3 and subsequent fiscal years.

    ‘(b) ADMINISTRATION-

      ‘(1) IN GENERAL- In carrying out the ECARP, the Secretary shall enter into contracts with owners and operators and acquire interests in land through easements from owners, as provided in this chapter and chapter 4.

      ‘(2) PRIOR ENROLLMENTS- Acreage enrolled in the conservation reserve or wetlands reserve program prior to the effective date of this paragraph shall be considered to be placed into the ECARP.

    ‘(c) CONSERVATION PRIORITY AREAS-

      ‘(1) DESIGNATION-

        ‘(A) IN GENERAL- The Secretary shall designate watersheds or regions of special environmental sensitivity, including the Chesapeake Bay Region (consisting of Pennsylvania, Maryland, and Virginia), the Great Lakes Region, the Rainwater Basin Region, the Lake Champlain Basin, the Prairie Pothole Region, and the Long Island Sound Region, as conservation priority areas that are eligible for enhanced assistance through the programs established under this chapter and chapter 4.

        ‘(B) APPLICATION- A designation shall be made under this paragraph if agricultural practices on land within the watershed or region pose a significant threat to soil, water, and related natural resources, as determined by the Secretary, and an application is made by--

          ‘(i) a State agency in consultation with the State technical committee established under section 1261; or

          ‘(ii) State agencies from several States that agree to form an interstate conservation priority area.

        ‘(C) ASSISTANCE- The Secretary shall designate a watershed or region of special environmental sensitivity as a conservation priority area to assist, to the maximum extent practicable, agricultural producers within the watershed or region to comply with nonpoint source pollution requirements under the Federal Water Pollution Control Act (33 U.S.C. 1251 et seq.) and other Federal and State environmental laws.

      ‘(2) APPLICABILITY- The Secretary shall designate a watershed or region of special environmental sensitivity as a conservation priority area in a manner that conforms, to the maximum extent practicable, to the functions and purposes of the conservation reserve, wetlands reserve, and environmental quality incentives programs, as applicable, if participation in the program or programs is likely to result in the resolution or amelioration of significant soil, water, and related natural resource problems related to agricultural production activities within the watershed or region.

      ‘(3) TERMINATION- A conservation priority area designation shall terminate on the date that is 5 years after the date of the designation, except that the Secretary may--

        ‘(A) redesignate the area as a conservation priority area; or

        ‘(B) withdraw the designation of a watershed or region if the Secretary determines the area is no longer affected by significant soil,water, and related natural resource impacts related to agricultural production activities.’.

SEC. 312. CONSERVATION RESERVE PROGRAM.

    (a) IN GENERAL- Section 1231 of the Food Security Act of 1985 (16 U.S.C. 3831) is amended--

      (1) by striking ‘1995’ each place it appears and inserting ‘2002’; and

      (2) in subsection (d), by striking ‘38,000,000’ and inserting ‘36,520,000’.

    (b) DUTIES OF OWNERS AND OPERATORS- Section 1232(c) of the Food Security Act of 1985 (16 U.S.C. 3832(c)) is amended by striking ‘1995’ and inserting ‘2002’.

    (c) RELATIONSHIP TO OTHER LAW- The authority granted to the Secretary of Agriculture as a result of the amendments made by this section shall supersede any restriction on the operation of the conservation reserve program established under any other provision of law.

SEC. 313. WETLANDS RESERVE PROGRAM.

    (a) PURPOSES- Section 1237(a) of the Food Security Act of 1985 (16 U.S.C. 3837(a)) is amended by striking ‘to assist owners of eligible lands in restoring and protecting wetlands’ and inserting ‘to protect wetlands for purposes of enhancing water quality and providing wildlife benefits while recognizing landowner rights’.

    (b) ENROLLMENT- Section 1237 of the Food Security Act of 1985 (16 U.S.C. 3837) is amended by striking subsection (b) and inserting the following:

    ‘(b) MINIMUM ENROLLMENT- The Secretary shall enroll into the wetlands reserve program--

      ‘(1) during the 1996 through 2002 calendar years, a total of not more than 975,000 acres; and

      ‘(2) beginning with offers accepted by the Secretary during calendar year 1997, to the maximum extent practicable, 1/3 of the acres in permanent easements, 1/3 of the acres in 30-year easements, and 1/3 of the acres in restoration cost-share agreements.’.

    (c) ELIGIBILITY- Section 1237(c) of the Food Security Act of 1985 (16 U.S.C. 3837(c)) is amended--

      (1) by striking ‘2000’ and inserting ‘2002’; and

      (2) by inserting ‘the land maximizes wildlife benefits and wetland values and functions and’ after ‘determines that’.

    (d) OTHER ELIGIBLE LANDS- Section 1237(d) (16 U.S.C. 3837(d)) is amended by inserting after ‘subsection (c)’ the following ‘, land that maximizes wildlife benefits and that is’.

    (e) EASEMENTS- Section 1237A of the Food Security Act of 1985 (16 U.S.C. 3837a) is amended--

      (1) in the section heading, by inserting before the period at the end the following: ‘and agreements’;

      (2) by striking subsection (c) and inserting the following:

    ‘(c) RESTORATION PLANS- The development of a restoration plan, including any compatible use, under this section shall be made through the local Natural Resources Conservation Service representative, in consultation with the State technical committee.’;

      (3) in subsection (f), by striking the third sentence and inserting the following: ‘Compensation may be provided in not less than 5, nor more than 30, annual payments of equal or unequal size, as agreed to by the owner and the Secretary.’; and

      (4) by adding at the end the following:

    ‘(h) COST SHARE AGREEMENTS- The Secretary may enroll land into the wetland reserve through agreements that require the landowner to restore wetlands on the land, if the agreement does not provide the Secretary with an easement.’.

    (f) COST SHARE AND TECHNICAL ASSISTANCE- Section 1237C of the Food Security Act of 1985 (16 U.S.C. 3837c) is amended by striking subsection (b) and inserting the following:

    ‘(b) COST SHARE AND TECHNICAL ASSISTANCE- In the case of an easement entered into during the 1996 through 2002 calendar years, in making cost share payments under subsection (a)(1), the Secretary shall--

      ‘(1) in the case of a permanent easement, pay the owner an amount that is not less than 75 percent, but not more than 100 percent, of the eligible costs;

      ‘(2) in the case of a 30-year easement or a cost-share agreement, pay the owner an amount that is not less than 50 percent, but not more than 75 percent, of the eligible costs; and

      ‘(3) provide owners technical assistance to assist landowners in complying with the terms of easements and agreements.’.

SEC. 314. ENVIRONMENTAL QUALITY INCENTIVES PROGRAM.

    Subtitle D of title XII of the Food Security Act of 1985 (16 U.S.C. 3830 et seq.) is amended by adding at the end the following:

‘CHAPTER 4--ENVIRONMENTAL QUALITY INCENTIVES PROGRAM

‘SEC. 1238. FINDINGS AND PURPOSES.

    ‘(a) FINDINGS- Congress finds that--

      ‘(1) farmers and ranchers cumulatively manage more than 1/2 of the private lands in the continental United States;

      ‘(2) because of the predominance of agriculture, the soil, water, and related natural resources of the United States cannot be protected without cooperative relationships between the Federal Government and farmers and ranchers;

      ‘(3) farmers and ranchers have made tremendous progress in protecting the environment and the agricultural resource base of the United States over the past decade because of not only Federal Government programs but also their spirit of stewardship and the adoption of effective technologies;

      ‘(4) it is in the interest of the entire United States that farmers and ranchers continue to strive to preserve soil resources and make more efforts to protect water quality and wildlife habitat, and address other broad environmental concerns;

      ‘(5) environmental strategies that stress the prudent management of resources, as opposed to idling land, will permit the maximum economic opportunities for farmers and ranchers in the future;

      ‘(6) unnecessary bureaucratic and paperwork barriers associated with existing agricultural conservation assistance programs decrease the potential effectiveness of the programs; and

      ‘(7) the recent trend of Federal spending on agricultural conservation programs suggests that assistance to farmers and ranchers in future years will, absent changes in policy, dwindle to perilously low levels.

    ‘(b) PURPOSES- The purposes of the environmental quality incentives program established by this chapter are to--

      ‘(1) combine into a single program the functions of--

        ‘(A) the agricultural conservation program authorized by sections 7 and 8 of the Soil Conservation and Domestic Allotment Act (16 U.S.C. 590g and 590h) (as in effect before the amendments made by section 355(a)(1) of the Agricultural Reform and Improvement Act of 1996);

        ‘(B) the Great Plains conservation program established under section 16(b) of the Soil Conservation and Domestic Allotment Act (16 U.S.C. 590p(b)) (as in effect before the amendment made by section 355(b)(1) of the Agricultural Reform and Improvement Act of 1996); and

        ‘(C) the water quality incentives program established under chapter 2 (as in effect before the amendment made by section 355(k) of the Agricultural Reform and Improvement Act of 1996); and

        ‘(C) the Colorado River Basin salinity control program established under section 202(c) of the Colorado River Basin Salinity Control Act (43 U.S.C. 1592(c)) (as in effect before the amendment made by section 355(c)(1) of the Agricultural Reform and Improvement Act of 1996); and

      ‘(2) carry out the single program in a manner that maximizes environmental benefits per dollar expended, and that provides--

        ‘(A) flexible technical and financial assistance to farmers and ranchers that face the most serious threats to soil, water, and related natural resources, including grazing lands, wetlands, and wildlife habitat;

        ‘(B) assistance to farmers and ranchers in complying with this title and Federal and State environmental laws, and to encourage environmental enhancement;

        ‘(C) assistance to farmers and ranchers in making beneficial, cost-effective changes to cropping systems, grazing management, manure, nutrient, pest, or irrigation management, land uses, or other measures needed to conserve and improve soil, water, and related natural resources; and

        ‘(D) for the consolidation and simplification of the conservation planning process to reduce administrative burdens on the owners and operators of farms and ranches.

‘SEC. 1238A. DEFINITIONS.

    ‘In this chapter:

      ‘(1) LAND MANAGEMENT PRACTICE- The term ‘land management practice’ means nutrient or manure management, integrated pest management, irrigation management, tillage or residue management, grazing management, or another land management practice the Secretary determines is needed to protect soil, water, or related resources in the most cost effective manner.

      ‘(2) LARGE CONFINED LIVESTOCK OPERATION- The term ‘large confined livestock operation’ means a farm or ranch that--

        ‘(A) is a confined animal feeding operation; and

        ‘(B) has more than--

          ‘(i) 700 mature dairy cattle;

          ‘(ii) 1,000 beef cattle;

          ‘(iii) 100,000 laying hens or broilers;

          ‘(iv) 55,000 turkeys;

          ‘(v) 2,500 swine; or

          ‘(vi) 10,000 sheep or lambs.

      ‘(3) LIVESTOCK- The term ‘livestock’ means mature dairy cows, beef cattle, laying hens, broilers, turkeys, swine, sheep, or lambs.

      ‘(4) OPERATOR- The term ‘operator’ means a person who is engaged in crop or livestock production (as defined by the Secretary).

      ‘(5) STRUCTURAL PRACTICE- The term ‘structural practice’ means the establishment of an animal waste management facility, terrace, grassed waterway, contour grass strip, filterstrip, permanent wildlife habitat, or another structural practice that the Secretary determines is needed to protect soil, water, or related resources in the most cost effective manner.

‘SEC. 1238B. ESTABLISHMENT AND ADMINISTRATION OF ENVIRONMENTAL QUALITY INCENTIVES PROGRAM.

    ‘(a) ESTABLISHMENT-

      ‘(1) IN GENERAL- During the 1996 through 2002 fiscal years, the Secretary shall provide technical assistance, cost-sharing payments, and incentive payments, education to operators, who enter into contracts with the Secretary, through an environmental quality incentives program in accordance with this chapter.

      ‘(2) ELIGIBLE PRACTICES-

        ‘(A) STRUCTURAL PRACTICES- An operator who implements a structural practice shall be eligible for technical assistance or cost-sharing payments, education or both.

        ‘(B) LAND MANAGEMENT PRACTICES- An operator who performs a land management practice shall be eligible for technical assistance or incentive payments, education or both.

    ‘(b) APPLICATION AND TERM- A contract between an operator and the Secretary under this chapter may--

      ‘(1) apply to 1 or more structural practices or 1 or more land management practices, or both; and

      ‘(2) have a term of not less than 5, nor more than 10, years, as determined appropriate by the Secretary, depending on the practice or practices that are the basis of the contract.

    ‘(c) STRUCTURAL PRACTICES-

      ‘(1) COMPETITIVE OFFER- The Secretary shall administer a competitive offer system for operators proposing to receive cost-sharing payments in exchange for the implementation of 1 or more structural practices by the operator. The competitive offer system shall consist of--

        ‘(A) the submission of a competitive offer by the operator in such manner as the Secretary may prescribe; and

        ‘(B) evaluation of the offer in light of the priorities established in section 1238C and the projected cost of the proposal, as determined by the Secretary.

      ‘(2) CONCURRENCE OF OWNER- If the operator making an offer to implement a structural practice is a tenant of the land involved in agricultural production, for the offer to be acceptable, the operator shall obtain the concurrence of the owner of the land with respect to the offer.

    ‘(d) LAND MANAGEMENT PRACTICES- The Secretary shall establish an application and evaluation process for awarding technical assistance or incentive payments, or both, to an operator in exchange for the performance of 1 or more land management practices by the operator.

    ‘(e) COST-SHARING AND INCENTIVE PAYMENTS-

      ‘(1) COST-SHARING PAYMENTS-

        ‘(A) IN GENERAL- The Federal share of cost-sharing payments to an operator proposing to implement 1 or more structural practices shall not be more than 75 percent of the projected cost of the practice, as determined by the Secretary, taking into consideration any payment received by the operator from a State or local government.

        ‘(B) LIMITATION- An operator of a large confined livestock operation shall not be eligible for cost-sharing payments to construct an animal waste management facility.

        ‘(C) OTHER PAYMENTS- An operator shall not be eligible for cost-sharing payments for structural practices on eligible land under this chapter if the operator receives cost-sharing payments or other benefits for the same land under chapter 1 or 3.

      ‘(2) INCENTIVE PAYMENTS- The Secretary shall make incentive payments in an amount and at a rate determined by the Secretary to be necessary to encourage an operator to perform 1 or more land management practices.

    ‘(f) TECHNICAL ASSISTANCE-

      ‘(1) FUNDING- The Secretary shall allocate funding under this chapter for the provision of technical assistance according to the purpose and projected cost for which the technical assistance is provided in a fiscal year. The allocated amount may vary according to the type of expertise required, quantity of time involved, and other factors as determined appropriate by the Secretary. Funding shall not exceed the projected cost to the Secretary of the technical assistance provided in a fiscal year.

      ‘(2) OTHER AUTHORITIES- The receipt of technical assistance under this chapter shall not affect the eligibility of the operator to receive technical assistance under other authorities of law available to the Secretary.

    ‘(g) MODIFICATION OR TERMINATION OF CONTRACTS-

      ‘(1) VOLUNTARY MODIFICATION OR TERMINATION- The Secretary may modify or terminate a contract entered into with an operator under this chapter if--

        ‘(A) the operator agrees to the modification or termination; and

        ‘(B) the Secretary determines that the modification or termination is in the public interest.

      ‘(2) INVOLUNTARY TERMINATION- The Secretary may terminate a contract under this chapter if the Secretary determines that the operator violated the contract.

    ‘(h) NON-FEDERAL ASSISTANCE-

      ‘(1) IN GENERAL- The Secretary may request the services of a State water quality agency, State fish and wildlife agency, State forestry agency, or any other governmental or private resource considered appropriate to assist in providing the technical assistance necessary for the development and implementation of a structural practice or land management practice.

      ‘(2) LIMITATION ON LIABILITY- No person shall be permitted to bring or pursue any claim or action against any official or entity based on or resulting from any technical assistance provided to an operator under this chapter to assist in complying with a Federal or State environmental law.

‘SEC. 1238C. EVALUATION OF OFFERS AND PAYMENTS.

    ‘(a) REGIONAL PRIORITIES- The Secretary shall provide technical assistance, cost-sharing payments, and incentive payments to operators in a region, watershed, or conservation priority area under this chapter based on the significance of the soil, water, and related natural resource problems in the region, watershed, or area, and the structural practices or land management practices that best address the problems, as determined by the Secretary.

    ‘(b) MAXIMIZATION OF ENVIRONMENTAL BENEFITS-

      ‘(1) IN GENERAL- In providing technical assistance, cost-sharing payments, and incentive payments to operators in regions, watersheds, or conservation priority areas under this chapter, the Secretary shall accord a higher priority to assistance and payments that maximize environmental benefits per dollar expended.

      ‘(2) NATIONAL AND REGIONAL PRIORITY- The prioritization shall be done nationally as well as within the conservation priority area, region, or watershed in which an agricultural operation is located.

      ‘(3) CRITERIA- To carry out this subsection, the Secretary shall establish criteria for implementing structural practices and land management practices that best achieve conservation goals for a region, watershed, or conservation priority area, as determined by the Secretary.

    ‘(c) STATE OR LOCAL CONTRIBUTIONS- The Secretary shall accord a higher priority to operators whose agricultural operations are located within watersheds, regions, or conservation priority areas in which State or local governments have provided, or will provide, financial or technical assistance to the operators for the same conservation or environmental purposes.

    ‘(d) PRIORITY LANDS- The Secretary shall accord a higher priority to structural practices or land management practices on lands on which agricultural production has been determined to contribute to, or create, the potential for failure to meet applicable water quality standards or other environmental objectives of a Federal or State law.

‘SEC. 1238D. DUTIES OF OPERATORS.

    ‘To receive technical assistance, cost-sharing payments, or incentives payments under this chapter, an operator shall agree--

      ‘(1) to implement an environmental quality incentives program plan that describes conservation and environmental goals to be achieved through a structural practice or land management practice, or both, that is approved by the Secretary;

      ‘(2) not to conduct any practices on the farm or ranch that would tend to defeat the purposes of this chapter;

      ‘(3) on the violation of a term or condition of the contract at any time the operator has control of the land, to refund any cost-sharing or incentive payment received with interest, and forfeit any future payments under this chapter, as determined by the Secretary;

      ‘(4) on the transfer of the right and interest of the operator in land subject to the contract, unless the transferee of the right and interest agrees with the Secretary to assume all obligations of the contract, to refund all cost-sharing payments and incentive payments received under this chapter, as determined by the Secretary;

      ‘(5) to supply information as required by the Secretary to determine compliance with the environmental quality incentives program plan and requirements of the program; and

      ‘(6) to comply with such additional provisions as the Secretary determines are necessary to carry out the environmental quality incentives program plan.

‘SEC. 1238E. ENVIRONMENTAL QUALITY INCENTIVES PROGRAM PLAN.

    ‘An environmental quality incentives program plan shall include (as determined by the Secretary)--

      ‘(1) a description of the prevailing farm or ranch enterprises, cropping patterns, grazing management, cultural practices, or other information that may be relevant to conserving and enhancing soil, water, and related natural resources;

      ‘(2) a description of relevant farm or ranch resources, including soil characteristics, rangeland types and condition, proximity to water bodies, wildlife habitat, or other relevant characteristics of the farm or ranch related to the conservation and environmental objectives set forth in the plan;

      ‘(3) a description of specific conservation and environmental objectives to be achieved;

      ‘(4) to the extent practicable, specific, quantitative goals for achieving the conservation and environmental objectives;

      ‘(5) a description of 1 or more structural practices or 1 or more land management practices, or both, to be implemented to achieve the conservation and environmental objectives;

      ‘(6) a description of the timing and sequence for implementing the structural practices or land management practices, or both, that will assist the operator in complying with Federal and State environmental laws; and

      ‘(7) information that will enable evaluation of the effectiveness of the plan in achieving the conservation and environmental objectives, and that will enable evaluation of the degree to which the plan has been implemented.

      ‘(8) Not withstanding any provision of law, the Secretary shall ensure that the process of writing, developing, and assisting in the implementation of plans required in the programs established under this title be open to individuals in agribusiness including but not limited to agricultural producers, representatives from agricultural cooperatives, agricultural input retail dealers, and certified crop advisers. This process shall be included in but not limited to programs and plans established under this title and any other Department program using incentive, technical assistance, cost-share or pilot project programs that require plans.

‘SEC. 1238F. DUTIES OF THE SECRETARY.

    ‘To the extent appropriate, the Secretary shall assist an operator in achieving the conservation and environmental goals of an environmental quality incentives program plan by--

      ‘(1) providing an eligibility assessment of the farming or ranching operation of the operator as a basis for developing the plan;

      ‘(2) providing technical assistance in developing and implementing the plan;

      ‘(3) providing technical assistance, cost-sharing payments, or incentive payments for developing and implementing 1 or more structural practices or 1 or more land management practices, as appropriate;

      ‘(4) providing the operator with information, education, and training to aid in implementation of the plan; and

      ‘(5) encouraging the operator to obtain technical assistance, cost-sharing payments, or grants from other Federal, State, local, or private sources.

‘SEC. 1238G. ELIGIBLE LANDS.

    ‘Agricultural land on which a structural practice or land management practice, or both, shall be eligible for technical assistance, cost-sharing payments, or incentive payments under this chapter include--

      ‘(1) agricultural land (including cropland, rangeland, pasture, and other land on which crops or livestock are produced) that the Secretary determines poses a serious threat to soil, water, or related resources by reason of the soil types, terrain, climatic, soil, topographic, flood, or saline characteristics, or other factors or natural hazards;

      ‘(2) an area that is considered to be critical agricultural land on which either crop or livestock production is carried out, as identified in a plan submitted by the State under section 319 of the Federal Water Pollution Control Act (33 U.S.C. 1329) as having priority problems that result from an agricultural nonpoint source of pollution;

      ‘(3) an area recommended by a State lead agency for protection of soil, water, and related resources, as designated by a Governor of a State; and

      ‘(4) land that is not located within a designated or approved area, but that if permitted to continue to be operated under existing management practices, would defeat the purpose of the environmental quality incentives program, as determined by the Secretary.

‘SEC. 1238H. LIMITATIONS ON PAYMENTS.

    ‘(a) PAYMENTS- The total amount of cost-sharing and incentive payments paid to a person under this chapter may not exceed--

      ‘(1) $10,000 for any fiscal year; or

      ‘(2) $50,000 for any multiyear contract.

    ‘(b) REGULATIONS- The Secretary shall issue regulations that are consistent with section 1001 for the purpose of--

      ‘(1) defining the term ‘person’ as used in subsection (a); and

      ‘(2) prescribing such rules as the Secretary determines necessary to ensure a fair and reasonable application of the limitations contained in subsection (a).’.

Subtitle C--Conservation Funding

SEC. 321. CONSERVATION FUNDING.

    (a) IN GENERAL- Subtitle E of title XII of the Food Security Act of 1985 (16 U.S.C. 3841 et seq.) is amended to read as follows:

‘Subtitle E--Funding

‘SEC. 1241. FUNDING.

    ‘(a) MANDATORY EXPENSES- For each of fiscal years 1996 through 2002, the Secretary shall use the funds of the Commodity Credit Corporation to carry out the programs authorized by--

      ‘(1) subchapter B of chapter 1 of subtitle D (including contracts extended by the Secretary pursuant to section 1437 of the Food, Agriculture, Conservation, and Trade Act of 1990 (Public Law 101-624; 16 U.S.C. 3831 note));

      ‘(2) subchapter C of chapter 1 of subtitle D; and

      ‘(3) chapter 4 of subtitle D.

    ‘(b) ENVIRONMENTAL QUALITY INCENTIVES PROGRAM-

      ‘(1) IN GENERAL- For each of fiscal years 1996 through 2002, $200,000,000 of the funds of the Commodity Credit Corporation shall be available for providing technical assistance, cost-sharing payments, and incentive payments under the environmental quality incentives program under chapter 4 of subtitle D.

      ‘(2) LIVESTOCK PRODUCTION- For each of fiscal years 1996 through 2002, 50 percent of the funding available for technical assistance, cost-sharing payments, and incentive payments under the environmental quality incentives program shall be targeted at practices relating to livestock production.

    ‘(c) ADVANCE APPROPRIATIONS TO CCC- The Secretary may use the funds of the Commodity Credit Corporation to carry out chapter 3 of subtitle D, except that the Secretary may not use the funds of the Corporation unless the Corporation has received funds to cover the expenditures from appropriations made available to carry out chapter 3 of subtitle D.

‘SEC. 1242. ADMINISTRATION.

    ‘(a) PLANS- The Secretary shall, to the extent practicable, avoid duplication in--

      ‘(1) the conservation plans required for--

        ‘(A) highly erodible land conservation under subtitle B;

        ‘(B) the conservation reserve program established under subchapter B of chapter 1 of subtitle D; and

        ‘(C) the wetlands reserve program established under subchapter C of chapter 1 of subtitle D; and

      ‘(2) the environmental quality incentives program established under chapter 4 of subtitle D.

    ‘(b) ACREAGE LIMITATION-

      ‘(1) IN GENERAL- The Secretary shall not enroll more than 25 percent of the cropland in any county in the programs administered under the conservation reserve and wetlands reserve programs established under subchapters B and C, respectively, of chapter 1 of subtitle D. Not more than 10 percent of the cropland in a county may be subject to an easement acquired under the subchapters.

      ‘(2) EXCEPTION- The Secretary may exceed the limitations in paragraph (1) if the Secretary determines that--

        ‘(A) the action would not adversely affect the local economy of a county; and

        ‘(B) operators in the county are having difficulties complying with conservation plans implemented under section 1212.

      ‘(3) SHELTERBELTS AND WINDBREAKS- The limitations established under this subsection shall not apply to cropland that is subject to an easement under chapter 1 or 3 of subtitle D that is used for the establishment of shelterbelts and windbreaks.

    ‘(c) TENANT PROTECTION- Except for a person who is a tenant on land that is subject to a conservation reserve contract that has been extended by the Secretary, the Secretary shall provide adequate safeguards to protect the interests of tenants and sharecroppers, including provision for sharing, on a fair and equitable basis, in payments under the programs established under subtitles B through D.

    ‘(d) REGULATIONS- Not later than 90 days after the effective date of this subsection, the Secretary shall issue regulations to implement the conservation reserve and wetlands reserve programs established under chapter 1 of subtitle D.’.

Subtitle D--National Natural Resources Conservation Foundation

SEC. 331. SHORT TITLE.

    This subtitle may be cited as the ‘National Natural Resources Conservation Foundation Act’.

SEC. 332. DEFINITIONS.

    In this subtitle (unless the context otherwise requires):

      (1) BOARD- The term ‘Board’ means the Board of Trustees established under section 334.

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

      (3) FOUNDATION- The term ‘Foundation’ means the National Natural Resources Conservation Foundation established by section 333(a).

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

SEC. 333. NATIONAL NATURAL RESOURCES CONSERVATION FOUNDATION.

    (a) ESTABLISHMENT- A National Natural Resources Conservation Foundation is established as a charitable and nonprofit corporation for charitable, scientific, and educational purposes specified in subsection (b). The Foundation is not an agency or instrumentality of the United States.

    (b) PURPOSES- The purposes of the Foundation are to--

      (1) promote innovative solutions to the problems associated with the conservation of natural resources on private lands, particularly with respect to agriculture and soil and water conservation;

      (2) promote voluntary partnerships between government and private interests in the conservation of natural resources;

      (3) conduct research and undertake educational activities, conduct and support demonstration projects, and make grants to State and local agencies and nonprofit organizations;

      (4) provide such other leadership and support as may be necessary to address conservation challenges, such as the prevention of excessive soil erosion, enhancement of soil and water quality, and the protection of wetlands, wildlife habitat, and strategically important farmland subject to urban conversion and fragmentation;

      (5) encourage, accept, and administer private gifts of money and real and personal property for the benefit of, or in connection with, the conservation and related activities and services of the Department, particularly the Natural Resources Conservation Service;

      (6) undertake, conduct, and encourage educational, technical, and other assistance, and other activities, that support the conservation and related programs administered by the Department (other than activities carried out on National Forest System lands), particularly the Natural Resources Conservation Service, except that the Foundation may not enforce or administer a regulation of the Department; and

      (7) raise private funds to promote the purposes of the Foundation.

    (c) LIMITATIONS AND CONFLICTS OF INTERESTS-

      (1) POLITICAL ACTIVITIES- The Foundation shall not participate or intervene in a political campaign on behalf of any candidate for public office.

      (2) CONFLICTS OF INTEREST- No director, officer, or employee of the Foundation shall participate, directly or indirectly, in the consideration or determination of any question before the Foundation affecting--

        (A) the financial interests of the director, officer, or employee; or

        (B) the interests of any corporation, partnership, entity, organization, or other person in which the director, officer, or employee--

          (i) is an officer, director, or trustee; or

          (ii) has any direct or indirect financial interest.

      (3) LEGISLATION OR GOVERNMENT ACTION OR POLICY- No funds of the Foundation may be used in any manner for the purpose of influencing legislation or government action or policy.

      (4) LITIGATION- No funds of the Foundation may be used to bring or join an action against the United States or any State.

SEC. 334. COMPOSITION AND OPERATION.

    (a) COMPOSITION- The Foundation shall be administered by a Board of Trustees that shall consist of 9 voting members, each of whom shall be a United States citizen and not a Federal officer. The Board shall be composed of--

      (1) individuals with expertise in agricultural conservation policy matters;

      (2) a representative of private sector organizations with a demonstrable interest in natural resources conservation;

      (3) a representative of statewide conservation organizations;

      (4) a representative of soil and water conservation districts;

      (5) a representative of organizations outside the Federal Government that are dedicated to natural resources conservation education; and

      (6) a farmer or rancher.

    (b) NONGOVERNMENTAL EMPLOYEES- Service as a member of the Board shall not constitute employment by, or the holding of, an office of the United States for the purposes of any Federal law.

    (c) MEMBERSHIP-

      (1) INITIAL MEMBERS- The Secretary shall appoint 9 persons who meet the criteria established under subsection (a) as the initial members of the Board and designate 1 of the members as the initial chairperson for a 2-year term.

      (2) TERMS OF OFFICE-

        (A) IN GENERAL- A member of the Board shall serve for a term of 3 years, except that the members appointed to the initial Board shall serve, proportionately, for terms of 1, 2, and 3 years, as determined by the Secretary.

        (B) LIMITATION ON TERMS- No individual may serve more than 2 consecutive 3-year terms as a member.

      (3) SUBSEQUENT MEMBERS- The initial members of the Board shall adopt procedures in the constitution of the Foundation for the nomination and selection of subsequent members of the Board. The procedures shall require that each member, at a minimum, meets the criteria established under subsection (a) and shall provide for the selection of an individual, who is not a Federal officer or a member of the Board.

    (d) CHAIRPERSON- After the appointment of an initial chairperson under subsection (c)(1), each succeeding chairperson of the Board shall be elected by the members of the Board for a 2-year term.

    (e) VACANCIES- A vacancy on the Board shall be filled by the Board not later than 60 days after the occurrence of the vacancy.

    (f) COMPENSATION- A member of the Board shall receive no compensation from the Foundation for the service of the member on the Board.

    (g) TRAVEL EXPENSES- While away from the home or regular place of business of a member of the Board in the performance of services for the Board, the member shall be allowed travel expenses paid by the Foundation, including per diem in lieu of subsistence, at the same rate as a person employed intermittently in the Government service would be allowed under section 5703 of title 5, United States Code.

SEC. 335. OFFICERS AND EMPLOYEES.

    (a) IN GENERAL- The Board may--

      (1) appoint, hire, and discharge the officers and employees of the Foundation, other than the appointment of the initial Executive Director of the Foundation;

      (2) adopt a constitution and bylaws for the Foundation that are consistent with the purposes of the Foundation and this subtitle; and

      (3) undertake any other activities that may be necessary to carry out this subtitle.

    (b) OFFICERS AND EMPLOYEES-

      (1) APPOINTMENT AND HIRING- An officer or employee of the Foundation--

        (A) shall not, by virtue of the appointment or employment of the officer or employee, be considered a Federal employee for any purpose, including the provisions of title 5, United States Code, governing appointments in the competitive service, except that such an individual may participate in the Federal employee retirement system as if the individual were a Federal employee; and

        (B) may not be paid by the Foundation a salary in excess of $125,000 per year.

      (2) EXECUTIVE DIRECTOR-

        (A) INITIAL DIRECTOR- The Secretary shall appoint an individual to serve as the initial Executive Director of the Foundation who shall serve, at the direction of the Board, as the chief operating officer of the Foundation.

        (B) SUBSEQUENT DIRECTORS- The Board shall appoint each subsequent Executive Director of the Foundation who shall serve, at the direction of the Board, as the chief operating officer of the Foundation.

        (C) QUALIFICATIONS- The Executive Director shall be knowledgeable and experienced in matters relating to natural resources conservation.

SEC. 336. CORPORATE POWERS AND OBLIGATIONS OF THE FOUNDATION.

    (a) IN GENERAL- The Foundation--

      (1) may conduct business throughout the United States and the territories and possessions of the United States; and

      (2) shall at all times maintain a designated agent who is authorized to accept service of process for the Foundation, so that the serving of notice to, or service of process on, the agent, or mailed to the business address of the agent, shall be considered as service on or notice to the Foundation.

    (b) SEAL- The Foundation shall have an official seal selected by the Board that shall be judicially noticed.

    (c) POWERS- To carry out the purposes of the Foundation under section 333(b), the Foundation shall have, in addition to the powers otherwise provided under this subtitle, the usual powers of a corporation, including the power--

      (1) to accept, receive, solicit, hold, administer, and use any gift, devise, or bequest, either absolutely or in trust, of real or personal property or any income from, or other interest in, the gift, devise, or bequest;

      (2) to acquire by purchase or exchange any real or personal property or interest in property, except that funds provided under section 310 may not be used to purchase an interest in real property;

      (3) unless otherwise required by instrument of transfer, to sell, donate, lease, invest, reinvest, retain, or otherwise dispose of any property or income from property;

      (4) to borrow money from private sources and issue bonds, debentures, or other debt instruments, subject to section 339, except that the aggregate amount of the borrowing and debt instruments outstanding at any time may not exceed $1,000,000;

      (5) to sue and be sued, and complain and defend itself, in any court of competent jurisdiction, except that a member of the Board shall not be personally liable for an action in the performance of services for the Board, except for gross negligence;

      (6) to enter into a contract or other agreement with an agency of State or local government, educational institution, or other private organization or person and to make such payments as may be necessary to carry out the functions of the Foundation; and

      (7) to do any and all acts that are necessary to carry out the purposes of the Foundation.

    (d) INTEREST IN PROPERTY-

      (1) IN GENERAL- The Foundation may acquire, hold, and dispose of lands, waters, or other interests in real property by donation, gift, devise, purchase, or exchange.

      (2) INTERESTS IN REAL PROPERTY- For purposes of this subtitle, an interest in real property shall be treated, among other things, as including an easement or other right for the preservation, conservation, protection, or enhancement of agricultural, natural, scenic, historic, scientific, educational, inspirational, or recreational resources.

      (3) GIFTS- A gift, devise, or bequest may be accepted by the Foundation even though the gift, devise, or bequest is encumbered, restricted, or subject to a beneficial interest of a private person if any current or future interest in the gift, devise, or bequest is for the benefit of the Foundation.

SEC. 337. ADMINISTRATIVE SERVICES AND SUPPORT.

    For each of fiscal years 1996 through 1998, the Secretary may provide, without reimbursement, personnel, facilities, and other administrative services of the Department to the Foundation.

SEC. 338. AUDITS AND PETITION OF ATTORNEY GENERAL FOR EQUITABLE RELIEF.

    (a) AUDITS-

      (1) IN GENERAL- The accounts of the Foundation shall be audited in accordance with Public Law 88-504 (36 U.S.C. 1101 et seq.), including an audit of lobbying and litigation activities carried out by the Foundation.

      (2) CONFORMING AMENDMENT- The first section of Public Law 88-504 (36 U.S.C. 1101) is amended by adding at the end the following:

      ‘(77) The National Natural Resources Conservation Foundation.’.

    (b) RELIEF WITH RESPECT TO CERTAIN FOUNDATION ACTS OR FAILURE TO ACT- The Attorney General may petition in the United States District Court for the District of Columbia for such equitable relief as may be necessary or appropriate, if the Foundation--

      (1) engages in, or threatens to engage in, any act, practice, or policy that is inconsistent with this subtitle; or

      (2) refuses, fails, neglects, or threatens to refuse, fail, or neglect, to discharge the obligations of the Foundation under this subtitle.

SEC. 339. RELEASE FROM LIABILITY.

    (a) IN GENERAL- The United States shall not be liable for any debt, default, act, or omission of the Foundation. The full faith and credit of the United States shall not extend to the Foundation.

    (b) STATEMENT- An obligation issued by the Foundation, and a document offering an obligation, shall include a prominent statement that the obligation is not directly or indirectly guaranteed, in whole or in part, by the United States (or an agency or instrumentality of the United States).

SEC. 340. AUTHORIZATION OF APPROPRIATIONS.

    There are authorized to be appropriated to the Department to be made available to the Foundation $1,000,000 for each of fiscal years 1997 through 1999 to initially establish and carry out activities of the Foundation.

Subtitle E--Miscellaneous

SEC. 351. FLOOD RISK REDUCTION.

    (a) IN GENERAL- During fiscal years 1996 through 2002, the Secretary of Agriculture (referred to in this section as the ‘Secretary’) may enter into a contract with contract acreage under title I on a farm with land that is frequently flooded.

    (b) DUTIES OF PRODUCERS- Under the terms of the contract, with respect to acres that are subject to the contract, the producer must agree to--

      (1) the termination of any contract acreage;

      (2) forgo loans for contract commodities, oilseeds, and extra long staple cotton;

      (3) not apply for crop insurance issued or reinsured by the Secretary;

      (4) comply with applicable wetlands and high erodible land conservation compliance requirements established under title XII of the Food Security Act of 1985 (16 U.S.C. 3801 et seq.);

      (5) not apply for any conservation program payments from the Secretary;

      (6) not apply for disaster program benefits provided by the Secretary; and

      (7) refund the payments, with interest, issued under the flood risk reduction contract to the Secretary, if the producer violates the terms of the contract or if the producer transfers the property to another person who violates the contract.

    (c) DUTIES OF SECRETARY- In return for a flood risk reduction contract entered into by a producer under this section, the Secretary shall agree to pay the producer for the 1996 through 2002 crops not more than 95 percent of the projected contract payments under title I, and not more than 95 percent of the projected payments and subsidies from the Federal Crop Insurance Corporation.

    (d) COMMODITY CREDIT CORPORATION- The Secretary shall carry out the program authorized by this section through the Commodity Credit Corporation.

SEC. 352. FORESTRY.

    (a) FORESTRY INCENTIVES PROGRAM- Section 4 of the Cooperative Forestry Assistance Act of 1978 (16 U.S.C. 2103) is amended by striking subsection (k).

    (b) OFFICE OF INTERNATIONAL FORESTRY- Section 2405 of the Food, Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 6704) is amended by adding at the end the following:

    ‘(d) AUTHORIZATION OF APPROPRIATIONS- There are authorized each fiscal year such sums as are necessary to carry out this section.’.

SEC. 353. STATE TECHNICAL COMMITTEES.

    Section 1261(c) of the Food Security Act of 1985 (16 U.S.C. 3861(c)) is amended--

      (1) in paragraph (7), by striking ‘and’ at the end;

      (2) in paragraph (8), by striking the period at the end and inserting a semicolon; and

      (3) by adding at the end the following:

      ‘(9) agricultural producers;

      ‘(10) other nonprofit organizations with demonstrable expertise;

      ‘(11) persons knowledgeable about the economic and environmental impact of conservation techniques and programs; and

      ‘(12) agribusiness.

SEC. 354. CONSERVATION OF PRIVATE GRAZING LAND.

    (a) FINDINGS- Congress finds that--

      (1) privately owned grazing land constitutes nearly 1/2 of the non-Federal land of the United States and is basic to the environmental, social, and economic stability of rural communities;

      (2) privately owned grazing land contains a complex set of interactions among soil, water, air, plants, and animals;

      (3) grazing land constitutes the single largest watershed cover type in the United States and contributes significantly to the quality and quantity of water available for all of the many uses of the land;

      (4) private grazing land constitutes the most extensive wildlife habitat in the United States;

      (5) private grazing land can provide opportunities for improved nutrient management from land application of animal manures and other by-product nutrient resources;

      (6) owners and managers of private grazing land need to continue to recognize conservation problems when the problems arise and receive sound technical assistance to improve or conserve grazing land resources to meet ecological and economic demands;

      (7) new science and technology must continually be made available in a practical manner so owners and managers of private grazing land may make informed decisions concerning vital grazing land resources;

      (8) agencies of the Department of Agriculture with private grazing land responsibilities are the agencies that have the expertise and experience to provide technical assistance, education, and research to owners and managers of private grazing land for the long-term productivity and ecological health of grazing land;

      (9) although competing demands on private grazing land resources are greater than ever before, assistance to private owners and managers of private grazing land is currently limited and does not meet the demand and basic need for adequately sustaining or enhancing the private grazing lands resources; and

      (10) privately owned grazing land can be enhanced to provide many benefits to all Americans through voluntary cooperation among owners and managers of the land, local conservation districts, and the agencies of the Department of Agriculture responsible for providing assistance to owners and managers of land and to conservation districts.

    (b) PURPOSE- It is the purpose of this section to authorize the Secretary of Agriculture to provide a coordinated technical, educational, and related assistance program to conserve and enhance private grazing land resources and provide related benefits to all citizens of the United States by--

      (1) establishing a coordinated and cooperative Federal, State, and local grazing conservation program for management of private grazing land;

      (2) strengthening technical, educational, and related assistance programs that provide assistance to owners and managers of private grazing land;

      (3) conserving and improving wildlife habitat on private grazing land;

      (4) conserving and improving fish habitat and aquatic systems through grazing land conservation treatment;

      (5) protecting and improving water quality;

      (6) improving the dependability and consistency of water supplies;

      (7) identifying and managing weed, noxious weed, and brush encroachment problems on private grazing land; and

      (8) integrating conservation planning and management decisions by owners and managers of private grazing land, on a voluntary basis.

    (c) DEFINITIONS- In this section:

      (1) PRIVATE GRAZING LAND- The term ‘private grazing land’ means privately owned, State-owned, tribally-owned, and any other non-federally owned rangeland, pastureland, grazed forest land, and hay land.

      (2) SECRETARY- The term ‘Secretary’ means the Secretary of Agriculture, acting through the Natural Resources Conservation Service.

    (d) PRIVATE GRAZING LAND CONSERVATION ASSISTANCE-

      (1) ASSISTANCE TO GRAZING LANDOWNERS AND OTHERS- Subject to the availability of appropriations, the Secretary shall establish a voluntary program to provide technical, educational, and related assistance to owners and managers of private grazing land and public agencies, through local conservation districts, to enable the landowners, managers, and public agencies to voluntarily carry out activities that are consistent with this section, including--

        (A) maintaining and improving private grazing land and the multiple values and uses that depend on private grazing land;

        (B) implementing grazing land management technologies;

        (C) managing resources on private grazing land, including--

          (i) planning, managing, and treating private grazing land resources;

          (ii) ensuring the long-term sustainability of private grazing land resources;

          (iii) harvesting, processing, and marketing private grazing land resources; and

          (iv) identifying and managing weed, noxious weed, and brush encroachment problems;

        (D) protecting and improving the quality and quantity of water yields from private grazing land;

        (E) maintaining and improving wildlife and fish habitat on private grazing land;

        (F) enhancing recreational opportunities on private grazing land;

        (G) maintaining and improving the aesthetic character of private grazing lands; and

        (H) identifying the opportunities and encouraging the diversification of private grazing land enterprises.

      (2) PROGRAM ELEMENTS-

        (A) FUNDING- The program under paragraph (1) shall be funded through a specific line-item in the annual appropriations for the Natural Resources Conservation Service.

        (B) TECHNICAL ASSISTANCE AND EDUCATION- Personnel of the Department of Agriculture trained in pasture and range management shall be made available under the program to deliver and coordinate technical assistance and education to owners and managers of private grazing land, at the request of the owners and managers.

    (e) GRAZING TECHNICAL ASSISTANCE SELF-HELP-

      (1) FINDINGS- Congress finds that--

        (A) there is a severe lack of technical assistance for grazing producers;

        (B) the Federal budget precludes any significant expansion, and may force a reduction of, current levels of technical support; and

        (C) farmers and ranchers have a history of cooperatively working together to address common needs in the promotion of their products and in the drainage of wet areas through drainage districts.

      (2) ESTABLISHMENT OF GRAZING DEMONSTRATION- The Secretary may establish 2 grazing management demonstration districts at the recommendation of the Grazing Lands Conservation Initiative Steering Committee.

      (3) PROCEDURE-

        (A) PROPOSAL- Within a reasonable time after the submission of a request of an organization of farmers or ranchers engaged in grazing, the Secretary shall propose that a grazing management district be established.

        (B) FUNDING- The terms and conditions of the funding and operation of the grazing management district shall be proposed by the producers.

        (C) APPROVAL- The Secretary shall approve the proposal if the Secretary determines that the proposal--

          (i) is reasonable;

          (ii) will promote sound grazing practices; and

          (iii) contains provisions similar to the provisions contained in the promotion orders in effect on the effective date of this section.

        (D) AREA INCLUDED- The area proposed to be included in a grazing management district shall be determined by the Secretary on the basis of a petition by farmers or ranchers.

        (E) AUTHORIZATION- The Secretary may use authority under the Agricultural Adjustment Act (7 U.S.C. 601 et seq.), reenacted with amendments by the Agricultural Marketing Agreement Act of 1937, to operate, on a demonstration basis, a grazing management district.

        (F) ACTIVITIES- The activities of a grazing management district shall be scientifically sound activities, as determined by the Secretary in consultation with a technical advisory committee composed of ranchers, farmers, and technical experts.

    (f) AUTHORIZATION OF APPROPRIATIONS- There are authorized to be appropriated to carry out this section--

      (1) $20,000,000 for fiscal year 1996;

      (2) $40,000,000 for fiscal year 1997; and

      (3) $60,000,000 for fiscal year 1998 and each subsequent fiscal year.

SEC. 355. CONFORMING AMENDMENTS.

    (a) AGRICULTURAL CONSERVATION PROGRAM-

      (1) ELIMINATION-

        (A) Section 8 of the Soil Conservation and Domestic Allotment Act (16 U.S.C. 590h) is amended--

          (i) in subsection (b)--

            (I) by striking paragraphs (1) through (4) and inserting the following:

      ‘(1) ENVIRONMENTAL QUALITY INCENTIVES PROGRAM- The Secretary shall provide technical assistance, cost share payments, and incentive payments to operators through the environmental quality incentives program in accordance with chapter 2 of subtitle D of the Food Security Act of 1985 (16 U.S.C. 3838 et seq.).’; and

            (II) by striking paragraphs (6) through (8); and

          (ii) by striking subsections (d), (e), and (f).

        (B) The first sentence of section 11 of the Soil Conservation and Domestic Allotment Act (16 U.S.C. 590k) is amended by striking ‘performance: Provided further,’ and all that follows through ‘or other law’ and inserting ‘performance’.

        (C) Section 14 of the Act (16 U.S.C. 590n) is amended--

          (i) in the first sentence, by striking ‘or 8’; and

          (ii) by striking the second sentence.

        (D) Section 15 of the Act (16 U.S.C. 590o) is amended--

          (i) in the first undesignated paragraph--

            (I) in the first sentence, by striking ‘sections 7 and 8’ and inserting ‘section 7’; and

            (II) by striking the third sentence; and

          (ii) by striking the second undesignated paragraph.

      (2) CONFORMING AMENDMENTS-

        (A) Paragraph (1) of the last proviso of the matter under the heading ‘CONSERVATION RESERVE PROGRAM’ under the heading ‘SOIL BANK PROGRAMS’ of title I of the Department of Agriculture and Farm Credit Administration Appropriation Act, 1959 (72 Stat. 195; 7 U.S.C. 1831a) is amended by striking ‘Agricultural Conservation Program’ and inserting ‘environmental quality incentives program established under chapter 2 of subtitle D of the Food Security Act of 1985 (16 U.S.C. 3838 et seq.)’.

        (B) Section 4 of the Cooperative Forestry Assistance Act of 1978 (16 U.S.C. 2103) is amended by striking ‘as added by the Agriculture and Consumer Protection Act of 1973’ each place it appears in subsections (d) and (i) and inserting ‘as in effect before the amendment made by section 355(a)(1) of the Agricultural Reform and Improvement Act of 1996’.

        (C) Section 226(b)(4) of the Department of Agriculture Reorganization Act of 1994 (7 U.S.C. 6932(b)(4)) is amended by striking ‘and the agricultural conservation program under the Soil Conservation and Domestic Allotment Act (16 U.S.C. 590g et seq.)’.

        (D) Section 246(b)(8) of the Department of Agriculture Reorganization Act of 1994 (7 U.S.C. 6962(b)(8)) is amended by striking ‘and the agricultural conservation program under the Soil Conservation and Domestic Allotment Act (16 U.S.C. 590g et seq.)’.

        (E) Section 1271(c)(3)(C) of the Food, Agriculture, Conservation, and Trade Act of 1990 (16 U.S.C. 2106a(c)(3)(C)) is amended by striking ‘Agricultural Conservation Program established under section 16(b) of the Soil Conservation and Domestic Allotment Act (16 U.S.C. 590h, 590l, or 590p)’ and inserting ‘environmental quality incentives program established under chapter 2 of subtitle D of the Food Security Act of 1985 (16 U.S.C. 3838 et seq.)’.

        (F) Section 126(a)(5) of the Internal Revenue Code of 1986 is amended to read as follows:

      ‘(5) The environmental quality incentives program established under chapter 2 of subtitle D of the Food Security Act of 1985 (16 U.S.C. 3838 et seq.).’.

        (G) Section 304(a) of the Lake Champlain Special Designation Act of 1990 (Public Law 101-596; 33 U.S.C. 1270 note) is amended--

          (i) in the subsection heading, by striking ‘SPECIAL PROJECT AREA UNDER THE AGRICULTURAL CONSERVATION PROGRAM’ and inserting ‘A PRIORITY AREA UNDER THE ENVIRONMENTAL QUALITY INCENTIVES PROGRAM’; and

          (ii) in paragraph (1), by striking ‘special project area under the Agricultural Conservation Program established under section 8(b) of the Soil Conservation and Domestic Allotment Act (16 U.S.C. 590h(b))’ and inserting ‘priority area under the environmental quality incentives program established under chapter 2 of subtitle D of the Food Security Act of 1985 (16 U.S.C. 3838 et seq.)’.

        (H) Section 6 of the Department of Agriculture Organic Act of 1956 (70 Stat. 1033) is amended by striking subsection (b).

    (b) GREAT PLAINS CONSERVATION PROGRAM-

      (1) ELIMINATION- Section 16 of the Soil Conservation and Domestic Allotment Act (16 U.S.C. 590p) is repealed.

      (2) CONFORMING AMENDMENTS-

        (A) The Agricultural Adjustment Act of 1938 is amended by striking ‘Great Plains program’ each place it appears in sections 344(f)(8) and 377 (7 U.S.C. 1344(f)(8) and 1377) and inserting ‘environmental quality incentives program established under chapter 2 of subtitle D of the Food Security Act of 1985 (16 U.S.C. 3838 et seq.)’.

        (B) Section 246(b) of the Department of Agriculture Reorganization Act of 1994 (7 U.S.C. 6962(b)) is amended by striking paragraph (2).

        (C) Section 126(a) of the Internal Revenue Code of 1986 is amended--

          (i) by striking paragraph (6); and

          (ii) by redesignating paragraphs (7) through (10) as paragraphs (6) through (9), respectively.

    (c) COLORADO RIVER BASIN SALINITY CONTROL PROGRAM-

      (1) ELIMINATION- Section 202 of the Colorado River Basin Salinity Control Act (43 U.S.C. 1592) is amended by striking subsection (c).

      (2) CONFORMING AMENDMENT- Section 246(b) of the Department of Agriculture Reorganization Act of 1994 (7 U.S.C. 6962(b)) is amended by striking paragraph (6).

    (d) RURAL ENVIRONMENTAL CONSERVATION PROGRAM-

      (1) ELIMINATION- Title X of the Agricultural Act of 1970 (16 U.S.C. 1501 et seq.) is repealed.

      (2) CONFORMING AMENDMENTS- Section 246(b) of the Department of Agriculture Reorganization Act of 1994 (7 U.S.C. 6962(b)) is amended--

        (A) by striking paragraph (1); and

        (B) by redesignating paragraphs (2) through (8) as paragraphs (1) through (7), respectively.

    (e) OTHER CONSERVATION PROVISIONS- Subtitle F of title XII of the Food Security Act of 1985 (16 U.S.C. 2005a and 2101 note) is repealed.

    (f) COMMODITY CREDIT CORPORATION CHARTER ACT- Section 5(g) of the Commodity Credit Corporation Charter Act (15 U.S.C. 714c(g)) is amended to read as follows:

    ‘(g) Carry out conservation functions and programs.’.

    (g) RESOURCE CONSERVATION-

      (1) ELIMINATION- Subtitles A, B, D, E, F, G, and J of title XV of the Agriculture and Food Act of 1981 (95 Stat. 1328; 16 U.S.C. 3401 et seq.) are repealed.

      (2) CONFORMING AMENDMENT- Section 739 of the Agriculture, Rural Development, Food and Drug Administration, and Related Agencies Appropriations Act, 1982 (7 U.S.C. 2272a), is repealed.

    (h) ENVIRONMENTAL EASEMENT PROGRAM- Section 1239(a) of the Food Security Act of 1985 (16 U.S.C. 3839(a)) is amended by striking ‘1991 through 1995’ and inserting ‘1996 through 2002’.

    (i) RESOURCE CONSERVATION AND DEVELOPMENT PROGRAM- Section 1538 of the Agriculture and Food Act of 1981 (16 U.S.C. 3461) is amended by striking ‘1991 through 1995’ and inserting ‘1996 through 2002’.

    (j) TECHNICAL AMENDMENT- The first sentence of the matter under the heading ‘Commodity Credit Corporation’ of Public Law 99-263 (100 Stat. 59; 16 U.S.C. 3841 note) is amended by striking ‘: Provided further,’ and all that follows through ‘Acts’.

    (k) AGRICULTURAL WATER QUALITY INCENTIVES PROGRAM- Chapter 2 of subtitle D of title XII of the Food Security Act of 1985 (16 U.S.C. 3838 et seq.) is repealed.

SEC. 356. WATER BANK PROGRAM.

    Section 1230 of the Food Security Act of 1985 (16 U.S.C. 3830) is amended by adding at the end the following:

    ‘(d) WATER BANK PROGRAM- For purposes of this Act, acreage enrolled, prior to the date of enactment of this subsection, in the water bank program authorized by the Water Bank Act (16 U.S.C. 1301 et seq.) shall be considered to have been enrolled in the conservation reserve program on the date the acreage was enrolled in the water bank program. Payments shall continue at the existing water bank rates.’.

SEC. 357. FLOOD WATER RETENTION PILOT PROJECTS.

    Section 16 of the Soil Conservation and Domestic Allotment Act (16 U.S.C. 590p) is amended by adding at the end the following:

    ‘(l) FLOOD WATER RETENTION PILOT PROJECTS-

      ‘(1) IN GENERAL- In cooperation with States, the Secretary shall carry out at least 1 but not more than 2 pilot projects to create and restore natural water retention areas to control storm water and snow melt runoff within closed drainage systems.

      ‘(2) PRACTICES- To carry out paragraph (1), the Secretary shall provide cost-sharing and technical assistance for the establishment of nonstructural landscape management practices, including agricultural tillage practices and restoration, enhancement, and creation of wetland characteristics.

      ‘(3) FUNDING-

        ‘(A) LIMITATION- The funding used by the Secretary to carry out this subsection shall not exceed $10,000,000 per project.

        ‘(B) USE OF COMMODITY CREDIT CORPORATION- The Secretary shall use the funds, facilities, and authorities of the Commodity Credit Corporation to carry out this subsection.

      ‘(4) ADDITIONAL PILOT PROJECTS-

        ‘(A) EVALUATION- Not later than 2 years after a pilot project is implemented, the Secretary shall evaluate the extent to which the project has reduced or may reduce Federal outlays for emergency spending and unplanned infrastructure maintenance by an amount that exceeds the Federal cost of the project.

        ‘(B) ADDITIONAL PROJECTS- If the Secretary determines that pilot projects carried out under this subsection have reduced or may reduce Federal outlays as described in subparagraph (A), the Secretary may carry out, in accordance with this subsection, pilot projects in addition to the projects authorized under paragraph (1).’.

SEC. 358. WETLAND CONSERVATION EXEMPTION.

    Section 1222(b)(1) of the Food Security Act of 1985 (16 U.S.C. 3822(b)(1)) is amended--

      (1) in subparagraph (C), by striking ‘or’ at the end; and

      (2) by adding at the end the following:

        ‘(E) converted wetland, if--

          ‘(i) the extent of the conversion is limited to the reversion to conditions that will be at least equivalent to the wetland functions and values that existed prior to implementation of a voluntary wetland restoration, enhancement, or creation action;

          ‘(ii) technical determinations of the prior site conditions and the restoration, enhancement, or creation action have been adequately documented in a plan approved by the Natural Resources Conservation Service prior to implementation; and

          ‘(iii) the conversion action proposed by the private landowner is approved by the Natural Resources Conservation Service prior to implementation; or’.

SEC. 359. FLOODPLAIN EASEMENTS.

    Section 403 of the Agricultural Credit Act of 1978 (16 U.S.C. 2203) is amended by inserting ‘, including the purchase of floodplain easements,’ after ‘emergency measures’.

SEC. 360. RESOURCE CONSERVATION AND DEVELOPMENT PROGRAM REAUTHORIZATION.

    Section 1538 of the Agriculture and Food Act of 1981 (16 U.S.C. 3461) is amended by striking ‘1991 through 1995’ and inserting ‘1996 through 2001’.

SEC. 361. CONSERVATION RESERVE NEW ACREAGE.

    Section 1231(a) of the Food Security Act of 1985 (16 U.S.C. 3831(a)) is amended by adding at the end the following: ‘The Secretary may enter into 1 or more new contracts to enroll acreage in a quantity equal to the quantity of acreage covered by any contract that terminates after the date of enactment of the Agricultural Market Transition Act.’.

SEC. 362. REPEAL OF REPORT REQUIREMENT.

    Section 1342 of title 44, United States Code, is repealed.

SEC. 363. WATERSHED PROTECTION AND FLOOD PREVENTION ACT AMENDMENTS.

    (a) DECLARATION OF POLICY- The first section of the Watershed Protection and Flood Prevention Act (16 U.S.C. 1001) is amended to read as follows:

‘SECTION 1. DECLARATION OF POLICY.

    ‘Erosion, flooding, sedimentation, and loss of natural habitats in the watersheds and waterways of the United States cause loss of life, damage to property, and a reduction in the quality of environment and life of citizens. It is therefore the sense of Congress that the Federal Government should join with States and their political subdivisions, public agencies, conservation districts, flood prevention or control districts, local citizens organizations, and Indian tribes for the purpose of conserving, protecting, restoring, and improving the land and water resources of the United States and the quality of the environment and life for watershed residents across the United States.’.

    (b) DEFINITIONS-

      (1) WORKS OF IMPROVEMENT- Section 2 of the Act (16 U.S.C. 1002) is amended, with respect to the term ‘works of improvement’--

        (A) in paragraph (1), by inserting ‘, nonstructural,’ after ‘structural’;

        (B) in paragraph (2), by striking ‘or’ at the end;

        (C) by redesignating paragraph (3) as paragraph (11);

        (D) by inserting after paragraph (2) the following new paragraphs:

      ‘(3) a land treatment or other nonstructural practice, including the acquisition of easements or real property rights, to meet multiple watershed needs,

      ‘(4) the restoration and monitoring of the chemical, biological, and physical structure, diversity, and functions of waterways and their associated ecological systems,

      ‘(5) the restoration or establishment of wetland and riparian environments as part of a multi-objective management system that provides floodwater or storm water storage, detention, and attenuation, nutrient filtering, fish and wildlife habitat, and enhanced biological diversity,

      ‘(6) the restoration of steam channel forms, functions, and diversity using the principles of biotechnical slope stabilization to reestablish a meandering, bankfull flow channels, riparian vegetation, and floodplains,

      ‘(7) the establishment and acquisition of multi-objective riparian and adjacent flood prone lands, including greenways, for sediment storage and floodwater storage,

      ‘(8) the protection, restoration, enhancement and monitoring of surface and groundwater quality, including measures to improve the quality of water emanating from agricultural lands and facilities,

      ‘(9) the provision of water supply and municipal and industrial water supply for rural communities having a population of less than 55,000, according to the most recent decennial census of the United States,

      ‘(10) outreach to and organization of local citizen organizations to participate in project design and implementation, and the training of project volunteers and participants in restoration and monitoring techniques, or’; and

        (E) in paragraph (11) (as so redesignated)--

          (i) by inserting in the first sentence after ‘proper utilization of land’ the following: ‘, water, and related resources’; and

          (ii) by striking the sentence that mandates that 20 percent of total project benefits be directly related to agriculture.

