[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[H. Res. 559 Engrossed in House (EH)]
H. Res. 559
In the House of Representatives, U. S.,
October 3, 1994.
Resolved, That upon adoption of this resolution, the House shall be
considered to have taken from the Speaker's table the bill (H.R. 4217) to reform
the Federal crop insurance program, and for other purposes, with the Senate
amendment thereto, and to have concurred in the Senate amendment with an
amendment as follows:
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Federal Crop Insurance
Reform and Department of Agriculture Reorganization Act of 1994''.
(b) Table of Contents.--The table of contents of this Act is as follows:
Sec. 1. Short title; table of contents.
TITLE I--FEDERAL CROP INSURANCE REFORM
Sec. 101. Short title; references.
Sec. 102. Definitions.
Sec. 103. Members of Board of Directors of Corporation.
Sec. 104. General powers.
Sec. 105. Personnel.
Sec. 106. Crop insurance.
Sec. 107. Crop insurance yield coverage.
Sec. 108. Preemption.
Sec. 109. Advisory Committee.
Sec. 110. Funding.
Sec. 111. Noninsured crop disaster assistance.
Sec. 112. Payment and income limitations.
Sec. 113. Producer eligibility.
Sec. 114. Ineligibility for catastrophic risk and noninsured
assistance payments.
Sec. 115. Elimination of gender references.
Sec. 116. Prevented planting.
Sec. 117. Report on improving dissemination of crop insurance
information.
Sec. 118. Crop insurance provider evaluation.
Sec. 119. Conforming amendments.
Sec. 120. Effective date.
TITLE II--DEPARTMENT OF AGRICULTURE REORGANIZATION
Sec. 201. Short title.
Sec. 202. Purpose.
Sec. 203. Definitions.
Subtitle A--General Reorganization Authorities
Sec. 211. Transfer of Department functions to Secretary of
Agriculture.
Sec. 212. Authority of Secretary to delegate transferred
functions.
Sec. 213. Reductions in number of department personnel.
Sec. 214. Consolidation of headquarters offices.
Sec. 215. Combination of field offices.
Sec. 216. Improvement of information sharing.
Sec. 217. Reports by the Secretary.
Sec. 218. Assistant Secretaries of Agriculture.
Sec. 219. Pay increases prohibited.
Subtitle B--Farm and Foreign Agricultural Services
Sec. 225. Under Secretary of Agriculture for Farm and Foreign
Agricultural Services.
Sec. 226. Consolidated Farm Service Agency.
Sec. 227. State, county, and area committees.
Subtitle C--Rural Economic and Community Development
Sec. 231. Under Secretary of Agriculture for Rural Economic and
Community Development.
Sec. 232. Rural Utilities Service.
Sec. 233. Rural Housing and Community Development Service.
Sec. 234. Rural Business and Cooperative Development Service.
Sec. 235. Conforming amendments regarding Rural Electrification
Administration.
Subtitle D--Food, Nutrition, and Consumer Services
Sec. 241. Under Secretary of Agriculture for Food, Nutrition,
and Consumer Services.
Subtitle E--Natural Resources and Environment
Sec. 245. Under Secretary of Agriculture for Natural Resources
and Environment.
Sec. 246. Natural Resources Conservation Service.
Sec. 247. Reorganization of Forest Service.
Subtitle F--Research, Education, and Economics
Sec. 251. Under Secretary of Agriculture for Research,
Education, and Economics.
Sec. 252. Program staff.
Subtitle G--Food Safety
Sec. 261. Under Secretary of Agriculture for Food Safety.
Sec. 262. Conditions for implementation of alterations in the
level of additives allowed in
animal diets.
Subtitle H--National Appeals Division
Sec. 271. Definitions.
Sec. 272. National Appeals Division and Director.
Sec. 273. Transfer of functions.
Sec. 274. Notice and opportunity for hearing.
Sec. 275. Informal hearings.
Sec. 276. Right of participants to Division hearing.
Sec. 277. Division hearings.
Sec. 278. Director review of determinations of hearing
officers.
Sec. 279. Judicial review.
Sec. 280. Implementation of final determinations of Division.
Sec. 281. Conforming amendments relating to National Appeals
Division.
Sec. 282. Expansion of issues covered by State mediation
programs.
Sec. 283. Authorization of appropriations.
Subtitle I--Miscellaneous Reorganization Provisions
Sec. 291. Successorship provisions relating to bargaining units
and exclusive representatives.
Sec. 292. Purchase of American-made equipment and products.
Sec. 293. Miscellaneous conforming amendments.
Sec. 294. Removal of obsolete administrative provisions.
Sec. 295. Proposed conforming amendments.
Sec. 296. Termination of authority.
TITLE III--MISCELLANEOUS
Sec. 301. Poultry labeling.
Sec. 302. First Amendment rights of employees of the United
States Department of Agriculture.
Sec. 303. Adjusted cost of thrifty food plan.
Sec. 304. Office of Risk Assessment and Cost-Benefit Analysis.
Sec. 305. Fair and equitable treatment of socially
disadvantaged producers.
Sec. 306. Aviation inspections.
TITLE I--FEDERAL CROP INSURANCE REFORM
SEC. 101. SHORT TITLE; REFERENCES.
(a) Short Title.--This title may be cited as the ``Federal Crop Insurance
Reform Act of 1994''.
(b) References to Federal Crop Insurance Act.--Except as otherwise expressly
provided, whenever in this title an amendment or repeal is expressed in terms of
an amendment to, or repeal of, a section or other provision, the reference shall
be considered to be made to a section or other provision of the Federal Crop
Insurance Act (7 U.S.C. 1501 et seq.).
SEC. 102. DEFINITIONS.
(a) In General.--Section 502 (7 U.S.C. 1502) is amended--
(1) by striking the section heading and ``Sec. 502.'' and inserting
the following:
``SEC. 502. PURPOSE AND DEFINITIONS.
``(a) Purpose.--''; and
(2) by adding at the end the following new subsection:
``(b) Definitions.--As used in this title:
``(1) Additional coverage.--The term `additional coverage' means a
plan of crop insurance coverage providing a level of coverage greater
than the level available under catastrophic risk protection.
``(2) Approved insurance provider.--The term `approved insurance
provider' means a private insurance provider that has been approved by
the Corporation to provide insurance coverage to producers participating
in the Federal crop insurance program established under this title.
``(3) Board.--The term `Board' means the Board of Directors of the
Corporation established under section 505(a).
``(4) Corporation.--The term `Corporation' means the Federal Crop
Insurance Corporation established under section 503.
``(5) Department.--The term `Department' means the United States
Department of Agriculture.
``(6) Loss ratio.--The term `loss ratio' means the ratio of all sums
paid by the Corporation as indemnities under any eligible crop insurance
policy to that portion of the premium designated for anticipated losses
and a reasonable reserve, other than that portion of the premium
designated for operating and administrative expenses.
``(7) Secretary.--The term `Secretary' means the Secretary of
Agriculture.
``(8) Transitional yield.--The term `transitional yield' means the
maximum average production per acre or equivalent measure that is
assigned to acreage for a crop year by the Corporation in accordance
with the regulations of the Corporation whenever the producer fails--
``(A) to certify that acceptable documentation of production
and acreage for the crop year is in the possession of the
producer; or
``(B) to present the acceptable documentation on the demand
of the Corporation or an insurance company reinsured by the
Corporation.''.
(b) Conforming Amendments.--
(1) The first sentence of section 503 (7 U.S.C. 1503) is amended by
striking ``(herein called the Corporation)''.
(2) Section 504 (7 U.S.C. 1504) is amended--
(A) in subsection (a), by striking ``Board of Directors of
the Corporation'' and inserting ``Board''; and
(B) in subsection (d), by striking ``Federal Crop Insurance
Corporation'' and inserting ``Corporation''.
(3) The first sentence of section 505(a) (7 U.S.C. 1505(a)) is
amended by striking ``(hereinafter called the `Board')''.
(4) Except in section 502, the Act is amended--
(A) by striking ``Board of Directors'' each place it appears
and inserting ``Board'';
(B) by striking ``Department of Agriculture'' each place it
appears and inserting ``Department''; and
(C) by striking ``Secretary of Agriculture'' each place it
appears and inserting ``Secretary''.
SEC. 103. MEMBERS OF BOARD OF DIRECTORS OF CORPORATION.
The second sentence of section 505(a) (7 U.S.C. 1505(a)) is amended--
(1) by striking ``or Assistant Secretary'' the first place it
appears; and
(2) by striking ``the Under Secretary or Assistant Secretary of
Agriculture responsible for the farm credit programs of the Department
of Agriculture'' and inserting ``one additional Under Secretary of
Agriculture (as designated by the Secretary of Agriculture)''.
SEC. 104. GENERAL POWERS.
Section 506 (7 U.S.C. 1506) is amended--
(1) by redesignating subsections (j) through (n) as subsections (k)
through (o), respectively;
(2) by inserting after subsection (i) the following new subsection:
``(j) Settling Claims.--The Corporation shall have the authority to make
final and conclusive settlement and adjustment of any claim by or against the
Corporation or a fiscal officer of the Corporation.'';
(3) in subsection (l) (as so redesignated)--
(A) in the first sentence, by inserting ``, and issue
regulations,'' after ``agreements''; and
(B) in the second sentence, by striking ``contracts or
agreements'' each place it appears and inserting ``contracts,
agreements, or regulations'';
(4) in subsection (n)(1) (as so redesignated), by striking
subparagraph (B) and inserting the following new subparagraph:
``(B) disqualify the person from purchasing catastrophic
risk protection or receiving noninsured assistance for a period
of not to exceed 2 years, or from receiving any other benefit
under this title for a period of not to exceed 10 years.'';
(5) in subsection (o) (as so redesignated)--
(A) by redesignating paragraphs (1) through (4) as
subparagraphs (A) through (D) and aligning the margins of each
subparagraph with the margins of subparagraph (A) of subsection
(n)(1) (as redesignated by paragraph (1));
(B) by striking ``(o) Actuarial Soundness.--The
Corporation'' and inserting the following:
``(o) Actuarial Soundness.--
``(1) Projected loss ratio as of october 1, 1995.--The
Corporation'';
(C) in subparagraph (A) (as redesignated by subparagraph
(A)), by striking ``from obtaining adequate Federal crop
insurance, as determined by the Corporation'' and inserting
``(as defined by the Secretary) from obtaining Federal crop
insurance'';
(D) in subparagraph (C) (as so redesignated)--
(i) by inserting ``, agents, and loss adjusters''
after ``participating producers''; and
(ii) by inserting ``, agents, and loss adjusters''
after ``identify insured producers''; and
(E) by adding at the end the following new paragraphs:
``(2) Projected loss ratio as of october 1, 1998.--The Corporation
shall take such actions, including the establishment of adequate
premiums, as are necessary to improve the actuarial soundness of Federal
multiperil crop insurance made available under this title to achieve, on
and after October 1, 1998, an overall projected loss ratio of not
greater than 1.075.
``(3) Nonstandard classification system.--To the extent that the
Corporation uses the nonstandard classification system, the Corporation
shall apply the system to all insured producers in a fair and consistent
manner.''; and
(6) by adding at the end the following new subsections:
``(p) Regulations.--The Secretary and the Corporation are each authorized to
issue such regulations as are necessary to carry out this title.
``(q) Program Compliance.--
``(1) Timeliness.--The Corporation shall work actively with approved
insurance providers to address program compliance and integrity issues
as the issues develop.
``(2) Notification of compliance problems.--The Corporation shall
notify in writing any approved insurance provider with whom the
Corporation has an agreement under this title of any error, omission, or
failure to follow Corporation regulations or procedures for which the
approved insurance provider may be responsible and which may result in a
debt owed the Corporation. The notice shall be given within 3 years of
the end of the insurance period during which the error, omission, or
failure is alleged to have occurred, except that this time limit shall
not apply with respect to errors, omissions, or procedural violations
that are willful or intentional. The failure to timely provide the
notice required under this subsection shall relieve the approved
insurance provider from the debt owed the Corporation.
``(r) Purchase of American-Made Equipment and Products.--
``(1) Sense of congress.--It is the sense of Congress that, to the
greatest extent practicable, all equipment and products purchased by the
Corporation using funds made available to the Corporation should be
American-made.
``(2) Notice requirement.--In providing financial assistance to, or
entering into any contract with, any entity for the purchase of
equipment and products to carry out this title, the Corporation, to the
greatest extent practicable, shall provide to the entity a notice
describing the statement made in paragraph (1).''.
SEC. 105. PERSONNEL.
Section 507 (7 U.S.C. 1507) is amended--
(1) in subsection (a), by striking ``, and county crop insurance
committeemen'';
(2) in subsection (d), by striking ``of this Act,'' and all that
follows through ``agency''; and
(3) by adding at the end the following new subsection:
``(g)(1) The Corporation shall establish a management-level position to be
known as the Specialty Crops Coordinator.
``(2) The Specialty Crops Coordinator shall have primary responsibility for
addressing the needs of specialty crop producers, and for providing information
and advice, in connection with the activities of the Corporation to improve and
expand the insurance program for specialty crops. In carrying out this
paragraph, the Specialty Crops Coordinator shall act as the liaison of the
Corporation with representatives of specialty crop producers and assist the
Corporation with the knowledge, expertise, and familiarity of the producers with
risk management and production issues pertaining to specialty crops.
``(3) The Specialty Crops Coordinator shall use information collected from
Corporation field office directors in States in which specialty crops have a
significant economic effect and from other sources, including the extension
service and colleges and universities.''.
SEC. 106. CROP INSURANCE.
Section 508 (7 U.S.C. 1508) is amended to read as follows:
``SEC. 508. CROP INSURANCE.
``(a) Authority to Offer Insurance.--
``(1) In general.--If sufficient actuarial data are available (as
determined by the Corporation), the Corporation may insure, or provide
reinsurance for insurers of, producers of agricultural commodities grown
in the United States under 1 or more plans of insurance determined by
the Corporation to be adapted to the agricultural commodity concerned.
To qualify for coverage under a plan of insurance, the losses of the
insured commodity must be due to drought, flood, or other natural
disaster (as determined by the Secretary).
``(2) Period.--Except in the cases of tobacco and potatoes,
insurance shall not extend beyond the period during which the insured
commodity is in the field. As used in the preceding sentence, in the
case of an aquacultural species, the term `field' means the environment
in which the commodity is produced.
``(3) Exclusions.--Insurance provided under this subsection shall
not cover losses due to--
``(A) the neglect or malfeasance of the producer;
``(B) the failure of the producer to reseed to the same crop
in such areas and under such circumstances as it is customary to
reseed; or
``(C) the failure of the producer to follow good farming
practices (as determined by the Secretary).
``(4) Expansion to other areas or single producers.--
``(A) Area expansion.--The Corporation may offer plans of
insurance or reinsurance for production of agricultural
commodities in the Commonwealth of Puerto Rico, the Virgin
Islands, Guam, American Samoa, the Commonwealth of the Northern
Mariana Islands, the Republic of the Marshall Islands, the
Federated States of Micronesia, and the Republic of Palau in the
same manner as provided in this section for production of
agricultural commodities in the United States.
``(B) Producer expansion.--In an area in the United States
or specified in subparagraph (A) where crop insurance is not
available for a particular agricultural commodity, the
Corporation may offer to enter into a written agreement with an
individual producer operating in the area for insurance coverage
under this title if the producer has actuarially sound data
relating to the production by the producer of the commodity and
the data is acceptable to the Corporation.
``(5) Dissemination of crop insurance information.--The Corporation
shall make available to producers through local offices of the
Department--
``(A) current and complete information on all aspects of
Federal crop insurance; and
``(B) a listing of insurance agents and companies offering
to sell crop insurance in the area of the producers.
``(6) Addition of new and specialty crops.--
``(A) Data collection.--Not later than 180 days after the
date of enactment of this paragraph, the Secretary shall issue
guidelines for publication in the Federal Register for data
collection to assist the Corporation in formulating crop
insurance policies for new and specialty crops.
``(B) Addition of new crops.--Not later than 1 year after
the date of enactment of this paragraph, and annually
thereafter, the Corporation shall report to Congress on the
progress and expected timetable for expanding crop insurance
coverage under this title to new and specialty crops.
``(C) Addition of direct sale perishable crops.--Not later
than 1 year after the date of enactment of this paragraph, the
Corporation shall report to Congress on the feasibility of
offering a crop insurance program designed to meet the needs of
specialized producers of vegetables and other perishable crops
who market through direct marketing channels.
``(b) Catastrophic Risk Protection.--
``(1) In general.--The Corporation shall offer a catastrophic risk
protection plan to indemnify producers for crop loss due to loss of
yield or prevented planting, if provided by the Corporation, when the
producer is unable, because of drought, flood, or other natural disaster
(as determined by the Secretary), to plant other crops for harvest on
the acreage for the crop year.
``(2) Amount of coverage.--
``(A) In general.--Subject to subparagraph (B)--
``(i) in the case of each of the 1995 through 1998
crop years, catastrophic risk protection shall offer a
producer coverage for a 50 percent loss in yield, on an
individual yield or area yield basis, indemnified at 60
percent of the expected market price, or a comparable
coverage (as determined by the Corporation); and
``(ii) in the case of each of the 1999 and
subsequent crop years, catastrophic risk protection
shall offer a producer coverage for a 50 percent loss in
yield, on an individual yield or area yield basis,
indemnified at 55 percent of the expected market price,
or a comparable coverage (as determined by the
Corporation).
``(B) Reduction in actual payment.--The amount paid to a
producer on a claim under catastrophic risk protection may
reflect a reduction that is proportional to the out-of-pocket
expenses that are not incurred by the producer as a result of
not planting, growing, or harvesting the crop for which the
claim is made, as determined by the Corporation.
``(3) Yield and loss basis.--A producer shall have the option of
basing the catastrophic coverage of the producer on an individual yield
and loss basis or on an area yield and loss basis, if both options are
offered by the Corporation.
``(4) Sale of catastrophic risk coverage.--
``(A) In general.--Catastrophic risk coverage may be offered
by--
``(i) approved insurance providers, if available in
an area; and
``(ii) at the option of the Secretary that is based
on considerations of need, local offices of the
Department.
``(B) Need.--For purposes of considering need under
subparagraph (A)(ii), the Secretary may take into account the
most efficient and cost-effective use of resources, the
availability of personnel, fairness to local producers, the
needs and convenience of local producers, and the availability
of private insurance carriers.
``(5) Administrative fee.--
``(A) Fee required.--Producers shall pay an administrative
fee for catastrophic risk protection. The administrative fee for
each producer shall be $50 per crop per county, but not to
exceed $200 per producer per county up to a maximum of $600 per
producer for all counties in which a producer has insured crops.
The administrative fee shall be paid by the producer at the time
the producer applies for catastrophic risk protection.
``(B) Use of fees.--
``(i) Fees up to $100.--
``(I) Fees collected by usda offices.--Not
more than $100 of the administrative fees paid
by a producer for catastrophic risk coverage
that are collected by an office of the
Department shall be credited to the
appropriations account providing funds for the
payment of operating and administrative expenses
incurred for the delivery of catastrophic risk
protection under this section. The fees shall be
collected in accordance with appropriation Acts
and shall be available until expended without
fiscal year limitation for the payment of the
expenses.
``(II) Fees collected by approved insurance
providers.--Not more than $100 of the
administrative fees paid by a producer for
catastrophic risk coverage that are collected by
an approved insurance provider shall be retained
by the provider as payment for operating and
administrative expenses incurred for the
delivery of catastrophic risk protection.
