HR 2646 EAS/PP
In the Senate of the United States,
February 13, 2002.
Resolved, That the bill from the House of Representatives (H.R.
2646) entitled `An Act to provide for the continuation of agricultural programs
through fiscal year 2011.', do pass with the following
AMENDMENT:
Strike out all after the enacting clause and insert:
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) SHORT TITLE- This Act may be cited as the `Agriculture,
Conservation, and Rural Enhancement Act of 2002'.
(b) TABLE OF CONTENTS- The table of contents of this Act is as
follows:
TITLE I--COMMODITY PROGRAMS
Subtitle A--Direct and Counter-Cyclical Payments
Sec. 111. Direct and counter-cyclical payments.
Sec. 112. Violations of contracts.
Sec. 113. Planting flexibility.
Sec. 114. Pilot program for farm counter-cyclical savings
accounts.
Subtitle B--Nonrecourse Marketing Assistance Loans and Loan Deficiency
Payments
Sec. 121. Nonrecourse marketing assistance loans and loan deficiency
payments.
Sec. 122. Eligible production.
Sec. 125. Repayment of loans.
Sec. 126. Loan deficiency payments.
Sec. 127. Payments in lieu of loan deficiency payments for grazed
acreage.
Sec. 128. Special marketing loan provisions for upland
cotton.
Subtitle C--Other Commodities
Chapter 1--Dairy
Sec. 131. Milk price support program.
Sec. 132. National dairy program.
Sec. 133. Dairy export incentive and dairy indemnity
programs.
Sec. 134. Fluid milk promotion.
Sec. 135. Dairy product mandatory reporting.
Sec. 136. Funding of dairy promotion and research
program.
Chapter 2--Sugar
Sec. 142. Storage facility loans.
Sec. 143. Flexible marketing allotments for sugar.
Sec. 144. Reallocation of sugar quota.
Chapter 3--Peanuts
Sec. 151. Peanut program.
Sec. 152. Termination of marketing quotas for peanuts and
compensation to peanut quota holders.
Subtitle D--Administration
Sec. 161. Marketing orders for caneberries.
Sec. 162. Reserve stock level.
Sec. 163. Farm reconstitutions.
Sec. 164. Adjustment authority related to Uruguay Round
compliance.
Sec. 165. Suspension of permanent price support
authority.
Sec. 166. Commodity purchases.
Sec. 167. Hard white wheat incentive payments.
Sec. 168. Livestock assistance program.
Sec. 169. Payment limitations; nutrition and commodity
programs.
Sec. 170. Restriction of commodity and crop insurance payments,
loans, and benefits to previously cropped land; food stamp program for
certain qualified aliens.
Sec. 171. Reduction of commodity benefits to improve nutrition
assistance.
Sec. 172. Reports on equitable relief and misaction-misinformation
requests.
Sec. 173. Estimates of net farm income.
Sec. 174. Commodity Credit Corporation inventory.
Sec. 175. Agricultural producers supplemental payments and
assistance.
Subtitle E--Payment Limitation Commission
Sec. 181. Establishment of Commission.
Sec. 184. Commission personnel matters.
Sec. 185. Federal Advisory Committee Act.
Sec. 187. Termination of Commission.
Subtitle F--Emergency Agriculture Assistance
Sec. 191. Income loss assistance.
Sec. 192. Livestock assistance program.
Sec. 193. Market loss assistance for apple producers.
Sec. 194. Commodity Credit Corporation.
Sec. 195. Administrative expenses.
Sec. 197. Emergency requirement.
TITLE II--CONSERVATION
Subtitle A--Conservation Security
Sec. 201. Conservation security program.
Sec. 203. Partnerships and cooperation.
Sec. 204. Administrative requirements for conservation
programs.
Sec. 205. Reform and assessment of conservation programs.
Sec. 206. Conservation security program regulations.
Sec. 207. Conforming amendments.
Subtitle B--Program Extensions
Sec. 211. Comprehensive conservation enhancement program.
Sec. 212. Conservation reserve program.
Sec. 213. Environmental quality incentives program.
Sec. 214. Wetlands reserve program.
Sec. 215. Water conservation.
Sec. 216. Resource conservation and development program.
Sec. 217. Wildlife habitat incentive program.
Sec. 218. Farmland protection program.
Sec. 219. Grassland reserve program.
Sec. 220. State technical committees.
Sec. 221. Use of symbols, slogans, and logos.
Subtitle C--Organic Farming
Sec. 231. Organic Agriculture Research Trust Fund.
Sec. 232. Establishment of National Organic Research Endowment
Institute.
Subtitle D--Regional Equity
Sec. 241. Allocation of conservation funds by State.
Subtitle E--Miscellaneous
Sec. 261. Cranberry acreage reserve program.
TITLE III--TRADE
Subtitle A--Agricultural Trade Development and Assistance Act of 1954
and Related Statutes
Sec. 301. United States policy.
Sec. 302. Provision of agricultural commodities.
Sec. 303. Generation and use of currencies by private voluntary
organizations and cooperatives.
Sec. 304. Levels of assistance.
Sec. 305. Food Aid Consultative Group.
Sec. 306. Maximum level of expenditures.
Sec. 307. Administration.
Sec. 308. Assistance for stockpiling and rapid transportation,
delivery, and distribution of shelf-stable prepackaged foods.
Sec. 309. Pilot emergency relief program to provide live lamb to
Afghanistan.
Sec. 310. Sale procedure.
Sec. 311. Prepositioning.
Sec. 312. Expiration date.
Sec. 313. Micronutrient fortification program.
Sec. 314. John Ogonowski Farmer-to-Farmer Program.
Subtitle B--Agricultural Trade Act of 1978
Sec. 321. Export credit guarantee program.
Sec. 322. Market access program.
Sec. 323. Export enhancement program.
Sec. 324. Foreign market development cooperator program.
Sec. 325. Food for progress and education programs.
Sec. 326. Exporter assistance initiative.
Subtitle C--Miscellaneous Agricultural Trade Provisions
Sec. 331. Bill Emerson Humanitarian Trust.
Sec. 332. Emerging markets.
Sec. 333. Biotechnology and agricultural trade program.
Sec. 334. Surplus commodities for developing or friendly
countries.
Sec. 335. Agricultural trade with Cuba.
Sec. 336. Sense of Congress concerning agricultural
trade.
Sec. 337. Report on use of perishable commodities.
Sec. 338. Sense of Senate concerning foreign assistance
programs.
TITLE IV--NUTRITION PROGRAMS
Subtitle A--Food Stamp Program
Sec. 411. Encouragement of payment of child support.
Sec. 412. Simplified definition of income.
Sec. 413. Increase in benefits to households with
children.
Sec. 414. Simplified determination of housing costs.
Sec. 415. Simplified utility allowance.
Sec. 416. Simplified procedure for determination of earned
income.
Sec. 417. Simplified determination of deductions.
Sec. 418. Simplified definition of resources.
Sec. 419. Alternative issuance systems in disasters.
Sec. 420. State option to reduce reporting requirements.
Sec. 421. Benefits for adults without dependents.
Sec. 422. Preservation of access to electronic benefits.
Sec. 423. Cost neutrality for electronic benefit transfer
systems.
Sec. 424. Alternative procedures for residents of certain group
facilities.
Sec. 425. Redemption of benefits through group living
arrangements.
Sec. 426. Availability of food stamp program applications on the
Internet.
Sec. 427. Simplified determinations of continuing
eligibility.
Sec. 428. Clearinghouse for successful nutrition education
efforts.
Sec. 429. Transitional food stamps for families moving from
welfare.
Sec. 430. Delivery to retailers of notices of adverse
action.
Sec. 431. Reform of quality control system.
Sec. 432. Improvement of calculation of State performance
measures.
Sec. 433. Bonuses for States that demonstrate high
performance.
Sec. 434. Employment and training program.
Sec. 435. Reauthorization of food stamp program and food
distribution program on Indian reservations.
Sec. 436. Coordination of program information efforts.
Sec. 437. Expanded grant authority.
Sec. 438. Access and outreach pilot projects.
Sec. 439. Consolidated block grants and administrative
funds.
Sec. 440. Assistance for community food projects.
Sec. 441. Availability of commodities for the emergency food
assistance program.
Sec. 442. Use of approved food safety technology.
Sec. 443. Innovative programs for addressing common community
problems.
Sec. 444. Report on use of electronic benefit transfer
systems.
Sec. 445. Vitamin and mineral supplements.
Subtitle B--Miscellaneous Provisions
Sec. 451. Reauthorization of commodity programs.
Sec. 452. Partial restoration of benefits to legal
immigrants.
Sec. 453. Commodities for school lunch programs.
Sec. 454. Eligibility for free and reduced price meals.
Sec. 455. Eligibility for assistance under the special supplemental
nutrition program for women, infants, and children.
Sec. 456. Report on conversion of WIC program into an individual
entitlement program.
Sec. 457. Commodity donations.
Sec. 458. Purchases of locally produced foods.
Sec. 459. Seniors farmers' market nutrition program.
Sec. 460. Farmers' market nutrition program.
Sec. 461. Fruit and vegetable pilot program.
Sec. 462. Congressional Hunger Fellows Program.
Sec. 463. Nutrition information and awareness pilot
program.
Sec. 464. Effective date.
TITLE V--CREDIT
Subtitle A--Farm Ownership Loans
Sec. 502. Financing of bridge loans.
Sec. 503. Limitations on amount of farm ownership loans.
Sec. 504. Joint financing arrangements.
Sec. 505. Guarantee percentage for beginning farmers and
ranchers.
Sec. 506. Guarantee of loans made under State beginning farmer or
rancher programs.
Sec. 507. Down payment loan program.
Sec. 508. Beginning farmer and rancher contract land sales
program.
Subtitle B--Operating Loans
Sec. 512. Amount of guarantee of loans for tribal farm operations;
waiver of limitations for tribal farm operations and other farm
operations.
Subtitle C--Administrative Provisions
Sec. 521. Eligibility of limited liability companies for farm
ownership loans, farm operating loans, and emergency loans.
Sec. 522. Debt settlement.
Sec. 523. Temporary authority to enter into contracts; private
collection agencies.
Sec. 524. Interest rate options for loans in servicing.
Sec. 525. Annual review of borrowers.
Sec. 526. Simplified loan applications.
Sec. 527. Inventory property.
Sec. 529. Loan authorization levels.
Sec. 530. Interest rate reduction program.
Sec. 531. Options for satisfaction of obligation to pay recapture
amount for shared appreciation agreements.
Sec. 532. Waiver of borrower training certification
requirement.
Sec. 533. Annual review of borrowers.
Subtitle D--Farm Credit
Sec. 541. Repeal of burdensome approval requirements.
Sec. 542. Banks for cooperatives.
Sec. 543. Insurance Corporation premiums.
Sec. 544. Board of Directors of the Federal Agricultural Mortgage
Corporation.
Subtitle E--General Provisions
Sec. 551. Inapplicability of finality rule.
Sec. 552. Technical amendments.
Sec. 553. Effective date.
TITLE VI--RURAL DEVELOPMENT
Subtitle A--Empowerment of Rural America
Sec. 601. National Rural Cooperative and Business Equity
Fund.
Sec. 602. Rural business investment program.
Sec. 603. Full funding of pending rural development loan and grant
applications.
Sec. 604. Rural Endowment Program.
Sec. 605. Enhancement of access to broadband service in rural
areas.
Sec. 606. Value-added agricultural product market development
grants.
Sec. 607. National Rural Development Information
Clearinghouse.
Subtitle B--National Rural Development Partnership
Sec. 612. National Rural Development Partnership.
Subtitle C--Consolidated Farm and Rural Development Act
Sec. 621. Water or waste disposal grants.
Sec. 622. Rural business opportunity grants.
Sec. 623. Rural water and wastewater circuit rider
program.
Sec. 624. Multijurisdictional regional planning
organizations.
Sec. 625. Certified nonprofit organizations sharing
expertise.
Sec. 626. Loan guarantees for certain rural development
loans.
Sec. 627. Rural firefighters and emergency personnel grant
program.
Sec. 628. Tribal college and university essential community
facilities.
Sec. 629. Emergency community water assistance grant
program.
Sec. 630. Water and waste facility grants for Native American
tribes.
Sec. 631. Water systems for rural and native villages in
Alaska.
Sec. 632. Rural business enterprise grants.
Sec. 633. Rural cooperative development grants.
Sec. 634. Grants to broadcasting systems.
Sec. 635. Business and industry loan modifications.
Sec. 636. Value-added intermediary relending program.
Sec. 637. Use of rural development loans and grants for other
purposes.
Sec. 638. Simplified application forms for loan
guarantees.
Sec. 639. Definition of rural and rural area.
Sec. 640. Rural entrepreneurs and microenterprise assistance
program.
Sec. 642. Children's day care facilities.
Sec. 643. Rural telework.
Sec. 644. Historic barn preservation.
Sec. 645. Grants for emergency weather radio
transmitters.
Sec. 646. Grants for training farm workers.
Sec. 647. Delta Regional Authority.
Sec. 648. SEARCH grants for small communities.
Sec. 649. Northern Great Plains Regional Authority.
Subtitle D--Food, Agriculture, Conservation, and Trade Act of
1990
Sec. 651. Alternative Agricultural Research and Commercialization
Corporation.
Sec. 652. Telemedicine and distance learning services in rural
areas.
Subtitle E--Rural Electrification Act of 1936
Sec. 661. Guarantees for bonds and notes issued for electrification
or telephone purposes.
Sec. 662. Expansion of 911 access.
TITLE VII--AGRICULTURAL RESEARCH, EDUCATION, AND EXTENSION AND RELATED
MATTERS
Subtitle A--National Agricultural Research, Extension, and Teaching
Policy Act of 1977
Sec. 702. National Agricultural Research, Extension, Education, and
Economics Advisory Board.
Sec. 703. Grants and fellowships for food and agricultural sciences
education.
Sec. 704. Competitive research facilities grant program.
Sec. 705. Grants for research on the production and marketing of
alcohols and industrial hydrocarbons from agricultural commodities and
forest products.
Sec. 706. Policy research centers.
Sec. 707. Human nutrition intervention and health promotion research
program.
Sec. 708. Pilot research program to combine medical and agricultural
research.
Sec. 709. Nutrition education program.
Sec. 710. Animal health and disease research programs.
Sec. 711. Research on national or regional problems.
Sec. 712. Education grants programs for Hispanic-serving
institutions.
Sec. 713. Competitive grants for international agricultural science
and education programs.
Sec. 714. Indirect costs.
Sec. 715. Research equipment grants.
Sec. 716. Agricultural research programs.
Sec. 717. Extension education.
Sec. 718. Availability of competitive grant funds.
Sec. 719. Joint requests for proposals.
Sec. 720. Supplemental and alternative crops.
Sec. 722. Rangeland research.
Sec. 723. Biosecurity planning and response programs.
Subtitle B--Food, Agriculture, Conservation, and Trade Act of
1990
Sec. 731. National genetic resources program.
Sec. 732. Biotechnology risk assessment research.
Sec. 733. Rural electronic commerce extension program.
Sec. 734. High-priority research and extension
initiatives.
Sec. 735. Nutrient management research and extension
initiative.
Sec. 736. Organic agriculture research and extension
initiative.
Sec. 737. Agricultural telecommunications program.
Sec. 738. Assistive technology program for farmers with
disabilities.
Subtitle C--Agricultural Research, Extension, and Education Reform Act
of 1998
Sec. 741. Initiative for Future Agriculture and Food
Systems.
Sec. 742. Partnerships for high-value agricultural product quality
research.
Sec. 743. Precision agriculture.
Sec. 744. Biobased products.
Sec. 745. Thomas Jefferson Initiative for Crop
Diversification.
Sec. 746. Integrated research, education, and extension competitive
grants program.
Sec. 747. Support for research regarding diseases of wheat and
barley caused by fusarium graminearum.
Sec. 748. Bovine Johne's disease control program.
Sec. 749. Grants for youth organizations.
Sec. 750. Agricultural biotechnology research and development for
developing countries.
Sec. 750A. Office of Pest Management Policy.
Sec. 750B. Senior Scientific Research Service.
Subtitle D--Land-Grant Funding
Chapter 1--1862 Institutions
Sec. 752. Reporting of technology transfer activities.
Sec. 753. Compliance with multistate and integration
requirements.
Chapter 2--1994 Institutions
Sec. 754. Extension at 1994 institutions.
Sec. 755. Equity in Educational Land-Grant Status Act of
1994.
Sec. 756. Eligibility for integrated grants program.
Chapter 3--1890 Institutions
Sec. 757. Authorization percentages for research and extension
formula funds.
Sec. 759. Reporting of technology transfer activities.
Sec. 760. Grants to upgrade agricultural and food sciences
facilities at 1890 land-grant colleges, including Tuskegee
University.
Sec. 761. National research and training virtual centers.
Sec. 762. Matching funds requirement for research and extension
activities.
Chapter 4--Land-grant Institutions
SUBCHAPTER A--GENERAL
Sec. 771. Priority-setting process.
Sec. 772. Termination of certain schedule A appointments.
SUBCHAPTER B--LAND-GRANT INSTITUTIONS IN INSULAR AREAS
Sec. 775. Distance education grants program for insular area
land-grant institutions.
Sec. 776. Matching requirements for research and extension formula
funds for insular area land-grant institutions.
Subtitle E--Other Laws
Sec. 781. Critical agricultural materials.
Sec. 782. Research facilities.
Sec. 783. Federal agricultural research facilities.
Sec. 784. Competitive, special, and facilities research
grants.
Sec. 785. Risk management education for beginning farmers and
ranchers.
Sec. 787. Carbon cycle research.
Subtitle F--New Authorities
Sec. 792. Regulatory and inspection research.
Sec. 793. Emergency research transfer authority.
Sec. 794. Review of Agricultural Research Service.
Sec. 795. Technology transfer for rural development.
Sec. 796. Beginning farmer and rancher development
program.
Sec. 797. Sense of Congress regarding doubling of funding for
agricultural research.
Sec. 798. Rural policy research.
Sec. 798A. Priority for farmers and ranchers participating in
conservation programs.
Sec. 798B. Organic production and market data
initiatives.
Sec. 798C. Organically produced product research and
education.
Sec. 798D. International organic research collaboration.
Sec. 798E. Report on producers and handlers of organic agricultural
products.
TITLE VIII--FORESTRY
Sec. 801. Office of International Forestry.
Sec. 802. McIntire-Stennis cooperative forestry research
program.
Sec. 803. Sustainable forestry outreach initiative; renewable
resources extension activities.
Sec. 804. Forestry incentives program.
Sec. 805. Sustainable forestry cooperative program.
Sec. 806. Sustainable forest management program.
Sec. 807. Forest Legacy Program.
Sec. 808. Forest fire research centers.
Sec. 809. Wildfire prevention and hazardous fuel purchase
program.
Sec. 810. Chesapeake Bay Watershed Forestry Program.
Sec. 811. Enhanced community fire protection.
Sec. 812. Watershed forestry assistance program.
Sec. 813. Suburban and Community Forestry and Open Space
Initiative.
Sec. 814. General provisions.
Sec. 815. State forest stewardship coordinating
committees.
Sec. 816. USDA National Agroforestry Center.
Sec. 817. Office of Tribal Relations.
Sec. 818. Assistance to tribal governments.
Sec. 819. Sudden oak death syndrome.
Sec. 820. Independent investigation of firefighter
Sec. 821. Adaptive ecosystem restoration of Arizona and New Mexico
forests and woodlands.
TITLE IX--ENERGY
Sec. 902. Consolidated Farm and Rural Development Act.
Sec. 903. Biomass Research and Development Act of 2000.
Sec. 904. Rural Electrification Act of 1936.
Sec. 905. Carbon sequestration demonstration program.
Sec. 906. Sense of Congress concerning national renewable fuels
standard.
Sec. 907. Sense of Congress concerning the bioenergy program of the
Department of Agriculture.
TITLE X--MISCELLANEOUS
Subtitle A--Country of Origin and Quality Grade Labeling
Sec. 1001. Country of origin labeling.
Sec. 1002. Quality grade labeling of imported meat and meat food
products.
Subtitle B--Crop Insurance
Sec. 1011. Equal crop insurance treatment of potatoes and sweet
potatoes.
Sec. 1012. Continuous coverage.
Sec. 1013. Quality loss adjustment procedures.
Sec. 1014. Conservation requirements.
Subtitle C--Animal Health Protection
Sec. 1024. Restriction on importation or entry.
Sec. 1026. Interstate movement.
Sec. 1027. Seizure, quarantine, and disposal.
Sec. 1028. Inspections, seizures, and warrants.
Sec. 1029. Detection, control, and eradication of diseases and
pests.
Sec. 1030. Veterinary accreditation program.
Sec. 1032. Reimbursable agreements.
Sec. 1033. Administration and claims.
Sec. 1036. Regulations and orders.
Sec. 1037. Authorization of appropriations.
Sec. 1038. Repeals and conforming amendments.
Subtitle D--General Provisions
Sec. 1041. Fees for pesticides.
Sec. 1042. Pest management in schools.
Sec. 1043. Prohibition on packers owning, feeding, or controlling
livestock.
Sec. 1044. Packers and stockyards.
Sec. 1045. Unlawful stockyard practices involving nonambulatory
livestock.
Sec. 1046. Arbitration clauses.
Sec. 1047. Cotton classification services.
Sec. 1048. Protection for purchasers of farm products.
Sec. 1049. Improved standards for the care and treatment of certain
animals.
Sec. 1050. Expansion of State marketing programs.
Sec. 1051. Definition of animal under the Animal Welfare
Act.
Sec. 1052. Penalties and foreign commerce provisions of the Animal
Welfare Act.
Sec. 1053. Prohibition on interstate movement of animals for animal
fighting.
Sec. 1054. Outreach and assistance for socially disadvantaged
farmers and ranchers.
Sec. 1055. Wild fish and wild shellfish.
Sec. 1056. Assistant Secretary of Agriculture for Civil
Rights.
Sec. 1057. Transparency and accountability for socially
disadvantaged farmers and ranchers; public disclosure requirements for
county committee elections.
Sec. 1058. Animal enterprise terrorism.
Sec. 1059. Pseudorabies eradication program.
Sec. 1060. Transportation of poultry and other animals.
Sec. 1061. Emergency grants to assist low-income migrant and
seasonal farmworkers.
Sec. 1062. Tree assistance program.
Sec. 1063. Preclearance quarantine inspections.
Sec. 1064. Emergency loans for seed producers.
Sec. 1065. National organic certification cost-share
program.
Sec. 1066. Food Safety Commission.
Sec. 1067. Humane methods of animal slaughter.
Sec. 1068. Penalties for violations of Plant Protection
Act.
Sec. 1069. Connecticut River Atlantic Salmon Commission.
Sec. 1070. Bear protection.
Sec. 1071. Reenactment of family farmer bankruptcy
provisions.
Sec. 1072. Prohibition on packers owning, feeding, or controlling
livestock.
Sec. 1073. Equity and fairness for the promotion of imported Hass
avocados.
Sec. 1074. Sense of the Senate regarding social security surplus
funds.
Sec. 1075. Sense of the Senate on permanent repeal of estate
taxes.
Sec. 1076. Commercial fisheries failure.
Sec. 1077. Review of state meat inspection programs.
Sec. 1078. Agricultural research and technology.
Sec. 1079. Office of Science Technology Policy.
Sec. 1079A. Operation of agricultural and natural resource programs
on tribal trust land.
Sec. 1079B. Assistance for geographically disadvantaged farmers and
ranchers.
Sec. 1079C. Sense of Senate regarding use of the name
ginseng.
Sec. 1079D. Adjusted gross revenue insurance pilot
program.
Sec. 1079E. Pasteurization.
Subtitle E--Studies and Reports
Sec. 1081. Report on pouched and canned salmon.
Sec. 1082. Settlement agreement report.
Sec. 1083. Report on genetically modified pest-protected
plants.
Sec. 1084. Study of creation of litter bank by University of
Arkansas.
Sec. 1085. Study of feasibility of producer indemnification from
Government-caused disasters.
Sec. 1086. Report on sale and use of pesticides for agricultural
uses.
Sec. 1087. Report on rats, mice, and birds.
Sec. 1088. Task Force on National Institutes for Plant and
Agricultural Sciences.
Subtitle F--Organic Products Promotion
Sec. 1093. Issuance of orders.
Sec. 1094. Required terms in order.
Sec. 1095. Permissive terms in order.
Sec. 1098. Petition and review of orders.
Sec. 1098B. Investigations and power to subpoena.
Sec. 1098C. Suspension or termination.
Sec. 1098D. Amendments to orders.
Sec. 1098E. Effect on other laws.
Sec. 1098G. Authorization of appropriations.
Subtitle G--Administration
Sec. 1099A. Effect of amendments.
Sec. 1099B. Commodity Credit Corporation funding.
TITLE I--COMMODITY PROGRAMS
SEC. 101. DEFINITIONS.
Section 102 of the Federal Agriculture Improvement and Reform Act of
1996 (7 U.S.C. 7202) is amended to read as follows:
`SEC. 102. DEFINITIONS.
`(1) AGRICULTURAL ACT OF 1949- Except in section 171, the term
`Agricultural Act of 1949' means the Agricultural Act of 1949 (7 U.S.C. 1421
et seq.), as in effect prior to the suspensions under section
171(b)(1).
`(2) CONSIDERED PLANTED- The term `considered planted' means any
acreage on the farm that--
`(A) producers on a farm were prevented from planting to a crop
because of drought, flood, or other natural disaster, or other condition
beyond the control of the eligible owners and producers on the farm, as
determined by the Secretary; and
`(B) was not planted to another contract commodity (other than a
contract commodity produced under an established practice of double
cropping).
`(3) CONTRACT- The term `contract' means a contract entered into
under subtitle B.
`(4) CONTRACT ACREAGE- The term `contract acreage' means the
contract acreage determined under section 111(f).
`(5) CONTRACT COMMODITY- The term `contract commodity' means wheat,
corn, grain sorghum, barley, oats, upland cotton, rice, and
oilseeds.
`(6) CONTRACT PAYMENT- The term `contract payment' means a payment
made under subtitle B pursuant to a contract.
`(7) DEPARTMENT- The term `Department' means the Department of
Agriculture.
`(8) EXTRA LONG STAPLE COTTON- The term `extra long staple cotton'
means cotton that--
`(A) is produced from pure strain varieties of the Barbadense
species or any hybrid thereof, or other similar types of extra long staple
cotton, designated by the Secretary, having characteristics needed for
various end uses for which United States upland cotton is not suitable and
grown in irrigated cotton-growing regions of the United States designated
by the Secretary or other areas designated by the Secretary as suitable
for the production of the varieties or types; and
`(B) is ginned on a roller-type gin or, if authorized by the
Secretary, ginned on another type gin for experimental
purposes.
`(9) LOAN COMMODITY- The term `loan commodity' means wheat, corn,
grain sorghum, barley, oats, upland cotton, extra long staple cotton, rice,
oilseeds, wool, honey, dry peas, lentils, and chickpeas.
`(10) OILSEED- The term `oilseed' means a crop of soybeans,
sunflower seed, rapeseed, canola, safflower, flaxseed, mustard seed, and, if
designated by the Secretary, other oilseeds.
`(11) PAYMENT YIELD- The term `payment yield' means a payment yield
determined under section 111(g).
`(A) IN GENERAL- The term `producer' means an owner, operator,
landlord, tenant, or sharecropper that--
`(i) shares in the risk of producing a crop;
and
`(ii) is entitled to share in the crop available for marketing
from the farm, or would have shared had the crop been
produced.
`(B) HYBRID SEED- In determining whether a grower of hybrid seed
is a producer, the Secretary shall not take into consideration the
existence of a hybrid seed contract.
`(13) SECRETARY- The term `Secretary' means the Secretary of
Agriculture.
`(14) STATE- The term `State' means--
`(B) the District of Columbia;
`(C) the Commonwealth of Puerto Rico; and
`(D) any other territory or possession of the United
States.
`(15) UNITED STATES- The term `United States', when used in a
geographical sense, means all of the States.'.
Subtitle A--Direct and Counter-Cyclical Payments
SEC. 111. DIRECT AND COUNTER-CYCLICAL PAYMENTS.
Sections 111 through 114 of the Federal Agriculture Improvement and
Reform Act of 1996 (7 U.S.C. 7211 through 7214) are amended to read as
follows:
`SEC. 111. AUTHORIZATION FOR CONTRACTS.
`(a) IN GENERAL- The Secretary shall offer to enter into a contract
with an eligible owner or producer described in subsection (b) on a farm
containing eligible cropland under which the eligible owner or producer will
receive direct payments and counter-cyclical payments under sections 113 and
114, respectively.
`(b) ELIGIBLE OWNERS AND PRODUCERS-
`(1) IN GENERAL- Subject to paragraphs (2) and (3), an owner or
producer on a farm shall be eligible to enter into a contract.
`(A) SHARE-RENT TENANTS- A producer on eligible cropland that is a
tenant with a share-rent lease of the eligible cropland, regardless of the
length of the lease, shall be eligible to enter into a contract, if the
owner of the eligible cropland enters into the same
contract.
`(i) CONTRACTS WITH LONG-TERM LEASES- A producer on eligible
cropland that cash rents the eligible cropland under a lease expiring on
or after the termination of the contract shall be eligible to enter into
a contract.
`(ii) CONTRACTS WITH SHORT-TERM LEASES-
`(I) IN GENERAL- A producer that cash rents the eligible
cropland under a lease expiring before the termination of the contract
shall be eligible to enter into a contract.
`(II) OWNER'S CONTRACT INTEREST- The owner of the eligible
cropland may also enter into the same contract.
`(III) CONSENT OF OWNER- If the producer elects to enroll less
than 100 percent of the eligible cropland in the contract, the consent
of the owner shall be required for a valid
contract.
`(A) IN GENERAL- An owner of eligible cropland that cash rents the
eligible cropland under a lease term that expires before the end of 2006
crop year shall be eligible to enter into a contract if the tenant
declines to enter into the contract.
`(B) CONTRACT PAYMENTS- In the case of an owner covered by
subparagraph (A), the Secretary shall not make contract payments to the
owner under the contract until the lease held by the tenant
terminates.
`(c) COMPLIANCE WITH CERTAIN REQUIREMENTS- Under the terms of a
contract, the owner or producer shall agree, in exchange for annual contract
payments--
`(1) to comply with applicable highly erodible land conservation
requirements under subtitle B of title XII of the Food Security Act of 1985
(16 U.S.C. 3811 et seq.);
`(2) to comply with applicable wetland conservation requirements
under subtitle C of title XII of that Act (16 U.S.C. 3821 et
seq.);
`(3) to comply with the planting flexibility requirements of section
118; and
`(4) to use a quantity of land on the farm equal to the contract
acreage, for an agricultural or conserving use or related activity, and not
for a nonagricultural commercial or industrial use, as determined by the
Secretary.
`(d) PROTECTION OF INTERESTS OF CERTAIN PRODUCERS-
`(1) TENANTS AND SHARECROPPERS- In carrying out this subtitle, the
Secretary shall provide adequate safeguards to protect the interests of
tenants and sharecroppers.
`(2) SHARING OF PAYMENTS- The Secretary shall provide for the
sharing of contract payments among the eligible producers on a farm on a
fair and equitable basis.
`(1) IN GENERAL- Land shall be considered to be cropland eligible
for coverage under a contract only if the land--
`(A) has with respect to a contract commodity--
`(i) contract acreage attributable to the land;
and
`(ii) a payment yield; or
`(B) was subject to a conservation reserve contract under section
1231 of the Food Security Act of 1985 (16 U.S.C. 3831) with a term that
expired, or was voluntarily terminated, on or after the date of enactment
of this paragraph.
`(2) QUANTITY OF ELIGIBLE CROPLAND COVERED BY CONTRACT- An eligible
owner or producer may enroll as contract acreage under this subtitle all or
a portion of the eligible cropland on the farm.
`(3) VOLUNTARY REDUCTION IN CONTRACT ACREAGE- An eligible owner or
producer that enters into a contract may subsequently reduce the quantity of
contract acreage covered by the contract.
`(1) IN GENERAL- Subject to subsection (h), for the purpose of
making direct payments and counter-cyclical payments to eligible owners and
producers on a farm, the Secretary shall provide the eligible owners and
producers on the farm with an opportunity to elect 1 of the following
methods as the method by which the contract acreages for the 2002 through
2006 crops of all contract commodities for a farm are determined:
`(A) The 4-year average of acreage planted or considered planted
to a contract commodity for harvest, grazing, haying, silage, or other
similar purposes during each of the 1998 through 2001 crop
years.
`(i) the contract acreage (as defined in section 102 (as in
effect before the amendment made by section 101 of the Agriculture,
Conservation, and Rural Enhancement Act of 2002)) that would have been
used by the Secretary to calculate the payment for fiscal year 2002
under such section 102 for the contract commodity on the farm;
and
`(ii) the 4-year average determined under subparagraph (A) for
each oilseed produced on the farm.
`(C) In the case of land described in section 112(a)(3), land with
eligible base, as determined by the Secretary.
`(2) PREVENTION OF EXCESS CONTRACT ACREAGES-
`(A) REQUIRED REDUCTION- If the total of the contract acreages for
a farm, together with the acreage described in subparagraph (C), exceeds
the actual cropland acreage of the farm, the Secretary shall reduce the
quantity of contract acreages for 1 or more contract commodities for the
farm or peanut acres as necessary so that the total of the contract
acreages and acreage described in subparagraph (C) does not exceed the
actual cropland acreage of the farm.
`(B) SELECTION OF ACRES- The Secretary shall give the eligible
owners and producers on the farm the opportunity to select the contract
acreages or peanut acres against which the reduction will be
made.
`(C) OTHER ACREAGE- For purposes of subparagraph (A), the
Secretary shall include--
`(i) any peanut acres for the farm under chapter 3 of subtitle
D;
`(ii) any acreage on the farm enrolled in the conservation
reserve program or wetlands reserve program under chapter 1 of subtitle
D of title XII of the Food Security Act of 1985 (16 U.S.C. 3830 et
seq.); and
`(iii) any other acreage on the farm enrolled in a voluntary
Federal conservation program under which production of any agricultural
commodity is prohibited.
`(D) DOUBLE-CROPPED ACREAGE- In applying subparagraph (A), the
Secretary shall take into account additional acreage as a result of an
established double-cropping history on a farm, as determined by the
Secretary.
`(1) IN GENERAL- Subject to paragraph (2) and subsection (h), an
eligible owner or producer that has entered into a contract under this
subtitle may make a 1-time election to have the payment yield for a payment
for each of the 2002 through 2006 crops of all contract commodities for a
farm be equal to--
`(A) an amount that is the greater of--
`(i) the average of the yield per harvested acre for the crop of
the contract commodity for the farm for the 1998 through 2001 crop
years, excluding--
`(I) any crop year for which the producers on the farm did not
plant the contract commodity; and
`(II) at the option of the producers on the farm, 1 additional
crop year; or
`(ii) the farm program payment yield described in subparagraph
(B); or
`(B) the farm program payment yield established for the 1995 crop
of a contract commodity under section 505 of the Agricultural Act of 1949
(7 U.S.C. 1465), as adjusted by the Secretary to account for any
additional yield payments made with respect to that crop under section
505(b)(2) of that Act.
`(2) ASSIGNED YIELDS- In the case of a farm for which yield records
are unavailable for a contract commodity (including land of a farm that is
devoted to an oilseed under a former conservation reserve contract described
in section 112(a)(3)), the Secretary shall establish an appropriate payment
yield for the contract commodity on the farm taking in consideration the
payment yields applicable to the contract commodity under paragraph (1) for
similar farms in the area, taking into consideration the yield election for
the farm under subsection (h).
`(h) ELIGIBLE OWNER AND PRODUCER ELECTION OPTIONS-
`(1) IN GENERAL- In making elections under subsections (f) and (g),
eligible owners and producers on a farm shall elect to have--
`(A)(i) contract acreage for the farm determined under subsection
(f)(1)(A); and
`(ii) payment yields determined under subsection (g)(1)(A);
or
`(B)(i) contract acreage for the farm determined under subsection
(f)(1)(B); and
`(ii) payment yields determined under--
`(I) in the case of contract commodities other than oilseeds,
subsection (g)(1)(B); and
`(II) in the case of oilseeds, subsection
(g)(1)(A).
`(2) SINGLE ELECTION; TIME FOR ELECTION-
`(A) SINGLE ELECTION- The eligible owners and producers on a farm
shall have 1 opportunity to make the election described in paragraph
(1).
`(B) TIME FOR ELECTION- Subject to section 112(a)(3), not later
than 180 days after the date of enactment of this subsection, the eligible
owners and producers on a farm shall notify the Secretary of the election
made by the eligible owners and producers on the farm under paragraph
(1).
`(3) EFFECT OF FAILURE TO MAKE ELECTION- If the producers on a farm
fail to make the election under paragraph (1), or fail to timely notify the
Secretary of the selected option as required by paragraph (2), the eligible
owners and producers on the farm shall be deemed to have made the election
described in paragraph (1)(B) for the purpose of determining the contract
acreages for all contract commodities on the farm.
`(4) APPLICATION OF ELECTION TO ALL CONTRACT COMMODITIES- The
election made under paragraph (1) or deemed to be made under paragraph (3)
with respect to a farm shall apply to all of the contract commodities
produced on the farm.
`SEC. 112. ELEMENTS OF CONTRACTS.
`(a) TIME FOR CONTRACTING-
`(1) COMMENCEMENT- To the extent practicable, the Secretary shall
commence entering into contracts not later than 45 days after the date of
enactment of the Agriculture, Conservation, and Rural Enhancement Act of
2002.
`(2) DEADLINE- Except as provided in paragraph (3), the Secretary
may not enter into a contract after the date that is 180 days after the date
of enactment of that Act.
`(3) CONSERVATION RESERVE LAND-
`(A) IN GENERAL- At the beginning of each fiscal year, the
Secretary shall allow an eligible owner or producer on a farm covered by a
conservation reserve contract entered into under section 1231 of the Food
Security Act of 1985 (16 U.S.C. 3831) that terminated after the date
specified in paragraph (2) to enter into or expand a contract to cover the
eligible cropland of the farm that was subject to the former conservation
reserve contract.
`(B) ELECTION- For the fiscal year and crop year for which a
contract acreage adjustment under subparagraph (A) is first made, the
eligible owners and producers on the farm shall elect to
receive--
`(i) direct payments and counter-cyclical payments under
sections 113 and 114, respectively, with respect to the acreage added to
the farm under this paragraph; or
`(ii) a prorated payment under the conservation reserve
contract.
`(b) DURATION OF CONTRACT-
`(1) BEGINNING DATE- The term of a contract shall begin
with--
`(A) the 2002 crop of a contract commodity; or
`(B) in the case of acreage that was subject to a conservation
reserve contract described in subsection (a)(3), the date the contract was
entered into or expanded to cover the acreage.
`(2) ENDING DATE- Subject to sections 116 and 117, the term of a
contract shall extend through the 2006 crop, unless earlier terminated by
the eligible owners or producers on a farm.
`SEC. 113. DIRECT PAYMENTS.
`(a) IN GENERAL- For each of the 2002 through 2006 fiscal years, the
Secretary shall make direct payments available to eligible owners and
producers on a farm that have entered into a contract to receive payments
under this section.
`(b) PAYMENT AMOUNT- The amount of a direct payment to be paid to the
eligible owners and producers on a farm for a contract commodity for a fiscal
year under this section shall be obtained by multiplying--
`(1) the payment rate for the contract commodity specified in
subsection (c);
`(2) the contract acreage attributable to the contract commodity for
the farm; and
`(3) the payment yield for the contract commodity for the
farm.
`(c) PAYMENT RATE- The payment rates used to make direct payments with
respect to contract commodities for a fiscal year under this section are as
follows:
`(1) WHEAT- In the case of wheat:
`(A) For each of fiscal years 2002 and 2003, $0.450 per
bushel.
`(B) For each of fiscal years 2004 and 2005, $0.225 per
bushel.
`(C) For fiscal year 2006, $0.113 per bushel.
`(2) CORN- In the case of corn:
`(A) For each of fiscal years 2002 and 2003, $0.270 per
bushel.
`(B) For each of fiscal years 2004 and 2005, $0.135 per
bushel.
`(C) For fiscal year 2006, $0.068 per bushel.
`(3) GRAIN SORGHUM- In the case of grain sorghum:
`(A) For the 2002 fiscal year, $0.310 per bushel.
`(B) For the 2003 fiscal year, $0.270 per bushel.
`(C) For each of fiscal years 2004 and 2005, $0.135 per
bushel.
`(D) For fiscal year 2006, $0.068 per bushel.
`(4) BARLEY- In the case of barley:
`(A) For each of fiscal years 2002 and 2003, $0.200 per
bushel.
`(B) For each of fiscal years 2004 and 2005, $0.100 per
bushel.
`(C) For fiscal year 2006, $0.050 per bushel.
`(5) OATS- In the case of oats:
`(A) For each of fiscal years 2002 and 2003, $0.050 per
bushel.
`(B) For each of fiscal years 2004 and 2005, $0.025 per
bushel.
`(C) For fiscal year 2006, $0.013 per bushel.
`(6) UPLAND COTTON- In the case of upland cotton:
`(A) For each of fiscal years 2002 and 2003, $0.130 per
pound.
`(B) For each of fiscal years 2004 and 2005, $0.065 per
pound.
`(C) For fiscal year 2006, $0.0325 per pound.
`(7) RICE- In the case of rice:
`(A) For each of fiscal years 2002 and 2003, $2.450 per
hundredweight.
`(B) For each of fiscal years 2004 and 2006, $2.40 per
hundredweight.
`(8) SOYBEANS- In the case of soybeans:
`(A) For each of fiscal years 2002 and 2003, $0.550 per
bushel.
`(B) For each of fiscal years 2004 and 2005, $0.275 per
bushel.
`(C) For fiscal year 2006, $0.138 per bushel.
`(9) OILSEEDS (OTHER THAN SOYBEANS)- In the case of oilseeds (other
than soybeans):
`(A) For each of fiscal years 2002 and 2003, $0.010 per
pound.
`(B) For each of fiscal years 2004 and 2005, $0.005 per
pound.
`(C) For fiscal year 2006, $0.0025 per pound.
`(1) INITIAL PAYMENT- At the option of the eligible owners and
producers on a farm, the Secretary shall pay 50 percent of the direct
payment for a crop of a contract commodity for the eligible owners and
producers on the farm on or after December 1 of the fiscal year, as
determined by the Secretary.
`(2) FINAL PAYMENT- The Secretary shall pay the final amount of the
direct payment that is payable to the eligible owners and producers on a
farm for a contract commodity under subsection (a) (less the amount of any
initial payment made to the producers on the farm of the contract commodity
under paragraph (1)) not later than September 30 of the fiscal year, as
determined by the Secretary.
`SEC. 114. COUNTER-CYCLICAL PAYMENTS.
`(a) IN GENERAL- For each of the 2002 through 2006 crop years, the
Secretary shall make counter-cyclical payments to eligible owners and
producers on a farm of each contract commodity that have entered into a
contract to receive payments under this section.
`(b) PAYMENT AMOUNT- The amount of the payments made to eligible
owners and producers on a farm for a crop of a contract commodity under this
section shall equal the amount obtained by multiplying--
`(1) the payment rate for the contract commodity specified in
subsection (c);
`(2) the contract acreage attributable to the contract commodity for
the farm; and
`(3) the payment yield for the contract commodity for the
farm.
`(1) IN GENERAL- The payment rate for a crop of a contract commodity
under subsection (b)(1) shall equal the difference between--
`(A) the income protection price for the contract commodity
established under paragraph (2); and
`(I) the average price of the contract commodity during the
first 5 months of the marketing year of the contract commodity, as
determined by the Secretary; and
`(II) the loan rate for the crop of the contract commodity
under section 132; and
`(ii) the direct payment for the contract commodity under
section 113 for the fiscal year that precedes the date of a payment
under this section.
`(2) INCOME PROTECTION PRICES- The income protection prices for
contract commodities under paragraph (1)(A) are as follows:
`(A) Wheat, $3.45 per bushel.
`(B) Corn, $2.35 per bushel.
`(C) Grain sorghum, $2.35 per bushel.
`(D) Barley, $2.20 per bushel.
`(E) Oats, $1.55 per bushel.
`(F) Upland cotton, $0.680 per pound.
`(G) Rice, $9.30 per hundredweight.
`(H) Soybeans, $5.75 per bushel.
`(I) Oilseeds (other than soybeans), $0.105 per
pound.
`(d) TIME FOR PAYMENT- The Secretary shall make counter-cyclical
payments for each of the 2002 through 2006 crop years not later than 190 days
after the beginning of marketing year for the crop of the contract
commodity.'.
SEC. 112. VIOLATIONS OF CONTRACTS.
Section 116 of the Federal Agriculture Improvement and Reform Act of
1996 (7 U.S.C. 7216) is amended--
(1) in the first sentence of subsection (a)--
(A) by striking `subsection (b)' and inserting `subsections (b)
and (e)'; and
(B) by striking `section 111(a)' and inserting `this
subtitle';
(2) in subsection (b), by striking `If' and inserting `Except as
provided in subsection (e), if'; and
(3) by adding at the end the following:
`(e) PLANTING FLEXIBILITY- In the case of a first violation of section
118(b) by an eligible owner or producer that has entered into a contract and
that acted in good faith, in lieu of terminating the contract under subsection
(a), the Secretary shall require a refund or reduce a future contract payment
under subsection (b) in an amount that does not exceed twice the amount
otherwise payable under the contract on the number of acres involved in the
violation.'.
SEC. 113. PLANTING FLEXIBILITY.
Section 118(b) of the Federal Agriculture Improvement and Reform Act
of 1996 (7 U.S.C. 7218(b)) is amended--
(1) by striking paragraph (1) and inserting the
following:
`(1) LIMITATIONS- The planting of the following agricultural
commodities shall be prohibited on contract acreage:
`(B) Vegetables (other than lentils, mung beans, dry peas, and
chickpeas).
`(C) In the case of the 2003 and subsequent crops of an
agricultural commodity, wild rice.'; and
(2) in paragraph (2)(C), by striking `1991 through 1995' and
inserting `1996 through 2001'.
SEC. 114. PILOT PROGRAM FOR FARM COUNTER-CYCLICAL SAVINGS
ACCOUNTS.
Subtitle B of title I of the Federal Agriculture Improvement and
Reform Act of 1996 (7 U.S.C. 7211 et seq.) is amended by adding at the end the
following:
`SEC. 119. PILOT PROGRAM FOR FARM COUNTER-CYCLICAL SAVINGS
ACCOUNTS.
`(a) DEFINITIONS- In this section:
`(1) ADJUSTED GROSS REVENUE- The term `adjusted gross revenue' means
the adjusted gross income for all agricultural enterprises of a producer in
a year, excluding revenue earned from nonagricultural sources, as determined
by the Secretary--
`(A) by taking into account gross receipts from the sale of crops
and livestock on all agricultural enterprises of the producer, including
insurance indemnities resulting from losses in the agricultural
enterprises;
`(B) by including all farm payments paid by the Secretary for all
agricultural enterprises of the producer, including any marketing loan
gains described in section 1001(3)(A) of the Food Security Act of 1985 (7
U.S.C. 1308(3)(A));
`(C) by deducting the cost or basis of livestock or other items
purchased for resale, such as feeder livestock, on all agricultural
enterprises of the producer; and
`(i) a schedule F of the Federal income tax returns of the
producer; or
`(ii) a comparable tax form related to the agricultural
enterprises of the producer, as approved by the
Secretary.
`(2) AGRICULTURAL ENTERPRISE- The term `agricultural enterprise'
means the production and marketing of all agricultural commodities
(including livestock but excluding tobacco) on a farm or ranch.
`(3) AVERAGE ADJUSTED GROSS REVENUE- The term `average adjusted
gross revenue' means--
`(A) the average of the adjusted gross revenue of a producer for
each of the preceding 5 taxable years; or
`(B) in the case of a beginning farmer or rancher or other
producer that does not have adjusted gross revenue for each of the
preceding 5 taxable years, the estimated income of the producer that will
be earned from all agricultural enterprises for the applicable year, as
determined by the Secretary.
`(4) PRODUCER- The term `producer' means an individual or entity, as
determined by the Secretary for an applicable year, that--
`(A) shares in the risk of producing, or provides a material
contribution in producing, an agricultural commodity for the applicable
year;
`(B) has a substantial beneficial interest in the agricultural
enterprise in which the agricultural commodity is produced;
`(C)(i) during each of the preceding 5 taxable years, has
filed--
`(I) a schedule F of the Federal income tax returns;
or
`(II) a comparable tax form related to the agricultural
enterprises of the individual or entity, as approved by the Secretary;
or
`(ii) is a beginning farmer or rancher or other producer that does
not have adjusted gross revenue for each of the preceding 5 taxable years,
as determined by the Secretary; and
`(D)(i) has earned at least $50,000 in average adjusted gross
revenue over the preceding 5 taxable years;
`(ii) is a limited resource farmer or rancher, as determined by
the Secretary; or
`(iii) in the case of a beginning farmer or rancher or other
producer that does not have average adjusted gross revenue for the
preceding 5 taxable years, has at least $50,000 in estimated income from
all agricultural enterprises for the applicable year, as determined by the
Secretary.
`(b) ESTABLISHMENT- For each of fiscal years 2003 through 2005, the
Secretary shall establish a pilot program in 3 States (as determined by the
Secretary) under which a producer may establish a farm counter-cyclical
savings account in the name of the producer in a bank or financial institution
selected by the producer and approved by the Secretary.
`(c) CONTENT OF ACCOUNT- A farm counter-cyclical savings account shall
consist of--
`(1) contributions of the producer; and
`(2) matching contributions of the Secretary.
`(d) PRODUCER CONTRIBUTIONS- A producer may deposit such amounts in
the account of the producer as the producer considers appropriate.
`(e) MATCHING CONTRIBUTIONS-
`(1) IN GENERAL- Subject to paragraphs (2) through (5), the
Secretary shall provide a matching contribution on the amount deposited by
the producer into the account.
`(2) AMOUNT- Subject to paragraph (3), the amount of a matching
contribution that the Secretary shall provide under paragraph (1) shall be
equal to 2 percent of the average adjusted gross revenue of the
producer.
`(3) MAXIMUM CONTRIBUTIONS FOR INDIVIDUAL PRODUCER- The amount of
matching contributions that may be provided by the Secretary for an
individual producer under this subsection shall not exceed $5,000 for any
applicable fiscal year.
`(4) MAXIMUM CONTRIBUTIONS FOR ALL PRODUCERS IN A STATE- The total
amount of matching contributions that may be provided by the Secretary for
all producers in a State under this subsection shall not exceed $4,000,000
for each of fiscal years 2003 through 2005.
`(5) DATE FOR MATCHING CONTRIBUTIONS- The Secretary shall provide
the matching contributions required for a producer under paragraph (1) as of
the date that a majority of the covered commodities grown by the producer
are harvested.
`(f) INTEREST- Funds deposited into the account may earn interest at
the commercial rates provided by the bank or financial institution in which
the Account is established.
`(g) USE- Funds credited to the account--
`(1) shall be available for withdrawal by a producer, in accordance
with subsection (h); and
`(2) may be used for purposes determined by the producer.
`(1) IN GENERAL- Subject to paragraph (2), in any year, a producer
may withdraw funds from the account in an amount that is equal
to--
`(A) 90 percent of average adjusted gross revenue of the producer
for the previous 5 years; minus
`(B) the adjusted gross revenue of the producer in that
year.
`(2) RETIREMENT- A producer that ceases to be actively engaged in
farming, as determined by the Secretary--
`(A) may withdraw the full balance from, and close, the account;
and
`(B) may not establish another account.
`(i) ADMINISTRATION- The Secretary shall administer this section
through the Farm Service Agency and local, county, and area offices of the
Department of Agriculture.'.
Subtitle B--Nonrecourse Marketing Assistance Loans and Loan
Deficiency Payments
SEC. 121. NONRECOURSE MARKETING ASSISTANCE LOANS AND LOAN DEFICIENCY
PAYMENTS.
(a) IN GENERAL- Sections 131(a) and 137 of the Federal Agriculture
Improvement and Reform Act of 1996 (7 U.S.C. 7231(a), 7237) are amended by
striking `2002' each place it appears and inserting `2006'.
(b) UPLAND COTTON- Sections 134(e)(1), 136, and 136A(a) of the Federal
Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7234(e)(1), 7236,
7236a(a)) are amended by striking `2003' each place it appears and inserting
`2007'.
SEC. 122. ELIGIBLE PRODUCTION.
Section 131 of the Federal Agriculture Improvement and Reform Act of
1996 (7 U.S.C. 7231) is amended by striking subsection (b) and inserting the
following:
`(b) ELIGIBLE PRODUCTION- The producers on a farm shall be eligible
for a marketing loan under subsection (a) for any quantity of a loan commodity
produced on the farm.'.
SEC. 123. LOAN RATES.
(a) IN GENERAL- Section 132 of the Federal Agriculture Improvement and
Reform Act of 1996 (7 U.S.C. 7232) is amended to read as follows:
`SEC. 132. LOAN RATES.
`(a) IN GENERAL- Subject to subsection (b), the loan rate for a
marketing assistance loan under section 131 for a loan commodity shall
be--
`(1) in the case of wheat, $3.00 per bushel;
`(2) in the case of corn, $2.08 per bushel;
`(3) in the case of grain sorghum, $2.08 per bushel;
`(4) in the case of barley, $2.00 per bushel;
`(5) in the case of oats, $1.50 per bushel;
`(6) in the case of upland cotton, $0.55 per pound;
`(7) in the case of extra long staple cotton, $0.7965 per
pound;
`(8) in the case of rice, $6.50 per hundredweight;
`(9) in the case of soybeans, $5.20 per bushel;
`(10) in the case of oilseeds (other than soybeans), $0.095 per
pound;
`(11) in the case of graded wool, $1.00 per pound;
`(12) in the case of nongraded wool (including unshorn pelts), $0.40
per pound;
`(13) in the case of honey, $0.60 per pound;
`(14) in the case of dry peas, $6.78 per hundredweight;
`(15) in the case of lentils, $12.79 per hundredweight;
`(16) in the case of large chickpeas, $17.44 per hundredweight;
and
`(17) in the case of small chickpeas, $8.10 per
hundredweight.
`(1) IN GENERAL- The Secretary may make appropriate adjustments in
the loan rates for any loan commodity for differences in grade, type,
quality, location, and other factors.
`(2) MANNER- The adjustments under this subsection shall, to the
maximum extent practicable, be made in such manner that the average loan
rate for the loan commodity will, on the basis of the anticipated incidence
of the factors described in paragraph (1), be equal to the loan rate
provided under this section.'.
(b) CONFORMING AMENDMENT- Section 162 of the Federal Agriculture
Improvement and Reform Act of 1996 (7 U.S.C. 7282) is repealed.
SEC. 124. TERM OF LOANS.
Section 133 of the Federal Agriculture Improvement and Reform Act of
1996 (7 U.S.C. 7233) is amended to read as follows:
`SEC. 133. TERM OF LOANS.
`In the case of each loan commodity, a marketing loan under section
131 shall have a term of 9 months beginning on the first day of the first
month after the month in which the loan is made.'.
SEC. 125. REPAYMENT OF LOANS.
Section 134(a) of the Federal Agriculture Improvement and Reform Act
of 1996 (7 U.S.C. 7234(a)) is amended--
(1) by striking `wheat, corn, grain sorghum, barley, oats, and
oilseeds' and inserting `a loan commodity (other than upland cotton, rice,
and extra long staple cotton)'; and
(A) in subparagraph (C), by striking `and' at the
end;
(B) in subparagraph (D), by striking the period and inserting `;
and'; and
(C) by adding at the end the following:
`(E) minimize discrepancies in marketing loan benefits across
State boundaries and across county boundaries.'.
SEC. 126. LOAN DEFICIENCY PAYMENTS.
Section 135 of the Federal Agriculture Improvement and Reform Act of
1996 (7 U.S.C. 7235) is amended--
(1) by striking subsection (a) and inserting the
following:
`(a) IN GENERAL- The Secretary may make loan deficiency payments
available to producers on a farm that, although eligible to obtain a marketing
assistance loan under section 131 with respect to a loan commodity, agree to
forgo obtaining the loan for the loan commodity in return for payments under
this section.'; and
(2) by striking subsections (e) and (f) and inserting the
following:
`(e) BENEFICIAL INTEREST-
`(1) IN GENERAL- A producer shall be eligible for a payment for a
loan commodity under this section only if the producer has a beneficial
interest in the loan commodity, as determined by the Secretary.
`(2) APPLICATION- The Secretary shall make a payment under this
section to the producers on a farm with respect to a quantity of a loan
commodity as of the earlier of--
`(A) the date on which the producers on the farm marketed or
otherwise lost beneficial interest in the loan commodity, as determined by
the Secretary; or
`(B) the date the producers on the farm request the
payment.
`(3) 2001 CROP- Notwithstanding paragraphs (1) and (2), effective
for the 2001 crop only, if a producer eligible for a payment under this
section loses beneficial interest in the covered commodity, the producer
shall be eligible for the payment determined as of the date the producer
lost beneficial interest in the covered commodity, as determined by the
Secretary.'.
SEC. 127. PAYMENTS IN LIEU OF LOAN DEFICIENCY PAYMENTS FOR GRAZED
ACREAGE.
(a) IN GENERAL- Subtitle C of title I of the Federal Agriculture
Improvement and Reform Act of 1996 (7 U.S.C. 7231 et seq.) is amended by
adding at the end the following:
`SEC. 138. PAYMENTS IN LIEU OF LOAN DEFICIENCY PAYMENTS FOR GRAZED
ACREAGE.
`(a) IN GENERAL- For each crop of wheat, grain sorghum, barley, and
oats, in the case of the producers on a farm that would be eligible for a loan
deficiency payment under section 135 for wheat, grain sorghum, barley, or
oats, but that elects to use acreage planted to the wheat, grain sorghum,
barley, or oats for the grazing of livestock, the Secretary shall make a
payment to the producers on the farm under this section if the producers on
the farm enter into an agreement with the Secretary to forgo any other
harvesting of the wheat, grain sorghum, barley, or oats on the
acreage.
`(b) PAYMENT AMOUNT- The amount of a payment made to the producers on
a farm under this section shall be equal to the amount obtained by
multiplying--
`(1) the loan deficiency payment rate determined under section
135(c) in effect, as of the date of the agreement, for the county in which
the farm is located; by
`(2) the payment quantity obtained by multiplying--
`(A) the quantity of the grazed acreage on the farm with respect
to which the producers on the farm elect to forgo harvesting of wheat,
grain sorghum, barley, or oats; and
`(B) the payment yield for that contract commodity on the
farm.
`(c) TIME, MANNER, AND AVAILABILITY OF PAYMENT-
`(1) TIME AND MANNER- A payment under this section shall be made at
the same time and in the same manner as loan deficiency payments are made
under section 135.
`(2) AVAILABILITY- The Secretary shall establish an availability
period for the payment authorized by this section that is consistent with
the availability period for wheat, grain sorghum, barley, and oats
established by the Secretary for marketing assistance loans authorized by
this subtitle.
`(d) PROHIBITION ON CROP INSURANCE OR NONINSURED CROP ASSISTANCE- The
producers on a farm shall not be eligible for insurance under the Federal Crop
Insurance Act (7 U.S.C. 1501 et seq.) or noninsured crop assistance under
section 196 with respect to a crop of wheat, grain sorghum, barley, or oats
planted on acreage that the producers on the farm elect, in the agreement
required by subsection (a), to use for the grazing of livestock in lieu of any
other harvesting of the crop.'.
SEC. 128. SPECIAL MARKETING LOAN PROVISIONS FOR UPLAND COTTON.
Section 136(a) of the Federal Agriculture Improvement and Reform Act
of 1996 (7 U.S.C. 7236(a)) is amended by adding at the end the
following:
`(4) APPLICATION OF THRESHOLD- During the period beginning on the
date of this paragraph and ending on July 31, 2003, the Secretary shall make
the calculations under paragraphs (1)(A) and (2) and subsection (b)(1)(B)
without regard to the 1.25 cent threshold provided under those paragraphs
and subsection.'.
Subtitle C--Other Commodities
CHAPTER 1--DAIRY
SEC. 131. MILK PRICE SUPPORT PROGRAM.
Section 141 of the Federal Agriculture Improvement and Reform Act of
1996 (7 U.S.C. 7251) (as amended by section 772(a) of Public Law 107-76) is
amended in subsections (b)(5) and (h) by striking `May 31, 2002' each place it
appears and inserting `December 31, 2006'.
SEC. 132. NATIONAL DAIRY PROGRAM.
The Federal Agriculture Improvement and Reform Act of 1996 (as amended
by section 772(b) of Public Law 107-76) is amended by inserting after section
141 (7 U.S.C. 7251) the following:
`SEC. 142. NATIONAL DAIRY PROGRAM.
`(a) DAIRY MARKET LOSS ASSISTANCE PROGRAM-
`(1) DEFINITIONS- In this subsection:
`(A) AVERAGE PRICE OF MILK- The term `average price of milk' means
the blending of the prices of milk for use as fluid milk and in cheese,
ice cream, butter, and nonfat dry milk in the marketing area where the
milk was marketed, as determined by the Secretary.
`(B) PRODUCER- The term `producer' means an individual or entity
that directly or indirectly (as determined by the Secretary) shares in the
risk of producing milk.
`(2) PROGRAM- Subject to paragraph (8), the Secretary shall provide
market loss assistance payments to producers on a dairy farm with respect to
the production of milk in a State other than a participating State (as
defined in subsection (b)(1)) that is marketed during the period beginning
on December 1, 2001, and ending on September 30, 2005.
`(3) AMOUNT- Subject to paragraph (8), payments to a producer under
this subsection shall be calculated by multiplying--
`(A) the payment quantity for the producer during the applicable
quarter established under paragraph (4); by
`(B) the payment rate established under paragraph
(5).
`(A) IN GENERAL- Subject to subparagraph (B), the payment quantity
for a producer during the applicable quarter under this subsection shall
be equal to the quantity of milk produced and marketed by the producer
during the quarter.
`(B) LIMITATION- The payment quantity for a producer during the
applicable fiscal year under this subsection shall not exceed the milk
marketing base for the producer established under subsection
(c).
`(5) PAYMENT RATE- The payment rate for a payment under this
subsection shall be calculated by multiplying (as determined by the
Secretary)--
`(B) the amount by which--
`(i) the average price of milk during the applicable quarter; is
less than
`(ii) the average price of milk for the same quarter during each
of the previous 5 years.
`(6) REPORTING OF PRODUCTION- The Secretary may require producers
that receive payments under this subsection to report the quantity of milk
produced and marketed by the producer on the dairy farm of the producer, in
a manner determined by the Secretary.
`(A) IN GENERAL- Except as provided in subparagraph (B), payments
made under this subsection shall be made on a quarterly
basis.
`(B) PAYMENTS FOR FISCAL YEAR 2002- Payments under this subsection
for fiscal year 2002 shall not be made before October 1,
2002.
`(8) FUNDING- The Secretary shall use not more than $1,500,000,000
of funds of the Commodity Credit Corporation to carry out this
subsection.
`(b) NORTHEAST DAIRY MARKET LOSS PAYMENTS-
`(1) DEFINITIONS- In this subsection:
`(A) CLASS I MILK- The term `Class I milk' means milk (including
milk components) classified as Class I milk under a Federal milk marketing
order.
`(B) ELIGIBLE PRODUCTION- The term `eligible production' means
milk produced by a producer in a participating State.
`(C) FEDERAL MILK MARKETING ORDER- The term `Federal milk
marketing order' means an order issued under section 8c of the
Agricultural Adjustment Act (7 U.S.C. 608c), reenacted with amendments by
the Agricultural Marketing Agreement Act of 1937.
`(D) PARTICIPATING STATE- The term `participating State' means
Connecticut, Delaware, Maine, Maryland, Massachusetts, New Hampshire, New
Jersey, New York, Pennsylvania, Rhode Island, Vermont, and West
Virginia.
`(E) PRODUCER- The term `producer' means an individual or entity
that directly or indirectly (as determined by the
Secretary)--
`(i) shares in the risk of producing milk; and
`(ii) makes contributions (including land, labor, management,
equipment, or capital) to the dairy farming operation of the individual
or entity that are at least commensurate with the share of the
individual or entity of the proceeds of the operation.
`(2) PAYMENTS- Subject to paragraph (9), the Secretary shall offer
to enter into contracts with producers on a dairy farm located in a
participating State under which the producers receive payments on eligible
production in exchange for compliance on the farm with--
`(A) applicable highly erodible land conservation requirements
under subtitle B of title XII of the Food Security Act of 1985 (16 U.S.C.
3811 et seq.); and
`(B) applicable wetland conservation requirements under subtitle C
of title XII of that Act (16 U.S.C. 3821 et seq.).
`(3) AMOUNT- Payments to a producer under this subsection shall be
calculated by multiplying (as determined by the Secretary)--
`(A) the payment quantity for the producer during the applicable
month established under paragraph (4);
`(B) the amount equal to--
`(i) $16.94 per hundredweight; less
`(ii) the Class I milk price per hundredweight in Boston under
the applicable Federal milk marketing order; by
`(A) IN GENERAL- Subject to subparagraph (B), the payment quantity
for a producer during the applicable month under this subsection shall be
equal to the quantity of milk produced and marketed by the producer during
the month.
`(B) LIMITATION- The payment quantity for a producer during the
applicable fiscal year under this subsection shall not exceed the milk
marketing base for the producer established under subsection
(c).
`(5) PAYMENTS- A payment under a contract under this subsection
shall be made on a monthly basis not later than 60 days after the last day
of the month for which the payment is made.
`(6) SIGNUP- The Secretary shall offer to enter into contracts under
this subsection during the period beginning on December 1, 2001, and ending
on September 30, 2005.
`(7) DURATION OF CONTRACT-
`(A) IN GENERAL- Except as provided in subparagraph (B) and
paragraph (8), any contract entered into by producers on a dairy farm
under this subsection shall cover eligible production marketed by the
producers on the dairy farm during the period starting with the first day
of month the producers on the dairy farm enter into the contract and
ending on September 30, 2005.
`(B) VIOLATIONS- If a producer violates the contract, the
Secretary may--
`(i) terminate the contract and allow the producer to retain any
payments received under the contract; or
`(ii) allow the contract to remain in effect and require the
producer to repay a portion of the payments received under the contract
based on the severity of the violation.
`(8) TRANSITION RULE- In addition to any payment that is otherwise
available under this subsection, if the producers on a dairy farm enter into
a contract under this subsection by March 1, 2002, the Secretary shall make
a payment under this subsection on the quantity of eligible production of
the producer marketed during the period beginning on December 1, 2001, and
ending on January 1, 2002.
`(9) FUNDING- The Secretary shall use not more than $500,000,000 of
funds of the Commodity Credit Corporation to carry out this
subsection.
`(c) MILK MARKETING BASE-
`(1) DEFINITION OF NEW PRODUCER- In this subsection, the term `new
producer' means a producer of milk that did not have an interest in the
production of milk during any of 1999 through 2001 fiscal years.
`(2) ESTABLISHED PRODUCERS- In the case of a producer of milk other
than a new producer, the milk marketing base of a producer for a fiscal year
under this section shall be equal to the lesser of--
`(A) the average quantity of milk marketed for commercial use in
which the producer has had a direct or indirect interest during each of
the 1999 through 2001 fiscal years; or
`(3) NEW PRODUCERS- In the case of a new producer, the milk
marketing base of the new producer under this section shall be equal
to--
`(A) during each of the first 3 fiscal years of milk production by
the new producer, 1,500,000 pounds; and
`(B) during each subsequent year of milk production, the lesser
of--
`(i) the average quantity of milk marketed for commercial use in
which the producer has had a direct or indirect interest during the
first 3 years of milk production by the new producer;
or
`(4) ADJUSTMENTS- The Secretary may provide for the adjustment of
any milk marketing base of a producer under this subsection--
`(A) if the production of milk used to determine the milk
marketing base of the producer has been adversely affected by damaging
weather or a related condition (as determined by the Secretary);
or
`(B) if the adjustment is necessary to provide fair and equitable
treatment to tenants and sharecroppers.
`(A) IN GENERAL- Except as provided in subparagraph (B), a
producer that is assigned a milk marketing base under this subsection may
not transfer the base to any person.
`(B) FAMILY MEMBERS- A producer that is assigned a milk marketing
base under this subsection may irrevocably transfer all or part of the
base to a family member of the producer.
`(6) SCHEMES OR DEVICES- If the Secretary determines that any
producer has adopted a scheme or device to increase the milk marketing base
of the producer under this subsection, the producer shall become ineligible
for any milk marketing base under this subsection.'.
SEC. 133. DAIRY EXPORT INCENTIVE AND DAIRY INDEMNITY PROGRAMS.
(a) DAIRY EXPORT INCENTIVE PROGRAM- Section 153(a) of the Food
Security Act of 1985 (15 U.S.C. 713a-14(a)) is amended by striking `2002' and
inserting `2006'.
(b) DAIRY INDEMNITY PROGRAM- Section 3 of Public Law 90-484 (7 U.S.C.
450l) is amended by striking `1995' and inserting `2006'.
SEC. 134. FLUID MILK PROMOTION.
(a) DEFINITION OF FLUID MILK PRODUCT- Section 1999C of the Fluid Milk
Promotion Act of 1990 (7 U.S.C. 6402) is amended by striking paragraph (3) and
inserting the following:
`(3) FLUID MILK PRODUCT- The term `fluid milk product' has the
meaning given the term in--
`(A) section 1000.15 of title 7, Code of Federal Regulations,
subject to such amendments as may be made by the Secretary;
or
`(B) any successor regulation.'.
(b) DEFINITION OF FLUID MILK PROCESSOR- Section 1999C(4) of the Fluid
Milk Promotion Act of 1990 (7 U.S.C. 6402(4)) is amended by striking `500,000
pounds of fluid milk products in consumer-type packages per month' and
inserting `3,000,000 pounds of fluid milk products in consumer-type packages
per month (excluding products delivered directly to the place of residence of
a consumer)'.
(c) ELIMINATION OF ORDER TERMINATION DATE- Section 1999O of the Fluid
Milk Promotion Act of 1990 (7 U.S.C. 6414) is amended--
(1) by striking subsection (a); and
(2) by redesignating subsections (b) and (c) as subsections (a) and
(b), respectively.
SEC. 135. DAIRY PRODUCT MANDATORY REPORTING.
Section 272(1) of the Agricultural Marketing Act of 1946 (7 U.S.C.
1637a(1)) is amended--
(1) by striking `means manufactured dairy products' and inserting
`means--
`(A) manufactured dairy products';
(2) by striking the period at the end and inserting `; and';
and
(3) by adding at the end the following:
`(B) substantially identical products designated by the
Secretary.'.
SEC. 136. FUNDING OF DAIRY PROMOTION AND RESEARCH PROGRAM.
(a) DEFINITIONS- Section 111 of the Dairy Production Stabilization Act
of 1983 (7 U.S.C. 4502) is amended--
(1) in subsection (k), by striking `and' at the end;
(2) in subsection (l), by striking the period at the end and
inserting a semicolon; and
(3) by adding at the end the following:
`(m) the term `imported dairy product' means any dairy product that
is imported into the United States, including a dairy product imported into
the United States in the form of--
`(1) milk, cream, and fresh and dried dairy
products;
`(2) butter and butterfat mixtures;
`(4) casein and mixtures;
`(n) the term `importer' means a person that imports an imported
dairy product into the United States; and
`(o) the term `Customs' means the United States Customs
Service.'.
(b) REPRESENTATION OF IMPORTERS ON BOARD- Section 113(b) of the Dairy
Production Stabilization Act of 1983 (7 U.S.C. 4504(b)) is amended--
(1) by inserting `NATIONAL DAIRY PROMOTION AND RESEARCH BOARD- '
after `(b)';
(2) by designating the first through ninth sentences as paragraphs
(1) through (5) and paragraphs (7) through (10), respectively, and indenting
the paragraphs appropriately;
(3) in paragraph (2) (as so designated), by striking `Members' and
inserting `Except as provided in paragraph (6), the members'; and
(4) by inserting after paragraph (5) (as so designated) the
following:
`(A) REPRESENTATION- The Secretary shall appoint not more than 2
members who represent importers of dairy products and are subject to
assessments under the order, to reflect the proportion of domestic
production and imports supplying the United States market, as determined
by the Secretary on the basis of the average volume of domestic production
of dairy products in proportion to the average volume of imports of dairy
products in the United States during the immediately preceding 3
years.
`(B) ADDITIONAL MEMBERS; NOMINATIONS- The members appointed under
this paragraph--
`(i) shall be in addition to the total number of members
appointed under paragraph (2); and
`(ii) shall be appointed from nominations submitted by importers
under such procedures as the Secretary determines to be
appropriate.'.
(c) IMPORTER ASSESSMENT- Section 113(g) of the Dairy Production
Stabilization Act of 1983 (7 U.S.C. 4504(g)) is amended--
(1) by inserting `ASSESSMENTS- ' after `(g)';
(2) by designating the first through fifth sentences as paragraphs
(1) through (5), respectively, and indenting appropriately; and
(3) by adding at the end the following:
`(A) IN GENERAL- The order shall provide that each importer of
imported dairy products shall pay an assessment to the Board in the manner
prescribed by the order.
`(i) IN GENERAL- The assessment on imported dairy products shall
be--
`(I) paid by the importer to Customs at the time of the entry
of the products into the United States; and
`(II) remitted by Customs to the Board.
`(ii) TIME OF ENTRY- For purposes of this subparagraph, entry of
the products into the United States shall be considered to have occurred
when a dairy product is released from custody of Customs and introduced
into the stream of commerce within the United States.
`(iii) IMPORTERS- For purposes of this subparagraph, an importer
includes--
`(I) a person that holds title to a dairy product produced
outside the United States immediately on release by Customs;
and
`(II) a person that acts on behalf of other persons, as an
agent, broker, or consignee, to secure the release of a dairy product
from Customs and introduce the released dairy product into the stream
of commerce.
`(C) RATE- The rate of assessment on imported dairy products shall
be determined in the same manner as the rate of assessment per
hundredweight or the equivalent of milk.
`(D) VALUE OF PRODUCTS- For the purpose of determining the
assessment on imported dairy products under subparagraph (C), the value to
be placed on imported dairy products shall be established by the Secretary
in a fair and equitable manner.
`(E) USE OF ASSESSMENTS ON IMPORTED DAIRY PRODUCTS- Assessments
collected on imported dairy products shall not be used for foreign market
promotion of United States dairy products.'.
(d) RECORDS- Section 113(k) of the Dairy Production Stabilization Act
of 1983 (7 U.S.C. 4504(k)) is amended in the first sentence by striking
`person receiving' and inserting `importer of imported dairy products, each
person receiving'.
(e) IMPORTER ELIGIBILITY TO VOTE IN REFERENDUM- Section 116(b) of the
Dairy Production Stabilization Act of 1983 (7 U.S.C. 4507(b)) is
amended--
(1) in the first sentence, by inserting `and importers' after
`producers' each place it appears; and
(2) in the second sentence, by inserting after `commercial use' the
following: `and importers voting in the referendum (that have been engaged
in the importation of dairy products into the United States during the
applicable period, as determined by the Secretary)'.
(f) CONFORMING AMENDMENTS- Section 110(b) of the Dairy Production
Stabilization Act of 1983 (7 U.S.C. 4501(b)) is amended--
(1) in the first sentence--
(A) by inserting after `commercial use' the following: `and on
imported dairy products'; and
(B) by striking `products produced in the United States.' and
inserting `products.'; and
(2) in the second sentence, by inserting after `produce milk' the
following: `or the right of any person to import dairy products'.
SEC. 137. DAIRY STUDIES.