      (2) LOCAL ORGANIZATION- Such section is further amended, with respect to the term ‘local organization’, by adding at the end the following new sentence: ‘The term includes any nonprofit organization (defined as having tax exempt status under section 501(c)(3) of the Internal Revenue Code of 1986) that has authority to carry out and maintain works of improvement or is developing and implementing a work of improvement in partnership with another local organization that has such authority.’.

      (3) WATERWAY- Such section is further amended by adding at the end the following new definition:

    ‘WATERWAY- The term ‘waterway’ means, on public or private land, any natural, degraded, seasonal, or created wetland on public or private land, including rivers, streams, riparian areas, marshes, ponds, bogs, mudflats, lakes, and estuaries. The term includes any natural or manmade watercourse which is culverted, channelized, or vegetatively cleared, including canals, irrigation ditches, drainage wages, and navigation, industrial, flood control and water supply channels.’.

    (c) ASSISTANCE TO LOCAL ORGANIZATIONS- Section 3 of the Act (16 U.S.C. 1003) is amended--

      (1) in paragraph (1), by inserting after ‘(1)’ the following ‘to provide technical assistance to help local organizations’;

      (2) in paragraph (2)--

        (A) by inserting after ‘(2)’ the following: ‘to provide technical assistance to help local organizations’; and

        (B) by striking ‘engineering’ and inserting ‘technical and scientific’; and

      (3) by striking paragraph (3) and inserting the following new paragraph:

      ‘(3) to make allocations of costs to the project or project components to determine whether the total of all environmental, social, and monetary benefits exceed costs;’.

    (d) COST SHARE ASSISTANCE-

      (1) AMOUNT OF ASSISTANCE- Section 3A of the Act (16 U.S.C. 1003a) is amended by striking subsection (b) and inserting the following:

    ‘(b) NONSTRUCTURAL PRACTICES- Notwithstanding any other provision of this Act, Federal cost share assistance to local organizations for the planning and implementation of nonstructural works of improvement may be provided using funds appropriated for the purposes of this Act for an amount not exceeding 75 percent of the total installation costs.

    ‘(c) STRUCTURAL PRACTICES- Notwithstanding any other provision of this Act, Federal cost share assistance to local organizations for the planning and implementation of structural works of improvement may be provided using funds appropriated for the purposes of this Act for 50 percent of the total cost, including the cost of mitigating damage to fish and wildlife habitat and the value of any land or interests in land acquired for the work of improvement.

    ‘(d) SPECIAL RULE FOR LIMITED RESOURCE COMMUNITIES- Notwithstanding any other provision of this Act, the Secretary may provide cost share assistance to a limited resource community for any works of improvement, using funds appropriated for the purposes of this Act, for an amount not to exceed 90 percent of the total cost.

    ‘(e) TREATMENT OF OTHER FEDERAL FUNDS- Not more than 50 percent of the non-Federal cost share may be satisfied using funds from other Federal agencies.’.

      (2) CONDITIONS ON ASSISTANCE- Section 4(1) of the Act (16 U.S.C. 1004(1)) is amended by striking ‘, without cost to the Federal Government from funds appropriated for the purposes of this Act,’.

    (e) BENEFIT COST ANALYSIS- Section 5(1) of the Act (16 U.S.C. 1005(1)) is amended by striking ‘the benefits’ and inserting ‘the total benefits, including environmental, social, and monetary benefits,’.

    (f) PROJECT PRIORITIZATION- The Watershed Protection and Flood Prevention Act is amended by inserting after section 5 (16 U.S.C. 1005) the following new section:

‘SEC. 5A. FUNDING PRIORITIES.

    ‘In making funding decisions under this Act, the Secretary shall give priority to projects with one or more of the following attributes:

      ‘(1) Projects providing significant improvements in ecological values and functions in the project area.

      ‘(2) Projects that enhance the long-term health of local economies or generate job or job training opportunities for local residents, including Youth Conservation and Service Corps participants and displaced resource harvesters.

      ‘(3) Projects that provide protection to human health, safety, and property.

      ‘(4) Projects that directly benefit economically disadvantaged communities and enhance participation by local residents of such communities.

      ‘(5) Projects that restore or enhance fish and wildlife species of commercial, recreational, subsistence or scientific concern.

      ‘(6) Projects or components of projects that can be planned, designed, and implemented within two years.’.

    (g) TRANSFER OF FUNDS- The Watershed Protection and Flood Prevention Act (16 U.S.C. 1001-1010) is amended by adding at the end the following new section:

‘SEC. 14. TRANSFERS OF FUNDS.

    ‘The Secretary may accept transfers of funds from other Federal departments and agencies in order to carry out projects under this Act.’.

SEC. 364. ABANDONMENT OF CONVERTED WETLANDS.

    Section 1222 of the Food Security Act of 1985 (16 U.S.C. 3822) is amended by adding at the end the following:

    ‘(k) ABANDONMENT OF CONVERTED WETLANDS- The Secretary shall not determine that a prior converted or cropped wetland is abandoned, and therefore that the wetland is subject to this subtitle, on the basis that a producer has not planted an agricultural crop on the prior converted or cropped wetland after the date of enactment of this subsection, so long as any use of the wetland thereafter is limited to agricultural purposes.’.

TITLE IV--NUTRITION ASSISTANCE

SEC. 401. FOOD STAMP PROGRAM.

    (a) DISQUALIFICATION OF A STORE OR CONCERN- Section 12 of the Food Stamp Act of 1977 (7 U.S.C. 2021) is amended--

      (1) by striking the section heading;

      (2) by striking ‘SEC. 12. (a) Any’ and inserting the following:

‘SEC. 12. CIVIL MONEY PENALTIES AND DISQUALIFICATION OF RETAIL FOOD STORES AND WHOLESALE FOOD CONCERNS.

    ‘(a) DISQUALIFICATION-

      ‘(1) IN GENERAL- An’;

      (3) by adding at the end of subsection (a) the following:

      ‘(2) EMPLOYING CERTAIN PERSONS- A retail food store or wholesale food concern shall be disqualified from participation in the food stamp program if the store or concern knowingly employs a person who has been found by the Secretary, or a Federal, State, or local court, to have, within the preceding 3-year period--

        ‘(A) engaged in the trading of a firearm, ammunition, an explosive, or a controlled substance (as defined in section 102 of the Controlled Substances Act (21 U.S.C. 802)) for a coupon; or

        ‘(B) committed any act that constitutes a violation of this Act or a State law relating to using, presenting, transferring, acquiring, receiving, or possessing a coupon, authorization card, or access device.’; and

      (4) in subsection (b)(3)(B), by striking ‘neither the ownership nor management of the store or food concern was aware’ and inserting ‘the ownership of the store or food concern was not aware’.

    (b) EMPLOYMENT AND TRAINING- Section 16(h)(1) of the Food Stamp Act of 1977 (7 U.S.C. 2025(h)(1)) is amended by striking ‘1995’ each place it appears and inserting ‘2002’.

    (c) AUTHORIZATION OF PILOT PROJECTS- The last sentence of section 17(b)(1)(A) of the Food Stamp Act of 1977 (7 U.S.C. 2026(b)(1)(A)) is amended by striking ‘1995’ and inserting ‘2002’.

    (d) OUTREACH DEMONSTRATION PROJECTS- The first sentence of section 17(j)(1)(A) of the Food Stamp Act of 1977 (7 U.S.C. 2026(j)(1)(A)) is amended by striking ‘1995’ and inserting ‘2002’.

    (e) AUTHORIZATION FOR APPROPRIATIONS- The first sentence of section 18(a)(1) of the Food Stamp Act of 1977 (7 U.S.C. 2027(a)(1)) is amended by striking ‘1995’ and inserting ‘2002’.

    (f) REAUTHORIZATION OF PUERTO RICO NUTRITION ASSISTANCE PROGRAM- The first sentence of section 19(a)(1)(A) of the Food Stamp Act of 1977 (7 U.S.C. 2028(a)(1)(A)) is amended by striking ‘$974,000,000’ and all that follows through ‘fiscal year 1995’ and inserting ‘$1,143,000,000 for fiscal year 1996, $1,174,000,000 for fiscal year 1997, $1,204,000,000 for fiscal year 1998, $1,236,000,000 for fiscal year 1999, $1,268,000,000 for fiscal year 2000, $1,301,000,000 for fiscal year 2001, and $1,335,000,000 for fiscal year 2002’.

    (g) AMERICAN SAMOA- The Food Stamp Act of 1977 (7 U.S.C. 2011 et seq.) is amended by adding at the end the following:

‘SEC. 24. TERRITORY OF AMERICAN SAMOA.

    ‘From amounts made available to carry out this Act, the Secretary may pay to the Territory of American Samoa not more than $5,300,000 for each of fiscal years 1996 through 2002 to finance 100 percent of the expenditures for the fiscal year for a nutrition assistance program extended under section 601(c) of Public Law 96-597 (48 U.S.C. 1469d(c)).’.

SEC. 402. COMMODITY DISTRIBUTION PROGRAM; COMMODITY SUPPLEMENTAL FOOD PROGRAM.

    (a) REAUTHORIZATION- The first sentence of section 4(a) of the Agriculture and Consumer Protection Act of 1973 (Public Law 93-86; 7 U.S.C. 612c note) is amended by striking ‘1995’ and inserting ‘2002’.

    (b) FUNDING- Section 5 of the Agriculture and Consumer Protection Act of 1973 (Public Law 93-86; 7 U.S.C. 612c note) is amended--

      (1) in subsection (a)(2), by striking ‘1995’ and inserting ‘2002’; and

      (2) in subsection (d)(2), by striking ‘1995’ and inserting ‘2002’.

    (c) CARRIED-OVER FUNDS- 20 percent of any commodity supplemental food program funds carried over under section 5 of the Agriculture and Consumer Protection Act of 1973 (Public Law 93-86; 7 U.S.C. 612c note) shall be available for administrative expenses of the program.

SEC. 403. EMERGENCY FOOD ASSISTANCE PROGRAM.

    (a) REAUTHORIZATION- The first sentence of section 204(a)(1) of the Emergency Food Assistance Act of 1983 (Public Law 98-8; 7 U.S.C. 612c note) is amended by striking ‘1995’ and inserting ‘2002’.

    (b) PROGRAM TERMINATION- Section 212 of the Emergency Food Assistance Act of 1983 (Public Law 98-8; 7 U.S.C. 612c note) is amended by striking ‘1995’ and inserting ‘2002’.

    (c) REQUIRED PURCHASES OF COMMODITIES- Section 214 of the Emergency Food Assistance Act of 1983 (Public Law 98-8; 7 U.S.C. 612c note) is amended--

      (1) in the first sentence of subsection (a), by striking ‘1995’ and inserting ‘2002’; and

      (2) in subsection (e), by striking ‘1995’ each place it appears and inserting ‘2002’.

SEC. 404. SOUP KITCHENS PROGRAM.

    Section 110 of the Hunger Prevention Act of 1988 (Public Law 100-435; 7 U.S.C. 612c note) is amended--

      (1) in the first sentence of subsection (a), by striking ‘1995’ and inserting ‘2002’; and

      (2) in subsection (c)(2)--

        (A) in the paragraph heading, by striking ‘1995’ and inserting ‘2002’; and

        (B) by striking ‘1995’ each place it appears and inserting ‘2002’.

SEC. 405. NATIONAL COMMODITY PROCESSING.

    The first sentence of section 1114(a)(2)(A) of the Agriculture and Food Act of 1981 (7 U.S.C. 1431e(2)(A)) is amended by striking ‘1995’ and inserting ‘2002’.

TITLE V--MISCELLANEOUS

Subtitle A--General Miscellaneous Provisions

SEC. 501. FUND FOR DAIRY PRODUCERS TO PAY FOR NUTRIENT MANAGEMENT.

    Section 8c(5) of the Agricultural Adjustment Act (7 U.S.C. 608c(5)), reenacted with amendments by the Agricultural Marketing Agreement Act of 1937, is amended--

      (1) in paragraph (A), by adding at the end the following: ‘The minimum price for milk of the highest classification in any order (other than an order amended under paragraph (M)) may not be higher than the minimum price required under this paragraph.’; and

      (2) by adding at the end the following:

        ‘(M) SAFE HARBOR-

          ‘(i) IN GENERAL- Providing that each order may be amended such that not more than $.10 per hundredweight of milk of the highest use classification may be added to the minimum applicable price to be set aside in a fund called the ‘Safe Harbor Fund Account’ (referred to in this paragraph as the ‘Account’).

          ‘(ii) ADMINISTRATION-

            ‘(I) MARKET ADMINISTRATOR- The Account shall be administered by the Market Administrator.

            ‘(II) USE OF FUNDS- A determination regarding the use of the funds in the Account shall be made by the Safe Harbor Committee established under clause (iii).

          ‘(iii) SAFE HARBOR COMMITTEE- The Secretary shall establish a Safe Harbor Committee consisting of 7 milk producers appointed by the Secretary who supply milk to handlers regulated under a Federal milk marketing order.

          ‘(iv) USE OF FUNDS-

            ‘(I) APPLICATIONS- To be eligible to use amounts in the fund, a milk producer who supplies milk to handlers regulated under a Federal milk marketing order shall submit an application to the Safe Harbor Committee.

            ‘(II) APPROVAL- The Safe Harbor Committee may approve only applications that fund conservation practices approved by the Secretary that control the off-migration of nutrients from the farm.

            ‘(III) STATE WATER QUALITY PRIORITIES- In approving applications, the Safe Harbor Committee shall take into account, to the extent practicable, the applicable State water quality priorities.’.

SEC. 502. CROP INSURANCE.

    (a) CATASTROPHIC RISK PROTECTION- Section 508(b) of the Federal Crop Insurance Act (7 U.S.C. 1508(b)) is amended--

      (1) in paragraph (4), by adding at the end the following:

        ‘(C) DELIVERY OF COVERAGE-

          ‘(i) IN GENERAL- In full consultation with approved insurance providers, the Secretary may continue to offer catastrophic risk protection in a State (or a portion of a State) through local offices of the Department if the Secretary determines that there is an insufficient number of approved insurance providers operating in the State or portion to adequately provide catastrophic risk protection coverage to producers.

          ‘(ii) COVERAGE BY APPROVED INSURANCE PROVIDERS- To the extent that catastrophic risk protection coverage by approved insurance providers is sufficiently available in a State as determined by the Secretary, only approved insurance providers may provide the coverage in the State.

          ‘(iii) CURRENT POLICIES- Subject to clause (ii), all catastrophic risk protection policies written by local offices of the Department shall be transferred (including all fees collected for the crop year in which the approved insurance provider will assume the policies) to the approved insurance provider for performance of all sales, service, and loss adjustment functions.’; and

      (2) in paragraph (7), by striking subparagraph (A) and inserting the following:

        ‘(A) IN GENERAL- Effective for the spring-planted 1996 and subsequent crops, to be eligible for any payment or loan under the Agricultural Market Transition Act or the Agricultural Adjustment Act of 1938 (7 U.S.C. 1301 et seq.), the conservation reserve program, or any benefit described in section 371 of the Consolidated Farm and Rural Development Act (7 U.S.C. 2008f), a person shall--

          ‘(i) obtain at least the catastrophic level of insurance for each crop of economic significance in which the person has an interest; or

          ‘(ii) provide a written waiver to the Secretary that waives any eligibility for emergency crop loss assistance in connection with the crop.’.

    (b) COVERAGE OF SEED CROPS- Section 519(a)(2)(B) of the Act (7 U.S.C. 1519(a)(2)(B)) is amended by inserting ‘seed crops,’ after ‘turfgrass sod,’.

    (c) CROP INSURANCE PILOT PROJECT-

      (1) COVERAGE- The Secretary of Agriculture shall develop and administer a pilot project for crop insurance coverage that indemnifies crop losses due to a natural disaster such as insect infestation or disease.

      (2) ACTUARIAL SOUNDNESS- A pilot project under this paragraph shall be actuarially sound, as determined by the Secretary and administered at no net cost to the United States Treasury.

      (3) DURATION- A pilot project under this paragraph shall be of two years’ duration.

    (d) CROP INSURANCE FOR SPECIALTY CROPS- Section 508(a)(6) of the Federal Crop Insurance Act (7 U.S.C. 1508(a)(6)) is amended by adding at the end the following:

        ‘(D) ADDITION OF SPECIALTY CROPS- Not later than 2 years after the date of enactment of this subparagraph--

          ‘(i) the Corporation shall issue regulations to expand crop insurance coverage under this title to include aquaculture; and

          ‘(ii) The Corporation shall conduct a study and limited pilot program on the feasibility of insuring nursery crops.’.

    (e) MARKETING WINDOWS- Section 508(j) of the Federal Crop Insurance Act (7 U.S.C. 1508(j)) is amended by adding at the end the following:

      ‘(4) MARKETING WINDOWS- The Corporation shall consider marketing windows in determining whether it is feasible to require planting during a crop year.’.

SEC. 503. REVENUE INSURANCE.

    Section 508(h) of the Federal Crop Insurance Act (7 U.S.C. 1508(h)) is amended by adding at the end the following:

      ‘(9) REVENUE INSURANCE PILOT PROGRAM-

        ‘(A) IN GENERAL- Not later than December 31, 1996, the Secretary shall carry out a pilot program in a limited number of counties, as determined by the Secretary, for crop years 1997, 1998, 1999, and 2000, under which a producer of corn, wheat, or soybeans may elect to receive insurance against loss of revenue, as determined by the Secretary.

        ‘(B) ADMINISTRATION- Revenue insurance under this paragraph shall--

          ‘(i) be offered through reinsurance arrangements with private insurance companies;

          ‘(ii) offer at least a minimum level of coverage that is an alternative to catastrophic crop insurance;

          ‘(iii) be actuarily sound; and

          ‘(iv) require the payment of premiums and administrative fees by an insured producer.’.

SEC. 504. COLLECTION AND USE OF AGRICULTURAL QUARANTINE AND INSPECTION FEES.

    Subsection (a) of section 2509 of the Food, Agriculture, Conservation, and Trade Act of 1990 (21 U.S.C. 136a) is amended to read as follows:

    ‘(a) QUARANTINE AND INSPECTION FEES-

      ‘(1) FEES AUTHORIZED- The Secretary of Agriculture may prescribe and collect fees sufficient--

        ‘(A) to cover the cost of providing agricultural quarantine and inspection services in connection with the arrival at a port in the customs territory of the United States, or the preclearance or preinspection at a site outside the customs territory of the United States, of an international passenger, commercial vessel, commercial aircraft, commercial truck, or railroad car;

        ‘(B) to cover the cost of administering this subsection; and

        ‘(C) through fiscal year 2002, to maintain a reasonable balance in the Agricultural Quarantine Inspection User Fee Account established under paragraph (5).

      ‘(2) LIMITATION- In setting the fees under paragraph (1), the Secretary shall ensure that the amount of the fees are commensurate with the costs of agricultural quarantine and inspection services with respect to the class of persons or entities paying the fees. The costs of the services with respect to passengers as a class includes the costs of related inspections of the aircraft or other vehicle.

      ‘(3) STATUS OF FEES- Fees collected under this subsection by any person on behalf of the Secretary are held in trust for the United States and shall be remitted to the Secretary in such manner and at such times as the Secretary may prescribe.

      ‘(4) LATE PAYMENT PENALTIES- If a person subject to a fee under this subsection fails to pay the fee when due, the Secretary shall assess a late payment penalty, and the overdue fees shall accrue interest, as required by section 3717 of title 31, United States Code.

      ‘(5) AGRICULTURAL QUARANTINE INSPECTION USER FEE ACCOUNT-

        ‘(A) ESTABLISHMENT- There is established in the Treasury of the United States a no-year fund, to be known as the ‘Agricultural Quarantine Inspection User Fee Account’, which shall contain all of the fees collected under this subsection and late payment penalties and interest charges collected under paragraph (4) through fiscal year 2002.

        ‘(B) USE OF ACCOUNT- For each of the fiscal years 1996 through 2002, funds in the Agricultural Quarantine Inspection User Fee Account shall be available, in such amounts as are provided in advance in appropriations Acts, to cover the costs associated with the provision of agricultural quarantine and inspection services and the administration of this subsection. Amounts made available under this subparagraph shall be available until expended.

        ‘(C) EXCESS FEES- Fees and other amounts collected under this subsection in any of the fiscal years 1996 through 2002 in excess of $100,000,000 shall be available for the purposes specified in subparagraph (B) until expended, without further appropriation.

      ‘(6) USE OF AMOUNTS COLLECTED AFTER FISCAL YEAR 2002- After September 30, 2002, the unobligated balance in the Agricultural Quarantine Inspection User Fee Account and fees and other amounts collected under this subsection shall be credited to the Department of Agriculture accounts that incur the costs associated with the provision of agricultural quarantine and inspection services and the administration of this subsection. The fees and other amounts shall remain available to the Secretary until expended without fiscal year limitation.

      ‘(7) STAFF YEARS- The number of full-time equivalent positions in the Department of Agriculture attributable to the provision of agricultural quarantine and inspection services and the administration of this subsection shall not be counted toward the limitation on the total number of full-time equivalent positions in all agencies specified in section 5(b) of the Federal Workforce Restructuring Act of 1994 (Public Law 103-226; 5 U.S.C. 3101 note) or other limitation on the total number of full-time equivalent positions.’.

SEC. 505. COMMODITY CREDIT CORPORATION INTEREST RATE.

    Notwithstanding any other provision of law, the monthly Commodity Credit Corporation interest rate applicable to loans provided for agricultural commodities by the Corporation shall be 100 basis points greater than the rate determined under the applicable interest rate formula in effect on October 1, 1995.

SEC. 506. EVERGLADES AGRICULTURAL AREA.

    (a) IN GENERAL- On July 1, 1996, out of any funds in the Treasury not otherwise appropriated, the Secretary of the Treasury shall provide $200,000,000 to the Secretary of the Interior to carry out this section.

    (b) ENTITLEMENT- The Secretary of the Interior--

      (1) shall accept the funds made available under subsection (a);

      (2) shall be entitled to receive the funds; and

      (3) shall use the funds to conduct restoration activities in the Everglades ecosystem, which may include acquiring private acreage in the Everglades Agricultural Area including approximately 52,000 acres that is commonly known as the ‘Talisman tract’.

    (c) TRANSFERRING FUNDS- The Secretary of the Interior may transfer funds to the Army Corps of Engineers, the State of Florida, or the South Florida Water Management District to carry out subsection (b)(3).

    (d) DEADLINE- Not later than December 31, 1999, the Secretary of the Interior shall utilize the funds for restoration activities referred to in subsection (b)(3).

SEC. 507. FUND FOR RURAL AMERICA.

    (a) IN GENERAL- The Secretary shall create an account called the Fund for Rural America for the purposes of providing funds for activities described in subsection (c).

    (b) COMMODITY CREDIT CORPORATION- In each of the 1996 through 1998 fiscal years, the Secretary shall transfer into the Fund for Rural America (hereafter referred to as the ‘Account’)--

      (1) $50,000,000 for the 1996 fiscal year;

      (2) $100,000,000 for the 1997 fiscal year; and

      (3) $150,000,000 for the 1998 fiscal year.

    (c) PURPOSES- Except as provided in subsection (d), the Secretary shall provide not more than one-third of the funds from the Account for activities described in paragraph (2).

      (1) RURAL DEVELOPMENT ACTIVITIES- The Secretary may use the funds in the Account for the following rural development activities authorized in:

        (A) The Housing Act of 1949 for--

          (i) direct loans to low income borrowers pursuant to section 502;

          (ii) loans for financial assistance for housing for domestic farm laborers pursuant to section 514;

          (iii) financial assistance for housing of domestic farm labor pursuant to section 516;

          (iv) grants and contracts for mutual and self help housing pursuant to section 523(b)(1)(A); and

          (v) grants for Rural Housing Preservation pursuant to section 533;

        (B) The Food Security Act of 1985 for loans to intermediary borrowers under the Rural Development Loan Fund;

        (C) Consolidated Farm and Rural Development Act for--

          (i) grants for Rural Business Enterprises pursuant to section 310B (c) and (j);

          (ii) direct loans, loan guarantees and grants for water and waste water projects pursuant to section 306; and

          (iii) down payments assistance to farmers, section 310E;

        (D) grants for outreach to socially disadvantaged farmers and ranchers pursuant to section 2501 of the Food, Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 2279); and

        (E) grants pursuant to section 204(6) of the Agricultural Marketing Act of 1946.

      (2) Research-

        (A) IN GENERAL- The Secretary may use the funds in the Account for research grants to increase the competitiveness and farm profitability, protect and enhance natural resources, increase economic opportunities in farming and rural communities and expand locally owned value added processing and marketing operations.

        (B) ELIGIBLE GRANTEE- The Secretary may make a grant under this paragraph to--

          (i) a college or university;

          (ii) a State agricultural experiment station;

          (iii) a State Cooperative Extension Service;

          (iv) a research institution or organization;

          (v) a private organization or person; or

          (iv) a Federal agency.

        (C) Use of grant-

          (i) IN GENERAL- A grant made under this paragraph may be used by a grantee for 1 or more of the following uses--

            (I) research, ranging from discovery to principles of application;

            (II) extension and related private-sector activities; and

            (III) education.

          (ii) LIMITATION- No grant shall be made for any project, determined by the Secretary, to be eligible for funding under research and commodity promotion programs administered by the Department.

        (D) Administration-

          (i) PRIORITY- In administering this paragraph, the Secretary shall--

            (I) establish priorities for allocating grants, based on needs and oppportunities of the food and agriculture system in the United States related to the goals of the paragraph;

            (II) seek and accept proposals for grants;

            (III) determine the relevance and merit of proposals through a system of peer and stakeholder review; and

            (IV) award grants on the basis of merit, quality, and relevance to advancing the national research and extension purposes.

          (ii) COMPETITIVE AWARDING- A grant under this paragraph shall be awarded on a competitive basis.

          (iii) TERMS- A grant under this paragraph shall have a term that does not exceed 5 years.

          (iv) MATCHING FUNDS- As a condition of receipts under this paragraph, the Secretary shall require the funding of the grant with equal matching funds from a non-Federal source if the grant is--

            (I) for applied research that is commodity-specific; and

            (II) not of national scope.

          (v) Administrative costs-

            (I) IN GENERAL- The Secretary may use not more than 4 percent of the funds made available under this paragraph for administrative costs incurred by the Secretary in carrying out this paragraph.

            (II) LIMITATION- Funds made available under this paragraph shall not be used--

(aa) for the construction of a new building or the acquisition, expansion, remodeling, or alteration of an existing building (including site grading and improvement and architect fees); or

(bb) in excess of ten percent of the annual allocation for commodity-specific projects not of the national scope.

    (d) LIMITATIONS- No funds from the Fund for Rural America may be used for an activity specified in subsection (c) if the current level of appropriations for the activity is less than 90 percent of the 1996 fiscal year appropriations for the activity adjusted for inflation.

Subtitle B--Options Pilot Programs and Risk Management Education

SEC. 511. SHORT TITLE.

    This subtitle may be cited as the ‘Options Pilot Programs Act of 1996’.

SEC. 512. PURPOSE.

    The purpose of this subtitle is to authorize the Secretary of Agriculture (referred to in this subtitle as the ‘Secretary’) to--

      (1) conduct research through pilot programs for 1 or more program commodities to ascertain whether futures and options contracts can provide producers with reasonable protection from the financial risks of fluctuations in price, yield, and income inherent in the production and marketing of agricultural commodities; and

      (2) provide education in the management of the financial risks inherent in the production and marketing of agricultural commodities.

SEC. 513. PILOT PROGRAMS.

    (a) IN GENERAL- The Secretary is authorized to conduct pilot programs for 1 or more supported commodities through December 31, 2002.

    (b) DISTRIBUTION OF PILOT PROGRAMS- The Secretary may operate a pilot program described in subsection (a) (referred to in this subtitle as a ‘pilot program’) in up to 100 counties for each program commodity with not more than 6 of those counties in any 1 State. A pilot program shall not be implemented in any county for more than 3 of the 1996 through 2002 calendar years.

    (c) ELIGIBLE PARTICIPANTS-

      (1) IN GENERAL- In carrying out a pilot program, the Secretary may contract with a producer who--

        (A) is eligible to participate in a price support program for a supported commodity;

        (B) desires to participate in a pilot program; and

        (C) is located in an area selected for a pilot program.

      (2) CONTRACTS- Each contract under paragraph (1) shall set forth the terms and conditions for participation in a pilot program.

    (d) ELIGIBLE MARKETS- Trades for futures and options contracts under a pilot program shall be carried out on commodity futures and options markets designated as contract markets under the Commodity Exchange Act (7 U.S.C. 1 et seq.)

SEC. 514. TERMS AND CONDITIONS.

    (a) IN GENERAL- To be eligible to participate in any pilot program for any commodity conducted under this subtitle, a producer shall meet the eligibility requirements established under this subtitle (including regulations issued under this subtitle).

    (b) RECORDKEEPING- Producers shall compile, maintain, and submit (or authorize the compilation, maintenance, and submission) of such documentation as the regulations governing any pilot program require.

SEC. 515. NOTICE.

    (a) ALTERNATIVE PROGRAMS- Pilot programs shall be alternatives to other related programs of the Department of Agriculture.

    (b) NOTICE TO PRODUCERS- The Secretary shall provide notice to each producer participating in a pilot program that--

      (1) the participation of the producer in a pilot program is voluntary; and

      (2) neither the United States, the Commodity Credit Corporation, the Federal Crop Insurance Corporation, the Department of Agriculture, nor any other Federal agency is authorized to guarantee that participants in the pilot program will be better or worse off financially as a result of participation in a pilot program than the producer would have been if the producer had not participated in a pilot program.

SEC. 516. COMMODITY CREDIT CORPORATION.

    (a) IN GENERAL- Pilot programs established under this subtitle shall be funded by and carried out through the Commodity Credit Corporation.

    (b) LIMITATION- In conducting the programs, the Secretary shall, to the maximum extent practicable, operate the pilot programs in a budget neutral manner.

SEC. 517. RISK MANAGEMENT EDUCATION.

    The Secretary shall provide such education in management of the financial risks inherent in the production and marketing of agricultural commodities as the Secretary considers appropriate.

Subtitle C--Commercial Transportation of Equine for Slaughter

SEC. 521. FINDINGS.

    Congress finds that, to ensure that equine sold for slaughter are provided humane treatment and care, it is essential to regulate the transportation, care, handling, and treatment of equine by any person engaged in the commercial transportation of equine for slaughter.

SEC. 522. DEFINITIONS.

    In this subtitle:

      (1) COMMERCE- The term ‘commerce’ means trade, traffic, transportation, or other commerce by a person--

        (A) between any State, territory, or possession of the United States, or the District of Columbia, and any place outside thereof;

        (B) between points within the same State, territory, or possession of the United States, or the District of Columbia, but through any place outside thereof; or

        (C) within any territory or possession of the United States or the District of Columbia.

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

      (3) EQUINE- The term ‘equine’ means any member of the Equidae family.

      (4) EQUINE FOR SLAUGHTER- The term ‘equine for slaughter’ means any equine that is transported, or intended to be transported, by vehicle to a slaughter facility or intermediate handler from a sale, auction, or intermediate handler by a person engaged in the business of transporting equine for slaughter.

      (5) FOAL- The term ‘foal’ means an equine that is not more than 6 months of age.

      (6) INTERMEDIATE HANDLER- The term ‘intermediate handler’ means any person regularly engaged in the business of receiving custody of equine for slaughter in connection with the transport of the equine to a slaughter facility, including a stockyard, feedlot, or assembly point.

      (7) PERSON- The term ‘person’ means any individual, partnership, firm, company, corporation, or association that regularly transports equine for slaughter in commerce, except that the term shall not include an individual or other entity that does not transport equine for slaughter on a regular basis as part of a commercial enterprise.

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

      (9) VEHICLE- The term ‘vehicle’ means any machine, truck, tractor, trailer, or semitrailer, or any combination thereof, propelled or drawn by mechanical power and used on a highway in the commercial transportation of equine for slaughter.

      (10) STALLION- The term ‘stallion’ means any uncastrated male equine that is 1 year of age or older.

SEC. 523. STANDARDS FOR HUMANE COMMERCIAL TRANSPORTATION OF EQUINE FOR SLAUGHTER.

    (a) IN GENERAL- Subject to the availability of appropriations, not later than 1 year after the date of enactment of this subtitle, the Secretary shall issue, by regulation, standards for the humane commercial transportation by vehicle of equine for slaughter.

    (b) PROHIBITION- No person engaged in the regular business of transporting equine by vehicle for slaughter as part of a commercial enterprise shall transport in commerce, to a slaughter facility or intermediate handler, an equine for slaughter except in accordance with the standards and this subtitle.

    (c) MINIMUM REQUIREMENTS- The standards shall include minimum requirements for the humane handling, care, treatment, and equipment necessary to ensure the safe and humane transportation of equine for slaughter. The standards shall require, at a minimum, that--

      (1) no equine for slaughter shall be transported for more than 24 hours without being unloaded from the vehicle and allowed to rest for at least 8 consecutive hours and given access to adequate quantities of wholesome food and potable water;

      (2) a vehicle shall provide adequate headroom for an equine for slaughter with a minimum of at least 6 feet, 6 inches of headroom from the roof and beams or other structural members overhead to floor underfoot, except that a vehicle transporting 6 equine or less shall provide a minimum of at least 6 feet of headroom from the roof and beams or other structural members overhead to floor underfoot if none of the equine are over 16 hands;

      (3) the interior of a vehicle shall--

        (A) be free of protrusions, sharp edges, and harmful objects;

        (B) have ramps and floors that are adequately covered with a nonskid nonmetallic surface; and

        (C) be maintained in a sanitary condition;

      (4) a vehicle shall--

        (A) provide adequate ventilation and shelter from extremes of weather and temperature for all equine;

        (B) be of appropriate size, height, and interior design for the number of equine being carried to prevent overcrowding; and

        (C) be equipped with doors and ramps of sufficient size and location to provide for safe loading and unloading, including unloading during emergencies;

      (5)(A) equine shall be positioned in the vehicle by size; and

      (B) stallions shall be segregated from other equine;

      (6)(A) all equine for slaughter must be fit to travel as determined by an accredited veterinarian, who shall prepare a certificate of inspection, prior to loading for transport, that--

        (i) states that the equine were inspected and satisfied the requirements of subparagraph (B);

        (ii) includes a clear description of each equine; and

        (iii) is valid for 7 days;

      (B) no equine shall be transported to slaughter if the equine is found to be--

        (i) suffering from a broken or dislocated limb;

        (ii) unable to bear weight on all 4 limbs;

        (iii) blind in both eyes; or

        (iv) obviously suffering from severe illness, injury, lameness, or physical debilitation that would make the equine unable to withstand the stress of transportation;

      (C) no foal may be transported for slaughter;

      (D) no mare in foal that exhibits signs of impending parturition may be transported for slaughter; and

      (E) no equine for slaughter shall be accepted by a slaughter facility unless the equine is--

        (i) inspected on arrival by an employee of the slaughter facility or an employee of the Department; and

        (ii) accompanied by a certificate of inspection issued by an accredited veterinarian, not more than 7 days before the delivery, stating that the veterinarian inspected the equine on a specified date.

SEC. 524. RECORDS.

    (a) IN GENERAL- A person engaged in the business of transporting equine for slaughter shall establish and maintain such records, make such reports, and provide such information as the Secretary may, by regulation, require for the purposes of carrying out, or determining compliance with, this subtitle.

    (b) MINIMUM REQUIREMENTS- The records shall include, at a minimum--

      (1) the veterinary certificate of inspection;

      (2) the names and addresses of current owners and consignors, if applicable, of the equine at the time of sale or consignment to slaughter; and

      (3) the bill of sale or other documentation of sale for each equine.

    (c) AVAILABILITY- The records shall--

      (1) accompany the equine during transport to slaughter;

      (2) be retained by any person engaged in the business of transporting equine for slaughter for a reasonable period of time, as determined by the Secretary, except that the veterinary certificate of inspection shall be surrendered at the slaughter facility to an employee or designee of the Department and kept by the Department for a reasonable period of time, as determined by the Secretary; and

      (3) on request of an officer or employee of the Department, be made available at all reasonable times for inspection and copying by the officer or employee.

SEC. 525. AGENTS.

    (a) IN GENERAL- For purposes of this subtitle, the act, omission, or failure of an individual acting for or employed by a person engaged in the business of transporting equine for slaughter, within the scope of the employment or office of the individual, shall be considered the act, omission, or failure of the person engaging in the commercial transportation of equine for slaughter as well as of the individual.

    (b) ASSISTANCE- If an equine suffers a substantial injury or illness while being transported for slaughter on a vehicle, the driver of the vehicle shall seek prompt assistance from a licensed veterinarian.

SEC. 526. COOPERATIVE AGREEMENTS.

    The Secretary is authorized to cooperate with States, political subdivisions of States, State agencies (including State departments of agriculture and State law enforcement agencies), and foreign governments to carry out and enforce this subtitle (including regulations issued under this subtitle).

SEC. 527. INVESTIGATIONS AND INSPECTIONS.

    (a) IN GENERAL- The Secretary is authorized to conduct such investigations or inspections as the Secretary considers necessary to enforce this subtitle (including any regulation issued under this subtitle).

    (b) ACCESS- For the purposes of conducting an investigation or inspection under subsection (a), the Secretary shall, at all reasonable times, have access to--

      (1) the place of business of any person engaged in the business of transporting equine for slaughter;

      (2) the facilities and vehicles used to transport the equine; and

      (3) records required to be maintained under section 834.

    (c) ASSISTANCE TO OR DESTRUCTION OF EQUINE- The Secretary shall issue such regulations as the Secretary considers necessary to permit employees or agents of the Department to--

      (1) provide assistance to any equine that is covered by this subtitle (including any regulation issued under this subtitle); or

      (2) destroy, in a humane manner, any such equine found to be suffering.

SEC. 528. INTERFERENCE WITH ENFORCEMENT.

    (a) IN GENERAL- Subject to subsection (b), a person who forcibly assaults, resists, opposes, impedes, intimidates, or interferes with any person while engaged in or on account of the performance of an official duty of the person under this subtitle shall be fined not more than $5,000 or imprisoned not more than 3 years, or both.

    (b) WEAPONS- If the person uses a deadly or dangerous weapon in connection with an action described in subsection (a), the person shall be fined not more than $10,000 or imprisoned not more than 10 years, or both.

SEC. 529. JURISDICTION OF COURTS.

    Except as provided in section 840(a)(5), a district court of the United States in any appropriate judicial district under section 1391 of title 28, United States Code, shall have jurisdiction to specifically enforce this subtitle, to prevent and restrain a violation of this subtitle, and to otherwise enforce this subtitle.

SEC. 530. CIVIL AND CRIMINAL PENALTIES.

    (a) CIVIL PENALTIES-

      (1) IN GENERAL- A person who violates this subtitle (including a regulation or standard issued under this subtitle) shall be assessed a civil penalty by the Secretary of not more than $2,000 for each violation.

      (2) SEPARATE OFFENSES- Each equine transported in violation of this subtitle shall constitute a separate offense. Each violation and each day during which a violation continues shall constitute a separate offense.

      (3) HEARINGS- No penalty shall be assessed under this subsection unless the person who is alleged to have violated this subtitle is given notice and opportunity for a hearing with respect to an alleged violation.

      (4) FINAL ORDER- An order of the Secretary assessing a penalty under this subsection shall be final and conclusive unless the aggrieved person files an appeal from the order pursuant to paragraph (5).

      (5) APPEALS- Not later than 30 days after entry of a final order of the Secretary issued pursuant to this subsection, a person aggrieved by the order may seek review of the order in the appropriate United States Court of Appeals. The Court shall have exclusive jurisdiction to enjoin, set aside, suspend (in whole or in part), or to determine the validity of the order.

      (6) NONPAYMENT OF PENALTY- On a failure to pay the penalty assessed by a final order under this section, the Secretary shall request the Attorney General to institute a civil action in a district court of the United States or other United States court for any district in which the person is found, resides, or transacts business, to collect the penalty. The court shall have jurisdiction to hear and decide the action.

    (b) CRIMINAL PENALTIES-

      (1) FIRST OFFENSE- Subject to paragraph (2), a person who knowingly violates this subtitle (or a regulation or standard issued under this subtitle) shall, on conviction of the violation, be subject to imprisonment for not more than 1 year or a fine of not more than $2,000, or both.

      (2) SUBSEQUENT OFFENSES- On conviction of a second or subsequent offense described in paragraph (1), a person shall be subject to imprisonment for not more than 3 years or to a fine of not more than $5,000, or both.

SEC. 531. PAYMENTS FOR TEMPORARY OR MEDICAL ASSISTANCE FOR EQUINE DUE TO VIOLATIONS.

    From sums received as penalties, fines, or forfeitures of property for any violation of this subtitle (including a regulation issued under this subtitle), the Secretary shall pay the reasonable and necessary costs incurred by any person in providing temporary care or medical assistance for any equine that needs the care or assistance due to a violation of this subtitle.

SEC. 532. RELATIONSHIP TO STATE LAW.

    Nothing in this subtitle prevents a State from enacting or enforcing any law (including a regulation) that is not inconsistent with this subtitle or that is more restrictive than this subtitle.

SEC. 533. AUTHORIZATION OF APPROPRIATIONS.

    (a) IN GENERAL- There are authorized to be appropriated for each fiscal year such sums as are necessary to carry out this subtitle.

    (b) LIMITATION- No provision of this subtitle shall be effective, or be enforced against any person, during a fiscal year unless funds to carry out this subtitle have been appropriated for the fiscal year.

Subtitle D--Miscellaneous

SEC. 541. LIVESTOCK DEALER TRUST.

    Title III of the Packers and Stockyards Act, 1921 (7 U.S.C. 201 et seq.), is amended by adding at the end the following:

‘SEC. 318. LIVESTOCK DEALER TRUST.

    ‘(a) FINDINGS- Congress finds that--

      ‘(1) a burden on and obstruction to commerce in livestock is caused by financing arrangements under which dealers and market agencies purchasing livestock on commission encumber, give lenders security interests in, or have liens placed on livestock purchased by the dealers and market agencies in cash sales, or on receivables from or proceeds of such sales, when payment is not made for the livestock; and

      ‘(2) the carrying out of such arrangements is contrary to the public interest.

    ‘(b) PURPOSE- The purpose of this section is to remedy the burden on and obstruction to commerce in livestock described in paragraph (1) and protect the public interest.

    ‘(c) DEFINITIONS- In this section:

      ‘(1) CASH SALE- The term ‘cash sale’ means a sale in which the seller does not expressly extend credit to the buyer.

      ‘(2) TRUST- The term ‘trust’ means 1 or more assets of a buyer that (subsequent to a cash sale of livestock) constitutes the corpus of a trust held for the benefit of a seller and consists of--

        ‘(A) account receivables and proceeds earned from the cash sale of livestock by a dealer;

        ‘(B) account receivables and proceeds of a marketing agency earned on commission from the cash sale of livestock;

        ‘(C) the inventory of the dealer or marketing agency; or

        ‘(D) livestock involved in the cash sale, if the seller has not received payment in full for the livestock and a bona fide third-party purchaser has not purchased the livestock from the dealer or marketing agency.

    ‘(d) HOLDING IN TRUST-

      ‘(1) IN GENERAL- The account receivables and proceeds generated in a cash sale made by a dealer or a market agency on commission and the inventory of the dealer or market agency shall be held by the dealer or market agency in trust for the benefit of the seller of the livestock until the seller receives payment in full for the livestock.

      ‘(2) EXEMPTION- Paragraph (1) does not apply in the case of a cash sale made by a dealer or market agency if the total amount of cash sales made by the dealer or market agency during the preceding 12 months does not exceed $250,000.

      ‘(3) DISHONOR OF INSTRUMENT OF PAYMENT- A payment in a sale described in paragraph (1) shall not be considered to be made if the instrument by which payment is made is dishonored.

      ‘(4) LOSS OF BENEFIT OF TRUST- If an instrument by which payment is made in a sale described in paragraph (1) is dishonored, the seller shall lose the benefit of the trust under paragraph (1) on the earlier of--

        ‘(A) the date that is 15 business days after date on which the seller receives notice of the dishonor; or

        ‘(B) the date that is 30 days after the final date for making payment under section 409,

      unless the seller gives written notice to the dealer or market agency of the seller’s intention to preserve the trust and submits a copy of the notice to the Secretary.

      ‘(5) RIGHTS OF THIRD-PARTY PURCHASER- The trust established under paragraph (1) shall have no effect on the rights of a bona fide third-party purchaser of the livestock, without regard to whether the livestock are delivered to the bona fide purchaser.

    ‘(e) JURISDICTION- The district courts of the United States shall have jurisdiction in a civil action--

      ‘(1) by the beneficiary of a trust described in subsection (c)(1), to enforce payment of the amount held in trust; and

      ‘(2) by the Secretary, to prevent and restrain dissipation of a trust described in subsection (c)(1).’.

SEC. 542. PLANTING OF ENERGY CROPS.

    (a) FEED GRAINS- The first sentence of section 105B(c)(1)(F)(i) of the Agricultural Act of 1949 (7 U.S.C. 1444f(c)(1)(F)(i)) is amended by inserting ‘herbaceous perennial grass, short rotation woody coppice species of trees, other energy crops designated by the Secretary with high energy content,’ after ‘mung beans,’.

    (b) WHEAT- The first sentence of section 107B(c)(1)(F)(i) of the Agricultural Act of 1949 (7 U.S.C. 1445b-3a(c)(1)(F)(i)) is amended by inserting ‘herbaceous perennial grass, short rotation woody coppice species of trees, other energy crops designated by the Secretary with high energy content,’ after ‘mung beans,’.

SEC. 543. REIMBURSABLE AGREEMENTS.

    Section 737 of Public Law 102-142 (7 U.S.C. 2277) is amended--

      (1) by striking ‘SEC. 737. Funds’ and inserting the following:

‘SEC. 737. SERVICES FOR APHIS PERFORMED OUTSIDE THE UNITED STATES.

    ‘(a) IN GENERAL- Funds’; and

      (2) by adding at the end the following:

    ‘(b) REIMBURSABLE AGREEMENTS-

      ‘(1) IN GENERAL- The Secretary of Agriculture may enter into reimbursable fee agreements with persons for preclearance at locations outside the United States of plants, plant products, animals, and articles for movement to the United States.

      ‘(2) OVERTIME, NIGHT, AND HOLIDAY WORK- Notwithstanding any other law, the Secretary of Agriculture may pay an employee of the Department of Agriculture preforming services relating to imports into and exports from the United States for overtime, night, and holiday work performed by the employee at a rate of pay established by the Secretary.

      ‘(3) REIMBURSEMENT-

        ‘(A) IN GENERAL- The Secretary of Agriculture may require persons for whom preclearance services are performed to reimburse the Secretary for any amounts paid by the Secretary for performance of the services.

        ‘(B) CREDITING OF FUNDS- All funds collected under subparagraph (A) shall be credited to the account that incurs the costs and shall remain available until expended without fiscal year limitation.

        ‘(C) LATE PAYMENT PENALTY-

          ‘(i) IN GENERAL- On failure of a person to reimburse the Secretary of Agriculture for the costs of performance of preclearance services--

            ‘(I) the Secretary may assess a late payment penalty; and

            ‘(II) the overdue funds shall accrue interest in accordance with section 3717 of title 31, United States Code.

          ‘(ii) CREDITING OF FUNDS- Any late payment penalty and any accrued interest collected under this subparagraph shall be credited to the account that incurs the costs and shall remain available until expended without fiscal year limitation.’.

SEC. 544. SWINE HEALTH PROTECTION.

    (a) TERMINATION OF STATE PRIMARY ENFORCEMENT RESPONSIBILITY- Section 10 of the Swine Health Protection Act (7 U.S.C. 3809) is amended--

      (1) by redesignating subsection (c) as subsection (d); and

      (2) by inserting after subsection (b) the following:

    ‘(c) REQUEST OF STATE OFFICIAL-

      ‘(1) IN GENERAL- On request of the Governor or other appropriate official of a State, the Secretary may terminate, effective as soon as the Secretary determines is practicable, the primary enforcement responsibility of a State under subsection (a). In terminating the primary enforcement responsibility under this subsection, the Secretary shall work with the appropriate State official to determine the level of support to be provided to the Secretary by the State under this Act.

      ‘(2) REASSUMPTION- Nothing in this subsection shall prevent a State from reassuming primary enforcement responsibility if the Secretary determines that the State meets the requirements of subsection (a).’.

    (b) ADVISORY COMMITTEE- The Swine Health Protection Act is amended--

      (1) by striking section 11 (7 U.S.C. 3810); and

      (2) by redesignating sections 12, 13, and 14 (7 U.S.C. 3811, 3812, and 3813) as sections 11, 12, and 13, respectively.

SEC. 545. COOPERATIVE WORK FOR PROTECTION, MANAGEMENT, AND IMPROVEMENT OF NATIONAL FOREST SYSTEM.

    The penultimate paragraph of the matter under the heading ‘FOREST SERVICE.’ of the first section of the Act of June 30, 1914 (38 Stat. 430, chapter 131; 16 U.S.C. 498), is amended--

      (1) by inserting ‘, management,’ after ‘the protection’;

      (2) by striking ‘national forests,’ and inserting ‘National Forest System,’;

      (3) by inserting ‘management,’ after ‘protection,’ both places it appears; and

      (4) by adding at the end the following new sentences: ‘Payment for work undertaken pursuant to this paragraph may be made from any appropriation of the Forest Service that is available for similar work if a written agreement so provides and reimbursement will be provided by a cooperator in the same fiscal year as the expenditure by the Forest Service. A reimbursement received from a cooperator that covers the proportionate share of the cooperator of the cost of the work shall be deposited to the credit of the appropriation of the Forest Service from which the payment was initially made or, if the appropriation is no longer available to the credit of an appropriation of the Forest Service that is available for similar work. The Secretary of Agriculture shall establish written rules that establish criteria to be used to determine whether the acceptance of contributions of money under this paragraph would adversely affect the ability of an officer or employee of the United States Department of Agriculture to carry out a duty or program of the officer or employee in a fair and objective manner or would compromise, or appear to compromise, the integrity of the program, officer, or employee. The Secretary of Agriculture shall establish written rules that protect the interests of the Forest Service in cooperative work agreements.’.

SEC. 546. AMENDMENT OF THE VIRUS-SERUM TOXIN ACT OF 1913.

    The Act of March 4, 1913 (37 Stat. 828, chapter 145), is amended in the eighth paragraph under the heading ‘BUREAU OF ANIMAL INDUSTRY’, commonly known as the ‘Virus-Serum Toxin Act of 1913’, by striking the 10th sentence (21 U.S.C. 158) and inserting ‘A person, firm, or corporation that knowingly violates any of the provisions of this paragraph or regulations issued under this paragraph, or knowingly forges, counterfeits, or, without authorization by the Secretary of Agriculture, uses, alters, defaces, or destroys any certificate, permit, license, or other document provided for in this paragraph, may, for each violation, after written notice and opportunity for a hearing on the record, be assessed a civil penalty by the Secretary of Agriculture of not more than $5,000, or shall, on conviction, be assessed a criminal penalty of not more than $10,000, imprisoned not more than 1 year, or both. In the course of an investigation of a suspected violation of this paragraph, the Secretary of Agriculture may issue subpoenas requiring the attendance and testimony of witnesses and the production of evidence that relates to the matter under investigation. In determining the amount of a civil penalty, the Secretary of Agriculture shall take into account the nature, circumstances, extent, and gravity of the violation, the ability of the violator to pay the penalty, the effect that the assessment would have on the ability of the violator to continue to do business, any history of such violations by the violator, the degree of culpability of the violator, and such other matters as justice may require. An order assessing a civil penalty shall be treated as a final order reviewable under chapter 158 of title 28, United State’s Code. The Secretary of Agriculture may compromise, modify, or remit a civil penalty with or without conditions. The amount of a civil penalty that is paid (including any amount agreed on in compromise) may be deducted from any sums owing by the United States to the violator. The total amount of civil penalties assessed against a violator shall not exceed $300,000 for all such violations adjudicated in a single proceeding. The validity of an order assessing a civil penalty shall not be subject to review in an action to collect the civil penalty. The unpaid amount of a civil penalty not paid in full when due shall accrue interest at the rate of interest applicable to civil judgments of the courts of the United States.’.

SEC. 547. OVERSEAS TORT CLAIMS.

    Title VII of Public Law 102-142 (105 Stat. 911) is amended by inserting after section 737 (7 U.S.C. 2277) the following:

‘SEC. 737A. OVERSEAS TORT CLAIMS.

    ‘The Secretary of Agriculture may pay a tort claim in the manner authorized in section 2672 of title 28, United States Code, if the claim arises outside the United States in connection with activities of individuals who are performing services for the Secretary. A claim may not be allowed under this section unless the claim is presented in writing to the Secretary within 2 years after the date on which the claim accrues.’.

SEC. 548. GRADUATE SCHOOL OF THE UNITED STATES DEPARTMENT OF AGRICULTURE.

    (a) PURPOSE- The purpose of this section is to authorize the continued operation of the Graduate School as a nonappropriated fund instrumentality of the Department of Agriculture.

    (b) DEFINITIONS- In this section:

      (1) BOARD- The term ‘Board’ means the General Administration Board of the Graduate School.

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

      (3) DIRECTOR- The term ‘Director’ means the Director of the Graduate School.

      (4) GRADUATE SCHOOL- The term ‘Graduate School’ means the Graduate School of the United States Department of Agriculture.

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

    (c) FUNCTIONS AND AUTHORITY-

      (1) IN GENERAL- The Graduate School shall continue as a nonappropriated fund instrumentality of the Department under the general supervision of the Secretary.

      (2) ACTIVITIES- The Graduate School shall develop and administer education, training, and professional development activities, including the provision of educational activities for Federal agencies, Federal employees, nonprofit organizations, other entities, and members of the general public.

      (3) FEES-

        (A) IN GENERAL- The Graduate School may charge and retain fair and reasonable fees for the activities that it provides based on the cost of the activities to the Graduate School.

        (B) NOT FEDERAL FUNDS- Fees under subparagraph (A) shall not be considered to be Federal funds and shall not required to be deposited in the Treasury of the United States.

      (4) NAME- The Graduate School shall operate under the name ‘United States Department of Agriculture Graduate School’ or such other name as the Graduate School may adopt.

    (d) GENERAL ADMINISTRATION BOARD-

      (1) APPOINTMENT- The Secretary shall appoint a General Administration Board to serve as a governing board subject to regulation by the Secretary.

      (2) SUPERVISION- The Graduate School shall be subject to the supervision and direction of the Board.

      (3) DUTIES- The Board shall--

        (A) formulate broad policies in accordance with which the Graduate School shall be administered;

        (B) take all steps necessary to see that the highest possible educational standards are maintained;

        (C) exercise general supervision over the administration of the Graduate School; and

        (D) establish such bylaws, rules, and procedures as may be necessary for the fulfillment of the duties described in subparagraph (A), (B), and (C).

      (4) DIRECTOR AND OTHER OFFICERS- The Board shall select the Director and such other officers as the Board may consider necessary, who shall serve on such terms and perform such duties as the Board may prescribe.

      (5) BORROWING- The Board may authorize the Director to borrow money on the credit of the Graduate School.

    (e) DIRECTOR OF THE GRADUATE SCHOOL-

      (1) DUTIES- The Director shall be responsible, subject to the supervision and direction of the Board, for carrying out the functions of the Graduate School.

      (2) INVESTMENT OF FUNDS- The Board may authorize the Director to invest funds held in excess of the current operating requirements of the Graduate School for purposes of maintaining a reasonable reserve.

    (f) LIABILITY- The Director and the members of the Board shall not be held personally liable for any loss or damage that may accrue to the funds of the Graduate School as the result of any act or exercise of discretion performed in carrying out the duties described in this section.

    (g) EMPLOYEES- Employees of the Graduate School are employees of a nonappropriated fund instrumentality and shall not be considered to be Federal employees.

    (h) NOT A FEDERAL AGENCY- The Graduate School shall not be considered to be a Federal Agency for purposes of--

      (1) chapter 171 of title 28, United States Code;

      (2) section 552 or 552a of title 28, United States Code; or

      (3) the Federal Advisory Committee Act (5 U.S.C. App.).

    (i) ACCEPTANCE OF DONATIONS- The Graduate School shall not accept a donation from a person that is actively engaged in a procurement activity with the Graduate School or has an interest that may be substantially affected by the performance or nonperformance of an official duty of a member of the Board or an employee of the Graduate School.

    (j) ADMINISTRATIVE PROVISIONS- In order to carry out the functions of the Graduate School, the Graduate School may--

      (1) accept, use, hold, dispose, and administer gifts, bequests, or devises of money, securities, and other real or personal property made for the benefit of, or in connection with, the Graduate School;

      (2) notwithstanding any other law--

        (A) acquire real property in the District of Columbia and in other places by lease, purchase, or otherwise;

        (B) maintain, enlarge, or remodel any such property; and

        (C) have sole control of any such property;

      (3) enter into contracts without regard to the Federal Property and Administrative Services Act of 1949 (40 U.S.C. 471) or any other law that prescribes procedures for the procurement of property or services by an executive agency;

      (4) dispose of real and personal property without regard to the requirements of the Federal Property and Administrative Services Act of 1949 (40 U.S.C. 471); and

      (5) use the facilities and resources of the Department, on the condition that any costs incurred by the Department that are attributable solely to Graduate School operations and all costs incurred by the Graduate School arising out of such operations shall be borne by the fees paid by or on behalf of students or by other means and not with Federal funds.

SEC. 549. STUDENT INTERN SUBSISTENCE PROGRAM.

    (a) DEFINITION- In this section, the term ‘student intern’ means a person who--

      (1) is employed by the Department of Agriculture to assist scientific, professional, administrative, or technical employees of the Department; and

      (2) is a student in good standing at an accredited college or university pursuing a course of study related to the field in which the person is employed by the Department.

    (b) PAYMENT OF CERTAIN EXPENSES BY THE SECRETARY- The Secretary of Agriculture may, out of user fee funds or funds appropriated to any agency, pay for lodging expenses, subsistence expenses, and transportation expenses of a student intern (including expenses of transportation to and from the student intern’s residence at or near the college or university attended by the student intern and the official duty station at which the student intern is employed).

SEC. 550. CONVEYANCE OF LAND TO WHITE OAK CEMETERY.

    (a) IN GENERAL-

      (1) RELEASE OF INTEREST- After execution of the agreement described in subsection (b), the Secretary of Agriculture shall release the condition stated in the deed on the land described in subsection (c) that the land be used for public purposes, and that if the land is not so used, that the land revert the United States, on the condition that the land be used exclusively for cemetery purposes, and that if the land is not so used, that the land revert the United States.

      (2) BANKHEAD-JONES ACT- Section 32(c) of the Bankhead-Jones Farm Tenant Act (7 U.S.C. 1011(c)) shall not apply to the release under paragraph (1).

    (b) AGREEMENT- The Secretary of Agriculture shall make the release under in subsection (a) on execution by the Board of Trustees of the University of Arkansas, in consideration of the release, of an agreement, satisfactory to the Secretary of Agriculture, that--

      (1) the Board of Trustees will not sell, lease, exchange, or otherwise dispose of the land described in subsection (c) except to the White Oak Cemetery Association of Washington County, Arkansas, or a successor organization, for exclusive use for an expansion of the cemetery maintained by the Association; and

      (2) the proceeds of such a disposition of the land will be deposited and held in an account open to inspection by the Secretary of Agriculture, and used, if withdrawn from the account, for public purposes.