``(ii) Fees in excess of $100.--Notwithstanding the
authority granted to the Secretary under the Federal
Crop Insurance Corporation account provisions of the
Agricultural, Rural Development, Food and Drug
Administration, and Related Agencies Appropriations Act,
1995, all fees collected under this subsection in excess
of $100 per producer per county shall be deposited in
the crop insurance fund established under section
516(c), to be available for the programs and activities
of the Corporation.
``(C) Waiver of fee.--The Corporation shall waive the
administrative fee for limited resource farmers, as defined by
the Corporation.
``(6) Participation requirement.--A producer may obtain catastrophic
risk coverage for a crop of the producer on land in the county only if
the producer obtains the coverage for the crop on all insurable land of
the producer in the county.
``(7) Eligibility for department programs.--
``(A) In general.--To be eligible for any price support or
production adjustment program, the conservation reserve program,
or any benefit described in section 371 of the Consolidated Farm
and Rural Development Act, the producer must obtain at least the
catastrophic level of insurance for each crop of economic
significance grown on each farm in the county in which the
producer has an interest, if insurance is available in the
county for the crop.
``(B) Definition of crop of economic significance.--As used
in this paragraph, the term `crop of economic significance'
means a crop that has contributed, or is expected to contribute,
10 percent or more of the total expected value of all crops
grown by the producer.
``(8) Limitation due to risk.--The Corporation may limit
catastrophic risk coverage in any county or area, or on any farm, on the
basis of the insurance risk concerned.
``(9) Transitional coverage for 1995 crops.--Effective only for a
1995 crop planted or for which insurance attached prior to January 1,
1995, the Corporation shall allow producers of the crops until not later
than the end of the 180-day period beginning on the date of enactment of
the Federal Crop Insurance Reform Act of 1994 to obtain catastrophic
risk protection for the crop. On enactment of such Act, a producer who
made timely purchases of a crop insurance policy before the date of
enactment of such Act, under the provisions of this title then in
effect, shall be eligible for the same benefits to which a producer
would be entitled under comparable additional coverage under subsection
(c).
``(10) Simplification.--
``(A) Catastrophic risk protection plans.--In developing and
carrying out the policies and procedures for a catastrophic risk
protection plan under this title, the Corporation shall, to the
maximum extent practicable, minimize the paperwork required and
the complexity and costs of procedures governing applications
for, processing, and servicing of the plan for all parties
involved.
``(B) Other plans.--To the extent that the policies and
procedures developed under subparagraph (A) may be applied to
other plans of insurance offered under this title without
jeopardizing the actuarial soundness or integrity of the crop
insurance program, the Corporation shall apply the policies and
procedures to the other plans of insurance within a reasonable
period of time (as determined by the Corporation) after the
effective date of this paragraph.
``(c) General Coverage Levels.--
``(1) Additional coverage generally.--
``(A) In general.--The Corporation shall offer to producers
of agricultural commodities grown in the United States plans of
crop insurance that provide additional coverage.
``(B) Purchase.--To be eligible for additional coverage, a
producer must apply to an approved insurance provider for
purchase of additional coverage if the coverage is available
from an approved insurance provider. If additional coverage is
unavailable privately, the Corporation may offer additional
coverage plans of insurance directly to producers.
``(2) Transfer of relevant information.--If a producer has already
applied for catastrophic risk protection at the local office of the
Department and elects to purchase additional coverage, the relevant
information for the crop of the producer shall be transferred to the
approved insurance provider servicing the additional coverage crop
policy.
``(3) Yield and loss basis.--A producer shall have the option of
purchasing additional coverage based on an individual yield and loss
basis or on an area yield and loss basis, if both options are offered by
the Corporation.
``(4) Level of coverage.--The level of coverage shall be dollar
denominated and may be purchased at any level not to exceed 85 percent
of the individual yield or 95 percent of the area yield (as determined
by the Corporation). Not later than the beginning of the 1996 crop year,
the Corporation shall provide producers with information on catastrophic
risk and additional coverage in terms of dollar coverage (within the
allowable limits of coverage provided in this paragraph).
``(5) Price level.--The Corporation shall establish a price level
for each commodity on which insurance is offered that--
``(A) shall not be less than the projected market price for
the commodity (as determined by the Corporation); or
``(B) at the discretion of the Corporation, may be based on
the actual market price at the time of harvest (as determined by
the Corporation).
``(6) Price elections.--
``(A) In general.--Subject to subparagraph (B), insurance
coverage shall be made available to a producer on the basis of
any price election that equals or is less than the price
election established by the Corporation. The coverage shall be
quoted in terms of dollars per acre.
``(B) Minimum price elections.--The Corporation may
establish minimum price elections below which levels of
insurance shall not be offered.
``(C) Wheat classes and malting barley.--The Corporation
shall, as the Corporation determines practicable, offer
producers different price elections for classes of wheat and
malting barley (including contract prices in the case of malting
barley), in addition to the standard price election, that
reflect different market prices, as determined by the
Corporation. The Corporation shall, as the Corporation
determines practicable, offer additional coverage for each class
determined under this subparagraph and charge a premium for each
class that is actuarially sound.
``(7) Fire and hail coverage.--For levels of additional coverage
equal to 65 percent or more of the recorded or appraised average yield
indemnified at 100 percent of the expected market price, or an
equivalent coverage, a producer may elect to delete from the additional
coverage any coverage against damage caused by fire and hail if the
producer obtains an equivalent or greater dollar amount of coverage for
damage caused by fire and hail from an approved insurance provider. On
written notice of the election to the company issuing the policy
providing additional coverage and submission of evidence of substitute
coverage on the commodity insured, the premium of the producer shall be
reduced by an amount determined by the Corporation to be actuarially
appropriate, taking into account the actuarial value of the remaining
coverage provided by the Corporation. In no event shall the producer be
given credit for an amount of premium determined to be greater than the
actuarial value of the protection against losses caused by fire and hail
that is included in the additional coverage for the crop.
``(8) State premium subsidies.--The Corporation may enter into an
agreement with any State or agency of a State under which the State or
agency may pay to the approved insurance provider an additional premium
subsidy to further reduce the portion of the premium paid by producers
in the State.
``(9) Limitations on additional coverage.--The Board may limit the
availability of additional coverage under this subsection in any county
or area, or on any farm, on the basis of the insurance risk involved.
The Board shall not offer additional coverage equal to less than 50
percent of the recorded or appraised average yield indemnified at 100
percent of the expected market price, or an equivalent coverage.
``(10) Administrative fee.--
``(A) Fee required.--Except as otherwise provided in this
paragraph, if a producer elects to purchase additional coverage
for a crop at a level that is less than 65 percent of the
recorded or appraised average yield indemnified at 100 percent
of the expected market price, or an equivalent coverage, the
producer shall pay an administrative fee for the additional
coverage. Subsection (b)(5) shall apply in determining the
amount and use of the administrative fee or in determining
whether to waive the administrative fee.
``(B) Exception.--If a producer elects to purchase
additional coverage for a crop equal to 65 percent or more of
the recorded or appraised average yield indemnified at 100
percent of the expected market price, or an equivalent coverage,
the producer shall not be subject to the administrative fee
required by this paragraph or subsection (b)(5). If the producer
has already paid the administrative fee for a lower level of
coverage for the crop, the administrative fee shall be refunded
to the producer unless the refund would reduce to less than $200
the total amount of the administrative fees paid by the producer
for 2 or more crops in the same county for which a lower level
of coverage is obtained.
``(C) Additional fee.--If a producer elects to purchase
additional coverage for a crop equal to or exceeding 65 percent
of the recorded or appraised average yield and 100 percent of
the expected market price or an equivalent coverage, the
producer shall pay an administrative fee of $10 for the
coverage. If a producer has already paid an administrative fee
for lesser coverage for the crop, the fee for lesser coverage
shall be refunded to the producer unless the producer has paid
the maximum fee for lesser coverage and refund of the fee will
not reduce the amount to be paid below the maximum amount.
``(D) Deposit of fees.--Notwithstanding the authority
granted to the Secretary under the Federal Crop Insurance
Corporation account provisions of the Agricultural, Rural
Development, Food and Drug Administration, and Related Agencies
Appropriations Act, 1995, administrative fees collected under
subparagraph (B) in excess of $100 per producer per county and
under subparagraph (C) shall be deposited in the insurance fund
established under section 516(c) to be available for the
programs and activities of the Corporation.
``(d) Premiums.--
``(1) Premiums required.--The Corporation shall fix adequate
premiums for all the plans of insurance of the Corporation at such rates
as the Board determines are actuarially sufficient to attain an expected
loss ratio of not greater than 1.1 through September 30, 1998, and not
greater than 1.075 after October 1, 1998.
``(2) Premium amounts.--The premium amounts for catastrophic risk
protection under subsection (b) and additional coverage under subsection
(c) shall be fixed as follows:
``(A) In the case of catastrophic risk protection, the
amount of the premium shall be sufficient to cover anticipated
losses and a reasonable reserve.
``(B) In the case of additional coverage below 65 percent of
the recorded or appraised average yield indemnified at 100
percent of the expected market price, or an equivalent coverage,
but greater than 50 percent of the recorded or appraised average
yield indemnified at 100 percent of the expected market price,
or an equivalent coverage, the amount of the premium shall--
``(i) be sufficient to cover anticipated losses and
a reasonable reserve; and
``(ii) include an amount for operating and
administrative expenses, as determined by the
Corporation.
``(C) In the case of additional coverage equal to or greater
than 65 percent of the recorded or appraised average yield
indemnified at 100 percent of the expected market price, or an
equivalent coverage, the amount of the premium shall--
``(i) be sufficient to cover anticipated losses and
a reasonable reserve; and
``(ii) include an amount for operating and
administrative expenses, as determined by the
Corporation, on an industry-wide basis as a percentage
of the amount of the premium used to define loss ratio.
``(e) Payment of Portion of Premium by Corporation.--
``(1) In general.--For the purpose of encouraging the broadest
possible participation of producers in the catastrophic risk protection
provided under subsection (b) and the additional coverage provided under
subsection (c), the Corporation shall pay a part of the premium in the
amounts provided in accordance with this subsection.
``(2) Amount of payment.--The amount of the premium to be paid by
the Corporation shall be as follows:
``(A) In the case of catastrophic risk protection, the
amount shall be equivalent to the premium established for
catastrophic risk protection under subsection (d)(2)(A).
``(B) In the case of coverage below 65 percent of the
recorded or appraised average yield indemnified at 100 percent
of the expected market price, or an equivalent coverage, but
greater than 50 percent of the recorded or appraised average
yield indemnified at 100 percent of the expected market price,
or an equivalent coverage, the amount shall be equivalent to the
amount of premium established for catastrophic risk protection
coverage and the amount of operating and administrative expenses
established under subsection (d)(2)(B).
``(C) In the case of coverage equal to or greater than 65
percent of the recorded or appraised average yield indemnified
at 100 percent of the expected market price, or an equivalent
coverage, on an individual or area basis, the amount shall be
equivalent to an amount equal to the premium established for 50
percent loss in yield indemnified at 75 percent of the expected
market price and the amount of operating and administrative
expenses established under subsection (d)(2)(C).
``(3) Premium reduction.--If an approved insurance provider
determines that the provider may provide insurance more efficiently than
the expense reimbursement amount established by the Corporation, the
approved insurance provider may reduce, subject to the approval of the
Corporation, the premium charged the insured by an amount corresponding
to the efficiency. The approved insurance provider shall apply to the
Corporation for authority to reduce the premium before making such a
reduction, and the reduction shall be subject to the rules, limitations,
and procedures established by the Corporation.
``(4) Individual and area crop insurance coverage.--The Corporation
shall allow approved insurance providers to offer a plan of insurance to
producers that combines both individual yield coverage and area yield
coverage at a premium rate determined by the provider under the
following conditions:
``(A) The individual yield coverage shall be equal to or
greater than catastrophic risk protection as described in
subsection (b).
``(B) The combined policy shall include area yield coverage
that is offered by the Corporation or similar area coverage, as
determined by the Corporation.
``(C) The Corporation shall provide reinsurance on the area
yield portion of the combined policy at the request of the
provider, except that the provider shall agree to pay to the
producer any portion of the area yield and loss indemnity
payment received from the Corporation or a commercial reinsurer
that exceeds the individual indemnity payment made by the
provider to the producer.
``(D) The Corporation shall pay a part of the premium
equivalent to--
``(i) the amount authorized under paragraph (2)
(except provisions regarding operating and
administrative expenses); and
``(ii) the amount of operating and administrative
expenses authorized by the Corporation for the area
yield coverage portion of the combined policy.
``(E) The provider shall provide all underwriting services
for the combined policy, including the determination of
individual yield coverage premium rates, the terms and
conditions of the policy, and the acceptance and classification
of applicants into risk categories, subject to subparagraph (F).
``(F) The Corporation shall approve the combined policy
unless the Corporation determines that the policy is not
actuarially sound or that the interests of producers are not
adequately protected.
``(f) Eligibility.--
``(1) In general.--To participate in catastrophic risk protection
coverage under this section, a producer shall submit an application at
the local office of the Department or to an approved insurance provider.
``(2) Sales closing date.--For coverage under this title, each
producer shall purchase crop insurance on or before the sales closing
date for the crop by providing the required information and executing
the required documents. Subject to the goal of ensuring actuarial
soundness for the crop insurance program, the sales closing date shall
be established by the Corporation to maximize convenience to producers
in obtaining benefits under price and production adjustment programs of
the Department. Beginning with the 1995 crop year, the Corporation shall
establish, for an insurance policy for each insurable crop that is
planted in the spring, a sales closing date that is 30 days earlier than
the corresponding sales closing date that was established for the 1994
crop year.
``(3) Records and reporting.--To obtain catastrophic risk protection
under subsection (b) or additional coverage under subsection (c), a
producer shall--
``(A) provide, to the extent required by the Corporation,
records acceptable to the Corporation of historical acreage and
production of the crops for which the insurance is sought or
accept a yield determined by the Corporation; and
``(B) report acreage planted and prevented from planting by
the designated acreage reporting date for the crop and location
as established by the Corporation.
``(g) Yield Determinations.--
``(1) In general.--Subject to paragraph (2), the Corporation shall
establish crop insurance underwriting rules that ensure that yield
coverage, as specified in this subsection, is provided to eligible
producers obtaining catastrophic risk protection under subsection (b) or
additional coverage under subsection (c).
``(2) Yield coverage plans.--
``(A) Actual production history.--Subject to subparagraph
(B), the yield for a crop shall be based on the actual
production history for the crop, if the crop was produced on the
farm without penalty during each of the 4 crop years immediately
preceding the crop year for which actual production history is
being established, building up to a production data base for
each of the 10 consecutive crop years preceding the crop year
for which actual production history is being established.
``(B) Assigned yield.--If the producer does not provide
satisfactory evidence of the yield of a commodity under
subparagraph (A), the producer shall be assigned a yield that is
not less than 65 percent of the transitional yield of the
producer (adjusted to reflect actual production reflected in the
records acceptable to the Corporation for continuous years), as
specified in regulations issued by the Corporation based on
production history requirements.
``(C) Area yield.--The Corporation may offer a crop
insurance plan based on an area yield that allows an insured
producer to qualify for an indemnity if a loss has occurred in
an area (as specified by the Corporation) in which the farm of
the producer is located. Under an area yield plan, an insured
producer shall be allowed to select the level of area production
at which an indemnity will be paid consistent with such terms
and conditions as are established by the Corporation.
``(D) Commodity-by-commodity basis.--A producer may choose
between individual yield or area yield coverage or combined
coverage (as provided in subsection (e)(4)), if available, on a
commodity-by-commodity basis.
``(3) Transitional yields for producers of feed or forage.--
``(A) In general.--If a producer does not provide
satisfactory evidence of a yield under paragraph (2)(A), the
producer shall be assigned a yield that is at least 80 percent
of the transitional yield established by the Corporation
(adjusted to reflect the actual production history of the
producer) if the Secretary determines that--
``(i) the producer grows feed or forage primarily
for on-farm use in a livestock, dairy, or poultry
operation; and
``(ii) over 50 percent of the net farm income of the
producer is derived from the operation.
``(B) Yield calculation.--The Corporation shall--
``(i) for the first year of participation of a
producer, provide the assigned yield under this
paragraph to the producer of feed or forage; and
``(ii) for the second year of participation of the
producer, apply the actual production history or
assigned yield requirement, as provided in this
subsection.
``(C) Termination of authority.--The authority provided by
this paragraph shall terminate on the date that is 3 years after
the effective date of this paragraph.
``(h) Submission of Policies and Materials to Board.--
``(1) In general.--In addition to any standard forms or policies
that the Board may require be made available to producers under
subsection (c), a person may prepare for submission or propose to the
Board--
``(A) other crop insurance policies and provisions of
policies; and
``(B) rates of premiums for multiple peril crop insurance
pertaining to wheat, soybeans, field corn, and any other crops
determined by the Secretary.
``(2) Submission of policies.--A policy or other material submitted
to the Board under this subsection may be prepared without regard to the
limitations contained in this title, including the requirements
concerning the levels of coverage and rates and the requirement that a
price level for each commodity insured must equal the expected market
price for the commodity as established by the Board. In the case of such
a policy, the payment by the Corporation of a portion of the premium of
the policy may not exceed the amount that would otherwise be authorized
under subsection (e).
``(3) Review and approval by the board.--A policy or other material
submitted to the Board under this subsection shall be reviewed by the
Board and, if the Board finds that the interests of producers are
adequately protected and that any premiums charged to the producers are
actuarially appropriate, shall be approved by the Board for reinsurance
and for sale to producers as an additional choice at actuarially
appropriate rates and under appropriate terms and conditions. The
Corporation may enter into more than 1 reinsurance agreement with the
approved insurance provider simultaneously to facilitate the offering of
the new policies.
``(4) Guidelines for submission and review.--The Corporation shall
issue regulations to establish guidelines for the submission, and Board
review, of policies or other material submitted to the Board under this
subsection. At a minimum, the guidelines shall ensure the following:
``(A) A proposal submitted to the Board under this
subsection shall be considered as confidential commercial or
financial information for purposes of section 552(b)(4) of title
5, United States Code, until approved by the Board. A proposal
disapproved by the Board shall remain confidential commercial or
financial information.
``(B) The Board shall provide an applicant with the
opportunity to present the proposal to the Board in person if
the applicant so desires.
``(C) The Board shall provide an applicant with notification
of intent to disapprove a proposal not later than 30 days prior
to making the disapproval. An applicant that receives the
notification may modify the application of the applicant. Any
modification shall be considered an original application for
purposes of this paragraph.
``(D) Specific guidelines shall prescribe the timing of
submission of proposals under this subsection and timely
consideration by the Board so that any approved proposal may be
made available to all persons reinsured by the Corporation in a
manner permitting the persons to participate, if the persons so
desire, in offering such a proposal in the first crop year in
which the proposal is approved by the Board for reinsurance,
premium subsidy, or other support offered by this title.
``(5) Required publication.--Any policy, provision of a policy, or
rate approved under this subsection shall be published as a notice in
the Federal Register and made available to all persons contracting with
or reinsured by the Corporation under the terms and conditions of the
contract between the Corporation and the person originally submitting
the policy or other material.
``(6) Pilot cost of production risk protection plan.--
``(A) In general.--The Corporation shall offer, to the
extent practicable, a cost of production risk protection plan of
insurance that indemnifies producers (including new producers)
for insurable losses as provided in this paragraph.
