[104th Congress Public Law 127]
[From the U.S. Government Printing Office]


<DOC>
[DOCID: f:publ127.104]


[[Page 887]]

         FEDERAL AGRICULTURE IMPROVEMENT AND REFORM ACT OF 1996

[[Page 110 STAT. 888]]

Public Law 104-127
104th Congress

                                 An Act


 
 To modify the operation of certain agricultural programs. <<NOTE: Apr. 
                        4, 1996 -  [H.R. 2854]>> 

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled, <<NOTE: Federal 
Agriculture Improvement and Reform Act of 1996.>> 

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) <<NOTE: 7 USC 7201 note.>> Short Title.--This Act may be cited 
as the ``Federal Agriculture Improvement and Reform Act of 1996''.

    (b) Table of Contents.--The table of contents of this Act is as 
follows:

Sec. 1. Short title; table of contents.

               TITLE I--AGRICULTURAL MARKET TRANSITION ACT

            Subtitle A--Short Title, Purpose, and Definitions

Sec. 101. Short title and purpose.
Sec. 102. Definitions.

              Subtitle B--Production Flexibility Contracts

Sec. 111. Authorization for use of production flexibility contracts.
Sec. 112. Elements of contracts.
Sec. 113. Amounts available for contract payments.
Sec. 114. Determination of contract payments under contracts.
Sec. 115. Payment limitations.
Sec. 116. Violations of contract.
Sec. 117. Transfer or change of interest in lands subject to contract.
Sec. 118. Planting flexibility.

 Subtitle C--Nonrecourse Marketing Assistance Loans and Loan Deficiency 
                                Payments

Sec. 131. Availability of nonrecourse marketing assistance loans.
Sec. 132. Loan rates for marketing assistance loans.
Sec. 133. Term of loans.
Sec. 134. Repayment of loans.
Sec. 135. Loan deficiency payments.
Sec. 136. Special marketing loan provisions for upland cotton.
Sec. 137. Availability of recourse loans for high moisture feed grains 
           and seed cotton.

                      Subtitle D--Other Commodities

                            Chapter 1--Dairy

Sec. 141. Milk price support program.
Sec. 142. Recourse loan program for commercial processors of dairy 
           products.
Sec. 143. Consolidation and reform of Federal milk marketing orders.
Sec. 144. Effect on fluid milk standards in State of California.
Sec. 145. Milk manufacturing marketing adjustment.
Sec. 146. Promotion.
Sec. 147. Northeast Interstate Dairy Compact.
Sec. 148. Dairy export incentive program.
Sec. 149. Authority to assist in establishment and maintenance of one or 
           more export trading companies.
Sec. 150. Standby authority to indicate entity best suited to provide 
           international market development and export services.

[[Page 110 STAT. 889]]

Sec. 151. Study and report regarding potential impact of Uruguay Round 
           on prices, income, and Government purchases.
Sec. 152. Promotion of United States dairy products in international 
           markets through dairy promotion program.

                      Chapter 2--Peanuts and Sugar

Sec. 155. Peanut program.
Sec. 156. Sugar program.

                       Subtitle E--Administration

Sec. 161. Administration.
Sec. 162. Adjustments of loans.
Sec. 163. Commodity Credit Corporation interest rate.
Sec. 164. Personal liability of producers for deficiencies.
Sec. 165. Commodity Credit Corporation sales price restrictions.

              Subtitle F--Permanent Price Support Authority

Sec. 171. Suspension and repeal of permanent price support authority.
Sec. 172. Effect of amendments.

      Subtitle G--Commission on 21st Century Production Agriculture

Sec. 181. Establishment.
Sec. 182. Composition.
Sec. 183. Comprehensive review of past and future of production 
           agriculture.
Sec. 184. Reports.
Sec. 185. Powers.
Sec. 186. Commission procedures.
Sec. 187. Personnel matters.
Sec. 188. Termination of Commission.

             Subtitle H--Miscellaneous Commodity Provisions

Sec. 191. Options pilot program.
Sec. 192. Risk management education.
Sec. 193. Crop insurance.
Sec. 194. Establishment of Office of Risk Management.
Sec. 195. Revenue insurance.
Sec. 196. Administration and operation of noninsured crop assistance 
           program.

                      TITLE II--AGRICULTURAL TRADE

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

Sec. 201. Food aid to developing countries.
Sec. 202. Trade and development assistance.
Sec. 203. Agreements regarding eligible countries and private entities.
Sec. 204. Terms and conditions of sales.
Sec. 205. Use of local currency payment.
Sec. 206. Value-added foods.
Sec. 207. Eligible organizations.
Sec. 208. Generation and use of foreign currencies.
Sec. 209. General levels of assistance under Public Law 480.
Sec. 210. Food Aid Consultative Group.
Sec. 211. Support of nongovernmental organizations.
Sec. 212. Commodity determinations.
Sec. 213. General provisions.
Sec. 214. Agreements.
Sec. 215. Use of Commodity Credit Corporation.
Sec. 216. Administrative provisions.
Sec. 217. Expiration date.
Sec. 218. Regulations.
Sec. 219. Independent evaluation of programs.
Sec. 220. Authorization of appropriations. 
Sec. 221. Coordination of foreign assistance programs.
Sec. 222. Micronutrient fortification pilot program.
Sec. 223. Use of certain local currency.
Sec. 224. Farmer-to-farmer program.
Sec. 225. Food security commodity reserve.
Sec. 226. Protein byproducts derived from alcohol fuel production.
Sec. 227. Food for progress program.
Sec. 228. Use of foreign currency proceeds from export sales financing.

[[Page 110 STAT. 890]]

Sec. 229. Stimulation of foreign production.

        Subtitle B--Amendments to Agricultural Trade Act of 1978

Sec. 241. Agricultural export promotion strategy.
Sec. 242. Implementation of commitments under Uruguay Round Agreements.
Sec. 243. Export credits.
Sec. 244. Market access program.
Sec. 245. Export enhancement program.
Sec. 246. Arrival certification.
Sec. 247. Compliance.
Sec. 248. Regulations.
Sec. 249. Trade compensation and assistance programs.
Sec. 250. Foreign Agricultural Service.
Sec. 251. Reports.
Sec. 252. Foreign market development cooperator program.

         Subtitle C--Miscellaneous Agricultural Trade Provisions

Sec. 261. Edward R. Madigan United States Agricultural Export Excellence 
           Award.
Sec. 262. Reporting requirements relating to tobacco.
Sec. 263. Triggered export enhancement.
Sec. 264. Disposition of commodities to prevent waste.
Sec. 265. Debt-for-health-and-protection swap.
Sec. 266. Policy on expansion of international markets.
Sec. 267. Policy on maintenance and development of export markets.
Sec. 268. Policy on trade liberalization.
Sec. 269. Agricultural trade negotiations.
Sec. 270. Policy on unfair trade practices.
Sec. 271. Agricultural aid and trade missions.
Sec. 272. Annual reports by agricultural attaches.
Sec. 273. World livestock market price information.
Sec. 274. Orderly liquidation of stocks.
Sec. 275. Sales of extra long staple cotton.
Sec. 276. Regulations.
Sec. 277. Emerging markets.
Sec. 278. Reimbursement for overhead expenses.
Sec. 279. Labeling of domestic and imported lamb and mutton.
Sec. 280. Import assistance for CBI beneficiary countries and the 
           Philippines.
Sec. 281. Studies, reports, and other provisions.
Sec. 282. Sense of Congress concerning multilateral disciplines on 
           credit guarantees.
Sec. 283. International Cotton Advisory Committee.

                         TITLE III--CONSERVATION

                         Subtitle A--Definitions

Sec. 301. Definitions applicable to highly erodible cropland 
           conservation.

              Subtitle B--Highly Erodible Land Conservation

Sec. 311. Program ineligibility.
Sec. 312. Conservation reserve lands.
Sec. 313. Good faith exemption.
Sec. 314. Expedited procedures for granting variances from conservation 
           plans.
Sec. 315. Development and implementation of conservation plans and 
           conservation systems.
Sec. 316. Investigation of possible compliance deficiencies.
Sec. 317. Wind erosion estimation pilot project.

                    Subtitle C--Wetland Conservation

Sec. 321. Program ineligibility.
Sec. 322. Delineation of wetlands; exemptions to program ineligibility.
Sec. 323. Consultation and cooperation requirements.
Sec. 324. Application of program ineligibility to affiliated persons.
Sec. 325. Clarification of definition of agricultural lands in 
           memorandum of agreement.
Sec. 326. Effective date.

     Subtitle D--Environmental Conservation Acreage Reserve Program

Sec. 331. Environmental conservation acreage reserve program.
Sec. 332. Conservation reserve program.
Sec. 333. Wetlands reserve program.

[[Page 110 STAT. 891]]

Sec. 334. Environmental quality incentives program.
Sec. 335. Conservation farm option.
Sec. 336. Repeal of superseded authorities.

           Subtitle E--Conservation Funding and Administration

Sec. 341. Conservation funding and administration.
Sec. 342. State technical committees.
Sec. 343. Public notice and comment for revisions to certain State 
           technical guides.

     Subtitle F--National Natural Resources Conservation Foundation

Sec. 351. Short title.
Sec. 352. Definitions.
Sec. 353. National Natural Resources Conservation Foundation.
Sec. 354. Composition and operation.
Sec. 355. Officers and employees.
Sec. 356. Corporate powers and obligations of the Foundation.
Sec. 357. Administrative services and support.
Sec. 358. Audits and petition of Attorney General for equitable relief.
Sec. 359. Release from liability.
Sec. 360. Authorization of appropriations.

                          Subtitle G--Forestry

Sec. 371. Office of International Forestry.
Sec. 372. Cooperative work for protection, management, and improvement 
           of National Forest System.
Sec. 373. Forestry incentives program.
Sec. 374. Optional State grants for forest legacy program.

            Subtitle H--Miscellaneous Conservation Provisions

Sec. 381. Conservation activities of Commodity Credit Corporation.
Sec. 382. Floodplain easements.
Sec. 383. Resource conservation and development program.
Sec. 384. Repeal of report requirement.
Sec. 385. Flood risk reduction.
Sec. 386. Conservation of private grazing land.
Sec. 387. Wildlife habitat incentives program.
Sec. 388. Farmland protection program.
Sec. 389. Interim moratorium on bypass flows.
Sec. 390. Everglades ecosystem restoration.
Sec. 391. Agricultural air quality research oversight.

                     TITLE IV--NUTRITION ASSISTANCE

Sec. 401. Food stamp program.
Sec. 402. Commodity distribution program; commodity supplemental food 
           program.
Sec. 403. Emergency food assistance program.
Sec. 404. Soup kitchen and food bank program.
Sec. 405. National commodity processing.

                     TITLE V--AGRICULTURAL PROMOTION

             Subtitle A--Commodity Promotion and Evaluation

Sec. 501. Commodity promotion and evaluation.

Subtitle B--Issuance of Orders for Promotion, Research, and Information 
              Activities Regarding Agricultural Commodities

Sec. 511. Short title.
Sec. 512. Findings and purpose.
Sec. 513. Definitions.
Sec. 514. Issuance of orders.
Sec. 515. Required terms in orders.
Sec. 516. Permissive terms in orders.
Sec. 517. Assessments.
Sec. 518. Referenda.
Sec. 519. Petition and review of orders.
Sec. 520. Enforcement.
Sec. 521. Investigations and power to subpoena.
Sec. 522. Suspension or termination.
Sec. 523. Amendments to orders.
Sec. 524. Effect on other laws.
Sec. 525. Regulations.

[[Page 110 STAT. 892]]

Sec. 526. Authorization of appropriations.

                     Subtitle C--Canola and Rapeseed

Sec. 531. Short title.
Sec. 532. Findings and declaration of policy.
Sec. 533. Definitions.
Sec. 534. Issuance and amendment of orders.
Sec. 535. Required terms in orders.
Sec. 536. Assessments.
Sec. 537. Referenda.
Sec. 538. Petition and review.
Sec. 539. Enforcement.
Sec. 540. Investigations and power to subpoena.
Sec. 541. Suspension or termination.
Sec. 542. Regulations.
Sec. 543. Authorization of appropriations.

                          Subtitle D--Kiwifruit

Sec. 551. Short title.
Sec. 552. Findings and purposes.
Sec. 553. Definitions.
Sec. 554. Issuance of orders.
Sec. 555. National Kiwifruit Board.
Sec. 556. Required terms in order.
Sec. 557. Permissive terms in order.
Sec. 558. Petition and review.
Sec. 559. Enforcement.
Sec. 560. Investigations and power to subpoena.
Sec. 561. Referenda.
Sec. 562. Suspension or termination.
Sec. 563. Regulations.
Sec. 564. Authorization of appropriations.

                           Subtitle E--Popcorn

Sec. 571. Short title.
Sec. 572. Findings and declaration of policy.
Sec. 573. Definitions.
Sec. 574. Issuance of orders.
Sec. 575. Required terms in orders.
Sec. 576. Referenda.
Sec. 577. Petition and review.
Sec. 578. Enforcement.
Sec. 579. Investigations and power to subpoena.
Sec. 580. Relation to other programs.
Sec. 581. Regulations.
Sec. 582. Authorization of appropriations.

                        Subtitle F--Miscellaneous

Sec. 591. Maintenance of records for honey promotion program.

                            TITLE VI--CREDIT

                    Subtitle A--Farm Ownership Loans

Sec. 601. Limitation on direct farm ownership loans.
Sec. 602. Purposes of loans.
Sec. 603. Soil and water conservation and protection.
Sec. 604. Interest rate requirements.
Sec. 605. Insurance of loans.
Sec. 606. Loans guaranteed.

                       Subtitle B--Operating Loans

Sec. 611. Limitation on direct operating loans.
Sec. 612. Purposes of operating loans.
Sec. 613. Participation in loans.
Sec. 614. Line-of-credit loans.
Sec. 615. Insurance of operating loans.
Sec. 616. Special assistance for beginning farmers and ranchers.
Sec. 617. Limitation on period for which borrowers are eligible for 
           guaranteed assistance.

                       Subtitle C--Emergency Loans

Sec. 621. Hazard insurance requirement.

[[Page 110 STAT. 893]]

Sec. 622. Narrowing of authority to waive application of the credit 
           elsewhere test.
Sec. 623. Linking of emergency loans for crop or livestock changes to 
           natural disasters.
Sec. 624. Maximum emergency loan indebtedness.
Sec. 625. Establishment of date for emergency loan asset valuation.
Sec. 626. Insurance of emergency loans.

                  Subtitle D--Administrative Provisions

Sec. 631. Temporary authority to enter into contracts.
Sec. 632. Use of collection agencies.
Sec. 633. Notice of loan service programs.
Sec. 634. Clarification of written statement required of borrowers.
Sec. 635. Annual review of the credit history, business operation, and 
           continued eligibility of a borrower.
Sec. 636. Extension of veterans preference.
Sec. 637. Verification of the credit elsewhere test.
Sec. 638. Sale of property.
Sec. 639. Easements on inventoried property.
Sec. 640. Definitions.
Sec. 641. Authorization for loans.
Sec. 642. Contracts on loan security properties.
Sec. 643. List of certified lenders and inventory property demonstration 
           project.
Sec. 644. Homestead property.
Sec. 645. Restructuring.
Sec. 646. Transfer of inventory land for conservation purposes.
Sec. 647. Implementation of target participation rates.
Sec. 648. Delinquent borrowers.
Sec. 649. Short form certification of farm program borrower compliance.
Sec. 650. Credit study.

                     Subtitle E--General Provisions

Sec. 661. Conforming amendments.
Sec. 662. Electronic filing of effective financing statements under the 
           clear title provisions of the Food Security Act of 1985.
Sec. 663. Effective date.

                      TITLE VII--RURAL DEVELOPMENT

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

                      Chapter 1--General Provisions

Sec. 701. Rural investment partnerships.
Sec. 702. Water and waste facility financing.
Sec. 703. Rural wastewater circuit rider program.
Sec. 704. Telemedicine and distance learning services in rural areas.
Sec. 705. Limitation on authorization of appropriations for rural 
           technology grants.
Sec. 706. Demonstration projects.
Sec. 707. Monitoring the economic progress of rural America.
Sec. 708. Analysis by Office of Technology Assessment.
Sec. 709. Rural health infrastructure improvement.
Sec. 710. Census of agriculture.
Sec. 711. Study of the transportation of fertilizer and agricultural 
           chemicals to farmers.

   Chapter 2--Alternative Agricultural Research and Commercialization

Sec. 721. Definitions.
Sec. 722. Alternative Agricultural Research and Commercialization 
           Corporation.
Sec. 723. Board of directors, employees, and facilities.
Sec. 724. Research and development grants, contracts, and agreements.
Sec. 725. Commercialization assistance.
Sec. 726. General rules regarding the provision of assistance.
Sec. 727. Regional centers.
Sec. 728. Alternative Agricultural Research and Commercialization 
           Revolving Fund.
Sec. 729. Procurement preferences for products receiving Corporation 
           assistance.
Sec. 730. Business plan and feasibility study and report.

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

                      Chapter 1--General Provisions

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

[[Page 110 STAT. 894]]

Sec. 742. Emergency community water assistance grant program for small 
           communities.
Sec. 743. Emergency community water assistance grant program for 
           smallest communities.
Sec. 744. Agricultural Credit Insurance Fund.
Sec. 745. Rural Development Insurance Fund.
Sec. 746. Insured watershed and resource conservation and development 
           loans.
Sec. 747. Rural industrialization assistance.
Sec. 748. Administration.
Sec. 749. Authorization of appropriations.
Sec. 750. Testimony before congressional committees.
Sec. 751. Prohibition on use of loans for certain purposes.
Sec. 752. Rural development certified lenders program.
Sec. 753. System for delivery of certain rural development programs.
Sec. 754. State rural economic development review panel.
Sec. 755. Limited transfer authority of loan amounts.
Sec. 756. Allocation and transfer of loan guarantee authority.
Sec. 757. Water systems for rural and Native villages in Alaska.
Sec. 758. Application requirements relating to water and waste disposal 
           loan and grant programs.
Sec. 759. National Sheep Industry Improvement Center.
Sec. 759A. Cooperative agreements.
Sec. 759B. Eligibility for grants to broadcasting systems.

             Chapter 2--Rural Community Advancement Program

Sec. 761. Rural community advancement program.
Sec. 762. Simplified, uniform application for assistance from all 
           Federal rural development programs.
Sec. 763. Community facilities grant program.

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

Sec. 771. Purposes; investigations and reports.
Sec. 772. Authorization of appropriations.
Sec. 773. Loans for electrical plants and transmission lines.
Sec. 774. Loans for electrical and plumbing equipment.
Sec. 775. Testimony on budget requests.
Sec. 776. Transfer of functions of administration created by Executive 
           order.
Sec. 777. Annual report.
Sec. 778. Prohibition on restricting water and waste facility services 
           to electric customers.
Sec. 779. Telephone loan terms and conditions.
Sec. 780. Privatization program.
Sec. 781. Rural Business Incubator Fund.

         Subtitle D--Miscellaneous Rural Development Provisions

Sec. 791. Interest rate formula.
Sec. 792. Grants for financially stressed farmers, dislocated farmers, 
           and rural families.
Sec. 793. Fund for Rural America.
Sec. 794. Under Secretary of Agriculture for Rural Economic and 
           Community Development renamed the Under Secretary of 
           Agriculture for Rural Development.

             TITLE VIII--RESEARCH, EXTENSION, AND EDUCATION

   Subtitle A--Modification and Extension of Activities Under 1977 Act

Sec. 801. Purposes of agricultural research, extension, and education.
Sec. 802. National Agricultural Research, Extension, Education, and 
           Economics Advisory Board.
Sec. 803. Federal Advisory Committee Act exemption for Federal-State 
           cooperative programs.
Sec. 804. Coordination and planning of agricultural research, extension, 
           and education.
Sec. 805. Grants and fellowships for food and agricultural sciences 
           education.
Sec. 806. Grants for research on the production and marketing of 
           alcohols and industrial hydrocarbons from agricultural 
           commodities and forest products.
Sec. 807. Policy research centers.
Sec. 808. Human nutrition intervention and health promotion research 
           program.
Sec. 809. Food and nutrition education program.
Sec. 810. Purposes and findings relating to animal health and disease 
           research.

[[Page 110 STAT. 895]]

Sec. 811. Animal health and disease continuing research.
Sec. 812. Animal health and disease national or regional research.
Sec. 813. Grant program to upgrade agricultural and food sciences 
           facilities at 1890 land-grant colleges.
Sec. 814. National research and training centennial centers.
Sec. 815. Programs for Hispanic-serving institutions.
Sec. 816. International agricultural research and extension.
Sec. 817. Authorization of appropriations for agricultural research 
           programs.
Sec. 818. Authorization of appropriations for extension education.
Sec. 819. Supplemental and alternative crops research.
Sec. 820. Aquaculture assistance programs.
Sec. 821. Authorization of appropriations for rangeland research.

   Subtitle B--Modification and Extension of Activities Under 1990 Act

Sec. 831. Water quality research, education, and coordination.
Sec. 832. National genetics resources program.
Sec. 833. National agricultural weather information system.
Sec. 834. Livestock product safety and inspection program.
Sec. 835. Plant genome mapping program.
Sec. 836. Certain specialized research programs.
Sec. 837. Agricultural telecommunications program.
Sec. 838. National centers for agricultural product quality research.
Sec. 839. Red meat safety research center.
Sec. 840. Indian reservation extension agent program.
Sec. 841. Assistive technology program for farmers with disabilities.
Sec. 842. National rural information center clearinghouse.
Sec. 843. Global climate change.

        Subtitle C--Repeal of Certain Activities and Authorities

Sec. 851. Subcommittee on Food, Agricultural, and Forestry Research.
Sec. 852. Joint Council on Food and Agricultural Sciences.
Sec. 853. Agricultural Science and Technology Review Board.
Sec. 854. Animal Health Science Research Advisory Board.
Sec. 855. Resident instruction program at 1890 land-grant colleges.
Sec. 856. Grants to States for international trade development centers.
Sec. 857. Rangeland research.
Sec. 858. Composting research and extension program.
Sec. 859. Education program regarding handling of agricultural chemicals 
           and agricultural chemical containers.
Sec. 860. Program administration regarding sustainable agriculture 
           research and education.
Sec. 861. Research regarding production, preparation, processing, 
           handling, and storage of agricultural products.
Sec. 862. Plant and animal pest and disease control program.
Sec. 863. Certain specialized research programs.
Sec. 864. Commission on agricultural research facilities.
Sec. 865. Special grant to study constraints on agricultural trade.
Sec. 866. Pilot project to coordinate food and nutrition education 
           programs.
Sec. 867. Demonstration areas for rural economic development.
Sec. 868. Technical advisory committee regarding global climate change.
Sec. 869. Committee of nine under Hatch Act of 1887.
Sec. 870. Cotton crop reports.
Sec. 871. Rural economic and business development and additional 
           research grants under title V of Rural Development Act of 
           1972.
Sec. 872. Human nutrition research.
Sec. 873. Grants to upgrade 1890 land-grant college extension 
           facilities.
Sec. 874. Indian subsistence farming demonstration grant program.

              Subtitle D--Miscellaneous Research Provisions

Sec. 881. Critical agricultural materials research.
Sec. 882. Memorandum of agreement regarding 1994 Institutions.
Sec. 883. Smith-Lever Act funding for 1890 land-grant colleges, 
           including Tuskegee University.
Sec. 884. Agricultural research facilities.
Sec. 885. National competitive research initiative.
Sec. 886. Rural development research and education.
Sec. 887. Dairy goat research program.
Sec. 888. Competitive grants for research to eradicate and control brown 
           citrus aphid and citrus tristeza virus.
Sec. 889. Stuttgart National Aquaculture Research Center.
Sec. 890. Expansion of authorities related to National Arboretum.

[[Page 110 STAT. 896]]

Sec. 891. Transfer of aquacultural research center.
Sec. 892. Use of remote sensing data and other data to anticipate 
           potential food, feed, and fiber shortages or excesses and to 
           provide timely information to assist farmers with planting 
           decisions.
Sec. 893. Sense of Senate regarding methyl bromide alternative research 
           and extension activities.

          Subtitle E--Research Authority After Fiscal Year 1997

Sec. 897. Authorization of appropriations.
Sec. 898. Activities subject to availability of appropriations.

                         TITLE IX--MISCELLANEOUS

      Subtitle A--Commercial Transportation of Equine for Slaughter

Sec. 901. Findings.
Sec. 902. Definitions.
Sec. 903. Regulation of commercial transportation of equine for 
           slaughter.
Sec. 904. Limitation of authority to equine for slaughter.
Sec. 905. Effective date.

                     Subtitle B--General Provisions

Sec. 911. Interstate quarantine.
Sec. 912. Cotton classification services.
Sec. 913. Plant variety protection for certain tuber propagated plant 
           varieties.
Sec. 914. Swine health protection.
Sec. 915. Designation of Mount Pleasant National Scenic Area.
Sec. 916. Pseudorabies eradication program.
Sec. 917. Collection and use of agricultural quarantine and inspection 
           fees.
Sec. 918. Meat and poultry inspection.
Sec. 919. Reimbursable agreements.
Sec. 920. Overseas tort claims.
Sec. 921. Operation of Graduate School of Department of Agriculture as 
           nonappropriated fund instrumentality.
Sec. 922. Student internship programs.
Sec. 923. Conveyance of excess Federal personal property.
Sec. 924. Conveyance of land to White Oak Cemetery.
Sec. 925. Sale of land by the University of Arkansas.
Sec. 926. Designation of Dale Bumpers Small Farms Research Center.
Sec. 927. Department of Agriculture Washington Area Strategic Space 
           Plan.
Sec. 928. Severability.

 <<NOTE: Agricultural Market Transition Act. Contracts. Loans.>> TITLE 
I--AGRICULTURAL MARKET TRANSITION ACT

            Subtitle A--Short Title, Purpose, and Definitions

SEC. 101. <<NOTE: 7 USC 7201.>> SHORT TITLE AND PURPOSE.

    (a) Short Title.--This title may be cited as the ``Agricultural 
Market Transition Act''.
    (b) Purpose.--It is the purpose of this title--
            (1) to authorize the use of binding production flexibility 
        contracts between the United States and agricultural producers 
        to support farming certainty and flexibility while ensuring 
        continued compliance with farm conservation and wetland 
        protection requirements;
            (2) to make nonrecourse marketing assistance loans and loan 
        deficiency payments available for certain crops;
            (3) to improve the operation of farm programs for milk, 
        peanuts, and sugar; and
            (4) to establish a commission to undertake a comprehensive 
        review of past and future production agriculture in the United 
        States.

[[Page 110 STAT. 897]]

SEC. 102. <<NOTE: 7 USC 7202.>> DEFINITIONS.

    In this title:
            (1) Agricultural act of 1949.--Except in section 171, the 
        term ``Agricultural Act of 1949'' means the Agricultural Act of 
        1949 (7 U.S.C. 1421 et seq.), as in effect prior to the 
        suspensions under section 171(b)(1).
            (2) Considered planted.--The term ``considered planted'' 
        means acreage that is considered planted under title V of the 
        Agricultural Act of 1949 (7 U.S.C. 1461 et seq.) and such other 
        acreage as the Secretary considers fair and equitable.
            (3) Contract.--The terms ``contract'' and ``production 
        flexibility contract'' mean a production flexibility contract 
        entered into under section 111.
            (4) Contract acreage.--The term ``contract acreage'' means 1 
        or more crop acreage bases established for contract commodities 
        under title V of the Agricultural Act of 1949 (7 U.S.C. 1461 et 
        seq.) that would have been in effect for the 1996 crop (but for 
        suspension under section 171(b)(1)).
            (5) Contract commodity.--The term ``contract commodity'' 
        means wheat, corn, grain sorghum, barley, oats, upland cotton, 
        and rice.
            (6) Contract payment.--The term ``contract payment'' means a 
        payment made under this subtitle pursuant to a contract.
            (7) Department.--The term ``Department'' means the 
        Department of Agriculture.
            (8) Extra long staple cotton.--The term ``extra long staple 
        cotton'' means cotton that--
                    (A) is produced from pure strain varieties of the 
                Barbadense species or any hybrid thereof, or other 
                similar types of extra long staple cotton, designated by 
                the Secretary, having characteristics needed for various 
                end uses for which United States upland cotton is not 
                suitable and grown in irrigated cotton-growing regions 
                of the United States designated by the Secretary or 
                other areas designated by the Secretary as suitable for 
                the production of the varieties or types; and
                    (B) is ginned on a roller-type gin or, if authorized 
                by the Secretary, ginned on another type gin for 
                experimental purposes.
            (9) Farm program payment yield.--The term ``farm program 
        payment yield'' means the farm program payment yield established 
        for the 1995 crop of a contract commodity under section 505 of 
        the Agricultural Act of 1949 (7 U.S.C. 1465). The Secretary 
        shall adjust the farm program payment yield for the 1995 crop of 
        a contract commodity to account for any additional yield 
        payments made with respect to that crop under subsection (b)(2) 
        of the section.
            (10) Loan commodity.--The term ``loan commodity'' means each 
        contract commodity, extra long staple cotton, and oilseed.
            (11) Oilseed.--The term ``oilseed'' means a crop of 
        soybeans, sunflower seed, rapeseed, canola, safflower, flaxseed, 
        mustard seed, or, if designated by the Secretary, other 
        oilseeds.
            (12) Producer.--The term ``producer'' means an owner, 
        operator, landlord, tenant, or sharecropper who shares in the 
        risk of producing a crop and who is entitled to share in the 
        crop available for marketing from the farm, or would have

[[Page 110 STAT. 898]]

        shared had the crop been produced. In determining whether a 
        grower of hybrid seed is a producer, the Secretary shall not 
        take into consideration the existence of a hybrid seed contract.
            (13) Secretary.--The term ``Secretary'' means the Secretary 
        of Agriculture.
            (14) State.--The term ``State'' means each of the several 
        States of the United States, the District of Columbia, the 
        Commonwealth of Puerto Rico, and any other territory or 
        possession of the United States.
            (15) United states.--The term ``United States'', when used 
        in a geographical sense, means all of the States.

              Subtitle B--Production Flexibility Contracts

SEC. 111. <<NOTE: 7 USC 7211.>> AUTHORIZATION FOR USE OF PRODUCTION 
            FLEXIBILITY CONTRACTS.

    (a) Offer and Terms.--The Secretary shall offer to enter into a 
production flexibility contract with an eligible owner or producer 
described in subsection (b) on a farm containing eligible cropland. 
Under the terms of a contract, the owner or producer shall agree, in 
exchange for annual contract payments, to--
            (1) comply with applicable conservation requirements under 
        subtitle B of title XII of the Food Security Act of 1985 (16 
        U.S.C. 3811 et seq.);
            (2) comply with applicable wetland protection requirements 
        under subtitle C of title XII of the Act (16 U.S.C. 3821 et 
        seq.);
            (3) comply with the planting flexibility requirements of 
        section 118; and
            (4) use the land subject to the contract for an agricultural 
        or related activity, but not for a nonagricultural commercial or 
        industrial use, as determined by the Secretary.

    (b) Eligible Owners and Producers Described.--The following 
producers and owners shall be eligible to enter into a contract:
            (1) An owner of eligible cropland who assumes all or a part 
        of the risk of producing a crop.
            (2) A producer (other than an owner) on eligible cropland 
        with a share-rent lease of the eligible cropland, regardless of 
        the length of the lease, if the owner enters into the same 
        contract.
            (3) A producer (other than an owner) on eligible cropland 
        who cash rents the eligible cropland under a lease expiring on 
        or after September 30, 2002, in which case the owner is not 
        required to enter into the contract.
            (4) A producer (other than an owner) on eligible cropland 
        who cash rents the eligible cropland under a lease expiring 
        before September 30, 2002. The owner of the eligible cropland 
        may also enter into the same contract. If the producer elects to 
        enroll less than 100 percent of the eligible cropland in the 
        contract, the consent of the owner is required.
            (5) An owner of eligible cropland who cash rents the 
        eligible cropland and the lease term expires before September 
        30, 2002, if the tenant declines to enter into a contract. In 
        the case of an owner covered by this paragraph, contract 
        payments

[[Page 110 STAT. 899]]

        shall not begin under a contract until the lease held by the 
        tenant ends.
            (6) An owner or producer described in any preceding 
        paragraph regardless of whether the owner or producer purchased 
        catastrophic risk protection for a 1996 crop under section 
        508(b) of the Federal Crop Insurance Act (7 U.S.C. 1508(b)).

    (c) Tenants and Sharecroppers.--In carrying out this subtitle, the 
Secretary shall provide adequate safeguards to protect the interests of 
tenants and sharecroppers.
    (d) Eligible Cropland Described.--Land shall be considered to be 
cropland eligible for coverage under a contract only if the land has 
contract acreage attributable to the land and--
            (1) for at least 1 of the 1991 through 1995 crops, at least 
        a portion of the land was enrolled in the acreage reduction 
        program authorized for a crop of a contract commodity under 
        section 101B, 103B, 105B, or 107B of the Agricultural Act of 
        1949 or was considered planted;
            (2) was subject to a conservation reserve contract under 
        section 1231 of the Food Security Act of 1985 (16 U.S.C. 3831) 
        whose term expired, or was voluntarily terminated, on or after 
        January 1, 1995; or
            (3) is released from coverage under a conservation reserve 
        contract by the Secretary during the period beginning on January 
        1, 1995, and ending on the date specified in section 112(a)(2).

    (e) Quantity of Eligible Cropland Covered by Contract.--Subject to 
subsection (b)(4), an owner or producer may enroll as contract acreage 
all or a portion of the eligible cropland on the farm.
    (f) Voluntary Reduction in Contract Acreage.--Subject to subsection 
(b)(4), an owner or producer who enters into a contract may subsequently 
reduce the quantity of contract acreage covered by the contract.

SEC. 112. <<NOTE: 7 USC 7212.>> ELEMENTS OF CONTRACTS.

    (a) Time for Contracting.--
            (1) Commencement.--To the extent practicable, the Secretary 
        shall commence entering into contracts not later than 45 days 
        after the date of enactment of this title.
            (2) Deadline.--Except as provided in paragraph (3), the 
        Secretary may not enter into a contract after August 1, 1996.
            (3) Conservation reserve lands.--
                    (A) In general.--At the beginning of each fiscal 
                year, the Secretary shall allow an eligible owner or 
                producer on a farm covered by a conservation reserve 
                contract entered into under section 1231 of the Food 
                Security Act of 1985 (16 U.S.C. 3831) that terminates 
                after the date specified in paragraph (2) to enter into 
                or expand a production flexibility contract to cover the 
                contract acreage of the farm that was subject to the 
                former conservation reserve contract.
                    (B) Amount.--Contract payments made for contract 
                acreage under this paragraph shall be made at the rate 
                and amount applicable to the annual contract payment 
                level for the applicable crop. For the fiscal year in 
                which the conservation reserve contract is terminated, 
                the owner or producer subject to the production 
                flexibility contract

[[Page 110 STAT. 900]]

                may elect to receive either contract payments or a 
                prorated payment under the conservation reserve 
                contract, but not both.

    (b) Duration of Contract.--
            (1) Beginning date.--The term of a contract shall begin 
        with--
                    (A) the 1996 crop of a contract commodity; or
                    (B) in the case of acreage that was subject to a 
                conservation reserve contract described in subsection 
                (a)(3), the date the production flexibility contract was 
                entered into or expanded to cover the acreage.
            (2) Ending date.--The term of a contract shall extend 
        through the 2002 crop, unless earlier terminated by the owner or 
        producer.

    (c) Estimation of Contract Payments.--At the time the Secretary 
enters into a contract, the Secretary shall provide an estimate of the 
minimum contract payments anticipated to be made during at least the 
first fiscal year for which contract payments will be made.
    (d) Time for Payment.--
            (1) In general.--An annual contract payment shall be made 
        not later than September 30 of each of fiscal years 1996 through 
        2002.
            (2) Advance payments.--
                    (A) Fiscal year 1996.--At the option of the owner or 
                producer, 50 percent of the contract payment for fiscal 
                year 1996 shall be made not later than 30 days after the 
                date on which the contract is entered into and approved 
                by the Secretary and the owner or producer.
                    (B) Subsequent fiscal years.--At the option of the 
                owner or producer for fiscal year 1997 and each 
                subsequent fiscal year, 50 percent of the annual 
                contract payment shall be made on December 15 or January 
                15 of the fiscal year. The owner or producer may change 
                the date selected under this subparagraph for a 
                subsequent fiscal year by providing advance notice to 
                the Secretary.

SEC. 113. <<NOTE: 7 USC 7213.>> AMOUNTS AVAILABLE FOR CONTRACT PAYMENTS.

    (a) Fiscal Year Amounts.--The Secretary shall, to the maximum extent 
practicable, expend the following amounts to satisfy the obligations of 
the Secretary under all contracts:
            (1) For fiscal year 1996, $5,570,000,000.
            (2) For fiscal year 1997, $5,385,000,000.
            (3) For fiscal year 1998, $5,800,000,000.
            (4) For fiscal year 1999, $5,603,000,000.
            (5) For fiscal year 2000, $5,130,000,000.
            (6) For fiscal year 2001, $4,130,000,000.
            (7) For fiscal year 2002, $4,008,000,000.

    (b) Allocation.--The amount made available for a fiscal year under 
subsection (a) shall be allocated as follows:
            (1) For wheat, 26.26 percent.
            (2) For corn, 46.22 percent.
            (3) For grain sorghum, 5.11 percent.
            (4) For barley, 2.16 percent.
            (5) For oats, 0.15 percent.
            (6) For upland cotton, 11.63 percent.
            (7) For rice, 8.47 percent.

[[Page 110 STAT. 901]]

    (c) Adjustment.--The Secretary shall adjust the amounts allocated 
for each contract commodity under subsection (b) for a particular fiscal 
year by--
            (1) adding an amount equal to the sum of all repayments of 
        deficiency payments required under section 114(a)(2) of the 
        Agricultural Act of 1949 (7 U.S.C. 1445j(a)(2)) for the 
        commodity;
            (2) adding an amount equal to the sum of all refunds of 
        contract payments received during the preceding fiscal year 
        under section 116 for the commodity; and
            (3) subtracting an amount equal to the amount, if any, 
        necessary during that fiscal year to satisfy payment 
        requirements for the commodity under sections 103B, 105B, or 
        107B of the Agricultural Act of 1949 for the 1994 and 1995 crop 
        years.

    (d) Additional Rice Allocation.--In addition to the adjustments 
required under subsection (c), the amount allocated under subsection (b) 
for rice contract payments shall be increased by $8,500,000 for each of 
fiscal years 1997 through 2002.
    (e) Exclusion of Certain Amounts From Contract Payments.--Any amount 
added pursuant to paragraphs (1) and (2) of subsection (c) to the amount 
available under subsection (a) for a fiscal year and paid to owners and 
producers under a contract shall not be treated as a contract payment 
for purposes of section 115(a) of this title or section 1001(1) of the 
Food Security Act of 1985 (7 U.S.C. 1308(1)). However, the amount of a 
payment covered by this subsection may not exceed $50,000 per person.
    (f) Effect of Payment Limitation.--The amount available under 
subsection (a) for a fiscal year shall be reduced by an amount equal to 
the total amount of contract payments for the fiscal year that owners 
and producers forgo as a result of operation of the payment limitation 
under section 1001(1) of the Food Security Act of 1985 (7 U.S.C. 
1308(1)).

SEC. 114. <<NOTE: 7 USC 7214.>> DETERMINATION OF CONTRACT PAYMENTS UNDER 
            CONTRACTS.

    (a) Individual Payment Quantity of Contract Commodities.--For each 
contract, the payment quantity of a contract commodity for each fiscal 
year shall be equal to the product of--
            (1) 85 percent of the contract acreage; and
            (2) the farm program payment yield.

    (b) Annual Payment Quantity of Contract Commodities.--The payment 
quantity of each contract commodity covered by all contracts for each 
fiscal year shall be equal to the sum of the amounts calculated under 
subsection (a) for each individual contract.
    (c) Annual Payment Rate.--The payment rate for a contract commodity 
for each fiscal year shall be equal to--
            (1) the amount made available under section 113 for the 
        contract commodity for the fiscal year; divided by
            (2) the amount determined under subsection (b) for the 
        fiscal year.

    (d) Annual Payment Amount.--The amount to be paid under a contract 
in effect for each fiscal year with respect to all contract commodities 
covered by the contract shall be equal to the sum of the products of--

[[Page 110 STAT. 902]]

            (1) the payment quantity determined under subsection (a) for 
        each of the contract commodities covered by the contract; and
            (2) the corresponding payment rate for the contract 
        commodity in effect under subsection (c).

    (e) Reduction in Payment Amount.--The contract payment determined 
under subsection (d) for an owner or producer for a fiscal year shall be 
immediately reduced by the amount of any repayment of deficiency 
payments that is required under section 114(a)(2) of the Agricultural 
Act of 1949 (7 U.S.C. 1445j(a)(2)) and is not repaid as of the date the 
contract payment is determined. The Secretary shall be required to 
collect the required repayment, or any claim based on the required 
repayment, as soon as the contract payment is determined.
    (f) Assignment of Contract Payments.--The provisions of section 8(g) 
of the Soil Conservation and Domestic Allotment Act (16 U.S.C. 590h(g)) 
(relating to assignment of payments) shall apply to contract payments 
under this section. The owner or producer making the assignment, or the 
assignee, shall provide the Secretary with notice, in such manner as the 
Secretary may require in the contract, of any assignment made under this 
subsection.
    (g) Sharing of Contract Payments.--The Secretary shall provide for 
the sharing of contract payments among the owners and producers subject 
to the contract on a fair and equitable basis.

SEC. 115. <<NOTE: 7 USC 7215.>> PAYMENT LIMITATIONS.

    (a) Applicability of Payment Limitations.--Sections 1001 through 
1001C of the Food Security Act of 1985 (7 U.S.C. 1308 through 1308-3), 
as amended by this section, shall be applicable to contract payments 
made under this subtitle.
    (b) Payment Limitations.--Section 1001 of the Food Security Act of 
1985 (7 U.S.C. 1308) is amended by striking paragraphs (1) through (4) 
and inserting the following:
            ``(1) Limitation on payments under production flexibility 
        contracts.--The total amount of contract payments made under the 
        Agricultural Market Transition Act to a person under 1 or more 
        production flexibility contracts during any fiscal year may not 
        exceed $40,000.
            ``(2) Limitation on marketing loan gains and loan deficiency 
        payments.--The total amount of the payments specified in 
        paragraph (3) that a person shall be entitled to receive under 
        the Agricultural Market Transition Act for 1 or more contract 
        commodities and oilseeds during any crop year may not exceed 
        $75,000.
            ``(3) Description of payments subject to limitation.--The 
        payments referred to in paragraph (2) are the following:
                    ``(A) Any gain realized by a producer from repaying 
                a marketing assistance loan under section 131 of the 
                Agricultural Market Transition Act for a crop of any 
                loan commodity at a lower level than the original loan 
                rate established for the loan commodity under section 
                132 of the Act.
                    ``(B) Any loan deficiency payment received for a 
                loan commodity under section 135 of the Act.
            ``(4) Definitions.--In this title, the terms `contract 
        commodity', `contract payment', `loan commodity', `oilseed', and 
        `production flexibility contract' have the meaning given those

[[Page 110 STAT. 903]]

        terms in section 102 of the Agricultural Market Transition 
        Act.''.

    (c) Conforming Amendments.--
            (1) Section 1001A of the Food Security Act of 1985 (7 U.S.C. 
        1308-1) is amended--
                    (A) in subsection (a)(1), by striking ``under the 
                Agricultural Act of 1949 (7 U.S.C. 1421 et seq.)''; and
                    (B) in subsection (b)(1), by striking ``under the 
                Agricultural Act of 1949''.
            (2) Section 1001C(a) of the Act (7 U.S.C. 1308-3(a)) is 
        amended--
                    (A) by striking ``For each of the 1991 through 1997 
                crops, any'' and inserting ``Any'';
                    (B) by striking ``production adjustment payments, 
                price support program loans, payments, or benefits made 
                available under the Agricultural Act of 1949 (7 U.S.C. 
                1421 et seq.),'' and inserting ``loans or payments made 
                available under the Agricultural Market Transition 
                Act,''; and
                    (C) by striking ``during the 1989 through 1997 crop 
                years''.

SEC. 116. <<NOTE: 7 USC 7216.>> VIOLATIONS OF CONTRACT.

    (a) Termination of Contract For Violation.--Except as provided in 
subsection (b), if an owner or producer subject to a contract violates a 
requirement of the contract specified in section 111(a), the Secretary 
shall terminate the contract with respect to the owner or producer on 
each farm in which the owner or producer has an interest. On the 
termination, the owner or producer shall forfeit all rights to receive 
future contract payments on each farm in which the owner or producer has 
an interest and shall refund to the Secretary all contract payments 
received by the owner or producer during the period of the violation, 
together with interest on the contract payments as determined by the 
Secretary.
    (b) Refund or Adjustment.--If the Secretary determines that a 
violation does not warrant termination of the contract under subsection 
(a), the Secretary may require the owner or producer subject to the 
contract--
            (1) to refund to the Secretary that part of the contract 
        payments received by the owner or producer during the period of 
        the violation, together with interest on the contract payments 
        as determined by the Secretary; or
            (2) to accept a reduction in the amount of future contract 
        payments that is proportionate to the severity of the violation, 
        as determined by the Secretary.

    (c) Foreclosure.--
            (1) Effect of foreclosure.--An owner or producer subject to 
        a contract may not be required to make repayments to the 
        Secretary of amounts received under the contract if the contract 
        acreage has been foreclosed on and the Secretary determines that 
        forgiving the repayments is appropriate to provide fair and 
        equitable treatment.
            (2) Resumption of operation.--This subsection shall not void 
        the responsibilities of the owner or producer under the contract 
        if the owner or producer continues or resumes operation, or 
        control, of the contract acreage. On the resumption of operation 
        or control over the contract acreage by the owner

[[Page 110 STAT. 904]]

        or producer, the provisions of the contract in effect on the 
        date of the foreclosure shall apply.

    (d) Review.--A determination of the Secretary under this section 
shall be considered to be an adverse decision for purposes of the 
availability of administrative review of the determination.

SEC. 117. <<NOTE: 7 USC 7217.>> TRANSFER OR CHANGE OF INTEREST IN LANDS 
            SUBJECT TO CONTRACT.

    (a) Termination.--Except as provided in subsection (c), a transfer 
of (or change in) the interest of an owner or producer subject to a 
contract in the contract acreage covered by the contract shall result in 
the termination of the contract with respect to the acreage, unless the 
transferee or owner of the acreage agrees to assume all obligations 
under the contract. The termination shall be effective on the date of 
the transfer or change.
    (b) Modification.--At the request of the transferee or owner, the 
Secretary may modify the contract if the modifications are consistent 
with the objectives of this subtitle, as determined by the Secretary.
    (c) Exception.--If an owner or producer who is entitled to a 
contract payment dies, becomes incompetent, or is otherwise unable to 
receive the contract payment, the Secretary shall make the payment, in 
accordance with regulations prescribed by the Secretary.

SEC. 118. <<NOTE: 7 USC 7218.>> PLANTING FLEXIBILITY.

    (a) Permitted Crops.--Subject to subsection (b), any commodity or 
crop may be planted on contract acreage on a farm.
    (b) Limitations and Exceptions Regarding Fruits and Vegetables.--
            (1) Limitations.--The planting of fruits and vegetables 
        (other than lentils, mung beans, and dry peas) shall be 
        prohibited on contract acreage.
            (2) Exceptions.--Paragraph (1) shall not limit the planting 
        of a fruit or vegetable--
                    (A) in any region in which there is a history of 
                double-cropping of contract commodities with fruits or 
                vegetables, as determined by the Secretary, in which 
                case the double-cropping shall be permitted;
                    (B) on a farm that the Secretary determines has a 
                history of planting fruits or vegetables on contract 
                acreage, except that a contract payment shall be reduced 
                by an acre for each acre planted to the fruit or 
                vegetable; or
                    (C) by a producer who the Secretary determines has 
                an established planting history of a specific fruit or 
                vegetable, except that--
                          (i) the quantity planted may not exceed the 
                      producer's average annual planting history of the 
                      fruit or vegetable in the 1991 through 1995 crop 
                      years (excluding any crop year in which no 
                      plantings were made), as determined by the 
                      Secretary; and
                          (ii) a contract payment shall be reduced by an 
                      acre for each acre planted to the fruit or 
                      vegetable.

[[Page 110 STAT. 905]]

 Subtitle C--Nonrecourse Marketing Assistance Loans and Loan Deficiency 
                                Payments

SEC. 131. <<NOTE: 7 USC 7231.>> AVAILABILITY OF NONRECOURSE MARKETING 
            ASSISTANCE LOANS.

    (a) Nonrecourse Loans Available.--For each of the 1996 through 2002 
crops of each loan commodity, the Secretary shall make available to 
producers on a farm nonrecourse marketing assistance loans for loan 
commodities produced on the farm. The loans shall be made under terms 
and conditions that are prescribed by the Secretary and at the loan rate 
established under section 132 for the loan commodity.
    (b) Eligible Production.--The following production shall be eligible 
for a marketing assistance loan under subsection (a):
            (1) In the case of a marketing assistance loan for a 
        contract commodity, any production by a producer on a farm 
        containing eligible cropland covered by a production flexibility 
        contract.
            (2) In the case of a marketing assistance loan for extra 
        long staple cotton and oilseeds, any production.

    (c) Compliance With Conservation and Wetlands Requirements.--As a 
condition of the receipt of a marketing assistance loan under subsection 
(a), the producer shall comply with applicable conservation requirements 
under subtitle B of title XII of the Food Security Act of 1985 (16 
U.S.C. 3811 et seq.) and applicable wetland protection requirements 
under subtitle C of title XII of the Act (16 U.S.C. 3821 et seq.) during 
the term of the loan.
    (d) Additional Outlays Prohibited.--The Secretary shall carry out 
this subtitle in such a manner that there are no additional outlays 
under this subtitle as a result of the reconstitution of a farm that 
occurs as a result of the combination of another farm that does not 
contain eligible cropland covered by a production flexibility contract.

SEC. 132. <<NOTE: 7 USC 7232.>> LOAN RATES FOR MARKETING ASSISTANCE 
            LOANS.

    (a) Wheat.--
            (1) Loan rate.--Subject to paragraph (2), the loan rate for 
        a marketing assistance loan under section 131 for wheat shall 
        be--
                    (A) not less than 85 percent of the simple average 
                price received by producers of wheat, as determined by 
                the Secretary, during the marketing years for the 
                immediately preceding 5 crops of wheat, excluding the 
                year in which the average price was the highest and the 
                year in which the average price was the lowest in the 
                period; but
                    (B) not more than $2.58 per bushel.
            (2) Stocks to use ratio adjustment.--If the Secretary 
        estimates for any marketing year that the ratio of ending stocks 
        of wheat to total use for the marketing year will be--
                    (A) equal to or greater than 30 percent, the 
                Secretary may reduce the loan rate for wheat for the 
                corresponding crop by an amount not to exceed 10 percent 
                in any year;
                    (B) less than 30 percent but not less than 15 
                percent, the Secretary may reduce the loan rate for 
                wheat for the

[[Page 110 STAT. 906]]

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

    (b) Feed Grains.--
            (1) Loan rate for corn.--Subject to paragraph (2), the loan 
        rate for a marketing assistance loan under section 131 for corn 
        shall be--
                    (A) not less than 85 percent of the simple average 
                price received by producers of corn, as determined by 
                the Secretary, during the marketing years for the 
                immediately preceding 5 crops of corn, excluding the 
                year in which the average price was the highest and the 
                year in which the average price was the lowest in the 
                period; but
                    (B) not more than $1.89 per bushel.
            (2) Stocks to use ratio adjustment.--If the Secretary 
        estimates for any marketing year that the ratio of ending stocks 
        of corn to total use for the marketing year will be--
                    (A) equal to or greater than 25 percent, the 
                Secretary may reduce the loan rate for corn for the 
                corresponding crop by an amount not to exceed 10 percent 
                in any year;
                    (B) less than 25 percent but not less than 12.5 
                percent, the Secretary may reduce the loan rate for corn 
                for the corresponding crop by an amount not to exceed 5 
                percent in any year; or
                    (C) less than 12.5 percent, the Secretary may not 
                reduce the loan rate for corn for the corresponding 
                crop.
            (3) Other feed grains.--The loan rate for a marketing 
        assistance loan under section 131 for grain sorghum, barley, and 
        oats, respectively, shall be established at such level as the 
        Secretary determines is fair and reasonable in relation to the 
        rate that loans are made available for corn, taking into 
        consideration the feeding value of the commodity in relation to 
        corn.

    (c) Upland Cotton.--
            (1) Loan rate.--Subject to paragraph (2), the loan rate for 
        a marketing assistance loan under section 131 for upland cotton 
        shall be established by the Secretary at such loan rate, per 
        pound, as will reflect for the base quality of upland cotton, as 
        determined by the Secretary, at average locations in the United 
        States a rate that is not less than the smaller of--
                    (A) 85 percent of the average price (weighted by 
                market and month) of the base quality of cotton as 
                quoted in the designated United States spot markets 
                during 3 years of the 5-year period ending July 31 of 
                the year preceding the year in which the crop is 
                planted, excluding the year in which the average price 
                was the highest and the year in which the average price 
                was the lowest in the period; or
                    (B) 90 percent of the average, for the 15-week 
                period beginning July 1 of the year preceding the year 
                in which the crop is planted, of the 5 lowest-priced 
                growths of the growths quoted for Middling 1\3/32\-inch 
                cotton C.I.F. Northern Europe (adjusted downward by the 
                average difference during the period April 15 through 
                October 15 of the year preceding the year in which the 
                crop is planted between the average Northern European 
                price quotation of such

[[Page 110 STAT. 907]]

                quality of cotton and the market quotations in the 
                designated United States spot markets for the base 
                quality of upland cotton), as determined by the 
                Secretary.
            (2) Limitations.--The loan rate for a marketing assistance 
        loan for upland cotton shall not be less than $0.50 per pound or 
        more than $0.5192 per pound.

    (d) Extra Long Staple Cotton.--The loan rate for a marketing 
assistance loan under section 131 for extra long staple cotton shall 
be--
            (1) not less than 85 percent of the simple average price 
        received by producers of extra long staple cotton, as determined 
        by the Secretary, during 3 years of the 5-year period ending 
        July 31 of the year preceding the year in which the crop is 
        planted, excluding the year in which the average price was the 
        highest and the year in which the average price was the lowest 
        in the period; but
            (2) not more than $0.7965 per pound.

    (e) Rice.--The loan rate for a marketing assistance loan under 
section 131 for rice shall be $6.50 per hundredweight.
    (f) Oilseeds.--
            (1) Soybeans.--The loan rate for a marketing assistance loan 
        under section 131 for soybeans shall be--
                    (A) not less than 85 percent of the simple average 
                price received by producers of soybeans, as determined 
                by the Secretary, during the marketing years for the 
                immediately preceding 5 crops of soybeans, excluding the 
                year in which the average price was the highest and the 
                year in which the average price was the lowest in the 
                period; but
                    (B) not less than $4.92 or more than $5.26 per 
                bushel.
            (2) Sunflower seed, canola, rapeseed, safflower, mustard 
        seed, and flaxseed.--The loan rate for a marketing assistance 
        loan under section 131 for sunflower seed, canola, rapeseed, 
        safflower, mustard seed, and flaxseed, individually, shall be--
                    (A) not less than 85 percent of the simple average 
                price received by producers of sunflower seed, 
                individually, as determined by the Secretary, during the 
                marketing years for the immediately preceding 5 crops of 
                sunflower seed, individually, excluding the year in 
                which the average price was the highest and the year in 
                which the average price was the lowest in the period; 
                but
                    (B) not less than $0.087 or more than $0.093 per 
                pound.
            (3) Other oilseeds.--The loan rates for a marketing 
        assistance loan under section 131 for other oilseeds shall be 
        established at such level as the Secretary determines is fair 
        and reasonable in relation to the loan rate available for 
        soybeans, except in no event shall the rate for the oilseeds 
        (other than cottonseed) be less than the rate established for 
        soybeans on a per-pound basis for the same crop.

SEC. 133. <<NOTE: 7 USC 7233.>> TERM OF LOANS.

    (a) Term of Loan.--In the case of each loan commodity (other than 
upland cotton or extra long staple cotton), a marketing assistance loan 
under section 131 shall have a term of 9 months beginning

[[Page 110 STAT. 908]]

on the first day of the first month after the month in which the loan is 
made.
    (b) Special Rule for Cotton.--A marketing assistance loan for upland 
cotton or extra long staple cotton shall have a term of 10 months 
beginning on the first day of the month in which the loan is made.
    (c) Extensions Prohibited.--The Secretary may not extend the term of 
a marketing assistance loan for any loan commodity.

SEC. 134. <<NOTE: 7 USC 7234.>> REPAYMENT OF LOANS.

    (a) Repayment Rates for Wheat, Feed Grains, and Oilseeds.--The 
Secretary shall permit a producer to repay a marketing assistance loan 
under section 131 for wheat, corn, grain sorghum, barley, oats, and 
oilseeds at a rate that is the lesser of--
            (1) the loan rate established for the commodity under 
        section 132, plus interest (as determined by the Secretary); or
            (2) a rate that the Secretary determines will--
                    (A) minimize potential loan forfeitures;
                    (B) minimize the accumulation of stocks of the 
                commodity by the Federal Government;
                    (C) minimize the cost incurred by the Federal 
                Government in storing the commodity; and
                    (D) allow the commodity produced in the United 
                States to be marketed freely and competitively, both 
                domestically and internationally.

    (b) Repayment Rates for Upland Cotton and Rice.--The Secretary shall 
permit producers to repay a marketing assistance loan under section 131 
for upland cotton and rice at a rate that is the lesser of--
            (1) the loan rate established for the commodity under 
        section 132, plus interest (as determined by the Secretary); or
            (2) the prevailing world market price for the commodity 
        (adjusted to United States quality and location), as determined 
        by the Secretary.

    (c) Repayment Rates for Extra Long Staple Cotton.--Repayment of a 
marketing assistance loan for extra long staple cotton shall be at the 
loan rate established for the commodity under section 132, plus interest 
(as determined by the Secretary).
    (d) <<NOTE: Regulations.>> Prevailing World Market Price.--For 
purposes of this section and section 136, the Secretary shall prescribe 
by regulation--
            (1) a formula to determine the prevailing world market price 
        for each loan commodity, adjusted to United States quality and 
        location; and
            (2) a mechanism by which the Secretary shall announce 
        periodically the prevailing world market price for each loan 
        commodity.

    (e) Adjustment of Prevailing World Market Price for Upland Cotton.--
            (1) In general.--During the period ending July 31, 2003, the 
        prevailing world market price for upland cotton (adjusted to 
        United States quality and location) established under subsection 
        (d) shall be further adjusted if--
                    (A) the adjusted prevailing world market price is 
                less than 115 percent of the loan rate for upland cotton 
                established under section 132, as determined by the 
                Secretary; and

[[Page 110 STAT. 909]]

                    (B) the Friday through Thursday average price 
                quotation for the lowest-priced United States growth as 
                quoted for Middling (M) 1\3/32\-inch cotton delivered 
                C.I.F. Northern Europe is greater than the Friday 
                through Thursday average price of the 5 lowest-priced 
                growths of upland cotton, as quoted for Middling (M) 
                1\3/32\-inch cotton, delivered C.I.F. Northern Europe 
                (referred to in this section as the ``Northern Europe 
                price'').
            (2) Further adjustment.--Except as provided in paragraph 
        (3), the adjusted prevailing world market price for upland 
        cotton shall be further adjusted on the basis of some or all of 
        the following data, as available:
                    (A) The United States share of world exports.
                    (B) The current level of cotton export sales and 
                cotton export shipments.
                    (C) Other data determined by the Secretary to be 
                relevant in establishing an accurate prevailing world 
                market price for upland cotton (adjusted to United 
                States quality and location).
            (3) Limitation on further adjustment.--The adjustment under 
        paragraph (2) may not exceed the difference between--
                    (A) the Friday through Thursday average price for 
                the lowest-priced United States growth as quoted for 
                Middling 1\3/32\-inch cotton delivered C.I.F. Northern 
                Europe; and
                    (B) the Northern Europe price.

SEC. 135. <<NOTE: 7 USC 7235.>> LOAN DEFICIENCY PAYMENTS.

    (a) Availability of Loan Deficiency Payments.--Except as provided in 
subsection (d), the Secretary may make loan deficiency payments 
available to producers who, although eligible to obtain a marketing 
assistance loan under section 131 with respect to a loan commodity, 
agree to forgo obtaining the loan for the commodity in return for 
payments under this section.
    (b) Computation.--A loan deficiency payment under this section shall 
be computed by multiplying--
            (1) the loan payment rate determined under subsection (c) 
        for the loan commodity; by
            (2) the quantity of the loan commodity that the producers on 
        a farm are eligible to place under loan but for which the 
        producers forgo obtaining the loan in return for payments under 
        this section.

    (c) Loan Payment Rate.--For purposes of this section, the loan 
payment rate shall be the amount by which--
            (1) the loan rate established under section 132 for the loan 
        commodity; exceeds
            (2) the rate at which a loan for the commodity may be repaid 
        under section 134.

    (d) Exception for Extra Long Staple Cotton.--This section shall not 
apply with respect to extra long staple cotton.

SEC. 136. <<NOTE: 7 USC 7236.>> SPECIAL MARKETING LOAN PROVISIONS FOR 
            UPLAND COTTON.

    (a) Cotton User Marketing Certificates.--
            (1) Issuance.--Subject to paragraph (4), during the period 
        ending July 31, 2003, the Secretary shall issue marketing 
        certificates or cash payments to domestic users and exporters 
        for documented purchases by domestic users and sales for

[[Page 110 STAT. 910]]

        export by exporters made in the week following a consecutive 4-
        week period in which--
                    (A) the Friday through Thursday average price 
                quotation for the lowest-priced United States growth, as 
                quoted for Middling (M) 1\3/32\-inch cotton, delivered 
                C.I.F. Northern Europe exceeds the Northern Europe price 
                by more than 1.25 cents per pound; and
                    (B) the prevailing world market price for upland 
                cotton (adjusted to United States quality and location) 
                does not exceed 130 percent of the loan rate for upland 
                cotton established under section 132.
            (2) Value of certificates or payments.--The value of the 
        marketing certificates or cash payments shall be based on the 
        amount of the difference (reduced by 1.25 cents per pound) in 
        the prices during the 4th week of the consecutive 4-week period 
        multiplied by the quantity of upland cotton included in the 
        documented sales.
            (3) Administration of marketing certificates.--
                    (A) Redemption, marketing, or exchange.--The 
                Secretary shall establish procedures for redeeming 
                marketing certificates for cash or marketing or exchange 
                of the certificates for agricultural commodities owned 
                by the Commodity Credit Corporation in such manner, and 
                at such price levels, as the Secretary determines will 
                best effectuate the purposes of cotton user marketing 
                certificates. Any price restrictions that would 
                otherwise apply to the disposition of agricultural 
                commodities by the Commodity Credit Corporation shall 
                not apply to the redemption of certificates under this 
                subsection.
                    (B) Designation of commodities and products.--To the 
                extent practicable, the Secretary shall permit owners of 
                certificates to designate the commodities and products, 
                including storage sites, the owners would prefer to 
                receive in exchange for certificates. If any certificate 
                is not presented for redemption, marketing, or exchange 
                within a reasonable number of days after the issuance of 
                the certificate (as determined by the Secretary), 
                reasonable costs of storage and other carrying charges, 
                as determined by the Secretary, shall be deducted from 
                the value of the certificate for the period beginning 
                after the reasonable number of days and ending with the 
                date of the presentation of the certificate to the 
                Commodity Credit Corporation.
                    (C) Transfers.--Marketing certificates issued to 
                domestic users and exporters of upland cotton may be 
                transferred to other persons in accordance with 
                regulations issued by the Secretary.
            (4) Exception.--The Secretary shall not issue marketing 
        certificates or cash payments under paragraph (1) if, for the 
        immediately preceding consecutive 10-week period, the Friday 
        through Thursday average price quotation for the lowest priced 
        United States growth, as quoted for Middling (M) 1\3/32\-inch 
        cotton, delivered C.I.F. Northern Europe, adjusted for the value 
        of any certificate issued under this subsection, exceeds the 
        Northern Europe price by more than 1.25 cents per pound.

[[Page 110 STAT. 911]]

            (5) Limitation on expenditures.--Total expenditures under 
        this subsection shall not exceed $701,000,000 during fiscal 
        years 1996 through 2002.

    (b) Special Import Quota.--
            (1) <<NOTE: President.>> Establishment.--The President shall 
        carry out an import quota program that provides that, during the 
        period ending July 31, 2003, whenever the Secretary determines 
        and announces that for any consecutive 10-week period, the 
        Friday through Thursday average price quotation for the lowest-
        priced United States growth, as quoted for Middling (M) 1\3/32\-
        inch cotton, delivered C.I.F. Northern Europe, adjusted for the 
        value of any certificates issued under subsection (a), exceeds 
        the Northern Europe price by more than 1.25 cents per pound, 
        there shall immediately be in effect a special import quota.
            (2) Quantity.--The quota shall be equal to 1 week's 
        consumption of upland cotton by domestic mills at the seasonally 
        adjusted average rate of the most recent 3 months for which data 
        are available.
            (3) Application.--The quota shall apply to upland cotton 
        purchased not later than 90 days after the date of the 
        Secretary's announcement under paragraph (1) and entered into 
        the United States not later than 180 days after the date.
            (4) Overlap.--A special quota period may be established that 
        overlaps any existing quota period if required by paragraph (1), 
        except that a special quota period may not be established under 
        this subsection if a quota period has been established under 
        subsection (c).
            (5) Preferential tariff treatment.--The quantity under a 
        special import quota shall be considered to be an in-quota 
        quantity for purposes of--
                    (A) section 213(d) of the Caribbean Basin Economic 
                Recovery Act (19 U.S.C. 2703(d));
                    (B) section 204 of the Andean Trade Preference Act 
                (19 U.S.C. 3203);
                    (C) section 503(d) of the Trade Act of 1974 (19 
                U.S.C. 2463(d)); and
                    (D) General Note 3(a)(iv) to the Harmonized Tariff 
                Schedule.
            (6) Definition.--In this subsection, the term ``special 
        import quota'' means a quantity of imports that is not subject 
        to the over-quota tariff rate of a tariff-rate quota.

    (c) Limited Global Import Quota for Upland Cotton.--
            (1) <<NOTE: President.>> In general.--The President shall 
        carry out an import quota program that provides that whenever 
        the Secretary determines and announces that the average price of 
        the base quality of upland cotton, as determined by the 
        Secretary, in the designated spot markets for a month exceeded 
        130 percent of the average price of such quality of cotton in 
        the markets for the preceding 36 months, notwithstanding any 
        other provision of law, there shall immediately be in effect a 
        limited global import quota subject to the following conditions:
                    (A) Quantity.--The quantity of the quota shall be 
                equal to 21 days of domestic mill consumption of upland 
                cotton at the seasonally adjusted average rate of the 
                most recent 3 months for which data are available.
                    (B) Quantity if prior quota.--If a quota has been 
                established under this subsection during the preceding 
                12

[[Page 110 STAT. 912]]

                months, the quantity of the quota next established under 
                this subsection shall be the smaller of 21 days of 
                domestic mill consumption calculated under subparagraph 
                (A) or the quantity required to increase the supply to 
                130 percent of the demand.
                    (C) Preferential tariff treatment.--The quantity 
                under a limited global import quota shall be considered 
                to be an in-quota quantity for purposes of--
                          (i) section 213(d) of the Caribbean Basin 
                      Economic Recovery Act (19 U.S.C. 2703(d));
                          (ii) section 204 of the Andean Trade 
                      Preference Act (19 U.S.C. 3203);
                          (iii) section 503(d) of the Trade Act of 1974 
                      (19 U.S.C. 2463(d)); and
                          (iv) General Note 3(a)(iv) to the Harmonized 
                      Tariff Schedule.
                    (D) Definitions.--In this subsection:
                          (i) Supply.--The term ``supply'' means, using 
                      the latest official data of the Bureau of the 
                      Census, the Department of Agriculture, and the 
                      Department of the Treasury--
                                    (I) the carry-over of upland cotton 
                                at the beginning of the marketing year 
                                (adjusted to 480-pound bales) in which 
                                the quota is established;
                                    (II) production of the current crop; 
                                and
                                    (III) imports to the latest date 
                                available during the marketing year.
                          (ii) Demand.--The term ``demand'' means--
                                    (I) the average seasonally adjusted 
                                annual rate of domestic mill consumption 
                                during the most recent 3 months for 
                                which data are available; and
                                    (II) the larger of--
                                            (aa) average exports of 
                                        upland cotton during the 
                                        preceding 6 marketing years; or
                                            (bb) cumulative exports of 
                                        upland cotton plus outstanding 
                                        export sales for the marketing 
                                        year in which the quota is 
                                        established.
                          (iii) Limited global import quota.--The term 
                      ``limited global import quota'' means a quantity 
                      of imports that is not subject to the over-quota 
                      tariff rate of a tariff-rate quota.
                    (E) Quota entry period.--When a quota is established 
                under this subsection, cotton may be entered under the 
                quota during the 90-day period beginning on the date the 
                quota is established by the Secretary.
            (2) No overlap.--Notwithstanding paragraph (1), a quota 
        period may not be established that overlaps an existing quota 
        period or a special quota period established under subsection 
        (b).

SEC. 137. <<NOTE: 7 USC 7237.>> AVAILABILITY OF RECOURSE LOANS FOR HIGH 
            MOISTURE FEED GRAINS AND SEED COTTON.

    (a) High Moisture Feed Grains.--
            (1) Recourse loans available.--For each of the 1996 through 
        2002 crops of corn and grain sorghum, the Secretary shall make 
        available recourse loans, as determined by the

[[Page 110 STAT. 913]]

        Secretary, to producers on a farm containing eligible cropland 
        covered by a production flexibility contract who--
                    (A) normally harvest all or a portion of their crop 
                of corn or grain sorghum in a high moisture state;
                    (B) present--
                          (i) certified scale tickets from an inspected, 
                      certified commercial scale, including a licensed 
                      warehouse, feedlot, feed mill, distillery, or 
                      other similar entity approved by the Secretary, 
                      pursuant to regulations issued by the Secretary; 
                      or
                          (ii) field or other physical measurements of 
                      the standing or stored crop in regions of the 
                      United States, as determined by the Secretary, 
                      that do not have certified commercial scales from 
                      which certified scale tickets may be obtained 
                      within reasonable proximity of harvest operation;
                    (C) certify that they were the owners of the feed 
                grain at the time of delivery to, and that the quantity 
                to be placed under loan under this subsection was in 
                fact harvested on the farm and delivered to, a feedlot, 
                feed mill, or commercial or on-farm high-moisture 
                storage facility, or to a facility maintained by the 
                users of corn and grain sorghum in a high moisture 
                state; and
                    (D) comply with deadlines established by the 
                Secretary for harvesting the corn or grain sorghum and 
                submit applications for loans under this subsection 
                within deadlines established by the Secretary.
            (2) Eligibility of acquired feed grains.--A loan under this 
        subsection shall be made on a quantity of corn or grain sorghum 
        of the same crop acquired by the producer equivalent to a 
        quantity determined by multiplying--
                    (A) the acreage of the corn or grain sorghum in a 
                high moisture state harvested on the producer's farm; by
                    (B) the lower of the farm program payment yield or 
                the actual yield on a field, as determined by the 
                Secretary, that is similar to the field from which the 
                corn or grain sorghum was obtained.
            (3) High moisture state defined.--In this subsection, the 
        term ``high moisture state'' means corn or grain sorghum having 
        a moisture content in excess of Commodity Credit Corporation 
        standards for marketing assistance loans made by the Secretary 
        under section 131.

    (b) Recourse Loans Available for Seed Cotton.--
            (1) Upland cotton.--For each of the 1996 through 2002 crops 
        of upland cotton, the Secretary shall make available recourse 
        seed cotton loans, as determined by the Secretary, to producers 
        on a farm containing eligible cropland covered by a production 
        flexibility contract.
            (2) Extra long staple cotton.--For each of the 1996 through 
        2002 crops of extra long staple cotton, the Secretary shall make 
        available recourse seed cotton loans, as determined by the 
        Secretary, on any production.

    (c) Repayment Rates.--Repayment of a recourse loan made under this 
section shall be at the loan rate established for the commodity by the 
Secretary, plus interest (as determined by the Secretary).

[[Page 110 STAT. 914]]

                      Subtitle D--Other Commodities

                            CHAPTER 1--DAIRY

SEC. 141. <<NOTE: 7 USC 7251.>> MILK PRICE SUPPORT PROGRAM.

    (a) Support Activities.--The Secretary of Agriculture shall support 
the price of milk produced in the 48 contiguous States through the 
purchase of cheese, butter, and nonfat dry milk produced from the milk.
    (b) Rate.--The price of milk shall be supported at the following 
rates per hundredweight for milk containing 3.67 percent butterfat:
            (1) During calendar year 1996, $10.35.
            (2) During calendar year 1997, $10.20.
            (3) During calendar year 1998, $10.05.
            (4) During calendar year 1999, $9.90.

    (c) Purchase Prices.--The support purchase prices under this section 
for each of the products of milk (butter, cheese, and nonfat dry milk) 
announced by the Secretary shall be the same for all of that product 
sold by persons offering to sell the product to the Secretary. The 
purchase prices shall be sufficient to enable plants of average 
efficiency to pay producers, on average, a price that is not less than 
the rate of price support for milk in effect under subsection (b).
    (d) Special Rule for Butter and Nonfat Dry Milk Purchase Prices.--
            (1) Allocation of purchase prices.--The Secretary may 
        allocate the rate of price support between the purchase prices 
        for nonfat dry milk and butter in a manner that will result in 
        the lowest level of expenditures by the Commodity Credit 
        Corporation or achieve such other objectives as the Secretary 
        considers appropriate. Not later than 10 days after making or 
        changing an allocation, the Secretary shall notify the Committee 
        on Agriculture of the House of Representatives and the Committee 
        on Agriculture, Nutrition, and Forestry of the Senate of the 
        allocation. Section 553 of title 5, United States Code, shall 
        not apply with respect to the implementation of this section.
            (2) Timing of purchase price adjustments.--The Secretary may 
        make any such adjustments in the purchase prices for nonfat dry 
        milk and butter the Secretary considers to be necessary not more 
        than twice in each calendar year.

    (e) Refunds of 1995 and 1996 Assessments.--
            (1) Refund required.--The Secretary shall provide for a 
        refund of the entire reduction required under section 204(h)(2) 
        of the Agricultural Act of 1949 (7 U.S.C. 1446e(h)(2)), as in 
        effect on the day before the amendment made by subsection (g), 
        in the price of milk received by a producer during calendar year 
        1995 or 1996, if the producer provides evidence that the 
        producer did not increase marketings in calendar year 1995 or 
        1996 when compared to calendar year 1994 or 1995, respectively.
            (2) Exception.--This subsection shall not apply with respect 
        to a producer for a particular calendar year if the producer has 
        already received a refund under section 204(h) of the 
        Agricultural Act of 1949 for the same fiscal year before the 
        effective date of this section.

[[Page 110 STAT. 915]]

            (3) Treatment of refund.--A refund under this subsection 
        shall not be considered as any type of price support or payment 
        for purposes of sections 1211 and 1221 of the Food Security Act 
        of 1985 (16 U.S.C. 3811 and 3821).

    (f) Commodity Credit Corporation.--The Secretary shall carry out the 
program authorized by this section through the Commodity Credit 
Corporation.
    (g) <<NOTE: Effective date.>> Conforming Repeal.--Effective on the 
first day of the first month beginning after the date of enactment of 
this title, section 204 of the Agricultural Act of 1949 (7 U.S.C. 1446e) 
is repealed.

    (h) Period of Effectiveness.--This section (other than subsection 
(g)) shall be effective only during the period beginning on the first 
day of the first month beginning after the date of enactment of this 
title and ending on December 31, 1999. The program authorized by this 
section shall terminate on December 31, 1999, and shall be considered to 
have expired notwithstanding section 257 of the Balanced Budget and 
Emergency Deficit Control Act of 1985 (2 U.S.C. 907).

SEC. 142. <<NOTE: 7 USC 7252.>> RECOURSE LOAN PROGRAM FOR COMMERCIAL 
            PROCESSORS OF DAIRY PRODUCTS.

    (a) Recourse Loans Available.--Under such reasonable terms and 
conditions as the Secretary may prescribe, the Secretary shall make 
recourse loans available to commercial processors of eligible dairy 
products to assist the processors to manage inventories of eligible 
dairy products and assure a greater degree of price stability for the 
dairy industry during the year. The Secretary shall use the funds, 
facilities, and authorities of the Commodity Credit Corporation to carry 
out this section.
    (b) Amount of Loan.--The Secretary shall establish the amount of a 
loan for eligible dairy products, which shall reflect a milk equivalent 
value of $9.90 per hundredweight of milk containing 3.67 percent 
butterfat. The rate of interest charged participants under this section 
shall not be less than the rate of interest charged the Commodity Credit 
Corporation by the United States Treasury.
    (c) Period of Loan.--The original term of a recourse loan made under 
this section may not extend beyond the end of the fiscal year in which 
the loan is made. At the end of the fiscal year, the Secretary may 
extend the loan for an additional period not to exceed the end of the 
next fiscal year.
    (d) Definition of Eligible Dairy Products.--In this section, the 
term ``eligible dairy products'' means cheddar cheese, butter, and 
nonfat dry milk.
    (e) Effective Date.--This section shall be effective beginning 
January 1, 2000.

SEC. 143. <<NOTE: 7 USC 7253.>> CONSOLIDATION AND REFORM OF FEDERAL MILK 
            MARKETING ORDERS.

    (a) Amendment of Orders.--
            (1) Required consolidation.--The Secretary shall amend 
        Federal milk marketing orders issued under section 8c of the 
        Agricultural Adjustment Act (7 U.S.C. 608c), reenacted with 
        amendments by the Agricultural Marketing Agreement Act of 1937, 
        to limit the number of Federal milk marketing orders to not less 
        than 10 and not more than 14 orders.
            (2) Inclusion of california as separate order.--Upon the 
        petition and approval of California dairy producers in the

[[Page 110 STAT. 916]]

        manner provided in section 8c of the Agricultural Adjustment Act 
        (7 U.S.C. 608c), reenacted with amendments by the Agricultural 
        Marketing Agreement Act of 1937, the Secretary shall designate 
        the State of California as a separate Federal milk marketing 
        order. The order covering California shall have the right to 
        reblend and distribute order receipts to recognize quota value.
            (3) Related issues addressed in consolidation.--Among the 
        issues the Secretary is authorized to implement as part of the 
        consolidation of Federal milk marketing orders are the 
        following:
                    (A) The use of utilization rates and multiple basing 
                points for the pricing of fluid milk.
                    (B) The use of uniform multiple component pricing 
                when developing 1 or more basic formula prices for 
                manufacturing milk.
            (4) Effect of existing law.--In implementing the 
        consolidation of Federal milk marketing orders and related 
        reforms under this subsection, the Secretary may not consider, 
        or base any decision on, the table contained in section 8c(5)(A) 
        of the Agricultural Adjustment Act (7 U.S.C. 608c(5)(A)), 
        reenacted with amendments by the Agricultural Marketing 
        Agreement Act of 1937, as added by section 131 of the Food 
        Security Act of 1985.

    (b) Expedited Process.--
            (1) Use of informal rulemaking.--To implement the 
        consolidation of Federal milk marketing orders and related 
        reforms under subsection (a), the Secretary shall use the notice 
        and comment procedures provided in section 553 of title 5, 
        United States Code.
            (2) Time limitations.--
                    (A) Proposed amendments.--The Secretary shall 
                announce the proposed amendments to be made under 
                subsection (a) not later than 2 years after the date of 
                enactment of this title.
                    (B) Final amendments.--The Secretary shall implement 
                the amendments not later than 3 years after the date of 
                enactment of this title.
            (3) Effect of court order.--The actions authorized by this 
        subsection are intended to ensure the timely publication and 
        implementation of new and amended Federal milk marketing orders. 
        In the event that the Secretary is enjoined or otherwise 
        restrained by a court order from publishing or implementing the 
        consolidation and related reforms under subsection (a), the 
        length of time for which that injunction or other restraining 
        order is effective shall be added to the time limitations 
        specified in paragraph (2) thereby extending those time 
        limitations by a period of time equal to the period of time for 
        which the injunction or other restraining order is effective.

    (c) Failure To Timely Consolidate Orders.--If the Secretary fails to 
implement the consolidation required under subsection (a)(1) within the 
time period required under subsection (b)(2)(B) (plus any additional 
period provided under subsection (b)(3)), the Secretary may not assess 
or collect assessments from milk producers or handlers under such 
section 8c for marketing order administration and services provided 
under such section after the end of

[[Page 110 STAT. 917]]

that period until the consolidation is completed. The Secretary may not 
reduce the level of services provided under the section on account of 
the prohibition against assessments, but shall rather cover the cost of 
marketing order administration and services through funds available for 
the Agricultural Marketing Service of the Department.
    (d) Report Regarding Further Reforms.--
            (1) Report required.--Not later than April 1, 1997, the 
        Secretary shall submit to Congress a report--
                    (A) reviewing the Federal milk marketing order 
                system established pursuant to section 8c of the 
                Agricultural Adjustment Act (7 U.S.C. 608c), reenacted 
                with amendments by the Agricultural Marketing Agreement 
                Act of 1937, in light of the reforms required by 
                subsection (a);
                    (B) describing the efforts underway and the progress 
                made in implementing the reforms required by subsection 
                (a); and
                    (C) containing such recommendations as the Secretary 
                considers appropriate for further improvements and 
                reforms to the Federal milk marketing order system.
            (2) Effect of other laws.--Any limitation imposed by Act of 
        Congress on the conduct or completion of reports to Congress 
        shall not apply to the report required under this section, 
        unless the limitation specifically refers to this section.

SEC. 144. <<NOTE: 7 USC 7254.>> EFFECT ON FLUID MILK STANDARDS IN STATE 
            OF CALIFORNIA.

    Nothing in this Act or any other provision of law shall be construed 
to preempt, prohibit, or otherwise limit the authority of the State of 
California, directly or indirectly, to establish or continue to effect 
any law, regulation, or requirement regarding--
            (1) the percentage of milk solids or solids not fat in fluid 
        milk products sold at retail or marketed in the State of 
        California; or
            (2) the labeling of such fluid milk products with regard to 
        milk solids or solids not fat.

SEC. 145. <<NOTE: 7 USC 7255.>> MILK MANUFACTURING MARKETING ADJUSTMENT.

    (a) Maximum Allowances Established.--No State shall provide for a 
manufacturing allowance for the processing of milk in excess of--
            (1) $1.65 per hundredweight of milk for milk manufactured 
        into butter and nonfat dry milk; and
            (2) $1.80 per hundredweight of milk for milk manufactured 
        into cheese.

    (b) Manufacturing Allowance Defined.--In this section, the term 
``manufacturing allowance'' means--
            (1) the amount by which the product price value of butter 
        and nonfat dry milk manufactured from a hundred pounds of milk 
        containing 3.5 pounds of butterfat and 8.7 pounds of milk solids 
        not fat resulting from a State's yield and product price 
        formulas exceeds the class price for the milk used to produce 
        those products; or
            (2) the amount by which the product price value of cheese 
        manufactured from a hundred pounds of milk containing 3.5 pounds 
        of butterfat and 8.7 pounds of milk solids not fat resulting 
        from a State's yield and product price formulas exceeds the 
        class price for the milk used to produce cheese.

[[Page 110 STAT. 918]]

    (c) Effect of Violation.--If the Secretary determines following a 
hearing that a State has in effect a manufacturing allowance that 
exceeds the manufacturing allowance authorized in subsection (a), the 
Secretary shall suspend purchases of cheddar cheese, butter, and nonfat 
dry milk produced in that State until such time as the State complies 
with such subsection.
    (d) Effective Date; Implementation.--This section (other than 
subsection (e)) shall be effective during the period beginning on the 
first day of the first month beginning after the date of enactment of 
this title and ending on December 31, 1999. During that period, the 
Secretary may exercise the authority provided to the Secretary under 
this section without regard to the issuance of regulations intended to 
carry out this section.
    (e) <<NOTE: Effective date.>> Conforming Repeal.--Effective on the 
first day of the first month beginning after the date of enactment of 
this title, section 102 of the Food, Agriculture, Conservation, and 
Trade Act of 1990 (7 U.S.C. 1446e-1) is repealed.

SEC. 146. PROMOTION.

    (a) Congressional Purpose.--Section 1999B(a) of the Fluid Milk 
Promotion Act of 1990 (7 U.S.C. 6401(a)) is amended--
            (1) by redesignating paragraphs (6), (7) and (8) as 
        paragraphs (7), (8) and (9), respectively; and
            (2) by inserting after paragraph (5) the following:
            ``(6) the congressional purpose underlying this subtitle is 
        to maintain and expand markets for fluid milk products, not to 
        maintain or expand any processor's share of those markets and 
        that the subtitle does not prohibit or restrict individual 
        advertising or promotion of fluid milk products since the 
        programs created and funded by this subtitle are not extended to 
        replace individual advertising and promotion efforts;''.

    (b) Congressional Policy.--Section 1999B(b) of the Fluid Milk 
Promotion Act of 1990 (7 U.S.C. 6401(b)) is amended to read as follows:
    ``(b) Policy.--It is declared to be the policy of Congress that it 
is in the public interest to authorize the establishment, through the 
exercise of powers provided in this subtitle, of an orderly procedure 
for developing, financing, through adequate assessments on fluid milk 
products produced in the United States and carrying out an effective, 
continuous, and coordinated program of promotion, research, and consumer 
information designed to strengthen the position of the dairy industry in 
the marketplace and maintain and expand domestic and foreign markets and 
uses for fluid milk products, the purpose of which is not to compete 
with or replace individual advertising or promotion efforts designed to 
promote individual brand name or trade name fluid milk products, but 
rather to maintain and expand the markets for all fluid milk products, 
with the goal and purpose of this subtitle being a national governmental 
goal that authorizes and funds programs that result in government speech 
promoting government objectives.''.
    (c) Research.--Section 1999C(6) of the Fluid Milk Promotion Act of 
1990 (7 U.S.C. 6402(6)) is amended to read as follows:
            ``(6) Research.--The term `research' means market research 
        to support advertising and promotion efforts, including 
        educational activities, research directed to product 
        characteristics, product development, including new products or 
        improved

[[Page 110 STAT. 919]]

        technology in production, manufacturing or processing of milk 
        and the products of milk.''.

    (d) Voting.--
            (1) Initial referenda.--Section 1999N(b)(2) of the Fluid 
        Milk Promotion Act of 1990 (7 U.S.C. 6413(b)(2)) is amended by 
        striking ``all processors'' and inserting ``fluid milk 
        processors voting in the referendum''.
            (2) Suspension or termination.--Section 1999O(c) of such Act 
        (7 U.S.C. 6414(c)) is amended--
                    (A) in paragraph (1), by striking ``all processors'' 
                and inserting ``fluid milk processors voting in the 
                preceding referendum''; and
                    (B) in paragraph (2)(B), by striking ``all 
                processors'' and inserting ``fluid milk processors 
                voting in the referendum''.

    (e) Duration.--Section 1999O(a) of the Fluid Milk Promotion Act of 
1990 (7 U.S.C. 6414(a)) is amended by striking ``1996'' and inserting 
``2002''.

SEC. 147. <<NOTE: Congress. State listing. 7 USC 7256.>> NORTHEAST 
            INTERSTATE DAIRY COMPACT.

    Congress hereby consents to the Northeast Interstate Dairy Compact 
entered into among the States of Connecticut, Maine, Massachusetts, New 
Hampshire, Rhode Island and Vermont as specified in section 1(b) Senate 
Joint Resolution 28 of the 104th Congress, as placed on the calendar of 
the Senate, subject to the following conditions:
            (1) Finding of compelling public interest.--Based upon a 
        finding by the Secretary of a compelling public interest in the 
        Compact region, the Secretary may grant the States that have 
        ratified the Northeast Interstate Dairy Compact, as of the date 
        of enactment of this title, the authority to implement the 
        Northeast Interstate Dairy Compact.
            (2) Limitation on manufacturing price.--The Northeast 
        Interstate Dairy Compact Commission shall not regulate Class II, 
        Class III, or Class III-A milk used for manufacturing purposes 
        or any other milk, other than Class I (fluid) milk, as defined 
        by a Federal milk marketing order issued under section 8c of the 
        Agricultural Adjustment Act (7 U.S.C. 608c) reenacted with 
        amendments by the Agricultural Marketing Agreement Act of 1937.
            (3) Duration.--Consent for the Northeast Interstate Dairy 
        Compact shall terminate concurrent with the Secretary's 
        implementation of the dairy pricing and Federal milk marketing 
        order consolidation and reforms under section 143.
            (4) Additional states.--Delaware, New Jersey, New York, 
        Pennsylvania, Maryland, and Virginia are the only additional 
        States that may join the Northeast Interstate Dairy Compact, 
        individually or otherwise, if upon entry the State is contiguous 
        to a participating State and if Congress consents to the entry 
        of the State into the Compact after the date of enactment of 
        this title.
            (5) Compensation of commodity credit corporation.--Before 
        the end of each fiscal year that a Compact price regulation is 
        in effect, the Northeast Interstate Dairy Compact Commission 
        shall compensate the Commodity Credit Corporation for the cost 
        of any purchases of milk and milk products by the Corporation 
        that result from the projected rate of

[[Page 110 STAT. 920]]

        increase in milk production for the fiscal year within the 
        Compact region in excess of the projected national average rate 
        of the increase in milk production, as determined by the 
        Secretary.
            (6) Milk marketing order administrator.--At the request of 
        the Northeast Interstate Dairy Compact Commission, the 
        Administrator of the applicable Federal milk marketing order 
        issued under section 8(c)5 of the Agricultural Adjustment Act (7 
        U.S.C. 608c), reenacted with amendments by the Agricultural 
        Marketing Agreement Act of 1937, shall provide technical 
        assistance to the Compact Commission and be compensated for that 
        assistance.
            (7) Further conditions.--The Northeast Interstate Dairy 
        Compact Commission shall not prohibit or in any way limit the 
        marketing in the Compact region of any milk or milk product 
        produced in any other production area in the United States. The 
        Compact Commission shall respect and abide by the ongoing 
        procedures between Federal milk marketing orders with respect to 
        the sharing of proceeds from sales within the Compact region of 
        bulk milk, packaged milk, or producer milk originating from 
        outside of the Compact region. The Compact Commission shall not 
        use compensatory payments under section 10(6) of the Compact as 
        a barrier to the entry of milk into the Compact region or for 
        any other purpose. Establishment of a Compact over-order price, 
        in itself, shall not be considered a compensatory payment or a 
        limitation or prohibition on the marketing of milk.

SEC. 148. DAIRY EXPORT INCENTIVE PROGRAM.

    (a) Duration.--Section 153(a) of the Food Security Act of 1985 (15 
U.S.C. 713a-14(a)) is amended by striking ``2001'' and inserting 
``2002''.
    (b) Sole Discretion.--Section 153(b) of the Food Security Act of 
1985 (15 U.S.C. 713a-14(b)) is amended by inserting ``sole'' before 
``discretion''.
    (c) Elements of Program.--Section 153(c) of the Food Security Act of 
1985 (15 U.S.C. 713a-14(c)) is amended--
            (1) by striking ``and'' at the end of paragraph (1);
            (2) by striking the period at the end of paragraph (2) and 
        inserting a semicolon; and
            (3) by adding at the end the following:
            ``(3) the maximum volume of dairy product exports allowable 
        consistent with the obligations of the United States as a member 
        of the World Trade Organization is exported under the program 
        each year (minus the volume sold under section 1163 of the Food 
        Security Act of 1985 (Public Law 99-198; 7 U.S.C. 1731 note) 
        during that year), except to the extent that the export of such 
        a volume under the program would, in the judgment of the 
        Secretary, exceed the limitations on the value set forth in 
        subsection (f); and
            ``(4) payments may be made under the program for exports to 
        any destination in the world for the purpose of market 
        development, except a destination in a country with respect to 
        which shipments from the United States are otherwise restricted 
        by law.''.

    (d) Market Development.--Section 153(e)(1) of the Food Security Act 
of 1985 (15 U.S.C. 713a-14(e)(1)) is amended--

[[Page 110 STAT. 921]]

            (1) by striking ``and'' and inserting ``the''; and
            (2) by inserting before the period the following: ``, and 
        any additional amount that may be required to assist in the 
        development of world markets for United States dairy products''.

    (e) Maximum Allowable Amounts.--Section 153 of the Food Security Act 
of 1985 (15 U.S.C. 713a-14) is amended by adding at the end the 
following:
    ``(f) Required Funding.--
            ``(1) In general.--Except as provided in paragraph (2), the 
        Commodity Credit Corporation shall in each year use money and 
        commodities for the program under this section in the maximum 
        amount consistent with the obligations of the United States as a 
        member of the World Trade Organization, minus the amount 
        expended under section 1163 of the Food Security Act of 1985 
        (Public Law 99-198; 7 U.S.C. 1731 note) during that year.
            ``(2) Volume limitations.--The Commodity Credit Corporation 
        may not exceed the limitations specified in subsection (c)(3) on 
        the volume of allowable dairy product exports.''.

SEC. 149. <<NOTE: 7 USC 7257.>> AUTHORITY TO ASSIST IN ESTABLISHMENT AND 
            MAINTENANCE OF ONE OR MORE EXPORT TRADING COMPANIES.

    The Secretary of Agriculture shall, consistent with the obligations 
of the United States as a member of the World Trade Organization, 
provide such advice and assistance to the United States dairy industry 
as may be necessary to enable that industry to establish and maintain 
one or more export trading companies under the Export Trading Company 
Act of 1982 (15 U.S.C. 4001 et seq.) for the purpose of facilitating the 
international market development for and exportation of dairy products 
produced in the United States.

SEC. 150. <<NOTE: 7 USC 7258.>> STANDBY AUTHORITY TO INDICATE ENTITY 
            BEST SUITED TO PROVIDE INTERNATIONAL MARKET DEVELOPMENT AND 
            EXPORT SERVICES.

    (a) Indication of Entity Best Suited To Assist International Market 
Development for and Export of United States Dairy Products.--The 
Secretary of Agriculture shall indicate which entity or entities 
autonomous of the Government of the United States, which seeks such a 
designation, is best suited to facilitate the international market 
development for and exportation of United States dairy products, if the 
Secretary determines that--
            (1) the United States dairy industry has not established an 
        export trading company under the Export Trading Company Act of 
        1982 (15 U.S.C. 4001 et seq.) for the purpose of facilitating 
        the international market development for an exportation of dairy 
        products produced in the United States on or before June 30, 
        1997; or
            (2) the quantity of exports of United States dairy products 
        during the 12-month period preceding July 1, 1998 does not 
        exceed the quantity of exports of United States dairy products 
        during the 12-month period preceding July 1, 1997 by 1.5 billion 
        pounds (milk equivalent, total solids basis).

    (b) Funding of Export Activities.--The Secretary shall assist the 
entity or entities identified under subsection (a) in identifying

[[Page 110 STAT. 922]]

sources of funding for the activities specified in subsection (a) from 
within the dairy industry and elsewhere.
    (c) Application of Section.--This section shall apply only during 
the period beginning on July 1, 1997 and ending on September 30, 2000.

SEC. 151. <<NOTE: 7 USC 7259.>> STUDY AND REPORT REGARDING POTENTIAL 
            IMPACT OF URUGUAY ROUND ON PRICES, INCOME, AND GOVERNMENT 
            PURCHASES.

    (a) Study.--The Secretary of Agriculture shall conduct a study, on a 
variety by variety of cheese basis, to determine the potential impact on 
milk prices in the United States, dairy producer income, and Federal 
dairy program costs, of the allocation of additional cheese granted 
access to the United States as a result of the obligations of the United 
States as a member of the World Trade Organization.
    (b) Report.--Not later than June 30, 1997, the Secretary shall 
report to the Committee on Agriculture, Nutrition, and Forestry of the 
Senate and the Committee on Agriculture of the House of Representatives 
the results of the study conducted under this section.
    (c) Rule of Construction.--Any limitation imposed by Act of Congress 
on the conduct or completion of studies or reports to Congress shall not 
apply to the study and report required under this section, unless the 
limitation specifically refers to this section.

SEC. 152. PROMOTION OF UNITED STATES DAIRY PRODUCTS IN INTERNATIONAL 
            MARKETS THROUGH DAIRY PROMOTION PROGRAM.

    Section 113(e) of the Dairy Production Stabilization Act of 1983 (7 
U.S.C. 4504(e)) is amended by adding at the end the following new 
sentence: ``For each of fiscal years 1997 through 2001, the Board's 
budget may provide for the expenditure of revenues available to the 
Board to develop international markets for, and to promote within such 
markets, the consumption of dairy products produced in the United States 
from milk produced in the United States.''.

                      CHAPTER 2--PEANUTS AND SUGAR

SEC. 155. <<NOTE: 7 USC 7271.>> PEANUT PROGRAM.

    (a) Quota Peanuts.--
            (1) Availability of loans.--The Secretary shall make 
        nonrecourse loans available to producers of quota peanuts.
            (2) Loan rate.--The national average quota loan rate for 
        quota peanuts shall be $610 per ton.
            (3) Inspection, handling, or storage.--The loan amount may 
        not be reduced by the Secretary by any deductions for 
        inspection, handling, or storage.
            (4) Location and other factors.--The Secretary may make 
        adjustments in the loan rate for quota peanuts for location of 
        peanuts and such other factors as are authorized by section 162.
            (5) Offers from handlers.--If a producer markets a quota 
        peanut crop, meeting quality requirements for domestic edible 
        use, through the marketing association loan for two consecutive 
        marketing years and the Secretary determines that a handler 
        provided the producer with a written offer, upon delivery, for

[[Page 110 STAT. 923]]

        the purchase of the quota peanut crops at a price equal to or in 
        excess of the quota support price, the producer shall be 
        ineligible for quota price support for the next marketing year. 
        The Secretary shall establish the method by which a producer may 
        appeal a determination under this paragraph regarding 
        ineligibility for quota price support.

    (b) Additional Peanuts.--
            (1) In general.--Subject to paragraph (2), the Secretary 
        shall make nonrecourse loans available to producers of 
        additional peanuts at such rates as the Secretary finds 
        appropriate, taking into consideration the demand for peanut oil 
        and peanut meal, expected prices of other vegetable oils and 
        protein meals, and the demand for peanuts in foreign markets.
            (2) Limitation.--The Secretary shall establish the support 
        rate on additional peanuts at a level estimated by the Secretary 
        to ensure that there are no losses to the Commodity Credit 
        Corporation on the sale or disposal of the peanuts.
            (3) Announcement.--The Secretary shall announce the loan 
        rate for additional peanuts of each crop not later than February 
        15 preceding the marketing year for the crop for which the loan 
        rate is being determined.

    (c) Area Marketing Associations.--
            (1) Warehouse storage loans.--
                    (A) In general.--In carrying out subsections (a) and 
                (b), the Secretary shall make warehouse storage loans 
                available in each of the producing areas (described in 
                section 1446.95 of title 7 of the Code of Federal 
                Regulations (January 1, 1989)) to a designated area 
                marketing association of peanut producers that is 
                selected and approved by the Secretary and that is 
                operated primarily for the purpose of conducting the 
                loan activities. The Secretary may not make warehouse 
                storage loans available to any cooperative that is 
                engaged in operations or activities concerning peanuts 
                other than those operations and activities specified in 
                this section and section 358e of the Agricultural 
                Adjustment Act of 1938 (7 U.S.C. 1359a).
                    (B) Administrative and supervisory activities.--An 
                area marketing association shall be used in 
                administrative and supervisory activities relating to 
                loans and marketing activities under this section and 
                section 358e of the Agricultural Adjustment Act of 1938 
                (7 U.S.C. 1359a).
                    (C) Association costs.--Loans made to the 
                association under this paragraph shall include such 
                costs as the area marketing association reasonably may 
                incur in carrying out the responsibilities, operations, 
                and activities of the association under this section and 
                section 358e of the Agricultural Adjustment Act of 1938 
                (7 U.S.C. 1359a).
            (2) Pools for quota and additional peanuts.--
                    (A) <<NOTE: Records. New Mexico.>> In general.--The 
                Secretary shall require that each area marketing 
                association establish pools and maintain complete and 
                accurate records by area and segregation for quota 
                peanuts handled under loan and for additional peanuts 
                placed under loan, except that separate pools shall be 
                established for Valencia peanuts produced in New Mexico.
                    (B) Eligibility to participate in new mexico 
                pools.--

[[Page 110 STAT. 924]]

                          (i) In general.--Except as provided in clause 
                      (ii), in the case of the 1996 and subsequent 
                      crops, Valencia peanuts not physically produced in 
                      the State of New Mexico shall not be eligible to 
                      participate in the pools of the State.
                          (ii) Exception.--A producer of Valencia 
                      peanuts may enter Valencia peanuts that are 
                      produced in Texas into the pools of New Mexico in 
                      a quantity not greater than the average annual 
                      quantity of the peanuts that the producer entered 
                      into the New Mexico pools for the 1990 through 
                      1995 crops.
                    (C) Types of peanuts.--Bright hull and dark hull 
                Valencia peanuts shall be considered as separate types 
                for the purpose of establishing the pools.
                    (D) Net gains.--Net gains on peanuts in each pool, 
                unless otherwise approved by the Secretary, shall be 
                distributed only to producers who placed peanuts in the 
                pool and shall be distributed in proportion to the value 
                of the peanuts placed in the pool by each producer. Net 
                gains for peanuts in each pool shall consist of the 
                following:
                          (i) Quota peanuts.--For quota peanuts, the net 
                      gains over and above the loan indebtedness and 
                      other costs or losses incurred on peanuts placed 
                      in the pool.
                          (ii) Additional peanuts.--For additional 
                      peanuts, the net gains over and above the loan 
                      indebtedness and other costs or losses incurred on 
                      peanuts placed in the pool for additional peanuts.