    (c) LAND DESCRIPTION- The land described in this subsection is the land conveyed to the Board of Trustees of the University of Arkansas, with certain other land, by deed dated November 18, 1953, comprising approximately 2.2 acres located within property of the University of Arkansas in Washington, County, Arkansas, commonly known as the ‘Savor property’ and described as follows:

      The part of Section 20, Township 17 north, range 31 west, beginning at the north corner of the White Oak Cemetery and the University of Arkansas Agricultural Experiment Station farm at Washington County road #874, running west approximately 330 feet, thence south approximately 135 feet, thence southeast approximately 384 feet, thence north approximately 330 feet to the point of beginning.

SEC. 551. ADVISORY BOARD ON AGRICULTURAL AIR QUALITY.

    (a) FINDINGS- Congress finds that--

      (1) various studies have identified agriculture as a major atmospheric polluter;

      (2) Federal research activities are underway to determine the extent of the pollution problem and the extent of the role of agriculture in the problem; and

      (3) any Federal policy decisions that may result, and any Federal regulations that may be imposed on the agricultural sector, should be based on sound scientific findings;

    (b) PURPOSE- The purpose of this section is to establish an advisory board to assist and provide the Secretary of Agriculture with information, analyses, and policy recommendations for determining matters of fact and technical merit and addressing scientific questions dealing with particulate matter less than 10 microns that become lodged in human lungs (known as ‘PM10’) and other airborne particulate matter or gases that affect agricultural production yields and the economy.

    (c) ESTABLISHMENT-

      (1) IN GENERAL- The Secretary of Agriculture may establish a board to be known as the ‘Advisory Board on Agricultural Air Quality’ (referred to in this section as the ‘Board’) to advise the Secretary, through the Chief of the Natural Resources Conservation Service, with respect to carrying out this act and obligations agriculture incurred under the Clean Air Act (42 U.S.C. 7401 et seq.) and the Act entitled ‘An Act to amend the Clean Air Act to provide for attainment and maintenance of health protective national ambient air quality standards, and for other purposes’, approved November 15, 1990 (commonly known as the ‘Clean Air Act Amendments of 1990’) (42 U.S.C. 7401 et seq.).

      (2) OVERSIGHT COORDINATION- The Secretary of Agriculture shall provide oversight and coordination with respect to other Federal departments and agencies to ensure intergovernmental cooperation in research activities and to avoid duplication of Federal efforts.

    (d) COMPOSITION-

      (1) IN GENERAL- The Board shall be composed of at least 17 members appointed by the Secretary in consultation with the Administrator of the Environmental Protection Agency.

      (2) REGIONAL REPRESENTATION- The membership of the Board shall be 2 persons from each of the 6 regions of the Natural Resources Conservation Service, of whom 1 from each region shall be an agricultural producer.

      (3) ATMOSPHERIC SCIENTIST- At least 1 member of the Board shall be an atmospheric scientist.

    (e) CHAIRPERSON- The Chief of the Natural Resources Conservation Service shall--

      (1) serve as chairman of the Board; and

      (2) provide technical support to the Board.

    (f) TERM- Each member of the Board shall be appointed for a 3-year term, except that the Secretary of Agriculture shall appoint 4 of the initial members for a term of 1 year and 4 for a term of 2 years.

    (g) MEETINGS- The Board shall meet not less than twice annually.

    (h) COMPENSATION- Members of the Board shall serve without compensation, but while away from their homes or regular place of business in performance of services for the Board, members of the Board shall be allowed travel expenses, including a per diem allowance in lieu of subsistence, in the same manner as persons employed in Government service are allowed travel expenses under section 5703 of title 5, United States Code.

    (i) FUNDING- The Board shall be funded using appropriations for conservation operations.

SEC. 552. WATER SYSTEMS FOR RURAL AND NATIVE VILLAGES IN ALASKA.

    The Consolidated Farm and Rural Development Act is amended by inserting after section 306C (7 U.S.C. 1926c) the following:

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

    ‘(a) IN GENERAL- The Secretary may make grants to the State of Alaska for the benefit of rural or Native villages in Alaska to provide for the development and construction of water and wastewater systems to improve the health and sanitation conditions in those villages.

    ‘(b) MATCHING FUNDS- To be eligible to receive a grant under subsection (a), the State of Alaska shall provide equal matching funds from non-Federal sources.

    ‘(c) CONSULTATION WITH THE STATE OF ALASKA- The Secretary shall consult with the State of Alaska on a method of prioritizing the allocation of grants under subsection (a) according to the needs of, and relative health and sanitation conditions in, each village.

    ‘(d) AUTHORIZATION OF APPROPRIATIONS- There is authorized to be appropriated to carry out this section $15,000,000 for each of fiscal years 1996 through 2002.’.

SEC. 553. ELIGIBILITY FOR GRANTS TO BROADCASTING SYSTEMS.

    Section 310B(j) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1932(j)) is amended by striking ‘SYSTEMS- The’ and inserting the following: ‘SYSTEMS-

      ‘(1) DEFINITION OF STATEWIDE- In this subsection, the term ‘statewide’ means having a coverage area of not less than 90 percent of the population of a State and 80 percent of the rural land area of the State (as determined by the Secretary).

      ‘(2) GRANTS- The’.

SEC. 554. WILDLIFE HABITAT INCENTIVES PROGRAM.

    (a) IN GENERAL- The Secretary of Agriculture, in consultation with the State Technical Committee, shall establish a program in the Natural Resources Conservation Service to be known as the Wildlife Habitat Incentive Program.

    (b) COST-SHARE PAYMENTS- The Program shall make cost-share payments to landowners to develop upland wildlife, wetland wildlife, threatened and endangered species, fisheries, and other types of wildlife habitat approved by the Secretary.

    (c) FUNDING- To carry out this section, $10,000,000 shall be made available for each of fiscal years 1996 through 2002 from funds made available to carry out subchapter B of chapter 1 of subtitle D of title XII of the Food Security Act of 1985 (16 U.S.C. 3831 et seq.).

SEC. 555. INDIAN RESERVATIONS.

    (a) INDIAN RESERVATION EXTENSION AGENT PROGRAM-

      (1) REAUTHORIZATION- The program established under section 1677 of the Food, Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 5930) is reauthorized through fiscal year 2002.

      (2) REDUCED REGULATORY BURDEN- On a determination by the Secretary of Agriculture that a program carried out under section 1677 of the Act (7 U.S.C. 5930) has been satisfactorily administered for not less than 2 years, the Secretary shall implement a reduced re-application process for the continued operation of the program in order to reduce regulatory burdens on participating university and tribal entities.

    (b) MEMORANDUM OF AGREEMENT-

      (1) IN GENERAL- Not later than January 6, 1997, the Secretary shall develop and implement a formal Memorandum of Agreement with the 29 tribally controlled colleges eligible under Federal law to receive funds from the Secretary of Agriculture as partial land grant institutions.

      (2) EQUITABLE PARTICIPATION- The Memorandum shall establish programs to ensure that tribally-controlled colleges and Native American communities equitably participate in Department of Agriculture employment programs, services, and resources.

SEC. 556. ICD REIMBURSEMENT FOR OVERHEAD EXPENSES.

    Section 1542(d)(1)(D) of the Food, Agriculture, Conservation, and Trade Act of 1990 (Public Law 101-624;7 U.S.C. 5622 note) is amended by adding at the end the following: ‘Notwithstanding any other provision of law, the assistance shall include assistance for administrative and overhead expenses, to the extent that the expenses were incurred pursuant to reimbursable agreements entered into prior to September 30, 1993, the expenses do not exceed $2,000,000 per year, and the expenses were not incurred for information technology systems.’.

SEC. 557. CLARIFICATION OF EFFECT OF RESOURCE PLANNING ON ALLOCATION OR USE OF WATER.

    (a) NATIONAL FOREST SYSTEM RESOURCE PLANNING- Section 6 of the Forest and Rangeland Renewable Resources Planning Act of 1974 (16 U.S.C. 1604) is amended by adding at the end the following new subsection:

    ‘(n) LIMITATION ON AUTHORITY- Nothing in this section shall be construed to supersede, abrogate or otherwise impair any right or authority of a State to allocate quantities of water (including boundary waters). Nothing in this section shall be implemented, enforced, or construed to allow any officer or agency of the United States to utilize directly or indirectly the authorities established under this section to impose any requirement not imposed by the State which would supersede, abrogate, or otherwise impair rights to the use of water resources allocated under State law, interstate water compact, or Supreme Court decree, or held by the United States for use by a State, its political subdivisions, or its citizens. No water rights arise in the United States or any other person under the provisions of this Act.’.

    (b) AUTHORIZATION TO GRANT RIGHTS-OF-WAY- Section 501 of the Federal Land Policy and Management Act of 1976 (43 U.S.C. 1761) is amended as it applies to the Secretary of Agriculture--

      (1) in subsection (c)(1)--

        (A) by striking subparagraph (B);

        (B) in subparagraph (D), by striking ‘originally constructed’;

        (C) in subparagraph (G), by striking ‘1996’ and inserting ‘1998’; and

        (D) by redesignating subparagraphs (C) through (G) as subparagraphs (B) through (F), respectively;

      (2) in subsection (c)(3)(A), by striking the second and third sentences; and

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

    ‘(e) EFFECT ON VALID EXISTING RIGHTS- Notwithstanding any provision of this section, the Secretary of Agriculture may not require, as a condition of, or in connection with, the renewal of a right-of-way under this section, a restriction or limitation on the operation, use, repair, or replacement of an existing water supply facility which is located on or above National Forest lands or the exercise and use of existing water rights, if such condition would reduce the quantity of water which would otherwise be made available for use by the owner of such facility or water rights, or cause an increase in the cost of the water supply provided from such facility.’.

TITLE VI--CREDIT

Subtitle A--Agricultural Credit

CHAPTER 1--FARM OWNERSHIP LOANS

SEC. 601. LIMITATION ON DIRECT FARM OWNERSHIP LOANS.

    Section 302 of the Consolidated Farm and Rural Development Act (7 U.S.C. 1922) is amended by striking subsection (b) and inserting the following:

    ‘(b) DIRECT LOANS-

      ‘(1) IN GENERAL- Subject to paragraph (3), the Secretary may only make a direct loan under this subtitle to a farmer or rancher who has operated a farm or ranch for not less than 3 years and--

        ‘(A) is a qualified beginning farmer or rancher;

        ‘(B) has not received a previous direct farm ownership loan made under this subtitle; or

        ‘(C) has not received a direct farm ownership loan under this subtitle more than 10 years before the date the new loan would be made.

      ‘(2) YOUTH LOANS- The operation of an enterprise by a youth under section 311(b) shall not be considered the operation of a farm or ranch for purposes of paragraph (1).

      ‘(3) TRANSITION RULE-

        ‘(A) IN GENERAL- Subject to subparagraphs (B) and (C), paragraph (1) shall not apply to a farmer or rancher who has a direct loan outstanding under this subtitle on the date of enactment of this paragraph.

        ‘(B) LESS THAN 5 YEARS- If, as of the date of enactment of this paragraph, a farmer or rancher has had a direct loan outstanding under this subtitle for less than 5 years, the Secretary shall not make another loan to the farmer or rancher under this subtitle after the date that is 10 years after the date of enactment of this paragraph.

        ‘(C) 5 YEARS OR MORE- If, as of the date of enactment of this paragraph, a farmer or rancher has had a direct loan outstanding under this subtitle for 5 years or more, the Secretary shall not make another loan to the farmer or rancher under this subtitle after the date that is 5 years after the date of enactment of this paragraph.’.

SEC. 602. PURPOSES OF LOANS.

    Section 303 of the Consolidated Farm and Rural Development Act (7 U.S.C. 1923) is amended to read as follows:

‘SEC. 303. PURPOSES OF LOANS.

    ‘(a) ALLOWED PURPOSES-

      ‘(1) DIRECT LOANS- A farmer or rancher may use a direct loan made under this subtitle only for--

        ‘(A) acquiring or enlarging a farm or ranch;

        ‘(B) making capital improvements to a farm or ranch;

        ‘(C) paying loan closing costs related to acquiring, enlarging, or improving a farm or ranch; or

        ‘(D) paying for activities to promote soil and water conservation and protection under section 304 on the farm or ranch.

      ‘(2) GUARANTEED LOANS- A farmer or rancher may use a loan guaranteed under this subtitle only for--

        ‘(A) acquiring or enlarging a farm or ranch;

        ‘(B) making capital improvements to a farm or ranch;

        ‘(C) paying loan closing costs related to acquiring, enlarging, or improving a farm or ranch;

        ‘(D) paying for activities to promote soil and water conservation and protection under section 304 on the farm or ranch; or

        ‘(E) refinancing indebtedness.

    ‘(b) PREFERENCES- In making or guaranteeing a loan for farm or ranch purchase, the Secretary shall give a preference to a person who--

      ‘(1) has a dependent family;

      ‘(2) to the extent practicable, is able to make an initial down payment; or

      ‘(3) is an owner of livestock or farm or ranch equipment that is necessary to successfully carry out farming or ranching operations.

    ‘(c) HAZARD INSURANCE REQUIREMENT-

      ‘(1) IN GENERAL- The Secretary may not make a loan to a farmer or rancher under this subtitle unless the farmer or rancher has, or agrees to obtain, hazard insurance on any real property to be acquired or improved with the loan.

      ‘(2) DETERMINATION- Not later than 180 days after the date of enactment of this subsection, the Secretary shall determine the appropriate level of insurance to be required under paragraph (1).

      ‘(3) TRANSITIONAL PROVISION- Paragraph (1) shall not apply until the Secretary makes the determination required under paragraph (2).’.

SEC. 603. SOIL AND WATER CONSERVATION AND PROTECTION.

    Section 304 of the Consolidated Farm and Rural Development Act (7 U.S.C. 1924) is amended--

      (1) by striking subsections (b) and (c);

      (2) by striking ‘SEC. 304. (a)(1) Loans’ and inserting the following:

‘SEC. 304. SOIL AND WATER CONSERVATION AND PROTECTION.

    ‘(a) IN GENERAL- Loans’;

      (3) by striking ‘(2) In making or insuring’ and inserting the following:

    ‘(b) PRIORITY- In making or guaranteeing’;

      (4) by striking ‘(3) The Secretary’ and inserting the following:

    ‘(c) LOAN MAXIMUM- The Secretary’;

      (5) by redesignating subparagraphs (A) through (F) of subsection (a) (as amended by paragraph (2)) as paragraphs (1) through (6), respectively; and

      (6) by redesignating subparagraphs (A) and (B) of subsection (c) (as amended by paragraph (4)) as paragraphs (1) and (2), respectively.

SEC. 604. INTEREST RATE REQUIREMENTS.

    Section 307(a)(3) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1927(a)(3)) is amended--

      (1) in subparagraph (B), by inserting ‘subparagraph (D) and in’ after ‘Except as provided in’; and

      (2) by adding at the end the following:

      ‘(D) JOINT FINANCING ARRANGEMENT- If a direct farm ownership loan is made under this subtitle as part of a joint financing arrangement and the amount of the direct farm ownership loan does not exceed 50 percent of the total principal amount financed under the arrangement, the interest rate on the direct farm ownership loan shall be 4 percent annually.’.

SEC. 605. INSURANCE OF LOANS.

    Section 308 of the Consolidated Farm and Rural Development Act (7 U.S.C. 1928) is amended to read as follows:

‘SEC. 308. FULL FAITH AND CREDIT.

    ‘(a) IN GENERAL- A contract of insurance or guarantee executed by the Secretary under this title shall be an obligation supported by the full faith and credit of the United States.

    ‘(b) CONTESTABILITY- A contract of insurance or guarantee executed by the Secretary under this title shall be incontestable except for fraud or misrepresentation that the lender or any holder--

      ‘(1) has actual knowledge of at the time the contract or guarantee is executed; or

      ‘(2) participates in or condones.’.

SEC. 606. LOANS GUARANTEED.

    Section 309(h) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1929(h)) is amended by adding at the end the following:

      ‘(4) MAXIMUM GUARANTEE OF 90 PERCENT- Except as provided in paragraph (5), a loan guarantee under this title shall be for not more than 90 percent of the principal and interest due on the loan.

      ‘(5) REFINANCED LOANS GUARANTEED AT 95 PERCENT- The Secretary shall guarantee 95 percent of--

        ‘(A) in the case of a loan that solely refinances a direct loan made under this title, the principal and interest due on the loan on the date of the refinancing; or

        ‘(B) in the case of a loan that is used for multiple purposes, the portion of the loan that refinances the principal and interest due on a direct loan made under this title that is outstanding on the date the loan is guaranteed.

      ‘(6) BEGINNING FARMER LOANS GUARANTEED UP TO 95 PERCENT- The Secretary may guarantee up to 95 percent of--

        ‘(A) a farm ownership loan for acquiring a farm or ranch to a borrower who is participating in the down payment loan program under section 310E; or

        ‘(B) an operating loan to a borrower who is participating in the down payment loan program under section 310E that is made during the period that the borrower has a direct loan for acquiring a farm or ranch.’.

CHAPTER 2--OPERATING LOANS

SEC. 611. LIMITATION ON DIRECT OPERATING LOANS.

    (a) IN GENERAL- Section 311 of the Consolidated Farm and Rural Development Act (7 U.S.C. 1941) is amended by striking subsection (c) and inserting the following:

    ‘(c) DIRECT LOANS-

      ‘(1) IN GENERAL- Subject to paragraph (3), the Secretary may only make a direct loan under this subtitle to a farmer or rancher who--

        ‘(A) is a qualified beginning farmer or rancher who has not operated a farm or ranch, or who has operated a farm or ranch for not more than 5 years;

        ‘(B) has not had a previous direct operating loan under this subtitle; or

        ‘(C) has not had a previous direct operating loan under this subtitle for more than 7 years.

      ‘(2) YOUTH LOANS- In this subsection, the term ‘direct operating loan’ shall not include a loan made to a youth under subsection (b).

      ‘(3) TRANSITION RULE- If, as of the date of enactment of this paragraph, a farmer or rancher has received a direct operating loan under this subtitle during each of 4 or more previous years, the borrower shall be eligible to receive a direct operating loan under this subtitle during 3 additional years after the date of enactment of this paragraph.’.

    (b) YOUTH ENTERPRISES NOT FARMING OR RANCHING- Section 311(b) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1941(b)) is amended by adding at the end the following:

      ‘(4) YOUTH ENTERPRISES NOT FARMING OR RANCHING- The operation of an enterprise by a youth under this subsection shall not be considered the operation of a farm or ranch under this title.’.

SEC. 612. PURPOSES OF OPERATING LOANS.

    Section 312 of the Consolidated Farm and Rural Development Act (7 U.S.C. 1942) is amended to read as follows:

‘SEC. 312. PURPOSES OF LOANS.

    ‘(a) IN GENERAL- A direct loan may be made under this subtitle only for--

      ‘(1) paying the costs incident to reorganizing a farming or ranching system for more profitable operation;

      ‘(2) purchasing livestock, poultry, or farm or ranch equipment;

      ‘(3) purchasing feed, seed, fertilizer, insecticide, or farm or ranch supplies, or to meet other essential farm or ranch operating expenses, including cash rent;

      ‘(4) financing land or water development, use, or conservation;

      ‘(5) paying loan closing costs;

      ‘(6) assisting a farmer or rancher in effecting an addition to, or alteration of, the equipment, facilities, or methods of operation of a farm or ranch to comply with a standard promulgated under section 6 of the Occupational Safety and Health Act of 1970 (29 U.S.C. 655) or a standard adopted by a State under a plan approved under section 18 of the Act (29 U.S.C. 667), if the Secretary determines that without assistance under this paragraph the farmer or rancher is likely to suffer substantial economic injury due to compliance with the standard;

      ‘(7) training a limited-resource borrower receiving a loan under section 310D in maintaining records of farming and ranching operations;

      ‘(8) training a borrower under section 359;

      ‘(9) refinancing the indebtedness of a borrower if the borrower--

        ‘(A) has refinanced a loan under this subtitle not more than 4 times previously; and

        ‘(B)(i) is a direct loan borrower under this title at the time of the refinancing and has suffered a qualifying loss because of a natural disaster declared by the Secretary under this title or a major disaster or emergency designated by the President under the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5121 et seq.); or

        ‘(ii) is refinancing a debt obtained from a creditor other than the Secretary; or

      ‘(10) providing other farm, ranch, or home needs, including family subsistence.

    ‘(b) GUARANTEED LOANS- A loan may be guaranteed under this subtitle only for--

      ‘(1) paying the costs incident to reorganizing a farming or ranching system for more profitable operation;

      ‘(2) purchasing livestock, poultry, or farm or ranch equipment;

      ‘(3) purchasing feed, seed, fertilizer, insecticide, or farm or ranch supplies, or to meet other essential farm or ranch operating expenses, including cash rent;

      ‘(4) financing land or water development, use, or conservation;

      ‘(5) refinancing indebtedness;

      ‘(6) paying loan closing costs;

      ‘(7) assisting a farmer or rancher in effecting an addition to, or alteration of, the equipment, facilities, or methods of operation of a farm or ranch to comply with a standard promulgated under section 6 of the Occupational Safety and Health Act of 1970 (29 U.S.C. 655) or a standard adopted by a State under a plan approved under section 18 of the Act (29 U.S.C. 667), if the Secretary determines that without assistance under this paragraph the farmer or rancher is likely to suffer substantial economic injury due to compliance with the standard;

      ‘(8) training a borrower under section 359; or

      ‘(9) providing other farm, ranch, or home needs, including family subsistence.

    ‘(c) HAZARD INSURANCE REQUIREMENT-

      ‘(1) IN GENERAL- The Secretary may not make a loan to a farmer or rancher under this subtitle unless the farmer or rancher has, or agrees to obtain, hazard insurance on any property to be acquired with the loan.

      ‘(2) DETERMINATION- Not later than 180 days after the date of enactment of this paragraph, the Secretary shall determine the appropriate level of insurance to be required under paragraph (1).

      ‘(3) TRANSITIONAL PROVISION- Paragraph (1) shall not apply until the Secretary makes the determination required under paragraph (2).

    ‘(d) PRIVATE RESERVE-

      ‘(1) IN GENERAL- Notwithstanding any other provision of this title, the Secretary may reserve the lesser of 10 percent or $5,000 of the amount of a direct loan made under this subtitle, to be placed in a nonsupervised bank account that may be used at the discretion of the borrower for any necessary family living need or purpose that is consistent with any farming or ranching plan agreed to by the Secretary and the borrower prior to the date of the loan.

      ‘(2) ADJUSTMENT OF RESERVE- If a borrower exhausts the amount of funds reserved under paragraph (1), the Secretary may--

        ‘(A) review and adjust the farm or ranch plan referred to in paragraph (1) with the borrower and reschedule the loan;

        ‘(B) extend additional credit;

        ‘(C) use income proceeds to pay necessary farm, ranch, home, or other expenses; or

        ‘(D) provide additional available loan servicing.’.

SEC. 613. PARTICIPATION IN LOANS.

    Section 315 of the Consolidated Farm and Rural Development Act (7 U.S.C. 1945) is repealed.

SEC. 614. LINE-OF-CREDIT LOANS.

    Section 316 of the Consolidated Farm and Rural Development Act (7 U.S.C. 1946) is amended by adding at the end the following:

    ‘(c) LINE-OF-CREDIT LOANS-

      ‘(1) IN GENERAL- A loan made or guaranteed by the Secretary under this subtitle may be in the form of a line-of-credit loan.

      ‘(2) TERM- A line-of-credit loan under paragraph (1) shall terminate not later than 5 years after the date that the loan is made or guaranteed.

      ‘(3) ELIGIBILITY- For purposes of determining eligibility for a farm operating loan, each year in which a farmer or rancher takes an advance or draws on a line-of-credit loan the farmer or rancher shall be considered to have received an operating loan for 1 year.’.

SEC. 615. INSURANCE OF OPERATING LOANS.

    Section 317 of the Consolidated Farm and Rural Development Act (7 U.S.C. 1947) is repealed.

SEC. 616. SPECIAL ASSISTANCE FOR BEGINNING FARMERS AND RANCHERS.

    (a) IN GENERAL- Section 318 of the Consolidated Farm and Rural Development Act (7 U.S.C. 1948) is repealed.

    (b) CONFORMING AMENDMENT- Section 310F of the Consolidated Farm and Rural Development Act (7 U.S.C. 1936) is repealed.

SEC. 617. LIMITATION ON PERIOD FOR WHICH BORROWERS ARE ELIGIBLE FOR GUARANTEED ASSISTANCE.

    Section 319 of the Consolidated Farm and Rural Development Act (7 U.S.C. 1949) is amended by striking subsection (b) and inserting the following:

    ‘(b) Limitation on Period Borrowers Are Eligible for Guaranteed Assistance-

      ‘(1) GENERAL RULE- Subject to paragraph (2), the Secretary shall not guarantee a loan under this subtitle for a borrower for any year after the 15th year that a loan is made to, or a guarantee is provided with respect to, the borrower under this subtitle.

      ‘(2) TRANSITION RULE- If, as of October 28, 1992, a farmer or rancher has received a direct or guaranteed operating loan under this subtitle during each of 10 or more previous years, the borrower shall be eligible to receive a guaranteed operating loan under this subtitle during 5 additional years after October 28, 1992.’.

CHAPTER 3--EMERGENCY LOANS

SEC. 621. HAZARD INSURANCE REQUIREMENT.

    Section 321 of the Consolidated Farm and Rural Development Act (7 U.S.C. 1961) is amended by striking subsection (b) and inserting the following:

    ‘(b) HAZARD INSURANCE REQUIREMENT-

      ‘(1) IN GENERAL- The Secretary may not make a loan to a farmer or rancher under this subtitle to cover a property loss unless the farmer or rancher had hazard insurance that insured the property at the time of the loss.

      ‘(2) DETERMINATION- Not later than 180 days after the date of enactment of this paragraph, the Secretary shall determine the appropriate level of insurance to be required under paragraph (1).

      ‘(3) TRANSITIONAL PROVISION- Paragraph (1) shall not apply until the Secretary makes the determination required under paragraph (2).’.

SEC. 622. MAXIMUM EMERGENCY LOAN INDEBTEDNESS.

    Section 324 of the Consolidated Farm and Rural Development Act (7 U.S.C. 1964) is amended by striking ‘SEC. 324. (a) No loan’ and all that follows through the end of subsection (a) and inserting the following:

‘SEC. 324. TERMS OF LOANS.

    ‘(a) MAXIMUM AMOUNT OF LOAN- The Secretary may not make a loan under this subtitle that--

      ‘(1) exceeds the actual loss caused by a disaster; or

      ‘(2) would cause the total indebtedness of the borrower under this subtitle to exceed $500,000.’.

SEC. 623. INSURANCE OF EMERGENCY LOANS.

    Section 328 of the Consolidated Farm and Rural Development Act (7 U.S.C. 1968) is repealed.

CHAPTER 4--ADMINISTRATIVE PROVISIONS

SEC. 631. USE OF COLLECTION AGENCIES.

    Section 331 of the Consolidated Farm and Rural Development Act (7 U.S.C. 1981) is amended by adding at the end the following:

    ‘(d) PRIVATE COLLECTION AGENCY- The Secretary may use a private collection agency to collect a claim or obligation described in subsection (b)(5).’.

SEC. 632. NOTICE OF LOAN SERVICE PROGRAMS.

    Section 331D(a) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1981d(a)) is amended by striking ‘180 days delinquent in’ and inserting ‘90 days past due on’.

SEC. 633. SALE OF PROPERTY.

    Section 335 of the Consolidated Farm and Rural Development Act (7 U.S.C. 1985) is amended--

      (1) in subsection (b), by striking ‘subsection (e)’ and inserting ‘subsections (c) and (e)’;

      (2) by striking subsection (c) and inserting the following:

    ‘(c) SALE OF PROPERTY-

      ‘(1) IN GENERAL- Subject to this subsection and subsection (e)(1)(A), the Secretary shall offer to sell real property that is acquired by the Secretary under this title in the following order and method of sale:

        ‘(A) ADVERTISEMENT- Not later than 15 days after acquiring real property, the Secretary shall publicly advertise the property for sale.

        ‘(B) BEGINNING FARMER OR RANCHER-

          ‘(i) IN GENERAL- Not later than 75 days after acquiring real property, the Secretary shall attempt to sell the property to a qualified beginning farmer or rancher at current market value based on a current appraisal.

          ‘(ii) RANDOM SELECTION- If more than 1 qualified beginning farmer or rancher offers to purchase the property, the Secretary shall select between the qualified applicants on a random basis.

          ‘(iii) APPEAL OF RANDOM SELECTION- A random selection or denial by the Secretary of a beginning farmer or rancher for farm inventory property under this subparagraph shall be final and not administratively appealable.

        ‘(C) PUBLIC SALE- If no acceptable offer is received from a qualified beginning farmer or rancher under subparagraph (B) within 75 days of acquiring the real property, the Secretary shall, within 30 days, sell the property after public notice at a public sale, and, if no acceptable bid is received, by negotiated sale, at the best price obtainable.

      ‘(2) TRANSITIONAL RULES-

        ‘(A) PREVIOUS LEASE- In the case of real property acquired prior to the date of enactment of this subparagraph that the Secretary leased prior to the date of enactment of this subparagraph, the Secretary shall offer to sell the property according to paragraph (1) not later than 60 days after the lease expires.

        ‘(B) PREVIOUSLY IN INVENTORY- In the case of real property acquired prior to the date of enactment of this subparagraph that the Secretary has not leased, the Secretary shall offer to sell the property according to paragraph (1) not later than 60 days after the date of enactment of this subparagraph.

      ‘(3) INTEREST-

        ‘(A) IN GENERAL- Subject to subparagraph (B), any conveyance under this subsection shall include all of the interest of the United States, including mineral rights.

        ‘(B) CONSERVATION- The Secretary may for conservation purposes grant or sell an easement, restriction, development right, or similar legal right to a State, a political subdivision of a State, or a private nonprofit organization separately from the underlying fee or other rights owned by the Secretary.

      ‘(4) OTHER LAW- This title shall not be subject to the Federal Property and Administrative Services Act of 1949 (40 U.S.C. 471 et seq.).

      ‘(5) LEASE OF PROPERTY-

        ‘(A) IN GENERAL- Subject to subparagraph (B), the Secretary may not lease any real property acquired under this title.

        ‘(B) EXCEPTION-

          ‘(i) BEGINNING FARMER OR RANCHER- Notwithstanding paragraph (1), the Secretary may lease or contract to sell a farm or ranch acquired by the Secretary under this title to a beginning farmer or rancher if the beginning farmer or rancher qualifies for a credit sale or direct farm ownership loan but credit sale authority for loans or direct farm ownership funds, respectively, are not available.

          ‘(ii) TERM- A lease or contract to sell to a beginning farmer or rancher under clause (i) shall be until the earlier of--

            ‘(I) the date that is 18 months after the date of the lease or sale; or

            ‘(II) the date that direct farm ownership loan funds or credit sale authority for loans become available to the beginning farmer or rancher.

          ‘(iii) INCOME-PRODUCING CAPABILITY- In determining the rental rate on real property leased under this subparagraph, the Secretary shall consider the income-producing capability of the property during the term that the property is leased.

      ‘(6) DETERMINATION BY SECRETARY-

        ‘(A) EXPEDITED REVIEW- On the request of an applicant, the Secretary shall provide within 30 days of denial of the applicant’s application for an expedited review by the appropriate State Director of whether the applicant is a beginning farmer or rancher for the purpose of acquiring farm inventory property.

        ‘(B) APPEAL- The results of a review conducted by a State Director under subparagraph (A) shall be final and not administratively appealable.

        ‘(C) EFFECTS OF REVIEW-

          ‘(i) IN GENERAL- The Secretary shall maintain statistical data on the number and results of reviews conducted under subparagraph (A) and whether the reviews adversely impact on--

            ‘(I) selling farm inventory property to beginning farmers and ranchers; and

            ‘(II) disposing of real property in inventory.

          ‘(ii) NOTIFICATION- The Secretary shall notify the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate if the Secretary determines that reviews under subparagraph (A) are adversely impacting the selling of farm inventory property to beginning farmers or ranchers or on disposing of real property in inventory.’; and

      (3) in subsection (e)--

        (A) in paragraph (1)--

          (i) by striking subparagraphs (A) through (C);

          (ii) by redesignating subparagraphs (D) through (G) as subparagraphs (A) through (D), respectively;

          (iii) in subparagraph (A) (as redesignated by clause (ii))--

            (I) in clause (i)--

(aa) in the matter preceding subclause (I), by striking ‘(G)’ and inserting ‘(D)’;

(bb) by striking subclause (I) and inserting the following:

      ‘(I) the Secretary acquires property under this title that is located within an Indian reservation; and’;

(cc) in subclause (II), by striking ‘, and’ at the end and inserting a semicolon; and

(dd) by striking subclause (III); and

            (II) in clause (iii), by striking ‘The Secretary shall’ and all that follows through ‘of subparagraph (A),’ and inserting ‘Not later than 90 days after acquiring the property, the Secretary shall’; and

          (iv) in subparagraph (D) (as redesignated by clause (ii))--

            (I) in clause (i), by striking ‘(D)’ in the matter following subclause (IV) and inserting ‘(A)’;

            (II) in clause (iii)(I), by striking ‘subparagraphs (C)(i), (C)(ii), and (D)’ and inserting ‘subparagraph (A)’; and

            (III) by striking clause (v) and inserting the following:

          ‘(v) FORECLOSURE PROCEDURES-

            ‘(I) NOTICE TO BORROWER- If a borrower-owner does not voluntarily convey to the Secretary real property described in clause (i), not less than 30 days before a foreclosure sale of the property the Secretary shall provide the Indian borrower-owner with the option of--

‘(aa) requiring the Secretary to assign the loan and security instruments to the Secretary of the Interior, provided the Secretary of the Interior agrees to the assignment, releasing the Secretary of Agriculture from all further responsibility for collection of any amounts with regard to the loan secured by the real property; or

‘(bb) requiring the Secretary to assign the loan and security instruments to the tribe having jurisdiction over the reservation in which the real property is located, provided the tribe agrees to the assignment.

            ‘(II) NOTICE TO TRIBE- If a borrower-owner does not voluntarily convey to the Secretary real property described in clause (i), not less than 30 days before a foreclosure sale of the property the Secretary shall provide written notice to the Indian tribe that has jurisdiction over the reservation in which the real property is located of--

‘(aa) the sale;

‘(bb) the fair market value of the property; and

‘(cc) the requirements of this subparagraph.

            ‘(III) ASSUMED LOANS- If an Indian tribe assumes a loan under subclause (I)--

‘(aa) the Secretary shall not foreclose the loan because of any default that occurred prior to the date of the assumption;

‘(bb) the loan shall be for the lesser of the outstanding principal and interest of the loan or the fair market value of the property; and

‘(cc) the loan shall be treated as though the loan was made under Public Law 91-229 (25 U.S.C. 488 et seq.).’;

        (B) by striking paragraph (3);

        (C) in paragraph (4)--

          (i) by striking subparagraph (B);

          (ii) in subparagraph (A)--

            (I) in clause (i), by striking ‘(i)’; and

            (II) by redesignating clause (ii) as subparagraph (B); and

          (iii) in subparagraph (B) (as redesignated by clause (ii)(II)), by striking ‘clause (i)’ and inserting ‘subparagraph (A)’;

        (D) by striking paragraph (5);

        (E) by striking paragraph (6);

        (F) by redesignating paragraph (4) as paragraph (3); and

        (G) by redesignating paragraphs (7) through (10) as paragraphs (4) through (7), respectively.

SEC. 634. DEFINITIONS.

    Section 343(a) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1991(a)) is amended--

      (1) in paragraph (11)--

        (A) in the text preceding subparagraph (A), by striking ‘applicant--’ and inserting ‘applicant, regardless of whether participating in a program under section 310E--’; and

        (B) in subparagraph (F)--

          (i) by striking ‘15 percent’ and inserting ‘35 percent’; and

          (ii) by inserting before the semicolon at the end the following: ‘, except that this subparagraph shall not apply to loans under subtitle B’; and

      (2) by adding at the end the following:

      ‘(12) DEBT FORGIVENESS-

        ‘(A) IN GENERAL- The term ‘debt forgiveness’ means reducing or terminating a farm loan made or guaranteed under this title, in a manner that results in a loss to the Secretary, through--

          ‘(i) writing-down or writing-off a loan under section 353;

          ‘(ii) compromising, adjusting, reducing, or charging-off a debt or claim under section 331;

          ‘(iii) paying a loss on a guaranteed loan under section 357; or

          ‘(iv) discharging a debt as a result of bankruptcy.

        ‘(B) LOAN RESTRUCTURING- The term ‘debt forgiveness’ does not include consolidation, rescheduling, reamortization, or deferral.’.

SEC. 635. AUTHORIZATION FOR LOANS.

    Section 346 of the Consolidated Farm and Rural Development Act (7 U.S.C. 1994) is amended--

      (1) in the second sentence of subsection (a), by striking ‘with or without’ and all that follows through ‘administration’ and inserting the following: ‘without authority for the Secretary to transfer amounts between the categories’; and

      (2) by striking subsection (b) and inserting the following:

    ‘(b) AUTHORIZATION FOR LOANS-

      ‘(1) IN GENERAL- The Secretary may make or guarantee loans under subtitles A and B from the Agricultural Credit Insurance Fund established under section 309 in not more than the following amounts:

        ‘(A) FISCAL YEAR 1996- For fiscal year 1996, $3,085,000,000, of which--

          ‘(i) $585,000,000 shall be for direct loans, of which--

            ‘(I) $85,000,000 shall be for farm ownership loans under subtitle A; and

            ‘(II) $500,000,000 shall be for operating loans under subtitle B; and

          ‘(ii) $2,500,000,000 shall be for guaranteed loans, of which--

            ‘(I) $600,000,000 shall be for farm ownership loans under subtitle A; and

            ‘(II) $1,900,000,000 shall be for operating loans under subtitle B.

        ‘(B) FISCAL YEAR 1997- For fiscal year 1997, $3,165,000,000, of which--

          ‘(i) $585,000,000 shall be for direct loans, of which--

            ‘(I) $85,000,000 shall be for farm ownership loans under subtitle A; and

            ‘(II) $500,000,000 shall be for operating loans under subtitle B; and

          ‘(ii) $2,580,000,000 shall be for guaranteed loans, of which--

            ‘(I) $630,000,000 shall be for farm ownership loans under subtitle A; and

            ‘(II) $1,950,000,000 shall be for operating loans under subtitle B.

        ‘(C) FISCAL YEAR 1998- For fiscal year 1998, $3,245,000,000, of which--

          ‘(i) $585,000,000 shall be for direct loans, of which--

            ‘(I) $85,000,000 shall be for farm ownership loans under subtitle A; and

            ‘(II) $500,000,000 shall be for operating loans under subtitle B; and

          ‘(ii) $2,660,000,000 shall be for guaranteed loans, of which--

            ‘(I) $660,000,000 shall be for farm ownership loans under subtitle A; and

            ‘(II) $2,000,000,000 shall be for operating loans under subtitle B.

        ‘(D) FISCAL YEAR 1999- For fiscal year 1999, $3,325,000,000, of which--

          ‘(i) $585,000,000 shall be for direct loans, of which--

            ‘(I) $85,000,000 shall be for farm ownership loans under subtitle A; and

            ‘(II) $500,000,000 shall be for operating loans under subtitle B; and

          ‘(ii) $2,740,000,000 shall be for guaranteed loans, of which--

            ‘(I) $690,000,000 shall be for farm ownership loans under subtitle A; and

            ‘(II) $2,050,000,000 shall be for operating loans under subtitle B.

        ‘(E) FISCAL YEAR 2000- For fiscal year 2000, $3,435,000,000, of which--

          ‘(i) $585,000,000 shall be for direct loans, of which--

            ‘(I) $85,000,000 shall be for farm ownership loans under subtitle A; and

            ‘(II) $500,000,000 shall be for operating loans under subtitle B; and

          ‘(ii) $2,850,000,000 shall be for guaranteed loans, of which--

            ‘(I) $750,000,000 shall be for farm ownership loans under subtitle A; and

            ‘(II) $2,100,000,000 shall be for operating loans under subtitle B.

        ‘(F) FISCAL YEAR 2001- For fiscal year 2001, $3,435,000,000, of which--

          ‘(i) $585,000,000 shall be for direct loans, of which--

            ‘(I) $85,000,000 shall be for farm ownership loans under subtitle A; and

            ‘(II) $500,000,000 shall be for operating loans under subtitle B; and

          ‘(ii) $2,850,000,000 shall be for guaranteed loans, of which--

            ‘(I) $750,000,000 shall be for farm ownership loans under subtitle A; and

            ‘(II) $2,100,000,000 shall be for operating loans under subtitle B.

        ‘(G) FISCAL YEAR 2002- For fiscal year 2002, $3,435,000,000, of which--

          ‘(i) $585,000,000 shall be for direct loans, of which--

            ‘(I) $85,000,000 shall be for farm ownership loans under subtitle A; and

            ‘(II) $500,000,000 shall be for operating loans under subtitle B; and

          ‘(ii) $2,850,000,000 shall be for guaranteed loans, of which--

            ‘(I) $750,000,000 shall be for farm ownership loans under subtitle A; and

            ‘(II) $2,100,000,000 shall be for operating loans under subtitle B.

      ‘(2) BEGINNING FARMERS AND RANCHERS-

        ‘(A) DIRECT LOANS-

          ‘(i) FARM OWNERSHIP LOANS- Of the amounts made available under paragraph (1) for direct farm ownership loans, the Secretary shall reserve 70 percent of available funds for qualified beginning farmers and ranchers.

          ‘(ii) OPERATING LOANS- Of the amounts made available under paragraph (1) for direct operating loans, the Secretary shall reserve for qualified beginning farmers and ranchers--

            ‘(I) for fiscal year 1996, 25 percent;

            ‘(II) for fiscal year 1997, 25 percent;

            ‘(III) for fiscal year 1998, 25 percent;

            ‘(IV) for fiscal year 1999, 30 percent; and

            ‘(V) for each of fiscal years 2000 through 2002, 35 percent.

          ‘(iii) FUNDS RESERVED UNTIL SEPTEMBER 1- Funds reserved for beginning farmers or ranchers under this subparagraph shall be reserved only until September 1 of each fiscal year.

        ‘(B) GUARANTEED LOANS-

          ‘(i) FARM OWNERSHIP LOANS- Of the amounts made available under paragraph (1) for guaranteed farm ownership loans, the Secretary shall reserve 25 percent for qualified beginning farmers and ranchers.

          ‘(ii) OPERATING LOANS- Of the amounts made available under paragraph (1) for guaranteed operating loans, the Secretary shall reserve 40 percent for qualified beginning farmers and ranchers.

          ‘(iii) FUNDS RESERVED UNTIL APRIL 1- Funds reserved for beginning farmers or ranchers under this subparagraph shall be reserved only until April 1 of each fiscal year.

        ‘(C) RESERVED FUNDS FOR ALL QUALIFIED BEGINNING FARMERS AND RANCHERS- If a qualified beginning farmer or rancher meets the eligibility criteria for receiving a direct or guaranteed loan under section 302, 310E, or 311, the Secretary shall make or guarantee the loan if sufficient funds reserved under this paragraph are available to make or guarantee the loan.

      ‘(3) TRANSFER FOR DOWN PAYMENT LOANS-

        ‘(A) IN GENERAL- Notwithstanding subsection (a), subject to subparagraph (B)--

          ‘(i) beginning on August 1 of each fiscal year, the Secretary shall use available unsubsidized guaranteed farm operating loan funds to fund approved direct farm ownership loans to beginning farmers and ranchers under the down payment loan program established under section 310E; and

          ‘(ii) beginning on September 1 of each fiscal year, the Secretary shall use available unsubsidized guaranteed farm operating loan funds to fund approved direct farm ownership loans to beginning farmers and ranchers.

        ‘(B) LIMITATION- The Secretary shall limit the transfer of funds under subparagraph (A) so that all guaranteed farm operating loans that have been approved, or will be approved, during the fiscal year shall be funded to extent of appropriated amounts.

      ‘(4) TRANSFER FOR CREDIT SALES OF FARM INVENTORY PROPERTY-

        ‘(A) IN GENERAL- Notwithstanding subsection (a), subject to subparagraphs (B) and (C), beginning on September 1 of each fiscal year, the Secretary may use available emergency disaster loan funds appropriated for the fiscal year to fund the credit sale of farm real estate in the inventory of the Secretary.

        ‘(B) SUPPLEMENTAL APPROPRIATIONS- The transfer authority provided under subparagraph (A) does not include any emergency disaster loan funds made available to the Secretary for any fiscal year as a result of a supplemental appropriation made by Congress.

        ‘(C) LIMITATION- The Secretary shall limit the transfer of funds under subparagraph (A) so that all emergency disaster loans that have been approved, or will be approved, during the fiscal year shall be funded to extent of appropriated amounts.’.

SEC. 636. LIST OF CERTIFIED LENDERS AND INVENTORY PROPERTY DEMONSTRATION PROJECT.

    (a) IN GENERAL- Section 351 of the Consolidated Farm and Rural Development Act (7 U.S.C. 1999) is amended--

      (1) in subsection (f)--

        (A) by striking ‘Each Farmers Home Administration county supervisor’ and inserting ‘The Secretary’;

        (B) by striking ‘approved lenders’ and inserting ‘lenders’; and

        (C) by striking ‘the Farmers Home Administration’; and

      (2) by striking subsection (h).

    (b) TECHNICAL AMENDMENTS-

      (1) Section 1320 of the Food Security Act of 1985 (Public Law 99-198; 7 U.S.C. 1999 note) is amended by striking ‘Effective only’ and all that follows through ‘1995, the’ and inserting ‘The’.

      (2) Section 351(a) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1999) is amended--

        (A) by striking ‘SEC. 351. (a) The’ and inserting the following:

‘SEC. 351. INTEREST RATE REDUCTION PROGRAM.

    ‘(a) ESTABLISHMENT OF PROGRAM-

      ‘(1) IN GENERAL- The’; and

        (B) by adding at the end the following:

      ‘(2) TERMINATION OF AUTHORITY- The authority provided by this subsection shall terminate on September 30, 2002.’.

SEC. 637. HOMESTEAD PROPERTY.

    Section 352(c) of the Consolidated Farm and Rural Development Act (7 U.S.C. 2000(c)) is amended--

      (1) in paragraph (1)(A), by striking ‘90’ each place it appears and inserting ‘30’; and

      (2) in paragraph (6), by striking ‘Within 30’ and all that follows through ‘title,’ and insert ‘Not later than the date of acquisition of the property securing a loan made under this title (or, in the case of real property in inventory on the effective date of the Agricultural Reform and Improvement Act of 1996, not later than 5 days after the date of enactment of the Act),’ and by striking the second sentence.

SEC. 638. RESTRUCTURING.

    Section 353 of the Consolidated Farm and Rural Development Act (7 U.S.C. 2001) is amended--

      (1) in subsection (c)--

        (A) in paragraph (3) by striking subparagraph (C) and inserting the following:

        ‘(C) CASH FLOW MARGIN-

          ‘(i) ASSUMPTION- For the purpose of assessing under subparagraph (A) the ability of a borrower to meet debt obligations and continue farming operations, the Secretary shall assume that the borrower needs up to 110 percent of the amount indicated for payment of farm operating expenses, debt service obligations, and family living expenses.

          ‘(ii) AVAILABLE INCOME- If an amount up to 110 percent of the amount determined under subparagraph (A) is available, the Secretary shall consider the income of the borrower to be adequate to meet all expenses, including the debt obligations of the borrower.’; and

        (B) by striking paragraph (6) and inserting the following:

      ‘(6) TERMINATION OF LOAN OBLIGATIONS- The obligations of a borrower to the Secretary under a loan shall terminate if--

        ‘(A) the borrower satisfies the requirements of paragraphs (1) and (2) of subsection (b);

        ‘(B) the value of the restructured loan is less than the recovery value; and

        ‘(C) not later than 90 days after receipt of the notification described in paragraph (4)(B), the borrower pays (or obtains third-party financing to pay) the Secretary an amount equal to the current market value.’;

      (2) by striking subsection (k); and

      (3) by redesignating subsections (l) through (p) as subsections (k) through (o), respectively.

SEC. 639. TRANSFER OF INVENTORY LANDS.

    Section 354 of the Consolidated Farm and Rural Development Act (7 U.S.C. 2002) is amended--

      (1) in the matter preceding paragraph (1), by striking ‘The Secretary, without reimbursement,’ and inserting the following:

    ‘(a) IN GENERAL- Subject to subsection (b), the Secretary’;

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

      ‘(2) that is eligible to be disposed of in accordance with section 335; and’; and

      (3) by adding at the end the following:

    ‘(b) CONDITIONS- The Secretary may not transfer any property or interest under subsection (a) unless--

      ‘(1) at least 2 public notices are given of the transfer;

      ‘(2) if requested, at least 1 public meeting is held prior to the transfer; and

      ‘(3) the Governor and at least 1 elected county official are consulted prior to the transfer.’.

SEC. 640. IMPLEMENTATION OF TARGET PARTICIPATION RATES.

    Section 355 of the Consolidated Farm and Rural Development Act (7 U.S.C. 2003) is amended by adding at the end the following:

    ‘(f) IMPLEMENTATION CONSISTENT WITH SUPREME COURT HOLDING- Not later than 180 days after the date of enactment of this subsection, the Secretary shall ensure that the implementation of this section is consistent with the holding of the Supreme Court in Adarand Constructors, Inc. v. Federico Pena, Secretary of Transportation, 63 U.S.L.W. 4523 (U.S. June 12, 1995).’.

SEC. 641. DELINQUENT BORROWERS AND CREDIT STUDY.

    The Consolidated Farm and Rural Development Act (7 U.S.C. 1921 et seq.) is amended by adding at the end the following:

‘SEC. 372. PAYMENT OF INTEREST AS A CONDITION OF LOAN SERVICING FOR BORROWERS.

    ‘The Secretary may not reschedule or reamortize a loan for a borrower under this title who has not requested consideration under section 331D(e) unless the borrower pays a portion, as determined by the Secretary, of the interest due on the loan.

‘SEC. 373. LOAN AND LOAN SERVICING LIMITATIONS

    ‘(a) DELINQUENT BORROWERS PROHIBITED FROM OBTAINING DIRECT OPERATING LOANS- The Secretary may not make a direct operating loan under subtitle B to a borrower who is delinquent on any loan made or guaranteed under this title.

    ‘(b) LOANS PROHIBITED FOR BORROWERS THAT HAVE RECEIVED DEBT FORGIVENESS-

      ‘(1) IN GENERAL- Except as provided in paragraph (2), the Secretary may not make or guarantee a loan under this title to a borrower who received debt forgiveness under this title.

      ‘(2) EXCEPTION- The Secretary may make a direct or guaranteed farm operating loan for paying annual farm or ranch operating expenses to a borrower who was restructured with debt write-down under section 353.

    ‘(c) NO MORE THAT 1 DEBT FORGIVENESS FOR A BORROWER ON A DIRECT LOAN- The Secretary may not provide debt forgiveness to a borrower on a direct loan made under this title if the borrower has received debt forgiveness on another direct loan under this title.

‘SEC. 374. CREDIT STUDY.

    ‘(a) IN GENERAL- The Secretary of Agriculture shall perform a study and report to the Committee on Agriculture in the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry in the Senate on the demand for and availability of credit in rural areas for agriculture, rural housing, and rural development.

    ‘(b) PURPOSE- The purpose of the study is to ensure that Congress has current and comprehensive information to consider as Congress deliberates on the credit needs of rural America and the availability of credit to satisfy the needs of rural America.

    ‘(c) ITEMS IN STUDY- The study should be based on the most current available data and should include--

      ‘(1) rural demand for credit from the Farm Credit System, the ability of the Farm Credit System to meet the demand, and the extent to which the Farm Credit System provided loans to satisfy the demand;

      ‘(2) rural demand for credit from the nation’s banking system, the ability of banks to meet the demand, and the extent to which banks provided loans to satisfy the demand;

      ‘(3) rural demand for credit from the Secretary, the ability of the Secretary to meet the demand, and the extent to which the Secretary provided loans to satisfy the demand;

      ‘(4) rural demand for credit from other Federal agencies, the ability of the agencies to meet the demand, and the extent to which the agencies provided loans to satisfy the demand;

      ‘(5) what measure or measures exist to gauge the overall demand for rural credit and the extent to which rural demand for credit is satisfied, and what the measures have shown;

      ‘(6) a comparison of the interest rates and terms charged by the Farm Credit System Farm Credit Banks, production credit associations, and banks for cooperatives with the rates and terms charged by the nation’s banks for credit of comparable risk and maturity;

      ‘(7) the advantages and disadvantages of the modernization and expansion proposals of the Farm Credit System on the Farm Credit System, the nation’s banking system, rural users of credit, local rural communities, and the Federal Government, including--

        ‘(A) any added risk to the safety and soundness of the Farm Credit System that may result from approval of a proposal; and

        ‘(B) any positive or adverse impacts on competition between the Farm Credit System and the nation’s banks in providing credit to rural users;

      ‘(8) the nature and extent of the unsatisfied rural credit need that the Farm Credit System proposal are supposed to address and what aspects of the present Farm Credit System prevent the Farm Credit System from meeting the need;

      ‘(9) the advantages and disadvantages of the proposal by commercial bankers to allow banks access to the Farm Credit System as a funding source on the Farm Credit System, the nation’s banking system, rural users of credit, local rural communities, and the Federal Government, including--

        ‘(A) any added risk to the safety and soundness of the Farm Credit System that may result from approval of the proposal; and

        ‘(B) any positive or adverse impacts on competition between the Farm Credit System and the nation’s banks in providing credit to rural users; and

      ‘(10) problems that commercial banks have in obtaining capital for lending in rural areas, how access to Farm Credit System funds would improve the availability of capital in rural areas in ways that cannot be achieved in the present system, and the possible effects on the viability of the Farm Credit System of granting banks access to Farm Credit System funds.

    ‘(d) INTERAGENCY TASK FORCE- In completing the study, the Secretary shall use, among other things, data and information obtained by the interagency task force on rural credit.’.

CHAPTER 5--GENERAL PROVISIONS

SEC. 651. CONFORMING AMENDMENTS.

    (a) Section 307(a) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1927(a)) is amended--

      (1) in paragraph (4), by striking ‘304(b), 306(a)(1), and 310B’ and inserting ‘306(a)(1) and 310B’; and

      (2) in paragraph (6)(B)--

        (A) by striking clauses (i), (ii), and (vii);

        (B) in clause (v), by adding ‘and’ at the end;

        (C) in clause (vi), by striking ‘, and’ at the end and inserting a period; and

        (D) by redesignating clauses (iii) through (vi) as clauses (i) through (iv), respectively.

    (b) The second sentence of section 309(g)(1) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1929(g)(1)) is amended by striking ‘section 308,’.

    (c) Section 309A of the Consolidated Farm and Rural Development Act (7 U.S.C. 1929a) is amended--

      (1) in the second sentence of subsection (a), by striking ‘304(b), 306(a)(1), 306(a)(14), 310B, and 312(b)’ and inserting ‘306(a)(1), 306(a)(14), and 310B’; and

      (2) in subsection (b), by striking ‘and section 308’.

    (d) Section 310B(d) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1932(d)) is amended--

      (1) by striking ‘sections 304(b), 310B, and 312(b)’ each place it appears in paragraphs (2), (3), and (4) and inserting ‘this section’; and

      (2) in paragraph (6), by striking ‘this section, section 304, or section 312’ and inserting ‘this section’.

    (e) The first sentence of section 310D(a) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1934(a)) is amended by striking ‘paragraphs (1) through (5) of section 303(a), or subparagraphs (A) through (E) of section 304(a)(1)’ and inserting ‘section 303(a), or paragraphs (1) through (5) of section 304(b)’.

    (f) Section 311(b)(1) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1941(b)(1)) is amended by striking ‘and for the purposes specified in section 312’.

    (g) Section 316(a) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1946(a)) is amended by striking paragraph (3).

    (h) Section 343 of the Consolidated Farm and Rural Development Act (7 U.S.C. 1991) is amended--

      (1) in subsection (a)(10), by striking ‘recreation loan (RL) under section 304,’; and

      (2) in subsection (b)--

        (A) in the matter preceding paragraph (1), by striking ‘351(h),’; and

        (B) by striking paragraph (4) and inserting the following:

      ‘(4) PRESERVATION LOAN SERVICE PROGRAM- The term ‘preservation loan service program’ means homestead retention as authorized under section 352.’.

    (i) The first sentence of section 344 of the Consolidated Farm and Rural Development Act (7 U.S.C. 1992) is amended by striking ‘304(b), 306(a)(1), 310B, 312(b), or 312(c)’ and inserting ‘306(a)(1), 310B, or 312(c)’.

    (j) Section 353(l) of the Consolidated Farm and Rural Development Act (as redesignated by section 638(3)) is further amended by striking ‘and subparagraphs (A)(i) and (C)(i) of section 335(e)(1),’.

Subtitle B--Farm Credit System

CHAPTER 1--AGRICULTURAL MORTGAGE SECONDARY MARKET

SEC. 661. DEFINITION OF REAL ESTATE.

    Section 8.0(1)(B)(ii) of the Farm Credit Act of 1971 (12 U.S.C. 2279aa(1)(B)(ii)) is amended by striking ‘with a purchase price’ and inserting ‘, excluding the land to which the dwelling is affixed, with a value’.

SEC. 662. DEFINITION OF CERTIFIED FACILITY.

    Section 8.0(3) of the Farm Credit Act of 1971 (12 U.S.C. 2279aa(3)) is amended--

      (1) in subparagraph (A), by striking ‘a secondary marketing agricultural loan’ and inserting ‘an agricultural mortgage marketing’; and

      (2) in subparagraph (B), by striking ‘, but only’ and all that follows through ‘(9)(B)’.

SEC. 663. DUTIES OF FEDERAL AGRICULTURAL MORTGAGE CORPORATION.

    Section 8.1(b) of the Farm Credit Act of 1971 (12 U.S.C. 2279aa-1(b)) is amended--

      (1) in paragraph (2), by striking ‘and’ at the end;

      (2) in paragraph (3), by striking the period at the end and inserting ‘; and’; and

      (3) by adding at the end the following:

      ‘(4) purchase qualified loans and issue securities representing interests in, or obligations backed by, the qualified loans, guaranteed for the timely repayment of principal and interest.’.

SEC. 664. POWERS OF THE CORPORATION.

    Section 8.3(c) of the Farm Credit Act of 1971 (12 U.S.C. 2279aa-3(c)) is amended--

      (1) by redesignating paragraphs (13) and (14) as paragraphs (14) and (15), respectively; and

      (2) by inserting after paragraph (12) the following:

      ‘(13) To purchase, hold, sell, or assign a qualified loan, to issue a guaranteed security, representing an interest in, or an obligation backed by, the qualified loan, and to perform all the functions and responsibilities of an agricultural mortgage marketing facility operating as a certified facility under this title.’.

SEC. 665. FEDERAL RESERVE BANKS AS DEPOSITARIES AND FISCAL AGENTS.

    Section 8.3 of the Farm Credit Act of 1971 (12 U.S.C. 2279aa-3) is amended--

      (1) in subsection (d), by striking ‘may act as depositories for, or’ and inserting ‘shall act as depositories for, and’; and

      (2) in subsection (e), by striking ‘Secretary of the Treasury may authorize the Corporation to use’ and inserting ‘Corporation shall have access to’.

SEC. 666. CERTIFICATION OF AGRICULTURAL MORTGAGE MARKETING FACILITIES.

    Section 8.5 of the Farm Credit Act of 1971 (12 U.S.C. 2279aa-5) is amended--

      (1) in subsection (a)--

        (A) in paragraph (1), by inserting ‘(other than the Corporation)’ after ‘agricultural mortgage marketing facilities’; and

        (B) in paragraph (2), by inserting ‘(other than the Corporation)’ after ‘agricultural mortgage marketing facility’; and

      (2) in subsection (e)(1), by striking ‘(other than the Corporation)’.