``(B) Pilot basis.--The cost of production risk protection
plan shall--
``(i) be established as a pilot project for each of
the 1996 and 1997 crop years; and
``(ii) be carried out in a number of counties that
is determined by the Corporation to be adequate to
provide a comprehensive evaluation of the feasibility,
effectiveness, and demand among producers for the plan.
``(C) Insurable loss.--An insurable loss shall be incurred
by a producer if the gross income of the producer (as determined
by the Corporation) is less than an amount determined by the
Corporation, as a result of a reduction in yield or price
resulting from an insured cause.
``(D) Definition of new producer.--As used in this
paragraph, the term `new producer' means a person that has not
been actively engaged in farming for a share of the production
of the insured crop for more than 2 crop years, as determined by
the Secretary.
``(7) Additional prevented planting policy coverage.--
``(A) In general.--Beginning with the 1995 crop year, the
Corporation shall offer to producers additional prevented
planting coverage that insures producers against losses in
accordance with this paragraph.
``(B) Approved insurance providers.--Additional prevented
planting coverage shall be offered by the Corporation through
approved insurance providers.
``(C) Timing of loss.--A crop loss shall be covered by the
additional prevented planting coverage if--
``(i) crop insurance policies were obtained for--
``(I) the crop year the loss was
experienced; and
``(II) the crop year immediately preceding
the year of the prevented planting loss; and
``(ii) the cause of the loss occurred--
``(I) after the sales closing date for the
crop in the crop year immediately preceding the
loss; and
``(II) before the sales closing date for the
crop in the year in which the loss is
experienced.
``(8) Pilot program of assigned yields for new producers.--
``(A) Program required.--For each of the 1995 and 1996 crop
years, the Corporation shall carry out a pilot program to assign
to eligible new producers higher assigned yields than would
otherwise be assigned to the producers under subsection (g). The
Corporation shall include in the pilot program 30 counties that
are determined by the Corporation to be adequate to provide a
comprehensive evaluation of the feasibility, effectiveness, and
demand among new producers for increased assigned yields.
``(B) Increased assigned yields.--In the case of an eligible
new producer participating in the pilot program, the Corporation
shall assign to the new producer a yield that is equal to not
less than 110 percent of the transitional yield otherwise
established by the Corporation.
``(C) Eligible new producer.--The Secretary shall establish
a definition of new producer for purposes of determining
eligibility to participate in the pilot program.
``(i) Adoption of Rates and Coverages.--The Corporation shall adopt, as soon
as practicable, rates and coverages that will improve the actuarial soundness of
the insurance operations of the Corporation for those crops that are determined
to be insured at rates that are not actuarially sound, except that no rate may
be increased by an amount of more than 20 percent over the comparable rate of
the preceding crop year.
``(j) Claims for Losses.--
``(1) In general.--Under rules prescribed by the Corporation, the
Corporation may provide for adjustment and payment of claims for losses.
The rules prescribed by the Corporation shall establish standards to
ensure that all claims for losses are adjusted, to the extent
practicable, in a uniform and timely manner.
``(2) Denial of claims.--
``(A) In general.--Subject to subparagraph (B), if a claim
for indemnity is denied by the Corporation or an approved
provider, an action on the claim may be brought against the
Corporation or Secretary only in the United States district
court for the district in which the insured farm is located.
``(B) Statute of limitations.--A suit on the claim may be
brought not later than 1 year after the date on which final
notice of denial of the claim is provided to the claimant.
``(3) Indemnification.--The Corporation shall provide approved
insurance providers with indemnification, including costs and reasonable
attorney fees incurred by the approved insurance provider, due to errors
or omissions on the part of the Corporation.
``(k) Reinsurance.--
``(1) In general.--Notwithstanding any other provision of this
title, the Corporation shall, to the maximum extent practicable, provide
reinsurance to insurers approved by the Corporation that insure
producers of any agricultural commodity under 1 or more plans acceptable
to the Corporation.
``(2) Terms and conditions.--The reinsurance shall be provided on
such terms and conditions as the Board may determine to be consistent
with subsections (b) and (c) and sound reinsurance principles.
``(3) Share of risk.--The reinsurance agreements of the Corporation
with the reinsured companies shall require the reinsured companies to
bear a sufficient share of any potential loss under the agreement so as
to ensure that the reinsured company will sell and service policies of
insurance in a sound and prudent manner, taking into consideration the
financial condition of the reinsured companies and the availability of
private reinsurance.
``(4) Rate.--The rate established by the Board to reimburse approved
insurance providers and agents for the administrative and operating
costs of the providers and agents shall not exceed--
``(A) for the 1997 reinsurance year, 29 percent of the
premium used to define loss ratio;
``(B) for the 1998 reinsurance year, 28 percent of the
premium used to define loss ratio; and
``(C) for the 1999 reinsurance year, 27.5 percent of the
premium used to define loss ratio.
``(5) Cost and regulatory reduction.--Consistent with section 118 of
the Federal Crop Insurance Reform Act of 1994, and consistent with
maintenance of program integrity, prevention of fraud and abuse, the
need for program expansion, and improvement of quality of service to
customers, the Board shall alter program procedures and administrative
requirements in order to reduce the administrative and operating costs
of approved insurance providers and agents in an amount that corresponds
to any reduction in the reimbursement rate required under paragraph (4)
during the 5-year period beginning on the date of enactment of this
paragraph.
``(6) Agency discretion.--The determination of whether the
Corporation is achieving, or has achieved, corresponding administrative
cost savings shall not be subject to administrative review, and is
wholly committed to agency discretion within the meaning of section
701(a)(2) of title 5, United States Code.
``(7) Plan.--The Corporation shall submit to Congress a plan
outlining the measures that will be used to achieve the reduction
required under paragraph (5). If the Corporation can identify additional
cost reduction measures, the Corporation shall describe the measures in
the plan.
``(l) Optional Coverages.--The Corporation may offer specific risk
protection programs, including protection against prevented planting, wildlife
depredation, tree damage and disease, and insect infestation, under such terms
and conditions as the Board may determine, except that no program may be
undertaken if insurance for the specific risk involved is generally available
from private companies.
``(m) Research.--
``(1) In general.--Except as provided in paragraph (2), the
Corporation may conduct research, surveys, pilot programs, and
investigations relating to crop insurance and agriculture-related risks
and losses including insurance on losses involving reduced forage on
rangeland caused by drought and by insect infestation, livestock
poisoning and disease, destruction of bees due to the use of pesticides,
and other unique special risks related to fruits, nuts, vegetables,
aquacultural species, forest industry needs (including appreciation),
and other agricultural products as determined by the Board.
``(2) Exception.--No action may be undertaken with respect to a risk
under paragraph (1) if insurance protection against the risk is
generally available from private companies.
``(3) Evaluation.--After the completion of any pilot program under
this subsection, the Corporation shall evaluate the pilot program and
submit to the Committee on Agriculture of the House of Representatives
and the Committee on Agriculture, Nutrition, and Forestry of the Senate,
a report of the operations of the pilot program, including the
evaluation by the Corporation of the pilot program and the
recommendations of the Corporation with respect to implementing the
program on a national basis.''.
SEC. 107. CROP INSURANCE YIELD COVERAGE.
Section 508A (7 U.S.C. 1508a) is repealed.
SEC. 108. PREEMPTION.
Section 511 (7 U.S.C. 1511) is amended by adding at the end the following
sentence: ``A contract of insurance of the Corporation, and a contract of
insurance reinsured by the Corporation, shall be exempt from taxation imposed by
any State, municipality, or local taxing authority.''.
SEC. 109. ADVISORY COMMITTEE.
The Act is amended by inserting after section 514 (7 U.S.C. 1514) the
following new section:
``SEC. 515. ADVISORY COMMITTEE FOR FEDERAL CROP INSURANCE.
``(a) Establishment.--The Secretary may establish within the Department an
advisory committee to be known as the `Advisory Committee for Federal Crop
Insurance'.
``(b) Primary Responsibility.--The primary responsibility of the Advisory
Committee shall be to advise the Secretary on the implementation of this title
and on other issues related to crop insurance, as determined by the Manager of
the Corporation.
``(c) Membership.--The Advisory Committee shall be composed of the Manager
of the Corporation, the Secretary (or a designee of the Secretary), and not
fewer than 12 members representing organizations and agencies involved in the
provision of crop insurance under this title. Not fewer than 3 of the members of
the Advisory Committee shall be representatives of the specialty crops industry.
The organizations or agencies represented by members on the Advisory Committee
may include insurance companies, insurance agents, farm producer organizations,
experts on agronomic practices, and banking and lending institutions.
``(d) Administrative Provisions.--
``(1) Terms.--Members of the Advisory Committee (other than the
Manager of the Corporation and the Secretary) shall be appointed by the
Secretary for a term of up to 2 years from nominations made by the
organizations and agencies specified in subsection (c). The terms of the
members (other than the Manager of the Corporation and the Secretary)
shall be staggered.
``(2) Chairperson.--The Advisory Committee shall be chaired by the
Manager of the Corporation.
``(3) Meetings.--The Advisory Committee shall meet at least
annually. The meetings of the Advisory Committee shall be publicly
announced in advance and shall be open to the public. Appropriate
records of the activities of the Advisory Committee shall be kept and
made available to the public on request.
``(e) Reports.--Not later than June 30 of each year, the Advisory Committee
shall submit to the Secretary a report specifying the conclusions and
recommendations of the Advisory Committee regarding--
``(1) the progress toward implementation of this title;
``(2) the actuarial soundness of the Federal crop insurance program;
``(3) the rate of producer participation in both catastrophic risk
protection under section 508(b) and additional coverage under section
508(c); and
``(4) the progress toward improved crop insurance coverage for new
and specialty crops.
``(f) Termination of Authority.--The authority provided by this section
shall terminate on September 30, 1998.''.
SEC. 110. FUNDING.
Section 516 (7 U.S.C. 1516) is amended to read as follows:
``SEC. 516. FUNDING.
``(a) Authorization of Appropriations.--
``(1) Discretionary expenses.--There are authorized to be
appropriated for each of fiscal years 1995 through 2001 such sums as are
necessary to cover--
``(A) the salaries and expenses of the Corporation; and
``(B) the administrative and operating expenses of the
Corporation for the sales commissions of agents.
``(2) Mandatory expenses.--There are authorized to be appropriated
such sums as are necessary to cover--
``(A) in the case of each of the 1995 through 1997
reinsurance years, the administrative and operating expenses of
the Corporation for the sales commissions of agents, consistent
with subsection (b)(1);
``(B) premium subsidies, including the administrative and
operating expenses of an approved insurance provider for the
delivery of policies with additional coverage; and
``(C) payments for noninsured assistance losses under
section 519.
``(b) Payment of Expenses.--
``(1) Administrative and operating expenses.--
``(A) In general.--Except as provided in subparagraph (B),
in the case of each of the 1995 through 1997 reinsurance years,
the Corporation is authorized to pay from the insurance fund
established under subsection (c), the administrative and
operating expenses of an approved insurance provider, including
expenses covered by subsection (a)(1)(B).
``(B) Sales commissions for 1997 reinsurance year.--In the
case of the 1997 reinsurance year, the amount of the payments
from the insurance fund established under subsection (c) for the
expenses of the Corporation for the sales commissions of agents
may not exceed 8.5 percent of the total amount of premiums paid
for additional coverage for the 1997 reinsurance year.
``(2) Other expenses.--The Corporation is authorized to pay from the
insurance fund established under subsection (c)--
``(A) all other expenses of the Corporation (other than
expenses covered by subsection (a)(1)), including all premium
subsidies, noninsured assistance benefits, and indemnities;
``(B) subject to paragraph (1)(B), in the case of each of
the 1995 through 1997 reinsurance years, all administrative and
expense reimbursements due under a reinsurance agreement with an
approved insurance provider; and
``(C) to the extent necessary, expenses incurred by the
Corporation to carry out research and development.
``(c) Insurance Fund.--
``(1) In general.--There is established an insurance fund, for the
deposit of premium income and amounts made available under subsection
(a)(2), to be available without fiscal year limitation.
``(2) Commodity credit corporation funds.--If at any time the
amounts in the insurance fund are insufficient to enable the Corporation
to carry out subsection (b), to the extent the funds of the Commodity
Credit Corporation are available--
``(A) the Corporation may request the Secretary to use the
funds of the Commodity Credit Corporation to carry out
subsection (b); and
``(B) the Secretary may use the funds of the Commodity
Credit Corporation to carry out subsection (b).''.
SEC. 111. NONINSURED CROP DISASTER ASSISTANCE.
Section 519 (7 U.S.C. 1519) is amended to read as follows:
``SEC. 519. NONINSURED CROP DISASTER ASSISTANCE PROGRAM.
``(a) Establishment of Program.--
``(1) Establishment.--In the case of an eligible crop described in
paragraph (2), the Corporation shall establish a noninsured crop
disaster assistance program to provide coverage equivalent to the
catastrophic risk protection otherwise available under section 508(b).
``(2) Eligible crops.--
``(A) In general.--As used in this section, the term
`eligible crop' means each commercial crop or other agricultural
commodity (except livestock)--
``(i) for which catastrophic risk protection under
section 508(b) is not available; and
``(ii) that is produced for food or fiber.
``(B) Crops specifically included.--The term `eligible crop'
shall include floricultural, ornamental nursery, and Christmas
tree crops, turfgrass sod, and industrial crops.
``(3) Cause of loss.--To qualify for assistance under this section,
the losses of the noninsured commodity shall be due to drought, flood,
or other natural disaster, as determined by the Secretary.
``(b) Application for Noninsured Crop Disaster Assistance.--
``(1) Timely application.--To be eligible for assistance under this
section, a producer shall submit an application for noninsured crop
disaster assistance at a local office of the Department. The application
shall be in such form, contain such information, and be submitted at
such time as the Corporation may require.
``(2) Records.--A producer shall annually provide records, as
required by the Corporation, of previous crop acreage, acreage yields,
and production, or the producer shall accept a yield under subsection
(e)(3) determined by the Corporation.
``(3) Acreage reports.--A producer shall provide reports on acreage
planted or prevented from being planted, as required by the Corporation,
by the designated acreage reporting date for the crop and location as
established by the Corporation.
``(c) Loss Requirements.--
``(1) Required area loss.--A producer of an eligible crop shall not
receive noninsured crop disaster assistance unless the average yield for
that crop, or an equivalent measure in the event yield data are not
available, in an area falls below 65 percent of the expected area yield,
as established by the Corporation.
``(2) Prevented planting.--Subject to paragraph (1), the Corporation
shall make a prevented planting noninsured crop disaster assistance
payment if the producer is prevented from planting more than 35 percent
of the acreage intended for the eligible crop because of drought, flood,
or other natural disaster, as determined by the Secretary.
``(3) Reduced yields.--Subject to paragraph (1), the Corporation
shall make a reduced yield noninsured crop disaster assistance payment
to a producer if the total quantity of the eligible crop that the
producer is able to harvest on any farm is, because of drought, flood,
or other natural disaster as determined by the Secretary, less than 50
percent of the expected individual yield for the crop, as determined by
the Corporation, factored for the interest of the producer for the crop.
``(d) Payment.--The Corporation shall make available to a producer eligible
for noninsured assistance under this section a payment computed by multiplying--
``(1) the quantity that is less than 50 percent of the established
yield for the crop; by
``(2)(A) in the case of each of the 1995 through 1998 crop years, 60
percent of the average market price for the crop (or any comparable
coverage determined by the Corporation); or
``(B) in the case of each of the 1999 and subsequent crop years, 55
percent of the average market price for the crop (or any comparable
coverage determined by the Corporation); by
``(3) a payment rate for the type of crop (as determined by the
Corporation) that--
``(A) in the case of a crop that is produced with a
significant and variable harvesting expense, reflects the
decreasing cost incurred in the production cycle for the crop
that is--
``(i) harvested;
``(ii) planted but not harvested; and
``(iii) prevented from being planted because of
drought, flood, or other natural disaster (as determined
by the Secretary); and
``(B) in the case of a crop that is not produced with a
significant and variable harvesting expense, is determined by
the Corporation.
``(e) Yield Determinations.--
``(1) Establishment.--The Corporation shall establish farm yields
for purposes of providing noninsured crop disaster assistance under this
section.
``(2) Actual production history.--The Corporation shall determine
yield coverage using the actual production history of the producer over
a period of not less than the 4 previous consecutive crop years and not
more than 10 consecutive crop years. Subject to paragraph (3), the yield
for the year in which noninsured crop disaster assistance is sought
shall be equal to the average of the actual production history of the
producer during the period considered.
``(3) Assignment of yield.--If a producer does not submit adequate
documentation of production history to determine a crop yield under
paragraph (2), the Corporation shall assign to the producer a yield
equal to not less than 65 percent of the transitional yield of the
producer (adjusted to reflect actual production reflected in the records
acceptable to the Corporation for continuous years), as specified in
regulations issued by the Corporation based on production history
requirements.
``(4) Prohibition on assigned yields in certain counties.--
``(A) In general.--
``(i) Documentation.--If sufficient data are
available to demonstrate that the acreage of a crop in a
county for the crop year has increased by more than 100
percent over any year in the preceding 7 crop years or,
if data are not available, if the acreage of the crop in
the county has increased significantly from the previous
crop years, a producer must provide such detailed
documentation of production costs, acres planted, and
yield for the crop year for which benefits are being
claimed as is required by the Corporation. If the
Corporation determines that the documentation provided
is not sufficient, the Corporation may require
documenting proof that the crop, had the crop been
harvested, could have been marketed at a reasonable
price.
``(ii) Prohibition.--Except as provided in
subparagraph (B), a producer who produces a crop on a
farm located in a county described in clause (i) may not
obtain an assigned yield.
``(B) Exception.--A crop or a producer shall not be subject
to this subsection if--
``(i) the planted acreage of the producer for the
crop has been inspected by a third party acceptable to
the Secretary; or
``(ii)(I) the County Executive Director and the
State Executive Director recommend an exemption from the
requirement to the Deputy Administrator for State and
County Operations of the Agricultural Stabilization and
Conservation Service; and
``(II) the Deputy Administrator approves the
recommendation.
``(5) Limitation on receipt of subsequent assigned yield.--A
producer who receives an assigned yield for the current year of a
natural disaster because required production records were not submitted
to the local office of the Department shall not be eligible for an
assigned yield for the year of the next natural disaster unless the
required production records of the previous 1 or more years (as
applicable) are provided to the local office.
``(6) Yield variations due to different farming practices.--The
Corporation shall ensure that noninsured crop disaster assistance
accurately reflects significant yield variations due to different
farming practices, such as between irrigated and nonirrigated acreage.
``(f) Contract Payments.--A producer who has received a guaranteed payment
for production, as opposed to delivery, of a crop pursuant to a contract shall
have the production of the producer adjusted upward by the amount of the
production equal to the amount of the contract payment received.
``(g) Payment of Losses.--Payments for noninsured crop disaster assistance
losses under this section shall be made from the insurance fund established
under section 516. The losses shall not be included in calculating the premiums
charged to producers for insurance under section 508.
``(h) Exclusions.--Noninsured crop disaster assistance under this section
shall not cover losses due to--
``(A) the neglect or malfeasance of the producer;
``(B) 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
``(C) the failure of the producer to follow good farming practices,
as determined by the Corporation.''.
SEC. 112. PAYMENT AND INCOME LIMITATIONS.