(a) IN GENERAL- The Secretary of Agriculture shall conduct--
(1) a study of the effects of terminating all Federal programs
relating to price support and supply management for milk and granting the
consent of Congress to cooperative efforts by States to manage milk prices
and supply; and
(2) a study of the effects of including in the standard of identity
for fluid milk a required minimum protein content that is commensurate with
the average nonfat solids content of bovine milk produced in the United
States.
(b) REPORTS- Not later than September 30, 2002, the Secretary shall
submit to the Committee on Agriculture of House of Representatives and the
Committee on Agriculture, Nutrition, and Forestry a report describing the
results of each of the studies required under subsection (a).
CHAPTER 2--SUGAR
SEC. 141. SUGAR PROGRAM.
(a) LOAN RATE ADJUSTMENTS- Section 156(c) of the Federal Agriculture
Improvement and Reform Act of 1996 (7 U.S.C. 7272(c)) is amended--
(1) by striking `REDUCTION IN LOAN RATES' and inserting `LOAN RATE
ADJUSTMENTS'; and
(A) by striking `REDUCTION REQUIRED' and inserting `IN GENERAL';
and
(B) by striking `shall' and inserting `may'.
(b) LOAN TYPE; PROCESSOR ASSURANCES- Section 156(e) of the Federal
Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7272(e)) is
amended--
(1) by striking paragraph (2) and inserting the
following:
`(2) PROCESSOR ASSURANCES-
`(A) IN GENERAL- The Secretary shall obtain from each processor
that receives a loan under this section such assurances as the Secretary
considers adequate to ensure that the processor will provide payments to
producers that are proportional to the value of the loan received by the
processor for the sugar beets and sugarcane delivered by producers to the
processor.
`(i) IN GENERAL- Subject to clause (ii), the Secretary may
establish appropriate minimum payments for purposes of this
paragraph.
`(ii) LIMITATION- In the case of sugar beets, the minimum
payment established under clause (i) shall not exceed the rate of
payment provided for under the applicable contract between a sugar beet
producer and a sugar beet processor.
`(C) BANKRUPTCY OR INSOLVENCY OF PROCESSORS-
`(i) IN GENERAL- The Secretary shall use funds of the Commodity
Credit Corporation to pay a producer of sugar beets or sugarcane loan
benefits described in clause (ii) if--
`(I) a processor that has entered into a contract with the
producer has filed for bankruptcy protection or is otherwise
insolvent;
`(II) the assurances under subparagraph (A) are not adequate
to ensure compliance with subparagraph (A), as determined by the
Secretary;
`(III) the producer demands payments of loan benefits required
under this section from the processor; and
`(IV) the Secretary determines that the processor is unable to
provide the loan benefits required under this
section.
`(ii) AMOUNT- The amount of loan benefits provided to a producer
under clause (i) shall be equal to--
`(I) the maximum amount of loan benefits the producer would
have been entitled to receive under this section during the 30-day
period beginning on the final settlement date provided for in the
contract between the producer and processor; less
`(II) any such benefits received by the producer from the
processor.
`(iii) ADMINISTRATION- On payment to a producer under clause
(i), the Secretary shall--
`(I) be subrogated to all claims of the producer against the
processor and other persons responsible for nonpayment;
and
`(II) have authority to pursue such claims as are necessary to
recover the benefits not paid to the producer by the processor.';
and
(2) by adding at the end the following:
`(3) ADMINISTRATION- The Secretary may not impose or enforce any
prenotification or similar administrative requirement that has the effect of
preventing a processor from electing to forfeit the loan collateral on the
maturity of the loan.'.
(c) TERMINATION OF MARKETING ASSESSMENT- Effective October 1, 2001,
section 156 of the Federal Agriculture Improvement and Reform Act of 1996 (7
U.S.C. 7272) is amended by striking subsection (f).
(d) TERMINATION OF FORFEITURE PENALTY- Section 156 of the Federal
Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7272) is amended by
striking subsection (g).
(e) IN-PROCESS SUGAR- Section 156 of the Federal Agriculture
Improvement and Reform Act of 1996 (7 U.S.C. 7272) (as amended by subsections
(c) and (d)) is amended by inserting after subsection (e) the
following:
`(f) LOANS FOR IN-PROCESS SUGAR-
`(1) DEFINITION OF IN-PROCESS SUGARS AND SYRUPS- In this subsection,
the term `in-process sugars and syrups' does not include raw sugar, liquid
sugar, invert sugar, invert syrup, or other finished product that is
otherwise eligible for a loan under subsection (a) or (b).
`(2) AVAILABILITY- The Secretary shall make nonrecourse loans
available to processors of a crop of domestically grown sugarcane and sugar
beets for in-process sugars and syrups derived from the crop.
`(3) LOAN RATE- The loan rate shall be equal to 80 percent of the
loan rate applicable to raw cane sugar or refined beet sugar, as determined
by the Secretary on the basis of the source material for the in-process
sugars and syrups.
`(4) FURTHER PROCESSING ON FORFEITURE-
`(A) IN GENERAL- As a condition of the forfeiture of in-process
sugars and syrups serving as collateral for a loan under paragraph (2),
the processor shall, within such reasonable time period as the Secretary
may prescribe and at no cost to the Commodity Credit Corporation, convert
the in-process sugars and syrups into raw cane sugar or refined beet sugar
of acceptable grade and quality for sugars eligible for loans under
subsection (a) or (b).
`(B) TRANSFER TO CORPORATION- Once the in-process sugars and
syrups are fully processed into raw cane sugar or refined beet sugar, the
processor shall transfer the sugar to the Commodity Credit
Corporation.
`(C) PAYMENT TO PROCESSOR- On transfer of the sugar, the Secretary
shall make a payment to the processor in an amount equal to the amount
obtained by multiplying--
`(i) the difference between--
`(I) the loan rate for raw cane sugar or refined beet sugar,
as appropriate; and
`(II) the loan rate the processor received under paragraph
(3); by
`(ii) the quantity of sugar transferred to the
Secretary.
`(5) LOAN CONVERSION- If the processor does not forfeit the
collateral as described in paragraph (4), but instead further processes the
in-process sugars and syrups into raw cane sugar or refined beet sugar and
repays the loan on the in-process sugars and syrups, the processor may
obtain a loan under subsection (a) or (b) for the raw cane sugar or refined
beet sugar, as appropriate.'.
(f) ADMINISTRATION OF PROGRAM- Section 156 of the Federal Agriculture
Improvement and Reform Act of 1996 (7 U.S.C. 7272) (as amended by subsection
(e)) is amended by inserting after subsection (f) the following:
`(g) AVOIDING FORFEITURES; CORPORATION INVENTORY DISPOSITION-
`(1) IN GENERAL- Subject to subsection (e)(3), to the maximum extent
practicable, the Secretary shall operate the program established under this
section at no cost to the Federal Government by avoiding the forfeiture of
sugar to the Commodity Credit Corporation.
`(2) INVENTORY DISPOSITION-
`(A) IN GENERAL- To carry out paragraph (1), the Commodity Credit
Corporation may accept bids to obtain raw cane sugar or refined beet sugar
in the inventory of the Commodity Credit Corporation from (or otherwise
make available such commodities, on appropriate terms and conditions, to)
processors of sugarcane and processors of sugar beets (acting in
conjunction with the producers of the sugarcane or sugar beets processed
by the processors) in return for the reduction of production of raw cane
sugar or refined beet sugar, as appropriate.
`(B) ADDITIONAL AUTHORITY- The authority provided under this
paragraph is in addition to any authority of the Commodity Credit
Corporation under any other law.'.
(g) INFORMATION REPORTING- Section 156(h) of the Federal Agriculture
Improvement and Reform Act of 1996 (7 U.S.C. 7272(h)) is amended--
(1) by redesignating paragraphs (2) and (3) as paragraphs (4) and
(5), respectively;
(2) by inserting after paragraph (1) the following:
`(2) DUTY OF PRODUCERS TO REPORT-
`(A) PROPORTIONATE SHARE STATES- As a condition of a loan made to
a processor for the benefit of a producer, the Secretary shall require
each producer of sugarcane located in a State (other than the Commonwealth
of Puerto Rico) in which there are in excess of 250 producers of sugarcane
to report, in the manner prescribed by the Secretary, the sugarcane yields
and acres planted to sugarcane of the producer.
`(B) OTHER STATES- The Secretary may require each producer of
sugarcane or sugar beets not covered by paragraph (1) to report, in a
manner prescribed by the Secretary, the yields of, and acres planted to,
sugarcane or sugar beets, respectively, of the producer.
`(3) DUTY OF IMPORTERS TO REPORT-
`(A) IN GENERAL- Except as provided in subparagraph (B), the
Secretary shall require an importer of sugars, syrups, or molasses to be
used for human consumption or to be used for the extraction of sugar for
human consumption to report, in the manner prescribed by the Secretary,
the quantities of the products imported by the importer and the sugar
content or equivalent of the products.
`(B) TARIFF-RATE QUOTAS- Subparagraph (A) shall not apply to
sugars, syrups, or molasses that are within the quantities of tariff-rate
quotas that are subject to the lower rate of duties.'; and
(3) in paragraph (5) (as redesignated by paragraph (1)), by striking
`paragraph (1)' and inserting `this subsection'.
(h) SUBSTITUTABILITY OF SUGAR- Section 156 of the Federal Agriculture
Improvement and Reform Act of 1996 (7 U.S.C. 7272) is amended--
(1) by redesignating subsection (i) as subsection (j);
and
(2) by inserting after subsection (h) the following:
`(i) SUBSTITUTION OF REFINED SUGAR- For purposes of Additional U.S.
Note 6 to chapter 17 of the Harmonized Tariff Schedule of the United States
and the reexport programs and polyhydric alcohol program administered by the
Foreign Agricultural Service of the Department of Agriculture, all refined
sugars (whether derived from sugar beets or sugarcane) produced by cane sugar
refineries and beet sugar processors shall be fully substitutable for the
export of sugar under those programs.'.
(i) CROPS- Subsection (j) of section 156 of the Federal Agriculture
Improvement and Reform Act of 1996 (7 U.S.C. 7272) (as redesignated by
subsection (h)(1)) is amended--
(1) by striking `(other than subsection (f))'; and
(2) by striking `2002' and inserting `2006'.
(j) INTEREST RATE- Section 163 of the Federal Agriculture Improvement
and Reform Act of 1996 (7 U.S.C. 7283) is amended--
(1) by inserting `(a) IN GENERAL- ' before `Notwithstanding';
and
(2) by adding at the end the following:
`(b) SUGAR- For purposes of this section, raw cane sugar, refined beet
sugar, and in-process sugar eligible for a loan under section 156 shall not be
considered an agricultural commodity.'.
SEC. 142. STORAGE FACILITY LOANS.
Chapter 2 of subtitle D of the Federal Agriculture Improvement and
Reform Act of 1996 (7 U.S.C. 7271 et seq.) is amended by adding at the end the
following:
`SEC. 157. STORAGE FACILITY LOANS.
`(a) IN GENERAL- Notwithstanding any other provision of law and as
soon as practicable after the date of enactment of this section, the Commodity
Credit Corporation shall amend part 1436 of title 7, Code of Federal
Regulations, to establish a sugar storage facility loan program to provide
financing for processors of domestically-produced sugarcane and sugar beets to
construct or upgrade storage and handling facilities for raw sugars and
refined sugars.
`(b) ELIGIBLE PROCESSORS- A storage facility loan shall be made
available to any processor of domestically produced sugarcane or sugar beets
that (as determined by the Secretary)--
`(1) has a satisfactory credit history;
`(2) has a need for increased storage capacity, taking into account
the effects of marketing allotments; and
`(3) demonstrates an ability to repay the loan.
`(c) TERM OF LOANS- A storage facility loan shall--
`(1) have a minimum term of 7 years; and
`(2) be in such amounts and on such terms and conditions (including
terms and conditions relating to downpayments, collateral, and eligible
facilities) as are normal, customary, and appropriate for the size and
commercial nature of the borrower.'.
SEC. 143. FLEXIBLE MARKETING ALLOTMENTS FOR SUGAR.
(a) INFORMATION REPORTING- Section 359a of the Agricultural Adjustment
Act of 1938 (7 U.S.C. 1359aa) is repealed.
(b) ESTIMATES- Section 359b of the Agricultural Adjustment Act of 1938
(7 U.S.C. 1359bb) is amended--
(1) in the section heading--
(A) by inserting `flexible' before `marketing'; and
(B) by striking `and crystalline fructose';
(i) by striking `Before' and inserting `Not later than August 1
before';
(ii) by striking `1992 through 1998' and inserting `2002 through
2006';
(iii) in subparagraph (A), by striking `(other than sugar' and
all that follows through `stocks';
(iv) by redesignating subparagraphs (B) and (C) as subparagraphs
(C) and (E), respectively;
(v) by inserting after subparagraph (A) the
following:
`(B) the quantity of sugar that would provide for reasonable
carryover stocks;';
(vi) in subparagraph (C) (as so redesignated)--
(I) by striking `or' and all that follows through `beets';
and
(II) by striking `and' following the
semicolon;
(vii) by inserting after subparagraph (C) (as so redesignated)
the following:
`(D) the quantity of sugar that will be available from the
domestic processing of sugarcane and sugar beets; and'; and
(viii) in subparagraph (E) (as so
redesignated)--
(I) by striking `quantity of sugar' and inserting `quantity of
sugars, syrups, and molasses';
(II) by inserting `human' after `imported for' the first place
it appears;
(III) by inserting after `consumption' the first place it
appears the following: `or to be used for the extraction of sugar for
human consumption';
(IV) by striking `year' and inserting `year, whether such
articles are under a tariff-rate quota or are in excess or outside of
a tariff-rate quota'; and
(V) by striking `(other than sugar' and all that follows
through `carry-in stocks';
(B) by redesignating paragraph (2) as paragraph (3);
(C) by inserting after paragraph (1) the following:
`(2) EXCLUSION- The estimates under this subsection shall not apply
to sugar imported for the production of polyhydric alcohol or to any sugar
refined and reexported in refined form or in products containing sugar.';
and
(D) in paragraph (3) (as so redesignated)--
(i) in the paragraph heading, by striking `QUARTERLY
REESTIMATES' and inserting `REESTIMATES'; and
(ii) by inserting `as necessary, but' after `a fiscal
year';
(A) by striking paragraph (1) and inserting the
following:
`(1) IN GENERAL- By the beginning of each fiscal year, the Secretary
shall establish for that fiscal year appropriate allotments under section
359c for the marketing by processors of sugar processed from sugar beets and
from domestically-produced sugarcane at a level that the Secretary estimates
will result in no forfeitures of sugar to the Commodity Credit Corporation
under the loan program for sugar established under section 156 of the
Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7272).';
and
(B) in paragraph (2), by striking `or crystalline
fructose';
(4) by striking subsection (c);
(5) by redesignating subsection (d) as subsection (c);
and
(6) in subsection (c) (as so redesignated)--
(A) by striking paragraph (2);
(B) by redesignating paragraphs (3) and (4) as paragraphs (2) and
(3), respectively; and
(C) in paragraph (2) (as so redesignated)--
(i) by striking `or manufacturer' and all that follows through
`(2)'; and
(ii) by striking `or crystalline fructose'.
(c) ESTABLISHMENT- Section 359c of the Agricultural Adjustment Act of
1938 (7 U.S.C. 1359cc) is amended--
(1) in the section heading, by inserting `flexible' after
`of';
(2) in subsection (a), by inserting `flexible' after
`establish';
(A) in paragraph (1)(A), by striking `1,250,000' and inserting
`1,532,000'; and
(B) in paragraph (2), by striking `to the maximum extent
practicable';
(4) by striking subsection (c) and inserting the
following:
`(c) MARKETING ALLOTMENT FOR SUGAR DERIVED FROM SUGAR BEETS AND SUGAR
DERIVED FROM SUGARCANE- The overall allotment quantity for the fiscal year
shall be allotted between--
`(1) sugar derived from sugar beets by establishing a marketing
allotment for a fiscal year at a quantity equal to the product of
multiplying the overall allotment quantity for the fiscal year by 54.35
percent; and
`(2) sugar derived from sugarcane by establishing a marketing
allotment for a fiscal year at a quantity equal to the product of
multiplying the overall allotment quantity for the fiscal year by 45.65
percent.';
(5) by striking subsection (d) and inserting the
following:
`(d) FILLING CANE SUGAR AND BEET SUGAR ALLOTMENTS-
`(1) CANE SUGAR- Each marketing allotment for cane sugar established
under this section may only be filled with sugar processed from domestically
grown sugarcane.
`(2) BEET SUGAR- Each marketing allotment for beet sugar established
under this section may only be filled with sugar domestically processed from
sugar beets.';
(6) by striking subsection (e);
(7) by redesignating subsection (f) as subsection (e);
(8) in subsection (e) (as so redesignated)--
(A) by striking `The allotment' and inserting the
following:
`(1) IN GENERAL- The allotment';
(B) in paragraph (1) (as so redesignated)--
(i) by striking `the 5' and inserting `the';
(ii) by inserting after `sugarcane is produced,' the following:
`after a hearing (if requested by the affected sugarcane processors and
growers) and on such notice as the Secretary by regulation may
prescribe,'; and
(iii) by striking `on the basis of past marketings' and all that
follows through `allotments' and inserting `as provided in this
subsection and section 359d(a)(2)(A)(iv)'; and
(C) by inserting after paragraph (1) (as so designated) the
following:
`(A) COLLECTIVELY- Prior to the allotment of sugar derived from
sugarcane to any other State, 325,000 short tons, raw value shall be
allotted to the offshore States.
`(B) INDIVIDUALLY- The collective offshore State allotment
provided for under subparagraph (A) shall be further allotted among the
offshore States in which sugarcane is produced, after a hearing (if
requested by the affected sugarcane processors and growers) and on such
notice as the Secretary by regulation may prescribe, in a fair and
equitable manner on the basis of--
`(i) past marketings of sugar, based on the average of the 2
highest years of production of raw cane sugar from the 1996 through 2000
crops;
`(ii) the ability of processors to market the sugar covered
under the allotments for the crop year; and
`(iii) past processings of sugar from sugarcane based on the
3-year average of the 1998 through 2000 crop years.
`(3) MAINLAND ALLOTMENT- The allotment for sugar derived from
sugarcane, less the amount provided for under paragraph (2), shall be
allotted among the mainland States in the United States in which sugarcane
is produced, after a hearing (if requested by the affected sugarcane
processors and growers) and on such notice as the Secretary by regulation
may prescribe, in a fair and equitable manner on the basis of--
`(A) past marketings of sugar, based on the average of the 2
highest years of production of raw cane sugar from the 1996 through 2000
crops;
`(B) the ability of processors to market the sugar covered under
the allotments for the crop year; and
`(C) past processings of sugar from sugarcane, based on the 3 crop
years with the greatest processings (in the mainland States collectively)
during the 1991 through 2000 crop years.';
(9) by inserting after subsection (e) (as so redesignated) the
following:
`(f) FILLING CANE SUGAR ALLOTMENTS- Except as provided in section
359e, a State cane sugar allotment established under subsection (e) for a
fiscal year may be filled only with sugar processed from sugarcane grown in
the State covered by the allotment.';
(A) in paragraph (1), by striking `359b(a)(2)--' and all that
follows through the comma at the end of subparagraph (C) and inserting
`359b(a)(3), adjust upward or downward marketing allotments in a fair and
equitable manner';
(B) in paragraph (2), by striking `359f(b)' and inserting
`359f(c)'; and
(i) in the paragraph heading, by striking `REDUCTIONS' and
inserting `CARRY-OVER OF REDUCTIONS';
(ii) by inserting after `this subsection, if' the following: `at
the time of the reduction';
(iii) by striking `price support' and inserting
`nonrecourse';
(iv) by striking `206' and all that follows through `the
allotment' and inserting `156 of the Federal Agriculture Improvement and
Reform Act of 1996 (7 U.S.C. 7272),'; and
(v) by striking `, if any,'; and
(11) by striking subsection (h) and inserting the
following:
`(h) SUSPENSION OF ALLOTMENTS- Whenever the Secretary estimates or
reestimates under section 359b(a), or has reason to believe, that imports of
sugars, syrups or molasses for human consumption or to be used for the
extraction of sugar for human consumption, whether under a tariff-rate quota
or in excess or outside of a tariff-rate quota, will exceed 1,532,000 short
tons (raw value equivalent), and that the imports would lead to a reduction of
the overall allotment quantity, the Secretary shall suspend the marketing
allotments established under this section until such time as the imports have
been restricted, eliminated, or reduced to or below the level of 1,532,000
short tons (raw value equivalent).'.
(d) ALLOCATION- Section 359d(a)(2) of the Agricultural Adjustment Act
of 1938 (7 U.S.C. 1359dd(a)(2)) is amended--
(1) in subparagraph (A)--
(A) by striking `The Secretary' and inserting the
following:
`(i) IN GENERAL- The Secretary';
(B) in the first sentence of clause (i) (as so
designated)--
(i) by striking `interested parties' and inserting `the affected
sugarcane processors and growers'; and
(ii) by striking `by taking' and all that follows through
`allotment allocated.' and inserting `under this subparagraph.';
and
(C) by inserting after clause (i) the following:
`(ii) MULTIPLE PROCESSOR STATES- Except as provided in clauses
(iii) and (iv), the Secretary shall allocate the allotment for cane
sugar among multiple cane sugar processors in a single State based
on--
`(I) past marketings of sugar, based on the average of the 2
highest years of production of raw cane sugar from among the 1996
through 2000 crops;
`(II) the ability of processors to market sugar covered by
that portion of the allotment allocated for the crop year;
and
`(III) past processings of sugar from sugarcane, based on the
average of the 3 highest years of production during the 1996 through
2000 crop years.
`(iii) TALISMAN PROCESSING FACILITY- In the case of allotments
under clause (ii) attributable to the operations of the Talisman
processing facility before the date of enactment of this clause, the
Secretary shall allocate the allotment among processors in the State
under clause (i) in accordance with the agreements of March 25 and 26,
1999, between the affected processors and the Secretary of the
Interior.
`(iv) PROPORTIONATE SHARE STATES- In the case of States subject
to section 359f(c), the Secretary shall allocate the allotment for cane
sugar among multiple cane sugar processors in a single state based
on--
`(I) past marketings of sugar, based on the average of the 2
highest years of production of raw cane sugar from among the 1997
through 2001 crop years;
`(II) the ability of processors to market sugar covered by
that portion of the allotments allocated for the crop year;
and
`(III) past processings of sugar from sugarcane, based on the
average of the 2 highest crop years of crop production during the 1997
through 2001 crop years.
`(I) IN GENERAL- Notwithstanding clauses (ii) and (iv), the
Secretary, on application of any processor that begins processing
sugarcane on or after the date of enactment of this clause, and after
a hearing (if requested by the affected sugarcane processors and
growers) and on such notice as the Secretary by regulation may
prescribe, may provide the processor with an allocation that provides
a fair, efficient and equitable distribution of the allocations from
the allotment for the State in which the processor is
located.
`(II) PROPORTIONATE SHARE STATES- In the case of proportionate
share States, the Secretary shall establish proportionate shares in a
quantity sufficient to produce the sugarcane required to satisfy the
allocations.
`(III) LIMITATIONS- The allotment for a new processor under
this clause shall not exceed--
`(aa) in the case of the first fiscal year of operation of a new
processor, 50,000 short tons (raw value); and
`(bb) in the case of each subsequent fiscal year of operation of
the new processor, a quantity established by the Secretary in accordance with
this clause and the criteria described in clause (ii) or (iii), as
applicable.
`(IV) NEW ENTRANT STATES-
`(aa) IN GENERAL- Notwithstanding subparagraphs (A) and (C) of
section 359c(e)(3), to accommodate an allocation under subclause (I) to a new
processor located in a new entrant mainland State, the Secretary shall provide
the new entrant mainland State with an allotment.
`(bb) EFFECT ON OTHER ALLOTMENTS- The allotment to any new
entrant mainland State shall be subtracted, on a pro rata basis, from the
allotments otherwise allotted to each mainland State under section
359c(e)(3).
`(V) ADVERSE EFFECTS- Before providing an initial processor
allocation or State allotment to a new entrant processor or a new
entrant State under this clause, the Secretary shall take into
consideration any adverse effects that the provision of the allocation
or allotment may have on existing cane processors and producers in
mainland States.
`(VI) ABILITY TO MARKET- Consistent with section 359c and this
section, any processor allocation or State allotment made to a new
entrant processor or to a new entrant State under this clause shall be
provided only after the applicant processor, or the applicable
processors in the State, have demonstrated the ability to process,
produce, and market (including the transfer or delivery of the raw
cane sugar to a refinery for further processing or marketing) raw cane
sugar for the crop year for which the allotment is
applicable.
`(VII) PROHIBITION- Not more than 1 processor allocation
provided under this clause may be applicable to any individual sugar
processing facility.
`(vi) TRANSFER OF OWNERSHIP- Except as otherwise provided in
section 359f(c)(8), if a sugarcane processor is sold or otherwise
transferred to another owner or closed as part of an affiliated
corporate group processing consolidation, the Secretary shall transfer
the allotment allocation for the processor to the purchaser, new owner,
successor in interest, or any remaining processor of an affiliated
entity, as applicable, of the processor.'; and
(2) by striking subparagraph (B) and inserting the
following:
`(i) IN GENERAL- Except as otherwise provided in this
subparagraph and sections 359c(g), 359e(b), and 359f(b), the Secretary
shall make allocations for beet sugar among beet sugar processors for
each crop year that allotments are in effect on the basis of the
adjusted weighted average quantity of beet sugar produced by the
processors for each of the 1998 through 2000 crop years, as determined
under this subparagraph.
`(ii) QUANTITY- The quantity of an allocation made for a beet
sugar processor for a crop year under clause (i) shall bear the same
ratio to the quantity of allocations made for all beet sugar processors
for the crop year as the adjusted weighted average quantity of beet
sugar produced by the processor (as determined under clauses (iii) and
(iv)) bears to the total of the adjusted weighted average quantities of
beet sugar produced by all processors (as so
determined).
`(iii) WEIGHTED AVERAGE QUANTITY- Subject to clause (iv), the
weighted quantity of beet sugar produced by a beet sugar processor
during each of the 1998 through 2000 crop years shall be (as determined
by the Secretary)--
`(I) in the case of the 1998 crop year, 25 percent of the
quantity of beet sugar produced by the processor during the crop
year;
`(II) in the case of the 1999 crop year, 35 percent of the
quantity of beet sugar produced by the processor during the crop year;
and
`(III) in the case of the 2000 crop year, 40 percent of the
quantity of beet sugar produced by the processor (including any
quantity of sugar received from the Commodity Credit Corporation)
during the crop year.
`(I) IN GENERAL- The Secretary shall adjust the weighted
average quantity of beet sugar produced by a beet sugar processor
during the 1998 through 2000 crop years under clause (iii) if the
Secretary determines that, during any such crop year, the
processor--
`(aa) opened or closed a sugar beet processing
factory;
`(bb) constructed a molasses desugarization facility;
or
`(cc) suffered substantial quality losses on sugar beets stored
during any such crop year.
`(II) QUANTITY- The quantity of beet sugar produced by a beet
sugar processor under clause (iii) shall be--
`(aa) in the case of a processor that opened a sugar beet
processing factory, increased by 1.25 percent of the total of the adjusted
weighted average quantities of beet sugar produced by all processors during the
1998 through 2000 crop years (without consideration of any adjustment under this
clause) for each sugar beet processing factory that is opened by the
processor;
`(bb) in the case of a processor that closed a sugar beet
processing factory, decreased by 1.25 percent of the total of the adjusted
weighted average quantities of beet sugar produced by all processors during the
1998 through 2000 crop years (without consideration of any adjustment under this
clause) for each sugar beet processing factory that is closed by the
processor;
`(cc) in the case of a processor that constructed a molasses
desugarization facility, increased by 0.25 percent of the total of the adjusted
weighted average quantities of beet sugar produced by all processors during the
1998 through 2000 crop years (without consideration of any adjustment under this
clause) for each molasses desugarization facility that is constructed by the
processor; and
`(dd) in the case of a processor that suffered substantial
quality losses on stored sugar beets, increased by 1.25 percent of the total of
the adjusted weighted average quantities of beet sugar produced by all
processors during the 1998 through 2000 crop years (without consideration of any
adjustment under this clause).
`(v) PERMANENT TERMINATION OF OPERATIONS OF A PROCESSOR- If a
processor of beet sugar has been dissolved, liquidated in a bankruptcy
proceeding, or otherwise has permanently terminated operations (other
than in conjunction with a sale or other disposition of the processor or
the assets of the processor), the Secretary shall--
`(I) eliminate the allocation of the processor provided under
this section; and
`(II) distribute the allocation to other beet sugar processors
on a pro rata basis.
`(vi) SALE OF ALL ASSETS OF A PROCESSOR TO ANOTHER PROCESSOR- If
a processor of beet sugar (or all of the assets of the processor) is
sold to another processor of beet sugar, the Secretary shall transfer
the allocation of the seller to the buyer unless the allocation has been
distributed to other sugar beet processors under clause
(v).
`(vii) SALE OF FACTORIES OF A PROCESSOR TO ANOTHER PROCESSOR-
`(I) IN GENERAL- Subject to clauses (v) and (vi), if 1 or more
factories of a processor of beet sugar (but not all of the assets of
the processor) are sold to another processor of beet sugar during a
fiscal year, the Secretary shall assign a pro rata portion of the
allocation of the seller to the allocation of the buyer to reflect the
historical contribution of the production of the sold factory or
factories to the total allocation of the seller.
`(II) APPLICATION OF ALLOCATION- The assignment of the
allocation under subclause (I) shall apply--
`(aa) during the remainder of the fiscal year during which the
sale described in subclause (I) occurs (referred to in this clause as the
`initial fiscal year'); and
`(bb) each subsequent fiscal year (referred in this clause as a
`subsequent fiscal year'), subject to subclause (III).
`(III) SUBSEQUENT FISCAL YEARS-
`(aa) IN GENERAL- The assignment of the allocation under
subclause (I) shall apply during each subsequent fiscal year unless the acquired
factory or factories continue in operation for less than the initial fiscal year
and the first subsequent fiscal year.
`(bb) REASSIGNMENT- If the acquired factory or factories do not
continue in operation for the complete initial fiscal year and the first
subsequent fiscal year, the Secretary shall reassign the temporary allocation to
other processors of beet sugar on a pro rata basis.
`(IV) USE OF OTHER FACTORIES TO FILL ALLOCATION- If the
transferred allocation to the buyer for the purchased factory or
factories cannot be filled by the production by the purchased factory
or factories for the initial fiscal year or a subsequent fiscal year,
the remainder of the transferred allocation may be filled by beet
sugar produced by the buyer from other factories of the
buyer.
`(viii) NEW ENTRANTS STARTING PRODUCTION OR REOPENING FACTORIES-
If an individual or entity that does not have an allocation of beet
sugar under this part (referred to in this subparagraph as a `new
entrant') starts processing sugar beets after the date of enactment of
this clause, or acquires and reopens a factory that produced beet sugar
during the period of the 1998 through 2000 crop years that (at the time
of acquisition) has no allocation associated with the factory under this
part, the Secretary shall--
`(I) assign an allocation for beet sugar to the new entrant
that provides a fair and equitable distribution of the allocations for
beet sugar; and
`(II) reduce the allocations for beet sugar of all other
processors on a pro rata basis to reflect the new
allocation.
`(ix) NEW ENTRANTS ACQUIRING ONGOING FACTORIES WITH PRODUCTION
HISTORY- If a new entrant acquires a factory that has production history
during the period of the 1998 through 2000 crop years and that is
producing beet sugar at the time the allocations are made from a
processor that has an allocation of beet sugar, the Secretary shall
transfer a portion of the allocation of the seller to the new entrant to
reflect the historical contribution of the production of the sold
factory to the total allocation of the seller.'.
(e) REASSIGNMENT- Section 359e(b) of the Agricultural Adjustment Act
of 1938 (7 U.S.C. 1359ee(b)) is amended--
(A) in subparagraph (B), by striking the `and' after the
semicolon;
(B) by redesignating subparagraph (C) as subparagraph
(D);
(C) by inserting after subparagraph (B) the
following:
`(C) if after the reassignments, the deficit cannot be completely
eliminated, the Secretary shall reassign the estimated quantity of the
deficit to the sale of any inventories of sugar held by the Commodity
Credit Corporation; and'; and
(D) in subparagraph (D) (as so redesignated), by inserting `and
sales' after `reassignments'; and
(A) in subparagraph (A), by striking the `and' after the
semicolon;
(B) in subparagraph (B), by striking `reassign the remainder to
imports.' and inserting `use the estimated quantity of the deficit for the
sale of any inventories of sugar held by the Commodity Credit Corporation;
and'; and
(C) by inserting after subparagraph (B) the
following:
`(C) if after the reassignments and sales, the deficit cannot be
completely eliminated, the Secretary shall reassign the remainder to
imports.'.
(f) PRODUCER PROVISIONS- Section 359f of the Agricultural Adjustment
Act of 1938 (7 U.S.C. 1359ff) is amended--
(A) by striking `Whenever' and inserting the
following:
(B) in the second sentence, by striking `processor's allocation'
and inserting `allocation to the processor';
(C) by striking `Any dispute' and inserting the
following:
`(A) IN GENERAL- Any dispute'; and
(D) by adding at the end the following:
`(B) PERIOD- The arbitration shall, to the maximum extent
practicable, be--
`(i) commenced not more than 45 days after the request;
and
`(ii) completed not more than 60 days after the
request.';
(2) by redesignating subsection (b) as subsection (c);
(3) by inserting after subsection (a) the following:
`(b) SUGAR BEET PROCESSING FACILITY CLOSURES-
`(1) IN GENERAL- If a sugar beet processing facility is closed and
the sugar beet growers that previously delivered beets to the facility elect
to deliver their beets to another processing company, the growers may
petition the Secretary to modify allocations under this part to allow the
delivery.
`(2) INCREASED ALLOCATION FOR PROCESSING COMPANY- The Secretary may
increase the allocation to the processing company to which the growers elect
to deliver their sugar beets, with the approval of the processing company,
to a level that does not exceed the processing capacity of the processing
company, to accommodate the change in deliveries.
`(3) DECREASED ALLOCATION FOR CLOSED COMPANY- The increased
allocation shall be deducted from the allocation to the company that owned
the processing facility that has been closed and the remaining allocation
shall be unaffected.
`(4) TIMING- The determinations of the Secretary on the issues
raised by the petition shall be made within 60 days after the filing of the
petition.'; and
(4) in subsection (c) (as so redesignated)--
(A) in paragraph (3)(A), by striking `the preceding 5 years' and
inserting `the 2 highest years from among the 1999, 2000, and 2001 crop
years';
(B) in paragraph (4)(A), by striking `each' and all that follows
through `in effect' and inserting `the 2 highest of the 1999, 2000, and
2001 crop years'; and
(C) by inserting after paragraph (7) the following:
`(8) PROCESSING FACILITY CLOSURES-
`(A) IN GENERAL- If a sugarcane processing facility subject to
this subsection is closed and the sugarcane growers that delivered
sugarcane to the facility prior to closure elect to deliver their
sugarcane to another processing company, the growers may petition the
Secretary to modify allocations under this part to allow the
delivery.
`(B) INCREASED ALLOCATION FOR PROCESSING COMPANY- The Secretary
may increase the allocation to the processing company to which the growers
elect to deliver the sugarcane, with the approval of the processing
company, to a level that does not exceed the processing capacity of the
processing company, to accommodate the change in deliveries.
`(C) DECREASED ALLOCATION FOR CLOSED COMPANY- The increased
allocation shall be deducted from the allocation to the company that owned
the processing facility that has been closed and the remaining allocation
shall be unaffected.
`(D) TIMING- The determinations of the Secretary on the issues
raised by the petition shall be made within 60 days after the filing of
the petition.'.
(g) CONFORMING AMENDMENTS-
(1) Part VII of subtitle B of title III of the Agricultural
Adjustment Act of 1938 (7 U.S.C. 359aa et seq.) is amended by striking the
part heading and inserting the following:
`PART VII--FLEXIBLE MARKETING ALLOTMENTS FOR SUGAR'.
(2) Part VII of subtitle B of title III of the Agricultural
Adjustment Act of 1938 (as amended by subsection (a)) is amended by
inserting before section 359b (7 U.S.C. 1359bb) the following:
`SEC. 359a. DEFINITIONS.
`(1) MAINLAND STATE- The term `mainland State' means a State other
than an offshore State.
`(2) OFFSHORE STATE- The term `offshore State' means a sugarcane
producing State located outside of the continental United States.
`(3) STATE- Notwithstanding section 301, the term `State'
means--
`(B) the District of Columbia; and
`(C) the Commonwealth of Puerto Rico.
`(4) UNITED STATES- The term `United States', when used in a
geographical sense, means all of the States.'.
(3) Section 359g of the Agricultural Adjustment Act of 1938 (7
U.S.C. 1359gg) is amended--
(A) by striking `359f' each place it appears and inserting
`359f(c)';
(B) in the first sentence of subsection (b), by striking `3
consecutive' and inserting `5 consecutive'; and
(C) in subsection (c), by inserting `or adjusted' after `share
established'.
(4) Section 359j of the Agricultural Adjustment Act of 1938 (7
U.S.C. 1359jj) is amended--
(A) in subsection (b), by striking `sections 359a through 359i'
and inserting `this part'; and
(B) by striking subsection (c).
SEC. 144. REALLOCATION OF SUGAR QUOTA.
Subtitle B of title III of the Agricultural Adjustment Act of 1938 (7
U.S.C. 1311 et seq.) is amended by adding at the end the following:
`PART VIII--REALLOCATING SUGAR QUOTA IMPORT
SHORTFALLS
`SEC. 360. REALLOCATING CERTAIN SUGAR QUOTAS.
`(a) IN GENERAL- Notwithstanding any other provision of law, on or
after June 1 of each year, the United States Trade Representative, in
consultation with the Secretary, shall determine the amount of the quota of
cane sugar used by each qualified supplying country for that fiscal year, and
may reallocate the unused quota for that fiscal year among qualified supplying
countries.
`(b) DEFINITIONS- In this section:
`(1) QUALIFIED SUPPLYING COUNTRY- The term `qualified supplying
country' means one of the following 40 foreign countries that is allowed to
export cane sugar to the United States under an agreement or any other
country with which the United States has an agreement relating to the
importation of cane sugar:
xl Argentina
xl Australia
xl Barbados
xl Belize
xl Bolivia
xl Brazil
xl Colombia
xl Congo
xl Costa Rica
xl Dominican Republic
xl Ecuador
xl El Salvador
xl Fiji
xl Gabon
xl Guatemala
xl Guyana
xl Haiti
xl Honduras
xl India
xl Ivory Coast
xl Jamaica
xl Madagascar
xl Malawi
xl Mauritius
xl Mexico
xl Mozambique
xl Nicaragua
xl Panama
xl Papua New Guinea
xl Paraguay
xl Peru
xl Philippines
xl St. Kitts and Nevis
xl South Africa
xl Swaziland
xl Taiwan
xl Thailand
xl Trinidad-Tobago
xl Uruguay
xl Zimbabwe.
`(2) CANE SUGAR- The term `cane sugar' has the same meaning as the
term has under part VII.'.
CHAPTER 3--PEANUTS
SEC. 151. PEANUT PROGRAM.
(a) IN GENERAL- Subtitle D of the Federal Agriculture Improvement and
Reform Act of 1996 (7 U.S.C. 7251 et seq.) is amended by adding at the end the
following:
`CHAPTER 3--PEANUTS
`SEC. 158A. DEFINITIONS.
`(1) COUNTER-CYCLICAL PAYMENT- The term `counter-cyclical payment'
means a payment made to peanut producers on a farm under section
158D.
`(2) DIRECT PAYMENT- The term `direct payment' means a payment made
to peanut producers on a farm under section 158C.
`(3) EFFECTIVE PRICE- The term `effective price' means the price
calculated by the Secretary under section 158D for peanuts to determine
whether counter-cyclical payments are required to be made under section 158D
for a crop year.
`(4) HISTORICAL PEANUT PRODUCERS ON A FARM- The term `historical
peanut producers on a farm' means the peanut producers on a farm in the
United States that produced or were prevented from planting peanuts during
any of the 1998 through 2001 crop years.
`(5) INCOME PROTECTION PRICE- The term `income protection price'
means the price per ton of peanuts used to determine the payment rate for
counter-cyclical payments.
`(6) PAYMENT ACRES- The term `payment acres' means 85 percent of the
peanut acres on a farm, as established under section 158B, on which direct
payments and counter-cyclical payments are made.
`(7) PEANUT ACRES- The term `peanut acres' means the number of acres
assigned to a particular farm for historical peanut producers on a farm
pursuant to section 158B(b).
`(8) PAYMENT YIELD- The term `payment yield' means the yield
assigned to a farm by historical peanut producers on the farm pursuant to
section 158B(b).
`(9) PEANUT PRODUCER- The term `peanut producer' means an owner,
operator, landlord, tenant, or sharecropper that--
`(A) shares in the risk of producing a crop of peanuts in the
United States; and
`(B) is entitled to share in the crop available for marketing from
the farm or would have shared in the crop had the crop been
produced.
`SEC. 158B. PAYMENT YIELDS, PEANUT ACRES, AND PAYMENT ACRES FOR
FARMS.
`(a) PAYMENT YIELDS AND PAYMENT ACRES-
`(A) IN GENERAL- The Secretary shall determine, for each
historical peanut producer, the average yield for peanuts on all farms of
the historical peanut producer for the 1998 through 2001 crop years,
excluding any crop year during which the producers did not produce
peanuts.
`(B) ASSIGNED YIELDS- Except as provided in subparagraph (C), if,
for any of the crop years referred to in subparagraph (A) in which peanuts
were planted on a farm by the historical peanut producer, the historical
peanut producer has satisfied the eligibility criteria established to
carry out section 1102 of the Agriculture, Rural Development, Food and
Drug Administration, and Related Agencies Appropriations Act, 1999 (7
U.S.C. 1421 note; Public Law 105-277), the Secretary shall assign to the
historical peanut producer a yield for the farm for the crop year equal to
65 percent of the average yield for peanuts for the previous 5 crop
years.
`(C) SELECTION BY PRODUCER- If a county in which a historical
peanut producer described in subparagraph (A) is located is declared a
disaster area during 1 or more of the 4 crop years described in
subparagraph (A), for the purposes of determining the 4-year average yield
for the historical peanut producer, the historical peanut producer may
elect to substitute, for not more than 1 of the crop years during which a
disaster is declared--
`(i) the State 4-year average yield of peanuts produced in the
State; or
`(ii) the average yield for the historical peanut producer
determined by the Secretary under subparagraph (A).
`(2) ACREAGE AVERAGE- The Secretary shall determine, for the
historical peanut producer, the 4-year average of--
`(A) acreage planted to peanuts on all farms for harvest during
the 1998 through 2001 crop years; and
`(B) any acreage that was prevented from being planting to peanuts
during the crop years because of drought, flood, or other natural
disaster, or other condition beyond the control of the historical peanut
producer, as determined by the Secretary.
`(3) TIME FOR DETERMINATIONS; FACTORS-
`(A) TIMING- The Secretary shall make the determinations required
by this subsection not later than 90 days after the date of enactment of
this section.
`(B) FACTORS- In making the determinations, the Secretary shall
take into account changes in the number and identity of historical peanut
producers sharing in the risk of producing a peanut crop since the 1998
crop year, including providing a method for the assignment of average
acres and average yield to a farm when a historical peanut producer is no
longer living or an entity composed of historical peanut producers has
been dissolved.
`(b) ASSIGNMENT OF YIELD AND ACRES TO FARMS-
`(1) ASSIGNMENT BY HISTORICAL PEANUT PRODUCERS- For the first crop
year that begins after the date of enactment of this section, the Secretary
shall provide each historical peanut producer in a State that produced a
contract commodity, or another agricultural commodity for which a production
adjustment program is carried out under the Agricultural Adjustment Act of
1938 (7 U.S.C. 1281 et seq.), or was prevented from planting a contract
commodity, or another such agricultural commodity, during the 2001 crop year
with an opportunity to assign the average peanut yield and average acreage
determined under subsection (a) for the historical peanut producer to
cropland on a farm in the State.
`(2) ASSIGNMENT TO CROPLAND- In the case of a historical peanut
producer on a farm that did not produce a contract commodity, or another
such agricultural commodity, and was not prevented from planting a contract
commodity or another such agricultural commodity during the 2001 crop year,
the average peanut yield and average acreage determined under subsection (a)
shall be assigned to the cropland on the farm.
`(3) PAYMENT YIELD- The average of all of the yields assigned by
historical peanut producers to a farm shall be considered to be the payment
yield for the farm for the purpose of making direct payments and
counter-cyclical payments under this chapter.
`(4) PEANUT ACRES- Subject to subsection (e), the total number of
acres assigned by historical peanut producers to a farm shall be considered
to be the peanut acres for the farm for the purpose of making direct
payments and counter-cyclical payments under this chapter.
`(c) ELECTION- In the case of the first crop year that begins after
the date of enactment of this subsection, a historical peanut producer shall
notify the Secretary of the assignments described in subsection (b)(1) not
later than 180 days after the date of enactment of this section.
`(d) PAYMENT ACRES- The payment acres for peanuts on a farm shall be
equal to 85 percent of the peanut acres assigned to the farm.
`(e) PREVENTION OF EXCESS PEANUT ACRES-
`(1) REQUIRED REDUCTION- If the total of the peanut acres for a
farm, together with the acreage described in paragraph (3), exceeds the
actual cropland acreage of the farm, the Secretary shall reduce the quantity
of peanut acres for the farm or contract acreage for 1 or more covered
commodities for the farm as necessary so that the total of the peanut acres
and acreage described in paragraph (3) does not exceed the actual cropland
acreage of the farm.
`(2) SELECTION OF ACRES- The Secretary shall give the peanut
producers on the farm the opportunity to select the peanut acres or contract
acreage against which the reduction will be made.
`(3) OTHER ACREAGE- For purposes of paragraph (1), the Secretary
shall include--
`(A) any contract acreage for the farm under subtitle
B;
`(B) any acreage on the farm enrolled in the conservation reserve
program or wetlands reserve program under chapter 1 of subtitle D of title
XII of the Food Security Act of 1985 (16 U.S.C. 3830 et seq.);
and
`(C) any other acreage on the farm enrolled in a conservation
program for which payments are made in exchange for not producing an
agricultural commodity on the acreage.
`(3) DOUBLE-CROPPED ACREAGE- In applying paragraph (1), the
Secretary shall take into account additional acreage as a result of an
established double-cropping history on a farm, as determined by the
Secretary.
`SEC. 158C. DIRECT PAYMENTS FOR PEANUTS.
`(a) IN GENERAL- For each of the 2002 through 2006 fiscal years, the
Secretary shall make direct payments to peanut producers on a farm with peanut
acres under section 158B and a payment yield for peanuts under section
158B.
`(b) PAYMENT RATE- The payment rate used to make direct payments with
respect to peanuts for a fiscal year shall be equal to $0.018 per
pound.
`(c) PAYMENT AMOUNT- The amount of the direct payment to be paid to
the peanut producers on a farm for peanuts for a fiscal year shall be equal to
the product obtained by multiplying--
`(1) the payment rate specified in subsection (b);
`(2) the payment acres on the farm; by
`(3) the payment yield for the farm.
`(1) IN GENERAL- The Secretary shall make direct
payments--
`(A) in the case of the 2002 fiscal year, during the period
beginning December 1, 2001, and ending September 30, 2002;
and
`(B) in the case of each of the 2003 through 2006 fiscal years,
not later than September 30 of the fiscal year.
`(A) IN GENERAL- At the option of the peanut producers on a farm,
the Secretary shall pay 50 percent of the direct payment for a fiscal year
for the producers on the farm on a date selected by the peanut producers
on the farm.
`(B) SELECTED DATE- The selected date for a fiscal year shall be
on or after December 1 of the fiscal year.
`(C) SUBSEQUENT FISCAL YEARS- The peanut producers on a farm may
change the selected date for a subsequent fiscal year by providing advance
notice to the Secretary.
`(3) REPAYMENT OF ADVANCE PAYMENTS- If any peanut producer on a farm
that receives an advance direct payment for a fiscal year ceases to be
eligible for a direct payment before the date the direct payment would have
been made by the Secretary under paragraph (1), the peanut producer shall be
responsible for repaying the Secretary the full amount of the advance
payment.
`SEC. 158D. COUNTER-CYCLICAL PAYMENTS FOR PEANUTS.
`(a) IN GENERAL- For each of the 2002 through 2006 crops of peanuts,
the Secretary shall make counter-cyclical payments with respect to peanuts if
the Secretary determines that the effective price for peanuts is less than the
income protection price for peanuts.
`(b) EFFECTIVE PRICE- For purposes of subsection (a), the effective
price for peanuts is equal to the total of--
`(A) the national average market price received by peanut
producers during the marketing season for peanuts, as determined by the
Secretary; or
`(B) the national average loan rate for a marketing assistance
loan for peanuts under section 158G in effect for the marketing season for
peanuts under this chapter; and
`(2) the payment rate in effect for peanuts under section 158C for
the purpose of making direct payments with respect to peanuts.
`(c) INCOME PROTECTION PRICE- For purposes of subsection (a), the
income protection price for peanuts shall be equal to $520 per ton.
`(d) PAYMENT AMOUNT- The amount of the counter-cyclical payment to be
paid to the peanut producers on a farm for a crop year shall be equal to the
product obtained by multiplying--
`(1) the payment rate specified in subsection (e);
`(2) the payment acres on the farm; by
`(3) the payment yield for the farm.
`(e) PAYMENT RATE- The payment rate used to make counter-cyclical
payments with respect to peanuts for a crop year shall be equal to the
difference between--
`(1) the income protection price for peanuts; and
`(2) the effective price determined under subsection (b) for
peanuts.
`(1) IN GENERAL- The Secretary shall make counter-cyclical payments
to peanut producers on a farm under this section for a crop of peanuts as
soon as practicable after determining under subsection (a) that the payments
are required for the crop year.
`(A) IN GENERAL- At the option of the Secretary, the peanut
producers on a farm may elect to receive up to 40 percent of the projected
counter-cyclical payment to be made under this section for a crop of
peanuts on completion of the first 2 months of the marketing season for
the crop, as determined by the Secretary.
`(B) REPAYMENT- The peanut producers on a farm shall repay to the
Secretary the amount, if any, by which the payment received by producers
on the farm (including any partial payments) exceeds the counter-cyclical
payment the producers on the farm are eligible for under this
section.
`SEC. 158E. PRODUCER AGREEMENTS.
`(a) COMPLIANCE WITH CERTAIN REQUIREMENTS-
`(1) REQUIREMENTS- Before the peanut producers on a farm may receive
direct payments or counter-cyclical payments with respect to the farm, the
peanut producers on the farm shall agree during the fiscal year or crop
year, respectively, for which the payments are received, in exchange for the
payments--
`(A) to comply with applicable highly erodible land conservation
requirements under subtitle B of title XII of the Food Security Act of
1985 (16 U.S.C. 3811 et seq.);
`(B) to comply with applicable wetland conservation requirements
under subtitle C of title XII of that Act (16 U.S.C. 3821 et
seq.);
`(C) to comply with the planting flexibility requirements of
section 158F; and
`(D) to use a quantity of the land on the farm equal to the peanut
acres, for an agricultural or conserving use, and not for a
nonagricultural commercial or industrial use, as determined by the
Secretary.
`(2) COMPLIANCE- The Secretary may promulgate such regulations as
the Secretary considers necessary to ensure peanut producer compliance with
paragraph (1).
`(1) IN GENERAL- The Secretary shall not require the peanut
producers on a farm to repay a direct payment or counter-cyclical payment if
a foreclosure has occurred with respect to the farm and the Secretary
determines that forgiving the repayment is appropriate to provide fair and
equitable treatment.
`(2) COMPLIANCE WITH REQUIREMENTS-
`(A) IN GENERAL- This subsection shall not void the
responsibilities of the peanut producers on a farm under subsection (a) if
the peanut producers on the farm continue or resume operation, or control,
of the farm.
`(B) APPLICABLE REQUIREMENTS- On the resumption of operation or
control over the farm by the peanut producers on the farm, the
requirements of subsection (a) in effect on the date of the foreclosure
shall apply.
`(c) TRANSFER OR CHANGE OF INTEREST IN FARM-
`(1) TERMINATION- Except as provided in paragraph (5), a transfer of
(or change in) the interest of the peanut producers on a farm in peanut
acres for which direct payments or counter-cyclical payments are made shall
result in the termination of the payments with respect to the peanut acres,
unless the transferee or owner of the acreage agrees to assume all
obligations under subsection (a).
`(2) EFFECTIVE DATE- The termination takes effect on the date of the
transfer or change.
`(3) TRANSFER OF PAYMENT BASE AND YIELD- The Secretary shall not
impose any restriction on the transfer of the peanut acres or payment yield
of a farm as part of a transfer or change described in paragraph
(1).
`(4) MODIFICATION- At the request of the transferee or owner, the
Secretary may modify the requirements of subsection (a) if the modifications
are consistent with the purposes of subsection (a), as determined by the
Secretary.
`(5) EXCEPTION- If a peanut producer entitled to a direct payment or
counter-cyclical payment dies, becomes incompetent, or is otherwise unable
to receive the payment, the Secretary shall make the payment, in accordance
with regulations promulgated by the Secretary.
`(d) ACREAGE REPORTS- As a condition on the receipt of any benefits
under this chapter, the Secretary shall require the peanut producers on a farm
to submit to the Secretary acreage reports for the farm.
`(e) TENANTS AND SHARECROPPERS- In carrying out this chapter, the
Secretary shall provide adequate safeguards to protect the interests of
tenants and sharecroppers.
`(f) SHARING OF PAYMENTS- The Secretary shall provide for the sharing
of direct payments and counter-cyclical payments among the peanut producers on
a farm on a fair and equitable basis.
`SEC. 158F. PLANTING FLEXIBILITY.
`(a) PERMITTED CROPS- Subject to subsection (b), any commodity or crop
may be planted on peanut acres on a farm.
`(b) LIMITATIONS AND EXCEPTIONS REGARDING CERTAIN COMMODITIES-
`(1) LIMITATIONS- The planting of the following agricultural
commodities shall be prohibited on peanut acres:
`(B) Vegetables (other than lentils, mung beans, and dry
peas).
`(C) In the case of the 2003 and subsequent crops of an
agricultural commodity, wild rice.
`(2) EXCEPTIONS- Paragraph (1) shall not limit the planting of an
agricultural commodity specified in paragraph (1)--
`(A) in any region in which there is a history of double-cropping
of peanuts with agricultural commodities specified in paragraph (1), as
determined by the Secretary, in which case the double-cropping shall be
permitted;
`(B) on a farm that the Secretary determines has a history of
planting agricultural commodities specified in paragraph (1) on peanut
acres, except that direct payments and counter-cyclical payments shall be
reduced by an acre for each acre planted to the agricultural commodity;
or
`(C) by the peanut producers on a farm that the Secretary
determines has an established planting history of a specific agricultural
commodity specified in paragraph (1), except that--
`(i) the quantity planted may not exceed the average annual
planting history of the agricultural commodity by the peanut producers
on the farm during the 1996 through 2001 crop years (excluding any crop
year in which no plantings were made), as determined by the Secretary;
and
`(ii) direct payments and counter-cyclical payments shall be
reduced by an acre for each acre planted to the agricultural
commodity.
`SEC. 158G. MARKETING ASSISTANCE LOANS AND LOAN DEFICIENCY PAYMENTS FOR
PEANUTS.
`(a) NONRECOURSE LOANS AVAILABLE-
`(1) AVAILABILITY- For each of the 2002 through 2006 crops of
peanuts, the Secretary shall make available to peanut producers on a farm
nonrecourse marketing assistance loans for peanuts produced on the
farm.
`(2) TERMS AND CONDITIONS- The loans shall be made under terms and
conditions that are prescribed by the Secretary and at the loan rate
established under subsection (b).
`(3) ELIGIBLE PRODUCTION- The producers on a farm shall be eligible
for a marketing assistance loan under this section for any quantity of
peanuts produced on the farm.
`(4) TREATMENT OF CERTAIN COMMINGLED COMMODITIES- In carrying out
this section, the Secretary shall make loans to peanut producers on a farm
that would be eligible to obtain a marketing assistance loan but for the
fact the peanuts owned by the peanut producers on the farm are commingled
with other peanuts of other producers in facilities unlicensed for the
storage of agricultural commodities by the Secretary or a State licensing
authority, if the peanut producers on a farm obtaining the loan agree to
immediately redeem the loan collateral in accordance with section
158E.
`(5) OPTIONS FOR OBTAINING LOAN- A marketing assistance loan under
this subsection, and loan deficiency payments under subsection (e), may be
obtained at the option of the peanut producers on a farm
through--
`(A) a designated marketing association of peanut producers that
is approved by the Secretary, which may own or construct necessary storage
facilities. In the Southeast and Southwest areas such designated marketing
association shall be operated primarily on behalf of peanut producers. The
designated area marketing association shall be allowed to form marketing
pools for peanuts by type and quality, including the creation of a
separate pool for Valencia peanuts in New Mexico;
`(B) the Farm Service Agency; or
`(C) a loan servicing agent approved by the
Secretary.
`(6) LOAN SERVICING AGENT- If approved by a majority of historical
peanut producers in a State voting in a referendum conducted by the
Secretary, as a condition of the Secretary's approval of an entity to serve
as a loan servicing agent or to handle or store peanuts for producers that
receive any marketing loan benefits in the State, the entity shall agree to
provide adequate storage (if available) and handling of peanuts at the
commercial rate to other approved loan servicing agents and marketing
associations.
`(b) LOAN RATE- The loan rate for a marketing assistance loan for
peanuts under subsection (a) shall be equal to $400 per ton.
`(1) IN GENERAL- A marketing assistance loan for peanuts under
subsection (a) shall have a term of 9 months beginning on the first day of
the first month after the month in which the loan is made.
`(2) EXTENSIONS PROHIBITED- The Secretary may not extend the term of
a marketing assistance loan for peanuts under subsection (a).
`(d) REPAYMENT RATE- The Secretary shall permit peanut producers on a
farm to repay a marketing assistance loan for peanuts under subsection (a) at
a rate that is the lesser of--
`(1) the loan rate established for peanuts under subsection (b),
plus interest (as determined by the Secretary); or
`(2) a rate that the Secretary determines will--
`(A) minimize potential loan forfeitures;
`(B) minimize the accumulation of stocks of peanuts by the Federal
Government;
`(C) minimize the cost incurred by the Federal Government in
storing peanuts; and
`(D) allow peanuts produced in the United States to be marketed
freely and competitively, both domestically and
internationally.
`(e) LOAN DEFICIENCY PAYMENTS-
`(1) AVAILABILITY- The Secretary may make loan deficiency payments
available to the peanut producers on a farm that, although eligible to
obtain a marketing assistance loan for peanuts under subsection (a), agree
to forgo obtaining the loan for the peanuts in return for payments under
this subsection.
`(2) AMOUNT- A loan deficiency payment under this subsection shall
be obtained by multiplying--
`(A) the loan payment rate determined under paragraph (3) for
peanuts; by
`(B) the quantity of the peanuts produced by the peanut producers
on the farm, excluding any quantity for which the producers on the farm
obtain a loan under subsection (a).
`(3) LOAN PAYMENT RATE- For purposes of this subsection, the loan
payment rate shall be the amount by which--
`(A) the loan rate established under subsection (b);
exceeds
`(B) the rate at which a loan may be repaid under subsection
(d).
`(4) TIME FOR PAYMENT- The Secretary shall make a payment under this
subsection to the peanut producers on a farm with respect to a quantity of
peanuts as of the earlier of--
`(A) the date on which the peanut producers on the farm marketed
or otherwise lost beneficial interest in the peanuts, as determined by the
Secretary; or
`(B) the date the peanut producers on the farm request the
payment.
`(f) COMPLIANCE WITH CONSERVATION REQUIREMENTS- As a condition of the
receipt of a marketing assistance loan under subsection (a), the peanut
producers on a farm shall comply during the term of the loan with--
`(1) applicable highly erodible land conservation requirements under
subtitle B of title XII of the Food Security Act of 1985 (16 U.S.C. 3811 et
seq.); and
`(2) applicable wetland conservation requirements under subtitle C
of title XII of that Act (16 U.S.C. 3821 et seq.).
`(g) REIMBURSABLE AGREEMENTS AND PAYMENT OF EXPENSES- To the maximum
extent practicable, the Secretary shall implement any reimbursable agreements
or provide for the payment of expenses under this chapter in a manner that is
consistent with the implementation of the agreements or payment of the
expenses for other commodities.
`(h) AREA MARKETING ASSOCIATION COSTS- If approved by a majority of
historical peanut producers in a State voting in a referendum conducted by the
Secretary, the Secretary shall deduct in a marketing assistance loan made to
an area marketing association in a marketing area in the State, such costs as
the area marketing association may reasonably incur in carrying out the
responsibilities, operations, and activities of the association and Commodity
Credit Corporation under this section.
`(i) DEFINITION OF COMMINGLE- In this section and section 158H, the
term `commingle', with respect to peanuts, means--
`(1) the mixing of peanuts produced on different farms by the same
or different producers; or
`(2) the mixing of peanuts pledged for marketing assistance loans
with peanuts that are not pledged for marketing assistance loans, to
facilitate storage.
`SEC. 158H. QUALITY IMPROVEMENT.
`(a) OFFICIAL INSPECTION-
`(1) IN GENERAL- All peanuts placed under a marketing assistance
loan under section 158G or otherwise sold or marketed shall be officially
inspected and graded by a Federal or State inspector.
`(2) ACCOUNTING FOR COMMINGLED PEANUTS- If approved by a majority of
historical peanut producers in a State voting in a referendum conducted by
the Secretary, all peanuts stored commingled with peanuts covered by a
marketing assistance loan in the State shall be graded and exchanged on a
dollar value basis, unless the Secretary determines that the beneficial
interest in the peanuts covered by the marketing assistance loan have been
transferred to other parties prior to demand for delivery.
`(b) TERMINATION OF PEANUT ADMINISTRATIVE COMMITTEE- The Peanut
Administrative Committee established under Marketing Agreement No. 1436, which
regulates the quality of domestically produced peanuts under the Agricultural
Adjustment Act (7 U.S.C. 601 et seq.), reenacted with amendments by the
Agricultural Marketing Agreement Act of 1937, is terminated.
`(c) ESTABLISHMENT OF PEANUT STANDARDS BOARD-
`(1) IN GENERAL- The Secretary shall establish a Peanut Standards
Board for the purpose of assisting in the establishment of quality standards
with respect to peanuts.
`(2) COMPOSITION- The Secretary shall appoint members to the Board
that, to the maximum extent practicable, reflect all regions and segments of
the peanut industry.
`(3) DUTIES- The Board shall assist the Secretary in establishing
quality standards for peanuts.
`(d) CROPS- This section shall apply beginning with the 2002 crop of
peanuts.'.
(b) CONFORMING AMENDMENTS-
(1) The chapter heading of chapter 2 of subtitle D of the Federal
Agriculture Improvement and Reform Act of 1996 (7 U.S.C. prec. 7271) is
amended by striking `PEANUTS AND'.
(2) Section 155 of the Federal Agriculture Improvement and Reform
Act of 1996 (7 U.S.C. 7271) is repealed.
SEC. 152. TERMINATION OF MARKETING QUOTAS FOR PEANUTS AND COMPENSATION
TO PEANUT QUOTA HOLDERS.
(a) REPEAL OF MARKETING QUOTAS FOR PEANUTS- Effective beginning with
the 2002 crop of peanuts, part VI of subtitle B of title III of the
Agricultural Adjustment Act of 1938 (7 U.S.C. 1357 et seq.) is
repealed.
(b) COMPENSATION OF QUOTA HOLDERS-
(1) DEFINITIONS- In this subsection:
(i) IN GENERAL- The term `peanut quota holder' means a person or
entity that owns a farm that--
(I) held a peanut quota established for the farm for the 2001
crop of peanuts under part VI of subtitle B of title III of the
Agricultural Adjustment Act of 1938 (7 U.S.C. 1357 et seq.) (as in
effect before the amendment made by subsection
(a));
(II) if there was not such a quota established for the farm
for the 2001 crop of peanuts, would be eligible to have such a quota
established for the farm for the 2002 crop of peanuts, in the absence
of the amendment made by subsection (a); or
(III) is otherwise a farm that was eligible for such a quota
as of the effective date of the amendments made by this
section.
(ii) SEED OR EXPERIMENTAL PURPOSES- The Secretary shall apply
the definition of `peanut quota holder' without regard to temporary
leases, transfers, or quotas for seed or experimental
purposes.
(B) SECRETARY- The term `Secretary' means the Secretary of
Agriculture.
(2) CONTRACTS- The Secretary shall offer to enter into a contract
with peanut quota holders for the purpose of providing compensation for the
lost value of quota as a result of the repeal of the marketing quota program
for peanuts under the amendment made by subsection (a).
(3) PAYMENT PERIOD- Under a contract, the Secretary shall make
payments to an eligible peanut quota holder for each of fiscal years 2002
through 2006.
(4) TIME FOR PAYMENT- The payments required under the contracts
shall be provided in 5 equal installments not later than September 30 of
each of fiscal years 2002 through 2006.
(5) PAYMENT AMOUNT- The amount of the payment for a fiscal year to a
peanut quota holder under a contract shall be equal to the product obtained
by multiplying--
(B) the actual farm poundage quota (excluding any quantity for
seed and experimental peanuts) established for the farm of a peanut quota
holder under section 358-1(b) of the Agricultural Adjustment Act of 1938
(7 U.S.C. 1358-1(b)) (as in effect prior to the amendment made by
subsection (a)) for the 2001 marketing year.
(6) ASSIGNMENT OF PAYMENTS-
(A) IN GENERAL- The provisions of section 8(g) of the Soil
Conservation and Domestic Allotment Act (16 U.S.C. 590h(g)), relating to
assignment of payments, shall apply to the payments made to peanut quota
holders under the contracts.
(B) NOTICE- The peanut quota holder making the assignment, or the
assignee, shall provide the Secretary with notice, in such manner as the
Secretary may require, of any assignment made under this
subsection.
(c) CONFORMING AMENDMENTS-
(1) ADMINISTRATIVE PROVISIONS- Section 361 of the Agricultural
Adjustment Act of 1938 (7 U.S.C. 1361) is amended by striking
`peanuts,'.
(2) ADJUSTMENT OF QUOTAS- Section 371 of the Agricultural Adjustment
Act of 1938 (7 U.S.C. 1371) is amended--
(A) in the first sentence of subsection (a), by striking
`peanuts,'; and
(B) in the first sentence of subsection (b), by striking
`peanuts'.
(3) REPORTS AND RECORDS- Section 373 of the Agricultural Adjustment
Act of 1938 (7 U.S.C. 1373) is amended--
(A) in the first sentence of subsection (a)--
(i) by striking `peanuts,' each place it
appears;
(ii) by inserting `and' after `from producers,';
and
(iii) by striking `for producers, all' and all that follows
through the period at the end of the sentence and inserting `for
producers.'; and
(B) in subsection (b), by striking `peanuts,'.
(4) EMINENT DOMAIN- Section 378(c) of the Agricultural Adjustment
Act of 1938 (7 U.S.C. 1378(c)) is amended in the first sentence--
(A) by striking `cotton,' and inserting `cotton and';
and
(B) by striking `and peanuts,'.
(d) CROPS- This section and the amendments made by this section apply
beginning with the 2002 crop of peanuts.
Subtitle D--Administration
SEC. 161. MARKETING ORDERS FOR CANEBERRIES.
(a) IN GENERAL- Section 8c of the Agricultural Adjustment Act (7
U.S.C. 608c), reenacted with amendments by the Agricultural Marketing
Agreement Act of 1937, is amended--
(1) in subsection (2)(A), by inserting `caneberries (including
raspberries, blackberries, and loganberries),' after `other than pears,
olives, grapefruit, cherries,'; and
(2) in subsection (6)(I), by striking `tomatoes,,' and inserting
`tomatoes, caneberries (including raspberries, blackberries, and
loganberries),'.
(b) CONFORMING AMENDMENT- Section 8e(a) of the Agricultural Adjustment
Act (7 U.S.C. 608e-l(a)), reenacted with amendments by the Agricultural
Marketing Agreement Act of 1937, is amended in the first sentence by striking
`or apples' and inserting `apples, or caneberries (including raspberries,
blackberries, and loganberries)'.
SEC. 162. RESERVE STOCK LEVEL.
Section 301(b)(14)(C) of the Agricultural Adjustment Act of 1938 (7
U.S.C. 1301(b)(14)(C)) is amended--
(1) in clause (i), by striking `100,000,000' and inserting
`75,000,000'; and
(2) in clause (ii), by striking `15 percent' and inserting `10
percent'.
SEC. 163. FARM RECONSTITUTIONS.
(a) IN GENERAL- Section 316(a)(1)(A)(ii) of the Agricultural
Adjustment Act of 1938 (7 U.S.C. 1314b(a)(1)(A)(ii)) is amended by adding at
the end the following: `Notwithstanding any other provision of law, for the
2002 crop only, the Secretary shall allow special farm reconstitutions, in
lieu of lease and transfer of allotments and quotas, under this section, in
accordance with such conditions as are established by the Secretary.'.
(1) IN GENERAL- The Secretary of Agriculture shall conduct a study
on the effects on the limitation on producers to move quota to a farm other
than the farm to which the quota was initially assigned under part I of
subtitle B of title III of the Agricultural Adjustment Act of 1938 (7 U.S.C.
1311 et seq.).
(2) REPORT- Not later than 90 days after the date of enactment of
this Act, the Secretary shall submit to the Committee on Agriculture of the
House of Representatives and the Committee on Agriculture, Nutrition, and
Forestry of the Senate a report on the results of the study.
SEC. 164. ADJUSTMENT AUTHORITY RELATED TO URUGUAY ROUND
COMPLIANCE.
Section 161 of the Federal Agriculture Improvement and Reform Act of
1996 (7 U.S.C. 7281) is amended by adding at the end the following:
`(e) ADJUSTMENT AUTHORITY RELATED TO URUGUAY ROUND COMPLIANCE- If the
Secretary determines that expenditures under subtitles A through D that are
subject to the total allowable domestic support levels under the Uruguay Round
Agreements (as defined in section 2 of the Uruguay Round Agreements Act (19
U.S.C. 3501)), as in effect on the date of enactment of this subsection, will
exceed the allowable levels for any applicable reporting period, the Secretary
may make adjustments in the amount of the expenditures to ensure that the
expenditures do not exceed, but are not less than, the allowable
levels.
`(f) EXPENDITURE LIMITATION- If the Secretary makes a determination
under subsection (e) that expenditures will exceed allowable levels for any
applicable reporting period and notifies Congress of the Secretary's intent to
make adjustments to ensure that expenditures do not exceed allowable levels,
no expenditures under any program proposed to be adjusted by the Secretary may
be made after the date that is 18 months after the date of the determination,
unless a joint resolution disapproving the adjustments is enacted by both
Houses of Congress within 60 days of the date of the notification.
`(g) ANNUAL REPORT ON DOMESTIC SUPPORT- Not later than April 30 of
each year, the Secretary shall submit to the Committee on Agriculture of the
House of Representatives and the Committee on Agriculture, Nutrition, and
Forestry of the Senate a report that describes--
`(1) estimated levels of domestic support for agricultural
commodities during the current marketing year and the following marketing
year;
`(2) the manner in which the Secretary intends to notify the World
Trade Organization of the estimated levels; and
`(3) proposed changes to domestic support programs subject to
reduction commitments made in the context of WTO trade
negotiations.'.
SEC. 165. SUSPENSION OF PERMANENT PRICE SUPPORT AUTHORITY.
Section 171 of the Federal Agriculture Improvement and Reform Act of
1996 (7 U.S.C. 7301) is amended--
(1) by striking `2002' each place it appears and inserting `2006';
and
(2) in subsection (a)(1)--
(A) by striking subparagraph (E); and
(B) by redesignating subparagraphs (F) through (I) as
subparagraphs (E) through (H), respectively.
SEC. 166. COMMODITY PURCHASES.
(a) IN GENERAL- Section 191 of the Federal Agriculture Improvement and
Reform Act of 1996 (7 U.S.C. 7331 et seq.) is amended to read as
follows:
`SEC. 191. COMMODITY PURCHASES.
`(a) IN GENERAL- To purchase agricultural commodities under this
section, the Secretary shall use funds of the Commodity Credit Corporation in
an amount equal to--
`(1) for each of fiscal years 2002 and 2003, $130,000,000, of which
not less than $100,000,000 shall be used for the purchase of specialty
crops;
`(2) for fiscal year 2004, $150,000,000, of which not less than
$120,000,000 shall be used for the purchase of specialty crops;
`(3) for fiscal year 2005, $170,000,000, of which not less than
$140,000,000 shall be used for the purchase of specialty crops;
`(4) for fiscal year 2006, $200,000,000, of which not less than
$170,000,000 shall be used for the purchase of specialty crops;
and
`(5) for fiscal year 2007, $0.
`(b) OTHER PURCHASES- The Secretary shall ensure that purchases of
agricultural commodities under this section are in addition to purchases by
the Secretary under any other law.
`(c) PURCHASES BY DEPARTMENT OF DEFENSE FOR SCHOOL LUNCH PROGRAM- The
Secretary shall provide not less than $50,000,000 for each fiscal year of the
funds made available under subsection (a) to the Secretary of Defense to
purchase fresh fruits and vegetables for distribution to schools and service
institutions in accordance with section 6(a) of the Richard B. Russell
National School Lunch Act (42 U.S.C. 1755(a)) in a manner prescribed by the
Secretary of Agriculture.
`(d) PURCHASES FOR EMERGENCY FOOD ASSISTANCE PROGRAM- The Secretary
shall use not less than $40,000,000 for each fiscal year of the funds made
available under subsection (a) to purchase agricultural commodities for
distribution under the Emergency Food Assistance Act of 1983 (7 U.S.C. 7501 et
seq.).'.
(b) SENSE OF THE SENATE CONCERNING PURCHASES OF CRANBERRIES-
(1) FINDINGS- Congress finds that--
(A) the price per hundred pounds of cranberries has dropped from
approximately $70 to approximately $10;
(B) the cost of producing cranberries is between $30 and $35 per
hundred pounds, which is much more than the price per hundred pounds of
cranberries for each of the past 2 years;
(C) there is a serious economic crisis among cranberry growers in
the United States, especially in the States of Wisconsin, Massachusetts,
and New Jersey;
(D) the Cranberry Marketing Committee has issued 2 marketing
orders, but the marketing orders have not led to higher
prices;
(E) although Congress directed the Secretary of Agriculture to use
$30,000,000 to purchase cranberries in fiscal year 2001, the price of
cranberries has not risen significantly; and
(F) the cranberry industry faces a surplus of cranberries and
continuing low prices for cranberries.
(2) SENSE OF THE SENATE- It is the sense of the Senate that the
Secretary of Agriculture should attempt to alleviate the economic crisis
among cranberry growers by continuing to expend for each fiscal year for the
purchase of cranberries the same amount as the Secretary expended for fiscal
year 2001.
SEC. 167. HARD WHITE WHEAT INCENTIVE PAYMENTS.
Section 193 of the Federal Agriculture Improvement and Reform Act of
1996 (7 U.S.C. 1508) is amended to read as follows:
`SEC. 193. HARD WHITE WHEAT INCENTIVE PAYMENTS.
`(a) IN GENERAL- For the period of crop years 2003 through 2005, the
Secretary shall use $40,000,000 of funds of the Commodity Credit Corporation
to provide incentive payments to producers of hard white wheat to ensure that
hard white wheat, produced on a total of not more than 2,000,000 acres, meets
minimum quality standards established by the Secretary.
