[Congressional Record Volume 158, Number 88 (Tuesday, June 12, 2012)]
[Senate]
[Pages S3985-S4107]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
TEXT OF AMENDMENTS
SA 2344. Mr. MENENDEZ submitted an amendment intended to be proposed
by him to the bill S. 3240, to reauthorize agricultural programs
through 2017, and for other purposes; which was ordered to lie on the
table; as follows:
On page 361, between lines 8 and 9, insert the following:
SEC. 4208. LEAN FINELY TEXTURED BEEF.
(a) School Meal Programs.--Section 14 of the Richard B.
Russell National School Lunch Act (42 U.S.C. 1762a) is
amended by adding at the end the following:
``(i) Lean Finely Textured Beef.--The Secretary shall give
States and school food authorities the option to purchase and
receive meat and meat food products that do not contain low-
temperature rendered product, also known as lean finely
textured beef (as defined by the Secretary), for use in
school meal programs under this Act and the Child Nutrition
Act of 1966 (42 U.S.C. 1771 et seq.).''.
(b) Labeling.--Section 1(n) of the Federal Meat Inspection
Act (21 U.S.C. 601(n)) is amended--
(1) in paragraph (11), by striking ``or'' at the end;
(2) in paragraph (12), by striking the period at the end
and inserting ``; or'' and
(3) by adding at the end the following:
``(13) if in a package or other container and at the final
point of sale the meat or meat food product contains low-
temperature rendered product, also known as lean finely
textured beef (as defined by the Secretary), unless the
package or other container bears a label stating that the
meat or meat food product contains the low-temperature
rendered product.''.
______
SA 2345. Mr. MANCHIN (for himself and Ms. Ayotte) submitted an
amendment intended to be proposed by him to the bill S. 3240, to
reauthorize agricultural programs through 2017, and for other purposes;
which was ordered to lie on the table; as follows:
On page 361, between lines 8 and 9, insert the following:
SEC. 4208. DIETARY GUIDELINES FOR AMERICANS.
Section 301(a) of the National Nutrition Monitoring and
Related Research Act of 1990 (7 U.S.C. 5341(a)) is amended by
adding at the end the following:
``(3) Pregnant women and young children.--Not later than
the 2020 report and in each report thereafter, the
Secretaries shall include national nutritional and dietary
information and guidelines for pregnant women and children
from birth until the age of 2.''.
______
SA 2346. Mr. GRAHAM submitted an amendment intended to be proposed by
him to the bill S. 3240, to reauthorize agricultural programs through
2017, and for other purposes; which was ordered to lie on the table; as
follows:
At the end of subtitle C of title XII, add the following:
SEC. 12205. SENSE OF CONGRESS ON NUCLEAR PROGRAM OF IRAN.
(a) Findings.--Congress makes the following findings:
(1) Since at least the late 1980s, the Government of the
Islamic Republic of Iran has engaged in a sustained and well-
documented pattern of illicit and deceptive activities to
acquire nuclear capability.
(2) The United Nations Security Council has adopted
multiple resolutions since 2006 demanding the full and
sustained suspension of all uranium enrichment-related and
reprocessing activities by the Government of the Islamic
Republic of Iran and its full cooperation with the
International Atomic Energy Agency (IAEA) on all outstanding
issues related to its nuclear activities, particularly those
concerning the possible military dimensions of its nuclear
program.
(3) On November 8, 2011, the IAEA issued an extensive
report that--
(A) documents ``serious concerns regarding possible
military dimensions to Iran's nuclear programme'';
(B) states that ``Iran has carried out activities relevant
to the development of a nuclear device''; and
(C) states that the efforts described in subparagraphs (A)
and (B) may be ongoing.
(4) As of November 2008, Iran had produced, according to
the IAEA--
(A) approximately 630 kilograms of uranium hexaflouride
enriched up to 3.5 percent uranium-235; and
(B) no uranium hexaflouride enriched up to 20 percent
uranium-235.
(5) As of November 2011, Iran had produced, according to
the IAEA--
(A) nearly 5,000 kilograms of uranium hexaflouride enriched
up to 3.5 percent uranium-235; and
(B) 79.7 kilograms of uranium hexaflouride enriched up to
20 percent uranium-235.
(6) On January 9, 2012, IAEA inspectors confirmed that the
Government of the Islamic Republic of Iran had begun
enrichment activities at the Fordow site, including possibly
enrichment of uranium hexaflouride up to 20 percent uranium-
235.
(7) Section 2(2) of the Comprehensive Iran Sanctions,
Accountability, and Divestment Act of 2010 (Public Law 111
195) states, ``The United States and other responsible
countries have a vital interest in working together to
prevent the Government of Iran from acquiring a nuclear
weapons capability.''
(8) If the Government of the Islamic Republic of Iran were
successful in acquiring a nuclear weapon capability, it would
likely spur other countries in the region to consider
developing their own nuclear weapons capabilities.
(9) On December 6, 2011, Prince Turki al-Faisal of Saudi
Arabia stated that if international efforts to prevent Iran
from obtaining nuclear weapons fail, ``we must, as a duty to
our country and people, look into all options we are given,
including obtaining these weapons ourselves''.
(10) Top leaders of the Government of the Islamic Republic
of Iran have repeatedly threatened the existence of the State
of Israel, pledging to ``wipe Israel off the map''.
(11) The Department of State has designated Iran as a state
sponsor of terrorism since 1984 and characterized Iran as the
``most active state sponsor of terrorism''.
(12) The Government of the Islamic Republic of Iran has
provided weapons, training, funding, and direction to
terrorist groups, including Hamas, Hezbollah, and Shiite
militias in Iraq that are responsible for the murders of
hundreds of United States forces and innocent civilians.
(13) On July 28, 2011, the Department of the Treasury
charged that the Government of Iran had forged a ``secret
deal'' with al Qaeda to facilitate the movement of al Qaeda
fighters and funding through Iranian territory.
(14) In October 2011, senior leaders of Iran's Islamic
Revolutionary Guard Corps (IRGC) Quds Force were implicated
in a terrorist plot to assassinate Saudi Arabia's Ambassador
to the United States on United States soil.
(15) On December 26, 2011, the United Nations General
Assembly passed a resolution denouncing the serious human
rights abuses occurring in the Islamic Republic of Iran,
including torture, cruel and degrading treatment in
detention, the targeting of human rights defenders, violence
against women, and ``the systematic and serious restrictions
on freedom of peaceful assembly'' as well as severe
restrictions on the rights to ``freedom of thought,
conscience, religion or belief''.
(16) President Barack Obama, through the P5+1 process, has
made repeated efforts to engage the Government of the Islamic
Republic of Iran in dialogue about Iran's nuclear program and
its international commitments under the Treaty on the Non-
Proliferation of Nuclear Weapons, done at Washington, London,
and Moscow July 1, 1968, and entered into force March 5, 1970
(commonly known as the ``Nuclear Non-Proliferation Treaty'').
(17) Representatives of the P5+1 countries (the United
States, France, Germany, the People's Republic of China, the
Russian Federation, and the United Kingdom) and
representatives of the Islamic Republic of Iran held
negotiations on Iran's nuclear program in Istanbul, Turkey on
April 14, 2012, and these discussions are set to resume in
Baghdad, Iraq on May 23, 2012.
(18) On March 31, 2010, President Obama stated that the
``consequences of a nuclear-armed Iran are unacceptable''.
(19) In his State of the Union Address on January 24, 2012,
President Obama stated, ``Let there be no doubt: America is
determined to prevent Iran from getting a nuclear weapon, and
I will take no options off the table to achieve that goal.''
(20) On March 4, 2012, President Obama stated ``Iran's
leaders should understand that I do not have a policy of
containment; I have a policy to prevent Iran from obtaining a
nuclear weapon''.
[[Page S3986]]
(21) Secretary of Defense Leon Panetta stated, in December
2011, that it was unacceptable for Iran to acquire nuclear
weapons, reaffirmed that all options were on the table to
thwart Iran's nuclear weapons efforts, and vowed that if the
United States gets ``intelligence that they are proceeding
with developing a nuclear weapon then we will take whatever
steps necessary to stop it''.
(22) The Department of Defense's January 2012 Strategic
Guidance stated that United States defense efforts in the
Middle East would be aimed ``to prevent Iran's development of
a nuclear weapons capability and counter its destabilizing
policies''.
(23) On April 2, 2012, President Obama stated, ``All the
evidence indicates that the Iranians are trying to develop
the capacity to develop nuclear weapons. They might decide
that, once they have that capacity that they'd hold off right
at the edge in order not to incur more sanctions. But, if
they've got nuclear weapons-building capacity and they are
flouting international resolutions, that creates huge
destabilizing effects in the region and will trigger an arms
race in the Middle East that is bad for U.S. national
security but is also bad for the entire world.''
(b) Sense of Congress.--Congress--
(1) reaffirms that the United States Government and the
governments of other responsible countries have a vital
interest in working together to prevent the Government of
Iran from acquiring a nuclear weapons capability;
(2) warns that time is limited to prevent the Government of
the Islamic Republic of Iran from acquiring a nuclear weapons
capability;
(3) urges continued and increasing economic and diplomatic
pressure on the Islamic Republic of Iran until the Government
of the Islamic Republic of Iran agrees to and implements--
(A) the full and sustained suspension of all uranium
enrichment-related and reprocessing activities and compliance
with United Nations Security Council resolutions;
(B) complete cooperation with the IAEA on all outstanding
questions related to the nuclear activities of the Government
of the Islamic Republic of Iran, including the implementation
of the additional protocol to Iran's Safeguards Agreement
with the IAEA; and
(C) a permanent agreement that verifiably assures that
Iran's nuclear program is entirely peaceful;
(4) expresses the desire that the P5+1 process successfully
and swiftly leads to the objectives identified in paragraph
(3), but warns that, as President Obama has said, the window
for diplomacy is closing;
(5) expresses support for the universal rights and
democratic aspirations of the people of Iran;
(6) strongly supports United States policy to prevent the
Government of the Islamic Republic of Iran from acquiring a
nuclear weapons capability;
(7) rejects any United States policy that would rely on
efforts to contain a nuclear weapons-capable Iran; and
(8) joins the President in ruling out any policy that would
rely on containment as an option in response to the Iranian
nuclear threat.
(c) Rule of Construction.--Nothing in this section shall be
construed as an authorization for the use of force or a
declaration of war.
______
SA 2347. Mr. NELSON of Nebraska submitted an amendment intended to be
proposed by him to the bill S. 3240, to reauthorize agricultural
programs through 2017, and for other purposes; which was ordered to lie
on the table; as follows:
On page 998, between lines 7 and 8, insert the following:
SEC. 12106. GRAZING ON PUBLIC RANGELANDS.
Section 6 of the Public Rangelands Improvement Act of 1978
(43 U.S.C. 1905) is amended--
(1) by striking the section heading and all that follows
through ``(a) For the'' and inserting the following:
``SEC. 6. GRAZING FEES.
``(a) Establishment of Fees.--
``(1) In general.--For the''; and
(2) in subsection (a), by adding at the end the following:
``(2) Grazing on public rangelands.--When establishing fees
for grazing private livestock on public rangelands, the
Secretary (with respect to land managed by the Bureau of Land
Management) and the Secretary of Agriculture (with respect to
National Forest System land) shall set the rate at a level
that is comparable to the current private grazing land lease
rate in the area or region, as determined by the applicable
Secretary.''.
______
SA 2348. Mr. NELSON of Nebraska submitted an amendment intended to be
proposed by him to the bill S. 3240, to reauthorize agricultural
programs through 2017, and for other purposes; which was ordered to lie
on the table; as follows:
On page 998, between lines 7 and 8, insert the following:
SEC. 12106. GRAZING ON NATIONAL FOREST SYSTEM LAND.
Section 6 of the Public Rangelands Improvement Act of 1978
(43 U.S.C. 1905) is amended--
(1) by striking the section heading and all that follows
through ``(a) For the'' and inserting the following:
``SEC. 6. GRAZING FEES.
``(a) Establishment of Fees.--
``(1) In general.--For the''; and
(2) in subsection (a), by adding at the end the following:
``(2) Grazing on national forest system land.--When
establishing fees for grazing private livestock on public
rangelands that is National Forest System land, the Secretary
of Agriculture shall set the rate at a level that is
comparable to the current private grazing land lease rate in
the area or region, as determined by the Secretary of
Agriculture.''.
______
SA 2349. Mr. GRASSLEY submitted an amendment intended to be proposed
by him to the bill S. 3240, to reauthorize agricultural programs
through 2017, and for other purposes; which was ordered to lie on the
table; as follows:
On page 140, strike line 1 and insert the following:
(b) Limitation on Marketing Loan Gains and Loan Deficiency
Payments for Peanuts and Other Covered Commodities.--Section
1001 of the Food Security Act of 1985 (7 U.S.C. 1308) is
amended by striking subsection (d) and inserting the
following:
``(d) Limitation on Marketing Loan Gains and Loan
Deficiency Payments for Peanuts and Other Covered
Commodities.--The total amount of marketing loan gains and
loan deficiency payments received, directly or indirectly, by
a person or legal entity (except a joint venture or general
partnership) for any crop year under subtitle B of the
Agriculture Reform, Food, and Jobs Act of 2012 (or a
successor provision) for 1 or more covered commodities may
not exceed $75,000.''.
(c) Conforming Amendments.--
On page 143, line 9, strike ``(c)'' and insert ``(d)''.
______
SA 2350. Mr. GRASSLEY submitted an amendment intended to be proposed
by him to the bill S. 3240, to reauthorize agricultural programs
through 2017, and for other purposes; which was ordered to lie on the
table; as follows:
Beginning on page 58, strike line 14 and all that follows
through page 59, line 23 and insert the following:
As soon as practicable after the date of enactment of this
Act, and on each October 1 thereafter, out of any funds in
the Treasury not otherwise appropriated, the Secretary of the
Treasury shall transfer to the Secretary--
(1) to be used to award grants under section 3601(b) of the
Consolidated Farm and Rural Development Act--
(A) $10,250,000 for fiscal year 2013; and
(B) $13,750,000 for each of fiscal years 2014 through 2017;
and
(2) to carry out the emergency food assistance program
established under the Emergency Food Assistance Act of 1983
(7 U.S.C. 7501 et seq.)--
(A) $10,250,000 for fiscal year 2013; and
(B) $13,750,000 for each of fiscal years 2014 through 2017.
______
SA 2351. Mr. GRASSLEY submitted an amendment intended to be proposed
by him to the bill S. 3240, to reauthorize agricultural programs
through 2017, and for other purposes; which was ordered to lie on the
table; as follows:
Beginning on page 34, strike line 4 and all that follows
through page 36, line 9.
______
SA 2352. Mr. COBURN submitted an amendment intended to be proposed by
him to the bill S. 3240, to reauthorize agricultural programs through
2017, and for other purposes; which was ordered to lie on the table; as
follows:
At the appropriate place, insert the following:
SEC. _____. STUDY; REPORT.
(a) Definition of Comptroller.--In this section, the term
``Comptroller'' means the Comptroller of the United States.
(b) Study.--Not later than 1 year after the date of
enactment of this Act, the Comptroller shall conduct an
independent study of domestic Federal nutrition programs--
(1) to identify--
(A) areas of duplication and inefficiencies after April 1,
2010; and
(B) programs that share the same goals, specific functions,
or features; and
(2) determine whether the express goals of the programs are
being accomplished in the most efficient way possible.
(c) Recommendations.--The Comptroller shall make specific
recommendations to consolidate or eliminate any duplicative
program or significantly inefficient program described in
subsection (b).
(d) Report.--Not later than 2 years after the date of
enactment of this Act, the Comptroller shall submit to
Congress a report that includes--
(1) the results of the study required under subsection (b);
and
(2) the recommendations described in subsection (c).
______
SA 2353. Mr. COBURN submitted an amendment intended to be proposed by
him to the bill S. 3240, to reauthorize agricultural programs through
2017, and for other purposes; which was ordered to lie on the table; as
follows:
At the appropriate place, insert the following:
[[Page S3987]]
SEC. _____. ELIMINATION OF CERTAIN WORKING LANDS CONSERVATION
PROGRAMS.
(a) Conservation Stewardship Program.--Subchapter B of
chapter 2 of subtitle D of title XII of the Food Security Act
of 1985 (16 U.S.C. 3838d et seq.) is repealed.
(b) Environmental Quality Incentives Program.--Chapter 4 of
subtitle D of title XII of the Food Security Act of 1985 (16
U.S.C. 3839aa et seq.) is repealed.
______
SA 2354. Mr. KYL submitted an amendment intended to be proposed by
him to the bill S. 3240, to reauthorize agricultural programs through
2017, and for other purposes; which was ordered to lie on the table; as
follows:
At the end of subtitle A of title III, add the following:
SEC. 3015. PROHIBITION ON ASSISTANCE FOR NORTH KOREA.
No amounts may be obligated or expended to provide
assistance under title II of the Food for Peace Act (7 U.S.C.
1721 et seq.) to the Democratic People's Republic of Korea.
______
SA 2355. Mr. BOOZMAN submitted an amendment intended to be proposed
by him to the bill S. 3240, to reauthorize agricultural programs
through 2017, and for other purposes; which was ordered to lie on the
table; as follows:
On page 860, between lines 15 and 16, insert the following:
SEC. 7602. OBJECTIVE AND SCHOLARLY AGRICULTURAL AND FOOD LAW
RESEARCH AND INFORMATION.
(a) Findings.--Congress finds that--
(1) the farms, ranches, and forests of the United States
are impacted by a complex and rapidly evolving web of
international, Federal, State, and local laws (including
regulations);
(2) objective, scholarly, and authoritative agricultural
and food law research and information helps the farm, ranch,
and forestry community contribute to the strength of the
United States through improved conservation, environmental
protection, job creation, economic development, renewable
energy production, outdoor recreational opportunities, and
increased local and regional supplies of food, fiber, and
fuel; and
(3) the vast agricultural community of the United States,
including farmers, ranchers, foresters, attorneys,
policymakers, and extension personnel, need access to
agricultural and food law research and information provided
by an objective, scholarly, and neutral source.
(b) Partnerships.--The Secretary, acting through the
National Agricultural Library, shall support the
dissemination of objective, scholarly, and authoritative
agricultural and food law research and information by
entering into partnerships with institutions of higher
education that have expertise in agricultural and food law
research and information.
(c) Restriction.--For each fiscal year, the Secretary shall
use not more than $1,000,000 of the amounts made available to
the National Agricultural Library to carry out this section.
______
SA 2356. Mr. BOOZMAN submitted an amendment intended to be proposed
by him to the bill S. 3240, to reauthorize agricultural programs
through 2017, and for other purposes; which was ordered to lie on the
table; as follows:
On page 1009, after line 11, add the following:
SEC. 12207. EXEMPTION OF RURAL WATER PROJECTS FROM CERTAIN
RENTAL FEES.
Section 504(g) of the Federal Land Policy and Management
Act of 1976 (43 U.S.C. 1764(g)) is amended in the eighth
sentence by inserting ``and for any rural water project that
is federally financed (including a project that receives
Federal funds under the Consolidated Farm and Rural
Development Act (7 U.S.C. 1921 et seq.) or from a State
drinking water treatment revolving loan fund established
under section 1452 of the Safe Drinking Water Act (42 U.S.C.
300j 12))'' after ``such facilities''.
______
SA 2357. Mr. BOOZMAN submitted an amendment intended to be proposed
by him to the bill S. 3240, to reauthorize agricultural programs
through 2017, and for other purposes; which was ordered to lie on the
table; as follows:
At the end of title XII, add the following:
Subtitle D--Congressional Review of Agency Rulemaking in Cases of
Negative Effect on Access to Affordable Food
SEC. 12301. CONGRESSIONAL REVIEW OF AGENCY RULEMAKING IN
CASES OF NEGATIVE EFFECT ON ACCESS TO
AFFORDABLE FOOD.
Effective beginning on the date of enactment of this Act,
if the Secretary determines that a rule promulgated by any
Federal agency could have a negative effect on access by any
individual to affordable food, the procedures described in
this subtitle shall take effect.
SEC. 12302. CONGRESSIONAL REVIEW.
(a)(1)(A) Before a rule may take effect, the Federal agency
promulgating such rule shall submit to each House of the
Congress and to the Comptroller General a report containing--
(i) a copy of the rule;
(ii) a concise general statement relating to the rule;
(iii) a classification of the rule as a major or nonmajor
rule, including an explanation of the classification
specifically addressing each criteria for a major rule
contained within subparagraphs (A) through (C) of section
12305(2);
(iv) a list of any other related regulatory actions
intended to implement the same statutory provision or
regulatory objective as well as the individual and aggregate
economic effects of those actions; and
(v) the proposed effective date of the rule.
(B) On the date of the submission of the report under
subparagraph (A), the Federal agency promulgating the rule
shall submit to the Comptroller General and make available to
each House of Congress--
(i) a complete copy of the cost-benefit analysis of the
rule, if any, including an analysis of any jobs added or
lost, differentiating between public and private sector jobs;
(ii) the agency's actions pursuant to sections 603, 604,
605, 607, and 609 of title 5, United States Code;
(iii) the agency's actions pursuant to sections 202, 203,
204, and 205 of the Unfunded Mandates Reform Act of 1995; and
(iv) any other relevant information or requirements under
any other Act and any relevant Executive orders.
(C) Upon receipt of a report submitted under subparagraph
(A), each House shall provide copies of the report to the
chairman and ranking member of each standing committee with
jurisdiction under the rules of the House of Representatives
or the Senate to report a bill to amend the provision of law
under which the rule is issued.
(2)(A) The Comptroller General shall provide a report on
each major rule to the committees of jurisdiction by the end
of 15 calendar days after the submission or publication date
as provided in section 12303(b)(2). The report of the
Comptroller General shall include an assessment of the
agency's compliance with procedural steps required by
paragraph (1)(B).
(B) Federal agencies shall cooperate with the Comptroller
General by providing information relevant to the Comptroller
General's report under subparagraph (A).
(3) A major rule relating to a report submitted under
paragraph (1) shall take effect upon enactment of a joint
resolution of approval described in section 12303 or as
provided for in the rule following enactment of a joint
resolution of approval described in section 12303, whichever
is later.
(4) A nonmajor rule shall take effect as provided by
section 12304 after submission to Congress under paragraph
(1).
(5) If a joint resolution of approval relating to a major
rule is not enacted within the period provided in subsection
(b)(2), then a joint resolution of approval relating to the
same rule may not be considered under this subtitle in the
same Congress by either the House of Representatives or the
Senate.
(b)(1) A major rule shall not take effect unless the
Congress enacts a joint resolution of approval described
under section 12303.
(2) If a joint resolution described in subsection (a) is
not enacted into law by the end of 70 session days or
legislative days, as applicable, beginning on the date on
which the report referred to in subsection (a)(1)(A) is
received by Congress (excluding days either House of Congress
is adjourned for more than 3 days during a session of
Congress), then the rule described in that resolution shall
be deemed not to be approved and such rule shall not take
effect.
(c)(1) Notwithstanding any other provision of this section
(except subject to paragraph (3)), a major rule may take
effect for one 90-calendar-day period if the President makes
a determination under paragraph (2) and submits written
notice of such determination to the Congress.
(2) Paragraph (1) applies to a determination made by the
President by Executive order that the major rule should take
effect because such rule is--
(A) necessary because of an imminent threat to health or
safety or other emergency;
(B) necessary for the enforcement of criminal laws;
(C) necessary for national security; or
(D) issued pursuant to any statute implementing an
international trade agreement.
(3) An exercise by the President of the authority under
this subsection shall have no effect on the procedures under
section 12303.
(d)(1) In addition to the opportunity for review otherwise
provided under this subtitle, in the case of any rule for
which a report was submitted in accordance with subsection
(a)(1)(A) during the period beginning on the date occurring--
(A) in the case of the Senate, 60 session days, or
(B) in the case of the House of Representatives, 60
legislative days,
before the date the Congress is scheduled to adjourn a
session of Congress through the date on which the same or
succeeding Congress first convenes its next session, sections
12303 and 12304 shall apply to such rule in the succeeding
session of Congress.
(2)(A) In applying sections 12303 and 12304 for purposes of
such additional review, a rule described under paragraph (1)
shall be treated as though--
(i) such rule were published in the Federal Register on--
(I) in the case of the Senate, the 15th session day, or
[[Page S3988]]
(II) in the case of the House of Representatives, the 15th
legislative day,
after the succeeding session of Congress first convenes; and
(ii) a report on such rule were submitted to Congress under
subsection (a)(1) on such date.
(B) Nothing in this paragraph shall be construed to affect
the requirement under subsection (a)(1) that a report shall
be submitted to Congress before a rule can take effect.
(3) A rule described under paragraph (1) shall take effect
as otherwise provided by law (including other subsections of
this section).
SEC. 12303. CONGRESSIONAL APPROVAL PROCEDURE FOR MAJOR RULES.
(a)(1) For purposes of this section, the term ``joint
resolution'' means only a joint resolution addressing a
report classifying a rule as major pursuant to section
12302(a)(1)(A)(iii) that--
(A) bears no preamble;
(B) bears the following title (with blanks filled as
appropriate): ``Approving the rule submitted by ___ relating
to ___.'';
(C) includes after its resolving clause only the following
(with blanks filled as appropriate): ``That Congress approves
the rule submitted by ___ relating to ___.''; and
(D) is introduced pursuant to paragraph (2).
(2) After a House of Congress receives a report classifying
a rule as major pursuant to section 12302(a)(1)(A)(iii), the
majority leader of that House (or his or her respective
designee) shall introduce (by request, if appropriate) a
joint resolution described in paragraph (1)--
(A) in the case of the House of Representatives, within
three legislative days; and
(B) in the case of the Senate, within three session days.
(3) A joint resolution described in paragraph (1) shall not
be subject to amendment at any stage of proceeding.
(b) A joint resolution described in subsection (a) shall be
referred in each House of Congress to the committees having
jurisdiction over the provision of law under which the rule
is issued.
(c) In the Senate, if the committee or committees to which
a joint resolution described in subsection (a) has been
referred have not reported it at the end of 15 session days
after its introduction, such committee or committees shall be
automatically discharged from further consideration of the
resolution and it shall be placed on the calendar. A vote on
final passage of the resolution shall be taken on or before
the close of the 15th session day after the resolution is
reported by the committee or committees to which it was
referred, or after such committee or committees have been
discharged from further consideration of the resolution.
(d)(1) In the Senate, when the committee or committees to
which a joint resolution is referred have reported, or when a
committee or committees are discharged (under subsection (c))
from further consideration of a joint resolution described in
subsection (a), it is at any time thereafter in order (even
though a previous motion to the same effect has been
disagreed to) for a motion to proceed to the consideration of
the joint resolution, and all points of order against the
joint resolution (and against consideration of the joint
resolution) are waived. The motion is not subject to
amendment, or to a motion to postpone, or to a motion to
proceed to the consideration of other business. A motion to
reconsider the vote by which the motion is agreed to or
disagreed to shall not be in order. If a motion to proceed to
the consideration of the joint resolution is agreed to, the
joint resolution shall remain the unfinished business of the
Senate until disposed of.
(2) In the Senate, debate on the joint resolution, and on
all debatable motions and appeals in connection therewith,
shall be limited to not more than 2 hours, which shall be
divided equally between those favoring and those opposing the
joint resolution. A motion to further limit debate is in
order and not debatable. An amendment to, or a motion to
postpone, or a motion to proceed to the consideration of
other business, or a motion to recommit the joint resolution
is not in order.
(3) In the Senate, immediately following the conclusion of
the debate on a joint resolution described in subsection (a),
and a single quorum call at the conclusion of the debate if
requested in accordance with the rules of the Senate, the
vote on final passage of the joint resolution shall occur.
(4) Appeals from the decisions of the Chair relating to the
application of the rules of the Senate to the procedure
relating to a joint resolution described in subsection (a)
shall be decided without debate.
(e) In the House of Representatives, if any committee to
which a joint resolution described in subsection (a) has been
referred has not reported it to the House at the end of 15
legislative days after its introduction, such committee shall
be discharged from further consideration of the joint
resolution, and it shall be placed on the appropriate
calendar. On the second and fourth Thursdays of each month it
shall be in order at any time for the Speaker to recognize a
Member who favors passage of a joint resolution that has
appeared on the calendar for at least 5 legislative days to
call up that joint resolution for immediate consideration in
the House without intervention of any point of order. When so
called up a joint resolution shall be considered as read and
shall be debatable for 1 hour equally divided and controlled
by the proponent and an opponent, and the previous question
shall be considered as ordered to its passage without
intervening motion. It shall not be in order to reconsider
the vote on passage. If a vote on final passage of the joint
resolution has not been taken by the third Thursday on which
the Speaker may recognize a Member under this subsection,
such vote shall be taken on that day.
(f)(1) If, before passing a joint resolution described in
subsection (a), one House receives from the other a joint
resolution having the same text, then--
(A) the joint resolution of the other House shall not be
referred to a committee; and
(B) the procedure in the receiving House shall be the same
as if no joint resolution had been received from the other
House until the vote on passage, when the joint resolution
received from the other House shall supplant the joint
resolution of the receiving House.
(2) This subsection shall not apply to the House of
Representatives if the joint resolution received from the
Senate is a revenue measure.
(g) If either House has not taken a vote on final passage
of the joint resolution by the last day of the period
described in section 12302(b)(2), then such vote shall be
taken on that day.
(h) This section and section 12304 are enacted by
Congress--
(1) as an exercise of the rulemaking power of the Senate
and House of Representatives, respectively, and as such is
deemed to be part of the rules of each House, respectively,
but applicable only with respect to the procedure to be
followed in that House in the case of a joint resolution
described in subsection (a) and superseding other rules only
where explicitly so; and
(2) with full recognition of the Constitutional right of
either House to change the rules (so far as they relate to
the procedure of that House) at any time, in the same manner
and to the same extent as in the case of any other rule of
that House.
SEC. 12304. CONGRESSIONAL DISAPPROVAL PROCEDURE FOR NONMAJOR
RULES.
(a) For purposes of this section, the term ``joint
resolution'' means only a joint resolution introduced in the
period beginning on the date on which the report referred to
in section 12302(a)(1)(A) is received by Congress and ending
60 days thereafter (excluding days either House of Congress
is adjourned for more than 3 days during a session of
Congress), the matter after the resolving clause of which is
as follows: ``That Congress disapproves the nonmajor rule
submitted by the ___ relating to ___, and such rule shall
have no force or effect.'' (The blank spaces being
appropriately filled in).
(b)(1) A joint resolution described in subsection (a) shall
be referred to the committees in each House of Congress with
jurisdiction.
(2) For purposes of this section, the term submission or
publication date means the later of the date on which--
(A) the Congress receives the report submitted under
section 12302(a)(1); or
(B) the nonmajor rule is published in the Federal Register,
if so published.
(c) In the Senate, if the committee to which is referred a
joint resolution described in subsection (a) has not reported
such joint resolution (or an identical joint resolution) at
the end of 15 session days after the date of introduction of
the joint resolution, such committee may be discharged from
further consideration of such joint resolution upon a
petition supported in writing by 30 Members of the Senate,
and such joint resolution shall be placed on the calendar.
(d)(1) In the Senate, when the committee to which a joint
resolution is referred has reported, or when a committee is
discharged (under subsection (c)) from further consideration
of a joint resolution described in subsection (a), it is at
any time thereafter in order (even though a previous motion
to the same effect has been disagreed to) for a motion to
proceed to the consideration of the joint resolution, and all
points of order against the joint resolution (and against
consideration of the joint resolution) are waived. The motion
is not subject to amendment, or to a motion to postpone, or
to a motion to proceed to the consideration of other
business. A motion to reconsider the vote by which the motion
is agreed to or disagreed to shall not be in order. If a
motion to proceed to the consideration of the joint
resolution is agreed to, the joint resolution shall remain
the unfinished business of the Senate until disposed of.
(2) In the Senate, debate on the joint resolution, and on
all debatable motions and appeals in connection therewith,
shall be limited to not more than 10 hours, which shall be
divided equally between those favoring and those opposing the
joint resolution. A motion to further limit debate is in
order and not debatable. An amendment to, or a motion to
postpone, or a motion to proceed to the consideration of
other business, or a motion to recommit the joint resolution
is not in order.
(3) In the Senate, immediately following the conclusion of
the debate on a joint resolution described in subsection (a),
and a single quorum call at the conclusion of the debate if
requested in accordance with the rules of the Senate, the
vote on final passage of the joint resolution shall occur.
(4) Appeals from the decisions of the Chair relating to the
application of the rules of the Senate to the procedure
relating to a joint resolution described in subsection (a)
shall be decided without debate.
[[Page S3989]]
(e) In the Senate the procedure specified in subsection (c)
or (d) shall not apply to the consideration of a joint
resolution respecting a nonmajor rule--
(1) after the expiration of the 60 session days beginning
with the applicable submission or publication date, or
(2) if the report under section 12302(a)(1)(A) was
submitted during the period referred to in section
12302(d)(1), after the expiration of the 60 session days
beginning on the 15th session day after the succeeding
session of Congress first convenes.
(f) If, before the passage by one House of a joint
resolution of that House described in subsection (a), that
House receives from the other House a joint resolution
described in subsection (a), then the following procedures
shall apply:
(1) The joint resolution of the other House shall not be
referred to a committee.
(2) With respect to a joint resolution described in
subsection (a) of the House receiving the joint resolution--
(A) the procedure in that House shall be the same as if no
joint resolution had been received from the other House; but
(B) the vote on final passage shall be on the joint
resolution of the other House.
SEC. 12305. DEFINITIONS.
In this subtitle:
(1) The term ``Federal agency'' means any agency as that
term is defined in section 551(1) of title 5, United States
Code.
(2) The term ``major rule'' means any rule, including an
interim final rule, that the Administrator of the Office of
Information and Regulatory Affairs of the Office of
Management and Budget finds has resulted in or is likely to
result in--
(A) an annual effect on the economy of $100,000,000 or
more;
(B) a major increase in costs or prices for consumers,
individual industries, Federal, State, or local government
agencies, or geographic regions; or
(C) significant adverse effects on competition, employment,
investment, productivity, innovation, or on the ability of
United States-based enterprises to compete with foreign-based
enterprises in domestic and export markets.
(3) The term ``nonmajor rule'' means any rule that is not a
major rule.
(4) The term ``rule'' has the meaning given such term in
section 551 of title 5, United States Code, except that such
term does not include--
(A) any rule of particular applicability, including a rule
that approves or prescribes for the future rates, wages,
prices, services, or allowances therefore, corporate or
financial structures, reorganizations, mergers, or
acquisitions thereof, or accounting practices or disclosures
bearing on any of the foregoing;
(B) any rule relating to agency management or personnel; or
(C) any rule of agency organization, procedure, or practice
that does not substantially affect the rights or obligations
of non-agency parties.
SEC. 12306. JUDICIAL REVIEW.
(a) No determination, finding, action, or omission under
this subtitle shall be subject to judicial review.
(b) Notwithstanding subsection (a), a court may determine
whether a Federal agency has completed the necessary
requirements under this subtitle for a rule to take effect.
(c) The enactment of a joint resolution of approval under
section 12303 shall not be interpreted to serve as a grant or
modification of statutory authority by Congress for the
promulgation of a rule, shall not extinguish or affect any
claim, whether substantive or procedural, against any alleged
defect in a rule, and shall not form part of the record
before the court in any judicial proceeding concerning a rule
except for purposes of determining whether or not the rule is
in effect.
SEC. 12307. EXEMPTION FOR MONETARY POLICY.
Nothing in this subtitle shall apply to rules that concern
monetary policy proposed or implemented by the Board of
Governors of the Federal Reserve System or the Federal Open
Market Committee.
SEC. 12308. EFFECTIVE DATE OF CERTAIN RULES.
Notwithstanding section 12302--
(1) any rule that establishes, modifies, opens, closes, or
conducts a regulatory program for a commercial, recreational,
or subsistence activity related to hunting, fishing, or
camping; or
(2) any rule other than a major rule which an agency for
good cause finds (and incorporates the finding and a brief
statement of reasons therefore in the rule issued) that
notice and public procedure thereon are impracticable,
unnecessary, or contrary to the public interest,
shall take effect at such time as the Federal agency
promulgating the rule determines.
______
SA 2358. Mr. BOOZMAN submitted an amendment intended to be proposed
by him to the bill S. 3240, to reauthorize agricultural programs
through 2017, and for other purposes; which was ordered to lie on the
table; as follows:
On page 1009, after line 11, add the following:
SEC. 12207. ATTORNEY FEE PAYMENT TRACKING.
(a) In General.--Not later than 180 days after the date of
enactment of this Act, the Secretary shall--
(1) in cooperation with the Attorney General and the
Secretary of Treasury, develop a system to track and report
attorney fee payment information in accordance with
subsections (b) and (c); and
(2) submit to the Committee on Agriculture and the
Committee on the Judiciary of the House of Representatives
and the Committee on Agriculture, Nutrition, and Forestry and
the Committee on the Judiciary of the Senate a report
describing the status of the implementation of the system.
(b) Requirements.--The system described in subsection
(a)(1) shall track for each case or administrative
adjudication in which the Secretary or Department of
Agriculture is a party--
(1) the case name;
(2) the party name;
(3) the amount of the claim;
(4) the date and amount of the award or payment of attorney
fees; and
(5) the law (including regulations) under which the case
was brought.
(c) Annual Reports.--Each year, the Secretary shall submit
to the Committees described in subsection (a)(2) a report
containing the information described in subsection (b).
______
SA 2359. Mr. BOOZMAN submitted an amendment intended to be proposed
by him to the bill S. 3240, to reauthorize agricultural programs
through 2017, and for other purposes; which was ordered to lie on the
table; as follows:
At the appropriate place, insert the following:
TITLE __--FARM, RANCH, AND FOREST LAND PRIVATE PROPERTY PROTECTION ACT
SEC. _01. SHORT TITLE.
This title may be cited as the ``Farm, Ranch, and Forest
Land Private Property Protection Act''.
SEC. _02. FINDINGS.
(a) Findings.--Congress finds the following:
(1) The founders realized the fundamental importance of
property rights when they codified the Takings Clause of the
Fifth Amendment to the Constitution, which requires that
private property shall not be taken `for public use, without
just compensation.
(2) Rural lands are unique in that they are not
traditionally considered high tax revenue-generating
properties for State and local governments. In addition,
farm, ranch, and forest land owners need to have long-term
certainty regarding their property rights in order to make
the investment decisions to commit land to these uses.
(3) Ownership rights in rural land are fundamental building
blocks for our Nation's agriculture industry, which continues
to be one of the most important economic sectors of our
economy.
(4) In the wake of the Supreme Court's decision in Kelo v.
City of New London, abuse of eminent domain is a threat to
the property rights of all private property owners, including
rural land owners.
(b) Sense of Congress.--It is the sense of Congress that
the use of eminent domain for the purpose of economic
development is a threat to agricultural and other property in
rural America and that the Congress should protect the
property rights of Americans, including those who reside in
rural areas. Property rights are central to liberty in this
country and to our economy. The use of eminent domain to take
farmland and other rural property for economic development
threatens liberty, rural economies, and the economy of the
United States. The taking of farmland and rural property will
have a direct impact on existing irrigation and reclamation
projects. Furthermore, the use of eminent domain to take
rural private property for private commercial uses will force
increasing numbers of activities from private property onto
this Nation's public lands, including its National forests,
National parks and wildlife refuges. This increase can
overburden the infrastructure of these lands, reducing the
enjoyment of such lands for all citizens. Americans should
not have to fear the government's taking their homes, farms,
or businesses to give to other persons. Governments should
not abuse the power of eminent domain to force rural property
owners from their land in order to develop rural land into
industrial and commercial property. Congress has a duty to
protect the property rights of rural Americans in the face of
eminent domain abuse.
SEC. _03. PROHIBITION ON EMINENT DOMAIN ABUSE BY STATES TO
CONFISCATE FARM, RANCH, OR FOREST LAND.
(a) In General.--No State or political subdivision of a
State shall exercise its power of eminent domain over farm,
ranch, or forest land, or allow the exercise of such power by
any person or entity to which such power has been delegated,
over property to be used for economic development or over
property that is used for economic development within 7 years
after that exercise, if that State or political subdivision
receives Federal economic development funds during any fiscal
year in which the property is so used or intended to be used.
(b) Ineligibility for Federal Funds.--A violation of
subsection (a) by a State or political subdivision shall
render such State or political subdivision ineligible for any
Federal economic development funds for a period of 2 fiscal
years following a final judgment on the merits by a court of
competent jurisdiction that such subsection has been
violated, and any Federal agency charged with distributing
those funds shall withhold them for such 2-year period, and
any such funds distributed to such State or political
subdivision shall be returned or reimbursed
[[Page S3990]]
by such State or political subdivision to the appropriate
Federal agency or authority of the Federal Government, or
component thereof.
(c) Opportunity To Cure Violation.--A State or political
subdivision shall not be ineligible for any Federal economic
development funds under subsection (b) if such State or
political subdivision returns all real property the taking of
which was found by a court of competent jurisdiction to have
constituted a violation of subsection (a) and replaces any
other property destroyed and repairs any other property
damaged as a result of such violation. In addition, the State
must pay applicable penalties and interest to reattain
eligibility.
SEC. _04. PROHIBITION ON EMINENT DOMAIN ABUSE BY THE FEDERAL
GOVERNMENT TO CONFISCATE FARM, RANCH, OR FOREST
LAND.
The Federal Government or any authority of the Federal
Government shall not exercise its power of eminent domain
over farm, ranch, or forest land to be used for economic
development.
SEC. _05. PRIVATE RIGHT OF ACTION.
(a) Cause of Action.--Any (1) owner of private farm, ranch,
or forest land whose property is subject to eminent domain
who suffers injury as a result of a violation of any
provision of this title with respect to that property, or (2)
any tenant of property that is subject to eminent domain who
suffers injury as a result of a violation of any provision of
this title with respect to that property, may bring an action
to enforce any provision of this title in the appropriate
Federal or State court. A State shall not be immune under the
11th Amendment to the Constitution of the United States from
any such action in a Federal or State court of competent
jurisdiction. In such action, the defendant has the burden to
show by clear and convincing evidence that the taking is not
for economic development. Any such property owner or tenant
may also seek an appropriate relief through a preliminary
injunction or a temporary restraining order.
(b) Limitation on Bringing Action.--An action brought by a
property owner or tenant under this title may be brought if
the property is used for economic development following the
conclusion of any condemnation proceedings condemning the
property of such property owner or tenant, but shall not be
brought later than seven years following the conclusion of
any such proceedings.
(c) Attorneys' Fee and Other Costs.--In any action or
proceeding under this title, the court shall allow a
prevailing plaintiff a reasonable attorneys' fee as part of
the costs, and include expert fees as part of the attorneys'
fee.
SEC. _06. REPORTING OF VIOLATIONS TO ATTORNEY GENERAL OR THE
SECRETARY OF AGRICULTURE.
(a) Submission of Report to Attorney General.--Any (1)
owner of private farm, ranch, or forest land whose property
is subject to eminent domain who suffers injury as a result
of a violation of any provision of this title with respect to
that property, or (2) any tenant of farm, ranch, or forest
land that is subject to eminent domain who suffers injury as
a result of a violation of any provision of this title with
respect to that property, may report a violation by the
Federal Government, any authority of the Federal Government,
State, or political subdivision of a State to the Attorney
General or the Secretary of Agriculture.
(b) Investigation by Attorney General.--Upon receiving a
report of an alleged violation, the Secretary of Agriculture
shall transmit the report to the Attorney General. Upon
receiving a report of an alleged violation from either a
property owner, tenant, or the Secretary of Agriculture, the
Attorney General shall conduct an investigation, in
cooperation with the Secretary of Agriculture, to determine
whether a violation exists.
(c) Notification of Violation.--If the Attorney General
concludes that a violation does exist, then the Attorney
General shall notify the Federal Government, authority of the
Federal Government, State, or political subdivision of a
State that the Attorney General has determined that it is in
violation of the title. The notification shall further
provide that the Federal Government, State, or political
subdivision of a State has 90 days from the date of the
notification to demonstrate to the Attorney General either
that (1) it is not in violation of the title or (2) that it
has cured its violation by returning all real property the
taking of which the Attorney General finds to have
constituted a violation of the title and replacing any other
property destroyed and repairing any other property damaged
as a result of such violation.
(d) Attorney General's Bringing of Action to Enforce
Title.--If, at the end of the 90-day period described in
subsection (c), the Attorney General determines that the
Federal Government, authority of the Federal Government,
State, or political subdivision of a State is still violating
the title or has not cured its violation as described in
subsection (c), then the Attorney General will bring an
action to enforce the title unless the property owner or
tenant who reported the violation has already brought an
action to enforce the title. In such a case, the Attorney
General shall intervene if it determines that intervention is
necessary in order to enforce the title. The Attorney General
may file its lawsuit to enforce the title in the appropriate
Federal or State court. A State shall not be immune under the
11th Amendment to the Constitution of the United States from
any such action in a Federal or State court of competent
jurisdiction. In such action, the defendant has the burden to
show by clear and convincing evidence that the taking is not
for economic development. The Attorney General may seek any
appropriate relief through a preliminary injunction or a
temporary restraining order.
(e) Limitation on Bringing Action.--An action brought by
the Attorney General under this title may be brought if the
property is used for economic development following the
conclusion of any condemnation proceedings condemning the
property of an owner or tenant who reports a violation of the
title to the Attorney General, but shall not be brought later
than seven years following the conclusion of any such
proceedings.
(f) Attorneys' Fee and Other Costs.--In any action or
proceeding under this title brought by the Attorney General,
the court shall, if the Attorney General is a prevailing
plaintiff, award the Attorney General a reasonable attorneys'
fee as part of the costs, and include expert fees as part of
the attorneys' fee.
SEC. _07. NOTIFICATION BY ATTORNEY GENERAL.
(a) Notification to States and Political Subdivisions.--
(1) Not later than 30 days after the enactment of this
title, the Attorney General shall provide to the chief
executive officer of each State the text of this title and a
description of the rights of property owners and tenants
under this title.
(2) Not later than 120 days after the enactment of this
title, the Attorney General shall compile a list of the
Federal laws under which Federal economic development funds
are distributed. The Attorney General shall compile annual
revisions of such list as necessary. Such list and any
successive revisions of such list shall be communicated by
the Attorney General to the chief executive officer of each
State and also made available on the Internet website
maintained by the United States Department of Justice for use
by the public and by the authorities in each State and
political subdivisions of each State empowered to take
private property and convert it to public use subject to just
compensation for the taking.
(b) Notification to Property Owners and Tenants.--Not later
than 30 days after the enactment of this title, the Attorney
General shall publish in the Federal Register and make
available on the Internet website maintained by the United
States Department of Justice a notice containing the text of
this title and a description of the rights of property owners
and tenants under this title.
SEC. _08. NOTIFICATION BY SECRETARY OF AGRICULTURE.
(a) Notification to Property Owners and Tenants.--Not later
than 60 days after the enactment of this title, the Secretary
of Agriculture shall publish in the Federal Register and make
available on the Internet website maintained by the United
States Department of Agriculture a notice containing the text
of this title and a description of the rights of property
owners and tenants under this title.
SEC. _09. REPORTS.
(a) By Attorney General.--Not later than 1 year after the
date of enactment of this title, and every subsequent year
thereafter, the Attorney General shall transmit a report
identifying States or political subdivisions that have used
eminent domain in violation of this title to the Chairman and
Ranking Member of the Committee on the Judiciary of the House
of Representatives, to the Chairman and Ranking Member of the
Committee on the Judiciary of the Senate, to the Chairman and
Ranking Member of the Committee on Agriculture, Nutrition,
and Forestry of the Senate, and to the Chairman and Ranking
Member of the Committee of Agriculture of the House. The
report shall--
(1) be developed in cooperation with the Secretary of
Agriculture;
(2) identify all private rights of action brought as a
result of a State's or political subdivision's violation of
this title;
(3) identify all violations reported by property owners and
tenants under section 5(c) of this title;
(4) identify the percentage of minority residents compared
to the surrounding nonminority residents and the median
incomes of those impacted by a violation of this title;
(5) identify all lawsuits brought by the Attorney General
under section 5(d) of this title;
(6) identify all States or political subdivisions that have
lost Federal economic development funds as a result of a
violation of this title, as well as describe the type and
amount of Federal economic development funds lost in each
State or political subdivision and the Agency that is
responsible for withholding such funds; and
(7) discuss all instances in which a State or political
subdivision has cured a violation as described in section
2(c) of this title.
(b) Duty of States.--Each State and local authority that is
subject to a private right of action under this title shall
have the duty to report to the Attorney General such
information with respect to such State and local authorities
as the Attorney General needs to make the report required
under subsection (a).
SEC. _10. DEFINITIONS.
In this title the following definitions apply:
(1) Economic development.--
[[Page S3991]]
(A) The term ``economic development'' means taking private
property, without the consent of the owner, and conveying or
leasing such property from one private person or entity to
another private person or entity for commercial enterprise
carried on for profit, or to increase tax revenue, tax base,
employment, or general economic health, except that such term
shall not include--
(i) conveying private property--
(I) to public ownership, such as for a road, hospital,
airport, or military base;
(II) to an entity, such as a common carrier, that makes the
property available to the general public as of right, such as
a railroad or public facility;
(III) for use as a road or other right of way or means,
open to the public for transportation, whether free or by
toll; and
(IV) for use as an aqueduct, flood control facility,
pipeline, or similar use;
(ii) removing harmful uses of land provided such uses
constitute an immediate threat to public health and safety;
(iii) leasing property to a private person or entity that
occupies an incidental part of public property or a public
facility, such as a retail establishment on the ground floor
of a public building;
(iv) acquiring abandoned property;
(v) clearing defective chains of title;
(vi) taking private property for use by a public utility,
including a utility providing electric, natural gas,
telecommunications, water, and wastewater services, either
directly to the public or indirectly through provision of
such services at the wholesale level for resale to the
public; and
(vii) redeveloping of a brownfield site as defined in the
Small Business Liability Relief and Brownfields
Revitalization Act (42 U.S.C. 9601(39)).
(B) Abandoned property.--In subparagraph (A)(iv), the term
``abandoned property'' means property --
(i) that has been substantially unoccupied or unused for
any commercial, agricultural, residential, or conservation-
oriented purpose for at least 1 year by a person with a legal
or equitable right to occupy the property;
(ii) that has not been maintained; and
(iii) for which property taxes have not been paid for at
least 2 years.
(2) Federal economic development funds.--The term ``Federal
economic development funds'' means any Federal funds
distributed to or through States or political subdivisions of
States under Federal laws designed to improve or increase the
size of the economies of States or political subdivisions of
States.
(3) State.--The term ``State'' means each of the several
States, the District of Columbia, the Commonwealth of Puerto
Rico, or any other territory or possession of the United
States.
SEC. _11. SEVERABILITY AND EFFECTIVE DATE.
(a) Severability.--The provisions of this title are
severable. If any provision of this title, or any application
thereof, is found unconstitutional, that finding shall not
affect any provision or application of the title not so
adjudicated.
(b) Effective Date.--This title shall take effect upon the
first day of the first fiscal year that begins after the date
of the enactment of this title, but shall not apply to any
project for which condemnation proceedings have been
initiated prior to the date of enactment.
SEC. _12. SENSE OF CONGRESS.
It is the policy of the United States to encourage,
support, and promote the private ownership of property and to
ensure that the constitutional and other legal rights of
private property owners are protected by the Federal
Government.
SEC. _13. BROAD CONSTRUCTION.
This title shall be construed in favor of a broad
protection of private property rights, to the maximum extent
permitted by the terms of this title and the Constitution.
SEC. _14. LIMITATION ON STATUTORY CONSTRUCTION.
Nothing in this title may be construed to supersede, limit,
or otherwise affect any provision of the Uniform Relocation
Assistance and Real Property Acquisition Policies Act of 1970
(42 U.S.C. 4601 et seq.).
SEC. _15. REPORT BY FEDERAL AGENCIES ON REGULATIONS AND
PROCEDURES RELATING TO EMINENT DOMAIN.
Not later than 180 days after the date of the enactment of
this title, the head of each Executive department and agency
shall review all rules, regulations, and procedures and
report to the Attorney General on the activities of that
department or agency to bring its rules, regulations and
procedures into compliance with this title.
SEC. _16. DISPROPORTIONATE IMPACT ON MINORITIES.
If the court determines that a violation of this title has
occurred, and that the violation has a disproportionately
high impact on the poor or minorities, the Attorney General
shall use reasonable efforts to locate and inform former
owners and tenants of the violation and any remedies they may
have.
______
SA 2360. Mr. BOOZMAN (for himself and Mr. Johanns) submitted an
amendment intended to be proposed by him to the bill S. 3240, to
reauthorize agricultural programs through 2017, and for other purposes;
which was ordered to lie on the table; as follows:
Strike subsection (a) of section 4012 and, at the
appropriate place in title IV, insert the following:
SEC. 4___. QUALITY CONTROL BONUSES.
(a) In General.--Section 16 of the Food and Nutrition Act
of 2008 (7 U.S.C. 2025) is amended by striking subsection
(d).
(b) Conforming Amendments.--Section 16 of the Food and
Nutrition Act of 2008 (7 U.S.C. 2025) is amended--
(1) in subsection (c)--
(A) in the first sentence of paragraph (4), by striking
``payment error rate'' and all that follows through
``subsection (d)'' and inserting ``liability amount or new
investment amount under paragraph (1) or payment error
rate''; and
(B) in the first sentence of paragraph (5), by striking
``payment error rate'' and all that follows through
``subsection (d)'' and inserting ``liability amount or new
investment amount under paragraph (1) or payment error
rate''; and
(2) in subsection (i)(1), by striking ``subsection (d)(1)''
and inserting ``subsection (c)(2)''.
SEC. 4___. EMERGENCY FOOD ASSISTANCE.
(a) Purchase of Commodities.--Section 27(a) of the Food and
Nutrition Act of 2008 (7 U.S.C. 2036(a)) is amended--
(1) in paragraph (1), by striking ``2008 through 2012'' and
inserting ``2012 through 2017''; and
(2) in paragraph (2)--
(A) by striking subparagraphs (A) and (B) and inserting the
following:
``(A) for fiscal year 2012, $260,000,000;
``(B) for fiscal year 2013, the dollar amount of
commodities specified in subparagraph (A) adjusted by the
percentage by which the thrifty food plan has been adjusted
under section 3(u)(4) between June 30, 2011 and June 30,
2012, and subsequently increased by $43,000,000; and''; and
(B) in subparagraph (C)--
(i) by striking ``2010 through 2012, the dollar amount of
commodities specified in'' and inserting ``2014 through 2017,
the total amount of commodities under''; and
(ii) by striking ``2008'' and inserting ``2012''.
______
SA 2361. Mr. BOOZMAN submitted an amendment intended to be proposed
by him to the bill S. 3240, to reauthorize agricultural programs
through 2017, and for other purposes; which was ordered to lie on the
table; as follows:
On page 652, between lines 3 and 4, insert the following:
``(c) Blender Pumps.--None of funds made available for
rural economic area partnership zones may be used to promote
the construction or use of blender pumps.
______
SA 2362. Mr. BROWN of Ohio (for himself, Mr. Nelson of Nebraska, Mr.
Franken, Mr. Sanders, Mr. Bingaman, Mr. Johnson of South Dakota, Mr.
Harkin, Mr. Leahy, Mr. Tester, Mr. Merkley, and Mr. Kerry) submitted an
amendment intended to be proposed by him to the bill S. 3240, to
reauthorize agricultural programs through 2017, and for other purposes;
which was ordered to lie on the table; as follows:
On page 574, between lines 11 and 12, insert the following:
``(C) Mandatory funding.--Of the funds of the Commodity
Credit Corporation, the Secretary shall use to carry out this
subsection $10,000,000 for each of fiscal years 2013 through
2017, to remain available until expended.
On page 606, between lines 4 and 5, insert the following:
``(E) Mandatory funding for fiscal years 2013 through
2017.--Of the funds of the Commodity Credit Corporation, the
Secretary shall use to carry out this paragraph $4,000,000
for each of fiscal years 2013 through 2017, to remain
available until expended.
On page 782, strike line 14 and insert the following:
through promulgation of an interim rule.
``(j) Funding.--Of the funds of the Commodity Credit
Corporation, the Secretary shall use to carry out this
section $10,000,000 for each of fiscal years 2013 through
2017, to remain available until expended.''.
SEC. 6203. FUNDING OF PENDING RURAL DEVELOPMENT LOAN AND
GRANT APPLICATIONS.
(a) In General.--The Secretary shall use funds made
available under subsection (b) to provide funds for
applications that are pending on the date of enactment of
this Act in accordance with the terms and conditions of
section 6029 of the Food, Conservation, and Energy Act of
2008 (Public Law 110 246; 122 Stat. 1955).
(b) Funding.--Notwithstanding any other provision of law,
of the funds of the Commodity Credit Corporation, the
Secretary shall use to carry out this section $100,000,000,
to remain available until expended.
On page 832, line 6, strike ``$50,000,000'' and insert
``$100,000,000''.
On page 989, line 9, strike ``$5,000,000'' and insert
``$15,000,000''.
______
SA 2363. Mr. VITTER submitted an amendment intended to be proposed by
him to the bill S. 3240, to reauthorize agricultural programs through
2017, and for other purposes; which was ordered to lie on the table; as
follows:
On page 1009, after line 11, add the following:
SEC. 12207. ANIMAL WELFARE.
Section 2(h) of the Animal Welfare Act (7 U.S.C. 2132(h))
is amended by adding ``an
[[Page S3992]]
owner of a common, domesticated household pet who derives
less than a substantial portion of income from a nonprimary
source (as determined by the Secretary) for exhibiting an
animal that exclusively resides at the residence of the pet
owner,'' after ``stores,''.
______
SA 2364. Mr. BINGAMAN (for himself and Mrs. Hutchison) submitted an
amendment intended to be proposed by him to the bill S. 3240, to
reauthorize agricultural programs through 2017, and for other purposes;
which was ordered to lie on the table; as follows:
On page 195, strike line 25 and all that follows through
page 196, line 16, and insert the following:
``life habitat under subsection (g).
``(3) Water quantity improvement.--For each of fiscal years
2013 through 2017, at least 10 percent of the funds made
available for payments under the program shall be used to
provide payments to producers to conserve surface water and
groundwater in accordance with subsection (h).'';
(5) by striking subsection (g) and inserting the following:
``(g) Wildlife Habitat Incentive Practice.--The Secretary
shall provide payments under the program for conservation
practices that support the restoration, development, and
improvement of wildlife habitat on eligible land, including--
``(1) upland wildlife habitat;
``(2) wetland wildlife habitat;
``(3) habitat for threatened and endangered species;
``(4) fish habitat;
``(5) habitat on pivot corners and other irregular areas of
a field; and
``(6) other types of wildlife habitat, as determined by the
Secretary.''; and
(6) in subsection (h), by adding at the end the following:
``(3) Use of funds.--
``(A) Practices.--The Secretary shall promote surface water
and groundwater conservation by providing assistance in the
form of cost-share payments, incentive payments, and loans to
producers to carry out eligible water conservation practices
with respect to the agricultural operations of producers--
``(i) to improve irrigation systems;
``(ii) to enhance irrigation efficiencies;
``(iii) to convert to--
``(I) the production of less water-intensive crops;
``(II) dryland farming; or
``(III) long-term grassland rotation;
``(iv) to improve the storage of water through measures
such as water banking and groundwater recharge;
``(v) to mitigate the effects of drought; and
``(vi) to carry out other measures that improve surface
water and groundwater conservation, as determined by the
Secretary, in the agricultural operations of the producers.
``(B) Allocation.--
``(i) In general.--Subject to clause (ii), in allocating
funds under this paragraph, the Secretary shall ensure that
not less than 50 percent shall be directed to groundwater
conservation in multistate aquifers based on the magnitude of
withdrawals from the multistate aquifers for irrigation
during the prior year and the historic groundwater level
reductions.
``(ii) Requirement.--In carrying out clause (i), the
Secretary shall provide assistance to producers to carry out
groundwater conservation practices in areas overlying those
portions of multistate aquifers that have experienced the
highest historic groundwater level reductions.''.
______
SA 2365. Mr. BEGICH (for himself and Mr. McCain) submitted an
amendment intended to be proposed by him to the bill S. 3240, to
reauthorize agricultural programs through 2017, and for other purposes;
which was ordered to lie on the table; as follows:
On page 980, between lines 12 and 13, insert the following:
SEC. 11024. DISCLOSURE IN THE PUBLIC INTEREST.
Section 502(c) of the Federal Crop Insurance Act (7 U.S.C.
1502(c)) is amended by striking paragraph (2) and inserting
the following:
``(2) Disclosure in the public interest.--
``(A) In general.--Notwithstanding paragraph (1) or any
other provision of law, except as provided in subparagraph
(B), the Secretary shall on an annual basis make available to
the public--
``(i)(I) the name of each individual or entity who obtained
a federally subsidized crop insurance, livestock, or forage
policy or plan of insurance during the previous fiscal year;
``(II) the amount of premium subsidy received by the
individual or entity from the Corporation; and
``(III) the amount of any Federal portion of indemnities
paid in the event of a loss during that fiscal year for each
policy associated with that individual or entity; and
``(ii) for each private insurance provider, by name--
``(I) the underwriting gains earned through participation
in the federally subsidized crop insurance program; and
``(II) the amount paid under this subtitle for--
``(aa) administrative and operating expenses;
``(bb) any Federal portion of indemnities and reinsurance;
and
``(cc) any other purpose.
``(B) Limitation.--The Secretary shall not disclose
information pertaining to individuals and entities covered by
a catastrophic risk protection plan offered under section
508(b).''.
______
SA 2366. Mrs. HAGAN submitted an amendment intended to be proposed by
her to the bill S. 3240, to reauthorize agricultural programs through
2017, and for other purposes; which was ordered to lie on the table; as
follows:
At the end of title XI, add the following:
SEC. 110__. GREATER ACCESSIBILITY FOR CROP INSURANCE.
(a) Findings.--Congress finds that--
(1) due to changes in commodity and other agricultural
programs made by the Agriculture Reform, Food, and Jobs Act
of 2012, it is more important than ever that agricultural
producers be able to fully understand the terms of plans and
policies of crop insurance offered under the Federal Crop
Insurance Act (7 U.S.C. 1501 et seq.); and
(2) proposed reductions by the Secretary in the number of
State and local offices of the Farm Service Agency will
reduce the services available to assist agricultural
producers in understanding crop insurance.
(b) Requirement for Use of Plain Language.--
(1) In general.--In issuing regulations and guidance
relating to plans and policies of crop insurance, the Risk
Management Agency and the Federal Crop Insurance Corporation
shall, to the greatest extent practicable, use plain
language, as required under Executive Orders 12866 (5 U.S.C.
601 note; relating to regulatory planning and review) and
12988 (28 U.S.C. 519 note; relating to civil justice reform).
(2) Report.--Not later than 180 days after the date of
enactment of this Act, the Secretary shall submit to the
Committee on Agriculture of the House of Representatives and
the Committee on Agriculture, Nutrition, and Forestry of the
Senate a report describing the efforts of the Secretary to
accelerate compliance with the Executive Orders described in
paragraph (1).
(c) Website.--
(1) In general.--Not later than 1 year after the date of
enactment of this Act, the Secretary, in consultation with
the approved insurance providers (as defined in section
502(b) of the Federal Crop Insurance Act (7 U.S.C. 1502(b)),
shall improve the existing Internet website through which
agricultural producers in any State may identify crop
insurance options in that State.
(2) Requirements.--The website described in paragraph (1)
shall--
(A) provide answers in an easily accessible format to
frequently asked questions; and
(B) include published materials of the Department of
Agriculture that relate to plans and policies of crop
insurance offered under that Act.
(d) Administration.--Nothing in this section authorizes the
Risk Management Agency to sell a crop insurance policy or
plan of insurance.
______
SA 2367. Mrs. HAGAN (for herself, Mr. Crapo, Mrs. McCaskill, Mr.
Risch, Mr. Pryor, Mr. Chambliss, Ms. Landrieu, and Mr. Vitter)
submitted an amendment intended to be proposed by her to the bill S.
3240, to reauthorize agricultural programs through 2017, and for other
purposes; which was ordered to lie on the table; as follows:
On page 1009, after line 11, add the following:
SEC. 12207. USE OF AUTHORIZED PESTICIDES; DISCHARGES OF
PESTICIDES; REPORT.
(a) Use of Authorized Pesticides.--Section 3(f) of the
Federal Insecticide, Fungicide, and Rodenticide Act (7 U.S.C.
136a(f)) is amended by adding at the end the following:
``(5) Use of authorized pesticides.--Except as provided in
section 402(s) of the Federal Water Pollution Control Act (33
U.S.C. 1342), the Administrator or a State shall not require
a permit under that Act for a discharge from a point source
into navigable waters of--
``(A) a pesticide authorized for sale, distribution, or use
under this Act; or
``(B) the residue of the pesticide, resulting from the
application of the pesticide.''.
(b) Discharges of Pesticides.--Section 402 of the Federal
Water Pollution Control Act (33 U.S.C. 1342) is amended by
adding at the end the following:
``(s) Discharges of Pesticides.--
``(1) No permit requirement.--Except as provided in
paragraph (2), a permit shall not be required by the
Administrator or a State under this Act for a discharge from
a point source into navigable waters of--
``(A) a pesticide authorized for sale, distribution, or use
under the Federal Insecticide, Fungicide, and Rodenticide Act
(7 U.S.C. 136 et seq.); or
``(B) the residue of the pesticide, resulting from the
application of the pesticide.
``(2) Exceptions.--Paragraph (1) shall not apply to the
following discharges of a pesticide or pesticide residue:
``(A) A discharge resulting from the application of a
pesticide in violation of a provision of the Federal
Insecticide, Fungicide, and Rodenticide Act (7 U.S.C. 136 et
seq.) relevant to protecting water quality if--
``(i) the discharge would not have occurred without the
violation; or
``(ii) the amount of pesticide or pesticide residue in the
discharge is greater than would have occurred without the
violation.
[[Page S3993]]
``(B) Stormwater discharges subject to regulation under
subsection (p).
``(C) The following discharges subject to regulation under
this section:
``(i) Manufacturing or industrial effluent.
``(ii) Treatment works effluent.
``(iii) Discharges incidental to the normal operation of a
vessel, including a discharge resulting from ballasting
operations or vessel biofouling prevention.''.
(c) Report.--Not later than 1 year after the date of
enactment of this Act, the Administrator of the Environmental
Protection Agency, in consultation with the Secretary of
Agriculture, shall submit a report to the Committee on
Environment and Public Works and the Committee on Agriculture
of the Senate and the Committee on Transportation and
Infrastructure and the Committee on Agriculture of the House
of Representatives that includes--
(1) the status of intra-agency coordination between the
Office of Water and the Office of Pesticide Programs of the
Environmental Protection Agency regarding streamlining
information collection, standards of review, and data use
relating to water quality impacts from the registration and
use of pesticides;
(2) an analysis of the effectiveness of current regulatory
actions relating to pesticide registration and use aimed at
protecting water quality; and
(3) any recommendations on how the Federal Insecticide,
Fungicide, and Rodenticide Act (7 U.S.C. 136 et seq.) can be
modified to better protect water quality and human health.
______
SA 2368. Mrs. GILLIBRAND submitted an amendment intended to be
proposed by her to the bill S. 3240, to reauthorize agricultural
programs through 2017, and for other purposes; which was ordered to lie
on the table; as follows:
On page 953, lines 6 through 8, strike ``for programs
administered or managed by the Risk Management Agency'' and
insert ``to increase the amount of the annual supplemental
nutrition assistance program consolidated block grants for
Puerto Rico and American Samoa under section 19 of the Food
and Nutrition Act of 2008 (7 U.S.C. 2028), in an amount not
to exceed an increase of 25 percent each fiscal year until
expended''.
______
SA 2369. Ms. CANTWELL submitted an amendment intended to be proposed
by her to the bill S. 3240, to reauthorize agricultural programs
through 2017, and for other purposes; which was ordered to lie on the
table; as follows:
At the end of subtitle C of title XII, add the following:
SEC. 12207. PULSE CROP PRODUCTS.
(a) Purpose.--The purpose of this section is to encourage
greater awareness and interest in the number and variety of
pulse crop products available to schoolchildren, as
recommended by the most recent Dietary Guidelines for
Americans published under section 301 of the National
Nutrition Monitoring and Related Research Act of 1990 (7
U.S.C. 5341).
(b) Definitions.--In this section:
(1) Eligible pulse crop.--The term ``eligible pulse crop''
means dry beans, dry peas, lentils, and chickpeas.
(2) Pulse crop product.--The term ``pulse crop product''
means a food product derived in whole or in part from an
eligible pulse crop.
(c) Purchase of Pulse Crops and Pulse Crop Products.--In
addition to the commodities delivered under section 6 of the
Richard B. Russell National School Lunch Act (42 U.S.C.
1755), the Secretary shall purchase eligible pulse crops and
pulse crop products for use in--
(1) the school lunch program established under the Richard
B. Russell National School Lunch Act (42 U.S.C. 1751 et
seq.); and
(2) the school breakfast program established by section 4
of the Child Nutrition Act of 1966 (42 U.S.C. 1773).
(d) Evaluation.--Not later than September 30, 2016, the
Secretary shall conduct an evaluation of the activities
conducted under subsection (c), including--
(1) an evaluation of whether children participating in the
school lunch and breakfast programs described in subsection
(c) increased overall consumption of eligible pulse crops as
a result of the activities;
(2) an evaluation of which eligible pulse crops and pulse
crop products are most acceptable for use in the school lunch
and breakfast programs;
(3) any recommendations of the Secretary regarding the
integration of the use of pulse crop products in carrying out
the school lunch and breakfast programs;
(4) an evaluation of any change in the nutrient composition
in the school lunch and breakfast programs due to the
activities; and
(5) an evaluation of any other outcomes determined to be
appropriate by the Secretary.
(e) Report.--As soon as practicable after the completion of
the evaluation under subsection (d), the Secretary shall
submit to the Committee on Agriculture, Nutrition, and
Forestry of the Senate and the Committee on Education and the
Workforce of the House of Representative a report describing
the results of the evaluation.
(f) Funding.--
(1) In general.--On October 1, 2013, out of any funds in
the Treasury not otherwise appropriated, the Secretary of the
Treasury shall transfer to the Secretary to carry out this
section $5,000,000.
(2) Receipt and acceptance.--The Secretary shall be
entitled to receive, shall accept, and shall use to carry out
this section the funds transferred under paragraph (1),
without further appropriation.
______
SA 2370. Ms. CANTWELL submitted an amendment intended to be proposed
by her to the bill S. 3240, to reauthorize agricultural programs
through 2017, and for other purposes; which was ordered to lie on the
table; as follows:
On page 361, between lines 8 and 9, insert the following:
SEC. 4208. PULSE CROP PRODUCTS.
(a) Purpose.--The purpose of this section is to encourage
greater awareness and interest in the number and variety of
pulse crop products available to schoolchildren, as
recommended by the most recent Dietary Guidelines for
Americans published under section 301 of the National
Nutrition Monitoring and Related Research Act of 1990 (7
U.S.C. 5341).
(b) Definitions.--In this section:
(1) Eligible pulse crop.--The term ``eligible pulse crop''
means dry beans, dry peas, lentils, and chickpeas.
(2) Pulse crop product.--The term ``pulse crop product''
means a food product derived in whole or in part from an
eligible pulse crop.
(c) Purchase of Pulse Crops and Pulse Crop Products.--In
addition to the commodities delivered under section 6 of the
Richard B. Russell National School Lunch Act (42 U.S.C.
1755), the Secretary shall purchase eligible pulse crops and
pulse crop products for use in--
(1) the school lunch program established under the Richard
B. Russell National School Lunch Act (42 U.S.C. 1751 et
seq.); and
(2) the school breakfast program established by section 4
of the Child Nutrition Act of 1966 (42 U.S.C. 1773).
(d) Evaluation.--Not later than September 30, 2016, the
Secretary shall conduct an evaluation of the activities
conducted under subsection (c), including--
(1) an evaluation of whether children participating in the
school lunch and breakfast programs described in subsection
(c) increased overall consumption of eligible pulse crops as
a result of the activities;
(2) an evaluation of which eligible pulse crops and pulse
crop products are most acceptable for use in the school lunch
and breakfast programs;
(3) any recommendations of the Secretary regarding the
integration of the use of pulse crop products in carrying out
the school lunch and breakfast programs;
(4) an evaluation of any change in the nutrient composition
in the school lunch and breakfast programs due to the
activities; and
(5) an evaluation of any other outcomes determined to be
appropriate by the Secretary.
(e) Report.--As soon as practicable after the completion of
the evaluation under subsection (d), the Secretary shall
submit to the Committee on Agriculture, Nutrition, and
Forestry of the Senate and the Committee on Education and the
Workforce of the House of Representative a report describing
the results of the evaluation.
(f) Authorization of Appropriations.--There is authorized
to be appropriated to carry out this section $10,000,000, to
remain available until expended.
______
SA 2371. Mr. MERKLEY (for himself and Ms. Collins) submitted an
amendment intended to be proposed by him to the bill S. 3240, to
reauthorize agricultural programs through 2017, and for other purposes;
which was ordered to lie on the table; as follows:
In section 8103, strike ``Section 7'' and all that follows
through ``inserting the following:'' and insert the
following:
Section 7 of the Cooperative Forestry Assistance Act of
1978 (16 U.S.C. 2103c) is amended--
(1) in subsection (l), by adding at the end the following:
``(4) State authorization.--
``(A) Definition of qualified organization.--In this
paragraph, a `qualified organization' means an organization--
``(i) defined in section 170(h)(3) of the Internal Revenue
Code of 1986; and
``(ii) organized for 1 or more of the purposes described in
section 170(h)(4)(A) of that Code.
``(B) Authorization.--The Secretary shall, at the request
of a State acting through the State lead agency, authorize
the State to allow qualified organizations to acquire, hold,
and manage conservation easements, using funds provided
through grants to the State under this subsection, for
purposes of the Forest Legacy Program in the State.
``(C) Eligibility.--To be eligible to acquire and manage
conservation easements under this paragraph, a qualified
organization shall demonstrate to the Secretary the abilities
necessary to acquire, monitor, and enforce interests in
forest land consistent with the Forest Legacy Program and the
assessment of need for the State.
``(D) Reversion.--
``(i) In general.--If the Secretary, or a State acting
through the State lead agency, makes any of the
determinations described in clause (ii) with respect to a
conservation easement acquired by a qualified organization
under subparagraph (B)--
[[Page S3994]]
``(I) all right, title, and interest of the qualified
organization in and to the conservation easement shall
terminate; and
``(II) all right, title, and interest in and to the
conservation easement shall revert to the State or other
qualified designee approved by the State.
``(ii) Determinations.--The determinations referred to in
clause (i) are that--
``(I) the qualified organization is unable to carry out the
responsibilities of the qualified organization under the
Forest Legacy Program in the State with respect to the
conservation easement;
``(II) the conservation easement has been modified or is
being administered in a way that is inconsistent with the
purposes of the Forest Legacy Program or the assessment of
need for the State; or
``(III) the conservation easement has been conveyed to
another person (other than a qualified organization approved
by the State and the Secretary).''; and
(2) by striking subsection (m) and inserting the following:
______
SA 2372. Mr. JOHANNS submitted an amendment intended to be proposed
by him to the bill S. 3240, to reauthorize agricultural programs
through 2017, and for other purposes; which was ordered to lie on the
table; as follows:
On page 1009, after line 11, add the following:
SEC. 122___. PROHIBITION ON AERIAL SURVEILLANCE OF
AGRICULTURAL OPERATIONS.
The Administrator of the Environmental Protection Agency
shall not conduct aerial surveillance to inspect agricultural
operations or to record images of agricultural operations.
______
SA 2373. Mr. WICKER (for himself, Mr. Conrad, Mr. Inhofe, Ms.
Landrieu, Mr. Cochran, and Mr. Tester) submitted an amendment intended
to be proposed by him to the bill S. 3240, to reauthorize agricultural
programs through 2017, and for other purposes; which was ordered to lie
on the table; as follows:
On page 1009, after line 11, add the following:
SECTION 12207. GRASSROOTS RURAL AND SMALL COMMUNITY WATER
SYSTEMS ASSISTANCE.
(a) Short Title.--This Section may be cited as the
``Grassroots Rural and Small Community Water Systems
Assistance Act''.
(b) Findings.--Congress finds that--
(1) the Safe Drinking Water Act Amendments of 1996 (Public
Law 104 182) authorized technical assistance for small and
rural communities to assist those communities in complying
with regulations promulgated pursuant to the Safe Drinking
Water Act (42 U.S.C. 300f et seq.);
(2) technical assistance and compliance training--
(A) ensures that Federal regulations do not overwhelm the
resources of small and rural communities; and
(B) provides small and rural communities lacking technical
resources with the necessary skills to improve and protect
water resources;
(3) across the United States, more than 90 percent of the
community water systems serve a population of less than
10,000 individuals;
(4) small and rural communities have the greatest
difficulty providing safe, affordable public drinking water
and wastewater services due to limited economies of scale and
lack of technical expertise; and
(5) in addition to being the main source of compliance
assistance, small and rural water technical assistance has
been the main source of emergency response assistance in
small and rural communities.
(c) Sense of Congress.--It is the sense of Congress that--
(1) to most effectively assist small and rural communities,
the Environmental Protection Agency should prioritize the
types of technical assistance that are most beneficial to
those communities, based on input from those communities; and
(2) local support is the key to making Federal assistance
initiatives work in small and rural communities to the
maximum benefit.
(d) Funding Priorities.--Section 1442(e) of the Safe
Drinking Water Act (42 U.S.C. 300j 1(e)) is amended--
(1) by designating the first through seventh sentences as
paragraphs (1) through (7), respectively;
(2) in paragraph (5) (as so designated), by striking ``1997
through 2003'' and inserting ``2012 through 2017''; and
(3) by adding at the end the following:
``(8) Nonprofit organizations.--
``(A) In general.--The Administrator may use amounts made
available to carry out this section to provide technical
assistance to nonprofit organizations that provide to small
public water systems onsite technical assistance, circuit-
rider technical assistance programs, onsite and regional
training, assistance with implementing source water
protection plans, and assistance with implementation
monitoring plans, rules, regulations, and water security
enhancements.
``(B) Preference.--To ensure that technical assistance
funding is used in a manner that is most beneficial to the
small and rural communities of a State, the Administrator
shall give preference under this paragraph to nonprofit
organizations that, as determined by the Administrator, are
the most qualified and experienced and that the small
community water systems in that State find to be the most
beneficial and effective.
``(9) Consultation.--In carrying out paragraphs (1) through
(3), the Administrator may consult or coordinate with the
Secretary of Agriculture, acting through the Under Secretary
of Rural Development.''.
______
SA 2374. Mr. DeMINT submitted an amendment intended to be proposed by
him to the bill S. 3240, to reauthorize agricultural programs through
2017, and for other purposes; which was ordered to lie on the table; as
follows:
At the appropriate place, insert the following:
SEC. __. REPEAL OF DODD-FRANK ACT.
The Dodd-Frank Wall Street Reform and Consumer Protection
Act (Public Law 111 203) is repealed, and the provisions of
law amended by such Act are revived or restored as if such
Act had not been enacted.
______
SA 2375. Mr. MENENDEZ submitted an amendment intended to be proposed
by him to the bill S. 3240, to reauthorize agricultural programs
through 2017, and for other purposes; which was ordered to lie on the
table; as follows:
On page 361, between lines 8 and 9, insert the following:
SEC. 4208. LEAN FINELY TEXTURED BEEF.
Section 14 of the Richard B. Russell National School Lunch
Act (42 U.S.C. 1762a) is amended by adding at the end the
following:
``(i) Lean Finely Textured Beef.--The Secretary shall give
States and school food authorities the option to purchase and
receive meat and meat food products that do not contain low-
temperature rendered product, also known as lean finely
textured beef (as defined by the Secretary), for use in
school meal programs under this Act and the Child Nutrition
Act of 1966 (42 U.S.C. 1771 et seq.).''.
______
SA 2376. Mr. TOOMEY submitted an amendment intended to be proposed by
him to the bill S. 3240, to reauthorize agricultural programs through
2017, and for other purposes; which was ordered to lie on the table; as
follows:
Beginning on page 312, strike line 9 and all that follows
through page 339, line 15, and insert the following:
SEC. 4002. LIMITATION ON CATEGORICAL ELIGIBILITY.
(a) In General.--Section 5 of the Food and Nutrition Act of
2008 (7 U.S.C. 2014) is amended--
(1) in the second sentence of subsection (a), by striking
``households in which each member receives benefits'' and
inserting ``households in which each member receives cash
assistance''; and
(2) in subsection (j), by striking ``or who receives
benefits under a State program'' and inserting ``or who
receives cash assistance under a State program''.
(b) Effective Date.--The amendments made by this section
shall--
(1) take effect on the date of enactment of this Act; and
(2) only apply to certification periods that begin on or
after that date.
SEC. 4003. STANDARD UTILITY ALLOWANCE.
(a) Standard Utility Allowance.--Section 5 of the Food and
Nutrition Act of 2008 (7 U.S.C. 2014) is amended--
(1) in subsection (e)(6)(C), by striking clause (iv); and
(2) in subsection (k), by striking paragraph (4) and
inserting the following:
``(4) Third party energy assistance payments.--For purposes
of subsection (d)(1), a payment made under a State law (other
than a law referred to in paragraph (2)(G)) to provide energy
assistance to a household shall be considered money payable
directly to the household.''.
(b) Conforming Amendments.--Section 2605(f)(2) of the Low-
Income Home Energy Assistance Act of 1981 (42 U.S.C.
8624(f)(2)) is amended--
(1) in the matter preceding subparagraph (A), by striking
``and for purposes of determining any excess shelter expense
deduction under section 5(e) of the Food and Nutrition Act of
2008 (7 U.S.C. 2014(e))''; and
(2) in subparagraph (A), by inserting before the semicolon
the following: ``, except that such payments or allowances
shall not be considered to be expended for purposes of
determining any excess shelter expense deduction under
section 5(e)(6) of the Food and Nutrition Act of 2008 (7
U.S.C. 2014(e)(6))''.
(c) Effective Date.--The amendments made by this section
shall--
(1) take effect on the date of enactment of this Act; and
(2) only apply to certification periods that begin on or
after that date.
SEC. 4004. ELIGIBILITY DISQUALIFICATIONS.
Section 6(e)(3)(B) of Food and Nutrition Act of 2008 (7
U.S.C. 2015(e)(3)(B)) is amended by striking ``section'' and
inserting the following: ``section, subject to the condition
that the course or program of study--
``(i) is part of a program of career and technical
education (as defined in section 3 of the Carl D. Perkins
Career and Technical Education Act of 2006 (20 U.S.C. 2302))
that may be completed in not more than 4 years at an
institution of higher education (as defined in section 102 of
the Higher Education Act of 1965 (20 U.S.C. 1002)); or
[[Page S3995]]
``(ii) is limited to remedial courses, basic adult
education, literacy, or English as a second language;''.
SEC. 4005. ENDING SUPPLEMENTAL NUTRITION ASSISTANCE PROGRAM
BENEFITS FOR LOTTERY OR GAMBLING WINNERS.
(a) In General.--Section 6 of the Food and Nutrition Act of
2008 (7 U.S.C. 2015) is amended by adding at the end the
following:
``(r) Ineligibility for Benefits Due to Receipt of
Substantial Lottery or Gambling Winnings.--
``(1) In general.--Any household in which a member receives
substantial lottery or gambling winnings, as determined by
the Secretary, shall lose eligibility for benefits
immediately upon receipt of the winnings.
``(2) Duration of ineligibility.--A household described in
paragraph (1) shall remain ineligible for participation until
the household meets the allowable financial resources and
income eligibility requirements under subsections (c), (d),
(e), (f), (g), (i), (k), (l), (m), and (n) of section 5.
``(3) Agreements.--As determined by the Secretary, each
State agency, to the maximum extent practicable, shall
establish agreements with entities responsible for the
regulation or sponsorship of gaming in the State to determine
whether individuals participating in the supplemental
nutrition assistance program have received substantial
lottery or gambling winnings.''.
(b) Conforming Amendments.--Section 5(a) of the Food and
Nutrition Act of 2008 (7 U.S.C. 2014(a)) is amended in the
second sentence by striking ``sections 6(b), 6(d)(2), and
6(g)'' and inserting ``subsections (b), (d)(2), (g), and (r)
of section 6''.
SEC. 4006. RETAIL FOOD STORES.
(a) Definition of Retail Food Store.--Subsection (o)(1)(A)
of section 3 of the Food and Nutrition Act of 2008 (7 U.S.C.
2012) (as redesignated by section 4020(a)(4)) is amended by
striking ``at least 2'' and inserting ``at least 3''.
(b) Alternative Benefit Delivery.--Section 7(f) of the Food
and Nutrition Act of 2008 (7 U.S.C. 2016(f)) is amended--
(1) by striking paragraph (2) and inserting the following:
``(2) Imposition of costs.--
``(A) In general.--Except as provided in subparagraph (B),
the Secretary shall require participating retail food stores
(including restaurants participating in a State option
restaurant program intended to serve the elderly, disabled,
and homeless) to pay 100 percent of the costs of acquiring,
and arrange for the implementation of, electronic benefit
transfer point-of-sale equipment and supplies, including
related services.
``(B) Exemptions.--The Secretary may exempt from
subparagraph (A)--
``(i) farmers' markets, military commissaries, nonprofit
food buying cooperatives, and establishments, organizations,
programs, or group living arrangements described in
paragraphs (5), (7), and (8) of section 3(k); and
``(ii) establishments described in paragraphs (3), (4), and
(9) of section 3(k), other than restaurants participating in
a State option restaurant program.''; and
(2) by adding at the end the following:
``(4) Termination of manual vouchers.--
``(A) In general.--Effective beginning on the date of
enactment of this paragraph, except as provided in
subparagraph (B), no State shall issue manual vouchers to a
household that receives supplemental nutrition assistance
under this Act or allow retail food stores to accept manual
vouchers as payment, unless the Secretary determines that the
manual vouchers are necessary, such as in the event of an
electronic benefit transfer system failure or a disaster
situation.
``(B) Exemptions.--The Secretary may exempt categories of
retail food stores or individual retail food stores from
subparagraph (A) based on criteria established by the
Secretary.
``(5) Unique identification number required.--The Secretary
shall require all parties providing electronic benefit
transfer services to provide for and maintain unique terminal
identification number information through the supplemental
nutrition assistance program electronic benefit transfer
transaction routing system.''.
(c) Electronic Benefit Transfers.--Section 7(h)(3)(B) of
the Food and Nutrition Act of 2008 (7 U.S.C. 2016(h)(3)(B))
is amended by striking ``is operational--'' and all that
follows through ``(ii) in the case of other participating
stores,'' and inserting ``is operational''.
(d) Approval of Retail Food Stores and Wholesale Food
Concerns.--Section 9 of the Food and Nutrition Act of 2008 (7
U.S.C. 2018) is amended--
(1) in subsection (a)--
(A) in the second sentence of paragraph (a)(1), by striking
``; and (C)'' and inserting ``; (C) whether the applicant is
located in an area with significantly limited access to food;
and (D)''; and
(2) by adding at the end the following:
``(4) Retail food stores with significant sales of excepted
items.--
``(A) In general.--No retail food store for which at least
45 percent of the total sales of the retail food store is
from the sale of excepted items described in section 3(k)(1)
may be authorized to accept and redeem benefits unless the
Secretary determines that the participation of the retail
food store is required for the effective and efficient
operation of the supplemental nutrition assistance program.
``(B) Application.--Subparagraph (A) shall be effective--
``(i) in the case of retail food stores applying to be
authorized for the first time, beginning on the date that is
1 year after the date of enactment of this paragraph; and
``(ii) in the case of retail food stores participating in
the program on the date of enactment of this paragraph,
during periodic reauthorization in accordance with paragraph
(2)(A).''; and
(3) by adding at the end the following:
``(g) EBT Service Requirement.--An approved retail food
store shall provide adequate EBT service as described in
section 7(h)(3)(B).''.
SEC. 4007. IMPROVING SECURITY OF FOOD ASSISTANCE.
Section 7(h)(8) of the Food and Nutrition Act of 2008 (7
U.S.C. 2016(h)(8)) is amended--
(1) by striking the paragraph heading and inserting
``Replacement of cards.--'';
(2) by striking ``A State'' and inserting the following:
``(A) Fees.--A State''; and
(3) by adding after subparagraph (A) (as so designated by
paragraph (2)) the following:
``(B) Purposeful loss of cards.--
``(i) In general.--Subject to terms and conditions
established by the Secretary in accordance with clause (ii),
if a household makes excessive requests for replacement of
the electronic benefit transfer card of the household, the
Secretary may require a State agency to decline to issue a
replacement card to the household unless the household, upon
request of the State agency, provides an explanation for the
loss of the card.
``(ii) Requirements.--The terms and conditions established
by the Secretary shall provide that--
``(I) the household be given the opportunity to provide the
requested explanation and meet the requirements under this
paragraph promptly;
``(II) after an excessive number of lost cards, the head of
the household shall be required to review program rights and
responsibilities with State agency personnel authorized to
make determinations under section 5(a); and
``(III) any action taken, including actions required under
section 6(b)(2), other than the withholding of the electronic
benefit transfer card until an explanation described in
subclause (I) is provided, shall be consistent with the due
process protections under section 6(b) or 11(e)(10), as
appropriate.
``(C) Protecting vulnerable persons.--In implementing this
paragraph, a State agency shall act to protect homeless
persons, persons with disabilities, victims of crimes, and
other vulnerable persons who lose electronic benefit transfer
cards but are not intentionally committing fraud.
``(D) Effect on eligibility.--While a State may decline to
issue an electronic benefits transfer card until a household
satisfies the requirements under this paragraph, nothing in
this paragraph shall be considered a denial of, or limitation
on, the eligibility for benefits under section 5.''.
SEC. 4008. TECHNOLOGY MODERNIZATION FOR RETAIL FOOD STORES.
(a) Mobile Technologies.--Section 7(h) of the Food and
Nutrition Act of 2008 (7 U.S.C. 2016(h)) (as amended by
section 4020(e)) is amended by adding at the end the
following:
``(14) Mobile technologies.--
``(A) In general.--Subject to subparagraph (B), the
Secretary shall approve retail food stores to redeem benefits
through electronic means other than wired point of sale
devices for electronic benefit transfer transactions, if the
retail food stores--
``(i) establish recipient protections regarding privacy,
ease of use, access, and support similar to the protections
provided for transactions made in retail food stores;
``(ii) bear the costs of obtaining, installing, and
maintaining mobile technologies, including mechanisms needed
to process EBT cards and transaction fees;
``(iii) demonstrate the foods purchased with benefits
issued under this section through mobile technologies are
purchased at a price not higher than the price of the same
food purchased by other methods used by the retail food
store, as determined by the Secretary;
``(iv) provide adequate documentation for each authorized
transaction, as determined by the Secretary; and
``(v) meet other criteria as established by the Secretary.
``(B) Demonstration project on acceptance of benefits of
mobile transactions.--
``(i) In general.--Before authorizing implementation of
subparagraph (A) in all States, the Secretary shall pilot the
use of mobile technologies determined by the Secretary to be
appropriate to test the feasibility and implications for
program integrity, by allowing retail food stores to accept
benefits from recipients of supplemental nutrition assistance
through mobile transactions.
``(ii) Demonstration projects.--To be eligible to
participate in a demonstration project under clause (i), a
retail food store shall submit to the Secretary for approval
a plan that includes--
``(I) a description of the technology;
``(II) the manner by which the retail food store will
provide proof of the transaction to households;
``(III) the provision of data to the Secretary, consistent
with requirements established by the Secretary, in a manner
that allows the Secretary to evaluate the impact of the
demonstration on participant access, ease of use, and program
integrity; and
[[Page S3996]]
``(IV) such other criteria as the Secretary may require.
``(iii) Date of completion.--The demonstration projects
under this subparagraph shall be completed and final reports
submitted to the Secretary by not later than July 1, 2015.
``(C) Report to congress.--The Secretary shall--
``(i) by not later than January 1, 2016, authorize
implementation of subparagraph (A) in all States, unless the
Secretary makes a finding, based on the data provided under
subparagraph (B), that implementation in all States is not in
the best interest of the supplemental nutrition assistance
program; and
``(ii) if the determination made in clause (i) is not to
implement subparagraph (A) in all States, submit a report to
the Committee on Agriculture of the House of Representatives
and the Committee on Agriculture, Nutrition, and Forestry of
the Senate that includes the basis of the finding.''.
(b) Acceptance of Benefits Through On-line Transactions.--
(1) In general.--Section 7 of the Food and Nutrition Act of
2008 (7 U.S.C. 2016) is amended by adding at the end the
following:
``(k) Option to Accept Program Benefits Through On-line
Transactions.--
``(1) In general.--Subject to paragraph (4), the Secretary
shall approve retail food stores to accept benefits from
recipients of supplemental nutrition assistance through on-
line transactions.
``(2) Requirements to accept benefits.--A retail food store
seeking to accept benefits from recipients of supplemental
nutrition assistance through on-line transactions shall--
``(A) establish recipient protections regarding privacy,
ease of use, access, and support similar to the protections
provided for transactions made in retail food stores;
``(B) ensure benefits are not used to pay delivery,
ordering, convenience, or other fees or charges;
``(C) clearly notify participating households at the time a
food order is placed--
``(i) of any delivery, ordering, convenience, or other fee
or charge associated with the food purchase; and
``(ii) that any such fee cannot be paid with benefits
provided under this Act;
``(D) ensure the security of on-line transactions by using
the most effective technology available that the Secretary
considers appropriate and cost-effective and that is
comparable to the security of transactions at retail food
stores; and
``(E) meet other criteria as established by the Secretary.
``(3) State agency action.--Each State agency shall ensure
that recipients of supplemental nutrition assistance can use
benefits on-line as described in this subsection as
appropriate.
``(4) Demonstration project on acceptance of benefits
through on-line transactions.--
``(A) In general.--Before the Secretary authorizes
implementation of paragraph (1) in all States, the Secretary
shall carry out a number of demonstration projects as
determined by the Secretary to test the feasibility of
allowing retail food stores to accept benefits through on-
line transactions.
``(B) Demonstration projects.--To be eligible to
participate in a demonstration project under subparagraph
(A), a retail food store shall submit to the Secretary for
approval a plan that includes--
``(i) a method of ensuring that benefits may be used to
purchase only eligible items under this Act;
``(ii) a description of the method of educating participant
households about the availability and operation of on-line
purchasing;
``(iii) adequate testing of the on-line purchasing option
prior to implementation;
``(iv) the provision of data as requested by the Secretary
for purposes of analyzing the impact of the project on
participant access, ease of use, and program integrity;
``(v) reports on progress, challenges, and results, as
determined by the Secretary; and
``(vi) such other criteria, including security criteria, as
established by the Secretary.
``(C) Date of completion.--The demonstration projects under
this paragraph shall be completed and final reports submitted
to the Secretary by not later than July 1, 2015.
``(5) Report to congress.--The Secretary shall--
``(A) by not later than January 1, 2016, authorize
implementation of paragraph (1) in all States, unless the
Secretary makes a finding, based on the data provided under
paragraph (4), that implementation in all States is not in
the best interest of the supplemental nutrition assistance
program; and
``(B) if the determination made in subparagraph (A) is not
to implement in all States, submit a report to the Committee
on Agriculture of the House of Representatives and the
Committee on Agriculture, Nutrition, and Forestry of the
Senate that includes the basis of the finding.''.
(2) Conforming amendments.--
(A) Section 7(b) of the Food and Nutrition Act of 2008 (7
U.S.C. 2016(b)) is amended by striking ``purchase food in
retail food stores'' and inserting ``purchase food from
retail food stores''.
(B) Section 10 of the Food and Nutrition Act of 2008 (7
U.S.C. 2019) is amended in the first sentence by inserting
``retail food stores authorized to accept and redeem benefits
through on-line transactions shall be authorized to accept
benefits prior to the delivery of food if the delivery occurs
within a reasonable time of the purchase, as determined by
the Secretary,'' after ``food so purchased,''.
(c) Savings Clause.--Nothing in this section or an
amendment made by this section alter any requirements of the
Food and Nutrition Act of 2008 (7 U.S.C. 2011 et seq.) unless
specifically authorized in this section or an amendment made
by this section.
SEC. 4009. USE OF BENEFITS FOR PURCHASE OF COMMUNITY-
SUPPORTED AGRICULTURE SHARE.
Section 10 of the Food and Nutrition Act of 2008 (7 U.S.C.
2019) (as amended by section 4008(b)(2)(B)) is amended in the
first sentence by inserting ``agricultural producers who
market agricultural products directly to consumers shall be
authorized to redeem benefits for the initial cost of the
purchase of a community-supported agriculture share for an
appropriate time in advance of food delivery as determined by
the Secretary,'' after ``as determined by the Secretary,''.
SEC. 4010. RESTAURANT MEALS PROGRAM.
(a) In General.--Section 11(e) of the Food and Nutrition
Act of 2008 (7 U.S.C. 2020(e)) is amended--
(1) in paragraph (22), by striking ``and'' at the end;
(2) in paragraph (23), by striking the period at the end of
subparagraph (C) and inserting ``; and''; and
(3) by adding at the end the following:
``(24) if the State elects to carry out a program to
contract with private establishments to offer meals at
concessional prices, as described in paragraphs 3, 4, and 9
of section 3(k)--
``(A) the plans of the State agency for operating the
program, including--
``(i) documentation of a need that eligible homeless,
elderly, and disabled clients are underserved in a particular
geographic area;
``(ii) the manner by which the State agency will limit
participation to only those private establishments that the
State determines necessary to meet the need identified in
clause (i); and
``(iii) any other conditions the Secretary may prescribe,
such as the level of security necessary to ensure that only
eligible recipients participate in the program; and
``(B) a report by the State agency to the Secretary
annually, the schedule of which shall be established by the
Secretary, that includes--
``(i) the number of households and individual recipients
authorized to participate in the program, including any
information on whether the individual recipient is elderly,
disabled, or homeless; and
``(ii) an assessment of whether the program is meeting an
established need, as documented under subparagraph (A)(i).''.
(b) Approval of Retail Food Stores and Wholesale Food
Concerns.--Section 9 of the Food and Nutrition Act of 2008 (7
U.S.C. 2018) (as amended by section 4006(d)(3)) is amended by
adding at the end the following:
``(h) Private Establishments.--
``(1) In general.--Subject to paragraph (2), no private
establishment that contracts with a State agency to offer
meals at concessional prices as described in paragraphs 3, 4,
and 9 of section 3(k) may be authorized to accept and redeem
benefits unless the Secretary determines that the
participation of the private establishment is required to
meet a documented need in accordance with section 11(e)(24).
``(2) Existing contracts.--
``(A) In general.--If, on the day before the date of
enactment of this subsection, a State has entered into a
contract with a private establishment described in paragraph
(1) and the Secretary has not determined that the
participation of the private establishment is necessary to
meet a documented need in accordance with section 11(e)(24),
the Secretary shall allow the operation of the private
establishment to continue without that determination of need
for a period not to exceed 180 days from the date on which
the Secretary establishes determination criteria, by
regulation, under section 11(e)(24).
``(B) Justification.--If the Secretary makes a
determination to terminate a contract with a private
establishment that is in effect on the date of enactment of
this subsection, the Secretary shall provide justification to
the State in which the private establishment is located for
that termination.
``(3) Report to congress.--Not later than 90 days after
September 30, 2013, and 90 days after the last day of each
fiscal year thereafter, the Secretary shall report to the
Committee on Agriculture of the House of Representatives and
the Committee on Agriculture, Nutrition, and Forestry of the
Senate on the effectiveness of a program under this
subsection using any information received from States under
section 11(e)(24) as well as any other information the
Secretary may have relating to the manner in which benefits
are used.''.
(c) Conforming Amendments.--Section 3(k) of the Food and
Nutrition Act of 2008 (7 U.S.C. 2012(k)) is amended by
inserting ``subject to section 9(h)'' after ``concessional
prices'' each place it appears.
SEC. 4011. EMPLOYMENT AND TRAINING.
(a) Administrative Costs.--Section 16(a) of the Food and
Nutrition Act of 2008 (7 U.S.C. 2025(a)) is amended in the
matter preceding paragraph (1) by inserting ``(other than a
program carried out under section 6(d)(4) or 20)'' after
``supplemental nutrition assistance program''.
(b) Funding of Employment and Training Programs.--
[[Page S3997]]
(1) In general.--Section 16(h) of the Food and Nutrition
Act of 2008 (7 U.S.C. 2025(h)) is amended--
(A) in paragraph (1)(A), by striking ``for each fiscal year
under section 18(a)(1), $90,000,000 for each fiscal year.''
and inserting the following:
``under section 18(a)(1)--
``(B) for fiscal year 2013, $79,000,000; and
``(C) for each subsequent fiscal year, $90,000,000.'';
(B) by striking paragraphs (2) and (3); and
(C) by redesignating paragraphs (4) and (5) as paragraphs
(2) and (3), respectively.
(2) Conforming amendments.--
(A) Section 17(b)(1)(B)(iv)(III)(hh) of the Food and
Nutrition Act of 2008 (7 U.S.C. 2026(b)(1)(B)(iv)(III)(hh))
is amended by striking ``, (g), (h)(2), or (h)(3)'' and
inserting ``or (g)''.
(B) Section 22(d)(1)(B)(ii) of the Food and Nutrition Act
of 2008 (7 U.S.C. 2031(d)(1)(B)(ii)) is amended by striking
``, (g), (h)(2), and (h)(3)'' and inserting ``and (g)''.
(c) Workfare.--Section 20 of the Food and Nutrition Act of
2008 (7 U.S.C. 2029) is amended by striking subsection (g).
(d) Effective Date.--The amendments made by this section
shall--
(1) take effect on October 1, 2012; and
(2) apply only to certification periods that begin on or
after that date.
SEC. 4012. QUALITY CONTROL ERROR RATE DETERMINATION.
Section 16(c) of the Food and Nutrition Act of 2008 (7
U.S.C. 2025(c)) is amended by adding at the end the
following:
``(10) Tolerance level.--For the purposes of this
subsection, the Secretary shall set the tolerance level for
excluding small errors at $25.''.
SEC. 4013. REPEAL OF STATE BONUS PAYMENTS.
(a) In General.--Section 16 of the Food and Nutrition Act
of 2008 (7 U.S.C. 2025) is amended by striking subsection
(d).
(b) Effective Date.--The amendment made by this section
shall--
(1) take effect on October 1, 2012; and
(2) apply only to certification periods that begin on or
after that date.
SEC. 4014. AUTHORIZATION OF APPROPRIATIONS.
Section 18(a)(1) of the Food and Nutrition Act of 2008 (7
U.S.C. 2027(a)(1)) is amended in the first sentence by
striking ``2012'' and inserting ``2013''.
SEC. 4015. ASSISTANCE FOR COMMUNITY FOOD PROJECTS.
Section 25 of the Food and Nutrition Act of 2008 (7 U.S.C.
2034) is amended--
(1) in subsection (a)(1)(B)(ii)--
(A) by striking subclause (I); and
(B) by redesignating subclauses (II) and (III) as
subclauses (I) and (II), respectively; and
(2) in subsection (b), by adding at the end the following:
``(3) Funding.--
``(A) In general.--Out of any funds in the Treasury not
otherwise appropriated, the Secretary of the Treasury shall
transfer to the Secretary to carry out this section not less
than $5,000,000 for fiscal year 2013 and each fiscal year
thereafter.
``(B) Receipt and acceptance.--The Secretary shall be
entitled to receive, shall accept, and shall use to carry out
this section the funds transferred under subparagraph (A),
without further appropriation.
``(C) Maintenance of funding.--The funding provided under
subparagraph (A) shall supplement (and not supplant) other
Federal funding made available to the Secretary to carry out
this section.''.
SEC. 4016. EMERGENCY FOOD ASSISTANCE.
(a) Purchase of Commodities.--Section 27(a) of the Food and
Nutrition Act of 2008 (7 U.S.C. 2036(a)) is amended--
(1) in paragraph (1), by striking ``2008 through 2012'' and
inserting ``2012 through 2017'';
(2) by striking paragraph (2) and inserting the following:
``(2) Amounts.--The Secretary shall use to carry out
paragraph (1)--
``(A) for fiscal year 2012, $260,000,000; and
``(B) for each subsequent fiscal year, the dollar amount of
commodities specified in subparagraph (A) adjusted by the
percentage by which the thrifty food plan has been adjusted
under section 3(u)(4) between June 30, 2012, and June 30 of
the immediately preceding fiscal year, and subsequently
increased by--
``(i) for fiscal year 2013, $28,000,000;
``(ii) for fiscal year 2014, $24,000,000;
``(iii) for fiscal year 2015, $20,000,000;
``(iv) for fiscal year 2016, $18,000,000; and
``(v) for fiscal year 2017 and each fiscal year thereafter,
$10,000,000.''; and
(3) by adding at the end the following:
``(3) Funds availability.--For purposes of the funds
described in this subsection, the Secretary shall--
``(A) make the funds available for 2 fiscal years; and
``(B) allow States to carry over unexpended balances to the
next fiscal year pursuant to such terms and conditions as are
determined by the Secretary.''.
(b) Emergency Food Program Infrastructure Grants.--Section
209(d) of the Emergency Food Assistance Act of 1983 (7 U.S.C.
7511a(d)) is amended by striking ``2012'' and inserting
``2017''.
SEC. 4017. NUTRITION EDUCATION.
Section 28(b) of the Food and Nutrition Act of 2008 (7
U.S.C. 2036a(b)) is amended by inserting ``and physical
activity'' after ``healthy food choices''.
SEC. 4018. NUTRITION EDUCATION AND OBESITY INDEXING.
(a) In General.--Section 28(d)(1) of the Food and Nutrition
Act of 2008 (7 U.S.C. 2036a(d)(1)) is amended by striking
``years--'' and all that follows through the period at the
end, and inserting ``years, $375,000,000.''.
(b) Effective Date.--The amendment made by this section
shall--
(1) take effect on the date of enactment of this Act; and
(2) only apply to certification periods that begin on or
after that date.
SEC. 4019. RETAIL FOOD STORE AND RECIPIENT TRAFFICKING.
The Food and Nutrition Act of 2008 (7 U.S.C. 2011 et seq.)
is amended by adding at the end the following:
``SEC. 29. RETAIL FOOD STORE AND RECIPIENT TRAFFICKING.
``(a) Purpose.--The purpose of this section is to provide
the Department of Agriculture with additional resources to
prevent trafficking in violation of this Act by strengthening
recipient and retail food store program integrity.
``(b) Use of Funds.--Additional funds are provided under
this section to supplement the retail food store and
recipient integrity activities of the Department.
``(c) Funding.--
``(1) In general.--Out of any funds in the Treasury not
otherwise appropriated, the Secretary of the Treasury shall
transfer to the Secretary to carry out this section not less
than $18,500,000 for fiscal year 2013 and each fiscal year
thereafter.
``(2) Receipt and acceptance.--The Secretary shall be
entitled to receive, shall accept, and shall use to carry out
this section the funds transferred under paragraph (1),
without further appropriation.
``(3) Maintenance of funding.--The funding provided under
paragraph (1) shall supplement (and not supplant) other
Federal funding for programs carried out under this Act.''.
SEC. 4020. TECHNICAL AND CONFORMING AMENDMENTS.
______
SA 2377. Mr. TOOMEY submitted an amendment intended to be proposed by
him to the bill S. 3240, to reauthorize agricultural programs through
2017, and for other purposes; which was ordered to lie on the table; as
follows:
Beginning on page 312, strike line 9 and all that follows
through page 313, line 25, and insert the following:
SEC. 4002. LIMITATION ON CATEGORICAL ELIGIBILITY.
(a) In General.--Section 5 of the Food and Nutrition Act of
2008 (7 U.S.C. 2014) is amended--
(1) in the second sentence of subsection (a), by striking
``households in which each member receives benefits'' and
inserting ``households in which each member receives cash
assistance''; and
(2) in subsection (j), by striking ``or who receives
benefits under a State program'' and inserting ``or who
receives cash assistance under a State program''.
(b) Effective Date.--The amendments made by this section
shall--
(1) take effect on the date of enactment of this Act; and
(2) only apply to certification periods that begin on or
after that date.
SEC. 4003. STANDARD UTILITY ALLOWANCE.
(a) Standard Utility Allowance.--Section 5 of the Food and
Nutrition Act of 2008 (7 U.S.C. 2014) is amended--
(1) in subsection (e)(6)(C), by striking clause (iv); and
(2) in subsection (k), by striking paragraph (4) and
inserting the following:
``(4) Third party energy assistance payments.--For purposes
of subsection (d)(1), a payment made under a State law (other
than a law referred to in paragraph (2)(G)) to provide energy
assistance to a household shall be considered money payable
directly to the household.''.
(b) Conforming Amendments.--Section 2605(f)(2) of the Low-
Income Home Energy Assistance Act of 1981 (42 U.S.C.
8624(f)(2)) is amended--
(1) in the matter preceding subparagraph (A), by striking
``and for purposes of determining any excess shelter expense
deduction under section 5(e) of the Food and Nutrition Act of
2008 (7 U.S.C. 2014(e))''; and
(2) in subparagraph (A), by inserting before the semicolon
the following: ``, except that such payments or allowances
shall not be considered to be expended for purposes of
determining any excess shelter expense deduction under
section 5(e)(6) of the Food and Nutrition Act of 2008 (7
U.S.C. 2014(e)(6))''.
(c) Effective Date.--The amendments made by this section
shall--
(1) take effect on the date of enactment of this Act; and
(2) only apply to certification periods that begin on or
after that date.
On page 334, after line 22, insert the following:
SEC. 4010. EMPLOYMENT AND TRAINING.
(a) Administrative Costs.--Section 16(a) of the Food and
Nutrition Act of 2008 (7 U.S.C. 2025(a)) is amended in the
matter preceding paragraph (1) by inserting ``(other than a
program carried out under section 6(d)(4) or 20)'' after
``supplemental nutrition assistance program''.
(b) Funding of Employment and Training Programs.--
(1) In general.--Section 16(h) of the Food and Nutrition
Act of 2008 (7 U.S.C. 2025(h)) is amended--
[[Page S3998]]
(A) in paragraph (1)(A), by striking ``for each fiscal year
under section 18(a)(1), $90,000,000 for each fiscal year.''
and inserting the following:
``under section 18(a)(1)--
``(B) for fiscal year 2013, $79,000,000; and
``(C) for each subsequent fiscal year, $90,000,000.'';
(B) by striking paragraphs (2) and (3); and
(C) by redesignating paragraphs (4) and (5) as paragraphs
(2) and (3), respectively.
(2) Conforming amendments.--
(A) Section 17(b)(1)(B)(iv)(III)(hh) of the Food and
Nutrition Act of 2008 (7 U.S.C. 2026(b)(1)(B)(iv)(III)(hh))
is amended by striking ``, (g), (h)(2), or (h)(3)'' and
inserting ``or (g)''.
(B) Section 22(d)(1)(B)(ii) of the Food and Nutrition Act
of 2008 (7 U.S.C. 2031(d)(1)(B)(ii)) is amended by striking
``, (g), (h)(2), and (h)(3)'' and inserting ``and (g)''.
(c) Workfare.--Section 20 of the Food and Nutrition Act of
2008 (7 U.S.C. 2029) is amended by striking subsection (g).
(d) Effective Date.--The amendments made by this section
shall--
(1) take effect on October 1, 2012; and
(2) apply only to certification periods that begin on or
after that date.
On page 335, between lines 8 and 9, insert the following:
SEC. 4011. REPEAL OF STATE BONUS PAYMENTS.
(a) In General.--Section 16 of the Food and Nutrition Act
of 2008 (7 U.S.C. 2025) is amended by striking subsection
(d).
(b) Effective Date.--The amendment made by this section
shall--
(1) take effect on October 1, 2012; and
(2) apply only to certification periods that begin on or
after that date.
On page 335, line 12, strike ``2017'' and insert ``2013''.
On page 338, between lines 10 and 11, insert the following:
SEC. 4015. NUTRITION EDUCATION AND OBESITY INDEXING.
(a) In General.--Section 28(d)(1) of the Food and Nutrition
Act of 2008 (7 U.S.C. 2036a(d)(1)) is amended by striking
``years--'' and all that follows through the period at the
end, and inserting ``years, $375,000,000.''.
(b) Effective Date.--The amendment made by this section
shall--
(1) take effect on the date of enactment of this Act; and
(2) only apply to certification periods that begin on or
after that date.
On page 1009, after line 11, add the following:
SEC. 122___. AMERICAN REINVESTMENT AND RECOVERY ACT OF 2009
SUNSET.
(a) In General.--Section 101(a)(2) of title I of division A
of the American Recovery and Reinvestment Act of 2009 (Public
Law 111 5; 123 Stat. 120; 124 Stat. 2394; 124 Stat. 3265) is
amended by striking ``October 31, 2013'' and inserting ``June
30, 2012''.
(b) Effective Date.--The amendment made by this section
shall--
(1) take effect on the date of enactment of this Act; and
(2) only apply to certification periods that begin on or
after that date.
______
SA 2378. Mr. TOOMEY submitted an amendment intended to be proposed by
him to the bill S. 3240, to reauthorize agricultural programs through
2017, and for other purposes; which was ordered to lie on the table; as
follows:
On page 1009, after line 11, add the following:
SEC. 122___. AMERICAN REINVESTMENT AND RECOVERY ACT OF 2009
SUNSET.
(a) In General.--Section 101(a)(2) of title I of division A
of the American Recovery and Reinvestment Act of 2009 (Public
Law 111 5; 123 Stat. 120; 124 Stat. 2394; 124 Stat. 3265) is
amended by striking ``October 31, 2013'' and inserting ``June
30, 2012''.
(b) Effective Date.--The amendment made by this section
shall--
(1) take effect on the date of enactment of this Act; and
(2) only apply to certification periods that begin on or
after that date.
______
SA 2379. Mr. TOOMEY submitted an amendment intended to be proposed by
him to the bill S. 3240, to reauthorize agricultural programs through
2017, and for other purposes; which was ordered to lie on the table; as
follows:
Strike section 1602 and insert the following:
SEC. 1602. REPEAL OF PERMANENT PRICE SUPPORT AUTHORITY.
(a) Agricultural Adjustment Act of 1938.--The following
provisions of the Agricultural Adjustment Act of 1938 are
repealed:
(1) Parts II through V of subtitle B of title III (7 U.S.C.
1326 et seq.).
(2) Section 377 (7 U.S.C. 1377).
(3) Subtitle D of title III (7 U.S.C. 1379a et seq.).
(4) Title IV (7 U.S.C. 1401 et seq.).
(b) Agricultural Act of 1949.--The following provisions of
the Agricultural Act of 1949 are repealed:
(1) Section 101 (7 U.S.C. 1441).
(2) Section 103(a) (7 U.S.C. 1444(a)).
(3) Section 105 (7 U.S.C. 1444b).
(4) Section 107 (7 U.S.C. 1445a).
(5) Section 110 (7 U.S.C. 1445e).
(6) Section 112 (7 U.S.C. 1445g).
(7) Section 115 (7 U.S.C. 1445k).
(8) Section 201 (7 U.S.C. 1446).
(9) Title III (7 U.S.C. 1447 et seq.).
(10) Title IV (7 U.S.C. 1421 et seq.), other than sections
404, 412, and 416 (7 U.S.C. 1424, 1429, and 1431).
(11) Title V (7 U.S.C. 1461 et seq.).
(12) Title VI (7 U.S.C. 1471 et seq.).
(c) 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), is repealed.
(d) Effective Date.--The amendments made by this section
take effect on the date of enactment of this Act.
______
SA 2380. Mr. CRAPO submitted an amendment intended to be proposed by
him to the bill S. 3240, to reauthorize agricultural programs through
2017, and for other purposes; which was ordered to lie on the table; as
follows:
At the end of title VIII, insert the following:
SEC. 83__. EXEMPTION FROM PERMITTING REQUIREMENTS FOR
SILVICULTURAL ROADS.
Notwithstanding any other provision of law, the
Administrator of the Environmental Protection Agency shall
not require a permit under section 402 of the Federal Water
Pollution Control Act (33 U.S.C. 1342) or, either directly or
indirectly, require any State to require a permit for
discharges of stormwater runoff from--
(1) roads, the construction, use, or maintenance of which
are associated with silvicultural activities; or
(2) other silvicultural activities, including nursery
operations, site preparation, reforestation and subsequent
cultural treatment, thinning, prescribed burning, pest and
fire control, harvesting operations, or surface drainage.
______
SA 2381. Mr. MERKLEY submitted an amendment intended to be proposed
by him to the bill S. 3240, to reauthorize agricultural programs
through 2017, and for other purposes; which was ordered to lie on the
table; as follows:
On page 1009, after line 11, insert the following:
SEC. 122__. ASSISTANCE FOR FARMERS IMPACTED BY CANADA GEESE.
(a) Assistance for Landowners With Cropland Damaged by
Canada Geese.--
(1) In general.--Not later than 60 days after the date of
enactment of this Act, the Secretary, acting through the
Administrator of the Animal and Plant Health Inspection
Service, shall prepare and submit a report to Congress that
contains an assessment of the resources needed to direct
adequate personnel and equipment to assist landowners whose
cropland is damaged by Canada geese.
(2) Early action.--The Secretary, acting through the
Administrator of the Animal and Plant Health Inspection
Service and the Director of Wildlife Services, as applicable,
shall, to the extent practicable, direct more personnel and
equipment to respond to landowner requests for assistance
with respect to cropland that is being damaged by Canada
geese.
(b) Study on the Economic Impacts of Canada Geese.--
(1) In general.--Not later than 30 days after the date of
enactment of this Act, the Administrator of the National
Agricultural Statistics Service (referred to in this section
as ``the Administrator'') shall begin development of a study
to gather data and determine the economic impact of migratory
geese on farms located in significantly impacted States, as
determined by the Administrator.
(2) Initiation and duration.--The Administrator shall--
(A) initiate the migratory geese study described in
paragraph (1) not later than 180 days after the date of
enactment of this Act; and
(B) complete the study not later than 18 months after the
date of enactment of this Act.
(3) Considerations.--The study conducted under this section
shall consider--
(A) the effects migratory geese have on crop yields in any
significantly impacted States, including the annual estimated
loss for those States;
(B) which commodities are most affected by goose
depredation;
(C) which areas within the impacted States are most
affected by goose depredation; and
(D) the overall economic impact on Federal, State, and
local income as a result of goose depredation.
(4) Report.--
(A) In general.--After completion of the migratory geese
study conducted under this section, the Administrator shall
prepare and submit a report on the findings of the study to--
(i) the Director of the United States Fish and Wildlife
Service; and
(ii) Congress.
(B) Availability.--The Administrator shall make the report
described in paragraph (1) available to the public.
______
SA 2382. Mr. MERKLEY (for himself, Mrs. Feinstein, Mr. Sanders, and
Mr. Kerry) submitted an amendment intended to be proposed by him to the
bill S. 3240, to reauthorize agricultural programs through 2017, and
for other purposes; which was ordered to lie on the table; as follows:
On page 970, between lines 5 and 6, insert the following:
[[Page S3999]]
SEC. 11019. CROP INSURANCE FOR ORGANIC CROPS.
(a) In General.--Section 508(c)(6) of the Federal Crop
Insurance Act (7 U.S.C. 1508(c)(6)) is amended by adding at
the end the following:
``(D) Organic crops.--
``(i) In general.--As soon as possible, but not later than
the 2015 reinsurance year, the Corporation shall offer
producers of organic crops price elections for all organic
crops produced in compliance with standards issued by the
Department of Agriculture under the national organic program
established under the Organic Foods Production Act of 1990 (7
U.S.C. 6501 et seq.) that reflect the actual retail or
wholesale prices, as appropriate, received by producers for
organic crops, as determined by the Secretary using all
relevant sources of information.
``(ii) Annual report.--The Corporation shall submit to the
Committee on Agriculture of the House of Representatives and
the Committee on Agriculture, Nutrition, and Forestry of the
Senate an annual report on progress made in developing and
improving Federal crop insurance for organic crops,
including--
``(I) the numbers and varieties of organic crops insured;
``(II) the progress of implementing the price elections
required under this subparagraph, including the rate at which
additional price elections are adopted for organic crops;
``(III) the development of new insurance approaches
relevant to organic producers; and
``(IV) any recommendations the Corporation considers
appropriate to improve Federal crop insurance coverage for
organic crops.''.
(b) Conforming Amendment.--Section 522(c) of the Federal
Crop Insurance Act (7 U.S.C. 1522(c)) (as amended by section
11018) is amended--
(1) by striking paragraph (10); and
(2) by redesignating paragraphs (11) through (20) as
paragraphs (10) through (19), respectively.
______
SA 2383. Mr. COCHRAN submitted an amendment intended to be proposed
by him to the bill S. 3240, to reauthorize agricultural programs
through 2017, and for other purposes; which was ordered to lie on the
table; as follows:
At the appropriate place, add the following:
SEC. 122___. AUTHORIZATION OF CONVEYANCE OF CERTAIN LAND TO
THE VICKSBURG NATIONAL MILITARY PARK.
(a) Acquisition of Land.--
(1) In general.--The Secretary of the Interior (referred to
in this Act as the ``Secretary'') may acquire the land or any
interests in land within the area identified as ``Modified
Core Battlefield'' for the Port Gibson Unit, the Champion
Hill Unit, and the Raymond Unit as generally depicted on the
map entitled ``Vicksburg National Military Park Proposed
Battlefield Additions'', numbered 306/100986, and dated
October 2010.
(2) Methods of acquisition.--Land and interests in land may
be acquired under paragraph (1) by donation, purchase from a
willing seller with donated or appropriated funds, or
exchange, except that land owned by the State of Mississippi
or any political subdivision of the State may be acquired
only by donation.
(b) Availability of Map.--The map described in subsection
(a)(1) shall be on file and available for public inspection
in the appropriate offices of the National Park Service.
(c) Boundary Adjustment.--On the acquisition of land by the
Secretary under this section--
(1) the acquired land shall be added to the Vicksburg
National Military Park;
(2) the boundary of the Vicksburg National Military Park
shall be adjusted to reflect the acquisition of the land; and
(3) the acquired land shall be administered as part of the
Vicksburg National Military Park in accordance with
applicable laws (including regulations).
(d) Authorization of Appropriations.--There are authorized
to be appropriated such sums as are necessary to carry out
this section.
______
SA 2384. Mr. CARDIN (for himself, Mr. Carper, Mr. Casey, Mr. Coons,
Ms. Mikulski, Mr. Rockefeller, Mr. Warner, and Mr. Webb) submitted an
amendment intended to be proposed by him to the bill S. 3240, to
reauthorize agricultural programs through 2017, and for other purposes;
which was ordered to lie on the table; as follows:
Beginning on page 246, strike line 7, and insert the
following:
``quantity strategies.
``(d) Funding.--The Secretary shall ensure that the total
amounts made available under this subtitle to geographical
areas designated under this section are not less than the
amounts those geographical areas would have received under
title XII of the Food Security Act of 1985 (as in effect on
the day before the date of enactment of this Act).''.
______
SA 2385. Mr. TESTER submitted an amendment intended to be proposed by
him to the bill S. 3240, to reauthorize agricultural programs through
2017, and for other purposes; which was ordered to lie on the table; as
follows:
On page 880, between lines 3 and 4, insert the following:
Subtitle E--Cabin Fee Act
SEC. 8401. SHORT TITLE.
This subtitle may be cited as the ``Cabin Fee Act of
2012''.
SEC. 8402. DEFINITIONS.
In this subtitle:
(1) Authorization; authorize.--The terms ``authorization''
and ``authorize'' mean the issuance of a special use permit
for the use and occupancy of National Forest System land by a
cabin owner under the Recreation Residence Program.
(2) Cabin.--The term ``cabin'' means a privately built and
owned recreation residence and related improvements on
National Forest System land that--
(A) is authorized for private use and occupancy; and
(B) may be sold or transferred between private parties.
(3) Cabin owner.--The term ``cabin owner'' means--
(A) a person authorized by the Secretary to use and to
occupy a cabin; and
(B) a trust, heir, or assign of a person described in
subparagraph (A).
(4) Cabin transfer fee.--The term ``cabin transfer fee''
means a fee that is paid to the United States on the transfer
of a cabin between private parties for money or other
consideration that results in the issuance of a new permit.
(5) Cabin user fee.--The term ``cabin user fee'' means an
annual fee paid to the United States by a cabin owner in
accordance with an authorization for the use and occupancy of
a cabin.
(6) Current appraisal cycle.--The term ``current appraisal
cycle'' means the completion of Forest Service review and
acceptance of--
(A) initial typical lot appraisals; or
(B) second appraisals, if ordered by cabin owners and
approved by the Forest Service.
(7) Current cabin user fee.--The term ``current cabin user
fee'' means the most recent cabin user fee, as adjusted under
section 8403(c).
(8) Lot.--The term ``lot'' means a parcel of National
Forest System land on which a person is authorized to build,
use, occupy, and maintain a cabin.
(9) National forest system land.--The term ``National
Forest System land'' means National Forest System land
derived from the public domain.
(10) Recreation residence program.--The term ``Recreation
Residence Program'' means the Recreation Residence Program
established under the last paragraph under the heading
``Forest service'' in the Act of March 4, 1915 (16 U.S.C.
497).
(11) Secretary.--The term ``Secretary'' means the Secretary
of Agriculture, acting through the Chief of the Forest
Service.
(12) Typical lot.--The term ``typical lot'' means a cabin
lot, or group of cabin lots, in a tract that is selected for
use in an appraisal as being representative of, and that has
similar value characteristics as, other lots or groups of
lots within the tract.
SEC. 8403. CABIN USER FEES.
(a) Payment of Cabin User Fees.--Cabin owners shall pay an
annual cabin user fee established by the Secretary in
accordance with this section.
(b) Initial Cabin User Fees.--
(1) Establishment.--The Secretary shall establish initial
cabin user fees in accordance with this subsection.
(2) Assignment to value tiers.--On completion of the
current appraisal cycle, as required by paragraph (4), the
Secretary shall assign each permitted lot on National Forest
System land to 1 of 9 tiers based on the following
considerations:
(A) Before assigning the lots to tiers, all appraised lot
values shall be adjusted, or normalized, for price changes
occurring after the appraisal, in accordance with the
National Association of Homebuilders/Wells Fargo Housing
Opportunity Index.
(B) Second appraisal values that are not rejected by the
Forest Service shall supersede initial lot appraisal values
for the normalization and ranking process under subparagraph
(A).
(C) The tiers shall be established, on a national basis,
according to relative lot value, with lots having the lowest
adjusted appraised value assigned to tier 1 and lots having
the highest adjusted appraised value assigned to tier 9.
(D) The number of lots (by percentage) assigned to each
tier is contained in the table set forth in paragraph (3).
(E) Data from incomplete appraisals may not be used to
establish the fee tiers under this subsection.
(F) Until assigned to a tier under this subsection, the
Secretary shall assess an interim fee for permitted cabin
lots (including lots with incomplete appraisals), which shall
be an amount equal to the lesser of--
(i) $4,500; or
(ii) the amount of the current cabin user fee, increased by
25 percent.
(3) Amount of initial cabin user fees.--The initial cabin
user fees, based on the assignments under paragraph (2), are
as follows:
------------------------------------------------------------------------
Approximate Percent of
Fee Tier Permits Nationally Fee Amount
------------------------------------------------------------------------
Tier 1 8 percent $500
------------------------------------------------------------------------
Tier 2 12 percent $1,000
------------------------------------------------------------------------
[[Page S4000]]
Tier 3 12 percent $1,500
------------------------------------------------------------------------
Tier 4 14 percent $2,000
------------------------------------------------------------------------
Tier 5 14 percent $2,500
------------------------------------------------------------------------
Tier 6 14 percent $3,000
------------------------------------------------------------------------
Tier 7 11 percent $3,500
------------------------------------------------------------------------
Tier 8 8 percent $4,000
------------------------------------------------------------------------
Tier 9 7 percent $4,500.
------------------------------------------------------------------------
(4) Deadline for completion of current appraisal cycle.--
Not later than 3 years after the date of enactment of this
Act, the Secretary shall complete the current appraisal
cycle.
(5) Effective date.--The initial cabin user fees required
by this subsection shall take effect beginning with the first
calendar year beginning after the completion of the current
appraisal cycle.
(c) Annual Adjustments of Cabin User Fee.--
(1) In general.--Subject to paragraph (2), the Secretary
shall use changes in the Implicit Price Deflator for the
Gross Domestic Product published by the Bureau of Economic
Analysis of the Department of Commerce, applied on a 5-year
rolling average, to assess an annual adjustment to cabin user
fees.
(2) Limitations.--Notwithstanding paragraph (1), cabin user
fees established under this section shall be increased by not
more than 25 percent in an annual adjustment under paragraph
(a).
(d) Effect of Destruction, Substantial Damage, or Loss of
Access.--
(1) In general.--The Secretary shall reduce the cabin user
fee to $100 per year for a cabin if--
(A) the cabin is destroyed or suffers substantial damage in
an amount that is greater than 50 percent of replacement cost
of the cabin; or
(B) access to the cabin is significantly impaired, whether
by catastrophic events, natural causes, or governmental
actions, which results in the cabin being rendered unsafe or
unable to be occupied.
(2) Term of reduced fee.--The reduced fee under paragraph
(1) shall be in effect until the later of--
(A) the last day of the year in which the destruction or
impairment occurs; or
(B) the date on which the cabin may be lawfully reoccupied
and normal access has been restored.