Section 519 (7 U.S.C. 1519) (as amended by section 111) is further amended
by adding at the end the following new subsection:
``(h) Payment and Income Limitations.--
``(1) Definitions.--As used in this subsection:
``(A) Person.--The term `person' has the meaning provided
the term in regulations issued by the Secretary. The regulations
shall conform, to the extent practicable, to the regulations
defining the term `person' issued under section 1001 of the Food
Security Act of 1985 (7 U.S.C. 1308).
``(B) Qualifying gross revenues.--The term `qualifying gross
revenues' means--
``(i) if a majority of the gross revenue of the
person is received from farming, ranching, and forestry
operations, the gross revenue from the farming,
ranching, and forestry operations of the person; and
``(ii) if less than a majority of the gross revenue
of the person is received from farming, ranching, and
forestry operations, the gross revenue of the person
from all sources.
``(2) Payment limitation.--The total amount of payments that a
person shall be entitled to receive annually under this title may not
exceed $100,000.
``(3) Limitation on multiple benefits for same loss.--If a producer
who is eligible to receive benefits under catastrophic risk protection
under section 508(b) or noninsured crop disaster assistance under this
section is also eligible to receive assistance for the same loss under
any other program administered by the Secretary, the producer shall be
required to elect whether to receive benefits under this title or under
the other program, but not both. A producer who purchases additional
coverage under section 508(c) may also receive assistance for the same
loss under other programs administered by the Secretary, except that the
amount received for the loss under the additional coverage together with
the amount received under the other programs may not exceed the amount
of the actual loss of the producer.
``(4) Income limitation.--A person who has qualifying gross revenues
in excess of the amount specified in section 2266(a) of the Food,
Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 1421 note)
(as in effect on November 28, 1990) during the taxable year (as
determined by the Secretary) shall not be eligible to receive any
noninsured assistance payment under this section.
``(5) Regulations.--The Secretary shall issue regulations
prescribing such rules as the Secretary determines necessary to ensure a
fair and equitable application of section 1001 of the Food Security Act
of 1985 (7 U.S.C. 1308), the general payment limitation regulations of
the Secretary, and the limitations established under this subsection.''.
SEC. 113. PRODUCER ELIGIBILITY.
Section 520 (7 U.S.C. 1520) is amended to read as follows:
``SEC. 520. PRODUCER ELIGIBILITY.
``Except as otherwise provided in this title, a producer shall not be denied
insurance under this title if--
``(1) for purposes of catastrophic risk protection coverage, the
producer is a `person' (as defined by the Secretary); and
``(2) for purposes of any other plan of insurance, the producer is
18 years of age and has a bona fide insurable interest in a crop as an
owner-operator, landlord, tenant, or sharecropper.''.
SEC. 114. INELIGIBILITY FOR CATASTROPHIC RISK AND NONINSURED ASSISTANCE
PAYMENTS.
The Act (7 U.S.C. 1501 et seq.) is amended by adding at the end the
following new section:
``SEC. 521. INELIGIBILITY FOR CATASTROPHIC RISK AND NONINSURED ASSISTANCE
PAYMENTS.
``If the Secretary determines that a person has knowingly adopted a material
scheme or device to obtain catastrophic risk, additional coverage, or noninsured
assistance benefits under this title to which the person is not entitled, has
evaded this title, or has acted with the purposes of evading this title, the
person shall be ineligible to receive all benefits applicable to the crop year
for which the scheme or device was adopted. The authority provided by this
section shall be in addition to, and shall not supplant, the authority provided
by section 506(n).''.
SEC. 115. ELIMINATION OF GENDER REFERENCES.
(a) Management of Corporation.--Section 505 (7 U.S.C. 1505) is amended--
(1) in subsection (a), by striking the third sentence and inserting
``The Board shall be appointed by, and hold office at the pleasure of,
the Secretary. The Secretary shall not be a member of the Board.''; and
(2) in subsection (d)--
(A) by striking ``upon him''; and
(B) by striking ``He shall be appointed by,'' and inserting
``The manager shall be appointed by,''.
(b) Personnel.--Section 507 (7 U.S.C. 1507) is amended--
(1) in subsection (a), by striking ``as he may determine: Provided,
That'' and inserting ``as the Secretary may determine appropriate.
However,''; and
(2) in subsection (d), by striking ``as he may request'' and
inserting ``that the Secretary requests''.
(c) Indemnities Exempt From Levy.--Section 509 (7 U.S.C. 1509) is amended by
striking ``or his estate'' and inserting ``or the estate of the insured''.
SEC. 116. PREVENTED PLANTING.
(a) In General.--Effective for the 1994 crop year, a producer described in
subsection (b) shall receive compensation under the prevented planting coverage
policy provision described in subsection (b)(1) by--
(1) obtaining from the Secretary of Agriculture the applicable
amount that is payable under the conserving use program described in
subsection (b)(4); and
(2) obtaining from the Federal Crop Insurance Corporation the amount
that is equal to the difference between--
(A) the amount that is payable under the conserving use
program; and
(B) the amount that is payable under the prevented planting
coverage policy.
(b) Eligible Producers.--Subsection (a) shall apply to a producer who--
(1) purchased a prevented planting policy for the 1994 crop year
from the Federal Crop Insurance Corporation prior to the spring sales
closing date for the 1994 crop year;
(2) is unable to plant a crop due to major, widespread flooding in
the Midwest, or excessive ground moisture, that occurred prior to the
spring sales closing date for the 1994 crop year;
(3) had a reasonable expectation of planting a crop on the prevented
planting acreage for the 1994 crop year; and
(4) participates in a conserving use program established for the
1994 crop of wheat, feed grains, upland cotton, or rice established
under section 107B(c)(1)(E), 105B(c)(1)(E), 103B(c)(1)(D), or
101B(c)(1)(D), respectively, of the Agricultural Act of 1949 (7 U.S.C.
1445b-3a(c)(1)(E), 1444f(c)(1)(E), 1444-2(c)(1)(D), or 1441-2(c)(1)(D)).
(c) Oilseed Prevented Planting Payments.--
(1) In general.--Effective for the 1994 crop year, a producer of a
crop of oilseeds (as defined in section 205(a) of the Agricultural Act
of 1949 (7 U.S.C. 1446f(a))) shall receive a prevented planting payment
for the crop if the requirements of paragraphs (1), (2), and (3) of
subsection (b) are satisfied.
(2) Source of payment.--The total amount of payments required under
this subsection shall be made by the Federal Crop Insurance Corporation.
(d) Payment.--A payment under this section may not be made before October 1,
1994.
SEC. 117. REPORT ON IMPROVING DISSEMINATION OF CROP INSURANCE INFORMATION.
Not later than 180 days after the date of enactment of this Act and at the
end of each of the 2 1-year periods thereafter, the Federal Crop Insurance
Corporation shall submit a report to Congress containing a plan to implement a
sound program for producer education regarding the crop insurance program and
for the dissemination of crop insurance information to producers, as required by
section 508(a)(5) of the Federal Crop Insurance Act (as amended by section 106).
SEC. 118. CROP INSURANCE PROVIDER EVALUATION.
(a) In General.--The Comptroller General of the United States and the
Federal Crop Insurance Corporation (referred to in this section as the
``Corporation'') shall jointly evaluate the financial arrangement between the
Corporation and approved insurance providers to determine the quality, costs,
and efficiencies of providing the benefits of multiple peril crop insurance to
producers of agricultural commodities covered under the Federal Crop Insurance
Act (7 U.S.C. 1501 et seq.).
(b) Collection of Information and Proposals.--The Corporation shall require
private insurance providers and agents to supply, and the private insurance
providers and agents shall supply, records and information necessary to make the
determinations and evaluations required under this section. The Corporation
shall solicit from the approved insurance providers and agents proposals for
modifying or altering the requirements, regulations, procedures, and processes
related to implementing the Federal Crop Insurance Act to reduce the operating
and administrative costs of the providers and agents.
(c) Initial Report.--Not later than 180 days after receipt of information
and cost-reduction proposals under subsection (b), the Corporation shall
evaluate the information and proposals obtained and report the results of the
evaluation to the Committee on Agriculture of the House of Representatives and
the Committee on Agriculture, Nutrition, and Forestry of the Senate.
(d) Final Report.--Not later than 2 years after the date of enactment of
this Act, the Comptroller General and the Corporation shall submit a final
report that provides the evaluation required under subsection (a) to the
Committee on Agriculture of the House of Representatives and the Committee on
Agriculture, Nutrition, and Forestry of the Senate. In making the evaluation,
the Comptroller General and the Corporation shall--
(1) consider the changes made by the Corporation in response to
increased program participation resulting from the enactment of this
Act;
(2) include an evaluation and opinion of the accuracy and
reasonableness of--
(A) the average actual costs for approved insurance
providers to deliver multiple peril crop insurance;
(B) the cost per policy of complying with the requirements,
regulations, procedures, and processes of the Federal Crop
Insurance Act;
(C) the cost differences for various provider firm sizes and
any business delivered by the Federal Government;
(D) the adequacy of the standard reimbursement for potential
new providers; and
(E) the identification of any new costs related to the
enactment of this Act not previously identified in the
information reported by the providers;
(3) compare delivery costs of multiple peril crop insurance to other
insurance coverages that the provider may sell and determine the extent,
if any, to which any funds provided to carry out the Federal Crop
Insurance Act are being used to fund any other business enterprise
operated by the provider;
(4)(A) assess alternative methods for reimbursing providers for
reasonable and necessary expenses associated with delivery of multiple
peril crop insurance;
(B) recommend changes under this paragraph that reasonably
demonstrate the need to achieve the greatest operating efficiencies on
the part of the provider and the Corporation has been recognized; and
(C) identify areas for improved operating efficiencies, if any, in
the requirements made by the Corporation for compliance and program
integrity;
(5) assess the potential for alternative forms of reinsurance
arrangements for providers of different firm sizes, taking into
consideration--
(A) the need to achieve a reasonable return on the capital
of the provider compared to other lines of insurance;
(B) the relative risk borne by the provider for the
different lines of insurance;
(C) the availability and price of commercial reinsurance;
and
(D) any additional costs that may be incurred by the Federal
Government in carrying out the Federal Crop Insurance Act; and
(6) include an analysis of the effect of the current or proposed
reinsurance arrangements on providers having different business levels.
(e) Information.--
(1) Privacy.--In conducting the evaluation required by this section,
the Comptroller General and the Corporation shall maintain the privacy
of proprietary information.
(2) Subpoenas.--The Comptroller General shall have the power to
subpoena information relevant to the evaluation required by this section
from any private insurance provider. The Comptroller General shall allow
the Corporation access to the information subpoenaed taking into
consideration the necessity of preserving the privacy of proprietary
information.
SEC. 119. CONFORMING AMENDMENTS.
(a) Price Support Programs.--
(1) In general.--Title IV of the Agricultural Act of 1949 (7 U.S.C.
1421 et seq.) is amended by adding at the end the following new section:
``SEC. 427. CROP INSURANCE REQUIREMENT.
``As a condition of receiving any benefit (including payments) under title I
or II for each of the 1995 and subsequent crops of tobacco, rice, extra long
staple cotton, upland cotton, feed grains, wheat, peanuts, oilseeds, and sugar,
a producer must obtain at least catastrophic risk protection insurance coverage
under section 508 of the Federal Crop Insurance Act (7 U.S.C. 1508) for the crop
and crop year for which the benefit is sought, if the coverage is offered by the
Corporation.''.
(2) Rice.--Section 101B(c) of such Act (7 U.S.C. 1441-2(c)) is
amended--
(A) in paragraph (1), by striking subparagraph (F); and
(B) by striking paragraph (2) and inserting the following
new paragraph:
``(2) Crop insurance requirement.--A producer shall obtain
catastrophic risk protection insurance coverage in accordance with
section 427.''.
(3) Upland cotton.--Section 103B(c) of such Act (7 U.S.C. 1444-2(c))
is amended--
(A) in paragraph (1), by striking subparagraph (F); and
(B) by striking paragraph (2) and inserting the following
new paragraph:
``(2) Crop insurance requirement.--A producer shall obtain
catastrophic risk protection insurance coverage in accordance with
section 427.''.
(4) Feed grains.--Section 105B(c) of such Act (7 U.S.C. 1444f(c)) is
amended--
(A) in paragraph (1), by striking subparagraph (G); and
(B) by striking paragraph (2) and inserting the following
new paragraph:
``(2) Crop insurance requirement.--A producer shall obtain
catastrophic risk protection insurance coverage in accordance with
section 427.''.
(5) Wheat.--Section 107B(c) of such Act (7 U.S.C. 1445b-3a(c)) is
amended--
(A) in paragraph (1), by striking subparagraph (G); and
(B) by striking paragraph (2) and inserting the following
new paragraph:
``(2) Crop insurance requirement.--A producer shall obtain
catastrophic risk protection insurance coverage in accordance with
section 427.''.
(6) Disaster payments.--Section 208 of such Act (7 U.S.C. 1446i) is
repealed.
(b) Farmers Home Administration Programs.--The Consolidated Farm and Rural
Development Act (7 U.S.C. 1921 et seq.) is amended by adding at the end the
following new section:
``SEC. 371. CROP INSURANCE REQUIREMENT.
``(a) In General.--As a condition of obtaining any benefit (including a
direct loan, loan guarantee, or payment) described in subsection (b), a borrower
must obtain at least catastrophic risk protection insurance coverage under
section 508 of the Federal Crop Insurance Act (7 U.S.C. 1508) for the crop and
crop year for which the benefit is sought, if the coverage is offered by the
Corporation.
``(b) Applicable Benefits.--Subsection (a) shall apply to--
``(1) a farm ownership loan (FO) under section 303;
``(2) an operating loan (OL) under section 312; and
``(3) an emergency loan (EM) under section 321.''.
(c) Disaster Assistance.--Subtitle B of title XXII of the Food, Agriculture,
Conservation, and Trade Act of 1990 (7 U.S.C. 1421 note) is amended by striking
chapter 3.
(d) Emergency Appropriations.--
(1) In general.--Effective January 1, 1995, section 251(b)(2)(D)(i)
of the Balanced Budget and Emergency Deficit Control Act of 1985 (2
U.S.C. 901(b)(2)(D)(i)) is amended by adding at the end the following
new sentence: ``This subparagraph shall not apply to appropriations to
cover agricultural crop disaster assistance.''.
(2) Emergency legislation.--Effective January 1, 1995, section
252(e) of such Act (2 U.S.C. 902(e)) is amended by adding at the end the
following new sentence: ``This subsection shall not apply to direct
spending provisions to cover agricultural crop disaster assistance.''.
(e) False Statements.--Section 1014 of title 18, United States Code, is
amended by inserting ``or a company the Corporation reinsures'' after ``Federal
Crop Insurance Corporation''.
(f) Technical Amendments.--
(1) The first sentence of section 506(d) (7 U.S.C. 1506(d)) is
amended by striking ``508(f)'' and inserting ``508(j)''.
(2) The last sentence of section 507(c) (7 U.S.C. 1507(c)) is
amended by striking ``508(b)'' and inserting ``508(h)''.
(3) Section 518 (7 U.S.C. 1518) is amended by striking ``(k)'' and
inserting ``(m)''.
SEC. 120. EFFECTIVE DATE.
Except as otherwise provided in this title, this title and the amendments
made by this title shall become effective on the date of enactment of this Act
and shall apply to the provision of crop insurance under the Federal Crop
Insurance Act (7 U.S.C. 1501 et seq.) beginning with the 1995 crop year. With
respect to the 1994 crop year, the Federal Crop Insurance Act (as in effect on
the day before the date of enactment of this Act) shall continue to apply.
TITLE II--DEPARTMENT OF AGRICULTURE REORGANIZATION
SEC. 201. SHORT TITLE.
(a) Short Title.--This title may be cited as the ``Department of Agriculture
Reorganization Act of 1994''.
SEC. 202. PURPOSE.
The purpose of this title is to provide the Secretary of Agriculture with
the necessary authority to streamline and reorganize the Department of
Agriculture to achieve greater efficiency, effectiveness, and economies in the
organization and management of the programs and activities carried out by the
Department.
SEC. 203. DEFINITIONS.
Except where the context requires otherwise, for purposes of this title:
(1) Department.--The term ``Department'' means the Department of
Agriculture.
(2) National appeals division.--The term ``National Appeals
Division'' means the National Appeals Division of the Department
established under section 272.
(3) Secretary.--The term ``Secretary'' means the Secretary of
Agriculture.
(4) Function.--The term ``function'' means an administrative,
financial, or regulatory activity of an agency, office, officer, or
employee of the Department.
Subtitle A--General Reorganization Authorities
SEC. 211. TRANSFER OF DEPARTMENT FUNCTIONS TO SECRETARY OF AGRICULTURE.
(a) Transfer of Functions.--Except as provided in subsection (b), there are
transferred to the Secretary of Agriculture all functions of all agencies,
offices, officers, and employees of the Department that are not already vested
in the Secretary on the date of the enactment of this Act.
(b) Exceptions.--Subsection (a) shall not apply to the following functions:
(1) Functions vested by subchapter II of chapter 5 of title 5,
United States Code, in administrative law judges employed by the
Department.
(2) Functions vested by the Inspector General Act of 1978 (5 U.S.C.
App.) in the Inspector General of the Department.
(3) Functions vested by chapter 9 of title 31, United States Code,
in the Chief Financial Officer of the Department.
(4) Functions vested in the corporations of the Department or the
boards of directors and officers of such corporations.
(5) Functions vested in the Alternative Agricultural Research and
Commercialization Board by the Alternative Agricultural Research and
Commercialization Act of 1990 (7 U.S.C. 5901 et seq.).
SEC. 212. AUTHORITY OF SECRETARY TO DELEGATE TRANSFERRED FUNCTIONS.
(a) Delegation of Authority.--
(1) Delegation authorized.--Subject to paragraph (2), the Secretary
may delegate to any agency, office, officer, or employee of the
Department the authority to perform any function transferred to the
Secretary under section 211(a) or any other function vested in the
Secretary as of the date of the enactment of this Act. The authority
provided in the preceding sentence includes the authority to establish,
consolidate, alter, or discontinue any agency, office, or other
administrative unit of the Department.
(2) Condition on authority.--The delegation authority provided by
paragraph (1) shall be subject to--
(A) sections 232, 251(d), 273, and 304 and subsections (a)
and (b)(1) of section 261;
(B) sections 502 and 503 of the Agricultural Trade Act of
1978 (7 U.S.C. 5692 and 5693); and
(C) section 8(b)(5) of the Soil Conservation and Domestic
Allotment Act (16 U.S.C. 590h(b)(5)).
(b) Cost-Benefit Analysis Required for Name Change.--
(1) Analysis required.--Except as provided in paragraph (2), the
Secretary shall conduct a cost-benefit analysis before changing the name
of any agency, office, division, or other unit of the Department to
ensure that the benefits to be derived from changing the name of the
agency, office, division, or other unit outweigh the expense of
executing the name change.
(2) Exception.--Paragraph (1) shall not apply with respect to any
name change required or authorized by this title.
(c) Public Comment on Proposed Reorganization.--To the extent that the
implementation of the authority provided to the Secretary by this title to
reorganize the Department involves the creation of new agencies or offices
within the Department or the delegation of major functions or major groups of
functions to any agency or office of the Department (or the officers or
employees of such agency or office), the Secretary shall, to the extent
considered practicable by the Secretary--
(1) give appropriate advance public notice of the proposed
reorganization action or delegation; and
(2) afford appropriate opportunity for interested parties to comment
on the proposed reorganization action or delegation.