`(b) APPLICATION- The amounts payable to producers in the form of
payments under this section shall be determined through the submission of bids
by producers in such manner as the Secretary may prescribe.
`(c) DEMAND FOR WHEAT- To be eligible to obtain a payment under this
section, a producer shall demonstrate to the Secretary the availability of
buyers and end-users for the wheat that is the covered by the
payment.'.
SEC. 168. LIVESTOCK ASSISTANCE PROGRAM.
Section 194 of the Federal Agriculture Improvement and Reform Act of
1996 (7 U.S.C. 6933) is amended to read as follows:
`SEC. 194. LIVESTOCK ASSISTANCE PROGRAM.
`(a) IN GENERAL- The Secretary shall carry out a program to provide
livestock feed assistance to livestock producers affected by
disasters.
`(b) AUTHORIZATION OF APPROPRIATIONS- There are authorized to be
appropriated to carry out this section $500,000,000 for each of fiscal years
2003 through 2008.'.
SEC. 169. PAYMENT LIMITATIONS; NUTRITION AND COMMODITY
PROGRAMS.
(1) IN GENERAL- Section 1001 of the Food Security Act of 1985 (7
U.S.C. 1308) is amended to read as follows:
`SEC. 1001. PAYMENT LIMITATIONS.
`(a) DEFINITIONS- In this section and sections 1001A through
1001F:
`(1) BENEFICIAL INTEREST- The term `beneficial interest' means an
interest in an entity that is at least--
`(B) a lower percentage, which the Secretary shall establish, on a
case-by-case basis, as needed to achieve the purposes of this section and
sections 1001A through 1001F, including effective implementation of
section 1001A(b).
`(2) COUNTER-CYCLICAL PAYMENT- The term `counter-cyclical payment'
means a payment made under section 114 or 158D of the Federal Agriculture
Improvement and Reform Act of 1996.
`(3) DIRECT PAYMENT- The term `direct payment' means a payment made
under section 113 or 158C of the Federal Agriculture Improvement and Reform
Act of 1996.
`(A) IN GENERAL- The term `entity' means--
`(i) an entity that (subject to the requirements of this section
and section 1001A) is eligible to receive a payment under subsection (b)
or (c);
`(ii) a corporation, joint stock company, association, limited
partnership, charitable organization, a grantor of a revocable trust, or
other similar entity (as determined by the Secretary);
and
`(iii) an entity that is participating in a farming operation as
a partner in a general partnership or as a participant in a joint
venture.
`(B) EXCLUSION- Except in section 1001F, the term `entity' does
not include an entity that is a general partnership or joint
venture.
`(5) INDIVIDUAL- The term `individual' means--
`(A) a natural person, and minor children of the natural person
(as determined by the Secretary), that (subject to the requirements of
this section and section 1001A) is eligible to receive a payment under
subsection (b) or (c); and
`(B) an individual participating in a farming operation as a
partner in a general partnership, a participant in a joint venture, a
grantor of a revocable trust, or a participant in a similar entity (as
determined by the Secretary).
`(6) LOAN COMMODITY- The term `loan commodity' has the meaning given
the term in section 102 of the Federal Agriculture Improvement and Reform
Act of 1996.
`(7) SECRETARY- The term `Secretary' means the Secretary of
Agriculture.
`(b) LIMITATIONS ON DIRECT AND COUNTER-CYCLICAL PAYMENTS- Subject to
subsections (d) through (i), the total amount of direct payments and
counter-cyclical payments that an individual or entity may receive, directly
or indirectly, during any fiscal year shall not exceed $75,000.
`(c) LIMITATIONS ON MARKETING LOAN GAINS, LOAN DEFICIENCY PAYMENTS,
AND COMMODITY CERTIFICATE TRANSACTIONS-
`(1) IN GENERAL- Subject to subsections (d) through (i), the total
amount of the payments and benefits described in paragraph (2) that an
individual or entity may receive, directly or indirectly, during any crop
year shall not exceed $150,000.
`(2) PAYMENTS AND BENEFITS- Paragraph (1) shall apply to the
following payments and benefits:
`(A) MARKETING LOAN GAINS-
`(i) REPAYMENT GAINS- Any gain realized by a producer from
repaying a marketing assistance loan under section 131 or 158G(a) of the
Federal Agriculture Improvement and Reform Act of 1996 for a crop of any
loan commodity or peanuts, respectively, at a lower level than the
original loan rate established for the loan commodity or peanuts under
section 132 or 158G(d) of that Act, respectively.
`(ii) FORFEITURE GAINS- In the case of settlement of a marketing
assistance loan under section 131 or 158G(a) of that Act for a crop of
any loan commodity or peanuts, respectively, by forfeiture, the amount
by which the loan amount exceeds the repayment amount for the loan if
the loan had been settled by repayment instead of
forfeiture.
`(B) LOAN DEFICIENCY PAYMENTS- Any loan deficiency payment
received for a loan commodity or peanuts under section 135 or 158G(e) of
that Act, respectively.
`(C) COMMODITY CERTIFICATES- Any gain realized from the use of a
commodity certificate issued by the Commodity Credit Corporation, as
determined by the Secretary, including the use of a certificate for the
settlement of a marketing assistance loan made under section 131 or
158G(a) of that Act.
`(d) SETTLEMENT OF CERTAIN LOANS- Notwithstanding subtitle C and
section 158G of the Federal Agriculture Improvement and Reform Act of 1996, if
the amount of payments and benefits described in subsection (c)(2) attributed
directly or indirectly to an individual or entity for a crop year reaches the
limitation described in subsection (c)(1)--
`(1) the portion of any unsettled marketing assistance loan made
under section 131 or 158G(a) of that Act attributed directly or indirectly
to the individual or entity shall be settled through the repayment of the
total loan principal, plus applicable interest; and
`(2) the Secretary may refuse to provide to the producer for the
crop year any additional marketing assistance loans under section 131 or
158G(a) of that Act.
`(e) PAYMENTS TO INDIVIDUALS AND ENTITIES-
`(1) INTERESTS WITHIN THE SAME ENTITY- All individuals or entities
that are owners of an entity, including shareholders, may not collectively
receive payments directly or indirectly that are attributable to the
ownership interests in the entity for a fiscal or corresponding crop year
that exceed the limitations established under subsections (b) and
(c).
`(2) ALL INTERESTS OF AN INDIVIDUAL OR ENTITY- An individual or
entity may not receive, directly or indirectly, through all ownership
interests of the individual or entity from all sources, payments for a
fiscal or corresponding crop year that exceed the limitations established
under subsections (b) and (c).
`(f) MARRIED COUPLES- During a fiscal and corresponding crop year, the
total amount of payments and benefits described in subsections (b) and (c)
that a married couple may receive directly or indirectly may not
exceed--
`(1) the limits described in subsections (b) and (c);
plus
`(2) if each spouse meets the other requirements established under
this section and section 1001A, a combined total of an additional
$50,000.
`(g) PUBLIC SCHOOLS- The provisions of this section that limit
payments to any individual or entity shall not be applicable to land owned by
a public school district or land owned by a State that is used to maintain a
public school.
`(h) TIME LIMITS- The Secretary shall promulgate regulations that
establish time limits for the various steps involved with notice, hearing,
decision, and the appeals procedure in order to ensure expeditious handling
and settlement of payment limitation disputes.
`(i) GOOD FAITH RELIANCE- Notwithstanding any other provision of law,
an action taken by an individual or other entity in good faith on action or
advice of an authorized representative of the Secretary may be accepted as
meeting the requirements of this section or section 1001A, to the extent the
Secretary determines it is desirable in order to provide fair and equitable
treatment.'.
(2) SUBSTANTIVE CHANGE- Section 1001A(a) of the Food Security Act of
1985 (7 U.S.C. 1308-1(a)) is amended--
(A) in the section heading, by striking `prevention of creation of
entities to qualify as separate persons;' and inserting `substantive
change;';
(B) by striking `(a) PREVENTION' and all that follows through the
end of paragraph (2) and inserting the following:
`(1) IN GENERAL- The Secretary may not approve (for purposes of the
application of the limitations under this section) any change in a farming
operation that otherwise will increase the number of individuals or entities
to which the limitations under this section are applied unless the Secretary
determines that the change is bona fide and substantive.
`(2) FAMILY MEMBERS- For the purpose of paragraph (1), the addition
of a family member to a farming operation under the criteria established
under subsection (b)(3)(B) shall be considered a bona fide and substantive
change in the farming operation.';
(C) in the first sentence of paragraph (3)--
(i) by striking `as a separate person'; and
(ii) by inserting `, as determined by the Secretary' before the
period at the end; and
(D) by striking paragraph (4).
(3) ACTIVELY ENGAGED IN FARMING- Section 1001A(b) of the Food
Security Act of 1985 (7 U.S.C. 1308-1(b)) is amended--
(A) by striking paragraph (1) and inserting the
following:
`(1) IN GENERAL- To be eligible to receive, directly or indirectly,
payments or benefits (as described in subsections (b) and (c) of section
1001 as being subject to limitation) with respect to a particular farming
operation an individual or entity shall be actively engaged in farming with
respect to the operation, as provided under paragraphs (2), (3), and
(4).';
(i) in subparagraph (A)(i), by striking subclause (II) and
inserting the following:
`(II) personal labor and active personal management (in
accordance with subparagraph (F));';
(ii) by striking subparagraph (B) and inserting the
following:
`(B) ENTITIES- An entity (as defined in section 1001(a)) shall be
considered as actively engaged in farming with respect to a farming
operation if--
`(i) the entity separately makes a significant contribution
(based on the total value of the farming operation) of capital,
equipment, or land;
`(ii)(I) the stockholders or members that collectively own at
least 50 percent of the combined beneficial interest in the entity make
a significant contribution of personal labor or active personal
management to the operation; or
`(II) in the case of a corporation or entity in which all of the
beneficial interests are held by family members (as defined in paragraph
(3)(B))--
`(aa) any stockholder (or household comprised of a stockholder
and the spouse of the stockholder) who owns at least 10 percent of the
beneficial interest and makes a significant contribution of personal
labor or active personal management; or
`(bb) any combination of stockholders who collectively own at
least 10 percent of the beneficial interest and makes a significant
contribution of personal labor or active personal management;
and
`(iii) the standards provided in clauses (ii) and (iii) of
subparagraph (A), as applied to the entity, are met by the entity.';
and
(iii) by adding at the end the following:
`(E) ACTIVE PERSONAL MANAGEMENT- For an individual to be
considered to be providing active personal management under this paragraph
on behalf of the individual or entity, the management provided by the
individual shall be personally provided on a regular, substantial, and
continuous basis through the direct supervision and direction
of--
`(i) activities and labor involved in the farming operation;
and
`(ii) onsite services that are directly related and necessary to
the farming operation.
`(F) SIGNIFICANT CONTRIBUTION OF PERSONAL LABOR OR ACTIVE PERSONAL
MANAGEMENT-
`(i) IN GENERAL- For an individual to be considered to be
providing a significant contribution of personal labor or active
personal management under this paragraph on behalf of the individual or
entity, the total contribution of personal labor and active personal
management shall be at least equal to the lesser of--
`(I) 1,000 hours annually; or
`(II) 50 percent of the commensurate share of the total number
of hours of personal labor and active personal management required to
conduct the farming operation.
`(ii) MINIMUM NUMBER OF LABOR HOURS- For the purpose of clause
(i), the minimum number of labor hours required to produce each
commodity shall be equal to the number of hours that would be necessary
to conduct a farming operation for the production of each commodity that
is comparable in size to an individual or entity's commensurate share in
the farming operation for the production of the commodity, based on the
minimum number of hours per acre required to produce the commodity in
the State where the farming operation is located, as determined by the
Secretary.';
(i) by striking subparagraph (A) and inserting the
following:
`(A) LANDOWNERS- An individual or entity that is a landowner
contributing the owned land and that meets the standard provided in
clauses (ii) and (iii) of paragraph (2)(A), if--
`(i) the landowner share rents the land;
`(ii) the tenant is actively engaged in farming;
and
`(iii) the share received by the landowner is commensurate with
the share of the crop or income received as rent; or
`(iv)(I) the landowner makes a significant contribution of
active personal management;
`(II) the landowner formerly made a significant contribution of
personal labor or active personal management on the land for which
payments are received and ceased to make the contribution as a result of
a disability, as determined by the Secretary; or
`(III) the landowner or spouse of the landowner formerly made a
significant contribution of personal labor or active personal management
on the land for which payments are received and ceased to make the
contribution as a result of death or retirement, and 1 or more family
members of the landowner currently make a significant contribution of
personal labor or active personal management on the land.';
and
(ii) in subparagraph (B), by striking `persons' and inserting
`individuals and entities'; and
(i) in the paragraph heading, by striking `PERSONS' and
inserting `INDIVIDUALS AND ENTITIES';
(ii) in the matter preceding subparagraph (A), by striking
`persons' and inserting `individuals and entities'; and
(iii) in subparagraph (B)--
(I) in the subparagraph heading, by striking `PERSONS' and
inserting `INDIVIDUALS AND ENTITIES'; and
(II) by striking `person, or class of persons' and inserting
`individual or entity, or class of individuals or
entities';
(i) by striking `A person' and inserting `An individual or
entity'; and
(ii) by striking `such person' and inserting `the individual or
entity'; and
(F) in paragraph (6), by striking `a person' and inserting `an
individual or entity'.
(4) ADMINISTRATION- Section 1001A of the Food Security Act of 1985
(7 U.S.C. 1308-1) is amended by adding at the end the following:
`(A) IN GENERAL- During each of fiscal years 2002 through 2006,
the Office of Inspector General for the Department of Agriculture shall
conduct a review of the administration of the requirements of this section
and sections 1001, 1001B, 1001C, and 1001E in at least 6
States.
`(B) MINIMUM NUMBER OF COUNTIES- Each State review described in
subparagraph (A) shall cover at least 5 counties in the
State.
`(C) REPORT- Not later than 90 days after completing a review
described in subparagraph (A), the Inspector General for the Department of
Agriculture shall issue a final report to the Secretary of the findings of
the Inspector General.
`(2) EFFECT OF REPORT- If a report issued under paragraph (1)
reveals that significant problems exist in the implementation of payment
limitation requirements of this section and sections 1001, 1001B, 1001C, and
1001E in a State and the Secretary agrees that the problems exist, the
Secretary--
`(A) shall initiate a training program regarding the payment
limitation requirements; and
`(B) may require that all payment limitation determinations
regarding farming operations in the State be issued from the headquarters
of the Farm Service Agency.'.
(5) SCHEME OR DEVICE- Section 1001B of the Food Security Act of 1985
(7 U.S.C. 1308-2) is amended--
(A) by striking `person' each place it appears and inserting
`individual or entity'; and
(B) by striking `paragraphs (1) and (2)' and inserting
`subsections (b) and (c)'.
(6) FOREIGN INDIVIDUALS AND ENTITIES- Section 1001C(b) of the Food
Security Act of 1985 (7 U.S.C. 1308-3(b)) is amended in the first sentence
by striking `considered a person that is'.
(7) EDUCATION PROGRAM- Section 1001D(c) of the Food Security Act of
1985 (7 U.S.C. 1308-4(c)) is amended by striking `5 persons' and inserting
`5 individuals or entities'.
(8) REPORT TO CONGRESS- No later than 180 days after the date of
enactment of this Act, the Secretary of Agriculture shall provide 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--
(A) how State and county office employees are trained regarding
the payment limitation requirements of section 1001 through 1001E of the
Food Security Act of 1985 (7 U.S.C. 1308 through 1308-5);
(B) the general procedures used by State and county office
employees to identify potential violations of the payment limitation
requirements;
(C) the requirements for State and county office employees to
report serious violations of the payment limitation requirements,
including violations of section 1001B of that Act to the county committee,
higher level officials of the Farm Service Agency, and to the Office of
Inspector General; and
(D) the sanctions imposed against State and county office
employees who fail to report or investigate potential violations of the
payment limitation requirements.
(b) ADJUSTED GROSS INCOME LIMITATION- The Food Security Act of 1985 is
amended by inserting after section 1001E (7 U.S.C. 1308-5) the
following:
`SEC. 1001F. ADJUSTED GROSS INCOME LIMITATION.
`(a) DEFINITIONS- In this section:
`(1) ADJUSTED GROSS INCOME- The term `adjusted gross income' means
adjusted gross income of an individual or entity--
`(A) as defined in section 62 of the Internal Revenue Code of 1986
and implemented in accordance with procedures established by the
Secretary; and
`(B) that is earned directly or indirectly from all agricultural
and nonagricultural sources of an individual or entity for a fiscal or
corresponding crop year.
`(2) AVERAGE ADJUSTED GROSS INCOME-
`(A) IN GENERAL- The term `average adjusted gross income' means
the average adjusted gross income of an individual or entity for each of
the 3 preceding taxable years.
`(B) EFFECTIVE ADJUSTED GROSS INCOME- In the case of an individual
or entity that does not have an adjusted gross income for each of the 3
preceding taxable years, the Secretary shall establish rules that provide
the individual or entity with an effective adjusted gross income for the
applicable year.
`(b) LIMITATION- Notwithstanding any other provision of title I of the
Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7201 et
seq.), an individual or entity shall not be eligible for a payment or benefit
described in subsection (b) or (c) of section 1001 if the average adjusted
gross income of the individual or entity exceeds $2,500,000.
`(c) CERTIFICATION- To comply with the limitation under subsection
(b), an individual or entity shall provide to the Secretary--
`(1) a certification by a certified public accountant or another
third party that is acceptable to the Secretary that the average adjusted
gross income of the individual or entity does not exceed $2,500,000;
or
`(2) information and documentation regarding the adjusted gross
income of the individual or entity through other procedures established by
the Secretary.
`(d) COMMENSURATE REDUCTION- In the case of a payment or benefit made
in a fiscal year or corresponding crop year to an entity that has an average
adjusted gross income of $2,500,000 or less, the payment shall be reduced by
an amount that is commensurate with the direct and indirect ownership interest
in the entity of each individual who has an average adjusted gross income in
excess of $2,500,000 for that fiscal year or corresponding crop year.
`(e) GENERAL PARTNERSHIPS AND JOINT VENTURES- For purposes of this
section, a general partnership or joint venture shall be considered an
entity.'.
(1) INCREASE IN BENEFITS TO HOUSEHOLDS WITH CHILDREN- Section 5(e)
of the Food Stamp Act of 1977 (7 U.S.C. 2014(e)) is amended by striking
paragraph (1) and inserting the following:
`(A) IN GENERAL- Subject to the other provisions of this
paragraph, the Secretary shall allow for each household a standard
deduction that is equal to the greater of--
`(i) the applicable percentage specified in subparagraph (D) of
the applicable income standard of eligibility established under
subsection (c)(1); or
`(ii) the minimum deduction specified in subparagraph
(E).
`(B) GUAM- The Secretary shall allow for each household in Guam a
standard deduction that is--
`(i) equal to the applicable percentage specified in
subparagraph (D) of twice the income standard of eligibility established
under subsection (c)(1) for the 48 contiguous States and the District of
Columbia; but
`(ii) not less than the minimum deduction for Guam specified in
subparagraph (E).
`(C) HOUSEHOLDS OF 6 OR MORE MEMBERS- The income standard of
eligibility established under subsection (c)(1) for a household of 6
members shall be used to calculate the standard deduction for each
household of 6 or more members.
`(D) APPLICABLE PERCENTAGE- For the purpose of subparagraph (A),
the applicable percentage shall be--
`(i) 8 percent for each of fiscal years 2002 through
2004;
`(ii) 8.25 percent for each of fiscal years 2005 and
2006;
`(iii) 8.5 percent for each of fiscal years 2007 and
2008;
`(iv) 8.75 percent for fiscal year 2009; and
`(v) 9 percent for each of fiscal years 2010 and
2011.
`(E) MINIMUM DEDUCTION- The minimum deduction shall be $134, $229,
$189, $269, and $118 for the 48 contiguous States and the District of
Columbia, Alaska, Hawaii, Guam, and the Virgin Islands of the United
States, respectively.'.
(2) EXCESS SHELTER EXPENSE DEDUCTION-
(A) IN GENERAL- Section 5(e)(7)(B) of the Food Stamp Act of 1977
(7 U.S.C. 2014(e)(7)(B)) is amended--
(i) in clause (v), by striking `and' at the end;
and
(ii) by striking clause (vi) and inserting the
following:
`(vi) for fiscal year 2002, $354, $566, $477, $416, and $279 per
month, respectively;
`(vii) for fiscal year 2003, $390, $624, $526, $458, and $307
per month, respectively; and
`(viii) for fiscal years 2004 and each fiscal year thereafter,
the applicable amount for the preceding fiscal year, as adjusted to
reflect changes for the 12-month period ending the preceding November 30
in the Consumer Price Index for All Urban Consumers published by the
Bureau of Labor Statistics of the Department of
Labor.'.
(B) PROSPECTIVE AMENDMENTS- Effective October 1, 2009, section
5(e)(7) of the Food Stamp Act of 1977 (7 U.S.C. 2014(e)(7)) is
amended--
(i) by striking subparagraph (B); and
(ii) by redesignating subparagraph (C) as subparagraph
(B).
(3) PARTICIPANT EXPENSES- Section 6(d)(4)(I)(i)(I) of the Food Stamp
Act of 1977 (7 U.S.C. 2015(d)(4)(I)(i)(I)) is amended by striking `, except
that the State agency may limit such reimbursement to each participant to
$25 per month'.
(4) FEDERAL REIMBURSEMENT- Section 16(h)(3) of the Food Stamp Act of
1977 (7 U.S.C. 2025(h)(3)) is amended by striking `such total amount shall
not exceed an amount representing $25 per participant per month for costs of
transportation and other actual costs (other than dependent care costs) and'
and inserting `the amount of the reimbursement for dependent care expenses
shall not exceed'.
(5) EFFECTIVENESS OF CERTAIN PROVISIONS- Section 413 and subsections
(c) and (d) of section 434, and the amendments made by section 413 and
subsections (c) and (d) of section 434, shall have no effect.
(d) LOAN DEFICIENCY PAYMENTS-
(1) ELIGIBILITY- Section 135 of the Federal Agriculture Improvement
and Reform Act of 1996 (7 U.S.C. 7235) (as amended by section 126(1)) is
amended by striking subsection (a) and inserting the following:
`(a) IN GENERAL- The Secretary may make loan deficiency payments
available to--
`(1) producers on a farm that, although eligible to obtain a
marketing assistance loan under section 131 with respect to a loan
commodity, agree to forgo obtaining the loan for the covered commodity in
return for payments under this section; and
`(2) effective only for the 2000 and 2001 crop years, producers
that, although not eligible to obtain such a marketing assistance loan under
section 131, produce a loan commodity.'.
(2) BENEFICIAL INTEREST- Section 135(e)(1) of the Federal
Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7235(e)) (as
amended by section 126(2)) is amended by striking `A producer' and inserting
`Effective for the 2001 through 2006 crops, a producer'.
(e) LOAN AUTHORIZATION LEVELS- Section 346(b) of the Consolidated Farm
and Rural Development Act (7 U.S.C. 1994(b)) (as amended by section 529(1)(A))
is amended by striking paragraph (1) and inserting the following:
`(1) IN GENERAL- The Secretary may make or guarantee loans under
subtitles A and B from the Agricultural Credit Insurance Fund provided for
in section 309 for not more than $3,796,000,000 for each of fiscal years
2002 through 2006, of which, for each fiscal year--
`(A) $770,000,000 shall be for direct loans, of
which--
`(i) $205,000,000 shall be for farm ownership loans under
subtitle A; and
`(ii) $565,000,000 shall be for operating loans under subtitle
B; and
`(B) $3,026,000,000 shall be for guaranteed loans, of
which--
`(i) $1,000,000,000 shall be for guarantees of farm ownership
loans under subtitle A; and
`(ii) $2,026,000,000 shall be for guarantees of operating loans
under subtitle B.'.
(f) BEGINNING FARMER AND RANCHER DEVELOPMENT PROGRAM- In addition to
funds made available under the Agriculture, Rural Development, Food and Drug
Administration, and Related Agencies Appropriations Act, 2002 (Public Law
107-76), the Secretary of Agriculture shall use $5,000,000 of funds of the
Commodity Credit Corporation for fiscal year 2002 to make loans described in
section 346(b)(2)(A)(i) of the Consolidated Farm and Rural Development Act (7
U.S.C. 1994(b)(2)(A)(i)).
(g) INITIATIVE FOR FUTURE AGRICULTURE AND FOOD SYSTEMS- Section
401(b)(1) of the Agricultural Research, Extension, and Education Reform Act of
1998 (7 U.S.C. 7621(b)(1)) (as amended by section 741) is amended--
(1) in subparagraph (A), by striking `$120,000,000' and inserting
`$130,000,000'; and
(2) in subparagraph (B), by striking `$145,000,000' and inserting
`$225,000,000'.
(h) SPECIALTY CROP INSURANCE INITIATIVE-
(1) RESEARCH AND DEVELOPMENT FUNDING- Section 522(e) of the Federal
Crop Insurance Act (7 U.S.C. 1522(e)) is amended by striking paragraph (1)
and inserting the following:
`(1) REIMBURSEMENTS- Of the amounts made available from the
insurance fund established under section 516(c), the Corporation may use to
provide reimbursements under subsection (b) not more than--
`(A) $32,000,000 for fiscal year 2002;
`(B) $27,500,000 for each of fiscal years 2003 and
2004;
`(C) $25,000,000 for each of fiscal years 2005 and 2006;
and
`(D) $15,000,000 for fiscal year 2007 and each subsequent fiscal
year.'.
(2) EDUCATION AND INFORMATION FUNDING- Section 524(a)(4) of the
Federal Crop Insurance Act (7 U.S.C. 1524(a)(4)) is amended by striking
subparagraph (A) and inserting the following:
`(A) for the education and information program established under
paragraph (2)--
`(i) $10,000,000 for fiscal year 2003;
`(ii) $13,000,000 for fiscal year 2004;
`(iii) $15,000,000 for each of fiscal years 2005 and 2006;
and
`(iv) $5,000,000 for fiscal year 2007 and each subsequent fiscal
year; and'.
(3) REPORTS- Not later than September 30, 2002, the Secretary of
Agriculture shall submit to the Committee on Agriculture of the House of
Representatives and the Committee on Agriculture, Nutrition, and Forestry of
the Senate a report that describes--
(A) the progress made by the Corporation in research and
development of innovative risk management products to include cost of
production insurance that provides coverage for specialty crops, paying
special attention to apples, asparagus, blueberries (wild and domestic),
cabbage, canola, carrots, cherries, Christmas trees, citrus fruits,
cucumbers, dry beans, eggplants, floriculture, grapes, greenhouse and
nursery agricultural commodities, green peas, green peppers, hay, lettuce,
maple, mushrooms, pears, potatoes, pumpkins, snap beans, spinach, squash,
strawberries, sugar beets, and tomatoes;
(B) the progress made by the Corporation in increasing the use of
risk management products offered through the Corporation by producers of
specialty crops, by small- and moderate-sized farms, and in areas that are
underserved, as determined by the Secretary; and
(C) how the additional funding provided under the amendments made
by this section has been used.
(i) EFFECTIVE DATE- This section and the amendments made by this
section take effect 1 day after the date of enactment of this Act.
SEC. 170. RESTRICTION OF COMMODITY AND CROP INSURANCE PAYMENTS, LOANS,
AND BENEFITS TO PREVIOUSLY CROPPED LAND; FOOD STAMP PROGRAM FOR CERTAIN
QUALIFIED ALIENS.
(a) RESTRICTION OF COMMODITY AND CROP INSURANCE PAYMENTS, LOANS, AND
BENEFITS TO PREVIOUSLY CROPPED LAND- Section 194 of the Federal Agriculture
Improvement and Reform Act of 1996 (Public Law 104-127; 110 Stat. 945) is
amended to read as follows:
`SEC. 194. RESTRICTION OF COMMODITY AND CROP INSURANCE PAYMENTS, LOANS,
AND BENEFITS TO PREVIOUSLY CROPPED LAND.
`(a) DEFINITIONS- In this section:
`(1) AGRICULTURAL COMMODITY- The term `agricultural commodity' has
the meaning given the term in section 102 of the Agricultural Trade Act of
1978 (7 U.S.C. 5602).
`(2) EXCLUSIONS- The term `agricultural commodity' does not include
forage, livestock, timber, forest products, or hay.
`(3) IN GENERAL- The term `considered planted' shall include
cropland that has been prevented from being planted at least 8 out of the
past 10 years due to disaster related conditions as determined by the
Secretary.
`(1) IN GENERAL- Notwithstanding any other provision of this title,
except as provided in paragraph (2), the Secretary shall not provide a crop
payment, crop loan, or other crop benefit under this title to an owner or
producer, with respect to an agricultural commodity produced on land during
a crop year unless the land has been planted, considered planted, or devoted
to an agricultural commodity during --
`(A) at least 1 of the 5 crop years preceding the 2002 crop year;
or
`(B) at least 3 of the 10 crop years preceding the 2002 crop
year.
`(2) CROP ROTATION- Paragraph (1) shall not apply to an owner or
producer, with respect to any agricultural commodity planted or considered
planted, on land if the land--
`(A) has been planted, considered planted, or devoted to an
agricultural commodity during at least 1 of the 20 crop years preceding
the 2002 crop year; and
`(B) has been maintained, and will continue to be maintained,
using long-term crop rotation practices, as determined by the
Secretary.
`(c) CROP INSURANCE- Notwithstanding any provision of the Federal Crop
Insurance Act (7 U.S.C. 1501 et seq.), the Federal Crop Insurance Corporation
shall not pay premium subsidies or administrative costs of a reinsured company
for insurance regarding a crop insurance policy of a producer under that Act
unless the land that is covered by the insurance policy for an agricultural
commodity--
`(1) has been planted, considered planted, or devoted to an
agricultural commodity during--
`(A) at least 1 of the 5 crop years preceding the 2002 crop year;
or
`(B) at least 3 of the 10 crop years preceding the 2002 crop year;
or
`(2)(A) has been planted, considered planted, or devoted to an
agricultural commodity during at least 1 of the 20 crop years preceding the
2002 crop year; and
`(B) has been maintained, and will continue to be maintained, using
long-term crop rotation practices, as determined by the
Secretary.
`(d) CONSERVATION RESERVE LAND- For purposes of this section, land
that is enrolled in the conservation reserve program established under
subchapter B of chapter 1 of subtitle D of title XII of the Food Security Act
of 1985 (16 U.S.C.3831 et seq.) shall be considered planted to an agricultural
commodity.
`(e) LAND UNDER THE JURISDICTION OF AN INDIAN TRIBE- For purposes of
this section, land that is under the jurisdiction of an Indian tribe (as
defined in section 4 of the Indian Self-Determination and Education Assistance
Act (25 U.S.C. 450b)) shall be considered planted to an agricultural commodity
if--
`(1) the land is planted to an agricultural commodity after the date
of enactment of this subsection as part of an irrigation project
that--
`(A) is authorized by the Bureau of Reclamation or the Bureau of
Indian Affairs; and
`(B) is under construction prior to the date of enactment of this
subsection; or
`(2) the land becomes available for planting because of a settlement
or statutory authorization of a water rights claim by an Indian tribe after
the date of enactment of this subsection.'.
(b) PARTIAL RESTORATION OF BENEFITS TO LEGAL IMMIGRANTS- Section
403(c)(2)(L) of the Personal Responsibility and Work Opportunity
Reconciliation Act of 1996 (8 U.S.C. 1613(c)(2)(L)) (as amended by section
452(a)(2)(A)) is amended by inserting `provided to individuals under the age
of 18' after `benefits'.
(c) FOOD STAMP EXCEPTION FOR CERTAIN QUALIFIED ALIENS-
(1) IN GENERAL- Section 402(a)(2) of the Personal Responsibility and
Work Opportunity Reconciliation Act of 1996 (8 U.S.C. 1612(a)(2)) (as
amended by section 452(c)(2)) is amended by adding at the end the
following:
`(M) FOOD STAMP EXCEPTION FOR CERTAIN QUALIFIED ALIENS-
`(i) With respect to eligibility for benefits for the specified
Federal program described in paragraph (3)(B), paragraph (1) shall not
apply, subject to the exclusion in clause (ii), to any individual who
has continuously resided in the United States as a qualified alien for a
period of 5 years or more beginning on the date on which the qualified
alien entered the United States.
`(ii) No alien who enters the country illegally and remains in
the United States illegally for a period of one year or longer or has
been in the United States as an illegal alien for a period of one year
or longer, regardless of their status upon entering the country or their
current status as a qualified alien, shall be eligible under clause (i)
for benefits for the specified Federal program described in paragraph
(3)(B).
`(iii) Clause (ii) shall not apply to a qualified alien who has
continuously resided in the United States for a period of 5 years or
more as of the date of enactment of this Act.'.
(2) EFFECTIVE DATE- The amendment made by paragraph (1) takes effect
on April 1, 2003.
SEC. 171. REDUCTION OF COMMODITY BENEFITS TO IMPROVE NUTRITION
ASSISTANCE.
(a) INCOME PROTECTION PRICES FOR COUNTER-CYCLICAL PAYMENTS- Section
114(c) of the Federal Agriculture Improvement and Reform Act of 1996 (as
amended by section 111) is amended by striking paragraph (2) and inserting the
following:
`(2) INCOME PROTECTION PRICES- The income protection prices for
contract commodities under paragraph (1)(A) are as follows:
`(A) Wheat, $3.4460 per bushel.
`(B) Corn, $2.3472 per bushel.
`(C) Grain sorghum, $2.3472 per bushel.
`(D) Barley, $2.1973 per bushel.
`(E) Oats, $1.5480 per bushel.
`(F) Upland cotton, $0.6793 per pound.
`(G) Rice, $9.2914 per hundredweight.
`(H) Soybeans, $5.7431 per bushel.
`(I) Oilseeds (other than soybeans), $0.1049 per
pound.'.
(b) LOAN RATES FOR MARKETING ASSISTANCE LOANS-
(1) IN GENERAL- Section 132 of the Federal Agriculture Improvement
and Reform Act of 1996 (as amended by section 123(a)) is amended to read as
follows:
`SEC. 132. LOAN RATES.
`The loan rate for a marketing assistance loan under section 131 for a
loan commodity shall be--
`(1) in the case of wheat, $2.9960 per bushel;
`(2) in the case of corn, $2.0772 per bushel;
`(3) in the case of grain sorghum, $2.0772 per bushel;
`(4) in the case of barley, $1.9973 per bushel;
`(5) in the case of oats, $1.4980 per bushel;
`(6) in the case of upland cotton, $0.5493 per pound;
`(7) in the case of extra long staple cotton, $0.7965 per
pound;
`(8) in the case of rice, $6.4914 per hundredweight;
`(9) in the case of soybeans, $5.1931 per bushel;
`(10) in the case of oilseeds (other than soybeans), $0.0949 per
pound;
`(11) in the case of graded wool, $1.00 per pound;
`(12) in the case of nongraded wool, $0.40 per pound;
`(13) in the case of mohair, $2.00 per pound;
`(14) in the case of honey, $0.60 per pound;
`(15) in the case of dry peas, $6.78 per hundredweight;
`(16) in the case of lentils, $12.79 per hundredweight;
`(17) in the case of large chickpeas, $17.44 per hundredweight;
and
`(18) in the case of small chickpeas, $8.10 per
hundredweight.'.
(A) IN GENERAL- The amendment made by section 123(b) is
repealed.
(B) APPLICABILITY- Section 162 of the Federal Agriculture
Improvement and Reform Act of 1996 (7 U.S.C. 7282) shall be applied and
administered as if the amendment made by section 123(b) had not been
enacted.
(1) SIMPLIFIED RESOURCE ELIGIBILITY LIMIT- Section 5(g)(1) of the
Food Stamp Act of 1977 (7 U.S.C. 2014(g)(1)) is amended by striking `a
member who is 60 years of age or older' and inserting `an elderly or
disabled member'.
(2) INCREASE IN BENEFITS TO HOUSEHOLDS WITH CHILDREN- Section 5(e)
of the Food Stamp Act of 1977 (7 U.S.C. 2014(e)) is amended by striking
paragraph (1) and inserting the following:
`(A) IN GENERAL- Subject to the other provisions of this
paragraph, the Secretary shall allow a standard deduction for each
household that is--
`(i) equal to the applicable percentage specified in
subparagraph (D) of the income standard of eligibility established under
subsection (c)(1); but
`(ii) not less than the minimum deduction specified in
subparagraph (E).
`(B) GUAM- The Secretary shall allow a standard deduction for each
household in Guam that is--
`(i) equal to the applicable percentage specified in
subparagraph (D) of twice the income standard of eligibility established
under subsection (c)(1) for the 48 contiguous States and the District of
Columbia; but
`(ii) not less than the minimum deduction for Guam specified in
subparagraph (E).
`(C) HOUSEHOLDS OF 6 OR MORE MEMBERS- The income standard of
eligibility established under subsection (c)(1) for a household of 6
members shall be used to calculate the standard deduction for each
household of 6 or more members.
`(D) APPLICABLE PERCENTAGE- For the purpose of subparagraph (A),
the applicable percentage shall be--
`(i) 8 percent for each of fiscal years 2002 through
2004;
`(ii) 8.5 percent for each of fiscal years 2005 through
2007;
`(iii) 9 percent for each of fiscal years 2008 through 2010;
and
`(iv) 10 percent for each fiscal year
thereafter.
`(E) MINIMUM DEDUCTION- The minimum deduction shall be $134, $229,
$189, $269, and $118 for the 48 contiguous States and the District of
Columbia, Alaska, Hawaii, Guam, and the Virgin Islands of the United
States, respectively.'.
(3) EFFECTIVENESS OF CERTAIN PROVISIONS- Sections 413 and 165(c)(1)
shall have no effect.
SEC. 172. REPORTS ON EQUITABLE RELIEF AND MISACTION-MISINFORMATION
REQUESTS.
Section 195 of the Federal Agriculture Improvement and Reform Act of
1996 (Public Law 104-127; 110 Stat. 946) is amended to read as
follows:
`SEC. 195. REPORTS ON EQUITABLE RELIEF AND MISACTION-MISINFORMATION
REQUESTS.
`(a) IN GENERAL- Not later than 90 days after the date of enactment of
the Agriculture, Conservation, and Rural Enhancement Act of 2002 and not later
than December 1 of fiscal year 2003 and each subsequent fiscal year, the
Secretary shall submit to the Committee on Agriculture of the House of
Representatives and the Committee on Agriculture, Nutrition, and Forestry of
the Senate a report that describes--
`(1) the number of requests received by the Secretary during the
preceding fiscal year for equitable relief under programs carried out by the
Farm Service Agency and the Natural Resources Conservation Service,
including a description (by program) of--
`(A) the number of requests received;
`(B) the number of requests approved by the Secretary;
and
`(C) the basis for the approval or denial of the requests;
and
`(2) the number of requests received by the Secretary during the
preceding fiscal year for relief described in section 326 of the Food and
Agriculture Act of 1962 (7 U.S.C. 1339a) with respect to programs carried
out under this title, including a description (by program) of--
`(A) the number of requests received;
`(B) the number of requests approved by the Secretary;
and
`(C) the basis for the approval or denial of the
requests.
`(b) APPEALS- The Secretary, acting through the Director of the
National Appeals Division, shall include in each report submitted under
subsection (a) a description of actions taken by the Division taken during the
preceding fiscal year with respect to requests for relief described in
subsection (a).'.
SEC. 173. ESTIMATES OF NET FARM INCOME.
Title I of the Federal Agriculture Improvement and Reform Act of 1996
(7 U.S.C. 7201 et seq.) is amended by adding at the end the following:
`SEC. 197. ESTIMATES OF NET FARM INCOME.
`In each issuance of projections of net farm income, the Secretary
shall include (as determined by the Secretary)--
`(1) an estimate of the net farm income earned by commercial
producers in the United States; and
`(2) an estimate of the net farm income attributable to commercial
producers of each of--
`(B) loan commodities; and
`(C) agricultural commodities other than loan
commodities.'.
SEC. 174. COMMODITY CREDIT CORPORATION INVENTORY.
Section 5 of the Commodity Credit Corporation Charter Act (15 U.S.C.
714c) is amended in the last sentence by inserting before the period at the
end the following: `(including, at the option of the Corporation, the use of
private sector entities)'.
SEC. 175. AGRICULTURAL PRODUCERS SUPPLEMENTAL PAYMENTS AND
ASSISTANCE.
(a) IN GENERAL- The Secretary of Agriculture may use such funds of the
Commodity Credit Corporation as are necessary to provide payments and
assistance under Public Law 107-25 (115 Stat. 201) to persons that (as
determined by the Secretary)--
(1) are eligible to receive the payments or assistance;
but
(2) did not receive the payments or assistance prior to October 1,
2001.
(b) LIMITATION- The amount of payments or assistance provided under
Public Law 107-25 and this section to an eligible person described in
subsection (a) shall not exceed the amount of payments or assistance the
person would have been eligible to receive under Public Law 107-25.
Subtitle E--Payment Limitation Commission
SEC. 181. ESTABLISHMENT OF COMMISSION.
(a) ESTABLISHMENT- There is established a commission to be known as
the `Commission on the Application of Payment Limitations for Agriculture'
(referred to in this subtitle as the `Commission').
(A) IN GENERAL- The Commission shall be composed of 11 members
appointed as follows:
(i) 3 members shall be appointed by the President, of whom 2
shall be from land grant colleges or universities and have expertise in
agricultural economics.
(ii) 1 member shall be appointed by the Majority Leader of the
Senate.
(iii) 1 member shall be appointed by the Minority Leader of the
Senate.
(iv) 1 member shall be appointed by the Speaker of the House of
Representatives.
(v) 1 member shall be appointed by the Minority Leader of the
House of Representatives.
(vi) 1 member shall be appointed by the Chairman of the
Committee on Agriculture, Nutrition, and Forestry of the
Senate.
(vii) 1 member shall be appointed by the ranking minority member
of the Committee on Agriculture, Nutrition, and Forestry of the
Senate.
(viii) 1 member shall be appointed by the Chairman of the
Committee on Agriculture of the House of
Representatives.
(ix) 1 member shall be appointed by the ranking minority member
of the Committee on Agriculture of the House of
Representatives.
(B) DIVERSITY OF VIEWS- The appointing authorities under
subparagraph (A) shall seek to ensure that the membership of the
Commission has a diversity of experiences and expertise on the issues to
be studied by the Commission, such as agricultural production,
agricultural lending, farmland appraisal, agricultural accounting and
finance, and other relevant areas.
(2) FEDERAL GOVERNMENT EMPLOYMENT- The membership of the Commission
may include 1 or more employees of the Department of Agriculture or other
Federal agencies.
(3) DATE OF APPOINTMENTS- The appointment of a member of the
Commission shall be made not later than 60 days after the date of enactment
of this Act.
(1) TERM- A member shall be appointed for the life of the
Commission.
(2) VACANCIES- A vacancy on the Commission--
(A) shall not affect the powers of the Commission;
and
(B) shall be filled in the same manner as the original appointment
was made.
(d) INITIAL MEETING- Not later than 30 days after the date on which
all members of the Commission have been appointed, the Commission shall hold
the initial meeting of the Commission.
(e) MEETINGS- The Commission shall meet--
(1) on a regular basis, as determined by the Chairperson;
and
(2) at the call of the Chairperson or a majority of the members of
the Commission.
(f) QUORUM- A majority of the members of the Commission shall
constitute a quorum for the transaction of business, but a lesser number of
members may hold hearings.
(g) CHAIRPERSON- The Secretary shall appoint 1 of the members of the
Commission to serve as Chairperson of the Commission.
SEC. 182. DUTIES.
(a) COMPREHENSIVE REVIEW- The Commission shall conduct a comprehensive
review of--
(1) the laws (including regulations) that apply or fail to apply
payment limitations to agricultural commodity and conservation programs
administered by the Secretary;
(2) the impact that failing to apply effective payment limitations
has on--
(A) the agricultural producers that participate in the
programs;
(B) overproduction of agricultural commodities;
(C) the prices that agricultural producers receive for
agricultural commodities in the marketplace; and
(D) land prices and rental rates;
(3) the feasibility of improving the application and effectiveness
of payment limitation requirements, including the use of commodity
certificates and the forfeiture of loan collateral; and
(4) alternatives to payment limitation requirements in effect on the
date of enactment of this Act that would apply meaningful limitations to
improve the effectiveness and integrity of the requirements.
(b) RECOMMENDATIONS- In carrying out the review under subsection (a),
the Commission shall develop specific recommendations for modifications to
applicable legislation and regulations that would improve payment limitation
requirements.
(c) REPORT- Not later than 1 year after the date of enactment of this
Act, the Commission shall submit to the President, the Committee on
Agriculture of the House of Representatives, and the Committee on Agriculture,
Nutrition, and Forestry of the Senate a report containing the results of the
review conducted, and any recommendations developed, under this
section.
SEC. 183. POWERS.
(a) HEARINGS- The Commission may hold such hearings, meet and act at
such times and places, take such testimony, and receive such evidence as the
Commission considers advisable to carry out this subtitle.
(b) INFORMATION FROM FEDERAL AGENCIES-
(1) IN GENERAL- The Commission may secure directly from a Federal
agency such information as the Commission considers necessary to carry out
this subtitle.
(2) PROVISION OF INFORMATION- On request of the Chairperson of the
Commission, the head of the agency shall provide the information to the
Commission.
(c) POSTAL SERVICES- The Commission may use the United States mails in
the same manner and under the same conditions as other agencies of the Federal
Government.
(d) ASSISTANCE FROM SECRETARY- The Secretary may provide to the
Commission appropriate office space and such reasonable administrative and
support services as the Commission may request.
SEC. 184. COMMISSION PERSONNEL MATTERS.
(a) COMPENSATION OF MEMBERS-
(1) NON-FEDERAL EMPLOYEES- A member of the Commission who is not an
officer or employee of the Federal Government shall be compensated at a rate
equal to the daily equivalent of the annual rate of basic pay prescribed for
level IV of the Executive Schedule under section 5315 of title 5, United
States Code, for each day (including travel time) during which the member is
engaged in the performance of the duties of the Commission.
(2) FEDERAL EMPLOYEES- A member of the Commission who is an officer
or employee of the Federal Government shall serve without compensation in
addition to the compensation received for the services of the member as an
officer or employee of the Federal Government.
(b) TRAVEL EXPENSES- A member of the Commission shall be allowed
travel expenses, including per diem in lieu of subsistence, at rates
authorized for an employee of an agency under subchapter I of chapter 57 of
title 5, United States Code, while away from the home or regular place of
business of the member in the performance of the duties of the
Commission.
SEC. 185. FEDERAL ADVISORY COMMITTEE ACT.
The Federal Advisory Committee Act (5 U.S.C. App.) shall not apply to
the Commission or any proceeding of the Commission.
SEC. 186. FUNDING.
Of the funds of the Commodity Credit Corporation, the Secretary shall
use not more than $100,000 to carry out this subtitle.
SEC. 187. TERMINATION OF COMMISSION.
The Commission shall terminate on the day after the date on which the
Commission submits the report of the Commission under section 182(c).
Subtitle F--Emergency Agriculture Assistance
SEC. 191. INCOME LOSS ASSISTANCE.
(a) IN GENERAL- The Secretary of Agriculture (referred to in this
subtitle as the `Secretary') shall use $1,800,000,000 of funds of the
Commodity Credit Corporation to make emergency financial assistance available
to producers on a farm that have incurred qualifying income losses in calendar
year 2001, including losses due to army worms.
(b) ADMINISTRATION- The Secretary shall make assistance available
under this section in the same manner as provided under section 815 of the
Agriculture, Rural Development, Food and Drug Administration, and Related
Agencies Appropriations Act, 2001 (Public Law 106-387; 114 Stat. 1549A-55),
including using the same loss thresholds for the quantity and economic losses
as were used in administering that section.
(c) USE OF FUNDS FOR CASH PAYMENTS- The Secretary may use funds made
available under this section to make, in a manner consistent with this
section, cash payments not for crop disasters, but for income loss to carry
out the purposes of this section.
SEC. 192. LIVESTOCK ASSISTANCE PROGRAM.
(a) IN GENERAL- The Secretary shall use $500,000,000 of the funds of
the Commodity Credit Corporation to make and administer payments for livestock
losses to producers for 2001 losses in a county that has received an emergency
designation by the President or the Secretary after January 1, 2001, of which
$12,000,000 shall be made available for the American Indian livestock program
under section 806 of the Agriculture, Rural Development, Food and Drug
Administration, and Related Agencies Appropriations Act, 2001 (Public Law
106-387; 114 Stat. 1549A-51).
(b) ADMINISTRATION- The Secretary shall make assistance available
under this section in the same manner as provided under section 806 of the
Agriculture, Rural Development, Food and Drug Administration, and Related
Agencies Appropriations Act, 2001 (Public Law 105-277; 114 Stat.
1549A-51).
SEC. 193. MARKET LOSS ASSISTANCE FOR APPLE PRODUCERS.
(a) IN GENERAL- The Secretary of Agriculture shall use $100,000,000 of
funds of the Commodity Credit Corporation for fiscal year 2002 to make
payments to apple producers, as soon as practicable after the date of
enactment of this Act, for the loss of markets during the 2000 crop
year.
(b) PAYMENT QUANTITY- A payment to the producers on a farm for the
2000 crop year under this section shall be made on the lesser of--
(1) the quantity of apples produced by the producers on the farm
during the 2000 crop year; or
(2) 5,000,000 pounds of apples.
(c) LIMITATIONS- The Secretary shall not establish a payment
limitation, or income eligibility limitation, with respect to payments made
under this section.
SEC. 194. COMMODITY CREDIT CORPORATION.
The Secretary shall use the funds, facilities, and authorities of the
Commodity Credit Corporation to carry out this subtitle.
SEC. 195. ADMINISTRATIVE EXPENSES.
(a) IN GENERAL- In addition to funds otherwise available, not later
than 30 days after the date of enactment of this Act, out of any funds in the
Treasury not otherwise appropriated, the Secretary of the Treasury shall
transfer to the Secretary of Agriculture to pay the salaries and expenses of
the Department of Agriculture in carrying out this subtitle $50,000,000, to
remain available until expended.
(b) RECEIPT AND ACCEPTANCE- The Secretary shall be entitled to
receive, shall accept, and shall use to carry out this section the funds
transferred under subsection (a), without further appropriation.
SEC. 196. REGULATIONS.
(a) IN GENERAL- The Secretary may promulgate such regulations as are
necessary to implement this subtitle.
(b) PROCEDURE- The promulgation of the regulations and administration
of this subtitle shall be made without regard to--
(1) the notice and comment provisions of section 553 of title 5,
United States Code;
(2) the Statement of Policy of the Secretary of Agriculture
effective July 24, 1971 (36 Fed. Reg. 13804), relating to notices of
proposed rulemaking and public participation in rulemaking; and
(3) chapter 35 of title 44, United States Code (commonly known as
the `Paperwork Reduction Act').
(c) CONGRESSIONAL REVIEW OF AGENCY RULEMAKING- In carrying out this
section, the Secretary shall use the authority provided under section 808 of
title 5, United States Code.
SEC. 197. EMERGENCY REQUIREMENT.
The entire amount necessary to carry out this subtitle is designated
by Congress as an emergency requirement pursuant to section 252(e) of the
Balanced Budget and Emergency Deficit Control Act of 1985 (2 U.S.C.
901(e)).
TITLE II--CONSERVATION
Subtitle A--Conservation Security
SEC. 201. CONSERVATION SECURITY PROGRAM.
Subtitle D of title XII of the Food Security Act of 1985 (16 U.S.C.
3830 et seq.) is amended by inserting after chapter 1 the following:
`CHAPTER 2--CONSERVATION SECURITY AND FARMLAND
PROTECTION
`Subchapter A--Conservation Security Program
`SEC. 1238. DEFINITIONS.
`(1) BASE PAYMENT- The term `base payment' means the amount paid to
a producer under a conservation security contract that is equal to the total
of the amounts described in clauses (i) and (ii) of subparagraphs (C), (D),
or (E) of section 1238C(b)(1), as appropriate.
`(2) BEGINNING FARMER OR RANCHER- The term `beginning farmer or
rancher' has the meaning provided under section 343(a) of the Consolidated
Farm and Rural Development Act (7 U.S.C. 1999(a)).
`(3) BONUS AMOUNT- The term `bonus amount' means the amount paid to
a producer under a conservation security contract that is equal to the total
of the amounts described in clauses (iii) and (iv) of subparagraph (C), and
of clause (iii) of subparagraph (D) or (E), of section 1238C(b)(1), as
appropriate.
`(4) CONSERVATION PRACTICE- The term `conservation practice' means a
land-based farming technique that--
`(A) requires planning, implementation, management, and
maintenance; and
`(B) promotes 1 or more of the purposes described in section
1238A(a).
`(5) CONSERVATION SECURITY CONTRACT- The term `conservation security
contract' means a contract described in section 1238A(e).
`(6) CONSERVATION SECURITY PLAN- The term `conservation security
plan' means a plan described in section 1238A(c).
`(7) CONSERVATION SECURITY PROGRAM- The term `conservation security
program' means the program established under section 1238A(a).
`(8) INDIAN TRIBE- The term `Indian tribe' has the meaning given the
term in section 4 of the Indian Self-Determination and Education Assistance
Act (25 U.S.C. 450b).
`(9) NUTRIENT MANAGEMENT- The term `nutrient management' means
management of the quantity, source, placement, form, and timing of the land
application of nutrients and other additions to soil on land enrolled in the
conservation security program--
`(A) to achieve or maintain adequate soil fertility for
agricultural production;
`(B) to minimize the potential for loss of environmental quality,
including soil, water, fish and wildlife habitat, and air and water
quality; and
`(C) to reduce energy consumption.
`(A) IN GENERAL- The term `producer' means an owner, operator,
landlord, tenant, or sharecropper that--
`(i) shares in the risk of producing any crop or livestock;
and
`(ii) is entitled to share in the crop or livestock available
for marketing from a farm (or would have shared had the crop or
livestock been produced).
`(B) HYBRID SEED GROWERS- In determining whether a grower of
hybrid seed is a producer, the Secretary shall not take into consideration
the existence of a hybrid seed contract.
`(11) RESOURCE OF CONCERN- The term `resource of concern' means a
conservation priority of a State and locality under section
1238A(c)(3).
`(12) RESOURCE-CONSERVING CROP- The term `resource-conserving crop'
means--
`(B) a legume grown for use as--
`(ii) seed for planting; or
`(C) a legume-grass mixture;
`(D) a small grain grown in combination with a grass or legume,
whether interseeded or planted in succession; and
`(E) such other plantings, including trees and annual grasses, as
the Secretary considers appropriate for a particular area.
`(13) RESOURCE-CONSERVING CROP ROTATION- The term
`resource-conserving crop rotation' means a crop rotation that--
`(A) includes at least 1 resource-conserving crop;
`(C) improves soil fertility and tilth; and
`(D) interrupts pest cycles.
`(14) RESOURCE MANAGEMENT SYSTEM- The term `resource management
system' means a system of conservation practices and management relating to
land or water use that is designed to prevent resource degradation and
permit sustained use of land, water, and other natural resources, as defined
in accordance with the technical guide of the Natural Resources Conservation
Service.
`(15) SECRETARY- The term `Secretary' means the Secretary of
Agriculture, acting through the Natural Resources Conservation
Service.
`(16) TIER I CONSERVATION PRACTICE- The term `Tier I conservation
practice' means a conservation practice described in section
1238A(d)(4)(A)(ii).
`(17) TIER I CONSERVATION SECURITY CONTRACT- The term `Tier I
conservation security contract' means a contract described in section
1238A(d)(4)(A).
`(18) TIER II CONSERVATION PRACTICE- The term `Tier II conservation
practice' means a conservation practice described in section
1238A(d)(4)(B)(ii).
`(19) TIER II CONSERVATION SECURITY CONTRACT- The term `Tier II
conservation security contract' means a contract described in section
1238A(d)(4)(B).
`(20) TIER III CONSERVATION PRACTICE- The term `Tier III
conservation practice' means a conservation practice described in section
1238A(d)(4)(C)(ii).
`(21) TIER III CONSERVATION SECURITY CONTRACT- The term `Tier III
conservation security contract' means a contract described in section
1238A(d)(4)(C).
`SEC. 1238A. CONSERVATION SECURITY PROGRAM.
`(a) IN GENERAL- For each of fiscal years 2003 through 2006, the
Secretary shall establish a conservation security program to assist owners and
operators of agricultural operations to promote, as is applicable for each
operation--
`(1) conservation of soil, water, energy, and other related
resources;
`(2) soil quality protection and improvement;
`(3) water quality protection and improvement;
`(4) air quality protection and improvement;
`(5) soil, plant, or animal health and well-being;
`(6) diversity of flora and fauna;
`(7) on-farm conservation and regeneration of biological resources,
including plant and animal germplasm;
`(8) wetland restoration, conservation, and enhancement;
`(9) wildlife habitat management, with special emphasis on species
identified by any natural heritage program of the applicable
State;
`(10) reduction of greenhouse gas emissions and enhancement of
carbon sequestration;
`(11) environmentally sound management of invasive species;
or
`(12) any similar conservation purpose (as determined by the
Secretary).
`(1) ELIGIBLE OWNERS AND OPERATORS- To be eligible to participate in
the conservation security program (other than to receive technical
assistance under section 1238C(g) for the development of conservation
security contracts), a producer shall--
`(A) develop and submit to the Secretary, and obtain the approval
of the Secretary of, a conservation security plan that meets the
requirements of subsection (c)(1); and
`(B) enter into a conservation security contract with the
Secretary to carry out the conservation security plan.
`(A) IN GENERAL- Except as provided in subparagraph (C)(iii),
private agricultural land (including cropland, grassland, prairie land,
pasture land, and rangeland) and land under the jurisdiction of an Indian
tribe shall be eligible for enrollment in the conservation security
program.
`(B) FORESTED LAND- Private forested land shall be eligible for
enrollment in the conservation security program if the forested land is
part of the agricultural land described in subparagraph (A), including
land that is used for--
`(v) silvopasture systems; and
`(vi) such other integrated agroforestry uses as the Secretary
may determine to be appropriate.
`(i) CONSERVATION RESERVE PROGRAM- Land enrolled in the
conservation reserve program under subchapter B of chapter 1 shall not
be eligible for enrollment in the conservation security program except
for land described in section 1231(b)(6).
`(ii) WETLANDS RESERVE PROGRAM- Land enrolled in the wetlands
reserve program established under subchapter C of chapter 1 shall not be
eligible for enrollment in the conservation security
program.
`(iii) CONVERSION TO CROPLAND- Land that is used for crop
production after the date of enactment of this subchapter that had not
been in crop production for at least 3 of the 10 years preceding that
date (except for land enrolled in the conservation reserve program under
subchapter B of chapter 1) shall not be eligible for enrollment in the
conservation security program.
`(3) SUSTAINABLE ECONOMIC USES- The Secretary shall permit a
producer to implement, with respect to all eligible land covered by a
conservation security plan, sustainable economic uses (including Tier II
conservation practices) that--
`(A) maintain the agricultural nature of the land;
and
`(B) are consistent with the natural resource and environmental
benefits of the conservation security plan.
`(c) CONSERVATION SECURITY PLANS-
`(1) IN GENERAL- A conservation security plan shall--
`(A) identify the resources and designated land to be conserved
under the conservation security plan;
`(i) the tier of conservation security contracts, and the
particular conservation practices, to be implemented, maintained, or
improved, in accordance with subsection (d) on the land covered by the
conservation security contract for the specified term;
and
`(ii) as appropriate for the land covered by the conservation
security contract, the minimum number, type, extent, and scope of
conservation practices described in clause (i) that are required to be
carried out on the land before the producer is eligible to
receive--
`(C) contain a schedule for the implementation, maintenance, or
improvement of the conservation practices described in the conservation
security plan during the term of the conservation security
contract;
`(D) meet the highly erodible land and wetland conservation
requirements of subtitles B and C; and
`(E) identify, and authorize the implementation of, sustainable
economic uses described in subsection (b)(3).
`(2) COMPREHENSIVE PLANNING- The Secretary shall encourage owners
and operators that enter into conservation security contracts--
`(A) to undertake a comprehensive examination of the opportunities
for conserving natural resources and improving the profitability,
environmental health, and quality of life in relation to their entire
agricultural operation;
`(B) to develop a long-term strategy for implementing, monitoring,
and evaluating conservation practices and environmental results in the
entire agricultural operation;
`(C) to participate in other Federal, State, local, or private
conservation programs;
`(D) to maintain the agricultural integrity of the land;
and
`(E) to adopt innovative conservation technologies and management
practices or update existing technologies and practices.
`(3) STATE, TRIBAL, AND LOCAL CONSERVATION PRIORITIES-
`(A) IN GENERAL- To the maximum extent practicable and in a manner
consistent with the conservation security program, each conservation
security plan shall address, at least, the conservation priorities of the
State or Indian tribe, and locality in which the agricultural operation is
located.
`(B) ADMINISTRATION- The conservation priorities of the State,
Indian tribe, and locality in which the agricultural operation is located
shall be--
`(i)(I) determined by the State conservationist, in consultation
with the State technical committee established under subtitle G and the
local subcommittee of the State technical committee;
and
`(II) approved by the Secretary; and
`(ii) in the case of land under the jurisdiction of an Indian
tribe--
`(I) determined by the Indian tribe, after consultation with
the Secretary; and
`(II) approved by the Secretary.
`(A) IN GENERAL- During the development of a conservation security
plan by a producer, at the request of the producer, the Secretary shall
supply to the producer a statement of the minimum number, type, and scope
of conservation practices described in paragraph (1)(B)(ii).
`(B) APPROVAL FOR BASE PAYMENTS- If a conservation security plan
submitted to the Secretary contains, in addition to paragraph (1)(C), the
conservation practices referred to in paragraph (1)(B)(ii)--
`(i) the Secretary shall approve the conservation security plan;
and
`(ii) the producer of the conservation security plan, on
approval of and compliance with the plan, as determined by the
Secretary, shall be eligible to receive a base payment.
`(C) APPROVAL FOR BONUS AMOUNTS- If a conservation security plan
submitted to the Secretary contains a proposal for the implementation,
maintenance, or improvement of a conservation practice that qualifies for
a bonus amount under section 1238C(b)(1)(C)(iii), the Secretary may
increase the payment of the producer by such bonus amount as the Secretary
determines is appropriate.
`(d) CONSERVATION CONTRACTS AND PRACTICES-
`(A) ESTABLISHMENT OF TIERS- The Secretary shall establish 3 tiers
of conservation contracts under which a payment under this subchapter may
be received.
`(B) ELIGIBLE CONSERVATION PRACTICES-
`(i) IN GENERAL- The Secretary shall make eligible for payment
under a conservation security contract land management, vegetative, and
structural practices that--
`(I) are necessary to achieve the purposes of the conservation
security plan; and
`(II) primarily provide for, and have as a primary purpose,
resource protection and environmental improvement.
`(I) IN GENERAL- Subject to subclause (II), in determining the
eligibility of a practice described in clause (i), the Secretary shall
require, to the maximum extent practicable, the lowest cost
alternatives be used to fulfill the purposes of the conservation
security plan, as determined by the Secretary.
`(II) INNOVATIVE TECHNOLOGIES- Subclause (I) shall not apply,
to the maximum extent practicable, to the adoption of innovative
technologies.
`(2) ON-FARM RESEARCH AND DEMONSTRATION- With respect to land
enrolled in the conservation security program that will be maintained using
a Tier II conservation practice or a Tier III conservation practice, the
Secretary may approve a conservation security plan that includes on-farm
conservation research and demonstration activities, including--
`(A) total farm planning;
`(B) total resource management;
`(C) integrated farming systems;
`(D) germplasm conservation and regeneration;
`(E) greenhouse gas reduction and carbon
sequestration;
`(F) agroecological restoration and wildlife habitat
restoration;
`(H) invasive species control;
`(I) energy conservation and management;
`(J) farm and environmental results monitoring and evaluation;
or
`(K) participation in research projects relating to water
conservation and management through--
`(i) recycling or reuse of water; or
`(ii) more efficient irrigation of farmland.
`(3) USE OF HANDBOOK AND GUIDES-
`(A) IN GENERAL- In determining eligible conservation practices
under the conservation security program, the Secretary shall use the
National Handbook of Conservation Practices of the Natural Resources
Conservation Service.
`(B) CONSERVATION PRACTICE STANDARDS- To the maximum extent
practicable, the Secretary shall establish guidance standards for
implementation of eligible conservation practices that shall include
measurable goals for enhancing and preventing degradation of
resources.
`(i) IN GENERAL- After providing notice and an opportunity for
public participation, the Secretary shall make such adjustments to the
National Handbook of Conservation Practices, and the field office
technical guides, of the Natural Resources Conservation Service as are
necessary to carry out this chapter.
`(ii) EFFECT ON PLAN- If the Secretary makes an adjustment to a
practice under clause (i), the Secretary may require an adjustment to a
conservation security plan in effect as of the date of the adjustment if
the Secretary determines that the plan, without the adjustment, would
significantly interfere with achieving the purposes of the conservation
security program.
`(i) IN GENERAL- Under any of the 3 tiers of conservation
practices established under paragraph (4), the Secretary may approve
requests by a producer for pilot testing of new technologies and
innovative conservation practices and systems.
`(ii) INCORPORATION INTO STANDARDS-
`(I) IN GENERAL- After evaluation by the Secretary and
provision of notice and an opportunity for public participation, the
Secretary may, as expeditiously as practicable, approve new
technologies and innovative conservation practices and
systems.
`(II) INCORPORATION- If the Secretary approves a new
technology or innovative conservation practice under subclause (I),
the Secretary shall, as expeditiously as practicable, incorporate the
technology or practice into the standards for implementation of
conservation practices established under paragraph
(3).
`(4) TIERS- Subject to paragraph (5), to carry out this subsection,
the Secretary shall establish the following 3 tiers of conservation
contracts:
`(A) TIER I CONSERVATION CONTRACTS-
`(i) IN GENERAL- A conservation security plan for land enrolled
in the conservation security program under a Tier I conservation
security contract shall be maintained using Tier I conservation
practices and shall, at a minimum--
`(I) if applicable to the particular agricultural operation,
address at least 1 resource of concern;
`(II) apply to the total agricultural operation or to a
particular unit of the agricultural operation;
`(aa) management of conservation practices that are being
implemented as of the date on which the conservation security contract is
entered into; and
`(bb) conservation practices that are implemented after the date
on which the conservation security contract is entered into; and
`(IV) meet applicable standards for implementation of
conservation practices established under paragraph
(3).
`(ii) CONSERVATION PRACTICES- Tier I conservation practices
shall consist of, as appropriate for the agricultural operation of a
producer, 1 or more of the following basic conservation
activities:
`(I) Nutrient management.
`(II) Integrated pest management.
`(III) Irrigation, water conservation, and water quality
management.
`(IV) Grazing pasture and rangeland
management.
`(V) Soil conservation, quality, and residue
management.
`(VI) Invasive species management.
`(VII) Fish and wildlife habitat management, with special
emphasis on species identified by any natural heritage program of the
applicable State or the appropriate State agency.
`(VIII) Fish and wildlife conservation and
enhancement.
`(IX) Air quality management.
`(X) Energy conservation measures.
`(XI) Biological resource conservation and
regeneration.
`(XII) Animal health management.
`(XIII) Plant and animal germplasm conservation, evaluation,
and development.
`(XVIII) Any other conservation practice that the Secretary
determines to be appropriate and comparable to other conservation
practices described in this clause.
`(iii) TIER II CONSERVATION CONTRACTS- A conservation security
plan for land enrolled in the conservation security program that will be
maintained using Tier I conservation contracts may include Tier II
conservation practices.
`(B) TIER II CONSERVATION PRACTICES-
`(i) IN GENERAL- A conservation security plan for land enrolled
in the conservation security program under a Tier II conservation
security contract shall be maintained using Tier II conservation
practices and shall, at a minimum--
`(I) as applicable to the particular agricultural operation,
address at least 1 resource of concern for the entire agricultural
operation;
`(aa) management of conservation practices that are being
implemented as of the date on which the conservation security contract is
entered into; and
`(bb) conservation practices that are implemented after the date
on which the conservation security contract is entered into; and
`(III) meet applicable resource management system criteria for
1 or more resources of concern of the agricultural operation, as
specified in the conservation security contract.
`(ii) CONSERVATION PRACTICES AND REQUIREMENTS- Tier II
conservation practices and requirements shall consist of, as appropriate
for the agricultural operation of a producer, any of the Tier I
conservation practices and 1 or more of the following land use
adjustment or protection practices:
`(I) Resource-conserving crop rotations.
`(II) Controlled, rotational grazing.
`(III) Conversion of portions of cropland from a
soil-depleting use to a soil-conserving use, including production of
cover crops.
`(IV) Partial field conservation practices (including
windbreaks, grass waterways, shelter belts, filter strips, riparian
buffers, wetland buffers, contour buffer strips, living snow fences,
crosswind trap strips, field borders, grass terraces, wildlife
corridors, and critical area planting appropriate to the agricultural
operation).
`(V) Fish and wildlife habitat conservation and
restoration.
`(VI) Native grassland and prairie protection and
restoration.
`(VII) Wetland protection and restoration.
`(VIII) Agroforestry practices and systems as described in
subsection (b)(2)(B).
`(IX) Any other conservation practice involving modification
of the use of land that the Secretary determines to be appropriate and
comparable to other conservation practices described in this
clause.
`(C) TIER III CONSERVATION CONTRACTS-
`(i) IN GENERAL- A conservation security plan for land enrolled
in the conservation security program under a Tier III conservation
security contract shall be maintained using Tier III conservation
contracts and shall, at a minimum--
`(I) address all applicable resources of concern in the total
agricultural operation;
`(aa) management of conservation practices that are being
implemented as of the date on which the conservation security contract is
entered into; and
`(bb) conservation practices that are implemented after the date
on which the conservation security contract is entered into; and
`(III) meet applicable resource management system criteria for
1 or more resources of concern of the agricultural operation, as
specified in the conservation security contract.
`(ii) CONSERVATION PRACTICES- Tier III conservation practices
shall consist of, as appropriate for the agricultural operation of a
producer (in addition to appropriate Tier I conservation practices and
Tier II conservation practices), development, implementation, and
maintenance of a conservation security plan that, over the term of the
conservation security contract--
`(I) integrates all necessary conservation practices to foster
environmental enhancement and the long-term sustainability of the
natural resource base of an agricultural operation;
and
`(II) improves profitability and sustainability associated
with the agricultural operation.
`(5) MINIMUM REQUIREMENTS- The minimum requirements for each tier of
conservation practices described in paragraph (4) shall be--
`(A)(i) determined by the State conservationist, in consultation
with the State technical committee established under subtitle G and the
local subcommittee of the State technical committee; and
`(ii) approved by the Secretary; and
`(B) in the case of land under the jurisdiction of an Indian
tribe--
`(i) determined by the Indian tribe, after consultation with the
Secretary; and
`(ii) approved by the Secretary.
`(e) CONSERVATION SECURITY CONTRACTS-
`(A) IN GENERAL- On approval of a conservation security plan of a
producer, the Secretary shall enter into a conservation security contract
with the producer to enroll the land covered by the conservation security
plan in the conservation security program.
`(B) REQUIRED COMPONENTS- A conservation security contract shall
specifically describe the practices that are required under subsection
(c)(1)(B).
`(2) TERM- Subject to paragraphs (3) and (4)--
`(A) a conservation security contract for land enrolled in the
conservation security program of a producer that will be maintained using
1 or more Tier I conservation contracts shall have a term of 5 years;
and
`(B) a conservation security contract for land enrolled in the
conservation security program that will be maintained using a Tier II
conservation contract or Tier III conservation contract shall have a
5-year to 10-year term, as determined by the producer.
`(A) OPTIONAL MODIFICATIONS-
`(i) IN GENERAL- An owner or operator may apply to the Secretary
to modify the conservation security plan to effectuate the purposes of
the conservation security program.
`(ii) APPROVAL BY THE SECRETARY- To be effective, any
modification under clause (i)--
`(I) shall be approved by the Secretary;
and
`(II) shall authorize the Secretary to redetermine, if
necessary, the amount and timing of the payments under the
conservation security contract and subsections (a) and (b) of section
1238C.
`(B) OTHER MODIFICATIONS-
`(i) IN GENERAL- The Secretary may, in writing, require a
producer to modify a conservation security contract before the
expiration of the conservation security contract if--
`(I) the Secretary determines that a change made to the type,
size, management, or other aspect of the agricultural operation of the
producer would, without the modification of the contract,
significantly interfere with achieving the purposes of the
conservation security program; or
`(II) the Secretary makes a change to the National Handbook of
Conservation Practices of the Natural Resource Conservation Service
under subsection (d)(3)(C).
`(ii) PAYMENTS- The Secretary may adjust the amount and timing
of the payment schedule under the conservation security contract to
reflect any modifications made under this subparagraph.
`(iii) DEADLINE- The Secretary may terminate a conservation
security contract if a modification required under this subparagraph is
not submitted to the Secretary in the form of an amended conservation
security contract by the date that is 90 days after the date on which
the Secretary issues a written request for the
modification.
`(iv) TERMINATION- a producer that is required to modify a
conservation security contract under this subparagraph may, in lieu of
modifying the contract--
`(I) terminate the conservation security contract;
and
`(II) retain payments received under the conservation security
contract, if the producer fully complied with the terms and conditions
of the conservation security contract before termination of the
contract.
`(A) IN GENERAL- At the option of a producer, the conservation
security contract of the producer may be renewed, for a term described in
subparagraph (B), if--
`(i) the producer agrees to any modification of the applicable
conservation security contract that the Secretary determines to be
necessary to achieve the purposes of the conservation security
program;
`(ii) the Secretary determines that the producer has complied
with the terms and conditions of the conservation security contract,
including the conservation security plan; and
`(iii) in the case of a Tier I conservation security contract,
the producer agrees to increase the conservation practices on land
enrolled in the conservation security program by--
`(I) adopting new conservation practices;
or
`(II) expanding existing practices to meet applicable resource
management systems criteria.
`(B) TERMS OF RENEWAL- Under subparagraph (A)--
`(i) a conservation security contract for land enrolled in the
conservation security program that will be maintained using Tier I
conservation contracts may be renewed for 5-year terms;
`(ii) in the case of a Tier II conservation security contract or
a Tier III conservation security contract, the contract shall be renewed
for 5-year to 10-year terms, at the option of the producer;
and
`(iii) participation in the conservation security program prior
to the renewal of the conservation security contract shall not bar
renewal more than once.
`(f) NONCOMPLIANCE DUE TO CIRCUMSTANCES BEYOND THE CONTROL OF
PRODUCERS- The Secretary shall include in the conservation security contract a
provision, and may modify a conservation security contract under subsection
(e)(3)(B), to ensure that a producer shall not be considered in violation of a
conservation security contract for failure to comply with the conservation
security contract due to circumstances beyond the control of the producer,
including a disaster or related condition, as determined by the
Secretary.
`SEC. 1238B. DUTIES OF PRODUCERS.
`Under a conservation security contract, a producer shall agree,
during the term of the conservation security contract--
`(1) to implement the applicable conservation security plan approved
by the Secretary;
`(2) to maintain, and make available to the Secretary at such times
as the Secretary may request, appropriate records showing the effective and
timely implementation of the conservation security plan;
`(3) not to engage in any activity that would interfere with the
purposes of the conservation security plan; and
`(4) on the violation of a term or condition of the conservation
security contract--
`(A) if the Secretary determines that the violation warrants
termination of the conservation security contract--
`(i) to forfeit all rights to receive payments under the
conservation security contract; and
`(ii) to refund to the Secretary all or a portion of the
payments received by the producer under the conservation security
contract, including any advance payment and interest on the payments, as
determined by the Secretary; or
`(B) if the Secretary determines that the violation does not
warrant termination of the conservation security contract, to refund to
the Secretary, or accept adjustments to, the payments provided to the
producer, as the Secretary determines to be appropriate.