SEC. 8404. CABIN TRANSFER FEES.
(a) Payment of Cabin Transfer Fees.--In conjunction with
the transfer of ownership of any cabin and the issuance of a
new permit, the cabin owner transferring the cabin shall file
with the Secretary a sworn statement declaring the amount of
money or other value received, if any, for the transfer of
the cabin.
(b) Amount.--As a condition of the issuance by the
Secretary of a new authorization for the use and occupancy of
the cabin, the cabin owner transferring the cabin shall pay
to the Secretary a cabin transfer fee in an amount determined
as follows:
------------------------------------------------------------------------
Consideration Received by Transfer Transfer Fee Amount
------------------------------------------------------------------------
$0 to $250,000 $1,000
------------------------------------------------------------------------
$250,000.01 to $500,000.00 $1,000 plus 5 percent of
consideration in excess of
$250,000 up to $500,000
------------------------------------------------------------------------
$500,000.01 and above $1,000 plus 5 percent of
consideration in excess of
$250,000 up to $500,000 plus 10
percent of consideration in excess
of $500,000.
------------------------------------------------------------------------
(c) Index.--The Secretary shall use changes in the Implicit
Price Deflator for the Gross Domestic Product published by
the Bureau of Economic Analysis of the Department of
Commerce, applied on a 5-year rolling average, to determine
and apply an annual adjustment to the cabin transfer fee
threshold amounts set forth in the table contained in
subsection (b).
SEC. 8405. RIGHT OF APPEAL AND JUDICIAL REVIEW.
(a) Right of Appeal.--
(1) In general.--Notwithstanding any action of a cabin
owner to exercise rights in accordance with section 8406, the
Secretary shall by regulation grant to the cabin owner the
right to an administrative appeal of the determination of a
new cabin user fee, fee tier, cabin transfer fee, or whether
or not to reduce a cabin user fee under section 8403(d).
(2) Applicable law.--An appeal under paragraph (1) shall be
pursuant to the appeal process provided under subpart C of
part 251 of title 36, Code of Federal Regulations (or a
successor regulation).
(b) Judicial Review.--
(1) In general.--A cabin owner that contests a final
decision of the Secretary under this subtitle may bring a
civil action in United States district court.
(2) Venue.--The venue for an action brought before the
United States district court under this subsection shall be
in the Federal judicial district in which the cabin is
located or the permit holder resides.
(3) Effect on mediation.--Nothing in this subtitle
precludes a person from seeking mediation for an action under
this subtitle.
SEC. 8406. EFFECT.
(a) In General.--Nothing in this subtitle limits or
restricts any right, title, or interest of the United States
in or to any land or resource.
(b) Special Rule for Alaska.--In determining a cabin user
fee in the State of Alaska, the Secretary shall not establish
or impose a cabin user fee or a condition affecting a cabin
user fee that is inconsistent with 1303(d) of the Alaska
National Interest Lands Conservation Act (16 U.S.C. 3193(d)).
SEC. 8407. REGULATIONS.
Not later than December 31, 2012, the Secretary shall issue
regulations to carry out this subtitle.
______
SA 2386. Mr. SANDERS (for himself and Mr. Leahy) submitted an
amendment intended to be proposed by him to the bill S. 3240, to
reauthorize agricultural programs through 2017, and for other purposes;
which was ordered to lie on the table; as follows:
On page 361, between lines 8 and 9, insert the following:
SEC. 4208. DEPARTMENT OF DEFENSE FRESH PROGRAM.
Section 10603(b) of the Farm Security and Rural Investment
Act of 2002 (7 U.S.C. 612c 4(b)) (as amended by section 4201)
is amended--
(1) by striking ``The Secretary'' and inserting the
following:
``(1) In general.--The Secretary''; and
(2) by adding at the end the following:
``(2) Local and regional purchase.--In purchasing fresh
fruits and vegetables under paragraph (1), the Secretary
shall, to the maximum extent practicable, provide locally and
regionally grown produce to schools and service institutions.
``(3) Data tracking.--The Secretary of Agriculture, in
conjunction with the Secretary of Defense in carrying out the
fresh fruit and vegetable program of the Department of
Defense, shall--
``(A) track annual data on--
``(i) each State and county from which fresh fruits and
vegetables are purchased; and
``(ii) each State and county in which is located a school
or service institution to which the purchased commodities and
products are distributed; and
``(B) prepare an annual report that describes the volume,
types of fruits and vegetables, purchase price, minimal
processing, and percent of total purchases of commodities and
products that are procured by the Department of Defense and
provided to schools and service institutions locally and
regionally.
``(4) Department of defense program operation.--A school or
service institution described in paragraph (1) may carry out
this section by--
``(A) electing to participate in the fresh fruit and
vegetable program of the Department of Defense;
``(B) under such terms and conditions as the Secretary
shall establish, purchasing unprocessed or minimally
processed locally and regionally produced fruits and
vegetables with amounts that would have been used by the
school or service institution to participate in the fresh
fruit and vegetable program of the Department of Defense; or
``(C) carrying out a combination of the activities
described in subparagraphs (A) and (B).
``(5) Report to congress.--The Secretary shall submit to
the Committee on Agriculture of the House of Representatives
and the Committee on Agriculture, Nutrition, and Forestry of
the Senate a report containing--
``(A) the information and report described in paragraph
(3); and
``(B) annual information on the number of schools and
service institutions described in paragraph (4).''.
______
SA 2387. Mr. BOOZMAN submitted an amendment intended to be proposed
by him to the bill S. 3240, to reauthorize agricultural programs
through 2017, and for other purposes; which was ordered to lie on the
table; as follows:
In section 9007(a)(1)--
(1) redesignate subparagraphs (A) and (B) as subparagraphs
(B) and (C), respectively; and
(2) before subparagraph (B) (as so redesignated), insert
the following:
[[Page S4001]]
(A) in subsection (a), by inserting ``(other than to
construct, fund, install, or operate an ethanol blender
pump)'' after ``businesses'';
______
SA 2388. Mr. WYDEN submitted an amendment intended to be proposed by
him to the bill S. 3240, to reauthorize agricultural programs through
2017, and for other purposes; which was ordered to lie on the table; as
follows:
On page 360, after line 24, add the following:
SEC. 4207. PURCHASES OF LOCALLY PRODUCED FOODS.
Section 9(j) of the Richard B. Russell National School
Lunch Act (42 U.S.C. 1758(j)) is amended--
(1) by redesignating paragraphs (1) through (3) as
subparagraphs (A) through (C), respectively, and indenting
the subparagraphs appropriately;
(2) by striking ``The Secretary'' and inserting the
following:
``(1) In general.--The Secretary'';
(3) in paragraph (1) (as so redesignated)--
(A) in subparagraph (B)--
(i) by striking ``paragraph (1) of the policy described in
that paragraph and paragraph (3)'' and inserting
``subparagraph (A) of the policy described in that
subparagraph and subparagraph (C)''; and
(ii) 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) not later than 1 year after the date of enactment of
this subparagraph, in accordance with paragraphs (2) and (3),
conduct not fewer than 5 demonstration projects through
school food authorities receiving funds under this Act and
the Child Nutrition Act of 1966 (42 U.S.C. 1771 et seq.) to
facilitate the purchase of unprocessed and minimally
processed locally grown and locally raised agricultural
products.''; and
(4) by adding at the end the following:
``(2) Selection.--In conducting demonstration projects
under paragraph (1)(D), the Secretary shall ensure that at
least 1 project is located in a State in each of--
``(A) the Pacific Northwest Region;
``(B) the Northeast Region;
``(C) the Western Region;
``(D) the Midwest Region; and
``(E) the Southern Region.
``(3) Priority.--In selecting States for participation in
the demonstration projects under paragraph (2), the Secretary
shall prioritize applications based on--
``(A) the quantity and variety of growers of local fruits
and vegetables in the State;
``(B) the demonstrated commitment of the State to farm-to-
school efforts, as evidenced by prior efforts to increase and
promote farm-to- school programs in the State; and
``(C) whether the State contains a sufficient quantity of
school districts of varying population sizes and geographical
locations.''.
______
SA 2389. Mr. REID (for Ms. Stabenow (for herself and Mr. Roberts))
proposed an amendment to the bill S. 3240, to reauthorize agricultural
programs through 2017, and for other purposes; as follows:
Beginning on page 14, strike line 10 and all that follows
through page 1000, line 2, and insert the following:
(7) Eligible acres.--
(A) In general.--Except as provided in subparagraphs (B)
through (D), the term ``eligible acres'' means all acres
planted or prevented from being planted to all covered
commodities on a farm in any crop year.
(B) Maximum.--Except as provided in (C), the total quantity
of eligible acres on a farm determined under subparagraph (A)
shall not exceed the average total acres planted or prevented
from being planted to covered commodities and upland cotton
on the farm for the 2009 through 2012 crop years, as
determined by the Secretary.
(C) Adjustment.--The Secretary shall provide for an
adjustment, as appropriate, in the eligible acres for covered
commodities for a farm if any of the following circumstances
occurs:
(i) If a conservation reserve contract for a farm in a
county entered into under section 1231 of the Food Security
Act of 1985 (16 U.S.C. 3831) expires or is voluntarily
terminated or cropland is released from coverage under a
conservation reserve contract, the Secretary shall provide
for an adjustment, as appropriate, in the eligible acres for
the farm to a total quantity that is the higher of--
(I) the total base acreage for the farm, less any upland
cotton base acreage, that was suspended during the
conservation reserve contract; or
(II) the product obtained by multiplying--
(aa) the average proportion that--
(AA) the total number of acres planted to covered
commodities and upland cotton in the county for crop years
2009 through 2012; bears to
(BB) the total number of all acres of covered commodities,
grassland, and upland cotton acres in the county for the same
crop years; by
(bb) the total acres for which coverage has expired,
voluntarily terminated, or been released under the
conservation reserve contract.
(ii) The producer has eligible oilseed acreage as the
result of the Secretary designating additional oilseeds,
which shall be determined in the same manner as eligible
oilseed acreage under section 1101(a)(1)(D) of the Food,
Conservation, and Energy Act of 2008 (7 U.S.C.
8711(a)(1)(D)).
(iii) The producer has any acreage not cropped during the
2009 through 2012 crop years, but placed into an established
rotation practice for the purposes of enriching land or
conserving moisture for subsequent crop years, including
summer fallow, as determined by the Secretary.
(D) Exclusion.--The term ``eligible acres'' does not
include any crop subsequently planted during the same crop
year on the same land for which the first crop is eligible
for payments under this subtitle, unless the crop was planted
in an area approved for double cropping, as determined by the
Secretary.
(8) Extra long staple cotton.--The term ``extra long staple
cotton'' means cotton that--
(A) is produced from pure strain varieties of the
Barbadense species or any hybrid of the species, or other
similar types of extra long staple cotton, designated by the
Secretary, having characteristics needed for various end uses
for which United States upland cotton is not suitable and
grown in irrigated cotton-growing regions of the United
States designated by the Secretary or other areas designated
by the Secretary as suitable for the production of the
varieties or types; and
(B) is ginned on a roller-type gin or, if authorized by the
Secretary, ginned on another type gin for experimental
purposes.
(9) Individual coverage.--For purposes of agriculture risk
coverage under section 1105, the term ``individual coverage''
means coverage determined using the total quantity of all
acreage in a county of the covered commodity that is planted
or prevented from being planted for harvest by a producer
with the yield determined by the average individual yield of
the producer described in subsection (c) of that section.
(10) Medium grain rice.--The term ``medium grain rice''
includes short grain rice.
(11) Midseason price.--The term ``midseason price'' means
the applicable national average market price received by
producers for the first 5 months of the applicable marketing
year, as determined by the Secretary.
(12) Other oilseed.--The term ``other oilseed'' means a
crop of sunflower seed, rapeseed, canola, safflower,
flaxseed, mustard seed, crambe, sesame seed, or any oilseed
designated by the Secretary.
(13) Producer.--
(A) In general.--The term ``producer'' means an owner,
operator, landlord, tenant, or sharecropper that 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.--In determining whether a grower of hybrid
seed is a producer, the Secretary shall--
(i) not take into consideration the existence of a hybrid
seed contract; and
(ii) ensure that program requirements do not adversely
affect the ability of the grower to receive a payment under
this title.
(14) Pulse crop.--The term ``pulse crop'' means dry peas,
lentils, small chickpeas, and large chickpeas.
(15) State.--The term ``State'' means--
(A) a State;
(B) the District of Columbia;
(C) the Commonwealth of Puerto Rico; and
(D) any other territory or possession of the United States.
(16) Transitional yield.--The term ``transitional yield''
has the meaning given the term in section 502(b) of the
Federal Crop Insurance Act (7 U.S.C. 1502(b)).
(17) United states.--The term ``United States'', when used
in a geographical sense, means all of the States.
(18) United states premium factor.--The term ``United
States Premium Factor'' means the percentage by which the
difference in the United States loan schedule premiums for
Strict Middling (SM) 1\1/8\-inch upland cotton and for
Middling (M) 1\3/32\-inch upland cotton exceeds the
difference in the applicable premiums for comparable
international qualities.
SEC. 1105. AGRICULTURE RISK COVERAGE.
(a) Payments Required.--If the Secretary determines that
payments are required under subsection (c), the Secretary
shall make payments for each covered commodity available to
producers in accordance with this section.
(b) Coverage Election.--
(1) In general.--For the period of crop years 2013 through
2017, the producers shall make a 1-time, irrevocable election
to receive--
(A) individual coverage under this section, as determined
by the Secretary; or
(B) in the case of a county with sufficient data (as
determined by the Secretary), county coverage under this
section.
(2) Effect of election.--The election made under paragraph
(1) shall be binding on the producers making the election,
regardless of covered commodities planted, and applicable to
all acres under the operational control of the producers, in
a manner that--
(A) acres brought under the operational control of the
producers after the election are included; and
(B) acres no longer under the operational control of the
producers after the election are no longer subject to the
election of the producers but become subject to the election
of the subsequent producers.
[[Page S4002]]
(3) Duties of the secretary.--The Secretary shall ensure
that producers are precluded from taking any action,
including reconstitution, transfer, or other similar action,
that would have the effect of altering or reversing the
election made under paragraph (1).
(c) Agriculture Risk Coverage.--
(1) Payments.--The Secretary shall make agriculture risk
coverage payments available under this subsection for each of
the 2013 through 2017 crop years if the Secretary determines
that--
(A) the actual crop revenue for the crop year for the
covered commodity; is less than
(B) the agriculture risk coverage guarantee for the crop
year for the covered commodity.
(2) Time for payments.--If the Secretary determines under
this subsection that agriculture risk coverage payments are
required to be made for the covered commodity, the
agriculture risk coverage payments shall be made as soon as
practicable thereafter.
(3) Actual crop revenue.--The amount of the actual crop
revenue for a crop year of a covered commodity shall be equal
to the product obtained by multiplying--
(A)(i) in the case of individual coverage, the actual
average individual yield for the covered commodity, as
determined by the Secretary; or
(ii) in the case of county coverage, the actual average
yield for the county for the covered commodity, as determined
by the Secretary; and
(B) the higher of--
(i) the midseason price; or
(ii) if applicable, the national marketing assistance loan
rate for the covered commodity under subtitle B.
(4) Agriculture risk coverage guarantee.--
(A) In general.--The agriculture risk coverage guarantee
for a crop year for a covered commodity shall equal 89
percent of the benchmark revenue.
(B) Benchmark revenue.--
(i) In general.--The benchmark revenue shall be the product
obtained by multiplying--
(I)(aa) in the case of individual coverage, subject to
clause (ii), the average individual yield, as determined by
the Secretary, for the most recent 5 crop years, excluding
each of the crop years with the highest and lowest yields; or
(bb) in the case of county coverage, the average county
yield, as determined by the Secretary, for the most recent 5
crop years, excluding each of the crop years with the highest
and lowest yields; and
(II) subject to clause (iii), the average national
marketing year average price for the most recent 5 crop
years, excluding each of the crop years with the highest and
lowest prices.
(ii) Use of transitional yields.--If the yield determined
under clause (i)(I)(aa)--
(I) for the 2012 crop year or any prior crop year, is less
than 60 percent of the applicable transitional yield, the
Secretary shall use 60 percent of the applicable transitional
yield for that crop year; and
(II) for the 2013 crop year and any subsequent crop year,
is less than 70 percent of the applicable transitional yield,
the Secretary shall use 70 percent of the applicable
transitional yield for that crop year.
(iii) Special rule for rice and peanuts.--If the national
marketing year average price under clause (i)(II) for any of
the applicable crop years is lower than the price for the
covered commodity listed below, the Secretary shall use the
following price for that crop year:
(I) For long grain rice, $13.00 per hundredweight.
(II) For medium grain rice, $13.00 per hundredweight.
(III) For peanuts, $530.00 per ton.
(5) Payment rate.--The payment rate for each covered
commodity shall be equal to the lesser of--
(A) the amount that--
(i) the agriculture risk coverage guarantee for the covered
commodity; exceeds
(ii) the actual crop revenue for the crop year of the
covered commodity; or
(B) 10 percent of the benchmark revenue for the crop year
of the covered commodity.
(6) Payment amount.--If agriculture risk coverage payments
under this subsection are required to be paid for any of the
2013 through 2017 crop years of a covered commodity, the
amount of the agriculture risk coverage payment for the crop
year shall be equal to the product obtained by multiplying--
(A) the payment rate under paragraph (5); and
(B)(i) in the case of individual coverage the sum of--
(I) 65 percent of the planted eligible acres of the covered
commodity; and
(II) 45 percent of the eligible acres that were prevented
from being planted to the covered commodity; or
(ii) in the case of county coverage--
(I) 80 percent of the planted eligible acres of the covered
commodity; and
(II) 45 percent of the eligible acres that were prevented
from being planted to the covered commodity.
(7) Duties of the secretary.--In carrying out the program
under this subsection, the Secretary shall--
(A) to the maximum extent practicable, use all available
information and analysis to check for anomalies in the
determination of payments under the program;
(B) to the maximum extent practicable, calculate a separate
actual crop revenue and agriculture risk coverage guarantee
for irrigated and nonirrigated covered commodities;
(C) differentiate by type or class the national average
price of--
(i) sunflower seeds;
(ii) barley, using malting barley values; and
(iii) wheat; and
(D) assign a yield for each acre planted or prevented from
being planted for the crop year for the covered commodity on
the basis of the yield history of representative farms in the
State, region, or crop reporting district, as determined by
the Secretary, if the Secretary cannot establish the yield as
determined under paragraph (3)(A)(ii) or (4)(B)(i) or if the
yield determined under paragraph (3)(A)(ii) or (4) is an
unrepresentative average yield for the covered commodity as
determined by the Secretary.
SEC. 1106. PRODUCER AGREEMENT REQUIRED AS CONDITION OF
PROVISION OF PAYMENTS.
(a) Compliance With Certain Requirements.--
(1) Requirements.--Before the producers on a farm may
receive agriculture risk coverage payments, the producers
shall agree, during the crop year for which the payments are
made and in exchange for the payments--
(A) to comply with applicable conservation requirements
under subtitle B of title XII of the Food Security Act of
1985 (16 U.S.C. 3811 et seq.);
(B) to comply with applicable wetland protection
requirements under subtitle C of title XII of that Act (16
U.S.C. 3821 et seq.);
(C) to use the land on the farm for an agricultural or
conserving use in a quantity equal to the attributable
eligible acres of the farm, and not for a nonagricultural
commercial, industrial, or residential use, as determined by
the Secretary; and
(D) to effectively control noxious weeds and otherwise
maintain the land in accordance with sound agricultural
practices, as determined by the Secretary, if the
agricultural or conserving use involves the noncultivation of
any portion of the land referred to in subparagraph (C).
(2) Compliance.--The Secretary may issue such rules as the
Secretary considers necessary to ensure producer compliance
with the requirements of paragraph (1).
(3) Modification.--At the request of the transferee or
owner, the Secretary may modify the requirements of this
subsection if the modifications are consistent with the
objectives of this subsection, as determined by the
Secretary.
(b) Transfer or Change of Interest in Farm.--
(1) Termination.--
(A) In general.--Except as provided in paragraph (2), a
transfer of (or change in) the interest of the producers on a
farm for which agriculture risk coverage payments are made
shall result in the termination of the agriculture risk
coverage payments, unless the transferee or owner of the
acreage agrees to assume all obligations under subsection
(a).
(B) Effective date.--The termination shall take effect on
the date determined by the Secretary.
(2) Exception.--If a producer entitled to an agriculture
risk coverage payment dies, becomes incompetent, or is
otherwise unable to receive the payment, the Secretary shall
make the payment, in accordance with rules issued by the
Secretary.
(c) Reports.--
(1) Acreage reports.--As a condition on the receipt of any
benefits under this subtitle or subtitle B, the Secretary
shall require producers on a farm to submit to the Secretary
annual acreage reports with respect to all cropland on the
farm.
(2) Production reports.--As a condition on the receipt of
any benefits under section 1105, the Secretary shall require
producers on a farm to submit to the Secretary annual
production reports with respect to all covered commodities
produced on the farm.
(3) Penalties.--No penalty with respect to benefits under
this subtitle or subtitle B shall be assessed against the
producers on a farm for an inaccurate acreage or production
report unless the producers on the farm knowingly and
willfully falsified the acreage or production report.
(4) Data reporting.--To the maximum extent practicable, the
Secretary shall use data reported by the producer pursuant to
requirements under the Federal Crop Insurance Act (7 U.S.C.
1501 et seq.) to meet the obligations described in paragraphs
(1) and (2), without additional submissions to the
Department.
(d) Tenants and Sharecroppers.--In carrying out this
subtitle, the Secretary shall provide adequate safeguards to
protect the interests of tenants and sharecroppers.
SEC. 1107. PERIOD OF EFFECTIVENESS.
Sections 1104 through 1106 shall be effective beginning
with the 2013 crop year of each covered commodity through the
2017 crop year.
Subtitle B--Marketing Assistance Loans and Loan Deficiency Payments
SEC. 1201. AVAILABILITY OF NONRECOURSE MARKETING ASSISTANCE
LOANS FOR LOAN COMMODITIES.
(a) Definition of Loan Commodity.--In this subtitle, the
term ``loan commodity'' means wheat, corn, grain sorghum,
barley, oats, upland cotton, extra long staple cotton, long
grain rice, medium grain rice, peanuts, soybeans, other
oilseeds, graded wool, nongraded wool, mohair, honey, dry
peas, lentils, small chickpeas, and large chickpeas.
[[Page S4003]]
(b) Nonrecourse Loans Available.--
(1) In general.--For each of the 2013 through 2017 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.
(2) Terms and conditions.--The marketing assistance loans
shall be made under terms and conditions that are prescribed
by the Secretary and at the loan rate established under
section 1202 for the loan commodity.
(c) Eligible Production.--The producers on a farm shall be
eligible for a marketing assistance loan under subsection (b)
for any quantity of a loan commodity produced on the farm.
(d) Compliance With Conservation and Wetlands
Requirements.--
(1) Requirements.--Before the producers on a farm may
receive a marketing assistance loan or any other payment or
benefit under this subtitle, the producers shall agree, for
the crop year for which the payments are made and in exchange
for the payments--
(A) to comply with applicable conservation requirements
under subtitle B of title XII of the Food Security Act of
1985 (16 U.S.C. 3811 et seq.);
(B) to comply with applicable wetland protection
requirements under subtitle C of title XII of that Act (16
U.S.C. 3821 et seq.);
(C) to use the land on the farm for an agricultural or
conserving use in a quantity equal to the attributable
eligible acres of the farm, and not for a nonagricultural
commercial, industrial, or residential use, as determined by
the Secretary; and
(D) to effectively control noxious weeds and otherwise
maintain the land in accordance with sound agricultural
practices, as determined by the Secretary, if the
agricultural or conserving use involves the noncultivation of
any portion of the land referred to in subparagraph (C).
(2) Compliance.--The Secretary may issue such rules as the
Secretary considers necessary to ensure producer compliance
with paragraph (1).
(3) Modification.--At the request of a transferee or owner,
the Secretary may modify the requirements of this subsection
if the modifications are consistent with the purposes of this
subsection, as determined by the Secretary.
(e) Special Rules for Peanuts.--
(1) In general.--This subsection shall apply only to
producers of peanuts.
(2) Options for obtaining loan.--A marketing assistance
loan under this section, and loan deficiency payments under
section 1205, may be obtained at the option of the producers
on a farm through--
(A) a designated marketing association or marketing
cooperative of producers that is approved by the Secretary;
or
(B) the Farm Service Agency.
(3) Storage of loan peanuts.--As a condition on the
approval by the Secretary of an individual or entity to
provide storage for peanuts for which a marketing assistance
loan is made under this section, the individual or entity
shall agree--
(A) to provide the storage on a nondiscriminatory basis;
and
(B) to comply with such additional requirements as the
Secretary considers appropriate to accomplish the purposes of
this section and promote fairness in the administration of
the benefits of this section.
(4) Storage, handling, and associated costs.--
(A) In general.--To ensure proper storage of peanuts for
which a loan is made under this section, the Secretary shall
pay handling and other associated costs (other than storage
costs) incurred at the time at which the peanuts are placed
under loan, as determined by the Secretary.
(B) Redemption and forfeiture.--The Secretary shall--
(i) require the repayment of handling and other associated
costs paid under subparagraph (A) for all peanuts pledged as
collateral for a loan that is redeemed under this section;
and
(ii) pay storage, handling, and other associated costs for
all peanuts pledged as collateral that are forfeited under
this section.
(5) Marketing.--A marketing association or cooperative may
market peanuts for which a loan is made under this section in
any manner that conforms to consumer needs, including the
separation of peanuts by type and quality.
(6) Reimbursable agreements and payment of administrative
expenses.--The Secretary may implement any reimbursable
agreements or provide for the payment of administrative
expenses under this subsection only in a manner that is
consistent with those activities in regard to other loan
commodities.
SEC. 1202. LOAN RATES FOR NONRECOURSE MARKETING ASSISTANCE
LOANS.
(a) In General.--For purposes of each of the 2013 through
2017 crop years, the loan rate for a marketing assistance
loan under section 1201 for a loan commodity shall be equal
to the following:
(1) In the case of wheat, $2.94 per bushel.
(2) In the case of corn, $1.95 per bushel.
(3) In the case of grain sorghum, $1.95 per bushel.
(4) In the case of barley, $1.95 per bushel.
(5) In the case of oats, $1.39 per bushel.
(6) In the case of base quality of upland cotton, for the
2013 and each subsequent crop year, the simple average of the
adjusted prevailing world price for the 2 immediately
preceding marketing years, as determined by the Secretary and
announced October 1 preceding the next domestic plantings,
but in no case less than $0.47 per pound or more than $0.52
per pound.
(7) In the case of extra long staple cotton, $0.7977 per
pound.
(8) In the case of long grain rice, $6.50 per
hundredweight.
(9) In the case of medium grain rice, $6.50 per
hundredweight.
(10) In the case of soybeans, $5.00 per bushel.
(11) In the case of other oilseeds, $10.09 per
hundredweight for each of the following kinds of oilseeds:
(A) Sunflower seed.
(B) Rapeseed.
(C) Canola.
(D) Safflower.
(E) Flaxseed.
(F) Mustard seed.
(G) Crambe.
(H) Sesame seed.
(I) Other oilseeds designated by the Secretary.
(12) In the case of dry peas, $5.40 per hundredweight.
(13) In the case of lentils, $11.28 per hundredweight.
(14) In the case of small chickpeas, $7.43 per
hundredweight.
(15) In the case of large chickpeas, $11.28 per
hundredweight.
(16) In the case of graded wool, $1.15 per pound.
(17) In the case of nongraded wool, $0.40 per pound.
(18) In the case of mohair, $4.20 per pound.
(19) In the case of honey, $0.69 per pound.
(20) In the case of peanuts, $355 per ton.
(b) Single County Loan Rate for Other Oilseeds.--The
Secretary shall establish a single loan rate in each county
for each kind of other oilseeds described in subsection
(a)(11).
SEC. 1203. TERM OF LOANS.
(a) Term of Loan.--In the case of each loan commodity, a
marketing assistance loan under section 1201 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.
(b) Extensions Prohibited.--The Secretary may not extend
the term of a marketing assistance loan for any loan
commodity.
SEC. 1204. REPAYMENT OF LOANS.
(a) General Rule.--The Secretary shall permit the producers
on a farm to repay a marketing assistance loan under section
1201 for a loan commodity (other than upland cotton, long
grain rice, medium grain rice, extra long staple cotton,
peanuts and confectionery and each other kind of sunflower
seed (other than oil sunflower seed)) at a rate that is the
lesser of--
(1) the loan rate established for the commodity under
section 1202, plus interest (determined in accordance with
section 163 of the Federal Agriculture Improvement and Reform
Act of 1996 (7 U.S.C. 7283));
(2) a rate (as determined by the Secretary) that--
(A) is calculated based on average market prices for the
loan commodity during the preceding 30-day period; and
(B) will minimize discrepancies in marketing loan benefits
across State boundaries and across county boundaries; or
(3) a rate that the Secretary may develop using alternative
methods for calculating a repayment rate for a loan commodity
that the Secretary determines will--
(A) minimize potential loan forfeitures;
(B) minimize the accumulation of stocks of the commodity by
the Federal Government;
(C) minimize the cost incurred by the Federal Government in
storing the commodity;
(D) allow the commodity produced in the United States to be
marketed freely and competitively, both domestically and
internationally; and
(E) minimize discrepancies in marketing loan benefits
across State boundaries and across county boundaries.
(b) Repayment Rates for Upland Cotton, Long Grain Rice, and
Medium Grain Rice.--The Secretary shall permit producers to
repay a marketing assistance loan under section 1201 for
upland cotton, long grain rice, and medium grain rice at a
rate that is the lesser of--
(1) the loan rate established for the commodity under
section 1202, plus interest (determined in accordance with
section 163 of the Federal Agriculture Improvement and Reform
Act of 1996 (7 U.S.C. 7283)); or
(2) the prevailing world market price for the commodity, as
determined and adjusted by the Secretary in accordance with
this section.
(c) Repayment Rates for Extra Long Staple Cotton.--
Repayment of a marketing assistance loan for extra long
staple cotton shall be at the loan rate established for the
commodity under section 1202, plus interest (determined in
accordance with section 163 of the Federal Agriculture
Improvement and Reform Act of 1996 (7 U.S.C. 7283)).
(d) Prevailing World Market Price.--For purposes of this
section and section 1207, the Secretary shall prescribe by
regulation--
(1) a formula to determine the prevailing world market
price for each of upland cotton, long grain rice, and medium
grain rice; and
(2) a mechanism by which the Secretary shall announce
periodically those prevailing world market prices.
(e) Adjustment of Prevailing World Market Price for Upland
Cotton, Long Grain Rice, and Medium Grain Rice.--
[[Page S4004]]
(1) Rice.--The prevailing world market price for long grain
rice and medium grain rice determined under subsection (d)
shall be adjusted to United States quality and location.
(2) Cotton.--The prevailing world market price for upland
cotton determined under subsection (d)--
(A) shall be adjusted to United States quality and
location, with the adjustment to include--
(i) a reduction equal to any United States Premium Factor
for upland cotton of a quality higher than Middling (M) 1\3/
32\-inch; and
(ii) the average costs to market the commodity, including
average transportation costs, as determined by the Secretary;
and
(B) may be further adjusted, during the period beginning on
the date of enactment of this Act and ending on July 31,
2018, if the Secretary determines the adjustment is
necessary--
(i) to minimize potential loan forfeitures;
(ii) to minimize the accumulation of stocks of upland
cotton by the Federal Government;
(iii) to ensure that upland cotton produced in the United
States can be marketed freely and competitively, both
domestically and internationally; and
(iv) to ensure an appropriate transition between current-
crop and forward-crop price quotations, except that the
Secretary may use forward-crop price quotations prior to July
31 of a marketing year only if--
(I) there are insufficient current-crop price quotations;
and
(II) the forward-crop price quotation is the lowest such
quotation available.
(3) Guidelines for additional adjustments.--In making
adjustments under this subsection, the Secretary shall
establish a mechanism for determining and announcing the
adjustments in order to avoid undue disruption in the United
States market.
(f) Repayment Rates for Confectionery and Other Kinds of
Sunflower Seeds.--The Secretary shall permit the producers on
a farm to repay a marketing assistance loan under section
1201 for confectionery and each other kind of sunflower seed
(other than oil sunflower seed) at a rate that is the lesser
of--
(1) the loan rate established for the commodity under
section 1202, plus interest (determined in accordance with
section 163 of the Federal Agriculture Improvement and Reform
Act of 1996 (7 U.S.C. 7283)); or
(2) the repayment rate established for oil sunflower seed.
(g) Payment of Cotton Storage Costs.--Effective for each of
the 2013 through 2017 crop years, the Secretary shall make
cotton storage payments available in the same manner, and at
the same rates as the Secretary provided storage payments for
the 2006 crop of cotton, except that the rates shall be
reduced by 20 percent.
(h) Repayment Rate for Peanuts.--The Secretary shall permit
producers on a farm to repay a marketing assistance loan for
peanuts under subsection (a) at a rate that is the lesser
of--
(1) the loan rate established for peanuts under subsection
(b), plus interest (determined in accordance with section 163
of the Federal Agriculture Improvement and Reform Act of 1996
(7 U.S.C. 7283)); or
(2) a rate that the Secretary determines will--
(A) minimize potential loan forfeitures;
(B) minimize the accumulation of stocks of peanuts by the
Federal Government;
(C) minimize the cost incurred by the Federal Government in
storing peanuts; and
(D) allow peanuts produced in the United States to be
marketed freely and competitively, both domestically and
internationally.
(i) Authority to Temporarily Adjust Repayment Rates.--
(1) Adjustment authority.--In the event of a severe
disruption to marketing, transportation, or related
infrastructure, the Secretary may modify the repayment rate
otherwise applicable under this section for marketing
assistance loans under section 1201 for a loan commodity.
(2) Duration.--Any adjustment made under paragraph (1) in
the repayment rate for marketing assistance loans for a loan
commodity shall be in effect on a short-term and temporary
basis, as determined by the Secretary.
SEC. 1205. LOAN DEFICIENCY PAYMENTS.
(a) Availability of Loan Deficiency Payments.--
(1) In general.--Except as provided in subsection (d), the
Secretary may make loan deficiency payments available to
producers on a farm that, although eligible to obtain a
marketing assistance loan under section 1201 with respect to
a loan commodity, agree to forgo obtaining the loan for the
commodity in return for loan deficiency payments under this
section.
(2) Unshorn pelts, hay, and silage.--
(A) Marketing assistance loans.--Subject to subparagraph
(B), nongraded wool in the form of unshorn pelts and hay and
silage derived from a loan commodity are not eligible for a
marketing assistance loan under section 1201.
(B) Loan deficiency payment.--Effective for the 2013
through 2017 crop years, the Secretary may make loan
deficiency payments available under this section to producers
on a farm that produce unshorn pelts or hay and silage
derived from a loan commodity.
(b) Computation.--A loan deficiency payment for a loan
commodity or commodity referred to in subsection (a)(2) shall
be equal to the product obtained by multiplying--
(1) the payment rate determined under subsection (c) for
the commodity; by
(2) the quantity of the commodity produced by the eligible
producers, excluding any quantity for which the producers
obtain a marketing assistance loan under section 1201.
(c) Payment Rate.--
(1) In general.--In the case of a loan commodity, the
payment rate shall be the amount by which--
(A) the loan rate established under section 1202 for the
loan commodity; exceeds
(B) the rate at which a marketing assistance loan for the
loan commodity may be repaid under section 1204.
(2) Unshorn pelts.--In the case of unshorn pelts, the
payment rate shall be the amount by which--
(A) the loan rate established under section 1202 for
ungraded wool; exceeds
(B) the rate at which a marketing assistance loan for
ungraded wool may be repaid under section 1204.
(3) Hay and silage.--In the case of hay or silage derived
from a loan commodity, the payment rate shall be the amount
by which--
(A) the loan rate established under section 1202 for the
loan commodity from which the hay or silage is derived;
exceeds
(B) the rate at which a marketing assistance loan for the
loan commodity may be repaid under section 1204.
(d) Exception for Extra Long Staple Cotton.--This section
shall not apply with respect to extra long staple cotton.
(e) Effective Date for Payment Rate Determination.--The
Secretary shall determine the amount of the loan deficiency
payment to be made under this section to the producers on a
farm with respect to a quantity of a loan commodity or
commodity referred to in subsection (a)(2) using the payment
rate in effect under subsection (c) as of the date the
producers request the payment.
SEC. 1206. PAYMENTS IN LIEU OF LOAN DEFICIENCY PAYMENTS FOR
GRAZED ACREAGE.
(a) Eligible Producers.--
(1) In general.--Effective for the 2013 through 2017 crop
years, in the case of a producer that would be eligible for a
loan deficiency payment under section 1205 for wheat, barley,
or oats, but that elects to use acreage planted to the wheat,
barley, or oats for the grazing of livestock, the Secretary
shall make a payment to the producer under this section if
the producer enters into an agreement with the Secretary to
forgo any other harvesting of the wheat, barley, or oats on
that acreage.
(2) Grazing of triticale acreage.--Effective for the 2013
through 2017 crop years, with respect to a producer on a farm
that uses acreage planted to triticale for the grazing of
livestock, the Secretary shall make a payment to the producer
under this section if the producer enters into an agreement
with the Secretary to forgo any other harvesting of triticale
on that acreage.
(b) Payment Amount.--
(1) In general.--The amount of a payment made under this
section to a producer on a farm described in subsection
(a)(1) shall be equal to the amount determined by
multiplying--
(A) the loan deficiency payment rate determined under
section 1205(c) in effect, as of the date of the agreement,
for the county in which the farm is located; by
(B) the payment quantity determined by multiplying--
(i) the quantity of the grazed acreage on the farm with
respect to which the producer elects to forgo harvesting of
wheat, barley, or oats; and
(ii)(I) the yield in effect for the calculation of
agriculture risk coverage payments under subtitle A with
respect to that loan commodity on the farm; or
(II) in the case of a farm without a payment yield for that
loan commodity, an appropriate yield established by the
Secretary.
(2) Grazing of triticale acreage.--The amount of a payment
made under this section to a producer on a farm described in
subsection (a)(2) shall be equal to the amount determined by
multiplying--
(A) the loan deficiency payment rate determined under
section 1205(c) in effect for wheat, as of the date of the
agreement, for the county in which the farm is located; by
(B) the payment quantity determined by multiplying--
(i) the quantity of the grazed acreage on the farm with
respect to which the producer elects to forgo harvesting of
triticale; and
(ii)(I) the yield in effect for the calculation of
agriculture risk coverage payments under subtitle A with
respect to wheat on the farm; or
(II) in the case of a farm without a payment yield for
wheat, an appropriate yield established by the Secretary in a
manner consistent with section 1102 of the Food,
Conservation, and Energy Act of 2008 (7 U.S.C. 8712).
(c) Time, Manner, and Availability of Payment.--
(1) Time and manner.--A payment under this section shall be
made at the same time and in the same manner as loan
deficiency payments are made under section 1205.
(2) Availability.--
(A) In general.--The Secretary shall establish an
availability period for the payments authorized by this
section.
[[Page S4005]]
(B) Certain commodities.--In the case of wheat, barley, and
oats, the availability period shall be consistent with the
availability period for the commodity established by the
Secretary for marketing assistance loans authorized by this
subtitle.
(d) Prohibition on Crop Insurance Indemnity or Noninsured
Crop Assistance.--A 2013 through 2017 crop of wheat, barley,
oats, or triticale planted on acreage that a producer elects,
in the agreement required by subsection (a), to use for the
grazing of livestock in lieu of any other harvesting of the
crop shall not be eligible for an indemnity under a policy or
plan of insurance authorized under the Federal Crop Insurance
Act (7 U.S.C. 1501 et seq.) or noninsured crop assistance
under section 196 of the Federal Agriculture Improvement and
Reform Act of 1996 (7 U.S.C. 7333).
SEC. 1207. SPECIAL MARKETING LOAN PROVISIONS FOR UPLAND
COTTON.
(a) Special Import Quota.--
(1) Definition of special import quota.--In this
subsection, the term ``special import quota'' means a
quantity of imports that is not subject to the over-quota
tariff rate of a tariff-rate quota.
(2) Establishment.--
(A) In general.--The President shall carry out an import
quota program during the period beginning on August 1, 2013,
and ending on July 31, 2018, as provided in this subsection.
(B) Program requirements.--Whenever the Secretary
determines and announces that for any consecutive 4-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 to a definable
and significant international market, as determined by the
Secretary, exceeds the prevailing world market price, there
shall immediately be in effect a special import quota.
(3) Quantity.--The quota shall be equal to the consumption
during a 1-week period of cotton by domestic mills at the
seasonally adjusted average rate of the most recent 3 months
for which official data of the Department of Agriculture or
other data are available.
(4) Application.--The quota shall apply to upland cotton
purchased not later than 90 days after the date of the
Secretary's announcement under paragraph (2) and entered into
the United States not later than 180 days after that date.
(5) Overlap.--A special quota period may be established
that overlaps any existing quota period if required by
paragraph (2), except that a special quota period may not be
established under this subsection if a quota period has been
established under subsection (b).
(6) Preferential tariff treatment.--The quantity under a
special import quota shall be considered to be an in-quota
quantity for purposes of--
(A) section 213(d) of the Caribbean Basin Economic Recovery
Act (19 U.S.C. 2703(d));
(B) section 204 of the Andean Trade Preference Act (19
U.S.C. 3203);
(C) section 503(d) of the Trade Act of 1974 (19 U.S.C.
2463(d)); and
(D) General Note 3(a)(iv) to the Harmonized Tariff
Schedule.
(7) Limitation.--The quantity of cotton entered into the
United States during any marketing year under the special
import quota established under this subsection may not exceed
the equivalent of 10 week's consumption of upland cotton by
domestic mills at the seasonally adjusted average rate of the
3 months immediately preceding the first special import quota
established in any marketing year.
(b) Limited Global Import Quota for Upland Cotton.--
(1) Definitions.--In this subsection:
(A) Demand.--The term ``demand'' means--
(i) the average seasonally adjusted annual rate of domestic
mill consumption of cotton during the most recent 3 months
for which official data of the Department of Agriculture (as
determined by the Secretary) are available; and
(ii) the larger of--
(I) average exports of upland cotton during the preceding 6
marketing years; or
(II) cumulative exports of upland cotton plus outstanding
export sales for the marketing year in which the quota is
established.
(B) 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.
(C) Supply.--The term ``supply'' means, using the latest
official data of the Department of Agriculture--
(i) the carryover 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.
(2) Program.--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 the 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 official data of the Department of Agriculture are
available or as estimated by the Secretary.
(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) 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.
(3) No overlap.--Notwithstanding paragraph (2), a quota
period may not be established that overlaps an existing quota
period or a special quota period established under subsection
(a).
(c) Economic Adjustment Assistance to Users of Upland
Cotton.--
(1) In general.--Subject to paragraph (2), the Secretary
shall, on a monthly basis, make economic adjustment
assistance available to domestic users of upland cotton in
the form of payments for all documented use of that upland
cotton during the previous monthly period regardless of the
origin of the upland cotton.
(2) Value of assistance.--Effective beginning on August 1,
2012, the value of the assistance provided under paragraph
(1) shall be 3 cents per pound.
(3) Allowable purposes.--Economic adjustment assistance
under this subsection shall be made available only to
domestic users of upland cotton that certify that the
assistance shall be used only to acquire, construct, install,
modernize, develop, convert, or expand land, plant,
buildings, equipment, facilities, or machinery.
(4) Review or audit.--The Secretary may conduct such review
or audit of the records of a domestic user under this
subsection as the Secretary determines necessary to carry out
this subsection.
(5) Improper use of assistance.--If the Secretary
determines, after a review or audit of the records of the
domestic user, that economic adjustment assistance under this
subsection was not used for the purposes specified in
paragraph (3), the domestic user shall be--
(A) liable for the repayment of the assistance to the
Secretary, plus interest, as determined by the Secretary; and
(B) ineligible to receive assistance under this subsection
for a period of 1 year following the determination of the
Secretary.
SEC. 1208. SPECIAL COMPETITIVE PROVISIONS FOR EXTRA LONG
STAPLE COTTON.
(a) Competitiveness Program.--Notwithstanding any other
provision of law, during the period beginning on the date of
enactment of this Act through July 31, 2018, the Secretary
shall carry out a program--
(1) to maintain and expand the domestic use of extra long
staple cotton produced in the United States;
(2) to increase exports of extra long staple cotton
produced in the United States; and
(3) to ensure that extra long staple cotton produced in the
United States remains competitive in world markets.
(b) Payments Under Program; Trigger.--Under the program,
the Secretary shall make payments available under this
section whenever--
(1) for a consecutive 4-week period, the world market price
for the lowest priced competing growth of extra long staple
cotton (adjusted to United States quality and location and
for other factors affecting the competitiveness of such
cotton), as determined by the Secretary, is below the
prevailing United States price for a competing growth of
extra long staple cotton; and
(2) the lowest priced competing growth of extra long staple
cotton (adjusted to United States quality and location and
for other factors affecting the competitiveness of such
cotton), as determined by the Secretary, is less than 134
percent of the loan rate for extra long staple cotton.
(c) Eligible Recipients.--The Secretary shall make payments
available under this section to domestic users of extra long
staple cotton produced in the United States and exporters of
extra long staple cotton produced in the United States that
enter into an agreement with the Commodity Credit Corporation
to participate in the program under this section.
(d) Payment Amount.--Payments under this section shall be
based on the amount of the difference in the prices referred
to in subsection (b)(1) during the fourth week of the
consecutive 4-week period multiplied by the amount of
documented purchases by domestic users and sales for export
by exporters made in the week following such a consecutive 4-
week period.
[[Page S4006]]
SEC. 1209. AVAILABILITY OF RECOURSE LOANS FOR HIGH MOISTURE
FEED GRAINS AND SEED COTTON.
(a) High Moisture Feed Grains.--
(1) Definition of high moisture state.--In this subsection,
the term ``high moisture state'' means corn or grain sorghum
having a moisture content in excess of Commodity Credit
Corporation standards for marketing assistance loans made by
the Secretary under section 1201.
(2) Recourse loans available.--For each of the 2013 through
2017 crops of corn and grain sorghum, the Secretary shall
make available recourse loans, as determined by the
Secretary, to producers on a farm that--
(A) normally harvest all or a portion of their crop of corn
or grain sorghum in a high moisture state;
(B) present--
(i) certified scale tickets from an inspected, certified
commercial scale, including a licensed warehouse, feedlot,
feed mill, distillery, or other similar entity approved by
the Secretary, pursuant to regulations issued by the
Secretary; or
(ii) field or other physical measurements of the standing
or stored crop in regions of the United States, as determined
by the Secretary, that do not have certified commercial
scales from which certified scale tickets may be obtained
within reasonable proximity of harvest operation;
(C) certify that the producers on the farm were the owners
of the feed grain at the time of delivery to, and that the
quantity to be placed under loan under this subsection was in
fact harvested on the farm and delivered to, a feedlot, feed
mill, or commercial or on-farm high-moisture storage
facility, or to a facility maintained by the users of corn
and grain sorghum in a high moisture state; and
(D) comply with deadlines established by the Secretary for
harvesting the corn or grain sorghum and submit applications
for loans under this subsection within deadlines established
by the Secretary.
(3) Eligibility of acquired feed grains.--A loan under this
subsection shall be made on a quantity of corn or grain
sorghum of the same crop acquired by the producer equivalent
to a quantity determined by multiplying--
(A) the acreage of the corn or grain sorghum in a high
moisture state harvested on the farm of the producer; by
(B) the lower of the actual average yield used to make
payments under subtitle A or the actual yield on a field, as
determined by the Secretary, that is similar to the field
from which the corn or grain sorghum was obtained.
(b) Recourse Loans Available for Seed Cotton.--For each of
the 2013 through 2017 crops of upland cotton and extra long
staple cotton, the Secretary shall make available recourse
seed cotton loans, as determined by the Secretary, on any
production.
(c) Repayment Rates.--Repayment of a recourse loan made
under this section shall be at the loan rate established for
the commodity by the Secretary, plus interest (determined in
accordance with section 163 of the Federal Agriculture
Improvement and Reform Act of 1996 (7 U.S.C. 7283)).
SEC. 1210. ADJUSTMENTS OF LOANS.
(a) Adjustment Authority.--Subject to subsection (e), the
Secretary may make appropriate adjustments in the loan rates
for any loan commodity (other than cotton) for differences in
grade, type, quality, location, and other factors.
(b) Manner of Adjustment.--The adjustments under subsection
(a) shall, to the maximum extent practicable, be made in such
a 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 in accordance with
this subtitle and subtitles C through E.
(c) Adjustment on County Basis.--
(1) In general.--The Secretary may establish loan rates for
a crop for producers in individual counties in a manner that
results in the lowest loan rate being 95 percent of the
national average loan rate, if those loan rates do not result
in an increase in outlays.
(2) Prohibition.--Adjustments under this subsection shall
not result in an increase in the national average loan rate
for any year.
(d) Adjustment in Loan Rate for Cotton.--
(1) In general.--The Secretary may make appropriate
adjustments in the loan rate for cotton for differences in
quality factors.
(2) Revisions to quality adjustments for upland cotton.--
(A) In general.--Not later than 180 days after the date of
enactment of this Act, the Secretary shall implement
revisions in the administration of the marketing assistance
loan program for upland cotton to more accurately and
efficiently reflect market values for upland cotton.
(B) Mandatory revisions.--Revisions under subparagraph (A)
shall include--
(i) the elimination of warehouse location differentials;
(ii) the establishment of differentials for the various
quality factors and staple lengths of cotton based on a 3-
year, weighted moving average of the weighted designated spot
market regions, as determined by regional production;
(iii) the elimination of any artificial split in the
premium or discount between upland cotton with a 32 or 33
staple length due to micronaire; and
(iv) a mechanism to ensure that no premium or discount is
established that exceeds the premium or discount associated
with a leaf grade that is 1 better than the applicable color
grade.
(C) Discretionary revisions.--Revisions under subparagraph
(A) may include--
(i) the use of non-spot market price data, in addition to
spot market price data, that would enhance the accuracy of
the price information used in determining quality adjustments
under this subsection;
(ii) adjustments in the premiums or discounts associated
with upland cotton with a staple length of 33 or above due to
micronaire with the goal of eliminating any unnecessary
artificial splits in the calculations of the premiums or
discounts; and
(iii) such other adjustments as the Secretary determines
appropriate, after consultations conducted in accordance with
paragraph (3).
(3) Consultation with private sector.--
(A) Prior to revision.--In making adjustments to the loan
rate for cotton (including any review of the adjustments) as
provided in this subsection, the Secretary shall consult with
representatives of the United States cotton industry.
(B) Inapplicability of federal advisory committee act.--The
Federal Advisory Committee Act (5 U.S.C. App.) shall not
apply to consultations under this subsection.
(4) Review of adjustments.--The Secretary may review the
operation of the upland cotton quality adjustments
implemented pursuant to this subsection and may make further
revisions to the administration of the loan program for
upland cotton, by--
(A) revoking or revising any actions taken under paragraph
(2)(B); or
(B) revoking or revising any actions taken or authorized to
be taken under paragraph (2)(C).
(e) Rice.--The Secretary shall not make adjustments in the
loan rates for long grain rice and medium grain rice, except
for differences in grade and quality (including milling
yields).
Subtitle C--Sugar
SEC. 1301. SUGAR PROGRAM.
(a) Continuation of Current Program and Loan Rates.--
(1) Sugarcane.--Section 156(a)(5) of the Federal
Agriculture Improvement and Reform Act of 1996 (7 U.S.C.
7272(a)(5)) is amended by striking ``the 2012 crop year'' and
inserting ``each of the 2012 through 2017 crop years''.
(2) Sugar beets.--Section 156(b)(2) of the Federal
Agriculture Improvement and Reform Act of 1996 (7 U.S.C.
7272(b)(2)) is amended by striking ``2012'' and inserting
``2017''.
(3) Effective period.--Section 156(i) of the Federal
Agriculture Improvement and Reform Act of 1996 (7 U.S.C.
7272(i)) is amended by striking ``2012'' and inserting
``2017''.
(b) Flexible Marketing Allotments for Sugar.--
(1) Sugar estimates.--Section 359b(a)(1) of the
Agricultural Adjustment Act of 1938 (7 U.S.C. 1359bb(a)(1))
is amended by striking ``2012'' and inserting ``2017''.
(2) Effective period.--Section 359l(a) of the Agricultural
Adjustment Act of 1938 (7 U.S.C. 1359ll(a)) is amended by
striking ``2012'' and inserting ``2017''.
Subtitle D--Dairy
PART I--DAIRY PRODUCTION MARGIN PROTECTION AND DAIRY MARKET
STABILIZATION PROGRAMS
SEC. 1401. DEFINITIONS.
In this part:
(1) Actual dairy production margin.--The term ``actual
dairy production margin'' means the difference between the
all-milk price and the average feed cost, as calculated under
section 1402.
(2) All-milk price.--The term ``all-milk price'' means the
average price received, per hundredweight of milk, by dairy
operations for all milk sold to plants and dealers in the
United States, as determined by the Secretary.
(3) Annual production history.--The term ``annual
production history'' means the production history determined
for a participating dairy operation under section 1413(b)
whenever the participating dairy operation purchases
supplemental production margin protection.
(4) Average feed cost.--The term ``average feed cost''
means the average cost of feed used by a dairy operation to
produce a hundredweight of milk, determined under section
1402 using the sum of the following:
(A) The product determined by multiplying 1.0728 by the
price of corn per bushel.
(B) The product determined by multiplying 0.00735 by the
price of soybean meal per ton.
(C) The product determined by multiplying 0.0137 by the
price of alfalfa hay per ton.
(5) Basic production history.--The term ``basic production
history'' means the production history determined for a
participating dairy operation under section 1413(a) for
provision of basic production margin protection.
(6) Consecutive 2-month period.--The term ``consecutive 2-
month period'' refers to the 2-month period consisting of the
months of January and February, March and April, May and
June, July and August, September and October, or November and
December, respectively.
(7) Dairy operation.--
(A) In general.--The term ``dairy operation'' means, as
determined by the Secretary, 1 or more dairy producers that
produce and market milk as a single dairy operation in which
each dairy producer--
(i) shares in the pooling of resources and a common
ownership structure;
[[Page S4007]]
(ii) is at risk in the production of milk on the dairy
operation; and
(iii) contributes land, labor, management, equipment, or
capital to the dairy operation.
(B) Additional ownership structures.--The Secretary shall
determine additional ownership structures to be covered by
the definition of dairy operation.
(8) Handler.--
(A) In general.--The term ``handler'' means the initial
individual or entity making payment to a dairy operation for
milk produced in the United States and marketed for
commercial use.
(B) Producer-handler.--The term includes a ``producer-
handler'' when the producer satisfies the definition in
subparagraph (A).
(9) Participating dairy operation.--The term
``participating dairy operation'' means a dairy operation
that--
(A) signs up under section 1412 to participate in the
production margin protection program under subpart A; and
(B) as a result, also participates in the stabilization
program under subpart B.
(10) Production margin protection program.--The term
``production margin protection program'' means the dairy
production margin protection program required by subpart A.
(11) Secretary.--The term ``Secretary'' means the Secretary
of Agriculture.
(12) Stabilization program.--The term ``stabilization
program'' means the dairy market stabilization program
required by subpart B for all participating dairy operations.
(13) Stabilization program base.--The term ``stabilization
program base'', with respect to a participating dairy
operation, means the stabilization program base calculated
for the participating dairy operation under section 1431(b).
(14) United states.--The term ``United States'', in a
geographical sense, means the 50 States, the District of
Columbia, American Samoa, Guam, the Commonwealth of the
Northern Mariana Islands, the Commonwealth of Puerto Rico,
the Virgin Islands of the United States, and any other
territory or possession of the United States.
SEC. 1402. CALCULATION OF AVERAGE FEED COST AND ACTUAL DAIRY
PRODUCTION MARGINS.
(a) Calculation of Average Feed Cost.--The Secretary shall
calculate the national average feed cost for each month using
the following data:
(1) The price of corn for a month shall be the price
received during that month by farmers in the United States
for corn, as reported in the monthly Agricultural Prices
report by the Secretary.
(2) The price of soybean meal for a month shall be the
central Illinois price for soybean meal, as reported in the
Market News Monthly Soybean Meal Price Report by the
Secretary.
(3) The price of alfalfa hay for a month shall be the price
received during that month by farmers in the United States
for alfalfa hay, as reported in the monthly Agricultural
Prices report by the Secretary.
(b) Calculation of Actual Dairy Production Margins.--
(1) Production margin protection program.--For use in the
production margin protection program under subpart A, the
Secretary shall calculate the actual dairy production margin
for each consecutive 2-month period by subtracting--
(A) the average feed cost for that consecutive 2-month
period, determined in accordance with subsection (a); from
(B) the all-milk price for that consecutive 2-month period.
(2) Stabilization program.--For use in the stabilization
program under subpart B, the Secretary shall calculate each
month the actual dairy production margin for the preceding
month by subtracting--
(A) the average feed cost for that preceding month,
determined in accordance with subsection (a); from
(B) the all-milk price for that preceding month.
(3) Time for calculations.--The calculations required by
paragraphs (1) and (2) shall be made as soon as practicable
using the full month price of the applicable reference month.
Subpart A--Dairy Production Margin Protection Program
SEC. 1411. ESTABLISHMENT OF DAIRY PRODUCTION MARGIN
PROTECTION PROGRAM.
Effective not later than 120 days after the effective date
of this subtitle, the Secretary shall establish and
administer a dairy production margin protection program under
which participating dairy operations are paid--
(1) basic production margin protection program payments
under section 1414 when actual dairy production margins are
less than the threshold levels for such payments; and
(2) supplemental production margin protection program
payments under section 1415 if purchased by a participating
dairy operation.
SEC. 1412. PARTICIPATION OF DAIRY OPERATIONS IN PRODUCTION
MARGIN PROTECTION PROGRAM.
(a) Eligibility.--All dairy operations in the United States
shall be eligible to participate in the production margin
protection program, except that a participating dairy
operation shall be required to register with the Secretary
before the participating dairy operation may receive--
(1) basic production margin protection program payments
under section 1414; and
(2) if the participating dairy operation purchases
supplemental production margin protection under section 1415,
supplemental production margin protection program payments
under such section.
(b) Registration Process.--
(1) In general.--The Secretary shall specify the manner and
form by which a participating dairy operation may register to
participate in the production margin protection program.
(2) Treatment of multiproducer dairy operations.--If a
participating dairy operation is operated by more than 1
dairy producer, all of the dairy producers of the
participating dairy operation shall be treated as a single
dairy operation for purposes of--
(A) registration to receive basic production margin
protection and election to purchase supplemental production
margin protection;
(B) payment of the participation fee under subsection (d)
and producer premiums under section 1415; and
(C) participation in the stabilization program under
subtitle B.
(3) Treatment of producers with multiple dairy
operations.--If a dairy producer operates 2 or more dairy
operations, each dairy operation of the producer shall
separately register to receive basic production margin
protection and purchase supplemental production margin
protection and only those dairy operations so registered
shall be covered by the stabilization program.
(c) Time for Registration.--
(1) Existing dairy operations.--During the 15-month period
beginning on the date of the initiation of the registration
period for the production margin protection program, a dairy
operation that is actively engaged as of such date may
register with the Secretary--
(A) to receive basic production margin protection; and
(B) if the dairy operation elects, to purchase supplemental
production margin protection.
(2) New entrants.--A dairy producer that has no existing
interest in a dairy operation as of the date of the
initiation of the registration period for the production
margin protection program, but that, after such date,
establishes a new dairy operation, may register with the
Secretary during the 1-year period beginning on the date on
which the dairy operation first markets milk commercially--
(A) to receive basic production margin protection; and
(B) if the dairy operation elects, to purchase supplemental
production margin protection.
(d) Transition From MILC to Production Margin Protection.--
(1) Definition of transition period.--In this subsection,
the term ``transition period'' means the period during which
the milk income loss program established under section 1506
of the Food, Conservation, and Energy Act of 2008 (7 U.S.C.
8773) and the production margin protection program under this
subtitle are both in existence.
(2) Notice of availability.--Not later than 30 days after
the date of enactment of this Act, the Secretary shall
publish a notice in the Federal Register to inform dairy
operations of the availability of basic production margin
protection and supplemental production margin protection,
including the terms of the protection and information about
the option of dairy operations during the transition period
to make an election described in paragraph (3).
(3) Election.--Except as provided in paragraph (4), a dairy
operation may elect to participate in either the milk income
loss program established under section 1506 of the Food,
Conservation, and Energy Act of 2008 (7 U.S.C. 8773) or the
production margin protection program under this subtitle for
the duration of the transition period.
(4) Transfer to production margin protection.--A dairy
operation that elects to participate in the milk income loss
program established under section 1506 of the Food,
Conservation, and Energy Act of 2008 (7 U.S.C. 8773) during
the transition period may, at any time, make a permanent
transfer to the production margin protection program.
(e) Administration Fee.--
(1) Administration fee required.--Except as provided in
paragraph (5), a participating dairy operation shall--
(A) pay an administration fee under this subsection to
register to participate in the production margin protection
program; and
(B) pay the administration fee annually thereafter to
continue to participate in the production margin protection
program.
(2) Fee amount.--The administration fee for a participating
dairy operation for a calendar year shall be based on the
pounds of milk (in millions) marketed by the participating
dairy operation in the previous calendar year, as follows:
------------------------------------------------------------------------
Pounds Marketed (in millions) Administration Fee
------------------------------------------------------------------------
less than 1 $100
1 to 5 $250
more than 5 to 10 $350
more than 10 to 40 $1,000
more than 40 $2,500
------------------------------------------------------------------------
(3) Deposit of fees.--All administration fees collected
under this subsection shall be
[[Page S4008]]
credited to the fund or account used to cover the costs
incurred to administer the production margin protection
program and the stabilization program and shall be available
to the Secretary, without further appropriation and until
expended, for use or transfer as provided in paragraph (4).
(4) Use of fees.--The Secretary shall use administration
fees collected under this subsection--
(A) to cover administrative costs of the production margin
protection program and stabilization program; and
(B) to cover costs of the Department of Agriculture
relating to reporting of dairy market news, carrying out the
amendments made by section 1476, and carrying out section 273
of the Agricultural Marketing Act of 1946 (7 U.S.C. 1637b)),
to the extent funds remain available after operation of
subparagraph (A).
(5) Waiver.--The Secretary shall waive or reduce the
administration fee required under paragraph (1) in the case
of a limited-resource dairy operation, as defined by the
Secretary.
(f) Limitation.--A dairy operation may only participate in
the production margin protection program or the livestock
gross margin for dairy program under the Federal Crop
Insurance Act (7 U.S.C. 1501 et seq.), but not both.
SEC. 1413. PRODUCTION HISTORY OF PARTICIPATING DAIRY
OPERATIONS.
(a) Production History for Basic Production Margin
Protection.--
(1) Determination required.--For purposes of providing
basic production margin protection, the Secretary shall
determine the basic production history of a participating
dairy operation.
(2) Calculation.--Except as provided in paragraph (3), the
basic production history of a participating dairy operation
for basic production margin protection is equal to the
highest annual milk marketings of the participating dairy
operation during any 1 of the 3 calendar years immediately
preceding the calendar year in which the participating dairy
operation first signed up to participate in the production
margin protection program.
(3) Election by new dairy operations.--In the case of a
participating dairy operation that has been in operation for
less than a year, the participating dairy operation shall
elect 1 of the following methods for the Secretary to
determine the basic production history of the participating
dairy operation:
(A) The volume of the actual milk marketings for the months
the participating dairy operation has been in operation
extrapolated to a yearly amount.
(B) An estimate of the actual milk marketings of the
participating dairy operation based on the herd size of the
participating dairy operation relative to the national
rolling herd average data published by the Secretary.
(4) No change in production history for basic production
margin protection.--Once the basic production history of a
participating dairy operation is determined under paragraph
(2) or (3), the basic production history shall not be
subsequently changed for purposes of determining the amount
of any basic production margin protection payments for the
participating dairy operation made under section 1414.
(b) Annual Production History for Supplemental Production
Margin Protection.--
(1) Determination required.--For purposes of providing
supplemental production margin protection for a participating
dairy operation that purchases supplemental production margin
protection for a year under section 1415, the Secretary shall
determine the annual production history of the participating
dairy operation under paragraph (2).
(2) Calculation.--The annual production history of a
participating dairy operation for a year is equal to the
actual milk marketings of the participating dairy operation
during the preceding calendar year.
(3) New dairy operations.--Subsection (a)(3) shall apply
with respect to determining the annual production history of
a participating dairy operation that has been in operation
for less than a year.
(c) Required Information.--A participating dairy operation
shall provide all information that the Secretary may require
in order to establish--
(1) the basic production history of the participating dairy
operation under subsection (a); and
(2) the production history of the participating dairy
operation whenever the participating dairy operation
purchases supplemental production margin protection under
section 1415.
(d) Transfer of Production Histories.--
(1) Transfer by sale or lease.--In promulgating the rules
to initiate the production margin protection program, the
Secretary shall specify the conditions under which and the
manner by which the production history of a participating
dairy operation may be transferred by sale or lease.
(2) Coverage level.--
(A) Basic production margin protection.--A purchaser or
lessee to whom the Secretary transfers a basic production
history under this subsection shall not obtain a different
level of basic production margin protection than the basic
production margin protection coverage held by the seller or
lessor from whom the transfer was obtained.
(B) Supplemental production margin protection.--A purchaser
or lessee to whom the Secretary transfers an annual
production history under this subsection shall not obtain a
different level of supplemental production margin protection
coverage than the supplemental production margin protection
coverage in effect for the seller or lessor from whom the
transfer was obtained for the calendar year in which the
transfer was made.
(e) Movement and Transfer of Production History.--
(1) Movement and transfer authorized.--Subject to paragraph
(2), if a participating dairy operation moves from 1 location
to another location, the participating dairy operation may
transfer the basic production history and annual production
history associated with the participating dairy operation.
(2) Notification requirement.--A participating dairy
operation shall notify the Secretary of any move of a
participating dairy operation under paragraph (1).
(3) Subsequent occupation of vacated location.--A party
subsequently occupying a participating dairy operation
location vacated as described in paragraph (1) shall have no
interest in the basic production history or annual production
history previously associated with the participating dairy
operation at such location.
SEC. 1414. BASIC PRODUCTION MARGIN PROTECTION.
(a) Payment Threshold.--The Secretary shall make a payment
to participating dairy operations in accordance with
subsection (b) whenever the average actual dairy production
margin for a consecutive 2-month period is less than $4.00
per hundredweight of milk.
(b) Basic Production Margin Protection Payment.--The basic
production margin protection payment for a participating
dairy operation for a consecutive 2-month period shall be
equal to the product obtained by multiplying--
(1) the difference between the average actual dairy
production margin for the consecutive 2-month period and
$4.00, except that, if the difference is more than $4.00, the
Secretary shall use $4.00; by
(2) the lesser of--
(A) 80 percent of the production history of the
participating dairy operation, divided by 6; or
(B) the actual quantity of milk marketed by the
participating dairy operation during the consecutive 2-month
period.
SEC. 1415. SUPPLEMENTAL PRODUCTION MARGIN PROTECTION.
(a) Election of Supplemental Production Margin
Protection.--A participating dairy operation may annually
purchase supplemental production margin protection to
protect, during the calendar year for which purchased, a
higher level of the income of a participating dairy operation
than the income level guaranteed by basic production margin
protection under section 1414.
(b) Selection of Payment Threshold.--A participating dairy
operation purchasing supplemental production margin
protection for a year shall elect a coverage level that is
higher, in any increment of $0.50, than the payment threshold
for basic production margin protection specified in section
1414(a), but not to exceed $8.00.
(c) Coverage Percentage.--A participating dairy operation
purchasing supplemental production margin protection for a
year shall elect a percentage of coverage equal to not more
than 90 percent, nor less than 25 percent, of the annual
production history of the participating dairy operation.
(d) Premiums for Supplemental Production Margin
Protection.--
(1) Premiums required.--A participating dairy operation
that purchases supplemental production margin protection
shall pay an annual premium equal to the product obtained by
multiplying--
(A) the coverage percentage elected by the participating
dairy operation under subsection (c);
(B) the annual production history of the participating
dairy operation; and
(C) the premium per hundredweight of milk, as specified in
the applicable table under paragraph (2) or (3).
(2) Premium per hundredweight for first 4 million pounds of
production.--For the first 4,000,000 pounds of milk
marketings included in the annual production history of a
participating dairy operation, the premium per hundredweight
corresponding to each coverage level specified in the
following table is as follows:
------------------------------------------------------------------------
Coverage Level Premium per Cwt.
------------------------------------------------------------------------
$4.50 $0.01
$5.00 $0.02
$5.50 $0.035
$6.00 $0.045
$6.50 $0.09
$7.00 $0.40
$7.50 $0.60
$8.00 $0.95
------------------------------------------------------------------------
(3) Premium per hundredweight for production in excess of 4
million pounds.--For milk marketings in excess of 4,000,000
pounds included in the annual production history of a
participating dairy operation, the premium per hundredweight
corresponding to each coverage level is as follows:
------------------------------------------------------------------------
Coverage Level Premium per Cwt.
------------------------------------------------------------------------
$4.50 $0.02
$5.00 $0.04
$5.50 $0.10
$6.00 $0.15
[[Page S4009]]
$6.50 $0.29
$7.00 $0.62
$7.50 $0.83
$8.00 $1.06
------------------------------------------------------------------------
(4) Time for payment.--In promulgating the rules to
initiate the production margin protection program, the
Secretary shall provide more than 1 method by which a
participating dairy operation that purchases supplemental
production margin protection for a calendar year may pay the
premium under this subsection for that year in any manner
that maximizes participating dairy operation payment
flexibility and program integrity.
(e) Premium Obligations.--
(1) Pro-ration of premium for new dairy operations.--A
participating dairy operation described in section 1412(c)(2)
that purchases supplemental production margin protection for
a calendar year after the start of the calendar year shall
pay a pro-rated premium for that calendar year based on the
portion of the calendar year for which the participating
dairy operation purchases the coverage.
(2) Legal obligation.--A participating dairy operation that
purchases supplemental production margin protection for a
calendar year shall be legally obligated to pay the
applicable premium for that calendar year, except that the
Secretary may waive that obligation, under terms and
conditions determined by the Secretary, for 1 or more
producers in any participating dairy operation in the case of
death, retirement, permanent dissolution of a participating
dairy operation, or other circumstances as the Secretary
considers appropriate to ensure the integrity of the program.
(f) Supplemental Payment Threshold.--A participating dairy
operation with supplemental production margin protection
shall receive a supplemental production margin protection
payment whenever the average actual dairy production margin
for a consecutive 2-month period is less than the coverage
level threshold selected by the participating dairy operation
under subsection (b).
(g) Supplemental Production Margin Protection Payments.--
(1) In general.--The supplemental production margin
protection payment for a participating dairy operation is in
addition to the basic production margin protection payment.
(2) Amount of payment.--The supplemental production margin
protection payment for the participating dairy operation
shall be determined as follows:
(A) The Secretary shall calculate the difference between
the coverage level threshold selected by the participating
dairy operation under subsection (b) and the greater of--
(i) the average actual dairy production margin for the
consecutive 2-month period; or
(ii) $4.00.
(B) The amount determined under subparagraph (A) shall be
multiplied by the percentage selected by the participating
dairy operation under subsection (c) and by the lesser of the
following:
(i) The annual production history of the participating
dairy operation, divided by 6.
(ii) The actual amount of milk marketed by the
participating dairy operation during the consecutive 2-month
period.
SEC. 1416. EFFECT OF FAILURE TO PAY ADMINISTRATION FEES OR
PREMIUMS.
(a) Loss of Benefits.--A participating dairy operation that
fails to pay the required administration fee under section
1412 or is in arrears on premium payments for supplemental
production margin protection under section 1415--
(1) remains legally obligated to pay the administration fee
or premiums, as the case may be; and
(2) may not receive basic production margin protection
payments or supplemental production margin protection
payments until the fees or premiums are fully paid.
(b) Enforcement.--The Secretary may take such action as
necessary to collect administration fees and premium payments
for supplemental production margin protection.
Subpart B--Dairy Market Stabilization Program
SEC. 1431. ESTABLISHMENT OF DAIRY MARKET STABILIZATION
PROGRAM.
(a) Program Required; Purpose.--Effective not later than
120 days after the effective date of this subtitle, the
Secretary shall establish and administer a dairy market
stabilization program applicable to participating dairy
operations for the purpose of assisting in balancing the
supply of milk with demand when participating dairy
operations are experiencing low or negative operating
margins.
(b) Election of Stabilization Program Base Calculation
Method.--
(1) Election.--When a dairy operation signs up under
section 1412 to participate in the production margin
protection program, the dairy operation shall inform the
Secretary of the method by which the stabilization program
base for the participating dairy operation will be calculated
under paragraph (3).
(2) Change in calculation method.--A participating dairy
operation may change the stabilization program base
calculation method to be used for a calendar year by
notifying the Secretary of the change not later than a date
determined by the Secretary.
(3) Calculation methods.--A participating dairy operation
may elect either of the following methods for calculation of
the stabilization program base for the participating dairy
operation:
(A) The volume of the average monthly milk marketings of
the participating dairy operation for the 3 months
immediately preceding the announcement by the Secretary that
the stabilization program will become effective.
(B) The volume of the monthly milk marketings of the
participating dairy operation for the same month in the
preceding year as the month for which the Secretary has
announced the stabilization program will become effective.
SEC. 1432. THRESHOLD FOR IMPLEMENTATION AND REDUCTION IN
DAIRY PAYMENTS.
(a) When Stabilization Program Required.--Except as
provided in subsection (b), the Secretary shall announce that
the stabilization program is in effect and order reduced
payments by handlers to participating dairy operations that
exceed the applicable percentage of the participating dairy
operation's stabilization program base whenever--
(1) the actual dairy production margin has been $6.00 or
less per hundredweight of milk for each of the immediately
preceding 2 months; or
(2) the actual dairy production margin has been $4.00 or
less per hundredweight of milk for the immediately preceding
month.
(b) Exception.--If any of the conditions described in
section 1436(b) have been met during the 2-month period
immediately preceding the month in which the announcement
under subsection (a) would otherwise be made by the Secretary
in the absence of this exception, the Secretary shall--
(1) suspend the stabilization program;
(2) refrain from making the announcement under subsection
(a) to implement order the stabilization payment; or
(3) order reduced payments.
(c) Effective Date for Implementation of Payment
Reductions.--Reductions in dairy payments shall commence
beginning on the first day of the month immediately following
the date of the announcement by the Secretary under
subsection (a).
SEC. 1433. MILK MARKETINGS INFORMATION.
(a) Collection of Milk Marketing Data.--The Secretary shall
establish, by regulation, a process to collect from
participating dairy operations and handlers such information
that the Secretary considers necessary for each month during
which the stabilization program is in effect.
(b) Reduce Regulatory Burden.--When implementing the
process under subsection (a), the Secretary shall minimize
the regulatory burden on participating dairy operations and
handlers.
SEC. 1434. CALCULATION AND COLLECTION OF REDUCED DAIRY
OPERATION PAYMENTS.
(a) Reduced Participating Dairy Operation Payments
Required.--During any month in which payment reductions are
in effect under the stabilization program, each handler shall
reduce payments to each participating dairy operation from
whom the handler receives milk.
(b) Reductions Based on Actual Dairy Production Margin.--
(1) Reduction requirement 1.--If the Secretary determines
that the average actual dairy production margin has been less
than $6.00 but greater than $5.00 per hundredweight of milk
for 2 consecutive months, the handler shall make payments to
a participating dairy operation for a month based on the
greater of the following:
(A) 98 percent of the stabilization program base of the
participating dairy operation.
(B) 94 percent of the marketings of milk for the month by
the participating dairy operation.
(2) Reduction requirement 2.--If the Secretary determines
that the average actual dairy production margin has been less
than $5.00 but greater than $4.00 for 2 consecutive months,
the handler shall make payments to a participating dairy
operation for a month based on the greater of the following:
(A) 97 percent of the stabilization program base of the
participating dairy operation.
(B) 93 percent of the marketings of milk for the month by
the participating dairy operation.
(3) Reduction requirement 3.--If the Secretary determines
that the average actual dairy production margin has been
$4.00 or less for any 1 month, the handler shall make
payments to a participating dairy operation for a month based
on the greater of the following:
(A) 96 percent of the stabilization program base of the
participating dairy operation.
(B) 92 percent of the marketings of milk for the month by
the participating dairy operation.
(c) Continuation of Reductions.--The largest level of
payment reduction required under paragraph (1), (2), or (3)
of subsection (b) shall be continued for each month until the
Secretary suspends the stabilization program and terminates
payment reductions in accordance with section 1436.
(d) Payment Reduction Exception.--Notwithstanding any
preceding subsection of this section, a handler shall make no
payment reductions for a participating dairy operation for a
month if the participating dairy operation's milk marketings
for the month are equal to or less than the percentage of the
stabilization program base applicable to the participating
dairy operation
[[Page S4010]]
under paragraph (1), (2), or (3) of subsection (b).
SEC. 1435. REMITTING FUNDS TO THE SECRETARY AND USE OF FUNDS.
(a) Remitting Funds.--As soon as practicable after the end
of each month during which payment reductions are in effect
under the stabilization program, each handler shall remit to
the Secretary an amount equal to the amount by which payments
to participating dairy operations are reduced by the handler
under section 1434.
(b) Deposit of Remitted Funds.--All funds received under
subsection (a) shall be available to the Secretary, without
further appropriation and until expended, for use or transfer
as provided in subsection (c).
(c) Use of Funds.--
(1) Availability for certain commodity donations.--Not
later than 90 days after the funds described in subsection
(a) are due as determined by the Secretary, the Secretary
shall obligate the funds for the purpose of--
(A) purchasing dairy products for donation to food banks
and other programs that the Secretary determines appropriate;
and
(B) expanding consumption and building demand for dairy
products.
(2) No duplication of effort.--The Secretary shall ensure
that expenditures under paragraph (1) are compatible with,
and do not duplicate, programs supported by the dairy
research and promotion activities conducted under the Dairy
Production Stabilization Act of 1983 (7 U.S.C. 4501 et seq.).
(3) Accounting.--The Secretary shall keep an accurate
account of all funds expended under paragraph (1).
(d) Annual Report.--Not later than December 31 of each year
that the stabilization program is in effect, the Secretary
shall submit to the Committee on Agriculture of the House of
Representatives and the Committee on Agriculture, Nutrition,
and Forestry of the Senate a report that provides an accurate
accounting of--
(1) the funds received by the Secretary during the
preceding fiscal year under subsection (a);
(2) all expenditures made by the Secretary under subsection
(b) during the preceding fiscal year; and
(3) the impact of the stabilization program on dairy
markets.
(e) Enforcement.--If a participating dairy operation or
handler fails to remit or collect the amounts by which
payments to participating dairy operations are reduced under
section 1434, the participating dairy operation or handler
responsible for the failure shall be liable to the Secretary
for the amount that should have been remitted or collected,
plus interest. In addition to the enforcement authorities
available under section 1437, the Secretary may enforce this
subsection in the courts of the United States.
SEC. 1436. SUSPENSION OF REDUCED PAYMENT REQUIREMENT.
(a) Determination of Prices.--For purposes of this section:
(1) The price in the United States for cheddar cheese and
nonfat dry milk shall be determined by the Secretary.
(2) The world price of cheddar cheese and skim milk powder
shall be determined by the Secretary.
(b) Suspension Thresholds.--The stabilization program shall
be suspended or the Secretary shall refrain from making the
announcement under section 1432(a) if the Secretary
determines that--
(1) the actual dairy production margin is greater than
$6.00 per hundredweight of milk for 2 consecutive months;
(2) the actual dairy production margin is equal to or less
than $6.00 (but greater than $5.00) for 2 consecutive months,
and during the same 2 consecutive months--
(A) the price in the United States for cheddar cheese is
equal to or greater than the world price of cheddar cheese;
or
(B) the price in the United States for nonfat dry milk is
equal to or greater than the world price of skim milk powder;
(3) the actual dairy production margin is equal to or less
than $5.00 (but greater than $4.00) for 2 consecutive months,
and during the same 2 consecutive months--
(A) the price in the United States for cheddar cheese is
more than 5 percent above the world price of cheddar cheese;
or
(B) the price in the United States for nonfat dry milk is
more than 5 percent above the world price of skim milk
powder; or
(4) the actual dairy production margin is equal to or less
than $4.00 for 2 consecutive months, and during the same 2
consecutive months--
(A) the price in the United States for cheddar cheese is
more than 7 percent above the world price of cheddar cheese;
or
(B) the price in the United States for nonfat dry milk is
more than 7 percent above the world price of skim milk
powder.
(c) Implementation by Handlers.--Effective on the day after
the date of the announcement by the Secretary under
subsection (b) of the suspension of the stabilization
program, the handler shall cease reducing payments to
participating dairy operations under the stabilization
program.
(d) Condition on Resumption of Stabilization Program.--Upon
the announcement by the Secretary under subsection (b) that
the stabilization program has been suspended, the
stabilization program may not be implemented again until, at
the earliest--
(1) 2 months have passed, beginning on the first day of the
month immediately following the announcement by the
Secretary; and
(2) the conditions of section 1432(a) are again met.
SEC. 1437. ENFORCEMENT.
(a) Unlawful Act.--It shall be unlawful and a violation of
the this subpart for any person subject to the stabilization
program to willfully fail or refuse to provide, or delay the
timely reporting of, accurate information and remittance of
funds to the Secretary in accordance with this subpart.
(b) Order.--After providing notice and opportunity for a
hearing to an affected person, the Secretary may issue an
order against any person to cease and desist from continuing
any violation of this subpart.
(c) Appeal.--An order of the Secretary under subsection (b)
shall be final and conclusive unless an affected person files
an appeal of the order of the Secretary in United States
district court not later than 30 days after the date of the
issuance of the order. A finding of the Secretary in the
order shall be set aside only if the finding is not supported
by substantial evidence.
(d) Noncompliance With Order.--If a person subject to this
subpart fails to obey an order issued under subsection (b)
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, the United States
may apply to the appropriate United States district court for
enforcement of the order. If the court determines that the
order was lawfully made and duly served and that the person
violated the order, the court shall enforce the order.
SEC. 1438. AUDIT REQUIREMENTS.
(a) Audits of Dairy Operation and Handler Compliance.--
(1) Audits authorized.--If determined by the Secretary to
be necessary to ensure compliance by participating dairy
operations and handlers with the stabilization program, the
Secretary may conduct periodic audits of participating dairy
operations and handlers.
(2) Sample of dairy operations.--Any audit conducted under
this subsection shall include, at a minimum, investigation of
a statistically valid and random sample of participating
dairy operations.
(b) Submission of Results.--The Secretary shall submit the
results of any audit conducted under subsection (a) to the
Committee on Agriculture of the House of Representatives and
the Committee on Agriculture, Nutrition, and Forestry of the
Senate and include such recommendations as the Secretary
considers appropriate regarding the stabilization program.
SEC. 1439. STUDY; REPORT.
(a) In General.--The Secretary shall direct the Office of
the Chief Economist to conduct a study of the impacts of the
program established under section 1431(a).
(b) Considerations.--The study conducted under subsection
(a) shall consider--
(1) the economic impact of the program throughout the dairy
product value chain, including the impact on producers,
processors, domestic customers, export customers, actual
market growth and potential market growth, farms of different
sizes, and different regions and States; and
(2) the impact of the program on the competitiveness of the
United States dairy industry in international markets.
(c) Report.--Not later than December 1, 2016, the Office of
the Chief Economist shall submit to the Committee on
Agriculture of the House of Representatives and the Committee
on Agriculture, Nutrition, and Forestry of the Senate a
report that describes the results of the study conducted
under subsection (a).
Subpart C--Administration
SEC. 1451. DURATION.
The production margin protection program and the
stabilization program shall end on December 31, 2017.
SEC. 1452. ADMINISTRATION AND ENFORCEMENT.
(a) In General.--The Secretary shall promulgate regulations
to address administrative and enforcement issues involved in
carrying out the production margin protection, supplemental
production margin protection, and market stabilization
programs.
(b) Reconstitution and Eligibility Issues.--
(1) Reconstitution.--Using authorities under section
1001(f) and 1001B of the Food Security Act of 1985 (7 U.S.C.
1308(f), 1308-2), the Secretary shall promulgate regulations
to prohibit a dairy producer from reconstituting a dairy
operation for the sole purpose of the dairy producer--
(A) receiving basic margin protection;
(B) purchasing supplemental margin protection; or
(C) avoiding participation in the market stabilization
program.
(2) Eligibility issues.--Using authorities under section
1001(f) and 1001B of the Food Security Act of 1985 (7 U.S.C.
1308(f), 1308-2), the Secretary shall promulgate
regulations--
(A) to prohibit a scheme or device;
(B) to provide for equitable relief; and
(C) to provide for other issues affecting eligibility and
liability issues.
(3) Administrative appeals.--Using authorities under
section 1001(h) of the Food Security Act of 1985 (7 U.S.C.
1308(h)) and subtitle H of the Department of Agriculture
Reorganization Act (7 U.S.C. 6991 et seq.), the Secretary
shall promulgate regulations to provide for administrative
appeals of decisions of the Secretary that are adverse to
participants of the programs described in subsection (a).
[[Page S4011]]
PART II--DAIRY MARKET TRANSPARENCY
SEC. 1461. DAIRY PRODUCT MANDATORY REPORTING.
(a) Definitions.--Section 272(1)(A) of the Agricultural
Marketing Act of 1946 (7 U.S.C. 1637a(1)(A)) is amended by
inserting ``, or any other products that may significantly
aid price discovery in the dairy markets, as determined by
the Secretary'' after ``of 1937''.
(b) Mandatory Reporting for Dairy Products.--Section 273(b)
of the Agricultural Marketing Act of 1946 (7 U.S.C. 1637b(b))
is amended--
(1) by striking paragraph (1) and inserting the following
new paragraph:
``(1) In general.--In establishing the program, the
Secretary shall only--
``(A)(i) subject to the conditions described in paragraph
(2), require each manufacturer to report to the Secretary, no
less frequently than once per month, information concerning
the price, quantity, and moisture content of dairy products
sold by the manufacturer and any other product
characteristics that may significantly aid price discovery in
the dairy markets, as determined by the Secretary; and
``(ii) modify the format used to provide the information on
the day before the date of enactment of this subtitle to
ensure that the information can be readily understood by
market participants; and
``(B) require each manufacturer and other person storing
dairy products (including dairy products in cold storage) to
report to the Secretary, no less frequently than once per
month, information on the quantity of dairy products
stored.''; and
(2) in paragraph (2), by inserting ``or those that may
significantly aid price discovery in the dairy markets''
after ``Federal milk marketing order'' each place it appears
in subparagraphs (A), (B), and (C).
SEC. 1462. FEDERAL MILK MARKETING ORDER INFORMATION.
(a) Information Clearinghouse.--
(1) In general.--The Secretary shall, on behalf of each
milk marketing order issued under the Agricultural Adjustment
Act (7 U.S.C. 601 et seq.), reenacted with amendments by the
Agricultural Marketing Agreement Act of 1937, establish an
information clearinghouse for the purposes of educating the
public about the Federal milk marketing order system and any
marketing order referenda, including proposal information and
timelines that shall be kept current and updated as
information becomes available.
(2) Requirements.--Information under paragraph (1) shall
include--
(A) information on procedures by which cooperatives vote;
(B) if applicable, information on the manner by which
producers may cast an individual ballot;
(C) in applicable, instructions on the manner in which to
vote online;
(D) due dates for each specific referendum;
(E) the text of each referendum question under
consideration;
(F) a description in plain language of the question;
(G) any relevant background information to the question;
and
(H) any other information that increases Federal milk
marketing order transparency.
(b) Notification List for Upcoming Referendum.--Each
Federal milk marketing order shall--
(1) make available the information described in subsection
(b) through an Internet site; and
(2) publicize the information in major agriculture and
dairy-specific publications on upcoming referenda.
PART III--REPEAL OR REAUTHORIZATION OF OTHER DAIRY-RELATED PROVISIONS
SEC. 1471. REPEAL OF DAIRY PRODUCT PRICE SUPPORT AND MILK
INCOME LOSS CONTRACT PROGRAMS.
(a) Repeal of Dairy Product Price Support Program.--Section
1501 of the Food, Conservation, and Energy Act of 2008 (7
U.S.C. 8771) is repealed.
(b) Repeal of Milk Income Loss Contract Program.--
(1) Payments under milk income loss contract program.--
Section 1506(c)(3) of the Food, Conservation, and Energy Act
of 2008 (7 U.S.C. 8773(c)(3)) is amended--
(A) in subparagraph (A), by inserting ``and'' after the
semicolon;
(B) in subparagraph (B), by striking ``August 31, 2012, 45
percent; and'' and inserting ``June 30, 2013, 45 percent.'';
and
(C) by striking subparagraph (C).
(2) Extension.--Section 1506(h)(1) of the Food,
Conservation, and Energy Act of 2008 (7 U.S.C. 8773(h)(1)) is
amended by striking ``September 30, 2012'' and inserting
``June 30, 2013''.
(3) Repeal.--Effective July 1, 2013, section 1506 of the
Food, Conservation, and Energy Act of 2008 (7 U.S.C. 8773) is
repealed.
SEC. 1472. REPEAL OF DAIRY EXPORT INCENTIVE PROGRAM.
(a) Repeal.--Section 153 of the Food Security Act of 1985
(15 U.S.C. 713a 14) is repealed.
(b) Conforming Amendments.--Section 902(2) of the Trade
Sanctions Reform and Export Enhancement Act of 2000 (22
U.S.C. 7201(2)) is amended--
(1) by striking subparagraph (D); and
(2) by redesignating subparagraphs (E) and (F) as
subparagraphs (D) and (E), respectively.
SEC. 1473. EXTENSION OF DAIRY FORWARD PRICING PROGRAM.
Section 1502(e) of the Food, Conservation, and Energy Act
of 2008 (7 U.S.C. 8772(e)) is amended--
(1) in paragraph (1), by striking ``2012'' and inserting
``2017''; and
(2) in paragraph (2), by striking ``2015'' and inserting
``2020''.
SEC. 1474. EXTENSION OF DAIRY INDEMNITY PROGRAM.
Section 3 of Public Law 90 484 (7 U.S.C. 450l) is amended
by striking ``2012'' and inserting ``2017''.
SEC. 1475. EXTENSION OF DAIRY PROMOTION AND RESEARCH PROGRAM.
Section 113(e)(2) of the Dairy Production Stabilization Act
of 1983 (7 U.S.C. 4504(e)(2)) is amended by striking ``2012''
and inserting ``2017''.
SEC. 1476. EXTENSION OF FEDERAL MILK MARKETING ORDER REVIEW
COMMISSION.
Section 1509(a) of the Food, Conservation, and Energy Act
of 2008 (Public Law 110 246; 122 Stat. 1726) is amended by
inserting ``or other funds'' after ``Subject to the
availability of appropriations''.
PART IV--EFFECTIVE DATE
SEC. 1481. EFFECTIVE DATE.
Except as otherwise provided in this subtitle, this
subtitle and the amendments made by this subtitle take effect
on October 1, 2012.
Subtitle E--Supplemental Agricultural Disaster Assistance Programs
SEC. 1501. SUPPLEMENTAL AGRICULTURAL DISASTER ASSISTANCE
PROGRAMS.
(a) Definitions.--In this section:
(1) Eligible producer on a farm.--
(A) In general.--The term ``eligible producer on a farm''
means an individual or entity described in subparagraph (B)
that, as determined by the Secretary, assumes the production
and market risks associated with the agricultural production
of crops or livestock.
(B) Description.--An individual or entity referred to in
subparagraph (A) is--
(i) a citizen of the United States;
(ii) a resident alien;
(iii) a partnership of citizens of the United States; or
(iv) a corporation, limited liability corporation, or other
farm organizational structure organized under State law.
(2) Farm.--
(A) In general.--The term ``farm'' means, in relation to an
eligible producer on a farm, the total of all crop acreage in
all counties that is planted or intended to be planted for
harvest, for sale, or on-farm livestock feeding (including
native grassland intended for haying) by the eligible
producer.
(B) Aquaculture.--In the case of aquaculture, the term
``farm'' means, in relation to an eligible producer on a
farm, all fish being produced in all counties that are
intended to be harvested for sale by the eligible producer.
(C) Honey.--In the case of honey, the term ``farm'' means,
in relation to an eligible producer on a farm, all bees and
beehives in all counties that are intended to be harvested
for a honey crop for sale by the eligible producer.
(3) Farm-raised fish.--The term ``farm-raised fish'' means
any aquatic species that is propagated and reared in a
controlled environment.
(4) Livestock.--The term ``livestock'' includes--
(A) cattle (including dairy cattle);
(B) bison;
(C) poultry;
(D) sheep;
(E) swine;
(F) horses; and
(G) other livestock, as determined by the Secretary.
(b) Livestock Indemnity Payments.--
(1) Payments.--For each of fiscal years 2012 through 2017,
the Secretary shall use such sums as are necessary of the
funds of the Commodity Credit Corporation to make livestock
indemnity payments to eligible producers on farms that have
incurred livestock death losses in excess of the normal
mortality, as determined by the Secretary, due to--
(A) attacks by animals reintroduced into the wild by the
Federal Government or protected by Federal law, including
wolves; or
(B) adverse weather, as determined by the Secretary, during
the calendar year, including losses due to hurricanes,
floods, blizzards, disease, wildfires, extreme heat, and
extreme cold.
(2) Payment rates.--Indemnity payments to an eligible
producer on a farm under paragraph (1) shall be made at a
rate of 65 percent of the market value of the applicable
livestock on the day before the date of death of the
livestock, as determined by the Secretary.
(3) Special rule for payments made due to disease.--The
Secretary shall ensure that payments made to an eligible
producer under paragraph (1) are not made for the same
livestock losses for which compensation is provided pursuant
to section 10407(d) of the Animal Health Protection Act (7
U.S.C. 8306(d)).
(c) Livestock Forage Disaster Program.--
(1) Establishment.--There is established a livestock forage
disaster program to provide 1 source for livestock forage
disaster assistance for weather-related forage losses, as
determined by the Secretary, by combining--
(A) the livestock forage assistance functions of--
(i) the noninsured crop disaster assistance program
established by section 196 of the
[[Page S4012]]
Federal Agriculture Improvement and Reform Act of 1996 (7
U.S.C. 7333); and
(ii) the emergency assistance for livestock, honey bees,
and farm-raised fish program under section 531(e) of the
Federal Crop Insurance Act (7 U.S.C. 1531(e)) (as in
existence on the day before the date of enactment of this
Act); and
(B) the livestock forage disaster program under section
531(d) of the Federal Crop Insurance Act (7 U.S.C. 1531(d))
(as in existence on the day before the date of enactment of
this Act).
(2) Definitions.--In this subsection:
(A) Covered livestock.--
(i) In general.--Except as provided in clause (ii), the
term ``covered livestock'' means livestock of an eligible
livestock producer that, during the 60 days prior to the
beginning date of an eligible forage loss, as determined by
the Secretary, the eligible livestock producer--
(I) owned;
(II) leased;
(III) purchased;
(IV) entered into a contract to purchase;
(V) was a contract grower; or
(VI) sold or otherwise disposed of due to an eligible
forage loss during--
(aa) the current production year; or
(bb) subject to paragraph (4)(B)(ii), 1 or both of the 2
production years immediately preceding the current production
year.
(ii) Exclusion.--The term ``covered livestock'' does not
include livestock that were or would have been in a feedlot,
on the beginning date of the eligible forage loss, as a part
of the normal business operation of the eligible livestock
producer, as determined by the Secretary.
(B) Drought monitor.--The term ``drought monitor'' means a
system for classifying drought severity according to a range
of abnormally dry to exceptional drought, as defined by the
Secretary.
(C) Eligible forage loss.--The term ``eligible forage
loss'' means 1 or more forage losses that occur due to
weather-related conditions, including drought, flood,
blizzard, hail, excessive moisture, hurricane, and fire,
occurring during the normal grazing period, as determined by
the Secretary, if the forage--
(i) is grown on land that is native or improved pastureland
with permanent vegetative cover; or
(ii) is a crop planted specifically for the purpose of
providing grazing for covered livestock of an eligible
livestock producer.
(D) Eligible livestock producer.--
(i) In general.--The term ``eligible livestock producer''
means an eligible producer on a farm that--
(I) is an owner, cash or share lessee, or contract grower
of covered livestock that provides the pastureland or grazing
land, including cash-leased pastureland or grazing land, for
the covered livestock;
(II) provides the pastureland or grazing land for covered
livestock, including cash-leased pastureland or grazing land
that is physically located in a county affected by an
eligible forage loss;
(III) certifies the eligible forage loss; and
(IV) meets all other eligibility requirements established
under this subsection.
(ii) Exclusion.--The term ``eligible livestock producer''
does not include an owner, cash or share lessee, or contract
grower of livestock that rents or leases pastureland or
grazing land owned by another person on a rate-of-gain basis.
(E) Normal carrying capacity.--The term ``normal carrying
capacity'', with respect to each type of grazing land or
pastureland in a county, means the normal carrying capacity,
as determined under paragraph (4)(D)(i), that would be
expected from the grazing land or pastureland for livestock
during the normal grazing period, in the absence of an
eligible forage loss that diminishes the production of the
grazing land or pastureland.
(F) Normal grazing period.--The term ``normal grazing
period'', with respect to a county, means the normal grazing
period during the calendar year for the county, as determined
under paragraph (4)(D)(i).
(3) Program.--For each of fiscal years 2012 through 2017,
the Secretary shall use such sums as are necessary of the
funds of the Commodity Credit Corporation to provide
compensation under paragraphs (4) through (6), as determined
by the Secretary for eligible forage losses affecting covered
livestock of eligible livestock producers.
(4) Assistance for eligible forage losses due to drought
conditions.--
(A) Eligible forage losses.--
(i) In general.--An eligible livestock producer of covered
livestock may receive assistance under this paragraph for
eligible forage losses that occur due to drought on land
that--
(I) is native or improved pastureland with permanent
vegetative cover; or
(II) is planted to a crop planted specifically for the
purpose of providing grazing for covered livestock.
(ii) Exclusions.--An eligible livestock producer may not
receive assistance under this paragraph for eligible forage
losses that occur on land used for haying or grazing under
the conservation reserve program established under subchapter
B of chapter 1 of subtitle D of title XII of the Food
Security Act of 1985 (16 U.S.C. 3831 et seq.), unless the
land is grassland eligible for the conservation reserve
program under section 1231(d)(2) of the Food Security Act of
1985 (16 U.S.C. 3831(d)(2)) (as amended by section 2001 of
this Act).
(B) Monthly payment rate.--
(i) In general.--Except as provided in clause (ii), the
payment rate for assistance for 1 month under this paragraph
shall, in the case of drought, be equal to 60 percent of the
lesser of--
(I) the monthly feed cost for all covered livestock owned
or leased by the eligible livestock producer, as determined
under subparagraph (C); or
(II) the monthly feed cost calculated by using the normal
carrying capacity of the eligible grazing land of the
eligible livestock producer.
(ii) Partial compensation.--In the case of an eligible
livestock producer that sold or otherwise disposed of covered
livestock due to drought conditions in 1 or both of the 2
production years immediately preceding the current production
year, as determined by the Secretary, the payment rate shall
be 80 percent of the payment rate otherwise calculated in
accordance with clause (i).
(C) Monthly feed cost.--
(i) In general.--The monthly feed cost shall equal the
product obtained by multiplying--
(I) 30 days;
(II) a payment quantity that is equal to the feed grain
equivalent, as determined under clause (ii); and
(III) a payment rate that is equal to the corn price per
pound, as determined under clause (iii).
(ii) Feed grain equivalent.--For purposes of clause
(i)(II), the feed grain equivalent shall equal--
(I) in the case of an adult beef cow, 15.7 pounds of corn
per day; or
(II) in the case of any other type of weight of livestock,
an amount determined by the Secretary that represents the
average number of pounds of corn per day necessary to feed
the livestock.
(iii) Corn price per pound.--For purposes of clause
(i)(III), the corn price per pound shall equal the quotient
obtained by dividing--
(I) the higher of--
(aa) the national average corn price per bushel for the 12-
month period immediately preceding March 1 of the year for
which the disaster assistance is calculated; or
(bb) the national average corn price per bushel for the 24-
month period immediately preceding that March 1; by
(II) 56.
(D) Normal grazing period and drought monitor intensity.--
(i) FSA county committee determinations.--
(I) In general.--The Secretary shall determine the normal
carrying capacity and normal grazing period for each type of
grazing land or pastureland in the county served by the
applicable Farm Service Agency committee.
(II) Changes.--No change to the normal carrying capacity or
normal grazing period established for a county under
subclause (I) shall be made unless the change is requested by
the appropriate State and county Farm Service Agency
committees.
(ii) Drought intensity.--
(I) D2.--An eligible livestock producer that owns or leases
grazing land or pastureland that is physically located in a
county that is rated by the U.S. Drought Monitor as having a
D2 (severe drought) intensity in any area of the county for
at least 8 consecutive weeks during the normal grazing period
for the county, as determined by the Secretary, shall be
eligible to receive assistance under this paragraph in an
amount equal to 1 monthly payment using the monthly payment
rate determined under subparagraph (B).
(II) D3.--An eligible livestock producer that owns or
leases grazing land or pastureland that is physically located
in a county that is rated by the U.S. Drought Monitor as
having at least a D3 (extreme drought) intensity in any area
of the county at any time during the normal grazing period
for the county, as determined by the Secretary, shall be
eligible to receive assistance under this paragraph--
(aa) in an amount equal to 3 monthly payments using the
monthly payment rate determined under subparagraph (B);
(bb) if the county is rated as having a D3 (extreme
drought) intensity in any area of the county for at least 4
weeks during the normal grazing period for the county, or is
rated as having a D4 (exceptional drought) intensity in any
area of the county at any time during the normal grazing
period, in an amount equal to 4 monthly payments using the
monthly payment rate determined under subparagraph (B); or
(cc) if the county is rated as having a D4 (exceptional
drought) intensity in any area of the county for at least 4
weeks during the normal grazing period, in an amount equal to
5 monthly payments using the monthly rate determined under
subparagraph (B).
(5) Assistance for losses due to fire on public managed
land.--
(A) In general.--An eligible livestock producer may receive
assistance under this paragraph only if--
(i) the eligible forage losses occur on rangeland that is
managed by a Federal agency; and
(ii) the eligible livestock producer is prohibited by the
Federal agency from grazing the normal permitted livestock on
the managed rangeland due to a fire.
(B) Payment rate.--The payment rate for assistance under
this paragraph shall be equal to 50 percent of the monthly
feed cost for the total number of livestock covered by
[[Page S4013]]
the Federal lease of the eligible livestock producer, as
determined under paragraph (4)(C).
(C) Payment duration.--
(i) In general.--Subject to clause (ii), an eligible
livestock producer shall be eligible to receive assistance
under this paragraph for the period--
(I) beginning on the date on which the Federal agency
excludes the eligible livestock producer from using the
managed rangeland for grazing; and
(II) ending on the last day of the Federal lease of the
eligible livestock producer.
(ii) Limitation.--An eligible livestock producer may only
receive assistance under this paragraph for losses that occur
on not more than 180 days per year.
(6) Assistance for eligible forage losses due to other than
drought or fire.--
(A) Eligible forage losses.--
(i) In general.--Subject to subparagraph (B), an eligible
livestock producer of covered livestock may receive
assistance under this paragraph for eligible forage losses
that occur due to weather-related conditions other than
drought or fire on land that--
(I) is native or improved pastureland with permanent
vegetative cover; or
(II) is planted to a crop planted specifically for the
purpose of providing grazing for covered livestock.
(ii) Exclusions.--An eligible livestock producer may not
receive assistance under this paragraph for eligible forage
losses that occur on land used for haying or grazing under
the conservation reserve program established under subchapter
B of chapter 1 of subtitle D of title XII of the Food
Security Act of 1985 (16 U.S.C. 3831 et seq.), unless the
land is grassland eligible for the conservation reserve
program under section 1231(d)(2) of the Food Security Act of
1985 (16 U.S.C. 3831(d)(2)) (as amended by section 2001 of
this Act).
(B) Payments for eligible forage losses.--
(i) In general.--The Secretary shall provide assistance
under this paragraph to an eligible livestock producer for
eligible forage losses that occur due to weather-related
conditions other than--
(I) drought under paragraph (4); and
(II) fire on public managed land under paragraph (5).
(ii) Terms and conditions.--The Secretary shall establish
terms and conditions for assistance under this paragraph that
are consistent with the terms and conditions for assistance
under this subsection.
(7) No duplicative payments.--An eligible livestock
producer may elect to receive assistance for eligible forage
losses under either paragraph (4), (5), or (6), if
applicable, but may not receive assistance under more than 1
of those paragraphs for the same loss, as determined by the
Secretary.
(8) Determinations by secretary.--A determination made by
the Secretary under this subsection shall be final and
conclusive.
(d) Emergency Assistance for Livestock, Honey Bees, and
Farm-raised Fish.--
(1) In general.--For each of fiscal years 2012 through
2017, the Secretary shall use not more than $5,000,000 of the
funds of the Commodity Credit Corporation to provide
emergency relief to eligible producers of livestock, honey
bees, and farm-raised fish to aid in the reduction of losses
due to disease, adverse weather, or other conditions, such as
blizzards and wildfires, as determined by the Secretary, that
are not covered under subsection (b) or (c).
(2) Use of funds.--Funds made available under this
subsection shall be used to reduce losses caused by feed or
water shortages, disease, or other factors as determined by
the Secretary.
(3) Availability of funds.--Any funds made available under
this subsection shall remain available until expended.
(e) Tree Assistance Program.--
(1) Definitions.--In this subsection:
(A) Eligible orchardist.--The term ``eligible orchardist''
means a person that produces annual crops from trees for
commercial purposes.
(B) Natural disaster.--The term ``natural disaster'' means
plant disease, insect infestation, drought, fire, freeze,
flood, earthquake, lightning, or other occurrence, as
determined by the Secretary.
(C) Nursery tree grower.--The term ``nursery tree grower''
means a person who produces nursery, ornamental, fruit, nut,
or Christmas trees for commercial sale, as determined by the
Secretary.
(D) Tree.--The term ``tree'' includes a tree, bush, and
vine.
(2) Eligibility.--
(A) Loss.--Subject to subparagraph (B), for each of fiscal
years 2012 through 2017, the Secretary shall use such sums as
are necessary of the funds of the Commodity Credit
Corporation to provide assistance--
(i) under paragraph (3) to eligible orchardists and nursery
tree growers that planted trees for commercial purposes but
lost the trees as a result of a natural disaster, as
determined by the Secretary; and
(ii) under paragraph (3)(B) to eligible orchardists and
nursery tree growers that have a production history for
commercial purposes on planted or existing trees but lost the
trees as a result of a natural disaster, as determined by the
Secretary.
(B) Limitation.--An eligible orchardist or nursery tree
grower shall qualify for assistance under subparagraph (A)
only if the tree mortality of the eligible orchardist or
nursery tree grower, as a result of damaging weather or
related condition, exceeds 15 percent (adjusted for normal
mortality).
(3) Assistance.--Subject to paragraph (4), the assistance
provided by the Secretary to eligible orchardists and nursery
tree growers for losses described in paragraph (2) shall
consist of--
(A)(i) reimbursement of 65 percent of the cost of
replanting trees lost due to a natural disaster, as
determined by the Secretary, in excess of 15 percent
mortality (adjusted for normal mortality); or
(ii) at the option of the Secretary, sufficient seedlings
to reestablish a stand; and
(B) reimbursement of 50 percent of the cost of pruning,
removal, and other costs incurred by an eligible orchardist
or nursery tree grower to salvage existing trees or, in the
case of tree mortality, to prepare the land to replant trees
as a result of damage or tree mortality due to a natural
disaster, as determined by the Secretary, in excess of 15
percent damage or mortality (adjusted for normal tree damage
and mortality).
(4) Limitations on assistance.--
(A) Definitions of legal entity and person.--In this
paragraph, the terms ``legal entity'' and ``person'' have the
meaning given those terms in section 1001(a) of the Food
Security Act of 1985 (7 U.S.C. 1308(a)).
(B) Amount.--The total amount of payments received,
directly or indirectly, by a person or legal entity
(excluding a joint venture or general partnership) under this
subsection may not exceed $100,000 for any crop year, or an
equivalent value in tree seedlings.
(C) Acres.--The total quantity of acres planted to trees or
tree seedlings for which a person or legal entity shall be
entitled to receive payments under this subsection may not
exceed 500 acres.
(f) Payments.--
(1) Payment limitations.--
(A) Definitions of legal entity and person.--In this
subsection, the terms ``legal entity'' and ``person'' have
the meanings given those terms in section 1001(a) of the Food
Security Act of 1985 (7 U.S.C. 1308(a)).
(B) Amount.--The total amount of disaster assistance
payments received, directly or indirectly, by a person or
legal entity (excluding a joint venture or general
partnership) under this section (excluding payments received
under subsection (e)) may not exceed $100,000 for any crop
year.
(C) Direct attribution.--Subsections (d) and (e) of section
1001 of the Food Security Act of 1985 (7 U.S.C. 1308) or any
successor provisions relating to direct attribution shall
apply with respect to assistance provided under this section.
(2) Payment delivery.--The Secretary shall make payments
under this section after October 1, 2013, for losses incurred
in the 2012 and 2013 fiscal years, and as soon as practicable
for losses incurred in any year thereafter.
Subtitle F--Administration
SEC. 1601. ADMINISTRATION GENERALLY.
(a) Use of Commodity Credit Corporation.--The Secretary
shall use the funds, facilities, and authorities of the
Commodity Credit Corporation to carry out this title.
(b) Determinations by Secretary.--A determination made by
the Secretary under this title shall be final and conclusive.
(c) Regulations.--
(1) In general.--Except as otherwise provided in this
subsection, not later than 90 days after the date of
enactment of this Act, the Secretary and the Commodity Credit
Corporation, as appropriate, shall promulgate such
regulations as are necessary to implement this title and the
amendments made by this title.
(2) Procedure.--The promulgation of the regulations and
administration of this title and the amendments made by this
title and sections 11001 and 11011 of this Act shall be made
without regard to--
(A) the notice and comment provisions of section 553 of
title 5, United States Code;
(B) chapter 35 of title 44, United States Code (commonly
known as the ``Paperwork Reduction Act''); and
(C) the Statement of Policy of the Secretary of Agriculture
effective July 24, 1971 (36 Fed. Reg. 13804), relating to
notices of proposed rulemaking and public participation in
rulemaking.
(3) Congressional review of agency rulemaking.--In carrying
out this subsection, the Secretary shall use the authority
provided under section 808 of title 5, United States Code.
(d) Adjustment Authority Related to Trade Agreements
Compliance.--
(1) Required determination; adjustment.--If the Secretary
determines that expenditures under this title that are
subject to the total allowable domestic support levels under
the Uruguay Round Agreements (as defined in section 2 of the
Uruguay Round Agreements Act (19 U.S.C. 3501)) will exceed
the allowable levels for any applicable reporting period, the
Secretary shall, to the maximum extent practicable, make
adjustments in the amount of the expenditures during that
period to ensure that the expenditures do not exceed the
allowable levels.
(2) Congressional notification.--Before making any
adjustment under paragraph (1), the Secretary shall submit to
the Committee on Agriculture of the House of Representatives
and the Committee on Agriculture, Nutrition, and Forestry of
the Senate a report describing the determination made under
that paragraph and the extent of the adjustment to be made.
[[Page S4014]]
SEC. 1602. SUSPENSION OF PERMANENT PRICE SUPPORT AUTHORITY.
(a) Agricultural Adjustment Act of 1938.--The following
provisions of the Agricultural Adjustment Act of 1938 shall
not be applicable to the 2013 through 2017 crops of covered
commodities (as defined in section 1104), cotton, and sugar
and shall not be applicable to milk during the period
beginning on the date of enactment of this Act through
December 31, 2017:
(1) Parts II through V of subtitle B of title III (7 U.S.C.
1326 et seq.).
(2) In the case of upland cotton, section 377 (7 U.S.C.
1377).
(3) Subtitle D of title III (7 U.S.C. 1379a et seq.).
(4) Title IV (7 U.S.C. 1401 et seq.).
(b) Agricultural Act of 1949.--The following provisions of
the Agricultural Act of 1949 shall not be applicable to the
2013 through 2017 crops of covered commodities (as defined in
section 1104), cotton, and sugar and shall not be applicable
to milk during the period beginning on the date of enactment
of this Act and through December 31, 2017:
(1) Section 101 (7 U.S.C. 1441).
(2) Section 103(a) (7 U.S.C. 1444(a)).
(3) Section 105 (7 U.S.C. 1444b).
(4) Section 107 (7 U.S.C. 1445a).
(5) Section 110 (7 U.S.C. 1445e).
(6) Section 112 (7 U.S.C. 1445g).
(7) Section 115 (7 U.S.C. 1445k).
(8) Section 201 (7 U.S.C. 1446).
(9) Title III (7 U.S.C. 1447 et seq.).
(10) Title IV (7 U.S.C. 1421 et seq.), other than sections
404, 412, and 416 (7 U.S.C. 1424, 1429, and 1431).
(11) Title V (7 U.S.C. 1461 et seq.).
(12) Title VI (7 U.S.C. 1471 et seq.).
(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 2013 through 2017.
SEC. 1603. PAYMENT LIMITATIONS.
(a) In General.--Section 1001 of the Food Security Act of
1985 (7 U.S.C. 1308) is amended by striking subsections (b)
and (c) and inserting the following:
``(b) Limitation on Payments for Peanuts and Other Covered
Commodities.--The total amount of payments received, directly
or indirectly, by a person or legal entity (except a joint
venture or general partnership) for any crop year under title
I of subtitle A of the Agriculture Reform, Food, and Jobs Act
of 2012 for--
``(1) peanuts may not exceed $50,000; and
``(2) 1 or more other covered commodities may not exceed
$50,000.''.
(b) Conforming Amendments.--
(1) Section 1001 of the Food Security Act of 1985 (7 U.S.C.
1308) is amended--
(A) in subsection (a)(1), by striking ``section 1001 of the
Food, Conservation, and Energy Act of 2008'' and inserting
``section 1104 of the Agriculture Reform, Food, and Jobs Act
of 2012'';
(B) in subsection (d), by inserting ``or title I of the
Agriculture Reform, Food, and Jobs Act of 2012'' before the
period at the end;
(C) in subsection (e)--
(i) in paragraph (1), by striking ``subsections (b) and (c)
and a program described in paragraphs (1)(C)'' and inserting
``subsection (b) and a program described in paragraph
(1)(B)''; and
(ii) in paragraph (3)(B), by striking ``subsections (b) and
(c)'' each place it appears and inserting ``subsection (b)'';
(D) in subsection (f)--
(i) by striking ``or title XII'' each place it appears in
paragraphs (5)(A) and (6)(A) and inserting ``, title I of the
Agriculture Reform, Food, and Jobs Act of 2012, or title
XII'';
(ii) in paragraph (2), by striking ``Subsections (b) and
(c)'' and inserting ``Subsection (b)'';
(iii) in paragraph (4)(B), by striking ``subsection (b) or
(c)'' and inserting ``subsection (b)'';
(iv) in paragraph (5)--
(I) in subparagraph (A), by striking ``subsection (d)'' and
inserting ``subsection (c)''; and
(II) in subparagraph (B), by striking ``subsection (b),
(c), or (d)'' and inserting ``subsection (b) or (c)''; and
(v) in paragraph (6)--
(I) in subparagraph (A), by striking ``subsection (d),
except as provided in subsection (g)'' and inserting
``subsection (c), except as provided in subsection (f)''; and
(II) in subparagraph (B), by striking ``subsections (b),
(c), and (d)'' and inserting ``subsections (b) and (c)'';
(E) in subsection (g)--
(i) in paragraph (1)--
(I) bv striking ``subsection (f)(6)(A)'' and inserting
``subsection (e)(6)(A)'' and
(II) by striking ``subsection (b) or (c)'' and inserting
``subsection (b)''; and
(ii) in paragraph (2)(A), by striking ``subsections (b) and
(c)'' and inserting ``subsection (b)''; and
(F) by redesignating subsections (d) through (h) as
subsections (c) through (g), respectively.
(2) Section 1001A of the Food Security Act of 1985 (7
U.S.C. 1308 1) is amended--
(A) in subsection (a), by striking ``subsections (b) and
(c)'' and inserting ``subsection (b)''; and
(B) in subsection (b)(1), by striking ``subsection (b) or
(c)'' and inserting ``subsection (b)''.
(3) Section 1001B(a) of the Food Security Act of 1985 (7
U.S.C. 1308 2(a)) is amended in the matter preceding
paragraph (1) by striking ``subsections (b) and (c)'' and
inserting ``subsection (b)''.
(4) Section 1001C(a) of the Food Security Act of 1985 (7
U.S.C. 1308 3(a)) is amended by inserting ``title I of the
Agriculture Reform, Food, and Jobs Act of 2012,'' after
``2008,''.
(c) Application.--The amendments made by this section shall
apply beginning with the 2013 crop year.
SEC. 1604. PAYMENTS LIMITED TO ACTIVE FARMERS.
Section 1001A of the Food Security Act of 1985 (7 U.S.C.
1308 1) is amended--
(1) in subsection (b)(2)--
(A) by striking ``or active personal management'' each
place it appears in subparagraphs (A)(i)(II) and (B)(ii); and
(B) in subparagraph (C), by striking ``, as applied to the
legal entity, are met by the legal entity, the partners or
members making a significant contribution of personal labor
or active personal management'' and inserting ``are met by
partners or members making a significant contribution of
personal labor, those partners or members''; and
(2) in subsection (c)--
(A) in paragraph (1)--
(i) by striking subparagraph (A) and inserting the
following:
``(A) the landowner share-rents the land at a rate that is
usual and customary;'';
(ii) in subparagraph (B), by striking the period at the end
and inserting ``; and''; and
(iii) by adding at the end the following:
``(C) the share of the payments received by the landowner
is commensurate with the share of the crop or income received
as rent.'';
(B) in paragraph (2)(A), by striking ``active personal
management or'';
(C) in paragraph (5)--
(i) by striking ``(5)'' and all that follows through ``(A)
In general.--A person'' and inserting the following:
``(5) Custom farming services.--A person'';
(ii) by inserting ``under usual and customary terms'' after
``services''; and
(iii) by striking subparagraph (B); and
(D) by adding at the end the following:
``(7) Farm managers.--A person who otherwise meets the
requirements of this subsection other than (b)(2)(A)(i)(II)
shall be considered to be actively engaged in farming, as
determined by the Secretary, with respect to the farming
operation, including a farming operation that is a sole
proprietorship, a legal entity such as a joint venture or
general partnership, or a legal entity such as a corporation
or limited partnership, if the person--
``(A) makes a significant contribution of management to the
farming operation necessary for the farming operation, taking
into account--
``(i) the size and complexity of the farming operation; and
``(ii) the management requirements normally and customarily
required by similar farming operations;
``(B) is the only person in the farming operation
qualifying as actively engaged in farming;
``(C) does not use the management contribution under this
paragraph to qualify as actively engaged in more than 1
farming operation; and
``(D) manages a farm operation that does not substantially
share equipment, labor, or management with persons or legal
entities that with the person collectively receive, directly
or indirectly, an amount equal to more than the applicable
limits under section 1001(b).''.
SEC. 1605. ADJUSTED GROSS INCOME LIMITATION.
(a) In General.--Section 1001D(b)) of the Food Security Act
of 1985 (7 U.S.C. 1308 3a(b)) is amended by striking
paragraph (1) and inserting the following:
``(1) Commodity programs.--
``(A) Limitation.--Notwithstanding any other provision of
law, a person or legal entity shall not be eligible to
receive any benefit described in subparagraph (B) during a
crop, fiscal or program year, as appropriate, if the average
adjusted gross income (or comparable measure over the 3
taxable years preceding the most immediately preceding
complete taxable year, as determined by the Secretary) of the
person or legal entity exceeds $750,000.
``(B) Covered benefits.--Subparagraph (A) applies with
respect to the following:
``(i) A payment under section 1105 of the Agriculture
Reform, Food, and Jobs Act of 2012.
``(ii) A marketing loan gain or loan deficiency payment
under subtitle B of title I of the Agriculture Reform, Food,
and Jobs Act of 2012.
``(iii) A payment under subtitle E of the Agriculture
Reform, Food, and Jobs Act of 2012.''.
``(iv) A payment under section 196 of the Federal
Agriculture Improvement and Reform Act of 1996 (7 U.S.C.
7333).''.
(b) Application.--The amendments made by this section shall
apply beginning with the 2013 crop year.
SEC. 1606. GEOGRAPHICALLY DISADVANTAGED FARMERS AND RANCHERS.
Section 1621(d) of the Food, Conservation, and Energy Act
of 2008 (7 U.S.C. 8792(d)) is amended by striking ``2012''
and inserting ``2017''.
[[Page S4015]]
SEC. 1607. PERSONAL LIABILITY OF PRODUCERS FOR DEFICIENCIES.
Section 164 of the Federal Agriculture Improvement and
Reform Act of 1996 (7 U.S.C. 7284) is amended by striking
``and title I of the Food, Conservation, and Energy Act of
2008'' each place it appears and inserting ``title I of the
Food, Conservation, and Energy Act of 2008 (7 U.S.C. 8702 et
seq.), and title I of the Agriculture Reform, Food, and Jobs
Act of 2012''.
SEC. 1608. PREVENTION OF DECEASED INDIVIDUALS RECEIVING
PAYMENTS UNDER FARM COMMODITY PROGRAMS.
(a) Reconciliation.--At least twice each year, the
Secretary shall reconcile social security numbers of all
individuals who receive payments under this title, whether
directly or indirectly, with the Commissioner of Social
Security to determine if the individuals are alive.
(b) Preclusion.--The Secretary shall preclude the issuance
of payments to, and on behalf of, deceased individuals that
were not eligible for payments.
SEC. 1609. APPEALS.
(a) Direction, Control, and Support.--Section 272 of the
Department of Agriculture Reorganization Act of 1994 (7
U.S.C. 6992) is amended by striking subsection (c) and
inserting the following:
``(c) Direction, Control, and Support.--
``(1) Direction and control.--
``(A) In general.--Except as provided in paragraph (2), the
Director shall be free from the direction and control of any
person other than the Secretary or the Deputy Secretary of
Agriculture.
``(B) Administrative support.--The Division shall not
receive administrative support (except on a reimbursable
basis) from any agency other than the Office of the
Secretary.
``(C) Prohibition on delegation.--The Secretary may not
delegate to any other officer or employee of the Department,
other than the Deputy Secretary of Agriculture or the
Director, the authority of the Secretary with respect to the
Division.
``(2) Exception.--The Assistant Secretary for
Administration is authorized to investigate, enforce, and
implement the provisions in law, Executive order, or
regulations that relate in general to competitive and
excepted service positions and employment within the
Division, including the position of Director, and such
authority may be further delegated to subordinate
officials.''.
(b) Determination of Appealability of Agency Decisions.--
Section 272 of the Department of Agriculture Reorganization
Act of 1994 (7 U.S.C. 6992) is amended by striking subsection
(d) and inserting the following:
``(d) Determination of Appealability of Agency Decisions.--
``(1) Definition of a matter of general applicability.--In
this subsection, the term `a matter of general applicability'
means a matter that challenges the merits or authority of a
rule, procedure, local or national program practice, or
determination of an agency that applies, or can apply, to
more than 1 interested party as opposed to the particular
application of the rule, procedure, or practice to a specific
set of facts or the facts themselves as the facts apply to 1
particular interested party.
``(2) Matters not subject to appeal.--The Division may not
hear appeals--
``(A) unless the determination of the agency is adverse to
the appellant;
``(B) that involve matters of general applicability; and
``(C) that involve requests for equitable relief unless the
equitable relief has been denied by the agency.
``(3) Equitable relief.--
``(A) In general.--An appeal requesting equitable relief
may not be granted by the Director to an appellant unless,
using the rules and practices that the agency applies to
itself, the agency could in fact have granted the relief
because the appellant acted in good faith, but failed to
fully comply with the requirement of the rule or practice of
the agency.
``(B) Remand.--If it cannot be determined whether the
agency would have granted equitable relief because the
appellant acted in good faith, but failed to comply with the
rule or practice of the agency, the matter shall be remanded
to the agency for further consideration.
``(4) Determination of appealability.--If an officer,
employee, or committee of an agency determines that a
decision is not appealable and a participant appeals the
decision to the Director, the Director shall determine
whether the decision is adverse to the individual participant
and appealable or is a matter of general applicability and
not subject to appeal.
``(5) Appealability of determination.--The determination of
the Director as to whether a decision is appealable is
final.''.
(c) Equitable Relief.--Section 278 of the Department of
Agriculture Reorganization Act of 1994 (7 U.S.C. 6998) is
amended by striking subsection (d).
(d) Conforming Amendment.--Section 296(b) of the Department
of Agriculture Reorganization Act of 1994 (7 U.S.C. 7014(b))
is amended--
(1) in paragraph (6)(C), by striking ``or'' at the end;
(2) in paragraph (7), by striking the period at the end and
inserting ``; or''; and
(3) by adding at the end the following:
``(8) the authority of the Secretary to carry out
amendments to sections 272 and 278 made by the Agriculture
Reform, Food, and Jobs Act of 2012.''.
SEC. 1610. TECHNICAL CORRECTIONS.
(a) Section 359f(c)(1)(B) of the Agricultural Adjustment
Act of 1938 (7 U.S.C. 1359ff(c)(1)(B)) is amended by adding a
period at the end.
(b)(1) Section 1603(g) of the Food, Conservation, and
Energy Act of 2008 (Public Law 110 246; 122 Stat. 1739) is
amended in paragraphs (2) through (6) and the amendments made
by those paragraphs by striking ``1703(a)'' each place it
appears and inserting ``1603(a)''.
(2) This subsection and the amendments made by this
subsection take effect as if included in the Food,
Conservation, and Energy Act of 2008 (Public Law 110 246; 122
Stat. 1651).
SEC. 1611. ASSIGNMENT OF PAYMENTS.
(a) In General.--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 payments
made under this title.
(b) Notice.--The producer making the assignment, or the
assignee, shall provide the Secretary with notice, in such
manner as the Secretary may require, of any assignment made
under this section.
SEC. 1612. TRACKING OF BENEFITS.
As soon as practicable after the date of enactment of this
Act, the Secretary may track the benefits provided, directly
or indirectly, to individuals and entities under titles I and
II and the amendments made by those titles.
SEC. 1613. SIGNATURE AUTHORITY.
(a) In General.--In carrying out this title and title II
and amendments made by those titles, if the Secretary
approves a document, the Secretary shall not subsequently
determine the document is inadequate or invalid because of
the lack of authority of any person signing the document on
behalf of the applicant or any other individual, entity,
general partnership, or joint venture, or the documents
relied upon were determined inadequate or invalid, unless the
person signing the program document knowingly and willfully
falsified the evidence of signature authority or a signature.
(b) Affirmation.--
(1) In general.--Nothing in this section prohibits the
Secretary from asking a proper party to affirm any document
that otherwise would be considered approved under subsection
(a).
(2) No retroactive effect.--A denial of benefits based on a
lack of affirmation under paragraph (1) shall not be
retroactive with respect to third-party producers who were
not the subject of the erroneous representation of authority,
if the third-party producers--
(A) relied on the prior approval by the Secretary of the
documents in good faith; and
(B) substantively complied with all program requirements.
SEC. 1614. IMPLEMENTATION.
(a) Streamlining.--In implementing this title, the
Secretary shall, to the maximum extent practicable--
(1) seek to reduce administrative burdens and costs to
producers by streamlining and reducing paperwork, forms, and
other administrative requirements;
(2) improve coordination, information sharing, and
administrative work with the Risk Management Agency and the
Natural Resources Conservation Service; and
(3) take advantage of new technologies to enhance
efficiency and effectiveness of program delivery to
producers.
(b) Implementation.--On October 1, 2013, the Secretary
shall make available to the Farm Service Agency to carry out
this title $100,000,000.
TITLE II--CONSERVATION
Subtitle A--Conservation Reserve Program
SEC. 2001. EXTENSION AND ENROLLMENT REQUIREMENTS OF
CONSERVATION RESERVE PROGRAM.
(a) Extension.--Section 1231(a) of the Food Security Act of
1985 (16 U.S.C. 3831(a)) is amended by striking ``2012'' and
inserting ``2017''.
(b) Eligible Land.--Section 1231(b) of the Food Security
Act of 1985 (16 U.S.C. 3831(b)) is amended--
(1) in paragraph (1)(B), by striking ``the date of
enactment of the Food, Conservation, and Energy Act of 2008''
and inserting ``the date of enactment of the Agriculture
Reform, Food, and Jobs Act of 2012'';
(2) by striking paragraph (2) and redesignating paragraph
(3) as paragraph (2);
(3) by inserting before paragraph (4) the following:
``(3) grassland that--
``(A) contains forbs or shrubland (including improved
rangeland and pastureland) for which grazing is the
predominant use;
``(B) is located in an area historically dominated by
grassland; and
``(C) could provide habitat for animal and plant
populations of significant ecological value if the land is
retained in its current use or restored to a natural
condition;'';
(4) in paragraph (4)(C), by striking ``filterstrips devoted
to trees or shrubs'' and inserting ``filterstrips and
riparian buffers devoted to trees, shrubs, or grasses''; and
(5) by striking paragraph (5) and inserting the following:
``(5) the portion of land in a field not enrolled in the
conservation reserve in a case in which--
``(A) more than 50 percent of the land in the field is
enrolled as a buffer or filterstrip or more than 75 percent
of the land in the field is enrolled in a practice other than
as a buffer or filterstrip; and
``(B) the remainder of the field is--
[[Page S4016]]
``(i) infeasible to farm; and
``(ii) enrolled at regular rental rates.''.