    (d) Losses.--Losses in quota area pools shall be covered using the 
following sources in the following order of priority:
            (1) Transfers from additional loan pools.--The proceeds due 
        any producer from any pool shall be reduced by the amount of any 
        loss that is incurred with respect to peanuts transferred from 
        an additional loan pool to a quota loan pool by the producer 
        under section 358-1(b)(8) of the Agricultural Adjustment Act of 
        1938 (7 U.S.C. 1358-1(b)(8)).
            (2) Producers in same pool.--Further losses in an area quota 
        pool shall be offset by reducing the gain of any producer in the 
        pool by the amount of pool gains attributed to the same producer 
        from the sale of additional peanuts for domestic and edible 
        export use.
            (3) Offset within area.--Further losses in an area quota 
        pool shall be offset by any gains or profits from additional 
        peanuts (other than separate type pools established under 
        subsection (c)(2)(A) for Valencia peanuts produced in New 
        Mexico) owned or controlled by the Commodity Credit Corporation 
        in that area and sold for domestic edible use, in accordance 
        with regulations issued by the Secretary. This paragraph shall 
        not apply to profits or gains from a farm with 1 acre or less of 
        peanut production.
            (4) First use of marketing assessments.--The Secretary shall 
        use funds collected under subsection (g) (except funds 
        attributable to handlers) to offset further losses in area quota 
        pools. The Secretary shall transfer to the Treasury those funds 
        collected under subsection (g) and available for use under this 
        paragraph that the Secretary determines are not required to 
        cover losses in area quota pools.

[[Page 110 STAT. 925]]

            (5) <<NOTE: Regulations.>> Cross compliance.--Further losses 
        in area quota pools, other than losses incurred as a result of 
        transfers from additional loan pools to quota loan pools under 
        section 358-1(b)(8) of the Agricultural Adjustment Act of 1938 
        (7 U.S.C. 1358-1(b)(8)), shall be offset by any gains or profits 
        from quota pools in other production areas (other than separate 
        type pools established under subsection (c)(2)(A) for Valencia 
        peanuts produced in New Mexico) in such manner as the Secretary 
        shall by regulation prescribe.
            (6) Offset generally.--If losses in an area quota pool have 
        not been entirely offset under the preceding paragraphs, further 
        losses shall be offset by any gains or profits from additional 
        peanuts (other than separate type pools established under 
        subsection (c)(2)(A) for Valencia peanuts produced in New 
        Mexico) owned or controlled by the Commodity Credit Corporation 
        and sold for domestic edible use, in accordance with regulations 
        issued by the Secretary. This paragraph shall not apply to 
        profits or gains from a farm with 1 acre or less of peanut 
        production.
            (7) Second use of marketing assessments.--The Secretary 
        shall use funds collected under subsection (g) and attributable 
        to handlers to offset further losses in area quota pools. The 
        Secretary shall transfer to the Treasury those funds collected 
        under subsection (g) and available for use under this paragraph 
        that the Secretary determines are not required to cover losses 
        in area quota pools.
            (8) Increased assessments.--If use of the authorities 
        provided in the preceding paragraphs is not sufficient to cover 
        losses in an area quota pool, the Secretary shall increase the 
        marketing assessment for producers established under subsection 
        (g) by such an amount as the Secretary considers necessary to 
        cover the losses. The increased assessment shall apply only to 
        quota peanuts in the production area covered by the pool. 
        Amounts collected under subsection (g) as a result of the 
        increased assessment shall be retained by the Secretary to cover 
        losses in that pool.

    (e) Disapproval of Quotas.--Notwithstanding any other provision of 
law, no loan for quota peanuts may be made available by the Secretary 
for any crop of peanuts with respect to which poundage quotas have been 
disapproved by producers, as provided for in section 358-1(d) of the 
Agricultural Adjustment Act of 1938 (7 U.S.C. 1358-1(d)).
    (f) Quality Improvement.--
            (1) In general.--With respect to peanuts under loan, the 
        Secretary shall--
                    (A) promote the crushing of peanuts at a greater 
                risk of deterioration before peanuts of a lesser risk of 
                deterioration;
                    (B) ensure that all Commodity Credit Corporation 
                inventories of peanuts sold for domestic edible use must 
                be shown to have been officially inspected by licensed 
                Department inspectors both as farmer stock and shelled 
                or cleaned in-shell peanuts;
                    (C) continue to endeavor to operate the peanut 
                program so as to improve the quality of domestic peanuts 
                and ensure the coordination of activities under the 
                Peanut Administrative Committee established under 
                Marketing Agreement

[[Page 110 STAT. 926]]

                No. 146, regulating the quality of domestically produced 
                peanuts (under the Agricultural Adjustment Act (7 U.S.C. 
                601 et seq.), reenacted with amendments by the 
                Agricultural Marketing Agreement Act of 1937); and
                    (D) ensure that any changes made in the peanut 
                program as a result of this subsection requiring 
                additional production or handling at the farm level 
                shall be reflected as an upward adjustment in the 
                Department loan schedule.
            (2) Exports and other peanuts.--The Secretary shall require 
        that all peanuts in the domestic and export markets fully comply 
        with all quality standards under Marketing Agreement No. 146.

    (g) Marketing Assessment.--
            (1) In general.--The Secretary shall provide for a 
        nonrefundable marketing assessment. The assessment shall be made 
        on a per pound basis in an amount equal to 1.1 percent for each 
        of the 1994 and 1995 crops, 1.15 percent for the 1996 crop, and 
        1.2 percent for each of the 1997 through 2002 crops, of the 
        national average quota or additional peanut loan rate for the 
        applicable crop.
            (2) First purchasers.--
                    (A) In general.--Except as provided under paragraphs 
                (3) and (4), the first purchaser of peanuts shall--
                          (i) collect from the producer a marketing 
                      assessment equal to the quantity of peanuts 
                      acquired multiplied by--
                                    (I) in the case of each of the 1994 
                                and 1995 crops, .55 percent of the 
                                applicable national average loan rate;
                                    (II) in the case of the 1996 crop, 
                                .6 percent of the applicable national 
                                average loan rate; and
                                    (III) in the case of each of the 
                                1997 through 2002 crops, .65 percent of 
                                the applicable national average loan 
                                rate;
                          (ii) pay, in addition to the amount collected 
                      under clause (i), a marketing assessment in an 
                      amount equal to the quantity of peanuts acquired 
                      multiplied by .55 percent of the applicable 
                      national average loan rate; and
                          (iii) remit the amounts required under clauses 
                      (i) and (ii) to the Commodity Credit Corporation 
                      in a manner specified by the Secretary.
                    (B) Definition of first purchaser.--In this 
                subsection, the term ``first purchaser'' means a person 
                acquiring peanuts from a producer except that in the 
                case of peanuts forfeited by a producer to the Commodity 
                Credit Corporation, the term means the person acquiring 
                the peanuts from the Commodity Credit Corporation.
            (3) Other private marketings.--In the case of a private 
        marketing by a producer directly to a consumer through a retail 
        or wholesale outlet or in the case of a marketing by the 
        producer outside of the continental United States, the producer 
        shall be responsible for the full amount of the assessment and 
        shall remit the assessment by such time as is specified by the 
        Secretary.
            (4) Loan peanuts.--In the case of peanuts that are pledged 
        as collateral for a loan made under this section, the producer

[[Page 110 STAT. 927]]

        portion of the assessment shall be deducted from the proceeds of 
        the loan. The remainder of the assessment shall be paid by the 
        first purchaser of the peanuts. For purposes of computing net 
        gains on peanuts under this section, the reduction in loan 
        proceeds shall be treated as having been paid to the producer.
            (5) Penalties.--If any person fails to collect or remit the 
        reduction required by this subsection or fails to comply with 
        the requirements for recordkeeping or otherwise as are required 
        by the Secretary to carry out this subsection, the person shall 
        be liable to the Secretary for a civil penalty up to an amount 
        determined by multiplying--
                    (A) the quantity of peanuts involved in the 
                violation; by
                    (B) the national average quota peanut rate for the 
                applicable crop year.
            (6) Enforcement.--The Secretary may enforce this subsection 
        in the courts of the United States.

    (h) <<NOTE: Effective date.>> Crops.--Subsections (a) through (g) 
shall be effective only for the 1996 through 2002 crops of peanuts.

    (i) Poundage Quotas.--
            (1) In general.--Part VI of subtitle B of title III of the 
        Agricultural Adjustment Act of 1938 is amended--
                    (A) in section 358-1 (7 U.S.C. 1358-1)--
                          (i) in the section heading, by striking ``1991 
                      through 1997 crops of'';
                          (ii) in subsections (a)(1), (b)(1)(B), 
                      (b)(2)(A), (b)(2)(C), and (b)(3)(A), by striking 
                      ``of the 1991 through 1997 marketing years'' each 
                      place it appears and inserting ``marketing year'';
                          (iii) in subsection (a)(3), by striking 
                      ``1990'' and inserting ``1990, for the 1991 
                      through 1995 marketing years, and 1995, for the 
                      1996 through 2002 marketing years'';
                          (iv) in subsection (b)(1)(A)--
                                    (I) by striking ``each of the 1991 
                                through 1997 marketing years'' and 
                                inserting ``each marketing year''; and
                                    (II) in clause (i), by inserting 
                                before the semicolon the following: ``, 
                                in the case of the 1991 through 1995 
                                marketing years, and the 1995 marketing 
                                year, in the case of the 1996 through 
                                2002 marketing years'';
                          (v) in subsection (b)(1), by adding at the end 
                      the following:
                    ``(D) <<NOTE: Effective date.>> Certain farms 
                ineligible for quota.--Effective beginning with the 1998 
                crop, the Secretary shall not establish a farm poundage 
                quota under subparagraph (A) for a farm owned or 
                controlled by--
                          ``(i) a municipality, airport authority, 
                      school, college, refuge, or other public entity 
                      (other than a university used for research 
                      purposes); or
                          ``(ii) a person who is not a producer and 
                      resides in another State.'';
                          (vi) in subsection (b)(2), by adding at the 
                      end the following:
                    ``(E) Transfer of quota from ineligible farms.--Any 
                farm poundage quota held at the end of the 1996

[[Page 110 STAT. 928]]

                marketing year by a farm described in paragraph (1)(D) 
                shall be allocated to other farms in the same State on 
                such basis as the Secretary may by regulation 
                prescribe.''; and
                          (vii) in subsection (f), by striking ``1997'' 
                      and inserting ``2002'';
                    (B) in section 358b (7 U.S.C. 1358b)--
                          (i) in the section heading, by striking ``1991 
                      through 1995 crops of''; and
                          (ii) in subsection (c), by striking ``1995'' 
                      and inserting ``2002'';
                    (C) in section 358c(d) (7 U.S.C. 1358c(d)), by 
                striking ``1995'' and inserting ``2002''; and
                    (D) in section 358e (7 U.S.C. 1359a)--
                          (i) in the section heading, by striking ``for 
                      1991 through 1997 crops of peanuts''; and
                          (ii) in subsection (i), by striking ``1997'' 
                      and inserting ``2002''.
            (2) Elimination of quota floor.--Section 358-1(a)(1) of the 
        Agricultural Adjustment Act of 1938 (7 U.S.C. 1358-1(a)(1)) is 
        amended by striking the second sentence.
            (3) Temporary quota allocation.--Section 358-1 of the 
        Agricultural Adjustment Act of 1938 (7 U.S.C. 1358-1) is 
        amended--
                    (A) in subsection (a)(1), by striking ``domestic 
                edible, seed,'' and inserting ``domestic edible use 
                (except seed)''; and
                    (B) in subsection (b)(2)--
                          (i) in subparagraph (A), by striking 
                      ``subparagraph (B) and subject to''; and
                          (ii) by striking subparagraph (B) and 
                      inserting the following:
                    ``(B) Temporary quota allocation.--
                          ``(i) Allocation related to seed peanuts.--
                      Temporary allocation of quota pounds for the 
                      marketing year only in which the crop is planted 
                      shall be made to producers for each of the 1996 
                      through 2002 marketing years as provided in this 
                      subparagraph.
                          ``(ii) Quantity.--The temporary quota 
                      allocation shall be equal to the pounds of seed 
                      peanuts planted on the farm, as may be adjusted 
                      and determined under regulations prescribed by the 
                      Secretary.
                          ``(iii) Additional quota.--The temporary 
                      allocation of quota pounds under this paragraph 
                      shall be in addition to the farm poundage quota 
                      otherwise established under this subsection and 
                      shall be credited, for the applicable marketing 
                      year only, in total, to the producer of the 
                      peanuts on the farm in a manner prescribed by the 
                      Secretary.
                          ``(iv) Effect of other requirements.--Nothing 
                      in this section alters or changes the requirements 
                      regarding the use of quota and additional peanuts 
                      established by section 358e(b).''.
            (4) Undermarketings.--Part VI of subtitle B of title III of 
        the Agricultural Adjustment Act of 1938 is amended--
                    (A) in section 358-1(b) (7 U.S.C. 1358-1(b))--

[[Page 110 STAT. 929]]

                          (i) in paragraph (1)(B), by striking ``includ-
                      ing--'' and clauses (i) and (ii) and inserting 
                      ``including any increases resulting from the 
                      allocation of quotas voluntarily released for 1 
                      year under paragraph (7).'';
                          (ii) in paragraph (3)(B), by striking 
                      ``include--'' and clauses (i) and (ii) and 
                      inserting ``include any increase resulting from 
                      the allocation of quotas voluntarily released for 
                      1 year under paragraph (7).''; and
                          (iii) by striking paragraphs (8) and (9); and
                    (B) in section 358b(a) (7 U.S.C. 1358b(a))--
                          (i) in paragraph (2), by striking ``(including 
                      any applicable under marketings)''; and
                          (ii) in paragraph (3), by striking 
                      ``(including any applicable undermarketings)''.
            (5) Disaster transfers.--Section 358-1(b) of the 
        Agricultural Adjustment Act of 1938 (7 U.S.C. 1358-1(b)), as 
        amended by paragraph (4)(A)(iii), is amended by adding at the 
        end the following:
            ``(8) Disaster transfers.--
                    ``(A) <<NOTE: Regulations.>> In general.--Except as 
                provided in subparagraph (B), additional peanuts 
                produced on a farm from which the quota poundage was not 
                harvested and marketed because of drought, flood, or any 
                other natural disaster, or any other condition beyond 
                the control of the producer, may be transferred to the 
                quota loan pool for pricing purposes on such basis as 
                the Secretary shall by regulation provide.
                    ``(B) Limitation.--The poundage of peanuts 
                transferred under subparagraph (A) shall not exceed the 
                difference between--
                          ``(i) the total quantity of peanuts meeting 
                      quality requirements for domestic edible use, as 
                      determined by the Secretary, marketed from the 
                      farm; and
                          ``(ii) the total farm poundage quota, 
                      excluding quota pounds transferred to the farm in 
                      the fall.
                    ``(C) Support rate.--Peanuts transferred under this 
                paragraph shall be supported at 70 percent of the quota 
                support rate for the marketing years in which the 
                transfers occur. The transfers for a farm shall not 
                exceed 25 percent of the total farm quota pounds, 
                excluding pounds transferred in the fall.''.
            (6) Sale or lease.--Section 358b(a) of the Agricultural 
        Adjustment Act of 1938 (7 U.S.C. 1358b(a)) is amended--
                    (A) by striking paragraph (1) and inserting the 
                following:
            ``(1) Sale and lease authority.--
                    ``(A) Sale or lease within same state.--Subject to 
                subparagraph (B) and such terms and conditions as the 
                Secretary may prescribe, the owner, or operator with the 
                permission of the owner, of a farm in a State for which 
                a farm poundage quota has been established may sell or 
                lease all or any part of the poundage quota to any other 
                owner or operator of a farm within the same State for 
                transfer to the farm. However, any such lease of 
                poundage quota may be entered into in the fall or after 
                the normal planting season--

[[Page 110 STAT. 930]]

                          ``(i) if not less than 90 percent of the basic 
                      quota (the farm quota and temporary quota 
                      transfers), plus any poundage quota transferred to 
                      the farm under this subsection, has been planted 
                      or considered planted on the farm from which the 
                      quota is to be leased; and
                          ``(ii) under such terms and conditions as the 
                      Secretary may by regulation prescribe.
                ``In the case of a fall transfer or a transfer after the 
                normal planting season by a cash lessee, the landowner 
                shall not be required to sign the transfer 
                authorization. A fall transfer or a transfer after the 
                normal planting season may be made not later than 72 
                hours after the peanuts that are the subject of the 
                transfer are inspected and graded.
                    ``(B) Percentage limitations on spring transfers.--
                Spring transfers under subparagraph (A) by sale or lease 
                of a quota for farms in a county to any owner or 
                operator of a farm outside the county within the same 
                State shall not exceed the applicable percentage 
                specified in this subparagraph of the quotas of all 
                farms in the originating county (as of January 1, 1996) 
                for the crop year in which the transfer is made, plus 
                the total amount of quotas eligible for transfer from 
                the originating county in the preceding crop year that 
                were not transferred in that year or that were 
                transferred through an expired lease. However, not more 
                than an aggregate of 40 percent of the total poundage 
                quota within a county (as of January 1, 1996) may be 
                transferred outside of the county. Cumulative unexpired 
                transfers outside of a county may not exceed for a crop 
                year the following:
                          ``(i) For the 1996 crop, 15 percent.
                          ``(ii) For the 1997 crop, 25 percent.
                          ``(iii) For the 1998 crop, 30 percent.
                          ``(iv) For the 1999 crop, 35 percent.
                          ``(v) For the 2000 and subsequent crops, not 
                      more than an aggregate of 40 percent of the total 
                      poundage quota within the county as of January 1, 
                      1996.
                    ``(C) Clarification regarding fall transfers.--The 
                limitation in subparagraph (B) does not apply to 1-year 
                fall transfers, which in all cases may be made to any 
                farm in the same State.
                    ``(D) Effect of transfer.--Any farm poundage quota 
                transferred under this paragraph shall not result in any 
                reduction in the farm poundage quota for the 
                transferring farm if the transferred quota is produced 
                or considered produced on the receiving farm.''; and
                    (B) by adding at the end the following:
            ``(4) Transfers in counties with small quotas.--
        Notwithstanding paragraphs (1) and (2), in the case of any 
        county in a State for which the poundage quota allocated to the 
        county was less than 100,000 pounds for the preceding year's 
        crop, all or any part of a farm poundage quota may be 
        transferred by sale or lease or otherwise from a farm in the 
        county to a farm in another county in the same State.''.

[[Page 110 STAT. 931]]

SEC. 156. <<NOTE: 7 USC 7272.>> SUGAR PROGRAM.

    (a) Sugarcane.--The Secretary shall make loans available to 
processors of domestically grown sugarcane at a rate equal to 18 cents 
per pound for raw cane sugar.
    (b) Sugar Beets.--The Secretary shall make loans available to 
processors of domestically grown sugar beets at a rate equal to 22.9 
cents per pound for refined beet sugar.
    (c) Reduction in Loan Rates.--
            (1) Reduction required.--The Secretary shall reduce the loan 
        rate specified in subsection (a) for domestically grown 
        sugarcane and subsection (b) for domestically grown sugar beets 
        if the Secretary determines that negotiated reductions in export 
        subsidies and domestic subsidies provided for sugar of other 
        major sugar growing, producing, and exporting countries in the 
        aggregate exceed the commitments made as part of the Agreement 
        on Agriculture.
            (2) Extent of reduction.--The Secretary shall not reduce the 
        loan rate under subsection (a) or (b) below a rate that provides 
        an equal measure of support to that provided by other major 
        sugar growing, producing, and exporting countries, based on an 
        examination of both domestic and export subsidies subject to 
        reduction in the Agreement on Agriculture.
            (3) Announcement of reduction.--The Secretary shall announce 
        any loan rate reduction to be made under this subsection as far 
        in advance as is practicable.
            (4) Definitions.--In this subsection:
                    (A) Agreement on agriculture.--The term ``Agreement 
                on Agriculture'' means the Agreement on Agriculture 
                referred to in section 101(d)(2) of the Uruguay Round 
                Agreements Act (19 U.S.C. 3511(d)(2)).
                    (B) Major sugar countries.--The term ``major sugar 
                growing, producing, and exporting countries'' means--
                          (i) the countries of the European Union; and
                          (ii) the 10 foreign countries not covered by 
                      subparagraph (A) that the Secretary determines 
                      produce the greatest quantity of sugar.

    (d) Term of Loans.--
            (1) In general.--A loan under this section during any fiscal 
        year shall be made available not earlier than the beginning of 
        the fiscal year and shall mature at the earlier of--
                    (A) the end of the 9-month period beginning on the 
                first day of the first month after the month in which 
                the loan is made; or
                    (B) the end of the fiscal year in which the loan is 
                made.
            (2) Supplemental loans.--In the case of a loan made under 
        this section in the last 3 months of a fiscal year, the 
        processor may repledge the sugar as collateral for a second loan 
        in the subsequent fiscal year, except that the second loan 
        shall--
                    (A) be made at the loan rate in effect at the time 
                the second loan is made; and
                    (B) mature in 9 months less the quantity of time 
                that the first loan was in effect.

    (e) Loan Type; Processor Assurances.--

[[Page 110 STAT. 932]]

            (1) Recourse loans.--Subject to paragraph (2), the Secretary 
        shall carry out this section through the use of recourse loans.
            (2) Nonrecourse loans.--During any fiscal year in which the 
        tariff rate quota for imports of sugar into the United States is 
        established at, or is increased to, a level in excess of 
        1,500,000 short tons raw value, the Secretary shall carry out 
        this section by making available nonrecourse loans. Any recourse 
        loan previously made available by the Secretary under this 
        section during the fiscal year shall be changed by the Secretary 
        into a nonrecourse loan.
            (3) Processor assurances.--If the Secretary is required 
        under paragraph (2) to make nonrecourse loans available during a 
        fiscal year or to change recourse loans into nonrecourse loans, 
        the Secretary shall obtain from each processor that receives a 
        loan under this section such assurances as the Secretary 
        considers adequate to ensure that the processor will provide 
        payments to producers that are proportional to the value of the 
        loan received by the processor for sugar beets and sugarcane 
        delivered by producers served by the processor. The Secretary 
        may establish appropriate minimum payments for purposes of this 
        paragraph.

    (f) Marketing Assessment.--
            (1) <<NOTE: Effective date.>> Sugarcane.--Effective for 
        marketings of raw cane sugar during the 1996 through 2003 fiscal 
        years, the first processor of sugarcane shall remit to the 
        Commodity Credit Corporation a nonrefundable marketing 
        assessment in an amount equal to--
                    (A) in the case of marketings during fiscal year 
                1996, 1.1 percent of the loan rate established under 
                subsection (a) per pound of raw cane sugar, processed by 
                the processor from domestically produced sugarcane or 
                sugarcane molasses, that has been marketed (including 
                the transfer or delivery of the sugar to a refinery for 
                further processing or marketing); and
                    (B) in the case of marketings during each of fiscal 
                years 1997 through 2003, 1.375 percent of the loan rate 
                established under subsection (a) per pound of raw cane 
                sugar, processed by the processor from domestically 
                produced sugarcane or sugarcane molasses, that has been 
                marketed (including the transfer or delivery of the 
                sugar to a refinery for further processing or 
                marketing).
            (2) <<NOTE: Effective date.>> Sugar beets.--Effective for 
        marketings of beet sugar during the 1996 through 2003 fiscal 
        years, the first processor of sugar beets shall remit to the 
        Commodity Credit Corporation a nonrefundable marketing 
        assessment in an amount equal to--
                    (A) in the case of marketings during fiscal year 
                1996, 1.1794 percent of the loan rate established under 
                subsection (a) per pound of beet sugar, processed by the 
                processor from domestically produced sugar beets or 
                sugar beet molasses, that has been marketed; and
                    (B) in the case of marketings during each of fiscal 
                years 1997 through 2003, 1.47425 percent of the loan 
                rate established under subsection (a) per pound of beet 
                sugar, processed by the processor from domestically 
                produced

[[Page 110 STAT. 933]]

                sugar beets or sugar beet molasses, that has been 
                marketed.
            (3) Collection.--
                    (A) Timing.--A marketing assessment required under 
                this subsection shall be collected on a monthly basis 
                and shall be remitted to the Commodity Credit 
                Corporation not later than 30 days after the end of each 
                month. Any cane sugar or beet sugar processed during a 
                fiscal year that has not been marketed by September 30 
                of the year shall be subject to assessment on that date. 
                The sugar shall not be subject to a second assessment at 
                the time that it is marketed.
                    (B) Manner.--Subject to subparagraph (A), marketing 
                assessments shall be collected under this subsection in 
                the manner prescribed by the Secretary and shall be 
                nonrefundable.
            (4) Penalties.--If any person fails to remit the assessment 
        required by this subsection or fails to comply with such 
        requirements for recordkeeping or otherwise as are required by 
        the Secretary to carry out this subsection, the person shall be 
        liable to the Secretary for a civil penalty up to an amount 
        determined by multiplying--
                    (A) the quantity of cane sugar or beet sugar 
                involved in the violation; by
                    (B) the loan rate for the applicable crop of 
                sugarcane or sugar beets.
            (5) Enforcement.--The Secretary may enforce this subsection 
        in a court of the United States.

    (g) Forfeiture Penalty.--
            (1) In general.--A penalty shall be assessed on the 
        forfeiture of any sugar pledged as collateral for a nonrecourse 
        loan under this section.
            (2) Cane sugar.--The penalty for cane sugar shall be 1 cent 
        per pound.
            (3) Beet sugar.--The penalty for beet sugar shall bear the 
        same relation to the penalty for cane sugar as the marketing 
        assessment for sugar beets bears to the marketing assessment for 
        sugarcane.
            (4) Effect of forfeiture.--Any payments owed producers by a 
        processor that forfeits any sugar pledged as collateral for a 
        nonrecourse loan shall be reduced in proportion to the loan 
        forfeiture penalty incurred by the processor.

    (h) Information Reporting.--
            (1) Duty of processors and refiners to report.--A sugarcane 
        processor, cane sugar refiner, and sugar beet processor shall 
        furnish the Secretary, on a monthly basis, such information as 
        the Secretary may require to administer sugar programs, 
        including the quantity of purchases of sugarcane, sugar beets, 
        and sugar, and production, importation, distribution, and stock 
        levels of sugar.
            (2) Penalty.--Any person willfully failing or refusing to 
        furnish the information, or furnishing willfully any false 
        information, shall be subject to a civil penalty of not more 
        than $10,000 for each such violation.
            (3) Monthly reports.--Taking into consideration the 
        information received under paragraph (1), the Secretary shall

[[Page 110 STAT. 934]]

        publish on a monthly basis composite data on production, 
        imports, distribution, and stock levels of sugar.

    (i) Crops.--This section (other than subsection (f)) shall be 
effective only for the 1996 through 2002 crops of sugar beets and 
sugarcane.

                       Subtitle E--Administration

SEC. 161. <<NOTE: 7 USC 7281.>> ADMINISTRATION.

    (a) Use of Commodity Credit Corporation.--The Secretary shall carry 
out this title through the Commodity Credit Corporation.
    (b) Limitation on Expenditure of Commodity Credit Corporation 
Funds.--
            (1) General powers and responsibilities.--Section 4 of the 
        Commodity Credit Corporation Charter Act (15 U.S.C. 714b) is 
        amended--
                    (A) in the first sentence of subsection (g), by 
                inserting before the period the following: ``, except 
                that obligations under all such contracts or agreements 
                (other than reimbursable agreements under section 11) 
                for equipment or services relating to automated data 
                processing, information technologies, or related items 
                (including telecommunications equipment and computer 
                hardware and software) may not exceed $170,000,000 in 
                fiscal year 1996 and not more than $275,000,000 in the 
                6-fiscal year period beginning on October 1, 1996, 
                unless additional amounts for such contracts and 
                agreements are provided in advance in appropriation 
                Acts''; and
                    (B) in subsection (h), by striking ``shall have 
                power to acquire personal property necessary to the 
                conduct of its business but''.
            (2) Reimbursable agreements.--Section 11 of the Commodity 
        Credit Corporation Charter Act (15 U.S.C. 714i) is amended by 
        adding at the end the following: ``After September 30, 1996, the 
        total amount of all allotments and fund transfers from the 
        Corporation under this section (including allotments and 
        transfers for automated data processing or information resource 
        management activities) for a fiscal year may not exceed the 
        total amount of the allotments and transfers made under this 
        section in fiscal year 1995.''.
            (3) Reporting requirements.--Section 13 of the Commodity 
        Credit Corporation Charter Act (15 U.S.C. 714k) is amended by 
        adding at the end the following: ``In addition to the annual 
        report, the Corporation shall submit to Congress on a quarterly 
        basis an itemized report of all expenditures over $10,000 made 
        under section 5 or 11 during the period covered by the report, 
        including expenditures in the form of allotments or fund 
        transfers to other agencies and departments of the Federal 
        Government.''.

    (c) Determinations by Secretary.--A determination made by the 
Secretary under this title shall be final and conclusive.
    (d) Regulations.--Not later than 90 days after the date of enactment 
of this title, the Secretary and the Commodity Credit Corporation, as 
appropriate, shall issue such regulations as are necessary to implement 
this title. The issuance of the regulations shall be made without regard 
to--

[[Page 110 STAT. 935]]

            (1) the notice and comment provisions of section 553 of 
        title 5, United States Code;
            (2) the Statement of Policy of the Secretary of Agriculture 
        effective July 24, 1971 (36 Fed. Reg. 13804) relating to notices 
        of proposed rulemaking and public participation in rulemaking; 
        and
            (3) chapter 35 of title 44, United States Code (commonly 
        know as the ``Paperwork Reduction Act'').

SEC. 162. <<NOTE: 7 USC 7282.>> ADJUSTMENTS OF LOANS.

    (a) Adjustment Authority.--The Secretary may make appropriate 
adjustments in the loan rates for any commodity for differences in 
grade, type, quality, location, and other factors.
    (b) Manner of Adjustment.--The adjustments under the authority of 
this section shall, to the maximum extent practicable, be made in such 
manner that the average loan level for the commodity will, on the basis 
of the anticipated incidence of the factors, be equal to the level of 
support determined as provided in this title.
    (c) Adjustment on County Basis.--The Secretary may establish loan 
rates for a crop for producers in individual counties in a manner that 
results in the lowest such rate being 95 percent of the national average 
loan rate, except that such action shall not result in an increase in 
outlays. Adjustments under this subsection shall not result in an 
increase in the national average loan rate for any year.

SEC. 163. <<NOTE: 7 USC 7283.>> COMMODITY CREDIT CORPORATION INTEREST 
            RATE.

    Notwithstanding any other provision of law, the monthly Commodity 
Credit Corporation interest rate applicable to loans provided for 
agricultural commodities by the Corporation shall be 100 basis points 
greater than the rate determined under the applicable interest rate 
formula in effect on October 1, 1995.

SEC. 164. <<NOTE: 7 USC 7284.>> PERSONAL LIABILITY OF PRODUCERS FOR 
            DEFICIENCIES.

    (a) In General.--Except as provided in subsection (b), no producer 
shall be personally liable for any deficiency arising from the sale of 
the collateral securing any nonrecourse loan made under this title 
unless the loan was obtained through a fraudulent representation by the 
producer.
    (b) Limitations.--Subsection (a) shall not prevent the Commodity 
Credit Corporation or the Secretary from requiring a producer to assume 
liability for--
            (1) a deficiency in the grade, quality, or quantity of a 
        commodity stored on a farm or delivered by the producer;
            (2) a failure to properly care for and preserve a commodity; 
        or
            (3) a failure or refusal to deliver a commodity in 
        accordance with a program established under this title.

    (c) Acquisition of Collateral.--In the case of a nonrecourse loan 
made under this title or the Commodity Credit Corporation Charter Act 
(15 U.S.C. 714 et seq.), if the Commodity Credit Corporation acquires 
title to the unredeemed collateral, the Corporation shall be under no 
obligation to pay for any market value that the collateral may have in 
excess of the loan indebtedness.
    (d) Sugarcane and Sugar Beets.--A security interest obtained by the 
Commodity Credit Corporation as a result of the execution of a security 
agreement by the processor of sugarcane or sugar

[[Page 110 STAT. 936]]

beets shall be superior to all statutory and common law liens on raw 
cane sugar and refined beet sugar in favor of the producers of sugarcane 
and sugar beets and all prior recorded and unrecorded liens on the crops 
of sugarcane and sugar beets from which the sugar was derived.

SEC. 165. <<NOTE: 7 USC 7285.>> COMMODITY CREDIT CORPORATION SALES PRICE 
            RESTRICTIONS.

    (a) General Sales Authority.--The Commodity Credit Corporation may 
sell any commodity owned or controlled by the Corporation at any price 
that the Secretary determines will maximize returns to the Corporation.
    (b) Nonapplication of Sales Price Restrictions.--Subsection (a) 
shall not apply to--
            (1) a sale for a new or byproduct use;
            (2) a sale of peanuts or oilseeds for the extraction of oil;
            (3) a sale for seed or feed if the sale will not 
        substantially impair any loan program;
            (4) a sale of a commodity that has substantially 
        deteriorated in quality or as to which there is a danger of loss 
        or waste through deterioration or spoilage;
            (5) a sale for the purpose of establishing a claim arising 
        out of a contract or against a person who has committed fraud, 
        misrepresentation, or other wrongful act with respect to the 
        commodity;
            (6) a sale for export, as determined by the Corporation; and
            (7) a sale for other than a primary use.

    (c) Presidential Disaster Areas.--
            (1) In general.--Notwithstanding subsection (a), on such 
        terms and conditions as the Secretary may consider in the public 
        interest, the Corporation may make available any commodity or 
        product owned or controlled by the Corporation for use in 
        relieving distress--
                    (A) in any area in the United States (including the 
                Virgin Islands) declared by the President to be an acute 
                distress area because of unemployment or other economic 
                cause, if the President finds that the use will not 
                displace or interfere with normal marketing of 
                agricultural commodities; and
                    (B) in connection with any major disaster determined 
                by the President to warrant assistance by the Federal 
                Government under the Robert T. Stafford Disaster Relief 
                and Emergency Assistance Act (42 U.S.C. 5121 et seq.).
            (2) Costs.--Except on a reimbursable basis, the Corporation 
        shall not bear any costs in connection with making a commodity 
        available under paragraph (1) beyond the cost of the commodity 
        to the Corporation incurred in--
                    (A) the storage of the commodity; and
                    (B) the handling and transportation costs in making 
                delivery of the commodity to designated agencies at 1 or 
                more central locations in each State or other area.

    (d) Efficient Operations.--Subsection (a) shall not apply to the 
sale of a commodity the disposition of which is desirable in the 
interest of the effective and efficient conduct of the operations of the 
Corporation because of the small quantity of the commodity

[[Page 110 STAT. 937]]

involved, or because of the age, location, or questionable continued 
storability of the commodity.

              Subtitle F--Permanent Price Support Authority

SEC. 171. <<NOTE: 7 USC 7301.>> SUSPENSION AND REPEAL OF PERMANENT PRICE 
            SUPPORT AUTHORITY.

    (a) Agricultural Adjustment Act of 1938.--
            (1) Suspensions.--The following provisions of the 
        Agricultural Adjustment Act of 1938 shall not be applicable to 
        the 1996 through 2002 crops of loan commodities, peanuts, and 
        sugar and shall not be applicable to milk during the period 
        beginning on the date of enactment of this title and ending on 
        December 31, 2002:
                    (A) Parts II through V of subtitle B of title III (7 
                U.S.C. 1326-1351).
                    (B) Subsections (a) through (j) of section 358 (7 
                U.S.C. 1358).
                    (C) Subsections (a) through (h) of section 358a (7 
                U.S.C. 1358a).
                    (D) Subsections (a), (b), (d), and (e) of section 
                358d (7 U.S.C. 1359).
                    (E) Part VII of subtitle B of title III (7 U.S.C. 
                1359aa-1359jj).
                    (F) In the case of peanuts, part I of subtitle C of 
                title III (7 U.S.C. 1361-1368).
                    (G) In the case of upland cotton, section 377 (7 
                U.S.C. 1377).
                    (H) Subtitle D of title III (7 U.S.C. 1379a-1379j).
                    (I) Title IV (7 U.S.C. 1401-1407).
            (2) <<NOTE: Effective date.>> Reports and records.--
        Effective only for the 1996 through 2002 crops of peanuts, the 
        first sentence of section 373(a) of the Agricultural Adjustment 
        Act of 1938 (7 U.S.C. 1373(a)) is amended by inserting before 
        ``all brokers and dealers in peanuts'' the following: ``all 
        producers engaged in the production of peanuts,''.

    (b) Agricultural Act of 1949.--
            (1) Suspensions.--The following provisions of the 
        Agricultural Act of 1949 shall not be applicable to the 1996 
        through 2002 crops of loan commodities, peanuts, and sugar and 
        shall not be applicable to milk during the period beginning on 
        the date of enactment of this title and ending on December 31, 
        2002:
                    (A) Section 101 (7 U.S.C. 1441).
                    (B) Section 103(a) (7 U.S.C. 1444(a)).
                    (C) Section 105 (7 U.S.C. 1444b).
                    (D) Section 107 (7 U.S.C. 1445a).
                    (E) Section 110 (7 U.S.C. 1445e).
                    (F) Section 112 (7 U.S.C. 1445g).
                    (G) Section 115 (7 U.S.C. 1445k).
                    (H) Section 201 (7 U.S.C. 1446).
                    (I) Title III (7 U.S.C. 1447-1449).
                    (J) Title IV (7 U.S.C. 1421-1433d), other than 
                sections 404, 412, and 416 (7 U.S.C. 1424, 1429, and 
                1431).
                    (K) Title V (7 U.S.C. 1461-1469).

[[Page 110 STAT. 938]]

                    (L) Title VI (7 U.S.C. 1471-1471j).
            (2) Repeals.--The following provisions of the Agricultural 
        Act of 1949 are repealed:
                    (A) Section 101B (7 U.S.C. 1441-2).
                    (B) Section 103B (7 U.S.C. 1444-2).
                    (C) Section 105B (7 U.S.C. 1444f).
                    (D) Section <<NOTE: 7 USC 1445b-3a.>> 107B (7 U.S.C. 
                1445-3a).
                    (E) Section 108B (7 U.S.C. 1445c-3).
                    (F) Section 113 (7 U.S.C. 1445h).
                    (G) Subsections (b) and (c) of section 114 (7 U.S.C. 
                1445j).
                    (H) Sections 205, 206, and 207 (7 U.S.C. 1446f, 
                1446g, and 1446h).
                    (I) Sections 406 and 427 (7 U.S.C. 1426 and 1433f).
            (3) Potential price support for rice.--Section 101 of the 
        Agricultural Act of 1949 (7 U.S.C. 1441), as suspended by 
        paragraph (1), is amended by adding after subsection (d) the 
        following:

    ``(e) Rice.--The Secretary shall make available to producers of each 
crop of rice on a farm price support at a level that is not less than 50 
percent, or more than 90 percent of the parity price for rice as the 
Secretary determines will not result in increasing stocks of rice to the 
Commodity Credit Corporation.''.
    (c) Suspension of Certain Quota Provisions.--The joint resolution 
entitled ``A joint resolution relating to corn and wheat marketing 
quotas under the Agricultural Adjustment Act of 1938, as amended'', 
approved May 26, 1941 (7 U.S.C. 1330 and 1340), shall not be applicable 
to the crops of wheat planted for harvest in the calendar years 1996 
through 2002.

SEC. 172. <<NOTE: 7 USC 7302.>> EFFECT OF AMENDMENTS.

    (a) Effect on Prior Crops.--Except as otherwise specifically 
provided in this title and notwithstanding any other provision of law, 
this title and the amendments made by this title shall not affect the 
authority of the Secretary to carry out a price support or production 
adjustment program for any of the 1991 through 1995 crops of an 
agricultural commodity established under a provision of law in effect 
immediately before the date of enactment of this title.
    (b) Liability.--A provision of this title or an amendment made by 
this title shall not affect the liability of any person under any 
provision of law as in effect before the date of enactment of this 
title.

      Subtitle G--Commission on 21st Century Production Agriculture

SEC. 181. <<NOTE: 7 USC 7311.>> ESTABLISHMENT.

    There is established a commission to be known as the ``Commission on 
21st Century Production Agriculture'' (in this subtitle referred to as 
the ``Commission'').

SEC. 182. <<NOTE: 7 USC 7312.>> COMPOSITION.

    (a) Membership and Appointment.--The Commission shall be composed of 
11 members, appointed as follows:
            (1) <<NOTE: President.>> Three members shall be appointed by 
        the President.

[[Page 110 STAT. 939]]

            (2) Four members shall be appointed by the Chairman of the 
        Committee on Agriculture of the House of Representatives in 
        consultation with the ranking minority member of the Committee.
            (3) Four members shall be appointed by the Chairman of the 
        Committee on Agriculture, Nutrition, and Forestry of the Senate 
        in consultation with the ranking minority member of the 
        Committee.

    (b) Qualifications.--At least 1 of the members appointed under each 
of paragraphs (1), (2), and (3) of subsection (a) shall be an individual 
who is primarily involved in production agriculture. All other members 
of the Commission shall be appointed from among individuals having 
knowledge and experience in agricultural production, marketing, finance, 
or trade.
    (c) Term of Members; Vacancies.--A member of the Commission shall be 
appointed for the life of the Commission. A vacancy on the Commission 
shall not affect its powers, but shall be filled in the same manner as 
the original appointment was made.
    (d) Time for Appointment; First Meeting.--The members of the 
Commission shall be appointed not later than October 1, 1997. The 
Commission shall convene its first meeting to carry out its duties under 
this subtitle 30 days after 6 members of the Commission have been 
appointed.
    (e) Chairperson.--The chairperson of the Commission shall be 
designated jointly by the Chairman of the Committee on Agriculture of 
the House of Representatives and the Chairman of the Committee on 
Agriculture, Nutrition, and Forestry of the Senate from among the 
members of the Commission.

SEC. 183. <<NOTE: 7 USC 7313.>> COMPREHENSIVE REVIEW OF PAST AND FUTURE 
            OF PRODUCTION AGRICULTURE.

    (a) Initial Review.--The Commission shall conduct a comprehensive 
review of changes in the condition of production agriculture in the 
United States since the date of enactment of this title and the extent 
to which the changes are the result of this title and the amendments 
made by this title. The review shall include the following:
            (1) An assessment of the initial success of production 
        flexibility contracts in supporting the economic viability of 
        farming in the United States.
            (2) An assessment of economic risks to farms delineated by 
        size of farm operation (such as small, medium, or large farms) 
        and region of production.
            (3) An assessment of the food security situation in the 
        United States in the areas of trade, consumer prices, 
        international competitiveness of United States production 
        agriculture, food supplies, and humanitarian relief.
            (4) An assessment of the changes in farmland values and 
        agricultural producer incomes since the date of enactment of 
        this title.
            (5) An assessment of the extent to which regulatory relief 
        for agricultural producers has been enacted and implemented, 
        including the application of cost/benefit principles in the 
        issuance of agricultural regulations.
            (6) An assessment of the extent to which tax relief for 
        agricultural producers has been enacted in the form of capital

[[Page 110 STAT. 940]]

        gains tax reductions, estate tax exemptions, and mechanisms to 
        average tax loads over high- and low-income years.
            (7) An assessment of the effect of any Federal Government 
        interference in agricultural export markets, such as the 
        imposition of trade embargoes, and the degree of implementation 
        and success of international trade agreements and United States 
        export programs.
            (8) An assessment of the likely effect of the sale, lease, 
        or transfer of farm poundage quota for peanuts across State 
        lines.

    (b) Subsequent Review.--The Commission shall conduct a comprehensive 
review of the future of production agriculture in the United States and 
the appropriate role of the Federal Government in support of production 
agriculture. The review shall include the following:
            (1) An assessment of changes in the condition of production 
        agriculture in the United States since the initial review 
        conducted under subsection (a).
            (2) Identification of the appropriate future relationship of 
        the Federal Government with production agriculture after 2002.
            (3) An assessment of the personnel and infrastructure 
        requirements of the Department of Agriculture necessary to 
        support the future relationship of the Federal Government with 
        production agriculture.
            (4) An assessment of economic risks to farms delineated by 
        size of farm operation (such as small, medium, or large farms) 
        and region of production.

    (c) Recommendations.--In carrying out the subsequent review under 
subsection (b), the Commission shall develop specific recommendations 
for legislation to achieve the appropriate future relationship of the 
Federal Government with production agriculture identified under 
subsection (a)(2).

SEC. 184. <<NOTE: 7 USC 7314.>> REPORTS.

    (a) Report on Initial Review.--Not later than June 1, 1998, the 
Commission shall submit to the President, the Committee on Agriculture 
of the House of Representatives, and the Committee on Agriculture, 
Nutrition, and Forestry of the Senate a report containing the results of 
the initial review conducted under section 183(a).
    (b) Report on Subsequent Review.--Not later than January 1, 2001, 
the Commission shall submit to the President and the congressional 
committees specified in subsection (a) a report containing the results 
of the subsequent review conducted under section 183(b).

SEC. 185. <<NOTE: 7 USC 7315.>> POWERS.

    (a) Hearings.--The Commission may, for the purpose of carrying out 
this subtitle, conduct such hearings, sit and act at such times, take 
such testimony, and receive such evidence, as the Commission considers 
appropriate.
    (b) Assistance From Other Agencies.--The Commission may secure 
directly from any department or agency of the Federal Government such 
information as may be necessary for the Commission to carry out its 
duties under this subtitle. On the request of the chairperson of the 
Commission, the head of the department or agency shall, to the extent 
permitted by law, furnish such information to the Commission.

[[Page 110 STAT. 941]]

    (c) Mail.--The Commission may use the United States mails in the 
same manner and under the same conditions as the departments and 
agencies of the Federal Government.
    (d) Assistance From Secretary.--The Secretary shall provide to the 
Commission appropriate office space and such reasonable administrative 
and support services as the Commission may request.

SEC. 186. <<NOTE: 7 USC 7316.>> COMMISSION PROCEDURES.

    (a) Meetings.--The Commission shall meet on a regular basis (as 
determined by the chairperson) and at the call of the chairperson or a 
majority of its members.
    (b) Quorum.--A majority of the members of the Commission shall 
constitute a quorum for the transaction of business.

SEC. 187. <<NOTE: 7 USC 7317.>> PERSONNEL MATTERS.

    (a) Compensation.--Each member of the Commission shall serve without 
compensation, but shall be allowed travel expenses including per diem in 
lieu of subsistence, as authorized by section 5703 of title 5, United 
States Code, when engaged in the performance of Commission duties.
    (b) Staff.--
            (1) Appointment.--The Commission shall appoint a staff 
        director, who shall be paid at a rate not to exceed the maximum 
        rate of basic pay under section 5376 of title 5, United States 
        Code, and such professional and clerical personnel as may be 
        reasonable and necessary to enable the Commission to carry out 
        its duties under this subtitle without regard to the provisions 
        of title 5, United States Code, governing appointments in the 
        competitive service, and without regard to the provisions of 
        chapter 51 and subchapter III of chapter 53 of such title, or 
        any other provision of law, relating to the number, 
        classification, and General Schedule rates.
            (2) Limitation on compensation.--No employee appointed under 
        this subsection (other than the staff director) may be 
        compensated at a rate to exceed the maximum rate applicable to 
        level GS-15 of the General Schedule.

    (c) Detailed Personnel.--On the request of the chairperson of the 
Commission, the head of any department or agency of the Federal 
Government is authorized to detail, without reimbursement, any personnel 
of the department or agency to the Commission to assist the Commission 
in carrying out its duties under this section. The detail of any 
individual may not result in the interruption or loss of civil service 
status or other privilege of the individual.

SEC. 188. <<NOTE: 7 USC 7318.>> TERMINATION OF COMMISSION.

    The Commission shall terminate on submission of the final report 
required by section 184.

             Subtitle H--Miscellaneous Commodity Provisions

SEC. 191. <<NOTE: 7 USC 7331.>> OPTIONS PILOT PROGRAM.

    (a) Pilot Programs Authorized.--Until December 31, 2002, the 
Secretary of Agriculture may conduct a pilot program for 1 or more 
agricultural commodities supported under this title to

[[Page 110 STAT. 942]]

ascertain whether futures and options contracts can provide producers 
with reasonable protection from the financial risks of fluctuations in 
price, yield, and income inherent in the production and marketing of the 
commodities. The pilot program shall be an alternative to other related 
programs of the Department of Agriculture.
    (b) Distribution of Pilot Program.--For each agricultural commodity 
included in the pilot program, the Secretary may operate the pilot 
program in not more than 100 counties, except that not more than 6 of 
the counties may be located in any 1 State. The pilot program for a 
commodity shall not be operated in any county for more than 3 of the 
1996 through 2002 calendar years.
    (c) Eligible Participants.--In operating the pilot program, the 
Secretary may enter into contract with a producer who--
            (1) is eligible for a production flexibility contract, a 
        marketing assistance loan, or other assistance under this title;
            (2) volunteers to participate in the pilot program;
            (3) operates a farm located in a county selected for the 
        pilot program; and
            (4) meets such other eligibility requirements as the 
        Secretary may establish.

    (d) Notice to Producers.--The Secretary shall provide notice to each 
producer participating in the pilot program that--
            (1) the participation of the producer is voluntary; and
            (2) neither the United States, the Commodity Credit 
        Corporation, the Federal Crop Insurance Corporation, the 
        Department of Agriculture, nor any other Federal agency is 
        authorized to guarantee that participants in the pilot program 
        will be better or worse off financially as a result of 
        participation in the pilot program than the producer would have 
        been if the producer had not participated in the pilot program.

    (e) Contracts.--The Secretary shall set forth in each contract under 
the pilot program the terms and conditions for participation in the 
pilot program and the notice required by subsection (d).
    (f) Eligible Markets.--Trades for futures and options contracts 
under the pilot program shall be carried out on commodity futures and 
options markets designated as contract markets under the Commodity 
Exchange Act (7 U.S.C. 1 et seq.).
    (g) Recordkeeping.--A producer participating in the pilot program 
shall compile, maintain, and submit (or authorize the compilation, 
maintenance, and submission) of such documentation as the regulations 
governing the pilot program require.
    (h) Use of Commodity Credit Corporation.--The Secretary shall fund 
and operate the pilot program through the Commodity Credit Corporation. 
To the maximum extent practicable, the Secretary shall operate the pilot 
program in a budget neutral manner.
    (i) Conforming Repeal.--The Options Pilot Program Act of 1990 
(subtitle E of title XI of Public Law 101-624; 7 U.S.C. 1421 note) is 
repealed.

SEC. 192. <<NOTE: 7 USC 7332.>> RISK MANAGEMENT EDUCATION.

    In consultation with the Commodity Futures Trading Commission, the 
Secretary shall provide such education in management of the financial 
risks inherent in the production and marketing of agricultural 
commodities as the Secretary considers appropriate. As part of such 
educational activities, the Secretary may develop and implement programs 
to facilitate the participation of agricultural producers in commodity 
futures trading programs, forward

[[Page 110 STAT. 943]]

contracting options, and insurance protection programs by assisting and 
training producers in the usage of such programs. In implementing this 
authority, the Secretary may use existing research and extension 
authorities and resources of the Department of Agriculture.

SEC. 193. CROP INSURANCE.

    (a) Catastrophic Risk Protection.--
            (1) Single delivery.--Section 508(b)(4) of the Federal Crop 
        Insurance Act (7 U.S.C. 1508(b)(4)) is amended by adding at the 
        end the following:
                    ``(C) Delivery of coverage.--
                          ``(i) In general.--In full consultation with 
                      approved insurance providers, the Secretary may 
                      continue to offer catastrophic risk protection in 
                      a State (or a portion of a State) through local 
                      offices of the Department if the Secretary 
                      determines that there is an insufficient number of 
                      approved insurance providers operating in the 
                      State or portion of the State to adequately 
                      provide catastrophic risk protection coverage to 
                      producers.
                          ``(ii) Coverage by approved insurance 
                      providers.--To the extent that catastrophic risk 
                      protection coverage by approved insurance 
                      providers is sufficiently available in a State (or 
                      a portion of a State) as determined by the 
                      Secretary, only approved insurance providers may 
                      provide the coverage in the State or portion of 
                      the State.
                          ``(iii) <<NOTE: Announcement.>> Timing of 
                      determinations.--Not later than 90 days after the 
                      date of enactment of this subparagraph, the 
                      Secretary shall announce the results of the 
                      determinations under clause (i) for policies for 
                      the 1997 crop year. For subsequent crop years, the 
                      Secretary shall make the announcement not later 
                      than April 30 of the year preceding the year in 
                      which the crop will be produced, or at such other 
                      times during the year as the Secretary finds 
                      practicable in consultation with affected crop 
                      insurance providers for those States (or portions 
                      of States) in which catastrophic coverage remains 
                      available through local offices of the Department.
                          ``(iv) <<NOTE: Effective date.>> Current 
                      policies.--This clause shall take effect beginning 
                      with the 1997 crop year. Subject to clause (ii) 
                      all catastrophic risk protection policies written 
                      by local offices of the Department shall be 
                      transferred to the approved insurance provider for 
                      performance of all sales, service, and loss 
                      adjustment functions. Any fees in connection with 
                      such policies that are not yet collected at the 
                      time of the transfer shall be payable to the 
                      approved insurance providers assuming the 
                      policies. The transfer process for policies for 
                      the 1997 crop year with sales closing dates before 
                      January 1, 1997, shall begin at the time of the 
                      Secretary's announcement under clause (iii) and be 
                      completed by the sales closing date for the crop 
                      and county. The transfer process for all 
                      subsequent policies (including policies for the 
                      1998 and subsequent crop years) shall

[[Page 110 STAT. 944]]

                      begin at a date that permits the process to be 
                      completed not later than 45 days before the sales 
                      closing date.''.
            (2) Waiver of mandatory linkage.--Section 508(b)(7) of the 
        Federal Crop Insurance Act (7 U.S.C. 1508(b)(7)) is amended by 
        striking subparagraph (A) and inserting the following:
                    ``(A) <<NOTE: Effective date.>> In general.--
                Effective for the spring-planted 1996 and subsequent 
                crops (and fall-planted 1996 crops at the option of the 
                Secretary), to be eligible for any payment or loan under 
                the Agricultural Market Transition Act, for the 
                conservation reserve program, or for any benefit 
                described in section 371 of the Consolidated Farm and 
                Rural Development Act (7 U.S.C. 2008f), a person shall--
                          ``(i) obtain at least the catastrophic level 
                      of insurance for each crop of economic 
                      significance in which the person has an interest; 
                      or
                          ``(ii) provide a written waiver to the 
                      Secretary that waives any eligibility for 
                      emergency crop loss assistance in connection with 
                      the crop.''.
            (3) <<NOTE: 7 USC 1508 note.>> Special rule for 1996.--
                    (A) Effective period.--This paragraph shall apply 
                only to the 1996 crop year.
                    (B) Availability.--During a period of not less than 
                2 weeks, but not more than 4 weeks, beginning on the 
                date of enactment of this title, the Secretary shall 
                provide producers with an opportunity to obtain 
                catastrophic risk protection insurance under section 
                508(b) of the Federal Crop Insurance Act (7 U.S.C. 
                1508(b)) for a spring-planted crop, and limited 
                additional coverage for malting barley under the Malting 
                Barley Price and Quality Endorsement. The Federal Crop 
                Insurance Corporation may attach such limitations and 
                restrictions on obtaining insurance during this period 
                as the Corporation considers necessary to maintain the 
                actuarial soundness of the crop insurance program.
                    (C) Attachment.--Insurance coverage under any policy 
                obtained under this paragraph during the extended sales 
                period shall not attach until 10 days after the 
                application.
                    (D) Cancellation.--During the extended period, a 
                producer may cancel a catastrophic risk protection 
                policy if--
                          (i) the policy is a continuation of a policy 
                      that was obtained for a previous crop year; and
                          (ii) the cancellation request is made before 
                      the acreage reporting date for the policy for the 
                      1996 crop year.

    (b) <<NOTE: 7 USC 1508 note.>> Crop Insurance Pilot Project.--
            (1) Coverage.--The Secretary of Agriculture shall develop 
        and administer a pilot project for crop insurance coverage that 
        indemnifies crop losses due to a natural disaster such as insect 
        infestation or disease.
            (2) Actuarial soundness.--A pilot project under this 
        paragraph shall be actuarially sound, as determined by the 
        Secretary and administered at no net cost.
            (3) Duration.--A pilot project under this paragraph shall be 
        of two years' duration.

[[Page 110 STAT. 945]]

    (c) Crop Insurance for Nursery Crops.--Section 508(a)(6) of the 
Federal Crop Insurance Act (7 U.S.C. 1508(a)(6)) is amended by adding at 
the end the following:
                    ``(D) Addition of nursery crops.--Not later than 2 
                years after the date of enactment of this subparagraph, 
                the Corporation shall conduct a study and limited pilot 
                program on the feasibility of insuring nursery crops.''.

    (d) Marketing Windows.--Section 508(j) of the Federal Crop Insurance 
Act (7 U.S.C. 1508(j)) is amended by adding at the end the following:
            ``(4) Marketing windows.--The Corporation shall consider 
        marketing windows in determining whether it is feasible to 
        require planting during a crop year.''.

    (e) Funding.--
            (1) Mandatory expenses.--Section 516(a)(2) of the Federal 
        Crop Insurance Act (7 U.S.C. 1516(a)(2)) is amended--
                    (A) by inserting ``and'' at the end of subparagraph 
                (A);
                    (B) by striking ``; and'' at the end of subparagraph 
                (B) and inserting a period; and
                    (C) by striking subparagraph (C).
            (2) Funding of sales commissions.--Section 516(b) of the 
        Federal Crop Insurance Act (7 U.S.C. 1516(b)) is amended--
                    (A) in paragraph (1)--
                          (i) by striking ``(A) In general'' and all 
                      that follows through ``subparagraph (B), in'' and 
                      inserting ``In''; and
                          (ii) by striking subparagraph (B); and
                    (B) in paragraph (2)(B), by striking ``subject to 
                paragraph (1)(B),''.
            (3) Other expenses.--Section 516(b)(2)(A) of the Federal 
        Crop Insurance Act (7 U.S.C. 1516(b)(2)(A)) is amended by 
        striking ``, noninsured assistance benefits,''.

    (f) Limitation on Multiple Benefits for Same Loss.--Section 508 of 
the Federal Crop Insurance Act (7 U.S.C. 1508) is amended by adding at 
the end the following:
    ``(n) Limitation on Multiple Benefits for Same Loss.--If a producer 
who is eligible to receive benefits under catastrophic risk protection 
under subsection (b) is also eligible to receive assistance for the same 
loss under any other program administered by the Secretary, the producer 
shall be required to elect whether to receive benefits under this title 
or under the other program, but not both. A producer who purchases 
additional coverage under subsection (c) may also receive assistance for 
the same loss under other programs administered by the Secretary, except 
that the amount received for the loss under the additional coverage 
together with the amount received under the other programs may not 
exceed the amount of the actual loss of the producer.''.

SEC. 194. ESTABLISHMENT OF OFFICE OF RISK MANAGEMENT.

    (a) Establishment.--The Department of Agriculture Reorganization Act 
of 1994 is amended by inserting after section 226 (7 U.S.C. 6932) the 
following new section:

``SEC. 226A. <<NOTE: 7 USC 6933.>> OFFICE OF RISK MANAGEMENT.

    ``(a) Establishment.--Subject to subsection (e), the Secretary shall 
establish and maintain in the Department an independent Office of Risk 
Management.

[[Page 110 STAT. 946]]

    ``(b) Functions of the Office of Risk Management.--The Office of 
Risk Management shall have jurisdiction over the following functions:
            ``(1) Supervision of the Federal Crop Insurance Corporation.
            ``(2) Administration and oversight of all aspects, including 
        delivery through local offices of the Department, of all 
        programs authorized under the Federal Crop Insurance Act (7 
        U.S.C. 1501 et seq.).
            ``(3) Any pilot or other programs involving revenue 
        insurance, risk management savings accounts, or the use of the 
        futures market to manage risk and support farm income that may 
        be established under the Federal Crop Insurance Act or other 
        law.
            ``(4) Such other functions as the Secretary considers 
        appropriate.

    ``(c) Administrator.--
            ``(1) Appointment.--The Office of Risk Management shall be 
        headed by an Administrator who shall be appointed by the 
        Secretary.
            ``(2) Manager.--The Administrator of the Office of Risk 
        Management shall also serve as Manager of the Federal Crop 
        Insurance Corporation.

    ``(d) Resources.--
            ``(1) Functional coordination.--Certain functions of the 
        Office of Risk Management, such as human resources, public 
        affairs, and legislative affairs, may be provided by a 
        consolidation of such functions under the Under Secretary of 
        Agriculture for Farm and Foreign Agricultural Services.
            ``(2) Minimum provisions.--Notwithstanding paragraph (1) or 
        any other provision of law or order of the Secretary, the 
        Secretary shall provide the Office of Risk Management with human 
        and capital resources sufficient for the Office to carry out its 
        functions in a timely and efficient manner.''.

    (b) Fiscal Year 1996 Funding.--From funds appropriated for the 
salaries and expenses of the Consolidated Farm Service Agency in the 
Agriculture, Rural Development, Food and Drug Administration, and 
Related Agencies Appropriations Act, 1996 (Public Law 104-37), the 
Secretary of Agriculture may use such sums as necessary for the salaries 
and expenses of the Office of Risk Management established under 
subsection (a).
    (c) Conforming Amendment.--Section 226(b) of the Act (7 U.S.C. 
6932(b)) is amended by striking paragraph (2).

SEC. 195. REVENUE INSURANCE.

    Section 508(h) of the Federal Crop Insurance Act (7 U.S.C. 1508(h)) 
is amended by adding at the end the following:
            ``(9) Revenue insurance pilot program.--
                    ``(A) In general.--Not later than December 31, 1996, 
                the Secretary shall carry out a pilot program in a 
                limited number of counties, as determined by the 
                Secretary, for crop years 1997, 1998, 1999, and 2000, 
                under which a producer of wheat, feed grains, soybeans, 
                or such other commodity as the Secretary considers 
                appropriate may elect to receive insurance against loss 
                of revenue, as determined by the Secretary.
                    ``(B) Administration.--Revenue insurance under this 
                paragraph shall--

[[Page 110 STAT. 947]]

                          ``(i) be offered through reinsurance 
                      arrangements with private insurance companies;
                          ``(ii) offer at least a minimum level of 
                      coverage that is an alternative to catastrophic 
                      crop insurance;
                          ``(iii) be actuarially sound; and
                          ``(iv) require the payment of premiums and 
                      administrative fees by an insured producer.''.

SEC. 196. ADMINISTRATION AND OPERATION OF NONINSURED CROP ASSISTANCE 
            PROGRAM.

    (a) Operation and Administration of Program.--
            (1) In general.--In the case of an eligible crop described 
        in paragraph (2), the Secretary of Agriculture shall operate a 
        noninsured crop disaster assistance program to provide coverage 
        equivalent to the catastrophic risk protection otherwise 
        available under section 508(b) of the Federal Crop Insurance Act 
        (7 U.S.C. 1508(b)). The Secretary shall carry out this section 
        through the Consolidated Farm Service Agency (in this section 
        referred to as the ``Agency'').
            (2) Eligible crops.--
                    (A) In general.--In this section, the term 
                ``eligible crop'' means each commercial crop or other 
                agricultural commodity (except livestock)--
                          (i) for which catastrophic risk protection 
                      under section 508(b) of the Federal Crop Insurance 
                      Act (7 U.S.C. 1508(b)) is not available; and
                          (ii) that is produced for food or fiber.
                    (B) Crops specifically included.--The term 
                ``eligible crop'' shall include floricultural, 
                ornamental nursery, and Christmas tree crops, turfgrass 
                sod, seed crops, aquaculture (including ornamental 
                fish), and industrial crops.
            (3) Cause of loss.--To qualify for assistance under this 
        section, the losses of the noninsured commodity shall be due to 
        drought, flood, or other natural disaster, as determined by the 
        Secretary.

    (b) Application for Noninsured Crop Disaster Assistance.--
            (1) Timely application.--To be eligible for assistance under 
        this section, a producer shall submit an application for 
        noninsured crop disaster assistance at a local office of the 
        Department. The application shall be in such form, contain such 
        information, and be submitted at such time as the Secretary may 
        require.
            (2) Records.--A producer shall provide records, as required 
        by the Secretary, of crop acreage, acreage yields, and 
        production.
            (3) Acreage reports.--A producer shall provide reports on 
        acreage planted or prevented from being planted, as required by 
        the Secretary, by the designated acreage reporting date for the 
        crop and location as established by the Secretary.

    (c) Loss Requirements.--
            (1) Required area loss.--A producer of an eligible crop 
        shall not receive noninsured crop disaster assistance unless the 
        average yield for that crop, or an equivalent measure in the 
        event yield data are not available, in an area falls below 65 
        percent of the expected area yield, as established by the 
        Secretary.

[[Page 110 STAT. 948]]

            (2) Prevented planting.--Subject to paragraph (1), the 
        Secretary shall make a prevented planting noninsured crop 
        disaster assistance payment if the producer is prevented from 
        planting more than 35 percent of the acreage intended for the 
        eligible crop because of drought, flood, or other natural 
        disaster, as determined by the Secretary.
            (3) Reduced yields.--Subject to paragraph (1), the Secretary 
        shall make a reduced yield noninsured crop disaster assistance 
        payment to a producer if the total quantity of the eligible crop 
        that the producer is able to harvest on any farm is, because of 
        drought, flood, or other natural disaster as determined by the 
        Secretary, less than 50 percent of the expected individual yield 
        for the crop, as determined by the Secretary, factored for the 
        interest of the producer for the crop.

    (d) Payment.--The Secretary shall make available to a producer 
eligible for noninsured assistance under this section a payment computed 
by multiplying--
            (1) the quantity that is less than 50 percent of the 
        established yield for the crop; by
            (2)(A) in the case of each of the 1996 through 1998 crop 
        years, 60 percent of the average market price for the crop (or 
        any comparable coverage determined by the Secretary); or
            (B) in the case of each of the 1999 and subsequent crop 
        years, 55 percent of the average market price for the crop (or 
        any comparable coverage determined by the Secretary); by
            (3) a payment rate for the type of crop (as determined by 
        the Secretary) that--
                    (A) in the case of a crop that is produced with a 
                significant and variable harvesting expense, reflects 
                the decreasing cost incurred in the production cycle for 
                the crop that is--
                          (i) harvested;
                          (ii) planted but not harvested; and
                          (iii) prevented from being planted because of 
                      drought, flood, or other natural disaster (as 
                      determined by the Secretary); and
                    (B) in the case of a crop that is not produced with 
                a significant and variable harvesting expense, as 
                determined by the Secretary.

    (e) Yield Determinations.--
            (1) Establishment.--The Secretary shall establish farm 
        yields for purposes of providing noninsured crop disaster 
        assistance under this section.
            (2) Actual production history.--The Secretary shall 
        determine yield coverage using the actual production history of 
        the producer over a period of not less than the 4 previous 
        consecutive crop years and not more than 10 consecutive crop 
        years. Subject to paragraph (3), the yield for the year in which 
        noninsured crop disaster assistance is sought shall be equal to 
        the average of the actual production history of the producer 
        during the period considered.
            (3) Assignment of yield.--If a producer does not submit 
        adequate documentation of production history to determine a crop 
        yield under paragraph (2), the Secretary shall assign to the 
        producer a yield equal to not less than 65 percent of

[[Page 110 STAT. 949]]

        the transitional yield of the producer (adjusted to reflect 
        actual production reflected in the records acceptable to the 
        Secretary for continuous years), as specified in regulations 
        issued by the Secretary based on production history 
        requirements.
            (4) Prohibition on assigned yields in certain counties.--
                    (A) In general.--
                          (i) Documentation.--If sufficient data are 
                      available to demonstrate that the acreage of a 
                      crop in a county for the crop year has increased 
                      by more than 100 percent over any year in the 
                      preceding 7 crop years or, if data are not 
                      available, if the acreage of the crop in the 
                      county has increased significantly from the 
                      previous crop years, a producer must provide such 
                      detailed documentation of production costs, acres 
                      planted, and yield for the crop year for which 
                      benefits are being claimed as is required by the 
                      Secretary. If the Secretary determines that the 
                      documentation provided is not sufficient, the 
                      Secretary may require documenting proof that the 
                      crop, had the crop been harvested, could have been 
                      marketed at a reasonable price.
                          (ii) Prohibition.--Except as provided in 
                      subparagraph (B), a producer who produces a crop 
                      on a farm located in a county described in clause 
                      (i) may not obtain an assigned yield.
                    (B) Exception.--A crop or a producer shall not be 
                subject to this subsection if--
                          (i) the planted acreage of the producer for 
                      the crop has been inspected by a third party 
                      acceptable to the Secretary; or
                          (ii)(I) the County Executive Director and the 
                      State Executive Director recommend an exemption 
                      from the requirement to the Administrator of the 
                      Agency; and
                          (II) the Administrator approves the 
                      recommendation.
            (5) Limitation on receipt of subsequent assigned yield.--A 
        producer who receives an assigned yield for the current year of 
        a natural disaster because required production records were not 
        submitted to the local office of the Department shall not be 
        eligible for an assigned yield for the year of the next natural 
        disaster unless the required production records of the previous 
        1 or more years (as applicable) are provided to the local 
        office.
            (6) Yield variations due to different farming practices.--
        The Secretary shall ensure that noninsured crop disaster 
        assistance accurately reflects significant yield variations due 
        to different farming practices, such as between irrigated and 
        nonirrigated acreage.

    (f) Contract Payments.--A producer who has received a guaranteed 
payment for production, as opposed to delivery, of a crop pursuant to a 
contract shall have the production of the producer adjusted upward by 
the amount of the production equal to the amount of the contract payment 
received.
    (g) Use of Commodity Credit Corporation.--The Secretary may use the 
funds of the Commodity Credit Corporation to carry out this section.

[[Page 110 STAT. 950]]

    (h) Exclusions.--Noninsured crop disaster assistance under this 
section shall not cover losses due to--
            (1) the neglect or malfeasance of the producer;
            (2) the failure of the producer to reseed to the same crop 
        in those areas and under such circumstances where it is 
        customary to reseed; or
            (3) the failure of the producer to follow good farming 
        practices, as determined by the Secretary.

    (i) Payment and Income Limitations.--
            (1) Definitions.--In this subsection:
                    (A) Person.--The term ``person'' has the meaning 
                provided the term in regulations issued by the 
                Secretary. The regulations shall conform, to the extent 
                practicable, to the regulations defining the term 
                ``person'' issued under section 1001 of the Food 
                Security Act of 1985 (7 U.S.C. 1308).
                    (B) Qualifying gross revenues.--The term 
                ``qualifying gross revenues'' means--
                          (i) if a majority of the gross revenue of the 
                      person is received from farming, ranching, and 
                      forestry operations, the gross revenue from the 
                      farming, ranching, and forestry operations of the 
                      person; and
                          (ii) if less than a majority of the gross 
                      revenue of the person is received from farming, 
                      ranching, and forestry operations, the gross 
                      revenue of the person from all sources.
            (2) Payment limitation.--The total amount of payments that a 
        person shall be entitled to receive annually under this section 
        may not exceed $100,000.
            (3) Limitation on multiple benefits for same loss.--If a 
        producer who is eligible to receive benefits under this section 
        is also eligible to receive assistance for the same loss under 
        any other program administered by the Secretary, the producer 
        shall be required to elect whether to receive benefits under 
        this section or under the other program, but not both.
            (4) Income limitation.--A person who has qualifying gross 
        revenues in excess of the amount specified in section 2266(a) of 
        the Food, Agriculture, Conservation, and Trade Act of 1990 (7 
        U.S.C. 1421 note) (as in effect on November 28, 1990) during the 
        taxable year (as determined by the Secretary) shall not be 
        eligible to receive any noninsured assistance payment under this 
        section.
            (5) Regulations.--The Secretary shall issue regulations 
        prescribing such rules as the Secretary determines necessary to 
        ensure a fair and equitable application of section 1001 of the 
        Food Security Act of 1985 (7 U.S.C. 1308), the general payment 
        limitation regulations of the Secretary, and the limitations 
        established under this subsection.

    (j) Conforming Repeal.--Section 519 of the Federal Crop Insurance 
Act (7 U.S.C. 1519) is repealed.

[[Page 110 STAT. 951]]

                      TITLE II--AGRICULTURAL TRADE

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

SEC. 201. FOOD AID TO DEVELOPING COUNTRIES.

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

``SEC. 3. FOOD AID TO DEVELOPING COUNTRIES.

    ``(a) Policy.--In light of the Uruguay Round Agreement on 
Agriculture and the Ministerial Decision on Measures Concerning the 
Possible Negative Effects of the Reform Program on Least-Developed and 
Net-Food Importing Developing Countries, the United States reaffirms the 
commitment of the United States to providing food aid to developing 
countries.
    ``(b) Sense of Congress.--It is the sense of Congress that--
            ``(1) the President should initiate consultations with other 
        donor nations to consider appropriate levels of food aid 
        commitments to meet the legitimate needs of developing 
        countries; and
            ``(2) the United States should increase its contribution of 
        bona fide food assistance to developing countries consistent 
        with the Agreement on Agriculture.''.

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

SEC. 202. TRADE AND DEVELOPMENT ASSISTANCE.

    Section 101 of the Agricultural Trade Development and Assistance Act 
of 1954 (7 U.S.C. 1701) is amended--
            (1) by striking ``developing countries'' each place it 
        appears and inserting ``developing countries and private 
        entities''; and
            (2) in subsection (b), by inserting ``and entities'' before 
        the period at the end.

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

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

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

    ``(a) Priority.--In selecting agreements to be entered into under 
this title, the Secretary shall give priority to agreements providing 
for the export of agricultural commodities to developing countries 
that--
            ``(1) have the demonstrated potential to become commercial 
        markets for competitively priced United States agricultural 
        commodities;
            ``(2) are undertaking measures for economic development 
        purposes to improve food security and agricultural development, 
        alleviate poverty, and promote broad-based equitable and 
        sustainable development; and

[[Page 110 STAT. 952]]

            ``(3) demonstrate the greatest need for food.

    ``(b) Private Entities.--An agreement entered into under this title 
with a private entity shall require such security, or such other 
provisions as the Secretary determines necessary, to provide reasonable 
and adequate assurance of repayment of the financing extended to the 
private entity.
    ``(c) Agricultural Market Development Plan.--
            ``(1) Definition of agricultural trade organization.--In 
        this subsection, the term `agricultural trade organization' 
        means a United States agricultural trade organization that 
        promotes the export and sale of a United States agricultural 
        commodity and that does not stand to profit directly from the 
        specific sale of the commodity.
            ``(2) Plan.--The Secretary shall consider a developing 
        country for which an agricultural market development plan has 
        been approved under this subsection to have the demonstrated 
        potential to become a commercial market for competitively priced 
        United States agricultural commodities for the purpose of 
        granting a priority under subsection (a).
            ``(3) Requirements.--
                    ``(A) In general.--To be approved by the Secretary, 
                an agricultural market development plan shall--
                          ``(i) be submitted by a developing country or 
                      private entity, in conjunction with an 
                      agricultural trade organization;
                          ``(ii) describe a project or program for the 
                      development and expansion of a commercial market 
                      for a United States agricultural commodity in a 
                      developing country, and the economic development 
                      of the country, using funds derived from the sale 
                      of agricultural commodities received under an 
                      agreement described in section 101;
                          ``(iii) provide for any matching funds that 
                      are required by the Secretary for the project or 
                      program;
                          ``(iv) provide for a results-oriented means of 
                      measuring the success of the project or program; 
                      and
                          ``(v) provide for graduation to the use of 
                      non-Federal funds to carry out the project or 
                      program, consistent with requirements established 
                      by the Secretary.
                    ``(B) Agricultural trade organization.--The project 
                or program shall be designed and carried out by the 
                agricultural trade organization.
                    ``(C) Additional requirements.--An agricultural 
                market development plan shall contain such additional 
                requirements as are determined necessary by the 
                Secretary.
            ``(4) Administrative costs.--
                    ``(A) In general.--The Secretary may make funds made 
                available to carry out this title available for the 
                reimbursement of administrative expenses incurred by 
                agricultural trade organizations in developing, 
                implementing, and administering agricultural market 
                development plans, subject to such requirements and in 
                such amounts as the Secretary considers appropriate.
                    ``(B) Duration.--The funds may be made available to 
                agricultural trade organizations for the duration of the 
                applicable agricultural market development plan.

[[Page 110 STAT. 953]]

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

SEC. 204. TERMS AND CONDITIONS OF SALES.

    Section 103 of the Agricultural Trade Development and Assistance Act 
of 1954 (7 U.S.C. 1703) is amended--
            (1) in subsection (a)(2)(A)--
                    (A) by striking ``a recipient country to make''; and
                    (B) by striking ``such country'' and inserting ``the 
                appropriate country'';
            (2) in subsection (c), by striking ``less than 10 nor''; and
            (3) in subsection (d)--
                    (A) by striking ``recipient country'' and inserting 
                ``developing country or private entity''; and
                    (B) by striking ``7'' and inserting ``5''.

SEC. 205. USE OF LOCAL CURRENCY PAYMENT.

    Section 104 of the Agricultural Trade Development and Assistance Act 
of 1954 (7 U.S.C. 1704) is amended--
            (1) in subsection (a), by striking ``recipient country'' and 
        inserting ``developing country or private entity''; and
            (2) in subsection (c)--
                    (A) by striking ``recipient country'' each place it 
                appears and inserting ``appropriate developing 
                country''; and
                    (B) in paragraph (3), by striking ``recipient 
                countries'' and inserting ``appropriate developing 
                countries''.

SEC. 206. VALUE-ADDED FOODS.

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

SEC. 207. ELIGIBLE ORGANIZATIONS.

    (a) In General.--Section 202 of the Agricultural Trade Development 
and Assistance Act of 1954 (7 U.S.C. 1722) is amended--
            (1) by striking subsection (b) and inserting the following:

    ``(b) Nonemergency Assistance.--
            ``(1) In general.--The Administrator may provide 
        agricultural commodities for nonemergency assistance under this 
        title through eligible organizations (as described in subsection 
        (d)) that have entered into an agreement with the Administrator 
        to use the commodities in accordance with this title.
            ``(2) Limitation.--The Administrator may not deny a request 
        for funds submitted under this subsection because the program 
        for which the funds are requested--
                    ``(A) would be carried out by the eligible 
                organization in a foreign country in which the Agency 
                for International Development does not have a mission, 
                office, or other presence; or
                    ``(B) is not part of a development plan for the 
                country prepared by the Agency.''; and
            (2) in subsection (e)--
                    (A) in the subsection heading, by striking ``Private 
                Voluntary Organizations and Cooperatives'' and inserting 
                ``Eligible Organizations'';
                    (B) in paragraph (1)--

[[Page 110 STAT. 954]]

                          (i) by striking ``$13,500,000'' and inserting 
                      ``$28,000,000''; and
                          (ii) by striking ``private voluntary 
                      organizations and cooperatives to assist such 
                      organizations and cooperatives'' and inserting 
                      ``eligible organizations described in subsection 
                      (d), to assist the organizations'';
                    (C) by striking paragraph (2) and inserting the 
                following:
            ``(2) Request for funds.--To receive funds made available 
        under paragraph (1), an eligible organization described in 
        subsection (d) shall submit a request for the funds that is 
        subject to approval by the Administrator.''; and
                    (D) in paragraph (3), by striking ``a private 
                voluntary organization or cooperative, the Administrator 
                may provide assistance to that organization or 
                cooperative'' and inserting ``an eligible organization, 
                the Administrator may provide assistance to the eligible 
                organization''.

    (b) Conforming Amendments.--Section 207 of the Agricultural Trade 
Development and Assistance Act of 1954 (7 U.S.C. 1726a) is amended--
            (1) in subsection (a)(1), by striking ``a private voluntary 
        organization or cooperative'' each place it appears and 
        inserting ``an eligible organization''; and
            (2) in subsection (b)--
                    (A) in paragraph (1), by striking ``private 
                voluntary organizations and cooperatives'' and inserting 
                ``eligible organizations''; and
                    (B) in paragraph (2), by striking ``organizations, 
                cooperatives,'' and inserting ``eligible 
                organizations''.

SEC. 208. GENERATION AND USE OF FOREIGN CURRENCIES.

    Section 203 of the Agricultural Trade Development and Assistance Act 
of 1954 (7 U.S.C. 1723) is amended--
            (1) in subsection (a), by inserting ``, or in a country in 
        the same region,'' after ``in the recipient country'';
            (2) in subsection (b)--
                    (A) by inserting ``or in countries in the same 
                region,'' after ``in recipient countries,''; and
                    (B) by striking ``10 percent'' and inserting ``15 
                percent'';
            (3) in subsection (c), by inserting ``or in a country in the 
        same region,'' after ``in the recipient country,''; and
            (4) in subsection (d)(2), by inserting ``or within a country 
        in the same region'' after ``within the recipient country''.

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

    Section 204 of the Agricultural Trade Development and Assistance Act 
of 1954 (7 U.S.C. 1724) is amended--
            (1) in subsection (a)--
                    (A) in paragraph (1), by striking ``amount that'' 
                and all that follows through the period at the end and 
                inserting ``amount that for each of fiscal years 1996 
                through 2002 is not less than 2,025,000 metric tons.'';
                    (B) in paragraph (2), by striking ``amount that'' 
                and all that follows through the period at the end and 
                inserting ``amount that for each of fiscal years 1996 
                through 2002 is not less than 1,550,000 metric tons.''; 
                and

[[Page 110 STAT. 955]]

                    (C) in paragraph (3), by adding at the end the 
                following: ``No waiver shall be made before the 
                beginning of the applicable fiscal year.''; and
            (2) in subsection (b)(1), by inserting before the period at 
        the end the following: ``and that not less than 50 percent of 
        the quantity of the bagged commodities that are whole grain 
        commodities be bagged in the United States''.

SEC. 210. FOOD AID CONSULTATIVE GROUP.

    Section 205 of the Agricultural Trade Development and Assistance Act 
of 1954 (7 U.S.C. 1725) is amended--
            (1) in subsection (a), by striking ``private voluntary 
        organizations, cooperatives and indigenous non-governmental 
        organizations'' and inserting ``eligible organizations described 
        in section 202(d)(1)'';
            (2) in subsection (b)--
                    (A) in paragraph (2), by striking ``for 
                International Affairs and Commodity Programs'' and 
                inserting ``of Agriculture for Farm and Foreign 
                Agricultural Services'';
                    (B) in paragraph (4), by striking ``and'' at the 
                end;
                    (C) in paragraph (5), by striking the period at the 
                end and inserting ``; and''; and
                    (D) by adding at the end the following:
            ``(6) representatives from agricultural producer groups in 
        the United States.'';
            (3) in the second sentence of subsection (d), by inserting 
        ``(but at least twice per year)'' after ``when appropriate''; 
        and
            (4) in subsection (f), by striking ``1995'' and inserting 
        ``2002''.

SEC. 211. SUPPORT OF NONGOVERNMENTAL ORGANIZATIONS.

    (a) In General.--Section 306(b) of the Agricultural Trade 
Development and Assistance Act of 1954 (7 U.S.C. 1727e(b)) is amended--
            (1) in the subsection heading, by striking ``Indigenous Non-
        Governmental'' and inserting ``Nongovernmental''; and
            (2) by striking ``utilization of indigenous'' and inserting 
        ``utilization of''.

    (b) Conforming Amendment.--Section 402 of the Agricultural Trade 
Development and Assistance Act of 1954 (7 U.S.C. 1732) is amended by 
striking paragraph (6) and inserting the following:
            ``(6) Nongovernmental organization.--The term 
        `nongovernmental organization' means an organization that works 
        at the local level to solve development problems in a foreign 
        country in which the organization is located, except that the 
        term does not include an organization that is primarily an 
        agency or instrumentality of the government of the foreign 
        country.''.

SEC. 212. COMMODITY DETERMINATIONS.

    Section 401 of the Agricultural Trade Development and Assistance Act 
of 1954 (7 U.S.C. 1731) is amended--
            (1) by striking subsections (a) through (d) and inserting 
        the following:

    ``(a) Availability of Commodities.--No agricultural commodity shall 
be available for disposition under this Act if the Secretary determines 
that the disposition would reduce the domestic supply of the commodity 
below the supply needed to meet domestic requirements and provide 
adequate carryover (as determined by the Sec

[[Page 110 STAT. 956]]

retary), unless the Secretary determines that some part of the supply 
should be used to carry out urgent humanitarian purposes under this 
Act.'';
            (2) by redesignating subsections (e) and (f) as subsections 
        (b) and (c), respectively; and
            (3) in subsection (c) (as so redesignated), by striking 
        ``(e)(1)'' and inserting ``(b)(1)''.

SEC. 213. GENERAL PROVISIONS.

    Section 403 of the Agricultural Trade Development and Assistance Act 
of 1954 (7 U.S.C. 1733) is amended--
            (1) in subsection (b)--
                    (A) in the subsection heading, by striking 
                ``Consultations'' and inserting ``Impact on Local 
                Farmers and Economy''; and
                    (B) by striking ``consult with'' and all that 
                follows through ``other donor organizations to'';
            (2) in subsection (c)--
                    (A) by striking ``from countries''; and
                    (B) by striking ``for use'' and inserting ``or 
                use'';
            (3) in subsection (f)--
                    (A) by inserting ``or private entities, as 
                appropriate,'' after ``from countries''; and
                    (B) by inserting ``or private entities'' after 
                ``such countries''; and
            (4) in subsection (i)(2), by striking subparagraph (C).

SEC. 214. AGREEMENTS.

    Section 404 of the Agricultural Trade Development and Assistance Act 
of 1954 (7 U.S.C. 1734) is amended--
            (1) in subsection (a), by inserting ``with foreign 
        countries'' after ``Before entering into agreements'';
            (2) in subsection (b)(2)--
                    (A) by inserting ``with foreign countries'' after 
                ``with respect to agreements entered into''; and
                    (B) by inserting before the semicolon at the end the 
                following: ``and broad-based economic growth''; and
            (3) in subsection (c), by striking paragraph (1) and 
        inserting the following:
            ``(1) In general.--Agreements to provide assistance on a 
        multi-year basis to recipient countries or to eligible 
        organizations--
                    ``(A) may be made available under titles I and III; 
                and
                    ``(B) shall be made available under title II.''.

SEC. 215. USE OF COMMODITY CREDIT CORPORATION.

    Section 406 of the Agricultural Trade Development and Assistance Act 
of 1954 (7 U.S.C. 1736) is amended--
            (1) in subsection (a), by striking ``shall'' and inserting 
        ``may''; and
            (2) in subsection (b)--
                    (A) by striking ``this Act'' and inserting ``titles 
                II and III''; and
                    (B) by striking paragraph (4) and inserting the 
                following:

[[Page 110 STAT. 957]]

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

SEC. 216. ADMINISTRATIVE PROVISIONS.

    Section 407 of the Agricultural Trade Development and Assistance Act 
of 1954 (7 U.S.C. 1736a) is amended--
            (1) in subsection (a)--
                    (A) in paragraph (1), by inserting ``or private 
                entity that enters into an agreement under title I'' 
                after ``importing country''; and
                    (B) in paragraph (2), by adding at the end the 
                following: ``Resulting contracts may contain such terms 
                and conditions as the Secretary determines are necessary 
                and appropriate.'';
            (2) in subsection (c)--
                    (A) in paragraph (1)(A), by inserting ``importer 
                or'' before ``importing country''; and
                    (B) in paragraph (2)(A), by inserting ``importer 
                or'' before ``importing country'';
            (3) in subsection (d)--
                    (A) by striking paragraph (2) and inserting the 
                following:
            ``(2) Freight procurement.--Notwithstanding the Federal 
        Property and Administrative Services Act of 1949 (40 U.S.C. 471 
        et seq.) or other similar provisions of law relating to the 
        making or performance of Federal Government contracts, ocean 
        transportation under titles II and III may be procured on the 
        basis of full and open competitive procedures. Resulting 
        contracts may contain such terms and conditions as the 
        Administrator determines are necessary and appropriate.''; and
                    (B) by striking paragraph (4);
            (4) in subsection (g)(2)--
                    (A) in subparagraph (B), by striking ``and'' at the 
                end;
                    (B) in subparagraph (C), by striking the period at 
                the end and inserting ``; and''; and
                    (C) by adding at the end the following:
                    ``(D) an assessment of the progress towards 
                achieving food security in each country receiving food 
                assistance from the United States Government, with 
                special emphasis on the nutritional status of the 
                poorest populations in each country.''; and
            (5) by striking subsection (h).

SEC. 217. EXPIRATION DATE.

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

SEC. 218. REGULATIONS.

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

SEC. 219. INDEPENDENT EVALUATION OF PROGRAMS.

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

[[Page 110 STAT. 958]]

SEC. 220. AUTHORIZATION OF APPROPRIATIONS.

    Section 412 of the Agricultural Trade Development and Assistance Act 
of 1954 (7 U.S.C. 1736f) is amended--
            (1) by striking subsections (b) and (c) and inserting the 
        following:

    ``(b) Transfer of Funds.--
            ``(1) In general.--Except as provided in paragraph (2) and 
        notwithstanding any other provision of law, the President may 
        direct that up to 15 percent of the funds available for any 
        fiscal year for carrying out any title of this Act be used to 
        carry out any other title of this Act.
            ``(2) Title iii funds.--The President may direct that up to 
        50 percent of the funds available for any fiscal year for 
        carrying out title III be used to carry out title II.''; and
            (2) by redesignating subsections (d) and (e) as subsections 
        (c) and (d), respectively.

SEC. 221. COORDINATION OF FOREIGN ASSISTANCE PROGRAMS.

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

SEC. 222. MICRONUTRIENT FORTIFICATION PILOT PROGRAM.

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

``SEC. 415. <<NOTE: Establishment. Developing countries. 7 USC 1736g-
            2.>> MICRONUTRIENT FORTIFICATION PILOT PROGRAM.

    ``(a) In General.--Subject to the availability of practical 
technology and to cost effectiveness, not later than September 30, 1997, 
the Secretary, in consultation with the Administrator, shall establish a 
micronutrient fortification pilot program under this Act. The purpose of 
the program shall be to--
            ``(1) assist developing countries in correcting 
        micronutrient dietary deficiencies among segments of the 
        populations of the countries; and
            ``(2) encourage the development of technologies for the 
        fortification of whole grains and other commodities that are 
        readily transferable to developing countries.

    ``(b) Selection of Participating Countries.--From among the 
countries eligible for assistance under this Act, the Secretary may 
select not more than 5 developing countries to participate in the pilot 
program.
    ``(c) Fortification.--Under the pilot program, whole grains and 
other commodities made available to a developing country selected to 
participate in the pilot program may be fortified with 1 or more 
micronutrients (including vitamin A, iron, and iodine) with respect to 
which a substantial portion of the population in the country is 
deficient. The commodity may be fortified in the United States or in the 
developing country.
    ``(d) Termination of Authority.--The authority to carry out the 
pilot program established under this section shall terminate on 
September 30, 2002.''.

SEC. 223. USE OF CERTAIN LOCAL CURRENCY.

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

[[Page 110 STAT. 959]]

``SEC. 416. <<NOTE: 7 USC 1736g-3.>> USE OF CERTAIN LOCAL CURRENCY.

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

SEC. 224. FARMER-TO-FARMER PROGRAM.

    Section 501 of the Agricultural Trade Development and Assistance Act 
of 1954 (7 U.S.C. 1737) is amended--
            (1) in subsection (a), by striking paragraph (6) and 
        inserting the following:
            ``(6) to the extent that local currencies can be used to 
        meet the costs of a program established under this section, 
        augment funds of the United States that are available for such a 
        program through the use of foreign currencies that accrue from 
        the sale of agricultural commodities under this Act, and local 
        currencies generated from other types of foreign assistance 
        activities, within the country where the program is being 
        conducted.''; and
            (2) in subsection (c)--
                    (A) by striking ``0.2'' and inserting ``0.4'';
                    (B) by striking ``1991 through 1995'' and inserting 
                ``1996 through 2002''; and
                    (C) by striking ``0.1'' and inserting ``0.2''.

SEC. 225. FOOD SECURITY COMMODITY RESERVE.

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

  ``TITLE III <<NOTE: Food Security Commodity Reserve Act of 1996.>> --
FOOD SECURITY COMMODITY RESERVE

``SEC. 301. <<NOTE: 7 USC 1736f-1 note.>> SHORT TITLE.

    ``This title may be cited as the `Food Security Commodity Reserve 
Act of 1996'.

``SEC. 302. <<NOTE: 7 USC 1736f-1.>> ESTABLISHMENT OF COMMODITY RESERVE.

    ``(a) In General.--To provide for a reserve solely to meet emergency 
humanitarian food needs in developing countries, the Secretary of 
Agriculture (referred to in this title as the `Secretary') shall 
establish a reserve stock of wheat, rice, corn, or sorghum, or any 
combination of the commodities, totaling not more than 4,000,000 metric 
tons for use as described in subsection (c).
    ``(b) Commodities in Reserve.--
            ``(1) In general.--The reserve established under this 
        section shall consist of--
                    ``(A) wheat in the reserve established under the 
                Food Security Wheat Reserve Act of 1980 as of the date 
                of enactment of the Federal Agriculture Improvement and 
                Reform Act of 1996;
                    ``(B) wheat, rice, corn, and sorghum (referred to in 
                this section as `eligible commodities') acquired in 
                accordance with paragraph (2) to replenish eligible 
                commodities released from the reserve, including wheat 
                to replenish wheat released from the reserve established 
                under the Food Security Wheat Reserve Act of 1980 but 
                not replen

[[Page 110 STAT. 960]]

                ished as of the date of enactment of the Federal 
                Agriculture Improvement and Reform Act of 1996; and
                    ``(C) such rice, corn, and sorghum as the Secretary 
                may, at such time and in such manner as the Secretary 
                determines appropriate, acquire as a result of 
                exchanging an equivalent value of wheat in the reserve 
                established under this section.
            ``(2) Replenishment of reserve.--
                    ``(A) In general.--Subject to subsection (h), 
                commodities of equivalent value to eligible commodities 
                in the reserve established under this section may be 
                acquired--
                          ``(i) through purchases--
                                    ``(I) from producers; or
                                    ``(II) in the market, if the 
                                Secretary determines that the purchases 
                                will not unduly disrupt the market; or
                          ``(ii) by designation by the Secretary of 
                      stocks of eligible commodities of the Commodity 
                      Credit Corporation.
                    ``(B) Funds.--Any use of funds to acquire eligible 
                commodities through purchases from producers or in the 
                market to replenish the reserve must be authorized in an 
                appropriations Act.

    ``(c) Release of Eligible Commodities.--
            ``(1) Emergency assistance.--
                    ``(A) In general.--Notwithstanding paragraph (2), to 
                meet unanticipated need, the Secretary may release 
                eligible commodities in any fiscal year, without regard 
                to the availability of domestic supply of the 
                commodities, to provide emergency assistance to 
                developing countries under title II of the Agricultural 
                Trade Development and Assistance Act of 1954 (7 U.S.C. 
                1721 et seq.).
                    ``(B) Release for emergency assistance.--If the 
                eligible commodities needed to meet unanticipated need 
                cannot be made available in a timely manner under normal 
                means for obtaining eligible commodities for food 
                assistance because of unanticipated need for emergency 
                assistance as provided under section 202(a) of the 
                Agricultural Trade Development and Assistance Act of 
                1954 (7 U.S.C. 1722(a)), the Secretary may in any fiscal 
                year release from the reserve--
                          ``(i) up to 500,000 metric tons of wheat or 
                      the equivalent value of eligible commodities other 
                      than wheat; and
                          ``(ii) up to 500,000 metric tons of any 
                      eligible commodities under this paragraph that 
                      could have been released but were not released in 
                      prior fiscal years.
                    ``(C) Waiver of minimum tonnage requirements.--
                Nothing in this paragraph shall require a waiver under 
                section 204(a)(3) of the Agricultural Trade Development 
                and Assistance Act of 1954 (7 U.S.C. 1724(a)(3)) as a 
                prerequisite for the release of eligible commodities 
                under this paragraph.
            ``(2) Emergency food assistance.--Notwithstanding any other 
        provision of law, eligible commodities designated or acquired 
        for the reserve established under this section may

[[Page 110 STAT. 961]]

        be released by the Secretary to provide, on a donation or sale 
        basis, emergency food assistance to developing countries at such 
        time as the domestic supply of the eligible commodities is so 
        limited that quantities of the eligible commodities cannot be 
        made available for disposition under the Agricultural Trade 
        Development and Assistance Act of 1954 (7 U.S.C. 1691 et seq.) 
        (other than disposition for urgent humanitarian purposes under 
        section 401 of the Act (7 U.S.C. 1731)).
            ``(3) Processing of eligible commodities.--Eligible 
        commodities that are released from the reserve established under 
        this section may be processed in the United States and shipped 
        to a developing country when conditions in the recipient country 
        require processing.
            ``(4) Exchange.--The Secretary may exchange an eligible 
        commodity for another United States commodity of equal value, 
        including powdered milk, pulses, and vegetable oil.
            ``(5) Use of normal commercial practices.--To the maximum 
        extent practicable consistent with the fulfillment of the 
        purposes of this section and the effective and efficient 
        administration of this section, the Secretary shall use the 
        usual and customary channels, facilities, arrangements, and 
        practices of trade and commerce to carry out this subsection.

    ``(d) Management of Eligible Commodities.--The Secretary shall 
provide--
            ``(1) for the management of eligible commodities in the 
        reserve established under this section as to location and 
        quality of eligible commodities needed to meet emergency 
        situations; and
            ``(2) for the periodic rotation or replacement of stocks of 
        eligible commodities in the reserve to avoid spoilage and 
        deterioration of the commodities.

    ``(e) Treatment of Reserve Under Other Law.--Eligible commodities in 
the reserve established under this section shall not be--
            ``(1) considered a part of the total domestic supply 
        (including carryover) for the purpose of subsection (c) or for 
        the purpose of administering the Agricultural Trade Development 
        and Assistance Act of 1954 (7 U.S.C. 1691 et seq.); and
            ``(2) subject to any quantitative limitation on exports that 
        may be imposed under section 7 of the Export Administration Act 
        of 1979 (50 U.S.C. App. 2406).

    ``(f) Use of Commodity Credit Corporation.--
            ``(1) In general.--Subject to the limitations provided in 
        this section, the funds, facilities, and authorities of the 
        Commodity Credit Corporation shall be used by the Secretary in 
        carrying out this section, except that any restriction 
        applicable to the acquisition, storage, or disposition of 
        eligible commodities owned or controlled by the Commodity Credit 
        Corporation shall not apply.
            ``(2) Reimbursement.--
                    ``(A) In general.--The Commodity Credit Corporation 
                shall be reimbursed for the release of eligible 
                commodities from funds made available to carry out the 
                Agricultural Trade Development and Assistance Act of 
                1954 (7 U.S.C. 1691 et seq.).
                    ``(B) Basis for reimbursement.--The reimbursement 
                shall be made on the basis of the lesser of--

[[Page 110 STAT. 962]]

                          ``(i) the actual costs incurred by the 
                      Commodity Credit Corporation with respect to the 
                      eligible commodity; or
                          ``(ii) the export market price of the eligible 
                      commodity (as determined by the Secretary) as of 
                      the time the eligible commodity is released from 
                      the reserve.
                    ``(C) Source of funds.--The reimbursement may be 
                made from funds appropriated for subsequent fiscal 
                years.

    ``(g) Finality of Determination.--Any determination by the Secretary 
under this section shall be final.
    ``(h) Termination of Authority.--
            ``(1) In general.--The authority to replenish stocks of 
        eligible commodities to maintain the reserve established under 
        this section shall terminate on September 30, 2002.
            ``(2) Disposal of eligible commodities.--Eligible 
        commodities remaining in the reserve after September 30, 2002, 
        shall be disposed of by release for use in providing for 
        emergency humanitarian food needs in developing countries as 
        provided in this section.''.

    (b) Conforming Amendment.--Section 208(d) of the Agricultural Trade 
Suspension Adjustment Act of 1980 (7 U.S.C. 4001(d)) is amended by 
striking paragraph (2) and inserting the following:
            ``(2) Applicability of certain provisions.--Subsections (c), 
        (d), (e), and (f)(2) of section 302 of the Food Security 
        Commodity Reserve Act of 1996 shall apply to commodities in any 
        reserve established under paragraph (1), except that the 
        references to `eligible commodities' in the subsections shall be 
        deemed to be references to `agricultural commodities'.''.

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

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

SEC. 227. FOOD FOR PROGRESS PROGRAM.

    The Food for Progress Act of 1985 (7 U.S.C. 1736o) is 
amended--
            (1) in subsection (b)--
                    (A) in paragraph (1)--
                          (i) by striking ``(b)(1)'' and inserting 
                      ``(b)''; and
                          (ii) in the first sentence, by inserting 
                      ``intergovernmental organizations,'' after 
                      ``cooperatives,''; and
                    (B) by striking paragraph (2);
            (2) in subsection (e)(4), by striking ``203'' and inserting 
        ``406'';
            (3) in subsection (f)--
                    (A) in paragraph (1)(B), by striking ``in the case 
                of the independent states of the former Soviet Union,'';
                    (B) by striking paragraph (2);
                    (C) in paragraph (4), by inserting ``for each of 
                fiscal years 1996 through 2002'' after ``may be used''; 
                and
                    (D) by redesignating paragraphs (3) through (5) as 
                paragraphs (2) through (4), respectively;
            (4) in subsection (g), by striking ``1995'' and inserting 
        ``2002'';
            (5) in subsection (j), by striking ``shall'' and inserting 
        ``may'';
            (6) in subsection (k), by striking ``1995'' and inserting 
        ``2002'';

[[Page 110 STAT. 963]]

            (7) in subsection (l)(1)--
                    (A) by striking ``1991 through 1995'' and inserting 
                ``1996 through 2002''; and
                    (B) by inserting ``, and to provide technical 
                assistance for monetization programs,'' after 
                ``monitoring of food assistance programs''; and
            (8) in subsection (m)--
                    (A) by striking ``with respect to the independent 
                states of the former Soviet Union'';
                    (B) by striking ``private voluntary organizations 
                and cooperatives'' each place it appears and inserting 
                ``agricultural trade organizations, intergovernmental 
                organizations, private voluntary organizations, and 
                cooperatives''; and
                    (C) in paragraph (2), by striking ``in the 
                independent states''.

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

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

SEC. 229. STIMULATION OF FOREIGN PRODUCTION.

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

        Subtitle B--Amendments to Agricultural Trade Act of 1978

SEC. 241. AGRICULTURAL EXPORT PROMOTION STRATEGY.

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

``SEC. 103. AGRICULTURAL EXPORT PROMOTION STRATEGY.

    ``(a) In General.--The Secretary shall develop a strategy for 
implementing Federal agricultural export promotion programs that takes 
into account the new market opportunities for agricultural products, 
including opportunities that result from--
            ``(1) the North American Free Trade Agreement and the 
        Uruguay Round Agreements;
            ``(2) any accession to membership in the World Trade 
        Organization;
            ``(3) the continued economic growth in the Pacific Rim; and
            ``(4) other developments.