SEC. 667. GUARANTEE OF QUALIFIED LOANS.

    Section 8.6 of the Farm Credit Act of 1971 (12 U.S.C. 2279aa-6) is amended--

      (1) in subsection (a)(1)--

        (A) by striking ‘Corporation shall guarantee’ and inserting the following: ‘Corporation--

        ‘(A) shall guarantee’;

        (B) by striking the period at the end and inserting ‘; and’; and

        (C) by adding at the end the following:

        ‘(B) may issue a security, guaranteed as to the timely payment of principal and interest, that represents an interest solely in, or an obligation fully backed by, a pool consisting of qualified loans that--

          ‘(i) meet the standards established under section 8.8; and

          ‘(ii) have been purchased and held by the Corporation.’;

      (2) in subsection (d)--

        (A) by striking paragraph (4); and

        (B) by redesignating paragraphs (5), (6), and (7) as paragraphs (4), (5), and (6), respectively; and

      (3) in subsection (g)(2), by striking ‘section 8.0(9)(B))’ and inserting ‘section 8.0(9))’.

SEC. 668. MANDATORY RESERVES AND SUBORDINATED PARTICIPATION INTERESTS ELIMINATED.

    (a) GUARANTEE OF QUALIFIED LOANS- Section 8.6 of the Farm Credit Act of 1971 (12 U.S.C. 2279aa-6) is amended by striking subsection (b).

    (b) RESERVES AND SUBORDINATED PARTICIPATION INTERESTS- Section 8.7 of the Farm Credit Act of 1971 (12 U.S.C. 2279aa-7) is repealed.

    (c) CONFORMING AMENDMENTS-

      (1) Section 8.0(9)(B)(i) of the Farm Credit Act of 1971 (12 U.S.C. 2279aa(9)(B)(i)) is amended by striking ‘8.7, 8.8,’ and inserting ‘8.8’.

      (2) Section 8.6(a)(2) of the Farm Credit Act of 1971 (12 U.S.C. 2279aa-6(a)(2)) is amended by striking ‘subject to the provisions of subsection (b)’.

SEC. 669. STANDARDS REQUIRING DIVERSIFIED POOLS.

    (a) IN GENERAL- Section 8.6 of the Farm Credit Act of 1971 (12 U.S.C. 2279aa-6) (as amended by section 668) is amended--

      (1) by striking subsection (c); and

      (2) by redesignating subsections (d) through (g) as subsections (b) through (e), respectively.

    (b) CONFORMING AMENDMENTS-

      (1) Section 8.0(9)(B)(i) of the Farm Credit Act of 1971 (12 U.S.C. 2279aa(9)(B)(i)) is amended by striking ‘(f)’ and inserting ‘(d)’.

      (2) Section 8.13(a) of the Farm Credit Act of 1971 (12 U.S.C. 2279aa-13(a)) is amended by striking ‘sections 8.6(b) and’ in each place it appears and inserting ‘section’.

      (3) Section 8.32(b)(1)(C) of the Farm Credit Act of 1971 (12 U.S.C. 2279bb-1(b)(1)(C)) is amended--

        (A) by striking ‘shall’ and inserting ‘may’; and

        (B) by inserting ‘(as in effect before the date of the enactment of the Agricultural Reform and Improvement Act of 1996)’ before the semicolon.

      (4) Section 8.6(b) of the Farm Credit Act of 1971 (12 U.S.C. 2279aa-6(b)) (as redesignated by subsection (a)(2)) is amended--

        (A) by striking paragraph (4) (as redesignated by section 667(2)(B)); and

        (B) by redesignating paragraphs (5) and (6) (as redesignated by section 667(2)(B)) as paragraphs (4) and (5), respectively.

SEC. 670. SMALL FARMS.

    Section 8.8(e) of the Farm Credit Act of 1971 (12 U.S.C. 2279aa-8(e)) is amended by adding at the end the following: ‘The Board shall promote and encourage the inclusion of qualified loans for small farms and family farmers in the agricultural mortgage secondary market.’.

SEC. 671. DEFINITION OF AN AFFILIATE.

    Section 8.11(e) of the Farm Credit Act of 1971 (21 U.S.C. 2279aa-11(e)) is amended--

      (1) by striking ‘a certified facility or’; and

      (2) by striking ‘paragraphs (3) and (7), respectively, of section 8.0’ and inserting ‘section 8.0(7)’.

SEC. 672. STATE USURY LAWS SUPERSEDED.

    Section 8.12 of the Farm Credit Act of 1971 (12 U.S.C. 2279aa-12) is amended by striking subsection (d) and inserting the following:

    ‘(d) STATE USURY LAWS SUPERSEDED- A provision of the Constitution or law of any State shall not apply to an agricultural loan made by an originator or a certified facility in accordance with this title for sale to the Corporation or to a certified facility for inclusion in a pool for which the Corporation has provided, or has committed to provide, a guarantee, if the loan, not later than 180 days after the date the loan was made, is sold to the Corporation or included in a pool for which the Corporation has provided a guarantee, if the provision--

      ‘(1) limits the rate or amount of interest, discount points, finance charges, or other charges that may be charged, taken, received, or reserved by an agricultural lender or a certified facility; or

      ‘(2) limits or prohibits a prepayment penalty (either fixed or declining), yield maintenance, or make-whole payment that may be charged, taken, or received by an agricultural lender or a certified facility in connection with the full or partial payment of the principal amount due on a loan by a borrower in advance of the scheduled date for the payment under the terms of the loan, otherwise known as a prepayment of the loan principal.’.

SEC. 673. EXTENSION OF CAPITAL TRANSITION PERIOD.

    Section 8.32 of the Farm Credit Act of 1971 (12 U.S.C. 2279bb-1) is amended--

      (1) in the first sentence of subsection (a), by striking ‘Not later than the expiration of the 2-year period beginning on December 13, 1991,’ and inserting ‘Not sooner than the expiration of the 3-year period beginning on the date of enactment of the Agricultural Reform and Improvement Act of 1996,’;

      (2) in the first sentence of subsection (b)(2), by striking ‘5-year’ and inserting ‘8-year’; and

      (3) in subsection (d)--

        (A) in the first sentence--

          (i) by striking ‘The regulations establishing’ and inserting the following:

      ‘(1) IN GENERAL- The regulations establishing’; and

          (ii) by striking ‘shall contain’ and inserting the following: ‘shall--

        ‘(A) be issued by the Director for public comment in the form of a notice of proposed rulemaking, to be first published after the expiration of the period referred to in subsection (a); and

        ‘(B) contain’; and

        (B) in the second sentence, by striking ‘The regulations shall’ and inserting the following:

      ‘(2) SPECIFICITY- The regulations referred to in paragraph (1) shall’.

SEC. 674. MINIMUM CAPITAL LEVEL.

    Section 8.33 of the Farm Credit Act of 1971 (12 U.S.C. 2279bb-2) is amended to read as follows:

‘SEC. 8.33. MINIMUM CAPITAL LEVEL.

    ‘(a) IN GENERAL- Except as provided in subsection (b), for purposes of this subtitle, the minimum capital level for the Corporation shall be an amount of core capital equal to the sum of--

      ‘(1) 2.75 percent of the aggregate on-balance sheet assets of the Corporation, as determined in accordance with generally accepted accounting principles; and

      ‘(2) 0.75 percent of the aggregate off-balance sheet obligations of the Corporation, which, for the purposes of this subtitle, shall include--

        ‘(A) the unpaid principal balance of outstanding securities that are guaranteed by the Corporation and backed by pools of qualified loans;

        ‘(B) instruments that are issued or guaranteed by the Corporation and are substantially equivalent to instruments described in subparagraph (A); and

        ‘(C) other off-balance sheet obligations of the Corporation.

    ‘(b) TRANSITION PERIOD-

      ‘(1) IN GENERAL- For purposes of this subtitle, the minimum capital level for the Corporation--

        ‘(A) prior to January 1, 1997, shall be the amount of core capital equal to the sum of--

          ‘(i) 0.45 percent of aggregate off-balance sheet obligations of the Corporation;

          ‘(ii) 0.45 percent of designated on-balance sheet assets of the Corporation, as determined under paragraph (2); and

          ‘(iii) 2.50 percent of on-balance sheet assets of the Corporation other than assets designated under paragraph (2);

        ‘(B) during the 1-year period ending December 31, 1997, shall be the amount of core capital equal to the sum of--

          ‘(i) 0.55 percent of aggregate off-balance sheet obligations of the Corporation;

          ‘(ii) 1.20 percent of designated on-balance sheet assets of the Corporation, as determined under paragraph (2); and

          ‘(iii) 2.55 percent of on-balance sheet assets of the Corporation other than assets designated under paragraph (2);

        ‘(C) during the 1-year period ending December 31, 1998, shall be the amount of core capital equal to--

          ‘(i) if the Corporation’s core capital is not less than $25,000,000 on January 1, 1998, the sum of--

            ‘(I) 0.65 percent of aggregate off-balance sheet obligations of the Corporation;

            ‘(II) 1.95 percent of designated on-balance sheet assets of the Corporation, as determined under paragraph (2); and

            ‘(III) 2.65 percent of on-balance sheet assets of the Corporation other than assets designated under paragraph (2); or

          ‘(ii) if the Corporation’s core capital is less than $25,000,000 on January 1, 1998, the amount determined under subsection (a); and

        ‘(D) on and after January 1, 1999, shall be the amount determined under subsection (a).

      ‘(2) DESIGNATED ON-BALANCE SHEET ASSETS- For purposes of this subsection, the designated on-balance sheet assets of the Corporation shall be--

        ‘(A) the aggregate on-balance sheet assets of the Corporation acquired under section 8.6(e); and

        ‘(B) the aggregate amount of qualified loans purchased and held by the Corporation under section 8.3(c)(13).’.

SEC. 675. CRITICAL CAPITAL LEVEL.

    Section 8.34 of the Farm Credit Act of 1971 (12 U.S.C. 2279bb-3) is amended to read as follows:

‘SEC. 8.34. CRITICAL CAPITAL LEVEL.

    ‘For purposes of this subtitle, the critical capital level for the Corporation shall be an amount of core capital equal to 50 percent of the total minimum capital amount determined under section 8.33.’.

SEC. 676. ENFORCEMENT LEVELS.

    Section 8.35(e) of the Farm Credit Act of 1971 (12 U.S.C. 2279bb-4(e)) is amended by striking ‘during the 30-month period beginning on the date of the enactment of this section,’ and inserting ‘during the period beginning on December 13, 1991, and ending on the effective date of the risk based capital regulation issued by the Director under section 8.32,’.

SEC. 677. RECAPITALIZATION OF THE CORPORATION.

    Title VIII of the Farm Credit Act of 1971 (12 U.S.C. 2279aa et seq.) is amended by adding at the end the following:

‘SEC. 8.38. RECAPITALIZATION OF THE CORPORATION.

    ‘(a) MANDATORY RECAPITALIZATION- The Corporation shall increase the core capital of the Corporation to an amount equal to or greater than $25,000,000, not later than the earlier of--

      ‘(1) the date that is 2 years after the date of enactment of this section; or

      ‘(2) the date that is 180 days after the end of the first calendar quarter that the aggregate on-balance sheet assets of the Corporation, plus the outstanding principal of the off-balance sheet obligations of the Corporation, equal or exceed $2,000,000,000.

    ‘(b) RAISING CORE CAPITAL- In carrying out this section, the Corporation may issue stock under section 8.4 and otherwise employ any recognized and legitimate means of raising core capital in the power of the Corporation under section 8.3.

    ‘(c) LIMITATION ON GROWTH OF TOTAL ASSETS- During the 2-year period beginning on the date of enactment of this section, the aggregate on-balance sheet assets of the Corporation plus the outstanding principal of the off-balance sheet obligations of the Corporation may not exceed $3,000,000,000 if the core capital of the Corporation is less than $25,000,000.

    ‘(d) ENFORCEMENT- If the Corporation fails to carry out subsection (a) by the date required under paragraph (1) or (2) of subsection (a), the Corporation may not purchase a new qualified loan or issue or guarantee a new loan-backed security until the core capital of the Corporation is increased to an amount equal to or greater than $25,000,000.’.

SEC. 678. LIQUIDATION OF THE FEDERAL AGRICULTURAL MORTGAGE CORPORATION.

    Title VIII of the Farm Credit Act of 1971 (12 U.S.C. 2279aa et seq.) (as amended by section 677) is amended by adding at the end the following:

‘Subtitle C--Receivership, Con-servatorship, and Liquidation of the Federal Agricultural Mortgage Corporation

‘SEC. 8.41. CONSERVATORSHIP; LIQUIDATION; RECEIVERSHIP.

    ‘(a) VOLUNTARY LIQUIDATION- The Corporation may voluntarily liquidate only with the consent of, and in accordance with a plan of liquidation approved by, the Farm Credit Administration Board.

    ‘(b) INVOLUNTARY LIQUIDATION-

      ‘(1) IN GENERAL- The Farm Credit Administration Board may appoint a conservator or receiver for the Corporation under the circumstances specified in section 4.12(b).

      ‘(2) APPLICATION- In applying section 4.12(b) to the Corporation under paragraph (1)--

        ‘(A) the Corporation shall also be considered insolvent if the Corporation is unable to pay its debts as they fall due in the ordinary course of business;

        ‘(B) a conservator may also be appointed for the Corporation if the authority of the Corporation to purchase qualified loans or issue or guarantee loan-backed securities is suspended; and

        ‘(C) a receiver may also be appointed for the Corporation if--

          ‘(i)(I) the authority of the Corporation to purchase qualified loans or issue or guarantee loan-backed securities is suspended; or

          ‘(II) the Corporation is classified under section 8.35 as within level III or IV and the alternative actions available under subtitle B are not satisfactory; and

          ‘(ii) the Farm Credit Administration determines that the appointment of a conservator would not be appropriate.

      ‘(3) NO EFFECT ON SUPERVISORY ACTIONS- The grounds for appointment of a conservator for the Corporation under this subsection shall be in addition to those in section 8.37.

    ‘(c) APPOINTMENT OF CONSERVATOR OR RECEIVER-

      ‘(1) QUALIFICATIONS- Notwithstanding section 4.12(b), if a conservator or receiver is appointed for the Corporation, the conservator or receiver shall be--

        ‘(A) the Farm Credit Administration or any other governmental entity or employee, including the Farm Credit System Insurance Corporation; or

        ‘(B) any person that--

          ‘(i) has no claim against, or financial interest in, the Corporation or other basis for a conflict of interest as the conservator or receiver; and

          ‘(ii) has the financial and management expertise necessary to direct the operations and affairs of the Corporation and, if necessary, to liquidate the Corporation.

      ‘(2) COMPENSATION-

        ‘(A) IN GENERAL- A conservator or receiver for the Corporation and professional personnel (other than a Federal employee) employed to represent or assist the conservator or receiver may be compensated for activities conducted as, or for, a conservator or receiver.

        ‘(B) LIMIT ON COMPENSATION- Compensation may not be provided in amounts greater than the compensation paid to employees of the Federal Government for similar services, except that the Farm Credit Administration may provide for compensation at higher rates that are not in excess of rates prevailing in the private sector if the Farm Credit Administration determines that compensation at higher rates is necessary in order to recruit and retain competent personnel.

        ‘(C) CONTRACTUAL ARRANGEMENTS- The conservator or receiver may contract with any governmental entity, including the Farm Credit System Insurance Corporation, to make personnel, services, and facilities of the entity available to the conservator or receiver on such terms and compensation arrangements as shall be mutually agreed, and each entity may provide the same to the conservator or receiver.

      ‘(3) EXPENSES- A valid claim for expenses of the conservatorship or receivership (including compensation under paragraph (2)) and a valid claim with respect to a loan made under subsection (f) shall--

        ‘(A) be paid by the conservator or receiver from funds of the Corporation before any other valid claim against the Corporation; and

        ‘(B) may be secured by a lien, on such property of the Corporation as the conservator or receiver may determine, that shall have priority over any other lien.

      ‘(4) LIABILITY- If the conservator or receiver for the Corporation is not a Federal entity, or an officer or employee of the Federal Government, the conservator or receiver shall not be personally liable for damages in tort or otherwise for an act or omission performed pursuant to and in the course of the conservatorship or receivership, unless the act or omission constitutes gross negligence or any form of intentional tortious conduct or criminal conduct.

      ‘(5) INDEMNIFICATION- The Farm Credit Administration may allow indemnification of the conservator or receiver from the assets of the conservatorship or receivership on such terms as the Farm Credit Administration considers appropriate.

    ‘(d) JUDICIAL REVIEW OF APPOINTMENT-

      ‘(1) IN GENERAL- Notwithstanding subsection (i)(1), not later than 30 days after a conservator or receiver is appointed under subsection (b), the Corporation may bring an action in the United States District Court for the District of Columbia for an order requiring the Farm Credit Administration Board to remove the conservator or receiver. The court shall, on the merits, dismiss the action or direct the Farm Credit Administration Board to remove the conservator or receiver.

      ‘(2) STAY OF OTHER ACTIONS- On the commencement of an action under paragraph (1), any court having jurisdiction of any other action or enforcement proceeding authorized under this Act to which the Corporation is a party shall stay the action or proceeding during the pendency of the action for removal of the conservator or receiver.

    ‘(e) GENERAL POWERS OF CONSERVATOR OR RECEIVER- The conservator or receiver for the Corporation shall have such powers to conduct the conservatorship or receivership as shall be provided pursuant to regulations adopted by the Farm Credit Administration Board. Such powers shall be comparable to the powers available to a conservator or receiver appointed pursuant to section 4.12(b).

    ‘(f) BORROWINGS FOR WORKING CAPITAL-

      ‘(1) IN GENERAL- If the conservator or receiver of the Corporation determines that it is likely that there will be insufficient funds to pay the ongoing administrative expenses of the conservatorship or receivership or that there will be insufficient liquidity to fund maturing obligations of the conservatorship or receivership, the conservator or receiver may borrow funds in such amounts, from such sources, and at such rates of interest as the conservator or receiver considers necessary or appropriate to meet the administrative expenses or liquidity needs of the conservatorship or receivership.

      ‘(2) WORKING CAPITAL FROM FARM CREDIT BANKS- A Farm Credit bank may loan funds to the conservator or receiver for a loan authorized under paragraph (1) or, in the event of receivership, a Farm Credit bank may purchase assets of the Corporation.

    ‘(g) AGREEMENTS AGAINST INTERESTS OF CONSERVATOR OR RECEIVER- No agreement that tends to diminish or defeat the right, title, or interest of the conservator or receiver for the Corporation in any asset acquired by the conservator or receiver as conservator or receiver for the Corporation shall be valid against the conservator or receiver unless the agreement--

      ‘(1) is in writing;

      ‘(2) is executed by the Corporation and any person claiming an adverse interest under the agreement, including the obligor, contemporaneously with the acquisition of the asset by the Corporation;

      ‘(3) is approved by the Board or an appropriate committee of the Board, which approval shall be reflected in the minutes of the Board or committee; and

      ‘(4) has been, continuously, from the time of the agreement’s execution, an official record of the Corporation.

    ‘(h) REPORT TO THE CONGRESS- On a determination by the receiver for the Corporation that there are insufficient assets of the receivership to pay all valid claims against the receivership, the receiver shall submit to the Secretary of the Treasury, the Committee on Agriculture of the House of Representatives, and the Committee on Agriculture, Nutrition, and Forestry of the Senate a report on the financial condition of the receivership.

    ‘(i) TERMINATION OF AUTHORITIES-

      ‘(1) CORPORATION- The charter of the Corporation shall be canceled, and the authority provided to the Corporation by this title shall terminate, on such date as the Farm Credit Administration Board determines is appropriate following the placement of the Corporation in receivership, but not later than the conclusion of the receivership and discharge of the receiver.

      ‘(2) OVERSIGHT- The Office of Secondary Market Oversight established under section 8.11 shall be abolished, and section 8.11(a) and subtitle B shall have no force or effect, on such date as the Farm Credit Administration Board determines is appropriate following the placement of the Corporation in receivership, but not later than the conclusion of the receivership and discharge of the receiver.’.

CHAPTER 2--REGULATORY RELIEF

SEC. 681. COMPENSATION OF ASSOCIATION PERSONNEL.

    Section 1.5(13) of the Farm Credit Act of 1971 (12 U.S.C. 2013(13)) is amended by striking ‘, and the appointment and compensation of the chief executive officer thereof,’.

SEC. 682. USE OF PRIVATE MORTGAGE INSURANCE.

    (a) IN GENERAL- Section 1.10(a)(1) of the Farm Credit Act of 1971 (12 U.S.C. 2018(a)(1)) is amended by adding at the end the following:

        ‘(D) PRIVATE MORTGAGE INSURANCE- A loan on which private mortgage insurance is obtained may exceed 85 percent of the appraised value of the real estate security to the extent that the loan amount in excess of such 85 percent is covered by the insurance.’.

    (b) CONFORMING AMENDMENT- Section 1.10(a)(1)(A) of the Farm Credit Act of 1971 (12 U.S.C. 2018(a)(1)(A)) is amended by striking ‘paragraphs (2) and (3)’ and inserting ‘subparagraphs (C) and (D)’.

SEC. 683. REMOVAL OF CERTAIN BORROWER REPORTING REQUIREMENT.

    Section 1.10(a) of the Farm Credit Act of 1971 (12 U.S.C. 2018(a)) is amended by striking paragraph (5).

SEC. 684. REFORM OF REGULATORY LIMITATIONS ON DIVIDEND, MEMBER BUSINESS, AND VOTING PRACTICES OF ELIGIBLE FARMER-OWNED COOPERATIVES.

    (a) IN GENERAL- Section 3.8(a) of the Farm Credit Act of 1971 (12 U.S.C. 2129(a)) is amended by adding at the end the following: ‘Any such association that has received a loan from a bank for cooperatives shall, without regard to the requirements of paragraphs (1) through (4), continue to be eligible for so long as more than 50 percent (or such higher percentage as is established by the bank board) of the voting control of the association is held by farmers, producers or harvesters of aquatic products, or eligible cooperative associations.’.

    (b) CONFORMING AMENDMENT- Section 3.8(b)(1)(D) of the Farm Credit Act of 1971 (12 U.S.C. 2129(b)(1)(D)) is amended by striking ‘and (4) of subsection (a)’ and inserting ‘and (4), or under the last sentence, of subsection (a)’.

SEC. 685. REMOVAL OF FEDERAL GOVERNMENT CERTIFICATION REQUIREMENT FOR CERTAIN PRIVATE SECTOR FINANCINGS.

    Section 3.8(b)(1)(A) of the Farm Credit Act of 1971 (12 U.S.C. 2129(b)(1)(A)) is amended--

      (1) by striking ‘have been certified by the Administrator of the Rural Electrification Administration to be eligible for such’ and inserting ‘are eligible under the Rural Electrification Act of 1936 (7 U.S.C. 901 et seq.) for’; and

      (2) by striking ‘loan guarantee, and’ and inserting ‘loan guarantee from the Administration or the Bank (or a successor of the Administration or the Bank), and’.

SEC. 686. BORROWER STOCK.

    Section 4.3A of the Farm Credit Act of 1971 (12 U.S.C. 2154a) is amended--

      (1) by redesignating subsections (f) and (g) as subsections (g) and (h), respectively; and

      (2) by inserting after subsection (e) the following:

    ‘(f) LOANS DESIGNATED FOR SALE OR SOLD INTO THE SECONDARY MARKET-

      ‘(1) IN GENERAL- Subject to paragraph (2) and notwithstanding any other provision of this section, the bylaws adopted by a bank or association under subsection (b) may provide--

        ‘(A) in the case of a loan made on or after the date of enactment of this paragraph that is designated, at the time the loan is made, for sale into a secondary market, that no voting stock or participation certificate purchase requirement shall apply to the borrower for the loan; and

        ‘(B) in the case of a loan made before the date of enactment of this paragraph that is sold into a secondary market, that all outstanding voting stock or participation certificates held by the borrower with respect to the loan shall, subject to subsection (d)(1), be retired.

      ‘(2) APPLICABILITY- Notwithstanding any other provision of this section, in the case of a loan sold to a secondary market under title VIII, paragraph (1) shall apply regardless of whether the bank or association retains a subordinated participation interest in a loan or pool of loans or contributes to a cash reserve.

      ‘(3) EXCEPTION-

        ‘(A) IN GENERAL- Subject to subparagraph (B) and notwithstanding any other provision of this section, if a loan designated for sale under paragraph (1)(A) is not sold into a secondary market during the 180-day period that begins on the date of the designation, the voting stock or participation certificate purchase requirement that would otherwise apply to the loan in the absence of a bylaw provision described in paragraph (1)(A) shall be effective.

        ‘(B) RETIREMENT- The bylaws adopted by a bank or association under subsection (b) may provide that if a loan described in subparagraph (A) is sold into a secondary market after the end of the 180-day period described in the subparagraph, all outstanding voting stock or participation certificates held by the borrower with respect to the loan shall, subject to subsection (d)(1), be retired.’.

SEC. 687. DISCLOSURE RELATING TO ADJUSTABLE RATE LOANS.

    Section 4.13(a)(4) of the Farm Credit Act of 1971 (12 U.S.C. 2199(a)(4)) is amended by inserting before the semicolon at the end the following: ‘, and notice to the borrower of a change in the interest rate applicable to the loan of the borrower may be made within a reasonable time after the effective date of an increase or decrease in the interest rate’.

SEC. 688. BORROWERS’ RIGHTS.

    (a) DEFINITION OF LOAN- Section 4.14A(a)(5) of the Farm Credit Act of 1971 (12 U.S.C. 2202a(a)(5)) is amended--

      (1) by striking ‘(5) LOAN- The’ and inserting the following:

      ‘(5) LOAN-

        ‘(A) IN GENERAL- Subject to subparagraph (B), the’; and

      (2) by adding at the end the following:

        ‘(B) EXCLUSION FOR LOANS DESIGNATED FOR SALE INTO SECONDARY MARKET-

          ‘(i) IN GENERAL- Except as provided in clause (ii), the term ‘loan’ does not include a loan made on or after the date of enactment of this subparagraph that is designated, at the time the loan is made, for sale into a secondary market.

          ‘(ii) UNSOLD LOANS-

            ‘(I) IN GENERAL- Except as provided in subclause (II), if a loan designated for sale under clause (i) is not sold into a secondary market during the 180-day period that begins on the date of the designation, the provisions of this section and sections 4.14, 4.14B, 4.14C, 4.14D, and 4.36 that would otherwise apply to the loan in the absence of the exclusion described in clause (i) shall become effective with respect to the loan.

            ‘(II) LATER SALE- If a loan described in subclause (I) is sold into a secondary market after the end of the 180-day period described in subclause (I), subclause (I) shall not apply with respect to the loan beginning on the date of the sale.’.

    (b) BORROWERS’ RIGHTS FOR POOLED LOANS- The first sentence of section 8.9(b) of the Farm Credit Act of 1971 (12 U.S.C. 2279aa-9(b)) is amended by inserting ‘(as defined in section 4.14A(a)(5))’ after ‘application for a loan’.

SEC. 689. FORMATION OF ADMINISTRATIVE SERVICE ENTITIES.

    Part E of title IV of the Farm Credit Act of 1971 is amended by inserting after section 4.28 (12 U.S.C. 2214) the following:

‘SEC. 4.28A. DEFINITION OF BANK.

    ‘In this part, the term ‘bank’ includes each association operating under title II.’.

SEC. 690. JOINT MANAGEMENT AGREEMENTS.

    The first sentence of section 5.17(a)(2)(A) of the Farm Credit Act of 1971 (12 U.S.C. 2252(a)(2)(A)) is amended by striking ‘or management agreements’.

SEC. 691. DISSEMINATION OF QUARTERLY REPORTS.

    Section 5.17(a)(8) of the Farm Credit Act of 1971 (12 U.S.C. 2252(a)(8)) is amended by inserting after ‘except that’ the following: ‘the requirements of the Farm Credit Administration governing the dissemination to stockholders of quarterly reports of System institutions may not be more burdensome or costly than the requirements applicable to national banks, and’.

SEC. 692. REGULATORY REVIEW.

    (a) FINDINGS- Congress finds that--

      (1) the Farm Credit Administration, in the role of the Administration as an arms-length safety and soundness regulator, has made considerable progress in reducing the regulatory burden on Farm Credit System institutions;

      (2) the efforts of the Farm Credit Administration described in paragraph (1) have resulted in cost savings for Farm Credit System institutions; and

      (3) the cost savings described in paragraph (2) ultimately benefit the farmers, ranchers, agricultural cooperatives, and rural residents of the United States.

    (b) CONTINUATION OF REGULATORY REVIEW- The Farm Credit Administration shall continue the comprehensive review of regulations governing the Farm Credit System to identify and eliminate, consistent with law, safety, and soundness, all regulations that are unnecessary, unduly burdensome or costly, or not based on law.

SEC. 693. EXAMINATION OF FARM CREDIT SYSTEM INSTITUTIONS.

    The first sentence of section 5.19(a) of the Farm Credit Act of 1971 (12 U.S.C. 2254(a)) is amended by striking ‘each year’ and inserting ‘during each 18-month period’.

SEC. 694. CONSERVATORSHIPS AND RECEIVERSHIPS.

    (a) DEFINITIONS- Section 5.51 of the Farm Credit Act of 1971 (12 U.S.C. 2277a) is amended--

      (1) by striking paragraph (5); and

      (2) by redesignating paragraph (6) as paragraph (5).

    (b) GENERAL CORPORATE POWERS- Section 5.58 of the Farm Credit Act of 1971 (12 U.S.C. 2277a-7) is amended by striking paragraph (9) and inserting the following:

      ‘(9) CONSERVATOR OR RECEIVER- The Corporation may act as a conservator or receiver.’.

SEC. 695. FARM CREDIT INSURANCE FUND OPERATIONS.

    (a) ADJUSTMENT OF PREMIUMS-

      (1) IN GENERAL- Section 5.55(a) of the Farm Credit Act of 1971 (12 U.S.C. 2277a-4(a)) is amended--

        (A) in paragraph (1), by striking ‘Until the aggregate of amounts in the Farm Credit Insurance Fund exceeds the secure base amount, the annual premium due from any insured System bank for any calendar year’ and inserting the following: ‘If at the end of any calendar year the aggregate of amounts in the Farm Credit Insurance Fund does not exceed the secure base amount, subject to paragraph (2), the annual premium due from any insured System bank for the calendar year’;

        (B) by redesignating paragraph (2) as paragraph (3); and

        (C) by inserting after paragraph (1) the following:

      ‘(2) REDUCED PREMIUMS- The Corporation, in the sole discretion of the Corporation, may reduce by a percentage uniformly applied to all insured System banks the annual premium due from each insured System bank during any calendar year, as determined under paragraph (1).’.

      (2) CONFORMING AMENDMENTS-

        (A) Section 5.55(b) of the Farm Credit Act of 1971 (12 U.S.C. 2277a-4(b)) is amended--

          (i) by striking ‘Insurance Fund’ each place it appears and inserting ‘Farm Credit Insurance Fund’;

          (ii) by striking ‘for the following calendar year’; and

          (iii) by striking ‘subsection (a)’ and inserting ‘subsection (a)(1)’.

        (B) Section 5.56(a) of the Farm Credit Act of 1971 (12 U.S.C. 2277a-5(a)) is amended by striking ‘section 5.55(a)(2)’ each place it appears in paragraphs (2) and (3) and inserting ‘section 5.55(a)(3)’.

        (C) Section 1.12(b) (12 U.S.C. 2020(b)) is amended--

          (i) in paragraph (1), by inserting ‘(as defined in section 5.55(a)(3))’ after ‘government-guaranteed loans’; and

          (ii) in paragraph (3), by inserting ‘(as so defined)’ after ‘government-guaranteed loans’ each place such term appears.

    (b) ALLOCATION TO INSURED SYSTEM BANKS AND OTHER SYSTEM INSTITUTIONS OF EXCESS AMOUNTS IN THE FARM CREDIT INSURANCE FUND- Section 5.55 of the Farm Credit Act of 1971 (12 U.S.C. 2277a-4) is amended by adding at the end the following:

    ‘(e) ALLOCATION TO SYSTEM INSTITUTIONS OF EXCESS RESERVES-

      ‘(1) ESTABLISHMENT OF ALLOCATED INSURANCE RESERVES ACCOUNTS- There is hereby established in the Farm Credit Insurance Fund an Allocated Insurance Reserves Account--

        ‘(A) for each insured System bank; and

        ‘(B) subject to paragraph (6)(C), for all holders, in the aggregate, of Financial Assistance Corporation stock.

      ‘(2) TREATMENT- Amounts in any Allocated Insurance Reserves Account shall be considered to be part of the Farm Credit Insurance Fund.

      ‘(3) ANNUAL ALLOCATIONS- If, at the end of any calendar year, the aggregate of the amounts in the Farm Credit Insurance Fund exceeds the average secure base amount for the calendar year (as calculated on an average daily balance basis), the Corporation shall allocate to the Allocated Insurance Reserves Accounts the excess amount less the amount that the Corporation, in its sole discretion, determines to be the sum of the estimated operating expenses and estimated insurance obligations of the Corporation for the immediately succeeding calendar year.

      ‘(4) ALLOCATION FORMULA- From the total amount required to be allocated at the end of a calendar year under paragraph (3)--

        ‘(A) 10 percent of the total amount shall be credited to the Allocated Insurance Reserves Account established under paragraph (1)(B), subject to paragraph (6)(C); and

        ‘(B) there shall be credited to the Allocated Insurance Reserves Account of each insured System bank an amount that bears the same ratio to the total amount (less any amount credited under subparagraph (A)) as the average principal outstanding for the 3-year period ending on the end of the calendar year on loans made by the bank that are in accrual status bears to the average principal outstanding for the 3-year period ending on the end of the calendar year on loans made by all insured System banks that are in accrual status (excluding, in each case, the guaranteed portions of government-guaranteed loans described in subsection (a)(1)(C)).

      ‘(5) USE OF FUNDS IN ALLOCATED INSURANCE RESERVES ACCOUNTS- To the extent that the sum of the operating expenses of the Corporation and the insurance obligations of the Corporation for a calendar year exceeds the sum of operating expenses and insurance obligations determined under paragraph (3) for the calendar year, the Corporation shall cover the expenses and obligations by--

        ‘(A) reducing each Allocated Insurance Reserves Account by the same proportion; and

        ‘(B) expending the amounts obtained under subparagraph (A) before expending other amounts in the Fund.

      ‘(6) OTHER DISPOSITION OF ACCOUNT FUNDS-

        ‘(A) IN GENERAL- As soon as practicable during each calendar year beginning more than 8 years after the date on which the aggregate of the amounts in the Farm Credit Insurance Fund exceeds the secure base amount, but not earlier than January 1, 2005, the Corporation may--

          ‘(i) subject to subparagraphs (D) and (F), pay to each insured System bank, in a manner determined by the Corporation, an amount equal to the lesser of--

            ‘(I) 20 percent of the balance in the insured System bank’s Allocated Insurance Reserves Account as of the preceding December 31; or

            ‘(II) 20 percent of the balance in the bank’s Allocated Insurance Reserves Account on the date of the payment; and

          ‘(ii) subject to subparagraphs (C), (E), and (F), pay to each System bank and association holding Financial Assistance Corporation stock a proportionate share, determined by dividing the number of shares of Financial Assistance Corporation stock held by the institution by the total number of shares of Financial Assistance Corporation stock outstanding, of the lesser of--

            ‘(I) 20 percent of the balance in the Allocated Insurance Reserves Account established under paragraph (1)(B) as of the preceding December 31; or

            ‘(II) 20 percent of the balance in the Allocated Insurance Reserves Account established under paragraph (1)(B) on the date of the payment.

        ‘(B) AUTHORITY TO ELIMINATE OR REDUCE PAYMENTS- The Corporation may eliminate or reduce payments during a calendar year under subparagraph (A) if the Corporation determines, in its sole discretion, that the payments, or other circumstances that might require use of the Farm Credit Insurance Fund, could cause the amount in the Farm Credit Insurance Fund during the calendar year to be less than the secure base amount.

        ‘(C) REIMBURSEMENT FOR FINANCIAL ASSISTANCE CORPORATION STOCK-

          ‘(i) SUFFICIENT FUNDING- Notwithstanding paragraph (4)(A), on provision by the Corporation for the accumulation in the Account established under paragraph (1)(B) of funds in an amount equal to $56,000,000 (in addition to the amounts described in subparagraph (F)(ii)), the Corporation shall not allocate any further funds to the Account except to replenish the Account if funds are diminished below $56,000,000 by the Corporation under paragraph (5).

          ‘(ii) WIND DOWN AND TERMINATION-

            ‘(I) FINAL DISBURSEMENTS- On disbursement of $53,000,000 (in addition to the amounts described in subparagraph (F)(ii)) from the Allocated Insurance Reserves Account, the Corporation shall disburse the remaining amounts in the Account, as determined under subparagraph (A)(ii), without regard to the percentage limitations in subclauses (I) and (II) of subparagraph (A)(ii).

            ‘(II) TERMINATION OF ACCOUNT- On disbursement of $56,000,000 (in addition to the amounts described in subparagraph (F)(ii)) from the Allocated Insurance Reserves Account, the Corporation shall close the Account established under paragraph (1)(B) and transfer any remaining funds in the Account to the remaining Allocated Insurance Reserves Accounts in accordance with paragraph (4)(B) for the calendar year in which the transfer occurs.

        ‘(D) DISTRIBUTION OF PAYMENTS RECEIVED- Not later than 60 days after receipt of a payment made under subparagraph (A)(i), each insured System bank, in consultation with affiliated associations of the insured System bank, and taking into account the direct or indirect payment of insurance premiums by the associations, shall develop and implement an equitable plan to distribute payments received under subparagraph (A)(i) among the bank and associations of the bank.

        ‘(E) EXCEPTION FOR PREVIOUSLY REIMBURSED ASSOCIATIONS- For purposes of subparagraph (A)(ii), in any Farm Credit district in which the funding bank has reimbursed 1 or more affiliated associations of the bank for the previously unreimbursed portion of the Financial Assistance Corporation stock held by the associations, the funding bank shall be deemed to be the holder of the shares of Financial Assistance Corporation stock for which the funding bank has provided the reimbursement.

        ‘(F) INITIAL PAYMENT- Notwithstanding subparagraph (A), the initial payment made to each payee under subparagraph (A) shall be in such amount determined by the Corporation to be equal to the sum of--

          ‘(i) the total of the amounts that would have been paid if payments under subparagraph (A) had been authorized to begin, under the same terms and conditions, in the first calendar year beginning more than 5 years after the date on which the aggregate of the amounts in the Farm Credit Insurance Fund exceeds the secure base amount, and to continue through the 2 immediately subsequent years;

          ‘(ii) interest earned on any amounts that would have been paid as described in clause (i) from the date on which the payments would have been paid as described in clause (i); and

          ‘(iii) the payment to be made in the initial year described in subparagraph (A), based on the amount in each Account after subtracting the amounts to be paid under clauses (i) and (ii).’

    (c) TECHNICAL AMENDMENTS- Section 5.55(d) of the Farm Credit Act of 1971 (12 U.S.C. 2277a-4(d)) is amended--

      (1) in the matter preceding paragraph (1)--

        (A) by striking ‘subsections (a) and (c)’ and inserting ‘subsections (a), (c), and (e)’; and

        (B) by striking ‘a Farm Credit Bank’ and inserting ‘an insured System bank’; and

      (2) in paragraphs (1), (2), and (3), by striking ‘Farm Credit Bank’ each place it appears and inserting ‘insured System bank’.

SEC. 696. EXAMINATIONS BY THE FARM CREDIT SYSTEM INSURANCE CORPORATION.

    Section 5.59(b)(1)(A) of the Farm Credit Act of 1971 (12 U.S.C. 2277a-8(b)(1)(A)) is amended by adding at the end the following: ‘Notwithstanding any other provision of this Act, on cancellation of the charter of a System institution, the Corporation shall have authority to examine the system institution in receivership. An examination shall be performed at such intervals as the Corporation shall determine.’.

SEC. 697. POWERS WITH RESPECT TO TROUBLED INSURED SYSTEM BANKS.

    (a) LEAST-COST RESOLUTION- Section 5.61(a)(3) of the Farm Credit Act of 1971 (12 U.S.C. 2277a-10(a)) is amended--

      (1) by redesignating subparagraph (B) as subparagraph (F); and

      (2) by striking subparagraph (A) and inserting the following:

        ‘(A) LEAST-COST RESOLUTION- Assistance may not be provided to an insured System bank under this subsection unless the means of providing the assistance is the least costly means of providing the assistance by the Farm Credit Insurance Fund of all possible alternatives available to the Corporation, including liquidation of the bank (including paying the insured obligations issued on behalf of the bank). Before making a least-cost determination under this subparagraph, the Corporation shall accord such other insured System banks as the Corporation determines to be appropriate the opportunity to submit information relating to the determination.

        ‘(B) DETERMINING LEAST COSTLY APPROACH- In determining the least costly alternative under subparagraph (A), the Corporation shall--

          ‘(i) evaluate alternatives on a present-value basis, using a reasonable discount rate;

          ‘(ii) document the evaluation and the assumptions on which the evaluation is based; and

          ‘(iii) retain the documentation for not less than 5 years.

        ‘(C) TIME OF DETERMINATION-

          ‘(i) GENERAL RULE- For purposes of this subsection, the determination of the costs of providing any assistance under any provision of this section with respect to any insured System bank shall be made as of the date on which the Corporation makes the determination to provide the assistance to the institution under this section.

          ‘(ii) RULE FOR LIQUIDATIONS- For purposes of this subsection, the determination of the costs of liquidation of any insured System bank shall be made as of the earliest of--

            ‘(I) the date on which a conservator is appointed for the insured System bank;

            ‘(II) the date on which a receiver is appointed for the insured System bank; or

            ‘(III) the date on which the Corporation makes any determination to provide any assistance under this section with respect to the insured System bank.

        ‘(D) RULE FOR STAND-ALONE ASSISTANCE- Before providing any assistance under paragraph (1), the Corporation shall evaluate the adequacy of managerial resources of the insured System bank. The continued service of any director or senior ranking officer who serves in a policymaking role for the assisted insured System bank, as determined by the Corporation, shall be subject to approval by the Corporation as a condition of assistance.

        ‘(E) DISCRETIONARY DETERMINATIONS- Any determination that the Corporation makes under this paragraph shall be in the sole discretion of the Corporation.’.

    (b) CONFORMING AMENDMENTS- Section 5.61(a) of the Farm Credit Act of 1971 (12 U.S.C. 2277a-10(a)) is amended--

      (1) in paragraph (1) by striking ‘IN GENERAL- ’ and inserting ‘STAND-ALONE ASSISTANCE- ’; and

      (2) in paragraph (2)--

        (A) by striking ‘ENUMERATED POWERS- ’ and inserting ‘FACILITATION OF MERGERS OR CONSOLIDATION- ’; and

        (B) in subparagraph (A) by striking ‘FACILITATION OF MERGERS OR CONSOLIDATION- ’ and inserting ‘IN GENERAL- ’.

SEC. 698. OVERSIGHT AND REGULATORY ACTIONS BY THE FARM CREDIT SYSTEM INSURANCE CORPORATION.

    The Farm Credit Act of 1971 is amended by inserting after section 5.61 (12 U.S.C. 2279a-10) the following:

‘SEC. 5.61A. OVERSIGHT ACTIONS BY THE CORPORATION.

    ‘(a) DEFINITIONS- In this section, the term ‘institution’ means--

      ‘(1) an insured System bank; and

      ‘(2) a production credit association or other association making loans under section 7.6 with a direct loan payable to the funding bank of the association that comprises 20 percent or more of the funding bank’s total loan volume net of nonaccrual loans.

    ‘(b) CONSULTATION REGARDING PARTICIPATION OF UNDERCAPITALIZED BANKS IN ISSUANCE OF INSURED OBLIGATIONS- The Farm Credit Administration shall consult with the Corporation prior to approving an insured obligation that is to be issued by or on behalf of, or participated in by, any insured System bank that fails to meet the minimum level for any capital requirement established by the Farm Credit Administration for the bank.

    ‘(c) CONSULTATION REGARDING APPLICATIONS FOR MERGERS AND RESTRUCTURINGS-

      ‘(1) CORPORATION TO RECEIVE COPY OF TRANSACTION APPLICATIONS- On receiving an application for a merger or restructuring of an institution, the Farm Credit Administration shall forward a copy of the application to the Corporation.

      ‘(2) CONSULTATION REQUIRED- If the proposed merger or restructuring involves an institution that fails to meet the minimum level for any capital requirement established by the Farm Credit Administration applicable to the institution, the Farm Credit Administration shall allow 30 days within which the Corporation may submit the views and recommendations of the Corporation, including any conditions for approval. In determining whether to approve or disapprove any proposed merger or restructuring, the Farm Credit Administration shall give due consideration to the views and recommendations of the Corporation.

‘SEC. 5.61B. AUTHORITY TO REGULATE GOLDEN PARACHUTE AND INDEMNIFICATION PAYMENTS.

    ‘(a) DEFINITIONS- In this section:

      ‘(1) GOLDEN PARACHUTE PAYMENT- The term ‘golden parachute payment’--

        ‘(A) means a payment (or any agreement to make a payment) in the nature of compensation for the benefit of any institution-related party under an obligation of any Farm Credit System institution that--

          ‘(i) is contingent on the termination of the party’s relationship with the institution; and

          ‘(ii) is received on or after the date on which--

            ‘(I) the institution is insolvent;

            ‘(II) a conservator or receiver is appointed for the institution;

            ‘(III) the institution has been assigned by the Farm Credit Administration a composite CAMEL rating of 4 or 5 under the Farm Credit Administration Rating System, or an equivalent rating; or

            ‘(IV) the Corporation otherwise determines that the institution is in a troubled condition (as defined in regulations issued by the Corporation); and

        ‘(B) includes a payment that would be a golden parachute payment but for the fact that the payment was made before the date referred to in subparagraph (A)(ii) if the payment was made in contemplation of the occurrence of an event described in any subclause of subparagraph (A); but

        ‘(C) does not include--

          ‘(i) a payment made under a retirement plan that is qualified (or is intended to be qualified) under section 401 of the Internal Revenue Code of 1986 or other nondiscriminatory benefit plan;

          ‘(ii) a payment made under a bona fide supplemental executive retirement plan, deferred compensation plan, or other arrangement that the Corporation determines, by regulation or order, to be permissible; or

          ‘(iii) a payment made by reason of the death or disability of an institution-related party.

      ‘(2) INDEMNIFICATION PAYMENT- The term ‘indemnification payment’ means a payment (or any agreement to make a payment) by any Farm Credit System institution for the benefit of any person who is or was an institution-related party, to pay or reimburse the person for any liability or legal expense with regard to any administrative proceeding or civil action instituted by the Farm Credit Administration that results in a final order under which the person--

        ‘(A) is assessed a civil money penalty; or

        ‘(B) is removed or prohibited from participating in the conduct of the affairs of the institution.

      ‘(3) INSTITUTION-RELATED PARTY- The term ‘institution-related party’ means--

        ‘(A) a director, officer, employee, or agent for a Farm Credit System institution or any conservator or receiver of such an institution;

        ‘(B) a stockholder (other than another Farm Credit System institution), consultant, joint venture partner, or any other person determined by the Farm Credit Administration to be a participant in the conduct of the affairs of a Farm Credit System institution; and

        ‘(C) an independent contractor (including any attorney, appraiser, or accountant) that knowingly or recklessly participates in any violation of any law or regulation, any breach of fiduciary duty, or any unsafe or unsound practice that caused or is likely to cause more than a minimal financial loss to, or a significant adverse effect on, the Farm Credit System institution.

      ‘(4) LIABILITY OR LEGAL EXPENSE- The term ‘liability or legal expense’ means--

        ‘(A) a legal or other professional expense incurred in connection with any claim, proceeding, or action;

        ‘(B) the amount of, and any cost incurred in connection with, any settlement of any claim, proceeding, or action; and

        ‘(C) the amount of, and any cost incurred in connection with, any judgment or penalty imposed with respect to any claim, proceeding, or action.

      ‘(5) PAYMENT- The term ‘payment’ means--

        ‘(A) a direct or indirect transfer of any funds or any asset; and

        ‘(B) any segregation of any funds or assets for the purpose of making, or under an agreement to make, any payment after the date on which the funds or assets are segregated, without regard to whether the obligation to make the payment is contingent on--

          ‘(i) the determination, after that date, of the liability for the payment of the amount; or

          ‘(ii) the liquidation, after that date, of the amount of the payment.

    ‘(b) PROHIBITION- The Corporation may prohibit or limit, by regulation or order, any golden parachute payment or indemnification payment by a Farm Credit System institution (including any conservator or receiver of the Federal Agricultural Mortgage Corporation) in troubled condition (as defined in regulations issued by the Corporation).

    ‘(c) FACTORS TO BE TAKEN INTO ACCOUNT- The Corporation shall prescribe, by regulation, the factors to be considered by the Corporation in taking any action under subsection (b). The factors may include--

      ‘(1) whether there is a reasonable basis to believe that an institution-related party has committed any fraudulent act or omission, breach of trust or fiduciary duty, or insider abuse with regard to the Farm Credit System institution involved that has had a material effect on the financial condition of the institution;

      ‘(2) whether there is a reasonable basis to believe that the institution-related party is substantially responsible for the insolvency of the Farm Credit System institution, the appointment of a conservator or receiver for the institution, or the institution’s troubled condition (as defined in regulations prescribed by the Corporation);

      ‘(3) whether there is a reasonable basis to believe that the institution-related party has materially violated any applicable law or regulation that has had a material effect on the financial condition of the institution;

      ‘(4) whether there is a reasonable basis to believe that the institution-related party has violated or conspired to violate--

        ‘(A) section 215, 657, 1006, 1014, or 1344 of title 18, United States Code; or

        ‘(B) section 1341 or 1343 of title 18, United States Code, affecting a Farm Credit System institution;

      ‘(5) whether the institution-related party was in a position of managerial or fiduciary responsibility; and

      ‘(6) the length of time that the party was related to the Farm Credit System institution and the degree to which--

        ‘(A) the payment reasonably reflects compensation earned over the period of employment; and

        ‘(B) the compensation represents a reasonable payment for services rendered.

    ‘(d) CERTAIN PAYMENTS PROHIBITED- No Farm Credit System institution may prepay the salary or any liability or legal expense of any institution-related party if the payment is made--

      ‘(1) in contemplation of the insolvency of the institution or after the commission of an act of insolvency; and

      ‘(2) with a view to, or with the result of--

        ‘(A) preventing the proper application of the assets of the institution to creditors; or

        ‘(B) preferring 1 creditor over another creditor.

    ‘(e) RULE OF CONSTRUCTION- Nothing in this section--

      ‘(1) prohibits any Farm Credit System institution from purchasing any commercial insurance policy or fidelity bond, so long as the insurance policy or bond does not cover any legal or liability expense of an institution described in subsection (a)(2); or

      ‘(2) limits the powers, functions, or responsibilities of the Farm Credit Administration.’.

SEC. 699. FARM CREDIT SYSTEM INSURANCE CORPORATION BOARD OF DIRECTORS.

    (a) IN GENERAL- Section 5.53 of the Farm Credit Act of 1971 (12 U.S.C. 2277a-2) is amended to read as follows:

‘SEC. 5.53. BOARD OF DIRECTORS.

    ‘(a) ESTABLISHMENT- The Corporation shall be managed by a Board of Directors that shall consist of the members of the Farm Credit Administration Board.

    ‘(b) CHAIRMAN- The Board of Directors shall be chaired by any Board member other than the Chairman of the Farm Credit Administration Board.’.

    (b) CONFORMING AMENDMENTS-

      (1) Section 5314 of title 5, United States Code, is amended by striking ‘Chairperson, Board of Directors of the Farm Credit System Insurance Corporation.’.

      (2) Section 5315 of title 5, United States Code, is amended by striking ‘Members, Board of Directors of the Farm Credit System Insurance Corporation.’.

SEC. 699A. LIABILITY FOR MAKING CRIMINAL REFERRALS.

    (a) IN GENERAL- Any institution of the Farm Credit System, or any director, officer, employee, or agent of a Farm Credit System institution, that discloses to a Government authority information proffered in good faith that may be relevant to a possible violation of any law or regulation shall not be liable to any person under any law of the United States or any State--

      (1) for the disclosure; or

      (2) for any failure to notify the person involved in the possible violation.

    (b) NO PROHIBITION ON DISCLOSURE- Any institution of the Farm Credit System, or any director, officer, employee, or agent of a Farm Credit System institution, may disclose information to a Government authority that may be relevant to a possible violation of any law or regulation.

TITLE VII--RURAL DEVELOPMENT

Subtitle A--Amendments to the Food, Agriculture, Conservation, and Trade Act of 1990

CHAPTER 1--GENERAL PROVISIONS

SEC. 701. RURAL INVESTMENT PARTNERSHIPS.

    (a) IN GENERAL- Section 2310(c)(1) of the Food, Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 2007(c)(1)) is amended by striking ‘1996’ and inserting ‘2002’.

    (b) AUTHORIZATION OF APPROPRIATIONS- The first sentence of section 2313(d) of the Food, Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 2007c) is amended by striking ‘$10,000,000’ and all that follows through ‘1996’ and inserting ‘$4,700,000 for each of fiscal years 1996 through 2002’.

SEC. 702. WATER AND WASTE FACILITY FINANCING.

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

SEC. 703. RURAL WASTEWATER CIRCUIT RIDER PROGRAM.

    Section 2324 of the Food, Agriculture, Conservation, and Trade Act of 1990 (Public Law 101-624; 7 U.S.C. 1926 note) is repealed.

SEC. 704. TELEMEDICINE AND DISTANCE LEARNING SERVICES IN RURAL AREAS.

    Chapter 1 of subtitle D of title XXIII of the Food, Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 950aaa et seq.) is amended to read as follows:

‘CHAPTER 1--TELEMEDICINE AND DISTANCE LEARNING SERVICES IN RURAL AREAS

‘SEC. 2331. PURPOSE.

    ‘The purpose of the financing programs established under this chapter is to encourage and improve telemedicine services and distance learning services in rural areas through the use of telecommunications, computer networks, and related advanced technologies by students, teachers, medical professionals, and rural residents.

‘SEC. 2332. DEFINITIONS.

    ‘In this chapter:

      ‘(1) CONSTRUCT- The term ‘construct’ means to construct, acquire, install, improve, or extend a facility or system.

      ‘(2) COST OF MONEY LOAN- The term ‘cost of money loan’ means a loan made under this chapter bearing interest at a rate equal to the then current cost to the Federal Government of loans of similar maturity.

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

‘SEC. 2333. TELEMEDICINE AND DISTANCE LEARNING SERVICES IN RURAL AREAS.

    ‘(a) SERVICES TO RURAL AREAS- The Secretary is authorized to provide financial assistance for the purpose of financing the construction of facilities and systems to provide telemedicine services and distance learning services to persons and entities in rural areas.

    ‘(b) FINANCIAL ASSISTANCE-

      ‘(1) IN GENERAL- Financial assistance shall consist of grants or cost of money loans, or both.

      ‘(2) FORM- The Secretary shall determine the portion of the financial assistance provided to a recipient that consists of grants and that consists of cost of money loans so as to result in the maximum feasible repayment to the Federal Government of the financial assistance, based on the ability to repay of the recipient and full utilization of funds made available to carry out this chapter.

    ‘(c) RECIPIENTS-

      ‘(1) IN GENERAL- The Secretary may provide financial assistance under this chapter to--

        ‘(A) entities using telemedicine services or distance learning services, or both; and

        ‘(B) entities providing or proposing to provide telemedicine service or distance learning service, or both, to other persons at rates reflecting the benefit of the financial assistance.

      ‘(2) ELECTRIC OR TELECOMMUNICATIONS BORROWERS-

        ‘(A) LOANS TO BORROWERS- Subject to subparagraph (B), the Secretary may provide a cost of money loan under this chapter to a borrower of an electric or telecommunications loan under the Rural Electrification Act of 1936 (7 U.S.C. 901 et seq.). A borrower receiving a cost of money loan under this paragraph shall--

          ‘(i) make the funds provided available to entities that qualify under paragraph (1) for projects satisfying the requirements of this chapter;

          ‘(ii) use the funds provided to acquire, install, improve, or extend a system for the purposes of this chapter; or

          ‘(iii) use the funds provided to install, improve, or extend a facility for the purposes of this chapter.

        ‘(B) LIMITATIONS- A borrower of an electric or telecommunications loan under the Rural Electrification Act of 1936 shall--

          ‘(i) make a system or facility funded under subparagraph (A) available to entities that qualify under paragraph (1); and

          ‘(ii) neither retain from the proceeds of a loan provided under subparagraph (A), nor assess a qualifying entity under paragraph (1), any amount except as may be required to pay the actual costs incurred in administering the loan funds or making the system or facility available.

      ‘(3) ASSISTANCE TO PROVIDE OR IMPROVE SERVICES- Financial assistance may be provided under this chapter for a facility regardless of the location of the facility if the Secretary determines that the assistance is necessary to provide or improve telemedicine services or distance learning services in a rural area.

    ‘(d) PRIORITY- The Secretary shall establish procedures to prioritize financial assistance provided under this chapter considering--

      ‘(1) the need for the assistance in the affected rural area;

      ‘(2) the financial need of the applicant;

      ‘(3) the population sparsity of the affected rural area;

      ‘(4) the local involvement in the project serving the affected rural area;

      ‘(5) geographic diversity among the recipients of financial assistance;

      ‘(6) the utilization of the telecommunications facilities of the existing telecommunications provider;

      ‘(7) the portion of total project financing provided by the applicant from the funds of the applicant;

      ‘(8) the portion of project financing provided by the applicant with funds obtained from non-Federal sources;

      ‘(9) the joint utilization of facilities financed by other financial assistance;

      ‘(10) the coordination of the proposed project with regional projects or networks;

      ‘(11) service to the widest practical number of persons within the general geographic area covered by the financial assistance;

      ‘(12) conformity with the State strategic plan as prepared under section 381D of the Consolidated Farm and Rural Development Act; and

      ‘(13) other factors determined appropriate by the Secretary.

    ‘(e) MAXIMUM AMOUNT OF ASSISTANCE TO INDIVIDUAL RECIPIENTS- The Secretary may establish the maximum amount of financial assistance to be made available to an individual recipient for each fiscal year under this chapter by publishing notice in the Federal Register. The notice shall be published not more than 45 days after funds are made available to carry out this chapter during a fiscal year.

    ‘(f) USE OF FUNDS- Financial assistance provided under this chapter shall be used for--

      ‘(1) the development and acquisition of instructional programming;

      ‘(2) the development and acquisition, through lease or purchase, of computer hardware and software, audio and visual equipment, computer network components, telecommunications terminal equipment, telecommunications transmission facilities, data terminal equipment, or interactive video equipment, and other facilities that would further telemedicine services or distance learning services, or both;

      ‘(3) providing technical assistance and instruction for the development or use of the programming, equipment, or facilities referred to in paragraphs (1) and (2); or

      ‘(4) other uses that are consistent with this chapter, as determined by the Secretary.

    ‘(g) SALARIES AND EXPENSES- Notwithstanding subsection (f), financial assistance provided under this chapter shall not be used for paying salaries of employees or administrative expenses.

    ‘(h) EXPEDITING COORDINATED TELEPHONE LOANS-

      ‘(1) IN GENERAL- The Secretary may establish and carry out procedures to ensure that expedited consideration and determination is given to applications for loans and advances of funds submitted by local exchange carriers under this chapter and the Rural Electrification Act of 1936 (7 U.S.C. 901 et seq.) to enable the exchange carriers to provide advanced telecommunications services in rural areas in conjunction with any other projects carried out under this chapter.

      ‘(2) DEADLINE IMPOSED ON SECRETARY- Not later than 45 days after the receipt of a completed application for an expedited telephone loan under paragraph (1), the Secretary shall respond to the application. The Secretary shall notify the applicant in writing of the decision of the Secretary regarding each expedited loan application.

    ‘(i) NOTIFICATION OF LOCAL EXCHANGE CARRIER-

      ‘(1) APPLICANTS- Each applicant for a grant for a telemedicine or distance learning project established under this chapter shall notify the appropriate local telephone exchange carrier regarding the application filed with the Secretary for the grant.