(c) Planting Status of Certain Land.--Section 1231(c) of
the Food Security Act of 1985 (16 U.S.C. 3831(c)) is amended
by striking ``if'' and all that follows through the period at
the end and inserting ``if, during the crop year, the land
was devoted to a conserving use.''.
(d) Enrollment.--Section 1231 of the Food Security Act of
1985 (16 U.S.C. 3831) is amended by striking subsection (d)
and inserting the following:
``(d) Enrollment.--
``(1) Maximum acreage enrolled.--The Secretary may maintain
in the conservation reserve at any 1 time during--
``(A) fiscal year 2012, no more than 32,000,000 acres;
``(B) fiscal year 2013, no more than 30,000,000 acres;
``(C) fiscal year 2014, no more than 27,500,000 acres;
``(D) fiscal year 2015, no more than 26,500,000 acres;
``(E) fiscal year 2016, no more than 25,500,000 acres; and
``(F) fiscal year 2017, no more than 25,000,000 acres.
``(2) Grassland.--
``(A) Limitation.--For purposes of applying the limitations
in paragraph (1), no more than 1,500,000 acres of the land
described in subsection (b)(3) may be enrolled in the program
at any 1 time during the 2013 through 2017 fiscal years.
``(B) Priority.--In enrolling acres under subparagraph (A),
the Secretary may give priority to land with expiring
conservation reserve program contracts.
``(C) Method of enrollment.--In enrolling acres under
subparagraph (A), the Secretary shall make the program
available to owners or operators of eligible land at least
once during each fiscal year.''.
(e) Duration of Contract.--Section 1231(e) of the Food
Security Act of 1985 (16 U.S.C. 3831(e)) is amended by
striking paragraphs (2) and (3) and inserting the following:
``(2) Special rule for certain land.--In the case of land
devoted to hardwood trees, shelterbelts, windbreaks, or
wildlife corridors under a contract entered into under this
subchapter, the owner or operator of the land may, within the
limitations prescribed under this section, specify the
duration of the contract.''.
(f) Conservation Priority Areas.--Section 1231(f) of the
Food Security Act of 1985 (16 U.S.C. 3831(f)) is amended--
(1) in paragraph (1), by striking ``watershed areas of the
Chesapeake Bay Region, the Great Lakes Region, the Long
Island Sound Region, and other'';
(2) in paragraph (2), by striking ``watersheds.--
Watersheds'' and inserting ``areas.--Areas''; and
(3) in paragraph (3), by striking ``a watershed's
designation--'' and all that follows through the period at
the end and inserting ``an area's designation if the
Secretary finds that the area no longer contains actual and
significant adverse water quality or habitat impacts related
to agricultural production activities.''.
SEC. 2002. FARMABLE WETLAND PROGRAM.
(a) Extension.--Section 1231B(a)(1) of the Food Security
Act of 1985 (16 U.S.C. 3831b(a)(1)) is amended--
(1) by striking ``2012'' and inserting ``2017''; and
(2) by striking ``a program'' and inserting ``a farmable
wetland program''.
(b) Eligible Acreage.--Section 1231B(b)(1)(B) of the Food
Security Act of 1985 (16 U.S.C. 3831b(b)(1)(B)) is amended by
striking ``flow from a row crop agriculture drainage system''
and inserting ``surface and subsurface flow from row crop
agricultural production''.
(c) Clerical Amendments.--Section 1231B of the Food
Security Act of 1985 (16 U.S.C. 3831b) is amended--
(1) by striking the heading and inserting the following:
``SEC. 1231B. FARMABLE WETLAND PROGRAM.'';
and
(2) in subsection (f)(2), by striking ``section
1234(c)(2)(B)'' and inserting ``section 1234(c)(2)(A)(ii)''.
SEC. 2003. DUTIES OF OWNERS AND OPERATORS.
(a) Limitation on Harvesting, Grazing or Commercial Use of
Forage.--Section 1232(a)(8) of the Food Security Act of 1985
(16 U.S.C. 3832(a)(8)) is amended by striking ``except that''
and all that follows through the semicolon at the end of the
paragraph and inserting ``except as provided in section
1233(b);''.
(b) Conservation Plan Requirements.--Section 1232 of the
Food Security Act of 1985 (16 U.S.C. 3832) is amended by
striking subsection (b) and inserting the following:
``(b) Conservation Plans.--The plan referred to in
subsection (a)(1) shall set forth--
``(1) the conservation measures and practices to be carried
out by the owner or operator during the term of the contract;
and
``(2) the commercial use, if any, to be permitted on the
land during the term.''.
(c) Rental Payment Reduction.--Section 1232 of the Food
Security Act of 1985 (16 U.S.C. 3832) is amended by striking
subsection (d).
SEC. 2004. DUTIES OF THE SECRETARY.
Section 1233 of the Food Security Act of 1985 (16 U.S.C.
3833) is amended to read as follows:
``SEC. 1233. DUTIES OF THE SECRETARY.
``(a) Cost-share and Rental Payments.--In return for a
contract entered into by an owner or operator, the Secretary
shall--
``(1) share the cost of carrying out the conservation
measures and practices set forth in the contract for which
the Secretary determines that cost sharing is appropriate and
in the public interest; and
``(2) for a period of years not in excess of the term of
the contract, pay an annual rental payment in an amount
necessary to compensate for--
``(A) the conversion of highly erodible cropland or other
eligible land normally devoted to the production of an
agricultural commodity on a farm or ranch to a less intensive
use;
``(B) the retirement of any cropland base and allotment
history that the owner or operator agrees to retire
permanently; and
``(C) the development and management of grassland for
multiple natural resource conservation benefits, including
soil, water, air, and wildlife.
``(b) Specified Activities Permitted.--The Secretary shall
permit certain activities or commercial uses of land that is
subject to the contract if those activities or uses are
consistent with a plan approved by the Secretary and
include--
``(1) harvesting, grazing, or other commercial use of the
forage in response to drought, flooding, or other emergency
without any reduction in the rental rate;
``(2) grazing by livestock of a beginning farmer or rancher
without any reduction in the rental rate, if the grazing is--
``(A) consistent with the conservation of soil, water
quality, and wildlife habitat (including habitat during the
primary nesting season for critical birds in the area); and
``(B) described in subparagraph (B) or (C) of paragraph
(3);
``(3) consistent with the conservation of soil, water
quality, and wildlife habitat (including habitat during the
primary nesting season for critical birds in the area) and in
exchange for a reduction of not less than 25 percent in the
annual rental rate for the acres covered by the authorized
activity--
``(A) managed harvesting and other commercial use
(including the managed harvesting of biomass), except that in
permitting those activities the Secretary, in coordination
with the State technical committee--
``(i) shall develop appropriate vegetation management
requirements; and
``(ii) shall identify periods during which the activities
may be conducted, such that the frequency is at least once
every 5 years but not more than once every 3 years;
``(B) prescribed grazing for the control of invasive
species, which may be conducted annually;
``(C) routine grazing, except that in permitting routine
grazing, the Secretary, in coordination with the State
technical committee--
``(i) shall develop appropriate vegetation management
requirements and stocking rates for the land that are
suitable for continued routine grazing; and
``(ii) shall identify the periods during which routine
grazing may be conducted, such that the frequency is not more
than once every 2 years, taking into consideration regional
differences such as--
``(I) climate, soil type, and natural resources;
``(II) the number of years that should be required between
routine grazing activities; and
``(III) how often during a year in which routine grazing is
permitted that routine grazing should be allowed to occur;
and
``(D) the installation of wind turbines and associated
access, except that in permitting the installation of wind
turbines, the Secretary shall determine the number and
location of wind turbines that may be installed, taking into
account--
``(i) the location, size, and other physical
characteristics of the land;
``(ii) the extent to which the land contains threatened or
endangered wildlife and wildlife habitat; and
``(iii) the purposes of the conservation reserve program
under this subchapter; and
``(4) the intermittent and seasonal use of vegetative
buffer practices incidental to agricultural production on
land adjacent to the buffer such that the permitted use does
not destroy the permanent vegetative cover.
``(c) Authorized Activities on Grassland.--Notwithstanding
section 1232(a)(8), for eligible land described in section
1231(b)(3), the Secretary shall permit the following
activities:
``(1) Common grazing practices, including maintenance and
necessary cultural practices, on the land in a manner that is
consistent with maintaining the viability of grassland, forb,
and shrub species appropriate to that locality.
``(2) Haying, mowing, or harvesting for seed production,
subject to appropriate restrictions during the primary
nesting season for critical birds in the area.
``(3) Fire presuppression, rehabilitation, and construction
of fire breaks.
``(4) Grazing-related activities, such as fencing and
livestock watering.
``(d) Resource Conserving Use.--
``(1) In general.--Beginning on the date that is 1 year
before the date of termination of a contract under the
program, the Secretary shall allow an owner or operator to
make conservation and land improvements that facilitate
maintaining protection of highly erodible land after
expiration of the contract.
[[Page S4017]]
``(2) Conservation plan.--The Secretary shall require an
owner or operator carrying out the activities described in
paragraph (1) to develop and implement a conservation plan.
``(3) Reenrollment prohibited.--Land altered under
paragraph (1) may not be reenrolled in the conservation
reserve program for 5 years.
``(4) Payment.--The Secretary shall provide an annual
payment that is reduced in an amount commensurate with any
income or other compensation received as a result of the
activities carried out under paragraph (1).''.
SEC. 2005. PAYMENTS.
(a) Trees, Windbreaks, Shelterbelts, and Wildlife
Corridors.--Section 1234(b)(3)(A) of the Food Security Act of
1985 (16 U.S.C. 3834(b)(3)(A)) is amended--
(1) in clause (i), by inserting ``and'' after the
semicolon;
(2) by striking clause (ii); and
(3) by redesignating clause (iii) as clause (ii).
(b) Incentives.--Section 1234(b)(3)(B) of the Food Security
Act of 1985 (16 U.S.C. 3834(b)(3)(B)) is amended--
(1) in clause (i), by inserting ``, practices to improve
the condition of resources on the land,'' after
``operator)''; and
(2) by adding at the end the following:
``(iii) Incentives.--In making rental payments to an owner
or operator of land described in subparagraph (A), the
Secretary may provide incentive payments sufficient to
encourage proper thinning and practices to improve the
condition of resources on the land.''.
(c) Annual Rental Payments.--Section 1234(c) of the Food
Security Act of 1985 (16 U.S.C. 3834(c)) is amended--
(1) in paragraph (1), by inserting ``and other eligible
land'' after ``highly erodible cropland'' both places it
appears;
(2) by striking paragraph (2) and inserting the following:
``(2) Methods of determination.--
``(A) In general.--The amounts payable to owners or
operators in the form of rental payments under contracts
entered into under this subchapter may be determined
through--
``(i) the submission of bids for such contracts by owners
and operators in such manner as the Secretary may prescribe;
or
``(ii) such other means as the Secretary determines are
appropriate.
``(B) Grassland.--In the case of eligible land described in
section 1231(b)(3), the Secretary shall make annual payments
in an amount that is not more than 75 percent of the grazing
value of the land covered by the contract.''; and
(3) in paragraph (5)(A)--
(A) by striking ``The Secretary'' and inserting the
following:
``(i) Survey.--The Secretary''; and
(B) by adding at the end the following:
``(ii) Use.--The Secretary may use the survey of dryland
cash rental rates described in clause (i) as a factor in
determining rental rates under this section as the Secretary
determines appropriate.''.
(d) Payment Schedule.--Section 1234 of the Food Security
Act of 1985 (16 U.S.C. 3834) is amended by striking
subsection (d) and inserting the following:
``(d) Payment Schedule.--
``(1) In general.--Except as otherwise provided in this
section, payments under this subchapter shall be made in cash
in such amount and on such time schedule as is agreed on and
specified in the contract.
``(2) Source.--Payments under this subchapter shall be made
using the funds of the Commodity Credit Corporation.
``(3) Advance payment.--Payments under this subchapter may
be made in advance of determination of performance.''.
(e) Payment Limitation.--Section 1234(f) of the Food
Security Act of 1985 (16 U.S.C. 3834(f)) is amended--
(1) in paragraph (1), by striking ``, including rental
payments made in the form of in-kind commodities,'';
(2) by striking paragraph (3); and
(3) by redesignating paragraph (4) as paragraph (2).
SEC. 2006. CONTRACT REQUIREMENTS.
Section 1235(f) of the Food Security Act of 1985 (16 U.S.C.
3835(f)) is amended--
(1) in paragraph (1)--
(A) in the matter preceding subparagraph (A), by striking
``Duties'' and all that follows through ``a beginning
farmer'' and inserting ``Transition to covered farmer or
rancher.--In the case of a contract modification approved in
order to facilitate the transfer of land subject to a
contract from a retired farmer or rancher to a beginning
farmer'';
(B) in subparagraph (D), by striking ``the farmer or
rancher'' and inserting ``the covered farmer or rancher'';
and
(C) in subparagraph (E), by striking ``section
1001A(b)(3)(B)'' and inserting ``section 1001''; and
(2) in paragraph (2), by striking ``requirement of section
1231(h)(4)(B)'' and inserting ``option provided under section
1234(c)(2)(A)(ii)''.
SEC. 2007. CONVERSION OF LAND SUBJECT TO CONTRACT TO OTHER
CONSERVING USES.
Section 1235A of the Food Security Act of 1985 (16 U.S.C.
3835a) is repealed.
SEC. 2008. EFFECTIVE DATE.
(a) In General.--The amendments made by this title shall
take effect on October 1, 2012, except, the amendment made by
section 2001(d), which shall take effect on the date of
enactment of this Act.
(b) Effect on Existing Contracts.--
(1) In general.--Except as provided in paragraph (2), the
amendments made by this title shall not affect the validity
or terms of any contract entered into by the Secretary of
Agriculture under subchapter B of chapter 1 of subtitle D of
title XII of the Food Security Act of 1985 (16 U.S.C. 3831 et
seq.) before October 1, 2012, or any payments required to be
made in connection with the contract.
(2) Updating of existing contracts.--The Secretary shall
permit an owner or operator with a contract entered into
under subchapter B of chapter 1 of subtitle D of title XII of
the Food Security Act of 1985 (16 U.S.C. 3831 et seq.) before
October 1, 2012, to update the contract to reflect the
activities and uses of land under contract permitted under
the terms and conditions of paragraphs (1) and (2) of section
1233(b) of that Act (as amended by section 2004).
Subtitle B--Conservation Stewardship Program
SEC. 2101. CONSERVATION STEWARDSHIP PROGRAM.
(a) Revision of Current Program.--Subchapter B of chapter 2
of subtitle D of title XII of the Food Security Act of 1985
(16 U.S.C. 3838d et seq.) is amended to read as follows:
``Subchapter B--Conservation Stewardship Program
``SEC. 1238D. DEFINITIONS.
``In this subchapter:
``(1) Agricultural operation.--The term `agricultural
operation' means all eligible land, whether or not
contiguous, that is--
``(A) under the effective control of a producer at the time
the producer enters into a contract under the program; and
``(B) operated with equipment, labor, management, and
production or cultivation practices that are substantially
separate from other agricultural operations, as determined by
the Secretary.
``(2) Conservation activities.--
``(A) In general.--The term `conservation activities' means
conservation systems, practices, or management measures.
``(B) Inclusions.--The term `conservation activities'
includes--
``(i) structural measures, vegetative measures, and land
management measures, including agriculture drainage
management systems, as determined by the Secretary; and
``(ii) planning needed to address a priority resource
concern.
``(3) Conservation stewardship plan.--The term
`conservation stewardship plan' means a plan that--
``(A) identifies and inventories priority resource
concerns;
``(B) establishes benchmark data and conservation
objectives;
``(C) describes conservation activities to be implemented,
managed, or improved; and
``(D) includes a schedule and evaluation plan for the
planning, installation, and management of the new and
existing conservation activities.
``(4) Eligible land.--
``(A) In general.--The term `eligible land' means--
``(i) private and tribal land on which agricultural
commodities, livestock, or forest-related products are
produced; and
``(ii) land associated with the land described in clause
(i) on which priority resource concerns could be addressed
through a contract under the program.
``(B) Inclusions.--The term `eligible land' includes--
``(i) cropland;
``(ii) grassland;
``(iii) rangeland;
``(iv) pastureland;
``(v) nonindustrial private forest land; and
``(vi) other agricultural land (including cropped woodland,
marshes, and agricultural land used for the production of
livestock), as determined by the Secretary.
``(5) Priority resource concern.--The term `priority
resource concern' means a natural resource concern or
problem, as determined by the Secretary, that--
``(A) is identified at the national, State or local level,
as a priority for a particular area of the State;
``(B) represents a significant concern in a State or
region; and
``(C) is likely to be addressed successfully through the
implementation of conservation activities under this program.
``(6) Program.--The term `program' means the conservation
stewardship program established by this subchapter.
``(7) Stewardship threshold.--The term `stewardship
threshold' means the level of management required, as
determined by the Secretary, to conserve and improve the
quality and condition of a natural resource.
``SEC. 1238E. CONSERVATION STEWARDSHIP PROGRAM.
``(a) Establishment and Purpose.--During each of fiscal
years 2013 through 2017, the Secretary shall carry out a
conservation stewardship program to encourage producers to
address priority resource concerns and improve and conserve
the quality and condition of natural resources in a
comprehensive manner--
``(1) by undertaking additional conservation activities;
and
``(2) by improving, maintaining, and managing existing
conservation activities.
``(b) Exclusions.--
[[Page S4018]]
``(1) Land enrolled in other conservation programs.--
Subject to paragraph (2), the following land (even if covered
by the definition of eligible land) is not eligible for
enrollment in the program:
``(A) Land enrolled in the conservation reserve program.
``(B) Land enrolled in the Agricultural Conservation
Easement Program in a wetland easement.
``(C) Land enrolled in the conservation security program.
``(2) Conversion to cropland.--Eligible land used for crop
production after October 1, 2012, that had not been planted,
considered to be planted, or devoted to crop production for
at least 4 of the 6 years preceding that date shall not be
the basis for any payment under the program, unless the land
does not meet the requirement because--
``(A) the land had previously been enrolled in the
conservation reserve program;
``(B) the land has been maintained using long-term crop
rotation practices, as determined by the Secretary; or
``(C) the land is incidental land needed for efficient
operation of the farm or ranch, as determined by the
Secretary.
``SEC. 1238F. STEWARDSHIP CONTRACTS.
``(a) Submission of Contract Offers.--To be eligible to
participate in the conservation stewardship program, a
producer shall submit a contract offer for the agricultural
operation that--
``(1) demonstrates to the satisfaction of the Secretary
that the producer, at the time of the contract offer, is
meeting the stewardship threshold for at least 2 priority
resource concerns; and
``(2) would, at a minimum, meet or exceed the stewardship
threshold for at least 1 additional priority resource concern
by the end of the stewardship contract by--
``(A) installing and adopting additional conservation
activities; and
``(B) improving, maintaining, and managing existing
conservation activities on the agricultural operation in a
manner that increases or extends the conservation benefits in
place at the time the contract offer is accepted by the
Secretary.
``(b) Evaluation of Contract Offers.--
``(1) Ranking of applications.--In evaluating contract
offers the Secretary shall rank applications based on--
``(A) the level of conservation treatment on all applicable
priority resource concerns at the time of application;
``(B) the degree to which the proposed conservation
activities effectively increase conservation performance;
``(C) the number of applicable priority resource concerns
proposed to be treated to meet or exceed the stewardship
threshold by the end of the contract;
``(D) the extent to which other priority resource concerns
will be addressed to meet or exceed the stewardship threshold
by the end of the contract period;
``(E) the extent to which the actual and anticipated
conservation benefits from the contract are provided at the
least cost relative to other similarly beneficial contract
offers; and
``(F) the extent to which priority resource concerns will
be addressed when transitioning from the conservation reserve
program to agricultural production.
``(2) Prohibition.--The Secretary may not assign a higher
priority to any application because the applicant is willing
to accept a lower payment than the applicant would otherwise
be eligible to receive.
``(3) Additional criteria.--The Secretary may develop and
use such additional criteria that the Secretary determines
are necessary to ensure that national, State, and local
priority resource concerns are effectively addressed.
``(c) Entering Into Contracts.--After a determination that
a producer is eligible for the program under subsection (a),
and a determination that the contract offer ranks
sufficiently high under the evaluation criteria under
subsection (b), the Secretary shall enter into a conservation
stewardship contract with the producer to enroll the eligible
land to be covered by the contract.
``(d) Contract Provisions.--
``(1) Term.--A conservation stewardship contract shall be
for a term of 5 years.
``(2) Required provisions.--The conservation stewardship
contract of a producer shall--
``(A) state the amount of the payment the Secretary agrees
to make to the producer for each year of the conservation
stewardship contract under section 1238G(d);
``(B) require the producer--
``(i) to implement a conservation stewardship plan that
describes the program purposes to be achieved through 1 or
more conservation activities;
``(ii) to maintain and supply information as required by
the Secretary to determine compliance with the conservation
stewardship plan and any other requirements of the program;
and
``(iii) not to conduct any activities on the agricultural
operation that would tend to defeat the purposes of the
program;
``(C) permit all economic uses of the eligible land that--
``(i) maintain the agricultural nature of the land; and
``(ii) are consistent with the conservation purposes of the
conservation stewardship contract;
``(D) include a provision to ensure that a producer shall
not be considered in violation of the contract for failure to
comply with the contract due to circumstances beyond the
control of the producer, including a disaster or related
condition, as determined by the Secretary;
``(E) include provisions where upon the violation of a term
or condition of the contract at any time the producer has
control of the land--
``(i) if the Secretary determines that the violation
warrants termination of the contract--
``(I) to forfeit all rights to receive payments under the
contract; and
``(II) to refund all or a portion of the payments received
by the producer under the contract, including any interest on
the payments, as determined by the Secretary; or
``(ii) if the Secretary determines that the violation does
not warrant termination of the contract, to refund or accept
adjustments to the payments provided to the producer, as the
Secretary determines to be appropriate;
``(F) include provisions in accordance with paragraphs (3)
and (4) of this section; and
``(G) include any additional provisions the Secretary
determines are necessary to carry out the program.
``(3) Change of interest in land subject to a contract.--
``(A) In general.--At the time of application, a producer
shall have control of the eligible land to be enrolled in the
program. Except as provided in subparagraph (B), a change in
the interest of a producer in eligible land covered by a
contract under the program shall result in the termination of
the contract with regard to that land.
``(B) Transfer of duties and rights.--Subparagraph (A)
shall not apply if--
``(i) within a reasonable period of time (as determined by
the Secretary) after the date of the change in the interest
in all or a portion of the land covered by a contract under
the program, the transferee of the land provides written
notice to the Secretary that duties and rights under the
contract have been transferred to, and assumed by, the
transferee for the portion of the land transferred;
``(ii) the transferee meets the eligibility requirements of
the program; and
``(iii) the Secretary approves the transfer of all duties
and rights under the contract.
``(4) Modification and termination of contracts.--
``(A) Voluntary modification or termination.--The Secretary
may modify or terminate a contract with a producer if--
``(i) the producer agrees to the modification or
termination; and
``(ii) the Secretary determines that the modification or
termination is in the public interest.
``(B) Involuntary termination.--The Secretary may terminate
a contract if the Secretary determines that the producer
violated the contract.
``(5) Repayment.--If a contract is terminated, the
Secretary may, consistent with the purposes of the program--
``(A) allow the producer to retain payments already
received under the contract; or
``(B) require repayment, in whole or in part, of payments
received and assess liquidated damages.
``(e) Contract Renewal.--At the end of the initial 5-year
contract period, the Secretary may allow the producer to
renew the contract for 1 additional 5-year period if the
producer--
``(1) demonstrates compliance with the terms of the
existing contract;
``(2) agrees to adopt and continue to integrate
conservation activities across the entire agricultural
operation as determined by the Secretary; and
``(3) agrees, at a minimum, to meet or exceed the
stewardship threshold for at least 2 additional priority
resource concerns on the agricultural operation by the end of
the contract period.
``SEC. 1238G. DUTIES OF THE SECRETARY.
``(a) In General.--To achieve the conservation goals of a
contract under the conservation stewardship program, the
Secretary shall--
``(1) make the program available to eligible producers on a
continuous enrollment basis with 1 or more ranking periods, 1
of which shall occur in the first quarter of each fiscal
year;
``(2) identify not less than 5 priority resource concerns
in a particular watershed or other appropriate region or area
within a State; and
``(3) establish a science-based stewardship threshold for
each priority resource concern identified under subparagraph
(2).
``(b) Allocation to States.--The Secretary shall allocate
acres to States for enrollment, based--
``(1) primarily on each State's proportion of eligible land
to the total acreage of eligible land in all States; and
``(2) also on consideration of--
``(A) the extent and magnitude of the conservation needs
associated with agricultural production in each State;
``(B) the degree to which implementation of the program in
the State is, or will be, effective in helping producers
address those needs; and
``(C) other considerations to achieve equitable geographic
distribution of funds, as determined by the Secretary.
``(c) Acreage Enrollment Limitation.--During the period
beginning on October 1, 2012, and ending on September 30,
2021, the Secretary shall, to the maximum extent
practicable--
[[Page S4019]]
``(1) enroll in the program an additional 10,348,000 acres
for each fiscal year; and
``(2) manage the program to achieve a national average rate
of $18 per acre, which shall include the costs of all
financial assistance, technical assistance, and any other
expenses associated with enrollment or participation in the
program.
``(d) Conservation Stewardship Payments.--
``(1) Availability of payments.--The Secretary shall
provide annual payments under the program to compensate the
producer for--
``(A) installing and adopting additional conservation
activities; and
``(B) improving, maintaining, and managing conservation
activities in place at the operation of the producer at the
time the contract offer is accepted by the Secretary.
``(2) Payment amount.--The amount of the conservation
stewardship annual payment shall be determined by the
Secretary and based, to the maximum extent practicable, on
the following factors:
``(A) Costs incurred by the producer associated with
planning, design, materials, installation, labor, management,
maintenance, or training.
``(B) Income forgone by the producer.
``(C) Expected conservation benefits.
``(D) The extent to which priority resource concerns will
be addressed through the installation and adoption of
conservation activities on the agricultural operation.
``(E) The level of stewardship in place at the time of
application and maintained over the term of the contract.
``(F) The degree to which the conservation activities will
be integrated across the entire agricultural operation for
all applicable priority resource concerns over the term of
the contract.
``(G) Such other factors as determined by the Secretary.
``(3) Exclusions.--A payment to a producer under this
subsection shall not be provided for--
``(A) the design, construction, or maintenance of animal
waste storage or treatment facilities or associated waste
transport or transfer devices for animal feeding operations;
or
``(B) conservation activities for which there is no cost
incurred or income forgone to the producer.
``(4) Delivery of payments.--In making stewardship
payments, the Secretary shall, to the extent practicable--
``(A) prorate conservation performance over the term of the
contract so as to accommodate, to the extent practicable,
producers earning equal annual stewardship payments in each
fiscal year; and
``(B) make stewardship payments as soon as practicable
after October 1 of each fiscal year for activities carried
out in the previous fiscal year.
``(e) Supplemental Payments for Resource-conserving Crop
Rotations.--
``(1) Availability of payments.--The Secretary shall
provide additional payments to producers that, in
participating in the program, agree to adopt resource-
conserving crop rotations to achieve beneficial crop
rotations as appropriate for the eligible land of the
producers.
``(2) Beneficial crop rotations.--The Secretary shall
determine whether a resource-conserving crop rotation is a
beneficial crop rotation eligible for additional payments
under paragraph (1), based on whether the resource-conserving
crop rotation is designed to provide natural resource
conservation and production benefits.
``(3) Eligibility.--To be eligible to receive a payment
described in paragraph (1), a producer shall agree to adopt
and maintain the resource-conserving crop rotations for the
term of the contract.
``(4) Resource-conserving crop rotation.--In this
subsection, the term `resource-conserving crop rotation'
means a crop rotation that--
``(A) includes at least 1 resource conserving crop (as
defined by the Secretary);
``(B) reduces erosion;
``(C) improves soil fertility and tilth;
``(D) interrupts pest cycles; and
``(E) in applicable areas, reduces depletion of soil
moisture or otherwise reduces the need for irrigation.
``(f) Payment Limitations.--A person or legal entity may
not receive, directly or indirectly, payments under the
program that, in the aggregate, exceed $200,000 under all
contracts entered into during fiscal years 2013 through 2017,
excluding funding arrangements with Indian tribes, regardless
of the number of contracts entered into under the program by
the person or legal entity.
``(g) Specialty Crop and Organic Producers.--The Secretary
shall ensure that outreach and technical assistance are
available, and program specifications are appropriate to
enable specialty crop and organic producers to participate in
the program.
``(h) Coordination With Organic Certification.--The
Secretary shall establish a transparent means by which
producers may initiate organic certification under the
Organic Foods Production Act of 1990 (7 U.S.C. 6501 et seq.)
while participating in a contract under the program.
``(i) Regulations.--The Secretary shall promulgate
regulations that--
``(1) prescribe such other rules as the Secretary
determines to be necessary to ensure a fair and reasonable
application of the limitations established under subsection
(f); and
``(2) otherwise enable the Secretary to carry out the
program.''.
(b) Effective Date.--The amendment made by this section
shall take effect on October 1, 2012.
(c) Effect on Existing Contracts.--
(1) In general.--The amendment made by this section shall
not affect the validity or terms of any contract entered into
by the Secretary of Agriculture under subchapter B of chapter
2 of subtitle D of title XII of the Food Security Act of 1985
(16 U.S.C. 3838d et seq.) before October 1, 2012, or any
payments required to be made in connection with the contract.
(2) Conservation stewardship program.--Funds made available
under section 1241(a)(4) of the Food Security Act of 1985 (16
U.S.C. 3841(a)(4)) (as amended by section 2601(a)) may be
used to administer and make payments to program participants
enrolled into contracts during any of fiscal years 2009
through 2012.
Subtitle C--Environmental Quality Incentives Program
SEC. 2201. PURPOSES.
Section 1240 of the Food Security Act of 1985 (16 U.S.C.
3839aa) is amended--
(1) in paragraph (3)--
(A) in subparagraph (A), by striking ``and'' at the end;
(B) by redesignating subparagraph (B) as subparagraph (C)
and, in such subparagraph, by inserting ``and'' after the
semicolon; and
(C) by inserting after subparagraph (A) the following:
``(B) develop and improve wildlife habitat; and'';
(2) in paragraph (4), by striking ``; and'' and inserting a
period; and
(3) by striking paragraph (5).
SEC. 2202. DEFINITIONS.
Section 1240A of the Food Security Act of 1985 (16 U.S.C.
3839aa 1) is amended--
(1) by striking paragraph (2) and redesignating paragraphs
(3) through (6) as paragraphs (2) through (5), respectively;
and
(2) in paragraph (2) (as so redesignated), by inserting
``established under the Organic Foods Production Act of 1990
(7 U.S.C. 6501 et seq.)'' after ``national organic program''.
SEC. 2203. ESTABLISHMENT AND ADMINISTRATION.
Section 1240B of the Food Security Act of 1985 (16 U.S.C.
3839aa 2) is amended--
(1) in subsection (a), by striking ``2014'' and inserting
``2017'';
(2) in subsection (b), by striking paragraph (2) and
inserting the following:
``(2) Term.--A contract under the program shall have a term
that does not exceed 10 years.'';
(3) in subsection (d)--
(A) in paragraph (3), by striking subparagraphs (A) through
(G) and inserting the following:
``(A) soil health;
``(B) water quality and quantity improvement;
``(C) nutrient management;
``(D) pest management;
``(E) air quality improvement;
``(F) wildlife habitat development, including pollinator
habitat;
``(G) invasive species management; or
``(H) other resource issues of regional or national
significance, as determined by the Secretary.''; and
(B) in paragraph (4)--
(i) in subparagraph (A) in the matter preceding clause (i),
by inserting ``, veteran farmer or rancher (as defined in
section 2501(e) of the Food, Agriculture, Conservation, and
Trade Act of 1990 (7 U.S.C. 2279(e))),'' before ``or a
beginning farmer or rancher''; and
(ii) by striking subparagraph (B) and inserting the
following:
``(B) Advance payments.--
``(i) In general.--Not more than 30 percent of the amount
determined under subparagraph (A) may be provided in advance
for the purpose of purchasing materials or contracting.
``(ii) Return of funds.--If funds provided in advance are
not expended during the 90-day period beginning on the date
of receipt of the funds, the funds shall be returned within a
reasonable time frame, as determined by the Secretary.'';
(4) by striking subsection (f) and inserting the following:
``(f) Allocation of Funding.--
``(1) Livestock.--For each of fiscal years 2013 through
2017, at least 60 percent of the funds made available for
payments under the program shall be targeted at practices
relating to livestock production.
``(2) Wildlife habitat.--For each of fiscal years 2013
through 2017, at least 5 percent of the funds made available
for payments under the program shall be targeted at practices
benefitting wildlife habitat under subsection (g).''; and
(5) by striking subsection (g) and inserting the following:
``(g) Wildlife Habitat Incentive Practice.--The Secretary
shall provide payments under the program for conservation
practices that support the restoration, development, and
improvement of wildlife habitat on eligible land, including--
``(1) upland wildlife habitat;
``(2) wetland wildlife habitat;
``(3) habitat for threatened and endangered species;
``(4) fish habitat;
``(5) habitat on pivot corners and other irregular areas of
a field; and
``(6) other types of wildlife habitat, as determined by the
Secretary.''.
[[Page S4020]]
SEC. 2204. EVALUATION OF APPLICATIONS.
Section 1240C(b) of the Food Security Act of 1985 (16
U.S.C. 3839aa 3(b)) is amended--
(1) in paragraph (1), by striking ``environmental'' and
inserting ``conservation''; and
(2) in paragraph (3), by striking ``purpose of the
environmental quality incentives program specified in section
1240(1)'' and inserting ``purposes of the program''.
SEC. 2205. DUTIES OF PRODUCERS.
Section 1240D(2) of the Food Security Act of 1985 (16
U.S.C. 3839aa 4(2)) is amended by striking ``farm, ranch, or
forest'' and inserting ``enrolled''.
SEC. 2206. LIMITATION ON PAYMENTS.
Section 1240G of the Food Security Act of 1985 (16 U.S.C.
3839aa 7) is amended--
(1) in subsection (a)--
(A) by striking ``by the person or entity during any six-
year period,'' and inserting ``during fiscal years 2013
through 2017''; and
(B) by striking ``federally recognized'' and all that
follows through the period and inserting ``Indian tribes
under section 1244(l).''; and
(2) in subsection (b)(2), by striking ``any six-year
period'' and inserting ``fiscal years 2013 through 2017''.
SEC. 2207. CONSERVATION INNOVATION GRANTS AND PAYMENTS.
Section 1240H of the Food Security Act of 1985 (16 U.S.C.
3839aa 8) is amended by striking subsection (b) and inserting
the following:
``(b) Reporting.--Not later than December 31, 2013, and
every 2 years thereafter, the Secretary shall submit to the
Committee on Agriculture, Nutrition, and Forestry of the
Senate and the Committee on Agriculture of the House of
Representatives a report on the status of projects funded
under this section, including--
``(1) funding awarded;
``(2) project results; and
``(3) incorporation of project findings, such as new
technology and innovative approaches, into the conservation
efforts implemented by the Secretary.''.
SEC. 2208. EFFECTIVE DATE.
(a) In General.--The amendments made by this title shall
take effect on October 1, 2012.
(b) Effect on Existing Contracts.--The amendments made by
this title shall not affect the validity or terms of any
contract entered into by the Secretary of Agriculture under
chapter 4 of subtitle D of title XII of the Food Security Act
of 1985 (16 U.S.C. 3839aa et seq.) before October 1, 2012, or
any payments required to be made in connection with the
contract.
Subtitle D--Agricultural Conservation Easement Program
SEC. 2301. AGRICULTURAL CONSERVATION EASEMENT PROGRAM.
(a) Establishment.--Title XII of the Food Security Act of
1985 is amended by adding at the end the following:
``Subtitle H--Agricultural Conservation Easement Program
``SEC. 1265. ESTABLISHMENT AND PURPOSES.
``(a) Establishment.--The Secretary shall establish an
Agricultural Conservation Easement Program for the
conservation of eligible land and natural resources through
easements or other interests in land.
``(b) Purposes.--The purposes of the program are to--
``(1) combine the purposes and coordinate the functions of
the wetlands reserve program established under section 1237,
the grassland reserve program established under section
1238N, and the farmland protection program established under
section 1238I;
``(2) restore, protect, and enhance wetland on eligible
land;
``(3) protect the agricultural use, viability, and related
conservation values of eligible land by limiting
nonagricultural uses of that land; and
``(4) protect grazing uses and related conservation values
by restoring and conserving eligible land.
``SEC. 1265A. DEFINITIONS.
``In this subtitle:
``(1) Agricultural land easement.--The term `agricultural
land easement' means an easement or other interest in
eligible land that--
``(A) is conveyed for the purposes of protecting natural
resources and the agricultural nature of the land, and of
promoting agricultural viability for future generations; and
``(B) permits the landowner the right to continue
agricultural production and related uses subject to an
agricultural land easement plan.
``(2) Eligible entity.--The term `eligible entity' means--
``(A) an agency of State or local government or an Indian
tribe (including farmland protection board or land resource
council established under State law); or
``(B) an organization that is--
``(i) organized for, and at all times since the formation
of the organization has been operated principally for, 1 or
more of the conservation purposes specified in clause (i),
(ii), (iii), or (iv) of section 170(h)(4)(A) of the Internal
Revenue Code of 1986;
``(ii) an organization described in section 501(c)(3) of
that Code that is exempt from taxation under section 501(a)
of that Code; or
``(iii) described in--
``(I) paragraph (1) or (2) of section 509(a) of that Code;
or
``(II) section 509(a)(3) of that Code and is controlled by
an organization described in section 509(a)(2) of that Code.
``(3) Eligible land.--The term `eligible land' means
private or tribal land that is--
``(A) in the case of an agricultural land easement,
agricultural land, including land on a farm or ranch--
``(i) that is subject to a pending offer for purchase from
an eligible entity;
``(ii) that--
``(I) has prime, unique, or other productive soil;
``(II) contains historical or archaeological resources; or
``(III) the protection of which will further a State or
local policy consistent with the purposes of the program; and
``(iii) that is--
``(I) cropland;
``(II) rangeland;
``(III) grassland or land that contains forbs, or shrubland
for which grazing is the predominant use;
``(IV) pastureland; or
``(V) nonindustrial private forest land that contributes to
the economic viability of an offered parcel or serves as a
buffer to protect such land from development;
``(B) in the case of a wetland easement, a wetland or
related area, including--
``(i) farmed or converted wetland, together with the
adjacent land that is functionally dependent on that land if
the Secretary determines it--
``(I) is likely to be successfully restored in a cost
effective manner; and
``(II) will maximize the wildlife benefits and wetland
functions and values as determined by the Secretary in
consultation with the Secretary of the Interior at the local
level;
``(ii) cropland or grassland that was used for agricultural
production prior to flooding from the natural overflow of a
closed basin lake or pothole, as determined by the Secretary,
together (where practicable) with the adjacent land that is
functionally dependent on the cropland or grassland;
``(iii) farmed wetland and adjoining land that--
``(I) is enrolled in the conservation reserve program;
``(II) has the highest wetland functions and values; and
``(III) is likely to return to production after the land
leaves the conservation reserve program;
``(iv) riparian areas that link wetland that is protected
by easements or some other device that achieves the same
purpose as an easement; or
``(v) other wetland of an owner that would not otherwise be
eligible if the Secretary determines that the inclusion of
such wetland in such easement would significantly add to the
functional value of the easement; and
``(C) in the case of both an agricultural land easement or
wetland easement, other land that is incidental to eligible
land if the Secretary determines that it is necessary for the
efficient administration of the easements under this program.
``(4) Program.--The term `program' means the Agricultural
Conservation Easement Program established by this subtitle.
``(5) Wetland easement.--The term `wetland easement' means
a reserved interest in eligible land that--
``(A) is defined and delineated in a deed; and
``(B) stipulates--
``(i) the rights, title, and interests in land conveyed to
the Secretary; and
``(ii) the rights, title, and interests in land that are
reserved to the landowner.
``SEC. 1265B. AGRICULTURAL LAND EASEMENTS.
``(a) Availability of Assistance.--The Secretary shall
facilitate and provide funding for--
``(1) the purchase of agricultural land easements and other
interests in eligible land; and
``(2) technical assistance to provide for the conservation
of natural resources pursuant to an agricultural land
easement plan.
``(b) Cost-share Assistance.--
``(1) In general.--The Secretary shall provide cost-share
assistance to eligible entities for purchasing agricultural
land easements to protect the agricultural use, including
grazing, and related conservation values of eligible land.
``(2) Scope of assistance available.--
``(A) Federal share.--Subject to subparagraph (C), an
agreement described in paragraph (4) shall provide for a
Federal share determined by the Secretary of an amount not to
exceed 50 percent of the fair market value of the
agricultural land easement or other interest in land, as
determined by the Secretary using--
``(i) the Uniform Standards of Professional Appraisal
Practices;
``(ii) an area-wide market analysis or survey; or
``(iii) another industry approved method.
``(B) Non-federal share.--
``(i) In general.--Subject to subparagraph (C), under the
agreement, the eligible entity shall provide a share that is
at least equivalent to that provided by the Secretary.
``(ii) Source of contribution.--An eligible entity may
include as part of its share a charitable donation or
qualified conservation contribution (as defined by section
170(h) of the Internal Revenue Code of 1986) from the private
landowner if the eligible entity contributes its own cash
resources in an amount that is at least 50 percent of the
amount contributed by the Secretary.
``(C) Waiver authority.--In the case of grassland of
special environmental significance, as determined by the
Secretary, the Secretary may provide up to 75 percent of the
fair market value of the agricultural land easement.
[[Page S4021]]
``(3) Evaluation and ranking of applications.--
``(A) Criteria.--The Secretary shall establish evaluation
and ranking criteria to maximize the benefit of Federal
investment under the program.
``(B) Considerations.--In establishing the criteria, the
Secretary shall emphasize support for--
``(i) protecting agricultural uses and related conservation
values of the land; and
``(ii) maximizing the protection of contiguous acres
devoted to agricultural use.
``(C) Bidding down.--If the Secretary determines that 2 or
more applications for cost-share assistance are comparable in
achieving the purpose of the program, the Secretary shall not
assign a higher priority to any of those applications solely
on the basis of lesser cost to the program.
``(4) Agreements with eligible entities.--
``(A) In general.--The Secretary shall enter into
agreements with eligible entities to stipulate the terms and
conditions under which the eligible entity is permitted to
use cost-share assistance provided under this section.
``(B) Length of agreements.--An agreement shall be for a
term that is--
``(i) in the case of an eligible entity certified under the
process described in paragraph (5), a minimum of 5 years; and
``(ii) for all other eligible entities, at least 3, but not
more than 5 years.
``(C) Minimum terms and conditions.--An eligible entity
shall be authorized to use its own terms and conditions for
agricultural land easements so long as the Secretary
determines such terms and conditions--
``(i) are consistent with the purposes of the program;
``(ii) are permanent or for the maximum duration allowed
under applicable State law;
``(iii) permit effective enforcement of the conservation
purposes of such easements, including appropriate
restrictions depending on the purposes for which the easement
is acquired;
``(iv) include a right of enforcement for the Secretary;
``(v) subject the land purchased to an agricultural land
easement plan that--
``(I) describes the activities which promote the long-term
viability of the land to meet the purposes for which the
easement was acquired;
``(II) requires the management of grassland according to a
grassland management plan; and
``(III) includes a conservation plan, where appropriate,
and requires, at the option of the Secretary, the conversion
of highly erodible cropland to less intensive uses; and
``(vi) include a limit on the impervious surfaces to be
allowed that is consistent with the agricultural activities
to be conducted.
``(D) Substitution of qualified projects.--An agreement
shall allow, upon mutual agreement of the parties,
substitution of qualified projects that are identified at the
time of the proposed substitution.
``(E) Effect of violation.--If a violation occurs of a term
or condition of an agreement under this subsection--
``(i) the agreement may be terminated; and
``(ii) the Secretary may require the eligible entity to
refund all or part of any payments received by the entity
under the program, with interest on the payments as
determined appropriate by the Secretary.
``(5) Certification of eligible entities.--
``(A) Certification process.--The Secretary shall establish
a process under which the Secretary may--
``(i) directly certify eligible entities that meet
established criteria;
``(ii) enter into long-term agreements with certified
eligible entities; and
``(iii) accept proposals for cost-share assistance for the
purchase of agricultural land easements throughout the
duration of such agreements.
``(B) Certification criteria.--In order to be certified, an
eligible entity shall demonstrate to the Secretary that the
entity will maintain, at a minimum, for the duration of the
agreement--
``(i) a plan for administering easements that is consistent
with the purpose of this subtitle;
``(ii) the capacity and resources to monitor and enforce
agricultural land easements; and
``(iii) policies and procedures to ensure--
``(I) the long-term integrity of agricultural land
easements on eligible land;
``(II) timely completion of acquisitions of easements; and
``(III) timely and complete evaluation and reporting to the
Secretary on the use of funds provided under the program.
``(C) Review and revision.--
``(i) Review.--The Secretary shall conduct a review of
eligible entities certified under subparagraph (A) every 3
years to ensure that such entities are meeting the criteria
established under subparagraph (B).
``(ii) Revocation.--If the Secretary finds that the
certified entity no longer meets the criteria established
under subparagraph (B), the Secretary may--
``(I) allow the certified entity a specified period of
time, at a minimum 180 days, in which to take such actions as
may be necessary to meet the criteria; and
``(II) revoke the certification of the entity, if after the
specified period of time, the certified entity does not meet
such criteria.
``(c) Technical Assistance.--The Secretary may provide
technical assistance, if requested, to assist in--
``(1) compliance with the terms and conditions of
easements; and
``(2) implementation of an agricultural land easement plan.
``SEC. 1265C. WETLAND EASEMENTS.
``(a) Availability of Assistance.--The Secretary shall
provide assistance to owners of eligible land to restore,
protect, and enhance wetland through--
``(1) easements and related wetland easement plans; and
``(2) technical assistance.
``(b) Easements.--
``(1) Method of enrollment.--The Secretary shall enroll
eligible land through the use of--
``(A) 30-year easements;
``(B) permanent easements;
``(C) easements for the maximum duration allowed under
applicable State laws; or
``(D) as an option for Indian tribes only, 30-year
contracts.
``(2) Limitations.--
``(A) Ineligible land.--The Secretary may not acquire
easements on--
``(i) land established to trees under the conservation
reserve program, except in cases where the Secretary
determines it would further the purposes of the program; and
``(ii) farmed wetland or converted wetland where the
conversion was not commenced prior to December 23, 1985.
``(B) Changes in ownership.--No easement shall be created
on land that has changed ownership during the preceding 24-
month period unless--
``(i) the new ownership was acquired by will or succession
as a result of the death of the previous owner;
``(ii)(I) the ownership change occurred because of
foreclosure on the land; and
``(II) immediately before the foreclosure, the owner of the
land exercises a right of redemption from the mortgage holder
in accordance with State law; or
``(iii) the Secretary determines that the land was acquired
under circumstances that give adequate assurances that such
land was not acquired for the purposes of placing it in the
program.
``(3) Evaluation and ranking of offers.--
``(A) Criteria.--The Secretary shall establish evaluation
and ranking criteria to maximize the benefit of Federal
investment under the program.
``(B) Considerations.--When evaluating offers from
landowners, the Secretary may consider--
``(i) the conservation benefits of obtaining an easement or
30-year contract, including the potential environmental
benefits if the land was removed from agricultural
production;
``(ii) the cost-effectiveness of each easement or 30-year
contract, so as to maximize the environmental benefits per
dollar expended;
``(iii) whether the landowner or another person is offering
to contribute financially to the cost of the easement or 30-
year contract to leverage Federal funds; and
``(iv) such other factors as the Secretary determines are
necessary to carry out the purposes of the program.
``(C) Priority.--The Secretary shall place priority on
acquiring easements based on the value of the easement for
protecting and enhancing habitat for migratory birds and
other wildlife.
``(4) Agreement.--To be eligible to place eligible land
into the program through a wetland easement, the owner of
such land shall enter into an agreement with the Secretary
to--
``(A) grant an easement on such land to the Secretary;
``(B) authorize the implementation of a wetland easement
plan;
``(C) create and record an appropriate deed restriction in
accordance with applicable State law to reflect the easement
agreed to;
``(D) provide a written statement of consent to such
easement signed by those holding a security interest in the
land;
``(E) comply with the terms and conditions of the easement
and any related agreements; and
``(F) permanently retire any existing cropland base and
allotment history for the land on which the easement has been
obtained.
``(5) Terms and conditions of easement.--
``(A) In general.--A wetland easement shall include terms
and conditions that--
``(i) permit--
``(I) repairs, improvements, and inspections on the land
that are necessary to maintain existing public drainage
systems; and
``(II) owners to control public access on the easement
areas while identifying access routes to be used for
restoration activities and management and easement
monitoring;
``(ii) prohibit--
``(I) the alteration of wildlife habitat and other natural
features of such land, unless specifically authorized by the
Secretary;
``(II) the spraying of such land with chemicals or the
mowing of such land, except where such spraying or mowing is
authorized by the Secretary or is necessary--
``(aa) to comply with Federal or State noxious weed control
laws;
``(bb) to comply with a Federal or State emergency pest
treatment program; or
``(cc) to meet habitat needs of specific wildlife species;
``(III) any activities to be carried out on the owner's or
successor's land that is immediately adjacent to, and
functionally related to, the land that is subject to the
easement if such activities will alter, degrade, or otherwise
diminish the functional value of the eligible land; and
[[Page S4022]]
``(IV) the adoption of any other practice that would tend
to defeat the purposes of the program, as determined by the
Secretary;
``(iii) provide for the efficient and effective
establishment of wetland functions and values; and
``(iv) include such additional provisions as the Secretary
determines are desirable to carry out the program or
facilitate the practical administration thereof.
``(B) Violation.--On the violation of the terms or
conditions of the easement, the easement shall remain in
force and the Secretary may require the owner to refund all
or part of any payments received by the owner under the
program, together with interest thereon as determined
appropriate by the Secretary.
``(C) Compatible uses.--Land subject to a wetland easement
may be used for compatible economic uses, including such
activities as hunting and fishing, managed timber harvest, or
periodic haying or grazing, if such use is specifically
permitted by the wetland easement plan and is consistent with
the long-term protection and enhancement of the wetland
resources for which the easement was established.
``(D) Reservation of grazing rights.--The Secretary may
include in the terms and conditions of an easement a
provision under which the owner reserves grazing rights if--
``(i) the Secretary determines that the reservation and use
of the grazing rights--
``(I) is compatible with the land subject to the easement;
``(II) is consistent with the historical natural uses of
the land and long-term protection and enhancement goals for
which the easement was established; and
``(III) complies with the wetland easement plan; and
``(ii) the agreement provides for a commensurate reduction
in the easement payment to account for the grazing value, as
determined by the Secretary.
``(E) Application.--The relevant provisions of this
paragraph shall also apply to a 30-year contract.
``(6) Compensation.--
``(A) Determination.--
``(i) In general.--The Secretary shall pay as compensation
for a permanent easement acquired an amount necessary to
encourage enrollment in the program based on the lowest of--
``(I) the fair market value of the land, as determined by
the Secretary, using the Uniform Standards of Professional
Appraisal Practices or an area-wide market analysis or
survey;
``(II) the amount corresponding to a geographical cap, as
determined by the Secretary in regulations; or
``(III) the offer made by the landowner.
``(ii) Other.--Compensation for a 30-year contract or 30-
year easement shall be not less than 50 percent, but not more
than 75 percent, of the compensation that would be paid for a
permanent easement.
``(B) Form of payment.--Compensation shall be provided by
the Secretary in the form of a cash payment, in an amount
determined under subparagraph (A).
``(C) Payment schedule.--
``(i) Easements valued at less than $500,000.--For
easements valued at $500,000 or less, the Secretary may
provide easement payments in not more than 10 annual
payments.
``(ii) Easements valued at more than $500,000.--For
easements valued at more than $500,000, the Secretary may
provide easement payments in at least 5, but not more than 10
annual payments, except that, if the Secretary determines it
would further the purposes of the program, the Secretary may
make a lump sum payment for such an easement.
``(c) Easement Restoration.--
``(1) In general.--The Secretary shall provide financial
assistance to carry out the establishment of conservation
measures and practices and protect wetland functions and
values, including necessary maintenance activities, as set
forth in a wetland easement plan.
``(2) Payments.--The Secretary shall--
``(A) in the case of a permanent easement, pay an amount
that is not less than 75 percent, but not more than 100
percent, of the eligible costs; and
``(B) in the case of a 30-year contract or 30-year
easement, pay an amount that is not less than 50 percent, but
not more than 75 percent, of the eligible costs.
``(d) Technical Assistance.--
``(1) In general.--The Secretary shall assist owners in
complying with the terms and conditions of easements and 30-
year contracts.
``(2) Contracts or agreements.--The Secretary may enter
into 1 or more contracts with private entities or agreements
with a State, non-governmental organization, or Indian tribe
to carry out necessary restoration, enhancement or
maintenance of an easement if the Secretary determines that
the contract or agreement will advance the purposes of the
program.
``(e) Wetland Enhancement Option.--The Secretary may enter
into 1 or more agreements with a State (including a political
subdivision or agency of a State), nongovernmental
organization, or Indian tribe to carry out a special wetland
enhancement option that the Secretary determines would
advance the purposes of the program.
``(f) Administration.--
``(1) Wetland easement plan.--The Secretary shall develop a
wetland easement plan for eligible land subject to a wetland
easement, which will include the practices and activities
necessary to restore, protect, enhance, and maintain the
enrolled land.
``(2) Delegation of easement administration.--
``(A) In general.--The Secretary may delegate any of the
easement management, monitoring, and enforcement
responsibilities of the Secretary to other Federal or State
agencies that have the appropriate authority, expertise and
resources necessary to carry out such delegated
responsibilities or to other conservation organizations if
the Secretary determines the organization has similar
expertise and resources.
``(B) Limitation.--The Secretary shall not delegate any of
the monitoring or enforcement responsibilities under the
program to conservation organizations.
``(3) Payments.--
``(A) Timing of payments.--The Secretary shall provide
payment for obligations incurred by the Secretary under this
section--
``(i) with respect to any easement restoration obligation
as soon as possible after the obligation is incurred; and
``(ii) with respect to any annual easement payment
obligation incurred by the Secretary as soon as possible
after October 1 of each calendar year.
``(B) Payments to others.--If an owner who is entitled to a
payment dies, becomes incompetent, is otherwise unable to
receive such payment, or is succeeded by another person or
entity who renders or completes the required performance, the
Secretary shall make such payment, in accordance with
regulations prescribed by the Secretary and without regard to
any other provision of law, in such manner as the Secretary
determines is fair and reasonable in light of all of the
circumstances.
``SEC. 1265D. ADMINISTRATION.
``(a) Ineligible Land.--The Secretary may not acquire an
easement under the program on--
``(1) land owned by an agency of the United States, other
than land held in trust for Indian tribes;
``(2) land owned in fee title by a State, including an
agency or a subdivision of a State, or a unit of local
government;
``(3) land subject to an easement or deed restriction
which, as determined by the Secretary, provides similar
protection as would be provided by enrollment in the program;
and
``(4) land where the purposes of the program would be
undermined due to on-site or off-site conditions, such as
risk of hazardous substances, proposed or existing rights of
way, infrastructure development, or adjacent land uses.
``(b) Priority.--In evaluating applications under the
program, the Secretary may give priority to land that is
currently enrolled in the conservation reserve program in a
contract that is set to expire within 1 year and--
``(1) in the case of an agricultural land easement, is
grassland that would benefit from protection under a long-
term easement; and
``(2) in the case of a wetland easement, is a wetland or
related area with the highest functions and values and is
likely to return to production after the land leaves the
conservation reserve program.
``(c) Subordination, Exchange, Modification, and
Termination.--
``(1) In general.--The Secretary may subordinate, exchange,
terminate, or modify any interest in land, or portion of such
interest, administered by the Secretary, either directly or
on behalf of the Commodity Credit Corporation under the
program when the Secretary determines that--
``(A) it is in the Federal Government's interest to
subordinate, exchange, modify or terminate the interest in
land;
``(B) the subordination, exchange, modification, or
termination action--
``(i) will address a compelling public need for which there
is no practicable alternative, or
``(ii) such action will further the practical
administration of the program; and
``(C) the subordination, exchange, modification, or
termination action will result in comparable conservation
value and equivalent or greater economic value to the United
States.
``(2) Consultation.--The Secretary shall work with the
current owner, and eligible entity if applicable, to address
any subordination, exchange, termination, or modification of
the interest, or portion of such interest in land.
``(3) Notice.--At least 90 days before taking any
termination action described in paragraph (1), the Secretary
shall provide written notice of such action to the Committee
on Agriculture of the House of Representatives and the
Committee on Agriculture, Nutrition, and Forestry of the
Senate.
``(d) Land Enrolled in Other Programs.--
``(1) Conservation reserve program.--The Secretary may
terminate or modify an existing contract entered into under
section 1231(a) if eligible land that is subject to such
contract is transferred into the program.
``(2) Other.--Land enrolled in the wetlands reserve
program, grassland reserve program, or farmland protection
program shall be considered enrolled in this program.
``(e) Allocation of Funds for Agricultural Land
Easements.--Of the funds made available under section 1241 to
carry out the program for a fiscal year, the Secretary shall,
to the extent practicable, use no less
[[Page S4023]]
than 40 percent for agricultural land easements.''.
(b) Compliance With Certain Requirements.--Before an
eligible entity or owner of eligible land may receive
assistance under subtitle H of title XII of the Food Security
Act of 1985, the eligible entity or person shall agree,
during the crop year for which the assistance is provided and
in exchange for the assistance--
(1) to comply with applicable conservation requirements
under subtitle B of title XII of that Act (16 U.S.C. 3811 et
seq.); and
(2) to comply with applicable wetland protection
requirements under subtitle C of title XII of that Act (16
U.S.C. 3821 et seq.).
(c) Cross Reference.--Section 1244 of the Food Security Act
of 1985 (16 U.S.C. 3844) is amended--
(1) in subsection (c)--
(A) in paragraph (1)--
(i) by inserting ``and'' at the end of subparagraph (A);
(ii) by striking ``and'' at the end of subparagraph (B);
and
(iii) by striking subparagraph (C);
(B) by redesignating paragraph (2) as paragraph (3); and
(C) by inserting after paragraph (1) the following:
``(2) the Agricultural Conservation Easement Program
established under subtitle H; and''; and
(2) in subsection (f)--
(A) in paragraph (1)--
(i) in subparagraph (A), by striking ``programs
administered under subchapters B and C of chapter 1 of
subtitle D'' and inserting ``conservation reserve program
established under subchapter B of chapter 1 of subtitle D and
the Agricultural Conservation Easement Program under subtitle
H using wetland easements under section 1265C''; and
(ii) in subparagraph (B), by striking ``subchapter C of
chapter 1 of subtitle D'' and inserting ``the Agricultural
Conservation Easement Program under subtitle H using wetland
easements under section 1265C''; and
(B) in paragraph (4), by striking ``subchapter C'' and
inserting ``subchapter B''.
(d) Effective Date.--The amendments made by this section
shall take effect on October 1, 2012.
Subtitle E--Regional Conservation Partnership Program
SEC. 2401. REGIONAL CONSERVATION PARTNERSHIP PROGRAM.
(a) In General.--Title XII of the Food Security Act of 1985
is amended by inserting after subtitle H (as added by section
2301) the following:
``Subtitle I--Regional Conservation Partnership Program
``SEC. 1271. ESTABLISHMENT AND PURPOSES.
``(a) Establishment.--The Secretary shall establish a
Regional Conservation Partnership Program to implement
eligible activities through--
``(1) partnership agreements with eligible partners; and
``(2) contracts with producers.
``(b) Purposes.--The purposes of the program are--
``(1) to combine the purposes and coordinate the functions
of--
``(A) the agricultural water enhancement program
established under section 1240I;
``(B) the Chesapeake Bay watershed program established
under section 1240Q;
``(C) the cooperative conservation partnership initiative
established under section 1243; and
``(D) the Great Lakes basin program for soil erosion and
sediment control established under section 1240P;.
``(2) to further the conservation, restoration, and
sustainable use of soil, water, wildlife, and related natural
resources on a regional or watershed scale; and
``(3) to encourage partners to cooperate with producers
in--
``(A) meeting or avoiding the need for national, State, and
local natural resource regulatory requirements related to
production; and
``(B) implementing projects that will result in the
installation and maintenance of eligible activities that
affect multiple agricultural or nonindustrial private forest
operations on a local, regional, State, or multi-State basis.
``SEC. 1271A. DEFINITIONS.
``In this subtitle:
``(1) Covered programs.--The term `covered programs'
means--
``(A) the agricultural conservation easement program;
``(B) the environmental quality incentives program; and
``(C) the conservation stewardship program.
``(2) Eligible activity.--The term `eligible activity'
means any of the following conservation activities when
delivered through a covered program:
``(A) Water quality restoration or enhancement projects,
including nutrient management and sediment reduction.
``(B) Water quantity conservation, restoration, or
enhancement projects relating to surface water and
groundwater resources, including--
``(i) the conversion of irrigated cropland to the
production of less water-intensive agricultural commodities
or dryland farming; and
``(ii) irrigation system improvement and irrigation
efficiency enhancement.
``(C) Drought mitigation.
``(D) Flood prevention.
``(E) Water retention.
``(F) Habitat conservation, restoration, and enhancement.
``(G) Erosion control.
``(H) Other related activities that the Secretary
determines will help achieve conservation benefits.
``(3) Eligible partner.--The term `eligible partner' means
any of the following:
``(A) An agricultural or silvicultural producer association
or other group of producers.
``(B) A State or unit of local government.
``(C) An Indian tribe.
``(D) A farmer cooperative.
``(E) An institution of higher education.
``(F) An organization with an established history of
working cooperatively with producers on agricultural land, as
determined by the Secretary, to address--
``(i) local conservation priorities related to agricultural
production, wildlife habitat development, and nonindustrial
private forest land management; or
``(ii) critical watershed-scale soil erosion, water
quality, sediment reduction, or other natural resource
concerns.
``(4) Partnership agreement.--The term `partnership
agreement' means an agreement between the Secretary and an
eligible partner.
``(5) Program.--The term `program' means the Regional
Conservation Partnership Program established by this
subtitle.
``SEC. 1271B. REGIONAL CONSERVATION PARTNERSHIPS.
``(a) Partnership Agreements Authorized.--The Secretary may
enter into a partnership agreement with an eligible partner
to implement a project that will assist producers with
installing and maintaining an eligible activity.
``(b) Length.--A partnership agreement shall be for a
period not to exceed 5 years, except that the Secretary may
extend the agreement 1 time for up to 12 months when an
extension is necessary to meet the objectives of the program.
``(c) Duties of Partners.--
``(1) In general.--Under a partnership agreement, the
eligible partner shall--
``(A) define the scope of a project, including--
``(i) the eligible activities to be implemented;
``(ii) the potential agricultural or nonindustrial private
forest operations affected;
``(iii) the local, State, multi-State or other geographic
area covered; and
``(iv) the planning, outreach, implementation and
assessment to be conducted;
``(B) conduct outreach and education to producers for
potential participation in the project;
``(C) at the request of a producer, act on behalf of a
producer participating in the project in applying for
assistance under section 1271C;
``(D) leverage financial or technical assistance provided
by the Secretary with additional funds to help achieve the
project objectives;
``(E) conduct an assessment of the project's effects; and
``(F) at the conclusion of the project, report to the
Secretary on its results and funds leveraged.
``(2) Contribution.--A partner shall provide a significant
portion of the overall costs of the scope of the project as
determined by the Secretary.
``(d) Applications.--
``(1) Competitive process.--The Secretary shall conduct a
competitive process to select applications for partnership
agreements and may assess and rank applications with similar
conservation purposes as a group.
``(2) Criteria used.--In carrying out the process described
in paragraph (1), the Secretary shall make public the
criteria used in evaluating applications.
``(3) Content.--An application to the Secretary shall
include a description of--
``(A) the scope of the project as described in subsection
(c)(1)(A);
``(B) the plan for monitoring, evaluating, and reporting on
progress made towards achieving the project's objectives;
``(C) the program resources requested for the project,
including the covered programs to be used and estimated
funding needed from the Secretary;
``(D) the partners collaborating to achieve project
objectives, including their roles, responsibilities,
capabilities, and financial contribution; and
``(E) any other elements the Secretary considers necessary
to adequately evaluate and competitively select applications
for funding under the program.
``(4) Application selection.--
``(A) Priority to certain applications.--The Secretary
shall give a higher priority to applications that--
``(i) assist producers in meeting or avoiding the need for
a natural resource regulatory requirement;
``(ii) significantly leverage non-Federal financial and
technical resources and coordinate with other local, State,
regional, or national efforts;
``(iii) deliver high percentages of applied conservation to
address conservation priorities or local, State, regional, or
national conservation initiatives; or
``(iv) provide innovation in conservation methods and
delivery, including outcome-based performance measures and
methods.
``(B) Other applications.--The Secretary may give priority
to applications that--
``(i) have a high percentage of producers in the area to be
covered by the agreement; or
[[Page S4024]]
``(ii) meet other factors that are important for achieving
the purposes of the program, as determined by the Secretary.
``SEC. 1271C. ASSISTANCE TO PRODUCERS.
``(a) In General.--The Secretary shall enter into contracts
to provide financial and technical assistance to--
``(1) producers participating in a project with an eligible
partner as described in section 1271B; or
``(2) producers that fit within the scope of a project
described in section 1271B or a critical conservation area
designated pursuant to section 1271F, but who are seeking to
implement an eligible activity independent of a partner.
``(b) Terms and Conditions.--
``(1) Consistency with program rules.--
``(A) In general.--Except as provided in subparagraph (B),
the Secretary shall ensure that the terms and conditions of a
contract under this section are consistent with the
applicable rules of the covered programs to be used as part
of the project, as described in the application under section
1271B(d)(3)(C).
``(B) Adjustments.--Except for statutory program
requirements governing appeals, payment limitations, and
conservation compliance, the Secretary may adjust the
discretionary program rules of a covered program--
``(i) to provide a simplified application and evaluation
process; and
``(ii) to better reflect unique local circumstances and
purposes if the Secretary determines such adjustments are
necessary to achieve the purposes of the program.
``(2) Alternative funding arrangements.--
``(A) In general.--For the purposes of providing assistance
for land described in subsection (a) and section 1271F, the
Secretary may enter into alternative funding arrangements
with a multistate water resource agency or authority if--
``(i) the Secretary determines that the goals and
objectives of the program will be met by the alternative
funding arrangements;
``(ii) the agency or authority certifies that the
limitations established under this section on agreements with
individual producers will not be exceeded; and
``(iii) all participating producers meet applicable payment
eligibility provisions.
``(B) Conditions.--As a condition on receipt of funding
under subparagraph (A), the multistate water resource agency
or authority shall agree--
``(i) to submit an annual independent audit to the
Secretary that describes the use of funds under this
paragraph;
``(ii) to provide any data necessary for the Secretary to
issue a report on the use of funds under this paragraph; and
``(iii) not to use any funds for administration or
contracting with another entity.
``(C) Limitation.--The Secretary may enter into not more
than 10 alternative funding arrangements under this
paragraph.
``(c) Payments.--
``(1) In general.--In accordance with statutory
requirements of the covered programs involved, the Secretary
may make payments to a producer in an amount determined by
the Secretary to be necessary to achieve the purposes of the
program.
``(2) Payments to certain producers.--The Secretary may
provide payments for a period of 5 years--
``(A) to producers participating in a project that
addresses water quantity concerns and in an amount sufficient
to encourage conversion from irrigated to dryland farming;
and
``(B) to producers participating in a project that
addresses water quality concerns and in an amount sufficient
to encourage adoption of conservation practices and systems
that improve nutrient management.
``(3) Waiver authority.--To assist in the implementation of
the program, the Secretary may waive the applicability of the
limitation in section 1001D(b)(2) of this Act for
participating producers if the Secretary determines that the
waiver is necessary to fulfill the objectives of the program.
``SEC. 1271D. FUNDING.
``(a) Availability of Funds.--The Secretary shall use
$100,000,000 of the funds of the Commodity Credit Corporation
for each of fiscal years 2013 through 2017 to carry out the
program established under this subtitle.
``(b) Duration of Availability.--Funds made available under
subsection (a) shall remain available until expended.
``(c) Additional Funding and Acres.--
``(1) In general.--In addition to the funds made available
under subsection (a), the Secretary shall reserve 8 percent
of the funds and acres made available for a covered program
for each of fiscal years 2013 through 2017 in order to ensure
additional resources are available to carry out this program.
``(2) Unused funds and acres.--Any funds or acres reserved
under paragraph (1) for a fiscal year from a covered program
that are not obligated under this program by April 1 of that
fiscal year shall be returned for use under the covered
program.
``(d) Allocation of Funding.--Of the funds and acres made
available for the program under subsections (a) and (c), the
Secretary shall allocate--
``(1) 25 percent of the funds and acres to projects based
on a State competitive process administered by the State
conservationist, with the advice of the State technical
committee;
``(2) 40 percent of the funds and acres to projects based
on a national competitive process to be established by the
Secretary; and
``(3) 35 percent of the funds and acres to projects for the
critical conservation areas designated in section 1271F.
``(e) Limitation on Administrative Expenses.--None of the
funds made available under the program may be used to pay for
the administrative expenses of partners.
``SEC. 1271E. ADMINISTRATION.
``(a) Disclosure.--In addition to the criteria used in
evaluating applications as described in section 1271B(d)(2),
the Secretary shall make publicly available information on
projects selected through the competitive process described
in section 1271B(d)(1).
``(b) Reporting.--Not later than December 31, 2013, and for
every 2 years thereafter, the Secretary shall submit to the
Committee on Agriculture of the House of Representatives and
the Committee on Agriculture, Nutrition, and Forestry of the
Senate a report on the status of projects funded under the
program, including--
``(1) the number and types of partners and producers
participating in the partnership agreements selected;
``(2) the number of producers receiving assistance;
``(3) total funding committed to projects, including
Federal and non-Federal resources; and
``(4) a description of how the funds under section
1271C(b)(3) are being administered, including--
``(A) any oversight mechanisms that the Secretary has
implemented;
``(B) the process through which the Secretary is resolving
appeals by program participants; and
``(C) the means by which the Secretary is tracking
adherence to any applicable provisions for payment
eligibility.
``SEC. 1271F. CRITICAL CONSERVATION AREAS.
``(a) In General.--When administering the funding described
in section 1271D(d)(3), the Secretary shall select
applications for partnership agreements and producer
contracts within designated critical conservation areas.
``(b) Critical Conservation Area Designations.--
``(1) In general.--The Secretary shall designate up to 6
geographical areas as critical conservation areas based on
the degree to which an area--
``(A) includes multiple States with significant
agricultural production;
``(B) is covered by an existing regional, State,
binational, or multistate agreement or plan that has
established objectives, goals and work plans and is adopted
by a Federal, State, or regional authority;
``(C) has water quality concerns, including concerns for
reducing erosion, promoting sediment control, and addressing
nutrient management activities affecting large bodies of
water of regional, national, or international significance;
``(D) has water quantity concerns, including--
``(i) concerns for groundwater, surface water, aquifer, or
other water sources; or
``(ii) a need to promote water retention and flood
prevention; or
``(E) is subject to regulatory requirements that could
reduce the economic scope of agricultural operations within
the area.
``(2) Expiration.--Critical conservation area designations
under this section shall expire after 5 years, subject to
redesignation, except that the Secretary may withdraw
designation from an area if the Secretary finds the area no
longer meets the conditions described in paragraph (1).
``(c) Administration.--
``(1) In general.--Except as provided in paragraph (2), the
Secretary shall administer any partnership agreement or
producer contract under this section in a manner that is
consistent with the terms of the program.
``(2) Relationship to existing activity.--The Secretary
shall, to the maximum extent practicable, ensure that
eligible activities carried out in critical conservation
areas designated under this section complement and are
consistent with other Federal and State programs and water
quality and quantity strategies.''.
(b) Effective Date.--The amendment made by this section
shall take effect on October 1, 2012.
Subtitle F--Other Conservation Programs
SEC. 2501. CONSERVATION OF PRIVATE GRAZING LAND.
Section 1240M(e) of the Food Security Act of 1985 (16
U.S.C. 3839bb(e)) is amended inserting ``and $30,000,000 for
each of fiscal years 2013 through 2017'' before the period at
the end.
SEC. 2502. GRASSROOTS SOURCE WATER PROTECTION PROGRAM.
Section 1240O(b) of the Food Security Act of 1985 (16
U.S.C. 3839bb 2(b)) is amended by inserting ``and $15,000,000
for each of fiscal years 2013 through 2017'' before the
period at the end.
SEC. 2503. VOLUNTARY PUBLIC ACCESS AND HABITAT INCENTIVE
PROGRAM.
(a) Funding.--Section 1240R(f) of the Food Security Act of
1985 (16 U.S.C. 3839bb 5(f)) is amended by inserting ``and
$40,000,000 for the period of fiscal years 2013 through
2017'' before the period at the end .
(b) Report on Program Effectiveness.--Not later than 2
years after the date of enactment of this Act, the Secretary
of Agriculture shall submit to the Committee on Agriculture
of the House of Representatives and the Committee on
Agriculture, Nutrition, and Forestry of the Senate a report
[[Page S4025]]
evaluating the effectiveness of the voluntary public access
and habitat incentive program established by section 1240R of
the Food Security Act of 1985 (16 U.S.C. 3839bb 5),
including--
(1) identifying cooperating agencies;
(2) identifying the number of land holdings and total acres
enrolled by State;
(3) evaluating the extent of improved access on eligible
land, improved wildlife habitat, and related economic
benefits; and
(4) any other relevant information and data relating to the
program that would be helpful to such Committees.
(c) Effective Date.--The amendment made by this section
shall take effect on October 1, 2012.
SEC. 2504. AGRICULTURE CONSERVATION EXPERIENCED SERVICES
PROGRAM.
(a) Funding.--Section 1252 of the Food Security Act of 1985
(16 U.S.C. 3851) is amended by striking subsection (c) and
inserting the following:
``(c) Funding.--
``(1) In general.--The Secretary may carry out the ACES
program using funds made available to carry out each program
under this title.
``(2) Exclusion.--Funds made available to carry out the
conservation reserve program may not be used to carry out the
ACES program.''.
(b) Effective Date.--The amendment made by this section
shall take effect on October 1, 2012.
SEC. 2505. SMALL WATERSHED REHABILITATION PROGRAM.
Section 14(h)(2)(E) of the Watershed Protection and Flood
Prevention Act (16 U.S.C. 1012(h)(2)(E)) is amended by
striking ``2012'' and inserting ``2017''.
SEC. 2506. TERMINAL LAKES ASSISTANCE.
Section 2507 of the Food, Security, and Rural Investment
Act of 2002 (43 U.S.C. 2211 note; Public Law 107 171) is
amended to read as follows:
``SEC. 2507. TERMINAL LAKES ASSISTANCE.
``(a) Definitions.--In this section:
``(1) Eligible land.--The term `eligible land' means
privately owned agricultural land (including land in which a
State has a property interest as a result of state water
law)--
``(A) that a landowner voluntarily agrees to sell to a
State; and
``(B) which--
``(i)(I) is ineligible for enrollment as a wetland easement
established under the Agricultural Conservation Easement
Program under subtitle H of the Food Security Act of 1985;
``(II) is flooded to--
``(aa) an average depth of at least 6.5 feet; or
``(bb) a level below which the State determines the
management of the water level is beyond the control of the
State or landowner; or
``(III) is inaccessible for agricultural use due to the
flooding of adjoining property (such as islands of
agricultural land created by flooding);
``(ii) is located within a watershed with water rights
available for lease or purchase; and
``(iii) has been used during at least 5 of the immediately
preceding 30 years--
``(I) to produce crops or hay; or
``(II) as livestock pasture or grazing.
``(2) Program.--The term `program' means the voluntary land
purchase program established under this section.
``(3) Terminal lake.--The term `terminal lake' means a lake
and its associated riparian and watershed resources that is--
``(A) considered flooded because there is no natural outlet
for water accumulating in the lake or the associated riparian
area such that the watershed and surrounding land is
consistently flooded; or
``(B) considered terminal because it has no natural outlet
and is at risk due to a history of consistent Federal
assistance to address critical resource conditions, including
insufficient water available to meet the needs of the lake,
general uses, and water rights.
``(b) Assistance.--The Secretary shall--
``(1) provide grants under subsection (c) for the purchase
of eligible land impacted by a terminal lake described in
subsection (a)(3)(A); and
``(2) provide funds to the Secretary of the Interior
pursuant to subsection (e)(2) with assistance in accordance
with subsection (d) for terminal lakes described in
subsection (a)(3)(B).
``(c) Land Purchase Grants.--
``(1) In general.--Using funds provided under subsection
(e)(1), the Secretary shall make available land purchase
grants to States for the purchase of eligible land in
accordance with this subsection.
``(2) Implementation.--
``(A) Amount.--A land purchase grant shall be in an amount
not to exceed the lesser of--
``(i) 50 percent of the total purchase price per acre of
the eligible land; or
``(ii)(I) in the case of eligible land that was used to
produce crops or hay, $400 per acre; and
``(II) in the case of eligible land that was pasture or
grazing land, $200 per acre.
``(B) Determination of purchase price.--A State purchasing
eligible land with a land purchase grant shall ensure, to the
maximum extent practicable, that the purchase price of such
land reflects the value, if any, of other encumbrances on the
eligible land to be purchased, including easements and
mineral rights.
``(C) Cost-share required.--To be eligible to receive a
land purchase grant, a State shall provide matching non-
Federal funds in an amount equal to 50 percent of the amount
described in subparagraph (A), including additional non-
Federal funds.
``(D) Conditions.--To receive a land purchase grant, a
State shall agree--
``(i) to ensure that any eligible land purchased is--
``(I) conveyed in fee simple to the State; and
``(II) free from mortgages or other liens at the time title
is transferred;
``(ii) to maintain ownership of the eligible land in
perpetuity;
``(iii) to pay (from funds other than grant dollars
awarded) any costs associated with the purchase of eligible
land under this section, including surveys and legal fees;
and
``(iv) to keep eligible land in a conserving use, as
defined by the Secretary.
``(E) Loss of federal benefits.--Eligible land purchased
with a grant under this section shall lose eligibility for
any benefits under other Federal programs, including--
``(i) benefits under title XII of the Food Security Act of
1985 (16 U.S.C. 3801 et seq.);
``(ii) benefits under the Federal Crop Insurance Act (7
U.S.C. 1501 et seq.); and
``(iii) covered benefits described in section 1001D(b) of
the Food Security Act of 1985 (7 U.S.C. 1308 3a).
``(F) Prohibition.--Any Federal rights or benefits
associated with eligible land prior to purchase by a State
may not be transferred to any other land or person in
anticipation of or as a result of such purchase.
``(d) Water Assistance.--
``(1) In general.--The Secretary of the Interior, acting
through the Commissioner of Reclamation, may use the funds
described in subsection (e)(2) to administer and provide
financial assistance to carry out this subsection to provide
water and assistance to a terminal lake described in
subsection (a)(3)(B) through willing sellers or willing
participants only--
``(A) to lease water;
``(B) to purchase land, water appurtenant to the land, and
related interests; and
``(C) to carry out research, support and conservation
activities for associated fish, wildlife, plant, and habitat
resources.''
``(2) Exclusions.--The Secretary of the Interior may not
use this subsection to deliver assistance to the Great Salt
Lake in Utah, lakes that are considered dry lakes, or other
lakes that do not meet the purposes of this section, as
determined by the Secretary of the Interior.
``(3) Transitional provision.--
``(A) In general.--Notwithstanding any other provision of
this section, any funds made available before the date of
enactment of the Agriculture Reform, Food, and Jobs Act of
2012 under a provision of law described in subparagraph (B)
shall remain available using the provisions of law (including
regulations) in effect on the day before the date of
enactment of that Act.
``(B) Described laws.--The provisions of law described in
this section are--
``(i) section 2507 of the Farm Security and Rural
Investment Act of 2002 (43 U.S.C. 2211 note; Public Law 107
171) (as in effect on the day before the date of enactment of
the Agriculture Reform, Food, and Jobs Act of 2012);
``(ii) section 207 of the Energy and Water Development
Appropriations Act, 2003 (Public Law 108 7; 117 Stat. 146);
``(iii) section 208 of the Energy and Water Development
Appropriations Act, 2006 (Public Law 109 103; 119 Stat. 2268,
123 Stat. 2856); and
``(iv) section 208 of the Energy and Water Development and
Related Agencies Appropriations Act, 2010 (Public Law 111 85;
123 Stat. 2858, 123 Stat. 2967, 125 Stat. 867).
``(e) Funding.--
``(1) Authorization of appropriations.--There is authorized
to be appropriated to the Secretary to carry out subsection
(c) $25,000,000, to remain available until expended.
``(2) Commodity credit corporation.--As soon as practicable
after the date of enactment of the Agriculture Reform, Food,
and Jobs Act of 2012, the Secretary shall transfer to the
Bureau of Reclamation Water and Related Resources Account
$150,000,000 from the funds of the Commodity Credit
Corporation to carry out subsection (d), to remain available
until expended.''.
Subtitle G--Funding and Administration
SEC. 2601. FUNDING.
(a) In General.--Section 1241 of the Food Security Act of
1985 (16 U.S.C. 3841) is amended by striking subsection (a)
and inserting the following:
``(a) Annual Funding.--For each of fiscal years 2013
through 2017, the Secretary shall use the funds, facilities,
and authorities of the Commodity Credit Corporation to carry
out the following programs under this title (including the
provision of technical assistance):
``(1) The conservation reserve program under subchapter B
of chapter 1 of subtitle D, including, to the maximum extent
practicable--
``(A) $10,000,000 for the period of fiscal years 2013
through 2017 to provide payments under paragraph (3) of
section 1234(b) in connection with thinning activities
conducted on land described in subparagraph (B)(iii) of that
paragraph; and
``(B) $50,000,000 for the period of fiscal years 2013
through 2017 to carry out section 1235(f) to facilitate the
transfer of land subject to contracts from retired or
retiring owners and operators to beginning farmers or
ranchers and socially disadvantaged farmers or ranchers.
[[Page S4026]]
``(2) The Agricultural Conservation Easement Program under
subtitle H using to the maximum extent practicable--
``(A) $223,000,000 for fiscal year 2013;
``(B) $702,000,000 for fiscal year 2014;
``(C) $500,000,000 for fiscal year 2015;
``(D) $525,000,000 for fiscal year 2016; and
``(E) $250,000,000 for fiscal year 2017.
``(3) The conservation security program under subchapter A
of chapter 2 of subtitle D, using such sums as are necessary
to administer contracts entered into before September 30,
2008.
``(4) The conservation stewardship program under subchapter
B of chapter 2 of subtitle D.
``(5) The environmental quality incentives program under
chapter 4 of subtitle D, using, to the maximum extent
practicable--
``(A) $1,455,000,000 for fiscal year 2013;
``(B) $1,645,000,000 for fiscal year 2014; and
``(C) $1,650,000,000 for each of fiscal years 2015 through
2017.''.
(b) Guaranteed Availability of Funds.--Section 1241 of the
Food Security Act of 1985 (16 U.S.C. 3841) is amended--
(1) by redesignating subsections (b) through (h) as
subsections (c) through (i), respectively; and
(2) by inserting after subsection (a) the following:
``(b) Availability of Funds.--Amounts made available by
subsection (a) shall be used by the Secretary to carry out
the programs specified in such subsection for fiscal years
2013 through 2017 and shall remain available until expended.
Amounts made available for the programs specified in such
subsection during a fiscal year through modifications,
cancellations, terminations, and other related administrative
actions and not obligated in that fiscal year shall remain
available for obligation during subsequent fiscal years, but
shall reduce the amount of additional funds made available in
the subsequent fiscal year by an amount equal to the amount
remaining unobligated.''.
(c) Effective Date.--The amendments made by this section
shall take effect on October 1, 2012.
SEC. 2602. TECHNICAL ASSISTANCE.
Section 1241 of the Food Security Act of 1985 (16 U.S.C.
3841) is amended by striking subsection (c) (as redesignated
by section 2601(b)(1)) and inserting the following:
``(c) Technical Assistance.--
``(1) Availability of funds.--Commodity Credit Corporation
funds made available for a fiscal year for each of the
programs specified in subsection (a)--
``(A) shall be available for the provision of technical
assistance for the programs for which funds are made
available as necessary to implement the programs effectively;
and
``(B) shall not be available for the provision of technical
assistance for conservation programs specified in subsection
(a) other than the program for which the funds were made
available.
``(2) Report.--Not later than December 31, 2012, the
Secretary shall submit (and update as necessary in subsequent
years) to the Committee on Agriculture of the House of
Representatives and the Committee on Agriculture, Nutrition,
and Forestry of the Senate a report--
``(A) detailing the amount of technical assistance funds
requested and apportioned in each program specified in
subsection (a) during the preceding fiscal year; and
``(B) any other data relating to this provision that would
be helpful to such Committees.''.
SEC. 2603. REGIONAL EQUITY.
Section 1241 of the Food Security Act of 1985 (16 U.S.C.
3841) is amended by striking subsection (e) (as redesignated
by section 2601(b)(1)) and inserting the following:
``(e) Regional Equity.--
``(1) Equitable distribution.--When determining funding
allocations each fiscal year, the Secretary shall, after
considering available funding and program demand in each
State, provide a distribution of funds for conservation
programs under subtitle D (excluding the conservation reserve
program under subchapter B of chapter 1), subtitle H
(excluding wetland easements under section 1265C), and
subtitle I to ensure equitable program participation
proportional to historical funding allocations and usage by
all States.
``(2) Minimum percentage.--In determining the specific
funding allocations under paragraph (1), the Secretary
shall--
``(A) ensure that during the first quarter of each fiscal
year each State has the opportunity to establish that the
State can use an aggregate allocation amount of at least 0.6
percent of the funds made available for those conservation
programs; and
``(B) for each State that can so establish, provide an
aggregate amount of at least 0.6 percent of the funds made
available for those conservation programs.''.
SEC. 2604. RESERVATION OF FUNDS TO PROVIDE ASSISTANCE TO
CERTAIN FARMERS OR RANCHERS FOR CONSERVATION
ACCESS.
Subsection (h) of section 1241 of the Food Security Act of
1985 (16 U.S.C. 3841) (as redesignated by section 2601(b)(1))
is amended--
(1) in paragraph (1) by striking ``2012'' and inserting
``2017''; and
(2) by adding at the end the following:
``(4) Preference.--In providing assistance under paragraph
(1), the Secretary shall give preference to a veteran farmer
or rancher (as defined in section 2501(e) of the Food,
Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C.
2279(e))) that qualifies under subparagraph (A) or (B) of
paragraph (1).''.
SEC. 2605. ANNUAL REPORT ON PROGRAM ENROLLMENTS AND
ASSISTANCE.
Subsection (i) of section 1241 of the Food Security Act of
1985 (16 U.S.C. 3841) (as redesignated by section 2601(b)(1))
is amended--
(1) in paragraph (1), by striking ``wetlands reserve
program'' and inserting ``agricultural conservation easement
program'';
(2) by striking paragraphs (2) and (3) and redesignating
paragraphs (4), (5), and (6) as paragraphs (2), (3), and (4),
respectively;
(3) in paragraph (3) (as so redesignated)--
(A) by striking ``agricultural water enhancement program''
and inserting ``regional conservation partnership program'';
and
(B) by striking ``section 1240I(g)'' and inserting
``section 1271C(c)(3)''; and
(4) by adding at the end the following:
``(5) Payments made under the conservation stewardship
program.
``(6) Waivers granted by the Secretary under section
1265B(b)(2)(C).''.
SEC. 2606. ADMINISTRATIVE REQUIREMENTS FOR CONSERVATION
PROGRAMS.
Section 1244 of the Food Security Act of 1985 (16 U.S.C.
3844) is amended--
(1) in subsection (a)(2), by adding at the end the
following:
``(E) Veteran farmers or ranchers (as defined in section
2501(e) of the Food, Agriculture, Conservation, and Trade Act
of 1990 (7 U.S.C. 2279(e))).'';
(2) in subsection (d), by inserting ``, H, and I'' before
the period at the end;
(3) in subsection (f)--
(A) in paragraph (1)(B), by striking ``country'' and
inserting ``county''; and
(B) in paragraph (3), by striking ``subsection (c)(2)(B) or
(f)(4)'' and inserting ``subsection (c)(2)(A)(ii) or
(f)(2)'';
(4) by striking subsection (i) and inserting the following:
``(i) Conservation Application Process.--
``(1) Initial application.--
``(A) In general.--Not later than 1 year after the date of
enactment of this subsection, the Secretary shall establish a
single, simplified application for eligible entities to use
in initially requesting assistance under any conservation
program administered by the Secretary (referred to in this
subsection as the `initial application').
``(B) Requirements.--To the maximum extent practicable, the
Secretary shall ensure that--
``(i) a conservation program applicant is not required to
provide information that is duplicative of information or
resources already available to the Secretary for that
applicant and the specific operation of the applicant; and
``(ii) the initial application process is streamlined to
minimize complexity and redundancy.
``(2) Review of application process.--
``(A) In general.--Not later than 1 year after the date of
enactment of this subsection, the Secretary shall review the
application process for each conservation program
administered by the Secretary, including the forms and
processes used to receive assistance requests from eligible
program participants.
``(B) Requirements.--In carrying out the review, the
Secretary shall determine what information the participant is
required to submit during the application process,
including--
``(i) identification information for the applicant;
``(ii) identification and location information for the land
parcel or tract of concern;
``(iii) a general statement of the need or resource concern
of the applicant for the land parcel or tract; and
``(iv) the minimum amount of other information the
Secretary considers to be essential for the applicant to
provide personally.
``(3) Revision and streamline.--
``(A) In general.--Not later than 1 year after the date of
enactment of this subsection, the Secretary shall carry out a
revision of the application forms and processes for each
conservation program administered by the Secretary to enable
use of information technology to incorporate appropriate data
and information concerning the conservation needs and
solutions appropriate for the land area identified by the
applicant.
``(B) Goal.--The goal of the revision shall be to
streamline the application process to minimize the burden
placed on applicants.
``(4) Conservation program application.--
``(A) In general.--Once the needs of an applicant have been
adequately assessed by the Secretary, or a third party
provider under section 1242, based on the initial
application, in order to determine the 1 or more programs
under this title that best match the needs of the applicant,
with the approval of the applicant, the Secretary may convert
the initial application into the specific application for
assistance for the relevant conservation program.
``(B) Secretarial burden.--To the maximum extent
practicable, the Secretary shall--
``(i) complete the specific application for conservation
program assistance for each applicant; and
``(ii) request only that specific further information from
the applicant that is not already available to the Secretary.
``(5) Implementation and notification.--Not later than 1
year after the date of enactment of this subsection, the
Secretary shall submit to the Committee on Agriculture of the
House of Representatives and the Committee on Agriculture,
Nutrition, and Forestry of the Senate written notification
that the Secretary has fulfilled the requirements of this
subsection.''; and
[[Page S4027]]
(5) by adding at the end the following:
``(j) Improved Administrative Efficiency and
Effectiveness.--In administrating a conservation program
under this title, the Secretary shall, to the maximum extent
practicable--
``(1) seek to reduce administrative burdens and costs to
producers by streamlining conservation planning and program
resources; and
``(2) take advantage of new technologies to enhance
efficiency and effectiveness.
``(k) Relation to Other Payments.--Any payment received by
an owner or operator under this title, including an easement
payment or rental payment, shall be in addition to, and not
affect, the total amount of payments that the owner or
operator is otherwise eligible to receive under any of the
following:
``(1) This Act.
``(2) The Agricultural Act of 1949 (7 U.S.C. 1421 et seq.).
``(3) The Agriculture Reform, Food, and Jobs Act of 2012.
``(4) Any law that succeeds a law specified in paragraph
(1), (2), or (3).
``(l) Funding for Indian Tribes.--In carrying out the
conservation stewardship program under subchapter B of
chapter 2 of subtitle D and the environmental quality
incentives program under chapter 4 of subtitle D, the
Secretary may enter into alternative funding arrangements
with Indian tribes if the Secretary determines that the goals
and objectives of the programs will be met by such
arrangements, and that statutory limitations regarding
contracts with individual producers will not be exceeded by
any Tribal member.''.
SEC. 2607. RULEMAKING AUTHORITY.
Subtitle E of title XII of the Food Security Act of 1985
(16 U.S.C. 3841 et seq.) is amended by adding at the end the
following:
``SEC. 1246. REGULATIONS.
``(a) In General.--The Secretary shall promulgate such
regulations as are necessary to implement programs under this
title, including such regulations as the Secretary determines
to be necessary to ensure a fair and reasonable application
of the limitations established under section 1244(f).
``(b) Rulemaking Procedure.--The promulgation of
regulations and administration of programs under this title--
``(1) shall be carried out without regard to--
``(A) the Statement of Policy of the Secretary effective
July 24, 1971 (36 Fed. Reg. 13804), relating to notices of
proposed rulemaking and public participation in rulemaking;
and
``(B) chapter 35 of title 44, United States Code (commonly
known as the Paperwork Reduction Act); and
``(2) shall be made as an interim rule effective on
publication with an opportunity for notice and comment.
``(c) Congressional Review of Agency Rulemaking.--In
promulgating regulations under this section, the Secretary
shall use the authority provided under section 808 of title
5, United States Code.''.
SEC. 2608. STANDARDS FOR STATE TECHNICAL COMMITTEES.
Section 1261(b) of the Food Security Act of 1985 (16 U.S.C.
3861(b)) is amended by striking ``Not later than 180 days
after the date of enactment of the Food, Conservation, and
Energy Act of 2008, the Secretary shall develop'' and
inserting ``The Secretary shall review and update as
necessary''.
Subtitle H--Repeal of Superseded Program Authorities and Transitional
Provisions
SEC. 2701. COMPREHENSIVE CONSERVATION ENHANCEMENT PROGRAM.
Section 1230 of the Food Security Act of 1985 (16 U.S.C.
3830) is repealed.
SEC. 2702. EMERGENCY FORESTRY CONSERVATION RESERVE PROGRAM.
(a) Repeal.--Section 1231A of the Food Security Act of 1985
(16 U.S.C. 3831a) is repealed.
(b) Transitional Provisions.--
(1) Effect on existing contracts.--The amendment made by
this section shall not affect the validity or terms of any
contract entered into by the Secretary of Agriculture under
section 1231A of the Food Security Act of 1985 (16 U.S.C.
3831a) before October 1, 2012, or any payments required to be
made in connection with the contract.
(2) Funding.--The Secretary may use funds made available to
carry out the conservation reserve program under subchapter B
of chapter 1 of subtitle D of title XII of the Food Security
Act of 1985 (16 U.S.C. 3831 et seq.) to continue to carry out
contracts referred to in paragraph (1) using the provisions
of law and regulation applicable to such contracts as in
existence on September 30, 2012.
(c) Effective Date.--The amendment made by this section
shall take effect on October 1, 2012.
SEC. 2703. WETLANDS RESERVE PROGRAM.
(a) Repeal.--Subchapter C of chapter 1 of subtitle D of
title XII of the Food Security Act of 1985 (16 U.S.C. 3837 et
seq.) is repealed.
(b) Transitional Provisions.--
(1) Effect on existing contracts and easements.--The
amendment made by this section shall not affect the validity
or terms of any contract or easement entered into by the
Secretary of Agriculture under subchapter C of chapter 1 of
subtitle D of title XII of the Food Security Act of 1985 (16
U.S.C. 3837 et seq.) before October 1, 2012, or any payments
required to be made in connection with the contract or
easement.
(2) Funding.--
(A) Use of prior year funds.--Notwithstanding the repeal of
subchapter C of chapter 1 of subtitle D of title XII of the
Food Security Act of 1985 (16 U.S.C. 3837 et seq.), any funds
made available from the Commodity Credit Corporation to carry
out the wetlands reserve program under that subchapter for
fiscal years 2009 through 2012 shall be made available to
carry out contracts or easements referred to in paragraph (1)
that were entered into prior to October 1, 2012 (including
the provision of technical assistance), provided that no such
contract or easement is modified so as to increase the amount
of the payment received.
(B) Other.--The Secretary may use funds made available to
carry out the agricultural conservation easement program
under subtitle H of title XII of the Food Security Act of
1985, as added by section 2301 of this Act, to continue to
carry out contracts and easements referred to in paragraph
(1) using the provisions of law and regulation applicable to
such contracts and easements as in existence on September 30,
2012.
(c) Effective Date.--The amendment made by this section
shall take effect on October 1, 2012.
SEC. 2704. FARMLAND PROTECTION PROGRAM AND FARM VIABILITY
PROGRAM.
(a) Repeal.--Subchapter C of chapter 2 of subtitle D of
title XII of the Food Security Act of 1985 (16 U.S.C. 3838h
et seq.) is repealed.
(b) Transitional Provisions.--
(1) Effect on existing agreements and easements.--The
amendment made by this section shall not affect the validity
or terms of any agreement or easement entered into by the
Secretary of Agriculture under subchapter C of chapter 2 of
subtitle D of title XII of the Food Security Act of 1985 (16
U.S.C. 3838h et seq.) before October 1, 2012, or any payments
required to be made in connection with the agreement or
easement.
(2) Funding.--
(A) Use of prior year funds.--Notwithstanding the repeal of
subchapter C of chapter 2 of subtitle D of title XII of the
Food Security Act of 1985 (16 U.S.C. 3838h et seq.), any
funds made available from the Commodity Credit Corporation to
carry out the farmland protection program under that
subchapter for fiscal years 2009 through 2012 shall be made
available to carry out agreements and easements referred to
in paragraph (1) that were entered into prior to October 1,
2012 (including the provision of technical assistance).
(B) Other.--On exhaustion of funds made available under
subparagraph (A), the Secretary may use funds made available
to carry out the agricultural conservation easement program
under subtitle H of title XII of the Food Security Act of
1985, as added by section 2301 of this Act, to continue to
carry out agreements and easements referred to in paragraph
(1) using the provisions of law and regulation applicable to
such agreements and easement as in existence on September 30,
2012.
(c) Effective Date.--The amendment made by this section
shall take effect on October 1, 2012.
SEC. 2705. GRASSLAND RESERVE PROGRAM.
(a) Repeal.--Subchapter D of chapter 2 of subtitle D of
title XII of the Food Security Act of 1985 (16 U.S.C. 3838n
et seq.) is repealed.
(b) Transitional Provisions.--
(1) Effect on existing contracts, agreements, and
easements.--The amendment made by this section shall not
affect the validity or terms of any contract, agreement, or
easement entered into by the Secretary of Agriculture under
subchapter D of chapter 2 of subtitle D of title XII of the
Food Security Act of 1985 (16 U.S.C. 3838n et seq.) before
October 1, 2012, or any payments required to be made in
connection with the contract, agreement, or easement.
(2) Funding.--
(A) Use of prior year funds.--Notwithstanding the repeal of
subchapter D of chapter 2 of subtitle D of title XII of the
Food Security Act of 1985 (16 U.S.C. 3838n et seq.), any
funds made available from the Commodity Credit Corporation to
carry out the grassland reserve program under that subchapter
for fiscal years 2009 through 2012 shall be made available to
carry out contracts, agreements, or easements referred to in
paragraph (1) that were entered into prior to October 1, 2012
(including the provision of technical assistance), provided
that no such contract, agreement, or easement is modified so
as to increase the amount of the payment received.
(B) Other.--The Secretary may use funds made available to
carry out the agricultural conservation easement program
under subtitle H of title XII of the Food Security Act of
1985, as added by section 2301 of this Act, to continue to
carry out contracts, agreements, and easements referred to in
paragraph (1) using the provisions of law and regulation
applicable to such contracts, agreements, and easements as in
existence on September 30, 2012.
(c) Effective Date.--The amendment made by this section
shall take effect on October 1, 2012.
SEC. 2706. AGRICULTURAL WATER ENHANCEMENT PROGRAM.
(a) Repeal.--Section 1240I of the Food Security Act of 1985
(16 U.S.C. 3839aa 9) is repealed.
(b) Transitional Provisions.--
(1) Effect on existing contracts and agreements.--The
amendment made by this section shall not affect the validity
or terms of any contract or agreement entered into by
[[Page S4028]]
the Secretary of Agriculture under section 1240I of the Food
Security Act of 1985 (16 U.S.C. 3839aa 9) before October 1,
2012, or any payments required to be made in connection with
the contract or agreement.
(2) Funding.--
(A) Use of prior year funds.--Notwithstanding the repeal of
section 1240I of the Food Security Act of 1985 (16 U.S.C.
3839aa 9), any funds made available from the Commodity Credit
Corporation to carry out the agricultural water enhancement
program under that section for fiscal years 2009 through 2012
shall be made available to carry out contracts and agreements
referred to in paragraph (1) that were entered into prior to
October 1, 2012 (including the provision of technical
assistance).
(B) Other.--On exhaustion of funds made available under
subparagraph (A), the Secretary may use funds made available
to carry out the regional conservation partnerships program
under subtitle I of title XII of the Food Security Act of
1985, as added by section 2401 of this Act, to continue to
carry out contracts and agreements referred to in paragraph
(1) using the provisions of law and regulation applicable to
such contracts and agreements as in existence on September
30, 2012.
(c) Effective Date.--The amendment made by this section
shall take effect on October 1, 2012.
SEC. 2707. WILDLIFE HABITAT INCENTIVE PROGRAM.
(a) Repeal.--Section 1240N of the Food Security Act of 1985
(16 U.S.C. 3839bb 1) is repealed.
(b) Transitional Provisions.--
(1) Effect on existing contracts.--The amendment made by
this section shall not affect the validity or terms of any
contract entered into by the Secretary of Agriculture under
section 1240N of the Food Security Act of 1985 (16 U.S.C.
3839bb 1) before October 1, 2012, or any payments required to
be made in connection with the contract.
(2) Funding.--
(A) Use of prior year funds.--Notwithstanding the repeal of
section 1240N of the Food Security Act of 1985 (16 U.S.C.
3839bb 1), any funds made available from the Commodity Credit
Corporation to carry out the wildlife habitat incentive
program under that section for fiscal years 2009 through 2012
shall be made available to carry out contracts referred to in
paragraph (1) which were entered into prior to October 1,
2012 (including the provision of technical assistance).
(B) Other.--On exhaustion of funds made available under
subparagraph (A), the Secretary may use funds made available
to carry out the environmental quality incentives program
under chapter 4 of subtitle D of title XII of the Food
Security Act of 1985 (16 U.S.C. 3839aa et seq.) to continue
to carry out contracts referred to in paragraph (1) using the
provisions of law and regulation applicable to such contracts
as in existence on September 30, 2012.
(c) Effective Date.--The amendment made by this section
shall take effect on October 1, 2012.
SEC. 2708. GREAT LAKES BASIN PROGRAM.
(a) Repeal.--Section 1240P of the Food Security Act of 1985
(16 U.S.C. 3839bb 3) is repealed.
(b) Effective Date.--The amendment made by this section
shall take effect on October 1, 2012.
SEC. 2709. CHESAPEAKE BAY WATERSHED PROGRAM.
(a) Repeal.--Section 1240Q of the Food Security Act of 1985
(16 U.S.C. 3839bb 4) is repealed.
(b) Transitional Provisions.--
(1) Effect on existing contracts, agreements, and
easements.--The amendment made by this section shall not
affect the validity or terms of any contract, agreement, or
easement entered into by the Secretary of Agriculture under
section 1240Q of the Food Security Act of 1985 (16 U.S.C.
3839bb 4) before October 1, 2012, or any payments required to
be made in connection with the contract, agreement, or
easement.
(2) Funding.--
(A) Use of prior year funds.--Notwithstanding the repeal of
section 1240Q of the Food Security Act of 1985 (16 U.S.C.
3839bb 4), any funds made available from the Commodity Credit
Corporation to carry out the Chesapeake Bay watershed program
under that section for fiscal years 2009 through 2012 shall
be made available to carry out contracts, agreements, and
easements referred to in paragraph (1) that were entered into
prior to October 1, 2012 (including the provision of
technical assistance).
(B) Other.--The Secretary may use funds made available to
carry out the regional conservation partnerships program
under subtitle I of title XII of the Food Security Act of
1985, as added by section 2401 of this Act, to continue to
carry out contracts, agreements, and easements referred to in
paragraph (1) using the provisions of law and regulation
applicable to such contracts, agreements, and easements as in
existence on September 30, 2012.
(c) Effective Date.--The amendment made by this section
shall take effect on October 1, 2012.
SEC. 2710. COOPERATIVE CONSERVATION PARTNERSHIP INITIATIVE.
(a) Repeal.--Section 1243 of the Food Security Act of 1985
(16 U.S.C. 3843) is repealed.
(b) Transitional Provisions.--
(1) Effect on existing contracts and agreements.--The
amendment made by this section shall not affect the validity
or terms of any contract or agreement entered into by the
Secretary of Agriculture under section 1243 of the Food
Security Act of 1985 (16 U.S.C. 3843) before October 1, 2012,
or any payments required to be made in connection with the
contract or agreement.
(2) Funding.--
(A) Use of prior year funds.--Notwithstanding the repeal of
section 1243 of the Food Security Act of 1985 (16 U.S.C.
3843), any funds made available from the Commodity Credit
Corporation to carry out the cooperative conservation
partnership initiative under that section for fiscal years
2009 through 2012 shall be made available to carry out
contracts and agreements referred to in paragraph (1) that
were entered into prior to October 1, 2012 (including the
provision of technical assistance).
(B) Other.--On exhaustion of funds made available under
subparagraph (A), the Secretary may use funds made available
to carry out the regional conservation partnerships program
under subtitle I of title XII of the Food Security Act of
1985, as added by section 2401 of this Act, to continue to
carry out contracts and agreements referred to in paragraph
(1) using the provisions of law and regulation applicable to
such contracts and agreements as in existence on September
30, 2012.
(c) Effective Date.--The amendment made by this section
shall take effect on October 1, 2012.
SEC. 2711. ENVIRONMENTAL EASEMENT PROGRAM.
Chapter 3 of subtitle D of title XII of the Food Security
Act of 1985 (16 U.S.C. 3839 et seq.) is repealed.
SEC. 2712. TECHNICAL AMENDMENTS.
(a) Section 1201(a) of the Food Security Act of 1985 (16
U.S.C. 3801(a)) is amended in the matter preceding paragraph
(1) by striking ``E'' and inserting ``I''.
(b) Section 1211(a) of the Food Security Act of 1985 (16
U.S.C. 3811(a)) is amended by striking ``predominate'' each
place it appears and inserting ``predominant''.
(c) Section 1242(i) of the Food Security Act of 1985(16
U.S.C. 3842(i)) is amended in the subsection heading by
striking ``speciality'' and inserting ``specialty''.
TITLE III--TRADE
Subtitle A--Food for Peace Act
SEC. 3001. SET-ASIDE FOR SUPPORT FOR ORGANIZATIONS THROUGH
WHICH NONEMERGENCY ASSISTANCE IS PROVIDED.
Effective October 1, 2012, section 202(e)(1) of the Food
for Peace Act (7 U.S.C. 1722(e)(1)) is amended--
(1) in the matter preceding subparagraph (A), by striking
``13 percent'' and inserting ``15 percent''; and
(2) in subparagraph (A), by striking ``new'' and inserting
``and enhancing''.
SEC. 3002. FOOD AID QUALITY.
Section 202(h) of the Food for Peace Act (7 U.S.C. 1722(h))
is amended--
(1) by striking paragraph (1) and inserting the following:
``(1) In general.--The Administrator shall use funds made
available for fiscal year 2013 and subsequent fiscal years to
carry out this title--
``(A) to assess the types and quality of agricultural
commodities and products donated for food aid;
``(B) to adjust products and formulations, including
potential introduction of new fortificants and products, as
necessary to cost-effectively meet nutrient needs of target
populations;
``(C) to test prototypes;
``(D) to adopt new specifications or improve existing
specifications for micronutrient fortified food aid products,
based on the latest developments in food and nutrition
science, and in coordination with other international
partners;
``(E) to develop new program guidance to facilitate
improved matching of products to purposes having nutritional
intent, in coordination with other international partners;
``(F) to develop improved guidance for implementing
partners on how to address nutritional deficiencies that
emerge among recipients for whom food assistance is the sole
source of diet in emergency programs that extend beyond 1
year, in coordination with other international partners; and
``(G) to evaluate, in appropriate settings and as
necessary, the performance and cost-effectiveness of new or
modified specialized food products and program approaches
designed to meet the nutritional needs of the most vulnerable
groups, such as pregnant and lactating mothers, and children
under the age of 5.''; and
(2) in paragraph (3), by striking ``2011'' and inserting
``2017''.
SEC. 3003. MINIMUM LEVELS OF ASSISTANCE.
Section 204(a) of the Food for Peace Act (7 U.S.C. 1724(a))
is amended--
(1) in paragraph (1), by striking ``2012'' and inserting
``2017''; and
(2) in paragraph (2), by striking ``2012'' and inserting
``2017''.
SEC. 3004. REAUTHORIZATION OF FOOD AID CONSULTATIVE GROUP.
Section 205(f) of the Food for Peace Act (7 U.S.C. 1725(f))
is amended by striking ``2012'' and inserting ``2017''.
SEC. 3005. OVERSIGHT, MONITORING, AND EVALUATION OF FOOD FOR
PEACE ACT PROGRAMS.
Section 207(f) of the Food for Peace Act (7 U.S.C.
1726a(f)) is amended--
[[Page S4029]]
(1) by striking paragraph (4) and redesignating paragraphs
(5) and (6) as paragraphs (4) and (5), respectively; and
(2) in subparagraph (A) of paragraph (5) (as so
redesignated)--
(A) by striking ``2012'' and inserting ``2017''; and
(B) by striking ``during fiscal year 2009'' and inserting
``during the period of fiscal years 2013 through 2017''.
SEC. 3006. ASSISTANCE FOR STOCKPILING AND RAPID
TRANSPORTATION, DELIVERY, AND DISTRIBUTION OF
SHELF-STABLE PREPACKAGED FOODS.
Section 208(f) of the Food for Peace Act (7 U.S.C.
1726b(f)) is amended by striking ``2012'' and inserting
``2017''.
SEC. 3007. LIMITATION ON TOTAL VOLUME OF COMMODITIES
MONETIZED.
Section 403 of the Food for Peace Act (7 U.S.C. 1733) is
amended by adding at the end the following:
``(m) Limitation on Monetization of Commodities.--
``(1) Limitation.--
``(A) In general.--Unless the Administrator grants a waiver
under paragraph (2), no commodity may be made available under
this Act unless the rate of return for the commodity (as
determined under subparagraph (B)) is at least 70 percent.
``(B) Rate of return.--For purposes of subparagraph (A),
the rate of return shall be equal to the proportion that--
``(i) the proceeds the implementing partners generate
through monetization; bears to
``(ii) the cost to the Federal Government to procure and
ship the commodities to a recipient country for monetization.
``(2) Waiver authority.--The Administrator may waive the
application of the limitation in paragraph (1) with regard to
a commodity for a recipient country if the Administrator
determines that it is necessary to achieve the purposes of
this Act in the recipient country.
``(3) Report.--Not later than 90 days after a waiver is
granted under paragraph (2), the Administrator shall prepare,
publish in the Federal Register, and submit to the Committees
on Foreign Affairs, Agriculture, and Appropriations of the
House of Representatives, and the Committees on
Appropriations, Foreign Relations, and Agriculture,
Nutrition, and Forestry of the Senate a report that--
``(A) contains the reasons for granting the waiver and the
actual rate of return for the commodity; and
``(B) includes for the commodity the costs of bagging or
further processing, ocean transportation, inland
transportation in the recipient country, storage costs, and
any other information that the Administrator determines to be
necessary.''.
SEC. 3008. FLEXIBILITY.
Section 406 of the Food for Peace Act (7 U.S.C. 1736) is
amended--
(1) by redesignating subsections (c) and (d) as subsections
(d) and (e), respectively; and
(2) by inserting after subsection (b) the following:
``(c) Flexibility.--Notwithstanding any other provision of
law and as necessary to achieve the purposes of this Act,
funds available under this Act may be used to pay the costs
of up to 20 percent of activities conducted in recipient
countries by nonprofit voluntary organizations, cooperatives,
or intergovernmental agencies or organizations.''.
SEC. 3009. PROCUREMENT, TRANSPORTATION, TESTING, AND STORAGE
OF AGRICULTURAL COMMODITIES FOR PREPOSITIONING
IN THE UNITED STATES AND FOREIGN COUNTRIES.
Section 407 of the Food for Peace Act (7 U.S.C. 1736a) is
amended--
(1) in subparagraph (c)(4)(A)--
(A) by striking ``2012'' and inserting ``2017''; and
(B) by striking ``for each such fiscal year not more than
$10,000,000 of such funds'' and inserting ``for each of
fiscal years 2001 through 2012 not more than $10,000,000 of
such funds and for each of fiscal years 2013 through 2017 not
more than $15,000,000 of such funds''; and
(2) by adding at the end the following:
``(g) Funding for Testing of Food Aid Shipments.--Funds
made available for agricultural products acquired under this
Act and section 3107 of the Farm Security and Rural
Investment Act of 2002 (7 U.S.C. 1736 o 1) may be used to pay
for the testing of those agricultural products.''.
SEC. 3010. DEADLINE FOR AGREEMENTS TO FINANCE SALES OR TO
PROVIDE OTHER ASSISTANCE.
Section 408 of the Food for Peace Act (7 U.S.C. 1736b) is
amended by striking ``2012'' and inserting ``2017''.
SEC. 3011. MINIMUM LEVEL OF NONEMERGENCY FOOD ASSISTANCE.
Section 412 of the Food for Peace Act (7 U.S.C. 1736f) is
amended by striking subsection (e) and inserting the
following:
``(e) Minimum Level of Nonemergency Food Assistance.--
``(1) In general.--Subject to paragraph (2), of the amounts
made available to carry out emergency and nonemergency food
assistance programs under title II, not less than 15 percent
nor more than 30 percent for each of fiscal years 2013
through 2017 shall be expended for nonemergency food
assistance programs under title II.
``(2) Minimum level.--The amount made available to carry
out nonemergency food assistance programs under title II
shall not be less than $275,000,000 for any fiscal year.''.
SEC. 3012. COORDINATION OF FOREIGN ASSISTANCE PROGRAMS
REPORT.
Section 413 of the Food for Peace Act (7 U.S.C. 1736(g)) is
amended--
(1) by striking ``(a) In General.--To the maximum'' and
inserting ``To the maximum''; and
(2) by striking subsection (b).
SEC. 3013. MICRONUTRIENT FORTIFICATION PROGRAMS.
(a) Elimination of Obsolete Reference to Study.--Section
415(a)(2)(B) of the Food for Peace Act (7 U.S.C. 1736g
2(a)(2)(B)) is amended by striking ``, using
recommendations'' and all that follows through ``quality
enhancements''.
(b) Extension.--Section 415(c) of the Food for Peace Act (7
U.S.C. 1736g 2(c)) is amended by striking ``2012'' and
inserting ``2017''.
SEC. 3014. JOHN OGONOWSKI AND DOUG BEREUTER FARMER-TO-FARMER
PROGRAM.
Section 501 of the Food for Peace Act (7 U.S.C. 1737) is
amended--
(1) in subsection (d)--
(A) by striking ``0.5 percent'' and inserting ``0.6
percent''; and
(B) by striking ``2012'' and inserting ``2017''; and
(2) in subsection (e)(1), by striking ``2012'' and
inserting ``2017''.
Subtitle B--Agricultural Trade Act of 1978
SEC. 3101. EXPORT CREDIT GUARANTEE PROGRAMS.
Section 211 of the Agricultural Trade Act of 1978 (7 U.S.C.
5641) is amended by striking subsection (b) and inserting the
following:
``(b) Export Credit Guarantee Programs.--The Commodity
Credit Corporation shall make available for each of fiscal
years 2013 through 2017 credit guarantees under section
202(a) in an amount equal to not more than $4,500,000,000 in
credit guarantees.''.
SEC. 3102. FUNDING FOR MARKET ACCESS PROGRAM.
Section 211(c)(1)(A) of the Agricultural Trade Act of 1978
(7 U.S.C. 5641(c)(1)(A)) is amended by striking ``2012'' and
inserting ``2017''.
SEC. 3103. FOREIGN MARKET DEVELOPMENT COOPERATOR PROGRAM.
Section 703(a) of the Agricultural Trade Act of 1978 (7
U.S.C. 5723(a)) is amended by striking ``2012'' and inserting
``2017''.
Subtitle C--Other Agricultural Trade Laws
SEC. 3201. FOOD FOR PROGRESS ACT OF 1985.
(a) Extension.--The Food for Progress Act of 1985 (7 U.S.C.
1736o) is amended--
(1) in subsection (f)(3), by striking ``2012'' and
inserting ``2017'';
(2) in subsection (g), by striking ``2012'' and inserting
``2017'';
(3) in subsection (k), by striking ``2012'' and inserting
``2017''; and
(4) in subsection (l)(1), by striking ``2012'' and
inserting ``2017''.
(b) Repeal of Completed Project.--Subsection (f) of the
Food for Progress Act of 1985 (7 U.S.C. 1736o) is amended by
striking paragraph (6).
(c) Flexibility.--The Food for Progress Act of 1985 (7
U.S.C. 1736o) is amended in subsection (l) by adding at the
end the following:
``(5) Flexibility.--Notwithstanding any other provision of
law and as necessary to achieve the purposes of this Act,
funds available under this Act may be used to pay the costs
of up to 20 percent of activities conducted in recipient
countries by nonprofit voluntary organizations, cooperatives,
or intergovernmental agencies or organizations.''.
(d) Limitation on Total Volume of Commodities Monetized.--
The Food for Progress Act of 1985 (7 U.S.C. 1736o) is amended
by adding at the end the following:
``(p) Limitation on Monetization of Commodities.--
``(1) Limitation.--
``(A) In general.--Unless the Secretary grants a waiver
under paragraph (2), no eligible commodity may be made
available under this section unless the rate of return for
the eligible commodity (as determined under subparagraph (B))
is at least 70 percent.
``(B) Rate of return.--For purposes of subparagraph (A),
the rate of return shall be equal to the proportion that--
``(i) the proceeds the implementing partners generate
through monetization; bears to
``(ii) the cost to the Federal Government to procure and
ship the eligible commodities to a recipient country for
monetization.
``(2) Waiver authority.--The Secretary may waive the
application of the limitation in paragraph (1) with regard to
an eligible commodity for a recipient country if the
Secretary determines that it is necessary to achieve the
purposes of this Act in the recipient country.
``(3) Report.--Not later than 90 days after a waiver is
granted under paragraph (2), the Secretary shall prepare,
publish in the Federal Register, and submit to the Committees
on Foreign Affairs, Agriculture, and Appropriations of the
House of Representatives, and the Committees on
Appropriations, Foreign Relations, and Agriculture,
Nutrition, and Forestry of the Senate a report that--
``(A) contains the reasons for granting the waiver and the
actual rate of return for the eligible commodity; and
``(B) includes for the commodity the costs of bagging or
further processing, ocean transportation, inland
transportation in the recipient country, storage costs, and
any other information that the Secretary determines to be
necessary.''.
SEC. 3202. BILL EMERSON HUMANITARIAN TRUST.
Section 302 of the Bill Emerson Humanitarian Trust Act (7
U.S.C. 1736f 1) is amended--
[[Page S4030]]
(1) in subsection (b)(2)(B)(i), by striking ``2012'' both
places it appears and inserting ``2017''; and
(2) in subsection (h), by striking ``2012'' both places it
appears and inserting ``2017''.
SEC. 3203. PROMOTION OF AGRICULTURAL EXPORTS TO EMERGING
MARKETS.
(a) Direct Credits or Export Credit Guarantees.--Section
1542(a) of the Food, Agriculture, Conservation, and Trade Act
of 1990 (Public Law 101 624; 7 U.S.C. 5622 note) is amended
by striking ``2012'' and inserting ``2017''.
(b) Development of Agricultural Systems.--Section
1542(d)(1)(A)(i) of the Food, Agriculture, Conservation, and
Trade Act of 1990 (Public Law 101 624; 7 U.S.C. 5622 note) is
amended by striking ``2012'' and inserting ``2017''.
SEC. 3204. MCGOVERN-DOLE INTERNATIONAL FOOD FOR EDUCATION AND
CHILD NUTRITION PROGRAM.
(a) Reauthorization.--Section 3107(l)(2) of the Farm
Security and Rural Investment Act of 2002 (7 U.S.C. 1736o
1(l)(2)) is amended by striking ``2012'' and inserting
``2017''.
(b) Technical Correction.--Section 3107(d) of the Farm
Security and Rural Investment Act of 2002 (7 U.S.C. 1736o
1(d)) is amended by striking ``to'' in the matter preceding
paragraph (1).
SEC. 3205. TECHNICAL ASSISTANCE FOR SPECIALTY CROPS.
(a) Purpose.--Section 3205(b) of the Farm Security and
Rural Investment Act of 2002 (7 U.S.C. 5680(b)) is amended by
striking ``related barriers to trade'' and inserting
``technical barriers to trade''.
(b) Funding.--Section 3205(e)(2) of the Farm Security and
Rural Investment Act of 2002 (7 U.S.C. 5680(e)(2)) is
amended--
(1) by inserting ``and'' at the end of subparagraph (C);
and
(2) by striking subparagraphs (D) and (E) and inserting the
following new subparagraph:
``(D) $9,000,000 for each of fiscal years 2011 through
2017.''.
SEC. 3206. GLOBAL CROP DIVERSITY TRUST.
Section 3202(c) of the Food, Conservation, and Energy Act
of 2008 (Public Law 110 246; 22 U.S.C. 2220a note) is amended
by striking ``2008 through 2012'' and inserting ``2013
through 2017''.
SEC. 3207. LOCAL AND REGIONAL FOOD AID PROCUREMENT PROJECTS.
Section 3206 of the Food, Conservation, and Energy Act of
2008 (7 U.S.C. 1726c) is amended--
(1) in subsection (b)--
(A) by striking ``(b) Study; Field-based Projects.--'' and
all that follows through ``(2) Field-based projects.--'' and
inserting the following:
``(b) Field-based Projects.--'';
(B) by redesignating subparagraphs (A) and (B) as
paragraphs (1) and (2), respectively, and indenting
appropriately;
(C) in paragraph (1) (as so redesignated), by striking
``subparagraph (B)'' and inserting ``paragraph (2)''; and
(D) in paragraph (2) (as so redesignated), by striking
``subparagraph (A)'' and inserting ``paragraph (1)'';
(2) in subsection (c)(1), by striking ``subsection (b)(2)''
and inserting ``subsection (b)'';
(3) by striking subsections (d), (f), and (g);
(4) by redesignating subsection (e) as subsection (d);
(5) in subsection (d) (as so redesignated)--
(A) in paragraph (2)--
(i) by striking subparagraph (B); and
(ii) in subparagraph (A)--
(I) by striking ``(A) Application.--'' and all that follows
through ``To be eligible'' in clause (i) and inserting the
following:
``(A) In general.--To be eligible'';
(II) by redesignating clause (ii) as subparagraph (B) and
indenting appropriately; and
(III) in subparagraph (B) (as so redesignated), by striking
``clause (i)'' and inserting ``subparagraph (A)''; and
(B) by striking paragraph (4); and
(6) by adding at the end the following:
``(e) Funding.--
``(1) Authorization of appropriations.--There is authorized
to be appropriated to carry out this section $40,000,000 for
each of fiscal years 2013 through 2017.
``(2) Preference.--In carrying out this section, the
Secretary may give a preference to eligible organizations
that have, or are working toward, projects under the
McGovern-Dole International Food for Education and Child
Nutrition Program established under section 3107 of the Farm
Security and Rural Investment Act of 2002 (7 U.S.C. 1736o-1).
``(3) Reporting.--Each year, the Secretary shall submit to
the appropriate committees of Congress a report that
describes the use of funds under this section, including--
``(A) the impact of procurements and projects on--
``(i) local and regional agricultural producers; and
``(ii) markets and consumers, including low-income
consumers; and
``(B) implementation time frames and costs.''.
SEC. 3208. DONALD PAYNE HORN OF AFRICA FOOD RESILIENCE
PROGRAM.
(a) Definitions.--In this section:
(1) Administrator.--The term ``Administrator'' means the
Administrator of the Agency for International Development.
(2) Appropriate committees of congress.--The term
``appropriate committees of Congress'' means--
(A) the Committee on Agriculture, Nutrition, and Forestry
of the Senate;
(B) the Committee on Agriculture of the House of
Representatives;
(C) the Committee on Foreign Relations of the Senate; and
(D) the Committee on Foreign Affairs of the House of
Representatives.
(3) Eligible organization.--The term ``eligible
organization'' means an organization that is--
(A) a private voluntary organization or cooperative that
is, to the extent practicable, registered with the
Administrator; or
(B) an intergovernmental organization, such as the World
Food Program.
(4) Horn of africa.--The term ``Horn of Africa'' means the
countries of--
(A) Ethiopia;
(B) Somalia;
(C) Kenya;
(D) Djibouti;
(E) Eritrea;
(F) South Sudan;
(G) Uganda; and
(H) such other countries as the Administrator determines to
be appropriate after providing notification to the
appropriate committees of Congress.
(5) Resilience.--The term ``resilience'' means--
(A) the capacity to mitigate the negative impacts of crises
(including natural disasters, conflicts, and economic shocks)
in order to reduce loss of life and depletion of productive
assets;
(B) the capacity to respond effectively to crises, ensuring
basic needs are met in a way that is integrated with long-
term development efforts; and
(C) the capacity to recover and rebuild after crises so
that future shocks can be absorbed with less need for ongoing
external assistance.
(b) Purpose.--The purpose of this section is to establish a
pilot program to effectively integrate all United States-
funded emergency and long-term development activities that
aim to improve food security in the Horn of Africa, building
resilience so as--
(1) to reduce the impacts of future crises;
(2) to enhance local capacity for emergency response;
(3) to enhance sustainability of long-term development
programs targeting poor and vulnerable households; and
(4) to reduce the need for repeated costly emergency
operations.
(c) Study.--
(1) In general.--Not later than 30 days after the date of
enactment of this Act, the Administrator shall initiate a
study of prior programs to support resilience in the Horn of
Africa conducted by--
(A) other donor countries;
(B) private voluntary organizations;
(C) the World Food Program of the United Nations; and
(D) multilateral institutions, including the World Bank.
(2) Requirements.--The study shall--
(A) include all programs implemented through the Agency for
International Development, the Department of Agriculture, the
Department of Treasury, the Millennium Challenge Corporation,
the Peace Corps, and other relevant Federal agencies;
(B) evaluate how well the programs described in
subparagraph (A) work together to complement each other and
leverage impacts across programs;
(C) include recommendations for how full integration of
efforts can be achieved; and
(D) evaluate the degree to which country-led development
plans support programs that increase resilience, including
review of the investments by each country in nutrition and
safety nets.
(3) Report.--Not later than 180 days after the date of
enactment of this Act, the Administrator shall submit to the
appropriate committees of Congress a report containing the
results of the study.
(d) Field-based Project Grants or Cooperative Agreements.--
(1) In general.--The Administrator shall--
(A) provide grants to, or enter into cooperative agreements
with, eligible organizations to carry out field-based
projects that build resilience in the Horn of Africa in
accordance with this section; and
(B) develop a project approval process to ensure full
integration of efforts.
(2) Requirements of eligible organizations.--
(A) Application.--To be eligible to receive a grant from,
or enter into a cooperative agreement with, the Administrator
under this subsection, an eligible organization shall submit
to the Administrator an application by such date, in such
manner, and containing such information as the Administrator
may require.
(B) Completion requirement.--To be eligible to receive a
grant from, or enter into a cooperative agreement with, the
Administrator under this subsection, an eligible organization
shall agree--
(i) to collect, not later than September 30, 2016, data
containing the information required under subsection (f)(2)
relating to the field-based project funded through the grant
or cooperative agreement; and
(ii) to provide to the Administrator the data collected
under clause (i).
(3) Requirements of administrator.--
(A) Project diversity.--
(i) In general.--Subject to clause (ii) and subparagraph
(B), in selecting proposals for
[[Page S4031]]
field-based projects to fund under this section, the
Administrator shall select a diversity of projects, including
projects located in--
(I) areas most prone to repeated crises;
(II) areas with effective existing resilience programs that
can be scaled; and
(III) areas in all countries of the Horn of Africa.