    ``(b) Purpose of Strategy.--The strategy developed under subsection 
(a) shall encourage the maintenance, development, and expansion of 
export markets for United States agricultural commodities and related 
products, including high-value and value-added products.
    ``(c) Goals of Strategy.--The strategy developed under subsection 
(a) shall have the following goals:
            ``(1) Increase the value of United States agricultural 
        exports each year.
            ``(2) Increase the value of United States agricultural 
        exports each year at a faster rate than the rate of increase in 
        the value of overall world export trade in agricultural 
        products.

[[Page 110 STAT. 964]]

            ``(3) Increase the value of United States high-value and 
        value-added agricultural exports each year.
            ``(4) Increase the value of United States high-value and 
        value-added agricultural exports each year at a faster rate than 
        the rate of increase in the value of overall world export trade 
        in high-value and value-added agricultural products.
            ``(5) Ensure that to the extent practicable--
                    ``(A) all obligations undertaken in the Uruguay 
                Round Agreement on Agriculture that significantly 
                increase access for United States agricultural 
                commodities are implemented to the extent required by 
                the Uruguay Round Agreements; or
                    ``(B) applicable United States laws are used to 
                secure United States rights under the Uruguay Round 
                Agreement on Agriculture.

    ``(d) Priority Markets.--
            ``(1) Identification of markets.--In developing the strategy 
        required under subsection (a), the Secretary shall annually 
        identify as priority markets--
                    ``(A) those markets in which imports of agricultural 
                products show the greatest potential for increase; and
                    ``(B) those markets in which, with the assistance of 
                Federal export promotion programs, exports of United 
                States agricultural products show the greatest potential 
                for increase.
            ``(2) <<NOTE: President.>> Identification of supporting 
        offices.--The President shall identify annually in the budget of 
        the United States Government submitted under section 1105 of 
        title 31, United States Code, each overseas office of the 
        Foreign Agricultural Service that provides assistance to United 
        States exporters in each of the priority markets identified 
        under paragraph (1).''.

    (b) Sense of Congress.--It is the sense of Congress that--
            (1) the Committee on Agriculture of the House of 
        Representatives and the Committee on Agriculture, Nutrition, and 
        Forestry of the Senate should conduct a thorough review of 
        agricultural export and food aid programs not later than 
        December 31, 1998; and
            (2) the review should examine what changes, if any, need to 
        be made in the programs as a result of the effects of the 
        Agricultural Market Transition Act, the Uruguay Round 
        Agreements, changing world market conditions, and such other 
        factors as the committees consider appropriate.

    (c) Elimination of Report.--
            (1) In general.--Section 601 of the Agricultural Trade Act 
        of 1978 (7 U.S.C. 5711) is repealed.
            (2) Conforming amendment.--The last sentence of section 603 
        of the Agricultural Trade Act of 1978 (7 U.S.C. 5713) is amended 
        by striking ``, in a consolidated report,'' and all that follows 
        through ``section 601'' and inserting ``or in a consolidated 
        report''.

SEC. 242. IMPLEMENTATION OF COMMITMENTS UNDER URUGUAY ROUND AGREEMENTS.

    (a) In General.--Title I of the Agricultural Trade Act of 1978 (7 
U.S.C. 5601 et seq.) is amended by adding at the end the following:

[[Page 110 STAT. 965]]

``SEC. 106. <<NOTE: Evaluation. 7 USC 5606.>> IMPLEMENTATION OF 
            COMMITMENTS UNDER URUGUAY ROUND AGREEMENTS.

    ``Not later than September 30 of each year, the Secretary shall 
evaluate whether the obligations undertaken by foreign countries under 
the Uruguay Round Agreement on Agriculture are being fully implemented. 
If the Secretary has reason to believe (based on the evaluation) that 
any foreign country, by not implementing the obligations of the country, 
may be significantly constraining an opportunity for United States 
agricultural exports, the Secretary shall--
            ``(1) submit the evaluation to the United States Trade 
        Representative; and
            ``(2) transmit a copy of the evaluation to the Committee on 
        Agriculture, and the Committee on Ways and Means, of the House 
        of Representatives and the Committee on Agriculture, Nutrition, 
        and Forestry, and the Committee on Finance, of the Senate.''.

    (b) Monitoring Compliance With Sanitary and Phytosanitary 
Measures.--Section 414 of the Agricultural Trade Act of 1978 (7 U.S.C. 
5674) is amended by adding at the end the following:
    ``(c) Monitoring Compliance With Sanitary and Phytosanitary 
Measures.--The Secretary shall monitor the compliance of World Trade 
Organization member countries with the sanitary and phytosanitary 
measures of the Agreement on Agriculture of the Uruguay Round of 
Multilateral Trade Negotiations of the General Agreement on Tariffs and 
Trade. If the Secretary has reason to believe that any country may have 
failed to meet the commitment on sanitary and phytosanitary measures 
under the Agreement in a manner that adversely impacts the exports of a 
United States agricultural commodity, the Secretary shall--
            ``(1) provide such information to the United States Trade 
        Representative of the circumstances surrounding the matter 
        arising under this subsection; and
            ``(2) <<NOTE: Reports.>> with respect to any such 
        circumstances that the Secretary considers to have a continuing 
        adverse effect on United States agricultural exports, report to 
        the Committee on Agriculture, and the Committee on Ways and 
        Means, of the House of Representatives and the Committee on 
        Agriculture, Nutrition, and Forestry, and the Committee on 
        Finance, of the Senate--
                    ``(A) that a country may have failed to meet the 
                sanitary and phytosanitary commitments; and
                    ``(B) any notice given by the Secretary to the 
                United States Trade Representative.''.

SEC. 243. EXPORT CREDITS.

    (a) Export Credit Guarantee Program.--Section 202 of the 
Agricultural Trade Act of 1978 (7 U.S.C. 5622) is amended--
            (1) in subsection (a)--
                    (A) by striking ``Guarantees.--The'' and inserting 
                the following: ``Guarantees.--
            ``(1) In general.--The''; and
                    (B) by adding at the end the following:
            ``(2) Supplier credits.--In carrying out this section, the 
        Commodity Credit Corporation may issue guarantees for the

[[Page 110 STAT. 966]]

        repayment of credit made available for a period of not more than 
        180 days by a United States exporter to a buyer in a foreign 
        country.'';
            (2) in subsection (f)--
                    (A) by striking ``(f) Restrictions.--The'' and 
                inserting the following:

    ``(f) Restrictions.--
            ``(1) In general.--The''; and
                    (B) by adding at the end the following:
            ``(2) Criteria for determination.--In making the 
        determination required under paragraph (1) with respect to 
        credit guarantees under subsection (b) for a country, the 
        Secretary may consider, in addition to financial, macroeconomic, 
        and monetary indicators--
                    ``(A) whether an International Monetary Fund standby 
                agreement, Paris Club rescheduling plan, or other 
                economic restructuring plan is in place with respect to 
                the country;
                    ``(B) whether the country is addressing issues such 
                as--
                          ``(i) the convertibility of the currency of 
                      the country;
                          ``(ii) adequate legal protection for foreign 
                      investments;
                          ``(iii) the viability of the financial markets 
                      of the country; and
                          ``(iv) adequate legal protection for the 
                      private property rights of citizens of the 
                      country; or
                    ``(C) any other factors that are relevant to the 
                ability of the country to service the debt of the 
                country.'';
            (3) by striking subsection (h) and inserting the following:

    ``(h) United States Agricultural Commodities.--The Commodity Credit 
Corporation shall finance or guarantee under this section only United 
States agricultural commodities.'';
            (4) in subsection (i)--
                    (A) by striking paragraph (1);
                    (B) by striking ``Institutions.--A financial'' and 
                inserting the following: ``Institutions.--
            ``(1) In general.--A financial'';
                    (C) by striking ``(2) is'' and inserting the 
                following:
                    ``(A) is'';
                    (D) by striking ``(3) is'' and inserting the 
                following:
                    ``(B) is''; and
                    (E) by adding at the end the following:
            ``(2) Third country banks.--The Commodity Credit Corporation 
        may guarantee under subsections (a) and (b) the repayment of 
        credit made available to finance an export sale irrespective of 
        whether the obligor is located in the country to which the 
        export sale is destined.''; and
            (5) by striking subsection (k) and inserting the following:

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

[[Page 110 STAT. 967]]

        that the balance is issued to promote the export of bulk or raw 
        agricultural commodities.
            ``(2) Limitation.--The percentage requirement of paragraph 
        (1) shall apply for a fiscal year to the extent that a reduction 
        in the total amount of credit guarantees issued for the fiscal 
        year is not required to meet the percentage requirement.''.

    (b) Funding Levels.--Section 211 of the Agricultural Trade Act of 
1978 (7 U.S.C. 5641) is amended by striking subsection (b) and inserting 
the following:
    ``(b) Export Credit Guarantee Programs.--
            ``(1) Export credit guarantees.--The Commodity Credit 
        Corporation shall make available for each of fiscal years 1996 
        through 2002 not less than $5,500,000,000 in credit guarantees 
        under subsections (a) and (b) of section 202.
            ``(2) Limitation on origination fee.--Notwithstanding any 
        other provision of law, the Secretary may not charge an 
        origination fee with respect to any credit guarantee transaction 
        under section 202(a) in excess of an amount equal to 1 percent 
        of the amount of credit to be guaranteed under the transaction, 
        except with respect to an export credit guarantee transaction 
        pursuant to section 1542(b) of the Food, Agriculture, 
        Conservation, and Trade Act of 1990 (Public Law 101-624; 7 
        U.S.C. 5622 note).''.

    (c) Definition of United States Agricultural Commodity.--Section 
102(7) of the Agricultural Trade Act of 1978 (7 U.S.C. 5602(7)) is 
amended by striking subparagraphs (A) and (B) and inserting the 
following:
                    ``(A) an agricultural commodity or product entirely 
                produced in the United States; or
                    ``(B) a product of an agricultural commodity--
                          ``(i) 90 percent or more of the agricultural 
                      components of which by weight, excluding packaging 
                      and added water, is entirely produced in the 
                      United States; and
                          ``(ii) that the Secretary determines to be a 
                      high value agricultural product.''.

    (d) <<NOTE: 7 USC 5622 note.>> Regulations.--Not later than 180 days 
after the date of enactment of this Act, the Secretary of Agriculture 
shall issue regulations to carry out the amendments made by this 
section.

SEC. 244. MARKET ACCESS PROGRAM.

    (a) Change of Name.--
            (1) In general.--Section 203 of the Agricultural Trade Act 
        of 1978 (7 U.S.C. 5623) is amended--
                    (A) in the section heading, by striking ``market 
                promotion program'' and inserting ``market access 
                program''; and
                    (B) by striking ``marketing promotion program'' each 
                place it appears and inserting ``market access 
                program''.
            (2) Conforming amendments.--
                    (A) Section 1302 of the Omnibus Budget 
                Reconciliation Act of 1993 (Public Law 103-66; 7 U.S.C. 
                5623) is 
                amended--
                          (i) in the section heading, by striking 
                      ``market promotion program'' and inserting 
                      ``market access program''; and

[[Page 110 STAT. 968]]

                          (ii) in subsection (b), <<NOTE: 7 USC 5623 
                      note.>> by striking ``market promotion program'' 
                      each place it appears and inserting ``market 
                      access program''.
                    (B) Section 211(c) of the Agricultural Trade Act of 
                1978 (7 U.S.C. 5641(c)) is amended--
                          (i) in the subsection heading, by striking 
                      ``Marketing Promotion Programs'' and inserting 
                      ``Market Access Programs'';
                          (ii) by striking ``market promotion 
                      activities'' and inserting ``market access 
                      activities'';
                          (iii) in paragraph (1), by striking ``market 
                      development program'' and inserting ``market 
                      access program''; and
                          (iv) in paragraph (2), by striking ``marketing 
                      promotion program'' and inserting ``market access 
                      program''.

    (b) Use of Funds.--Section 203(f) of the Agricultural Trade Act of 
1978 (7 U.S.C. 5623(f)) is amended by adding at the end the following:
            ``(4) Use of funds.--Funds made available to carry out this 
        section--
                    ``(A) shall not be used to provide direct assistance 
                to any foreign for-profit corporation for the 
                corporation's use in promoting foreign-produced 
                products;
                    ``(B) shall not be used to provide direct assistance 
                to any for-profit corporation that is not recognized as 
                a small-business concern described in section 3(a) of 
                the Small Business Act (15 U.S.C. 632(a)), excluding--
                          ``(i) a cooperative;
                          ``(ii) an association described in the first 
                      section of the Act entitled `An Act To authorize 
                      association of producers of agricultural 
                      products', approved February 18, 1922 (7 U.S.C. 
                      291); and
                          ``(iii) a nonprofit trade association; and
                    ``(C) may be used by a United States trade 
                association, cooperative, or small business for 
                individual branded promotional activity related to a 
                United States branded product, if the beneficiaries of 
                the activity have provided funds for the activity in an 
                amount that is at least equivalent to the amount of 
                assistance provided under this section.''.

    (c) Funding.-- <<NOTE: Effective date.>> Effective October 1, 1995, 
section 211(c)(1) of the Agricultural Trade Act of 1978 (7 U.S.C. 
5641(c)(1)) is 
amended--
            (1) by striking ``and'' after ``1991 through 1993,''; and
            (2) by striking ``through 1997,'' and inserting ``through 
        1995, and not more than $90,000,000 for each of fiscal years 
        1996 through 2002,''.

SEC. 245. EXPORT ENHANCEMENT PROGRAM.

    (a) In General.-- <<NOTE: Effective date.>> Effective October 1, 
1995, section 301(e) of the Agricultural Trade Act of 1978 (7 U.S.C. 
5651(e)) is amended by striking paragraph (1) and inserting the 
following:
            ``(1) In general.--The Commodity Credit Corporation shall 
        make available to carry out the program established under this 
        section not more than--
                    ``(A) $350,000,000 for fiscal year 1996;
                    ``(B) $250,000,000 for fiscal year 1997;

[[Page 110 STAT. 969]]

                    ``(C) $500,000,000 for fiscal year 1998;
                    ``(D) $550,000,000 for fiscal year 1999;
                    ``(E) $579,000,000 for fiscal year 2000;
                    ``(F) $478,000,000 for fiscal year 2001; and
                    ``(G) $478,000,000 for fiscal year 2002.''.

    (b) Priority Funding for Intermediate Products.--Section 301 of the 
Agricultural Trade Act of 1978 (7 U.S.C. 5651) is amended by adding at 
the end the following:
    ``(h) Priority Funding for Intermediate Products.--
            ``(1) <<NOTE: Effective date.>> In general.--Effective 
        beginning in fiscal year 1996, and consistent, as determined by 
        the Secretary, with the obligations and reduction commitments 
        undertaken by the United States under the Uruguay Round 
        Agreements, the Secretary may make available not more than 
        $100,000,000 for each fiscal year under this section for the 
        sale of intermediate agricultural products in sufficient 
        quantities to attain the volume of export sales consistent with 
        the volume of intermediate agricultural products exported by the 
        United States during the Uruguay Round base period years of 1986 
        through 1990.
            ``(2) Additional assistance.--Notwithstanding paragraph (1), 
        if the export sale of any intermediate agricultural product 
        attains the volume of export sales consistent with the volume of 
        the intermediate agricultural product exported by the United 
        States during the Uruguay Round base period years of 1986 
        through 1990, the Secretary may make available additional 
        amounts under this section for the encouragement of export sales 
        of the intermediate agricultural product.''.

SEC. 246. ARRIVAL CERTIFICATION.

    Section 401 of the Agricultural Trade Act of 1978 (7 U.S.C. 5661) is 
amended by striking subsection (a) and inserting the following:
    ``(a) <<NOTE: Records.>> Arrival Certification.--With respect to a 
commodity provided, or for which financing or a credit guarantee or 
other assistance is made available, under a program authorized in 
section 201, 202, or 301, the Commodity Credit Corporation shall require 
the exporter of the commodity to maintain records of an official or 
customary commercial nature or other documents as the Secretary may 
require, and shall allow representatives of the Commodity Credit 
Corporation access to the records or documents as needed, to verify the 
arrival of the commodity in the country that is the intended destination 
of the commodity.''.

SEC. 247. COMPLIANCE.

    Section 402(a) of the Agricultural Trade Act of 1978 (7 U.S.C. 
5662(a)) is amended--
            (1) by striking paragraph (2); and
            (2) by redesignating paragraph (3) as paragraph (2).

SEC. 248. REGULATIONS.

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

SEC. 249. TRADE COMPENSATION AND ASSISTANCE PROGRAMS.

    Subtitle B of title IV of the Agricultural Trade Act of 1978 (7 
U.S.C. 5671 et seq.) is amended by adding at the end the following:

[[Page 110 STAT. 970]]

``SEC. 417. <<NOTE: 7 USC 5677.>> TRADE COMPENSATION AND ASSISTANCE 
            PROGRAMS.

    ``(a) In General.--Except as provided in subsection (f), 
notwithstanding any other provision of law, if, after the date of 
enactment of this section, the President or any other member of the 
executive branch causes exports from the United States to any country to 
be unilaterally suspended for reasons of national security or foreign 
policy, and if within 90 days after the date on which the suspension is 
imposed on United States exports no other country with an agricultural 
economic interest agrees to participate in the suspension, the Secretary 
shall carry out a trade compensation assistance program in accordance 
with this section (referred to in this section as a `program').
    ``(b) Compensation or Provision of Funds.--Under a program, the 
Secretary shall, based on an evaluation by the Secretary of the method 
most likely to produce the greatest compensatory benefit for producers 
of the commodity involved in the suspension--
            ``(1) compensate producers of the commodity by making 
        payments available to producers, as provided by subsection 
        (c)(1); or
            ``(2) make available an amount of funds calculated under 
        subsection (c)(2), to promote agricultural exports or provide 
        agricultural commodities to developing countries under any 
        authorities available to the Secretary.

    ``(c) Determination of Amount of Compensation or Funds.--
            ``(1) Compensation.--If the Secretary makes payments 
        available to producers under subsection (b)(1), the amount of 
        the payment shall be determined by the Secretary based on the 
        Secretary's estimate of the loss suffered by producers of the 
        commodity involved due to any decrease in the price of the 
        commodity as a result of the suspension.
            ``(2) Determination of amount of funds.--For each fiscal 
        year of a program, the amount of funds made available under 
        subsection (b)(2) shall be equal to 90 percent of the average 
        annual value of United States agricultural exports to the 
        country with respect to which exports are suspended during the 
        most recent 3 years prior to the suspension for which data are 
        available.

    ``(d) Duration of Program.--For each suspension of exports for which 
a program is implemented under this section, funds shall be made 
available under subsection (b) for each fiscal year or part of a fiscal 
year for which the suspension is in effect, but not to exceed 3 fiscal 
years.
    ``(e) Commodity Credit Corporation.--The Secretary shall use funds 
of the Commodity Credit Corporation to carry out this section.
    ``(f) Exception to Carrying Out a Program.--This section shall not 
apply to any suspension of trade due to a war or armed hostility.
    ``(g) Partial Year Embargoes.--If the Secretary makes funds 
available under subsection (b)(2), regardless of whether an embargo is 
in effect for only part of a fiscal year, the full amount of funds as 
calculated under subsection (c)(2) shall be made available under a 
program for the fiscal year. If the Secretary determines that making the 
required amount of funds available in a partial fiscal year is 
impracticable, the Secretary may make all or part of the funds required 
to be made available in the following fiscal year

[[Page 110 STAT. 971]]

(in addition to any funds otherwise required under a program to be made 
available in the following fiscal year).
    ``(h) Short Supply Embargoes.--If the President or any other member 
of the executive branch causes exports to be suspended based on a 
determination of short supply, the Secretary shall carry out section 
1002 of the Food and Agriculture Act of 1977 (7 U.S.C. 1310).''.

SEC. 250. FOREIGN AGRICULTURAL SERVICE.

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

``SEC. 503. DUTIES OF FOREIGN AGRICULTURAL SERVICE.

    ``The Service shall assist the Secretary in carrying out the 
agricultural trade policy and international cooperation policy of the 
United States by--
            ``(1) acquiring information pertaining to agricultural 
        trade;
            ``(2) carrying out market promotion and development 
        activities;
            ``(3) providing agricultural technical assistance and 
        training; and
            ``(4) carrying out the programs authorized under this Act, 
        the Agricultural Trade Development and Assistance Act of 1954 (7 
        U.S.C. 1691 et seq.), and other Acts.''.

SEC. 251. REPORTS.

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

SEC. 252. FOREIGN MARKET DEVELOPMENT COOPERATOR PROGRAM.

    The Agricultural Trade Act of 1978 (7 U.S.C. 5601 et seq.) is 
amended by adding at the end the following:

       ``TITLE VII--FOREIGN MARKET DEVELOPMENT COOPERATOR PROGRAM

``SEC. 701. <<NOTE: 7 USC 5721.>> DEFINITION OF ELIGIBLE TRADE 
            ORGANIZATION.

    ``In this title, the term `eligible trade organization' means a 
United States trade organization that--
            ``(1) promotes the export of 1 or more United States 
        agricultural commodities or products; and
            ``(2) does not have a business interest in or receive 
        remuneration from specific sales of agricultural commodities or 
        products.

``SEC. 702. <<NOTE: Establishment. 7 USC 5722.>> FOREIGN MARKET 
            DEVELOPMENT COOPERATOR PROGRAM.

    ``(a) In General.--The Secretary shall establish and, in cooperation 
with eligible trade organizations, carry out a foreign market 
development cooperator program to maintain and develop foreign markets 
for United States agricultural commodities and products.
    ``(b) Administration.--Funds made available to carry out this title 
shall be used only to provide--
            ``(1) cost-share assistance to an eligible trade 
        organization under a contract or agreement with the 
        organization; and

[[Page 110 STAT. 972]]

            ``(2) assistance for other costs that are necessary or 
        appropriate to carry out the foreign market development 
        cooperator program, including contingent liabilities that are 
        not otherwise funded.

``SEC. 703. <<NOTE: 7 USC 5723.>> AUTHORIZATION OF APPROPRIATIONS.

    ``There are authorized to be appropriated to carry out this title 
such sums as may be necessary for each of fiscal years 1996 through 
2002.''.

         Subtitle C--Miscellaneous Agricultural Trade Provisions

SEC. 261. <<NOTE: 7 USC 5678.>> EDWARD R. MADIGAN UNITED STATES 
            AGRICULTURAL EXPORT EXCELLENCE AWARD.

    (a) Findings.--Congress finds that--
            (1) United States producers of agricultural products are 
        some of the most productive and efficient producers of 
        agricultural products in the world;
            (2) continued growth and expansion of markets for United 
        States agricultural exports is crucial to the continued 
        development and economic well-being of rural areas of the United 
        States and the agricultural sector of the United States economy;
            (3) in recent years, United States agricultural exports have 
        steadily increased, surpassing $54,000,000,000 in value in 1995;
            (4) as United States agricultural producers move toward a 
        market-oriented system in which planting and other decisions by 
        producers are driven by national and international market 
        signals, developing new and expanding agricultural export 
        markets is vital to maintaining a vibrant and healthy 
        agricultural sector and rural economy; and
            (5) a United States agricultural export excellence award 
        will increase United States agricultural exports by--
                    (A) identifying efforts of United States entities to 
                develop and expand markets for United States 
                agricultural exports through the development of new 
                products and services and through the use of innovative 
                marketing techniques;
                    (B) recognizing achievements of those who have 
                exhibited or supported entrepreneurial efforts to expand 
                and create new markets for United States agricultural 
                exports or increase the volume or value of United States 
                agricultural exports; and
                    (C) disseminating information on successful methods 
                used to develop and expand markets for United States 
                agricultural exports.

    (b) Establishment.--There is established the Edward R. Madigan 
United States Agricultural Export Excellence Award, which shall be 
evidenced by a medal bearing the inscription ``Edward R. Madigan United 
States Agricultural Export Excellence Award''. The medal shall be of 
such design and materials and bear such additional inscriptions as the 
Secretary of Agriculture (referred to in this section as the 
``Secretary'') may prescribe.
    (c) <<NOTE: President.>> Selection of Recipient.--The President or 
the Secretary (on the basis of recommendations received from the board 
established under subsection (h)) shall periodically provide the award

[[Page 110 STAT. 973]]

to companies and other entities that in the judgment of the President or 
the Secretary substantially encourage entrepreneurial efforts in the 
food and agriculture sector for advancing United States agricultural 
exports.

    (d) <<NOTE: President.>> Presentation of Award.--The presentation of 
the award shall be made by the President or the Secretary with such 
ceremonies as the President or the Secretary considers proper.

    (e) Publication of Award.--An entity to which an award is made under 
this section may publicize the receipt of the award by the entity and 
use the award in advertising of the entity.
    (f) Categories for Which Award May Be Given.--Separate awards shall 
be made to qualifying entities in each of the following categories:
            (1) Development of new products or services for agricultural 
        export markets.
            (2) Development of new agricultural export markets.
            (3) Creative marketing of products or services in 
        agricultural export markets.

    (g) Criteria for Qualification.--An entity may qualify for an award 
under this section only if the entity--
            (1)(A) applies to the board established under subsection (h) 
        in writing for the award; or
            (B) is recommended for the award by a Governor of a State;
            (2)(A) has exhibited significant entrepreneurial effort to 
        create new markets for United States agricultural exports or 
        increase United States agricultural exports; or
            (B) has provided significant assistance to others in an 
        effort to create new markets for United States agricultural 
        exports or increase United States agricultural exports;
            (3) has not received another award in the same category 
        under subsection (f) during the preceding 5-year period; and
            (4) meets such other requirements and specifications as the 
        Secretary determines are appropriate to achieve the objectives 
        of this section.

    (h) Board.--
            (1) Selection.--The Secretary shall appoint a board of 
        evaluators, consisting of at least 5 individuals from the 
        private sector selected for their knowledge and experience in 
        exporting United States agricultural products.
            (2) Meetings.--The board shall meet at least once annually 
        to review and evaluate all applicants and entities recommended 
        by States under subsection (g)(1).
            (3) <<NOTE: Reports.>> Recommendations of board.--The board 
        shall report its recommendations concerning the making of the 
        award to the Secretary.
            (4) Term.--Each member of the board may serve a term of not 
        to exceed 3 years.

    (i) Funding.--The Secretary may seek and accept gifts from public 
and private sources to carry out this section.

SEC. 262. REPORTING REQUIREMENTS RELATING TO TOBACCO.

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

[[Page 110 STAT. 974]]

SEC. 263. TRIGGERED EXPORT ENHANCEMENT.

    (a) Readjustment of Support Levels.--Section 1302 of the Omnibus 
Budget Reconciliation Act of 1990 (Public Law 101-508; 7 U.S.C. 1421 
note) is repealed.
    (b) Triggered Marketing Loans and Export Enhancement.--Section 4301 
of the Omnibus Trade and Competitiveness Act of 1988 (Public Law 100-
418; 7 U.S.C. 1446 note) is repealed.
    (c) <<NOTE: 7 USC 1421 note.>> Effective Date.--The amendments made 
by this section shall be effective beginning with the 1996 crops of 
wheat, feed grains, upland cotton, and rice.

SEC. 264. DISPOSITION OF COMMODITIES TO PREVENT WASTE.

    Section 416 of the Agricultural Act of 1949 (7 U.S.C. 1431) is 
amended--
            (1) in subsection (b)--
                    (A) in paragraph (7)--
                          (i) in subparagraph (D)(iv), by striking ``one 
                      year of acquisition'' and all that follows through 
                      the period at the end and inserting the following: 
                      ``a reasonable length of time, as determined by 
                      the Secretary, except that the Secretary may 
                      permit the use of proceeds in a country other than 
                      the country of origin--
                    ``(I) as necessary to expedite the transportation of 
                commodities and products furnished under this 
                subsection; or
                    ``(II) if the proceeds are generated in a currency 
                generally accepted in the other country.''; and
                          (ii) by striking the sentence following 
                      subparagraph (F) and inserting the following: 
                      ``The Secretary may approve the use of proceeds or 
                      services realized from the sale or barter of a 
                      commodity furnished under this subsection by a 
                      nonprofit voluntary agency, cooperative, or 
                      intergovernmental agency or organization to meet 
                      administrative expenses incurred in connection 
                      with activities undertaken under this 
                      subsection.'';
                    (B) in paragraph (8), by striking subparagraph (C); 
                and
                    (C) by striking paragraphs (10), (11), and (12); and
            (2) by striking subsection (c).

SEC. 265. DEBT-FOR-HEALTH-AND-PROTECTION SWAP.

    (a) In General.--Section 1517 of the Food, Agriculture, 
Conservation, and Trade Act of 1990 (7 U.S.C. 1706) is repealed.
    (b) Technical Amendment.--Subsection (e)(3) of the Food for Progress 
Act of 1985 (7 U.S.C. 1736o(e)(3)) is amended by striking ``section 
106'' and inserting ``section 103''.

SEC. 266. POLICY ON EXPANSION OF INTERNATIONAL MARKETS.

    Section 1207 of the Agriculture and Food Act of 1981 (7 U.S.C. 
1736m) is repealed.

SEC. 267. POLICY ON MAINTENANCE AND DEVELOPMENT OF EXPORT MARKETS.

    Section 1121 of the Food Security Act of 1985 (7 U.S.C. 1736p) is 
amended--
            (1) by striking subsection (a); and
            (2) in subsection (b)--

[[Page 110 STAT. 975]]

                    (A) by striking ``(b)''; and
                    (B) by striking paragraphs (1) through (4) and 
                inserting the following:
            ``(1) be the premier supplier of agricultural and food 
        products to world markets and expand exports of high value 
        products;
            ``(2) support the principle of free trade and the promotion 
        of fair trade in agricultural commodities and products;
            ``(3) cooperate fully in all efforts to negotiate with 
        foreign countries further reductions in tariff and nontariff 
        barriers to trade, including sanitary and phytosanitary measures 
        and trade-distorting subsidies;
            ``(4) aggressively counter unfair foreign trade practices as 
        a means of encouraging fairer trade;''.

SEC. 268. POLICY ON TRADE LIBERALIZATION.

    Section 1122 of the Food Security Act of 1985 (7 U.S.C. 1736q) is 
repealed.

SEC. 269. AGRICULTURAL TRADE NEGOTIATIONS.

    Section 1123 of the Food Security Act of 1985 (7 U.S.C. 1736r) is 
amended to read as follows:

``SEC. 1123. TRADE NEGOTIATIONS POLICY.

    ``(a) Findings.--Congress finds that--
            ``(1) on a level playing field, United States producers are 
        the most competitive suppliers of agricultural products in the 
        world;
            ``(2) exports of United States agricultural products 
        accounted for $54,000,000,000 in 1995, contributing a net 
        $24,000,000,000 to the merchandise trade balance of the United 
        States and supporting approximately 1,000,000 jobs;
            ``(3) increased agricultural exports are critical to the 
        future of the farm, rural, and overall United States economy, 
        but the opportunities for increased agricultural exports are 
        limited by the unfair subsidies of the competitors of the United 
        States, and a variety of tariff and nontariff barriers to highly 
        competitive United States agricultural products;
            ``(4) international negotiations can play a key role in 
        breaking down barriers to United States agricultural exports;
            ``(5) the Uruguay Round Agreement on Agriculture made 
        significant progress in the attainment of increased market 
        access opportunities for United States exports of agricultural 
        products, for the first time--
                    ``(A) restraining foreign trade-distorting domestic 
                support and export subsidy programs; and
                    ``(B) developing common rules for the application of 
                sanitary and phytosanitary restrictions;
        that should result in increased exports of United States 
        agricultural products, jobs, and income growth in the United 
        States;
            ``(6) the Uruguay Round Agreement on Agriculture did not 
        succeed in completely eliminating trade distorting domestic 
        support and export subsidies by--
                    ``(A) allowing the European Union to continue 
                unreasonable levels of spending on export subsidies; and
                    ``(B) failing to discipline monopolistic state 
                trading entities, such as the Canadian Wheat Board, that 
                use

[[Page 110 STAT. 976]]

                nontransparent and discriminatory pricing as a hidden de 
                facto export subsidy;
            ``(7) during the period 1996 through 2002, there will be 
        several opportunities for the United States to negotiate fairer 
        trade in agricultural products, including further negotiations 
        under the World Trade Organization, and steps toward possible 
        free trade agreements of the Americas and Asian-Pacific Economic 
        Cooperation (APEC); and
            ``(8) the United States should aggressively use these 
        opportunities to achieve more open and fair opportunities for 
        trade in agricultural products.

    ``(b) Goals of the United States in Agricultural Trade 
Negotiations.--The objectives of the United States with respect to 
future negotiations on agricultural trade include--
            ``(1) increasing opportunities for United States exports of 
        agricultural products by eliminating tariff and nontariff 
        barriers to trade;
            ``(2) leveling the playing field for United States producers 
        of agricultural products by limiting per unit domestic 
        production supports to levels that are no greater than those 
        available in the United States;
            ``(3) ending the practice of export dumping by eliminating 
        all trade distorting export subsidies and disciplining state 
        trading entities so that they do not (except in cases of bona 
        fide food aid) sell in foreign markets at prices below domestic 
        market prices or prices below their full costs of acquiring and 
        delivering agricultural products to the foreign markets; and
            ``(4) encouraging government policies that avoid price-
        depressing surpluses.''.

SEC. 270. POLICY ON UNFAIR TRADE PRACTICES.

    Section 1164 of the Food Security Act of 1985 (Public Law 99-198; 99 
Stat. 1499) is repealed.

SEC. 271. AGRICULTURAL AID AND TRADE MISSIONS.

    (a) In General.--The Agricultural Aid and Trade Missions Act (7 
U.S.C. 1736bb et seq.) is repealed.
    (b) Conforming Amendment.--Section 7 of Public Law 100-277 (7 U.S.C. 
1736bb note) is repealed.

SEC. 272. ANNUAL REPORTS BY AGRICULTURAL ATTACHES.

    Section 108(b)(1)(B) of the Agricultural Act of 1954 (7 U.S.C. 
1748(b)(1)(B)) is amended by striking ``including fruits, vegetables, 
legumes, popcorn and ducks''.

SEC. 273. WORLD LIVESTOCK MARKET PRICE INFORMATION.

    Section 1545 of the Food, Agriculture, Conservation, and Trade Act 
of 1990 (Public Law 101-624; 7 U.S.C. 1761 note) is repealed.

SEC. 274. ORDERLY LIQUIDATION OF STOCKS.

    Sections 201 and 207 of the Agricultural Act of 1956 (7 U.S.C. 1851 
and 1857) are repealed.

SEC. 275. SALES OF EXTRA LONG STAPLE COTTON.

    Section 202 of the Agricultural Act of 1956 (7 U.S.C. 1852) is 
repealed.

[[Page 110 STAT. 977]]

SEC. 276. REGULATIONS.

    Section 707 of the Freedom for Russia and Emerging Eurasian 
Democracies and Open Markets Support Act of 1992 (Public Law 102-511; 7 
U.S.C. 5621 note) is amended by striking subsection (d).

SEC. 277. EMERGING MARKETS.

    (a) Promotion of Agricultural Exports to Emerging Markets.--
            (1) Emerging markets.--Section 1542 of the Food, 
        Agriculture, Conservation, and Trade Act of 1990 (Public Law 
        101-624; 7 U.S.C. 5622 note) is amended--
                    (A) in the section heading, by striking ``emerging 
                democracies'' and inserting ``emerging markets'';
                    (B) by striking ``emerging democracies'' each place 
                it appears in subsections (b), (d), and (e) and 
                inserting ``emerging markets'';
                    (C) in subsection (c), by striking ``emerging 
                democracy'' each place it appears and inserting 
                ``emerging market''; and
                    (D) by striking subsection (f) and inserting the 
                following:

    ``(f) Emerging Market.--In this section and section 1543, the term 
`emerging market' means any country that the Secretary determines--
            ``(1) is taking steps toward a market-oriented economy 
        through the food, agriculture, or rural business sectors of the 
        economy of the country; and
            ``(2) has the potential to provide a viable and significant 
        market for United States agricultural commodities or products of 
        United States agricultural commodities.''.
            (2) Funding.--Section 1542 of the Food, Agriculture, 
        Conservation, and Trade Act of 1990 is amended by striking 
        subsection (a) and inserting the following:

    ``(a) Funding.--The Commodity Credit Corporation shall make 
available for fiscal years 1996 through 2002 not less than 
$1,000,000,000 of direct credits or export credit guarantees for exports 
to emerging markets under section 201 or 202 of the Agricultural Trade 
Act of 1978 (7 U.S.C. 5621 and 5622), in addition to the amounts 
acquired or authorized under section 211 of the Act (7 U.S.C. 5641) for 
the program.''.
            (3) Agricultural fellowship program.--Section 1542 of the 
        Food, Agriculture, Conservation, and Trade Act of 1990 is 
        amended--
                    (A) in subsection (b), by striking the last sentence 
                and inserting the following: ``The Commodity Credit 
                Corporation shall give priority under this subsection 
                to--
            ``(A) projects that encourage the privatization of the 
        agricultural sector or that benefit private farms or 
        cooperatives in emerging markets; and
            ``(B) projects for which nongovernmental persons agree to 
        assume a relatively larger share of the costs.''; and
                    (B) in subsection (d)--
                          (i) in the matter preceding paragraph (1), by 
                      striking ``the Soviet Union'' and inserting 
                      ``emerging markets'';
                          (ii) in paragraph (1)--

[[Page 110 STAT. 978]]

                                    (I) in subparagraph (A)(i)--
                                            (aa) by striking ``1995'' 
                                        and inserting ``2002''; and
                                            (bb) by striking ``those 
                                        systems, and identify'' and 
                                        inserting ``the systems, 
                                        including potential reductions 
                                        in trade barriers, and identify 
                                        and carry out'';
                                    (II) in subparagraph (B), by 
                                striking ``shall'' and inserting 
                                ``may'';
                                    (III) in subparagraph (D), by 
                                inserting ``(including the establishment 
                                of extension services)'' after 
                                ``technical assistance'';
                                    (IV) by striking subparagraph (F); 
                                and
                                    (V) by redesignating subparagraphs 
                                (G), (H), and (I) as subparagraphs (F), 
                                (G), and (H), respectively;
                          (iii) in paragraph (2)--
                                    (I) by striking ``the Soviet Union'' 
                                each place it appears and inserting 
                                ``emerging markets'';
                                    (II) in subparagraph (A), by 
                                striking ``a free market food production 
                                and distribution system'' and inserting 
                                ``free market food production and 
                                distribution systems'';
                                    (III) in subparagraph (B)--
                                            (aa) in clause (i), by 
                                        striking ``Government'' and 
                                        inserting ``governments'';
                                            (bb) in clause (iii)(II), by 
                                        striking ``and'' at the end;
                                            (cc) in clause (iii)(III), 
                                        by striking the period at the 
                                        end and inserting ``; and''; and
                                            (dd) by adding at the end of 
                                        clause (iii) the following:
                                    ``(IV) to provide for the exchange 
                                of administrators and faculty members 
                                from agricultural and other institutions 
                                to strengthen and revise educational 
                                programs in agricultural economics, 
                                agribusiness, and agrarian law, to 
                                support change towards a free market 
                                economy in emerging markets.'';
                                    (IV) by striking subparagraph (D); 
                                and
                                    (V) by redesignating subparagraph 
                                (E) as subparagraph (D); and
                          (iv) by striking paragraph (3).
            (4) United states agricultural commodity.--Subsections (b) 
        and (c) of section 1542 of the Food, Agriculture, Conservation, 
        and Trade Act of 1990 <<NOTE: 7 USC 5622 note.>>  are amended by 
        striking ``section 101(6)'' each place it appears and inserting 
        ``section 102(7)''.
            (5) Report.--The first sentence of section 1542(e)(2) of the 
        Food, Agriculture, Conservation, and Trade Act of 1990 is 
        amended by striking ``Not'' and inserting ``Subject to section 
        217 of the Department of Agriculture Reorganization Act of 1994 
        (7 U.S.C. 6917), not''.

    (b) Agricultural Fellowship Program for Middle Income Countries, 
Emerging Democracies, and Emerging Markets.--Section 1543 of the Food, 
Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 3293) is 
amended--

[[Page 110 STAT. 979]]

            (1) in the section heading, by striking ``middle income 
        countries and emerging democracies'' and inserting ``middle 
        income countries, emerging democracies, and emerging markets'';
            (2) in subsection (b), by adding at the end the following:
            ``(5) Emerging market.--Any emerging market, as defined in 
        section 1542(f).''; and
            (3) in subsection (c)(1), by striking ``food needs'' and 
        inserting ``food and fiber needs''.

    (c) Conforming Amendments.--
            (1) Section 501 of the Agricultural Trade Development and 
        Assistance Act of 1954 (7 U.S.C. 1737) is amended--
                    (A) in subsection (a), by striking ``emerging 
                democracies'' and inserting ``emerging markets''; and
                    (B) in subsection (b), by striking paragraph (1) and 
                inserting the following:
            ``(1) Emerging market.--The term `emerging market' means any 
        country that the Secretary determines--
                    ``(A) is taking steps toward a market-oriented 
                economy through the food, agriculture, or rural business 
                sectors of the economy of the country; and
                    ``(B) has the potential to provide a viable and 
                significant market for United States agricultural 
                commodities or products of United States agricultural 
                commodities.''.
            (2) Section 201(d)(1)(C)(ii) of the Agricultural Trade Act 
        of 1978 (7 U.S.C. 5621(d)(1)(C)(ii)) is amended by striking 
        ``emerging democracies'' and inserting ``emerging markets''.
            (3) Section 202(d)(3)(B) of the Agricultural Trade Act of 
        1978 (7 U.S.C. 5622(d)(3)(B)) is amended by striking ``emerging 
        democracies'' and inserting ``emerging markets''.

SEC. 278. REIMBURSEMENT FOR OVERHEAD EXPENSES.

    Section 1542(d)(1)(D) of the Food, Agriculture, Conservation, and 
Trade Act of 1990 (Public Law 101-624; 7 U.S.C. 5622 note) is amended by 
adding at the end the following: ``Notwithstanding any other provision 
of law, the assistance shall include assistance for administrative and 
overhead expenses of the International Cooperation and Development 
Program Area of the Foreign Agriculture Service, to the extent that the 
expenses were incurred pursuant to reimbursable agreements entered into 
prior to September 30, 1993, the expenses do not exceed $2,000,000 per 
year, and the expenses are not incurred for information technology 
systems.''.

SEC. 279. LABELING OF DOMESTIC AND IMPORTED LAMB AND MUTTON.

    Section 7 of the Federal Meat Inspection Act (21 U.S.C. 607) is 
amended by adding at the end the following:
    ``(f) <<NOTE: Standards.>> Lamb and Mutton.--The Secretary, 
consistent with United States international obligations, shall establish 
standards for the labeling of sheep carcasses, parts of sheep carcasses, 
sheepmeat, and sheepmeat food products.''.

SEC. 280. IMPORT ASSISTANCE FOR CBI BENEFICIARY COUNTRIES AND THE 
            PHILIPPINES.

    Section 583 of Public Law 100-202 (101 Stat. 1329-182) is repealed.

[[Page 110 STAT. 980]]

SEC. 281. STUDIES, REPORTS, AND OTHER PROVISIONS.

    (a) <<NOTE: 7 USC 624 note.>> In General.--Sections 1551 through 
1555, section 1558, and section 1559 of subtitle E of title XV of the 
Food, Agriculture, Conservation, and Trade Act of 1990 (Public Law 101-
624; 104 Stat. 3696) (as redesignated by section 1011(d) of the Federal 
Reports Elimination and Sunset Act of 1995 (Public Law 104-66; 109 Stat. 
709)) are repealed.

    (b) Language Proficiency.--Section 1556 of the Food, Agriculture, 
Conservation, and Trade Act of 1990 (Public Law 101-624; 7 U.S.C. 5694 
note) is amended by striking subsection (c).

SEC. 282. SENSE OF CONGRESS CONCERNING MULTILATERAL DISCIPLINES ON 
            CREDIT GUARANTEES.

    It is the sense of Congress that--
            (1) in negotiations to establish multilateral disciplines on 
        agricultural export credits and credit guarantees, the United 
        States should not agree to any arrangement that is incompatible 
        with the provisions of United States law that authorize 
        agricultural export credits and credit guarantees;
            (2) in the negotiations (which are held under the auspices 
        of the Organization for Economic Cooperation and Development), 
        the United States should not reach any agreement that fails to 
        impose disciplines on the practices of foreign government 
        trading entities such as the Australian Wheat Board, the 
        Canadian Wheat Board, the New Zealand Dairy Board, and the 
        Australian Dairy Board; and
            (3) the disciplines should include greater openness in the 
        operations of the entities as long as the entities are 
        subsidized by the foreign government or have monopolies for 
        exports of a commodity that are sanctioned by the foreign 
        government.

SEC. 283. <<NOTE: 22 USC 288 note.>> INTERNATIONAL COTTON ADVISORY 
            COMMITTEE.

    (a) <<NOTE: President.>> In General.--The President shall ensure 
that the Government of the United States participates as a full member 
of the International Cotton Advisory Committee.

    (b) Representation by the Secretary.--The Secretary of Agriculture 
shall represent the Government of the United States as a member of the 
International Cotton Advisory Committee and shall delegate the primary 
responsibility to represent the Government of the United States to 
appropriately qualified individuals.

                         TITLE III--CONSERVATION

                         Subtitle A--Definitions

SEC. 301. DEFINITIONS APPLICABLE TO HIGHLY ERODIBLE CROPLAND 
            CONSERVATION.

    (a) Conservation Plan and Conservation System.--Section 1201(a) of 
the Food Security Act of 1985 (16 U.S.C. 3801(a)) is amended--
            (1) by redesignating paragraphs (2) through (16) as 
        paragraphs (4) through (18), respectively; and
            (2) by inserting after paragraph (1) the following:
            ``(2) Conservation plan.--The term `conservation plan' means 
        the document that--
                    ``(A) applies to highly erodible cropland;

[[Page 110 STAT. 981]]

                    ``(B) describes the conservation system applicable 
                to the highly erodible cropland and describes the 
                decisions of the person with respect to location, land 
                use, tillage systems, and conservation treatment 
                measures and schedule; and
                    ``(C) is approved by the local soil conservation 
                district, in consultation with the local committees 
                established under section 8(b)(5) of the Soil 
                Conservation and Domestic Allotment Act (16 U.S.C. 
                590h(b)(5)) and the Secretary, or by the Secretary.
            ``(3) Conservation system.--The term `conservation system' 
        means a combination of 1 or more conservation measures or 
        management practices that--
                    ``(A) are based on local resource conditions, 
                available conservation technology, and the standards and 
                guidelines contained in the Natural Resources 
                Conservation Service field office technical guides; and
                    ``(B) are designed to achieve, in a cost effective 
                and technically practicable manner, a substantial 
                reduction in soil erosion or a substantial improvement 
                in soil conditions on a field or group of fields 
                containing highly erodible cropland when compared to the 
                level of erosion or soil conditions that existed before 
                the application of the conservation measures and 
                management practices.''.

    (b) Field.--Section 1201(a) of the Food Security Act of <<NOTE: 16 
USC 3801.>> 1985 is amended by striking paragraph (7) (as redesignated 
by subsection (a)(1)) and inserting the following:
            ``(7) Field.--The term `field' means a part of a farm that 
        is separated from the balance of the farm by permanent 
        boundaries such as fences, roads, permanent waterways, or other 
        similar features. At the option of the owner or operator of the 
        farm, croplines may also be used to delineate a field if farming 
        practices make it probable that the croplines are not subject to 
        change. Any highly erodible land on which an agricultural 
        commodity is produced after December 23, 1985, and that is not 
        exempt under section 1212, shall be considered as part of the 
        field in which the land was included on December 23, 1985, 
        unless the owner and Secretary agree to modification of the 
        boundaries of the field to carry out this title.''.

    (c) Highly Erodible Land.--Section 1201(a)(9) of the Food Security 
Act of 1985 (as redesignated by subsection (a)(1)) is amended by adding 
at the end the following:
                    ``(C) <<NOTE: Federal Register, 
                publication.>> Equations.--Not later than 60 days after 
                the date of enactment of this subparagraph, the 
                Secretary shall publish in the Federal Register the 
                universal soil loss equation and wind erosion equation 
                used by the Department of Agriculture as of that date. 
                The Secretary may not change the equations after that 
                date except following notice and comment in a manner 
                consistent with section 553 of title 5, United States 
                Code.''.

    (d) Conforming Amendments.--Section 1212 of the Food Security Act of 
1985 (16 U.S.C. 3812) is amended--
            (1) in the first sentence of subsection (a)(2), by striking 
        ``that documents'' and all that follows through ``by the 
        Secretary'';

[[Page 110 STAT. 982]]

            (2) in subsection (c)(3), by striking ``based on'' and all 
        that follows through ``and the Secretary,'' and inserting ``, in 
        which case,'';
            (3) in subsection (e)(1)(A), by striking ``conservation 
        compliance plan'' and inserting ``conservation plan''; and
            (4) in subsection (f)--
                    (A) in paragraph (1), by striking ``that documents'' 
                and all that follows through ``under subsection (a)'';
                    (B) in paragraph (3), by striking ``prepared under 
                subsection (a)''; and
                    (C) in paragraph (4), by striking ``that documents'' 
                and all that follows through ``subsection (a)''.

              Subtitle B--Highly Erodible Land Conservation

SEC. 311. PROGRAM INELIGIBILITY.

     <<NOTE: Effective date.>> Effective 90 days after the date of 
enactment of this Act, section 1211 of the Food Security Act of 1985 (16 
U.S.C. 3811) is amended--
            (1) in the matter preceding paragraph (1), by striking 
        ``following the date of enactment of this Act,'';
            (2) in paragraph (1)--
                    (A) by striking subparagraph (A) and inserting the 
                following:
                    ``(A) contract payments under a production 
                flexibility contract, marketing assistance loans, and 
                any type of price support or payment made available 
                under the Agricultural Market Transition Act, the 
                Commodity Credit Corporation Charter Act (15 U.S.C. 714 
                et seq.), or any other Act;'';
                    (B) by striking subparagraph (C);
                    (C) in subparagraph (D), by striking ``made under'' 
                and all that follows through ``August 14, 1989'';
                    (D) in subparagraph (E), by striking ``Farmers Home 
                Administration'' and inserting ``Consolidated Farm 
                Service Agency''; and
                    (E) by redesignating subparagraphs (D) and (E) as 
                subparagraphs (C) and (D), respectively; and
            (3) by striking paragraph (3) and inserting the following:
            ``(3) during the crop year--
                    ``(A) a payment made pursuant to a contract entered 
                into under the environmental quality incentives program 
                under chapter 4 of subtitle D;
                    ``(B) a payment under any other provision of 
                subtitle D;
                    ``(C) a payment under section 401 or 402 of the 
                Agricultural Credit Act of 1978 (16 U.S.C. 2201 and 
                2202); or
                    ``(D) a payment, loan, or other assistance under 
                section 3 or 8 of the Watershed Protection and Flood 
                Prevention Act (16 U.S.C. 1003 and 1006a).''.

SEC. 312. CONSERVATION RESERVE LANDS.

    Section 1212(a)(3) of the Food Security Act of 1985 (16 U.S.C. 
3812(a)(3)) is amended by striking ``shall, if the conservation plan 
established under this subtitle for such land requires structures to be 
constructed,'' and inserting ``shall only be required to apply

[[Page 110 STAT. 983]]

a conservation plan established under this subtitle. The person shall 
not be required to meet a higher conservation standard than the standard 
applied to other highly erodible cropland located within the same area. 
If the person's conservation plan requires structures to be constructed, 
the person shall''.

SEC. 313. GOOD FAITH EXEMPTION.

    (a) Grace Period To Resume Conservation Compliance.--Section 
1212(f)(1) of the Food Security Act of 1985 (16 U.S.C. 3812(f)(1)) is 
amended--
            (1) by striking ``Except to the extent provided in paragraph 
        (2), no'' and inserting ``No''; and
            (2) by striking ``such person has--'' and all that follows 
        through the period at the end of subparagraph (B) and inserting 
        the following: ``the person has acted in good faith and without 
        an intent to violate this subtitle. A person who meets the 
        requirements of this paragraph shall be allowed a reasonable 
        period of time, as determined by the Secretary, but not to 
        exceed 1 year, during which to implement the measures and 
        practices necessary to be considered to be actively applying the 
        person's conservation plan.''.

    (b) Special Penalties Regarding Certain Highly Erodible Cropland.--
Section 1212(f)(2) of the Food Security Act of 1985 (16 U.S.C. 
3812(f)(2)) is amended by striking ``meets the requirements of paragraph 
(1)'' and inserting ``with respect to highly erodible cropland that was 
not in production prior to December 23, 1985, and has acted in good 
faith and without an intent to violate the provisions''.
    (c) Conforming Amendment.--Section 1212(f)(4) of the Food Security 
Act of 1985 (16 U.S.C. 3812(f)(4)) is amended by striking the last 
sentence.

SEC. 314. EXPEDITED PROCEDURES FOR GRANTING VARIANCES FROM CONSERVATION 
            PLANS.

    Section 1212(f) of the Food Security Act of 1985 (16 U.S.C. 
3812(f)(4)) is amended--
            (1) in paragraph (4)(C), by striking ``problem'' and 
        inserting ``problem, including weather, pest, and disease 
        problems''; and
            (2) by adding at the end the following:
            ``(5) Expedited procedures for temporary variances.--After 
        consultation with local conservation districts, the Secretary 
        shall establish expedited procedures for the consideration and 
        granting of temporary variances under paragraph (4)(C). If the 
        request for a temporary variance under paragraph (4)(C) involves 
        the use of practices or measures to address weather, pest, or 
        disease problems, the Secretary shall make a decision on whether 
        to grant the variance during the 30-day period beginning on the 
        date of receipt of the request. If the Secretary fails to render 
        a decision during the period, the temporary variance shall be 
        considered granted.''.

SEC. 315. DEVELOPMENT AND IMPLEMENTATION OF CONSERVATION PLANS AND 
            CONSERVATION SYSTEMS.

    (a) Development and Implementation.--The Food Security Act of 1985 
is amended--
            (1) by redesignating section 1213 (16 U.S.C. 3813) as 
        section 1214; and

[[Page 110 STAT. 984]]

            (2) by inserting after section 1212 (16 U.S.C. 3812) the 
        following:

``SEC. 1213. <<NOTE: 16 USC 3812a.>> DEVELOPMENT AND IMPLEMENTATION OF 
            CONSERVATION PLANS AND CONSERVATION SYSTEMS.

    ``(a) Technical Requirements.--In connection with the standards and 
guidelines contained in Natural Resources Conservation Service field 
office technical guides applicable to the development and use of 
conservation measures and management practices as part of a conservation 
system, the Secretary shall ensure that the standards and guidelines 
permit a person to use a conservation system that--
            ``(1) is technically and economically feasible;
            ``(2) is based on local resource conditions and available 
        conservation technology;
            ``(3) is cost-effective; and
            ``(4) does not cause undue economic hardship on the person 
        applying the conservation system under the person's conservation 
        plan.

    ``(b) Measurement of Erosion Reduction.--For the purpose of 
determining whether there is a substantial reduction in soil erosion on 
a field containing highly erodible cropland, the measurement of erosion 
reduction achieved by the application of a conservation system under a 
person's conservation plan shall be based on the estimated annual level 
of erosion at the time of the measurement compared to the estimated 
annual level of erosion that existed before the implementation of the 
conservation measures and management practices provided for in the 
conservation system.
    ``(c) Residue Measurement.--
            ``(1) Responsibilities of the secretary.--For the purpose of 
        measuring the level of residue on a field, the Secretary shall--
                    ``(A) take into account any residue incorporated 
                into the top 2 inches of soil, as well as the growing 
                crop, in the measurement;
                    ``(B) provide technical guidelines for acceptable 
                residue measurement methods;
                    ``(C) provide a certification system for third 
                parties to perform residue measurements; and
                    ``(D) provide for the acceptance and use of 
                information and data voluntarily provided by the 
                producer regarding the field.
            ``(2) Acceptance of producer measurements.--Annual residue 
        measurements supplied by a producer (including measurements 
        performed by a certified third party) shall be used by the 
        Secretary if the Secretary determines that the measurements 
        indicate that the residue level for the field meets the level 
        required under the conservation plan.

    ``(d) Certification of Compliance.--
            ``(1) In general.--For the purpose of determining the 
        eligibility of a person for program benefits specified in 
        section 1211 at the time application is made for the benefits, 
        the Secretary shall permit the person to certify that the person 
        is complying with the person's conservation plan.
            ``(2) Status reviews.--If a person makes a certification 
        under paragraph (1), the Secretary shall not be required to 
        carry out a review of the status of compliance of the person

[[Page 110 STAT. 985]]

        with the conservation plan under which the conservation system 
        is being applied.
            ``(3) Revisions and modifications.--The Secretary shall 
        permit a person who makes a certification under paragraph (1) 
        with respect to a conservation plan to revise the conservation 
        plan in any manner, if the same level of conservation treatment 
        provided for by the conservation system under the person's 
        conservation plan is maintained. The Secretary may not revise 
        the person's conservation plan without the concurrence of the 
        person.

    ``(e) Technical Assistance.--The Secretary shall, using available 
resources and consistent with the Secretary's other conservation 
responsibilities and objectives, provide technical assistance to a 
person throughout the development, revision, and application of the 
conservation plan and any conservation system of the person. At the 
request of the person, the Secretary may provide technical assistance 
regarding conservation measures and management practices for other lands 
of the person that do not contain highly erodible cropland.
    ``(f) Encouragement of On-Farm Research.--To encourage on-farm 
conservation research, the Secretary may allow a person to include in 
the person's conservation plan or a conservation system under the plan, 
on a field trial basis, practices that are not currently approved but 
that the Secretary considers have a reasonable likelihood of success.''.
    (b) Treatment of Technical Determinations.--Section 226(d)(2) of the 
Department of Agriculture Reorganization Act of 1994 (7 U.S.C. 
6932(d)(2)) is amended--
            (1) by striking ``determination.--With'' and inserting 
        ``determination.--
                    ``(A) In general.--With''; and
            (2) by adding at the end the following:
                    ``(B) Economic hardship.--After a technical 
                determination has been made, on a producer's request, if 
                a county or area committee determines that the 
                application of the producer's conservation system would 
                impose an undue economic hardship on the producer, the 
                committee shall provide the producer with relief to 
                avoid the hardship.''.

SEC. 316. INVESTIGATION OF POSSIBLE COMPLIANCE DEFICIENCIES.

    Subtitle B of title XII of the Food Security Act of 1985 (as amended 
by section 315(a)(1)) is amended by adding at the end the following:

``SEC. 1215. <<NOTE: 16 USC 3814.>> NOTICE AND INVESTIGATION OF POSSIBLE 
            COMPLIANCE DEFICIENCIES.

    ``(a) In General.--An employee of the Department of Agriculture who 
observes a possible compliance deficiency or other potential violation 
of a conservation plan or this subtitle while providing on-site 
technical assistance shall provide to the responsible persons, not later 
than 45 days after observing the possible violation, information 
regarding actions needed to comply with the plan and this subtitle. The 
employee shall provide the information in lieu of reporting the 
observation as a compliance violation.
    ``(b) Corrective Action.--The responsible persons shall attempt to 
correct the deficiencies as soon as practicable after receiving the 
information.

[[Page 110 STAT. 986]]

    ``(c) Review.--If the corrective action is not fully implemented not 
later than 1 year after the responsible persons receive the information, 
the Secretary may conduct a review of the status of compliance of the 
persons with the conservation plan and this subtitle.''.

SEC. 317. <<NOTE: 16 USC 3811 note.>> WIND EROSION ESTIMATION PILOT 
            PROJECT.

    (a) In General.--The Secretary of Agriculture shall conduct a pilot 
project to review, and modify as appropriate, the use of wind erosion 
factors under the highly erodible conservation requirements of subtitle 
B of title XII of the Food Security Act of 1985 (16 U.S.C. 3811 et 
seq.).
    (b) Selection of Counties and Producers.--The pilot project shall be 
conducted for producers in those counties that--
            (1) have approximately 100 percent of their cropland 
        determined to be highly erodible under title XII of the Act;
            (2) have a reasonable likelihood that the use of wind 
        erosion factors under title XII of the Act have resulted in an 
        inequitable application of the highly erodible land requirements 
        of title XII of the Act; and
            (3) if the use of the land classification system under 
        section 1201(a)(9)(A) of the Act (as redesignated by section 
        301(a)(1)) may result in a more accurate delineation of the 
        cropland.

    (c) Errors in Delineation.--If the Secretary determines that a 
significant error has occurred in delineating cropland under the pilot 
project, the Secretary shall, at the request of the owners or operators 
of the cropland, conduct a new delineation of the cropland using the 
most accurate available delineation process, as determined by the 
Secretary.

                    Subtitle C--Wetland Conservation

SEC. 321. PROGRAM INELIGIBILITY.

    (a) Program Ineligibility.--Section 1221 of the Food Security Act of 
1985 (16 U.S.C. 3821) is amended--
            (1) by redesignating subsection (b) as subsection (c); and
            (2) by striking the section heading and all that follows 
        through the end of subsection (a) and inserting the following:

``SEC. 1221. PROGRAM INELIGIBILITY.

    ``(a) Production on Converted Wetland.--Except as provided in this 
subtitle and notwithstanding any other provision of law, any person who 
in any crop year produces an agricultural commodity on converted 
wetland, as determined by the Secretary, shall be--
            ``(1) in violation of this section; and
            ``(2) ineligible for loans or payments in an amount 
        determined by the Secretary to be proportionate to the severity 
        of the violation.

    ``(b) Ineligibility for Certain Loans and Payments.--If a person is 
determined to have committed a violation under subsection (a) during a 
crop year, the Secretary shall determine which of, and the amount of, 
the following loans and payments for which the person shall be 
ineligible:
            ``(1) Contract payments under a production flexibility 
        contract, marketing assistance loans, and any type of price 
        support or payment made available under the Agricultural Market

[[Page 110 STAT. 987]]

        Transition Act, the Commodity Credit Corporation Charter Act (15 
        U.S.C. 714 et seq.), or any other Act.
            ``(2) A loan made or guaranteed under the Consolidated Farm 
        and Rural Development Act (7 U.S.C. 1921 et seq.) or any other 
        provision of law administered by the Consolidated Farm Service 
        Agency, if the Secretary determines that the proceeds of the 
        loan will be used for a purpose that will contribute to 
        conversion of a wetland (other than as provided in this 
        subtitle) to produce an agricultural commodity.
            ``(3) During the crop year:
                    ``(A) A payment made pursuant to a contract entered 
                into under the environmental quality incentives program 
                under chapter 4 of subtitle D.
                    ``(B) A payment under any other provision of 
                subtitle D.
                    ``(C) A payment under section 401 or 402 of the 
                Agricultural Credit Act of 1978 (16 U.S.C. 2201 and 
                2202).
                    ``(D) A payment, loan, or other assistance under 
                section 3 or 8 of the Watershed Protection and Flood 
                Prevention Act (16 U.S.C. 1003 and 1006a).''.

    (b) Conforming Amendments.--
            (1) Section 1221(c) of the Food Security Act of 1985 (as 
        redesignated by subsection (a)(1)) is amended-- <<NOTE: 16 USC 
        3821.>> 
                    (A) by striking ``Except'' and inserting ``Wetland 
                Conversion.--Except'';
                    (B) by striking ``subsequent to the date of 
                enactment of the Food, Agriculture, Conservation, and 
                Trade Act of 1990'' and inserting ``beginning after 
                November 28, 1990,''; and
                    (C) by striking ``subsections (a) (1) through (3)'' 
                and inserting ``subsection (b)''.
            (2) Section 1221 of the Food Security Act of 1985 (as 
        amended by subsection (a)) is amended by adding at the end the 
        following:

    ``(d) Prior Loans.--This section shall not apply to a loan described 
in subsection (b) made before December 23, 1985.''.

SEC. 322. DELINEATION OF WETLANDS; EXEMPTIONS TO PROGRAM INELIGIBILITY.

    (a) Delineation of Wetlands.--Section 1222 of the Food Security Act 
of 1985 (16 U.S.C. 3822) is amended by striking subsection (a) and 
inserting the following:
    ``(a) Delineation by the Secretary.--
            ``(1) In general.--Subject to subsection (b) and paragraph 
        (6), the Secretary shall delineate, determine, and certify all 
        wetlands located on subject land on a farm.
            ``(2) Wetland delineation maps.--The Secretary shall 
        delineate wetlands on wetland delineation maps. On the request 
        of a person, the Secretary shall make a reasonable effort to 
        make an on-site wetland determination prior to delineation.
            ``(3) Certification.--On providing notice to affected 
        persons, the Secretary shall--
                    ``(A) certify whether a map is sufficient for the 
                purpose of making a determination of ineligibility for 
                program benefits under section 1221; and
                    ``(B) provide an opportunity to appeal the 
                certification prior to the certification becoming final.

[[Page 110 STAT. 988]]

            ``(4) Duration of certification.--A final certification made 
        under paragraph (3) shall remain valid and in effect as long as 
        the area is devoted to an agricultural use or until such time as 
        the person affected by the certification requests review of the 
        certification by the Secretary.
            ``(5) Review of mapping on appeal.--In the case of an appeal 
        of the Secretary's certification, the Secretary shall review and 
        certify the accuracy of the mapping of all land subject to the 
        appeal to ensure that the subject land has been accurately 
        delineated. Prior to rendering a decision on the appeal, the 
        Secretary shall conduct an on-site inspection of the subject 
        land on a farm.
            ``(6) Reliance on prior certified delineation.--No person 
        shall be adversely affected because of having taken an action 
        based on a previous certified wetland delineation by the 
        Secretary. The delineation shall not be subject to a subsequent 
        wetland certification or delineation by the Secretary, unless 
        requested by the person under paragraph (4).''.

    (b) Exemptions.--Section 1222 of the Food Security Act of 1985 (16 
U.S.C. 3822) is amended by striking subsection (b) and inserting the 
following:
    ``(b) Exemptions.--No person shall become ineligible under section 
1221 for program loans or payments under the following circumstances:
            ``(1) As the result of the production of an agricultural 
        commodity on the following lands:
                    ``(A) A converted wetland if the conversion of the 
                wetland was commenced before December 23, 1985.
                    ``(B) Land that is a nontidal drainage or irrigation 
                ditch excavated in upland.
                    ``(C) A wet area created by a water delivery system, 
                irrigation, irrigation system, or application of water 
                for irrigation.
                    ``(D) A wetland on which the owner or operator of a 
                farm or ranch uses normal cropping or ranching practices 
                to produce an agricultural commodity in a manner that is 
                consistent for the area where the production is possible 
                as a result of a natural condition, such as drought, and 
                is without action by the producer that destroys a 
                natural wetland characteristic.
                    ``(E) Land that is an artificial lake or pond 
                created by excavating or diking land (that is not a 
                wetland) to collect and retain water and that is used 
                primarily for livestock watering, fish production, 
                irrigation, wildlife, fire control, flood control, 
                cranberry growing, or rice production, or as a settling 
                pond.
                    ``(F) A wetland that is temporarily or incidentally 
                created as a result of adjacent development activity.
                    ``(G) A converted wetland if the original conversion 
                of the wetland was commenced before December 23, 1985, 
                and the Secretary determines the wetland characteristics 
                returned after that date as a result of--
                          ``(i) the lack of maintenance of drainage, 
                      dikes, levees, or similar structures;
                          ``(ii) a lack of management of the lands 
                      containing the wetland; or

[[Page 110 STAT. 989]]

                          ``(iii) circumstances beyond the control of 
                      the person.
                    ``(H) A converted wetland, if--
                          ``(i) the converted wetland was determined by 
                      the Natural Resources Conservation Service to have 
                      been manipulated for the production of an 
                      agricultural commodity or forage prior to December 
                      23, 1985, and was returned to wetland conditions 
                      through a voluntary restoration, enhancement, or 
                      creation action subsequent to that determination;
                          ``(ii) technical determinations regarding the 
                      prior site conditions and the restoration, 
                      enhancement, or creation action have been 
                      adequately documented by the Natural Resources 
                      Conservation Service;
                          ``(iii) the proposed conversion action is 
                      approved by the Natural Resources Conservation 
                      Service prior to implementation; and
                          ``(iv) the extent of the proposed conversion 
                      is limited so that the conditions will be at least 
                      equivalent to the wetland functions and values 
                      that existed prior to implementation of the 
                      voluntary wetland restoration, enhancement, or 
                      creation action.
            ``(2) For the conversion of the following:
                    ``(A) An artificial lake or pond created by 
                excavating or diking land that is not a wetland to 
                collect and retain water and that is used primarily for 
                livestock watering, fish production, irrigation, 
                wildlife, fire control, flood control, cranberry 
                growing, rice production, or as a settling pond.
                    ``(B) A wetland that is temporarily or incidentally 
                created as a result of adjacent development activity.
                    ``(C) A wetland on which the owner or operator of a 
                farm or ranch uses normal cropping or ranching practices 
                to produce an agricultural commodity in a manner that is 
                consistent for the area where the production is possible 
                as a result of a natural condition, such as drought, and 
                is without action by the producer that destroys a 
                natural wetland characteristic.
                    ``(D) A wetland previously identified as a converted 
                wetland (if the original conversion of the wetland was 
                commenced before December 23, 1985), but that the 
                Secretary determines returned to wetland status after 
                that date as a result of--
                          ``(i) the lack of maintenance of drainage, 
                      dikes, levees, or similar structures;
                          ``(ii) a lack of management of the lands 
                      containing the wetland; or
                          ``(iii) circumstances beyond the control of 
                      the person.
                    ``(E) A wetland, if--
                          ``(i) the wetland was determined by the 
                      Natural Resources Conservation Service to have 
                      been manipulated for the production of an 
                      agricultural commodity or forage prior to December 
                      23, 1985, and was returned to wetland conditions 
                      through a voluntary restoration, enhancement, or 
                      creation action subsequent to that determination;

[[Page 110 STAT. 990]]

                          ``(ii) technical determinations regarding the 
                      prior site conditions and the restoration, 
                      enhancement, or creation action have been 
                      adequately documented by the Natural Resources 
                      Conservation Service;
                          ``(iii) the proposed conversion action is 
                      approved by the Natural Resources Conservation 
                      Service prior to implementation; and
                          ``(iv) the extent of the proposed conversion 
                      is limited so that the conditions will be at least 
                      equivalent to the wetland functions and values 
                      that existed prior to implementation of the 
                      voluntary wetland restoration, enhancement, or 
                      creation action.''.

    (c) Identification of Minimal Effect Exemptions.--Section 1222 of 
the Food Security Act of 1985 (16 U.S.C. 3822) is amended by striking 
subsection (d) and inserting the following:
    ``(d) Identification of Minimal Effect Exemptions.--For purposes of 
applying the minimal effect exemption under subsection (f)(1), the 
Secretary shall identify by regulation categorical minimal effect 
exemptions on a regional basis to assist persons in avoiding a violation 
of the ineligibility provisions of section 1221. The Secretary shall 
ensure that employees of the Department of Agriculture who administer 
this subtitle receive appropriate training to properly apply the minimal 
effect exemptions determined by the Secretary.''.
    (d) Minimal Effect and Mitigation Exemptions.--Section 1222 of the 
Food Security Act of 1985 (16 U.S.C. 3822) is amended by striking 
subsection (f) and inserting the following:
    ``(f) Minimal Effect; Mitigation.--The Secretary shall exempt a 
person from the ineligibility provisions of section 1221 for any action 
associated with the production of an agricultural commodity on a 
converted wetland, or the conversion of a wetland, if 1 or more of the 
following conditions apply, as determined by the Secretary:
            ``(1) The action, individually and in connection with all 
        other similar actions authorized by the Secretary in the area, 
        will have a minimal effect on the functional hydrological and 
        biological value of the wetlands in the area, including the 
        value to waterfowl and wildlife.
            ``(2) The wetland and the wetland values, acreage, and 
        functions are mitigated by the person through the restoration of 
        a converted wetland, the enhancement of an existing wetland, or 
        the creation of a new wetland, and the restoration, enhancement, 
        or creation is--
                    ``(A) in accordance with a wetland conservation 
                plan;
                    ``(B) in advance of, or concurrent with, the action;
                    ``(C) not at the expense of the Federal Government;
                    ``(D) in the case of enhancement or restoration of 
                wetlands, on not greater than a 1-for-1 acreage basis 
                unless more acreage is needed to provide equivalent 
                functions and values that will be lost as a result of 
                the wetland conversion to be mitigated;
                    ``(E) in the case of creation of wetlands, on 
                greater than a 1-for-1 acreage basis if more acreage is 
                needed to provide equivalent functions and values that 
                will be lost as a result of the wetland conversion that 
                is mitigated;
                    ``(F) on lands in the same general area of the local 
                watershed as the converted wetland; and

[[Page 110 STAT. 991]]

                    ``(G) with respect to the restored, enhanced, or 
                created wetland, made subject to an easement that--
                          ``(i) is recorded on public land records;
                          ``(ii) remains in force for as long as the 
                      converted wetland for which the restoration, 
                      enhancement, or creation to be mitigated remains 
                      in agricultural use or is not returned to its 
                      original wetland classification with equivalent 
                      functions and values; and
                          ``(iii) prohibits making alterations to the 
                      restored, enhanced, or created wetland that lower 
                      the wetland's functions and values.
            ``(3) The wetland was converted after December 23, 1985, but 
        before November 28, 1990, and the wetland values, acreage, and 
        functions are mitigated by the producer through the requirements 
        of subparagraphs (A), (B), (C), (D), (F), and (G) of paragraph 
        (2).
            ``(4) The action was authorized by a permit issued under 
        section 404 of the Federal Water Pollution Control Act (33 
        U.S.C. 1344) and the wetland values, acreage, and functions of 
        the converted wetland were adequately mitigated for the purposes 
        of this subtitle.''.

    (e) References to Producer.--Section 1222(g) of the Food Security 
Act of 1985 (16 U.S.C. 3822(g)) is amended by striking ``producer'' and 
inserting ``person''.
    (f) Good Faith Exemption.--Section 1222 of the Food Security Act of 
1985 (16 U.S.C. 3822) is amended by striking subsection (h) and 
inserting the following:
    ``(h) Good Faith Exemption.--
            ``(1) Exemption described.--The Secretary may waive a 
        person's ineligibility under section 1221 for program loans, 
        payments, and benefits as the result of the conversion of a 
        wetland subsequent to November 28, 1990, or the production of an 
        agricultural commodity on a converted wetland, if the Secretary 
        determines that the person has acted in good faith and without 
        intent to violate this subtitle.
            ``(2) Period for compliance.--The Secretary shall provide a 
        person who the Secretary determines has acted in good faith and 
        without intent to violate this subtitle with a reasonable 
        period, but not to exceed 1 year, during which to implement the 
        measures and practices necessary to be considered to actively 
        restoring the subject wetland.''.

    (g) Restoration.--Section 1222(i) of the Food Security Act of 1985 
(16 U.S.C. 3822(i)) is amended by inserting before the period at the end 
the following: ``or has otherwise mitigated for the loss of wetland 
values, as determined by the Secretary, through the restoration, 
enhancement, or creation of wetland values in the same general area of 
the local watershed as the converted wetland''.
    (h) Determinations.--Section 1222 of the Food Security Act of 1985 
(16 U.S.C. 3822) is amended by striking subsection (j) and inserting the 
following:
    ``(j) Determinations; Restoration and Mitigation Plans; Monitoring 
Activities.--Technical determinations, the development of restoration 
and mitigation plans, and monitoring activities under this section shall 
be made by the National Resources Conservation Service.''.

[[Page 110 STAT. 992]]

    (i) Mitigation Banking.--Section 1222 of the Food Security Act of 
1985 (16 U.S.C. 3822) is amended by adding at the end the following:
    ``(k) Mitigation Banking Program.--Using authorities available to 
the Secretary, the Secretary may operate a pilot program for mitigation 
banking of wetlands to assist persons to increase the efficiency of 
agricultural operations while protecting wetland functions and values. 
Subsection (f)(2)(C) shall not apply to this subsection.''.

SEC. 323. CONSULTATION AND COOPERATION REQUIREMENTS.

    Section 1223 of the Food Security Act of 1985 (16 U.S.C. 3823) is 
repealed.

SEC. 324. APPLICATION OF PROGRAM INELIGIBILITY TO AFFILIATED PERSONS.

    The Food Security Act of 1985 (as amended by section 323) is amended 
by inserting after section 1222 (16 U.S.C. 3822) the following:

``SEC. 1223. <<NOTE: 16 USC 3823.>> AFFILIATED PERSONS.

    ``If a person is affected by a reduction in benefits under section 
1221 and the affected person is affiliated with other persons for the 
purpose of receiving the benefits, the benefits of each affiliated 
person shall be reduced under section 1221 in proportion to the interest 
held by the affiliated person.''.

SEC. 325. CLARIFICATION OF DEFINITION OF AGRICULTURAL LANDS IN 
            MEMORANDUM OF AGREEMENT.

    (a) Agricultural Lands.--For purposes of implementing the memorandum 
of agreement entered into between the Department of Agriculture, the 
Environmental Protection Agency, the Department of the Interior, and the 
Department of the Army on January 6, 1994, relating to the delineation 
of wetlands, the term ``agricultural lands'' shall include--
            (1) native pasture, rangelands, and other lands used to 
        produce or support the production of livestock; and
            (2) tree farms.

    (b) Wetland Conservation.--Subsection (a) shall not apply with 
respect to the delineation of wetlands under subtitle C of title XII of 
the Food Security Act of 1985 (16 U.S.C. 3821 et seq.) or to the 
enforcement of the subtitle.
    (c) Successor Memorandum.--Subsection (a) shall apply to any 
amendment to or successor of the memorandum of agreement described in 
subsection (a).

SEC. 326. <<NOTE: 16 USC 3821 note.>> EFFECTIVE DATE.

    This subtitle and the amendments made by this subtitle shall become 
effective 90 days after the date of enactment of this Act.

     Subtitle D--Environmental Conservation Acreage Reserve Program

SEC. 331. ENVIRONMENTAL CONSERVATION ACREAGE RESERVE PROGRAM.

    Section 1230 of the Food Security Act of 1985 (16 U.S.C. 3830) is 
amended to read as follows:

[[Page 110 STAT. 993]]

``SEC. 1230. ENVIRONMENTAL CONSERVATION ACREAGE RESERVE PROGRAM.

    ``(a) Establishment.--
            ``(1) In general.--During the 1996 through 2002 calendar 
        years, the Secretary shall establish an environmental 
        conservation acreage reserve program (referred to in this 
        section as `ECARP') to be implemented through contracts and the 
        acquisition of easements to assist owners and operators of farms 
        and ranches to conserve and enhance soil, water, and related 
        natural resources, including grazing land, wetland, and wildlife 
        habitat.
            ``(2) Means.--The Secretary shall carry out the ECARP by--
                    ``(A) providing for the long-term protection of 
                environmentally sensitive land; and
                    ``(B) providing technical and financial assistance 
                to farmers and ranchers to--
                          ``(i) improve the management and operation of 
                      the farms and ranches; and
                          ``(ii) reconcile productivity and 
                      profitability with protection and enhancement of 
                      the environment.
            ``(3) Programs.--The ECARP shall consist of--
                    ``(A) the conservation reserve program established 
                under subchapter B;
                    ``(B) the wetlands reserve program established under 
                subchapter C; and
                    ``(C) the environmental quality incentives program 
                established under chapter 4.

    ``(b) Administration.--
            ``(1) <<NOTE: Contracts.>> In general.--In carrying out the 
        ECARP, the Secretary shall enter into contracts with owners and 
        operators and acquire interests in land through easements from 
        owners, as provided in this chapter and chapter 4.
            ``(2) Prior enrollments.--Acreage enrolled in the 
        conservation reserve or wetlands reserve program prior to the 
        date of enactment of this paragraph shall be considered to be 
        placed into the ECARP.

    ``(c) Conservation Priority Areas.--
            ``(1) Designation.--The Secretary may designate watersheds, 
        multistate areas, or regions of special environmental 
        sensitivity as conservation priority areas that are eligible for 
        enhanced assistance under this chapter and chapter 4.
            ``(2) Assistance.--The Secretary may designate areas as 
        conservation priority areas to assist, to the maximum extent 
        practicable, agricultural producers within the conservation 
        priority areas to comply with nonpoint source pollution 
        requirements under the Federal Water Pollution Control Act (33 
        U.S.C. 1251 et seq.) and other Federal and State environmental 
        laws and to meet other conservation needs.
            ``(3) Producers.--The Secretary may provide technical 
        assistance, cost-share payments, and incentive payments to 
        producers in a conservation priority area under this chapter and 
        chapter 4 based on--
                    ``(A) the significance of the soil, water, wildlife 
                habitat, and related natural resource problems in a 
                watershed, multistate area, or region; and

[[Page 110 STAT. 994]]

                    ``(B) the structural practices or land management 
                practices that best address the problems, and that 
                maximize environmental benefits for each dollar 
                expended, as determined by the Secretary.''.

SEC. 332. CONSERVATION RESERVE PROGRAM.

    (a) Program Extensions.--
            (1) Conservation reserve program.--Section 1231 of the Food 
        Security Act of 1985 (16 U.S.C. 3831) is amended by striking 
        ``1995'' each place it appears and inserting ``2002''.
            (2) Duties of owners and operators.--Section 1232(c) of the 
        Food Security Act of 1985 (16 U.S.C. 3832(c)) is amended by 
        striking ``1995'' and inserting ``2002''.

    (b) Maximum Enrollment.--Section 1231 of the Food Security Act of 
1985 (16 U.S.C. 3831) is amended by striking subsection (d) and 
inserting the following:
    ``(d) Maximum Enrollment.--The Secretary may maintain up to 
36,400,000 acres in the conservation reserve at any one time during the 
1986 through 2002 calendar years (including contracts extended by the 
Secretary pursuant to section 1437(c) of the Food, Agriculture, 
Conservation, and Trade Act of 1990 (Public Law 101-624; 16 U.S.C. 3831 
note)).''.
    (c) Optional Contract Termination by Producers.--Section 1235 of the 
Food Security Act of 1985 (16 U.S.C. 3835) is amended--
            (1) in subsection (a)--
                    (A) in paragraph (1), by striking ``3-year'' and 
                inserting ``1-year''; and
                    (B) in paragraph (2)(B)(i), by striking ``3 years'' 
                and inserting ``1 year''; and
            (2) by adding at the end the following:

    ``(e) Termination by Owner or Operator.--
            ``(1) Early termination authorized.--Subject to the other 
        provisions of this subsection, the Secretary shall allow a 
        participant who entered into a contract before January 1, 1995, 
        to terminate the contract at any time if the contract has been 
        in effect for at least 5 years. The termination shall not 
        relieve the participant of liability for a contract violation 
        occurring before the date of the termination. The participant 
        shall provide the Secretary with reasonable notice of the 
        participant's desire to terminate the contract.
            ``(2) Certain lands excepted.--The following lands shall not 
        be subject to an early termination of contract under this 
        subsection:
                    ``(A) Filterstrips, waterways, strips adjacent to 
                riparian areas, windbreaks, and shelterbelts.
                    ``(B) Land with an erodibility index of more than 
                15.
                    ``(C) Other lands of high environmental value 
                (including wetlands), as determined by the Secretary.
            ``(3) Effective date.--The contract termination shall become 
        effective 60 days after the date on which the owner or operator 
        submits the notice required under paragraph (1).
            ``(4) Prorated rental payment.--If a contract entered into 
        under this subchapter is terminated under this subsection before 
        the end of the fiscal year for which a rental payment is due, 
        the Secretary shall provide a prorated rental payment covering 
        the portion of the fiscal year during which the contract was in 
        effect.

[[Page 110 STAT. 995]]

            ``(5) Renewed enrollment.--The termination of a contract 
        entered into under this subchapter shall not affect the ability 
        of the owner or operator who requested the termination to submit 
        a subsequent bid to enroll the land that was subject to the 
        contract into the conservation reserve.
            ``(6) Conservation requirements.--If land that was subject 
        to a contract is returned to production of an agricultural 
        commodity, the conservation requirements under subtitles B and C 
        shall apply to the use of the land to the extent that the 
        requirements are similar to those requirements imposed on other 
        similar lands in the area, except that the requirements may not 
        be more onerous than the requirements imposed on other lands.''.

    (d) Enrollments in 1997.--Section 725 of the Agriculture, Rural 
Development, Food and Drug Administration, and Related Agencies 
Appropriations Act, 1996 (Public Law 104-37; 109 Stat. 332), is amended 
by striking ``: Provided,'' and all that follows through ``1997''.

SEC. 333. WETLANDS RESERVE PROGRAM.

    (a) Enrollment.--Section 1237 of the Food Security Act of 1985 (16 
U.S.C. 3837) is amended by striking subsection (b) and inserting the 
following:
    ``(b) Enrollment Conditions.--
            ``(1) Maximum enrollment.--The total number of acres 
        enrolled in the wetlands reserve program shall not exceed 
        975,000 acres.
            ``(2) Methods of enrollment.--
                    ``(A) In general.--Subject to subparagraph (B), 
                effective beginning October 1, 1996, to the maximum 
                extent practicable, the Secretary shall enroll into the 
                wetlands reserve program--
                          ``(i) \1/3\ of the acres through the use of 
                      permanent easements;
                          ``(ii) \1/3\ of the acres through the use of 
                      30-year easements; and
                          ``(iii) \1/3\ of the acres through the use of 
                      restoration cost-share agreements.
                    ``(B) Temporary easements.--Effective beginning 
                October 1, 1996, the Secretary shall not enroll acres in 
                the wetlands reserve program through the use of new 
                permanent easements until the Secretary has enrolled at 
                least 75,000 acres in the program through the use of 
                temporary easements.''.

    (b) Eligibility.--Section 1237(c) of the Food Security Act of 1985 
(16 U.S.C. 3837(c)) is amended--
            (1) by striking ``2000'' and inserting ``2002'';
            (2) by redesignating paragraphs (1) and (2) as paragraphs 
        (2) and (3), respectively; and
            (3) by inserting after ``determines that--'' the following:
            ``(1) such land maximizes wildlife benefits and wetland 
        values and functions;''.

    (c) Other Eligible Lands.--Section 1237(d) of the Food Security Act 
of 1985 (16 U.S.C. 3837(d)) is amended--
            (1) by inserting after ``subsection (c)'' the following ``, 
        land that maximizes wildlife benefits and that is''; and

[[Page 110 STAT. 996]]

            (2) in paragraph (2), by striking ``and'' at the end and 
        inserting ``or''.

    (d) Easements.--Section 1237A of the Food Security Act of 1985 (16 
U.S.C. 3837a) is amended--
            (1) in the section heading, by inserting before the period 
        at the end the following: ``and agreements'';
            (2) by striking subsection (c) and inserting the following:

    ``(c) Restoration Plans.--The development of a restoration plan, 
including any compatible use, under this section shall be made through 
the local Natural Resources Conservation Service representative, in 
consultation with the State technical committee.'';
            (3) in subsection (f), by striking the third sentence and 
        inserting the following: ``Compensation may be provided in not 
        less than 5, nor more than 30, annual payments of equal or 
        unequal size, as agreed to by the owner and the Secretary.''; 
        and
            (4) by adding at the end the following:

    ``(h) Restoration Cost-Share Agreements.--The Secretary may enroll 
land into the wetlands reserve program through an agreement that 
requires the landowner to restore wetlands on the land, if the agreement 
does not provide the Secretary with an easement.''.
    (e) Cost-Share and Technical Assistance.--Section 1237C of the Food 
Security Act of 1985 (16 U.S.C. 3837c) is amended by striking subsection 
(b) and inserting the following:
    ``(b) Cost-Share and Technical Assistance.--
            ``(1) <<NOTE: Effective date.>> Easements.--Effective 
        beginning October 1, 1996, in making cost-share payments under 
        subsection (a)(1), the Secretary shall--
                    ``(A) in the case of a permanent easement, pay the 
                owner an amount that is not less than 75 percent, but 
                not more than 100 percent, of the eligible costs; and
                    ``(B) in the case of a 30-year easement, pay the 
                owner an amount that is not less than 50 percent, but 
                not more than 75 percent, of the eligible costs.
            ``(2) Restoration cost-share agreements.--In making cost-
        share payments in connection with a restoration cost-share 
        agreement entered into under section 1237A(h), the Secretary 
        shall pay the owner an amount that is not less than 50 percent, 
        but not more than 75 percent, of the eligible costs.
            ``(3) Technical assistance.--The Secretary shall provide 
        owners with technical assistance to assist owners in complying 
        with the terms of easements and restoration cost-share 
        agreements.''.

    (f) <<NOTE: 16 USC 3837 note.>> Effect on Existing Agreements.--The 
amendments made by this section shall not affect the validity or terms 
of any agreements entered into by the Secretary of Agriculture under 
subchapter C of chapter 1 of subtitle D of title XII of the Food 
Security Act of 1985 (16 U.S.C. 3837 et seq.) before the date of 
enactment of this Act or any payments required to be made in connection 
with the agreements.

SEC. 334. ENVIRONMENTAL QUALITY INCENTIVES PROGRAM.

    Subtitle D of title XII of the Food Security Act of 1985 (16 U.S.C. 
3830 et seq.) is amended by adding at the end the following:

[[Page 110 STAT. 997]]

          ``CHAPTER 4--ENVIRONMENTAL QUALITY INCENTIVES PROGRAM

``SEC. 1240. <<NOTE: 16 USC 3839aa.>> PURPOSES.

    ``The purposes of the environmental quality incentives program 
established by this chapter are to--
            ``(1) combine into a single program the functions of--
                    ``(A) the agricultural conservation program 
                authorized by sections 7 and 8 of the Soil Conservation 
                and Domestic Allotment Act (16 U.S.C. 590g and 590h) (as 
                in effect before the amendments made by section 
                336(a)(1) of the Federal Agriculture Improvement and 
                Reform Act of 1996);
                    ``(B) the Great Plains conservation program 
                established under section 16(b) of the Soil Conservation 
                and Domestic Allotment Act (16 U.S.C. 590p(b)) (as in 
                effect before the amendment made by section 336(b)(1) of 
                the Federal Agriculture Improvement and Reform Act of 
                1996);
                    ``(C) the water quality incentives program 
                established under chapter 2 (as in effect before the 
                amendment made by section 336(h) of the Federal 
                Agriculture Improvement and Reform Act of 1996); and
                    ``(D) the Colorado River Basin salinity control 
                program established under section 202(c) of the Colorado 
                River Basin Salinity Control Act (43 U.S.C. 1592(c)) (as 
                in effect before the amendment made by section 336(c)(1) 
                of the Federal Agriculture Improvement and Reform Act of 
                1996); and
            ``(2) carry out the single program in a manner that 
        maximizes environmental benefits per dollar expended, and that 
        provides--
                    ``(A) flexible technical and financial assistance to 
                farmers and ranchers that face the most serious threats 
                to soil, water, and related natural resources, including 
                grazing lands, wetlands, and wildlife habitat;
                    ``(B) assistance to farmers and ranchers in 
                complying with this title and Federal and State 
                environmental laws, and encourages environmental 
                enhancement;
                    ``(C) assistance to farmers and ranchers in making 
                beneficial, cost-effective changes to cropping systems, 
                grazing management, manure, nutrient, pest, or 
                irrigation management, land uses, or other measures 
                needed to conserve and improve soil, water, and related 
                natural resources; and
                    ``(D) for the consolidation and simplification of 
                the conservation planning process to reduce 
                administrative burdens on producers.

``SEC. 1240A. <<NOTE: 16 USC 3839aa-1.>> DEFINITIONS.

    ``In this chapter:
            ``(1) Eligible land.--The term `eligible land' means 
        agricultural land (including cropland, rangeland, pasture, and 
        other land on which crops or livestock are produced), including 
        agricultural land that the Secretary determines poses a serious 
        threat to soil, water, or related resources by reason of the 
        soil types, terrain, climatic, soil, topographic, flood, or 
        saline characteristics, or other factors or natural hazards.
            ``(2) Land management practice.--The term `land management 
        practice' means a site-specific nutrient or manure

[[Page 110 STAT. 998]]

        management, integrated pest management, irrigation management, 
        tillage or residue management, grazing management, or other land 
        management practice carried out on eligible land that the 
        Secretary determines is needed to protect, in the most cost-
        effective manner, water, soil, or related resources from 
        degradation.
            ``(3) Livestock.--The term `livestock' means dairy cattle, 
        beef cattle, laying hens, broilers, turkeys, swine, sheep, and 
        such other animals as determined by the Secretary.
            ``(4) Producer.--The term `producer' means a person who is 
        engaged in livestock or agricultural production (as defined by 
        the Secretary).
            ``(5) Structural practice.--The term `structural practice' 
        means--
                    ``(A) the establishment on eligible land of a site-
                specific animal waste management facility, terrace, 
                grassed waterway, contour grass strip, filterstrip, 
                tailwater pit, permanent wildlife habitat, or other 
                structural practice that the Secretary determines is 
                needed to protect, in the most cost-effective manner, 
                water, soil, or related resources from degradation; and
                    ``(B) the capping of abandoned wells on eligible 
                land.

``SEC. 1240B. <<NOTE: 16 USC 3839aa-2.>> ESTABLISHMENT AND 
            ADMINISTRATION OF ENVIRONMENTAL QUALITY INCENTIVES PROGRAM.

    ``(a) Establishment.--
            ``(1) In general.--During the 1996 through 2002 fiscal 
        years, the Secretary shall provide technical assistance, cost-
        share payments, incentive payments, and education to producers, 
        who enter into contracts with the Secretary, through an 
        environmental quality incentives program in accordance with this 
        chapter.
            ``(2) Eligible practices.--
                    ``(A) Structural practices.--A producer who 
                implements a structural practice shall be eligible for 
                any combination of technical assistance, cost-share 
                payments, and education.
                    ``(B) Land management practices.--A producer who 
                performs a land management practice shall be eligible 
                for any combination of technical assistance, incentive 
                payments, and education.

    ``(b) Application and Term.--A contract between a producer and the 
Secretary under this chapter may--
            ``(1) apply to 1 or more structural practices or 1 or more 
        land management practices, or both; and
            ``(2) have a term of not less than 5, nor more than 10, 
        years, as determined appropriate by the Secretary, depending on 
        the practice or practices that are the basis of the contract.

    ``(c) Structural Practices.--
            ``(1) Offer selection process.--The Secretary shall, to the 
        maximum extent practicable, establish a process for selecting 
        applications for financial assistance if there are numerous 
        applications for assistance for structural practices that would 
        provide substantially the same level of environmental benefits. 
        The process shall be based on--
                    ``(A) a reasonable estimate of the projected cost of 
                the proposals and other factors identified by the 
                Secretary

[[Page 110 STAT. 999]]

                for determining which applications will result in the 
                least cost to the program authorized by this chapter; 
                and
                    ``(B) the priorities established under this subtitle 
                and such other factors determined by the Secretary that 
                maximize environmental benefits per dollar expended.
            ``(2) Concurrence of owner.--If the producer making an offer 
        to implement a structural practice is a tenant of the land 
        involved in agricultural production, for the offer to be 
        acceptable, the producer shall obtain the concurrence of the 
        owner of the land with respect to the offer.

    ``(d) Land Management Practices.--The Secretary shall establish an 
application and evaluation process for awarding technical assistance or 
incentive payments, or both, to a producer in exchange for the 
performance of 1 or more land management practices by the producer.
    ``(e) Cost-Share Payments, Incentive Payments, and Technical 
Assistance.--
            ``(1) Cost-share payments.--
                    ``(A) In general.--The Federal share of cost-share 
                payments to a producer proposing to implement 1 or more 
                structural practices shall be not more than 75 percent 
                of the projected cost of the practice, as determined by 
                the Secretary, taking into consideration any payment 
                received by the producer from a State or local 
                government.
                    ``(B) Limitation.--A producer who owns or operates a 
                large confined livestock operation (as defined by the 
                Secretary) shall not be eligible for cost-share payments 
                to construct an animal waste management facility.
                    ``(C) Other payments.--A producer shall not be 
                eligible for cost-share payments for structural 
                practices on eligible land under this chapter if the 
                producer receives cost-share payments or other benefits 
                for the same land under chapter 1 or 3.
            ``(2) Incentive payments.--The Secretary shall make 
        incentive payments in an amount and at a rate determined by the 
        Secretary to be necessary to encourage a producer to perform 1 
        or more land management practices.
            ``(3) Technical assistance.--
                    ``(A) Funding.--The Secretary shall allocate funding 
                under this chapter for the provision of technical 
                assistance according to the purpose and projected cost 
                for which the technical assistance is provided for a 
                fiscal year. The allocated amount may vary according to 
                the type of expertise required, quantity of time 
                involved, and other factors as determined appropriate by 
                the Secretary. Funding shall not exceed the projected 
                cost to the Secretary of the technical assistance 
                provided for a fiscal year.
                    ``(B) Other authorities.--The receipt of technical 
                assistance under this chapter shall not affect the 
                eligibility of the producer to receive technical 
                assistance under other authorities of law available to 
                the Secretary.
                    ``(C) Private sources.--The Secretary shall ensure 
                that the processes of writing and developing proposals 
                and plans for contracts under this chapter, and of 
                assisting in the implementation of structural practices 
                and land management practices covered by the contracts, 
                are open to individuals in agribusiness, including 
                agricultural

[[Page 110 STAT. 1000]]

                producers, representatives from agricultural 
                cooperatives, agricultural input retail dealers, and 
                certified crop advisers. The requirements of this 
                subparagraph shall also apply to any other conservation 
                program of the Department of Agriculture that provides 
                incentive payments, technical assistance, or cost-share 
                payments.

    ``(f) Modification or Termination of Contracts.--
            ``(1) Voluntary modification or termination.--The Secretary 
        may modify or terminate a contract entered into with a producer 
        under this chapter if--
                    ``(A) the producer agrees to the modification or 
                termination; and
                    ``(B) the Secretary determines that the modification 
                or termination is in the public interest.
            ``(2) Involuntary termination.--The Secretary may terminate 
        a contract under this chapter if the Secretary determines that 
        the producer violated the contract.

    ``(g) Non-Federal Assistance.--The Secretary may request the 
services of a State water quality agency, State fish and wildlife 
agency, State forestry agency, or any other governmental or private 
resource considered appropriate to assist in providing the technical 
assistance necessary for the development and implementation of a 
structural practice or land management practice.

``SEC. 1240C. <<NOTE: 16 USC 3839aa-3.>> EVALUATION OF OFFERS AND 
            PAYMENTS.

    ``In providing technical assistance, cost-share payments, and 
incentive payments to producers, the Secretary shall accord a higher 
priority to assistance and payments that--
            ``(1) are provided in conservation priority areas 
        established under section 1230(c);
            ``(2) maximize environmental benefits per dollar expended; 
        or
            ``(3) are provided in watersheds, regions, or conservation 
        priority areas in which State or local governments have 
        provided, or will provide, financial or technical assistance to 
        producers for the same conservation or environmental purposes.

``SEC. 1240D. <<NOTE: 16 USC 3839aa-4.>> DUTIES OF PRODUCERS.

    ``To receive technical assistance, cost-share payments, or incentive 
payments under this chapter, a producer shall agree--
            ``(1) to implement an environmental quality incentives 
        program plan that describes conservation and environmental goals 
        to be achieved through a structural practice or land management 
        practice, or both, that is approved by the Secretary;
            ``(2) not to conduct any practices on the farm or ranch that 
        would tend to defeat the purposes of this chapter;
            ``(3) on the violation of a term or condition of the 
        contract at any time the producer has control of the land, to 
        refund any cost-share or incentive payment received with 
        interest, and forfeit any future payments under this chapter, as 
        determined by the Secretary;
            ``(4) on the transfer of the right and interest of the 
        producer in land subject to the contract, unless the transferee 
        of the right and interest agrees with the Secretary to assume 
        all obligations of the contract, to refund all cost-share 
        payments and incentive payments received under this chapter, as 
        determined by the Secretary;

[[Page 110 STAT. 1001]]

            ``(5) to supply information as required by the Secretary to 
        determine compliance with the environmental quality incentives 
        program plan and requirements of the program; and
            ``(6) to comply with such additional provisions as the 
        Secretary determines are necessary to carry out the 
        environmental quality incentives program plan.

``SEC. 1240E. <<NOTE: 16 USC 3839aa-5.>> ENVIRONMENTAL QUALITY 
            INCENTIVES PROGRAM PLAN.

    ``(a) In General.--To be eligible to enter into a contract under the 
environmental quality incentives program, an owner or producer of a 
livestock or agricultural operation must submit to the Secretary for 
approval a plan of operations that incorporates such conservation 
practices, and is based on such principles, as the Secretary considers 
necessary to carry out the program, including a description of 
structural practices and land management practices to be implemented and 
the objectives to be met by the plan's implementation.
    ``(b) Avoidance of Duplication.--The Secretary shall, to the maximum 
extent practicable, eliminate duplication of planning activities under 
the environmental quality incentives program and comparable conservation 
programs.

``SEC. 1240F. <<NOTE: 16 USC 3839aa-6.>> DUTIES OF THE SECRETARY.

    ``To the extent appropriate, the Secretary shall assist a producer 
in achieving the conservation and environmental goals of an 
environmental quality incentives program plan by--
            ``(1) providing an eligibility assessment of the farming or 
        ranching operation of the producer as a basis for developing the 
        plan;
            ``(2) providing technical assistance in developing and 
        implementing the plan;
            ``(3) providing technical assistance, cost-share payments, 
        or incentive payments for developing and implementing 1 or more 
        structural practices or 1 or more land management practices, as 
        appropriate;
            ``(4) providing the producer with information, education, 
        and training to aid in implementation of the plan; and
            ``(5) encouraging the producer to obtain technical 
        assistance, cost-share payments, or grants from other Federal, 
        State, local, or private sources.

``SEC. 1240G. <<NOTE: 16 USC 3839aa-7.>> LIMITATION ON PAYMENTS.

    ``(a) In General.--The total amount of cost-share and incentive 
payments paid to a producer under this chapter may not exceed--
            ``(1) $10,000 for any fiscal year; or
            ``(2) $50,000 for any multiyear contract.

    ``(b) Exception to Annual Limit.--The Secretary may exceed the 
limitation on the annual amount of a payment under subsection (a)(1) on 
a case-by-case basis if the Secretary determines that a larger payment 
is--
            ``(1) essential to accomplish the land management practice 
        or structural practice for which the payment is made; and
            ``(2) consistent with the maximization of environmental 
        benefits per dollar expended and the purposes of this chapter 
        specified in section 1240.

    ``(c) Timing of Expenditures.--Expenditures under a contract entered 
into under this chapter during a fiscal year may not be made by the 
Secretary until the subsequent fiscal year.

[[Page 110 STAT. 1002]]

``SEC. 1240H. <<NOTE: 16 USC 3839aa-8.>> TEMPORARY ADMINISTRATION OF 
            ENVIRONMENTAL QUALITY INCENTIVES PROGRAM.