(d) Interagency Transfer of Records, Property, Personnel, and Funds.--
(1) Related transfers.--Subject to paragraph (2), as part of the
transfer or delegation of a function of the Department made or
authorized by this title, the Secretary may transfer within the
Department--
(A) any of the records, property, or personnel affected by
the transfer or delegation of the function; and
(B) unexpended balances (available or to be made available
for use in connection with the transferred or delegated
function) of appropriations, allocations, or other funds of the
Department.
(2) Applicable law relating to funds transfer.--Section 1531 of
title 31, United States Code, shall apply to any transfer of funds under
paragraph (1).
(e) Exhaustion of Administrative Appeals.--Notwithstanding any other
provision of law, a person shall exhaust all administrative appeal procedures
established by the Secretary or required by law before the person may bring an
action in a court of competent jurisdiction against--
(1) the Secretary;
(2) the Department; or
(3) an agency, office, officer, or employee of the Department.
SEC. 213. REDUCTIONS IN NUMBER OF DEPARTMENT PERSONNEL.
(a) Definitions.--For purposes of this section:
(1) Headquarters offices.--The term ``headquarters offices'', with
respect to agencies, offices, or other administrative units of the
Department, means the offices, functions, and employee positions that
are located or performed--
(A) in Washington, District of Columbia; or
(B) in such other locations as are identified by the
Secretary for purposes of this section.
(2) Field structure.--The term ``field structure'' means the
offices, functions, and employee positions of all agencies, offices, or
other administrative units of the Department, other than the
headquarters offices, except that the term does not include State,
county, or area committees established under section 8(b)(5) of the Soil
Conservation and Domestic Allotment Act (16 U.S.C. 590h(b)(5)). The term
includes the physical and geographic locations of such agencies,
offices, or other administrative units.
(b) Number of Reductions Required.--The Secretary shall achieve Federal
employee reductions of at least 7,500 staff years within the Department by the
end of fiscal year 1999. Reductions in the number of full-time equivalent
positions within the Department achieved under section 5 of the Federal
Workforce Restructuring Act of 1994 (Public Law 103-226; 108 Stat. 115; 5 U.S.C.
3101 note) shall be counted toward the employee reductions required under this
section.
(c) Emphasis on Headquarters Offices Reductions.--In achieving the employee
reductions required by subsection (b), the Secretary shall pursue a goal so that
the percentage of the total number of employee staff years reduced in
headquarters offices is at least twice the percentage of the total number of
employee staff years reduced in the field structure.
(d) Schedule.--The personnel reductions in headquarters offices and in the
field structure should be accomplished concurrently in a manner determined by
the Secretary.
SEC. 214. CONSOLIDATION OF HEADQUARTERS OFFICES.
Subject to the availability of appropriated funds for this purpose, the
Secretary shall develop and carry out a plan to consolidate offices located in
Washington, District of Columbia, of agencies, offices, and other administrative
units of the Department.
SEC. 215. COMBINATION OF FIELD OFFICES.
(a) Combination of Offices Required.--Where practicable and to the extent
consistent with efficient, effective, and improved service, the Secretary shall
combine field offices of agencies within the Department to reduce personnel and
duplicative overhead expenses.
(b) Joint Use of Resources and Offices Required.--When two or more agencies
of the Department share a common field office, the Secretary shall require the
agencies to jointly use office space, equipment, office supplies, administrative
personnel, and clerical personnel associated with that field office.
SEC. 216. IMPROVEMENT OF INFORMATION SHARING.
Whenever the Secretary procures or uses computer systems, as may be provided
for in advance in appropriations Acts, the Secretary shall do so in a manner
that enhances efficiency, productivity, and client services and is consistent
with the goal of promoting computer information sharing among agencies of the
Department.
SEC. 217. REPORTS BY THE SECRETARY.
(a) In General.--Subject to subsection (b), notwithstanding any other
provision of law, the Secretary may, but shall not be required to, prepare and
submit any report solely to the Committee on Agriculture of the House of
Representatives and the Committee on Agriculture, Nutrition, and Forestry of the
Senate.
(b) Limitation.--For each fiscal year, the Secretary may not prepare and
submit more than 30 reports referred to in subsection (a).
(c) Selection of Reports.--In consultation with the Committee on Agriculture
of the House of Representatives and the Committee on Agriculture, Nutrition, and
Forestry of the Senate, the Secretary shall determine which reports, if any, the
Secretary will prepare and submit in accordance with subsection (b).
SEC. 218. ASSISTANT SECRETARIES OF AGRICULTURE.
(a) Authorization.--The Secretary is authorized to establish in the
Department the positions of--
(1) Assistant Secretary of Agriculture for Congressional Relations;
(2) Assistant Secretary of Agriculture for Administration; and
(3) Assistant Secretary of Agriculture for Marketing and Regulatory
Programs.
(b) Confirmation Required.--If the Secretary establishes any position of
Assistant Secretary authorized under subsection (a), the Assistant Secretary
shall be appointed by the President, by and with the advice and consent of the
Senate.
(c) Succession.--Any official who is serving as Assistant Secretary of
Agriculture for Administration or Assistant Secretary of Agriculture for
Congressional Relations on the date of the enactment of this Act and who was
appointed as such Assistant Secretary by the President, by and with the advice
and consent of the Senate, shall not be required to be reappointed under
subsection (b) to the successor position authorized under subsection (a) if the
Secretary establishes the position, and the official occupies the new position,
within 180 days after the date of the enactment of this Act (or such later date
set by the Secretary if litigation delays rapid succession).
(d) Executive Schedule.--Section 5315 of title 5, United States Code, is
amended by striking ``Assistant Secretaries of Agriculture (7).'' and inserting
``Assistant Secretaries of Agriculture (3).''.
(e) Repeal of Superseded Provisions Regarding Assistant Secretaries.--The
following provisions of law are repealed:
(1) Section 2 of Reorganization Plan No. 2 of 1953 (5 U.S.C. App; 7
U.S.C. 2201 note).
(2) Section 2 of the Act entitled ``An Act to enlarge the powers and
duties of the Department of Agriculture and to create an Executive
Department to be known as the Department of Agriculture.'', approved
February 9, 1889 (7 U.S.C. 2212).
(3) The first paragraph designated ``Office of the Secretary:''
under the heading ``DEPARTMENT OF AGRICULTURE'' of the Act entitled ``An
Act making appropriations for the Department of Agriculture for the
fiscal year ending June thirtieth, nineteen hundred and seven.'',
approved June 30, 1906 (34 Stat. 670; 7 U.S.C. 2212).
(4) Section 604(a) of the Rural Development Act of 1972 (7 U.S.C.
2212a).
(5) Section 2 of Public Law 94-561 (7 U.S.C. 2212b).
(6) Section 8(a) of Public Law 97-325 (7 U.S.C. 2212c).
(7) Section 1413(d) of the National Agricultural Research,
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3128(d)).
SEC. 219. PAY INCREASES PROHIBITED.
The compensation of any officer or employee of the Department on the date of
the enactment of this Act shall not be increased as a result of the enactment of
this title.
Subtitle B--Farm and Foreign Agricultural Services
SEC. 225. UNDER SECRETARY OF AGRICULTURE FOR FARM AND FOREIGN AGRICULTURAL
SERVICES.
(a) Authorization.--The Secretary is authorized to establish in the
Department the position of Under Secretary of Agriculture for Farm and Foreign
Agricultural Services.
(b) Confirmation Required.--If the Secretary establishes the position of
Under Secretary of Agriculture for Farm and Foreign Agricultural Services
authorized under subsection (a), the Under Secretary shall be appointed by the
President, by and with the advice and consent of the Senate.
(c) Functions of Under Secretary.--
(1) Principal functions.--Upon establishment, the Secretary shall
delegate to the Under Secretary of Agriculture for Farm and Foreign
Agricultural Services those functions under the jurisdiction of the
Department that are related to farm and foreign agricultural services.
(2) Additional functions.--The Under Secretary of Agriculture for
Farm and Foreign Agricultural Services shall perform such other
functions as may be required by law or prescribed by the Secretary.
(d) Succession.--Any official who is serving as Under Secretary of
Agriculture for International Affairs and Commodity Programs on the date of the
enactment of this Act and who was appointed by the President, by and with the
advice and consent of the Senate, shall not be required to be reappointed under
subsection (b) to the successor position authorized under subsection (a) if the
Secretary establishes the position, and the official occupies the new position,
within 180 days after the date of the enactment of this Act (or such later date
set by the Secretary if litigation delays rapid succession).
(e) Conforming Amendments.--
(1) Existing position.--Section 501 of the Agricultural Trade Act of
1978 (7 U.S.C. 5691), relating to the Under Secretary of Agriculture for
International Affairs and Commodity Programs, is repealed.
(2) Executive schedule.--Section 5314 of title 5, United States
Code, is amended by striking ``Under Secretary of Agriculture for
International Affairs and Commodity Programs.'' and inserting ``Under
Secretary of Agriculture for Farm and Foreign Agricultural Services.''.
SEC. 226. CONSOLIDATED FARM SERVICE AGENCY.
(a) Establishment.--The Secretary is authorized to establish and maintain in
the Department a Consolidated Farm Service Agency.
(b) Functions of Consolidated Farm Service Agency.--If the Secretary
establishes the Consolidated Farm Service Agency under subsection (a), the
Secretary is authorized to assign to the Agency jurisdiction over the following
functions:
(1) Agricultural price and income support programs, production
adjustment programs, and related programs.
(2) General supervision of the Federal Crop Insurance Corporation.
(3) Agricultural credit programs assigned before the date of the
enactment of this Act by law to the Farmers Home Administration
(including farm ownership and operating, emergency, and disaster loan
programs) and other lending programs for agricultural producers and
others engaged in the production of agricultural commodities.
(4) Subchapter B of chapter 1 of subtitle D of title XII of the Food
Security Act of 1985 (16 U.S.C. 3831-3836) and the agricultural
conservation program under the Soil Conservation and Domestic Allotment
Act (16 U.S.C. 590g et seq.).
(5) Such other functions as the Secretary considers appropriate,
except for those programs assigned by the Secretary to the Natural
Resources Conservation Service or another agency of the Department under
section 246(b).
(c) Special Concurrence Requirements for Certain Functions.--In carrying out
the programs specified in subsection (b)(4), the Secretary shall--
(1) acting on the recommendations of the Consolidated Farm Service
Agency, with the concurrence of the Natural Resources Conservation
Service, issue regulations to carry out such programs;
(2) ensure that the Consolidated Farm Service Agency, in
establishing policies, priorities, and guidelines for such programs,
does so with the concurrence of the Natural Resources Conservation
Service at national, State, and local levels;
(3) ensure that, in reaching such concurrence at the local level,
the Natural Resources Conservation Service works in cooperation with
Soil and Water Conservation Districts or similar organizations
established under State law;
(4) ensure that officials of county and area committees established
under section 8(b)(5) of the Soil Conservation and Domestic Allotment
Act (16 U.S.C. 590h(b)(5)) meet annually with officials of such
Districts or similar organizations to consider local conservation
priorities and guidelines; and
(5) take steps to ensure that the concurrence process does not
interfere with the effective delivery of such programs.
(d) Jurisdiction Over Conservation Program Appeals.--
(1) In general.--Until such time as an adverse decision described in
this paragraph is referred to the National Appeals Division for
consideration, the Consolidated Farm Service Agency shall have initial
jurisdiction over any administrative appeal resulting from an adverse
decision made under title XII of the Food Security Act of 1985 (16
U.S.C. 3801 et seq.), including an adverse decision involving technical
determinations made by the Natural Resources Conservation Service.
(2) Treatment of technical determination.--With respect to
administrative appeals involving a technical determination made by the
Natural Resources Conservation Service, the Consolidated Farm Service
Agency, by rule with the concurrence of the Natural Resources
Conservation Service, shall establish procedures for obtaining review by
the Natural Resources Conservation Service of the technical
determinations involved. Such rules shall ensure that technical criteria
established by the Natural Resources Conservation Service shall be used
by the Consolidated Farm Service Agency as the basis for any decisions
regarding technical determinations. If no review is requested, the
technical determination of the Natural Resources Conservation Service
shall be the technical basis for any decision rendered by a county or
area committee established under section 8(b)(5) of the Soil
Conservation and Domestic Allotment Act (16 U.S.C. 590h(b)(5)). If the
committee requests a review by the Natural Resources Conservation
Service of a wetlands determination of the Service, the Consolidated
Farm Service Agency shall consult with other Federal agencies whenever
required by law or under a memorandum of agreement in existence on the
date of the enactment of this Act.
(3) Reinstatement of program benefits.--Rules issued to carry out
this subsection shall provide for the prompt reinstatement of benefits
to a producer who is determined in an administrative appeal to meet the
requirements of title XII of the Food Security Act of 1985 applicable to
the producer.
(e) Use of Federal and Non-Federal Employees.--
(1) Use authorized.--In the implementation of programs and
activities assigned to the Consolidated Farm Service Agency, the
Secretary may use interchangeably in local offices of the Agency both
Federal employees of the Department and non-Federal employees of county
and area committees established under section 8(b)(5) of the Soil
Conservation and Domestic Allotment Act (16 U.S.C. 590h(b)(5)).
(2) Exception.--Notwithstanding paragraph (1), no personnel action
(as defined in section 2302(a)(2)(A) of title 5, United States Code) may
be taken with respect to a Federal employee unless such action is taken
by another Federal employee.
(f) Collocation.--To the maximum extent practicable, the Secretary shall
collocate county offices of the Consolidated Farm Service Agency with county
offices of the Natural Resources Conservation Service in order to--
(1) maximize savings from shared equipment, office space, and
administrative support;
(2) simplify paperwork and regulatory requirements;
(3) provide improved services to agricultural producers and
landowners affected by programs administered by the Agency and the
Service; and
(4) achieve computer compatibility between the Agency and the
Service to maximize efficiency and savings.
(g) Savings Provision.--For purposes of subsections (c) through (f) of this
section:
(1) A reference to the ``Consolidated Farm Service Agency'' includes
any other office, agency, or administrative unit of the Department
assigned the functions authorized for the Consolidated Farm Service
Agency under this section.
(2) A reference to the ``Natural Resources Conservation Service''
includes any other office, agency, or administrative unit of the
Department assigned the functions authorized for the Natural Resources
Conservation Service under section 246(b).
(h) Conforming Amendment.--Section 331(a) of the Consolidated Farm and Rural
Development Act (7 U.S.C. 1981(a)) is amended by striking ``assets to the
Farmers Home Administration'' and all that follows through the period at the end
of the subsection and inserting ``assets to such officers or agencies of the
Department of Agriculture as the Secretary considers appropriate.''.
SEC. 227. STATE, COUNTY, AND AREA COMMITTEES.
(a) Committees Under the Soil Conservation and Domestic Allotment Act.--
Section 8(b) of the Soil Conservation and Domestic Allotment Act (16 U.S.C.
590h(b)) is amended--
(1) by inserting ``(1)'' after ``(b)'';
(2) by designating the second through eighth undesignated paragraphs
as paragraphs (2) through (8), respectively; and
(3) by striking paragraph (5) (as so designated) and inserting the
following new paragraph:
``(5) State, county, and area committees.--
``(A) Appointment of state committees.--The Secretary shall appoint
in each State a State committee composed of not fewer than 3 nor more
than 5 members who are fairly representative of the farmers in the
State. The members of a State committee shall serve at the pleasure of
the Secretary for such term as the Secretary may establish.
``(B) Establishment of county, area, or local committees.--(i) In
each county or area in which activities are carried out under this
section, the Secretary shall establish a county or area committee.
``(ii) Any such committee shall consist of not fewer than 3 nor more
than 5 members who are fairly representative of the agricultural
producers in the county or area and who shall be elected by the
agricultural producers in such county or area under such procedures as
the Secretary may prescribe.
``(iii) The Secretary may designate local administrative areas
within the county or larger area covered by a committee established
under clause (i). Only agricultural producers within a local
administrative area who participate or cooperate in programs
administered within their area shall be eligible for nomination and
election to the local committee for that area, under such regulations as
the Secretary may prescribe.
``(iv) The Secretary shall solicit and accept nominations from
organizations representing the interests of socially disadvantaged
groups (as defined in section 355(e)(1) of the Consolidated Farm and
Rural Development Act (7 U.S.C. 2003(e)(1)).
``(v) Members of each county, area, or local committee shall serve
for terms not to exceed 3 years.
``(C) Termination or combination of committees.--The Secretary may
not terminate a county or area committee or combine or consolidate two
or more county or area committees unless--
``(i) the Secretary first notifies the committee or
committees involved of the proposed action; and
``(ii) the State committee of the State in which the
affected counties are located approves of such action in a vote
taken after the end of the 60-day period beginning on the date
the notification is received.
``(D) Use of committees.--The Secretary shall use the services of
such committees in carrying out programs under this section and the
agricultural credit programs under the Consolidated Farm and Rural
Development Act (7 U.S.C. 1921 et seq.) and in considering
administrative appeals as provided by section 226(d) of the Department
of Agriculture Reorganization Act of 1994. The Secretary may use the
services of such committees in carrying out programs under other
authorities administered by the Secretary .
``(E) Regulations.--The Secretary shall issue such regulations as
the Secretary considers necessary relating to the selection and exercise
of the functions of the respective committees, and to the administration
through such committees of the programs described in subparagraph (D).
Pursuant to such regulations, each county and area committee shall
select an executive director for the area or county. Such selection
shall be made in the same manner as provided for the selection of the
county executive director under section 7.21(b)(2) of title 7, Code of
Federal Regulations, as in effect on January 1, 1994. Regulations
governing payments or grants under this subsection shall be as simple
and direct as possible, and, whenever practicable, they shall be
classified on the following two bases:
``(i) Soil-depleting practices.
``(ii) Soil-building practices.
``(F) Mandatory duties of secretary.--In carrying out this section,
the Secretary shall--
``(i) insofar as practicable, protect the interests of
tenants and sharecroppers;
``(ii) accord such encouragement to producer-owned and
producer-controlled cooperative associations as will be in
harmony with the policy toward cooperative associations set
forth in Federal laws and as will tend to promote efficient
methods of marketing and distribution;
``(iii) in every practicable manner, protect the interests
of small producers; and
``(iv) in every practical way, encourage and provide for
soil-conserving and soil-rebuilding practices.
``(G) Discretionary authorities of secretary.--In carrying out this
section, the Secretary may use other approved agencies.
``(H) Limitations.--In carrying out this section, the Secretary
shall not have the authority to acquire any land or any right or
interest in land.''.
(b) Elimination of FmHA County Committees.--The Consolidated Farm and Rural
Development Act (7 U.S.C. 1921 et seq.) is amended--
(1) by striking section 332 (7 U.S.C. 1982); and
(2) in section 333 (7 U.S.C. 1983)--
(A) by striking paragraph (2); and
(B) redesignating paragraphs (3), (4), and (5) as paragraphs
(2), (3), and (4), respectively.
Subtitle C--Rural Economic and Community Development
SEC. 231. UNDER SECRETARY OF AGRICULTURE FOR RURAL ECONOMIC AND COMMUNITY
DEVELOPMENT.
(a) Authorization.--The Secretary is authorized to establish in the
Department the position of Under Secretary of Agriculture for Rural Economic and
Community Development.
(b) Confirmation Required.--If the Secretary establishes the position of
Under Secretary of Agriculture for Rural Economic and Community Development
authorized under subsection (a), the Under Secretary shall be appointed by the
President, by and with the advice and consent of the Senate.
(c) Functions of Under Secretary.--
(1) Principal functions.--Upon establishment, the Secretary shall
delegate to the Under Secretary of Agriculture for Rural Economic and
Community Development those functions under the jurisdiction of the
Department that are related to rural economic and community development.