(ii) Priority.--In selecting proposals for field-based
projects under clause (i), the Administrator shall ensure
that the selected proposals are for field-based projects
that--
(I) effectively integrate emergency and long-term
development programs to improve sustainability;
(II) demonstrate the potential to reduce the need for
future emergency assistance; and
(III) build targeted productive safety nets, in
coordination with host country governments, through food for
work, cash for work, and other proven program methodologies.
(B) Availability.--The Administrator shall not award a
grant or cooperative agreement or approve a field-based
project under this subsection until the date on which the
Administrator promulgates regulations or issues guidelines
under subsection (e).
(e) Regulations; Guidelines.--
(1) In general.--Not later than 180 days after the date of
completion of the study under subsection (c), the
Administrator shall promulgate regulations or issue
guidelines to carry out field-based projects under this
section.
(2) Requirements.--In promulgating regulations or issuing
guidelines under paragraph (1), the Administrator shall--
(A) take into consideration the results of the study
described in subsection (c); and
(B) provide an opportunity for public review and comment.
(f) Report.--
(1) In general.--Not later than November 1, 2016, the
Administrator shall submit to the appropriate committees of
Congress a report that--
(A) addresses each factor described in paragraph (2); and
(B) is conducted in accordance with this section.
(2) Required factors.--The report shall include baseline
and end-of-project data that measures--
(A) the prevalence of moderate and severe hunger so as to
provide an accurate accounting of project impact on household
access to and consumption of food during every month of the
year prior to data collection;
(B) household ownership of and access to productive assets,
including at a minimum land, livestock, homes, equipment, and
other materials assets needed for income generation;
(C) household incomes, including informal sources of
employment; and
(D) the productive assets of women using the Women's
Empowerment in Agriculture Index.
(3) Public access to records and reports.--Not later than
90 days after the date on which the report is submitted under
paragraph (1), the Administrator shall provide public access
to the report.
(g) Authorization of Appropriations.--There is authorized
to be appropriated to carry out this section $10,000,000 for
each of fiscal years 2013 through 2017.
SEC. 3209. AGRICULTURAL TRADE ENHANCEMENT STUDY.
(a) Definition of Agriculture Committees and
Subcommittees.--In this section, the term ``agriculture
committees and subcommittees'' means--
(1) the Committee on Agriculture of the House of
Representatives;
(2) the Committee on Agriculture, Nutrition, and Forestry
of the Senate; and
(3) the subcommittees on agriculture, rural development,
food and drug administration, and related agencies of the
Committees on Appropriations of the House of Representatives
and the Senate.
(b) Development.--The Secretary, in consultation with the
agriculture committees and subcommittees, shall develop a
study that takes into consideration a reorganization of
international trade functions for imports and exports at the
Department of Agriculture.
(c) Implementation.--In implementing the study under this
section, the Secretary--
(1) in recognition of the importance of agricultural
exports to the farm economy and the economy as a whole, may
include a recommendation for the establishment of an Under
Secretary for Trade and Foreign Agricultural Affairs;
(2) may take into consideration how the Under Secretary
described in paragraph (1) would serve as a multiagency
coordinator of sanitary and phytosanitary issues and
nontariff trade barriers in agriculture with respect to
imports and exports of agricultural products; and
(3) shall take into consideration all implications of a
reorganization described in subsection (b) on domestic
programs and operations of the Department of Agriculture.
(d) Report.--Not later than 180 days after the date of
enactment of this Act, the Secretary shall submit to the
agriculture committees and subcommittees a report describing
the results of the study under this section.
TITLE IV--NUTRITION
Subtitle A--Supplemental Nutrition Assistance Program
SEC. 4001. FOOD DISTRIBUTION PROGRAM ON INDIAN RESERVATIONS.
Section 4(b)(6)(F) of the Food and Nutrition Act of 2008 (7
U.S.C. 2013(b)(6)(F)) is amended by striking ``2012'' and
inserting ``2017''.
SEC. 4002. STANDARD UTILITY ALLOWANCES BASED ON THE RECEIPT
OF ENERGY ASSISTANCE PAYMENTS.
(a) Standard Utility Allowances in the Supplemental
Nutrition Assistance Program.--Section 5(e)(6)(C) of the Food
and Nutrition Act of 2008 (7 U.S.C. 2014(e)(6)(C)) is
amended--
(1) in clause (i), by inserting ``, subject to clause
(iv)'' after ``Secretary''; and
(2) in clause (iv)(I), by striking ``the household still
incurs'' and all that follows through the end of the
subclause and inserting ``the payment received by, or made on
behalf of, the household exceeds $10 or a higher amount
annually, as determined by the Secretary.''.
(b) Conforming Amendment.--Section 2605(f)(2)(A) of the
Low-Income Home Energy Assistance Act of 1981 (42 U.S.C.
8624(f)(2)(A)) is amended by inserting before the semicolon
at the end ``, except that, for purposes of the supplemental
nutrition assistance program established under the Food and
Nutrition Act of 2008 (7 U.S.C. 2011 et seq.), such payments
or allowances exceed $10 or a higher amount annually, as
determined by the Secretary of Agriculture in accordance with
section 5(e)(6)(C)(iv)(I) of that Act (7 U.S.C.
2014(e)(6)(C)(iv)(I))''.
(c) Effective and Implementation Date.--
(1) In general.--Except as provided in paragraph (2), this
section and the amendments made by this section shall take
effect beginning on October 1, 2013, for all certification
periods beginning after that date.
(2) State option to delay implementation for current
recipients.--A State may, at the option of the State,
implement a policy that eliminates or minimizes the effect of
the amendments made by this section for households that
receive a standard utility allowance as of the date of
enactment of this Act for not more than a 180-day period
beginning on the date on which the amendments made by this
section would otherwise affect the benefits received by a
household.
SEC. 4003. ELIGIBILITY DISQUALIFICATIONS.
Section 6(e)(3)(B) of Food and Nutrition Act of 2008 (7
U.S.C. 2015(e)(3)(B)) is amended by striking ``section'' and
inserting the following: ``section, subject to the condition
that the course or program of study--
``(i) is part of a program of career and technical
education (as defined in section 3 of the Carl D. Perkins
Career and Technical Education Act of 2006 (20 U.S.C. 2302))
that may be completed in not more than 4 years at an
institution of higher education (as defined in section 102 of
the Higher Education Act of 1965 (20 U.S.C. 1002)); or
``(ii) is limited to remedial courses, basic adult
education, literacy, or English as a second language;''.
SEC. 4004. ENDING SUPPLEMENTAL NUTRITION ASSISTANCE PROGRAM
BENEFITS FOR LOTTERY OR GAMBLING WINNERS.
(a) In General.--Section 6 of the Food and Nutrition Act of
2008 (7 U.S.C. 2015) is amended by adding at the end the
following:
``(r) Ineligibility for Benefits Due to Receipt of
Substantial Lottery or Gambling Winnings.--
``(1) In general.--Any household in which a member receives
substantial lottery or gambling winnings, as determined by
the Secretary, shall lose eligibility for benefits
immediately upon receipt of the winnings.
``(2) Duration of ineligibility.--A household described in
paragraph (1) shall remain ineligible for participation until
the household meets the allowable financial resources and
income eligibility requirements under subsections (c), (d),
(e), (f), (g), (i), (k), (l), (m), and (n) of section 5.
``(3) Agreements.--As determined by the Secretary, each
State agency, to the maximum extent practicable, shall
establish agreements with entities responsible for the
regulation or sponsorship of gaming in the State to determine
whether individuals participating in the supplemental
nutrition assistance program have received substantial
lottery or gambling winnings.''.
(b) Conforming Amendments.--Section 5(a) of the Food and
Nutrition Act of 2008 (7 U.S.C. 2014(a)) is amended in the
second sentence by striking ``sections 6(b), 6(d)(2), and
6(g)'' and inserting ``subsections (b), (d)(2), (g), and (r)
of section 6''.
SEC. 4005. RETAIL FOOD STORES.
(a) Definition of Retail Food Store.--Subsection (o)(1)(A)
of section 3 of the Food and Nutrition Act of 2008 (7 U.S.C.
2012) (as redesignated by section 4016(a)(4)) is amended by
striking ``at least 2'' and inserting ``at least 3''.
(b) Alternative Benefit Delivery.--Section 7(f) of the Food
and Nutrition Act of 2008 (7 U.S.C. 2016(f)) is amended--
(1) by striking paragraph (2) and inserting the following:
``(2) Imposition of costs.--
``(A) In general.--Except as provided in subparagraph (B),
the Secretary shall require participating retail food stores
(including restaurants participating in a State option
restaurant program intended to serve the elderly, disabled,
and homeless) to pay 100 percent of the costs of acquiring,
and arrange for the implementation of, electronic benefit
transfer point-of-sale equipment and supplies, including
related services.
``(B) Exemptions.--The Secretary may exempt from
subparagraph (A)--
[[Page S4032]]
``(i) farmers' markets, military commissaries, nonprofit
food buying cooperatives, and establishments, organizations,
programs, or group living arrangements described in
paragraphs (5), (7), and (8) of section 3(k); and
``(ii) establishments described in paragraphs (3), (4), and
(9) of section 3(k), other than restaurants participating in
a State option restaurant program.''; and
(2) by adding at the end the following:
``(4) Termination of manual vouchers.--
``(A) In general.--Effective beginning on the date of
enactment of this paragraph, except as provided in
subparagraph (B), no State shall issue manual vouchers to a
household that receives supplemental nutrition assistance
under this Act or allow retail food stores to accept manual
vouchers as payment, unless the Secretary determines that the
manual vouchers are necessary, such as in the event of an
electronic benefit transfer system failure or a disaster
situation.
``(B) Exemptions.--The Secretary may exempt categories of
retail food stores or individual retail food stores from
subparagraph (A) based on criteria established by the
Secretary.
``(5) Unique identification number required.--The Secretary
shall require all parties providing electronic benefit
transfer services to provide for and maintain unique terminal
identification number information through the supplemental
nutrition assistance program electronic benefit transfer
transaction routing system.''.
(c) Electronic Benefit Transfers.--Section 7(h)(3)(B) of
the Food and Nutrition Act of 2008 (7 U.S.C. 2016(h)(3)(B))
is amended by striking ``is operational--'' and all that
follows through ``(ii) in the case of other participating
stores,'' and inserting ``is operational''.
(d) Approval of Retail Food Stores and Wholesale Food
Concerns.--Section 9 of the Food and Nutrition Act of 2008 (7
U.S.C. 2018) is amended--
(1) in subsection (a)--
(A) in the second sentence of paragraph (a)(1), by striking
``; and (C)'' and inserting ``; (C) whether the applicant is
located in an area with significantly limited access to food;
and (D)''; and
(2) by adding at the end the following:
``(4) Retail food stores with significant sales of excepted
items.--
``(A) In general.--No retail food store for which at least
45 percent of the total sales of the retail food store is
from the sale of excepted items described in section 3(k)(1)
may be authorized to accept and redeem benefits unless the
Secretary determines that the participation of the retail
food store is required for the effective and efficient
operation of the supplemental nutrition assistance program.
``(B) Application.--Subparagraph (A) shall be effective--
``(i) in the case of retail food stores applying to be
authorized for the first time, beginning on the date that is
1 year after the date of enactment of this paragraph; and
``(ii) in the case of retail food stores participating in
the program on the date of enactment of this paragraph,
during periodic reauthorization in accordance with paragraph
(2)(A).''; and
(3) by adding at the end the following:
``(g) EBT Service Requirement.--An approved retail food
store shall provide adequate EBT service as described in
section 7(h)(3)(B).''.
SEC. 4006. IMPROVING SECURITY OF FOOD ASSISTANCE.
Section 7(h)(8) of the Food and Nutrition Act of 2008 (7
U.S.C. 2016(h)(8)) is amended--
(1) by striking the paragraph heading and inserting
``Replacement of cards.--'';
(2) by striking ``A State'' and inserting the following:
``(A) Fees.--A State''; and
(3) by adding after subparagraph (A) (as so designated by
paragraph (2)) the following:
``(B) Purposeful loss of cards.--
``(i) In general.--Subject to terms and conditions
established by the Secretary in accordance with clause (ii),
if a household makes excessive requests for replacement of
the electronic benefit transfer card of the household, the
Secretary may require a State agency to decline to issue a
replacement card to the household unless the household, upon
request of the State agency, provides an explanation for the
loss of the card.
``(ii) Requirements.--The terms and conditions established
by the Secretary shall provide that--
``(I) the household be given the opportunity to provide the
requested explanation and meet the requirements under this
paragraph promptly;
``(II) after an excessive number of lost cards, the head of
the household shall be required to review program rights and
responsibilities with State agency personnel authorized to
make determinations under section 5(a); and
``(III) any action taken, including actions required under
section 6(b)(2), other than the withholding of the electronic
benefit transfer card until an explanation described in
subclause (I) is provided, shall be consistent with the due
process protections under section 6(b) or 11(e)(10), as
appropriate.
``(C) Protecting vulnerable persons.--In implementing this
paragraph, a State agency shall act to protect homeless
persons, persons with disabilities, victims of crimes, and
other vulnerable persons who lose electronic benefit transfer
cards but are not intentionally committing fraud.
``(D) Effect on eligibility.--While a State may decline to
issue an electronic benefits transfer card until a household
satisfies the requirements under this paragraph, nothing in
this paragraph shall be considered a denial of, or limitation
on, the eligibility for benefits under section 5.''.
SEC. 4007. TECHNOLOGY MODERNIZATION FOR RETAIL FOOD STORES.
(a) Mobile Technologies.--Section 7(h) of the Food and
Nutrition Act of 2008 (7 U.S.C. 2016(h)) (as amended by
section 4016(e)) is amended by adding at the end the
following:
``(14) Mobile technologies.--
``(A) In general.--Subject to subparagraph (B), the
Secretary shall approve retail food stores to redeem benefits
through electronic means other than wired point of sale
devices for electronic benefit transfer transactions, if the
retail food stores--
``(i) establish recipient protections regarding privacy,
ease of use, access, and support similar to the protections
provided for transactions made in retail food stores;
``(ii) bear the costs of obtaining, installing, and
maintaining mobile technologies, including mechanisms needed
to process EBT cards and transaction fees;
``(iii) demonstrate the foods purchased with benefits
issued under this section through mobile technologies are
purchased at a price not higher than the price of the same
food purchased by other methods used by the retail food
store, as determined by the Secretary;
``(iv) provide adequate documentation for each authorized
transaction, as determined by the Secretary; and
``(v) meet other criteria as established by the Secretary.
``(B) Demonstration project on acceptance of benefits of
mobile transactions.--
``(i) In general.--Before authorizing implementation of
subparagraph (A) in all States, the Secretary shall pilot the
use of mobile technologies determined by the Secretary to be
appropriate to test the feasibility and implications for
program integrity, by allowing retail food stores to accept
benefits from recipients of supplemental nutrition assistance
through mobile transactions.
``(ii) Demonstration projects.--To be eligible to
participate in a demonstration project under clause (i), a
retail food store shall submit to the Secretary for approval
a plan that includes--
``(I) a description of the technology;
``(II) the manner by which the retail food store will
provide proof of the transaction to households;
``(III) the provision of data to the Secretary, consistent
with requirements established by the Secretary, in a manner
that allows the Secretary to evaluate the impact of the
demonstration on participant access, ease of use, and program
integrity; and
``(IV) such other criteria as the Secretary may require.
``(iii) Date of completion.--The demonstration projects
under this subparagraph shall be completed and final reports
submitted to the Secretary by not later than July 1, 2015.
``(C) Report to congress.--The Secretary shall--
``(i) by not later than January 1, 2016, authorize
implementation of subparagraph (A) in all States, unless the
Secretary makes a finding, based on the data provided under
subparagraph (B), that implementation in all States is not in
the best interest of the supplemental nutrition assistance
program; and
``(ii) if the determination made in clause (i) is not to
implement subparagraph (A) in all States, submit a report to
the Committee on Agriculture of the House of Representatives
and the Committee on Agriculture, Nutrition, and Forestry of
the Senate that includes the basis of the finding.''.
(b) Acceptance of Benefits Through On-line Transactions.--
(1) In general.--Section 7 of the Food and Nutrition Act of
2008 (7 U.S.C. 2016) is amended by adding at the end the
following:
``(k) Option to Accept Program Benefits Through On-line
Transactions.--
``(1) In general.--Subject to paragraph (4), the Secretary
shall approve retail food stores to accept benefits from
recipients of supplemental nutrition assistance through on-
line transactions.
``(2) Requirements to accept benefits.--A retail food store
seeking to accept benefits from recipients of supplemental
nutrition assistance through on-line transactions shall--
``(A) establish recipient protections regarding privacy,
ease of use, access, and support similar to the protections
provided for transactions made in retail food stores;
``(B) ensure benefits are not used to pay delivery,
ordering, convenience, or other fees or charges;
``(C) clearly notify participating households at the time a
food order is placed--
``(i) of any delivery, ordering, convenience, or other fee
or charge associated with the food purchase; and
``(ii) that any such fee cannot be paid with benefits
provided under this Act;
``(D) ensure the security of on-line transactions by using
the most effective technology available that the Secretary
considers appropriate and cost-effective and that is
comparable to the security of transactions at retail food
stores; and
``(E) meet other criteria as established by the Secretary.
[[Page S4033]]
``(3) State agency action.--Each State agency shall ensure
that recipients of supplemental nutrition assistance can use
benefits on-line as described in this subsection as
appropriate.
``(4) Demonstration project on acceptance of benefits
through on-line transactions.--
``(A) In general.--Before the Secretary authorizes
implementation of paragraph (1) in all States, the Secretary
shall carry out a number of demonstration projects as
determined by the Secretary to test the feasibility of
allowing retail food stores to accept benefits through on-
line transactions.
``(B) Demonstration projects.--To be eligible to
participate in a demonstration project under subparagraph
(A), a retail food store shall submit to the Secretary for
approval a plan that includes--
``(i) a method of ensuring that benefits may be used to
purchase only eligible items under this Act;
``(ii) a description of the method of educating participant
households about the availability and operation of on-line
purchasing;
``(iii) adequate testing of the on-line purchasing option
prior to implementation;
``(iv) the provision of data as requested by the Secretary
for purposes of analyzing the impact of the project on
participant access, ease of use, and program integrity;
``(v) reports on progress, challenges, and results, as
determined by the Secretary; and
``(vi) such other criteria, including security criteria, as
established by the Secretary.
``(C) Date of completion.--The demonstration projects under
this paragraph shall be completed and final reports submitted
to the Secretary by not later than July 1, 2015.
``(5) Report to congress.--The Secretary shall--
``(A) by not later than January 1, 2016, authorize
implementation of paragraph (1) in all States, unless the
Secretary makes a finding, based on the data provided under
paragraph (4), that implementation in all States is not in
the best interest of the supplemental nutrition assistance
program; and
``(B) if the determination made in subparagraph (A) is not
to implement in all States, submit a report to the Committee
on Agriculture of the House of Representatives and the
Committee on Agriculture, Nutrition, and Forestry of the
Senate that includes the basis of the finding.''.
(2) Conforming amendments.--
(A) Section 7(b) of the Food and Nutrition Act of 2008 (7
U.S.C. 2016(b)) is amended by striking ``purchase food in
retail food stores'' and inserting ``purchase food from
retail food stores''.
(B) Section 10 of the Food and Nutrition Act of 2008 (7
U.S.C. 2019) is amended in the first sentence by inserting
``retail food stores authorized to accept and redeem benefits
through on-line transactions shall be authorized to accept
benefits prior to the delivery of food if the delivery occurs
within a reasonable time of the purchase, as determined by
the Secretary,'' after ``food so purchased,''.
(c) Savings Clause.--Nothing in this section or an
amendment made by this section alter any requirements of the
Food and Nutrition Act of 2008 (7 U.S.C. 2011 et seq.) unless
specifically authorized in this section or an amendment made
by this section.
SEC. 4008. USE OF BENEFITS FOR PURCHASE OF COMMUNITY-
SUPPORTED AGRICULTURE SHARE.
Section 10 of the Food and Nutrition Act of 2008 (7 U.S.C.
2019) (as amended by section 4007(b)(2)(B)) is amended in the
first sentence by inserting ``agricultural producers who
market agricultural products directly to consumers shall be
authorized to redeem benefits for the initial cost of the
purchase of a community-supported agriculture share for an
appropriate time in advance of food delivery as determined by
the Secretary,'' after ``as determined by the Secretary,''.
SEC. 4009. RESTAURANT MEALS PROGRAM.
(a) In General.--Section 11(e) of the Food and Nutrition
Act of 2008 (7 U.S.C. 2020(e)) is amended--
(1) in paragraph (22), by striking ``and'' at the end;
(2) in paragraph (23), by striking the period at the end of
subparagraph (C) and inserting ``; and''; and
(3) by adding at the end the following:
``(24) if the State elects to carry out a program to
contract with private establishments to offer meals at
concessional prices, as described in paragraphs 3, 4, and 9
of section 3(k)--
``(A) the plans of the State agency for operating the
program, including--
``(i) documentation of a need that eligible homeless,
elderly, and disabled clients are underserved in a particular
geographic area;
``(ii) the manner by which the State agency will limit
participation to only those private establishments that the
State determines necessary to meet the need identified in
clause (i); and
``(iii) any other conditions the Secretary may prescribe,
such as the level of security necessary to ensure that only
eligible recipients participate in the program; and
``(B) a report by the State agency to the Secretary
annually, the schedule of which shall be established by the
Secretary, that includes--
``(i) the number of households and individual recipients
authorized to participate in the program, including any
information on whether the individual recipient is elderly,
disabled, or homeless; and
``(ii) an assessment of whether the program is meeting an
established need, as documented under subparagraph (A)(i).''.
(b) Approval of Retail Food Stores and Wholesale Food
Concerns.--Section 9 of the Food and Nutrition Act of 2008 (7
U.S.C. 2018) (as amended by section 4005(d)(3)) is amended by
adding at the end the following:
``(h) Private Establishments.--
``(1) In general.--Subject to paragraph (2), no private
establishment that contracts with a State agency to offer
meals at concessional prices as described in paragraphs 3, 4,
and 9 of section 3(k) may be authorized to accept and redeem
benefits unless the Secretary determines that the
participation of the private establishment is required to
meet a documented need in accordance with section 11(e)(24).
``(2) Existing contracts.--
``(A) In general.--If, on the day before the date of
enactment of this subsection, a State has entered into a
contract with a private establishment described in paragraph
(1) and the Secretary has not determined that the
participation of the private establishment is necessary to
meet a documented need in accordance with section 11(e)(24),
the Secretary shall allow the operation of the private
establishment to continue without that determination of need
for a period not to exceed 180 days from the date on which
the Secretary establishes determination criteria, by
regulation, under section 11(e)(24).
``(B) Justification.--If the Secretary makes a
determination to terminate a contract with a private
establishment that is in effect on the date of enactment of
this subsection, the Secretary shall provide justification to
the State in which the private establishment is located for
that termination.
``(3) Report to congress.--Not later than 90 days after
September 30, 2013, and 90 days after the last day of each
fiscal year thereafter, the Secretary shall report to the
Committee on Agriculture of the House of Representatives and
the Committee on Agriculture, Nutrition, and Forestry of the
Senate on the effectiveness of a program under this
subsection using any information received from States under
section 11(e)(24) as well as any other information the
Secretary may have relating to the manner in which benefits
are used.''.
(c) Conforming Amendments.--Section 3(k) of the Food and
Nutrition Act of 2008 (7 U.S.C. 2012(k)) is amended by
inserting ``subject to section 9(h)'' after ``concessional
prices'' each place it appears.
SEC. 4010. QUALITY CONTROL ERROR RATE DETERMINATION.
Section 16(c) of the Food and Nutrition Act of 2008 (7
U.S.C. 2025(c)) is amended by adding at the end the
following:
``(10) Tolerance level.--For the purposes of this
subsection, the Secretary shall set the tolerance level for
excluding small errors at $25.''.
SEC. 4011. AUTHORIZATION OF APPROPRIATIONS.
Section 18(a)(1) of the Food and Nutrition Act of 2008 (7
U.S.C. 2027(a)(1)) is amended in the first sentence by
striking ``2012'' and inserting ``2017''.
SEC. 4012. ASSISTANCE FOR COMMUNITY FOOD PROJECTS.
Section 25 of the Food and Nutrition Act of 2008 (7 U.S.C.
2034) is amended--
(1) in subsection (a)(1)(B)(ii)--
(A) by striking subclause (I); and
(B) by redesignating subclauses (II) and (III) as
subclauses (I) and (II), respectively; and
(2) in subsection (b), by adding at the end the following:
``(3) Funding.--
``(A) In general.--Out of any funds in the Treasury not
otherwise appropriated, the Secretary of the Treasury shall
transfer to the Secretary to carry out this section not less
than $5,000,000 for fiscal year 2013 and each fiscal year
thereafter.
``(B) Receipt and acceptance.--The Secretary shall be
entitled to receive, shall accept, and shall use to carry out
this section the funds transferred under subparagraph (A),
without further appropriation.
``(C) Maintenance of funding.--The funding provided under
subparagraph (A) shall supplement (and not supplant) other
Federal funding made available to the Secretary to carry out
this section.''.
SEC. 4013. EMERGENCY FOOD ASSISTANCE.
(a) Purchase of Commodities.--Section 27(a) of the Food and
Nutrition Act of 2008 (7 U.S.C. 2036(a)) is amended--
(1) in paragraph (1), by striking ``2008 through 2012'' and
inserting ``2012 through 2017'';
(2) by striking paragraph (2) and inserting the following:
``(2) Amounts.--The Secretary shall use to carry out
paragraph (1)--
``(A) for fiscal year 2012, $260,250,000; and
``(B) for each subsequent fiscal year, the dollar amount of
commodities specified in subparagraph (A) adjusted by the
percentage by which the thrifty food plan has been adjusted
under section 3(u)(4) between June 30, 2012, and June 30 of
the immediately preceding fiscal year, and subsequently
increased by--
``(i) for fiscal year 2013, $28,000,000;
``(ii) for fiscal year 2014, $44,000,000;
``(iii) for fiscal year 2015, $24,000,000;
``(iv) for fiscal year 2016, $18,000,000; and
``(v) for fiscal year 2017 and each fiscal year thereafter,
$10,000,000.''; and
(3) by adding at the end the following:
``(3) Funds availability.--For purposes of the funds
described in this subsection, the Secretary shall--
[[Page S4034]]
``(A) make the funds available for 2 fiscal years; and
``(B) allow States to carry over unexpended balances to the
next fiscal year pursuant to such terms and conditions as are
determined by the Secretary.''.
(b) Emergency Food Program Infrastructure Grants.--Section
209(d) of the Emergency Food Assistance Act of 1983 (7 U.S.C.
7511a(d)) is amended by striking ``2012'' and inserting
``2017''.
SEC. 4014. NUTRITION EDUCATION.
Section 28(b) of the Food and Nutrition Act of 2008 (7
U.S.C. 2036a(b)) is amended by inserting ``and physical
activity'' after ``healthy food choices''.
SEC. 4015. RETAIL FOOD STORE AND RECIPIENT TRAFFICKING.
The Food and Nutrition Act of 2008 (7 U.S.C. 2011 et seq.)
is amended by adding at the end the following:
``SEC. 29. RETAIL FOOD STORE AND RECIPIENT TRAFFICKING.
``(a) Purpose.--The purpose of this section is to provide
the Department of Agriculture with additional resources to
prevent trafficking in violation of this Act by strengthening
recipient and retail food store program integrity.
``(b) Use of Funds.--Additional funds are provided under
this section to supplement the retail food store and
recipient integrity activities of the Department.
``(c) Funding.--
``(1) In general.--Out of any funds in the Treasury not
otherwise appropriated, the Secretary of the Treasury shall
transfer to the Secretary to carry out this section not less
than $18,500,000 for fiscal year 2013 and each fiscal year
thereafter.
``(2) Receipt and acceptance.--The Secretary shall be
entitled to receive, shall accept, and shall use to carry out
this section the funds transferred under paragraph (1),
without further appropriation.
``(3) Maintenance of funding.--The funding provided under
paragraph (1) shall supplement (and not supplant) other
Federal funding for programs carried out under this Act.''.
SEC. 4016. TECHNICAL AND CONFORMING AMENDMENTS.
(a) Section 3 of the Food and Nutrition Act of 2008 (7
U.S.C. 2012) is amended--
(1) in subsection (g), by striking ``coupon,'' and
inserting ``coupon'';
(2) in subsection (k)(7), by striking ``or are'' and
inserting ``and'';
(3) by striking subsection (l);
(4) by redesignating subsections (m) through (t) as
subsections (l) through (s), respectively; and
(5) by inserting after subsection (s) (as so redesignated)
the following:
``(t) `Supplemental nutrition assistance program' means the
program operated pursuant to this Act.''.
(b) Section 4(a) of the Food and Nutrition Act of 2008 (7
U.S.C. 2013(a)) is amended in the last sentence by striking
``benefits'' and inserting ``Benefits''.
(c) Section 5 of the Food and Nutrition Act of 2008 (7
U.S.C. 2014) is amended--
(1) in the last sentence of subsection (i)(2)(D), by
striking ``section 13(b)(2)'' and inserting ``section
13(b)''; and
(2) in subsection (k)(4)(A), by striking ``paragraph
(2)(H)'' and inserting ``paragraph (2)(G)''.
(d) Section 6(d)(4) of the Food and Nutrition Act of 2008
(7 U.S.C. 2015(d)(4)) is amended in subparagraphs (B)(vii)
and (F)(iii) by indenting both clauses appropriately.
(e) Section 7(h) of the Food and Nutrition Act of 2008 (7
U.S.C. 2016(h)) is amended by redesignating the second
paragraph (12) (relating to interchange fees) as paragraph
(13).
(f) Section 9(a) of the Food and Nutrition Act of 2008 (7
U.S.C. 2018(a)) is amended by indenting paragraph (3)
appropriately.
(g) Section 12 of the Food and Nutrition Act of 2008 (7
U.S.C. 2021) is amended--
(1) in subsection (b)(3)(C), by striking ``civil money
penalties'' and inserting ``civil penalties''; and
(2) in subsection (g)(1), by striking ``(7 U.S.C. 1786)''
and inserting ``(42 U.S.C. 1786)''.
(h) Section 15(b)(1) of the Food and Nutrition Act of 2008
(7 U.S.C. 2024(b)(1)) is amended in the first sentence by
striking ``an benefit'' and inserting ``a benefit''.
(i) Section 16(a) of the Food and Nutrition Act of 2008 (7
U.S.C. 2025(a)) is amended in the proviso following paragraph
(8) by striking ``as amended.''.
(j) Section 18(e) of the Food and Nutrition Act of 2008 (7
U.S.C. 2027(e)) is amended in the first sentence by striking
``sections 7(f)'' and inserting ``section 7(f)''.
(k) Section 22(b)(10)(B)(i) of the Food and Nutrition Act
of 2008 (7 U.S.C. 2031(b)(10)(B)(i)) is amended in the last
sentence by striking ``Food benefits'' and inserting
``Benefits''.
(l) Section 26(f)(3)(C) of the Food and Nutrition Act of
2008 (7 U.S.C. 2035(f)(3)(C)) is amended by striking
``subsection'' and inserting ``subsections''.
(m) Section 27(a)(1) of the Food and Nutrition Act of 2008
(7 U.S.C. 2036(a)(1)) is amended by striking ``(Public Law 98
8; 7 U.S.C. 612c note)'' and inserting ``(7 U.S.C. 7515)''.
(n) Section 509 of the Older Americans Act of 1965 (42
U.S.C. 3056g) is amended in the section heading by striking
``FOOD STAMP PROGRAMS'' and inserting ``SUPPLEMENTAL
NUTRITION ASSISTANCE PROGRAMS''.
(o) Section 4115(c)(2)(H) of the Food, Conservation, and
Energy Act of 2008 (Public Law 110 246; 122 Stat. 1871) is
amended by striking ``531'' and inserting ``454''.
Subtitle B--Commodity Distribution Programs
SEC. 4101. COMMODITY DISTRIBUTION PROGRAM.
Section 4(a) of the Agriculture and Consumer Protection Act
of 1973 (7 U.S.C. 612c note; Public Law 93 86) is amended in
the first sentence by striking ``2012'' and inserting
``2017''.
SEC. 4102. COMMODITY SUPPLEMENTAL FOOD PROGRAM.
Section 5 of the Agriculture and Consumer Protection Act of
1973 (7 U.S.C. 612c note; Public Law 93 86) is amended--
(1) in paragraphs (1) and (2)(B) of subsection (a), by
striking ``2012'' each place it appears and inserting
``2017'';
(2) in the first sentence of subsection (d)(2), by striking
``2012'' and inserting ``2017'';
(3) by striking subsection (g) and inserting the following:
``(g) Eligibility.--Except as provided in subsection (m),
the States shall only provide assistance under the commodity
supplemental food program to low-income persons aged 60 and
older.''; and
(4) by adding at the end the following:
``(m) Phase-out.--Notwithstanding any other provision of
law, an individual who receives assistance under the
commodity supplemental food program on the day before the
date of enactment of this subsection shall continue to
receive that assistance until the date on which the
individual is no longer eligible for assistance under the
eligibility requirements for the program in effect on the day
before the date of enactment of this subsection.''.
SEC. 4103. DISTRIBUTION OF SURPLUS COMMODITIES TO SPECIAL
NUTRITION PROJECTS.
Section 1114(a)(2)(A) of the Agriculture and Food Act of
1981 (7 U.S.C. 1431e(2)(A)) is amended in the first sentence
by striking ``2012'' and inserting ``2017''.
SEC. 4104. TECHNICAL AND CONFORMING AMENDMENTS.
Section 3 of the Commodity Distribution Reform Act and WIC
Amendments of 1987 (7 U.S.C. 612c note; Public Law 100 237)
is amended--
(1) in subsection (a)--
(A) in paragraph (2), by striking subparagraph (B) and
inserting the following:
``(B) the program established under section 4(b) of the
Food and Nutrition Act of 2008 (7 U.S.C. 2013(b));''; and
(B) in paragraph (3)(D), by striking ``the Committee on
Education and Labor'' and inserting ``the Committee on
Education and the Workforce'';
(2) in subsection (b)(1)(A)(ii), by striking ``section 32
of the Agricultural Adjustment Act (7 U.S.C. 601 et seq.)''
and inserting ``section 32 of the Act of August 24, 1935 (7
U.S.C. 612c)'';
(3) in subsection (e)(1)(D)(iii), by striking subclause
(II) and inserting the following:
``(II) the program established under section 4(b) of the
Food and Nutrition Act of 2008 (7 U.S.C. 2013(b));''; and
(4) in subsection (k), by striking ``the Committee on
Education and Labor'' and inserting ``the Committee on
Education and the Workforce''.
Subtitle C--Miscellaneous
SEC. 4201. PURCHASE OF FRESH FRUITS AND VEGETABLES FOR
DISTRIBUTION TO SCHOOLS AND SERVICE
INSTITUTIONS.
Section 10603(b) of the Farm Security and Rural Investment
Act of 2002 (7 U.S.C. 612c 4(b)) is amended by striking
``2012'' and inserting ``2017''.
SEC. 4202. SENIORS FARMERS' MARKET NUTRITION PROGRAM.
Section 4402(a) of the Farm Security and Rural Investment
Act of 2002 (7 U.S.C. 3007(a)) is amended by striking
``2012'' and inserting ``2017''.
SEC. 4203. NUTRITION INFORMATION AND AWARENESS PILOT PROGRAM.
Section 4403 of the Farm Security and Rural Investment Act
of 2002 (7 U.S.C. 3171 note; Public Law 107 171) is repealed.
SEC. 4204. WHOLE GRAIN PRODUCTS.
Section 4305 of the Food, Conservation, and Energy Act of
2008 (42 U.S.C. 1755a) is amended--
(1) in subsection (a), by striking ``2005'' and inserting
``2010'';
(2) in subsection (d), by striking ``2011'' and inserting
``2015'';
(3) in subsection (e), by striking ``Labor of the House of
Representative'' and inserting ``the Workforce of the House
of Representatives''; and
(4) by adding at the end the following:
``(f) Funding.--
``(1) In general.--On October 1, 2013, out of any funds in
the Treasury not otherwise appropriated, the Secretary of the
Treasury shall transfer to the Secretary to carry out this
section $10,000,000 for the period of fiscal years 2014
through 2015.
``(2) Receipt and acceptance.--The Secretary shall be
entitled to receive, shall accept, and shall use to carry out
this section the funds transferred under paragraph (1),
without further appropriation.
``(3) Maintenance of funding.--The funding provided under
paragraph (1) shall supplement (and not supplant) other
Federal funding (including funds made available under section
32 of the Act of August 24, 1935 (7 U.S.C. 612c)) for
programs carried out under--
``(A) the Richard B. Russell National School Lunch Act (42
U.S.C. 1751 et seq.), except for section 19 of that Act (42
U.S.C. 1769a);
[[Page S4035]]
``(B) the Emergency Food Assistance Act of 1983 (7 U.S.C.
7501 et seq.); and
``(C) section 27 of the Food and Nutrition Act of 2008 (7
U.S.C. 2036).''.
SEC. 4205. HUNGER-FREE COMMUNITIES.
Section 4405 of the Food, Conservation, and Energy Act of
2008 (7 U.S.C. 7517) is amended--
(1) in subsection (a)--
(A) by striking paragraph (1) and inserting the following:
``(1) Eligible entity.--
``(A) Collaborative grants.--In subsection (b), the term
`eligible entity' means a public food program service
provider or nonprofit organization, including an emergency
feeding organization, that has collaborated or will
collaborate with 1 or more local partner organizations to
achieve at least 1 hunger-free communities goal.
``(B) Incentive grants.--In subsection (c), the term
`eligible entity' means a nonprofit organization (including
an emergency feeding organization), an agricultural
cooperative, producer network or association, community
health organization, public benefit corporation, economic
development corporation, farmers' market, community-supported
agriculture program, buying club, supplemental nutrition
assistance program retail food store, a State, local, or
tribal agency, and any other entity the Secretary
designates.'';
(B) by adding at the end the following:
``(4) Supplemental nutrition assistance program.--The term
`supplemental nutrition assistance program' means the
supplemental nutrition assistance program established under
the Food and Nutrition Act of 2008 (7 U.S.C. 2011 et seq.).
``(5) Underserved community.--The term `underserved
community' has the meaning given the term in section 25 of
the Food and Nutrition Act of 2008 (7 U.S.C. 2034).'';
(2) in subsection (b)(1)(A), by striking ``not more than 50
percent of any funds made available under subsection (e)''
and inserting ``funds made available under subsection
(d)(1)''; and
(3) by striking subsections (c), (d), and (e) and inserting
the following:
``(c) Hunger-free Communities Incentive Grants.--
``(1) Authorization.--
``(A) In general.--In each of the years specified in
subsection (d), the Secretary shall make grants to eligible
entities in accordance with paragraph (2).
``(B) Federal share.--The Federal share of the cost of
carrying out an activity under this subsection shall not
exceed 50 percent of the total cost of the activity.
``(C) Non-federal share.--
``(i) In general.--The non-Federal share of the cost of an
activity under this subsection may be provided--
``(I) in cash or in-kind contributions as determined by the
Secretary, including facilities, equipment, or services; and
``(II) by a State or local government or a private source.
``(ii) Limitation.--In the case of a for-profit entity, the
non-Federal share described in clause (i) shall not include
services of an employee, including salaries paid or expenses
covered by the employer.
``(2) Criteria.--
``(A) In general.--For purposes of this subsection, an
eligible entity is a governmental agency or nonprofit
organization that--
``(i) meets the application criteria set forth by the
Secretary; and
``(ii) proposes a project that, at a minimum--
``(I) has the support of the State agency;
``(II) would increase the purchase of fruits and vegetables
by low-income consumers participating in the supplemental
nutrition assistance program by providing incentives at the
point of purchase;
``(III) agrees to participate in the evaluation described
in paragraph (4);
``(IV) ensures that the same terms and conditions apply to
purchases made by individuals with benefits issued under this
Act and incentives provided for in this subsection as apply
to purchases made by individuals who are not members of
households receiving benefits, such as provided for in
section 278.2(b) of title 7, Code of Federal Regulations (or
a successor regulation); and
``(V) includes effective and efficient technologies for
benefit redemption systems that may be replicated in other
for States and communities.
``(B) Priority.--In awarding grants under this section, the
Secretary shall give priority to projects that--
``(i) maximize the share of funds used for direct
incentives to participants;
``(ii) use direct-to-consumer sales marketing;
``(iii) demonstrate a track record of designing and
implementing successful nutrition incentive programs that
connect low-income consumers and agricultural producers;
``(iv) provide locally or regionally produced fruits and
vegetables;
``(v) are located in underserved communities; or
``(vi) address other criteria as established by the
Secretary.
``(3) Applicability.--
``(A) In general.--The value of any benefit provided to a
participant in any activity funded under this subsection
shall not be considered income or resources for any purpose
under any Federal, State, or local law.
``(B) Prohibition on collection of sales taxes.--Each State
shall ensure that no State or local tax is collected on a
purchase of food under this subsection.
``(C) No limitation on benefits.--A grant made available
under this subsection shall not be used to carry out any
project that limits the use of benefits under the Food and
Nutrition Act of 2008 (7 U.S.C. 2011 et seq.) or any other
Federal nutrition law.
``(D) Household allotment.--Assistance provided under this
subsection to households receiving benefits under the
supplemental nutrition assistance program shall not--
``(i) be considered part of the supplemental nutrition
assistance program benefits of the household; or
``(ii) be used in the collection or disposition of claims
under section 13 of the Food and Nutrition Act of 2008 (7
U.S.C. 2022).
``(4) Evaluation.--
``(A) Independent evaluation.--The Secretary shall provide
for an independent evaluation of projects selected under this
subsection that measures the impact of each project on--
``(i) improving the nutrition and health status of
participating households receiving incentives under this
subsection; and
``(ii) increasing fruit and vegetable purchases in
participating households.
``(B) Requirement.--The independent evaluation under
subparagraph (A) shall use rigorous methodologies capable of
producing scientifically valid information regarding the
effectiveness of a project.
``(C) Costs.--The Secretary may use funds not to exceed 10
percent of the funding provided to carry out this section to
pay costs associated with administering, monitoring, and
evaluating each project.
``(d) Funding.--
``(1) Authorization of appropriations.--There is authorized
to be appropriated to carry out subsection (b) $5,000,000 for
each of fiscal years 2013 through 2017.
``(2) Mandatory funding.--Of the funds of the Commodity
Credit Corporation, the Secretary shall use to carry out
subsection (c)--
``(A) $15,000,000 for fiscal year 2013;
``(B) $20,000,000 for each of fiscal years 2014 through
2016; and
``(C) $25,000,000 for fiscal year 2017.''.
SEC. 4206. HEALTHY FOOD FINANCING INITIATIVE.
(a) In General.--Subtitle D of title II of the Department
of Agriculture Reorganization Act of 1994 (7 U.S.C. 6951 et
seq.) is amended by adding at the end the following:
``SEC. 242. HEALTHY FOOD FINANCING INITIATIVE.
``(a) Purpose.--The purpose of this section is to enhance
the authorities of the Secretary to support efforts to
provide access to healthy food by establishing an initiative
to improve access to healthy foods in underserved areas, to
create and preserve quality jobs, and to revitalize low-
income communities by providing loans and grants to eligible
fresh, healthy food retailers to overcome the higher costs
and initial barriers to entry in underserved areas.
``(b) Definitions.--In this section:
``(1) Community development financial institution.--The
term `community development financial institution' has the
meaning given the term in section 103 of the Community
Development Banking and Financial Institutions Act of 1994
(12 U.S.C. 4702).
``(2) Initiative.--The term `Initiative' means the Healthy
Food Financing Initiative established under subsection
(c)(1).
``(3) National fund manager.--The term `national fund
manager' means a community development financial institution
that is--
``(A) in existence on the date of enactment of this
section; and
``(B) certified by the Community Development Financial
Institution Fund of the Department of Treasury to manage the
Initiative for purposes of--
``(i) raising private capital;
``(ii) providing financial and technical assistance to
partnerships; and
``(iii) funding eligible projects to attract fresh, healthy
food retailers to underserved areas, in accordance with this
section.
``(4) Partnership.--The term `partnership' means a
regional, State, or local public-private partnership that--
``(A) is organized to improve access to fresh, healthy
foods;
``(B) provides financial and technical assistance to
eligible projects; and
``(C) meets such other criteria as the Secretary may
establish.
``(5) Perishable food.--The term `perishable food' means a
staple food that is fresh, refrigerated, or frozen.
``(6) Quality job.--The term `quality job' means a job that
provides wages and other benefits comparable to, or better
than, similar positions in existing businesses of similar
size in similar local economies.
``(7) Staple food.--
``(A) In general.--The term `staple food' means food that
is a basic dietary item.
``(B) Inclusions.--The term `staple food' includes--
``(i) bread;
``(ii) flour;
``(iii) fruits;
``(iv) vegetables; and
``(v) meat.
``(c) Initiative.--
``(1) Establishment.--The Secretary shall establish an
initiative to achieve the purpose described in subsection (a)
in accordance with this subsection.
``(2) Implementation.--
``(A) In general.--
``(i) In general.--In carrying out the Initiative, the
Secretary shall provide funding
[[Page S4036]]
to entities with eligible projects, as described in
subparagraph (B), subject to the priorities described in
subparagraph (C).
``(ii) Use of funds.--Funds provided to an entity pursuant
to clause (i) shall be used--
``(I) to create revolving loan pools of capital or other
products to provide loans to finance eligible projects or
partnerships;
``(II) to provide grants for eligible projects or
partnerships;
``(III) to provide technical assistance to funded projects
and entities seeking Initiative funding; and
``(IV) to cover administrative expenses of the national
fund manager in an amount not to exceed 10 percent of the
Federal funds provided.
``(B) Eligible projects.--Subject to the approval of the
Secretary, the national fund manager shall establish
eligibility criteria for projects under the Initiative, which
shall include the existence or planned execution of
agreements--
``(i) to expand or preserve the availability of staple
foods in underserved areas with moderate- and low-income
populations by maintaining or increasing the number of retail
outlets that offer an assortment of perishable food and
staple food items, as determined by the Secretary, in those
areas; and
``(ii) to accept benefits under the supplemental nutrition
assistance program established under the Food and Nutrition
Act of 2008 (7 U.S.C. 2011 et seq.).
``(C) Priorities.--In carrying out the Initiative, priority
shall be given to projects that--
``(i) are located in severely distressed low-income
communities, as defined by the Community Development
Financial Institutions Fund of the Department of Treasury;
and
``(ii) include 1 or more of the following characteristics:
``(I) The project will create or retain quality jobs for
low-income residents in the community.
``(II) The project supports regional food systems and
locally grown foods, to the maximum extent practicable.
``(III) In areas served by public transit, the project is
accessible by public transit.
``(IV) The project involves women- or minority-owned
businesses.
``(V) The project receives funding from other sources,
including other Federal agencies.
``(VI) The project otherwise advances the purpose of this
section, as determined by the Secretary.
``(d) Authorization of Appropriations.--There is authorized
to be appropriated to the Secretary to carry out this section
$125,000,000, to remain available until expended.''.
(b) Conforming Amendment.--Section 296(b) of the Department
of Agriculture Reorganization Act of 1994 (7 U.S.C. 7014(b))
(as amended by section 1609(d)) is amended--
(1) in paragraph (7), by striking ``or'' at the end;
(2) in paragraph (8), by striking the period at the end and
inserting ``; or''; and
(3) by adding at the end the following:
``(9) the authority of the Secretary to establish and carry
out the Health Food Financing Initiative under section
242.''.
TITLE V--CREDIT
Subtitle A--Farmer Loans, Servicing, and Other Assistance Under the
Consolidated Farm and Rural Development Act
SEC. 5001. FARMER LOANS, SERVICING, AND OTHER ASSISTANCE
UNDER THE CONSOLIDATED FARM AND RURAL
DEVELOPMENT ACT.
The Consolidated Farm and Rural Development Act (as amended
by section 6001) is amended by inserting after section 3002
the following:
``Subtitle A--Farmer Loans, Servicing, and Other Assistance
``CHAPTER 1--FARM OWNERSHIP LOANS
``SEC. 3101. FARM OWNERSHIP LOANS.
``(a) In General.--The Secretary may make or guarantee a
farm ownership loan under this chapter to an eligible farmer.
``(b) Eligibility.--A farmer shall be eligible under
subsection (a) only--
``(1) if the farmer, or, in the case of an entity, 1 or
more individuals holding a majority interest in the farmer--
``(A) is a citizen of the United States; and
``(B) in the case of a direct loan, has training or farming
experience that the Secretary determines is sufficient to
ensure a reasonable prospect of success in the farming
operation proposed by the farmer;
``(2)(A) in the case of a farmer that is an individual, if
the farmer is or proposes to become an owner and operator of
a farm that is not larger than a family farm; or
``(B) in the case of a lessee-operator of a farm located in
the State of Hawaii, if the Secretary determines that--
``(i) the farm is not larger than a family farm;
``(ii) the farm cannot be acquired in fee simple by the
lessee-operator;
``(iii) adequate security is provided for the loan with
respect to the farm for which the lessee-operator applies
under this chapter; and
``(iv) there is a reasonable probability of accomplishing
the objectives and repayment of the loan;
``(3) in the case of a farmer that is a cooperative,
corporation, partnership, trust, limited liability company,
joint operation, or such other legal entity as the Secretary
determines to be appropriate, with respect to the entity and
each farm in which the entity has an ownership or operator
interest--
``(A) if--
``(i) a majority interest is held by individuals who are
related by blood or marriage, as defined by the Secretary;
``(ii) all of the individuals are or propose to become
owners or operators of a farm that is not larger than a
family farm; and
``(iii) at least 1 of the individuals is or proposes to
become an operator of the farm; or
``(B) if--
``(i) the entire interest is held by individuals who are
related by blood or marriage, as defined by the Secretary;
``(ii) all of the individuals are or propose to become farm
operators; and
``(iii) the ownership interest of each individual
separately constitutes not larger than a family farm, even if
the ownership interests of the individuals collectively
constitute larger than a family farm;
``(4) in the case of an entity that is, or will become
within a reasonable period of time, as determined by the
Secretary, only the operator of a family farm, if the 1 or
more individuals who are the owners of the family farm own--
``(A) a percentage of the family farm that exceeds 50
percent; or
``(B) such other percentage as the Secretary determines to
be appropriate;
``(5) in the case of an operator described in paragraph (3)
that is owned, in whole or in part, by 1 or more other
entities, if each of the individuals that have a direct or
indirect ownership interest in such other entities also have
a direct ownership interest in the entity applying as an
individual; and
``(6) if the farmer and each individual that holds a
majority interest in the farmer is unable to obtain credit
elsewhere.
``(c) Direct Loans.--
``(1) In general.--Subject to paragraph (2), the Secretary
may make a direct loan under this chapter only to a farmer
who has participated in business operations of a farm for not
less than 3 years (or has other acceptable experience for a
period of time determined by the Secretary) and--
``(A) is a qualified beginning farmer;
``(B) has not received a previous direct farm ownership
loan made under this chapter; or
``(C) has not received a direct farm ownership loan under
this chapter more than 10 years before the date on which the
new loan would be made.
``(2) Youth loans.--The operation of an enterprise by a
youth under section 3201(d) shall not be considered the
operation of a farm for purposes of paragraph (1).
``SEC. 3102. PURPOSES OF LOANS.
``(a) Allowed Purposes.--
``(1) Direct loans.--A farmer may use a direct loan made
under this chapter only--
``(A) to acquire or enlarge a farm;
``(B) to make capital improvements to a farm;
``(C) to pay loan closing costs related to acquiring,
enlarging, or improving a farm;
``(D) to pay for activities to promote soil and water
conservation and protection described in section 3103 on a
farm; or
``(E) to refinance a temporary bridge loan made by a
commercial or cooperative lender to a farmer for the
acquisition of land for a farm, if--
``(i) the Secretary approved an application for a direct
farm ownership loan to the farmer for acquisition of the
land; and
``(ii) funds for direct farm ownership loans under section
3201(a) were not available at the time at which the
application was approved.
``(2) Guaranteed loans.--A farmer may use a loan guaranteed
under this chapter only--
``(A) to acquire or enlarge a farm;
``(B) to make capital improvements to a farm;
``(C) to pay loan closing costs related to acquiring,
enlarging, or improving a farm;
``(D) to pay for activities to promote soil and water
conservation and protection described in section 3103 on a
farm; or
``(E) to refinance indebtedness.
``(b) Preferences.--In making or guaranteeing a loan under
this chapter for purchase of a farm, the Secretary shall give
preference to a person who--
``(1) has a dependent family;
``(2) to the extent practicable, is able to make an initial
down payment on the farm; or
``(3) is an owner of livestock or farm equipment that is
necessary to successfully carry out farming operations.
``(c) Hazard Insurance Requirement.--The Secretary may not
make a loan to a farmer under this chapter unless the farmer
has, or agrees to obtain, hazard insurance on any real
property to be acquired or improved with the loan.
``SEC. 3103. CONSERVATION LOAN AND LOAN GUARANTEE PROGRAM.
``(a) In General.--The Secretary may make or guarantee
qualified conservation loans to eligible borrowers under this
section.
``(b) Definitions.--In this section:
``(1) Conservation plan.--The term `conservation plan'
means a plan, approved by the Secretary, that, for a farming
operation, identifies the conservation activities that will
be addressed with loan funds provided under this section,
including--
``(A) the installation of conservation structures to
address soil, water, and related resources;
``(B) the establishment of forest cover for sustained yield
timber management, erosion control, or shelter belt purposes;
[[Page S4037]]
``(C) the installation of water conservation measures;
``(D) the installation of waste management systems;
``(E) the establishment or improvement of permanent
pasture;
``(F) compliance with section 1212 of the Food Security Act
of 1985 (16 U.S.C. 3812); and
``(G) other purposes consistent with the plan, including
the adoption of any other emerging or existing conservation
practices, techniques, or technologies approved by the
Secretary.
``(2) Qualified conservation loan.--The term `qualified
conservation loan' means a loan, the proceeds of which are
used to cover the costs to the borrower of carrying out a
qualified conservation project.
``(3) Qualified conservation project.--The term `qualified
conservation project' means conservation measures that
address provisions of a conservation plan of the eligible
borrower.
``(c) Eligibility.--
``(1) In general.--The Secretary may make or guarantee
loans to farmers.
``(2) Requirements.--To be eligible for a loan under this
section, applicants shall meet the citizenship and training
and experience requirements of section 3101(b).
``(d) Priority.--In making or guaranteeing loans under this
section, the Secretary shall give priority to--
``(1) qualified beginning farmers and socially
disadvantaged farmers;
``(2) owners or tenants who use the loans to convert to
sustainable or organic agricultural production systems; and
``(3) producers who use the loans to build conservation
structures or establish conservation practices to comply with
section 1212 of the Food Security Act of 1985 (16 U.S.C.
3812).
``(e) Limitations Applicable to Loan Guarantees.--The
portion of a loan that the Secretary may guarantee under this
section shall not exceed 75 percent of the principal amount
of the loan.
``(f) Administrative Provisions.--The Secretary shall
ensure, to the maximum extent practicable, that loans made or
guaranteed under this section are distributed across diverse
geographic regions.
``(g) Credit Eligibility.--The provisions of paragraphs (1)
and (3) of section 3406(a) shall not apply to loans made or
guaranteed under this section.
``(h) Authorization of Appropriations.--For each of fiscal
years 2012 through 2017, there are authorized to be
appropriated to the Secretary such sums as are necessary to
carry out this section.
``SEC. 3104. LOAN MAXIMUMS.
``(a) Maximum.--
``(1) In general.--The Secretary shall make or guarantee no
loan under sections 3101, 3102, 3103, 3106, and 3107 that
would cause the unpaid indebtedness under those sections of
any 1 borrower to exceed the lesser of--
``(A) the value of the farm or other security, or
``(B)(i) in the case of a loan made by the Secretary,
$300,000; or
``(ii) in the case of a loan guaranteed by the Secretary,
$700,000 (as modified under paragraph (2)).
``(2) Modification.--The amount specified in paragraph
(1)(B)(ii) shall be--
``(A) increased, beginning with fiscal year 2000, by the
inflation percentage applicable to the fiscal year in which
the loan is guaranteed; and
``(B) reduced by the amount of any unpaid indebtedness of
the borrower on loans under chapter 2 that are guaranteed by
the Secretary.
``(b) Determination of Value.--In determining the value of
the farm, the Secretary shall consider appraisals made by
competent appraisers under rules established by the
Secretary.
``(c) Inflation Percentage.--For purposes of this section,
the inflation percentage applicable to a fiscal year is the
percentage (if any) by which--
``(1) the average of the Prices Paid By Farmers Index (as
compiled by the National Agricultural Statistics Service of
the Department) for the 12-month period ending on August 31
of the immediately preceding fiscal year; exceeds
``(2) the average of that index (as so defined) for the 12-
month period ending on August 31, 1996.
``SEC. 3105. REPAYMENT REQUIREMENTS FOR FARM OWNERSHIP LOANS.
``(a) Period for Repayment.--The period for repayment of a
loan under this chapter shall not exceed 40 years.
``(b) Interest Rates.--
``(1) In general.--Except as otherwise provided in this
title, the interest rate on a loan under this chapter shall
be determined by the Secretary at a rate--
``(A) not to exceed the sum obtained by adding--
``(i) the current average market yield on outstanding
marketable obligations of the United States with remaining
periods to maturity comparable to the average maturity of the
loan; and
``(ii) an amount not to exceed 1 percent, as determined by
the Secretary; and
``(B) adjusted to the nearest \1/8\ of 1 percent.
``(2) Low income farm ownership loans.--Except as provided
in paragraph (3), the interest rate on a loan (other than a
guaranteed loan) under section 3106 shall be determined by
the Secretary at a rate that is--
``(A) not greater than the sum obtained by adding--
``(i) an amount that does not exceed \1/2\ of the current
average market yield on outstanding marketable obligations of
the United States with maturities of 5 years; and
``(ii) an amount not to exceed 1 percent per year, as the
Secretary determines is appropriate; and
``(B) not less than 5 percent per year.
``(3) Joint financing arrangement.--If a direct farm
ownership loan is made under this chapter as part of a joint
financing arrangement and the amount of the direct farm
ownership loan does not exceed 50 percent of the total
principal amount financed under the arrangement, the interest
rate on the direct farm ownership loan shall be at least 4
percent annually.
``(4) Guaranteed loans.--The interest rate on a loan made
under this chapter as a guaranteed loan shall be such rate as
may be agreed on by the borrower and the lender, but not in
excess of any rate determined by the Secretary.
``(c) Payment of Charges.--A borrower of a loan made or
guaranteed under this chapter shall pay such fees and other
charges as the Secretary may require, and prepay to the
Secretary such taxes and insurance as the Secretary may
require, on such terms and conditions as the Secretary may
prescribe.
``(d) Security.--
``(1) In general.--The Secretary shall take as security for
an obligation entered into in connection with a loan, a
mortgage on a farm with respect to which the loan is made or
such other security as the Secretary may require.
``(2) Liens to united states.--An instrument for security
under paragraph (1) may constitute a lien running to the
United States notwithstanding the fact that the note for the
security may be held by a lender other than the United
States.
``(3) Multiple loans.--A borrower may use the same
collateral to secure 2 or more loans made or guaranteed under
this chapter, except that the outstanding amount of the loans
may not exceed the total value of the collateral.
``(e) Mineral Rights as Collateral.--
``(1) In general.--In the case of a farm ownership loan
made after December 23, 1985, unless appraised values of the
rights to oil, gas, or other minerals are specifically
included as part of the appraised value of collateral
securing the loan, the rights to oil, gas, or other minerals
located under the property shall not be considered part of
the collateral securing the loan.
``(2) Compensatory payments.--Nothing in this subsection
prevents the inclusion of, as part of the collateral securing
the loan, any payment or other compensation the borrower may
receive for damages to the surface of the collateral real
estate resulting from the exploration for or recovery of
minerals.
``(f) Additional Collateral.--The Secretary may not--
``(1) require any borrower to provide additional collateral
to secure a farmer program loan made or guaranteed under this
subtitle, if the borrower is current in the payment of
principal and interest on the loan; or
``(2) bring any action to foreclose, or otherwise
liquidate, the loan as a result of the failure of a borrower
to provide additional collateral to secure the loan, if the
borrower was current in the payment of principal and interest
on the loan at the time the additional collateral was
requested.
``SEC. 3106. LIMITED-RESOURCE LOANS.
``(a) In General.--The Secretary may make or guarantee a
limited-resource loan for any of the purposes specified in
sections 3102(a) or 3103(a) to a farmer in the United States
who--
``(1) in the case of an entity, all members, stockholders,
or partners are eligible under section 3101(b);
``(2) has a low income; and
``(3) demonstrates a need to maximize the income of the
farmer from farming operations.
``(b) Installments.--A loan made or guaranteed under this
section shall be repayable in such installments as the
Secretary determines will provide for reduced payments during
the initial repayment period of the loan and larger payments
during the remainder of the repayment period of the loan.
``(c) Interest Rates.--Except as provided in section
3105(b)(3) and in section 3204(b)(3), the interest rate on
loans (other than guaranteed loans) under this section shall
not be--
``(1) greater than the sum obtained by adding--
``(A) an amount that does not exceed \1/2\ of the current
average market yield on outstanding marketable obligations of
the United States with maturities of 5 years; and
``(B) an amount not exceeding 1 percent per year, as the
Secretary determines is appropriate; or
``(2) less than 5 percent per year.
``SEC. 3107. DOWNPAYMENT LOAN PROGRAM.
``(a) In General.--
``(1) Establishment.--Notwithstanding any other provision
of this chapter, the Secretary shall establish, under the
farm ownership loan program established under this chapter, a
program under which loans shall be made under this section to
a qualified beginning farmer or a socially disadvantaged
farmer for a downpayment on a farm ownership loan.
``(2) Coordination.--The Secretary shall be the primary
coordinator of credit supervision for the downpayment loan
program established under this section, in consultation
[[Page S4038]]
with a commercial or cooperative lender and, if applicable, a
contracting credit counseling service selected under section
3420(c).
``(b) Loan Terms.--
``(1) Principal.--Each loan made under this section shall
be in an amount that does not exceed 45 percent of the lesser
of--
``(A) the purchase price of the farm to be acquired;
``(B) the appraised value of the farm to be acquired; or
``(C) $667,000.
``(2) Interest rate.--The interest rate on any loan made by
the Secretary under this section shall be a rate equal to the
greater of--
``(A) the difference between--
``(i) 4 percent; and
``(ii) the interest rate for farm ownership loans under
this chapter; or
``(B) 1.5 percent.
``(3) Duration.--Each loan under this section shall be made
for a period of 20 years or less, at the option of the
borrower.
``(4) Repayment.--Each borrower of a loan under this
section shall repay the loan to the Secretary in equal annual
installments.
``(5) Nature of retained security interest.--The Secretary
shall retain an interest in each farm acquired with a loan
made under this section that shall--
``(A) be secured by the farm;
``(B) be junior only to such interests in the farm as may
be conveyed at the time of acquisition to the person
(including a lender) from whom the borrower obtained a loan
used to acquire the farm; and
``(C) require the borrower to obtain the permission of the
Secretary before the borrower may grant an additional
security interest in the farm.
``(c) Limitations.--
``(1) Borrowers required to make minimum down payment.--The
Secretary shall not make a loan under this section to any
borrower with respect to a farm if the contribution of the
borrower to the down payment on the farm will be less than 5
percent of the purchase price of the farm.
``(2) Prohibited types of financing.--The Secretary shall
not make a loan under this section with respect to a farm if
the farm is to be acquired with other financing that contains
any of the following conditions:
``(A) The financing is to be amortized over a period of
less than 30 years.
``(B) A balloon payment will be due on the financing during
the 20-year period beginning on the date on which the loan is
to be made by the Secretary.
``(d) Administration.--In carrying out this section, the
Secretary shall, to the maximum extent practicable--
``(1) facilitate the transfer of farms from retiring
farmers to persons eligible for insured loans under this
subtitle;
``(2) make efforts to widely publicize the availability of
loans under this section among--
``(A) potentially eligible recipients of the loans;
``(B) retiring farmers; and
``(C) applicants for farm ownership loans under this
chapter;
``(3) encourage retiring farmers to assist in the sale of
their farms to qualified beginning farmers and socially
disadvantaged farmers providing seller financing;
``(4) coordinate the loan program established by this
section with State programs that provide farm ownership or
operating loans for beginning farmers or socially
disadvantaged farmers; and
``(5) establish annual performance goals to promote the use
of the down payment loan program and other joint financing
arrangements as the preferred choice for direct real estate
loans made by any lender to a qualified beginning farmer or
socially disadvantaged farmer.
``SEC. 3108. BEGINNING FARMER AND SOCIALLY DISADVANTAGED
FARMER CONTRACT LAND SALES PROGRAM.
``(a) In General.--The Secretary shall, in accordance with
this section, guarantee a loan made by a private seller of a
farm to a qualified beginning farmer or socially
disadvantaged farmer on a contract land sales basis.
``(b) Eligibility.--To be eligible for a loan guarantee
under subsection (a)--
``(1) the qualified beginning farmer or socially
disadvantaged farmer shall--
``(A) on the date the contract land sale that is subject of
the loan is complete, own and operate the farm that is the
subject of the contract land sale;
``(B) have a credit history that--
``(i) includes a record of satisfactory debt repayment, as
determined by the Secretary; and
``(ii) is acceptable to the Secretary; and
``(C) demonstrate to the Secretary that the farmer is
unable to obtain sufficient credit without a guarantee to
finance any actual need of the farmer at a reasonable rate or
term; and
``(2) the loan shall meet applicable underwriting criteria,
as determined by the Secretary.
``(c) Limitations.--The Secretary shall not provide a loan
guarantee under subsection (a) if--
``(1) the contribution of the qualified beginning farmer or
socially disadvantaged farmer to the down payment for the
farm that is the subject of the contract land sale would be
less than 5 percent of the purchase price of the farm; or
``(2) the purchase price or the appraisal value of the farm
that is the subject of the contract land sale is greater than
$500,000.
``(d) Period of Guarantee.--A loan guarantee under this
section shall be in effect for the 10-year period beginning
on the date on which the guarantee is provided.
``(e) Guarantee Plan.--
``(1) Selection of plan.--A private seller of a farm who
makes a loan guaranteed by the Secretary under subsection (a)
may select--
``(A) a prompt payment guarantee plan, which shall cover--
``(i) 3 amortized annual installments; or
``(ii) an amount equal to 3 annual installments (including
an amount equal to the total cost of any tax and insurance
incurred during the period covered by the annual
installments); or
``(B) a standard guarantee plan, which shall cover an
amount equal to 90 percent of the outstanding principal of
the loan.
``(2) Eligibility for standard guarantee plan.--To be
eligible for a standard guarantee plan referred to in
paragraph (1)(B), a private seller shall--
``(A) secure a commercial lending institution or similar
entity, as determined by the Secretary, to serve as an escrow
agent; or
``(B) in cooperation with the farmer, use an appropriate
alternate arrangement, as determined by the Secretary.
``CHAPTER 2--OPERATING LOANS
``SEC. 3201. OPERATING LOANS.
``(a) In General.--The Secretary may make or guarantee an
operating loan under this chapter to an eligible farmer in
the United States.
``(b) Eligibility.--A farmer shall be eligible under
subsection (a) only--
``(1) if the farmer, or an individual holding a majority
interest in the farmer--
``(A) is a citizen of the United States; and
``(B) has training or farming experience that the Secretary
determines is sufficient to ensure a reasonable prospect of
success in the farming operation proposed by the farmer;
``(2) in the case of a farmer that is an individual, if the
farmer is or proposes to become an operator of a farm that is
not larger than a family farm;
``(3) in the case of a farmer that is a cooperative,
corporation, partnership, trust, limited liability company,
joint operation, or other such legal entity as the Secretary
determines to be appropriate, with respect to the entity and
each farm in which the entity has an ownership or operator
interest--
``(A) if--
``(i) a majority interest is held by individuals who are
related by blood or marriage, as defined by the Secretary;
``(ii) all of the individuals are or propose to become
owners or operators of a farm that is not larger than a
family farm; and
``(iii) at least 1 of the individuals is or proposes to
become an operator of the farm; or
``(B) if--
``(i) the entire interest is held by individuals who are
related by blood or marriage, as defined by the Secretary;
``(ii) all of the individuals are or propose to become farm
operators; and
``(iii) the ownership interest of each individual
separately constitutes not larger than a family farm, even if
the ownership interests of the individuals collectively
constitute larger than a family farm;
``(4) in the case of an operator described in paragraph (3)
that is owned, in whole or in part by 1 or more other
entities, if not less than 75 percent of the ownership
interests of each other entity is owned directly or
indirectly by 1 or more individuals who own the family farm;
and
``(5) if the farmer and each individual that holds a
majority interest in the farmer is unable to obtain credit
elsewhere.
``(c) Direct Loans.--
``(1) In general.--Subject to paragraph (3), the Secretary
may make a direct loan under this chapter only to a farmer
who--
``(A) is a qualified beginning farmer;
``(B) has not received a previous direct operating loan
made under this chapter; or
``(C) has not received a direct operating loan made under
this chapter for a total of 7 years, less 1 year for every 3
consecutive years the farmer did not receive a direct
operating loan after the year in which the borrower initially
received a direct operating loan under this chapter, as
determined by the Secretary.
``(2) Youth loans.--In this subsection, the term `direct
operating loan' shall not include a loan made to a youth
under subsection (d).
``(3) Transition rule.--If, as of April 4, 1996, a farmer
has received a direct operating loan under this chapter
during each of 4 or more previous years, the borrower shall
be eligible to receive a direct operating loan under this
chapter during 3 additional years after April 4, 1996.
``(4) Waivers.--
``(A) Farm operations on tribal land.--The Secretary shall
waive the limitation under paragraph (1)(C) or (3) for a
direct loan made under this chapter to a farmer whose farm
land is subject to the jurisdiction of an Indian tribe and
whose loan is secured by 1 or more security instruments that
are subject to the jurisdiction of an Indian tribe if the
Secretary determines that commercial credit is not generally
available for such farm operations.
``(B) Other farm operations.--On a case-by-case
determination not subject to administrative appeal, the
Secretary may grant a borrower a waiver, 1 time only for a
period of 2 years, of the limitation under paragraph (1)(C)
or (3) for a direct operating loan if the
[[Page S4039]]
borrower demonstrates to the satisfaction of the Secretary
that--
``(i) the borrower has a viable farm operation;
``(ii) the borrower applied for commercial credit from at
least 2 commercial lenders;
``(iii) the borrower was unable to obtain a commercial loan
(including a loan guaranteed by the Secretary); and
``(iv) the borrower successfully has completed, or will
complete within 1 year, borrower training under section 3419
(from which requirement the Secretary shall not grant a
waiver under section 3419(f)).
``(d) Youth Loans.--
``(1) In general.--Notwithstanding subsection (b), except
for citizenship and credit requirements, a loan may be made
under this chapter to a youth who is a rural resident to
enable the youth to operate an enterprise in connection with
the participation in a youth organization, as determined by
the Secretary.
``(2) Full personal liability.--A youth receiving a loan
under this subsection who executes a promissory note for the
loan shall incur full personal liability for the indebtedness
evidenced by the note, in accordance with the terms of the
note, free of any disability of minority.
``(3) Cosigner.--The Secretary may accept the personal
liability of a cosigner of a promissory note for a loan under
this subsection, in addition to the personal liability of the
youth borrower.
``(4) Youth enterprises not farming.--The operation of an
enterprise by a youth under this subsection shall not be
considered the operation of a farm under this subtitle.
``SEC. 3202. PURPOSES OF LOANS.
``(a) Direct Loans.--A direct loan may be made under this
chapter only--
``(1) to pay the costs incident to reorganizing a farm for
more profitable operation;
``(2) to purchase livestock, poultry, or farm equipment;
``(3) to purchase feed, seed, fertilizer, insecticide, or
farm supplies, or to meet other essential farm operating
expenses, including cash rent;
``(4) to finance land or water development, use, or
conservation;
``(5) to pay loan closing costs;
``(6) to assist a farmer in changing the equipment,
facilities, or methods of operation of a farm 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
that Act (29 U.S.C. 667), if the Secretary determines that
without assistance under this paragraph the farmer is likely
to suffer substantial economic injury in complying with the
standard;
``(7) to train a limited-resource borrower receiving a loan
under section 3106 in maintaining records of farming
operations;
``(8) to train a borrower under section 3419;
``(9) to refinance the indebtedness of a borrower, if the
borrower--
``(A) has refinanced a loan under this chapter 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 or major disaster or emergency; or
``(ii) is refinancing a debt obtained from a creditor other
than the Secretary; or
``(10) to provide other farm or home needs, including
family subsistence.
``(b) Guaranteed Loans.--A loan may be guaranteed under
this chapter only--
``(1) to pay the costs incident to reorganizing a farm for
more profitable operation;
``(2) to purchase livestock, poultry, or farm equipment;
``(3) to purchase feed, seed, fertilizer, insecticide, or
farm supplies, or to meet other essential farm operating
expenses, including cash rent;
``(4) to finance land or water development, use, or
conservation;
``(5) to refinance indebtedness;
``(6) to pay loan closing costs;
``(7) to assist a farmer in changing the equipment,
facilities, or methods of operation of a farm 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
that Act (29 U.S.C. 667), if the Secretary determines that
without assistance under this paragraph the farmer is likely
to suffer substantial economic injury due to compliance with
the standard;
``(8) to train a borrower under section 3419; or
``(9) to provide other farm or home needs, including family
subsistence.
``(c) Hazard Insurance Requirement.--The Secretary may not
make a loan to a farmer under this chapter unless the farmer
has, or agrees to obtain, hazard insurance on the property to
be acquired with the loan.
``(d) Private Reserve.--
``(1) In general.--Notwithstanding any other provision of
this title, the Secretary may reserve a portion of any loan
made under this chapter to be placed in an unsupervised bank
account that may be used at the discretion of the borrower
for the basic family needs of the borrower and the immediate
family of the borrower.
``(2) Limit on size of the reserve.--The size of the
reserve shall not exceed the lesser of--
``(A) 10 percent of the loan;
``(B) $5,000; or
``(C) the amount needed to provide for the basic family
needs of the borrower and the immediate family of the
borrower for 3 calendar months.
``SEC. 3203. RESTRICTIONS ON LOANS.
``(a) Requirements.--
``(1) In general.--The Secretary may not make or guarantee
a loan under this chapter--
``(A) that would cause the total principal indebtedness
outstanding at any 1 time for loans made under this chapter
to any 1 borrower to exceed--
``(i)(I) in the case of a loan made by the Secretary,
$300,000; or
``(II) in the case of a loan guaranteed by the Secretary,
$700,000 (as modified under paragraph (2)); or
``(B) for the purchasing or leasing of land other than for
cash rent, or for carrying on a land leasing or land
purchasing program.
``(2) Modification.--The amount specified in paragraph
(1)(A)(ii) shall be--
``(A) increased, beginning with fiscal year 2000, by the
inflation percentage applicable to the fiscal year in which
the loan is guaranteed; and
``(B) reduced by the unpaid indebtedness of the borrower on
loans under sections specified in section 3104 that are
guaranteed by the Secretary.
``(b) Inflation Percentage.--For purposes of this section,
the inflation percentage applicable to a fiscal year is the
percentage (if any) by which--
``(1) the average of the Prices Paid By Farmers Index (as
compiled by the National Agricultural Statistics Service of
the Department) for the 12-month period ending on August 31
of the immediately preceding fiscal year; exceeds
``(2) the average of that index (as so defined) for the 12-
month period ending on August 31, 1996.
``SEC. 3204. TERMS OF LOANS.
``(a) Personal Liability.--A borrower of a loan made under
this chapter shall secure the loan with the full personal
liability of the borrower and such other security as the
Secretary may prescribe.
``(b) Interest Rates.--
``(1) Maximum rate.--
``(A) In general.--Except as provided in paragraphs (2) and
(3), the interest rate on a loan made under this chapter
(other than a guaranteed loan) shall be determined by the
Secretary at a rate not to exceed the sum obtained by
adding--
``(i) the current average market yield on outstanding
marketable obligations of the United States with remaining
periods to maturity comparable to the average maturity of the
loan; and
``(ii) an additional charge not to exceed 1 percent, as
determined by the Secretary.
``(B) Adjustment.--The sum obtained under subparagraph (A)
shall be adjusted to the nearest \1/8\ of 1 percent.
``(2) Guaranteed loan.--The interest rate on a guaranteed
loan made under this chapter shall be such rate as may be
agreed on by the borrower and the lender, but may not exceed
any rate prescribed by the Secretary.
``(3) Low income loan.--The interest rate on a direct loan
made under this chapter to a low-income, limited-resource
borrower shall be determined by the Secretary at a rate that
is not--
``(A) greater than the sum obtained by adding--
``(i) an amount that does not exceed \1/2\ of the current
average market yield on outstanding marketable obligations of
the United States with a maturity of 5 years; and
``(ii) an amount not to exceed 1 percent per year, as the
Secretary determines is appropriate; or
``(B) less than 5 percent per year.
``(c) Period for Repayment.--The period for repayment of a
loan made under this chapter may not exceed 7 years.
``(d) Line-of-credit Loans.--
``(1) In general.--A loan made or guaranteed by the
Secretary under this chapter 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 an operating loan under this chapter, each year during
which a farmer takes an advance or draws on a line-of-credit
loan the farmer shall be considered as having received an
operating loan for 1 year.
``(4) Termination of delinquent loans.--If a borrower does
not pay an installment on a line-of-credit loan on schedule,
the borrower may not take an advance or draw on the line-of-
credit, unless the Secretary determines that--
``(A) the failure of the borrower to pay on schedule was
due to unusual conditions that the borrower could not
control; and
``(B) the borrower will reduce the line-of-credit balance
to the scheduled level at the end of--
``(i) the production cycle; or
``(ii) the marketing of the agricultural products of the
borrower.
``(5) Agricultural commodities.--A line-of-credit loan may
be used to finance the production or marketing of an
agricultural commodity that is eligible for a price support
program of the Department.
``CHAPTER 3--EMERGENCY LOANS
``SEC. 3301. EMERGENCY LOANS.
``(a) In General.--The Secretary shall make or guarantee an
emergency loan under
[[Page S4040]]
this chapter to an eligible farmer only to the extent and in
such amounts as provided in advance in appropriation Acts.
``(b) Eligibility.--An established farmer shall be eligible
under subsection (a) only--
``(1) if the farmer or an individual holding a majority
interest in the farmer--
``(A) is a citizen of the United States; and
``(B) has experience and resources that the Secretary
determines are sufficient to ensure a reasonable prospect of
success in the farming operation proposed by the farmer;
``(2) in the case of a farmer that is an individual, if the
farmer is--
``(A) in the case of a loan for a purpose under chapter 1,
an owner, operator, or lessee-operator described in section
3101(b)(2); and
``(B) in the case of a loan for a purpose under chapter 2,
an operator of a farm that is not larger than a family farm;
``(3) in the case of a farmer that is a cooperative,
corporation, partnership, trust, limited liability company,
joint operation, or such other legal entity as the Secretary
determines to be appropriate, with respect to the entity and
each farm in which the entity has an ownership or operator
interest--
``(A) if--
``(i) a majority interest is held by individuals who are
related by blood or marriage, as defined by the Secretary;
``(ii) all of the individuals are or propose to become
owners or operators of a farm that is not larger than a
family farm; and
``(iii) at least 1 of the individuals is or proposes to
become an operator of the farm; or
``(B) if--
``(i) the entire interest is held by individuals who are
related by blood or marriage, as defined by the Secretary;
``(ii) all of the individuals are or propose to become farm
operators; and
``(iii) the ownership interest of each individual
separately constitutes not larger than a family farm, even if
the ownership interests of the individuals collectively
constitute larger than a family farm;
``(4) if the entity is owned, in whole or in part, by 1 or
more other entities and each individual who is an owner of
the family farm involved has a direct or indirect ownership
interest in each of the other entities;
``(5) if the farmer and any individual that holds a
majority interest in the farmer is unable to obtain credit
elsewhere; and
``(6)(A) if the Secretary finds that the operations of the
farmer have been substantially affected by--
``(i) a natural or 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) a quarantine imposed by the Secretary under the
Plant Protection Act (7 U.S.C. 7701 et seq.) or the Animal
Health Protection Act (7 U.S.C. 8301 et seq.); or
``(B) if the farmer conducts farming operations in a county
or a county contiguous to a county in which the Secretary has
found that farming operations have been substantially
affected by a natural or major disaster or emergency.
``(c) Time for Accepting an Application.--The Secretary
shall accept an application for a loan under this chapter
from a farmer at any time during the 8-month period beginning
on the date that--
``(1) the Secretary determines that farming operations of
the farmer have been substantially affected by--
``(A) a quarantine imposed by the Secretary under the Plant
Protection Act (7 U.S.C. 7701 et seq.) or the Animal Health
Protection Act (7 U.S.C. 8301 et seq.); or
``(B) a natural disaster; or
``(2) the President makes a major disaster or emergency
designation with respect to the affected county of the farmer
referred to in subsection (b)(5)(B).
``(d) Hazard Insurance Requirement.--The Secretary may not
make a loan to a farmer under this chapter to cover a
property loss unless the farmer had hazard insurance that
insured the property at the time of the loss.
``(e) Family Farm.--The Secretary shall conduct the loan
program under this chapter in a manner that will foster and
encourage the family farm system of agriculture, consistent
with the reaffirmation of policy and declaration of the
intent of Congress contained in section 102(a) of the Food
and Agriculture Act of 1977 (7 U.S.C. 2266(a)).
``SEC. 3302. PURPOSES OF LOANS.
``Subject to the limitations on the amounts of loans
provided in section 3303(a), a loan may be made or guaranteed
under this chapter for--
``(1) any purpose authorized for a loan under chapter 1 or
2; and
``(2) crop or livestock purposes that are--
``(A) necessitated by a quarantine, natural disaster, major
disaster, or emergency; and
``(B) considered desirable by the farmer.
``SEC. 3303. TERMS OF LOANS.
``(a) Maximum Amount of Loan.--The Secretary may not make
or guarantee a loan under this chapter to a borrower who has
suffered a loss in an amount that--
``(1) exceeds the actual loss caused by a disaster; or
``(2) would cause the total indebtedness of the borrower
under this chapter to exceed $500,000.
``(b) Interest Rates.--Any portion of a loan under this
chapter up to the amount of the actual loss suffered by a
farmer caused by a disaster shall be at a rate prescribed by
the Secretary, but not in excess of 8 percent per annum.
``(c) Interest Subsidies for Guaranteed Loans.--In the case
of a guaranteed loan under this chapter, the Secretary may
pay an interest subsidy to the lender for any portion of the
loan up to the amount of the actual loss suffered by a farmer
caused by a disaster.
``(d) Time for Repayment.--
``(1) In general.--Subject to paragraph (2), a loan under
this chapter shall be repayable at such times as the
Secretary may determine, considering the purpose of the loan
and the nature and effect of the disaster, but not later than
the maximum repayment period allowed for a loan for a similar
purpose under chapters 1 and 2.
``(2) Extended repayment period.--The Secretary may, if the
loan is for a purpose described in chapter 2 and the
Secretary determines that the need of the loan applicant
justifies the longer repayment period, make the loan
repayable at the end of a period of more than 7 years, but
not more than 20 years.
``(e) Security for Loan.--
``(1) In general.--A borrower of a loan made under this
chapter shall secure the loan with the full personal
liability of the borrower and such other security as the
Secretary may prescribe.
``(2) Adequate security.--Subject to paragraph (3), the
Secretary may not make or guarantee a loan under this chapter
unless the security for the loan is adequate to ensure
repayment of the loan.
``(3) Inadequate security due to disaster.--If adequate
security for a loan under this chapter is not available
because of a disaster, the Secretary shall accept as security
any collateral that is available if the Secretary is
confident that the collateral and the repayment ability of
the farmer are adequate security for the loan.
``(4) Valuation of farm assets.--If a farm asset (including
land, livestock, or equipment) is used as collateral to
secure a loan applied for under this chapter and the governor
of the State in which the farm is located requests assistance
under this chapter or the Robert T. Stafford Disaster Relief
and Emergency Assistance Act (42 U.S.C. 5121 et seq.) for the
portion of the State in which the asset is located, the
Secretary shall establish the value of the asset as of the
day before the occurrence of the natural or major disaster or
emergency.
``(f) Review of Loan.--
``(1) In general.--In the case of a loan made, but not
guaranteed, under section 3301, the Secretary shall review
the loan 3 years after the loan is made, and every 2 years
thereafter for the term of the loan.
``(2) Termination of federal assistance.--If, based on a
review under paragraph (1), the Secretary determines that the
borrower is able to obtain a loan from a non-Federal source
at reasonable rates and terms, the borrower shall, on request
by the Secretary, apply for, and accept, a non-Federal loan
in a sufficient amount to repay the Secretary.
``SEC. 3304. PRODUCTION LOSSES.
``(a) In General.--The Secretary shall make or guarantee a
loan under this chapter to an eligible farmer for production
losses if a single enterprise that constitutes a basic part
of the farming operation of the farmer has sustained at least
a 30 percent loss in normal per acre or per animal
production, or such lesser percentage as the Secretary may
determine, as a result of a disaster.
``(b) Basis for Percentage.--A percentage loss under
subsection (a) shall be based on the average monthly price in
effect for the previous crop or calendar year, as
appropriate.
``(c) Amount of Loan.--A loan under subsection (a) shall be
in an amount that is equal to 80 percent, or such greater
percentage as the Secretary may determine, of the total
calculated actual production loss sustained by the farmer.
``CHAPTER 4--GENERAL FARMER LOAN PROVISIONS
``SEC. 3401. AGRICULTURAL CREDIT INSURANCE FUND.
``The fund established pursuant to section 11(a) of the
Bankhead-Jones Farm Tenant Act (60 Stat. 1075, chapter 964)
shall be known as the Agricultural Credit Insurance Fund
(referred to in this section as the `Fund', unless the
context otherwise requires) for the discharge of the
obligations of the Secretary under agreements insuring loans
under this subtitle and loans and mortgages insured under
prior authority.
``SEC. 3402. GUARANTEED FARMER LOANS.
``(a) In General.--The Secretary may provide financial
assistance to a borrower for a purpose provided in this
subtitle by guaranteeing a loan made by any Federal or State
chartered bank, savings and loan association, cooperative
lending agency, or other legally organized lending agency.
``(b) Interest Rate.--The interest rate payable by a
borrower on the portion of a guaranteed loan that is sold by
a lender to the secondary market under this subtitle may be
lower than the interest rate charged on the portion retained
by the lender, but shall not exceed the average interest rate
charged by the lender on loans made to farm borrowers.
``(c) Fees.--In the case of a loan guarantee on a loan made
by a commercial or cooperative lender related to a loan made
by the Secretary under section 3107--
``(1) the Secretary shall not charge a fee to any person
(including a lender); and
[[Page S4041]]
``(2) a lender may charge a loan origination and servicing
fee in an amount not to exceed 1 percent of the amount of the
loan.
``(d) Maximum Guarantee of 90 Percent.--Except as provided
in subsections (e) and (f), a loan guarantee under this
subtitle shall be for not more than 90 percent of the
principal and interest due on the loan.
``(e) Refinanced Loans Guaranteed at 95 Percent.--The
Secretary shall guarantee 95 percent of--
``(1) in the case of a loan that solely refinances a direct
loan made under this subtitle, the principal and interest due
on the loan on the date of the refinancing; or
``(2) 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
subtitle that is outstanding on the date the loan is
guaranteed.
``(f) Beginning Farmer Loans Guaranteed up to 95 Percent.--
The Secretary may guarantee not more than 95 percent of--
``(1) a farm ownership loan for acquiring a farm to a
borrower who is participating in the downpayment loan program
under section 3107; or
``(2) an operating loan to a borrower who is participating
in the downpayment loan program under section 3107 that is
made during the period that the borrower has a direct loan
outstanding under chapter 1 for acquiring a farm.
``(g) Guarantee of Loans Made Under State Beginning Farmer
Programs.--The Secretary may guarantee under this subtitle a
loan made under a State beginning farmer program, including a
loan financed by the net proceeds of a qualified small issue
agricultural bond for land or property described in section
144(a)(12)(B)(ii) of the Internal Revenue Code of 1986.
``SEC. 3403. PROVISION OF INFORMATION TO BORROWERS.
``(a) Approval Notification.--The Secretary shall approve
or disapprove an application for a loan or loan guarantee
made under this subtitle, and notify the applicant of such
action, not later than 60 days after the date on which the
Secretary has received a complete application for the loan or
loan guarantee.
``(b) List of Lenders.--The Secretary shall make available
to any farmer, on request, a list of lenders in the area that
participate in guaranteed farmer program loan programs
established under this subtitle, and other lenders in the
area that express a desire to participate in the programs and
that request inclusion on the list.
``(c) Other Information.--
``(1) In general.--On the request of a borrower, the
Secretary shall make available to the borrower--
``(A) a copy of each document signed by the borrower;
``(B) a copy of each appraisal performed with respect to
the loan; and
``(C) any document that the Secretary is required to
provide to the borrower under any law in effect on the date
of the request.
``(2) Rule of construction.--Paragraph (1) shall not
supersede any duty imposed on the Secretary by a law in
effect on January 5, 1988, unless the duty directly conflicts
with a duty under paragraph (1).
``SEC. 3404. NOTICE OF LOAN SERVICE PROGRAMS.
``(a) Requirement.--The Secretary shall provide notice by
certified mail to each borrower who is at least 90 days past
due on the payment of principal or interest on a loan made
under this subtitle.
``(b) Contents.--The notice required under subsection (a)
shall--
``(1) include a summary of all primary loan service
programs, homestead retention programs, debt settlement
programs, and appeal procedures, including the eligibility
criteria, and terms and conditions of the programs and
procedures;
``(2) include a summary of the manner in which the borrower
may apply, and be considered, for all such programs, except
that the Secretary shall not require the borrower to select
among the programs or waive any right to be considered for
any program carried out by the Secretary;
``(3) advise the borrower regarding all filing requirements
and any deadlines that must be met for requesting loan
servicing;
``(4) provide any relevant forms, including applicable
response forms;
``(5) advise the borrower that a copy of regulations is
available on request; and
``(6) be designed to be readable and understandable by the
borrower.
``(c) Contained in Regulations.--All notices required by
this section shall be contained in the regulations issued to
carry out this title.
``(d) Timing.--The notice described in subsection (b) shall
be provided--
``(1) at the time an application is made for participation
in a loan service program;
``(2) on written request of the borrower; and
``(3) before the earliest of the date of--
``(A) initiating any liquidation;
``(B) requesting the conveyance of security property;
``(C) accelerating the loan;
``(D) repossessing property;
``(E) foreclosing on property; or
``(F) taking any other collection action.
``(e) Consideration of Borrowers for Loan Service
Programs.--
``(1) In general.--The Secretary shall consider a farmer
program loan borrower for all loan service programs if, not
later than 60 days after receipt of the notice described in
subsection (b), the borrower requests the consideration in
writing.
``(2) Priority.--In considering a borrower for a loan
service program, the Secretary shall place the highest
priority on the preservation of the farming operations of the
borrower.
``SEC. 3405. PLANTING AND PRODUCTION HISTORY GUIDELINES.
``(a) In General.--The Secretary shall ensure that
appropriate procedures, including, to the extent practicable,
onsite inspections, or use of county or State yield averages,
are used in calculating future yields for an applicant for a
loan, when an accurate projection cannot be made because the
past production history of the farmer has been affected by a
natural or major disaster or emergency.
``(b) Calculation of Yields.--
``(1) In general.--For the purpose of averaging the past
yields of the farm of a farmer over a period of crop years to
calculate the future yield of the farm under this title, the
Secretary shall permit the farmer to exclude the crop year
with the lowest actual or county average yield for the farm
from the calculation, if the farmer was affected by a natural
or major disaster or emergency during at least 2 of the crop
years during the period.
``(2) Affected by a natural or major disaster or
emergency.--A farmer was affected by a natural or major
disaster or emergency under paragraph (1) if the Secretary
finds that the farming operations of the farmer have been
substantially affected by a natural or major disaster or
emergency, including a farmer who has a qualifying loss but
is not located in a designated or declared disaster area.
``(3) Application of subsection.--This subsection shall
apply to any action taken by the Secretary that involves--
``(A) a loan under chapter 1 or 2; and
``(B) the yield of a farm of a farmer, including making a
loan or loan guarantee, servicing a loan, or making a credit
sale.
``SEC. 3406. SPECIAL CONDITIONS AND LIMITATIONS ON LOANS.
``(a) Applicant Requirements.--In connection with a loan
made or guaranteed under this subtitle, the Secretary shall
require--
``(1) the applicant--
``(A) to certify in writing that, and the Secretary shall
determine whether, the applicant is unable to obtain credit
elsewhere; and
``(B) to furnish an appropriate written financial
statement;
``(2) except for a guaranteed loan, an agreement by the
borrower that if at any time it appears to the Secretary that
the borrower may be able to obtain a loan from a production
credit association, a Federal land bank, or other responsible
cooperative or private credit source (or, in the case of a
borrower under section 3106, the borrower may be able to
obtain a loan under section 3101), at reasonable rates and
terms for loans for similar purposes and periods of time, the
borrower will, on request by the Secretary, apply for and
accept the loan in a sufficient amount to repay the Secretary
or the insured lender, or both, and to pay for any stock
necessary to be purchased in a cooperative lending agency in
connection with the loan;
``(3) such provision for supervision of the operations of
the borrower as the Secretary shall consider necessary to
achieve the objectives of the loan and protect the interests
of the United States; and
``(4) the application of a person who is a veteran for a
loan under chapter 1 or 2 to be given preference over a
similar application from a person who is not a veteran if the
applications are on file in a county or area office at the
same time.
``(b) Agency Processing Requirements.--
``(1) Notifications.--
``(A) Incomplete application notification.--If an
application for a loan or loan guarantee under this subtitle
(other than an operating loan or loan guarantee) is
incomplete, the Secretary shall inform the applicant of the
reasons the application is incomplete not later than 20 days
after the date on which the Secretary has received the
application.
``(B) Operating loans.--
``(i) Additional information needed.--Not later than 10
calendar days after the Secretary receives an application for
an operating loan or loan guarantee, the Secretary shall
notify the applicant of any information required before a
decision may be made on the application.
``(ii) Information not received.--If, not later than 20
calendar days after the date a request is made pursuant to
clause (i) with respect to an application, the Secretary has
not received the information requested, the Secretary shall
notify the applicant and the district office of the Farm
Service Agency, in writing, of the outstanding information.
``(C) Request information.--
``(i) In general.--On receipt of an application, the
Secretary shall request from other parties such information
as may be needed in connection with the application.
``(ii) Information from an agency of the department.--Not
later than 15 calendar days after the date on which an agency
of the Department receives a request for information made
pursuant to subparagraph (A), the agency shall provide the
Secretary with the requested information.
``(2) Report of pending applications.--
``(A) In general.--A county office shall notify the
district office of the Farm Service Agency of each
application for an operating loan or loan guarantee that is
pending more
[[Page S4042]]
than 45 days after receipt, and the reasons for which the
application is pending.
``(B) Action on pending applications.--A district office
that receives a notice provided under subparagraph (A) with
respect to an application shall immediately take steps to
ensure that final action is taken on the application not
later than 15 days after the date of the receipt of the
notice.
``(C) Pending application report.--The district office
shall report to the State office of the Farm Service Agency
on each application for an operating loan or loan guarantee
that is pending more than 45 days after receipt, and the
reasons for which the application is pending.
``(D) Report to congress.--Each month, the Secretary shall
notify the Committee on Agriculture of the House of
Representatives and the Committee on Agriculture, Nutrition,
and Forestry of the Senate, on a State-by-State basis, as to
each application for an operating loan or loan guarantee on
which final action had not been taken within 60 calendar days
after receipt by the Secretary, and the reasons for which
final action had not been taken.
``(3) Disapprovals.--
``(A) In general.--If an application for a loan or loan
guarantee under this subtitle is disapproved by the
Secretary, the Secretary shall state the reasons for the
disapproval in the notice required under paragraph (1).
``(B) Disapproval due to lack of funds.--
``(i) In general.--Notwithstanding paragraph (1), each
application for a loan or loan guarantee under section
3601(e), or for a loan under section 3501(a) or 3502(a), that
is to be disapproved by the Secretary solely because the
Secretary lacks the funds necessary to make the loan or
guarantee shall not be disapproved but shall be placed in
pending status.
``(ii) Reconsideration.--The Secretary shall retain each
pending application and reconsider the application beginning
on the date that sufficient funds become available.
``(iii) Notification.--Not later than 60 days after funds
become available regarding each pending application, the
Secretary shall notify the applicant of the approval or
disapproval of funding for the application.
``(4) Approvals on appeal.--If an application for a loan or
loan guarantee under this subtitle is disapproved by the
Secretary, but that action is subsequently reversed or
revised as the result of an appeal within the Department or
to the courts of the United States and the application is
returned to the Secretary for further consideration, the
Secretary shall act on the application and provide the
applicant with notice of the action not later than 15 days
after the date of return of the application to the Secretary.
``(5) Provision of proceeds.--
``(A) In general.--Except as provided in subparagraph (B),
if an application for an insured loan under this title is
approved by the Secretary, the Secretary shall provide the
loan proceeds to the applicant not later than 15 days (or
such longer period as the applicant may approve) after the
application for the loan is approved by the Secretary.
``(B) Lack of funds.--If the Secretary is unable to provide
the loan proceeds to the applicant during the 15-day period
described in subparagraph (A) because sufficient funds are
not available to the Secretary for that purpose, the
Secretary shall provide the loan proceeds to the applicant as
soon as practicable (but in no event later than 15 days
unless the applicant agrees to a longer period) after
sufficient funds for that purpose become available to the
Secretary.
``SEC. 3407. GRADUATION OF BORROWERS.
``(a) Graduation of Seasoned Direct Loan Borrowers to the
Loan Guarantee Program.--
``(1) Review of loans.--
``(A) In general.--The Secretary, or a contracting third
party, shall annually review under section 3420 the loans of
each seasoned direct loan borrower.
``(B) Assistance.--If, based on the review, it is
determined that a borrower would be able to obtain a loan,
guaranteed by the Secretary, from a commercial or cooperative
lender at reasonable rates and terms for loans for similar
purposes and periods of time, the Secretary shall assist the
borrower in applying for the commercial or cooperative loan.
``(2) Prospectus.--
``(A) In general.--In accordance with section 3422, the
Secretary shall prepare a prospectus on each seasoned direct
loan borrower determined eligible to obtain a guaranteed
loan.
``(B) Requirements.--The prospectus shall contain a
description of the amounts of the loan guarantee and interest
assistance that the Secretary will provide to the seasoned
direct loan borrower to enable the seasoned direct loan
borrower to carry out a financially viable farming plan if a
guaranteed loan is made.
``(3) Verification.--
``(A) In general.--The Secretary shall provide a prospectus
of a seasoned direct loan borrower to each approved lender
whose lending area includes the location of the seasoned
direct loan borrower.
``(B) Notification.--The Secretary shall notify each
borrower of a loan that a prospectus has been provided to a
lender under subparagraph (A).
``(C) Credit extended.--If the Secretary receives an offer
from an approved lender to extend credit to the seasoned
direct loan borrower under terms and conditions contained in
the prospectus, the seasoned direct loan borrower shall not
be eligible for a loan from the Secretary under chapter 1 or
2, except as otherwise provided in this section.
``(4) Insufficient assistance or offers.--If the Secretary
is unable to provide loan guarantees and, if necessary,
interest assistance to the seasoned direct loan borrower
under this section in amounts sufficient to enable the
seasoned direct loan borrower to borrow from commercial
sources the amount required to carry out a financially viable
farming plan, or if the Secretary does not receive an offer
from an approved lender to extend credit to a seasoned direct
loan borrower under the terms and conditions contained in the
prospectus, the Secretary shall make a loan to the seasoned
direct loan borrower under chapter 1 or 2, whichever is
applicable.
``(5) Interest rate reductions.--To the extent necessary
for the borrower to obtain a loan, guaranteed by the
Secretary, from a commercial or cooperative lender, the
Secretary shall provide interest rate reductions as provided
for under section 3413.
``(b) Transition to Private Commercial or Other Sources of
Credit.--
``(1) In general.--In making an operating or ownership
loan, the Secretary shall establish a plan and promulgate
regulations (including performance criteria) that promote the
goal of transitioning borrowers to private commercial credit
and other sources of credit in the shortest period of time
practicable.
``(2) Coordination.--In carrying out this section, the
Secretary shall integrate and coordinate the transition
policy described in subsection (a) with--
``(A) the borrower training program established by section
3419;
``(B) the loan assessment process established by section
3420;
``(C) the supervised credit requirement established by
section 3421;
``(D) the market placement program established by section
3422; and
``(E) other appropriate programs and authorities, as
determined by the Secretary.
``(c) Graduation of Borrowers With Operating Loans or
Guarantees to Private Commercial Credit.--The Secretary shall
establish a plan, in coordination with activities under
sections 3419 through 3422, to encourage each borrower with
an outstanding loan under this chapter, or with respect to
whom there is an outstanding guarantee under this chapter, to
graduate to private commercial or other sources of credit.
``SEC. 3408. DEBT ADJUSTMENT AND CREDIT COUNSELING.
``In carrying out this subtitle, the Secretary may--
``(1) provide voluntary debt adjustment assistance
between--
``(A) farmers; and
``(B) the creditors of the farmers;
``(2) cooperate with State, territorial, and local agencies
and committees engaged in the debt adjustment; and
``(3) give credit counseling.
``SEC. 3409. SECURITY SERVICING.
``(a) Sale of Property.--
``(1) In general.--Subject to this subsection and
subsection (e)(1), the Secretary shall offer to sell real
property that is acquired by the Secretary under this
subtitle using the following order and method of sale:
``(A) Advertisement.--Not later than 15 days after
acquiring real property, the Secretary shall publicly
advertise the property for sale.
``(B) Qualified beginning farmer.--
``(i) In general.--Not later than 75 days after acquiring
real property, the Secretary shall offer to sell the property
to a qualified beginning farmer or a socially disadvantaged
farmer at current market value based on a current appraisal.
``(ii) Random selection.--If more than 1 qualified
beginning farmer or socially disadvantaged farmer 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 qualified beginning farmer or a
socially disadvantaged farmer 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 a socially disadvantaged
farmer under subparagraph (B) not later than 135 days after
acquiring the real property, the Secretary shall, not later
than 30 days after the 135-day period, 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) Interest.--
``(A) In general.--Subject to subparagraph (B), any
conveyance of real property under this subsection shall
include all of the interest of the United States in the
property, including mineral rights.
``(B) Conservation.--The Secretary may for conservation
purposes grant or sell an easement, restriction, development
right, or similar legal right to real property to a State, a
political subdivision of a State, or a private nonprofit
organization separately from the underlying fee or other
rights to the property owned by the United States.
``(3) Other law.--Subtitle I of title 40, United States
Code, and title III of the Federal Property and
Administrative Services Act of 1949 (41 U.S.C. 251 et seq.)
shall not apply to any exercise of authority under this
subtitle.
``(4) Lease of property.--
[[Page S4043]]
``(A) In general.--Subject to subparagraph (B), the
Secretary may not lease any real property acquired under this
subtitle.
``(B) Exception.--
``(i) Qualified beginning farmer or socially disadvantaged
farmer.--The Secretary may lease or contract to sell to a
qualified beginning farmer or a socially disadvantaged farmer
a farm acquired by the Secretary under this subtitle if the
qualified beginning farmer qualifies for a credit sale or
direct farm ownership loan under chapter 1 but credit sale
authority for loans or direct farm ownership loan funds,
respectively, are not available.
``(ii) Term.--The term of a lease or contract to sell to a
qualified beginning farmer or a socially disadvantaged farmer
under clause (i) shall be until the earlier of--
``(I) the date that is 18 months after the date of the
lease or sale; or
``(II) the date that direct farm ownership loan funds or
credit sale authority for loans becomes available to the
qualified beginning farmer or socially disadvantaged farmer.
``(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.
``(5) Expedited determination.--
``(A) In general.--On the request of an applicant, not
later than 30 days after denial of the application, the
appropriate State director shall provide an expedited review
and determination of whether the applicant is a qualified
beginning farmer or a socially disadvantaged farmer for the
purpose of acquiring farm inventory property.
``(B) Appeal.--The determination of a State Director under
subparagraph (A) shall be final and not administratively
appealable.
``(C) Effects of determinations.--
``(i) In general.--The Secretary shall maintain statistical
data on the number and results of determinations made under
subparagraph (A) and the effect of the determinations on--
``(I) selling farm inventory property to qualified
beginning farmers or socially disadvantaged farmers; and
``(II) disposing of real property in inventory.
``(ii) Notification.--The Secretary shall notify the
Committee on Agriculture of the House of Representatives and
the Committee on Agriculture, Nutrition, and Forestry of the
Senate if the Secretary determines that the review process
under subparagraph (A) is adversely affecting the selling of
farm inventory property to qualified beginning farmers or
socially disadvantaged farmers or the disposing of real
property in inventory.
``(b) Road and Utility Easements and Condemnations.--In the
case of any real property administered under this subtitle,
the Secretary may grant or sell easements or rights-of-way
for roads, utilities, and other appurtenances that are not
inconsistent with the public interest.
``(c) Sale or Lease of Farmland.--
``(1) Disposition of real property on indian
reservations.--
``(A) Definition of indian reservation.--In this paragraph,
the term `Indian reservation' means--
``(i) all land located within the limits of any Indian
reservation under the jurisdiction of the United States,
notwithstanding the issuance of any patent, and, including
any right-of-way running through the reservation;
``(ii) trust or restricted land located within the
boundaries of a former reservation of an Indian tribe in the
State of Oklahoma; or
``(iii) all Indian allotments the Indian titles to which
have not been extinguished if the allotments are subject to
the jurisdiction of an Indian tribe.
``(B) Disposition.--Except as provided in paragraph (3),
the Secretary shall dispose of or administer the property as
provided in this paragraph when--
``(i) the Secretary acquires property under this subtitle
that is located within an Indian reservation; and
``(ii) the borrower-owner is the Indian tribe that has
jurisdiction over the reservation in which the real property
is located or the borrower-owner is a member of the Indian
tribe;
``(C) Priority.--Not later than 90 days after acquiring the
property, the Secretary shall afford an opportunity to
purchase or lease the real property in accordance with the
order of priority established under subparagraph (D) to the
Indian tribe having jurisdiction over the Indian reservation
within which the real property is located or, if no order of
priority is established by the Indian tribe under
subparagraph (D), in the following order:
``(i) An Indian member of the Indian tribe that has
jurisdiction over the reservation within which the real
property is located.
``(ii) An Indian corporate entity.
``(iii) The Indian tribe.
``(D) Revision of priority and restriction of
eligibility.--The governing body of any Indian tribe having
jurisdiction over an Indian reservation may revise the order
of priority provided in subparagraph (C) under which land
located within the reservation shall be offered for purchase
or lease by the Secretary under subparagraph (C) and may
restrict the eligibility for the purchase or lease to--
``(i) persons who are members of the Indian tribe;
``(ii) Indian corporate entities that are authorized by the
Indian tribe to lease or purchase land within the boundaries
of the reservation; or
``(iii) the Indian tribe itself.
``(E) Transfer of property to secretary of the interior.--
``(i) In general.--If real property described in
subparagraph (B) is not purchased or leased under
subparagraph (C) and the Indian tribe having jurisdiction
over the reservation within which the real property is
located is unable to purchase or lease the real property, the
Secretary shall transfer the real property to the Secretary
of the Interior who shall administer the real property as if
the real property were held in trust by the United States for
the benefit of the Indian tribe.
``(ii) Use of rental income.--From the rental income
derived from the lease of the transferred real property, and
all other income generated from the transferred real
property, the Secretary of the Interior shall pay the State,
county, municipal, or other local taxes to which the
transferred real property was subject at the time of
acquisition by the Secretary, until the earlier of--
``(I) the expiration of the 4-year period beginning on the
date on which the real property is so transferred; or
``(II) such time as the land is transferred into trust
pursuant to subparagraph (H).
``(F) Responsibilities of secretaries.--If any real
property is transferred to the Secretary of the Interior
under subparagraph (E)--
``(i) the Secretary of Agriculture shall have no further
responsibility under this title for--
``(I) collection of any amounts with regard to the farm
program loan that had been secured by the real property;
``(II) any lien arising out of the loan transaction; or
``(III) repayment of any amount with regard to the loan
transaction or lien to the Treasury of the United States; and
``(ii) the Secretary of the Interior shall succeed to all
right, title, and interest of the Secretary of Agriculture in
the real estate arising from the farm program loan
transaction, including the obligation to remit to the
Treasury of the United States, in repayment of the original
loan, the amounts provided in subparagraph (G).
``(G) Use of income.--After the payment of any taxes that
are required to be paid under subparagraph (E)(ii), all
remaining rental income derived from the lease of the real
property transferred to the Secretary of the Interior under
subparagraph (E)(i), and all other income generated from the
real property transferred to the Secretary of the Interior
under that subparagraph, shall be deposited as miscellaneous
receipts in the Treasury of the United States until the
amount deposited is equal to the lesser of--
``(i) the amount of the outstanding lien of the United
States against the real property, as of the date the real
property was acquired by the Secretary;
``(ii) the fair market value of the real property, as of
the date of the transfer to the Secretary of the Interior; or
``(iii) the capitalized value of the real property, as of
the date of the transfer to the Secretary of the Interior.
``(H) Holding of title in trust.--If the total amount that
is required to be deposited under subparagraph (G) with
respect to any real property has been deposited into the
Treasury of the United States, title to the real property
shall be held in trust by the United States for the benefit
of the Indian tribe having jurisdiction over the Indian
reservation within which the real property is located.
``(I) Payment of remaining lien or fair market value of
property.--
``(i) In general.--Notwithstanding any other subparagraph
of this paragraph, the Indian tribe having jurisdiction over
the Indian reservation within which the real property
described in subparagraph (B) is located may, at any time
after the real property has been transferred to the Secretary
of the Interior under subparagraph (E), offer to pay the
remaining amount on the lien or the fair market value of the
real property, whichever is less.
``(ii) Effect of payment.--On payment of the amount, title
to the real property shall be held by the United States in
trust for the tribe and the trust or restricted land that has
been acquired by the Secretary under foreclosure or voluntary
transfer under a loan made or insured under this subtitle and
transferred to an Indian person, entity, or tribe under this
paragraph shall be considered to have never lost trust or
restricted status.
``(J) Applicability.--
``(i) In general.--This paragraph shall apply to all land
in the land inventory established under this subtitle (as of
November 28, 1990) that was (immediately prior to the date)
owned by an Indian borrower-owner described in subparagraph
(B) and that is situated within an Indian reservation,
regardless of the date of foreclosure or acquisition by the
Secretary.
``(ii) Opportunity to purchase or lease.--The Secretary
shall afford an opportunity to an Indian person, entity, or
tribe to purchase or lease the real property as provided in
subparagraph (C).
``(iii) Transfer.--If the right is not exercised or no
expression of intent to exercise the right is received within
180 days after November 28, 1990, the Secretary shall
transfer the real property to the Secretary of the Interior
as provided in subparagraph (E).
[[Page S4044]]
``(2) Additional rights.--The rights provided in this
subsection shall be in addition to any right of first refusal
under the law of the State in which the property is located.
``(3) Disposition of real property on indian reservations
after procedures exhausted.--
``(A) In general.--The Secretary shall dispose of or
administer real property described in paragraph (1)(B) only
as provided in paragraph (1), as modified by this paragraph,
if--
``(i) the real property described in paragraph (1)(B) is
located within an Indian reservation;
``(ii) the borrower-owner is an Indian tribe that has
jurisdiction over the reservation in which the real property
is located or the borrower-owner is a member of an Indian
tribe;
``(iii) the borrower-owner has obtained a loan made or
guaranteed under this title; and
``(iv) the borrower-owner and the Secretary have exhausted
all of the procedures provided for in this title to permit a
borrower-owner to retain title to the real property, so that
it is necessary for the borrower-owner to relinquish title.
``(B) Notice of right to convey property.--The Secretary
shall provide the borrower-owner of real property that is
described in subparagraph (A) with written notice of--
``(i) the right of the borrower-owner to voluntarily convey
the real property to the Secretary; and
``(ii) the fact that real property so conveyed will be
placed in the inventory of the Secretary.
``(C) Notice of rights and protections.--The Secretary
shall provide the borrower-owner of the real property with
written notice of the rights and protections provided under
this title to the borrower-owner, and the Indian tribe that
has jurisdiction over the reservation in which the real
property is located, from foreclosure or liquidation of the
real property, including written notice--
``(i) of paragraph (1), this paragraph, and subsection
(e)(3);
``(ii) if the borrower-owner does not voluntarily convey
the real property to the Secretary, that--
``(I) the Secretary may foreclose on the property;
``(II) in the event of foreclosure, the property will be
offered for sale;
``(III) the Secretary shall offer a bid for the property
that is equal to the fair market value of the property or the
outstanding principal and interest of the loan, whichever is
higher;
``(IV) the property may be purchased by another party; and
``(V) if the property is purchased by another party, the
property will not be placed in the inventory of the Secretary
and the borrower-owner will forfeit the rights and
protections provided under this title; and
``(iii) of the opportunity of the borrower-owner to consult
with the Indian tribe that has jurisdiction over the
reservation in which the real property is located or counsel
to determine if State or tribal law provides rights and
protections that are more beneficial than the rights and
protections provided the borrower-owner under this title.
``(D) Acceptance of voluntary conveyance.--
``(i) In general.--Except as provided in clause (ii), the
Secretary shall accept the voluntary conveyance of real
property described in subparagraph (A).
``(ii) Hazardous substances.--If a hazardous substance (as
defined in section 101(14) of the Comprehensive Environmental
Response, Compensation, and Liability Act of 1980 (42 U.S.C.
9601(14))) is located on the property and the Secretary takes
remedial action to protect human health or the environment if
the property is taken into inventory, the Secretary shall
accept the voluntary conveyance of the property only if the
Secretary determines that the conveyance is in the best
interests of the Federal Government.
``(E) Foreclosure procedures.--
``(i) Notice to borrower.--If an Indian borrower-owner does
not voluntarily convey to the Secretary real property
described in subparagraph (A), not less than 30 days before a
foreclosure sale of the property, the Secretary shall provide
the Indian borrower-owner with the option of--
``(I) requiring the Secretary to assign the loan and
security instruments to the Secretary of the Interior, if the
Secretary of the Interior agrees to an assignment releasing
the Secretary of Agriculture from all further responsibility
for collection of any amounts with regard to the loan secured
by the real property; or
``(II) requiring the Secretary to assign the loan and
security instruments to the tribe having jurisdiction over
the reservation in which the real property is located, if the
tribe agrees to assume the loan under the terms specified in
clause (iii).
``(ii) Notice to tribe.--If an Indian borrower-owner does
not voluntarily convey to the Secretary real property
described in subparagraph (A), 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--
``(I) the sale;
``(II) the fair market value of the property; and
``(III) the requirements of this paragraph.
``(iii) Assumed loans.--If an Indian tribe assumes a loan
under clause (i)--
``(I) the Secretary shall not foreclose the loan because of
any default that occurred prior to the date of the
assumption;
``(II) 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
``(III) the loan shall be treated as though the loan was
made under Public Law 91 229 (25 U.S.C. 488 et seq.).
``(F) Amount of bid by secretary.--
``(i) In general.--Except as provided in clause (ii), at a
foreclosure sale of real property described in subparagraph
(A), the Secretary shall offer a bid for the property that is
equal to the higher of--
``(I) the fair market value of the property; or
``(II) the outstanding principal and interest on the loan.
``(ii) Hazardous substances.--If a hazardous substance (as
defined in section 101(14) of the Comprehensive Environmental
Response, Compensation, and Liability Act of 1980 (42 U.S.C.
9601(14))) is located on the property and the Secretary takes
remedial action to protect human health or the environment if
the property is taken into inventory, clause (i) shall apply
only if the Secretary determines that bidding is in the best
interests of the Federal Government.
``(4) Detrimental effect on value of area farmland.--The
Secretary shall not offer for sale or sell any farmland
referred to in paragraphs (1) through (3) if placing the
farmland on the market will have a detrimental effect on the
value of farmland in the area.
``(5) Installment sales and multiple operators.--
``(A) In general.--The Secretary may sell farmland
administered under this title through an installment sale or
similar device that contains such terms as the Secretary
considers necessary to protect the investment of the Federal
Government in the land.
``(B) Sale of contract.--The Secretary may subsequently
sell any contract entered into to carry out subparagraph (A).
``(6) Highly erodible land.--In the case of farmland
administered under this title that is highly erodible land
(as defined in section 1201 of the Food Security Act of 1985
(16 U.S.C. 3801)), the Secretary may require the use of
specified conservation practices on the land as a condition
of the sale or lease of the land.
``(7) No effect on acreage allotments, marketing quotas, or
acreage bases.--Notwithstanding any other law, compliance by
the Secretary with this subsection shall not cause any
acreage allotment, marketing quota, or acreage base assigned
to the property to lapse, terminate, be reduced, or otherwise
be adversely affected.
``(8) No preemption of state law.--If a conflict exists
between any provision of this subsection and any provision of
the law of any State providing a right of first refusal to
the owner of farmland or the operator of a farm before the
sale or lease of land to any other person, the provision of
State law shall prevail.
``(d) Release of Normal Income Security.--
``(1) Definition of normal income security.--In this
subsection:
``(A) In general.--Except as provided in subparagraph (B),
the term `normal income security' means all security not
considered basic security, including crops, livestock,
poultry products, Farm Service Agency payments and Commodity
Credit Corporation payments, and other property covered by
Farm Service Agency liens that is sold in conjunction with
the operation of a farm or other business.
``(B) Exceptions.--The term `normal income security' does
not include any equipment (including fixtures in States that
have adopted the Uniform Commercial Code), or foundation herd
or flock, that is--
``(i) the basis of the farming or other operation; and
``(ii) the basic security for a farmer program loan.
``(2) General release.--The Secretary shall release from
the normal income security provided for a loan an amount
sufficient to pay for the essential household and farm
operating expenses of the borrower, until such time as the
Secretary accelerates the loan.
``(3) Notice of reporting requirements and rights.--If a
borrower is required to plan for or to report as to how
proceeds from the sale of collateral property will be used,
the Secretary shall notify the borrower of--
``(A) the requirement; and
``(B) the right to the release of funds under this
subsection and the means by which a request for the funds may
be made.
``(e) Easements on Inventoried Property.--
``(1) In general.--Subject to paragraph (2), in the
disposal of real property under this section, the Secretary
shall establish perpetual wetland conservation easements to
protect and restore wetland or converted wetland that exists
on inventoried property.
``(2) Limitation.--The Secretary shall not establish a
wetland conservation easement on an inventoried property
that--
``(A) was cropland on the date the property entered the
inventory of the Secretary; or
``(B) was used for farming at any time during the period--
``(i) beginning on the date that is 5 years before the
property entered the inventory of the Secretary; and
``(ii) ending on the date on which the property entered the
inventory of the Secretary.
[[Page S4045]]
``(3) Notification.--The Secretary shall provide prior
written notification to a borrower considering homestead
retention that a wetland conservation easement may be placed
on land for which the borrower is negotiating a lease option.
``(4) Appraised value.--The appraised value of the farm
shall reflect the value of the land due to the placement of
wetland conservation easements.
``SEC. 3410. CONTRACTS ON LOAN SECURITY PROPERTIES.
``(a) Contracts on Loan Security Properties.--Subject to
subsection (b), the Secretary may enter into a contract
related to real property for conservation, recreation, or
wildlife purposes.
``(b) Limitations.--The Secretary may enter into a contract
under subsection (a) if--
``(1) the property is wetland, upland, or highly erodible
land;
``(2) the property is determined by the Secretary to be
suitable for the purpose involved; and
``(3)(A) the property secures a loan made under a law
administered and held by the Secretary; and
``(B) the contract would better enable a qualified borrower
to repay the loan in a timely manner, as determined by the
Secretary.
``(c) Terms and Conditions.--The terms and conditions
specified in a contract under subsection (a) shall--
``(1) specify the purposes for which the real property may
be used;
``(2) identify any conservation measure to be taken, and
any recreational and wildlife use to be allowed, with respect
to the real property; and
``(3) require the owner to permit the Secretary, and any
person or governmental entity designated by the Secretary, to
have access to the real property for the purpose of
monitoring compliance with the contract.
``(d) Reduction or Forgiveness of Debt.--
``(1) In general.--Subject to this section, the Secretary
may reduce or forgive the outstanding debt of a borrower--
``(A) in the case of a borrower to whom the Secretary has
made an outstanding loan under a law administered by the
Secretary, by canceling that part of the aggregate amount of
the outstanding loan that bears the same ratio to the
aggregate amount as--
``(i) the number of acres of the real property of the
borrower that are subject to the contract; bears to
``(ii) the aggregate number of acres securing the loan; or
``(B) in any other case, by treating as prepaid that part
of the principal amount of a new loan to the borrower issued
and held by the Secretary under a law administered by the
Secretary that bears the same ratio to the principal amount
as--
``(i) the number of acres of the real property of the
borrower that are subject to the contract; bears to
``(ii) the aggregate number of acres securing the new loan.
``(2) Maximum canceled amount.--The amount canceled or
treated as prepaid under paragraph (1) shall not exceed--
``(A) in the case of a delinquent loan, the greater of--
``(i) the value of the land on which the contract is
entered into; or
``(ii) the difference between--
``(I) the amount of the outstanding loan secured by the
land; and
``(II) the value of the land; or
``(B) in the case of a nondelinquent loan, 33 percent of
the amount of the loan secured by the land.
``(e) Consultation With Fish and Wildlife Service.--If the
Secretary uses the authority provided by this section, the
Secretary shall consult with the Director of the Fish and
Wildlife Service for the purposes of--
``(1) selecting real property in which the Secretary may
enter into a contract under this section;
``(2) formulating the terms and conditions of the contract;
and
``(3) enforcing the contract.
``(f) Enforcement.--The Secretary, and any person or
governmental entity designated by the Secretary, may enforce
a contract entered into by the Secretary under this section.
``SEC. 3411. DEBT RESTRUCTURING AND LOAN SERVICING.
``(a) In General.--The Secretary shall modify a delinquent
farmer program loan made under this subtitle, or purchased
from the lender or the Federal Deposit Insurance Corporation
under section 3902, to the maximum extent practicable--
``(1) to avoid a loss to the Secretary on the loan, with
priority consideration being placed on writing-down the loan
principal and interest (subject to subsections (d) and (e)),
and debt set-aside (subject to subsection (e)), to facilitate
keeping the borrower on the farm, or otherwise through the
use of primary loan service programs under this section; and
``(2) to ensure that a borrower is able to continue farming
operations.
``(b) Eligibility.--To be eligible to obtain assistance
under subsection (a)--
``(1) the delinquency shall be due to a circumstance beyond
the control of the borrower, as defined in regulations issued
by the Secretary, except that the regulations shall require
that, if the value of the assets calculated under subsection
(c)(2)(A)(ii) that may be realized through liquidation or
other methods would produce enough income to make the
delinquent loan current, the borrower shall not be eligible
for assistance under subsection (a);
``(2) the borrower shall have acted in good faith with the
Secretary in connection with the loan as defined in
regulations issued by the Secretary;
``(3) the borrower shall present a preliminary plan to the
Secretary that contains reasonable assumptions that
demonstrate that the borrower will be able--
``(A) to meet the necessary family living and farm
operating expenses of the borrower; and
``(B) to service all debts of the borrower, including
restructured loans; and
``(4) the loan, if restructured, shall result in a net
recovery to the Federal Government, during the term of the
loan as restructured, that would be more than or equal to the
net recovery to the Federal Government from an involuntary
liquidation or foreclosure on the property securing the loan.
``(c) Restructuring Determinations.--
``(1) Determination of net recovery.--In determining the
net recovery from the involuntary liquidation of a loan under
this section, the Secretary shall calculate--
``(A) the recovery value of the collateral securing the
loan, in accordance with paragraph (2); and
``(B) the value of the restructured loan, in accordance
with paragraph (3).
``(2) Recovery value.--For the purpose of paragraph (1),
the recovery value of the collateral securing the loan shall
be based on the difference between--
``(A)(i) the amount of the current appraised value of the
interests of the borrower in the property securing the loan;
and
``(ii) the value of the interests of the borrower in all
other assets that are--
``(I) not essential for necessary family living expenses;
``(II) not essential to the operation of the farm; and
``(III) not exempt from judgment creditors or in a
bankruptcy action under Federal or State law;
``(B) the estimated administrative, attorney, and other
expenses associated with the liquidation and disposition of
the loan and collateral, including--
``(i) the payment of prior liens;
``(ii) taxes and assessments, depreciation, management
costs, the yearly percentage decrease or increase in the
value of the property, and lost interest income, each
calculated for the average holding period for the type of
property involved;
``(iii) resale expenses, such as repairs, commissions, and
advertising; and
``(iv) other administrative and attorney costs; and
``(C) the value, as determined by the Secretary, of any
property not included in subparagraph (A)(i) if the property
is specified in any security agreement with respect to the
loan and the Secretary determines that the value of the
property should be included for purposes of this section.
``(3) Value of the restructured loan.--
``(A) In general.--For the purpose of paragraph (1), the
value of the restructured loan shall be based on the present
value of payments that the borrower would make to the Federal
Government if the terms of the loan were modified under any
combination of primary loan service programs to ensure that
the borrower is able to meet the obligations and continue
farming operations.
``(B) Present value.--For the purpose of calculating the
present value referred to in subparagraph (A), the Secretary
shall use a discount rate of not more than the current rate
at the time of the calculation of 90-day Treasury bills.
``(C) Cash flow margin.--For the purpose of assessing under
subparagraph (A) the ability of a borrower to meet debt
obligations and continue farming operations, the Secretary
shall assume that the borrower needs up to 110 percent of the
amount indicated for payment of farm operating expenses, debt
service obligations, and family living expenses.
``(4) Notification.--Not later than 90 days after receipt
of a written request for restructuring from the borrower, the
Secretary shall--
``(A) make the calculations specified in paragraphs (2) and
(3);
``(B) notify the borrower in writing of the results of the
calculations; and
``(C) provide documentation for the calculations.
``(5) Restructuring of loans.--
``(A) In general.--If the value of a restructured loan is
greater than or equal to the recovery value of the collateral
securing the loan, not later than 45 days after notifying the
borrower under paragraph (4), the Secretary shall offer to
restructure the loan obligations of the borrower under this
subtitle through primary loan service programs that would
enable the borrower to meet the obligations (as modified)
under the loan and to continue the farming operations of the
borrower.
``(B) Restructuring.--If the borrower accepts an offer
under subparagraph (A), not later than 45 days after receipt
of notice of acceptance, the Secretary shall restructure the
loan accordingly.
``(6) Termination of loan obligations.--The obligations of
a borrower to the Secretary under a loan shall terminate if--
``(A) the borrower satisfies the requirements of paragraphs
(1) and (2) of subsection (b);
``(B) the value of the restructured loan is less than the
recovery value; and
[[Page S4046]]
``(C) not later than 90 days after receipt of the
notification described in paragraph (4)(B), the borrower pays
(or obtains third-party financing to pay) the Secretary an
amount equal to the current market value.
``(7) Negotiation of appraisal.--
``(A) In general.--In making a determination concerning
restructuring under this subsection, the Secretary, at the
request of the borrower, shall enter into negotiations with
the borrower concerning appraisals required under this
subsection.
``(B) Independent appraisal.--
``(i) In general.--If the borrower, based on a separate
current appraisal, objects to the decision of the Secretary
regarding an appraisal, the borrower and the Secretary shall
mutually agree, to the extent practicable, on an independent
appraiser who shall conduct another appraisal of the property
of the borrower.
``(ii) Value of final appraisal.--The average of the 2
appraisals under clause (i) that are closest in value shall
become the final appraisal under this paragraph.
``(iii) Cost of appraisal.--The borrower and the Secretary
shall each pay \1/2\ of the cost of any independent
appraisal.
``(d) Principal and Interest Write-down.--
``(1) In general.--
``(A) Priority consideration.--In selecting the
restructuring alternatives to be used in the case of a
borrower who has requested restructuring under this section,
the Secretary shall give priority consideration to the use of
a principal and interest write-down if other creditors of the
borrower (other than any creditor who is fully
collateralized) representing a substantial portion of the
total debt of the borrower held by the creditors of the
borrower, agree to participate in the development of the
restructuring plan or agree to participate in a State
mediation program.
``(B) Failure of creditors to agree.--Failure of creditors
to agree to participate in the restructuring plan or
mediation program shall not preclude the use of a principal
and interest write-down by the Secretary if the Secretary
determines that restructuring results in the least cost to
the Secretary.
``(2) Participation of creditors.--Before eliminating the
option to use debt write-down in the case of a borrower, the
Secretary shall make a reasonable effort to contact the
creditors of the borrower, either directly or through the
borrower, and encourage the creditors to participate with the
Secretary in the development of a restructuring plan for the
borrower.
``(e) Shared Appreciation Arrangements.--
``(1) In general.--As a condition of restructuring a loan
in accordance with this section, the borrower of the loan may
be required to enter into a shared appreciation arrangement
that requires the repayment of amounts written off or set
aside.
``(2) Terms.--A shared appreciation agreement shall--
``(A) have a term not to exceed 10 years; and
``(B) provide for recapture based on the difference between
the appraised values of the real security property at the
time of restructuring and at the time of recapture.