      ‘(2) SECRETARY- The Secretary shall--

        ‘(A) publish notice of applications received for grants under this chapter for telemedicine or distance learning projects; and

        ‘(B) make the applications available for inspection.

‘SEC. 2334. ADMINISTRATION.

    ‘(a) NONDUPLICATION- The Secretary shall ensure that facilities constructed using financial assistance provided under this chapter do not duplicate adequate established telemedicine services or distance learning services.

    ‘(b) LOAN MATURITY- The maturities of cost of money loans shall be determined by the Secretary, based on the useful life of the facility being financed, except that the loan shall not be for a period of more than 10 years.

    ‘(c) LOAN SECURITY AND FEASIBILITY- The Secretary shall make a cost of money loan only after determining that the security for the loan is reasonably adequate and that the loan will be repaid within the period of the loan.

    ‘(d) ENCOURAGING CONSORTIA- The Secretary shall encourage the development of consortia to provide telemedicine services or distance learning services, or both, through telecommunications in rural areas served by a telecommunications provider.

    ‘(e) COOPERATION WITH OTHER AGENCIES- The Secretary shall cooperate, to the extent practicable, with other Federal and State agencies with similar grant or loan programs to pool resources for funding meritorious proposals in rural areas.

    ‘(f) INFORMATIONAL EFFORTS- The Secretary shall establish and implement procedures to carry out informational efforts to advise potential end users located in rural areas of each State about the program authorized by this chapter.

‘SEC. 2335. REGULATIONS.

    ‘Not later than 180 days after the effective date of the Agricultural Reform and Improvement Act of 1996, the Secretary shall issue regulations to carry out this chapter.

‘SEC. 2335A. AUTHORIZATION OF APPROPRIATIONS.

    ‘There are authorized to be appropriated to carry out this chapter $100,000,000 for each of fiscal years 1996 through 2002.’.

SEC. 705. LIMITATION ON AUTHORIZATION OF APPROPRIATIONS FOR RURAL TECHNOLOGY GRANTS.

    Section 2347 of the Food, Agriculture, Conservation, and Trade Act of 1990 (Public Law 101-624; 104 Stat. 4034) is amended--

      (1) by striking ‘(a) IN GENERAL- ’; and

      (2) by striking subsection (b).

SEC. 706. MONITORING THE ECONOMIC PROGRESS OF RURAL AMERICA.

    Section 2382 of the Food, Agriculture, Conservation, and Trade Act of 1990 (Public Law 101-624; 13 U.S.C. 141 note) is repealed.

SEC. 707. ANALYSIS BY OFFICE OF TECHNOLOGY ASSESSMENT.

    Section 2385 of the Food, Agriculture, Conservation, and Trade Act of 1990 (Public Law 101-624; 7 U.S.C. 950aaa-4 note) is repealed.

SEC. 708. RURAL HEALTH INFRASTRUCTURE IMPROVEMENT.

    Section 2391 of the Food, Agriculture, Conservation, and Trade Act of 1990 (Public Law 101-624; 7 U.S.C. 2662 note) is repealed.

SEC. 709. CENSUS OF AGRICULTURE.

    Section 2392 of the Food, Agriculture, Conservation, and Trade Act of 1990 (Public Law 101-624; 104 Stat. 4057) is repealed.

CHAPTER 2--ALTERNATIVE AGRICULTURAL RESEARCH AND COMMERCIALIZATION

SEC. 721. DEFINITIONS.

    Section 1657(c) of the Food, Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 5901(c)) is amended--

      (1) by striking paragraphs (3) and (4);

      (2) by redesignating paragraph (5) as paragraph (3);

      (3) by redesignating paragraphs (6) through (12) as paragraphs (7) through (13), respectively; and

      (4) by inserting after paragraph (3) (as redesignated by paragraph (2)) the following:

      ‘(4) CORPORATE BOARD- The term ‘Corporate Board’ means the Board of Directors of the Corporation described in section 1659.

      ‘(5) CORPORATION- The term ‘Corporation’ means the Alternative Agricultural Research and Commercialization Corporation established under section 1658.

      ‘(6) EXECUTIVE DIRECTOR- The term ‘Executive Director’ means the Executive Director of the Corporation appointed under section 1659(d)(2).’.

SEC. 722. ALTERNATIVE AGRICULTURAL RESEARCH AND COMMERCIALIZATION CORPORATION.

    (a) IN GENERAL- Section 1658 of the Food, Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 5902) is amended to read as follows:

‘SEC. 1658. ALTERNATIVE AGRICULTURAL RESEARCH AND COMMERCIALIZATION CORPORATION.

    ‘(a) ESTABLISHMENT- To carry out this subtitle, there is created a body corporate to be known as the Alternative Agricultural Research and Commercialization Corporation, which shall be an agency of the United States, within the Department of Agriculture, subject to the general supervision and direction of the Secretary, except as specifically provided for in this subtitle.

    ‘(b) PURPOSE- The purpose of the Corporation is to--

      ‘(1) expedite the development and market penetration of industrial, nonfood, nonfeed products from agricultural and forestry materials; and

      ‘(2) assist the private sector in bridging the gap between research results and the commercialization of the research.

    ‘(c) PLACE OF INCORPORATION- The Corporation shall be located in the District of Columbia.

    ‘(d) CENTRAL OFFICE- The Secretary shall provide facilities for the principal office of the Corporation within the Washington, D.C. metropolitan area.

    ‘(e) WHOLLY-OWNED GOVERNMENT CORPORATION- The Corporation shall be considered a wholly-owned government corporation for purposes of chapter 91 of title 31, United States Code.

    ‘(f) GENERAL POWERS- In addition to any other powers granted to the Corporation under this subtitle, the Corporation--

      ‘(1) shall have succession in its corporate name;

      ‘(2) may adopt, alter, and rescind any bylaw and adopt and alter a corporate seal, which shall be judicially noticed;

      ‘(3) may enter into any agreement or contract with a person or private or governmental agency, except that the Corporation shall not provide any financial assistance unless specifically authorized under this subtitle;

      ‘(4) may lease, purchase, accept a gift or donation of, or otherwise acquire, use, own, hold, improve, or otherwise deal in or with, and sell, convey, mortgage, pledge, lease, exchange, or otherwise dispose of, any property, real, personal, or mixed, or any interest in property, as the Corporation considers necessary in the transaction of the business of the Corporation, except that this paragraph shall not provide authority for carrying out a program of real estate investment;

      ‘(5) may sue and be sued in the corporate name of the Corporation, except that--

        ‘(A) no attachment, injunction, garnishment, or similar process shall be issued against the Corporation or property of the Corporation; and

        ‘(B) exclusive original jurisdiction shall reside in the district courts of the United States, but the Corporation may intervene in any court in any suit, action, or proceeding in which the Corporation has an interest;

      ‘(6) may independently retain legal representation;

      ‘(7) may provide for and designate such committees, and the functions of the committees, as the Corporate Board considers necessary or desirable,

      ‘(8) may indemnify the Executive Director and other officers of the Corporation, as the Corporate Board considers necessary and desirable, except that the Executive Director and officers shall not be indemnified for an act outside the scope of employment;

      ‘(9) may, with the consent of any board, commission, independent establishment, or executive department of the Federal Government, including any field service, use information, services, facilities, officials, and employees in carrying out this subtitle, and pay for the use, which payments shall be credited to the applicable appropriation that incurred the expense;

      ‘(10) may obtain the services and fix the compensation of any consultant and otherwise procure temporary and intermittent services under section 3109(b) of title 5, United States Code;

      ‘(11) may use the United States mails on the same terms and conditions as the Executive agencies of the Federal Government;

      ‘(12) shall have the rights, privileges, and immunities of the United States with respect to the right to priority of payment with respect to debts due from bankrupt, insolvent, or deceased creditors;

      ‘(13) may collect or compromise any obligations assigned to or held by the Corporation, including any legal or equitable rights accruing to the Corporation;

      ‘(14) shall determine the character of, and necessity for, obligations and expenditures of the Corporation and the manner in which the obligations and expenditures shall be incurred, allowed, and paid, subject to provisions of law specifically applicable to Government corporations;

      ‘(15) may make final and conclusive settlement and adjustment of any claim by or against the Corporation or a fiscal officer of the Corporation;

      ‘(16) may sell assets, loans, and equity interests acquired in connection with the financing of projects funded by the Corporation; and

      ‘(17) may exercise all other lawful powers necessarily or reasonably related to the establishment of the Corporation to carry out this subtitle and the powers, purposes, functions, duties, and authorized activities of the Corporation.

    ‘(g) SPECIFIC POWERS- To carry out this subtitle, the Corporation shall have the authority to--

      ‘(1) make grants to, and enter into cooperative agreements and contracts with, eligible applicants for research, development, and demonstration projects in accordance with section 1660;

      ‘(2) make loans and interest subsidy payments and invest venture capital in accordance with section 1661;

      ‘(3) collect and disseminate information concerning State, regional, and local commercialization projects;

      ‘(4) search for new nonfood, nonfeed products that may be produced from agricultural commodities and for processes to produce the products;

      ‘(5) administer, maintain, and dispense funds from the Alternative Agricultural Research and Commercialization Revolving Fund to facilitate the conduct of activities under this subtitle; and

      ‘(6) engage in other activities incident to carrying out the functions of the Corporation.’.

    (b) WHOLLY OWNED GOVERNMENT CORPORATION- Section 9101(3) of title 31, United States Code, is amended--

      (1) by redesignating subparagraph (N) (relating to the Uranium Enrichment Corporation) as subparagraph (O); and

      (2) by adding at the end the following:

        ‘(P) the Alternative Agricultural Research and Commercialization Corporation.’.

    (c) CONFORMING AMENDMENT- Section 211(b)(5) of the Department of Agriculture Reorganization Act of 1994 (7 U.S.C. 6911(b)(5)) is amended by striking ‘Alternative Agricultural Research and Commercialization Board’ and inserting ‘Corporate Board of the Alternative Agricultural Research and Commercialization Corporation’.

SEC. 723. BOARD OF DIRECTORS, EMPLOYEES, AND FACILITIES.

    (a) IN GENERAL- Section 1659 of the Food, Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 5903) is amended to read as follows:

‘SEC. 1659. BOARD OF DIRECTORS, EMPLOYEES, AND FACILITIES.

    ‘(a) IN GENERAL- The powers of the Corporation shall be vested in a Corporate Board.

    ‘(b) MEMBERS OF THE CORPORATE BOARD- The Corporate Board shall consist of 10 members as follows:

      ‘(1) The Under Secretary of Agriculture for Rural Economic and Community Development.

      ‘(2) The Under Secretary of Agriculture for Research, Education, and Economics.

      ‘(3) 4 members appointed by the Secretary, of whom--

        ‘(A) at least 1 member shall be a representative of the leading scientific disciplines relevant to the activities of the Corporation;

        ‘(B) at least 1 member shall be a producer or processor of agricultural commodities; and

        ‘(C) at least 1 member shall be a person who is privately engaged in the commercialization of new nonfood, nonfeed products from agricultural commodities.

      ‘(4) 2 members appointed by the Secretary who--

        ‘(A) have expertise in areas of applied research relating to the development or commercialization of new nonfood, nonfeed products; and

        ‘(B) shall be appointed from a group of at least 4 individuals nominated by the Director of the National Science Foundation if the nominations are made within 60 days after the date a vacancy occurs.

      ‘(5) 2 members appointed by the Secretary who--

        ‘(A) have expertise in financial and managerial matters; and

        ‘(B) shall be appointed from a group of at least 4 individuals nominated by the Secretary of Commerce if the nominations are made within 60 days after the date a vacancy occurs.

    ‘(c) RESPONSIBILITIES OF THE CORPORATE BOARD-

      ‘(1) IN GENERAL- The Corporate Board shall--

        ‘(A) be responsible for the general supervision of the Corporation and Regional Centers established under section 1663;

        ‘(B) determine (in consultation with Regional Centers) high priority commercialization areas to receive assistance under section 1663;

        ‘(C) review any grant, contract, or cooperative agreement to be made or entered into by the Corporation under section 1660 and any financial assistance to be provided under section 1661;

        ‘(D) make the final decision, by majority vote, on whether and how to provide assistance to an applicant; and

        ‘(E) using the results of the hearings and other information and data collected under paragraph (2), develop and establish a budget plan and a long-term operating plan to carry out this subtitle.

      ‘(2) AUTHORITY OF THE SECRETARY-

        ‘(A) IN GENERAL- The Secretary shall vacate and remand to the Board for reconsideration any decision made pursuant to paragraph (1)(D) if the Secretary determines that there has been a violation of subsection (j), or any conflict of interest provisions of the bylaws of the Board, with respect to the decision.

        ‘(B) REASONS- In the case of any violation and referral of a funding decision to the Board, the Secretary shall inform the Board of the reasons for any remand pursuant to subparagraph (A).

    ‘(d) CHAIRPERSON- The members of the Corporate Board shall select a Chairperson from among the members of the Corporate Board. The term of office of the Chairperson shall be 2 years. The members referred to in paragraphs (1) and (2) of subsection (b) may not serve as Chairperson.

    ‘(e) EXECUTIVE DIRECTOR-

      ‘(1) IN GENERAL- The Executive Director of the Corporation shall be the chief executive officer of the Corporation, with such power and authority as may be conferred by the Corporate Board. The Executive Director shall be appointed by the Corporate Board. The appointment shall be subject to the approval of the Secretary.

      ‘(2) COMPENSATION- The Executive Director shall receive basic pay at the rate provided for level IV of the Executive Schedule under section 5315 of title 5, United States Code.

    ‘(f) OFFICERS- The Corporate Board shall establish the offices and appoint the officers of the Corporation, including a Secretary, and define the duties of the officers in a manner consistent with this subtitle.

    ‘(g) MEETINGS- The Corporate Board shall meet at least 3 times each fiscal year at the call of the Chairperson or at the request of the Executive Director. The location of the meetings shall be subject to approval of the Executive Director. A quorum of the Corporate Board shall consist of a majority of the members. The decisions of the Corporate Board shall be made by majority vote.

    ‘(h) TERM; VACANCIES-

      ‘(1) IN GENERAL- The term of office of a member of the Corporate Board shall be 4 years, except that the members initially appointed shall be appointed to serve staggered terms. A member appointed to fill a vacancy for an unexpired term may be appointed only for the remainder of the term. A vacancy on the Corporate Board shall be filled in the same manner as the original appointment. The Secretary shall not remove a member of the Corporate Board except for cause.

      ‘(2) TRANSITION MEASURE- An individual who is serving on the Alternative Agricultural Research and Commercialization Board on the day before the effective date of the Agricultural Reform and Improvement Act of 1996 may be appointed to the Corporate Board by the Secretary for a term that does not exceed the term of the individual on the Alternative Agricultural Research and Commercialization Board if the Act had not been enacted.

    ‘(i) COMPENSATION- A member of the Corporate Board who is an officer or employee of the United States shall not receive any additional compensation by reason of service on the Corporate Board. Any other member shall receive, for each day (including travel time) the member is engaged in the performance of the functions of the Corporate Board, compensation at a rate not to exceed the daily equivalent of the annual rate in effect for Level IV of the Executive Schedule. A member of the Corporate Board shall be reimbursed for travel, subsistence, and other necessary expenses incurred by the member in the performance of the duties of the member.

    ‘(j) CONFLICT OF INTEREST; FINANCIAL DISCLOSURE-

      ‘(1) CONFLICT OF INTEREST- Except as provided in paragraph (3), no member of the Corporate Board shall vote on any matter respecting any application, contract, claim, or other particular matter pending before the Corporation, in which, to the knowledge of the member, the member, spouse, or child of the member, partner, or organization in which the member is serving as officer, director, trustee, partner, or employee, or any person or organization with whom the member is negotiating or has any arrangement concerning prospective employment, has a financial interest.

      ‘(2) VIOLATIONS- Action by a member of the Corporate Board that is contrary to the prohibition contained in paragraph (1) shall be cause for removal of the member, but shall not impair or otherwise affect the validity of any otherwise lawful action by the Corporation in which the member participated.

      ‘(3) EXCEPTIONS- The prohibitions contained in paragraph (1) shall not apply if a member of the Corporate Board advises the Corporate Board of the nature of the particular matter in which the member proposes to participate, and if the member makes a full disclosure of the financial interest, prior to any participation, and the Corporate Board determines, by majority vote, that the financial interest is too remote or too inconsequential to affect the integrity of the member’s services to the Corporation in that matter. The member involved shall not vote on the determination.

      ‘(4) FINANCIAL DISCLOSURE- A Board member shall be subject to the financial disclosure requirements applicable to a special Government employee (as defined in section 202(a) of title 18, United States Code).

    ‘(k) DELEGATION OF AUTHORITY-

      ‘(1) IN GENERAL- The Corporate Board may, by resolution, delegate to the Chairperson, the Executive Director, or any other officer or employee any function, power, or duty assigned to the Corporation under this subtitle, other than a function, power, or duty expressly vested in the Corporate Board by subsections (c) through (n).

      ‘(2) PROHIBITION ON DELEGATION- Notwithstanding any other law, the Secretary and any other officer or employee of the United States shall not make any delegation to the Corporate Board, the Chairperson, the Executive Director, or the Corporation of any power, function, or authority not expressly authorized by this subtitle, unless the delegation is made pursuant to an authority in law that expressly makes reference to this section.

      ‘(3) REORGANIZATION ACT- Notwithstanding any other law, the President (through authorities provided under chapter 9, title 5, United States Code) may not authorize the transfer to the Corporation of any power, function, or authority in addition to powers, functions, and authorities provided by law.

    ‘(l) BYLAWS- Notwithstanding section 1658(f)(2), the Corporate Board shall adopt, and may from time to time amend, any bylaw that is necessary for the proper management and functioning of the Corporation. The Corporate Board shall not adopt any bylaw that has not been reviewed and approved by the Secretary.

    ‘(m) ORGANIZATION- The Corporate Board shall provide a system of organization to fix responsibility and promote efficiency.

    ‘(n) PERSONNEL AND FACILITIES OF CORPORATION-

      ‘(1) APPOINTMENT AND COMPENSATION OF PERSONNEL- The Corporation may select and appoint officers, attorneys, employees, and agents, who shall be vested with such powers and duties as the Corporation may determine.

      ‘(2) USE OF FACILITIES AND SERVICES OF THE DEPARTMENT OF AGRICULTURE- Notwithstanding any other provision of law, to perform the responsibilities of the Corporation under this subtitle, the Corporation may partially or jointly utilize the facilities of and the services of employees of the Department of Agriculture, without cost to the Corporation.

      ‘(3) GOVERNMENT EMPLOYMENT LAWS- An officer or employee of the Corporation shall be subject to all laws of the United States relating to governmental employment.’.

    (b) CONFORMING AMENDMENT- Section 5315 of title V, United States Code, is amended by adding at the end the following:

      ‘Executive Director of the Alternative Agricultural Research and Commercialization Corporation.’.

SEC. 724. RESEARCH AND DEVELOPMENT GRANTS, CONTRACTS, AND AGREEMENTS.

    Section 1660 of the Food, Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 5904) is amended--

      (1) by striking ‘Center’ each place it appears and inserting ‘Corporation’;

      (2) in subsection (c), by striking ‘Board’ and inserting ‘Corporate Board’; and

      (3) in subsection (f), by striking ‘non-Center’ and inserting ‘non-Corporation’.

SEC. 725. COMMERCIALIZATION ASSISTANCE.

    Section 1661 of the Food, Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 5905) is amended--

      (1) by striking ‘Center’ each place it appears and inserting ‘Corporation’;

      (2) by striking ‘Board’ each place it appears and inserting ‘Corporate Board’;

      (3) by striking subsection (c);

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

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

        (A) in the subsection heading of paragraph (1), by striking ‘DIRECTOR’ and inserting ‘EXECUTIVE DIRECTOR’; and

        (B) by striking ‘Director’ each place it appears and inserting ‘Executive Director’.

SEC. 726. GENERAL RULES REGARDING THE PROVISION OF ASSISTANCE.

    Section 1662 of the Food, Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 5906) is amended--

      (1) by striking ‘Center’ each place it appears (except in subsection (b)) and inserting ‘Corporation’;

      (2) by striking ‘Board’ each place it appears and inserting ‘Corporate Board’; and

      (3) in subsection (b)--

        (A) in the second sentence, by striking ‘Board, a Regional Center, or the Advisory Council’ and inserting ‘Board or a Regional Center’; and

        (B) by striking the third sentence.

SEC. 727. REGIONAL CENTERS.

    Section 1663 of the Food, Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 5907) is amended--

      (1) by striking ‘Board’ each place it appears and inserting ‘Corporate Board’;

      (2) in subsection (e)(8), by striking ‘Center’ and inserting ‘Corporation’; and

      (3) in subsection (f)--

        (A) in paragraph (2), by striking ‘in consultation with the Advisory Council appointed under section 1661(c)’; and

        (B) by striking paragraphs (3) and (4) and inserting the following:

      ‘(3) RECOMMENDATION- The Regional Director, based on the comments of the reviewers, shall make and submit a recommendation to the Board. A recommendation submitted by a Regional Director shall not be binding on the Board.’.

SEC. 728. ALTERNATIVE AGRICULTURAL RESEARCH AND COMMERCIALIZATION REVOLVING FUND.

    Section 1664 of the Food, Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 5908) is amended to read as follows:

‘SEC. 1664. ALTERNATIVE AGRICULTURAL RESEARCH AND COMMERCIALIZATION REVOLVING FUND.

    ‘(a) ESTABLISHMENT- There is established in the Treasury of the United States a revolving fund to be known as the Alternative Agricultural Research and Commercialization Revolving Fund. The Fund shall be available to the Corporation, without fiscal year limitation, to carry out the authorized programs and activities of the Corporation under this subtitle.

    ‘(b) CONTENTS OF FUND- There shall be deposited in the Fund--

      ‘(1) such amounts as may be appropriated or transferred to support programs and activities of the Corporation;

      ‘(2) payments received from any source for products, services, or property furnished in connection with the activities of the Corporation;

      ‘(3) fees and royalties collected by the Corporation from licensing or other arrangements relating to commercialization of products developed through projects funded in whole or part by grants, contracts, or cooperative agreements executed by the Corporation;

      ‘(4) proceeds from the sale of assets, loans, and equity interests made in furtherance of the purposes of the Corporation;

      ‘(5) donations or contributions accepted by the Corporation to support authorized programs and activities; and

      ‘(6) any other funds acquired by the Corporation.

    ‘(c) FUNDING ALLOCATIONS- Funding of projects and activities under this subtitle shall be subject to the following restrictions:

      ‘(1) Of the total amount of funds made available for a fiscal year under this subtitle--

        ‘(A) not more than the lesser of 15 percent or $3,000,000 may be set aside to be used for authorized administrative expenses of the Corporation in carrying out the functions of the Corporation;

        ‘(B) not more than 1 percent may be set aside to be used for generic studies and specific reviews of individual proposals for financial assistance; and

        ‘(C) except as provided in subsection (e), not less than 84 percent shall be set aside to be awarded to qualified applicants who file project applications with, or respond to requests for proposals from, the Corporation under sections 1660 and 1661.

      ‘(2) Any funds remaining uncommitted at the end of a fiscal year shall be credited to the Fund and added to the total program funds available to the Corporation for the next fiscal year.

    ‘(d) AUTHORIZED ADMINISTRATIVE EXPENSES- For the purposes of this section, authorized administrative expenses shall include all ordinary and necessary expenses, including all compensation for personnel and consultants, expenses for computer usage, or space needs of the Corporation and similar expenses. Funds authorized for administrative expenses shall not be available for the acquisition of real property.

    ‘(e) PROJECT MONITORING- The Board may establish, in the bylaws of the Board, a percent of funds provided under subsection (c), not to exceed 1 percent per project award, for any commercialization project to be expended from project awards that shall be used to ensure that project funds are being utilized in accordance with the project agreement.

    ‘(f) TERMINATION OF THE FUND- On expiration of the authority provided by this subtitle, all assets (after payment of all outstanding obligations) of the Fund shall revert to the general fund of the Treasury.

    ‘(g) AUTHORIZATION OF APPROPRIATIONS; CAPITALIZATION-

      ‘(1) AUTHORIZATION OF APPROPRIATION- There are authorized to be appropriated to the Fund $75,000,000 for each of fiscal years 1996 through 2002.

      ‘(2) CAPITALIZATION- The Executive Director may pay as capital of the Corporation, from amounts made available through annual appropriations, $75,000,000 for each of fiscal years 1996 through 2002. On the payment of capital by the Executive Director, the Corporation shall issue an equivalent amount of capital stock to the Secretary of the Treasury.

      ‘(3) TRANSFER- All obligations, assets, and related rights and responsibilities of the Alternative Agricultural Research and Commercialization Center established under section 1658 of the Food, Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 5902) (as in effect on the day before the effective date of the Agricultural Reform and Improvement Act of 1996) are transferred to the Corporation.’.

SEC. 729. PROCUREMENT PREFERENCES FOR PRODUCTS RECEIVING CORPORATION ASSISTANCE.

    Subtitle G of title XVI of the Food, Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 5901 et seq.) is amended by adding at the end the following:

‘SEC. 1665. PROCUREMENT OF ALTERNATIVE AGRICULTURAL RESEARCH AND COMMERCIALIZATION PRODUCTS.

    ‘(a) DEFINITION OF EXECUTIVE AGENCY- In this section, the term ‘executive agency’ has the meaning provided the term in section 4(1) of the Office of Federal Procurement Policy Act (41 U.S.C. 403(1)).

    ‘(b) PROCUREMENT- To further the achievement of the purposes specified in section 1657(b), an executive agency may, for any procurement involving the acquisition of property, establish set-asides and preferences for property that has been commercialized with assistance provided under this subtitle.

    ‘(c) SET-ASIDES- Procurements solely for property may be set-aside exclusively for products developed with commercialization assistance provided under section 1661.

    ‘(d) PREFERENCES- Preferences for property developed with assistance provided under this subtitle in procurements involving the acquisition of property may be--

      ‘(1) a price preference, if the procurement is solely for property, of not greater than a percentage to be determined within the sole discretion of the head of the procuring agency; or

      ‘(2) a technical evaluation preference included as an award factor or subfactor as determined within the sole discretion of the head of the procuring agency.

    ‘(e) NOTICE- Each competitive solicitation or invitation for bids selected by an executive agency for a set-aside or preference under this section shall contain a provision notifying offerors where a list of products eligible for the set aside or preference may be obtained.

    ‘(f) ELIGIBILITY- Offerors shall receive the set aside or preference required under this section if, in the case of products developed with financial assistance under--

      ‘(1) section 1660, less than 10 years have elapsed since the expiration of the grant, cooperative agreement, or contract;

      ‘(2) paragraph (1) or (2) of section 1661(a), less than 5 years have elapsed since the date the loan was made or insured;

      ‘(3) section 1661(a)(3), less than 5 years have elapsed since the date of sale of any remaining government equity interest in the company; or

      ‘(4) section 1661(a)(4), less than 5 years have elapsed since the date of the final payment on the repayable grant.’.

SEC. 730. BUSINESS PLAN AND FEASIBILITY STUDY AND REPORT.

    (a) BUSINESS PLAN- Not later than 180 days after the date of enactment of this Act, the Alternative Agricultural Research and Commercialization Corporation established under section 1658 of the Food, Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 5902) shall--

      (1) develop a 5-year business plan pursuant to section 1659(c)(1)(E) of the Food, Agriculture, Conservation, and Trade Act of 1990 (as amended by section 723); and

      (2) submit the plan to the Secretary of Agriculture, the Committee on Agriculture of the House of Representatives, and the Committee on Agriculture, Nutrition, and Forestry of the Senate.

    (b) FEASIBILITY STUDY AND REPORT-

      (1) STUDY- The Secretary of Agriculture shall conduct a study of and prepare a report on the continued feasibility of the Alternative Agricultural Research and Commercialization Corporation. In conducting the study, the Secretary shall examine options for privatizing the Corporation and converting the Corporation to a Government sponsored enterprise.

      (2) REPORT- Not later than December 31, 2001, the Secretary shall transmit the report to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate.

Subtitle B--Amendments to the Consolidated Farm and Rural Development Act

CHAPTER 1--GENERAL PROVISIONS

SEC. 741. WATER AND WASTE FACILITY LOANS AND GRANTS.

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

      (1) in the first sentence of paragraph (2), by striking ‘$500,000,000’ and inserting ‘$590,000,000’;

      (2) by striking paragraph (7) and inserting the following:

      ‘(7) DEFINITION OF RURAL AND RURAL AREAS- For the purpose of water and waste disposal grants and direct and guaranteed loans provided under paragraphs (1) and (2), the terms ‘rural’ and ‘rural area’ shall mean a city, town, or unincorporated area that has a population of no more than 10,000 inhabitants.’;

      (3) by striking paragraphs (9), (10), and (11) and inserting the following:

      ‘(9) CONFORMITY WITH STATE DRINKING WATER STANDARDS- No Federal funds shall be made available under this section unless the Secretary determines that the water system seeking funding will make significant progress toward meeting the standards established under title XIV of the Public Health Service Act (commonly known as the ‘Safe Drinking Water Act’) (42 U.S.C. 300f et seq.).

      ‘(10) CONFORMITY WITH FEDERAL AND STATE WATER POLLUTION CONTROL STANDARDS- In the case of a water treatment discharge or waste disposal system seeking funding, no Federal funds shall be made available under this section unless the Secretary determines that the effluent from the system conforms with applicable Federal and State water pollution control standards.

      ‘(11) RURAL BUSINESS OPPORTUNITY GRANTS-

        ‘(A) IN GENERAL- The Secretary may make grants, not to exceed $1,500,000 annually, to public bodies, private nonprofit community development corporations or entities, or such other agencies as the Secretary may select to enable the recipients--

          ‘(i) to identify and analyze business opportunities, including opportunities in export markets, that will use local rural economic and human resources;

          ‘(ii) to identify, train, and provide technical assistance to existing or prospective rural entrepreneurs and managers;

          ‘(iii) to establish business support centers and otherwise assist in the creation of new rural businesses, the development of methods of financing local businesses, and the enhancement of the capacity of local individuals and entities to engage in sound economic activities;

          ‘(iv) to conduct regional, community, and local economic development planning and coordination, and leadership development; and

          ‘(v) to establish centers for training, technology, and trade that will provide training to rural businesses in the utilization of interactive communications technologies to develop international trade opportunities and markets.

        ‘(B) CRITERIA- In awarding the grants, the Secretary shall consider, among other criteria to be established by the Secretary--

          ‘(i) the extent to which the applicant provides development services in the rural service area of the applicant; and

          ‘(ii) the capability of the applicant to carry out the purposes of this section.

        ‘(C) COORDINATION- The Secretary shall ensure, to the maximum extent practicable, that assistance provided under this paragraph is coordinated with and delivered in cooperation with similar services or assistance provided to rural residents by the Cooperative State Research, Education, and Extension Service or other Federal agencies.

        ‘(D) AUTHORIZATION OF APPROPRIATIONS- There are authorized to be appropriated to carry out this paragraph $7,500,000 for each of fiscal years 1996 through 2002.’;

      (4) by striking paragraphs (14) and (15); and

      (5) in paragraph (16)--

        (A) by striking ‘(16)(A) The’ and inserting the following:

      ‘(16) RURAL WATER AND WASTEWATER TECHNICAL ASSISTANCE AND TRAINING PROGRAMS-

        ‘(A) IN GENERAL- The’;

        (B) in subparagraph (A)--

          (i) by striking ‘(i) identify’ and inserting the following:

          ‘(i) identify’;

          (ii) by striking ‘(ii) prepare’ and inserting the following:

          ‘(ii) prepare’; and

          (iii) by striking ‘(iii) improve’ and inserting the following:

          ‘(iii) improve’;

        (C) in subparagraph (B), by striking ‘(B) In’ and inserting the following:

        ‘(B) SELECTION PRIORITY- In’; and

        (D) in subparagraph (C)--

          (i) by striking ‘(C) Not’ and inserting the following:

        ‘(C) FUNDING- Not’; and

          (ii) by striking ‘2 per centum of any funds provided in Appropriations Acts’ and inserting ‘3 percent of any funds appropriated’.

    (b) CONFORMING AMENDMENTS-

      (1) Section 307(a)(6)(B) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1927(a)(6)(B)) (as amended by section 651(a)(2)) is further amended--

        (A) by striking clause (ii); and

        (B) by redesignating clauses (iii) and (iv) as clauses (ii) and (iii), respectively.

      (2) The second sentence of section 309A(a) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1929a(a)) is amended by striking ‘, 306(a)(14),’.

SEC. 742. EMERGENCY COMMUNITY WATER ASSISTANCE GRANT PROGRAM FOR SMALL COMMUNITIES.

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

      (1) in subsection (e)--

        (A) by striking paragraph (1) and inserting the following:

      ‘(1) MAXIMUM INCOME- No grant provided under this section may be used to assist any rural area or community that has a median household income in excess of the State nonmetropolitan median household income according to the most recent decennial census of the United States.’; and

        (B) in paragraph (2), by striking ‘5,000’ and inserting ‘3,000’; and

      (2) by striking subsection (i) and inserting the following:

    ‘(i) AUTHORIZATION OF APPROPRIATIONS- There are authorized to be appropriated to carry out this section $35,000,000 for each of fiscal years 1996 through 2002.’.

SEC. 743. EMERGENCY COMMUNITY WATER ASSISTANCE GRANT PROGRAM FOR SMALLEST COMMUNITIES.

    Section 306B of the Consolidated Farm and Rural Development Act (7 U.S.C. 1926b) is repealed.

SEC. 744. AGRICULTURAL CREDIT INSURANCE FUND.

    Section 309(f) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1929(f)) is amended--

      (1) by striking paragraph (1); and

      (2) by redesignating paragraphs (2) through (6) as paragraphs (1) through (5), respectively.

SEC. 745. RURAL DEVELOPMENT INSURANCE FUND.

    Section 309A(g) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1929a(g)) is amended--

      (1) by striking paragraph (1); and

      (2) by redesignating paragraphs (2) through (8) as paragraphs (1) through (7), respectively.

SEC. 746. INSURED WATERSHED AND RESOURCE CONSERVATION AND DEVELOPMENT LOANS.

    Section 310A of the Consolidated Farm and Rural Development Act (7 U.S.C. 1931) is repealed.

SEC. 747. RURAL INDUSTRIALIZATION ASSISTANCE.

    (a) IN GENERAL- Section 310B of the Consolidated Farm and Rural Development Act (7 U.S.C. 1932) is amended--

      (1) in subsection (b), by striking ‘(b)(1)’ and all that follows through ‘(2) The’ and inserting the following:

    ‘(b) SOLID WASTE MANAGEMENT GRANTS- The’;

      (2) in subsection (c)--

        (A) by striking ‘(c)(1) The’ and inserting the following:

    ‘(c) RURAL BUSINESS ENTERPRISE GRANTS-

      ‘(1) IN GENERAL- The’;

        (B) in paragraph (1), by inserting ‘(including nonprofit entities)’ after ‘private business enterprises’; and

        (C) in paragraph (2)--

          (i) by striking ‘(2) The’ and inserting the following:

      ‘(2) PASSENGER TRANSPORTATION SERVICES OR FACILITIES- The’; and

          (ii) by striking ‘make grants’ and inserting ‘award grants on a competitive basis’; and

      (3) by striking subsections (e), (g), (h), and (i);

      (4) by redesignating subsections (f) and (j) as subsections (e) and (f), respectively;

      (5) by striking subsection (e) (as so redesignated) and inserting the following:

    ‘(e) RURAL COOPERATIVE DEVELOPMENT GRANTS-

      ‘(1) DEFINITIONS- In this subsection:

        ‘(A) NONPROFIT INSTITUTION- The term ‘nonprofit institution’ means any organization or institution, including an accredited institution of higher education, no part of the net earnings of which inures, or may lawfully inure, to the benefit of any private shareholder or individual.

        ‘(B) UNITED STATES- The term ‘United States’ means the several States, the District of Columbia, the Commonwealth of Puerto Rico, the Virgin Islands, Guam, American Samoa, and the other territories and possessions of the United States.

      ‘(2) GRANTS- The Secretary shall make grants under this subsection to nonprofit institutions for the purpose of enabling the institutions to establish and operate centers for rural cooperative development.

      ‘(3) GOALS- The goals of a center funded under this subsection shall be to facilitate the creation of jobs in rural areas through the development of new rural cooperatives, value added processing, and rural businesses.

      ‘(4) APPLICATION- Any nonprofit institution seeking a grant under paragraph (2) shall submit to the Secretary an application containing a plan for the establishment and operation by the institution of a center or centers for cooperative development. The Secretary may approve the application if the plan contains the following:

        ‘(A) A provision that substantiates that the center will effectively serve rural areas in the United States.

        ‘(B) A provision that the primary objective of the center will be to improve the economic condition of rural areas through cooperative development.

        ‘(C) A description of the activities that the center will carry out to accomplish the objective. The activities may include the following:

          ‘(i) Programs for applied research and feasibility studies that may be useful to individuals, cooperatives, small businesses, and other similar entities in rural areas served by the center.

          ‘(ii) Programs for the collection, interpretation, and dissemination of information that may be useful to individuals, cooperatives, small businesses, and other similar entities in rural areas served by the center.

          ‘(iii) Programs providing training and instruction for individuals, cooperatives, small businesses, and other similar entities in rural areas served by the center.

          ‘(iv) Programs providing loans and grants to individuals, cooperatives, small businesses, and other similar entities in rural areas served by the center.

          ‘(v) Programs providing technical assistance, research services, and advisory services to individuals, cooperatives, small businesses, and other similar entities in rural areas served by the center.

          ‘(vi) Programs providing for the coordination of services and sharing of information among the center.

        ‘(D) A description of the contributions that the activities are likely to make to the improvement of the economic conditions of the rural areas for which the center will provide services.

        ‘(E) Provisions that the center, in carrying out the activities, will seek, where appropriate, the advice, participation, expertise, and assistance of representatives of business, industry, educational institutions, the Federal Government, and State and local governments.

        ‘(F) Provisions that the center will take all practicable steps to develop continuing sources of financial support for the center, particularly from sources in the private sector.

        ‘(G) Provisions for--

          ‘(i) monitoring and evaluating the activities by the nonprofit institution operating the center; and

          ‘(ii) accounting for money received by the institution under this section.

      ‘(5) AWARDING GRANTS- Grants made under paragraph (2) shall be made on a competitive basis. In making grants under paragraph (2), the Secretary shall give preference to grant applications providing for the establishment of centers for rural cooperative development that--

        ‘(A) demonstrate a proven track record in administering a nationally coordinated, regionally or State-wide operated project;

        ‘(B) demonstrate previous expertise in providing technical assistance in rural areas;

        ‘(C) demonstrate the ability to assist in the retention of existing businesses, facilitate the establishment of new cooperatives and new cooperative approaches, and generate new employment opportunities that will improve the economic conditions of rural areas;

        ‘(D) demonstrate the ability to create horizontal linkages among businesses within and among various sectors in rural America and vertical linkages to domestic and international markets;

        ‘(E) commit to providing technical assistance and other services to underserved and economically distressed areas in rural America; and

        ‘(F) commit to providing greater than a 25 percent matching contribution with private funds and in-kind contributions.

      ‘(6) TWO-YEAR GRANTS- The Secretary shall evaluate programs receiving assistance under this subsection and, if the Secretary determines it to be in the best interest of the Federal Government, the Secretary may approve grants under this subsection for up to 2 years.

      ‘(7) TECHNICAL ASSISTANCE TO PREVENT EXCESSIVE UNEMPLOYMENT OR UNDEREMPLOYMENT- In carrying out this subsection, the Secretary may provide technical assistance to alleviate or prevent conditions of excessive unemployment, underemployment, outmigration, or low employment growth in economically distressed rural areas that the Secretary determines have a substantial need for the assistance. The assistance may include planning and feasibility studies, management and operational assistance, and studies evaluating the need for development potential of projects that increase employment and improve economic growth in the areas.

      ‘(8) GRANTS TO DEFRAY ADMINISTRATIVE COSTS- The Secretary may make grants to defray not to exceed 75 percent of the costs incurred by organizations and public bodies to carry out projects for which grants or loans are made under this subsection. For purposes of determining the non-Federal share of the costs, the Secretary shall consider contributions in cash and in kind, fairly evaluated, including premises, equipment, and services.

      ‘(9) AUTHORIZATION OF APPROPRIATIONS- There are authorized to be appropriated to carry out this subsection $50,000,000 for each of fiscal years 1996 through 2002.’; and

      (6) by adding at the end the following:

    ‘(g) LOAN GUARANTEES FOR THE PURCHASE OF COOPERATIVE STOCK-

      ‘(1) DEFINITION OF FARMER- In this subsection, the term ‘farmer’ means any farmer that meets the family farmer definition, as determined by the Secretary.

      ‘(2) LOAN GUARANTEES- The Secretary may guarantee loans under this section to individual farmers for the purpose of purchasing capital stock of a farmer cooperative established for the purpose of processing an agricultural commodity.

      ‘(3) ELIGIBILITY- To be eligible for a loan guarantee under this subsection, a farmer must produce the agricultural commodity that will be processed by the cooperative.

      ‘(4) COLLATERAL- To be eligible for a loan guarantee under this subsection for the establishment of a cooperative, the borrower of the loan must pledge collateral to secure at least 25 percent of the amount of the loan.’.

    (b) CONFORMING AMENDMENTS-

      (1) Clause (iii) of section 307(a)(6)(B) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1927(a)(6)(B)) (as redesignated by section 741(b)(1)(B)) is amended by striking ‘subsections (d) and (e) of section 310B’ and inserting ‘section 310B(d)’.

      (2) Section 232(c)(2) of the Department of Agriculture Reorganization Act of 1994 (7 U.S.C. 6942(c)(2)) is amended--

        (A) by striking ‘310B(b)(2)’ and inserting ‘310B(b)’; and

        (B) by striking ‘1932(b)(2)’ and inserting ‘1932(b)’.

      (3) Section 233(b) of the Department of Agriculture Reorganization Act of 1994 (7 U.S.C. 6943(b)) is amended--

        (A) by striking paragraph (2); and

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

SEC. 748. ADMINISTRATION.

    Section 331(b)(4) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1981(b)(4)) is amended--

      (1) by inserting after ‘claims’ the following: ‘(including debts and claims arising from loan guarantees)’;

      (2) by striking ‘Farmers Home Administration or’ and inserting ‘Consolidated Farm Service Agency, Rural Utilities Service, Rural Housing and Community Development Service, Rural Business and Cooperative Development Service, or a successor agency, or’; and

      (3) by inserting after ‘activities under the Housing Act of 1949.’ the following: ‘In the case of a security instrument entered into under the Rural Electrification Act of 1936 (7 U.S.C. 901 et seq.), the Secretary shall notify the Attorney General of the intent of the Secretary to exercise the authority of the Secretary under this paragraph.’.

SEC. 749. AUTHORIZATION OF APPROPRIATIONS.

    (a) IN GENERAL- Section 338 of the Consolidated Farm and Rural Development Act (7 U.S.C. 1988) is amended--

      (1) by striking subsections (b), (c), (d), and (e); and

      (2) by redesignating subsection (f) as subsection (b).

    (b) CONFORMING AMENDMENTS-

      (1) The first sentence of section 309(g)(1) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1929(g)(1)) is amended by inserting after ‘section 338(c)’ the following: ‘(before the amendment made by section 447(a)(1) of the Agricultural Reform and Improvement Act of 1996)’.

      (2) Section 343(b) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1991(b)) is amended by striking ‘338(f),’ and inserting ‘338(b),’.

SEC. 750. TESTIMONY BEFORE CONGRESSIONAL COMMITTEES.

    Section 345 of the Consolidated Farm and Rural Development Act (7 U.S.C. 1993) is repealed.

SEC. 751. PROHIBITION ON USE OF LOANS FOR CERTAIN PURPOSES.

    Section 363 of the Consolidated Farm and Rural Development Act (7 U.S.C. 2006e) is amended by adding at the end the following: ‘This section shall not apply to a loan made or guaranteed under this title for a utility line.’.

SEC. 752. RURAL DEVELOPMENT CERTIFIED LENDERS PROGRAM.

    The Consolidated Farm and Rural Development Act is amended by inserting after section 363 (7 U.S.C. 2006e) the following:

‘SEC. 364. RURAL DEVELOPMENT CERTIFIED LENDERS PROGRAM.

    ‘(a) CERTIFIED LENDERS PROGRAM-

      ‘(1) IN GENERAL- The Secretary may establish a program under which the Secretary may guarantee a loan for any rural development program that is made by a lender certified by the Secretary.

      ‘(2) CERTIFICATION REQUIREMENTS- The Secretary may certify a lender if the lender meets such criteria as the Secretary may prescribe in regulations, including the ability of the lender to properly make, service, and liquidate the guaranteed loans of the lender.

      ‘(3) CONDITION OF CERTIFICATION- As a condition of certification, the Secretary may require the lender to undertake to service the guaranteed loan using standards that are not less stringent than generally accepted banking standards concerning loan servicing that are used by prudent commercial or cooperative lenders.

      ‘(4) GUARANTEE- Notwithstanding any other provision of law, the Secretary may guarantee not more than 80 percent of a loan made by a certified lender described in paragraph (1), if the borrower of the loan meets the eligibility requirements and such other criteria for the loan guarantee that are established by the Secretary.

      ‘(5) CERTIFICATIONS- With respect to loans to be guaranteed, the Secretary may permit a certified lender to make appropriate certifications (as provided in regulations issued by the Secretary) --

        ‘(A) relating to issues such as creditworthiness, repayment ability, adequacy of collateral, and feasibility of the operation; and

        ‘(B) that the borrower is in compliance with all requirements of law, including regulations issued by the Secretary.

      ‘(6) RELATIONSHIP TO OTHER REQUIREMENTS- This subsection shall not affect the responsibility of the Secretary to determine eligibility, review financial information, and otherwise assess an application.

    ‘(b) PREFERRED CERTIFIED LENDERS PROGRAM-

      ‘(1) IN GENERAL- The Secretary may establish a preferred certified lenders program for lenders who establish their--

        ‘(A) knowledge of, and experience under, the program established under subsection (a);

        ‘(B) knowledge of the regulations concerning the particular guaranteed loan program; and

        ‘(C) proficiency related to the certified lender program requirements.

      ‘(2) ADDITIONAL LENDING INSTITUTIONS- The Secretary may certify any lending institution as a preferred certified lender if the institution meets such additional criteria as the Secretary may prescribe by regulation.

      ‘(3) REVOCATION OF DESIGNATION- The designation of a lender as a preferred certified lender shall be revoked if the Secretary determines that the lender is not adhering to the rules and regulations applicable to the program or if the loss experiences of a preferred certified lender are greater than other preferred certified lenders, except that the suspension or revocation shall not affect any outstanding guarantee.

      ‘(4) CONDITION OF CERTIFICATION- As a condition of the preferred certification, the Secretary shall require the lender to undertake to service the loan guaranteed by the Secretary under this subsection using generally accepted banking standards concerning loan servicing employed by prudent commercial or cooperative lenders. The Secretary shall, at least annually, monitor the performance of each preferred certified lender to ensure that the conditions of the certification are being met.

      ‘(5) EFFECT OF PREFERRED LENDER CERTIFICATION- Notwithstanding any other provision of law, the Secretary may--

        ‘(A) guarantee not more than 80 percent of any approved loan made by a preferred certified lender as described in this subsection, if the borrower meets the eligibility requirements and such other criteria as may be applicable to loans guaranteed by the Secretary; and

        ‘(B) permit preferred certified lenders to make all decisions, with respect to loans to be guaranteed by the Secretary under this subsection relating to creditworthiness, the closing, monitoring, collection, and liquidation of loans, and to accept appropriate certifications, as provided in regulations issued by the Secretary, that the borrower is in compliance with all requirements of law and regulations issued by the Secretary.’.

SEC. 753. SYSTEM FOR DELIVERY OF CERTAIN RURAL DEVELOPMENT PROGRAMS.

    (a) IN GENERAL- Section 365 of the Consolidated Farm and Rural Development Act (7 U.S.C. 2008) is repealed.

    (b) CONFORMING AMENDMENTS-

      (1) Section 2310 of the Food, Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 2007) is amended--

        (A) in subsection (a), by striking ‘or the program established in sections 365 and 366 of the Consolidated Farm and Rural Development Act (as added by chapter 3 of this subtitle)’;

        (B) in subsection (b)--

          (i) by striking ‘STATES- ’ and all that follows through ‘PARTNERSHIPS- The’ in paragraph (1) and inserting ‘STATES- The’; and

          (ii) by striking paragraph (2);

        (C) in subsection (c)--

          (i) by striking ‘PROJECTS- ’ and all that follows through ‘PARTNERSHIPS- Chapter’ in paragraph (1) and inserting ‘PROJECTS- Chapter’;

          (ii) by striking ‘subsection (b)(1)’ and inserting ‘subsection (b)’; and

          (iii) by striking paragraph (2); and

        (D) in subsection (d), by striking ‘and sections 365, 366, 367, and 368(b) of the Consolidated Farm and Rural Development Act (as added by chapter 3 of this subtitle)’.

      (2) Section 2375 of the Food, Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 6613) is amended--

        (A) in subsection (e), by striking ‘, as defined in section 365(b)(2) of the Consolidated Farm and Rural Development Act,’; and

        (B) by adding at the end the following:

    ‘(g) DEFINITION OF DESIGNATED RURAL DEVELOPMENT PROGRAM- In this section, the term ‘designated rural development program’ means a program carried out under section 304(b), 306(a), or 310B(e) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1924(b), 1926(a), and 1932(e)), or under section 1323 of the Food Security Act of 1985 (Public Law 99-198; 7 U.S.C. 1932 note), for which funds are available at any time during the fiscal year under the section.’.

      (3) Paragraph (2) of section 233(b) of the Department of Agriculture Reorganization Act of 1994 (7 U.S.C. 6943(b)) (as redesignated by section 747(b)(3)(B)) is amended by striking ‘sections 365 through 369 of the Consolidated Farm and Rural Development Act (7 U.S.C. 2008-2008d)’ and inserting ‘section 369 of the Consolidated Farm and Rural Development Act (7 U.S.C. 2008d)’.

SEC. 754. STATE RURAL ECONOMIC DEVELOPMENT REVIEW PANEL.

    Section 366 of the Consolidated Farm and Rural Development Act (7 U.S.C. 2008a) is repealed.

SEC. 755. LIMITED TRANSFER AUTHORITY OF LOAN AMOUNTS.

    Section 367 of the Consolidated Farm and Rural Development Act (7 U.S.C. 2008b) is repealed.

SEC. 756. ALLOCATION AND TRANSFER OF LOAN GUARANTEE AUTHORITY.

    Section 368 of the Consolidated Farm and Rural Development Act (7 U.S.C. 2008c) is repealed.

SEC. 757. NATIONAL SHEEP INDUSTRY IMPROVEMENT CENTER.

    The Consolidated Farm and Rural Development Act (as amended by section 641) is amended by adding at the end the following:

‘SEC. 375. NATIONAL SHEEP INDUSTRY IMPROVEMENT CENTER.

    ‘(a) DEFINITIONS- In this section:

      ‘(1) BOARD- The term ‘Board’ means the Board of Directors established under subsection (f).

      ‘(2) CENTER- The term ‘Center’ means the National Sheep Industry Improvement Center established under subsection (b).

      ‘(3) ELIGIBLE ENTITY- The term ‘eligible entity’ means an entity that promotes the betterment of the United States lamb or wool industry and that is--

        ‘(A) a public, private, or cooperative organization;

        ‘(B) an association, including a corporation not operated for profit;

        ‘(C) a federally recognized Indian Tribe; or

        ‘(D) a public or quasi-public agency.

      ‘(4) FUND- The term ‘Fund’ means the Natural Sheep Improvement Center Revolving Fund established under subsection (e).

    ‘(b) ESTABLISHMENT OF CENTER- The Secretary shall establish a National Sheep Industry Improvement Center.

    ‘(c) PURPOSES- The purposes of the Center shall be to--

      ‘(1) promote strategic development activities and collaborative efforts by private and State entities to maximize the impact of Federal assistance to strengthen and enhance the production and marketing of lamb and wool in the United States;

      ‘(2) optimize the use of available human capital and resources within the sheep industry;

      ‘(3) provide assistance to meet the needs of the sheep industry for infrastructure development, business development, production, resource development, and market and environmental research;

      ‘(4) advance activities that empower and build the capacity of the United States sheep industry to design unique responses to the special needs of the lamb and wool industries on both a regional and national basis; and

      ‘(5) adopt flexible and innovative approaches to solving the long-term needs of the United States sheep industry.

    ‘(d) STRATEGIC PLAN-

      ‘(1) IN GENERAL- The Center shall submit to the Secretary an annual strategic plan for the delivery of financial assistance provided by the Center.

      ‘(2) REQUIREMENTS- A strategic plan shall identify--

        ‘(A) goals, methods, and a benchmark for measuring the success of carrying out the plan and how the plan relates to the national and regional goals of the Center;

        ‘(B) the amount and sources of Federal and non-Federal funds that are available for carrying out the plan;

        ‘(C) funding priorities;

        ‘(D) selection criteria for funding; and

        ‘(E) a method of distributing funding.

    ‘(e) REVOLVING FUND-

      ‘(1) ESTABLISHMENT- There is established in the Treasury the Natural Sheep Improvement Center Revolving Fund. The Fund shall be available to the Center, without fiscal year limitation, to carry out the authorized programs and activities of the Center under this section.

      ‘(2) CONTENTS OF FUND- There shall be deposited in the Fund--

        ‘(A) such amounts as may be appropriated, transferred, or otherwise made available to support programs and activities of the Center;

        ‘(B) payments received from any source for products, services, or property furnished in connection with the activities of the Center;

        ‘(C) fees and royalties collected by the Center from licensing or other arrangements relating to commercialization of products developed through projects funded, in whole or part, by grants, contracts, or cooperative agreements executed by the Center;

        ‘(D) proceeds from the sale of assets, loans, and equity interests made in furtherance of the purposes of the Center;;

        ‘(E) donations or contributions accepted by the Center to support authorized programs and activities; and

        ‘(F) any other funds acquired by the Center.

      ‘(3) USE OF FUND-

        ‘(A) IN GENERAL- The Center may use amounts in the Fund to make grants and loans to eligible entities in accordance with a strategic plan submitted under subsection (d).

        ‘(B) CONTINUED EXISTENCE- The Center shall manage the Fund in a manner that ensures that sufficient amounts are available in the Fund to carry out subsection (c).

        ‘(C) DIVERSE AREA- The Center shall, to the maximum extent practicable, use the Fund to serve broad geographic areas and regions of diverse production.

        ‘(D) VARIETY OF LOANS AND GRANTS- The Center shall, to the maximum extent practicable, use the Fund to provide a variety of intermediate- and long-term grants and loans.

        ‘(E) ADMINISTRATION- The Center may not use more than 3 percent of the amounts in the Fund for a fiscal year for the administration of the Center.

        ‘(F) INFLUENCING LEGISLATION- None of the amounts in the Fund may be used to influence legislation.

        ‘(G) ACCOUNTING- To be eligible to receive amounts from the Fund, an entity must agree to account for the amounts using generally accepted accounting principles.

        ‘(H) USES OF FUND- The Center may use amounts in the Fund to--

          ‘(i) participate with Federal and State agencies in financing activities that are in accordance with a strategic plan submitted under subsection (d), including participation with several States in a regional effort;

          ‘(ii) participate with other public and private funding sources in financing activities that are in accordance with the strategic plan, including participation in a regional effort;

          ‘(iii) provide security for, or make principle or interest payments on, revenue or general obligation bonds issued by a State, if the proceeds from the sale of the bonds are deposited in the Fund;

          ‘(iv) accrue interest;

          ‘(v) guarantee or purchase insurance for local obligations to improve credit market access or reduce interest rates for a project that is in accordance with the strategic plan; or

          ‘(vi) sell assets, loans, and equity interests acquired in connection with the financing of projects funded by the Center.

      ‘(4) LOANS-

        ‘(A) RATE- A loan from the Fund may be made at an interest rate that is below the market rate or may be interest free.

        ‘(B) TERM- The term of a loan may not exceed the shorter of--

          ‘(i) the useful life of the activity financed; or

          ‘(ii) 40 years.

        ‘(C) SOURCE OF REPAYMENT- The Center may not make a loan from the Fund unless the recipient establishes an assured source of repayment.

        ‘(D) PROCEEDS- All payments of principal and interest on a loan made from the Fund shall be deposited into the Fund.

      ‘(5) MAINTENANCE OF EFFORT- The Center shall use the Fund only to supplement and not to supplant Federal, State, and private funds expended for rural development.

      ‘(6) FUNDING-

        ‘(A) DEPOSIT OF FUNDS- All Federal and non-Federal amounts received by the Center to carry out this section shall be deposited in the Fund.

        ‘(B) MANDATORY FUNDS- Out of any moneys in the Treasury not otherwise appropriated, the Secretary of the Treasury shall provide to the Center not to exceed $20,000,000 to carry out this section.

        ‘(C) ADDITIONAL FUNDS- In addition to any funds provided under subparagraph (B), there is authorized to be appropriated to carry out this section $30,000,000 to carry out this section.

        ‘(D) PRIVATIZATION- Federal funds shall not be used to carry out this section beginning on the earlier of--

          ‘(i) the date that is 10 years after the effective date of this section; or

          ‘(ii) the day after a total of $50,000,000 is made available under subparagraphs (B) and (C) to carry out this section.

    ‘(f) BOARD OF DIRECTORS-

      ‘(1) IN GENERAL- The management of the Center shall be vested in a Board of Directors.

      ‘(2) POWERS- The Board shall--

        ‘(A) be responsible for the general supervision of the Center;

        ‘(B) review any grant, loan, contract, or cooperative agreement to be made or entered into by the Center and any financial assistance provided to the Center;

        ‘(C) make the final decision, by majority vote, on whether and how to provide assistance to an applicant; and

        ‘(D) develop and establish a budget plan and a long-term operating plan to carry out the goals of the Center.

      ‘(3) COMPOSITION- The Board shall be composed of--

        ‘(A) 7 voting members, of whom--

          ‘(i) 4 members shall be active producers of sheep in the United States;

          ‘(ii) 2 members shall have expertise in finance and management; and

          ‘(iii) 1 member shall have expertise in lamb and wool marketing; and

        ‘(B) 2 nonvoting members, of whom--

          ‘(i) 1 member shall be the Under Secretary of Agriculture for Rural Economic and Community Development; and

          ‘(ii) 1 member shall be the Under Secretary of Agriculture for Research, Education, and Economics.

      ‘(4) ELECTION- A voting member of the Board shall be chosen in an election of the members of a national organization selected by the Secretary that--

        ‘(A) consists only of sheep producers in the United States; and

        ‘(B) has as the primary interest of the organization the production of lamb and wool in the United States.

      ‘(5) TERM OF OFFICE-

        ‘(A) IN GENERAL- Subject to subparagraph (B), the term of office of a voting member of the Board shall be 3 years.

        ‘(B) STAGGERED INITIAL TERMS- The initial voting members of the Board (other than the chairperson of the initially established Board) shall serve for staggered terms of 1, 2, and 3 years, as determined by the Secretary.

        ‘(C) REELECTION- A voting member may be reelected for not more than 1 additional term.

      ‘(6) VACANCY-

        ‘(A) IN GENERAL- A vacancy on the Board shall be filled in the same manner as the original Board.

        ‘(B) REELECTION- A member elected to fill a vacancy for an unexpired term may be reelected for 1 full term.

      ‘(7) CHAIRPERSON-

        ‘(A) IN GENERAL- The Board shall select a chairperson from among the voting members of the Board.

        ‘(B) TERM- The term of office of the chairperson shall be 2 years.

      ‘(8) ANNUAL MEETING-

        ‘(A) IN GENERAL- The Board shall meet not less than once each fiscal year at the call of the chairperson or at the request of the executive director appointed under subsection (g)(1).

        ‘(B) LOCATION- The location of a meeting of the Board shall be established by the Board.

      ‘(9) VOTING-

        ‘(A) QUORUM- A quorum of the Board shall consist of a majority of the voting members.

        ‘(B) MAJORITY VOTE- A decision of the Board shall be made by a majority of the voting members of the Board.