    ``(a) Interim Administration.--
            ``(1) In general.--During the period beginning on the date 
        of enactment of this section and ending on the termination date 
        provided under paragraph (2), to ensure that technical 
        assistance, cost-share payments, and incentive payments continue 
        to be administered in an orderly manner until such time as 
        assistance can be provided through final regulations issued to 
        implement the environmental quality incentives program 
        established under this chapter, the Secretary shall continue 
        to--
                    ``(A) provide technical assistance, cost-share 
                payments, and incentive payments under the terms and 
                conditions of the agricultural conservation program, the 
                Great Plains conservation program, the water quality 
                incentives program, and the Colorado River Basin 
                salinity control program, to the extent the terms and 
                conditions of the program are consistent with the 
                environmental quality incentives program; and
                    ``(B) use for those purposes--
                          ``(i) any funds remaining available for the 
                      agricultural conservation program, the Great 
                      Plains conservation program, the water quality 
                      incentives program, and the Colorado River Basin 
                      salinity control program; and
                          ``(ii) as the Secretary determines to be 
                      necessary, any funds authorized to be used to 
                      carry out the environmental quality incentives 
                      program.
            ``(2) Termination of authority.--The authority of the 
        Secretary to carry out paragraph (1) shall terminate on the date 
        that is 180 days after the date of enactment of this section.

    ``(b) <<NOTE: Effective date.>> Permanent Administration.--Effective 
beginning on the termination date provided under subsection (a)(2), the 
Secretary shall provide technical assistance, cost-share payments, and 
incentive payments for structural practices and land management 
practices related to crop and livestock production in accordance with 
final regulations issued to carry out the environmental quality 
incentives program.''.

SEC. 335. CONSERVATION FARM OPTION.

    Subtitle D of title XII of the Food Security Act of 1985 (16 U.S.C. 
3830 et seq.) (as amended by section 334) is amended by adding at the 
end the following:

                  ``CHAPTER 5--CONSERVATION FARM OPTION

``SEC. 1240M. <<NOTE: 16 USC 3839bb.>> CONSERVATION FARM OPTION.

    ``(a) In General.--The Secretary shall establish conservation farm 
option pilot programs for producers of wheat, feed grains, cotton, and 
rice.
    ``(b) Eligible Owners and Producers.--An owner or producer with a 
farm that has contract acreage enrolled in the agricultural market 
transition program established under the Agricultural Market Transition 
Act shall be eligible to participate in the conservation farm option 
offered under a pilot program under subsection (a)

[[Page 110 STAT. 1003]]

if the owner or producer meets the conditions established under section 
(e).
    ``(c) Purposes.--The purposes of the conservation farm option pilot 
programs shall include--
            ``(1) conservation of soil, water, and related resources;
            ``(2) water quality protection or improvement;
            ``(3) wetland restoration, protection, and creation;
            ``(4) wildlife habitat development and protection; or
            ``(5) other similar conservation purposes.

    ``(d) Conservation Farm Plan.--
            ``(1) In general.--To be eligible to enter into a 
        conservation farm option contract, an owner or producer must 
        prepare and submit to the Secretary, for approval, a 
        conservation farm plan that shall become a part of the 
        conservation farm option contract.
            ``(2) Requirements.--A conservation farm plan shall--
                    ``(A) describe the resource-conserving crop 
                rotations, and all other conservation practices, to be 
                implemented and maintained on the acreage that is 
                subject to contract during the contract period;
                    ``(B) contain a schedule for the implementation and 
                maintenance of the practices described in the 
                conservation farm plan;
                    ``(C) comply with highly erodible land and wetland 
                conservation requirements of this title; and
                    ``(D) contain such other terms as the Secretary may 
                require.

    ``(e) Contracts.--
            ``(1) In general.--On approval of a conservation farm plan, 
        the Secretary may enter into a contract with the owner or 
        producer that specifies the acres being enrolled and the 
        practices being adopted.
            ``(2) Duration of contract.--The contract shall be for a 
        period of 10 years. The contract may be renewed for a period of 
        not to exceed 5 years on mutual agreement of the Secretary and 
        the owner or producer.
            ``(3) Consideration.--In exchange for payments under this 
        subsection, the owner or producer shall not participate in and 
        shall forgo payments under--
                    ``(A) the conservation reserve program established 
                under subchapter B of chapter 1;
                    ``(B) the wetlands reserve program established under 
                subchapter C of chapter 1; and
                    ``(C) the environmental quality incentives program 
                established under chapter 4.
            ``(4) Owner or producer responsibilities under the 
        agreement.--Under the terms of the contract entered into under 
        this section, an owner or producer shall agree to--
                    ``(A) actively comply with the terms and conditions 
                of the approved conservation farm plan;
                    ``(B) <<NOTE: Records.>> keep such records as the 
                Secretary may reasonably require for purposes of 
                evaluation of the implementation of the conservation 
                farm plan; and
                    ``(C) not engage in any activity that would defeat 
                the purposes of the conservation farm option pilot 
                program.
            ``(5) Payments.--The Secretary shall offer an owner or 
        producer annual payments under the contract that are equiva

[[Page 110 STAT. 1004]]

        lent to the payments the owner or producer would have received 
        under the conservation reserve program, the wetlands reserve 
        program, and the environmental quality incentives program.
            ``(6) Balance of benefits.--The Secretary shall not permit 
        an owner or producer to terminate a conservation reserve program 
        contract and enter a conservation farm option contract if the 
        Secretary determines that such action will reduce net 
        environmental benefits.

    ``(f) Secretarial Determinations.--
            ``(1) Acreage estimates.--Prior to each year during which 
        the Secretary intends to offer conservation reserve program 
        contracts, the Secretary shall estimate the number of acres 
        that--
                    ``(A) will be retired under the conservation farm 
                option under the terms and conditions the Secretary 
                intends to offer for that program; and
                    ``(B) would be retired under the conservation 
                reserve program if the conservation farm option were not 
                available.
            ``(2) Total land retirement.--The Secretary shall announce a 
        number of acres to be enrolled in the conservation reserve 
        program that will result in a total number of acres retired 
        under the conservation reserve program and the conservation farm 
        option that does not exceed the amount estimated under paragraph 
        (1)(B) for the current or future years.
            ``(3) Limitation.--The Secretary shall not enroll additional 
        conservation reserve program contracts to offset the land 
        retired under the conservation farm option.

    ``(g) Commodity Credit Corporation.--The Secretary shall use the 
funds, authorities, and facilities of the Commodity Credit Corporation 
to carry out this subsection.
    ``(h) Funding.--Of the funds of the Commodity Credit Corporation, 
the Corporation shall make available to carry out this section--
            ``(1) $7,500,000 for fiscal year 1997;
            ``(2) $15,000,000 for fiscal year 1998;
            ``(3) $25,000,000 for fiscal year 1999;
            ``(4) $37,500,000 for fiscal year 2000;
            ``(5) $50,000,000 for fiscal year 2001; and
            ``(6) $62,500,000 for fiscal year 2002.''.

SEC. 336. REPEAL OF SUPERSEDED AUTHORITIES.

    (a) Agricultural Conservation Program.--
            (1) Elimination.--
                    (A) Section 8 of the Soil Conservation and Domestic 
                Allotment Act (16 U.S.C. 590h) is amended--
                          (i) in subsection (b)--
                                    (I) by striking paragraphs (1) 
                                through (4) and inserting the following:
            ``(1) Environmental quality incentives program.--The 
        Secretary shall provide technical assistance, cost-share 
        payments, and incentive payments to operators through the 
        environmental quality incentives program in accordance with 
        chapter 4 of subtitle D of title XII of the Food Security Act of 
        1985.''; and
                                    (II) by striking paragraphs (6) 
                                through (8); and
                          (ii) by striking subsections (d), (e), and 
                      (f).

[[Page 110 STAT. 1005]]

                    (B) The first sentence of section 11 of the Soil 
                Conservation and Domestic Allotment Act (16 U.S.C. 590k) 
                is amended by striking ``performance: Provided 
                further,'' and all that follows through ``or other law'' 
                and inserting ``performance''.
                    (C) Section 14 of the Soil Conservation and Domestic 
                Allotment Act (16 U.S.C. 590n) is amended--
                          (i) in the first sentence, by striking ``or 
                      8''; and
                          (ii) by striking the second sentence.
                    (D) Section 15 of the Soil Conservation and Domestic 
                Allotment Act (16 U.S.C. 590o) is amended--
                          (i) in the first undesignated paragraph--
                                    (I) in the first sentence, by 
                                striking ``sections 7 and 8'' and 
                                inserting ``section 7''; and
                                    (II) by striking the third sentence; 
                                and
                          (ii) by striking the second undesignated 
                      paragraph.
            (2) Conforming amendments.--
                    (A) Paragraph (1) of the last proviso of the matter 
                under the heading ``conservation reserve program'' under 
                the heading ``Soil Bank Programs'' of title I of the 
                Department of Agriculture and Farm Credit Administration 
                Appropriation Act, 1959 (72 Stat. 195; 7 U.S.C. 1831a), 
                is amended by striking ``Agricultural Conservation 
                Program'' and inserting ``environmental quality 
                incentives program established under chapter 4 of 
                subtitle D of title XII of the Food Security Act of 
                1985''.
                    (B) Section 4 of the Cooperative Forestry Assistance 
                Act of 1978 (16 U.S.C. 2103) is amended by striking ``as 
                added by the Agriculture and Consumer Protection Act of 
                1973'' each place it appears in subsections (d) and (i) 
                and inserting ``as in effect before the amendment made 
                by section 336(d)(1) of the Federal Agriculture 
                Improvement and Reform Act of 1996''.
                    (C) Section 226(b)(4) of the Department of 
                Agriculture Reorganization Act of 1994 (7 U.S.C. 
                6932(b)(4)) is amended by striking ``and the 
                agricultural conservation program under the Soil 
                Conservation and Domestic Allotment Act (16 U.S.C. 590g 
                et seq.)''.
                    (D) Section 246(b)(8) of the Department of 
                Agriculture Reorganization Act of 1994 (7 U.S.C. 
                6962(b)(8)) is amended by striking ``and the 
                agricultural conservation program under the Soil 
                Conservation and Domestic Allotment Act (16 U.S.C. 590g 
                et seq.)''.
                    (E) Section 1271(c)(3)(C) of the Food, Agriculture, 
                Conservation, and Trade Act of 1990 (16 U.S.C. 
                2106a(c)(3)(C)) is amended by striking ``Agricultural 
                Conservation Program established under section 16(b) of 
                the Soil Conservation and Domestic Allotment Act (16 
                U.S.C. 590h, 590l, or 590p)'' and inserting 
                ``environmental quality incentives program established 
                under chapter 4 of subtitle D of title XII of the Food 
                Security Act of 1985''.
                    (F) Section 304(a) of the Lake Champlain Special 
                Designation Act of 1990 (Public Law 101-596; 33 U.S.C. 
                1270 note) is amended--
                          (i) in the subsection heading, by striking 
                      ``Special Project Area Under the Agricultural 
                      Conservation Program'' and inserting ``Priority 
                      Area Under

[[Page 110 STAT. 1006]]

                      the Environmental Quality Incentives Program''; 
                      and
                          (ii) in paragraph (1), by striking ``special 
                      project area under the Agricultural Conservation 
                      Program established under section 8(b) of the Soil 
                      Conservation and Domestic Allotment Act (16 U.S.C. 
                      590h(b))'' and inserting ``priority area under the 
                      environmental quality incentives program 
                      established under chapter 4 of subtitle D of title 
                      XII of the Food Security Act of 1985''.
                    (G) Section 6 of the Department of Agriculture 
                Organic Act of 1956 (70 Stat. 1033) <<NOTE: 16 USC 590h-
                4.>>  is amended by striking subsection (b).

    (b) Great Plains Conservation Program.--
            (1) Elimination.--Section 16 of the Soil Conservation and 
        Domestic Allotment Act (16 U.S.C. 590p) is repealed.
            (2) Conforming amendments.--
                    (A) The Agricultural Adjustment Act of 1938 is 
                amended by striking ``Great Plains program'' each place 
                it appears in sections 344(f)(8) and 377 (7 U.S.C. 
                1344(f)(8) and 1377) and inserting ``environmental 
                quality incentives program established under chapter 4 
                of subtitle D of title XII of the Food Security Act of 
                1985''.
                    (B) Section 246(b) of the Department of Agriculture 
                Reorganization Act of 1994 (7 U.S.C. 6962(b)) is amended 
                by striking paragraph (2).

    (c) Colorado River Basin Salinity Control Program.--
            (1) In general.--Section 202 of the Colorado River Basin 
        Salinity Control Act (43 U.S.C. 1592) is amended by striking 
        subsection (c) and inserting the following:

    ``(c) Salinity Control Measures.--The Secretary of Agriculture shall 
carry out salinity control measures (including watershed enhancement and 
cost-share measures with livestock and crop producers) in the Colorado 
River Basin as part of the environmental quality incentives program 
established under chapter 4 of subtitle D of title XII of the Food 
Security Act of 1985.''.
            (2) Funds.--Section 205 of the Colorado River Basin Salinity 
        Control Act (43 U.S.C. 1595) is amended--
                    (A) in subsection (a), by striking ``pursuant to 
                section 202(c)(2)(C)''; and
                    (B) by adding at the end the following:

    ``(f) Funds.--The Secretary may expend funds available in the Basin 
Funds referred to in this section to carry out cost-share salinity 
measures in a manner that is consistent with the cost allocations 
required under this section.''.
            (3) Conforming amendment.--Section 246(b)(6) of the 
        Department of Agriculture Reorganization Act of 1994 (7 U.S.C. 
        6962(b)(6)) is amended by striking ``program'' and inserting 
        ``measures''.

    (d) Rural Environmental Conservation Program.--
            (1) Elimination.--Title X of the Agricultural Act of 1970 
        (16 U.S.C. 1501 et seq.) is repealed.
            (2) Conforming amendments.--Section 246 of the Department of 
        Agriculture Reorganization Act of 1994 (7 U.S.C. 6962) (as 
        amended by subsection (b)(2)(B)) is amended--
                    (A) in subsection (b)--
                          (i) by striking paragraph (1); and

[[Page 110 STAT. 1007]]

                          (ii) by redesignating paragraphs (3) through 
                      (8) as paragraphs (1) through (6), respectively; 
                      and
                    (B) in subsection (c), by striking ``(2), (3), (4), 
                and (6)'' and inserting ``(1), (2), and (4)''.

    (e) Other Conservation Provisions.--Subtitle F of title XII of the 
Food Security Act of 1985 (16 U.S.C. 2005a and 2101 note) is repealed.
    (f) Resource Conservation.--
            (1) Elimination.--Subtitles A, B, D, E, and F of title XV of 
        the Agriculture and Food Act of 1981 (95 Stat. 1328; 16 U.S.C. 
        3401 et seq.) are repealed.
            (2) Conforming amendment.--Section 739 of the Agriculture, 
        Rural Development, Food and Drug Administration, and Related 
        Agencies Appropriations Act, 1992 (7 U.S.C. 2272a), is repealed.

    (g) Technical Amendment.--The first sentence of the matter under the 
heading ``Commodity Credit Corporation'' of Public Law 99-263 (100 Stat. 
59; 16 U.S.C. 3841 note) is amended by striking ``prices: Provided 
further,'' and all that follows through ``Acts.'' and inserting 
``prices.''.
    (h) Agricultural Water Quality Incentives Program.--Chapter 2 of 
subtitle D of title XII of the Food Security Act of 1985 (16 U.S.C. 3838 
et seq.) is repealed.

           Subtitle E--Conservation Funding and Administration

SEC. 341. CONSERVATION FUNDING AND ADMINISTRATION.

    Subtitle E of title XII of the Food Security Act of 1985 (16 U.S.C. 
3841 et seq.) is amended to read as follows:

                ``Subtitle E--Funding and Administration

``SEC. 1241. <<NOTE: 16 USC 3841.>> FUNDING.

    ``(a) Mandatory Expenses.--For each of fiscal years 1996 through 
2002, the Secretary shall use the funds of the Commodity Credit 
Corporation to carry out the programs authorized by--
            ``(1) subchapter B of chapter 1 of subtitle D (including 
        contracts extended by the Secretary pursuant to section 1437 of 
        the Food, Agriculture, Conservation, and Trade Act of 1990 
        (Public Law 101-624; 16 U.S.C. 3831 note));
            ``(2) subchapter C of chapter 1 of subtitle D; and
            ``(3) chapter 4 of subtitle D.

    ``(b) Environmental Quality Incentives Program.--
            ``(1) In general.--Of the funds of the Commodity Credit 
        Corporation, the Secretary shall make available $130,000,000 for 
        fiscal year 1996, and $200,000,000 for each of fiscal years 1997 
        through 2002, for providing technical assistance, cost-share 
        payments, incentive payments, and education under the 
        environmental quality incentives program under chapter 4 of 
        subtitle D.
            ``(2) Livestock production.--For each of fiscal years 1996 
        through 2002, 50 percent of the funding available for technical 
        assistance, cost-share payments, incentive payments, and edu

[[Page 110 STAT. 1008]]

        cation under the environmental quality incentives program shall 
        be targeted at practices relating to livestock production.

``SEC. 1242. <<NOTE: 16 USC 3842.>> USE OF OTHER AGENCIES.

    ``(a) Committees.--In carrying out subtitles B, C, and D, the 
Secretary shall use the services of local, county, and State committees 
established under section 8(b) of the Soil Conservation and Domestic 
Allotment Act (16 U.S.C. 590h(b)).
    ``(b) Other Agencies.--
            ``(1) Use.--In carrying out subtitles C and D, the Secretary 
        may utilize the services of the Natural Resources Conservation 
        Service and the Forest Service, the Fish and Wildlife Service, 
        State forestry agencies, State fish and game agencies, land-
        grant colleges, local, county, and State committees established 
        under section 8(b) of the Soil Conservation and Domestic 
        Allotment Act (16 U.S.C. 590h), soil and water conservation 
        districts, and other appropriate agencies.
            ``(2) Consultation.--In carrying out subtitle D at the State 
        and county levels, the Secretary shall consult with, to the 
        extent practicable, the Fish and Wildlife Service, State 
        forestry agencies, State fish and game agencies, land-grant 
        colleges, soil-conservation districts, and other appropriate 
        agencies.

``SEC. 1243. <<NOTE: 16 USC 3843.>> ADMINISTRATION.

    ``(a) Plans.--The Secretary shall, to the extent practicable, avoid 
duplication in--
            ``(1) the conservation plans required for--
                    ``(A) highly erodible land conservation under 
                subtitle B;
                    ``(B) the conservation reserve program established 
                under subchapter B of chapter 1 of subtitle D; and
                    ``(C) the wetlands reserve program established under 
                subchapter C of chapter 1 of subtitle D; and
            ``(2) the environmental quality incentives program 
        established under chapter 4 of subtitle D.

    ``(b) Acreage Limitation.--
            ``(1) In general.--The Secretary shall not enroll more than 
        25 percent of the cropland in any county in the programs 
        administered under the conservation reserve and wetlands reserve 
        programs established under subchapters B and C, respectively, of 
        chapter 1 of subtitle D. Not more than 10 percent of the 
        cropland in a county may be subject to an easement acquired 
        under the subchapters.
            ``(2) Exception.--The Secretary may exceed the limitations 
        in paragraph (1) if the Secretary determines that--
                    ``(A) the action would not adversely affect the 
                local economy of a county; and
                    ``(B) operators in the county are having 
                difficulties complying with conservation plans 
                implemented under section 1212.
            ``(3) Shelterbelts and windbreaks.--The limitations 
        established under this subsection shall not apply to cropland 
        that is subject to an easement under chapter 1 or 3 of subtitle 
        D that is used for the establishment of shelterbelts and 
        windbreaks.

    ``(c) Tenant Protection.--Except for a person who is a tenant on 
land that is subject to a conservation reserve contract that has been 
extended by the Secretary, the Secretary shall provide

[[Page 110 STAT. 1009]]

adequate safeguards to protect the interests of tenants and 
sharecroppers, including provision for sharing, on a fair and equitable 
basis, in payments under the programs established under subtitles B 
through D.
    ``(d) Provision of Technical Assistance by Other Sources.--In the 
preparation and application of a conservation compliance plan under 
subtitle B or similar plan required as a condition for assistance from 
the Department of Agriculture, the Secretary shall permit persons to 
secure technical assistance from approved sources, as determined by the 
Secretary, other than the Natural Resources Conservation Service. If the 
Secretary rejects a technical determination made by such a source, the 
basis of the Secretary's determination must be supported by documented 
evidence.
    ``(e) Regulations.--Not later than 90 days after the date of 
enactment of the Federal Agriculture Improvement and Reform Act of 1996, 
the Secretary shall issue regulations to implement the conservation 
reserve and wetlands reserve programs established under chapter 1 of 
subtitle D.''.

SEC. 342. STATE TECHNICAL COMMITTEES.

    (a) Composition.--Section 1261(c) of the Food Security Act of 1985 
(16 U.S.C. 3861(c))--
            (1) in paragraph (7), by striking ``and'' at the end;
            (2) in paragraph (8), by striking the period at the end and 
        inserting a semicolon; and
            (3) by adding at the end the following:
            ``(9) agricultural producers with demonstrable conservation 
        expertise;
            ``(10) nonprofit organizations with demonstrable 
        conservation expertise;
            ``(11) persons knowledgeable about conservation techniques; 
        and
            ``(12) agribusiness.''.

    (b) Responsibilities.--Section 1262 of the Food Security Act of 1985 
(16 U.S.C. 3862) is amended--
            (1) in subsection (a), by adding at the end the following: 
        ``Each State technical committee shall provide public notice of, 
        and permit public attendance at meetings considering, issues of 
        concern related to carrying out this title.'';
            (2) in subsection (b)(1), by adding at the end the 
        following: ``Each State technical committee shall establish 
        criteria and guidelines for evaluating petitions by agricultural 
        producers regarding new conservation practices and systems not 
        already described in field office technical guides.''; and
            (3) in subsection (c)--
                    (A) in paragraph (7), by striking ``and'' at the 
                end;
                    (B) by redesignating paragraph (8) as paragraph (9); 
                and
                    (C) by inserting after paragraph (7) the following:
            ``(8) establishing criteria and priorities for State 
        initiatives under the environmental quality incentives program 
        under chapter 4 of subtitle D; and''.

SEC. 343. <<NOTE: 16 USC 3862 note.>> PUBLIC NOTICE AND COMMENT FOR 
            REVISIONS TO CERTAIN STATE TECHNICAL GUIDES.

    After the date of enactment of this Act, the Secretary of 
Agriculture shall provide for public notice and comment under section

[[Page 110 STAT. 1010]]

553 of title 5, United States Code, with regard to any future revisions 
to those provisions of the Natural Resources Conservation Service State 
technical guides that are used to carry out subtitles A, B, and C of 
title XII of the Food Security Act of 1985 (16 U.S.C. 3801 et seq.).

 Subtitle F <<NOTE: National Natural Resources Conservation Foundation 
Act.>> --National Natural Resources Conservation Foundation

SEC. 351. <<NOTE: 16 USC 5801 note.>> SHORT TITLE.

    This subtitle may be cited as the ``National Natural Resources 
Conservation Foundation Act''.

SEC. 352. <<NOTE: 16 USC 5801.>> DEFINITIONS.

    In this subtitle (unless the context otherwise requires):
            (1) Board.--The term ``Board'' means the Board of Trustees 
        established under section 354.
            (2) Department.--The term ``Department'' means the 
        Department of Agriculture.
            (3) Foundation.--The term ``Foundation'' means the National 
        Natural Resources Conservation Foundation established by section 
        353(a).
            (4) Secretary.--The term ``Secretary'' means the Secretary 
        of Agriculture.

SEC. 353. <<NOTE: 16 USC 5802.>> NATIONAL NATURAL RESOURCES CONSERVATION 
            FOUNDATION.

    (a) Establishment.--A National Natural Resources Conservation 
Foundation is established as a charitable and nonprofit corporation for 
charitable, scientific, and educational purposes specified in subsection 
(b). The Foundation is not an agency or instrumentality of the United 
States.
    (b) Duties.--The Foundation shall--
            (1) promote innovative solutions to the problems associated 
        with the conservation of natural resources on private lands, 
        particularly with respect to agriculture and soil and water 
        conservation;
            (2) promote voluntary partnerships between government and 
        private interests in the conservation of natural resources;
            (3) conduct research and undertake educational activities, 
        conduct and support demonstration projects, and make grants to 
        State and local agencies and nonprofit organizations;
            (4) provide such other leadership and support as may be 
        necessary to address conservation challenges, such as the 
        prevention of excessive soil erosion, the enhancement of soil 
        and water quality, and the protection of wetlands, wildlife 
        habitat, and strategically important farmland subject to urban 
        conversion and fragmentation;
            (5) encourage, accept, and administer private gifts of money 
        and real and personal property for the benefit of, or in 
        connection with, the conservation and related activities and 
        services of the Department, particularly the Natural Resources 
        Conservation Service;
            (6) undertake, conduct, and encourage educational, 
        technical, and other assistance, and other activities, that 
        support the conservation and related programs administered by 
        the

[[Page 110 STAT. 1011]]

        Department (other than activities carried out on National Forest 
        System lands), particularly the Natural Resources Conservation 
        Service, except that the Foundation may not enforce or 
        administer a regulation of the Department; and
            (7) raise private funds to promote the purposes of the 
        Foundation.

    (c) Limitations and Conflicts of Interest.--
            (1) Political activities.--The Foundation shall not 
        participate or intervene in a political campaign on behalf of 
        any candidate for public office.
            (2) Conflicts of interest.--No director, officer, or 
        employee of the Foundation shall participate, directly or 
        indirectly, in the consideration or determination of any 
        question before the Foundation affecting--
                    (A) the financial interests of the director, 
                officer, or employee; or
                    (B) the interests of any corporation, partnership, 
                entity, organization, or other person in which the 
                director, officer, or employee--
                          (i) is an officer, director, or trustee; or
                          (ii) has any direct or indirect financial 
                      interest.
            (3) Legislation or government action or policy.--No funds of 
        the Foundation may be used in any manner for the purpose of 
        influencing legislation or government action or policy.
            (4) Litigation.--No funds of the Foundation may be used to 
        bring or join an action against the United States.

SEC. 354. <<NOTE: 16 USC 5803.>> COMPOSITION AND OPERATION.

    (a) Composition.--The Foundation shall be administered by a Board of 
Trustees that shall consist of 9 voting members, each of whom shall be a 
United States citizen and not a Federal officer. The Board shall be 
composed of--
            (1) individuals with expertise in agricultural conservation 
        policy matters;
            (2) a representative of private sector organizations with a 
        demonstrable interest in natural resources conservation;
            (3) a representative of statewide conservation 
        organizations;
            (4) a representative of soil and water conservation 
        districts;
            (5) a representative of organizations outside the Federal 
        Government that are dedicated to natural resources conservation 
        education; and
            (6) a farmer or rancher.

    (b) Nongovernmental Employees.--Service as a member of the Board 
shall not constitute employment by, or the holding of, an office of the 
United States for the purposes of any Federal law.
    (c) Membership.--
            (1) Initial members.--The Secretary shall appoint 9 persons 
        who meet the criteria established under subsection (a) as the 
        initial members of the Board and designate 1 of the members as 
        the initial chairperson for a 2-year term.
            (2) Terms of office.--
                    (A) In general.--A member of the Board shall serve 
                for a term of 3 years, except that the members appointed

[[Page 110 STAT. 1012]]

                to the initial Board shall serve, proportionately, for 
                terms of 1, 2, and 3 years, as determined by the 
                Secretary.
                    (B) Limitation on terms.--No individual may serve 
                more than 2 consecutive 3-year terms as a member of the 
                Board.
            (3) Subsequent members.--The initial members of the Board 
        shall adopt procedures in the constitution of the Foundation for 
        the nomination and selection of subsequent members of the Board. 
        The procedures shall require that each member, at a minimum, 
        meets the criteria established under subsection (a) and shall 
        provide for the selection of an individual, who is not a Federal 
        officer or a member of the Board.

    (d) Chairperson.--After the appointment of an initial chairperson 
under subsection (c)(1), each succeeding chairperson of the Board shall 
be elected by the members of the Board for a 2-year term.
    (e) Vacancies.--A vacancy on the Board shall be filled by the Board 
not later than 60 days after the occurrence of the vacancy.
    (f) Compensation.--A member of the Board shall receive no 
compensation from the Foundation for the service of the member on the 
Board.
    (g) Travel Expenses.--While away from the home or regular place of 
business of a member of the Board in the performance of services for the 
Board, the member shall be allowed travel expenses paid by the 
Foundation, including per diem in lieu of subsistence, at the same rate 
as a person employed intermittently in the Government service is allowed 
under section 5703 of title 5, United States Code.

SEC. 355. <<NOTE: 16 USC 5804.>> OFFICERS AND EMPLOYEES.

    (a) In General.--The Board may--
            (1) appoint, hire, and discharge the officers and employees 
        of the Foundation, other than appoint the initial Executive 
        Director of the Foundation;
            (2) adopt a constitution and bylaws for the Foundation that 
        are consistent with the purposes of this subtitle; and
            (3) undertake any other activities that may be necessary to 
        carry out this subtitle.

    (b) Officers and Employees.--
            (1) Appointment and hiring.--An officer or employee of the 
        Foundation--
                    (A) shall not, by virtue of the appointment or 
                employment of the officer or employee, be considered a 
                Federal employee for any purpose, including the 
                provisions of title 5, United States Code, governing 
                appointments in the competitive service, except that 
                such an individual may participate in the Federal 
                employee retirement system as if the individual were a 
                Federal employee; and
                    (B) may not be paid by the Foundation a salary in 
                excess of $125,000 per year.
            (2) Executive director.--
                    (A) Initial director.--The Secretary shall appoint 
                an individual to serve as the initial Executive Director 
                of the Foundation who shall serve, at the direction of 
                the Board, as the chief operating officer of the 
                Foundation.
                    (B) Subsequent directors.--The Board shall appoint 
                each subsequent Executive Director of the Foundation who

[[Page 110 STAT. 1013]]

                shall serve, at the direction of the Board, as the chief 
                operating officer of the Foundation.
                    (C) Qualifications.--The Executive Director shall be 
                knowledgeable and experienced in matters relating to 
                natural resources conservation.

SEC. 356. <<NOTE: 16 USC 5805.>> CORPORATE POWERS AND OBLIGATIONS OF THE 
            FOUNDATION.

    (a) In General.--The Foundation--
            (1) may conduct business throughout the United States and 
        the territories and possessions of the United States; and
            (2) shall at all times maintain a designated agent who is 
        authorized to accept service of process for the Foundation, so 
        that the serving of notice to, or service of process on, the 
        agent, or mailed to the business address of the agent, shall be 
        considered as service on or notice to the Foundation.

    (b) Seal.--The Foundation shall have an official seal selected by 
the Board that shall be judicially noticed.
    (c) Powers.--To carry out the purposes of the Foundation under 
section 353(b), the Foundation shall have, in addition to the powers 
otherwise provided under this subtitle, the usual powers of a 
corporation, including the power--
            (1) to accept, receive, solicit, hold, administer, and use 
        any gift, devise, or bequest, either absolutely or in trust, of 
        real or personal property or any income from, or other interest 
        in, the gift, devise, or bequest;
            (2) to acquire by purchase or exchange any real or personal 
        property or interest in property, except that funds provided 
        under section 360 may not be used to purchase an interest in 
        real property;
            (3) unless otherwise required by instrument of transfer, to 
        sell, donate, lease, invest, reinvest, retain, or otherwise 
        dispose of any property or income from property;
            (4) to borrow money from private sources and issue bonds, 
        debentures, or other debt instruments, subject to section 359, 
        except that the aggregate amount of the borrowing and debt 
        instruments outstanding at any time may not exceed $1,000,000;
            (5) to sue and be sued, and complain and defend itself, in 
        any court of competent jurisdiction, except that a member of the 
        Board shall not be personally liable for an action in the 
        performance of services for the Board, except for gross 
        negligence;
            (6) to enter into a contract or other agreement with an 
        agency of State or local government, educational institution, or 
        other private organization or person and to make such payments 
        as may be necessary to carry out the functions of the 
        Foundation; and
            (7) to do any and all acts that are necessary to carry out 
        the purposes of the Foundation.

    (d) Interests in Property.--
            (1) Interests in real property.--The Foundation may acquire, 
        hold, and dispose of lands, waters, or other interests in real 
        property by donation, gift, devise, purchase, or exchange. An 
        interest in real property shall be treated, among other things, 
        as including an easement or other right for the preservation, 
        conservation, protection, or enhancement of agricultural,

[[Page 110 STAT. 1014]]

        natural, scenic, historic, scientific, educational, 
        inspirational, or recreational resources.
            (2) Gifts.--A gift, devise, or bequest may be accepted by 
        the Foundation even though the gift, devise, or bequest is 
        encumbered, restricted, or subject to a beneficial interest of a 
        private person if any current or future interest in the gift, 
        devise, or bequest is for the benefit of the Foundation.

SEC. 357. <<NOTE: 16 USC 5806.>> ADMINISTRATIVE SERVICES AND SUPPORT.

    For each of fiscal years 1996 through 1998, the Secretary may 
provide, without reimbursement, personnel, facilities, and other 
administrative services of the Department to the Foundation.

SEC. 358. <<NOTE: 16 USC 5807.>> AUDITS AND PETITION OF ATTORNEY GENERAL 
            FOR EQUITABLE RELIEF.

    (a) Audits.--
            (1) In general.--The accounts of the Foundation shall be 
        audited in accordance with Public Law 88-504 (36 U.S.C. 1101 et 
        seq.), including an audit of lobbying and litigation activities 
        carried out by the Foundation.
            (2) Conforming amendment.--The first section of Public Law 
        88-504 (36 U.S.C. 1101) is amended by adding at the end the 
        following:
            ``(77) The National Natural Resources Conservation 
        Foundation.''.

    (b) Relief With Respect to Certain Foundation Acts or Failure To 
Act.--The Attorney General may petition in the United States District 
Court for the District of Columbia for such equitable relief as may be 
necessary or appropriate, if the Foundation--
            (1) engages in, or threatens to engage in, any act, 
        practice, or policy that is inconsistent with this subtitle; or
            (2) refuses, fails, neglects, or threatens to refuse, fail, 
        or neglect, to discharge the obligations of the Foundation under 
        this subtitle.

SEC. 359. <<NOTE: 16 USC 5808.>> RELEASE FROM LIABILITY.

    (a) In General.--The United States shall not be liable for any debt, 
default, act, or omission of the Foundation. The full faith and credit 
of the United States shall not extend to the Foundation.
    (b) Statement.--An obligation issued by the Foundation, and a 
document offering an obligation, shall include a prominent statement 
that the obligation is not directly or indirectly guaranteed, in whole 
or in part, by the United States (or an agency or instrumentality of the 
United States).

SEC. 360. <<NOTE: 16 USC 5809.>> AUTHORIZATION OF APPROPRIATIONS.

    There are authorized to be appropriated to the Department to be made 
available to the Foundation $1,000,000 for each of fiscal years 1997 
through 1999 to initially establish and carry out activities of the 
Foundation.

[[Page 110 STAT. 1015]]

                          Subtitle G--Forestry

SEC. 371. OFFICE OF INTERNATIONAL FORESTRY.

    Section 2405 of the Food, Agriculture, Conservation, and Trade Act 
of 1990 (7 U.S.C. 6704) is amended by adding at the end the following:
    ``(d) Authorization of Appropriations.--There are authorized to be 
appropriated for each of fiscal years 1996 through 2002 such sums as are 
necessary to carry out this section.''.

SEC. 372. COOPERATIVE WORK FOR PROTECTION, MANAGEMENT, AND IMPROVEMENT 
            OF NATIONAL FOREST SYSTEM.

    The penultimate paragraph of the matter under the heading ``FOREST 
SERVICE.'' of the first section of the Act of June 30, 1914 (38 Stat. 
430, chapter 131; 16 U.S.C. 498), is amended--
            (1) by inserting ``, management,'' after ``the protection'';
            (2) by striking ``national forests,'' and inserting 
        ``National Forest System,'';
            (3) by inserting ``management,'' after ``protection,'' both 
        places it appears; and
            (4) by adding at the end the following: ``Payment for work 
        undertaken pursuant to this paragraph may be made from any 
        appropriation of the Forest Service that is available for 
        similar work if a written agreement so provides and 
        reimbursement will be provided by a cooperator in the same 
        fiscal year as the expenditure by the Forest Service. A 
        reimbursement received from a cooperator that covers the 
        proportionate share of the cooperator of the cost of the work 
        shall be deposited to the credit of the appropriation of the 
        Forest Service from which the payment was initially made or, if 
        the appropriation is no longer available, to the credit of an 
        appropriation of the Forest Service that is available for 
        similar work. <<NOTE: Rules.>> The Secretary of Agriculture 
        shall establish written rules that establish criteria to be used 
        to determine whether the acceptance of contributions of money 
        under this paragraph would adversely affect the ability of an 
        officer or employee of the Department of Agriculture to carry 
        out a duty or program of the officer or employee in a fair and 
        objective manner or would compromise, or appear to compromise, 
        the integrity of the program, officer, or 
        employee. <<NOTE: Rules.>> The Secretary of Agriculture shall 
        establish written rules that protect the interests of the Forest 
        Service in cooperative work agreements.''.

SEC. 373. FORESTRY INCENTIVES PROGRAM.

    Section 4 of the Cooperative Forestry Assistance Act of 1978 (16 
U.S.C. 2103) is amended--
            (1) in subsection (j), by striking ``annually'' and 
        inserting ``for each of fiscal years 1996 through 2002''; and
            (2) by striking subsection (k).

SEC. 374. OPTIONAL STATE GRANTS FOR FOREST LEGACY PROGRAM.

    Section 7 of the Cooperative Forestry Assistance Act of 1978 (16 
U.S.C. 2103c) is amended--
            (1) by redesignating subsection (l) as subsection (m); and
            (2) by inserting after subsection (k) the following:

    ``(l) Optional State Grants.--

[[Page 110 STAT. 1016]]

            ``(1) In general.--The Secretary shall, at the request of a 
        participating State, provide a grant to the State to carry out 
        the Forest Legacy Program in the State.
            ``(2) Administration.--If a State elects to receive a grant 
        under this subsection--
                    ``(A) the Secretary shall use a portion of the funds 
                made available under subsection (m), as determined by 
                the Secretary, to provide a grant to the State; and
                    ``(B) the State shall use the grant to carry out the 
                Forest Legacy Program in the State, including the 
                acquisition by the State of lands and interests in 
                lands.''.

            Subtitle H--Miscellaneous Conservation Provisions

SEC. 381. CONSERVATION ACTIVITIES OF COMMODITY CREDIT CORPORATION.

    (a) In General.--Section 5 of the Commodity Credit Corporation 
Charter Act (15 U.S.C. 714c) is amended--
            (1) by redesignating subsection (g) as subsection (h); and
            (2) by inserting after subsection (f) the following:

    ``(g) Carry out conservation or environmental programs authorized by 
law.''.
    (b) <<NOTE: 15 USC 714c note.>> Effective Date.--The amendments made 
by subsection (a) shall become effective on January 1, 1997.

SEC. 382. FLOODPLAIN EASEMENTS.

    Section 403 of the Agricultural Credit Act of 1978 (16 U.S.C. 2203) 
is amended by inserting ``, including the purchase of floodplain 
easements,'' after ``emergency measures''.

SEC. 383. RESOURCE CONSERVATION AND DEVELOPMENT PROGRAM.

    Section 1538 of the Agriculture and Food Act of 1981 (16 U.S.C. 
3461) is amended by striking ``1991 through 1995'' and inserting ``1996 
through 2002''.

SEC. 384. REPEAL OF REPORT REQUIREMENT.

    Section 1342 of title 44, United States Code, is repealed.

SEC. 385. <<NOTE: 7 USC 7334.>> FLOOD RISK REDUCTION.

    (a) In General.--During fiscal years 1996 through 2002, the 
Secretary of Agriculture (referred to in this section as the 
``Secretary'') may enter into a contract with a producer on a farm who 
has contract acreage under the Agricultural Market Transition Act that 
is frequently flooded.
    (b) Duties of Producers.--Under the terms of the contract, with 
respect to acres that are subject to the contract, the producer must 
agree to--
            (1) the termination of any contract acreage and production 
        flexibility contract under the Agricultural Market Transition 
        Act;
            (2) forgo loans for contract commodities, oilseeds, and 
        extra long staple cotton;
            (3) not apply for crop insurance issued or reinsured by the 
        Secretary;
            (4) comply with applicable highly erodible land and wetlands 
        conservation compliance requirements established under

[[Page 110 STAT. 1017]]

        title XII of the Food Security Act of 1985 (16 U.S.C. 3801 et 
        seq.);
            (5) not apply for any conservation program payments from the 
        Secretary;
            (6) not apply for disaster program benefits provided by the 
        Secretary; and
            (7) refund the payments, with interest, issued under the 
        flood risk reduction contract to the Secretary, if the producer 
        violates the terms of the contract or if the producer transfers 
        the property to another person who violates the contract.

    (c) Duties of the Secretary.--In return for a contract entered into 
by a producer under this section, the Secretary shall pay the producer 
an amount that is not more than 95 percent of projected contract 
payments under the Agricultural Market Transition Act that the Secretary 
estimates the producer would otherwise have received during the period 
beginning at the time the contract is entered into under this section 
and ending September 30, 2002.
    (d) Commodity Credit Corporation.--The Secretary shall carry out the 
program authorized by this section (other than subsection (e)) through 
the Commodity Credit Corporation.
    (e) Additional Payments.--
            (1) In general.--Subject to the availability of advanced 
        appropriations, the Secretary may make payments to a producer 
        described in subsection (a), in addition to the payments 
        provided under subsection (c), to offset other estimated Federal 
        Government outlays on frequently flooded land.
            (2) Authorization of appropriations.--There are authorized 
        to be appropriated such sums as are necessary to carry out 
        paragraph (1).

    (f) Limitation on Payments.--Amounts made available for production 
flexibility contracts under section 113 shall be reduced by an amount 
that is equal to the contract payments that producers forgo under 
subsection (b)(1) of this section.

SEC. 386. <<NOTE: 16 USC 2005b.>> CONSERVATION OF PRIVATE GRAZING LAND.

    (a) Findings.--Congress finds that--
            (1) private grazing land constitutes nearly \1/2\ of the 
        non-Federal land of the United States and is basic to the 
        environmental, social, and economic stability of rural 
        communities;
            (2) private grazing land contains a complex set of 
        interactions among soil, water, air, plants, and animals;
            (3) grazing land constitutes the single largest watershed 
        cover type in the United States and contributes significantly to 
        the quality and quantity of water available for all of the many 
        uses of the land;
            (4) private grazing land constitutes the most extensive 
        wildlife habitat in the United States;
            (5) private grazing land can provide opportunities for 
        improved nutrient management from land application of animal 
        manures and other by-product nutrient resources;
            (6) owners and managers of private grazing land need to 
        continue to recognize conservation problems when the problems 
        arise and receive sound technical assistance to improve or 
        conserve grazing land resources to meet ecological and economic 
        demands;
            (7) new science and technology must continually be made 
        available in a practical manner so owners and managers of

[[Page 110 STAT. 1018]]

        private grazing land may make informed decisions concerning 
        vital grazing land resources;
            (8) agencies of the Department with private grazing land 
        responsibilities are the agencies that have the expertise and 
        experience to provide technical assistance, education, and 
        research to owners and managers of private grazing land for the 
        long-term productivity and ecological health of grazing land;
            (9) although competing demands on private grazing land 
        resources are greater than ever before, assistance to private 
        owners and managers of private grazing land is currently limited 
        and does not meet the demand and basic need for adequately 
        sustaining or enhancing the private grazing land resources; and
            (10) private grazing land can be enhanced to provide many 
        benefits to all citizens of the United States through voluntary 
        cooperation among owners and managers of the land, local 
        conservation districts, and the agencies of the Department 
        responsible for providing assistance to owners and managers of 
        land and to conservation districts.

    (b) Purpose.--It is the purpose of this section to authorize the 
Secretary to provide a coordinated technical, educational, and related 
assistance program to conserve and enhance private grazing land 
resources and provide related benefits to all citizens of the United 
States by--
            (1) establishing a coordinated and cooperative Federal, 
        State, and local grazing conservation program for management of 
        private grazing land;
            (2) strengthening technical, educational, and related 
        assistance programs that provide assistance to owners and 
        managers of private grazing land;
            (3) conserving and improving wildlife habitat on private 
        grazing land;
            (4) conserving and improving fish habitat and aquatic 
        systems through grazing land conservation treatment;
            (5) protecting and improving water quality;
            (6) improving the dependability and consistency of water 
        supplies;
            (7) identifying and managing weed, noxious weed, and brush 
        encroachment problems on private grazing land; and
            (8) integrating conservation planning and management 
        decisions by owners and managers of private grazing land, on a 
        voluntary basis.

    (c) Definitions.--In this section:
            (1) Department.--The term ``Department'' means the 
        Department of Agriculture.
            (2) Private grazing land.--The term ``private grazing land'' 
        means private, State-owned, tribally-owned, and any other non-
        federally owned rangeland, pastureland, grazed forest land, and 
        hay land.
            (3) Secretary.--The term ``Secretary'' means the Secretary 
        of Agriculture.

    (d) Private Grazing Land Conservation Assistance.--
            (1) Assistance to grazing landowners and others.--Subject to 
        the availability of appropriations for this section, the 
        Secretary shall establish a voluntary program to provide 
        technical, educational, and related assistance to owners and 
        managers of private grazing land and public agencies, through

[[Page 110 STAT. 1019]]

        local conservation districts, to enable the landowners, 
        managers, and public agencies to voluntarily carry out 
        activities that are consistent with this section, including--
                    (A) maintaining and improving private grazing land 
                and the multiple values and uses that depend on private 
                grazing land;
                    (B) implementing grazing land management 
                technologies;
                    (C) managing resources on private grazing land, 
                including--
                          (i) planning, managing, and treating private 
                      grazing land resources;
                          (ii) ensuring the long-term sustainability of 
                      private grazing land resources;
                          (iii) harvesting, processing, and marketing 
                      private grazing land resources; and
                          (iv) identifying and managing weed, noxious 
                      weed, and brush encroachment problems;
                    (D) protecting and improving the quality and 
                quantity of water yields from private grazing land;
                    (E) maintaining and improving wildlife and fish 
                habitat on private grazing land;
                    (F) enhancing recreational opportunities on private 
                grazing land;
                    (G) maintaining and improving the aesthetic 
                character of private grazing lands; and
                    (H) identifying the opportunities and encouraging 
                the diversification of private grazing land enterprises.
            (2) Program elements.--
                    (A) Funding.--If funding is provided to carry out 
                this section, it shall be provided through a specific 
                line-item in the annual appropriations for the Natural 
                Resources Conservation Service.
                    (B) Technical assistance and education.--Personnel 
                of the Department trained in pasture and range 
                management shall be made available under the program to 
                deliver and coordinate technical assistance and 
                education to owners and managers of private grazing 
                land, at the request of the owners and managers.

    (e) Grazing Technical Assistance Self-Help.--
            (1) Findings.--Congress finds that--
                    (A) there is a severe lack of technical assistance 
                for farmers and ranchers who graze livestock;
                    (B) Federal budgetary constraints preclude any 
                significant expansion, and may force a reduction of, 
                current levels of technical support; and
                    (C) farmers and ranchers have a history of 
                cooperatively working together to address common needs 
                in the promotion of their products and in the drainage 
                of wet areas through drainage districts.
            (2) Establishment of grazing demonstration.--In accordance 
        with paragraph (3), the Secretary may establish 2 grazing 
        management demonstration districts at the recommendation of the 
        grazing lands conservation initiative steering committee.
            (3) Procedure.--

[[Page 110 STAT. 1020]]

                    (A) Proposal.--Within a reasonable time after the 
                submission of a request of an organization of farmers or 
                ranchers engaged in grazing, the Secretary shall propose 
                that a grazing management district be established.
                    (B) Funding.--The terms and conditions of the 
                funding and operation of the grazing management district 
                shall be proposed by the producers.
                    (C) Approval.--The Secretary shall approve the 
                proposal if the Secretary determines that the proposal--
                          (i) is reasonable;
                          (ii) will promote sound grazing practices; and
                          (iii) contains provisions similar to the 
                      provisions contained in the beef promotion and 
                      research order issued under section 4 of the Beef 
                      Research and Information Act (7 U.S.C. 2903) in 
                      effect on the date of enactment of this Act.
                    (D) Area included.--The area proposed to be included 
                in a grazing management district shall be determined by 
                the Secretary on the basis of a petition by farmers or 
                ranchers.
                    (E) Authorization.--The Secretary may use authority 
                under the Agricultural Adjustment Act (7 U.S.C. 601 et 
                seq.), reenacted with amendments by the Agricultural 
                Marketing Agreement Act of 1937, to operate, on a 
                demonstration basis, a grazing management district.
                    (F) Activities.--The activities of a grazing 
                management district shall be scientifically sound 
                activities, as determined by the Secretary in 
                consultation with a technical advisory committee 
                composed of ranchers, farmers, and technical experts.

    (f) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section--
            (1) $20,000,000 for fiscal year 1996;
            (2) $40,000,000 for fiscal year 1997; and
            (3) $60,000,000 for fiscal year 1998 and each subsequent 
        fiscal year.

SEC. 387. <<NOTE: Establishment. 16 USC 3836a.>> WILDLIFE HABITAT 
            INCENTIVES PROGRAM.

    (a) In General.--The Secretary of Agriculture, in consultation with 
the State technical committees established under section 1261 of the 
Food Security Act of 1985 (16 U.S.C. 3861), shall establish a program 
under the Natural Resources Conservation Service to be known as the 
``Wildlife Habitat Incentive Program''.
    (b) Cost-Share Payments.--Under the program, the Secretary shall 
make cost-share payments to landowners to develop upland wildlife, 
wetland wildlife, threatened and endangered species, fish, and other 
types of wildlife habitat approved by the Secretary.
    (c) Funding.--To carry out this section, a total of $50,000,000 
shall be made available for fiscal years 1996 through 2002 from funds 
made available to carry out subchapter B of chapter 1 of subtitle D of 
title XII of the Food Security Act of 1985 (16 U.S.C. 3831 et seq.).

SEC. 388. <<NOTE: Establishment. 16 USC 3830 note.>> FARMLAND PROTECTION 
            PROGRAM.

    (a) In General.--The Secretary of Agriculture shall establish and 
carry out a farmland protection program under which the Secretary shall 
purchase conservation easements or other interests in not less than 
170,000, nor more than 340,000, acres of land

[[Page 110 STAT. 1021]]

with prime, unique, or other productive soil that is subject to a 
pending offer from a State or local government for the purpose of 
protecting topsoil by limiting nonagricultural uses of the land.
    (b) Conservation Plan.--Any highly erodible cropland for which a 
conservation easement or other interest is purchased under this section 
shall be subject to the requirements of a conservation plan that 
requires, at the option of the Secretary, the conversion of the cropland 
to less intensive uses.
    (c) Funding.--The Secretary shall use not more than $35,000,000 of 
the funds of the Commodity Credit Corporation to carry out this section.

SEC. 389. <<NOTE: National Forest Service.>> INTERIM MORATORIUM ON 
            BYPASS FLOWS.

    (a) Moratorium.--There shall be an 18-month <<NOTE: Water. 16 USC 
526 note.>> moratorium on any Forest Service decision to require bypass 
flows or any other relinquishment of the unimpaired use of a decreed 
water right as a condition of renewal or reissuance of a land use 
authorization permit.

    (b) Limitations.--Subsection (a) shall not affect--
            (1) obligations or authority of the Secretary of Agriculture 
        to protect public health and safety; and
            (2) obligations or authority under the Endangered Species 
        Act of 1973 (16 U.S.C. 1531 et seq.), or applicable State law.

    (c) Rules of Construction.--
            (1) Existing non-federal water rights.--Nothing in this 
        section prevents or inhibits the exercise of the use and 
        operation of existing non-Federal water rights on or above the 
        National Forest land that require land use authorization permits 
        from the Forest Service to access water supply facilities.
            (2) Renewal or reissuance of expiring land use authorization 
        for decreed water rights.--Nothing in this section prevents or 
        inhibits the renewal or reissuance of expiring land use 
        authorizations for decreed water rights. The Forest Service may 
        extend, as needed, any expiring land use authorization for such 
        time as is necessary to incorporate the results of the study 
        authorized by subsection (d).

    (d) Study of Water Rights Across Federal Lands.--
            (1) Establishment.--Not later than 60 days after the date of 
        enactment of this Act, there shall be established a Water Rights 
        Task Force to study the subjects described in paragraph (3).
            (2) Membership.--The Task Force shall be composed of 7 
        members appointed as follows:
                    (A) 1 member shall be appointed by the Secretary of 
                Agriculture.
                    (B) 2 members shall be appointed by the Speaker of 
                the House of Representatives and 1 member shall be 
                appointed by the Minority Leader of the House of 
                Representatives.
                    (C) 2 members shall be appointed by the Majority 
                Leader of the Senate and 1 member shall be appointed by 
                the Minority Leader of the Senate.
            (3) Subjects to be studied.--The Task Force shall study and 
        make recommendations on--
                    (A) whether Federal water rights should be acquired 
                for environmental protection on National Forest land;

[[Page 110 STAT. 1022]]

                    (B) measures necessary to protect the free exercise 
                of non-Federal water rights requiring easements and 
                permits from the Forest Service;
                    (C) the protection of minimum instream flows for 
                environmental and watershed management purposes on 
                National Forest land through purchases or exchanges from 
                willing sellers in accordance with State law;
                    (D) the effects of any of the recommendations made 
                under this paragraph on existing State laws, 
                regulations, and customs of water usage; and
                    (E) measures that would be useful in avoiding or 
                resolving conflicts between the Forest Service's 
                responsibilities for natural resource and environmental 
                protection, the public interest, and the property rights 
                and interests of water holders with special use permits 
                for water facilities, including the study of the Federal 
                acquisition of water rights, dispute resolution, 
                mitigation, and compensation.
            (4) Final report.--As soon as practicable, but not later 
        than 1 year, after the date of enactment of this Act, the Task 
        Force shall provide the final report of the Task Force to--
                    (A) the Secretary of Agriculture;
                    (B) the Speaker of the House of Representatives;
                    (C) the President pro tempore of the Senate;
                    (D) the Chairman of the Committee on Agriculture of 
                the House of Representatives;
                    (E) the Chairman of the Committee on Agriculture, 
                Nutrition, and Forestry of the Senate;
                    (F) the Chairman of the Committee on Resources of 
                the House of Representatives; and
                    (G) the Chairman of the Committee on Energy and 
                Natural Resources of the Senate.
            (5) Authorization of funds.--The Secretary of Agriculture 
        shall use funds made available for salaries and administrative 
        expenses of the Department of Agriculture to carry out this 
        subsection.

SEC. 390. <<NOTE: Florida.>> EVERGLADES ECOSYSTEM RESTORATION.

    (a) In General.--On July 1, 1996, out of any funds in the Treasury 
not otherwise appropriated, the Secretary of the Treasury shall provide 
$200,000,000 to the Secretary of the Interior to carry out this section.
    (b) Entitlement.--The Secretary of the Interior (referred to in this 
section as the ``Secretary'')--
            (1) shall be entitled to receive the funds made available 
        under subsection (a);
            (2) shall accept the funds; and
            (3) shall use the funds to--
                    (A) conduct restoration activities in the Everglades 
                ecosystem in South Florida, which shall include the 
                acquisition of real property and interests in real 
                property located within the Everglades ecosystem; and
                    (B) fund resource protection and resource 
                maintenance activities in the Everglades ecosystem.

    (c) Savings Provision.--Nothing in this subsection precludes the 
Secretary from transferring funds to the Army Corps of Engineers, the 
State of Florida, or the South Florida Water Management District to 
carry out subsection (b)(3).

[[Page 110 STAT. 1023]]

    (d) Deadline.--The Secretary shall use the funds made available 
under subsection (a) for restoration activities referred to in 
subsection (b)(3) not later than December 31, 1999.
    (e) Report to Congress.--For each of calendar years 1996 through 
1999, the Secretary shall submit an annual report to Congress describing 
all activities carried out under subsection (b)(3).
    (f) Separate and Additional Everglades Restoration Account.--
            (1) Establishment.--There is established in the Treasury a 
        special account (to be known as the ``Everglades Restoration 
        Account''), which shall consist of such funds as may be 
        deposited in the account under paragraph (2). The account shall 
        be separate, and in addition to, funds deposited in the Treasury 
        under subsection (a).
            (2) Source of funds for account.--
                    (A) Proceeds from surplus property.--
                          (i) In general.--Subject to subparagraph (B), 
                      the Administrator shall deposit in the special 
                      account all funds received by the Administrator, 
                      on or after the date of enactment of this Act, 
                      from the disposal pursuant to the Federal Property 
                      and Administrative Services Act of 1949 (40 U.S.C. 
                      471 et seq.) of surplus real property located in 
                      the State of Florida.
                          (ii) Availability and disposition of federal 
                      land.--
                                    (I) Identification.--Any Federal 
                                real property located in the State of 
                                Florida (excluding lands under the 
                                administrative jurisdiction of the 
                                Secretary that are set aside for 
                                conservation purposes) shall be 
                                identified for disposal or exchange 
                                under this subsection and shall be 
                                presumed available for purposes of this 
                                subsection unless the head of the agency 
                                controlling the property determines that 
                                there is a compelling program need for 
                                any property identified by the 
                                Secretary.
                                    (II) Availability.--Property 
                                identified by the Secretary for which 
                                there is no demonstrated compelling 
                                program need shall, not later than 90 
                                days after a request by the Secretary, 
                                be reported to the Administrator and 
                                shall be made available to the 
                                Administrator who shall consider the 
                                property to be surplus property for 
                                purposes of the Federal Property and 
                                Administrative Services Act of 1949 (40 
                                U.S.C. 471 et seq.).
                                    (III) Prioritization of 
                                disposition.--The Administrator may 
                                prioritize the disposition of property 
                                made available under this subparagraph 
                                to permit the property to be sold as 
                                quickly as practicable in a manner that 
                                is consistent with the best interests of 
                                the Federal Government.
                    (B) Limit on total amount of deposits.--The total 
                amount of funds deposited in the special account under 
                subparagraph (A) shall not exceed $100,000,000.
                    (C) Effect on closure of military installations.--
                Nothing in this section alters the disposition of any 
                proceeds arising from the disposal of real property 
                pursuant to a base closure law.

[[Page 110 STAT. 1024]]

            (3) Use of special account.--Funds in the special account 
        shall be available to the Secretary until expended under this 
        paragraph. The Secretary shall use funds in the special account 
        to assist in the restoration of the Everglades ecosystem in 
        South Florida through--
                    (A) subject to paragraph (4), the acquisition of 
                real property and interests in real property located 
                within the Everglades ecosystem; and
                    (B) the funding of resource protection and resource 
                maintenance activities in the Everglades ecosystem.
            (4) State contribution.--The Secretary may not expend any 
        funds from the special account to acquire a parcel of real 
        property, or an interest in a parcel of real property, under 
        paragraph (3)(A) unless the Secretary obtains, or has previously 
        obtained, a contribution from the State of Florida in an amount 
        equal to not less than 50 percent of the appraised value of the 
        parcel or interest to be acquired, as determined by the 
        Secretary.
            (5) Definitions.--In this subsection:
                    (A) Administrator.--The term ``Administrator'' means 
                the Administrator of General Services.
                    (B) Base closure law.--The term ``base closure law'' 
                means each of the following:
                          (i) The Defense Base Closure and Realignment 
                      Act of 1990 (part A of title XXIX of Public Law 
                      101-510; 10 U.S.C. 2687 note).
                          (ii) Title II of the Defense Authorization 
                      Amendments and Base Closure and Realignment Act 
                      (Public Law 100-526; 10 U.S.C. 2687 note).
                          (iii) Section 2687 of title 10, United States 
                      Code.
                          (iv) Any other similar law enacted after the 
                      date of enactment of this Act.
                    (C) Everglades ecosystem.--The term ``Everglades 
                ecosystem'' means the Florida Everglades Restoration 
                area that extends from the Kissimmee River basin to 
                Florida Bay.
                    (D) Excess property.--The term ``excess property'' 
                has the meaning provided in section 3 of the Federal 
                Property and Administrative Services Act of 1949 (40 
                U.S.C. 472).
                    (E) Executive agency.--The term ``executive agency'' 
                has the meaning provided in section 3 of the Federal 
                Property and Administrative Services Act of 1949 (40 
                U.S.C. 472).
                    (F) Special account.--The term ``special account'' 
                means the Everglades Restoration Account established 
                under paragraph (1).
                    (G) Surplus property.--The term ``surplus property'' 
                has the meaning provided in section 3 of the Federal 
                Property and Administrative Services Act of 1949 (40 
                U.S.C. 472).

    (g) Report To Determine the Feasibility of Additional Land 
Acquisition and Restoration Activities.--
            (1) In general.--The Secretary shall conduct an 
        investigation to determine what, if any, unreserved and 
        unappropriated Federal lands (or mineral interests in any such 
        lands) under the administrative jurisdiction of the Secretary 
        are suitable

[[Page 110 STAT. 1025]]

        for disposal or exchange for the purpose of conducting 
        restoration activities in the Everglades region.
            (2) Conservation lands.--No lands under the administrative 
        jurisdiction of the Secretary that are set aside for 
        conservation purposes shall be identified for disposal or 
        exchange under this subsection.
            (3) Florida.--In carrying out this subsection, the Secretary 
        shall, to the maximum extent practicable, determine which lands 
        and mineral interests located within the State of Florida are 
        suitable for disposal or exchange before making the 
        determination for eligible lands or interests in other States.
            (4) Public access.--In carrying out this subsection, the 
        Secretary shall consider that in disposing of lands, the 
        Secretary shall retain such interest in the lands as may be 
        necessary to ensure that the general public is not precluded 
        from reasonable access to the lands for purposes of fishing, 
        hunting, or other recreational uses.
            (5) Report.--Not later than 1 year after the date of 
        enactment of this Act, the Secretary shall submit a report to 
        the Committee on Resources of the House of Representatives and 
        the Committee on Energy and Natural Resources of the Senate 
        describing the results of the investigation conducted under this 
        subsection. The report shall describe the specific parcels 
        identified under this subsection, establish the priorities for 
        disposal or exchange among the parcels, and estimate the values 
        of the parcels.

SEC. 391. <<NOTE: 7 USC 5405.>> AGRICULTURAL AIR QUALITY RESEARCH 
            OVERSIGHT.

    (a) Findings.--Congress finds that--
            (1) various studies have alleged that agriculture is a 
        source of PM-10 emissions;
            (2) many of these studies have often been based on erroneous 
        data;
            (3) Federal research activities are currently being 
        conducted by the Department of Agriculture to determine the true 
        extent to which agricultural activities contribute to air 
        pollution and to determine cost-effective ways in which the 
        agricultural industry can reduce any pollution that exists; and
            (4) any Federal policy recommendations that may be issued by 
        any Federal agency to address air pollution problems related to 
        agriculture or any other industrial activity should be based on 
        sound scientific findings that are subject to adequate peer 
        review and should take into account economic feasibility.

    (b) Purpose.--The purpose of this section is to encourage the 
Secretary of Agriculture to continue to strengthen vital research 
efforts related to agricultural air quality.
    (c) Oversight Coordination.--
            (1) Intergovernmental cooperation.--The Secretary shall, to 
        the maximum extent practicable with respect to the Department of 
        Agriculture and other Federal departments and agencies, ensure 
        intergovernmental cooperation in research activities related to 
        agricultural air quality and avoid duplication of the 
        activities.
            (2) Correct data.--The Secretary shall, to the maximum 
        extent practicable, ensure that the results of any research 
        related to agricultural air quality conducted by Federal 
        agencies

[[Page 110 STAT. 1026]]

        not report erroneous data with respect to agricultural air 
        quality.

    (d) Task Force.--
            (1) Establishment.--The Chief of the National Resources 
        Conservation Service shall establish a task force to address 
        agricultural air quality issues.
            (2) Composition.--The task force shall be comprised of 
        employees of the Department of Agriculture, industry 
        representatives, and other experts in the fields of agriculture 
        and air quality.
            (3) Duties.--The task force shall advise the Secretary with 
        respect to the role of the Secretary for providing oversight and 
        coordination related to agricultural air quality.

                     TITLE IV--NUTRITION ASSISTANCE

SEC. 401. FOOD STAMP PROGRAM.

    (a) Disqualification of a Store or Concern.--Section 12(b)(3)(B) of 
the Food Stamp Act of 1977 (7 U.S.C. 2021(b)(3)(B)) is amended--
            (1) by striking the second parenthetical; and
            (2) by striking ``; or'' and inserting the following: ``, 
        including evidence that--
                          ``(i) the ownership of the store or food 
                      concern was not aware of, did not approve of, did 
                      not benefit from, and was not involved in the 
                      conduct of the violation; and
                          ``(ii)(I) the management of the store or food 
                      concern was not aware of, did not approve of, did 
                      not benefit from, and was not involved in the 
                      conduct of the violation; or
                          ``(II) the management was aware of, approved 
                      of, benefited from, or was involved in the conduct 
                      of no more than 1 previous violation by the store 
                      or food concern; or''.

    (b) Employment and Training.--Section 16(h)(1) of the Food Stamp Act 
of 1977 (7 U.S.C. 2025(h)(1)) is amended by striking ``1995'' each place 
it appears and inserting ``2002''.
    (c) Authorization of Pilot Projects.--The last sentence of section 
17(b)(1)(A) of the Food Stamp Act of 1977 (7 U.S.C. 2026(b)(1)(A)) is 
amended by striking ``1995'' and inserting ``2002''.
    (d) Outreach Demonstration Projects.--The first sentence of section 
17(j)(1)(A) of the Food Stamp Act of 1977 (7 U.S.C. 2026(j)(1)(A)) is 
amended by striking ``1995'' and inserting ``2002''.
    (e) Authorization for Appropriations.--The first sentence of section 
18(a)(1) of the Food Stamp Act of 1977 (7 U.S.C. 2027(a)(1)) is amended 
by striking ``1995'' and inserting ``1997''.
    (f) Reauthorization of Puerto Rico Nutrition Assistance Program.--
The first sentence of section 19(a)(1)(A) of the Food Stamp Act of 1977 
(7 U.S.C. 2028(a)(1)(A)) is amended by striking ``$974,000,000'' and all 
that follows through ``fiscal year 1995'' and inserting ``$1,143,000,000 
for fiscal year 1996, $1,174,000,000 for fiscal year 1997, 
$1,204,000,000 for fiscal year 1998, $1,236,000,000 for fiscal year 
1999, $1,268,000,000 for fiscal year 2000, $1,301,000,000 for fiscal 
year 2001, and $1,335,000,000 for fiscal year 2002''.

[[Page 110 STAT. 1027]]

    (g) American Samoa.--The Food Stamp Act of 1977 (7 U.S.C. 2011 et 
seq.) is amended by adding at the end the following:

``SEC. 24. <<NOTE: 7 USC 2033. Effective date.>> TERRITORY OF AMERICAN 
            SAMOA.

    ``Effective October 1, 1995, from amounts made available to carry 
out this Act, the Secretary shall pay to the Territory of American Samoa 
not more than $5,300,000 for each of fiscal years 1996 through 2002 to 
finance 100 percent of the expenditures for the fiscal year for a 
nutrition assistance program extended under section 601(c) of Public Law 
96-597 (48 U.S.C. 1469d(c)).''.
    (h) Assistance for Community Food Projects.--The Food Stamp Act of 
1977 (7 U.S.C. 2011 et seq.) (as amended by subsection (g)) is amended 
by adding at the end the following:

``SEC. 25. <<NOTE: 7 USC 2034.>> ASSISTANCE FOR COMMUNITY FOOD PROJECTS.

    ``(a) Definition of Community Food Projects.--In this section, the 
term `community food project' means a community-based project that 
requires a 1-time infusion of Federal assistance to become self-
sustaining and that is designed to--
            ``(1) meet the food needs of low-income people;
            ``(2) increase the self-reliance of communities in providing 
        for their own food needs; and
            ``(3) promote comprehensive responses to local food, farm, 
        and nutrition issues.

    ``(b) Authority To Provide Assistance.--
            ``(1) In general.--From amounts made available to carry out 
        this Act, the Secretary may make grants to assist eligible 
        private nonprofit entities to establish and carry out community 
        food projects.
            ``(2) Limitation on grants.--The total amount of funds 
        provided as grants under this section may not exceed--
                    ``(A) $1,000,000 for fiscal year 1996; and
                    ``(B) $2,500,000 for each of fiscal years 1997 
                through 2002.

    ``(c) Eligible Entities.--To be eligible for a grant under 
subsection (b), a private nonprofit entity must--
            ``(1) have experience in the area of--
                    ``(A) community food work, particularly concerning 
                small and medium-sized farms, including the provision of 
                food to people in low-income communities and the 
                development of new markets in low-income communities for 
                agricultural producers; or
                    ``(B) job training and business development 
                activities for food-related activities in low-income 
                communities;
            ``(2) demonstrate competency to implement a project, provide 
        fiscal accountability, collect data, and prepare reports and 
        other necessary documentation; and
            ``(3) demonstrate a willingness to share information with 
        researchers, practitioners, and other interested parties.

    ``(d) Preference for Certain Projects.--In selecting community food 
projects to receive assistance under subsection (b), the Secretary shall 
give a preference to projects designed to--
            ``(1) develop linkages between 2 or more sectors of the food 
        system;
            ``(2) support the development of entrepreneurial projects;
            ``(3) develop innovative linkages between the for-profit and 
        nonprofit food sectors; or

[[Page 110 STAT. 1028]]

            ``(4) encourage long-term planning activities and multi-
        system, interagency approaches.

    ``(e) Matching Funds Requirements.--
            ``(1) Requirements.--The Federal share of the cost of 
        establishing or carrying out a community food project that 
        receives assistance under subsection (b) may not exceed 50 
        percent of the cost of the project during the term of the grant.
            ``(2) Calculation.--In providing for the non-Federal share 
        of the cost of carrying out a community food project, the entity 
        receiving the grant shall provide for the share through a 
        payment in cash or in kind, fairly evaluated, including 
        facilities, equipment, or services.
            ``(3) Sources.--An entity may provide for the non-Federal 
        share through State government, local government, or private 
        sources.

    ``(f) Term of Grant.--
            ``(1) Single grant.--A community food project may be 
        supported by only a single grant under subsection (b).
            ``(2) Term.--The term of a grant under subsection (b) may 
        not exceed 3 years.

    ``(g) Technical Assistance and Related Information.--
            ``(1) Technical assistance.--In carrying out this section, 
        the Secretary may provide technical assistance regarding 
        community food projects, processes, and development to an entity 
        seeking the assistance.
            ``(2) Sharing Information.--
                    ``(A) In general.--The Secretary may provide for the 
                sharing of information concerning community food 
                projects and issues among and between government, 
                private for-profit and nonprofit groups, and the public 
                through publications, conferences, and other appropriate 
                forums.
                    ``(B) Other interested parties.--The Secretary may 
                share information concerning community food projects 
                with researchers, practitioners, and other interested 
                parties.

    ``(h) Evaluation.--
            ``(1) In general.--The Secretary shall provide for the 
        evaluation of the success of community food projects supported 
        using funds under this section.
            ``(2) Report.--Not later than January 30, 2002, the 
        Secretary shall submit a report to Congress regarding the 
        results of the evaluation.''.

SEC. 402. COMMODITY DISTRIBUTION PROGRAM; COMMODITY SUPPLEMENTAL FOOD 
            PROGRAM.

    (a) Reauthorization.--The first sentence of section 4(a) of the 
Agriculture and Consumer Protection Act of 1973 (Public Law 93-86; 7 
U.S.C. 612c note) is amended by striking ``1995'' and inserting 
``2002''.
    (b) Funding.--Section 5 of the Agriculture and Consumer Protection 
Act of 1973 (Public Law 93-86; 7 U.S.C. 612c note) is amended--
            (1) in subsection (a)(2), by striking ``1995'' and inserting 
        ``2002'';
            (2) in subsection (d)(2), by striking ``1995'' and inserting 
        ``2002''; and
            (3) by adding at the end the following:

[[Page 110 STAT. 1029]]

    ``(l) Carried-Over Funds.--Not more than 20 percent of any commodity 
supplemental food program food funds carried over under this section 
shall be available for administrative expenses of the program.''.

SEC. 403. EMERGENCY FOOD ASSISTANCE PROGRAM.

    (a) Reauthorization.--The first sentence of section 204(a)(1) of the 
Emergency Food Assistance Act of 1983 (Public Law 98-8; 7 U.S.C. 612c 
note) is amended by striking ``1995'' and inserting ``2002''.
    (b) Program Termination.--Section 212 of the Emergency Food 
Assistance Act of 1983 (Public Law 98-8; 7 U.S.C. 612c note) is amended 
by striking ``1995'' and inserting ``2002''.
    (c) Required Purchases of Commodities.--Section 214 of the Emergency 
Food Assistance Act of 1983 (Public Law 98-8; 7 U.S.C. 612c note) is 
amended--
            (1) in the first sentence of subsection (a), by striking 
        ``1995'' and inserting ``2002''; and
            (2) in subsection (e), by striking ``1995'' each place it 
        appears and inserting ``2002''.

SEC. 404. SOUP KITCHEN AND FOOD BANK PROGRAM.

    Section 110 of the Hunger Prevention Act of 1988 (Public Law 100-
435; 7 U.S.C. 612c note) is amended--
            (1) in the first sentence of subsection (a), by striking 
        ``1995'' and inserting ``2002''; and
            (2) in subsection (c)(2)--
                    (A) in the paragraph heading, by striking ``1992 
                through 1995'' and inserting ``Subsequent''; and
                    (B) by striking ``1995'' each place it appears and 
                inserting ``2002''.

SEC. 405. NATIONAL COMMODITY PROCESSING.

    The first sentence of section 1114(a)(2)(A) of the Agriculture and 
Food Act of 1981 (7 U.S.C. 1431e(2)(A)) is amended by striking ``1995'' 
and inserting ``2002''.

                     TITLE V--AGRICULTURAL PROMOTION

             Subtitle A--Commodity Promotion and Evaluation

SEC. 501. <<NOTE: 7 USC 7401.>> COMMODITY PROMOTION AND EVALUATION.

    (a) Commodity Promotion Law Defined.--In this section, the term 
``commodity promotion law'' means a Federal law that provides for the 
establishment and operation of a promotion program regarding an 
agricultural commodity that includes a combination of promotion, 
research, industry information, or consumer information activities, is 
funded by mandatory assessments on producers or processors, and is 
designed to maintain or expand markets and uses for the commodity (as 
determined by the Secretary). The term includes--
            (1) the marketing promotion provisions under section 
        8c(6)(I) of the Agricultural Adjustment Act (7 U.S.C. 
        608c(6)(I)), reenacted with amendments by the Agricultural 
        Marketing Agreement Act of 1937;

[[Page 110 STAT. 1030]]

            (2) Public Law 89-502 (7 U.S.C. 2101 et seq.);
            (3) title III of Public Law 91-670 (7 U.S.C. 2611 et seq.);
            (4) Public Law 93-428 (7 U.S.C. 2701 et seq.);
            (5) Public Law 94-294 (7 U.S.C. 2901 et seq.);
            (6) subtitle B of title I of Public Law 98-180 (7 U.S.C. 
        4501 et seq.);
            (7) Public Law 98-590 (7 U.S.C. 4601 et seq.);
            (8) subtitle B of title XVI of Public Law 99-198 (7 U.S.C. 
        4801 et seq.);
            (9) subtitle C of title XVI of Public Law 99-198 (7 U.S.C. 
        4901 et seq.);
            (10) subtitle B of title XIX of Public Law 101-624 (7 U.S.C. 
        6101 et seq.);
            (11) subtitle E of title XIX of Public Law 101-624 (7 U.S.C. 
        6301 et seq.);
            (12) subtitle H of title XIX of Public Law 101-624 (7 U.S.C. 
        6401 et seq.);
            (13) Public Law 103-190 (7 U.S.C. 6801 et seq.);
            (14) Public Law 103-407 (7 U.S.C. 7101 et seq.);
            (15) subtitle B;
            (16) subtitle C;
            (17) subtitle D; or
            (18) subtitle E.

    (b) Findings.--Congress finds the following:
            (1) It is in the national public interest and vital to the 
        welfare of the agricultural economy of the United States to 
        maintain and expand existing markets and develop new markets and 
        uses for agricultural commodities through industry-funded, 
        Government-supervised, generic commodity promotion programs 
        established under commodity promotion laws.
            (2) These generic commodity promotion programs, funded by 
        the agricultural producers or processors who most directly reap 
        the benefits of the programs and supervised by the Secretary of 
        Agriculture, provide a unique opportunity for producers and 
        processors to inform consumers about their products.
            (3) The central congressional purpose underlying each 
        commodity promotion law has always been to maintain and expand 
        markets for the agricultural commodity covered by the law, 
        rather than to maintain or expand the share of those markets 
        held by any individual producer or processor.
            (4) The commodity promotion laws were neither designed nor 
        intended to prohibit or restrict, and the promotion programs 
        established and funded pursuant to these laws do not prohibit or 
        restrict, individual advertising or promotion of the covered 
        commodities by any producer, processor, or group of producers or 
        processors.
            (5) It has never been the intent of Congress for the generic 
        commodity promotion programs established and funded by the 
        commodity promotion laws to replace the individual advertising 
        and promotion efforts of producers or processors.
            (6) An individual producer's or processor's own advertising 
        initiatives are typically designed to increase the share of the 
        market held by that producer or processor rather than to 
        increase or expand the overall size of the market.
            (7) In contrast, a generic commodity promotion program is 
        intended and designed to maintain or increase the overall demand 
        for the agricultural commodity covered by the program

[[Page 110 STAT. 1031]]

        and increase the size of the market for that commodity, often by 
        utilizing promotion methods and techniques that individual 
        producers and processors typically are unable, or have no 
        incentive, to employ.
            (8) The commodity promotion laws establish promotion 
        programs that operate as ``self-help'' mechanisms for producers 
        and processors to fund generic promotions for covered 
        commodities which, under the required supervision and oversight 
        of the Secretary of Agriculture--
                    (A) further specific national governmental goals, as 
                established by Congress; and
                    (B) produce nonideological and commercial 
                communication the purpose of which is to further the 
                governmental policy and objective of maintaining and 
                expanding the markets for the covered commodities.
            (9) While some commodity promotion laws grant a producer or 
        processor the option of crediting individual advertising 
        conducted by the producer or processor for all or a portion of 
        the producer's or processor's marketing promotion assessments, 
        all promotion programs established under the commodity promotion 
        laws, both those programs that permit credit for individual 
        advertising and those programs that do not contain such 
        provisions, are very narrowly tailored to fulfill the 
        congressional purposes of the commodity promotion laws without 
        impairing or infringing the legal or constitutional rights of 
        any individual producer or processor.
            (10) These generic commodity promotion programs are of 
        particular benefit to small producers who often lack the 
        resources or market power to advertise on their own and who are 
        otherwise often unable to benefit from the economies of scale 
        available in promotion and advertising.
            (11) Periodic independent evaluation of the effectiveness of 
        these generic commodity promotion programs will assist Congress 
        and the Secretary of Agriculture in ensuring that the objectives 
        of the programs are met.

    (c) Independent Evaluation of Promotion Program Effectiveness.--
Except as otherwise provided by law, each commodity board established 
under the supervision and oversight of the Secretary of Agriculture 
pursuant to a commodity promotion law shall, not less often than every 5 
years, authorize and fund, from funds otherwise available to the board, 
an independent evaluation of the effectiveness of the generic commodity 
promotion programs and other programs conducted by the board pursuant to 
a commodity promotion law. <<NOTE: Public information.>> The board shall 
submit to the Secretary, and make available to the public, the results 
of each periodic independent evaluation conducted under this subsection.

    (d) Administrative Costs.--The Secretary shall annually provide to 
the Committee on Agriculture of the House of Representatives and the 
Committee on Agriculture, Nutrition, and Forestry of the Senate 
information on administrative expenses on programs established under 
commodity promotion laws.

[[Page 110 STAT. 1032]]

Subtitle B <<NOTE: Commodity Promotion, Research, and Information Act of 
 1996.>> --Issuance of Orders for Promotion, Research, and Information 
Activities Regarding Agricultural Commodities

SEC. 511. <<NOTE: 7 USC 7401 note.>> SHORT TITLE.

    This subtitle may be cited as the ``Commodity Promotion, Research, 
and Information Act of 1996''.

SEC. 512. <<NOTE: 7 USC 7411.>> FINDINGS AND PURPOSE.

    (a) Findings.--Congress finds the following:
            (1) The production of agricultural commodities plays a 
        significant role in the economy of the United States. Thousands 
        of producers in the United States are involved in the production 
        of agricultural commodities, and such commodities are consumed 
        by millions of people throughout the United States and foreign 
        countries.
            (2) Agricultural commodities must be of high quality, 
        readily available, handled properly, and marketed efficiently to 
        ensure that consumers have an adequate supply.
            (3) The maintenance and expansion of existing markets and 
        the development of new markets for agricultural commodities 
        through generic commodity promotion, research, and information 
        programs are vital to the welfare of persons engaged in the 
        production, marketing, and consumption of such commodities, as 
        well as to the general economy of the United States.
            (4) Generic promotion, research, and information activities 
        for agricultural commodities play a unique role in advancing the 
        demand for such commodities, since such activities increase the 
        total market for a product to the benefit of consumers and all 
        producers. These generic activities complement branded 
        advertising initiatives, which are aimed at increasing the 
        market share of individual competitors, and are of particular 
        benefit to small producers who lack the resources or market 
        power to advertise on their own. These generic activities do not 
        impede the branded advertising efforts of individual firms, but 
        instead increase general market demand for an agricultural 
        commodity using methods that individual companies do not have 
        the incentive to employ.
            (5) Generic promotion, research, and information activities 
        for agricultural commodities, paid by the producers and others 
        in the industry who reap the benefits of such activities, 
        provide a unique opportunity for producers to inform consumers 
        about a particular agricultural commodity.
            (6) It is important to ensure that generic promotion, 
        research, and information activities for agricultural 
        commodities be carried out in an effective and coordinated 
        manner designed to strengthen the position of the commodities in 
        the marketplace and to maintain and expand their markets and 
        uses. Independent evaluation of the effectiveness of the generic 
        promotion activities of these programs will assist the Secretary 
        of Agriculture and Congress in ensuring that these objectives 
        are met.

[[Page 110 STAT. 1033]]

            (7) The cooperative development, financing, and 
        implementation of a coordinated national program of research, 
        promotion, and information regarding agricultural commodities 
        are necessary to maintain and expand existing markets and to 
        develop new markets for these commodities.
            (8) Agricultural commodities move in interstate and foreign 
        commerce, and agricultural commodities and their products that 
        do not move in such channels of commerce directly burden or 
        affect interstate commerce in agricultural commodities and their 
        products.
            (9) Commodity promotion programs have the ability to provide 
        significant conservation benefits to producers and the public.

    (b) Purpose.--The purpose of this subtitle is to authorize the 
establishment, through the exercise by the Secretary of Agriculture of 
the authority provided in this subtitle, of an orderly program for 
developing, financing, and carrying out an effective, continuous, and 
coordinated program of generic promotion, research, and information 
regarding agricultural commodities designed to--
            (1) strengthen the position of agricultural commodity 
        industries in the marketplace;
            (2) maintain and expand existing domestic and foreign 
        markets and uses for agricultural commodities;
            (3) develop new markets and uses for agricultural 
        commodities; or
            (4) assist producers in meeting their conservation 
        objectives.

    (c) Rule of Construction.--Nothing in this subtitle provides for the 
control of production or otherwise limits the right of any person to 
produce, handle, or import an agricultural commodity.

SEC. 513. <<NOTE: 7 USC 7412.>> DEFINITIONS.

    In this subtitle (unless the context otherwise requires):
            (1) Agricultural commodity.--The term ``agricultural 
        commodity'' means--
                    (A) agricultural, horticultural, viticultural, and 
                dairy products;
                    (B) livestock and the products of livestock;
                    (C) the products of poultry and bee raising;
                    (D) the products of forestry;
                    (E) other commodities raised or produced on farms, 
                as determined appropriate by the Secretary; and
                    (F) products processed or manufactured from products 
                specified in the preceding subparagraphs, as determined 
                appropriate by the Secretary.
            (2) Board.--The term ``board'' means a board established 
        under an order issued under section 514.
            (3) Conflict of interest.--The term ``conflict of interest'' 
        means a situation in which a member or employee of a board has a 
        direct or indirect financial interest in a person that performs 
        a service for, or enters into a contract with, a board for 
        anything of economic value.
            (4) Department.--The term ``Department'' means the 
        Department of Agriculture.
            (5) First handler.--The term ``first handler'' means the 
        first person who buys or takes possession of an agricultural 
        commodity from a producer for marketing. If a producer mar

[[Page 110 STAT. 1034]]

        kets the agricultural commodity directly to consumers, the 
        producer shall be considered to be the first handler with 
        respect to the agricultural commodity produced by the producer.
            (6) Importer.--The term ``importer'' means any person who 
        imports an agricultural commodity from outside the United States 
        for sale in the United States as a principal or as an agent, 
        broker, or consignee of any person.
            (7) Information.--The term ``information'' means information 
        and programs that are designed to increase--
                    (A) efficiency in processing; and
                    (B) the development of new markets, marketing 
                strategies, increased marketing efficiency, and 
                activities to enhance the image of agricultural 
                commodities on a national or international basis.
            (8) Market.--The term ``market'' means to sell or to 
        otherwise dispose of an agricultural commodity in interstate, 
        foreign, or intrastate commerce.
            (9) Order.--The term ``order'' means an order issued by the 
        Secretary under section 514 that provides for a program of 
        generic promotion, research, and information regarding 
        agricultural commodities designed to--
                    (A) strengthen the position of agricultural 
                commodity industries in the marketplace;
                    (B) maintain and expand existing domestic and 
                foreign markets and uses for agricultural commodities;
                    (C) develop new markets and uses for agricultural 
                commodities; or
                    (D) assist producers in meeting their conservation 
                objectives.
            (10) Person.--The term ``person'' means any individual, 
        group of individuals, partnership, corporation, association, 
        cooperative, or any other legal entity.
            (11) Producer.--The term ``producer'' means any person who 
        is engaged in the production and sale of an agricultural 
        commodity in the United States and who owns, or shares the 
        ownership and risk of loss of, the agricultural commodity.
            (12) Promotion.--The term ``promotion'' means any action 
        taken by a board under an order, including paid advertising, to 
        present a favorable image of an agricultural commodity to the 
        public to improve the competitive position of the agricultural 
        commodity in the marketplace and to stimulate sales of the 
        agricultural commodity.
            (13) Research.--The term ``research'' means any type of 
        test, study, or analysis designed to advance the image, 
        desirability, use, marketability, production, product 
        development, or quality of an agricultural commodity.
            (14) Secretary.--The term ``Secretary'' means the Secretary 
        of Agriculture.
            (15) State.--The term ``State'' means any of the States, the 
        District of Columbia, the Commonwealth of Puerto Rico, or any 
        territory or possession of the United States.
            (16) Suspend.--The term ``suspend'' means to issue a rule 
        under section 553 of title 5, United States Code, to temporarily 
        prevent the operation of an order during a particular period of 
        time specified in the rule.
            (17) Terminate.--The term ``terminate'' means to issue a 
        rule under section 553 of title 5, United States Code, to

[[Page 110 STAT. 1035]]

        cancel permanently the operation of an order beginning on a date 
        certain specified in the rule.
            (18) United states.--The term ``United States'' means 
        collectively the 50 States, the District of Columbia, the 
        Commonwealth of Puerto Rico and the territories and possessions 
        of the United States.

SEC. 514. <<NOTE: 7 USC 7413.>> ISSUANCE OF ORDERS.

    (a) Issuance Authorized.--
            (1) In general.--To effectuate the purpose of this subtitle, 
        the Secretary may issue, and amend from time to time, orders 
        applicable to--
                    (A) the producers of an agricultural commodity;
                    (B) the first handlers of the agricultural commodity 
                and other persons in the marketing chain as appropriate; 
                and
                    (C) the importers of the agricultural commodity, if 
                imports of the agricultural commodity are subject to 
                assessment under section 516(f).
            (2) National scope.--Each order issued under this section 
        shall be national in scope.

    (b) Procedure for Issuance.--
            (1) Development or receipt of proposed order.--A proposed 
        order with respect to an agricultural commodity may be--
                    (A) prepared by the Secretary at any time; or
                    (B) submitted to the Secretary by--
                          (i) an association of producers of the 
                      agricultural commodity; or
                          (ii) any other person that may be affected by 
                      the issuance of an order with respect to the 
                      agricultural commodity.
            (2) <<NOTE: Federal Register, publication.>> Consideration 
        of proposed order.--If the Secretary determines that a proposed 
        order is consistent with and will effectuate the purpose of this 
        subtitle, the Secretary shall publish the proposed order in the 
        Federal Register and give due notice and opportunity for public 
        comment on the proposed order.
            (3) Existence of other orders.--In deciding whether a 
        proposal for an order is consistent with and will effectuate the 
        purpose of this subtitle, the Secretary may consider the 
        existence of other Federal promotion, research, and information 
        programs or orders issued or developed pursuant to any other 
        law.
            (4) Preparation of final order.--After notice and 
        opportunity for public comment under paragraph (2) regarding a 
        proposed order, the Secretary shall take into consideration the 
        comments received in preparing a final order. The Secretary 
        shall ensure that the final order is in conformity with the 
        terms, conditions, and requirements of this subtitle.

    (c) Issuance and Effective Date.--If the Secretary determines that 
the final order developed with respect to an agricultural commodity is 
consistent with and will effectuate the purpose of this subtitle, the 
Secretary shall issue the final order. Except in the case of an order 
for which an initial referendum is conducted under section 518(a), the 
final order shall be issued and become

[[Page 110 STAT. 1036]]

effective not later than 270 days after the date of publication of the 
proposed order that was the basis for the final order.
    (d) Amendments.--From time to time the Secretary may amend any 
order, consistent with the requirements of section 523.

SEC. 515. <<NOTE: 7 USC 7414.>> REQUIRED TERMS IN ORDERS.

    (a) In General.--Each order shall contain the terms and conditions 
specified in this section.
    (b) Board.--
            (1) Establishment.--Each order shall establish a board to 
        carry out a program of generic promotion, research, and 
        information regarding the agricultural commodity covered by the 
        order and intended to effectuate the purpose of this subtitle.
            (2) Board membership.--
                    (A) Number of members.--Each board shall consist of 
                the number of members considered by the Secretary, in 
                consultation with the agricultural commodity industry 
                involved, to be appropriate to administer the order. In 
                addition to members, the Secretary may also provide for 
                alternates on the board.
                    (B) Appointment.--The Secretary shall appoint the 
                members and any alternates of a board from among 
                producers of the agricultural commodity and first 
                handlers and others in the marketing chain as 
                appropriate. If imports of the agricultural commodity 
                covered by an order are subject to assessment under 
                section 516(f), the Secretary shall also appoint 
                importers as members of the board and as alternates if 
                alternates are included on the board. The Secretary may 
                appoint 1 or more members of the general public to each 
                board.
                    (C) Nominations.--The Secretary may make 
                appointments from nominations made pursuant to the 
                method set forth in the order.
                    (D) Geographical representation.--To ensure fair and 
                equitable representation of the agricultural commodity 
                industry covered by an order, the composition of each 
                board shall reflect the geographical distribution of the 
                production of the agricultural commodity involved in the 
                United States and the quantity or value of the 
                agricultural commodity imported into the United States.
            (3) Reapportionment of board membership.--In accordance with 
        rules issued by the Secretary, at least once in each 5-year 
        period, but not more frequently than once in each 3-year period, 
        each board shall--
                    (A) review the geographical distribution in the 
                United States of the production of the agricultural 
                commodity covered by the order involved and the quantity 
                or value of the agricultural commodity imported into the 
                United States; and
                    (B) if warranted, recommend to the Secretary the 
                reapportionment of the board membership to reflect 
                changes in the geographical distribution of the 
                production of the agricultural commodity and the 
                quantity or value of the imported agricultural 
                commodity.
            (4) Notice.--

[[Page 110 STAT. 1037]]

                    (A) Vacancies.--Each order shall provide for notice 
                of board vacancies to the agricultural commodity 
                industry involved.
                    (B) Meetings.--Each board shall provide the 
                Secretary with prior notice of meetings of the board to 
                permit the Secretary, or a designated representative of 
                the Secretary, to attend the meetings.
            (5) Term of office.--
                    (A) In general.--The members and any alternates of a 
                board shall each serve for a term of 3 years, except 
                that the members and any alternates initially appointed 
                to a board shall serve for terms of not more than 2, 3, 
                and 4 years, as specified by the order.
                    (B) Limitation on consecutive terms.--A member or 
                alternate may serve not more than 2 consecutive terms.
                    (C) Continuation of term.--Notwithstanding 
                subparagraph (B), each member or alternate shall 
                continue to serve until a successor is appointed by the 
                Secretary.
                    (D) Vacancies.--A vacancy arising before the 
                expiration of a term of office of an incumbent member or 
                alternate of a board shall be filled in a manner 
                provided for in the order.
            (6) Compensation.--
                    (A) In general.--Members and any alternates of a 
                board shall serve without compensation.
                    (B) Travel expenses.--If approved by a board, 
                members or alternates shall be reimbursed for reasonable 
                travel expenses, which may include a per diem allowance 
                or actual subsistence incurred while away from their 
                homes or regular places of business in the performance 
                of services for the board.

    (c) Powers and Duties of a Board.--Each order shall specify the 
powers and duties of the board established under the order, which shall 
include the power and duty--
            (1) to administer the order in accordance with its terms and 
        conditions and to collect assessments;
            (2) to develop and recommend to the Secretary for approval 
        such bylaws as may be necessary for the functioning of the board 
        and such rules as may be necessary to administer the order, 
        including activities authorized to be carried out under the 
        order;
            (3) to meet, organize, and select from among the members of 
        the board a chairperson, other officers, and committees and 
        subcommittees, as the board determines to be appropriate;
            (4) to employ persons, other than the members, as the board 
        considers necessary to assist the board in carrying out its 
        duties, and to determine the compensation and specify the duties 
        of the persons;
            (5) subject to subsection (e), to develop and carry out 
        generic promotion, research, and information activities relating 
        to the agricultural commodity covered by the order;
            (6) to prepare and submit for the approval of the Secretary, 
        before the beginning of each fiscal year, rates of assessment 
        under section 517 and an annual budget of the anticipated 
        expenses to be incurred in the administration of the order, 
        including the probable cost of each promotion, research, and

[[Page 110 STAT. 1038]]

        information activity proposed to be developed or carried out by 
        the board;
            (7) to borrow funds necessary for the startup expenses of 
        the order;
            (8) subject to subsection (f), to enter into contracts or 
        agreements to develop and carry out generic promotion, research, 
        and information activities relating to the agricultural 
        commodity covered by the order;
            (9) to pay the cost of the activities with assessments 
        collected under section 517, earnings from invested assessments, 
        and other funds;
            (10) <<NOTE: Records.>>  to keep records that accurately 
        reflect the actions and transactions of the board, to keep and 
        report minutes of each meeting of the board to the Secretary, 
        and to furnish the Secretary with any information or records the 
        Secretary requests;
            (11) to receive, investigate, and report to the Secretary 
        complaints of violations of the order; and
            (12) to recommend to the Secretary such amendments to the 
        order as the board considers appropriate.

    (d) Prohibited Activities.--A board may not engage in, and shall 
prohibit the employees and agents of the board from engaging in--
            (1) any action that would be a conflict of interest;
            (2) using funds collected by the board under the order, any 
        action undertaken for the purpose of influencing any legislation 
        or governmental action or policy other than recommending to the 
        Secretary amendments to the order; and
            (3) any advertising, including promotion, research, and 
        information activities authorized to be carried out under the 
        order, that may be false or misleading or disparaging to another 
        agricultural commodity.

    (e) Activities and Budgets.--
            (1) Activities.--Each order shall require the board 
        established under the order to submit to the Secretary for 
        approval plans and projects for promotion, research, or 
        information relating to the agricultural commodity covered by 
        the order.
            (2) Budgets.--
                    (A) Submission to secretary.--Each order shall 
                require the board established under the order to submit 
                to the Secretary for approval a budget of its 
                anticipated annual expenses and disbursements to be paid 
                to administer the order. The budget shall be submitted 
                before the beginning of a fiscal year and as frequently 
                as may be necessary after the beginning of the fiscal 
                year.
                    (B) Reimbursement of secretary.--Each order shall 
                require that the Secretary be reimbursed for all 
                expenses incurred by the Secretary in the 
                implementation, administration, and supervision of the 
                order, including all referenda costs incurred in 
                connection with the order.
            (3) Incurring expenses.--A board may incur the expenses 
        described in paragraph (2) and other expenses for the 
        administration, maintenance, and functioning of the board as 
        authorized by the Secretary.
            (4) Payment of expenses.--Expenses incurred under paragraph 
        (3) shall be paid by a board using assessments collected under 
        section 517, earnings obtained from assessments, and

[[Page 110 STAT. 1039]]

        other income of the board. Any funds borrowed by the board shall 
        be expended only for startup costs and capital outlays.
            (5) Limitation on spending.--For fiscal years beginning 3 or 
        more years after the date of the establishment of a board, the 
        board may not expend for administration (except for 
        reimbursements to the Secretary required under paragraph 
        (2)(B)), maintenance, and functioning of the board in a fiscal 
        year an amount that exceeds 15 percent of the assessment and 
        other income received by the board for the fiscal year.

    (f) Contracts and Agreements.--
            (1) In general.--Each order shall provide that, with the 
        approval of the Secretary, the board established under the order 
        may--
                    (A) enter into contracts and agreements to carry out 
                generic promotion, research, and information activities 
                relating to the agricultural commodity covered by the 
                order, including contracts and agreements with producer 
                associations or other entities as considered appropriate 
                by the Secretary; and
                    (B) pay the cost of approved generic promotion, 
                research, and information activities using assessments 
                collected under section 517, earnings obtained from 
                assessments, and other income of the board.
            (2) Requirements.--Each contract or agreement shall provide 
        that any person who enters into the contract or agreement with 
        the board shall--
                    (A) develop and submit to the board a proposed 
                activity together with a budget that specifies the cost 
                to be incurred to carry out the activity;
                    (B) <<NOTE: Records.>>  keep accurate records of all 
                of its transactions relating to the contract or 
                agreement;
                    (C) account for funds received and expended in 
                connection with the contract or agreement;
                    (D) make periodic reports to the board of activities 
                conducted under the contract or agreement; and
                    (E) make such other reports as the board or the 
                Secretary considers relevant.

    (g) Records of Board.--
            (1) In general.--Each order shall require the board 
        established under the order--
                    (A) to maintain such records as the Secretary may 
                require and to make the records available to the 
                Secretary for inspection and audit;
                    (B) to collect and submit to the Secretary, at any 
                time the Secretary may specify, any information the 
                Secretary may request; and
                    (C) to account for the receipt and disbursement of 
                all funds in the possession, or under the control, of 
                the board.
            (2) Audits.--Each order shall require the board established 
        under the order to have--
                    (A) its records audited by an independent auditor at 
                the end of each fiscal year; and
                    (B) <<NOTE: Reports.>>  a report of the audit 
                submitted directly to the Secretary.

    (h) Periodic Evaluation.--In accordance with section 501(c), each 
order shall require the board established under the order

[[Page 110 STAT. 1040]]

to provide for the independent evaluation of all generic promotion, 
research, and information activities undertaken under the order.
    (i) Books and Records of Persons Covered by Order.--
            (1) In general.--Each order shall require that producers, 
        first handlers and other persons in the marketing chain as 
        appropriate, and importers covered by the order shall--
                    (A) maintain records sufficient to ensure compliance 
                with the order and regulations;
                    (B) submit to the board established under the order 
                any information required by the board to carry out its 
                responsibilities under the order; and
                    (C) make the records described in subparagraph (A) 
                available, during normal business hours, for inspection 
                by employees or agents of the board or the Department, 
                including any records necessary to verify information 
                required under subparagraph (B).
            (2) Time requirement.--Any record required to be maintained 
        under paragraph (1) shall be maintained for such time period as 
        the Secretary may prescribe.
            (3) Other information.--The Secretary may use, and may 
        authorize the board to use under this subtitle, information 
        regarding persons subject to an order that is collected by the 
        Department under any other law.
            (4) Confidentiality of information.--
                    (A) In general.--Except as otherwise provided in 
                this subtitle, all information obtained under paragraph 
                (1) or as part of a referendum under section 518 shall 
                be kept confidential by all officers, employees, and 
                agents of the Department and of the board.
                    (B) Disclosure.--Information referred to in 
                subparagraph (A) may be disclosed only if--
                          (i) the Secretary considers the information 
                      relevant; and
                          (ii) the information is revealed in a judicial 
                      proceeding or administrative hearing brought at 
                      the direction or on the request of the Secretary 
                      or to which the Secretary or any officer of the 
                      Department is a party.
                    (C) Other exceptions.--This paragraph shall not 
                prohibit--
                          (i) the issuance of general statements based 
                      on reports or on information relating to a number 
                      of persons subject to an order if the statements 
                      do not identify the information furnished by any 
                      person; or
                          (ii) the publication, by direction of the 
                      Secretary, of the name of any person violating any 
                      order and a statement of the particular provisions 
                      of the order violated by the person.
                    (D) Penalty.--Any person who willfully violates this 
                subsection shall be subject, on conviction, to a fine of 
                not more than $1,000 or to imprisonment for not more 
                than 1 year, or both.
            (5) Withholding information.--This subsection shall not 
        authorize the withholding of information from Congress.

[[Page 110 STAT. 1041]]

SEC. 516. <<NOTE: 7 USC 7415.>>  PERMISSIVE TERMS IN ORDERS.

    (a) Exemptions.--An order issued under this subtitle may contain--
            (1) authority for the Secretary to exempt from the order any 
        de minimis quantity of an agricultural commodity otherwise 
        covered by the order; and
            (2) authority for the board established under the order to 
        require satisfactory safeguards against improper use of the 
        exemption.