`SEC. 1238C. DUTIES OF THE SECRETARY.
`(a) ADVANCE PAYMENT- At the time at which a producer enters into a
conservation security contract, the Secretary shall, at the option of the
producer, make an advance payment to the producer in an amount not to
exceed--
`(1) in the case of a Tier I conservation security contract, the
greater of--
`(B) 20 percent of the value of the annual payment under the
contract, as determined by the Secretary;
`(2) in the case of a Tier II conservation security contract, the
greater of--
`(B) 20 percent of the value of the annual payment under the
contract, as determined by the Secretary; and
`(3) in the case of a Tier III conservation security contract, the
greater of--
`(B) 20 percent of the value of the annual payment under the
contract, as determined by the Secretary.
`(1) CRITERIA FOR DETERMINING AMOUNT OF PAYMENTS-
`(A) BASE RATE- In this paragraph, the term `base rate' means the
average county rental rate for the specific land use during the 2001 crop
year, or another appropriate average county rate for the 2001 crop year,
that ensures regional equity, as determined by the
Secretary.
`(B) PAYMENTS- A payment for a conservation practice under this
paragraph shall be determined in accordance with subparagraphs (C) through
(F).
`(C) TIER I CONSERVATION CONTRACTS- The payment for a Tier I
conservation security contract shall be comprised of the total of the
following amounts:
`(i) An amount equal to 6 percent of the base rate for land
covered by the contract.
`(ii) An amount equal to the following costs of practices
covered by the conservation security contract, based on the average
county costs for such practices for the 2001 crop year, as determined by
the Secretary:
`(I) 100 percent of the cost of--
`(aa) the adoption of new management practices; and
`(bb) the maintenance of new and existing land management and
vegetative practices.
`(II) 100 percent of the cost of maintenance of existing
land-based structural practices approved by the
Secretary.
`(III)(aa) 75 percent (or, in the case of a limited resource
producer (as determined by the Secretary) or a beginning farmer or
rancher, 90 percent) of the cost of adoption of new land-based
structural practices; or
`(bb) 75 percent (or, in the case of a limited resource
producer (as determined by the Secretary) or a beginning farmer or
rancher, 90 percent) of the cost of the adoption of a structural
practice for which a similar structural practice under the
environmental quality incentives program established under chapter 4
would require maintenance, if the producer agrees to provide, without
reimbursement, substantially equivalent
maintenance.
`(iii) A bonus amount determined by the Secretary for
implementing or adopting 1 or more of the following
practices:
`(I) A practice adopted or maintained that, because of the
extent and scope of the practice, maximizes the objectives of the
conservation security program beyond the minimum requirements of the
practices adopted or maintained.
`(II) A practice adopted or maintained to address resources of
concern and local conservation concerns beyond those identified as
State or local conservation priorities.
`(III) A practice adopted or maintained to address national
priority concerns, as determined by the Secretary.
`(IV) Participation by the producer in an on-farm conservation
research, demonstration, or pilot project.
`(V) Participation by the producer in a watershed or regional
resource conservation plan that involves at least 75 percent of
producers in a targeted area.
`(VI) Recordkeeping, monitoring, and evaluation carried out by
the producer that furthers the purposes of the conservation security
program.
`(iv) A bonus amount determined by the Secretary that reflects
the status of a producer as a beginning farmer or
rancher.
`(D) TIER II CONSERVATION CONTRACTS- The payment for a Tier II
conservation security contract shall be comprised of the total of the
following amounts:
`(i) An amount equal to 11 percent of the base rate for land
covered by the conservation security contract.
`(ii) An amount equal to the cost of practices covered by the
conservation security contract, based on the average county costs for
practices for the 2001 crop year, described in subparagraph
(C)(ii).
`(iii) A bonus amount determined by the Secretary in accordance
with clauses (iii) and (iv) of subparagraph (C), except that the bonus
amount under this clause may include any amount for the adoption or
maintenance by the producer of any practice that exceeds resource
management system standards.
`(E) TIER III CONSERVATION CONTRACTS- The payment for a Tier III
conservation security contract shall be comprised of the total of the
following amounts:
`(i) An amount equal to 20 percent of the base rate for land
covered by the conservation security contract.
`(ii) An amount equal to the cost of practices covered by the
conservation security contract, based on the average county costs for
practices for the 2001 crop year, described in subparagraph
(C)(ii).
`(iii) A bonus amount determined by the Secretary in accordance
with subparagraph (D)(iii).
`(F) EXCLUSION OF COSTS FOR PURCHASE OR MAINTENANCE OF EQUIPMENT
OR NON-LAND BASED STRUCTURES- A payment under this subchapter shall not
include any amount for the purchase or maintenance of equipment or a
non-land based structure.
`(2) TIME OF PAYMENT- The Secretary shall provide payments under a
conservation security contract as soon as practicable after October 1 of
each fiscal year.
`(3) LIMITATION ON PAYMENTS-
`(A) IN GENERAL- Subject to paragraphs (1), (2), (4), and (5), the
Secretary shall, in amounts and for a term specified in a conservation
security contract and taking into account any advance payments, make an
annual payment, directly or indirectly, to the individual or entity
covered by the conservation security contract in an amount not to
exceed--
`(i) in the case of a Tier I conservation security contract,
$20,000;
`(ii) in the case of a Tier II conservation security contract,
$35,000; or
`(iii) in the case of a Tier III conservation security contract,
$50,000.
`(B) LIMITATION ON NONBONUS PAYMENTS- In applying the payment
limitation under each of clauses (i), (ii), and (iii) of subparagraph (A),
an individual or entity may not receive, directly or indirectly, payments
described in clauses (i) and (ii) of paragraph (1)(C), (1)(D), or (1)(E),
as appropriate, in an amount that exceeds 75 percent of the applicable
payment limitation.
`(C) OTHER USDA PAYMENTS- If a producer has the same practices on
the same land enrolled in the conservation security program and 1 or more
other conservation programs administered by the Secretary, the Secretary
shall include all payments from the conservation security program and the
other conservation programs, other than payments for conservation
easements, in applying the annual payment limitations under this
paragraph.
`(i) IN GENERAL- A payment described in clause (ii) shall not be
considered an annual payment for purposes of the annual payment
limitations under this paragraph.
`(ii) PAYMENT- A payment referred to in clause (i) is a payment
that--
`(I) is for the same practice on the same land enrolled in the
conservation security program; and
`(II) is received from a Federal program that is not
administered by the Secretary, or that is administered by any State,
local, or private agricultural agency or
organization.
`(E) COMMENSURATE SHARE- To be eligible to receive a payment under
this chapter, an individual or entity shall make contributions (including
contributions of land, labor, management, equipment, or capital) to the
operation of the farm that are at least commensurate with the share of the
proceeds of the operation of the individual or entity.
`(4) LAND ENROLLED IN OTHER CONSERVATION PROGRAMS- Notwithstanding
any other provision of law, if a producer has land enrolled in another
conservation program administered by the Secretary and has applied to enroll
the same land in the conservation security program, the producer may elect
to--
`(A) convert the contract under the other conservation program to
a conservation security contract, without penalty, except that this
subparagraph shall not apply to a contract entered into
under--
`(i) the conservation reserve program under subchapter B of
chapter 1; or
`(ii) the wetlands reserve program under subchapter C of chapter
1; or
`(B) have each annual payment to the producer under this
subsection reduced to reflect payment for practices the producer receives
under the other conservation program, except that the annual payment under
this subsection shall not be reduced by the amount of any incentive
received under a program referred to in section 1231(b)(6) for qualified
practices that enhance or extend the conservation benefit achieved under
the other conservation program.
`(5) WASTE STORAGE OR TREATMENT FACILITIES- A payment to a producer
under this subchapter shall not be provided for the purpose of construction
or maintenance of animal waste storage or treatment facilities or associated
waste transport or transfer devices for animal feeding
operations.
`(c) MINIMUM PRACTICE REQUIREMENT- In determining a payment under
subsection (a) or (b) for an owner, operator, or producer that receives a
payment under another program administered by the Secretary that is contingent
on complying with requirements under subtitle B or C of title XII of the Food
Security Act of 1985 (16 U.S.C. 3811 et seq.) relating to the use of highly
erodible land or wetland, a payment under this chapter for 1 or more practices
on land subject to those requirements shall be for practices that exceed
minimum requirements for the owner, operator, or producer under those
subtitles, as determined by the Secretary.
`(1) IN GENERAL- The Secretary shall promulgate regulations
that--
`(A) provide for adequate safeguards to protect the interests of
tenants and sharecroppers, including provision for sharing payments, on a
fair and equitable basis; and
`(B) prescribe such other rules as the Secretary determines to be
necessary to ensure a fair and reasonable application of the limitations
established under subsections (a) and (b).
`(2) PENALTIES FOR SCHEMES OR DEVICES-
`(A) IN GENERAL- If the Secretary determines that an individual or
entity has adopted a scheme or device to evade, or that has the purpose of
evading, the regulations promulgated under paragraph (1), the individual
or entity shall be ineligible to participate in the conservation security
program for--
`(i) the year for which the scheme or device was adopted;
and
`(ii) each of the following 5 years.
`(B) FRAUD- If the Secretary determines that fraud was committed
in connection with the scheme or device, the individual or entity shall be
ineligible to participate in the conservation security program
for--
`(i) the year for which the scheme or device was adopted;
and
`(ii) each of the following 10 years.
`(1) IN GENERAL- Subject to section 1238B, the Secretary shall allow
a producer to terminate the conservation security contract.
`(2) PAYMENTS- the producer may retain any or all payments received
under a terminated conservation security contract if--
`(A) the producer is in full compliance with the terms and
conditions (including any maintenance requirements) of the conservation
security contract as of the date of the termination; and
`(B) the Secretary determines that termination of the contract
will not defeat the purposes of the conservation security plan of the
producer.
`(f) TRANSFER OR CHANGE OF INTEREST IN LAND SUBJECT TO CONSERVATION
SECURITY CONTRACT-
`(1) IN GENERAL- Except as provided in paragraph (2), the transfer,
or change in the interest, of a producer in land subject to a conservation
security contract shall result in the termination of the conservation
security contract.
`(2) TRANSFER OF DUTIES AND RIGHTS- Paragraph (1) shall not apply
if, not later than 60 days after the date of the transfer or change in the
interest in land, the transferee of the land provides written notice to the
Secretary that all duties and rights under the conservation security
contract have been transferred to the transferee.
`(g) TECHNICAL ASSISTANCE-
`(1) IN GENERAL- For each of fiscal years 2003 through 2006, the
Secretary shall provide technical assistance to producers for the
development and implementation of conservation security contracts, in an
amount not to exceed 20 percent of amounts expended for the fiscal
year.
`(2) COORDINATION BY THE SECRETARY- The Secretary shall provide
overall technical coordination and leadership for the conservation security
program, including final approval of all conservation security
plans.
`(h) CONSERVATION SECURITY STATE PROGRAM-
`(1) IN GENERAL- Effective October 1, 2004, the Secretary, in
cooperation with appropriate State agencies, may permit 1 State to jointly
implement a conservation security program with the Secretary.
`(2) ELIGIBLE STATE- The State referred to in paragraph (1) shall be
a State selected by the Secretary--
`(A) in consultation with--
`(i) the Committee on Agriculture of the House of
Representatives; and
`(ii) the Committee on Agriculture, Nutrition, and Forestry of
the Senate; and
`(B) after taking into consideration--
`(i) the percentage of private land in agricultural production
in the State; and
`(ii) infrastructure in the State that is available to implement
the pilot program under paragraph (1).'.
SEC. 202. FUNDING.
Section 1241 of the Food Security Act of 1985 (16 U.S.C. 3841) is
amended by adding at the end the following:
`(c) CONSERVATION SECURITY PROGRAM- Of the funds of the Commodity
Credit Corporation, the Corporation shall make available for each of fiscal
years 2002 through 2006 such sums as are necessary to carry out subchapter A
of chapter 2 (including the provision of technical assistance, education and
outreach, and monitoring and evaluation).'.
SEC. 203. PARTNERSHIPS AND COOPERATION.
Section 1243 of the Food Security Act of 1985 (16 U.S.C. 3843) is
amended by adding at the end the following:
`(f) PARTNERSHIPS AND COOPERATION-
`(1) IN GENERAL- In carrying out any program under subtitle D, the
Secretary may use resources provided under that subtitle to enter into
agreements with State and local agencies, Indian tribes, and nongovernmental
organizations and to designate special projects, as recommended by the State
Conservationist, after consultation with the State technical committee, to
enhance technical and financial assistance provided to owners, operators,
and producers to address environmental issues affected by agricultural
production with respect to--
`(A) meeting the purposes of--
`(i) the Federal Water Pollution Control Act (33 U.S.C. 1251 et
seq.) or comparable State or tribal laws in impaired or threatened
watersheds;
`(ii) the Safe Drinking Water Act (42 U.S.C. 300f et seq.) or
comparable State or tribal laws in watersheds providing water for
drinking water supplies;
`(iii) the Clean Air Act (42 U.S.C. 7401 et seq.) or comparable
State laws; or
`(iv) other Federal, State, tribal, or local laws;
or
`(B) watersheds of special significance, conservation priority
areas described in section 1230(c), or other geographic areas of
environmental sensitivity, such as wetland, including State, multi-State,
or tribal projects--
`(i) to facilitate surface and ground water
conservation;
`(ii) to protect water quality;
`(iii) to protect endangered or threatened species or habitat,
such as conservation corridors;
`(iv) to improve methods of irrigation;
`(v) to convert acreage from irrigated production;
or
`(vi) to reduce nutrient loads of watersheds.'.
`(2) INCENTIVES- To realize the purposes of the special projects
under paragraph (1), the Secretary may provide special incentives to owners,
operators, and producers participating in the special projects to encourage
partnerships, enrollments of exceptional environmental value, and sharing of
technical and financial resources among owners, operators, and producers and
among owners, operators, and producers and governmental and nongovernmental
organizations.
`(A) IN GENERAL- The Secretary may enter into agreements with
States (including State agencies and units of local government), Indian
tribes, and nongovernmental organizations to allow greater flexibility to
adjust the application of eligibility criteria, approved practices,
innovative conservation practices, and other elements of the programs
under this title to better reflect unique local circumstances and purposes
in a manner that is consistent with--
`(i) environmental enhancement and long-term sustainability of
the natural resource base; and
`(ii) the purposes and requirements of this
title.
`(B) PLAN- Each party to an agreement under subparagraph (A) shall
submit to the Secretary, for approval by the Secretary, a special project
area or priority area program plan for each program to be carried out by
the party that includes--
`(i) a description of the requested resources and adjustments to
program implementation (including a description of how those adjustments
will accelerate the achievement of environmental
benefits);
`(ii) an analysis of the contribution those adjustments will
make to the effectiveness of programs in achieving the purposes of the
special project or priority area program;
`(iii) a timetable for reevaluating the need for or performance
of the proposed adjustments;
`(iv) a description of non-Federal programs and resources that
will contribute to achieving the purposes of the special project or
priority area program; and
`(v) a plan for regular monitoring, evaluation, and reporting of
progress toward the purposes of the special project or priority area
program.
`(4) PURPOSES OF SPECIAL PROJECTS- The purposes of special projects
carried out under this section shall be to encourage--
`(A) producers to cooperate in the installation and maintenance of
conservation systems that affect multiple agricultural
operations;
`(B) the sharing of information and technical and financial
resources;
`(C) cumulative environmental benefits across operations of
producers; and
`(D) the development and demonstration of innovative conservation
methods.
`(A) IN GENERAL- In addition to resources from programs under
subtitle D, subject to subparagraph (B), the Secretary shall use 5 percent
of the funds made available for each fiscal year under section 1241(b) to
carry out activities that are authorized under the environmental quality
incentives program established under chapter 4 of subtitle
D.
`(B) UNUSED FUNDING- Any funds made available for a fiscal year
under subparagraph (A) that are not obligated by April 1 of the fiscal
year may be used to carry out other activities under the environmental
quality incentives program during the fiscal year in which the funding
becomes available.'.
SEC. 204. ADMINISTRATIVE REQUIREMENTS FOR CONSERVATION
PROGRAMS.
Subtitle E of title XII of the Food Security Act of 1985 (16 U.S.C.
3841 et seq.) is amended by adding at the end the following:
`SEC. 1244. ADMINISTRATIVE REQUIREMENTS FOR CONSERVATION
PROGRAMS.
`(a) GOOD FAITH RELIANCE-
`(1) IN GENERAL- Notwithstanding any other provision of law, except
as provided in paragraph (4), the Secretary shall provide equitable relief
to an owner, operator, or producer that has entered into a contract under a
conservation program administered by the Secretary, and that is subsequently
determined to be in violation of the contract, if the owner, operator, or
producer, in attempting to comply with the terms of the contract and
enrollment requirements--
`(A) took actions in good faith reliance on the action or advice
of an employee of the Secretary; and
`(B) had no knowledge that the actions taken were in violation of
the contract.
`(2) TYPES OF RELIEF- The Secretary shall--
`(A) to the extent the Secretary determines that an owner,
operator, or producer has been injured by good faith reliance described in
paragraph (1), allow the owner, operator, or producer--
`(i) to retain payments received under the
contract;
`(ii) to continue to receive payments under the
contract;
`(iii) to keep all or part of the land covered by the contract
enrolled in the applicable program;
`(iv) to reenroll all or part of the land covered by the
contract in the applicable program; or
`(v) to receive any other equitable relief the Secretary
considers appropriate; and
`(B) require the owner, operator, or producer to take such actions
as are necessary to remedy any failure to comply with the
contract.
`(3) RELATIONSHIP TO OTHER LAW- The authority to provide relief
under this subsection shall be in addition to any other authority provided
in this or any other Act.
`(4) EXCEPTIONS- This section shall not apply to--
`(A) any pattern of conduct in which an employee of the Secretary
takes actions or provides advice with respect to an owner, operator, or
producer that the employee and the owner, operator, or producer know are
inconsistent with applicable law (including regulations); or
`(B) an owner, operator, or producer takes any action, independent
of any advice or authorization provided by an employee of the Secretary,
that the owner, operator, or producer knows or should have known to be
inconsistent with applicable law (including regulations).
`(5) APPLICABILITY OF RELIEF- Relief under this section shall be
available for contracts in effect on or after the date of enactment of this
section.
`(b) EDUCATION, OUTREACH, MONITORING, AND EVALUATION- In carrying out
any conservation program administered by the Secretary, the
Secretary--
`(1) shall provide education, outreach, training, monitoring,
evaluation, technical assistance, and related services to agricultural
producers (socially disadvantaged agricultural producers, beginning farmers
and ranchers, Indian tribes (as those terms are defined in section 1238),
and limited resource agricultural producers);
`(2) may enter into contracts with States (including State agencies
and units of local government), private nonprofit, community-based
organizations, and educational institutions with demonstrated experience in
providing the services described in paragraph (1), to provide those
services; and
`(3) shall use such sums as are necessary from funds of the
Commodity Credit Corporation to carry out activities described in paragraphs
(1) and (2).
`(c) BEGINNING FARMERS AND RANCHERS AND INDIAN TRIBES- In carrying out
any conservation program administered by the Secretary, the Secretary may
provide to beginning farmers and ranchers and Indian tribes (as those terms
are defined in section 1238) and limited resource agricultural producers
incentives to participate in the conservation program to--
`(1) foster new farming opportunities; and
`(2) enhance environmental stewardship over the long
term.
`(d) PROGRAM EVALUATION- The Secretary shall maintain data concerning
conservation security plans, conservation practices planned or implemented,
environmental outcomes, economic costs, and related matters under conservation
programs administered by the Secretary.
`(e) MEDIATION AND INFORMAL HEARINGS- If the Secretary makes a
decision under a conservation program administered by the Secretary that is
adverse to an owner, operator, or producer, at the request of the owner,
operator, or producer, the Secretary shall provide the owner, operator, or
producer with mediation services or an informal hearing on the
decision.
`(f) TECHNICAL ASSISTANCE-
`(1) IN GENERAL- Under any conservation program administered by the
Secretary, subject to paragraph (2), technical assistance provided by
persons certified under paragraph (3) (including farmers and ranchers) may
include--
`(A) conservation planning;
`(B) design, installation, and certification of conservation
practices;
`(C) conservation training for producers; and
`(D) such other conservation activities as the Secretary
determines to be appropriate.
`(A) IN GENERAL- The Secretary may contract directly with
qualified persons not employed by the Department to provide conservation
technical assistance.
`(B) PAYMENT BY SECRETARY- Subject to subparagraph (C), the
Secretary may provide a payment to an owner, operator, or producer
enrolled in a conservation program administered by the Secretary if the
owner, operator, or producer elects to obtain technical assistance from a
person certified to provide technical assistance under this
subsection.
`(C) NONPRIVATE PROVIDERS- In determining whether to provide a
payment under subparagraph (B) to a nonprivate provider, the Secretary
shall provide a payment if the provision of the payment would result in an
increase in the total amount of technical assistance available to
producers, as determined by the Secretary.
`(3) CERTIFICATION OF PROVIDERS OF TECHNICAL ASSISTANCE-
`(i) IN GENERAL- The Secretary shall establish procedures for
certifying persons not employed by the Department to provide technical
assistance in planning, designing, or certifying activities to
participate in any conservation program administered by the Secretary to
agricultural producers and landowners participating, or seeking to
participate, in conservation programs administered by the
Secretary.
`(ii) NON-FEDERAL ASSISTANCE- The Secretary may request the
services of, and enter into a cooperative agreement with, a State water
quality agency, State fish and wildlife agency, State forestry agency,
State conservation agency or conservation district, or any other
governmental or nongovernmental organization or person considered
appropriate by the Secretary to assist in providing the technical
assistance necessary to develop and implement conservation plans under
this title.
`(B) EQUIVALENCE- The Secretary shall ensure that new
certification programs of the Department for providers of technical
assistance meet or exceed the testing and continuing education standards
of any certification program that establishes nationally recognized and
accepted standards for training, testing, and other professional
qualifications.
`(C) STANDARDS- The Secretary shall establish standards for the
conduct of--
`(i) the certification process conducted by the Secretary;
and
`(ii) periodic recertification by the Secretary of
providers.
`(D) CERTIFICATION REQUIRED-
`(i) IN GENERAL- A provider may not provide to any producer
technical assistance described in paragraph (3)(A)(i) unless the
provider is certified by the Secretary.
`(ii) WAIVER- The Secretary may exempt a provider from any
requirement of this subparagraph if the Secretary determines that the
provider has been certified or recertified to provide technical
assistance through a program the standards of which meet or exceed
standards established by the Secretary under subparagraph
(C).
`(i) IN GENERAL- In exchange for certification or
recertification, a provider shall pay a fee to the Secretary in an
amount determined by the Secretary.
`(ii) ACCOUNT- A fee paid to the Secretary under clause (i)
shall be--
`(I) credited to the account in the Treasury that incurs costs
relating to implementing this subsection; and
`(II) made available to the Secretary for use for conservation
programs administered by the Secretary, without further appropriation,
until expended.
`(iii) WAIVER- The Secretary may waive any requirement of any
provider to pay a fee under this subparagraph if the provider qualifies
for a waiver under subparagraph (D)(ii).
`(F) TECHNICAL ASSISTANCE ADVISORY COUNCIL-
`(i) PURPOSE- The Secretary shall establish a technical
assistance advisory council (referred to in this subparagraph as the
`advisory council') to advise the Secretary with respect to the
management of certification programs for the provision of technical
assistance for third party providers.
`(ii) MEMBERSHIP- The membership of the advisory council shall
include--
`(I) representatives of the Federal Government and appropriate
State and local governments; and
`(II) not more than 20 additional members that represent 2 or
more of the following:
`(aa) Agricultural producers.
`(bb) Agricultural industries.
`(cc) Wildlife and environmental entities.
`(dd) A minimum of 6 professional societies and
organizations.
`(ee) Such other entities (the representation of which on the
advisory council shall not exceed 4 members) as the Secretary determines would
contribute to the work of the advisory council.
`(iii) RESPONSIBILITIES- The advisory council shall advise the
Secretary with respect to--
`(I) appropriate standards for
certification;
`(II) the status of third party certification
programs;
`(III) cases in which waivers for certification,
recertification and payment of fees should be
allowed;
`(IV) periodic reviews of certification program;
and
`(V) guidelines for penalties and disciplinary actions for
violation of certification requirements.
`(I) INITIAL MEETING- Not later than 30 days after the date on
which all members of the advisory council have been appointed, the
advisory council shall hold the initial meeting of advisory
council.
`(II) SUBSEQUENT MEETINGS- The Secretary shall require the
advisory council to meet as needed.
`(v) AUTHORIZATION OF APPROPRIATIONS- There are authorized to be
appropriated to carry out this subparagraph such sums as are necessary
for each of fiscal years 2002 through 2006.
`(4) EFFECT ON IMPLEMENTATION- Nothing in this subsection shall
prohibit or impede the expeditious implementation of the provision of
third-party technical assistance under this title.
`(5) OTHER REQUIREMENTS- The Secretary may establish such other
requirements as the Secretary determines are necessary to carry out this
subsection.
`(g) PRIVACY OF PERSONAL INFORMATION RELATING TO NATURAL RESOURCES
CONSERVATION PROGRAMS-
`(1) INFORMATION RECEIVED FOR TECHNICAL AND FINANCIAL ASSISTANCE-
`(A) IN GENERAL- In accordance with section 552(b)(3) of title 5,
United States Code, except as provided in subparagraph (C) and paragraph
(3), information described in subparagraph (B)--
`(i) shall not be considered to be public information;
and
`(ii) shall not be released to any person or Federal, State,
local agency or Indian tribe (as defined in section 1238) outside the
Department of Agriculture.
`(B) INFORMATION- The information referred to in subparagraph (A)
is information--
`(i) provided to the Secretary or a contractor of the Secretary
(including information provided under subtitle D) for the purpose of
providing technical or financial assistance to an owner, operator, or
producer with respect to any natural resources conservation program
administered by the Natural Resources Conservation Service or the Farm
Service Agency; and
`(ii) that is proprietary (within the meaning of section
552(b)(4) of title 5, United States Code) to the agricultural operation
or land that is a part of an agricultural operation of the owner,
operator, or producer.
`(C) EXCEPTION- Information regarding owners, operators, or
producers that have received payments from the Secretary and the amounts
received, shall be--
`(i) considered to be public information; and
`(ii) may be released to any--
`(II) Indian tribe (as defined in section 1238);
or
`(III) Federal, State, local agency outside the Department of
Agriculture.
`(2) INVENTORY, MONITORING, AND SITE SPECIFIC INFORMATION- Except as
provided in paragraph (3) and notwithstanding any other provision of law, in
order to maintain the personal privacy, confidentiality, and cooperation of
owners, operators, and producers, and to maintain the integrity of each unit
at which primary sampling for data gathering is carried out by the National
Resources Inventory (referred to in this subsection as a `data gathering
site'), the specific geographic locations of data gathering sites, and the
information generated by the data gathering sites--
`(A) shall not be considered to be public information;
and
`(B) shall not be released to any person or Federal, State, local,
or tribal agency outside the Department.
`(A) RELEASE AND DISCLOSURE FOR ENFORCEMENT- The Secretary may
release or disclose to the Attorney General information covered by
paragraph (1) or (2) to the extent necessary to enforce the natural
resources conservation programs referred to in paragraph
(1)(B)(i).
`(B) DISCLOSURE TO COOPERATING PERSONS AND AGENCIES-
`(i) IN GENERAL- The Secretary may release or disclose
information covered by paragraph (1) or (2) to a person or Federal,
State, local, or tribal agency working in cooperation with the Secretary
in providing technical and financial assistance described in paragraph
(1)(B)(i) or collecting information from data gathering
sites.
`(ii) USE OF INFORMATION- The person or Federal, State, local,
or tribal agency that receives information described in clause (i) may
release the information only for the purpose of assisting the
Secretary--
`(I) in providing the requested technical or financial
assistance; or
`(II) in collecting information from data gathering
sites.
`(C) STATISTICAL AND AGGREGATE INFORMATION- Information covered by
paragraph (1) or (2) may be disclosed to the public if the information has
been transformed into a statistical or aggregate form without naming
any--
`(i) individual owner, operator, or producer;
or
`(ii) specific data gathering site.
`(D) CONSENT OF OWNER, OPERATOR, OR PRODUCER-
`(i) IN GENERAL- An owner, operator, or producer may consent to
the disclosure of information described in paragraph (1) or
(2).
`(ii) CONDITION OF OTHER PROGRAMS- The participation of the
owner, operator, or producer in, and the receipt of any benefit by the
owner, operator, or producer under, this title or any other program
administered by the Secretary may not be conditioned on the owner,
operator, or producer providing consent under this
paragraph.
`(4) VIOLATIONS; PENALTIES- Section 1770(c) shall apply with respect
to the release of information collected in any manner or for any purpose
prohibited by this subsection.
`(5) DATA COLLECTION, DISCLOSURE, AND REVIEW- Nothing in this
subsection--
`(A) affects any procedure for data collection or disclosure
through the National Resources Inventory; or
`(B) limits the authority of Congress or the General Accounting
Office to review information collected or disclosed under this
subsection.
`(h) INDIAN TRIBES- In carrying out any conservation program
administered by the Secretary on land under the jurisdiction of an Indian
tribe (as defined in section 1238), the Secretary shall cooperate with the
tribal government of the Indian tribe to ensure, to the maximum extent
practicable, that the program is administered in a fair and equitable
manner.'.
SEC. 205. REFORM AND ASSESSMENT OF CONSERVATION PROGRAMS.
(a) IN GENERAL- The Secretary of Agriculture shall develop a plan
for--
(1) coordinating conservation programs administered by the Secretary
that are targeted at agricultural land to--
(A) eliminate redundancy; and
(2) to the maximum extent practicable--
(A) designing forms that are applicable to all conservation
programs administered by the Secretary;
(B) reducing and consolidating paperwork requirements for the
programs;
(C) developing universal classification systems for all
information obtained on the forms that can be used by other agencies of
the Department of Agriculture;
(D) ensuring that the information and classification systems
developed under this paragraph can be shared with other agencies of the
Department through computer technologies used by agencies;
and
(E) developing 1 format for a conservation plan that can be
applied to all conservation programs targeted at agricultural
land;
(3) to the maximum extent practicable, improving the delivery of
conservation programs to Indian tribes (as defined in section 4 of the
Indian Self-Determination and Education Assistance Act (25 U.S.C. 450b)),
including programs for the delivery of conservation programs to Indian
tribes under plans carried out in conjunction with the Secretary of the
Interior; and
(4) improving the regional distribution of program funds and
resources to ensure, to the maximum extent practicable, that--
(A) the highest conservation priorities of the United States
receive funding; and
(B) regional variations in conservation costs are taken into
account.
(b) REPORT- Not later than 180 days after the date of enactment of
this Act, the Secretary of Agriculture shall submit to the Committee on
Agriculture of the House of Representatives and the Committee on Agriculture,
Nutrition, and Forestry of the Senate a report that describes the plan
developed under subsection (a), including any recommendations for
implementation of the plan.
(c) NATIONAL CONSERVATION PLAN-
(1) IN GENERAL- Not later than 180 days after the date of enactment
of this Act, the Secretary of Agriculture shall submit to the Committee on
Agriculture of the House of Representatives and the Committee on
Agriculture, Nutrition, and Forestry of the Senate a plan and estimated
budget for implementing the appraisal of the soil, water, and related
resources of the United States contained in the national conservation
program under sections 5 and 6 of the Soil and Water Resources Conservation
Act of 1977 (16 U.S.C. 2004, 2005) as the primary vehicle for managing
conservation on agricultural land in the United States.
(2) REPORT ON IMPLEMENTATION- Not later than April 30, 2005, the
Secretary shall submit to the Committee on Agriculture of the House of
Representatives and Committee on Agriculture, Nutrition, and Forestry of the
Senate a report that--
(A) describes the status of the implementation of the plan
described in paragraph (1);
(B) contains an evaluation of the scope, quality, and outcomes of
the conservation practices carried out under the plan; and
(C) makes recommendations for achieving specific and quantifiable
improvements for the purposes of programs covered by the
plan.
(d) CONSERVATION PRACTICE STANDARDS- The Secretary of Agriculture
shall--
(1) revise standards and, if necessary, establish standards, for
eligible conservation practices to include measurable goals for enhancing
natural resources, including innovative practices;
(2) not later than 180 days after the date of enactment of this Act,
revise the National Handbook of Conservation Practices and field office
technical guides of the Natural Resources Conservation Service;
and
(3) not less frequently than once every 5 years, update the Handbook
and technical guides.
SEC. 206. CONSERVATION SECURITY PROGRAM REGULATIONS.
Beginning on the date of enactment of this Act, the Secretary of
Agriculture may promulgate regulations and carry out other actions relating to
the implementation of the conservation security program under subchapter A of
chapter 2 of subtitle D of title XII of the Food Security Act of 1985 (as
added by section 201).
SEC. 207. CONFORMING AMENDMENTS.
(a) Chapter 1 of subtitle D of title XII of the Food Security Act of
1985 (16 U.S.C. 3830 et seq.) is amended in the chapter heading by striking
`ENVIRONMENTAL CONSERVATION ACREAGE RESERVE PROGRAM' and inserting
`COMPREHENSIVE CONSERVATION ENHANCEMENT PROGRAM'.
(b) Section 1230 of the Food Security Act of 1985 (16 U.S.C. 3830) is
amended--
(1) in the section heading, by striking `environmental conservation
acreage reserve program' and inserting `comprehensive conservation
enhancement program';
(2) in subsection (a)(1), by striking `an environmental conservation
acreage reserve program' and inserting `a comprehensive conservation
enhancement program'; and
(3) by striking `ECARP' each place it appears and inserting
`CCEP'.
(c) Section 1230A of the Food Security Act of 1985 (16 U.S.C. 3830a)
is repealed.
(d) Section 1243 of the Food Security Act of 1985 (16 U.S.C. 3843) is
amended by striking the section heading and inserting the following:
`SEC. 1243. ADMINISTRATION OF CCEP.'.
Subtitle B--Program Extensions
SEC. 211. COMPREHENSIVE CONSERVATION ENHANCEMENT PROGRAM.
(a) IN GENERAL- Section 1230(a) of the Food Security Act of 1985 (16
U.S.C. 3830(a)) is amended--
(1) in paragraph (1), by striking `2002' and inserting `2006';
and
(A) in subparagraph (B), by striking `and' at the end;
and
(B) by striking subparagraph (C) and inserting the
following:
`(C) the grassland reserve program established under subchapter C
of chapter 2;
`(D) the environmental quality incentives program established
under chapter 4;
`(E) the wildlife habitat incentive program established under
section 1240M; and
`(F) the program for conservation of private grazing land
established under section 1240P.'.
(b) PRIORITY- Section 1230(c) of the Food Security Act of 1985 (16
U.S.C. 3830(c)) is amended by adding at the end the following:
`(4) PRIORITY- In designating conservation priority areas under
paragraph (1), the Secretary shall give priority to areas in which
designated land would facilitate the most rapid completion of projects
that--
`(A) are ongoing as of the date of the application;
and
`(B) meet the purposes of a program established under this
title.'.
(c) FUNDING- Section 1241(a) of the Food Security Act of 1985 (16
U.S.C. 3841(a)) is amended--
(1) by striking `2002' and inserting `2006';
(2) by inserting `(including the provision of technical assistance)'
after `the programs';
(A) by striking `subchapter C' and inserting `subchapters C and
D'; and
(B) by striking `and' at the end;
(4) in paragraph (3), by striking the period at the end and
inserting `; and'; and
(5) by adding at the end the following:
`(4) chapter 6 of subtitle D.'.
SEC. 212. CONSERVATION RESERVE PROGRAM.
(1) IN GENERAL- Section 1231 of the Food Security Act of 1985 (16
U.S.C. 3831) is amended in subsections (a), (b)(3), and (d), by striking
`2002' each place it appears and inserting `2006'.
(2) DUTIES OF OWNERS AND OPERATORS- Section 1232(c) of the Food
Security Act of 1985 (16 U.S.C. 3832(c)) is amended by striking `2002' and
inserting `2006'.
(b) CONSERVATION PRIORITY AREAS-
(1) ELIGIBILITY- Section 1231(b) of the Food Security Act of 1985
(16 U.S.C. 3831(b)) is amended--
(A) by striking paragraph (1) and inserting the
following:
`(1) highly erodible cropland that--
`(A)(i) if permitted to remain untreated could substantially
reduce the production capability for future generations; or
`(ii) cannot be farmed in accordance with a conservation plan that
complies with the requirements of subtitle B; and
`(B) the Secretary determines had a cropping history or was
considered to be planted for 3 of the 6 years preceding the date of
enactment of the Agriculture, Conservation, and Rural Enhancement Act of
2002 (except for land enrolled in the conservation reserve program as of
that date);'; and
(B) by adding at the end the following:
`(5) the portion of land in a field not enrolled in the conservation
reserve in a case in which more than 50 percent of the land in the field is
enrolled as a buffer under a program described in paragraph (6)(A), if the
land is enrolled as part of the buffer; and
`(6) land (including land that is not cropland) enrolled through
continuous signup--
`(A) to establish conservation buffers as part of the program
described in a notice issued on March 24, 1998 (63 Fed. Reg. 14109) or a
successor program; or
`(B) into the conservation reserve enhancement program described
in a notice issued on May 27, 1998 (63 Fed. Reg. 28965) or a successor
program.'.
(2) CRP PRIORITY AREAS- Section 1231(f) of the Food Security Act of
1985 (16 U.S.C. 3831(f)) is amended by adding at the end the
following:
`(5) PRIORITY- In designating conservation priority areas under
paragraph (1), the Secretary shall give priority to areas in which
designated land would facilitate the most rapid completion of projects
that--
`(A) are ongoing as of the date of the application;
and
`(B) meet the purposes of the program established under this
subchapter.'.
(c) MAXIMUM ENROLLMENT- Section 1231(d) of the Food Security Act of
1985 (16 U.S.C. 3831(d)) is amended by striking `36,400,000' and inserting
`41,100,000'.
(d) DURATION OF CONTRACTS; HARDWOOD TREES- Section 1231(e) of the Food
Security Act of 1985 (16 U.S.C. 3831(e)) is amended--
(1) in paragraph (1), by striking `For the purpose: and inserting
`Except as provided in paragraph (2)(D), for the purpose';
(A) by striking `In the' and inserting the
following:
`(A) IN GENERAL- In the';
(B) by striking `The Secretary' and inserting the
following:
`(B) EXISTING HARDWOOD TREE CONTRACTS- The Secretary';
and
(C) by adding at the end the following:
`(C) EXTENSION OF HARDWOOD TREE CONTRACTS-
`(i) IN GENERAL- In the case of land devoted to hardwood trees
under a contract entered into under this subchapter before the date of
enactment of this subparagraph, the Secretary may extend the contract
for a term of not more than 15 years.
`(ii) RENTAL PAYMENTS- The amount of a rental payment for a
contract extended under clause (i)--
`(I) shall be determined by the Secretary;
but
`(II) shall not exceed 50 percent of the rental payment that
was applicable to the contract before the contract was
extended.
`(D) NEW HARDWOOD TREE CONTRACTS-
`(i) IN GENERAL- The Secretary may enter into contracts of not
less than 10, nor more than 30, years with owners of land intended to be
devoted to hardwood trees after the date of enactment of this
paragraph.
`(ii) PAYMENTS- The Secretary shall make payments under a
contract described in clause (i)--
`(I) on an annual basis; and
`(II) at such an appropriate rate and in such appropriate
amounts as the Secretary shall determine in accordance with
subparagraph (C)(ii).
`(E) HARDWOOD PLANNING GOAL- The Secretary shall take such steps
as the Secretary determines are necessary to ensure, to the maximum extent
practicable, that all hardwood tree sites annually enrolled in the
conservation reserve program are reforested with appropriate species.';
and
(3) by adding at the end the following:
`(3) 1-YEAR EXTENSION- In the case of a contract described in
paragraph (1) the term of which expires during calendar year 2002, an owner
or operator of land enrolled under the contract may extend the contract for
1 additional year.'.
(e) PILOT PROGRAM FOR ENROLLMENT OF WETLAND AND BUFFER ACREAGE IN
CONSERVATION RESERVE- Section 1231(h) of the Food Security Act of 1985 (16
U.S.C. 3831(h)) is amended--
(1) in the subsection heading, by striking `PILOT';
(2) in paragraph (1), by striking `During the 2001 and 2002 calendar
years, the Secretary shall carry out a pilot program' and inserting `During
the 2002 through 2006 calendar years, the Secretary shall carry out a
program';
(3) in paragraph (2), by striking `pilot'; and
(4) in paragraph (3)(D)(i), by striking `5 contiguous acres.' and
inserting `10 contiguous acres, of which--
`(I) not more than 5 acres shall be eligible for payment;
and
`(II) all acres (including acres that are ineligible for
payment) shall be covered by the conservation
contract.'.
(f) IRRIGATED LAND- Section 1231 of the Food Security Act of 1985 (16
U.S.C. 3831) is amended by adding at the end the following:
`(i) IRRIGATED LAND- Irrigated land shall be enrolled in the programs
described in subsection (b)(6) at irrigated land rates unless the Secretary
determines that other compensation is appropriate.'.
(g) VEGETATIVE COVER; HAYING AND GRAZING; WIND TURBINES- Section
1232(a) of the Food Security Act of 1985 (16 U.S.C. 3832(a)) is
amended--
(A) in subparagraph (A), by striking `and' at the
end;
(B) in subparagraph (B), by inserting `and' after the semicolon at
the end; and
(C) by adding at the end the following:
`(C) in the case of marginal pasture land, an owner or operator
shall not be required to plant trees if the land is to be
restored--
`(ii) with appropriate native riparian
vegetation;';
(A) by striking `except that the Secretary--' and inserting
`except that--';
(B) in subparagraph (A)--
(i) by striking `(A) may' and inserting `(A) the Secretary may';
and
(ii) by striking `and' at the end;
(C) in subparagraph (B)--
(i) by striking `(B) shall' and inserting `(B) the Secretary
shall'; and
(ii) by striking the period at the end and inserting a
semicolon;
(D) in subparagraph (C), by striking the period at the end and
inserting `; and'; and
(E) by adding at the end the following:
`(D) for maintenance purposes, the Secretary may permit harvesting
or grazing or other commercial uses of forage, in a manner that is
consistent with the purposes of this subchapter and a conservation plan
approved by the Secretary, on acres enrolled--
`(i) to establish conservation buffers as part of the program
described in a notice issued on March 24, 1998 (63 Fed. Reg. 14109) or a
successor program; and
`(ii) into the conservation reserve enhancement program
described in a notice issued on May 27, 1998 (63 Fed. Reg. 28965) or a
successor program.';
(3) in paragraph (9), by striking `and' at the end;
(4) by redesignating paragraph (10) as paragraph (11);
and
(5) by inserting after paragraph (9) the following:
`(10) with respect to any contract entered into after the date of
enactment of the Agriculture, Conservation, and Rural Enhancement Act of
2002--
`(A) not to produce a crop for the duration of the contract on any
other highly erodible land that the owner or operator owns unless the
highly erodible land--
`(i) has a history of being used to produce a crop other than a
forage crop, as determined by the Secretary; or
`(ii) is being used as a homestead or building site at the time
of purchase; and
`(B) on a violation of a contract described in subparagraph (A),
to be subject to the requirements of paragraph (5); and'.
(h) WIND TURBINES- Section 1232 of the Food Security Act of 1985 (8906
U.S.C. 3832) is amended by adding at the end the following:
`(1) IN GENERAL- Subject to paragraph (2), the Secretary may permit
an owner or operator of land that is enrolled in the conservation reserve
program, but that is not enrolled under continuous signup (as described in
section 1231(b)(6)), to install wind turbines on the land.
`(2) NUMBER; LOCATION- The Secretary shall determine the number and
location of wind turbines that may be installed on a tract of land under
paragraph (1), taking into account--
`(A) the location, size, and other physical characteristics of the
land;
`(B) the extent to which the land contains wildlife and wildlife
habitat; and
`(C) the purposes of the conservation reserve
program.
`(3) PAYMENT LIMITATION- Notwithstanding the amount of a rental
payment limited by section 1234(c)(2) and specified in a contract entered
into under this chapter, the Secretary shall reduce the amount of the rental
payment paid to an owner or operator of land on which 1 or more wind
turbines are installed under this subsection by an amount determined by the
Secretary to be commensurate with the value of the reduction of benefit
gained by enrollment of the land in the conservation reserve
program.'.
(i) ADDITIONAL ELIGIBLE PRACTICES- Section 1234 of the Food Security
Act of 1985 (16 U.S.C. 3834) is amended by adding at the end the
following:
`(1) IN GENERAL- Subject to paragraph (2), the Secretary shall
provide signing and practice incentive payments under the conservation
reserve program to owners and operators that implement a practice
under--
`(A) the program to establish conservation buffers described in a
notice issued on March 24, 1998 (63 Fed. Reg. 14109) or a successor
program; or
`(B) the conservation reserve enhancement program described in a
notice issued on May 27, 1998 (63 Fed. Reg. 28965) or a successor
program.
`(2) OTHER PRACTICES- The Secretary shall administer paragraph (1)
in a manner that does not reduce the amount of payments made by the
Secretary for other practices under the conservation reserve
program.'.
(j) PAYMENTS- Section 1239C(f) of the Food Security Act of 1985 (16
U.S.C. 3839c(f)) is amended by adding at the end the following:
`(5) EXCEPTION- Paragraph (1) shall not apply to any land enrolled
in--
`(A) the program to establish conservation buffers described in a
notice issued on March 24, 1998 (63 Fed. Reg. 14109) or a successor
program; or
`(B) the conservation reserve enhancement program described in a
notice issued on May 27, 1998 (63 Fed. Reg. 28965) or a successor
program.'.
(k) COUNTY PARTICIPATION- Section 1243(b)(1) of the Food Security Act
of 1985 (16 U.S.C. 3843(b)(1)) is amended by striking `The Secretary' and
inserting `Except for land enrolled under continuous signup (as described in
section 1231(b)(6)), the Secretary'.
(l) STUDY ON ECONOMIC EFFECTS-
(1) IN GENERAL- Not later than 270 days after the date of enactment
of this Act, the Secretary of Agriculture shall submit to the Committee on
Agriculture of the House of Representatives and the Committee on
Agriculture, Nutrition, and Forestry of the Senate a report that describes
the economic and social effects on rural communities resulting from the
conservation reserve program established under subchapter B of chapter 1 of
subtitle D of title XII of the Food Security Act of 1985 (16 U.S.C. 3831 et
seq.).
(2) COMPONENTS- The study under paragraph (1) shall include analyses
of--
(A) the impact that enrollments in the conservation reserve
program described in that paragraph have on rural businesses, civic
organizations, and community services (such as schools, public safety, and
infrastructure), particularly in communities with a large percentage of
whole farm enrollments;
(B) the effect that those enrollments have on rural population and
beginning farmers (including a description of any connection between the
rate of enrollment and the incidence of absentee ownership);
and
(C)(i) the manner in which differential per acre payment rates
potentially impact the types of land (by productivity)
enrolled;
(ii) changes to the per acre payment rates that may affect that
impact; and
(iii) the manner in which differential per acre payment rates
could facilitate retention of productive agricultural land in
agriculture.
SEC. 213. ENVIRONMENTAL QUALITY INCENTIVES PROGRAM.
(a) IN GENERAL- Chapter 4 of subtitle D of title XII of the Food
Security Act of 1985 (16 U.S.C. 3839aa et seq.) is amended to read as
follows:
`SEC. 1240. PURPOSES.
`The purposes of the environmental quality incentives program
established by this chapter are to promote agricultural production and
environmental quality as compatible national goals, and to maximize
environmental benefits per dollar expended, by--
`(1) assisting producers in complying with--
`(B) the Federal Water Pollution Control Act (33 U.S.C. 1251 et
seq.);
`(C) the Safe Drinking Water Act (42 U.S.C. 300f et
seq.);
`(D) the Clean Air Act (42 U.S.C. 7401 et seq.); and
`(E) other Federal, State, tribal, and local environmental laws
(including regulations);
`(2) avoiding, to the maximum extent practicable, the need for
resource and regulatory programs by assisting producers in protecting soil,
water, air, and related natural resources and meeting environmental quality
criteria established by Federal, State, tribal, and local
agencies;
`(3) providing flexible technical and financial assistance to
producers to install and maintain conservation systems that enhance soil,
water, related natural resources (including grazing land and wetland), and
wildlife while sustaining production of food and fiber;
`(4) assisting producers to make beneficial, cost effective changes
to cropping systems, grazing management, nutrient management associated with
livestock, pest or irrigation management, or other practices on agricultural
land;
`(5) facilitating partnerships and joint efforts among producers and
governmental and nongovernmental organizations; and
`(6) consolidating and streamlining conservation planning and
regulatory compliance processes to reduce administrative burdens on
producers and the cost of achieving environmental goals.
`SEC. 1240A. DEFINITIONS.
`(1) BEGINNING FARMER OR RANCHER- The term `beginning farmer or
rancher' has the meaning provided under section 343(a) of the Consolidated
Farm and Rural Development Act (7 U.S.C. 1999(a)).
`(2) COMPREHENSIVE NUTRIENT MANAGEMENT-
`(A) IN GENERAL- The term `comprehensive nutrient management'
means any combination of structural practices, land management practices,
and management activities associated with crop or livestock production
described in subparagraph (B) that collectively ensure that the purposes
of crop or livestock production and preservation of natural resources
(especially the preservation and enhancement of water quality) are
compatible.
`(B) ELEMENTS- For the purpose of subparagraph (A), structural
practices, land management practices, and management activities associated
with livestock production are--
`(i) manure and wastewater handling and
storage;
`(ii) manure processing, composting, or digestion for purposes
of capturing emissions, concentrating nutrients for transport,
destroying pathogens or otherwise improving the environmental safety and
beneficial uses of manure;
`(iii) land treatment practices;
`(iv) nutrient management;
`(vi) feed management; and
`(vii) other waste utilization options.
`(i) PLANNING- The development of a comprehensive nutrient
management plan shall be a practice that is eligible for incentive
payments and technical assistance under this chapter.
`(ii) IMPLEMENTATION- The implementation of a comprehensive
nutrient plan shall be accomplished through structural and land
management practices identified in the plan.
`(iii) REQUIREMENT- A comprehensive nutrient management plan
shall meet all Federal, State, and local water quality and public health
goals and regulations, and in the case of a large confined livestock
operation (as defined by the Secretary), shall include all necessary and
essential land treatment practices as determined by the
Secretary.
`(3) ELIGIBLE LAND- The term `eligible land' means agriculture land
(including cropland, grassland, rangeland, pasture, private nonindustrial
forest land and other land on which crops or livestock are produced),
including agricultural land that the Secretary determines poses a serious
threat to soil, water, or related resources by reason of the soil types,
terrain, climatic, soil, topographic, flood, or saline characteristics, or
other factors or natural hazards.
`(4) INNOVATIVE TECHNOLOGY- The term `innovative technology' means a
new conservation technology that, as determined by the
Secretary--
`(A) maximizes environmental benefits;
`(B) complements agricultural production; and
`(C) may be adopted in a practical manner.
`(5) LAND MANAGEMENT PRACTICES- The term `land management practice'
means a site-specific nutrient or manure management, integrated pest
management, irrigation management, tillage or residue management, grazing
management, air quality management, or other land management practice
carried out on eligible land that the Secretary determines is needed to
protect from degradation, in the most cost-effective manner, water, soil, or
related resource.
`(6) LIVESTOCK- The term `livestock' means dairy cattle, beef
cattle, laying hens, broilers, turkeys, swine, sheep, and other such animals
as are determined by the Secretary.
`(7) MANAGED GRAZING- The term `managed grazing' means the
application of 1 or more practices that involve the frequent rotation of
animals on grazing land to--
`(A) enhance plant health;
`(C) protect ground and surface water quality; or
`(8) MAXIMIZE ENVIRONMENTAL BENEFITS PER DOLLAR EXPENDED-
`(A) IN GENERAL- The term `maximize environmental benefits per
dollar expended' means to maximize environmental benefits to the extent
the Secretary determines is practicable and appropriate, taking into
account the amount of funding made available to carry out this
chapter.
`(B) LIMATATION- The term `maximize environmental benefits per
dollar expended' does not require the Secretary--
`(i) to require the adoption of the least cost practice or
technical assistance; or
`(ii) to require the development of a plan under section 1240E
as part of an application for payments or technical
assistance.
`(9) PRACTICE- The term `practice' means 1 or more structural
practices, land management practices, and comprehensive nutrient management
planning practices.
`(A) IN GENERAL- The term `producer' means an owner, operator,
landlord, tenant, or sharecropper that--
`(i) shares in the risk of producing any crop or livestock;
and
`(ii) is entitled to share in the crop or livestock available
for marketing from a farm (or would have shared had the crop or
livestock been produced).
`(B) HYBRID SEED GROWERS- In determining whether a grower of
hybrid seed is a producer, the Secretary shall not take into consideration
the existence of a hybrid seed contract.
`(11) PROGRAM- The term `program' means the environmental quality
incentives program comprised of sections 1240 through 1240J.
`(12) STRUCTURAL PRACTICE- The term `structural practice'
means--
`(A) the establishment on eligible land of a site-specific animal
waste management facility, terrace, grassed waterway, contour grass strip,
filterstrip, tailwater pit, permanent wildlife habitat, constructed
wetland, or other structural practice that the Secretary determines is
needed to protect, in the most cost effective manner, water, soil, or
related resources from degradation; and
`(B) the capping of abandoned wells on eligible
land.
`SEC. 1240B. ESTABLISHMENT AND ADMINISTRATION OF ENVIRONMENTAL QUALITY
INCENTIVES PROGRAM.
`(1) IN GENERAL- During each of the 2002 through 2006 fiscal years,
the Secretary shall provide technical assistance, cost-share payments, and
incentive payments to producers that enter into contracts with the Secretary
under the program.
`(A) STRUCTURAL PRACTICES- A producer that implements a structural
practice shall be eligible for any combination of technical assistance,
cost-share payments, and education.
`(B) LAND MANAGEMENT PRACTICES- A producer that performs a land
management practice shall be eligible for any combination of technical
assistance, incentive payments, and education.
`(C) COMPREHENSIVE NUTRIENT MANAGEMENT PLANNING- A producer that
develops a comprehensive nutrient management plan shall be eligible for
any combination of technical assistance, incentive payments, and
education.
`(3) EDUCATION- The Secretary may provide conservation education at
national, State, and local levels consistent with the purposes of the
program to--
`(A) any producer that is eligible for assistance under the
program; or
`(B) any producer that is engaged in the production of an
agricultural commodity.
`(b) APPLICATION AND TERM- With respect to practices implemented under
this program--
`(1) a contract between a producer and the Secretary
may--
`(A) apply to 1 or more structural practices, land management
practices, and comprehensive nutrient management planning practices;
and
`(B) have a term of not less that 3, or more than 10 years, as
determined appropriate by the Secretary, depending on the practice or
practices that are the basis of the contract;
`(2) a producer may not enter into more than 1 contract for
structural practices involving livestock nutrient management during the
period of fiscal years 2002 through 2006; and
`(3) a producer that has an interest in more than 1 large confined
livestock operation, as defined by the Secretary, may not enter into more
than 1 contract for cost-share payments for a storage or treatment facility,
or associated waste transport or transfer device, to manage manure, process
wastewater, or other animal waste generated by the large confined livestock
feeding operation.
`(c) APPLICATION AND EVALUATION-
`(1) IN GENERAL- The Secretary shall establish an application and
evaluation process for awarding technical assistance, cost-share payments
and incentive payments to a producer in exchange for the performance of 1 or
more practices that maximize environmental benefits per dollar
expended.
`(2) COMPARABLE ENVIRONMENTAL VALUE-
`(A) IN GENERAL- The Secretary shall establish a process for
selecting applications for technical assistance, cost-share payments, and
incentive payments in any case in which there are numerous applications
for assistance for practices that would provide substantially the same
level of environmental benefits.
`(B) CRITERIA- The process under subparagraph (A) shall be based
on--
`(i) a reasonable estimate of the projected cost of the
proposals described in the applications; and
`(ii) the priorities established under the program, and other
factors, that maximize environmental benefits per dollar
expended.
`(3) CONSENT OF OWNER- If the producer making an offer to implement
a structural practice is a tenant of the land involved in agricultural
production, for the offer to be acceptable, the producer shall obtain the
consent of the owner of the land with respect to the offer.
`(4) BIDDING DOWN- If the Secretary determines that the
environmental values of 2 or more applications for technical assistance,
cost-share payments, or incentive payments are comparable, the Secretary
shall not assign a higher priority to the application only because it would
present the least cost to the program established under the
program.
`(d) COST-SHARE PAYMENTS-
`(1) IN GENERAL- Except as provided in paragraph (2), the cost-share
payments provided to a producer proposing to implement 1 or more practices
under the program shall be not more than 75 percent of the cost of the
practice, as determined by the Secretary.
`(A) LIMITED RESOURCE AND BEGINNING FARMERS- The Secretary may
increase the amount provided to a producer under paragraph (1) to not more
than 90 percent if the producer is a limited resource or beginning farmer
or rancher, as determined by the Secretary.
`(B) COST-SHARE ASSISTANCE FROM OTHER SOURCES- Except as provided
in paragraph (3), any cost-share payments received by a producer from a
State or private organization or person for the implementation of 1 or
more practices on eligible land of the producer shall be in addition to
the payments provided to the producer under paragraph (1).
`(3) OTHER PAYMENTS- A producer shall not be eligible for cost-share
payments for practices on eligible land under the program if the producer
receives cost-share payments or other benefits for the same practice on the
same land under chapter 1 and the program.
`(e) INCENTIVE PAYMENTS- The Secretary shall make incentive payments
in an amount and at a rate determined by the Secretary to be necessary to
encourage a producer to perform 1 or more practices.
`(f) TECHNICAL ASSISTANCE-
`(1) IN GENERAL- The Secretary shall allocate funding under the
program for the provision of technical assistance according to the purpose
and projected cost for which the technical assistance is provided for a
fiscal year.
`(2) AMOUNT- The allocated amount may vary according to--
`(A) the type of expertise required;
`(B) the quantity of time involved; and
`(C) other factors as determined appropriate by the
Secretary.
`(3) LIMITATION- Funding for technical assistance under the program
shall not exceed the projected cost to the Secretary of the technical
assistance provided for a fiscal year.
`(4) OTHER AUTHORITIES- The receipt of technical assistance under
the program shall not affect the eligibility of the producer to receive
technical assistance under other authorities of law available to the
Secretary.
`(5) INCENTIVE PAYMENTS FOR TECHNICAL ASSISTANCE-
`(A) IN GENERAL- A producer that is eligible to receive technical
assistance for a practice involving the development of a comprehensive
nutrient management plan may obtain an incentive payment that can be used
to obtain technical assistance associated with the development of any
component of the comprehensive nutrient management plan.
`(B) PURPOSE- The purpose of the payment shall be to provide a
producer the option of obtaining technical assistance for developing any
component of a comprehensive nutrient management plan from a certified
provider.
`(C) PAYMENT- The incentive payment shall be--
`(i) in addition to cost-share or incentive payments that a
producer would otherwise receive for structural practices and land
management practices;
`(ii) used only to procure technical assistance from a certified
provider that is necessary to develop any component of a comprehensive
nutrient management plan; and
`(iii) in an amount determined appropriate by the Secretary,
taking into account--
`(I) the extent and complexity of the technical assistance
provided;
`(II) the costs that the Secretary would have incurred in
providing the technical assistance; and
`(III) the costs incurred by the private provider in providing
the technical assistance.
`(D) ELIGIBLE PRACTICES- The Secretary may determine, on a case by
case basis, whether the development of a comprehensive nutrient management
plan is eligible for an incentive payment under this
paragraph.
`(E) CERTIFICATION BY SECRETARY-
`(i) IN GENERAL- Only persons that have been certified by the
Secretary under section 1244(f)(3) shall be eligible to provide
technical assistance under this subsection.
`(ii) QUALITY ASSURANCE- The Secretary shall ensure that
certified providers are capable of providing technical assistance
regarding comprehensive nutrient management in a manner that meets the
specifications and guidelines of the Secretary and that meets the needs
of producers under the program.
`(F) ADVANCE PAYMENT- On the determination of the Secretary that
the proposed comprehensive nutrient management of a producer is eligible
for an incentive payment, the producer may receive a partial advance of
the incentive payment in order to procure the services of a certified
provider.
`(G) FINAL PAYMENT- The final installment of the incentive payment
shall be payable to a producer on presentation to the Secretary of
documentation that is satisfactory to the Secretary and that
demonstrates--
`(i) completion of the technical assistance;
and
`(ii) the actual cost of the technical
assistance.
`(g) MODIFICATION OR TERMINATION OF CONTRACTS-
`(1) VOLUNTARY MODIFICATION OR TERMINATION- The Secretary may modify
or terminate a contract entered into with a producer under this chapter
if--
`(A) the producer agrees to the modification or termination;
and
`(B) the Secretary determines that the modification or termination
is in the public interest.
`(2) INVOLUNTARY TERMINATION- The Secretary may terminate a contract
under this chapter if the Secretary determines that the producer violated
the contract.
`SEC. 1240C. EVALUATION OF OFFERS AND PAYMENTS.
`(a) IN GENERAL- In evaluating applications for technical assistance,
cost-share payments, and incentive payments, the Secretary shall accord a
higher priority to assistance and payments that--
`(1) maximize environmental benefits per dollar expended;
and
`(2)(A) address national conservation priorities,
including--
`(i) meeting Federal, State, and local environmental purposes
focused on protecting air and water quality, including assistance to
production systems and practices that avoid subjecting an operation to
Federal, State, or local environmental regulatory systems;
`(ii) applications from livestock producers using managed grazing
systems and other pasture and forage based systems;
`(iii) comprehensive nutrient management;
`(iv) water quality, particularly in impaired
watersheds;
`(vii) pesticide and herbicide management or
reduction;
`(B) are provided in conservation priority areas established under
section 1230(c);
`(C) are provided in special projects under section 1243(f)(4) with
respect to which State or local governments have provided, or will provide,
financial or technical assistance to producers for the same conservation or
environmental purposes; or
`(D) an innovative technology in connection with a structural
practice or land management practice.
`SEC. 1240D. DUTIES OF PRODUCERS.
`To receive technical assistance, cost-share payments, or incentive
payments under the program, a producer shall agree--
`(1) to implement an environmental quality incentives program plan
that describes conservation and environmental purposes to be achieved
through 1 or more practices that are approved by the Secretary;
`(2) not to conduct any practices on the farm or ranch that would
tend to defeat the purposes of the program;
`(3) on the violation of a term or condition of the contract at
anytime the producer has control of the land--
`(A) if the Secretary determines that the violation warrants
termination of the contract--
`(i) to forfeit all rights to receive payments under the
contract; and
`(ii) to refund to the Secretary all or a portion of the
payments received by the owner or operator under the contract, including
any interest on the payments, as determined by the Secretary;
or
`(B) if the Secretary determines that the violation does not
warrant termination of the contract, to refund to the Secretary, or accept
adjustments to, the payments provided to the owner or operator, as the
Secretary determines to be appropriate;
`(4) on the transfer of the right and interest of the producer in
land subject to the contract, unless the transferee of the right and
interest agrees with the Secretary to assume all obligations of the
contract, to refund all cost-share payments and incentive payments received
under the program, as determined by the Secretary;
`(5) to supply information as required by the Secretary to determine
compliance with the program plan and requirements of the program;
`(6) to comply with such additional provisions as the Secretary
determines are necessary to carry out the program plan; and
`(7) to submit a list of all confined livestock feeding operations
wholly or partially owned or operated by the applicant.
`SEC. 1240E. ENVIRONMENTAL QUALITY INCENTIVES PROGRAM PLAN.
`(a) IN GENERAL- To be eligible to receive technical assistance,
cost-share payments, or incentive payments under the program, a producer of a
livestock or agricultural operation shall submit to the Secretary for approval
a plan of operations that specifies practices covered under the program, and
is based on such terms and conditions, as the Secretary considers necessary to
carry out the program, including a description of the practices to be
implemented and the purposes to be met by the implementation of the plan, and
in the case of confined livestock feeding operations, development and
implementation of a comprehensive nutrient management plan, and in the case of
confined livestock feeding operations, development and implementation of a
comprehensive nutrient management plan.
`(b) AVOIDANCE OF DUPLICATION- The Secretary shall, to the maximum
extent practicable, eliminate duplication of planning activities under the
program and comparable conservation programs.
`SEC. 1240F. DUTIES OF THE SECRETARY.
`To the extent appropriate, the Secretary shall assist a producer in
achieving the conservation and environmental goals of a program plan
by--
`(1) providing technical assistance in developing and implementing
the plan;
`(2) providing technical assistance, cost-share payments, or
incentive payments for developing and implementing 1 or more practices, as
appropriate;
`(3) providing the producer with information, education, and
training to aid in implementation of the plan; and
`(4) encouraging the producer to obtain technical assistance,
cost-share payments, or grants from other Federal, State, local, or private
sources.
`SEC. 1240G. LIMITATION ON PAYMENTS.
`(a) IN GENERAL- Subject to subsection (b), the total amount of
cost-share and incentive payments paid to a producer under this chapter shall
not exceed--
`(1) $30,000 for any fiscal year, regardless of whether the producer
has more than 1 contract under this chapter for the fiscal year;
`(2) $90,000 for a contract with a term of 3 years;
`(3) $120,000 for a contract with a term of 4 years; or
`(4) $150,000 for a contract with a term of more than 4
years.
`(b) ATTRIBUTION- An individual or entity shall not receive, directly
or indirectly, total payments from single or multiple contracts under this
chapter that exceed $30,000 for any fiscal year.
`(c) EXCEPTION TO ANNUAL LIMIT- The Secretary may exceed the
limitation on the annual amount of a payment to a producer under subsection
(a)(1) if the Secretary determines that a larger payment is--
`(1) essential to accomplish the land management practice or
structural practice for which the payment is made to the producer;
and
`(2) consistent with the maximization of environmental benefits per
dollar expended and the purposes of this chapter.
`(d) VERIFICATION- The Secretary shall identify individuals and
entities that are eligible for a payment under the program using social
security numbers and taxpayer identification numbers, respectively.
`SEC. 1240H. CONSERVATION INNOVATION GRANTS.
`(a) IN GENERAL- From funds made available to carry out the program,
for each of the 2003 through 2006 fiscal years, the Secretary shall use not
more than $100,000,000 for each fiscal year to pay the cost of competitive
grants that are intended to stimulate innovative approaches to leveraging
Federal investment in environmental enhancement and protection, in conjunction
with agricultural production, through the program.
`(b) USE- The Secretary may award grants under this section to
governmental and nongovernmental organizations and persons, on a competitive
basis, to carry out projects that--
`(1) involve producers that are eligible for payments or technical
assistance under the program;
`(2) implement innovative projects, such as--
`(A) market systems for pollution reduction;
`(B) promoting agricultural best management practices, including
the storing of carbon in the soil;
`(C) protection of source water for human consumption;
and
`(D) reducing negative effects on watersheds, including through
the significant reduction in nutrient applications, as determined by the
Secretary; and
`(3) leverage funds made available to carry out the program with
matching funds provided by State and local governments and private
organizations to promote environmental enhancement and protection in
conjunction with agricultural production.
`(c) COST SHARE- The amount of a grant made under this section to
carry out a project shall not exceed 50 percent of the cost of the
project.
`(d) UNUSED FUNDING- Any funds made available for a fiscal year under
this section that are not obligated by April 1 of the fiscal year may be used
to carry out other activities under this chapter during the fiscal year in
which the funding becomes available.
`SEC. 1240I. SOUTHERN HIGH PLAINS AQUIFER GROUNDWATER
CONSERVATION.
`(a) DEFINITIONS- In this section:
`(A) IN GENERAL- The term `eligible activity' means an activity
carried out to conserve groundwater.
`(B) INCLUSIONS- The term `eligible activity' includes an activity
to--
`(i) improve an irrigation system;
`(ii) reduce the use of water for irrigation (including changing
from high-water intensity crops to low-water intensity crops);
or
`(iii) convert from farming that uses irrigation to dryland
farming.
`(2) SOUTHERN HIGH PLAINS AQUIFER- The term `Southern High Plains
Aquifer' means the portion of the groundwater reserve under Kansas, New
Mexico, Oklahoma, and Texas depicted as Figure 1 in the United States
Geological Survey Professional Paper 1400-B, entitled `Geohydrology of the
High Plains Aquifer in Parts of Colorado, Kansas, Nebraska, New Mexico,
Oklahoma, South Dakota, Texas, and Wyoming'.
`(b) CONSERVATION MEASURES-
`(1) IN GENERAL- Subject to paragraph (2), the Secretary shall
provide cost-share payments, incentive payments, and groundwater education
assistance to producers that draw water from the Southern High Plains
Aquifer to carry out eligible activities.
`(2) LIMITATIONS- The Secretary shall provide a payment to a
producer under this section only if the Secretary determines that the
payment will result in a net savings in groundwater resources on the land of
the producer.
`(3) COOPERATION- In accordance with this subtitle, in providing
groundwater education under this subsection, the Secretary shall cooperate
with--
`(B) land-grant colleges and universities;
`(C) other educational institutions;
`(D) State cooperative extension services; and
`(E) private organizations.
`(1) IN GENERAL- Of the funds made available under section 1241(b)
to carry out the program, the Secretary shall use to carry out this
section--
`(A) $15,000,000 for fiscal year 2003;
`(B) $25,000,000 for each of fiscal years 2004 and
2005;
`(C) $35,000,000 for fiscal year 2006; and
`(D) $0 for fiscal year 2007.
`(2) OTHER FUNDS- Subject to paragraph (3), the funds made available
under this subsection shall be in addition to any other funds provided under
the program.
`(3) UNUSED FUNDING- Any funds made available for a fiscal year
under paragraph (1) that are not obligated by April 1 of the fiscal year
shall be used to carry out other activities in other States under the
program.
`SEC. 1240J. PILOT PROGRAMS.
`(a) DRINKING WATER SUPPLIERS PILOT PROGRAM-
`(1) IN GENERAL- For each fiscal year, the Secretary may carry out,
in watersheds selected by the Secretary, in cooperation with local water
utilities, a pilot program to improve water quality.
`(2) IMPLEMENTATION- The Secretary may select the watersheds
referred to in paragraph (1), and make available funds (including funds for
the provision of incentive payments) to be allocated to producers in
partnership with drinking water utilities in the watersheds, if the drinking
water utilities agree to measure water quality at such intervals and in such
a manner as may be determined by the Secretary.
`(b) NUTRIENT REDUCTION PILOT PROGRAM-
`(1) DEFINITION OF CHESAPEAKE EXECUTIVE COUNCIL- In this subsection,
the term `Chesapeake Executive Council' means the Federal-State
council--
`(i) the mayor of the District of Columbia;
`(ii) the Governors of the States of Maryland, Pennsylvania, and
Virginia;
`(iii) the Administrator of the Environmental Protection Agency;
and
`(iv) the Chair of the Chesapeake Bay Commission;
and
`(B) charged with the policy leadership, coordination, and
implementation of the region-wide Chesapeake Bay Program restoration
effort.
`(2) PROGRAM- For each of fiscal years 2003 through 2006, the
Secretary shall use funds made available to carry out the program, in the
amounts specified in paragraph (5), in the Chesapeake Bay watershed to
provide incentive payments to producers to--
`(A) reduce nutrient loads to the Chesapeake Bay;
and
`(B) achieve the goals of the Chesapeake Executive
Council.
`(3) PRIORITY; MEASUREMENT; PAYMENTS- In carrying out paragraph (2),
the Secretary shall--
`(A) give priority to nutrient reduction techniques that reduce
nutrient applications rates to a level that is substantially below the
level recommended in a best management practice (as identified by the
Secretary);
`(B) measure any reduction in nutrient application rates by an
appropriate indicator of actual performance (such as the level of
nutrients applied or fixed in excess of crop removal); and
`(C) increase the amount of an incentive payment to a producer to
reflect superior performance by the producer.
`(4) PARTNERSHIPS- The Secretary shall carry out this subsection in
partnership with--
`(B) nonprofit organizations approved by the Secretary;
and
`(C) State colleges and universities.
`(A) IN GENERAL- Of the amounts made available under section
1241(b) to carry out the program, the Secretary shall use to carry out
this subsection--
`(i) $10,000,000 for fiscal year 2003;
`(ii) $15,000,000 for fiscal year 2004;
`(iii) $20,000,000 for fiscal year 2005;
`(iv) $25,000,000 for fiscal year 2006; and
`(v) $0 for fiscal year 2007.
`(B) UNEXPENDED FUNDS- Any funds made available for a fiscal year
under subparagraph (A) that are not obligated by April 1 of the fiscal
year shall be used to carry out other activities under this
chapter.
`(c) CONSISTENCY WITH WATERSHED PLAN- In allocating funds for the
pilot programs under subsections (a) and (b) and any other pilot programs
carried out under the program, the Secretary shall take into consideration the
extent to which an application for the funds is consistent with--
`(1) any applicable locally developed watershed plan; and
`(2) the factors established by section 1240C.
`(1) IN GENERAL- In carrying out this section, in addition to other
requirements under the program, the Secretary shall enter into contracts in
accordance with this section with producers the activities of which affect
water quality (including the quality of public drinking water supplies) to
implement and maintain--
`(A) nutrient management;
`(C) soil erosion practices; and
`(D) other conservation activities that protect water quality and
human health.
`(2) REQUIREMENTS- A contract described in paragraph (1)
shall--
`(A) describe the specific nutrient management, pest management,
soil erosion, or other practices to be implemented, maintained, or
improved;
`(B) contain a schedule of implementation for those
practices;
`(C) to the maximum extent practicable, address water quality
priorities of the watershed in which the operation is located;
and
`(D) contain such other terms as the Secretary determines to be
appropriate.'.
(b) FUNDING- Section 1241 of the Food Security Act of 1985 (16 U.S.C.
3841) is amended by striking subsection (b) and inserting the
following:
`(b) ENVIRONMENTAL QUALITY INCENTIVES PROGRAM- Subject to section 241
of the Agriculture, Conservation, and Rural Enhancement Act of 2002, of the
funds of the Commodity Credit Corporation, the Secretary shall make available
to provide technical assistance, cost-share payments, incentive payments,
bonus payments, grants, and education under the environmental quality
incentives program under chapter 4 of subtitle D, to remain available until
expended--
`(1) $500,000,000 for fiscal year 2002;
`(2) $1,300,000,000 for fiscal year 2003;
`(3) $1,450,000,000 for each of fiscal years 2004 and
2005;
`(4) $1,500,000,000 for fiscal year 2006; and
`(5) $850,000,000 for fiscal year 2007.'.
(c) REIMBURSEMENTS- Section 11 of the Commodity Credit Corporation
Charter Act (15 U.S.C. 714i) is amended in the last sentence by inserting `but
excluding transfers and allotments for conservation technical assistance'
after `activities'.
SEC. 214. WETLANDS RESERVE PROGRAM.
(a) TECHNICAL ASSISTANCE- Section 1237(a) of the Food Security Act of
1985 (16 U.S.C. 3837(a)) is amended by inserting `(including the provision of
technical assistance)' before the period at the end.
(b) MAXIMUM ENROLLMENT- Section 1237(b) of the Food Security Act of
1985 (16 U.S.C. 3837(b)) is amended by striking paragraph (1) and inserting
the following:
`(A) IN GENERAL- The total number of acres enrolled in the
wetlands reserve program shall not exceed 2,225,000 acres, of which, to
the maximum extent practicable subject to subparagraph (B), the Secretary
shall enroll 250,000 acres in each calendar year.