      ‘(10) CONFLICTS OF INTEREST-

        ‘(A) IN GENERAL- A member of the Board shall not vote on any matter respecting any application, contract, claim, or other particular matter pending before the Board in which, to the knowledge of the member, an interest is held by--

          ‘(i) the member;

          ‘(ii) any spouse of the member;

          ‘(iii) any child of the member;

          ‘(iv) any partner of the member;

          ‘(v) any organization in which the member is serving as an officer, director, trustee, partner, or employee; or

          ‘(vi) any person with whom the member is negotiating or has any arrangement concerning prospective employment or with whom the member has a financial interest.

        ‘(B) REMOVAL- Any action by a member of the Board that violates subparagraph (A) shall be cause for removal from the Board.

        ‘(C) VALIDITY OF ACTION- An action by a member of the Board that violates subparagraph (A) shall not impair or otherwise affect the validity of any otherwise lawful action by the Board.

        ‘(D) DISCLOSURE-

          ‘(i) IN GENERAL- If a member of the Board makes a full disclosure of an interest and, prior to any participation by the member, the Board determines, by majority vote, that the interest is too remote or too inconsequential to affect the integrity of any participation by the member, the member may participate in the matter relating to the interest.

          ‘(ii) VOTE- A member that discloses an interest under clause (i) shall not vote on a determination of whether the member may participate in the matter relating to the interest.

        ‘(E) REMANDS-

          ‘(i) IN GENERAL- The Secretary may vacate and remand to the Board for reconsideration any decision made pursuant to subsection (e)(3)(H) if the Secretary determines that there has been a violation of this paragraph or any conflict of interest provision of the bylaws of the Board with respect to the decision.

          ‘(ii) REASONS- In the case of any violation and remand of a funding decision to the Board under clause (i), the Secretary shall inform the Board of the reasons for the remand.

      ‘(11) COMPENSATION-

        ‘(A) IN GENERAL- A member of the Board shall not receive any compensation by reason of service on the Board.

        ‘(B) EXPENSES- A member of the Board shall be reimbursed for travel, subsistence, and other necessary expenses incurred by the member in the performance of a duty of the member.

      ‘(12) BYLAWS- The Board shall adopt, and may from time to time amend, any bylaw that is necessary for the proper management and functioning of the Center.

      ‘(13) PUBLIC HEARINGS- Not later than 1 year after the effective date of this section, the Board shall hold public hearings on policy objectives of the program established under this section.

      ‘(14) ORGANIZATIONAL SYSTEM- The Board shall provide a system of organization to fix responsibility and promote efficiency in carrying out the functions of the Board.

      ‘(15) USE OF DEPARTMENT OF AGRICULTURE- The Board may, with the consent of the Secretary, utilize the facilities of and the services of employees of the Department of Agriculture, without cost to the Center.

    ‘(g) OFFICERS AND EMPLOYEES-

      ‘(1) EXECUTIVE DIRECTOR-

        ‘(A) IN GENERAL- The Board shall appoint an executive director to be the chief executive officer of the Center.

        ‘(B) TENURE- The executive director shall serve at the pleasure of the Board.

        ‘(C) COMPENSATION- Compensation for the executive director shall be established by the Board.

      ‘(2) OTHER OFFICERS AND EMPLOYEES- The Board may select and appoint officers, attorneys, employees, and agents who shall be vested with such powers and duties as the Board may determine.

      ‘(3) DELEGATION- The Board may, by resolution, delegate to the chairperson, the executive director, or any other officer or employee any function, power, or duty of the Board other than voting on a grant, loan, contract, agreement, budget, or annual strategic plan.

    ‘(h) CONSULTATION- To carry out this section, the Board may consult with--

      ‘(1) State departments of agriculture;

      ‘(2) Federal departments and agencies;

      ‘(3) nonprofit development corporations;

      ‘(4) colleges and universities;

      ‘(5) banking and other credit-related agencies;

      ‘(6) agriculture and agribusiness organizations; and

      ‘(7) regional planning and development organizations.

    ‘(i) OVERSIGHT-

      ‘(1) IN GENERAL- The Secretary shall review and monitor compliance by the Board and the Center with this section.

      ‘(2) SANCTIONS- If, following notice and opportunity for a hearing, the Secretary finds that the Board or the Center is not in compliance with this section, the Secretary may--

        ‘(A) cease making deposits to the Fund;

        ‘(B) suspend the authority of the Center to withdraw funds from the Fund; or

        ‘(C) impose other appropriate sanctions, including recoupment of money improperly expended for purposes prohibited or not authorized by this Act and disqualification from receipt of financial assistance under this section.

      ‘(3) REMOVING SANCTIONS- The Secretary shall remove sanctions imposed under paragraph (2) on a finding that there is no longer any failure by the Board or the Center to comply with this section or that the noncompliance shall be promptly corrected.’.

CHAPTER 2--RURAL COMMUNITY ADVANCEMENT PROGRAM

SEC. 761. RURAL COMMUNITY ADVANCEMENT PROGRAM.

    The Consolidated Farm and Rural Development Act (7 U.S.C. 1921 et seq.) is amended by adding at the end the following:

‘Subtitle E--Rural Community Advancement Program

‘SEC. 381A. DEFINITIONS.

    ‘In this subtitle:

      ‘(1) RURAL AND RURAL AREA- The terms ‘rural’ and ‘rural area’ mean, subject to section 306(a)(7), a city, town, or unincorporated area that has a population of 50,000 inhabitants or less, other than an urbanized area immediately adjacent to a city, town, or unincorporated area that has a population in excess of 50,000 inhabitants.

      ‘(2) STATE- The term ‘State’ means each of the 50 States, the District of Columbia, the Commonwealth of Puerto Rico, Guam, the Virgin Islands of the United States, American Samoa, the Commonwealth of the Northern Mariana Islands, the Trust Territory of the Pacific Islands, and the Federated States of Micronesia.

‘SEC. 381B. ESTABLISHMENT.

    ‘The Secretary shall establish a rural community advancement program to provide grants, loans, loan guarantees, and other assistance to meet the rural development needs of local communities in States and federally recognized Indian tribes.

‘SEC. 381C. NATIONAL OBJECTIVES.

    ‘The national objectives of the program established under this subtitle shall be to--

      ‘(1) promote strategic development activities and collaborative efforts by State and local communities, and federally recognized Indian tribes, to maximize the impact of Federal assistance;

      ‘(2) optimize the use of resources;

      ‘(3) provide assistance in a manner that reflects the complexity of rural needs, including the needs for business development, health care, education, infrastructure, cultural resources, the environment, and housing;

      ‘(4) advance activities that empower, and build the capacity of, State and local communities to design unique responses to the special needs of the State and local communities, and federally recognized Indian tribes, for rural development assistance; and

      ‘(5) adopt flexible and innovative approaches to solving rural development problems.

‘SEC. 381D. STRATEGIC PLANS.

    ‘(a) IN GENERAL- The Secretary shall direct each of the Directors of Rural Economic and Community Development State Offices to prepare a strategic plan for each State for the delivery of assistance under this subtitle within the State.

    ‘(b) ASSISTANCE-

      ‘(1) IN GENERAL- Financial assistance for rural development allocated for a State under this subtitle shall be used only for orderly community development that is consistent with the strategic plan of the State.

      ‘(2) RURAL AREA- Assistance under this subtitle may only be provided in a rural area.

      ‘(3) SMALL COMMUNITIES- In carrying out this subtitle within a State, the Secretary shall give priority to communities with the smallest populations and lowest per capita income.

    ‘(c) REVIEW- The Secretary shall review the strategic plan of a State at least once every 5 years.

    ‘(d) CONTENTS- A strategic plan of a State under this section shall be a plan that--

      ‘(1) coordinates economic, human, and community development plans and related activities proposed for an affected area;

      ‘(2) provides that the State and an affected community (including local institutions and organizations that have contributed to the planning process) shall act as full partners in the process of developing and implementing the plan;

      ‘(3) identifies goals, methods, and benchmarks for measuring the success of carrying out the plan and how the plan relates to local or regional ecosystems;

      ‘(4) provides for the involvement, in the preparation of the plan, of State, local, private, and public persons, State rural development councils, federally-recognized Indian tribes, and community-based organizations;

      ‘(5) identifies the amount and source of Federal and non-Federal resources that are available for carrying out the plan; and

      ‘(6) includes such other information as may be required by the Secretary.

‘SEC. 381E. ACCOUNTS.

    ‘(a) IN GENERAL- Notwithstanding any other provision of law, for each fiscal year, the Secretary shall consolidate into 3 accounts, corresponding to the 3 function categories established under subsection (c), the amounts made available for programs included in each function category.

    ‘(b) ALLOCATION WITHIN ACCOUNT- The Secretary shall allocate the amounts in each account for such program purposes authorized for the corresponding function category among the States, as the Secretary may determine in accordance with this subtitle.

    ‘(c) FUNCTION CATEGORIES- For purposes of subsection (a):

      ‘(1) RURAL HOUSING AND COMMUNITY DEVELOPMENT- The rural housing and community development category shall include funds made available for--

        ‘(A) community facility direct and guaranteed loans provided under section 306(a)(1);

        ‘(B) community facility grants provided under section 306(a)(21); and

        ‘(C) rental housing loans for new housing provided under section 515 of the Housing Act of 1949 (42 U.S.C. 1485).

      ‘(2) RURAL UTILITIES- The rural utilities category shall include funds made available for--

        ‘(A) water and waste disposal grants and direct and guaranteed loans provided under paragraphs (1) and (2) of section 306(a);

        ‘(B) rural water and wastewater technical assistance and training grants provided under section 306(a)(16);

        ‘(C) emergency community water assistance grants provided under section 306A; and

        ‘(D) solid waste management grants provided under section 310B(b).

      ‘(3) RURAL BUSINESS AND COOPERATIVE DEVELOPMENT- The rural business and cooperative development category shall include funds made available for--

        ‘(A) rural business opportunity grants provided under section 306(a)(11)(A);

        ‘(B) business and industry guaranteed loans provided under section 310B(a)(1); and

        ‘(C) rural business enterprise grants and rural educational network grants provided under section 310B(c).

    ‘(d) OTHER PROGRAMS- Subject to subsection (e), in addition to any other appropriated amounts, the Secretary may transfer amounts allocated for a State for any of the 3 function categories for a fiscal year under subsection (c) to--

      ‘(1) mutual and self-help housing grants provided under section 523 of the Housing Act of 1949 (42 U.S.C. 1490c);

      ‘(2) rural rental housing loans for existing housing provided under section 515 of the Housing Act of 1949 (42 U.S.C. 1485);

      ‘(3) rural cooperative development grants provided under section 310B(e); and

      ‘(4) grants to broadcasting systems provided under section 310B(f).

    ‘(e) TRANSFER-

      ‘(1) IN GENERAL- Subject to paragraph (2), the Secretary may transfer within each State up to 25 percent of the total amount allocated for a State under each function category referred to in subsection (c) for each fiscal year under this section to any other function category, or to a program referred to in subsection (d), but excluding State grants under section 381G.

      ‘(2) LIMITATION- Not more than 10 percent of the total amount (excluding grants to States under section 381G) made available for any fiscal year for the programs covered by each of the 3 function categories referred to in subsection (c), and the programs referred to in subsection (d), shall be available for the transfer.

    ‘(f) AVAILABILITY OF FUNDS- The Secretary may make available funds appropriated for the programs referred to in subsection (c) to defray the cost of any subsidy associated with a guarantee provided under section 381H, except that not more than 5 percent of the funds provided under subsection (c) may be made available within a State.

‘SEC. 381F. ALLOCATION.

    ‘(a) NATIONAL RESERVE- The Secretary may use not more than 10 percent of the total amount of funds made available for a fiscal year under section 381E to establish a national reserve for rural development that may be used by the Secretary in rural areas during the fiscal year to--

      ‘(1) meet situations of exceptional need;

      ‘(2) provide incentives to promote or reward superior performance; or

      ‘(3) carry out performance-oriented demonstration projects.

    ‘(b) INDIAN TRIBES-

      ‘(1) RESERVATION- The Secretary shall reserve not less than 3 percent of the total amounts made available for a fiscal year under section 381E to carry out rural development programs specified in subsections (c) and (d) of section 381D for federally recognized Indian tribes.

      ‘(2) ALLOCATION- The Secretary shall establish a formula for allocating the reserve and shall administer the reserve through the appropriate Director of the Rural Economic and Cooperative Development State office.

    ‘(c) STATE ALLOCATION-

      ‘(1) IN GENERAL- The Secretary shall allocate among all the States the amounts made available under section 381E in a fair, reasonable, and appropriate manner that takes into consideration rural population, levels of income, unemployment, and other relevant factors, as determined by the Secretary.

      ‘(2) MINIMUM ALLOCATION- In making the allocations for each of fiscal years 1996 through 2002, the Secretary shall ensure that the percentage allocation for each State is equal to the percentage of the average of the total funds made available to carry out the programs referred to in section 381E(c) that were obligated in the State for each of fiscal years 1993 and 1994.

‘SEC. 381G. GRANTS TO STATES.

    ‘(a) IN GENERAL- Subject to subsection (c), the Secretary shall grant to any eligible State from which a request is received for a fiscal year 5 percent of the amount allocated for the State for the fiscal year under section 381F(c).

    ‘(b) ELIGIBILITY- To be eligible to receive a grant under this section, the Secretary shall require that the State maintain the grant funds received and any non-Federal matching funds to carry out this subtitle in a separate account, to remain available until expended.

    ‘(c) MATCHING FUNDS- For any fiscal year, if non-Federal matching funds are provided for a State in an amount that is equal to 200 percent or more of an amount equal to 5 percent of the amount allocated for the State for the fiscal year under section 381F(c), the Secretary shall pay to the State the grant provided under this subsection in an amount equal to 5 percent of the amount allocated for the State for the fiscal year under section 381F(c).

    ‘(d) USE OF FUNDS- The Secretary shall require that funds provided to a State under this section be used in rural areas to achieve the purposes of the programs referred to in section 381E(c) in accordance with the strategic plan referred to in section 381D.

    ‘(e) MAINTENANCE OF EFFORT- The State shall provide assurances that funds received under this section will be used only to supplement, not to supplant, the amount of Federal, State, and local funds otherwise expended for rural development assistance in the State.

    ‘(f) APPEALS- The Secretary shall provide to a State an opportunity for an appeal of any action taken under this section.

    ‘(g) ADMINISTRATIVE COSTS- Federal funds shall not be used for any administrative costs incurred by a State in carrying out this subtitle.

    ‘(h) SPENDING OF FUNDS BY STATE-

      ‘(1) IN GENERAL- Payments to a State from a grant under this section for a fiscal year shall be obligated by the State in the fiscal year or in the succeeding fiscal year. A State shall obligate funds under this section to provide assistance to rural areas pursuant, to the maximum extent practicable, to applications received from the rural areas.

      ‘(2) FAILURE TO OBLIGATE- If a State fails to obligate payments in accordance with paragraph (1), the Secretary shall make a corresponding reduction in the amount of payments provided to the State under this section for the subsequent fiscal year.

      ‘(3) NONCOMPLIANCE-

        ‘(A) REVIEW- The Secretary shall review and monitor State compliance with this section.

        ‘(B) PENALTY- If the Secretary finds that there has been misuse of grant funds provided under this section, or noncompliance with any of the terms and conditions of a grant, after reasonable notice and opportunity for a hearing--

          ‘(i) the Secretary shall notify the State of the finding; and

          ‘(ii) no further payments to the State shall be made with respect to the programs funded under this section until the Secretary is satisfied that there is no longer any failure to comply or that the noncompliance will be promptly corrected.

        ‘(C) OTHER SANCTIONS- In the case of a finding of noncompliance made pursuant to subparagraph (B), the Secretary may, in addition to, or in lieu of, imposing the sanctions described in subparagraph (B), impose other appropriate sanctions, including recoupment of money improperly expended for purposes prohibited or not authorized by this section and disqualification from the receipt of financial assistance under this section.

    ‘(i) NO ENTITLEMENT TO CONTRACT, GRANT, OR ASSISTANCE- Nothing in this subtitle--

      ‘(1) entitles any person to assistance or a contract or grant; or

      ‘(2) limits the right of a State to impose additional limitations or conditions on assistance or a contract or grant under this section.

‘SEC. 381H. GUARANTEE AND COMMITMENT TO GUARANTEE LOANS.

    ‘(a) DEFINITION OF ELIGIBLE PUBLIC ENTITY- In this section, the term ‘eligible public entity’ means any unit of general local government.

    ‘(b) GUARANTEE AND COMMITMENT- The Secretary is authorized, on such terms and conditions as the Secretary may prescribe, to guarantee and make commitments to guarantee the notes or other obligations issued by eligible public entities, or by public agencies designated by the eligible public entities, for the purposes of financing rural development assistance activities authorized and funded under section 381G.

    ‘(c) PREREQUISITES- No guarantee or commitment to guarantee shall be made with respect to any note or other obligation if the issuer’s total outstanding notes or obligations guaranteed under this section (excluding any amount repaid under the contract entered into under subsection (e)(1)(A)) would exceed an amount equal to 5 times the amount of the grant approval for the issuer pursuant to section 381G.

    ‘(d) PAYMENT OF PRINCIPAL, INTEREST, AND COSTS- Notwithstanding any other provision of this subtitle, grants allocated to an issuer pursuant to this subtitle (including program income derived from the grants) shall be authorized for use in the payment of principal and interest due (including such servicing, underwriting, or other costs as may be specified in regulations of the Secretary) on the notes or other obligations guaranteed pursuant to this section.

    ‘(e) REPAYMENT CONTRACT; SECURITY-

      ‘(1) IN GENERAL- To ensure the repayment of notes or other obligations and charges incurred under this section and as a condition for receiving the guarantees, the Secretary shall require the issuer to--

        ‘(A) enter into a contract, in a form acceptable to the Secretary, for repayment of notes or other obligations guaranteed under this section;

        ‘(B) pledge any grant for which the issuer may become eligible under this subtitle; and

        ‘(C) furnish, at the discretion of the Secretary, such other security as may be considered appropriate by the Secretary in making the guarantees.

      ‘(2) SECURITY- To assist in ensuring the repayment of notes or other obligations and charges incurred under this section, a State shall pledge any grant for which the State may become eligible under this subtitle as security for notes or other obligations and charges issued under this section by any unit of general local government in the State.

    ‘(f) PLEDGED GRANTS FOR REPAYMENTS- Notwithstanding any other provision of this subtitle, the Secretary is authorized to apply grants pledged pursuant to paragraphs (1)(B) and (2) of subsection (e) to any repayments due the United States as a result of the guarantees.

    ‘(g) OUTSTANDING OBLIGATIONS- The total amount of outstanding obligations guaranteed on a cumulative basis by the Secretary pursuant to subsection (b) shall not at any time exceed such amount as may be authorized to be appropriated for any fiscal year.

    ‘(h) PURCHASE OF GUARANTEED OBLIGATIONS BY FEDERAL FINANCING BANK- Notes or other obligations guaranteed under this section may not be purchased by the Federal Financing Bank.

    ‘(i) FULL FAITH AND CREDIT- The full faith and credit of the United States is pledged to the payment of all guarantees made under this section. Any such guarantee made by the Secretary shall be conclusive evidence of the eligibility of the obligations for the guarantee with respect to principal and interest. The validity of the guarantee shall be incontestable in the hands of a holder of the guaranteed obligations.

‘SEC. 381I. LOCAL INVOLVEMENT.

    ‘The Secretary shall require that an applicant for assistance under this subtitle demonstrate evidence of significant community support.

‘SEC. 381J. STATE-TO-STATE COLLABORATION.

    ‘The Secretary shall permit the establishment of voluntary pooling arrangements among States, and regional fund-sharing agreements, to carry out this subtitle.

‘SEC. 381K. RURAL VENTURE CAPITAL DEMONSTRATION PROGRAM.

    ‘(a) IN GENERAL- The Secretary shall designate up to 10 community development venture capital organizations to demonstrate the utility of guarantees to attract increased private investment in rural private business enterprises.

    ‘(b) RURAL BUSINESS INVESTMENT POOL-

      ‘(1) ESTABLISHMENT- To be eligible to participate in the demonstration program, an organization referred to in subsection (a) shall establish a rural business private investment pool (referred to in this subsection as a ‘pool’) for the purpose of making equity investments in rural private business enterprises.

      ‘(2) GUARANTEE- From funds allocated for the national reserve under section 381F(a), the Secretary shall guarantee the funds in a pool against loss, except that the guarantee shall not exceed an amount equal to 30 percent of the total funds in the pool.

      ‘(3) AMOUNT- The Secretary shall issue guarantees covering not more than $15,000,000 of obligations for each of fiscal years 1996 through 2002.

      ‘(4) TERM- The term of a guarantee provided under this subsection shall not exceed 10 years.

      ‘(5) SUBMISSION OF PLAN- To be eligible to participate in the demonstration program, an organization referred to in subsection (a) shall submit a plan that describes--

        ‘(A) potential sources and uses of the pool to be established by the organization;

        ‘(B) the utility of the guarantee authority in attracting capital for the pool; and

        ‘(C) on selection, mechanisms for notifying State, local, and private nonprofit business development organizations and businesses of the existence of the pool.

      ‘(6) COMPETITION-

        ‘(A) IN GENERAL- The Secretary shall conduct a competition for the designation and establishment of pools.

        ‘(B) PRIORITY- In conducting the competition, the Secretary shall give priority to organizations that--

          ‘(i) have a demonstrated record of performance or have a board and executive director with experience in venture capital, small business equity investments, or community development finance;

          ‘(ii) propose to serve low-income communities;

          ‘(iii) propose to maintain an average investment of not more than $500,000 from the pool of the organization;

          ‘(iv) invest funds statewide or in a multicounty region; and

          ‘(v) propose to target job opportunities resulting from the investments primarily to economically disadvantaged individuals.

        ‘(C) GEOGRAPHIC DIVERSITY- To the extent practicable, the Secretary shall select organizations in diverse geographic areas.

‘SEC. 381L. ANNUAL REPORT.

    ‘(a) IN GENERAL- The Secretary, in collaboration with public, State, local, and private entities, State rural development councils, and community-based organizations, shall prepare an annual report that contains evaluations, assessments, and performance outcomes concerning the rural community advancement programs carried out under this subtitle.

    ‘(b) SUBMISSION- Not later than March 1 of each year, the Secretary shall--

      ‘(1) submit the report required under subsection (a) to Congress and the chief executives of States participating in the program established under this subtitle; and

      ‘(2) make the report available to State and local participants.

‘SEC. 381M. RURAL DEVELOPMENT INTERAGENCY WORKING GROUP.

    ‘(a) IN GENERAL- The Secretary shall provide leadership within the Executive branch for, and assume responsibility for, establishing an interagency working group chaired by the Secretary.

    ‘(b) DUTIES- The working group shall establish policy, provide coordination, make recommendations, and evaluate the performance of or for all Federal rural development efforts.

‘SEC. 381N. DUTIES OF RURAL ECONOMIC AND COMMUNITY DEVELOPMENT STATE OFFICES.

    ‘In carrying out this subtitle, the Director of a Rural Economic and Community Development State Office shall--

      ‘(1) to the maximum extent practicable, ensure that the State strategic plan is implemented;

      ‘(2) coordinate community development objectives within the State;

      ‘(3) establish links between local, State, and field office program administrators of the Department of Agriculture;

      ‘(4) ensure that recipient communities comply with applicable Federal and State laws and requirements; and

      ‘(5) integrate State development programs with assistance under this subtitle.

‘SEC. 381O. ELECTRONIC TRANSFER.

    ‘The Secretary shall transfer funds in accordance with this subtitle through electronic transfer as soon as practicable after the effective date of this subtitle.’.

SEC. 762. COMMUNITY FACILITIES GRANT PROGRAM.

    Section 306(a) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1926(a)) is amended by adding at the end the following:

      ‘(21) COMMUNITY FACILITIES GRANT PROGRAM-

        ‘(A) IN GENERAL- The Secretary may make grants, in a total amount not to exceed $10,000,000 for any fiscal year, to associations, units of general local government, nonprofit corporations, and federally recognized Indian tribes to provide the Federal share of the cost of developing specific essential community facilities in rural areas.

        ‘(B) FEDERAL SHARE-

          ‘(i) IN GENERAL- Except as provided in clauses (ii) and (iii), the Secretary shall, by regulation, establish the amount of the Federal share of the cost of the facility under this paragraph.

          ‘(ii) MAXIMUM AMOUNT- The amount of a grant provided under this paragraph shall not exceed 75 percent of the cost of developing a facility.

          ‘(iii) GRADUATED SCALE- The Secretary shall provide for a graduated scale for the amount of the Federal share provided under this paragraph, with higher Federal shares for facilities in communities that have lower community population and income levels, as determined by the Secretary.’.

Subtitle C--Amendments to the Rural Electrification Act of 1936

SEC. 771. PURPOSES; INVESTIGATIONS AND REPORTS.

    Section 2 of the Rural Electrification Act of 1936 (7 U.S.C. 902) is amended--

      (1) by striking ‘SEC. 2. (a) The Secretary of Agriculture is’ and inserting the following:

‘SEC. 2. GENERAL AUTHORITY OF THE SECRETARY OF AGRICULTURE.

    ‘(a) LOANS- The Secretary of Agriculture (referred to in this Act as the ‘Secretary’) is’;

      (2) in subsection (a)--

        (A) by striking ‘and the furnishing’ the first place it appears and all that follows through ‘central station service’; and

        (B) by striking ‘systems; to make’ and all that follows through the period at the end of the subsection and inserting ‘systems’; and

      (3) by striking subsection (b) and inserting the following:

    ‘(b) INVESTIGATIONS AND REPORTS- The Secretary may make, or cause to be made, studies, investigations, and reports regarding matters, including financial, technological, and regulatory matters, affecting the condition and progress of electric, telecommunications, and economic development in rural areas and publish and disseminate information with respect to the matters.’.

SEC. 772. AUTHORIZATION OF APPROPRIATIONS.

    (a) IN GENERAL- Section 3 of the Rural Electrification Act of 1936 (7 U.S.C. 903) is amended to read as follows:

‘SEC. 3. AUTHORIZATION OF APPROPRIATIONS.

    ‘There are authorized to be appropriated such sums as are necessary to carry out this Act.’.

    (b) CONFORMING AMENDMENTS-

      (1) Section 301(a) of the Rural Electrification Act of 1936 (7 U.S.C. 931(a)) is amended--

        (A) by striking ‘(a)’; and

        (B) in paragraph (3), by striking ‘notwithstanding section 3(a) of title I,’.

      (2) Section 302(b)(2) of the Rural Electrification Act of 1936 (7 U.S.C. 932(b)(2)) is amended by striking ‘pursuant to section 3(a) of this Act’.

      (3) The last sentence of section 406(a) of the Rural Electrification Act of 1936 (7 U.S.C. 946(a)) is amended by striking ‘pursuant to section 3(a) of this Act’.

SEC. 773. LOANS FOR ELECTRICAL PLANTS AND TRANSMISSION LINES.

    Section 4 of the Rural Electrification Act of 1936 (7 U.S.C. 904) is amended--

      (1) in the first sentence--

        (A) by striking ‘for the furnishing of’ and all that follows through ‘central station service and’; and

        (B) by striking ‘the provisions of sections 3(d) and 3(e) but without regard to the 25 per centum limitation therein contained,’ and inserting ‘section 3,’;

      (2) in the second sentence, by striking ‘: Provided further, That all’ and all that follows through ‘loan: And provided further, That’ and inserting ‘, except that’; and

      (3) in the third sentence, by striking ‘and section 5’.

SEC. 774. LOANS FOR ELECTRICAL AND PLUMBING EQUIPMENT.

    (a) IN GENERAL- Section 5 of the Rural Electrification Act of 1936 (7 U.S.C. 905) is repealed.

    (b) CONFORMING AMENDMENTS- Section 12(a) of the Rural Electrification Act of 1936 (7 U.S.C. 912(a)) is amended--

      (1) by striking ‘: Provided, however, That’ and inserting ‘, except that,’; and

      (2) by striking ‘, and with respect to any loan made under section 5,’ and all that follows through ‘section 3’.

SEC. 775. TESTIMONY ON BUDGET REQUESTS.

    Section 6 of the Rural Electrification Act of 1936 (7 U.S.C. 906) is amended by striking the second sentence.

SEC. 776. TRANSFER OF FUNCTIONS OF ADMINISTRATION CREATED BY EXECUTIVE ORDER.

    Section 8 of the Rural Electrification Act of 1936 (7 U.S.C. 908) is repealed.

SEC. 777. ANNUAL REPORT.

    Section 10 of the Rural Electrification Act of 1936 (7 U.S.C. 910) is repealed.

SEC. 778. PROHIBITION ON RESTRICTING WATER AND WASTE FACILITY SERVICES TO ELECTRIC CUSTOMERS.

    The Rural Electrification Act of 1936 is amended by inserting after section 16 (7 U.S.C. 916) the following:

‘SEC. 17. PROHIBITION ON RESTRICTING WATER AND WASTE FACILITY SERVICES TO ELECTRIC CUSTOMERS.

    ‘The Secretary shall establish rules and procedures that prohibit borrowers under title III or under the Consolidated Farm and Rural Development Act (7 U.S.C. 1921 et seq.) from conditioning or limiting access to, or the use of, water and waste facility services financed under the Consolidated Farm and Rural Development Act if the conditioning or limiting is based on whether individuals or entities in the area served or proposed to be served by the facility receive, or will accept, electric service from the borrower.’.

SEC. 779. TELEPHONE LOAN TERMS AND CONDITIONS.

    Section 309 of the Rural Electrification Act of 1936 (7 U.S.C. 939) is amended--

      (1) in subsection (a), by striking ‘(a) IN GENERAL- ’; and

      (2) by striking subsection (b).

SEC. 780. PRIVATIZATION PROGRAM.

    Section 311 of the Rural Electrification Act of 1936 (7 U.S.C. 940a) is repealed.

SEC. 781. RURAL BUSINESS INCUBATOR FUND.

    (a) IN GENERAL- Section 502 of the Rural Electrification Act of 1936 (7 U.S.C. 950aa-1) is repealed.

    (b) CONFORMING AMENDMENTS- Section 501 of the Rural Electrification Act of 1936 (7 U.S.C. 950aa) is amended--

      (1) in paragraph (5), by inserting ‘and’ at the end;

      (2) in paragraph (6), by striking ‘; and’ at the end and inserting a period; and

      (3) by striking paragraph (7).

Subtitle D--Miscellaneous Rural Development Provisions

SEC. 791. INTEREST RATE FORMULA.

    (a) BANKHEAD-JONES FARM TENANT ACT- Section 32(e) of the Bankhead-Jones Farm Tenant Act (7 U.S.C. 1011) is amended by striking the fifth sentence and inserting the following: ‘A loan under this subsection shall be made under a contract that provides, under such terms and conditions as the Secretary considers appropriate, for the repayment of the loan in not more than 30 years, with interest at a rate not to exceed the current market yield for outstanding municipal obligations with remaining periods to maturity comparable to the average maturity for the loan, adjusted to the nearest 1/8 of 1 percent.’.

    (b) WATERSHED PROTECTION AND FLOOD PREVENTION ACT- Section 8 of the Watershed Protection and Flood Prevention Act (16 U.S.C. 1006a) is amended by striking the second sentence and inserting the following: ‘A loan or advance under this section shall be made under a contract or agreement that provides, under such terms and conditions as the Secretary considers appropriate, for the repayment of the loan or advance in not more than 50 years from the date when the principal benefits of the works of improvement first become available, with interest at a rate not to exceed the current market yield for outstanding municipal obligations with remaining periods to maturity comparable to the average maturity for the loan, adjusted to the nearest 1/8 of 1 percent.’.

SEC. 792. GRANTS FOR FINANCIALLY STRESSED FARMERS, DISLOCATED FARMERS, AND RURAL FAMILIES.

    (a) IN GENERAL- Section 502 of the Rural Development Act of 1972 (7 U.S.C. 2662) is amended by striking subsection (f).

    (b) CONFORMING AMENDMENTS-

      (1) Section 2389 of the Food, Agriculture, Conservation, and Trade Act of 1990 (Public Law 101-624; 7 U.S.C. 2662 note) is amended by striking subsection (d).

      (2) Section 503(c) of the Rural Development Act of 1972 (7 U.S.C. 2663(c)) is amended--

        (A) in paragraph (1)--

          (i) by striking ‘(1)’;

          (ii) by striking ‘section 502(e)’ and all that follows through ‘shall be distributed’ and inserting ‘subsections (e), (h), and (i) of section 502 shall be distributed’; and

          (iii) by striking ‘objectives of’ and all that follows through ‘title’ and inserting ‘objectives of subsections (e), (h), and (i) of section 502’; and

        (B) by striking paragraph (2).

SEC. 793. COOPERATIVE AGREEMENTS.

    (a) Section 607(b) of the Rural Development Act of 1972 (7 U.S.C. 2204b(b)) is amended by striking paragraph (4) and inserting the following:

      ‘(4) COOPERATIVE AGREEMENTS-

        ‘(A) IN GENERAL- Notwithstanding chapter 63 of title 31, United States Code, the Secretary may enter into cooperative agreements with other Federal agencies, State and local governments, and any other organization or individual to improve the coordination and effectiveness of Federal programs, services, and actions affecting rural areas, including the establishment and financing of interagency groups, if the Secretary determines that the objectives of the agreement will serve the mutual interest of the parties in rural development activities.

        ‘(B) COOPERATORS- Each cooperator, including each Federal agency, to the extent that funds are otherwise available, may participate in any cooperative agreement or working group established pursuant to this paragraph by contributing funds or other resources to the Secretary to carry out the agreement or functions of the group.’.

    (b) Notwithstanding any other provision of law, section 343(a) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1991(a)) is amended in subparagraph (F)--

          (i) by striking ‘exceed 15 percent’ and all that follows through ‘Code’ and inserting the following: ‘exceed--

          ‘(i) 25 percent of the median acreage of the farms or ranches, as the case may be, in the county in which the farm or ranch operations of the applicant are located, as reported in the most recent census of agriculture taken under section 142 of title 13, United States Code.’.

TITLE VIII--RESEARCH EXTENSION AND EDUCATION

Subtitle A--Amendments to National Agricultural Research, Extension, and Teaching Policy Act of 1977 and Related Statutes

SEC. 801. PURPOSES OF AGRICULTURAL RESEARCH, EXTENSION, AND EDUCATION.

    Section 1402 of the National Agricultural Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3101) is amended to read as follows:

‘SEC. 1402. PURPOSES OF AGRICULTURAL RESEARCH, EXTENSION, AND EDUCATION.

    ‘The purposes of federally supported agricultural research, extension, and education are to--

      ‘(1) enhance the competitiveness of the United States agriculture and food industry in an increasingly competitive world environment;

      ‘(2) increase the long-term productivity of the United States agriculture and food industry while protecting the natural resource base on which rural America and the United States agricultural economy depend;

      ‘(3) develop new uses and new products for agricultural commodities, such as alternative fuels, and develop new crops;

      ‘(4) support agricultural research and extension to promote economic opportunity in rural communities and to meet the increasing demand for information and technology transfer throughout the United States agriculture industry;

      ‘(5) improve risk management in the United States agriculture industry;

      ‘(6) improve the safe production and processing of, and adding of value to, United States food and fiber resources using methods that are environmentally sound;

      ‘(7) support higher education in agriculture to give the next generation of Americans the knowledge, technology, and applications necessary to enhance the competitiveness of United States agriculture; and

      ‘(8) maintain an adequate, nutritious, and safe supply of food to meet human nutritional needs and requirements.’.

SEC. 802. SUBCOMMITTEE ON FOOD, AGRICULTURAL, AND FORESTRY RESEARCH.

    Section 401(h) of the National Science and Technology Policy, Organization, and Priorities Act of 1976 (42 U.S.C. 6651(h)) is amended by striking the second through fifth sentences.

SEC. 803. JOINT COUNCIL ON FOOD AND AGRICULTURAL SCIENCES.

    (a) IN GENERAL- Section 1407 of the National Agricultural Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3122) is repealed.

    (b) CONFORMING AMENDMENTS-

      (1) Section 1404 of the National Agricultural Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3103) is amended--

        (A) by striking paragraph (9); and

        (B) by redesignating paragraphs (10) through (18) as paragraphs (9) through (17), respectively.

      (2) Section 1405 of the National Agricultural Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3121) is amended--

        (A) in paragraph (5), by striking ‘Joint Council, Advisory Board,’ and inserting ‘Advisory Board’; and

        (B) in paragraph (11), by striking ‘the Joint Council,’.

      (3) Section 1410(2) of the National Agricultural Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3125(2)) is amended by striking ‘the recommendations of the Joint Council developed under section 1407(f),’.

      (4) Section 1412 of the National Agricultural Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3127) is amended--

        (A) in the section heading, by striking ‘joint council, advisory board,’ and inserting ‘advisory board’;

        (B) in subsection (a)--

          (i) by striking ‘Joint Council, the Advisory Board,’ and inserting ‘Advisory Board’;

          (ii) by striking ‘the cochairpersons of the Joint Council and’ each place it appears; and

          (iii) in paragraph (2), by striking ‘one shall serve as the executive secretary to the Joint Council, one shall serve as the executive secretary to the Advisory Board,’ and inserting ‘1 shall serve as the executive secretary to the Advisory Board’; and

        (C) in subsections (b) and (c), by striking ‘Joint Council, Advisory Board,’ each place it appears and inserting ‘Advisory Board’.

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

        (A) in subsection (a), by striking ‘Joint Council, the Advisory Board,’ and inserting ‘Advisory Board’;

        (B) in subsection (b), by striking ‘Joint Council, Advisory Board,’ and inserting ‘Advisory Board’; and

        (C) by striking subsection (d).

      (6) Section 1434(c) of the National Agricultural Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3196(c)) is amended--

        (A) in the second sentence, by striking ‘Joint Council, the Advisory Board,’ and inserting ‘Advisory Board’; and

        (B) in the fourth sentence, by striking ‘the Joint Council,’.

SEC. 804. NATIONAL AGRICULTURAL RESEARCH, EXTENSION, EDUCATION, AND ECONOMICS ADVISORY BOARD.

    (a) IN GENERAL- Section 1408 of the National Agricultural Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3123) is amended to read as follows:

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

    ‘(a) ESTABLISHMENT- The Secretary shall establish within the Department of Agriculture a board to be known as the ‘National Agricultural Research, Extension, Education, and Economics Advisory Board’.

    ‘(b) MEMBERSHIP-

      ‘(1) IN GENERAL- The Advisory Board shall consist of 25 members, appointed by the Secretary.

      ‘(2) SELECTION OF MEMBERS- The Secretary shall appoint members to the Advisory Board from individuals who are selected from national farm, commodity, agribusiness, environmental, consumer, and other organizations directly concerned with agricultural research, education, and extension programs.

      ‘(3) REPRESENTATION- A member of the Advisory Board may represent 1 or more of the organizations referred to in paragraph (2), except that 1 member shall be a representative of the scientific community that is not closely associated with agriculture. The Secretary shall ensure that the membership of the Advisory Board includes full-time farmers and ranchers and represents the interests of the full variety of stakeholders in the agricultural sector.

    ‘(c) DUTIES- The Advisory Board shall--

      ‘(1) review and provide consultation to the Secretary and land-grant colleges and universities on long-term and short-term national policies and priorities, as set forth in section 1402, relating to agricultural research, extension, education, and economics;

      ‘(2) evaluate the results and effectiveness of agricultural research, extension, education, and economics with respect to the policies and priorities;

      ‘(3) review and make recommendations to the Under Secretary of Agriculture for Research, Education, and Economics on the research, extension, education, and economics portion of the draft strategic plan required under section 306 of title 5, United States Code; and

      ‘(4) review the mechanisms of the Department of Agriculture for technology assessment (which should be conducted by qualified professionals) for the purposes of--

        ‘(A) performance measurement and evaluation of the implementation by the Secretary of the strategic plan required under section 306 of title 5, United States Code;

        ‘(B) implementation of the national research policies and priorities set forth in section 1402; and

        ‘(C) the development of mechanisms for the assessment of emerging public and private agricultural research and technology transfer initiatives.

    ‘(d) CONSULTATION- In carrying out this section, the Advisory Board shall solicit opinions and recommendations from persons who will benefit from and use federally funded agricultural research, extension, education, and economics.

    ‘(e) APPOINTMENT- A member of the Advisory Board shall be appointed by the Secretary for a term of up to 3 years. The members of the Advisory Board shall be appointed to serve staggered terms.

    ‘(f) FEDERAL ADVISORY COMMITTEE ACT- The Advisory Board shall be deemed to have filed a charter for the purpose of section 9(c) of the Federal Advisory Committee Act (5 U.S.C. App.).

    ‘(g) TERMINATION- The Advisory Board shall remain in existence until September 30, 2002.’.

    (b) CONFORMING AMENDMENTS-

      (1) Section 1404(1) of the National Agricultural Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3103(1)) is amended by striking ‘National Agricultural Research and Extension Users Advisory Board’ and inserting ‘National Agricultural Research, Extension, Education, and Economics Advisory Board’.

      (2) Section 1410(2) of the National Agricultural Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3125(2)) is amended by striking ‘the recommendations of the Advisory Board developed under section 1408(g),’ and inserting ‘any recommendations of the Advisory Board’.

      (3) The last sentence of section 4(a) of the Renewable Resources Extension Act of 1978 (16 U.S.C. 1673(a)) is amended by striking ‘National Agricultural Research and Extension Users Advisory Board’ and inserting ‘National Agricultural Research, Extension, Education, and Economics Advisory Board’.

SEC. 805. AGRICULTURAL SCIENCE AND TECHNOLOGY REVIEW BOARD.

    (a) IN GENERAL- Section 1408A of the National Agricultural Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3123a) is repealed.

    (b) CONFORMING AMENDMENTS-

      (1) Section 1404 of the National Agricultural Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3103) (as amended by section 803(b)(1)(B)) is further amended--

        (A) in paragraph (15), by adding ‘and’ at the end;

        (B) in paragraph (16), by striking ‘; and’ and inserting a period; and

        (C) by striking paragraph (17).

      (2) Section 1405(12) of the National Agricultural Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3121(12)) is amended by striking ‘, after coordination with the Technology Board,’.

      (3) Section 1410(2) of the National Agricultural Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3125(2)) (as amended by section 804(b)(2)) is further amended by striking ‘and the recommendations of the Technology Board developed under section 1408A(d)’.

      (4) Section 1412 of the National Agricultural Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3127) (as amended by section 803(b)(4)) is further amended--

        (A) in the section heading, by striking ‘and technology board’;

        (B) in subsection (a)--

          (i) by striking ‘and the Technology Board’ each place it appears; and

          (ii) in paragraph (2), by striking ‘and one shall serve as the executive secretary to the Technology Board’; and

        (C) in subsections (b) and (c), by striking ‘and Technology Board’ each place it appears.

      (5) Section 1413 of the National Agricultural Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3128) (as amended by section 803(b)(5)) is further amended--

        (A) in subsection (a), by striking ‘or the Technology Board’; and

        (B) in subsection (b), by striking ‘and the Technology Board’.

SEC. 806. FEDERAL ADVISORY COMMITTEE ACT EXEMPTION FOR FEDERAL-STATE COOPERATIVE PROGRAMS.

    Section 1409A of the National Agricultural Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3124a) is amended by adding at the end the following:

    ‘(e) APPLICABILITY OF FEDERAL ADVISORY COMMITTEE ACT-

      ‘(1) PUBLIC MEETINGS- All meetings of any entity described in paragraph (2) shall be publicly announced in advance and shall be open to the public. Detailed minutes of meetings and other appropriate records of the activities of such an entity shall be kept and made available to the public on request.

      ‘(2) EXEMPTION- The Federal Advisory Committee Act (5 U.S.C. App.) and title XVIII of the Food and Agriculture Act of 1977 (7 U.S.C. 2281 et seq.) shall not apply to any committee, board, commission, panel, or task force, or similar entity that--

        ‘(A) is created for the purpose of cooperative efforts in agricultural research, extension, or teaching; and

        ‘(B) consists entirely of full-time Federal employees and individuals who are employed by, or who are officials of, a State cooperative institution or a State cooperative agent.’.

SEC. 807. COORDINATION AND PLANNING OF AGRICULTURAL RESEARCH, EXTENSION, AND EDUCATION.

    Subtitle B of the National Agricultural Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3121 et seq.) is amended by adding at the end the following:

‘SEC. 1413A. ACCOUNTABILITY.

    ‘(a) IN GENERAL- The Secretary shall develop and carry out a system to monitor and evaluate agricultural research and extension activities conducted or supported by the Federal Government that will enable the Secretary to measure the impact of research, extension, and education programs according to priorities, goals, and mandates established by law.

    ‘(b) CONSISTENCY WITH OTHER REQUIREMENTS- The system shall be developed and carried out in a manner that is consistent with the Government Performance and Results Act of 1993 (Public Law 103-62; 107 Stat. 285) and amendments made by the Act.

‘SEC. 1413B. IMMINENT OR EMERGING THREATS TO FOOD SAFETY AND ANIMAL AND PLANT HEALTH.

    ‘In the case of any activities of an agency of the Department of Agriculture that relate to food safety, animal or plant health, research, education, or technology transfer, the Secretary may transfer up to 5 percent of any amounts made available to the agency for a fiscal year to an agency of the Department of Agriculture reporting to the Under Secretary of Agriculture for Research, Education, and Economics for the purpose of addressing imminent or emerging threats to food safety and animal and plant health.

‘SEC. 1413C. FEDERAL ADVISORY COMMITTEE ACT EXEMPTION FOR COMPETITIVE RESEARCH, EXTENSION, AND EDUCATION PROGRAMS.

    ‘The Federal Advisory Committee Act (5 U.S.C. App.) and title XVIII of the Food and Agriculture Act of 1977 (7 U.S.C. 2281 et seq.) shall not apply to any committee, board, commission, panel, or task force, or similar entity, created solely for the purpose of reviewing applications or proposals requesting funding under any competitive research, extension, or education program carried out by the Secretary.’.

SEC. 808. GRANTS AND FELLOWSHIPS FOR FOOD AND AGRICULTURAL SCIENCES EDUCATION.

    (a) IN GENERAL- Section 1417 of the National Agricultural Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3152) is amended--

      (1) in subsection (b)--

        (A) by inserting before ‘for a period’ the following: ‘or to research foundations maintained by the colleges and universities,’; and

        (B) by striking paragraph (4) and inserting the following:

      ‘(4) to design and implement food and agricultural programs to build teaching and research capacity at primarily minority institutions;’;

      (2) by redesignating subsections (h) and (i) as subsections (i) and (j), respectively;

      (3) by inserting after subsection (g) the following:

    ‘(h) SECONDARY EDUCATION AND 2-YEAR POSTSECONDARY EDUCATION TEACHING PROGRAMS-

      ‘(1) AGRISCIENCE AND AGRIBUSINESS EDUCATION- The Secretary shall--

        ‘(A) promote and strengthen secondary education and 2-year postsecondary education in agriscience and agribusiness in order to help ensure the existence in the United States of a qualified workforce to serve the food and agricultural sciences system; and

        ‘(B) promote complementary and synergistic linkages among secondary, 2-year postsecondary, and higher education programs in the food and agricultural sciences in order to promote excellence in education and encourage more young Americans to pursue and complete a baccalaureate or higher degree in the food and agricultural sciences.

      ‘(2) GRANTS- The Secretary may make competitive or noncompetitive grants, for grant periods not to exceed 5 years, to public secondary education institutions, 2-year community colleges, and junior colleges that have made a commitment to teaching agriscience and agribusiness--

        ‘(A) to enhance curricula in agricultural education;

        ‘(B) to increase faculty teaching competencies;

        ‘(C) to interest young people in pursuing a higher education in order to prepare for scientific and professional careers in the food and agricultural sciences;

        ‘(D) to promote the incorporation of agriscience and agribusiness subject matter into other instructional programs, particularly classes in science, business, and consumer education;

        ‘(E) to facilitate joint initiatives among other secondary or 2-year postsecondary institutions and with 4-year colleges and universities to maximize the development and use of resources such as faculty, facilities, and equipment to improve agriscience and agribusiness education; and

        ‘(F) to support other initiatives designed to meet local, State, regional, or national needs related to promoting excellence in agriscience and agribusiness education.’; and

      (4) in subsection (j) (as so redesignated), by striking ‘1995’ and inserting ‘2002’.

    (b) TRANSFER OF FUNCTIONS AND DUTIES PERTAINING TO THE FUTURE FARMERS OF AMERICA-

      (1) IN GENERAL- There are transferred to the Secretary of Agriculture all the functions and duties of the Secretary of Education under the Act entitled ‘An Act to incorporate the Future Farmers of America, and for other purposes’, approved August 30, 1950 (36 U.S.C. 271 et seq.).

      (2) PERSONNEL AND UNEXPENDED BALANCES- There are transferred to the Department of Agriculture all personnel and balances of unexpended appropriations available for carrying out the duties and functions transferred under paragraph (1).

      (3) AMENDMENTS- The Act entitled ‘An Act to incorporate the Future Farmers of America, and for other purposes’, approved August 30, 1950, is amended--

        (A) in section 7(c) (36 U.S.C. 277(c)) by striking ‘Secretary of Education, the executive secretary shall be a member of the Department of Education’ and inserting ‘Secretary of Agriculture, the executive secretary shall be an officer or employee of the Department of Agriculture’;

        (B) in section 8(a) (36 U.S.C. 278(a))--

          (i) by striking ‘Secretary of Education’ and inserting ‘Secretary of Agriculture’; and

          (ii) by striking ‘Department of Education’ and inserting ‘Department of Agriculture’; and

        (C) in section 18 (36 U.S.C. 288)--

          (i) by striking ‘Secretary of Education’ each place it appears and inserting ‘Secretary of Agriculture’; and

          (ii) by striking ‘Department of Education’ each place it appears and inserting ‘Department of Agriculture’.

SEC. 809. GRANTS FOR RESEARCH ON THE PRODUCTION AND MARKETING OF ALCOHOLS AND INDUSTRIAL HYDROCARBONS FROM AGRICULTURAL COMMODITIES AND FOREST PRODUCTS.

    Section 1419(d) of the National Agricultural Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3154(d)) is amended by striking ‘1995’ and inserting ‘2002’.

SEC. 810. POLICY RESEARCH CENTERS.

    The National Agricultural Research, Extension, and Teaching Policy Act of 1977 (as amended by section 809) is further amended by inserting after section 1418 (7 U.S.C. 3153) the following:

‘SEC. 1419. POLICY RESEARCH CENTERS.

    ‘(a) IN GENERAL- Consistent with this section, the Secretary may make grants, competitive grants, and special research grants to, and enter into cooperative agreements and other contracting instruments with, policy research centers to conduct research and education programs that are objective, operationally independent, and external to the Federal Government and that concern the effect of public policies on--

      ‘(1) the farm and agricultural sectors;

      ‘(2) the environment;

      ‘(3) rural families, households and economies; and

      ‘(4) consumers, food, and nutrition.

    ‘(b) ELIGIBLE RECIPIENTS- Except to the extent otherwise prohibited by law, State agricultural experiment stations, colleges and universities, other research institutions and organizations, private organizations, corporations, and individuals shall be eligible to apply for and receive funding under subsection (a).

    ‘(c) ACTIVITIES- Under this section, funding may be provided for disciplinary and interdisciplinary research and education concerning activities consistent with this section, including activities that--

      ‘(1) quantify the implications of public policies and regulations;

      ‘(2) develop theoretical and research methods;

      ‘(3) collect and analyze data for policymakers, analysts, and individuals; and

      ‘(4) develop programs to train analysts.

    ‘(d) AUTHORIZATION OF APPROPRIATIONS- There are authorized to be appropriated such sums as are necessary to carry out this section for fiscal years 1996 through 2002.’.

SEC. 811. HUMAN NUTRITION INTERVENTION AND HEALTH PROMOTION RESEARCH PROGRAM.

    Section 1424 of the National Agricultural Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3174) is amended to read as follows:

‘SEC. 1424. HUMAN NUTRITION INTERVENTION AND HEALTH PROMOTION RESEARCH PROGRAM.

    ‘(a) AUTHORITY OF SECRETARY-

      ‘(1) IN GENERAL- The Secretary may establish, and award grants for projects for, a multi-year research initiative on human nutrition intervention and health promotion.

      ‘(2) EMPHASIS OF INITIATIVE- In administering human nutrition research projects under this section, the Secretary shall give specific emphasis to--

        ‘(A) coordinated longitudinal research assessments of nutritional status; and

        ‘(B) the implementation of unified, innovative intervention strategies;

      to identify and solve problems of nutritional inadequacy and contribute to the maintenance of health, well-being, performance, and productivity of individuals, thereby reducing the need of the individuals to use the health care system and social programs of the United States.

    ‘(b) ADMINISTRATION OF FUNDS- The Administrator of the Agricultural Research Service shall administer funds made available to carry out this section to ensure a coordinated approach to health and nutrition research efforts.

    ‘(c) AUTHORIZATION OF APPROPRIATIONS- There are authorized to be appropriated such sums as are necessary to carry out this section for fiscal years 1996 through 2002.’.

SEC. 812. FOOD AND NUTRITION EDUCATION PROGRAM.

    Section 1425(c)(3) of the National Agricultural Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3175(c)(3)) is amended by striking ‘fiscal year 1995’ and inserting ‘each of fiscal years 1996 through 2002’.

SEC. 813. PURPOSES AND FINDINGS RELATING TO ANIMAL HEALTH AND DISEASE RESEARCH.

    Section 1429 of the National Agricultural Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3191) is amended to read as follows:

‘SEC. 1429. PURPOSES AND FINDINGS RELATING TO ANIMAL HEALTH AND DISEASE RESEARCH.

    ‘(a) PURPOSES- The purposes of this subtitle are to--

      ‘(1) promote the general welfare through the improved health and productivity of domestic livestock, poultry, aquatic animals, and other income-producing animals that are essential to the food supply of the United States and the welfare of producers and consumers of animal products;

      ‘(2) improve the health of horses;

      ‘(3) facilitate the effective treatment of, and, to the extent possible, prevent animal and poultry diseases in both domesticated and wild animals that, if not controlled, would be disastrous to the United States livestock and poultry industries and endanger the food supply of the United States;

      ‘(4) improve methods for the control of organisms and residues in food products of animal origin that could endanger the human food supply;

      ‘(5) improve the housing and management of animals to improve the well-being of livestock production species;

      ‘(6) minimize livestock and poultry losses due to transportation and handling;

      ‘(7) protect human health through control of animal diseases transmissible to humans;

      ‘(8) improve methods of controlling the births of predators and other animals; and

      ‘(9) otherwise promote the general welfare through expanded programs of research and extension to improve animal health.

    ‘(b) FINDINGS- Congress finds that--

      ‘(1) the total animal health and disease research and extension efforts of State colleges and universities and of the Federal Government would be more effective if there were close coordination between the efforts; and

      ‘(2) colleges and universities having accredited schools or colleges of veterinary medicine and State agricultural experiment stations that conduct animal health and disease research are especially vital in training research workers in animal health and related disciplines.’.

SEC. 814. ANIMAL HEALTH SCIENCE RESEARCH ADVISORY BOARD.

    Section 1432 of the National Agricultural Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3194) is repealed.

SEC. 815. ANIMAL HEALTH AND DISEASE CONTINUING RESEARCH.

    Section 1433 of the National Agricultural Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3195) is amended--

      (1) in the first sentence of subsection (a), by striking ‘1995’ and inserting ‘2002’;

      (2) in subsection (b)(2)--

        (A) by striking ‘domestic livestock and poultry’ each place it appears and inserting ‘domestic livestock, poultry, and commercial aquaculture species’; and

        (B) in the second sentence, by striking ‘horses, and poultry’ and inserting ‘horses, poultry, and commercial aquaculture species’;

      (3) in subsection (d), by striking ‘domestic livestock and poultry’ and inserting ‘domestic livestock, poultry, and commercial aquaculture species’; and

      (4) in subsection (f), by striking ‘domestic livestock and poultry’ and inserting ‘domestic livestock, poultry, and commercial aquaculture species’.

SEC. 816. ANIMAL HEALTH AND DISEASE NATIONAL OR REGIONAL RESEARCH.

    Section 1434 of the National Agricultural Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3196) is amended--

      (1) in subsection (a)--

        (A) by inserting ‘or national or regional problems relating to pre-harvest, on-farm food safety, or animal well-being,’ after ‘problems,’; and

        (B) by striking ‘1995’ and inserting ‘2002’;

      (2) in subsection (b), by striking ‘eligible institutions’ and inserting ‘State agricultural experiment stations, colleges and universities, other research institutions and organizations, Federal agencies, private organizations or corporations, and individuals’;

      (3) in subsection (c)--

        (A) in the first sentence, by inserting ‘, food safety, and animal well-being’ after ‘animal health and disease’; and

        (B) in the fourth sentence--

          (i) by redesignating paragraphs (2) and (3) as paragraphs (4) and (5), respectively; and

          (ii) by inserting after paragraph (1) the following:

      ‘(2) any food safety problem that has a significant pre-harvest (on-farm) component and is recognized as posing a significant health hazard to the consuming public;

      ‘(3) issues of animal well-being related to production methods that will improve the housing and management of animals to improve the well-being of livestock production species;’;

      (4) in the first sentence of subsection (d), by striking ‘to eligible institutions’; and

      (5) by adding at the end the following:

    ‘(f) APPLICABILITY OF FEDERAL ADVISORY COMMITTEE ACT- The Federal Advisory Committee Act (5 U.S.C. App.) and title XVIII of the Food and Agriculture Act of 1977 (7 U.S.C. 2281 et seq.) shall not apply to a panel or board created solely for the purpose of reviewing applications or proposals submitted under this subtitle.’.

SEC. 817. RESIDENT INSTRUCTION PROGRAM AT 1890 LAND-GRANT COLLEGES.

    Section 1446 of the National Agricultural Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3222a) is repealed.

SEC. 818. GRANT PROGRAM TO UPGRADE AGRICULTURAL AND FOOD SCIENCES FACILITIES AT 1890 LAND-GRANT COLLEGES.

    Section 1447(b) of the National Agricultural Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3222b(b)) is amended by striking ‘$8,000,000 for each of the fiscal years 1991 through 1995’ and inserting ‘$15,000,000 for each of fiscal years 1996 through 2002’.

SEC. 819. NATIONAL RESEARCH AND TRAINING CENTENNIAL CENTERS AUTHORIZATION.

    Section 1448 of the National Agricultural Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3222c) is amended--

      (1) in subsection (a)(1), by inserting ‘, or fiscal years 1996 through 2002,’ after ‘1995’; and

      (2) in subsection (f), by striking ‘1995’ and inserting ‘2002’.

SEC. 820. GRANTS TO STATES FOR INTERNATIONAL TRADE DEVELOPMENT CENTERS.

    Section 1458A of the National Agricultural Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3292) is repealed.

SEC. 821. AGRICULTURAL RESEARCH PROGRAMS.

    Section 1463 of the National Agricultural Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3311) is amended by striking ‘1995’ each place it appears and inserting ‘2002’.

SEC. 822. EXTENSION EDUCATION.

    Section 1464 of the National Agricultural Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3312) is amended by striking ‘fiscal year 1995’ and inserting ‘each of fiscal years 1995 through 2002’.

SEC. 823. SUPPLEMENTAL AND ALTERNATIVE CROPS RESEARCH.

    Section 1473D of the National Agricultural Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3319d) is amended--

      (1) in subsection (a)--

        (A) by striking ‘1995’ and inserting ‘2002’; and

        (B) by striking ‘and pilot’;

      (2) in subsection (c)--

        (A) in paragraph (2)--

          (i) in subparagraph (B), by striking ‘at pilot sites’ through ‘the area’; and

          (ii) in subparagraph (D)--

            (I) by striking ‘near such pilot sites’; and

            (II) by striking ‘successful pilot program’ and inserting ‘successful program’;

        (B) in paragraph (3)--

          (i) by striking ‘pilot’;

          (ii) in subparagraph (C), by striking ‘and’ at the end;

          (iii) in subparagraph (D), by striking the period at the end and inserting a semicolon; and

        (iv) by adding at the end the following:

      ‘(E) to conduct fundamental and applied research related to the development of new commercial products derived from natural plant material for industrial, medical, and agricultural applications; and

      ‘(F) to participate with colleges and universities, other Federal agencies, and private sector entities in conducting research described in subparagraph (E).’