``(3) Percentage of recapture.--The amount of the
appreciation to be recaptured by the Secretary shall be--
``(A) 75 percent of the appreciation in the value of the
real security property if the recapture occurs not later than
4 years after the date of restructuring; and
``(B) 50 percent if the recapture occurs during the
remainder of the term of the agreement.
``(4) Time of recapture.--Recapture shall take place on the
date that is the earliest of--
``(A) the end of the term of the agreement;
``(B) the conveyance of the real security property;
``(C) the repayment of the loans; or
``(D) the cessation of farming operations by the borrower.
``(5) Transfer of title.--Transfer of title to the spouse
of a borrower on the death of the borrower shall not be
treated as a conveyance for the purpose of paragraph (4).
``(6) Notice of recapture.--Not later than 12 months before
the end of the term of a shared appreciation arrangement, the
Secretary shall notify the borrower involved of the
provisions of the arrangement.
``(7) Financing of recapture payment.--
``(A) In general.--The Secretary may amortize a recapture
payment owed to the Secretary under this subsection.
``(B) Term.--The term of an amortization under this
paragraph may not exceed 25 years.
``(C) Interest rate.--The interest rate applicable to an
amortization under this paragraph may not exceed the rate
applicable to a loan to reacquire homestead property less 100
basis points.
``(D) Reamortization.--
``(i) In general.--The Secretary may modify the
amortization of a recapture payment referred to in
subparagraph (A) of this paragraph on which a payment has
become delinquent if--
``(I) the default is due to circumstances beyond the
control of the borrower; and
``(II) the borrower acted in good faith (as determined by
the Secretary) in attempting to repay the recapture amount.
``(ii) Limitations.--
``(I) Term of reamortization.--The term of a reamortization
under this subparagraph may not exceed 25 years from the date
of the original amortization agreement.
``(II) No reduction or principal or unpaid interest due.--A
reamortization of a recapture payment under this subparagraph
may not provide for reducing the outstanding principal or
unpaid interest due on the recapture payment.
``(f) Interest Rates.--Any loan for farm ownership
purposes, farm operating purposes, or disaster emergency
purposes, other than a guaranteed loan, that is deferred,
consolidated, rescheduled, or reamortized shall,
notwithstanding any other provision of this subtitle, bear
interest on the balance of the original loan and for the term
of the original loan at a rate that is the lowest of--
``(1) the rate of interest on the original loan;
``(2) the rate being charged by the Secretary for loans,
other than guaranteed loans, of the same type at the time at
which the borrower applies for a deferral, consolidation,
rescheduling, or reamortization; or
``(3) the rate being charged by the Secretary for loans,
other than guaranteed loans, of the same type at the time of
the deferral, consolidation, rescheduling, or reamortization.
``(g) Period and Effect.--
``(1) Period.--The Secretary may consolidate or reschedule
outstanding loans for payment over a period not to exceed 7
years (or, in the case of loans for farm operating purposes,
15 years) from the date of the consolidation or rescheduling.
``(2) Effect.--The amount of unpaid principal and interest
of the prior loans so consolidated or rescheduled shall not
create a new charge against any loan levels authorized by
law.
``(h) Prerequisites to Foreclosure or Liquidation.--No
foreclosure or other similar action shall be taken to
liquidate any loan determined to be ineligible for
restructuring by the Secretary under this section--
``(1) until the borrower has been given the opportunity to
appeal the decision; and
``(2) if the borrower appeals, the appeals process has been
completed, and a determination has been made that the loan is
ineligible for restructuring.
``(i) Notice of Ineligibility for Restructuring.--
``(1) In general.--A notice of ineligibility for
restructuring shall be sent to the borrower by registered or
certified mail not later than 15 days after a determination
of ineligibility.
``(2) Contents.--The notice required under paragraph (1)
shall contain--
``(A) the determination and the reasons for the
determination;
``(B) the computations used to make the determination,
including the calculation of the recovery value of the
collateral securing the loan; and
``(C) a statement of the right of the borrower to appeal
the decision to the appeals division, and to appear before a
hearing officer.
``(j) Independent Appraisals.--
``(1) In general.--An appeal may include a request by the
borrower for an independent appraisal of any property
securing the loan.
``(2) Process for appraisal.--On a request under paragraph
(1), the Secretary shall present the borrower with a list of
3 appraisers approved by the county supervisor, from which
the borrower shall select an appraiser to conduct the
appraisal.
``(3) Cost.--The cost of an appraisal under this subsection
shall be paid by the borrower.
``(4) Result.--The result of an appraisal under this
subsection shall be considered in any final determination
concerning the loan.
``(5) Copy.--A copy of any appraisal under this subsection
shall be provided to the borrower.
``(k) Partial Liquidations.--If a partial liquidation of a
delinquent loan is performed (with the prior consent of the
Secretary) as part of loan servicing by a guaranteed lender
under this title, the Secretary shall not require full
liquidation of the loan for the lender to be eligible to
receive payment on losses.
``(l) Only 1 Write-down or Net Recovery Buy-out Per
Borrower for a Loan Made After January 6, 1988.--
``(1) In general.--The Secretary may provide for each
borrower not more than 1 write-down or net recovery buy-out
under this section with respect to all loans made to the
borrower after January 6, 1988.
``(2) Special rule.--For purposes of paragraph (1), the
Secretary shall treat any loan made on or before January 6,
1988, with respect to which a restructuring, write-down, or
net recovery buy-out is provided under this section after
January 6, 1988, as a loan made after January 6, 1988.
``(m) Liquidation of Assets.--The Secretary may not use the
authority provided by this section to reduce or terminate any
portion of the debt of the borrower that the borrower could
pay through the liquidation of assets (or through the payment
of the loan value of the assets, if the loan value is greater
than the liquidation value) described in subsection
(c)(2)(A)(ii).
``(n) Lifetime Limitation on Debt Forgiveness Per
Borrower.--The Secretary may provide each borrower not more
than $300,000 in debt forgiveness under this section.
[[Page S4047]]
``SEC. 3412. RELIEF FOR MOBILIZED MILITARY RESERVISTS FROM
CERTAIN AGRICULTURAL LOAN OBLIGATIONS.
``(a) Definition of Mobilized Military Reservist.--In this
section, the term `mobilized military reservist' means an
individual who--
``(1) is on active duty under section 688, 12301(a),
12301(g), 12302, 12304, 12306, or 12406, or chapter 15 of
title 10, United States Code, or any other provision of law
during a war or during a national emergency declared by the
President or Congress, regardless of the location at which
the active duty service is performed; or
``(2) in the case of a member of the National Guard, is on
full-time National Guard duty (as defined in section
101(d)(5) of title 10, United States Code) under a call to
active service authorized by the President or the Secretary
of Defense for a period of more than 30 consecutive days
under section 502(f) of title 32, United States Code, for
purposes of responding to a national emergency declared by
the President and supported by Federal funds.
``(b) Forgiveness of Interest Payments Due While Borrower
Is a Mobilized Military Reservist.--Any requirement that a
borrower of a direct loan made under this subtitle make any
interest payment on the loan that would otherwise be required
to be made while the borrower is a mobilized military
reservist is rescinded.
``(c) Deferral of Principal Payments Due While or After
Borrower Is a Mobilized Military Reservist.--The due date of
any payment of principal on a direct loan made to a borrower
under this subtitle that would otherwise be required to be
made while or after the borrower is a mobilized military
reservist is deferred for a period equal in length to the
period for which the borrower is a mobilized military
reservist.
``(d) Nonaccrual of Interest.--Interest on a direct loan
made to a borrower described in this section shall not accrue
during the period the borrower is a mobilized military
reservist.
``(e) Borrower Not Considered to Be Delinquent or Receiving
Debt Forgiveness.--Notwithstanding section 3425 or any other
provision of this title, a borrower who receives assistance
under this section shall not, as a result of the assistance,
be considered to be delinquent or receiving debt forgiveness
for purposes of receiving a direct or guaranteed loan under
this subtitle.
``SEC. 3413. INTEREST RATE REDUCTION PROGRAM.
``(a) Establishment of Program.--The Secretary shall
establish and carry out in accordance with this section an
interest rate reduction program for any loan guaranteed under
this subtitle.
``(b) Entering Into Contracts.--The Secretary shall enter
into a contract with, and make payments to, an institution to
reduce, during the term of the contract, the interest rate
paid by the borrower on the guaranteed loan if--
``(1) the borrower--
``(A) is unable to obtain credit elsewhere;
``(B) is unable to make payments on the loan in a timely
manner; and
``(C) during the 24-month period beginning on the date on
which the contract is entered into, has a total estimated
cash income, including all farm and nonfarm income, that will
equal or exceed the total estimated cash expenses, including
all farm and nonfarm expenses, to be incurred by the borrower
during the period; and
``(2) during the term of the contract, the lender reduces
the annual rate of interest payable on the loan by a minimum
percentage specified in the contract.
``(c) Payments.--
``(1) In general.--Subject to paragraph (2), in return for
a contract entered into by a lender under subsection (b) for
the reduction of the interest rate paid on a loan, the
Secretary shall make payments to the lender in an amount
equal to not more than 100 percent of the cost of reducing
the annual rate of interest payable on the loan.
``(2) Limitation.--Payments under paragraph (1) may not
exceed the cost of reducing the rate by more than 400 basis
points.
``(d) Term.--The term of a contract entered into under this
section to reduce the interest rate on a guaranteed loan may
not exceed the outstanding term of the loan.
``(e) Condition on Foreclosure.--Notwithstanding any other
law, any contract of guarantee on a farm loan entered into
under this subtitle shall contain a condition that the lender
of the loan may not initiate a foreclosure action on the loan
until 60 days after a determination is made with respect to
the eligibility of the borrower to participate in the program
established under this section.
``SEC. 3414. HOMESTEAD PROPERTY.
``(a) Definitions.--In this section:
``(1) Administrator.--The term `Administrator' means the
Administrator of the Small Business Administration.
``(2) Borrower-owner.--The term `borrower-owner' means--
``(A) a borrower-owner of a loan made or guaranteed by the
Secretary or the Administrator who meets the eligibility
requirements of subsection (c)(1); or
``(B) in a case in which an owner of homestead property
pledged the property to secure the loan and the owner is
different than the borrower, the owner.
``(3) Farm program loan.--The term `farm program loan'
means a loan made by the Administrator under the Small
Business Act (15 U.S.C. 631 et seq.) for any of the purposes
authorized for loans under chapter 1 or 2.
``(4) Homestead property.--The term `homestead property'
means--
``(A) the principal residence and adjoining property
possessed and occupied by a borrower-owner, including a
reasonable number of farm outbuildings located on the
adjoining land that are useful to any occupant of the
homestead; and
``(B) not more than 10 acres of adjoining land that is used
to maintain the family of the borrower-owner.
``(b) Retention of Homestead Property.--
``(1) In general.--The Secretary or the Administrator
shall, on application by a borrower-owner who meets the
eligibility requirements of subsection (c)(1), permit the
borrower-owner to retain possession and occupancy of
homestead property under the terms set forth, and until the
action described in this section has been completed, if--
``(A) the Secretary forecloses or takes into inventory
property securing a loan made under this subtitle;
``(B) the Administrator forecloses or takes into inventory
property securing a farm program loan made under the Small
Business Act (15 U.S.C. 631 et seq.); or
``(C) the borrower-owner of a loan made by the Secretary or
the Administrator files a petition in bankruptcy that results
in the conveyance of the homestead property to the Secretary
or the Administrator, or agrees to voluntarily liquidate or
convey the property in whole or in part.
``(2) Period of occupancy.--Subject to subsection (c), the
Secretary or the Administrator shall not grant a period of
occupancy of less than 3 nor more than 5 years.
``(c) Eligibility.--
``(1) In general.--To be eligible to occupy homestead
property, a borrower-owner of a loan made by the Secretary or
the Administrator shall--
``(A) apply for the occupancy not later than 30 days after
the property is acquired by the Secretary or Administrator;
``(B) have received from farming operations gross farm
income that is reasonably commensurate with--
``(i) the size and location of the farming unit of the
borrower-owner; and
``(ii) local agricultural conditions (including natural and
economic conditions), during at least 2 calendar years of the
6-year period preceding the calendar year in which the
application is made;
``(C) have received from farming operations at least 60
percent of the gross annual income of the borrower-owner and
any spouse of the borrower-owner during at least 2 calendar
years of the 6-year period described in subparagraph (B);
``(D) have continuously occupied the homestead property
during the 6-year period described in subparagraph (B),
except that the requirement of this subparagraph may be
waived if a borrower-owner, due to circumstances beyond the
control of the borrower-owner, had to leave the homestead
property for a period of time not to exceed 12 months during
the 6-year period;
``(E) during the period of occupancy of the homestead
property, pay a reasonable sum as rent for the property to
the Secretary or the Administrator in an amount substantially
equivalent to rents charged for similar residential
properties in the area in which the homestead property is
located;
``(F) during the period of the occupancy of the homestead
property, maintain the property in good condition; and
``(G) meet such other reasonable and necessary terms and
conditions as the Secretary may require.
``(2) Definition of farming operations.--In subparagraphs
(B) and (C) of paragraph (1), the term `farming operations'
includes rent paid by a lessee of agricultural land during a
period in which the borrower-owner, due to circumstances
beyond the control of the borrower-owner, is unable to
actively farm the land.
``(3) Termination of rights.--
``(A) In general.--For purposes of paragraph (1)(E), the
failure of the borrower-owner to make a timely rental payment
shall constitute cause for the termination of all rights of
the borrower-owner to possession and occupancy of the
homestead property under this section.
``(B) Procedure for termination.--In effecting a
termination under subparagraph (A), the Secretary shall--
``(i) afford the borrower-owner or lessee the notice and
hearing procedural rights described in subtitle H of the
Department of Agriculture Reorganization Act of 1994 (7
U.S.C. 6991 et seq.); and
``(ii) comply with any applicable State and local law
governing eviction of a person from residential property.
``(4) Rights of borrower-owner.--
``(A) Period of occupancy.--Subject to subsection (b)(2),
the period of occupancy allowed the borrower-owner of
homestead property under this section shall be the period
requested in writing by the borrower-owner.
``(B) Right to reacquire.--
``(i) In general.--During the period the borrower-owner
occupies the homestead property, the borrower-owner shall
have a right to reacquire the homestead property on such
terms and conditions as the Secretary shall determine.
``(ii) Socially disadvantaged borrower-owner.--During the
period of occupancy of a
[[Page S4048]]
borrower-owner who is a socially disadvantaged farmer, the
borrower-owner or a member of the immediate family of the
borrower-owner shall have a right of first refusal to
reacquire the homestead property on such terms and conditions
as the Secretary shall determine.
``(iii) Independent appraisal.--The Secretary may not
demand a payment for the homestead property that is in excess
of the current market value of the homestead property as
established by an independent appraisal.
``(iv) Conduct of appraisal.--An independent appraisal
under clause (iii) shall be conducted by an appraiser
selected by the borrower-owner, or, in the case of a
borrower-owner who is a socially disadvantaged farmer, the
immediate family member of the borrower-owner, from a list of
3 appraisers approved by the county supervisor.
``(5) Transfer of rights.--
``(A) In general.--Except as provided in subparagraph (B),
no right of a borrower-owner under this section, and no
agreement entered into between the borrower-owner and the
Secretary for occupancy of the homestead property, shall be
transferable or assignable by the borrower-owner or by
operation of law.
``(B) Death or incompetency.--In the case of death or
incompetency of the borrower-owner, the right and agreement
shall be transferable to a spouse of the borrower-owner if
the spouse agrees to comply with any terms and conditions of
the right or agreement.
``(6) Notification.--Not later than the date of acquisition
of the property securing a loan made under this title, the
Secretary shall notify the borrower-owner of the property of
the availability of homestead protection rights under this
section.
``(d) End of Period of Occupancy.--
``(1) In general.--At the end of the period of occupancy
allowed a borrower-owner under subsection (c), the Secretary
or the Administrator shall grant to the borrower-owner a
right of first refusal to reacquire the homestead property on
such terms and conditions (which may include payment of
principal in installments) as the Secretary or the
Administrator shall determine.
``(2) Terms and conditions.--The terms and conditions
granted under paragraph (1) may not be less favorable than
those offered by the Secretary or Administrator or intended
by the Secretary or Administrator to be offered to any other
buyer.
``(e) Maximum Payment of Principal.--
``(1) In general.--At the time a reacquisition agreement is
entered into, the Secretary or the Administrator may not
demand a total payment of principal that is in excess of the
value of the homestead property.
``(2) Determination of value.--To the maximum extent
practicable, the value of the homestead property shall be
determined by an independent appraisal made during the 180
day period beginning on the date of receipt of the
application of the borrower-owner to retain possession and
occupancy of the homestead property.
``(f) Title Not Needed to Enter Into Contracts.--The
Secretary may enter into a contract authorized by this
section before the Secretary acquires title to the homestead
property that is the subject of the contract.
``(g) State Law Prevails.--In the event of a conflict
between this section and a provision of State law relating to
the right of a borrower-owner to designate for separate sale
or redeem part or all of the real property securing a loan
foreclosed on by a lender to the borrower-owner, the
provision of State law shall prevail.
``SEC. 3415. TRANSFER OF INVENTORY LAND.
``(a) In General.--Subject to subsection (b), the Secretary
may transfer to a Federal or State agency, for conservation
purposes, any real property, or interest in real property,
administered by the Secretary under this subtitle--
``(1) with respect to which the rights of all prior owners
and operators have expired;
``(2) that is eligible to be disposed of in accordance with
section 3409; and
``(3) that--
``(A) has marginal value for agricultural production;
``(B) is environmentally sensitive; or
``(C) has special management importance.
``(b) Conditions.--The Secretary may not transfer any
property or interest in property under subsection (a)
unless--
``(1) at least 2 public notices are given of the transfer;
``(2) if requested, at least 1 public meeting is held prior
to the transfer; and
``(3) the Governor and at least 1 elected county official
of the State and county in which the property is located are
consulted prior to the transfer.
``SEC. 3416. TARGET PARTICIPATION RATES.
``(a) Establishment.--
``(1) In general.--The Secretary shall establish annual
target participation rates, on a county-wide basis, that
shall ensure that members of socially disadvantaged groups
shall--
``(A) receive loans made or guaranteed under chapter 1; and
``(B) have the opportunity to purchase or lease farmland
acquired by the Secretary under this subtitle.
``(2) Group population.--Except as provided in paragraph
(3), in establishing the target rates, the Secretary shall
take into consideration--
``(A) the portion of the population of the county made up
of the socially disadvantaged groups; and
``(B) the availability of inventory farmland in the county.
``(3) Gender.--In the case of gender, target participation
rates shall take into consideration the number of current and
potential socially disadvantaged farmers in a State in
proportion to the total number of farmers in the State.
``(b) Reservation and Allocation.--
``(1) Reservation.--To the maximum extent practicable, the
Secretary shall reserve sufficient loan funds made available
under chapter 1 for use by members of socially disadvantaged
groups identified under target participation rates
established under subsection (a).
``(2) Allocation.--The Secretary shall allocate the loans
on the basis of the proportion of members of socially
disadvantaged groups in a county and the availability of
inventory farmland, with the greatest amount of loan funds
being distributed in the county with the greatest proportion
of socially disadvantaged group members and the greatest
quantity of available inventory farmland.
``(3) Indian reservations.--In distributing loan funds in
counties within the boundaries of an Indian reservation, the
Secretary shall allocate the funds on a reservation-wide
basis.
``(c) Operating Loans.--
``(1) Establishment.--
``(A) In general.--The Secretary shall establish annual
target participation rates that shall ensure that socially
disadvantaged farmers receive loans made or guaranteed under
chapter 2.
``(B) Considerations.--In establishing the target rates,
the Secretary shall consider the number of socially
disadvantaged farmers in a State in proportion to the total
number of farmers in the State.
``(2) Reservation and allocation.--
``(A) In general.--To the maximum extent practicable, the
Secretary shall reserve and allocate the proportion of the
loan funds of each State made available under chapter 2 that
is equal to the target participation rate of the State for
use by the socially disadvantaged farmers in the State.
``(B) Distribution.--To the maximum extent practicable, the
Secretary shall distribute the total loan funds reserved
under subparagraph (A) on a county-by-county basis according
to the number of socially disadvantaged farmers in the
county.
``(C) Reallocation of unused funds.--Any funds reserved and
allocated under this paragraph but not used within a State
shall, to the extent necessary to satisfy pending
applications under this title, be available for use by
socially disadvantaged farmers in other States, as determined
by the Secretary, and any remaining funds shall be
reallocated within the State.
``(d) Report.--The Secretary shall prepare and submit to
the Committee on Agriculture of the House of Representatives
and the Committee on Agriculture, Nutrition, and Forestry of
the Senate a report that describes the annual target
participation rates and the success in meeting the rates.
``(e) Implementation Consistent With Supreme Court
Holding.--Not later than 180 days after April 4, 1996, the
Secretary shall ensure that the implementation of this
section is consistent with the holding of the Supreme Court
in Adarand Constructors, Inc. v. Federico Pena, Secretary of
Transportation, 115 S. Ct. 2097 (1995).
``SEC. 3417. COMPROMISE OR ADJUSTMENT OF DEBTS OR CLAIMS BY
GUARANTEED LENDER.
``(a) Loss by Lender.--If the lender of a guaranteed farmer
program loan takes any action described in section 3903(a)(4)
with respect to the loan and the Secretary approves the
action, for purposes of the guarantee, the lender shall be
treated as having sustained a loss equal to the amount by
which--
``(1) the outstanding balance of the loan immediately
before the action; exceeds
``(2) the outstanding balance of the loan immediately after
the action.
``(b) Net Present Value of Loan.--The Secretary shall
approve the taking of an action described in section
3903(a)(4) by the lender of a guaranteed farmer program loan
with respect to the loan if the action reduces the net
present value of the loan to an amount equal to not less than
the greater of--
``(1) the greatest net present value of a loan the borrower
could reasonably be expected to repay; and
``(2) the difference between--
``(A) the greatest amount that the lender of the loan could
reasonably expect to recover from the borrower through
bankruptcy, or liquidation of the property securing the loan;
and
``(B) all reasonable and necessary costs and expenses that
the lender of the loan could reasonably expect to incur to
preserve or dispose of the property (including all associated
legal and property management costs) in the course of such a
bankruptcy or liquidation.
``(c) No Limitation on Authority.--This section shall not
limit the authority of the Secretary to enter into a shared
appreciation arrangement with a borrower under section
3411(e).
``SEC. 3418. WAIVER OF MEDIATION RIGHTS BY BORROWERS.
``The Secretary may not make or guarantee any farmer
program loan to a farm borrower on the condition that the
borrower waive any right under the mediation program of any
State.
[[Page S4049]]
``SEC. 3419. BORROWER TRAINING.
``(a) In General.--The Secretary shall contract to provide
educational training to all borrowers of direct loans made
under this subtitle in financial and farm management concepts
associated with commercial farming.
``(b) Contract.--
``(1) In general.--The Secretary may contract with a State
or private provider of farm management and credit counseling
services (including a community college, the extension
service of a State, a State department of agriculture, or a
nonprofit organization) to carry out this section.
``(2) Consultation.--The Secretary may consult with the
chief executive officer of a State concerning the identity of
the contracting organization and the process for contracting.
``(c) Eligibility for Loans.--
``(1) In general.--Subject to paragraph (2), to be eligible
to obtain a direct or guaranteed loan under this subtitle, a
borrower shall be required to obtain management assistance
under this section, appropriate to the management ability of
the borrower during the determination of eligibility for the
loan.
``(2) Loan conditions.--The need of a borrower who
satisfies the criteria set out in section 3101(b)(1)(B) or
3201(b)(1)(B) for management assistance under this section
shall not be cause for denial of eligibility of the borrower
for a direct or guaranteed loan under this subtitle.
``(d) Guidelines and Curriculum.--The Secretary shall issue
regulations establishing guidelines and curriculum for the
borrower training program established under this section.
``(e) Payment.--A borrower--
``(1) shall pay for training received under this section;
and
``(2) may use funds from operating loans made under chapter
2 to pay for the training.
``(f) Waivers.--
``(1) In general.--The Secretary may waive the requirements
of this section for an individual borrower on a determination
that the borrower demonstrates adequate knowledge in areas
described in this section.
``(2) Criteria.--The Secretary shall establish criteria
providing for the application of paragraph (1) consistently
in all counties nationwide.
``SEC. 3420. LOAN ASSESSMENTS.
``(a) In General.--After an applicant is determined to be
eligible for assistance under this subtitle, the Secretary
shall evaluate, in accordance with regulations issued by the
Secretary, the farming plan and financial situation of each
qualified farmer applicant.
``(b) Determinations.--In evaluating the farming plan and
financial situation of an applicant under this section, the
Secretary shall determine--
``(1) the amount that the applicant needs to borrow to
carry out the proposed farming plan;
``(2) the rate of interest that the applicant would need to
be able to cover expenses and build an adequate equity base;
``(3) the goals of the proposed farming plan of the
applicant;
``(4) the financial viability of the plan and any changes
that are necessary to make the plan viable; and
``(5) whether assistance is necessary under this title and,
if so, the amount of the assistance.
``(c) Contract.--The Secretary may contract with a third
party (including an entity that is eligible to provide
borrower training under section 3419(b)) to conduct a loan
assessment under this section.
``(d) Review of Loans.--
``(1) In general.--Loan assessments conducted under this
section shall include biannual review of direct loans, and
periodic review (as determined necessary by the Secretary) of
guaranteed loans, made under this title to assess the
progress of a borrower in meeting the goals for the farm
operation.
``(2) Contracts.--The Secretary may contract with an entity
that is eligible to provide borrower training under section
3419(b) to conduct a loan review under paragraph (1).
``(3) Problem assessments.--If a borrower is delinquent in
payments on a direct or guaranteed loan made under this
title, the Secretary or the contracting entity shall
determine the cause of, and action necessary to correct, the
delinquency.
``(e) Guidelines.--The Secretary shall issue regulations
providing guidelines for loan assessments conducted under
this section.
``SEC. 3421. SUPERVISED CREDIT.
``The Secretary shall provide adequate training to
employees of the Farm Service Agency on credit analysis and
financial and farm management--
``(1) to better acquaint the employees with what
constitutes adequate financial data on which to base a direct
or guaranteed loan approval decision; and
``(2) to ensure proper supervision of farmer program loans.
``SEC. 3422. MARKET PLACEMENT.
``The Secretary shall establish a market placement program
for a qualified beginning farmer and any other borrower of
farmer program loans that the Secretary believes has a
reasonable chance of qualifying for commercial credit with a
guarantee provided under this subtitle.
``SEC. 3423. RECORDKEEPING OF LOANS BY GENDER OF BORROWER.
``The Secretary shall classify, by gender, records of
applicants for loans and loan guarantees under this subtitle.
``SEC. 3424. CROP INSURANCE REQUIREMENT.
``(a) In General.--As a condition of obtaining any benefit
(including a direct loan, loan guarantee, or payment)
described in subsection (b), a borrower shall be required to
obtain at least catastrophic risk protection insurance
coverage under section 508 of the Federal Crop Insurance Act
(7 U.S.C. 1508) for the crop and crop year for which the
benefit is sought, if the coverage is offered by the Federal
Crop Insurance Corporation.
``(b) Applicable Benefits.--Subsection (a) shall apply to--
``(1) a farm ownership loan under section 3102;
``(2) an operating loan under section 3202; and
``(3) an emergency loan under section 3301.
``SEC. 3425. LOAN AND LOAN SERVICING LIMITATIONS.
``(a) Delinquent Borrowers Prohibited From Obtaining Direct
Operating Loans.--The Secretary may not make a direct
operating loan under chapter 2 to a borrower who is
delinquent on any loan made or guaranteed under this
subtitle.
``(b) Loans Prohibited for Borrowers That Have Received
Debt Forgiveness.--
``(1) Prohibitions.--Except as provided in paragraph (2)--
``(A) the Secretary may not make a loan under this subtitle
to a borrower that has received debt forgiveness on a loan
made or guaranteed under this subtitle; and
``(B) the Secretary may not guarantee a loan under this
subtitle to a borrower that has received--
``(i) debt forgiveness after April 4, 1996, on a loan made
or guaranteed under this subtitle; or
``(ii) received debt forgiveness on more than 3 occasions
on or before April 4, 1996.
``(2) Exceptions.--
``(A) In general.--The Secretary may make a direct or
guaranteed farm operating loan for paying annual farm
operating expenses of a borrower who--
``(i) was restructured with a write-down under section
3411;
``(ii) is current on payments under a confirmed
reorganization plan under chapters 1 11, 12, or 13 of title
11 of the United States Code; or
``(iii) received debt forgiveness on not more than 1
occasion resulting directly and primarily from a major
disaster or emergency designated by the President on or after
April 4, 1996, under the Robert T. Stafford Disaster Relief
and Emergency Assistance Act (42 U.S.C. 5121 et seq.).
``(B) Emergency loans.--The Secretary may make an emergency
loan under section 3301 to a borrower that--
``(i) on or before April 4, 1996, received not more than 1
debt forgiveness on a loan made or guaranteed under this
subtitle; and
``(ii) after April 4, 1996, has not received debt
forgiveness on a loan made or guaranteed under this subtitle.
``(c) No More Than 1 Debt Forgiveness for a Borrower on a
Direct Loan.--The Secretary may not provide to a borrower
debt forgiveness on a direct loan made under this subtitle if
the borrower has received debt forgiveness on another direct
loan made under this subtitle.
``SEC. 3426. SHORT FORM CERTIFICATION OF FARM PROGRAM
BORROWER COMPLIANCE.
``The Secretary shall develop and use a consolidated short
form for farmer program loan borrowers to use in certifying
compliance with any applicable provision of law (including a
regulation) that serves as an eligibility prerequisite for a
loan made under this subtitle.
``SEC. 3427. UNDERWRITING FORMS AND STANDARDS.
``In the administration of this subtitle, the Secretary
shall, to the extent practicable, use underwriting forms,
standards, practices, and terminology similar to the forms,
standards, practices, and terminology used by lenders in the
private sector.
``SEC. 3428. BEGINNING FARMER INDIVIDUAL DEVELOPMENT ACCOUNTS
PILOT PROGRAM.
``(a) Definitions.--In this section:
``(1) Demonstration program.--The term `demonstration
program' means a demonstration program carried out by a
qualified entity under the pilot program established in
subsection (b)(1).
``(2) Eligible participant.--The term `eligible
participant' means a qualified beginning farmer that--
``(A) lacks significant financial resources or assets; and
``(B) has an income that is less than--
``(i) 80 percent of the median income of the State in which
the farmer resides; or
``(ii) 200 percent of the most recent annual Federal
Poverty Income Guidelines published by the Department of
Health and Human Services for the State.
``(3) Individual development account.--The term `individual
development account' means a savings account described in
subsection (b)(4)(A).
``(4) Qualified entity.--
``(A) In general.--The term `qualified entity' means--
``(i) 1 or more organizations--
``(I) described in section 501(c)(3) of the Internal
Revenue Code of 1986; and
``(II) exempt from taxation under section 501(a) of such
Code; or
``(ii) a State, local, or tribal government submitting an
application jointly with an organization described in clause
(i).
[[Page S4050]]
``(B) No prohibition on collaboration.--An organization
described in subparagraph (A)(i) may collaborate with a
financial institution or for-profit community development
corporation to carry out the purposes of this section.
``(b) Pilot Program.--
``(1) In general.--The Secretary shall establish a pilot
program to be known as the `New Farmer Individual Development
Accounts Pilot Program' under which the Secretary shall work
through qualified entities to establish demonstration
programs--
``(A) of at least 5 years in duration; and
``(B) in at least 15 States.
``(2) Coordination.--The Secretary shall operate the pilot
program through and in coordination with the farmer program
loans of the Farm Service Agency.
``(3) Reserve funds.--
``(A) In general.--A qualified entity carrying out a
demonstration program under this section shall establish a
reserve fund consisting of a non-Federal match of 50 percent
of the total amount of the grant awarded to the demonstration
program under this section.
``(B) Federal funds.--After the qualified entity has
deposited the non-Federal matching funds described in
subparagraph (A) in the reserve fund, the Secretary shall
provide the total amount of the grant awarded under this
section to the demonstration program for deposit in the
reserve fund.
``(C) Use of funds.--Of the funds deposited under
subparagraph (B) in the reserve fund established for a
demonstration program, the qualified entity carrying out the
demonstration program--
``(i) may use up to 10 percent for administrative expenses;
and
``(ii) shall use the remainder in making matching awards
described in paragraph (4)(B)(ii)(I).
``(D) Interest.--Any interest earned on amounts in a
reserve fund established under subparagraph (A) may be used
by the qualified entity as additional matching funds for, or
to administer, the demonstration program.
``(E) Guidance.--The Secretary shall issue guidance
regarding the investment requirements of reserve funds
established under this paragraph.
``(F) Reversion.--On the date on which all funds remaining
in any individual development account established by a
qualified entity have reverted under paragraph (5)(B)(ii) to
the reserve fund established by the qualified entity, there
shall revert to the Treasury of the United States a
percentage of the amount (if any) in the reserve fund equal
to--
``(i) the amount of Federal funds deposited in the reserve
fund under subparagraph (B) that were not used for
administrative expenses; divided by
``(ii) the total amount of funds deposited in the reserve
fund.
``(4) Individual development accounts.--
``(A) In general.--A qualified entity receiving a grant
under this section shall establish and administer individual
development accounts for eligible participants.
``(B) Contract requirements.--To be eligible to receive
funds under this section from a qualified entity, an eligible
participant shall enter into a contract with only 1 qualified
entity under which--
``(i) the eligible participant agrees--
``(I) to deposit a certain amount of funds of the eligible
participant in a personal savings account, as prescribed by
the contractual agreement between the eligible participant
and the qualified entity;
``(II) to use the funds described in subclause (I) only for
1 or more eligible expenditures described in paragraph
(5)(A); and
``(III) to complete financial training; and
``(ii) the qualified entity agrees--
``(I) to deposit, not later than 1 month after an amount is
deposited pursuant to clause (i)(I), at least a 100-percent,
and up to a 200-percent, match of that amount into the
individual development account established for the eligible
participant; and
``(II) with uses of funds proposed by the eligible
participant.
``(C) Limitation.--
``(i) In general.--A qualified entity administering a
demonstration program under this section may provide not more
than $6,000 for each fiscal year in matching funds to the
individual development account established by the qualified
entity for an eligible participant.
``(ii) Treatment of amount.--An amount provided under
clause (i) shall not be considered to be a gift or loan for
mortgage purposes.
``(5) Eligible expenditures.--
``(A) In general.--An eligible expenditure described in
this subparagraph is an expenditure--
``(i) to purchase farmland or make a down payment on an
accepted purchase offer for farmland;
``(ii) to make mortgage payments on farmland purchased
pursuant to clause (i), for up to 180 days after the date of
the purchase;
``(iii) to purchase breeding stock, fruit or nut trees, or
trees to harvest for timber; and
``(iv) for other similar expenditures, as determined by the
Secretary.
``(B) Timing.--
``(i) In general.--An eligible participant may make an
eligible expenditure at any time during the 2-year period
beginning on the date on which the last matching funds are
provided under paragraph (4)(B)(ii)(I) to the individual
development account established for the eligible participant.
``(ii) Unexpended funds.--At the end of the period
described in clause (i), any funds remaining in an individual
development account established for an eligible participant
shall revert to the reserve fund of the demonstration program
under which the account was established.
``(c) Applications.--
``(1) In general.--A qualified entity that seeks to carry
out a demonstration program under this section may submit to
the Secretary an application at such time, in such form, and
containing such information as the Secretary may prescribe.
``(2) Criteria.--In considering whether to approve an
application to carry out a demonstration program under this
section, the Secretary shall assess--
``(A) the degree to which the demonstration program
described in the application is likely to aid eligible
participants in successfully pursuing new farming
opportunities;
``(B) the experience and ability of the qualified entity to
responsibly administer the demonstration program;
``(C) the experience and ability of the qualified entity in
recruiting, educating, and assisting eligible participants to
increase economic independence and pursue or advance farming
opportunities;
``(D) the aggregate amount of direct funds from non-Federal
public sector and private sources that are formally committed
to the demonstration program as matching contributions;
``(E) the adequacy of the plan of the qualified entity to
provide information relevant to an evaluation of the
demonstration program; and
``(F) such other factors as the Secretary considers to be
appropriate.
``(3) Preferences.--In considering an application to
conduct a demonstration program under this section, the
Secretary shall give preference to an application from a
qualified entity that demonstrates--
``(A) a track record of serving clients targeted by the
program, including, as appropriate, socially disadvantaged
farmers; and
``(B) expertise in dealing with financial management
aspects of farming.
``(4) Approval.--Not later than 1 year after the date of
enactment of this section, in accordance with this section,
the Secretary shall, on a competitive basis, approve such
applications to conduct demonstration programs as the
Secretary considers appropriate.
``(5) Term of authority.--If the Secretary approves an
application to carry out a demonstration program, the
Secretary shall authorize the applicant to carry out the
project for a period of 5 years, plus an additional 2 years
to make eligible expenditures in accordance with subsection
(b)(5)(B).
``(d) Grant Authority.--
``(1) In general.--The Secretary shall make a grant to a
qualified entity authorized to carry out a demonstration
program under this section.
``(2) Maximum amount of grants.--The aggregate amount of
grant funds provided to a demonstration program carried out
under this section shall not exceed $250,000.
``(3) Timing of grant payments.--The Secretary shall pay
the amounts awarded under a grant made under this section--
``(A) on the awarding of the grant; or
``(B) pursuant to such payment plan as the qualified entity
may specify.
``(e) Reports.--
``(1) Annual progress reports.--
``(A) In general.--Not later than 60 days after the end of
the calendar year in which the Secretary authorizes a
qualified entity to carry out a demonstration program under
this section, and annually thereafter until the conclusion of
the demonstration program, the qualified entity shall prepare
an annual report that includes, for the period covered by the
report--
``(i) an evaluation of the progress of the demonstration
program;
``(ii) information about the demonstration program,
including the eligible participants and the individual
development accounts that have been established; and
``(iii) such other information as the Secretary may
require.
``(B) Submission of reports.--A qualified entity shall
submit each report required under subparagraph (A) to the
Secretary.
``(2) Reports by the secretary.--Not later than 1 year
after the date on which all demonstration programs under this
section are concluded, the Secretary shall submit to Congress
a final report that describes the results and findings of all
reports and evaluations carried out under this section.
``(f) Annual Review.--The Secretary may conduct an annual
review of the financial records of a qualified entity--
``(1) to assess the financial soundness of the qualified
entity; and
``(2) to determine the use of grant funds made available to
the qualified entity under this section.
``(g) Regulations.--In carrying out this section, the
Secretary may promulgate regulations to ensure that the
program includes provisions for--
``(1) the termination of demonstration programs;
``(2) control of the reserve funds in the case of such a
termination;
``(3) transfer of demonstration programs to other qualified
entities; and
``(4) remissions from a reserve fund to the Secretary in a
case in which a demonstration program is terminated without
transfer to a new qualified entity.
[[Page S4051]]
``(h) Authorization of Appropriations.--There is authorized
to be appropriated to carry out this section $5,000,000 for
each of fiscal years 2012 through 2017.
``SEC. 3429. FARMER LOAN PILOT PROJECTS.
``(a) In General.--The Secretary may conduct pilot projects
of limited scope and duration that are consistent with this
subtitle to evaluate processes and techniques that may
improve the efficiency and effectiveness of the programs
carried out under this subtitle
``(b) Notification.--The Secretary shall--
``(1) not less than 60 days before the date on which the
Secretary initiates a pilot project under subsection (a),
submit notice of the proposed pilot project to the Committee
on Agriculture of the House of Representatives and the
Committee on Agriculture, Nutrition, and Forestry of the
Senate; and
``(2) consider any recommendations or feedback provided to
the Secretary in response to the notice provided under
paragraph (1).
``SEC. 3430. AUTHORIZATION OF APPROPRIATIONS AND ALLOCATION
OF FUNDS.
``(a) Authorization for Loans.--
``(1) In general.--The Secretary may make or guarantee
loans under chapters 1 and 2 from the Agricultural Credit
Insurance Fund for not more than $4,226,000,000 for each of
fiscal years 2012 through 2017, of which, for each fiscal
year--
``(A) $1,200,000,000 shall be for direct loans, of which--
``(i) $350,000,000 shall be for farm ownership loans; and
``(ii) $850,000,000 shall be for operating loans; and
``(B) $3,026,000,000 shall be for guaranteed loans, of
which--
``(i) $1,000,000,000 shall be for guarantees of farm
ownership loans; and
``(ii) $2,026,000,000 shall be for guarantees of operating
loans.
``(2) Beginning farmers.--
``(A) Direct loans.--
``(i) Farm ownership loans.--
``(I) In general.--Of the amounts made available under
paragraph (1) for direct farm ownership loans, the Secretary
shall reserve an amount that is not less than 75 percent of
the total amount for qualified beginning farmers.
``(II) Down payment loans; joint financing arrangements.--
Of the amounts reserved for a fiscal year under subclause
(I), the Secretary shall reserve an amount not less than \2/
3\ of the amount for the down payment loan program under
section 3107 and joint financing arrangements under section
3105 until April 1 of the fiscal year.
``(ii) Operating loans.--Of the amounts made available
under paragraph (1) for direct operating loans, the Secretary
shall reserve for qualified beginning farmers for each of
fiscal years 2012 through 2017, an amount that is not less
than 50 percent of the total amount.
``(iii) Funds reserved until september 1.--Except as
provided in clause (i)(II), funds reserved for qualified
beginning farmers under this subparagraph for a fiscal year
shall be reserved only until September 1 of the fiscal year.
``(B) Guaranteed loans.--
``(i) Farm ownership loans.--Of the amounts made available
under paragraph (1) for guarantees of farm ownership loans,
the Secretary shall reserve an amount that is not less than
40 percent of the total amount for qualified beginning
farmers.
``(ii) Operating loans.--Of the amounts made available
under paragraph (1) for guarantees of operating loans, the
Secretary shall reserve 40 percent for qualified beginning
farmers.
``(iii) Funds reserved until april 1.--Funds reserved for
qualified beginning farmers under this subparagraph for a
fiscal year shall be reserved only until April 1 of the
fiscal year.
``(C) Reserved funds for all qualified beginning farmers.--
If a qualified beginning farmer meets the eligibility
criteria for receiving a direct or guaranteed loan under
section 3101, 3107, or 3201, 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.--Subject to subparagraph (B)--
``(i) beginning on August 1 of each fiscal year, the
Secretary shall use available unsubsidized guaranteed farm
operating loan funds to provide direct farm ownership loans
approved by the Secretary to qualified beginning farmers
under the down payment loan program established under section
3107, if sufficient direct farm ownership loan funds are not
otherwise available; and
``(ii) beginning on September 1 of each fiscal year, the
Secretary shall use available unsubsidized guaranteed farm
operating loan funds to provide direct farm ownership loans
approved by the Secretary to qualified beginning farmers, if
sufficient direct farm ownership loan funds are not otherwise
available.
``(B) Limitation.--The Secretary shall limit the transfer
of funds under subparagraph (A) so that all guaranteed farm
operating loans that have been approved, or will be approved,
by the Secretary during the fiscal year will be made to the
extent of available amounts.
``(4) Transfer for credit sales of farm inventory
property.--
``(A) In general.--Subject to subparagraphs (B) and (C),
beginning on September 1 of each fiscal year, the Secretary
may use available funds made available under chapter 3 for
the fiscal year to fund the credit sale of farm real estate
in the inventory of the Secretary.
``(B) Supplemental appropriations.--The transfer authority
provided under subparagraph (A) shall not apply to any funds
made available to the Secretary for any fiscal year under an
Act making supplemental appropriations.
``(C) Limitation.--The Secretary shall limit the transfer
of funds under subparagraph (A) so that all emergency
disaster loans that have been approved, or will be approved,
by the Secretary during the fiscal year will be made to the
extent of available amounts.
``(5) Availability of funds.--Funds made available to carry
out this subtitle shall remain available until expended.
``(b) Cost Projections.--
``(1) In general.--The Secretary shall develop long-term
cost projections for loan program authorizations required
under subsection (a).
``(2) Analysis.--Each projection under paragraph (1) shall
include analyses of--
``(A) the long-term costs of the lending levels that the
Secretary requests to be authorized under subsection (a); and
``(B) the long-term costs for increases in lending levels
beyond those requested to be authorized, based on increments
of $10,000,000 or such other levels as the Secretary
considers appropriate.
``(3) Submission to congress.--The Secretary shall submit
to the Committees on Agriculture and Appropriations of the
House of Representatives and the Committees on Agriculture,
Nutrition, and Forestry and Appropriations of the Senate
reports containing the long-term cost projections for the 3-
year period beginning with fiscal year 1983 and each 3-year
period thereafter at the time the requests for authorizations
for those periods are submitted to Congress.
``(c) Low-income, Limited-resource Borrowers.--
``(1) Reserve.--Notwithstanding any other provision of law,
not less than 25 percent of the loans for farm ownership
purposes for each fiscal year under this subtitle shall be
for low-income, limited-resource borrowers.
``(2) Notification.--The Secretary shall provide
notification to farm borrowers under this subtitle in the
normal course of loan making and loan servicing operations,
of the provisions of this subtitle relating to low-income,
limited-resource borrowers and the procedures by which
persons may apply for loans under the low-income, limited-
resource borrower program.''.
Subtitle B--Miscellaneous
SEC. 5101. STATE AGRICULTURAL MEDIATION PROGRAMS.
Section 506 of the Agricultural Credit Act of 1987 (7
U.S.C. 5106) is amended by striking ``2015'' and inserting
``2017''.
SEC. 5102. LOANS TO PURCHASERS OF HIGHLY FRACTIONATED LAND.
The first section of Public Law 91 229 (25 U.S.C. 488) is
amended in subsection (b)(1) by inserting ``or to
intermediaries in order to establish revolving loan funds for
the purchase of highly fractionated land under that section''
before the period at the end.
SEC. 5103. REMOVAL OF DUPLICATIVE APPRAISALS.
Notwithstanding any other law (including regulations), in
making loans under the first section of Public Law 91 229 (25
U.S.C. 488), borrowers who are Indian tribes, members of
Indian tribes, or tribal corporations shall only be required
to obtain 1 appraisal under an appraisal standard recognized
as of the date of enactment of this Act by the Secretary or
the Secretary of the Interior.
TITLE VI--RURAL DEVELOPMENT
Subtitle A--Reorganization of the Consolidated Farm and Rural
Development Act
SEC. 6001. REORGANIZATION OF THE CONSOLIDATED FARM AND RURAL
DEVELOPMENT ACT.
Title III of the Agricultural Act of 1961 (7 U.S.C. 1921 et
seq.) is amended to read as follows:
``TITLE III--AGRICULTURAL CREDIT
``SEC. 3001. SHORT TITLE; TABLE OF CONTENTS.
``(a) Short Title.--This title may be cited as the
`Consolidated Farm and Rural Development Act'.
``(b) Table of Contents.--The table of contents of this
title is as follows:
``TITLE III--AGRICULTURAL CREDIT
``Sec. 3001. Short title; table of contents.
``Sec. 3002. Definitions.
``Subtitle A--Farmer Loans, Servicing, and Other Assistance
``Chapter 1--Farm Ownership Loans
``Sec. 3101. Farm ownership loans.
``Sec. 3102. Purposes of loans.
``Sec. 3103. Conservation loan and loan guarantee program.
``Sec. 3104. Loan maximums.
``Sec. 3105. Repayment requirements for farm ownership loans.
``Sec. 3106. Limited-resource loans.
``Sec. 3107. Downpayment loan program.
``Sec. 3108. Beginning farmer and socially disadvantaged farmer
contract land sales program.
``Chapter 2--Operating Loans
``Sec. 3201. Operating loans.
``Sec. 3202. Purposes of loans.
``Sec. 3203. Restrictions on loans.
``Sec. 3204. Terms of loans.
``Chapter 3--Emergency Loans
``Sec. 3301. Emergency loans.
[[Page S4052]]
``Sec. 3302. Purposes of loans.
``Sec. 3303. Terms of loans.
``Sec. 3304. Production losses.
``Chapter 4--General Farmer Loan Provisions
``Sec. 3401. Agricultural Credit Insurance Fund.
``Sec. 3402. Guaranteed farmer loans.
``Sec. 3403. Provision of information to borrowers.
``Sec. 3404. Notice of loan service programs.
``Sec. 3405. Planting and production history guidelines.
``Sec. 3406. Special conditions and limitations on loans.
``Sec. 3407. Graduation of borrowers.
``Sec. 3408. Debt adjustment and credit counseling.
``Sec. 3409. Security servicing.
``Sec. 3410. Contracts on loan security properties.
``Sec. 3411. Debt restructuring and loan servicing.
``Sec. 3412. Relief for mobilized military reservists from certain
agricultural loan obligations.
``Sec. 3413. Interest rate reduction program.
``Sec. 3414. Homestead property.
``Sec. 3415. Transfer of inventory land.
``Sec. 3416. Target participation rates.
``Sec. 3417. Compromise or adjustment of debts or claims by guaranteed
lender.
``Sec. 3418. Waiver of mediation rights by borrowers.
``Sec. 3419. Borrower training.
``Sec. 3420. Loan assessments.
``Sec. 3421. Supervised credit.
``Sec. 3422. Market placement.
``Sec. 3423. Recordkeeping of loans by gender of borrower.
``Sec. 3424. Crop insurance requirement.
``Sec. 3425. Loan and loan servicing limitations.
``Sec. 3426. Short form certification of farm program borrower
compliance.
``Sec. 3427. Underwriting forms and standards.
``Sec. 3428. Beginning farmer individual development accounts pilot
program.
``Sec. 3429. Farmer loan pilot projects.
``Sec. 3430. Authorization of appropriations and allocation of funds.
``Subtitle B--Rural Development
``Chapter 1--Rural Community Programs
``Sec. 3501. Water and waste disposal loans, loan guarantees, and
grants.
``Sec. 3502. Community facilities loans, loan guarantees, and grants.
``Sec. 3503. Health care services.
``Chapter 2--Rural Business and Cooperative Development
``Sec. 3601. Business programs.
``Sec. 3602. Rural business investment program.
``Chapter 3--General Rural Development Provisions
``Sec. 3701. General provisions for loans and grants.
``Sec. 3702. Strategic economic and community development.
``Sec. 3703. Guaranteed rural development loans.
``Sec. 3704. Rural Development Insurance Fund.
``Sec. 3705. Rural economic area partnership zones.
``Sec. 3706. Streamlining applications and improving accessibility of
rural development programs.
``Chapter 4--Delta Regional Authority
``Sec. 3801. Definitions.
``Sec. 3802. Delta Regional Authority.
``Sec. 3803. Economic and community development grants.
``Sec. 3804. Supplements to Federal grant programs.
``Sec. 3805. Local development districts; certification and
administrative expenses.
``Sec. 3806. Distressed counties and areas and nondistressed counties.
``Sec. 3807. Development planning process.
``Sec. 3808. Program development criteria.
``Sec. 3809. Approval of development plans and projects.
``Sec. 3810. Consent of States.
``Sec. 3811. Records.
``Sec. 3812. Annual report.
``Sec. 3813. Authorization of appropriations.
``Sec. 3814. Termination of authority.
``Chapter 5--Northern Great Plains Regional Authority
``Sec. 3821. Definitions.
``Sec. 3822. Northern Great Plains Regional Authority.
``Sec. 3823. Interstate cooperation for economic opportunity and
efficiency.
``Sec. 3824. Economic and community development grants.
``Sec. 3825. Supplements to Federal grant programs.
``Sec. 3826. Multistate and local development districts and
organizations and Northern Great Plains Inc.
``Sec. 3827. Distressed counties and areas and nondistressed counties.
``Sec. 3828. Development planning process.
``Sec. 3829. Program development criteria.
``Sec. 3830. Approval of development plans and projects.
``Sec. 3831. Consent of States.
``Sec. 3832. Records.
``Sec. 3833. Annual report.
``Sec. 3834. Authorization of appropriations.
``Sec. 3835. Termination of authority.
``Subtitle C--General Provisions
``Sec. 3901. Full faith and credit.
``Sec. 3902. Purchase and sale of guaranteed portions of loans.
``Sec. 3903. Administration.
``Sec. 3904. Loan moratorium and policy on foreclosures.
``Sec. 3905. Oil and gas royalty payments on loans.
``Sec. 3906. Taxation.
``Sec. 3907. Conflicts of interest.
``Sec. 3908. Loan summary statements.
``Sec. 3909. Certified lenders program.
``Sec. 3910. Loans to resident aliens.
``Sec. 3911. Expedited clearing of title to inventory property.
``Sec. 3912. Prohibition on use of loans for certain purposes.
``Sec. 3913. Transfer of land to Secretary.
``Sec. 3914. Competitive sourcing limitations.
``Sec. 3915. Regulations.
``SEC. 3002. DEFINITIONS.
``In this title (unless the context otherwise requires):
``(1) Able to obtain credit elsewhere.--The term `able to
obtain credit elsewhere' means able to obtain a loan from a
production credit association, a Federal land bank, or other
responsible cooperative or private credit source (or, in the
case of a borrower under section 3106, the borrower may be
able to obtain a loan under section 3101) at reasonable rates
and terms, taking into consideration prevailing private and
cooperative rates and terms in the community in or near which
the applicant resides for loans for similar purposes and
periods of time.
``(2) Agricultural credit insurance fund.--The term
`Agricultural Credit Insurance Fund' means the fund
established under section 3401.
``(3) Approved lender.--The term `approved lender' means--
``(A) a lender approved prior to October 28, 1992, by the
Secretary under the approved lender program established by
exhibit A to subpart B of part 1980 of title 7, Code of
Federal Regulations (as in effect on January 1, 1991); or
``(B) a lender certified under section 3909.
``(4) Aquaculture.--The term `aquaculture' means the
culture or husbandry of aquatic animals or plants by private
industry for commercial purposes, including the culture and
growing of fish by private industry for the purpose of
creating or augmenting publicly owned and regulated stocks of
fish.
``(5) Beginning farmer.--The term `beginning farmer' has
the meaning given the term by the Secretary.
``(6) Borrower.--
``(A) In general.--Except as provided in subparagraph (B),
the term `borrower' means an individual or entity who has an
outstanding obligation to the Secretary under any loan made
or guaranteed under this title, without regard to whether the
loan has been accelerated.
``(B) Exclusions.--The term `borrower' does not include an
individual or entity all of whose loans and accounts have
been foreclosed on or liquidated, voluntarily or otherwise.
``(7) County committee.--The term `county committee' means
the appropriate county committee established under section
8(b)(5) of the Soil Conservation and Domestic Allotment Act
(16 U.S.C. 590h(b)(5)).
``(8) Debt forgiveness.--
``(A) In general.--Except as provided in subparagraph (B),
the term `debt forgiveness' means reducing or terminating a
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
3411;
``(ii) compromising, adjusting, reducing, or charging-off a
debt or claim under section 3903;
``(iii) paying a loss on a guaranteed loan under this
title; 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.
``(9) Department.--The term `Department' means the
Department of Agriculture.
``(10) Direct loan.--The term `direct loan' means a loan
made by the Secretary from appropriated funds.
``(11) Entity.--The term `entity' means a corporation, farm
cooperative, partnership, joint operation, governmental
entity, or other legal organization, as determined by the
Secretary.
``(12) Farm.--The term `farm' means an operation involved
in--
``(A) the production of an agricultural commodity;
``(B) ranching; or
``(C) aquaculture.
``(13) Farmer.--The term `farmer' means an individual or
entity engaged primarily and directly in--
``(A) the production of an agricultural commodity;
``(B) ranching; or
``(C) aquaculture.
``(14) Farmer program loan.--The term `farmer program loan'
means--
``(A) a farm ownership loan under section 3101;
``(B) a conservation loan under section 3103;
``(C) an operating loan under section 3201;
``(D) an emergency loan under section 3301;
``(E) an economic emergency loan under section 202 of the
Emergency Agricultural
[[Page S4053]]
Credit Adjustment Act of 1978 (7 U.S.C. prec. 1961 note;
Public Law 95-334);
``(F) a loan for a farm service building under section 502
of the Housing Act of 1949 (42 U.S.C. 1472);
``(G) an economic opportunity loan under section 602 of the
Economic Opportunity Act of 1964 (Public Law 88 452; 42
U.S.C. 2942 note) (as it existed before the amendment made by
section 683(a) of the Omnibus Budget Reconciliation Act of
1981 (Public Law 97 35; 95 Stat. 519));
``(H) a softwood timber loan under section 608 of the
Agricultural Programs Adjustment Act of 1984 (7 U.S.C. 1981
note; Public Law 98 258); or
``(I) any other loan described in section 343(a)(10) of
this title (as it existed before the amendment made by
section 2 of the Agriculture Reform, Food, and Jobs Act of
2012) that is outstanding on the date of enactment of that
Act.
``(15) Farm service agency.--The term `Farm Service Agency'
means the offices of the Farm Service Agency to which the
Secretary delegates responsibility to carry out this title.
``(16) Governmental entity.--The term `governmental entity'
means any agency of the United States, a State, or a unit of
local government of a State, or subdivision thereof.
``(17) Guarantee.--The term `guarantee' means guaranteeing
the payment of a loan originated, held, and serviced by a
private financial agency, or lender, approved by the
Secretary.
``(18) Highly erodible land.--The term `highly erodible
land' has the meaning given the term in section 1201(a) of
the Food Security Act of 1985 (16 U.S.C. 3801(a)).
``(19) Homestead retention.--The term `homestead retention'
means homestead retention as authorized under section 3414.
``(20) Indian tribe.--The term `Indian tribe' means a
Federal and State-recognized Indian tribe or other federally
recognized Indian tribal group (including a Tribal College or
University, as defined in section 316(b) of the Higher
Education Act of 1965 (20 U.S.C. 1059c(b)).
``(21) Loan service program.--The term `loan service
program' means, with respect to a farmer program loan
borrower, a primary loan service program or a homestead
retention program.
``(22) Natural or major disaster or emergency.--The term
`natural or major disaster or emergency' means--
``(A) a disaster due to nonmanmade causes declared by the
Secretary; or
``(B) 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.).
``(23) Primary loan service program.--The term `primary
loan service program' means, with respect to a farmer program
loan--
``(A) loan consolidation, rescheduling, or reamortization;
``(B) interest rate reduction, including the use of the
limited resource program;
``(C) loan restructuring, including deferral, set aside, or
writing down of the principal or accumulated interest
charges, or both, of the loan; or
``(D) any combination of actions described in subparagraphs
(A), (B), and (C).
``(24) Prime farmland.--The term `prime farmland' means
prime farmland and unique farmland (as defined in subsections
(a) and (b) of section 657.5 of title 7, Code of Federal
Regulations (1980)).
``(25) Project.--For purposes of section 3501, the term
`project' includes a facility providing central service or a
facility serving an individual property, or both.
``(26) Qualified beginning farmer.--The term `qualified
beginning farmer' means an applicant, regardless of whether
the applicant is participating in a program under section
3107, who--
``(A) is eligible for assistance under this title;
``(B) has not operated a farm, or has operated a farm for
not more than 10 years;
``(C) in the case of a cooperative, corporation,
partnership, or joint operation, has members, stockholders,
partners, or joint operators who are all related to each
other by blood or marriage;
``(D) in the case of a farmer who is the owner and operator
of a farm--
``(i) in the case of a loan made to an individual,
individually or with the immediate family of the applicant--
``(I) materially and substantially participates in the
operation of the farm; and
``(II) provides substantial day-to-day labor and management
of the farm, consistent with the practices in the State or
county in which the farm is located; or
``(ii)(I) in the case of a loan made to a cooperative,
corporation, partnership, or joint operation, has members,
stockholders, partners, or joint operators who materially and
substantially participate in the operation of the farm; and
``(II) in the case of a loan made to a corporation, has
stockholders who all qualify individually as beginning
farmers;
``(E) in the case of an applicant seeking to become an
owner and operator of a farm--
``(i) in the case of a loan made to an individual,
individually or with the immediate family of the applicant,
will--
``(I) materially and substantially participate in the
operation of the farm; and
``(II) provide substantial day-to-day labor and management
of the farm, consistent with the practices in the State or
county in which the farm is located; or
``(ii)(I) in the case of a loan made to a cooperative,
corporation, partnership, or joint operation, will have
members, stockholders, partners, or joint operators who will
materially and substantially participate in the operation of
the farm; and
``(II) in the case of a loan made to a corporation, has
stockholders who will all qualify individually as beginning
farmers;
``(F) agrees to participate in such loan assessment,
borrower training, and financial management programs as the
Secretary may require;
``(G)(i) does not own farm land; or
``(ii) directly or through interests in family farm
corporations, owns farm land, the aggregate acreage of which
does not exceed 30 percent of the average acreage of the
farms, as the case may be, in the county in which the farm
operations of the applicant are located, as reported in the
most recent census of agriculture taken in accordance with
the Census of Agriculture Act of 1997 (7 U.S.C. 2204g et
seq.), except that this subparagraph shall not apply to a
loan made or guaranteed under chapter 2 of subtitle A; and
``(H) demonstrates that the available resources of the
applicant and any spouse of the applicant are not sufficient
to enable the applicant to farm on a viable scale.
``(27) Recreational purpose.--For purposes of section 3410,
the term `recreational purpose' has the meaning provided by
the Secretary, but shall include hunting.
``(28) Rural and rural area.--
``(A) In general.--Subject to any determination made under
subparagraph (B), the terms `rural' and `rural area' mean any
area other than--
``(i) a city or town that has a population of greater than
50,000 inhabitants; and
``(ii) any urbanized area contiguous and adjacent to a city
or town described in clause (i).
``(B) Determination of areas rural in character.--
``(i) In general.--If part of an area described in
subparagraph (A)(ii) was eligible under the definitions of
the terms `rural' and `rural area' in section 343 (as in
effect on the day before the date of enactment of the
Agriculture Reform, Food, and Jobs Act of 2012) for community
facility, water and waste disposal, and broadband programs,
that area shall remain eligible unless the Secretary, acting
through the Under Secretary for Rural Development (referred
to in this subparagraph as the `Under Secretary'), determines
the area is no longer rural, based on the criteria described
in clause (iii).
``(ii) Other areas.--On petition of a unit of local
government in an urbanized area described in subparagraph
(A)(ii), or on the initiative of the Under Secretary, the
Under Secretary may determine that part of an area is rural,
based on the criteria described in clause (iii).
``(iii) Criteria.--In making a determination under clause
(i), the Under Secretary shall consider--
``(I) population density;
``(II) economic conditions, favoring a rural determination
for areas facing--
``(aa) chronic unemployment in excess of statewide
averages;
``(bb) sudden loss of employment from natural disaster or
the loss of a significant employer in the area; or
``(cc) chronic poverty demonstrated at the census block or
county level compared to statewide median household income;
and
``(III) commuting patterns, favoring a rural determination
for areas that can demonstrate higher proportions of the
population living and working in the area.
``(iv) Administration.--In carrying out this subparagraph,
the Under Secretary shall--
``(I) not delegate the authority to carry out this
subparagraph;
``(II) not make a determination under clause (i) until the
date that is 3 years after the date of enactment of the
Agriculture Reform, Food, and Jobs Act of 2012;
``(III) consult with the applicable rural development State
or regional director of the Department and the Governor of
the respective State;
``(IV) provide an opportunity to appeal to the Under
Secretary a determination made under this subparagraph;
``(V) release to the public notice of a petition filed or
initiative of the Under Secretary under this subparagraph not
later than 30 days after receipt of the petition or the
commencement of the initiative, as appropriate;
``(VI) make a determination under this subparagraph not
less than 15 days, and not more than 60 days, after the
release of the notice under subclause (V); and
``(VII) submit to the Committee on Agriculture of the House
of Representatives and the Committee on Agriculture,
Nutrition, and Forestry of the Senate an annual report on
actions taken to carry out this subparagraph.
``(v) Hawaii and puerto rico.--Notwithstanding any other
provision of this subsection, within the areas of the County
of Honolulu, Hawaii, and the Commonwealth of Puerto Rico, the
Under Secretary may designate any part of the areas as a
rural area if the Under Secretary determines that the part is
not urban in character, other than any area included in the
Honolulu Census Designated Place or the San Juan Census
Designated Place.
[[Page S4054]]
``(C) Exclusions.--Notwithstanding any other provision of
this paragraph, in determining which census blocks in an
urbanized area are not in a rural area (as defined in this
paragraph), the Secretary shall exclude any cluster of census
blocks that would otherwise be considered not in a rural area
only because the cluster is adjacent to not more than 2
census blocks that are otherwise considered not in a rural
area under this paragraph.
``(29) Seasoned direct loan borrower.--The term `seasoned
direct loan borrower' means a borrower who could reasonably
be expected to qualify for commercial credit using criteria
determined by the Secretary.
``(30) Secretary.--The term `Secretary' means the Secretary
of Agriculture.
``(31) Socially disadvantaged farmer.--The term `socially
disadvantaged farmer' means a farmer who is a member of a
socially disadvantaged group.
``(32) Socially disadvantaged group.--The term `socially
disadvantaged group' means a group whose members have been
subjected to racial, ethnic, or gender prejudice because of
the identity of the members as members of a group without
regard to the individual qualities of the members.
``(33) Solar energy.--The term `solar energy' means energy
derived from sources (other than fossil fuels) and
technologies included in the Federal Nonnuclear Energy
Research and Development Act of 1974 (42 U.S.C. 5901 et
seq.).
``(34) State.--The term `State' means--
``(A) in this title (other than subtitle A), each of the 50
States, the Commonwealth of Puerto Rico, the Virgin Islands,
Guam, American Samoa, the Commonwealth of the Northern
Mariana Islands, the Republic of the Marshall Islands, the
Federated States of Micronesia, and the Republic of Palau;
and
``(B) in subtitle A, each of the 50 States, the
Commonwealth of Puerto Rico, the Virgin Islands, Guam,
American Samoa, the Commonwealth of the Northern Mariana
Islands, and, to the extent the Secretary determines it to be
feasible and appropriate, the Republic of the Marshall
Islands, the Federated States of Micronesia, and the Republic
of Palau.
``(35) State beginning farmer program.--The term `State
beginning farmer program' means any program that is--
``(A) carried out by, or under contract with, a State; and
``(B) designed to assist qualified beginning farmers in
obtaining the financial assistance necessary to enter
agriculture and establish viable farming operations.
``(36) Veteran.--The term `veteran' has the meaning given
the term in section 101 of title 38, United States Code.
``(37) Wetland.--The term `wetland' has the meaning given
the term in section 1201(a) of the Food Security Act of 1985
(16 U.S.C. 3801(a)).
``(38) Wildlife.--The term `wildlife' means fish or
wildlife (as defined in section 2(a) of the Lacey Act
Amendments of 1981 (16 U.S.C. 3371(a))).
``Subtitle B--Rural Development
``CHAPTER 1--RURAL COMMUNITY PROGRAMS
``SEC. 3501. WATER AND WASTE DISPOSAL LOANS, LOAN GUARANTEES,
AND GRANTS.
``(a) In General.--The Secretary may make grants and loans
and issue loan guarantees (including a guarantee of a loan
financed by the net proceeds of a bond described in section
142(a) of the Internal Revenue Code of 1986) to eligible
entities described in subsection (b) for projects in rural
areas that primarily serve rural residents to provide for--
``(1) the development, storage, treatment, purification, or
distribution of water or the collection, treatment, or
disposal of waste; and
``(2) financial assistance and other aid in the planning of
projects for purposes described in paragraph (1).
``(b) Eligible Entities.--Entities eligible for assistance
described in subsection (a) are--
``(1) associations (including corporations not operated for
profit);
``(2) Indian tribes;
``(3) public and quasi-public agencies; and
``(4) in the case of a project to attach an individual
property in a rural area to a water system to alleviate a
health risk, an individual.
``(c) Loan and Loan Guarantee Requirements.--In connection
with loans made or guaranteed under this section, the
Secretary shall require the applicant--
``(1) to certify in writing, and the Secretary shall
determine, that the applicant is unable to obtain sufficient
credit elsewhere to finance the actual needs of the applicant
at reasonable rates and terms, taking into consideration
prevailing private and cooperative rates and terms in the
community in or near which the applicant resides for loans
for similar purposes and periods of time; and
``(2) to furnish an appropriate written financial
statement.
``(d) Grant Amounts.--
``(1) Maximum.--Except as otherwise provided in this
subsection, the amount of any grant made under this section
shall not exceed 75 percent of the development cost of the
project for which the grant is provided.
``(2) Grant rate.--The Secretary shall establish the grant
rate for each project in conformity with regulations issued
by the Secretary that shall provide for a graduated scale of
grant rates that establish higher rates for projects in
communities that have--
``(A) lower community population;
``(B) higher rates of outmigration; and
``(C) lower income levels.
``(3) Local share requirements.--Grants made under this
section may be used to pay the local share requirements of
another Federal grant-in-aid program to the extent permitted
under the law providing for the grant-in-aid program.
``(e) Special Grants.--
``(1) Revolving funds for financing water and wastewater
projects.--
``(A) In general.--The Secretary may make grants to
qualified, nonprofit entities in rural areas to capitalize
revolving funds for the purpose of providing financing to
eligible entities for--
``(i) predevelopment costs associated with proposed water
and wastewater projects or with existing water and wastewater
systems; and
``(ii) short-term costs incurred for replacement equipment,
small-scale extension services, or other small capital
projects that are not part of the regular operations and
maintenance activities of existing water and wastewater
systems.
``(B) Maximum amount of financing.--The amount of financing
made to an eligible entity under this paragraph shall not
exceed--
``(i) $100,000 for costs described in subparagraph (A)(i);
and
``(ii) $100,000 for costs described in subparagraph
(A)(ii).
``(C) Term.--The term of financing provided to an eligible
entity under this paragraph shall not exceed 10 years.
``(D) Administration.--The Secretary shall limit the amount
of grant funds that may be used by a grant recipient for
administrative costs incurred under this paragraph.
``(E) Annual report.--A nonprofit entity receiving a grant
under this paragraph shall submit to the Secretary an annual
report that describes the number and size of communities
served and the type of financing provided.
``(F) Authorization of appropriations.--There is authorized
to be appropriated to carry out this paragraph $30,000,000
for each of fiscal years 2013 through 2017.
``(2) Emergency and imminent community water assistance
program.--
``(A) In general.--The Secretary shall provide grants in
accordance with this paragraph to assist the residents of
rural areas and small communities to secure adequate
quantities of safe water--
``(i) after a significant decline in the quantity or
quality of water available from the water supplies of the
rural areas and small communities, or when such a decline is
imminent; or
``(ii) when repairs, partial replacement, or significant
maintenance efforts on established water systems would
remedy--
``(I) an acute or imminent shortage of quality water; or
``(II) a significant or imminent decline in the quantity or
quality of water that is available.
``(B) Priority.--In carrying out subparagraph (A), the
Secretary shall--
``(i) give priority to projects described in subparagraph
(A)(i); and
``(ii) provide at least 70 percent of all grants under this
paragraph to those projects.
``(C) Eligibility.--To be eligible to obtain a grant under
this paragraph, an applicant shall--
``(i) be a public or private nonprofit entity; and
``(ii) in the case of a grant made under subparagraph
(A)(i), demonstrate to the Secretary that the decline
referred to in that subparagraph occurred, or will occur, not
later than 2 years after the date on which the application
was filed for the grant.
``(D) Uses.--
``(i) In general.--Grants made under this paragraph may be
used--
``(I) for waterline extensions from existing systems,
laying of new waterlines, repairs, significant maintenance,
digging of new wells, equipment replacement, and hook and tap
fees;
``(II) for any other appropriate purpose associated with
developing sources of, treating, storing, or distributing
water;
``(III) to assist communities in complying with the
requirements of the Federal Water Pollution Control Act (33
U.S.C. 1251 et seq.) or the Safe Drinking Water Act (42
U.S.C. 300f et seq.); and
``(IV) to provide potable water to communities through
other means.
``(ii) Joint proposals.--
``(I) In general.--Subject to the restrictions in
subparagraph (E), nothing in this paragraph precludes rural
communities from submitting joint proposals for emergency
water assistance.
``(II) Consideration of restrictions.--The restrictions in
subparagraph (E) shall be considered in the aggregate,
depending on the number of communities involved.
``(E) Restrictions.--
``(i) Maximum income.--No grant provided under this
paragraph shall 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.
``(ii) Set-aside for smaller communities.--Not less than 50
percent of the funds allocated under this paragraph shall be
allocated to rural communities with populations that do not
exceed 3,000 inhabitants.
``(F) Maximum grants.--Grants made under this paragraph may
not exceed--
[[Page S4055]]
``(i) in the case of each grant made under subparagraph
(A)(i), $500,000; and
``(ii) in the case of each grant made under subparagraph
(A)(ii), $150,000.
``(G) Full funding.--Subject to subparagraph (F), grants
under this paragraph shall be made in an amount equal to 100
percent of the costs of the projects conducted under this
paragraph.
``(H) Application.--
``(i) Nationally competitive application process.--
``(I) In general.--The Secretary shall develop a nationally
competitive application process to award grants under this
paragraph.
``(II) Requirements.--The process shall include criteria
for evaluating applications, including population, median
household income, and the severity of the decline, or
imminent decline, in the quantity or quality of water.
``(ii) Timing of review of applications.--
``(I) Simplified application.--The application process
developed by the Secretary under clause (i) shall include a
simplified application form that will permit expedited
consideration of an application for a grant filed under this
paragraph.
``(II) Priority review.--In processing applications for any
water or waste grant or loan authorized under this section,
the Secretary shall afford priority processing to an
application for a grant under this paragraph to the extent
funds will be available for an award on the application at
the conclusion of priority processing.
``(III) Timing.--The Secretary shall, to the maximum extent
practicable, review and act on an application under this
paragraph not later than 60 days after the date on which the
application is submitted to the Secretary.
``(I) Funding.--
``(i) Reservation.--
``(I) In general.--For each fiscal year, not less than 3
nor more than 5 percent of the total amount made available to
carry out this section for the fiscal year shall be reserved
for grants under this paragraph.
``(II) Release.--Funds reserved under subclause (I) for a
fiscal year shall be reserved only until July 1 of the fiscal
year.
``(ii) Authorization of appropriations.--In addition to
funds made available under clause (i), there is authorized to
be appropriated to carry out this paragraph $35,000,000 for
each of fiscal years 2013 through 2017.
``(3) Water and waste facility loans and grants to
alleviate health risks.--
``(A) Definition of cooperative.--In this paragraph, the
term `cooperative' means a cooperative formed specifically
for the purpose of the installation, expansion, improvement,
or operation of water supply or waste disposal facilities or
systems.
``(B) Loans and grants to persons other than individuals.--
``(i) In general.--The Secretary shall make or guarantee
loans and make grants to provide for the conservation,
development, use, and control of water (including the
extension or improvement of existing water supply systems)
and the installation or improvement of drainage or waste
disposal facilities and essential community facilities,
including necessary related equipment, training, and
technical assistance to--
``(I) rural water supply corporations, cooperatives, or
similar entities;
``(II) Indian tribes on Federal or State reservations and
other federally recognized Indian tribes;
``(III) rural or native villages in the State of Alaska;
``(IV) native tribal health consortiums;
``(V) public agencies; and
``(VI) Native Hawaiian Home Lands.
``(ii) Eligible projects.--Loans and grants described in
clause (i) shall be available only to provide the described
water and waste facilities and services to communities whose
residents face significant health risks, as determined by the
Secretary, due to the fact that a significant proportion of
the residents of the community do not have access to, or are
not served by, adequate affordable--
``(I) water supply systems; or
``(II) waste disposal facilities.
``(iii) Matching requirements.--For entities described
under subclauses (III), (IV), or (V) of clause (i) to be
eligible to receive a grant for water supply systems or waste
disposal facilities, the State in which the project will
occur shall provide 25 percent in matching funds from non-
Federal sources.
``(iv) Certain areas targeted.--
``(I) In general.--Loans and grants under clause (i) shall
be made only if the loan or grant funds will be used
primarily to provide water or waste services, or both, to
residents of a county or census area--
``(aa) the per capita income of the residents of which is
not more than 70 percent of the national average per capita
income, as determined by the Department of Commerce; and
``(bb) the unemployment rate of the residents of which is
not less than 125 percent of the national average
unemployment rate, as determined by the Bureau of Labor
Statistics.
``(II) Exceptions.--Notwithstanding subclause (I), loans
and grants under clause (i) may also be made if the loan or
grant funds will be used primarily to provide water or waste
services, or both, to residents of--
``(aa) a rural area that was recognized as a colonia as of
October 1, 1989; or
``(bb) an area described under subclause (II), (III), or
(VI) of clause (i).
``(C) Loans and grants to individuals.--
``(i) In general.--The Secretary shall make or guarantee
loans and make grants to individuals who reside in a
community described in subparagraph (B)(i) for the purpose of
extending water supply and waste disposal systems, connecting
the systems to the residences of the individuals, or
installing plumbing and fixtures within the residences of the
individuals to facilitate the use of the water supply and
waste disposal systems.
``(ii) Interest.--Loans described in clause (i) shall be at
a rate of interest no greater than the Federal Financing Bank
rate on loans of a similar term at the time the loans are
made.
``(iii) Amortization.--The repayment of loans described in
clause (i) shall be amortized over the expected life of the
water supply or waste disposal system to which the residence
of the borrower will be connected.
``(iv) Manner in which loans and grants are to be made.--
Loans and grants to individuals under clause (i) shall be
made--
``(I) directly to the individuals by the Secretary; or
``(II) to the individuals through the rural water supply
corporation, cooperative, or similar entity, or public
agency, providing the water supply or waste disposal
services, pursuant to regulations issued by the Secretary.
``(D) Preference.--The Secretary shall give preference in
the awarding of loans and grants under subparagraphs (B) and
(C) to entities described in clause (i) of subparagraph (B)
that propose to provide water supply or waste disposal
services to the residents of Indian reservations, rural or
native villages in the State of Alaska, Native Hawaiian Home
Lands, and those rural subdivisions commonly referred to as
colonias, that are characterized by substandard housing,
inadequate roads and drainage, and a lack of adequate water
or waste facilities.
``(E) Relationship to other authority.--Notwithstanding any
other provision of law, the head of any Federal agency may
enter into interagency agreements with Federal, State,
tribal, and other entities to share resources, including
transferring and accepting funds, equipment, or other
supplies, to carry out the activities described in this
paragraph.
``(F) Authorization of appropriations.--There are
authorized to be appropriated--
``(i) for grants under this paragraph, $60,000,000 for each
fiscal year;
``(ii) for loans under this paragraph, $60,000,000 for each
fiscal year; and
``(iii) in addition to grants provided under clause (i),
for grants under this section to benefit Indian tribes,
$20,000,000 for each fiscal year.
``(4) Solid waste management grants.--
``(A) In general.--The Secretary may make grants to
nonprofit organizations for the provision of regional
technical assistance to local and regional governments and
related agencies for the purpose of reducing or eliminating
pollution of water resources and improving the planning and
management of solid waste disposal facilities in rural areas.
``(B) Technical assistance grant amounts.--Grants made
under this paragraph for the provision of technical
assistance shall be made for 100 percent of the cost of the
technical assistance.
``(C) Authorization of appropriations.--There is authorized
to be appropriated to carry out this paragraph $10,000,000
for each of fiscal years 2013 through 2017
``(5) Rural water and wastewater technical assistance and
training programs.--
``(A) Grants to nonprofits.--
``(i) In general.--The Secretary may make grants to
nonprofit organizations to enable the organizations to
provide to associations that provide water and wastewater
services in rural areas technical assistance and training--
``(I) to identify, and evaluate alternative solutions to,
problems relating to the obtaining, storage, treatment,
purification, or distribution of water or the collection,
treatment, or disposal of waste in rural areas;
``(II) to prepare applications to receive financial
assistance for any purpose specified in subsection (a)(1)
from any public or private source; and
``(III) to improve the operation and maintenance practices
at any existing works for the storage, treatment,
purification, or distribution of water or the collection,
treatment, or disposal of waste in rural areas.
``(ii) Selection priority.--In selecting recipients of
grants to be made under clause (i), the Secretary shall give
priority to nonprofit organizations that have experience in
providing the technical assistance and training described in
clause (i) to associations serving rural areas in which--
``(I) residents have low income; and
``(II) water supply systems or waste facilities are
unhealthful.
``(iii) Funding.--
``(I) In general.--Except as provided in subclause (II),
not less than 1 nor more than 3 percent of any funds made
available to carry out water and waste disposal projects
described in subsection (a) for any fiscal year shall be
reserved for grants under this paragraph.
``(II) Exception.--The minimum amount specified in
subclause (I) shall not apply if the aggregate amount of
grant funds requested by applications that qualify for grants
received by the Secretary from eligible nonprofit
organizations for the fiscal year totals less than 1 percent
of those funds.
[[Page S4056]]
``(B) Rural water and wastewater circuit rider program.--
``(i) In general.--The Secretary shall continue a national
rural water and wastewater circuit rider program that--
``(I) is consistent with the activities and results of the
program conducted before January 1, 2012, as determined by
the Secretary; and
``(II) received funding from the Secretary, acting through
the Administrator of the Rural Utilities Service.
``(ii) Authorization of appropriations.--There is
authorized to be appropriated to carry out this subparagraph
$25,000,000 for fiscal year 2013 and each fiscal year
thereafter.
``(6) SEARCH program.--
``(A) In general.--The Secretary may establish a Special
Evaluation Assistance for Rural Communities and Households
(SEARCH) program to make predevelopment planning grants for
feasibility studies, design assistance, and technical
assistance, to financially distressed communities in rural
areas with populations of 2,500 or fewer inhabitants for
water and waste disposal projects described in this section.
``(B) Terms.--
``(i) Documentation.--With respect to grants made under
this paragraph, the Secretary shall require the lowest
quantity of documentation practicable.
``(ii) Matching.--Notwithstanding any other provision of
this section, the Secretary may fund up to 100 percent of the
eligible costs of grants provided under this paragraph, as
determined by the Secretary.
``(iii) Funding.--The Secretary may use not more than 4
percent of the total amount of funds made available for a
fiscal year for water, waste disposal, and essential
community facility activities under this chapter to carry out
this paragraph.
``(C) Relationship to other authority.--
``(i) In general.--The funds and authorities provided under
this paragraph are in addition to any other funds or
authorities the Secretary may have to carry out activities
described in this section.
``(ii) Authorized activities.--The Secretary may furnish
financial assistance or other aid in planning projects for
the purposes described in subparagraph (A).
``(f) Priority.--In making grants and loans, and
guaranteeing loans, for water, wastewater, and waste disposal
projects under this section, the Secretary shall give
priority consideration to projects that serve rural
communities that, as determined by the Secretary--
``(1) have a population of less than 5,500 permanent
residents;
``(2) have a community water, wastewater, or waste disposal
system that--
``(A) is experiencing--
``(i) an unanticipated reduction in the quality of water,
the quantity of water, or the ability to deliver water; or
``(ii) some other deterioration in the supply of water to
the community;
``(B) is not adequate to meet the needs of the community;
and
``(C) requires immediate corrective action;
``(3) are experiencing outmigration;
``(4) have a high percentage of low-income residents; or
``(5) are isolated from other significant population
centers.
``(g) Curtailment or Limitation of Service Prohibited.--The
service provided or made available through any such
association shall not be curtailed or limited by inclusion of
the area served by such association within the boundaries of
any municipal corporation or other public body, or by the
granting of any private franchise for similar service within
such area during the term of such loan; nor shall the
happening of any such event be the basis of requiring such
association to secure any franchise, license, or permit as a
condition to continuing to serve the area served by the
association at the time of the occurrence of such event.
``(h) Authorization of Appropriations.--There are
authorized to be appropriated to carry out this section such
sums as are necessary.
``SEC. 3502. COMMUNITY FACILITIES LOANS, LOAN GUARANTEES, AND
GRANTS.
``(a) In General.--The Secretary may make grants and loans
and issue loan guarantees (including a guarantee of a loan
financed by the net proceeds of a bond described in section
142(a) of the Internal Revenue Code of 1986) to eligible
entities described in subsection (b) for projects in rural
areas that primarily serve rural residents to provide for--
``(1) essential community facilities, including--
``(A) necessary equipment;
``(B) recreational developments; and
``(2) financial assistance and other assistance in the
planning of projects for purposes described in this section.
``(b) Eligible Entities.--Entities eligible for assistance
described in subsection (a) are--
``(1) associations (including corporations not operated for
profit);
``(2) Indian tribes (including groups of individuals
described in paragraph (4) of section 815 of the Native
American Programs Act of 1974 (42 U.S.C. 2992c)); and
``(3) public and quasi-public agencies.
``(c) Loan and Loan Guarantee Requirements.--
``(1) In general.--In connection with loans made or
guaranteed under this section, the Secretary shall require
the applicant--
``(A) to certify in writing, and the Secretary shall
determine, that the applicant is unable to obtain sufficient
credit elsewhere to finance the actual needs of the
applicant; and
``(B) to furnish an appropriate written financial
statement.
``(2) Debt restructuring and loan servicing for community
facility loans.--The Secretary shall establish and implement
a program that is similar to the program established under
section 3411, except that the debt restructuring and loan
servicing procedures shall apply to delinquent community
facility program loans to a hospital or health care facility
under subsection (a).
``(d) Grant Amounts.--
``(1) Maximum.--Except as otherwise provided in this
subsection, the amount of any grant made under this section
shall not exceed 75 percent of the development cost of the
project for which the grant is provided.
``(2) Grant rate.--The Secretary shall establish the grant
rate for each project in conformity with regulations issued
by the Secretary that shall provide for a graduated scale of
grant rates that establish higher rates for projects in
communities that have--
``(A) low community population;
``(B) high rates of outmigration; and
``(C) low income levels.
``(3) Local share requirements.--Grants made under this
section may be used to pay the local share requirements of
another Federal grant-in-aid program to the extent permitted
under the law providing for the grant-in-aid program.
``(e) Priority.--In making grants and loans, and
guaranteeing loans under this section, the Secretary shall
give priority consideration to projects that serve rural
communities that--
``(1) have a population of less than 20,000 permanent
residents;
``(2) are experiencing outmigration;
``(3) have a high percentage of low-income residents; or
``(4) are isolated from other significant population
centers.
``(f) Tribal Colleges and Universities.--
``(1) In general.--The Secretary may make grants to an
entity that is a Tribal College or University (as defined in
section 316(b) of the Higher Education Act of 1965 (20 U.S.C.
1059c(b))) to provide the Federal share of the cost of
developing specific Tribal College or University essential
community facilities in rural areas.
``(2) Federal share.--The Secretary shall establish the
maximum percentage of the cost of the project that may be
covered by a grant under this subsection, except that the
Secretary may not require non-Federal financial support in an
amount that is greater than 5 percent of the total cost of
the project.
``(3) Authorization of appropriations.--There is authorized
to be appropriated to carry out this subsection $10,000,000
for each of fiscal years 2013 through 2017.
``(g) Technical Assistance for Community Facilities
Projects.--
``(1) In general.--Subject to paragraph (2), the Secretary
may use funds made available for community facilities
programs authorized under this section to provide technical
assistance to applicants and participants for community
facilities programs.
``(2) Funding.--The Secretary may use not more than 3
percent of the amount of funds made available to participants
for a fiscal year for a community facilities program to
provide technical assistance described in paragraph (1).
``(h) Authorization of Appropriations.--There are
authorized to be appropriated to carry out this section such
sums as are necessary.
``SEC. 3503. HEALTH CARE SERVICES.
``(a) Purpose.--The purpose of this section is to address
the continued unmet health needs in the Delta region through
cooperation among health care professionals, institutions of
higher education, research institutions, and other
individuals and entities in the region.
``(b) Definition of Eligible Entity.--In this section, the
term `eligible entity' means a consortium of regional
institutions of higher education, academic health and
research institutes, and economic development entities
located in the Delta region that have experience in
addressing the health care issues in the region.
``(c) Grants.--To carry out the purpose described in
subsection (a), the Secretary may award a grant to an
eligible entity for--
``(1) the development of--
``(A) health care services;
``(B) health education programs; and
``(C) health care job training programs; and
``(2) the development and expansion of public health-
related facilities in the Delta region to address
longstanding and unmet health needs of the region.
``(d) Use.--As a condition of the receipt of the grant, the
eligible entity shall use the grant to fund projects and
activities described in subsection (c), based on input
solicited from local governments, public health care
providers, and other entities in the Delta region.
``(e) Authorization of Appropriations.--There is authorized
to be appropriated to the Secretary to carry out this section
$3,000,000 for each of fiscal years 2013 through 2017.
``CHAPTER 2--RURAL BUSINESS AND COOPERATIVE DEVELOPMENT
``SEC. 3601. BUSINESS PROGRAMS.
``(a) Rural Business Development Grants.--
[[Page S4057]]
``(1) In general.--The Secretary may make grants under this
subsection to eligible entities described in paragraph (2) in
rural areas that primarily serve rural areas for purposes
described in paragraph (3).
``(2) Eligible entities.--The Secretary may make grants
under this subsection to--
``(A) governmental entities;
``(B) Indian tribes; and
``(C) nonprofit entities.
``(3) Eligible purposes for grants.--Eligible entities that
receive grants under this subsection may use the grant funds
for--
``(A) business opportunity projects that--
``(i) identify and analyze business opportunities;
``(ii) identify, train, and provide technical assistance to
existing or prospective rural entrepreneurs and managers;
``(iii) assist in the establishment of new rural businesses
and the maintenance of existing businesses, including through
business support centers;
``(iv) conduct regional, community, and local economic
development planning and coordination, and leadership
development; and
``(v) establish centers for training, technology, and trade
that will provide training to rural businesses in the use of
interactive communications technologies to develop
international trade opportunities and markets; and
``(B) projects that support the development of business
enterprises that finance or facilitate--
``(i) the development of small and emerging private
business enterprise;
``(ii) the establishment, expansion, and operation of rural
distance learning networks;
``(iii) the development of rural learning programs that
provide educational instruction or job training instruction
related to potential employment or job advancement to adult
students; and
``(iv) the provision of technical assistance and training
to rural communities for the purpose of improving passenger
transportation services or facilities.
``(4) Authorization of appropriations.--There is authorized
to be appropriated to the Secretary to carry out this
subsection $65,000,000 for each of fiscal years 2013 through
2017, to remain available until expended.
``(b) Value-added Agricultural Producer Grants.--
``(1) Definitions.--In this subsection:
``(A) Mid-tier value chain.--The term `mid-tier value
chain' means a local and regional supply network that links
independent producers with businesses and cooperatives that
market value-added agricultural products in a manner that--
``(i) targets and strengthens the profitability and
competitiveness of small- and medium-sized farms that are
structured as family farms; and
``(ii) obtains agreement from an eligible agricultural
producer group, farmer cooperative, or majority-controlled
producer-based business venture that is engaged in the value
chain on a marketing strategy.
``(B) Producer.--The term `producer' means a farmer.
``(C) Value-added agricultural product.--The term `value-
added agricultural product' means any agricultural commodity
or product--
``(i) that--
``(I) has undergone a change in physical state;
``(II) was produced in a manner that enhances the value of
the agricultural commodity or product, as demonstrated
through a business plan that shows the enhanced value, as
determined by the Secretary;
``(III) is physically segregated in a manner that results
in the enhancement of the value of the agricultural commodity
or product;
``(IV) is a source of farm-based renewable energy,
including E 85 fuel; or
``(V) is aggregated and marketed as a locally produced
agricultural food product; and
``(ii) for which, as a result of the change in physical
state or the manner in which the agricultural commodity or
product was produced, marketed, or segregated--
``(I) the customer base for the agricultural commodity or
product is expanded; and
``(II) a greater portion of the revenue derived from the
marketing, processing, or physical segregation of the
agricultural commodity or product is available to the
producer of the commodity or product.
``(2) Grants.--
``(A) In general.--The Secretary may make grants under this
subsection to--
``(i) independent producers of value-added agricultural
products; and
``(ii) an agricultural producer group, farmer cooperative,
or majority-controlled producer-based business venture, as
determined by the Secretary.
``(B) Grants to a producer.--A grantee under subparagraph
(A)(i) shall use the grant--
``(i) to develop a business plan or perform a feasibility
study to establish a viable marketing opportunity (including
through mid-tier value chains) for value-added agricultural
products; or
``(ii) to provide capital to establish alliances or
business ventures that allow the producer to better compete
in domestic or international markets.
``(C) Grants to an agricultural producer group, cooperative
or producer-based business venture.--A grantee under
subparagraph (A)(ii) shall use the grant--
``(i) to develop a business plan for viable marketing
opportunities in emerging markets for a value-added
agricultural product; or
``(ii) to develop strategies that are intended to create
marketing opportunities in emerging markets for the value-
added agricultural product.
``(D) Award selection.--
``(i) Priority.--In awarding grants under this subsection,
the Secretary shall give priority to projects--
``(I) that contribute to increasing opportunities for
operators of small- and medium-sized farms that are
structured as family farms; or
``(II) at least \1/4\ of the recipients of which are
beginning farmers or socially disadvantaged farmers.
``(ii) Ranking.--In evaluating and ranking proposals under
this subsection, the Secretary shall provide substantial
weight to the priorities described in clause (i).
``(E) Amount of grant.--
``(i) In general.--The total amount provided to a grant
recipient under this subsection shall not exceed $500,000.
``(ii) Majority-controlled, producer-based business
ventures.--The total amount of all grants provided to
majority-controlled, producer-based business ventures under
this subsection for a fiscal year shall not exceed 10 percent
of the amount of funds used to make all grants for the fiscal
year under this subsection.
``(F) Term.--The term of a grant under this paragraph shall
not exceed 3 years.
``(G) Simplified application.--The Secretary shall offer a
simplified application form and process for project proposals
requesting less than $50,000 under this subsection.
``(3) Funding.--
``(A) Authorization of appropriations.--There is authorized
to be appropriated to carry out this subsection $40,000,000
for each of fiscal years 2013 through 2017.
``(B) Reservation of funds for projects to benefit
beginning farmers, socially disadvantaged farmers, and mid-
tier value chains.--
``(i) In general.--The Secretary shall reserve 10 percent
of the amounts made available for each fiscal year under this
subsection to fund projects that benefit beginning farmers or
socially disadvantaged farmers.
``(ii) Mid-tier value chains.--The Secretary shall reserve
10 percent of the amounts made available for each fiscal year
under this subsection to fund applications of eligible
entities described in paragraph (2) that propose to develop
mid-tier value chains.
``(iii) Unobligated amounts.--Any amounts in the reserves
for a fiscal year established under clauses (i) and (ii) that
are not obligated by June 30 of the fiscal year shall be
available to the Secretary to make grants under this
subsection to eligible entities in any State, as determined
by the Secretary.
``(c) 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--
``(i) the several States; and
``(ii) the District of Columbia.
``(2) Grants.--The Secretary shall make grants under this
subsection to nonprofit institutions for the purpose of
enabling the nonprofit 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.--
``(A) In general.--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 1 or more centers for
cooperative development.
``(B) Requirements.--The Secretary may approve an
application if the plan contains the following:
``(i) A provision that substantiates that the center will
effectively serve rural areas in the United States.
``(ii) A provision that the primary objective of the center
will be to improve the economic condition of rural areas
through cooperative development.
``(iii) A description of the activities that the center
will carry out to accomplish the objective, which may include
programs--
``(I) 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) 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) providing training and instruction for individuals,
cooperatives, small businesses, and other similar entities in
rural areas served by the center;
[[Page S4058]]
``(IV) providing loans and grants to individuals,
cooperatives, small businesses, and other similar entities in
rural areas served by the center;
``(V) providing technical assistance, research services,
and advisory services to individuals, cooperatives, small
businesses, and other similar entities in rural areas served
by the center; and
``(VI) providing for the coordination of services and
sharing of information by the center.
``(iv) 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.
``(v) Provisions that the center, in carrying out the
activities, will seek, if appropriate, the advice,
participation, expertise, and assistance of representatives
of business, industry, educational institutions, the Federal
Government, and State and local governments.
``(vi) 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.
``(vii) Provisions for--
``(I) monitoring and evaluating the activities by the
nonprofit institution operating the center; and
``(II) accounting for funds received by the institution
under this section.
``(5) Awarding grants.--
``(A) In general.--Grants made under paragraph (2) shall be
made on a competitive basis.
``(B) Preference.--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--
``(i) demonstrate a proven track record in carrying out
activities to promote and assist the development of
cooperatively and mutually owned businesses;
``(ii) demonstrate previous expertise in providing
technical assistance in rural areas to promote and assist the
development of cooperatively and mutually owned businesses;
``(iii) demonstrate the ability to assist in the retention
of businesses, facilitate the establishment of cooperatives
and new cooperative approaches, and generate employment
opportunities that will improve the economic conditions of
rural areas;
``(iv) commit to providing technical assistance and other
services to underserved and economically distressed areas in
rural areas of the United States;
``(v) demonstrate a commitment to--
``(I) networking with and sharing the results of the
efforts of the center with other cooperative development
centers and other organizations involved in rural economic
development efforts; and
``(II) developing multiorganization and multistate
approaches to addressing the economic development and
cooperative needs of rural areas; and
``(vi) commit to providing a 25 percent matching
contribution with private funds and in-kind contributions,
except that the Secretary shall not require non-Federal
financial support in an amount that is greater than 5 percent
in the case of a 1994 institution (as defined in section 532
of the Equity in Educational Land-Grant Status Act of 1994 (7
U.S.C. 301 note; Public Law 103 382)).
``(6) Grant period.--
``(A) In general.--A grant awarded to a center that has
received no prior funding under this subsection shall be made
for a period of 1 year.
``(B) Multiyear grants.--If the Secretary determines it to
be in the best interest of the program, the Secretary shall
award grants for a period of more than 1 year, but not more
than 3 years, to a center that has successfully met the
requirements of paragraph (5)(B), as determined by the
Secretary.
``(7) Authority to extend grant period.--The Secretary may
extend for 1 additional 12-month period the period during
which a grantee may use a grant made under this subsection.
``(8) Technical assistance to prevent excessive
unemployment or underemployment.--
``(A) In general.--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.
``(B) Inclusions.--The assistance may include planning and
feasibility studies, management and operational assistance,
and studies evaluating the need for the development potential
of projects that increase employment and improve economic
growth in the areas.
``(9) Grants to defray administrative costs.--
``(A) In general.--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.
``(B) Cost-sharing.--For purposes of determining the non-
Federal share of the costs, the Secretary shall include
contributions in cash and in kind, fairly evaluated,
including premises, equipment, and services.
``(10) Cooperative research program.--The Secretary shall
offer to enter into a cooperative research agreement with 1
or more qualified academic institutions in each fiscal year
to conduct research on the effects of all types of
cooperatives on the national economy.
``(11) Addressing needs of minority communities.--
``(A) In general.--If the total amount appropriated under
paragraph (13) for a fiscal year exceeds $7,500,000, the
Secretary shall reserve an amount equal to 20 percent of the
total amount appropriated for grants for cooperative
development centers, individual cooperatives, or groups of
cooperatives--
``(i) that serve socially disadvantaged groups; and
``(ii) a majority of the boards of directors or governing
boards of which are comprised of individuals who are members
of socially disadvantaged groups.
``(B) Insufficient applications.--To the extent there are
insufficient applications to carry out subparagraph (A), the
Secretary shall use the funds as otherwise authorized by this
subsection.
``(12) Interagency working group.--Not later than 90 days
after the date of enactment of the Agriculture Reform, Food,
and Jobs Act of 2012, the Secretary shall coordinate and
chair an interagency working group to foster cooperative
development and ensure coordination with Federal agencies and
national and local cooperative organizations that have
cooperative programs and interests.
``(13) Authorization of appropriations.--There is
authorized to be appropriated to carry out this subsection
$50,000,000 for each of fiscal years 2013 through 2017.
``(d) Appropriate Technology Transfer for Rural Areas
Program.--
``(1) Definition of national nonprofit agricultural
assistance institution.--In this subsection, the term
`national nonprofit agricultural assistance institution'
means an organization that--
``(A) is described in section 501(c)(3) of the Internal
Revenue Code of 1986 and exempt from taxation under 501(a) of
that Code;
``(B) has staff and offices in multiple regions of the
United States;
``(C) has experience and expertise in operating national
agricultural technical assistance programs;
``(D) expands markets for the agricultural commodities
produced by producers through the use of practices that
enhance the environment, natural resource base, and quality
of life; and
``(E) improves the economic viability of agricultural
operations.
``(2) Establishment.--The Secretary shall establish a
national appropriate technology transfer for rural areas
program to assist agricultural producers that are seeking
information--
``(A) to reduce input costs;
``(B) to conserve energy resources;
``(C) to diversify operations through new energy crops and
energy generation facilities; and
``(D) to expand markets for agricultural commodities
produced by the producers by using practices that enhance the
environment, natural resource base, and quality of life.
``(3) Implementation.--
``(A) In general.--The Secretary shall carry out the
program under this subsection by making a grant to, or
offering to enter into a cooperative agreement with, a
national nonprofit agricultural assistance institution.
``(B) Grant amount.--A grant made, or cooperative agreement
entered into, under subparagraph (A) shall provide 100
percent of the cost of providing information described in
paragraph (2).
``(4) Authorization of appropriations.--There is authorized
to be appropriated to carry out this subsection $5,000,000
for each of fiscal years 2013 through 2017.
``(e) Business and Industry Direct and Guaranteed Loans.--
``(1) Definition of business and industry loan.--In this
section, the term `business and industry loan' means a direct
loan that is made, or a loan that is guaranteed, by the
Secretary under this subsection.
``(2) Loan purposes.--The Secretary may make business and
industry loans to public, private, or cooperative
organizations organized for profit or nonprofit, private
investment funds that invest primarily in cooperative
organizations, or to individuals--
``(A) to improve, develop, or finance business, industry,
and employment and improve the economic and environmental
climate in rural communities, including pollution abatement
and control;
``(B) to conserve, develop, and use water for aquaculture
purposes in rural areas; and
``(C) to reduce the reliance on nonrenewable energy
resources by encouraging the development and construction of
renewable energy systems (including solar energy systems,
wind energy systems, and anaerobic digestors for the purpose
of energy generation), including the modification of existing
systems, in rural areas.
``(3) Loan guarantees for certain loans.--The Secretary may
guarantee loans made under this subsection to finance the
issuance of bonds for the projects described in paragraph
(2).
``(4) Maximum amount of principal.--
``(A) In general.--Except as otherwise provided in this
paragraph, no loan may be made or guaranteed under this
subsection that exceeds $25,000,000 in principal amount.
``(B) Limitations on loan guarantees for cooperative
organizations.--
[[Page S4059]]
``(i) Principal amount.--Subject to clause (ii), the
principal amount of a business and industry loan made to a
cooperative organization and guaranteed under this subsection
shall not exceed $40,000,000.
``(ii) Use.--To be eligible for a guarantee under this
subsection for a business and industry loan made to a
cooperative organization, the principal amount of the loan in
excess of $25,000,000 shall be used to carry out a project
that is in a rural area and--
``(I) provides for the value-added processing of
agricultural commodities; or
``(II) significantly benefits 1 or more entities eligible
for assistance for the purposes described in paragraph (2),
as determined by the Secretary.
``(iii) Applications.--If a cooperative organization
submits an application for a guarantee under this paragraph,
the Secretary shall make the determination whether to approve
the application, and the Secretary may not delegate this
authority.
``(iv) Maximum amount.--The total amount of business and
industry loans made to cooperative organizations and
guaranteed for a fiscal year under this subsection with
principal amounts that are in excess of $25,000,000 may not
exceed 10 percent of the total amount of business and
industry loans guaranteed for the fiscal year under this
subsection.
``(5) Fees.--The Secretary may assess a 1-time fee and an
annual renewal fee for any guaranteed business and industry
loan in an amount that does not exceed 3 percent of the
guaranteed principal portion of the loan.
``(6) Intangible assets.--In determining whether a
cooperative organization is eligible for a guaranteed
business and industry loan, the Secretary may consider the
market value of a properly appraised brand name, patent, or
trademark of the cooperative.
``(7) Loan appraisals.--The Secretary may require that any
appraisal made in connection with a business and industry
loan be conducted by a specialized appraiser that uses
standards that are comparable to standards used for similar
purposes in the private sector, as determined by the
Secretary.
``(8) Loan guarantees for the purchase of cooperative
stock.--
``(A) In general.--The Secretary may guarantee a business
and industry loan to individual farmers to purchase capital
stock of a farmer cooperative established for the purpose of
processing an agricultural commodity.
``(B) Processing contracts during initial period.--A
cooperative described in subparagraph (A) for which a farmer
receives a guarantee to purchase stock under that
subparagraph may contract for services to process
agricultural commodities or otherwise process value added for
the period beginning on the date of the startup of the
cooperative in order to provide adequate time for the
planning and construction of the processing facility of the
cooperative.
``(C) Financial information.--Financial information
required by the Secretary from a farmer as a condition of
making a business and industry loan guarantee under this
paragraph shall be provided in the manner generally required
by commercial agricultural lenders in the applicable area.
``(9) Loans to cooperatives.--
``(A) Eligibility.--
``(i) In general.--The Secretary may make or guarantee a
business and industry loan to a cooperative organization that
is headquartered in a metropolitan area if the loan is--
``(I) used for a project or venture described in paragraph
(2) that is located in a rural area; or
``(II) a loan guarantee that meets the requirements of
paragraph (10).
``(ii) Equity.--The Secretary may guarantee a loan made for
the purchase of preferred stock or similar equity issued by a
cooperative organization or a fund that invests primarily in
cooperative organizations, if the guarantee significantly
benefits 1 or more entities eligible for assistance for the
purposes described in paragraph (2)(A), as determined by the
Secretary.
``(B) Refinancing.--A cooperative organization that is
eligible for a business and industry loan shall be eligible
to refinance an existing business and industry loan with a
lender if--
``(i) the cooperative organization--
``(I) is current and performing with respect to the
existing loan; and
``(II)(aa) is not, and has not been, in payment default,
with respect to the existing loan; or
``(bb) has not converted any of the collateral with respect
to the existing loan; and
``(ii) there is adequate security or full collateral for
the refinanced loan.
``(10) Loan guarantees in nonrural areas.--The Secretary
may guarantee a business and industry loan to a cooperative
organization for a facility that is not located in a rural
area if--
``(A) the primary purpose of the loan guarantee is for a
facility to provide value-added processing for agricultural
producers that are located within 80 miles of the facility;
``(B) the applicant demonstrates to the Secretary that the
primary benefit of the loan guarantee will be to provide
employment for residents of a rural area; and
``(C) the total amount of business and industry loans
guaranteed for a fiscal year under this paragraph does not
exceed 10 percent of the business and industry loans
guaranteed for the fiscal year under this subsection.
``(11) Locally or regionally produced agricultural food
products.--
``(A) Definitions.--In this paragraph:
``(i) Locally or regionally produced agricultural food
product.--The term `locally or regionally produced
agricultural food product' means any agricultural food
product that is raised, produced, and distributed in--
``(I) the locality or region in which the final product is
marketed, so that the total distance that the product is
transported is less than 400 miles from the origin of the
product; or
``(II) the State in which the product is produced.
``(ii) Underserved community.--The term `underserved
community' means a community (including an urban or rural
community and an Indian tribal community) that, as determined
by the Secretary, has--
``(I) limited access to affordable, healthy foods,
including fresh fruits and vegetables, in grocery retail
stores or farmer-to-consumer direct markets; and
``(II) a high rate of hunger or food insecurity or a high
poverty rate.
``(B) Loan and loan guarantee program.--
``(i) In general.--The Secretary shall make or guarantee
loans to individuals, cooperatives, cooperative
organizations, businesses, and other entities to establish
and facilitate enterprises that process, distribute,
aggregate, store, and market locally or regionally produced
agricultural food products to support community development
and farm income.
``(ii) Requirement.--The recipient of a loan or loan
guarantee under this paragraph shall include in an
appropriate agreement with retail and institutional
facilities to which the recipient sells locally or regionally
produced agricultural food products a requirement to inform
consumers of the retail or institutional facilities that the
consumers are purchasing or consuming locally or regionally
produced agricultural food products.
``(iii) Priority.--In making or guaranteeing a loan under
this paragraph, the Secretary shall give priority to projects
that have components benefitting underserved communities.
``(iv) Reports.--Not later than 2 years after the date of
enactment of the Agriculture Reform, Food, and Jobs Act of
2012 and annually thereafter, the Secretary shall submit to
the Committee on Agriculture of the House of Representatives
and the Committee on Agriculture, Nutrition, and Forestry of
the Senate, and publish on the Internet, a report that
describes projects carried out using loans or loan guarantees
made under clause (i), including--
``(I) summary information about all projects;
``(II) the characteristics of the communities served; and
``(III) resulting benefits.
``(v) Reservation of funds.--For each of fiscal years 2012
through 2017, the Secretary shall reserve not less than 5
percent of the total amount of funds made available to carry
out this subsection to carry out this paragraph until April 1
of the fiscal year.
``(vi) Outreach.--The Secretary shall develop and implement
an outreach plan to publicize the availability of loans and
loan guarantees under this paragraph, working closely with
rural cooperative development centers, credit unions,
community development financial institutions, regional
economic development authorities, and other financial and
economic development entities.
``(12) Authorization of appropriations.--There is
authorized to be appropriated to carry out this subsection
$75,000,000 for each of fiscal years 2013 through 2017.
``(f) Relending Programs.--
``(1) Intermediate relending program.--
``(A) In general.--The Secretary may make or guarantee
loans to eligible entities described in subparagraph (B) so
that the eligible entities may relend the funds to
individuals and entities for the purposes described in
subparagraph (C).
``(B) Eligible entities.--Entities eligible for loans and
loan guarantees described in subparagraph (A) are--
``(i) public agencies;
``(ii) Indian tribes;
``(iii) cooperatives; and
``(iv) nonprofit corporations.
``(C) Eligible purposes.--The proceeds from loans made or
guaranteed by the Secretary pursuant to subparagraph (A) may
be relent by eligible entities for projects that--
``(i) predominately serve communities in rural areas; and
``(ii) as determined by the Secretary--
``(I) promote community development;
``(II) establish new businesses;
``(III) establish and support microlending programs; and
``(IV) create or retain employment opportunities.
``(D) Authorization of appropriations.--There is authorized
to be appropriated to carry out this subsection $50,000,000
for each of fiscal years 2013 through 2017.
``(2) Rural microentrepreneur assistance program.--
``(A) Definitions.--In this paragraph:
``(i) Microentrepreneur.--The term `microentrepreneur'
means an owner and operator, or prospective owner and
operator, of a rural microenterprise who is unable to obtain
sufficient training, technical assistance, or credit other
than under this subsection, as determined by the Secretary.
[[Page S4060]]
``(ii) Microenterprise development organization.--The term
`microenterprise development organization' means an
organization that is--
``(I) a nonprofit entity;
``(II) an Indian tribe, the tribal government of which
certifies to the Secretary that--
``(aa) no microenterprise development organization serves
the Indian tribe; and
``(bb) no rural microentrepreneur assistance program exists
under the jurisdiction of the Indian tribe;
``(III) a public institution of higher education; or
``(IV) a collaboration of rural nonprofit entities serving
a region or State, if 1 lead nonprofit entity is the sole
underwriter of all loans and is responsible for associated
risks.
``(iii) Microloan.--The term `microloan' means a business
loan of not more than $50,000 that is provided to a rural
microenterprise.
``(iv) Program.--The term `program' means the rural
microentrepreneur assistance program established under
subparagraph (B).
``(v) Rural microenterprise.--The term `rural
microenterprise' means a business entity with not more than
10 full-time equivalent employees located in a rural area.
``(vi) Training.--The term `training' means teaching broad
business principles or general business skills in a group or
public setting.
``(vii) Technical assistance.--The term `technical
assistance' means working with a business client in a 1-to-1
manner to provide business and financial management
counseling, assist in the preparation of business or
marketing plans, or provide other skills tailored to an
individual microentrepreneur.
``(B) Rural microentrepreneur assistance program.--
``(i) Establishment.--The Secretary shall establish a rural
microentrepreneur assistance program to provide loans and
grants to support microentrepreneurs in the development and
ongoing success of rural microenterprises.
``(ii) Purpose.--The purpose of the program is to provide
microentrepreneurs with--
``(I) the skills necessary to establish new rural
microenterprises; and
``(II) continuing technical and financial assistance
related to the successful operation of rural
microenterprises.
``(iii) Loans.--
``(I) In general.--The Secretary shall make loans to
microenterprise development organizations for the purpose of
providing fixed-interest rate microloans to
microentrepreneurs for startup and growing rural
microenterprises.
``(II) Loan terms.--A loan made by the Secretary to a
microenterprise development organization under this
subparagraph shall--
``(aa) be for a term not to exceed 20 years; and
``(bb) bear an annual interest rate of at least 1 percent.
``(III) Loan loss reserve fund.--The Secretary shall
require each microenterprise development organization that
receives a loan under this subparagraph to--
``(aa) establish a loan loss reserve fund; and
``(bb) maintain the reserve fund in an amount equal to at
least 5 percent of the outstanding balance of such loans owed
by the microenterprise development organization, until all
obligations owed to the Secretary under this subparagraph are
repaid.
``(IV) Deferral of interest and principal.--The Secretary
may permit the deferral of payments on principal and interest
due on a loan to a microenterprise development organization
made under this paragraph for a 2-year period beginning on
the date on which the loan is made.
``(iv) Grants to support rural microenterprise
development.--
``(I) In general.--The Secretary shall make grants to
microenterprise development organizations--
``(aa) to provide training and technical assistance, and
other related services to rural microentrepreneurs; and
``(bb) to carry out such other projects and activities as
the Secretary determines appropriate to further the purposes
of the program.
``(II) Selection.--In making grants under subclause (I),
the Secretary shall--
``(aa) place an emphasis on microenterprise development
organizations that serve microentrepreneurs that are located
in rural areas that have suffered significant outward
migration, as determined by the Secretary; and
``(bb) ensure, to the maximum extent practicable, that
grant recipients include microenterprise development
organizations of varying sizes and that serve racially and
ethnically diverse populations.
``(v) Grants to assist microentrepreneurs.--
``(I) In general.--The Secretary shall make annual grants
to microenterprise development organizations to provide
technical assistance to microentrepreneurs that--
``(aa) received a loan from the microenterprise development
organization under subparagraph (B)(iii); or
``(bb) are seeking a loan from the microenterprise
development organization under subparagraph (B)(iii).
``(II) Maximum amount of technical assistance grant.--The
maximum amount of a grant under this clause shall be in an
amount equal to not more than 25 percent of the total
outstanding balance of microloans made by the microenterprise
development organization under clause (iii), as of the date
the grant is awarded.
``(vi) Administrative expenses.--Not more than 10 percent
of a grant received by a microenterprise development
organization for a fiscal year under this subparagraph may be
used to pay administrative expenses.
``(C) Administration.--
``(i) Matching requirement.--As a condition of any grant
made under clauses (iv) and (v) of subparagraph (B), the
Secretary shall require the microenterprise development
organization to match not less than 15 percent of the total
amount of the grant in the form of matching funds (including
community development block grants), indirect costs, or in-
kind goods or services.
``(ii) Oversight.--At a minimum, not later than December 1
of each fiscal year, a microenterprise development
organization that receives a loan or grant under this section
shall provide to the Secretary such information as the
Secretary may require to ensure that assistance provided
under this section is used for the purposes for which the
loan or grant was made.
``(D) Authorization of appropriations.--There is authorized
to be appropriated to carry out this paragraph $40,000,000
for each of fiscal years 2013 through 2017.
``SEC. 3602. RURAL BUSINESS INVESTMENT PROGRAM.
``(a) Definitions.--In this section:
``(1) Articles.--The term `articles' means articles of
incorporation for an incorporated body or the functional
equivalent or other similar documents specified by the
Secretary for other business entities.
``(2) Developmental venture capital.--The term
`developmental venture capital' means capital in the form of
equity capital investments in rural business investment
companies with an objective of fostering economic development
in rural areas.
``(3) Employee welfare benefit plan; pension plan.--
``(A) In general.--The terms `employee welfare benefit
plan' and `pension plan' have the meanings given the terms in
section 3 of the Employee Retirement Income Security Act of
1974 (29 U.S.C. 1002).
``(B) Inclusions.--The terms `employee welfare benefit
plan' and `pension plan' include--
``(i) public and private pension or retirement plans
subject to this subtitle; and
``(ii) similar plans not covered by this subtitle that have
been established, and that are maintained, by the Federal
Government or any State (including by a political
subdivision, agency, or instrumentality of the Federal
Government or a State) for the benefit of employees.
``(4) Equity capital.--The term `equity capital' means
common or preferred stock or a similar instrument, including
subordinated debt with equity features.
``(5) Leverage.--The term `leverage' includes--
``(A) debentures purchased or guaranteed by the Secretary;
``(B) participating securities purchased or guaranteed by
the Secretary; and
``(C) preferred securities outstanding as of the date of
enactment of the Agriculture Reform, Food, and Jobs Act of
2012.
``(6) License.--The term `license' means a license issued
by the Secretary in accordance with in subsection (d)(5).
``(7) Limited liability company.--The term `limited
liability company' means a business entity that is organized
and operating in accordance with a State limited liability
company law approved by the Secretary.
``(8) Member.--The term `member' means, with respect to a
rural business investment company that is a limited liability
company, a holder of an ownership interest, or a person
otherwise admitted to membership in the limited liability
company.
``(9) Operational assistance.--The term `operational
assistance' means management, marketing, and other technical
assistance that assists a rural business concern with
business development.
``(10) Participation agreement.--The term `participation
agreement' means an agreement, between the Secretary and a
rural business investment company granted final approval
under subsection (d)(5), that requires the rural business
investment company to make investments in smaller enterprises
in rural areas.
``(11) Private capital.--
``(A) In general.--The term `private capital' means the
total of--
``(i)(I) the paid-in capital and paid-in surplus of a
corporate rural business investment company;
``(II) the contributed capital of the partners of a
partnership rural business investment company; or
``(III) the equity investment of the members of a limited
liability company rural business investment company; and
``(ii) unfunded binding commitments from investors that
meet criteria established by the Secretary to contribute
capital to the rural business investment company, except
that--
``(I) unfunded commitments may be counted as private
capital for purposes of approval by the Secretary of any
request for leverage; but
``(II) leverage shall not be funded based on the
commitments.
``(B) Exclusions.--The term `private capital' does not
include--
``(i) any funds borrowed by a rural business investment
company from any source;
[[Page S4061]]
``(ii) any funds obtained through the issuance of leverage;
or
``(iii) any funds obtained directly or indirectly from the
Federal Government or any State (including by a political
subdivision, agency, or instrumentality of the Federal
Government or a State), except for--
``(I) funds obtained from the business revenues (excluding
any governmental appropriation) of any Federally chartered or
government-sponsored enterprise established prior to the date
of enactment of the Agriculture Reform, Food, and Jobs Act of
2012;
``(II) funds invested by an employee welfare benefit plan
or pension plan; and
``(III) any qualified nonprivate funds (if the investors of
the qualified nonprivate funds do not control, directly or
indirectly, the management, board of directors, general
partners, or members of the rural business investment
company).
``(12) Qualified nonprivate funds.--The term `qualified
nonprivate funds' means any--
``(A) funds directly or indirectly invested in any
applicant or rural business investment company on or before
the date of enactment of the Agriculture Reform, Food, and
Jobs Act of 2012 by any Federal agency, other than the
Department, under a provision of law explicitly mandating the
inclusion of those funds in the definition of the term
`private capital'; and
``(B) funds invested in any applicant or rural business
investment company by 1 or more entities of any State
(including by a political subdivision, agency, or
instrumentality of the State and including any guarantee
extended by those entities) in an aggregate amount that does
not exceed 33 percent of the private capital of the applicant
or rural business investment company.
``(13) Rural business concern.--The term `rural business
concern' means--
``(A) a public, private, or cooperative for-profit or
nonprofit organization;
``(B) a for-profit or nonprofit business controlled by an
Indian tribe; or
``(C) any other person or entity that primarily operates in
a rural area, as determined by the Secretary.
``(14) Rural business investment company.--The term `rural
business investment company' means a company that--
``(A) has been granted final approval by the Secretary
under subsection (d)(5); and
``(B) has entered into a participation agreement with the
Secretary.
``(15) Smaller enterprise.--
``(A) In general.--The term `smaller enterprise' means any
rural business concern that, together with its affiliates--
``(i) has--
``(I) a net financial worth of not more than $6,000,000, as
of the date on which assistance is provided under this
section to the rural business concern; and
``(II) except as provided in subparagraph (B), an average
net income for the 2-year period preceding the date on which
assistance is provided under this section to the rural
business concern, of not more than $2,000,000, after Federal
income taxes (excluding any carryover losses); or
``(ii) satisfies the standard industrial classification
size standards established by the Administrator of the Small
Business Administration for the industry in which the rural
business concern is primarily engaged.
``(B) Exception.--For purposes of subparagraph (A)(i)(II),
if the rural business concern is not required by law to pay
Federal income taxes at the enterprise level, but is required
to pass income through to the shareholders, partners,
beneficiaries, or other equitable owners of the business
concern, the net income of the business concern shall be
determined by allowing a deduction in an amount equal to the
total of--
``(i) if the rural business concern is not required by law
to pay State (and local, if any) income taxes at the
enterprise level, the product obtained by multiplying--
``(I) the net income (determined without regard to this
subparagraph); by
``(II) the marginal State income tax rate (or by the
combined State and local income tax rates, as applicable)
that would have applied if the business concern were a
corporation; and
``(ii) the product obtained by multiplying--
``(I) the net income (so determined) less any deduction for
State (and local) income taxes calculated under clause (i);
by
``(II) the marginal Federal income tax rate that would have
applied if the rural business concern were a corporation.
``(b) Purposes.--The purposes of the Rural Business
Investment Program established under this section are--
``(1) to promote economic development and the creation of
wealth and job opportunities in rural areas and among
individuals living in those areas by encouraging
developmental venture capital investments in smaller
enterprises primarily located in rural areas; and
``(2) to establish a developmental venture capital program,
with the mission of addressing the unmet equity investment
needs of small enterprises located in rural areas, by
authorizing the Secretary--
``(A) to enter into participation agreements with rural
business investment companies;
``(B) to guarantee debentures of rural business investment
companies to enable each rural business investment company to
make developmental venture capital investments in smaller
enterprises in rural areas; and
``(C) to make grants to rural business investment
companies, and to other entities, for the purpose of
providing operational assistance to smaller enterprises
financed, or expected to be financed, by rural business
investment companies.
``(c) Establishment.--In accordance with this subtitle, the
Secretary shall establish a Rural Business Investment
Program, under which the Secretary may--
``(1) enter into participation agreements with companies
granted final approval under subsection (d)(5) for the
purposes described in subsection (b);
``(2) guarantee the debentures issued by rural business
investment companies as provided in subsection (e); and
``(3) make grants to rural business investment companies,
and to other entities, under subsection (h).
``(d) Selection of Rural Business Investment Companies.--
``(1) Eligibility.--A company shall be eligible to apply to
participate, as a rural business investment company, in the
program established under this section if--
``(A) the company is a newly formed for-profit entity or a
newly formed for-profit subsidiary of such an entity;
``(B) the company has a management team with experience in
community development financing or relevant venture capital
financing; and
``(C) the company will invest in enterprises that will
create wealth and job opportunities in rural areas, with an
emphasis on smaller enterprises.
``(2) Application.--To participate, as a rural business
investment company, in the program established under this
section, a company meeting the eligibility requirements of
paragraph (1) shall submit an application to the Secretary
that includes--
``(A) a business plan describing how the company intends to
make successful developmental venture capital investments in
identified rural areas;
``(B) information regarding the community development
finance or relevant venture capital qualifications and
general reputation of the management of the company;
``(C) a description of how the company intends to work with
community-based organizations and local entities (including
local economic development companies, local lenders, and
local investors) and to seek to address the unmet equity
capital needs of the communities served;
``(D) a proposal describing how the company intends to use
the grant funds provided under this section to provide
operational assistance to smaller enterprises financed by the
company, including information regarding whether the company
intends to use licensed professionals, as necessary, on the
staff of the company or from an outside entity;
``(E) with respect to binding commitments to be made to the
company under this section, an estimate of the ratio of cash
to in-kind contributions;
``(F) a description of the criteria to be used to evaluate
whether and to what extent the company meets the purposes of
the program established under this section;
``(G) information regarding the management and financial
strength of any parent firm, affiliated firm, or any other
firm essential to the success of the business plan of the
company; and
``(H) such other information as the Secretary may require.
``(3) Status.--Not later than 90 days after the initial
receipt by the Secretary of an application under this
subsection, the Secretary shall provide to the applicant a
written report describing the status of the application and
any requirements remaining for completion of the application.
``(4) Matters considered.--In reviewing and processing any
application under this subsection, the Secretary shall--
``(A) determine whether--
``(i) the applicant meets the requirements of paragraph
(5); and
``(ii) the management of the applicant is qualified and has
the knowledge, experience, and capability necessary to comply
with this section;
``(B) take into consideration--
``(i) the need for and availability of financing for rural
business concerns in the geographic area in which the
applicant is to commence business;
``(ii) the general business reputation of the owners and
management of the applicant; and
``(iii) the probability of successful operations of the
applicant, including adequate profitability and financial
soundness; and
``(C) not take into consideration any projected shortage or
unavailability of grant funds or leverage.
``(5) Approval; license.--
``(A) In general.--Except as provided in subparagraph (B),
the Secretary may approve an applicant to operate as a rural
business investment company under this subtitle and license
the applicant as a rural business investment company, if--
``(i) the Secretary determines that the application
satisfies the requirements of paragraph (2);
``(ii) the area in which the rural business investment
company is to conduct its operations, and establishment of
branch offices or agencies (if authorized by the articles),
are approved by the Secretary; and
``(iii) the applicant enters into a participation agreement
with the Secretary.
``(B) Capital requirements.--
``(i) In general.--Notwithstanding any other provision of
this section, the Secretary
[[Page S4062]]
may approve an applicant to operate as a rural business
investment company under this section and designate the
applicant as a rural business investment company, if the
Secretary determines that the applicant--
``(I) has private capital as determined by the Secretary;
``(II) would otherwise be approved under this section,
except that the applicant does not satisfy the requirements
of subsection (i)(3); and
``(III) has a viable business plan that--
``(aa) reasonably projects profitable operations; and
``(bb) has a reasonable timetable for achieving a level of
private capital that satisfies the requirements of subsection
(i)(3).
``(ii) Leverage.--An applicant approved under clause (i)
shall not be eligible to receive leverage under this section
until the applicant satisfies the requirements of section
3602(i)(3).
``(iii) Grants.--An applicant approved under clause (i)
shall be eligible for grants under subsection (h) in
proportion to the private capital of the applicant, as
determined by the Secretary.
``(e) Debentures.--
``(1) In general.--The Secretary may guarantee the timely
payment of principal and interest, as scheduled, on
debentures issued by any rural business investment company.
``(2) Terms and conditions.--The Secretary may make
guarantees under this subsection on such terms and conditions
as the Secretary considers appropriate, except that the term
of any debenture guaranteed under this section shall not
exceed 15 years.
``(3) Full faith and credit of the united states.--Section
3901 shall apply to any guarantee under this subsection.
``(4) Maximum guarantee.--Under this subsection, the
Secretary may--
``(A) guarantee the debentures issued by a rural business
investment company only to the extent that the total face
amount of outstanding guaranteed debentures of the rural
business investment company does not exceed the lesser of--
``(i) 300 percent of the private capital of the rural
business investment company; or
``(ii) $105,000,000; and
``(B) provide for the use of discounted debentures.
``(f) Issuance and Guarantee of Trust Certificates.--
``(1) Issuance.--The Secretary may issue trust certificates
representing ownership of all or a fractional part of
debentures issued by a rural business investment company and
guaranteed by the Secretary under this section, if the
certificates are based on and backed by a trust or pool
approved by the Secretary and composed solely of guaranteed
debentures.
``(2) Guarantee.--
``(A) In general.--The Secretary may, under such terms and
conditions as the Secretary considers appropriate, guarantee
the timely payment of the principal of and interest on trust
certificates issued by the Secretary or agents of the
Secretary for purposes of this subsection.
``(B) Limitation.--Each guarantee under this paragraph
shall be limited to the extent of principal and interest on
the guaranteed debentures that compose the trust or pool.
``(C) Prepayment or default.--
``(i) In general.--
``(I) Authority to prepay.--A debenture may be prepaid at
any time without penalty.
``(II) Reduction of guarantee.--Subject to subclause (I),
if a debenture in a trust or pool is prepaid, or in the event
of default of such a debenture, the guarantee of timely
payment of principal and interest on the trust certificates
shall be reduced in proportion to the amount of principal and
interest the prepaid debenture represents in the trust or
pool.
``(ii) Interest.--Interest on prepaid or defaulted
debentures shall accrue and be guaranteed by the Secretary
only through the date of payment of the guarantee.
``(iii) Redemption.--At any time during the term of a trust
certificate, the trust certificate may be called for
redemption due to prepayment or default of all debentures.
``(3) Full faith and credit of the united states.--Section
3901 shall apply to any guarantee of a trust certificate
issued by the Secretary under this section.
``(4) Subrogation and ownership rights.--
``(A) Subrogation.--If the Secretary pays a claim under a
guarantee issued under this section, the claim shall be
subrogated fully to the rights satisfied by the payment.
``(B) Ownership rights.--No Federal, State, or local law
shall preclude or limit the exercise by the Secretary of the
ownership rights of the Secretary in a debenture residing in
a trust or pool against which 1 or more trust certificates
are issued under this subsection.