    (b) Different Payment and Reporting Schedules.--An order issued 
under this subtitle may contain authority for the board established 
under the order to designate different payment and reporting schedules 
to recognize differences in agricultural commodity industry marketing 
practices and procedures used in different production and importing 
areas.
    (c) Activities.--An order issued under this subtitle may contain 
authority to develop and carry out research, promotion, and information 
activities designed to expand, improve, or make more efficient the 
marketing or use of the agricultural commodity covered by the order in 
domestic and foreign markets. Section 515(e) shall apply with respect to 
activities authorized under this subsection.
    (d) Reserve Funds.--An order issued under this subtitle may contain 
authority to reserve funds from assessments collected under section 517 
to permit an effective and continuous coordinated program of research, 
promotion, and information in years when the yield from assessments may 
be reduced, except that the amount of funds reserved may not exceed the 
greatest aggregate amount of the anticipated disbursements specified in 
budgets approved under section 515(e) by the Secretary for any 2 fiscal 
years.
    (e) Credits.--
            (1) Generic activities.--An order issued under this subtitle 
        may contain authority to provide credits of assessments for 
        those individuals who contribute to other similar generic 
        research, promotion, and information programs at the State, 
        regional, or local level.
            (2) Branded activities.--
                    (A) In general.--The Secretary may permit a farmer 
                cooperative that engages in branded activities relating 
                to the marketing of the products of members of the 
                cooperative to receive an annual credit for the 
                activities and related expenditures in the form of a 
                deduction of the total cost of the activities and 
                related expenditures from the amount of any assessment 
                that would otherwise be required to be paid by the 
                producer members of the cooperative under an order 
                issued under this subtitle.
                    (B) Election by cooperative.--A farmer cooperative 
                may elect to voluntarily waive the application of 
                subparagraph (A) to the cooperative.

    (f) Assessment of Imports.--An order issued under this subtitle may 
contain authority for the board established under the order to assess 
under section 517 an imported agricultural commodity, or products of 
such an agricultural commodity, at a rate comparable to the rate 
determined by the appropriate board for the domestic agricultural 
commodity covered by the order.
    (g) Other Authority.--An order issued under this subtitle may 
contain authority to take any other action that--

[[Page 110 STAT. 1042]]

            (1) is not inconsistent with the purpose of this subtitle, 
        any term or condition specified in section 515, or any rule 
        issued to carry out this subtitle; and
            (2) is necessary to administer the order.

SEC. 517. <<NOTE: 7 USC 7416.>>  ASSESSMENTS.

    (a) Assessments Authorized.--While an order issued under this 
subtitle is in effect with respect to an agricultural commodity, 
assessments shall be--
            (1) paid by first handlers with respect to the agricultural 
        commodity produced and marketed in the United States; and
            (2) paid by importers with respect to the agricultural 
        commodity imported into the United States, if the imported 
        agricultural commodity is covered by the order pursuant to 
        section 516(f).

    (b) Collection.--Assessments required under an order shall be 
remitted to the board established under the order at the time and in the 
manner prescribed by the order.
    (c) Limitation on Assessments.--Not more than 1 assessment may be 
levied on a first handler or importer under subsection (a) with respect 
to any agricultural commodity.
    (d) Assessment Rates.--The board shall recommend to the Secretary 1 
or more rates of assessment to be levied under subsection (a). If 
approved by the Secretary, the rates shall take effect. An order may 
provide that an assessment rate may not be increased unless approved by 
a referendum conducted pursuant to section 518.
    (e) Late-Payment and Interest Charges.--
            (1) In general.--Late-payment and interest charges may be 
        levied on each person subject to an order who fails to remit an 
        assessment in accordance with subsection (b).
            (2) Rate.--The rate for the charges shall be specified by 
        the Secretary.

    (f) Investment of Assessments.--Pending disbursement of assessments 
under a budget approved by the Secretary, a board may invest assessments 
collected under this section in--
            (1) obligations of the United States or any agency of the 
        United States;
            (2) general obligations of any State or any political 
        subdivision of a State;
            (3) interest-bearing accounts or certificates of deposit of 
        financial institutions that are members of the Federal Reserve 
        System; or
            (4) obligations fully guaranteed as to principal and 
        interest by the United States.

    (g) Refund of Assessments From Escrow Account.--
            (1) Escrow account.--During the period beginning on the 
        effective date of an order and ending on the date the Secretary 
        announces the results of a referendum that is conducted under 
        section 518(b)(1) with respect to the order, the board 
        established under the order shall--
                    (A) establish and maintain an escrow account of the 
                kind described in subsection (f)(3) to be used to refund 
                assessments; and
                    (B) deposit funds in the account in accordance with 
                paragraph (2).

[[Page 110 STAT. 1043]]

            (2) Amount to be deposited.--The board shall deposit in the 
        account an amount equal to 10 percent of the assessments 
        collected during the period referred to in paragraph (1).
            (3) Right to receive refund.--Subject to paragraphs (4), 
        (5), and (6), persons subject to an order shall be eligible to 
        demand a refund of assessments collected during the period 
        referred to in paragraph (1) if--
                    (A) the assessments were remitted on behalf of the 
                person; and
                    (B) the order is not approved in the referendum.
            (4) Form of demand.--The demand for a refund shall be made 
        at such time and in such form as specified by the order.
            (5) Payment of refund.--A person entitled to a refund shall 
        be paid promptly after the board receives satisfactory proof 
        that the assessment for which the refund is demanded was paid on 
        behalf of the person who makes the demand.
            (6) Proration.--If the funds in the escrow account required 
        by paragraph (1) are insufficient to pay the amount of all 
        refunds that persons subject to an order otherwise would have a 
        right to receive under this subsection, the board shall prorate 
        the amount of the funds among all the persons.
            (7) Closing of escrow account.--If the order is approved in 
        a referendum conducted under section 518(b)(1)--
                    (A) the escrow account shall be closed; and
                    (B) the funds shall be available to the board for 
                disbursement as authorized in the order.

SEC. 518. <<NOTE: 7 USC 7417.>>  REFERENDA.

    (a) Initial Referendum.--
            (1) Optional referendum.--For the purpose of ascertaining 
        whether the persons to be covered by an order favor the order 
        going into effect, the order may provide for the Secretary to 
        conduct an initial referendum among persons to be subject to an 
        assessment under section 517 who, during a representative period 
        determined by the Secretary, engaged in--
                    (A) the production or handling of the agricultural 
                commodity covered by the order; or
                    (B) the importation of the agricultural commodity.
            (2) Procedure.--The results of the referendum shall be 
        determined in accordance with subsection (e). The Secretary may 
        require that the agricultural commodity industry involved post a 
        bond or other collateral to cover the cost of the referendum.

    (b) Required Referenda.--
            (1) In general.--For the purpose of ascertaining whether the 
        persons covered by an order favor the continuation, suspension, 
        or termination of the order, the Secretary shall conduct a 
        referendum among persons subject to assessments under section 
        517 who, during a representative period determined by the 
        Secretary, have engaged in--
                    (A) the production or handling of the agricultural 
                commodity covered by the order; or
                    (B) the importation of the agricultural commodity.

[[Page 110 STAT. 1044]]

            (2) Time for referendum.--The referendum shall be conducted 
        not later than 3 years after assessments first begin under the 
        order.
            (3) Exception.--This subsection shall not apply if an 
        initial referendum was conducted under subsection (a).

    (c) Subsequent Referenda.--The Secretary shall conduct a subsequent 
referendum--
            (1) not later than 7 years after assessments first begin 
        under the order;
            (2) at the request of the board established under the order; 
        or
            (3) at the request of 10 percent or more of the number of 
        persons eligible to vote under subsection (b)(1);

to determine if the persons favor the continuation, suspension, or 
termination of the order.
    (d) Other Referenda.--The Secretary may conduct a referendum at any 
time to determine whether the continuation, suspension, or termination 
of the order or a provision of the order is favored by persons eligible 
to vote under subsection (b)(1).
    (e) Approval of Order.--An order may provide for its approval in a 
referendum--
            (1) by a majority of those persons voting;
            (2) by persons voting for approval who represent a majority 
        of the volume of the agricultural commodity; or
            (3) by a majority of those persons voting for approval who 
        also represent a majority of the volume of the agricultural 
        commodity.

    (f) Costs of Referenda.--The board established under an order with 
respect to which a referendum is conducted under this section shall 
reimburse the Secretary for any expenses incurred by the Secretary to 
conduct the referendum.
    (g) Manner of Conducting Referenda.--
            (1) In general.--A referendum conducted under this section 
        shall be conducted in the manner determined by the Secretary to 
        be appropriate.
            (2) Advance registration.--If the Secretary determines that 
        an advance registration of eligible voters in a referendum is 
        necessary before the voting period in order to facilitate the 
        conduct of the referendum, the Secretary may institute the 
        advance registration procedures by mail, or in person through 
        the use of national and local offices of the Department.
            (3) Voting.--Eligible voters may vote by mail ballot in the 
        referendum or in person if so prescribed by the Secretary.
            (4) Notice.--Not later than 30 days before a referendum is 
        conducted under this section with respect to an order, the 
        Secretary shall notify the agricultural commodity industry 
        involved, in such manner as determined by the Secretary, of the 
        period during which voting in the referendum will occur. The 
        notice shall explain any registration and voting procedures 
        established under this subsection.

SEC. 519. <<NOTE: 7 USC 7418.>>  PETITION AND REVIEW OF ORDERS.

    (a) Petition.--
            (1) In general.--A person subject to an order issued under 
        this subtitle may file with the Secretary a petition--

[[Page 110 STAT. 1045]]

                    (A) stating that the order, any provision of the 
                order, or any obligation imposed in connection with the 
                order, is not established in accordance with law; and
                    (B) requesting a modification of the order or an 
                exemption from the order.
            (2) Hearing.--The Secretary shall give the petitioner an 
        opportunity for a hearing on the petition, in accordance with 
        regulations issued by the Secretary.
            (3) Ruling.--After the hearing, the Secretary shall make a 
        ruling on the petition. The ruling shall be final, subject to 
        review as set forth in subsection (b).
            (4) Limitation on petition.--Any petition filed under this 
        subsection challenging an order, any provision of the order, or 
        any obligation imposed in connection with the order, shall be 
        filed within 2 years after the effective date of the order, 
        provision, or obligation subject to challenge in the petition.

    (b) Review.--
            (1) <<NOTE: Courts.>>  Commencement of action.--The district 
        court of the United States for any district in which a person 
        who is a petitioner under subsection (a) resides or carries on 
        business shall have jurisdiction to review the final ruling on 
        the petition of the person, if a complaint for that purpose is 
        filed not later than 20 days after the date of the entry of the 
        final ruling by the Secretary under subsection (a)(3).
            (2) Process.--Service of process in a proceeding may be made 
        on the Secretary by delivering a copy of the complaint to the 
        Secretary.
            (3) Remands.--If the court determines that the ruling is not 
        in accordance with law, the court shall remand the matter to the 
        Secretary with directions--
                    (A) to make such ruling as the court determines to 
                be in accordance with law; or
                    (B) to take such further action as, in the opinion 
                of the court, the law requires.

    (c) Effect on Enforcement Proceedings.--The pendency of a petition 
filed under subsection (a) or an action commenced under subsection (b) 
shall not operate as a stay of any action authorized by section 520 to 
be taken to enforce this subtitle, including any rule, order, or penalty 
in effect under this subtitle.

SEC. 520. <<NOTE: 7 USC 7419.>>  ENFORCEMENT.

    (a) <<NOTE: Courts.>>  Jurisdiction.--The district courts of the 
United States shall have jurisdiction specifically to enforce, and to 
prevent and restrain a person from violating, an order or regulation 
issued under this subtitle.

    (b) Referral to Attorney General.--A civil action authorized to be 
brought under this section shall be referred to the Attorney General for 
appropriate action, except that the Secretary shall not be required to 
refer to the Attorney General a violation of this subtitle if the 
Secretary believes that the administration and enforcement of this 
subtitle would be adequately served by providing a suitable written 
notice or warning to the person who committed the violation or by an 
administrative action under this section.
    (c) Civil Penalties and Orders.--
            (1) Civil penalties.--A person who willfully violates an 
        order or regulation issued by the Secretary under this Act

[[Page 110 STAT. 1046]]

        may be assessed by the Secretary a civil penalty of not less 
        than $1,000 and not more than $10,000 for each violation.
            (2) Separate offense.--Each violation and each day during 
        which there is a failure to comply with an order or regulation 
        issued by the Secretary shall be considered to be a separate 
        offense.
            (3) Cease-and-desist orders.--In addition to, or in lieu of, 
        a civil penalty, the Secretary may issue an order requiring a 
        person to cease and desist from violating the order or 
        regulation.
            (4) Notice and hearing.--No order assessing a penalty or 
        cease-and-desist order may be issued by the Secretary under this 
        subsection unless the Secretary provides notice and an 
        opportunity for a hearing on the record with respect to the 
        violation.
            (5) Finality.--An order assessing a penalty or a cease-and-
        desist order issued under this subsection by the Secretary shall 
        be final and conclusive unless the person against whom the order 
        is issued files an appeal from the order with the United States 
        court of appeals, as provided in subsection (d).

    (d) Review by Court of Appeals.--
            (1) In general.--A person against whom an order is issued 
        under subsection (c) may obtain review of the order by--
                    (A) filing, not later than 30 days after the person 
                receives notice of the order, a notice of appeal in--
                          (i) the United States court of appeals for the 
                      circuit in which the person resides or carries on 
                      business; or
                          (ii) the United States Court of Appeals for 
                      the District of Columbia Circuit; and
                    (B) simultaneously sending a copy of the notice of 
                appeal by certified mail to the Secretary.
            (2) Record.--The Secretary shall file with the court a 
        certified copy of the record on which the Secretary has 
        determined that the person has committed a violation.
            (3) Standard of review.--A finding of the Secretary under 
        this section shall be set aside only if the finding is found to 
        be unsupported by substantial evidence on the record.

    (e) Failure To Obey Cease-and-Desist Orders.--A person who fails to 
obey a valid cease-and-desist order issued by the Secretary under this 
section, after an opportunity for a hearing, shall be subject to a civil 
penalty assessed by the Secretary of not less than $1,000 and not more 
than $10,000 for each offense. Each day during which the failure 
continues shall be considered to be a separate violation of the cease-
and-desist order.
    (f) Failure To Pay Penalties.--If a person fails to pay a civil 
penalty imposed under this section by the Secretary, the Secretary shall 
refer the matter to the Attorney General for recovery of the amount 
assessed in the district court of the United States for any district in 
which the person resides or carries on business. In the action, the 
validity and appropriateness of the order imposing the civil penalty 
shall not be subject to review.
    (g) Additional Remedies.--The remedies provided in this section 
shall be in addition to, and not exclusive of, other remedies that may 
be available.

[[Page 110 STAT. 1047]]

SEC. 521. <<NOTE: 7 USC 7420.>>  INVESTIGATIONS AND POWER TO SUBPOENA.

    (a) Investigations.--The Secretary may make such investigations as 
the Secretary considers necessary--
            (1) for the effective administration of this subtitle; or
            (2) to determine whether any person subject to this subtitle 
        has engaged, or is about to engage, in any action that 
        constitutes or will constitute a violation of this subtitle or 
        any order or regulation issued under this subtitle.

    (b) Subpoenas, Oaths, and Affirmations.--For the purpose of any 
investigation under subsection (a), the Secretary may administer oaths 
and affirmations, subpoena witnesses, compel the attendance of 
witnesses, take evidence, and require the production of any records or 
documents that are relevant to the inquiry. The attendance of witnesses 
and the production of records or documents may be required from any 
place in the United States.
    (c) Aid of Courts.--In the case of contumacy by, or refusal to obey 
a subpoena issued to, any person, the Secretary may invoke the aid of 
any court of the United States within the jurisdiction of which the 
investigation or proceeding is carried on, or where the person resides 
or carries on business, in order to require the attendance and testimony 
of the person or the production of records or documents. The court may 
issue an order requiring the person to appear before the Secretary to 
produce records or documents or to give testimony regarding the matter 
under investigation.
    (d) Contempt.--Any failure to obey the order of the court may be 
punished by the court as a contempt of the court.
    (e) Process.--Process in any case under this section may be served 
in the judicial district in which the person resides or carries on 
business or wherever the person may be found.

SEC. 522. <<NOTE: 7 USC 7421.>>  SUSPENSION OR TERMINATION.

    (a) Mandatory Suspension or Termination.--The Secretary shall 
suspend or terminate an order or a provision of an order if the 
Secretary finds that an order or a provision of an order obstructs or 
does not tend to effectuate the purpose of this subtitle, or if the 
Secretary determines that the order or a provision of an order is not 
favored by persons voting in a referendum conducted under section 518.
    (b) Implementation of Suspension or Termination.--If, as a result of 
a referendum conducted under section 518, the Secretary determines that 
an order is not approved, the Secretary shall--
            (1) not later than 180 days after making the determination, 
        suspend or terminate, as the case may be, collection of 
        assessments under the order; and
            (2) as soon as practicable, suspend or terminate, as the 
        case may be, activities under the order in an orderly manner.

SEC. 523. <<NOTE: 7 USC 7422.>>  AMENDMENTS TO ORDERS.

    The provisions of this subtitle applicable to an order shall be 
applicable to any amendment to an order, except that section 518 shall 
not apply to an amendment.

SEC. 524. <<NOTE: 7 USC 7423.>>  EFFECT ON OTHER LAWS.

    This subtitle shall not affect or preempt any other Federal or State 
law authorizing promotion or research relating to an agricultural 
commodity.

[[Page 110 STAT. 1048]]

SEC. 525. <<NOTE: 7 USC 7424.>>  REGULATIONS.

    The Secretary may issue such regulations as may be necessary to 
carry out this subtitle and the power vested in the Secretary under this 
subtitle.

SEC. 526. <<NOTE: 7 USC 7425.>>  AUTHORIZATION OF APPROPRIATIONS.

    (a) In General.--There are authorized to be appropriated such sums 
as may be necessary to carry out this subtitle.
    (b) Limitation on Expenditures for Administrative Expenses.--Funds 
appropriated to carry out this subtitle may not be expended for the 
payment of expenses incurred by a board to administer an order.

   Subtitle C-- <<NOTE: Canola and Rapeseed Research, Promotion, and 
Consumer Information Act.>> Canola and Rapeseed

SEC. 531. <<NOTE: 7 USC 7401 note.>>  SHORT TITLE.

    This subtitle may be cited as the ``Canola and Rapeseed Research, 
Promotion, and Consumer Information Act''.

SEC. 532. <<NOTE: 7 USC 7441.>>  FINDINGS AND DECLARATION OF POLICY.

    (a) Findings.--Congress finds that--
            (1) canola and rapeseed products are an important and 
        nutritious part of the human diet;
            (2) the production of canola and rapeseed products plays a 
        significant role in the economy of the United States in that--
                    (A) canola and rapeseed products are produced by 
                thousands of canola and rapeseed producers and processed 
                by numerous processing entities; and
                    (B) canola and rapeseed products produced in the 
                United States are consumed by people throughout the 
                United States and foreign countries;
            (3) canola, rapeseed, and canola and rapeseed products 
        should be readily available and marketed efficiently to ensure 
        that consumers have an adequate supply of canola and rapeseed 
        products at a reasonable price;
            (4) the maintenance and expansion of existing markets and 
        development of new markets for canola, rapeseed, and canola and 
        rapeseed products are vital to the welfare of canola and 
        rapeseed producers and processors and those persons concerned 
        with marketing canola, rapeseed, and canola and rapeseed 
        products, as well as to the general economy of the United 
        States, and are necessary to ensure the ready availability and 
        efficient marketing of canola, rapeseed, and canola and rapeseed 
        products;
            (5) there exist established State and national organizations 
        conducting canola and rapeseed research, promotion, and consumer 
        education programs that are valuable to the efforts of promoting 
        the consumption of canola, rapeseed, and canola and rapeseed 
        products;
            (6) the cooperative development, financing, and 
        implementation of a coordinated national program of canola and 
        rapeseed research, promotion, consumer information, and industry 
        information is necessary to maintain and expand existing markets 
        and develop new markets for canola, rapeseed, and canola and 
        rapeseed products; and
            (7) canola, rapeseed, and canola and rapeseed products move 
        in interstate and foreign commerce, and canola, rapeseed,

[[Page 110 STAT. 1049]]

        and canola and rapeseed products that do not move in interstate 
        or foreign commerce directly burden or affect interstate 
        commerce in canola, rapeseed, and canola and rapeseed products.

    (b) Policy.--It is the policy of this subtitle to establish an 
orderly procedure for developing, financing through assessments on 
domestically produced canola and rapeseed, and implementing a program of 
research, promotion, consumer information, and industry information 
designed to strengthen the position in the marketplace of the canola and 
rapeseed industry, to maintain and expand existing domestic and foreign 
markets and uses for canola, rapeseed, and canola and rapeseed products, 
and to develop new markets and uses for canola, rapeseed, and canola and 
rapeseed products.
    (c) Construction.--Nothing in this subtitle provides for the control 
of production or otherwise limits the right of individual producers to 
produce canola, rapeseed, or canola or rapeseed products.

SEC. 533. <<NOTE: 7 USC 7442.>>  DEFINITIONS.

    In this subtitle (unless the context otherwise requires):
            (1) Board.--The term ``Board'' means the National Canola and 
        Rapeseed Board established under section 535(b).
            (2) Canola; rapeseed.--The terms ``canola'' and ``rapeseed'' 
        mean any brassica plant grown in the United States for the 
        production of an oilseed, the oil of which is used for a food or 
        nonfood use.
            (3) Canola or rapeseed product.--The term ``canola or 
        rapeseed product'' means a product produced, in whole or in 
        part, from canola or rapeseed.
            (4) Commerce.--The term ``commerce'' includes interstate, 
        foreign, and intrastate commerce.
            (5) Conflict of interest.--The term ``conflict of interest'' 
        means a situation in which a member of the Board has a direct or 
        indirect financial interest in a corporation, partnership, sole 
        proprietorship, joint venture, or other business entity dealing 
        directly or indirectly with the Board.
            (6) Consumer information.--The term ``consumer information'' 
        means information that will assist consumers and other persons 
        in making evaluations and decisions regarding the purchase, 
        preparation, and use of canola, rapeseed, or canola or rapeseed 
        products.
            (7) Department.--The term ``Department'' means the 
        Department of Agriculture.
            (8) First purchaser.--The term ``first purchaser'' means--
                    (A) except as provided in subparagraph (B), a person 
                who buys or otherwise acquires canola, rapeseed, or 
                canola or rapeseed products produced by a producer; or
                    (B) the Commodity Credit Corporation, in a case in 
                which canola or rapeseed is forfeited to the Commodity 
                Credit Corporation as collateral for a loan issued under 
                a price support loan program administered by the 
                Commodity Credit Corporation.
            (9) Industry information.--The term ``industry information'' 
        means information or a program that will lead to the development 
        of new markets, new marketing strategies, or increased 
        efficiency for the canola and rapeseed industry, or an activity 
        to enhance the image of the canola or rapeseed industry.

[[Page 110 STAT. 1050]]

            (10) Industry member.--The term ``industry member'' means a 
        member of the canola and rapeseed industry who represents--
                    (A) manufacturers of canola or rapeseed products; or
                    (B) persons who commercially buy or sell canola or 
                rapeseed.
            (11) Marketing.--The term ``marketing'' means the sale or 
        other disposition of canola, rapeseed, or canola or rapeseed 
        products in a channel of commerce.
            (12) Order.--The term ``order'' means an order issued under 
        section 534.
            (13) Person.--The term ``person'' means an individual, 
        partnership, corporation, association, cooperative, or any other 
        legal entity.
            (14) Producer.--The term ``producer'' means a person engaged 
        in the growing of canola or rapeseed in the United States who 
        owns, or who shares the ownership and risk of loss of, the 
        canola or rapeseed.
            (15) Promotion.--The term ``promotion'' means an action, 
        including paid advertising, technical assistance, or a trade 
        servicing activity, to enhance the image or desirability of 
        canola, rapeseed, or canola or rapeseed products in domestic and 
        foreign markets, or an activity designed to communicate to 
        consumers, processors, wholesalers, retailers, government 
        officials, or other persons information relating to the positive 
        attributes of canola, rapeseed, or canola or rapeseed products 
        or the benefits of use or distribution of canola, rapeseed, or 
        canola or rapeseed products.
            (16) Research.--The term ``research'' means any type of 
        test, study, or analysis to advance the image, desirability, 
        marketability, production, product development, quality, or 
        functional or nutritional value of canola, rapeseed, or canola 
        or rapeseed products, including research activity designed to 
        identify and analyze barriers to export sales of canola or 
        rapeseed produced in the United States.
            (17) Secretary.--The term ``Secretary'' means the Secretary 
        of Agriculture.
            (18)  State.--The term ``State'' means any of the 50 States, 
        the District of Columbia and the Commonwealth of Puerto Rico.
            (19)  United states.--The term ``United States'' means 
        collectively the 50 States, the District of Columbia, and the 
        Commonwealth of Puerto Rico.

SEC. 534. <<NOTE: 7 USC 7443.>>  ISSUANCE AND AMENDMENT OF ORDERS.

    (a) In General.--Subject to subsection (b), the Secretary shall 
issue 1 or more orders under this subtitle applicable to producers and 
first purchasers of canola, rapeseed, or canola or rapeseed products. 
The order shall be national in scope. Not more than 1 order shall be in 
effect under this subtitle at any 1 time.
    (b) Procedure.--
            (1) Proposal or request for issuance.--The Secretary may 
        propose the issuance of an order under this subtitle, or an 
        association of canola and rapeseed producers or any other person 
        that would be affected by an order issued pursuant to this 
        subtitle may request the issuance of, and submit a proposal for, 
        an order.

[[Page 110 STAT. 1051]]

            (2) <<NOTE: Publication.>>  Notice and comment concerning 
        proposed order.--Not later than 60 days after the receipt of a 
        request and proposal for an order pursuant to paragraph (1), or 
        whenever the Secretary determines to propose an order, the 
        Secretary shall publish a proposed order and give due notice and 
        opportunity for public comment on the proposed order.
            (3) Issuance of order.--After notice and opportunity for 
        public comment are given as provided in paragraph (2), the 
        Secretary shall issue an order, taking into consideration the 
        comments received and including in the order provisions 
        necessary to ensure that the order is in conformity with the 
        requirements of this subtitle. <<NOTE: Effective date.>>  The 
        order shall be issued and become effective not later than 180 
        days following publication of the proposed order.

    (c) Amendments.--The Secretary may amend an order issued under this 
section.

SEC. 535. <<NOTE: 7 USC 7444.>>  REQUIRED TERMS IN ORDERS.

    (a) In General.--An order issued under this subtitle shall contain 
the terms and conditions specified in this section.
    (b) Establishment and Membership of the National Canola and Rapeseed 
Board.--
            (1) In general.--The order shall provide for the 
        establishment of, and appointment of members to, a National 
        Canola and Rapeseed Board to administer the order.
            (2) Service to entire industry.--The Board shall carry out 
        programs and projects that will provide maximum benefit to the 
        canola and rapeseed industry in all parts of the United States 
        and only promote canola, rapeseed, or canola or rapeseed 
        products.
            (3) Board membership.--The Board shall consist of 15 
        members, including--
                    (A) 11 members who are producers, including--
                          (i) 1 member from each of the 6 geographic 
                      regions comprised of States where canola or 
                      rapeseed is produced, as determined by the 
                      Secretary; and
                          (ii) 5 members from the geographic regions 
                      referred to in clause (i), allocated according to 
                      the production in each region; and
                    (B) 4 members who are industry members, including at 
                least--
                          (i) 1 member who represents manufacturers of 
                      canola or rapeseed end products; and
                          (ii) 1 member who represents persons who 
                      commercially buy or sell canola or rapeseed.
            (4) Limitation on state residence.--There shall be no more 
        than 4 producer members of the Board from any 1 State.
            (5) Modifying board membership.--In accordance with 
        regulations approved by the Secretary, at least once each 3 
        years and not more than once each 2 years, the Board shall 
        review the geographic distribution of canola and rapeseed 
        production throughout the United States and, if warranted, 
        recommend to the Secretary that the Secretary--
                    (A) reapportion regions in order to reflect the 
                geographic distribution of canola and rapeseed 
                production; and

[[Page 110 STAT. 1052]]

                    (B) reapportion the seats on the Board to reflect 
                the production in each region.
            (6) Certification of organizations.--
                    (A) In general.--For the purposes of section 536, 
                the eligibility of any State organization to represent 
                producers shall be certified by the Secretary.
                    (B) Criteria.--The Secretary shall certify any State 
                organization that the Secretary determines has a history 
                of stability and permanency and meets at least 1 of the 
                following criteria:
                          (i) Majority representation.--The total paid 
                      membership of the organization--
                                    (I) is comprised of at least a 
                                majority of canola or rapeseed 
                                producers; or
                                    (II) represents at least a majority 
                                of the canola or rapeseed producers in 
                                the State.
                          (ii) Substantial number of producers 
                      represented.--The organization represents a 
                      substantial number of producers that produce a 
                      substantial quantity of canola or rapeseed in the 
                      State.
                          (iii) Purpose.--The organization is a general 
                      farm or agricultural organization that has as a 
                      stated objective the promotion and development of 
                      the United States canola or rapeseed industry and 
                      the economic welfare of United States canola or 
                      rapeseed producers.
                    (C) Report.--The Secretary shall make a 
                certification under this paragraph on the basis of a 
                factual report submitted by the State organization.
            (7) Terms of office.--
                    (A) In general.--A member of the Board shall serve 
                for a term of 3 years, except that the members appointed 
                to the initial Board shall serve, proportionately, for 
                terms of 1, 2, and 3 years, as determined by the 
                Secretary.
                    (B) Limitation on terms.--No individual may serve 
                more than 2 consecutive 3-year terms as a member.
                    (C) Termination of terms.--Notwithstanding 
                subparagraph (B), each member shall continue to serve 
                until a successor is appointed by the Secretary.
            (8) Compensation.--A member of the Board shall serve without 
        compensation, but shall be reimbursed for necessary and 
        reasonable expenses incurred in the performance of duties for 
        and approved by the Board.

    (c) Powers and Duties of the Board.--The order shall define the 
powers and duties of the Board, which shall include the power and duty--
            (1) to administer the order in accordance with the terms and 
        conditions of the order;
            (2) to issue regulations to effectuate the terms and 
        conditions of the order;
            (3) to meet, organize, and select from among members of the 
        Board a chairperson, other officers, and committees and 
        subcommittees, as the Board determines appropriate;
            (4) to establish working committees of persons other than 
        Board members;
            (5) to employ such persons, other than Board members, as the 
        Board considers necessary, and to determine the compensation and 
        define the duties of the persons;

[[Page 110 STAT. 1053]]

            (6) to prepare and submit for the approval of the Secretary, 
        when appropriate or necessary, a recommended rate of assessment 
        under section 536, and a fiscal period budget of the anticipated 
        expenses in the administration of the order, including the 
        probable costs of all programs and projects;
            (7) to develop programs and projects, subject to subsection 
        (d);
            (8) to enter into contracts or agreements, subject to 
        subsection (e), to develop and carry out programs or projects of 
        research, promotion, industry information, and consumer 
        information;
            (9) to carry out research, promotion, industry information, 
        and consumer information projects, and to pay the costs of the 
        projects with assessments collected under section 536;
            (10) to keep minutes, books, and records that reflect the 
        actions and transactions of the Board, and promptly report 
        minutes of each Board meeting to the Secretary;
            (11) to appoint and convene, from time to time, working 
        committees comprised of producers, industry members, and the 
        public to assist in the development of research, promotion, 
        industry information, and consumer information programs for 
        canola, rapeseed, and canola and rapeseed products;
            (12) to invest, pending disbursement under a program or 
        project, funds collected through assessments authorized under 
        section 536, or funds earned from investments, only in--
                    (A) obligations of the United States or an agency of 
                the United States;
                    (B) general obligations of a State or a political 
                subdivision of a State;
                    (C) an interest-bearing account or certificate of 
                deposit of a bank that is a member of the Federal 
                Reserve System; or
                    (D) obligations fully guaranteed as to principal and 
                interest by the United States;
            (13) to receive, investigate, and report to the Secretary 
        complaints of violations of the order;
            (14) to furnish the Secretary with such information as the 
        Secretary may request;
            (15) to recommend to the Secretary amendments to the order;
            (16) to develop and recommend to the Secretary for approval 
        such regulations as may be necessary for the development and 
        execution of programs or projects, or as may otherwise be 
        necessary, to carry out the order; and
            (17) to provide the Secretary with advance notice of 
        meetings.

    (d) Programs and Budgets.--
            (1) Submission to secretary.--The order shall provide that 
        the Board shall submit to the Secretary for approval any program 
        or project of research, promotion, consumer information, or 
        industry information. No program or project shall be implemented 
        prior to approval by the Secretary.
            (2) Budgets.--The order shall require the Board, prior to 
        the beginning of each fiscal year, or as may be necessary after 
        the beginning of a fiscal year, to submit to the Secretary for 
        approval budgets of anticipated expenses and disbursements in 
        the implementation of the order, including projected costs

[[Page 110 STAT. 1054]]

        of research, promotion, consumer information, and industry 
        information programs and projects.
            (3) Incurring expenses.--The Board may incur such expenses 
        for programs or projects of research, promotion, consumer 
        information, or industry information, and other expenses for the 
        administration, maintenance, and functioning of the Board as may 
        be authorized by the Secretary, including any implementation, 
        administrative, and referendum costs incurred by the Department.
            (4) Paying expenses.--The funds to cover the expenses 
        referred to in paragraph (3) shall be paid by the Board from 
        assessments collected under section 536 or funds borrowed 
        pursuant to paragraph (5).
            (5) Authority to borrow.--To meet the expenses referred to 
        in paragraph (3), the Board shall have the authority to borrow 
        funds, as approved by the Secretary, for capital outlays and 
        startup costs.

    (e) Contracts and Agreements.--
            (1) In general.--To ensure efficient use of funds, the order 
        shall provide that the Board may enter into a contract or 
        agreement for the implementation and carrying out of a program 
        or project of canola, rapeseed, or canola or rapeseed products 
        research, promotion, consumer information, or industry 
        information, including a contract with a producer organization, 
        and for the payment of the costs with funds received by the 
        Board under the order.
            (2) Requirements.--A contract or agreement under paragraph 
        (1) shall provide that--
                    (A) the contracting party shall develop and submit 
                to the Board a program or project together with a budget 
                that shall show the estimated costs to be incurred for 
                the program or project;
                    (B) <<NOTE: Effective date.>>  the program or 
                project shall become effective on the approval of the 
                Secretary; and
                    (C) <<NOTE: Records. Reports.>>  the contracting 
                party shall keep accurate records of all transactions, 
                account for funds received and expended, make periodic 
                reports to the Board of activities conducted, and make 
                such other reports as the Board or the Secretary may 
                require.
            (3) Producer organizations.--The order shall provide that 
        the Board may contract with a producer organization for any 
        services required in addition to the services described in 
        paragraph (1). The contract shall include provisions comparable 
        to the provisions required by paragraph (2).

    (f) Books and Records of the Board.--
            (1) In general.--The order shall require the Board to--
                    (A) maintain such books and records (which shall be 
                available to the Secretary for inspection and audit) as 
                the Secretary may prescribe;
                    (B) <<NOTE: Reports.>>  prepare and submit to the 
                Secretary, from time to time, such reports as the 
                Secretary may prescribe; and
                    (C) account for the receipt and disbursement of all 
                funds entrusted to the Board.
            (2) <<NOTE: Reports.>>  Audits.--The Board shall cause the 
        books and records of the Board to be audited by an independent 
        auditor at the end of each fiscal year, and a report of the 
        audit to be submitted to the Secretary.

[[Page 110 STAT. 1055]]

    (g) Prohibition.--
            (1) In general.--Subject to paragraph (2), the Board shall 
        not engage in any action to, nor shall any funds received by the 
        Board under this subtitle be used to--
                    (A) influence legislation or governmental action;
                    (B) engage in an action that would be a conflict of 
                interest;
                    (C) engage in advertising that is false or 
                misleading; or
                    (D) engage in promotion that would disparage other 
                commodities.
            (2) Action permitted.--Paragraph (1) does not preclude--
                    (A) the development and recommendation of amendments 
                to the order;
                    (B) the communication to appropriate government 
                officials of information relating to the conduct, 
                implementation, or results of promotion, research, 
                consumer information, or industry information activities 
                under the order; or
                    (C) any action designed to market canola or rapeseed 
                products directly to a foreign government or political 
                subdivision of a foreign government.

    (h) Books and Records.--
            (1) In general.--The order shall require that each producer, 
        first purchaser, or industry member shall--
                    (A) maintain and submit to the Board any reports 
                considered necessary by the Secretary to ensure 
                compliance with this subtitle; and
                    (B) make available during normal business hours, for 
                inspection by employees of the Board or Secretary, such 
                books and records as are necessary to carry out this 
                subtitle, including such records as are necessary to 
                verify any required reports.
            (2) Confidentiality.--
                    (A) In general.--Except as otherwise provided in 
                this subtitle, all information obtained from books, 
                records, or reports required to be maintained under 
                paragraph (1) shall be kept confidential, and shall not 
                be disclosed to the public by any person.
                    (B) Disclosure.--Information referred to in 
                subparagraph (A) may be disclosed to the public if--
                          (i) the Secretary considers the information 
                      relevant;
                          (ii) the information is revealed in a suit or 
                      administrative hearing brought at the direction or 
                      on the request of the Secretary or to which the 
                      Secretary or any officer of the Department is a 
                      party; and
                          (iii) the information relates to this 
                      subtitle.
                    (C) Misconduct.--A knowing disclosure of 
                confidential information in violation of subparagraph 
                (A) by an officer or employee of the Board or 
                Department, except as required by other law or allowed 
                under subparagraph (B) or (D), shall be considered a 
                violation of this subtitle.
                    (D) General statements.--Nothing in this paragraph 
                prohibits--
                          (i) the issuance of general statements based 
                      on the reports of a number of persons subject to 
                      an order

[[Page 110 STAT. 1056]]

                      or statistical data collected from the reports, if 
                      the statements do not identify the information 
                      furnished by any person; or
                          (ii) the publication, by direction of the 
                      Secretary, of the name of a person violating the 
                      order, together with a statement of the particular 
                      provisions of the order violated by the person.
            (3) Availability of information for law enforcement.--
        Information obtained under this subtitle may be made available 
        to another agency of the Federal Government for a civil or 
        criminal law enforcement activity if the activity is authorized 
        by law and if the head of the agency has made a written request 
        to the Secretary specifying the particular information desired 
        and the law enforcement activity for which the information is 
        sought.
            (4) Penalty.--Any person knowingly violating this 
        subsection, on conviction, shall be subject to a fine of not 
        more than $1,000 or to imprisonment for not more than 1 year, or 
        both, and if an officer or employee of the Board or the 
        Department, shall be removed from office or terminated from 
        employment, as applicable.
            (5) Withholding of information.--Nothing in this subtitle 
        authorizes the withholding of information from Congress.

    (i) Use of Assessments.--The order shall provide that the 
assessments collected under section 536 shall be used for payment of the 
expenses in implementing and administering this subtitle, with provision 
for a reasonable reserve, and to cover administrative costs incurred by 
the Secretary in implementing and administering this subtitle.
    (j) Other Terms and Conditions.--The order shall contain such other 
terms and conditions, not inconsistent with this subtitle, as are 
determined necessary by the Secretary to effectuate this subtitle.

SEC. 536. <<NOTE: 7 USC 7445.>>  ASSESSMENTS.

    (a) In General.--
            (1) First purchasers.--During the effective period of an 
        order issued pursuant to this subtitle, assessments shall be--
                    (A) levied on all canola or rapeseed produced in the 
                United States and marketed; and
                    (B) deducted from the payment made to a producer for 
                all canola or rapeseed sold to a first purchaser.
            (2) Direct processing.--The order shall provide that any 
        person processing canola or rapeseed of that person's own 
        production and marketing the canola or rapeseed, or canola or 
        rapeseed products, shall remit to the Board or a State 
        organization certified to represent producers under section 
        535(b)(6), in the manner prescribed by the order, an assessment 
        established at a rate equivalent to the rate provided for under 
        subsection (d).

    (b) Limitation on Assessments.--No more than 1 assessment may be 
assessed under subsection (a) on any canola or rapeseed produced (as 
remitted by a first purchaser).
    (c) Remitting of Assessments.--
            (1) In general.--Assessments required under subsection (a) 
        shall be remitted to the Board by a first purchaser. The Board 
        shall use State organizations certified to represent

[[Page 110 STAT. 1057]]

        producers under section 535(b)(6) to collect the assessments. If 
        an appropriate certified State organization does not exist to 
        collect an assessment, the assessment shall be collected by the 
        Board. There shall be only 1 certified State organization in 
        each State.
            (2) Times to remit assessment.--Each first purchaser shall 
        remit the assessment to the Board as provided for in the order.

    (d) Assessment Rate.--
            (1) Initial rate.--The initial assessment rate shall be 4 
        cents per hundredweight of canola or rapeseed produced and 
        marketed.
            (2) Increase.--The assessment rate may be increased on 
        recommendation by the Board to a rate not exceeding 10 cents per 
        hundredweight of canola or rapeseed produced and marketed in a 
        State, unless--
                    (A) after the initial referendum is held under 
                section 537(a), the Board recommends an increase above 
                10 cents per hundredweight; and
                    (B) the increase is approved in a referendum under 
                section 537(b).
            (3) Credit.--A producer who demonstrates to the Board that 
        the producer is participating in a program of a State 
        organization certified to represent producers under section 
        535(b)(6) shall receive credit, in determining the assessment 
        due from the producer, for contributions to the program of up to 
        2 cents per hundredweight of canola or rapeseed marketed.

    (e) Late Payment Charge.--
            (1) In general.--There shall be a late payment charge 
        imposed on any person who fails to remit, on or before the date 
        provided for in the order, to the Board the total amount for 
        which the person is liable.
            (2) Amount of charge.--The amount of the late payment charge 
        imposed under paragraph (1) shall be prescribed by the Board 
        with the approval of the Secretary.

    (f) Refund of Assessments From Escrow Account.--
            (1) Establishment of escrow account.--During the period 
        beginning on the date on which an order is first issued under 
        section 534(b)(3) and ending on the date on which a referendum 
        is conducted under section 537(a), the Board shall--
                    (A) establish and maintain an escrow account to be 
                used for assessment refunds; and
                    (B) place funds in the account in accordance with 
                paragraph (2).
            (2) Placement of funds in account.--The Board shall place in 
        the account, from assessments collected during the period 
        referred to in paragraph (1), an amount equal to the product 
        obtained by multiplying the total amount of assessments 
        collected during the period by 10 percent.
            (3) Right to receive refund.--The Board shall refund to a 
        producer the assessments paid by or on behalf of the producer 
        if--
                    (A) the producer is required to pay the assessment;
                    (B) the producer does not support the program 
                established under this subtitle; and

[[Page 110 STAT. 1058]]

                    (C) the producer demands the refund prior to the 
                conduct of the referendum under section 537(a).
            (4) Form of demand.--The demand shall be made in accordance 
        with such regulations, in such form, and within such time period 
        as prescribed by the Board.
            (5) Making of refund.--The refund shall be made on 
        submission of proof satisfactory to the Board that the producer 
        paid the assessment for which the refund is demanded.
            (6) Proration.--If--
                    (A) the amount in the escrow account required by 
                paragraph (1) is not sufficient to refund the total 
                amount of assessments demanded by eligible producers; 
                and
                    (B) the order is not approved pursuant to the 
                referendum conducted under section 537(a);
        the Board shall prorate the amount of the refunds among all 
        eligible producers who demand a refund.
            (7) Program approved.--If the plan is approved pursuant to 
        the referendum conducted under section 537(a), all funds in the 
        escrow account shall be returned to the Board for use by the 
        Board in accordance with this subtitle.

SEC. 537. <<NOTE: 7 USC 7446.>>  REFERENDA.

    (a) Initial Referendum.--
            (1) Requirement.--During the period ending 30 months after 
        the date on which an order is first issued under section 
        534(b)(3), the Secretary shall conduct a referendum among 
        producers who, during a representative period as determined by 
        the Secretary, have been engaged in the production of canola or 
        rapeseed for the purpose of ascertaining whether the order then 
        in effect shall be continued.
            (2) Advance notice.--The Secretary shall, to the extent 
        practicable, provide broad public notice in advance of any 
        referendum. The notice shall be provided, without advertising 
        expenses, by means of newspapers, county newsletters, the 
        electronic media, and press releases, through the use of notices 
        posted in State and county Cooperative State Research, 
        Education, and Extension Service offices and county Consolidated 
        Farm Service Agency offices, and by other appropriate means 
        specified in the order. The notice shall contain information on 
        when the referendum will be held, registration and voting 
        requirements, rules regarding absentee voting, and other 
        pertinent information.
            (3) Approval of order.--The order shall be continued only if 
        the Secretary determines that the order has been approved by not 
        less than a majority of the producers voting in the referendum.
            (4) <<NOTE: Termination date.>>  Disapproval of order.--If 
        continuation of the order is not approved by a majority of the 
        producers voting in the referendum, the Secretary shall 
        terminate collection of assessments under the order within 180 
        days after the referendum and shall terminate the order in an 
        orderly manner as soon as practicable.

    (b) Additional Referenda.--
            (1) In general.--
                    (A) Requirement.--After the initial referendum on an 
                order, the Secretary shall conduct additional referenda, 
                as described in subparagraph (C), if requested by a rep

[[Page 110 STAT. 1059]]

                resentative group of producers, as described in 
                subparagraph (B).
                    (B) Representative group of producers.--An 
                additional referendum on an order shall be conducted if 
                requested by 10 percent or more of the producers who, 
                during a representative period as determined by the 
                Secretary, have been engaged in the production of canola 
                or rapeseed.
                    (C) Eligible producers.--Each additional referendum 
                shall be conducted among all producers who, during a 
                representative period as determined by the Secretary, 
                have been engaged in the production of canola or 
                rapeseed to determine whether the producers favor the 
                termination or suspension of the order.
            (2) <<NOTE: Termination date.>>  Disapproval of order.--If 
        the Secretary determines, in a referendum conducted under 
        paragraph (1), that suspension or termination of the order is 
        favored by a majority of the producers voting in the referendum, 
        the Secretary shall suspend or terminate, as appropriate, 
        collection of assessments under the order within 180 days after 
        the determination, and shall suspend or terminate the order, as 
        appropriate, in an orderly manner as soon as practicable after 
        the determination.
            (3) Opportunity to request additional referenda.--
                    (A) In general.--Beginning on the date that is 5 
                years after the conduct of a referendum under this 
                subtitle, and every 5 years thereafter, the Secretary 
                shall provide canola and rapeseed producers an 
                opportunity to request an additional referendum.
                    (B) Method of making request.--
                          (i) In-person requests.--To carry out 
                      subparagraph (A), the Secretary shall establish a 
                      procedure under which a producer may make a 
                      request for a reconfirmation referendum in person 
                      at a county Cooperative State Research, Education, 
                      and Extension Service office or a county 
                      Consolidated Farm Service Agency office during a 
                      period established by the Secretary, or as 
                      provided in clause (ii).
                          (ii) Mail-in requests.--In lieu of making a 
                      request in person, a producer may make a request 
                      by mail. To facilitate the submission of requests 
                      by mail, the Secretary may make mail-in request 
                      forms available to producers.
                    (C) <<NOTE: Federal Register, publication.>>  
                Notifications.--The Secretary shall publish a notice in 
                the Federal Register, and the Board shall provide 
                written notification to producers, not later than 60 
                days prior to the end of the period established under 
                subparagraph (B)(i) for an in-person request, of the 
                opportunity of producers to request an additional 
                referendum. The notification shall explain the right of 
                producers to an additional referendum, the procedure for 
                a referendum, the purpose of a referendum, and the date 
                and method by which producers may act to request an 
                additional referendum under this paragraph. The 
                Secretary shall take such other action as the Secretary 
                determines is necessary to ensure that producers are 
                made aware of the opportunity to request an additional 
                referendum.

[[Page 110 STAT. 1060]]

                    (D) Action by secretary.--As soon as practicable 
                following the submission of a request for an additional 
                referendum, the Secretary shall determine whether a 
                sufficient number of producers have requested the 
                referendum, and take such steps as are necessary to 
                conduct the referendum, as required under paragraph (1).
                    (E) Time limit.--An additional referendum requested 
                under the procedures provided in this paragraph shall be 
                conducted not later than 1 year after the Secretary 
                determines that a representative group of producers, as 
                described in paragraph (1)(B), have requested the 
                conduct of the referendum.

    (c) Procedures.--
            (1) Reimbursement of secretary.--The Secretary shall be 
        reimbursed from assessments collected by the Board for any 
        expenses incurred by the Secretary in connection with the 
        conduct of an activity required under this section.
            (2) Date.--Each referendum shall be conducted for a 
        reasonable period of time not to exceed 3 days, established by 
        the Secretary, under a procedure under which producers intending 
        to vote in the referendum shall certify that the producers were 
        engaged in the production of canola, rapeseed, or canola or 
        rapeseed products during the representative period and, at the 
        same time, shall be provided an opportunity to vote in the 
        referendum.
            (3) Place.--Referenda under this section shall be conducted 
        at locations determined by the Secretary. On request, absentee 
        mail ballots shall be furnished by the Secretary in a manner 
        prescribed by the Secretary.

SEC. 538. <<NOTE: 7 USC 7447.>>  PETITION AND REVIEW.

    (a) Petition.--
            (1) In general.--A person subject to an order issued under 
        this subtitle may file with the Secretary a petition--
                    (A) stating that the order, a provision of the 
                order, or an obligation imposed in connection with the 
                order is not established in accordance with law; and
                    (B) requesting a modification of the order or an 
                exemption from the order.
            (2) Hearings.--The petitioner shall be given the opportunity 
        for a hearing on a petition filed under paragraph (1), in 
        accordance with regulations issued by the Secretary.
            (3) Ruling.--After a hearing under paragraph (2), the 
        Secretary shall issue a ruling on the petition that is the 
        subject of the hearing, which shall be final if the ruling is in 
        accordance with applicable law.
            (4) Limitation on petition.--Any petition filed under this 
        subtitle challenging an order, or any obligation imposed in 
        connection with an order, shall be filed not later than 2 years 
        after the effective date of the order or imposition of the 
        obligation.

    (b) Review.--
            (1) <<NOTE: Courts.>>  Commencement of action.--The district 
        court of the United States for any district in which the person 
        who is a petitioner under subsection (a) resides or carries on 
        business shall have jurisdiction to review a ruling on the 
        petition, if a complaint is filed by the person not later than 
        20 days

[[Page 110 STAT. 1061]]

        after the date of the entry of a ruling by the Secretary under 
        subsection (a)(3).
            (2) Process.--Service of process in a proceeding under 
        paragraph (1) shall be conducted in accordance with the Federal 
        Rules of Civil Procedure.
            (3) Remands.--If the court determines, under paragraph (1), 
        that a ruling issued under subsection (a)(3) is not in 
        accordance with applicable law, the court shall remand the 
        matter to the Secretary with directions either--
                    (A) to make such ruling as the court shall determine 
                to be in accordance with law; or
                    (B) to take such further proceedings as, in the 
                opinion of the court, the law requires.
            (4) Enforcement.--The pendency of proceedings instituted 
        under subsection (a) shall not impede, hinder, or delay the 
        Attorney General or the Secretary from taking any action under 
        section 539.

SEC. 539. <<NOTE: Courts. 7 USC 7448.>>  ENFORCEMENT.

    (a) Jurisdiction.--The district courts of the United States are 
vested with jurisdiction specifically to enforce, and to prevent and 
restrain any person from violating, an order or regulation made or 
issued under this subtitle.
    (b) Referral to Attorney General.--A civil action authorized to be 
commenced under this section shall be referred to the Attorney General 
for appropriate action, except that the Secretary shall not be required 
to refer to the Attorney General a violation of this subtitle if the 
Secretary believes that the administration and enforcement of this 
subtitle would be adequately served by providing a suitable written 
notice or warning to the person committing the violation or by 
administrative action under subsection (c).
    (c) Civil Penalties and Orders.--
            (1) Civil penalties.--
                    (A) In general.--Any person who willfully violates 
                any provision of an order or regulation issued by the 
                Secretary under this subtitle, or who fails or refuses 
                to pay, collect, or remit an assessment or fee required 
                of the person under an order or regulation, may be 
                assessed--
                          (i) a civil penalty by the Secretary of not 
                      more than $1,000 for each violation; and
                          (ii) in the case of a willful failure to pay, 
                      collect, or remit an assessment as required by an 
                      order or regulation, an additional penalty equal 
                      to the amount of the assessment.
                    (B) Separate offense.--Each violation under 
                subparagraph (A) shall be a separate offense.
            (2) Cease-and-desist orders.--In addition to, or in lieu of, 
        a civil penalty under paragraph (1), the Secretary may issue an 
        order requiring a person to cease and desist from continuing a 
        violation.
            (3) Notice and hearing.--No penalty shall be assessed, or 
        cease-and-desist order issued, by the Secretary under this 
        subsection unless the person against whom the penalty is 
        assessed or the cease-and-desist order is issued is given notice 
        and opportunity for a hearing before the Secretary with respect 
        to the violation.

[[Page 110 STAT. 1062]]

            (4) Finality.--The order of the Secretary assessing a 
        penalty or imposing a cease-and-desist order under this 
        subsection shall be final and conclusive unless the affected 
        person files an appeal of the order in the appropriate district 
        court of the United States in accordance with subsection (d).

    (d) Review by District Court.--
            (1) Commencement of action.--Any person who has been 
        determined to be in violation of this subtitle, or against whom 
        a civil penalty has been assessed or a cease-and-desist order 
        issued under subsection (c), may obtain review of the penalty or 
        cease-and-desist order by--
                    (A) filing, within the 30-day period beginning on 
                the date the penalty is assessed or cease-and-desist 
                order issued, a notice of appeal in--
                          (i) the district court of the United States 
                      for the district in which the person resides or 
                      carries on business; or
                          (ii) the United States District Court for the 
                      District of Columbia; and
                    (B) simultaneously sending a copy of the notice by 
                certified mail to the Secretary.
            (2) Record.--The Secretary shall file promptly, in the 
        appropriate court referred to in paragraph (1), a certified copy 
        of the record on which the Secretary determined that the person 
        committed the violation.
            (3) Standard of review.--A finding of the Secretary under 
        this section shall be set aside only if the finding is found to 
        be unsupported by substantial evidence.

    (e) Failure To Obey Cease-and-Desist Orders.--Any person who fails 
to obey a cease-and-desist order issued under this section after the 
cease-and-desist order has become final and unappealable, or after the 
appropriate United States district court has entered a final judgment in 
favor of the Secretary, shall be subject to a civil penalty assessed by 
the Secretary, after opportunity for a hearing and for judicial review 
under the procedures specified in subsections (c) and (d), of not more 
than $5,000 for each offense. Each day during which the failure 
continues shall be considered as a separate violation of the cease-and-
desist order.
    (f) Failure To Pay Penalties.--If a person fails to pay an 
assessment of a civil penalty under this section after the assessment 
has become a final and unappealable order, or after the appropriate 
United States district court has entered final judgment in favor of the 
Secretary, the Secretary shall refer the matter to the Attorney General 
for recovery of the amount assessed in the district court of the United 
States for any district in which the person resides or carries on 
business. In an action for recovery, the validity and appropriateness of 
the final order imposing the civil penalty shall not be subject to 
review.
    (g) Additional Remedies.--The remedies provided in this subtitle 
shall be in addition to, and not exclusive of, other remedies that may 
be available.

SEC. 540. <<NOTE: 7 USC 7449.>>  INVESTIGATIONS AND POWER TO SUBPOENA.

    (a) Investigations.--The Secretary may make such investigations as 
the Secretary considers necessary--
            (1) for the effective administration of this subtitle; and

[[Page 110 STAT. 1063]]

            (2) to determine whether any person has engaged or is 
        engaging in an act that constitutes a violation of this 
        subtitle, or an order, rule, or regulation issued under this 
        subtitle.

    (b) Subpoenas, Oaths, and Affirmations.--
            (1) In general.--For the purpose of an investigation under 
        subsection (a), the Secretary may administer oaths and 
        affirmations, subpoena witnesses, take evidence, and issue 
        subpoenas to require the production of any records that are 
        relevant to the inquiry. The attendance of witnesses and the 
        production of records may be required from any place in the 
        United States.
            (2) Administrative hearings.--For the purpose of an 
        administrative hearing held under section 538 or 539, the 
        presiding officer is authorized to administer oaths and 
        affirmations, subpoena and compel the attendance of witnesses, 
        take evidence, and require the production of any records that 
        are relevant to the inquiry. The attendance of witnesses and the 
        production of records may be required from any place in the 
        United States.

    (c) Aid of Courts.--In the case of contumacy by, or refusal to obey 
a subpoena issued to, any person, the Secretary may invoke the aid of 
any court of the United States within the jurisdiction of which the 
investigation or proceeding is carried on, or where the person resides 
or carries on business, in order to enforce a subpoena issued by the 
Secretary under subsection (b). The court may issue an order requiring 
the person to comply with the subpoena.
    (d) Contempt.--A failure to obey an order of the court under this 
section may be punished by the court as contempt of the court.
    (e) Process.--Process may be served on a person in the judicial 
district in which the person resides or carries on business or wherever 
the person may be found.
    (f) Hearing Site.--The site of a hearing held under section 538 or 
539 shall be in the judicial district where the person affected by the 
hearing resides or has a principal place of business.

SEC. 541. <<NOTE: 7 USC 7450.>>  SUSPENSION OR TERMINATION.

    The Secretary shall, whenever the Secretary finds that an order or a 
provision of an order obstructs or does not tend to effectuate the 
declared policy of this subtitle, suspend or terminate the operation of 
the order or provision. The suspension or termination of an order shall 
not be considered an order within the meaning of this subtitle.

SEC. 542. <<NOTE: 7 USC 7451.>>  REGULATIONS.

    The Secretary may issue such regulations as are necessary to carry 
out this subtitle.

SEC. 543. <<NOTE: 7 USC 7452.>>  AUTHORIZATION OF APPROPRIATIONS.

    (a) In General.--There are authorized to be appropriated for each 
fiscal year such sums as are necessary to carry out this subtitle.
    (b) Administrative Expenses.--Funds appropriated under subsection 
(a) shall not be available for payment of the expenses or expenditures 
of the Board in administering a provision of an order issued under this 
subtitle.

[[Page 110 STAT. 1064]]

Subtitle D <<NOTE: National Kiwifruit Research, Promotion, and Consumer 
Information Act.>> --Kiwifruit

SEC. 551. <<NOTE: 7 USC 7401 note.>>  SHORT TITLE.

    This subtitle may be cited as the ``National Kiwifruit Research, 
Promotion, and Consumer Information Act''.

SEC. 552. <<NOTE: 7 USC 7461.>>  FINDINGS AND PURPOSES.

    (a) Findings.--Congress finds that--
            (1) domestically produced kiwifruit are grown by many 
        individual producers;
            (2) virtually all domestically produced kiwifruit are grown 
        in the State of California, although there is potential for 
        production in many other areas of the United States;
            (3) kiwifruit move in interstate and foreign commerce, and 
        kiwifruit that do not move in channels of commerce directly 
        burden or affect interstate commerce;
            (4) in recent years, large quantities of kiwifruit have been 
        imported into the United States;
            (5) the maintenance and expansion of existing domestic and 
        foreign markets for kiwifruit, and the development of additional 
        and improved markets for kiwifruit, are vital to the welfare of 
        kiwifruit producers and other persons concerned with producing, 
        marketing, and processing kiwifruit;
            (6) a coordinated program of research, promotion, and 
        consumer information regarding kiwifruit is necessary for the 
        maintenance and development of the markets; and
            (7) kiwifruit producers, handlers, and importers are unable 
        to implement and finance such a program without cooperative 
        action.

    (b) Purposes.--The purposes of this subtitle are--
            (1) to authorize the establishment of an orderly procedure 
        for the development and financing (through an assessment) of an 
        effective and coordinated program of research, promotion, and 
        consumer information regarding kiwifruit;
            (2) to use the program to strengthen the position of the 
        kiwifruit industry in domestic and foreign markets and maintain, 
        develop, and expand markets for kiwifruit; and
            (3) to treat domestically produced kiwifruit and imported 
        kiwifruit equitably.

SEC. 553. <<NOTE: 7 USC 7462.>>  DEFINITIONS.

    In this subtitle (unless the context otherwise requires):
            (1) Board.--The term ``Board'' means the National Kiwifruit 
        Board established under section 555.
            (2) Consumer information.--The term ``consumer information'' 
        means any action taken to provide information to, and broaden 
        the understanding of, the general public regarding the 
        consumption, use, nutritional attributes, and care of kiwifruit.
            (3) Exporter.--The term ``exporter'' means any person from 
        outside the United States who exports kiwifruit into the United 
        States.
            (4) Handler.--The term ``handler'' means any person, 
        excluding a common carrier, engaged in the business of buying 
        and selling, packing, marketing, or distributing kiwifruit as 
        specified in the order.

[[Page 110 STAT. 1065]]

            (5) Importer.--The term ``importer'' means any person who 
        imports kiwifruit into the United States.
            (6) Kiwifruit.--The term ``kiwifruit'' means all varieties 
        of fresh kiwifruit grown in or imported into the United States.
            (7) Marketing.--The term ``marketing'' means the sale or 
        other disposition of kiwifruit into interstate, foreign, or 
        intrastate commerce by buying, marketing, distribution, or 
        otherwise placing kiwifruit into commerce.
            (8) Order.--The term ``order'' means a kiwifruit research, 
        promotion, and consumer information order issued by the 
        Secretary under section 554.
            (9) Person.--The term ``person'' means any individual, group 
        of individuals, partnership, corporation, association, 
        cooperative, or other legal entity.
            (10) Processing.--The term ``processing'' means canning, 
        fermenting, distilling, extracting, preserving, grinding, 
        crushing, or in any manner changing the form of kiwifruit for 
        the purpose of preparing the kiwifruit for market or marketing 
        the kiwifruit.
            (11) Producer.--The term ``producer'' means any person who 
        grows kiwifruit in the United States for sale in commerce.
            (12) Promotion.--The term ``promotion'' means any action 
        taken under this subtitle (including paid advertising) to 
        present a favorable image of kiwifruit to the general public for 
        the purpose of improving the competitive position of kiwifruit 
        and stimulating the sale of kiwifruit.
            (13) Research.--The term ``research'' means any type of 
        research relating to the use, nutritional value, and marketing 
        of kiwifruit conducted for the purpose of advancing the image, 
        desirability, marketability, or quality of kiwifruit.
            (14) Secretary.--The term ``Secretary'' means the Secretary 
        of Agriculture.
            (15) United states.--The term ``United States'' means the 50 
        States of the United States, the District of Columbia, and the 
        Commonwealth of Puerto Rico.

SEC. 554. <<NOTE: 7 USC 7463.>>  ISSUANCE OF ORDERS.

    (a) Issuance.--To effectuate the purposes of this subtitle specified 
in section 552(b), the Secretary shall issue an order applicable to 
producers, handlers, and importers of kiwifruit. Any such order shall be 
national in scope. Not more than 1 order shall be in effect under this 
subtitle at any 1 time.
    (b) Procedure.--
            (1) Proposal for issuance of order.--Any person that will be 
        affected by this subtitle may request the issuance of, and 
        submit a proposal for, an order under this subtitle.
            (2) <<NOTE: Publication.>>  Proposed order.--Not later than 
        90 days after the receipt of a request and proposal for an 
        order, the Secretary shall publish a proposed order and give due 
        notice and opportunity for public comment on the proposed order.
            (3) Issuance of order.--After notice and opportunity for 
        public comment are provided under paragraph (2), the Secretary 
        shall issue an order, taking into consideration the comments 
        received and including in the order provisions necessary to 
        ensure that the order is in conformity with this subtitle.

[[Page 110 STAT. 1066]]

    (c) Amendments.--The Secretary may amend any order issued under this 
section. The provisions of this subtitle applicable to an order shall be 
applicable to an amendment to an order.

SEC. 555. <<NOTE: 7 USC 7464.>>  NATIONAL KIWIFRUIT BOARD.

    (a) Membership.--An order issued by the Secretary under section 554 
shall provide for the establishment of a National Kiwifruit Board that 
consists of the following 11 members:
            (1) 6 members who are producers (or representatives of 
        producers) and who are not exempt from an assessment under 
        section 556(b).
            (2) 4 members who are importers (or representatives of 
        importers) and who are not exempt from an assessment under 
        section 556(b) or are exporters (or representatives of 
        exporters).
            (3) 1 member appointed from the general public.

    (b) Adjustment of Membership.--
            (1) In general.--Subject to the 11-member limit and to 
        paragraph (2), the Secretary may adjust membership on the Board 
        to accommodate changes in production and import levels of 
        kiwifruit.
            (2) Number of producer members.--Producers shall comprise 
        not less than 51 percent of the membership of the Board.

    (c) Appointment and Nomination.--
            (1) Appointment.--The Secretary shall appoint the members of 
        the Board from nominations submitted in accordance with this 
        subsection.
            (2) Producers.--The members referred to in subsection (a)(1) 
        shall be appointed from individuals nominated by producers.
            (3) Importers and exporters.--The members referred to in 
        subsection (a)(2) shall be appointed from individuals nominated 
        by importers or exporters.
            (4) Public representative.--The public representative shall 
        be appointed from nominations submitted by other members of the 
        Board.
            (5) Failure to nominate.--If producers, importers, and 
        exporters fail to nominate individuals for appointment, the 
        Secretary may appoint members and alternates on a basis provided 
        for in the order. If the Board fails to nominate a public 
        representative, the member may be appointed by the Secretary 
        without a nomination.

    (d) Alternates.--The Secretary shall appoint an alternate for each 
member of the Board. An alternate shall--
            (1) be appointed in the same manner as the member for whom 
        the individual is an alternate; and
            (2) serve on the Board if the member is absent from a 
        meeting or is disqualified under subsection (f).

    (e) Terms.--A member of the Board shall be appointed for a term of 3 
years. No member may serve more than 2 consecutive 3-year terms, except 
that of the members first appointed--
            (1) 5 members shall be appointed for a term of 2 years; and
            (2) 6 members shall be appointed for a term of 3 years.

    (f) Disqualification.--If a member or alternate of the Board who was 
appointed as a producer, importer, exporter, or public representative 
member ceases to belong to the group for which

[[Page 110 STAT. 1067]]

the member was appointed, the member or alternate shall be disqualified 
from serving on the Board.
    (g) Compensation.--A member or alternate of the Board shall serve 
without pay.
    (h) General Powers and Duties.--The Board shall--
            (1) administer an order issued by the Secretary under 
        section 554, and an amendment to the order, in accordance with 
        the order and amendment and this subtitle;
            (2) <<NOTE: Regulations.>>  prescribe rules and regulations 
        to carry out the order;
            (3) meet, organize, and select from among members of the 
        Board a chairperson, other officers, and committees and 
        subcommittees, as the Board determines appropriate;
            (4) receive, investigate, and report to the Secretary 
        accounts of violations of the order;
            (5) make recommendations to the Secretary with respect to an 
        amendment that should be made to the order; and
            (6) employ or contract with a manager and staff to assist in 
        administering the order, except that, to reduce administrative 
        costs and increase efficiency, the Board shall seek, to the 
        extent practicable, to employ or contract with personnel who are 
        already associated with organizations involved in promoting 
        kiwifruit that are chartered by a State, the District of 
        Columbia, or the Commonwealth of Puerto Rico.

SEC. 556. <<NOTE: 7 USC 7465.>>  REQUIRED TERMS IN ORDER.

    (a) Budgets and Plans.--
            (1) In general.--An order issued under section 554 shall 
        provide for periodic budgets and plans in accordance with this 
        subsection.
            (2) Budgets.--The Board shall prepare and submit to the 
        Secretary a budget prior to the beginning of the fiscal year of 
        the anticipated expenses and disbursements of the Board in the 
        administration of the order, including probable costs of 
        research, promotion, and consumer information. A budget shall 
        become effective on a \2/3\-vote of a quorum of the Board and 
        approval by the Secretary.
            (3) Plans.--Each budget shall include a plan for research, 
        promotion, and consumer information regarding kiwifruit. A plan 
        under this paragraph shall become effective on approval by the 
        Secretary. The Board may enter into contracts and agreements, on 
        approval by the Secretary, for--
                    (A) the development and carrying out of the plan; 
                and
                    (B) the payment of the cost of the plan, with funds 
                collected pursuant to this subtitle.

    (b) Assessments.--
            (1) In general.--The order shall provide for the imposition 
        and collection of assessments with regard to the production and 
        importation of kiwifruit in accordance with this subsection.
            (2) Rate.--The assessment rate shall be the rate that is 
        recommended by a \2/3\-vote of a quorum of the Board and 
        approved by the Secretary, except that the rate shall not exceed 
        $0.10 per 7-pound tray of kiwifruit or an equivalent rate.
            (3) Collection by first handlers.--Except as provided in 
        paragraph (5), the first handler of kiwifruit shall--

[[Page 110 STAT. 1068]]

                    (A) be responsible for the collection from the 
                producer, and payment to the Board, of assessments 
                required under this subsection; and
                    (B) maintain a separate record of the kiwifruit of 
                each producer whose kiwifruit are so handled, including 
                the kiwifruit owned by the handler.
            (4) Importers.--The assessment on imported kiwifruit shall 
        be paid by the importer to the United States Customs Service at 
        the time of entry into the United States and shall be remitted 
        to the Board.
            (5) Exemption from assessment.--The following persons or 
        activities are exempt from an assessment under this subsection:
                    (A) A producer who produces less than 500 pounds of 
                kiwifruit per year.
                    (B) An importer who imports less than 10,000 pounds 
                of kiwifruit per year.
                    (C) A sale of kiwifruit made directly from the 
                producer to a consumer for a purpose other than resale.
                    (D) The production or importation of kiwifruit for 
                processing.
            (6) Claim of exemption.--To claim an exemption under 
        paragraph (5) for a particular year, a person shall--
                    (A) submit an application to the Board stating the 
                basis for the exemption and certifying that the quantity 
                of kiwifruit produced, imported, or sold by the person 
                will not exceed any poundage limitation required for the 
                exemption in the year; or
                    (B) be on a list of approved processors developed by 
                the Board.

    (c) Use of Assessments.--
            (1) Authorized uses.--The order shall provide that funds 
        paid to the Board as assessments under subsection (b) may be 
        used by the Board--
                    (A) to pay for research, promotion, and consumer 
                information described in the budget of the Board under 
                subsection (a) and for other expenses incurred by the 
                Board in the administration of an order;
                    (B) to pay such other expenses for the 
                administration, maintenance, and functioning of the 
                Board (including any enforcement efforts for the 
                collection of assessments) as may be authorized by the 
                Secretary, including interest and penalties for late 
                payments; and
                    (C) to fund a reserve established under section 
                557(d).
            (2) Required uses.--The order shall provide that funds paid 
        to the Board as assessments under subsection (b) shall be used 
        by the Board--
                    (A) to pay the expenses incurred by the Secretary, 
                including salaries and expenses of Federal Government 
                employees, in implementing and administering the order; 
                and
                    (B) to reimburse the Secretary for any expenses 
                incurred by the Secretary in conducting referenda under 
                this subtitle.
            (3) Limitation on use of assessments.--Except for the first 
        year of operation of the Board, expenses for the administra

[[Page 110 STAT. 1069]]

        tion, maintenance, and functioning of the Board may not exceed 
        30 percent of the budget for a year.

    (d) False Claims.--The order shall provide that any promotion funded 
with assessments collected under subsection (b) may not make--
            (1) any false claims on behalf of kiwifruit; and
            (2) any false statements with respect to the attributes or 
        use of any product that competes with kiwifruit for sale in 
        commerce.

    (e) Prohibition on Use of Funds.--The order shall provide that funds 
collected by the Board under this subtitle through assessments may not, 
in any manner, be used for the purpose of influencing legislation or 
governmental policy or action, except for making recommendations to the 
Secretary as provided for under this subtitle.
    (f) Books, Records, and Reports.--
            (1) Board.--The order shall require the Board--
                    (A) to maintain books and records with respect to 
                the receipt and disbursement of funds received by the 
                Board;
                    (B) to submit to the Secretary from time to time 
                such reports as the Secretary may require for 
                appropriate accounting; and
                    (C) to submit to the Secretary at the end of each 
                fiscal year a complete audit report by an independent 
                auditor regarding the activities of the Board during the 
                fiscal year.
            (2) Others.--To make information and data available to the 
        Board and the Secretary that is appropriate or necessary for the 
        effectuation, administration, or enforcement of this subtitle 
        (or any order or regulation issued under this subtitle), the 
        order shall require handlers and importers who are responsible 
        for the collection, payment, or remittance of assessments under 
        subsection (b)--
                    (A) to maintain and make available for inspection by 
                the employees and agents of the Board and the Secretary 
                such books and records as may be required by the order; 
                and
                    (B) to file, at the times and in the manner and 
                content prescribed by the order, reports regarding the 
                collection, payment, or remittance of the assessments.

    (g) Confidentiality.--
            (1) In general.--The order shall require that all 
        information obtained pursuant to subsection (f)(2) be kept 
        confidential by all officers, employees, and agents of the 
        Department of Agriculture and of the Board. Only such 
        information as the Secretary considers relevant shall be 
        disclosed to the public and only in a suit or administrative 
        hearing, brought at the request of the Secretary or to which the 
        Secretary or any officer of the United States is a party, 
        involving the order with respect to which the information was 
        furnished or acquired.
            (2) Limitations.--Nothing in this subsection prohibits--
                    (A) the issuance of general statements based on the 
                reports of a number of handlers and importers subject to 
                an order, if the statements do not identify the 
                information furnished by any person; or

[[Page 110 STAT. 1070]]

                    (B) the publication, by direction of the Secretary, 
                of the name of any person violating an order issued 
                under section 554(a), together with a statement of the 
                particular provisions of the order violated by the 
                person.
            (3) Penalty.--Any person who willfully violates this 
        subsection, on conviction, shall be subject to a fine of not 
        more than $1,000 or to imprisonment for not more than 1 year, or 
        both, and, if the person is a member, officer, or agent of the 
        Board or an employee of the Department of Agriculture, shall be 
        removed from office.

    (h) Withholding of Information.--Nothing in this subtitle authorizes 
the withholding of information from Congress.

SEC. 557. <<NOTE: 7 USC 7466.>>  PERMISSIVE TERMS IN ORDER.

    (a) Permissive Terms.--On the recommendation of the Board and with 
the approval of the Secretary, an order issued under section 554 may 
include the terms and conditions specified in this section and such 
additional terms and conditions as the Secretary considers necessary to 
effectuate the other provisions of the order and are incidental to, and 
not inconsistent with, this subtitle.
    (b) Alternative Payment and Reporting Schedules.--The order may 
authorize the Board to designate different handler payment and reporting 
schedules to recognize differences in marketing practices and 
procedures.
    (c) Working Groups.--The order may authorize the Board to convene 
working groups drawn from producers, handlers, importers, exporters, or 
the general public and utilize the expertise of the groups to assist in 
the development of research and marketing programs for kiwifruit.
    (d) Reserve Funds.--The order may authorize the Board to accumulate 
reserve funds from assessments collected pursuant to section 556(b) to 
permit an effective and continuous coordinated program of research, 
promotion, and consumer information in years in which production and 
assessment income may be reduced, except that any reserve fund may not 
exceed the amount budgeted for operation of this subtitle for 1 year.
    (e) Promotion Activities Outside United States.--The order may 
authorize the Board to use, with the approval of the Secretary, funds 
collected under section 556(b) and funds from other sources for the 
development and expansion of sales in foreign markets of kiwifruit 
produced in the United States.

SEC. 558. <<NOTE: 7 USC 7467.>>  PETITION AND REVIEW.

    (a) Petition.--
            (1) In general.--A person subject to an order may file with 
        the Secretary a petition--
                    (A) stating that the order, a provision of the 
                order, or an obligation imposed in connection with the 
                order is not in accordance with law; and
                    (B) requesting a modification of the order or an 
                exemption from the order.
            (2) Hearings.--A person submitting a petition under 
        paragraph (1) shall be given an opportunity for a hearing on the 
        petition, in accordance with regulations issued by the 
        Secretary.
            (3) Ruling.--After the hearing, the Secretary shall issue a 
        ruling on the petition which shall be final if the petition is 
        in accordance with law.

[[Page 110 STAT. 1071]]

            (4) Limitation on petition.--Any petition filed under this 
        subtitle challenging an order, or any obligation imposed in 
        connection with an order, shall be filed not later than 2 years 
        after the effective date of the order or imposition of the 
        obligation.

    (b) <<NOTE: Courts.>>  Review.--
            (1) Commencement of action.--The district court of the 
        United States for any district in which the person who is a 
        petitioner under subsection (a) resides or carries on business 
        is vested with jurisdiction to review the ruling on the petition 
        of the person, if a complaint for that purpose is filed not 
        later than 20 days after the date of the entry of a ruling by 
        the Secretary under subsection (a).
            (2) Process.--Service of process in the proceedings shall be 
        conducted in accordance with the Federal Rules of Civil 
        Procedure.
            (3) Remands.--If the court determines that the ruling is not 
        in accordance with law, the court shall remand the matter to the 
        Secretary with directions--
                    (A) to make such ruling as the court shall determine 
                to be in accordance with law; or
                    (B) to take such further action as, in the opinion 
                of the court, the law requires.
            (4) Enforcement.--The pendency of a proceeding instituted 
        pursuant to subsection (a) shall not impede, hinder, or delay 
        the Attorney General or the Secretary from obtaining relief 
        pursuant to section 559.

SEC. 559. <<NOTE: Courts. 7 USC 7468.>>  ENFORCEMENT.

    (a) Jurisdiction.--A district court of the United States shall have 
jurisdiction specifically to enforce, and to prevent and restrain any 
person from violating, any order or regulation made or issued by the 
Secretary under this subtitle.
    (b) Referral to Attorney General.--A civil action authorized to be 
brought under this section shall be referred to the Attorney General for 
appropriate action, except that the Secretary is not required to refer 
to the Attorney General a violation of this subtitle, or any order or 
regulation issued under this subtitle, if the Secretary believes that 
the administration and enforcement of this subtitle would be adequately 
served by administrative action under subsection (c) or suitable written 
notice or warning to the person committing the violation.
    (c) Civil Penalties and Orders.--
            (1) Civil penalties.--Any person who willfully violates any 
        provision of any order or regulation issued by the Secretary 
        under this subtitle, or who fails or refuses to pay, collect, or 
        remit any assessment or fee duly required of the person under 
        the order or regulation, may be assessed a civil penalty by the 
        Secretary of not less than $500 nor more than $5,000 for each 
        such violation. Each violation shall be a separate offense.
            (2) Cease-and-desist orders.--In addition to or in lieu of 
        the civil penalty, the Secretary may issue an order requiring 
        the person to cease and desist from continuing the violation.
            (3) Notice and hearing.--No order assessing a civil penalty 
        or cease-and-desist order may be issued by the Secretary under 
        this subsection unless the Secretary gives the person

[[Page 110 STAT. 1072]]

        against whom the order is issued notice and opportunity for a 
        hearing on the record before the Secretary with respect to the 
        violation.
            (4) Finality.--The order of the Secretary assessing a 
        penalty or imposing a cease-and-desist order shall be final and 
        conclusive unless the person against whom the order is issued 
        files an appeal of the order in the appropriate district court 
        of the United States, in accordance with subsection (d).

    (d) Review by United States District Court.--
            (1) Commencement of action.--Any person against whom a 
        violation is found and a civil penalty assessed or cease-and-
        desist order issued under subsection (c) may obtain review of 
        the penalty or cease-and-desist order in the district court of 
        the United States for the district in which the person resides 
        or carries on business, or the United States District Court for 
        the District of Columbia, by--
                    (A) filing a notice of appeal in the court not later 
                than 30 days after the date on which the penalty is 
                assessed or cease-and-desist order issued; and
                    (B) simultaneously sending a copy of the notice by 
                certified mail to the Secretary.
            (2) Record.--The Secretary shall promptly file in the court 
        a certified copy of the record on which the Secretary found that 
        the person committed the violation.
            (3) Standard of review.--A finding of the Secretary shall be 
        set aside only if the finding is found to be unsupported by 
        substantial evidence.

    (e) Failure To Obey Cease-and-Desist Orders.--Any person who fails 
to obey a cease-and-desist order issued by the Secretary after the 
cease-and-desist order has become final and unappealable, or after the 
appropriate United States district court has entered a final judgment in 
favor of the Secretary, shall be subject to a civil penalty assessed by 
the Secretary, after opportunity for a hearing and for judicial review 
under the procedures specified in subsections (c) and (d), of not more 
than $500 for each offense. Each day during which the failure continues 
shall be considered a separate violation of the cease-and-desist order.
    (f) Failure To Pay Penalties.--If a person fails to pay an 
assessment of a civil penalty after the assessment has become a final 
and unappealable order issued by the Secretary, or after the appropriate 
United States district court has entered final judgment in favor of the 
Secretary, the Secretary shall refer the matter to the Attorney General 
for recovery of the amount assessed in the district court of the United 
States for any district in which the person resides or carries on 
business. In an action for recovery, the validity and appropriateness of 
the final order imposing the civil penalty shall not be subject to 
review.

SEC. 560. <<NOTE: 7 USC 7469.>>  INVESTIGATIONS AND POWER TO SUBPOENA.

    (a) In General.--The Secretary may make such investigations as the 
Secretary considers necessary--
            (1) for the effective carrying out of the responsibilities 
        of the Secretary under this subtitle; or
            (2) to determine whether a person subject to this subtitle 
        has engaged or is engaging in any act that constitutes a 
        violation of this subtitle, or any order, rule, or regulation 
        issued under this subtitle.

[[Page 110 STAT. 1073]]

    (b) Power to Subpoena.--
            (1) Investigations.--For the purpose of an investigation 
        made under subsection (a), the Secretary may administer oaths 
        and affirmations and may issue subpoenas to require the 
        production of any records that are relevant to the inquiry. The 
        production of any such records may be required from any place in 
        the United States.
            (2) Administrative hearings.--For the purpose of an 
        administrative hearing held under section 558 or 559, the 
        presiding officer is authorized to administer oaths and 
        affirmations, subpoena witnesses, compel the attendance of 
        witnesses, take evidence, and require the production of any 
        records that are relevant to the inquiry. The attendance of 
        witnesses and the production of any such records may be required 
        from any place in the United States.

    (c) Aid of Courts.--In the case of contumacy by, or refusal to obey 
a subpoena to, any person, the Secretary may invoke the aid of any court 
of the United States within the jurisdiction of which the investigation 
or proceeding is carried on, or where the person resides or carries on 
business, to enforce a subpoena issued by the Secretary under subsection 
(b). The court may issue an order requiring the person to comply with 
the subpoena.
    (d) Contempt.--Any failure to obey the order of the court may be 
punished by the court as a contempt of the court.
    (e) Process.--Process in any such case may be served in the judicial 
district in which the person resides or carries on business or wherever 
the person may be found.
    (f) Hearing Site.--The site of any hearing held under section 558 or 
559 shall be in the judicial district where the person affected by the 
hearing resides or has a principal place of business.

SEC. 561. <<NOTE: 7 USC 7470.>>  REFERENDA.

    (a) Initial Referendum.--
            (1) Referendum required.--During the 60-day period 
        immediately preceding the proposed effective date of an order 
        issued under section 554, the Secretary shall conduct a 
        referendum among kiwifruit producers and importers who will be 
        subject to assessments under the order, to ascertain whether 
        producers and importers approve the implementation of the order.
            (2) Approval of order.--The order shall become effective, as 
        provided in section 554, if the Secretary determines that--
                    (A) the order has been approved by a majority of the 
                producers and importers voting in the referendum; and
                    (B) the producers and importers favoring approval 
                produce and import more than 50 percent of the total 
                volume of kiwifruit produced and imported by persons 
                voting in the referendum.

    (b) Subsequent Referenda.--The Secretary may periodically conduct a 
referendum to determine if kiwifruit producers and importers favor the 
continuation, termination, or suspension of any order issued under 
section 554 that is in effect at the time of the referendum.
    (c) Required Referenda.--The Secretary shall hold a referendum under 
subsection (b)--

[[Page 110 STAT. 1074]]

            (1) at the end of the 6-year period beginning on the 
        effective date of the order and at the end of each subsequent 6-
        year period;
            (2) at the request of the Board; or
            (3) if not less than 30 percent of the kiwifruit producers 
        and importers subject to assessments under the order submit a 
        petition requesting the referendum.

    (d) Vote.--On completion of a referendum under subsection (b), the 
Secretary shall suspend or terminate the order that was subject to the 
referendum at the end of the marketing year if--
            (1) the suspension or termination of the order is favored by 
        not less than a majority of the producers and importers voting 
        in the referendum; and
            (2) the producers and importers produce and import more than 
        50 percent of the total volume of kiwifruit produced and 
        imported by persons voting in the referendum.

    (e) Confidentiality.--The ballots and other information or reports 
that reveal, or tend to reveal, the vote of any person under this 
subtitle and the voting list shall be held strictly confidential and 
shall not be disclosed.

SEC. 562. <<NOTE: 7 USC 7471.>>  SUSPENSION OR TERMINATION.

    (a) In General.--If the Secretary finds that an order issued under 
section 554, or a provision of the order, obstructs or does not tend to 
effectuate the purposes of this subtitle, the Secretary shall suspend or 
terminate the operation of the order or provision.
    (b) Limitation.--The suspension or termination of any order, or any 
provision of an order, shall not be considered an order under this 
subtitle.

SEC. 563. <<NOTE: 7 USC 7472.>>  REGULATIONS.

    The Secretary may issue such regulations as are necessary to carry 
out this subtitle.

SEC. 564. <<NOTE: 7 USC 7473.>>  AUTHORIZATION OF APPROPRIATIONS.

    There are authorized to be appropriated for each fiscal year such 
sums as are necessary to carry out this subtitle.

 Subtitle <<NOTE: Popcorn Promotion, Research, and Consumer Information 
Act.>>  E--Popcorn

SEC. 571. <<NOTE: 7 USC 7401 note.>>  SHORT TITLE.

    This subtitle may be cited as the ``Popcorn Promotion, Research, and 
Consumer Information Act''.

SEC. 572. <<NOTE: 7 USC 7481.>>  FINDINGS AND DECLARATION OF POLICY.

    (a) Findings.--Congress finds that--
            (1) popcorn is an important food that is a valuable part of 
        the human diet;
            (2) the production and processing of popcorn plays a 
        significant role in the economy of the United States in that 
        popcorn is processed by several popcorn processors, distributed 
        through wholesale and retail outlets, and consumed by millions 
        of people throughout the United States and foreign countries;
            (3) popcorn must be of high quality, readily available, 
        handled properly, and marketed efficiently to ensure that the 
        benefits of popcorn are available to the people of the United 
        States;

[[Page 110 STAT. 1075]]

            (4) the maintenance and expansion of existing markets and 
        uses and the development of new markets and uses for popcorn are 
        vital to the welfare of processors and persons concerned with 
        marketing, using, and producing popcorn for the market, as well 
        as to the agricultural economy of the United States;
            (5) the cooperative development, financing, and 
        implementation of a coordinated program of popcorn promotion, 
        research, consumer information, and industry information is 
        necessary to maintain and expand markets for popcorn; and
            (6) popcorn moves in interstate and foreign commerce, and 
        popcorn that does not move in those channels of commerce 
        directly burdens or affects interstate commerce in popcorn.

    (b) Policy.--It is the policy of Congress that it is in the public 
interest to authorize the establishment, through the exercise of the 
powers provided in this subtitle, of an orderly procedure for 
developing, financing (through adequate assessments on unpopped popcorn 
processed domestically), and carrying out an effective, continuous, and 
coordinated program of promotion, research, consumer information, and 
industry information designed to--
            (1) strengthen the position of the popcorn industry in the 
        marketplace; and
            (2) maintain and expand domestic and foreign markets and 
        uses for popcorn.

    (c) Purposes.--The purposes of this subtitle are to--
            (1) maintain and expand the markets for all popcorn products 
        in a manner that--
                    (A) is not designed to maintain or expand any 
                individual share of a producer or processor of the 
                market;
                    (B) does not compete with or replace individual 
                advertising or promotion efforts designed to promote 
                individual brand name or trade name popcorn products; 
                and
                    (C) authorizes and funds programs that result in 
                government speech promoting government objectives; and
            (2) establish a nationally coordinated program for popcorn 
        promotion, research, consumer information, and industry 
        information.

    (d) Statutory Construction.--This subtitle treats processors 
equitably. Nothing in this subtitle--
            (1) provides for the imposition of a trade barrier to the 
        entry into the United States of imported popcorn for the 
        domestic market; or
            (2) provides for the control of production or otherwise 
        limits the right of any individual processor to produce popcorn.

SEC. 573. <<NOTE: 7 USC 7482.>>  DEFINITIONS.

    In this subtitle (unless the context otherwise requires):
            (1) Board.--The term ``Board'' means the Popcorn Board 
        established under section 575(b).
            (2) Commerce.--The term ``commerce'' means interstate, 
        foreign, or intrastate commerce.
            (3) Consumer information.--The term ``consumer information'' 
        means information and programs that will assist consumers and 
        other persons in making evaluations and decisions regarding the 
        purchase, preparation, and use of popcorn.

[[Page 110 STAT. 1076]]

            (4) Department.--The term ``Department'' means the 
        Department of Agriculture.
            (5) Industry information.--The term ``industry information'' 
        means information or a program that will lead to the development 
        of--
                    (A) new markets, new marketing strategies, or 
                increased efficiency for the popcorn industry; or
                    (B) activities to enhance the image of the popcorn 
                industry.
            (6) Marketing.--The term ``marketing'' means the sale or 
        other disposition of unpopped popcorn for human consumption in a 
        channel of commerce, but does not include a sale or disposition 
        to or between processors.
            (7) Order.--The term ``order'' means an order issued under 
        section 574.
            (8) Person.--The term ``person'' means an individual, group 
        of individuals, partnership, corporation, association, or 
        cooperative, or any other legal entity.
            (9) Popcorn.--The term ``popcorn'' means unpopped popcorn 
        (Zea Mays L) that is--
                    (A) commercially grown;
                    (B) processed in the United States by shelling, 
                cleaning, or drying; and
                    (C) introduced into a channel of commerce.
            (10) Process.--The term ``process'' means to shell, clean, 
        dry, and prepare popcorn for the market, but does not include 
        packaging popcorn for the market without also engaging in 
        another activity described in this paragraph.
            (11) Processor.--The term ``processor'' means a person 
        engaged in the preparation of unpopped popcorn for the market 
        who owns or shares the ownership and risk of loss of the popcorn 
        and who processes and distributes over 4,000,000 pounds of 
        popcorn in the market per year.
            (12) Promotion.--The term ``promotion'' means an action, 
        including paid advertising, to enhance the image or desirability 
        of popcorn.
            (13) Research.--The term ``research'' means any type of 
        study to advance the image, desirability, marketability, 
        production, product development, quality, or nutritional value 
        of popcorn.
            (14) Secretary.--The term ``Secretary'' means the Secretary 
        of Agriculture.
            (15) State.--The term ``State'' means each of the 50 States 
        and the District of Columbia.
            (16) United states.--The term ``United States'' means all of 
        the States.

SEC. 574. <<NOTE: 7 USC 7483.>>  ISSUANCE OF ORDERS.

    (a) In General.--To effectuate the policy described in section 
572(b), the Secretary, subject to subsection (b), shall issue 1 or more 
orders applicable to processors. An order shall be applicable to all 
popcorn production and marketing areas in the United States. Not more 
than 1 order shall be in effect under this subtitle at any 1 time.
    (b) Procedure.--
            (1) Proposal or request for issuance.--The Secretary may 
        propose the issuance of an order, or an association of

[[Page 110 STAT. 1077]]

        processors or any other person that would be affected by an 
        order may request the issuance of, and submit a proposal for, an 
        order.
            (2) <<NOTE: Publication.>>  Notice and comment concerning 
        proposed order.--Not later than 60 days after the receipt of a 
        request and proposal for an order under paragraph (1), or at 
        such time as the Secretary determines to propose an order, the 
        Secretary shall publish a proposed order and give due notice and 
        opportunity for public comment on the proposed order.
            (3) Issuance of order.--After notice and opportunity for 
        public comment under paragraph (2), the Secretary shall issue an 
        order, taking into consideration the comments received and 
        including in the order such provisions as are necessary to 
        ensure that the order conforms to this subtitle. The order shall 
        be issued and become effective not later than 150 days after the 
        date of publication of the proposed order.

    (c) Amendments.--The Secretary, as appropriate, may amend an order. 
The provisions of this subtitle applicable to an order shall be 
applicable to any amendment to an order, except that an amendment to an 
order may not require a referendum to become effective.

SEC. 575. <<NOTE: 7 USC 7484.>>  REQUIRED TERMS IN ORDERS.

    (a) In General.--An order shall contain the terms and conditions 
specified in this section.
    (b) Establishment and Membership of Popcorn Board.--
            (1) In general.--The order shall provide for the 
        establishment of, and appointment of members to, a Popcorn Board 
        that shall consist of not fewer than 4 members and not more than 
        9 members.
            (2) Nominations.--The members of the Board shall be 
        processors appointed by the Secretary from nominations submitted 
        by processors in a manner authorized by the Secretary, subject 
        to paragraph (3). Not more than 1 member may be appointed to the 
        Board from nominations submitted by any 1 processor.
            (3) Geographical diversity.--In making appointments, the 
        Secretary shall take into account, to the extent practicable, 
        the geographical distribution of popcorn production throughout 
        the United States.
            (4) Terms.--The term of appointment of each member of the 
        Board shall be 3 years, except that the members appointed to the 
        initial Board shall serve, proportionately, for terms of 2, 3, 
        and 4 years, as determined by the Secretary.
            (5) Compensation and expenses.--A member of the Board shall 
        serve without compensation, but shall be reimbursed for the 
        expenses of the member incurred in the performance of duties for 
        the Board.

    (c) Powers and Duties of Board.--The order shall define the powers 
and duties of the Board, which shall include the power and duty--
            (1) to administer the order in accordance with the terms and 
        provisions of the order;
            (2) to issue regulations to effectuate the terms and 
        provisions of the order;
            (3) to appoint members of the Board to serve on an executive 
        committee;

[[Page 110 STAT. 1078]]

            (4) to propose, receive, evaluate, and approve budgets, 
        plans, and projects of promotion, research, consumer 
        information, and industry information, and to contract with 
        appropriate persons to implement the plans or projects;
            (5) to accept and receive voluntary contributions, gifts, 
        and market promotion or similar funds;
            (6) to invest, pending disbursement under a plan or project, 
        funds collected through assessments authorized under subsection 
        (f), only in--
                    (A) obligations of the United States or an agency of 
                the United States;
                    (B) general obligations of a State or a political 
                subdivision of a State;
                    (C) an interest-bearing account or certificate of 
                deposit of a bank that is a member of the Federal 
                Reserve System; or
                    (D) obligations fully guaranteed as to principal and 
                interest by the United States;
            (7) to receive, investigate, and report to the Secretary 
        complaints of violations of the order; and
            (8) to recommend to the Secretary amendments to the order.

    (d) Plans and Budgets.--
            (1) In general.--The order shall provide that the Board 
        shall submit to the Secretary for approval any plan or project 
        of promotion, research, consumer information, or industry 
        information.
            (2) Budgets.--The order shall require the Board to submit to 
        the Secretary for approval budgets on a fiscal year basis of the 
        anticipated expenses and disbursements of the Board in the 
        implementation of the order, including projected costs of plans 
        and projects of promotion, research, consumer information, and 
        industry information.

    (e) Contracts and Agreements.--
            (1) In general.--The order shall provide that the Board may 
        enter into contracts or agreements for the implementation and 
        carrying out of plans or projects of promotion, research, 
        consumer information, or industry information, including 
        contracts with a processor organization, and for the payment of 
        the cost of the plans or projects with funds collected by the 
        Board under the order.
            (2) Requirements.--A contract or agreement under paragraph 
        (1) shall provide that--
                    (A) the contracting party shall develop and submit 
                to the Board a plan or project, together with a budget 
                that shows the estimated costs to be incurred for the 
                plan or project;
                    (B) <<NOTE: Effective date.>>  the plan or project 
                shall become effective on the approval of the Secretary; 
                and
                    (C) <<NOTE: Records. Reports.>>  the contracting 
                party shall keep accurate records of each transaction of 
                the party, account for funds received and expended, make 
                periodic reports to the Board of activities conducted, 
                and make such other reports as the Board or the 
                Secretary may require.
            (3) Processor organizations.--The order shall provide that 
        the Board may contract with processor organizations for any 
        services required in addition to the services described in

[[Page 110 STAT. 1079]]

        paragraph (1). The contract shall include provisions comparable 
        to the provisions required by paragraph (2).

    (f) Assessments.--
            (1) Processors.--The order shall provide that each processor 
        marketing popcorn in the United States or for export shall, in 
        the manner prescribed in the order, pay assessments and remit 
        the assessments to the Board.
            (2) Direct marketers.--A processor that markets popcorn 
        produced by the processor directly to consumers shall pay and 
        remit the assessments on the popcorn directly to the Board in 
        the manner prescribed in the order.
            (3) Rate.--
                    (A) In general.--The rate of assessment prescribed 
                in the order shall be a rate established by the Board 
                but not more than $.08 per hundredweight of popcorn.
                    (B) Adjustment of rate.--The order shall provide 
                that the Board, with the approval of the Secretary, may 
                raise or lower the rate of assessment annually up to a 
                maximum of $.08 per hundredweight of popcorn.
            (4) Use of assessments.--
                    (A) In general.--Subject to subparagraphs (B) and 
                (C) and subsection (c)(5), the order shall provide that 
                the assessments collected shall be used by the Board--
                          (i) to pay expenses incurred in implementing 
                      and administering the order, with provision for a 
                      reasonable reserve; and
                          (ii) to cover such administrative costs as are 
                      incurred by the Secretary, except that the 
                      administrative costs incurred by the Secretary 
                      (other than any legal expenses incurred to defend 
                      and enforce the order) that may be reimbursed by 
                      the Board may not exceed 15 percent of the 
                      projected annual revenues of the Board.
                    (B) Expenditures based on source of assessments.--In 
                implementing plans and projects of promotion, research, 
                consumer information, and industry information, the 
                Board shall expend funds on--
                          (i) plans and projects for popcorn marketed in 
                      the United States or Canada in proportion to the 
                      amount of assessments collected on domestically 
                      marketed popcorn; and
                          (ii) plans and projects for exported popcorn 
                      in proportion to the amount of assessments 
                      collected on exported popcorn.
                    (C) Notification.--If the administrative costs 
                incurred by the Secretary that are reimbursed by the 
                Board exceed 10 percent of the projected annual revenues 
                of the Board, the Secretary shall notify as soon as 
                practicable the Committee on Agriculture of the House of 
                Representatives and the Committee on Agriculture, 
                Nutrition, and Forestry of the Senate.

    (g) Prohibition on Use of Funds.--The order shall prohibit any funds 
collected by the Board under the order from being used to influence 
government action or policy, other than the use of funds by the Board 
for the development and recommendation to the Secretary of amendments to 
the order.

[[Page 110 STAT. 1080]]

    (h) Books and Records of the Board.--The order shall require the 
Board to--
            (1) maintain such books and records (which shall be 
        available to the Secretary for inspection and audit) as the 
        Secretary may prescribe;
            (2) <<NOTE: Reports.>>  prepare and submit to the Secretary, 
        from time to time, such reports as the Secretary may prescribe; 
        and
            (3) account for the receipt and disbursement of all funds 
        entrusted to the Board.

    (i) Books and Records of Processors.--
            (1) Maintenance and reporting of information.--The order 
        shall require that each processor of popcorn for the market 
        shall--
                    (A) maintain, and make available for inspection, 
                such books and records as are required by the order; and
                    (B) <<NOTE: Reports.>>  file reports at such time, 
                in such manner, and having such content as is prescribed 
                in the order.
            (2) Use of information.--The Secretary shall authorize the 
        use of information regarding processors that may be accumulated 
        under a law or regulation other than this subtitle or a 
        regulation issued under this subtitle. The information shall be 
        made available to the Secretary as appropriate for the 
        administration or enforcement of this subtitle, the order, or 
        any regulation issued under this subtitle.
            (3) Confidentiality.--
                    (A) In general.--Subject to subparagraphs (B), (C), 
                and (D), all information obtained by the Secretary under 
                paragraphs (1) and (2) shall be kept confidential by all 
                officers, employees, and agents of the Board and the 
                Department.
                    (B) Disclosure by secretary.--Information referred 
                to in subparagraph (A) may be disclosed if--
                          (i) the Secretary considers the information 
                      relevant;
                          (ii) the information is revealed in a suit or 
                      administrative hearing brought at the request of 
                      the Secretary, or to which the Secretary or any 
                      officer of the United States is a party; and
                          (iii) the information relates to the order.
                    (C) Disclosure to other agency of federal 
                government.--
                          (i) In general.--No information obtained under 
                      the authority of this subtitle may be made 
                      available to another agency or officer of the 
                      Federal Government for any purpose other than the 
                      implementation of this subtitle and any 
                      investigatory or enforcement activity necessary 
                      for the implementation of this subtitle.
                          (ii) Penalty.--A person who knowingly violates 
                      this subparagraph shall, on conviction, be subject 
                      to a fine of not more than $1,000 or to 
                      imprisonment for not more than 1 year, or both, 
                      and if an officer, employee, or agent of the Board 
                      or the Department, shall be removed from office or 
                      terminated from employment, as applicable.
                    (D) General statements.--Nothing in this paragraph 
                prohibits--

[[Page 110 STAT. 1081]]

                          (i) the issuance of general statements based 
                      on the reports of a number of persons subject to 
                      an order or statistical data collected from the 
                      reports, if the statements do not identify the 
                      information provided by any person; or
                          (ii) the publication, by direction of the 
                      Secretary, of the name of a person violating the 
                      order, together with a statement of the particular 
                      provisions of the order violated by the person.

    (j) Other Terms and Conditions.--The order shall contain such other 
terms and conditions, consistent with this subtitle, as are necessary to 
effectuate this subtitle, including regulations relating to the 
assessment of late payment charges.

SEC. 576. <<NOTE: 7 USC 7485.>>  REFERENDA.

    (a) Initial Referendum.--
            (1) In general.--Within the 60-day period immediately 
        preceding the effective date of an order, as provided in section 
        574(b)(3), the Secretary shall conduct a referendum among 
        processors who, during a representative period as determined by 
        the Secretary, have been engaged in processing, for the purpose 
        of ascertaining whether the order shall go into effect.
            (2) Approval of order.--The order shall become effective, as 
        provided in section 574(b), only if the Secretary determines 
        that the order has been approved by not less than a majority of 
        the processors voting in the referendum and if the majority 
        processed more than 50 percent of the popcorn certified as 
        having been processed, during the representative period, by the 
        processors voting.