`(B) WETLANDS RESERVE ENHANCEMENT ACREAGE- Of the acreage enrolled
under subparagraph (A) for a calendar year, not more than 25,000 acres may
be enrolled in the wetlands reserve enhancement program described in
subsection (h).'.
(c) REAUTHORIZATION- Section 1237(c) of the Food Security Act of 1985
(16 U.S.C. 3837(c)) is amended by striking `2002' and inserting
`2006'.
(d) WETLANDS RESERVE ENHANCEMENT PROGRAM- Section 1237 of the Food
Security Act of 1985 (16 U.S.C. 3837) is amended by adding at the end the
following:
`(h) WETLANDS RESERVE ENHANCEMENT PROGRAM-
`(1) IN GENERAL- Notwithstanding the Federal Grant and Cooperative
Agreement Act of 1977 (41 U.S.C. 501 et seq.), the Secretary may enter into
cooperative agreements with State or local governments, and with private
organizations, to develop, on land that is enrolled, or is eligible to be
enrolled, in the wetland reserve established under this subchapter, wetland
restoration activities in watershed areas.
`(2) PURPOSE- The purpose of the agreements shall be to address
critical environmental issues.
`(3) RELATIONSHIP TO OTHER AUTHORITIES- Nothing in this subsection
limits the authority of the Secretary to enter into a cooperative agreement
with a party under which agreement the Secretary and the party--
`(A) share a mutual interest in the program under this subchapter;
and
`(B) contribute resources to accomplish the purposes of that
program.'.
(e) MONITORING AND MAINTENANCE- Section 1237C(a)(2) of the Food
Security Act of 1985 (16 U.S.C. 3837c(a)(2)) is amended by striking
`assistance' and inserting `assistance (including monitoring and
maintenance)'.
SEC. 215. WATER CONSERVATION.
(a) IN GENERAL- Section 1231(d) of the Food Security Act of 1985 (16
U.S.C. 3831(d)) (as amended by section 212(c)) is amended by striking
`41,100,000' and inserting `40,000,000'.
(b) ADDITIONAL WATER CONSERVATION ACREAGE UNDER CONSERVATION RESERVE
ENHANCEMENT PROGRAM- Section 1231 of the Food Security Act of 1985 (16 U.S.C.
3831) (as amended by section 212(f)) is amended by adding at the end the
following:
`(j) ADDITIONAL WATER CONSERVATION ACREAGE UNDER CONSERVATION RESERVE
ENHANCEMENT PROGRAM-
`(1) DEFINITIONS- In this subsection:
`(i) IN GENERAL- The term `eligible entity'
means--
`(I)(aa) an owner or operator of agricultural land;
or
`(bb) a person or entity that holds water rights in accordance
with or recognized by State law (including a beneficial owner of water
rights in accordance with State law through direct contract with the
individual or entity having legal title to the water rights);
and
`(II) any other landowner.
`(ii) INCLUSIONS- The term `eligible entity' includes an
irrigation district, water district, or similar governmental entity in
the State of California.
`(B) PROGRAM- The term `program' means the conservation reserve
enhancement program described in a notice issued on May 27, 1998 (63 Fed.
Reg. 28965).
`(2) PROTECTION OF PRIVATE PROPERTY RIGHTS-
`(A) WILLING SELLERS AND LESSORS- An agreement may be executed
under this subsection only if each eligible entity that is a party to the
agreement is a willing seller or willing lessor.
`(B) PROPERTY RIGHTS- Nothing in this subsection authorizes the
Federal Government or any State government to condemn private
property.
`(3) ENROLLMENT- In addition to the acreage authorized to be
enrolled under subsection (d), in carrying out the program, the Secretary,
in consultation with eligible States, shall enroll not more than 500,000
acres in eligible States to promote water conservation.
`(4) ELIGIBLE STATES- To be eligible to participate in the program,
a State--
`(A) shall submit to the Secretary, for review and approval, a
proposal that meets the requirements of the program; and
`(i) have established a program or system to protect in-stream
flows or uses; and
`(ii) agree to hold water rights leased or purchased under a
proposal submitted under subparagraph (A).
`(5) ELIGIBLE ACREAGE- An eligible entity may enroll in the program
land in an eligible State that is adjacent to a watercourse or lake, or land
that would contribute to the restoration of a watercourse or lake (as
determined by the Secretary), if--
`(A)(i) the land can be restored as a wetland, grassland, or other
habitat, as determined by the Secretary in accordance with the field
office technical guides and handbooks of the Natural Resources
Conservation Service; and
`(ii) the restoration would significantly improve riparian
functions, as determined by the Secretary; or
`(B) water or water rights appurtenant to the land are leased or
sold to an appropriate State agency or State-designated water trust, as
determined by the Secretary.
`(6) RELATIONSHIP TO OTHER ACREAGE- For any fiscal year, acreage
enrolled under this subsection shall not affect the quantity of--
`(A) acreage enrolled to establish conservation buffers as part of
the program described in a notice issued on March 24, 1998 (63 Fed. Reg.
14109);
`(B) acreage enrolled in the program before the date of enactment
of this subsection; or
`(C) acreage that, as of the date of enactment of this subsection,
is committed by the Secretary for enrollment in the program in any
State.
`(7) DUTIES OF ELIGIBLE ENTITIES- Under a contract entered into with
respect to enrolled land under the program, during the term of the contract,
an eligible entity shall agree--
`(A)(i) to restore the hydrology of the enrolled land to the
maximum extent practicable, as determined by the Secretary;
and
`(ii) to establish on the enrolled land wetland, grassland,
vegetative cover, or other habitat, as determined by the Secretary;
or
`(B) to transfer to the State, or a designee of the State, water
rights appurtenant to the enrolled land.
`(A) IRRIGATED LAND- With respect to irrigated land enrolled in
the program, the rental rate shall be established by the
Secretary--
`(i) on a watershed basis;
`(ii) using data available as of the date on which the rental
rate is established; and
`(iii) at a level sufficient to ensure, to the maximum extent
practicable, that the eligible entity is fairly compensated for the
irrigated land value of the enrolled land.
`(B) NONIRRIGATED LAND- With respect to nonirrigated land enrolled
in the program, the rental rate shall be calculated by the Secretary, in
accordance with the conservation reserve program manual of the
Department.
`(C) APPLICABILITY- An eligible entity that enters into a contract
to enroll land into the program shall receive, in exchange for the
enrollment, payments that are based on--
`(i) the irrigated rental rate described in subparagraph (A), if
the owner or operator agrees to enter into an agreement with the State
and approved by the Secretary under which the State leases, for
in-stream flow purposes or uses, surface water appurtenant to the
enrolled land; or
`(ii) the nonirrigated rental rate described in subparagraph
(B), if an owner or operator does not enter into an agreement described
in clause (i).
`(9) PRIORITY- In carrying out this subsection, the Secretary shall
give priority consideration to any State proposal that--
`(A) provides a State or non-Federal share of 20 percent or more
of the cost of the proposal; and
`(B) significantly advances the goals of Federal, State, tribal,
and local fish, wildlife, and plant conservation plans,
including--
`(i) plans that address--
`(I) multiple endangered species or threatened species (as
defined in section 3 of the Endangered Species Act of 1973 (16 U.S.C.
1532)); or
`(II) species that may become threatened or endangered if
conservation measures are not carried out;
`(ii) agreements entered into, or conservation plans submitted,
under section 6 or 10(a)(2)(A), respectively, of the Endangered Species
Act of 1973 (16 U.S.C. 1535, 1539(a)(2)(A)); or
`(iii) plans that provide benefits to the fish, wildlife, or
plants located in 1 or more--
`(I) refuges within the National Wildlife Refuge System;
or
`(II) State wildlife management areas.
`(10) CONSULTATION- In carrying out this subsection, the Secretary
shall consult with--
`(A) the Secretary of the Interior;
`(C) affected Indian tribes; and
`(D) any affected irrigation districts established or recognized
under State law.
`(11) STATE WATER LAW- Nothing in this subsection--
`(A) preempts any State water law;
`(B) affects any litigation concerning the right or entitlement
to, or lack of right or entitlement to, water that is pending as of the
date of enactment of this subsection;
`(C) expands, alters, or otherwise affects the existence or scope
of any water right of any individual (except to the extent that the
individual agrees otherwise under the program); or
`(D) authorizes or entitles the Federal Government to hold or
purchase any water right.
`(12) IMPLEMENTATION- In carrying out this subsection, the Secretary
shall comply with--
`(A) all interstate compacts, court decrees, and Federal and State
laws (including regulations) that may affect water or water rights;
and
`(B) all procedural and substantive State water law.
`(13) CALIFORNIA WATER LAW-
`(A) IN GENERAL- Nothing in this subsection authorizes the
Secretary to enter into an agreement, in accordance with this subsection,
with a landowner for water obtained from an irrigation district, water
district, or other similar governmental entity in the State of
California.
`(B) DISTRICT PROGRAMS- All landowners participating in the
program through membership in a district or entity described in
subparagraph (A) shall be willing participants in the
program.
`(14) GROUNDWATER- A right to groundwater shall not be subject to
any provision of this subsection unless the right is granted--
`(A) under applicable State law; and
`(B) through a groundwater water rights process that is fully
integrated with the surface water rights process of the applicable
affected State.
`(15) PROHIBITION ON FEDERAL PURCHASE, LEASE, AND RETENTION OF WATER
RIGHTS- No water rights under this subsection shall be purchased, leased, or
held by the Secretary or any other officer or agent of the Federal
Government.
`(16) STATE FLEXIBILITY- With respect to State participation in the
program--
`(A) nothing in this subsection limits any State application to
participate in the program; and
`(B) the Secretary shall accord States full flexibility to carry
out projects and activities under the program.
`(17) ELIGIBLE STATES- Eligible States under this program shall
include only Nevada, California, New Mexico, Washington, Oregon, Maine and
New Hampshire.'.
(c) WATER BENEFITS PROGRAM- Subtitle D of title XII of the Food
Security Act of 1985 (16 U.S.C. 3831 et seq.) is amended by adding at the end
the following:
`CHAPTER 6--WATER CONSERVATION
`SEC. 1240R. WATER BENEFITS PROGRAM.
`(a) DEFINITIONS- In this section:
`(A) IN GENERAL- The term `eligible entity' means--
`(i)(I) an owner or operator of agricultural land;
or
`(II) a person or entity that holds water rights in accordance
with or recognized by State law (including a beneficial owner of water
rights in accordance with State law through direct contract with the
individual or entity having legal title to the water rights);
and
`(ii) any other landowner.
`(B) INCLUSIONS- The term `eligible entity' includes an irrigation
district, water district, or similar governmental entity in the State of
California.
`(2) PROGRAM- The term `program' means the water benefits program
established under subsection (b).
`(b) ESTABLISHMENT- The Secretary, in consultation with eligible
States, shall establish a program to promote water conservation, to be known
as the `water benefits program', under which the Secretary shall, through the
Natural Resources Conservation Service, in consultation with eligible States,
provide cost-share payments to willing eligible entities for--
`(1) in accordance with subsection (f), irrigation efficiency
infrastructure or measures that provide in-stream flows for fish and
wildlife and other environmental purposes or uses;
`(2) converting from production of a water-intensive crop to a crop
that requires less water; or
`(3)(A) the lease, purchase, dry-year optioning, transfer, or
dedication of water or water rights to provide, directly or indirectly
through mechanisms consistent with State water law, in-stream flows for fish
and wildlife and other environmental purposes or uses (including wetland
restoration); or
`(B) the conservation, provision, and protection of water to benefit
fish and wildlife under a State plan approved by the Secretary for those
purposes.
`(c) PROTECTION OF PRIVATE PROPERTY RIGHTS-
`(1) WILLING SELLERS AND LESSORS- An agreement may be executed under
this section only if each eligible entity that is a party to the agreement
is a willing seller or willing lessor.
`(2) PROPERTY RIGHTS- Nothing in this section authorizes the Federal
Government or any State government to condemn private property.
`(d) ELIGIBLE STATES- An eligible entity may receive a payment under
the program if the State in which the eligible entity is located--
`(1)(A) submits to the Secretary a State plan under which the State
holds and enforces water rights leased, purchased, dry-year optioned,
transferred, or dedicated to provide for in-stream flows or other uses that
benefit fish and wildlife; or
`(B) otherwise establishes a State program to conserve, provide, and
protect water to benefit fish and wildlife approved by the
Secretary;
`(2)(A) submits to the Secretary a State plan to protect in-stream
flows or uses; and
`(B) obtains approval of the State programs and plans by the
Secretary;
`(3) designates a State agency to administer the State programs and
plans;
`(4) subjects each lease, purchase, dry-year optioning, transfer,
and dedication of water and water rights to any review and approval required
under State law, such as review and approval by a water board, water court,
or water engineer of the State; and
`(5) ensure that each lease, purchase, dry-year optioning, transfer,
and dedication of water and water rights is consistent with State water
law.
`(e) ROLE OF SECRETARY- In carrying out this section, the Secretary
shall--
`(1) establish guidelines for participating States to pay a portion
of the cost of assisting the conversion from production of water-intensive
crops to crops that require less water;
`(2) establish guidelines, in accordance with the field office and
technical guides and handbooks of the Natural Resources Conservation
Service, for assisting with the cost of on-farm and off-farm irrigation
efficiency infrastructure and measures described in subsection
(f)(2);
`(3) establish guidelines for participating States for--
`(A) the lease, purchase, dry-year optioning, transfer, and
dedication of water and water rights under State plans; or
`(B) the conservation, provision, and protection of water to
benefit fish and wildlife under a program described in subsection
(b)(3)(B);
`(4) establish a program within the Agricultural Research Service,
in collaboration with the United States Geological Survey, to monitor State
efforts under the program, including the construction and maintenance of
stream gauging stations; and
`(5) consult with eligible States, the Secretary of the Interior,
affected Indian tribes, and each affected irrigation district established
under or recognized by State law that makes water available to a
participating eligible entity, particularly with respect to the
establishment and implementation of the program.
`(f) IRRIGATION EFFICIENCY INFRASTRUCTURE AND MEASURES-
`(1) IN GENERAL- The Secretary may pay--
`(A) not more than 75 percent of the cost of converting from
production of a water-intensive crop to a crop that requires less water,
as described in subsection (e)(2); and
`(B) the share determined under subsection (g) of the cost of
on-farm and, in cases in which an irrigation ditch crosses more than 1
farm, off-farm irrigation efficiency infrastructure and measures described
in paragraph (2) if not less than 75 percent of the water conserved as a
result of the infrastructure and measures is permanently allocated,
directly or indirectly, to in-stream flows or uses.
`(2) ELIGIBLE IRRIGATION EFFICIENCY INFRASTRUCTURE AND MEASURES-
Eligible irrigation efficiency land-based and fixed infrastructure and
measures referred to in paragraph (1) are--
`(A) lining of ditches, insulation or installation of piping, and
installation of ditch portals or gates;
`(B) tail water return systems;
`(C) low-energy precision applications;
`(D) low-flow irrigation systems, including drip and trickle
systems and micro-sprinkler systems;
`(F) off-stream storage ponds inundating less than 5 acres that
the Secretary, in consultation with the State, the Secretary of the
Interior, and the Secretary of Commerce, determines to be appropriate to
carry out the program;
`(G) conversion from gravity or flood irrigation to low-flow
sprinkler or drip irrigation systems;
`(H) intake screens, fish passages, and conversion of diversions
to pumps;
`(I) alternate furrow wetting, irrigation scheduling, and similar
measures; and
`(J) such other land-based irrigation efficiency infrastructure
and measures as the Secretary determines to be appropriate to carry out
the program.
`(1) IN GENERAL- The share of the cost of converting from production
of a water-intensive crop to a crop that requires less water, or of an
irrigation efficiency infrastructure or measure assisted under subsection
(f), that is not provided by this section--
`(A) shall be not less than 25 percent; and
`(ii) an owner or operator of a farm or ranch (including an
Indian tribe); or
`(iii) a nonprofit organization;
except that at least 10 percent of the share shall be paid by the
eligible entity.
`(2) INCREASED SHARE- If an owner or operator of a farm or ranch
pays 50 percent or more of the cost of converting from production of a
water-intensive crop to a crop that requires less water, or of an irrigation
efficiency infrastructure or measure, the owner or operator shall retain the
right to use 50 percent of the water conserved by the conversion,
infrastructure, or measure.
`(3) LEASING OF CONSERVED WATER- A State shall give an eligible
entity with respect to land enrolled in the program the option of leasing,
or providing a dry-year option on, conserved water for 30 years.
`(4) WATER LEASE AND PURCHASE- The cost of water or water rights
that are directly leased, purchased, subject to a dry-year option, or
dedicated under this section shall not be subject to the cost-sharing
requirement of this subsection.
`(h) STATE PLAN APPROVAL- In determining whether to approve a State
plan under subsection (d)(3), the Secretary shall consider the extent to which
the State plan significantly advances the goals of Federal, State, tribal, and
local fish, wildlife, and plant conservation plans, including--
`(1) plans that address--
`(A) multiple endangered species or threatened species (as defined
in section 3 of the Endangered Species Act of 1973 (16 U.S.C. 1532));
or
`(B) species that may become threatened or endangered if
conservation measures are not carried out;
`(2) agreements entered into, or conservation plans submitted, under
section 6 or 10(a)(2)(A), respectively, of the Endangered Species Act of
1973 (16 U.S.C. 1535, 1539(a)(2)(A)); and
`(3) plans that provide benefits to the fish, wildlife, or plants
located in 1 or more--
`(A) refuges within the National Wildlife Refuge System;
or
`(B) State wildlife management areas.
`(i) STATE WATER LAW- Nothing in this section--
`(1) preempts any State water law;
`(2) affects any litigation concerning the right or entitlement to,
or lack of right or entitlement to, water that is pending as of the date of
enactment of this section;
`(3) expands, alters, or otherwise affects the existence or scope of
any water right of any individual (except to the extent that the individual
agrees otherwise under the program); or
`(4) authorizes or entitles the Federal Government to hold or
purchase any water right.
`(j) IMPLEMENTATION- In carrying out this section, the Secretary shall
comply with--
`(1) all interstate compacts, court decrees, and Federal and State
laws (including regulations) that may affect water or water rights;
and
`(2) all procedural and substantive State water law.
`(k) CALIFORNIA WATER LAW-
`(1) IN GENERAL- Nothing in this section authorizes the Secretary to
enter into an agreement, in accordance with this section, with a landowner
for water obtained from an irrigation district, water district, or other
similar governmental entity in the State of California.
`(2) DISTRICT PROGRAMS- All landowners participating in the program
through membership in a district or entity described in paragraph (1) shall
be willing participants in the program.
`(l) GROUNDWATER- A right to groundwater shall not be subject to any
provision of this section unless the right is granted--
`(1) under applicable State law; and
`(2) through a groundwater water rights process that is fully
integrated with the surface water rights process of the applicable affected
State.
`(m) PROHIBITION ON FEDERAL PURCHASE, LEASE, AND RETENTION OF WATER
RIGHTS- No water rights under this section shall be purchased, leased, or held
by the Secretary or any other officer or agent of the Federal
Government.
`(n) EXEMPTION FOR CERTAIN STATES- This section shall not apply to the
States of Nebraska and North Dakota.
`(1) IN GENERAL- Of the funds of the Commodity Credit Corporation,
the Secretary shall make available to carry out this section--
`(A) $25,000,000 for fiscal year 2002;
`(B) $52,000,000 for fiscal year 2003; and
`(C) $100,000,000 for each of fiscal years 2004 through
2006.
`(2) LIMITATION ON EXPENDITURES- For any fiscal year, a State may
expend not more than 75 percent of the funds made available to the State
under the program to pay--
`(A) the cost of converting from production of a water-intensive
crop to a crop that requires less water; or
`(B) the cost of irrigation efficiency infrastructure and measures
under subsection (f)(1).
`(3) MONITORING PROGRAM- For each fiscal year, of the funds made
available under paragraph (1), the Secretary shall use not more than
$5,000,000 to carry out the monitoring program under subsection
(e)(5).
`(A) FEDERAL- For each fiscal year, of the funds made available
under paragraph (1), the Secretary shall such sums as are necessary for
administration and technical assistance.
`(B) STATE- For each fiscal year, of the funds made available
under paragraph (1), not more than 3 percent shall be made available to
States for administration of the program.
`(5) ELIGIBLE STATES- Eligible States under this program shall
include only Nevada, California, New Mexico, Oregon, Washington, Maine and
New Hampshire.'.
(d) CONFORMING AMENDMENT- Section 1231(b)(6) of the Food Security Act
of 1985 (16 U.S.C. 3831(b)(6)) (as amended by section 212(b)(1)) is amended by
striking subparagraph (B) and inserting the following:
`(B)(i) into the conservation reserve enhancement program
described in a notice issued on May 27, 1998 (63 Fed. Reg. 28965) (or a
successor program); or
`(ii) under subsection (j).'.
SEC. 216. RESOURCE CONSERVATION AND DEVELOPMENT PROGRAM.
Subtitle H of title XV of the Agriculture and Food Act of 1981 (16
U.S.C. 3451 et seq.) is amended to read as follows:
`Subtitle H--Resource Conservation and Development
Program
`SEC. 1528. DEFINITIONS.
`(1) AREA PLAN- The term `area plan' means a resource conservation
and use plan developed through a planning process by a council for a
designated area of 1 or more States, or of land under the jurisdiction of an
Indian tribe, that includes 1 or more of the following elements:
`(A) A land conservation element, the purpose of which is to
control erosion and sedimentation.
`(B) A water management element that provides 1 or more clear
environmental or conservation benefits, the purpose of which is to provide
for--
`(i) the conservation, use, and quality of water, including
irrigation and rural water supplies;
`(ii) the mitigation of floods and high water
tables;
`(iii) the repair and improvement of
reservoirs;
`(iv) the improvement of agricultural water management;
and
`(v) the improvement of water quality.
`(C) A community development element, the purpose of which is to
improve--
`(i) the development of resources-based
industries;
`(ii) the protection of rural industries from natural resource
hazards;
`(iii) the development of adequate rural water and waste
disposal systems;
`(iv) the improvement of recreation facilities;
`(v) the improvement in the quality of rural
housing;
`(vi) the provision of adequate health and education
facilities;
`(vii) the satisfaction of essential transportation and
communication needs; and
`(viii) the promotion of food security, economic development,
and education.
`(D) A land management element, the purpose of which
is--
`(i) energy conservation, including the production of energy
crops;
`(ii) the protection of agricultural land, as appropriate, from
conversion to other uses;
`(iii) farmland protection; and
`(iv) the protection of fish and wildlife
habitats.
`(2) BOARD- The term `Board' means the Resource Conservation and
Development Policy Advisory Board established under section
1533(a).
`(3) COUNCIL- The term `council' means a nonprofit entity (including
an affiliate of the entity) operating in a State that is--
`(A) established by volunteers or representatives of States, local
units of government, Indian tribes, or local nonprofit organizations to
carry out an area plan in a designated area; and
`(B) designated by the chief executive officer or legislature of
the State to receive technical assistance and financial assistance under
this subtitle.
`(4) DESIGNATED AREA- The term `designated area' means a geographic
area designated by the Secretary to receive technical assistance and
financial assistance under this subtitle.
`(5) FINANCIAL ASSISTANCE- The term `financial assistance' means a
grant or loan provided by the Secretary (or the Secretary and other Federal
agencies) to, or a cooperative agreement entered into by the Secretary (or
the Secretary and other Federal agencies) with, a council, or association of
councils, to carry out an area plan in a designated area, including
assistance provided for planning, analysis, feasibility studies, training,
education, and other activities necessary to carry out the area
plan.
`(6) INDIAN TRIBE- The term `Indian tribe' has the meaning given the
term by section 4 of the Indian Self-Determination and Education Assistance
Act (25 U.S.C. 450b).
`(7) LOCAL UNIT OF GOVERNMENT- The term `local unit of government'
means--
`(A) any county, city, town, township, parish, village, or other
general-purpose subdivision of a State; and
`(B) any local or regional special district or other limited
political subdivision of a State, including any soil conservation
district, school district, park authority, and water or sanitary
district.
`(8) NONPROFIT ORGANIZATION- The term `nonprofit organization' means
any organization that is--
`(A) described in section 501(c) of the Internal Revenue Code of
1986; and
`(B) exempt from taxation under section 501(a) of the Internal
Revenue Code of 1986.
`(9) PLANNING PROCESS- The term `planning process' means actions
taken by a council to develop and carry out an effective area plan in a
designated area, including development of the area plan, goals, purposes,
policies, implementation activities, evaluations and reviews, and the
opportunity for public participation in the actions.
`(10) PROJECT- The term `project' means a project that is carried
out by a council to achieve any of the elements of an area plan.
`(11) SECRETARY- The term `Secretary' means the Secretary of
Agriculture.
`(12) STATE- The term `State' means--
`(B) the District of Columbia; or
`(C) any territory or possession of the United
States.
`(13) TECHNICAL ASSISTANCE- The term `technical assistance' means
any service provided by the Secretary or agent of the Secretary,
including--
`(A) inventorying, evaluating, planning, designing, supervising,
laying out, and inspecting projects;
`(B) providing maps, reports, and other documents associated with
the services provided;
`(C) providing assistance for the long-term implementation of area
plans; and
`(D) providing services of an agency of the Department of
Agriculture to assist councils in developing and carrying out area
plans.
`SEC. 1529. RESOURCE CONSERVATION AND DEVELOPMENT PROGRAM.
`The Secretary shall establish a resource conservation and development
program under which the Secretary shall provide technical assistance and
financial assistance to councils to develop and carry out area plans and
projects in designated areas--
`(1) to conserve and improve the use of land, develop natural
resources, and improve and enhance the social, economic, and environmental
conditions in primarily rural areas of the United States; and
`(2) to encourage and improve the capability of State, units of
government, Indian tribes, nonprofit organizations, and councils to carry
out the purposes described in paragraph (1).
`SEC. 1530. SELECTION OF DESIGNATED AREAS.
`The Secretary shall select designated areas for assistance under this
subtitle on the basis of the elements of area plans.
`SEC. 1531. POWERS OF THE SECRETARY.
`In carrying out this subtitle, the Secretary may--
`(1) provide technical assistance to any council to assist in
developing and implementing an area plan for a designated area;
`(2) cooperate with other departments and agencies of the Federal
Government, States, local units of government, local Indian tribes, and
local nonprofit organizations in conducting surveys and inventories,
disseminating information, and developing area plans;
`(3) assist in carrying out an area plan approved by the Secretary
for any designated area by providing technical assistance and financial
assistance to any council; and
`(4) enter into agreements with councils in accordance with section
1532.
`SEC. 1532. ELIGIBILITY; TERMS AND CONDITIONS.
`(a) ELIGIBILITY- Technical assistance and financial assistance may be
provided by the Secretary under this subtitle to any council to assist in
carrying out a project specified in an area plan approved by the Secretary
only if--
`(1) the council agrees in writing--
`(A) to carry out the project; and
`(B) to finance or arrange for financing of any portion of the
cost of carrying out the project for which financial assistance is not
provided by the Secretary under this subtitle;
`(2) the project is included in an area plan and is approved by the
council;
`(3) the Secretary determines that assistance is necessary to carry
out the area plan;
`(4) the project provided for in the area plan is consistent with
any comprehensive plan for the area;
`(5) the cost of the land or an interest in the land acquired or to
be acquired under the plan by any State, local unit of government, Indian
tribe, or local nonprofit organization is borne by the State, local unit of
government, Indian tribe, or local nonprofit organization, respectively;
and
`(6) the State, local unit of government, Indian tribe, or local
nonprofit organization participating in the area plan agrees to maintain and
operate the project.
`(1) IN GENERAL- Subject to paragraphs (2) and (3), a loan made
under this subtitle shall be made on such terms and conditions as the
Secretary may prescribe.
`(2) TERM- A loan for a project made under this subtitle shall have
a term of not more than 30 years after the date of completion of the
project.
`(3) INTEREST RATE- A loan made under this subtitle shall bear
interest at the average rate of interest paid by the United States on
obligations of a comparable term, as determined by the Secretary of the
Treasury.
`(c) APPROVAL BY SECRETARY- Technical assistance and financial
assistance under this subtitle may not be made available to a council to carry
out an area plan unless the area plan has been submitted to and approved by
the Secretary.
`(d) WITHDRAWAL- The Secretary may withdraw technical assistance and
financial assistance with respect to any area plan if the Secretary determines
that the assistance is no longer necessary or that sufficient progress has not
been made toward developing or implementing the elements of the area
plan.
`(e) USE OF OTHER ENTITIES AND PERSONS- A council may use another
person or entity to assist in developing and implementing an area plan and
otherwise carrying out this subtitle.
`SEC. 1533. RESOURCE CONSERVATION AND DEVELOPMENT POLICY ADVISORY
BOARD.
`(a) ESTABLISHMENT- The Secretary shall establish within the
Department of Agriculture a Resource Conservation and Development Policy
Advisory Board.
`(1) IN GENERAL- The Board shall be composed of at least 7 employees
of the Department of Agriculture selected by the Secretary.
`(2) CHAIRPERSON- A member of the Board shall be designated by the
Secretary to serve as chairperson of the Board.
`(c) DUTIES- The Board shall advise the Secretary regarding the
administration of this subtitle, including the formulation of policies for
carrying out this subtitle.
`SEC. 1534. EVALUATION OF PROGRAM.
`(a) IN GENERAL- The Secretary, in consultation with councils, shall
evaluate the program established under this subtitle to determine whether the
program is effectively meeting the needs of, and the purposes identified by,
States, units of government, Indian tribes, nonprofit organizations, and
councils participating in, or served by, the program.
`(b) REPORT- Not later than June 30, 2005, the Secretary shall submit
to the Committee on Agriculture of the House of Representatives and the
Committee on Agriculture, Nutrition, and Forestry of the Senate a report
describing the results of the evaluation, together with any recommendations of
the Secretary for continuing, terminating, or modifying the program.
`SEC. 1535. LIMITATION ON ASSISTANCE.
`In carrying out this subtitle, the Secretary shall provide technical
assistance and financial assistance with respect to not more than 450 active
designated areas.
`SEC. 1536. SUPPLEMENTAL AUTHORITY OF THE SECRETARY.
`The authority of the Secretary under this subtitle to assist councils
in the development and implementation of area plans shall be supplemental to,
and not in lieu of, any authority of the Secretary under any other provision
of law.
`SEC. 1537. AUTHORIZATION OF APPROPRIATIONS.
`(a) IN GENERAL- There are authorized to be such sums as are necessary
to carry out this subtitle.
`(b) LOANS- The Secretary shall not use more than $15,000,000 of any
funds made available for a fiscal year to make loans under this
subtitle.
`(c) AVAILABILITY- Funds appropriated to carry out this subtitle shall
remain available until expended.'.
SEC. 217. WILDLIFE HABITAT INCENTIVE PROGRAM.
(a) IN GENERAL- Chapter 5 of subtitle D of title XII of the Food
Security Act of 1985 (16 U.S.C. 3839bb et seq.) is amended to read as
follows:
`CHAPTER 5--OTHER CONSERVATION PROGRAMS
`SEC. 1240M. WILDLIFE HABITAT INCENTIVE PROGRAM.
`(a) DEFINITIONS- In this section:
`(1) ENDANGERED SPECIES- The term `endangered species' has the
meaning given the term in section 3 of the Endangered Species Act of 1973
(16 U.S.C. 1532).
`(2) PROGRAM- The term `program' means the wildlife habitat
incentive program established under subsection (b).
`(3) SENSITIVE SPECIES- The term `sensitive species' has the meaning
given the term `candidate species' within the meaning of section 424.02(b)
of title 50, Code of Federal Regulations (or a successor regulation) or a
species which may become threatened or endangered if conservation actions
are not taken to conserve that species.
`(4) THREATENED SPECIES- The term `threatened species' has the
meaning given the term in section 3 of the Endangered Species Act of 1973
(16 U.S.C. 1532).
`(b) ESTABLISHMENT- In consultation with the State technical
committees established under section 1261 of the Food Security Act of 1985 (16
U.S.C. 3861), the Secretary shall establish the wildlife habitat incentive
program.
`(c) COST-SHARE PAYMENTS-
`(1) IN GENERAL- Under the program, the Secretary shall make
cost-share payments, and provide technical assistance, to landowners of
eligible land to develop and enhance wildlife habitat (including aquatic
habitat) approved by the Secretary.
`(2) ENDANGERED AND THREATENED SPECIES- Of the funds made available
to carry out this subsection, the Secretary shall use at least 15 percent to
make cost-share payments to carry out projects and activities relating to
endangered species, threatened species, and sensitive species.
`(d) PILOT PROGRAM FOR ESSENTIAL PLANT AND ANIMAL HABITAT- Under the
program, the Secretary may establish procedures to use not more than 15
percent of funds made available to acquire and enroll eligible land for
periods of at least 15 years to protect and restore essential (as determined
by the Secretary) plant and animal habitat.
`(e) ELIGIBLE PARTIES- After consulting, to the maximum extent
practicable, with State wildlife officials, the Secretary may provide grants
under this section to individuals and nonprofit organizations that lease
public land.
`(f) NEXUS TO PRIVATE LAND- Funds from a grant provided under
subsection (e) may be used, as determined by the Secretary, for a purpose on
public land if the purpose benefits private land.
`(g) FUNDING- Of the funds of the Commodity Credit Corporation, the
Secretary shall use to carry out this section (including the provision of
technical assistance), to remain available until expended--
`(1) $50,000,000 for fiscal year 2002;
`(2) $225,000,000 for fiscal year 2003;
`(3) $275,000,000 for fiscal year 2004;
`(4) $325,000,000 for fiscal years 2005;
`(5) $355,000,000 for fiscal year 2006; and
`(6) $50,000,000 for fiscal year 2007.'.
`SEC. 1240N. WATERSHED RISK REDUCTION.
`(a) IN GENERAL- The Secretary, acting through the Natural Resources
Conservation Service (referred to in this section as the `Secretary'), in
cooperation with landowners and land users, may carry out such projects and
activities (including the purchase of floodplain easements for runoff
retardation and soil erosion prevention) as the Secretary determines to be
necessary to safeguard lives and property from floods, drought, and the
products of erosion on any watershed in any case in which fire, flood, or any
other natural occurrence has caused, is causing, or may cause a sudden
impairment of that watershed.
`(b) PRIORITY- In carrying out this section, the Secretary shall give
priority to any project or activity described in subsection (a) that is
carried out on a floodplain adjacent to a major river, as determined by the
Secretary.
`(c) PROHIBITION ON DUPLICATIVE FUNDS- No project or activity under
subsection (a) that is carried out using funds made available under this
section may be carried out using funds made available under any Federal
disaster relief program administered by the Secretary relating to
floods.
`(d) FUNDING- There is authorized to be appropriated to carry out this
section $15,000,000 for each of fiscal years 2002 through 2006.
`SEC. 1240O. GREAT LAKES BASIN PROGRAM FOR SOIL EROSION AND SEDIMENT
CONTROL.
`(a) IN GENERAL- The Secretary, in consultation with the Great Lakes
Commission created by Article IV of the Great Lakes Basin Compact (82 Stat.
415) and in cooperation with the Administrator of the Environmental Protection
Agency and the Secretary of the Army, may carry out the Great Lakes basin
program for soil erosion and sediment control (referred to in this section as
the `program').
`(b) ASSISTANCE- In carrying out the program, the Secretary
may--
`(1) provide project demonstration grants, provide technical
assistance, and carry out information and education programs to improve
water quality in the Great Lakes basin by reducing soil erosion and
improving sediment control; and
`(2) provide a priority for projects and activities that directly
reduce soil erosion or improve sediment control.
`(c) AUTHORIZATION OF APPROPRIATIONS- There is authorized to be
appropriated to carry out this section $5,000,000 for each of fiscal years
2002 through 2006.
`SEC. 1240P. CONSERVATION OF PRIVATE GRAZING LAND.
`(a) FINDINGS- Congress finds that--
`(1) private grazing land constitutes nearly 1/2 of the non-Federal
land of the United States and is basic to the environmental, social, and
economic stability of rural communities;
`(2) private grazing land contains a complex set of interactions
among soil, water, air, plants, and animals;
`(3) grazing land constitutes the single largest watershed cover
type in the United States and contributes significantly to the quality and
quantity of water available for all of the many uses of the land;
`(4) private grazing land constitutes the most extensive wildlife
habitat in the United States;
`(5) private grazing land can provide opportunities for improved
nutrient management from land application of animal manures and other
by-product nutrient resources;
`(6) landowners and managers of private grazing land need to
continue to recognize conservation problems when the problems arise and
receive sound technical assistance to improve or conserve grazing land
resources to meet ecological and economic demands;
`(7) new science and technology must continually be made available
in a practical manner so owners and managers of private grazing land may
make informed decisions concerning vital grazing land resources;
`(8) agencies of the Department with private grazing land
responsibilities are the agencies that have the expertise and experience to
provide technical assistance, education, and research to owners and managers
of private grazing land for the long-term productivity and ecological health
of grazing land;
`(9) although competing demands on private grazing land resources
are greater than ever before, assistance to private owners and managers of
private grazing land is limited and does not meet the demand and basic need
for adequately sustaining or enhancing the private grazing land resources;
and
`(10) private grazing land can be enhanced to provide many benefits
to all citizens of the United States through voluntary cooperation among
owners and managers of the land, local conservation districts, and the
agencies of the Department responsible for providing assistance to owners
and managers of land and to conservation districts.
`(b) PURPOSE- The purpose of this section is to authorize the
Secretary to provide a coordinated technical, educational, and related
assistance program to conserve and enhance private grazing land resources and
provide related benefits to all citizens of the United States by--
`(1) establishing a coordinated and cooperative Federal, State,
tribal, and local grazing conservation program for management of private
grazing land;
`(2) strengthening technical, educational, and related assistance
programs that provide assistance to owners and managers of private grazing
land;
`(3) conserving and improving wildlife habitat on private grazing
land;
`(4) conserving and improving fish habitat and aquatic systems
through grazing land conservation treatment;
`(5) protecting and improving water quality;
`(6) improving the dependability and consistency of water
supplies;
`(7) identifying and managing weed, noxious weed, and brush
encroachment problems on private grazing land; and
`(8) integrating conservation planning and management decisions by
owners and managers of private grazing land, on a voluntary
basis.
`(c) DEFINITION OF PRIVATE GRAZING LAND- In this section, the term
`private grazing land land' means rangeland, pastureland, grazed forest land,
hay land, and any other non-federally owned land that is--
`(2) owned by a State; or
`(3) under the jurisdiction of an Indian tribe .
`(d) PRIVATE GRAZING LAND CONSERVATION ASSISTANCE-
`(1) IN GENERAL- Subject to the availability of appropriations for
this section, the Secretary shall establish a voluntary program to provide
technical, educational, and related assistance to owners and managers of
private grazing land and public agencies, through local conservation
districts, to enable the landowners, managers, and public agencies to
voluntarily carry out activities that are consistent with this section,
including--
`(A) maintaining and improving private grazing land and the
multiple values and uses that depend on private grazing
land;
`(B) implementing grazing land management
technologies;
`(C) managing resources on private grazing land,
including--
`(i) planning, managing, and treating private grazing land
resources;
`(ii) ensuring the long-term sustainability of private grazing
land resources;
`(iii) harvesting, processing, and marketing private grazing
land resources; and
`(iv) identifying and managing weed, noxious weed, and brush
encroachment problems;
`(D) protecting and improving the quality and quantity of water
yields from private grazing land;
`(E) maintaining and improving wildlife and fish habitat on
private grazing land;
`(F) enhancing recreational opportunities on private grazing
land;
`(G) maintaining and improving the aesthetic character of private
grazing land; and
`(H) identifying the opportunities and encouraging the
diversification of private grazing land enterprises.
`(A) FUNDING- Funds may be used to carry out this section only if
the funds are provided through a specific line-item in the annual
appropriations for the Natural Resources Conservation
Service.
`(B) TECHNICAL ASSISTANCE AND EDUCATION- Personnel of the
Department of Agriculture trained in pasture and range management shall be
made available under the program to deliver and coordinate technical
assistance and education to owners and managers of private grazing land,
at the request of the owners and managers.
`(e) GRAZING TECHNICAL ASSISTANCE SELF-HELP-
`(1) FINDINGS- Congress finds that--
`(A) there is a severe lack of technical assistance for farmers
and ranchers that graze livestock;
`(B) Federal budgetary constraints preclude any significant
expansion, and may force a reduction of, levels of technical support;
and
`(C) farmers and ranchers have a history of cooperatively working
together to address common needs in the promotion of their products and in
the drainage of wet areas through drainage districts.
`(2) ESTABLISHMENT OF GRAZING DEMONSTRATION DISTRICTS- In accordance
with paragraph (3), the Secretary may establish 2 grazing management
demonstration districts on the recommendation of the grazing land
conservation initiative steering committee.
`(A) PROPOSAL- Within a reasonable time after the submission of a
proposal of an organization of farmers or ranchers engaged in grazing in a
district, subject to subparagraphs (B) through (F), the Secretary
establish a grazing management district in accordance with the
proposal.
`(B) FUNDING- The terms and conditions of the funding and
operation of the grazing management district shall be proposed by the
farmers and ranchers engaged in grazing in the district.
`(C) APPROVAL- The Secretary shall approve the proposal if the
Secretary determines that the proposal--
`(ii) will promote sound grazing practices; and
`(iii) contains provisions similar to the provisions contained
in the beef promotion and research order issued under section 4 of the
Beef Research and Information Act (7 U.S.C. 2903) in effect on April 4,
1996.
`(D) AREA INCLUDED- The area proposed to be included in a grazing
management district shall be determined by the Secretary on the basis of
the proposal submitted by farmers or ranchers under subparagraph
(A).
`(E) AUTHORIZATION- The Secretary may use authority under the
Agricultural Adjustment Act (7 U.S.C. 601 et seq.), reenacted with
amendments by the Agricultural Marketing Agreement Act of 1937, to
operate, on a demonstration basis, a grazing management
district.
`(F) ACTIVITIES- The activities of a grazing management district
shall be scientifically sound activities, as determined by the Secretary
in consultation with a technical advisory committee composed of farmers,
ranchers, and technical experts.
`(f) AUTHORIZATION OF APPROPRIATIONS- There is authorized to be
appropriated to carry out this section $60,000,000 for each of fiscal years
2002 through 2006.
`SEC. 1240Q. GRASSROOTS SOURCE WATER PROTECTION PROGRAM.
`(a) IN GENERAL- The Secretary shall establish a national grassroots
water protection program to more effectively use onsite technical assistance
capabilities of each State rural water association that, as of the date of
enactment of this section, operates a wellhead or groundwater protection
program in the State.
`(b) AUTHORIZATION OF APPROPRIATIONS- There is authorized to be
appropriated to carry out this section $5,000,000 for each of fiscal years
2002 through 2006.'.
(b) CONFORMING AMENDMENT- Section 386 of the Federal Agriculture
Improvement and Reform Act of 1996 (16 U.S.C. 2005b) is repealed.
SEC. 218. FARMLAND PROTECTION PROGRAM.
(a) IN GENERAL- Chapter 2 of the Food Security Act of 1985 (as added
by section 201) is amended by adding at the end the following:
`Subchapter B--Farmland Protection Program
`SEC. 1238H. DEFINITIONS.
`(1) ELIGIBLE ENTITY- The term `eligible entity' means--
`(A) any agency of any State or local government or an Indian
tribe (including a farmland protection board or land resource council
established under State law); or
`(B) any organization that--
`(i) is organized for, and at all times since the formation of
the organization has been operated principally for, 1 or more of the
conservation purposes specified in clause (i), (ii), or (iii) of section
170(h)(4)(A) of the Internal Revenue Code of 1986;
`(ii) is an organization described in section 501(c)(3) of that
Code that is exempt from taxation under section 501(a) of that
Code;
`(iii) is described in section 509(a)(2) of that Code;
or
`(iv) is described in section 509(a)(3), and is controlled by an
organization described in section 509(a)(2), of that
Code.
`(A) IN GENERAL- The term `eligible land' means land on a farm or
ranch that--
`(i)(I) has prime, unique, or other productive soil;
or
`(II) contains historical or archaeological resources;
and
`(ii) is subject to a pending offer for purchase from an
eligible entity.
`(B) INCLUSIONS- The term `eligible land' includes, on a farm or
ranch--
`(v) forest land that is part of an agricultural operation, as
determined by the Secretary.
`(3) INDIAN TRIBE- The term `Indian tribe' has the meaning given the
term in section 4 of the Indian Self-Determination and Education Assistance
Act (25 U.S.C. 450b).
`(4) PROGRAM- The term `program' means the farmland protection
program established under section 1238I(a).
`SEC. 1238I. FARMLAND PROTECTION.
`(a) IN GENERAL- The Secretary, acting through the Natural Resources
Conservation Service, shall establish and carry out a farmland protection
program under which the Secretary shall purchase conservation easements or
other interests in eligible land that is subject to a pending offer from an
eligible entity for the purpose of protecting topsoil by limiting
nonagricultural uses of the land.
`(b) CONSERVATION PLAN- Any highly erodible cropland for which a
conservation easement or other interest is purchased under this subchapter
shall be subject to the requirements of a conservation plan that requires, at
the option of the Secretary, the conversion of the cropland to less intensive
uses.
`SEC. 1238J. MARKET VIABILITY PROGRAM.
`For each year for which funds are made available to carry out this
subchapter, the Secretary may use not more than $10,000,000 to provide
matching market viability grants and technical assistance to farm and ranch
operators that participate in the program.'.
(b) FUNDING- Section 1241 of the Food Security Act of 1985 (16 U.S.C.
3841) (as amended by section 202) is amended by adding at the end the
following:
`(d) FARMLAND PROTECTION PROGRAM-
`(1) IN GENERAL- Of the funds of the Commodity Credit Corporation,
the Secretary shall use to carry out subchapter B of chapter 2 (including
the provision of technical assistance), to remain available until
expended--
`(A) $150,000,000 in fiscal year 2002;
`(B) $250,000,000 in fiscal year 2003;
`(C) $400,000,000 in fiscal year 2004;
`(D) $450,000,000 in fiscal year 2005;
`(E) $500,000,000 in fiscal year 2006; and
`(F) $100,000,000 in fiscal year 2007.
`(A) FARMLAND PROTECTION-
`(i) SHARE PROVIDED UNDER THIS SUBSECTION- The share of the cost
of purchasing a conservation easement or other interest in eligible land
described in section 1238I(a) provided under this subsection shall not
exceed 50 percent of the appraised fair market value of the conservation
easement or other interest in eligible land.
`(ii) SHARE NOT PROVIDED UNDER THIS SUBSECTION- As part of the
share of the cost of purchasing a conservation easement or other
interest in eligible land described in section 1238I(a) that is not
provided under this subsection, an eligible entity may include a
charitable donation by the private landowner from which the eligible
land is to be purchased of not more than 25 percent of the fair market
value of the conservation easement or other interest in eligible
land.
`(iii) BIDDING DOWN- If the Secretary determines that 2 or more
applications for the purchase of a conservation easement or other
interest in eligible land described in section 1238I(a) are comparable
in achieving the purposes of section 1238I, the Secretary shall not
assign a higher priority to any 1 of those applications solely on the
basis of lesser cost to the farmland protection program established
under section 1238I(a).
`(B) MARKET VIABILITY CONTRIBUTIONS- As a condition of receiving a
grant under section 1238J, a grantee shall provide funds in an amount
equal to the amount of the grant.'.
(c) CONFORMING AMENDMENT-
(1) IN GENERAL- Section 388 of the Federal Agriculture Improvement
and Reform Act of 1996 (16 U.S.C. 3830 note) is repealed.
(2) EFFECT ON CONTRACTS- The amendment made by paragraph (1) shall
have no effect on any contract entered into under section 388 of the Federal
Agriculture Improvement and Reform Act of 1996 (16 U.S.C. 3830 note) that is
in effect as of the date of enactment of this Act.
SEC. 219. GRASSLAND RESERVE PROGRAM.
Chapter 2 of the Food Security Act of 1985 (as amended by section 218)
is amended by adding at the end the following:
`Subchapter C--Grassland Reserve Program
`SEC. 1238N. GRASSLAND RESERVE PROGRAM.
`(a) ESTABLISHMENT- The Secretary, acting through the Natural Resource
Conservation Service, shall establish a grassland reserve program (referred to
in this subchapter as the `program') to assist owners in restoring and
protecting eligible land described in subsection (c).
`(b) ENROLLMENT CONDITIONS-
`(1) IN GENERAL- The Secretary shall enroll in the program, from
willing owners, not less than--
`(A) 100 contiguous acres of land west of the 98th meridian;
or
`(B) except as provided in paragraph (2), 40 contiguous acres of
land east of the 98th meridian.
`(2) MAXIMUM ENROLLMENT- The total number of acres enrolled in the
program shall not exceed 2,000,000 acres, of which not more than 500,000
acres shall be available for enrollment of tracts of native grassland of 40
acres or less that are located east of the 98th meridian.
`(3) METHODS OF ENROLLMENT- The Secretary shall enroll land in the
program through--
`(A) permanent easements or 30-year easements;
`(B) in a State that imposes a maximum duration for such an
easement, an easement for the maximum duration allowed under State law;
or
`(C) a 30-year rental agreement.
`(c) ELIGIBLE LAND- Land shall be eligible to be enrolled in the
program if the Secretary determines that the land is private land that
is--
`(1) natural grassland (including prairie and land that contains
shrubs or forb) that is indigenous to the locality;
`(A) is located in an area that has been historically dominated by
natural grassland; and
`(B) has potential to serve as habitat for animal or plant
populations of significant ecological value if the land is restored to a
natural condition; or
`(3) land that is incidental to land described in paragraph (1) or
(2), if the incidental land is determined by the Secretary to be necessary
for the efficient administration of an easement.
`SEC. 1238O. EASEMENTS AND AGREEMENTS.
`(a) IN GENERAL- To be eligible to enroll land in the program, the
owner of the land shall enter into an agreement with the Secretary--
`(1) if the agreement is for an easement--
`(A) to grant an easement that applies to the land to the
Secretary;
`(B) to create and record an appropriate deed restriction in
accordance with applicable State law to reflect the easement;
`(C) to provide a written statement of consent to the easement
signed by persons holding a security interest or any vested interest in
the land;
`(D) to provide proof of unencumbered title to the underlying fee
interest in the land that is the subject of the easement;
and
`(E) to comply with the terms of the easement and restoration
agreement; and
`(2) if the agreement is for a rental agreement described in section
1238N(b)(3)(C), that specifies the terms and conditions applicable
to--
`(B) the owner of the land.
`(b) TERMS OF EASEMENT OF RENTAL AGREEMENT- An easement or rental
agreement under subsection (a) shall--
`(A) grazing on the land in a manner that is consistent with
maintaining the viability of natural grass, shrub, forb, and wildlife
species indigenous to that locality;
`(B) haying (including haying for seed production) or mowing,
except during the nesting and brood-rearing seasons for birds in the area
that are in significant decline, as determined by the Natural Resources
Conservation Service State conservationist, or are protected Federal or
State law; and
`(C) fire rehabilitation, construction of fire breaks, and fences
(including placement of the posts necessary for fences);
`(A) the production of row crops, fruit trees, vineyards, or any
other agricultural commodity that requires breaking the soil surface;
and
`(B) except as permitted under paragraph (1)(C), the conduct of
any other activities that would disturb the surface of the land covered by
the easement, including--
`(3) include such additional provisions as the Secretary determines
are appropriate to carry out this subchapter or to facilitate the
administration of this subchapter.
`(c) EVALUATION AND RANKING OF EASEMENT AND RENTAL AGREEMENT
APPLICATIONS-
`(1) IN GENERAL- The Secretary, in conjunction with State technical
committees, shall establish criteria to evaluate and rank applications for
easements and rental agreements under this subchapter.
`(2) CRITERIA- In establishing the criteria, the Secretary shall
emphasize support for grazing operations, plant and animal biodiversity, and
grassland and land containing shrubs or forb under the greatest threat of
conversion.
`(d) RESTORATION AGREEMENTS-
`(1) IN GENERAL- The Secretary shall prescribe the terms of a
restoration agreement by which grassland and shrubland subject to an
easement or rental agreement entered into under the program shall be
restored.
`(2) REQUIREMENTS- The restoration agreement shall describe the
respective duties of the owner and the Secretary (including paying the share
of the cost of restoration provided by the Secretary and the provision of
technical assistance).
`(1) IN GENERAL- On the violation of the terms or conditions of an
easement, rental agreement, or restoration agreement entered into under this
section--
`(A) the easement or rental agreement shall remain in force;
and
`(B) the Secretary may require the owner to refund all or part of
any payments received by the owner under this subchapter, with interest on
the payments as determined appropriate by the Secretary.
`(2) PERIODIC INSPECTIONS-
`(A) IN GENERAL- After providing notice to the owner, the
Secretary shall conduct periodic inspections of land subject to easements
and rental agreements under this subchapter to ensure compliance with the
terms of the easement, rental agreement, and applicable restoration
agreement.
`(B) LIMITATION- The Secretary may not prohibit the owner, or a
representative of the owner, from being present during a periodic
inspection.
`SEC. 1238P. DUTIES OF SECRETARY.
`(a) IN GENERAL- In return for the granting of an easement, or the
execution of a rental agreement, by an owner under this subchapter, the
Secretary shall, in accordance with this section--
`(1) make easement or rental agreement payments;
`(2) pay a share of the cost of restoration; and
`(3) provide technical assistance to the owner.
`(A) AMOUNT- In return for the granting of an easement by an owner
under this subchapter, the Secretary shall make easement payments to the
owner in an amount equal to--
`(i) in the case of a permanent easement, the fair market value
of the land less the grazing value of the land encumbered by the
easement; and
`(ii) in the case of a 30-year easement or an easement for the
maximum duration allowed under applicable State law, 30 percent of the
fair market value of the land less the grazing value of the land for the
period during which the land is encumbered by the
easement.
`(B) SCHEDULE- Easement payments may be provided in not less than
1 payment nor more than 10 annual payments of equal or unequal amount, as
agreed to by the Secretary and the owner.
`(2) RENTAL AGREEMENT PAYMENTS-
`(A) AMOUNT- If an owner enters into a 30-year rental agreement
authorized under section 1238N(b)(3)(C), the Secretary shall make 30
annual rental payments to the owner in an amount that equals, to the
maximum extent practicable, the 30-year easement payment amount under
paragraph (1)(A)(ii).
`(B) ASSESSMENT- Not less than once every 5 years throughout the
30-year rental period, the Secretary shall assess whether the value of the
rental payments under subparagraph (A) equals, to the maximum extent
practicable, the total amount of 30-year easement payments as of the date
of the assessment.
`(C) ADJUSTMENT- If on completion of the assessment under
subparagraph (B), the Secretary determines that the rental payments do not
equal, to the maximum extent practicable, the value of payments under a
30-year easement, the Secretary shall adjust the amount of the remaining
payments to equal, to the maximum extent practicable, the value of a
30-year easement over the entire 30-year rental period.
`(c) COST OF RESTORATION- The Secretary shall make payments to the
owner of not more than 75 percent of the cost of carrying out measures and
practices necessary to restore grassland and shrubland functions and
values.
`(d) TECHNICAL ASSISTANCE- The Secretary shall provide owners with
technical assistance to execute easement documents and restore the grassland
and shrubland.
`(e) PAYMENTS TO OTHERS- If an owner that is entitled to a payment
under this subchapter dies, becomes incompetent, is otherwise unable to
receive the payment, or is succeeded by another person who renders or
completes the required performance, the Secretary shall make the payment, in
accordance with regulations promulgated by the Secretary and without regard to
any other provision of law, in such manner as the Secretary determines is fair
and reasonable in light of all the circumstances.
`(f) OTHER PAYMENTS- Easement or rental agreement payments received by
an owner under this subchapter shall be in addition to, and not affect, the
total amount of payments that the owner is otherwise eligible to receive under
other Federal laws (except for funds provided to achieve similar
purposes).
`(g) REGULATIONS- Not later than 180 days after the date of enactment
of this subchapter, the Secretary shall promulgate such regulations as are
necessary to carry out this subchapter.
`SEC. 1238Q. DELEGATION TO PRIVATE ORGANIZATIONS.
`(a) IN GENERAL- The Secretary may permit a private conservation or
land trust organization (referred to in this section as a `private
organization') or a State agency to hold and enforce an easement under this
subchapter, in lieu of the Secretary, subject to the right of the Secretary to
conduct periodic inspections and enforce the easement, if--
`(1) the Secretary determines that granting the permission will
promote grassland and shrubland protection;
`(2) the owner authorizes the private organization or State agency
to hold and enforce the easement; and
`(3) the private organization or State agency agrees to assume the
costs incurred in administering and enforcing the easement, including the
costs of restoration or rehabilitation of the land as specified by the owner
and the private organization or State agency.
`(b) APPLICATION- A private organization or State agency that seeks to
hold and enforce an easement under this subchapter shall apply to the
Secretary for approval.
`(c) APPROVAL BY SECRETARY- The Secretary may approve a private
organization to hold and enforce an easement under this subchapter if (as
determined by the Secretary) the private organization--
`(1)(A) is an organization described in section 501(c)(3) of the
Internal Revenue Code of 1986 that is exempt from taxation under section
501(a) of that Code; or
`(B) is described in section 509(a)(3), and is controlled by an
organization described in section 509(a)(2), of that Code;
`(2) has the relevant experience necessary to administer grassland
and shrubland easements;
`(3) has a charter that describes the commitment of the private
organization to conserving ranchland, agricultural land, or grassland for
grazing and conservation purposes; and
`(4) has the resources necessary to effectuate the purposes of the
charter.
`(1) IN GENERAL- If a private organization holding an easement on
land under this subchapter terminates, not later than 30 days after
termination of the private organization, the owner of the land shall
reassign the easement to--
`(A) a new private organization that is approved by the Secretary;
or
`(2) NOTIFICATION OF SECRETARY-
`(A) IN GENERAL- If the easement is reassigned to a new private
organization, not later than 60 days after the date of reassignment, the
owner and the new organization shall notify the Secretary in writing that
a reassignment for termination has been made.
`(B) FAILURE TO NOTIFY- If the owner and the new organization fail
to notify the Secretary of the reassignment in accordance with
subparagraph (A), the easement shall revert to the control of the
Secretary.'.
(b) FUNDING- Section 1241 of the Food Security Act of 1985 (16 U.S.C.
3841) (as amended by section 218(b)) is amended by adding at the end the
following:
`(e) GRASSLAND RESERVE PROGRAM- The Secretary shall use such sums of
the Commodity Credit Corporation as are necessary to carry out subchapter C of
chapter 2 (including the provision of technical assistance).'.
SEC. 220. STATE TECHNICAL COMMITTEES.
Subtitle G of title XII of the Food Security Act of 1985 (16 U.S.C.
3861 et seq.) is amended to read as follows:
`Subtitle G--State Technical Committees
`SEC. 1261. ESTABLISHMENT.
`(a) IN GENERAL- The Secretary shall establish in each State a
technical committee to assist the Secretary in the technical considerations
relating to implementation of any private land conservation program
administered by the Secretary.
`(b) STANDARDS- Not later than 180 days after the date of enactment of
the Agriculture, Conservation, and Rural Enhancement Act of 2002, the
Secretary shall develop standards to be used by each State technical committee
in the development of technical guidelines under section 1262(b) for the
implementation of the conservation programs under this title.
`(c) COMPOSITION- Each State technical committee established under
subsection (a) shall be composed of professional resource managers that
represent a variety of disciplines in the soil, water, wetland, forest, and
wildlife sciences, including representatives from among--
`(1) the Natural Resources Conservation Service (a representative of
which shall serve as Chair of the Committee);
`(2) the Farm Service Agency;
`(4) the Extension Service;
`(5) the Fish and Wildlife Service;
`(6) such State departments and agencies as the Secretary determines
to be appropriate, including--
`(A) a State fish and wildlife agency;
`(B) a State forester or equivalent State official;
`(C) a State water resources agency;
`(D) a State department of agriculture;
`(E) a State soil conservation agency;
`(F) a State association of soil and water conservation districts;
and
`(G) land grant colleges and universities;
`(7) other individuals or agency personnel with expertise in soil,
water, wetland, and wildlife or forest management as the Secretary
determines to be appropriate;
`(8) agricultural producers with demonstrable conservation
expertise;
`(9) nonprofit organizations with demonstrable conservation or
forestry expertise;
`(10) persons knowledgeable about conservation or forestry
techniques; and
`SEC. 1262. RESPONSIBILITIES.
`(A) IN GENERAL- Each State technical committee established under
section 1261 shall meet regularly to provide information, analyses, and
recommendations to the Secretary.
`(B) MANNER; FORM- Information, analyses, and recommendations
described in subparagraph (A) shall--
`(i) be provided in writing, in a manner that assists the
Secretary in determining matters of fact, technical merit, or scientific
question; and
`(ii) reflect the best professional information and judgment of
the committee.
`(2) COORDINATION- The Secretary shall coordinate activities
conducted under this section with activities conducted under section 1628 of
the Food, Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C.
5831).
`(3) PUBLIC PARTICIPATION- Each State technical committee
shall--
`(A) provide public notice of, and permit public attendance at,
meetings considering issues of concern related to any program under this
title; and
`(B) distribute meeting minutes to each person attending a meeting
described in subparagraph (A).
`(4) COMMUNICATION- Each State conservationist shall communicate
regularly with members of the State technical committee concerning status of
action on recommendations of the committee.
`(b) OTHER DUTIES- Each State technical committee shall provide
assistance and offer recommendations with respect to the technical aspects
of--
`(1) wetland protection, restoration, and mitigation
requirements;
`(2) criteria to be used in evaluating bids for enrollment of
environmentally-sensitive land in the conservation reserve program
established under subchapter B of chapter 1;
`(3) guidelines for haying or grazing and the control of weeds to
protect nesting wildlife on designated acreage relating to--
`(A) highly erodible land conservation under subtitle
B;
`(B) wetland conservation under subtitle C; or
`(C) other conservation requirements
`(4) addressing common weed and pest problems and programs to
control weeds and pests found on acreage enrolled in the conservation
reserve program;
`(5) guidelines for planting perennial cover for water quality and
wildlife habitat improvement on designated land;
`(6) establishing criteria and priorities for State initiatives
under the environmental quality incentives program under chapter 4 of
subtitle D;
`(7) establishing State and local conservation priorities under the
conservation security program under subchapter A of chapter 2 of subtitle
D;
`(8) establishing and maintaining natural resource indicators and
conservation program monitoring and evaluation systems;
`(9) developing conservation program education and outreach
activities;
`(10) evaluating innovative practices and systems under
consideration for inclusion in the field office technical guides;
and
`(11) other matters, as determined to be appropriate by the
Secretary.
`(1) IN GENERAL- Each State technical committee established under
section 1261 shall--
`(A) serve in an advisory capacity; and
`(B) have no implementation or enforcement
authority.
`(2) CONSIDERATION BY SECRETARY- In carrying out any program under
this title, the Secretary shall give strong consideration to the
recommendations of a State technical committee (including factual,
technical, or scientific findings and recommendations relating to areas in
which the State technical committee bears responsibility).
`(d) FACA REQUIREMENTS- A State technical committee established under
section 1261 shall be exempt from the Federal Advisory Committee Act (5 U.S.C.
App.).
`(e) ADVISORY SUBCOMMITTEES-
`(1) IN GENERAL- Any State or local work group, task force, or other
advisory body authorized by any Federal law (including a regulation) to
advise the Secretary on issues that are within the areas of responsibility
of a State technical committee established under section 1261 shall be
considered to be a subcommittee of the State technical committee.
`(2) COMPOSITION- A person eligible to serve on a State technical
committee under section 1261(c) shall also be eligible to serve on 1 or more
subcommittees of a State technical committee.
`(3) LOCAL WORKING GROUPS- A local working group shall be considered
to be a subcommittee of a State technical committee established under
section 1261.'.
SEC. 221. USE OF SYMBOLS, SLOGANS, AND LOGOS.
Section 356 of the Federal Agriculture Improvement Act of 1996 (16
U.S.C. 5801 et seq.) is amended--
(A) by redesignating paragraphs (4) through (7) as paragraphs (5)
through (8), respectively; and
(B) by inserting after paragraph (3) the following:
`(4) on the written approval of the Secretary, to use, license, or
transfer symbols, slogans, and logos of the Department;'; and
(2) in subsection (d), by adding at the end the
following:
`(3) USE OF SYMBOLS, SLOGANS, AND LOGOS-
`(A) IN GENERAL- The Secretary may authorize the Foundation to
use, license, or transfer symbols, slogans, and logos of the
Department.
`(i) IN GENERAL- All revenue received by the Foundation from the
use, licensing, or transfer of symbols, slogans, and logos of the
Department shall be transferred to the Secretary.
`(ii) CONSERVATION OPERATIONS- The Secretary shall transfer all
revenue received under clause (i) to the account within the Natural
Resources Conservation Service that is used to carry out conservation
operations.'.
Subtitle C--Organic Farming
SEC. 231. ORGANIC AGRICULTURE RESEARCH TRUST FUND.
(a) ESTABLISHMENT- There is established in the Treasury of the United
States a fund to be known as the `Organic Agriculture Research Trust Fund'
(referred to in this section as the `Fund'), consisting of--
(1) such amounts as are transferred to the Fund under subsection
(b); and
(2) any interest earned on investment of amounts in the Fund under
subsection (d).
(b) TRANSFER TO FUND- During fiscal year 2003, the Commodity Credit
Corporation shall transfer $45,000,000 to the Fund, which shall remain
available until expended.
(c) EXPENDITURES FROM FUND- On request by the Secretary of
Agriculture, the Secretary of the Treasury shall transfer from the Fund to the
Secretary of Agriculture such amounts as the Secretary of Agriculture
determines are necessary--
(1) to carry out section 1672B of the Food, Agriculture,
Conservation, and Trade Act of 1990 (7 U.S.C. 5925b); and
(2) for the board of trustees of the National Organic Research
Endowment Institute established under section 232(a) (referred to in this
subtitle as the `Institute') to implement a program of organic products
research designed by the Institute and approved by the Secretary.
(d) INVESTMENT OF AMOUNTS-
(A) INVESTMENT- The Secretary of the Treasury shall invest such
portion of the Fund as is not, in the judgment of the Secretary of the
Treasury, required to meet current withdrawals.
(B) TYPES OF INVESTMENTS- Investments may be made only
in--
(i) an obligation of the United States or an agency of the
United States;
(ii) a general obligation of a State or a political subdivision
of a State;
(iii) an interest-bearing account or certificate of deposit of a
bank that is a member of the Federal Reserve System; or
(iv) an obligation fully guaranteed as to principal and interest
by the United States.
(2) ACQUISITION OF OBLIGATIONS- For the purpose of investments under
paragraph (1), obligations may be acquired--
(A) on original issue at the issue price; or
(B) by purchase of outstanding obligations at the market
price.
(3) SALE OF OBLIGATIONS- Any obligation acquired by the Fund may be
sold by the Secretary of the Treasury at the market price.
(4) CREDITS TO FUND- The interest and dividends on, and the proceeds
from the sale or redemption of, any obligations, interest-bearing accounts,
or certificates of deposit held in the Fund shall be credited to and form a
part of the Fund.
SEC. 232. ESTABLISHMENT OF NATIONAL ORGANIC RESEARCH ENDOWMENT
INSTITUTE.
(a) IN GENERAL- The Secretary of Agriculture, in consultation with the
National Organic Standards Board, shall establish in the Department of
Agriculture an institute to be known as the `National Organic Research
Endowment Institute' (referred to in this section as the `Institute').
(1) IN GENERAL- The Institute shall be headed by a board of trustees
composed of producers and handlers of organically grown and processed
agricultural commodities appointed by the Secretary.
(2) GEOGRAPHIC REPRESENTATION- The membership of the Board of
Trustees shall reflect equally each of the various regions in the United
States in which organically grown and processed agricultural commodities are
produced.
(c) DUTIES- The duties of the Institute shall be to aid the
organically grown and processed agricultural commodities industry through the
development and implementation of a plan for organic products research
described in subsection (d)(1).
(d) IMPLEMENTATION OF PLAN-
(1) IN GENERAL- The board of trustees of the Institute shall
implement a plan for organic products research, to be carried out using
funds made available to the board of trustees of the Institute from the
Organic Agriculture Research Trust Fund established by section
231.
(2) EXPANSION OF MARKETS- In implementing the plan described in
paragraph (1), the board of trustees of the Institute shall provide a
permanent system for funding research activities (as defined in section
1672B of the Food, Agriculture, Conservation, and Trade Act of 1990 (7
U.S.C. 5925b).
(e) COMPENSATION OF MEMBERS- A member of the board of trustees of the
Institute shall serve without compensation.
(f) TRAVEL EXPENSES- To the extent recommended by the board of
trustees of the Institute and approved by the Secretary of Agriculture, a
member of the board shall be allowed travel expenses, including per diem in
lieu of subsistence, at rates authorized for an employee of an agency under
subchapter I of chapter 57 of title 5, United States Code, while away from the
home or regular place of business of the member in the performance of the
duties of the Institute.
Subtitle D--Regional Equity
SEC. 241. ALLOCATION OF CONSERVATION FUNDS BY STATE.
(1) IN GENERAL- To the maximum extent practicable, in each of fiscal
years 2002 through 2006, the Secretary of Agriculture (referred to in this
section as the `Secretary'), subject to requirements of the conservation
programs administered by the Secretary, shall ensure that each State
receives, at a minimum, the share of the funds made available under this
title (and amendments made by this title) that equals, at a minimum,
$12,000,000 for each State, for use in accordance with paragraph (2), for
purposes consistent with this title.
(2) USE OF FUNDS- Of the minimum amount made available to each State
under paragraph (1)--
(A) $5,000,000 shall be used in accordance with the environmental
quality incentives program under chapter 4 of subtitle D of title XII of
the Food Security Act of 1985 (16 U.S.C. 3839aa et seq.);
and
(B) $7,000,000 shall be used in accordance with other conservation
programs administered by the Secretary.
(3) UNUSED FUNDING- Any funds made available for a fiscal year under
paragraph (1) that are not obligated by April 1 of the fiscal year may be
used to carry out other activities under subtitle D of title XII of the Food
Security Act of 1985 (16 U.S.C. 3801 et seq.).
Subtitle E--Miscellaneous
SEC. 261. CRANBERRY ACREAGE RESERVE PROGRAM.
(a) DEFINITIONS- In this section:
(1) ELIGIBLE AREA- The term `eligible area' means a wetland or
buffer strip adjacent to a wetland that, as determined by the
Secretary--
(A)(i) is used, and has a history of being used, for the
cultivation of cranberries; or
(ii) is an integral component of a cranberry-growing
operation;
(B) is located in an environmentally sensitive area.
(2) SECRETARY- The term `Secretary' means the Secretary of
Agriculture.
(b) PROGRAM- The Secretary shall establish a program to purchase
permanent easements in eligible areas from willing sellers.
(c) PURCHASE PRICE- The Secretary shall ensure, to the maximum extent
practicable, that each easement purchased under this section is for an amount
that appropriately reflects the range of values for agricultural and
nonagricultural land in the region in which the eligible area subject to the
easement is located (including whether that land is located in 1 or more
environmentally sensitive areas, as determined by the Secretary).
(d) AUTHORIZATION OF APPROPRIATIONS- There is authorized to be
appropriated to carry out this section $10,000,000.
SEC. 262. KLAMATH BASIN.
(a) DEFINITIONS- In this section:
(1) SECRETARY- The term `Secretary' means the Secretary of
Agriculture.
(2) TASK FORCE- The term `Task Force' means the Klamath Basin
Interagency Task Force established under subsection (b).
(b) INTERAGENCY TASK FORCE-
(A) IN GENERAL- The Secretary of Agriculture, in conjunction with
the Secretary of the Interior, shall establish the Klamath Basin
Interagency Task Force.
(B) APPROVAL OF MEMBER- A decision of the Task Force that affects
any area under the jurisdiction of a member of the Task Force described in
paragraph (2) shall not be implemented without the consent of the
member.
(2) MEMBERSHIP- The Task Force shall include representatives
of--
(A) the Department of Agriculture, including--
(i) the Natural Resources Conservation Service;
and
(ii) the Farm Service Agency;
(B) the Department of the Interior, including--
(i) the United States Fish and Wildlife
Service;
(ii) the Bureau of Reclamation; and
(iii) the Bureau of Indian Affairs;
(C) the Department of Commerce, including the National Marine
Fisheries Service;
(D) the Council on Environmental Quality;
(E) the Federal Energy Regulatory Commission;
(F) the Environmental Protection Agency; and
(G) the United States Geological Survey.
(3) DUTIES- The Task Force shall use conservation programs of the
Department of Agriculture and other Federal programs in the Klamath Basin in
Oregon and California for the purposes of--
(A) promoting agricultural production and environmental quality as
compatible Klamath Basin goals;
(B) water conservation and improved agricultural
practices;
(C) aquatic ecosystem restoration;
(D) improvement of water quality and quantity;
(E) recovery and enhancement of endangered species, including
anadromous fish species and resident fish species; and
(F) restoration of the national wildlife refuges.
(4) COOPERATIVE AGREEMENT- The Secretary of Agriculture, Secretary
of the Interior, and Secretary of Commerce shall enter into a cooperative
agreement to--
(A) provide funding to the Task Force; and
(B) use conservation programs administered by the Secretary of
Agriculture and other Federal programs administered by the Secretary of
the Interior and Secretary of Commerce in carrying out the purposes
described in paragraph (3).
(A) IN GENERAL- The Task Force shall establish a grant program
(including appropriate cost-sharing, monitoring, and enforcement
requirements) under which the Secretary of Agriculture, the Secretary of
the Interior, or the Secretary of Commerce may enter into 1 or more
agreements or contracts with non-Federal entities, Indian tribes (as
defined in section 4 of the Indian Self-Determination and Education
Assistance Act (25 U.S.C. 450b)), environmental organizations, and water
districts in the Klamath Basin to carry out the purposes described in
paragraph (3).
(B) CONTRACT TERMS- An agreement or contract under subparagraph
(A) shall--
(i) specify the responsibilities of the entity and the Secretary
under the agreement or contract;
(ii) provide for such cost-sharing as the Secretary considers
appropriate; and
(iii) include mechanisms for monitoring and enforcement
requirements.
(A) REPORT- Not later than 180 days after the date of enactment of
this Act, the Task Force, after soliciting input from the States of
California and Oregon, local public agencies, Indian tribes, Klamath
Project districts, environmental organizations, and the stakeholder
community, shall issue a report that--
(i) considers the impacts of the biological assessment, the
biological opinion, activities of the Upper Klamath Basin Working Group,
activities of the Pacific Fisheries Restoration Task Force, State water
adjudications, and the resolution of tribal rights, that may affect
actions of the Task Force; and
(ii) includes a description of Federal spending in the Klamath
Basin for fiscal years 2000, 2001, and 2002.
(B) DRAFT PLAN- Not later than 60 days after completion of the
report under subparagraph (A), the Task Force shall develop, and provide
public notice of and an opportunity for comment on, a draft 5-year plan to
perform the duties of the Task Force under subsection
(b)(3).
(C) FINAL PLAN- Not later than 1 year after the date of enactment
of this Act, the Task Force shall finalize the plan described in
subparagraph (B).
(2) MATTERS TO BE CONSIDERED- In developing the plan under paragraph
(1), the Task Force shall consider--
(A) the use of water conservation easements by voluntary
participants;
(B) purchase of agricultural land from willing sellers, with
priority given to land that will enhance natural water storage
capabilities;
(C) benefits to the agricultural economy through incentives for
the use of irrigation efficiency, water conservation, or other
agricultural practices;
(E) feasibility studies for alternative water storage, water
conservation, demand reduction, and restoration of endangered
species;
(F) improvement of upper Klamath Basin watershed and water
quality;
(G) improvement of habitat in the Tule Lake National Wildlife
Refuge, the Lower Klamath National Wildlife Refuge, and the Upper Klamath
Lake National Wildlife Refuge; and
(H) fish screening and water metering.