``(5) Management and administration.--
``(A) Registration.--The Secretary shall provide for a
central registration of all trust certificates issued under
this subsection.
``(B) Creation of pools.--The Secretary may--
``(i) maintain such commercial bank accounts or investments
in obligations of the United States as may be necessary to
facilitate the creation of trusts or pools backed by
debentures guaranteed under this subtitle; and
``(ii) issue trust certificates to facilitate the creation
of those trusts or pools.
``(C) Fidelity bond or insurance requirement.--Any agent
performing functions on behalf of the Secretary under this
paragraph shall provide a fidelity bond or insurance in such
amount as the Secretary considers to be necessary to fully
protect the interests of the United States.
``(D) Regulation of brokers and dealers.--The Secretary may
regulate brokers and dealers in trust certificates issued
under this subsection.
``(E) Electronic registration.--Nothing in this paragraph
prohibits the use of a book-entry or other electronic form of
registration for trust certificates issued under this
subsection.
``(g) Fees.--
``(1) In general.--The Secretary may charge a fee that does
not exceed $500 with respect to any guarantee or grant issued
under this section.
``(2) Trust certificate.--Notwithstanding paragraph (1),
the Secretary shall not collect a fee for any guarantee of a
trust certificate under subsection (f), except that any agent
of the Secretary may collect a fee that does not exceed $500
for the functions described in subsection (f)(5)(B).
``(3) License.--
``(A) In general.--Except as provided in subparagraph (C),
the Secretary may prescribe fees to be paid by each applicant
for a license to operate as a rural business investment
company under this section.
``(B) Use of amounts.--Fees collected under this
paragraph--
``(i) shall be deposited in the account for salaries and
expenses of the Secretary;
``(ii) are authorized to be appropriated solely to cover
the costs of licensing examinations; and
``(iii) shall--
``(I) in the case of a license issued before the date of
enactment of the Agriculture Reform, Food, and Jobs Act of
2012, not exceed $500 for any fee collected under this
paragraph; and
``(II) in the case of a license issued after the date of
enactment of the Agriculture Reform, Food, and Jobs Act of
2012, be a rate as determined by the Secretary.
``(C) Prohibition on collection of certain fees.--In the
case of a license described in subparagraph (A) that was
approved before July 1, 2007, the Secretary shall not collect
any fees due on or after the date of enactment of the
Agriculture Reform, Food, and Jobs Act of 2012.
``(h) Operational Assistance Grants.--
``(1) In general.--In accordance with this subsection, the
Secretary may make grants to rural business investment
companies and to other entities, as authorized by this
section, to provide operational assistance to smaller
enterprises financed, or expected to be financed, by the
entities.
``(2) Terms.--Grants made under this subsection shall be
made over a multiyear period (not to exceed 10 years) under
such terms as the Secretary may require.
``(3) Use of funds.--The proceeds of a grant made under
this subsection may be used by the rural business investment
company receiving the grant only to provide operational
assistance in connection with an equity or prospective equity
investment in a business located in a rural area.
``(4) Submission of plans.--A rural business investment
company shall be eligible for a grant under this subsection
only if the rural business investment company submits to the
Secretary, in such form and manner as the Secretary may
require, a plan for use of the grant.
``(5) Grant amount.--
``(A) Rural business investment companies.--The amount of a
grant made under this subsection to a rural business
investment company shall be equal to the lesser of--
``(i) 10 percent of the private capital raised by the rural
business investment company; or
``(ii) $1,000,000.
``(6) Other entities.--The amount of a grant made under
this subsection to any entity other than a rural business
investment company shall be equal to the resources (in cash
or in kind) raised by the entity in accordance with the
requirements applicable to rural business investment
companies under this section.
``(i) Rural Business Investment Companies.--
``(1) Organization.--For purposes of this subsection, a
rural business investment company shall--
``(A) be an incorporated body, a limited liability company,
or a limited partnership organized and chartered or otherwise
existing under State law solely for the purpose of performing
the functions and conducting the activities authorized by
this section; and
``(B)(i) if incorporated, have succession for a period of
not less than 30 years unless earlier dissolved by the
shareholders of the rural business investment company; and
``(ii) if a limited partnership or a limited liability
company, have succession for a period of not less than 10
years; and
``(iii) possess the powers reasonably necessary to perform
the functions and conduct the activities.
``(2) Articles.--The articles of any rural business
investment company--
``(A) shall specify in general terms--
``(i) the purposes for which the rural business investment
company is formed;
``(ii) the name of the rural business investment company;
``(iii) the 1 or more areas in which the operations of the
rural business investment company are to be carried out;
[[Page S4063]]
``(iv) the place where the principal office of the rural
business investment company is to be located; and
``(v) the amount and classes of the shares of capital stock
of the rural business investment company;
``(B) may contain any other provisions consistent with this
section that the rural business investment company may
determine appropriate to adopt for the regulation of the
business of the rural business investment company and the
conduct of the affairs of the rural business investment
company; and
``(C) shall be subject to the approval of the Secretary.
``(3) Capital requirements.--
``(A) In general.--Each rural business investment company
shall be required to meet the capital requirements as
provided by the Secretary.
``(B) Time frame.--Each rural business investment company
shall have a period of 2 years to meet the capital
requirements of this paragraph.
``(C) Adequacy.--In addition to the requirements of
subparagraph (A), the Secretary shall--
``(i) determine whether the private capital of each rural
business investment company is adequate to ensure a
reasonable prospect that the rural business investment
company will be operated soundly and profitably, and managed
actively and prudently in accordance with the articles of the
rural business investment company;
``(ii) determine that the rural business investment company
will be able to comply with the requirements of this section;
``(iii) require that at least 75 percent of the capital of
each rural business investment company is invested in rural
business concerns;
``(iv) ensure that the rural business investment company is
designed primarily to meet equity capital needs of the
businesses in which the rural business investment company
invests and not to compete with traditional small business
financing by commercial lenders; and
``(v) require that the rural business investment company
makes short-term non-equity investments of less than 5 years
only to the extent necessary to preserve an existing
investment.
``(4) Diversification of ownership.--The Secretary shall
ensure that the management of each rural business investment
company licensed after the date of enactment of the
Agriculture Reform, Food, and Jobs Act of 2012 is
sufficiently diversified from and unaffiliated with the
ownership of the rural business investment company so as to
ensure independence and objectivity in the financial
management and oversight of the investments and operations of
the rural business investment company.
``(j) Financial Institution Investments.--
``(1) In general.--Except as otherwise provided in this
subsection and notwithstanding any other provision of law,
the following banks, associations, and institutions are
eligible both to establish and invest in any rural business
investment company or in any entity established to invest
solely in rural business investment companies:
``(A) Any bank or savings association the deposits of which
are insured under the Federal Deposit Insurance Act (12
U.S.C. 1811 et seq.), including an investment pool created
entirely by such bank or savings association.
``(B) Any Farm Credit System institution described in
subsection 1.2(a) of the Farm Credit Act of 1971 (12 U.S.C.
2002(a)).
``(2) Limitation.--No bank, association, or institution
described in paragraph (1) may make investments described in
paragraph (1) that are greater than 5 percent of the capital
and surplus of the bank, association, or institution.
``(3) Limitation on rural business investment companies
controlled by farm credit system institutions.--If a Farm
Credit System institution described in section 1.2(a) of the
Farm Credit Act of 1971 (12 U.S.C. 2002(a)) holds more than
25 percent of the shares of a rural business investment
company, either alone or in conjunction with other System
institutions (or affiliates), the rural business investment
company shall not provide equity investments in, or provide
other financial assistance to, entities that are not
otherwise eligible to receive financing from the Farm Credit
System under that Act (12 U.S.C. 2001 et seq.).
``(k) Examinations.--
``(1) In general.--Each rural business investment company
that participates in the program established under this
section shall be subject to examinations made at the
direction of the Secretary in accordance with this
subsection.
``(2) Assistance of private sector entities.--An
examination under this subsection may be conducted with the
assistance of a private sector entity that has the
qualifications and the expertise necessary to conduct such an
examination.
``(3) Costs.--
``(A) In general.--The Secretary may assess the cost of an
examination under this section, including compensation of the
examiners, against the rural business investment company
examined.
``(B) Payment.--Any rural business investment company
against which the Secretary assesses costs under this
subparagraph shall pay the costs.
``(4) Deposit of funds.--Funds collected under this
subsection shall--
``(A) be deposited in the account that incurred the costs
for carrying out this subsection;
``(B) be made available to the Secretary to carry out this
subsection, without further appropriation; and
``(C) remain available until expended.
``(l) Reporting Requirements.--
``(1) Rural business investment companies.--Each entity
that participates in a program established under this section
shall provide to the Secretary such information as the
Secretary may require, including--
``(A) information relating to the measurement criteria that
the entity proposed in the program application of the rural
business investment company; and
``(B) in each case in which the entity under this section
makes an investment in, or a loan or grant to, a business
that is not located in a rural area, a report on the number
and percentage of employees of the business who reside in
those areas.
``(2) Public reports.--
``(A) In general.--The Secretary shall prepare and make
available to the public an annual report on the programs
established under this section, including detailed
information on--
``(i) the number of rural business investment companies
licensed by the Secretary during the previous fiscal year;
``(ii) the aggregate amount of leverage that rural business
investment companies have received from the Federal
Government during the previous fiscal year;
``(iii) the aggregate number of each type of leveraged
instruments used by rural business investment companies
during the previous fiscal year and how each number compares
to previous fiscal years;
``(iv) the number of rural business investment company
licenses surrendered and the number of rural business
investment companies placed in liquidation during the
previous fiscal year, identifying the amount of leverage each
rural business investment company has received from the
Federal Government and the type of leverage instruments each
rural business investment company has used;
``(v) the amount of losses sustained by the Federal
Government as a result of operations under this section
during the previous fiscal year and an estimate of the total
losses that the Federal Government can reasonably expect to
incur as a result of the operations during the current fiscal
year;
``(vi) actions taken by the Secretary to maximize
recoupment of funds of the Federal Government expended to
implement and administer the Rural Business Investment
Program under this section during the previous fiscal year
and to ensure compliance with the requirements of this
section (including regulations);
``(vii) the amount of Federal Government leverage that each
licensee received in the previous fiscal year and the types
of leverage instruments each licensee used;
``(viii) for each type of financing instrument, the sizes,
types of geographic locations, and other characteristics of
the small business investment companies using the instrument
during the previous fiscal year, including the extent to
which the investment companies have used the leverage from
each instrument to make loans or equity investments in rural
areas; and
``(ix) the actions of the Secretary to carry out this
section
``(B) Prohibition.--In compiling the report required under
subparagraph (A), the Secretary may not--
``(i) compile the report in a manner that permits
identification of any particular type of investment by an
individual rural business investment company or small
business concern in which a rural business investment company
invests; or
``(ii) release any information that is prohibited under
section 1905 of title 18, United States Code.
``(m) Authorization of Appropriations.--There is authorized
to be appropriated to carry out this section $25,000,000 for
the period of fiscal years 2008 through 2017.''.
``CHAPTER 3--GENERAL RURAL DEVELOPMENT PROVISIONS
``SEC. 3701. GENERAL PROVISIONS FOR LOANS AND GRANTS.
``(a) Period for Repayment.--Unless otherwise specifically
provided for in this subtitle, the period for repayment of a
loan under this subtitle shall not exceed 40 years.
``(b) Interest Rates.--
``(1) In general.--Except as otherwise provided in this
title, the interest rate on a loan under this subtitle shall
be determined by the Secretary at a rate--
``(A) not to exceed a sum obtained by adding--
``(i) the current average market yield on outstanding
marketable obligations of the United States with remaining
periods to maturity comparable to the average maturity of the
loan; and
``(ii) an amount not to exceed 1 percent, as determined by
the Secretary; and
``(B) adjusted to the nearest \1/8\ of 1 percent.
``(2) Water and waste facility loans and community
facilities loans.--
``(A) In general.--Notwithstanding any provision of State
law limiting the rate or amount of interest that may be
charged, taken, received, or reserved, except as provided in
subparagraph (C) and paragraph (5), the interest rate on a
loan (other than a guaranteed loan) to a public body or
nonprofit association (including an Indian tribe) for a water
or waste disposal facility or essential community facility
shall be determined by the Secretary at a rate not to
exceed--
[[Page S4064]]
``(i) the current market yield on outstanding municipal
obligations with remaining periods to maturity comparable to
the average maturity for the loan, and adjusted to the
nearest \1/8\ of 1 percent;
``(ii) 5 percent per year for a loan that is for the
upgrading of a facility or construction of a new facility as
required to meet applicable health or sanitary standards in--
``(I) an area in which the median family income of the
persons to be served by the facility is below the poverty
line (as defined in section 673 of the Community Services
Block Grant Act (42 U.S.C. 9902)); and
``(II) any areas the Secretary may designate in which a
significant percentage of the persons to be served by the
facilities are low income persons, as determined by the
Secretary; and
``(iii) 7 percent per year for a loan for a facility that
does not qualify for the 5 percent per year interest rate
prescribed in clause (ii) but that is located in an area in a
State in which the median household income of the persons to
be served by the facility does not exceed 100 percent of the
statewide nonmetropolitan median household income for the
State.
``(B) Health care and related facilities.--Notwithstanding
subparagraph (A), the Secretary shall establish a rate for a
loan for a health care or related facility that is--
``(i) based solely on the income of the area to be served;
and
``(ii) otherwise consistent with subparagraph (A).
``(C) Interest rates for water and waste disposal
facilities loans.--
``(i) In general.--Except as provided in clause (ii) and
notwithstanding subparagraph (A), in the case of a direct
loan for a water or waste disposal facility--
``(I) in the case of a loan that would be subject to the 5
percent interest rate limitation under subparagraph (A), the
Secretary shall establish the interest rate at a rate that is
equal to 60 percent of the current market yield for
outstanding municipal obligations with remaining periods to
maturity comparable to the average maturity of the loan,
adjusted to the nearest \1/8\ of 1 percent; and
``(II) in the case of a loan that would be subject to the 7
percent limitation under subparagraph (A), the Secretary
shall establish the interest rate at a rate that is equal to
80 percent of the current market yield for outstanding
municipal obligations with remaining periods to maturity
comparable to the average maturity of the loan, adjusted to
the nearest \1/8\ of 1 percent.
``(ii) Exception.--Clause (i) does not apply to a loan for
a specific project that is the subject of a loan that has
been approved, but not closed, as of the date of enactment of
the Agriculture Reform, Food, and Jobs Act of 2012.
``(3) Interest rates on business and other loans.--
``(A) In general.--Except as provided in paragraph (4), the
interest rates on loans under sections 3501(a)(1) (other than
guaranteed loans and loans as described in paragraph (2)(A))
shall be as determined by the Secretary in accordance with
subparagraph (B).
``(B) Minimum rate.--The interest rates described in
subparagraph (A) shall be not less than the sum obtained by
adding--
``(i) such rates as determined by the Secretary of the
Treasury taking into consideration the current average market
yield on outstanding marketable obligations of the United
States with remaining periods to maturity comparable to the
average maturities of such loans, adjusted in the judgment of
the Secretary of the Treasury to provide for rates comparable
to the rates prevailing in the private market for similar
loans and considering the insurance by the Secretary of the
loans; and
``(ii) an additional charge, prescribed by the Secretary,
to cover the losses of the Secretary and cost of
administration, which shall be deposited in the Rural
Development Insurance Fund, and further adjusted to the
nearest \1/8\ of 1 percent.
``(4) Interest rates adjustments.--
``(A) Adjustments.--Notwithstanding any other provision of
this subsection, in the case of loans (other than guaranteed
loans) made or guaranteed under the authorities of this title
specified in subparagraph (C) for activities that involve the
use of prime farmland, the interest rates shall be the
interest rates otherwise applicable under this section
increased by 2 percent per year.
``(B) Prime farmland.--
``(i) In general.--Wherever practicable, construction by a
State, municipality, or other political subdivision of local
government that is supported by loans described in
subparagraph (A) shall be placed on land that is not prime
farmland, in order to preserve the maximum practicable
quantity of prime farmlands for production of food and fiber.
``(ii) Increased rate.--In any case in which other options
exist for the siting of construction described in clause (i)
and the governmental authority still desires to carry out the
construction on prime farmland, the 2-percent interest rate
increase provided by this paragraph shall apply, but that
increased interest rate shall not apply where such other
options do not exist.
``(C) Applicable authorities.--The authorities referred to
in subparagraph (A) are--
``(i) the provisions of section 3502(a) relating to loans
for recreational developments and essential community
facilities;
``(ii) section 3601(e)(2)(A); and
``(iii) section 3601(c).
``(c) Payment of Charges.--A borrower of a loan made or
guaranteed under this subtitle shall pay such fees and other
charges as the Secretary may require, and prepay to the
Secretary such taxes and insurance as the Secretary may
require, on such terms and conditions as the Secretary may
prescribe.
``(d) Security.--
``(1) In general.--The Secretary shall take as security for
an obligation entered into in connection with a loan made
under this subtitle such security as the Secretary may
require.
``(2) Liens to united states.--An instrument for security
under paragraph (1) may constitute a lien running to the
United States notwithstanding the fact that the note for the
security may be held by a lender other than the United
States.
``(3) Multiple loans.--A borrower may use the same
collateral to secure 2 or more loans made or guaranteed under
this subtitle, except that the outstanding amount of the
loans may not exceed the total value of the collateral.
``(e) Legal Counsel for Small Loans.--In the case of a loan
of less than $500,000 made or guaranteed under section 3501
that is evidenced by a note or mortgage (as distinguished
from a bond issue), the borrower shall not be required to
appoint bond counsel to review the legal validity of the loan
if the Secretary has available legal counsel to perform the
review.
``SEC. 3702. STRATEGIC ECONOMIC AND COMMUNITY DEVELOPMENT.
``(a) Priority.--In the case of any rural development
program authorized by this subtitle, the Secretary may give
priority to applications that are otherwise eligible and
support strategic community and economic development plans on
a multijurisdictional basis, as approved by the Secretary.
``(b) Evaluation.--In evaluating strategic applications,
the Secretary shall give a higher priority to strategic
applications for a plan described in subsection (a) that
demonstrate--
``(1) the plan was developed through the collaboration of
multiple stakeholders in the service area of the plan,
including the participation of combinations of stakeholders
such as State, local, and tribal governments, nonprofit
institutions, institutions of higher education, and private
entities;
``(2) an understanding of the applicable regional resources
that could support the plan, including natural resources,
human resources, infrastructure, and financial resources;
``(3) investment from other Federal agencies;
``(4) investment from philanthropic organizations; and
``(5) clear objectives for the plan and the ability to
establish measurable performance measures and to track
progress toward meeting the objectives.
``SEC. 3703. GUARANTEED RURAL DEVELOPMENT LOANS.
``(a) In General.--The Secretary may provide financial
assistance to a borrower for a purpose provided in this
subtitle by guaranteeing a loan made by any Federal or State
chartered bank, savings and loan association, cooperative
lending agency, or other legally organized lending agency.
``(b) Interest Rate.--The interest rate payable by a
borrower on the portion of a guaranteed loan that is sold by
a lender to the secondary market under this subtitle may be
lower than the interest rate charged on the portion retained
by the lender.
``(c) Maximum Guarantee of 90 Percent.--Except as provided
in subsections (d) and (e), a loan guarantee under this
subtitle shall be for not more than 90 percent of the
principal and interest due on the loan.
``(d) Refinanced Loans Guaranteed at 95 Percent.--The
Secretary shall guarantee 95 percent of--
``(1) in the case of a loan that solely refinances a direct
loan made under this subtitle, the principal and interest due
on the loan on the date of the refinancing; or
``(2) 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
subtitle that is outstanding on the date on which the loan is
guaranteed.
``(e) Risk of Loss.--
``(1) In general.--Subject to subsection (b), the Secretary
may not make a loan under section 3501 or 3601 unless the
Secretary determines that no other lender is willing to make
the loan and assume 10 percent of the potential loss to be
sustained from the loan.
``(2) Exception for nonprofit groups.--Paragraph (1) shall
not apply to a public body or nonprofit association,
including an Indian tribe.
``SEC. 3704. RURAL DEVELOPMENT INSURANCE FUND.
``(a) Definition of Rural Development Loan.--In this
section, the term `rural development loan' means a loan
provided for by section 3501 or 3601.
``(b) Establishment.--There is established in the Treasury
of the United States a fund to be known as the `Rural
Development Insurance Fund' that shall be used by the
Secretary to discharge the obligations of the Secretary under
contracts making or guaranteeing rural development loans.
``SEC. 3705. RURAL ECONOMIC AREA PARTNERSHIP ZONES.
``(a) In General.--The Secretary may designate additional
areas as rural economic
[[Page S4065]]
area partnership zones to be assisted under this chapter--
``(1) through an open, competitive process; and
``(2) with priority given to rural areas--
``(A) with excessive unemployment or underemployment, a
high percentage of low-income residents, or high rates of
outmigration, as determined by the Secretary; and
``(B) that the Secretary determines have a substantial need
for assistance.
``(b) Requirements.--The Secretary shall carry out those
rural economic area partnership zones administratively in
effect on the date of enactment of the Agriculture Reform,
Food, and Jobs Act of 2012 in accordance with the terms and
conditions contained in the memoranda of agreement entered
into by the Secretary for the rural economic area partnership
zones.
``SEC. 3706. STREAMLINING APPLICATIONS AND IMPROVING
ACCESSIBILITY OF RURAL DEVELOPMENT PROGRAMS.
``The Secretary shall expedite the process of creating
user-friendly and accessible application forms and procedures
prioritizing programs and applications at the individual
level with an emphasis on utilizing current technology
including online applications and submission processes.
``CHAPTER 4--DELTA REGIONAL AUTHORITY
``SEC. 3801. DEFINITIONS.
``In this chapter:
``(1) Authority.--The term `Authority' means the Delta
Regional Authority established by section 3802.
``(2) Federal grant program.--The term `Federal grant
program' means a Federal grant program to provide assistance
in--
``(A) acquiring or developing land;
``(B) constructing or equipping a highway, road, bridge, or
facility; or
``(C) carrying out other economic development activities.
``(3) Region.--The term `region' means the Lower
Mississippi (as defined in section 4 of the Delta Development
Act (42 U.S.C. 3121 note; Public Law 100 460)).
``SEC. 3802. DELTA REGIONAL AUTHORITY.
``(a) Establishment.--
``(1) In general.--There is established the Delta Regional
Authority.
``(2) Composition.--The Authority shall be composed of--
``(A) a Federal member, to be appointed by the President,
with the advice and consent of the Senate; and
``(B) the Governor (or a designee of the Governor) of each
State in the region that elects to participate in the
Authority.
``(3) Cochairpersons.--The Authority shall be headed by--
``(A) the Federal member, who shall serve as--
``(i) the Federal cochairperson; and
``(ii) a liaison between the Federal Government and the
Authority; and
``(B) a State cochairperson, who shall be--
``(i) a Governor of a participating State in the region;
and
``(ii) elected by the State members for a term of not less
than 1 year.
``(4) Alabama.--Notwithstanding any other provision of law,
the State of Alabama shall be a full member of the Authority
and shall be entitled to all rights and privileges that the
membership affords to all other participating States in the
Authority.
``(b) Alternate Members.--
``(1) State alternates.--The State member of a
participating State may have a single alternate, who shall
be--
``(A) a resident of that State; and
``(B) appointed by the Governor of the State.
``(2) Alternate federal cochairperson.--The President shall
appoint an alternate Federal cochairperson.
``(3) Quorum.--A State alternate shall not be counted
toward the establishment of a quorum of the Authority in any
instance in which a quorum of the State members is required
to be present.
``(4) Delegation of power.--No power or responsibility of
the Authority specified in paragraphs (2) and (3) of
subsection (c), and no voting right of any Authority member,
shall be delegated to any person--
``(A) who is not an Authority member; or
``(B) who is not entitled to vote in Authority meetings.
``(c) Voting.--
``(1) In general.--A decision by the Authority shall
require a majority vote of the Authority (not including any
member representing a State that is delinquent under
subsection (g)(2)(C)) to be effective.
``(2) Quorum.--A quorum of State members shall be required
to be present for the Authority to make any policy decision,
including--
``(A) a modification or revision of an Authority policy
decision;
``(B) approval of a State or regional development plan; and
``(C) any allocation of funds among the States.
``(3) Project and grant proposals.--The approval of project
and grant proposals shall be--
``(A) a responsibility of the Authority; and
``(B) conducted in accordance with section 3809.
``(4) Voting by alternate members.--An alternate member
shall vote in the case of the absence, death, disability,
removal, or resignation of the Federal or State
representative for which the alternate member is an
alternate.
``(d) Duties.--The Authority shall--
``(1) develop, on a continuing basis, comprehensive and
coordinated plans and programs to establish priorities and
approve grants for the economic development of the region,
giving due consideration to other Federal, State, and local
planning and development activities in the region;
``(2) review, and where appropriate amend, priorities in a
development plan for the region (including 5-year regional
outcome targets);
``(3) assess the needs and assets of the region based on
available research, demonstrations, investigations,
assessments, and evaluations of the region prepared by
Federal, State, and local agencies, universities, local
development districts, and other nonprofit groups;
``(4) formulate and recommend to the Governors and
legislatures of States that participate in the Authority
forms of interstate cooperation;
``(5) work with State and local agencies in developing
appropriate model legislation;
``(6)(A) enhance the capacity of, and provide support for,
local development districts in the region; or
``(B) if no local development district exists in an area in
a participating State in the region, foster the creation of a
local development district;
``(7) encourage private investment in industrial,
commercial, and other economic development projects in the
region; and
``(8) cooperate with and assist State governments with
economic development programs of participating States.
``(e) Administration.--In carrying out subsection (d), the
Authority may--
``(1) hold such hearings, sit and act at such times and
places, take such testimony, receive such evidence, and print
or otherwise reproduce and distribute a description of the
proceedings and reports on actions by the Authority as the
Authority considers appropriate;
``(2) authorize, through the Federal or State cochairperson
or any other member of the Authority designated by the
Authority, the administration of oaths if the Authority
determines that testimony should be taken or evidence
received under oath;
``(3) request from any Federal, State, or local department
or agency such information as may be available to or
procurable by the department or agency that may be of use to
the Authority in carrying out duties of the Authority;
``(4) adopt, amend, and repeal bylaws, rules, and
regulations governing the conduct of Authority business and
the performance of Authority duties;
``(5) request the head of any Federal department or agency
to detail to the Authority such personnel as the Authority
requires to carry out duties of the Authority, each such
detail to be without loss of seniority, pay, or other
employee status;
``(6) request the head of any State department or agency or
local government to detail to the Authority such personnel as
the Authority requires to carry out duties of the Authority,
each such detail to be without loss of seniority, pay, or
other employee status;
``(7) provide for coverage of Authority employees in a
suitable retirement and employee benefit system by--
``(A) making arrangements or entering into contracts with
any participating State government; or
``(B) otherwise providing retirement and other employee
benefit coverage;
``(8) accept, use, and dispose of gifts or donations of
services or real, personal, tangible, or intangible property;
``(9) enter into and perform such contracts, leases,
cooperative agreements, or other transactions as are
necessary to carry out Authority duties, including any
contracts, leases, or cooperative agreements with--
``(A) any department, agency, or instrumentality of the
United States;
``(B) any State (including a political subdivision, agency,
or instrumentality of the State); or
``(C) any person, firm, association, or corporation; and
``(10) establish and maintain a central office and field
offices at such locations as the Authority may select.
``(f) Federal Agency Cooperation.--A Federal agency shall--
``(1) cooperate with the Authority; and
``(2) provide, on request of the Federal cochairperson,
appropriate assistance in carrying out this chapter, in
accordance with applicable Federal laws (including
regulations).
``(g) Administrative Expenses.--
``(1) In general.--Administrative expenses of the Authority
(except for the expenses of the Federal cochairperson,
including expenses of the alternate and staff of the Federal
cochairperson, which shall be paid solely by the Federal
Government) shall be paid--
``(A) by the Federal Government, in an amount equal to 50
percent of the administrative expenses; and
``(B) by the States in the region participating in the
Authority, in an amount equal to 50 percent of the
administrative expenses.
``(2) State share.--
``(A) In general.--The share of administrative expenses of
the Authority to be paid by each State shall be determined by
the Authority.
``(B) No federal participation.--The Federal cochairperson
shall not participate or vote in any decision under
subparagraph (A).
[[Page S4066]]
``(C) Delinquent states.--If a State is delinquent in
payment of the State's share of administrative expenses of
the Authority under this subsection--
``(i) no assistance under this chapter shall be furnished
to the State (including assistance to a political subdivision
or a resident of the State); and
``(ii) no member of the Authority from the State shall
participate or vote in any action by the Authority.
``(h) Compensation.--
``(1) Federal cochairperson.--The Federal cochairperson
shall be compensated by the Federal Government at level III
of the Executive Schedule in subchapter II of chapter 53 of
title 5, United States Code.
``(2) Alternate federal cochairperson.--The alternate
Federal cochairperson--
``(A) shall be compensated by the Federal Government at
level V of the Executive Schedule described in paragraph (1);
and
``(B) when not actively serving as an alternate for the
Federal cochairperson, shall perform such functions and
duties as are delegated by the Federal cochairperson.
``(3) State members and alternates.--
``(A) In general.--A State shall compensate each member and
alternate representing the State on the Authority at the rate
established by law of the State.
``(B) No additional compensation.--No State member or
alternate member shall receive any salary, or any
contribution to or supplementation of salary from any source
other than the State for services provided by the member or
alternate to the Authority.
``(4) Detailed employees.--
``(A) In general.--No person detailed to serve the
Authority under subsection (e)(6) shall receive any salary or
any contribution to or supplementation of salary for services
provided to the Authority from--
``(i) any source other than the State, local, or
intergovernmental department or agency from which the person
was detailed; or
``(ii) the Authority.
``(B) Violation.--Any person that violates this paragraph
shall be fined not more than $5,000, imprisoned not more than
1 year, or both.
``(C) Applicable law.--The Federal cochairperson, the
alternate Federal cochairperson, and any Federal officer or
employee detailed to duty on the Authority under subsection
(e)(5) shall not be subject to subparagraph (A), but shall
remain subject to sections 202 through 209 of title 18,
United States Code.
``(5) Additional personnel.--
``(A) Compensation.--
``(i) In general.--The Authority may appoint and fix the
compensation of an executive director and such other
personnel as are necessary to enable the Authority to carry
out the duties of the Authority.
``(ii) Exception.--Compensation under clause (i) shall not
exceed the maximum rate for the Senior Executive Service
under section 5382 of title 5, United States Code, including
any applicable locality-based comparability payment that may
be authorized under section 5304(h)(2)(C) of that title.
``(B) Executive director.--The executive director shall be
responsible for--
``(i) the carrying out of the administrative duties of the
Authority;
``(ii) direction of the Authority staff; and
``(iii) such other duties as the Authority may assign.
``(C) No federal employee status.--No member, alternate,
officer, or employee of the Authority (except the Federal
cochairperson of the Authority, the alternate and staff for
the Federal cochairperson, and any Federal employee detailed
to the Authority under subsection (e)(5)) shall be considered
to be a Federal employee for any purpose.
``(i) Conflicts of Interest.--
``(1) In general.--Except as provided under paragraph (2),
no State member, alternate, officer, or employee of the
Authority shall participate personally and substantially as a
member, alternate, officer, or employee of the Authority,
through decision, approval, disapproval, recommendation, the
rendering of advice, investigation, or otherwise, in any
proceeding, application, request for a ruling or other
determination, contract, claim, controversy, or other matter
in which, to knowledge of the member, alternate, officer, or
employee, there is a financial interest of--
``(A) the member, alternate, officer, or employee;
``(B) the spouse, minor child, partner, or organization
(other than a State or political subdivision of the State) of
the member, alternate, officer, or employee, in which the
member, alternate, officer, or employee is serving as
officer, director, trustee, partner, or employee; or
``(C) any person or organization with whom the member,
alternate, officer, or employee is negotiating or has any
arrangement concerning prospective employment.
``(2) Disclosure.--Paragraph (1) shall not apply if the
State member, alternate, officer, or employee--
``(A) immediately advises the Authority of the nature and
circumstances of the proceeding, application, request for a
ruling or other determination, contract, claim, controversy,
or other particular matter presenting a potential conflict of
interest;
``(B) makes full disclosure of the financial interest; and
``(C) before the proceeding concerning the matter
presenting the conflict of interest, receives a written
determination by the Authority that the interest is not so
substantial as to be likely to affect the integrity of the
services that the Authority may expect from the State member,
alternate, officer, or employee.
``(3) Violation.--Any person that violates this subsection
shall be fined not more than $10,000, imprisoned not more
than 2 years, or both.
``(j) Validity of Contracts, Loans, and Grants.--The
Authority may declare void any contract, loan, or grant of or
by the Authority in relation to which the Authority
determines that there has been a violation of any provision
under subsection (h)(4), subsection (i), or sections 202
through 209 of title 18, United States Code.
``SEC. 3803. ECONOMIC AND COMMUNITY DEVELOPMENT GRANTS.
``(a) In General.--The Authority may approve grants to
States and public and nonprofit entities for projects,
approved in accordance with section 3809--
``(1) to develop the transportation infrastructure of the
region for the purpose of facilitating economic development
in the region (except that grants for this purpose may only
be made to a State or local government);
``(2) to assist the region in obtaining the job training,
employment-related education, and business development (with
an emphasis on entrepreneurship) that are needed to build and
maintain strong local economies;
``(3) to provide assistance to severely distressed and
underdeveloped areas that lack financial resources for
improving basic public services;
``(4) to provide assistance to severely distressed and
underdeveloped areas that lack financial resources for
equipping industrial parks and related facilities; and
``(5) to otherwise achieve the purposes of this chapter.
``(b) Funding.--
``(1) In general.--Funds for grants under subsection (a)
may be provided--
``(A) entirely from appropriations to carry out this
section;
``(B) in combination with funds available under another
Federal or Federal grant program; or
``(C) from any other source.
``(2) Priority of funding.--To best build the foundations
for long-term economic development and to complement other
Federal and State resources in the region, Federal funds
available under this chapter shall be focused on the
activities in the following order or priority:
``(A) Basic public infrastructure in distressed counties
and isolated areas of distress.
``(B) Transportation infrastructure for the purpose of
facilitating economic development in the region.
``(C) Business development, with emphasis on
entrepreneurship.
``(D) Job training or employment-related education, with
emphasis on use of existing public educational institutions
located in the region.
``SEC. 3804. SUPPLEMENTS TO FEDERAL GRANT PROGRAMS.
``(a) Finding.--Congress finds that certain States and
local communities of the region, including local development
districts, may be unable to take maximum advantage of Federal
grant programs for which the States and communities are
eligible because--
``(1) the States or communities lack the economic resources
to provide the required matching share; or
``(2) there are insufficient funds available under the
applicable Federal law authorizing the Federal grant program
to meet pressing needs of the region.
``(b) Federal Grant Program Funding.--Notwithstanding any
provision of law limiting the Federal share, the areas
eligible for assistance, or the authorizations of
appropriations of any Federal grant program, and in
accordance with subsection (c), the Authority, with the
approval of the Federal cochairperson and with respect to a
project to be carried out in the region--
``(1) may increase the Federal share of the costs of a
project under the Federal grant program to not more than 90
percent (except as provided in section 3806(b)); and
``(2) shall use amounts made available to carry out this
chapter to pay the increased Federal share.
``(c) Certifications.--
``(1) In general.--In the case of any project for which all
or any portion of the basic Federal share of the costs of the
project is proposed to be paid under this section, no Federal
contribution shall be made until the Federal official
administering the Federal law that authorizes the Federal
grant program certifies that the project--
``(A) meets (except as provided in subsection (b)) the
applicable requirements of the applicable Federal grant
program; and
``(B) could be approved for Federal contribution under the
Federal grant program if funds were available under the law
for the project.
``(2) Certification by authority.--
``(A) In general.--The certifications and determinations
required to be made by the Authority for approval of projects
under this Act in accordance with section 3809 shall be--
``(i) controlling; and
``(ii) accepted by the Federal agencies.
``(B) Acceptance by federal cochairperson.--In the case of
any project described in paragraph (1), any finding, report,
certification, or documentation required to be submitted with
respect to the project to the
[[Page S4067]]
head of the department, agency, or instrumentality of the
Federal Government responsible for the administration of the
Federal grant program under which the project is carried out
shall be accepted by the Federal cochairperson.
``SEC. 3805. LOCAL DEVELOPMENT DISTRICTS; CERTIFICATION AND
ADMINISTRATIVE EXPENSES.
``(a) Definition of Local Development District.--In this
section, the term `local development district' means an
entity that--
``(1) is--
``(A) a planning district in existence on the date of
enactment of the Agriculture Reform, Food, and Jobs Act of
2012 that is recognized by the Secretary; or
``(B) if an entity described in subparagraph (A) does not
exist--
``(i) organized and operated in a manner that ensures
broad-based community participation and an effective
opportunity for other nonprofit groups to contribute to the
development and implementation of programs in the region;
``(ii) governed by a policy board with at least a simple
majority of members consisting of elected officials or
employees of a general purpose unit of local government who
have been appointed to represent the government;
``(iii) certified to the Authority as having a charter or
authority that includes the economic development of counties
or parts of counties or other political subdivisions within
the region--
``(I) by the Governor of each State in which the entity is
located; or
``(II) by the State officer designated by the appropriate
State law to make the certification; and
``(iv)(I) a nonprofit incorporated body organized or
chartered under the law of the State in which the entity is
located;
``(II) a nonprofit agency or instrumentality of a State or
local government;
``(III) a public organization established before December
21, 2000, under State law for creation of multi-
jurisdictional, area-wide planning organizations; or
``(IV) a nonprofit association or combination of bodies,
agencies, and instrumentalities described in subclauses (I)
through (III); and
``(2) has not, as certified by the Federal cochairperson--
``(A) inappropriately used Federal grant funds from any
Federal source; or
``(B) appointed an officer who, during the period in which
another entity inappropriately used Federal grant funds from
any Federal source, was an officer of the other entity.
``(b) Grants to Local Development Districts.--
``(1) In general.--The Authority shall make grants for
administrative expenses under this section.
``(2) Conditions for grants.--
``(A) Maximum amount.--The amount of any grant awarded
under paragraph (1) shall not exceed 80 percent of the
administrative expenses of the local development district
receiving the grant.
``(B) Maximum period.--No grant described in paragraph (1)
shall be awarded to a State agency certified as a local
development district for a period greater than 3 years.
``(C) Local share.--The contributions of a local
development district for administrative expenses may be in
cash or in kind, fairly evaluated, including space,
equipment, and services.
``(c) Duties of Local Development Districts.--A local
development district shall--
``(1) operate as a lead organization serving multicounty
areas in the region at the local level; and
``(2) serve as a liaison between State and local
governments, nonprofit organizations (including community-
based groups and educational institutions), the business
community, and citizens that--
``(A) are involved in multijurisdictional planning;
``(B) provide technical assistance to local jurisdictions
and potential grantees; and
``(C) provide leadership and civic development assistance.
``SEC. 3806. DISTRESSED COUNTIES AND AREAS AND NONDISTRESSED
COUNTIES.
``(a) Designations.--Each year, the Authority, in
accordance with such criteria as the Authority may establish,
shall designate--
``(1) as distressed counties, counties in the region that
are the most severely and persistently distressed and
underdeveloped and have high rates of poverty or
unemployment;
``(2) as nondistressed counties, counties in the region
that are not designated as distressed counties under
paragraph (1); and
``(3) as isolated areas of distress, areas located in
nondistressed counties (as designated under paragraph (2))
that have high rates of poverty or unemployment.
``(b) Distressed Counties.--
``(1) In general.--The Authority shall allocate at least 75
percent of the appropriations made available under section
3813 for programs and projects designed to serve the needs of
distressed counties and isolated areas of distress in the
region.
``(2) Funding limitations.--The funding limitations under
section 3804(b) shall not apply to a project providing
transportation or basic public services to residents of 1 or
more distressed counties or isolated areas of distress in the
region.
``(c) Nondistressed Counties.--
``(1) In general.--Except as provided in this subsection,
no funds shall be provided under this chapter for a project
located in a county designated as a nondistressed county
under subsection (a)(2).
``(2) Exceptions.--
``(A) In general.--The funding prohibition under paragraph
(1) shall not apply to grants to fund the administrative
expenses of local development districts under section
3805(b).
``(B) Multicounty projects.--The Authority may waive the
application of the funding prohibition under paragraph (1) to
a multicounty project that includes participation by a
nondistressed county; or any other type of project if the
Authority determines that the project could bring significant
benefits to areas of the region outside a nondistressed
county.
``(C) Isolated areas of distress.--For a designation of an
isolated area of distress for assistance to be effective, the
designation shall be supported--
``(i) by the most recent Federal data available; or
``(ii) if no recent Federal data are available, by the most
recent data available through the government of the State in
which the isolated area of distress is located.
``(d) Transportation and Basic Public Infrastructure.--The
Authority shall allocate at least 50 percent of any funds
made available under section 3813 for transportation and
basic public infrastructure projects authorized under
paragraphs (1) and (3) of section 3803(a).
``SEC. 3807. DEVELOPMENT PLANNING PROCESS.
``(a) State Development Plan.--In accordance with policies
established by the Authority, each State member shall submit
a development plan for the area of the region represented by
the State member.
``(b) Content of Plan.--A State development plan submitted
under subsection (a) shall reflect the goals, objectives, and
priorities identified in the regional development plan
developed under section 3802(d)(2).
``(c) Consultation With Interested Local Parties.--In
carrying out the development planning process (including the
selection of programs and projects for assistance), a State
may--
``(1) consult with--
``(A) local development districts; and
``(B) local units of government; and
``(2) take into consideration the goals, objectives,
priorities, and recommendations of the entities described in
paragraph (1).
``(d) Public Participation.--
``(1) In general.--The Authority and applicable State and
local development districts shall encourage and assist, to
the maximum extent practicable, public participation in the
development, revision, and implementation of all plans and
programs under this chapter.
``(2) Regulations.--The Authority shall develop guidelines
for providing public participation described in paragraph
(1), including public hearings.
``SEC. 3808. PROGRAM DEVELOPMENT CRITERIA.
``(a) In General.--In considering programs and projects to
be provided assistance under this chapter and in establishing
a priority ranking of the requests for assistance provided by
the Authority, the Authority shall follow procedures that
ensure, to the maximum extent practicable, consideration of--
``(1) the relationship of the project or class of projects
to overall regional development;
``(2) the per capita income and poverty and unemployment
rates in an area;
``(3) the financial resources available to the applicants
for assistance seeking to carry out the project, with
emphasis on ensuring that projects are adequately financed to
maximize the probability of successful economic development;
``(4) the importance of the project or class of projects in
relation to other projects or classes of projects that may be
in competition for the same funds;
``(5) the prospects that the project for which assistance
is sought will improve, on a continuing rather than a
temporary basis, the opportunities for employment, the
average level of income, or the economic development of the
area served by the project; and
``(6) the extent to which the project design provides for
detailed outcome measurements by which grant expenditures and
the results of the expenditures may be evaluated.
``(b) No Relocation Assistance.--
``(1) In general.--Except as provided in paragraph (2), no
financial assistance authorized by this chapter shall be used
to assist a person or entity in relocating from 1 area to
another.
``(2) Outside businesses.--Financial assistance under this
chapter may be used as otherwise authorized by this title to
attract businesses from outside the region to the region.
``(c) Reduction of Funds.--Funds may be provided for a
program or project in a State under this chapter only if the
Authority determines that the level of Federal or State
financial assistance provided under a law other than this
chapter, for the same type of program or project in the same
area of the State within the region, will not be reduced as a
result of funds made available by this chapter.
``SEC. 3809. APPROVAL OF DEVELOPMENT PLANS AND PROJECTS.
``(a) In General.--A State or regional development plan or
any multistate subregional plan that is proposed for
development under this chapter shall be reviewed and approved
by the Authority.
``(b) Evaluation by State Member.--An application for a
grant or any other assistance for a project under this
chapter shall be
[[Page S4068]]
made through and evaluated for approval by the State member
of the Authority representing the applicant.
``(c) Certification.--An application for a grant or other
assistance for a project shall be approved only on
certification by the State member that the application for
the project--
``(1) describes ways in which the project complies with any
applicable State development plan;
``(2) meets applicable criteria under section 3808;
``(3) provides adequate assurance that the proposed project
will be properly administered, operated, and maintained; and
``(4) otherwise meets the requirements of this chapter.
``(d) Approval of Grant Applications.--On certification by
a State member of the Authority of an application for a grant
or other assistance for a specific project under this
section, an affirmative vote of the Authority under section
3802(c) shall be required for approval of the application.
``SEC. 3810. CONSENT OF STATES.
``Nothing in this chapter requires any State to engage in
or accept any program under this chapter without the consent
of the State.
``SEC. 3811. RECORDS.
``(a) Records of the Authority.--
``(1) In general.--The Authority shall maintain accurate
and complete records of all transactions and activities of
the Authority.
``(2) Availability.--All records of the Authority shall be
available for audit and examination by the Comptroller
General of the United States and the Inspector General of the
Department of Agriculture (including authorized
representatives of the Comptroller General and the Inspector
General of the Department of Agriculture).
``(b) Records of Recipients of Federal Assistance.--
``(1) In general.--A recipient of Federal funds under this
chapter shall, as required by the Authority, maintain
accurate and complete records of transactions and activities
financed with Federal funds and report on the transactions
and activities to the Authority.
``(2) Availability.--All records required under paragraph
(1) shall be available for audit by the Comptroller General
of the United States, the Inspector General of the Department
of Agriculture, and the Authority (including authorized
representatives of the Comptroller General, the Inspector
General of the Department of Agriculture, and the Authority).
``SEC. 3812. ANNUAL REPORT.
``Not later than 180 days after the end of each fiscal
year, the Authority shall submit to the President and to
Congress a report describing the activities carried out under
this chapter.
``SEC. 3813. AUTHORIZATION OF APPROPRIATIONS.
``(a) In General.--There is authorized to be appropriated
to the Authority to carry out this chapter $30,000,000 for
each of fiscal years 2012 through 2017, to remain available
until expended.
``(b) Administrative Expenses.--Not more than 5 percent of
the amount appropriated under subsection (a) for a fiscal
year shall be used for administrative expenses of the
Authority.
``SEC. 3814. TERMINATION OF AUTHORITY.
``This chapter and the authority provided under this
chapter expire on October 1, 2017.
``CHAPTER 5--NORTHERN GREAT PLAINS REGIONAL AUTHORITY
``SEC. 3821. DEFINITIONS.
``In this chapter:
``(1) Authority.--The term `Authority' means the Northern
Great Plains Regional Authority established by section 3822.
``(2) Federal grant program.--The term `Federal grant
program' means a Federal grant program to provide assistance
in--
``(A) implementing the recommendations of the Northern
Great Plains Rural Development Commission established by the
Northern Great Plains Rural Development Act (7 U.S.C. 2661
note; Public Law 103 318);
``(B) acquiring or developing land;
``(C) constructing or equipping a highway, road, bridge, or
facility;
``(D) carrying out other economic development activities;
or
``(E) conducting research activities related to the
activities described in subparagraphs (A) through (D).
``(3) Region.--The term `region' means the States of Iowa,
Minnesota, Missouri (other than counties included in the
Delta Regional Authority), Nebraska, North Dakota, and South
Dakota.
``SEC. 3822. NORTHERN GREAT PLAINS REGIONAL AUTHORITY.
``(a) Establishment.--
``(1) In general.--There is established the Northern Great
Plains Regional Authority.
``(2) Composition.--The Authority shall be composed of--
``(A) a Federal member, to be appointed by the President,
by and with the advice and consent of the Senate;
``(B) the Governor (or a designee of the Governor) of each
State in the region that elects to participate in the
Authority; and
``(C) a member of an Indian tribe, who shall be a
chairperson of an Indian tribe in the region or a designee of
such a chairperson, to be appointed by the President, by and
with the advice and consent of the Senate.
``(3) Cochairpersons.--The Authority shall be headed by--
``(A) the Federal member, who shall serve as--
``(i) the Federal cochairperson; and
``(ii) a liaison between the Federal Government and the
Authority;
``(B) a State cochairperson, who shall be--
``(i) a Governor of a participating State in the region;
and
``(ii) elected by the State members for a term of not less
than 1 year; and
``(C) the member of an Indian tribe, who shall serve as--
``(i) the tribal cochairperson; and
``(ii) a liaison between the governments of Indian tribes
in the region and the Authority.
``(4) Failure to confirm.--
``(A) Federal member.--Notwithstanding any other provision
of this section, if a Federal member described in paragraph
(2)(A) has not been confirmed by the Senate by not later than
180 days after the date of enactment of the Agriculture
Reform, Food, and Jobs Act of 2012, the Authority may
organize and operate without the Federal member.
``(B) Tribal cochairperson.--In the case of the tribal
cochairperson, if no tribal cochairperson is confirmed by the
Senate, the regional authority shall consult and coordinate
with the leaders of Indian tribes in the region concerning
the activities of the Authority, as appropriate.
``(b) Alternate Members.--
``(1) Alternate federal cochairperson.--The President shall
appoint an alternate Federal cochairperson.
``(2) State alternates.--
``(A) In general.--The State member of a participating
State may have a single alternate, who shall be--
``(i) a resident of that State; and
``(ii) appointed by the Governor of the State.
``(B) Quorum.--A State alternate member shall not be
counted toward the establishment of a quorum of the members
of the Authority in any case in which a quorum of the State
members is required to be present.
``(3) Alternate tribal cochairperson.--The President shall
appoint an alternate tribal cochairperson, by and with the
advice and consent of the Senate.
``(4) Delegation of power.--No power or responsibility of
the Authority specified in paragraphs (2) and (3) of
subsection (c), and no voting right of any member of the
Authority, shall be delegated to any person who is not--
``(A) a member of the Authority; or
``(B) entitled to vote in Authority meetings.
``(c) Voting.--
``(1) In general.--A decision by the Authority shall
require a majority vote of the Authority (not including any
member representing a State that is delinquent under
subsection (g)(2)(D)) to be effective.
``(2) Quorum.--A quorum of State members shall be required
to be present for the Authority to make any policy decision,
including--
``(A) a modification or revision of an Authority policy
decision;
``(B) approval of a State or regional development plan; and
``(C) any allocation of funds among the States.
``(3) Project and grant proposals.--The approval of project
and grant proposals shall be--
``(A) a responsibility of the Authority; and
``(B) conducted in accordance with section 3830.
``(4) Voting by alternate members.--An alternate member
shall vote in the case of the absence, death, disability,
removal, or resignation of the Federal, State, or Indian
tribe member for whom the alternate member is an alternate.
``(d) Duties.--The Authority shall--
``(1) develop, on a continuing basis, comprehensive and
coordinated plans and programs for multistate cooperation to
advance the economic and social well-being of the region and
to approve grants for the economic development of the region,
giving due consideration to other Federal, State, tribal, and
local planning and development activities in the region;
``(2) review, and when appropriate amend, priorities in a
development plan for the region (including 5-year regional
outcome targets);
``(3) assess the needs and assets of the region based on
available research, demonstrations, investigations,
assessments, and evaluations of the region prepared by
Federal, State, tribal, and local agencies, universities,
regional and local development districts or organizations,
and other nonprofit groups;
``(4) formulate and recommend to the Governors and
legislatures of States that participate in the Authority
forms of interstate cooperation for--
``(A) renewable energy development and transmission;
``(B) transportation planning and economic development;
``(C) information technology;
``(D) movement of freight and individuals within the
region;
``(E) federally-funded research at institutions of higher
education; and
``(F) conservation land management;
``(5) work with State, tribal, and local agencies in
developing appropriate model legislation;
[[Page S4069]]
``(6) enhance the capacity of, and provide support for,
multistate development and research organizations, local
development organizations and districts, and resource
conservation districts in the region;
``(7) encourage private investment in industrial,
commercial, renewable energy, and other economic development
projects in the region; and
``(8) cooperate with and assist State governments with
economic development programs of participating States.
``(e) Administration.--In carrying out subsection (d), the
Authority may--
``(1) hold such hearings, sit and act at such times and
places, take such testimony, receive such evidence, and print
or otherwise reproduce and distribute a description of the
proceedings and reports on actions by the Authority as the
Authority considers appropriate;
``(2) authorize, through the Federal, State, or tribal
cochairperson or any other member of the Authority designated
by the Authority, the administration of oaths if the
Authority determines that testimony should be taken or
evidence received under oath;
``(3) request from any Federal, State, tribal, or local
agency such information as may be available to or procurable
by the agency that may be of use to the Authority in carrying
out the duties of the Authority;
``(4) adopt, amend, and repeal bylaws and rules governing
the conduct of business and the performance of duties of the
Authority;
``(5) request the head of any Federal agency to detail to
the Authority such personnel as the Authority requires to
carry out duties of the Authority, each such detail to be
without loss of seniority, pay, or other employee status;
``(6) request the head of any State agency, tribal
government, or local government to detail to the Authority
such personnel as the Authority requires to carry out duties
of the Authority, each such detail to be without loss of
seniority, pay, or other employee status;
``(7) provide for coverage of Authority employees in a
suitable retirement and employee benefit system by--
``(A) making arrangements or entering into contracts with
any participating State government or tribal government; or
``(B) otherwise providing retirement and other employee
benefit coverage;
``(8) accept, use, and dispose of gifts or donations of
services or real, personal, tangible, or intangible property;
``(9) enter into and perform such contracts, leases,
cooperative agreements, or other transactions as are
necessary to carry out Authority duties, including any
contracts, leases, or cooperative agreements with--
``(A) any department, agency, or instrumentality of the
United States;
``(B) any State (including a political subdivision, agency,
or instrumentality of the State);
``(C) any Indian tribe in the region; or
``(D) any person, firm, association, or corporation; and
``(10) establish and maintain a central office and field
offices at such locations as the Authority may select.
``(f) Federal Agency Cooperation.--A Federal agency shall--
``(1) cooperate with the Authority; and
``(2) provide, on request of a cochairperson, appropriate
assistance in carrying out this chapter, in accordance with
applicable Federal laws (including regulations).
``(g) Administrative Expenses.--
``(1) Federal share.--The Federal share of the
administrative expenses of the Authority shall be--
``(A) for each of fiscal years 2012 and 2013, 100 percent;
``(B) for fiscal year 2014, 75 percent; and
``(C) for fiscal year 2015 and each fiscal year thereafter,
50 percent.
``(2) Non-federal share.--
``(A) In general.--The non-Federal share of the
administrative expenses of the Authority shall be paid by
non-Federal sources in the States that participate in the
Authority.
``(B) Share paid by each state.--The share of
administrative expenses of the Authority to be paid by non-
Federal sources in each State shall be determined by the
Authority.
``(C) No federal participation.--The Federal cochairperson
shall not participate or vote in any decision under
subparagraph (B).
``(D) Delinquent states.--If a State is delinquent in
payment of the State's share of administrative expenses of
the Authority under this subsection--
``(i) no assistance under this chapter shall be provided to
the State (including assistance to a political subdivision or
a resident of the State); and
``(ii) no member of the Authority from the State shall
participate or vote in any action by the Authority.
``(h) Compensation.--
``(1) Federal and tribal cochairpersons.--The Federal
cochairperson and the tribal cochairperson shall be
compensated by the Federal Government at the annual rate of
basic pay prescribed for level III of the Executive Schedule
in subchapter II of chapter 53 of title 5, United States
Code.
``(2) Alternate federal and tribal cochairpersons.--The
alternate Federal cochairperson and the alternate tribal
cochairperson--
``(A) shall be compensated by the Federal Government at the
annual rate of basic pay prescribed for level V of the
Executive Schedule described in paragraph (1); and
``(B) when not actively serving as an alternate, shall
perform such functions and duties as are delegated by the
Federal cochairperson or the tribal cochairperson,
respectively.
``(3) State members and alternates.--
``(A) In general.--A State shall compensate each member and
alternate representing the State on the Authority at the rate
established by State law.
``(B) No additional compensation.--No State member or
alternate member shall receive any salary, or any
contribution to or supplementation of salary from any source
other than the State for services provided by the member or
alternate member to the Authority.
``(4) Detailed employees.--
``(A) In general.--No person detailed to serve the
Authority under subsection (e)(6) shall receive any salary or
any contribution to or supplementation of salary for services
provided to the Authority from--
``(i) any source other than the State, tribal, local, or
intergovernmental agency from which the person was detailed;
or
``(ii) the Authority.
``(B) Violation.--Any person that violates this paragraph
shall be fined not more than $5,000, imprisoned not more than
1 year, or both.
``(C) Applicable law.--The Federal cochairperson, the
alternate Federal cochairperson, and any Federal officer or
employee detailed to duty on the Authority under subsection
(e)(5) shall not be subject to subparagraph (A), but shall
remain subject to sections 202 through 209 of title 18,
United States Code.
``(5) Additional personnel.--
``(A) Compensation.--
``(i) In general.--The Authority may appoint and fix the
compensation of an executive director and such other
personnel as are necessary to enable the Authority to carry
out the duties of the Authority.
``(ii) Exception.--Compensation under clause (i) shall not
exceed the maximum rate for the Senior Executive Service
under section 5382 of title 5, United States Code, including
any applicable locality-based comparability payment that may
be authorized under section 5304(h)(2)(C) of that title.
``(B) Executive director.--The executive director shall be
responsible for--
``(i) the carrying out of the administrative duties of the
Authority;
``(ii) direction of the Authority staff; and
``(iii) such other duties as the Authority may assign.
``(C) No federal employee status.--No member, alternate,
officer, or employee of the Authority (except the Federal
cochairperson of the Authority, the alternate and staff for
the Federal cochairperson, and any Federal employee detailed
to the Authority under subsection (e)(5)) shall be considered
to be a Federal employee for any purpose.
``(i) Conflicts of Interest.--
``(1) In general.--Except as provided under paragraph (2),
no State member, Indian tribe member, State alternate,
officer, or employee of the Authority shall participate
personally and substantially as a member, alternate, officer,
or employee of the Authority, through decision, approval,
disapproval, recommendation, the rendering of advice,
investigation, or otherwise, in any proceeding, application,
request for a ruling or other determination, contract, claim,
controversy, or other matter in which, to knowledge of the
member, alternate, officer, or employee, there is a financial
interest of--
``(A) the member, alternate, officer, or employee;
``(B) the spouse, minor child, partner, or organization
(other than a State or political subdivision of the State or
the Indian tribe) of the member, alternate, officer, or
employee, in which the member, alternate, officer, or
employee is serving as officer, director, trustee, partner,
or employee; or
``(C) any person or organization with whom the member,
alternate, officer, or employee is negotiating or has any
arrangement concerning prospective employment.
``(2) Disclosure.--Paragraph (1) shall not apply if the
State member, Indian tribe member, alternate, officer, or
employee--
``(A) immediately advises the Authority of the nature and
circumstances of the proceeding, application, request for a
ruling or other determination, contract, claim, controversy,
or other particular matter presenting a potential conflict of
interest;
``(B) makes full disclosure of the financial interest; and
``(C) before the proceeding concerning the matter
presenting the conflict of interest, receives a written
determination by the Authority that the interest is not so
substantial as to be likely to affect the integrity of the
services that the Authority may expect from the State member,
Indian tribe member, alternate, officer, or employee.
``(3) Violation.--Any person that violates this subsection
shall be fined not more than $10,000, imprisoned not more
than 2 years, or both.
``(j) Validity of Contracts, Loans, and Grants.--The
Authority may declare void any contract, loan, or grant of or
by the Authority in relation to which the Authority
determines that there has been a violation of any provision
under subsection (h)(4) or subsection (i) of this chapter, or
sections 202 through 209 of title 18, United States Code.
[[Page S4070]]
``SEC. 3823. INTERSTATE COOPERATION FOR ECONOMIC OPPORTUNITY
AND EFFICIENCY.
``(a) In General.--The Authority shall provide assistance
to States in developing regional plans to address multistate
economic issues, including plans--
``(1) to develop a regional transmission system for
movement of renewable energy to markets outside the region;
``(2) to address regional transportation concerns,
including the establishment of a Northern Great Plains
Regional Transportation Working Group;
``(3) to encourage and support interstate collaboration on
federally-funded research that is in the national interest;
and
``(4) to establish a Regional Working Group on Agriculture
Development and Transportation.
``(b) Economic Issues.--The multistate economic issues
referred to in subsection (a) shall include--
``(1) renewable energy development and transmission;
``(2) transportation planning and economic development;
``(3) information technology;
``(4) movement of freight and individuals within the
region;
``(5) federally-funded research at institutions of higher
education; and
``(6) conservation land management.
``SEC. 3824. ECONOMIC AND COMMUNITY DEVELOPMENT GRANTS.
``(a) In General.--The Authority may approve grants to
States, Indian tribes, local governments, and public and
nonprofit organizations for projects, approved in accordance
with section 3830--
``(1) to assist the region in obtaining the job training,
employment-related education, and business development (with
an emphasis on entrepreneurship) that are needed to build and
maintain strong local economies;
``(2) to develop the transportation, renewable energy
transmission, and telecommunication infrastructure of the
region for the purpose of facilitating economic development
in the region (except that grants for this purpose may be
made only to States, Indian tribes, local governments, and
nonprofit organizations);
``(3) to provide assistance to severely distressed and
underdeveloped areas that lack financial resources for
improving basic public services;
``(4) to provide assistance to severely distressed and
underdeveloped areas that lack financial resources for
equipping industrial parks and related facilities; and
``(5) to otherwise achieve the purposes of this chapter.
``(b) Funding.--
``(1) In general.--Funds for grants under subsection (a)
may be provided--
``(A) entirely from appropriations to carry out this
section;
``(B) in combination with funds available under another
Federal grant program; or
``(C) from any other source.
``(2) Priority of funding.--To best build the foundations
for long-term economic development and to complement other
Federal, State, and tribal resources in the region, Federal
funds available under this chapter shall be focused on the
following activities:
``(A) Basic public infrastructure in distressed counties
and isolated areas of distress.
``(B) Transportation and telecommunication infrastructure
for the purpose of facilitating economic development in the
region.
``(C) Business development, with emphasis on
entrepreneurship.
``(D) Job training or employment-related education, with
emphasis on use of existing public educational institutions
located in the region.
``SEC. 3825. SUPPLEMENTS TO FEDERAL GRANT PROGRAMS.
``(a) Finding.--Congress finds that certain States and
local communities of the region may be unable to take maximum
advantage of Federal grant programs for which the States and
communities are eligible because--
``(1) the States and communities lack the economic
resources to provide the required matching share; or
``(2) there are insufficient funds available under the
applicable Federal law authorizing the Federal grant program
to meet pressing needs of the region.
``(b) Federal Grant Program Funding.--Notwithstanding any
provision of law limiting the Federal share, the areas
eligible for assistance, or the authorizations of
appropriations, under any Federal grant program, and in
accordance with subsection (c), the Authority, with the
approval of the Federal cochairperson and with respect to a
project to be carried out in the region--
``(1) may increase the Federal share of the costs of a
project under any Federal grant program to not more than 90
percent (except as provided in section 3827(b)); and
``(2) shall use amounts made available to carry out this
chapter to pay the increased Federal share.
``(c) Certifications.--
``(1) In general.--In the case of any project for which all
or any portion of the basic Federal share of the costs of the
project is proposed to be paid under this section, no Federal
contribution shall be made until the Federal official
administering the Federal law that authorizes the Federal
grant program certifies that the project--
``(A) meets (except as provided in subsection (b)) the
applicable requirements of the applicable Federal grant
program; and
``(B) could be approved for Federal contribution under the
Federal grant program if funds were available under the law
for the project.
``(2) Certification by authority.--
``(A) In general.--The certifications and determinations
required to be made by the Authority for approval of projects
under this Act in accordance with section 3830 shall be--
``(i) controlling; and
``(ii) accepted by the Federal agencies.
``(B) Acceptance by federal cochairperson.--In the case of
any project described in paragraph (1), any finding, report,
certification, or documentation required to be submitted with
respect to the project to the head of the department, agency,
or instrumentality of the Federal Government responsible for
the administration of the Federal grant program under which
the project is carried out shall be accepted by the Federal
cochairperson.
``SEC. 3826. MULTISTATE AND LOCAL DEVELOPMENT DISTRICTS AND
ORGANIZATIONS AND NORTHERN GREAT PLAINS INC.
``(a) Definition of Multistate and Local Development
District or Organization.--In this section, the term
`multistate and local development district or organization'
means an entity--
``(1) that--
``(A) is a planning district that is recognized by the
Economic Development Administration of the Department of
Commerce; or
``(B) is--
``(i) organized and operated in a manner that ensures
broad-based community participation and an effective
opportunity for other nonprofit groups to contribute to the
development and implementation of programs in the region;
``(ii) a nonprofit incorporated body organized or chartered
under the law of the State in which the entity is located;
``(iii) a nonprofit agency or instrumentality of a State or
local government;
``(iv) a public organization established before the date of
enactment of the Agriculture Reform, Food, and Jobs Act of
2012 under State law for creation of multijurisdictional,
area-wide planning organizations;
``(v) a nonprofit agency or instrumentality of a State that
was established for the purpose of assisting with multistate
cooperation; or
``(vi) a nonprofit association or combination of bodies,
agencies, and instrumentalities described in clauses (ii)
through (v); and
``(2) that has not, as certified by the Authority (in
consultation with the Federal cochairperson or Secretary, as
appropriate)--
``(A) inappropriately used Federal grant funds from any
Federal source; or
``(B) appointed an officer who, during the period in which
another entity inappropriately used Federal grant funds from
any Federal source, was an officer of the other entity.
``(b) Grants to Multistate, Local, or Regional Development
Districts and Organizations.--
``(1) In general.--The Authority may make grants for
administrative expenses under this section to multistate,
local, and regional development districts and organizations.
``(2) Conditions for grants.--
``(A) Maximum amount.--The amount of any grant awarded
under paragraph (1) shall not exceed 80 percent of the
administrative expenses of the multistate, local, or regional
development district or organization receiving the grant.
``(B) Maximum period.--No grant described in paragraph (1)
shall be awarded for a period of greater than 3 years.
``(3) Local share.--The contributions of a multistate,
local, or regional development district or organization for
administrative expenses may be in cash or in kind, fairly
evaluated, including space, equipment, and services.
``(c) Duties.--
``(1) In general.--Except as provided in paragraph (2), a
local development district shall operate as a lead
organization serving multicounty areas in the region at the
local level.
``(2) Designation.--The Federal cochairperson may designate
an Indian tribe or multijurisdictional organization to serve
as a lead organization in such cases as the Federal
cochairperson or Secretary, as appropriate, determines
appropriate.
``(d) Northern Great Plains Inc.--Northern Great Plains
Inc., a nonprofit corporation incorporated in the State of
Minnesota to implement the recommendations of the Northern
Great Plains Rural Development Commission established by the
Northern Great Plains Rural Development Act (7 U.S.C. 2661
note; Public Law 103 318)--
``(1) shall serve as an independent, primary resource for
the Authority on issues of concern to the region;
``(2) shall advise the Authority on development of
international trade;
``(3) may provide research, education, training, and other
support to the Authority; and
``(4) may carry out other activities on its own behalf or
on behalf of other entities.
``SEC. 3827. DISTRESSED COUNTIES AND AREAS AND NONDISTRESSED
COUNTIES.
``(a) Designations.--Each year, the Authority, in
accordance with such criteria as the Authority may establish,
shall designate--
[[Page S4071]]
``(1) as distressed counties, counties in the region that
are the most severely and persistently distressed and
underdeveloped and have high rates of poverty, unemployment,
or outmigration;
``(2) as nondistressed counties, counties in the region
that are not designated as distressed counties under
paragraph (1); and
``(3) as isolated areas of distress, areas located in
nondistressed counties (as designated under paragraph (2))
that have high rates of poverty, unemployment, or
outmigration.
``(b) Distressed Counties.--
``(1) In general.--The Authority shall allocate at least 50
percent of the appropriations made available under section
3834 for programs and projects designed to serve the needs of
distressed counties and isolated areas of distress in the
region.
``(2) Funding limitations.--The funding limitations under
section 3825(b) shall not apply to a project to provide
transportation or telecommunication or basic public services
to residents of 1 or more distressed counties or isolated
areas of distress in the region.
``(c) Transportation, Telecommunication, Renewable Energy,
and Basic Public Infrastructure.--The Authority shall
allocate at least 50 percent of any funds made available
under section 3834 for transportation, telecommunication,
renewable energy, and basic public infrastructure projects
authorized under paragraphs (1) and (3) of section 3824(a).
``SEC. 3828. DEVELOPMENT PLANNING PROCESS.
``(a) State Development Plan.--In accordance with policies
established by the Authority, each State member shall submit
a development plan for the area of the region represented by
the State member.
``(b) Content of Plan.--A State development plan submitted
under subsection (a) shall reflect the goals, objectives, and
priorities identified in the regional development plan
developed under section 3823(d)(2).
``(c) Consultation With Interested Local Parties.--In
carrying out the development planning process (including the
selection of programs and projects for assistance), a State
may--
``(1) consult with--
``(A) multistate, regional, and local development districts
and organizations; and
``(B) local units of government; and
``(2) take into consideration the goals, objectives,
priorities, and recommendations of the entities described in
paragraph (1).
``(d) Public Participation.--
``(1) In general.--The Authority and applicable multistate,
regional, and local development districts and organizations
shall encourage and assist, to the maximum extent
practicable, public participation in the development,
revision, and implementation of all plans and programs under
this chapter.
``(2) Regulations.--The Authority shall develop guidelines
for providing public participation described in paragraph
(1), including public hearings.
``SEC. 3829. PROGRAM DEVELOPMENT CRITERIA.
``(a) In General.--In considering programs and projects to
be provided assistance under this chapter, and in
establishing a priority ranking of the requests for
assistance provided to the Authority, the Authority shall
follow procedures that ensure, to the maximum extent
practicable, consideration of--
``(1) the relationship of the project or class of projects
to overall multistate or regional development;
``(2) the per capita income and poverty and unemployment
and outmigration rates in an area;
``(3) the financial resources available to the applicants
for assistance seeking to carry out the project, with
emphasis on ensuring that projects are adequately financed to
maximize the probability of successful economic development;
``(4) the importance of the project or class of projects in
relation to other projects or classes of projects that may be
in competition for the same funds;
``(5) the prospects that the project for which assistance
is sought will improve, on a continuing rather than a
temporary basis, the opportunities for employment, the
average level of income, or the economic development of the
area to be served by the project; and
``(6) the extent to which the project design provides for
detailed outcome measurements by which grant expenditures and
the results of the expenditures may be evaluated.
``(b) No Relocation Assistance.--
``(1) In general.--Except as provided in paragraph (2), no
financial assistance authorized by this chapter shall be used
to assist a person or entity in relocating from 1 area to
another.
``(2) Outside businesses.--Financial assistance under this
chapter may be used as otherwise authorized by this title to
attract businesses from outside the region to the region.
``(c) Maintenance of Effort.--Funds may be provided for a
program or project in a State under this chapter only if the
Authority determines that the level of Federal or State
financial assistance provided under a law other than this
chapter, for the same type of program or project in the same
area of the State within the region, will not be reduced as a
result of funds made available by this chapter.
``SEC. 3830. APPROVAL OF DEVELOPMENT PLANS AND PROJECTS.
``(a) In General.--A State or regional development plan or
any multistate subregional plan that is proposed for
development under this chapter shall be reviewed by the
Authority.
``(b) Evaluation by State Member.--An application for a
grant or any other assistance for a project under this
chapter shall be made through and evaluated for approval by
the State member of the Authority representing the applicant.
``(c) Certification.--An application for a grant or other
assistance for a project shall be approved only on
certification by the State member that the application for
the project--
``(1) describes ways in which the project complies with any
applicable State development plan;
``(2) meets applicable criteria under section 3829;
``(3) provides adequate assurance that the proposed project
will be properly administered, operated, and maintained; and
``(4) otherwise meets the requirements of this chapter.
``(d) Votes for Decisions.--On certification by a State
member of the Authority of an application for a grant or
other assistance for a specific project under this section,
an affirmative vote of the Authority under section 3822(c)
shall be required for approval of the application.
``SEC. 3831. CONSENT OF STATES.
`` ``Nothing in this chapter requires any State to engage
in or accept any program under this chapter without the
consent of the State.
``SEC. 3832. RECORDS.
``(a) Records of the Authority.--
``(1) In general.--The Authority shall maintain accurate
and complete records of all transactions and activities of
the Authority.
``(2) Availability.--All records of the Authority shall be
available for audit and examination by the Comptroller
General of the United States and the Inspector General of the
Department of Agriculture (including authorized
representatives of the Comptroller General and the Inspector
General of the Department of Agriculture).
``(b) Records of Recipients of Federal Assistance.--
``(1) In general.--A recipient of Federal funds under this
chapter shall, as required by the Authority, maintain
accurate and complete records of transactions and activities
financed with Federal funds and report to the Authority on
the transactions and activities to the Authority.
``(2) Availability.--All records required under paragraph
(1) shall be available for audit by the Comptroller General
of the United States, the Inspector General of the Department
of Agriculture, and the Authority (including authorized
representatives of the Comptroller General, the Inspector
General of the Department of Agriculture, and the Authority).
``(c) Annual Audit.--The Inspector General of the
Department of Agriculture shall audit the activities,
transactions, and records of the Authority on an annual
basis.
``SEC. 3833. ANNUAL REPORT.
``Not later than 180 days after the end of each fiscal
year, the Authority shall submit to the President and to
Congress a report describing the activities carried out under
this chapter.
``SEC. 3834. AUTHORIZATION OF APPROPRIATIONS.
``(a) In General.--There is authorized to be appropriated
to the Authority to carry out this chapter $30,000,000 for
each of fiscal years 2012 through 2017, to remain available
until expended.
``(b) Administrative Expenses.--Not more than 5 percent of
the amount appropriated under subsection (a) for a fiscal
year shall be used for administrative expenses of the
Authority.
``(c) Minimum State Share of Grants.--Notwithstanding any
other provision of this chapter, for any fiscal year, the
aggregate amount of grants received by a State and all
persons or entities in the State under this chapter shall be
not less than \1/3\ of the product obtained by multiplying--
``(1) the aggregate amount of grants under this chapter for
the fiscal year; and
``(2) the ratio that--
``(A) the population of the State (as determined by the
Secretary of Commerce based on the most recent decennial
census for which data are available); bears to
``(B) the population of the region (as so determined).
``SEC. 3835. TERMINATION OF AUTHORITY.
``The authority provided by this chapter terminates
effective October 1, 2017.
``Subtitle C--General Provisions
``SEC. 3901. 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 of
insurance or guarantee is executed; or
``(2) participates in or condones.
``SEC. 3902. PURCHASE AND SALE OF GUARANTEED PORTIONS OF
LOANS.
``(a) In General.--Subject to subsections (b) and (c), the
Secretary may purchase, on such terms and conditions as the
Secretary
[[Page S4072]]
considers appropriate, the guaranteed portion of a loan
guaranteed under this title, if the Secretary determines that
an adequate secondary market is not available in the private
sector.
``(b) Maximum Payment.--The Secretary may not pay for any
guaranteed portion of a loan under subsection (a) in excess
of an amount equal to the unpaid principal balance and
accrued interest on the guaranteed portion of the loan.
``(c) Sources of Funding.--The Secretary may use for the
purchases--
``(1) funds from the Rural Development Insurance Fund with
respect to rural development loans (as defined in section
3704(a)); and
``(2) funds from the Agricultural Credit Insurance Fund
with respect to all other loans under this title.
``(d) Sale of Guaranteed Loans.--
``(1) Sales.--
``(A) Regulation.--
``(i) In general.--The guaranteed portion of any loan made
under this title may be sold by the lender, and by any
subsequent holder, in accordance with such regulations
governing the sales as the Secretary shall establish, subject
to clauses (ii) and (iii).
``(ii) Fees to be paid in full.--All fees due the Secretary
with respect to a guaranteed loan shall be paid in full
before any sale.
``(iii) Loan to be fully disbursed.--The loan shall be
fully disbursed to the borrower before the sale.
``(B) Post-sale.--After a loan is sold in the secondary
market, the lender shall--
``(i) remain obligated under the guarantee agreement of the
lender with the Secretary; and
``(ii) continue to service the loan in accordance with the
terms and conditions of that agreement.
``(C) Procedures.--The Secretary shall develop such
procedures as are necessary for--
``(i) the facilitation, administration, and promotion of
secondary market operations; and
``(ii) determining the increase of access of farmers to
capital at reasonable rates and terms as a result of
secondary market operations.
``(D) Rights to prepay.--This subsection does not impede or
extinguish--
``(i) the right of the borrower or the successor in
interest to the borrower to prepay (in whole or in part) any
loan made under this title; or
``(ii) the rights of any party under any provision of this
title.
``(2) Issue pool certificates.--
``(A) In general.--The Secretary may, directly or through a
market maker approved by the Secretary, issue pool
certificates representing ownership of part or all of the
guaranteed portion of any loan guaranteed by the Secretary
under this title.
``(B) Approval.--Certificates under subparagraph (A) shall
be based on and backed by a pool established or approved by
the Secretary and composed solely of the entire guaranteed
portion of the loans.
``(C) Guarantee of pool.--On such terms and conditions as
the Secretary considers appropriate, the Secretary may
guarantee the timely payment of the principal and interest on
pool certificates issued on behalf of the Secretary by
approved market makers for purposes of this subsection.
``(D) Limitations.--A guarantee under subparagraph (C)
shall be limited to the extent of principal and interest on
the guaranteed portions of loans that compose the pool.
``(E) Prepayment.--If a loan in a pool is prepaid, either
voluntarily or by reason of default, the guarantee of timely
payment of principal and interest on the pool certificates
shall be reduced in proportion to the amount of principal and
interest that the prepaid loan represents in the pool.
``(F) Interest accrual.--Interest on prepaid or defaulted
loans shall accrue and be guaranteed by the Secretary only
through the date of payment on the guarantee.
``(G) Redemption.--During the term of the pool certificate,
the certificate may be called for redemption due to
prepayment or default of all loans constituting the pool.
``(H) Full faith and credit.--The full faith and credit of
the United States is pledged to the payment of all amounts
that may be required to be paid under any guarantee of the
pool certificates issued by approved market makers under this
subsection.
``(I) Fees.--
``(i) In general.--The Secretary shall not collect any fee
for any guarantee under this subsection.
``(ii) Secretarial functions.--Clause (i) does not preclude
the Secretary from collecting a fee for the functions
described in paragraph (3).
``(J) Default.--Not later than 30 days after a borrower of
a guaranteed loan is in default of any principal or interest
payment due for 60 days or more, the Secretary shall--
``(i) purchase the pool certificates representing ownership
of the guaranteed portion of the loan; and
``(ii) pay the registered holder of the certificates an
amount equal to the guaranteed portion of the loan
represented by the certificate.
``(K) Payment of claims.--If the Secretary pays a claim
under a guarantee issued under this subsection, the claim
shall be subrogated fully to the rights satisfied by the
payment, as may be provided by the Secretary.
``(L) Application of laws.--No State or local law, and no
Federal law, shall preclude or limit the exercise by the
Secretary of the ownership rights of the Secretary in the
portions of loans constituting the pool against which the
certificates are issued.
``(3) Duties of the secretary.--
``(A) In general.--On the adoption of final rules and
regulations, the Secretary shall--
``(i) provide for the central collection of registration
information from all participating market makers for all
loans and pool certificates sold under paragraphs (1) and
(2), including, with respect to each original sale and any
subsequent sale--
``(I) identification of the interest rate paid by the
borrower to the lender;
``(II) the servicing fee of the lender;
``(III) disclosure of whether interest on the loan is at a
fixed or variable rate;
``(IV) identification of each purchaser of a pool
certificate;
``(V) the interest rate paid on the certificate; and
``(VI) such other information as the Secretary considers
appropriate.
``(ii) before any sale, require the seller (as defined in
subparagraph (B) to disclose to each prospective purchaser of
the portion of a loan guaranteed under this title and to each
prospective purchaser of a pool certificate issued under
paragraph (2) information on the terms, conditions, and yield
of such instrument;
``(iii) provide for adequate custody of any pooled
guaranteed loans;
``(iv) take such actions as are necessary, in restructuring
pools of the guaranteed portion of loans, to minimize the
estimated costs of paying claims under guarantees issued
under this subsection;
``(v) require each market maker--
``(I) to service all pools formed, and participations sold,
by the market maker; and
``(II) to provide the Secretary with information relating
to the collection and disbursement of all periodic payments,
prepayments, and default funds from lenders, to or from the
reserve fund that the Secretary shall establish to enable the
timely payment guarantee to be self-funding, and from all
beneficial holders; and
``(vi) regulate market makers in pool certificates sold
under this subsection.
``(B) Definition of seller.--For purposes of subparagraph
(A)(ii), if the instrument being sold is a loan, the term
`seller' does not include--
``(i) the person who made the loan; or
``(ii) any person who sells 3 or fewer guaranteed loans per
year.
``(4) Contract for services.--The Secretary may contract
for goods and services to be used for the purposes of this
subsection without regard to titles 5, 40, and 41, United
States Code (including any regulations issued under those
titles).
``SEC. 3903. ADMINISTRATION.
``(a) Powers of Secretary.--The Secretary may--
``(1)(A) administer the powers and duties of the Secretary
through such national, area, State, or local offices and
employees in the United States as the Secretary determines to
be necessary; and
``(B) authorize an office to serve an area composed of 2 or
more States if the Secretary determines that the volume of
business in the area is not sufficient to justify separate
State offices;
``(2)(A) accept and use voluntary and uncompensated
services; and
``(B) with the consent of the agency concerned, use the
officers, employees, equipment, and information of any agency
of the Federal Government, or of any State, territory, or
political subdivision;
``(3) subject to appropriations, make necessary
expenditures for the purchase or hire of passenger vehicles,
and such other facilities and services as the Secretary may
from time to time find necessary for the proper
administration of this title;
``(4) subject to subsection (b), compromise, adjust,
reduce, or charge-off debts or claims (including debts and
claims arising from loan guarantees), and adjust, modify,
subordinate, or release the terms of security instruments,
leases, contracts, and agreements entered into or
administered by the Farm Service Agency, the Rural Utilities
Service, the Rural Housing Service, the Rural Business-
Cooperative Service, or successor agencies under this title,
except for activities conducted under the Housing Act of 1949
(42 U.S.C. 1441 et seq.);
``(5) release mortgage and other contract liens if it
appears that the mortgage and liens have no present or
prospective value or that the enforcement of the mortgage and
liens likely would be ineffectual or uneconomical;
``(6) obtain fidelity bonds protecting the Federal
Government against fraud and dishonesty of officers and
employees of the Farm Service Agency, the Rural Utilities
Service, the Rural Housing Service, or the Rural Business-
Cooperative Service in lieu of faithful performance of duties
bonds under section 14 of title 6, United States Code, but
otherwise in accordance with the section;
``(7) consent to--
``(A) long-term leases of facilities financed under this
title notwithstanding the failure of the lessee to meet any
of the requirements of this title if the long-term leases are
necessary to ensure the continuation of services for which
financing was extended to the lessor; and
``(B) the transfer of property securing any loan or
financed by any loan or grant made or guaranteed by the Farm
Service Agency,
[[Page S4073]]
the Rural Utilities Service, the Rural Housing Service, or
the Rural Business-Cooperative Service under this title, or
any other law administered by the Secretary, on such terms as
the Secretary considers necessary to carry out the purpose of
the loan or grant or to protect the financial interest of the
Federal Government, provided that the Secretary shall
document the consent of the Secretary for the transfer of the
property of a borrower in the file of the borrower; and
``(8) notwithstanding that an area ceases, or has ceased,
to be rural, in a rural area, or an eligible area, make loans
and grants, and approve transfers and assumptions, under this
title on the same basis as though the area still was rural in
connection with property securing any loan made or guaranteed
by the Secretary under this title or in connection with any
property held by the Secretary under this title.
``(b) Loan Adjustments.--
``(1) No liquidation of property.--The Secretary may not
require liquidation of property securing any farmer program
loan or acceleration of any payment required under any farmer
program loan as a prerequisite to initiating an action
authorized under subsection (a).
``(2) Release of personal liability.--
``(A) In general.--Except as provided in subparagraph (B),
the Secretary may release a borrower or other person
obligated on a debt (other than debt incurred under the
Housing Act of 1949 (42 U.S.C. 1441 et seq.)) from personal
liability with or without payment of any consideration at the
time of the compromise, adjustment, reduction, or charge-off
of any claim.
``(B) Exception.--No compromise, adjustment, reduction, or
charge-off of any claim may be made or carried out after the
claim has been referred to the Attorney General, unless the
Attorney General approves.
``(3) Rural electrification security instruments.--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 paragraph (2).
``(c) Simplified Application Forms for Loan Guarantees.--
``(1) In general.--The Secretary shall provide to lenders a
short, simplified application form for guarantees under this
title of--
``(A) farmer program loans the principal amount of which is
$125,000 or less; and
``(B) business and industry guaranteed loans under section
3601(a)(2)(A) the principal amount of which is--
``(i) in the case of a loan guarantee made during fiscal
year 2002 or 2003, $400,000 or less; and
``(ii) in the case of a loan guarantee made during any
subsequent fiscal year--
``(I) $400,000 or less; or
``(II) if the Secretary determines that there is not a
significant increased risk of a default on the loan, $600,000
or less.
``(2) Water and waste disposal grants and loans.--The
Secretary shall develop an application process that
accelerates, to the maximum extent practicable, the
processing of applications for water and waste disposal
grants or direct or guaranteed loans under section 3501(a)(1)
the grant award amount or principal loan amount,
respectively, of which is $300,000 or less.
``(3) Administration.--In developing an application under
this subsection, the Secretary shall--
``(A) consult with commercial and cooperative lenders; and
``(B) ensure that--
``(i) the form can be completed manually or electronically,
at the option of the lender;
``(ii) the form minimizes the documentation required to
accompany the form;
``(iii) the cost of completing and processing the form is
minimal; and
``(iv) the form can be completed and processed in an
expeditious manner.
``(d) Use of Attorneys for Prosecution or Defense of
Claims.--The Secretary may use for the prosecution or defense
of any claim or obligation described in subsection (a)(5) the
Attorney General, the General Counsel of the Department, or a
private attorney who has entered into a contract with the
Secretary.
``(e) Private Collection Agency.--The Secretary may use a
private collection agency to collect a claim or obligation
described in subsection (a)(5).
``(f) Security Servicing.--
``(1) In general.--The Secretary may--
``(A) make advances, without regard to any loan or total
indebtedness limitation, to preserve and protect the security
for, or the lien or priority of the lien securing any loan or
other indebtedness owing to or acquired by the Secretary
under this title or under any other program administered by
the Farm Service Agency, the Rural Utilities Service, the
Rural Housing Service, or the Rural Business-Cooperative
Service applicable program, as determined by the Secretary;
and
``(B)(i) bid for and purchase at any execution,
foreclosure, or other sale or otherwise acquire property on
which the United States has a lien by reason of a judgment or
execution arising from, or that is pledged, mortgaged,
conveyed, attached, or levied on to secure the payment of,
the indebtedness regardless of whether the property is
subject to other liens;
``(ii) accept title to any property so purchased or
acquired; and
``(iii) sell, manage, or otherwise dispose of the property
in accordance with this subsection.
``(2) Operation or lease of realty.--Except as provided in
subsections (c) and (e), real property administered under
this title may be operated or leased by the Secretary for
such period as the Secretary may consider necessary to
protect the investment of the Federal Government in the
property.
``(g) Payments to Lenders.--
``(1) Requirement.--Not later than 90 days after a court of
competent jurisdiction confirms a plan of reorganization
under chapter 12 of title 11, United States Code, for any
borrower to whom a lender has made a loan guaranteed under
this title, the Secretary shall pay the lender an amount
estimated by the Secretary to be equal to the loss incurred
by the lender for purposes of the guarantee.
``(2) Payment toward loan guarantee.--Any amount paid to a
lender under this subsection with respect to a loan
guaranteed under this title shall be treated as payment
towards satisfaction of the loan guarantee.
``SEC. 3904. LOAN MORATORIUM AND POLICY ON FORECLOSURES.
``(a) In General.--In addition to any other authority that
the Secretary may have to defer principal and interest and
forgo foreclosure, the Secretary may permit, at the request
of the borrower, the deferral of principal and interest on
any outstanding loan made or guaranteed by the Secretary
under this title, or under any other law administered by the
Farm Service Agency, the Rural Utilities Service, the Rural
Housing Service, or the Rural Business-Cooperative Service,
and may forgo foreclosure of the loan, for such period as the
Secretary considers necessary on a showing by the borrower
that, due to circumstances beyond the control of the
borrower, the borrower is temporarily unable to continue
making payments of the principal and interest when due
without unduly impairing the standard of living of the
borrower.
``(b) Interest.--
``(1) In general.--Except as provided in paragraph (2), the
Secretary may permit any loan deferred under this section to
bear no interest during or after the deferral period.
``(2) Exception.--If the security instrument securing the
loan is foreclosed, such interest as is included in the
purchase price at the foreclosure shall become part of the
principal and draw interest from the date of foreclosure at
the rate prescribed by law.
``(c) Moratorium Regarding Civil Rights Claims.--
``(1) In general.--Except as otherwise provided in this
subsection, effective beginning on May 22, 2008, there shall
be in effect a moratorium, with respect to farmer program
loans made under subtitle A, on all acceleration and
foreclosure proceedings instituted by the Department against
any farmer who--
``(A) has pending against the Department a claim of program
discrimination that is accepted by the Department as valid;
or
``(B) files a claim of program discrimination that is
accepted by the Department as valid.
``(2) Waiver of interest and offsets.--During the period of
the moratorium, the Secretary shall waive the accrual of
interest and offsets on all farmer program loans made under
subtitle A, B, or C for which loan acceleration or
foreclosure proceedings have been suspended under paragraph
(1).
``(3) Termination of moratorium.--The moratorium shall
terminate with respect to a claim of discrimination by a
farmer on the earlier of--
``(A) the date the Secretary resolves the claim; or
``(B) if the farmer appeals the decision of the Secretary
on the claim to a court of competent jurisdiction, the date
that the court renders a final decision on the claim.
``(4) Failure to prevail.--If a farmer does not prevail on
a claim of discrimination described in paragraph (1), the
farmer shall be liable for any interest and offsets that
accrued during the period that loan acceleration or
foreclosure proceedings have been suspended under paragraph
(1).
``SEC. 3905. OIL AND GAS ROYALTY PAYMENTS ON LOANS.
``(a) In General.--The Secretary shall permit a borrower of
a loan made or guaranteed under this title to make a
prospective payment on the loan with proceeds from--
``(1) the leasing of oil, gas, or other mineral rights to
real property used to secure the loan; or
``(2) the sale of oil, gas, or other minerals removed from
real property used to secure the loan, if the value of the
rights to the oil, gas, or other minerals has not been used
to secure the loan.
``(b) Applicability.--Subsection (a) shall not apply to a
borrower of a loan made or guaranteed under this title with
respect to which a liquidation or foreclosure proceeding was
pending on December 23, 1985.
``SEC. 3906. TAXATION.
``(a) In General.--Except as provided in subsection (b),
all property subject to a lien held by the United States or
the title to which is acquired or held by the Secretary under
this title (other than property used for administrative
purposes) shall be subject to taxation by State, territory,
district, and local political subdivisions in the same manner
and to the same extent as other property is taxed.
``(b) Exceptions.--No tax shall be imposed or collected as
described in subsection (a) if the tax (whether as a tax on
the instrument or in connection with conveying, transferring,
or recording the instrument) is based on--
[[Page S4074]]
``(1) the value of any notes or mortgages or other lien
instruments held by or transferred to the Secretary;
``(2) any notes or lien instruments administered under this
title that are made, assigned, or held by a person otherwise
liable for the tax; or
``(3) the value of any property conveyed or transferred to
the Secretary.
``(c) Failure to Pay or Collect Tax.--The failure to pay or
collect a tax under subsection (a) shall not--
``(1) be a ground for--
``(A) refusal to record or file an instrument; or
``(B) failure to provide notice; or
``(2) prevent the enforcement of the instrument in any
Federal or State court.
``SEC. 3907. CONFLICTS OF INTEREST.
``(a) Acceptance of Consideration Prohibited.--No officer,
attorney, or other employee of the Department shall, directly
or indirectly, be the beneficiary of or receive any fee,
commission, gift, or other consideration for or in connection
with any transaction or business under this title other than
such salary, fee, or other compensation as the officer,
attorney, or employee may receive as the officer, attorney,
or employee.
``(b) Acquisition of Interest in Land Prohibited.--
``(1) In general.--Except as provided in paragraph (2), no
officer or employee of the Department who acts on or reviews
an application made by any person under this title for a loan
to purchase land may acquire, directly or indirectly, any
interest in the land for a period of 3 years after the date
on which the action is taken or the review is made.
``(2) Former county committee members.--Paragraph (1) shall
not apply to a former member of a county committee on a
determination by the Secretary, prior to the acquisition of
the interest, that the former member acted in good faith when
acting on or reviewing the application.
``(c) Certifications on Loans to Family Members
Prohibited.--No member of a county committee shall knowingly
make or join in making any certification with respect to--
``(1) a loan to purchase any land in which the member, or
any person related to the member within the second degree of
consanguinity or affinity, has or may acquire any interest;
or
``(2) any applicant related to the member within the second
degree of consanguinity or affinity.
``(d) Penalties.--Any person violating this section shall,
on conviction of the violation, be punished by a fine of not
more than $2,000 or imprisonment for not more than 2 years,
or both.
``SEC. 3908. LOAN SUMMARY STATEMENTS.
``(a) Definition of Summary Period.--In this section, the
term `summary period' means the period beginning on the date
of issuance of the preceding loan summary statement and
ending on the date of issuance of the current loan summary
statement.
``(b) Issuance of Statements.--On the request of a borrower
of a loan made (but not guaranteed) under this title, the
Secretary shall issue to the borrower a loan summary
statement that reflects the account activity during the
summary period for each loan made under this title to the
borrower, including--
``(1) the outstanding amount of principal due on each loan
at the beginning of the summary period;
``(2) the interest rate charged on each loan;
``(3) the amount of payments made on, and the application
of the payments to, each loan during the summary period and
an explanation of the basis for the application of the
payments;
``(4) the amount of principal and interest due on each loan
at the end of the summary period;
``(5) the total amount of unpaid principal and interest on
all loans at the end of the summary period;
``(6) any delinquency in the repayment of any loan;
``(7) a schedule of the amount and date of payments due on
each loan; and
``(8) the procedure the borrower may use to obtain more
information concerning the status of the loans.
``SEC. 3909. CERTIFIED LENDERS PROGRAM.
``(a) Certified Lenders Program.--
``(1) In general.--The Secretary shall establish a program
under which the Secretary shall guarantee loans under this
title that are made by lending institutions certified by the
Secretary.
``(2) Certification requirements.--The Secretary shall
certify a lending institution that meets such criteria as the
Secretary may prescribe in regulations, including the ability
of the institution to properly make, service, and liquidate
the loans of the institution.
``(3) Condition of certification.--
``(A) In general.--As a condition of the certification, the
Secretary shall require the institution to undertake to
service the loans guaranteed by the Secretary under this
section, using standards that are not less stringent than
generally accepted banking standards concerning loan
servicing employed by prudent commercial or cooperative
lenders.
``(B) Monitoring.--The Secretary shall, at least annually,
monitor the performance of each certified lender to ensure
that the conditions of the certification are being met.
``(4) Effect of certification.--Notwithstanding any other
provision of law:
``(A) Amount of loan guarantee.--In the case of a loan made
or guaranteed under subtitle A, the Secretary shall guarantee
80 percent of a loan made under this section by a certified
lending institution as described in paragraph (1), subject to
a determination that the borrower of the loan meets the
eligibility requirements and such other criteria as may be
applicable to loans guaranteed by the Secretary under other
provisions of this title.
``(B) Certifications by lending institutions.--In the case
of loans to be guaranteed by the Secretary under this
section, the Secretary shall permit certified lending
institutions to make appropriate certifications (as provided
by regulations issued by the Secretary)--
``(i) relating to issues such as creditworthiness,
repayment ability, adequacy of collateral, and feasibility of
farm operation; and
``(ii) that the borrower is in compliance with all
requirements of law, including regulations issued by the
Secretary.
``(C) Approval process.--
``(i) In general.--The Secretary shall approve or
disapprove a guarantee not later than 14 days after the date
that the lending institution applies to the Secretary for the
guarantee.
``(ii) Disapproval.--If the Secretary disapproves the loan
application during the 14-day period, the Secretary shall
state, in writing, all of the reasons the application was
disapproved.
``(5) Relationship to other requirements.--Nothing in this
section affects the responsibility of the Secretary to
certify eligibility, review financial information, and
otherwise assess an application.
``(b) Preferred Certified Lenders Program.--
``(1) In general.--The Secretary shall establish a
Preferred Certified Lenders Program for lenders under this
title who establish--
``(A) knowledge of, and experience under, the program
established under subsection (a);
``(B) knowledge of the regulations concerning the
guaranteed loan program; and
``(C) proficiency related to the certified lender program
requirements.
``(2) Revocation of designation.--
``(A) In general.--Subject to subparagraph (B), the
designation of a lender as a Preferred Certified Lender shall
be revoked at any time--
``(i) that the Secretary determines that the lender is not
adhering to the rules and regulations applicable to the
program; or
``(ii) if the loss experiences of a Preferred Certified
Lender are excessive as compared to other Preferred Certified
Lenders.
``(B) Effect.--A suspension or revocation under
subparagraph (A) shall not affect any outstanding guarantee.
``(3) Condition of certification.--As a condition of
preferred certification, the Secretary shall require the
institution to undertake to service the loans guaranteed by
the Secretary under this subsection using generally accepted
banking standards concerning loan servicing employed by
prudent commercial or cooperative lenders.
``(4) Monitoring.--The Secretary shall, at least annually,
monitor the performance of each Preferred Certified Lender to
ensure that the conditions of certification are being met.
``(5) Effect of preferred lender certification.--
``(A) In general.--Notwithstanding any other provision of
law, the Secretary shall--
``(i) guarantee 80 percent of an approved loan made by a
certified lending institution as described in this
subsection, subject to a determination that the borrower
meets the eligibility requirements or such other criteria as
may be applicable to loans guaranteed by the Secretary under
other provisions of this title;
``(ii) permit certified lending institutions--
``(I) to make all decisions, with respect to loans to be
guaranteed by the Secretary under this subsection relating to
credit worthiness, the closing, monitoring, collection and
liquidation of loans; and
``(II) to accept appropriate certifications, as provided by
regulations issued by the Secretary, that the borrower is in
compliance with all requirements of law or regulations
promulgated by the Secretary; and
``(iii) be considered to have guaranteed 80 percent of a
loan made by a preferred certified lending institution as
described in paragraph (1), if the Secretary fails to approve
or reject the application of such institution within 14
calendar days after the date that the lending institution
presented the application to the Secretary.
``(B) Requirement.--If the Secretary rejects an application
under subparagraph (A)(iii) during the 14-day period, the
Secretary shall state, in writing, the reasons the
application was rejected.
``(c) Administration of Certified Lenders and Preferred
Certified Lenders Programs.--The Secretary may administer the
loan guarantee programs under subsections (a) and (b) through
central offices established in States or in multi-State areas
``SEC. 3910. LOANS TO RESIDENT ALIENS.
``(a) In General.--Notwithstanding the provisions of this
title limiting the making of a loan to a citizen of the
United States, the Secretary may make a loan under this title
to an alien lawfully admitted to the United States for
permanent residence under the Immigration and Nationality Act
(8 U.S.C. 1101 et seq.).
[[Page S4075]]
``(b) Regulations.--
``(1) In general.--No loan may be made under this title to
an alien referred to in subsection (a) until the Secretary
issues regulations establishing the terms and conditions
under which the alien may receive the loan.
``(2) Requirement.--The Secretary shall submit the
regulations to the Committee on Agriculture of the House of
Representatives and the Committee on Agriculture, Nutrition,
and Forestry of the Senate at least 30 days prior to the date
on which the regulations are published in the Federal
Register.
``SEC. 3911. EXPEDITED CLEARING OF TITLE TO INVENTORY
PROPERTY.
``(a) In General.--The Secretary may employ local
attorneys, on a case-by-case basis, to process all legal
procedures necessary to clear the title to foreclosed
properties in the inventory of the Department.
``(b) Compensation.--Attorneys shall be compensated at not
more than the usual and customary charges of the attorneys
for the work.
``SEC. 3912. PROHIBITION ON USE OF LOANS FOR CERTAIN
PURPOSES.
``(a) In General.--Except as provided in subsections (b)
and (c), the Secretary may not approve a loan under this
title to drain, dredge, fill, level, or otherwise manipulate
a wetland (as defined in section 1201(a) of the Food Security
Act of 1985 (16 U.S.C. 3801(a))), or to engage in any
activity that results in impairing or reducing the flow,
circulation, or reach of water.
``(b) Prior Activity.--Subsection (a) does not apply in the
case of--
``(1) an activity related to the maintenance of a
previously converted wetland; or
``(2) in the case of an activity that had already commenced
before November 28, 1990.
``(c) Exception.--This section shall not apply to a loan
made or guaranteed under this title for a utility line.
``SEC. 3913. TRANSFER OF LAND TO SECRETARY.
``The President may at any time, in the discretion of the
President, transfer to the Secretary any right, interest, or
title held by the United States in any land acquired in the
program of national defense and no longer needed for that
purpose that the President finds suitable for the purposes of
this title, and the Secretary shall dispose of the
transferred land in the manner and subject to the terms and
conditions of this title.
``SEC. 3914. COMPETITIVE SOURCING LIMITATIONS.
``The Secretary may not complete a study of, or enter into
a contract with a private party to carry out, without
specific authorization in a subsequent Act of Congress, a
competitive sourcing activity of the Secretary, including
support personnel of the Department, relating to rural
development or farmer program loans.
``SEC. 3915. REGULATIONS.
``The Secretary may issue such regulations, prescribe such
terms and conditions for making or guaranteeing loans,
security instruments, and agreements, except as otherwise
specified in this title, and make such delegations of
authority as the Secretary considers necessary to carry out
this title.''.
SEC. 6002. CONFORMING AMENDMENTS.
(a) Section 17(c) of the Rural Electrification Act of 1936
(7 U.S.C. 917(c)) is amended by striking paragraph (1) and
inserting the following:
``(1) Subtitle B of the Consolidated Farm and Rural
Development Act.''.
(b) Section 305(c)(2)(B)(i)(I) of the Rural Electrification
Act of 1936 (7 U.S.C. 935(c)(2)(B)(i)(I)) is amended by
striking ``section 307(a)(3)(A) of the Consolidated Farm and
Rural Development Act (7 U.S.C. 1927(a)(3)(A))'' and
inserting ``section 3701(b)(2) of the Consolidated Farm and
Rural Development Act''.
(c) Section 306F(a)(1) of the Rural Electrification Act of
1936 (7 U.S.C. 936f(a)(1)) is amended by striking
subparagraph (B) and inserting the following:
``(B) chapter 1 of subtitle B of the Consolidated Farm and
Rural Development Act.''.
(d) Section 2333(d) of the Food, Agriculture, Conservation,
and Trade Act of 1990 (7 U.S.C. 950aaa 2(d)) is amended--
(1) in paragraph (11), by adding ``and'' at the end;
(2) by striking paragraph (12); and
(3) by redesignating paragraph (13) as paragraph (12).
(e) Section 601(b) of the Rural Electrification Act of 1936
(7 U.S.C. 950bb(b)) is amended by striking paragraph (3).
(f) Section 602(5) of the Emergency Livestock Feed
Assistance Act of 1988 (7 U.S.C. 1471(5)) is amended by
striking ``section 355(e)(1)(D)(ii) of the Consolidated Farm
and Rural Development Act (7 U.S.C. 1985(e)(1)(D)(ii))'' and
inserting ``section 3409(c)(1)(A) of the Consolidated Farm
and Rural Development Act)''.
(g) Section 508 of the Federal Crop Insurance Act (7 U.S.C.
1508) is amended--
(1) in subsection (b)(7)(A), by striking ``section 371 of
the Consolidated Farm and Rural Development Act (7 U.S.C.
2008f)'' and inserting ``section 3424 of the Consolidated
Farm and Rural Development Act''; and
(2) in subsection (n)(2), by striking ``subtitle C of the
Consolidated Farm and Rural Development Act (7 U.S.C. 1961 et
seq.)'' and inserting ``chapter 3 of subtitle A of the
Consolidated Farm and Rural Development Act''.
(h) Section 231(a) of the Agricultural Risk Protection Act
of 2000 (7 U.S.C. 1632a(a)) is amended--
(1) in paragraph (1), by striking ``section 343(a) of the
Consolidated Farm and Rural Development Act (7 U.S.C.
1991(a))'' and inserting ``section 3002 of the Consolidated
Farm and Rural Development Act''; and
(2) in paragraph (4), by striking ``section 355(e) of the
Consolidated Farm and Rural Development Act (7 U.S.C.
2003(e))'' and inserting ``section 3002 of the Consolidated
Farm and Rural Development Act''.
(i) Section 14204(a) of the Food, Conservation, and Energy
Act of 2008 (7 U.S.C. 2008q 1(a)) is amended by striking ``an
entity described in section 379C(a) of the Consolidated Farm
and Rural Development Act (7 U.S.C. 2008q(a))'' and inserting
``an entity determined by the Secretary''.
(j) Section 607(c)(6) of the Rural Development Policy Act
of 1972 (7 U.S.C. 2204b(c)(6)) is amended in the last
sentence--
(1) by striking ``, and'' and inserting ``and any''; and
(2) by striking ``required under section 306(a)(12) of the
Consolidated Farm and Rural Development Act''.
(k) Section 901(b) of the Agricultural Act of 1970 (7
U.S.C. 2204b 1(b)) is amended by striking ``rural areas as
defined in the private business enterprise exception in
section 306(a)(7) of the Consolidated Farmers Home
Administration Act of 1961, as amended (7 U.S.C. 1926)'' and
inserting ``rural areas, as defined in section 3002 of the
Consolidated Farm and Rural Development Act''.
(l) Section 14220 of the Food, Conservation, and Energy Act
of 2008 (7 U.S.C. 2206b) is amended by striking ``section
343(a)(13)(A) of the Consolidated Farm and Rural Development
Act)'' and inserting ``section 3002 of the Consolidated Farm
and Rural Development Act)''.
(m) Section 2501(c)(2)(D) of the Food, Agriculture,
Conservation, and Trade Act of 1990 (7 U.S.C. 2279(c)(2)(D))
is amended by striking ``sections 355(a)(1) and 355(c) of the
Consolidated Farm and Rural Development Act (7 U.S.C.
2003(a)(1))'' and inserting ``paragraphs (1) and (3) of
section 3416(a) of the Consolidated Farm and Rural
Development Act''.
(n) Section 2501A(b) of the Food, Agriculture,
Conservation, and Trade Act of 1990 (7 U.S.C. 2279 1(b)) is
amended by striking ``section 355(e) of the Consolidated Farm
and Rural Development Act (7 U.S.C. 2003(e))'' and inserting
``section 3002 of the Consolidated Farm and Rural Development
Act''.
(o) Section 7405(c)(8)(B) of the Farm Security and Rural
Investment Act of 2002 (7 U.S.C. 3319f(c)(8)(B)) is amended
by striking ``section 355(e) of the Consolidated Farm and
Rural Development Act (7 U.S.C. 2003(e))'' and inserting
``section 3002 of the Consolidated Farm and Rural Development
Act)''.
(p) Section 1101(d)(2)(A) of the Food, Conservation, and
Energy Act of 2008 (7 U.S.C. 8711(d)(2)(A)) is amended by
striking ``section 355(e) of the Consolidated Farm and Rural
Development Act (7 U.S.C. 2003(e))'' and inserting ``section
3002 of the Consolidated Farm and Rural Development Act)''.
(q) Section 1302(d)(2)(A) of the Food, Conservation, and
Energy Act of 2008 (7 U.S.C. 8752(d)(2)(A)) is amended by
striking ``section 355(e) of the Consolidated Farm and Rural
Development Act (7 U.S.C. 2003(e))'' and inserting ``section
3002 of the Consolidated Farm and Rural Development Act)''.
(r) Section 2375(g) of the Food, Agriculture, Conservation,
and Trade Act of 1990 (7 U.S.C. 6613(g)) is amended by
striking ``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))'' and inserting ``subtitle B
of the Consolidated Farm and Rural Development Act''.
(s) Section 226B(a)(1) of the Department of Agriculture
Reorganization Act of 1994 (7 U.S.C. 6934(a)(1)) is amended
by striking ``section 343(a) of the Consolidated Farm and
Rural Development Act (7 U.S.C. 1991(a))'' and inserting
``section 3002 of the Consolidated Farm and Rural Development
Act''.
(t) Section 196(i)(3)(B) of the Federal Agriculture
Improvement and Reform Act of 1996 (7 U.S.C. 7333(i)(3)(B))
is amended by striking ``subtitle C of the Consolidated Farm
and Rural Development Act (7 U.S.C. 1961 et seq.)'' and
inserting ``chapter 3 of subtitle A of the Consolidated Farm
and Rural Development Act''.
(u) Section 9009(a)(1) of the Farm Security and Rural
Investment Act of 2002 (7 U.S.C. 8109(a)(1)) is amended by
striking ``section 343(a)(13)(A) of the Consolidated Farm and
Rural Development Act (7 U.S.C. 1991(a)(13)(A)))'' and
inserting ``section 3002 of the Consolidated Farm and Rural
Development Act''.
(v) Section 9011(c)(2)(B)(v) of the Farm Security and Rural
Investment Act of 2002 (7 U.S.C. 8111(c)(2)(B)(v)) is amended
by striking subclause (I)and inserting the following:
``(I) beginning farmers (as defined in accordance with
section 3002 of the Consolidated Farm and Rural Development
Act); or''.
(w) Section 7(b)(2)(B) of the Small Business Act (15 U.S.C.
636(b)(2)(B)) is amended by striking ``section 321 of the
Consolidated Farm and Rural Development Act (7 U.S.C. 1961)''
and inserting ``section 3301 of the Consolidated Farm and
Rural Development Act''.
(x) Section 8(b)(5)(B)(iii)(III)(bb) of the Soil
Conservation and Domestic Allotment Act (16 U.S.C.
590h(b)(5)(B)(iii)(III)(bb)) is amended by striking ``section
355(e)(1) of the Consolidated Farm and Rural Development Act
(7 U.S.C.A. Sec. 2003(e)(1))'' and inserting ``section 3002
of the Consolidated Farm and Rural Development Act)''.
(y) Section 10(b)(3) of the Cooperative Forestry Assistance
Act of 1978 (16 U.S.C. 2106(b)(3)) is amended in the last
sentence by striking ``set out in the first clause of section
306(a)(7) of the Consolidated Farm and
[[Page S4076]]
Rural Development Act'' and inserting ``given the term in
section 3002 of the Consolidated Farm and Rural Development
Act''.
(z) Section 1201(a)(2) of the Food Security Act of 1985 (16
U.S.C. 3801(a)(2)) is amended by striking ``section 343(a)(8)
of the Consolidated Farm and Rural Development Act (7 U.S.C.
1991(a)(8))'' and inserting ``section 3002 of the
Consolidated Farm and Rural Development Act''.
(aa) Section 1238(2) of the Food Security Act of 1985 (16
U.S.C. 3838(2)) is amended by striking ``section 343(a) of
the Consolidated Farm and Rural Development Act (7 U.S.C.
1991(a))'' and inserting ``section 3002 of the Consolidated
Farm and Rural Development Act''.
(bb) The first section of Public Law 91 229 (25 U.S.C. 488)
is amended in subsection (a) by striking ``make loans from
the Farmers Home Administration Direct Loan Account created
by section 338(c), and to make and insure loans as provided
in sections 308 and 309, of the Consolidated Farmers Home
Administration Act of 1961, as amended (7 U.S.C. 1988(c),
1928, 1929),'' and inserting ``make loans under chapter 1 of
subtitle A of the Consolidated Farm and Rural Development
Act''.
(cc) Section 5 of Public Law 91 229 (25 U.S.C. 492) is
amended by striking ``section 307(a)(3)(B) of the
Consolidated Farmers Home Administration Act of 1961, as
amended, and to the provisions of subtitle D of that Act
except sections 340, 341, 342, and 343'' and inserting
``3105(b)(2) of the Consolidated Farm and Rural Development
Act''.
(dd) Section 6(c) of Public Law 91 229 (25 U.S.C. 493(c))
is amended by striking ``section 333B of the Consolidated
Farm and Rural Development Act (7 U.S.C. 1983b)'' and
inserting ``subtitle H of the Department of Agriculture
Reorganization Act of 1994 (7 U.S.C. 6991 et seq.)''.
(ee) Section 181(a)(2)(B)(ii) of the Internal Revenue Code
of 1986 is amended by striking ``section 2009aa 1 of title 7,
United States Code'' and inserting ``section 3801 of the
Consolidated Farm and Rural Development Act''.
(ff) Section 515(b)(3) of the Housing Act of 1949 (42
U.S.C. 1485(b)(3)) is amended by striking ``all the
provisions of section 309 and the second and third sentences
of section 308 of the Consolidated Farmers Home
Administration Act of 1961, including the authority in
section 309(f)(1) of that Act'' and inserting ``section 3401
of the Consolidated Farm and Rural Development Act''.
(gg) Section 517(b) of the Housing Act of 1949 (42 U.S.C.
1487(b)) is amended in the third sentence by striking ``(7
U.S.C. 1929)'' and inserting ``under section 3401 of the
Consolidated Farm and Rural Development Act''.
(hh) Section 3(8) of the Public Works and Economic
Development Act of 1965 (42 U.S.C. 3122(8)) is amended--
(1) by striking subparagraph (B) and inserting the
following:
``(B) the Delta Regional Authority established under
chapter 4 of subtitle B of the Consolidated Farm and Rural
Development Act;''; and
(2) by striking subparagraph (D) and inserting the
following:
``(D) the Northern Great Plains Regional Authority
established under chapter 5 of subtitle B of the Consolidated
Farm and Rural Development Act.''.
(ii) Section 310(a) of the Robert T. Stafford Disaster
Relief and Emergency Assistance Act (42 U.S.C. 5153(a)) is
amended by striking paragraph (4) and inserting the
following:
``(4) Chapter 1 of subtitle B of the Consolidated Farm and
Rural Development Act.''.
(jj) Section 582(d)(1) of the National Flood Insurance
Reform Act of 1994 (42 U.S.C. 5154a(d)(1)) is amended by
striking ``section 321(a) of the Consolidated Farm and Rural
Development Act (7 U.S.C. 1961(a))'' and inserting ``section
3301(b) of the Consolidated Farm and Rural Development Act''.
(kk) Section 213(c)(1) of the Biomass Energy and Alcohol
Fuels Act of 1980 (42 U.S.C. 8813(c)(1)) is amended in the
first sentence by striking ``section 309 of the Consolidated
Farm and Rural Development Act or the Rural Development
Insurance Fund in section 309A of such Act'' and inserting
``under section 3401 of the Consolidated Farm and Rural
Development Act or the Rural Development Insurance Fund under
section 3704 of that Act''.
(ll) Section 1323(b)(2) of the Food Security Act of 1985
(Public Law 99 198; 7 U.S.C. 1932 note) is amended--
(1) in subparagraph (A), by inserting ``and'' at the end;
(2) in subparagraph (B), by striking ``; and'' at the end
and inserting a period; and
(3) by striking subparagraph (C).
Subtitle B--Rural Electrification
SEC. 6101. DEFINITION OF RURAL AREA.
Section 13(3) of the Rural Electrification Act of 1936 (7
U.S.C. 913(A)) is amended by striking subparagraph (A) and
inserting the following:
``(A) any area described in section 3002(28)(A)(i) of the
Consolidated Farm and Rural Development Act; and''.
SEC. 6102. GUARANTEES FOR BONDS AND NOTES ISSUED FOR
ELECTRIFICATION OR TELEPHONE PURPOSES.
Section 313A(f) of the Rural Electrification Act of 1936 (7
U.S.C. 940c 1(f)) is amended by striking ``2012'' and
inserting ``2017''.
SEC. 6103. EXPANSION OF 911 ACCESS.
Section 315(d) of the Rural Electrification Act of 1936 (7
U.S.C. 940e(d)) is amended by striking ``2012'' and inserting
``2017''.
SEC. 6104. ACCESS TO BROADBAND TELECOMMUNICATIONS SERVICES IN
RURAL AREAS.
Section 601 of the Rural Electrification Act of 1936 (7
U.S.C. 950bb) is amended--
(1) in subsection (a), by striking ``loans and'' and
inserting ``grants, loans, and'';
(2) in subsection (b), by striking paragraph (3) and
inserting the following:
``(3) Rural area.--The term `rural area' means any area
described in section 3002 of the Consolidated Farm and Rural
Development Act.'';
(3) in subsection (c)--
(A) in the subsection heading, by striking ``Loans and''
and inserting ``Grants, Loans, and'';
(B) in paragraph (1), by inserting ``make grants and''
after ``Secretary shall'';
(C) by striking paragraph (2) and inserting the following:
``(2) Priority.--
``(A) In general.--In making grants or guaranteeing loans
under paragraph (1), the Secretary shall give the highest
priority to applicants that offer to provide broadband
service to the greatest proportion of households that, prior
to the provision of the broadband service, had no incumbent
service provider.
``(B) Other.--After giving priority to the applicants
described in subparagraph (A), the Secretary shall then give
priority to projects that serve rural communities--
``(i) with a population of less than 20,000 permanent
residents;
``(ii) experiencing outmigration;
``(iii) with a high percentage of low-income residents; and
``(iv) that are isolated from other significant population
centers.''; and
(D) by adding at the end the following:
``(3) Grant amounts.--
``(A) Eligibility.--To be eligible for a grant under this
section, the project that is the subject of the grant shall
be carried out in a rural area.
``(B) Maximum.--Except as provided in subparagraph (D), the
amount of any grant made under this section shall not exceed
50 percent of the development costs of the project for which
the grant is provided.
``(C) Grant rate.--The Secretary shall establish the grant
rate for each project in accordance with regulations issued
by the Secretary that shall provide for a graduated scale of
grant rates that establish higher rates for projects in
communities that have--
``(i) remote locations;
``(ii) low community populations;
``(iii) low income levels; and
``(iv) developed the applications of the communities with
the participation of combinations of stakeholders,
including--
``(I) State, local, and tribal governments;
``(II) nonprofit institutions;
``(III) institutions of higher education;
``(IV) private entities; and
``(V) philanthropic organizations.
``(D) Secretarial authority to adjust.--The Secretary may
make grants of up to 75 percent of the development costs of
the project for which the grant is provided to an eligible
entity if the Secretary determines that the project serves a
remote or low income area that does not have access to
broadband service from any provider of broadband service
(including the applicant).'';
(4) in subsection (d)--
(A) in paragraph (1)(A)--
(i) in the matter preceding clause (i), by striking ``loan
or'' and inserting ``grant, loan, or'';
(ii) in clause (ii), by striking ``a loan application'' and
inserting ``an application''; and
(iii) in clause (iii)--
(I) by striking ``the loan application'' and inserting
``the application''; and
(II) by striking ``proceeds from the loan made or
guaranteed under this section are'' and inserting
``assistance under this section is'';
(B) in paragraph (2)(A), in the matter preceding clause
(i)--
(i) by striking ``the proceeds of a loan made or
guaranteed'' and inserting ``assistance''; and
(ii) by striking ``for the loan or loan guarantee'' and
inserting ``of the eligible entity'';
(C) by striking ``loan or'' each place it appears in
paragraphs (2)(B), (3)(A), (4), (5), and (6) and inserting
``grant, loan, or'';
(D) in paragraph (7), by striking ``a loan application''
and inserting ``an application''; and
(E) by adding at the end the following:
``(8) Transparency and reporting.--The Secretary--
``(A) shall require any entity receiving assistance under
this section to submit quarterly, in a format specified by
the Secretary, a report that describes--
``(i) the use by the entity of the assistance; and
``(ii) the progress towards fulfilling the objectives for
which the assistance was granted;
``(B) shall maintain a fully searchable database,
accessible on the Internet at no cost to the public, that
contains, at a minimum--
``(i) a list of each entity that has applied for assistance
under this section;
``(ii) a description of each application, including the
status of each application;
``(iii) for each entity receiving assistance under this
section--
``(I) the name of the entity;
``(II) the type of assistance being received;
``(III) the purpose for which the entity is receiving the
assistance; and
[[Page S4077]]
``(IV) each quarterly report submitted under subparagraph
(A); and
``(iv) such other information as is sufficient to allow the
public to understand and monitor assistance provided under
this section;
``(C) may, in addition to other authority under applicable
law, deobligate awards to grantees that demonstrate an
insufficient level of performance, or wasteful or fraudulent
spending, as defined in advance by the Secretary, and award
those funds competitively to new or existing applicants
consistent with this section; and
``(D) may establish additional reporting and information
requirements for any recipient of any assistance under this
section so as to ensure compliance with this section.'';
(5) in subsection (f), by striking ``make a loan or loan
guarantee'' and inserting ``provide assistance'';
(6) in subsection (j)--
(A) in the matter preceding paragraph (1), by striking
``loan and loan guarantee'';
(B) in paragraph (1), by inserting ``grants and'' after
``number of'';
(C) in paragraph (2)--
(i) in subparagraph (A), by striking ``loan''; and
(ii) in subparagraph (B), by striking ``loans and'' and
inserting ``grants, loans, and''; and
(D) in paragraph (3), by striking ``loan'';
(7) in subsection (k)(1)--
(A) by striking ``$25,000,000'' and inserting
``$50,000,000''; and
(B) by striking ``2012'' and inserting ``2017''; and
(8) in subsection (l)--
(A) by striking ``loan or'' and inserting ``grant, loan,
or''; and
(B) by striking ``2012'' and inserting ``2017''.
Subtitle C--Miscellaneous
SEC. 6201. DISTANCE LEARNING AND TELEMEDICINE.
(a) Authorization of Appropriations.--Section 2335A of the
Food, Agriculture, Conservation, and Trade Act of 1990 (7
U.S.C. 950aaa-5) is amended by striking ``2012'' and
inserting ``2017''.
(b) Conforming Amendment.--Section 1(b) of Public Law 102
551 (7 U.S.C. 950aaa note) is amended by striking ``2012''
and inserting ``2017''.
SEC. 6202. RURAL ENERGY SAVINGS PROGRAM.
Subtitle E of title VI of the Farm Security and Rural
Investment Act of 2002 (Public Law 107 171; 116 Stat. 424) is
amended by adding at the end the following:
``SEC. 6407. RURAL ENERGY SAVINGS PROGRAM.
``(a) Purpose.--The purpose of this section is to create
jobs, promote rural development, and help rural families and
small businesses achieve cost savings by providing loans to
qualified consumers to implement durable cost-effective
energy efficiency measures.
``(b) Definitions.--In this section:
``(1) Eligible entity.--The term `eligible entity' means--
``(A) any public power district, public utility district,
or similar entity, or any electric cooperative described in
section 501(c)(12) or 1381(a)(2) of the Internal Revenue Code
of 1986, that borrowed and repaid, prepaid, or is paying an
electric loan made or guaranteed by the Rural Utilities
Service (or any predecessor agency);
``(B) any entity primarily owned or controlled by 1 or more
entities described in subparagraph (A); or
``(C) any other entity that is an eligible borrower of the
Rural Utility Service, as determined under section 1710.101
of title 7, Code of Federal Regulations (or a successor
regulation).
``(2) Energy efficiency measures.--The term `energy
efficiency measures' means, for or at property served by an
eligible entity, structural improvements and investments in
cost-effective, commercial technologies to increase energy
efficiency.
``(3) Qualified consumer.--The term `qualified consumer'
means a consumer served by an eligible entity that has the
ability to repay a loan made under subsection (d), as
determined by the eligible entity.
``(4) Secretary.--The term `Secretary' means the Secretary
of Agriculture, acting through the Administrator of the Rural
Utilities Service.
``(c) Loans to Eligible Entities.--
``(1) In general.--Subject to paragraph (2), the Secretary
shall make loans to eligible entities that agree to use the
loan funds to make loans to qualified consumers for the
purpose of implementing energy efficiency measures.
``(2) Requirements.--
``(A) In general.--As a condition of receiving a loan under
this subsection, an eligible entity shall--
``(i) establish a list of energy efficiency measures that
is expected to decrease energy use or costs of qualified
consumers;
``(ii) prepare an implementation plan for use of the loan
funds, including use of any interest to be received pursuant
to subsection (d)(1)(A);
``(iii) provide for appropriate measurement and
verification to ensure--
``(I) the effectiveness of the energy efficiency loans made
by the eligible entity; and
``(II) that there is no conflict of interest in carrying
out this section; and
``(iv) demonstrate expertise in effective use of energy
efficiency measures at an appropriate scale.
``(B) Revision of list of energy efficiency measures.--
Subject to the approval of the Secretary, an eligible entity
may update the list required under subparagraph (A)(i) to
account for newly available efficiency technologies.
``(C) Existing energy efficiency programs.--An eligible
entity that, at any time before the date that is 60 days
after the date of enactment of this section, has established
an energy efficiency program for qualified consumers may use
an existing list of energy efficiency measures,
implementation plan, or measurement and verification system
of that program to satisfy the requirements of subparagraph
(A) if the Secretary determines the list, plan, or systems
are consistent with the purposes of this section.
``(3) No interest.--A loan under this subsection shall bear
no interest.
``(4) Repayment.--With respect to a loan under paragraph
(1)--
``(A) the term shall not exceed 20 years from the date on
which the loan is closed; and
``(B) except as provided in paragraph (6), the repayment of
each advance shall be amortized for a period not to exceed 10
years.
``(5) Amount of advances.--Any advance of loan funds to an
eligible entity in any single year shall not exceed 50
percent of the approved loan amount.
``(6) Special advance for start-up activities.--
``(A) In general.--In order to assist an eligible entity in
defraying the appropriate start-up costs (as determined by
the Secretary) of establishing new programs or modifying
existing programs to carry out subsection (d), the Secretary
shall allow an eligible entity to request a special advance.
``(B) Amount.--No eligible entity may receive a special
advance under this paragraph for an amount that is greater
than 4 percent of the loan amount received by the eligible
entity under paragraph (1).
``(C) Repayment.--Repayment of the special advance--
``(i) shall be required during the 10-year period beginning
on the date on which the special advance is made; and
``(ii) at the election of the eligible entity, may be
deferred to the end of the 10-year period.
``(7) Limitation.--All special advances shall be made under
a loan described in paragraph (1) during the first 10 years
of the term of the loan.
``(d) Loans to Qualified Consumers.--
``(1) Terms of loans.--Loans made by an eligible entity to
qualified consumers using loan funds provided by the
Secretary under subsection (c)--
``(A) may bear interest, not to exceed 3 percent, to be
used for purposes that include--
``(i) to establish a loan loss reserve; and
``(ii) to offset personnel and program costs of eligible
entities to provide the loans;
``(B) shall finance energy efficiency measures for the
purpose of decreasing energy usage or costs of the qualified
consumer by an amount that ensures, to the maximum extent
practicable, that a loan term of not more than 10 years will
not pose an undue financial burden on the qualified consumer,
as determined by the eligible entity;
``(C) shall not be used to fund purchases of, or
modifications to, personal property unless the personal
property is or becomes attached to real property (including a
manufactured home) as a fixture;
``(D) shall be repaid through charges added to the electric
bill for the property for, or at which, energy efficiency
measures are or will be implemented, on the condition that
this requirement does not prohibit--
``(i) the voluntary prepayment of a loan by the owner of
the property; or
``(ii) the use of any additional repayment mechanisms that
are--
``(I) demonstrated to have appropriate risk mitigation
features, as determined by the eligible entity; or
``(II) required if the qualified consumer is no longer a
customer of the eligible entity; and
``(E) shall require an energy audit by an eligible entity
to determine the impact of proposed energy efficiency
measures on the energy costs and consumption of the qualified
consumer.
``(2) Contractors.--In addition to any other qualified
general contractor, eligible entities may serve as general
contractors.
``(e) Contract for Measurement and Verification, Training,
and Technical Assistance.--
``(1) In general.--Not later than 90 days after the date of
enactment of this section, the Secretary--
``(A) shall establish a plan for measurement and
verification, training, and technical assistance of the
program; and
``(B) may enter into 1 or more contracts with a qualified
entity for the purposes of--
``(i) providing measurement and verification activities;
and
``(ii) developing a program to provide technical assistance
and training to the employees of eligible entities to carry
out this section.
``(2) Use of subcontractors authorized.--A qualified entity
that enters into a contract under paragraph (1) may use
subcontractors to assist the qualified entity in carrying out
the contract.
``(f) Fast Start Demonstration Projects.--
``(1) In general.--The Secretary shall offer to enter into
agreements with eligible entities (or groups of eligible
entities) that have energy efficiency programs described in
subsection (c)(2)(C) to establish an energy efficiency loan
demonstration projects consistent with the purposes of this
section.