(2) Additional functions.--The Under Secretary of Agriculture for
Rural Economic and Community Development shall perform such other
functions as may be required by law or prescribed by the Secretary.
(d) Succession.--Any official who is serving as Under Secretary of
Agriculture for Small Community and Rural Development on the date of the
enactment of this Act and who was appointed by the President, by and with the
advice and consent of the Senate, shall not be required to be reappointed under
subsection (b) to the successor position authorized under subsection (a) if the
Secretary establishes the position, and the official occupies the new position,
within 180 days after the date of the enactment of this Act (or such later date
set by the Secretary if litigation delays rapid succession).
(e) Loan Approval Authority.--Approval authority for loans and loan
guarantees in connection with the electric and telephone loan and loan guarantee
programs authorized by the Rural Electrification Act of 1936 (7 U.S.C. 901 et
seq.) shall not be transferred to, or conditioned on review of, a State director
or other employee whose primary duty is not the review and approval of such
loans or the provision of assistance to such borrowers.
(f) Conforming Amendments.--
(1) Existing position.--Section 3 of the Rural Development Policy
Act of 1980 (7 U.S.C. 2211b) is amended by striking subsection (a).
(2) Executive schedule.--Section 5314 of title 5, United States
Code, is amended by striking ``Under Secretary of Agriculture for Small
Community and Rural Development.'' and inserting ``Under Secretary of
Agriculture for Rural Economic and Community Development.''.
(3) Repeal of rural development administration.--Section 364 of the
Consolidated Farm and Rural Development Act (7 U.S.C. 2006f) is
repealed.
SEC. 232. RURAL UTILITIES SERVICE.
(a) Establishment Required.--The Secretary shall establish and maintain
within the Department the Rural Utilities Service and assign to the Service such
functions as the Secretary considers appropriate.
(b) Administrator.--
(1) Appointment.--The Rural Utilities Service shall be headed by an
Administrator who shall be appointed by the President, by and with the
advice and consent of the Senate.
(2) Succession.--Any official who is serving as Administrator of the
Rural Electrification Administration on the date of the enactment of
this Act and who was appointed by the President, by and with the advice
and consent of the Senate--
(A) may be considered to be serving in the successor
position established under paragraph (1); and
(B) shall not be required to be reappointed to that position
by reason of the enactment of this Act.
(3) Executive schedule.--Section 5315 of title 5, United States
Code, is amended by adding at the end the following:
``Administrator, Rural Utilities Service, Department of
Agriculture.''.
(c) Functions.--The Secretary shall carry out through the Rural Utilities
Service the following functions that are under the jurisdiction of the
Department:
(1) Electric and telephone loan programs and water and waste
facility activities authorized by law, including--
(A) the Rural Electrification Act of 1936 (7 U.S.C. 901 et
seq.); and
(B) section 2322 of the Food, Agriculture, Conservation, and
Trade Act of 1990 (7 U.S.C. 1926-1); and
(2) Water and waste facility programs and activities authorized by
law, including--
(A) sections 306, 306A, 306B, and 306C, the provisions of
sections 309 and 309A relating to assets, terms, and conditions
of water and sewer programs, section 310B(b)(2), and the
amendment made by section 342 of the Consolidated Farm and Rural
Development Act (7 U.S.C. 1926, 1926a, 1926b, 1926c, 1929,
1929a, 1932(b)(2), and 1013a); and
(B) section 2324 of the Food, Agriculture, Conservation, and
Trade Act of 1990 (7 U.S.C. 1926 note).
SEC. 233. RURAL HOUSING AND COMMUNITY DEVELOPMENT SERVICE.
(a) Establishment Authorized.--Notwithstanding any other provision of law,
the Secretary is authorized to establish and maintain within the Department the
Rural Housing and Community Development Service and to assign to the Service
such functions as the Secretary considers appropriate.
(b) Functions.--If the Secretary establishes the Rural Housing and Community
Development Service under subsection (a), the Secretary is authorized to assign
to the Service jurisdiction over the following:
(1) Programs and activities under title V of the Housing Act of 1949
(42 U.S.C. 1471 et seq.).
(2) Programs and activities authorized under section 310B(i) of the
Consolidated Farm and Rural Development Act (7 U.S.C. 1932(i)) and
related provisions of law.
(3) Programs and activities that relate to rural community lending
programs, including programs authorized by sections 365 through 369 of
the Consolidated Farm and Rural Development Act (7 U.S.C. 2008-2008d).
SEC. 234. RURAL BUSINESS AND COOPERATIVE DEVELOPMENT SERVICE.
(a) Establishment Authorized.--Notwithstanding any other provision of law,
the Secretary is authorized to establish and maintain within the Department the
Rural Business and Cooperative Development Service and to assign to the Service
such functions as the Secretary considers appropriate.
(b) Functions.--If the Secretary establishes the Rural Business and
Cooperative Development Service under subsection (a), the Secretary is
authorized to assign to the Service jurisdiction over the following:
(1) Section 313 and title V of the Rural Electrification Act of 1936
(7 U.S.C. 940c and 950aa et seq.).
(2) subtitle G of title XVI of the Food, Agriculture, Conservation,
and Trade Act of 1990 (7 U.S.C. 5901 et seq.).
(3) Sections 306(a)(1) and 310B of the Consolidated Farm and Rural
Development Act (7 U.S.C. 1926(a)(1) and 1932).
(4) Section 1323 of the Food Security Act of 1985 (Public Law 99-
198; 7 U.S.C. 1932 note).
(5) The Act of July 2, 1926 (44 Stat. 802, chapter 725; 7 U.S.C. 451
et seq.).
SEC. 235. CONFORMING AMENDMENTS REGARDING RURAL ELECTRIFICATION ADMINISTRATION.
(a) Amendments to Rural Electrification Act of 1936.--The Rural
Electrification Act of 1936 (7 U.S.C. 901 et seq.) is amended--
(1) by striking the first section (7 U.S.C. 901) and inserting the
following:
``SECTION 1. SHORT TITLE.
``This Act may be cited as the `Rural Electrification Act of 1936'.'';
(2) in section 2(a) (7 U.S.C. 902(a)), by striking ``Administrator''
and inserting ``Secretary of Agriculture'';
(3) in section 3(a) (7 U.S.C. 903(a))--
(A) by striking ``Administrator, upon the request and
approval of the Secretary of Agriculture,'' and inserting
``Secretary''; and
(B) by striking ``Administrator appointed pursuant to the
provisions of this Act or from the Administrator of the Rural
Electrification Administration established by Executive Order
Numbered 7037'' and inserting ``Secretary'';
(4) in section 8 (7 U.S.C. 908)--
(A) by striking ``Administrator authorized to be appointed
by this Act'' and inserting ``Secretary''; and
(B) by striking ``Rural Electrification Administration
created by this Act'' and inserting ``Secretary'';
(5) by striking section 11A (7 U.S.C. 911a);
(6) in section 13 (7 U.S.C. 913), by inserting before the period at
the end the following: ``; and the term `Secretary' shall be deemed to
mean the Secretary of Agriculture'';
(7) in sections 206(b)(2), 306A(b), 311, and 405(b)(1)(A) (7 U.S.C.
927(b)(2), 936a(b), 940a, and 945(b)(1)(A)), by striking ``Rural
Electrification Administration'' each place it appears and inserting
``Secretary'';
(8) in sections 305(c)(2)(C)(ii)(II) and 306E(d) (7 U.S.C.
935(c)(2)(C)(ii)(II) and 936e(d)), by striking ``Administrator'' and
inserting ``Secretary'';
(9) in section 403(b) (7 U.S.C. 943(b)), by striking ``Rural
Electrification Administration or of any other agency of the Department
of Agriculture,'' and inserting ``Secretary,'';
(10) in section 404 (7 U.S.C. 944), by striking ``the Administrator
of the Rural Electrification Administration'' and inserting ``the
Secretary shall designate an official of the Department of Agriculture
who'';
(11) in sections 406(c) and 410 (7 U.S.C. 946(c) and 950), by
striking ``Administrator of the Rural Electrification Administration''
each place it appears and inserting ``Secretary'';
(12) in the heading of section 501 (7 U.S.C. 950aa), by striking
``of rea administrator''; and
(13) except as otherwise provided in this subsection, by striking
``Administrator'' each place it appears in such Act and inserting
``Secretary''.
(b) Miscellaneous Amendments.--(1) Section 236(a) of the Disaster Relief Act
of 1970 (7 U.S.C. 912a) is amended by striking ``Rural Electrification
Administration'' and inserting ``Secretary under the Rural Electrification Act
of 1936 (7 U.S.C. 901 et seq.)''.
(2) Section 505 of the Department of Agriculture Organic Act of 1944 (7
U.S.C. 915) is amended--
(A) by striking ``Rural Electrification Administration'' and
inserting ``Secretary of Agriculture''; and
(B) by striking ``its'' and inserting ``the Secretary's''.
(3) Section 401 of the Rural Electrification Act of 1938 (7 U.S.C. 903 note)
is amended in the second paragraph by striking ``Administrator of the Rural
Electrification Administration'' and inserting ``Secretary of Agriculture''.
(4) Chapter 1 of subtitle D of title XXIII of the Food, Agriculture,
Conservation, and Trade Act of 1990 (7 U.S.C. 950aaa et seq.), relating to
Distance Learning and Medical Link Programs, is amended--
(A) in section 2333--
(i) by striking paragraph (1); and
(ii) by redesignating paragraphs (2) through (11) as
paragraphs (1) through (10), respectively;
(B) in section 2334(h)(2), by striking ``section 2333(3)(F)'' and
inserting ``section 2333(2)(F)''; and
(C) by striking ``Administrator'' each place it appears and
inserting ``Secretary''.
(5) Section 306(a)(15) of the Consolidated Farm and Rural Development Act (7
U.S.C. 1926(a)(15)) is amended--
(A) by striking subparagraph (C); and
(B) by redesignating subparagraph (D) as subparagraph (C).
(6) Section 2322(d) of the Food, Agriculture, Conservation, and Trade Act of
1990 (7 U.S.C. 1926-1(d)) is amended--
(A) by striking paragraph (2); and
(B) by redesignating paragraph (3) as paragraph (2).
Subtitle D--Food, Nutrition, and Consumer Services
SEC. 241. UNDER SECRETARY OF AGRICULTURE FOR FOOD, NUTRITION, AND CONSUMER
SERVICES.
(a) Authorization.--The Secretary is authorized to establish in the
Department the position of Under Secretary of Agriculture for Food, Nutrition,
and Consumer Services.
(b) Confirmation Required.--If the Secretary establishes the position of
Under Secretary of Agriculture for Food, Nutrition, and Consumer Services
authorized under subsection (a), the Under Secretary shall be appointed by the
President, by and with the advice and consent of the Senate.
(c) Functions of Under Secretary.--
(1) Principal functions.--Upon establishment, the Secretary shall
delegate to the Under Secretary of Agriculture for Food, Nutrition, and
Consumer Services those functions under the jurisdiction of the
Department that are related to food, nutrition, and consumer services
(except as provided in section 261(b)(1)).
(2) Additional functions.--The Under Secretary of Agriculture for
Food, Nutrition, and Consumer Services shall perform such other
functions as may be required by law or prescribed by the Secretary.
(d) Succession.--Any official who is serving as Assistant Secretary of
Agriculture for Food and Consumer Services on the date of the enactment of this
Act and who was appointed by the President, by and with the advice and consent
of the Senate, shall not be required to be reappointed under subsection (b) to
the successor position authorized under subsection (a) if the Secretary
establishes the position, and the official occupies the new position, within 180
days after the date of the enactment of this Act (or such later date set by the
Secretary if litigation delays rapid succession).
(e) Executive Schedule.--Section 5314 of title 5, United States Code, is
amended by inserting after the item relating to the Under Secretary of
Agriculture for Farm and Foreign Agricultural Services (as added by section
225(e)(2)) the following:
``Under Secretary of Agriculture for Food, Nutrition, and Consumer
Services.''.
Subtitle E--Natural Resources and Environment
SEC. 245. UNDER SECRETARY OF AGRICULTURE FOR NATURAL RESOURCES AND ENVIRONMENT.
(a) Authorization.--The Secretary is authorized to establish in the
Department the position of Under Secretary of Agriculture for Natural Resources
and Environment.
(b) Confirmation Required.--If the Secretary establishes the position of
Under Secretary of Agriculture for Natural Resources and Environment authorized
under subsection (a), the Under Secretary shall be appointed by the President,
by and with the advice and consent of the Senate.
(c) Functions of Under Secretary.--
(1) Principal functions.--Upon establishment, the Secretary shall
delegate to the Under Secretary of Agriculture for Natural Resources and
Environment those functions under the jurisdiction of the Department
that are related to natural resources and environment (except to the
extent those functions are delegated under section 226).
(2) Additional functions.--The Under Secretary of Agriculture for
Natural Resources and Environment shall perform such other functions and
duties as may be required by law or prescribed by the Secretary.
(d) Succession.--Any official who is serving as Assistant Secretary of
Agriculture for Natural Resources and Environment on the date of the enactment
of this Act and who was appointed by the President, by and with the advice and
consent of the Senate, shall not be required to be reappointed under subsection
(b) to the successor position authorized under subsection (a) if the Secretary
establishes the position, and the official occupies the new position, within 180
days after the date of the enactment of this Act (or such later date set by the
Secretary if litigation delays rapid succession).
(e) Executive Schedule.--Section 5314 of title 5, United States Code, is
amended by inserting after the item relating to the Under Secretary of
Agriculture for Food, Nutrition, and Consumer Services (as added by section
241(e)) the following:
``Under Secretary of Agriculture for Natural Resources and
Environment.''.
SEC. 246. NATURAL RESOURCES CONSERVATION SERVICE.
(a) Establishment.--The Secretary is authorized to establish and maintain
within the Department a Natural Resources Conservation Service.
(b) Functions.--If the Secretary establishes the Natural Resources
Conservation Service under subsection (a), the Secretary is authorized to assign
to the Service jurisdiction over the following:
(1) The rural environmental conservation program under title X of
the Agricultural Act of 1970 (16 U.S.C. 1501 et seq.).
(2) The Great Plains Conservation Program under section 16(b) of the
Soil Conservation and Domestic Allotment Act (16 U.S.C. 590p(b)).
(3) The Water Bank Act (16 U.S.C. 1301 et seq.);
(4) The forestry incentive program under section 4 of the
Cooperative Forestry Assistance Act of 1978 (16 U.S.C. 2103).
(5) Title XII of the Food Security Act of 1985 (16 U.S.C. 3801 et
seq.), except subchapter B of chapter 1 of subtitle D of such title.
(6) Salinity control program under section 202(c) of the Colorado
River Basin Salinity Control Act (43 U.S.C. 1592(c)).
(7) The Farms for the Future Act of 1990 (7 U.S.C. 4201 note).
(8) Such other functions as the Secretary considers appropriate,
except functions under subchapter B of chapter 1 of subtitle D of title
XII of the Food Security Act of 1985 (16 U.S.C. 3831-3836) and the
agricultural conservation program under the Soil Conservation and
Domestic Allotment Act (16 U.S.C. 590g et seq.).
(c) Special Concurrence Requirements for Certain Functions.--In carrying out
the programs specified in paragraphs (2), (3), (4), and (6) of subsection (b)
and the program under subchapter C of chapter 1 of subtitle D of title XII of
the Food Security Act of 1985 (16 U.S.C. 3837-3837f), the Secretary shall--
(1) acting on the recommendations of the Natural Resources
Conservation Service, with the concurrence of the Consolidated Farm
Service Agency, issue regulations to carry out such programs;
(2) ensure that the Natural Resources Conservation Service, in
establishing policies, priorities, and guidelines for each such program,
does so with the concurrence of the Consolidated Farm Service Agency at
national, State, and local levels;
(3) ensure that, in reaching such concurrence at the local level,
the Natural Resources Conservation Service works in cooperation with
Soil and Water Conservation Districts or similar organizations
established under State law;
(4) ensure that officials of county and area committees established
under section 8(b)(5) of the Soil Conservation and Domestic Allotment
Act (16 U.S.C. 590h(b)(5)) meet annually with officials of such
Districts or similar organizations to consider local conservation
priorities and guidelines; and
(5) take steps to ensure that the concurrence process does not
interfere with the effective delivery of such programs.
(d) Use of Federal and Non-Federal Employees.--
(1) Use authorized.--In the implementation of functions assigned to
the Natural Resources Conservation Service, the Secretary may use
interchangeably in local offices of the Service both Federal employees
of the Department and non-Federal employees of county and area
committees established under section 8(b)(5) of the Soil Conservation
and Domestic Allotment Act (16 U.S.C. 590h(b)(5)).
(2) Exception.--Notwithstanding paragraph (1), no personnel action
(as defined in section 2302(a)(2)(A) of title 5, United States Code) may
be taken with respect to a Federal employee unless such action is taken
by another Federal employee.
(e) Savings Provision.--For purposes of subsections (c) and (d) of this
section:
(1) A reference to the ``Natural Resources Conservation Service''
includes any other office, agency, or administrative unit of the
Department assigned the functions authorized for the Natural Resources
Conservation Service under this section.
(2) A reference to the ``Consolidated Farm Service Agency'' includes
any other office, agency, or administrative unit of the Department
assigned the functions authorized for the Consolidated Farm Service
Agency under section 226.
(f) Conforming Amendments.--
(1) Soil conservation service.--Section 5 of the Soil Conservation
and Domestic Allotment Act (16 U.S.C. 590e) is repealed.
(2) Soil and water resources conservation.--The Soil and Water
Resources Conservation Act of 1977 (16 U.S.C. 2001) is amended--
(A) in section 2(2) (16 U.S.C. 2001(2))--
(i) by striking ``created the Soil Conservation
Service''; and
(ii) by striking ``Department of Agriculture which''
and inserting ``, has ensured that the Department of
Agriculture'';
(B) in section 3(2) (16 U.S.C. 2002(2)), by striking
``through the Soil Conservation Service''; and
(C) in section 6(a) (16 U.S.C. 2005(a)), by striking ``Soil
Conservation Service'' and inserting ``Secretary''.
(3) State technical committees.--Section 1262 of the Food Security
Act of 1985 (16 U.S.C. 3862) is amended by adding at the end the
following new subsection:
``(e) FACA requirements.--The committees established under section 1261
shall be exempt from the Federal Advisory Committee Act (5 U.S.C. App.).''.
SEC. 247. REORGANIZATION OF FOREST SERVICE.
(a) Required Elements of Reorganization Proposals.--Reorganization proposals
that are developed by the Secretary to carry out the designation by the
President of the Forest Service as a Reinvention Lab pursuant to the National
Performance Review, dated September 1993, shall include proposals for--
(1) reorganizing the Service in a manner that is consistent with the
principles of interdisciplinary planning;
(2) redefining and consolidating the mission and roles of, and
research conducted by, employees of the Service in connection with the
National Forest System and State and private forestry to facilitate
interdisciplinary planning and to eliminate functionalism;
(3) reforming the budget structure of the Service to support
interdisciplinary planning, including reducing the number of budget line
items;
(4) defining new measures of accountability so that Congress may
meet the constitutional obligation of Congress to oversee the Service;
(5) achieving structural and organizational consolidations;
(6) to the extent practicable, sharing office space, equipment,
vehicles, and electronic systems with other administrative units of the
Department and other Federal field offices, including proposals for
using an on-line system by all administrative units of the Department to
maximize administrative efficiency; and
(7) reorganizing the Service in a manner that will result in a
larger percentage of employees of the Service being retained at
organizational levels below regional offices, research stations, and the
area office of the Service.