    (b) Additional Referenda.--
            (1) In general.--Not earlier than 3 years after the 
        effective date of an order approved under subsection (a), on the 
        request of the Board or a representative group of processors, as 
        described in paragraph (2), the Secretary may conduct additional 
        referenda to determine whether processors favor the suspension 
        or termination of the order.
            (2) Representative group of processors.--An additional 
        referendum on an order shall be conducted if the referendum is 
        requested by 30 percent or more of the number of processors who, 
        during a representative period as determined by the Secretary, 
        have been engaged in processing.
            (3) <<NOTE: Termination date.>>  Disapproval of order.--If 
        the Secretary determines, in a referendum conducted under 
        paragraph (1), that suspension or termination of the order is 
        favored by at least \2/3\ of the processors voting in the 
        referendum, the Secretary shall--
                    (A) suspend or terminate, as appropriate, collection 
                of assessments under the order not later than 180 days 
                after the date of determination; and
                    (B) suspend or terminate the order, as appropriate, 
                in an orderly manner as soon as practicable after the 
                date of determination.

    (c) Costs of Referendum.--The Secretary shall be reimbursed from 
assessments collected by the Board for any expenses incurred by the 
Secretary in connection with the conduct of any referendum under this 
section.

[[Page 110 STAT. 1082]]

    (d) Method of Conducting Referendum.--Subject to this section, a 
referendum conducted under this section shall be conducted in such 
manner as is determined by the Secretary.
    (e) Confidentiality of Ballots and Other Information.--
            (1) In general.--The ballots and other information or 
        reports that reveal or tend to reveal the vote of any processor, 
        or any business operation of a processor, shall be considered to 
        be strictly confidential and shall not be disclosed.
            (2) Penalty for violations.--An officer or employee of the 
        Department who knowingly violates paragraph (1) shall be subject 
        to the penalties described in section 575(i)(3)(C)(ii).

SEC. 577. <<NOTE: 7 USC 7486.>>  PETITION AND REVIEW.

    (a) Petition.--
            (1) In general.--A person subject to an order may file with 
        the Secretary a petition--
                    (A) stating that the order, a provision of the 
                order, or an obligation imposed in connection with the 
                order is not established in accordance with law; and
                    (B) requesting a modification of the order or 
                obligation or an exemption from the order or obligation.
            (2) Statute of limitations.--A petition under paragraph (1) 
        concerning an obligation may be filed not later than 2 years 
        after the date of imposition of the obligation.
            (3) Hearings.--The petitioner shall be given the opportunity 
        for a hearing on a petition filed under paragraph (1), in 
        accordance with regulations issued by the Secretary.
            (4) Ruling.--After a hearing under paragraph (3), the 
        Secretary shall issue a ruling on the petition that is the 
        subject of the hearing, which shall be final if the ruling is in 
        accordance with applicable law.

    (b) <<NOTE: Courts.>>  Review.--
            (1) Commencement of action.--The district court of the 
        United States for any district in which a person who is a 
        petitioner under subsection (a) resides or carries on business 
        shall have jurisdiction to review a ruling on the petition, if 
        the person files a complaint not later than 20 days after the 
        date of issuance of the ruling under subsection (a)(4).
            (2) Process.--Service of process in a proceeding under 
        paragraph (1) may be made on the Secretary by delivering a copy 
        of the complaint to the Secretary.
            (3) Remands.--If the court determines, under paragraph (1), 
        that a ruling issued under subsection (a)(4) is not in 
        accordance with applicable law, the court shall remand the 
        matter to the Secretary with directions--
                    (A) to make such ruling as the court shall determine 
                to be in accordance with law; or
                    (B) to take such further proceedings as, in the 
                opinion of the court, the law requires.

    (c) Enforcement.--The pendency of proceedings instituted under 
subsection (a) may not impede, hinder, or delay the Secretary or the 
Attorney General from taking action under section 578.

SEC. 578. <<NOTE: 7 USC 7487.>>  ENFORCEMENT.

    (a) In General.--The Secretary may issue an enforcement order to 
restrain or prevent any person from violating an order or regulation 
issued under this subtitle and may assess a civil penalty of not more 
than $1,000 for each violation of the enforce

[[Page 110 STAT. 1083]]

ment order, after an opportunity for an administrative hearing, if the 
Secretary determines that the administration and enforcement of the 
order and this subtitle would be adequately served by such a procedure.
    (b) <<NOTE: Courts.>>  Jurisdiction.--The district courts of the 
United States are vested with jurisdiction specifically to enforce, and 
to prevent and restrain any person from violating, an order or 
regulation issued under this subtitle.

    (c) Referral to Attorney General.--A civil action authorized to be 
brought under this section shall be referred to the Attorney General for 
appropriate action.

SEC. 579. <<NOTE: 7 USC 7488.>>  INVESTIGATIONS AND POWER TO SUBPOENA.

    (a) Investigations.--The Secretary may make such investigations as 
the Secretary considers necessary--
            (1) for the effective administration of this subtitle; and
            (2) to determine whether any person subject to this subtitle 
        has engaged, or is about to engage, in an act that constitutes 
        or will constitute a violation of this subtitle or of an order 
        or regulation issued under this subtitle.

    (b) Oaths, Affirmations, and Subpoenas.--For the purpose of an 
investigation under subsection (a), the Secretary may administer oaths 
and affirmations, subpoena witnesses, compel the attendance of 
witnesses, take evidence, and require the production of any records that 
are relevant to the inquiry. The attendance of witnesses and the 
production of records may be required from any place in the United 
States.
    (c) Aid of Courts.--
            (1) Request.--In the case of contumacy by, or refusal to 
        obey a subpoena issued to, any person, the Secretary may request 
        the aid of any court of the United States within the 
        jurisdiction of which the investigation or proceeding is carried 
        on, or where the person resides or carries on business, in 
        requiring the attendance and testimony of the person and the 
        production of records.
            (2) Enforcement order of the court.--The court may issue an 
        enforcement order requiring the person to appear before the 
        Secretary to produce records or to give testimony concerning the 
        matter under investigation.
            (3) Contempt.--A failure to obey an enforcement order of the 
        court under paragraph (2) may be punished by the court as a 
        contempt of the court.
            (4) Process.--Process in a case under this subsection may be 
        served in the judicial district in which the person resides or 
        carries on business or wherever the person may be found.

SEC. 580. <<NOTE: 7 USC 7489.>>  RELATION TO OTHER PROGRAMS.

    Nothing in this subtitle preempts or supersedes any other program 
relating to popcorn promotion organized and operated under the laws of 
the United States or any State.

SEC. 581. <<NOTE: 7 USC 7490.>>  REGULATIONS.

    The Secretary may issue such regulations as are necessary to carry 
out this subtitle.

SEC. 582. <<NOTE: 7 USC 7491.>>  AUTHORIZATION OF APPROPRIATIONS.

    There are authorized to be appropriated such sums as are necessary 
to carry out this subtitle. Amounts made available under

[[Page 110 STAT. 1084]]

this section or otherwise made available to the Department, and amounts 
made available under any other marketing or promotion order, may not be 
used to pay any administrative expense of the Board.

                        Subtitle F--Miscellaneous

SEC. 591. MAINTENANCE OF RECORDS FOR HONEY PROMOTION PROGRAM.

    Section 9(f) of the Honey Research, Promotion, and Consumer 
Information Act (7 U.S.C. 4608(f)) is amended by inserting 
``producers,'' after ``importers,''.

                            TITLE VI--CREDIT

                    Subtitle A--Farm Ownership Loans

SEC. 601. LIMITATION ON DIRECT FARM OWNERSHIP LOANS.

    Section 302 of the Consolidated Farm and Rural Development Act (7 
U.S.C. 1922) is amended by striking subsection (b) and inserting the 
following:
    ``(b) Direct Loans.--
            ``(1) In general.--Subject to paragraph (3), the Secretary 
        may make a direct loan under this subtitle only to a farmer or 
        rancher who has operated a farm or ranch for not less than 3 
        years and--
                    ``(A) is a qualified beginning farmer or rancher;
                    ``(B) has not received a previous direct farm 
                ownership loan made under this subtitle; or
                    ``(C) has not received a direct farm ownership loan 
                under this subtitle more than 10 years before the date 
                the new loan would be made.
            ``(2) Youth loans.--The operation of an enterprise by a 
        youth under section 311(b) shall not be considered the operation 
        of a farm or ranch for purposes of paragraph (1).
            ``(3) Transition rule.--
                    ``(A) In general.--Subject to subparagraphs (B) and 
                (C), the Secretary may make a direct loan under this 
                subtitle to a farmer or rancher who has a direct loan 
                outstanding under this subtitle on the date of enactment 
                of this paragraph.
                    ``(B) Less than 5 years.--If, as of the date of 
                enactment of this paragraph, a farmer or rancher has had 
                a direct loan outstanding under this subtitle for less 
                than 5 years, the Secretary shall not make a loan to the 
                farmer or rancher under subparagraph (A) after the date 
                that is 10 years after the date of enactment of this 
                paragraph.
                    ``(C) 5 years or more.--If, as of the date of 
                enactment of this paragraph, a farmer or rancher has had 
                a direct loan outstanding under this subtitle for 5 
                years or more, the Secretary shall not make a loan to 
                the farmer or rancher under subparagraph (A) after the 
                date that is 5 years after the date of enactment of this 
                paragraph.''.

[[Page 110 STAT. 1085]]

SEC. 602. PURPOSES OF LOANS.

    (a) In General.--Section 303 of the Consolidated Farm and Rural 
Development Act (7 U.S.C. 1923) is amended to read as follows:

``SEC. 303. PURPOSES OF LOANS.

    ``(a) Allowed Purposes.--
            ``(1) Direct loans.--A farmer or rancher may use a direct 
        loan made under this subtitle only for--
                    ``(A) acquiring or enlarging a farm or ranch;
                    ``(B) making capital improvements to a farm or 
                ranch;
                    ``(C) paying loan closing costs related to 
                acquiring, enlarging, or improving a farm or ranch; or
                    ``(D) paying for activities to promote soil and 
                water conservation and protection described in section 
                304 on a farm or ranch.
            ``(2) Guaranteed loans.--A farmer or rancher may use a loan 
        guaranteed under this subtitle only for--
                    ``(A) acquiring or enlarging a farm or ranch;
                    ``(B) making capital improvements to a farm or 
                ranch;
                    ``(C) paying loan closing costs related to 
                acquiring, enlarging, or improving a farm or ranch;
                    ``(D) paying for activities to promote soil and 
                water conservation and protection described in section 
                304 on a farm or ranch; or
                    ``(E) refinancing indebtedness.

    ``(b) Preferences.--In making or guaranteeing a loan under this 
subtitle for purchase of a farm or ranch, the Secretary shall give 
preference to a person who--
            ``(1) has a dependent family;
            ``(2) to the extent practicable, is able to make an initial 
        down payment on the farm or ranch; or
            ``(3) is an owner of livestock or farm or ranch equipment 
        that is necessary to successfully carry out farming or ranching 
        operations.

    ``(c) Hazard Insurance Requirement.--
            ``(1) In general.--After the Secretary makes the 
        determination required by paragraph (2), the Secretary may not 
        make a loan to a farmer or rancher under this subtitle unless 
        the farmer or rancher has, or agrees to obtain, hazard insurance 
        on any real property to be acquired or improved with the loan.
            ``(2) Determination.--Not later than 180 days after the date 
        of enactment of this subsection, the Secretary shall determine 
        the appropriate level of insurance to be required under 
        paragraph (1).''.

    (b) <<NOTE: 7 USC 1923 note.>>  Transitional Provision.--Section 
303(c)(1) of the Consolidated Farm and Rural Development Act shall not 
apply until the Secretary of Agriculture makes the determination 
required by section 303(c)(2) of the Act.

SEC. 603. SOIL AND WATER CONSERVATION AND PROTECTION.

    Section 304 of the Consolidated Farm and Rural Development Act (7 
U.S.C. 1924) is amended--
            (1) by striking subsections (b) and (c);
            (2) by striking ``Sec. 304. (a)(1) Loans'' and inserting the 
        following:

[[Page 110 STAT. 1086]]

``SEC. 304. SOIL AND WATER CONSERVATION AND PROTECTION.

    ``(a) In General.--Loans'';
            (3) by striking ``(2) In making or insuring'' and inserting 
        the following:

    ``(b) Priority.--In making or guaranteeing'';
            (4) by striking ``(3) The Secretary'' and inserting the 
        following:

    ``(c) Loan Maximum.--The Secretary'';
            (5) by redesignating subparagraphs (A) through (F) of 
        subsection (a) (as amended by paragraph (2)) as paragraphs (1) 
        through (6), respectively; and
            (6) by redesignating subparagraphs (A) and (B) of subsection 
        (c) (as amended by paragraph (4)) as paragraphs (1) and (2), 
        respectively.

SEC. 604. INTEREST RATE REQUIREMENTS.

    Section 307(a)(3) of the Consolidated Farm and Rural Development Act 
(7 U.S.C. 1927(a)(3)) is amended--
            (1) in subparagraph (B), by inserting ``subparagraph (D) and 
        in'' after ``Except as provided in''; and
            (2) by adding at the end the following:
                    ``(D) Joint financing arrangement.--If a direct farm 
                ownership loan is made under this subtitle as part of a 
                joint financing arrangement and the amount of the direct 
                farm ownership loan does not exceed 50 percent of the 
                total principal amount financed under the arrangement, 
                the interest rate on the direct farm ownership loan 
                shall be at least 4 percent annually.''.

SEC. 605. INSURANCE OF LOANS.

    Section 308 of the Consolidated Farm and Rural Development Act (7 
U.S.C. 1928) is amended to read as follows:

``SEC. 308. FULL FAITH AND CREDIT.

    ``(a) In General.--A contract of insurance or guarantee executed by 
the Secretary under this title shall be an obligation supported by the 
full faith and credit of the United States.
    ``(b) Contestability.--A contract of insurance or guarantee executed 
by the Secretary under this title shall be incontestable except for 
fraud or misrepresentation that the lender or any holder--
            ``(1) has actual knowledge of at the time the contract or 
        guarantee is executed; or
            ``(2) participates in or condones.''.

SEC. 606. LOANS GUARANTEED.

    Section 309(h) of the Consolidated Farm and Rural Development Act (7 
U.S.C. 1929(h)) is amended by adding at the end the following:
            ``(4) Maximum guarantee of 90 percent.--Except as provided 
        in paragraphs (5) and (6), a loan guarantee under this title 
        shall be for not more than 90 percent of the principal and 
        interest due on the loan.
            ``(5) Refinanced loans guaranteed at 95 percent.--The 
        Secretary shall guarantee 95 percent of--
                    ``(A) in the case of a loan that solely refinances a 
                direct loan made under this title, the principal and 
                interest due on the loan on the date of the refinancing; 
                or

[[Page 110 STAT. 1087]]

                    ``(B) in the case of a loan that is used for 
                multiple purposes, the portion of the loan that 
                refinances the principal and interest due on a direct 
                loan made under this title that is outstanding on the 
                date the loan is guaranteed.
            ``(6) Beginning farmer loans guaranteed up to 95 percent.--
        The Secretary may guarantee not more than 95 percent of--
                    ``(A) a farm ownership loan for acquiring a farm or 
                ranch to a borrower who is participating in the down 
                payment loan program under section 310E; or
                    ``(B) an operating loan to a borrower who is 
                participating in the down payment loan program under 
                section 310E that is made during the period that the 
                borrower has a direct loan outstanding under this 
                subtitle for acquiring a farm or ranch.''.

                       Subtitle B--Operating Loans

SEC. 611. LIMITATION ON DIRECT OPERATING LOANS.

    (a) In General.--Section 311 of the Consolidated Farm and Rural 
Development Act (7 U.S.C. 1941) is amended by striking subsection (c) 
and inserting the following:
    ``(c) Direct Loans.--
            ``(1) In general.--Subject to paragraph (3), the Secretary 
        may make a direct loan under this subtitle only to a farmer or 
        rancher who--
                    ``(A) is a qualified beginning farmer or rancher who 
                has not operated a farm or ranch, or who has operated a 
                farm or ranch for not more than 5 years;
                    ``(B) has not received a previous direct operating 
                loan made under this subtitle; or
                    ``(C) has received a previous direct operating loan 
                made under this subtitle during 6 or fewer years.
            ``(2) Youth loans.--In this subsection, the term `direct 
        operating loan' shall not include a loan made to a youth under 
        subsection (b).
            ``(3) Transition rule.--If, as of the date of enactment of 
        this paragraph, a farmer or rancher has received a direct 
        operating loan under this subtitle during each of 4 or more 
        previous years, the borrower shall be eligible to receive a 
        direct operating loan under this subtitle during 3 additional 
        years after the date of enactment of this paragraph.''.

    (b) Youth Enterprises Not Farming or Ranching.--Section 311(b) of 
the Consolidated Farm and Rural Development Act (7 U.S.C. 1941(b)) is 
amended by adding at the end the following:
            ``(4) Youth enterprises not farming or ranching.--The 
        operation of an enterprise by a youth under this subsection 
        shall not be considered the operation of a farm or ranch under 
        this title.''.

SEC. 612. PURPOSES OF OPERATING LOANS.

    (a) In General.--Section 312 of the Consolidated Farm and Rural 
Development Act (7 U.S.C. 1942) is amended to read as follows:

[[Page 110 STAT. 1088]]

``SEC. 312. PURPOSES OF LOANS.

    ``(a) In General.--A direct loan may be made under this subtitle 
only for--
            ``(1) paying the costs incident to reorganizing a farm or 
        ranch for more profitable operation;
            ``(2) purchasing livestock, poultry, or farm or ranch 
        equipment;
            ``(3) purchasing feed, seed, fertilizer, insecticide, or 
        farm or ranch supplies, or to meet other essential farm or ranch 
        operating expenses, including cash rent;
            ``(4) financing land or water development, use, or 
        conservation;
            ``(5) paying loan closing costs;
            ``(6) assisting a farmer or rancher in changing the 
        equipment, facilities, or methods of operation of a farm or 
        ranch to comply with a standard promulgated under section 6 of 
        the Occupational Safety and Health Act of 1970 (29 U.S.C. 655) 
        or a standard adopted by a State under a plan approved under 
        section 18 of the Act (29 U.S.C. 667), if the Secretary 
        determines that without assistance under this paragraph the 
        farmer or rancher is likely to suffer substantial economic 
        injury in complying with the standard;
            ``(7) training a limited-resource borrower receiving a loan 
        under section 310D in maintaining records of farming and 
        ranching operations;
            ``(8) training a borrower under section 359;
            ``(9) refinancing the indebtedness of a borrower, if the 
        borrower--
                    ``(A) has refinanced a loan under this subtitle not 
                more than 4 times previously; and
                    ``(B)(i) is a direct loan borrower under this title 
                at the time of the refinancing and has suffered a 
                qualifying loss because of a natural disaster declared 
                by the Secretary under this title or a major disaster or 
                emergency designated by the President under the Robert 
                T. Stafford Disaster Relief and Emergency Assistance Act 
                (42 U.S.C. 5121 et seq.); or
                    ``(ii) is refinancing a debt obtained from a 
                creditor other than the Secretary; or
            ``(10) providing other farm, ranch, or home needs, including 
        family subsistence.

    ``(b) Guaranteed Loans.--A loan may be guaranteed under this 
subtitle only for--
            ``(1) paying the costs incident to reorganizing a farm or 
        ranch for more profitable operation;
            ``(2) purchasing livestock, poultry, or farm or ranch 
        equipment;
            ``(3) purchasing feed, seed, fertilizer, insecticide, or 
        farm or ranch supplies, or to meet other essential farm or ranch 
        operating expenses, including cash rent;
            ``(4) financing land or water development, use, or 
        conservation;
            ``(5) refinancing indebtedness;
            ``(6) paying loan closing costs;
            ``(7) assisting a farmer or rancher in changing the 
        equipment, facilities, or methods of operation of a farm or 
        ranch to comply with a standard promulgated under section 6 of

[[Page 110 STAT. 1089]]

        the Occupational Safety and Health Act of 1970 (29 U.S.C. 655) 
        or a standard adopted by a State under a plan approved under 
        section 18 of the Act (29 U.S.C. 667), if the Secretary 
        determines that without assistance under this paragraph the 
        farmer or rancher is likely to suffer substantial economic 
        injury due to compliance with the standard;
            ``(8) training a borrower under section 359; or
            ``(9) providing other farm, ranch, or home needs, including 
        family subsistence.

    ``(c) Hazard Insurance Requirement.--
            ``(1) In general.--After the Secretary makes the 
        determination required by paragraph (2), the Secretary may not 
        make a loan to a farmer or rancher under this subtitle unless 
        the farmer or rancher has, or agrees to obtain, hazard insurance 
        on the property to be acquired with the loan.
            ``(2) Determination.--Not later than 180 days after the date 
        of enactment of this paragraph, the Secretary shall determine 
        the appropriate level of insurance to be required by paragraph 
        (1).

    ``(d) Private Reserve.--
            ``(1) In general.--Notwithstanding any other provision of 
        this title, the Secretary may reserve a portion of any loan made 
        under this subtitle to be placed in an unsupervised bank account 
        that may be used at the discretion of the borrower for the basic 
        family needs of the borrower and the immediate family of the 
        borrower.
            ``(2) Limit on size of the reserve.--The size of the reserve 
        shall not exceed the least of--
                    ``(A) 10 percent of the loan;
                    ``(B) $5,000; or
                    ``(C) the amount needed to provide for the basic 
                family needs of the borrower and the borrower's 
                immediate family for 3 calendar months.''.

    (b) <<NOTE: 7 USC 1942 note.>>  Transitional Provision.--Section 
312(c)(1) of the Consolidated Farm and Rural Development Act shall not 
apply until the Secretary of Agriculture makes the determination 
required by section 312(c)(2) of the Act.

SEC. 613. PARTICIPATION IN LOANS.

    Section 315 of the Consolidated Farm and Rural Development Act (7 
U.S.C. 1945) is repealed.

SEC. 614. LINE-OF-CREDIT LOANS.

    Section 316 of the Consolidated Farm and Rural Development Act (7 
U.S.C. 1946) is amended by adding at the end the following:
    ``(c) Line-of-Credit Loans.--
            ``(1) In general.--A loan made or guaranteed by the 
        Secretary under this subtitle may be in the form of a line-of-
        credit loan.
            ``(2) Term.--A line-of-credit loan under paragraph (1) shall 
        terminate not later than 5 years after the date that the loan is 
        made or guaranteed.
            ``(3) Eligibility.--For purposes of determining eligibility 
        for a farm operating loan under this subtitle, each year during 
        which a farmer or rancher takes an advance or draws on a line-
        of-credit loan the farmer or rancher shall be considered to have 
        received an operating loan for 1 year.

[[Page 110 STAT. 1090]]

            ``(4) Termination of delinquent loans.--If a borrower does 
        not pay an installment on a line-of-credit loan on schedule, the 
        borrower may not take an advance or draw on the line-of-credit, 
        unless the Secretary determines that--
                    ``(A) the borrower's failure to pay on schedule was 
                due to unusual conditions that the borrower could not 
                control; and
                    ``(B) the borrower will reduce the line-of-credit 
                balance to the scheduled level at the end of--
                          ``(i) the production cycle; or
                          ``(ii) the marketing of the borrower's 
                      agricultural products.
            ``(5) Agricultural commodities.--A line-of-credit loan may 
        be used to finance the production or marketing of an 
        agricultural commodity that--
                    ``(A) is eligible for a price support program of the 
                Department of Agriculture; or
                    ``(B) was eligible for a price support program of 
                the Department of Agriculture on the day before the date 
                of enactment of the Federal Agriculture Improvement and 
                Reform Act of 1996.''.

SEC. 615. INSURANCE OF OPERATING LOANS.

    Section 317 of the Consolidated Farm and Rural Development Act (7 
U.S.C. 1947) is repealed.

SEC. 616. SPECIAL ASSISTANCE FOR BEGINNING FARMERS AND RANCHERS.

    (a) In General.--Section 318 of the Consolidated Farm and Rural 
Development Act (7 U.S.C. 1948) is repealed.
    (b) Conforming Amendment.--Section 310F of the Consolidated Farm and 
Rural Development Act (7 U.S.C. 1936) is repealed.

SEC. 617. LIMITATION ON PERIOD FOR WHICH BORROWERS ARE ELIGIBLE FOR 
            GUARANTEED ASSISTANCE.

    Section 319 of the Consolidated Farm and Rural Development Act (7 
U.S.C. 1949) is amended by striking subsection (b) and inserting the 
following:
    ``(b) Limitation on Period Borrowers Are Eligible for Guaranteed 
Assistance.--
            ``(1) General rule.--Subject to paragraph (2), the Secretary 
        shall not guarantee a loan under this subtitle for a borrower 
        for any year after the 15th year that a loan is made to, or a 
        guarantee is provided with respect to, the borrower under this 
        subtitle.
            ``(2) Transition rule.--If, as of October 28, 1992, a farmer 
        or rancher has received a direct or guaranteed operating loan 
        under this subtitle during each of 10 or more previous years, 
        the borrower shall be eligible to receive a guaranteed operating 
        loan under this subtitle during 5 additional years after October 
        28, 1992.''.

[[Page 110 STAT. 1091]]

                       Subtitle C--Emergency Loans

SEC. 621. HAZARD INSURANCE REQUIREMENT.

    (a) In General.--Section 321 of the Consolidated Farm and Rural 
Development Act (7 U.S.C. 1961) is amended by striking subsection (b) 
and inserting the following:
    ``(b) Hazard Insurance Requirement.--
            ``(1) In general.--After the Secretary makes the 
        determination required by paragraph (2), the Secretary may not 
        make a loan to a farmer or rancher under this subtitle to cover 
        a property loss unless the farmer or rancher had hazard 
        insurance that insured the property at the time of the loss.
            ``(2) Determination.--Not later than 180 days after the date 
        of enactment of this paragraph, the Secretary shall determine 
        the appropriate level of insurance to be required under 
        paragraph (1).''.

    (b) <<NOTE: 7 USC 1961 note.>>  Transitional Provision.--Section 
321(b)(1) of the Consolidated Farm and Rural Development Act shall not 
apply until the Secretary of Agriculture makes the determination 
required by section 321(b)(2) of the Act.

SEC. 622. NARROWING OF AUTHORITY TO WAIVE APPLICATION OF THE CREDIT 
            ELSEWHERE TEST.

    The second proviso of section 322(b) of the Consolidated Farm and 
Rural Development Act (7 U.S.C. 1962(b)) is amended by striking 
``$300,000 or less'' and inserting ``$100,000 or less''.

SEC. 623. LINKING OF EMERGENCY LOANS FOR CROP OR LIVESTOCK CHANGES TO 
            NATURAL DISASTERS.

    Section 323 of the Consolidated Farm and Rural Development Act (7 
U.S.C. 1963) is amended by inserting ``that are necessitated by a 
natural disaster, major disaster, or emergency and that are'' after 
``livestock changes''.

SEC. 624. MAXIMUM EMERGENCY LOAN INDEBTEDNESS.

    Section 324 of the Consolidated Farm and Rural Development Act (7 
U.S.C. 1964) is amended by striking ``Sec. 324. (a) No loan'' and all 
that follows through the end of subsection (a) and inserting the 
following:

``SEC. 324. TERMS OF LOANS.

    ``(a) Maximum Amount of Loan.--The Secretary may not make a loan 
under this subtitle to a borrower who has suffered a loss in an amount 
that--
            ``(1) exceeds the actual loss caused by a disaster; or
            ``(2) would cause the total indebtedness of the borrower 
        under this subtitle to exceed $500,000.''.

SEC. 625. ESTABLISHMENT OF DATE FOR EMERGENCY LOAN ASSET VALUATION.

    The last sentence of section 324(d) of the Consolidated Farm and 
Rural Development Act (7 U.S.C. 1964(d)) is amended by striking ``value 
the assets'' and all that follows through the period and inserting 
``establish the value of the assets as of the day before the occurrence 
of the natural disaster, major disaster, or emergency that is the basis 
for a request for assistance under

[[Page 110 STAT. 1092]]

this subtitle or the Robert T. Stafford Disaster Relief and Emergency 
Assistance Act (42 U.S.C. 5121 et seq.).''.

SEC. 626. INSURANCE OF EMERGENCY LOANS.

    Section 328 of the Consolidated Farm and Rural Development Act (7 
U.S.C. 1968) is repealed.

                  Subtitle D--Administrative Provisions

SEC. 631. TEMPORARY AUTHORITY TO ENTER INTO CONTRACTS.

    Section 331 of the Consolidated Farm and Rural Development Act (7 
U.S.C. 1981) is amended by adding at the end the following:
    ``(d) Temporary Authority To Enter Into Contracts.--
            ``(1) Definitions.--In this subsection:
                    ``(A) Eligible financial institution.--The term 
                `eligible financial institution' means a financial 
                institution with substantial experience in farm, ranch, 
                or aquaculture lending that is regulated by the 
                Comptroller of the Currency, the Farm Credit 
                Administration, or a similar regulatory body.
                    ``(B) Pilot project.--The term `pilot project' 
                includes services related to borrower loan 
                documentation, financial information, credit history, 
                and appraisals of real estate and chattel.
            ``(2) Authority.--The Secretary may enter into a contract 
        with an eligible financial institution for servicing a farmer 
        program loan under this title, including 1 or more pilot 
        projects.
            ``(3) Report.--Not later than September 30, 1997, and 
        September 30 of each year thereafter, the Secretary shall report 
        to Congress on--
                    ``(A) the Secretary's experience in using contracts 
                under paragraph (2); and
                    ``(B) recommendations for legislation related to 
                this subsection, if any.
            ``(4) Savings clause.--Nothing in this subsection shall 
        limit the authority of the Secretary or an eligible financial 
        institution to contract for any services under this Act or any 
        other law.
            ``(5) Sunset provision.--This subsection shall be effective 
        until September 30, 2002.''.

SEC. 632. USE OF COLLECTION AGENCIES.

    Section 331 of the Consolidated Farm and Rural Development Act (7 
U.S.C. 1981) (as amended by section 631) is amended by adding at the end 
the following:
    ``(e) Private Collection Agency.--The Secretary may use a private 
collection agency to collect a claim or obligation described in 
subsection (b)(5).''.

SEC. 633. NOTICE OF LOAN SERVICE PROGRAMS.

    Section 331D(a) of the Consolidated Farm and Rural Development Act 
(7 U.S.C. 1981d(a)) is amended by striking ``180 days delinquent in'' 
and inserting ``90 days past due on''.

[[Page 110 STAT. 1093]]

SEC. 634. CLARIFICATION OF WRITTEN STATEMENT REQUIRED OF BORROWERS.

    Section 333(1)(B) of the Consolidated Farm and Rural Development Act 
(7 U.S.C. 1983(1)(B)) is amended by striking ``a written statement 
showing the applicant's net worth'' and inserting ``an appropriate 
written financial statement''.

SEC. 635. ANNUAL REVIEW OF THE CREDIT HISTORY, BUSINESS OPERATION, AND 
            CONTINUED ELIGIBILITY OF A BORROWER.

    (a) In General.--Section 333 of the Consolidated Farm and Rural 
Development Act (7 U.S.C. 1983) is amended--
            (1) by redesignating paragraphs (2), (3), and (4) as 
        paragraphs (3), (4), and (5), respectively; and
            (2) by inserting after paragraph (1) the following:
            ``(2) except with respect to a loan under section 306, 310B, 
        or 314, the county or area committee established under section 
        8(b)(5)(B) of the Soil Conservation and Domestic Allotment Act 
        (16 U.S.C. 590h(b)(5)(B)) to certify in writing--
                    ``(A) that an annual review of the credit history 
                and business operation of the borrower has been 
                conducted; and
                    ``(B) that a review of the continued eligibility of 
                the borrower for the loan has been conducted;''.

    (b) Conforming Amendment.--The third sentence of section 310B(a) of 
the Consolidated Farm and Rural Development Act (7 U.S.C. 1932(a)) is 
amended by striking ``(3) of'' and inserting ``(4) of''.

SEC. 636. EXTENSION OF VETERANS PREFERENCE.

    Section 333 of the Consolidated Farm and Rural Development Act (7 
U.S.C. 1983) (as amended by section 635(a)) is amended by striking 
paragraph (5) and inserting the following:
            ``(5) the application of a person who is a veteran of any 
        war, as defined in section 101(12) of title 38, United States 
        Code, for a loan under subtitle A or B to be given preference 
        over a similar application from a person who is not a veteran of 
        any war, if the applications are on file in a county or area 
        office at the same time.''.

SEC. 637. VERIFICATION OF THE CREDIT ELSEWHERE TEST.

    Section 333A(f)(4) of the Consolidated Farm and Rural Development 
Act (7 U.S.C. 1983a(f)(4)) is amended--
            (1) by striking ``(4) With'' and all that follows through 
        ``seasoned'' and inserting the following:
            ``(4) Verification.--
                    ``(A) In general.--The Secretary shall provide a 
                prospectus of a seasoned''; and
            (2) by striking ``If the Secretary'' and inserting the 
        following:
                    ``(B) Notification.--The Secretary shall notify each 
                borrower of a loan that a prospectus has been provided 
                to a lender under subparagraph (A).
                    ``(C) Credit extended.--If the Secretary''.

SEC. 638. SALE OF PROPERTY.

    Section 335 of the Consolidated Farm and Rural Development Act (7 
U.S.C. 1985) is amended--

[[Page 110 STAT. 1094]]

            (1) in subsection (b), by striking ``subsection (e)'' and 
        inserting ``subsections (c) and (e)'';
            (2) by striking subsection (c) and inserting the following:

    ``(c) Sale of Property.--
            ``(1) In general.--Subject to this subsection and subsection 
        (e)(1)(A), the Secretary shall offer to sell real property that 
        is acquired by the Secretary under this title using the 
        following order and method of sale:
                    ``(A) Advertisement.--Not later than 15 days after 
                acquiring real property, the Secretary shall publicly 
                advertise the property for sale.
                    ``(B) Beginning farmer or rancher.--
                          ``(i) In general.--Not later than 75 days 
                      after acquiring real property, the Secretary shall 
                      offer to sell the property to a qualified 
                      beginning farmer or rancher at current market 
                      value based on a current appraisal.
                          ``(ii) Random selection.--If more than 1 
                      qualified beginning farmer or rancher offers to 
                      purchase the property, the Secretary shall select 
                      between the qualified applicants on a random 
                      basis.
                          ``(iii) Appeal of random selection.--A random 
                      selection or denial by the Secretary of a 
                      beginning farmer or rancher for farm inventory 
                      property under this subparagraph shall be final 
                      and not administratively appealable.
                    ``(C) Public sale.--If no acceptable offer is 
                received from a qualified beginning farmer or rancher 
                under subparagraph (B) not later than 75 days after 
                acquiring the real property, the Secretary shall, not 
                later than 30 days after the 75-day period, sell the 
                property after public notice at a public sale, and, if 
                no acceptable bid is received, by negotiated sale, at 
                the best price obtainable.
            ``(2) Transitional rules.--
                    ``(A) Previous lease.--In the case of real property 
                acquired prior to the date of enactment of this 
                subparagraph that the Secretary leased prior to the date 
                of enactment of this subparagraph, not later than 60 
                days after the lease expires, the Secretary shall offer 
                to sell the property in accordance with paragraph (1).
                    ``(B) Previously in inventory.--In the case of real 
                property acquired prior to the date of enactment of this 
                subparagraph that the Secretary has not leased, not 
                later than 60 days after the date of enactment of this 
                subparagraph, the Secretary shall offer to sell the 
                property in accordance with paragraph (1).
            ``(3) Interest.--
                    ``(A) In general.--Subject to subparagraph (B), any 
                conveyance of real property under this subsection shall 
                include all of the interest of the United States in the 
                property, including mineral rights.
                    ``(B) Conservation.--The Secretary may for 
                conservation purposes grant or sell an easement, 
                restriction, development right, or similar legal right 
                to real property to a State, a political subdivision of 
                a State, or a private nonprofit organization separately 
                from the underlying fee or other rights to the property 
                owned by the United States.

[[Page 110 STAT. 1095]]

            ``(4) Other law.--The Federal Property and Administrative 
        Services Act of 1949 (40 U.S.C. 471 et seq.) shall not apply to 
        any exercise of authority under this title.
            ``(5) Lease of property.--
                    ``(A) In general.--Subject to subparagraph (B), the 
                Secretary may not lease any real property acquired under 
                this title.
                    ``(B) Exception.--
                          ``(i) Beginning farmer or rancher.--The 
                      Secretary may lease or contract to sell to a 
                      beginning farmer or rancher a farm or ranch 
                      acquired by the Secretary under this title if the 
                      beginning farmer or rancher qualifies for a credit 
                      sale or direct farm ownership loan under subtitle 
                      A but credit sale authority for loans or direct 
                      farm ownership loan funds, respectively, are not 
                      available.
                          ``(ii) Term.--The term of a lease or contract 
                      to sell to a beginning farmer or rancher under 
                      clause (i) shall be until the earlier of--
                                    ``(I) the date that is 18 months 
                                after the date of the lease or sale; or
                                    ``(II) the date that direct farm 
                                ownership loan funds or credit sale 
                                authority for loans becomes available to 
                                the beginning farmer or rancher.
                          ``(iii) Income-producing capability.--In 
                      determining the rental rate on real property 
                      leased under this subparagraph, the Secretary 
                      shall consider the income-producing capability of 
                      the property during the term that the property is 
                      leased.
            ``(6) Expedited determination.--
                    ``(A) In general.--On the request of an applicant, 
                not later than 30 days after denial of the applicant's 
                application, the appropriate State director shall 
                provide an expedited review and determination of whether 
                the applicant is a beginning farmer or rancher for the 
                purpose of acquiring farm inventory property.
                    ``(B) Appeal.--The determination of a State Director 
                under subparagraph (A) shall be final and not 
                administratively appealable.
                    ``(C) Effects of determinations.--
                          ``(i) <<NOTE: Records.>>  In general.--The 
                      Secretary shall maintain statistical data on the 
                      number and results of determinations made under 
                      subparagraph (A) and the effect of the 
                      determinations on--
                                    ``(I) selling farm inventory 
                                property to beginning farmers and 
                                ranchers; and
                                    ``(II) disposing of real property in 
                                inventory.
                          ``(ii) Notification.--The Secretary shall 
                      notify the Committee on Agriculture of the House 
                      of Representatives and the Committee on 
                      Agriculture, Nutrition, and Forestry of the Senate 
                      if the Secretary determines that the review 
                      process under subparagraph (A) is adversely 
                      affecting the selling of farm inventory property 
                      to beginning farmers or ranchers or the disposing 
                      of real property in inventory.''; and
            (3) in subsection (e)--
                    (A) in paragraph (1)--

[[Page 110 STAT. 1096]]

                          (i) by striking subparagraphs (A) through (C);
                          (ii) by redesignating subparagraphs (D) 
                      through (G) as subparagraphs (A) through (D), 
                      respectively;
                          (iii) in subparagraph (A) (as redesignated by 
                      clause (ii))--
                                    (I) in clause (i)--
                                            (aa) in the matter preceding 
                                        subclause (I), by striking 
                                        ``(G)'' and inserting ``(D)'';
                                            (bb) by striking subclause 
                                        (I) and inserting the following:
            ``(I) the Secretary acquires property under this title that 
        is located within an Indian reservation; and'';
                                            (cc) in subclause (II), by 
                                        striking ``, and'' at the end 
                                        and inserting a semicolon; and
                                            (dd) by striking subclause 
                                        (III); and
                                    (II) in clause (iii), by striking 
                                ``The Secretary shall'' and all that 
                                follows through ``of subparagraph (A),'' 
                                and inserting ``Not later than 90 days 
                                after acquiring the property, the 
                                Secretary shall''; and
                          (iv) in subparagraph (D) (as redesignated by 
                      clause (ii))--
                                    (I) in clause (i), by striking 
                                ``(D)'' in the matter following 
                                subclause (IV) and inserting ``(A)'';
                                    (II) in clause (iii)(I), by striking 
                                ``subparagraphs (C)(i), (C)(ii), and 
                                (D)'' and inserting ``subparagraph 
                                (A)''; and
                                    (III) by striking clause (v) and 
                                inserting the following:
                          ``(v) <<NOTE: Native Americans.>>  Foreclosure 
                      procedures.--
                                    ``(I) Notice to borrower.--If an 
                                Indian borrower-owner does not 
                                voluntarily convey to the Secretary real 
                                property described in clause (i), not 
                                less than 30 days before a foreclosure 
                                sale of the property, the Secretary 
                                shall provide the Indian borrower-owner 
                                with the option of--
                                            ``(aa) requiring the 
                                        Secretary to assign the loan and 
                                        security instruments to the 
                                        Secretary of the Interior, if 
                                        the Secretary of the Interior 
                                        agrees to an assignment 
                                        releasing the Secretary of 
                                        Agriculture from all further 
                                        responsibility for collection of 
                                        any amounts with regard to the 
                                        loan secured by the real 
                                        property; or
                                            ``(bb) requiring the 
                                        Secretary to assign the loan and 
                                        security instruments to the 
                                        tribe having jurisdiction over 
                                        the reservation in which the 
                                        real property is located, if the 
                                        tribe agrees to the assignment.
                                    ``(II) Notice to tribe.--If an 
                                Indian borrower-owner does not 
                                voluntarily convey to the Secretary real 
                                property described in clause (i), not 
                                less than 30 days before a foreclosure 
                                sale of the property, the Secretary 
                                shall provide written notice to the 
                                Indian tribe that has jurisdiction over 
                                the reservation in which the real 
                                property is located of--
                                            ``(aa) the sale;

[[Page 110 STAT. 1097]]

                                            ``(bb) the fair market value 
                                        of the property; and
                                            ``(cc) the requirements of 
                                        this subparagraph.
                                    ``(III) Assumed loans.--If an Indian 
                                tribe assumes a loan under subclause 
                                (I)--
                                            ``(aa) the Secretary shall 
                                        not foreclose the loan because 
                                        of any default that occurred 
                                        prior to the date of the 
                                        assumption;
                                            ``(bb) the loan shall be for 
                                        the lesser of the outstanding 
                                        principal and interest of the 
                                        loan or the fair market value of 
                                        the property; and
                                            ``(cc) the loan shall be 
                                        treated as though the loan was 
                                        made under Public Law 91-229 (25 
                                        U.S.C. 488 et seq.).'';
                    (B) by striking paragraph (3);
                    (C) in paragraph (4)--
                          (i) by striking subparagraph (B);
                          (ii) in subparagraph (A)--
                                    (I) in clause (i), by striking 
                                ``(i)''; and
                                    (II) by redesignating clause (ii) as 
                                subparagraph (B); and
                          (iii) in subparagraph (B) (as redesignated by 
                      clause (ii)(II)), by striking ``clause (i)'' and 
                      inserting ``subparagraph (A)'';
                    (D) by striking paragraphs (5), (6), and (9); and
                    (E) by redesignating paragraphs (4), (7), (8), and 
                (10) as paragraphs (3), (4), (5), and (6), respectively.

SEC. 639. EASEMENTS ON INVENTORIED PROPERTY.

    Section 335(g) of the Consolidated Farm and Rural Development Act (7 
U.S.C. 1985(g)) is amended--
            (1) in paragraph (1)--
                    (A) by striking ``(g)(1) Subject to paragraphs (2) 
                through (5)'' and inserting the following:

    ``(g) Easements on Inventoried Property.--
            ``(1) In general.--Subject to paragraph (2)''; and
                    (B) by striking ``, as determined'' and all that 
                follows through ``3801 et seq.)'';
            (2) by striking paragraph (2) and inserting the following:
            ``(2) Limitation.--The Secretary shall not establish a 
        wetland conservation easement on an inventoried property that--
                    ``(A) was cropland on the date the property entered 
                the inventory of the Secretary; or
                    ``(B) was used for farming at any time during the 
                period beginning on the date 5 years before the property 
                entered the inventory of the Secretary and ending on the 
                date the property entered the inventory of the 
                Secretary.'';
            (3) by striking paragraphs (3), (4), (5), and (8);
            (4) by striking ``(6) The Secretary'' and inserting the 
        following:
            ``(3) Notification.--The Secretary''; and
            (5) by striking ``(7) The appraised'' and inserting the 
        following:
            ``(4) Appraised value.--The appraised''.

[[Page 110 STAT. 1098]]

SEC. 640. DEFINITIONS.

    Section 343(a) of the Consolidated Farm and Rural Development Act (7 
U.S.C. 1991(a)) is amended--
            (1) in paragraph (11)--
                    (A) in the text preceding subparagraph (A), by 
                striking ``applicant--'' and inserting ``applicant, 
                regardless of whether the applicant is participating in 
                a program under section 310E--''; and
                    (B) in subparagraph (F)--
                          (i) by striking ``15 percent'' and inserting 
                      ``25 percent''; and
                          (ii) by inserting before the semicolon at the 
                      end the following: ``, except that this 
                      subparagraph shall not apply to a loan made or 
                      guaranteed under subtitle B''; and
            (2) by adding at the end the following:
            ``(12) Debt forgiveness.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), the term `debt forgiveness' means 
                reducing or terminating a farmer program loan made or 
                guaranteed under this title, in a manner that results in 
                a loss to the Secretary, through--
                          ``(i) writing down or writing off a loan under 
                      section 353;
                          ``(ii) compromising, adjusting, reducing, or 
                      charging-off a debt or claim under section 331;
                          ``(iii) paying a loss on a guaranteed loan 
                      under section 357; or
                          ``(iv) discharging a debt as a result of 
                      bankruptcy.
                    ``(B) Loan restructuring.--The term `debt 
                forgiveness' does not include consolidation, 
                rescheduling, reamortization, or deferral.''.

SEC. 641. AUTHORIZATION FOR LOANS.

    Section 346 of the Consolidated Farm and Rural Development Act (7 
U.S.C. 1994) is amended--
            (1) in the second sentence of subsection (a), by striking 
        ``with or without'' and all that follows through 
        ``administration''; and
            (2) by striking subsection (b) and inserting the following:

    ``(b) Authorization for Loans.--
            ``(1) In general.--The Secretary may make or guarantee loans 
        under subtitles A and B from the Agricultural Credit Insurance 
        Fund provided for in section 309 in not more than the following 
        amounts:
                    ``(A) Fiscal year 1996.--For fiscal year 1996, 
                $3,085,000,000, of which--
                          ``(i) $585,000,000 shall be for direct loans, 
                      of which--
                                    ``(I) $85,000,000 shall be for farm 
                                ownership loans under subtitle A; and
                                    ``(II) $500,000,000 shall be for 
                                operating loans under subtitle B; and
                          ``(ii) $2,500,000,000 shall be for guaranteed 
                      loans, of which--
                                    ``(I) $600,000,000 shall be for 
                                guarantees of farm ownership loans under 
                                subtitle A; and

[[Page 110 STAT. 1099]]

                                    ``(II) $1,900,000,000 shall be for 
                                guarantees of operating loans under 
                                subtitle B.
                    ``(B) Fiscal year 1997.--For fiscal year 1997, 
                $3,165,000,000, of which--
                          ``(i) $585,000,000 shall be for direct loans, 
                      of which--
                                    ``(I) $85,000,000 shall be for farm 
                                ownership loans under subtitle A; and
                                    ``(II) $500,000,000 shall be for 
                                operating loans under subtitle B; and
                          ``(ii) $2,580,000,000 shall be for guaranteed 
                      loans, of which--
                                    ``(I) $630,000,000 shall be for 
                                guarantees of farm ownership loans under 
                                subtitle A; and
                                    ``(II) $1,950,000,000 shall be for 
                                guarantees of operating loans under 
                                subtitle B.
                    ``(C) Fiscal year 1998.--For fiscal year 1998, 
                $3,245,000,000, of which--
                          ``(i) $585,000,000 shall be for direct loans, 
                      of which--
                                    ``(I) $85,000,000 shall be for farm 
                                ownership loans under subtitle A; and
                                    ``(II) $500,000,000 shall be for 
                                operating loans under subtitle B; and
                          ``(ii) $2,660,000,000 shall be for guaranteed 
                      loans, of which--
                                    ``(I) $660,000,000 shall be for 
                                guarantees of farm ownership loans under 
                                subtitle A; and
                                    ``(II) $2,000,000,000 shall be for 
                                guarantees of operating loans under 
                                subtitle B.
                    ``(D) Fiscal year 1999.--For fiscal year 1999, 
                $3,325,000,000, of which--
                          ``(i) $585,000,000 shall be for direct loans, 
                      of which--
                                    ``(I) $85,000,000 shall be for farm 
                                ownership loans under subtitle A; and
                                    ``(II) $500,000,000 shall be for 
                                operating loans under subtitle B; and
                          ``(ii) $2,740,000,000 shall be for guaranteed 
                      loans, of which--
                                    ``(I) $690,000,000 shall be for 
                                guarantees of farm ownership loans under 
                                subtitle A; and
                                    ``(II) $2,050,000,000 shall be for 
                                guarantees of operating loans under 
                                subtitle B.
                    ``(E) Fiscal year 2000.--For fiscal year 2000, 
                $3,435,000,000, of which--
                          ``(i) $585,000,000 shall be for direct loans, 
                      of which--
                                    ``(I) $85,000,000 shall be for farm 
                                ownership loans under subtitle A; and
                                    ``(II) $500,000,000 shall be for 
                                operating loans under subtitle B; and
                          ``(ii) $2,850,000,000 shall be for guaranteed 
                      loans, of which--
                                    ``(I) $750,000,000 shall be for 
                                guarantees of farm ownership loans under 
                                subtitle A; and

[[Page 110 STAT. 1100]]

                                    ``(II) $2,100,000,000 shall be for 
                                guarantees of operating loans under 
                                subtitle B.
                    ``(F) Fiscal year 2001.--For fiscal year 2001, 
                $3,435,000,000, of which--
                          ``(i) $585,000,000 shall be for direct loans, 
                      of which--
                                    ``(I) $85,000,000 shall be for farm 
                                ownership loans under subtitle A; and
                                    ``(II) $500,000,000 shall be for 
                                operating loans under subtitle B; and
                          ``(ii) $2,850,000,000 shall be for guaranteed 
                      loans, of which--
                                    ``(I) $750,000,000 shall be for 
                                guarantees of farm ownership loans under 
                                subtitle A; and
                                    ``(II) $2,100,000,000 shall be for 
                                guarantees of operating loans under 
                                subtitle B.
                    ``(G) Fiscal year 2002.--For fiscal year 2002, 
                $3,435,000,000, of which--
                          ``(i) $585,000,000 shall be for direct loans, 
                      of which--
                                    ``(I) $85,000,000 shall be for farm 
                                ownership loans under subtitle A; and
                                    ``(II) $500,000,000 shall be for 
                                operating loans under subtitle B; and
                          ``(ii) $2,850,000,000 shall be for guaranteed 
                      loans, of which--
                                    ``(I) $750,000,000 shall be for 
                                guarantees of farm ownership loans under 
                                subtitle A; and
                                    ``(II) $2,100,000,000 shall be for 
                                guarantees of operating loans under 
                                subtitle B.
            ``(2) Beginning farmers and ranchers.--
                    ``(A) Direct loans.--
                          ``(i) Farm ownership loans.--
                                    ``(I) In general.--Of the amounts 
                                made available under paragraph (1) for 
                                direct farm ownership loans, the 
                                Secretary shall reserve 70 percent for 
                                qualified beginning farmers and 
                                ranchers.
                                    ``(II) Down payment loans.--Of the 
                                amounts reserved for a fiscal year under 
                                subclause (I), the Secretary shall 
                                reserve 60 percent for the down payment 
                                loan program under section 310E until 
                                April 1 of the fiscal year.
                          ``(ii) Operating loans.--Of the amounts made 
                      available under paragraph (1) for direct operating 
                      loans, the Secretary shall reserve for qualified 
                      beginning farmers and ranchers--
                                    ``(I) for each of fiscal years 1996 
                                through 1998, 25 percent;
                                    ``(II) for fiscal year 1999, 30 
                                percent; and
                                    ``(III) for each of fiscal years 
                                2000 through 2002, 35 percent.
                          ``(iii) Funds reserved until september 1.--
                      Except as provided in clause (i)(II), funds 
                      reserved for qualified beginning farmers or 
                      ranchers under this subparagraph for a fiscal year 
                      shall be reserved only until September 1 of the 
                      fiscal year.
                    ``(B) Guaranteed loans.--

[[Page 110 STAT. 1101]]

                          ``(i) Farm ownership loans.--Of the amounts 
                      made available under paragraph (1) for guarantees 
                      of farm ownership loans, the Secretary shall 
                      reserve 25 percent for qualified beginning farmers 
                      and ranchers.
                          ``(ii) Operating loans.--Of the amounts made 
                      available under paragraph (1) for guarantees of 
                      operating loans, the Secretary shall reserve 40 
                      percent for qualified beginning farmers and 
                      ranchers.
                          ``(iii) Funds reserved until april 1.--Funds 
                      reserved for qualified beginning farmers or 
                      ranchers under this subparagraph for a fiscal year 
                      shall be reserved only until April 1 of the fiscal 
                      year.
                    ``(C) Reserved funds for all qualified beginning 
                farmers and ranchers.--If a qualified beginning farmer 
                or rancher meets the eligibility criteria for receiving 
                a direct or guaranteed loan under section 302, 310E, or 
                311, the Secretary shall make or guarantee the loan if 
                sufficient funds reserved under this paragraph are 
                available to make or guarantee the loan.
            ``(3) Transfer for down payment loans.--
                    ``(A) In general.--Notwithstanding subsection (a), 
                subject to subparagraph (B)--
                          ``(i) beginning on August 1 of each fiscal 
                      year, the Secretary shall use available 
                      unsubsidized guaranteed farm operating loan funds 
                      to provide direct farm ownership loans approved by 
                      the Secretary to qualified beginning farmers and 
                      ranchers under the down payment loan program 
                      established under section 310E, if sufficient 
                      direct farm ownership loan funds are not otherwise 
                      available; and
                      <<NOTE: Effective date.>>     ``(ii) beginning on 
                      September 1 of each fiscal year, the Secretary 
                      shall use available unsubsidized guaranteed farm 
                      operating loan funds to provide direct farm 
                      ownership loans approved by the Secretary to 
                      qualified beginning farmers and ranchers, if 
                      sufficient direct farm ownership loan funds are 
                      not otherwise available.
                    ``(B) Limitation.--The Secretary shall limit the 
                transfer of funds under subparagraph (A) so that all 
                guaranteed farm operating loans that have been approved, 
                or will be approved, by the Secretary during the fiscal 
                year will be made to the extent of available amounts.
            ``(4) Transfer for credit sales of farm inventory 
        property.--
                    ``(A) In general.--Notwithstanding subsection (a), 
                subject to subparagraphs (B) and (C), beginning on 
                September 1 of each fiscal year, the Secretary may use 
                available funds made available under subtitle C for the 
                fiscal year to fund the credit sale of farm real estate 
                in the inventory of the Secretary.
                    ``(B) Supplemental appropriations.--The transfer 
                authority provided under subparagraph (A) shall not 
                apply to any funds made available to the Secretary for 
                any fiscal year under an Act making supplemental 
                appropriations.
                    ``(C) Limitation.--The Secretary shall limit the 
                transfer of funds under subparagraph (A) so that all 
                emergency disaster loans that have been approved, or 
                will be approved,

[[Page 110 STAT. 1102]]

                by the Secretary during the fiscal year will be made to 
                the extent of available amounts.''.

SEC. 642. CONTRACTS ON LOAN SECURITY PROPERTIES.

    Section 349 of the Consolidated Farm and Rural Development Act (7 
U.S.C. 1997) is amended--
            (1) by striking subsection (b) and inserting the following:

    ``(b) Contracts on Loan Security Properties.--Subject to subsection 
(c), the Secretary may enter into a contract related to real property 
for conservation, recreation, or wildlife purposes.'';
            (2) in subsection (c)--
                    (A) by striking ``(c) Such easement'' and all that 
                follows through ``if--'' and inserting the following:

    ``(c) Limitations.--The Secretary may enter into a contract under 
subsection (b) if--'';
                    (B) in paragraph (2), by adding ``and'' at the end;
                    (C) in paragraph (3)--
                          (i) by striking subparagraph (B);
                          (ii) by striking ``(3)(A)(i)'' and inserting 
                      ``(3)(A)'';
                          (iii) by striking ``Farmers Home 
                      Administration'' and inserting ``Secretary'';
                          (iv) by striking ``(ii) such easement'' and 
                      inserting ``(B) such contract''; and
                          (v) by striking ``; or'' and inserting a 
                      period; and
                    (D) by striking paragraph (4);
            (3) in subsection (d), by striking ``easement'' each place 
        it appears and inserting ``contract'';
            (4) in subsection (e)--
                    (A) in paragraph (1)--
                          (i) in the matter preceding subparagraph (A), 
                      by striking ``purchase any such easement from the 
                      borrower--'' and inserting ``reduce or forgive the 
                      outstanding debt of a borrower--'';
                          (ii) by striking ``easement'' each place it 
                      appears and inserting ``contract''; and
                          (iii) by striking ``Farmers Home 
                      Administration'' each place it appears and 
                      inserting ``Secretary''; and
                    (B) in paragraph (2)(A), by striking ``easement is 
                acquired'' and inserting ``contract is entered into'';
            (5) in subsection (f)--
                    (A) in paragraph (1), by striking ``acquire 
                easements'' and inserting ``enter into contracts''; and
                    (B) in paragraphs (2) and (3), by striking 
                ``easements'' each place it appears and inserting 
                ``contracts''; and
            (6) in subsection (g), by striking ``an easement acquired'' 
        and inserting ``a contract entered into''.

SEC. 643. LIST OF CERTIFIED LENDERS AND INVENTORY PROPERTY DEMONSTRATION 
            PROJECT.

    (a) In General.--Section 351 of the Consolidated Farm and Rural 
Development Act (7 U.S.C. 1999) is amended--
            (1) in subsection (f)--
                    (A) by striking ``Each Farmers Home Administration 
                county supervisor'' and inserting ``The Secretary'';
                    (B) by striking ``approved lenders'' and inserting 
                ``lenders''; and
                    (C) by striking ``the Farmers Home Administration''; 
                and

[[Page 110 STAT. 1103]]

            (2) by striking subsection (h).

    (b) Technical Amendment.--Section 1320 of the Food Security Act of 
1985 (Public Law 99-198; 7 U.S.C. 1999 note) is amended by striking 
``Effective only'' and all that follows through ``1995, the'' and 
inserting ``The''.

SEC. 644. HOMESTEAD PROPERTY.

    Section 352(c) of the Consolidated Farm and Rural Development Act (7 
U.S.C. 2000(c)) is amended--
            (1) in paragraph (1)(A), by striking ``90'' each place it 
        appears and inserting ``30''; and
            (2) in paragraph (6)--
                    (A) in the first sentence, by striking ``Within 30'' 
                and all that follows through ``title,'' and insert ``Not 
                later than the date of acquisition of the property 
                securing a loan made under this title (or, in the case 
                of real property in inventory on the date of enactment 
                of the Federal Agriculture Improvement and Reform Act of 
                1996, not later than 5 days after the date of enactment 
                of the Act),''; and
                    (B) by striking the second sentence.

SEC. 645. RESTRUCTURING.

    Section 353 of the Consolidated Farm and Rural Development Act (7 
U.S.C. 2001) is amended--
            (1) in subsection (c)--
                    (A) in paragraph (3), by striking subparagraph (C) 
                and inserting the following:
                    ``(C) Cash flow margin.--For the purpose of 
                assessing under subparagraph (A) the ability of a 
                borrower to meet debt obligations and continue farming 
                operations, the Secretary shall assume that the borrower 
                needs up to 110 percent of the amount indicated for 
                payment of farm operating expenses, debt service 
                obligations, and family living expenses.''; and
                    (B) by striking paragraph (6) and inserting the 
                following:
            ``(6) Termination of loan obligations.--The obligations of a 
        borrower to the Secretary under a loan shall terminate if--
                    ``(A) the borrower satisfies the requirements of 
                paragraphs (1) and (2) of subsection (b);
                    ``(B) the value of the restructured loan is less 
                than the recovery value; and
                    ``(C) not later than 90 days after receipt of the 
                notification described in paragraph (4)(B), the borrower 
                pays (or obtains third-party financing to pay) the 
                Secretary an amount equal to the current market 
                value.'';
            (2) by striking subsection (k); and
            (3) by redesignating subsections (l) through (p) as 
        subsections (k) through (o), respectively.

SEC. 646. TRANSFER OF INVENTORY LAND FOR CONSERVATION PURPOSES.

    Section 354 of the Consolidated Farm and Rural Development Act (7 
U.S.C. 2002) is amended--
            (1) in the matter preceding paragraph (1), by striking ``The 
        Secretary, without reimbursement,'' and inserting the following:

[[Page 110 STAT. 1104]]

    ``(a) In General.--Subject to subsection (b), the Secretary'';
            (2) by striking paragraph (2) and inserting the following:
            ``(2) that is eligible to be disposed of in accordance with 
        section 335; and''; and
            (3) by adding at the end the following:

    ``(b) Conditions.--The Secretary may not transfer any property or 
interest in property under subsection (a) unless--
            ``(1) at least 2 public notices are given of the transfer;
            ``(2) if requested, at least 1 public meeting is held prior 
        to the transfer; and
            ``(3) the Governor and at least 1 elected county official of 
        the State and county where the property is located are consulted 
        prior to the transfer.''.

SEC. 647. IMPLEMENTATION OF TARGET PARTICIPATION RATES.

    Section 355 of the Consolidated Farm and Rural Development Act (7 
U.S.C. 2003) is amended by adding at the end the following:
    ``(f) Implementation Consistent With Supreme Court Holding.--Not 
later than 180 days after the date of enactment of this subsection, the 
Secretary shall ensure that the implementation of this section is 
consistent with the holding of the Supreme Court in Adarand 
Constructors, Inc. v. Federico Pena, Secretary of Transportation, 115 S. 
Ct. 2097 (1995).''.

SEC. 648. DELINQUENT BORROWERS.

    (a) Payment of Interest as a Condition of Loan Servicing for 
Borrowers.--The Consolidated Farm and Rural Development Act (7 U.S.C. 
1921 et seq.) is amended by adding at the end the following:

``SEC. 372. <<NOTE: 7 USC 2008g.>>  PAYMENT OF INTEREST AS A CONDITION 
            OF LOAN SERVICING FOR BORROWERS.

    ``The Secretary may not reschedule or reamortize a loan for a 
borrower under this title who has not requested consideration under 
section 331D(e) unless the borrower pays a portion, as determined by the 
Secretary, of the interest due on the loan.''.
    (b) Loan and Loan Servicing Limitations.--The Consolidated Farm and 
Rural Development Act (7 U.S.C. 1921 et seq.) (as amended by subsection 
(a)) is amended by adding at the end the following:

``SEC. 373. <<NOTE: 7 USC 2008h.>>  LOAN AND LOAN SERVICING LIMITATIONS.

    ``(a) Delinquent Borrowers Prohibited From Obtaining Direct 
Operating Loans.--The Secretary may not make a direct operating loan 
under subtitle B to a borrower who is delinquent on any loan made or 
guaranteed under this title.
    ``(b) Loans Prohibited for Borrowers That Have Received Debt 
Forgiveness.--
            ``(1) In general.--Except as provided in paragraph (2), the 
        Secretary may not make or guarantee a loan under this title to a 
        borrower who received debt forgiveness on a loan made or 
        guaranteed under this title.
            ``(2) Exception.--The Secretary may make a direct or 
        guaranteed farm operating loan for paying annual farm or ranch 
        operating expenses of a borrower who was restructured with a 
        write-down under section 353.

    ``(c) No More Than 1 Debt Forgiveness For A Borrower On A Direct 
Loan.--The Secretary may not provide to a borrower debt forgiveness on a 
direct loan made under this title if the

[[Page 110 STAT. 1105]]

borrower has received debt forgiveness on another direct loan made under 
this title.''.

SEC. 649. SHORT FORM CERTIFICATION OF FARM PROGRAM BORROWER COMPLIANCE.

    The Consolidated Farm and Rural Development Act (7 U.S.C. 1921 et 
seq.) (as amended by section 648) is amended by adding at the end the 
following:

``SEC. 374. <<NOTE: 7 USC 2008i.>>  SHORT FORM CERTIFICATION OF FARM 
            PROGRAM BORROWER COMPLIANCE.

    ``The Secretary shall develop and utilize a consolidated short form 
for farm program borrowers to use in certifying compliance with any 
applicable provision of law (including a regulation) that serves as an 
eligibility prerequisite for a loan made under this title.''.

SEC. 650. <<NOTE: 7 USC 2001 note.>>  CREDIT STUDY.

    (a) <<NOTE: Reports.>>  In General.--The Secretary of Agriculture 
shall conduct a study and report to the Committee on Agriculture of the 
House of Representatives and the Committee on Agriculture, Nutrition, 
and Forestry of the Senate on the demand for and availability of credit 
in rural areas for agriculture, housing, and rural development.

    (b) Purpose.--The purpose of the study shall be to ensure that 
Congress has current and comprehensive information to consider as 
Congress deliberates on rural credit needs and the availability of 
credit to satisfy the needs of rural areas of the United States.
    (c) Items in Study.--In conducting the study, the Secretary shall 
base the study on the most current available data and analyze--
            (1) rural demand for credit from the Farm Credit System, the 
        ability of the Farm Credit System to meet the demand, and the 
        extent to which the Farm Credit System provides loans to satisfy 
        the demand;
            (2) rural demand for credit from the United States banking 
        system, the ability of banks to meet the demand, and the extent 
        to which banks provide loans to satisfy the demand;
            (3) rural demand for credit from the Secretary, the ability 
        of the Secretary to meet the demand, and the extent to which the 
        Secretary provides loans to satisfy the demand;
            (4) rural demand for credit from other Federal agencies, the 
        ability of the agencies to meet the demand, and the extent to 
        which the agencies provide loans to satisfy the demand;
            (5) what measure or measures exist to gauge the overall 
        demand for rural credit, the extent to which rural demand for 
        credit is satisfied, and what the measures have demonstrated;
            (6) a comparison of the interest rates and terms charged by 
        the Farm Credit System Farm Credit Banks, production credit 
        associations, and banks for cooperatives with the rates and 
        terms charged by the banks of the United States for credit of 
        comparable risk and maturity;
            (7) the advantages and disadvantages of the modernization 
        and expansion proposals of the Farm Credit System on the Farm 
        Credit System, the United States banking system, rural

[[Page 110 STAT. 1106]]

        users of credit, local rural communities, and the Federal 
        Government, including--
                    (A) any added risk to the safety and soundness of 
                the Farm Credit System that may result from approval of 
                a proposal; and
                    (B) any positive or adverse impacts on competition 
                between the Farm Credit System and the banks of the 
                United States in providing credit to rural users;
            (8) the nature and extent of the unsatisfied rural credit 
        need that the Farm Credit System proposals are supposed to 
        address and what aspects of the present Farm Credit System 
        prevent the Farm Credit System from meeting the need;
            (9) the advantages and disadvantages of the proposal by 
        commercial bankers to allow banks access to the Farm Credit 
        System as a funding source on the Farm Credit System, the United 
        States banking system, rural users of credit, local rural 
        communities, and the Federal Government, including--
                    (A) any added risk to the safety and soundness of 
                the Farm Credit System that may result from approval of 
                the proposal; and
                    (B) any positive or adverse impacts on competition 
                between the Farm Credit System and the banks of the 
                United States in providing credit to rural users; and
            (10) problems that commercial banks have in obtaining 
        capital for lending in rural areas, how access to Farm Credit 
        System funds would improve the availability of capital in rural 
        areas in ways that cannot be achieved in the system in existence 
        on the date of enactment of this Act, and the possible effects 
        on the viability of the Farm Credit System of granting banks 
        access to Farm Credit System funds.

    (d) Interagency Task Force.--In completing the study, the Secretary 
shall use, among other things, data and information obtained by the 
interagency task force on rural credit.

                     Subtitle E--General Provisions

SEC. 661. CONFORMING AMENDMENTS.

    (a) Section 307(a) of the Consolidated Farm and Rural Development 
Act (7 U.S.C. 1927(a)) is amended--
            (1) in paragraph (4), by striking ``304(b), 306(a)(1), and 
        310B'' and inserting ``306(a)(1) and 310B''; and
            (2) in paragraph (6)(B)--
                    (A) by striking clauses (i), (ii), (iv), and (vii);
                    (B) in clause (v), by adding ``and'' at the end;
                    (C) in clause (vi), by striking ``, and'' at the end 
                and inserting a period; and
                    (D) by redesignating clauses (iii), (v), and (vi) as 
                clauses (i), (ii), and (iii), respectively.

    (b) The second sentence of section 309(g)(1) of the Consolidated 
Farm and Rural Development Act (7 U.S.C. 1929(g)(1)) is amended by 
striking ``section 308,''.
    (c) Section 309A of the Consolidated Farm and Rural Development Act 
(7 U.S.C. 1929a) is amended--
            (1) in the second sentence of subsection (a), by striking 
        ``304(b), 306(a)(1), 306(a)(14), 310B, and 312(b)'' and 
        inserting ``306(a)(1), 306(a)(14), and 310B''; and

[[Page 110 STAT. 1107]]

            (2) in the first sentence of subsection (b), by striking 
        ``and section 308''.

    (d) Section 310B(d) of the Consolidated Farm and Rural Development 
Act (7 U.S.C. 1932(d)) is amended--
            (1) by striking ``sections 304(b), 310B, and 312(b)'' each 
        place it appears in paragraphs (2), (3), and (4) and inserting 
        ``this section''; and
            (2) in paragraph (6), by striking ``this section, section 
        304, or section 312'' and inserting ``this section''.

    (e) The first sentence of section 310D(a) of the Consolidated Farm 
and Rural Development Act (7 U.S.C. 1934(a)) is amended by striking 
``paragraphs (1) through (5) of section 303(a), or subparagraphs (A) 
through (E) of section 304(a)(1)'' and inserting ``section 303(a), or 
paragraphs (1) through (5) of section 304(a)''.
    (f) Section 311(b)(1) of the Consolidated Farm and Rural Development 
Act (7 U.S.C. 1941(b)(1)) is amended by striking ``and for the purposes 
specified in section 312''.
    (g) Section 316(a) of the Consolidated Farm and Rural Development 
Act (7 U.S.C. 1946(a)) is amended by striking paragraph (3).
    (h) Section 343 of the Consolidated Farm and Rural Development Act 
(7 U.S.C. 1991) is amended--
            (1) in subsection (a)(10), by striking ``recreation loan 
        (RL) under section 304,''; and
            (2) in subsection (b)--
                    (A) in the matter preceding paragraph (1), by 
                striking ``351(h),''; and
                    (B) by striking paragraph (4) and inserting the 
                following:
            ``(4) Preservation loan service program.--The term 
        `preservation loan service program' means homestead retention as 
        authorized under section 352.''.

    (i) The first sentence of section 344 of the Consolidated Farm and 
Rural Development Act (7 U.S.C. 1992) is amended by striking ``304(b), 
306(a)(1), 310B, 312(b), or 312(c)'' and inserting ``306(a)(1), 310B, or 
312(c)''.
    (j) Section 353(l) of the Consolidated Farm and Rural Development 
Act (as redesignated by section 645(3)) is amended by striking ``and 
subparagraphs (A)(i) and (C)(i) of section 335(e)(1),''.

SEC. 662. ELECTRONIC FILING OF EFFECTIVE FINANCING STATEMENTS UNDER THE 
            CLEAR TITLE PROVISIONS OF THE FOOD SECURITY ACT OF 1985.

    Section 1324(c)(4) of the Food Security Act of 1985 (7 U.S.C. 
1631(c)(4)) is amended--
            (1) in subparagraph (A), by striking ``thereof'' and 
        inserting ``of the statement, or, in the case of a State which 
        (under the applicable State law provisions of the Uniform 
        Commercial Code) allows the electronic filing of financing 
        statements without the signature of the debtor, is an 
        electronically reproduced copy of the statement''; and
            (2) in each of subparagraphs (B) and (C), by inserting 
        ``other than in the case of an electronically reproduced copy of 
        the statement,'' before ``is''.

[[Page 110 STAT. 1108]]

SEC. 663. <<NOTE: 7 USC 1922 note.>>  EFFECTIVE DATE.

    (a) In General.--Except as provided in subsection (b), the 
amendments made by this title shall become effective on the date of 
enactment of this Act.
    (b) Delayed Effective Dates.--The amendments made by sections 601, 
606, 611, 612, 622, 623, 625, 633, 640(1), 642, 645(1), 648(a), and 649 
shall become effective 90 days after the date of enactment of this Act.
    (c) Transition Provision.--The amendments made by sections 638 and 
644 shall not apply with respect to a complete application to acquire 
inventory property submitted prior to the date of enactment of this Act.
    (d) Regulations.--Notwithstanding any other provision of law, 
regulations to implement the amendments made by this title shall be 
published as interim final rules with request for comments and may be 
made effective immediately on publication.

                      TITLE VII--RURAL DEVELOPMENT

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

                      CHAPTER 1--GENERAL PROVISIONS

SEC. 701. RURAL INVESTMENT PARTNERSHIPS.

    Subtitle B of title XXIII of the Food, Agriculture, Conservation, 
and Trade Act of 1990 (7 U.S.C. 2007 et seq.) is repealed.

SEC. 702. WATER AND WASTE FACILITY FINANCING.

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

SEC. 703. RURAL WASTEWATER CIRCUIT RIDER PROGRAM.

    Section 2324 of the Food, Agriculture, Conservation, and Trade Act 
of 1990 (Public Law 101-624; 7 U.S.C. 1926 note) is repealed.

SEC. 704. TELEMEDICINE AND DISTANCE LEARNING SERVICES IN RURAL AREAS.

    Chapter 1 of subtitle D of title XXIII of the Food, Agriculture, 
Conservation, and Trade Act of 1990 (7 U.S.C. 950aaa et seq.) is amended 
to read as follows:

 ``CHAPTER 1--TELEMEDICINE AND DISTANCE LEARNING SERVICES IN RURAL AREAS

``SEC. 2331. <<NOTE: 7 USC 950aaa.>>  PURPOSE.

    ``The purpose of this chapter is to encourage and improve 
telemedicine services and distance learning services in rural areas 
through the use of telecommunications, computer networks, and related 
advanced technologies by students, teachers, medical professionals, and 
rural residents.

<<NOTE: 7 USC 950aaa-1.>> ``SEC. 2332. DEFINITIONS.

    ``In this chapter:

[[Page 110 STAT. 1109]]

            ``(1) Construct.--The term `construct' means to construct, 
        acquire, install, improve, or extend a facility or system.
            ``(2) Cost of money loan.--The term `cost of money loan' 
        means a loan made under this chapter bearing interest at a rate 
        equal to the then current cost to the Federal Government of 
        loans of similar maturity.
            ``(3) Secretary.--The term `Secretary' means the Secretary 
        of Agriculture.

``SEC. 2333. <<NOTE: 7 USC 950aaa-2.>>  TELEMEDICINE AND DISTANCE 
            LEARNING SERVICES IN RURAL AREAS.

    ``(a) Services to Rural Areas.--The Secretary may provide financial 
assistance for the purpose of financing the construction of facilities 
and systems to provide telemedicine services and distance learning 
services in rural areas.
    ``(b) Financial Assistance.--
            ``(1) In general.--Financial assistance shall consist of 
        grants or cost of money loans, or both.
            ``(2) Form.--The Secretary shall determine the portion of 
        the financial assistance provided to a recipient that consists 
        of grants and the portion that consists of cost of money loans 
        so as to result in the maximum feasible repayment to the Federal 
        Government of the financial assistance, based on the ability to 
        repay of the recipient and full utilization of funds made 
        available to carry out this chapter.

    ``(c) Recipients.--
            ``(1) In general.--The Secretary may provide financial 
        assistance under this chapter to--
                    ``(A) entities using telemedicine services or 
                distance learning services; and
                    ``(B) entities providing or proposing to provide 
                telemedicine service or distance learning service to 
                other persons at rates calculated to ensure that the 
                benefit of the financial assistance is passed through to 
                the other persons.
            ``(2) Electric or telecommunications borrowers.--
                    ``(A) Loans to borrowers.--Subject to subparagraph 
                (B), the Secretary may provide a cost of money loan 
                under this chapter to a borrower of an electric or 
                telecommunications loan under the Rural Electrification 
                Act of 1936 (7 U.S.C. 901 et seq.). A borrower receiving 
                a cost of money loan under this paragraph shall--
                          ``(i) make the funds provided available to 
                      entities that qualify under paragraph (1) for 
                      projects satisfying the requirements of this 
                      chapter;
                          ``(ii) use the funds provided to acquire, 
                      install, improve, or extend a system referred to 
                      in subsection (a); or
                          ``(iii) use the funds provided to install, 
                      improve, or extend a facility referred to in 
                      subsection (a).
                    ``(B) Limitations.--A borrower of an electric or 
                telecommunications loan under the Rural Electrification 
                Act of 1936 shall--
                          ``(i) make a system or facility funded under 
                      subparagraph (A) available to entities that 
                      qualify under paragraph (1); and

[[Page 110 STAT. 1110]]

                          ``(ii) neither retain from the proceeds of a 
                      loan provided under subparagraph (A), nor assess a 
                      qualifying entity under paragraph (1), any amount 
                      except as may be required to pay the actual costs 
                      incurred in administering the loan or making the 
                      system or facility available.
            ``(3) Appeal.--If the Secretary rejects the application of a 
        borrower who applies for a cost of money loan or grant under 
        this section, the borrower may appeal the decision to the 
        Secretary not later than 10 days after the borrower is notified 
        of the rejection.
            ``(4) Assistance to provide or improve services.--Financial 
        assistance may be provided under this chapter for a facility 
        regardless of the location of the facility if the Secretary 
        determines that the assistance is necessary to provide or 
        improve telemedicine services or distance learning services in a 
        rural area.

    ``(d) Priority.--The Secretary shall establish procedures to 
prioritize financial assistance under this chapter considering--
            ``(1) the need for the assistance in the affected rural 
        area;
            ``(2) the financial need of the applicant;
            ``(3) the population sparsity of the affected rural area;
            ``(4) the local involvement in the project serving the 
        affected rural area;
            ``(5) geographic diversity among the recipients of financial 
        assistance;
            ``(6) the utilization of the telecommunications facilities 
        of any telecommunications provider serving the affected rural 
        area;
            ``(7) the portion of total project financing provided by the 
        applicant from the funds of the applicant;
            ``(8) the portion of project financing provided by the 
        applicant with funds obtained from non-Federal sources;
            ``(9) the joint utilization of facilities financed by other 
        financial assistance;
            ``(10) the coordination of the proposed project with 
        regional projects or networks;
            ``(11) service to the greatest practical number of persons 
        within the general geographic area covered by the financial 
        assistance;
            ``(12) conformity with the State strategic plan as prepared 
        under section 381D of the Consolidated Farm and Rural 
        Development Act; and
            ``(13) other factors determined appropriate by the 
        Secretary.

    ``(e) <<NOTE: Federal Register, publication.>>  Maximum Amount of 
Assistance to Individual Recipients.--The Secretary may establish the 
maximum amount of financial assistance to be made available to an 
individual recipient for each fiscal year under this chapter, by 
publishing notice of the maximum amount in the Federal Register not more 
than 45 days after funds are made available for the fiscal year to carry 
out this chapter.

    ``(f) Use of Funds.--Financial assistance provided under this 
chapter shall be used for--
            ``(1) the development and acquisition of instructional 
        programming;
            ``(2) the development and acquisition, through lease or 
        purchase, of computer hardware and software, audio and visual

[[Page 110 STAT. 1111]]

        equipment, computer network components, telecommunications 
        terminal equipment, telecommunications transmission facilities, 
        data terminal equipment, or interactive video equipment, or 
        other facilities that would further telemedicine services or 
        distance learning services;
            ``(3) providing technical assistance and instruction for the 
        development or use of the programming, equipment, or facilities 
        referred to in paragraphs (1) and (2); or
            ``(4) other uses that are consistent with this chapter, as 
        determined by the Secretary.

    ``(g) Salaries and Expenses.--Notwithstanding subsection (f), 
financial assistance provided under this chapter shall not be used for 
paying salaries or administrative expenses.
    ``(h) Expediting Coordinated Telephone Loans.--
            ``(1) In general.--The Secretary may establish and carry out 
        procedures to ensure that expedited consideration and 
        determination is given to applications for loans and advances of 
        funds submitted by local exchange carriers under this chapter 
        and the Rural Electrification Act of 1936 (7 U.S.C. 901 et seq.) 
        to enable the exchange carriers to provide advanced 
        telecommunications services in rural areas in conjunction with 
        any other projects carried out under this chapter.
            ``(2) Deadline imposed on 
        secretary. <<NOTE: Notification.>> --Not later than 45 days 
        after the receipt of a completed application for an expedited 
        telephone loan under paragraph (1), the Secretary shall notify 
        the applicant in writing of the decision of the Secretary 
        regarding the application.

    ``(i) Notification of Local Exchange Carrier.--
            ``(1) Applicants.--Each applicant for a grant for a 
        telemedicine or distance learning project established under this 
        chapter shall notify the appropriate local telephone exchange 
        carrier regarding the application filed with the Secretary for 
        the grant.
            ``(2) Secretary.--The Secretary shall--
                    ``(A) publish notice of applications received for 
                grants under this chapter for telemedicine or distance 
                learning projects; and
                    ``(B) make the applications available for 
                inspection.

``SEC. 2334. <<NOTE: 7 USC 950aaa-3.>>  ADMINISTRATION.

    ``(a) Nonduplication.--The Secretary shall ensure that facilities 
constructed using financial assistance provided under this chapter do 
not duplicate adequate established telemedicine services or distance 
learning services.
    ``(b) Loan Maturity.--The maturities of cost of money loans shall be 
determined by the Secretary, based on the useful life of the facility 
being financed, except that the loan shall not be for a period of more 
than 10 years.
    ``(c) Loan Security and Feasibility.--The Secretary shall make a 
cost of money loan only if the Secretary determines that the security 
for the loan is reasonably adequate and that the loan will be repaid 
within the period of the loan.
    ``(d) Encouraging Consortia.--The Secretary shall encourage the 
development of consortia to provide telemedicine services or distance 
learning services through telecommunications in rural areas served by a 
telecommunications provider.

[[Page 110 STAT. 1112]]

    ``(e) Coordination With Other Agencies.--The Secretary shall 
coordinate, to the extent practicable, with other Federal and State 
agencies with similar grant or loan programs to pool resources for 
funding meritorious proposals in rural areas.
    ``(f) Informational Efforts.--The Secretary shall establish and 
implement procedures to carry out informational efforts to advise 
potential end users located in rural areas of each State about the 
program authorized by this chapter.

``SEC. 2335. <<NOTE: 7 USC 950aaa-4.>>  REGULATIONS.

    ``Not later than 180 days after the date of enactment of the Federal 
Agriculture Improvement and Reform Act of 1996, the Secretary shall 
issue regulations to carry out this chapter.

``SEC. 2335A. <<NOTE: 7 USC 950aaa-5.>>  AUTHORIZATION OF 
            APPROPRIATIONS.

    ``There are authorized to be appropriated to carry out this chapter 
$100,000,000 for each of fiscal years 1996 through 2002.''.

SEC. 705. LIMITATION ON AUTHORIZATION OF APPROPRIATIONS FOR RURAL 
            TECHNOLOGY GRANTS.

    Section 2347 of the Food, Agriculture, Conservation, and Trade Act 
of 1990 (Public Law 101-624; 104 Stat. 4034) is amended--
            (1) <<NOTE: 7 USC 1932.>>  by striking ``(a) In General.--
        ''; and
            (2) by striking subsection (b).

SEC. 706. DEMONSTRATION PROJECTS.

    Section 2348 of the Food, Agriculture, Conservation, and Trade Act 
of 1990 (7 U.S.C. 2662a) is repealed.

SEC. 707. MONITORING THE ECONOMIC PROGRESS OF RURAL AMERICA.

    Section 2382 of the Food, Agriculture, Conservation, and Trade Act 
of 1990 (Public Law 101-624; 13 U.S.C. 141 note) is repealed.

SEC. 708. ANALYSIS BY OFFICE OF TECHNOLOGY ASSESSMENT.

    Section 2385 of the Food, Agriculture, Conservation, and Trade Act 
of 1990 (Public Law 101-624; 7 U.S.C. 950aaa-4 note) is repealed.

SEC. 709. RURAL HEALTH INFRASTRUCTURE IMPROVEMENT.

    Section 2391 of the Food, Agriculture, Conservation, and Trade Act 
of 1990 (Public Law 101-624; 7 U.S.C. 2662 note) is repealed.

SEC. 710. CENSUS OF AGRICULTURE.

    Section 2392 of the Food, Agriculture, Conservation, and Trade Act 
of 1990 (Public Law 101-624; 104 Stat. 4057) <<NOTE: 13 USC 142 note.>>  
is repealed.

SEC. 711. <<NOTE: 15 USC 714 note.>>  STUDY OF THE TRANSPORTATION OF 
            FERTILIZER AND AGRICULTURAL CHEMICALS TO FARMERS.

    Section 2517 of the Food, Agriculture, Conservation, and Trade Act 
of 1990 (Public Law 101-624; 104 Stat. 4077) is repealed.

   CHAPTER 2--ALTERNATIVE AGRICULTURAL RESEARCH AND COMMERCIALIZATION

SEC. 721. DEFINITIONS.

    Section 1657(c) of the Food, Agriculture, Conservation, and Trade 
Act of 1990 (7 U.S.C. 5901(c)) is amended--
            (1) by striking paragraphs (3) and (4);

[[Page 110 STAT. 1113]]

            (2) by redesignating paragraph (5) as paragraph (3);
            (3) by redesignating paragraphs (6) through (12) as 
        paragraphs (7) through (13), respectively; and
            (4) by inserting after paragraph (3) (as redesignated by 
        paragraph (2)) the following:
            ``(4) Corporate board.--The term `Corporate Board' means the 
        Board of Directors of the Corporation described in section 1659.
            ``(5) Corporation.--The term `Corporation' means the 
        Alternative Agricultural Research and Commercialization 
        Corporation established under section 1658.
            ``(6) Executive director.--The term `Executive Director' 
        means the Executive Director of the Corporation appointed under 
        section 1659(e).''.

SEC. 722. ALTERNATIVE AGRICULTURAL RESEARCH AND COMMERCIALIZATION 
            CORPORATION.

    (a) In General.--Section 1658 of the Food, Agriculture, 
Conservation, and Trade Act of 1990 (7 U.S.C. 5902) is amended to read 
as follows:

``SEC. 1658. ALTERNATIVE AGRICULTURAL RESEARCH AND COMMERCIALIZATION 
            CORPORATION.

    ``(a) Establishment.--To carry out this subtitle, there is created a 
body corporate to be known as the Alternative Agricultural Research and 
Commercialization Corporation, which shall be an agency of the United 
States, within the Department of Agriculture, subject to the general 
supervision and direction of the Secretary, except as specifically 
provided for in this subtitle.
    ``(b) Purpose.--The purpose of the Corporation is to--
            ``(1) expedite the development and market penetration of 
        industrial, nonfood, nonfeed products from agricultural and 
        forestry materials; and
            ``(2) assist the private sector in bridging the gap between 
        the results of research into nonfood, nonfeed products and the 
        commercialization of the research.

    ``(c) Place of Incorporation. <<NOTE: District of Columbia.>> --The 
Corporation shall be incorporated in the District of Columbia.

    ``(d) Central Office.--The Secretary shall provide facilities for 
the principal office of the Corporation within the Washington, D.C., 
metropolitan area.
    ``(e) Wholly-Owned Government Corporation.--The Corporation shall be 
considered a wholly-owned government corporation in accordance with 
chapter 91 of title 31, United States Code.
    ``(f) General Powers.--In addition to any other powers granted to 
the Corporation under this subtitle, the Corporation--
            ``(1) shall have succession in its corporate name;
            ``(2) may adopt, alter, and rescind any bylaw and adopt and 
        alter a corporate seal, which shall be judicially noticed;
            ``(3) may enter into any agreement or contract with a person 
        or private or governmental agency, except that the Corporation 
        shall not provide any financial assistance unless specifically 
        authorized by this subtitle;
            ``(4) may lease, purchase, accept a gift or donation of, or 
        otherwise acquire, use, own, hold, improve, or otherwise deal in 
        or with, and sell, convey, mortgage, pledge, lease, exchange, or 
        otherwise dispose of, any property or interest in property, as 
        the Corporation considers necessary in the transaction of

[[Page 110 STAT. 1114]]

        the business of the Corporation, except that this paragraph 
        shall not provide authority for carrying out a program of real 
        estate investment;
            ``(5) may sue and be sued in the corporate name of the 
        Corporation, except that--
                    ``(A) no attachment, injunction, garnishment, or 
                similar process shall be issued against the Corporation 
                or property of the Corporation; and
                    ``(B) <<NOTE: Courts.>>  exclusive original 
                jurisdiction shall reside in the district courts of the 
                United States, but the Corporation may intervene in any 
                court in any suit, action, or proceeding in which the 
                Corporation has an interest;
            ``(6) may independently retain legal representation;
            ``(7) may provide for and designate such committees, and the 
        functions of the committees, as the Corporate Board considers 
        necessary or desirable;
            ``(8) may indemnify the Executive Director and other 
        officers of the Corporation, as the Corporate Board considers 
        necessary and desirable, except that the Executive Director and 
        officers shall not be indemnified for an act outside the scope 
        of employment;
            ``(9) may, with the consent of any board, commission, 
        independent establishment, or executive department of the 
        Federal Government, including any field service, use 
        information, services, facilities, officials, and employees in 
        carrying out this subtitle, and pay for the use, which payments 
        shall be transferred to the applicable appropriation account 
        that incurred the expense;
            ``(10) may obtain the services and fix the compensation of 
        any consultant and otherwise procure temporary and intermittent 
        services under section 3109(b) of title 5, United States Code;
            ``(11) may use the United States mails on the same terms and 
        conditions as the Executive agencies of the Federal Government;
            ``(12) shall have the rights, privileges, and immunities of 
        the United States with respect to the right to priority of 
        payment with respect to debts due from bankrupt, insolvent, or 
        deceased creditors;
            ``(13) may collect or compromise any obligations assigned to 
        or held by the Corporation, including any legal or equitable 
        rights accruing to the Corporation;
            ``(14) shall determine the character of, and necessity for, 
        obligations and expenditures of the Corporation and the manner 
        in which the obligations and expenditures shall be incurred, 
        allowed, and paid, subject to provisions of law specifically 
        applicable to Government corporations;
            ``(15) may make final and conclusive settlement and 
        adjustment of any claim by or against the Corporation or a 
        fiscal officer of the Corporation;
            ``(16) may sell assets, loans, and equity interests acquired 
        in connection with the financing of projects funded by the 
        Corporation; and
            ``(17) may exercise all other lawful powers necessarily or 
        reasonably related to the establishment of the Corporation to 
        carry out this subtitle and the powers, purposes, functions, 
        duties, and authorized activities of the Corporation.

[[Page 110 STAT. 1115]]

    ``(g) Specific Powers.--To carry out this subtitle, the Corporation 
may--
            ``(1) make grants to, and enter into cooperative agreements 
        and contracts with, eligible applicants for research, 
        development, and demonstration projects in accordance with 
        section 1660;
            ``(2) make loans and interest subsidy payments and invest 
        venture capital in accordance with section 1661;
            ``(3) collect and disseminate information concerning State, 
        regional, and local commercialization projects;
            ``(4) search for new nonfood, nonfeed products that may be 
        produced from agricultural commodities and for processes to 
        produce the products;
            ``(5) administer, maintain, and dispense funds from the Fund 
        to facilitate the conduct of activities under this subtitle; and
            ``(6) engage in other activities incident to carrying out 
        the functions of the Corporation.''.

    (b) Wholly-Owned Government Corporation.--Section 9101(3) of title 
31, United States Code, is amended--
            (1) by redesignating subparagraph (N) (relating to the 
        Uranium Enrichment Corporation) as subparagraph (O); and
            (2) by adding at the end the following:
                    ``(Q) the Alternative Agricultural Research and 
                Commercialization Corporation.''.

    (c) Conforming Amendment.--Section 211(b)(5) of the Department of 
Agriculture Reorganization Act of 1994 (7 U.S.C. 6911(b)(5)) is amended 
by striking ``Alternative Agricultural Research and Commercialization 
Board'' and inserting ``Corporate Board of the Alternative Agricultural 
Research and Commercialization Corporation''.

SEC. 723. BOARD OF DIRECTORS, EMPLOYEES, AND FACILITIES.

    (a) In General.--Section 1659 of the Food, Agriculture, 
Conservation, and Trade Act of 1990 (7 U.S.C. 5903) is amended to read 
as follows:

``SEC. 1659. BOARD OF DIRECTORS, EMPLOYEES, AND FACILITIES.

    ``(a) In General.--The powers of the Corporation shall be vested in 
a Corporate Board.
    ``(b) Members of the Corporate Board.--The Corporate Board shall 
consist of 11 members as follows:
            ``(1) The Under Secretary of Agriculture for Rural 
        Development.
            ``(2) The Under Secretary of Agriculture for Research, 
        Education, and Economics.
            ``(3) 5 members appointed by the Secretary, of whom--
                    ``(A) at least 1 member shall be a representative of 
                the leading scientific disciplines relevant to the 
                activities of the Corporation;
                    ``(B) at least 1 member shall be a producer or 
                processor of agricultural commodities;
                    ``(C) at least 1 member shall be a person who is 
                privately engaged in the commercialization of new 
                nonfood, nonfeed products from agricultural commodities; 
                and
                    ``(D) at least 1 member shall have expertise in 
                financial management.

[[Page 110 STAT. 1116]]

        A different member shall be appointed pursuant to each 
        subparagraph of this paragraph.
            ``(4) 2 members appointed by the Secretary who--
                    ``(A) have expertise in areas of applied research 
                relating to the development or commercialization of new 
                nonfood, nonfeed products; and
                    ``(B) shall be appointed from a group of at least 4 
                individuals nominated by the Director of the National 
                Science Foundation if the nominations are made not later 
                than 60 days after the date a vacancy occurs.
            ``(5) 2 members appointed by the Secretary who--
                    ``(A) have expertise in financial and managerial 
                matters; and
                    ``(B) shall be appointed from a group of at least 4 
                individuals nominated by the Secretary of Commerce if 
                the nominations are made not later than 60 days after 
                the date a vacancy occurs.

    ``(c) Responsibilities of the Corporate Board.--
            ``(1) In general.--The Corporate Board shall--
                    ``(A) be responsible for the general supervision of 
                the Corporation and Regional Centers established under 
                section 1663;
                    ``(B) determine (in consultation with Regional 
                Centers) high priority commercialization areas to 
                receive assistance under section 1663;
                    ``(C) review any grant, contract, or cooperative 
                agreement to be made or entered into by the Corporation 
                under section 1660 and any financial assistance to be 
                provided under section 1661;
                    ``(D) make the final decision, by majority vote, on 
                whether and how to provide assistance to an applicant; 
                and
                    ``(E) develop and establish a budget plan and a 
                long-term operating plan to carry out this subtitle.
            ``(2) Authority of the secretary.--
                    ``(A) In general.--The Secretary shall vacate and 
                remand to the Corporate Board for reconsideration any 
                decision made pursuant to paragraph (1)(D) if the 
                Secretary determines that there has been a violation of 
                subsection (j), or any conflict of interest provisions 
                of the bylaws of the Corporate Board, with respect to 
                the decision.
                    ``(B) Reasons.--In the case of any violation and 
                referral of a funding decision to the Corporate Board, 
                the Secretary shall inform the Corporate Board of the 
                reasons for any remand pursuant to subparagraph (A).

    ``(d) Chairperson.--The members of the Corporate Board shall select 
a Chairperson from among the members of the Corporate Board. The term of 
office of the Chairperson shall be 2 years. The members referred to in 
paragraphs (1) and (2) of subsection (b) may not serve as Chairperson.
    ``(e) Executive Director.--
            ``(1) Appointment.--The Corporate Board shall appoint an 
        Executive Director, subject to the approval of the Secretary.
            ``(2) Duties.--The Executive Director shall be the chief 
        executive officer of the Corporation, with such power and 
        authority as may be conferred by the Corporate Board.

[[Page 110 STAT. 1117]]

            ``(3) Compensation.--The Executive Director shall receive 
        basic pay at the rate provided for level IV of the Executive 
        Schedule under section 5315 of title 5, United States Code.

    ``(f) Officers.--The Corporate Board shall establish the offices and 
appoint the officers of the Corporation, including a Secretary, and 
define the duties of the officers in a manner consistent with this 
subtitle.
    ``(g) Meetings.--The Corporate Board shall meet at least 3 times 
each fiscal year at the call of the Chairperson or at the request of the 
Executive Director. The location of the meetings shall be subject to 
approval of the Executive Director. A quorum of the Corporate Board 
shall consist of a majority of the members. The decisions of the 
Corporate Board shall be made by majority vote.
    ``(h) Term; Vacancies.--
            ``(1) In general.--The term of office of a member of the 
        Corporate Board shall be 4 years, except that the members 
        initially appointed shall be appointed to serve staggered terms. 
        A member appointed to fill a vacancy for an unexpired term may 
        be appointed only for the remainder of the term. A vacancy on 
        the Corporate Board shall be filled in the same manner as the 
        original appointment. The Secretary may remove a member of the 
        Corporate Board only for cause.
            ``(2) Transition measure.--The Secretary may appoint to the 
        Corporate Board an individual who, on the day before the date of 
        enactment of the Federal Agriculture Improvement and Reform Act 
        of 1996, was serving on the former Alternative Agricultural 
        Research and Commercialization Board, for a term that does not 
        exceed the term for which the individual was appointed to the 
        former Board.

    ``(i) Compensation.--A member of the Corporate Board who is an 
officer or employee of the United States shall not receive any 
additional compensation by reason of service on the Corporate Board. Any 
other member shall receive, for each day (including travel time) the 
member is engaged in the performance of the functions of the Corporate 
Board, compensation at a rate not to exceed the daily equivalent of the 
annual rate in effect for Level IV of the Executive Schedule. A member 
of the Corporate Board shall be reimbursed for travel, subsistence, and 
other necessary expenses incurred by the member in the performance of 
the duties of the member.
    ``(j) Conflict of Interest; Financial Disclosure.--
            ``(1) Conflict of interest.--Except as provided in paragraph 
        (3), no member of the Corporate Board shall vote on any matter 
        respecting any application, contract, claim, or other particular 
        matter pending before the Corporation, in which, to the 
        knowledge of the member, the member, spouse, or child of the 
        member, partner, or organization in which the member is serving 
        as officer, director, trustee, partner, or employee, or any 
        person or organization with whom the member is negotiating or 
        has any arrangement concerning prospective employment, has a 
        financial interest.
            ``(2) Violations.--Violation of paragraph (1) by a member of 
        the Corporate Board shall be cause for removal of the member, 
        but shall not impair or otherwise affect the validity of any 
        otherwise lawful action by the Corporation in which the member 
        participated.

[[Page 110 STAT. 1118]]

            ``(3) Exceptions.--The prohibitions contained in paragraph 
        (1) shall not apply if a member of the Corporate Board advises 
        the Corporate Board of the nature of the particular matter in 
        which the member proposes to participate, and if the member 
        makes a full disclosure of the financial interest, prior to any 
        participation, and the Corporate Board determines, by majority 
        vote, that the financial interest is too remote or too 
        inconsequential to affect the integrity of the member's services 
        to the Corporation in that matter. The member involved shall not 
        vote on the determination.
            ``(4) Financial disclosure.--A Board member shall be subject 
        to the financial disclosure requirements set forth in subchapter 
        B of chapter XVI of title 5, Code of Federal Regulations (or any 
        corresponding or similar regulation or ruling), applicable to a 
        special Government employee (as defined in section 202(a) of 
        title 18, United States Code).

    ``(k) Delegation of Authority.--
            ``(1) In general.--The Corporate Board may, by resolution, 
        delegate to the Chairperson, the Executive Director, or any 
        other officer or employee any function, power, or duty assigned 
        to the Corporation under this subtitle, other than a function, 
        power, or duty expressly vested in the Corporate Board by 
        subsections (c) through (n).
            ``(2) Prohibition on delegation.--Notwithstanding any other 
        law, the Secretary and any other officer or employee of the 
        United States shall not make any delegation to the Corporate 
        Board, the Chairperson, the Executive Director, or the 
        Corporation of any power, function, or authority not expressly 
        authorized by this subtitle, unless the delegation is made 
        pursuant to an authority in law that expressly makes reference 
        to this section.
            ``(3) Reorganization act.--Notwithstanding any other law, 
        the President (through authorities provided under chapter 9 of 
        title 5, United States Code) may not authorize the transfer to 
        the Corporation of any power, function, or authority in addition 
        to powers, functions, and authorities provided by law.

    ``(l) Bylaws.--Notwithstanding section 1658(f)(2), the Corporate 
Board shall adopt, and may from time to time amend, any bylaw that is 
necessary for the proper management and functioning of the Corporation. 
The Corporate Board shall not adopt any bylaw that has not been reviewed 
and approved by the Secretary.
    ``(m) Organization.--The Corporate Board shall provide a system of 
organization to fix responsibility and promote efficiency.
    ``(n) Personnel and Facilities of Corporation.--
            ``(1) Appointment and compensation of personnel.--The 
        Corporation may select and appoint officers, attorneys, 
        employees, and agents, who shall be vested with such powers and 
        duties as the Corporation may determine.
            ``(2) Use of facilities and services of the department of 
        agriculture.--Notwithstanding any other provision of law, to 
        perform the responsibilities of the Corporation under this 
        subtitle, the Corporation may partially or jointly utilize the 
        facilities of and the services of employees of the Department of 
        Agriculture, without cost to the Corporation.
            ``(3) Government employment laws.--An officer or employee of 
        the Corporation shall be subject to all laws of the United 
        States relating to governmental employment.''.

[[Page 110 STAT. 1119]]

    (b) Conforming Amendment.--Section 5315 of title 5, United States 
Code, is amended by adding at the end the following:
            ``Executive Director of the Alternative Agricultural 
        Research and Commercialization Corporation.''.

SEC. 724. RESEARCH AND DEVELOPMENT GRANTS, CONTRACTS, AND AGREEMENTS.

    Section 1660 of the Food, Agriculture, Conservation, and Trade Act 
of 1990 (7 U.S.C. 5904) is amended--
            (1) by striking ``Center'' each place it appears and 
        inserting ``Corporation'';
            (2) in subsection (c), by striking ``Board'' and inserting 
        ``Corporate Board''; and
            (3) in subsection (f), by striking ``non-Center'' and 
        inserting ``non-Corporation''.

SEC. 725. COMMERCIALIZATION ASSISTANCE.