[[Page S4078]]
``(2) Evaluation criteria.--In determining which eligible
entities to award loans under this section, the Secretary
shall take into consideration eligible entities that--
``(A) implement approaches to energy audits and investments
in energy efficiency measures that yield measurable and
predictable savings;
``(B) use measurement and verification processes to
determine the effectiveness of energy efficiency loans made
by eligible entities;
``(C) include training for employees of eligible entities,
including any contractors of such entities, to implement or
oversee the activities described in subparagraphs (A) and
(B);
``(D) provide for the participation of a majority of
eligible entities in a State;
``(E) reduce the need for generating capacity;
``(F) provide efficiency loans to--
``(i) in the case of a single eligible entity, not fewer
than 20,000 consumers; or
``(ii) in the case of a group of eligible entities, not
fewer than 80,000 consumers; and
``(G) serve areas in which, as determined by the Secretary,
a large percentage of consumers reside--
``(i) in manufactured homes; or
``(ii) in housing units that are more than 50 years old.
``(3) Deadline for implementation.--To the maximum extent
practicable, the Secretary shall enter into agreements
described in paragraph (1) by not later than 90 days after
the date of enactment of this section.
``(4) Effect on availability of loans nationally.--Nothing
in this subsection shall delay the availability of loans to
eligible entities on a national basis beginning not later
than 180 days after the date of enactment of this section.
``(5) Additional demonstration project authority.--
``(A) In general.--The Secretary may conduct demonstration
projects in addition to the project required by paragraph
(1).
``(B) Inapplicability of certain criteria.--The additional
demonstration projects may be carried out without regard to
subparagraphs (D), (F), or (G) of paragraph (2).
``(g) Additional Authority.--The authority provided in this
section is in addition to any other authority of the
Secretary to offer loans under any other law.
``(h) Effective Period.--Subject to the availability of
funds and except as otherwise provided in this section, the
loans and other expenditures required to be made under this
section shall be available until expended, with the Secretary
authorized to make new loans as loans are repaid.
``(i) Regulations.--
``(1) In general.--Except as otherwise provided in this
subsection, not later than 180 days after the date of
enactment of this section, the Secretary shall promulgate
such regulations as are necessary to implement this section.
``(2) Procedure.--The promulgation of the regulations and
administration of this section shall be made without regard
to--
``(A) the Statement of Policy of the Secretary of
Agriculture effective July 24, 1971 (36 Fed. Reg. 13804),
relating to notices of proposed rulemaking and public
participation in rulemaking; and
``(B) chapter 35 of title 44, United States Code (commonly
known as the `Paperwork Reduction Act').
``(3) Congressional review of agency rulemaking.--In
carrying out this section, the Secretary shall use the
authority provided under section 808 of title 5, United
States Code.
``(4) Interim regulations.--Notwithstanding paragraphs (1)
and (2), to the extent regulations are necessary to carry out
any provision of this section, the Secretary shall implement
such regulations through the promulgation of an interim
rule.''.
TITLE VII--RESEARCH, EXTENSION, AND RELATED MATTERS
Subtitle A--National Agricultural Research, Extension, and Teaching
Policy Act of 1977
SEC. 7101. NATIONAL AGRICULTURAL RESEARCH, EXTENSION,
EDUCATION, AND ECONOMICS ADVISORY BOARD.
(a) Authorization of Appropriations.--Section 1408(h) of
the National Agricultural Research, Extension, and Teaching
Policy Act of 1977 (7 U.S.C. 3123(h)) is amended by striking
``2012'' and inserting ``2017''.
(b) Duties of National Agricultural Research, Extension,
Education, and Economics Advisory Board.--Section 1408(c) of
the National Agricultural Research, Extension, and Teaching
Policy Act of 1977 (7 U.S.C. 3123(c)) is amended--
(1) in paragraph (3), by striking ``and'' at the end;
(2) in paragraph (4)(C), by striking the period at the end
and inserting ``; and''; and
(3) by adding at the end the following:
``(5) consult with industry groups on agricultural
research, extension, education, and economics, and make
recommendations to the Secretary based on that
consultation.''.
SEC. 7102. SPECIALTY CROP COMMITTEE.
Section 1408A of the National Agricultural Research,
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3123a)
is amended--
(1) in subsection (b)--
(A) by striking ``Individuals'' and inserting the
following:
``(1) Eligibility.--Individuals'';
(B) by striking ``Members'' and inserting the following:
``(2) Service.--Members''; and
(C) by adding at the end the following:
``(3) Diversity.--Membership of the specialty crops
committee shall reflect diversity in the specialty crops
represented.'';
(2) in subsection (c), by adding at the end the following:
``(6) Analysis of alignment of specialty crop committee
recommendations with specialty crop research initiative
grants awarded under section 412(d) of the Agricultural
Research, Extension, and Education Reform Act of 1998 (7
U.S.C. 7632).'';
(3) by redesignating subsections (d) and (e) as subsections
(e) and (f), respectively;
(4) by inserting after subsection (c) the following:
``(d) Consultation With Specialty Crop Industry.--In
studying the scope and effectiveness of programs under
subsection (a), the specialty crops committee shall consult
on an ongoing basis with diverse sectors of the specialty
crop industry.''; and
(5) in subsection (f) (as redesignated by paragraph (3)),
by striking ``subsection (d)'' and inserting ``subsection
(e)''.
SEC. 7103. VETERINARY SERVICES GRANT PROGRAM.
The National Agricultural Research, Extension, and Teaching
Policy Act of 1977 is amended by inserting after section
1415A (7 U.S.C. 3151a) the following:
``SEC. 1415B. VETERINARY SERVICES GRANT PROGRAM.
``(a) Definitions.--In this section:
``(1) Qualified entity.--The term `qualified entity'
means--
``(A) a for-profit or nonprofit entity located in the
United States that operates a veterinary clinic providing
veterinary services--
``(i) in a rural area, as defined in section 343(a) of the
Consolidated Farm and Rural Development Act (7 U.S.C.
1991(a)); and
``(ii) in response to a veterinarian shortage situation;
``(B) a State, national, allied, or regional veterinary
organization or specialty board recognized by the American
Veterinary Medical Association;
``(C) a college or school of veterinary medicine accredited
by the American Veterinary Medical Association;
``(D) a university research foundation or veterinary
medical foundation;
``(E) a department of veterinary science or department of
comparative medicine accredited by the Department of
Education;
``(F) a State agricultural experiment station; and
``(G) a State, local, or tribal government agency.
``(2) Veterinarian shortage situation.--The term
`veterinarian shortage situation' means a veterinarian
shortage situation determined by the Secretary under section
1415A(b).
``(b) Establishment of Program.--
``(1) Competitive grants.--The Secretary shall carry out a
program to make competitive grants to qualified entities that
carry out programs or activities described in paragraph (2)
for the purpose of developing, implementing, and sustaining
veterinary services.
``(2) Eligibility requirements.--To be eligible to receive
a grant described in paragraph (1), a qualified entity shall
carry out programs or activities that the Secretary
determines will--
``(A) substantially relieve veterinarian shortage
situations;
``(B) support or facilitate private veterinary practices
engaged in public health activities; or
``(C) support or facilitate the practices of veterinarians
who are participating in or have successfully completed a
service requirement under section 1415A(a)(2).
``(c) Award Processes and Preferences.--
``(1) Application, evaluation, and input processes.--In
administering the grant program under this section, the
Secretary shall--
``(A) use an appropriate application and evaluation
process, as determined by the Secretary; and
``(B) seek the input of interested persons.
``(2) Grant preferences.--In selecting recipients of grants
to be used for any of the purposes described in paragraphs
(2) through (6) of subsection (d), the Secretary shall give a
preference to qualified entities that provide documentation
of coordination with other qualified entities, with respect
to any such purpose.
``(3) Additional preferences.--In awarding grants under
this section, the Secretary may develop additional
preferences by taking into account the amount of funds
available for grants and the purposes for which the grant
funds will be used.
``(4) Applicability of other provisions.--Sections 1413B,
1462(a), 1469(a)(3), 1469(c), and 1470 apply to the
administration of the grant program under this section.
``(d) Use of Grants to Relieve Veterinarian Shortage
Situations and Support Veterinary Services.--A qualified
entity may use funds provided by grants under this section to
relieve veterinarian shortage situations and support
veterinary services for the following purposes:
``(1) To assist veterinarians with establishing or
expanding practices for the purpose of--
``(A) equipping veterinary offices;
``(B) sharing in the reasonable overhead costs of the
practices, as determined by the Secretary; or
[[Page S4079]]
``(C) establishing mobile veterinary facilities in which a
portion of the facilities will address education or extension
needs.
``(2) To promote recruitment (including for programs in
secondary schools), placement, and retention of
veterinarians, veterinary technicians, students of veterinary
medicine, and students of veterinary technology.
``(3) To allow veterinary students, veterinary interns,
externs, fellows, and residents, and veterinary technician
students to cover expenses (other than the types of expenses
described in 1415A(c)(5)) to attend training programs in food
safety or food animal medicine.
``(4) To establish or expand accredited veterinary
education programs (including faculty recruitment and
retention), veterinary residency and fellowship programs, or
veterinary internship and externship programs carried out in
coordination with accredited colleges of veterinary medicine.
``(5) To assess veterinarian shortage situations and the
preparation of applications submitted to the Secretary for
designation as a veterinarian shortage situation under
section 1415A(b).
``(6) To provide continuing education and extension,
including veterinary telemedicine and other distance-based
education, for veterinarians, veterinary technicians, and
other health professionals needed to strengthen veterinary
programs and enhance food safety.
``(e) Special Requirements for Certain Grants.--
``(1) Terms of service requirements.--
``(A) In general.--Grants provided under this section for
the purpose specified in subsection (d)(1) shall be subject
to an agreement between the Secretary and the grant recipient
that includes a required term of service for the recipient,
as established by the Secretary.
``(B) Considerations.--In establishing a term of service
under subparagraph (A), the Secretary shall consider only--
``(i) the amount of the grant awarded; and
``(ii) the specific purpose of the grant.
``(2) Breach remedies.--
``(A) In general.--An agreement under paragraph (1) shall
provide remedies for any breach of the agreement by the grant
recipient, including repayment or partial repayment of the
grant funds, with interest.
``(B) Waiver.--The Secretary may grant a wavier of the
repayment obligation for breach of contract if the Secretary
determines that the grant recipient demonstrates extreme
hardship or extreme need.
``(C) Treatment of amounts recovered.--Funds recovered
under this paragraph shall--
``(i) be credited to the account available to carry out
this section; and
``(ii) remain available until expended.
``(f) Cost-sharing Requirements.--
``(1) Recipient share.--Subject to paragraph (2), to be
eligible to receive a grant under this section, a qualified
entity shall provide matching non-Federal funds, either in
cash or in-kind support, in an amount equal to not less than
25 percent of the Federal funds provided by the grant.
``(2) Waiver.--The Secretary may establish, by regulation,
conditions under which the cost-sharing requirements of
paragraph (1) may be reduced or waived.
``(g) Prohibition on Use of Grant Funds for Construction.--
Funds made available for grants under this section may not be
used--
``(1) to construct a new building or facility; or
``(2) to acquire, expand, remodel, or alter an existing
building or facility, including site grading and improvement
and architect fees.
``(h) Regulations.--Not later than 1 year after the date of
enactment of this section, the Secretary shall promulgate
regulations to carry out this section.
``(i) Authorization of Appropriations.--There is authorized
to be appropriated to the Secretary to carry out this section
$10,000,000 for fiscal year 2013 and each fiscal year
thereafter, to remain available until expended.''.
SEC. 7104. GRANTS AND FELLOWSHIPS FOR FOOD AND AGRICULTURE
SCIENCES EDUCATION.
Section 1417(m) of the National Agricultural Research,
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3152(m))
is amended by striking ``section $60,000,000'' and all that
follows and inserting the following: ``section--
``(1) $60,000,000 for each of fiscal years 1990 through
2012; and
``(2) $40,000,000 for each of fiscal years 2013 through
2017.''.
SEC. 7105. AGRICULTURAL AND FOOD POLICY RESEARCH CENTERS.
Section 1419A of the National Agricultural Research,
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3155) is
amended--
(1) in the section heading, by inserting ``AGRICULTURAL AND
FOOD'' before ``POLICY'';
(2) in subsection (a), in the matter preceding paragraph
(1)--
(A) by striking ``Secretary may'' and inserting ``Secretary
shall, acting through the Office of the Chief Economist,'';
and
(B) by inserting ``with a history of providing unbiased,
nonpartisan economic analysis to Congress'' after
``subsection (b)'';
(3) in subsection (b), by striking ``other research
institutions'' and all that follows through ``shall be
eligible'' and inserting ``other public research institutions
and organizations shall be eligible'';
(4) in subsection (c)--
(A) in the matter preceding paragraph (1), by inserting ``,
with preference given to policy research centers having
extensive databases, models, and demonstrated experience in
providing Congress with agricultural market projections,
rural development analysis, agricultural policy analysis, and
baseline projections at the farm, multiregional, national,
and international levels,'' after ``with this section''; and
(B) in paragraph (2) by inserting ``applied'' after
``theoretical''; and
(5) by striking subsection (d) and inserting the following:
``
``(d) Authorization of Appropriations.--There is authorized
to be appropriated to carry out this section $5,000,000 for
fiscal year 2012 and each fiscal year thereafter.''.
SEC. 7106. EDUCATION GRANTS TO ALASKA NATIVE SERVING
INSTITUTIONS AND NATIVE HAWAIIAN SERVING
INSTITUTIONS.
Section 1419B of the National Agricultural Research,
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3156) is
amended--
(1) in subsection (a)--
(A) in paragraph (1), by striking ``(or grants without
regard to any requirement for competition)''; and
(B) in paragraph (3), by striking ``2012'' and inserting
``2017''; and
(2) in subsection (b)(1), by striking ``(or grants without
regard to any requirement for competition)''; and
(3) in paragraph (3), by striking ``2012'' and inserting
``2017''.
SEC. 7107. NUTRITION EDUCATION PROGRAM.
Section 1425(f) of the National Agricultural Research,
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3175(f))
is amended by striking ``2012'' and inserting ``2017''.
SEC. 7108. CONTINUING ANIMAL HEALTH AND DISEASE RESEARCH
PROGRAMS.
Section 1433 of the National Agricultural Research,
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3195) is
amended by striking the section designation and heading and
all that follows through subsection (a) and inserting the
following:
``SEC. 1433. APPROPRIATIONS FOR CONTINUING ANIMAL HEALTH AND
DISEASE RESEARCH PROGRAMS.
``(a) Authorization of Appropriations.--
``(1) In general.--There are authorized to be appropriated
to support continuing animal health and disease research
programs at eligible institutions such sums as are necessary,
but not to exceed $25,000,000 for each of fiscal years 1991
through 2017.
``(2) Use of funds.--Funds made available under this
section shall be used--
``(A) to meet the expenses of conducting animal health and
disease research, publishing and disseminating the results of
such research, and contributing to the retirement of
employees subject to the Act of March 4, 1940 (7 U.S.C. 331);
``(B) for administrative planning and direction; and
``(C) to purchase equipment and supplies necessary for
conducting research described in subparagraph (A).''.
SEC. 7109. GRANTS TO UPGRADE AGRICULTURAL AND FOOD SCIENCES
FACILITIES AT 1890 LAND-GRANT COLLEGES,
INCLUDING TUSKEGEE UNIVERSITY.
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 ``2012'' and inserting
``2017''.
SEC. 7110. GRANTS TO UPGRADE AGRICULTURAL AND FOOD SCIENCES
FACILITIES AND EQUIPMENT AT INSULAR AREA LAND-
GRANT INSTITUTIONS.
Section 1447B(d) of the National Agricultural Research,
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3222b
2(d)) is amended by striking ``2012'' and inserting ``2017''.
SEC. 7111. HISPANIC-SERVING INSTITUTIONS.
Section 1455(c) of the National Agricultural Research,
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3241(c))
is amended by striking ``2012'' and inserting ``2017''.
SEC. 7112. COMPETITIVE GRANTS FOR INTERNATIONAL AGRICULTURAL
SCIENCE AND EDUCATION PROGRAMS.
Section 1459A of the National Agricultural Research,
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3292b)
is amended by striking subsection (c) and inserting the
following: ``
``(c) Authorization of Appropriations.--There are
authorized to be appropriated to carry out this section--
``(1) such sums as are necessary for each of fiscal years
1999 through 2012; and
``(2) $5,000,000 for each of fiscal years 2013 through
2017.''.
SEC. 7113. UNIVERSITY RESEARCH.
Section 1463 of the National Agricultural Research,
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3311) is
amended in each of subsections (a) and (b) by striking
``2012'' each place it appears and inserting ``2017''.
SEC. 7114. EXTENSION SERVICE.
Section 1464 of the National Agricultural Research,
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3312) is
amended by striking ``2012'' and inserting ``2017''.
SEC. 7115. SUPPLEMENTAL AND ALTERNATIVE CROPS.
(a) Authorization of Appropriations and Termination.--
Section 1473D of the National Agricultural Research,
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3319d)
is amended--
[[Page S4080]]
(1) in subsection (a), by striking ``2012'' and inserting
``2017''; and
(2) by adding at the end the following:
``(e) Authorization of Appropriations.--There are
authorized to be appropriated to carry out this section--
``(1) such sums as are necessary for fiscal year 2012; and
``(2) $1,000,000 for each of fiscal years 2013 through
2017.''.
(b) Competitive Grants.--Section 1473D(c)(1) of the
National Agricultural Research, Extension, and Teaching
Policy Act of 1977 (7 U.S.C. 3319d(c)(1)) is amended by
striking ``use such research funding, special or competitive
grants, or other means, as the Secretary determines,'' and
inserting ``make competitive grants''.
SEC. 7116. CAPACITY BUILDING GRANTS FOR NLGCA INSTITUTIONS.
Section 1473F(b) of the National Agricultural Research,
Extension, and Teaching Policy Act of 1977 (7 U.S.C.
3319i(b)) is amended by striking ``2012'' and inserting
``2017''.
SEC. 7117. AQUACULTURE ASSISTANCE PROGRAMS.
(a) Competitive Grants.--Section 1475(b) of the National
Agricultural Research, Extension, and Teaching Policy Act of
1977 (7 U.S.C. 3322(b)) is amended in the matter preceding
paragraph (1) by inserting ``competitive'' before ``grants''.
(b) Authorization of Appropriations.--Section 1477 of the
National Agricultural Research, Extension, and Teaching
Policy Act of 1977 (7 U.S.C. 3324) is amended to read as
follows: ``
``SEC. 1477. AUTHORIZATION OF APPROPRIATIONS.
``(a) In General.--There are authorized to be appropriated
to carry out this subtitle--
``(1) $7,500,000 for each of fiscal years 1991 through
2012; and
``(2) $5,000,000 for each of fiscal years 2013 through
2017.
``(b) Prohibition on Use.--Funds made available under this
section may not be used to acquire or construct a
building.''.
SEC. 7118. RANGELAND RESEARCH PROGRAMS.
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 ``subtitle'' and all that follows and
inserting the following: ``subtitle--
``(1) $10,000,000 for each of fiscal years 1991 through
2012; and
``(2) $2,000,000 for each of fiscal years 2013 through
2017.''.
SEC. 7119. SPECIAL AUTHORIZATION FOR BIOSECURITY PLANNING AND
RESPONSE.
Section 1484(a) of the National Agricultural Research,
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3351(a))
is amended by striking ``response such sums as are
necessary'' and all that follows and inserting the following:
``response--
``(1) such sums as are necessary for each of fiscal years
2002 through 2012; and
``(2) $20,000,000 for each of fiscal years 2013 through
2017.''.
SEC. 7120. DISTANCE EDUCATION AND RESIDENT INSTRUCTION GRANTS
PROGRAM FOR INSULAR AREA INSTITUTIONS OF HIGHER
EDUCATION.
(a) Distance Education Grants for Insular Areas.--
(1) Competitive grants.--Section 1490(a) of the National
Agricultural Research, Extension, and Teaching Policy Act of
1977 (7 U.S.C. 3362(a)) is amended by striking ``or
noncompetitive''.
(2) Authorization of appropriations.--Section 1490(f) of
the National Agricultural Research, Extension, and Teaching
Policy Act of 1977 (7 U.S.C. 3362(f)) is amended by striking
``section'' and all that follows and inserting the following:
``section--
``(1) such sums as are necessary for each of fiscal years
2002 through 2012; and
``(2) $2,000,000 for each of fiscal years 2013 through
2017.''.
(b) Resident Instruction Grants for Insular Areas.--Section
1491(c) of the National Agricultural Research, Extension, and
Teaching Policy Act of 1977 (7 U.S.C. 3363(c)) is amended by
striking ``such sums as are necessary'' and all that follows
and inserting the following: ``to carry out this section--
``(1) such sums as are necessary for each of fiscal years
2002 through 2012; and
``(2) $2,000,000 for each of fiscal years 2013 through
2017.''.
Subtitle B--Food, Agriculture, Conservation, and Trade Act of 1990
SEC. 7201. BEST UTILIZATION OF BIOLOGICAL APPLICATIONS.
Section 1624 of the Food, Agriculture, Conservation, and
Trade Act of 1990 (7 U.S.C. 5814) is amended--
(1) by striking ``$40,000,000 for each fiscal year''; and
(2) by inserting ``$40,000,000 for each of fiscal years
2012 through 2017'' after ``chapter''.
SEC. 7202. INTEGRATED MANAGEMENT SYSTEMS.
Section 1627 of the Food, Agriculture, Conservation, and
Trade Act of 1990 (7 U.S.C. 5821) is amended by striking
subsection (d) and inserting the following:
``(d) Authorization of Appropriations.--There is authorized
to be appropriated to carry out this section through the
National Institute of Food and Agriculture $20,000,000 for
each of fiscal years 2012 through 2017.''.
SEC. 7203. SUSTAINABLE AGRICULTURE TECHNOLOGY DEVELOPMENT AND
TRANSFER PROGRAM.
Section 1628 of the Food, Agriculture, Conservation, and
Trade Act of 1990 (7 U.S.C. 5831) is amended by striking
subsection (f) and inserting the following:
``(f) Authorization of Appropriations.--There are
authorized to be appropriated to carry out this section such
sums as are necessary for each of fiscal years 2012 through
2017.''.
SEC. 7204. NATIONAL TRAINING PROGRAM.
Section 1629 of the Food, Agriculture, Conservation, and
Trade Act of 1990 (7 U.S.C. 5832) is amended by striking
subsection (i) and inserting the following:
``(i) Authorization of Appropriations.--There is authorized
to be appropriated to carry out the National Training Program
$20,000,000 for each of fiscal years 2012 through 2017.''.
SEC. 7205. NATIONAL GENETICS RESOURCES PROGRAM.
Section 1635(b) of the Food, Agriculture, Conservation, and
Trade Act of 1990 (7 U.S.C. 5844(b)) is amended--
(1) by striking ``such funds as may be necessary''; and
(2) by striking ``subtitle'' and all that follows and
inserting the following: ``subtitle--
``(1) such sums as are necessary for each of fiscal years
1991 through 2012; and
``(2) $1,000,000 for each of fiscal years 2013 through
2017.''.
SEC. 7206. 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 inserting
``and $1,000,000 for each of fiscal years 2013 through 2017''
before the period at the end.
SEC. 7207. HIGH-PRIORITY RESEARCH AND EXTENSION INITIATIVES.
Section 1672 of the Food, Agriculture, Conservation, and
Trade Act of 1990 (7 U.S.C. 5925) is amended--
(1) in the first sentence of subsection (a), by striking
``subsections (e) through (i) of'';
(2) in subsection (b)(2)--
(A) by striking the first sentence and inserting the
following:
``(A) In general.--To facilitate the making of research and
extension grants under subsection (d), the Secretary may
appoint a task force to make recommendations to the
Secretary.''; and
(B) in the second sentence, by striking ``The Secretary may
not incur costs in excess of $1,000 for any fiscal year in
connection with each'' and inserting the following:
``(B) Costs.--The Secretary may not incur costs in excess
of $1,000 for any fiscal year in connection with a'';
(3) in subsection (e)--
(A) by striking paragraphs (1) through (5), (7), (8), (11)
through (39), (41) through (43), (47), (48), (51), and (52);
and
(B) by redesignating paragraphs (6), (9), (10), (40), (44),
(45), (46), (49), and (50) as paragraphs (1), (2), (3), (4),
(5), (6), (7), (8), and (9), respectively;
(4) by striking subsections (f), (g), and (i);
(5) by inserting after subsection (e) the following:
``(f) Pulse Health Initiative.--
``(1) Definitions.--In this subsection;
``(A) Initiative.--The term `Initiative' means the pulse
health initiative established by paragraph (2).
``(B) Pulse.--The term `pulse' means dry beans, dry peas,
lentils, and chickpeas or garbanzo beans.
``(2) Establishment.--Notwithstanding any other provision
of law, during the period beginning on the date of enactment
of the Agriculture Reform, Food, and Jobs Act of 2012 and
ending on September 30, 2017, the Secretary shall carry out a
pulse crop health and extension initiative to address the
critical needs of the pulse crop industry by developing and
disseminating science-based tools and information,
including--
``(A) research in health and nutrition, such as--
``(i) identifying global dietary patterns of pulse crops in
relation to population health;
``(ii) researching pulse crop diets and the ability of the
diets to reduce obesity and associated chronic disease
(including cardiovascular disease, type 2 diabetes, and
cancer); and
``(iii) identifying the underlying mechanisms of the health
benefits of pulse crop consumption (including disease
biomarkers, bioactive components, and relevant plant genetic
components to enhance the health promoting value of pulse
crops);
``(B) research in functionality, such as--
``(i) improving the functional properties of pulse crops
and pulse fractions;
``(ii) developing new and innovative technologies to
improve pulse crops as an ingredient in food products; and
``(iii) developing nutrient-dense food product solutions to
ameliorate chronic disease and enhance food security
worldwide;
``(C) research in sustainability to enhance global food
security, such as--
``(i) plant breeding, genetics and genomics to improve
productivity, nutrient density, and phytonutrient content for
a growing world population;
``(ii) pest and disease management, including resistance to
pests and diseases resulting in reduced application
management strategies; and
``(iii) improving nitrogen fixation to reduce the carbon
and energy footprint of agriculture;
``(D) optimizing pulse cropping systems to reduce water
usage; and
``(E) education and technical service, such as--
``(i) providing technical expertise to help food companies
include nutrient-dense pulse crops in innovative and healthy
foods; and
[[Page S4081]]
``(ii) establishing an educational program to encourage the
consumption and production of pulse crops in the United
States and other countries.
``(3) Eligible entities.--The Secretary may carry out the
Initiative through--
``(A) Federal agencies, including the Agricultural Research
Service and the National Institute of Food and Agriculture;
``(B) National Laboratories;
``(C) institutions of higher education;
``(D) research institutions or organizations;
``(E) private organizations or corporations;
``(F) State agricultural experiment stations;
``(G) individuals; or
``(H) groups consisting of 2 or more entities or
individuals described in subparagraphs (A) through (G).
``(4) Research project grants.--
``(A) In general.--In carrying out this subsection, the
Secretary shall award grants on a competitive basis.
``(B) In general.--The Secretary shall--
``(i) seek and accept proposals for grants;
``(ii) determine the relevance and merit of proposals
through a system of peer review, in consultation with the
pulse crop industry; and
``(iii) award grants on the basis of merit, quality, and
relevance.
``(C) Priorities.--In making grants under this subsection,
the Secretary shall provide a higher priority to projects
that--
``(i) are multistate, multiinstitutional, and
multidisciplinary; and
``(ii) include explicit mechanisms to communicate results
to the pulse crop industry and the public.
``(5) Authorization of appropriations.--There is authorized
to be appropriated to carry out this subsection $25,000,000
for each of fiscal years 2013 through 2017.
``(g) Training Coordination for Food and Agriculture
Protection.--
``(1) In general.--The Secretary shall make grants and
enter into contracts or cooperative agreements with eligible
entities described in paragraph (2) for the purposes of
establishing a Comprehensive Food Safety Training Network.
``(2) Eligibility.--
``(A) In general.--For purposes of this subsection, an
eligible entity is a multiinstitutional consortium that
includes--
``(i) a nonprofit institution that provides administering
food protection training; and
``(ii) 1 or more training centers in institutions of higher
education that have demonstrated expertise in developing and
delivering community-based training in food and agricultural
safety and defense.
``(B) Requirements.--To ensure that coordination and
administration is provided across all the disciplines and
provide comprehensive food protection training, the Secretary
may only consider an entire consortium collectively rather
than on an institution-by-institution basis.
``(C) Membership.--An eligible entity may alter the
consortium membership to meet specific training expertise
needs.
``(3) Duties of eligible entity.--As a condition of the
receipt of assistance under this subsection, an eligible
entity, in cooperation with the Secretary, shall establish
and maintain the network for an internationally integrated
training system to enhance protection of the United States
food supply, including, at a minimum--
``(A) developing curricula and a training network to
provide basic, technical, management, and leadership training
to regulatory and public health officials, producers,
processors, and other agrifood businesses;
``(B) serving as the hub for the administration of an open
training network;
``(C) implementing standards to ensure the delivery of
quality training through a national curricula;
``(D) building and overseeing a nationally recognized
instructor cadre to ensure the availability of highly
qualified instructors;
``(E) reviewing training proposed through the National
Institute of Food and Agriculture and other relevant Federal
agencies that report to the Secretary on the quality and
content of proposed and existing courses;
``(F) assisting Federal agencies in the implementation of
food protection training requirements including requirements
contained in the Agriculture Reform, Food, and Jobs Act of
2012, the FDA Food Safety Modernization Act (Public Law 111
353; 124 Stat. 3885), and amendments made by those Acts; and
``(G) performing evaluation and outcome-based studies to
provide to the Secretary feedback on the effectiveness and
impact of training and metrics on jurisdictions and sectors
within the food safety system.
``(4) Authorization of appropriations.--There is authorized
to be appropriated to carry out this section $20,000,000 for
each of fiscal years 2013 through 2017, to remain available
until expended.'';
(6) in subsection (h), by striking ``2012'' each place it
appears and inserting ``2017'';
(7) by redesignating subsection (j) as subsection (i); and
(8) in subsection (i) (as so redesignated), by striking
``2012'' and inserting ``2017''.
SEC. 7208. ORGANIC AGRICULTURE RESEARCH AND EXTENSION
INITIATIVE.
Section 1672B of the Food, Agriculture, Conservation, and
Trade Act of 1990 (7 U.S.C. 5925b) is amended--
(1) in subsection (a)--
(A) in the matter preceding paragraph (1), by inserting ``,
education,'' after ``support research'';
(B) in paragraph (1), by inserting ``and improvement''
after ``development'';
(C) in paragraph (2), by striking ``to producers and
processors who use organic methods'' and inserting ``of
organic agricultural production and methods to producers,
processors, and rural communities'';
(D) in paragraph (5), by inserting ``and researching
solutions to'' after ``identifying''; and
(E) in paragraph (6), by striking ``and marketing'' and
inserting ``, marketing, and food safety'';
(2) by striking subsection (e);
(3) by redesignating subsection (f) as subsection (e); and
(4) in subsection (e) (as so redesignated)--
(A) in paragraph (1)--
(i) in subparagraph (A), by striking ``and'' at the end;
(ii) in subparagraph (B), by striking the period at the end
and inserting ``; and''; and
(iii) by adding at the end the following:
``(C) $16,000,000 for each of fiscal years 2013 through
2017.''; and
(B) in paragraph (2), by striking ``2012'' and inserting
``2017''.
SEC. 7209. FARM BUSINESS MANAGEMENT.
Section 1672D(d) of the Food, Agriculture, Conservation,
and Trade Act of 1990 (7 U.S.C. 5925f(d)) is amended by
striking ``such sums as are necessary to carry out this
section.'' and inserting the following: ``to carry out this
section--
``(1) such sums as are necessary for fiscal year 2012; and
``(2) $5,000,000 for each of fiscal years 2013 through
2017.''.
SEC. 7210. REGIONAL CENTERS OF EXCELLENCE.
Subtitle H of the Food, Agriculture, Conservation, and
Trade Act of 1990 is amended by inserting after section 1672D
(7 U.S.C. 5925) the following:
``SEC. 1673. REGIONAL CENTERS OF EXCELLENCE.
``(a) Establishment.--The Secretary may prioritize regional
centers of excellence established for specific agricultural
commodities for the receipt of funding.
``(b) Composition.--A regional center of excellence shall
be composed of 1 or more colleges and universities (including
land-grant institutions, schools of forestry, schools of
veterinary medicine, or NLGCA Institutions (as defined in
section 1404 of the National Agricultural Research,
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3103)))
that provide financial support to the regional center of
excellence.
``(c) Criteria for Regional Centers of Excellence.--The
criteria for consideration to be a regional center of
excellence shall include efforts--
``(1) to ensure coordination and cost-effectiveness by
reducing unnecessarily duplicative efforts regarding
research, teaching, and extension;
``(2) to leverage available resources by using public/
private partnerships among agricultural industry groups,
institutions of higher education, and the Federal Government;
``(3) to implement teaching initiatives to increase
awareness and effectively disseminate solutions to target
audiences through extension activities;
``(4) to increase the economic returns to rural communities
by identifying, attracting, and directing funds to high-
priority agricultural issues; and
``(5) to improve teaching capacity and infrastructure at
colleges and universities (including land-grant institutions,
schools of forestry, and schools of veterinary medicine, and
NLGCA Institutions).
``(d) Authorization of Appropriations.--There is authorized
to be appropriated to carry out this section $10,000,000 for
each of fiscal years 2013 through 2017.''.
SEC. 7211. ASSISTIVE TECHNOLOGY PROGRAM FOR FARMERS WITH
DISABILITIES.
Section 1680(c)(1) of the Food, Agriculture, Conservation,
and Trade Act of 1990 (7 U.S.C. 5933(c)(1)) is amended--
(1) by striking ``is'' and inserting ``are''; and
(2) by striking ``section'' and all that follows and
inserting the following: ``section--
``(A) $6,000,000 for each of fiscal years 1999 through
2012; and
``(B) $5,000,000 for each of fiscal years 2013 through
2017.''.
SEC. 7212. 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
``2012'' and inserting ``2017''.
Subtitle C--Agricultural Research, Extension, and Education Reform Act
of 1998
SEC. 7301. RELEVANCE AND MERIT OF AGRICULTURAL RESEARCH,
EXTENSION, AND EDUCATION FUNDED BY THE
DEPARTMENT.
Section 103(a)(2) of the Agricultural Research, Extension,
and Education Reform Act of 1998 (7 U.S.C. 7613(a)(2)) is
amended--
(1) by striking the paragraph designation and heading and
inserting the following:
``(2) Relevance and merit review of research, extension,
and education grants.--'';
(2) in subparagraph (A)--
(A) by inserting ``relevance and'' before ``merit''; and
(B) by striking ``extension or education'' and inserting,
``research, extension, or education''; and
(3) in subparagraph (B) by inserting ``on a continuous
basis'' after ``procedures''.
[[Page S4082]]
SEC. 7302. INTEGRATED RESEARCH, EDUCATION, AND EXTENSION
COMPETITIVE GRANTS PROGRAM.
Section 406(f) of the Agricultural Research, Extension, and
Education Reform Act of 1998 (7 U.S.C. 7626(f)) is amended by
striking ``2012'' and inserting ``2017''.
SEC. 7303. SUPPORT FOR RESEARCH REGARDING DISEASES OF WHEAT,
TRITICALE, AND BARLEY CAUSED BY FUSARIUM
GRAMINEARUM OR BY TILLETIA INDICA.
Section 408(e) of the Agricultural Research, Extension, and
Education Reform Act of 1998 (7 U.S.C. 7628(e)) is amended by
striking ``such sums as may be necessary for each of fiscal
years 1999 through 2012'' and inserting ``$10,000,000 for
each of fiscal years 2013 through 2017''.
SEC. 7304. GRANTS FOR YOUTH ORGANIZATIONS.
Section 410(d) of the Agricultural Research, Extension, and
Education Reform Act of 1998 (7 U.S.C. 7630(d)) is amended by
striking ``section such sums as are necessary'' and all that
follows and inserting the following: ``section--
``(1) such sums as are necessary for each of fiscal years
2008 through 2012; and
``(2) $3,000,000 for each of fiscal years 2013 through
2017.''.
SEC. 7305. SPECIALTY CROP RESEARCH INITIATIVE.
Section 412 of the Agricultural Research, Extension, and
Education Reform Act of 1998 (7 U.S.C. 7632) is amended--
(1) in subsection (b)(3), by inserting ``handling and
processing,'' after ``production efficiency,'';
(2) in subsection (e)--
(A) in paragraph (1)--
(i) in subparagraph (B), by striking ``and'' at the end;
(ii) in subparagraph (C), by striking the period at the end
and inserting ``; and''; and
(iii) by inserting after subparagraph (C) the following:
``(D) consult with the specialty crops committee authorized
under section 1408A of the National Agricultural Research,
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3123a)
during the peer and merit review process.''; and
(B) in paragraph (3), by striking ``non-Federal'' and all
that follows through the end of the paragraph and inserting
``other sources in an amount that is at least equal to the
amount provided by a grant received under this section.'';
and
(3) in subsection (h)--
(A) in paragraph (1)--
(i) by striking ``(1) In general.--Of the funds'' and
inserting the following:
``(1) Mandatory funding.--
``(A) In general.--Of the funds''; and
(ii) by adding at the end the following:
``(B) Subsequent funding.--Of the funds of the Commodity
Credit Corporation, the Secretary shall make available to
carry out this section--
``(i) $25,000,000 for fiscal year 2013;
``(ii) $30,000,000 for each of fiscal years 2014 and 2015;
``(iii) $65,000,000 for fiscal year 2016; and
``(iv) $50,000,000 for fiscal year 2017 and each fiscal
year thereafter.''; and
(B) in paragraph (2), by striking ``2012'' and inserting
``2017''.
SEC. 7306. FOOD ANIMAL RESIDUE AVOIDANCE DATABASE PROGRAM.
Section 604(e) of the Agricultural Research, Extension, and
Education Reform Act of 1998 (7 U.S.C. 7642(e)) is amended by
striking ``2012'' and inserting ``2017''.
SEC. 7307. OFFICE OF PEST MANAGEMENT POLICY.
Section 614(f) of the Agricultural Research, Extension, and
Education Reform Act of 1998 (7 U.S.C. 7653(f)) is amended--
(1) by striking ``such sums as are necessary''; and
(2) by striking ``section'' and all that follows and
inserting the following: ``section--
``(1) such sums as are necessary for each of fiscal years
1999 through 2012; and
``(2) $3,000,000 for each of fiscal years 2013 through
2017.''.
SEC. 7308. AUTHORIZATION OF REGIONAL INTEGRATED PEST
MANAGEMENT CENTERS.
Subtitle B of title VI of the Agricultural Research,
Extension, and Education Reform Act of 1998 (7 U.S.C. 7651 et
seq.) is amended by adding at the end the following:
``SEC. 621. AUTHORIZATION OF REGIONAL INTEGRATED PEST
MANAGEMENT CENTERS.
``(a) In General.--There are established 4 regional
integrated pest management centers (referred to in this
section as the `Centers'), which shall be located at such
specific locations in the north central, northeastern,
southern, and western regions of the United States as the
Secretary shall specify.
``(b) Purposes.--The purposes of the Centers shall be--
``(1) to strengthen the connection of the Department with
production agriculture, research, and extension programs, and
agricultural stakeholders throughout the United States;
``(2) to increase the effectiveness of providing pest
management solutions for the private and public sectors;
``(3) to quickly respond to information needs of the public
and private sectors; and
``(4) to improve communication among the relevant
stakeholders.
``(c) Duties.--In meeting the purposes described in
subsection (b) and otherwise carrying out this section, the
Centers shall--
``(1) develop regional strategies to address pest
management needs;
``(2) assist the Department and partner institutions of the
Department in identifying, prioritizing, and coordinating a
national pest management research, extension, and education
program implemented on a regional basis;
``(3) establish a national pest management communication
network that includes--
``(A) the agencies of the Department and other government
agencies;
``(B) scientists at institutions of higher education; and
``(C) stakeholders focusing on pest management issues;
``(4) serve as regional hubs responsible for ensuring
efficient access to pest management expertise and data
available through institutions of higher education; and
``(5) on behalf of the Department, manage grants that can
be most effectively and efficiently delivered at the regional
level, as determined by the Secretary.''.
Subtitle D--Other Laws
SEC. 7401. CRITICAL AGRICULTURAL MATERIALS ACT.
Section 16(a) of the Critical Agricultural Materials Act (7
U.S.C. 178n(a)) is amended--
(1) by striking ``such sums as are necessary''; and
(2) by striking ``Act'' and all that follows and inserting
the following: ``Act--
``(1) such sums as are necessary for each of fiscal years
1991 through 2012; and
``(2) $2,000,000 for each of fiscal years 2013 through
2017.''.
SEC. 7402. EQUITY IN EDUCATIONAL LAND-GRANT STATUS ACT OF
1994.
(a) Definition of 1994 Institutions.--Section 532 of the
Equity in Educational Land-Grant Status Act of 1994 (7 U.S.C.
301 note; Public Law 103 382) is amended to read as follows:
``SEC. 532. DEFINITION OF 1994 INSTITUTIONS.
``In this part, the term `1994 Institutions' means any 1 of
the following:
``(1) Aaniiih Nakoda College.
``(2) Bay Mills Community College.
``(3) Blackfeet Community College.
``(4) Cankdeska Cikana Community College.
``(5) Chief Dull Knife Memorial College.
``(6) College of Menominee Nation.
``(7) College of the Muscogee Nation.
``(8) Comanche Nation College.
``(9) D-Q University.
``(10) Dine College.
``(11) Fond du Lac Tribal and Community College.
``(12) Fort Berthold Community College.
``(13) Fort Peck Community College.
``(14) Haskell Indian Nations University.
``(15) Ilisagvik College.
``(16) Institute of American Indian and Alaska Native
Culture and Arts Development.
``(17) Keweenaw Bay Ojibwa Community College.
``(18) Lac Courte Oreilles Ojibwa Community College.
``(19) Leech Lake Tribal College.
``(20) Little Big Horn College.
``(21) Little Priest Tribal College.
``(22) Navajo Technical College.
``(23) Nebraska Indian Community College.
``(24) Northwest Indian College.
``(25) Oglala Lakota College.
``(26) Saginaw Chippewa Tribal College.
``(27) Salish Kootenai College.
``(28) Sinte Gleska University.
``(29) Sisseton Wahpeton College.
``(30) Sitting Bull College.
``(31) Southwestern Indian Polytechnic Institute.
``(32) Stone Child College.
``(33) Tohono O'odham Community College.
``(34) Turtle Mountain Community College.
``(35) United Tribes Technical College.
``(36) White Earth Tribal and Community College.''.
(b) Endowment for 1994 Institutions.--
(1) In general.--Section 533 of the Equity in Educational
Land-Grant Status Act of 1994 (7 U.S.C. 301 note; Public Law
103 382) is amended--
(A) in subsection (a)(2)(A)(ii), by striking ``of such Act
as added by section 534(b)(1) of this part'' and inserting
``of that Act (7 U.S.C. 343(b)(3)) and for programs for
children, youth, and families at risk and for Federally
recognized tribes implemented under section 3(d) of that Act
(7 U.S.C. 343(d))''; and
(B) in subsection (b), in the first sentence by striking
``2012'' and inserting ``2017''.
(2) Conforming amendment.--Section 3(d) of the Smith-Lever
Act (7 U.S.C. 343(d)) is amended in the second sentence by
inserting ``and, in the case of programs for children, youth,
and families at risk and for Federally recognized tribes, the
1994 Institutions (as defined in section 532 of the Equity in
Educational Land-Grant Status Act of 1994 (7 U.S.C. 301 note;
Public Law 103 382)),'' before ``may compete for''.
(c) Institutional Capacity Building Grants.--Section 535 of
the Equity in Educational Land-Grant Status Act of 1994 (7
U.S.C. 301 note; Public Law 103 382) is amended by striking
``2012'' each place it appears in subsections (b)(1) and (c)
and inserting ``2017''.
(d) Research Grants.----
(1) Authorization of appropriations.--Section 536(c) of the
Equity in Educational Land-Grant Status Act of 1994 (7 U.S.C.
301 note; Public Law 103 382) is amended in the first
sentence by striking ``2012'' and inserting ``2017''.
(2) Research grant requirements.--Section 536(b) of the
Equity in Educational Land-Grant Status Act of 1994 (7 U.S.C.
301
[[Page S4083]]
note; Public Law 103 382) is amended by striking ``with at
least 1 other land-grant college or university'' and all that
follows and inserting the following: ``with-- ``
``(1) the Agricultural Research Service of the Department
of Agriculture; or
``(2) at least 1--
``(A) other land-grant college or university (exclusive of
another 1994 Institution);
``(B) non-land-grant college of agriculture (as defined in
section 1404 of the National Agricultural Research,
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3103));
or
``(C) cooperating forestry school (as defined in that
section).''.
(e) Effective Date.--The amendments made by subsections
(a), (b), and (d)(2) take effect on October 1, 2012.
SEC. 7403. RESEARCH FACILITIES ACT.
Section 6(a) of the Research Facilities Act (7 U.S.C.
390d(a)) is amended by striking ``2012'' and inserting
``2017''.
SEC. 7404. COMPETITIVE, SPECIAL, AND FACILITIES RESEARCH
GRANT ACT.
Section 2 of the Competitive, Special, and Facilities
Research Grant Act (7 U.S.C. 450i) is amended--
(1) in subsection (b)(11)(A), in the matter preceding
clause (i), by striking ``2012'' and inserting ``2017''; and
(2) by adding at the end the following:
``(l) Streamlining Grant Application Process.--Not later
than 1 year after the date of enactment of this subsection,
the Secretary shall submit to Congress a report that
includes--
``(1) an analysis of barriers that exist in the competitive
grants process administered by the National Institute of Food
and Agriculture that prevent eligible institutions and
organizations with limited institutional capacity from
successfully applying and competing for competitive grants;
and
``(2) specific recommendations for future steps that the
Department can take to streamline the competitive grants
application process so as to remove the barriers and increase
the success rates of applicants described in paragraph
(1).''.
SEC. 7405. ENHANCED USE LEASE AUTHORITY PILOT PROGRAM UNDER
DEPARTMENT OF AGRICULTURE REORGANIZATION ACT OF
1994.
Section 308(b)(6) of the Department of Agriculture
Reorganization Act of 1994 (7 U.S.C. 3125a note; Public Law
103 354) is amended by striking subparagraph (A) and
inserting the following:
``(A) on September 30, 2017; or''.
SEC. 7406. RENEWABLE RESOURCES EXTENSION ACT OF 1978.
(a) Authorization of Appropriations.--Section 6 of the
Renewable Resources Extension Act of 1978 (16 U.S.C. 1675) is
amended in the first sentence by striking ``2012'' and
inserting ``2017''.
(b) Termination Date.--Section 8 of the Renewable Resources
Extension Act of 1978 (16 U.S.C. 1671 note; Public Law 95
306) is amended by striking ``2012'' and inserting ``2017''.
SEC. 7407. NATIONAL AQUACULTURE ACT OF 1980.
Section 10 of the National Aquaculture Act of 1980 (16
U.S.C. 2809) is amended by striking ``2012'' each place it
appears and inserting ``2017''.
SEC. 7408. BEGINNING FARMER AND RANCHER DEVELOPMENT PROGRAM
UNDER FARM SECURITY AND RURAL INVESTMENT ACT OF
2002.
Section 7405 of the Farm Security and Rural Investment Act
of 2002 (7 U.S.C. 3319f) is amended--
(1) in subsection (c)(8)--
(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) beginning farmers and ranchers who are veterans (as
defined in section 101 of title 38, United States Code).'';
and
(2) in subsection (h)--
(A) in paragraph (1)--
(i) in subparagraph (A), by striking ``and'' at the end;
(ii) in subparagraph (B), by striking the period at the end
and inserting ``; and''; and
(iii) by adding at the end the following:
``(C) $50,000,000 for fiscal year 2013, to remain available
until expended.''; and
(B) in paragraph (2), by striking ``2012'' and inserting
``2017''.
Subtitle E--Food, Conservation, and Energy Act of 2008
PART I--AGRICULTURAL SECURITY
SEC. 7501. AGRICULTURAL BIOSECURITY COMMUNICATION CENTER.
Section 14112 of the Food, Conservation, and Energy Act of
2008 (7 U.S.C. 8912) is amended by striking subsection (c)
and inserting the following:
``(c) Authorization of Appropriations.--There are
authorized to be appropriated to carry out this section--
``(1) such sums as are necessary for each of fiscal years
2008 through 2012; and
``(2) $2,000,000 for each of fiscal years 2013 through
2017.''.
SEC. 7502. ASSISTANCE TO BUILD LOCAL CAPACITY IN AGRICULTURAL
BIOSECURITY PLANNING, PREPARATION, AND
RESPONSE.
Section 14113 of the Food, Conservation, and Energy Act of
2008 (7 U.S.C. 8913) is amended--
(1) in subsection (a)(2)--
(A) by striking ``such sums as may be necessary''; and
(B) by striking ``subsection'' and all that follows and
inserting the following: ``subsection--
``(1) such sums as are necessary for each of fiscal years
2008 through 2012; and
``(2) $15,000,000 for each of fiscal years 2013 through
2017.''; and
(2) in subsection (b)(2), by striking ``is authorized to be
appropriated to carry out this subsection'' and all that
follows and inserting the following: ``are authorized to be
appropriated to carry out this subsection--
``(1) $25,000,000 for each of fiscal years 2008 through
2012; and
``(2) $15,000,000 for each of fiscal years 2013 through
2017.''.
SEC. 7503. RESEARCH AND DEVELOPMENT OF AGRICULTURAL
COUNTERMEASURES.
Section 14121(b) of the Food, Conservation, and Energy Act
of 2008 (7 U.S.C. 8921(b)) is amended by striking ``is
authorized to be appropriated to carry out this section'' and
all that follows and inserting the following: ``are
authorized to be appropriated to carry out this section--
``(1) $50,000,000 for each of fiscal years 2008 through
2012; and
``(2) $15,000,000 for each of fiscal years 2013 through
2017.''.
SEC. 7504. AGRICULTURAL BIOSECURITY GRANT PROGRAM.
Section 14122(e) of the Food, Conservation, and Energy Act
of 2008 (7 U.S.C. 8922(e)) is amended--
(1) by striking ``such sums as are necessary''; and
(2) by striking ``section'' and all that follows and
inserting the following: ``section--
``(1) such sums as are necessary for each of fiscal years
2008 through 2012, to remain available until expended; and
``(2) $5,000,000 for each of fiscal years 2013 through
2017, to remain available until expended.''.
PART II--MISCELLANEOUS
SEC. 7511. GRAZINGLANDS RESEARCH LABORATORY.
Section 7502 of the Food, Conservation, and Energy Act of
2008 (Public Law 110 246; 112 Stat. 2019) is amended by
striking ``for the 5-year period beginning on the date of
enactment of this Act'' and inserting ``until September 30,
2017''.
SEC. 7512. BUDGET SUBMISSION AND FUNDING.
Section 7506 of the Food, Conservation, and Energy Act of
2008 (7 U.S.C. 7614c) is amended--
(1) in subsection (a)--
(A) by striking ``(a) Definition of Competitive Programs.--
In this section, the term''; and inserting the following:
``(a) Definitions.--In this section:
``(1) Competitive programs.--The term''; and
(B) by adding at the end the following:
``(2) Covered program.--The term `covered program' means--
``(A) each research program carried out by the Agricultural
Research Service or the Economic Research Service for which
annual appropriations are requested in the annual budget
submission of the President; and
``(B) each competitive program (as defined in section
251(f)(1) of the Department of Agriculture Reorganization Act
of 1994 (7 U.S.C. 6971(f)(1))) carried out by the National
Institute of Food and Agriculture for which annual
appropriations are requested in the annual budget submission
of the President.
``(3) Request for awards.--The term `request for awards'
means a funding announcement published by the National
Institute of Food and Agriculture that provides detailed
information on funding opportunities at the Institute,
including the purpose, eligibility, restriction, focus areas,
evaluation criteria, regulatory information, and instructions
on how to apply for such opportunities.''; and
(2) by adding at the end the following:
``(e) Additional Presidential Budget Submission
Requirement.--
``(1) In general.--Each year, the President shall submit to
Congress, together with the annual budget submission of the
President, the information described in paragraph (2) for
each funding request for a covered program.
``(2) Information described.--The information described in
this paragraph includes--
``(A) baseline information, including with respect to each
covered program--
``(i) the funding level for the program for the fiscal year
preceding the year the annual budget submission of the
President is submitted;
``(ii) the funding level requested in the annual budget
submission of the President, including any increase or
decrease in the funding level; and
``(iii) an explanation justifying any change from the
funding level specified in clause (i) to the level specified
in clause (ii);
``(B) with respect to each covered program that is carried
out by the Economic Research Service or the Agricultural
Research Service, the location and staff years of the
program;
``(C) the proposed funding levels to be allocated to, and
the expected publication date, scope, and allocation level
for, each request for awards to be published under--
``(i) each priority area specified in section 2(b)(2) of
the Competitive, Special, and Facilities Research Grant Act
(7 U.S.C. 450i(b)(2));
``(ii) each research and extension project carried out
under section 1621(a) of the Food, Agriculture, Conservation,
and Trade Act of 1990 (7 U.S.C. 5811(a));
[[Page S4084]]
``(iii) each grant awarded under section 1672B(a) of the
Food, Agriculture, Conservation, and Trade Act of 1990 (7
U.S.C. 5925b(a));
``(iv) each grant awarded under section 412(b) of the
Agricultural Research, Extension, and Education Reform Act of
1998 (7 U.S.C. 7632(b)); and
``(v) each grant awarded under 7405(c)(1) of the Farm
Security and Rural Investment Act of 2002 (7 U.S.C.
3319f(c)(1)); or
``(D) any other information the Secretary determines will
increase congressional oversight with respect to covered
programs.
``(3) Prohibition.--Unless the President submits the
information described in paragraph (2)(C) for a fiscal year,
the President may not carry out any program during the fiscal
year that is authorized under--
``(A) section 2(b) of the Competitive, Special, and
Facilities Research Grant Act (7 U.S.C. 450i(b));
``(B) section 1621 of the Food, Agriculture, Conservation,
and Trade Act of 1990 (7 U.S.C. 5811);
``(C) section 1672B of the Food, Agriculture, Conservation,
and Trade Act of 1990 (7 U.S.C. 5925b);
``(D) section 411 of the Agricultural Research, Extension,
and Education Reform Act of 1998 (7 U.S.C. 7631); or
``(E) section 7405 of the Farm Security and Rural
Investment Act of 2002 (7 U.S.C. 3319f).
``(f) Report of the Secretary of Agriculture.--Each year on
a date that is not later than the date on which the President
submits the annual budget submission, the Secretary shall
submit to Congress a report containing a description of the
agricultural research, extension, and education activities
carried out by the Federal Government during the fiscal year
that immediately precedes the year for which the report is
submitted, including--
``(1) a review of the extent to which those activities--
``(A) are duplicative or overlap within the Department of
Agriculture; or
``(B) are similar to activities carried out by--
``(i) other Federal agencies;
``(ii) the States (including the District of Columbia, the
Commonwealth of Puerto Rico and other territories or
possessions of the United States);
``(iii) institutions of higher education (as defined in
section 101 of the Higher Education Act of 1965 (20 U.S.C.
1001)); or
``(iv) the private sector; and
``(2) for each report submitted under this section on or
after January 1, 2013, a 5-year projection of national
priorities with respect to agricultural research, extension,
and education, taking into account both domestic and
international needs.''.
SEC. 7513. NATURAL PRODUCTS RESEARCH PROGRAM.
Section 7525 of the Food, Conservation, and Energy Act of
2008 (7 U.S.C. 5937) is amended by striking subsection (e)
and inserting the following:
``(e) Authorization of Appropriations.--There is authorized
to be appropriated to carry out this section $7,000,000 for
each of fiscal years 2013 through 2017.''.
SEC. 7514. SUN GRANT PROGRAM.
(a) In General.--Section 7526 of the Food, Conservation,
and Energy Act of 2008 (7 U.S.C. 8114) is amended--
(1) in subsection (a)(4)(B), by striking ``the Department
of Energy'' and inserting ``other appropriate Federal
agencies (as determined by the Secretary)'';
(2) in subsection (b)(1)--
(A) in subparagraph (A), by striking ``at South Dakota
State University'';
(B) in subparagraph (B), by striking ``at the University of
Tennessee at Knoxville'';
(C) in subparagraph (C), by striking ``at Oklahoma State
University'';
(D) in subparagraph (D), by striking ``at Oregon State
University'';
(E) in subparagraph (E), by striking ``at Cornell
University''; and
(F) in subparagraph (F), by striking ``at the University of
Hawaii'';
(3) in subsection (c)(1)--
(A) in subparagraph (B), by striking ``multistate'' and all
that follows through ``technology implementation'' and
inserting ``integrated, multistate research, extension, and
education programs on technology development and technology
implementation'';
(B) by striking subparagraph (C); and
(C) by redesignating subparagraph (D) as subparagraph (C);
(4) in subsection (d)--
(A) in paragraph (1)--
(i) by striking ``gasification'' and inserting
``bioproducts''; and
(ii) by striking ``the Department of Energy'' and inserting
``other appropriate Federal agencies'';
(B) by striking paragraph (2);
(C) by redesignating paragraphs (3) and (4) as paragraphs
(2) and (3), respectively; and
(D) in paragraph (1), by striking ``in accordance with
paragraph (2)''; and
(5) in subsection (g), by striking ``2012'' and inserting
``2017''.
(b) Conforming Amendments.--Section 7526(f) of the Food,
Conservation, and Energy Act of 2008 (7 U.S.C. 8114(f)) is
amended--
(1) in paragraph (1), by striking ``subsection
(c)(1)(D)(i)'' and inserting ``subsection (c)(1)(C)(i)''; and
(2) in paragraph (2), by striking ``subsection (d)(1)'' and
inserting ``subsection (d)''.
Subtitle F--Miscellaneous
SEC. 7601. FOUNDATION FOR FOOD AND AGRICULTURE RESEARCH.
(a) Definitions.--In this section:
(1) Board.--The term ``Board'' means the Board of Directors
described in subsection (e).
(2) Department.--The term ``Department'' means the
Department of Agriculture.
(3) Foundation.--The term ``Foundation'' means the
Foundation for Food and Agriculture Research established
under subsection (b).
(4) Secretary.--The term ``Secretary'' means the Secretary
of Agriculture.
(b) Establishment.--
(1) In general.--The Secretary shall establish a nonprofit
corporation to be known as the ``Foundation for Food and
Agriculture Research''.
(2) Status.--The Foundation shall not be an agency or
instrumentality of the United States Government.
(c) Purposes.--The purposes of the Foundation shall be--
(1) to advance the research mission of the Department by
supporting agricultural research activities focused on
addressing key problems of national and international
significance including--
(A) plant health, production, and plant products;
(B) animal health, production, and products;
(C) food safety, nutrition, and health;
(D) renewable energy, natural resources, and the
environment;
(E) agricultural and food security;
(F) agriculture systems and technology; and
(G) agriculture economics and rural communities; and
(2) to foster collaboration with agricultural researchers
from the Federal Government, institutions of higher
education, industry, and nonprofit organizations.
(d) Duties.--
(1) In general.--The Foundation shall--
(A) award grants to, or enter into contracts, memoranda of
understanding, or cooperative agreements with, scientists and
entities, which may include agricultural research agencies in
the Department, university consortia, public-private
partnerships, institutions of higher education, nonprofit
organizations, and industry, to efficiently and effectively
advance the goals and priorities of the Foundation;
(B) in consultation with the Secretary--
(i) identify existing and proposed Federal intramural and
extramural research and development programs relating to the
purposes of the Foundation described in subsection (c); and
(ii) coordinate Foundation activities with those programs
so as to minimize duplication of existing efforts;
(C) identify unmet and emerging agricultural research needs
after reviewing the Roadmap for Agricultural Research,
Education and Extension as required by section 7504 of the
Food, Conservation, and Energy Act of 2008 (7 U.S.C. 7614a);
(D) facilitate technology transfer and release of
information and data gathered from the activities of the
Foundation to the agricultural research community;
(E) promote and encourage the development of the next
generation of agricultural research scientists; and
(F) carry out such other activities as the Board determines
to be consistent with the purposes of the Foundation.
(2) Authority.--Subject to paragraph (3), the Foundation
shall be the sole entity responsible for carrying out the
duties enumerated in this subsection.
(3) Relationship to other activities.--The activities
described in paragraph (1) shall be supplemental to any other
activities at the Department and shall not preempt any
authority or responsibility of the Department under another
provision of law.
(e) Board of Directors.--
(1) Establishment.--The Foundation shall be governed by a
Board of Directors.
(2) Composition.--
(A) In general.--The Board shall be composed of appointed
and ex-officio, nonvoting members.
(B) Ex-officio members.--The ex-officio members of the
Board shall be the following individuals or designees:
(i) The Secretary.
(ii) The Under Secretary of Agriculture for Research,
Education, and Economics.
(iii) The Administrator of the Agricultural Research
Service.
(iv) The Director of the National Institute of Food and
Agriculture.
(v) The Director of the National Science Foundation.
(C) Appointed members.--
(i) In general.--The ex-officio members of the Board under
subparagraph (B) shall, by majority vote, appoint to the
Board 15 individuals, of whom--
(I) 8 shall be selected from a list of candidates to be
provided by the National Academy of Sciences; and
(II) 7 shall be selected from lists of candidates provided
by industry.
(ii) Requirements.--
(I) Expertise.--The ex-officio members shall ensure that a
majority of the members of the Board have actual experience
in agricultural research and, to the extent practicable,
represent diverse sectors of agriculture.
(II) Limitation.--No employee of the Federal Government may
serve as an appointed member of the Board under this
subparagraph.
[[Page S4085]]
(III) Not federal employment.--Appointment to the Board
under this subparagraph shall not constitute Federal
employment.
(iii) Authority.--All appointed members of the Board shall
be voting members.
(D) Chair.--The Board shall, from among the members of the
Board, designate an individual to serve as Chair of the
Board.
(3) Initial meeting.--Not later than 60 days after the date
of enactment of this Act, the Secretary shall convene a
meeting of the ex-officio members of the Board--
(A) to incorporate the Foundation; and
(B) to appoint the members of the Board in accordance with
paragraph (2)(C)(i).
(4) Duties.--
(A) In general.--The Board shall--
(i) establish bylaws for the Foundation that, at a minimum,
include--
(I) policies for the selection of future Board members,
officers, employees, agents, and contractors of the
Foundation;
(II) policies, including ethical standards, for--
(aa) the acceptance, solicitation, and disposition of
donations and grants to the Foundation; and
(bb) the disposition of assets of the Foundation, including
appropriate limits on the ability of donors to designate, by
stipulation or restriction, the use or recipient of donated
funds;
(III) policies that would subject all employees, fellows,
trainees, and other agents of the Foundation (including
members of the Board) to the conflict of interest standards
under section 208 of title 18, United States Code;
(IV) policies for writing, editing, printing, publishing,
and vending of books and other materials;
(V) policies for the conduct of the general operations of
the Foundation, including a cap on administrative expenses
for recipients of a grant, contract, or cooperative agreement
from the Foundation; and
(VI) specific duties for the Executive Director;
(ii) prioritize and provide overall direction for the
activities of the Foundation;
(iii) evaluate the performance of the Executive Director;
and
(iv) carry out any other necessary activities regarding the
Foundation.
(B) Establishment of bylaws.--In establishing bylaws under
subparagraph (A)(i), the Board shall ensure that the bylaws
do not--
(i) reflect unfavorably on the ability of the Foundation to
carry out the duties of the Foundation in a fair and
objective manner; or
(ii) compromise, or appear to compromise, the integrity of
any governmental agency or program, or any officer or
employee employed by or involved in a governmental agency or
program.
(5) Terms and vacancies.--
(A) Terms.--
(i) In general.--The term of each member of the Board
appointed under paragraph (2)(C) shall be 5 years.
(ii) Partial terms.--If a member of the Board does not
serve the full term applicable under clause (i), the
individual appointed to fill the resulting vacancy shall be
appointed for the remainder of the term of the predecessor of
the individual.
(iii) Transition.--A member of the Board may continue to
serve after the expiration of the term of the member until a
successor is appointed.
(B) Vacancies.--Any vacancy in the membership of the Board
shall be filled in the manner in which the original position
was made and shall not affect the power of the remaining
members to execute the duties of the Board.
(6) Compensation.--Members of the Board may not receive
compensation for service on the Board but may be reimbursed
for travel, subsistence, and other necessary expenses
incurred in carrying out the duties of the Board.
(7) Meetings and quorum.--A majority of the members of the
Board shall constitute a quorum for purposes of conducting
business of the Board.
(f) Administration.--
(1) Executive director.--
(A) In general.--The Board shall hire an Executive Director
who shall carry out such duties and responsibilities as the
Board may prescribe.
(B) Service.--The Executive Director shall serve at the
pleasure of the Board.
(2) Administrative powers.--
(A) In general.--In carrying out this section, the Board,
acting through the Executive Director, may--
(i) adopt, alter, and use a corporate seal, which shall be
judicially noticed;
(ii) hire, promote, compensate, and discharge 1 or more
officers, employees, and agents, as may be necessary, and
define the duties of the officers, employees, and agents;
(iii) solicit and accept any funds, gifts, grants, devises,
or bequests of real or personal property made to the
Foundation, including such support from private entities;
(iv) prescribe the manner in which--
(I) real or personal property of the Foundation is
acquired, held, and transferred;
(II) general operations of the Foundation are to be
conducted; and
(III) the privileges granted to the Board by law are
exercised and enjoyed;
(v) with the consent of the applicable executive department
or independent agency, use the information, services, and
facilities of the department or agency in carrying out this
section;
(vi) enter into contracts with public and private
organizations for the writing, editing, printing, and
publishing of books and other material;
(vii) hold, administer, invest, and spend any gift, devise,
or bequest of real or personal property made to the
Foundation;
(viii) enter into such contracts, leases, cooperative
agreements, and other transactions as the Board considers
appropriate to conduct the activities of the Foundation;
(ix) modify or consent to the modification of any contract
or agreement to which the Foundation is a party or in which
the Foundation has an interest;
(x) take such action as may be necessary to obtain patents
and licenses for devices and procedures developed by the
Foundation and employees of the Foundation;
(xi) sue and be sued in the corporate name of the
Foundation, and complain and defend in courts of competent
jurisdiction;
(xii) appoint other groups of advisors as may be determined
necessary to carry out the functions of the Foundation; and
(xiii) exercise such other incidental powers as are
necessary to carry out the duties and functions of the
Foundation in accordance with this section
(B) Limitation.--No appointed member of the Board or
officer or employee of the Foundation or of any program
established by the Foundation (other than ex-officio members
of the Board) shall exercise administrative control over any
Federal employee
(3) Records.--
(A) Audits.--The Foundation shall--
(i) provide for annual audits of the financial condition of
the Foundation; and
(ii) make the audits, and all other records, documents, and
other papers of the Foundation, available to the Secretary
and the Comptroller General of the United States for
examination or audit.
(B) Reports.--
(i) Annual report on foundation.--
(I) In general.--Not later than 5 months following the end
of each fiscal year, the Foundation shall publish a report
for the preceding fiscal year that includes--
(aa) a description of Foundation activities, including
accomplishments; and
(bb) a comprehensive statement of the operations and
financial condition of the Foundation.
(II) Financial condition.--Each report under subclause (I)
shall include a description of all gifts or grants to the
Foundation of real or personal property or money, which shall
include--
(aa) the source of the gifts or grants; and
(bb) any restrictions on the purposes for which the gift or
grant may be used.
(III) Availability.--The Foundation shall--
(aa) make copies of each report submitted under subclause
(I) available for public inspection; and
(bb) on request, provide a copy of the report to any
individual.
(IV) Public meeting.--The Board shall hold an annual public
meeting to summarize the activities of the Foundation.
(ii) Grant reporting.--Any recipient of a grant under
subsection (d)(1)(A) shall provide the Foundation with a
report at the conclusion of any research or studies conducted
the describes the results of the research or studies,
including any data generated.
(4) Integrity.--
(A) In general.--To ensure integrity in the operations of
the Foundation, the Board shall develop and enforce
procedures relating to standards of conduct, financial
disclosure statements, conflict of interest (including
recusal and waiver rules), audits, and any other matters
determined appropriate by the Board.
(B) Financial conflicts of interest.--Any individual who is
an officer, employee, or member of the Board is prohibited
from any participation in deliberations by the Foundation of
a matter that would directly or predictably affect any
financial interest of--
(i) the individual;
(ii) a relative (as defined in section 109 of the Ethics in
Government Act of 1978 (5 U.S.C. App.)) of that individual;
or
(iii) a business organization or other entity in which the
individual has an interest, including an organization or
other entity with which the individual is negotiating
employment.
(5) Intellectual property.--The Board shall adopt written
standards to govern ownership of any intellectual property
rights derived from the collaborative efforts of the
Foundation.
(6) Liability.--The United States shall not be liable for
any debts, defaults, acts, or omissions of the Foundation nor
shall the full faith and credit of the United States extend
to any obligations of the Foundation.
(g) Funds.--
(1) Mandatory funding.--
(A) In general.--On October 1, 2012, of the funds of the
Commodity Credit Corporation, the Secretary shall transfer to
the Foundation to carry out this section $100,000,000, to
remain available until expended under the conditions
described in subparagraph (B).
(B) Conditions on expenditure.--The Foundation may use the
funds made available under subparagraph (A) to carry out the
purposes of the Foundation only to the extent that the
Foundation secures an equal amount of non-Federal matching
funds for each expenditure.
(C) Prohibition on construction.--None of the funds made
available under subparagraph (A) may be used for
construction.
[[Page S4086]]
(2) Separation of funds.--The Executive Director shall
ensure that any funds received under paragraph (1) are held
in separate accounts from funds received from nongovernmental
entities as described in subsection (f)(2)(A)(iii).
TITLE VIII--FORESTRY
Subtitle A--Repeal of Certain Forestry Programs
SEC. 8001. FOREST LAND ENHANCEMENT PROGRAM.
(a) Repeal.--Section 4 of the Cooperative Forestry
Assistance Act of 1978 (16 U.S.C. 2103) is repealed.
(b) Conforming Amendment.--Section 8002 of the Farm
Security and Rural Investment Act of 2002 (Public Law 107
171; 16 U.S.C. 2103 note) is amended by striking subsection
(a).
(c) Effective Date.--The amendments made by this section
shall take effect on October 1, 2012.
SEC. 8002. WATERSHED FORESTRY ASSISTANCE PROGRAM.
(a) Repeal.--Section 6 of the Cooperative Forestry
Assistance Act of 1978 (16 U.S.C. 2103b) is repealed.
(b) Effective Date.--The amendment made by this section
shall take effect on October 1, 2012.
SEC. 8003. EXPIRED COOPERATIVE NATIONAL FOREST PRODUCTS
MARKETING PROGRAM.
Section 18 of the Cooperative Forestry Assistance Act of
1978 (16 U.S.C. 2112) is repealed.
SEC. 8004. HISPANIC-SERVING INSTITUTION AGRICULTURAL LAND
NATIONAL RESOURCES LEADERSHIP PROGRAM.
(a) Repeal.--Section 8402 of the Food, Conservation, and
Energy Act of 2008 (16 U.S.C. 1649a) is repealed.
(b) Effective Date.--The amendment made by this section
shall take effect on October 1, 2012.
SEC. 8005. TRIBAL WATERSHED FORESTRY ASSISTANCE PROGRAM.
(a) Repeal.--Section 303 of the Healthy Forests Restoration
Act of 2003 (16 U.S.C. 6542) is repealed.
(b) Effective Date.--The amendment made by this section
shall take effect on October 1, 2012.
Subtitle B--Reauthorization of Cooperative Forestry Assistance Act of
1978 Programs
SEC. 8101. STATE-WIDE ASSESSMENT AND STRATEGIES FOR FOREST
RESOURCES.
Section 2A(f)(1) of the Cooperative Forestry Assistance Act
of 1978 (16 U.S.C. 2101a(f)(1)) is amended by striking
``2012'' and inserting ``2017''.
SEC. 8102. FOREST STEWARDSHIP PROGRAM.
Section 5(h) of the Cooperative Forestry Assistance Act of
1978 (16 U.S.C. 2103a(h)) is amended by striking ``such sums
as may be necessary thereafter'' and inserting ``$50,000,000
for each of fiscal years 2013 through 2017''.
SEC. 8103. FOREST LEGACY PROGRAM.
Section 7 of the Cooperative Forestry Assistance Act of
1978 (16 U.S.C. 2103c) is amended by striking subsection (m)
and inserting the following:
``(m) Funding.--
``(1) Authorization of appropriations.--There is authorized
to be appropriated to carry out this section $200,000,000 for
each of fiscal years 2013 through 2017.
``(2) Additional funding sources.--In addition to any funds
appropriated for each fiscal year to carry out this section,
the Secretary may use any other Federal funds available to
the Secretary.''.
SEC. 8104. COMMUNITY FOREST AND OPEN SPACE CONSERVATION
PROGRAM.
Section 7A of the Cooperative Forestry Assistance Act of
1978 (16 U.S.C. 2103d) is amended by striking subsection (g)
and inserting the following:
``(g) Authorization of Appropriations.--There is authorized
to be appropriated to carry out this section $50,000,000 for
each of fiscal years 2013 through 2017.''.
SEC. 8105. URBAN AND COMMUNITY FORESTRY ASSISTANCE.
Section 9(i) of the Cooperative Forestry Assistance Act of
1978 (16 U.S.C. 2105(i)) is amended by striking ``such sums
as may be necessary for each fiscal year thereafter'' and
inserting ``$50,000,000 for each of fiscal years 2013 through
2017''.
Subtitle C--Reauthorization of Other Forestry-related Laws
SEC. 8201. RURAL REVITALIZATION TECHNOLOGIES.
Section 2371(d)(2) of the Food, Agriculture, Conservation,
and Trade Act of 1990 (7 U.S.C. 6601(d)(2)) is amended by
striking ``2012'' and inserting ``2017''.
SEC. 8202. OFFICE OF INTERNATIONAL FORESTRY.
Section 2405 of the Global Climate Change Prevention Act of
1990 (7 U.S.C. 6704) is amended by striking subsection (d)
and inserting the following:
``(d) Authorization of Appropriations.--To carry out this
section, there are authorized to be appropriated--
``(1) such sums as are necessary for each of fiscal years
1996 through 2012; and
``(2) $10,000,000 for each of fiscal years 2013 through
2017.''.
SEC. 8203. INSECT INFESTATIONS AND RELATED DISEASES.
(a) Findings and Purposes.--Section 401 of the Healthy
Forests Restoration Act of 2003 (16 U.S.C. 6551) is amended--
(1) in subsection (a)--
(A) by redesignating paragraphs (3) through (12) as
paragraphs (4) through (13), respectively; and
(B) by inserting after paragraph (2) the following:
``(3) the mountain pine beetle is--
``(A) threatening and ravaging forests throughout the
Western region of the United States, including Arizona,
California, Colorado, Idaho, Montana, Nevada, New Mexico,
Oregon, and South Dakota;
``(B) reaching epidemic populations and severely impacting
over 41,000,000 acres in western forests; and
``(C) deteriorating forest health in national forests and,
when combined with drought, disease, and storm damage, is
resulting in extreme fire hazards in national forests across
the Western United States and endangering the economic
stability of surrounding adjacent communities, ranches, and
parks;''; and
(2) in subsection (b)--
(A) in paragraph (2), by striking ``and'' at the end;
(B) in paragraph (3), by striking the period at the end and
inserting ``; and''; and
(C) by adding at the end the following:
``(4) to provide for designation of treatment areas
pursuant to section 405.''.
(b) Designation of Treatment Areas.--Title IV of the
Healthy Forests Restoration Act of 2003 (16 U.S.C. 6551 et
seq.) is amended--
(1) by redesignating sections 405 and 406 (16 U.S.C. 6555,
6556) as sections 406 and 407, respectively; and
(2) by inserting after section 404 (16 U.S.C. 6554) the
following:
``SEC. 405. DESIGNATION OF TREATMENT AREAS.
``(a) Designation of Treatment Areas.--Not later than 60
days after the date of enactment of the Agriculture Reform,
Food, and Jobs Act of 2012, the Secretary shall designate
treatment areas on at least 1 national forest in each State,
if requested by the Governor of the State, that the Secretary
determines, based on annual forest health surveys, are
experiencing declining forest health due to insect or disease
infestation.
``(b) Treatment of Areas.--The Secretary may carry out
treatments to address the insect or disease infestation in
the areas designated under subsection (a) in accordance with
sections 104, 105, 106, and 401.
``(c) Authorization of Appropriations.--There is authorized
to be appropriated to carry out this section $100,000,000 for
each of fiscal years 2013 through 2017.''.
(c) Authorization of Appropriations.--Section 407 of the
Healthy Forests Restoration Act of 2003 (as redesignated by
subsection (b)(1)) is amended by striking ``2008'' and
inserting ``2017''.
SEC. 8204. STEWARDSHIP END RESULT CONTRACTING PROJECTS.
(a) In General.--Title VI of the Healthy Forests
Restoration Act of 2003 (16 U.S.C. 6591) is amended by adding
at the end the following:
``SEC. 602. STEWARDSHIP END RESULT CONTRACTING PROJECTS.
``(a) Definitions.--In this section:
``(1) Chief.--The term `Chief' means the Chief of the
Forest Service.
``(2) Director.--The term `Director' means the Director of
the Bureau of Land Management.
``(b) Projects.--The Chief and the Director, via agreement
or contract as appropriate, may enter into stewardship
contracting projects with private persons or other public or
private entities to perform services to achieve land
management goals for the national forests and the public
lands that meet local and rural community needs.
``(c) Land Management Goals.--The land management goals of
a project under subsection (b) may include--
``(1) road and trail maintenance or obliteration to restore
or maintain water quality;
``(2) soil productivity, habitat for wildlife and
fisheries, or other resource values;
``(3) setting of prescribed fires to improve the
composition, structure, condition, and health of stands or to
improve wildlife habitat;
``(4) removing vegetation or other activities to promote
healthy forest stands, reduce fire hazards, or achieve other
land management objectives;
``(5) watershed restoration and maintenance;
``(6) restoration and maintenance of wildlife and fish; or
``(7) control of noxious and exotic weeds and
reestablishing.
``(d) Agreements or Contracts.--
``(1) Procurement procedure.--A source for performance of
an agreement or contract under subsection (b) shall be
selected on a best-value basis, including consideration of
source under other public and private agreements or
contracts.
``(2) Contract for sale of property.--A contract entered
into under this section may, at the discretion of the
Secretary of Agriculture, be considered a contract for the
sale of property under such terms as the Secretary may
prescribe without regard to any other provision of law.
``(3) Term.--
``(A) In general.--Except as provided in subparagraph (B),
the Chief and the Director may enter into a contract under
subsection (b) in accordance with section 3903 of title 41,
United States Code.
``(B) Maximum.--The period of the contract under subsection
(b) may exceed 5 years but may not exceed 10 years.
``(4) Offsets.--
``(A) In general.--The Chief and the Director may apply the
value of timber or other
[[Page S4087]]
forest products removed as an offset against the cost of
services received under the agreement or contract described
in subsection (b).
``(B) Methods of appraisal.--The value of timber or other
forest products used as an offset under subparagraph (A)--
``(i) shall be determined using appropriate methods of
appraisal commensurate with the quantity of products to be
removed; and
``(ii) may--
``(I) be determined using a unit of measure appropriate to
the contracts; and
``(II) may include valuing products on a per-acre basis.
``(5) Relation to other laws.--Notwithstanding subsections
(d) and (g) of section 14 of the National Forest Management
Act of 1976 (16 U.S.C. 472a), the Chief may enter into an
agreement or contract under subsection (b).
``(6) Contracting officer.--Notwithstanding any other
provision of law, the Secretary or the Secretary of the
Interior may determine the appropriate contracting officer to
enter into and administer an agreement or contract under
subsection (b).
``(e) Receipts.--
``(1) In general.--The Chief and the Director may collect
monies from an agreement or contract under subsection (b) if
the collection is a secondary objective of negotiating the
contract that will best achieve the purposes of this section.
``(2) Use.--Monies from an agreement or contract under
subsection (b)--
``(A) may be retained by the Chief and the Director; and
``(B) shall be available for expenditure without further
appropriation at the project site from which the monies are
collected or at another project site.
``(3) Relation to other laws.--
``(A) In general.--Notwithstanding any other provision of
law, the value of services received by the Chief or the
Director under a stewardship contract project conducted under
this section, and any payments made or resources provided by
the contractor, Chief, or Director shall not be considered
monies received from the National Forest System or the public
lands.
``(B) Knutson-vanderberg act.--The Act of June 9, 1930
(commonly known as the `Knutson-Vanderberg Act') (16 U.S.C.
576 et seq.) shall not apply to any agreement or contract
under subsection (b).
``(f) Costs of Removal.--Notwithstanding the fact that a
contractor did not harvest the timber, the Chief may collect
deposits from a contractor covering the costs of removal of
timber or other forest products under--
``(1) the Act of August 11, 1916 (16 U.S.C. 490); and
``(2) and the Act of June 30, 1914 (16 U.S.C. 498).
``(g) Performance and Payment Guarantees.--
``(1) In general.--The Chief and the Director may require
performance and payment bonds under sections 28.103 2 and
28.103 3 of the Federal Acquisition Regulation, in an amount
that the contracting officer considers sufficient to protect
the investment in receipts by the Federal Government
generated by the contractor from the estimated value of the
forest products to be removed under a contract under
subsection (b).
``(2) Excess offset value.--If the offset value of the
forest products exceeds the value of the resource improvement
treatments, the Chief and the Director may--
``(A) collect any residual receipts under the Act of June
9, 1930 (commonly known as the `Knutson-Vanderberg Act') (16
U.S.C. 576 et seq.); and
``(B) apply the excess to other authorized stewardship
projects.
``(h) Monitoring and Evaluation.--
``(1) In general.--The Chief and the Director shall
establish a multiparty monitoring and evaluation process that
accesses the stewardship contracting projects conducted under
this section.
``(2) Participants.--Other than the Chief and Director,
participants in the process described in paragraph (1) may
include--
``(A) any cooperating governmental agencies, including
tribal governments; and
``(B) any other interested groups or individuals.
``(i) Reporting.--Not later than 1 year after the date of
enactment of this section, and annually thereafter, the Chief
and the Director shall report to the Committee on
Agriculture, Nutrition, and Forestry of the Senate and the
Committee on Agriculture of the House of Representatives on--
``(1) the status of development, execution, and
administration of agreements or contracts under subsection
(b);
``(2) the specific accomplishments that have resulted; and
``(3) the role of local communities in the development of
agreements or contract plans.''.
(b) Conforming Amendment.--Section 347 of the Department of
the Interior and Related Agencies Appropriations Act, 1999
(16 U.S.C. 2104 note; Public Law 105 277) is repealed.
SEC. 8205. HEALTHY FORESTS RESERVE PROGRAM.
(a) Definition of Acreage Owned by Indian Tribes.--Section
502(e)(3) of the Healthy Forests Restoration Act (16 U.S.C.
6572(e)(3)) is amended--
(1) in subparagraph (C), by striking ``subparagraphs (A)
and (B)'' and inserting ``clauses (i) and (ii)'';
(2) by redesignating subparagraphs (A) through (C) as
clauses (i) through (iii), respectively, and indenting
appropriately; and
(3) by striking ``In the case of'' and inserting the
following:
``(A) Definition of acreage owned by indian tribes.--In
this paragraph, the term `acreage owned by Indian tribes'
includes--
``(i) land that is held in trust by the United States for
Indian tribes or individual Indians;
``(ii) land, the title to which is held by Indian tribes or
individual Indians subject to Federal restrictions against
alienation or encumbrance;
``(iii) land that is subject to rights of use, occupancy,
and benefit of certain Indian tribes;
``(iv) land that is held in fee title by an Indian tribe;
or
``(v) land that is owned by a native corporation formed
under section 17 of the Act of June 18, 1934 (commonly known
as the `Indian Reorganization Act') (25 U.S.C. 477) or
section 8 of the Alaska Native Claims Settlement Act (43
U.S.C. 1607); or
``(vi) a combination of 1 or more types of land described
in clauses (i) through (v).
``(B) Enrollment of acreage.--In the case of''.
(b) Change in Funding Source for Healthy Forests Reserve
Program.--Section 508 of the Healthy Forests Restoration Act
of 2003 (16 U.S.C. 6578) is amended--
(1) in subsection (a), by striking ``In General'' and
inserting ``Fiscal Years 2009 Through 2012'';
(2) by redesignating subsection (b) as subsection (d); and
(3) by inserting after subsection (a) the following:
``(b) Fiscal Years 2013 Through 2017.--There is authorized
to be appropriated to the Secretary of Agriculture to carry
out this section $9,750,000 for each of fiscal years 2013
through 2017.
``(c) Additional Source of Funds.--In addition to funds
appropriated pursuant to the authorization of appropriations
in subsection (b) for a fiscal year, the Secretary may use
such amount of the funds appropriated for that fiscal year to
carry out the Soil Conservation and Domestic Allotment Act
(16 U.S.C. 590a et seq.) as the Secretary determines
necessary to cover the cost of technical assistance,
management, and enforcement responsibilities for land
enrolled in the healthy forests reserve program pursuant to
subsections (a) and (b) of section 504.''.
Subtitle D--Miscellaneous Provisions
SEC. 8301. MCINTIRE-STENNIS COOPERATIVE FORESTRY ACT.
(a) 1890 Waivers.--Section 4 of Public Law 87 788 (commonly
known as the ``McIntire-Stennis Cooperative Forestry Act'')
(16 U.S.C. 582a 3) is amended by inserting ``The matching
funds requirement shall not be applicable to eligible 1890
Institutions (as defined in section 2 of the Agricultural
Research, Extension, and Education Reform Act of 1998 (7
U.S.C. 7601)) if the allocation is below $200,000.'' before
``The Secretary is authorized'' in the second sentence.
(b) Participation.--Section 8 of Public Law 87 788
(commonly known as the `` `McIntire-Stennis Cooperative
Forestry Act'') (16 U.S.C. 582a 7) is amended by inserting
`the Federated States of Micronesia, American Samoa, the
Northern Mariana Islands, the District of Columbia,' before
`and Guam' ''.
(c) Effective Date.--The amendments made by this section
take effect on October 1, 2012.
SEC. 8302. REVISION OF STRATEGIC PLAN FOR FOREST INVENTORY
AND ANALYSIS.
(a) Revision Required.--Not later than 180 days after the
date of enactment of this Act, the Secretary of Agriculture
shall revise the strategic plan for forest inventory and
analysis initially prepared pursuant to section 3(e) of the
Forest and Rangeland Renewable Resources Research Act of 1978
(16 U.S.C. 1642(e)) to address the requirements imposed by
subsection (b).
(b) Elements of Revised Strategic Plan.--In revising the
strategic plan, the Secretary of Agriculture shall describe
in detail the organization, procedures, and funding needed to
achieve each of the following:
(1) Complete the transition to a fully annualized forest
inventory program and include inventory and analysis of
interior Alaska.
(2) Implement an annualized inventory of trees in urban
settings, including the status and trends of trees and
forests, and assessments of their ecosystem services, values,
health, and risk to pests and diseases.
(3) Report information on renewable biomass supplies and
carbon stocks at the local, State, regional, and national
level, including by ownership type.
(4) Engage State foresters and other users of information
from the forest inventory and analysis in reevaluating the
list of core data variables collected on forest inventory and
analysis plots with an emphasis on demonstrated need.
(5) Improve the timeliness of the timber product output
program and accessibility of the annualized information on
that database.
(6) Foster greater cooperation among the forest inventory
and analysis program, research station leaders, and State
foresters and other users of information from the forest
inventory and analysis.
(7) Availability of and access to non-Federal resources to
improve information analysis and information management.
(8) Collaborate with the Natural Resources Conservation
Service, National Aeronautics and Space Administration,
National Oceanic
[[Page S4088]]
and Atmospheric Administration, and United States Geological
Survey to integrate remote sensing, spatial analysis
techniques, and other new technologies in the forest
inventory and analysis program.
(9) Understand and report on changes in land cover and use.
(10) Expand existing programs to promote sustainable forest
stewardship through increased understanding, in partnership
with other Federal agencies, of the over 10 million family
forest owners, their demographics, and the barriers to forest
stewardship.
(11) Implement procedures to improve the statistical
precision of estimates at the sub-State level.
(c) Submission of Revised Strategic Plan.--The Secretary of
Agriculture shall submit the revised strategic plan to the
Committee on Agriculture of the House of Representatives and
the Committee on Agriculture, Nutrition, and Forestry of the
Senate.
TITLE IX--ENERGY
SEC. 9001. DEFINITION OF RENEWABLE CHEMICAL.
Section 9001 of the Farm Security and Rural Investment Act
of 2002 (7 U.S.C. 8101) 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) Renewable chemical.--The term `renewable chemical'
means a monomer, polymer, plastic, formulated product, or
chemical substance produced from renewable biomass.''.
SEC. 9002. BIOBASED MARKETS PROGRAM.
(a) In General.--Section 9002 of the Farm Security and
Rural Investment Act of 2002 (7 U.S.C. 8102) is amended--
(1) in subsection (a)--
(A) in paragraph (2)(A)(i)--
(i) in subclause (I), by striking ``and'' at the end;
(ii) in subclause (II)(bb), by striking the period at the
end and inserting ``; and''; and
(iii) by adding at the end the following:
``(III) establish a targeted biobased-only procurement
requirement under which the procuring agency shall issue a
certain number of biobased-only contracts when the procuring
agency is purchasing products, or purchasing services that
include the use of products, that are included in a biobased
product category designated by the Secretary.''; and
(B) in paragraph (3)--
(i) in subparagraph (B)--
(I) in clause (v), by inserting ``as determined to be
necessary by the Secretary based on the availability of
data,'' before ``provide information'';
(II) by redesignating clauses (v) and (vi) as clauses (vii)
and (viii), respectively; and
(III) by inserting after clause (iv) the following:
``(v) require reporting of quantities and types of biobased
products purchased by procuring agencies;
``(vi) focus on products that apply an innovative approach
to growing, harvesting, procuring, processing, or
manufacturing biobased products regardless of the date of
entry of the products into the marketplace;''; and
(ii) by adding at the end the following:
``(F) Required designations.--Not later than 1 year after
the date of enactment of this subparagraph, the Secretary
shall begin to designate intermediate ingredients or
feedstocks and assembled and finished biobased products in
the guidelines issued under this paragraph.'';
(2) in subsection (b)--
(A) in paragraph (3)--
(i) by striking ``The Secretary'' and inserting the
following:
``(A) In general.--The Secretary''; and
(ii) by adding at the end the following:
``(B) Auditing and compliance.--The Secretary may carry out
such auditing and compliance activities as the Secretary
determines to be necessary to ensure compliance with
subparagraph (A).''; and
(B) by adding at the end the following:
``(4) Assembled and finished products.--Not later than 1
year after the date of enactment of this paragraph, the
Secretary shall begin issuing criteria for determining which
assembled and finished products may qualify to receive the
label under paragraph (1).'';
(3) by redesignating subsections (d), (e), (f), (g), and
(h) as subsections (e), (f), (g), (i), and (j), respectively;
(4) by inserting after subsection (c) the following:
``(d) Outreach, Education, and Promotion.--
``(1) In general.--The Secretary may engage in outreach,
educational, and promotional activities intended to increase
knowledge, awareness, and benefits of biobased products.
``(2) Authorized activities.--In carrying out this
subsection, the Secretary may--
``(A) conduct consumer education and outreach (including
consumer and awareness surveys);
``(B) conduct outreach to and support for State and local
governments interested in implementing biobased purchasing
programs;
``(C) partner with industry and nonprofit groups to produce
educational and outreach materials and conduct educational
and outreach events;
``(D) sponsor special conferences and events to bring
together buyers and sellers of biobased products; and
``(E) support pilot and demonstration projects.'';
(5) in subsection (h) (as redesignated by paragraph (3))--
(A) in paragraph (2)--
(i) in the matter preceding subparagraph (A) by striking
``The report'' and inserting ``Each report under paragraph
(1)'';
(ii) in subparagraph (A), by striking ``and'' at the end;
(iii) in subparagraph (B)(ii), by striking the period at
the end and inserting a semicolon; and
(iv) by adding at the end the following:
``(C) the progress made by other Federal agencies in
compliance with the biobased procurement requirements,
including the quantity of purchases made; and
``(D) the status of outreach, educational, and promotional
activities carried out by the Secretary under subsection (d),
including the attainment of specific milestones and overall
results.''; and
(B) by adding at the end the following:
``(3) Economic impact study and report.--
``(A) In general.--The Secretary shall conduct a study to
assess the economic impact of the biobased products industry,
including--
``(i) the quantity of biobased products sold;
``(ii) the value of the biobased products;
``(iii) the quantity of jobs created;
``(iv) the quantity of petroleum displaced;
``(v) other environmental benefits; and
``(vi) areas in which the use or manufacturing of biobased
products could be more effectively used, including
identifying any technical and economic obstacles and
recommending how those obstacles can be overcome.
``(B) Report.--Not later than 180 days after the date of
enactment of this subparagraph, the Secretary shall submit to
Congress a report describing the results of the study
conducted under subparagraph (A).''.
(6) by inserting after subsection (g) (as redesignated by
paragraph (3)) the following:
``(h) Forest Products Laboratory Coordination.--In
determining whether products are eligible for the `USDA
Certified Biobased Product' label, the Secretary (acting
through the Forest Products Laboratory) shall--
``(1) review and approve forest-related products for which
an application is submitted for the program;
``(2) expedite the approval of innovative products
resulting from technology developed by the Forest Products
Laboratory or partners of the Laboratory; and
``(3) provide appropriate technical assistance to
applicants, as determined by the Secretary.''; and
(7) in subsection (j) (as redesignated by paragraph (3))--
(A) in the heading of paragraph (1), by inserting ``for
fiscal years 2008 through 2012'' after ``funding'';
(B) in the heading of paragraph (2), by inserting ``for
fiscal years 2009 through 2012'' after ``funding''; and
(C) by adding at the end the following:
``(3) Fiscal years 2013 through 2017.--There is authorized
to be appropriated to carry out this section $2,000,000 for
each of fiscal years 2013 through 2017.
``(4) Mandatory funding for fiscal years 2013 through
2017.--Of the funds of the Commodity Credit Corporation, the
Secretary shall use to carry out this section $3,000,000 for
each of fiscal years 2013 through 2017.''.
(b) Conforming Amendment.--Section 944(c)(2)(A) of the
Energy Policy Act of 2005 (42 U.S.C. 16253(c)(2)(A)) is
amended by striking ``section 9002(h)(1)'' and inserting
``section 9002(b)''.
SEC. 9003. BIOREFINERY, RENEWABLE CHEMICAL, AND BIOBASED
PRODUCT MANUFACTURING ASSISTANCE.
(a) Program Adjustments.--
(1) In general.--Section 9003 of the Farm Security and
Rural Investment Act of 2002 (7 U.S.C. 8103) is amended--
(A) in the section heading, by inserting ``, RENEWABLE
CHEMICAL, AND BIOBASED PRODUCT MANUFACTURING'' after
``BIOREFINERY'';
(B) in subsection (a), in the matter preceding paragraph
(1), by inserting ``renewable chemicals, and biobased product
manufacturing'' after ``advanced biofuels,'';
(C) in subsection (b)--
(i) by redesignating paragraphs (1) and (2) as paragraphs
(2) and (3), respectively; and
(ii) by inserting before paragraph (2) (as so redesignated)
the following:
``(1) Biobased product manufacturing.--The term `biobased
product manufacturing' means development, construction, and
retrofitting of technologically new commercial-scale
processing and manufacturing equipment and required
facilities that will be used to convert renewable chemicals
and other biobased outputs of biorefineries into end-user
products on a commercial scale.''; and
(D) in subsection (c)--
(i) in paragraph (1), by striking ``and'' at the end;
(ii) in paragraph (2), by striking the period at the end
and inserting ``; and''; and
(iii) by adding at the end the following:
``(3) grants and loan guarantees to fund the development
and construction of renewable chemical and biobased product
manufacturing facilities.''.
(2) Effective date.--The amendments made by paragraph (1)
shall take effect on October 1, 2012.
(b) Funding.--Section 9003(h) of the Farm Security and
Rural Investment Act of 2002 (7 U.S.C. 8103(h)) is amended--
[[Page S4089]]
(1) by striking paragraph (1) and inserting the following:
``(1) Mandatory funding.--
``(A) In general.--Subject to subparagraph (B), of the
funds of the Commodity Credit Corporation, the Secretary
shall use for the cost of loan guarantees under this section,
to remain available until expended--
``(i) $100,000,000 for fiscal year 2013; and
``(ii) $58,000,000 for each of fiscal years 2014 and 2015.
``(B) Biobased product manufacturing.--Of the total amount
of funds made available for the period of fiscal years 2013
through 2015 under subparagraph (A), the Secretary use for
the cost of loan guarantees under this section not more than
$25,000,000 to promote biobased product manufacturing.''; and
(2) in paragraph (2), by striking ``2012'' and inserting
``2017''.
SEC. 9004. REPEAL OF REPOWERING ASSISTANCE PROGRAM AND
TRANSFER OF REMAINING FUNDS.
(a) Repeal.--Subject to subsection (b), section 9004 of the
Farm Security and Rural Investment Act of 2002 (7 U.S.C.
8104) is repealed.
(b) Use of Remaining Funding for Rural Energy for America
Program.--Funds made available pursuant to subsection (d) of
section 9004 of the Farm Security and Rural Investment Act of
2002 (7 U.S.C. 8104) that are unobligated on the day before
the date of enactment of this section shall--
(1) remain available until expended;
(2) be used by the Secretary of Agriculture to carry out
financial assistance for energy efficiency improvements and
renewable energy systems under section 9007(a)(2) of the Farm
Security and Rural Investment Act of 2002 (7 U.S.C.
8107(a)(2)); and
(3) be in addition to any other funds made available to
carry out that program.
SEC. 9005. BIOENERGY PROGRAM FOR ADVANCED BIOFUELS.
Section 9005(g) of the Farm Security and Rural Investment
Act of 2002 (7 U.S.C. 8105(g)) is amended--
(1) in the heading of paragraph (1), by inserting ``for
fiscal years 2009 through 2012'' after ``funding'';
(2) in the heading of paragraph (2), by inserting ``for
fiscal years 2009 through 2012'' after ``funding'';
(3) by redesignating paragraph (3) as paragraph (4); and
(4) by inserting after paragraph (2) the following:
``(3) Fiscal years 2013 through 2017.--There is authorized
to be appropriated to carry out this section $20,000,000 for
each of fiscal years 2013 through 2017.''.
SEC. 9006. BIODIESEL FUEL EDUCATION PROGRAM.
Section 9006(d) of the Farm Security and Rural Investment
Act of 2002 (7 U.S.C. 8106(d)) is amended--
(1) by striking ``(d) Funding.--Of the funds'' and
inserting ``(d) Funding.--
``(1) Fiscal years 2008 through 2012.--Of the funds''; and
(2) by adding at the end the following:
``(2) Fiscal years 2013 through 2017.--There is authorized
to be appropriated to carry out this section $1,000,000 for
each of fiscal years 2013 through 2017.
``(3) Mandatory funding for fiscal years 2013 through
2017.--Of the funds of the Commodity Credit Corporation, the
Secretary shall use to carry out this section $1,000,000 for
each of fiscal years 2013 through 2017.''.
SEC. 9007. RURAL ENERGY FOR AMERICA PROGRAM.
(a) Program Adjustments.--
(1) In general.--Section 9007 of the Farm Security and
Rural Investment Act of 2002 (7 U.S.C. 8107) is amended--
(A) in subsection (b)(2)--
(i) in subparagraph (C), by striking ``and'' at the end;
(ii) by redesignating subparagraph (D) as subparagraph (E);
and
(iii) by inserting after subparagraph (C) the following:
``(D) a council (as defined in section 1528 of the
Agriculture and Food Act of 1981 (16 U.S.C. 3451)); and'';
and
(B) in subsection (c)--
(i) in paragraph (1)(A), by inserting ``, such as for
agricultural and associated residential purposes'' after
``electricity'';
(ii) by striking paragraph (3);
(iii) by redesignating paragraph (4) as paragraph (3);
(iv) in paragraph (3) (as so redesignated), by striking
subparagraph (A) and inserting the following:
``(A) Grants.--The amount of a grant under this subsection
shall not exceed the lesser of--
``(i) $500,000; and
``(ii) 25 percent of the cost of the activity carried out
using funds from the grant.''; and
(v) by adding at the end the following:
``(4) Tiered application process.--
``(A) In general.--In providing loan guarantees and grants
under this subsection, the Secretary shall use a 3-tiered
application process that reflects the size of proposed
projects in accordance with this paragraph.
``(B) Tier 1.--The Secretary shall establish a separate
application process for projects for which the cost of the
activity funded under this subsection is not more than
$80,000.
``(C) Tier 2.--The Secretary shall establish a separate
application process for projects for which the cost of the
activity funded under this subsection is greater than $80,000
but less than $200,000.
``(D) Tier 3.--The Secretary shall establish a separate
application process for projects for which the cost of the
activity funded under this subsection is equal to or greater
than $200,000.
``(E) Application process.--The Secretary shall establish
an application, evaluation, and oversight process that is the
most simplified for tier I projects and more comprehensive
for each subsequent tier.''.
(2) Effective date.--The amendments made by paragraph (1)
shall take effect on October 1, 2012.
(b) Funding.--Section 9007(g) of the Farm Security and
Rural Investment Act of 2002 (7 U.S.C. 8107(g)) is amended--
(1) in the heading of paragraph (1), by inserting ``for
fiscal years 2009 through 2012'' after ``funding'';
(2) in the heading of paragraph (2), by inserting ``for
fiscal years 2009 through 2012'' after ``funding'';
(3) in the heading of paragraph (3), by inserting ``for
fiscal years 2009 through 2012'' after ``funding''; and
(4) by adding at the end the following:
``(4) Fiscal years 2013 through 2017.--There is authorized
to be appropriated to carry out this section $20,000,000 for
each of fiscal years 2013 through 2017.
``(5) Mandatory funding for fiscal years 2013 through
2017.--Of the funds of the Commodity Credit Corporation, the
Secretary shall use to carry out this section $48,200,000 for
each of fiscal years 2013 through 2017.''.
SEC. 9008. BIOMASS RESEARCH AND DEVELOPMENT.
Section 9008(h) of the Farm Security and Rural Investment
Act of 2002 (7 U.S.C. 8108(h)) is amended--
(1) in the heading of paragraph (1), by inserting ``for
fiscal years 2009 through 2012'' after ``funding'';
(2) in the heading of paragraph (2), by inserting ``for
fiscal years 2009 through 2012'' after ``funding''; and
(3) by adding at the end the following:
``(3) Fiscal years 2013 through 2017.--There is authorized
to be appropriated to carry out this section $30,000,000 for
each of fiscal years 2013 through 2017.
``(4) Mandatory funding for fiscal years 2013 through
2017.--Of the funds of the Commodity Credit Corporation, the
Secretary shall use to carry out this section $26,000,000 for
each of fiscal years 2013 through 2017.''.
SEC. 9009. FEEDSTOCK FLEXIBILITY PROGRAM FOR BIOENERGY
PRODUCERS.
Section 9010(b) of the Farm Security and Rural Investment
Act of 2002 (7 U.S.C. 8110(b)) is amended--
(1) in paragraph (1)(A), by striking ``2012'' and inserting
``2017''; and
(2) in paragraph (2)(A), by striking ``2012'' and inserting
``2017''.
SEC. 9010. BIOMASS CROP ASSISTANCE PROGRAM.
Section 9011 of the Farm Security and Rural Investment Act
of 2002 (7 U.S.C. 8111) is amended to read as follows:
``SEC. 9011. BIOMASS CROP ASSISTANCE PROGRAM.
``(a) Definitions.--In this section:
``(1) BCAP.--The term `BCAP' means the Biomass Crop
Assistance Program established under this section.
``(2) BCAP project area.--The term `BCAP project area'
means an area that--
``(A) has specified boundaries that are submitted to the
Secretary by the project sponsor and subsequently approved by
the Secretary;
``(B) includes producers with contract acreage that will
supply a portion of the renewable biomass needed by a biomass
conversion facility; and
``(C) is physically located within an economically
practicable distance from the biomass conversion facility.
``(3) Contract acreage.--The term `contract acreage' means
eligible land that is covered by a BCAP contract entered into
with the Secretary.
``(4) Eligible crop.--
``(A) In general.--The term `eligible crop' means a crop of
renewable biomass.
``(B) Exclusions.--The term `eligible crop' does not
include--
``(i) any crop that is eligible to receive payments under
title I of the Food, Conservation, and Energy Act of 2008 (7
U.S.C. 8702 et seq.) or an amendment made by that title;
``(ii) any plant that is invasive or noxious or species or
varieties of plants that credible risk assessment tools or
other credible sources determine are potentially invasive, as
determined by the Secretary in consultation with other
appropriate Federal or State departments and agencies; or
``(iii) algae.
``(5) Eligible land.--
``(A) In general.--The term `eligible land' includes--
``(i) agricultural and nonindustrial private forest lands
(as defined in section 5(c) of the Cooperative Forestry
Assistance Act of 1978 (16 U.S.C. 2103a(c))); and
``(ii) land enrolled in the agricultural conservation
easement program established under subtitle H of title XII of
the Food Security Act of 1985.
``(B) Exclusions.--The term `eligible land' does not
include--
``(i) Federal- or State-owned land;
``(ii) land that is native sod, as of the date of enactment
of the Food, Conservation, and Energy Act of 2008 (7 U.S.C.
8701 et seq.);
``(iii) land enrolled in the conservation reserve program
established under subchapter B of chapter 1 of subtitle D of
title XII of the
[[Page S4090]]
Food Security Act of 1985 (16 U.S.C. 3831 et seq.);
``(iv) land enrolled in the Agricultural Conservation
Easement Program established under subtitle H of title XII of
that Act; or
``(v) land enrolled in the conservation reserve program or
the Agricultural Conservation Easement Program under a
contract that will expire at the end of the current fiscal
year.
``(6) Eligible material.--
``(A) In general.--The term `eligible material' means
renewable biomass harvested directly from the land, including
crop residue from any crop that is eligible to receive
payments under title I of the Agriculture Reform, Food, and
Jobs Act of 2012 or an amendment made by that title.
``(B) Inclusions.--The term `eligible material' shall only
include--
``(i) eligible material that is collected or harvested by
the eligible material owner--
``(I) directly from--
``(aa) National Forest System;
``(bb) Bureau of Land Management land;
``(cc) non-Federal land; or
``(dd) land owned by an individual Indian or Indian tribe
that is held in trust by the United States for the benefit of
the individual Indian or Indian tribe or subject to a
restriction against alienation imposed by the United States;
``(II) in a manner that is consistent with--
``(aa) a conservation plan;
``(bb) a forest stewardship plan; or
``(cc) a plan that the Secretary determines is equivalent
to a plan described in item (aa) or (bb) and consistent with
Executive Order 13112 (42 U.S.C. 4321 note; relating to
invasive species);
``(ii) if woody eligible material, woody eligible material
that is produced on land other than contract acreage that--
``(I) is a byproduct of a preventative treatment that is
removed to reduce hazardous fuel or to reduce or contain
disease or insect infestation; and
``(II) if harvested from Federal land, is harvested in
accordance with section 102(e) of the Healthy Forests
Restoration Act of 2003 (16 U.S.C. 6512(e)); and
``(iii) eligible material that is delivered to a qualified
biomass conversion facility to be used for heat, power,
biobased products, research, or advanced biofuels.
``(C) Exclusions.--The term `eligible material' does not
include--
``(i) material that is whole grain from any crop that is
eligible to receive payments under title I of the Agriculture
Reform, Food, and Jobs Act of 2012 or an amendment made by
that title, including--
``(I) barley, corn, grain sorghum, oats, rice, or wheat;
``(II) honey;
``(III) mohair;
``(IV) oilseeds, including canola, crambe, flaxseed,
mustard seed, rapeseed, safflower seed, soybeans, sesame
seed, and sunflower seed;
``(V) peanuts;
``(VI) pulse;
``(VII) chickpeas, lentils, and dry peas;
``(VIII) dairy products;
``(IX) sugar; and
``(X) wool and cotton boll fiber;
``(ii) animal waste and byproducts, including fat, oil,
grease, and manure;
``(iii) food waste and yard waste;
``(iv) algae;
``(v) woody eligible material that--
``(I) is removed outside contract acreage; and
``(II) is not a byproduct of a preventative treatment to
reduce hazardous fuel or to reduce or contain disease or
insect infestation;
``(vi) any woody eligible material collected or harvested
outside contract acreage that would otherwise be used for
existing market products; or
``(vii) bagasse.
``(7) Producer.--The term `producer' means an owner or
operator of contract acreage that is physically located
within a BCAP project area.
``(8) Project sponsor.--The term `project sponsor' means--
``(A) a group of producers; or
``(B) a biomass conversion facility.
``(9) Socially disadvantaged farmer or rancher.--The term
`socially disadvantaged farmer or rancher' has the meaning
given the term in section 2501(e) of the Food, Agriculture,
Conservation, and Trade Act of 1990 (7 U.S.C. 2279(e)).
``(b) Establishment and Purpose.--The Secretary shall
establish and administer a Biomass Crop Assistance Program
to--
``(1) support the establishment and production of eligible
crops for conversion to bioenergy in selected BCAP project
areas; and
``(2) assist agricultural and forest land owners and
operators with the collection, harvest, storage, and
transportation of eligible material for use in a biomass
conversion facility.
``(c) BCAP Project Area.--
``(1) In general.--The Secretary shall provide financial
assistance to a producer of an eligible crop in a BCAP
project area.
``(2) Selection of project areas.--
``(A) In general.--To be considered for selection as a BCAP
project area, a project sponsor shall submit to the Secretary
a proposal that, at a minimum, includes--
``(i) a description of the eligible land and eligible crops
of each producer that will participate in the proposed BCAP
project area;
``(ii) a letter of commitment from a biomass conversion
facility that the facility will use the eligible crops
intended to be produced in the proposed BCAP project area;
``(iii) evidence that the biomass conversion facility has
sufficient equity available, as determined by the Secretary,
if the biomass conversion facility is not operational at the
time the proposal is submitted to the Secretary; and
``(iv) any other information about the biomass conversion
facility or proposed biomass conversion facility that the
Secretary determines necessary for the Secretary to be
reasonably assured that the plant will be in operation by the
date on which the eligible crops are ready for harvest.
``(B) Bcap project area selection criteria.--In selecting
BCAP project areas, the Secretary shall consider--
``(i) the volume of the eligible crops proposed to be
produced in the proposed BCAP project area and the
probability that those crops will be used for the purposes of
the BCAP;
``(ii) the volume of renewable biomass projected to be
available from sources other than the eligible crops grown on
contract acres;
``(iii) the anticipated economic impact in the proposed
BCAP project area;
``(iv) the opportunity for producers and local investors to
participate in the ownership of the biomass conversion
facility in the proposed BCAP project area;
``(v) the participation rate by--
``(I) beginning farmers or ranchers (as defined in
accordance with section 343(a) of the Consolidated Farm and
Rural Development Act (7 U.S.C. 1991(a))); or
``(II) socially disadvantaged farmers or ranchers;
``(vi) the impact on soil, water, and related resources;
``(vii) the variety in biomass production approaches within
a project area, including (as appropriate)--
``(I) agronomic conditions;
``(II) harvest and postharvest practices; and
``(III) monoculture and polyculture crop mixes;
``(viii) the range of eligible crops among project areas;
and
``(ix) any additional information that the Secretary
determines to be necessary.
``(3) Contract.--
``(A) In general.--On approval of a BCAP project area by
the Secretary, each producer in the BCAP project area shall
enter into a contract directly with the Secretary.
``(B) Minimum terms.--At a minimum, a contract under this
subsection shall include terms that cover--
``(i) an agreement to make available to the Secretary, or
to an institution of higher education or other entity
designated by the Secretary, such information as the
Secretary considers to be appropriate to promote the
production of eligible crops and the development of biomass
conversion technology;
``(ii) compliance with the highly erodible land
conservation requirements of subtitle B of title XII of the
Food Security Act of 1985 (16 U.S.C. 3811 et seq.) and the
wetland conservation requirements of subtitle C of title XII
of that Act (16 U.S.C. 3821 et seq.);
``(iii) the implementation of (as determined by the
Secretary)--
``(I) a conservation plan;
``(II) a forest stewardship plan; or
``(III) a plan that is equivalent to a conservation or
forest stewardship plan; and
``(iv) any additional requirements that Secretary
determines to be necessary.
``(C) Duration.--A contract under this subsection shall
have a term of not more than--
``(i) 5 years for annual and perennial crops; or
``(ii) 15 years for woody biomass.
``(4) Relationship to other programs.--In carrying out this
subsection, the Secretary shall provide for the preservation
of cropland base and yield history applicable to the land
enrolled in a BCAP contract.
``(5) Payments.--
``(A) In general.--The Secretary shall make establishment
and annual payments directly to producers to support the
establishment and production of eligible crops on contract
acreage.
``(B) Amount of establishment payments.--
``(i) In general.--Subject to clause (ii), the amount of an
establishment payment under this subsection shall be not more
than 50 percent of the costs of establishing an eligible
perennial crop covered by the contract but not to exceed $500
per acre, including--
``(I) the cost of seeds and stock for perennials;
``(II) the cost of planting the perennial crop, as
determined by the Secretary; and
``(III) in the case of nonindustrial private forestland,
the costs of site preparation and tree planting.
``(ii) Socially disadvantages farmers or ranchers.--In the
case of socially disadvantaged farmers or ranchers, the costs
of establishment may not exceed $750 per acre.
``(C) Amount of annual payments.--
``(i) In general.--Subject to clause (ii), the amount of an
annual payment under this subsection shall be determined by
the Secretary.
``(ii) Reduction.--The Secretary shall reduce an annual
payment by an amount determined to be appropriate by the
Secretary, if--
``(I) an eligible crop is used for purposes other than the
production of energy at the biomass conversion facility;
``(II) an eligible crop is delivered to the biomass
conversion facility;
``(III) the producer receives a payment under subsection
(d);
[[Page S4091]]
``(IV) the producer violates a term of the contract; or
``(V) the Secretary determines a reduction is necessary to
carry out this section.
``(D) Exclusion.--The Secretary shall not make any BCAP
payments on land for which payments are received under the
conservation reserve program established under subchapter B
of chapter 1 of subtitle D of title XII of the Food Security
Act of 1985 (16 U.S.C. 3831 et seq.) or the agricultural
conservation easement program established under subtitle H of
title XII of that Act.
``(d) Assistance With Collection, Harvest, Storage, and
Transportation.--
``(1) In general.--The Secretary shall make a payment for
the delivery of eligible material to a biomass conversion
facility to--
``(A) a producer of an eligible crop that is produced on
BCAP contract acreage; or
``(B) a person with the right to collect or harvest
eligible material, regardless of whether the eligible
material is produced on contract acreage.
``(2) Payments.--
``(A) Costs covered.--A payment under this subsection shall
be in an amount described in subparagraph (B) for--
``(i) collection;
``(ii) harvest;
``(iii) storage; and
``(iv) transportation to a biomass conversion facility.
``(B) Amount.--Subject to paragraph (3), the Secretary may
provide matching payments at a rate of up to $1 for each $1
per ton provided by the biomass conversion facility, in an
amount not to exceed $20 per dry ton for a period of 4 years.
``(3) Limitation on assistance for bcap contract acreage.--
As a condition of the receipt of an annual payment under
subsection (c), a producer receiving a payment under this
subsection for collection, harvest, storage, or
transportation of an eligible crop produced on BCAP acreage
shall agree to a reduction in the annual payment.
``(e) Report.--Not later than 4 years after the date of
enactment of the Agriculture Reform, Food, and Jobs Act of
2012, the Secretary shall submit to the Committee on
Agriculture of the House of Representatives and the Committee
on Agriculture, Nutrition, and Forestry of the Senate a
report on the dissemination by the Secretary of the best
practice data and information gathered from participants
receiving assistance under this section.
``(f) Funding.--
``(1) In general.--Of the funds of the Commodity Credit
Corporation, the Secretary shall use to carry out this
section $38,600,000 for each of fiscal years 2013 through
2017.
``(2) Collection, harvest, storage, and transportation
payments.--Of the amount made available under paragraph (1)
for each fiscal year, the Secretary shall use not less than
10 percent, nor more than 50 percent, of the amount to make
collection, harvest, transportation, and storage payments
under subsection (d)(2).''.
SEC. 9011. REPEAL OF FOREST BIOMASS FOR ENERGY.
Section 9012 of the Farm Security and Rural Investment Act
of 2002 (7 U.S.C. 8112) is repealed.
SEC. 9012. COMMUNITY WOOD ENERGY PROGRAM.
Section 9013(e) of the Farm Security and Rural Investment
Act of 2002 (7 U.S.C. 8113(e)) is amended by inserting before
the period at the end ``and $5,000,000 for each of fiscal
years 2013 through 2017''.
SEC. 9013. REPEAL OF RENEWABLE FERTILIZER STUDY.
Section 9003 of the Food, Conservation, and Energy Act of
2008 (Public Law 110 246; 122 Stat. 2096) is repealed.
TITLE X--HORTICULTURE
SEC. 10001. SPECIALTY CROPS MARKET NEWS ALLOCATION.
Section 10107(b) of the Food, Conservation, and Energy Act
of 2008 (7 U.S.C. 1622b(b)) is amended by striking ``2012''
and inserting ``2017''.
SEC. 10002. REPEAL OF GRANT PROGRAM TO IMPROVE MOVEMENT OF
SPECIALTY CROPS.
Section 10403 of the Food, Conservation, and Energy Act of
2008 (7 U.S.C. 1622c) is repealed.
SEC. 10003. FARMERS MARKET AND LOCAL FOOD PROMOTION PROGRAM.
Section 6 of the Farmer-to-Consumer Direct Marketing Act of
1976 (7 U.S.C. 3005) is amended--
(1) in the section heading, by adding ``and Local Food''
after ``market'';
(2) in subsection (a)--
(A) by inserting ``and Local Food'' after ``Market'';
(B) by striking ``farmers' markets and to promote''; and
(C) by inserting ``and local food capacity development''
before the period at the end;
(3) in subsection (b), by striking paragraph (1) and
inserting the following:
``(1) In general.--The purposes of the Program are to
increase domestic consumption of and access to locally and
regionally produced agricultural products by developing,
improving, expanding, and providing outreach, training, and
technical assistance to, or assisting in the development,
improvement and expansion of--
``(A) domestic farmers' markets, roadside stands,
community-supported agriculture programs, agritourism
activities, and other direct producer-to-consumer market
opportunities; and
``(B) local and regional food enterprises that are not
direct producer-to-consumer markets but process, distribute,
aggregate, store, and market locally or regionally produced
food products.'';
(4) in subsection (c)(1)--
(A) by inserting ``or other business entity'' after
``cooperative''; and
(B) by inserting ``, including a community supported
agriculture network or association'' after ``association'';
(5) by redesignating subsection (e) as subsection (f);
(6) by inserting after subsection (d) the following:
``(e) Priorities.--In providing grants under the Program,
priority shall be given to applications that include projects
that--
``(1) benefit underserved communities;
``(2) develop market opportunities for small and mid-sized
farm and ranch operations; and
``(3) include a strategic plan to maximize the use of funds
to build capacity for local and regional food systems in a
community.'';
(7) in subsection (f) (as redesignated by paragraph (5))--
(A) in paragraph (1)--
(i) in subparagraph (B), by striking ``and'' after the
semicolon at the end;
(ii) in subparagraph (C), by striking the period at the end
and inserting ``; and''; and
(iii) by adding at the end the following:
``(D) $20,000,000 for each of fiscal years 2013 through
2017.'';
(B) by striking paragraphs (2) and (4);
(C) by redesignating paragraph (3) as paragraph (4);
(D) by inserting after paragraph (1) the following:
``(2) Authorization of appropriations.--In addition to
funds made available under paragraph (1), there is authorized
to be appropriated to carry out this section $20,000,000 for
each of fiscal years 2013 through 2017.
``(3) Use of funds.--
``(A) In general.--Of the funds made available to carry out
the Program for each fiscal year, 50 percent shall be used
for the purposes described in subsection (b)(1)(A) and 50
percent shall be used for the purposes described in
subsection (b)(1)(B).
``(B) Cost share.--To be eligible to receive a grant for a
project described in subsection (b)(1)(B), a recipient shall
provide a match in the form of cash or in-kind contributions
in an amount equal to 25 percent of the total cost of the
project.''; and
(E) by adding at the end the following:
``(5) Administrative expenses.--Not more than 10 percent of
the total amount made available to carry out this section for
a fiscal year may be used for administrative expenses.
``(6) Limitations.--An eligible entity may not use a grant
or other assistance provided under the Program for the
purchase, construction, or rehabilitation of a building or
structure.''.
SEC. 10004. STUDY ON LOCAL FOOD PRODUCTION AND PROGRAM
EVALUATION.
(a) In General.--The Secretary shall--
(1) collect data on the production and marketing of locally
or regionally produced agricultural food products;
(2) facilitate interagency collaboration and data sharing
on programs related to local and regional food systems; and
(3) monitor the effectiveness of programs designed to
expand or facilitate local food systems.
(b) Requirements.--In carrying out this section, the
Secretary shall, at a minimum--
(1) collect and distribute comprehensive reporting of
prices of locally or regionally produced agricultural food
products;
(2) conduct surveys and analysis and publish reports
relating to the production, handling, distribution, retail
sales, and trend studies (including consumer purchasing
patterns) of or on locally or regionally produced
agricultural food products;
(3) evaluate the effectiveness of existing programs in
growing local and regional food systems, including--
(A) the impact of local food systems on job creation and
economic development;
(B) the level of participation in the Farmers' Market and
Local Food Promotion Program established under section 6 of
the Farmer-to-Consumer Direct Marketing Act of 1976 (7 U.S.C.
3005), including the percentage of projects funded in
comparison to applicants and the types of eligible entities
receiving funds;
(C) the ability for participants to leverage private
capital and a synopsis of the places from which non-Federal
funds are derived; and
(D) any additional resources required to aid in the
development or expansion of local and regional food systems;
(4) expand the Agricultural Resource Management Survey to
include questions on locally or regionally produced
agricultural food products; and
(5) seek to establish or expand private-public partnerships
to facilitate, to the maximum extent practicable, the
collection of data on locally or regionally produced
agricultural food products, including the development of a
nationally coordinated and regionally balanced evaluation of
the redevelopment of locally or regionally produced food
systems.
(c) Report.--Not later than 1 year after the date of
enactment of this Act and annually thereafter, the Secretary
shall submit to the Committee on Agriculture of the House of
Representatives and the Committee on Agriculture, Nutrition,
and Forestry of the Senate a report describing the progress
that has been made in implementing this
[[Page S4092]]
section and identifying any additional needs related to
developing local and regional food systems.
SEC. 10005. ORGANIC AGRICULTURE.
(a) Organic Production and Market Data Initiatives.--
Section 7407 of the Farm Security and Rural Investment Act of
2002 (7 U.S.C. 5925c) is amended--
(1) in subsection (c)--
(A) in the matter preceding paragraph (1), by inserting
``and annually thereafter'' after ``this subsection'';
(B) in paragraph (1), by striking ``and'' at the end;
(C) by redesignating paragraph (2) as paragraph (3); and
(D) by inserting after paragraph (1) the following:
``(2) describes how data collection agencies (such as the
Agricultural Marketing Service and the National Agricultural
Statistics Service) are coordinating with data user agencies
(such as the Risk Management Agency) to ensure that data
collected under this section can be used by data user
agencies, including by the Risk Management Agency to offer
price elections for all organic crops; and''; and
(2) in subsection (d)--
(A) by redesignating paragraph (2) as paragraph (3);
(B) by inserting after paragraph (1) the following:
``(2) Mandatory funding.--In addition to any funds
available under paragraph (1), of the funds of the Commodity
Credit Corporation, the Secretary shall use to carry out this
section $5,000,000, to remain available until expended.'';
and
(C) in paragraph (3) (as redesignated by subparagraph
(A))--
(i) by striking ``paragraph (1)'' and inserting
``paragraphs (1) and (2)''; and
(ii) by striking ``2012'' and inserting ``2017''.
(b) Modernization and Technology Upgrade for National
Organic Program.--Section 2123 of the Organic Foods
Production Act of 1990 (7 U.S.C. 6522) is amended--
(1) in subsection (b)--
(A) in paragraph (5), by striking ``and'' at the end;
(B) by redesignating paragraph (6) as paragraph (7); and
(C) by inserting after paragraph (5) the following:
``(6) $15,000,000 for each of fiscal years 2013 through
2017; and''; and
(2) by adding at the end the following:
``(c) Modernization and Technology Upgrade for National
Organic Program.--
``(1) In general.--The Secretary shall modernize database
and technology systems of the national organic program.
``(2) Funding.--Of the funds of the Commodity Credit
Corporation and in addition to any other funds made available
for that purpose, the Secretary shall make available to carry
out this subsection $5,000,000 in fiscal year 2013, to remain
available until expended.
``(d) Report.--Not later than 180 days after the date of
enactment of this subsection, the Secretary shall submit to
the Committee on Agriculture of the House of Representatives
and the Committee on Agriculture, Nutrition, and Forestry of
the Senate a report that--
``(1) describes the efforts of the Secretary to ensure that
activities conducted through commodity research and promotion
programs adequately reflect the priorities of all members of
the applicable orders; and
``(2) includes an assessment of the feasibility of
establishing an organic research and promotion program,
including any current barriers to establishment and
challenges related to implementation.''.
SEC. 10006. FOOD SAFETY EDUCATION INITIATIVES.
Section 10105(c) of the Food, Conservation, and Energy Act
of 2008 (7 U.S.C. 7655a(c)) is amended by striking ``2012''
and inserting ``2017''.
SEC. 10007. COORDINATED PLANT MANAGEMENT PROGRAM.
(a) In General.--Section 420 of the Plant Protection Act (7
U.S.C. 7721) is amended--
(1) by striking the section heading and inserting
``coordinated plant management program.'';
(2) by redesignating subsection (e) as subsection (f); and
(3) by inserting after subsection (d) the following:
``(e) National Clean Plant Network.--
``(1) In general.--The Secretary shall establish a program
to be known as the `National Clean Plant Network' (referred
to in this subsection as the `Program').
``(2) Requirements.--Under the Program, the Secretary shall
establish a network of clean plant centers for diagnostic and
pathogen elimination services--
``(A) to produce clean propagative plant material; and
``(B) to maintain blocks of pathogen-tested plant material
in sites located throughout the United States.
``(3) Availability of clean plant source material.--Clean
plant source material produced or maintained under the
Program may be made available to--
``(A) a State for a certified plant program of the State;
and
``(B) private nurseries and producers.
``(4) Consultation and collaboration.--In carrying out the
Program, the Secretary shall--
``(A) consult with--
``(i) State departments of agriculture; and
``(ii) land-grant colleges and universities and NLGCA
Institutions (as those terms are defined in section 1404 of
the National Agricultural Research, Extension, and Teaching
Policy Act of 1977 (7 U.S.C. 3103)); and
``(B) to the extent practicable and with input from the
appropriate State officials and industry representatives, use
existing Federal or State facilities to serve as clean plant
centers.''.
(b) Funding.--Subsection (f) of section 420 of the Plant
Protection Act (7 U.S.C. 7721) (as redesignated by subsection
(a)(1)) is amended--
(1) in paragraph (3), by striking ``and'' at the end;
(2) in paragraph (4), by striking ``and each fiscal year
thereafter.'' and inserting a semicolon; and
(3) by adding at the end the following:
``(5) $60,000,000 for each of fiscal years 2013 through
2016; and
``(6) $65,000,000 for fiscal year 2017 and each fiscal year
thereafter.''.
(c) Repeal of Existing Provision.--Section 10202 of the
Food, Conservation, and Energy Act of 2008 (7 U.S.C. 7761) is
repealed.
(d) Clarification of Use of Funds for Technical
Assistance.--Section 420 of the Plant Protection Act (7
U.S.C. 7721) (as amended by subsection (a)) is amended by
adding at the end the following:
``(g) Relationship to Other Law.--The use of Commodity
Credit Corporation funds under this section to provide
technical assistance shall not be considered an allotment or
fund transfer from the Commodity Credit Corporation for
purposes of the limit on expenditures for technical
assistance imposed by section 11 of the Commodity Credit
Corporation Charter Act (15 U.S.C. 714i).''.
SEC. 10008. SPECIALTY CROP BLOCK GRANTS.
Section 101 of the Specialty Crops Competitiveness Act of
2004 (7 U.S.C. 1621 note; Public Law 108 465) is amended--
(1) in subsection (a)--
(A) by striking ``subsection (j)'' and inserting
``subsection (l)''; and
(B) by striking ``2012'' and inserting ``2017'';
(2) by striking subsection (b) and inserting the following:
``(b) Grants Based on Value and Acreage.--Subject to
subsection (c), in the case of each State with an application
for a grant for a fiscal year that is accepted by the
Secretary of Agriculture under subsection (f), the amount of
a grant for a fiscal year to a State under this section shall
bear the same ratio to the total amount made available under
subsection (l) for that fiscal year as--
``(1) the average of the most recent available value of
specialty crop production in the State and the acreage of
specialty crop production in the State, as demonstrated in
the most recent Census of Agriculture data; bears to
``(2) the average of the most recent available value of
specialty crop production in all States and the acreage of
specialty crop production in all States, as demonstrated in
the most recent Census of Agriculture data.'';
(3) by redesignating subsection (j) as subsection (l);
(4) by inserting after subsection (i) the following:
``(j) Multistate Projects.--
``(1) In general.--Not later than 180 days after the date
of enactment of the Agriculture Reform, Food, and Jobs Act of
2012, the Secretary of Agriculture shall issue guidance for
the purpose of making grants to multistate projects under
this section for projects involving--
``(A) food safety;
``(B) plant pests and disease;
``(C) crop-specific projects addressing common issues; and
``(D) any other area that furthers the purposes of this
section, as determined by the Secretary.