(d) COOPERATION WITH NON-FEDERAL ENTITIES- In carrying out the duties
of the Task Force under this section, the Task Force shall--
(A) environmental, fishing, and agricultural interests;
and
(B) on a government-to-government basis, the Klamath, Hoopa,
Yurok, and Karuk Tribes;
(2) provide appropriate opportunities for public participation;
and
(3) hold meetings at least once every 3 months in the Klamath Basin
with opportunities for stakeholder participation.
(1) IN GENERAL- To carry out the purposes described in subsection
(b)(3), the Secretary shall use $175,000,000 of the funds of the Commodity
Credit Corporation for the period of fiscal years 2003 through 2006, of
which--
(A) $15,000,000 shall be made available to the Klamath, Hoopa,
Yurok, and Karuk Tribes for use in the State of California;
and
(B) $15,000,000 shall be made available to those Tribes for use in
the State of Oregon.
(2) FUNDS MADE AVAILABLE TO THE TRIBES-
(A) IN GENERAL- The funds made available to the Tribes under
paragraph (1) shall be for projects for specific habitat improvement
related to the recovery of threatened and endangered species to be carried
out by the appropriate tribal natural resources department, consistent
with the purposes of this section.
(B) REPORTS- The Tribes shall provide a biennial report to the
Task Force on expenditures of funds during the period covered by the
report.
(3) OTHER FUNDS- The funds made available under paragraph (1) shall
be in addition to funds available to the States of California and Oregon
under other provisions of this Act (including amendments made by this
Act).
(4) UNUSED FUNDING- Any funds made available for a fiscal year under
paragraph (1) that are not obligated by April 1, 2006, may be used to carry
out other activities under subtitle D of title XII of the Food Security Act
of 1985 (16 U.S.C. 3801 et seq.).
(5) EXPIRATION OF AUTHORITY TO OBLIGATE FUNDS- The Secretary may not
obligate funds made available under this subsection after September 30,
2006.
(f) SAVINGS PROVISION- Nothing in this section regarding the Klamath
Basin affects any right or obligation of any party under any treaty or any
other provision of Federal or State law.
(g) COOPERATIVE AGREEMENTS- Notwithstanding the Federal Grant and
Cooperative Agreement Act of 1977 (41 U.S.C. 501 et seq.), the Secretary may
enter into cooperative agreements under this section.
TITLE III--TRADE
Subtitle A--Agricultural Trade Development and Assistance Act of
1954 and Related Statutes
SEC. 301. UNITED STATES POLICY.
Section 2(2) of the Agricultural Trade Development and Assistance Act
of 1954 (7 U.S.C. 1691(2)) is amended by inserting before the semicolon at the
end the following: `and conflict prevention'.
SEC. 302. PROVISION OF AGRICULTURAL COMMODITIES.
Section 202 of the Agricultural Trade Development and Assistance Act
of 1954 (7 U.S.C. 1722) is amended--
(1) in subsection (b), by adding at the end the
following:
`(3) PROGRAM DIVERSITY- The Administrator shall--
`(A) encourage eligible organizations to propose and implement
program plans to address 1 or more aspects of the program under section
201; and
`(B) consider proposals that incorporate a variety of program
objectives and strategic plans based on the identification by eligible
organizations of appropriate activities to assist development in foreign
countries.';
(2) in subsection (e)(1), by striking `not less than $10,000,000,
and not more than $28,000,000,' and inserting `not less than 5 percent nor
more than 10 percent of the funds'; and
(3) by adding at the end the following:
`(h) CERTIFIED INSTITUTIONAL PARTNERS-
`(1) IN GENERAL- The Administrator or the Secretary, as applicable,
shall promulgate regulations and issue guidelines to permit private
voluntary organizations and cooperatives to be certified as institutional
partners.
`(2) REQUIREMENTS- To become a certified institutional partner, a
private voluntary organization or cooperative shall submit to the
Administrator evidence of organizational capacity that
describes--
`(A) the financial, programmatic, commodity management, and
auditing abilities and practices of the organization or cooperative;
and
`(B) the capacity of the organization or cooperative to carry out
projects in particular countries.
`(3) MULTI-COUNTRY PROPOSALS- A certified institutional partner
shall be eligible to--
`(A) submit a single proposal for 1 or more countries in which the
certified institutional partner has already demonstrated organizational
capacity; and
`(B) receive expedited review of the proposal.'.
SEC. 303. GENERATION AND USE OF CURRENCIES BY PRIVATE VOLUNTARY
ORGANIZATIONS AND COOPERATIVES.
Section 203 of the Agricultural Trade Development and Assistance Act
of 1954 (7 U.S.C. 1723) is amended--
(1) in the section heading, by striking `foreign';
(2) in subsection (a), by striking `the recipient country, or in a
country' and inserting `1 or more recipient countries, or 1 or more
countries';
(A) by striking `in recipient countries, or in countries' and
inserting `1 or more recipient countries, or in 1 or more countries';
and
(B) by striking `foreign currency';
(A) by striking `foreign currency'; and
(B) by striking `the recipient country, or in a country' and
inserting `1 or more recipient countries, or in 1 or more countries';
and
(A) by striking `Foreign currencies' and inserting
`Proceeds';
(i) by striking `income generating' and inserting
`income-generating'; and
(ii) by striking `the recipient country or within a country' and
inserting `1 or more recipient countries or within 1 or more countries';
and
(i) by inserting a comma after `invested'; and
(ii) by inserting a comma after `used'.
SEC. 304. LEVELS OF ASSISTANCE.
Section 204 of the Agricultural Trade Development and Assistance Act
of 1954 (7 U.S.C. 1724) is amended--
(A) in paragraph (1), by striking `that for each of fiscal years
1996 through 2002 is not less than 2,025,000 metric tons.' and inserting
`that is not less than--
`(A) 2,100,000 metric tons for fiscal year 2002;
`(B) 2,200,000 metric tons for fiscal year 2003;
`(C) 2,300,000 metric tons for fiscal year 2004;
`(D) 2,400,000 metric tons for fiscal year 2005; and
`(E) 2,500,000 metric tons for fiscal year 2006.';
and
(B) in paragraph (2), by striking `1996 through 2002' and
inserting `2002 through 2006'; and
(2) in subsection (b)(1), by inserting `(including crude degummed
soybean oil)' after `bagged commodities'.
SEC. 305. FOOD AID CONSULTATIVE GROUP.
Section 205(f) of the Agricultural Trade Development and Assistance
Act of 1954 (7 U.S.C. 1725(f)) is amended by striking `2002' and inserting
`2006'.
SEC. 306. MAXIMUM LEVEL OF EXPENDITURES.
Section 206(a) of the Agricultural Trade Development and Assistance
Act of 1954 (7 U.S.C. 1726(a)) is amended by striking `$1,000,000,000' and
inserting `$2,000,000,000'.
SEC. 307. ADMINISTRATION.
Section 207 of the Agricultural Trade Development and Assistance Act
of 1954 (7 U.S.C. 1726a) is amended--
(A) by redesignating paragraph (2) as paragraph (3);
and
(B) by striking paragraph (1) and inserting the
following:
`(1) RECIPIENT COUNTRIES- A proposal to enter into a nonemergency
food assistance agreement under this title shall identify the recipient
country or countries that are the subject of the agreement.
`(2) TIMING- Not later than 120 days after the date of submission to
the Administrator of a proposal submitted by an eligible organization under
this title, the Administrator shall determine whether to accept the
proposal.';
(2) in subsection (b), by striking `guideline' each place it appears
and inserting `guideline or policy determination'; and
(3) by adding at the end the following:
`(1) IN GENERAL- The Administrator shall finalize program agreements
and resource requests for programs under this section before the beginning
of each fiscal year.
`(2) REPORT- Not later than December 1 of each year, the
Administrator shall submit to the Committee on Agriculture and the Committee
on International Relations of the House of Representatives and the Committee
on Agriculture, Nutrition, and Forestry of the Senate a report that
contains--
`(A) a list of programs, countries, and commodities approved to
date for assistance under this section; and
`(B) a statement of the total amount of funds approved to date for
transportation and administrative costs under this section.
`(f) DIRECT DELIVERY- In addition to practices in effect on the date
of enactment of this subsection, the Secretary may approve an agreement that
provides for direct delivery of agricultural commodities to milling or
processing facilities more than 50 percent of the interest in which is owned
by United States citizens in foreign countries, with the proceeds of
transactions transferred in cash to eligible organizations described in
section 202(d) to carry out approved projects.'.
SEC. 308. ASSISTANCE FOR STOCKPILING AND RAPID TRANSPORTATION, DELIVERY,
AND DISTRIBUTION OF SHELF-STABLE PREPACKAGED FOODS.
Section 208(f) of the Agricultural Trade Development and Assistance
Act of 1954 (7 U.S.C. 1726b(f)) is amended by striking `and 2002' and
inserting `through 2006'.
SEC. 309. PILOT EMERGENCY RELIEF PROGRAM TO PROVIDE LIVE LAMB TO
AFGHANISTAN.
Title II of the Agricultural Trade Development and Assistance Act of
1954 (7 U.S.C. 1721 et seq.) is amended by adding at the end the
following:
`SEC. 209. PILOT EMERGENCY RELIEF PROGRAM TO PROVIDE LIVE LAMB TO
AFGHANISTAN.
`(a) IN GENERAL- The President may establish a pilot emergency relief
program under this title to provide live lamb to Afghanistan on behalf of the
people of the United States.
`(b) REPORT- Not later than January 1, 2004, the Secretary shall
submit to Congress a report that--
`(1)(A) evaluates the success of the program under subsection (a);
or
`(B) if the program has not succeeded or has not been implemented,
explains in detail why the program has not succeeded or has not been
implemented; and
`(2) discusses the feasibility and desirability of providing
assistance in the form of live animals.'.
SEC. 310. SALE PROCEDURE.
Section 403 of the Agricultural Trade Development and Assistance Act
of 1954 (7 U.S.C. 1733) is amended--
(A) by striking `The Secretary' and inserting the
following:
`(1) IN GENERAL- In carrying out this Act, the Secretary';
and
(B) by adding at the end the following:
`(2) CURRENCIES- Sales of commodities described in paragraph (1) may
be in United States dollars or in a different currency.';
(A) by striking `In carrying' and inserting the
following:
`(1) IN GENERAL- In carrying'; and
(B) by adding at the end the following:
`(2) SALE PRICE- Sales of commodities described in paragraph (1)
shall be made at a reasonable market price in the economy where the
commodity is to be sold, as determined by the Secretary or the
Administrator, as appropriate.'; and
(3) by adding at the end the following:
`(l) SALE PROCEDURE- Subsections (b)(2) and (e)(2) shall apply to
sales of commodities in recipient countries to generate proceeds to carry out
projects under--
`(1) section 416(b) of the Agricultural Act of 1949 (7 U.S.C.
1431(b)); and
`(2) title VIII of the Agricultural Trade Act of 1978.'.
SEC. 311. PREPOSITIONING.
Section 407(c)(4) of the Agricultural Trade Development and Assistance
Act of 1954 (7 U.S.C. 1736a(c)(4)) is amended by striking `and 2002' and
inserting `through 2006'.
SEC. 312. EXPIRATION DATE.
Section 408 of the Agricultural Trade Development and Assistance Act
of 1954 (7 U.S.C. 1736b) is amended by striking `2002' and inserting
`2006'.
SEC. 313. MICRONUTRIENT FORTIFICATION PROGRAM.
Section 415 of the Agricultural Trade Development and Assistance Act
of 1954 (7 U.S.C. 1736g-2) is amended--
(A) in the first sentence, by striking `a micronutrient
fortification pilot program' and inserting `micronutrient fortification
programs'; and
(B) in the second sentence--
(i) by striking `the program' and inserting `a
program';
(ii) in paragraph (1), by striking `and' at the
end;
(I) by striking `whole'; and
(II) by striking the period at the end and inserting `; and';
and
(iv) by adding at the end the following:
`(3) encourage technologies and systems for the improved quality and
safety of fortified grains and other commodities that are readily
transferable to developing countries.';
(2) in the first sentence of subsection (c)--
(A) by striking `the pilot program, whole' and inserting `a
program,';
(B) by striking `the pilot program may' and inserting `a program
may'; and
(C) by striking `including' and inserting `such as';
and
(3) in subsection (d), by striking `2002' and inserting
`2006'.
SEC. 314. JOHN OGONOWSKI FARMER-TO-FARMER PROGRAM.
Section 501(c) of the Agricultural Trade Development and Assistance
Act of 1954 (7 U.S.C. 1737(c)) is amended--
(1) by striking `0.4' and inserting `0.5,'; and
(2) by striking `2002' and inserting `2006'.
Subtitle B--Agricultural Trade Act of 1978
SEC. 321. EXPORT CREDIT GUARANTEE PROGRAM.
(a) TERM OF SUPPLIER CREDIT PROGRAM- Section 202(a)(2) of the
Agricultural Trade Act of 1978 (7 U.S.C. 5622(a)(2)) is amended by striking
`180 days' and inserting `12 months'.
(b) PROCESSED AND HIGH-VALUE PRODUCTS- Section 202(k)(1) of the
Agricultural Trade Act of 1978 (7 U.S.C. 5622(k)(1)) is amended by striking `,
2001, and 2002' and inserting `through 2006'.
(c) REPORT- Section 202 of the Agricultural Trade Act of 1978 (7
U.S.C. 5622) is amended by adding at the end the following:
`(l) REPORT ON AGRICULTURAL EXPORT CREDIT PROGRAMS-
`(1) IN GENERAL- Not later than 1 year after the date of enactment
of this subsection, and annually thereafter, the Secretary shall submit to
the Committee on Agriculture and the Committee on International Relations of
the House of Representatives and the Committee on Agriculture, Nutrition and
Forestry of the Senate a report on the status of multilateral negotiations
regarding agricultural export credit programs at the World Trade
Organization and the Organization of Economic Cooperation and Development in
fulfillment of Article 10.2 of the Agreement on Agriculture (as described in
section 101(d)(2) of the Uruguay Round Agreements Act (19 U.S.C.
3511(d)(2))).
`(2) CLASSIFIED INFORMATION- The report under paragraph (1) shall be
submitted in unclassified form, but may contain a classified
annex.'.
(d) REAUTHORIZATION- Section 211(b)(1) of the Agricultural Trade Act
of 1978 (7 U.S.C. 5641(b)(1)) is amended by striking `2002' and inserting
`2006'.
SEC. 322. MARKET ACCESS PROGRAM.
(a) IN GENERAL- Section 211(c) of the Agricultural Trade Act of 1978
(7 U.S.C. 5641(c)) is amended--
(1) by redesignating paragraphs (1) and (2) as subparagraphs (A) and
(B), respectively, and indenting appropriately;
(2) by striking `The Commodity' and inserting the
following:
`(1) IN GENERAL- The Commodity';
(3) by striking subparagraph (A) (as so redesignated) and inserting
the following:
`(A) in addition to any funds that may be specifically
appropriated to implement a market access program, not more than
$100,000,000 for fiscal year 2002, $120,000,000 for fiscal year 2003,
$140,000,000 for fiscal year 2004, $180,000,000 for fiscal year 2005, and
$200,000,000 for fiscal year 2006, of the funds of, or an equal value of
commodities owned by, the Commodity Credit Corporation, except that this
paragraph shall not apply to section 203(h); and'; and
(4) by adding at the end the following:
`(2) PROGRAM PRIORITIES- Of funds made available under paragraph
(1)(A) in excess of $90,000,000 for any fiscal year, priority shall be given
to proposals--
`(A) made by eligible trade organizations that have never
participated in the market access program under this title;
or
`(B) for market access programs in emerging
markets.'.
(b) UNITED STATES QUALITY EXPORT INITIATIVE-
(1) FINDINGS- Congress finds that--
(A) the market access program established under section 203 of the
Agricultural Trade Act of 1978 (7 U.S.C. 5623) and foreign market
development cooperator program established under title VII of that Act (7
U.S.C. 5721 et seq.) target generic and value-added agricultural products,
with little emphasis on the high quality of United States agricultural
products; and
(B) new promotional tools are needed to enable United States
agricultural products to compete in higher margin, international markets
on the basis of quality.
(2) INITIATIVE- Section 203 of the Agricultural Trade Act of 1978 (7
U.S.C. 5623) is amended by adding at the end the following:
`(h) UNITED STATES QUALITY EXPORT INITIATIVE-
`(1) IN GENERAL- Subject to the availability of appropriations,
using the authorities under this section, the Secretary shall establish a
program under which, on a competitive basis, using practical and objective
criteria, several agricultural products are selected to carry the `U.S.
Quality' seal.
`(2) PROMOTIONAL ACTIVITIES- Agricultural products selected under
paragraph (1) shall be promoted using the `U.S. Quality' seal at trade fairs
in key markets through electronic and print media.
`(3) AUTHORIZATION OF APPROPRIATIONS- There are authorized to be
appropriated such sums as are necessary to carry out this
subsection.'.
SEC. 323. EXPORT ENHANCEMENT PROGRAM.
(a) IN GENERAL- Section 301(e)(1)(G) of the Agricultural Trade Act of
1978 (7 U.S.C. 5651(e)(1)(G)) is amended by striking `fiscal year 2002' and
inserting `each of fiscal years 2002 through 2006'.
(b) UNFAIR TRADE PRACTICES- Section 102(5)(A) of the Agricultural
Trade Act of 1978 (7 U.S.C. 5602(5)(A)) is amended--
(1) in clause (i), by striking `or' at the end;
(2) in clause (ii), by striking the period at the end and inserting
`, including, in the case of a state trading enterprise engaged in the
export of an agricultural commodity, pricing practices that are not
consistent with sound commercial practices conducted in the ordinary course
of trade; or'; and
(3) by adding at the end the following:
`(iii) changes United States export terms of trade through a
deliberate change in the dollar exchange rate of a competing
exporter.'.
SEC. 324. FOREIGN MARKET DEVELOPMENT COOPERATOR PROGRAM.
Section 703 of the Agricultural Trade Act of 1978 (7 U.S.C. 5723) is
amended to read as follows:
`SEC. 703. FUNDING.
`(a) IN GENERAL- To carry out this title, the Secretary shall use
funds of the Commodity Credit Corporation, or commodities of the Commodity
Credit Corporation of a comparable value, in the following amounts:
`(1) For fiscal year 2002, $37,500,000.
`(2) For fiscal year 2003, $40,000,000.
`(3) For fiscal year 2004 and each subsequent fiscal year,
$42,500,000.
`(b) PROGRAM PRIORITIES- Of funds or commodities provided under
subsection (a) in excess of $35,000,000 for any fiscal year, priority shall be
given to proposals--
`(1) made by eligible trade organizations that have never
participated in the program established under this title; or
`(2) for programs established under this title in emerging
markets.'.
SEC. 325. FOOD FOR PROGRESS AND EDUCATION PROGRAMS.
(a) IN GENERAL- The Agricultural Trade Act of 1978 (7 U.S.C. 5601 et
seq.) is amended by adding at the end the following:
`TITLE VIII--FOOD FOR PROGRESS AND EDUCATION
PROGRAMS
`SEC. 801. DEFINITIONS.
`(1) COOPERATIVE- The term `cooperative' means a private sector
organization the members of which--
`(A) own and control the organization;
`(B) share in the profits of the organization; and
`(C) are provided services (such as business services and outreach
in cooperative development) by the organization.
`(2) CORPORATION- The term `Corporation' means the Commodity Credit
Corporation.
`(3) DEVELOPING COUNTRY- The term `developing country' means a
foreign country that has--
`(A) a shortage of foreign exchange earnings; and
`(B) difficulty meeting all of the food needs of the country
through commercial channels and domestic production.
`(4) ELIGIBLE COMMODITY- The term `eligible commodity' means an
agricultural commodity (including vitamins and minerals) acquired by the
Secretary or the Corporation for disposition in a program authorized under
this title through--
`(A) commercial purchases; or
`(B) inventories of the Corporation.
`(5) ELIGIBLE ORGANIZATION- The term `eligible organization' means a
private voluntary organization, cooperative, nongovernmental organization,
or foreign country, as determined by the Secretary.
`(6) EMERGING AGRICULTURAL COUNTRY- The term `emerging agricultural
country' means a foreign country that--
`(A) is an emerging democracy; and
`(B) has made a commitment to introduce or expand free enterprise
elements in the agricultural economy of the country.
`(7) FOOD SECURITY- The term `food security' means access by all
people at all times to sufficient food and nutrition for a healthy and
productive life.
`(8) NONGOVERNMENTAL ORGANIZATION-
`(A) IN GENERAL- The term `nongovernmental organization' means an
organization that operates on a local level to solve development problems
in a foreign country in which the organization is located.
`(B) EXCLUSION- The term `nongovernmental organization' does not
include an organization that is primarily an agency or instrumentality of
the government of a foreign country.
`(9) PRIVATE VOLUNTARY ORGANIZATION- The term `private voluntary
organization' means a nonprofit, nongovernmental organization
that--
`(i) funds from private sources; and
`(ii) voluntary contributions of funds, staff time, or in-kind
support from the public;
`(B) is engaged in or is planning to engage in nonreligious
voluntary, charitable, or development assistance activities;
and
`(C) in the case of an organization that is organized under the
laws of the United States or a State, is an organization described in
section 501(c)(3) of the Internal Revenue Code of 1986 that is exempt from
taxation under section 501(a) of that Code.
`(10) PROGRAM- The term `program' means a food or nutrition
assistance or development initiative proposed by an eligible organization
and approved by the Secretary under this title.
`(11) RECIPIENT COUNTRY- The term `recipient country' means an
emerging agricultural country that receives assistance under a
program.
`SEC. 802. FOOD FOR PROGRESS AND EDUCATION PROGRAMS.
`(a) IN GENERAL- There are established the Food for Progress Program
and the International Food for Education and Nutrition Program through which
eligible commodities are made available to eligible organizations to carry out
programs of assistance in developing countries.
`(b) FOOD FOR PROGRESS PROGRAM-
`(1) IN GENERAL- To provide agricultural commodities to support the
introduction or expansion of free trade enterprises in national economies
and to promote food security in recipient countries, the Secretary shall
establish the Food for Progress Program, under which the Secretary may enter
into agreements (including multiyear agreements and agreements for programs
in more than 1 country) with entities described in paragraph (2).
`(2) ENTITIES- The Secretary may enter into agreements under
paragraph (1) with--
`(A) the governments of emerging agricultural
countries;
`(B) private voluntary organizations;
`(C) nonprofit agricultural organizations and
cooperatives;
`(D) nongovernmental organizations; and
`(E) other private entities.
`(3) CONSIDERATIONS- In determining whether to enter into an
agreement to establish a program under paragraph (1), the Secretary shall
take into consideration whether an emerging agricultural country is
committed to carrying out, or is carrying out, policies that
promote--
`(B) private production of food commodities for domestic
consumption; and
`(C) the creation and expansion of efficient domestic markets for
the purchase and sale of those commodities.
`(c) INTERNATIONAL FOOD FOR EDUCATION AND NUTRITION PROGRAM-
`(1) IN GENERAL- In cooperation with other countries, the Secretary
shall establish an initiative under this title to be known as the
`International Food for Education and Nutrition Program', through which the
Secretary may provide to eligible organizations agricultural commodities and
technical and nutritional assistance in connection with education programs
to improve food security and enhance educational opportunities for preschool
age and primary school age children in recipient countries.
`(2) AGREEMENTS- In carrying out this subsection, the
Secretary--
`(A) shall administer the programs under this subsection in manner
that is consistent with this title; and
`(B) may enter into agreements with eligible
organizations--
`(i) to purchase, acquire, and donate eligible commodities to
eligible organizations to carry out agreements in recipient countries;
and
`(ii) to provide technical and nutritional assistance to carry
out agreements in recipient countries.
`(3) OTHER DONOR COUNTRIES- The Secretary shall encourage other
donor countries, directly or through eligible organizations--
`(A) to donate goods and funds to recipient countries;
and
`(B) to provide technical and nutritional assistance to recipient
countries.
`(4) PRIVATE SECTOR- The President and the Secretary are urged to
encourage the support and active involvement of the private sector,
foundations, and other individuals and organizations in programs and
activities assisted under this subsection.
`(5) GRADUATION- An agreement with an eligible organization under
this subsection shall include provisions--
`(A)(i) to sustain the benefits to the education, enrollment, and
attendance of children in schools in the targeted communities when the
provision of commodities and assistance to a recipient country under the
program under this subsection terminates; and
`(ii) to estimate the period of time required until the recipient
country or eligible organization is able to provide sufficient assistance
without additional assistance under this subsection; or
`(B) to provide other long-term benefits to targeted populations
of the recipient country.
`(6) ELIGIBLE COSTS- Subject to paragraphs (2) and (7), the
Secretary shall pay all or part of--
`(A) the costs and charges described in paragraphs (1) through (5)
and (7) of section 406(b) of the Agricultural Trade Development and
Assistance Act of 1954 (7 U.S.C. 1736(b)) with respect to an eligible
commodity;
`(B) the internal transportation, storage, and handling costs
incurred in moving the eligible commodity, if the Secretary determines
that--
`(i) payment of the costs is appropriate; and
`(ii) the recipient country is a low income, net food-importing
country that--
`(I) meets the poverty criteria established by the
International Bank for Reconstruction and Development for Civil Works
Preference; and
`(II) has a national government that is committed to or is
working toward, through a national action plan, the World Declaration
on Education for All convened in 1990 in Jomtien, Thailand, and the
followup Dakar Framework for Action of the World Education Forum in
2000; and
`(C) the projected costs of an eligible organization for
administration, sales, monitoring, and technical assistance under an
agreement under paragraph (2) (including an itemized budget), taking into
consideration, as determined by the Secretary--
`(i) the projected amount of such costs itemized by category;
and
`(ii) the projected amount of assistance to be received from
other donors.
`(A) COMMODITY CREDIT CORPORATION-
`(i) IN GENERAL- Subject to clause (ii), the Secretary may use
the funds, facilities, and authorities of the Corporation to carry out
this subsection.
`(ii) LIMITATION- Not more than $150,000,000 for each of fiscal
years 2002 through 2005 shall be used to carry out this
subsection.
`(B) USE LIMITATIONS- Of the funds made available under
subparagraph (A), the Secretary may use to carry out paragraph (6)(C) not
more than $20,000,000 for each of fiscal years 2002 through
2005.
`(C) REALLOCATION- Funds not allocated under this subsection by
April 30 of a fiscal year shall be made available for proposals submitted
under the Food for Progress Program under subsection (b).
`(8) ANNUAL REPORT- The Secretary shall submit to the Committee on
Agriculture of the House of Representatives and the Committee on
Agriculture, Nutrition, and Forestry of the Senate an annual report that
describes--
`(A) the results of the implementation of this subsection during
the year covered by the report, including the impact on the enrollment,
attendance, and performance of children in preschools and primary schools
targeted under the program under this subsection; and
`(B) the level of commitments by, and the potential for obtaining
additional goods and assistance from, other countries for subsequent
years.
`(1) IN GENERAL- The Secretary may provide agricultural commodities
under this title on--
`(B) subject to paragraph (2), credit terms.
`(2) CREDIT TERMS- Payment for agricultural commodities made
available under this title that are purchased on credit terms shall be made
on the same basis as payments made under section 103 of the Agricultural
Trade Development and Assistance Act of 1954 (7 U.S.C. 1703).
`(3) NO EFFECT ON DOMESTIC PROGRAMS- The Secretary shall not make an
agricultural commodity available for disposition under this section in any
amount that will reduce the amount of the commodity that is traditionally
made available through donations to domestic feeding programs or agencies,
as determined by the Secretary.
`(4) MULTIYEAR AGREEMENTS- In carrying out this title, on request
and subject to the availability of commodities, the Secretary is encouraged
to approve agreements that provide for commodities to be made available for
distribution on a multiyear basis, if the agreements otherwise meet the
requirements of this title.
`(e) REPORTS- Each eligible organization that enters into an agreement
under this title shall submit to the Secretary, at such time as the Secretary
may request, a report containing such information as the Secretary may request
relating to the use of agricultural commodities and funds provided to the
eligible organization under this title.
`(f) COORDINATION- To ensure that the provision of commodities under
this section is coordinated with and complements other foreign assistance
provided by the United States, assistance under this section shall be
coordinated through the mechanism designated by the President to coordinate
assistance under the Agricultural Trade Development and Assistance Act of 1954
(7 U.S.C. 1691 et seq.).
`(1) IN GENERAL- The Secretary shall ensure, to the maximum extent
practicable, that each eligible organization participating in 1 or more
programs under this section--
`(A) uses eligible commodities made available under this
title--
`(i) in an effective manner;
`(ii) in the areas of greatest need; and
`(iii) in a manner that promotes the purposes of this
title;
`(B) in using eligible commodities, assesses and takes into
account the needs of recipient countries and the target populations of the
recipient countries;
`(C) works with recipient countries, and indigenous institutions
or groups in recipient countries, to design and carry out mutually
acceptable programs authorized under this title;
`(D) monitors and reports on the distribution or sale of eligible
commodities provided under this title using methods that, as determined by
the Secretary, facilitate accurate and timely reporting;
`(E) periodically evaluates the effectiveness of the program of
the eligible organization, including, as applicable, an evaluation of
whether the development or food and nutrition purposes of the program can
be sustained in a recipient country if the assistance provided to the
recipient country is reduced and eventually terminated; and
`(F) considers means of improving the operation of the program of
the eligible organization.
`(2) CERTIFIED INSTITUTIONAL PARTNERS-
`(A) IN GENERAL- The Secretary shall promulgate regulations and
guidelines to permit private voluntary organizations and cooperatives to
be certified as institutional partners.
`(B) REQUIREMENTS- To become a certified institutional partner, a
private voluntary organization or cooperative shall submit to the
Secretary evidence of organizational capacity that
describes--
`(i) the financial, programmatic, commodity management, and
auditing abilities and practices of the organization or cooperative;
and
`(ii) the capacity of the organization or cooperative to carry
out projects in particular countries.
`(C) MULTICOUNTRY PROPOSALS- A certified institutional partner
shall be eligible to--
`(i) submit a single proposal for 1 or more countries in which
the certified institutional partner has already demonstrated
organizational capacity; and
`(ii) receive expedited review of the proposal.
`(h) TRANSSHIPMENT AND RESALE-
`(1) IN GENERAL- The transshipment or resale of an eligible
commodity to a country other than a recipient country shall be prohibited
unless the transshipment or resale is approved by the Secretary.
`(A) IN GENERAL- Subject to subparagraphs (B) through (D), an
eligible commodity provided under this section may be sold for foreign
currency or United States dollars or bartered, with the approval of the
Secretary.
`(B) SALE OR BARTER OF FOOD ASSISTANCE- The sale or barter of
eligible commodities under this title may be conducted only within (as
determined by the Secretary)--
`(i) a recipient country or country near the recipient country;
or
`(ii) another country, if--
`(I) the sale or barter within the recipient country or nearby
country is not practicable; and
`(II) the sale or barter within countries other than the
recipient country or nearby country will not disrupt commercial
markets for the agricultural commodity involved.
`(C) HUMANITARIAN OR DEVELOPMENT PURPOSES- The Secretary may
authorize the use of proceeds or exchanges to pay the costs incurred by an
eligible organization under this title for--
`(i)(I) programs targeted at hunger and malnutrition;
or
`(II) development programs involving food security or
education;
`(ii) transportation, storage, and distribution of eligible
commodities provided under this title; and
`(iii) administration, sales, monitoring, and technical
assistance.
`(D) EXCEPTION- The Secretary shall not approve the use of
proceeds described in subparagraph (C) to fund any administrative expenses
of a foreign government.
`(E) PRIVATE SECTOR ENHANCEMENT- As appropriate, the Secretary may
provide eligible commodities under this title in a manner that uses
commodity transactions as a means of developing in the recipient countries
a competitive private sector that can provide for the importation,
transportation, storage, marketing, and distribution of
commodities.
`(i) DISPLACEMENT OF COMMERCIAL SALES- In carrying out this title, the
Secretary shall, to the maximum extent practicable consistent with the
purposes of this title, avoid--
`(1) displacing any commercial export sale of United States
agricultural commodities that would otherwise be made;
`(2) disrupting world prices of agricultural commodities;
or
`(3) disrupting normal patterns of commercial trade of agricultural
commodities with foreign countries.
`(j) DEADLINE FOR PROGRAM ANNOUNCEMENTS-
`(1) IN GENERAL- Before the beginning of the applicable fiscal year,
the Secretary shall, to the maximum extent practicable--
`(A) make all determinations concerning program agreements and
resource requests for programs under this title; and
`(B) announce those determinations.
`(2) REPORT- Not later than November 1 of the applicable fiscal
year, the Secretary shall submit to the Committee on Agriculture of the
House of Representatives and the Committee on Agriculture, Nutrition, and
Forestry of the Senate a list of programs, countries, and commodities, and
the total amount of funds for transportation and administrative costs,
approved to date under this title.
`(k) MILITARY DISTRIBUTION OF ASSISTANCE-
`(1) IN GENERAL- The Secretary shall ensure, to the maximum extent
practicable, that agricultural commodities made available under this title
are provided without regard to--
`(A) the political affiliation, geographic location, ethnic,
tribal, or religious identity of the recipient; or
`(B) any other extraneous factors, as determined by the
Secretary.
`(2) PROHIBITION ON HANDLING OF COMMODITIES BY THE MILITARY-
`(A) IN GENERAL- Except as provided in subparagraph (B), the
Secretary shall not enter into an agreement under this title to provide
agricultural commodities if the agreement requires or permits the
distribution, handling, or allocation of agricultural commodities by the
military forces of any foreign government or insurgent
group.
`(B) EXCEPTION- The Secretary may authorize the distribution,
handling, or allocation of commodities by the military forces of a country
in exceptional circumstances in which--
`(i) nonmilitary channels are not available for distribution,
handling, or allocation;
`(ii) the distribution, handling, or allocation is consistent
with paragraph (1); and
`(iii) the Secretary determines that the distribution, handling,
or allocation is necessary to meet the emergency health, safety, or
nutritional requirements of the population of a recipient
country.
`(3) ENCOURAGEMENT OF SAFE PASSAGE- In entering into an agreement
under this title that involves 1 or more areas within a recipient country
that is experiencing protracted warfare or civil unrest, the Secretary
shall, to the maximum extent practicable, encourage all parties to the
conflict to--
`(A) permit safe passage of the commodities and other relief
supplies; and
`(B) establish safe zones for--
`(i) medical and humanitarian treatment; and
`(ii) evacuation of injured persons.
`(l) LEVEL OF ASSISTANCE- The cost of commodities made available under
this title, and the expenses incurred in connection with the provision of
those commodities shall be in addition to the level of assistance provided
under the Agricultural Trade Development and Assistance Act of 1954 (7 U.S.C.
1691 et seq.).
`(m) COMMODITY CREDIT CORPORATION-
`(1) IN GENERAL- Subject to paragraphs (5) through (7), the
Secretary may use the funds, facilities, and authorities of the Corporation
to carry out this title.
`(2) MINIMUM TONNAGE- Subject to paragraph (6)(B), not less than
400,000 metric tons of commodities may be provided under this title for the
program established under subsection (b) for each of fiscal years 2002
through 2006.
`(3) AUTHORIZATION OF APPROPRIATIONS- In addition to tonnage
authorized under paragraph (2), there are authorized to be appropriated such
sums as are necessary to carry out the program established under subsection
(b).
`(4) TITLE I FUNDS- In addition to tonnage and funds authorized
under paragraphs (2), (3), and (6)(B), the Corporation may use funds
appropriated to carry out title I of the Agricultural Trade Development and
Assistance Act of 1954 (7 U.S.C. 1701 et seq.)) in carrying out the program
established under subsection (b).
`(5) LIMITATION ON PURCHASES OF COMMODITIES- The Corporation may
purchase agricultural commodities for disposition under this title only if
Corporation inventories are insufficient to satisfy commitments made in
agreements entered into under this title.
`(6) ELIGIBLE COSTS AND EXPENSES-
`(A) IN GENERAL- Subject to subparagraph (B), with respect to an
eligible commodity made available under the program established under
subsection (b), the Corporation may pay--
`(i) the costs of acquiring the eligible
commodity;
`(ii) the costs associated with packaging, enriching,
preserving, and fortifying of the eligible commodity;
`(iii) the processing, transportation, handling, and other
incidental costs incurred before the date on which the commodity is
delivered free on board vessels in United States ports;
`(iv) the vessel freight charges from United States ports or
designated Canadian transshipment ports, as determined by the Secretary,
to designated ports of entry abroad;
`(v) the costs associated with transporting the eligible
commodity from United States ports to designated points of entry abroad
in a case in which--
`(I) a recipient country is landlocked;
`(II) ports of a recipient country cannot be used effectively
because of natural or other disturbances;
`(III) carriers to a specific country are unavailable;
or
`(IV) substantial savings in costs or time may be gained by
the use of points of entry other than ports;
`(vi) the charges for general average contributions arising out
of the ocean transport of commodities transferred; and
`(vii) the costs, in addition to costs authorized by clauses (i)
through (vi), of providing--
`(I) assistance in the administration, sale, and monitoring of
food assistance activities under this title; and
`(II) technical assistance for monetization
programs.
`(B) FUNDING- Except for costs described in clauses (i) through
(iii) of subparagraph (A), unless authorized in advance in an
appropriations Act or reallocated under subsection
(c)(7)(C)--
`(i) not more than $55,000,000 of funds that would be available
to carry out paragraph (2) may be used to cover costs under clauses (iv)
through (vii) of subparagraph (A); and
`(ii) of the amount provided under clause (i), not more than
$12,000,000 shall be made available to cover costs under clauses (vi)
and (vii) of subparagraph (A).
`(7) PAYMENT OF ADMINISTRATIVE COSTS- An eligible organization that
receives payment for administrative costs through monetization of the
eligible commodity under subsection (h)(2) shall not be eligible to receive
payment for the same administrative costs through direct payments under
paragraph (6)(A)(vii)(I).'.
(b) CONFORMING AMENDMENTS-
(1) Section 416(b)(7)(D)(iii) of the Agricultural Act of 1949 (7
U.S.C. 1431(b)(7)(D)(iii)) is amended by striking `the Food for Progress Act
of 1985' and inserting `title VIII of the Agricultural Trade Act of
1978'.
(2) The Act of August 19, 1958 (7 U.S.C. 1431 note; Public Law
85-683) is amended by striking `the Food for Progress Act of 1985' and
inserting `title VIII of the Agricultural Trade Act of 1978'.
(3) Section 1110 of the Food Security Act of 1985 (7 U.S.C. 1736o)
is repealed.
SEC. 326. EXPORTER ASSISTANCE INITIATIVE.
(a) FINDINGS- Congress find that--
(1) information in the possession of Federal agencies other than the
Department of Agriculture that is necessary for the export of agricultural
commodities and products is available only from multiple disparate sources;
and
(2) because exporters often need access to information quickly,
exporters lack the time to search multiple sources to access necessary
information, and exporters often are unaware of where the necessary
information can be located.
(b) INITIATIVE- Title I of the Agricultural Trade Act of 1978 (7
U.S.C. 5601 et seq.) is amended by adding at the end the following:
`SEC. 107. EXPORTER ASSISTANCE INITIATIVE.
`(a) IN GENERAL- In order to create a single source of information for
exports of United States agricultural commodities, the Secretary shall develop
a website on the Internet that collates onto a single website all information
from all agencies of the Federal Government that is relevant to the export of
United States agricultural commodities.
`(b) AUTHORIZATION OF APPROPRIATIONS- There are authorized to be
appropriated to carry out subsection (a)--
`(1) $1,000,000 for each of fiscal years 2002 through 2004;
and
`(2) $500,000 for each of fiscal years 2005 and 2006.'.
Subtitle C--Miscellaneous Agricultural Trade
Provisions
SEC. 331. BILL EMERSON HUMANITARIAN TRUST.
Section 302 of the Bill Emerson Humanitarian Trust Act (7 U.S.C.
1736f-1) is amended by striking `2002' each place it appears in subsection
(b)(2)(B)(i) and paragraphs (1) and (2) of subsection (h) and inserting
`2006'.
SEC. 332. EMERGING MARKETS.
Section 1542 of the Food, Agriculture, Conservation, and Trade Act of
1990 (7 U.S.C. 5622 note; Public Law 101-624) is amended by striking `2002'
each place it appears in subsections (a) and (d)(1)(A)(i) and inserting
`2006'.
SEC. 333. BIOTECHNOLOGY AND AGRICULTURAL TRADE PROGRAM.
Section 1542 of the Food, Agriculture, Conservation, and Trade Act of
1990 (7 U.S.C. 5622 note; Public Law 101-624) is amended by adding at the end
the following:
`(g) BIOTECHNOLOGY AND AGRICULTURAL TRADE PROGRAM-
`(1) IN GENERAL- The Secretary of Agriculture shall establish a
program to enhance foreign acceptance of agricultural biotechnology and
United States agricultural products developed through
biotechnology.
`(2) FOCUS- The program shall address the continuing and increasing
market access, regulatory, and marketing issues relating to export commerce
of United States agricultural biotechnology products.
`(3) EDUCATION AND OUTREACH-
`(A) FOREIGN MARKETS- Support for United States agricultural
market development organizations to carry out education and other outreach
efforts concerning biotechnology shall target such educational initiatives
directed toward--
`(i) producers, buyers, consumers, and media in foreign markets
through initiatives in foreign markets; and
`(ii) government officials, scientists, and trade officials from
foreign countries through exchange programs.
`(B) FUNDING FOR EDUCATION AND OUTREACH- Funding for activities
under subparagraph (A) may be--
`(I) the emerging markets program under this section;
or
`(II) the Cochran Fellowship Program under section 1543;
or
`(ii) applied directly to foreign market development cooperators
through the foreign market development cooperator program established
under section 702.
`(A) IN GENERAL- The Secretary shall assist exporters of United
States agricultural commodities in cases in which the exporters are harmed
by unwarranted and arbitrary barriers to trade due to--
`(i) marketing of biotechnology products;
`(iv) other sanitary or phytosanitary concerns.
`(B) AUTHORIZATION OF APPROPRIATIONS- There is authorized to be
appropriated to carry out this paragraph $1,000,000 for each of fiscal
years 2002 through 2006.
`(A) COMMODITY CREDIT CORPORATION- The Secretary shall use the
funds, facilities, and authorities of the Commodity Credit Corporation to
carry out this subsection (other than paragraph (4)).
`(B) FUNDING AMOUNT- Of the funds of the Commodity Credit
Corporation, the Secretary shall make available to carry out this
subsection (other than paragraph (4)) $15,000,000 for each of fiscal years
2002 through 2006.'.
SEC. 334. SURPLUS COMMODITIES FOR DEVELOPING OR FRIENDLY
COUNTRIES.
(a) USE OF CURRENCIES- Section 416(b)(7)(D) of the Agricultural Act of
1949 (7 U.S.C. 1431(b)(7)(D)) is amended--
(1) in clauses (i) and (iii), by striking `foreign currency' each
place it appears;
(A) in the first sentence, by striking `Foreign currencies' and
inserting `Proceeds'; and
(B) in the second sentence, by striking `foreign currency';
and
(A) by striking `Foreign currency proceeds' and inserting
`Proceeds'; and
(B) by striking `other than the country of origin--' and all that
follows and inserting `other than the country of origin, for the purpose
of carrying out programs under this subsection.'.
(b) IMPLEMENTATION OF AGREEMENTS- Section 416(b)(8) of the
Agricultural Act of 1949 (7 U.S.C. 1431(b)(8)) is amended by striking `(8)(A)'
and all that follows through `(B) The Secretary' and inserting the
following:
`(8) ADMINISTRATIVE PROVISIONS-
`(A) DIRECT DELIVERY- In addition to practices in effect on the
date of enactment of this subparagraph, the Secretary may approve an
agreement that provides for direct delivery of eligible commodities to
milling or processing facilities more than 50 percent of the interest in
which is owned by United States citizens in recipient countries, with the
proceeds of transactions transferred in cash to eligible organizations to
carry out approved projects.
`(B) REGULATIONS- The Secretary'.
(c) CERTIFIED INSTITUTIONAL PARTNERS- Section 416 of the Agricultural
Act of 1949 (7 U.S.C. 1431) is amended by adding at the end the
following:
`(c) CERTIFIED INSTITUTIONAL PARTNERS-
`(1) IN GENERAL- The Secretary shall promulgate regulations and
guidelines to permit private voluntary organizations and cooperatives to be
certified as institutional partners.
`(2) REQUIREMENTS- To become a certified institutional partner, a
private voluntary organization or cooperative shall submit to the Secretary
evidence of organizational capacity that describes--
`(A) the financial, programmatic, commodity management, and
auditing abilities and practices of the organization or cooperative;
and
`(B) the capacity of the organization or cooperative to carry out
projects in particular countries.
`(3) MULTI-COUNTRY PROPOSALS- A certified institutional partner
shall be eligible to--
`(A) submit a single proposal for 1 or more countries in which the
certified institutional partner has already demonstrated organizational
capacity; and
`(B) receive expedited review of the proposal.'.
SEC. 335. AGRICULTURAL TRADE WITH CUBA.
(a) IN GENERAL- Section 908 of the Agriculture, Rural Development,
Food and Drug Administration and Related Agencies Appropriations Act, 2001 (22
U.S.C. 7207), is amended by striking subsection (b).
(b) CONFORMING AMENDMENTS- Section 908(a) of the Agriculture, Rural
Development, Food and Drug Administration and Related Agencies Appropriations
Act, 2001 (22 U.S.C. 7207(a)) (as amended by subsection (a)), is
amended--
(1) by striking `(a)' and all that follows through `Notwithstanding'
and inserting the following:
`(a) IN GENERAL- Notwithstanding';
(2) by striking `(2) RULE OF CONSTRUCTION- Nothing in paragraph (1)'
and inserting the following:
`(b) RULE OF CONSTRUCTION- Nothing in subsection (a)'; and
(3) by striking `(3) WAIVER- The President may waive the application
of paragraph (1)' and inserting the following:
`(c) WAIVER- The President may waive the application of subsection
(a)'.
SEC. 336. SENSE OF CONGRESS CONCERNING AGRICULTURAL TRADE.
(a) AGRICULTURE TRADE NEGOTIATING OBJECTIVES- It is the sense of
Congress that the principal negotiating objective of the United States with
respect to agricultural trade in all multilateral, regional, and bilateral
negotiations is to obtain competitive opportunities for the export of United
States agricultural commodities in foreign markets substantially equivalent to
the competitive opportunities afforded foreign exports in United States
markets and to achieve fairer and more open conditions of agricultural trade
in bulk and value-added commodities by--
(1) reducing or eliminating, by a date certain, tariffs or other
charges that decrease market opportunities for the export of United States
agricultural commodities, giving priority to United States agricultural
commodities that are subject to significantly higher tariffs or subsidy
regimes of major producing countries;
(2) immediately eliminating all export subsidies on agricultural
commodities worldwide while maintaining bona fide food aid and preserving
United States agricultural market development and export credit programs
that allow the United States to compete with other foreign export promotion
efforts;
(3) leveling the playing field for United States agricultural
producers by disciplining domestic supports such that no other country can
provide greater support, measured as a percentage of total agricultural
production value, than the United States does while preserving existing
green box category to support conservation activities, family farms, and
rural communities;
(4) developing, strengthening, and clarifying rules and effective
dispute settlement mechanisms to eliminate practices that unfairly decrease
United States market access opportunities for United States agricultural
commodities or distort agricultural markets to the detriment of the United
States, including--
(A) unfair or trade-distorting activities of state trading
enterprises and other administrative mechanisms, with emphasis
on--
(i) requiring price transparency in the operation of state
trading enterprises and such other mechanisms; and
(ii) ending discriminatory pricing practices for agricultural
commodities that amount to de facto export subsidies so that the
enterprises or other mechanisms do not (except in cases of bona fide
food aid) sell agricultural commodities in foreign markets at prices
below domestic market prices or prices below the full costs of acquiring
and delivering agricultural commodities to the foreign
markets;
(B) unjustified trade restrictions or commercial requirements
affecting new agricultural technologies, including
biotechnology;
(C) unjustified sanitary or phytosanitary restrictions, including
restrictions that are not based on scientific principles, in contravention
of the Agreement on the Application of Sanitary and Phytosanitary Measures
(as described in section 101(d)(3) of the Uruguay Round Agreements Act (19
U.S.C. 3511(d)(3)));
(D) other unjustified technical barriers to agricultural trade;
and
(E) restrictive and nontransparent rules in the administration of
tariff rate quotas;
(5) improving import relief mechanisms to recognize the unique
characteristics of perishable agricultural commodities;
(6) taking into account whether a party to negotiations with respect
to trading in an agricultural commodity has--
(A) failed to adhere to the provisions of an existing bilateral
trade agreement with the United States;
(B) circumvented obligations under a multilateral trade agreement
to which the United States is a signatory; or
(C) manipulated its currency value to the detriment of United
States agricultural producers or exporters; and
(7) otherwise ensuring that countries that accede to the World Trade
Organization--
(A) have made meaningful market liberalization commitments in
agriculture; and
(B) make progress in fulfilling those commitments over
time.
(b) PRIORITY FOR AGRICULTURE TRADE- It is the sense of Congress
that--
(1) reaching a successful agreement on agriculture should be the top
priority of United States negotiators in World Trade Organization talks;
and
(2) if the primary export competitors of the United States fail to
reduce their trade distorting domestic supports and eliminate export
subsidies in accordance with the negotiating objectives expressed in this
section, the United States should take steps to increase the leverage of
United States negotiators and level the playing field for United States
producers, within existing World Trade Organization commitments.
(c) CONSULTATION WITH CONGRESSIONAL COMMITTEES- It is the sense of
Congress that--
(1) before the United States Trade Representative negotiates a trade
agreement that would reduce tariffs on agricultural commodities or require a
change in United States agricultural law, the United States Trade
Representative should consult with the Committee on Agriculture and the
Committee on Ways and Means of the House of Representatives and the
Committee on Agriculture, Nutrition, and Forestry and the Committee on
Finance of the Senate;
(2) not less than 48 hours before initialing an agreement relating
to agricultural trade negotiated under the auspices of the World Trade
Organization, the United States Trade Representative should consult closely
with the committees referred to in paragraph (1) regarding--
(A) the details of the agreement;
(B) the potential impact of the agreement on United States
agricultural producers; and
(C) any changes in United States law necessary to implement the
agreement; and
(3) any agreement or other understanding (whether verbal or in
writing) that relates to agricultural trade that is not disclosed to
Congress before legislation implementing a trade agreement is introduced in
either the Senate or the House of Representatives should not be considered
to be part of the agreement approved by Congress and should have no force
and effect under Unites States law or in any dispute settlement
body.
SEC. 337. REPORT ON USE OF PERISHABLE COMMODITIES.
Not later than 120 days after the date of enactment of this Act, the
Secretary of Agriculture shall develop 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 on deficiencies in
transportation and storage infrastructure and deficiencies in funding that
have limited the use, and expansion of use, of highly perishable and
semiperishable commodities in international food aid programs of the
Department of Agriculture.
SEC. 338. SENSE OF SENATE CONCERNING FOREIGN ASSISTANCE
PROGRAMS.
(a) FINDINGS- Congress finds that--
(1) the international community faces a continuing epidemic of
ethnic, sectarian, and criminal violence;
(2) poverty, hunger, political uncertainty, and social instability
are the principal causes of violence and conflict around the
world;
(3) broad-based, equitable economic growth and agriculture
development facilitates political stability, food security, democracy, and
the rule of law;
(4) democratic governments are more likely to advocate and observe
international laws, protect civil and human rights, pursue free market
economies, and avoid external conflicts;
(5) the United States Agency for International Development has
provided critical democracy and governance assistance to a majority of the
nations that successfully made the transition to democratic governments
during the past 2 decades;
(6) 43 of the top 50 consumer nations of American agricultural
products were once United States foreign aid recipients;
(7) in the past 50 years, infant child death rates in the developing
world have been reduced by 50 percent, and health conditions around the
world have improved more during this period than in any other
period;
(8) the United States Agency for International Development child
survival programs have significantly contributed to a 10 percent reduction
in infant mortality rates worldwide in just the past 8 years;
(9) in providing assistance by the United States and other donors in
better seeds and teaching more efficient agricultural techniques over the
past 2 decades have helped make it possible to feed an additional
1,000,000,000 people in the world;
(10) despite this progress, approximately 1,200,000,000 people,
one-quarter of the world's population, live on less that $1 per day, and
approximately 3,000,000,000 people live on only $2 per day;
(11) 95 percent of new births occur in developing countries,
including the world's poorest countries; and
(12) only 1/2 percent of the Federal budget is dedicated to
international economic and humanitarian assistance.
(b) SENSE OF THE SENATE- It is the sense of the Senate that--
(1) United States foreign assistance programs should play an
increased role in the global fight against terrorism to complement the
national security objectives of the United States;
(2) the United States should lead coordinated international efforts
to provide increased financial assistance to countries with impoverished and
disadvantaged populations that are the breeding grounds for terrorism;
and
(3) the United States Agency for International Development and the
Department of Agriculture should substantially increase humanitarian,
economic development, and agricultural assistance to foster international
peace and stability and the promotion of human rights.
TITLE IV--NUTRITION PROGRAMS
SEC. 401. SHORT TITLE.
This title may be cited as the `Food Stamp Reauthorization Act of
2002'.
Subtitle A--Food Stamp Program
SEC. 411. ENCOURAGEMENT OF PAYMENT OF CHILD SUPPORT.
(a) EXCLUSION- Section 5(d)(6) of the Food Stamp Act of 1977 (7 U.S.C.
2014(d)(6)) is amended by adding at the end the following: `and child support
payments made by a household member to or for an individual who is not a
member of the household if the household member is legally obligated to make
the payments,'.
(b) SIMPLIFIED PROCEDURE- Section 5 of the Food Stamp Act of 1977 (7
U.S.C. 2014) is amended--
(1) in subsection (e), by striking paragraph (4) and inserting the
following:
`(4) DEDUCTION FOR CHILD SUPPORT PAYMENTS-
`(A) IN GENERAL- In lieu of providing an exclusion for legally
obligated child support payments made by a household member under
subsection (d)(6), a State agency may elect to provide a deduction for the
amount of the payments.
`(B) ORDER OF DETERMINING DEDUCTIONS- A deduction under this
paragraph shall be determined before the computation of the excess shelter
expense deduction under paragraph (6).'; and
(2) by adding at the end the following:
`(n) STATE OPTIONS TO SIMPLIFY DETERMINATION OF CHILD SUPPORT PAYMENTS
MADE BY HOUSEHOLD MEMBERS-
`(1) IN GENERAL- Regardless of whether a State agency elects to
provide a deduction under subsection (e)(4), the Secretary shall establish
simplified procedures to allow State agencies, at the option of the State
agencies, to determine the amount of the legally obligated child support
payments made, including procedures to allow the State agency to rely on
information from the agency responsible for implementing the program under
part D of title IV of the Social Security Act (42 U.S.C. 661 et seq.)
concerning payments made in prior months in lieu of obtaining current
information from the household.
`(2) DURATION OF DETERMINATION OF AMOUNT OF SUPPORT PAYMENTS- If a
State agency makes a determination of the amount of support payments of a
household under paragraph (1), the State agency may provide that the amount
of the exclusion or deduction for the household shall not change until the
eligibility of the household is next redetermined under section
11(e)(4).'.
SEC. 412. SIMPLIFIED DEFINITION OF INCOME.
Section 5(d) of the Food Stamp Act of 1977 (7 U.S.C. 2014(d)) is
amended--
(1) by striking `and (15)' and inserting `(15)'; and
(2) by inserting before the period at the end the following: `, (16)
at the option of the State agency, any educational loans on which payment is
deferred, grants, scholarships, fellowships, veterans' educational benefits,
and the like (other than loans, grants, scholarships, fellowships, veterans'
educational benefits, and the like excluded under paragraph (3)), to the
extent that they are required to be excluded under title XIX of the Social
Security Act (42 U.S.C. 1396 et seq.), (17) at the option of the State
agency, any State complementary assistance program payments that are
excluded for the purpose of determining eligibility for medical assistance
under section 1931 of the Social Security Act (42 U.S.C. 1396u-1), and (18)
at the option of the State agency, any types of income that the State agency
does not consider when determining eligibility for (A) cash assistance under
a program funded under part A of title IV of the Social Security Act (42
U.S.C. 601 et seq.) or the amount of such assistance, or (B) medical
assistance under section 1931 of the Social Security Act (42 U.S.C.
1396u-1), except that this paragraph does not authorize a State agency to
exclude wages or salaries, benefits under title I, II, IV, X, XIV, or XVI of
the Social Security Act (42 U.S.C. 1381 et seq.), regular payments from a
government source (such as unemployment benefits and general assistance),
worker's compensation, child support payments made to a household member by
an individual who is legally obligated to make the payments, or such other
types of income the consideration of which the Secretary determines by
regulation to be essential to equitable determinations of eligibility and
benefit levels'.
SEC. 413. INCREASE IN BENEFITS TO HOUSEHOLDS WITH CHILDREN.
Section 5(e) of the Food Stamp Act of 1977 (7 U.S.C. 2014(e)) is
amended by striking paragraph (1) and inserting the following:
`(A) IN GENERAL- Subject to the other provisions of this
paragraph, the Secretary shall allow for each household a standard
deduction that is equal to the greater of--
`(i) the applicable percentage specified in subparagraph (D) of
the applicable income standard of eligibility established under
subsection (c)(1); or
`(ii) the minimum deduction specified in subparagraph
(E).
`(B) GUAM- The Secretary shall allow for each household in Guam a
standard deduction that is--
`(i) equal to the applicable percentage specified in
subparagraph (D) of twice the income standard of eligibility established
under subsection (c)(1) for the 48 contiguous States and the District of
Columbia; but
`(ii) not less than the minimum deduction for Guam specified in
subparagraph (E).
`(C) HOUSEHOLDS OF 6 OR MORE MEMBERS- The income standard of
eligibility established under subsection (c)(1) for a household of 6
members shall be used to calculate the standard deduction for each
household of 6 or more members.
`(D) APPLICABLE PERCENTAGE- For the purpose of subparagraph (A),
the applicable percentage shall be--
`(i) 8 percent for each of fiscal years 2002 through
2007;
`(ii) 8.25 percent for fiscal year 2008;
`(iii) 8.5 percent for each of fiscal years 2009 and 2010;
and
`(iv) 9 percent for fiscal year 2011 and each fiscal year
thereafter.
`(E) MINIMUM DEDUCTION- The minimum deduction shall be $134, $229,
$189, $269, and $118 for the 48 contiguous States and the District of
Columbia, Alaska, Hawaii, Guam, and the Virgin Islands of the United
States, respectively.'.
SEC. 414. SIMPLIFIED DETERMINATION OF HOUSING COSTS.
(a) IN GENERAL- Section 5(e)(7) of the Food Stamp Act of 1977 (7
U.S.C. 2014(e)(7)) is amended--
(1) in subparagraph (A)--
(A) by striking `A household' and inserting the
following:
`(i) IN GENERAL- A household'; and
(B) by adding at the end the following:
`(ii) INCLUSION OF CERTAIN PAYMENTS- In determining the shelter
expenses of a household under this paragraph, the State agency shall
include any required payment to the landlord of the household without
regard to whether the required payment is designated to pay specific
charges.'; and
(2) by adding at the end the following:
`(D) HOMELESS HOUSEHOLDS-
`(i) ALTERNATIVE DEDUCTION- In lieu of the deduction provided
under subparagraph (A), a State agency may elect to allow a household in
which all members are homeless individuals, but that is not receiving
free shelter throughout the month, to receive a deduction of $143 per
month.
`(ii) INELIGIBILITY- The State agency may make a household with
extremely low shelter costs ineligible for the alternative deduction
under clause (i).'.
(b) CONFORMING AMENDMENTS- Section 5 of the Food Stamp Act of 1977 (7
U.S.C. 2014) is amended--
(A) by striking paragraph (5); and
(B) by redesignating paragraphs (6) and (7) as paragraphs (5) and
(6), respectively; and
(2) in subsection (k)(4)(B), by striking `subsection (e)(7)' and
inserting `subsection (e)(6)'.
SEC. 415. SIMPLIFIED UTILITY ALLOWANCE.
Section 5(e)(6)(C)(iii) of the Food Stamp Act of 1977 (as amended by
section 414(b)(1)(B)) is amended--
(1) in subclause (I)(bb), by inserting `(without regard to subclause
(III))' after `Secretary finds'; and
(2) by adding at the end the following:
`(III) INAPPLICABILITY OF CERTAIN RESTRICTIONS- Clauses
(ii)(II) and (ii)(III) shall not apply in the case of a State agency
that has made the use of a standard utility allowance mandatory under
subclause (I).'.
SEC. 416. SIMPLIFIED PROCEDURE FOR DETERMINATION OF EARNED
INCOME.
Section 5(f)(1) of the Food Stamp Act of 1977 (7 U.S.C. 2014(f)(1)) is
amended by adding at the end the following:
`(C) SIMPLIFIED DETERMINATION OF EARNED INCOME-
`(i) IN GENERAL- A State agency may elect to determine monthly
earned income by multiplying weekly income by 4 and biweekly income by
2.
`(ii) ADJUSTMENT OF EARNED INCOME DEDUCTION- A State agency that
makes an election described in clause (i) shall adjust the earned income
deduction under subsection (e)(2)(B) to the extent necessary to prevent
the election from resulting in increased costs to the food stamp
program, as determined consistent with standards promulgated by the
Secretary.'.
SEC. 417. SIMPLIFIED DETERMINATION OF DEDUCTIONS.
Section 5(f)(1) of the Food Stamp Act of 1977 (7 U.S.C. 2014(f)(1))
(as amended by section 416) is amended by adding at the end the
following:
`(D) SIMPLIFIED DETERMINATION OF DEDUCTIONS-
`(i) IN GENERAL- Except as provided in clause (ii), for the
purposes of subsection (e), a State agency may elect to disregard until
the next redetermination of eligibility under section 11(e)(4) 1 or more
types of changes in the circumstances of a household that affect the
amount of deductions the household may claim under subsection
(e).
`(ii) CHANGES THAT MAY NOT BE DISREGARDED- Under clause (i), a
State agency may not disregard--
`(I) any reported change of residence; or
`(II) under standards prescribed by the Secretary, any change
in earned income.'.
SEC. 418. SIMPLIFIED DEFINITION OF RESOURCES.
Section 5(g) of the Food Stamp Act of 1977 (7 U.S.C. 2014(g)) is
amended by adding at the end the following:
`(6) EXCLUSION OF TYPES OF FINANCIAL RESOURCES NOT CONSIDERED UNDER
CERTAIN OTHER FEDERAL PROGRAMS-
`(A) IN GENERAL- Subject to subparagraph (B), the Secretary shall
promulgate regulations under which a State agency may, at the option of
the State agency, exclude from financial resources under this subsection
any types of financial resources that the State agency does not consider
when determining eligibility for--
`(i) cash assistance under a program funded under part A of
title IV of the Social Security Act (42 U.S.C. 601 et seq.);
or
`(ii) medical assistance under section 1931 of the Social
Security Act (42 U.S.C. 1396u-1).
`(B) LIMITATIONS- Subparagraph (A) does not authorize a State
agency to exclude--
`(iii) amounts in any account in a financial institution that
are readily available to the household; or
`(iv) any other similar type of resource the inclusion in
financial resources of which the Secretary determines by regulation to
be essential to equitable determinations of eligibility under the food
stamp program, except to the extent that any of those types of resources
are excluded under another paragraph of this
subsection.'.
SEC. 419. ALTERNATIVE ISSUANCE SYSTEMS IN DISASTERS.
Section 5(h)(3)(B) of the Food Stamp Act of 1977 (7 U.S.C.
2014(h)(3)(B)) is amended--
(1) in the first sentence, by inserting `issuance methods and' after
`shall adjust'; and
(2) in the second sentence, by inserting `, any conditions that make
reliance on electronic benefit transfer systems described in section 7(i)
impracticable,' after `personnel'.
SEC. 420. STATE OPTION TO REDUCE REPORTING REQUIREMENTS.
Section 6(c)(1) of the Food Stamp Act of 1977 (7 U.S.C. 2015(c)(1)) is
amended--
(1) in subparagraph (B), by striking `on a monthly basis';
and
(2) by adding at the end the following:
`(D) FREQUENCY OF REPORTING-
`(i) IN GENERAL- Except as provided in subparagraphs (A) and
(C), a State agency may require households that report on a periodic
basis to submit reports--
`(I) not less often than once each 6 months;
but
`(II) not more often than once each month.
`(ii) REPORTING BY HOUSEHOLDS WITH EXCESS INCOME- A household
required to report less often than once each 3 months shall,
notwithstanding subparagraph (B), report in a manner prescribed by the
Secretary if the income of the household for any month exceeds the
standard established under section 5(c)(2).'.
SEC. 421. BENEFITS FOR ADULTS WITHOUT DEPENDENTS.
(a) IN GENERAL- Section 6(o) of the Food Stamp Act of 1977 (7 U.S.C.
2015(o)) is amended--
(A) in subparagraph (B), by striking `and' at the
end;
(B) in subparagraph (C)--
(i) by striking `subsection (d)(4),' and inserting `subsection
(d)(4)'; and
(ii) by striking the period at the end and inserting `; and';
and
(C) by adding at the end the following:
`(D) a job search program or job search training program
if--
`(i) the program meets standards established by the Secretary to
ensure that the participant is continuously and actively seeking
employment in the private sector; and
`(ii) no position is currently available for the participant in
an employment or training program that meets the requirements of
subparagraph (C).';
(A) by striking `36-month' and inserting `24-month';
and
(B) by striking `3' and inserting `6';
(3) by striking paragraph (5) and inserting the
following:
`(5) ELIGIBILITY OF INDIVIDUALS WHILE MEETING WORK REQUIREMENT-
Notwithstanding paragraph (2), an individual who would otherwise be
ineligible under that paragraph shall be eligible to participate in the food
stamp program during any period in which the individual meets the work
requirement of subparagraph (A), (B), or (C) of that paragraph.';
and
(4) in paragraph (6)(A)(ii)--
(A) in subclause (III), by adding `and' at the end;
(i) by striking `3' and inserting `6'; and
(ii) by striking `; and' and inserting a period;
and
(C) by striking subclause (V).
(b) IMPLEMENTATION OF AMENDMENTS- For the purpose of implementing the
amendments made by subsection (a), a State agency shall disregard any period
during which an individual received food stamp benefits before the effective
date of this title.
SEC. 422. PRESERVATION OF ACCESS TO ELECTRONIC BENEFITS.
(a) IN GENERAL- Section 7(i)(1) of the Food Stamp Act of 1977 (7
U.S.C. 2016(i)(1)) is amended by adding at the end the following:
`(E) ACCESS TO EBT SYSTEMS-
`(i) IN GENERAL- No benefits shall be taken off-line or
otherwise made inaccessible because of inactivity until at least 180
days have elapsed since a household last accessed the account of the
household.
`(ii) NOTICE TO HOUSEHOLD- In a case in which benefits are taken
off-line or otherwise made inaccessible, the household shall be sent a
notice that--
`(I) explains how to reactivate the benefits;
and
`(II) offers assistance if the household is having difficulty
accessing the benefits of the household.'.
(b) APPLICABILITY- The amendment made by subsection (a) shall apply
with respect to each State agency beginning on the date on which the State
agency, after the date of enactment of this Act, enters into a contract to
operate an electronic benefit transfer system.
SEC. 423. COST NEUTRALITY FOR ELECTRONIC BENEFIT TRANSFER
SYSTEMS.
Section 7(i)(2) of the Food Stamp Act of 1977 (7 U.S.C. 2016(i)(2)) is
amended--
(1) by striking subparagraph (A); and
(2) by redesignating subparagraphs (B) through (I) as subparagraphs
(A) through (H), respectively.
SEC. 424. ALTERNATIVE PROCEDURES FOR RESIDENTS OF CERTAIN GROUP
FACILITIES.
(a) IN GENERAL- Section 8 of the Food Stamp Act of 1977 (7 U.S.C.
2017) is amended by adding at the end the following:
`(f) SIMPLIFIED PROCEDURES FOR RESIDENTS OF CERTAIN GROUP FACILITIES-
`(1) IN GENERAL- At the option of the State agency, allotments for
residents of facilities described in subparagraph (B), (C), (D), or (E) of
section 3(i)(5) may be determined and issued under this subsection in lieu
of subsection (a).
`(2) AMOUNT OF ALLOTMENT- The allotment for each eligible resident
described in paragraph (1) shall be calculated in accordance with
standardized procedures established by the Secretary that take into account
the allotments typically received by residents of facilities described in
paragraph (1).
`(3) ISSUANCE OF ALLOTMENT-
`(A) IN GENERAL- The State agency shall issue an allotment
determined under this subsection to the administration of a facility
described in paragraph (1) as the authorized representative of the
residents of the facility.
`(B) ADJUSTMENT- The Secretary shall establish procedures to
ensure that a facility described in paragraph (1) does not receive a
greater proportion of a resident's monthly allotment than the proportion
of the month during which the resident lived in the
facility.
`(4) DEPARTURES OF COVERED RESIDENTS-
`(A) NOTIFICATION- Any facility described in paragraph (1) that
receives an allotment for a resident under this subsection
shall--
`(i) notify the State agency promptly on the departure of the
resident; and
`(ii) notify the resident, before the departure of the resident,
that the resident--
`(I) is eligible for continued benefits under the food stamp
program; and
`(II) should contact the State agency concerning continuation
of the benefits.
`(B) ISSUANCE TO DEPARTED RESIDENTS- On receiving a notification
under subparagraph (A)(i) concerning the departure of a resident, the
State agency--
`(i) shall promptly issue the departed resident an allotment for
the days of the month after the departure of the resident (calculated in
a manner prescribed by the Secretary) unless the departed resident
reapplies to participate in the food stamp program; and
`(ii) may issue an allotment for the month following the month
of the departure (but not any subsequent month) based on this subsection
unless the departed resident reapplies to participate in the food stamp
program.
`(C) STATE OPTION- The State agency may elect not to issue an
allotment under subparagraph (B)(i) if the State agency lacks sufficient
information on the location of the departed resident to provide the
allotment.
`(D) EFFECT OF REAPPLICATION- If the departed resident reapplies
to participate in the food stamp program, the allotment of the departed
resident shall be determined without regard to this
subsection.'.
(b) CONFORMING AMENDMENTS-
(1) Section 3(i) of the Food Stamp Act of 1977 (7 U.S.C. 2012(i)) is
amended--
(A) by striking `(i) `Household' means (1) an' and inserting the
following:
`(i)(1) `Household' means--
(B) in the first sentence, by striking `others, or (2) a group'
and inserting the following: `others; or
(C) in the second sentence, by striking `Spouses' and inserting
the following:
(D) in the third sentence, by striking `Notwithstanding' and
inserting the following:
(E) in paragraph (3) (as designated by subparagraph (D)), by
striking `the preceding sentences' and inserting `paragraphs (1) and
(2)';
(F) in the fourth sentence, by striking `In no event' and
inserting the following:
(G) in the fifth sentence, by striking `For the purposes of this
subsection, residents' and inserting the following:
`(5) For the purposes of this subsection, the following persons shall
not be considered to be residents of institutions and shall be considered to
be individual households:
(H) in paragraph (5) (as designated by subparagraph
(G))--
(i) by striking `Act, or are individuals' and inserting the
following: `Act.
(ii) by striking `such section, temporary' and inserting the
following: `that section.
(iii) by striking `children, residents' and inserting the
following: `children.
(iv) by striking `coupons, and narcotics' and inserting the
following: `coupons.
(v) by striking `shall not' and all that follows and inserting a
period.
(2) Section 5(a) of the Food Stamp Act of 1977 (7 U.S.C. 2014(a)) is
amended by striking `the third sentence of section 3(i)' each place it
appears and inserting `section 3(i)(4)'.
(3) Section 8(e)(1) of the Food Stamp Act of 1977 (7 U.S.C.
2017(e)(1)) is amended by striking `the last sentence of section 3(i)' and
inserting `section 3(i)(5)'.
(4) Section 17(b)(1)(B)(iv)(III)(aa) of the Food Stamp Act of 1977
(7 U.S.C. 2026(b)(1)(B)(iv)(III)(aa)) is amended by striking `the last 2
sentences of section 3(i)' and inserting `paragraphs (4) and (5) of section
3(i)'.
SEC. 425. REDEMPTION OF BENEFITS THROUGH GROUP LIVING
ARRANGEMENTS.
Section 10 of the Food Stamp Act of 1977 (7 U.S.C. 2019) is amended by
inserting after the first sentence the following: `Notwithstanding the
preceding sentence, a center, organization, institution, shelter, group living
arrangement, or establishment described in that sentence may be authorized to
redeem coupons through a financial institution described in that sentence if
the center, organization, institution, shelter, group living arrangement, or
establishment is equipped with 1 or more point-of-sale devices and is
operating in an area in which an electronic benefit transfer system described
in section 7(i) has been implemented.'.
SEC. 426. AVAILABILITY OF FOOD STAMP PROGRAM APPLICATIONS ON THE
INTERNET.
Section 11(e)(2)(B)(ii) of the Food Stamp Act of 1977 (7 U.S.C.
2020(e)(2)(B)(ii)) is amended--
(1) by inserting `(I)' after `(ii)';
(2) in subclause (I) (as designated by paragraph (1)), by adding
`and' at the end; and
(3) by adding at the end the following:
`(II) if the State agency maintains a website for the State
agency, shall make the application available on the website in each
language in which the State agency makes a printed application
available;'.
SEC. 427. SIMPLIFIED DETERMINATIONS OF CONTINUING ELIGIBILITY.
(a) IN GENERAL- Section 11(e) of the Food Stamp Act of 1977 (7 U.S.C.
2020(e)) is amended--
(1) by striking paragraph (4) and inserting the
following:
`(4)(A) that the State agency shall periodically require each
household to cooperate in a redetermination of the eligibility of the
household.
`(B) A redetermination under subparagraph (A) shall--
`(i) be based on information supplied by the household;
and
`(ii) conform to standards established by the
Secretary.
`(C) The interval between redeterminations of eligibility under
subparagraph (A) shall not exceed the eligibility review period;'
and
(A) by striking `within the household's certification period';
and
(B) by striking `or until' and all that follows through `occurs
earlier'.
(b) CONFORMING AMENDMENTS-
(1) Section 3(c) of the Food Stamp Act of 1977 (7 U.S.C. 2012(c)) is
amended--
(A) by striking `Certification period' and inserting `Eligibility
review period'; and
(B) by striking `certification period' each place it appears and
inserting `eligibility review period'.
(2) Section 5 of the Food Stamp Act of 1977 (7 U.S.C. 2014) is
amended--
(A) in subsection (d)(2), by striking `in the certification period
which' and inserting `that'; and
(B) in subsection (e) (as amended by section
414(b)(1)(B))--
(i) in paragraph (5)(B)(ii)--
(I) in subclause (II), by striking `certification period' and
inserting `eligibility review period'; and
(II) in subclause (III), by striking `has been anticipated for
the certification period' and inserting `was anticipated when the
household applied or at the most recent redetermination of eligibility
for the household'; and
(ii) in paragraph (6)(C)(iii)(II), by striking `the end of a
certification period' and inserting `each redetermination of the
eligibility of the household'.
(3) Section 6 of the Food Stamp Act of 1977 (7 U.S.C. 2015) is
amended--
(A) in subsection (c)(1)(C)(iv), by striking `certification
period' each place it appears and inserting `interval between required
redeterminations of eligibility'; and
(B) in subsection (d)(1)(D)(v)(II), by striking `a certification
period' and inserting `an eligibility review period'.