SEC. 824. AQUACULTURE ASSISTANCE PROGRAMS.

    (a) REPORTS- Section 1475 of the National Agricultural Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3322) is amended--

      (1) by striking subsection (e); and

      (2) by redesignating subsections (f) and (g) as subsections (e) and (f), respectively.

    (b) AQUACULTURE RESEARCH FACILITIES- Section 1476(b) of the National Agricultural Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3323(b)) is amended by striking ‘1995’ and inserting ‘2002’.

    (c) RESEARCH AND EXTENSION- Section 1477 of the National Agricultural Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3324) is amended by striking ‘1995’ and inserting ‘2002’.

SEC. 825. RANGELAND RESEARCH.

    (a) REPORTS- Section 1481 of the National Agricultural Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3334) is repealed.

    (b) ADVISORY BOARD- Section 1482 of the National Agricultural Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3335) is repealed.

    (c) AUTHORIZATION OF APPROPRIATIONS- Section 1483(a) of the National Agricultural Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3336(a)) is amended by striking ‘1995’ and inserting ‘2002’.

SEC. 826. TECHNICAL AMENDMENTS.

    The table of contents of the Food and Agriculture Act of 1977 (Public Law 95-113; 91 Stat. 913) is amended--

      (1) by striking the item relating to section 1402 and inserting the following:

      ‘Sec. 1402. Purposes of agricultural research, extension, and education.’;

      (2) by striking the items relating to sections 1406, 1407, 1408A, 1432, 1446, 1458A, 1481, and 1482;

      (3) by striking the item relating to section 1408 and inserting the following:

      ‘Sec. 1408. National Agricultural Research, Extension, Education, and Economics Advisory Board.’;

      (4) by striking the item relating to section 1412 and inserting the following:

      ‘Sec. 1412. Support for the Advisory Board.’;

      (5) by adding at the end of the items relating to subtitle B of title XIV the following:

      ‘Sec. 1413A. Accountability.

      ‘Sec. 1413B. Imminent or emerging threats to food safety and animal and plant health.

      ‘Sec. 1413C. Federal Advisory Committee Act exemption for competitive research, extension, and education programs.’;

      (6) by striking the item relating to section 1419 and inserting the following:

      ‘Sec. 1419. Policy research centers.’;

      (7) by striking the item relating to section 1424 and inserting the following:

      ‘Sec. 1424. Human nutrition intervention and health promotion research program.’;

      and

      (8) by striking the item relating to section 1429 and inserting the following:

      ‘Sec. 1429. Purposes and findings relating to animal health and disease research.’.

Subtitle B--Amendments to Food, Agriculture, Conservation, and Trade Act of 1990

SEC. 831. WATER QUALITY RESEARCH, EDUCATION, AND COORDINATION.

    (a) IN GENERAL- Subtitle G of title XIV of the Food, Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 5501 et seq.) is repealed.

    (b) CONFORMING AMENDMENTS-

      (1) Section 1627(a)(3) of the Food, Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 5821(a)(3)) is amended by striking ‘, subtitle G of title XIV,’.

      (2) Section 1628 of the Food, Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 5831) is amended by striking ‘, subtitle G of title XIV,’ each place it appears in subsections (a) and (d).

      (3) Section 1629 of the Food, Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 5832) is amended by striking ‘, subtitle G of title XIV,’ each place it appears in subsections (f) and (g)(11).

SEC. 832. EDUCATION PROGRAM REGARDING HANDLING OF AGRICULTURAL CHEMICALS AND AGRICULTURAL CHEMICAL CONTAINERS.

    (a) IN GENERAL- Section 1499A of the Food, Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 3125c) is repealed.

    (b) CONFORMING AMENDMENT- Section 1499(b) of the Food, Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 5506(b)) is amended by striking ‘and section 1499A’.

SEC. 833. PROGRAM ADMINISTRATION.

    (a) IN GENERAL- Section 1622 of the Food, Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 5812) is amended--

      (1) by striking subsections (b), (c), and (d); and

      (2) by redesignating subsection (e) as subsection (b).

    (b) CONFORMING AMENDMENTS-

      (1) Section 1619(b) of the Food, Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 5801(b)) is amended--

        (A) by striking paragraph (7); and

        (B) by redesignating paragraphs (8), (9), and (10) as paragraphs (7), (8), and (9), respectively.

      (2) Section 1621(c) of the Food, Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 5811(c)) is amended--

        (A) in paragraph (1)--

          (i) by striking subparagraph (A); and

          (ii) by redesignating subparagraphs (B) through (E) as subparagraphs (A) through (D), respectively; and

        (B) in paragraph (2)--

          (i) by striking subparagraph (A); and

          (ii) by redesignating subparagraphs (B) through (F) as subparagraphs (A) through (E), respectively.

      (3) Section 1622 of the Food, Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 5812) (as amended by subsection (a)) is further amended--

        (A) in subsection (a)--

          (i) by striking paragraph (2);

          (ii) in paragraph (3), by striking ‘subsection (e)’ and inserting ‘subsection (b)’; and

          (iii) by redesignating paragraphs (3) and (4) as paragraphs (2) and (3), respectively; and

        (B) in subsection (b)(2)--

          (i) by striking subparagraph (A); and

          (ii) by redesignating subparagraphs (B) through (F) as subparagraphs (A) through (E), respectively.

      (4) Section 1628(b) of the Food, Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 5831(b)) is amended by striking ‘Advisory Council, the Soil Conservation Service,’ and inserting ‘Natural Resources Conservation Service’.

SEC. 834. NATIONAL GENETICS RESOURCES PROGRAM.

    (a) FUNCTIONS- Section 1632(d) of the Food, Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 5841(d)) is amended by striking paragraph (4) and inserting the following:

      ‘(4) unless otherwise prohibited by law, have the right to make available on request, without charge and without regard to the country from which the request originates, the genetic material that the program assembles;’.

    (b) AUTHORIZATION OF APPROPRIATIONS- Section 1635(b) of the Food, Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 5844(b)) is amended by striking ‘1995’ and inserting ‘2002’.

SEC. 835. NATIONAL AGRICULTURAL WEATHER INFORMATION SYSTEM.

    Section 1641(c) of the Food, Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 5855(c)) is amended by striking ‘1995’ and inserting ‘2002’.

SEC. 836. RESEARCH REGARDING PRODUCTION, PREPARATION, PROCESSING, HANDLING, AND STORAGE OF AGRICULTURAL PRODUCTS.

    Subtitle E of title XVI of the Food, Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 5871 et seq.) is repealed.

SEC. 837. PLANT AND ANIMAL PEST AND DISEASE CONTROL PROGRAM.

    (a) IN GENERAL- Subtitle F of title XVI of the Food, Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 5881) is repealed.

    (b) CONFORMING AMENDMENTS-

      (1) Section 28(b)(2)(A) of the Federal Insecticide, Fungicide, and Rodenticide Act (7 U.S.C. 136w-3(b)(2)(A)) is amended by striking ‘and the information required by section 1651 of the Food, Agriculture, Conservation, and Trade Act of 1990’.

      (2) Section 1627(a)(3) of the Food, Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 5821(a)(3)) is amended by striking ‘and section 1650’.

      (3) Section 1628 of the Food, Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 5831) is amended by striking ‘section 1650,’ each place it appears in subsections (a) and (d).

      (4) Section 1629 of the Food, Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 5832) is amended by striking ‘section 1650,’ each place it appears in subsections (f) and (g)(11).

SEC. 838. LIVESTOCK PRODUCT SAFETY AND INSPECTION PROGRAM.

    Section 1670(e) of the Food, Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 5923(e)) is amended by striking ‘1995’ and inserting ‘2002’.

SEC. 839. PLANT GENOME MAPPING PROGRAM.

    Section 1671 of the Food, Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 5924) is repealed.

SEC. 840. SPECIALIZED RESEARCH PROGRAMS.

    Section 1672 of the Food, Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 5925) is repealed.

SEC. 841. AGRICULTURAL TELECOMMUNICATIONS PROGRAM.

    Section 1673(h) of the Food, Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 5926(h)) is amended by striking ‘1995’ and inserting ‘2002’.

SEC. 842. NATIONAL CENTERS FOR AGRICULTURAL PRODUCT QUALITY RESEARCH.

    Section 1675(g)(1) of the Food, Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 5928(g)(1)) is amended by striking ‘1995’ and inserting ‘2002’.

SEC. 843. TURKEY RESEARCH CENTER AUTHORIZATION.

    Section 1676 of the Food, Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 5929) is repealed.

SEC. 844. SPECIAL GRANT TO STUDY CONSTRAINTS ON AGRICULTURAL TRADE.

    Section 1678 of the Food, Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 5931) is repealed.

SEC. 845. PILOT PROJECT TO COORDINATE FOOD AND NUTRITION EDUCATION PROGRAMS.

    Section 1679 of the Food, Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 5932) is repealed.

SEC. 846. ASSISTIVE TECHNOLOGY PROGRAM FOR FARMERS WITH DISABILITIES.

    Section 1680 of the Food, Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 5933) is amended--

      (1) in subsection (a)(6)(B), by striking ‘1996’ and inserting ‘2002’; and

      (2) in subsection (b)(2), by striking ‘1996’ and inserting ‘2002’.

SEC. 847. DEMONSTRATION PROJECTS.

    Section 2348 of the Food, Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 2662a) is repealed.

SEC. 848. NATIONAL RURAL INFORMATION CENTER CLEARINGHOUSE.

    Section 2381(e) of the Food, Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 3125b(e)) is amended by striking ‘1995’ and inserting ‘2002’.

SEC. 849. GLOBAL CLIMATE CHANGE.

    (a) TECHNICAL ADVISORY COMMITTEE- Section 2404 of the Food, Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 6703) is repealed.

    (b) AUTHORIZATION OF APPROPRIATIONS- Section 2412 of the Food, Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 6710) is amended by striking ‘1996’ and inserting ‘2002’.

SEC. 850. TECHNICAL AMENDMENTS.

    The table of contents of the Food, Agriculture, Conservation, and Trade Act of 1990 (Public Law 101-624; 104 Stat. 3359) is amended by striking the items relating to subtitle G of title XIV, section 1499A, subtitles E and F of title XVI, and sections 1671, 1672, 1676, 1678, 1679, 2348, and 2404.

Subtitle C--Miscellaneous Research Provisions

SEC. 861. CRITICAL AGRICULTURAL MATERIALS RESEARCH.

    (a) IN GENERAL- Section 4 of the Critical Agricultural Materials Act (7 U.S.C. 178b) is amended--

      (1) by striking subsection (g); and

      (2) by redesignating subsection (h) as subsection (g).

    (b) AUTHORIZATION OF APPROPRIATIONS- Section 16(a) of the Critical Agricultural Materials Act (7 U.S.C. 178n(a)) is amended by striking ‘1995’ and inserting ‘2002’.

SEC. 862. 1994 INSTITUTIONS.

    (a) LAND-GRANT STATUS- The first sentence of section 533(b) of the Equity in Educational Land-Grant Status Act of 1994 (Public Law 103-382; 7 U.S.C. 301 note) is amended by striking ‘2000’ and inserting ‘2002’.

    (b) INSTITUTIONAL CAPACITY BUILDING GRANTS- Section 535 of the Equity in Educational Land-Grant Status Act of 1994 (Public Law 103-382; 7 U.S.C. 301 note) is amended by striking ‘2000’ each place it appears in subsections (b)(1) and (c) and inserting ‘2002’.

SEC. 863. SMITH-LEVER ACT FUNDING FOR 1890 LAND-GRANT COLLEGES, INCLUDING TUSKEGEE UNIVERSITY AND THE DISTRICT OF COLUMBIA.

    (a) ELIGIBILITY FOR FUNDS- Section 3(d) of the Act of May 8, 1914 (commonly known as the ‘Smith-Lever Act’) (38 Stat. 373, chapter 79; 7 U.S.C. 343(d)), is amended by adding at the end the following: ‘A college or university eligible to receive funds under the Act of August 30, 1890 (26 Stat. 417, chapter 841; 7 U.S.C. 321 et seq.), including Tuskegee University, or section 208 of the District of Columbia Public Postsecondary Education Reorganization Act (Public Law 93-471; 88 Stat. 1428) may apply for and receive directly from the Secretary of Agriculture--

      ‘(1) amounts made available under this subsection after September 30, 1995, to carry out programs or initiatives for which no funds were made available under this subsection for fiscal year 1995, or any previous fiscal year, as determined by the Secretary; and

      ‘(2) amounts made available after September 30, 1995, to carry out programs or initiatives funded under this subsection prior to that date that are in excess of the highest amount made available for the programs or initiatives under this subsection for fiscal year 1995, or any previous fiscal year, as determined by the Secretary.’.

    (b) CONFORMING AMENDMENTS-

      (1) The third sentence of section 1444(a) of the National Agricultural Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3221(a)) is amended by inserting before the period at the end the following: ‘, except that for the purpose of this calculation, the total appropriations shall not include amounts made available after September 30, 1995, under section 3(d) of the Act of May 8, 1914 (commonly known as the ‘Smith-Lever Act’) (38 Stat. 373, chapter 79; 7 U.S.C. 343(d)), to carry out programs or initiatives for which no funds were made available under section 3(d) of the Act for fiscal year 1995, or any previous fiscal year, as determined by the Secretary, and shall not include amounts made available after September 30, 1995, to carry out programs or initiatives funded under section 3(d) of the Act prior to that date that are in excess of the highest amount made available for the programs or initiatives for fiscal year 1995, or any previous fiscal year, as determined by the Secretary.’.

      (2) Section 208(c) of the District of Columbia Public Postsecondary Education Reorganization Act (Public Law 93-471; 88 Stat. 1428) is amended by adding at the end the following: ‘Funds appropriated under this subsection shall be in addition to any amounts provided to the District of Columbia from--

      ‘(1) amounts made available after September 30, 1995, under section 3(d) of the Act to carry out programs or initiatives for which no funds were made available under section 3(d) of the Act for fiscal year 1995, or any previous fiscal year, as determined by the Secretary of Agriculture; and

      ‘(2) amounts made available after September 30, 1995, to carry out programs or initiatives funded under section 3(d) of the Act prior to the date that are in excess of the highest amount made available for the programs or initiatives for fiscal year 1995, or any previous fiscal year, as determined by the Secretary of Agriculture.’.

SEC. 864. COMMITTEE OF NINE.

    Section 3(c)(3) of the Act of March 2, 1887 (Chapter 314; 7 U.S.C. 361c(c)(3)) is amended by striking from ‘, and shall be used’ through the end of the paragraph and inserting a period.

SEC. 865. AGRICULTURAL RESEARCH FACILITIES.

    (a) IN GENERAL-

      (1) RESEARCH FACILITIES- The Research Facilities Act (7 U.S.C. 390 et seq.) is amended to read as follows:

‘SECTION 1. SHORT TITLE.

    ‘This Act may be cited as the ‘Research Facilities Act’.

‘SEC. 2. DEFINITIONS.

    ‘In this Act:

      ‘(1) AGRICULTURAL RESEARCH FACILITY- The term ‘agricultural research facility’ means a proposed facility for research in food and agricultural sciences for which Federal funds are requested by a college, university, or nonprofit institution to assist in the construction, alteration, acquisition, modernization, renovation, or remodeling of the facility.

      ‘(2) FOOD AND AGRICULTURAL SCIENCES- The term ‘food and agricultural sciences’ means--

        ‘(A) agriculture, including soil and water conservation and use, the use of organic materials to improve soil tilth and fertility, plant and animal production and protection, and plant and animal health;

        ‘(B) the processing, distributing, marketing, and utilization of food and agricultural products;

        ‘(C) forestry, including range management, production of forest and range products. multiple use of forest and rangelands, and urban forestry;

        ‘(D) aquaculture (as defined in section 1404(3) of the National Agricultural Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3103(3));

        ‘(E) human nutrition;

        ‘(F) production inputs, such as energy, to improve productivity; and

        ‘(G) germ plasm collection and preservation.

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

‘SEC. 3. REVIEW PROCESS.

    ‘(a) SUBMISSION TO SECRETARY- Each proposal for an agricultural research facility shall be submitted to the Secretary for review. The Secretary shall review the proposals in the order in which the proposals are received.

    ‘(b) APPLICATION PROCESS- In consultation with the Committee on Appropriations of the Senate and Committee on Appropriations of the House of Representatives, the Secretary shall establish an application process for the submission of proposals for agricultural research facilities.

    ‘(c) CRITERIA FOR APPROVAL-

      ‘(1) DETERMINATION BY SECRETARY- With respect to each proposal for an agricultural research facility submitted under subsection (a), the Secretary shall determine whether the proposal meets the criteria set forth in paragraph (2).

      ‘(2) CRITERIA- A proposal for an agricultural research facility shall meet the following criteria:

        ‘(A) NON-FEDERAL SHARE- The proposal shall certify the availability of at least a 50 percent non-Federal share of the cost of the facility. The non-Federal share shall be paid in cash and may include funding from private sources or from units of State or local government.

        ‘(B) NONDUPLICATION OF FACILITIES- The proposal shall demonstrate how the agricultural research facility would be complementary to, and not duplicative of, facilities of colleges, universities, and nonprofit institutions, and facilities of the Agricultural Research Service, within the State and region.

        ‘(C) NATIONAL RESEARCH PRIORITIES- The proposal shall demonstrate how the agricultural research facility would serve--

          ‘(i) 1 or more of the national research policies and priorities set forth in section 1402 of the National Agricultural Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3101); and

          ‘(ii) regional needs.

        ‘(D) LONG-TERM SUPPORT- The proposal shall demonstrate that the recipient college, university, or nonprofit institution has the ability and commitment to support the long-term, ongoing operating costs of--

          ‘(i) the agricultural research facility after the facility is completed; and

          ‘(ii) each program to be based at the facility.

        ‘(E) STRATEGIC PLAN- After the development of the strategic plan required by section 4, the proposal shall demonstrate how the agricultural research facility reflects the strategic plan for Federal research facilities.

    ‘(d) EVALUATION OF PROPOSALS- Not later than 90 days after receiving a proposal under subsection (a), the Secretary shall--

      ‘(1) evaluate and assess the merits of the proposal, including the extent to which the proposal meets the criteria set forth in subsection (c); and

      ‘(2) report to the Committee on Appropriations of the Senate and Committee on Appropriations of the House of Representatives on the results of the evaluation and assessment.

‘SEC. 4. STRATEGIC PLAN FOR FEDERAL RESEARCH FACILITIES.

    ‘(a) IN GENERAL- Not later than September 30, 1997, the Secretary shall develop a comprehensive plan for the development, construction, modernization, consolidation, and closure of federally supported agricultural research facilities.

    ‘(b) FACTORS- In developing the plan, the Secretary shall consider--

      ‘(1) the need to increase agricultural productivity and to enhance the competitiveness of the United States agriculture and food industry as set forth in section 1402 of the National Agricultural Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3101); and

      ‘(2) the findings of the National Academy of Sciences with respect to programmatic and scientific priorities relating to agriculture.

    ‘(c) IMPLEMENTATION- The plan shall be developed for implementation over the 10-fiscal year period beginning with fiscal year 1998.

‘SEC. 5. APPLICABILITY OF FEDERAL ADVISORY COMMITTEE ACT.

    ‘The Federal Advisory Committee Act (5 U.S.C. App) and title XVIII of the Food and Agriculture Act of 1977 (7 U.S.C. 2281 et. seq) shall not apply to a panel or board created solely for the purpose of reviewing applications or proposals submitted under this Act.

‘SEC. 6. AUTHORIZATION OF APPROPRIATIONS.

    ‘(a) IN GENERAL- Subject to subsection (b), there are authorized to be appropriated such sums as are necessary for fiscal years 1996 through 2002 for the study, plan, design, structure, and related costs of agricultural research facilities under this Act.

    ‘(b) ALLOWABLE ADMINISTRATIVE COSTS- Not more than 3 percent of the funds made available for any project for an agricultural research facility shall be available for administration of the project.’.

      (2) APPLICATION-

        (A) CURRENT PROJECTS- The amendment made by paragraph (1), other than section 4 of the Research Facilities Act (as amended by paragraph (1)), shall not apply to any project for an agricultural research facility for which funds have been made available for a feasibility study or for any phase of the project prior to October 1, 1995.

        (B) STRATEGIC PLAN- The strategic plan required by section 4 of the Act shall apply to all federally supported agricultural research facilities, including projects funded prior to the effective date of this title.

    (b) AUTHORIZATION OF APPROPRIATIONS FOR FEDERAL FACILITIES- Section 1431 of the National Agricultural Research, Extension, and Teaching Policy Act Amendments of 1985 (Public Law 99-198; 99 Stat. 1556) is amended--

      (1) in subsection (a)--

        (A) by striking ‘(a)’; and

        (B) by striking ‘1995’ and inserting ‘2002’; and

      (2) by striking subsection (b).

    (c) CONFORMING AMENDMENT- Section 1463(a) of the National Agricultural Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3311(a)) is amended by striking ‘1416,’.

SEC. 866. NATIONAL COMPETITIVE RESEARCH INITIATIVE.

    Subsection (b)(10) of the Competitive, Special, and Facilities Research Grant Act (7 U.S.C. 450i(b)(10)) is amended--

      (1) by striking ‘OF APPROPRIATIONS- There’ and inserting the following: ‘AND AVAILABILITY OF APPROPRIATIONS-

        ‘(A) IN GENERAL- There’;

      (2) by striking ‘fiscal year 1995’ and inserting ‘each of fiscal years 1995 through 2002’;

      (3) by striking ‘(A) not’ and inserting the following:

          ‘(i) not’;

      (4) by striking ‘(B) not’ and inserting the following:

          ‘(ii) not’;

      (5) in clause (ii) (as so designated), by striking ‘20 percent’ and inserting ‘40 percent’;

      (6) by striking ‘(C) not’ and inserting the following:

          ‘(iii) not’;

      (7) by striking ‘(D) not’ and inserting the following:

          ‘(iv) not’;

      (8) by striking ‘(E) not’ and inserting the following:

          ‘(v) not’; and

      (9) by adding at the end the following:

        ‘(B) AVAILABILITY- Funds made available under subparagraph (A) shall be available for obligation for a period of 2 years from the beginning of the fiscal year for which the funds are made available.’.

SEC. 867. COTTON CROP REPORTS.

    The Act of May 3, 1924 (43 Stat. 115, chapter 149; 7 U.S.C. 475), is repealed.

SEC. 868. RURAL DEVELOPMENT RESEARCH AND EDUCATION.

    Section 502 of the Rural Development Act of 1972 (7 U.S.C. 2662) is amended--

      (1) in subsection (a), by inserting after the first sentence the following: ‘The rural development extension programs shall also promote coordinated and integrated rural community initiatives that advance and empower capacity building through leadership development, entrepreneurship, business development and management training and strategic planning to increase jobs, income, and quality of life in rural communities.’;

      (2) by striking subsections (g) and (j); and

      (3) by redesignating subsections (h) and (i) as subsections (g) and (h) respectively.

SEC. 869. HUMAN NUTRITION RESEARCH.

    Section 1452 of the National Agricultural Research, Extension, and Teaching Policy Act Amendments of 1985 (Public Law 99-198; 7 U.S.C. 3173 note) is repealed.

SEC. 870. DAIRY GOAT RESEARCH PROGRAM.

    Section 1432 of the National Agricultural Research, Extension, and Teaching Policy Act Amendments of 1981 (Public Law 97-98; 7 U.S.C. 3222 note) is amended--

      (1) in subsection (a), by striking ‘(a)’; and

      (2) by striking subsection (b).

SEC. 871. GRANTS TO UPGRADE 1890 LAND-GRANT COLLEGE EXTENSION FACILITIES.

    (a) IN GENERAL- Section 1416 of the Food Security Act of 1985 (7 U.S.C. 3224) is repealed.

    (b) TECHNICAL AMENDMENT- The table of contents of the Food Security Act of 1985 (Public Law 99-198; 99 Stat. 1354) is amended by striking the item relating to section 1416.

SEC. 872. STUTTGART NATIONAL AQUACULTURE RESEARCH CENTER.

    (a) TRANSFER OF FUNCTIONS TO THE SECRETARY OF AGRICULTURE-

      (1) TITLE OF PUBLIC LAW 85-342- The title of Public Law 85-342 (16 U.S.C. 778 et seq.) is amended by striking ‘Secretary of the Interior’ and inserting ‘Secretary of Agriculture’.

      (2) AUTHORIZATION- The first section of Public Law 85-342 (16 U.S.C. 778) is amended--

        (A) by striking ‘Secretary of the Interior’ and all that follows through ‘directed to’ and inserting ‘Secretary of Agriculture shall’;

        (B) by striking ‘station and stations’ and inserting ‘1 or more centers’; and

        (C) in paragraph (5), by striking ‘Department of Agriculture’ and inserting ‘Secretary of the Interior’.

      (3) AUTHORITY- Section 2 of Public Law 85-342 (16 U.S.C. 778a) is amended by striking ‘, the Secretary’ and all that follows through ‘authorized’ and inserting ‘, the Secretary of Agriculture is authorized’.

      (4) ASSISTANCE- Section 3 of Public Law 85-342 (16 U.S.C. 778b) is amended--

        (A) by striking ‘Secretary of the Interior’ and inserting ‘Secretary of Agriculture’; and

        (B) by striking ‘Department of Agriculture’ and inserting ‘Secretary of the Interior’.

    (b) TRANSFER OF FISH FARMING EXPERIMENTAL LABORATORY TO DEPARTMENT OF AGRICULTURE-

      (1) DESIGNATION OF STUTTGART NATIONAL AQUACULTURE RESEARCH CENTER-

        (A) IN GENERAL- The Fish Farming Experimental Laboratory in Stuttgart, Arkansas (including the facilities in Kelso, Arkansas), shall be known and designated as the ‘Stuttgart National Aquaculture Research Center’.

        (B) REFERENCES- Any reference in a law, map, regulation, document, paper, or other record of the United States to the laboratory referred to in subparagraph (A) shall be deemed to be a reference to the ‘Stuttgart National Aquaculture Research Center’.

      (2) TRANSFER OF LABORATORY TO THE DEPARTMENT OF AGRICULTURE- Subject to section 1531 of title 31, United States Code, not later than 90 days after the effective date of this title, there are transferred to the Department of Agriculture--

        (A) the personnel employed in connection with the laboratory referred to in paragraph (1);

        (B) the assets, liabilities, contracts, and real and personal property of the laboratory;

        (C) the records of the laboratory; and

        (D) the unexpended balance of appropriations, authorizations, allocations and other funds employed, held, arising from, available to, or to be made available in connection with the laboratory.

      (3) NONDUPLICATION- The research center referred to in paragraph (1)(A) shall be complementary to, and not duplicative of, facilities of colleges, universities, and nonprofit institutions, and facilities of the Agricultural Research Service, within the State and region, as determined by the Administrator of the Service.

SEC. 873. NATIONAL AQUACULTURE POLICY, PLANNING, AND DEVELOPMENT.

    (a) DEFINITIONS- Section 3 of the National Aquaculture Act of 1980 (16 U.S.C. 2802) is amended--

      (1) in paragraph (1), by striking ‘the propagation’ and all that follows through the period at the end and inserting the following: ‘the commercially controlled cultivation of aquatic plants, animals, and microorganisms, but does not include private for-profit ocean ranching of Pacific salmon in a State in which the ranching is prohibited by law.’;

      (2) in paragraph (3), by striking ‘or aquatic plant’ and inserting ‘aquatic plant, or microorganism’;

      (3) by redesignating paragraphs (7) through (9) as paragraphs (8) through (10), respectively; and

      (4) by inserting after paragraph (6) the following:

      ‘(7) The term ‘private aquaculture’ means the commercially controlled cultivation of aquatic plants, animals, and microorganisms other than cultivation carried out by the Federal Government, any State or local government, or an Indian tribe recognized by the Bureau of Indian Affairs.’.

    (b) NATIONAL AQUACULTURE DEVELOPMENT PLAN- Section 4 of the National Aquaculture Act of 1980 (16 U.S.C. 2803) is amended--

      (1) in subsection (c)--

        (A) in subparagraph (A), by adding ‘and’ at the end;

        (B) in subparagraph (B), by striking ‘; and’ and inserting a period; and

        (C) by striking subparagraph (C);

      (2) in the second sentence of subsection (d), by striking ‘Secretaries determine that’ and inserting ‘Secretary, in consultation with the Secretary of Commerce, the Secretary of the Interior, and the heads of such other agencies as the Secretary determines are appropriate, determines that’; and

      (3) in subsection (e), by striking ‘Secretaries’ and inserting ‘Secretary, in consultation with the Secretary of Commerce, the Secretary of the Interior, and the heads of such other agencies as the Secretary determines are appropriate,’.

    (c) FUNCTIONS AND POWERS OF SECRETARIES- Section 5(b)(3) of the National Aquaculture Act of 1980 (16 U.S.C. 2804(b)(3)) is amended by striking ‘Secretaries deem’ and inserting ‘Secretary, in consultation with the Secretary of Commerce, the Secretary of the Interior, and the heads of such other agencies as the Secretary determines are appropriate, consider’.

    (d) COORDINATION OF NATIONAL ACTIVITIES REGARDING AQUACULTURE- The first sentence of section 6(a) of the National Aquaculture Act of 1980 (16 U.S.C. 2805(a)) is amended by striking ‘(f)’ and inserting ‘(e)’.

    (e) NATIONAL POLICY FOR PRIVATE AQUACULTURE- The National Aquaculture Act of 1980 (16 U.S.C. 2801 et seq.) is amended--

      (1) by redesignating sections 7, 8, 9, 10, and 11 as sections 8, 9, 10, 11, and 12, respectively; and

      (2) by inserting after section 6 (16 U.S.C. 2805) the following:

‘SEC. 7. NATIONAL POLICY FOR PRIVATE AQUACULTURE.

    ‘(a) IN GENERAL- In consultation with the Secretary of Commerce and the Secretary of the Interior, the Secretary shall coordinate and implement a national policy for private aquaculture in accordance with this section. In developing the policy, the Secretary may consult with other agencies and organizations.

    ‘(b) DEPARTMENT OF AGRICULTURE AQUACULTURE PLAN-

      ‘(1) IN GENERAL- The Secretary shall develop and implement a Department of Agriculture Aquaculture Plan (referred to in this section as the ‘Department plan’) for a unified aquaculture program of the Department of Agriculture (referred to in this section as the ‘Department’) to support the development of private aquaculture.

      ‘(2) ELEMENTS OF DEPARTMENT PLAN- The Department plan shall address--

        ‘(A) programs of individual agencies of the Department related to aquaculture that are consistent with Department programs related to other areas of agriculture, including livestock, crops, products, and commodities under the jurisdiction of agencies of the Department;

        ‘(B) the treatment of cultivated aquatic animals as livestock and cultivated aquatic plants as agricultural crops; and

        ‘(C) means for effective coordination and implementation of aquaculture activities and programs within the Department, including individual agency commitments of personnel and resources.

    ‘(c) NATIONAL AQUACULTURE INFORMATION CENTER- In carrying out section 5, the Secretary may maintain and support a National Aquaculture Information Center at the National Agricultural Library as a repository for information on national and international aquaculture.

    ‘(d) TREATMENT OF AQUACULTURE- The Secretary shall treat--

      ‘(1) private aquaculture as agriculture; and

      ‘(2) commercially cultivated aquatic animals, plants, and microorganisms, and products of the animals, plants, and microorganisms, produced by private persons and transported or moved in standard commodity channels as agricultural livestock, crops, and commodities.

    ‘(e) PRIVATE AQUACULTURE POLICY COORDINATION, DEVELOPMENT, AND IMPLEMENTATION-

      ‘(1) RESPONSIBILITY- The Secretary shall have responsibility for coordinating, developing, and carrying out policies and programs for private aquaculture.

      ‘(2) DUTIES- The Secretary shall--

        ‘(A) coordinate all intradepartmental functions and activities relating to private aquaculture; and

        ‘(B) establish procedures for the coordination of functions, and consultation with, the coordinating group.

    ‘(f) LIAISON WITH DEPARTMENTS OF COMMERCE AND THE INTERIOR- The Secretary of Commerce and the Secretary of the Interior shall each designate an officer or employee of the Department of the Secretary to be the liaison of the Department to the Secretary of Agriculture.’.

    (f) AUTHORIZATION OF APPROPRIATIONS- Section 11 of the National Aquaculture Act of 1980 (as redesignated by subsection (e)(1)) is amended by striking ‘the fiscal years 1991, 1992, and 1993’ each place it appears and inserting ‘fiscal years 1991 through 2002’.

SEC. 874. EXPANSION OF AUTHORITIES RELATED TO THE NATIONAL ARBORETUM.

    (a) SOLICITATION OF GIFTS, BENEFITS, AND DEVISES- The first sentence of section 5 of the Act of March 4, 1927 (89 Stat. 683; 20 U.S.C. 195), is amended by inserting ‘solicit,’ after ‘authorized to’.

    (b) CONCESSIONS, FEES, AND VOLUNTARY SERVICES- The Act of March 4, 1927 (44 Stat. 1422, chapter 505; 20 U.S.C. 191 et seq.), is amended by adding at the end the following:

‘SEC. 6. CONCESSIONS, FEES, AND VOLUNTARY SERVICES.

    ‘(a) IN GENERAL- Notwithstanding the Federal Property and Administrative Services Act of 1949 (40 U.S.C. 471 et seq.) and section 321 of the Act of June 30, 1932 (47 Stat. 412, chapter 314; 40 U.S.C. 303b), the Secretary of Agriculture, in furtherance of the mission of the National Arboretum, may--

      ‘(1) negotiate agreements granting concessions at the National Arboretum to nonprofit scientific or educational organizations the interests of which are complementary to the mission of the National Arboretum, except that the net proceeds of the organizations from the concessions shall be used exclusively for research and educational work for the benefit of the National Arboretum;

      ‘(2) provide by concession, on such terms as the Secretary of Agriculture considers appropriate and necessary, for commercial services for food, drink, and nursery sales, if an agreement for a permanent concession under this paragraph is negotiated with a qualified person submitting a proposal after due consideration of all proposals received after the Secretary of Agriculture provides reasonable public notice of the intent of the Secretary to enter into such an agreement;

      ‘(3) dispose of excess property, including excess plants and fish, in a manner designed to maximize revenue from any sale of the property, including by way of public auction, except that this paragraph shall not apply to the free dissemination of new varieties of seeds and germ plasm in accordance with section 520 of the Revised Statutes (commonly known as the ‘Department of Agriculture Organic Act of 1862’) (7 U.S.C. 2201);

      ‘(4) charge such fees as the Secretary of Agriculture considers reasonable for temporary use by individuals or groups of National Arboretum facilities and grounds for any purpose consistent with the mission of the National Arboretum;

      ‘(5) charge such fees as the Secretary of Agriculture considers reasonable for the use of the National Arboretum for commercial photography or cinematography;

      ‘(6) publish, in print and electronically and without regard to laws relating to printing by the Federal Government, informational brochures, books, and other publications concerning the National Arboretum or the collections of the Arboretum; and

      ‘(7) license use of the National Arboretum name and logo for public service or commercial uses.

    ‘(b) USE OF FUNDS- Any funds received or collected by the Secretary of Agriculture as a result of activities described in subsection (a) shall be retained in a special fund in the Treasury for the use and benefit of the National Arboretum as the Secretary of Agriculture considers appropriate.

    ‘(c) ACCEPTANCE OF VOLUNTARY SERVICES- The Secretary of Agriculture may accept the voluntary services of organizations described in subsection (a)(1), and the voluntary services of individuals (including employees of the National Arboretum), for the benefit of the National Arboretum.’.

SEC. 875. STUDY OF AGRICULTURAL RESEARCH SERVICE.

    (a) STUDY- The Secretary of Agriculture shall request the National Academy of Sciences to conduct a study of the role and mission of the Agricultural Research Service. The study shall--

      (1) evaluate the strength of science of the Service and the relevance of the science to national priorities;

      (2) examine how the work of the Service relates to the capacity of the United States agricultural research, education, and extension system overall; and

      (3) include recommendations, as appropriate.

    (b) REPORT- Not later than 18 months after the effective date of this title, the Secretary shall prepare a report that describes the results of the study conducted under subsection (a) and submit the report to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate.

    (c) FUNDING- The Secretary shall use to carry out this section not more than $500,000 of funds made available to the Agricultural Research Service for research.

SEC. 876. LABELING OF DOMESTIC AND IMPORTED LAMB AND MUTTON.

    Section 7 of the Federal Meat Inspection Act (21 U.S.C. 607) is amended by adding at the end the following:

    ‘(f) Lamb and Mutton-

      ‘(1) STANDARDS- The Secretary, consistent with United States international obligations, shall establish standards for the labeling of sheep carcasses, parts of carcasses, meat, and meat food products as ‘lamb’ or ‘mutton’.

      ‘(2) METHOD- The standards under paragraph (1) shall be based on the use of the break or spool joint method to differentiate lamb from mutton by the degree of calcification of bone to reflect maturity.’.

SEC. 877. SENSE OF SENATE.

    It is the sense of the Senate that the Department of Agriculture should continue to make methyl bromide alternative research and extension activities a high priority of the Department: Provided, That it is the sense of the Senate that the Department of Agriculture, the Environmental Protection Agency, producer and processor organizations, environmental organizations, and State agencies continue their dialogue on the risks and benefits of extending the 2001 phaseout deadline.

TITLE IX--AGRICULTURAL PROMOTION

Subtitle A--Popcorn

SEC. 901. SHORT TITLE.

    This subtitle may be cited as the ‘Popcorn Promotion, Research, and Consumer Information Act’.

SEC. 902. FINDINGS AND DECLARATION OF POLICY.

    (a) FINDINGS- Congress finds that--

      (1) popcorn is an important food that is a valuable part of the human diet;

      (2) the production and processing of popcorn plays a significant role in the economy of the United States in that popcorn is processed by several popcorn processors, distributed through wholesale and retail outlets, and consumed by millions of people throughout the United States and foreign countries;

      (3) popcorn must be of high quality, readily available, handled properly, and marketed efficiently to ensure that the benefits of popcorn are available to the people of the United States;

      (4) the maintenance and expansion of existing markets and uses and the development of new markets and uses for popcorn are vital to the welfare of processors and persons concerned with marketing, using, and producing popcorn for the market, as well as to the agricultural economy of the United States;

      (5) the cooperative development, financing, and implementation of a coordinated program of popcorn promotion, research, consumer information, and industry information is necessary to maintain and expand markets for popcorn; and

      (6) popcorn moves in interstate and foreign commerce, and popcorn that does not move in those channels of commerce directly burdens or affects interstate commerce in popcorn.

    (b) POLICY- It is the policy of Congress that it is in the public interest to authorize the establishment, through the exercise of the powers provided in this subtitle, of an orderly procedure for developing, financing (through adequate assessments on unpopped popcorn processed domestically), and carrying out an effective, continuous, and coordinated program of promotion, research, consumer information, and industry information designed to--

      (1) strengthen the position of the popcorn industry in the marketplace; and

      (2) maintain and expand domestic and foreign markets and uses for popcorn.

    (c) PURPOSES- The purposes of this subtitle are to--

      (1) maintain and expand the markets for all popcorn products in a manner that--

        (A) is not designed to maintain or expand any individual share of a producer or processor of the market;

        (B) does not compete with or replace individual advertising or promotion efforts designed to promote individual brand name or trade name popcorn products; and

        (C) authorizes and funds programs that result in government speech promoting government objectives; and

      (2) establish a nationally coordinated program for popcorn promotion, research, consumer information, and industry information.

    (d) STATUTORY CONSTRUCTION- This subtitle treats processors equitably. Nothing in this subtitle--

      (1) provides for the imposition of a trade barrier to the entry into the United States of imported popcorn for the domestic market; or

      (2) provides for the control of production or otherwise limits the right of any individual processor to produce popcorn.

SEC. 903. DEFINITIONS.

    In this subtitle (except as otherwise specifically provided):

      (1) BOARD- The term ‘Board’ means the Popcorn Board established under section 905(b).

      (2) COMMERCE- The term ‘commerce’ means interstate, foreign, or intrastate commerce.

      (3) CONSUMER INFORMATION- The term ‘consumer information’ means information and programs that will assist consumers and other persons in making evaluations and decisions regarding the purchase, preparation, and use of popcorn.

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

      (5) INDUSTRY INFORMATION- The term ‘industry information’ means information and programs that will lead to the development of--

        (A) new markets, new marketing strategies, or increased efficiency for the popcorn industry; or

        (B) activities to enhance the image of the popcorn industry.

      (6) MARKETING- The term ‘marketing’ means the sale or other disposition of unpopped popcorn for human consumption in a channel of commerce, but does not include a sale or disposition to or between processors.

      (7) ORDER- The term ‘order’ means an order issued under section 904.

      (8) PERSON- The term ‘person’ means an individual, group of individuals, partnership, corporation, association, or cooperative, or any other legal entity.

      (9) POPCORN- The term ‘popcorn’ means unpopped popcorn (Zea Mays L) that is--

        (A) commercially grown;

        (B) processed in the United States by shelling, cleaning, or drying; and

        (C) introduced into a channel of commerce.

      (10) PROCESS- The term ‘process’ means to shell, clean, dry, and prepare popcorn for the market, but does not include packaging popcorn for the market without also engaging in another activity described in this paragraph.

      (11) PROCESSOR- The term ‘processor’ means a person engaged in the preparation of unpopped popcorn for the market who owns or shares the ownership and risk of loss of the popcorn and who processes and distributes over 4,000,000 pounds of popcorn in the market per year.

      (12) PROMOTION- The term ‘promotion’ means an action, including paid advertising, to enhance the image or desirability of popcorn.

      (13) RESEARCH- The term ‘research’ means any type of study to advance the image, desirability, marketability, production, product development, quality, or nutritional value of popcorn.

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

      (15) STATE- The term ‘State’ means each of the 50 States and the District of Columbia.

      (16) UNITED STATES- The term ‘United States’ means all of the States.

SEC. 904. ISSUANCE OF ORDERS.

    (a) IN GENERAL- To effectuate the policy described in section 902(b), the Secretary, subject to subsection (b), shall issue 1 or more orders applicable to processors. An order shall be applicable to all popcorn production and marketing areas in the United States. Not more than 1 order shall be in effect under this subtitle at any 1 time.

    (b) PROCEDURE-

      (1) PROPOSAL OR REQUEST FOR ISSUANCE- The Secretary may propose the issuance of an order, or an association of processors or any other person that would be affected by an order may request the issuance of, and submit a proposal for, an order.

      (2) NOTICE AND COMMENT CONCERNING PROPOSED ORDER- Not later than 60 days after the receipt of a request and proposal for an order under paragraph (1), or at such time as the Secretary determines to propose an order, the Secretary shall publish a proposed order and give due notice and opportunity for public comment on the proposed order.

      (3) ISSUANCE OF ORDER- After notice and opportunity for public comment under paragraph (2), the Secretary shall issue an order, taking into consideration the comments received and including in the order such provisions as are necessary to ensure that the order conforms to this subtitle. The order shall be issued and become effective not later than 150 days after the date of publication of the proposed order.

    (c) AMENDMENTS- The Secretary, as appropriate, may amend an order. The provisions of this subtitle applicable to an order shall be applicable to any amendment to an order, except that an amendment to an order may not require a referendum to become effective.

SEC. 905. REQUIRED TERMS IN ORDERS.

    (a) IN GENERAL- An order shall contain the terms and conditions specified in this section.

    (b) ESTABLISHMENT AND MEMBERSHIP OF POPCORN BOARD-

      (1) IN GENERAL- The order shall provide for the establishment of, and appointment of members to, a Popcorn Board that shall consist of not fewer than 4 members and not more than 9 members.

      (2) NOMINATIONS- The members of the Board shall be processors appointed by the Secretary from nominations submitted by processors in a manner authorized by the Secretary, subject to paragraph (3). Not more than 1 member may be appointed to the Board from nominations submitted by any 1 processor.

      (3) GEOGRAPHICAL DIVERSITY- In making appointments, the Secretary shall take into account, to the extent practicable, the geographical distribution of popcorn production throughout the United States.

      (4) TERMS- The term of appointment of each member of the Board shall be 3 years, except that the members appointed to the initial Board shall serve, proportionately, for terms of 2, 3, and 4 years, as determined by the Secretary.

      (5) COMPENSATION AND EXPENSES- A member of the Board shall serve without compensation, but shall be reimbursed for the expenses of the member incurred in the performance of duties for the Board.

    (c) POWERS AND DUTIES OF BOARD- The order shall define the powers and duties of the Board, which shall include the power and duty--

      (1) to administer the order in accordance with the terms and provisions of the order;

      (2) to make regulations to effectuate the terms and provisions of the order;

      (3) to appoint members of the Board to serve on an executive committee;

      (4) to propose, receive, evaluate, and approve budgets, plans, and projects of promotion, research, consumer information, and industry information, and to contract with appropriate persons to implement the plans or projects;

      (5) to accept and receive voluntary contributions, gifts, and market promotion or similar funds;

      (6) to invest, pending disbursement under a plan or project, funds collected through assessments authorized under subsection (f), only in--

        (A) obligations of the United States or an agency of the United States;

        (B) general obligations of a State or a political subdivision of a State;

        (C) an interest-bearing account or certificate of deposit of a bank that is a member of the Federal Reserve System; or

        (D) obligations fully guaranteed as to principal and interest by the United States;

      (7) to receive, investigate, and report to the Secretary complaints of violations of the order; and

      (8) to recommend to the Secretary amendments to the order.

    (d) PLANS AND BUDGETS-

      (1) IN GENERAL- The order shall provide that the Board shall submit to the Secretary for approval any plan or project of promotion, research, consumer information, or industry information.

      (2) BUDGETS- The order shall require the Board to submit to the Secretary for approval budgets on a fiscal year basis of the anticipated expenses and disbursements of the Board in the implementation of the order, including projected costs of plans and projects of promotion, research, consumer information, and industry information.

    (e) CONTRACTS AND AGREEMENTS-

      (1) IN GENERAL- The order shall provide that the Board may enter into contracts or agreements for the implementation and carrying out of plans or projects of promotion, research, consumer information, or industry information, including contracts with a processor organization, and for the payment of the cost of the plans or projects with funds collected by the Board under the order.

      (2) REQUIREMENTS- A contract or agreement under paragraph (1) shall provide that--

        (A) the contracting party shall develop and submit to the Board a plan or project, together with a budget that shows the estimated costs to be incurred for the plan or project;

        (B) the plan or project shall become effective on the approval of the Secretary; and

        (C) the contracting party shall keep accurate records of each transaction of the party, account for funds received and expended, make periodic reports to the Board of activities conducted, and make such other reports as the Board or the Secretary may require.

      (3) PROCESSOR ORGANIZATIONS- The order shall provide that the Board may contract with processor organizations for any other services. The contract shall include provisions comparable to the provisions required by paragraph (2).

    (f) ASSESSMENTS-

      (1) PROCESSORS- The order shall provide that each processor marketing popcorn in the United States or for export shall, in the manner prescribed in the order, pay assessments and remit the assessments to the Board.

      (2) DIRECT MARKETERS- A processor that markets popcorn produced by the processor directly to consumers shall pay and remit the assessments on the popcorn directly to the Board in the manner prescribed in the order.

      (3) RATE-

        (A) IN GENERAL- The rate of assessment prescribed in the order shall be a rate established by the Board but not more than $.08 per hundredweight of popcorn.

        (B) ADJUSTMENT OF RATE- The order shall provide that the Board, with the approval of the Secretary, may raise or lower the rate of assessment annually up to a maximum of $.08 per hundredweight of popcorn.

      (4) USE OF ASSESSMENTS-

        (A) IN GENERAL- Subject to subparagraphs (B) and (C) and subsection (c)(5), the order shall provide that the assessments collected shall be used by the Board--

          (i) to pay expenses incurred in implementing and administering the order, with provision for a reasonable reserve; and

          (ii) to cover such administrative costs as are incurred by the Secretary, except that the administrative costs incurred by the Secretary (other than any legal expenses incurred to defend and enforce the order) that may be reimbursed by the Board may not exceed 15 percent of the projected annual revenues of the Board.

        (B) EXPENDITURES BASED ON SOURCE OF ASSESSMENTS- In implementing plans and projects of promotion, research, consumer information, and industry information, the Board shall expend funds on--

          (i) plans and projects for popcorn marketed in the United States or Canada in proportion to the amount of assessments collected on domestically marketed popcorn; and

          (ii) plans and projects for exported popcorn in proportion to the amount of assessments collected on exported popcorn.

        (C) NOTIFICATION- If the administrative costs incurred by the Secretary that are reimbursed by the Board exceed 10 percent of the projected annual revenues of the Board, the Secretary shall notify as soon as practicable the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate.

    (g) PROHIBITION ON USE OF FUNDS- The order shall prohibit any funds collected by the Board under the order from being used to influence government action or policy, other than the use of funds by the Board for the development and recommendation to the Secretary of amendments to the order.

    (h) BOOKS AND RECORDS OF THE BOARD- The order shall require the Board to--

      (1) maintain such books and records (which shall be available to the Secretary for inspection and audit) as the Secretary may prescribe;

      (2) prepare and submit to the Secretary, from time to time, such reports as the Secretary may prescribe; and

      (3) account for the receipt and disbursement of all funds entrusted to the Board.

    (i) BOOKS AND RECORDS OF PROCESSORS-

      (1) MAINTENANCE AND REPORTING OF INFORMATION- The order shall require that each processor of popcorn for the market shall--

        (A) maintain, and make available for inspection, such books and records as are required by the order; and

        (B) file reports at such time, in such manner, and having such content as is prescribed in the order.

      (2) USE OF INFORMATION- The Secretary shall authorize the use of information regarding processors that may be accumulated under a law or regulation other than this subtitle or a regulation issued under this subtitle. The information shall be made available to the Secretary as appropriate for the administration or enforcement of this subtitle, the order, or any regulation issued under this subtitle.

      (3) CONFIDENTIALITY-

        (A) IN GENERAL- Subject to subparagraphs (B), (C), and (D), all information obtained by the Secretary under paragraphs (1) and (2) shall be kept confidential by all officers, employees, and agents of the Board and the Department.

        (B) DISCLOSURE BY SECRETARY- Information referred to in subparagraph (A) may be disclosed if--

          (i) the Secretary considers the information relevant;

          (ii) the information is revealed in a suit or administrative hearing brought at the request of the Secretary, or to which the Secretary or any officer of the United States is a party; and

          (iii) the information relates to the order.

        (C) DISCLOSURE TO OTHER AGENCY OF FEDERAL GOVERNMENT-

          (i) IN GENERAL- No information obtained under the authority of this subtitle may be made available to another agency or officer of the Federal Government for any purpose other than the implementation of this subtitle and any investigatory or enforcement activity necessary for the implementation of this subtitle.

          (ii) PENALTY- A person who knowingly violates this subparagraph shall, on conviction, be subject to a fine of not more than $1,000 or to imprisonment for not more than 1 year, or both, and if an officer, employee, or agent of the Board or the Department, shall be removed from office or terminated from employment, as applicable.

        (D) GENERAL STATEMENTS- Nothing in this paragraph prohibits--

          (i) the issuance of general statements, based on the reports, of the number of persons subject to the order or statistical data collected from the reports, if the statements do not identify the information provided by any person; or

          (ii) the publication, by direction of the Secretary, of the name of a person violating the order, together with a statement of the particular provisions of the order violated by the person.

    (j) OTHER TERMS AND CONDITIONS- The order shall contain such terms and conditions, consistent with this subtitle, as are necessary to effectuate this subtitle, including regulations relating to the assessment of late payment charges.

SEC. 906. REFERENDA.

    (a) INITIAL REFERENDUM-

      (1) IN GENERAL- Within the 60-day period immediately preceding the effective date of an order, as provided in section 904(b)(3), the Secretary shall conduct a referendum among processors who, during a representative period as determined by the Secretary, have been engaged in processing, for the purpose of ascertaining whether the order shall go into effect.

      (2) APPROVAL OF ORDER- The order shall become effective, as provided in section 904(b), only if the Secretary determines that the order has been approved by not less than a majority of the processors voting in the referendum and if the majority processed more than 50 percent of the popcorn certified as having been processed, during the representative period, by the processors voting.

    (b) ADDITIONAL REFERENDA-

      (1) IN GENERAL- Not earlier than 3 years after the effective date of an order approved under subsection (a), on the request of the Board or a representative group of processors, as described in paragraph (2), the Secretary may conduct additional referenda to determine whether processors favor the termination or suspension of the order.

      (2) REPRESENTATIVE GROUP OF PROCESSORS- An additional referendum on an order shall be conducted if the referendum is requested by 30 percent or more of the number of processors who, during a representative period as determined by the Secretary, have been engaged in processing.

      (3) DISAPPROVAL OF ORDER- If the Secretary determines, in a referendum conducted under paragraph (1), that suspension or termination of the order is favored by at least 2/3 of the processors voting in the referendum, the Secretary shall--

        (A) suspend or terminate, as appropriate, collection of assessments under the order not later than 180 days after the date of determination; and

        (B) suspend or terminate the order, as appropriate, in an orderly manner as soon as practicable after the date of determination.

    (c) COSTS OF REFERENDUM- The Secretary shall be reimbursed from assessments collected by the Board for any expenses incurred by the Secretary in connection with the conduct of any referendum under this section.

    (d) METHOD OF CONDUCTING REFERENDUM- Subject to this section, a referendum conducted under this section shall be conducted in such manner as is determined by the Secretary.

    (e) CONFIDENTIALITY OF BALLOTS AND OTHER INFORMATION-

      (1) IN GENERAL- The ballots and other information or reports that reveal or tend to reveal the vote of any processor, or any business operation of a processor, shall be considered to be strictly confidential and shall not be disclosed.

      (2) PENALTY FOR VIOLATIONS- An officer or employee of the Department who knowingly violates paragraph (1) shall be subject to the penalties described in section 905(i)(3)(C)(ii).

SEC. 907. PETITION AND REVIEW.

    (a) PETITION-

      (1) IN GENERAL- A person subject to an order may file with the Secretary a petition--

        (A) stating that the order, a provision of the order, or an obligation imposed in connection with the order is not established in accordance with law; and

        (B) requesting a modification of the order or obligation or an exemption from the order or obligation.

      (2) STATUTE OF LIMITATIONS- A petition under paragraph (1) concerning an obligation may be filed not later than 2 years after the date of imposition of the obligation.

      (3) HEARINGS- The petitioner shall be given the opportunity for a hearing on a petition filed under paragraph (1), in accordance with regulations issued by the Secretary.

      (4) RULING- After a hearing under paragraph (3), the Secretary shall issue a ruling on the petition that is the subject of the hearing, which shall be final if the ruling is in accordance with applicable law.

    (b) REVIEW-

      (1) COMMENCEMENT OF ACTION- The district court of the United States for any district in which a person who is a petitioner under subsection (a) resides or carries on business shall have jurisdiction to review a ruling on the petition, if the person files a complaint not later than 20 days after the date of issuance of the ruling under subsection (a)(4).

      (2) PROCESS- Service of process in a proceeding under paragraph (1) may be made on the Secretary by delivering a copy of the complaint to the Secretary.

      (3) REMANDS- If the court determines, under paragraph (1), that a ruling issued under subsection (a)(4) is not in accordance with applicable law, the court shall remand the matter to the Secretary with directions--

        (A) to make such ruling as the court shall determine to be in accordance with law; or

        (B) to take such further proceedings as, in the opinion of the court, the law requires.

    (c) ENFORCEMENT- The pendency of proceedings instituted under subsection (a) may not impede, hinder, or delay the Secretary or the Attorney General from taking action under section 908.

SEC. 908. ENFORCEMENT.

    (a) IN GENERAL- The Secretary may issue an enforcement order to restrain or prevent any person from violating an order or regulation issued under this subtitle and may assess a civil penalty of not more than $1,000 for each violation of the enforcement order, after an opportunity for an administrative hearing, if the Secretary determines that the administration and enforcement of the order and this subtitle would be adequately served by such a procedure.

    (b) JURISDICTION- The district courts of the United States are vested with jurisdiction specifically to enforce, and to prevent and restrain any person from violating, an order or regulation issued under this subtitle.

    (c) REFERRAL TO ATTORNEY GENERAL- A civil action authorized to be brought under this section shall be referred to the Attorney General for appropriate action.

SEC. 909. INVESTIGATIONS AND POWER TO SUBPOENA.

    (a) INVESTIGATIONS- The Secretary may make such investigations as the Secretary considers necessary--

      (1) for the effective administration of this subtitle; and

      (2) to determine whether any person subject to this subtitle has engaged, or is about to engage, in an act that constitutes or will constitute a violation of this subtitle or of an order or regulation issued under this subtitle.

    (b) OATHS, AFFIRMATIONS, AND SUBPOENAS- For the purpose of an investigation under subsection (a), the Secretary may administer oaths and affirmations, subpoena witnesses, compel the attendance of witnesses, take evidence, and require the production of any records that are relevant to the inquiry. The attendance of witnesses and the production of records may be required from any place in the United States.

    (c) AID OF COURTS-

      (1) REQUEST- In the case of contumacy by, or refusal to obey a subpoena issued to, any person, the Secretary may request the aid of any court of the United States within the jurisdiction of which the investigation or proceeding is carried on, or where the person resides or carries on business, in requiring the attendance and testimony of the person and the production of records.

      (2) ENFORCEMENT ORDER OF THE COURT- The court may issue an enforcement order requiring the person to appear before the Secretary to produce records or to give testimony concerning the matter under investigation.

      (3) CONTEMPT- A failure to obey an enforcement order of the court under paragraph (2) may be punished by the court as a contempt of the court.

      (4) PROCESS- Process in a case under this subsection may be served in the judicial district in which the person resides or conducts business or wherever the person may be found.

SEC. 910. RELATION TO OTHER PROGRAMS.

    Nothing in this subtitle preempts or supersedes any other program relating to popcorn promotion organized and operated under the laws of the United States or any State.

SEC. 911. REGULATIONS.

    The Secretary may issue such regulations as are necessary to carry out this subtitle.

SEC. 912. AUTHORIZATION OF APPROPRIATIONS.

    There are authorized to be appropriated such sums as are necessary to carry out this subtitle. Amounts made available under this section or otherwise made available to the Department, and amounts made available under any other marketing or promotion order, may not be used to pay any administrative expense of the Board.

Subtitle B--Canola and Rapeseed

SEC. 921. SHORT TITLE.

    This subtitle may be cited as the ‘Canola and Rapeseed Research, Promotion, and Consumer Information Act’.

SEC. 922. FINDINGS AND DECLARATION OF POLICY.

    (a) FINDINGS- Congress finds that--

      (1) canola and rapeseed products are an important and nutritious part of the human diet;

      (2) the production of canola and rapeseed products plays a significant role in the economy of the United States in that canola and rapeseed products are produced by thousands of canola and rapeseed producers, processed by numerous processing entities, and canola and rapeseed products produced in the United States are consumed by people throughout the United States and foreign countries;

      (3) canola, rapeseed, and canola and rapeseed products should be readily available and marketed efficiently to ensure that consumers have an adequate supply of canola and rapeseed products at a reasonable price;

      (4) the maintenance and expansion of existing markets and development of new markets for canola, rapeseed, and canola and rapeseed products are vital to the welfare of canola and rapeseed producers and processors and those persons concerned with marketing canola, rapeseed, and canola and rapeseed products, as well as to the general economy of the United States, and are necessary to ensure the ready availability and efficient marketing of canola, rapeseed, and canola and rapeseed products;

      (5) there exist established State and national organizations conducting canola and rapeseed research, promotion, and consumer education programs that are valuable to the efforts of promoting the consumption of canola, rapeseed, and canola and rapeseed products;

      (6) the cooperative development, financing, and implementation of a coordinated national program of canola and rapeseed research, promotion, consumer information, and industry information is necessary to maintain and expand existing markets and develop new markets for canola, rapeseed, and canola and rapeseed products; and

      (7) canola, rapeseed, and canola and rapeseed products move in interstate and foreign commerce, and canola, rapeseed, and canola and rapeseed products that do not move in interstate or foreign commerce directly burden or affect interstate commerce in canola, rapeseed, and canola and rapeseed products.