``(2) Funding.--Of the funds provided under subsection (l),
the Secretary of Agriculture may allocate for grants under
this subsection, to remain available until expended--
``(A) $1,000,000 for fiscal year 2013;
``(B) $2,000,000 for fiscal year 2014;
``(C) $3,000,000 for fiscal year 2015;
``(D) $4,000,000 for fiscal year 2016; and
``(E) $5,000,000 for fiscal year 2017.
``(k) Administration.--
``(1) Department.--The Secretary of Agriculture may not use
more than 3 percent of the funds made available to carry out
this section for a fiscal year for administrative expenses.
``(2) States.--A State receiving a grant under this section
may not use more than 8 percent of the funds received under
the grant for a fiscal year for administrative expenses.'';
and
(5) in subsection (l) (as redesignated by paragraph (3))--
(A) in paragraph (2), by striking ``and'' at the end;
(B) in paragraph (3), by striking the period at the end and
inserting ``; and''; and
(C) by adding at the end the following:
``(4) $70,000,000 for fiscal year 2013 and each fiscal year
thereafter.''.
SEC. 10009. RECORDKEEPING, INVESTIGATIONS, AND ENFORCEMENT.
The Organic Foods Production Act of 1990 is amended by
inserting after section 2120 (7 U.S.C. 6519) the following:
``SEC. 2120A. RECORDKEEPING, INVESTIGATIONS, AND ENFORCEMENT.
``(a) Recordkeeping.--
``(1) In general.--Except as otherwise provided in this
title, all persons, including producers, handlers, and
certifying agents, required to report information to the
Secretary under this title shall maintain, and
[[Page S4093]]
make available to the Secretary on the request of the
Secretary, all contracts, agreements, receipts, and other
records associated with the organic certification program
established by the Secretary under this title.
``(2) Duration of recordkeeping requirement.--A record
covered by paragraph (1) shall be maintained--
``(A) by a person covered by this title, except for a
certifying agent, for a period of 5 years beginning on the
date of the creation of the record; and
``(B) by a certifying agent, for a period of 10 years
beginning on the date of the creation of the record.
``(b) Confidentiality.--
``(1) In general.--Subject to paragraph (2), and except as
otherwise directed by the Secretary or the Attorney General
for enforcement purposes, no officer, employee, or agent of
the United States shall make available to the public
information, statistics, or documents obtained from or made
available by any person under this title, other than in a
manner that ensures that confidentiality is preserved
regarding the identity of persons, including parties to a
contract, and proprietary business information.
``(2) Alleged violators and nature of actions.--The
Secretary may release the name of the alleged violator and
the nature of the actions triggering an order, suspension, or
revocation under subsection (e).
``(c) Investigation.--
``(1) In general.--The Secretary may take such
investigative actions as the Secretary considers to be
necessary to carry out this title--
``(A) to verify the accuracy of any information reported or
made available under this title; and
``(B) to determine, with regard to actions, practices, or
information required under this title, whether a person
covered by this title has committed, or will commit, a
violation of any provision of this title, including an order
or regulation promulgated by the Secretary.
``(2) Investigative powers.--The Secretary may administer
oaths and affirmations, subpoena witnesses, compel attendance
of witnesses, take evidence, and require the production of
any books, papers, and documents that are relevant to the
investigation.
``(d) Unlawful Act.--It shall be unlawful and a violation
of this title for any person covered by this title--
``(1) to fail or refuse to provide, or delay the timely
provision of, accurate information required by the Secretary
under this section;
``(2) to violate--
``(A) an order of the Secretary;
``(B) a suspension or revocation of the organic
certification of a producer or handler; or
``(C) a suspension or revocation of the accreditation of a
certifying agent; or
``(3) to sell, or attempt to sell, a product that is
represented as being organically produced under this title if
in fact the product has been produced or handled by an
operation that is not yet a certified organic producer or
handler under this title.
``(e) Enforcement.--
``(1) Order.--The Secretary may issue an order to stop the
sale of an agricultural product that is labeled or otherwise
represented as being organically produced--
``(A) until the product can be verified--
``(i) as meeting the national and State standards for
organic production and handling as provided in sections 2105
through 2114;
``(ii) as having been produced or handled without the use
of a prohibited substance listed under section 2118; and
``(iii) as being produced and handled by a certified
organic operation; and
``(B) if a person has committed an unlawful act with
respect to the product under subsection (d).
``(2) Certification or accreditation.--
``(A) Suspension.--
``(i) In general.--The Secretary may suspend the organic
certification of a producer or handler, or accreditation of a
certifying agent, for a period not to exceed 30 days, and may
renew the suspension for an additional period, under the
circumstances described in clause (ii).
``(ii) Actions triggering suspension.--The Secretary may
take the suspension or renewal actions described in clause
(i), if the Secretary has reason to believe that a person
producing or handling an agricultural product, or a
certifying agent, has violated or is violating any provision
of this title, including an order or regulation promulgated
under this title.
``(iii) Continuation of suspension through appeal.--If the
Secretary determines subsequent to an investigation that a
violation of this title by a person covered by this title has
occurred, the suspension shall remain in effect until the
Secretary issues a revocation of the certification of the
person or of the accreditation of the certifying agent,
covered by this title, after an expedited administrative
appeal under section 2121 has been completed.
``(B) Revocation.--After notice and opportunity for an
administrative appeal under section 2121, if a violation
described in subparagraph (A)(ii) is determined to have
occurred and is an unlawful act under subsection (d), the
Secretary shall revoke the organic certification of the
producer or handler, or the accreditation of the certifying
agent.
``(3) Violation of order or revocation.--A person who
violates an order to stop the sale of a product as an
organically produced product under paragraph (1), or a
revocation of certification or accreditation under paragraph
(2)(B), shall be subject to 1 or more of the penalties
provided in subsections (a) and (b) of section 2120.
``(f) Appeal.--
``(1) In general.--An order under subsection (e)(1), or a
revocation of certification or accreditation under subsection
(e)(2)(B) shall be final and conclusive unless the affected
person files an appeal of the order--
``(A) first, to the administrative appeals process
established under section 2121(a); and
``(B) second, if the affected person so elects, to a United
States district court as provided in section 2121(b) not
later than 30 days after the date of the determination under
subparagraph (A).
``(2) Standard.--An order under subsection (e)(1), or a
revocation of certification or accreditation under subsection
(e)(2)(B), shall be set aside only if the order, or the
revocation of certification or accreditation, is not
supported by substantial evidence.
``(g) Noncompliance.--
``(1) In general.--If a person covered by this title fails
to obey an order, or a revocation of certification or
accreditation, described in subsection (f)(2) after the order
or revocation has become final and conclusive or after the
appropriate United States district court has entered a final
judgment in favor of the Secretary, the United States may
apply to the appropriate United States district court for
enforcement of the order, or the revocation of certification
or accreditation.
``(2) Enforcement.--If the court determines that the order
or revocation was lawfully made and duly served and that the
person violated the order or revocation, the court shall
enforce the order or revocation.
``(3) Civil penalty.--If the court finds that the person
violated the order or revocation, the person shall be subject
to a civil penalty of not more than $10,000 for each
offense.''.
SEC. 10010. REPORT ON HONEY.
(a) In General.--Not later than 180 days after the date of
enactment of this Act, the Secretary, in consultation with
affected stakeholders, shall submit to the Commissioner of
Food and Drugs a report describing how an appropriate Federal
standard for the identity of honey would promote honesty and
fair dealing and would be in the interest of consumers, the
honey industry, and United States agriculture.
(b) Contents.--In preparing the report under subsection
(a), the Secretary shall take into consideration the March
2006 Standard of Identity citizens petition filed with the
Food and Drug Administration, including any current industry
amendments or clarifications necessary to update that 2006
petition.
SEC. 10011. EFFECTIVE DATE.
This title and the amendments made by this title take
effect on October 1, 2012.
TITLE XI--CROP INSURANCE
SEC. 11001. SUPPLEMENTAL COVERAGE OPTION.
(a) Availability of Supplemental Coverage Option.--Section
508(c) of the Federal Crop Insurance Act (7 U.S.C. 1508(c))
is amended by striking paragraph (3) and inserting the
following:
``(3) Yield and loss basis options.--A producer shall have
the option of purchasing additional coverage based on--
``(A)(i) an individual yield and loss basis; or
``(ii) an area yield and loss basis;
``(B) an individual yield and loss basis, supplemented with
coverage based on an area yield and loss basis to cover all
or a part of the deductible under the individual yield and
loss policy, as authorized in paragraph (4)(C); or
``(C) a margin basis alone or in combination with--
``(i) individual yield and loss coverage; or
``(ii) area yield and loss coverage.''.
(b) Level of Coverage.--Section 508(c) of the Federal Crop
Insurance Act (7 U.S.C. 1508(c)) is amended by striking
paragraph (4) and inserting the following:
``(4) Level of coverage.--
``(A) Dollar denomination and percentage of yield.--Except
as provided in subparagraph (C), the level of coverage--
``(i) shall be dollar denominated; and
``(ii) may be purchased at any level not to exceed 85
percent of the individual yield or 95 percent of the area
yield (as determined by the Corporation).
``(B) Information.--The Corporation shall provide producers
with information on catastrophic risk and additional coverage
in terms of dollar coverage (within the allowable limits of
coverage provided in this paragraph).
``(C) Supplemental coverage option.--
``(i) In general.--Notwithstanding subparagraph (A), in the
case of the supplemental coverage option described in
paragraph (3)(B), the Corporation shall offer producers the
opportunity to purchase coverage in combination with a policy
or plan of insurance offered under this subtitle that would
allow indemnities to be paid to a producer equal to all or
part of the deductible under the policy or plan of insurance,
if sufficient area data is available (as determined by the
Corporation).
``(ii) Trigger.--Coverage offered under this subparagraph
shall be triggered only if the losses in the area exceed 10
percent of normal levels (as determined by the Corporation).
``(iii) Coverage.--Subject to the trigger described in
clause (ii) and the deductible
[[Page S4094]]
imposed by clause (iv), coverage offered under this
subparagraph shall cover the first loss incurred by the
producer, not to exceed the difference between--
``(I) 100 percent; and
``(II) the coverage level selected by the producer for the
underlying policy or plan of insurance.
``(iv) Deductible.--Coverage offered under this
subparagraph shall be subject to a deductible in an amount
equal to--
``(I) in the case of a producer who participates in the
agriculture risk coverage program under section 1105(c) of
the Agriculture Reform, Food, and Jobs Act of 2012, 21
percent of the expected value of the crop of the producer
covered by the underlying policy or plan of insurance, as
determined by the Corporation; and
``(II) in the case of all other producers, 10 percent of
the expected value of the crop of the producer covered by the
underlying policy or plan of insurance, as determined by the
Corporation.
``(v) Calculation of premium.--Notwithstanding subsection
(d), the premium shall--
``(I) be sufficient to cover anticipated losses and a
reasonable reserve; and
``(II) include an amount for operating and administrative
expenses established in accordance with subsection
(k)(4)(F).''.
(c) Payment of Portion of Premium by Corporation.--Section
508(e)(2) of the Federal Crop Insurance Act (7 U.S.C.
1508(e)(2)) is amended by adding at the end the following:
``(H) In the case of the supplemental coverage option
authorized in subsection (c)(4)(C), the amount shall be equal
to the sum of--
``(i) 70 percent of the additional premium associated with
the coverage; and
``(ii) the amount determined under subsection
(c)(4)(C)(v)(II) for the coverage to cover operating and
administrative expenses.''.
(d) Conforming Amendment.--Section 508(k)(4)(F) of the
Federal Crop Insurance Act (7 U.S.C. 1508(k)(4)(F)) is
amended by inserting ``or authorized under subsection
(c)(4)(C)'' after ``of this subparagraph''.
(e) Effective Date.--The Federal Crop Insurance Corporation
shall begin to provide additional coverage based on an
individual yield and loss basis, supplemented with coverage
based on an area yield and loss basis, not later than for the
2013 crop year.
SEC. 11002. PREMIUM AMOUNTS FOR CATASTROPHIC RISK PROTECTION.
Section 508(d)(2) of the Federal Crop Insurance Act (7
U.S.C. 1508(d)(2)) is amended by striking subparagraph (A)
and inserting the following:
``(A) In the case of catastrophic risk protection, the
amount of the premium established by the Corporation for each
crop for which catastrophic risk protection is available
shall be reduced by the percentage equal to the difference
between the average loss ratio for the crop and 100 percent,
plus a reasonable reserve, as determined by the
Corporation.''.
SEC. 11003. PERMANENT ENTERPRISE UNIT.
Section 508(e)(5) of the Federal Crop Insurance Act (7
U.S.C. 1508(e)(5)) is amended by striking subparagraph (A)
and inserting the following:
``(A) In general.--The Corporation may pay a portion of the
premiums for plans or policies of insurance for which the
insurable unit is defined on a whole farm or enterprise unit
basis that is higher than would otherwise be paid in
accordance with paragraph (2).''.
SEC. 11004. ENTERPRISE UNITS FOR IRRIGATED AND NONIRRIGATED
CROPS.
Section 508(e)(5) of the Federal Crop Insurance Act (7
U.S.C. 1508(e)(5)) is amended by adding at the end the
following:
``(D) Nonirrigated crops.--Beginning with the 2013 crop
year, the Corporation shall make available separate
enterprise units for irrigated and nonirrigated acreages of
crops in counties.''.
SEC. 11005. DATA COLLECTION.
Section 508(g)(2) of the Federal Crop Insurance Act (7
U.S.C. 1508(g)(2)) is amended by adding at the end the
following:
``(E) Sources of yield data.--To determine yields under
this paragraph, the Corporation--
``(i) shall use county data collected by the Risk
Management Agency or the National Agricultural Statistics
Service, or both; or
``(ii) if sufficient county data is not available, may use
other data considered appropriate by the Secretary.''.
SEC. 11006. ADJUSTMENT IN ACTUAL PRODUCTION HISTORY TO
ESTABLISH INSURABLE YIELDS.
Section 508(g)(4)(B) of the Federal Crop Insurance Act (7
U.S.C. 1508(g)(4)(B)) is amended--
(1) in the matter preceding clause (i), by inserting ``for
the 2012 crop year or any prior crop year, or 70 percent of
the applicable transitional yield for the 2013 or any
subsequent crop year,'' after ``transitional yield''; and
(2) in clause (ii), by striking ``60 percent of the
applicable transitional yield'' and inserting ``the
applicable percentage of the transitional yield described in
this subparagraph''.
SEC. 11007. SUBMISSION AND REVIEW OF POLICIES.
Section 508(h)(1) of the Federal Crop Insurance Act (7
U.S.C. 1508(h)(1)) is amended--
(1) by redesignating subparagraphs (A) and (B) as clauses
(i) and (ii), respectively, and indenting appropriately;
(2) by striking ``(1) In general.--'' and inserting the
following:
``(1) Submission and review of policies.--
``(A) Submissions.--In addition''; and
(3) by adding at the end the following:
``(B) Review.--The Corporation shall review any policy
developed under section 522(c) or any pilot program developed
under section 523 and submit the policy or program to the
Board under this subsection if the Corporation, at the sole
discretion of the Corporation, finds that the policy or
program--
``(i) will likely result in a viable and marketable policy
consistent with this subsection;
``(ii) would provide crop insurance coverage in a
significantly improved form; and
``(iii) adequately protects the interests of producers.''.
SEC. 11008. BOARD REVIEW AND APPROVAL.
(a) Review and Approval by the Board.--Section 508(h) of
the Federal Crop Insurance Act (7 U.S.C. 1508(h)) is amended
by striking paragraph (3) and inserting the following:
``(3) Review and approval by the board.--
``(A) In general.--A policy, plan of insurance, or other
material submitted to the Board under this subsection shall
be reviewed by the Board and shall be approved by the Board
for reinsurance and for sale by approved insurance providers
to producers at actuarially appropriate rates and under
appropriate terms and conditions if the Board, at the sole
discretion of the Board, determines that--
``(i) the interests of producers are adequately protected;
``(ii) the rates of premium and price election methodology
are actuarially appropriate;
``(iii) the terms and conditions for the proposed policy or
plan of insurance are appropriate and would not unfairly
discriminate among producers;
``(iv) the proposed policy or plan of insurance will, at
the sole discretion of the Board--
``(I) likely result in a viable and marketable policy that
can reasonably attain levels of participation similar to
other like policies or plans of insurance;
``(II) provide crop insurance coverage in a significantly
improved form or in a manner that addresses a recognized flaw
or problem in an existing policy; or
``(III) provide a new kind of coverage for a commodity that
previously had no available crop insurance, or has
demonstrated a low level of participation under existing
coverage;
``(v) the proposed policy or plan of insurance will, at the
sole discretion of the Board, not have a significant adverse
impact on the crop insurance delivery system; and
``(vi) the proposed policy or plan of insurance meets such
other requirements as are determined appropriate by the
Board.
``(B) Priorities.--
``(i) Establishment.--The Board, at the sole discretion of
the Board, may--
``(I) annually establish priorities under this subsection
that specify types of submissions needed to fulfill the
portfolio of policies or plans of insurance to be reviewed
and approved under this subsection; and
``(II) make the priorities available on the website of the
Corporation.
``(ii) Process.--
``(I) In general.--Policies or plans of insurance that
satisfy the priorities established by the Board under this
subsection shall be considered by the Board for approval
prior to other submissions.
``(II) Considerations.--In approving policies or plans of
insurance, the Board shall--
``(aa) consider providing the highest priorities for
policies or plans of insurance that address underserved
commodities, including commodities for which there is no
insurance; and
``(bb) consider providing the highest priorities for
existing policies for which there is inadequate coverage or
there exists low levels of participation.
``(iii) Other criteria.--The Board may establish such other
criteria as the Board determines to meet the needs of
producers and the priorities of this subsection, consistent
with the purposes of this subtitle.''.
SEC. 11009. CONSULTATION.
Section 508(h)(4) of the Federal Crop Insurance Act (7
U.S.C. 1508(h)) is amended by adding at the end the
following:
``(E) Consultation.--
``(i) Requirement.--As part of the feasibility and research
associated with the development of a policy or other material
conducted prior to making a submission to the Board under
this subsection, the submitter shall consult with groups
representing producers of agricultural commodities in all
major producing areas for the commodities to be served or
potentially impacted, either directly or indirectly.
``(ii) Submission to the board.--Any submission made to the
Board under this subsection shall contain a summary and
analysis of the feasibility and research findings from the
impacted groups described in clause (i), including a summary
assessment of the support for or against development of the
policy and an assessment on the impact of the proposed policy
to the general marketing and production of the crop from both
a regional and national perspective.
``(iii) Evaluation by the board.--In evaluating whether the
interests of producers are
[[Page S4095]]
adequately protected pursuant to paragraph (3) with respect
to an submission made under this subsection, the Board shall
review the information provided pursuant to clause (ii) to
determine if the submission will create adverse market
distortions with respect to the production of commodities
that are the subject of the submission.''.
SEC. 11010. BUDGET LIMITATIONS ON RENEGOTIATION OF THE
STANDARD REINSURANCE AGREEMENT.
Section 508(k)(8) of the Federal Crop Insurance Act (7
U.S.C. 1508(k)(8)) is amended by adding at the end the
following:
``(F) Budget.--
``(i) In general.--The Board shall ensure that any Standard
Reinsurance Agreement negotiated under subparagraph (A)(ii),
as compared to the previous Standard Reinsurance Agreement--
``(I) to the maximum extent practicable, shall be budget
neutral; and
``(II) in no event, may significantly depart from budget
neutrality.
``(ii) Use of savings.--To the extent that any budget
savings is realized in the renegotiation of a Standard
Reinsurance Agreement under subparagraph (A)(ii), and the
savings are determined not to be a significant departure from
budget neutrality under clause (i), the savings shall be used
for programs administered or managed by the Risk Management
Agency.''.
SEC. 11011. STACKED INCOME PROTECTION PLAN FOR PRODUCERS OF
UPLAND COTTON.
(a) Availability of Stacked Income Protection Plan.--The
Federal Crop Insurance Act is amended by inserting after
section 508A (7 U.S.C. 1508a) the following:
``SEC. 508B. STACKED INCOME PROTECTION PLAN FOR PRODUCERS OF
UPLAND COTTON.
``(a) Availability.--Beginning not later than the 2013 crop
of upland cotton, if practicable, the Corporation shall make
available to producers of maximum eligible acres of upland
cotton an additional policy (to be known as the `Stacked
Income Protection Plan'), which shall provide coverage
consistent with the Group Risk Income Protection Plan (and
the associated Harvest Revenue Option Endorsement) offered by
the Corporation for the 2011 crop year.
``(b) Required Terms.--The Corporation may modify the
Stacked Income Protection Plan on a program-wide basis,
except that the Stacked Income Protection Plan shall comply
with the following requirements:
``(1)(A) Provide coverage for revenue loss of not more than
30 percent of expected county revenue, specified in
increments of 5 percent.
``(B) The deductible is the minimum percent of revenue loss
at which indemnities are triggered under the plan, not to be
less than 10 percent of the expected county revenue.
``(C) Once the deductible is met, any losses in excess of
the deductible will be paid up to the coverage selected by
the producer.
``(2) Be offered to producers of upland cotton in all
counties with upland cotton production--
``(A) at a county-wide level to the fullest extent
practicable; or
``(B) in counties that lack sufficient data, on the basis
of such larger geographical area as the Corporation
determines to provide sufficient data for purposes of
providing the coverage.
``(3) Be purchased in addition to any other individual or
area coverage in effect on the producer's acreage or as a
stand-alone policy, except that if a producer has an
individual or area coverage for the same acreage, the maximum
coverage available under the Stacked Income Protection Plan
shall not exceed the deductible for the individual or area
coverage.
``(4) Establish coverage based on--
``(A) an expected price that is the expected price
established under existing Group Risk Income Protection or
area wide policy offered by the Corporation for the
applicable county (or area) and crop year; and
``(B) an expected county yield that is the higher of--
``(i) the expected county yield established for the
existing area-wide plans offered by the Corporation for the
applicable county (or area) and crop year (or, in geographic
areas where area-wide plans are not offered, an expected
yield determined in a manner consistent with those of area-
wide plans); or
``(ii)(I) the average of the applicable yield data for the
county (or area) for the most recent 5 years, excluding the
highest and lowest observations, from the Risk Management
Agency or the National Agricultural Statistics, or both; or
``(II) if sufficient county data is not available, such
other data considered appropriate by the Secretary.
``(5) Use a multiplier factor to establish maximum
protection per acre (referred to as a `protection factor') of
not more than 120 percent.
``(6) Pay an indemnity based on the amount that the
expected county revenue exceeds the actual county revenue, as
applied to the individual coverage of the producer.
Indemnities under the Stacked Income Protection Plan shall
not include or overlap the amount of the deductible selected
under paragraph (1).
``(7) To the maximum extent practicable, in all counties
for which data are available, establish separate coverage for
irrigated and nonirrigated practices.
``(8) Notwithstanding section 508(d), include a premium
that--
``(A) is sufficient to cover anticipated losses and a
reasonable reserve; and
``(B) includes an amount for operating and administrative
expenses established in accordance with section 508(k)(4)(F).
``(c) Relation to Other Coverages.--
``(1) In general.--Except as provided in paragraph (2), the
Stacked Income Protection Plan is in addition to all other
coverages available to producers of upland cotton.
``(2) Limitation.--Acreage of upland cotton insured under
the Supplemental Coverage Option shall not be eligible for
the Stacked Income Protection Plan.
``(d) Payment of Portion of Premium by Corporation.--
Subject to section 508(e)(4), the amount of premium paid by
the Corporation for all qualifying coverage levels of the
Stacked Income Protection Plan shall be--
``(1) 80 percent of the amount of the premium established
under subsection (b)(8)(A) for the coverage level selected;
and
``(2) the amount determined under subsection (b)(8)(B) to
cover administrative and operating expenses.''.
(b) Conforming Amendment.--Section 508(k)(4)(F) of the
Federal Crop Insurance Act (7 U.S.C. 1508(k)(4)(F)) (as
amended by section 11001(d)) is amended by inserting ``or
under section 508B'' after ``subsection (c)(4)(C)''.
SEC. 11012. PEANUT REVENUE CROP INSURANCE.
The Federal Crop Insurance Act is amended by inserting
after section 508B (as added by section 11011(a)) the
following:
``SEC. 508C. PEANUT REVENUE CROP INSURANCE.
``(a) In General.--Effective beginning with the 2013 crop
year, the Risk Management Agency and the Corporation shall
make available to producers of peanuts a revenue crop
insurance program for peanuts.
``(b) Effective Price.--
``(1) In general.--Subject to paragraph (2), for purposes
of the policies and plans of insurance offered under
subsections (a) and (b) of section 508, the effective price
for peanuts shall be equal to the Rotterdam price index for
peanuts, as adjusted to reflect the farmer stock price of
peanuts in the United States.
``(2) Adjustments.--
``(A) In general.--The effective price for peanuts
established under paragraph (1) may be adjusted by the Risk
Management Agency and the Corporation to correct distortions.
``(B) Administration.--If an adjustment is made under
subparagraph (A), the Risk Management Agency and the
Corporation shall--
``(i) make the adjustment in an open and transparent
manner; and
``(ii) submit to the Committee on Agriculture of the House
of Representatives and the Committee on Agriculture,
Nutrition, and Forestry of the Senate a report that describes
the reasons for the adjustment.''.
SEC. 11013. AUTHORITY TO CORRECT ERRORS.
Section 515(c) of the Federal Crop Insurance Act (7 U.S.C.
1515(c)) is amended--
(1) in the first sentence, by striking ``The Secretary''
and inserting the following:
``(1) In general.--The Secretary'';
(2) in the second sentence, by striking ``Beginning with''
and inserting the following:
``(2) Frequency.--Beginning with''; and
(3) by adding at the end the following:
``(3) Corrections.--
``(A) In general.--The Corporation shall establish
procedures that allow an agent and approved insurance
provider within a reasonable amount of time following the
applicable sales closing date to correct information
regarding the entity name, social security number, tax
identification number, or such other eligibility information
as determined by the Corporation that is provided by a
producer for the purpose of obtaining coverage under any
policy or plan of insurance made available under this
subtitle to ensure that the eligibility information is
consistent with the information reported by the producer to
the Farm Service Agency.
``(B) Limitation.--In accordance with the procedures of the
Corporation, procedures under subparagraph (A) may include
any subsequent correction to the eligibility information
described in that subparagraph made by the Farm Service
Agency if the corrections do not allow the producer--
``(i) to obtain a disproportionate benefit under the crop
insurance program or any related program of the Department of
Agriculture;
``(ii) to avoid ineligibility requirements for insurance;
or
``(iii) to avoid an obligation or requirement under any
Federal or State law.''.
SEC. 11014. IMPLEMENTATION.
Section 515 of the Federal Crop Insurance Act (7 U.S.C.
1515) is amended--
(1) in subsection (j), by striking paragraph (1) and
inserting the following:
``(1) Systems maintenance and upgrades.--
``(A) In general.--The Secretary shall maintain and upgrade
the information management systems of the Corporation used in
the administration and enforcement of this subtitle.
``(B) Requirement.--
``(i) In general.--In maintaining and upgrading the
systems, the Secretary shall ensure that new hardware and
software are compatible with the hardware and software used
by other agencies of the Department to maximize data sharing
and promote the purposes of this section.
``(ii) Acreage report streamlining initiative project.--As
soon as practicable, the Secretary shall develop and
implement an acreage report streamlining initiative project
to allow producers to report acreage and other information
directly to the Department.''; and
[[Page S4096]]
(2) in subsection (k), by striking paragraph (1) and
inserting the following:
``(1) Information technology.--
``(A) In general.--For purposes of subsection (j)(1), the
Corporation may use, from amounts made available from the
insurance fund established under section 516(c), not more
than--
``(i)(I) for fiscal year 2013, $25,000,000; and
``(II) for each of fiscal years 2014 through 2017,
$10,000,000; or
``(ii) if the Acreage Crop Reporting Streamlining
Initiative (ACRSI) project is substantially completed by
September 30, 2013, not more than $15,000,000 for each of
fiscal years 2014 through 2017.
``(B) Notification.--Not later than July 1, 2013, the
Secretary shall notify the Committee on Agriculture of the
House of Representatives and the Committee on Agriculture,
Nutrition, and Forestry of the Senate on the status of the
substantial completion of the Acreage Crop Reporting
Streamlining Initiative (ACRSI) project.''.
SEC. 11015. APPROVAL OF COSTS FOR RESEARCH AND DEVELOPMENT.
Section 522(b)(2) of the Federal Crop Insurance Act (7
U.S.C. 1522(b)(2)) is amended by striking subparagraph (E)
and inserting the following:
``(E) Approval.--
``(i) In general.--The Board may approve up to 50 percent
of the projected total research and development costs to be
paid in advance to an applicant, in accordance with the
procedures developed by the Board for the making of the
payments, if, after consideration of the reviewer reports
described in subparagraph (D) and such other information as
the Board determines appropriate, the Board determines that--
``(I) the concept, in good faith, will likely result in a
viable and marketable policy consistent with section 508(h);
``(II) at the sole discretion of the Board, the concept, if
developed into a policy and approved by the Board, would
provide crop insurance coverage--
``(aa) in a significantly improved form or that addresses a
unique need of agricultural producers;
``(bb) to a crop or region not traditionally served by the
Federal crop insurance program; or
``(cc) in a form that addresses a recognized flaw or
problem in the program;
``(III) the applicant agrees to provide such reports as the
Corporation determines are necessary to monitor the
development effort;
``(IV) the proposed budget and timetable are reasonable, as
determined by the Board; and
``(V) the concept proposal meets any other requirements
that the Board determines appropriate.
``(ii) Waiver.--The Board may waive the 50-percent
limitation and, upon request of the submitter after the
submitter has begun research and development activities, the
Board may approve an additional 25 percent advance payment to
the submitter for research and development costs, if, at the
sole discretion of the Board, the Board determines that--
``(I) the intended policy or plan of insurance developed by
the submitter will provide coverage for a region or crop that
is underserved by the Federal crop insurance program,
including specialty crops;
``(II) the submitter is making satisfactory progress
towards developing a viable and marketable policy or plan of
insurance consistent with section 508(h); and
``(III) the submitter does not have sufficient financial
resources to complete the development of the submission into
a viable and marketable policy or plan of insurance
consistent with section 508(h).''.
SEC. 11016. WHOLE FARM RISK MANAGEMENT INSURANCE.
Section 522(c) of the Federal Crop Insurance Act (7 U.S.C.
1522(c)) is amended by adding at the end the following:
``(18) Whole farm diversified risk management insurance
plan.--
``(A) In general.--The Corporation shall conduct activities
or enter into contracts to carry out research and development
to develop a whole farm risk management insurance plan, with
a liability limitation of $1,500,000, that allows a
diversified crop or livestock producer the option to qualify
for an indemnity if actual gross farm revenue is below 85
percent of the average gross farm revenue or the expected
gross farm revenue that can reasonably be expected of the
producer, as determined by the Corporation.
``(B) Eligible producers.--The Corporation shall permit
producers (including direct-to-consumer marketers, and
producers servicing local and regional and farm identity-
preserved markets) who produce multiple agricultural
commodities, including specialty crops, industrial crops,
livestock, and aquaculture products, to participate in the
plan in lieu of any other plan under this subtitle.
``(C) Diversification.--The Corporation may provide
diversification-based additional coverage payment rates,
premium discounts, or other enhanced benefits in recognition
of the risk management benefits of crop and livestock
diversification strategies for producers that grow multiple
crops or that may have income from the production of
livestock that uses a crop grown on the farm.
``(D) Market readiness.--The Corporation may include
coverage for the value of any packing, packaging, or any
other similar on-farm activity the Corporation determines to
be the minimum required in order to remove the commodity from
the field.
``(E) Report.--Not later than 2 years after the date of
enactment of this paragraph, the Corporation shall submit to
the Committee on Agriculture of the House of Representatives
and the Committee on Agriculture, Nutrition, and Forestry of
the Senate a report that describes the results and
feasibility of the research and development conducted under
this paragraph, including an analysis of potential adverse
market distortions.''.
SEC. 11017. CROP INSURANCE FOR LIVESTOCK.
Section 522(c) of the Federal Crop Insurance Act (as
amended by section 11016) is amended by adding at the end the
following:
``(19) Study on swine catastrophic disease program.--
``(A) In general.--The Corporation shall contract with a
qualified person to conduct a study to determine the
feasibility of insuring swine producers for a catastrophic
event.
``(B) Report.--Not later than 1 year after the date of the
enactment of this paragraph, the Corporation shall submit to
the Committee on Agriculture of the House of Representatives
and the Committee on Agriculture, Nutrition, and Forestry of
the Senate a report that describes the results of the study
conducted under subparagraph (A).''.
SEC. 11018. MARGIN COVERAGE FOR CATFISH.
Section 522(c) of the Federal Crop Insurance Act (as
amended by section 11017) is amended by adding at the end the
following:
``(20) Margin coverage for catfish.--
``(A) In general.--The Corporation shall offer to enter
into a contract with a qualified entity to conduct research
and development regarding a policy to insure producers
against reduction in the margin between the market value of
catfish and selected costs incurred in the production of
catfish.
``(B) Eligibility.--Eligibility for the policy described in
subparagraph (A) shall be limited to freshwater species of
catfish that are propagated and reared in controlled or
selected environments.
``(C) Implementation.--The Board shall review the policy
described in subparagraph (B) under subsection 508(h) and
approve the policy if the Board finds that the policy--
``(i) will likely result in a viable and marketable policy
consistent with this subsection;
``(ii) would provide crop insurance coverage in a
significantly improved form;
``(iii) adequately protects the interests of producers; and
``(iv) the proposed policy meets other requirements of this
subtitle determined appropriate by the Board.''.
SEC. 11019. RESEARCH AND DEVELOPMENT.
(a) In General.--Section 522(c) of the Federal Crop
Insurance Act (7 U.S.C. 1522(c)) is amended--
(1) in the subsection heading, by striking ``Contracting'';
(2) in paragraph (1), in the matter preceding subparagraph
(A), by striking ``may enter into contracts to carry out
research and development to'' and inserting ``may conduct
activities or enter into contracts to carry out research and
development to maintain or improve existing policies or
develop new policies to'';
(3) in paragraph (2)--
(A) in subparagraph (A), by inserting ``conduct research
and development or'' after ``The Corporation may''; and
(B) by striking subparagraph (B) and inserting the
following:
``(B) Consultation.--Before conducting research and
development or entering into a contract under subparagraph
(A), the Corporation shall follow the consultation
requirements described in section 508(h)(4)(E).'';
(4) in paragraph (5), by inserting ``after expert review in
accordance with section 505(e) and procedures of the Board''
after ``approved by the Board''; and
(5) in paragraph (6), by striking ``a pasture, range, and
forage program'' and inserting ``policies that increase
participation by producers of underserved agricultural
commodities, including sweet sorghum, sorghum for biomass,
specialty crops, sugarcane, and dedicated energy crops''.
(b) Funding.--Section 522(e) of the Federal Crop Insurance
Act (7 U.S.C. 1522(e)) is amended--
(1) in paragraph (2)--
(A) by striking ``(A) Authority.--'' and inserting ``(A)
Conducting and contracting for research and development.--'';
(B) in subparagraph (A), by inserting ``conduct research
and development and'' after ``the Corporation may use to'';
and
(C) in subparagraph (B), by inserting ``conduct research
and development and'' after ``for the fiscal year to'';
(2) in paragraph (3), in the matter preceding subparagraph
(A), by striking ``to provide either reimbursement payments
or contract payments''; and
(3) by striking paragraph (4).
SEC. 11020. PILOT PROGRAMS.
Section 523(a) of the Federal Crop Insurance Act (7 U.S.C.
1523(a)) is amended--
(1) in paragraph (1), by inserting ``, at the sole
discretion of the Corporation,'' after ``may''; and
(2) by striking paragraph (5).
SEC. 11021. INDEX-BASED WEATHER INSURANCE PILOT PROGRAM.
Section 523(a)(2) of the Federal Crop Insurance Act (7
U.S.C. 1523(a)(2)) is amended--
(1) by striking ``Under'' inserting the following:
``(A) In general.--Under''; and
(2) by adding at the end the following:
``(B) Index-based weather insurance pilot program.--
[[Page S4097]]
``(i) In general.--Notwithstanding subparagraph (A), the
Corporation, at the sole discretion of the Corporation, may
conduct a pilot program to provide financial assistance for
producers of underserved crops and livestock (including
specialty crops) to purchase an index-based weather insurance
product from a private insurance company, subject to the
requirements of this subparagraph.
``(ii) Payment of premium.--
``(I) In general.--Subject to subclause (II) and clause
(v), the Corporation may pay a portion of the premium for
producers who purchase index-based weather insurance
protection from a private insurance company for a crop and
policy that is not reinsured under this subtitle, as
determined by the Corporation.
``(II) Condition.--The premium assistance under subclause
(I) shall not exceed 60 percent of the estimated premium
amount, based on expected losses, representative operating
expenses, and representative profit margins, as determined by
the Corporation.
``(iii) Eligible providers.--Before providing premium
assistance to producers to purchase index-based weather
insurance from a private insurance company pursuant to this
subparagraph, the Corporation shall verify that the company
has adequate experience--
``(I) to develop and manage the index-based weather
insurance products, including adequate resources, experience,
and assets or sufficient reinsurance to meet the obligations
of the company under this subparagraph; and
``(II) to support and deliver the index-based weather
insurance products.
``(iv) Procedures.--The Corporation shall develop and
publish procedures to administer the pilot program under this
subparagraph that--
``(I) require each applicable private insurance company to
report claim and sales data, and any other data the
Corporation determines to be appropriate, to allow the
Corporation to evaluate product pricing and performance;
``(II) allow the private insurance companies exclusive
rights over the private insurance offered under this
subparagraph, including rating of policies, protection of
intellectual property rights on the product or policy, and
associated rating methodology, for the period during which
the companies are eligible under clause (iii); and
``(III) contain such other requirements as the Corporation
determines to be necessary to ensure that--
``(aa) the interests of producers are protected; and
``(bb) the program operates in an actuarially sound manner.
``(v) Funding.--Of the funds of the Corporation, the
Corporation shall use to carry out this subparagraph
$10,000,000 for each of fiscal years 2013 through 2017, to
remain available until expended.''.
SEC. 11022. ENHANCING PRODUCER SELF-HELP THROUGH FARM
FINANCIAL BENCHMARKING.
(a) Definition.--Section 502(b) of the Federal Crop
Insurance Act (7 U.S.C. 1502(b)) is amended--
(1) by redesignating paragraphs (6) through (9) as
paragraphs (7) through (10), respectively; and
(2) by inserting after paragraph (5) the following:
``(6) Farm financial benchmarking.--The term `farm
financial benchmarking' means--
``(A) the process of comparing the performance of an
agricultural enterprise against the performance of other
similar enterprises, through the use of comparable and
reliable data, in order to identify business management
strengths, weaknesses, and steps necessary to improve
management performance and business profitability; and
``(B) benchmarking of the type conducted by farm management
and producer associations consistent with the activities
described in or funded pursuant to section 1672D of the Food,
Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C.
5925f).''.
(b) Partnerships for Risk Management for Producers of
Specialty Crops and Underserved Agricultural Commodities.--
Section 522(d)(3)(F) of the Federal Crop Insurance Act (7
U.S.C. 1522(d)(3)(F)) is amended by inserting ``farm
financial benchmarking,'' after ``management,''.
(c) Crop Insurance Education and Risk Management
Assistance.--Section 524(a) of the Federal Crop Insurance Act
(7 U.S.C. 1524(a)) is amended--
(1) in paragraph (3)(A), by inserting ``farm financial
benchmarking,'' after ``risk reduction,''; and
(2) in paragraph (4), in the matter preceding subparagraph
(A), by inserting ``(including farm financial benchmarking)''
after ``management strategies''.
SEC. 11023. BEGINNING FARMER AND RANCHER PROVISIONS.
(a) Definition.--Section 502(b) of the Federal Crop
Insurance Act (7 U.S.C. 1502(b)) (as amended by section
11022(a)) is amended--
(1) by redesignating paragraphs (3) through (10) as
paragraphs (4) through (11), respectively; and
(2) by inserting after paragraph (2) the following:
``(3) Beginning farmer or rancher.--The term `beginning
farmer or rancher' means a farmer or rancher who has not
actively operated and managed a farm or ranch with a bona
fide insurable interest in a crop or livestock as an owner-
operator, landlord, tenant, or sharecropper for more than 5
crop years, as determined by the Secretary.''.
(b) Premium Adjustments.--Section 508 of the Federal Crop
Insurance Act (7 U.S.C. 1508) is amended--
(1) in subsection (b)(5)(E), by inserting ``and beginning
farmers or ranchers'' after ``limited resource farmers'';
(2) in subsection (e), by adding at the end the following:
``(8) Premium for beginning farmers or ranchers.--
Notwithstanding any other provision of this subsection
regarding payment of a portion of premiums, a beginning
farmer or rancher shall receive premium assistance that is 10
percentage points greater than premium assistance that would
otherwise be available under paragraphs (2) (except for
subparagraph (A) of that paragraph), (5), (6), and (7) for
the applicable policy, plan of insurance, and coverage level
selected by the beginning farmer or rancher.''; and
(3) in subsection (g)--
(A) in paragraph (2)(B)--
(i) in clause (i), by striking ``or'' at the end;
(ii) in clause (ii)(III), by striking the period at the end
and inserting ``; or''; and
(iii) by adding at the end the following:
``(iii) if the producer is a beginning farmer or rancher
who was previously involved in a farming or ranching
operation, including involvement in the decisionmaking or
physical involvement in the production of the crop or
livestock on the farm, for any acreage obtained by the
beginning farmer or rancher, a yield that is the higher of--
``(I) the actual production history of the previous
producer of the crop or livestock on the acreage determined
under subparagraph (A); or
``(II) a yield of the producer, as determined in clause
(i).''; and
(B) in paragraph (4)(B)(ii) (as amended by section 11006)--
(i) by inserting ``(I)'' after ``(ii)'';
(ii) by striking the period at the end and inserting ``;
or''; and
(iii) by adding at the end the following:
``(II) in the case of beginning farmers or ranchers,
replace each excluded yield with a yield equal to 80 percent
of the applicable transitional yield.''.
SEC. 11024. AGRICULTURAL MANAGEMENT ASSISTANCE, RISK
MANAGEMENT EDUCATION, AND ORGANIC CERTIFICATION
COST SHARE ASSISTANCE.
Section 524 of the Federal Crop Insurance Act (7 U.S.C.
1524) is amended by striking subsection (b) and inserting the
following:
``(b) Agricultural Management Assistance, Risk Management
Education, and Organic Certification Cost Share Assistance.--
``(1) Authority for provision of assistance.--The Secretary
shall provide assistance under this section as follows:
``(A) Provision of organic certification cost share
assistance pursuant to section 10606 of the Farm Security and
Rural Investment Act of 2002 (7 U.S.C. 6523).
``(B) Activities to support risk management education and
community outreach partnerships pursuant to section 522(d),
including--
``(i) entering into futures or hedging;
``(ii) entering into agricultural trade options as a
hedging transaction to reduce production, price, or revenue
risk; or
``(iii) conducting any other activity relating to an
activity described in clause (i) or (ii), including farm
financial benchmarking, as determined by the Secretary.
``(C) Provision of agricultural management assistance
grants to producers in States in which there has been
traditionally, and continues to be, a low level of Federal
crop insurance participation and availability, and producers
underserved by the Federal crop insurance program, as
determined by the Secretary, for the purposes of--
``(i) constructing or improving--
``(I) watershed management structures; or
``(II) irrigation structures;
``(ii) planting trees to form windbreaks or to improve
water quality; and
``(iii) mitigating financial risk through production or
marketing diversification or resource conservation practices,
including--
``(I) soil erosion control;
``(II) integrated pest management;
``(III) organic farming; or
``(IV) to develop and implement a plan to create marketing
opportunities for the producer, including through value-added
processing.
``(2) Payment limitation.--The total amount of payments
made to a person (as defined in section 1001(5) of the Food
Security Act (7 U.S.C. 1308(5))) (as in existence before the
amendment made by section 1603(b) of the Food, Conservation,
and Energy Act of 2008 (Public Law 110 246; 122 Stat. 1730))
under paragraph (1) for any year may not exceed $50,000.
``(3) Funding.--
``(A) In general.--The Secretary shall carry out this
subsection through the Commodity Credit Corporation.
``(B) Funding.--For each of fiscal years 2013 through 2017,
the Commodity Credit Corporation shall make available to
carry out this subsection $23,000,000.
``(C) Distribution of funds.--Of the amount made available
to carry out this subsection for a fiscal year, the Commodity
Credit Corporation shall use not less than--
``(i) 50 percent to carry out paragraph (1)(A);
``(ii) 26 percent to carry out paragraph (1)(B); and
``(iii) 24 percent to carry out paragraph (1)(C).''.
[[Page S4098]]
SEC. 11025. CROP PRODUCTION ON NATIVE SOD.
(a) Federal Crop Insurance.--Section 508(o) of the Federal
Crop Insurance Act (7 U.S.C. 1508(o)) is amended--
(1) in paragraph (1)(B), by inserting ``, or the producer
cannot substantiate that the ground has ever been tilled,''
after ``tilled'';
(2) in paragraph (2)(A), by striking ``for benefits under--
'' and all that follows through the period at the end and
inserting ``for--
``(i) a portion of crop insurance premium subsidies under
this subtitle in accordance with paragraph (3);
``(ii) benefits under section 196 of the Federal
Agriculture Improvement and Reform Act of 1996 (7 U.S.C.
7333); and
``(iii) payments described in subsection (b) of section
1001 of the Food Security Act of 1985 (7 U.S.C. 1308).''; and
(3) by striking paragraph (3) and inserting the following:
``(3) Administration.--
``(A) In general.--During the first 4 crop years of
planting on native sod acreage by a producer described in
paragraph (2)--
``(i) paragraph (2) shall apply to 65 percent of the
applicable transitional yield; and
``(ii) the crop insurance premium subsidy provided for the
producer under this subtitle shall be 50 percentage points
less than the premium subsidy that would otherwise apply.
``(B) Yield substitution.--During the period native sod
acreage is covered by this subsection, a producer may not
substitute yields for the native sod acreage.''.
(b) Noninsured Crop Disaster Assistance.--Section 196(a)(4)
of the Federal Agriculture Improvement and Reform Act of 1996
(7 U.S.C. 7333(a)(4)) is amended--
(1) in subparagraph (A)(ii), by inserting ``, or the
producer cannot substantiate that the ground has ever been
tilled,'' after ``tilled'';
(2) in subparagraph (B)(i), by striking ``for benefits
under--'' and all that follows through the period at the end
and inserting ``for--
``(I) benefits under this section;
``(II) a portion of crop insurance premium subsidies under
the Federal Crop Insurance Act (7 U.S.C. 1501 et seq.) in
accordance with subparagraph (C); and
``(III) payments described in subsection (b) of section
1001 of the Food Security Act of 1985 (7 U.S.C. 1308).''; and
(3) by striking subparagraph (C) and inserting the
following:
``(C) Administration.--
``(i) In general.--During the first 4 crop years of
planting on native sod acreage by a producer described in
subparagraph (B)--
``(I) subparagraph (B) shall apply to 65 percent of the
applicable transitional yield; and
``(II) the crop insurance premium subsidy provided for the
producer under the Federal Crop Insurance Act (7 U.S.C. 1501
et seq.) shall be 50 percentage points less than the premium
subsidy that would otherwise apply.
``(ii) Yield substitution.--During the period native sod
acreage is covered by this paragraph, a producer may not
substitute yields for the native sod acreage.''.
(c) Cropland Report.--
(1) Baseline.----Not later than 180 days after the date of
enactment of this Act, the Secretary of Agriculture shall
submit to the Committee on Agriculture of the House of
Representatives and the Committee on Agriculture, Nutrition,
and Forestry of the Senate a report that describes the
cropland acreage in each county and State, and the change in
cropland acreage from the preceding year in each county and
State, beginning with calendar year 2000 and including that
information for the most recent year for which that
information is available.
(2) Annual updates.--Not later than January 1, 2014, and
each January 1 thereafter through January 1, 2017, the
Secretary of Agriculture shall submit to the Committee on
Agriculture of the House of Representatives and the Committee
on Agriculture, Nutrition, and Forestry of the Senate a
report that describes--
(A) the cropland acreage in each county and State as of the
date of submission of the report; and
(B) the change in cropland acreage from the preceding year
in each county and State.
SEC. 11026. TECHNICAL AMENDMENTS.
Section 508(b) of the Federal Crop Insurance Act (7 U.S.C.
1508(b)) is amended--
(1) by striking paragraph (7); and
(2) by redesignating paragraphs (8) through (11) as
paragraphs (7) through (10), respectively.
TITLE XII--MISCELLANEOUS
Subtitle A--Socially Disadvantaged Producers and Limited Resource
Producers
SEC. 12001. OUTREACH AND ASSISTANCE FOR SOCIALLY
DISADVANTAGED FARMERS AND RANCHERS AND VETERAN
FARMERS AND RANCHERS.
(a) Outreach and Assistance for Socially Disadvantaged
Farmers and Ranchers and Veteran Farmers and Ranchers.--
Section 2501 of the Food, Agriculture, Conservation, and
Trade Act of 1990 (7 U.S.C. 2279) is amended--
(1) in the section heading, by inserting ``AND VETERAN
FARMERS AND RANCHERS'' after ``RANCHERS'';
(2) in subsection (a)--
(A) in paragraph (2)(B)(i), by inserting ``and veteran
farmers or ranchers'' after ``ranchers''; and
(B) in paragraph (4)--
(i) in subparagraph (A)--
(I) in clause (i), by striking ``and'' at the end;
(II) in clause (ii), by striking the period at the end and
inserting ``; and''; and
(III) by adding at the end the following:
``(iii) $5,000,000 for each of fiscal years 2013 through
2017.''; and
(ii) by adding at the end the following:
``(D) Authorization of appropriations.--There is authorized
to be appropriated to carry out this section $20,000,000 for
each of fiscal years 2013 through 2017.'';
(3) in subsection (b)(2), by inserting ``or veteran farmers
and ranchers'' after ``socially disadvantaged farmers and
ranchers''; and
(4) in subsection (c)--
(A) in paragraph (1)(A), by inserting ``veteran farmers or
ranchers and'' before ``members''; and
(B) in paragraph (2)(A), by inserting ``veteran farmers or
ranchers and'' before ``members''.
(b) Definition of Veteran Farmer or Rancher.--Section
2501(e) of the Food, Agriculture, Conservation, and Trade Act
of 1990 (7 U.S.C. 2279(e)) is amended by adding at the end
the following:
``(7) Veteran farmer or rancher.--The term `veteran farmer
or rancher' means a farmer or rancher who served in the
active military, naval, or air service, and who was
discharged or released from the service under conditions
other than dishonorable.''.
SEC. 12002. OFFICE OF ADVOCACY AND OUTREACH.
Section 226B(f)(3) of the Department of Agriculture
Reorganization Act of 1994 (7 U.S.C. 6934(f)(3)) is amended
to read as follows:
``(3) Authorization of appropriations.--There are
authorized to be appropriated to carry out this subsection--
``(A) such sums as are necessary for each of fiscal years
2009 through 2012; and
``(B) $2,000,000 for each of fiscal years 2013 through
2017.''.
Subtitle B--Livestock
SEC. 12101. WILDLIFE RESERVOIR ZOONOTIC DISEASE INITIATIVE.
Title IV of the Agricultural Research, Extension, and
Education Reform Act of 1998 (7 U.S.C. 7621 et seq.) is
amended by adding at the end the following:
``SEC. 413. WILDLIFE RESERVOIR ZOONOTIC DISEASE INITIATIVE.
``(a) Definition of Covered Disease.--In this section, the
term `covered disease' means a zoonotic disease affecting
domestic livestock that is transmitted primarily from
wildlife.
``(b) Establishment.--There is established within the
Department a wildlife reservoir zoonotic disease initiative
to provide assistance through Coordinated Agricultural
Project grants for research and development of surveillance
methods, vaccines, vaccination delivery systems, or
diagnostic tests for covered diseases.
``(c) Covered Disease.--
``(1) In general.--To be eligible for a grant under this
section, an eligible entity shall conduct research and
development of surveillance methods, vaccines, vaccination
delivery systems, or diagnostic tests for covered diseases
in--
``(A) a wildlife reservoir in the United States; or
``(B) domestic livestock or wildlife presenting a potential
concern to public health.
``(2) Priority.--In making grants under this section, the
Secretary shall give priority to grants that address--
``(A) Brucella abortus (Bovine Brucellosis);
``(B) Mycobacterium bovis (Bovine Tuberculosis); or
``(C) other zoonotic disease in livestock that is covered
by a high-priority research and extension initiative
conducted under section 1672 of the Food, Agriculture,
Conservation, and Trade Act of 1990 (7 U.S.C. 5925).
``(d) Eligible Entities.--The Secretary shall carry out the
initiative established under subsection (b) through public
scientific research consortia that may consist of members
from--
``(1) Federal agencies;
``(2) National Laboratories;
``(3) institutions of higher education;
``(4) research institutions and organizations; or
``(5) State agricultural experiment stations.
``(e) Research Projects.--In carrying out this section, the
Secretary shall award grants on a competitive basis.
``(f) Administration.--
``(1) In general.--In the case of grants awarded under this
section, the Secretary shall--
``(A) seek and accept proposals for grants;
``(B) determine the relevance and merit of proposals
through a system of peer and merit review in accordance with
section 103;
``(C) award grants on the basis of merit, quality, and
relevance; and
``(D) manage the initiative established under subsection
(b) using a Coordinated Agricultural Project format.
``(2) Term.--The term of a grant under this section may not
exceed 10 years.
``(3) Matching funds required.--The Secretary shall require
the recipient of a grant under this section to provide funds
or in-kind support from non-Federal sources in an amount that
is not less than 25 percent of the amount provided by the
Federal Government.
``(4) Other conditions.--The Secretary may set such other
conditions on the award of a grant under this section as the
Secretary determines to be appropriate.
``(g) Buildings and Facilities.--Funds made available under
this section shall not be used for--
[[Page S4099]]
``(1) the construction of a new building or facility; or
``(2) the acquisition, expansion, remodeling, or alteration
of an existing building or facility (including site grading
and improvement and architect fees).
``(h) Authorization of Appropriations.--
``(1) In general.--There is authorized to be appropriated
to carry out this section $7,000,000 for each of fiscal years
2012 through 2017.
``(2) Allocation.--Of the amount made available for a
fiscal year under paragraph (1), the Secretary shall use not
less than 30 percent of the amount for the fiscal year to
carry out activities under each of subparagraphs (A) and (B)
of subsection (c)(2).''.
SEC. 12102. TRICHINAE CERTIFICATION PROGRAM.
Section 10405(d)(1) of the Animal Health Protection Act (7
U.S.C. 8304(d)(1)) is amended in subparagraphs (A) and (B) by
striking ``2012'' each place it appears and inserting
``2017''.
SEC. 12103. NATIONAL AQUATIC ANIMAL HEALTH PLAN.
Section 11013(d) of the Food, Conservation, and Energy Act
of 2008 (7 U.S.C. 8322(d)) is amended by striking ``2012''
and inserting ``2017''.
SEC. 12104. SHEEP PRODUCTION AND MARKETING GRANT PROGRAM.
(a) In General.--Subtitle A of the Agricultural Marketing
Act of 1946 (7 U.S.C. 1621 et seq.) is amended by adding at
the end the following:
``SEC. 209. SHEEP PRODUCTION AND MARKETING GRANT PROGRAM.
``(a) Establishment.--The Secretary, acting through the
Administrator of the Agricultural Marketing Service (referred
to in this section as the `Secretary') shall establish a
competitive grant program for the purposes of improving the
United States sheep industry.
``(b) Purpose.--The purpose of the grant program shall be
to strengthen and enhance the production and marketing of
sheep and sheep products, including improvement of--
``(1) infrastructure;
``(2) business;
``(3) resource development; and
``(4) innovative approaches to solve long-term needs.
``(c) Eligibility.--The Secretary shall make grants under
this section to 1 or more national entities the mission of
which is consistent with the purpose of the grant program.
``(d) Funding.--Of the funds of the Commodity Credit
Corporation, the Secretary shall use to carry out this
section $1,500,000 for fiscal year 2013, to remain available
until expended.''.
(b) Conforming Amendment.--Section 374 of the Consolidated
Farm and Rural Development Act (7 U.S.C. 2008j) (as in
existence on the day before the date of enactment of this
Act) is--
(1) amended in subsection (e)--
(A) in paragraph (3)(D), by striking ``3 percent'' and
inserting ``10 percent''; and
(B) by striking paragraph (6); and
(2) redesignated as section 210 of the Agricultural
Marketing Act of 1946; and
(3) moved so as to appear at the end of subtitle A of that
Act (as amended by subsection (a)).
SEC. 12105. FERAL SWINE ERADICATION PILOT PROGRAM.
(a) In General.--To eradicate or control the threat feral
swine pose to the domestic swine population, the entire
livestock industry, and the destruction of crops and natural
plant communities and native habitats, the Secretary of
Agriculture may establish a feral swine eradication pilot
program.
(b) Pilot.--Subject to the availability of appropriations
under this section, the Secretary may provide financial
assistance for the cost of carrying out a pilot program--
(1) to study and assess the nature and extent of damage to
the pilot area caused by feral swine;
(2) to develop methods to eradicate or control feral swine
in the pilot area; and
(3) to develop methods to restore damage caused by feral
swine.
(c) Coordination.--The Secretary shall ensure that the
Natural Resource Conservation Service and the Animal and
Plant Health Inspection Service coordinate to carry out the
pilot program.
(d) Cost Sharing.--
(1) Federal share.--The Federal share of the costs of the
pilot program under this section may not exceed 75 percent of
the total costs of carrying out the pilot program.
(2) In-kind contributions.--The non-Federal share of the
costs of the pilot program may be provided in the form of in-
kind contributions of materials or services.
(e) Limitation on Administrative Expenses.--Not more than
10 percent of financial assistance provided by the Secretary
under this section may be used for administrative expenses.
(f) Authorization of Appropriations.--There is authorized
to be appropriated to carry out this section $2,000,000 for
each of fiscal years 2013 through 2017.
Subtitle C--Other Miscellaneous Provisions
SEC. 12201. MILITARY VETERANS AGRICULTURAL LIAISON.
(a) In General.--Subtitle A of the Department of
Agriculture Reorganization Act of 1994 is amended by
inserting after section 218 (7 U.S.C. 6918) the following:
``SEC. 219. MILITARY VETERANS AGRICULTURAL LIAISON.
``(a) Authorization.--The Secretary shall establish in the
Department the position of Military Veterans Agricultural
Liaison.
``(b) Duties.--The Military Veterans Agricultural Liaison
shall--
``(1) provide information to returning veterans about, and
connect returning veterans with, beginning farmer training
and agricultural vocational and rehabilitation programs
appropriate to the needs and interests of returning veterans,
including assisting veterans in using Federal veterans
educational benefits for purposes relating to beginning a
farming or ranching career;
``(2) provide information to veterans concerning the
availability of and eligibility requirements for
participation in agricultural programs, with particular
emphasis on beginning farmer and rancher programs;
``(3) serving as a resource for assisting veteran farmers
and ranchers, and potential farmers and ranchers, in applying
for participation in agricultural programs; and
``(4) advocating on behalf of veterans in interactions with
employees of the Department.''.
(b) Conforming Amendments.--Section 296(b) of the
Department of Agriculture Reorganization Act of 1994 (7
U.S.C. 7014(b)) (as amended by section 4206(b)) is amended--
(1) in paragraph (8), by striking the ``or'' at the end;
(2) in paragraph (9), by striking the period at the end and
inserting ``; or''; and
(3) by adding at the end the following:
``(10) the authority of the Secretary to establish in the
Department the position of Military Veterans Agricultural
Liaison in accordance with section 219.''.
______
SA 2390. Mr. REID proposed an amendment to amendment SA 2389 proposed
by Mr. Reid (for Ms. Stabenow (for herself and Mr. Roberts)) to the
bill S. 3240, to reauthorize agricultural programs through 2017, and
for other purposes; as follows:
At the end, add the following:
SEC. __. EFFECTIVE DATE.
This Act shall become effective 5 days after enactment.
______
SA 2391. Mr. REID proposed an amendment to the bill S. 3240, to
reauthorize agricultural programs through 2017, and for other purposes;
as follows:
Beginning on page 312, strike line 1 and all that follows
through page 342, line 10, and insert the following:
TITLE IV--NUTRITION
Subtitle A--Supplemental Nutrition Assistance Program
SEC. 4001. FOOD DISTRIBUTION PROGRAM ON INDIAN RESERVATIONS.
Section 4(b)(6)(F) of the Food and Nutrition Act of 2008 (7
U.S.C. 2013(b)(6)(F)) is amended by striking ``2012'' and
inserting ``2017''.
SEC. 4002. STANDARD UTILITY ALLOWANCES BASED ON THE RECEIPT
OF ENERGY ASSISTANCE PAYMENTS.
(a) Standard Utility Allowances in the Supplemental
Nutrition Assistance Program.--Section 5(e)(6)(C) of the Food
and Nutrition Act of 2008 (7 U.S.C. 2014(e)(6)(C)) is
amended--
(1) in clause (i), by inserting ``, subject to clause
(iv)'' after ``Secretary''; and
(2) in clause (iv)(I), by striking ``the household still
incurs'' and all that follows through the end of the
subclause and inserting ``the payment received by, or made on
behalf of, the household exceeds $10 or a higher amount
annually, as determined by the Secretary.''.
(b) Conforming Amendment.--Section 2605(f)(2)(A) of the
Low-Income Home Energy Assistance Act of 1981 (42 U.S.C.
8624(f)(2)(A)) is amended by inserting before the semicolon
at the end ``, except that, for purposes of the supplemental
nutrition assistance program established under the Food and
Nutrition Act of 2008 (7 U.S.C. 2011 et seq.), such payments
or allowances exceed $10 or a higher amount annually, as
determined by the Secretary of Agriculture in accordance with
section 5(e)(6)(C)(iv)(I) of that Act (7 U.S.C.
2014(e)(6)(C)(iv)(I))''.
(c) Effective and Implementation Date.--
(1) In general.--Except as provided in paragraph (2), this
section and the amendments made by this section shall take
effect beginning on October 1, 2013, for all certification
periods beginning after that date.
(2) State option to delay implementation for current
recipients.--A State may, at the option of the State,
implement a policy that eliminates or minimizes the effect of
the amendments made by this section for households that
receive a standard utility allowance as of the date of
enactment of this Act for not more than a 180-day period
beginning on the date on which the amendments made by this
section would otherwise affect the benefits received by a
household.
SEC. 4003. ELIGIBILITY DISQUALIFICATIONS.
Section 6(e)(3)(B) of Food and Nutrition Act of 2008 (7
U.S.C. 2015(e)(3)(B)) is amended by striking ``section'' and
inserting the following: ``section, subject to the condition
that the course or program of study--
``(i) is part of a program of career and technical
education (as defined in section 3 of the Carl D. Perkins
Career and Technical Education Act of 2006 (20 U.S.C. 2302))
that may be completed in not more than 4 years at an
institution of higher education (as defined in section 102 of
the Higher Education Act of 1965 (20 U.S.C. 1002)); or
[[Page S4100]]
``(ii) is limited to remedial courses, basic adult
education, literacy, or English as a second language;''.
SEC. 4004. ENDING SUPPLEMENTAL NUTRITION ASSISTANCE PROGRAM
BENEFITS FOR LOTTERY OR GAMBLING WINNERS.
(a) In General.--Section 6 of the Food and Nutrition Act of
2008 (7 U.S.C. 2015) is amended by adding at the end the
following:
``(r) Ineligibility for Benefits Due to Receipt of
Substantial Lottery or Gambling Winnings.--
``(1) In general.--Any household in which a member receives
substantial lottery or gambling winnings, as determined by
the Secretary, shall lose eligibility for benefits
immediately upon receipt of the winnings.
``(2) Duration of ineligibility.--A household described in
paragraph (1) shall remain ineligible for participation until
the household meets the allowable financial resources and
income eligibility requirements under subsections (c), (d),
(e), (f), (g), (i), (k), (l), (m), and (n) of section 5.
``(3) Agreements.--As determined by the Secretary, each
State agency, to the maximum extent practicable, shall
establish agreements with entities responsible for the
regulation or sponsorship of gaming in the State to determine
whether individuals participating in the supplemental
nutrition assistance program have received substantial
lottery or gambling winnings.''.
(b) Conforming Amendments.--Section 5(a) of the Food and
Nutrition Act of 2008 (7 U.S.C. 2014(a)) is amended in the
second sentence by striking ``sections 6(b), 6(d)(2), and
6(g)'' and inserting ``subsections (b), (d)(2), (g), and (r)
of section 6''.
SEC. 4005. RETAIL FOOD STORES.
(a) Definition of Retail Food Store.--Subsection (o)(1)(A)
of section 3 of the Food and Nutrition Act of 2008 (7 U.S.C.
2012) (as redesignated by section 4016(a)(4)) is amended by
striking ``at least 2'' and inserting ``at least 3''.
(b) Alternative Benefit Delivery.--Section 7(f) of the Food
and Nutrition Act of 2008 (7 U.S.C. 2016(f)) is amended--
(1) by striking paragraph (2) and inserting the following:
``(2) Imposition of costs.--
``(A) In general.--Except as provided in subparagraph (B),
the Secretary shall require participating retail food stores
(including restaurants participating in a State option
restaurant program intended to serve the elderly, disabled,
and homeless) to pay 100 percent of the costs of acquiring,
and arrange for the implementation of, electronic benefit
transfer point-of-sale equipment and supplies, including
related services.
``(B) Exemptions.--The Secretary may exempt from
subparagraph (A)--
``(i) farmers' markets, military commissaries, nonprofit
food buying cooperatives, and establishments, organizations,
programs, or group living arrangements described in
paragraphs (5), (7), and (8) of section 3(k); and
``(ii) establishments described in paragraphs (3), (4), and
(9) of section 3(k), other than restaurants participating in
a State option restaurant program.''; and
(2) by adding at the end the following:
``(4) Termination of manual vouchers.--
``(A) In general.--Effective beginning on the date of
enactment of this paragraph, except as provided in
subparagraph (B), no State shall issue manual vouchers to a
household that receives supplemental nutrition assistance
under this Act or allow retail food stores to accept manual
vouchers as payment, unless the Secretary determines that the
manual vouchers are necessary, such as in the event of an
electronic benefit transfer system failure or a disaster
situation.
``(B) Exemptions.--The Secretary may exempt categories of
retail food stores or individual retail food stores from
subparagraph (A) based on criteria established by the
Secretary.
``(5) Unique identification number required.--The Secretary
shall require all parties providing electronic benefit
transfer services to provide for and maintain unique terminal
identification number information through the supplemental
nutrition assistance program electronic benefit transfer
transaction routing system.''.
(c) Electronic Benefit Transfers.--Section 7(h)(3)(B) of
the Food and Nutrition Act of 2008 (7 U.S.C. 2016(h)(3)(B))
is amended by striking ``is operational--'' and all that
follows through ``(ii) in the case of other participating
stores,'' and inserting ``is operational''.
(d) Approval of Retail Food Stores and Wholesale Food
Concerns.--Section 9 of the Food and Nutrition Act of 2008 (7
U.S.C. 2018) is amended--
(1) in subsection (a)--
(A) in the second sentence of paragraph (a)(1), by striking
``; and (C)'' and inserting ``; (C) whether the applicant is
located in an area with significantly limited access to food;
and (D)''; and
(2) by adding at the end the following:
``(4) Retail food stores with significant sales of excepted
items.--
``(A) In general.--No retail food store for which at least
45 percent of the total sales of the retail food store is
from the sale of excepted items described in section 3(k)(1)
may be authorized to accept and redeem benefits unless the
Secretary determines that the participation of the retail
food store is required for the effective and efficient
operation of the supplemental nutrition assistance program.
``(B) Application.--Subparagraph (A) shall be effective--
``(i) in the case of retail food stores applying to be
authorized for the first time, beginning on the date that is
1 year after the date of enactment of this paragraph; and
``(ii) in the case of retail food stores participating in
the program on the date of enactment of this paragraph,
during periodic reauthorization in accordance with paragraph
(2)(A).''; and
(3) by adding at the end the following:
``(g) EBT Service Requirement.--An approved retail food
store shall provide adequate EBT service as described in
section 7(h)(3)(B).''.
SEC. 4006. IMPROVING SECURITY OF FOOD ASSISTANCE.
Section 7(h)(8) of the Food and Nutrition Act of 2008 (7
U.S.C. 2016(h)(8)) is amended--
(1) by striking the paragraph heading and inserting
``Replacement of cards.--'';
(2) by striking ``A State'' and inserting the following:
``(A) Fees.--A State''; and
(3) by adding after subparagraph (A) (as so designated by
paragraph (2)) the following:
``(B) Purposeful loss of cards.--
``(i) In general.--Subject to terms and conditions
established by the Secretary in accordance with clause (ii),
if a household makes excessive requests for replacement of
the electronic benefit transfer card of the household, the
Secretary may require a State agency to decline to issue a
replacement card to the household unless the household, upon
request of the State agency, provides an explanation for the
loss of the card.
``(ii) Requirements.--The terms and conditions established
by the Secretary shall provide that--
``(I) the household be given the opportunity to provide the
requested explanation and meet the requirements under this
paragraph promptly;
``(II) after an excessive number of lost cards, the head of
the household shall be required to review program rights and
responsibilities with State agency personnel authorized to
make determinations under section 5(a); and
``(III) any action taken, including actions required under
section 6(b)(2), other than the withholding of the electronic
benefit transfer card until an explanation described in
subclause (I) is provided, shall be consistent with the due
process protections under section 6(b) or 11(e)(10), as
appropriate.
``(C) Protecting vulnerable persons.--In implementing this
paragraph, a State agency shall act to protect homeless
persons, persons with disabilities, victims of crimes, and
other vulnerable persons who lose electronic benefit transfer
cards but are not intentionally committing fraud.
``(D) Effect on eligibility.--While a State may decline to
issue an electronic benefits transfer card until a household
satisfies the requirements under this paragraph, nothing in
this paragraph shall be considered a denial of, or limitation
on, the eligibility for benefits under section 5.''.
SEC. 4007. TECHNOLOGY MODERNIZATION FOR RETAIL FOOD STORES.
(a) Mobile Technologies.--Section 7(h) of the Food and
Nutrition Act of 2008 (7 U.S.C. 2016(h)) (as amended by
section 4016(e)) is amended by adding at the end the
following:
``(14) Mobile technologies.--
``(A) In general.--Subject to subparagraph (B), the
Secretary shall approve retail food stores to redeem benefits
through electronic means other than wired point of sale
devices for electronic benefit transfer transactions, if the
retail food stores--
``(i) establish recipient protections regarding privacy,
ease of use, access, and support similar to the protections
provided for transactions made in retail food stores;
``(ii) bear the costs of obtaining, installing, and
maintaining mobile technologies, including mechanisms needed
to process EBT cards and transaction fees;
``(iii) demonstrate the foods purchased with benefits
issued under this section through mobile technologies are
purchased at a price not higher than the price of the same
food purchased by other methods used by the retail food
store, as determined by the Secretary;
``(iv) provide adequate documentation for each authorized
transaction, as determined by the Secretary; and
``(v) meet other criteria as established by the Secretary.
``(B) Demonstration project on acceptance of benefits of
mobile transactions.--
``(i) In general.--Before authorizing implementation of
subparagraph (A) in all States, the Secretary shall pilot the
use of mobile technologies determined by the Secretary to be
appropriate to test the feasibility and implications for
program integrity, by allowing retail food stores to accept
benefits from recipients of supplemental nutrition assistance
through mobile transactions.
``(ii) Demonstration projects.--To be eligible to
participate in a demonstration project under clause (i), a
retail food store shall submit to the Secretary for approval
a plan that includes--
``(I) a description of the technology;
``(II) the manner by which the retail food store will
provide proof of the transaction to households;
``(III) the provision of data to the Secretary, consistent
with requirements established by the Secretary, in a manner
that allows the Secretary to evaluate the impact of the
demonstration on participant access, ease of use, and program
integrity; and
[[Page S4101]]
``(IV) such other criteria as the Secretary may require.
``(iii) Date of completion.--The demonstration projects
under this subparagraph shall be completed and final reports
submitted to the Secretary by not later than July 1, 2015.
``(C) Report to congress.--The Secretary shall--
``(i) by not later than January 1, 2016, authorize
implementation of subparagraph (A) in all States, unless the
Secretary makes a finding, based on the data provided under
subparagraph (B), that implementation in all States is not in
the best interest of the supplemental nutrition assistance
program; and
``(ii) if the determination made in clause (i) is not to
implement subparagraph (A) in all States, submit a report to
the Committee on Agriculture of the House of Representatives
and the Committee on Agriculture, Nutrition, and Forestry of
the Senate that includes the basis of the finding.''.
(b) Acceptance of Benefits Through On-line Transactions.--
(1) In general.--Section 7 of the Food and Nutrition Act of
2008 (7 U.S.C. 2016) is amended by adding at the end the
following:
``(k) Option to Accept Program Benefits Through On-line
Transactions.--
``(1) In general.--Subject to paragraph (4), the Secretary
shall approve retail food stores to accept benefits from
recipients of supplemental nutrition assistance through on-
line transactions.
``(2) Requirements to accept benefits.--A retail food store
seeking to accept benefits from recipients of supplemental
nutrition assistance through on-line transactions shall--
``(A) establish recipient protections regarding privacy,
ease of use, access, and support similar to the protections
provided for transactions made in retail food stores;
``(B) ensure benefits are not used to pay delivery,
ordering, convenience, or other fees or charges;
``(C) clearly notify participating households at the time a
food order is placed--
``(i) of any delivery, ordering, convenience, or other fee
or charge associated with the food purchase; and
``(ii) that any such fee cannot be paid with benefits
provided under this Act;
``(D) ensure the security of on-line transactions by using
the most effective technology available that the Secretary
considers appropriate and cost-effective and that is
comparable to the security of transactions at retail food
stores; and
``(E) meet other criteria as established by the Secretary.
``(3) State agency action.--Each State agency shall ensure
that recipients of supplemental nutrition assistance can use
benefits on-line as described in this subsection as
appropriate.
``(4) Demonstration project on acceptance of benefits
through on-line transactions.--
``(A) In general.--Before the Secretary authorizes
implementation of paragraph (1) in all States, the Secretary
shall carry out a number of demonstration projects as
determined by the Secretary to test the feasibility of
allowing retail food stores to accept benefits through on-
line transactions.
``(B) Demonstration projects.--To be eligible to
participate in a demonstration project under subparagraph
(A), a retail food store shall submit to the Secretary for
approval a plan that includes--
``(i) a method of ensuring that benefits may be used to
purchase only eligible items under this Act;
``(ii) a description of the method of educating participant
households about the availability and operation of on-line
purchasing;
``(iii) adequate testing of the on-line purchasing option
prior to implementation;
``(iv) the provision of data as requested by the Secretary
for purposes of analyzing the impact of the project on
participant access, ease of use, and program integrity;
``(v) reports on progress, challenges, and results, as
determined by the Secretary; and
``(vi) such other criteria, including security criteria, as
established by the Secretary.
``(C) Date of completion.--The demonstration projects under
this paragraph shall be completed and final reports submitted
to the Secretary by not later than July 1, 2015.
``(5) Report to congress.--The Secretary shall--
``(A) by not later than January 1, 2016, authorize
implementation of paragraph (1) in all States, unless the
Secretary makes a finding, based on the data provided under
paragraph (4), that implementation in all States is not in
the best interest of the supplemental nutrition assistance
program; and
``(B) if the determination made in subparagraph (A) is not
to implement in all States, submit a report to the Committee
on Agriculture of the House of Representatives and the
Committee on Agriculture, Nutrition, and Forestry of the
Senate that includes the basis of the finding.''.
(2) Conforming amendments.--
(A) Section 7(b) of the Food and Nutrition Act of 2008 (7
U.S.C. 2016(b)) is amended by striking ``purchase food in
retail food stores'' and inserting ``purchase food from
retail food stores''.
(B) Section 10 of the Food and Nutrition Act of 2008 (7
U.S.C. 2019) is amended in the first sentence by inserting
``retail food stores authorized to accept and redeem benefits
through on-line transactions shall be authorized to accept
benefits prior to the delivery of food if the delivery occurs
within a reasonable time of the purchase, as determined by
the Secretary,'' after ``food so purchased,''.
(c) Savings Clause.--Nothing in this section or an
amendment made by this section alter any requirements of the
Food and Nutrition Act of 2008 (7 U.S.C. 2011 et seq.) unless
specifically authorized in this section or an amendment made
by this section.
SEC. 4008. USE OF BENEFITS FOR PURCHASE OF COMMUNITY-
SUPPORTED AGRICULTURE SHARE.
Section 10 of the Food and Nutrition Act of 2008 (7 U.S.C.
2019) (as amended by section 4007(b)(2)(B)) is amended in the
first sentence by inserting ``agricultural producers who
market agricultural products directly to consumers shall be
authorized to redeem benefits for the initial cost of the
purchase of a community-supported agriculture share for an
appropriate time in advance of food delivery as determined by
the Secretary,'' after ``as determined by the Secretary,''.
SEC. 4009. RESTAURANT MEALS PROGRAM.
(a) In General.--Section 11(e) of the Food and Nutrition
Act of 2008 (7 U.S.C. 2020(e)) is amended--
(1) in paragraph (22), by striking ``and'' at the end;
(2) in paragraph (23), by striking the period at the end of
subparagraph (C) and inserting ``; and''; and
(3) by adding at the end the following:
``(24) if the State elects to carry out a program to
contract with private establishments to offer meals at
concessional prices, as described in paragraphs 3, 4, and 9
of section 3(k)--
``(A) the plans of the State agency for operating the
program, including--
``(i) documentation of a need that eligible homeless,
elderly, and disabled clients are underserved in a particular
geographic area;
``(ii) the manner by which the State agency will limit
participation to only those private establishments that the
State determines necessary to meet the need identified in
clause (i); and
``(iii) any other conditions the Secretary may prescribe,
such as the level of security necessary to ensure that only
eligible recipients participate in the program; and
``(B) a report by the State agency to the Secretary
annually, the schedule of which shall be established by the
Secretary, that includes--
``(i) the number of households and individual recipients
authorized to participate in the program, including any
information on whether the individual recipient is elderly,
disabled, or homeless; and
``(ii) an assessment of whether the program is meeting an
established need, as documented under subparagraph (A)(i).''.
(b) Approval of Retail Food Stores and Wholesale Food
Concerns.--Section 9 of the Food and Nutrition Act of 2008 (7
U.S.C. 2018) (as amended by section 4005(d)(3)) is amended by
adding at the end the following:
``(h) Private Establishments.--
``(1) In general.--Subject to paragraph (2), no private
establishment that contracts with a State agency to offer
meals at concessional prices as described in paragraphs 3, 4,
and 9 of section 3(k) may be authorized to accept and redeem
benefits unless the Secretary determines that the
participation of the private establishment is required to
meet a documented need in accordance with section 11(e)(24).
``(2) Existing contracts.--
``(A) In general.--If, on the day before the date of
enactment of this subsection, a State has entered into a
contract with a private establishment described in paragraph
(1) and the Secretary has not determined that the
participation of the private establishment is necessary to
meet a documented need in accordance with section 11(e)(24),
the Secretary shall allow the operation of the private
establishment to continue without that determination of need
for a period not to exceed 180 days from the date on which
the Secretary establishes determination criteria, by
regulation, under section 11(e)(24).
``(B) Justification.--If the Secretary makes a
determination to terminate a contract with a private
establishment that is in effect on the date of enactment of
this subsection, the Secretary shall provide justification to
the State in which the private establishment is located for
that termination.
``(3) Report to congress.--Not later than 90 days after
September 30, 2013, and 90 days after the last day of each
fiscal year thereafter, the Secretary shall report to the
Committee on Agriculture of the House of Representatives and
the Committee on Agriculture, Nutrition, and Forestry of the
Senate on the effectiveness of a program under this
subsection using any information received from States under
section 11(e)(24) as well as any other information the
Secretary may have relating to the manner in which benefits
are used.''.
(c) Conforming Amendments.--Section 3(k) of the Food and
Nutrition Act of 2008 (7 U.S.C. 2012(k)) is amended by
inserting ``subject to section 9(h)'' after ``concessional
prices'' each place it appears.
SEC. 4010. QUALITY CONTROL ERROR RATE DETERMINATION.
Section 16(c) of the Food and Nutrition Act of 2008 (7
U.S.C. 2025(c)) is amended by adding at the end the
following:
``(10) Tolerance level.--For the purposes of this
subsection, the Secretary shall set the tolerance level for
excluding small errors at $25.''.
SEC. 4011. AUTHORIZATION OF APPROPRIATIONS.
Section 18(a)(1) of the Food and Nutrition Act of 2008 (7
U.S.C. 2027(a)(1)) is amended in
[[Page S4102]]
the first sentence by striking ``2012'' and inserting
``2017''.
SEC. 4012. ASSISTANCE FOR COMMUNITY FOOD PROJECTS.
Section 25 of the Food and Nutrition Act of 2008 (7 U.S.C.
2034) is amended--
(1) in subsection (a)(1)(B)(ii)--
(A) by striking subclause (I); and
(B) by redesignating subclauses (II) and (III) as
subclauses (I) and (II), respectively; and
(2) in subsection (b), by adding at the end the following:
``(3) Funding.--
``(A) In general.--Out of any funds in the Treasury not
otherwise appropriated, the Secretary of the Treasury shall
transfer to the Secretary to carry out this section not less
than $5,000,000 for fiscal year 2013 and each fiscal year
thereafter.
``(B) Receipt and acceptance.--The Secretary shall be
entitled to receive, shall accept, and shall use to carry out
this section the funds transferred under subparagraph (A),
without further appropriation.
``(C) Maintenance of funding.--The funding provided under
subparagraph (A) shall supplement (and not supplant) other
Federal funding made available to the Secretary to carry out
this section.''.
SEC. 4013. EMERGENCY FOOD ASSISTANCE.
(a) Purchase of Commodities.--Section 27(a) of the Food and
Nutrition Act of 2008 (7 U.S.C. 2036(a)) is amended--
(1) in paragraph (1), by striking ``2008 through 2012'' and
inserting ``2012 through 2017'';
(2) by striking paragraph (2) and inserting the following:
``(2) Amounts.--The Secretary shall use to carry out
paragraph (1)--
``(A) for fiscal year 2012, $260,000,000; and
``(B) for each subsequent fiscal year, the dollar amount of
commodities specified in subparagraph (A) adjusted by the
percentage by which the thrifty food plan has been adjusted
under section 3(u)(4) between June 30, 2012, and June 30 of
the immediately preceding fiscal year, and subsequently
increased by--
``(i) for fiscal year 2013, $28,000,000;
``(ii) for fiscal year 2014, $24,000,000;
``(iii) for fiscal year 2015, $20,000,000;
``(iv) for fiscal year 2016, $18,000,000; and
``(v) for fiscal year 2017 and each fiscal year thereafter,
$10,000,000.''; and
(3) by adding at the end the following:
``(3) Funds availability.--For purposes of the funds
described in this subsection, the Secretary shall--
``(A) make the funds available for 2 fiscal years; and
``(B) allow States to carry over unexpended balances to the
next fiscal year pursuant to such terms and conditions as are
determined by the Secretary.''.
(b) Emergency Food Program Infrastructure Grants.--Section
209(d) of the Emergency Food Assistance Act of 1983 (7 U.S.C.
7511a(d)) is amended by striking ``2012'' and inserting
``2017''.
SEC. 4014. NUTRITION EDUCATION.
Section 28(b) of the Food and Nutrition Act of 2008 (7
U.S.C. 2036a(b)) is amended by inserting ``and physical
activity'' after ``healthy food choices''.
SEC. 4015. RETAIL FOOD STORE AND RECIPIENT TRAFFICKING.
The Food and Nutrition Act of 2008 (7 U.S.C. 2011 et seq.)
is amended by adding at the end the following:
``SEC. 29. RETAIL FOOD STORE AND RECIPIENT TRAFFICKING.
``(a) Purpose.--The purpose of this section is to provide
the Department of Agriculture with additional resources to
prevent trafficking in violation of this Act by strengthening
recipient and retail food store program integrity.
``(b) Use of Funds.--Additional funds are provided under
this section to supplement the retail food store and
recipient integrity activities of the Department.
``(c) Funding.--
``(1) In general.--Out of any funds in the Treasury not
otherwise appropriated, the Secretary of the Treasury shall
transfer to the Secretary to carry out this section not less
than $18,500,000 for fiscal year 2013 and each fiscal year
thereafter.
``(2) Receipt and acceptance.--The Secretary shall be
entitled to receive, shall accept, and shall use to carry out
this section the funds transferred under paragraph (1),
without further appropriation.
``(3) Maintenance of funding.--The funding provided under
paragraph (1) shall supplement (and not supplant) other
Federal funding for programs carried out under this Act.''.
SEC. 4016. TECHNICAL AND CONFORMING AMENDMENTS.
(a) Section 3 of the Food and Nutrition Act of 2008 (7
U.S.C. 2012) is amended--
(1) in subsection (g), by striking ``coupon,'' and
inserting ``coupon'';
(2) in subsection (k)(7), by striking ``or are'' and
inserting ``and'';
(3) by striking subsection (l);
(4) by redesignating subsections (m) through (t) as
subsections (l) through (s), respectively; and
(5) by inserting after subsection (s) (as so redesignated)
the following:
``(t) `Supplemental nutrition assistance program' means the
program operated pursuant to this Act.''.
(b) Section 4(a) of the Food and Nutrition Act of 2008 (7
U.S.C. 2013(a)) is amended in the last sentence by striking
``benefits'' and inserting ``Benefits''.
(c) Section 5 of the Food and Nutrition Act of 2008 (7
U.S.C. 2014) is amended--
(1) in the last sentence of subsection (i)(2)(D), by
striking ``section 13(b)(2)'' and inserting ``section
13(b)''; and
(2) in subsection (k)(4)(A), by striking ``paragraph
(2)(H)'' and inserting ``paragraph (2)(G)''.
(d) Section 6(d)(4) of the Food and Nutrition Act of 2008
(7 U.S.C. 2015(d)(4)) is amended in subparagraphs (B)(vii)
and (F)(iii) by indenting both clauses appropriately.
(e) Section 7(h) of the Food and Nutrition Act of 2008 (7
U.S.C. 2016(h)) is amended by redesignating the second
paragraph (12) (relating to interchange fees) as paragraph
(13).
(f) Section 9(a) of the Food and Nutrition Act of 2008 (7
U.S.C. 2018(a)) is amended by indenting paragraph (3)
appropriately.
(g) Section 12 of the Food and Nutrition Act of 2008 (7
U.S.C. 2021) is amended--
(1) in subsection (b)(3)(C), by striking ``civil money
penalties'' and inserting ``civil penalties''; and
(2) in subsection (g)(1), by striking ``(7 U.S.C. 1786)''
and inserting ``(42 U.S.C. 1786)''.
(h) Section 15(b)(1) of the Food and Nutrition Act of 2008
(7 U.S.C. 2024(b)(1)) is amended in the first sentence by
striking ``an benefit'' and inserting ``a benefit''.
(i) Section 16(a) of the Food and Nutrition Act of 2008 (7
U.S.C. 2025(a)) is amended in the proviso following paragraph
(8) by striking ``as amended.''.
(j) Section 18(e) of the Food and Nutrition Act of 2008 (7
U.S.C. 2027(e)) is amended in the first sentence by striking
``sections 7(f)'' and inserting ``section 7(f)''.
(k) Section 22(b)(10)(B)(i) of the Food and Nutrition Act
of 2008 (7 U.S.C. 2031(b)(10)(B)(i)) is amended in the last
sentence by striking ``Food benefits'' and inserting
``Benefits''.
(l) Section 26(f)(3)(C) of the Food and Nutrition Act of
2008 (7 U.S.C. 2035(f)(3)(C)) is amended by striking
``subsection'' and inserting ``subsections''.
(m) Section 27(a)(1) of the Food and Nutrition Act of 2008
(7 U.S.C. 2036(a)(1)) is amended by striking ``(Public Law 98
8; 7 U.S.C. 612c note)'' and inserting ``(7 U.S.C. 7515)''.
(n) Section 509 of the Older Americans Act of 1965 (42
U.S.C. 3056g) is amended in the section heading by striking
``FOOD STAMP PROGRAMS'' and inserting ``SUPPLEMENTAL
NUTRITION ASSISTANCE PROGRAMS''.
(o) Section 4115(c)(2)(H) of the Food, Conservation, and
Energy Act of 2008 (Public Law 110 246; 122 Stat. 1871) is
amended by striking ``531'' and inserting ``454''.
SEC.__. EFFECTIVE DATE.
This Title shall become effective 3 days after enactment.
______
SA 2392. Mr. REID proposed an amendment to amendment SA 2391 proposed
by Mr. Reid to the bill S. 3240, to reauthorize agricultural programs
through 2017, and for other purposes; as follows:
Beginning on page 1, strike line 2 and all that follows
through page 31, line 10, and insert the following:
Subtitle A--Supplemental Nutrition Assistance Block Grant Program
SEC. 4001. PURPOSE.
The purpose of this subtitle is to empower States with
programmatic flexibility and financial predictability in
designing and operating State programs--
(1) to raise the levels of nutrition among low-income
households;
(2) to provide supplemental nutrition assistance benefits
to households with income and resources that are insufficient
to meet the costs of providing adequate nutrition; and
(3) to provide States the flexibility to provide new and
innovative means to accomplish paragraphs (1) and (2) based
on the population and particular needs of each State.
SEC. 4002. STATE PLANS.
(a) In General.--To receive a grant under section 4003, a
State shall submit to the Secretary a written plan that
describes the manner in which the State intends to conduct a
supplemental nutrition assistance program that--
(1) is designed to serve all political subdivisions in the
State;
(2) provides supplemental nutrition assistance benefits to
low-income households for the sole purpose of purchasing
food, as defined by the applicable State agency in the plan;
and
(3) limits participation in the supplemental nutrition
assistance program to those households the incomes and other
financial resources of which, held singly or in joint
ownership, are determined by the State to be a substantial
limiting factor in permitting the members of the household to
obtain a more nutritious diet.
(b) Requirements.--Each plan shall include--
(1) specific objective criteria for--
(A) the determination of eligibility for nutritional
assistance for low-income households, which may be based on
standards relating to income, assets, family composition,
beneficiary population, age, work, current participation in
other Federal government means-tested programs, and work,
student enrollment, or training requirements; and
(B) fair and equitable treatment of recipients and
provision of supplemental nutrition assistance benefits to
all low-income households in the State; and
(2) a description of--
(A) benefits provided based on the aggregate grant amount;
and
[[Page S4103]]
(B) the manner in which supplemental nutrition assistance
benefits will be provided under the State plan, including the
use of State administration organizations, private
contractors, or consultants.
(c) Certification of the Administration of the Program.--
(1) In general.--The Governor of each State that receives a
grant under section 4003 shall issue a certification to the
Secretary in accordance with this subsection.
(2) Administration.--The certification shall specify which
1 or more State agencies will administer and supervise the
State plan under this section.
(3) Provision of benefits only to low-income individuals
and households.--
(A) In general.--The certification shall certify that the
State will--
(i) only provide supplemental nutrition assistance to low-
income individuals and households in the State; and
(ii) take such action as is necessary to prohibit any
household or member of a household that does not meet the
criteria described in subparagraph (B) from receiving
supplemental nutrition assistance benefits.
(B) Criteria.--A household shall meet the criteria
described in this subparagraph if the household is--
(i) a household in which each member receives benefits
under the supplemental security income program established
under title XVI of the Social Security Act (42 U.S.C. 1381 et
seq.);
(ii) a low-income household that does not exceed 100
percentage of the poverty line (as defined in section 673(2)
of the Community Services Block Grant Act (42 U.S.C. 9902(2),
including any revision required by such section)) for a
family of the size involved as the State shall establish; or
(iii) a household in which each member receives benefits
under a State or Federal general assistance program that
complies with income criteria standards comparable to or more
restrictive than the standards established under clause (ii).
(4) Provision of benefits only to citizens and lawful
permanent residents of the united states.--The certification
shall certify that the State will--
(A) only provide supplemental nutrition assistance to
citizens and lawful permanent residents of the United States;
and
(B) take such action as is necessary to prohibit
supplemental nutrition assistance benefits from being
provided to any individual or household a member of which is
not a citizen or lawful permanent resident of the United
States.
(5) Certification of standards and procedures to ensure
against program fraud, waste and abuse.--The certification
shall certify that the State--
(A) has established and will continue to enforce standards
and procedures to ensure against program fraud, waste, and
abuse, including standards and procedures concerning
nepotism, conflicts of interest among individuals responsible
for the administration and supervision of the State program,
kickbacks, and the use of political patronage; and
(B) will prohibit from further receipt of benefits under
the program any recipient who attempts to receive benefits
fraudulently.
(6) Limitation on secretarial authority.--The Secretary--
(A) may only review a State plan submitted under this
section for the purpose of confirming that a State has
submitted the required documentation; and
(B) shall not have the authority to approve or deny a State
plan submitted under this section or to otherwise inhibit or
control the expenditure of grants paid to a State under
section 4003, unless a State plan does not comply with the
requirements of this section.
SEC. 4003. GRANTS TO STATES.
(a) In General.--Beginning 120 days after the date of
enactment of this Act, and annually thereafter, each State
that has submitted a plan that meets the requirements of
section 4002 shall receive from the Secretary a grant in an
amount determined under subsection (b).
(b) Amounts of Grants.--
(1) In general.--Subject to paragraph (3), a grant received
under subsection (a) shall be in an amount equal to the
product of--
(A) the amount made available under section 4005 for the
applicable fiscal year; and
(B) the proportion that--
(i) the number of individuals residing in the State whose
income does not exceed 100 percent of the poverty line
described in section 4002(c)(3)(B)(ii) applicable to a family
of the size involved; bears to
(ii) the number of such individuals in all States that have
submitted a plan under section 4002 for the applicable fiscal
year, based on data for the most recent fiscal year for which
data is available.
(2) Pro rata adjustments.--The Secretary shall make pro
rata adjustments in the amounts determined for States under
paragraph (1) for each fiscal year as necessary to ensure
that--
(A) the total amount appropriated for the applicable fiscal
year under section 4005 is allotted among all States that
submit a plan under section 4002; and
(B) the total amount of all supplemental nutrition
assistance grants for States determined for the fiscal year
does not exceed the total amount appropriated for the fiscal
year.
(3) Administrative provisions.--
(A) Quarterly payments.--The Secretary shall make each
supplemental nutrition assistance grant payable to a State
for a fiscal year under this section in quarterly
installments.
(B) Computation and certification of payment to states.--
(i) Computation.--The Secretary shall estimate the amount
to be paid to each State for each quarter under this section
based on a report filed by the State that shall include--
(I) an estimate by the State of the total amount to be
expended by the State during the applicable quarter under the
State program funded under this subtitle; and
(II) such other information as the Secretary may require.
(ii) Certification.--The Secretary shall certify to the
Secretary of the Treasury the amount estimated under clause
(i) with respect to each State, adjusted to the extent of any
overpayment or underpayment--
(I) that the Secretary determines was made under this
subtitle to the State for any prior quarter; and
(II) with respect to which adjustment has not been made
under this paragraph.
SEC. 4004. USE OF GRANTS.
(a) In General.--Subject to subsection (b), a State that
receives a grant under section 4003 may use the grant in any
manner that is reasonably demonstrated to accomplish the
purposes of this subtitle.
(b) Limitation on Use of Grant for Administrative
Purposes.--A State may not use more than 3 percent of the
amount of a grant received for a fiscal year under section
4003 for administrative purposes.
SEC. 4005. AUTHORIZATION OF APPROPRIATIONS.
There is authorized to be appropriated to carry out this
subtitle $45,000,000,000 for fiscal year 2013 and each fiscal
year thereafter.
SEC. 4006. REPEAL.
(a) In General.--Effective 120 days after the date of
enactment of this Act, the Food and Nutrition Act of 2008 (7
U.S.C. 2011 et seq.) is repealed.
(b) Relationship to Other Law.--Any reference in this Act,
an amendment made by this Act, or any other Act to the
supplemental nutrition assistance program shall be considered
to be a reference to the supplemental nutrition assistance
block grant program under this subtitle.
______
SA 2393. Mr. REID proposed an amendment to amendment SA 2392 proposed
by Mr. Reid to the amendment SA 2391 proposed by Mr. Reid to the bill
S. 3240, to reauthorize agricultural programs through 2017, and for
other purposes; as follows:
SEC. __. SHORT TITLE.
This subtitle may be cited as the ``Stop Unfair Giveaways
and Restrictions Act of 2012'' or ``SUGAR Act of 2012''.
SEC. __. SUGAR PROGRAM.
(a) In General.--Section 156 of the Federal Agriculture
Improvement and Reform Act of 1996 (7 U.S.C. 7272) is
amended--
(1) in subsection (d), by striking paragraph (1) and
inserting the following:
``(1) Loans.--The Secretary shall carry out this section
through the use of recourse loans.'';
(2) by redesignating subsection (i) as subsection (j);
(3) by inserting after subsection (h) the following:
``(i) Phased Reduction of Loan Rate.--For each of the 2012,
2013, and 2014 crops of sugar beets and sugarcane, the
Secretary shall lower the loan rate for each succeeding crop
in a manner that progressively and uniformly lowers the loan
rate for sugar beets and sugarcane to $0 for the 2015
crop.''; and
(4) in subsection (j) (as redesignated), by striking
``2012'' and inserting ``2014''.
(b) Prospective Repeal.--Effective beginning with the 2015
crop of sugar beets and sugarcane, section 156 of the Federal
Agriculture Improvement and Reform Act of 1996 (7 U.S.C.
7272) is repealed.
SEC. __. ELIMINATION OF SUGAR PRICE SUPPORT AND PRODUCTION
ADJUSTMENT PROGRAMS.
(a) In General.--Notwithstanding any other provision of
law--
(1) a processor of any of the 2015 or subsequent crops of
sugarcane or sugar beets shall not be eligible for a loan
under any provision of law with respect to the crop; and
(2) the Secretary may not make price support available,
whether in the form of a loan, payment, purchase, or other
operation, for any of the 2015 and subsequent crops of sugar
beets and sugarcane by using the funds of the Commodity
Credit Corporation or other funds available to the Secretary.
(b) Termination of Marketing Quotas and Allotments.--
(1) In general.--Part VII of subtitle B of title III of the
Agricultural Adjustment Act of 1938 (7 U.S.C. 1359aa et seq.)
is repealed.
(2) Conforming amendment.--Section 344(f)(2) of the
Agricultural Adjustment Act of 1938 (7 U.S.C. 1344(f)(2)) is
amended by striking ``sugar cane for sugar, sugar beets for
sugar,''.
(c) General Powers.--
(1) Section 32 activities.--Section 32 of the Act of August
24, 1935 (7 U.S.C. 612c), is amended in the second sentence
of the first paragraph--
(A) in paragraph (1), by inserting ``(other than sugar
beets and sugarcane)'' after ``commodities''; and
(B) in paragraph (3), by inserting ``(other than sugar
beets and sugarcane)'' after ``commodity''.
(2) Powers of commodity credit corporation.--Section 5(a)
of the Commodity Credit
[[Page S4104]]
Corporation Charter Act (15 U.S.C. 714c(a)) is amended by
inserting ``, sugar beets, and sugarcane'' after ``tobacco''.
(3) Price support for nonbasic agricultural commodities.--
Section 201(a) of the Agricultural Act of 1949 (7 U.S.C.
1446(a)) is amended by striking ``milk, sugar beets, and
sugarcane'' and inserting ``, and milk''.
(4) Commodity credit corporation storage payments.--Section
167 of the Federal Agriculture Improvement and Reform Act of
1996 (7 U.S.C. 7287) is repealed.
(5) Suspension and repeal of permanent price support
authority.--Section 171(a)(1) of the Federal Agriculture
Improvement and Reform Act of 1996 (7 U.S.C. 7301(a)(1)) is
amended--
(A) by striking subparagraph (E); and
(B) by redesignating subparagraphs (F) through (I) as
subparagraphs (E) through (H), respectively.
(6) Storage facility loans.--Section 1402(c) of the Farm
Security and Rural Investment Act of 2002 (7 U.S.C. 7971) is
repealed.
(7) Feedstock flexibility program for bioenergy
producers.--Effective beginning with the 2013 crop of sugar
beets and sugarcane, section 9010 of the Farm Security and
Rural Investment Act of 2002 (7 U.S.C. 8110) is repealed.
(d) Transition Provisions.--This section and the amendments
made by this section shall not affect the liability of any
person under any provision of law as in effect before the
application of this section and the amendments made by this
section.
SEC. __. TARIFF-RATE QUOTAS.
(a) Establishment.--Except as provided in subsection (c)
and notwithstanding any other provision of law, not later
than October 1, 2012, the Secretary shall develop and
implement a program to increase the tariff-rate quotas for
raw cane sugar and refined sugars for a quota year in a
manner that ensures--
(1) a robust and competitive sugar processing industry in
the United States; and
(2) an adequate supply of sugar at reasonable prices in the
United States.
(b) Factors.--In determining the tariff-rate quotas
necessary to satisfy the requirements of subsection (a), the
Secretary shall consider the following:
(1) The quantity and quality of sugar that will be subject
to human consumption in the United States during the quota
year.
(2) The quantity and quality of sugar that will be
available from domestic processing of sugarcane, sugar beets,
and in-process beet sugar.
(3) The quantity of sugar that would provide for reasonable
carryover stocks.
(4) The quantity of sugar that will be available from
carryover stocks for human consumption in the United States
during the quota year.
(5) Consistency with the obligations of the United States
under international agreements.
(c) Exemption.--Subsection (a) shall not include specialty
sugar.
(d) Definitions.--In this section, the terms ``quota year''
and ``human consumption'' have the meaning such terms had
under section 359k of the Agricultural Adjustment Act of 1938
(7 U.S.C. 1359kk) (as in effect on the day before the date of
the enactment of this Act).
SEC. __. APPLICATION.
Except as otherwise provided in this subtitle, this
subtitle and the amendments made by this subtitle shall apply
beginning with the 2012 crop of sugar beets and sugarcane.
______
SA 2394. Mr. DeMINT (for himself and Mr. Lee) submitted an amendment
intended to be proposed by him to the bill S. 3240, to reauthorize
agricultural programs through 2017, and for other purposes; which was
ordered to lie on the table; as follows:
At the appropriate place, insert the following:
SEC. ___. CAPPING AND REDUCING THE BALANCE SHEET OF THE
FEDERAL RESERVE SYSTEM.
(a) In General.--Notwithstanding any other provision of
law, no action may be taken by the Board of Governors of the
Federal Reserve System or the Federal Open Market Committee
on or after the date of enactment of this Act that would
result in the total of the factors affecting reserve balances
of depository institutions exceeding the balance as of June
8, 2012.
(b) Sense of Congress.--It is the sense of Congress that
the Federal Reserve System should expeditiously take
substantial steps to reduce the size of its balance sheet to
levels below those that prevailed prior to the financial
crisis of 2008.
______
SA 2395. Mr. AKAKA submitted an amendment intended to be proposed by
him to the bill S. 3240, to reauthorize agricultural programs through
2017, and for other purposes; which was ordered to lie on the table; as
follows:
On page 751, strike line 23 and insert the following:
``SEC. 3915. SUBSTANTIALLY UNDERSERVED TRUST AREAS.
``(a) Definitions.--In this section:
``(1) Eligible program.--The term `eligible program' means
a program administered by the Secretary and authorized in--
``(A) this Act;
``(B) the Rural Electrification Act of 1936 (7 U.S.C. 901
et seq.); or
``(C) title V of the Housing Act of 1949 (42 U.S.C. 1471 et
seq.).
``(2) Substantially underserved trust area.--The term
`substantially underserved trust area' means a community in
`trust land' (as defined in section 3765 of title 38, United
States Code).
``(b) Initiative.--The Secretary, in consultation with
local governments and Federal agencies, may implement an
initiative to identify and improve the availability of
eligible programs in communities in substantially underserved
trust areas.
``(c) Authority of Secretary.--In carrying out subsection
(b), the Secretary--
``(1) may make available from loan or loan guarantee
programs administered by the Secretary to qualified entities
or applicants financing with an interest rate as low as 2
percent and with extended repayment terms;
``(2) may waive nonduplication restrictions, matching fund
requirements, or credit support requirements from any loan or
grant program administered by the Secretary to facilitate the
construction, acquisition, or improvement of infrastructure,
or for other purposes;
``(3) may give the highest funding priority to designated
projects in substantially underserved trust areas; and
``(4) shall only make loans or loan guarantees that are
found to be financially feasible and that provide eligible
program benefits to substantially underserved trust areas.
``(d) Eligibility of Trust Land for Eligible Programs.--
Notwithstanding any other provision of law, for purposes of
eligibility for eligible programs, trust land (as defined in
section 3765 of title 38, United States Code) shall be
considered by the Secretary to be a rural area.
``(e) Report.--Each year, the Secretary shall submit to
Congress a report that describes--
``(1) the progress of the initiative implemented under
subsection (b); and
``(2) recommendations for any regulatory or legislative
changes that would be appropriate to improve services to
substantially underserved trust areas.
``SEC. 3916. REGULATIONS.
On page 752, strike lines 17 through 21 and insert the
following:
(c) Section 306F of the Rural Electrification Act of 1936
(7 U.S.C. 936f) is repealed.
______
SA 2396. Mr. AKAKA submitted an amendment intended to be proposed by
him to the bill S. 3240, to reauthorize agricultural programs through
2017, and for other purposes; which was ordered to lie on the table; as
follows:
On page 1009, after line 11, add the following:
SEC. 12207. OFFICE OF TRIBAL RELATIONS.
(a) In General.--Title III of the Department of Agriculture
Reorganization Act of 1994 is amended by adding after section
308 (7 U.S.C. 3125a note; Public Law 103 354) the following:
``SEC. 309. OFFICE OF TRIBAL RELATIONS.
``The Secretary shall establish in the Office of the
Secretary an Office of Tribal Relations.''.
(b) Conforming Amendments.--Section 296(b) of the
Department of Agriculture Reorganization Act of 1994 (7
U.S.C. 7014(b)) (as amended by section 12201(b)) is amended--
(1) in paragraph (8), by striking ``or'' at the end;
(2) in paragraph (9), by striking the period at the end and
inserting ``; or''; and
(3) by adding at the end the following:
``(10) the authority of the Secretary to establish in the
Office of the Secretary the Office of Tribal Relations in
accordance with section 309.''.
______
SA 2397. Mr. AKAKA submitted an amendment intended to be proposed by
him to the bill S. 3240, to reauthorize agricultural programs through
2017, and for other purposes; which was ordered to lie on the table; as
follows:
On page 1009, after line 11, add the following:
SEC. 12207. APPROVAL OF, AND PROVISIONS RELATING TO, TRIBAL
LEASES.
(a) Definitions.--Subsection (d) of the first section of
the Act of August 9, 1955 (25 U.S.C. 415(d)) (commonly known
as the ``Long-Term Leasing Act''), is amended--
(1) in paragraph (4), by striking ``the Navajo Nation'' and
inserting ``an applicable Indian tribe'';
(2) in paragraph (6), by striking ``the Navajo Nation'' and
inserting ``an Indian tribe'';
(3) in paragraph (7), by striking ``and'' after the
semicolon at the end;
(4) in paragraph (8)--
(A) by striking ``the Navajo Nation'';
(B) by striking ``with Navajo Nation law'' and inserting
``with applicable tribal law''; and
(C) by striking the period at the end and inserting ``;
and''; and
(5) by adding at the end the following:
``(9) the term `Indian tribe' has the meaning given the
term in section 102 of the Federally Recognized Indian Tribe
List Act of 1994 (25 U.S.C. 479a).''.
(b) Tribal Approval of Leases.--The first section of the
Act of August 9, 1955 (25 U.S.C. 415) (commonly known as the
``Long-Term Leasing Act''), is amended by adding at the end
the following:
``(h) Tribal Approval of Leases.--
``(1) In general.--Subject to paragraph (2) and at the
discretion of any Indian tribe, any
[[Page S4105]]
lease by the Indian tribe for the purposes authorized under
subsection (a), except a lease for the exploration,
development, or extraction of any mineral resources, shall
not require the approval of the Secretary if the lease is
executed under the tribal regulations approved by the
Secretary under this subsection and the term of the lease
does not exceed--
``(A) in the case of a business or agricultural lease, 25
years, except that any such lease may include an option to
renew for up to 2 additional terms, each of which may not
exceed 25 years; and
``(B) in the case of a lease for public, religious,
educational, recreational, or residential purposes, 75 years,
if such a term is provided for by the regulations issued by
the Indian tribe.
``(2) Allotted land.--Paragraph (1) shall not apply to any
lease of land (including an interest in land) held in trust
for an individual Indian.
``(3) Authority of secretary over tribal regulations.--
``(A) In general.--The Secretary shall have the authority
to approve or disapprove any tribal regulations issued in
accordance with paragraph (1).
``(B) Considerations for approval.--The Secretary shall
approve any tribal regulation issued in accordance with
paragraph (1), if the tribal regulations--
``(i) are consistent with any regulations issued by the
Secretary under subsection (a); and
``(ii) provide for an environmental review process that
includes--
``(I) the identification and evaluation of any significant
effects of the proposed action on the environment; and
``(II) a process for ensuring that--
``(aa) the public is informed of, and has a reasonable
opportunity to comment on, any significant environmental
impacts of the proposed action identified by the Indian
tribe; and
``(bb) the Indian tribe provides responses to relevant and
substantive public comments on those impacts before the
Indian tribe approves the lease.
``(4) Review process.--
``(A) In general.--Not later than 120 days after the date
on which the tribal regulations described in paragraph (1)
are submitted to the Secretary, the Secretary shall review
and approve or disapprove the regulations.
``(B) Written documentation.--If the Secretary disapproves
the tribal regulations described in paragraph (1), the
Secretary shall include written documentation with the
disapproval notification that describes the basis for the
disapproval.
``(C) Extension.--The deadline described in subparagraph
(A) may be extended by the Secretary, after consultation with
the Indian tribe.
``(5) Federal environmental review.--Notwithstanding
paragraphs (3) and (4), if an Indian tribe carries out a
project or activity funded by a Federal agency, the Indian
tribe shall have the authority to rely on the environmental
review process of the applicable Federal agency rather than
any tribal environmental review process under this
subsection.
``(6) Documentation.--If an Indian tribe executes a lease
pursuant to tribal regulations under paragraph (1), the
Indian tribe shall provide the Secretary with--
``(A) a copy of the lease, including any amendments or
renewals to the lease; and
``(B) in the case of tribal regulations or a lease that
allows for lease payments to be made directly to the Indian
tribe, documentation of the lease payments that is sufficient
to enable the Secretary to discharge the trust responsibility
of the United States under paragraph (7).
``(7) Trust responsibility.--
``(A) In general.--The United States shall not be liable
for losses sustained by any party to a lease executed
pursuant to tribal regulations under paragraph (1).
``(B) Authority of secretary.--Pursuant to the authority of
the Secretary to fulfill the trust obligation of the United
States to the applicable Indian tribe under Federal law
(including regulations), the Secretary may, upon reasonable
notice from the applicable Indian tribe and at the discretion
of the Secretary, enforce the provisions of, or cancel, any
lease executed by the Indian tribe under paragraph (1).
``(8) Compliance.--
``(A) In general.--An interested party, after exhausting of
any applicable tribal remedies, may submit a petition to the
Secretary, at such time and in such form as the Secretary
determines to be appropriate, to review the compliance of the
applicable Indian tribe with any tribal regulations approved
by the Secretary under this subsection.
``(B) Violations.--If, after carrying out a review under
subparagraph (A), the Secretary determines that the tribal
regulations were violated, the Secretary may take any action
the Secretary determines to be necessary to remedy the
violation, including rescinding the approval of the tribal
regulations and reassuming responsibility for the approval of
leases of tribal trust lands.
``(C) Documentation.--If the Secretary determines that a
violation of the tribal regulations has occurred and a remedy
is necessary, the Secretary shall--
``(i) make a written determination with respect to the
regulations that have been violated;
``(ii) provide the applicable Indian tribe with a written
notice of the alleged violation together with such written
determination; and
``(iii) prior to the exercise of any remedy, the rescission
of the approval of the regulation involved, or the
reassumption of lease approval responsibilities, provide the
applicable Indian tribe with--
``(I) a hearing that is on the record; and
``(II) a reasonable opportunity to cure the alleged
violation.
``(9) Savings clause.--Nothing in this subsection shall
affect subsection (e) or any tribal regulations issued under
that subsection.''.
(c) Land Titles and Records Office Report.--
(1) In general.--Not later than 180 days after the date on
which funds are first made available to carry out this Act,
the Bureau of Indian Affairs shall prepare and submit to the
Committees on Financial Services and Natural Resources of the
House of Representatives and the Committees on Banking,
Housing, and Urban Affairs and Indian Affairs of the Senate a
report regarding the history and experience of Indian tribes
that have chosen to assume responsibility for operating the
Land Titles and Records Office (referred to in this
subsection as the ``LTRO'') functions from the Bureau of
Indian Affairs.
(2) Consultation.--In conducting the review under paragraph
(1), the Bureau of Indian Affairs shall consult with the
Department of Housing and Urban Development Office of Native
American Programs and the Indian tribes that are managing
LTRO functions (referred to in this subsection as the
``managing Indian tribes'').
(3) Contents.--The review under paragraph (1) shall include
an analysis of the following factors:
(A) Whether and how tribal management of the LTRO functions
has expedited the processing and issuance of Indian land
title certifications as compared to the period during which
the Bureau of Indian Affairs managed the programs.
(B) Whether and how tribal management of the LTRO functions
has increased home ownership among the population of the
managing Indian tribe.
(C) What internal preparations and processes were required
of the managing Indian tribes prior to assuming management of
the LTRO functions.
(D) Whether tribal management of the LTRO functions
resulted in a transfer of financial resources and manpower
from the Bureau of Indian Affairs to the managing Indian
tribes and, if so, what transfers were undertaken.
(E) Whether, in appropriate circumstances and with the
approval of geographically proximate Indian tribes, the LTRO
functions may be performed by a single Indian tribe or a
tribal consortium in a cost effective manner.
SEC. 12208. MODIFICATION OF DEFINITION.
(a) Modification.--
(1) In general.--The first sentence of section 19 of the
Act of June 18, 1934 (commonly known as the ``Indian
Reorganization Act'') (25 U.S.C. 479), is amended--
(A) by striking ``The term'' and inserting ``Effective
beginning on June 18, 1934, the term''; and
(B) by striking ``any recognized Indian tribe now under
Federal jurisdiction'' and inserting ``any federally
recognized Indian tribe''.
(2) Effective date.--The amendments made by paragraph (1)
shall take effect as if included in the Act of June 18, 1934
(commonly known as the ``Indian Reorganization Act'') (25
U.S.C. 479), on the date of enactment of that Act.
(b) Ratification and Confirmation of Prior Actions.--Any
action taken by the Secretary of the Interior pursuant to the
Act of June 18, 1934 (commonly known as the ``Indian
Reorganization Act'') (25 U.S.C. 461 et seq.), for any Indian
tribe that was federally recognized on the date of that
action is ratified and confirmed, to the extent that the
action is challenged based on the question of whether the
Indian tribe was federally recognized or under Federal
jurisdiction on June 18, 1934, as if the action had, by prior
act of Congress, been specifically authorized and directed.
(c) Effect on Other Laws.--
(1) In general.--Nothing in this section or the amendments
made by this section affects--
(A) the application or effect of any Federal law other than
the Act of June 18, 1934 (25 U.S.C. 461 et seq.) (as amended
by subsection (a)); or
(B) any limitation on the authority of the Secretary of the
Interior under any Federal law or regulation other than the
Act of June 18, 1934 (25 U.S.C. 461 et seq.) (as so amended).
(2) References in other laws.--An express reference to the
Act of June 18, 1934 (25 U.S.C. 461 et seq.), contained in
any other Federal law shall be considered to be a reference
to that Act as amended by subsection (a).
(d) Study; Publication.--
(1) Study.--The Secretary of the Interior shall conduct,
and submit to Congress a report describing the results of, a
study that--
(A) assesses the effects of the decision of the Supreme
Court in Docket No. 07 526 (129 S. Ct. 1058) on Indian tribes
and tribal land; and
(B) includes a list of each Indian tribe and parcel of
tribal land affected by that decision.
[[Page S4106]]
(2) Publication.--On completion of the report under
paragraph (1) and by not later than 1 year after the date of
enactment of this Act, the Secretary of the Interior shall
publish the list described in paragraph (1)(B)--
(A) in the Federal Register; and
(B) on the public website of the Department of the
Interior.
______
SA 2398. Mr. AKAKA submitted an amendment intended to be proposed by
him to the bill S. 3240, to reauthorize agricultural programs through
2017, and for other purposes; which was ordered to lie on the table; as
follows:
On page 515, strike lines 17 through 20 and insert the
following:
488) is amended--
(1) in subsection (a), in the first sentence--
(A) by striking ``loans from'' and all that follows through
``1929)'' and inserting ``direct loans in a manner consistent
with direct loans authorized under section 302 of the
Consolidated Farm and Rural Development Act (7 U.S.C.
1922)''; and
(B) by inserting ``, a member of an Indian tribe recognized
by the Secretary of the Interior,'' before ``or tribal
corporation''; and
(2) in subsection (b)(1), by striking ``pursuant to section
205(c) of the Indian Land Consolidation Act (25 U.S.C.
2204(c))''.
______
SA 2399. Mr. LEAHY submitted an amendment intended to be proposed by
him to the bill S. 3240, to reauthorize agricultural programs through
2017, and for other purposes; which was ordered to lie on the table; as
follows:
On page 1009, after line 11, add the following:
SEC. 12207. NONIMMIGRANT DAIRY WORKERS, SHEEPHERDERS, AND
GOAT HERDERS.
(a) Short Title.--This section may be cited as the ``H 2A
Improvement Act''.
(b) Nonimmigrant Status for Dairy Workers, Sheepherders,
and Goat Herders.--Section 101(a)(15)(H)(ii)(a) of the
Immigration and Nationality Act (8 U.S.C.
1101(a)(15)(H)(ii)(a)) is amended by inserting ``who is
coming temporarily to the United States to perform
agricultural labor or services as a dairy worker,
sheepherder, or goat herder, or'' after ``abandoning''.
(c) Special Rules for Aliens Employed as Dairy Workers,
Sheepherders, or Goat Herders.--Section 218 of the
Immigration and Nationality Act (8 U.S.C. 1188) is amended--
(1) by redesignating subsections (h) and (i) as subsections
(i) and (j), respectively; and
(2) by inserting after subsection (g) the following:
``(h) Special Rules for Aliens Employed as Dairy Workers,
Sheepherders, or Goat Herders.--
``(1) In general.--Notwithstanding any other provision of
this Act, an alien admitted as a nonimmigrant under section
101(a)(15)(H)(ii)(a) for employment as a dairy worker,
sheepherder, or goat herder--
``(A) may be admitted for an initial period of 3 years; and
``(B) subject to paragraph (3)(E), may have such initial
period of admission extended for an additional period of up
to 3 years.
``(2) Exemption from temporary or seasonal requirement.--
Not withstanding section 101(a)(15)(H)(ii)(a), an employer
filing a petition to employ H 2A workers in positions as
dairy workers, sheepherders, or goat herders shall not be
required to show that such positions are of a seasonal or
temporary nature.
``(3) Adjustment to lawful permanent resident status.--
``(A) Eligible alien.--In this paragraph, the term
`eligible alien' means an alien who--
``(i) has H 2A worker status based on employment as a dairy
worker, sheepherder, or goat herder;
``(ii) has maintained such status in the United States for
a not fewer than 33 of the preceding 36 months; and
``(iii) is seeking to receive an immigrant visa under
section 203(b)(3)(A)(iii).
``(B) Classification petition.--A petition under section
204 for classification of an eligible alien under section
203(b)(3)(A)(iii) may be filed by--
``(i) the alien's employer on behalf of the eligible alien;
or
``(ii) the eligible alien.
``(C) No labor certification required.--Notwithstanding
section 203(b)(3)(C), no determination under section
212(a)(5)(A) is required with respect to an immigrant visa
under section 203(b)(3)(A)(iii) for an eligible alien.
``(D) Effect of petition.--The filing of a petition
described in subparagraph (B) or an application for
adjustment of status based on a petition described in
subparagraph (B) shall not be a basis fo denying--
``(i) another petition to employ H 2A workers;
``(ii) an extension of nonimmigrant status for a H 2A
worker;
``(iii) admission of an alien as an H 2A worker;
``(iv) a request for a visa for an H 2A worker;
``(v) a request from an alien to modify the alien's
immigration status to or from status as an H 2A worker; or
``(vi) a request made for an H 2A worker to extend such
worker's stay in the United States.
``(E) Extension of stay.--The Secretary of Homeland
Security shall extend the stay of an eligible alien having a
pending or approved petition described in subparagraph (B) in
1-year increments until a final determination is made on the
alien's eligibility for adjustment of status to that of an
alien lawfully admitted for permanent residence.
``(F) Construction.--Nothing in this paragraph may be
construed to prevent an eligible alien from seeking
adjustment of status in accordance with any other provision
of law.''.
______
SA 2400. Mr. LEAHY submitted an amendment intended to be proposed to
amendment SA 2343 submitted by Mr. Chambliss (for himself and Mr.
Isakson) and intended to be proposed to the bill S. 3240, to
reauthorize agricultural programs through 2017, and for other purposes;
which was ordered to lie on the table; as follows:
In lieu of the matter proposed to be inserted, add the
following:
SEC. 12207. NONIMMIGRANT DAIRY WORKERS, SHEEPHERDERS, AND
GOAT HERDERS.
(a) Short Title.--This section may be cited as the ``H 2A
Improvement Act''.
(b) Nonimmigrant Status for Dairy Workers, Sheepherders,
and Goat Herders.--Section 101(a)(15)(H)(ii)(a) of the
Immigration and Nationality Act (8 U.S.C.
1101(a)(15)(H)(ii)(a)) is amended by inserting ``who is
coming temporarily to the United States to perform
agricultural labor or services as a dairy worker,
sheepherder, or goat herder, or'' after ``abandoning''.
(c) Special Rules for Aliens Employed as Dairy Workers,
Sheepherders, or Goat Herders.--Section 218 of the
Immigration and Nationality Act (8 U.S.C. 1188) is amended--
(1) by redesignating subsections (h) and (i) as subsections
(i) and (j), respectively; and
(2) by inserting after subsection (g) the following:
``(h) Special Rules for Aliens Employed as Dairy Workers,
Sheepherders, or Goat Herders.--
``(1) In general.--Notwithstanding any other provision of
this Act, an alien admitted as a nonimmigrant under section
101(a)(15)(H)(ii)(a) for employment as a dairy worker,
sheepherder, or goat herder--
``(A) may be admitted for an initial period of 3 years; and
``(B) subject to paragraph (3)(E), may have such initial
period of admission extended for an additional period of up
to 3 years.
``(2) Exemption from temporary or seasonal requirement.--
Not withstanding section 101(a)(15)(H)(ii)(a), an employer
filing a petition to employ H 2A workers in positions as
dairy workers, sheepherders, or goat herders shall not be
required to show that such positions are of a seasonal or
temporary nature.
``(3) Adjustment to lawful permanent resident status.--
``(A) Eligible alien.--In this paragraph, the term
`eligible alien' means an alien who--
``(i) has H 2A worker status based on employment as a dairy
worker, sheepherder, or goat herder;
``(ii) has maintained such status in the United States for
a not fewer than 33 of the preceding 36 months; and
``(iii) is seeking to receive an immigrant visa under
section 203(b)(3)(A)(iii).
``(B) Classification petition.--A petition under section
204 for classification of an eligible alien under section
203(b)(3)(A)(iii) may be filed by--
``(i) the alien's employer on behalf of the eligible alien;
or
``(ii) the eligible alien.
``(C) No labor certification required.--Notwithstanding
section 203(b)(3)(C), no determination under section
212(a)(5)(A) is required with respect to an immigrant visa
under section 203(b)(3)(A)(iii) for an eligible alien.
``(D) Effect of petition.--The filing of a petition
described in subparagraph (B) or an application for
adjustment of status based on a petition described in
subparagraph (B) shall not be a basis fo denying--
``(i) another petition to employ H 2A workers;
``(ii) an extension of nonimmigrant status for a H 2A
worker;
``(iii) admission of an alien as an H 2A worker;
``(iv) a request for a visa for an H 2A worker;
``(v) a request from an alien to modify the alien's
immigration status to or from status as an H 2A worker; or
``(vi) a request made for an H 2A worker to extend such
worker's stay in the United States.
``(E) Extension of stay.--The Secretary of Homeland
Security shall extend the stay of an eligible alien having a
pending or approved petition described in subparagraph (B) in
1-year increments until a final determination is made on the
alien's eligibility for adjustment of status to that of an
alien lawfully admitted for permanent residence.
``(F) Construction.--Nothing in this paragraph may be
construed to prevent an eligible alien from seeking
adjustment of status in accordance with any other provision
of law.''.
______
SA 2401. Mr. UDALL of Colorado submitted an amendment intended to be
proposed by him to the bill S. 3240, to
[[Page S4107]]
reauthorize agricultural programs through 2017, and for other purposes;
which was ordered to lie on the table; as follows:
On page 1009, after line 11, add the following:
SEC. 12207. FARM AND RANCH LAND LINK COORDINATORS.
Section 226B(e)(2) of the Department of Agriculture
Reorganization Act of 1994 (7 U.S.C. 6934(e)(2)) is amended--
(1) by redesignating subparagraph (D) as subparagraph (E);
and
(2) by inserting after subparagraph (C) the following:
``(D) Farm and ranch land link coordinator.--
``(i) In general.--The Secretary shall designate 1 farm and
ranch land link coordinator for each State from among the
State office employees of any of the following agencies in
that State:
``(I) The Farm Service Agency.
``(II) The Natural Resources Conservation Service.
``(III) The Risk Management Agency.
``(IV) The Rural Business-Cooperative Service.
``(V) The Rural Utilities Service.
``(ii) Training.--The Small Farms and Beginning Farmers and
Ranchers Group shall coordinate the development of a training
plan so that each State coordinator receives sufficient
training to have a general working knowledge of the programs
and services available from each agency of the Department to
assist small and beginning farmers and ranchers in the
transition of land from retiring farmers and ranchers.
``(iii) Duties.--The coordinator shall--
``(I) coordinate technical assistance at the State level to
assist small and beginning farmers and ranchers, and retiring
farmers and ranchers, interested in, or in process of, the
transition of land, with the goal of keeping land in
agricultural production;
``(II) develop, in consultation with appropriate Federal,
State, and local agencies and nongovernmental organizations,
and submit a State plan for approval by the Small Farms and
Beginning Farmers and Ranchers Group or as directed by the
Secretary to provide coordination to ensure adequate services
to small and beginning farmers and ranchers at all county and
area offices throughout the State that support linking small
and beginning farmers and ranchers with retiring farmers and
ranchers, including, at a minimum, facilitating the
transition of land;
``(III) oversee implementation of the approved State plan;
and
``(IV) work with outreach coordinators in the State offices
of the Farm Service Agency, the Natural Resources
Conservation Service, the Risk Management Agency, the Rural
Business-Cooperative Service, the Rural Utilities Service,
the National Institute of Food and Agriculture, and
appropriate nongovernmental organizations to ensure
appropriate information about technical assistance is
available at outreach events and activities.''.
______
SA 2402. Mr. MORAN submitted an amendment intended to be proposed by
him to the bill S. 3240, to reauthorize agricultural programs through
2017, and for other purposes; which was ordered to lie on the table; as
follows:
On page 831, strike lines 20 and 21 and insert the
following:
38, United States Code).'';
(2) by redesignating subsection (h) as subsection (i);
(3) by inserting after subsection (g) the following:
``(h) State Grants.--
``(1) Definition of eligible entity.--In this subsection,
the term `eligible entity' means--
``(A) an agency of a State or political subdivision of a
State;
``(B) a national, State, or regional organization of
agricultural producers; and
``(C) any other entity determined appropriate by the
Secretary.
``(2) Grants.--The Secretary shall use not less than 4
percent of funds made available to carry out this section for
each fiscal year under subsection (i) to make grants to
States, on a competitive basis, which States shall use the
grants to make grants to eligible entities to establish and
improve farm safety programs at the local level.''; and
(4) in subsection (i) (as redesignated by paragraph (2))--
______
SA 2403. Mr. MORAN submitted an amendment intended to be proposed by
him to the bill S. 3240, to reauthorize agricultural programs through
2017, and for other purposes; which was ordered to lie on the table; as
follows:
On page 291, lines 20 and 21, strike ``15 percent'' and
insert ``20''.
____________________