    Section 1661 of the Food, Agriculture, Conservation, and Trade Act 
of 1990 (7 U.S.C. 5905) is amended--
            (1) by striking ``Center'' each place it appears and 
        inserting ``Corporation'';
            (2) by striking ``Board'' each place it appears and 
        inserting ``Corporate Board'';
            (3) by striking subsection (c);
            (4) by redesignating subsections (d), (e), and (f) as 
        subsections (c), (d), and (e), respectively; and
            (5) in subsection (c) (as so redesignated)--
                    (A) in the subsection heading of paragraph (1), by 
                striking ``director'' and inserting ``executive 
                director''; and
                    (B) by striking ``Director'' each place it appears 
                and inserting ``Executive Director''.

SEC. 726. GENERAL RULES REGARDING THE PROVISION OF ASSISTANCE.

    Section 1662 of the Food, Agriculture, Conservation, and Trade Act 
of 1990 (7 U.S.C. 5906) is amended--
            (1) by striking ``Center'' each place it appears (except in 
        subsection (b)) and inserting ``Corporation'';
            (2) by striking ``Board'' each place it appears and 
        inserting ``Corporate Board''; and
            (3) in subsection (b)--
                    (A) in the second sentence, by striking ``Board, a 
                Regional Center, or the Advisory Council'' and inserting 
                ``Board or a Regional Center''; and
                    (B) by striking the third sentence.

SEC. 727. REGIONAL CENTERS.

    Section 1663 of the Food, Agriculture, Conservation, and Trade Act 
of 1990 (7 U.S.C. 5907) is amended--
            (1) by striking ``Board'' each place it appears and 
        inserting ``Corporate Board'';
            (2) in subsection (e)(8), by striking ``Center'' and 
        inserting ``Corporation''; and
            (3) in subsection (f)--
                    (A) in paragraph (2), by striking ``in consultation 
                with the Advisory Council appointed under section 
                1661(c)''; and

[[Page 110 STAT. 1120]]

                    (B) by striking paragraphs (3) and (4) and inserting 
                the following:
            ``(3) Recommendation.--The Regional Director, based on the 
        comments of the reviewers, shall make and submit a 
        recommendation to the Board, which shall not be binding on the 
        Board.''.

SEC. 728. ALTERNATIVE AGRICULTURAL RESEARCH AND COMMERCIALIZATION 
            REVOLVING FUND.

    Section 1664 of the Food, Agriculture, Conservation, and Trade Act 
of 1990 (7 U.S.C. 5908) is amended to read as follows:

``SEC. 1664. ALTERNATIVE AGRICULTURAL RESEARCH AND COMMERCIALIZATION 
            REVOLVING FUND.

    ``(a) Establishment.--There is established in the Treasury of the 
United States a revolving fund to be known as the Alternative 
Agricultural Research and Commercialization Revolving Fund. The Fund 
shall be available to the Corporation, without fiscal year limitation, 
to carry out this subtitle.
    ``(b) Contents of Fund.--There shall be deposited in the Fund--
            ``(1) such amounts as may be appropriated or transferred to 
        support programs and activities of the Corporation;
            ``(2) payments received from any source for products, 
        services, or property furnished in connection with the 
        activities of the Corporation;
            ``(3) fees and royalties collected by the Corporation from 
        licensing or other arrangements relating to commercialization of 
        products developed through projects funded in whole or part by 
        grants, contracts, or cooperative agreements executed by the 
        Corporation;
            ``(4) proceeds from the sale of assets, loans, and equity 
        interests made in furtherance of the purposes of the 
        Corporation;
            ``(5) donations or contributions accepted by the Corporation 
        to support authorized programs and activities; and
            ``(6) any other funds acquired by the Corporation.

    ``(c) Funding Allocations.--Funding of projects and activities under 
this subtitle shall be subject to the following restrictions:
            ``(1) Of the total amount of funds made available for a 
        fiscal year under this subtitle--
                    ``(A) not more than the lesser of 15 percent or 
                $3,000,000 may be set aside to be used for authorized 
                administrative expenses of the Corporation;
                    ``(B) not more than 1 percent may be set aside to be 
                used for generic studies and specific reviews of 
                individual proposals for financial assistance; and
                    ``(C) except as provided in subsection (e), not less 
                than 84 percent shall be set aside to be awarded to 
                qualified applicants who file project applications with, 
                or respond to requests for proposals from, the 
                Corporation under sections 1660 and 1661.
            ``(2) Any funds remaining uncommitted at the end of a fiscal 
        year shall be credited to the Fund and added to the total 
        program funds available to the Corporation for the next fiscal 
        year.

    ``(d) Authorized Administrative Expenses.--For the purposes of this 
section, authorized administrative expenses shall include

[[Page 110 STAT. 1121]]

all ordinary and necessary expenses, including all compensation for 
personnel and consultants, expenses for computer usage, or space needs 
of the Corporation and similar expenses. Funds authorized for 
administrative expenses shall not be available for the acquisition of 
real property.
    ``(e) Project Monitoring.--The Corporate Board may establish, in the 
bylaws of the Corporate Board, that a percentage (which shall not exceed 
1 percent) of the funds provided under subsection (c) for any 
commercialization project shall be expended to ensure that project funds 
are being utilized in accordance with the project agreement.
    ``(f) Termination of the Fund.--On expiration of the authority 
provided by this subtitle, all assets (after payment of all outstanding 
obligations) of the Fund shall revert to the general fund of the 
Treasury.
    ``(g) Authorization of Appropriations; Capitalization.--
            ``(1) Authorization of appropriation.--There are authorized 
        to be appropriated to the Fund $75,000,000 for each of fiscal 
        years 1996 through 2002.
            ``(2) Capitalization.--The Executive Director may pay in as 
        capital of the Corporation, out of dollar receipts made 
        available through annual appropriations, $75,000,000 for each of 
        fiscal years 1996 through 2002. On the payment of an amount of 
        capital by the Executive Director, the Corporation shall issue 
        an equivalent amount of capital stock to the Secretary of the 
        Treasury.
            ``(3) Transfer.--All obligations, assets, and related rights 
        and responsibilities of the former Alternative Agricultural 
        Research and Commercialization Center established under former 
        section 1658 of this Act (as in effect on the day before the 
        date of enactment of the Federal Agriculture Improvement and 
        Reform Act of 1996) are transferred to the Corporation.''.

SEC. 729. PROCUREMENT PREFERENCES FOR PRODUCTS RECEIVING CORPORATION 
            ASSISTANCE.

    Subtitle G of title XVI of the Food, Agriculture, Conservation, and 
Trade Act of 1990 (7 U.S.C. 5901 et seq.) is amended by adding at the 
end the following:

``SEC. 1665. <<NOTE: 7 USC 5909.>>  PROCUREMENT OF ALTERNATIVE 
            AGRICULTURAL RESEARCH AND COMMERCIALIZATION PRODUCTS.

    ``(a) Definition of Executive Agency.--In this section, the term 
`executive agency' has the meaning provided the term in section 4(1) of 
the Office of Federal Procurement Policy Act (41 U.S.C. 403(1)).
    ``(b) Procurement.--To further the achievement of the purposes 
specified in section 1657(b), an executive agency may, for any 
procurement involving the acquisition of property, establish set-asides 
and preferences for property that has been commercialized with 
assistance provided under this subtitle.
    ``(c) Set-Asides.--Procurements solely for property may be set aside 
exclusively for products developed with commercialization assistance 
provided under section 1661.
    ``(d) Preferences.--Preferences for property developed with 
assistance provided under this subtitle in procurements involving the 
acquisition of property may be--
            ``(1) a price preference, if the procurement is solely for 
        property, of not greater than a percentage to be determined

[[Page 110 STAT. 1122]]

        within the sole discretion of the head of the procuring agency; 
        or
            ``(2) a technical evaluation preference included as an award 
        factor or subfactor as determined within the sole discretion of 
        the head of the procuring agency.

    ``(e) Notice.--Each competitive solicitation or invitation for bids 
selected by an executive agency for a set-aside or preference under this 
section shall contain a provision notifying offerors where a list of 
products eligible for the set-aside or preference may be obtained.
    ``(f) Eligibility.--Offerors shall receive the set-aside or 
preference required under this section if, in the case of products 
developed with financial assistance under--
            ``(1) section 1660, less than 10 years have elapsed since 
        the expiration of the grant, cooperative agreement, or contract;
            ``(2) paragraph (1) or (2) of section 1661(a), less than 5 
        years have elapsed since the date the loan was made or insured;
            ``(3) section 1661(a)(3), less than 5 years have elapsed 
        since the date of sale of any remaining government equity 
        interest in the company; or
            ``(4) section 1661(a)(4), less than 5 years have elapsed 
        since the date of the final payment on the repayable grant.''.

SEC. 730. <<NOTE: 7 USC 5902 note.>>  BUSINESS PLAN AND FEASIBILITY 
            STUDY AND REPORT.

    (a) Business Plan.--Not later than 180 days after the date of 
enactment of this Act, the Alternative Agricultural Research and 
Commercialization Corporation established by section 1658 of the Food, 
Agriculture, Conservation, and Trade Act of 1990 shall--
            (1) develop a 5-year business plan pursuant to section 
        1659(c)(1)(E) of the Act; and
            (2) submit the plan to the Secretary of Agriculture, the 
        Committee on Agriculture of the House of Representatives, and 
        the Committee on Agriculture, Nutrition, and Forestry of the 
        Senate.

    (b) Feasibility Study and Report.--
            (1) Study.--The Secretary of Agriculture shall conduct a 
        study of, and prepare a report on, the continued feasibility of 
        the Alternative Agricultural Research and Commercialization 
        Corporation. In conducting the study, the Secretary shall 
        examine options for privatizing the Corporation and converting 
        the Corporation to a Government-sponsored enterprise.
            (2) Report.--Not later than December 31, 2001, the Secretary 
        shall transmit the report required by paragraph (1) to the 
        Committee on Agriculture of the House of Representatives and the 
        Committee on Agriculture, Nutrition, and Forestry of the Senate.

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

                      CHAPTER 1--GENERAL PROVISIONS

SEC. 741. WATER AND WASTE FACILITY LOANS AND GRANTS.

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

[[Page 110 STAT. 1123]]

            (1) in the first sentence of paragraph (2), by striking 
        ``$500,000,000'' and inserting ``$590,000,000'';
            (2) by striking paragraph (7) and inserting the following:
            ``(7) Definition of rural and rural areas.--For the purpose 
        of water and waste disposal grants and direct and guaranteed 
        loans provided under paragraphs (1) and (2), the terms `rural' 
        and `rural area' mean a city, town, or unincorporated area that 
        has a population of no more than 10,000 inhabitants.'';
            (3) by striking paragraphs (9), (10), and (11) and inserting 
        the following:
            ``(9) Conformity with state drinking water standards.--No 
        Federal funds shall be made available under this section for a 
        water system unless the Secretary determines that the water 
        system will make significant progress toward meeting the 
        standards established under title XIV of the Public Health 
        Service Act (commonly known as the `Safe Drinking Water Act') 
        (42 U.S.C. 300f et seq.).
            ``(10) Conformity with federal and state water pollution 
        control standards.--No Federal funds shall be made available 
        under this section for a water treatment discharge or waste 
        disposal system unless the Secretary determines that the 
        effluent from the system conforms with applicable Federal and 
        State water pollution control standards.
            ``(11) Rural business opportunity grants.--
                    ``(A) In general.--The Secretary may make grants, 
                not to exceed $1,500,000 annually, to public bodies, 
                private nonprofit community development corporations or 
                entities, or such other agencies as the Secretary may 
                select to enable the recipients--
                          ``(i) to identify and analyze business 
                      opportunities, including opportunities in export 
                      markets, that will use local rural economic and 
                      human resources;
                          ``(ii) to identify, train, and provide 
                      technical assistance to existing or prospective 
                      rural entrepreneurs and managers;
                          ``(iii) to establish business support centers 
                      and otherwise assist in the creation of new rural 
                      businesses, the development of methods of 
                      financing local businesses, and the enhancement of 
                      the capacity of local individuals and entities to 
                      engage in sound economic activities;
                          ``(iv) to conduct regional, community, and 
                      local economic development planning and 
                      coordination, and leadership development; and
                          ``(v) to establish centers for training, 
                      technology, and trade that will provide training 
                      to rural businesses in the utilization of 
                      interactive communications technologies to develop 
                      international trade opportunities and markets.
                    ``(B) Criteria.--In awarding the grants, the 
                Secretary shall consider, among other criteria to be 
                established by the Secretary--
                          ``(i) the extent to which the applicant 
                      provides development services in the rural service 
                      area of the applicant; and

[[Page 110 STAT. 1124]]

                          ``(ii) the capability of the applicant to 
                      accomplish the activities described in the 
                      relevant clauses of subparagraph (A).
                    ``(C) Coordination.--The Secretary shall ensure, to 
                the maximum extent practicable, that assistance provided 
                under this paragraph is coordinated with and delivered 
                in cooperation with similar services or assistance 
                provided to rural residents by the Cooperative State 
                Research, Education, and Extension Service or other 
                Federal agencies.
                    ``(D) Authorization of appropriations.--There are 
                authorized to be appropriated to carry out this 
                paragraph $7,500,000 for each of fiscal years 1996 
                through 2002.'';
            (4) by striking paragraphs (14) and (15);
            (5) by redesignating paragraphs (16) through (20) as 
        paragraphs (14) through (18), respectively; and
            (6) in paragraph (14) (as so redesignated)--
                    (A) by striking ``(14)(A) The'' and inserting the 
                following:
            ``(14) Rural water and wastewater technical assistance and 
        training programs.--
                    ``(A) In general.--The'';
                    (B) in subparagraph (A)--
                          (i) by striking ``(i) identify'' and inserting 
                      the following:
                          ``(i) identify'';
                          (ii) by striking ``(ii) prepare'' and 
                      inserting the following:
                          ``(ii) prepare''; and
                          (iii) by striking ``(iii) improve'' and 
                      inserting the following:
                          ``(iii) improve'';
                    (C) in subparagraph (B), by striking ``(B) In'' and 
                inserting the following:
                    ``(B) Selection priority.--In''; and
                    (D) in subparagraph (C)--
                          (i) by striking ``(C) Not'' and inserting the 
                      following:
                    ``(C) Funding.--Not''; and
                          (ii) by striking ``2 per centum of any funds 
                      provided in appropriations Acts'' and inserting 
                      ``3 percent of any funds appropriated''.

    (b) Conforming Amendment.--The second sentence of section 309A(a) of 
the Consolidated Farm and Rural Development Act (7 U.S.C. 1929a(a)) (as 
amended by section 661(c)(1)) is amended by striking ``, 306(a)(14),''.

SEC. 742. EMERGENCY COMMUNITY WATER ASSISTANCE GRANT PROGRAM FOR SMALL 
            COMMUNITIES.

    Section 306A of the Consolidated Farm and Rural Development Act (7 
U.S.C. 1926a) is amended--
            (1) in subsection (e)--
                    (A) in paragraph (1)(A), by striking ``15,000'' and 
                inserting ``10,000''; and
                    (B) in paragraph (2), by striking ``5,000'' and 
                inserting ``3,000''; and
            (2) by striking subsection (i) and inserting the following:

[[Page 110 STAT. 1125]]

    ``(i) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section $35,000,000 for each of fiscal 
years 1996 through 2002.''.

SEC. 743. EMERGENCY COMMUNITY WATER ASSISTANCE GRANT PROGRAM FOR 
            SMALLEST COMMUNITIES.

    Section 306B of the Consolidated Farm and Rural Development Act (7 
U.S.C. 1926b) is repealed.

SEC. 744. AGRICULTURAL CREDIT INSURANCE FUND.

    Section 309(f) of the Consolidated Farm and Rural Development Act (7 
U.S.C. 1929(f)) is amended--
            (1) by striking paragraph (1); and
            (2) by redesignating paragraphs (2) through (6) as 
        paragraphs (1) through (5), respectively.

SEC. 745. RURAL DEVELOPMENT INSURANCE FUND.

    Section 309A(g) of the Consolidated Farm and Rural Development Act 
(7 U.S.C. 1929a(g)) is amended--
            (1) by striking paragraph (1); and
            (2) by redesignating paragraphs (2) through (8) as 
        paragraphs (1) through (7), respectively.

SEC. 746. INSURED WATERSHED AND RESOURCE CONSERVATION AND DEVELOPMENT 
            LOANS.

    Section 310A of the Consolidated Farm and Rural Development Act (7 
U.S.C. 1931) is repealed.

SEC. 747. RURAL INDUSTRIALIZATION ASSISTANCE.

    (a) In General.--Section 310B of the Consolidated Farm and Rural 
Development Act (7 U.S.C. 1932) is amended--
            (1) in the first sentence of subsection (a)--
                    (A) by striking ``and'' at the end of clause (2); 
                and
                    (B) by inserting before the period the following: 
                ``, and (4) to facilitate economic opportunity for 
                industries undergoing adjustment from terminated Federal 
                agricultural price and income support programs or 
                increased competition from foreign trade'';
            (2) in subsection (b), by striking ``(b)(1)'' and all that 
        follows through ``(2) The'' and inserting the following:

    ``(b) Solid Waste Management Grants.--The'';
            (3) in subsection (c)--
                    (A) by striking ``(c)(1) The'' and inserting the 
                following:

    ``(c) Rural Business Enterprise Grants.--
            ``(1) In general.--The'';
                    (B) in paragraph (1), by inserting ``(including 
                nonprofit entities)'' after ``private business 
                enterprises'';
                    (C) in paragraph (2)--
                          (i) by striking ``(2) The'' and inserting the 
                      following:
            ``(2) Passenger transportation services or facilities.--
        The''; and
                          (ii) by striking ``make grants'' and inserting 
                      ``award grants on a competitive basis''; and
                    (D) by adding at the end the following:
            ``(3) Grants to aid industries in adjusting to terminated 
        federal agricultural programs or increased foreign 
        competition.--The Secretary may make grants under this section 
        to facilitate economic opportunity for industries

[[Page 110 STAT. 1126]]

        undergoing adjustment from terminated Federal agricultural price 
        and income support programs or increased competition from 
        foreign trade.'';
            (4) by striking subsection (e) and inserting the following:

    ``(e) Rural Cooperative Development Grants.--
            ``(1) Definitions.--In this subsection:
                    ``(A) Nonprofit institution.--The term `nonprofit 
                institution' means any organization or institution, 
                including an accredited institution of higher education, 
                no part of the net earnings of which inures, or may 
                lawfully inure, to the benefit of any private 
                shareholder or individual.
                    ``(B) United states.--The term `United States' means 
                the several States, the District of Columbia, the 
                Commonwealth of Puerto Rico, the Virgin Islands, Guam, 
                American Samoa, and the other territories and 
                possessions of the United States.
            ``(2) Grants.--The Secretary shall make grants under this 
        subsection to nonprofit institutions for the purpose of enabling 
        the institutions to establish and operate centers for rural 
        cooperative development.
            ``(3) Goals.--The goals of a center funded under this 
        subsection shall be to facilitate the creation of jobs in rural 
        areas through the development of new rural cooperatives, value 
        added processing, and rural businesses.
            ``(4) Application.--Any nonprofit institution seeking a 
        grant under paragraph (2) shall submit to the Secretary an 
        application containing a plan for the establishment and 
        operation by the institution of a center or centers for 
        cooperative development. The Secretary may approve the 
        application if the plan contains the following:
                    ``(A) A provision that substantiates that the center 
                will effectively serve rural areas in the United States.
                    ``(B) A provision that the primary objective of the 
                center will be to improve the economic condition of 
                rural areas through cooperative development.
                    ``(C) A description of the activities that the 
                center will carry out to accomplish the objective. The 
                activities may include the following:
                          ``(i) Programs for applied research and 
                      feasibility studies that may be useful to 
                      individuals, cooperatives, small businesses, and 
                      other similar entities in rural areas served by 
                      the center.
                          ``(ii) Programs for the collection, 
                      interpretation, and dissemination of information 
                      that may be useful to individuals, cooperatives, 
                      small businesses, and other similar entities in 
                      rural areas served by the center.
                          ``(iii) Programs providing training and 
                      instruction for individuals, cooperatives, small 
                      businesses, and other similar entities in rural 
                      areas served by the center.
                          ``(iv) Programs providing loans and grants to 
                      individuals, cooperatives, small businesses, and 
                      other similar entities in rural areas served by 
                      the center.
                          ``(v) Programs providing technical assistance, 
                      research services, and advisory services to 
                      individuals, cooperatives, small businesses, and 
                      other similar entities in rural areas served by 
                      the center.

[[Page 110 STAT. 1127]]

                          ``(vi) Programs providing for the coordination 
                      of services and sharing of information among the 
                      center.
                    ``(D) A description of the contributions that the 
                activities are likely to make to the improvement of the 
                economic conditions of the rural areas for which the 
                center will provide services.
                    ``(E) Provisions that the center, in carrying out 
                the activities, will seek, where appropriate, the 
                advice, participation, expertise, and assistance of 
                representatives of business, industry, educational 
                institutions, the Federal Government, and State and 
                local governments.
                    ``(F) Provisions that the center will take all 
                practicable steps to develop continuing sources of 
                financial support for the center, particularly from 
                sources in the private sector.
                    ``(G) Provisions for--
                          ``(i) monitoring and evaluating the activities 
                      by the nonprofit institution operating the center; 
                      and
                          ``(ii) accounting for money received by the 
                      institution under this section.
            ``(5) Awarding grants.--Grants made under paragraph (2) 
        shall be made on a competitive basis. In making grants under 
        paragraph (2), the Secretary shall give preference to grant 
        applications providing for the establishment of centers for 
        rural cooperative development that--
                    ``(A) demonstrate a proven track record in 
                administering a nationally coordinated, regionally or 
                State-wide operated project;
                    ``(B) demonstrate previous expertise in providing 
                technical assistance in rural areas;
                    ``(C) demonstrate the ability to assist in the 
                retention of businesses, facilitate the establishment of 
                cooperatives and new cooperative approaches, and 
                generate employment opportunities that will improve the 
                economic conditions of rural areas;
                    ``(D) demonstrate the ability to create horizontal 
                linkages among businesses within and among various 
                sectors in rural areas of the United States and vertical 
                linkages to domestic and international markets;
                    ``(E) commit to providing technical assistance and 
                other services to underserved and economically 
                distressed areas in rural areas of the United States; 
                and
                    ``(F) commit to providing greater than a 25 percent 
                matching contribution with private funds and in-kind 
                contributions.
            ``(6) 1-year grants; authority to approve grant for 1 
        additional year without application.--The Secretary shall make 
        grants under this subsection for a period of 1 year. The 
        Secretary shall evaluate programs receiving assistance under 
        this subsection. If the Secretary determines it to be in the 
        best interest of the program, the Secretary may award an 
        additional grant to the program for the immediately succeeding 
        year without application for the grant.
            ``(7) Technical assistance to prevent excessive unemployment 
        or underemployment.--In carrying out this subsection, the 
        Secretary may provide technical assistance to alleviate or 
        prevent conditions of excessive unemployment,

[[Page 110 STAT. 1128]]

        underemployment, outmigration, or low employment growth in 
        economically distressed rural areas that the Secretary 
        determines have a substantial need for the assistance. The 
        assistance may include planning and feasibility studies, 
        management and operational assistance, and studies evaluating 
        the need for development potential of projects that increase 
        employment and improve economic growth in the areas.
            ``(8) Grants to defray administrative costs.--The Secretary 
        may make grants to defray not to exceed 75 percent of the costs 
        incurred by organizations and public bodies to carry out 
        projects for which grants or loans are made under this 
        subsection. For purposes of determining the non-Federal share of 
        the costs, the Secretary shall consider contributions in cash 
        and in kind, fairly evaluated, including premises, equipment, 
        and services.
            ``(9) Authorization of appropriations.--There are authorized 
        to be appropriated to carry out this subsection $50,000,000 for 
        each of fiscal years 1996 through 2002.'';
            (5) by striking subsections (f), (g), (h), and (i);
            (6) by redesignating subsection (j) as subsection (f); and
            (7) by adding at the end the following:

    ``(g) Loan Guarantees for the Purchase of Cooperative Stock.--
            ``(1) Definition of farmer.--In this subsection, the term 
        `farmer' means any farmer that the Secretary determines is a 
        family farmer.
            ``(2) Loan guarantees.--The Secretary may guarantee loans 
        under this section to individual farmers for the purpose of 
        purchasing start-up capital stock of a farmer cooperative 
        established for the purpose of processing an agricultural 
        commodity.
            ``(3) Eligibility.--To be eligible for a loan guarantee 
        under this subsection, a farmer must produce the agricultural 
        commodity that will be processed by the cooperative.''.

    (b) Conforming Amendments.--
            (1) Clause (iii) of section 307(a)(6)(B) of the Consolidated 
        Farm and Rural Development Act (7 U.S.C. 1927(a)(6)(B)) (as 
        redesignated by section 661(a)(2)) is amended by striking 
        ``subsections (d) and (e) of section 310B'' and inserting 
        ``section 310B(d)''.
            (2) Section 232(c)(2) of the Department of Agriculture 
        Reorganization Act of 1994 (7 U.S.C. 6942(c)(2)) is amended--
                    (A) by striking ``310B(b)(2)'' and inserting 
                ``310B(b)''; and
                    (B) by striking ``1932(b)(2)'' and inserting 
                ``1932(b)''.
            (3) Section 233(b) of the Department of Agriculture 
        Reorganization Act of 1994 (7 U.S.C. 6943(b)) is amended--
                    (A) by striking paragraph (2); and
                    (B) by redesignating paragraph (3) as paragraph (2).

SEC. 748. ADMINISTRATION.

    Section 331(b)(4) of the Consolidated Farm and Rural Development Act 
(7 U.S.C. 1981(b)(4)) is amended--
            (1) by inserting after ``claims'' the following: 
        ``(including debts and claims arising from loan guarantees)'';
            (2) by striking ``Farmers Home Administration or'' and 
        inserting ``Consolidated Farm Service Agency, Rural Utilities

[[Page 110 STAT. 1129]]

        Service, Rural Housing Service, Rural Business-Cooperative 
        Service, or a successor agency, or''; and
            (3) <<NOTE: Notification.>>  by inserting after ``activities 
        under the Housing Act of 1949.'' the following: ``In the case of 
        a security instrument entered into under the Rural 
        Electrification Act of 1936 (7 U.S.C. 901 et seq.), the 
        Secretary shall notify the Attorney General of the intent of the 
        Secretary to exercise the authority of the Secretary under this 
        paragraph.''.

SEC. 749. AUTHORIZATION OF APPROPRIATIONS.

    (a) In General.--Section 338 of the Consolidated Farm and Rural 
Development Act (7 U.S.C. 1988) is amended--
            (1) by striking subsections (b), (c), (d), and (e); and
            (2) by redesignating subsection (f) as subsection (b).

    (b) Conforming Amendments.--
            (1) The first sentence of section 309(g)(1) of the 
        Consolidated Farm and Rural Development Act (7 U.S.C. 
        1929(g)(1)) is amended by inserting after ``section 338(c)'' the 
        following: ``(before the amendment made by section 749(a)(1) of 
        the Federal Agriculture Improvement and Reform Act of 1996)''.
            (2) Section 343(b) of the Consolidated Farm and Rural 
        Development Act (7 U.S.C. 1991(b)) is amended by striking 
        ``338(f),'' and inserting ``338(b),''.

SEC. 750. TESTIMONY BEFORE CONGRESSIONAL COMMITTEES.

    Section 345 of the Consolidated Farm and Rural Development Act (7 
U.S.C. 1993) is repealed.

SEC. 751. PROHIBITION ON USE OF LOANS FOR CERTAIN PURPOSES.

    Section 363 of the Consolidated Farm and Rural Development Act (7 
U.S.C. 2006e) is amended by adding at the end the following: ``This 
section shall not apply to a loan made or guaranteed under this title 
for a utility line.''.

SEC. 752. RURAL DEVELOPMENT CERTIFIED LENDERS PROGRAM.

    The Consolidated Farm and Rural Development Act is amended by 
inserting after section 363 (7 U.S.C. 2006e) the following:

``SEC. 364. <<NOTE: 7 USC 2006f.>>  RURAL DEVELOPMENT CERTIFIED LENDERS 
            PROGRAM.

    ``(a) Certified Lenders Program.--
            ``(1) In general.--The Secretary may establish a program 
        under which the Secretary may guarantee a loan for any rural 
        development program that is made by a lender certified by the 
        Secretary.
            ``(2) Certification requirements.--The Secretary may certify 
        a lender if the lender meets such criteria as the Secretary may 
        prescribe in regulations, including the ability of the lender to 
        properly make, service, and liquidate the guaranteed loans of 
        the lender.
            ``(3) Condition of certification.--As a condition of 
        certification, the Secretary may require the lender to undertake 
        to service the guaranteed loan using standards that are not less 
        stringent than generally accepted banking standards concerning 
        loan servicing that are used by prudent commercial or 
        cooperative lenders.
            ``(4) Guarantee.--Notwithstanding any other provision of 
        law, the Secretary may guarantee not more than 80 percent of a 
        loan made by a certified lender described in paragraph

[[Page 110 STAT. 1130]]

        (1), if the borrower of the loan meets the eligibility 
        requirements and such other criteria for the loan guarantee that 
        are established by the Secretary.
            ``(5) Certifications.--With respect to loans to be 
        guaranteed, the Secretary may permit a certified lender to make 
        appropriate certifications (as provided in regulations issued by 
        the Secretary)--
                    ``(A) relating to issues such as creditworthiness, 
                repayment ability, adequacy of collateral, and 
                feasibility of the operation; and
                    ``(B) that the borrower is in compliance with all 
                requirements of law, including regulations issued by the 
                Secretary.
            ``(6) Relationship to other requirements.--This subsection 
        shall not affect the responsibility of the Secretary to 
        determine eligibility, review financial information, and 
        otherwise assess an application.

    ``(b) Preferred Certified Lenders Program.--
            ``(1) In general.--The Secretary may establish a preferred 
        certified lenders program for lenders who establish their--
                    ``(A) knowledge of, and experience under, the 
                program established under subsection (a);
                    ``(B) knowledge of the regulations concerning the 
                particular guaranteed loan program; and
                    ``(C) proficiency related to the certified lender 
                program requirements.
            ``(2) Additional lending institutions.--The Secretary may 
        certify any lending institution as a preferred certified lender 
        if the institution meets such additional criteria as the 
        Secretary may prescribe by regulation.
            ``(3) Revocation of designation.--The designation of a 
        lender as a preferred certified lender shall be revoked if the 
        Secretary determines that the lender is not adhering to the 
        rules and regulations applicable to the program or if the loss 
        experiences of the preferred certified lender are greater than 
        other preferred certified lenders, except that the suspension or 
        revocation shall not affect any outstanding guarantee.
            ``(4) Condition of certification.--As a condition of the 
        preferred certification, the Secretary shall require the lender 
        to undertake to service the loan guaranteed by the Secretary 
        under this subsection using generally accepted banking standards 
        concerning loan servicing employed by prudent commercial or 
        cooperative lenders. The Secretary shall, at least annually, 
        monitor the performance of each preferred certified lender to 
        ensure that the conditions of the certification are being met.
            ``(5) Effect of preferred lender certification.--
        Notwithstanding any other provision of law, the Secretary may--
                    ``(A) guarantee not more than 80 percent of any 
                approved loan made by a preferred certified lender as 
                described in this subsection, if the borrower meets the 
                eligibility requirements and such other criteria as may 
                be applicable to loans guaranteed by the Secretary; and
                    ``(B) permit preferred certified lenders to make all 
                decisions, with respect to loans to be guaranteed by the 
                Secretary under this subsection relating to 
                creditworthiness, the closing, monitoring, collection, 
                and liquidation of loans, and to accept appropriate 
                certifications, as provided in regulations issued by the 
                Secretary, that the borrower is

[[Page 110 STAT. 1131]]

                in compliance with all requirements of law and 
                regulations issued by the Secretary.''.

SEC. 753. SYSTEM FOR DELIVERY OF CERTAIN RURAL DEVELOPMENT PROGRAMS.

    (a) In General.--Section 365 of the Consolidated Farm and Rural 
Development Act (7 U.S.C. 2008) is repealed.
    (b) Conforming Amendments.--
            (1) Section 2375 of the Food, Agriculture, Conservation, and 
        Trade Act of 1990 (7 U.S.C. 6613) is amended--
                    (A) in subsection (e), by striking ``, as defined in 
                section 365(b)(2) of the Consolidated Farm and Rural 
                Development Act,''; and
                    (B) by adding at the end the following:

    ``(g) Definition of Designated Rural Development Program.--In this 
section, the term `designated rural development program' means a program 
carried out under section 304(b), 306(a), or 310B(e) of the Consolidated 
Farm and Rural Development Act (7 U.S.C. 1924(b), 1926(a), and 1932(e)) 
for which funds are available at any time during the fiscal year.''.
            (2) Paragraph (2) of section 233(b) of the Department of 
        Agriculture Reorganization Act of 1994 (7 U.S.C. 6943(b)) (as 
        redesignated by section 747(b)(3)(B)) is amended by striking 
        ``sections 365 through 369 of the Consolidated Farm and Rural 
        Development Act (7 U.S.C. 2008-2008d)'' and inserting ``section 
        369 of the Consolidated Farm and Rural Development Act (7 U.S.C. 
        2008d)''.

SEC. 754. STATE RURAL ECONOMIC DEVELOPMENT REVIEW PANEL.

    Section 366 of the Consolidated Farm and Rural Development Act (7 
U.S.C. 2008a) is repealed.

SEC. 755. LIMITED TRANSFER AUTHORITY OF LOAN AMOUNTS.

    Section 367 of the Consolidated Farm and Rural Development Act (7 
U.S.C. 2008b) is repealed.

SEC. 756. ALLOCATION AND TRANSFER OF LOAN GUARANTEE AUTHORITY.

    Section 368 of the Consolidated Farm and Rural Development Act (7 
U.S.C. 2008c) is repealed.

SEC. 757. WATER SYSTEMS FOR RURAL AND NATIVE VILLAGES IN ALASKA.

    The Consolidated Farm and Rural Development Act is amended by 
inserting after section 306C (7 U.S.C. 1926c) the following:

``SEC. 306D. <<NOTE: 7 USC 1926d.>>  WATER SYSTEMS FOR RURAL AND NATIVE 
            VILLAGES IN ALASKA.

    ``(a) In General.--The Secretary may make grants to the State of 
Alaska for the benefit of rural or Native villages in Alaska to provide 
for the development and construction of water and wastewater systems to 
improve the health and sanitation conditions in those villages.
    ``(b) Matching Funds.--To be eligible to receive a grant under 
subsection (a), the State of Alaska shall provide equal matching funds 
from non-Federal sources.
    ``(c) Consultation With the State of Alaska.--The Secretary shall 
consult with the State of Alaska on a method of prioritizing

[[Page 110 STAT. 1132]]

the allocation of grants under subsection (a) according to the needs of, 
and relative health and sanitation conditions in, each village.
    ``(d) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section $15,000,000 for each of fiscal 
years 1996 through 2002.''.

SEC. 758. APPLICATION REQUIREMENTS RELATING TO WATER AND WASTE DISPOSAL 
            LOAN AND GRANT PROGRAMS.

    Section 306(a) of the Consolidated Farm and Rural Development Act (7 
U.S.C. 926(a)) <<NOTE: 7 USC 1926.>>  is amended by inserting after 
paragraph (4) the following:
            ``(5) Application requirements.--Not earlier than 60 days 
        before a preliminary application is filed for a loan under 
        paragraph (1) or a grant under paragraph (2) for a water or 
        waste disposal purpose, a notice of the intent of the applicant 
        to apply for the loan or grant shall be published in a general 
        circulation newspaper. The selection of engineers for a project 
        design shall be done by a request for proposals by the 
        applicant.''.

SEC. 759. NATIONAL SHEEP INDUSTRY IMPROVEMENT CENTER.

    The Consolidated Farm and Rural Development Act (as amended by 
section 649) is amended by adding at the end the following:

``SEC. 375. <<NOTE: Goats. 7 USC 2008j.>>  NATIONAL SHEEP INDUSTRY 
            IMPROVEMENT CENTER.

    ``(a) Definitions.--In this section:
            ``(1) Board.--The term `Board' means the Board of Directors 
        established under subsection (f).
            ``(2) Center.--The term `Center' means the National Sheep 
        Industry Improvement Center established under subsection (b).
            ``(3) Eligible entity.--The term `eligible entity' means an 
        entity that promotes the betterment of the United States sheep 
        or goat industries and that is--
                    ``(A) a public, private, or cooperative 
                organization;
                    ``(B) an association, including a corporation not 
                operated for profit;
                    ``(C) a federally recognized Indian Tribe; or
                    ``(D) a public or quasi-public agency.
            ``(4) Fund.--The term `Fund' means the National Sheep 
        Industry Improvement Center Revolving Fund established under 
        subsection (e).

    ``(b) Establishment of Center.--The Secretary shall establish a 
National Sheep Industry Improvement Center.
    ``(c) Purposes.--The purposes of the Center shall be to--
            ``(1) promote strategic development activities and 
        collaborative efforts by private and State entities to maximize 
        the impact of Federal assistance to strengthen and enhance 
        production and marketing of sheep or goat products in the United 
        States;
            ``(2) optimize the use of available human capital and 
        resources within the sheep or goat industries;
            ``(3) provide assistance to meet the needs of the sheep or 
        goat industry for infrastructure development, business 
        development, production, resource development, and market and 
        environmental research;
            ``(4) advance activities that empower and build the capacity 
        of the United States sheep or goat industry to design unique

[[Page 110 STAT. 1133]]

        responses to the special needs of the sheep or goat industries 
        on both a regional and national basis; and
            ``(5) adopt flexible and innovative approaches to solving 
        the long-term needs of the United States sheep or goat industry.

    ``(d) Strategic Plan.--
            ``(1) In general.--The Center shall submit to the Secretary 
        an annual strategic plan for the delivery of financial 
        assistance provided by the Center.
            ``(2) Requirements.--A strategic plan shall identify--
                    ``(A) goals, methods, and a benchmark for measuring 
                the success of carrying out the plan and how the plan 
                relates to the national and regional goals of the 
                Center;
                    ``(B) the amount and sources of Federal and non-
                Federal funds that are available for carrying out the 
                plan;
                    ``(C) funding priorities;
                    ``(D) selection criteria for funding; and
                    ``(E) a method of distributing funding.

    ``(e) Revolving Fund.--
            ``(1) Establishment.--There is established in the Treasury 
        the National Sheep Industry Improvement Center Revolving Fund. 
        The Fund shall be available to the Center, without fiscal year 
        limitation, to carry out the authorized programs and activities 
        of the Center under this section.
            ``(2) Contents of fund.--There shall be deposited in the 
        Fund--
                    ``(A) such amounts as may be appropriated, 
                transferred, or otherwise made available to support 
                programs and activities of the Center;
                    ``(B) payments received from any source for 
                products, services, or property furnished in connection 
                with the activities of the Center;
                    ``(C) fees and royalties collected by the Center 
                from licensing or other arrangements relating to 
                commercialization of products developed through projects 
                funded, in whole or part, by grants, contracts, or 
                cooperative agreements executed by the Center;
                    ``(D) proceeds from the sale of assets, loans, and 
                equity interests made in furtherance of the purposes of 
                the Center;
                    ``(E) donations or contributions accepted by the 
                Center to support authorized programs and activities; 
                and
                    ``(F) any other funds acquired by the Center.
            ``(3) Use of fund.--
                    ``(A) In general.--The Center may use amounts in the 
                Fund to make grants and loans to eligible entities in 
                accordance with a strategic plan submitted under 
                subsection (d).
                    ``(B) Continued existence.--The Center shall manage 
                the Fund in a manner that ensures that sufficient 
                amounts are available in the Fund to carry out 
                subsection (c).
                    ``(C) Diverse area.--The Center shall, to the 
                maximum extent practicable, use the Fund to serve broad 
                geographic areas and regions of diverse production.
                    ``(D) Variety of loans and grants.--The Center 
                shall, to the maximum extent practicable, use the Fund 
                to provide a variety of grants and intermediate- and 
                long-term loans.

[[Page 110 STAT. 1134]]

                    ``(E) Administration.--The Center may not use more 
                than 3 percent of the amounts in the Fund for a fiscal 
                year for the administration of the Center.
                    ``(F) Influencing legislation.--None of the amounts 
                in the Fund may be used to influence legislation.
                    ``(G) Accounting.--To be eligible to receive amounts 
                from the Fund, an entity must agree to account for the 
                amounts using generally accepted accounting principles.
                    ``(H) Uses of fund.--The Center may use amounts in 
                the Fund to--
                          ``(i) participate with Federal and State 
                      agencies in financing activities that are in 
                      accordance with a strategic plan submitted under 
                      subsection (d), including participation with 
                      several States in a regional effort;
                          ``(ii) participate with other public and 
                      private funding sources in financing activities 
                      that are in accordance with the strategic plan, 
                      including participation in a regional effort;
                          ``(iii) provide security for, or make 
                      principal or interest payments on, revenue or 
                      general obligation bonds issued by a State, if the 
                      proceeds from the sale of the bonds are deposited 
                      in the Fund;
                          ``(iv) accrue interest;
                          ``(v) guarantee or purchase insurance for 
                      local obligations to improve credit market access 
                      or reduce interest rates for a project that is in 
                      accordance with the strategic plan; or
                          ``(vi) sell assets, loans, and equity 
                      interests acquired in connection with the 
                      financing of projects funded by the Center.
            ``(4) Loans.--
                    ``(A) Rate.--A loan from the Fund may be made at an 
                interest rate that is below the market rate or may be 
                interest free.
                    ``(B) Term.--The term of a loan may not exceed the 
                shorter of--
                          ``(i) the useful life of the activity 
                      financed; or
                          ``(ii) 40 years.
                    ``(C) Source of repayment.--The Center may not make 
                a loan from the Fund unless the recipient establishes an 
                assured source of repayment.
                    ``(D) Proceeds.--All payments of principal and 
                interest on a loan made from the Fund shall be deposited 
                into the Fund.
            ``(5) Maintenance of effort.--The Center shall use the Fund 
        only to supplement and not to supplant Federal, State, and 
        private funds expended for rural development.
            ``(6) Funding.--
                    ``(A) Deposit of funds.--All Federal and non-Federal 
                amounts received by the Center to carry out this section 
                shall be deposited in the Fund.
                    ``(B) Mandatory funds.--Out of any moneys in the 
                Treasury not otherwise appropriated, the Secretary of 
                the Treasury shall provide to the Center not to exceed 
                $20,000,000 to carry out this section.

[[Page 110 STAT. 1135]]

                    ``(C) Additional funds.--In addition to any funds 
                provided under subparagraph (B), there is authorized to 
                be appropriated $30,000,000 to carry out this section.
                    ``(D) Privatization.--No additional Federal funds 
                shall be used to carry out this section beginning on the 
                earlier of--
                          ``(i) the date that is 10 years after the date 
                      of enactment of this section; or
                          ``(ii) the day after a total of $50,000,000 
                      has been made available under subparagraphs (B) 
                      and (C) to carry out this section.

    ``(f) Board of Directors.--
            ``(1) In general.--The management of the Center shall be 
        vested in a Board of Directors.
            ``(2) Powers.--The Board shall--
                    ``(A) be responsible for the general supervision of 
                the Center;
                    ``(B) review any grant, loan, contract, or 
                cooperative agreement to be made or entered into by the 
                Center and any financial assistance provided to the 
                Center;
                    ``(C) make the final decision, by majority vote, on 
                whether and how to provide assistance to an applicant; 
                and
                    ``(D) develop and establish a budget plan and a 
                long-term operating plan to carry out the goals of the 
                Center.
            ``(3) Composition.--The Board shall be composed of--
                    ``(A) 7 voting members, of whom--
                          ``(i) 4 members shall be active producers of 
                      sheep or goats in the United States;
                          ``(ii) 2 members shall have expertise in 
                      finance and management; and
                          ``(iii) 1 member shall have expertise in lamb, 
                      wool, goat, or goat product marketing; and
                    ``(B) 2 nonvoting members, of whom--
                          ``(i) 1 member shall be the Under Secretary of 
                      Agriculture for Rural Development; and
                          ``(ii) 1 member shall be the Under Secretary 
                      of Agriculture for Research, Education, and 
                      Economics.
            ``(4) Nomination.--
                    ``(A) Nominating body.--The Secretary shall appoint 
                the voting members of the Board from nominations 
                submitted by organizations described in subparagraph 
                (B).
                    ``(B) National organizations.--A national 
                organization is described in this subparagraph if the 
                organization--
                          ``(i) consists primarily of active sheep or 
                      goat producers in the United States; and
                          ``(ii) has as the primary interest of the 
                      organization the production of sheep or goats in 
                      the United States.
            ``(5) Term of office.--
                    ``(A) In general.--Subject to subparagraph (B), the 
                term of office of a voting member of the Board shall be 
                3 years.
                    ``(B) Staggered initial terms.--The initial voting 
                members of the Board (other than the chairperson of the 
                initially established Board) shall serve for staggered 
                terms of 1, 2, and 3 years, as determined by the 
                Secretary.

[[Page 110 STAT. 1136]]

                    ``(C) Reelection.--A voting member may be reelected 
                for not more than 1 additional term.
            ``(6) Vacancy.--
                    ``(A) In general.--A vacancy on the Board shall be 
                filled in the same manner as the original Board.
                    ``(B) Reelection.--A member elected to fill a 
                vacancy for an unexpired term may be reelected for 1 
                full term.
            ``(7) Chairperson.--
                    ``(A) In general.--The Board shall select a 
                chairperson from among the voting members of the Board.
                    ``(B) Term.--The term of office of the chairperson 
                shall be 2 years.
            ``(8) Annual meeting.--
                    ``(A) In general.--The Board shall meet not less 
                than once each fiscal year at the call of the 
                chairperson or at the request of the executive director 
                appointed under subsection (g)(1).
                    ``(B) Location.--The location of a meeting of the 
                Board shall be established by the Board.
            ``(9) Voting.--
                    ``(A) Quorum.--A quorum of the Board shall consist 
                of a majority of the voting members.
                    ``(B) Majority vote.--A decision of the Board shall 
                be made by a majority of the voting members of the 
                Board.
            ``(10) Conflicts of interest.--
                    ``(A) In general.--Except as provided in 
                subparagraph (D), a member of the Board shall not vote 
                on any matter respecting any application, contract, 
                claim, or other particular matter pending before the 
                Board in which, to the knowledge of the member, an 
                interest is held by--
                          ``(i) the member;
                          ``(ii) any spouse of the member;
                          ``(iii) any child of the member;
                          ``(iv) any partner of the member;
                          ``(v) any organization in which the member is 
                      serving as an officer, director, trustee, partner, 
                      or employee; or
                          ``(vi) any person with whom the member is 
                      negotiating or has any arrangement concerning 
                      prospective employment or with whom the member has 
                      a financial interest.
                    ``(B) Removal.--Any action by a member of the Board 
                that violates subparagraph (A) shall be cause for 
                removal from the Board.
                    ``(C) Validity of action.--An action by a member of 
                the Board that violates subparagraph (A) shall not 
                impair or otherwise affect the validity of any otherwise 
                lawful action by the Board.
                    ``(D) Disclosure.--
                          ``(i) In general.--If a member of the Board 
                      makes a full disclosure of an interest and, prior 
                      to any participation by the member, the Board 
                      determines, by majority vote, that the interest is 
                      too remote or too inconsequential to affect the 
                      integrity of any participation by the member, the 
                      member may participate in the matter relating to 
                      the interest, except as provided in subparagraph 
                      (E)(iii).

[[Page 110 STAT. 1137]]

                          ``(ii) Vote.--A member that discloses an 
                      interest under clause (i) shall not vote on a 
                      determination of whether the member may 
                      participate in the matter relating to the 
                      interest.
                    ``(E) Remands.--
                          ``(i) In general.--The Secretary may vacate 
                      and remand to the Board for reconsideration any 
                      decision made pursuant to subsection (e)(3)(H) if 
                      the Secretary determines that there has been a 
                      violation of this paragraph or any conflict of 
                      interest provision of the bylaws of the Board with 
                      respect to the decision.
                          ``(ii) Reasons.--In the case of any violation 
                      and remand of a funding decision to the Board 
                      under clause (i), the Secretary shall inform the 
                      Board of the reasons for the remand.
                          ``(iii) Conflicted members not to vote on 
                      remanded decisions.--If a decision with respect to 
                      a matter is remanded to the Board by reason of a 
                      conflict of interest faced by a Board member, the 
                      member may not participate in any subsequent 
                      decision with respect to the matter.
            ``(11) Compensation.--
                    ``(A) In general.--A member of the Board shall not 
                receive any compensation by reason of service on the 
                Board.
                    ``(B) Expenses.--A member of the Board shall be 
                reimbursed for travel, subsistence, and other necessary 
                expenses incurred by the member in the performance of a 
                duty of the member.
            ``(12) Bylaws.--The Board shall adopt, and may from time to 
        time amend, any bylaw that is necessary for the proper 
        management and functioning of the Center.
            ``(13) Public hearings.--Not later than 1 year after the 
        date of enactment of this section, the Board shall hold public 
        hearings on policy objectives of the program established under 
        this section.
            ``(14) Organizational system.--The Board shall provide a 
        system of organization to fix responsibility and promote 
        efficiency in carrying out the functions of the Board.
            ``(15) Use of department of agriculture.--The Board may, 
        with the consent of the Secretary, utilize the facilities of and 
        the services of employees of the Department of Agriculture, 
        without cost to the Center.

    ``(g) Officers and Employees.--
            ``(1) Executive director.--
                    ``(A) In general.--The Board shall appoint an 
                executive director to be the chief executive officer of 
                the Center.
                    ``(B) Tenure.--The executive director shall serve at 
                the pleasure of the Board.
                    ``(C) Compensation.--Compensation for the executive 
                director shall be established by the Board.
            ``(2) Other officers and employees.--The Board may select 
        and appoint officers, attorneys, employees, and agents who shall 
        be vested with such powers and duties as the Board may 
        determine.
            ``(3) Delegation.--The Board may, by resolution, delegate to 
        the chairperson, the executive director, or any other officer or 
        employee any function, power, or duty of the Board other

[[Page 110 STAT. 1138]]

        than voting on a grant, loan, contract, agreement, budget, or 
        annual strategic plan.

    ``(h) Consultation.--To carry out this section, the Board may 
consult with--
            ``(1) State departments of agriculture;
            ``(2) Federal departments and agencies;
            ``(3) nonprofit development corporations;
            ``(4) colleges and universities;
            ``(5) banking and other credit-related agencies;
            ``(6) agriculture and agribusiness organizations; and
            ``(7) regional planning and development organizations.

    ``(i) Oversight.--
            ``(1) In general.--The Secretary shall review and monitor 
        compliance by the Board and the Center with this section.
            ``(2) Sanctions.--If, following notice and opportunity for a 
        hearing, the Secretary finds that the Board or the Center is not 
        in compliance with this section, the Secretary may--
                    ``(A) cease making deposits to the Fund;
                    ``(B) suspend the authority of the Center to 
                withdraw funds from the Fund; or
                    ``(C) impose other appropriate sanctions, including 
                recoupment of money improperly expended for purposes 
                prohibited or not authorized by this Act and 
                disqualification from receipt of financial assistance 
                under this section.
            ``(3) Rescission of sanctions.--The Secretary shall rescind 
        sanctions imposed under paragraph (2) on a finding by the 
        Secretary that there is no longer any failure by the Board or 
        the Center to comply with this section or that the noncompliance 
        will be promptly corrected.''.

SEC. 759A. COOPERATIVE AGREEMENTS.

    Section 607(b) of the Rural Development Act of 1972 (7 U.S.C. 
2204b(b)) is amended by striking paragraph (4) and inserting the 
following:
            ``(4) Cooperative agreements.--
                    ``(A) In general.--Notwithstanding chapter 63 of 
                title 31, United States Code, the Secretary may enter 
                into cooperative agreements with other Federal agencies, 
                State and local governments, and any other organization 
                or individual to improve the coordination and 
                effectiveness of Federal programs, services, and actions 
                affecting rural areas, including the establishment and 
                financing of interagency groups, if the Secretary 
                determines that the objectives of the agreement will 
                serve the mutual interest of the parties in rural 
                development activities.
                    ``(B) Cooperators.--Each cooperator, including each 
                Federal agency, to the extent that funds are otherwise 
                available, may participate in any cooperative agreement 
                or working group established pursuant to this paragraph 
                by contributing funds or other resources to the 
                Secretary to carry out the agreement or functions of the 
                group.''.

SEC. 759B. ELIGIBILITY FOR GRANTS TO BROADCASTING SYSTEMS.

    Section 310B(f) of the Consolidated Farm and Rural Development Act 
(7 U.S.C. 1932(f)) (as redesignated by section 747(a)(6)) is amended by 
striking ``Systems.--The'' and inserting ``Systems.--
            ``(1) Definition of statewide.--In this subsection, the term 
        `statewide' means having a coverage area of not less

[[Page 110 STAT. 1139]]

        than 90 percent of the population of a State and not less than 
        80 percent of the rural land area of the State (as determined by 
        the Secretary).
            ``(2) Grants.--The''.

             CHAPTER 2--RURAL COMMUNITY ADVANCEMENT PROGRAM

SEC. 761. RURAL COMMUNITY ADVANCEMENT PROGRAM.

    The Consolidated Farm and Rural Development Act (7 U.S.C. 1921 et 
seq.) is amended by adding at the end the following:

            ``Subtitle E--Rural Community Advancement Program

``SEC. 381A. <<NOTE: 7 USC 2009.>>  DEFINITIONS.

    ``In this subtitle:
            ``(1) Rural and rural area.--The terms `rural' and `rural 
        area' mean, subject to section 306(a)(7), a city, town, or 
        unincorporated area that has a population of 50,000 inhabitants 
        or less, other than an urbanized area immediately adjacent to a 
        city, town, or unincorporated area that has a population in 
        excess of 50,000 inhabitants.
            ``(2) State.--The term `State' means each of the 50 States, 
        the District of Columbia, the Commonwealth of Puerto Rico, Guam, 
        the Virgin Islands of the United States, American Samoa, the 
        Commonwealth of the Northern Mariana Islands, the Trust 
        Territory of the Pacific Islands, and the Federated States of 
        Micronesia.
            ``(3) State director.--The term `State director' means, with 
        respect to a State, the Director of the Rural Economic and 
        Community Development State Office.

``SEC. 381B. <<NOTE: 7 USC 2009a.>>  ESTABLISHMENT.

    ``The Secretary shall establish a rural community advancement 
program to provide grants, loans, loan guarantees, and other assistance 
to meet the rural development needs of local communities in States and 
federally recognized Indian tribes.

``SEC. 381C. <<NOTE: 7 USC 2009b.>>  NATIONAL OBJECTIVES.

    ``The national objectives of the program established under this 
subtitle shall be to--
            ``(1) promote strategic development activities and 
        collaborative efforts by State and local communities, and 
        federally recognized Indian tribes, to maximize the impact of 
        Federal assistance;
            ``(2) optimize the use of resources;
            ``(3) provide assistance in a manner that reflects the 
        complexity of rural needs, including the needs for business 
        development, health care, education, infrastructure, cultural 
        resources, the environment, and housing;
            ``(4) advance activities that empower, and build the 
        capacity of, State and local communities to design unique 
        responses to the special needs of the State and local 
        communities, and federally recognized Indian tribes, for rural 
        development assistance; and

[[Page 110 STAT. 1140]]

            ``(5) adopt flexible and innovative approaches to solving 
        rural development problems.

``SEC. 381D. <<NOTE: 7 USC 2009c.>>  STRATEGIC PLANS.

    ``(a) In General.--The Secretary shall direct each of the Directors 
of Rural Economic and Community Development State Offices to prepare a 
strategic plan--
            ``(1) for each State for the delivery of assistance under 
        this subtitle in the State; and
            ``(2) for each federally recognized Indian tribe for the 
        delivery of assistance under this subtitle to the Indian tribe.

    ``(b) Assistance.--
            ``(1) In general.--Financial assistance for rural 
        development provided under this subtitle for a State or a 
        federally recognized Indian tribe shall be used only for orderly 
        community development that is consistent with the strategic plan 
        of the State or Indian tribe.
            ``(2) Rural area.--Assistance under this subtitle may only 
        be provided in a rural area.
            ``(3) Small communities.--In carrying out this subtitle in a 
        State, the Secretary shall give priority to communities with the 
        smallest populations and lowest per capita income.

    ``(c) Review.--The Secretary shall review the strategic plan of each 
State and federally recognized Indian tribe not later than 60 days after 
receiving the plan, and at least once every 5 years thereafter.
    ``(d) Contents.--A strategic plan of a State or federally recognized 
Indian tribe under this section shall be a plan that--
            ``(1) coordinates economic, human, and community development 
        plans and related activities proposed for an affected area;
            ``(2) provides that the State or federally recognized Indian 
        tribe, as appropriate, and an affected community (including 
        local institutions and organizations that have contributed to 
        the planning process) shall act as full partners in the process 
        of developing and implementing the plan;
            ``(3) identifies goals, methods, and benchmarks for 
        measuring the success of carrying out the plan and how the plan 
        relates to local or regional ecosystems;
            ``(4) in the case of a State, provides for the involvement, 
        in the preparation of the plan, of State, local, private, and 
        public persons, State rural development councils, federally 
        recognized Indian tribes in the State, and community-based 
        organizations;
            ``(5) identifies the amount and source of Federal and non-
        Federal resources that are available for carrying out the plan; 
        and
            ``(6) includes such other information as may be required by 
        the Secretary.

``SEC. 381E. <<NOTE: 7 USC 2009d.>>  RURAL DEVELOPMENT TRUST FUND.

    ``(a) Establishment.--There is established in the Treasury of the 
United States a trust fund which shall be known as the Rural Development 
Trust Fund (in this subtitle referred to as the `Trust Fund').
    ``(b) Accounts.--There are established in the Trust Fund the 
following accounts:
            ``(1) The rural community facilities account.
            ``(2) The rural utilities account.

[[Page 110 STAT. 1141]]

            ``(3) The rural business and cooperative development 
        account.
            ``(4) The national reserve account.
            ``(5) The federally recognized Indian tribe account.

    ``(c) Deposits Into Accounts.--Notwithstanding any other provision 
of law, each fiscal year--
            ``(1) all amounts made available to carry out the 
        authorities described in subsection (d)(1) for the fiscal year 
        shall be deposited into the rural community facilities account 
        of the Trust Fund;
            ``(2) all amounts made available to carry out the 
        authorities described in subsection (d)(2) for the fiscal year 
        shall be deposited into the rural utilities account of the Trust 
        Fund; and
            ``(3) all amounts made available to carry out the 
        authorities described in subsection (d)(3) for the fiscal year 
        shall be deposited into the rural business and cooperative 
        development account of the Trust Fund.

    ``(d) Function Categories.--The function categories described in 
this subsection are the following:
            ``(1) Rural community facilities.--The rural community 
        development category consists of all amounts made available 
        for--
                    ``(A) community facility direct and guaranteed loans 
                under section 306(a)(1); or
                    ``(B) community facility grants under section 
                306(a)(19).
            ``(2) Rural utilities.--The rural utilities category 
        consists of all amounts made available for--
                    ``(A) water or waste disposal grants or direct or 
                guaranteed loans under paragraph (1) or (2) of section 
                306(a);
                    ``(B) rural water or wastewater technical assistance 
                and training grants under section 306(a)(14);
                    ``(C) emergency community water assistance grants 
                under section 306A; or
                    ``(D) solid waste management grants under section 
                310B(b).
            ``(3) Rural business and cooperative development.--The rural 
        business and cooperative development category consists of all 
        amounts made available for--
                    ``(A) rural business opportunity grants under 
                section 306(a)(11)(A);
                    ``(B) business and industry guaranteed loans under 
                section 310B(a)(1); or
                    ``(C) rural business enterprise grants or rural 
                educational network grants under section 310B(c).

    ``(e) National Reserve Account.--
            ``(1) Transfers into account.--
                    ``(A) Initial transfer.--Each fiscal year, the 
                Secretary shall transfer to the national reserve account 
                of the Trust Fund from each account specified in 
                subsection (c) not more than the applicable percentage 
                of the amount deposited in each such account for the 
                fiscal year under subsection (c).
                    ``(B) Repooling of unobligated funds allocated among 
                the states.--Not earlier than July 15 of each fiscal 
                year, the Secretary shall transfer to the national 
                reserve account from each account specified in 
                subsection (c) any amount in the account that is 
                allocated for any

[[Page 110 STAT. 1142]]

                State, and has not been obligated by the State director 
                or obligated for specific approved projects in the 
                State.
            ``(2) Use.--The Secretary may use amounts in the national 
        reserve account of the Trust Fund, pursuant to any authority 
        described in subsection (d)--
                    ``(A) in the case of a fiscal year other than fiscal 
                year 2001 or 2002--
                          ``(i) to meet situations of exceptional need;
                          ``(ii) to meet emergency situations; or
                          ``(iii) to provide funds to entities whose 
                      applications for funds provided under this 
                      subtitle have been approved and who have not 
                      received funds sufficient to meet the needs of the 
                      projects described in the applications; or
                    ``(B) in the case of fiscal years 2001 and 2002--
                          ``(i) to meet situations of exceptional need; 
                      or
                          ``(ii) to meet emergency situations.
            ``(3) Applicable percentage defined.--In paragraph (1), the 
        term `applicable percentage' means, with respect to a fiscal 
        year--
                    ``(A) 15 percent for fiscal year 1997;
                    ``(B) 12.5 percent for fiscal year 1998;
                    ``(C) 10 percent for fiscal year 1999;
                    ``(D) 7.5 percent for fiscal year 2000;
                    ``(E) 5 percent for fiscal year 2001; and
                    ``(F) 5 percent for fiscal year 2002.

    ``(f) Federally Recognized Indian Tribe Account.--
            ``(1) Transfers into account.--Each fiscal year, the 
        Secretary shall transfer to the federally recognized Indian 
        tribe account of the Trust Fund 3 percent of the amount 
        deposited into the Trust Fund for the fiscal year under 
        subsection (d).
            ``(2) Use of funds.--The Secretary shall make available to 
        federally recognized Indian tribes the amounts in the federally 
        recognized Indian tribe account for use pursuant to any 
        authority described in subsection (d).

    ``(g) Allocation Among States.--The Secretary shall allocate the 
amounts in each account specified in subsection (c) among the States in 
a fair, reasonable, and appropriate manner that takes into consideration 
rural population, levels of income, unemployment, and other relevant 
factors, as determined by the Secretary.
    ``(h) Availability of Funds Allocated for States.--The Secretary 
shall make available to each State the total amount allocated for the 
State under subsection (g) of this section that remains after applying 
section 381G.

``SEC. 381F. <<NOTE: 7 USC 2009e.>>  TRANSFERS OF FUNDS.

    ``(a) General Authority.--Subject to subsection (b) of this section, 
the State Director of any State may, during any fiscal year, transfer 
from each account specified in section 381E(c) a total of not more than 
25 percent of the amount in the account that is allocated for the State 
for the fiscal year to any other account in which amounts are allocated 
for the State for the fiscal year.
    ``(b) Limitation.--Except as provided in subsection (c) of this 
section, a transfer otherwise authorized by subsection (a) of this 
section to be made during a fiscal year may not be made to the extent 
that the sum of the amount to be transferred and all amounts

[[Page 110 STAT. 1143]]

so transferred by State directors under subsection (a) of this section 
during the fiscal year exceeds 10 percent of the total amount made 
available to carry out the authorities described in section 381E(d) for 
the fiscal year.
    ``(c) Exceptions.--Subsections (a) and (b) shall not apply to a 
transfer of funds by a State director if the State director certifies to 
the Secretary that--
            ``(1) there is an approved application for a project in the 
        function category to which the funds are to be transferred but 
        funds are not available for the project in the function 
        category; and
            ``(2)(A) there is no such approved application in the 
        function category from which the funds are to be transferred; or
            ``(B) the community that would benefit from the project has 
        a smaller population and a lesser per capita income than any 
        community that would benefit from a project in the function 
        category from which the funds are to be transferred.

``SEC. 381G. <<NOTE: 7 USC 2009f.>>  GRANTS TO STATES.

    ``(a) Simple Grants.--
            ``(1) Mandatory grant.--The Secretary shall make a grant to 
        any eligible State for any fiscal year for which the State 
        requests a grant under this section in an amount equal to 5 
        percent of the total amount allocated for the State under 
        section 381E(g).
            ``(2) Permissive grant.--Before July 15 of each fiscal year, 
        the Secretary may make a grant to any State to defray the cost 
        of any subsidy associated with a guarantee provided by an 
        eligible public entity of the State under section 381H in an 
        amount that does not exceed 5 percent of the total amount 
        allocated for the State under section 381E(g).
            ``(3) Source of funds.--The Secretary shall make grants to a 
        State under paragraphs (1) and (2) from amounts allocated for 
        the State in the accounts specified in section 381E(c), by 
        reducing each such allocated amount by the same percentage.

    ``(b) Matching Grants.--
            ``(1) In general.--Subject to paragraph (2), the Secretary 
        shall make a grant to any eligible State for any fiscal year for 
        which the State requests a grant under this section in an amount 
        equal to 5 percent of the amount allocated for the State for the 
        fiscal year under section 381E(h).
            ``(2) Eligibility.--A State shall be eligible for a grant 
        under paragraph (1) if the State makes commitments to the 
        Secretary to--
                    ``(A) expend from non-Federal sources in accordance 
                with subsection (c) an amount that is not less than 200 
                percent of the amount of the grant; and
                    ``(B) maintain the amounts paid to the State under 
                this subsection and the amount referred to in 
                subparagraph (A) in an account separate from all other 
                State funds until expended in accordance with subsection 
                (c).
            ``(3) Source of funds.--If the Secretary makes a grant under 
        paragraph (1) before July 15 of the fiscal year, the grant shall 
        be made from amounts allocated for the State in the accounts 
        specified in section 381E(c) for the fiscal year, by reducing 
        each allocated amount by the same percentage.

[[Page 110 STAT. 1144]]

    ``(c) Use of Funds.--A State to which funds are provided under this 
section shall use the funds in rural areas for any activity authorized 
under the authorities described in section 381E(d) in accordance with 
the State strategic plan referred to in section 381D.
    ``(d) Maintenance of Effort.--The State shall provide assurances to 
the Secretary that funds provided to the State under this section will 
be used only to supplement, not to supplant, the amount of Federal, 
State, and local funds otherwise expended for rural development 
assistance in the State.
    ``(e) Appeals.--The Secretary shall provide to a State an 
opportunity to appeal any action taken with respect to the State under 
this section.
    ``(f) Administrative Costs.--Federal funds shall not be used for any 
administrative costs incurred by a State in carrying out this subtitle.
    ``(g) Expenditure of Funds by State.--
            ``(1) In general.--Payments to a State from a grant under 
        this section for a fiscal year shall be obligated by the State 
        in the fiscal year or in the succeeding fiscal year. A State 
        shall obligate funds under this section to provide assistance to 
        rural areas.
            ``(2) Failure to obligate.--If a State fails to obligate 
        payments in accordance with paragraph (1), the Secretary shall 
        make an equal reduction in the amount of payments provided to 
        the State under this section for the immediately succeeding 
        fiscal year.
            ``(3) Noncompliance.--
                    ``(A) Review.--The Secretary shall review and 
                monitor State compliance with this section.
                    ``(B) Penalty.--If the Secretary finds that there 
                has been misuse of grant funds provided under this 
                section, or noncompliance with any of the terms and 
                conditions of a grant, after reasonable notice and 
                opportunity for a hearing--
                          ``(i) the Secretary shall notify the State of 
                      the finding; and
                          ``(ii) no further payments to the State shall 
                      be made with respect to the programs funded under 
                      this section until the Secretary is satisfied that 
                      there is no longer any failure to comply or that 
                      the noncompliance will be promptly corrected.
                    ``(C) Other sanctions.--In the case of a finding of 
                noncompliance made pursuant to subparagraph (B), the 
                Secretary may, in addition to, or in lieu of, imposing 
                the sanctions described in subparagraph (B), impose 
                other appropriate sanctions, including recoupment of 
                money improperly expended for purposes prohibited or not 
                authorized by this section and disqualification from the 
                receipt of financial assistance under this section.

    ``(h) No Entitlement to Contract, Grant, or Assistance.--Nothing in 
this subtitle--
            ``(1) entitles any person to assistance or a contract or 
        grant; or
            ``(2) limits the right of a State to impose additional 
        limitations or conditions on assistance or a contract or grant 
        under this section.

[[Page 110 STAT. 1145]]

``SEC. 381H. <<NOTE: 7 USC 2009g.>>  GUARANTEE AND COMMITMENT TO 
            GUARANTEE LOANS.

    ``(a) Definition of Eligible Public Entity.--In this section, the 
term `eligible public entity' means any unit of general local 
government.
    ``(b) Guarantee and Commitment.--The Secretary, on such terms and 
conditions as the Secretary may prescribe, may guarantee and make 
commitments to guarantee notes or other obligations issued by eligible 
public entities, or by public agencies designated by the eligible public 
entities, for the purposes of financing rural development activities 
authorized and funded under section 381G.
    ``(c) Limitation.--The Secretary may not make a guarantee or 
commitment to guarantee with respect to a note or other obligation if 
the total amount of outstanding notes or obligations guaranteed under 
this section (excluding any amount repaid under the contract entered 
into under subsection (e)(1)(A)) for issuers in the State would exceed 
an amount equal to 5 times the sum of the total amount of grants made to 
the State under section 381G.
    ``(d) Payment of Principal, Interest, and Costs.--Notwithstanding 
any other provision of this subtitle, a State to which a grant is made 
under section 381G may use the grant (including program income derived 
from the grant) to pay principal and interest due (including such 
servicing, underwriting, or other costs as may be specified in 
regulations of the Secretary) on any note or other obligation guaranteed 
under this section.
    ``(e) Repayment Contract; Security.--
            ``(1) In general.--To ensure the repayment of notes or other 
        obligations and charges incurred under this section and as a 
        condition for receiving the guarantees, the Secretary shall 
        require the issuer to--
                    ``(A) enter into a contract, in a form acceptable to 
                the Secretary, for repayment of notes or other 
                obligations guaranteed under this section;
                    ``(B) pledge any grant for which the issuer may 
                become eligible under this subtitle; and
                    ``(C) furnish, at the discretion of the Secretary, 
                such other security as may be considered appropriate by 
                the Secretary in making the guarantees.
            ``(2) Security.--To assist in ensuring the repayment of 
        notes or other obligations and charges incurred under this 
        section, a State shall pledge any grant for which the State may 
        become eligible under this subtitle as security for notes or 
        other obligations and charges issued under this section by any 
        eligible public entity in the State.

    ``(f) Pledged Grants for Repayments.--Notwithstanding any other 
provision of this subtitle, the Secretary may apply grants pledged 
pursuant to paragraphs (1)(B) and (2) of subsection (e) to any 
repayments due the United States as a result of the guarantees.
    ``(g) Outstanding Obligations.--The total amount of outstanding 
obligations guaranteed on a cumulative basis by the Secretary pursuant 
to subsection (b) shall not at any time exceed such amount as may be 
authorized to be appropriated for such purpose for any fiscal year.
    ``(h) Purchase of Guaranteed Obligations by Federal Financing 
Bank.--Notes or other obligations guaranteed under this section may not 
be purchased by the Federal Financing Bank.

[[Page 110 STAT. 1146]]

    ``(i) Full Faith and Credit.--The full faith and credit of the 
United States is pledged to the payment of all guarantees made under 
this section. Any such guarantee made by the Secretary shall be 
conclusive evidence of the eligibility of the obligations for the 
guarantee with respect to principal and interest. The validity of the 
guarantee shall be incontestable in the hands of a holder of the 
guaranteed obligations.

``SEC. 381I. <<NOTE: 7 USC 2009h.>>  LOCAL INVOLVEMENT.

    ``An application for assistance under this subtitle shall include 
evidence of significant community support for the project for which the 
assistance is requested. In the case of assistance for a community 
facilities or infrastructure project, the evidence shall be in the form 
of a certification of support for the project from each affected general 
purpose local government.

``SEC. 381J. <<NOTE: 7 USC 2009i.>>  INTERSTATE COLLABORATION.

    ``The Secretary shall permit the establishment of voluntary pooling 
arrangements among States, and regional fund-sharing agreements, to 
carry out projects receiving assistance under this subtitle.

``SEC. 381K. <<NOTE: 7 USC 2009j.>>  ANNUAL REPORT.

    ``(a) In General.--The Secretary, in collaboration with State, 
local, public, and private entities, State rural development councils, 
and community-based organizations, shall prepare an annual report that 
contains evaluations, assessments, and performance outcomes concerning 
the rural community advancement programs carried out under this 
subtitle.
    ``(b) Submission.--Not later than March 1 of each year, the 
Secretary shall--
            ``(1) submit the report required by subsection (a) to 
        Congress and the chief executives of the States participating in 
        the program established under this subtitle; and
            ``(2) make the report available to State and local 
        participants.

``SEC. 381L. <<NOTE: 7 USC 2009k.>>  RURAL DEVELOPMENT INTERAGENCY 
            WORKING GROUP.

    ``(a) In General.--The Secretary shall provide leadership within the 
Executive branch for, and assume responsibility for, establishing an 
interagency working group chaired by the Secretary.
    ``(b) Duties.--The working group shall establish policy for, 
coordinate, make recommendations with respect to, and evaluate the 
performance of, all Federal rural development efforts.

``SEC. 381M. <<NOTE: 7 USC 2009l.>>  DUTIES OF RURAL ECONOMIC AND 
            COMMUNITY DEVELOPMENT STATE OFFICES.

    ``In carrying out this subtitle, the Director of a Rural Economic 
and Community Development State Office shall--
            ``(1) to the maximum extent practicable, ensure that the 
        State strategic plan referred to in section 381D is implemented;
            ``(2) coordinate community development objectives within the 
        State;
            ``(3) establish links between local, State, and field office 
        program administrators of the Department of Agriculture;
            ``(4) ensure that recipient communities comply with 
        applicable Federal and State laws and requirements; and

[[Page 110 STAT. 1147]]

            ``(5) integrate State development programs with assistance 
        under this subtitle.

``SEC. 381N. <<NOTE: 7 USC 2009m.>>  ELECTRONIC TRANSFER.

    ``The Secretary shall transfer funds in accordance with this 
subtitle through electronic transfer as soon as practicable after the 
date of enactment of this subtitle.

``SEC. 381O. <<NOTE: 7 USC 2009n.>>  RURAL VENTURE CAPITAL DEMONSTRATION 
            PROGRAM.

    ``(a) In General.--The Secretary may designate for each fiscal year 
up to 10 community development venture capital organizations to 
demonstrate the utility of guarantees to attract increased private 
investment in rural private business enterprises.
    ``(b) Rural Business Investment Pool.--
            ``(1) Establishment.--To be eligible to participate in the 
        demonstration program, an organization referred to in subsection 
        (a) shall establish a rural business private investment pool 
        (referred to in this subsection as a `pool') for the purpose of 
        making equity investments in rural private business enterprises.
            ``(2) Guarantee.--From amounts in the national reserve 
        account of the Trust Fund, the Secretary shall guarantee the 
        funds in a pool against loss, except that the guarantee shall 
        not exceed an amount equal to 30 percent of the total funds in 
        the pool.
            ``(3) Amount.--The Secretary shall issue guarantees covering 
        not more than $15,000,000 of contingent liabilities for each of 
        fiscal years 1996 through 2002.
            ``(4) Term.--The term of a guarantee provided under this 
        subsection shall not exceed 10 years.
            ``(5) Submission of plan.--To be eligible to participate in 
        the demonstration program, an organization referred to in 
        subsection (a) shall submit a plan that describes--
                    ``(A) potential sources and uses of the pool to be 
                established by the organization;
                    ``(B) the utility of the guarantee authority in 
                attracting capital for the pool; and
                    ``(C) on selection, mechanisms for notifying State, 
                local, and private nonprofit business development 
                organizations and businesses of the existence of the 
                pool.
            ``(6) Competition.--
                    ``(A) In general.--The Secretary shall conduct a 
                competition for the designation and establishment of 
                pools.
                    ``(B) Priority.--In conducting the competition, the 
                Secretary shall give priority to organizations that--
                          ``(i) have a demonstrated record of 
                      performance, or have a board and executive 
                      director with experience, in venture capital, 
                      small business equity investment, or community 
                      development finance;
                          ``(ii) propose to serve low-income 
                      communities;
                          ``(iii) propose to maintain an average 
                      investment of not more than $500,000 from the pool 
                      of the organization;
                          ``(iv) invest funds statewide or in a 
                      multicounty region; and
                          ``(v) propose to target job opportunities 
                      resulting from the investments primarily to 
                      economically dis

[[Page 110 STAT. 1148]]

                      advantaged individuals, as determined by the 
                      Secretary.
                    ``(C) Geographic diversity.--To the extent 
                practicable, the Secretary shall designate organizations 
                in diverse geographic areas.''.

SEC. 762. <<NOTE: 7 USC 2204b note.>>  SIMPLIFIED, UNIFORM APPLICATION 
            FOR ASSISTANCE FROM ALL FEDERAL RURAL DEVELOPMENT PROGRAMS.

    Not later than 1 year after the date of enactment of this Act, the 
Secretary of Agriculture shall develop a streamlined, simplified, and 
uniform application which shall be used in applying for assistance under 
all of the following:
            (1) Sections 304(b), 306, 306A, 306C, 306D, 310B, and 375 
        and subtitle E of the Consolidated Farm and Rural Development 
        Act (7 U.S.C. 1924(b), 1926, 1926a, 1926c, 1926d, and 1932).
            (2) Subtitle G of title XVI and sections 2281, 2333, and 
        2381 of the Food, Agriculture, Conservation, and Trade Act of 
        1990 (7 U.S.C. 5901-5908, 5177a, 950aaa-2, and 3125b).
            (3) Subtitle C of title IX of the Food, Agriculture, 
        Conservation, and Trade Act Amendments of 1991 (Public Law 102-
        237: 7 U.S.C. 5930 note).
            (4) Section 1323(b) of the Food Security Act of 1985 (Public 
        Law 99-198; 7 U.S.C. 1932 note).
            (5) Title V and section 603(c) of the Rural Development Act 
        of 1972 (7 U.S.C. 2661-2669 and 2204a(c)).
            (6) Sections 5 and 311 and title IV of the Rural 
        Electrification Act of 1936 (7 U.S.C. 905, 940a, and 941-950b).

SEC. 763. COMMUNITY FACILITIES GRANT PROGRAM.

    Section 306(a) of the Consolidated Farm and Rural Development Act (7 
U.S.C. 1926(a)) (as amended by section 741(a)(5)) is amended by adding 
at the end the following:
            ``(19) Community facilities grant program.--
                    ``(A) In general.--The Secretary may make grants, in 
                a total amount not to exceed $10,000,000 for any fiscal 
                year, to associations, units of general local 
                government, nonprofit corporations, and federally 
                recognized Indian tribes to provide the Federal share of 
                the cost of developing specific essential community 
                facilities in rural areas.
                    ``(B) Federal share.--
                          ``(i) In general.--Except as provided in 
                      clauses (ii) and (iii), the Secretary shall, by 
                      regulation, establish the amount of the Federal 
                      share of the cost of the facility under this 
                      paragraph.
                          ``(ii) Maximum amount.--The amount of a grant 
                      provided under this paragraph for a facility shall 
                      not exceed 75 percent of the cost of developing 
                      the facility.
                          ``(iii) Graduated scale.--The Secretary shall 
                      provide for a graduated scale for the amount of 
                      the Federal share provided under this paragraph, 
                      with higher Federal shares for facilities in 
                      communities that have lower community population 
                      and income levels, as determined by the 
                      Secretary.''.

[[Page 110 STAT. 1149]]

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

SEC. 771. PURPOSES; INVESTIGATIONS AND REPORTS.

    Section 2 of the Rural Electrification Act of 1936 (7 U.S.C. 902) is 
amended--
            (1) by striking ``Sec. 2. (a) The Secretary of Agriculture 
        is'' and inserting the following:

``SEC. 2. GENERAL AUTHORITY OF THE SECRETARY OF AGRICULTURE.

    ``(a) Loans.--The Secretary of Agriculture (referred to in this Act 
as the `Secretary') is'';
            (2) in subsection (a)--
                    (A) by striking ``and the furnishing'' the first 
                place it appears and all that follows through ``central 
                station service''; and
                    (B) by striking ``systems; to make'' and all that 
                follows and inserting ``systems.''; and
            (3) by striking subsection (b) and inserting the following:

    ``(b) Investigations and Reports.--The Secretary may make, or cause 
to be made, studies, investigations, and reports regarding matters, 
including financial, technological, and regulatory matters, affecting 
the condition and progress of electric, telecommunications, and economic 
development in rural areas, and publish and disseminate information with 
respect to the matters.''.

SEC. 772. AUTHORIZATION OF APPROPRIATIONS.

    (a) In General.--Section 3 of the Rural Electrification Act of 1936 
(7 U.S.C. 903) is amended to read as follows:

``SEC. 3. AUTHORIZATION OF APPROPRIATIONS.

    ``There are authorized to be appropriated such sums as are necessary 
to carry out this Act.''.
    (b) Conforming Amendments.--
            (1) Section 301(a) of the Rural Electrification Act of 1936 
        (7 U.S.C. 931(a)) is amended--
                    (A) by striking ``(a)'' the first place the term 
                appears; and
                    (B) in paragraph (3), by striking ``notwithstanding 
                section 3(a) of title I,''.
            (2) Section 302(b)(2) of the Rural Electrification Act of 
        1936 (7 U.S.C. 932(b)(2)) is amended by striking ``pursuant to 
        section 3(a) of this Act''.
            (3) The last sentence of section 406(a) of the Rural 
        Electrification Act of 1936 (7 U.S.C. 946(a)) is amended by 
        striking ``pursuant to section 3(a) of this Act''.

SEC. 773. LOANS FOR ELECTRICAL PLANTS AND TRANSMISSION LINES.

    Section 4 of the Rural Electrification Act of 1936 (7 U.S.C. 904) is 
amended--
            (1) in the first sentence--
                    (A) by striking ``for the furnishing of'' and all 
                that follows through ``central station service and''; 
                and
                    (B) by striking ``the provisions of sections 3(d) 
                and 3(e) but without regard to the 25 per centum 
                limitation therein contained,'' and inserting ``section 
                3,'';

[[Page 110 STAT. 1150]]

            (2) in the second sentence, by striking ``: Provided 
        further, That all'' and all that follows through ``loan: And 
        provided further, That'' and inserting ``, except that''; and
            (3) in the third sentence, by striking ``and section 5''.

SEC. 774. LOANS FOR ELECTRICAL AND PLUMBING EQUIPMENT.

    (a) In General.--Section 5 of the Rural Electrification Act of 1936 
(7 U.S.C. 905) is repealed.
    (b) Conforming Amendments.--Section 12(a) of the Rural 
Electrification Act of 1936 (7 U.S.C. 912(a)) is amended--
            (1) by striking ``: Provided, however, That'' and inserting 
        ``, except that,''; and
            (2) by striking ``, and with respect to any loan made under 
        section 5,'' and all that follows through ``section 3''.

SEC. 775. TESTIMONY ON BUDGET REQUESTS.

    Section 6 of the Rural Electrification Act of 1936 (7 U.S.C. 906) is 
amended by striking the second sentence.

SEC. 776. TRANSFER OF FUNCTIONS OF ADMINISTRATION CREATED BY EXECUTIVE 
            ORDER.

    Section 8 of the Rural Electrification Act of 1936 (7 U.S.C. 908) is 
repealed.

SEC. 777. ANNUAL REPORT.

    Section 10 of the Rural Electrification Act of 1936 (7 U.S.C. 910) 
is repealed.

SEC. 778. PROHIBITION ON RESTRICTING WATER AND WASTE FACILITY SERVICES 
            TO ELECTRIC CUSTOMERS.

    The Rural Electrification Act of 1936 is amended by inserting after 
section 16 (7 U.S.C. 916) the following:

``SEC. 17. <<NOTE: 7 USC 917.>>  PROHIBITION ON RESTRICTING WATER AND 
            WASTE FACILITY SERVICES TO ELECTRIC CUSTOMERS.

    ``(a) Prohibition.--Assistance under any rural development program 
administered by the Secretary or any agency of the Department of 
Agriculture shall not be conditioned on any requirement that the 
recipient of the assistance accept or receive electric service from any 
particular utility, supplier, or cooperative.
    ``(b) <<NOTE: Regulations.>>  Ensuring Compliance.--The Secretary 
shall establish, by regulation, adequate safeguards to ensure that 
assistance under any rural development program is not subject to such a 
condition. The safeguards shall include periodic certifications and 
audits, and appropriate measures and sanctions against any person 
violating, or attempting to violate subsection (a).

    ``(c) Definition of Rural Development Programs.--In this section, 
the term `rural development program' means the following:
            ``(1) Sections 304(b), 306, 306A, 306C, 306D, 310B, and 375 
        and subtitle E of the Consolidated Farm and Rural Development 
        Act (7 U.S.C. 1924(b), 1926, 1926a, 1926c, 1926d, and 1932).
            ``(2) Subtitle G of title XVI and sections 2281, 2333, and 
        2381 of the Food, Agriculture, Conservation, and Trade Act of 
        1990 (7 U.S.C. 5901-5908, 5177a, 950aaa-2, and 3125b).
            ``(3) Subtitle C of title IX of the Food, Agriculture, 
        Conservation, and Trade Act Amendments of 1991 (Public Law 102-
        237; 7 U.S.C. 5930 note).

[[Page 110 STAT. 1151]]

            ``(4) Section 1323(b) of the Food Security Act of 1985 
        (Public Law 99-198; 7 U.S.C. 1932 note).
            ``(5) Title V and section 603(c) of the Rural Development 
        Act of 1972 (7 U.S.C. 2661-2669 and 2204a(c)).
            ``(6) Sections 5 and 311 and title IV of this Act (7 U.S.C. 
        905, 940a, and 941-950b).

    ``(d) Regulations.--Not later than 60 days after the date of 
enactment of the Federal Agriculture Improvement and Reform Act of 1996, 
the Secretary shall issue final regulations to ensure compliance with 
subsection (a).''.

SEC. 779. TELEPHONE LOAN TERMS AND CONDITIONS.

    Section 309 of the Rural Electrification Act of 1936 (7 U.S.C. 939) 
is amended--
            (1) in subsection (a), by striking ``(a) In General.--''; 
        and
            (2) by striking subsection (b).

SEC. 780. PRIVATIZATION PROGRAM.

    Section 311 of the Rural Electrification Act of 1936 (7 U.S.C. 940a) 
is repealed.

SEC. 781. RURAL BUSINESS INCUBATOR FUND.

    (a) In General.--Section 502 of the Rural Electrification Act of 
1936 (7 U.S.C. 950aa-1) is repealed.
    (b) Conforming Amendments.--Section 501 of the Rural Electrification 
Act of 1936 (7 U.S.C. 950aa) is amended--
            (1) in paragraph (5), by inserting ``and'' at the end;
            (2) in paragraph (6), by striking ``; and'' at the end and 
        inserting a period; and
            (3) by striking paragraph (7).

         Subtitle D--Miscellaneous Rural Development Provisions

SEC. 791. INTEREST RATE FORMULA.

    (a) Bankhead-Jones Farm Tenant Act.--Section 32(e) of the Bankhead-
Jones Farm Tenant Act (7 U.S.C. 1011) is amended by striking the fifth 
sentence and inserting the following: ``A loan under this subsection 
shall be made under a contract that provides, under such terms and 
conditions as the Secretary considers appropriate, for the repayment of 
the loan in not more than 30 years, with interest at a rate not to 
exceed the current market yield for outstanding municipal obligations 
with remaining periods to maturity comparable to the average maturity 
for the loan, adjusted to the nearest \1/8\ of 1 percent.''.
    (b) Watershed Protection and Flood Prevention Act.--Section 8 of the 
Watershed Protection and Flood Prevention Act (16 U.S.C. 1006a) is 
amended by striking the second sentence and inserting the following: ``A 
loan or advance under this section shall be made under a contract or 
agreement that provides, under such terms and conditions as the 
Secretary considers appropriate, for the repayment of the loan or 
advance in not more than 50 years from the date when the principal 
benefits of the works of improvement first become available, with 
interest at a rate not to exceed the current market yield for 
outstanding municipal obliga

[[Page 110 STAT. 1152]]

tions with remaining periods to maturity comparable to the average 
maturity for the loan, adjusted to the nearest \1/8\ of 1 percent.''.

SEC. 792. GRANTS FOR FINANCIALLY STRESSED FARMERS, DISLOCATED FARMERS, 
            AND RURAL FAMILIES.

    (a) In General.--Section 502 of the Rural Development Act of 1972 (7 
U.S.C. 2662) is amended by striking subsection (f).
    (b) Conforming Amendments.--
            (1) Section 2389 of the Food, Agriculture, Conservation, and 
        Trade Act of 1990 (Public Law 101-624; 7 U.S.C. 2662 note) is 
        amended by striking subsection (d).
            (2) Section 503(c) of the Rural Development Act of 1972 (7 
        U.S.C. 2663(c)) is amended--
                    (A) in paragraph (1)--
                          (i) by striking ``(1)'';
                          (ii) by striking ``section 502(e)'' and all 
                      that follows through ``shall be distributed'' and 
                      inserting ``subsections (e), (h), and (i) of 
                      section 502 shall be distributed''; and
                          (iii) by striking ``objectives of'' and all 
                      that follows through ``title'' and inserting 
                      ``objectives of subsections (e), (h), and (i) of 
                      section 502''; and
                    (B) by striking paragraph (2).

SEC. 793. <<NOTE: 7 USC 2204f.>>  FUND FOR RURAL AMERICA.

    (a) In General.--There is established in the Treasury of the United 
States an account to be known as the Fund for Rural America (referred to 
in this section as the ``Account'') to provide funds for activities 
described in subsection (c).
    (b) Funding.--
            (1) In general.--On January 1, 1997, October 1, 1998, and 
        October 1, 1999, out of any funds in the Treasury not otherwise 
        appropriated, the Secretary of the Treasury shall transfer 
        $100,000,000 to the Account.
            (2) Entitlement.-- The Secretary of Agriculture (referred to 
        in this section as the ``Secretary'')--
                    (A) shall be entitled to receive the funds 
                transferred to the Account under paragraph (1);
                    (B) shall accept the funds; and
                    (C) shall use the funds to carry out this section.
            (3) Purposes.--Subject to subsection (d), of the amounts 
        transferred to the Account for a fiscal year, the Secretary 
        shall make available--
                    (A) for activities described in subsection (c)(1), 
                not less than \1/3\ and not more than \2/3\ of the funds 
                in the Account; and
                    (B) for activities described in subsection (c)(2), 
                all funds in the Account not made available by the 
                Secretary for activities described in subsection (c)(1).

    (c) Activities.--
            (1) Rural development.--
                    (A) In general.--The Secretary may use the funds in 
                the Account for a rural development activity--
                          (i) authorized under the Housing Act of 1949 
                      for--
                                    (I) direct loans to low-income 
                                borrowers under section 502 (42 U.S.C. 
                                1472);

[[Page 110 STAT. 1153]]

                                    (II) loans for financial assistance 
                                for housing for domestic farm laborers 
                                under section 514 (42 U.S.C. 1484);
                                    (III) financial assistance for 
                                housing for domestic farm laborers under 
                                section 516 (42 U.S.C. 1486);
                                    (IV) payments for elderly who are 
                                not now receiving rental assistance 
                                under section 521 (42 U.S.C. 1490a);
                                    (V) grants and contracts for mutual 
                                and self-help housing under section 
                                523(b)(1)(A) (42 U.S.C. 1490c(b)(1)(A)); 
                                or
                                    (VI) grants for rural housing 
                                preservation under section 533 (42 
                                U.S.C. 1490m); or
                          (ii) conducted under any rural development 
                      program, including a program authorized under--
                                    (I) the Consolidated Farm and Rural 
                                Development Act (7 U.S.C. 1921 et seq.);
                                    (II) subtitle G of title XVI and 
                                title XXIII of the Food, Agriculture, 
                                Conservation, and Trade Act of 1990;
                                    (III) title V of the Rural 
                                Development Act of 1971 (7 U.S.C. 2661 
                                et seq.); or
                                    (IV) section 1323(b) of the Food 
                                Security Act of 1985 (Public Law 99-198; 
                                7 U.S.C. 1932 note).
                    (B) Limitation on programs funded.--The Secretary 
                may not expend funds made available to carry out 
                activities described in subparagraph (A) for any 
                activity that did not receive appropriations for fiscal 
                year 1995. Funds expended under this section for any 
                program purpose shall be spent in accordance with and 
                subject to the applicable program limitations, 
                restrictions, and priorities found in the underlying 
                program authority and this Act.
                    (C) Limitation on housing assistance.--Not more than 
                20 percent of the funds made available to carry out 
                activities described in subparagraph (A) shall be made 
                available to carry out activities described in 
                subparagraph (A)(i).
                    (D) Disclosure of allocation.--For any fiscal year, 
                the Secretary shall not disclose the allocation of funds 
                under this section for any activity described in 
                subparagraph (A) until the date that is 1 day after the 
                date of enactment of legislation authorizing 
                appropriations for the Department of Agriculture for any 
                period in the fiscal year.
            (2) Research.--
                    (A) In general.--The Secretary may use the funds in 
                the Account for research, extension, and education 
                grants to--
                          (i) increase international competitiveness, 
                      efficiency, and farm profitability;
                          (ii) reduce economic and health risks;
                          (iii) conserve and enhance natural resources;
                          (iv) develop new crops, new crop uses, and new 
                      agricultural applications of biotechnology;
                          (v) enhance animal agricultural resources;
                          (vi) preserve plant and animal germplasm;

[[Page 110 STAT. 1154]]

                          (vii) increase economic opportunities in 
                      farming and rural communities; and
                          (viii) expand locally-owned value-added 
                      processing.
                    (B) Eligible grantee.--The Secretary may make a 
                grant under this paragraph to--
                          (i) a Federal research agency;
                          (ii) a national laboratory;
                          (iii) a college or university or a research 
                      foundation maintained by a college or university; 
                      or
                          (iv) a private research organization with an 
                      established and demonstrated capacity to perform 
                      research or technology transfer.
                    (C) Use of grant.--
                          (i) In general.--A grant made under this 
                      paragraph may be used by a grantee for 1 or more 
                      of the following uses:
                                    (I) Outcome-oriented research at the 
                                discovery end of the spectrum to provide 
                                breakthrough results.
                                    (II) Exploratory and advanced 
                                development and technology with well-
                                identified outcomes.
                                    (III) A national, regional, or 
                                multi-State program oriented primarily 
                                toward extension programs and education 
                                programs demonstrating and supporting 
                                the competitiveness of United States 
                                agriculture.
                          (ii) Smaller institutions.--Of the amounts 
                      made available for activities described in this 
                      paragraph, not less than 15 percent shall be 
                      awarded to colleges, universities, or research 
                      foundations eligible for a grant under 
                      subparagraph (B)(iii) that rank in the lowest \1/
                      3\ of such colleges, universities, and foundations 
                      on the basis of Federal research funds received 
                      under a provision of law other than this section.
                    (D) Administration.--
                          (i) Priority.--In administering this 
                      paragraph, the Secretary shall--
                                    (I) establish criteria for 
                                allocating grants based on the 
                                priorities in subparagraph (A) and in 
                                consultation with the National 
                                Agricultural Research, Extension, 
                                Education, and Economics Advisory Board 
                                established under section 1408 of the 
                                National Agricultural Research, 
                                Extension, and Teaching Policy Act of 
                                1977 (7 U.S.C. 3123);
                                    (II) seek and accept proposals for 
                                grants;
                                    (III) determine the relevance and 
                                merit of proposals through a system of 
                                peer review and review by the National 
                                Agricultural Research, Extension, 
                                Education, and Economics Advisory Board; 
                                and
                                    (IV) award grants on the basis of 
                                merit, quality, and relevance to 
                                advancing the purposes of federally 
                                supported agricultural research, 
                                extension, and education provided in 
                                section 1402 of the National 
                                Agricultural Research, Extension, and 
                                Teaching Policy Act of 1977 (7 U.S.C. 
                                3101).

[[Page 110 STAT. 1155]]

                          (ii) Competitive basis.--A grant under this 
                      paragraph shall be awarded on a competitive basis.
                          (iii) Terms.--A grant under this paragraph 
                      shall have a term that does not exceed 5 years.
                          (iv) Matching funds.--As a condition of making 
                      a grant under this paragraph, the Secretary shall 
                      require the funding of the grant with equal 
                      matching funds from a non-Federal source if the 
                      grant is--
                                    (I) for applied research that is 
                                commodity-specific; and
                                    (II) not of national scope.
                          (v) Delegation.--The Secretary shall 
                      administer this section through the Cooperative 
                      State Research, Education, and Extension Service 
                      of the Department of Agriculture.
                          (vi) Availability of funds.--Funds shall be 
                      available for obligation under this paragraph for 
                      a 2-year period.
                          (vii) Administrative costs.--The Secretary may 
                      use not more than 4 percent of the funds made 
                      available for activities described in this 
                      paragraph for administrative costs incurred by the 
                      Secretary in carrying out this paragraph.
                          (viii) Buildings.--Funds made available for 
                      activities described in this paragraph shall not 
                      be used for the construction of a new building or 
                      the acquisition, expansion, remodeling, or 
                      alteration of an existing building (including site 
                      grading and improvement and architect fees).

    (d) Limitations.--Amounts in the Account may not be used for an 
activity described in subsection (c) for a fiscal year if the program 
funding level for the fiscal year for the activity is less than 90 
percent of the amount appropriated for the activity for fiscal year 
1996, adjusted for inflation.

SEC. 794. UNDER SECRETARY OF AGRICULTURE FOR RURAL ECONOMIC AND 
            COMMUNITY DEVELOPMENT RENAMED THE UNDER SECRETARY OF 
            AGRICULTURE FOR RURAL DEVELOPMENT.

    (a) In General.--Section 231 of the Department of Agriculture 
Reorganization Act of 1994 (7 U.S.C. 6941) is amended--
            (1) in the section heading, by striking ``economic and 
        community''; and
            (2) by striking ``Economic and Community'' each place such 
        term appears in subsections (a), (b), and (c).

    (b) Conforming Amendment.--Section 5314 of title 5, United States 
Code, is amended by striking ``Economic and Community''.

[[Page 110 STAT. 1156]]

             TITLE VIII--RESEARCH, EXTENSION, AND EDUCATION

   Subtitle A--Modification and Extension of Activities Under 1977 Act

SEC. 801. PURPOSES OF AGRICULTURAL RESEARCH, EXTENSION, AND EDUCATION.

    Section 1402 of the National Agricultural Research, Extension, and 
Teaching Policy Act of 1977 (7 U.S.C. 3101) is amended to read as 
follows:

``SEC. 1402. PURPOSES OF AGRICULTURAL RESEARCH, EXTENSION, AND 
            EDUCATION.

    ``The purposes of federally supported agricultural research, 
extension, and education are to--
            ``(1) enhance the competitiveness of the United States 
        agriculture and food industry in an increasingly competitive 
        world environment;
            ``(2) increase the long-term productivity of the United 
        States agriculture and food industry while maintaining and 
        enhancing the natural resource base on which rural America and 
        the United States agricultural economy depend;
            ``(3) develop new uses and new products for agricultural 
        commodities, such as alternative fuels, and develop new crops;
            ``(4) support agricultural research and extension to promote 
        economic opportunity in rural communities and to meet the 
        increasing demand for information and technology transfer 
        throughout the United States agriculture industry;
            ``(5) improve risk management in the United States 
        agriculture industry;
            ``(6) improve the safe production and processing of, and 
        adding of value to, United States food and fiber resources using 
        methods that maintain the balance between yield and 
        environmental soundness;
            ``(7) support higher education in agriculture to give the 
        next generation of Americans the knowledge, technology, and 
        applications necessary to enhance the competitiveness of United 
        States agriculture; and
            ``(8) maintain an adequate, nutritious, and safe supply of 
        food to meet human nutritional needs and requirements.''.

SEC. 802. NATIONAL AGRICULTURAL RESEARCH, EXTENSION, EDUCATION, AND 
            ECONOMICS ADVISORY BOARD.

    (a) In General.--Section 1408 of the National Agricultural Research, 
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3123) is amended to 
read as follows:

``SEC. 1408. NATIONAL AGRICULTURAL RESEARCH, EXTENSION, EDUCATION, AND 
            ECONOMICS ADVISORY BOARD.

    ``(a) Establishment.--The Secretary shall establish within the 
Department of Agriculture a board to be known as the `National 
Agricultural Research, Extension, Education, and Economics Advisory 
Board'.
    ``(b) Membership.--

[[Page 110 STAT. 1157]]

            ``(1) In general.--The Advisory Board shall consist of 30 
        members, appointed by the Secretary.
            ``(2) Selection of members.--The Secretary shall appoint 
        members of the Advisory Board from nominations submitted by 
        organizations, associations, societies, councils, federations, 
        groups, and companies fitting the criteria specified in 
        paragraph (3).
            ``(3) Membership categories.--The Advisory Board shall 
        consist of members from each of the following categories:
                    ``(A) 1 member representing a national farm 
                organization.
                    ``(B) 1 member representing farm cooperatives.
                    ``(C) 1 member actively engaged in the production of 
                a food animal commodity.
                    ``(D) 1 member actively engaged in the production of 
                a plant commodity.
                    ``(E) 1 member representing a national animal 
                commodity organization.
                    ``(F) 1 member representing a national crop 
                commodity organization.
                    ``(G) 1 member representing a national aquaculture 
                association.
                    ``(H) 1 member representing a national food animal 
                science society.
                    ``(I) 1 member representing a national crop, soil, 
                agronomy, horticulture, or weed science society.
                    ``(J) 1 member representing a national food science 
                organization.
                    ``(K) 1 member representing a national human health 
                association.
                    ``(L) 1 member representing a national nutritional 
                science society.
                    ``(M) 1 member representing the land-grant colleges 
                and universities eligible to receive funds under the Act 
                of July 2, 1862 (7 U.S.C. 301 et seq.).
                    ``(N) 1 member representing the land-grant colleges 
                and universities eligible to receive funds under the Act 
                of August 30, 1890 (7 U.S.C. 321 et seq.), including 
                Tuskegee University.
                    ``(O) 1 member representing the 1994 Institutions 
                (as defined in section 532 of the Equity in Educational 
                Land-Grant Status Act of 1994 (Public Law 103-382; 7 
                U.S.C. 301 note)).
                    ``(P) 1 member representing Hispanic-serving 
                institutions.
                    ``(Q) 1 member representing the American Colleges of 
                Veterinary Medicine.
                    ``(R) 1 member representing that portion of the 
                scientific community not closely associated with 
                agriculture.
                    ``(S) 1 member engaged in the transportation of food 
                and agricultural products to domestic and foreign 
                markets.
                    ``(T) 1 member representing food retailing and 
                marketing interests.
                    ``(U) 1 member representing food and fiber 
                processors.
                    ``(V) 1 member actively engaged in rural economic 
                development.