(4) Section 8(c) of the Food Stamp Act of 1977 (7 U.S.C. 2017(c)) is
amended--
(A) in the second sentence of paragraph (1), by striking `within a
certification period'; and
(B) in paragraph (2)(B), by striking `expiration of' and all that
follows through `during a certification period,' and inserting
`termination of benefits to the household,'.
(5) Section 11(e)(16) of the Food Stamp Act of 1977 (7 U.S.C.
2020(e)(16)) is amended by striking `the certification or recertification'
and inserting `determining the eligibility'.
SEC. 428. CLEARINGHOUSE FOR SUCCESSFUL NUTRITION EDUCATION
EFFORTS.
Section 11(f) of the Food Stamp Act of 1977 (7 U.S.C. 2020(f)) is
amended by striking paragraph (2) and inserting the following:
`(2) NUTRITION EDUCATION CLEARINGHOUSE- The Secretary
shall--
`(A) request State agencies to submit to the Secretary
descriptions of successful nutrition education programs designed for use
in the food stamp program and other nutrition assistance
programs;
`(B) make the descriptions submitted under subparagraph (A)
available on the website of the Department of Agriculture;
and
`(C) inform State agencies of the availability of the descriptions
on the website.'.
SEC. 429. TRANSITIONAL FOOD STAMPS FOR FAMILIES MOVING FROM
WELFARE.
(a) IN GENERAL- Section 11 of the Food Stamp Act of 1977 (7 U.S.C.
2020) is amended by adding at the end the following:
`(s) TRANSITIONAL BENEFITS OPTION-
`(1) IN GENERAL- A State agency may provide transitional food stamp
benefits to a household that ceases to receive cash assistance under a State
program funded under part A of title IV of the Social Security Act (42
U.S.C. 601 et seq.).
`(2) TRANSITIONAL BENEFITS PERIOD- Under paragraph (1), a household
may continue to receive food stamp benefits for a period of not more than 6
months after the date on which cash assistance is terminated.
`(3) AMOUNT OF BENEFITS- During the transitional benefits period
under paragraph (2), a household shall receive an amount of food stamp
benefits equal to the allotment received in the month immediately preceding
the date on which cash assistance was terminated, adjusted for--
`(A) the change in household income as a result of the termination
of cash assistance; and
`(B) any changes in circumstances that may result in an increase
in the food stamp allotment of the household and that the household elects
to report.
`(4) DETERMINATION OF FUTURE ELIGIBILITY- In the final month of the
transitional benefits period under paragraph (2), the State agency
may--
`(A) require the household to cooperate in a redetermination of
eligibility; and
`(B) initiate a new eligibility review period for the household
without regard to whether the preceding eligibility review period has
expired.
`(5) LIMITATION- A household shall not be eligible for transitional
benefits under this subsection if the household--
`(A) loses eligibility under section 6;
`(B) is sanctioned for a failure to perform an action required by
Federal, State, or local law relating to a cash assistance program
described in paragraph (1); or
`(C) is a member of any other category of households designated by
the State agency as ineligible for transitional benefits.'.
(b) CONFORMING AMENDMENTS-
(1) Section 3(c) of the Food Stamp Act of 1977 (7 U.S.C. 2012(c)) is
amended by adding at the end the following: `The limits specified in this
section may be extended until the end of any transitional benefit period
established under section 11(s).'.
(2) Section 6(c) of the Food Stamp Act of 1977 (7 U.S.C. 2015(c)) is
amended by striking `No household' and inserting `Except in a case in which
a household is receiving transitional benefits during the transitional
benefits period under section 11(s), no household'.
SEC. 430. DELIVERY TO RETAILERS OF NOTICES OF ADVERSE ACTION.
Section 14(a) of the Food Stamp Act of 1977 (7 U.S.C. 2023(a)) is
amended by striking paragraph (2) and inserting the following:
`(2) DELIVERY OF NOTICES- A notice under paragraph (1) shall be
delivered by any form of delivery that the Secretary determines will provide
evidence of the delivery.'.
SEC. 431. REFORM OF QUALITY CONTROL SYSTEM.
(a) IN GENERAL- Section 16(c) of the Food Stamp Act of 1977 (7 U.S.C.
2025(c)) is amended--
(A) by striking `enhances payment accuracy' and all that follows
through `(A) the Secretary' and inserting the following: `enhances payment
accuracy and that has the following elements:
`(A) ENHANCED ADMINISTRATIVE FUNDING- With respect to fiscal year
2001, the Secretary';
(B) in subparagraph (A)--
(i) by striking `one percentage point to a maximum of 60' and
inserting ` 1/2 of 1 percentage point to a maximum of 55';
and
(ii) by striking the semicolon at the end and inserting a
period; and
(C) by striking subparagraph (B) and all that follows and
inserting the following:
`(B) INVESTIGATION AND INITIAL SANCTIONS-
`(i) INVESTIGATION- Except as provided under subparagraph (C),
for any fiscal year in which the Secretary determines that a 95 percent
statistical probability exists that the payment error rate of a State
agency exceeds the national performance measure for payment error rates
announced under paragraph (6) by more than 1 percentage point, other
than for good cause shown, the Secretary shall investigate the
administration by the State agency of the food stamp program unless the
Secretary determines that sufficient information is already available to
review the administration by the State agency.
`(ii) INITIAL SANCTIONS- If an investigation under clause (i)
results in a determination that the State agency has been seriously
negligent (as determined under standards promulgated by the Secretary),
the State agency shall pay the Secretary an amount that reflects the
extent of such negligence (as determined under standards promulgated by
the Secretary), not to exceed 5 percent of the amount provided to the
State agency under subsection (a) for the fiscal year.
`(C) ADDITIONAL SANCTIONS- If, for any fiscal year, the Secretary
determines that a 95 percent statistical probability exists that the
payment error rate of a State agency exceeds the national performance
measure for payment error rates announced under paragraph (6) by more than
1 percentage point, other than for good cause shown, and that the State
agency was sanctioned under this paragraph or was the subject of an
investigation or review under subparagraph (B)(i) for each of the 2
immediately preceding fiscal years, the State agency shall pay to the
Secretary an amount equal to the product obtained by
multiplying--
`(i) the value of all allotments issued by the State agency in
the fiscal year;
`(aa) the amount by which the payment error rate of the State
agency for the fiscal year exceeds by more than 1 percentage point the national
performance measure for the fiscal year; bears to
`(bb) 10 percent; or
`(iii) the amount by which the payment error rate of the State
agency for the fiscal year exceeds by more than 1 percentage point the
national performance measure for the fiscal year.
`(D) CORRECTIVE ACTION PLANS- The Secretary shall foster
management improvements by the States by requiring State agencies to
develop and implement corrective action plans to reduce payment
errors.';
(2) in paragraph (2)(A), by inserting before the semicolon the
following: `, as adjusted downward as appropriate under paragraph
(10)';
(3) in paragraph (4), by striking `(4)' and all that follows through
the end of the first sentence and inserting the following:
`(4) REPORTING REQUIREMENTS- The Secretary may require a State
agency to report any factors that the Secretary considers necessary to
determine a State agency's payment error rate, enhanced administrative
funding, claim for payment error under paragraph (1), or performance under
the performance measures under paragraph (11).';
(4) in paragraph (5), by striking `(5)' and all that follows through
the end of the second sentence and inserting the following:
`(5) PROCEDURES- To facilitate the implementation of this
subsection, each State agency shall expeditiously submit to the Secretary
data concerning the operations of the State agency in each fiscal year
sufficient for the Secretary to establish the payment error rate for the
State agency for the fiscal year, to comply with paragraph (10), and to
determine the amount of enhanced administrative funding under paragraph
(1)(A), high performance bonus payments under paragraph (11), or claims
under subparagraph (B) or (C) of paragraph (1).';
(A) in the first and third sentences, by striking `paragraph (5)'
each place it appears and inserting `paragraph (8)'; and
(B) in the first sentence, by inserting `(but determined without
regard to paragraph (10))' before `times that'; and
(6) by adding at the end the following:
`(10) ADJUSTMENTS OF PAYMENT ERROR RATE-
`(i) ADJUSTMENT FOR HIGHER PERCENTAGE OF HOUSEHOLDS WITH EARNED
INCOME- With respect to fiscal year 2002 and each fiscal year
thereafter, in applying paragraph (1), the Secretary shall adjust the
payment error rate determined under paragraph (2)(A) as necessary to
take into account any increases in errors that result from the State
agency's having a higher percentage of participating households that
have earned income than the lesser of--
`(I) the percentage of participating households in all States
that have earned income; or
`(II) the percentage of participating households in the State
in fiscal year 1992 that had earned income.
`(ii) ADJUSTMENT FOR HIGHER PERCENTAGE OF HOUSEHOLDS WITH
NONCITIZEN MEMBERS- With respect to fiscal year 2002 and each fiscal
year thereafter, in applying paragraph (1), the Secretary shall adjust
the payment error rate determined under paragraph (2)(A) as necessary to
take into account any increases in errors that result from the State
agency's having a higher percentage of participating households that
have 1 or more members who are not United States citizens than the
lesser of--
`(I) the percentage of participating households in all States
that have 1 or more members who are not United States citizens;
or
`(II) the percentage of participating households in the State
in fiscal year 1998 that had 1 or more members who were not United
States citizens.
`(B) ADDITIONAL ADJUSTMENTS- For fiscal year 2003 and each fiscal
year thereafter, the Secretary may make such additional adjustments to the
payment error rate determined under paragraph (2)(A) as the Secretary
determines to be consistent with achieving the purposes of this
Act.'.
(b) APPLICABILITY- Except as otherwise provided in the amendments made
by subsection (a), the amendments made by subsection (a) shall apply to fiscal
year 2001 and each fiscal year thereafter.
SEC. 432. IMPROVEMENT OF CALCULATION OF STATE PERFORMANCE
MEASURES.
(a) IN GENERAL- Section 16(c)(8) of the Food Stamp Act of 1977 (7
U.S.C. 2025(c)(8)) is amended--
(1) in subparagraph (B), by striking `180 days after the end of the
fiscal year' and inserting `the first May 31 after the end of the fiscal
year referred to in subparagraph (A)'; and
(2) in subparagraph (C), by striking `30 days thereafter' and
inserting `the first June 30 after the end of the fiscal year referred to in
subparagraph (A)'.
(b) EFFECTIVE DATE- The amendments made by this section take effect on
the date of enactment of this Act.
SEC. 433. BONUSES FOR STATES THAT DEMONSTRATE HIGH
PERFORMANCE.
(a) IN GENERAL- Section 16(c) of the Food Stamp Act of 1977 (7 U.S.C.
2025(c)) (as amended by section 431(a)(6)) is amended by adding at the end the
following:
`(11) HIGH PERFORMANCE BONUS PAYMENTS-
`(A) IN GENERAL- The Secretary shall--
`(i) with respect to fiscal year 2002 and each fiscal year
thereafter, measure the performance of each State agency with respect to
each of the performance measures specified in subparagraph (B);
and
`(ii) in fiscal year 2003 and each fiscal year thereafter,
subject to subparagraphs (C) and (D), make high performance bonus
payments to the State agencies with the highest or most improved
performance with respect to those performance measures.
`(B) PERFORMANCE MEASURES- The performance measures specified in
this subparagraph are--
`(i) the ratio, expressed as a percentage,
that--
`(I) the number of households in the State
that--
`(aa) receive food stamps;
`(bb) have incomes less than 130 percent of the poverty line (as
defined in section 673 of the Community Services Block Grant Act (42 U.S.C.
9902));
`(cc) have annual earnings equal to at least 1000 times the
Federal minimum hourly rate under the Fair Labor Standards Act of 1938 (29
U.S.C. 201 et seq.); and
`(dd) have children under age 18; bears to
`(II) the number of households in the State that meet the
criteria specified in items (bb) through (dd) of subclause (I);
and
`(ii) 4 additional performance measures, established by the
Secretary in consultation with the National Governors Association, the
American Public Human Services Association, and the National Conference
of State Legislatures not later than 180 days after the date of
enactment of this paragraph, of which not less than 1 performance
measure shall relate to provision of timely and appropriate services to
applicants for and recipients of food stamp benefits.
`(C) HIGH PERFORMANCE BONUS PAYMENTS-
`(i) DEFINITION OF CASELOAD- In this subparagraph, the term
`caseload' has the meaning given the term in section
6(o)(6)(A).
`(ii) AMOUNT OF PAYMENTS-
`(I) IN GENERAL- In fiscal year 2003 and each fiscal year
thereafter, the Secretary shall--
`(aa) make 1 high performance bonus payment of $6,000,000 for
each of the 5 performance measures under subparagraph (B); and
`(bb) allocate the high performance bonus payment with respect to
each performance measure in accordance with subclauses (II) and
(III).
`(II) PAYMENTS FOR PERFORMANCE MEASURES- In fiscal year 2003
and each fiscal year thereafter, the Secretary shall allocate, in
accordance with subclause (III), the high performance bonus payment
made for each performance measure under subparagraph (B) among the 6
State agencies with, as determined by the Secretary by
regulation--
`(aa) the greatest improvement in the level of performance with
respect to the performance measure between the 2 most recent years for which the
Secretary determines that reliable data are available;
`(bb) the highest performance in the performance measure for the
most recent year for which the Secretary determines that reliable data are
available; or
`(cc) a combination of the greatest improvement described in item
(aa) and the highest performance described in item (bb).
`(III) ALLOCATION AMONG STATE AGENCIES ELIGIBLE FOR PAYMENTS-
A high performance bonus payment under subclause (II) made for a
performance measure shall be allocated among the 6 State agencies
eligible for the payment in the ratio that--
`(aa) the caseload of each of the 6 State agencies eligible for
the payment; bears to
`(bb) the caseloads of the 6 State agencies eligible for the
payment.
`(D) PROHIBITION ON RECEIPT OF HIGH PERFORMANCE BONUS PAYMENTS BY
STATE AGENCIES SUBJECT TO SANCTIONS- If, for any fiscal year, a State
agency is subject to a sanction under paragraph (1), the State agency
shall not be eligible for a high performance bonus payment for the fiscal
year.
`(E) PAYMENTS NOT SUBJECT TO JUDICIAL REVIEW- A determination by
the Secretary whether, and in what amount, to make a high performance
bonus payment under this paragraph shall not be subject to judicial
review.'.
(b) APPLICABILITY- The amendment made by subsection (a) takes effect
on the date of enactment of this Act.
SEC. 434. EMPLOYMENT AND TRAINING PROGRAM.
(a) LEVELS OF FUNDING- Section 16(h)(1) of the Food Stamp Act of 1977
(7 U.S.C. 2025(h)(1)) is amended--
(1) in subparagraph (A)--
(A) by striking `, to remain available until expended,';
and
(B) by striking clause (vii) and inserting the
following:
`(vii) for each of fiscal years 2002 through 2006, $90,000,000,
to remain available until expended.';
(2) by striking subparagraph (B) and inserting the
following:
`(B) ALLOCATION- Funds made available under subparagraph (A) shall
be made available to and reallocated among State agencies under a
reasonable formula that--
`(i) is determined and adjusted by the Secretary;
and
`(ii) takes into account the number of individuals who are not
exempt from the work requirement under section 6(o).';
and
(3) by striking subparagraphs (E) through (G) and inserting the
following:
`(E) ADDITIONAL ALLOCATIONS FOR STATES THAT ENSURE AVAILABILITY OF
WORK OPPORTUNITIES-
`(i) IN GENERAL- In addition to the allocations under
subparagraph (A), from funds made available under section 18(a)(1), the
Secretary shall allocate not more than $25,000,000 for each of fiscal
years 2002 through 2006 to reimburse a State agency that is eligible
under clause (ii) for the costs incurred in serving food stamp
recipients who--
`(I) are not eligible for an exception under section 6(o)(3);
and
`(II) are placed in and comply with a program described in
subparagraph (B) or (C) of section 6(o)(2).
`(ii) ELIGIBILITY- To be eligible for an additional allocation
under clause (i), a State agency shall--
`(I) exhaust the allocation to the State agency under
subparagraph (A) (including any reallocation that has been made
available under subparagraph (C)); and
`(II) make and comply with a commitment to offer a position in
a program described in subparagraph (B) or (C) of section 6(o)(2) to
each applicant or recipient who--
`(aa) is in the last month of the 6-month period described in
section 6(o)(2);
`(bb) is not eligible for an exception under section
6(o)(3);
`(cc) is not eligible for a waiver under section 6(o)(4);
and
`(dd) is not eligible for an exemption under section
6(o)(6).'.
(b) RESCISSION OF CARRYOVER FUNDS- Notwithstanding any other provision
of law, funds provided under section 16(h)(1)(A) of the Food Stamp Act of 1977
(7 U.S.C. 2025(h)(1)(A)) for any fiscal year before fiscal year 2002 shall
cease to be available on the date of enactment of this Act, unless obligated
by a State agency before that date.
(c) PARTICIPANT EXPENSES- Section 6(d)(4)(I)(i)(I) of the Food Stamp
Act of 1977 (7 U.S.C. 2015(d)(4)(I)(i)(I)) is amended by striking `except that
the State agency may limit such reimbursement to each participant to $25 per
month' and inserting `except that, in the case of each of fiscal years 2002
through 2009, the State agency may limit such reimbursement to each
participant to $50 per month'.
(d) FEDERAL REIMBURSEMENT- Section 16(h)(3) of the Food Stamp Act of
1977 (7 U.S.C. 2025(h)(3)) is amended by striking `except that such total
amount shall not exceed an amount representing $25 per participant per month'
and inserting `except that, in the case of each of fiscal years 2002 through
2009, such total amount shall not exceed an amount representing $50 per
participant per month'.
(e) EFFECTIVE DATE- The amendments made by this section take effect on
the date of enactment of this Act.
SEC. 435. REAUTHORIZATION OF FOOD STAMP PROGRAM AND FOOD DISTRIBUTION
PROGRAM ON INDIAN RESERVATIONS.
(a) REDUCTIONS IN PAYMENTS FOR ADMINISTRATIVE COSTS- Section 16(k)(3)
of the Food Stamp Act of 1977 (7 U.S.C. 2025(k)(3)) is amended--
(1) in the first sentence of subparagraph (A), by striking `2002'
and inserting `2006'; and
(2) in subparagraph (B)(ii), by striking `2002' and inserting
`2006'.
(b) CASH PAYMENT PILOT PROJECTS- Section 17(b)(1)(B)(vi) of the Food
Stamp Act of 1977 (7 U.S.C. 2026(b)(1)(B)(vi)) is amended by striking `2002'
and inserting `2006'.
(c) GRANTS TO IMPROVE FOOD STAMP PARTICIPATION- Section 17(i)(1)(A) of
the Food Stamp Act of 1977 (7 U.S.C. 2026(i)(1)(A)) is amended in the first
sentence by striking `2002' and inserting `2006'.
(d) AUTHORIZATION OF APPROPRIATIONS- Section 18(a)(1) of the Food
Stamp Act of 1977 (7 U.S.C. 2027(a)(1)) is amended in the first sentence by
striking `2002' and inserting `2006'.
SEC. 436. COORDINATION OF PROGRAM INFORMATION EFFORTS.
Section 16(k)(5) of the Food Stamp Act of 1977 (7 U.S.C. 2025(k)(5))
is amended--
(1) in subparagraph (A), by striking `No funds' and inserting
`Except as provided in subparagraph (C), no funds'; and
(2) by adding at the end the following:
`(C) FOOD STAMP INFORMATIONAL ACTIVITIES- Subparagraph (A) shall
not apply to any funds or expenditures described in clause (i) or (ii) of
subparagraph (B) used to pay the costs of any activity that is eligible
for reimbursement under subsection (a)(4).'.
SEC. 437. EXPANDED GRANT AUTHORITY.
Section 17(a)(1) of the Food Stamp Act of 1977 (7 U.S.C. 2026(a)(1))
is amended--
(1) by striking `, by way of making contracts with or grants to
public or private organizations or agencies,' and inserting `enter into
contracts with or make grants to public or private organizations or agencies
under this section to'; and
(2) by adding at the end the following: `The waiver authority of the
Secretary under subsection (b) shall extend to all contracts and grants
under this section.'.
SEC. 438. ACCESS AND OUTREACH PILOT PROJECTS.
Section 17 of the Food Stamp Act of 1977 (7 U.S.C. 2026) is amended by
striking subsection (h) and inserting the following:
`(h) ACCESS AND OUTREACH PILOT PROJECTS-
`(1) IN GENERAL- The Secretary shall make grants to State agencies
and other entities to pay the Federal share of the eligible costs of
projects to improve--
`(A) access by eligible individuals to benefits under the food
stamp program; or
`(B) outreach to individuals eligible for those
benefits.
`(2) FEDERAL SHARE- The Federal share shall be 75
percent.
`(3) TYPES OF PROJECTS- To be eligible for a grant under this
subsection, a project may consist of--
`(A) establishing a single site at which individuals may apply
for--
`(i) benefits under the food stamp program; and
`(ii)(I) supplemental security income benefits under title XVI
of the Social Security Act (42 U.S.C. 1381 et seq.);
`(II) benefits under the medicaid program under title XIX of the
Social Security Act (42 U.S.C. 1396 et seq.);
`(III) benefits under the State children's health insurance
program under title XXI of the Social Security Act (42 U.S.C. 1397aa et
seq.);
`(IV) benefits under the special supplemental nutrition program
for women, infants, and children under section 17 of the Child Nutrition
Act of 1966 (42 U.S.C. 1786); or
`(V) benefits under such other programs as the Secretary
determines to be appropriate;
`(B) developing forms that allow an individual to apply for more
than 1 of the programs referred to in subparagraph (A);
`(C) dispatching State agency personnel to conduct outreach and
enroll individuals in the food stamp program and other programs in
nontraditional venues (such as shopping malls, schools, community centers,
county fairs, clinics, food banks, and job training
centers);
`(D) developing systems to enable increased participation in the
provision of benefits under the food stamp program through farmers'
markets, roadside stands, and other community-supported agriculture
programs, including wireless electronic benefit transfer systems and other
systems appropriate to open-air settings where farmers and other vendors
sell directly to consumers;
`(E) allowing individuals to submit applications for the food
stamp program by means of the telephone or the Internet, in particular
individuals who live in rural areas, elderly individuals, and individuals
with disabilities;
`(F) encouraging consumption of fruit and vegetables by developing
a cost-effective system for providing discounts for purchases of fruit and
vegetables made through use of electronic benefit transfer
cards;
`(G) reducing barriers to participation by individuals, with
emphasis on working families, eligible immigrants, elderly individuals,
and individuals with disabilities;
`(H) developing training materials, guidebooks, and other
resources to improve access and outreach;
`(I) conforming verification practices under the food stamp
program with verification practices under other assistance programs;
and
`(J) such other activities as the Secretary determines to be
appropriate.
`(A) IN GENERAL- The Secretary shall develop criteria for
selecting recipients of grants under this subsection that include the
consideration of--
`(i) the demonstrated record of a State agency or other entity
in serving low-income individuals;
`(ii) the ability of a State agency or other entity to reach
hard-to-serve populations;
`(iii) the level of innovative proposals in the application of a
State agency or other entity for a grant; and
`(iv) the development of partnerships between public and private
sector entities and linkages with the community.
`(B) PREFERENCE- In selecting recipients of grants under paragraph
(1), the Secretary shall provide a preference to any applicant that
consists of a partnership between a State and a private entity, such
as--
`(ii) a community-based organization;
`(iv) a publicly-funded health clinic;
`(v) a publicly-funded day care center; and
`(vi) a nonprofit health or welfare agency.
`(C) GEOGRAPHICAL DISTRIBUTION OF RECIPIENTS-
`(i) IN GENERAL- Subject to clause (ii), the Secretary shall
select, from all eligible applications received, at least 1 recipient to
receive a grant under this subsection from--
`(I) each region of the Department of Agriculture
administering the food stamp program; and
`(II) each additional rural or urban area that the Secretary
determines to be appropriate.
`(ii) EXCEPTION- The Secretary shall not be required to select
grant recipients under clause (i) to the extent that the Secretary
determines that an insufficient number of eligible grant applications
has been received.
`(5) PROJECT EVALUATIONS-
`(A) IN GENERAL- The Secretary shall conduct evaluations of
projects funded by grants under this subsection.
`(B) LIMITATION- Not more than 10 percent of funds made available
to carry out this subsection shall be used for project evaluations
described in subparagraph (A).
`(6) MAINTENANCE OF EFFORT- A State agency or other entity shall
provide assurances to the Secretary that funds provided to the State agency
or other entity under this subsection will be used only to supplement, not
to supplant, the amount of Federal, State, and local funds otherwise
expended to carry out access and outreach activities in the State under this
Act.
`(7) FUNDING- There is authorized to be appropriated to carry out
this subsection $3,000,000 for the period of fiscal years 2003 through
2005.'.
SEC. 439. CONSOLIDATED BLOCK GRANTS AND ADMINISTRATIVE FUNDS.
(a) CONSOLIDATED FUNDING- Section 19(a)(1) of the Food Stamp Act of
1977 (7 U.S.C. 2028(a)(1)) is amended--
(1) in subparagraph (A)--
(A) by striking `the Commonwealth of Puerto Rico' and inserting
`governmental entities specified in subparagraph (D)';
(B) in clause (ii), by striking `and' at the end;
and
(C) by striking clause (iii) and all that follows and inserting
the following:
`(iii) for fiscal year 2002, $1,356,000,000; and
`(iv) for each of fiscal years 2003 through 2006, the amount
provided in clause (iii), as adjusted by the percentage by which the thrifty
food plan has been adjusted under section 3(o)(4) between June 30, 2001, and
June 30 of the immediately preceding fiscal year;
to pay the expenditures for nutrition assistance programs for needy
persons as described in subparagraphs (B) and (C).';
(2) in subparagraph (B)--
(A) by striking `(B) The' and inserting the
following:
`(B) MAXIMUM PAYMENTS TO COMMONWEALTH OF PUERTO RICO-
(B) by inserting `of Puerto Rico' after `Commonwealth' each place
it appears; and
(C) by adding at the end the following:
`(ii) EXCEPTION FOR EXPENDITURES FOR CERTAIN SYSTEMS-
Notwithstanding subparagraph (A) and clause (i), the Commonwealth of
Puerto Rico may spend not more than $6,000,000 of the amount required to
be paid to the Commonwealth for fiscal year 2002 under subparagraph (A)
to pay 100 percent of the costs of--
`(I) upgrading and modernizing the electronic data processing
system used to carry out nutrition assistance programs for needy
persons;
`(II) implementing systems to simplify the determination of
eligibility to receive that nutrition assistance;
and
`(III) operating systems to deliver benefits through
electronic benefit transfers.'; and
(3) by adding at the end the following:
`(C) AMERICAN SAMOA- For each fiscal year, the Secretary shall
reserve 0.4 percent of the funds made available under subparagraph (A) for
payment to American Samoa to pay 100 percent of the expenditures for a
nutrition assistance program extended under section 601(c) of Public Law
96-597 (48 U.S.C. 1469d(c)).
`(D) GOVERNMENTAL ENTITY- A governmental entity specified in this
subparagraph is--
`(i) the Commonwealth of Puerto Rico; and
`(ii) for fiscal year 2003 and each fiscal year thereafter,
American Samoa.'.
(b) REPORT TO CONGRESS AND INCREASED AUTHORIZATION-
(1) IN GENERAL- Not later than 270 days after the date of enactment
of this Act, the Comptroller General of the United States shall develop and
submit to Congress a report that--
(A) describes the similarities and differences (in terms of
program administration, rules, benefits, and requirements)
between--
(i) the food stamp program under the Food Stamp Act of 1977 (7
U.S.C. 2011 et seq.), other than section 19 of that Act (7 U.S.C. 2028);
and
(ii) the program to provide assistance to Puerto Rico under
section 19 of that Act (as in effect on the day before the date of
enactment of this Act);
(B) specifies the costs and savings associated with each
similarity and difference; and
(C) states the recommendation of the Comptroller General as to
whether additional funding should be provided to carry out section 19 of
that Act.
(2) INCREASED AUTHORIZATION- Effective on the date of submission to
Congress of the report under paragraph (1), there is authorized to be
appropriated to carry out section 19 of the Food Stamp Act of 1977 (7 U.S.C.
2028) (in addition to amounts made available to carry out that section under
law other than this subsection) $50,000,000 for each fiscal year.
(3) LIMITATION- No amounts may be made available to carry out
paragraph (2) unless specifically provided by an appropriation
Act.
(c) CONFORMING AMENDMENT- Section 24 of the Food Stamp Act of 1977 (7
U.S.C. 2033) is repealed.
(1) IN GENERAL- Except as provided in paragraph (2), the amendments
made by this section take effect on October 1, 2002.
(2) EXCEPTION FOR EXPENDITURES FOR CERTAIN SYSTEMS- The amendments
made by subsection (a)(2) take effect on the date of enactment of this
Act.
SEC. 440. ASSISTANCE FOR COMMUNITY FOOD PROJECTS.
Section 25 of the Food Stamp Act of 1977 (7 U.S.C. 2034) is
amended--
(1) in subsection (b)(2)(B), by striking `2002' and inserting
`2006';
(A) in paragraph (3), by striking `or' at the end;
and
(B) by striking paragraph (4) and inserting the
following:
`(4) encourage long-term planning activities, and multisystem,
interagency approaches with multistakeholder collaborations, that build the
long-term capacity of communities to address the food and agriculture
problems of the communities, such as food policy councils and food planning
associations; or
`(5) meet, as soon as practicable through the provision of grants of
not to exceed $25,000 each, specific neighborhood, local, or State food and
agriculture needs, including needs for--
`(A) infrastructure improvement and development (including the
purchase of equipment necessary for the production, handling, or marketing
of locally produced food);
`(B) planning for long-term solutions; or
`(C) the creation of innovative marketing activities that mutually
benefit farmers and low-income consumers.'; and
(3) in subsection (e)(1), by striking `50' and inserting
`75'.
SEC. 441. AVAILABILITY OF COMMODITIES FOR THE EMERGENCY FOOD ASSISTANCE
PROGRAM.
(a) IN GENERAL- Section 27 of the Food Stamp Act of 1977 (7 U.S.C.
2036) is amended--
(A) by striking `1997 through 2002' and inserting `2002 through
2006'; and
(B) by striking `$100,000,000' and inserting `$110,000,000';
and
(2) by adding at the end the following:
`(c) USE OF FUNDS FOR RELATED COSTS-
`(1) IN GENERAL- For each of fiscal years 2002 through 2006, the
Secretary shall use $10,000,000 of the funds made available under subsection
(a) to pay the direct and indirect costs of States relating to the
processing, storing, transporting, and distributing to eligible recipient
agencies of--
`(A) commodities purchased by the Secretary under subsection (a);
and
`(B) commodities acquired from other sources, including
commodities acquired by gleaning (as defined in section 111(a) of the
Hunger Prevention Act of 1988 (7 U.S.C. 612c note; Public Law
100-435)).
`(2) ALLOCATION OF FUNDS- The amount required to be used in
accordance with paragraph (1) shall be allocated in accordance with section
204(a) of the Emergency Food Assistance Act of 1983 (7 U.S.C.
7508(a)).'.
(b) EFFECTIVE DATE- The amendments made by this section take effect on
the date of enactment of this Act.
SEC. 442. USE OF APPROVED FOOD SAFETY TECHNOLOGY.
(a) IN GENERAL- Section 27 of the Food Stamp Act of 1977 (7 U.S.C.
2036) (as amended by section 441) is amended by adding at the end the
following:
`(d) USE OF APPROVED FOOD SAFETY TECHNOLOGY-
`(1) IN GENERAL- In acquiring commodities for distribution through a
program specified in paragraph (2), the Secretary shall not prohibit the use
of any technology to improve food safety that has been approved by the
Secretary or the Secretary of Health and Human Services.
`(2) PROGRAMS- A program referred to in paragraph (1) is a program
authorized under--
`(B) the Agriculture and Consumer Protection Act of 1973 (7 U.S.C.
612c note; Public Law 93-86);
`(C) the Emergency Food Assistance Act of 1983 (7 U.S.C. 7501 et
seq.);
`(D) the Richard B. Russell National School Lunch Act (42 U.S.C.
1751 et seq.); or
`(E) the Child Nutrition Act of 1966 (42 U.S.C. 1771 et
seq.).'.
(b) EFFECTIVE DATE- The amendment made by this section takes effect on
the date of enactment of this Act.
SEC. 443. INNOVATIVE PROGRAMS FOR ADDRESSING COMMON COMMUNITY
PROBLEMS.
(a) IN GENERAL- The Food Stamp Act of 1977 (7 U.S.C. 2011 et seq.) is
amended by adding at the end the following:
`SEC. 28. INNOVATIVE PROGRAMS FOR ADDRESSING COMMON COMMUNITY
PROBLEMS.
`(a) IN GENERAL- The Secretary shall offer to enter into a contract
with a nongovernmental organization described in subsection (b) to coordinate
with Federal agencies, States, political subdivisions, and nongovernmental
organizations (referred to in this section as `targeted entities') to develop,
and recommend to the targeted entities, innovative programs for addressing
common community problems, including loss of farms, rural poverty, welfare
dependency, hunger, the need for job training, juvenile crime prevention, and
the need for self-sufficiency by individuals and communities.
`(b) NONGOVERNMENTAL ORGANIZATION- The nongovernmental organization
referred to in subsection (a)--
`(1) shall be selected on a competitive basis; and
`(2) as a condition of entering into the contract--
`(A) shall be experienced in working with targeted entities, and
in organizing workshops that demonstrate programs to targeted
entities;
`(B) shall be experienced in identifying programs that effectively
address problems described in subsection (a) that can be implemented by
other targeted entities;
`(i) to contribute in-kind resources toward the establishment
and maintenance of programs described in subsection (a);
and
`(ii) to provide to targeted entities, free of charge,
information on the programs;
`(D) shall be experienced in, and capable of, receiving
information from, and communicating with, targeted entities throughout the
United States; and
`(E) shall be experienced in operating a national information
clearinghouse that addresses 1 or more of the problems described in
subsection (a).
`(c) AUDITS- The Secretary shall establish auditing procedures and
otherwise ensure the effective use of funds made available under this
section.
`(1) IN GENERAL- Not later than 30 days after the date of enactment
of this section, and on October 1, 2002, out of any funds in the Treasury
not otherwise appropriated, the Secretary of the Treasury shall transfer to
the Secretary of Agriculture to carry out this section $200,000, to remain
available until expended.
`(2) RECEIPT AND ACCEPTANCE- The Secretary shall be entitled to
receive, shall accept, and shall use to carry out this section the funds
transferred under paragraph (1), without further appropriation.'.
(b) EFFECTIVE DATE- The amendment made by this section takes effect on
the date of enactment of this Act.
SEC. 444. REPORT ON USE OF ELECTRONIC BENEFIT TRANSFER
SYSTEMS.
Not later than 1 year after the date of enactment of this Act, the
Secretary of Agriculture shall submit to Congress a report on--
(1) difficulties relating to use of electronic benefit transfer
systems in issuance of food stamp benefits under the Food Stamp Act of 1977
(7 U.S.C. 2011 et seq.);
(2) the extent to which there exists fraud, and the types of fraud
that exist, in use of the electronic benefit transfer systems;
and
(3) the efforts being made by the Secretary of Agriculture,
retailers, electronic benefit transfer system contractors, and States to
address the problems described in paragraphs (1) and (2).
SEC. 445. VITAMIN AND MINERAL SUPPLEMENTS.
(a) IN GENERAL- Section 3(g)(1) of the Food Stamp Act of 1977 (7
U.S.C. 2012(g)(1)) is amended by striking `or food product' and inserting `,
food product, or dietary supplement that provides exclusively 1 or more
vitamins or minerals'.
(1) IN GENERAL- Not later than April 1, 2003, the Secretary of
Agriculture shall enter into a contract with a scientific research
organization to study and develop a report on the technical issues, economic
impacts, and health effects associated with allowing individuals to use
benefits under the Food Stamp Act of 1977 (7 U.S.C. 2011 et seq.) to
purchase dietary supplements that provide exclusively 1 or more vitamins or
minerals (referred to in this subsection as `vitamin-mineral
supplements').
(2) REQUIRED ELEMENTS- At a minimum, the study shall
examine--
(A) the extent to which problems arise in the purchase of
vitamin-mineral supplements with electronic benefit transfer
cards;
(B) the extent of any difficulties in distinguishing
vitamin-mineral supplements from herbal and botanical supplements for
which food stamp benefits may not be used;
(C) whether participants in the food stamp program spend more on
vitamin-mineral supplements than nonparticipants;
(D) to what extent vitamin-mineral supplements are substituted for
other foods purchased with use of food stamp benefits;
(E) the proportion of the average food stamp allotment that is
being used to purchase vitamin-mineral supplements; and
(F) the extent to which the quality of the diets of participants
in the food stamp program has changed as a result of allowing participants
to use food stamp benefits to purchase vitamin-mineral
supplements.
(3) REPORT- The report required under paragraph (1) shall be
submitted to the Secretary of Agriculture not later than 2 years after the
date on which the contract referred to in that paragraph is entered
into.
(4) AUTHORIZATION OF APPROPRIATIONS- There is authorized to be
appropriated $3,000,000 to carry out this subsection.
Subtitle B--Miscellaneous Provisions
SEC. 451. REAUTHORIZATION OF COMMODITY PROGRAMS.
(a) COMMODITY DISTRIBUTION PROGRAM- Section 4(a) of the Agriculture
and Consumer Protection Act of 1973 (7 U.S.C. 612c note; Public Law 93-86) is
amended in the first sentence by striking `2002' and inserting `2006'.
(b) COMMODITY SUPPLEMENTAL FOOD PROGRAM- Section 5 of the Agriculture
and Consumer Protection Act of 1973 (7 U.S.C. 612c note; Public Law 93-86) is
amended--
(1) by striking subsection (a) and inserting the
following:
`(a) GRANTS PER ASSIGNED CASELOAD SLOT-
`(1) IN GENERAL- In carrying out the program under section 4
(referred to in this section as the `commodity supplemental food program'),
for each of fiscal years 2003 through 2006, the Secretary shall provide to
each State agency from funds made available to carry out that section
(including any such funds remaining available from the preceding fiscal
year), a grant per assigned caseload slot for administrative costs incurred
by the State agency and local agencies in the State in operating the
commodity supplemental food program.
`(A) FISCAL YEAR 2003- For fiscal year 2003, the amount of each
grant per caseload slot shall be equal to $50, adjusted by the percentage
change between--
`(i) the value of the State and local government price index, as
published by the Bureau of Economic Analysis of the Department of
Commerce, for the 12-month period ending June 30, 2001;
and
`(ii) the value of that index for the 12-month period ending
June 30, 2002.
`(B) FISCAL YEARS 2004 THROUGH 2006- For each of fiscal years 2004
through 2006, the amount of each grant per caseload slot shall be equal to
the amount of the grant per caseload slot for the preceding fiscal year,
adjusted by the percentage change between--
`(i) the value of the State and local government price index, as
published by the Bureau of Economic Analysis of the Department of
Commerce, for the 12-month period ending June 30 of the second preceding
fiscal year; and
`(ii) the value of that index for the 12-month period ending
June 30 of the preceding fiscal year.';
(2) in subsection (d)(2), by striking `2002' each place it appears
and inserting `2006'; and
(3) by striking subsection (l).
(c) DISTRIBUTION OF SURPLUS COMMODITIES TO SPECIAL NUTRITION PROJECTS-
Section 1114(a)(2)(A) of the Agriculture and Food Act of 1981 (7 U.S.C.
1431e(2)(A)) is amended in the first sentence by striking `2002' and inserting
`2006'.
(d) EMERGENCY FOOD ASSISTANCE- Section 204(a)(1) of the Emergency Food
Assistance Act of 1983 (7 U.S.C. 7508(a)(1)) is amended in the first
sentence--
(1) by striking `2002' and inserting `2006';
(2) by striking `administrative'; and
(3) by inserting `storage,' after `processing,'.
SEC. 452. PARTIAL RESTORATION OF BENEFITS TO LEGAL IMMIGRANTS.
(a) RESTORATION OF BENEFITS TO ALL QUALIFIED ALIEN CHILDREN-
(1) IN GENERAL- Section 402(a)(2)(J) of the Personal Responsibility
and Work Opportunity Reconciliation Act of 1996 (8 U.S.C. 1612(a)(2)(J)) is
amended by striking `who' and all that follows through `is under' and
inserting `who is under'.
(2) CONFORMING AMENDMENTS-
(A) Section 403(c)(2) of the Personal Responsibility and Work
Opportunity Reconciliation Act of 1996 (8 U.S.C. 1613(c)(2)) is amended by
adding at the end the following:
`(L) Assistance or benefits under the Food Stamp Act of 1977 (7
U.S.C. 2011 et seq.).'.
(B) Section 421(d) of the Personal Responsibility and Work
Opportunity Reconciliation Act of 1996 (8 U.S.C. 1631(d)) is amended by
adding at the end the following:
`(3) This section shall not apply to assistance or benefits under
the Food Stamp Act of 1977 (7 U.S.C. 2011 et seq.) to the extent that a
qualified alien is eligible under section 402(a)(2)(J).'.
(C) Section 5(i)(2)(E) of the Food Stamp Act of 1977 (7 U.S.C.
2014(i)(2)(E)) is amended by inserting before the period at the end the
following: `, or to any alien who is under 18 years of age'.
(3) APPLICABILITY- The amendments made by this subsection shall
apply to fiscal year 2004 and each fiscal year thereafter.
(b) WORK REQUIREMENT FOR LEGAL IMMIGRANTS-
(1) WORKING IMMIGRANT FAMILIES- Section 402(a)(2)(B)(ii)(I) of the
Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (8
U.S.C. 1612(a)(2)(B)(ii)(I)) is amended by striking `40' and inserting `40
(or 16, in the case of the specified Federal program described in paragraph
(3)(B))'.
(2) CONFORMING AMENDMENTS-
(A) Section 213A(a)(3)(A) of the Immigration and Nationality Act
(8 U.S.C. 1183a(a)(3)(A)) is amended by striking `40' and inserting `40
(or 16, in the case of the specified Federal program described in section
402(a)(3)(B) of the Personal Responsibility and Work Opportunity
Reconciliation Act of 1996 (8 U.S.C. 1612(a)(3)(B)))'.
(B) Section 421(b)(2)(A) of the Personal Responsibility and Work
Opportunity Reconciliation Act of 1996 (8 U.S.C. 1631(b)(2)(A)) is amended
by striking `40' and inserting `40 (or 16, in the case of the specified
Federal program described in section 402(a)(3)(B))'.
(c) RESTORATION OF BENEFITS TO REFUGEES AND ASYLEES- Section 402(a)(2)
of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996
(8 U.S.C. 1612(a)(2)) is amended--
(1) in subparagraph (A), by striking `programs described in
paragraph (3)' and inserting `program described in paragraph (3)(A)';
and
(2) by adding at the end the following:
`(L) FOOD STAMP EXCEPTION FOR REFUGEES AND ASYLEES- With respect
to eligibility for benefits for the specified Federal program described in
paragraph (3)(B), paragraph (1) shall not apply to an alien with respect
to which an action described in subparagraph (A) was taken and was not
revoked.'.
(d) RESTORATION OF BENEFITS TO DISABLED ALIENS- Section 402(a)(2)(F)
of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996
(8 U.S.C. 1612(a)(2)(F)) is amended by striking `(i) was' and all that follows
through `(II) in the case' and inserting the following:
`(i) in the case of the specified Federal program described in
paragraph (3)(A)--
`(I) was lawfully residing in the United States on August 22,
1996; and
`(II) is blind or disabled, as defined in paragraph (2) or (3)
of section 1614(a) of the Social Security Act (42 U.S.C. 1382c(a));
and
SEC. 453. COMMODITIES FOR SCHOOL LUNCH PROGRAMS.
(a) IN GENERAL- Section 6(e)(1)(B) of the Richard B. Russell National
School Lunch Act (42 U.S.C. 1755(e)(1)(B)) is amended by striking `2001' and
inserting `2003'.
(b) EFFECTIVE DATE- The amendment made by this section takes effect on
the date of enactment of this Act.
SEC. 454. ELIGIBILITY FOR FREE AND REDUCED PRICE MEALS.
(a) IN GENERAL- Section 9(b) of the Richard B. Russell National School
Lunch Act (42 U.S.C. 1758(b)) is amended by adding at the end the
following:
`(7) EXCLUSION OF CERTAIN MILITARY HOUSING ALLOWANCES- For each of
fiscal years 2002 and 2003, the amount of a basic allowance provided under
section 403 of title 37, United States Code, on behalf of a member of a
uniformed service for housing that is acquired or constructed under
subchapter IV of chapter 169 of title 10, United States Code, or any related
provision of law, shall not be considered to be income for the purpose of
determining the eligibility of a child who is a member of the household of
the member of a uniformed service for free or reduced price lunches under
this Act.'.
(b) EFFECTIVE DATE- The amendment made by this section takes effect on
the date of enactment of this Act.
SEC. 455. ELIGIBILITY FOR ASSISTANCE UNDER THE SPECIAL SUPPLEMENTAL
NUTRITION PROGRAM FOR WOMEN, INFANTS, AND CHILDREN.
(a) IN GENERAL- Section 17(d)(2)(B)(i) of the Child Nutrition Act of
1966 (42 U.S.C. 1786(d)(2)(B)(i)) is amended--
(1) by striking `basic allowance for housing' and inserting the
following: `basic allowance--
(2) by striking `and' at the end and inserting `or'; and
(3) by adding at the end the following:
`(II) provided under section 403 of title 37, United States
Code, for housing that is acquired or constructed under subchapter IV
of chapter 169 of title 10, United States Code, or any related
provision of law; and'.
(b) EFFECTIVE DATE- The amendments made by this section take effect on
the date of enactment of this Act.
SEC. 456. REPORT ON CONVERSION OF WIC PROGRAM INTO AN INDIVIDUAL
ENTITLEMENT PROGRAM.
(a) FINDINGS- Congress finds that the special supplemental nutrition
program for woman, infants, and children established by section 17 of the
Child Nutrition Act of 1966 (42 U.S.C. 1786) (referred to in this section as
the `WIC program')--
(1) safeguards the health of low-income pregnant, postpartum, and
breast-feeding women, infants, and children up to 5 years of age who are at
nutritional risk through the delivery of individualized food packages,
nutrition education, and health referrals;
(2) is associated with a variety of desirable outcomes, including
lower incidence of infant mortality, reduced prevalence of very low birth
weights, improved nutrient intake among children, improved cognitive
development among children, and lower Medicaid costs for women who
participate;
(3) is recognized generally as a leading national health and
nutrition program;
(4) as a discretionary program, can have inappropriate funding
because funding levels must be determined early in the year by the President
and the Committees on Appropriations of the House of Representatives and the
Senate (referred to in this subsection as the `Committees');
(5) can have funding shortfalls in some years because the economy
worsens between the time that funding levels are established and the fiscal
year is underway;
(6) may have to deny service or reduce benefits to eligible women,
infants, and children in some States as a result of these funding
shortfalls;
(7) may be provided with more funding than is required in those
years in which the economy improves between the time that funding levels are
established and the fiscal year is underway, with the result that the
President and the Committees will have committed funds to the WIC program
that could have been devoted to other priorities; and
(8) would not have this funding uncertainty if the WIC program were
an entitlement program that provided benefits to every eligible woman,
infant, and child seeking benefits.
(b) REPORT- Not later than December 31, 2002, the Secretary of
Agriculture shall submit to the Committee on Education and the Workforce of
the House of Representatives and the Committee on Agriculture, Nutrition and
Forestry of the Senate a report that analyzes the conversion of the WIC
program from a discretionary program into an individual entitlement
program.
(c) CONTENTS- The report shall--
(1) analyze the conversion of the WIC program into an individual
entitlement program, rather than a capped entitlement program for
States;
(2) analyze the conversion using at least 3 separate scenarios,
including--
(A) 1 scenario under which the costs to the Federal Government
approximate current projected funding levels;
(B) 1 scenario under which the costs to the Federal Government
approximate current projected funding levels plus 5 percent;
and
(C) 1 scenario under which the costs to the Federal Government
approximate current projected funding levels plus 7 percent;
and
(A) the levels at which, and manner by which, States will be
reimbursed for food package costs and administrative costs;
(B) how current cost containment savings will be
preserved;
(C) how reimbursement rates will be adjusted annually to reflect
inflation or other factors affecting food prices;
(D) how program benefits and services will be affected by the
conversion to an individual entitlement program; and
(E) any other issues that arise from converting the WIC program to
an individual entitlement program, as determined by the Secretary of
Agriculture.
(d) CONSULTATION- In preparing the report, the Secretary of
Agriculture shall consult with--
(1) the Committee on Education and the Workforce of the House of
Representatives;
(2) the Committee on Agriculture, Nutrition and Forestry of the
Senate;
(3) membership organizations representing State directors and local
agencies administering the WIC program;
(4) Governors and other State officials;
(5) research and policy organizations that have a history of
carrying out activities on issues affecting the WIC program; and
(6) advocacy organizations representing the needs of the population
that is eligible to participate in the WIC program.
(e) FUNDING- Notwithstanding any other provision of law, the Secretary
shall carry out this section using funds made available for necessary expenses
to carry out the WIC program.
SEC. 457. COMMODITY DONATIONS.
The Commodity Distribution Reform Act and WIC Amendments of 1987 (7
U.S.C. 612c note; Public Law 100-237) is amended--
(1) by redesignating sections 17 and 18 as sections 18 and 19,
respectively; and
(2) by inserting after section 16 the following:
`SEC. 17. COMMODITY DONATIONS.
`(a) IN GENERAL- Notwithstanding any other provision of law concerning
commodity donations, any commodities acquired in the conduct of the operations
of the Commodity Credit Corporation and any commodities acquired under section
32 of the Act of August 24, 1935 (7 U.S.C. 612c), to the extent that the
commodities are in excess of the quantities of commodities needed to carry out
other authorized activities of the Commodity Credit Corporation and the
Secretary (including any quantity specifically reserved for a specific
purpose), may be used for any program authorized to be carried out by the
Secretary that involves the acquisition of commodities for use in a domestic
feeding program, including any program conducted by the Secretary that
provides commodities to individuals in cases of hardship.
`(b) PROGRAMS- A program described in subsection (a) includes a
program authorized by--
`(1) the Emergency Food Assistance Act of 1983 (7 U.S.C. 7501 et
seq.);
`(2) the Richard B. Russell National School Lunch Act (42 U.S.C.
1751 et seq.);
`(3) the Child Nutrition Act of 1966 (42 U.S.C. 1771 et
seq.);
`(4) the Older Americans Act of 1965 (42 U.S.C. 3001 et seq.);
or
`(5) such other laws as the Secretary determines to be
appropriate.'.
SEC. 458. PURCHASES OF LOCALLY PRODUCED FOODS.
(a) IN GENERAL- The Secretary of Agriculture shall--
(1) encourage institutions participating in the national school
lunch program authorized under the Richard B. Russell National School Lunch
Act (42 U.S.C. 1751 et seq.) and the school breakfast program established by
section 4 of the Child Nutrition Act of 1966 (42 U.S.C. 1773) to purchase,
in addition to other food purchases, locally produced foods for school meal
programs to the maximum extent practicable and appropriate;
(2) advise institutions participating in a program described in
paragraph (1) of the policy described in that paragraph and post information
concerning the policy on the website maintained by the Secretary;
and
(3) in accordance with requirements established by the Secretary,
provide start-up grants to not more than 200 institutions to defray the
initial costs of equipment, materials, and storage facilities, and similar
costs, incurred in carrying out the policy described in paragraph
(1).
(b) AUTHORIZATION OF APPROPRIATIONS-
(1) IN GENERAL- There is authorized to be appropriated to carry out
this section $400,000 for each of fiscal years 2002 through 2006.
(2) LIMITATION- No amounts may be made available to carry out this
section unless specifically provided by an appropriation Act.
SEC. 459. SENIORS FARMERS' MARKET NUTRITION PROGRAM.
(a) ESTABLISHMENT- The Secretary of Agriculture shall carry out and
expand a seniors farmers' market nutrition program.
(b) PROGRAM PURPOSE- The purpose of the seniors farmers' market
nutrition program is to provide to low-income seniors resources in the form of
fresh, nutritious, unprepared, locally grown fruits, vegetables, and herbs
from farmers' markets, roadside stands, and community-supported agriculture
programs.
(c) REGULATIONS- The Secretary of Agriculture may promulgate such
regulations as the Secretary considers necessary to carry out the seniors
farmers' market nutrition program under this section.
(1) IN GENERAL- Not later than 30 days after the date of enactment
of this Act, and on October 1, 2002, and each October 1 thereafter through
October 1, 2005, out of any funds in the Treasury not otherwise
appropriated, the Secretary of the Treasury shall transfer to the Secretary
of Agriculture to carry out this section $15,000,000.
(2) RECEIPT AND ACCEPTANCE- The Secretary of Agriculture shall be
entitled to receive, shall accept, and shall use to carry out this section
the funds transferred under paragraph (1), without further
appropriation.
(e) AUTHORITY- The authority provided by this section is in addition
to, and not in lieu of, the authority of the Secretary of Agriculture to carry
out any similar program under the Commodity Credit Corporation Charter Act (15
U.S.C. 714 et seq.).
SEC. 460. FARMERS' MARKET NUTRITION PROGRAM.
Section 17(m)(9) of the Child Nutrition Act of 1966 (42 U.S.C.
1786(m)(9)) is amended--
(1) by striking `(9)(A) There' and inserting the
following:
`(i) AUTHORIZATION OF APPROPRIATIONS- There';
and
(2) in subparagraph (A), by adding at the end the
following:
`(I) IN GENERAL- Not later than 30 days after the date of
enactment of the Agriculture, Conservation, and Rural Enhancement Act
of 2001, out of any funds in the Treasury not otherwise appropriated,
the Secretary of the Treasury shall transfer to the Secretary to carry
out this subsection $15,000,000.
`(II) RECEIPT AND ACCEPTANCE- The Secretary shall be entitled
to receive, shall accept, and shall use to carry out this subsection
the funds transferred under subclause (I), without further
appropriation.'.
SEC. 461. FRUIT AND VEGETABLE PILOT PROGRAM.
(a) IN GENERAL- In the school year beginning July 2002, the Secretary
of Agriculture shall use funds made available under section 32 of the Act of
August 24, 1935 (7 U.S.C. 612c), to conduct a pilot program to make available
to students, in 25 elementary or secondary schools in each of 4 States, and in
elementary or secondary schools on 1 Indian reservation, free fruits and
vegetables throughout the school day in--
(3) another designated room of the school.
(b) PUBLICITY- A school that participates in the pilot program shall
widely publicize within the school the availability of free fruits and
vegetables under the pilot program.
(c) EVALUATION OF PILOT PROGRAM-
(1) IN GENERAL- Not later than 1 year after the implementation of
the pilot program required by subsection (a), the Secretary (acting through
the Economic Research Service) shall submit to the Committee on Education
and the Workforce of the House of Representatives and the Committee on
Agriculture, Nutrition, and Forestry of the Senate an evaluation of the
results of the pilot program to determine--
(A) whether students took advantage of the pilot
program;
(B) whether interest in the pilot program increased or lessened
over time;
(C) what effect, if any, the pilot program had on vending machine
sales; and
(D) what effect, if any, the pilot program had on the sale of
meals served under the Child Nutrition Act of 1966 (42 U.S.C. 1771 et
seq.) and the Richard B. Russell National School Lunch Act (42 U.S.C. 1751
et seq.).
(2) FUNDING- The Secretary shall use $200,000 of the funds described
in subsection (a) to carry out the evaluation under this
subsection.
SEC. 462. CONGRESSIONAL HUNGER FELLOWS PROGRAM.
(a) SHORT TITLE- This section may be cited as the `Congressional
Hunger Fellows Act of 2002'.
(b) FINDINGS- Congress finds that--
(A) a critical need for compassionate individuals who are
committed to assisting people who suffer from hunger; and
(B) a need for those individuals to initiate and administer
solutions to the hunger problem;
(2) Bill Emerson, the distinguished late Representative from the 8th
District of Missouri, demonstrated--
(A) his commitment to solving the problem of hunger in a
bipartisan manner;
(B) his commitment to public service; and
(C) his great affection for the institution and the ideals of
Congress;
(3) George T. (Mickey) Leland, the distinguished late Representative
from the 18th District of Texas, demonstrated--
(A) his compassion for individuals in need;
(B) his high regard for public service; and
(C) his lively exercise of political talents;
(4) the special concern that Mr. Emerson and Mr. Leland demonstrated
during their lives for the hungry and poor was an inspiration for others to
work toward the goals of equality and justice for all; and
(5) since those 2 outstanding leaders maintained a special bond of
friendship regardless of political affiliation and worked together to
encourage future leaders to recognize and provide service to others, it is
especially appropriate to honor the memory of Mr. Emerson and Mr. Leland by
establishing a fellowship program to develop and train the future leaders of
the United States to pursue careers in humanitarian service.
(c) DEFINITIONS- In this section:
(1) APPROPRIATE CONGRESSIONAL COMMITTEES- The term `appropriate
congressional committees' means--
(A) the Committee on Agriculture and the Committee on
International Relations of the House of Representatives; and
(B) the Committee on Agriculture, Nutrition, and Forestry and the
Committee on Foreign Relations of the Senate.
(2) BOARD- The term `Board' means the Board of Trustees of the
Program.
(3) FUND- The term `Fund' means the Congressional Hunger Fellows
Trust Fund established by subsection (g).
(4) PROGRAM- The term `Program' means the Congressional Hunger
Fellows Program established by subsection (d).
(d) ESTABLISHMENT- There is established as an independent entity of
the legislative branch of the United States Government an entity to be known
as the `Congressional Hunger Fellows Program'.
(1) IN GENERAL- The Program shall be subject to the supervision and
direction of a Board of Trustees.
(2) MEMBERS OF THE BOARD-
(i) IN GENERAL- The Board shall be composed of 6 voting members
appointed under clause (ii) and 1 nonvoting ex officio member designated
by clause (iii).
(ii) VOTING MEMBERS- The voting members of the Board shall be
the following:
(I) 2 members appointed by the Speaker of the House of
Representatives.
(II) 1 member appointed by the minority leader of the House of
Representatives.
(III) 2 members appointed by the majority leader of the
Senate.
(IV) 1 member appointed by the minority leader of the
Senate.
(iii) NONVOTING MEMBER- The Executive Director of the Program
shall serve as a nonvoting ex officio member of the
Board.
(i) IN GENERAL- Each member of the Board shall serve for a term
of 4 years.
(ii) INCOMPLETE TERM- If a member of the Board does not serve
the full term of the member, the individual appointed to fill the
resulting vacancy shall be appointed for the remainder of the term of
the predecessor of the individual.
(C) VACANCY- A vacancy on the Board--
(i) shall not affect the powers of the Board;
and
(ii) shall be filled in the same manner as the original
appointment was made.
(D) CHAIRPERSON- As the first order of business of the first
meeting of the Board, the members shall elect a Chairperson.
(i) IN GENERAL- Subject to clause (ii), a member of the Board
shall not receive compensation for service on the
Board.
(ii) TRAVEL- A member of the Board shall be allowed travel
expenses, including per diem in lieu of subsistence, at rates authorized
for an employee of an agency under subchapter I of chapter 57 of title
5, United States Code, while away from the home or regular place of
business of the member in the performance of the duties of the
Board.
(i) ESTABLISHMENT- The Board shall establish such bylaws and
other regulations as are appropriate to enable the Board to carry out
this section, including the duties described in this
paragraph.
(ii) CONTENTS- Bylaws and other regulations established under
clause (i) shall include provisions--
(I) for appropriate fiscal control, accountability for funds,
and operating principles;
(II) to prevent any conflict of interest, or the appearance of
any conflict of interest, in--
(aa) the procurement and employment actions taken by the Board or
by any officer or employee of the Board; and
(bb) the selection and placement of individuals in the
fellowships developed under the Program;
(III) for the resolution of a tie vote of the members of the
Board; and
(IV) for authorization of travel for members of the
Board.
(iii) SUBMISSION TO CONGRESS- Not later than 90 days after the
date of the first meeting of the Board, the Chairperson of the Board
shall submit to the appropriate congressional committees a copy of the
bylaws established by the Board.
(B) BUDGET- For each fiscal year in which the Program is in
operation--
(i) the Board shall determine a budget for the Program for the
fiscal year; and
(ii) all spending by the Program shall be in accordance with the
budget unless a change is approved by the Board.
(C) PROCESS FOR SELECTION AND PLACEMENT OF FELLOWS- The Board
shall review and approve the process established by the Executive Director
for the selection and placement of individuals in the fellowships
developed under the Program.
(D) ALLOCATION OF FUNDS TO FELLOWSHIPS- The Board shall
determine--
(i) the priority of the programs to be carried out under this
section; and
(ii) the amount of funds to be allocated for the fellowships
established under subsection (f)(3)(A).
(f) PURPOSES; AUTHORITY OF PROGRAM-
(1) PURPOSES- The purposes of the Program are--
(A) to encourage future leaders of the United States to pursue
careers in humanitarian service;
(B) to recognize the needs of people who are hungry and
poor;
(C) to provide assistance and compassion for people in
need;
(D) to increase awareness of the importance of public service;
and
(E) to provide training and development opportunities for the
leaders through placement in programs operated by appropriate
entities.
(2) AUTHORITY- The Program may develop fellowships to carry out the
purposes of the Program, including the fellowships described in paragraph
(3).
(A) IN GENERAL- The Program shall establish and carry out the Bill
Emerson Hunger Fellowship and the Mickey Leland Hunger
Fellowship.
(i) IN GENERAL- The fellowships established under subparagraph
(A) shall provide experience and training to develop the skills and
understanding necessary to improve the humanitarian conditions and the
lives of individuals who suffer from hunger,
including--
(I) training in direct service to the hungry in conjunction
with community-based organizations through a program of field
placement; and
(II) experience in policy development through placement in a
governmental entity or nonprofit organization.
(I) BILL EMERSON HUNGER FELLOWSHIP- The Bill Emerson Hunger
Fellowship shall address hunger and other humanitarian needs in the
United States.
(II) MICKEY LELAND HUNGER FELLOWSHIP- The Mickey Leland Hunger
Fellowship shall address international hunger and other humanitarian
needs.
(iii) WORK PLAN- To carry out clause (i) and to assist in the
evaluation of the fellowships under paragraph (4), the Program shall,
for each fellow, approve a work plan that identifies the target
objectives for the fellow in the fellowship, including the specific
duties and responsibilities relating to the objectives.
(C) PERIOD OF FELLOWSHIP-
(i) EMERSON FELLOWSHIP- A Bill Emerson Hunger Fellowship awarded
under this paragraph shall be for a period of not more than 1
year.
(ii) LELAND FELLOWSHIP- A Mickey Leland Hunger Fellowship
awarded under this paragraph shall be for a period of not more than 2
years, of which not less than 1 year shall be dedicated to fulfilling
the requirement of subparagraph (B)(i)(I).
(D) SELECTION OF FELLOWS-
(i) IN GENERAL- A fellowship shall be awarded through a
nationwide competition established by the Program.
(ii) QUALIFICATION- A successful applicant shall be an
individual who has demonstrated--
(I) an intent to pursue a career in humanitarian service and
outstanding potential for such a career;
(II) leadership potential or leadership
experience;
(III) diverse life experience;
(IV) proficient writing and speaking
skills;
(V) an ability to live in poor or diverse communities;
and
(VI) such other attributes as the Board determines to be
appropriate.
(I) IN GENERAL- Each individual awarded a fellowship under
this paragraph shall receive a living allowance and, subject to
subclause (II), an end-of-service award as determined by the
Program.
(II) REQUIREMENT FOR SUCCESSFUL COMPLETION OF FELLOWSHIP- Each
individual awarded a fellowship under this paragraph shall be entitled
to receive an end-of-service award at an appropriate rate for each
month of satisfactory service as determined by the Executive
Director.
(iv) RECOGNITION OF FELLOWSHIP AWARD-
(I) EMERSON FELLOW- An individual awarded a Bill Emerson
Hunger Fellowship shall be known as an `Emerson
Fellow'.
(II) LELAND FELLOW- An individual awarded a Mickey Leland
Hunger Fellowship shall be known as a `Leland
Fellow'.
(A) IN GENERAL- The Program shall conduct periodic evaluations of
the Bill Emerson and Mickey Leland Hunger Fellowships.
(B) REQUIRED ELEMENTS- Each evaluation shall
include--
(i) an assessment of the successful completion of the work plan
of each fellow;
(ii) an assessment of the impact of the fellowship on the
fellows;
(iii) an assessment of the accomplishment of the purposes of the
Program; and
(iv) an assessment of the impact of each fellow on the
community.
(1) ESTABLISHMENT- There is established in the Treasury of the
United States a fund to be known as the `Congressional Hunger Fellows Trust
Fund', consisting of--
(A) amounts appropriated to the Fund under subsection
(k);
(B) any amounts earned on investment of amounts in the Fund under
paragraph (2); and
(C) amounts received under subsection (i)(3)(A).
(2) INVESTMENT OF AMOUNTS-
(i) AUTHORITY TO INVEST- The Secretary of the Treasury shall
invest such portion of the Fund as is not, in the judgment of the
Secretary of the Treasury, required to meet current
withdrawals.
(ii) TYPES OF INVESTMENTS- Each investment may be made only in
an interest-bearing obligation of the United States or an obligation
guaranteed as to principal and interest by the United States that, as
determined by the Secretary of the Treasury in consultation with the
Board, has a maturity suitable for the Fund.
(B) ACQUISITION OF OBLIGATIONS- For the purpose of investments
under subparagraph (A), obligations may be acquired--
(i) on original issue at the issue price; or
(ii) by purchase of outstanding obligations at the market
price.
(C) SALE OF OBLIGATIONS- Any obligation acquired by the Fund may
be sold by the Secretary of the Treasury at the market
price.
(D) CREDITS TO FUND- The interest on, and the proceeds from the
sale or redemption of, any obligations held in the Fund shall be credited
to and form a part of the Fund.
(3) TRANSFERS OF AMOUNTS-
(A) IN GENERAL- The amounts required to be transferred to the Fund
under this subsection shall be transferred at least monthly from the
general fund of the Treasury to the Fund on the basis of estimates made by
the Secretary of the Treasury.
(B) ADJUSTMENTS- Proper adjustment shall be made in amounts
subsequently transferred to the extent prior estimates were in excess of
or less than the amounts required to be transferred.
(h) EXPENDITURES; AUDITS-
(1) IN GENERAL- The Secretary of the Treasury shall transfer to the
Program from the amounts described in subsections (g)(2)(D) and (i)(3)(A)
such sums as the Board determines to be necessary to enable the Program to
carry out this section.
(2) LIMITATION- The Secretary may not transfer to the Program the
amounts appropriated to the Fund under subsection (k).
(3) USE OF FUNDS- Funds transferred to the Program under paragraph
(1) shall be used--
(A) to provide a living allowance for the fellows;
(B) to defray the costs of transportation of the fellows to the
fellowship placement sites;
(C) to defray the costs of appropriate insurance of the fellows,
the Program, and the Board;
(D) to defray the costs of preservice and midservice education and
training of fellows;
(E) to pay staff described in subsection (i);
(F) to make end-of-service awards under subsection
(f)(3)(D)(iii)(II); and
(G) for such other purposes as the Board determines to be
appropriate to carry out the Program.
(4) AUDIT BY COMPTROLLER GENERAL-
(A) IN GENERAL- The Comptroller General of the United States shall
conduct an annual audit of the accounts of the Program.
(B) BOOKS- The Program shall make available to the Comptroller
General all books, accounts, financial records, reports, files, and other
papers, things, or property belonging to or in use by the Program and
necessary to facilitate the audit.
(C) REPORT TO CONGRESS- The Comptroller General shall submit to
the appropriate congressional committees a copy of the results of each
audit under subparagraph (A).
(i) STAFF; POWERS OF PROGRAM-
(A) IN GENERAL- The Board shall appoint an Executive Director of
the Program who shall--
(i) administer the Program; and
(ii) carry out such other functions consistent with this section
as the Board shall prescribe.
(B) RESTRICTION- The Executive Director may not serve as
Chairperson of the Board.
(C) COMPENSATION- The Executive Director shall be paid at a rate
not to exceed the rate payable for level V of the Executive Schedule under
section 5316 of title 5, United States Code.
(A) IN GENERAL- With the approval of a majority of the Board, the
Executive Director may appoint and fix the pay of such additional
personnel as the Executive Director considers necessary to carry out this
section.
(B) COMPENSATION- An individual appointed under subparagraph (A)
shall be paid at a rate not to exceed the rate payable for level GS-15 of
the General Schedule.
(i) IN GENERAL- The Program may solicit, accept, use, and
dispose of gifts, bequests, or devises of services or property, both
real and personal, for the purpose of aiding or facilitating the work of
the Program.
(ii) USE OF GIFTS- Gifts, bequests, or devises of money and
proceeds from sales of other property received as gifts, bequests, or
devises shall--
(I) be deposited in the Fund; and
(II) be available for disbursement on order of the
Board.
(B) PROCUREMENT OF TEMPORARY AND INTERMITTENT SERVICES- To carry
out this section, the Program may procure temporary and intermittent
services in accordance with section 3109(b) of title 5, United States
Code, at rates for individuals that do not exceed the daily equivalent of
the annual rate of basic pay payable for level GS-15 of the General
Schedule.
(C) CONTRACT AUTHORITY- To carry out this section, the Program
may, with the approval of a majority of the members of the Board, contract
with and compensate Government and private agencies or persons without
regard to section 3709 of the Revised Statutes (41 U.S.C.
5).
(D) OTHER NECESSARY EXPENDITURES-
(i) IN GENERAL- Subject to clause (ii), the Program may make
such other expenditures as the Program considers necessary to carry out
this section.
(ii) PROHIBITION- The Program may not expend funds to develop
new or expanded projects at which fellows may be
placed.
(j) REPORT- Not later than December 31 of each year, the Board shall
submit to the appropriate congressional committees a report on the activities
of the Program carried out during the preceding fiscal year that
includes--
(1) an analysis of the evaluations conducted under subsection (f)(4)
during the fiscal year; and
(A) the total amount of funds attributable to gifts received by
the Program in the fiscal year under subsection (i)(3)(A);
and
(B) the total amount of funds described in subparagraph (A) that
were expended to carry out the Program in the fiscal year.
(k) AUTHORIZATION OF APPROPRIATIONS- There is authorized to be
appropriated to carry out this section $18,000,000.
(l) EFFECTIVE DATE- This section takes effect on October 1,
2002.
SEC. 463. NUTRITION INFORMATION AND AWARENESS PILOT PROGRAM.
(a) ESTABLISHMENT- The Secretary of Agriculture may establish, in not
more than 15 States, a pilot program to increase the domestic consumption of
fresh fruits and vegetables.
(b) PURPOSE- The purpose of the program shall be to provide funds to
States to assist eligible public and private sector entities with cost-share
assistance to carry out demonstration projects--
(1) to increase fruit and vegetable consumption; and
(2) to convey related health promotion messages.
(c) PRIORITY- To the maximum extent practicable, the Secretary
shall--
(1) establish the program in States in which the production of
fruits or vegetables is a significant industry, as determined by the
Secretary; and
(2) base the program on strategic initiatives,
including--
(A) health promotion and education interventions;
(B) public service and paid advertising or marketing
activities;
(C) health promotion campaigns relating to locally grown fruits
and vegetables; and
(D) social marketing campaigns.
(d) PARTICIPANT ELIGIBILITY- In selecting States to participate in the
program, the Secretary shall take into consideration, with respect to projects
and activities proposed to be carried out by the State under the
program--
(1) experience in carrying out similar projects or
activities;
(3) the ability of the State--
(A) to conduct marketing campaigns for, promote, and track
increases in levels of, produce consumption; and
(B) to optimize the availability of produce through distribution
of produce.
(e) FEDERAL SHARE- The Federal share of the cost of any project or
activity carried out using funds provided under this section shall be 50
percent.
(f) USE OF FUNDS- Funds made available to carry out this section shall
not be made available to any foreign for-profit corporation.
(g) AUTHORIZATION OF APPROPRIATIONS- There is authorized to be
appropriated to carry out this section $25,000,000 for each of fiscal years
2002 through 2006.
SEC. 464. EFFECTIVE DATE.
Except as otherwise provided in this title, the amendments made by
this title take effect on September 1, 2002, except that a State agency may,
at the option of the State agency, elect not to implement any or all of the
amendments until October 1, 2002.
TITLE V--CREDIT
Subtitle A--Farm Ownership Loans
SEC. 501. DIRECT LOANS.
Section 302(b)(1) of the Consolidated Farm and Rural Development Act
(7 U.S.C. 1922(b)(1)) is amended by striking `operated' and inserting
`participated in the business operations of'.
SEC. 502. FINANCING OF BRIDGE LOANS.
Section 303(a)(1) of the Consolidated Farm and Rural Development Act
(7 U.S.C. 1923(a)(1)) is amended--
(1) in subparagraph (C), by striking `or' at the end;
(2) in subparagraph (D), by striking the period at the end and
inserting `; or'; and
(3) by adding at the end the following:
`(E) refinancing, during a fiscal year, a short-term, temporary
bridge loan made by a commercial or cooperative lender to a beginning
farmer or rancher for the acquisition of land for a farm or ranch,
if--
`(i) the Secretary approved an application for a direct farm
ownership loan to the beginning farmer or rancher for acquisition of the
land; and
`(ii) funds for direct farm ownership loans under section 346(b)
were not available at the time at which the application was
approved.'.
SEC. 503. LIMITATIONS ON AMOUNT OF FARM OWNERSHIP LOANS.
Section 305 of the Consolidated Farm and Rural Development Act (7
U.S.C. 1925) is amended by striking subsection (a) and inserting the
following:
`(a) IN GENERAL- The Secretary shall not make or insure a loan under
section 302, 303, 304, 310D, or 310E that would cause the unpaid indebtedness
under those sections of any 1 borrower to exceed the lesser of--
`(1) the value of the farm or other security; or
`(2)(A) in the case of a loan made by the Secretary--
`(i) to a beginning farmer or rancher, $250,000, as adjusted
(beginning with fiscal year 2003) by the inflation percentage applicable
to the fiscal year in which the loan is made; or
`(ii) to a borrower other than a beginning farmer or rancher,
$200,000; or
`(B) in the case of a loan guaranteed by the Secretary, $700,000,
as--
`(i) adjusted (beginning with fiscal year 2000) by the inflation
percentage applicable to the fiscal year in which the loan is guaranteed;
and
`(ii) reduced by the amount of any unpaid indebtedness of the
borrower on loans under subtitle B that are guaranteed by the
Secretary.'.
SEC. 504. JOINT FINANCING ARRANGEMENTS.
Section 307(a)(3)(D) of the Consolidated Farm and Rural Development
Act (7 U.S.C. 1927(a)(3)(D)) is amended--
(1) by striking `If' and inserting the following:
`(i) IN GENERAL- Subject to clause (ii), if';
and
(2) by adding at the end the following:
`(ii) BEGINNING FARMERS AND RANCHERS- The interest rate charged
a beginning farmer or rancher for a loan described in clause (i) shall
be 50 basis points less than the rate charged farmers and ranchers that
are not beginning farmers or ranchers.'.
SEC. 505. GUARANTEE PERCENTAGE FOR BEGINNING FARMERS AND
RANCHERS.
Section 309(h)(6) of the Consolidated Farm and Rural Development Act
(7 U.S.C. 1929(h)(6)) is amended by striking `GUARANTEED UP' and all that
follows through `more than' and inserting `GUARANTEED AT 95 PERCENT- The
Secretary shall guarantee'.
SEC. 506. GUARANTEE OF LOANS MADE UNDER STATE BEGINNING FARMER OR
RANCHER PROGRAMS.