(b) Report.--Not later than March 31, 1995, the Secretary shall submit a
report to the Committee on Agriculture of the House of Representatives and the
Committee on Agriculture, Nutrition, and Forestry of the Senate that describes
actions taken to carry out subsection (a), identifies any disparities in
regional funding patterns, and contains the rationale behind the disparities.
Subtitle F--Research, Education, and Economics
SEC. 251. UNDER SECRETARY OF AGRICULTURE FOR RESEARCH, EDUCATION, AND ECONOMICS.
(a) Authorization.--The Secretary is authorized to establish in the
Department the position of Under Secretary of Agriculture for Research,
Education, and Economics.
(b) Confirmation Required.--If the Secretary establishes the position of
Under Secretary of Agriculture for Research, Education, and Economics authorized
under subsection (a), the Under Secretary shall be appointed by the President,
by and with the advice and consent of the Senate.
(c) Functions of Under Secretary.--
(1) Principal functions.--Upon establishment, the Secretary shall
delegate to the Under Secretary of Agriculture for Research, Education,
and Economics those functions and duties under the jurisdiction of the
Department that are related to research, education, and economics.
(2) Additional functions.--The Under Secretary of Agriculture for
Research, Education, and Economics shall perform such other functions
and duties as may be required by law or prescribed by the Secretary.
(d) Cooperative State Research, Education, and Extension Service.--
(1) Establishment.--There is established in the Department a
Cooperative State Research, Education, and Extension Service.
(2) Functions.--The Secretary shall delegate to the Cooperative
State Research, Education, and Extension Service functions related to
cooperative State research programs and cooperative extension and
education programs that are under the jurisdiction of the Department.
(3) Officer-in-charge.--If the Secretary establishes the position of
Under Secretary of Agriculture for Research, Education, and Economics,
the officer in charge of the Cooperative State Research, Education, and
Extension Service shall report directly to the Under Secretary.
(e) Executive Schedule.--Section 5314 of title 5, United States Code, is
amended by inserting after the item relating to the Under Secretary of
Agriculture for Natural Resources and Environment (as added by section 245(e))
the following:
``Under Secretary of Agriculture for Research, Education, and
Economics.''.
SEC. 252. PROGRAM STAFF.
In making the personnel reductions required under section 213, the Secretary
shall reduce the number of Federal research and education personnel of the
Department by a percentage equal to at least the percentage of overall
Department personnel reductions. The Secretary shall achieve such reduction in
research and education personnel in a manner that minimizes duplication and
maximizes coordination between Federal and State research and extension
activities.
Subtitle G--Food Safety
SEC. 261. UNDER SECRETARY OF AGRICULTURE FOR FOOD SAFETY.
(a) Establishment.--There is established in the Department of Agriculture
the position of Under Secretary of Agriculture for Food Safety. The Under
Secretary shall be appointed by the President, by and with the advice and
consent of the Senate, from among individuals with specialized training or
significant experience in food safety or public health programs.
(b) Functions of Under Secretary.--
(1) Principal functions.--The Secretary shall delegate to the Under
Secretary of Agriculture for Food Safety those functions and duties
under the jurisdiction of the Department that are primarily related to
food safety.
(2) Additional functions.--The Under Secretary of Agriculture for
Food Safety shall perform such other functions and duties as may be
required by law or prescribed by the Secretary.
(c) Executive Schedule.--Section 5314 of title 5, United States Code, is
amended by inserting after the item relating to the Under Secretary of
Agriculture for Research, Education, and Economics (as added by section 251(e))
the following:
``Under Secretary of Agriculture for Food Safety.''.
(d) Technical and Scientific Review Groups.--The Secretary, acting through
the Under Secretary for Research, Education, and Economics, may, without regard
to the provisions of title 5, United States Code, governing appointment in the
competitive service, and without regard to the provisions of chapter 51 and
subchapter III of chapter 53 of title 5, United States Code, relating to
classification and General Schedule pay rates--
(1) establish such technical and scientific review groups as are
needed to carry out the functions of the Department; and
(2) appoint and pay the members of the groups, except that officers
and employees of the United States shall not receive additional
compensation for service as a member of a group.
SEC. 262. CONDITIONS FOR IMPLEMENTATION OF ALTERATIONS IN THE LEVEL OF ADDITIVES
ALLOWED IN ANIMAL DIETS.
(a) Conditions.--The Food and Drug Administration shall not implement or
enforce the final rule described in subsection (b) to alter the level of
selenium allowed to be used as a supplement in animal diets unless the
Commissioner of the Food and Drug Administration makes a determination that--
(1) selenium additives are not essential, at levels authorized in
the absence of such final rule, to maintain animal nutrition and protect
animal health;
(2) selenium at such levels is not safe to the animals consuming the
additive;
(3) selenium at such levels is not safe to individuals consuming
edible portions of animals that receive the additive;
(4) selenium at such levels does not achieve its intended effect of
promoting normal growth and reproduction of livestock and poultry; and
(5) the manufacture and use of selenium at such levels cannot
reasonably be controlled by adherence to current good manufacturing
practice requirements.
(b) Final Rule Described.--The final rule referred to in subsection (a) is
the final rule issued by the Food and Drug Administration and published in the
Federal Register on September 13, 1993 (58 Fed. Reg. 47962), in which the
Administration stayed 1987 amendments to the selenium food additive regulations,
and any modification of such rule issued after the date of the enactment of this
Act.
Subtitle H--National Appeals Division
SEC. 271. DEFINITIONS.
For purposes of this subtitle:
(1) Adverse decision.--The term ``adverse decision'' means an
administrative decision made by an officer, employee, or committee of an
agency that is adverse to a participant. The term includes a denial of
equitable relief by an agency or the failure of an agency to issue a
decision or otherwise act on the request or right of the participant.
The term does not include a decision over which the Board of Contract
Appeals has jurisdiction.
(2) Agency.--The term ``agency'' means any agency of the Department
designated by the Secretary or a successor agency of the Department,
except that the term shall include the following (and any successor to
the following):
(A) The Consolidated Farm Service Agency (or other office,
agency, or administrative unit of the Department assigned the
functions authorized for the Consolidated Farm Service Agency
under section 226).
(B) The Commodity Credit Corporation, with respect to
domestic programs.
(C) The Farmers Home Administration.
(D) The Federal Crop Insurance Corporation.
(E) The Rural Development Administration.
(F) The Natural Resources Conservation Service (or other
office, agency, or administrative unit of the Department
assigned the functions authorized for the Natural Resources
Conservation Service under section 246(b)).
(G) A State, county, or area committee established under
section 8(b)(5) of the Soil Conservation and Domestic Allotment
Act (16 U.S.C. 590h(b)(5)).
(3) Appellant.--The term ``appellant'' means a participant who
appeals an adverse decision in accordance with this subtitle.
(4) Case record.--The term ``case record'' means all the materials
maintained by the Secretary related to an adverse decision.
(5) Director.--The term ``Director'' means the Director of the
Division.
(6) Division.--The term ``Division'' means the National Appeals
Division established by this title.
(7) Hearing officer.--The term ``hearing officer'' means an
individual employed by the Division who hears and determines appeals of
adverse decisions by any agency.
(8) Implement.--The term ``implement'' refers to those actions
necessary to effectuate fully and promptly a final determination of the
Division not later than 30 calendar days after the effective date of the
final determination.
(9) Participant.--The term ``participant'' shall have the meaning
given that term by the Secretary by regulation.
SEC. 272. NATIONAL APPEALS DIVISION AND DIRECTOR.
(a) Establishment of Division.--The Secretary shall establish and maintain
an independent National Appeals Division within the Department to carry out this
subtitle.
(b) Director.--
(1) Appointment.--The Division shall be headed by a Director,
appointed by the Secretary from among persons who have substantial
experience in practicing administrative law. In considering applicants
for the position of Director, the Secretary shall consider persons
currently employed outside Government as well as Government employees.
(2) Term and removal.--The Director shall serve for a 6-year term of
office, and shall be eligible for reappointment. The Director shall not
be subject to removal during the term of office, except for cause
established in accordance with law.
(3) Position classification.--The position of the Director may not
be a position in the excepted service or filled by a noncareer
appointee.
(c) Direction, Control, and Support.--The Director shall be free from the
direction and control of any person other than the Secretary. The Division shall
not receive administrative support (except on a reimbursable basis) from any
agency other than the Office of the Secretary. The Secretary may not delegate to
any other officer or employee of the Department, other than the Director, the
authority of the Secretary with respect to the Division.
(d) Determination of Appealability of Agency Decisions.--If an officer,
employee, or committee of an agency determines that a decision is not appealable
and a participant appeals the decision to the Director, the Director shall
determine whether the decision is adverse to the individual participant and thus
appealable or is a matter of general applicability and thus not subject to
appeal. The determination of the Director as to whether a decision is appealable
shall be administratively final.
(e) Division Personnel.--The Director shall appoint such hearing officers
and other employees as are necessary for the administration of the Division. A
hearing officer or other employee of the Division shall have no duties other
than those that are necessary to carry out this subtitle.
SEC. 273. TRANSFER OF FUNCTIONS.
There are transferred to the Division all functions exercised and all
administrative appeals pending before the effective date of this subtitle
(including all related functions of any officer or employee) of or relating to--
(1) the National Appeals Division established by section 426(c) of
the Agricultural Act of 1949 (7 U.S.C. 1433e(c)) (as in effect on the
day before the date of the enactment of this Act);
(2) the National Appeals Division established by subsections (d)
through (g) of section 333B of the Consolidated Farm and Rural
Development Act (7 U.S.C. 1983b) (as in effect on the day before the
date of the enactment of this Act);
(3) appeals of decisions made by the Federal Crop Insurance
Corporation; and
(4) appeals of decisions made by the Soil Conservation Service (as
in effect on the day before the date of the enactment of this Act).
SEC. 274. NOTICE AND OPPORTUNITY FOR HEARING.
Not later than 10 working days after an adverse decision is made that
affects the participant, the Secretary shall provide the participant with
written notice of such adverse decision and the rights available to the
participant under this subtitle or other law for the review of such adverse
decision.
SEC. 275. INFORMAL HEARINGS.
If an officer, employee, or committee of an agency makes an adverse
decision, the agency shall hold, at the request of the participant, an informal
hearing on the decision. With respect to programs carried out through the
Consolidated Farm Service Agency (or other office, agency, or administrative
unit of the Department assigned to carry out the programs authorized for the
Consolidated Farm Service Agency under section 226), the Secretary shall
maintain the informal appeals process applicable to such programs, as in effect
on the date of the enactment of the subtitle. If a mediation program is
available under title V of the Agricultural Credit Act of 1987 (7 U.S.C. 5101 et
seq.) as a part of the informal hearing process, the participant shall be
offered the right to choose such mediation.
SEC. 276. RIGHT OF PARTICIPANTS TO DIVISION HEARING.
(a) Appeal to Division for Hearing.--Subject to subsection (b), a
participant shall have the right to appeal an adverse decision to the Division
for an evidentiary hearing by a hearing officer consistent with section 277.
(b) Time for Appeal.--To be entitled to a hearing under section 277, a
participant shall request the hearing not later than 30 days after the date on
which the participant first received notice of the adverse decision.
SEC. 277. DIVISION HEARINGS.
(a) General Powers of Director and Hearing Officers.--
(1) Access to case record.--The Director and hearing officer shall
have access to the case record of any adverse decision appealed to the
Division for a hearing.
(2) Administrative procedures.--The Director and hearing officer
shall have the authority to require the attendance of witnesses, and the
production of evidence, by subpoena and to administer oaths and
affirmations. Except to the extent required for the disposition of ex
parte matters as authorized by law--
(A) an interested person outside the Division shall not make
or knowingly cause to be made to the Director or a hearing
officer who is or may reasonably be expected to be involved in
the evidentiary hearing or review of an adverse decision, an ex
parte communication (as defined in section 551(14) of title 5,
United States Code) relevant to the merits of the proceeding;
(B) the Director and such hearing officer shall not make or
knowingly cause to be made to any interested person outside the
Division an ex parte communication relevant to the merits of the
proceeding.
(b) Time for Hearing.--Upon a timely request for a hearing under section
276(b), an appellant shall have the right to have a hearing by the Division on
the adverse decision within 45 days after the date of the receipt of the request
for the hearing.
(c) Location and Elements of Hearing.--
(1) Location.--A hearing on an adverse decision shall be held in the
State of residence of the appellant or at a location that is otherwise
convenient to the appellant and the Division.
(2) Evidentiary hearing.--The evidentiary hearing before a hearing
officer shall be in person, unless the appellant agrees to a hearing by
telephone or by a review of the case record. The hearing officer shall
not be bound by previous findings of fact by the agency in making a
determination.
(3) Information at hearing.--The hearing officer shall consider
information presented at the hearing without regard to whether the
evidence was known to the agency officer, employee, or committee making
the adverse decision at the time the adverse decision was made. The
hearing officer shall leave the record open after the hearing for a
reasonable period of time to allow the submission of information by the
appellant or the agency after the hearing to the extent necessary to
respond to new facts, information, arguments, or evidence presented or
raised by the agency or appellant.
(4) Burden of proof.--The appellant shall bear the burden of proving
that the adverse decision of the agency was erroneous.
(d) Determination Notice.--The hearing officer shall issue a notice of the
determination on the appeal not later than 30 days after a hearing or after
receipt of the request of the appellant to waive a hearing, except that the
Director may establish an earlier or later deadline. If the determination is not
appealed to the Director for review under section 278, the notice provided by
the hearing officer shall be considered to be a notice of an administratively
final determination.
(e) Effective Date.--The final determination shall be effective as of the
date of filing of an application, the date of the transaction or event in
question, or the date of the original adverse decision, whichever is applicable.
SEC. 278. DIRECTOR REVIEW OF DETERMINATIONS OF HEARING OFFICERS.
(a) Requests for Director Review.--
(1) Time for request by appellant.--Not later than 30 days after the
date on which an appellant receives the determination of a hearing
officer under section 277, the appellant shall submit a written request
to the Director for review of the determination in order to be entitled
to a review by the Director of the determination.
(2) Time for request by agency head.--Not later than 15 business
days after the date on which an agency receives the determination of a
hearing officer under section 277, the head of the agency may make a
written request that the Director review the determination.
(b) Determination of Director.--The Director shall conduct a review of the
determination of the hearing officer using the case record, the record from the
evidentiary hearing under section 277, the request for review, and such other
arguments or information as may be accepted by the Director. Based on such
review, the Director shall issue a final determination notice that upholds,
reverses, or modifies the determination of the hearing officer. However, if the
Director determines that the hearing record is inadequate, the Director may
remand all or a portion of the determination for further proceedings to complete
the hearing record or, at the option of the Director, to hold a new hearing. The
Director shall complete the review and either issue a final determination or
remand the determination not later than--
(1) 10 business days after receipt of the request for review, in the
case of a request by the head of an agency for review; or
(2) 30 business days after receipt of the request for review, in the
case of a request by an appellant for review.
(c) Basis for Determination.--The determination of the hearing officer and
the Director shall be based on information from the case record, laws applicable
to the matter at issue, and applicable regulations published in the Federal
Register and in effect on the date of the adverse decision or the date on which
the acts that gave rise to the adverse decision occurred, whichever date is
appropriate.
(d) Equitable Relief.--Subject to regulations issued by the Secretary, the
Director shall have the authority to grant equitable relief under this section
in the same manner and to the same extent as such authority is provided to the
Secretary under section 326 of the Food and Agriculture Act of 1962 (7 U.S.C.
1339a) and other laws. Notwithstanding the administrative finality of a final
determination of an appeal by the Division, the Secretary shall have the
authority to grant equitable or other types of relief to the appellant after an
administratively final determination is issued by the Division.
(e) Effective Date.--A final determination issued by the Director shall be
effective as of the date of filing of an application, the date of the
transaction or event in question, or the date of the original adverse decision,
whichever is applicable.
SEC. 279. JUDICIAL REVIEW.
A final determination of the Division shall be reviewable and enforceable by
any United States district court of competent jurisdiction in accordance with
chapter 7 of title 5, United States Code.
SEC. 280. IMPLEMENTATION OF FINAL DETERMINATIONS OF DIVISION.
On the return of a case to an agency pursuant to the final determination of
the Division, the head of the agency shall implement the final determination not
later than 30 days after the effective date of the notice of the final
determination.
SEC. 281. CONFORMING AMENDMENTS RELATING TO NATIONAL APPEALS DIVISION.
(a) Decisions of State, County, and Area Committees.--
(1) Application of subsection.--This subsection shall apply only
with respect to functions of the Consolidated Farm Service Agency or the
Commodity Credit Corporation that are under the jurisdiction of a State,
county, or area committee established under section 8(b)(5) of the Soil
Conservation and Domestic Allotment Act (16 U.S.C. 590h(b)(5)) or an
employee of such a committee.
(2) Finality.--Each decision of a State, county, or area committee
(or an employee of such a committee) covered by paragraph (1) that is
made in good faith in the absence of misrepresentation, false statement,
fraud, or willful misconduct shall be final not later than 90 days after
the date of filing of the application for benefits, unless the decision
is--
(A) appealed under this subtitle; or
(B) modified by the Administrator of the Consolidated Farm
Service Agency or the Executive Vice President of the Commodity
Credit Corporation.
(3) Recovery of amounts.--If the decision of the State, county, or
area committee has become final under paragraph (2), no action may be
taken by the Consolidated Farm Service Agency, the Commodity Credit
Corporation, or a State, county, or area committee to recover amounts
found to have been disbursed as a result of a decision in error unless
the participant had reason to believe that the decision was erroneous.
(4) Savings provision.--For purposes of this subsection, a reference
to the ``Consolidated Farm Service Agency'' includes any other office,
agency, or administrative unit of the Department assigned the functions
authorized for the Consolidated Farm Service Agency under section 226.
(b) Agricultural Stabilization and Conservation Service.--Section 426 of the
Agricultural Act of 1949 (7 U.S.C. 1433e) is repealed.
(c) Farmers Home Administration.--Section 333B of the Consolidated Farm and
Rural Development Act (7 U.S.C. 1983b) is repealed.
SEC. 282. EXPANSION OF ISSUES COVERED BY STATE MEDIATION PROGRAMS.
(a) Expansion of Mediation Programs.--Section 501 of the Agricultural Credit
Act of 1987 (7 U.S.C. 5101) is amended--
(1) in subsection (a), by striking ``an agricultural loan mediation
program'' and inserting ``a mediation program'';
(2) in subsection (b), by striking ``agricultural loan''; and
(3) by striking subsection (c) and inserting the following new
subsection:
``(c) Requirements of State Mediation Programs.--
``(1) Issues covered.--To be certified as a qualifying State, the
mediation program of the State must provide mediation services for the
persons described in paragraph (2) who are involved in agricultural
loans or agricultural loans and one or more of the following issues
under the jurisdiction of the Department of Agriculture:
``(A) Wetlands determinations.
``(B) Compliance with farm programs, including conservation
programs.
``(C) Agricultural credit.
``(D) Rural water loan programs.
``(E) Grazing on National Forest System lands.
``(F) Pesticides.
``(G) Such other issues as the Secretary considers
appropriate.
``(2) Persons eligible for mediation.--The persons referred to in
paragraph (1) are producers, their creditors (if applicable), and other
persons directly affected by actions of the Department of Agriculture.