[[Page 110 STAT. 1158]]

                    ``(W) 1 member representing a national consumer 
                interest group.
                    ``(X) 1 member representing a national forestry 
                group.
                    ``(Y) 1 member representing a national conservation 
                or natural resource group.
                    ``(Z) 1 member representing private sector 
                organizations involved in international development.
                    ``(AA) 1 member representing an agency within the 
                Department of Agriculture that lacks research 
                capabilities.
                    ``(BB) 1 member representing a research agency of 
                the Federal Government (other than the Department of 
                Agriculture).
                    ``(CC) 1 member representing a national social 
                science association.
                    ``(DD) 1 member representing national organizations 
                directly concerned with agricultural research, 
                education, and extension.
            ``(4) Ex officio members.--The Secretary, the Under 
        Secretary of Agriculture for Research, Education, and Economics, 
        the Administrator of the Agricultural Research Service, the 
        Administrator of the Cooperative State Research, Education, and 
        Extension Service, the Administrator of the Economic Research 
        Service, and the Administrator of the National Agricultural 
        Statistics Service shall serve as ex officio members of the 
        Advisory Board.
            ``(5) Officers.--At the first meeting of the Advisory Board 
        each year, the members shall elect from among the members of the 
        Advisory Board a chairperson, vice chairperson, and 7 additional 
        members to serve on the executive committee established under 
        paragraph (6).
            ``(6) Executive committee.--The Advisory Board shall 
        establish an executive committee charged with the responsibility 
        of working with the Secretary and officers and employees of the 
        Department of Agriculture to summarize and disseminate the 
        recommendations of the Advisory Board.

    ``(c) Duties.--The Advisory Board shall--
            ``(1) review and provide consultation to the Secretary and 
        land-grant colleges and universities on long-term and short-term 
        national policies and priorities, as set forth in section 1402, 
        relating to agricultural research, extension, education, and 
        economics;
            ``(2) evaluate the results and effectiveness of agricultural 
        research, extension, education, and economics with respect to 
        the policies and priorities;
            ``(3) review and make recommendations to the Under Secretary 
        of Agriculture for Research, Education, and Economics on the 
        research, extension, education, and economics portion of the 
        draft strategic plan required under section 306 of title 5, 
        United States Code; and
            ``(4) review the mechanisms of the Department of Agriculture 
        for technology assessment (which should be conducted by 
        qualified professionals) for the purposes of--
                    ``(A) performance measurement and evaluation of the 
                implementation by the Secretary of the strategic plan 
                required under section 306 of title 5, United States 
                Code;
                    ``(B) implementation of the national research 
                policies and priorities set forth in section 1402; and

[[Page 110 STAT. 1159]]

                    ``(C) the development of mechanisms for the 
                assessment of emerging public and private agricultural 
                research and technology transfer initiatives.

    ``(d) Consultation.--In carrying out this section, the Advisory 
Board shall solicit opinions and recommendations from persons who will 
benefit from and use federally funded agricultural research, extension, 
education, and economics.
    ``(e) Appointment.--A member of the Advisory Board shall be 
appointed by the Secretary for a term of up to 3 years. The members of 
the Advisory Board shall be appointed to serve staggered terms.
    ``(f) Federal Advisory Committee Act.--The Advisory Board shall be 
deemed to have filed a charter for the purpose of section 9(c) of the 
Federal Advisory Committee Act (5 U.S.C. App.).
    ``(g) Termination.--The Advisory Board shall remain in existence 
until September 30, 2002.''.
    (b) Conforming Amendments.--
            (1) Section 1404(1) of the National Agricultural Research, 
        Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3103(1)) is 
        amended by striking ``National Agricultural Research and 
        Extension Users Advisory Board'' and inserting ``National 
        Agricultural Research, Extension, Education, and Economics 
        Advisory Board''.
            (2) Section 1410(2) of the National Agricultural Research, 
        Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3125(2)) is 
        amended by striking ``the recommendations of the Advisory Board 
        developed under section 1408(g),'' and inserting ``any 
        recommendations of the Advisory Board''.
            (3) The last sentence of section 4(a) of the Renewable 
        Resources Extension Act of 1978 (16 U.S.C. 1673(a)) is amended 
        by striking ``National Agricultural Research and Extension Users 
        Advisory Board'' and inserting ``National Agricultural Research, 
        Extension, Education, and Economics Advisory Board''.

SEC. 803. FEDERAL ADVISORY COMMITTEE ACT EXEMPTION FOR FEDERAL-STATE 
            COOPERATIVE PROGRAMS.

    Section 1409A of the National Agricultural Research, Extension, and 
Teaching Policy Act of 1977 (7 U.S.C. 3124a) is amended by adding at the 
end the following:
    ``(e) Applicability of Federal Advisory Committee Act.--
            ``(1) Public meetings.--All meetings of any entity described 
        in paragraph (3) shall be publicly announced in advance and 
        shall be open to the public. <<NOTE: Records.>>  Detailed 
        minutes of meetings and other appropriate records of the 
        activities of such an entity shall be kept and made available to 
        the public on request.
            ``(2) Exemption.--The Federal Advisory Committee Act (5 
        U.S.C. App.) and title XVIII of this Act shall not apply to any 
        entity described in paragraph (3).
            ``(3) Entities described.--This subsection shall apply to 
        any committee, board, commission, panel, or task force, or 
        similar entity that--
                    ``(A) is created for the purpose of cooperative 
                efforts in agricultural research, extension, or 
                teaching; and
                    ``(B) consists entirely of--
                          ``(i) full-time Federal employees; and

[[Page 110 STAT. 1160]]

                          ``(ii) one or more individuals who are 
                      employed by, or are officials of--
                                    ``(I) a State cooperative 
                                institution or State cooperative agency; 
                                or
                                    ``(II) a public college or 
                                university or other postsecondary 
                                institution.''.

SEC. 804. COORDINATION AND PLANNING OF AGRICULTURAL RESEARCH, EXTENSION, 
            AND EDUCATION.

    The National Agricultural Research, Extension, and Teaching Policy 
Act of 1977 is amended by inserting after section 1413 (7 U.S.C. 3128) 
the following:

``SEC. 1413A. <<NOTE: 7 USC 3129.>>  ACCOUNTABILITY.

    ``(a) Review of Information Technology Systems.--The Secretary shall 
conduct a comprehensive review of state-of-the-art information 
technology systems that are available for use in developing the system 
required by subsection (b).
    ``(b) Monitoring and Evaluation System.--The Secretary shall develop 
and carry out a system to monitor and evaluate agricultural research and 
extension activities conducted or supported by the Department of 
Agriculture that will enable the Secretary to measure the impact and 
effectiveness of research, extension, and education programs according 
to priorities, goals, and mandates established by law. In developing the 
system, the Secretary shall incorporate information transfer 
technologies to optimize public access to research information.
    ``(c) Consistency With Other Requirements.--The Secretary shall 
develop and implement the system in a manner consistent with the 
Government Performance and Results Act of 1993 (Public Law 103-62; 107 
Stat. 285) and amendments made by the Act.
    ``(d) Authorization of Appropriations.--There are authorized to be 
appropriated such sums as are necessary to carry out this section.

``SEC. 1413B. <<NOTE: 7 USC 3129a.>>  FEDERAL ADVISORY COMMITTEE ACT 
            EXEMPTION FOR COMPETITIVE RESEARCH, EXTENSION, AND EDUCATION 
            PROGRAMS.

    ``The Federal Advisory Committee Act (5 U.S.C. App.) and title XVIII 
of this Act shall not apply to any committee, board, commission, panel, 
or task force, or similar entity, created solely for the purpose of 
reviewing applications or proposals requesting funding under any 
competitive research, extension, or education program carried out by the 
Secretary.''.

SEC. 805. GRANTS AND FELLOWSHIPS FOR FOOD AND AGRICULTURAL SCIENCES 
            EDUCATION.

    (a) Purpose of Grants.--Section 1417(b) of the National Agricultural 
Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3152(b)) 
is amended by striking paragraph (4) and inserting the following:
            ``(4) to design and implement food and agricultural programs 
        to build teaching and research capacity at colleges and 
        universities having significant minority enrollments;''.

    (b) Research Foundations.--Section 1417(c) of the National 
Agricultural Research, Extension, and Teaching Policy Act of 1977 (7 
U.S.C. 3152(c)) is amended by adding at the end the following:

[[Page 110 STAT. 1161]]

            ``(3) Research foundations.--An eligible college or 
        university under subsection (b) includes a research foundation 
        maintained by the college or university.''.

    (c) Extension of Program.--Section 1417(i) of the National 
Agricultural Research, Extension, and Teaching Policy Act of 1977 (7 
U.S.C. 3152(i)) is amended by striking ``1995'' and inserting ``1997''.
    (d) Secondary Education and 2-Year Postsecondary Education Teaching 
Programs.--Section 1417 of the National Agricultural Research, 
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3152) is amended--
            (1) by redesignating subsections (h) and (i) as subsections 
        (i) and (j), respectively; and
            (2) by inserting after subsection (g) the following:

    ``(h) Secondary Education and 2-Year Postsecondary Education 
Teaching Programs.--
            ``(1) Definitions.--In this subsection:
                    ``(A) Institution of higher education.--The term 
                `institution of higher education' has the meaning given 
                the term in section 1201(a) of the Higher Education Act 
                of 1965 (20 U.S.C. 1141(a)).
                    ``(B) Secondary school.--The term `secondary school' 
                has the meaning given the term in section 14101(25) of 
                the Elementary and Secondary Education Act of 1965 (20 
                U.S.C. 8801(25)).
            ``(2) Agriscience and agribusiness education.--The Secretary 
        shall--
                    ``(A) promote and strengthen secondary education and 
                2-year postsecondary education in agriscience and 
                agribusiness in order to help ensure the existence in 
                the United States of a qualified workforce to serve the 
                food and agricultural sciences system; and
                    ``(B) promote complementary and synergistic linkages 
                among secondary, 2-year postsecondary, and higher 
                education programs in the food and agricultural sciences 
                in order to promote excellence in education and 
                encourage more young Americans to pursue and complete a 
                baccalaureate or higher degree in the food and 
                agricultural sciences.
            ``(3) Grants.--The Secretary may make competitive or 
        noncompetitive grants, for grant periods not to exceed 5 years, 
        to public secondary schools, and institutions of higher 
        education that award an associate's degree, that the Secretary 
        determines have made a commitment to teaching agriscience and 
        agribusiness--
                    ``(A) to enhance curricula in agricultural 
                education;
                    ``(B) to increase faculty teaching competencies;
                    ``(C) to interest young people in pursuing higher 
                education in order to prepare for scientific and 
                professional careers in the food and agricultural 
                sciences;
                    ``(D) to promote the incorporation of agriscience 
                and agribusiness subject matter into other instructional 
                programs, particularly classes in science, business, and 
                consumer education;
                    ``(E) to facilitate joint initiatives by the grant 
                recipient with other secondary schools, institutions of 
                higher education that award an associate's degree, and 
                institutions

[[Page 110 STAT. 1162]]

                of higher education that award a bachelor's degree to 
                maximize the development and use of resources, such as 
                faculty, facilities, and equipment, to improve 
                agriscience and agribusiness education; and
                    ``(F) to support other initiatives designed to meet 
                local, State, regional, or national needs related to 
                promoting excellence in agriscience and agribusiness 
                education.''.

SEC. 806. GRANTS FOR RESEARCH ON THE PRODUCTION AND MARKETING OF 
            ALCOHOLS AND INDUSTRIAL HYDROCARBONS FROM AGRICULTURAL 
            COMMODITIES AND FOREST PRODUCTS.

    Section 1419(d) of the National Agricultural Research, Extension, 
and Teaching Policy Act of 1977 (7 U.S.C. 3154(d)) is amended by 
striking ``1995'' and inserting ``1997''.

SEC. 807. POLICY RESEARCH CENTERS.

    The National Agricultural Research, Extension, and Teaching Policy 
Act of 1977 is amended by inserting after section 1419 (7 U.S.C. 3154) 
the following:

``SEC. 1419A. <<NOTE: 7 USC 3155.>>  POLICY RESEARCH CENTERS.

    ``(a) In General.--Consistent with this section, the Secretary may 
make grants, competitive grants, and special research grants to, and 
enter into cooperative agreements and other contracting instruments 
with, policy research centers described in subsection (b) to conduct 
research and education programs that are objective, operationally 
independent, and external to the Federal Government and that concern the 
effect of public policies on--
            ``(1) the farm and agricultural sectors;
            ``(2) the environment;
            ``(3) rural families, households, and economies; and
            ``(4) consumers, food, and nutrition.

    ``(b) Eligible Recipients.--State agricultural experiment stations, 
colleges and universities, other research institutions and 
organizations, private organizations, corporations, and individuals 
shall be eligible to apply for funding under subsection (a).
    ``(c) Activities.--Under this section, funding may be provided for 
disciplinary and interdisciplinary research and education concerning 
policy research activities consistent with this section, including 
activities that--
            ``(1) quantify the implications of public policies and 
        regulations;
            ``(2) develop theoretical and research methods;
            ``(3) collect and analyze data for policymakers, analysts, 
        and individuals; and
            ``(4) develop programs to train analysts.

    ``(d) Authorization of Appropriations.--There are authorized to be 
appropriated such sums as are necessary to carry out this section for 
fiscal years 1996 and 1997.''.

SEC. 808. HUMAN NUTRITION INTERVENTION AND HEALTH PROMOTION RESEARCH 
            PROGRAM.

    The National Agricultural Research, Extension, and Teaching Policy 
Act of 1977 is amended by striking section 1424 (7 U.S.C. 3174) and 
inserting the following:

[[Page 110 STAT. 1163]]

``SEC. 1424. <<NOTE: 7 USC 3174.>>  HUMAN NUTRITION INTERVENTION AND 
            HEALTH PROMOTION RESEARCH PROGRAM.

    ``(a) Authority of Secretary.--The Secretary may establish, and 
award grants for projects for, a multi-year research initiative on human 
nutrition intervention and health promotion.
    ``(b) Emphasis of Initiative.--In administering human nutrition 
research projects under this section, the Secretary shall give specific 
emphasis to--
            ``(1) coordinated longitudinal research assessments of 
        nutritional status; and
            ``(2) the implementation of unified, innovative intervention 
        strategies,

to identify and solve problems of nutritional inadequacy and contribute 
to the maintenance of health, well-being, performance, and productivity 
of individuals, thereby reducing the need of the individuals to use the 
health care system and social programs of the United States.
    ``(c) Administration of Funds.--The Administrator of the 
Agricultural Research Service shall administer funds made available to 
carry out this section to ensure a coordinated approach to health and 
nutrition research efforts.
    ``(d) Authorization of Appropriations.--There are authorized to be 
appropriated such sums as are necessary to carry out this section for 
fiscal years 1996 and 1997.

``SEC. 1424A. <<NOTE: 7 USC 3174a.>>  PILOT RESEARCH PROGRAM TO COMBINE 
            MEDICAL AND AGRICULTURAL RESEARCH.

    ``(a) Findings.--Congress finds the following:
            ``(1) Although medical researchers in recent years have 
        demonstrated that there are several naturally occurring 
        compounds in many vegetables and fruits that can aid in the 
        prevention of certain forms of cancer, coronary heart disease, 
        stroke, and atherosclerosis, there has been almost no research 
        conducted to enhance these compounds in food plants by modern 
        breeding and molecular genetic methods.
            ``(2) By linking the appropriate medical and agricultural 
        research scientists in a highly-focused, targeted research 
        program, it should be possible to develop new varieties of 
        vegetables and fruits that would provide greater prevention of 
        diet-related diseases that are a major cause of death in the 
        United States.

    ``(b) Pilot Research Program.--The Secretary shall conduct, through 
the Cooperative State Research, Education, and Extension Service, a 
pilot research program to link major cancer and heart and other 
circulatory disease research efforts with agricultural research efforts 
to identify compounds in vegetables and fruits that prevent these 
diseases. Using information derived from such combined research efforts, 
the Secretary shall assist in the development of new varieties of 
vegetables and fruits having enhanced therapeutic properties for disease 
prevention.
    ``(c) Agreements.--The Secretary shall carry out the pilot program 
through agreements entered into with land-grant colleges or 
universities, other universities, State agricultural experiment 
stations, the State cooperative extension services, nonprofit 
organizations with demonstrable expertise, or Federal or State 
governmental entities. The Secretary shall enter into the agreements on 
a competitive basis.

[[Page 110 STAT. 1164]]

    ``(d) Authorization of Appropriations.--There are authorized to be 
appropriated $10,000,000 for fiscal year 1997 to carry out the pilot 
program.''.

SEC. 809. FOOD AND NUTRITION EDUCATION PROGRAM.

    Section 1425(c)(3) of the National Agricultural Research, Extension, 
and Teaching Policy Act of 1977 (7 U.S.C. 3175(c)(3)) is amended by 
striking ``$63,000,000'' and all that follows through ``fiscal year 
1995'' and inserting ``, $83,000,000 for each of fiscal years 1996 and 
1997''.

SEC. 810. PURPOSES AND FINDINGS RELATING TO ANIMAL HEALTH AND DISEASE 
            RESEARCH.

    Section 1429 of the National Agricultural Research, Extension, and 
Teaching Policy Act of 1977 (7 U.S.C. 3191) is amended to read as 
follows:

``SEC. 1429. PURPOSES AND FINDINGS RELATING TO ANIMAL HEALTH AND DISEASE 
            RESEARCH.

    ``(a) Purposes.--The purposes of this subtitle are to--
            ``(1) promote the general welfare through the improved 
        health and productivity of domestic livestock, poultry, aquatic 
        animals, and other income-producing animals that are essential 
        to the food supply of the United States and the welfare of 
        producers and consumers of animal products;
            ``(2) improve the health of horses;
            ``(3) facilitate the effective treatment of, and, to the 
        extent possible, prevent animal and poultry diseases in both 
        domesticated and wild animals that, if not controlled, would be 
        disastrous to the United States livestock and poultry industries 
        and endanger the food supply of the United States;
            ``(4) improve methods for the control of organisms and 
        residues in food products of animal origin that could endanger 
        the human food supply;
            ``(5) improve the housing and management of animals to 
        improve the well-being of livestock production species;
            ``(6) minimize livestock and poultry losses due to 
        transportation and handling;
            ``(7) protect human health through control of animal 
        diseases transmissible to humans;
            ``(8) improve methods of controlling the births of predators 
        and other animals; and
            ``(9) otherwise promote the general welfare through expanded 
        programs of research and extension to improve animal health.

    ``(b) Findings.--Congress finds that--
            ``(1) the total animal health and disease research and 
        extension efforts of State colleges and universities and of the 
        Federal Government would be more effective if there were close 
        coordination between the efforts; and
            ``(2) colleges and universities having accredited schools or 
        colleges of veterinary medicine and State agricultural 
        experiment stations that conduct animal health and disease 
        research are especially vital in training research workers in 
        animal health and related disciplines.''.

[[Page 110 STAT. 1165]]

SEC. 811. ANIMAL HEALTH AND DISEASE CONTINUING RESEARCH.

    Section 1433 of the National Agricultural Research, Extension, and 
Teaching Policy Act of 1977 (7 U.S.C. 3195) is amended--
            (1) in the first sentence of subsection (a), by striking 
        ``1995'' and inserting ``1997'';
            (2) in subsection (b)(2)--
                    (A) by striking ``domestic livestock and poultry'' 
                each place it appears and inserting ``domestic 
                livestock, poultry, and commercial aquaculture 
                species''; and
                    (B) in the second sentence, by striking ``horses, 
                and poultry'' and inserting ``horses, poultry, and 
                commercial aquaculture species'';
            (3) in subsection (d), by striking ``domestic livestock and 
        poultry'' and inserting ``domestic livestock, poultry, and 
        commercial aquaculture species''; and
            (4) in subsection (f), by striking ``domestic livestock and 
        poultry'' and inserting ``domestic livestock, poultry, and 
        commercial aquaculture species''.

SEC. 812. ANIMAL HEALTH AND DISEASE NATIONAL OR REGIONAL RESEARCH.

    Section 1434 of the National Agricultural Research, Extension, and 
Teaching Policy Act of 1977 (7 U.S.C. 3196) is amended--
            (1) in subsection (a)--
                    (A) by inserting ``or national or regional problems 
                relating to pre-harvest, on-farm food safety, or animal 
                well-being,'' after ``problems,''; and
                    (B) by striking ``1995'' and inserting ``1997'';
            (2) in subsection (b), by striking ``eligible institutions'' 
        and inserting ``State agricultural experiment stations, colleges 
        and universities, other research institutions and organizations, 
        Federal agencies, private organizations or corporations, and 
        individuals'';
            (3) in subsection (c)--
                    (A) in the first sentence, by inserting ``, food 
                safety, and animal well-being'' after ``animal health 
                and disease''; and
                    (B) in the fourth sentence--
                          (i) by redesignating paragraphs (2) and (3) as 
                      paragraphs (4) and (5), respectively; and
                          (ii) by inserting after paragraph (1) the 
                      following:
            ``(2) any food safety problem that has a significant pre-
        harvest (on-farm) component and is recognized as posing a 
        significant health hazard to the consuming public;
            ``(3) issues of animal well-being related to production 
        methods that will improve the housing and management of animals 
        to improve the well-being of livestock production species;'';
            (4) in the first sentence of subsection (d), by striking 
        ``to eligible institutions''; and
            (5) by adding at the end the following:

    ``(f) Applicability of Federal Advisory Committee Act.--The Federal 
Advisory Committee Act (5 U.S.C. App.) and title XVIII of this Act shall 
not apply to a panel or board created solely for the purpose of 
reviewing applications or proposals submitted under this subtitle.''.

[[Page 110 STAT. 1166]]

SEC. 813. GRANT PROGRAM TO UPGRADE AGRICULTURAL AND FOOD SCIENCES 
            FACILITIES AT 1890 LAND-GRANT COLLEGES.

    Section 1447(b) of the National Agricultural Research, Extension, 
and Teaching Policy Act of 1977 (7 U.S.C. 3222b(b)) is amended by 
striking ``$8,000,000 for each of the fiscal years 1991 through 1995'' 
and inserting ``, $15,000,000 for each of fiscal years 1996 and 1997''.

SEC. 814. NATIONAL RESEARCH AND TRAINING CENTENNIAL CENTERS.

    Section 1448 of the National Agricultural Research, Extension, and 
Teaching Policy Act of 1977 (7 U.S.C. 3222c) is amended--
            (1) in subsection (a)(1), by inserting ``, or fiscal years 
        1996 and 1997,'' after ``1995''; and
            (2) in subsection (f), by striking ``1995'' and inserting 
        ``1997''.

SEC. 815. PROGRAMS FOR HISPANIC-SERVING INSTITUTIONS.

    (a) In General.--The National Agricultural Research, Extension, and 
Teaching Policy Act of 1977 is amended by inserting after section 1448 
(7 U.S.C. 3222c) the following:

        ``Subtitle H--Programs for Hispanic-Serving Institutions

``SEC. 1455. <<NOTE: 7 USC 3241.>>  EDUCATION GRANTS PROGRAMS FOR 
            HISPANIC-SERVING INSTITUTIONS.

    ``(a) Grant Authority.--The Secretary may make competitive grants 
(or grants without regard to any requirement for competition) to 
Hispanic-serving institutions for the purpose of promoting and 
strengthening the ability of Hispanic-serving institutions to carry out 
education, applied research, and related community development programs.
    ``(b) Use of Grant Funds.--Grants made under this section shall be 
used--
            ``(1) to support the activities of consortia of Hispanic-
        serving institutions to enhance educational equity for 
        underrepresented students;
            ``(2) to strengthen institutional educational capacities, 
        including libraries, curriculum, faculty, scientific 
        instrumentation, instruction delivery systems, and student 
        recruitment and retention, in order to respond to identified 
        State, regional, national, or international educational needs in 
        the food and agricultural sciences;
            ``(3) to attract and support undergraduate and graduate 
        students from underrepresented groups in order to prepare them 
        for careers related to the food, agricultural, and natural 
        resource systems of the United States, beginning with the 
        mentoring of students at the high school level and continuing 
        with the provision of financial support for students through 
        their attainment of a doctoral degree; and
            ``(4) to facilitate cooperative initiatives between 2 or 
        more Hispanic-serving institutions, or between Hispanic-serving 
        institutions and units of State government or the private 
        sector, to maximize the development and use of resources, such 
        as faculty, facilities, and equipment, to improve food and 
        agricultural sciences teaching programs.

[[Page 110 STAT. 1167]]

    ``(c) Authorization of Appropriations.--There are authorized to be 
appropriated to make grants under this section $20,000,000 for fiscal 
year 1997.''.
    (b) Hispanic-Serving Institution Defined.--Paragraph (9) of section 
1404 of the National Agricultural Research, Extension, and Teaching 
Policy Act of 1977 (7 U.S.C. 3103) is amended to read as follows:
            ``(9) the term `Hispanic-serving institution' has the 
        meaning given the term by section 316(b)(1) of the Higher 
        Education Act of 1965 (20 U.S.C. 1059c(b)(1));''.

SEC. 816. INTERNATIONAL AGRICULTURAL RESEARCH AND EXTENSION.

    Section 1458(a)(8) of the National Agricultural Research, Extension, 
and Teaching Policy Act of 1977 (7 U.S.C. 3291(a)(8)) is amended--
            (1) by striking ``establish'' and inserting ``continue''; 
        and
            (2) by striking ``to be''.

SEC. 817. AUTHORIZATION OF APPROPRIATIONS FOR AGRICULTURAL RESEARCH 
            PROGRAMS.

    Section 1463 of the National Agricultural Research, Extension, and 
Teaching Policy Act of 1977 (7 U.S.C. 3311) is amended by striking 
``1995'' both places it appears and inserting ``1997''.

SEC. 818. AUTHORIZATION OF APPROPRIATIONS FOR EXTENSION EDUCATION.

    Section 1464 of the National Agricultural Research, Extension, and 
Teaching Policy Act of 1977 (7 U.S.C. 3312) is amended by striking 
``fiscal year 1995'' and inserting ``each of fiscal years 1995 through 
1997''.

SEC. 819. SUPPLEMENTAL AND ALTERNATIVE CROPS RESEARCH.

    (a) Extension of Program.--Section 1473D(a) of the National 
Agricultural Research, Extension, and Teaching Policy Act of 1977 (7 
U.S.C. 3319d(a)) is amended by striking ``1995'' and inserting ``1997''.
    (b) Elimination of Pilot Nature of Program.--Section 1473D of the 
National Agricultural Research, Extension, and Teaching Policy Act of 
1977 (7 U.S.C. 3319d) is amended--
            (1) in subsection (a), by striking ``and pilot'';
            (2) in subsection (c)(2)(B), by striking ``at pilot sites'' 
        and all that follows through ``the area'';
            (3) in subsection (c)(2)(C), by striking ``from pilot 
        sites'';
            (4) in subsection (c)(2)(D)--
                    (A) by striking ``near such pilot sites''; and
                    (B) by striking ``successful pilot program'' and 
                inserting ``successful program''; and
            (5) in paragraph (3), by striking ``pilot''.

    (c) Additional Authority.--Section 1473D(c)(3) of the National 
Agricultural Research, Extension, and Teaching Policy Act of 1977 (7 
U.S.C. 3319d(c)(3)) is amended--
            (1) in subparagraph (C), by striking ``and'' at the end;
            (2) in subparagraph (D), by striking the period at the end 
        and inserting a semicolon; and
            (3) by adding at the end the following:
            ``(E) to conduct fundamental and applied research related to 
        the development of new commercial products derived from

[[Page 110 STAT. 1168]]

        natural plant material for industrial, medical, and agricultural 
        applications; and
            ``(F) to participate with colleges and universities, other 
        Federal agencies, and private sector entities in conducting 
        research described in subparagraph (E).''.

SEC. 820. AQUACULTURE ASSISTANCE PROGRAMS.

    (a) Definition.--Section 1404(3) of the National Agricultural 
Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3103(3)) 
is amended by inserting ``ornamental fish,'' after ``reptile,''.
    (b) Reports.--Section 1475 of the National Agricultural Research, 
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3322) is amended--
            (1) by striking subsection (e); and
            (2) by redesignating subsections (f) and (g) as subsections 
        (e) and (f), respectively.

    (c) Authorization of Appropriations for Aquaculture Research 
Facilities.--Section 1476(b) of the National Agricultural Research, 
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3323(b)) is amended 
by striking ``1995'' and inserting ``1997''.
    (d) Authorization of Appropriations for Research and Extension.--
Section 1477 of the National Agricultural Research, Extension, and 
Teaching Policy Act of 1977 (7 U.S.C. 3324) is amended by striking 
``1995'' and inserting ``1997''.

SEC. 821. AUTHORIZATION OF APPROPRIATIONS FOR RANGELAND RESEARCH.

    Section 1483(a) of the National Agricultural Research, Extension, 
and Teaching Policy Act of 1977 (7 U.S.C. 3336(a)) is amended by 
striking ``1995'' and inserting ``1997''.

   Subtitle B--Modification and Extension of Activities Under 1990 Act

SEC. 831. WATER QUALITY RESEARCH, EDUCATION, AND COORDINATION.

    Section 1481(d) of the Food, Agriculture, Conservation, and Trade 
Act of 1990 (7 U.S.C. 5501(d)) is amended by striking ``1995'' and 
inserting ``1997''.

SEC. 832. NATIONAL GENETICS RESOURCES PROGRAM.

    (a) Functions.--Section 1632(d) of the Food, Agriculture, 
Conservation, and Trade Act of 1990 (7 U.S.C. 5841(d)) is amended by 
striking paragraph (4) and inserting the following:
            ``(4) unless otherwise prohibited by law, have the right to 
        make available on request, without charge and without regard to 
        the country from which the request originates, the genetic 
        material that the program assembles;''.

    (b) Authorization of Appropriations.--Section 1635(b) of the Food, 
Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 5844(b)) is 
amended by striking ``1995'' and inserting ``1997''.

SEC. 833. NATIONAL AGRICULTURAL WEATHER INFORMATION SYSTEM.

    Section 1641(c) of the Food, Agriculture, Conservation, and Trade 
Act of 1990 (7 U.S.C. 5855(c)) is amended by striking ``1995'' and 
inserting ``1997''.

[[Page 110 STAT. 1169]]

SEC. 834. LIVESTOCK PRODUCT SAFETY AND INSPECTION PROGRAM.

    Section 1670(e) of the Food, Agriculture, Conservation, and Trade 
Act of 1990 (7 U.S.C. 5923(e)) is amended by striking ``1995'' and 
inserting ``1997''.

SEC. 835. PLANT GENOME MAPPING PROGRAM.

    Section 1671(g) of the Food, Agriculture, Conservation, and Trade 
Act of 1990 (7 U.S.C. 5924(g)) is amended by inserting ``for fiscal 
years 1996 and 1997'' after ``appropriated''.

SEC. 836. CERTAIN SPECIALIZED RESEARCH PROGRAMS.

    Subsections (d)(4), (e)(4), and (i) of section 1672 of the Food, 
Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 5925) are 
each amended by striking ``1995'' and inserting ``1997''.

SEC. 837. AGRICULTURAL TELECOMMUNICATIONS PROGRAM.

    Section 1673(h) of the Food, Agriculture, Conservation, and Trade 
Act of 1990 (7 U.S.C. 5926(h)) is amended by striking ``1995'' and 
inserting ``1997''.

SEC. 838. NATIONAL CENTERS FOR AGRICULTURAL PRODUCT QUALITY RESEARCH.

    (a) Purposes of National Centers.--Section 1675(a) of the Food, 
Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 5928(a)) is 
amended--
            (1) by redesignating paragraphs (5) and (6) as paragraphs 
        (6) and (7), respectively; and
            (2) by inserting after paragraph (4) the following:
            ``(5) enhance agricultural competitiveness through product 
        quality research and technology implementation;''.

    (b) Regional Basis of Centers.--Section 1675(b) of the Food, 
Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 5928(b)) is 
amended by striking paragraph (1) and inserting the following:
            ``(1) Regional basis.--The centers shall be regionally based 
        units that conduct a broad spectrum of research, development, 
        and education programs to enhance the competitiveness, quality, 
        safety and wholesomeness of agricultural products.''.

    (c) Program Plan and Review.--Section 1675(d) of the Food, 
Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 5928(b)) is 
amended--
            (1) in paragraph (1), by striking the second sentence; and
            (2) in paragraph (2), by striking ``, but not less'' and all 
        that follows through ``the Secretary''.

    (d) Authorization of Appropriations.--Section 1675(g)(1) of the 
Food, Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 
5928(g)(1)) is amended by striking ``1995'' and inserting ``1997''.

SEC. 839. RED MEAT SAFETY RESEARCH CENTER.

    Section 1676 of the Food, Agriculture, Conservation, and Trade Act 
of 1990 (7 U.S.C. 5929) is amended to read as follows:

``SEC. 1676. RED MEAT SAFETY RESEARCH CENTER.

    ``(a) <<NOTE: Grants.>>  Establishment of Center.--The Secretary of 
Agriculture shall award a grant, on a competitive basis, to a research 
facility described in subsection (b) to establish a red meat safety 
research center.

[[Page 110 STAT. 1170]]

    ``(b) Eligible Research Facility Described.--A research facility 
eligible for a grant under subsection (a) is a research facility that--
            ``(1) is part of a land-grant college or university, or 
        other federally supported agricultural research facility, 
        located in close proximity to a livestock slaughter and 
        processing facility; and
            ``(2) is staffed by professionals with a wide diversity of 
        scientific expertise covering all aspects of meat science.

    ``(c) Research Conducted.--The red meat safety research center 
established under subsection (a) shall carry out research related to 
general food safety, including--
            ``(1) the development of intervention strategies that reduce 
        microbiological contamination of carcass surfaces;
            ``(2) research regarding microbiological mapping of carcass 
        surfaces; and
            ``(3) the development of model hazard analysis and critical 
        control point plans.

    ``(d) Administration of Funds.--The Secretary of Agriculture shall 
administer funds appropriated to carry out this section.
    ``(e) Authorization of Appropriations.--There are authorized to be 
appropriated such sums as are necessary for fiscal year 1997 to carry 
out this section.''.

SEC. 840. INDIAN RESERVATION EXTENSION AGENT PROGRAM.

    Section 1677 of the Food, Agriculture, Conservation, and Trade Act 
of 1990 (7 U.S.C. 5930) is amended--
            (1) by redesignating subsection (f) as subsection (g); and
            (2) by inserting after subsection (e) the following:

    ``(f) Reduced Regulatory Burden.--On a determination by the 
Secretary of Agriculture that a program carried out under this section 
has been satisfactorily administered for not less than 2 years, the 
Secretary shall implement a reduced reapplication process for the 
continued operation of the program in order to reduce regulatory burdens 
on participating university and tribal entities.''.

SEC. 841. ASSISTIVE TECHNOLOGY PROGRAM FOR FARMERS WITH DISABILITIES.

    Section 1680 of the Food, Agriculture, Conservation, and Trade Act 
of 1990 (7 U.S.C. 5933) is amended--
            (1) in subsection (a)(6)(B), by striking ``1996'' and 
        inserting ``1997''; and
            (2) in subsection (b)(2), by striking ``1996'' and inserting 
        ``1997''.

SEC. 842. NATIONAL RURAL INFORMATION CENTER CLEARINGHOUSE.

    Section 2381(e) of the Food, Agriculture, Conservation, and Trade 
Act of 1990 (7 U.S.C. 3125b(e)) is amended by striking ``1995'' and 
inserting ``1997''.

SEC. 843. GLOBAL CLIMATE CHANGE.

    Section 2412 of the Food, Agriculture, Conservation, and Trade Act 
of 1990 (7 U.S.C. 6710) is amended by striking ``1996'' and inserting 
``1997''.

[[Page 110 STAT. 1171]]

        Subtitle C--Repeal of Certain Activities and Authorities

SEC. 851. SUBCOMMITTEE ON FOOD, AGRICULTURAL, AND FORESTRY RESEARCH.

    Section 401(h) of the National Science and Technology Policy, 
Organization, and Priorities Act of 1976 (42 U.S.C. 6651(h)) is amended 
by striking the second through fifth sentences.

SEC. 852. JOINT COUNCIL ON FOOD AND AGRICULTURAL SCIENCES.

    (a) Repeal.--Section 1407 of the National Agricultural Research, 
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3122) is repealed.
    (b) Conforming Amendments.--
            (1) Section 1405 of the National Agricultural Research, 
        Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3121) is 
        amended--
                    (A) in paragraph (5), by striking ``Joint Council, 
                Advisory Board,'' and inserting ``Advisory Board''; and
                    (B) in paragraph (11), by striking ``the Joint 
                Council,''.
            (2) Section 1410(2) of the National Agricultural Research, 
        Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3125(2)) is 
        amended by striking ``the recommendations of the Joint Council 
        developed under section 1407(f),''.
            (3) Section 1412 of the National Agricultural Research, 
        Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3127) is 
        amended--
                    (A) in the section heading, by striking ``the joint 
                council, advisory board,'' and inserting ``advisory 
                board'';
                    (B) in subsection (a)--
                          (i) by striking ``Joint Council, the Advisory 
                      Board,'' and inserting ``Advisory Board'';
                          (ii) by striking ``the cochairpersons of the 
                      Joint Council and'' each place it appears; and
                          (iii) in paragraph (2), by striking ``one 
                      shall serve as the executive secretary to the 
                      Joint Council, one shall serve as the executive 
                      secretary to the Advisory Board,'' and inserting 
                      ``one shall serve as the executive secretary to 
                      the Advisory Board''; and
                    (C) in subsections (b) and (c), by striking ``Joint 
                Council, Advisory Board,'' each place it appears and 
                inserting ``Advisory Board''.
            (4) Section 1413 of the National Agricultural Research, 
        Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3128) is 
        amended--
                    (A) in subsection (a), by striking ``Joint Council, 
                the Advisory Board,'' and inserting ``Advisory Board''; 
                and
                    (B) in subsection (b), by striking ``Joint Council, 
                Advisory Board,'' and inserting ``Advisory Board''.
            (5) Section 1434(c) of the National Agricultural Research, 
        Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3196(c)) is 
        amended--
                    (A) in the second sentence, by striking ``Joint 
                Council, the Advisory Board,'' and inserting ``Advisory 
                Board''; and

[[Page 110 STAT. 1172]]

                    (B) in the fourth sentence, by striking ``the Joint 
                Council,''.

SEC. 853. AGRICULTURAL SCIENCE AND TECHNOLOGY REVIEW BOARD.

    (a) Repeal.--Section 1408A of the National Agricultural Research, 
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3123a) is repealed.
    (b) Conforming Amendments.--
            (1) Section 1404 of the National Agricultural Research, 
        Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3103) is 
        amended--
                    (A) in paragraph (16)(F), by adding ``and'' at the 
                end;
                    (B) in paragraph (17), by striking ``; and'' at the 
                end and inserting a period; and
                    (C) by striking paragraph (18).
            (2) Section 1405(12) of the National Agricultural Research, 
        Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3121(12)) 
        is amended by striking ``, after coordination with the 
        Technology Board,''.
            (3) Section 1410(2) of the National Agricultural Research, 
        Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3125(2)) 
        (as amended by section 802(b)(2)) is amended by striking ``and 
        the recommendations of the Technology Board developed under 
        section 1408A(d)''.
            (4) Section 1412 of the National Agricultural Research, 
        Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3127) (as 
        amended by section 852(b)(3)) is amended--
                    (A) in the section heading, by striking ``and 
                technology board'';
                    (B) in subsection (a)--
                          (i) by striking ``and the Technology Board'' 
                      each place it appears; and
                          (ii) in paragraph (2), by striking ``and one 
                      shall serve as the executive secretary to the 
                      Technology Board''; and
                    (C) in subsections (b) and (c), by striking ``and 
                Technology Board'' each place it appears.
            (5) Section 1413 of the National Agricultural Research, 
        Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3128) (as 
        amended by section 852(b)(4)) is amended--
                    (A) in subsection (a), by striking ``or the 
                Technology Board''; and
                    (B) in subsection (b), by striking ``and the 
                Technology Board''.

SEC. 854. ANIMAL HEALTH SCIENCE RESEARCH ADVISORY BOARD.

    Section 1432 of the National Agricultural Research, Extension, and 
Teaching Policy Act of 1977 (7 U.S.C. 3194) is repealed.

SEC. 855. RESIDENT INSTRUCTION PROGRAM AT 1890 LAND-GRANT COLLEGES.

    Section 1446 of the National Agricultural Research, Extension, and 
Teaching Policy Act of 1977 (7 U.S.C. 3222a) is repealed.

SEC. 856. GRANTS TO STATES FOR INTERNATIONAL TRADE DEVELOPMENT CENTERS.

    Section 1458A of the National Agricultural Research, Extension, and 
Teaching Policy Act of 1977 (7 U.S.C. 3292) is repealed.

[[Page 110 STAT. 1173]]

SEC. 857. RANGELAND RESEARCH.

    (a) Reports.--Section 1481 of the National Agricultural Research, 
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3334) is repealed.
    (b) Advisory Board.--Section 1482 of the National Agricultural 
Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3335) is 
repealed.

SEC. 858. COMPOSTING RESEARCH AND EXTENSION PROGRAM.

    Section 1456 of the Food, Agriculture, Conservation, and Trade Act 
of 1990 (7 U.S.C. 3130) is repealed.

SEC. 859. EDUCATION PROGRAM REGARDING HANDLING OF AGRICULTURAL CHEMICALS 
            AND AGRICULTURAL CHEMICAL CONTAINERS.

    (a) Repeal.--Section 1499A of the Food, Agriculture, Conservation, 
and Trade Act of 1990 (7 U.S.C. 3125c) is repealed.
    (b) Conforming Amendment.--Section 1499(b) of the Food, Agriculture, 
Conservation, and Trade Act of 1990 (7 U.S.C. 5506(b)) is amended by 
striking ``and section 1499A''.

SEC. 860. PROGRAM ADMINISTRATION REGARDING SUSTAINABLE AGRICULTURE 
            RESEARCH AND EDUCATION.

    (a) Reporting Requirement.--Section 1622 of the Food, Agriculture, 
Conservation, and Trade Act of 1990 (7 U.S.C. 5812) is amended by 
striking subsection (b).
    (b) Advisory Council.--Section 1622 of the Food, Agriculture, 
Conservation, and Trade Act of 1990 (7 U.S.C. 5812) is amended--
            (1) in subsection (a)--
                    (A) by striking paragraph (2);
                    (B) in paragraph (3), by striking ``subsection (e)'' 
                and inserting ``subsection (b)''; and
                    (C) by redesignating paragraphs (3) and (4) as 
                paragraphs (2) and (3), respectively;
            (2) by striking subsections (c) and (d);
            (3) by redesignating subsection (e) as subsection (b); and
            (4) in subsection (b)(2) (as so redesignated)--
                    (A) by striking subparagraph (A); and
                    (B) by redesignating subparagraphs (B) through (F) 
                as subparagraphs (A) through (E), respectively.

    (c) Conforming Amendments.--
            (1) Section 1619(b) of the Food, Agriculture, Conservation, 
        and Trade Act of 1990 (7 U.S.C. 5801(b)) is amended--
                    (A) by striking paragraph (7); and
                    (B) by redesignating paragraphs (8), (9), and (10) 
                as paragraphs (7), (8), and (9), respectively.
            (2) Section 1621(c) of the Food, Agriculture, Conservation, 
        and Trade Act of 1990 (7 U.S.C. 5811(c)) is amended--
                    (A) in paragraph (1)--
                          (i) by striking subparagraph (A); and
                          (ii) by redesignating subparagraphs (B) 
                      through (E) as subparagraphs (A) through (D), 
                      respectively; and
                    (B) in paragraph (2)--
                          (i) by striking subparagraph (A); and
                          (ii) by redesignating subparagraphs (B) 
                      through (F) as subparagraphs (A) through (E), 
                      respectively.

[[Page 110 STAT. 1174]]

            (3) Section 1628(b) of the Food, Agriculture, Conservation, 
        and Trade Act of 1990 (7 U.S.C. 5831(b)) is amended by striking 
        ``Advisory Council, the Soil Conservation Service,'' and 
        inserting ``Natural Resources Conservation Service''.

SEC. 861. RESEARCH REGARDING PRODUCTION, PREPARATION, PROCESSING, 
            HANDLING, AND STORAGE OF AGRICULTURAL PRODUCTS.

    Subtitle E of title XVI of the Food, Agriculture, Conservation, and 
Trade Act of 1990 (7 U.S.C. 5871 et seq.) is repealed.

SEC. 862. PLANT AND ANIMAL PEST AND DISEASE CONTROL PROGRAM.

    (a) Repeal.--Subtitle F of title XVI of the Food, Agriculture, 
Conservation, and Trade Act of 1990 (7 U.S.C. 5881 et seq.) is repealed.
    (b) Conforming Amendments.--
            (1) Section 28(b)(2)(A) of the Federal Insecticide, 
        Fungicide, and Rodenticide Act (7 U.S.C. 136w-3(b)(2)(A)) is 
        amended by striking ``and the information required by section 
        1651 of the Food, Agriculture, Conservation, and Trade Act of 
        1990''.
            (2) Section 1627(a)(3) of the Food, Agriculture, 
        Conservation, and Trade Act of 1990 (7 U.S.C. 5821(a)(3)) is 
        amended by striking ``and section 1650''.
            (3) Section 1628 of the Food, Agriculture, Conservation, and 
        Trade Act of 1990 (7 U.S.C. 5831) is amended by striking 
        ``section 1650,'' each place it appears in subsections (a) and 
        (d).
            (4) Section 1629 of the Food, Agriculture, Conservation, and 
        Trade Act of 1990 (7 U.S.C. 5832) is amended by striking 
        ``section 1650,'' each place it appears in subsections (f) and 
        (g)(11).

SEC. 863. CERTAIN SPECIALIZED RESEARCH PROGRAMS.

    Section 1672 of the Food, Agriculture, Conservation, and Trade Act 
of 1990 (7 U.S.C. 5925) is amended--
            (1) by striking subsections (a), (f), (g), (h), and (j); and
            (2) by redesignating subsections (i) and (k) as subsections 
        (f) and (g), respectively.

SEC. 864. COMMISSION ON AGRICULTURAL RESEARCH FACILITIES.

    Section 1674 of the Food, Agriculture, Conservation, and Trade Act 
of 1990 (7 U.S.C. 5927) is repealed.

SEC. 865. SPECIAL GRANT TO STUDY CONSTRAINTS ON AGRICULTURAL TRADE.

    Section 1678 of the Food, Agriculture, Conservation, and Trade Act 
of 1990 (7 U.S.C. 5931) is repealed.

SEC. 866. PILOT PROJECT TO COORDINATE FOOD AND NUTRITION EDUCATION 
            PROGRAMS.

    Section 1679 of the Food, Agriculture, Conservation, and Trade Act 
of 1990 (7 U.S.C. 5932) is repealed.

SEC. 867. DEMONSTRATION AREAS FOR RURAL ECONOMIC DEVELOPMENT.

    Section 2348 of the Food, Agriculture, Conservation, and Trade Act 
of 1990 (7 U.S.C. 2662a) is repealed.

[[Page 110 STAT. 1175]]

SEC. 868. TECHNICAL ADVISORY COMMITTEE REGARDING GLOBAL CLIMATE CHANGE.

    Section 2404 of the Food, Agriculture, Conservation, and Trade Act 
of 1990 (7 U.S.C. 6703) is repealed.

SEC. 869. COMMITTEE OF NINE UNDER HATCH ACT OF 1887.

    Section 3(c)3 of the Act of March 2, 1887 (commonly known as the 
``Hatch Act of 1887''; 7 U.S.C. 361c(c)3) is amended by striking ``, and 
shall be used'' and all that follows through ``by this paragraph''.

SEC. 870. COTTON CROP REPORTS.

    The Act of May 3, 1924 (43 Stat. 115, chapter 149; 7 U.S.C. 475), is 
repealed.

SEC. 871. RURAL ECONOMIC AND BUSINESS DEVELOPMENT AND ADDITIONAL 
            RESEARCH GRANTS UNDER TITLE V OF RURAL DEVELOPMENT ACT OF 
            1972.

    Section 502 of the Rural Development Act of 1972 (7 U.S.C. 2662) is 
amended by striking subsections (g) and (j).

SEC. 872. HUMAN NUTRITION RESEARCH.

    Section 1452 of the National Agricultural Research, Extension, and 
Teaching Policy Act Amendments of 1985 (Public Law 99-198; 7 U.S.C. 3173 
note) is repealed.

SEC. 873. GRANTS TO UPGRADE 1890 LAND-GRANT COLLEGE EXTENSION 
            FACILITIES.

    Section 1416 of the National Agricultural Research, Extension, and 
Teaching Policy Act Amendments of 1981 (7 U.S.C. 3224) is repealed.

SEC. 874. INDIAN SUBSISTENCE FARMING DEMONSTRATION GRANT PROGRAM.

    Subtitle C of title IX of the Food, Agriculture, Conservation, and 
Trade Act Amendments of 1991 (Public Law 102-237; 7 U.S.C. 5930 note) is 
repealed.

              Subtitle D--Miscellaneous Research Provisions

SEC. 881. CRITICAL AGRICULTURAL MATERIALS RESEARCH.

    (a) Reports.--Section 4 of the Critical Agricultural Materials Act 
(7 U.S.C. 178b) is amended--
            (1) by striking subsection (g); and
            (2) by redesignating subsection (h) as subsection (g).

    (b) Authorization of Appropriations.--Section 16(a) of the Critical 
Agricultural Materials Act (7 U.S.C. 178n(a)) is amended by striking 
``1995'' and inserting ``1997''.

SEC. 882. MEMORANDUM OF AGREEMENT REGARDING 1994 INSTITUTIONS.

    Section 533 of the Equity in Educational Land-Grant Status Act of 
1994 (Public Law 103-382; 7 U.S.C. 301 note) is amended by adding at the 
end the following:
    ``(d) <<NOTE: Native Americans.>>  Memorandum of Agreement.--Not 
later than January 6, 1997, the Secretary shall develop and implement a 
formal memo

[[Page 110 STAT. 1176]]

randum of agreement with the 1994 Institutions to establish programs to 
ensure that tribally controlled colleges and Native American communities 
equitably participate in Department of Agriculture employment, programs, 
services, and resources.''.

SEC. 883. SMITH-LEVER ACT FUNDING FOR 1890 LAND-GRANT COLLEGES, 
            INCLUDING TUSKEGEE UNIVERSITY.

    (a) Eligibility for Funds.--Section 3(d) of the Act of May 8, 1914 
(commonly known as the ``Smith-Lever Act''; 7 U.S.C. 343(d)), is amended 
by adding at the end the following: ``A college or university eligible 
to receive funds under the Act of August 30, 1890 (7 U.S.C. 321 et 
seq.), including Tuskegee University, may apply for and receive directly 
from the Secretary of Agriculture--
            ``(1) amounts made available under this subsection after 
        September 30, 1995, to carry out programs or initiatives for 
        which no funds were made available under this subsection for 
        fiscal year 1995, or any previous fiscal year, as determined by 
        the Secretary; and
            ``(2) amounts made available after September 30, 1995, to 
        carry out programs or initiatives funded under this subsection 
        prior to that date that are in excess of the highest amount made 
        available for the programs or initiatives under this subsection 
        for fiscal year 1995, or any previous fiscal year, as determined 
        by the Secretary.''.

    (b) Conforming Amendment.--The third sentence of section 1444(a) of 
the National Agricultural Research, Extension, and Teaching Policy Act 
of 1977 (7 U.S.C. 3221(a)) is amended by inserting before the period at 
the end the following: ``, except that for the purpose of this 
calculation, the total appropriations shall not include amounts made 
available after September 30, 1995, under section 3(d) of that Act (7 
U.S.C. 343(d)), to carry out programs or initiatives for which no funds 
were made available under section 3(d) of that Act for fiscal year 1995, 
or any previous fiscal year, as determined by the Secretary, and shall 
not include amounts made available after September 30, 1995, to carry 
out programs or initiatives funded under section 3(d) of that Act prior 
to that date that are in excess of the highest amount made available for 
the programs or initiatives for fiscal year 1995, or any previous fiscal 
year, as determined by the Secretary''.

SEC. 884. AGRICULTURAL RESEARCH FACILITIES.

    (a) Research Facilities.--The Research Facilities Act (7 U.S.C. 390 
et seq.) is amended to read as follows:

``SECTION 1. <<NOTE: 7 USC 390 note.>>  SHORT TITLE.

    ``This Act may be cited as the `Research Facilities Act'.

``SEC. 2. <<NOTE: 7 USC 390.>>  DEFINITIONS.

    ``In this Act:
            ``(1) Agricultural research facility.--The term 
        `agricultural research facility' means a proposed facility for 
        research in food and agricultural sciences for which Federal 
        funds are requested by a college, university, or nonprofit 
        institution to assist in the construction, alteration, 
        acquisition, modernization, renovation, or remodeling of the 
        facility.
            ``(2) Congressional agriculture committees.--The term 
        `congressional agriculture committees' means the Committee

[[Page 110 STAT. 1177]]

        on Appropriations and the Committee on Agriculture of the House 
        of Representatives and the Committee on Appropriations and the 
        Committee on Agriculture, Nutrition, and Forestry of the Senate.
            ``(3) Food and agricultural sciences.--The term `food and 
        agricultural sciences' means--
                    ``(A) agriculture, including soil and water 
                conservation and use, the use of organic materials to 
                improve soil tilth and fertility, plant and animal 
                production and protection, and plant and animal health;
                    ``(B) the processing, distribution, marketing, and 
                utilization of food and agricultural products;
                    ``(C) forestry, including range management, 
                production of forest and range products, multiple use of 
                forests and rangelands, and urban forestry;
                    ``(D) aquaculture (as defined in section 1404(3) of 
                the National Agricultural Research, Extension, and 
                Teaching Policy Act of 1977 (7 U.S.C. 3103(3));
                    ``(E) human nutrition;
                    ``(F) production inputs, such as energy, to improve 
                productivity; and
                    ``(G) germ plasm collection and preservation.
            ``(4) Secretary.--The term `Secretary' means the Secretary 
        of Agriculture.
            ``(5) Task force.--The term `task force' means the Strategic 
        Planning Task Force established under section 4.

``SEC. 3. <<NOTE: 7 USC 390a.>>  REVIEW PROCESS.

    ``(a) Submission to Secretary.--Each proposal for an agricultural 
research facility shall be submitted to the Secretary for review. The 
Secretary shall review the proposals in the order in which the proposals 
are received.
    ``(b) Application Process.--In consultation with the congressional 
agriculture committees, the Secretary shall establish an application 
process for the submission of proposals for agricultural research 
facilities.
    ``(c) Criteria for Approval.--
            ``(1) Determination by secretary.--With respect to each 
        proposal for an agricultural research facility submitted under 
        subsection (a), the Secretary shall determine whether the 
        proposal meets the criteria set forth in paragraph (2).
            ``(2) Criteria.--A proposal for an agricultural research 
        facility shall meet the following criteria:
                    ``(A) Non-federal share.--The proposal shall certify 
                the availability of at least a 50 percent non-Federal 
                share of the cost of the facility. The non-Federal share 
                shall be paid in cash and may include funding from 
                private sources or from units of State or local 
                government.
                    ``(B) Nonduplication of facilities.--The proposal 
                shall demonstrate how the agricultural research facility 
                would be complementary to, and not duplicative of, 
                facilities of colleges, universities, and nonprofit 
                institutions, and facilities of the Agricultural 
                Research Service, within the State and region.
                    ``(C) National research priorities.--The proposal 
                shall demonstrate how the agricultural research facility 
                would serve--

[[Page 110 STAT. 1178]]

                          ``(i) 1 or more of the national research 
                      policies and priorities set forth in section 1402 
                      of the National Agricultural Research, Extension, 
                      and Teaching Policy Act of 1977 (7 U.S.C. 3101); 
                      and
                          ``(ii) regional needs.
                    ``(D) Long-term support.--The proposal shall 
                demonstrate that the recipient college, university, or 
                nonprofit institution has the ability and commitment to 
                support the long-term, ongoing operating costs of--
                          ``(i) the agricultural research facility after 
                      the facility is completed; and
                          ``(ii) each program to be based at the 
                      facility.

    ``(d) Evaluation of Proposals.--Not later than 90 days after 
receiving a proposal under subsection (a), the Secretary shall--
            ``(1) evaluate and assess the merits of the proposal, 
        including the extent to which the proposal meets the criteria 
        set forth in subsection (c); and
            ``(2) <<NOTE: Reports.>>  report to the congressional 
        agriculture committees on the results of the evaluation and 
        assessment.

``SEC. 4. <<NOTE: 7 USC 390b.>>  TASK FORCE ON 10-YEAR STRATEGIC PLAN 
            FOR AGRICULTURAL RESEARCH FACILITIES.

    ``(a) Establishment.--Not later than 6 months after the date of 
enactment of the Federal Agriculture Improvement and Reform Act of 1996, 
the Secretary shall establish a task force, to be known as the 
`Strategic Planning Task Force'. The task force shall be comprised of 15 
members.
    ``(b) Composition.--The Secretary shall select the members of the 
task force from a list of individuals recommended by the Advisory Board 
established under section 1408 of the National Agricultural Research, 
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3123). In 
submitting the list to the Secretary, the Board may recommend for 
selection individuals (including members of the Advisory Board) who have 
expertise in facilities development, modernization, construction, 
consolidation, and closure.
    ``(c) Duties.--The task force shall review all currently operating 
agricultural research facilities constructed in whole or in part with 
Federal funds, and all planned agricultural research facilities proposed 
to be constructed with Federal funds, pursuant to criteria established 
by the Secretary, to ensure that a comprehensive research capacity is 
maintained.
    ``(d) 10-Year Strategic Plan.--Not later than 2 years after the task 
force is established, the task force shall prepare and submit to the 
Secretary and the congressional agriculture committees a 10-year 
strategic plan, reflecting both national and regional perspectives, for 
development, modernization, construction, consolidation, and closure of 
Federal agricultural research facilities and agricultural research 
facilities proposed to be constructed with Federal funds.
    ``(e) Applicability of Federal Advisory Committee Act.--
            ``(1) Public meetings.--All meetings of the task force shall 
        be publicly announced in advance and shall be open to the 
        public. <<NOTE: Records.>>  Detailed minutes of meetings and 
        other appropriate records of the activities of the task force 
        shall be kept and made available to the public on request.
            ``(2) Exemption.--The Federal Advisory Committee Act (5 
        U.S.C. App.) and title XVIII of the Food and Agriculture Act

[[Page 110 STAT. 1179]]

        of 1977 (7 U.S.C. 2281 et seq.) shall not apply to the task 
        force.

    ``(f) Definition of Agricultural Research Facility.--Notwithstanding 
section 2(1), in this section the term `agricultural research facility' 
means a facility for research in food and agricultural sciences.

``SEC. 5. <<NOTE: 7 USC 390c.>>  APPLICABILITY OF FEDERAL ADVISORY 
            COMMITTEE ACT.

    ``The Federal Advisory Committee Act (5 U.S.C. App.) and title XVIII 
of the Food and Agriculture Act of 1977 (7 U.S.C. 2281 et seq.) shall 
not apply to a panel or board created solely for the purpose of 
reviewing applications or proposals submitted under this Act.

``SEC. 6. <<NOTE: 7 USC 390d.>>  AUTHORIZATION OF APPROPRIATIONS.

    ``(a) In General.--Subject to subsection (b), there are authorized 
to be appropriated such sums as are necessary for fiscal years 1996 and 
1997 for the study, plan, design, structure, and related costs of 
agricultural research facilities under this Act.
    ``(b) Allowable Administrative Costs.--Not more than 3 percent of 
the funds made available for any project for an agricultural research 
facility shall be available for administration of the project.''.
    (b) <<NOTE: 7 USC 390 note.>>  Application of Amendment.--The 
amendment made by subsection (a), other than section 4 of the Research 
Facilities Act (as amended by subsection (a)), shall not apply to any 
project for an agricultural research facility for which funds have been 
made available for a feasibility study or for any phase of the project 
prior to October 1, 1995.

    (c) Authorization of Appropriations for Federal Facilities.--Section 
1431 of the National Agricultural Research, Extension, and Teaching 
Policy Act Amendments of 1985 (Public Law 99-198; 99 Stat. 1556) is 
amended--
            (1) in subsection (a)--
                    (A) by striking ``(a)''; and
                    (B) by striking ``1995'' and inserting ``1997''; and
            (2) by striking subsection (b).

    (d) Conforming Amendment.--Section 1463(a) of the National 
Agricultural Research, Extension, and Teaching Policy Act of 1977 (7 
U.S.C. 3311(a)) is amended by striking ``1416,''.

SEC. 885. NATIONAL COMPETITIVE RESEARCH INITIATIVE.

    (a) Authorization of Appropriations for Competitive Grants.--
Subsection (b)(10) of the Competitive, Special, and Facilities Research 
Grant Act (7 U.S.C. 450i(b)(10)) is amended--
            (1) by striking ``fiscal year 1995'' and inserting ``each of 
        fiscal years 1995 through 1997''; and
            (2) in subparagraph (B), by striking ``20 percent'' and 
        inserting ``40 percent''.

    (b) Availability of Funds.--Subsection (b) of the Competitive, 
Special, and Facilities Research Grant Act (7 U.S.C. 450i(b)) is amended 
by adding at the end the following:
    ``(11) Availability of Funds.--Funds made available under paragraph 
(10) shall be available for obligation for a 2-year period beginning on 
October 1 of the fiscal year for which the funds are made available.''.

[[Page 110 STAT. 1180]]

SEC. 886. RURAL DEVELOPMENT RESEARCH AND EDUCATION.

    Section 502(a) of the Rural Development Act of 1972 (7 U.S.C. 
2662(a)) is amended by inserting after the first sentence the following: 
``The rural development extension programs shall also promote 
coordinated and integrated rural community initiatives that advance and 
empower capacity building through leadership development, 
entrepreneurship, business development and management training, and 
strategic planning to increase jobs, income, and quality of life in 
rural communities.''.

SEC. 887. DAIRY GOAT RESEARCH PROGRAM.

    Section 1432(b)(5) of the National Agricultural Research, Extension, 
and Teaching Policy Act Amendments of 1981 (Public Law 97-98; 7 U.S.C. 
3222 note) is amended by striking ``1995'' and inserting ``1997''.

SEC. 888. COMPETITIVE GRANTS FOR RESEARCH TO ERADICATE AND CONTROL BROWN 
            CITRUS APHID AND CITRUS TRISTEZA VIRUS.

    Section 1672 of the Food, Agriculture, Conservation, and Trade Act 
of 1990 (7 U.S.C. 5925) (as amended by section 863) is amended by 
inserting before subsection (b) the following:
    ``(a) Brown Citrus Aphid and Citrus Tristeza Virus.--
            ``(1) Research grants authorized.--The Secretary of 
        Agriculture may make competitive grants available to support 
        research for the purpose of--
                    ``(A) developing methods to eradicate the brown 
                citrus aphid and the citrus tristeza virus from citrus 
                crops grown in the United States; or
                    ``(B) adapting citrus crops grown in the United 
                States to the brown citrus aphid and the citrus tristeza 
                virus.
            ``(2) Method of providing grants.--Grants authorized under 
        this subsection shall be made in the same manner, and shall be 
        subject to the same conditions, as provided for competitive 
        grants under the Competitive, Special, and Facilities Research 
        Grant Act (7 U.S.C. 450i).
            ``(3) Authorization of appropriations.--There are authorized 
        to be appropriated to carry out this subsection $3,000,000 for 
        fiscal year 1997.''.

SEC. 889. <<NOTE: Arkansas.>>  STUTTGART NATIONAL AQUACULTURE RESEARCH 
            CENTER.

    (a) Transfer of Functions to Secretary of Agriculture.--
            (1) Purpose.--The first section of Public Law 85-342 (16 
        U.S.C. 778) is amended--
                    (A) by striking ``Secretary of the Interior'' and 
                all that follows through ``directed to'' and inserting 
                ``Secretary of Agriculture shall'';
                    (B) by striking ``an experiment station or 
                stations'' and inserting ``1 or more centers''; and
                    (C) in paragraph (5), by striking ``Department of 
                Agriculture'' and inserting ``Secretary of the 
                Interior''.
            (2) Authority.--Section 2 of Public Law 85-342 (16 U.S.C. 
        778a) is amended by striking ``, the Secretary'' and all that 
        follows through ``authorized'' and inserting ``, the Secretary 
        of Agriculture is authorized''.
            (3) Assistance.--Section 3 of Public Law 85-342 (16 U.S.C. 
        778b) is amended--

[[Page 110 STAT. 1181]]

                    (A) by striking ``Secretary of the Interior'' and 
                inserting ``Secretary of Agriculture''; and
                    (B) by striking ``Department of Agriculture'' and 
                inserting ``Secretary of the Interior''.

    (b) Transfer of Fish Farming Experimental Laboratory to Department 
of Agriculture.--
            (1) Designation of stuttgart national aquaculture research 
        center.--
                    (A) In general.--The Fish Farming Experimental 
                Laboratory in Stuttgart, Arkansas (including the 
                facilities in Kelso, Arkansas), shall be known and 
                designated as the ``Stuttgart National Aquaculture 
                Research Center''.
                    (B) References.--Any reference in a law, map, 
                regulation, document, paper, or other record of the 
                United States to the laboratory referred to in 
                subparagraph (A) shall be deemed to be a reference to 
                the ``Stuttgart National Aquaculture Research Center''.
            (2) Transfer of laboratory to department of agriculture.--
        Subject to section 1531 of title 31, United States Code, not 
        later than 90 days after the date of enactment of this Act, 
        there are transferred to the Department of Agriculture--
                    (A) the personnel employed in connection with the 
                laboratory referred to in paragraph (1)(A);
                    (B) the assets, liabilities, contracts, and real and 
                personal property of the laboratory;
                    (C) the records of the laboratory; and
                    (D) the unexpended balance of appropriations, 
                authorizations, allocations, and other funds employed in 
                connection with, held in connection with, arising from, 
                available to, or to be made available in connection with 
                the laboratory.
            (3) Nonduplication of facilities.--The research center 
        referred to in paragraph (1)(A) shall be complementary to, and 
        not duplicative of, facilities of colleges, universities, and 
        nonprofit institutions, and facilities of the Agricultural 
        Research Service, within the State and region, as determined by 
        the Administrator of the Service.

SEC. 890. EXPANSION OF AUTHORITIES RELATED TO NATIONAL ARBORETUM.

    (a) Solicitation of Gifts, Benefits, and Devises.--The first 
sentence of section 5 of the Act of March 4, 1927 (20 U.S.C. 195), is 
amended by inserting ``solicit,'' after ``authorized to''.
    (b) Concessions, Fees, and Voluntary Services.--The Act of March 4, 
1927 (20 U.S.C. 191 et seq.), is amended by adding at the end the 
following:

``SEC. 6. <<NOTE: 20 USC 196.>>  CONCESSIONS, FEES, AND VOLUNTARY 
            SERVICES.

    ``(a) In General.--Notwithstanding the Federal Property and 
Administrative Services Act of 1949 (40 U.S.C. 471 et seq.) and section 
321 of the Act of June 30, 1932 (40 U.S.C. 303b), the Secretary of 
Agriculture, in furtherance of the mission of the National Arboretum, 
may--
            ``(1) negotiate agreements granting concessions at the 
        National Arboretum to nonprofit scientific or educational 
        organizations the interests of which are complementary to the 
        mission of the National Arboretum, except that the net proceeds

[[Page 110 STAT. 1182]]

        of the organizations from the concessions shall be used 
        exclusively for research and educational work for the benefit of 
        the National Arboretum;
            ``(2) provide by concession, on such terms as the Secretary 
        of Agriculture considers appropriate and necessary, for 
        commercial services for food, drink, and nursery sales, if an 
        agreement for a permanent concession under this paragraph is 
        negotiated with a qualified person submitting a proposal after 
        due consideration of all proposals received after the Secretary 
        of Agriculture provides reasonable public notice of the intent 
        of the Secretary to enter into such an agreement;
            ``(3) dispose of excess property, including excess plants 
        and fish, in a manner designed to maximize revenue from any sale 
        of the property, including by way of public auction, except that 
        this paragraph shall not apply to the free dissemination of new 
        varieties of seeds and germ plasm in accordance with section 520 
        of the Revised Statutes (commonly known as the `Department of 
        Agriculture Organic Act of 1862') (7 U.S.C. 2201);
            ``(4) charge such fees as the Secretary of Agriculture 
        considers reasonable for temporary use by individuals or groups 
        of National Arboretum facilities and grounds for any purpose 
        consistent with the mission of the National Arboretum;
            ``(5) charge such fees as the Secretary of Agriculture 
        considers reasonable for the use of the National Arboretum for 
        commercial photography or cinematography;
            ``(6) publish, in print and electronically and without 
        regard to laws relating to printing by the Federal Government, 
        informational brochures, books, and other publications 
        concerning the National Arboretum or the collections of the 
        Arboretum; and
            ``(7) license use of the National Arboretum name and logo 
        for public service or commercial uses.

    ``(b) Use of Funds.--Any funds received or collected by the 
Secretary of Agriculture as a result of activities described in 
subsection (a) shall be retained in a special fund in the Treasury for 
the use and benefit of the National Arboretum as the Secretary of 
Agriculture considers appropriate.
    ``(c) Acceptance of Voluntary Services.--The Secretary of 
Agriculture may accept the voluntary services of organizations described 
in subsection (a)(1), and the voluntary services of individuals 
(including employees of the National Arboretum), for the benefit of the 
National Arboretum.''.

SEC. 891. <<NOTE: Alabama.>>  TRANSFER OF AQUACULTURAL RESEARCH CENTER.

    (a) Transfer of Fish Culture Laboratory to Department of 
Agriculture.--
            (1) Designation of claude harris national aquacultural 
        research center.--
                    (A) In general.--The Southeastern Fish Culture 
                Laboratory in Marion, Alabama, shall be known and 
                designated as the ``Claude Harris National Aquacultural 
                Research Center''.
                    (B) References.--Any reference in a law, map, 
                regulation, document, paper, or other record of the 
                United States to the laboratory referred to in 
                subparagraph (A) shall

[[Page 110 STAT. 1183]]

                be deemed to be a reference to the ``Claude Harris 
                National Aquacultural Research Center''.
            (2) Transfer of laboratory to department of agriculture.--
        Subject to section 1531 of title 31, United States Code, not 
        later than 90 days after the date of enactment of this Act, the 
        Secretary of the Interior may transfer, in whole or in part, to 
        the Department of Agriculture, with the consent of the Secretary 
        of Agriculture--
                    (A) the personnel employed in connection with the 
                laboratory referred to in paragraph (1);
                    (B) the assets, liabilities, contracts, and real and 
                personal property of the laboratory;
                    (C) the records of the laboratory; and
                    (D) the unexpended balance of appropriations, 
                authorizations, allocations, and other funds employed in 
                connection with, held in connection with, arising from, 
                available to, or to be made available in connection with 
                the laboratory.

    (b) Nonduplication of Facilities.--The research center designated by 
subsection (a) shall be complementary to, and not duplicative of, 
facilities of colleges, universities, and nonprofit institutions, and 
facilities of the Agricultural Research Service, within the State and 
region, as determined by the Secretary of Agriculture.

SEC. 892. <<NOTE: 7 USC 5935.>>  USE OF REMOTE SENSING DATA AND OTHER 
            DATA TO ANTICIPATE POTENTIAL FOOD, FEED, AND FIBER SHORTAGES 
            OR EXCESSES AND TO PROVIDE TIMELY INFORMATION TO ASSIST 
            FARMERS WITH PLANTING DECISIONS.

    (a) Findings.--Congress finds that--
            (1) remote sensing data can be useful to predict impending 
        famine problems and forest infestations in time to allow 
        remedial action;
            (2) remote sensing data can inform the agricultural 
        community as to the condition of crops and the land that 
        sustains those crops; and
            (3) remote sensing data and other data can be valuable, when 
        received on a timely basis, in determining the need for 
        additional plantings of a particular crop or a substitute crop.

    (b) Information Development.--The Secretary of Agriculture and the 
Administrator of the National Aeronautics and Space Administration, 
maximizing private funding and involvement, shall provide farmers and 
other interested persons with timely information, through remote 
sensing, on crop conditions, fertilization and irrigation needs, pest 
infiltration, soil conditions, projected food, feed, and fiber 
production, and any other information available through remote sensing.
    (c) Coordination.--The Secretary of Agriculture and the 
Administrator of the National Aeronautics and Space Administration shall 
jointly develop a proposal to provide farmers and other prospective 
users with supply and demand information for food and fibers.
    (d) Sunset.--The authorities provided by this section shall expire 5 
years after the date of enactment of this Act.

SEC. 893. SENSE OF SENATE REGARDING METHYL BROMIDE ALTERNATIVE RESEARCH 
            AND EXTENSION ACTIVITIES.

    It is the sense of the Senate that--

[[Page 110 STAT. 1184]]

            (1) the Department of Agriculture should continue to make 
        methyl bromide alternative research and extension activities a 
        high priority of the Department; and
            (2) the Department of Agriculture, the Environmental 
        Protection Agency, producer and processor organizations, 
        environmental organizations, and State agencies should continue 
        their dialogue on the risks and benefits of extending the 2001 
        phaseout deadline.

          Subtitle E--Research Authority After Fiscal Year 1997

SEC. 897. AUTHORIZATION OF APPROPRIATIONS.

    Subject to section 898, there are authorized to be appropriated for 
fiscal years 1998 through 2002 such sums as are necessary to carry out 
the agricultural research, extension, and education activities and 
initiatives of the Department of Agriculture.

SEC. 898. ACTIVITIES SUBJECT TO AVAILABILITY OF APPROPRIATIONS.

    During each of fiscal years 1998 through 2002, the Secretary of 
Agriculture shall conduct only those agricultural research, extension, 
and education activities and initiatives of the Department of 
Agriculture for which funds are specifically provided for the fiscal 
year in an appropriation Act.

                         TITLE IX--MISCELLANEOUS

  Subtitle A <<NOTE: 7 USC 1901 note.>> --Commercial Transportation of 
Equine for Slaughter

SEC. 901. FINDINGS.

    Because of the unique and special needs of equine being transported 
to slaughter, Congress finds that it is appropriate for the Secretary of 
Agriculture to issue guidelines for the regulation of the commercial 
transportation of equine for slaughter by persons regularly engaged in 
that activity within the United States.

SEC. 902. DEFINITIONS.

    In this subtitle:
            (1) Commercial transportation.--The term ``commercial 
        transportation'' means the regular operation for profit of a 
        transport business that uses trucks, tractors, trailers, or 
        semitrailers, or any combination thereof, propelled or drawn by 
        mechanical power on any highway or public road.
            (2) Equine for slaughter.--The term ``equine for slaughter'' 
        means any member of the Equidae family being transferred to a 
        slaughter facility, including an assembly point, feedlot, or 
        stockyard.
            (3) Person.--The term ``person''--
                    (A) means any individual, partnership, corporation, 
                or cooperative association that regularly engages in the 
                commercial transportation of equine for slaughter; but
                    (B) does not include any individual or other entity 
                referred to in subparagraph (A) that occasionally 
                transports

[[Page 110 STAT. 1185]]

                equine for slaughter incidental to the principal 
                activity of the individual or other entity in production 
                agriculture.

SEC. 903. REGULATION OF COMMERCIAL TRANSPORTATION OF EQUINE FOR 
            SLAUGHTER.

    (a) In General.--Subject to the availability of appropriations, the 
Secretary of Agriculture may issue guidelines for the regulation of the 
commercial transportation of equine for slaughter by persons regularly 
engaged in that activity within the United States.
    (b) Issues for Review.--In carrying out this section, the Secretary 
of Agriculture shall review the food, water, and rest provided to equine 
for slaughter in transit, the segregation of stallions from other equine 
during transit, and such other issues as the Secretary considers 
appropriate.
    (c) Additional Authority.--In carrying out this section, the 
Secretary of Agriculture may--
            (1) require any person to maintain such records and reports 
        as the Secretary considers necessary;
            (2) conduct such investigations and inspections as the 
        Secretary considers necessary; and
            (3) establish and enforce appropriate and effective civil 
        penalties.

SEC. 904. LIMITATION OF AUTHORITY TO EQUINE FOR SLAUGHTER.

    Nothing in this subtitle authorizes the Secretary of Agriculture to 
regulate the routine or regular transportation, to slaughter or 
elsewhere, of--
            (1) livestock other than equine; or
            (2) poultry.

SEC. 905. EFFECTIVE DATE.

    This subtitle shall become effective on the first day of the first 
month that begins 30 days or more after the date of enactment of this 
Act.

                     Subtitle B--General Provisions

SEC. 911. INTERSTATE QUARANTINE.

    The fourth sentence of section 8 of the Act of August 20, 1912 (7 
U.S.C. 161), is amended by inserting after ``Provided, That'' the 
following: ``if the Secretary of Agriculture determines under this 
section that it is necessary to quarantine a State entirely comprised of 
islands, the Secretary of Agriculture, in implementing the restrictions 
authorized under this section, shall give consideration to enhancing 
passenger movement and commerce on and between islands in the State: 
Provided further, That''.

SEC. 912. COTTON CLASSIFICATION SERVICES.

    (a) Extension of Authorization.--The first sentence of section 3a of 
the Act of March 3, 1927 (commonly known as the ``Cotton Statistics and 
Estimates Act'') (7 U.S.C. 473a), is amended by striking ``1996'' and 
inserting ``2002''.
    (b) <<NOTE: Missouri.>>  Cotton Classing Office Locations.--Section 
4 of the Act of March 3, 1927 (commonly known as the ``Cotton Statistics 
and Estimates Act'') (7 U.S.C. 474), is amended by adding at the end the 
following: ``The Secretary of Agriculture shall maintain

[[Page 110 STAT. 1186]]

until at least January 1, 1999, all cotton classing office locations in 
the State of Missouri that existed on January 1, 1996.''.

SEC. 913. PLANT VARIETY PROTECTION FOR CERTAIN TUBER PROPAGATED PLANT 
            VARIETIES.

    (a) In General.--Section 42(a)(1)(B)(i) of the Plant Variety 
Protection Act (7 U.S.C. 2402(a)(1)(B)(i)) is amended by inserting after 
``filing'' the following: ``, except that in the case of a tuber 
propagated plant variety the Secretary may waive the 4-year limitation 
for a period ending 1 year after the date of enactment of the Federal 
Agriculture Improvement and Reform Act of 1996''.
    (b) Term of Protection.--Section 83(b) of the Plant Variety 
Protection Act (7 U.S.C. 2483(b)) is amended--
            (1) by striking ``(b) The term'' and inserting the 
        following:

    ``(b) Term.--
            ``(1) In general.--Except as provided in paragraph (2), the 
        term'';
            (2) in the second sentence, by striking ``If the 
        certificate'' and inserting the following:
            ``(2) Exceptions.--If the certificate''; and
            (3) in paragraph (2) (as so designated), by striking 
        ``except that, in the case'' and inserting the following: 
        ``except that--
                    ``(A) in the case of a tuber propagated plant 
                variety subject to a waiver granted under section 
                42(a)(1)(B)(i), the term of the plant variety protection 
                shall expire 20 years after the date of the original 
                grant of the plant breeder's rights to the variety 
                outside the United States; and
                    ``(B) in the case''.

SEC. 914. SWINE HEALTH PROTECTION.

    (a) Termination of State Primary Enforcement Responsibility.--
Section 10 of the Swine Health Protection Act (7 U.S.C. 3809) is 
amended--
            (1) by redesignating subsection (c) as subsection (d); and
            (2) by inserting after subsection (b) the following:

    ``(c) Request of State Official.--
            ``(1) In general.--On request of the Governor or other 
        appropriate official of a State, the Secretary may terminate, 
        effective as soon as the Secretary determines is practicable, 
        the primary enforcement responsibility of a State under 
        subsection (a). In terminating the primary enforcement 
        responsibility under this subsection, the Secretary shall work 
        with the appropriate State official to determine the level of 
        support to be provided to the Secretary by the State under this 
        Act.
            ``(2) Reassumption.--Nothing in this subsection shall 
        prevent a State from reassuming primary enforcement 
        responsibility if the Secretary determines that the State meets 
        the requirements of subsection (a).''.

    (b) Advisory Committee.--The Swine Health Protection Act is 
amended--
            (1) by striking section 11 (7 U.S.C. 3810); and
            (2) by redesignating sections 12, 13, and 14 (7 U.S.C. 3811, 
        3812, and 3813) as sections 11, 12, and 13, respectively.

[[Page 110 STAT. 1187]]

SEC. 915. DESIGNATION OF MOUNT PLEASANT NATIONAL SCENIC AREA.

    Sections 1, 2, and 3(a)(1) of the George Washington National Forest 
Mount Pleasant Scenic Area Act (Public Law 103-314; 16 U.S.C. 545 note) 
are each amended by striking ``George Washington National Forest Mount 
Pleasant Scenic Area'' and inserting ``Mount Pleasant National Scenic 
Area''.

SEC. 916. PSEUDORABIES ERADICATION PROGRAM.

    Section 2506(d) of the Food, Agriculture, Conservation, and Trade 
Act of 1990 (21 U.S.C. 114i(d)) is amended by striking ``1995'' and 
inserting ``2002''.

SEC. 917. COLLECTION AND USE OF AGRICULTURAL QUARANTINE AND INSPECTION 
            FEES.

    Section 2509 of the Food, Agriculture, Conservation, and Trade Act 
of 1990 (21 U.S.C. 136a) is amended by striking subsection (a) and 
inserting the following:
    ``(a) Quarantine and Inspection Fees.--
            ``(1) Fees authorized.--The Secretary of Agriculture may 
        prescribe and collect fees sufficient--
                    ``(A) to cover the cost of providing agricultural 
                quarantine and inspection services in connection with 
                the arrival at a port in the customs territory of the 
                United States, or the preclearance or preinspection at a 
                site outside the customs territory of the United States, 
                of an international passenger, commercial vessel, 
                commercial aircraft, commercial truck, or railroad car;
                    ``(B) to cover the cost of administering this 
                subsection; and
                    ``(C) through fiscal year 2002, to maintain a 
                reasonable balance in the Agricultural Quarantine 
                Inspection User Fee Account established under paragraph 
                (5).
            ``(2) Limitation.--In setting the fees under paragraph (1), 
        the Secretary shall ensure that the amount of the fees is 
        commensurate with the costs of agricultural quarantine and 
        inspection services with respect to the class of persons or 
        entities paying the fees. The costs of the services with respect 
        to passengers as a class includes the costs of related 
        inspections of the aircraft or other vehicle.
            ``(3) Status of fees.--Fees collected under this subsection 
        by any person on behalf of the Secretary are held in trust for 
        the United States and shall be remitted to the Secretary in such 
        manner and at such times as the Secretary may prescribe.
            ``(4) Late payment penalties.--If a person subject to a fee 
        under this subsection fails to pay the fee when due, the 
        Secretary shall assess a late payment penalty, and the overdue 
        fees shall accrue interest, as required by section 3717 of title 
        31, United States Code.
            ``(5) Agricultural quarantine inspection user fee account.--
                    ``(A) Establishment.--There is established in the 
                Treasury of the United States a fund, to be known as the 
                `Agricultural Quarantine Inspection User Fee Account', 
                which shall contain all of the fees collected under this

[[Page 110 STAT. 1188]]

                subsection and late payment penalties and interest 
                charges collected under paragraph (4) through fiscal 
                year 2002.
                    ``(B) Use of account.--For each of fiscal years 1996 
                through 2002, funds in the Agricultural Quarantine 
                Inspection User Fee Account shall be available, in such 
                amounts as are provided in advance in appropriations 
                Acts, to cover the costs associated with the provision 
                of agricultural quarantine and inspection services and 
                the administration of this subsection. Amounts made 
                available under this subparagraph shall be available 
                until expended.
                    ``(C) Excess fees.--Fees and other amounts collected 
                under this subsection in any of fiscal years 1996 
                through 2002 in excess of $100,000,000 shall be 
                available for the purposes specified in subparagraph (B) 
                until expended, without further appropriation.
            ``(6) Use of amounts collected after fiscal year 2002.--
        After September 30, 2002, the unobligated balance in the 
        Agricultural Quarantine Inspection User Fee Account and fees and 
        other amounts collected under this subsection shall be credited 
        to the Department of Agriculture accounts that incur the costs 
        associated with the provision of agricultural quarantine and 
        inspection services and the administration of this subsection. 
        The fees and other amounts shall remain available to the 
        Secretary until expended without fiscal year limitation.
            ``(7) Staff years.--The number of full-time equivalent 
        positions in the Department of Agriculture attributable to the 
        provision of agricultural quarantine and inspection services and 
        the administration of this subsection shall not be counted 
        toward the limitation on the total number of full-time 
        equivalent positions in all agencies specified in section 5(b) 
        of the Federal Workforce Restructuring Act of 1994 (Public Law 
        103-226; 5 U.S.C. 3101 note) or other limitation on the total 
        number of full-time equivalent positions.''.

SEC. 918. MEAT AND POULTRY INSPECTION.

    (a) Establishment of Safe Meat and Poultry Inspection Panel.--
            (1) In general.--The Federal Meat Inspection Act is 
        amended--
                    (A) by redesignating section 410 (21 U.S.C. 680) as 
                section 411; and
                    (B) by inserting after section 409 (21 U.S.C. 679) 
                the following:

``SEC. 410. <<NOTE: 21 USC 679a.>>  SAFE MEAT AND POULTRY INSPECTION 
            PANEL.

    ``(a) Establishment.--There is established in the Department of 
Agriculture a permanent advisory panel to be known as the `Safe Meat and 
Poultry Inspection Panel' (referred to in this section as the `panel').
    ``(b) Duties.--
            ``(1) Review and evaluation.--The panel shall review and 
        evaluate, as the panel considers necessary, the adequacy, 
        necessity, safety, cost-effectiveness, and scientific merit of--
                    ``(A) inspection procedures of, and work rules and 
                worker relations involving Federal employees employed 
                in, plants inspected under this Act;

[[Page 110 STAT. 1189]]

                    ``(B) informal petitions or proposals for changes in 
                inspection procedures, processes, and techniques of 
                plants inspected under this Act;
                    ``(C) formal changes in meat inspection regulations 
                promulgated under this Act, whether in notice, proposed, 
                or final form; and
                    ``(D) such other matters as may be referred to the 
                panel by the Secretary regarding the quality or 
                effectiveness of a safe and cost-effective meat 
                inspection system under this Act.
            ``(2) Reports.--
                    ``(A) In general.--The panel shall submit to the 
                Secretary a report on the results of each review and 
                evaluation carried out under paragraph (1), including 
                such recommendations as the panel considers appropriate.
                    ``(B) Reports on formal changes.--In the case of a 
                report concerning a formal change in meat inspection 
                regulations, the report shall be made within the time 
                limits prescribed for formal comments on such changes.
                    ``(C) Publication in federal register.--Each report 
                of the panel to the Secretary shall be published in the 
                Federal Register.

    ``(c) <<NOTE: Federal Register, publication.>>  Secretarial 
Response.--Not later than 90 days after the publication of a panel 
report under subsection (b)(2)(C), the Secretary shall publish in the 
Federal Register any response required of the Secretary to the report.

    ``(d) Composition of Panel.--The panel shall be composed of 7 
members, not fewer than 5 of whom shall be from the food science, meat 
science, or poultry science profession, appointed to staggered terms not 
to exceed 3 years by the Secretary from nominations received from the 
National Institutes of Health and the Federation of American Societies 
of Food Animal Science and based on the professional qualifications of 
the nominees.
    ``(e) Nominations.--
            ``(1) Initial panel.--In constituting the initial panel, the 
        Secretary shall solicit 6 nominees from the National Institutes 
        of Health and 6 nominees from the Federation of American 
        Societies of Food Animal Science for membership on the panel.
            ``(2) Vacancies.--Any subsequent vacancy on the panel shall 
        be filled by the Secretary after soliciting 2 nominees from the 
        National Institutes of Health and 2 nominees from the Federation 
        of American Societies of Food Animal Science.
            ``(3) Requirements for nominees.--
                    ``(A) In general.--Each nominee provided under 
                paragraph (1) or (2) shall have a background in public 
                health issues and a scientific expertise in food, meat, 
                or poultry science or in veterinary science.
                    ``(B) Submission of information.--The Secretary may 
                require nominees to submit such information as the 
                Secretary considers necessary prior to completing the 
                selection process.
            ``(4) Additional nominees.--If any list of nominees provided 
        under paragraph (1) or (2) is unsatisfactory to the Secretary, 
        the Secretary may request the nominating entities to submit an 
        additional list of nominees.

    ``(f) Travel Expenses.--While away from the home or regular place of 
business of a member of the panel in the performance

[[Page 110 STAT. 1190]]

of services for the panel, the member shall be allowed travel expenses, 
including per diem in lieu of subsistence, at the same rate as a person 
employed intermittently in the Government service would be allowed under 
section 5703 of title 5, United States Code.
    ``(g) <<NOTE: Regulations.>>  Conflicts of Interest.--The Secretary 
shall promulgate regulations regarding conflicts of interest with 
respect to the members of the panel.

    ``(h) Exemption.--The Federal Advisory Committee Act (5 U.S.C. App.) 
and title XVIII of the Food and Agriculture Act of 1977 (7 U.S.C. 2281 
et seq.) shall not apply to the panel.
    ``(i) Funding.--From funds available to the Secretary to carry out 
this Act and the Poultry Products Inspection Act (21 U.S.C. 451 et 
seq.), the Secretary shall allocate such sums as may be necessary to 
carry out this section.''.
            (2) Cross reference in poultry products inspection act.--The 
        Poultry Products Inspection Act (21 U.S.C. 451 et seq.) is 
        amended by adding at the end the following:

``SEC. 30. <<NOTE: 21 USC 471.>>  SAFE MEAT AND POULTRY INSPECTION 
            PANEL.

    ``(a) Review and Evaluation.--The advisory panel known as the `Safe 
Meat and Poultry Inspection Panel' established by section 410 of the 
Federal Meat Inspection Act shall review and evaluate, as the panel 
considers necessary, the adequacy, necessity, safety, cost-
effectiveness, and scientific merit of--
            ``(1) inspection procedures of, and work rules and worker 
        relations involving Federal employees employed in, plants 
        inspected under this Act;
            ``(2) informal petitions or proposals for changes in 
        inspection procedures, processes, and techniques of plants 
        inspected under this Act;
            ``(3) formal changes in poultry inspection regulations 
        promulgated under this Act, whether in notice, proposed, or 
        final form; and
            ``(4) such other matters as may be referred to the panel by 
        the Secretary regarding the quality or effectiveness of a safe 
        and cost-effective poultry inspection system under this Act.

    ``(b) Reports.--
            ``(1) In general.--The Safe Meat and Poultry Inspection 
        Panel shall submit to the Secretary a report on the results of 
        each review and evaluation carried out under paragraph (1), 
        including such recommendations as the panel considers 
        appropriate.
            ``(2) Reports on formal changes.--In the case of a report 
        concerning a formal change in poultry inspection regulations, 
        the report shall be made within the time limits prescribed for 
        formal comments on such changes.''.

    (b) Interstate Shipment of State-Inspected Meat and Poultry.--Not 
later than 90 days after the date of enactment of this Act, the 
Secretary of Agriculture shall submit to Congress recommendations 
concerning the steps necessary to achieve interstate shipment of--
            (1) meat inspected under a State meat inspection program 
        developed and administered under section 301 of the Federal Meat 
        Inspection Act (21 U.S.C. 661); and

[[Page 110 STAT. 1191]]

            (2) poultry inspected under a State poultry product 
        inspection program developed and administered under section 5 of 
        the Poultry Products Inspection Act (21 U.S.C. 454).

SEC. 919. <<NOTE: 7 USC 2260a.>>  REIMBURSABLE AGREEMENTS.

    (a) In General.--The Secretary of Agriculture (referred to in this 
section as the ``Secretary'') may enter into reimbursable fee agreements 
with persons for preclearance at locations outside the United States of 
plants, plant products, animals, and articles for movement into the 
United States.
    (b) Overtime, Night, and Holiday Work.--Notwithstanding any other 
provision of law, the Secretary may pay an employee of the Department of 
Agriculture performing services relating to imports into and exports 
from the United States for overtime, night, and holiday work performed 
by the employee at a rate of pay established by the Secretary.
    (c) Reimbursement.--
            (1) In general.--The Secretary may require persons for whom 
        preclearance services are performed to reimburse the Secretary 
        for any amounts paid by the Secretary for performance of the 
        services.
            (2) Crediting of funds.--All funds collected under paragraph 
        (1) shall be credited to the account that incurs the costs and 
        shall remain available until expended without fiscal year 
        limitation.
            (3) Late payment penalty.--
                    (A) In general.--On failure of a person to reimburse 
                the Secretary for the costs of performance of 
                preclearance services--
                          (i) the Secretary may assess a late payment 
                      penalty; and
                          (ii) the overdue funds shall accrue interest 
                      in accordance with section 3717 of title 31, 
                      United States Code.
                    (B) Crediting of funds.--Any late payment penalty 
                and any accrued interest collected under this paragraph 
                shall be credited to the account that incurs the costs 
                and shall remain available until expended without fiscal 
                year limitation.

SEC. 920. <<NOTE: 7 USC 2262a.>>  OVERSEAS TORT CLAIMS.

    (a) In General.--The Secretary of Agriculture may pay a tort claim 
in the manner authorized by section 2672 of title 28, United States 
Code, if the claim arises outside the United States in connection with 
activities of individuals who are performing services for the Secretary.
    (b) Period for Presentation of Claim.--A claim may not be allowed 
under this section unless the claim is presented in writing to the 
Secretary of Agriculture within 2 years after the date on which the 
claim accrues.
    (c) Finality.--Notwithstanding any other provision of law, an award 
or denial of a claim by the Secretary of Agriculture under this section 
is final.

SEC. 921. <<NOTE: 7 USC 2279b.>>  OPERATION OF GRADUATE SCHOOL OF 
            DEPARTMENT OF AGRICULTURE AS NONAPPROPRIATED FUND 
            INSTRUMENTALITY.

    (a) Definitions.--In this section:

[[Page 110 STAT. 1192]]

            (1) Graduate school.--The term ``Graduate School'' means the 
        Graduate School of the Department of Agriculture.
            (2) Board.--The term ``Board'' means the General 
        Administration Board of the Graduate School.
            (3) Director.--The term ``Director'' means the Director of 
        the Graduate School.
            (4) Secretary.--The term ``Secretary'' means the Secretary 
        of Agriculture.

    (b) Operation as Nonappropriated Fund Instrumentality.--On and after 
the date of enactment of this Act, the Graduate School of the Department 
of Agriculture shall continue to operate as a nonappropriated fund 
instrumentality of the United States under the jurisdiction of the 
Department of Agriculture.
    (c) Activities of Graduate School.--Under the general supervision of 
the Secretary, the Graduate School shall develop, administer, and 
provide educational, training, and professional development activities, 
including educational activities for Federal agencies, Federal 
employees, nonprofit organizations, other entities, and members of the 
general public.
    (d) Fees and Donations.--
            (1) Collection of fees.--The Graduate School may charge and 
        retain fair and reasonable fees for the activities provided by 
        the Graduate School. The amount of the fees shall be based on 
        the cost of the activities to the Graduate School.
            (2) Acceptance of donations.--
                    (A) Acceptance and use authorized.--The Graduate 
                School may accept, use, hold, dispose, and administer 
                gifts, bequests, and devises of money, securities, and 
                other real or personal property made for the benefit of, 
                or in connection with, the Graduate School.
                    (B) Exception.--The Graduate School shall not accept 
                a donation from a person that is actively engaged in a 
                procurement activity with the Graduate School or has an 
                interest that may be substantially affected by the 
                performance or nonperformance of an official duty of a 
                member of the Board or an employee of the Graduate 
                School.
            (3) Not federal funds.--Fees collected under paragraph (1) 
        and amounts received under paragraph (2) shall not be considered 
        to be Federal funds and shall not be required to be deposited in 
        the Treasury of the United States.

    (e) General Administration Board and Director.--
            (1) Appointment as governing board.--The Secretary shall 
        appoint a General Administration Board to serve as a governing 
        board for the Graduate School and to supervise and direct the 
        activities of the Graduate School. The Board shall be subject to 
        regulation by the Secretary.
            (2) Duties of board.--The Board shall--
                    (A) formulate broad policies in accordance with 
                which the Graduate School shall be administered;
                    (B) take all steps necessary to ensure that the 
                highest possible educational standards are maintained by 
                the Graduate School;
                    (C) exercise general supervision over the 
                administration of the Graduate School; and
                    (D) establish such bylaws, rules, and procedures as 
                may be necessary for the fulfillment of the duties 
                described in subparagraphs (A), (B), and (C).

[[Page 110 STAT. 1193]]

            (3) Appointment of director and other officers.--The Board 
        shall select a Director and such other officers as the Board 
        considers necessary to administer the Graduate School. The 
        Director and other officers shall serve on such terms and 
        perform such duties as the Board may prescribe.
            (4) Duties of director.--The Director shall be responsible, 
        subject to the supervision and direction of the Board, for 
        carrying out the functions of the Graduate School.
            (5) Borrowing and investment authority.--The Board may 
        authorize the Director--
                    (A) to borrow money on the credit of the Graduate 
                School; and
                    (B) to invest funds held in excess of the current 
                operating requirements of the Graduate School for 
                purposes of maintaining a reasonable reserve.
            (6) Liability.--The Director and the members of the Board 
        shall not be held personally liable for any loss or damage that 
        may accrue to the funds of the Graduate School as the result of 
        any act or exercise of discretion performed in carrying out 
        their duties under this section.

    (f) Employees.--Employees of the Graduate School are employees of a 
nonappropriated fund instrumentality and shall not be considered to be 
Federal employees.
    (g) Not a Federal Agency.--The Graduate School shall not be 
considered to be a Federal agency for purposes of--
            (1) the Federal Advisory Committee Act (5 U.S.C. App.);
            (2) section 552 or 552a of title 5, United States Code; or
            (3) chapter 171 of title 28, United States Code.

    (h) Acquisition and Disposal of Property.--In order to carry out the 
activities of the Graduate School, the Graduate School may--
            (1) acquire real property in the District of Columbia and in 
        other places by lease, purchase, or otherwise;
            (2) maintain, enlarge, or remodel any such property;
            (3) have sole control of any such property; and
            (4) dispose of real and personal property without regard to 
        the Federal Property and Administrative Services Act of 1949 (40 
        U.S.C. 471 et seq.).

    (i) Contract Authority.--The Graduate School may enter into 
contracts without regard to the Federal Property and Administrative 
Services Act of 1949 (40 U.S.C. 471 et seq.) or any other law that 
prescribes procedures for the procurement of property or services by an 
executive agency.
    (j) Use of Department Facilities and Resources.--The Graduate School 
may use the facilities and resources of the Department of Agriculture, 
on the condition that any costs incurred by the Department that are 
attributable solely to Graduate School operations and all costs incurred 
by the Graduate School arising out of such operations shall be paid 
using funds of the Graduate School. Federal funds may not be used to pay 
the costs.

SEC. 922. <<NOTE: 7 USC 2279c.>>  STUDENT INTERNSHIP PROGRAMS.

    (a) Student Intern Subsistence Program.--
            (1) Definition of student intern.--In this subsection, the 
        term ``student intern'' means a person who--

[[Page 110 STAT. 1194]]

                    (A) is employed by the Department of Agriculture 
                (referred to in this section as the ``Department'') to 
                assist scientific, professional, administrative, or 
                technical employees of the Department; and
                    (B) is a student in good standing at an institution 
                of higher education (as defined in section 1201 of the 
                Higher Education Act of 1965 (20 U.S.C. 1141)) pursuing 
                a course of study related to the field in which the 
                person is employed by the Department.
            (2) Payment of certain expenses by the secretary.--The 
        Secretary of Agriculture (referred to in this section as the 
        ``Secretary'') may, out of user fee funds or funds appropriated 
        to any agency of the Department, pay for lodging expenses, 
        subsistence expenses, and transportation expenses of a student 
        intern at the agency (including expenses of transportation to 
        and from the student intern's residence at or near the 
        institution of higher education attended by the student intern 
        and the official duty station at which the student intern is 
        employed).

    (b) Cooperation With Associations of Colleges and Universities.--
            (1) Authority to cooperate.--Notwithstanding chapter 63 of 
        title 31, United States Code, the Secretary may enter into 
        cooperative agreements on an annual basis with 1 or more 
        associations of institutions of higher education (as defined in 
        section 1201 of the Higher Education Act of 1965 (20 U.S.C. 
        1141)) for the purpose of providing for Department participation 
        in internship programs for graduate and undergraduate students 
        who are selected by the associations from students attending 
        member institutions of the associations and other institutions 
        of higher education.
            (2) Internship program.--An internship program supported 
        under this subsection (referred to in this subsection as an 
        ``internship program'') shall provide work assignments for 
        students within the Department and such other activities as the 
        association that enters into the cooperative agreement under 
        paragraph (1) with respect to the internship program (referred 
        to in this subsection as the ``cooperating association'') and 
        the Secretary shall determine. The nature of Department 
        participation in an internship program shall be developed 
        jointly by the Secretary and the cooperating association.
            (3) Program coordination.--The cooperating association shall 
        coordinate an internship program, including--
                    (A) the recruitment of students;
                    (B) arrangements for travel of the students to 
                Washington, District of Columbia, and to agency field 
                locations;
                    (C) the provision of housing for students, if 
                required; and
                    (D) all activities for the students that take place 
                outside the Department work assignments of the students.
            (4) Number and selection of students.--
                    (A) Number.--A cooperative agreement entered into 
                under paragraph (1) shall specify the number of students 
                that the Department will host each year and a list of 
                work assignments to be provided for the students.
                    (B) Selection.--The cooperating association shall 
                provide the Department with a pool of student candidates

[[Page 110 STAT. 1195]]

                meeting the requirements for each work assignment 
                identified by the Secretary. Final selection of the 
                students for Department internship positions shall be 
                made by the Secretary.
            (5) Cost reimbursement.--From such amounts as the Secretary 
        determines are available each fiscal year for internship 
        programs, and subject to such regulations as the Secretary may 
        issue, the Secretary may reimburse a cooperating association for 
        the Department share of all direct and indirect costs of an 
        internship program, including student stipends, transportation 
        costs to the internship site, and other costs of an internship 
        program.