    (b) POLICY- It is the policy of this subtitle to establish an orderly procedure for developing, financing through assessments on domestically-produced canola and rapeseed, and implementing a program of research, promotion, consumer information, and industry information designed to strengthen the position in the marketplace of the canola and rapeseed industry, to maintain and expand existing domestic and foreign markets and uses for canola, rapeseed, and canola and rapeseed products, and to develop new markets and uses for canola, rapeseed, and canola and rapeseed products.

    (c) CONSTRUCTION- Nothing in this subtitle provides for the control of production or otherwise limits the right of individual producers to produce canola, rapeseed, or canola or rapeseed products.

SEC. 923. DEFINITIONS.

    In this subtitle (unless the context otherwise requires):

      (1) BOARD- The term ‘Board’ means the National Canola and Rapeseed Board established under section 925(b).

      (2) CANOLA; RAPESEED- The terms ‘canola’ and ‘rapeseed’ means any brassica plant grown in the United States for the production of an oilseed, the oil of which is used for a food or nonfood use.

      (3) CANOLA OR RAPESEED PRODUCTS- The term ‘canola or rapeseed products’ means products produced, in whole or in part, from canola or rapeseed.

      (4) COMMERCE- The term ‘commerce’ includes interstate, foreign, and intrastate commerce.

      (5) CONFLICT OF INTEREST- The term ‘conflict of interest’ means a situation in which a member of the Board has a direct or indirect financial interest in a corporation, partnership, sole proprietorship, joint venture, or other business entity dealing directly or indirectly with the Board.

      (6) CONSUMER INFORMATION- The term ‘consumer information’ means information that will assist consumers and other persons in making evaluations and decisions regarding the purchase, preparation, and use of canola, rapeseed, or canola or rapeseed products.

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

      (8) FIRST PURCHASER- The term ‘first purchaser’ means--

        (A) except as provided in subparagraph (B), a person buying or otherwise acquiring canola, rapeseed, or canola or rapeseed products produced by a producer; or

        (B) the Commodity Credit Corporation, in a case in which canola or rapeseed is forfeited to the Commodity Credit Corporation as collateral for a loan issued under a price support loan program administered by the Commodity Credit Corporation.

      (9) INDUSTRY INFORMATION- The term ‘industry information’ means information or programs that will lead to the development of new markets, new marketing strategies, or increased efficiency for the canola and rapeseed industry, or an activity to enhance the image of the canola or rapeseed industry.

      (10) INDUSTRY MEMBER- The term ‘industry member’ means a member of the canola and rapeseed industry who represents--

        (A) manufacturers of canola or rapeseed products; or

        (B) persons who commercially buy or sell canola or rapeseed.

      (11) MARKETING- The term ‘marketing’ means the sale or other disposition of canola, rapeseed, or canola or rapeseed products in a channel of commerce.

      (12) ORDER- The term ‘order’ means an order issued under section 924.

      (13) PERSON- The term ‘person’ means an individual, partnership, corporation, association, cooperative, or any other legal entity.

      (14) PRODUCER- The term ‘producer’ means a person engaged in the growing of canola or rapeseed in the United States who owns, or who shares the ownership and risk of loss of, the canola or rapeseed.

      (15) PROMOTION- The term ‘promotion’ means an action, including paid advertising, technical assistance, or trade servicing activity, to enhance the image or desirability of canola, rapeseed, or canola or rapeseed products in domestic and foreign markets, or an activity designed to communicate to consumers, processors, wholesalers, retailers, government officials, or others information relating to the positive attributes of canola, rapeseed, or canola or rapeseed products or the benefits of use or distribution of canola, rapeseed, or canola or rapeseed products.

      (16) QUALIFIED STATE CANOLA AND RAPESEED BOARD- The term ‘qualified State canola and rapeseed board’ means a State canola and rapeseed promotion entity that is authorized and functioning under State law.

      (17) RESEARCH- The term ‘research’ means any type of test, study, or analysis to advance the image, desirability, marketability, production, product development, quality, or functional or nutritional value of canola, rapeseed, or canola or rapeseed products, including research activity designed to identify and analyze barriers to export sales of canola or rapeseed produced in the United States.

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

      (19) STATE- The term ‘State’ means any of the 50 States, the District of Columbia and the Commonwealth of Puerto Rico.

      (20) UNITED STATES- The term ‘United States’ means collectively the 50 States, the District of Columbia, and the Commonwealth of Puerto Rico.

SEC. 924. ISSUANCE AND AMENDMENT OF ORDERS.

    (a) IN GENERAL- Subject to subsection (b), the Secretary shall issue 1 or more orders under this subtitle applicable to producers and first purchasers of canola, rapeseed, or canola or rapeseed products. The order shall be national in scope. Not more than 1 order shall be in effect under this subtitle at any 1 time.

    (b) PROCEDURE-

      (1) PROPOSAL OR REQUEST FOR ISSUANCE- The Secretary may propose the issuance of an order under this subtitle, or an association of canola and rapeseed producers or any other person that would be affected by an order issued pursuant to this subtitle may request the issuance of, and submit a proposal for, an order.

      (2) NOTICE AND COMMENT CONCERNING PROPOSED ORDER- Not later than 60 days after the receipt of a request and proposal for an order pursuant to paragraph (1), or whenever the Secretary determines to propose an order, the Secretary shall publish a proposed order and give due notice and opportunity for public comment on the proposed order.

      (3) ISSUANCE OF ORDER- After notice and opportunity for public comment are given as provided in paragraph (2), the Secretary shall issue an order, taking into consideration the comments received and including in the order provisions necessary to ensure that the order is in conformity with the requirements of this subtitle. The order shall be issued and become effective not later than 180 days following publication of the proposed order.

    (c) AMENDMENTS- The Secretary, from time to time, may amend an order issued under this section.

SEC. 925. REQUIRED TERMS IN ORDERS.

    (a) IN GENERAL- An order issued under this subtitle shall contain the terms and conditions specified in this section.

    (b) ESTABLISHMENT AND MEMBERSHIP OF THE NATIONAL CANOLA AND RAPESEED BOARD-

      (1) IN GENERAL- The order shall provide for the establishment of, and appointment of members to, a National Canola and Rapeseed Board to administer the order.

      (2) SERVICE TO ENTIRE INDUSTRY- The Board shall carry out programs and projects that will provide maximum benefit to the canola and rapeseed industry in all parts of the United States and only promote canola, rapeseed, or canola or rapeseed products.

      (3) BOARD MEMBERSHIP- The Board shall consist of 15 members, including--

        (A) 11 members who are producers, including--

          (i) 1 member from each of 6 geographic regions comprised of States where canola or rapeseed is produced, as determined by the Secretary; and

          (ii) 5 members from the geographic regions referred to in clause (i), allocated according to the production in each region; and

        (B) 4 members who are industry members, including at least--

          (i) 1 member who represents manufacturers of canola or rapeseed end products; and

          (ii) 1 member who represents persons who commercially buy or sell canola or rapeseed.

      (4) LIMITATION ON STATE RESIDENCE- There shall be no more than 4 producer members of the Board from any State.

      (5) MODIFYING BOARD MEMBERSHIP- In accordance with regulations approved by the Secretary, at least once each 3 years and not more than once each 2 years, the Board shall review the geographic distribution of canola and rapeseed production throughout the United States and, if warranted, recommend to the Secretary that the Secretary--

        (A) reapportion regions in order to reflect the geographic distribution of canola and rapeseed production; and

        (B) reapportion the seats on the Board to reflect the production in each region.

      (6) CERTIFICATION OF ORGANIZATIONS-

        (A) IN GENERAL- The eligibility of any State organization to represent producers shall be certified by the Secretary.

        (B) CRITERIA- The Secretary shall certify any State organization that the Secretary determines has a history of stability and permanency and meets at least 1 of the following criteria:

          (i) MAJORITY REPRESENTATION- The total paid membership of the organization--

            (I) is comprised of at least a majority of canola or rapeseed producers; or

            (II) represents at least a majority of the canola or rapeseed producers in the State.

          (ii) SUBSTANTIAL NUMBER OF PRODUCERS REPRESENTED- The organization represents a substantial number of producers that produce a substantial quantity of canola or rapeseed in the State.

          (iii) PURPOSE- The organization is a general farm or agricultural organization that has as a stated objective the promotion and development of the United States canola or rapeseed industry and the economic welfare of United States canola or rapeseed producers.

        (C) REPORT- The Secretary shall make a certification under this paragraph on the basis of a factual report submitted by the State organization.

      (7) TERMS OF OFFICE-

        (A) IN GENERAL- The members of the Board shall serve for a term of 3 years, except that the members appointed to the initial Board shall serve, proportionately, for terms of 1, 2, and 3 years, as determined by the Secretary.

        (B) TERMINATION OF TERMS- Notwithstanding subparagraph (C), each member shall continue to serve until a successor is appointed by the Secretary.

        (C) LIMITATION ON TERMS- No individual may serve more than 2 consecutive 3-year terms as a member.

      (8) COMPENSATION- A member of the Board shall serve without compensation, but shall be reimbursed for necessary and reasonable expenses incurred in the performance of duties for and approved by the Board.

    (c) POWERS AND DUTIES OF THE BOARD- The order shall define the powers and duties of the Board, which shall include the power and duty--

      (1) to administer the order in accordance with the terms and conditions of the order;

      (2) to make regulations to effectuate the terms and conditions of the order;

      (3) to meet, organize, and select from among members of the Board a chairperson, other officers, and committees and subcommittees, as the Board determines appropriate;

      (4) to establish working committees of persons other than Board members;

      (5) to employ such persons, other than Board members, as the Board considers necessary, and to determine the compensation and define the duties of the persons;

      (6) to prepare and submit for the approval of the Secretary, when appropriate or necessary, a recommended rate of assessment under section 926, and a fiscal period budget of the anticipated expenses in the administration of the order, including the probable costs of all programs and projects;

      (7) to develop programs and projects, subject to subsection (d);

      (8) to enter into contracts or agreements, subject to subsection (e), to develop and carry out programs or projects of research, promotion, industry information, and consumer information;

      (9) to carry out research, promotion, industry information, and consumer information projects, and to pay the costs of the projects with assessments collected under section 926;

      (10) to keep minutes, books, and records that reflect the actions and transactions of the Board, and promptly report minutes of each Board meeting to the Secretary;

      (11) to appoint and convene, from time to time, working committees comprised of producers, industry members, and the public to assist in the development of research, promotion, industry information, and consumer information programs for canola, rapeseed, and canola and rapeseed products;

      (12) to invest, pending disbursement under a program or project, funds collected through assessments authorized under section 926, or funds earned from investments, only in--

        (A) obligations of the United States or an agency of the United States;

        (B) general obligations of a State or a political subdivision of a State;

        (C) an interest-bearing account or certificate of deposit of a bank that is a member of the Federal Reserve System; or

        (D) obligations fully guaranteed as to principal and interest by the United States;

      (13) to receive, investigate, and report to the Secretary complaints of violations of the order;

      (14) to furnish the Secretary with such information as the Secretary may request;

      (15) to recommend to the Secretary amendments to the order;

      (16) to develop and recommend to the Secretary for approval such regulations as may be necessary for the development and execution of programs or projects, or as may otherwise be necessary, to carry out the order; and

      (17) to provide the Secretary with advance notice of meetings.

    (d) PROGRAMS AND BUDGETS-

      (1) SUBMISSION TO SECRETARY- The order shall provide that the Board shall submit to the Secretary for approval any program or project of research, promotion, consumer information, or industry information. No program or project shall be implemented prior to approval by the Secretary.

      (2) BUDGETS- The order shall require the Board, prior to the beginning of each fiscal year, or as may be necessary after the beginning of a fiscal year, to submit to the Secretary for approval budgets of anticipated expenses and disbursements in the implementation of the order, including projected costs of research, promotion, consumer information, and industry information programs and projects.

      (3) INCURRING EXPENSES- The Board may incur such expenses for programs or projects of research, promotion, consumer information, or industry information, and other expenses for the administration, maintenance, and functioning of the Board as may be authorized by the Secretary, including any implementation, administrative, and referendum costs incurred by the Department.

      (4) PAYING EXPENSES- The funds to cover the expenses referred to in paragraph (3) shall be paid by the Board from assessments collected under section 926 or funds borrowed pursuant to paragraph (5).

      (5) AUTHORITY TO BORROW- To meet the expenses referred to in paragraph (3), the Board shall have the authority to borrow funds, as approved by the Secretary, for capital outlays and startup costs.

    (e) CONTRACTS AND AGREEMENTS-

      (1) IN GENERAL- To ensure efficient use of funds, the order shall provide that the Board may enter into a contract or agreement for the implementation and carrying out of a program or project of canola, rapeseed, or canola or rapeseed products research, promotion, consumer information, or industry information, including a contract with a producer organization, and for the payment of the costs with funds received by the Board under the order.

      (2) REQUIREMENTS- A contract or agreement under paragraph (1) shall provide that--

        (A) the contracting party shall develop and submit to the Board a program or project together with a budget that shall show the estimated costs to be incurred for the program or project;

        (B) the program or project shall become effective on the approval of the Secretary; and

        (C) the contracting party shall keep accurate records of all transactions, account for funds received and expended, make periodic reports to the Board of activities conducted, and make such other reports as the Board or the Secretary may require.

      (3) PRODUCER ORGANIZATIONS- The order shall provide that the Board may contract with producer organizations for any other services. The contract shall include provisions comparable to those required by paragraph (2).

    (f) BOOKS AND RECORDS OF THE BOARD-

      (1) IN GENERAL- The order shall require the Board to--

        (A) maintain such books and records (which shall be available to the Secretary for inspection and audit) as the Secretary may prescribe;

        (B) prepare and submit to the Secretary, from time to time, such reports as the Secretary may prescribe; and

        (C) account for the receipt and disbursement of all funds entrusted to the Board.

      (2) AUDITS- The Board shall cause the books and records of the Board to be audited by an independent auditor at the end of each fiscal year, and a report of the audit to be submitted to the Secretary.

    (g) PROHIBITION-

      (1) IN GENERAL- Subject to paragraph (2), the Board shall not engage in any action to, nor shall any funds received by the Board under this subtitle be used to--

        (A) influence legislation or governmental action;

        (B) engage in an action that would be a conflict of interest;

        (C) engage in advertising that is false or misleading; or

        (D) engage in promotion that would disparage other commodities.

      (2) ACTION PERMITTED- Paragraph (1) does not preclude--

        (A) the development and recommendation of amendments to the order;

        (B) the communication to appropriate government officials of information relating to the conduct, implementation, or results of promotion, research, consumer information, or industry information activities under the order; or

        (C) any action designed to market canola or rapeseed products directly to a foreign government or political subdivision of a foreign government.

    (h) BOOKS AND RECORDS-

      (1) IN GENERAL- The order shall require that each producer, first purchaser, or industry member shall--

        (A) maintain and submit to the Board any reports considered necessary by the Secretary to ensure compliance with this subtitle; and

        (B) make available during normal business hours, for inspection by employees of the Board or Secretary, such books and records as are necessary to carry out this subtitle, including such records as are necessary to verify any required reports.

      (2) CONFIDENTIALITY-

        (A) IN GENERAL- Except as otherwise provided in this subtitle, all information obtained from books, records, or reports required to be maintained under paragraph (1) shall be kept confidential, and shall not be disclosed to the public by any person.

        (B) DISCLOSURE- Information referred to in subparagraph (A) may be disclosed to the public if--

          (i) the Secretary considers the information relevant;

          (ii) the information is revealed in a suit or administrative hearing brought at the direction or on the request of the Secretary or to which the Secretary or any officer of the Department is a party; and

          (iii) the information relates to this subtitle.

        (C) MISCONDUCT- A knowing disclosure of confidential information in violation of subparagraph (A) by an officer or employee of the Board or Department, except as required by other law or allowed under subparagraph (B) or (D), shall be considered a violation of this subtitle.

        (D) GENERAL STATEMENTS- Nothing in this paragraph prohibits--

          (i) the issuance of general statements, based on the reports, of the number of persons subject to the order or statistical data collected from the reports, if the statements do not identify the information furnished by any person; or

          (ii) the publication, by direction of the Secretary, of the name of a person violating the order, together with a statement of the particular provisions of the order violated by the person.

      (3) AVAILABILITY OF INFORMATION-

        (A) EXCEPTION- Except as provided in this subtitle, information obtained under this subtitle may be made available to another agency of the Federal Government for a civil or criminal law enforcement activity if the activity is authorized by law and if the head of the agency has made a written request to the Secretary specifying the particular information desired and the law enforcement activity for which the information is sought.

        (B) PENALTY- Any person knowingly violating this subsection, on conviction, shall be subject to a fine of not more than $1,000 or to imprisonment for not more than 1 year, or both, and if an officer or employee of the Board or the Department, shall be removed from office or terminated from employment, as applicable.

      (5) WITHHOLDING INFORMATION- Nothing in this subtitle authorizes withholding information from Congress.

    (i) USE OF ASSESSMENTS- The order shall provide that the assessments collected under section 926 shall be used for payment of the expenses in implementing and administering this subtitle, with provision for a reasonable reserve, and to cover those administrative costs incurred by the Secretary in implementing and administering this subtitle.

    (j) OTHER TERMS AND CONDITIONS- The order also shall contain such terms and conditions, not inconsistent with this subtitle, as determined necessary by the Secretary to effectuate this subtitle.

SEC. 926. ASSESSMENTS.

    (a) IN GENERAL-

      (1) FIRST PURCHASERS- During the effective period of an order issued pursuant to this subtitle, assessments shall be--

        (A) levied on all canola or rapeseed produced in the United States and marketed; and

        (B) deducted from the payment made to a producer for all canola or rapeseed sold to a first purchaser.

      (2) DIRECT PROCESSING- The order shall provide that any person processing canola or rapeseed of that person’s own production and marketing the canola or rapeseed, or canola or rapeseed products, shall remit to the Board or a qualified State canola and rapeseed board, in the manner prescribed by the order, an assessment established at a rate equivalent to the rate provided for under subsection (d).

    (b) LIMITATION ON ASSESSMENTS- No more than 1 assessment may be assessed under subsection (a) on any canola or rapeseed produced (as remitted by a first purchaser).

    (c) REMITTING ASSESSMENTS-

      (1) IN GENERAL- Assessments required under subsection (a) shall be remitted to the Board by a first purchaser. The Board shall use qualified State canola and rapeseed boards to collect the assessments. If an appropriate qualified State canola and rapeseed board does not exist to collect an assessment, the assessment shall be collected by the Board. There shall be only 1 qualified State canola or rapeseed Board in each State.

      (2) TIMES TO REMIT ASSESSMENT- Each first purchaser shall remit the assessment to the Board as provided for in the order.

    (d) ASSESSMENT RATE-

      (1) INITIAL RATE- The initial assessment rate shall be 4 cents per hundredweight of canola or rapeseed produced and marketed.

      (2) INCREASE- The assessment rate may be increased on recommendation by the Board to a rate not exceeding 10 cents per hundredweight of canola or rapeseed produced and marketed in a State, unless--

        (A) after the initial referendum is held under section 927(a), the Board recommends an increase above 10 cents per hundredweight; and

        (B) the increase is approved in a referendum under section 927(b).

      (3) CREDIT- A producer who demonstrates to the Board that the producer is participating in a program of an established qualified State canola and rapeseed board shall receive credit, in determining the assessment due from the producer, for contributions to the program of up to 2 cents per hundredweight of canola or rapeseed marketed.

    (e) LATE PAYMENT CHARGE-

      (1) IN GENERAL- There shall be a late payment charge imposed on any person who fails to remit, on or before the date provided for in the order, to the Board the total amount for which the person is liable.

      (2) AMOUNT OF CHARGE- The amount of the late payment charge imposed under paragraph (1) shall be prescribed by the Board with the approval of the Secretary.

    (f) REFUND OF ASSESSMENTS FROM ESCROW ACCOUNT-

      (1) ESTABLISHMENT OF ESCROW ACCOUNT- During the period beginning on the date on which an order is first issued under section 924(b)(3) and ending on the date on which a referendum is conducted under section 927(a), the Board shall--

        (A) establish an escrow account to be used for assessment refunds; and

        (B) place funds in such account in accordance with paragraph (2).

      (2) PLACEMENT OF FUNDS IN ACCOUNT- The Board shall place in such account, from assessments collected during the period referred to in paragraph (1), an amount equal to the product obtained by multiplying the total amount of assessments collected during the period by 10 percent.

      (3) RIGHT TO RECEIVE REFUND- The Board shall refund to a producer the assessments paid by or on behalf of the producer if--

        (A) the producer is required to pay the assessment;

        (B) the producer does not support the program established under this subtitle; and

        (C) the producer demands the refund prior to the conduct of the referendum under section 927(a).

      (4) FORM OF DEMAND- The demand shall be made in accordance with such regulations, in such form, and within such time period as prescribed by the Board.

      (5) MAKING OF REFUND- The refund shall be made on submission of proof satisfactory to the Board that the producer paid the assessment for which the refund is demanded.

      (6) PRORATION- If--

        (A) the amount in the escrow account required by paragraph (1) is not sufficient to refund the total amount of assessments demanded by eligible producers; and

        (B) the order is not approved pursuant to the referendum conducted under section 927(a);

      the Board shall prorate the amount of the refunds among all eligible producers who demand a refund.

      (7) PROGRAM APPROVED- If the plan is approved pursuant to the referendum conducted under section 927(a), all funds in the escrow account shall be returned to the Board for use by the Board in accordance with this subtitle.

SEC. 927. REFERENDA.

    (a) INITIAL REFERENDUM-

      (1) REQUIREMENT- During the period ending 30 months after the date of the first issuance of an order under section 924, the Secretary shall conduct a referendum among producers who, during a representative period as determined by the Secretary, have been engaged in the production of canola or rapeseed for the purpose of ascertaining whether the order then in effect shall be continued.

      (2) ADVANCE NOTICE- The Secretary shall, to the extent practicable, provide broad public notice in advance of any referendum. The notice shall be provided, without advertising expenses, by means of newspapers, county newsletters, the electronic media, and press releases, through the use of notices posted in State and county Cooperative State Research, Education, and Extension Service offices and county Consolidated Farm Service Agency offices, and by other appropriate means specified in the order. The notice shall include information on when the referendum will be held, registration and voting requirements, rules regarding absentee voting, and other pertinent information.

      (3) APPROVAL OF ORDER- The order shall be continued only if the Secretary determines that the order has been approved by not less than a majority of the producers voting in the referendum.

      (4) DISAPPROVAL OF ORDER- If continuation of the order is not approved by a majority of those voting in the referendum, the Secretary shall terminate collection of assessments under the order within 6 months after the referendum and shall terminate the order in an orderly manner as soon as practicable.

    (b) ADDITIONAL REFERENDA-

      (1) In general-

        (A) REQUIREMENT- After the initial referendum on an order, the Secretary shall conduct additional referenda, as described in subparagraph (C), if requested by a representative group of producers, as described in subparagraph (B).

        (B) REPRESENTATIVE GROUP OF PRODUCERS- An additional referendum on an order shall be conducted if requested by 10 percent or more of the producers who during a representative period have been engaged in the production of canola or rapeseed.

        (C) ELIGIBLE PRODUCERS- Each additional referendum shall be conducted among all producers who, during a representative period, as determined by the Secretary, have been engaged in the production of canola or rapeseed to determine whether the producers favor the termination or suspension of the order.

      (2) DISAPPROVAL OF ORDER- If the Secretary determines, in a referendum conducted under paragraph (1), that suspension or termination of the order is favored by a majority of the producers voting in the referendum, the Secretary shall suspend or terminate, as appropriate, collection of assessments under the order within 6 months after the determination, and shall suspend or terminate the order, as appropriate, in an orderly manner as soon as practicable after the determination.

      (3) Opportunity to request additional referenda-

        (A) IN GENERAL- Beginning on the date that is 5 years after the conduct of a referendum under this subtitle, and every 5 years thereafter, the Secretary shall provide canola and rapeseed producers an opportunity to request an additional referendum.

        (B) Method of making request-

          (i) IN-PERSON REQUESTS- To carry out subparagraph (A), the Secretary shall establish a procedure under which a producer may request a reconfirmation referendum in-person at a county Cooperative State Research, Education, and Extension Service office or a county Consolidated Farm Service Agency office during a period established by the Secretary, or as provided in clause (ii).

          (ii) MAIL-IN REQUESTS- In lieu of making a request in person, a producer may make a request by mail. To facilitate the submission of requests by mail, the Secretary may make mail-in request forms available to producers.

        (C) NOTIFICATIONS- The Secretary shall publish a notice in the Federal Register, and the Board shall provide written notification to producers, not later than 60 days prior to the end of the period established under subparagraph (B)(i) for an in-person request, of the opportunity of producers to request an additional referendum. The notification shall explain the right of producers to an additional referendum, the procedure for a referendum, the purpose of a referendum, and the date and method by which producers may act to request an additional referendum under this paragraph. The Secretary shall take such other action as the Secretary determines is necessary to ensure that producers are made aware of the opportunity to request an additional referendum.

        (D) ACTION BY SECRETARY- As soon as practicable following the submission of a request for an additional referendum, the Secretary shall determine whether a sufficient number of producers have requested the referendum, and take such steps as are necessary to conduct the referendum, as required under paragraph (1).

        (E) TIME LIMIT- An additional referendum requested under the procedures provided in this paragraph shall be conducted not later than 1 year after the Secretary determines that a representative group of producers, as described in paragraph (1)(B), have requested the conduct of the referendum.

    (c) PROCEDURES-

      (1) REIMBURSEMENT OF SECRETARY- The Secretary shall be reimbursed from assessments collected by the Board for any expenses incurred by the Secretary in connection with the conduct of an activity required under this section.

      (2) DATE- Each referendum shall be conducted for a reasonable period of time not to exceed 3 days, established by the Secretary, under a procedure under which producers intending to vote in the referendum shall certify that the producers were engaged in the production of canola, rapeseed, or canola or rapeseed products during the representative period and, at the same time, shall be provided an opportunity to vote in the referendum.

      (3) PLACE- Referenda under this section shall be conducted at locations determined by the Secretary. On request, absentee mail ballots shall be furnished by the Secretary in a manner prescribed by the Secretary.

SEC. 928. PETITION AND REVIEW.

    (a) PETITION-

      (1) IN GENERAL- A person subject to an order issued under this subtitle may file with the Secretary a petition--

        (A) stating that the order, a provision of the order, or an obligation imposed in connection with the order is not established in accordance with law; and

        (B) requesting a modification of the order or an exemption from the order.

      (2) HEARINGS- The petitioner shall be given the opportunity for a hearing on a petition filed under paragraph (1), in accordance with regulations issued by the Secretary.

      (3) RULING- After a hearing under paragraph (2), the Secretary shall make a ruling on the petition that is the subject of the hearing, which shall be final if the ruling is in accordance with applicable law.

      (4) LIMITATION ON PETITION- Any petition filed under this subtitle challenging an order, or any obligation imposed in connected with an order, shall be filed not later than 2 years after the effective date of the order or obligation.

    (b) REVIEW-

      (1) COMMENCEMENT OF ACTION- The district court of the United States in any district in which the person who is a petitioner under subsection (a) resides or carries on business shall have jurisdiction to review a ruling on the petition, if a complaint is filed by the person not later than 20 days after the date of the entry of a ruling by the Secretary under subsection (a)(3).

      (2) PROCESS- Service of process in a proceeding under paragraph (1) shall be conducted in accordance with the Federal Rules of Civil Procedure.

      (3) REMANDS- If the court determines, under paragraph (1), that a ruling issued under subsection (a)(3) is not in accordance with applicable law, the court shall remand the matter to the Secretary with directions either--

        (A) to make such ruling as the court shall determine to be in accordance with law; or

        (B) to take such further proceedings as, in the opinion of the court, the law requires.

      (4) ENFORCEMENT- The pendency of proceedings instituted under subsection (a) shall not impede, hinder, or delay the Attorney General or the Secretary from taking any action under section 929.

SEC. 929. ENFORCEMENT.

    (a) JURISDICTION- The district courts of the United States are vested with jurisdiction specifically to enforce, and to prevent and restrain any person from violating, an order or regulation made or issued under this subtitle.

    (b) REFERRAL TO ATTORNEY GENERAL- A civil action authorized to be commenced under this section shall be referred to the Attorney General for appropriate action, except that the Secretary shall not be required to refer to the Attorney General a violation of this subtitle if the Secretary believes that the administration and enforcement of this subtitle would be adequately served by providing a suitable written notice or warning to the person who committed the violation or by administrative action under section 928.

    (c) CIVIL PENALTIES AND ORDERS-

      (1) CIVIL PENALTIES-

        (A) IN GENERAL- Any person who willfully violates any provision of an order or regulation issued by the Secretary under this subtitle, or who fails or refuses to pay, collect, or remit an assessment or fee required of the person under an order or regulation, may be assessed--

          (i) a civil penalty by the Secretary of not more than $1,000 for each violation; and

          (ii) in the case of a willful failure to pay, collect, or remit an assessment as required by an order or regulation, an additional penalty equal to the amount of the assessment.

        (B) SEPARATE OFFENSE- Each violation under subparagraph (A) shall be a separate offense.

      (2) CEASE-AND-DESIST ORDERS- In addition to, or in lieu of, a civil penalty under paragraph (1), the Secretary may issue an order requiring a person to cease and desist from continuing a violation.

      (3) NOTICE AND HEARING- No penalty shall be assessed, or cease-and-desist order issued, by the Secretary under this subsection unless the person against whom the penalty is assessed or the order is issued is given notice and opportunity for a hearing before the Secretary with respect to the violation.

      (4) FINALITY- The order of the Secretary assessing a penalty or imposing a cease-and-desist order under this subsection shall be final and conclusive unless the affected person files an appeal of the order with the appropriate district court of the United States in accordance with subsection (d).

    (d) REVIEW BY DISTRICT COURT-

      (1) COMMENCEMENT OF ACTION- Any person who has been determined to be in violation of this subtitle, or against whom a civil penalty has been assessed or a cease-and-desist order issued under subsection (c), may obtain review of the penalty or order by--

        (A) filing, within the 30-day period beginning on the date the penalty is assessed or order issued, a notice of appeal in--

          (i) the district court of the United States for the district in which the person resides or conducts business; or

          (ii) the United States District Court for the District of Columbia; and

        (B) simultaneously sending a copy of the notice by certified mail to the Secretary.

      (2) RECORD- The Secretary shall file promptly, in the appropriate court referred to in paragraph (1), a certified copy of the record on which the Secretary has determined that the person has committed a violation.

      (3) STANDARD OF REVIEW- A finding of the Secretary under this section shall be set aside only if the finding is found to be unsupported by substantial evidence.

    (e) FAILURE TO OBEY ORDERS- Any person who fails to obey a cease-and-desist order issued under this section after the order has become final and unappealable, or after the appropriate United States district court has entered a final judgment in favor of the Secretary, shall be subject to a civil penalty assessed by the Secretary, after opportunity for a hearing and for judicial review under the procedures specified in subsections (c) and (d), of not more than $5,000 for each offense. Each day during which the failure continues shall be considered as a separate violation of the order.

    (f) FAILURE TO PAY PENALTIES- If a person fails to pay an assessment of a civil penalty under this section after the assessment has become a final and unappealable order, or after the appropriate United States district court has entered final judgment in favor of the Secretary, the Secretary shall refer the matter to the Attorney General for recovery of the amount assessed in the district court in which the person resides or conducts business. In an action for recovery, the validity and appropriateness of the final order imposing the civil penalty shall not be subject to review.

    (g) ADDITIONAL REMEDIES- The remedies provided in this subtitle shall be in addition to, and not exclusive of, other remedies that may be available.

SEC. 930. INVESTIGATIONS AND POWER TO SUBPOENA.

    (a) INVESTIGATIONS- The Secretary may make such investigations as the Secretary considers necessary--

      (1) for the effective administration of this subtitle; and

      (2) to determine whether any person has engaged or is engaging in an act that constitutes a violation of this subtitle, or an order, rule, or regulation issued under this subtitle.

    (b) SUBPOENAS, OATHS, AND AFFIRMATIONS-

      (1) IN GENERAL- For the purpose of an investigation under subsection (a), the Secretary may administer oaths and affirmations, subpoena witnesses, take evidence, and issue subpoenas to require the production of any records that are relevant to the inquiry. The attendance of witnesses and the production of records may be required from any place in the United States.

      (2) ADMINISTRATIVE HEARINGS- For the purpose of an administrative hearing held under section 928 or 929, the presiding officer is authorized to administer oaths and affirmations, subpoena and compel the attendance of witnesses, take evidence, and require the production of any records that are relevant to the inquiry. The attendance of witnesses and the production of records may be required from any place in the United States.

    (c) AID OF COURTS- In the case of contumacy by, or refusal to obey a subpoena issued to, any person, the Secretary may invoke the aid of any court of the United States within the jurisdiction of which the investigation or proceeding is carried on, or where the person resides or carries on business, in order to enforce a subpoena issued by the Secretary under subsection (b). The court may issue an order requiring the person to comply with the subpoena.

    (d) CONTEMPT- A failure to obey an order of the court under this section may be punished by the court as contempt of the court.

    (e) PROCESS- Process may be served on a person in the judicial district in which the person resides or conducts business or wherever the person may be found.

    (f) HEARING SITE- The site of a hearing held under section 928 or 729 shall be in the judicial district where the person affected by the hearing resides or has a principal place of business.

SEC. 931. SUSPENSION OR TERMINATION OF AN ORDER.

    The Secretary shall, whenever the Secretary finds that an order or a provision of an order obstructs or does not tend to effectuate the declared policy of this subtitle, terminate or suspend the operation of the order or provision. The termination or suspension of an order shall not be considered an order within the meaning of this subtitle.

SEC. 932. REGULATIONS.

    The Secretary may issue such regulations as are necessary to carry out this subtitle.

SEC. 933. AUTHORIZATION OF APPROPRIATIONS.

    (a) IN GENERAL- There are authorized to be appropriated for each fiscal year such sums as are necessary to carry out this subtitle.

    (b) ADMINISTRATIVE EXPENSES- Funds appropriated under subsection (a) shall not be available for payment of the expenses or expenditures of the Board in administering a provision of an order issued under this subtitle.

Subtitle C--Kiwifruit

SEC. 941. SHORT TITLE.

    This subtitle may be cited as the ‘National Kiwifruit Research, Promotion, and Consumer Information Act’.

SEC. 942. FINDINGS AND PURPOSES.

    (a) FINDINGS- Congress finds that--

      (1) domestically produced kiwifruit are grown by many individual producers;

      (2) virtually all domestically produced kiwifruit are grown in the State of California, although there is potential for production in many other areas of the United States;

      (3) kiwifruit move in interstate and foreign commerce, and kiwifruit that do not move in channels of commerce directly burden or affect interstate commerce;

      (4) in recent years, large quantities of kiwifruit have been imported into the United States;

      (5) the maintenance and expansion of existing domestic and foreign markets for kiwifruit, and the development of additional and improved markets for kiwifruit, are vital to the welfare of kiwifruit producers and other persons concerned with producing, marketing, and processing kiwifruit;

      (6) a coordinated program of research, promotion, and consumer information regarding kiwifruit is necessary for the maintenance and development of the markets; and

      (7) kiwifruit producers, handlers, and importers are unable to implement and finance such a program without cooperative action.

    (b) PURPOSES- The purposes of this subtitle are--

      (1) to authorize the establishment of an orderly procedure for the development and financing (through an assessment) of an effective and coordinated program of research, promotion, and consumer information regarding kiwifruit;

      (2) to use the program to strengthen the position of the kiwifruit industry in domestic and foreign markets and maintain, develop, and expand markets for kiwifruit; and

      (3) to treat domestically produced kiwifruit and imported kiwifruit equitably.

SEC. 943. DEFINITIONS.

    In this subtitle (unless the context otherwise requires):

      (1) BOARD- The term ‘Board’ means the National Kiwifruit Board established under section 945.

      (2) CONSUMER INFORMATION- The term ‘consumer information’ means any action taken to provide information to, and broaden the understanding of, the general public regarding the consumption, use, nutritional attributes, and care of kiwifruit.

      (3) EXPORTER- The term ‘exporter’ means any person from outside the United States who exports kiwifruit into the United States.

      (4) HANDLER- The term ‘handler’ means any person, excluding a common carrier, engaged in the business of buying and selling, packing, marketing, or distributing kiwifruit as specified in the order.

      (5) IMPORTER- The term ‘importer’ means any person who imports kiwifruit into the United States.

      (6) KIWIFRUIT- The term ‘kiwifruit’ means all varieties of fresh kiwifruit grown or imported in the United States.

      (7) MARKETING- The term ‘marketing’ means the sale or other disposition of kiwifruit into interstate, foreign, or intrastate commerce by buying, marketing, distribution, or otherwise placing kiwifruit into commerce.

      (8) ORDER- The term ‘order’ means a kiwifruit research, promotion, and consumer information order issued by the Secretary under section 944.

      (9) PERSON- The term ‘person’ means any individual, group of individuals, partnership, corporation, association, cooperative, or other legal entity.

      (10) PROCESSING- The term ‘processing’ means canning, fermenting, distilling, extracting, preserving, grinding, crushing, or in any manner changing the form of kiwifruit for the purposes of preparing the kiwifruit for market or marketing the kiwifruit.

      (11) PRODUCER- The term ‘producer’ means any person who grows kiwifruit in the United States for sale in commerce.

      (12) PROMOTION- The term ‘promotion’ means any action taken under this subtitle (including paid advertising) to present a favorable image for kiwifruit to the general public for the purpose of improving the competitive position of kiwifruit and stimulating the sale of kiwifruit.

      (13) RESEARCH- The term ‘research’ means any type of research relating to the use, nutritional value, and marketing of kiwifruit conducted for the purpose of advancing the image, desirability, marketability, or quality of kiwifruit.

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

      (15) UNITED STATES- The term ‘United States’ means the 50 States of the United States, the District of Columbia, and the Commonwealth of Puerto Rico.

SEC. 944. ISSUANCE OF ORDERS.

    (a) ISSUANCE- To effectuate the declared purposes of this subtitle, the Secretary shall issue an order applicable to producers, handlers, and importers of kiwifruit. Any such order shall be national in scope. Not more than 1 order shall be in effect under this subtitle at any 1 time.

    (b) PROCEDURE-

      (1) PROPOSAL FOR ISSUANCE OF ORDER- Any person that will be affected by this subtitle may request the issuance of, and submit a proposal for, an order under this subtitle.

      (2) PROPOSED ORDER- Not later than 90 days after the receipt of a request and proposal for an order, the Secretary shall publish a proposed order and give due notice and opportunity for public comment on the proposed order.

      (3) ISSUANCE OF ORDER- After notice and opportunity for public comment are provided under paragraph (2), the Secretary shall issue an order, taking into consideration the comments received and including in the order provisions necessary to ensure that the order is in conformity with this subtitle.

    (c) AMENDMENTS- The Secretary may amend any order issued under this section. The provisions of this subtitle applicable to an order shall be applicable to an amendment to an order.

SEC. 945. NATIONAL KIWIFRUIT BOARD.

    (a) MEMBERSHIP- An order issued by the Secretary under section 944 shall provide for the establishment of a National Kiwifruit Board that consists of the following 11 members:

      (1) 6 members who are producers (or representatives of producers) and who are not exempt from an assessment under section 946(b).

      (2) 4 members who are importers (or representatives of importers) and who are not exempt from an assessment under section 946(b) or are exporters (or representatives of exporters).

      (3) 1 member appointed from the general public.

    (b) ADJUSTMENT OF MEMBERSHIP- Subject to the 11-member limit, the Secretary may adjust membership on the Board to accommodate changes in production and import levels of kiwifruit.

    (c) APPOINTMENT AND NOMINATION-

      (1) APPOINTMENT- The Secretary shall appoint the members of the Board from nominations submitted in accordance with this subsection.

      (2) PRODUCERS- The members referred to in subsection (a)(1) shall be appointed from individuals nominated by producers.

      (3) IMPORTERS AND EXPORTERS- The members referred to in subsection (a)(2) shall be appointed from individuals nominated by importers or exporters.

      (4) PUBLIC REPRESENTATIVE- The public representative shall be appointed from nominations submitted by other members of the Board.

      (5) FAILURE TO NOMINATE- If producers, importers, and exporters fail to nominate individuals for appointment, the Secretary may appoint members on a basis provided for in the order. If the Board fails to nominate a public representative, the member may be appointed by the Secretary without a nomination.

    (d) ALTERNATES- The Secretary shall appoint an alternate for each member of the Board. An alternate shall--

      (1) be appointed in the same manner as the member for whom the individual is an alternate; and

      (2) serve on the Board if the member is absent from a meeting or is disqualified under subsection (f).

    (e) TERMS- A member of the Board shall be appointed for a term of 3 years. No member may serve more than 2 consecutive 3-year terms, except that of the members first appointed--

      (1) 5 members shall be appointed for a term of 2 years; and

      (2) 6 members shall be appointed for a term of 3 years.

    (f) DISQUALIFICATION- If a member or alternate of the Board who was appointed as a producer, importer, exporter, or public representative member ceases to belong to the group for which the member was appointed, the member or alternate shall be disqualified from serving on the Board.

    (g) COMPENSATION- A members or alternate of the Board shall serve without pay.

    (h) GENERAL POWERS AND DUTIES- The Board shall--

      (1) administer an order issued by the Secretary under section 944, and an amendment to the order, in accordance with the order and amendment and this subtitle;

      (2) prescribe rules and regulations to carry out the order;

      (3) meet, organize, and select from among members of the Board a chairperson, other officers, and committees and subcommittees, as the Board determines appropriate;

      (4) receive, investigate, and report to the Secretary accounts of violations of the order;

      (5) make recommendations to the Secretary with respect to an amendment that should be made to the order; and

      (6) employ or contract with a manager and staff to assist in administering the order, except that, to reduce administrative costs and increase efficiency, the Board shall seek, to the extent practicable, to employ or contract with personnel who are already associated with State chartered organizations involved in promoting kiwifruit.

SEC. 946. REQUIRED TERMS IN ORDER.

    (a) BUDGETS AND PLANS-

      (1) IN GENERAL- An order issued under section 944 shall provide for periodic budgets and plans in accordance with this subsection.

      (2) BUDGETS- The Board shall prepare and submit to the Secretary a budget prior to the beginning of the fiscal year of the anticipated expenses and disbursements of the Board in the administration of the order, including probable costs of research, promotion, and consumer information. A budget shall become effective on a 2/3 -vote of a quorum of the Board and approval by the Secretary.

      (3) PLANS- Each budget shall include a plan for research, promotion, and consumer information regarding kiwifruit. A plan under this paragraph shall become effective on approval by the Secretary. The Board may enter into contracts and agreements, on approval by the Secretary, for--

        (A) the development of and carrying out the plan; and

        (B) the payment of the cost of the plan, with funds collected pursuant to this subtitle.

    (b) ASSESSMENTS-

      (1) IN GENERAL- The order shall provide for the imposition and collection of assessments with regard to the production and importation of kiwifruit in accordance with this subsection.

      (2) RATE- The assessment rate shall be the reate that is recommended by a 2/3 -vote of a quorum of the Board and approved by the Secretary, except that the rate shall not exceed $0.10 per 7-pound tray of kiwifruit or equivalent.

      (3) COLLECTION BY FIRST HANDLERS- Except as provided in paragraph (5), the first handler of kiwifruit shall--

        (A) be responsible for the collection from the producer, and payment to the Board, of assessments required under this subsection; and

        (B) maintain a separate record of the kiwifruit of each producer whose kiwifruit are so handled, including the kiwifruit owned by the handler.

      (4) IMPORTERS- The assessment on imported kiwifruit shall be paid by the importer to the United States Customs Service at the time of entry into the United States and shall be remitted to the Board.

      (5) EXEMPTION FROM ASSESSMENT- The following persons or activities are exempt from an assessment under this subsection:

        (A) A producer who produces less than 500 pounds of kiwifruit per year.

        (B) An importer who imports less than 10,000 pounds of kiwifruit per year.

        (C) A sale of kiwifruit made directly from the producer to a consumer for a purpose other than resale.

        (D) The production or importation of kiwifruit for processing.

      (6) CLAIM OF EXEMPTION- To claim an exemption under paragraph (5) for a particular year, a person shall--

        (A) submit an application to the Board stating the basis for the exemption and certifying that the quantity of kiwifruit produced, imported, or sold by the person will not exceed any poundage limitation required for the exemption in the year; or

        (B) be on a list of approved processors developed by the Board.

    (c) Use of Assessments.

      (1) AUTHORIZED USES- The order shall provide that funds paid to the Board as assessments under subsection (b) may be used by the Board--

        (A) to pay for research, promotion, and consumer information described in the budget of the Board under subsection (a) and for other expenses incurred by the Board in the administration of an order;

        (B) to pay such other expenses for the administration, maintenance, and functioning of the Board, including any enforcement efforts for the collection of assessments as may be authorized by the Secretary, including interest and penalties for late payments; and

        (C) to fund a reserve established under section 947(d).

      (2) REQUIRED USES- The order shall provide that funds paid to the Board as assessments under subsection (b) shall be used by the Board--

        (A) to pay the expenses incurred by the Secretary, including salaries and expenses of Federal Government employees, in implementing and administering the order; and

        (B) to reimburse the Secretary for any expenses incurred by the Secretary in conducting referenda under this subtitle.

      (3) LIMITATION ON USE OF ASSESSMENTS- Except for the first year of operation of the Board, expenses for the administration, maintenance, and functioning of the Board may not exceed 30 percent of the budget for a year.

    (d) FALSE CLAIMS- The order shall provide that any promotion funded with assessments collected under subsection (b) may not make--

      (1) any false claims on behalf of kiwifruit; and

      (2) any false statements with respect to the attributes or use of any product that competes with kiwifruit for sale in commerce.

    (e) PROHIBITION ON USE OF FUNDS- The order shall provide that funds collected by the Board under this subtitle through assessments may not, in any manner, be used for the purpose of influencing legislation or governmental policy or action, except for making recommendations to the Secretary as provided for under this subtitle.

    (f) BOOKS, RECORDS, AND REPORTS-

      (1) BOARD- The order shall require the Board--

        (A) to maintain books and records with respect to the receipt and disbursement of funds received by the Board;

        (B) to submit to the Secretary from time to time such reports as the Secretary may require for appropriate accounting; and

        (C) to submit to the Secretary at the end of each fiscal year a complete audit report by an independent auditor regarding the activities of the Board during the fiscal year.

      (2) OTHERS- To make information and data available to the Board and the Secretary that is appropriate or necessary for the effectuation, administration, or enforcement of this subtitle (or any order or regulation issued under this subtitle), the order shall require handlers and importers who are responsible for the collection, payment, or remittance of assessments under subsection (b)--

        (A) to maintain and make available for inspection by the employees and agents of the Board and the Secretary such books and records as may be required by the order; and

        (B) to file, at the times and in the manner and content prescribed by the order, reports regarding the collection, payment, or remittance of the assessments.

    (g) CONFIDENTIALITY-

      (1) IN GENERAL- The order shall require that all information obtained pursuant to subsection (f)(2) be kept confidential by all officers and employees and agents of the Department and of the Board. Only such information as the Secretary considers relevant shall be disclosed to the public and only in a suit or administrative hearing, brought at the request of the Secretary or to which the Secretary or any officer of the United States is a party, involving the order with respect to which the information was furnished or acquired.

      (2) LIMITATIONS- Nothing in this subsection prohibits--

        (A) issuance of general statements based on the reports of a number of handlers and importers subject to an order, if the statements do not identify the information furnished by any person; or

        (B) the publication, by direction of the Secretary, of the name of any person violating an order issued under section 944(a), together with a statement of the particular provisions of the order violated by the person.

      (3) PENALTY- Any person who willfully violates this subsection, on conviction, shall be subject to a fine of not more than $1,000 or to imprisonment for not more than 1 year, or both, and, if the person is a member, officer, or agent of the board or an employee of the Department, shall be removed from office.

    (h) WITHHOLDING INFORMATION- Nothing in this subtitle authorizes the withholding of information from Congress.

SEC. 947. PERMISSIVE TERMS IN ORDER.

    (a) PERMISSIVE TERMS- On the recommendation of the Board and with the approval of the Secretary, an order issued under section 944 may include the terms and conditions specified in this section and such additional terms and conditions as the Secretary considers necessary to effectuate the other provisions of the order and are incidental to, and not inconsistent with, this subtitle.

    (b) ALTERNATIVE PAYMENT AND REPORTING SCHEDULES- The order may authorize the Board to designate different handler payment and reporting schedules to recognize differences in marketing practices and procedures.

    (c) WORKING GROUPS- The order may authorize the Board to convene working groups drawn from producers, handlers, importers, exporters, or the general public and utilize the expertise of the groups to assist in the development of research and marketing programs for kiwifruit.

    (d) RESERVE FUNDS- The order may authorize the Board to accumulate reserve funds from assessments collected pursuant to section 946(b) to permit an effective and continuous coordinated program of research, promotion, and consumer information in years in which production and assessment income may be reduced, except that any reserve fund may not exceed the amount budgeted for operation of this subtitle for 1 year.

    (e) PROMOTION ACTIVITIES OUTSIDE UNITED STATES- The order may authorize the Board to use, with the approval of the Secretary, funds collected under section 946(b) and funds from other sources for the development and expansion of sales in foreign markets of kiwifruit produced in the United States.

SEC. 948. PETITION AND REVIEW.

    (a) PETITION-

      (1) IN GENERAL- A person subject to an order may file with the Secretary a petition--

        (A) stating that the order, a provision of the order, or an obligation imposed in connection with the order is not in accordance with law; and

        (B) requesting a modification of the order or an exemption from the order.

      (2) HEARINGS- A person submitting a petition under paragraph (1) shall be given an opportunity for a hearing on the petition, in accordance with regulations issued by the Secretary.

      (3) RULING- After the hearing, the Secretary shall make a ruling on the petition which shall be final if the petition is in accordance with law.

      (4) LIMITATION ON PETITION- Any petition filed under this subtitle challenging an order, or any obligation imposed in connected with an order, shall be filed not later than 2 years after the effective date of the order or obligation.

    (b) REVIEW-

      (1) COMMENCEMENT OF ACTION- The district court of the United States in any district in which the person who is a petitioner under subsection (a) resides or carries on business is vested with jurisdiction to review the ruling on the petition of the person, if a complaint for that purpose is filed not later than 20 days after the date of the entry of a ruling by the Secretary under subsection (a).

      (2) PROCESS- Service of process in the proceedings shall be conducted in accordance with the Federal Rules of Civil Procedure.

      (3) REMANDS- If the court determines that the ruling is not in accordance with law, the court shall remand the matter to the Secretary with directions--

        (A) to make such ruling as the court shall determine to be in accordance with law; or

        (B) to take such further action as, in the opinion of the court, the law requires.

      (4) ENFORCEMENT- The pendency of a proceeding instituted pursuant to subsection (a) shall not impede, hinder, or delay the Attorney General or the Secretary from obtaining relief pursuant to section 949.

SEC. 949. ENFORCEMENT.

    (a) JURISDICTION- A district court of the United States shall have jurisdiction specifically to enforce, and to prevent and restrain any person from violating, any order or regulation made or issued by the Secretary under this subtitle.

    (b) REFERRAL TO ATTORNEY GENERAL- A civil action authorized to be brought under this section shall be referred to the Attorney General for appropriate action, except that the Secretary is not required to refer to the Attorney General a violation of this subtitle, or any order or regulation issued under this subtitle, if the Secretary believes that the administration and enforcement of this subtitle would be adequately served by administrative action under subsection (c) or suitable written notice or warning to any person committing the violation.

    (c) CIVIL PENALTIES AND ORDERS-

      (1) CIVIL PENALTIES- Any person who willfully violates any provision of any order or regulation issued by the Secretary under this subtitle, or who fails or refuses to pay, collect, or remit any assessment or fee duly required of the person under the order or regulation, may be assessed a civil penalty by the Secretary of not less than $500 nor more than $5,000 for each such violation. Each violation shall be a separate offense.

      (2) CEASE-AND-DESIST ORDERS- In addition to or in lieu of the civil penalty, the Secretary may issue an order requiring the person to cease and desist from continuing the violation.

      (3) NOTICE AND HEARING- No order assessing a civil penalty or cease-and-desist order may be issued by the Secretary under this subsection unless the Secretary gives the person against whom the order is issued notice and opportunity for a hearing on the record before the Secretary with respect to the violation.

      (4) FINALITY- The order of the Secretary assessing a penalty or imposing a cease-and-desist order shall be final and conclusive unless the person against whom the order is issued files an appeal from the order with the appropriate district court of the United States, in accordance with subsection (d).

    (d) REVIEW BY UNITED STATES DISTRICT COURT-

      (1) COMMENCEMENT OF ACTION- Any person against whom a violation is found and a civil penalty assessed or cease-and-desist order issued under subsection (c) may obtain review of the penalty or order in the district court of the United States for the district in which the person resides or does business, or the United States district court for the District of Columbia, by--

        (A) filing a notice of appeal in the court not later than 30 days after the date of the order; and

        (B) simultaneously sending a copy of the notice by certified mail to the Secretary.

      (2) RECORD- The Secretary shall promptly file in the court a certified copy of the record on which the Secretary found that the person had committed a violation.

      (3) STANDARD OF REVIEW- A finding of the Secretary shall be set aside only if the finding is found to be unsupported by substantial evidence.

    (e) FAILURE TO OBEY ORDERS- Any person who fails to obey a cease-and-desist order issued by the Secretary after the order has become final and unappealable, or after the appropriate United States district court has entered a final judgment in favor of the Secretary, shall be subject to a civil penalty assessed by the Secretary, after opportunity for a hearing and for judicial review under the procedures specified in subsections (c) and (d), of not more than $500 for each offense. Each day during which the failure continues shall be considered a separate violation of the order.

    (f) FAILURE TO PAY PENALTIES- If a person fails to pay an assessment of a civil penalty after the assessment has become a final and unappealable order issued by the Secretary, or after the appropriate United States district court has entered final judgment in favor of the Secretary, the Secretary shall refer the matter to the Attorney General for recovery of the amount assessed in the district court of the United States in any district in which the person resides or conducts business. In the action, the validity and appropriateness of the final order imposing the civil penalty shall not be subject to review.

SEC. 950. INVESTIGATIONS AND POWER TO SUBPOENA.

    (a) IN GENERAL- The Secretary may make such investigations as the Secretary considers necessary--

      (1) for the effective carrying out of the responsibilities of the Secretary under this subtitle; or

      (2) to determine whether a person subject to this subtitle has engaged or is engaging in any act that constitutes a violation of this subtitle, or any order, rule, or regulation issued under this subtitle.

    (b) POWER TO SUBPOENA-

      (1) INVESTIGATIONS- For the purpose of an investigation made under subsection (a), the Secretary may administer oaths and affirmations and may issue subpoenas to require the production of any records that are relevant to the inquiry. The production of any such records may be required from any place in the United States.

      (2) ADMINISTRATIVE HEARINGS- For the purpose of an administrative hearing held under section 948 or 949, the presiding officer is authorized to administer oaths and affirmations, subpoena witnesses, compel the attendance of witnesses, take evidence, and require the production of any records that are relevant to the inquiry. The attendance of witnesses and the production of any such records may be required from any place in the United States.

    (c) AID OF COURTS- In the case of contumacy by, or refusal to obey a subpoena to, any person, the Secretary may invoke the aid of any court of the United States within the jurisdiction of which the investigation or proceeding is carried on, or where the person resides or carries on business, to enforce a subpoena issued by the Secretary under subsection (b). The court may issue an order requiring the person to comply with the subpoena.

    (d) CONTEMPT- Any failure to obey the order of the court may be punished by the court as a contempt of the order.

    (e) PROCESS- Process in any such case may be served in the judicial district of which the person resides or conducts business or wherever the person may be found.

    (f) HEARING SITE- The site of any hearing held under section 948 or 949 shall be within the judicial district where the person is an inhabitant or has a principal place of business.

SEC. 951. REFERENDA.

    (a) INITIAL REFERENDUM-

      (1) REFERENDUM REQUIRED- During the 60-day period immediately preceding the proposed effective date of an order issued under section 944, the Secretary shall conduct a referendum among kiwifruit producers and importers who will be subject to assessments under the order, to ascertain whether producers and importers approve the implementation of the order.

      (2) APPROVAL OF ORDER- The order shall become effective, as provided in section 944, if the Secretary determines that--

        (A) the order has been approved by a majority of the producers and importers voting in the referendum; and

        (B) the producers and importers produce and import more than 50 percent of the total volume of kiwifruit produced and imported by persons voting in the referendum.

    (b) SUBSEQUENT REFERENDA- The Secretary may periodically conduct a referendum to determine if kiwifruit producers and importers favor the continuation, termination, or suspension of any order issued under section 944 that is in effect at the time of the referendum.

    (c) REQUIRED REFERENDA- The Secretary shall hold a referendum under subsection (b)--

      (1) at the end of the 6-year period beginning on the effective date of the order and at the end of each subsequent 6-year period;

      (2) at the request of the Board; or

      (3) if not less than 30 percent of the kiwifruit producers and importers subject to assessments under the order submit a petition requesting the referendum.

    (d) VOTE- On completion of a referendum under subsection (b), the Secretary shall suspend or terminate the order that was subject to the referendum at the end of the marketing year if--

      (1) the suspension or termination of the order is favored by not less than a majority of the producers and importers voting in the referendum; and

      (2) the producers and importers produce and import more than 50 percent of the total volume of kiwifruit produced and imported by persons voting in the referendum.

    (e) CONFIDENTIALITY- The ballots and other information or reports that reveal, or tend to reveal, the vote of any person under this subtitle and the voting list shall be held strictly confidential and shall not be disclosed.

SEC. 952. SUSPENSION AND TERMINATION OF ORDER BY SECRETARY.

    (a) IN GENERAL- If the Secretary finds that an order issued under section 944, or a provision of the order, obstructs or does not tend to effectuate the purposes of this subtitle, the Secretary shall terminate or suspend the operation of the order or provision.

    (b) LIMITATION- The termination or suspension of any order, or any provision of an order, shall not be considered an order under this subtitle.

SEC. 953. REGULATIONS.

    The Secretary may issue such regulations as are necessary to carry out this subtitle.

SEC. 954. AUTHORIZATION OF APPROPRIATIONS.

    There are authorized to be appropriated such funds as are necessary to carry out this subtitle for each fiscal year.

Subtitle D--Commodity Promotion and Evaluation

SEC. 961. COMMODITY PROMOTION AND EVALUATION.

    (a) FINDINGS- Congress finds that--

      (1) it is in the national public interest and vital to the welfare of the agricultural economy of the United States to expand and develop markets for agricultural commodities through generic, industry-funded promotion programs;

      (2) the programs play a unique role in advancing the demand for agricultural commodities, since the programs increase the total market for a product to the benefit of consumers and all producers;

      (3) the programs complement branded advertising initiatives, which are aimed at increasing the market share of individual competitors;

      (4) the programs are of particular benefit to small producers, who may lack the resources or market power to advertise on their own;

      (5) the programs do not impede the branded advertising efforts of individual firms but instead increase market demand by methods that each individual entity would not have the incentive to employ;

      (6) the programs, paid for by the producers who directly reap the benefits of the programs, provide a unique opportunity for agricultural producers to inform consumers about their products;

      (7) it is important to ensure that the programs be carried out in an effective and coordinated manner that is designed to strengthen the position of the commodities in the marketplace and to maintain and expand the markets and uses of the commodities; and

      (8) independent evaluation of the effectiveness of the programs will assist Congress and the Secretary of Agriculture in ensuring that the objectives of the programs are met.

    (b) INDEPENDENT EVALUATIONS- Except as otherwise provided by law, and at such intervals as the Secretary of Agriculture may determine, but not more frequently than every 3 years or 3 years after the establishment of a program, the Secretary shall require that each industry-funded generic promotion program authorized by Federal law for an agricultural commodity shall provide for an independent evaluation of the program and the effectiveness of the program. The evaluation may include an analysis of benefits, costs, and the efficacy of promotional and research efforts under the program. The evaluation shall be funded from industry assessments and made available to the public.

    (c) ADMINISTRATIVE COSTS- The Secretary shall provide to Congress annually information on administrative expenses on programs referred to in subsection (b).

Passed the Senate February 7, 1996.

Attest:

Secretary.

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104th CONGRESS

2d Session

S. 1541

AN ACT

To extend, reform, and improve agricultural commodity, trade, conservation, and other programs, and for other purposes.