``(3) Certification conditions.--The Secretary shall certify a State
as a qualifying State with respect to the issues proposed to be covered
by the mediation program of the State if the mediation program--
``(A) provides for mediation services that, if decisions are
reached, result in mediated, mutually agreeable decisions
between the parties to the mediation;
``(B) is authorized or administered by an agency of the
State government or by the Governor of the State;
``(C) provides for the training of mediators;
``(D) provides that the mediation sessions shall be
confidential;
``(E) ensures, in the case of agricultural loans, that all
lenders and borrowers of agricultural loans receive adequate
notification of the mediation program; and
``(F) ensures, in the case of other issues covered by the
mediation program, that persons directly affected by actions of
the Department of Agriculture receive adequate notification of
the mediation program.''.
(b) Participation of Department.--Section 503 of such Act (7 U.S.C. 5103) is
amended--
(1) by striking ``agricultural loan'' each place it appears;
(2) in the matter preceding subparagraph (A) of subsection (a)(1)--
(A) by inserting ``or agency'' after ``program''; and
(B) by striking ``that makes, guarantees, or insures
agricultural loans'';
(3) in subsection (a)(1)(A)--
(A) by inserting ``or agency'' after ``such program''; and
(B) by inserting ``certified under section 501'' after
``mediation program'';
(4) in subsection (a)(1)(B)--
(A) by striking ``, effective beginning on the date of the
enactment of this Act,''; and
(B) by inserting ``certified under section 501'' after
``mediation programs''; and
(5) in subsection (a)(1)(C)--
(A) in clause (i), by striking ``described in'' and
inserting ``certified under''; and
(B) in clause (ii), by inserting ``if applicable,'' before
``present''.
(c) Regulations.--Section 504 of such Act (7 U.S.C. 5104) is amended--
(1) by striking ``Within 150 days after the date of the enactment of
this Act, the'' and inserting ``The''; and
(2) by adding at the end the following new sentence: ``The
regulations prescribed by the Secretary shall require qualifying States
to adequately train mediators to address all of the issues covered by
the mediation program of the State.''.
(d) Report.--Section 505 of such Act (7 U.S.C. 5105) is amended by striking
``1990'' and inserting ``1998''.
(e) Authorization of Appropriations.--Section 506 of such Act (7 U.S.C.
5106) is amended by striking ``1995'' and inserting ``2000''.
(f) Conforming Amendments.--
(1) References to agricultural loans.--Subtitle A of title V of such
Act is amended--
(A) in sections 502 and 505(1) (7 U.S.C. 5102, 5105(1)), by
striking ``agricultural loan'' each place it appears; and
(B) in section 505(3) (7 U.S.C. 5105(3)), by striking ``an
agricultural loan mediation'' and inserting ``a mediation''.
(2) Waiver of farm credit system mediation rights by borrowers.--
Section 4.14E of the Farm Credit Act of 1971 (12 U.S.C. 2202e) is
amended by striking ``agricultural loan''.
(3) Waiver of fmha mediation rights by borrowers.--Section 358 of
the Consolidated Farm and Rural Development Act (7 U.S.C. 2006) is
amended by striking ``agricultural loan''.
SEC. 283. AUTHORIZATION OF APPROPRIATIONS.
There are authorized to be appropriated such sums as may be necessary to
carry out the activities of the Division.
Subtitle I--Miscellaneous Reorganization Provisions
SEC. 291. SUCCESSORSHIP PROVISIONS RELATING TO BARGAINING UNITS AND EXCLUSIVE
REPRESENTATIVES.
(a) Voluntary Agreement.--
(1) In general.--If the exercise of the Secretary's authority under
this title results in changes to an existing bargaining unit that has
been certified under chapter 71 of title 5, United States Code, the
affected parties shall attempt to reach a voluntary agreement on a new
bargaining unit and an exclusive representative for such unit.
(2) Criteria.--In carrying out the requirements of this subsection,
the affected parties shall use criteria set forth in--
(A) sections 7103(a)(4), 7111(e), 7111(f)(1), and 7120 of
title 5, United States Code, relating to determining an
exclusive representative; and
(B) section 7112 of title 5, United States Code
(disregarding subsections (b)(5) and (d) thereof), relating to
determining appropriate units.
(b) Effect of an Agreement.--
(1) In general.--If the affected parties reach agreement on the
appropriate unit and the exclusive representative for such unit under
subsection (a), the Federal Labor Relations Authority shall certify the
terms of such agreement, subject to paragraph (2)(A). Nothing in this
subsection shall be considered to require the holding of any hearing or
election as a condition for certification.
(2) Restrictions.--
(A) Conditions requiring noncertification.--The Federal
Labor Relations Authority may not certify the terms of an
agreement under paragraph (1) if--
(i) it determines that any of the criteria referred
to in subsection (a)(2) (disregarding section 7112(a) of
title 5, United States Code) have not been met; or
(ii) after the Secretary's exercise of authority and
before certification under this section, a valid
election under section 7111(b) of title 5, United States
Code, is held covering any employees who would be
included in the unit proposed for certification.
(B) Temporary waiver of provision that would bar an election
after a collective bargaining agreement is reached.--Nothing in
section 7111(f)(3) of title 5, United States Code, shall prevent
the holding of an election under section 7111(b) of such title
that covers employees within a unit certified under paragraph
(1), or giving effect to the results of such an election
(including a decision not to be represented by any labor
organization), if the election is held before the end of the 12-
month period beginning on the date such unit is so certified.
(C) Clarification.--The certification of a unit under
paragraph (1) shall not, for purposes of the last sentence of
section 7111(b) of title 5, United States Code, or section
7111(f)(4) of such title, be treated as if it had occurred
pursuant to an election.
(3) Delegation.--
(A) In general.--The Federal Labor Relations Authority may
delegate to any regional director (as referred to in section
7105(e) of title 5, United States Code) its authority under the
preceding provisions of this subsection.
(B) Review.--Any action taken by a regional director under
subparagraph (A) shall be subject to review under the provisions
of section 7105(f) of title 5, United States Code, in the same
manner as if such action had been taken under section 7105(e) of
such title, except that in the case of a decision not to
certify, such review shall be required if application therefor
is filed by an affected party within the time specified in such
provisions.
(c) Definition.--For purposes of this section, the term ``affected party''
means--
(1) with respect to an exercise of authority by the Secretary under
this title, any labor organization affected thereby; and
(2) the Department of Agriculture.
SEC. 292. PURCHASE OF AMERICAN-MADE EQUIPMENT AND PRODUCTS.
(a) Sense of Congress.--It is the sense of the Congress that, to the
greatest extent practicable, all equipment and products purchased using funds
made available pursuant to this title should be American-made.
(b) Notice Requirement.--In providing financial assistance to, or entering
into any contract with, any entity using funds made available pursuant to this
title, the Secretary, to the greatest extent practicable, shall provide to such
entity a notice describing the statement made in subsection (a) by the Congress.
SEC. 293. MISCELLANEOUS CONFORMING AMENDMENTS.
(a) United States Grain Standards Act.--The United States Grain Standards
Act (7 U.S.C. 71 et seq.) is amended--
(1) in section 3 (7 U.S.C. 75)--
(A) by inserting ``and'' at the end of subsection (y);
(B) by striking subsections (z) and (aa); and
(C) by redesignating subsection (bb) as subsection (z);
(2) by striking section 3A (7 U.S.C. 75a);
(3) in section 5(b) (7 U.S.C. 77(b)), by striking ``Service
employees'' and inserting ``employees of the Secretary'';
(4) in sections 7(j)(2) and 7A(l)(2) (7 U.S.C. 79(j)(2) and
79a(l)(2)), by striking ``supervision by Service personnel of its field
office personnel'' in the first sentence of both sections and inserting
``supervision by the Secretary of the Secretary's field office
personnel'';
(5) in section 12(c) (7 U.S.C. 87a(c)), by striking ``or
Administrator'';
(6) in section 12(d) (7 U.S.C. 87a(d)), by striking ``or the
Administrator'';
(7) except as otherwise provided in this subsection, by striking
``Administrator'' each place it appears and inserting ``Secretary''; and
(8) except as otherwise provided in this subsection, by striking
``Service'' each place it appears and inserting ``Secretary''.
(b) Packers and Stockyards Act, 1921.--Section 407 of the Packers and
Stockyards Act, 1921 (7 U.S.C. 228), is amended--
(1) by striking subsection (b);
(2) by redesignating subsections (c), (d), (e), and (f), as
subsections (b), (c), (d), and (e), respectively; and
(3) in subsection (e) (as so redesignated), by striking ``subsection
(e)'' and inserting ``subsection (d)''.
SEC. 294. REMOVAL OF OBSOLETE ADMINISTRATIVE PROVISIONS.
Section 5316 of title 5, United States Code, is amended--
(1) by striking ``Administrator, Agricultural Marketing Service,
Department of Agriculture.'';
(2) by striking ``Administrator, Agricultural Research Service,
Department of Agriculture.'';
(3) by striking ``Administrator, Agricultural Stabilization and
Conservation Service, Department of Agriculture.'';
(4) by striking ``Administrator, Farmers Home Administration.'';
(5) by striking ``Administrator, Foreign Agricultural Service,
Department of Agriculture.'';
(6) by striking ``Administrator, Rural Electrification
Administration, Department of Agriculture.'';
(7) by striking ``Administrator, Soil Conservation Service,
Department of Agriculture.'';
(8) by striking ``Chief Forester of the Forest Service, Department
of Agriculture.'';
(9) by striking ``Director of Science and Education, Department of
Agriculture.'';
(10) by striking ``Administrator, Animal and Plant Health Inspection
Service, Department of Agriculture.''; and
(11) by striking ``Administrator, Federal Grain Inspection Service,
Department of Agriculture.''.
SEC. 295. PROPOSED CONFORMING AMENDMENTS.
Not later than 180 days after the date of the enactment of this Act, the
Secretary shall submit to Congress recommended legislation containing additional
technical and conforming amendments to Federal laws that are required as a
result of the enactment of this title.
SEC. 296. TERMINATION OF AUTHORITY.
(a) In General.--Subject to subsection (b), the authority delegated to the
Secretary by this title to reorganize the Department shall terminate on the date
that is 2 years after the date of enactment of this Act.
(b) Functions.--Subsection (a) shall not affect--
(1) the authority of the Secretary to continue to carry out a
function that the Secretary performs on the date that is 2 years after
the date of enactment of this Act;
(2) the authority delegated to the Secretary under Reorganization
Plan No. 2 of 1953 (5 U.S.C. App; 7 U.S.C. 2201 note); or
(3) the authority of an agency, office, officer, or employee of the
Department to continue to perform all functions delegated or assigned to
the entity or person as of that termination date.
TITLE III--MISCELLANEOUS
SEC. 301. POULTRY LABELING.
It is the sense of Congress that--
(1) the United States Department of Agriculture should--
(A) carry out the plans of the Department to hold public
hearings for the purpose of receiving public input on issues
related to the conditions under which poultry sold in the United
States may be labeled ``fresh''; and
(B) finalize and publish a decision on the issues as
expeditiously as possible after holding the hearings; and
(2) no person serving on the expert advisory committee established
to advise the Secretary of Agriculture on the issues should stand to
profit, or represent any interest that would stand to profit, from the
decision of the Department on the issues.
SEC. 302. FIRST AMENDMENT RIGHTS OF EMPLOYEES OF THE UNITED STATES DEPARTMENT OF
AGRICULTURE.
Notwithstanding any other provision of law, no employee of the United States
Department of Agriculture shall be peremptorily removed, on or after February
15, 1994, from the position of the employee without an opportunity for a public
or nonpublic hearing, at the option of the employee, because of remarks made
during personal time in opposition to policies, or proposed policies, of the
Department, including policies or proposed policies regarding homosexuals. Any
employee removed on or after February 15, 1994, without the opportunity for such
a hearing shall be reinstated to the position of the employee pending such a
hearing.
SEC. 303. ADJUSTED COST OF THRIFTY FOOD PLAN.
(a) In General.--Section 3(o)(11) of the Food Stamp Act of 1977 (7 U.S.C.
2012(o)(11)) is amended by inserting ``and (in the case of households residing
in Alaska) on October 1, 1994,'' after ``1992,''.
(b) Effective Date.--The amendment made by subsection (a) shall be effective
beginning on September 30, 1994.
SEC. 304. OFFICE OF RISK ASSESSMENT AND COST-BENEFIT ANALYSIS.
(a) Office of Risk Assessment and Cost-Benefit Analysis.--The Secretary of
Agriculture shall establish in the Department of Agriculture an Office of Risk
Assessment and Cost-Benefit Analysis, which shall be under the direction of a
Director appointed by the Secretary.
(b) Functions.--The Director shall ensure that any regulatory analysis that
is conducted under this section includes a risk assessment and cost-benefit
analysis that is performed consistently and uses reasonably obtainable and sound
scientific, technical, economic, and other data.
(1) In general.--Effective six months after the date of enactment of
this Act, the Secretary of Agriculture shall publish in the Federal
Register, for each proposed major regulation the primary purpose of
which is to regulate issues of human health, human safety, or the
environment that is promulgated by the Department after the enactment of
this Act, an analysis with as much specificity as practicable, of--
(A) the risk, including the effect of the risk, to human
health, human safety, or the environment, and any combination
thereof, addressed by the regulation, including, where
applicable and practicable, the health and safety risks to
persons who are disproportionately exposed or particularly
sensitive;
(B) the costs associated with the implementation of, and
compliance with, the regulation;
(C) where appropriate and meaningful, a comparison of that
risk relative to other similar risks regulated by the Department
or other Federal Agency, resulting from comparable activities
and exposure pathways (such comparisons should consider relevant
distinctions among risks, such as the voluntary or involuntary
nature of risks and the preventability or nonpreventability of
risks); and
(D) the quantitative and qualitative benefits of the
regulation, including the reduction or prevention of risk
expected from the regulation.
Where such a regulatory analysis is not practicable because of compelling
circumstances, the Director shall provide an explanation in lieu of conducting
an analysis under this section.
(2) Evaluation.--The regulatory analysis referred to in paragraph
(1) should also contain a statement that the Secretary of Agriculture
evaluated--
(A) whether the regulation will advance the purpose of
protecting against the risk referred to in paragraph (1)(A); and
(B) whether the regulation will produce benefits and reduce
risks to human health, human safety, or the environment, and any
combination thereof, in a cost-effective manner as a result of
the implementation of and compliance with the regulation, by
local, State, and Federal Government and other public and
private entities, as estimated in paragraph (1)(B).
(3) This section shall not be construed to amend, modify, or alter
any statute and shall not be subject to judicial review. This section
shall not be construed to grant a cause of action to any person. The
Secretary of Agriculture shall perform the analyses required in this
section in such a manner that does not delay the promulgation or
implementation of regulations mandated by statute or judicial order.
(c) Definition.--As used in this section, the term ``major regulation''
means any regulation that the Secretary of Agriculture estimates is likely to
have an annual impact on the economy of the United States of $100,000,000 in
1994 dollars.
SEC. 305. FAIR AND EQUITABLE TREATMENT OF SOCIALLY DISADVANTAGED PRODUCERS.
(a) Fair Crop Acreage Bases and Farm Program Payment Yields.--If the
Secretary of Agriculture determines that crop acreage bases or farm program
payment yields established for farms owned or operated by socially disadvantaged
producers are not established in accordance with title V of the Agricultural Act
of 1949 (7 U.S.C. 1461 et seq.), the Secretary shall adjust the bases and yields
to conform to the requirements of such title and make available any appropriate
commodity program benefits.
(b) Fair Application of Consolidated Farm and Rural Development Act.--If the
Secretary of Agriculture determines that application of the Consolidated Farm
and Rural Development Act (7 U.S.C. 1921 et seq.) with respect to socially
disadvantaged producers is not consistent with the requirements of such Act, the
Secretary shall make such changes in the administration of such Act as the
Secretary considers necessary to provide for the fair and equitable treatment of
socially disadvantaged producers under such Act.
(c) Report on Treatment of Socially Disadvantaged Producers.--
(1) Report required.--The Comptroller General of the United States
shall prepare a report to determine--
(A) whether socially disadvantaged producers are
underrepresented on State, county, area, or local committees
established under section 8(b)(5) of the Soil Conservation and
Domestic Allotment Act (16 U.S.C. 590h(b)(5)) or local review
committees established under section 363 of the Agricultural
Adjustment Act of 1938 (7 U.S.C. 1363) because of racial,
ethnic, or gender prejudice; and
(B) if such underrepresentation exists, whether it inhibits
or interferes with the participation of socially disadvantaged
producers in programs of the Department of Agriculture.
(2) Submission of report.--Not later than February 1, 1995, the
Comptroller General shall submit the report required by this subsection
to the Committee on Agriculture of the House of Representatives and the
Committee on Agriculture, Nutrition, and Forestry of the Senate.
(d) Definition.--For purposes of this section, the term ``socially
disadvantaged producer'' means a producer who is a member of a group whose
members have been subjected to racial, ethnic, or gender prejudice because of
their identity as members of a group without regard to their individual
qualities.
SEC. 306. AVIATION INSPECTIONS.
(a) Study Regarding Acceptance of Federal Aviation Administration Aircraft
Inspections.--
(1) Intent of study.--The intent of the study required by this
subsection is to examine the cost efficiencies of conducting inspections
of aircraft and pilots by one Federal agency without reducing aircraft,
passenger, or pilot safety standards or lowering mission preparedness.
(2) Study required.--The Secretary of Agriculture and the Secretary
of Transportation shall jointly conduct a study of the inspection
specifications and procedures by which aircraft and pilots contracted by
the Department are certified to determine the cost efficiencies of
eliminating duplicative Department inspection requirements and
transferring some or all inspection requirements to the Federal Aviation
Administration, while ensuring that neither aircraft, passenger, nor
pilot safety is reduced and that mission preparedness is maintained.
(3) Special considerations.--In conducting the study, the
Secretaries shall evaluate current inspection specifications and
procedures mandated by the Department and the Forest Service, taking
into consideration the unique requirements and risks of particular
Department and Forest Service missions that may require special
inspection specifications and procedures to ensure the safety of
Department and Forest Service personnel and their contractees.
(4) Maintenance of standards and preparedness.--In making
recommendations to transfer inspection authority or otherwise change
Department inspection specifications and procedures, the Secretaries
shall ensure that the implementation of any such recommendations does
not lower aircraft or pilot standards or preparedness for Department or
Forest Service missions.
(5) Submission of results.--Not later than 180 days after the date
of the enactment of this Act, the Secretaries shall submit to Congress
the results of the study, including any recommendations to transfer
inspection authority or otherwise change Department inspection
specifications and procedures and a cost-benefit analysis of such
recommendations.
(b) Review of Recently Adopted Aircraft Policy.--
(1) Review required.--The Secretary of Agriculture shall review the
policy initiated by the Secretary on July 1, 1994, to accept Federal
Aviation Administration inspections on aircraft and pilots that provide
``airport to airport'' service for the Forest Service. The policy is
currently being cooperatively developed by the Department and the
Federal Aviation Administration and is intended to reduce duplicative
inspections and to reduce Government costs, while maintaining aircraft,
passenger, and pilot safety standards, specifications and procedures
currently required by the Department and the Forest Service.
(2) Expansion of policy.--As part of the review, the Secretary of
Agriculture shall examine the feasibility and desirability of applying
this policy on a Government-wide basis.
(3) Submission of results.--Not later than one year after the date
of the implementation of the policy, the Secretary of Agriculture shall
submit to Congress the results of the review, including any
recommendations that the Secretary considers appropriate.
Attest:
Clerk.