Section 309 of the Consolidated Farm and Rural Development Act (7
U.S.C. 1929) is amended by adding at the end the following:
`(j) GUARANTEE OF LOANS MADE UNDER STATE BEGINNING FARMER OR RANCHER
PROGRAMS- The Secretary may guarantee under this title a loan made under a
State beginning farmer or rancher program, including a loan financed by the
net proceeds of a qualified small issue agricultural bond for land or property
described in section 144(a)(12)(B)(ii) of the Internal Revenue Code of
1986.'.
SEC. 507. DOWN PAYMENT LOAN PROGRAM.
Section 310E of the Consolidated Farm and Rural Development Act (7
U.S.C. 1935) is amended--
(A) in paragraph (1), by striking `30 percent' and inserting `40
percent'; and
(B) in paragraph (3), by striking `10 years' and inserting `20
years'; and
(2) in subsection (c)(3)(B), by striking `10-year' and inserting
`20-year'.
SEC. 508. BEGINNING FARMER AND RANCHER CONTRACT LAND SALES
PROGRAM.
Subtitle A of the Consolidated Farm and Rural Development Act (7
U.S.C. 1922 et seq.) is amended by adding at the end the following:
`SEC. 310F. BEGINNING FARMER AND RANCHER CONTRACT LAND SALES
PROGRAM.
`(a) IN GENERAL- Not later than October 1, 2002, the Secretary shall
carry out a pilot program in not fewer than 10 geographically dispersed
States, as determined by the Secretary, to guarantee up to 5 loans per State
in each of fiscal years 2003 through 2006 made by a private seller of a farm
or ranch to a qualified beginning farmer or rancher on a contract land sale
basis, if the loan meets applicable underwriting criteria and a commercial
lending institution agrees to serve as escrow agent.
`(b) DATE OF COMMENCEMENT OF PROGRAM- The Secretary shall commence the
pilot program on making a determination that guarantees of contract land sales
present a risk that is comparable with the risk presented in the case of
guarantees to commercial lenders.'.
Subtitle B--Operating Loans
SEC. 511. DIRECT LOANS.
Section 311(c)(1)(A) of the Consolidated Farm and Rural Development
Act (7 U.S.C. 1941(c)(1)(A)) is amended by striking `who has not' and all that
follows through `5 years'.
SEC. 512. AMOUNT OF GUARANTEE OF LOANS FOR TRIBAL FARM OPERATIONS;
WAIVER OF LIMITATIONS FOR TRIBAL OPERATIONS AND OTHER OPERATIONS.
(a) AMOUNT OF GUARANTEE OF LOANS FOR TRIBAL OPERATIONS- Section 309(h)
of the Consolidated Farm and Rural Development Act (7 U.S.C. 1929(h)) is
amended--
(1) in paragraph (4), by striking `paragraphs (5) and (6)' and
inserting `paragraphs (5), (6), and (7)'; and
(2) by adding at the end the following:
`(7) AMOUNT OF GUARANTEE OF LOANS FOR TRIBAL OPERATIONS- In the case
of an operating loan made to a farmer or rancher who is a member of an
Indian tribe and whose farm or ranch is within an Indian reservation (as
defined in section 335(e)(1)(A)(ii)), the Secretary shall guarantee 95
percent of the loan.'.
(b) WAIVER OF LIMITATIONS- Section 311(c) of the Consolidated Farm and
Rural Development Act (7 U.S.C. 1941(c)) is amended--
(1) in paragraph (1), by striking `paragraph (3)' and inserting
`paragraphs (3) and (4)'; and
(2) by adding at the end the following:
`(A) TRIBAL FARM AND RANCH OPERATIONS- The Secretary shall waive
the limitation under paragraph (1)(C) or (3) for a direct loan made under
this subtitle to a farmer or rancher who is a member of an Indian tribe
and whose farm or ranch is within an Indian reservation (as defined in
section 335(e)(1)(A)(ii)) if the Secretary determines that commercial
credit is not generally available for such farm or ranch
operations.
`(B) OTHER FARM AND RANCH OPERATIONS- On a case-by-case
determination not subject to administrative appeal, the Secretary may
grant a borrower a waiver, 1 time only for a period of 2 years, of the
limitation under paragraph (1)(C) or (3) for a direct operating loan if
the borrower demonstrates to the satisfaction of the Secretary
that--
`(i) the borrower has a viable farm or ranch
operation;
`(ii) the borrower applied for commercial credit from at least 2
commercial lenders;
`(iii) the borrower was unable to obtain a commercial loan
(including a loan guaranteed by the Secretary); and
`(iv) the borrower successfully has completed, or will complete
within 1 year, borrower training under section 359 (from which
requirement the Secretary shall not grant a waiver under section
359(f)).'.
Subtitle C--Administrative Provisions
SEC. 521. ELIGIBILITY OF LIMITED LIABILITY COMPANIES FOR FARM OWNERSHIP
LOANS, FARM OPERATING LOANS, AND EMERGENCY LOANS.
(a) IN GENERAL- Sections 302(a), 311(a), and 321(a) of the
Consolidated Farm and Rural Development Act (7 U.S.C. 1922(a), 1941(a),
1961(a)) are amended by striking `and joint operations' each place it appears
and inserting `joint operations, and limited liability companies'.
(b) CONFORMING AMENDMENT- Section 321(a) of the Consolidated Farm and
Rural Development Act (7 U.S.C. 1961(a)) is amended by striking `or joint
operations' each place it appears and inserting `joint operations, or limited
liability companies'.
SEC. 522. DEBT SETTLEMENT.
Section 331(b)(4) of the Consolidated Farm and Rural Development Act
(7 U.S.C. 1981(b)(4)) is amended by striking `carried out--' and all that
follows through `(B) after' and inserting `carried out after'.
SEC. 523. TEMPORARY AUTHORITY TO ENTER INTO CONTRACTS; PRIVATE
COLLECTION AGENCIES.
(a) IN GENERAL- Section 331 of the Consolidated Farm and Rural
Development Act (7 U.S.C. 1981) is amended by striking subsections (d) and
(e).
(b) APPLICATION- The amendment made by subsection (a) shall not apply
to a contract entered into before the effective date of this Act.
SEC. 524. INTEREST RATE OPTIONS FOR LOANS IN SERVICING.
Section 331B of the Consolidated Farm and Rural Development Act (7
U.S.C. 1981b) is amended--
(1) by striking `lower of (1) the' and inserting the following:
`lowest of--
(2) by striking `original loan or (2) the' and inserting the
following: `original loan;
`(2) the rate being charged by the Secretary for loans, other than
guaranteed loans, of the same type at the time at which the borrower applies
for a deferral, consolidation, rescheduling, or reamortization;
or
SEC. 525. ANNUAL REVIEW OF BORROWERS.
Section 333 of the Consolidated Farm and Rural Development Act (7
U.S.C. 1983) is amended by striking paragraph (2) and inserting the
following:
`(2) except with respect to a loan under section 306, 310B, or
314--
`(A) an annual review of the credit history and business operation
of the borrower; and
`(B) an annual review of the continued eligibility of the borrower
for the loan;'.
SEC. 526. SIMPLIFIED LOAN APPLICATIONS.
Section 333A(g)(1) of the Consolidated Farm and Rural Development Act
(7 U.S.C. 1983a(g)(1)) is amended by striking `of loans the principal amount
of which is $50,000 or less' and inserting `of farmer program loans the
principal amount of which is $100,000 or less'.
SEC. 527. INVENTORY PROPERTY.
Section 335(c) of the Consolidated Farm and Rural Development Act (7
U.S.C. 1985(c)) is amended--
(A) in subparagraph (B)--
(i) in clause (i), by striking `75 days' and inserting `135
days'; and
(ii) by adding at the end the following:
`(iv) COMBINING AND DIVIDING OF PROPERTY- To the maximum extent
practicable, the Secretary shall maximize the opportunity for beginning
farmers and ranchers to purchase real property acquired by the Secretary
under this title by combining or dividing inventory parcels of the
property in such manner as the Secretary determines to be appropriate.';
and
(B) in subparagraph (C)--
(i) by striking `75 days' and inserting `135 days';
and
(ii) by striking `75-day period' and inserting `135-day
period';
(2) by striking paragraph (2) and inserting the
following:
`(2) PREVIOUS LEASE- In the case of real property acquired before
April 4, 1996, that the Secretary leased before April 4, 1996, not later
than 60 days after the lease expires, the Secretary shall offer to sell the
property in accordance with paragraph (1).'; and
(A) in subparagraph (A), by striking `subparagraph (B)' and
inserting `subparagraphs (B) and (C)'; and
(B) by adding at the end the following:
`(C) OFFER TO SELL OR GRANT FOR FARMLAND PRESERVATION- For the
purpose of farmland preservation, the Secretary shall--
`(i) in consultation with the State Conservationist of each
State in which inventory property is located, identify each parcel of
inventory property in the State that should be preserved for
agricultural use; and
`(ii) offer to sell or grant an easement, restriction,
development right, or similar legal right to each parcel identified
under clause (i) to a State, a political subdivision of a State, or a
private nonprofit organization separately from the underlying fee or
other rights to the property owned by the United
States.'.
SEC. 528. DEFINITIONS.
(a) QUALIFIED BEGINNING FARMER OR RANCHER- Section 343(a)(11)(F) of
the Consolidated Farm and Rural Development Act (7 U.S.C. 1991(a)(11)(F)) is
amended by striking `25 percent' and inserting `30 percent'.
(b) DEBT FORGIVENESS- Section 343(a)(12) of the Consolidated Farm and
Rural Development Act (7 U.S.C. 1991(a)(12)) is amended by striking
subparagraph (B) and inserting the following:
`(B) EXCEPTIONS- The term `debt forgiveness' does not
include--
`(i) consolidation, rescheduling, reamortization, or deferral of
a loan; or
`(ii) any write-down provided as part of a resolution of a
discrimination complaint against the Secretary.'.
SEC. 529. LOAN AUTHORIZATION LEVELS.
Section 346 of the Consolidated Farm and Rural Development Act (7
U.S.C. 1994) is amended--
(A) by striking paragraph (1) and inserting the
following:
`(1) IN GENERAL- The Secretary may make or guarantee loans under
subtitles A and B from the Agricultural Credit Insurance Fund provided for
in section 309 for not more than $3,750,000,000 for each of fiscal years
2002 through 2006, of which, for each fiscal year--
`(A) $750,000,000 shall be for direct loans, of
which--
`(i) $200,000,000 shall be for farm ownership loans under
subtitle A; and
`(ii) $550,000,000 shall be for operating loans under subtitle
B; and
`(B) $3,000,000,000 shall be for guaranteed loans, of
which--
`(i) $1,000,000,000 shall be for guarantees of farm ownership
loans under subtitle A; and
`(ii) $2,000,000,000 shall be for guarantees of operating loans
under subtitle B.'; and
(B) in paragraph (2)(A)(ii), by striking `farmers and ranchers'
and all that follows and inserting `farmers and ranchers 35 percent for
each of fiscal years 2002 through 2006.'; and
(2) in subsection (c), by striking the last sentence.
SEC. 530. INTEREST RATE REDUCTION PROGRAM.
Section 351 of the Consolidated Farm and Rural Development Act (7
U.S.C. 1999) is amended--
(A) by striking `PROGRAM- ' and all that follows through `The
Secretary' and inserting `PROGRAM- The Secretary'; and
(B) by striking paragraph (2);
(2) by striking subsection (c) and inserting the
following:
`(c) AMOUNT OF INTEREST RATE REDUCTION-
`(1) IN GENERAL- In return for a contract entered into by a lender
under subsection (b) for the reduction of the interest rate paid on a loan,
the Secretary shall make payments to the lender in an amount equal to not
more than 100 percent of the cost of reducing the annual rate of interest
payable on the loan, except that such payments shall not exceed the cost of
reducing the rate by more than--
`(A) in the case of a borrower other than a beginning farmer or
rancher, 3 percent; and
`(B) in the case of a beginning farmer or rancher, 4
percent.
`(2) BEGINNING FARMERS AND RANCHERS- The percentage reduction of the
interest rate for which payments are authorized to be made for a beginning
farmer or rancher under paragraph (1) shall be 1 percent more than the
percentage reduction for farmers and ranchers that are not beginning farmers
or ranchers.'; and
(3) in subsection (e), by striking paragraph (2) and inserting the
following:
`(2) MAXIMUM AMOUNT OF FUNDS-
`(A) IN GENERAL- The total amount of funds used by the Secretary
to carry out this section for a fiscal year shall not exceed
$750,000,000.
`(B) BEGINNING FARMERS AND RANCHERS-
`(i) IN GENERAL- The Secretary shall reserve not less than 25
percent of the funds used by the Secretary under subparagraph (A) to
make payments for guaranteed loans made to beginning farmers and
ranchers.
`(ii) DURATION OF RESERVATION OF FUNDS- Funds reserved for
beginning farmers or ranchers under clause (i) for a fiscal year shall
be reserved only until April 1 of the fiscal year.'.
SEC. 531. OPTIONS FOR SATISFACTION OF OBLIGATION TO PAY RECAPTURE AMOUNT
FOR SHARED APPRECIATION AGREEMENTS.
(a) IN GENERAL- Section 353(e)(7) of the Consolidated Farm and Rural
Development Act (7 U.S.C. 2001(e)(7)) is amended--
(1) in subparagraph (C), by redesignating clauses (i) and (ii) as
subclauses (I) and (II), respectively, and adjusting the margins
appropriately;
(2) by redesignating subparagraphs (A) through (C) as clauses (i)
through (iii), respectively, and adjusting the margins
appropriately;
(3) by striking the paragraph heading and inserting the
following:
`(7) OPTIONS FOR SATISFACTION OF OBLIGATION TO PAY RECAPTURE AMOUNT-
`(A) IN GENERAL- As an alternative to repaying the full recapture
amount at the end of the term of the shared appreciation agreement (as
determined by the Secretary in accordance with this subsection), a
borrower may satisfy the obligation to pay the amount of recapture
by--
`(i) financing the recapture payment in accordance with
subparagraph (B); or
`(ii) granting the Secretary an agricultural use protection and
conservation easement on the property subject to the shared appreciation
agreement in accordance with subparagraph (C).
`(B) FINANCING OF RECAPTURE PAYMENT- '; and
(4) by adding at the end the following:
`(C) AGRICULTURAL USE PROTECTION AND CONSERVATION EASEMENT-
`(i) IN GENERAL- Subject to clause (iii), the Secretary shall
accept an agricultural use protection and conservation easement from the
borrower for all of the real security property subject to the shared
appreciation agreement in lieu of payment of the recapture
amount.
`(ii) TERM- The term of an easement accepted by the Secretary
under this subparagraph shall be 25 years.
`(iii) CONDITIONS- The easement shall require that the property
subject to the easement shall continue to be used or conserved for
agricultural and conservation uses in accordance with sound farming and
conservation practices, as determined by the Secretary.
`(iv) REPLACEMENT OF METHOD OF SATISFYING OBLIGATION- A borrower
that has begun financing of a recapture payment under subparagraph (B)
may replace that financing with an agricultural use protection and
conservation easement under this subparagraph.'.
(b) APPLICABILITY- The amendments made by subsection (a) shall apply
to a shared appreciation agreement entered into under section 353(e) of the
Consolidated Farm and Rural Development Act (7 U.S.C. 2001(e)) that--
(1) matures on or after the date of enactment of this Act;
or
(2) matured before the date of enactment of this Act,
if--
(A) the recapture amount was reamortized under section 353(e)(7)
of the Consolidated Farm and Rural Development Act (7 U.S.C. 2001(e)(7))
(as in effect on the day before the date of enactment of this Act);
or
(B)(i) the recapture amount had not been paid before the date of
enactment of this Act because of circumstances beyond the control of the
borrower; and
(ii) the borrower acted in good faith (as determined by the
Secretary) in attempting to repay the recapture amount.
SEC. 532. WAIVER OF BORROWER TRAINING CERTIFICATION
REQUIREMENT.
Section 359 of the Consolidated Farm and Rural Development Act (7
U.S.C. 2006a) is amended by striking subsection (f) and inserting the
following:
`(1) IN GENERAL- The Secretary may waive the requirements of this
section for an individual borrower if the Secretary determines that the
borrower demonstrates adequate knowledge in areas described in this
section.
`(2) CRITERIA- The Secretary shall establish criteria providing for
the application of paragraph (1) consistently in all counties
nationwide.'.
SEC. 533. ANNUAL REVIEW OF BORROWERS.
Section 360(d)(1) of the Consolidated Farm and Rural Development Act
(7 U.S.C. 2006b(d)(1)) is amended by striking `biannual' and inserting
`annual'.
Subtitle D--Farm Credit
SEC. 541. REPEAL OF BURDENSOME APPROVAL REQUIREMENTS.
(a) BANKS FOR COOPERATIVES- Section 3.1(11)(B) of the Farm Credit Act
of 1971 (12 U.S.C. 2122(11)(B)) is amended--
(1) by striking clause (iii); and
(2) by redesignating clause (iv) as clause (iii).
(b) OTHER SYSTEM BANKS; ASSOCIATIONS- Section 4.18A of the Farm Credit
Act of 1971 (12 U.S.C. 2206a) is amended--
(1) in subsection (a)(1), by striking `3.1(11)(B)(iv)' and inserting
`3.1(11)(B)(iii)'; and
(2) by striking subsection (c).
SEC. 542. BANKS FOR COOPERATIVES.
Section 3.7(b) of the Farm Credit Act of 1971 (12 U.S.C. 2128(b)) is
amended--
(1) in paragraphs (1) and (2)(A)(i), by striking `farm supplies'
each place it appears and inserting `agricultural supplies'; and
(2) by adding at the end the following:
`(4) DEFINITION OF AGRICULTURAL SUPPLY- In this subsection, the term
`agricultural supply' includes--
`(B)(i) agriculture-related processing equipment;
`(ii) agriculture-related machinery; and
`(iii) other capital goods related to the storage or handling of
agricultural commodities or products.'.
SEC. 543. INSURANCE CORPORATION PREMIUMS.
(a) REDUCTION IN PREMIUMS FOR GSE-GUARANTEED LOANS-
(1) IN GENERAL- Section 5.55 of the Farm Credit Act of 1971 (12
U.S.C. 2277a-4) is amended--
(I) in subparagraph (A), by striking `government-guaranteed
loans provided for in subparagraph (C)' and inserting `loans provided
for in subparagraphs (C) and (D)';
(II) in subparagraph (B), by striking `and' at the
end;
(III) in subparagraph (C), by striking the period at the end
and inserting `; and'; and
(IV) by adding at the end the following:
`(D) the annual average principal outstanding for such year on the
guaranteed portions of Government Sponsored Enterprise-guaranteed loans
made by the bank that are in accrual status, multiplied by a factor, not
to exceed 0.0015, determined by the Corporation at the sole discretion of
the Corporation.'; and
(ii) by adding at the end the following:
`(4) DEFINITION OF GOVERNMENT SPONSORED ENTERPRISE-GUARANTEED LOAN-
In this section and sections 1.12(b) and 5.56(a), the term `Government
Sponsored Enterprise-guaranteed loan' means a loan or credit, or portion of
a loan or credit, that is guaranteed by an entity that is chartered by
Congress to serve a public purpose and the debt obligations of which are not
explicitly guaranteed by the United States, including the Federal National
Mortgage Association, the Federal Home Loan Mortgage Corporation, the
Federal Home Loan Bank System, and the Federal Agricultural Mortgage
Corporation, but not including any other institution of the Farm Credit
System.'; and
(B) in subsection (e)(4)(B), by striking `government-guaranteed
loans described in subsection (a)(1)(C)' and inserting `loans described in
subparagraph (C) or (D) of subsection (a)(1)'.
(2) CONFORMING AMENDMENTS-
(A) Section 1.12(b) of the Farm Credit Act of 1971 (12 U.S.C.
2020(b)) is amended--
(i) in paragraph (1), by inserting `and Government Sponsored
Enterprise-guaranteed loans (as defined in section 5.55(a)(4)) provided
for in paragraph (4)' after `government-guaranteed loans (as defined in
section 5.55(a)(3)) provided for in paragraph (3)';
(ii) in paragraph (2), by striking `and' at the
end;
(iii) in paragraph (3), by striking the period at the end and
inserting `; and'; and
(iv) by adding at the end the following:
`(4) the annual average principal outstanding for such year on the
guaranteed portions of Government Sponsored Enterprise-guaranteed loans (as
so defined) made by the association, or by the other financing institution
and funded by or discounted with the Farm Credit Bank, that are in accrual
status, multiplied by a factor, not to exceed 0.0015, determined by the
Corporation for the purpose of setting the premium for such guaranteed
portions of loans under section 5.55(a)(1)(D).'.
(B) Section 5.56(a) of the Farm Credit Act of 1971 (12 U.S.C.
2277a-5(a)) is amended--
(i) in paragraph (1), by inserting `and Government Sponsored
Enterprise-guaranteed loans (as defined in section 5.55(a)(4))' after
`government-guaranteed loans';
(ii) by redesignating paragraphs (4) and (5) as paragraphs (5)
and (6), respectively; and
(iii) by inserting after paragraph (3) the
following:
`(4) the annual average principal outstanding on the guaranteed
portions of Government Sponsored Enterprise-guaranteed loans (as defined in
section 5.55(a)(4)) that are in accrual status;'.
(b) EFFECTIVE DATE- The amendments made by subsection (a) take effect
on the date on which Farm Credit System Insurance Corporation premiums are due
from insured Farm Credit System banks under section 5.55 of the Farm Credit
Act of 1971 (12 U.S.C. 2277a-4) for calendar year 2001.
SEC. 544. BOARD OF DIRECTORS OF THE FEDERAL AGRICULTURAL MORTGAGE
CORPORATION.
Section 8.2(b) of the Farm Credit Act of 1971 (12 U.S.C. 2279aa-2(b))
is amended--
(A) by striking `15' and inserting `17';
(B) in subparagraph (A), by striking `common stock' and all that
follows and inserting `Class A voting common stock;';
(C) in subparagraph (B), by striking `common stock' and all that
follows and inserting `Class B voting common stock;';
(D) by redesignating subparagraph (C) as subparagraph (D);
and
(E) by inserting after subparagraph (B) the
following:
`(C) 2 members shall be elected by holders of Class A voting
common stock and Class B voting common stock, 1 of whom shall be the chief
executive officer of the Corporation and 1 of whom shall be another
executive officer of the Corporation; and';
(2) in paragraph (3), by striking `(2)(C)' and inserting
`(2)(D)';
(A) in subparagraph (A), by striking `(A) or (B)' and inserting
`(A), (B), or (C)'; and
(B) in subparagraph (B), by striking `(2)(C)' and inserting
`(2)(D)';
(4) in paragraph (5)(A)--
(A) by inserting `executive officers of the Corporation or' after
`from among persons who are'; and
(B) by striking `such a representative' and inserting `such an
executive officer or representative';
(5) in paragraph (6)(B), by striking `(A) and (B)' and inserting
`(A), (B), and (C)';
(6) in paragraph (7), by striking `8 members' and inserting `Nine
members';
(A) in the paragraph heading, by inserting `OR EXECUTIVE OFFICERS
OF THE CORPORATION' after `EMPLOYEES'; and
(B) by inserting `or executive officers of the Corporation' after
`United States'; and
(8) by striking paragraph (9) and inserting the
following:
`(A) ELECTION- The permanent board shall annually elect a
chairperson from among the members of the permanent board.
`(B) TERM- The term of the chairperson shall coincide with the
term served by elected members of the permanent board under paragraph
(6)(B).'.
Subtitle E--General Provisions
SEC. 551. INAPPLICABILITY OF FINALITY RULE.
Section 281(a)(1) of the Department of Agriculture Reorganization Act
of 1994 (7 U.S.C. 7001(a)(1)) is amended--
(1) by striking `This subsection' and inserting the
following:
`(A) IN GENERAL- Except as provided in subparagraph (B), this
subsection'; and
(2) by adding at the end the following:
`(B) AGRICULTURAL CREDIT DECISIONS- This subsection shall not
apply with respect to an agricultural credit decision made by such a
State, county, or area committee, or employee of such a committee, under
the Consolidated Farm and Rural Development Act (7 U.S.C. 1921 et
seq.).'.
SEC. 552. TECHNICAL AMENDMENTS.
(a) Section 321(a) of the Consolidated Farm and Rural Development Act
(7 U.S.C. 1961(a)) is amended by striking `Disaster Relief and Emergency
Assistance Act' each place it appears and inserting `Robert T. Stafford
Disaster Relief and Emergency Assistance Act (42 U.S.C. 5121 et
seq.)'.
(b) Section 336(b) of the Consolidated Farm and Rural Development Act
(7 U.S.C. 1986(b)) is amended in the second sentence by striking `provided for
in section 332 of this title'.
(c) Section 359(c)(1) of the Consolidated Farm and Rural Development
Act (7 U.S.C. 2006a(c)(1)) is amended by striking `established pursuant to
section 332,'.
(d) Section 360(a) of the Consolidated Farm and Rural Development Act
(7 U.S.C. 2006b(a)) is amended by striking `established pursuant to section
332'.
SEC. 553. EFFECTIVE DATE.
(a) IN GENERAL- Except as provided in subsection (b) and section
543(b), this title and the amendments made by this title take effect on
October 1, 2001.
(b) BOARD OF DIRECTORS OF THE FEDERAL AGRICULTURAL MORTGAGE
CORPORATION- The amendments made by section 544 take effect on the date of
enactment of this Act.
TITLE VI--RURAL DEVELOPMENT
Subtitle A--Empowerment of Rural America
SEC. 601. NATIONAL RURAL COOPERATIVE AND BUSINESS EQUITY FUND.
The Consolidated Farm and Rural Development Act (7 U.S.C. 1921 et
seq.) is amended by adding at the end the following:
`Subtitle G--National Rural Cooperative and Business Equity
Fund
`SEC. 383A. SHORT TITLE.
`This subtitle may be cited as the `National Rural Cooperative and
Business Equity Fund Act'.
`SEC. 383B. PURPOSE.
`The purpose of this subtitle is to revitalize rural communities and
enhance farm income through sustainable rural business development by
providing Federal funds and credit enhancements to a private equity fund in
order to encourage investments by institutional and noninstitutional investors
for the benefit of rural America.
`SEC. 383C. DEFINITIONS.
`(1) AUTHORIZED PRIVATE INVESTOR- The term `authorized private
investor' means an individual, legal entity, or affiliate or subsidiary of
an individual or legal entity that--
`(A) is eligible to receive a loan guarantee under this
title;
`(B) is eligible to receive a loan guarantee under the Rural
Electrification Act of 1936 (7 U.S.C. 901 et seq.);
`(C) is created under the National Consumer Cooperative Bank Act
(12 U.S.C. 3011 et seq.);
`(D) is an insured depository institution subject to section
383E(b)(2);
`(E) is a Farm Credit System institution described in section
1.2(a) of the Farm Credit Act of 1971 (12 U.S.C. 2002(a));
or
`(F) is determined by the Board to be an appropriate investor in
the Fund.
`(2) BOARD- The term `Board' means the board of directors of the
Fund established under section 383G.
`(3) FUND- The term `Fund' means the National Rural Cooperative and
Business Equity Fund established under section 383D.
`(4) GROUP OF SIMILAR AUTHORIZED PRIVATE INVESTORS- The term `group
of similar investors' means any 1 of the following:
`(A) Insured depository institutions with total assets of more
than $250,000,000.
`(B) Insured depository institutions with total assets equal to or
less than $250,000,000.
`(C) Farm Credit System institutions described in section 1.2(a)
of the Farm Credit Act of 1971 (12 U.S.C. 2002(a)).
`(D) Cooperative financial institutions (other than Farm Credit
System institutions).
`(E) Private investors, other than those described in
subparagraphs (A) through (D), authorized by the Secretary.
`(F) Other nonprofit organizations, including credit
unions.
`(5) INSURED DEPOSITORY INSTITUTION- The term `insured depository
institution' means any bank or savings association the deposits of which are
insured under the Federal Deposit Insurance Act (12 U.S.C. 1811 et
seq.).
`(6) RURAL BUSINESS- The term `rural business' means a rural
cooperative, a value-added agricultural enterprise, or any other business
located or locating in a rural area.
`SEC. 383D. ESTABLISHMENT.
`(1) IN GENERAL- On certification by the Secretary that, to the
maximum extent practicable, the parties proposing to establish a fund
provide a broad representation of all of the groups of similar authorized
private investors described in subparagraphs (A) through (F) of section
383C(4), the parties may establish a non-Federal entity under State law to
purchase shares of, and manage a fund to be known as the `National Rural
Cooperative and Business Equity Fund', to generate and provide equity
capital to rural businesses.
`(A) IN GENERAL- To the maximum extent practicable, equity
ownership of the Fund shall be distributed among authorized private
investors representing all of the groups of similar authorized private
investors described in subparagraphs (A) through (F) of section
383C(4).
`(B) EXCLUSION OF GROUPS- No group of authorized private investors
shall be excluded from equity ownership of the Fund during any period
during which the Fund is in existence if an authorized private investor
representative of the group is able and willing to invest in the
Fund.
`(b) PURPOSES- The purposes of the Fund shall be--
`(1) to strengthen the economy of rural areas;
`(2) to further sustainable rural business development;
`(A) start-up rural businesses;
`(B) increased opportunities for small and minority-owned rural
businesses; and
`(C) the formation of new rural businesses;
`(4) to enhance rural employment opportunities;
`(5) to provide equity capital to rural businesses, many of which
have difficulty obtaining equity capital; and
`(6) to leverage non-Federal funds for rural businesses.
`(c) ARTICLES OF INCORPORATION AND BYLAWS- The articles of
incorporation and bylaws of the Fund shall set forth purposes of the Fund that
are consistent with the purposes described in subsection (b).
`SEC. 383E. INVESTMENT IN THE FUND.
`(a) IN GENERAL- Of the funds made available under section 383H, the
Secretary shall--
`(1) subject to subsection (b)(1), make available to the Fund
$150,000,000;
`(2) subject to subsection (c), guarantee 50 percent of each
investment made by an authorized private investor in the Fund;
and
`(3) subject to subsection (d), guarantee the repayment of principal
of, and accrued interest on, debentures issued by the Fund to authorized
private investors.
`(1) MATCHING REQUIREMENT- Under subsection (a)(1), the Secretary
shall make an amount available to the Fund only after an equal amount has
been invested in the Fund by authorized private investors in accordance with
this subtitle and the terms and conditions set forth in the bylaws of the
Fund.
`(2) INSURED DEPOSITORY INSTITUTIONS-
`(A) IN GENERAL- Subject to subparagraphs (B) and
(C)--
`(i) an insured depository institution may be an authorized
private investor in the Fund; and
`(ii) an investment in the Fund may be considered to be part of
the record of an institution in meeting the credit needs of the
community in which the institution is located under any applicable
Federal law.
`(B) INVESTMENT LIMIT- The total investment in the Fund of an
insured depository institution shall not exceed 5 percent of the capital
and surplus of the institution.
`(C) REGULATORY AUTHORITY- An appropriate Federal banking agency
may, by regulation or order, impose on any insured depository institution
investing in the Fund, any safeguard, limitation, or condition (including
an investment limit that is lower than the investment limit under
subparagraph (B)) that the Federal banking agency considers to be
appropriate to ensure that the institution operates--
`(i) in a financially sound manner; and
`(ii) in compliance with all applicable law.
`(c) GUARANTEE OF PRIVATE INVESTMENTS-
`(1) IN GENERAL- The Secretary shall guarantee, under terms and
conditions determined by the Secretary, 50 percent of any loss of the
principal of an investment made in the Fund by an authorized private
investor.
`(2) MAXIMUM TOTAL GUARANTEE- The aggregate potential liability of
the Secretary with respect to all guarantees under paragraph (1) shall not
apply to more than $300,000,000 in private investments in the
Fund.
`(3) REDEMPTION OF GUARANTEE-
`(A) DATE- An authorized private investor in the Fund may redeem a
guarantee under paragraph (1), with respect to the total investments in
the Fund and the total losses of the authorized private investor as of the
date of redemption--
`(i) on the date that is 5 years after the date of the initial
investment by the authorized private investor; or
`(ii) annually thereafter.
`(B) EFFECT OF REDEMPTION- On redemption of a guarantee under
subparagraph (A)--
`(i) the shares in the Fund of the authorized private investor
shall be redeemed; and
`(ii) the authorized private investor shall be prohibited from
making any future investment in the Fund.
`(1) IN GENERAL- The Fund may, at the discretion of the Board,
generate additional capital through--
`(A) the issuance of debt securities; and
`(B) other means determined to be appropriate by the
Board.
`(2) GUARANTEE OF DEBT BY SECRETARY-
`(A) IN GENERAL- The Secretary shall guarantee 100 percent of the
principal of, and accrued interest on, debentures issued by the Fund that
are approved by the Secretary.
`(B) MAXIMUM DEBT GUARANTEED BY SECRETARY- The outstanding value
of debentures issued by the Fund and guaranteed by the Secretary shall not
exceed the lesser of--
`(i) the amount equal to twice the value of the assets held by
the Fund; or
`(C) RECAPTURE OF GUARANTEE PAYMENTS- If the Secretary makes a
payment on a debt security issued by the Fund as a result of a guarantee
of the Secretary under this paragraph, the Secretary shall have priority
over other creditors for repayment of the debt security.
`(3) AUTHORIZED PRIVATE INVESTORS- An authorized private investor
may purchase debt securities issued by the Fund.
`SEC. 383F. INVESTMENTS AND OTHER ACTIVITIES OF THE FUND.
`(A) TYPES- Subject to subparagraphs (B) and (C), the Fund
may--
`(i) make equity investments in a rural business that
meets--
`(I) the requirements of paragraph (6);
and
`(II) such other requirements as the Board may establish;
and
`(ii) extend credit to the rural business in--
`(I) the form of mezzanine debt or subordinated debt;
or
`(II) any other form of quasi-equity.
`(B) LIMITATIONS ON INVESTMENTS-
`(i) TOTAL INVESTMENTS BY A SINGLE RURAL BUSINESS- Subject to
clause (ii), investment by the Fund in a single rural business shall not
exceed the greater of--
`(I) an amount equal to 7 percent of the capital of the Fund;
or
`(ii) WAIVER- The Secretary may waive the limitation in clause
(i) in any case in which an investment exceeding the limits specified in
clause (i) is necessary to preserve prior investments in the rural
business.
`(iii) TOTAL NONEQUITY INVESTMENTS- Except in the case of a
project to assist a rural cooperative, the total amount of nonequity
investments described in subparagraph (A)(ii) that may be provided by
the Fund shall not exceed 20 percent of the total investments of the
Fund in the project.
`(C) LIMITATION- Notwithstanding subparagraph (B), the amount of
any investment by the Fund in a rural business shall not exceed the
aggregate amount invested in like securities by other private entities in
that rural business.
`(2) PROCEDURES- The Fund shall implement procedures to ensure
that--
`(A) the financing arrangements of the Fund meet the Fund's
primary focus of providing equity capital; and
`(B) the Fund does not compete with conventional sources of
credit.
`(3) DIVERSITY OF PROJECTS- The Fund--
`(A) shall seek to make equity investments in a variety of viable
projects, with a significant share of investments--
`(i) in smaller enterprises (as defined in section 384A) in
rural communities of diverse sizes; and
`(ii) in cooperative and noncooperative enterprises;
and
`(B) shall be managed in a manner that diversifies the risks to
the Fund among a variety of projects.
`(4) LIMITATION ON RURAL BUSINESSES ASSISTED- The Fund shall not
invest in any rural business that is primarily retail in nature (as
determined by the Board), other than a purchasing cooperative.
`(5) INTEREST RATE LIMITATIONS- Returns on investments in and by the
Fund and returns on the extension of credit by participants in projects
assisted by the Fund, shall not be subject to any State or Federal law
establishing a maximum allowable interest rate.
`(6) REQUIREMENTS FOR RECIPIENTS-
`(A) OTHER INVESTMENTS- Any recipient of amounts from the Fund
shall make or obtain a significant investment from a source of capital
other than the Fund.
`(B) SPONSORSHIP- To be considered for an equity investment from
the Fund, a rural business investment project shall be sponsored by a
regional, State, or local sponsoring or endorsing organization such
as--
`(i) a financial institution;
`(ii) a development organization; or
`(iii) any other established entity engaging or assisting in
rural business development, including a rural
cooperative.
`(b) TECHNICAL ASSISTANCE- The Fund, under terms and conditions
established by the Board, shall use not less than 2 percent of capital
provided by the Federal Government to provide technical assistance to rural
businesses seeking an equity investment from the Fund.
`(1) IN GENERAL- The Board shall authorize an annual audit of the
financial statements of the Fund by a nationally recognized auditing firm
using generally accepted accounting principles.
`(2) AVAILABILITY OF AUDIT RESULTS- The results of the audit
required by paragraph (1) shall be made available to investors in the
Fund.
`(d) ANNUAL REPORT- The Board shall prepare and make available to the
public an annual report that--
`(1) describes the projects funded with amounts from the
Fund;
`(2) specifies the recipients of amounts from the Fund;
`(3) specifies the coinvestors in all projects that receive amounts
from the Fund; and
`(4) meets the reporting requirements, if any, of the State under
the law of which the Fund is established.
`(1) IN GENERAL- The Board may exercise such other authorities as
are necessary to carry out this subtitle.
`(2) OVERSIGHT- The Secretary shall enter in to a contract with the
Administrator of the Small Business Administration under which the
Administrator of the Small Business Administration shall be responsible for
the routine duties of the Secretary in regard to the Fund.
`SEC. 383G. GOVERNANCE OF THE FUND.
`(a) IN GENERAL- The Fund shall be governed by a board of directors
that represents all of the authorized private investors in the Fund and the
Federal Government and that consists of--
`(1) a designee of the Secretary;
`(2) 2 members who are appointed by the Secretary and are not
Federal employees, including--
`(A) 1 member with expertise in venture capital investment;
and
`(B) 1 member with expertise in cooperative
development;
`(3) 8 members who are elected by the authorized private investors
with investments in the Fund; and
`(4) 1 member who is appointed by the Board and who is a community
banker from an insured depository institution that has--
`(A) total assets equal to or less than $250,000,000;
and
`(B) an investment in the Fund.
`(b) LIMITATION ON VOTING CONTROL- No individual investor or group of
authorized investors may control more than 25 percent of the votes on the
Board.
`SEC. 383H. AUTHORIZATION OF APPROPRIATIONS.
`There are authorized to be appropriated such sums as are necessary to
carry out this subtitle.'.
SEC. 602. RURAL BUSINESS INVESTMENT PROGRAM.
The Consolidated Farm and Rural Development Act (as amended by section
601) is amended by adding at the end the following:
`Subtitle H--Rural Business Investment Program
`SEC. 384A. DEFINITIONS.
`(1) ARTICLES- The term `articles' means articles of incorporation
for an incorporated body or the functional equivalent or other similar
documents specified by the Secretary for other business entities.
`(2) DEVELOPMENTAL VENTURE CAPITAL- The term `developmental venture
capital' means capital in the form of equity capital investments in Rural
Business Investment Companies with an objective of fostering economic
development in rural areas.
`(3) EMPLOYEE WELFARE BENEFIT PLAN; PENSION PLAN-
`(A) IN GENERAL- The terms `employee welfare benefit plan' and
`pension plan' have the meanings given the terms in section 3 of the
Employee Retirement Income Security Act of 1974 (29 U.S.C.
1002).
`(B) INCLUSIONS- The terms `employee welfare benefit plan' and
`pension plan' include--
`(i) public and private pension or retirement plans subject to
this subtitle; and
`(ii) similar plans not covered by this subtitle that have been
established and that are maintained by the Federal Government or any
State (including by a political subdivision, agency, or instrumentality
of the Federal Government or a State) for the benefit of
employees.
`(4) EQUITY CAPITAL- The term `equity capital' means common or
preferred stock or a similar instrument, including subordinated debt with
equity features.
`(5) LEVERAGE- The term `leverage' includes--
`(A) debentures purchased or guaranteed by the
Secretary;
`(B) participating securities purchased or guaranteed by the
Secretary; and
`(C) preferred securities outstanding as of the date of enactment
of this subtitle.
`(6) LICENSE- The term `license' means a license issued by the
Secretary as provided in section 384D(c).
`(7) LIMITED LIABILITY COMPANY- The term `limited liability company'
means a business entity that is organized and operating in accordance with a
State limited liability company law approved by the Secretary.
`(8) MEMBER- The term `member' means, with respect to a Rural
Business Investment Company that is a limited liability company, a holder of
an ownership interest or a person otherwise admitted to membership in the
limited liability company.
`(9) OPERATIONAL ASSISTANCE- The term `operational assistance' means
management, marketing, and other technical assistance that assists a rural
business concern with business development.
`(10) PARTICIPATION AGREEMENT- The term `participation agreement'
means an agreement, between the Secretary and a Rural Business Investment
Company granted final approval under section 384D(d), that requires the
Rural Business Investment Company to make investments in smaller enterprises
in rural areas.
`(A) IN GENERAL- The term `private capital' means the total
of--
`(i) the paid-in capital and paid-in surplus of a corporate
Rural Business Investment Company, the contributed capital of the
partners of a partnership Rural Business Investment Company, or the
equity investment of the members of a limited liability company Rural
Business Investment Company; and
`(ii) unfunded binding commitments, from investors that meet
criteria established by the Secretary to contribute capital to the Rural
Business Investment Company, except that unfunded commitments may be
counted as private capital for purposes of approval by the Secretary of
any request for leverage, but leverage shall not be funded based on the
commitments.
`(B) EXCLUSIONS- The term `private capital' does not
include--
`(i) any funds borrowed by a Rural Business Investment Company
from any source;
`(ii) any funds obtained through the issuance of leverage;
or
`(iii) any funds obtained directly or indirectly from the
Federal Government or any State (including by a political subdivision,
agency, or instrumentality of the Federal Government or a State), except
for--
`(I) 50 percent of funds from the National Rural Cooperative
and Business Equity Fund;
`(II) funds obtained from the business revenues (excluding any
governmental appropriation) of any federally chartered or
government-sponsored enterprise established prior to the date of
enactment of this subtitle;
`(III) funds invested by an employee welfare benefit plan or
pension plan; and
`(IV) any qualified nonprivate funds (if the investors of the
qualified nonprivate funds do not control, directly or indirectly, the
management, board of directors, general partners, or members of the
Rural Business Investment Company).
`(12) QUALIFIED NONPRIVATE FUNDS- The term `qualified nonprivate
funds' means any--
`(A) funds directly or indirectly invested in any applicant or
Rural Business Investment Company on or before the date of enactment of
this subtitle, by any Federal agency, other than the Department of
Agriculture, under a provision of law explicitly mandating the inclusion
of those funds in the definition of the term `private capital';
and
`(B) funds invested in any applicant or Rural Business Investment
Company by 1 or more entities of any State (including by a political
subdivision, agency, or instrumentality of the State and including any
guarantee extended by those entities) in an aggregate amount that does not
exceed 33 percent of the private capital of the applicant or Rural
Business Investment Company.
`(13) RURAL BUSINESS CONCERN- The term `rural business concern'
means--
`(A) a public, private, or cooperative for-profit or nonprofit
organization;
`(B) a for-profit or nonprofit business controlled by an Indian
tribe on a Federal or State reservation or other federally recognized
Indian tribal group; or
`(C) any other person or entity;
that primarily operates in a rural area, as determined by the
Secretary.
`(14) RURAL BUSINESS INVESTMENT COMPANY- The term `Rural Business
Investment Company' means a company that--
`(A) has been granted final approval by the Secretary under
section 384D(d); and
`(B) has entered into a participation agreement with the
Secretary.
`(15) SMALLER ENTERPRISE- The term `smaller enterprise' means any
rural business concern that, together with its affiliates--
`(i) a net financial worth of not more than $6,000,000, as of
the date on which assistance is provided under this subtitle to the
rural business concern; and
`(ii) an average net income for the 2-year period preceding the
date on which assistance is provided under this subtitle to the rural
business concern, of not more than $2,000,000, after Federal income
taxes (excluding any carryover losses) except that, for purposes of this
clause, if the rural business concern is not required by law to pay
Federal income taxes at the enterprise level, but is required to pass
income through to the shareholders, partners, beneficiaries, or other
equitable owners of the business concern, the net income of the business
concern shall be determined by allowing a deduction in an amount equal
to the total of--
`(I) if the rural business concern is not required by law to
pay State (and local, if any) income taxes at the enterprise level,
the net income (determined without regard to this clause), multiplied
by the marginal State income tax rate (or by the combined State and
local income tax rates, as applicable) that would have applied if the
business concern were a corporation; and
`(II) the net income (so determined) less any deduction for
State (and local) income taxes calculated under subclause (I),
multiplied by the marginal Federal income tax rate that would have
applied if the rural business concern were a corporation;
or
`(B) satisfies the standard industrial classification size
standards established by the Administrator of the Small Business
Administration for the industry in which the rural business concern is
primarily engaged.
`SEC. 384B. PURPOSES.
`The purposes of the Rural Business Investment Program established
under this subtitle are--
`(1) to promote economic development and the creation of wealth and
job opportunities in rural areas and among individuals living in those areas
by encouraging developmental venture capital investments in smaller
enterprises primarily located in rural areas; and
`(2) to establish a developmental venture capital program, with the
mission of addressing the unmet equity investment needs of small enterprises
located in rural areas, by authorizing the Secretary--
`(A) to enter into participation agreements with Rural Business
Investment Companies;
`(B) to guarantee debentures of Rural Business Investment
Companies to enable each Rural Business Investment Company to make
developmental venture capital investments in smaller enterprises in rural
areas; and
`(C) to make grants to Rural Business Investment Companies, and to
other entities, for the purpose of providing operational assistance to
smaller enterprises financed, or expected to be financed, by Rural
Business Investment Companies.
`SEC. 384C. ESTABLISHMENT.
`In accordance with this subtitle, the Secretary shall establish a
Rural Business Investment Program, under which the Secretary may--
`(1) enter into participation agreements with companies granted
final approval under section 384D(d) for the purposes set forth in section
384B;
`(2) guarantee the debentures issued by Rural Business Investment
Companies as provided in section 384E; and
`(3) make grants to Rural Business Investment Companies, and to
other entities, under section 384H.
`SEC. 384D. SELECTION OF RURAL BUSINESS INVESTMENT COMPANIES.
`(a) ELIGIBILITY- A company shall be eligible to apply to participate,
as a Rural Business Investment Company, in the program established under this
subtitle if--
`(1) the company is a newly formed for-profit entity or a newly
formed for-profit subsidiary of such an entity;
`(2) the company has a management team with experience in community
development financing or relevant venture capital financing; and
`(3) the company will invest in enterprises that will create wealth
and job opportunities in rural areas, with an emphasis on smaller
businesses.
`(b) APPLICATION- To participate, as a Rural Business Investment
Company, in the program established under this subtitle, a company meeting the
eligibility requirements of subsection (a) shall submit an application to the
Secretary that includes--
`(1) a business plan describing how the company intends to make
successful developmental venture capital investments in identified rural
areas;
`(2) information regarding the community development finance or
relevant venture capital qualifications and general reputation of the
management of the company;
`(3) a description of how the company intends to work with
community-based organizations and local entities (including local economic
development companies, local lenders, and local investors) and to seek to
address the unmet equity capital needs of the communities served;
`(4) a proposal describing how the company intends to use the grant
funds provided under this subtitle to provide operational assistance to
smaller enterprises financed by the company, including information regarding
whether the company intends to use licensed professionals, when necessary,
on the staff of the company or from an outside entity;
`(5) with respect to binding commitments to be made to the company
under this subtitle, an estimate of the ratio of cash to in-kind
contributions;
`(6) a description of the criteria to be used to evaluate whether
and to what extent the company meets the purposes of the program established
under this subtitle;
`(7) information regarding the management and financial strength of
any parent firm, affiliated firm, or any other firm essential to the success
of the business plan of the company; and
`(8) such other information as the Secretary may require.
`(c) ISSUANCE OF LICENSE-
`(1) SUBMISSION OF APPLICATION- Each applicant for a license to
operate as a Rural Business Investment Company under this subtitle shall
submit to the Secretary an application, in a form and including such
documentation as may be prescribed by the Secretary.
`(A) STATUS- Not later than 90 days after the initial receipt by
the Secretary of an application under this subsection, the Secretary shall
provide the applicant with a written report describing the status of the
application and any requirements remaining for completion of the
application.
`(B) APPROVAL OR DISAPPROVAL- Within a reasonable time after
receiving a completed application submitted in accordance with this
subsection and in accordance with such requirements as the Secretary may
prescribe by regulation, the Secretary shall--
`(i) approve the application and issue a license for the
operation to the applicant, if the requirements of this section are
satisfied; or
`(ii) disapprove the application and notify the applicant in
writing of the disapproval.
`(3) MATTERS CONSIDERED- In reviewing and processing any application
under this subsection, the Secretary--
`(A) shall determine whether--
`(i) the applicant meets the requirements of subsection (d);
and
`(ii) the management of the applicant is qualified and has the
knowledge, experience, and capability necessary to comply with this
subtitle;
`(B) shall take into consideration--
`(i) the need for and availability of financing for rural
business concerns in the geographic area in which the applicant is to
commence business;
`(ii) the general business reputation of the owners and
management of the applicant; and
`(iii) the probability of successful operations of the
applicant, including adequate profitability and financial soundness;
and
`(C) shall not take into consideration any projected shortage or
unavailability of grant funds or leverage.
`(d) APPROVAL; DESIGNATION-
`(1) IN GENERAL- Except as provided in paragraph (2), the Secretary
may approve an applicant to operate as a Rural Business Investment Company
under this subtitle and designate the applicant as a Rural Business
Investment Company, if--
`(A) the Secretary determines that the application satisfies the
requirements of subsection (b);
`(B) the area in which the Rural Business Investment Company is to
conduct its operations, and establishment of branch offices or agencies
(if authorized by the articles), are approved by the Secretary;
and
`(C) the applicant enters into a participation agreement with the
Secretary.
`(2) CAPITAL REQUIREMENTS-
`(A) IN GENERAL- Notwithstanding any other provision of this
subtitle, the Secretary may approve an applicant to operate as a Rural
Business Investment Company under this subtitle and designate the
applicant as a Rural Business Investment Company, if the Secretary
determines that the applicant--
`(i) has private capital of less than
$2,500,000;
`(ii) would otherwise be approved under this subtitle, except
that the applicant does not satisfy the requirements of section 384I(c);
and
`(iii) has a viable business plan that reasonably projects
profitable operations and that has a reasonable timetable for achieving
a level of private capital that satisfies the requirements of section
384I(c).
`(B) LEVERAGE- An applicant approved under subparagraph (A) shall
not be eligible to receive leverage under this subtitle until the
applicant satisfies the requirements of section 384I(c).
`(C) GRANTS- An applicant approved under subparagraph (A) shall be
eligible for grants under section 384H in proportion to the private
capital of the applicant, as determined by the Secretary.
`SEC. 384E. DEBENTURES.
`(a) IN GENERAL- The Secretary may guarantee the timely payment of
principal and interest, as scheduled, on debentures issued by any Rural
Business Investment Company.
`(b) TERMS AND CONDITIONS- The Secretary may make guarantees under
this section on such terms and conditions as the Secretary considers
appropriate, except that the term of any debenture guaranteed under this
section shall not exceed 15 years.
`(c) FULL FAITH AND CREDIT OF THE UNITED STATES- Section 381H(i) shall
apply to any guarantee under this section.
`(d) MAXIMUM GUARANTEE- Under this section, the Secretary
may--
`(1) guarantee the debentures issued by a Rural Business Investment
Company only to the extent that the total face amount of outstanding
guaranteed debentures of the Rural Business Investment Company does not
exceed the lesser of--
`(A) 300 percent of the private capital of the Rural Business
Investment Company; or
`(2) provide for the use of discounted debentures.
`SEC. 384F. ISSUANCE AND GUARANTEE OF TRUST CERTIFICATES.
`(a) ISSUANCE- The Secretary may issue trust certificates representing
ownership of all or a fractional part of debentures issued by a Rural Business
Investment Company and guaranteed by the Secretary under this subtitle, if the
certificates are based on and backed by a trust or pool approved by the
Secretary and composed solely of guaranteed debentures.
`(1) IN GENERAL- The Secretary may, under such terms and conditions
as the Secretary considers appropriate, guarantee the timely payment of the
principal of and interest on trust certificates issued by the Secretary or
agents of the Secretary for purposes of this section.
`(2) LIMITATION- Each guarantee under this subsection shall be
limited to the extent of principal and interest on the guaranteed debentures
that compose the trust or pool.
`(3) PREPAYMENT OR DEFAULT-
`(A) IN GENERAL- In the event a debenture in a trust or pool is
prepaid, or in the event of default of such a debenture, the guarantee of
timely payment of principal and interest on the trust certificates shall
be reduced in proportion to the amount of principal and interest the
prepaid debenture represents in the trust or pool.
`(B) INTEREST- Interest on prepaid or defaulted debentures shall
accrue and be guaranteed by the Secretary only through the date of payment
of the guarantee.
`(C) REDEMPTION- At any time during its term, a trust certificate
may be called for redemption due to prepayment or default of all
debentures.
`(c) FULL FAITH AND CREDIT OF THE UNITED STATES- Section 381H(i) shall
apply to any guarantee of a trust certificate issued by the Secretary under
this section.
`(d) SUBROGATION AND OWNERSHIP RIGHTS-
`(1) SUBROGATION- If the Secretary pays a claim under a guarantee
issued under this section, the claim shall be subrogated fully to the rights
satisfied by the payment.
`(2) OWNERSHIP RIGHTS- No Federal, State, or local law shall
preclude or limit the exercise by the Secretary of the ownership rights of
the Secretary in a debenture residing in a trust or pool against which 1 or
more trust certificates are issued under this section.
`(e) MANAGEMENT AND ADMINISTRATION-
`(1) REGISTRATION- The Secretary shall provide for a central
registration of all trust certificates issued under this section.
`(2) CREATION OF POOLS- The Secretary may--
`(A) maintain such commercial bank accounts or investments in
obligations of the United States as may be necessary to facilitate the
creation of trusts or pools backed by debentures guaranteed under this
subtitle; and
`(B) issue trust certificates to facilitate the creation of those
trusts or pools.
`(3) FIDELITY BOND OR INSURANCE REQUIREMENT- Any agent performing
functions on behalf of the Secretary under this paragraph shall provide a
fidelity bond or insurance in such amount as the Secretary considers to be
necessary to fully protect the interests of the United States.
`(4) REGULATION OF BROKERS AND DEALERS- The Secretary may regulate
brokers and dealers in trust certificates issued under this
section.
`(5) ELECTRONIC REGISTRATION- Nothing in this subsection prohibits
the use of a book-entry or other electronic form of registration for trust
certificates issued under this section.
`SEC. 384G. FEES.
`(a) IN GENERAL- The Secretary may charge such fees as the Secretary
considers appropriate with respect to any guarantee or grant issued under this
subtitle.
`(b) TRUST CERTIFICATE- Notwithstanding subsection (a), the Secretary
shall not collect a fee for any guarantee of a trust certificate under section
384F, except that any agent of the Secretary may collect a fee approved by the
Secretary for the functions described in section 384F(e)(2).
`(1) IN GENERAL- The Secretary may prescribe fees to be paid by each
applicant for a license to operate as a Rural Business Investment Company
under this subtitle.
`(2) USE OF AMOUNTS- Fees collected under this
subsection--
`(A) shall be deposited in the account for salaries and expenses
of the Secretary; and
`(B) are authorized to be appropriated solely to cover the costs
of licensing examinations.
`SEC. 384H. OPERATIONAL ASSISTANCE GRANTS.
`(a) IN GENERAL- In accordance with this section, the Secretary may
make grants to Rural Business Investment Companies and to other entities, as
authorized by this subtitle, to provide operational assistance to smaller
enterprises financed, or expected to be financed, by the entities.
`(b) TERMS- Grants made under this section shall be made over a
multiyear period (not to exceed 10 years) under such other terms as the
Secretary may require.
`(c) USE OF FUNDS- The proceeds of a grant made under this section may
be used by the Rural Business Investment Company receiving the grant only to
provide operational assistance in connection with an equity or prospective
equity investment in a business located in a rural area.
`(d) SUBMISSION OF PLANS- A Rural Business Investment Company shall be
eligible for a grant under this section only if the Rural Business Investment
Company submits to the Secretary, in such form and manner as the Secretary may
require, a plan for use of the grant.
`(1) RURAL BUSINESS INVESTMENT COMPANIES- The amount of a grant made
under this section to a Rural Business Investment Company shall be equal to
the lesser of--
`(A) 10 percent of the private capital raised by the Rural
Business Investment Company; or
`(2) OTHER ENTITIES- The amount of a grant made under this section
to any entity other than a Rural Business Investment Company shall be equal
to the resources (in cash or in kind) raised by the entity in accordance
with the requirements applicable to Rural Business Investment Companies
under this subtitle.
`SEC. 384I. RURAL BUSINESS INVESTMENT COMPANIES.
`(a) ORGANIZATION- For the purpose of this subtitle, a Rural Business
Investment Company shall--
`(1) be an incorporated body, a limited liability company, or a
limited partnership organized and chartered or otherwise existing under
State law solely for the purpose of performing the functions and conducting
the activities authorized by this subtitle;
`(2)(A) if incorporated, have succession for a period of not less
than 30 years unless earlier dissolved by the shareholders of the Rural
Business Investment Company; and
`(B) if a limited partnership or a limited liability company, have
succession for a period of not less than 10 years; and
`(3) possess the powers reasonably necessary to perform the
functions and conduct the activities.
`(b) ARTICLES- The articles of any Rural Business Investment
Company--
`(1) shall specify in general terms--
`(A) the purposes for which the Rural Business Investment Company
is formed;
`(B) the name of the Rural Business Investment
Company;
`(C) the area or areas in which the operations of the Rural
Business Investment Company are to be carried out;
`(D) the place where the principal office of the Rural Business
Investment Company is to be located; and
`(E) the amount and classes of the shares of capital stock of the
Rural Business Investment Company;
`(2) may contain any other provisions consistent with this subtitle
that the Rural Business Investment Company may determine appropriate to
adopt for the regulation of the business of the Rural Business Investment
Company and the conduct of the affairs of the Rural Business Investment
Company; and
`(3) shall be subject to the approval of the Secretary.
`(c) CAPITAL REQUIREMENTS-
`(1) IN GENERAL- Except as provided in paragraph (2), the private
capital of each Rural Business Investment Company shall be not less
than--
`(B) $10,000,000, with respect to each Rural Business Investment
Company authorized or seeking authority to issue participating securities
to be purchased or guaranteed by the Secretary under this
subtitle.
`(2) EXCEPTION- The Secretary may, in the discretion of the
Secretary and based on a showing of special circumstances and good cause,
permit the private capital of a Rural Business Investment Company described
in paragraph (1)(B) to be less than $10,000,000, but not less than
$5,000,000, if the Secretary determines that the action would not create or
otherwise contribute to an unreasonable risk of default or loss to the
Federal Government.
`(3) ADEQUACY- In addition to the requirements of paragraph (1), the
Secretary shall--
`(A) determine whether the private capital of each Rural Business
Investment Company is adequate to ensure a reasonable prospect that the
Rural Business Investment Company will be operated soundly and profitably,
and managed actively and prudently in accordance with the articles of the
Rural Business Investment Company;
`(B) determine that the Rural Business Investment Company will be
able to comply with the requirements of this subtitle;
`(C) require that at least 75 percent of the capital of each Rural
Business Investment Company is invested in rural business concerns and not
more than 10 percent of the investments shall be made in an area
containing a city of over 100,000 in the last decennial census and the
Census Bureau defined urbanized area containing or adjacent to that
city;
`(D) ensure that the Rural Business Investment Company is designed
primarily to meet equity capital needs of the businesses in which the
Rural Business Investment Company invests and not to compete with
traditional small business financing by commercial lenders;
and
`(E) require that the Rural Business Investment Company makes
short-term non-equity investments of less than 5 years only to the extent
necessary to preserve an existing investment.
`(d) DIVERSIFICATION OF OWNERSHIP- The Secretary shall ensure that the
management of each Rural Business Investment Company licensed after the date of
enactment of this subtitle is sufficiently diversified from and unaffiliated
with the ownership of the Rural Business Investment Company so as to ensure
independence and objectivity in the financial management and oversight of the
investments and operations of the Rural Business Investment Company.
`SEC. 384J. FINANCIAL INSTITUTION INVESTMENTS.
`(a) IN GENERAL- Except as otherwise provided in this section and
notwithstanding any other provision of law, the following banks, associations,
and institutions are eligible both to establish and invest in any Rural
Business Investment Company or in any entity established to invest solely in
Rural Business Investment Companies:
`(1) Any bank or savings association the deposits of which are
insured under the Federal Deposit Insurance Act (12 U.S.C. 1811 et
seq.)
`(2) Any Farm Credit System institution described in section 1.2(a)
of the Farm Credit Act of 1971 (12 U.S.C. 2002(a)).
`(b) LIMITATION- No bank, association, or institution described in
subsection (a) may make investments described in subsection (a) that are
greater than 5 percent of the capital and surplus of the bank, association, or
institution.
`(c) LIMITATION ON RURAL BUSINESS INVESTMENT COMPANIES CONTROLLED BY
FARM CREDIT SYSTEM INSTITUTIONS- If a Farm Credit System institution described
in section 1.2(a) of the Farm Credit Act of 1971 (12 U.S.C. 2002(a)) holds
more than 15 percent of the shares of a Rural Business Investment Company,
either alone or in conjunction with other System institutions (or affiliates),
the Rural Business Investment Company shall not provide equity investments in,
or provide other financial assistance to, entities that are not otherwise
eligible to receive financing from the Farm Credit System under that Act (12
U.S.C. 2001 et seq.).
`SEC. 384K. REPORTING REQUIREMENTS.
`(a) RURAL BUSINESS INVESTMENT COMPANIES- Each Rural Business
Investment Company that participates in the program established under this
subtitle shall provide to the Secretary such information as the Secretary may
require, including--
`(1) information relating to the measurement criteria that the Rural
Business Investment Company proposed in the program application of the Rural
Business Investment Company; and
`(2) in each case in which the Rural Business Investment Company
under this subtitle makes an investment in, or a loan or grant to, a
business that is not located in a rural area, a report on the number and
percentage of employees of the business who reside in those
areas.
`(1) IN GENERAL- The Secretary shall prepare and make available to
the public an annual report on the program established under this subtitle,
including detailed information on--
`(A) the number of Rural Business Investment Companies licensed by
the Secretary during the previous fiscal year;
`(B) the aggregate amount of leverage that Rural Business
Investment Companies have received from the Federal Government during the
previous fiscal year;
`(C) the aggregate number of each type of leveraged instruments
used by Rural Business Investment Companies during the previous fiscal
year and how each number compares to previous fiscal years;
`(D) the number of Rural Business Investment Company licenses
surrendered and the number of Rural Business Investment Companies placed
in liquidation during the previous fiscal year, identifying the amount of
leverage each Rural Business Investment Company has received from the
Federal Government and the type of leverage instruments each Rural
Business Investment Company has used;
`(E) the amount of losses sustained by the Federal Government as a
result of operations under this subtitle during the previous fiscal year
and an estimate of the total losses that the Federal Government can
reasonably expect to incur as a result of the operations during the
current fiscal year;
`(F) actions taken by the Secretary to maximize recoupment of
funds of the Federal Government incurred to implement and administer the
Rural Business Investment Program under this subtitle during the previous
fiscal year and to ensure compliance with the requirements of this
subtitle (including regulations);
`(G) the amount of Federal Government leverage that each licensee
received in the previous fiscal year and the types of leverage instruments
each licensee used;
`(H) for each type of financing instrument, the sizes, types of
geographic locations, and other characteristics of the small business
investment companies using the instrument during the previous fiscal year,
including the extent to which the investment companies have used the
leverage from each instrument to make loans or equity investments in rural
areas; and
`(I) the actions of the Secretary to carry out this
subtitle.
`(2) PROHIBITION- In compiling the report required under paragraph
(1), the Secretary may not--
`(A) compile the report in a manner that permits identification of
any particular type of investment by an individual Rural Business
Investment Company or small business concern in which a Rural Business
Investment Company invests; and
`(B) may not release any information that is prohibited under
section 1905 of title 18, United States Code.
`SEC. 384L. EXAMINATIONS.
`(a) IN GENERAL- Each Rural Business Investment Company that
participates in the program established under this subtitle shall be subject
to examinations made at the direction of the Secretary in accordance with this
section.
`(b) ASSISTANCE OF PRIVATE SECTOR ENTITIES- An examination under this
section may be conducted with the assistance of a private sector entity that
has the qualifications and the expertise necessary to conduct such an
examination.
`(1) IN GENERAL- The Secretary may assess the cost of an examination
under this section, including compensation of the examiners, against the
Rural Business Investment Company examined.
`(2) PAYMENT- Any Rural Business Investment Company against which
the Secretary assesses costs under this paragraph shall pay the
costs.
`(d) DEPOSIT OF FUNDS- Funds collected under this section
shall--
`(1) be deposited in the account that incurred the costs for
carrying out this section;
`(2) be made available to the Secretary to carry out this section,
without further appropriation; and
`(3) remain available until expended.
`SEC. 384M. INJUNCTIONS AND OTHER ORDERS.
`(1) APPLICATION BY SECRETARY- Whenever, in the judgment of the
Secretary, a Rural Business Investment Company or any other person has
engaged or is about to engage in any act or practice that constitutes or
will constitute a violation of a provision of this subtitle (including any
rule, regulation, order, or participation agreement under this subtitle),
the Secretary may apply to the appropriate district court of the United
States for an order enjoining the act or practice, or for an order enforcing
compliance with the provision, rule, regulation, order, or participation
agreement.
`(2) JURISDICTION; RELIEF- The court shall have jurisdiction over
the action and, on a showing by the Secretary that the Rural Business
Investment Company or other person has engaged or is about to engage in an
act or practice described in paragraph (1), a permanent or temporary
injunction, restraining order, or other order, shall be granted without
bond.
`(1) IN GENERAL- In any proceeding under subsection (a), the court
as a court of equity may, to such extent as the court considers necessary,
take exclusive jurisdiction over the Rural Business Investment Company and
the assets of the Rural Business Investment Company, wherever
located.
`(2) TRUSTEE OR RECEIVER- The court shall have jurisdiction in any
proceeding described in paragraph (1) to appoint a trustee or receiver to
hold or administer the assets.
`(c) SECRETARY AS TRUSTEE OR RECEIVER-
`(1) AUTHORITY- The Secretary may act as trustee or receiver of a
Rural Business Investment Company.
`(2) APPOINTMENT- On the request of the Secretary, the court shall
appoint the Secretary to act as a trustee or receiver of a Rural Business
Investment Company unless the court considers the appointment inequitable or
otherwise inappropriate by reason of any special circumstances
involved.
`SEC. 384N. ADDITIONAL PENALTIES FOR NONCOMPLIANCE.
`(a) IN GENERAL- With respect to any Rural Business Investment Company
that violates or fails to comply with this subtitle (including any rule,
regulation, order, or participation agreement under this subtitle), the
Secretary may, in accordance with this section--
`(1) void the participation agreement between the Secretary and the
Rural Business Investment Company; and
`(2) cause the Rural Business Investment Company to forfeit all of
the rights and privileges derived by the Rural Business Investment Company
under this subtitle.
`(b) ADJUDICATION OF NONCOMPLIANCE-
`(1) IN GENERAL- Before the Secretary may cause a Rural Business
Investment Company to forfeit rights or privileges under subsection (a), a
court of the United States of competent jurisdiction must find that the
Rural Business Investment Company committed a violation, or failed to
comply, in a cause of action brought for that purpose in the district,
territory, or other place subject to the jurisdiction of the United States,
in which the principal office of the Rural Business Investment Company is
located.
`(2) PARTIES AUTHORIZED TO FILE CAUSES OF ACTION- Each cause of
action brought by the United States under this subsection shall be brought
by the Secretary or by the Attorney General.
`SEC. 384O. UNLAWFUL ACTS AND OMISSIONS; BREACH OF FIDUCIARY
DUTY.
`(a) PARTIES DEEMED TO COMMIT A VIOLATION- Whenever any Rural Business
Investment Company violates this subtitle (including any rule, regulation,
order, or participation agreement under this subtitle), by reason of the
failure of the Rural Business Investment Company to comply with this subtitle
or by reason of its engaging in any act or practice that constitutes or will
constitute a violation of this subtitle, the violation shall also be deemed to
be a violation and an unlawful act committed by any person that, directly or
indirectly, authorizes, orders, participates in, causes, brings about,
counsels, aids, or abets in the commission of any acts, practices, or
transactions that constitute or will constitute, in whole or in part, the
violation.
`(b) FIDUCIARY DUTIES- It shall be unlawful for any officer, director,
employee, agent, or other participant in the management or conduct of the
affairs of a Rural Business Investment Company to engage in any act or
practice, or to omit any act or practice, in breach of the fiduciary duty of
the officer, director, employee, agent, or participant if, as a result of the
act or practice, the Rural Business Investment Company suffers or is in
imminent danger of suffering financial loss or other damage.
`(c) UNLAWFUL ACTS- Except with the written consent of the Secretary,
it shall be unlawful--
`(1) for any person to take office as an officer, director, or
employee of any Rural Business Investment Company, or to become an agent or
participant in the conduct of the affairs or management of a Rural Business
Investment Company, if the person--
`(A) has been convicted of a felony, or any other criminal offense
involving dishonesty or breach of trust; or
`(B) has been found civilly liable in damages, or has been
permanently or temporarily enjoined by an order, judgment, or decree of a
court of competent jurisdiction, by reason of any act or practice
involving fraud, or breach of trust; and
`(2) for any person to continue to serve in any of the capacities
described in paragraph (1), if--
`(A) the person is convicted of a felony, or any other criminal
offense involving dishonesty or breach of trust; or
`(B) the person is found civilly liable in damages, or is
permanently or temporarily enjoined by an order, judgment, or decree of a
court of competent jurisdiction, by reason of any act or practice
involving fraud or breach of trust.
`SEC. 384P. REMOVAL OR SUSPENSION OF DIRECTORS OR OFFICERS.
`Using the procedures established by the Secretary for removing or
suspending a director or an officer of a Rural Business Investment Company,
the Secretary may remove or suspend any director or officer of any Rural
Business Investment Company.
`SEC. 384Q. CONTRACTING OF FUNCTIONS.
`Notwithstanding any other provision of law, the Secretary shall enter
into an interagency agreement with the Administrator of the Small Business
Administration to carry out, on behalf of the Secretary, the day-to-day
management and operation of the program authorized by this subtitle.
`SEC. 384R. REGULATIONS.
`The Secretary may promulgate such regulations as the Secretary
considers necessary to carry out this subtitle.
`SEC. 384S. FUNDING.
`(a) IN GENERAL- Not later than 30 days after the date of enactment of
this Act, out of any funds in the Treasury not otherwise appropriated, the
Secretary of the Treasury shall transfer to the Secretary of
Agriculture--
`(1) such sums as may be necessary for the cost of guaranteeing
$350,000,000 of debentures under this subtitle; and
`(2) $50,000,000 to make grants under this subtitle.
`(b) RECEIPT AND ACCEPTANCE- The Secretary shall be entitled to
receive, shall accept, and shall use to carry out this section the funds
transferred under subsection (a), without further appropriation.
`(c) AVAILABILITY OF FUNDS- Funds transferred under subsection (a)
shall remain available until expended.'.
SEC. 603. FULL FUNDING OF PENDING RURAL DEVELOPMENT LOAN AND GRANT
APPLICATIONS.
(a) DEFINITION OF APPLICATION- In this section, the term `application'
does not include an application for a loan, loan guarantee, or grant that, as
of the date of enactment of this Act, is in the preapplication phase of
consideration under regulations of the Secretary of Agriculture in effect on
the date of enactment of this Act.
(b) ACCOUNT- There is established in the Treasury of the United States
an account to be known as the `Rural America Infrastructure Development
Account' (referred to in this section as the `Account') to fund rural
development loans, loan guarantees, and grants described in subsection (d)
that are pending on the date of enactment of this Act.
(1) IN GENERAL- Not later than 30 days after the date of enactment
of this Act, out of any funds in the Treasury not otherwise appropriated,
the Secretary of the Treasury shall transfer to the Secretary of Agriculture
such sums as are necessary to carry out this section, to remain available
until expended.
(2) RECEIPT AND ACCEPTANCE- The Secretary shall be entitled to
receive, shall accept, and shall use to carry out this section the funds
transferred under paragraph (1), without further appropriation.
(1) ELIGIBLE PROGRAMS- Subject to paragraph (2), the Secretary shall
use the funds in the Account to provide funds for applications that are
pending on the date of enactment of this Act for--
(A) community facility direct loans under section 306(a)(1) of the
Consolidated Farm and Rural Development Act (7 U.S.C.
1926(a)(1));
(B) community facility grants under paragraph (19), (20), or (21)
of section 306(a) of that Act (7 U.S.C. 1926(a));
(C) water or waste disposal grants or direct loans under paragraph
(1) or (2) of section 306(a) of that Act (7 U.S.C. 1926(a));
(D) rural water or wastewater technical assistance and training
grants under section 306(a)(14) of that Act (7 U.S.C.
1926(a)(14));
(E) emergency community water assistance grants under section 306A
of that Act (7 U.S.C. 1926a);
(F) business and industry guaranteed loans authorized under
section 310B(a)(1)(A) of that Act (7 U.S.C. 1932(a)(1)(A));
and
(G) solid waste management grants under section 310B(b) of that
Act (7 U.S.C. 1932(b)).
(A) APPROPRIATED AMOUNTS- Funds in the Account shall be available
to the Secretary to provide funds for pending applications for loans, loan
guarantees, and grants described in paragraph (1) only to the extent that
funds for the loans, loan guarantees, and grants appropriated in the
annual appropriations Act for fiscal year 2002 have been
exhausted.
(B) PROGRAM REQUIREMENTS- The Secretary may use the Account to
provide funds for a pending application for a loan, loan guarantee, or
grant described in paragraph (1) only if the Secretary processes, reviews,
and approves the application in accordance with regulations in effect on
the date of enactment of this Act.
SEC. 604. RURAL ENDOWMENT PROGRAM.
(a) IN GENERAL- The Consolidated Farm and Rural Development Act (7
U.S.C. 1921 et seq.) (as amended by section 602) is amended by adding at the
end the following:
`Subtitle I--Rural Endowment Program
`SEC. 385A. PURPOSE.
`The purpose of this subtitle is to provide rural communities with
technical and financial assistance to implement comprehensive community
development strategies to reduce the economic and social distress resulting
from poverty, high unemployment, outmigration, plant closings, agricultural
downturn, declines in the natural resource-based economy, or environmental
degradation.
`SEC. 385B. DEFINITIONS.
`(1) COMPREHENSIVE COMMUNITY DEVELOPMENT STRATEGY- The term
`comprehensive community development strategy' means a community development
strategy described in section 385C(e).
`(2) ELIGIBLE RURAL AREA-
`(A) IN GENERAL- The term `eligible rural area' means an area with
a population of 25,000 inhabitants or less, as determined by the Secretary
using the most recent decennial census.
`(B) EXCLUSIONS- The term `eligible rural area' does not
include--
`(i) any area designated by the Secretary as a rural empowerment
zone or rural enterprise community; or
`(ii) an urbanized area immediately adjacent to an incorporated
city or town with a population of more than 25,000
inhabitants.
`(3) ENDOWMENT FUND- The term `endowment fund' means a long-term
fund that an approved program entity is required to establish under section
385C(f)(3).
`(4) PERFORMANCE-BASED BENCHMARKS- The term `performance-based
benchmarks' means a set of annualized goals and tasks established by a
recipient of a grant under the Program, in collaboration with the Secretary,
for the purpose of measuring performance in meeting the comprehensive
community development strategy of the recipient.
`(5) PROGRAM- The term `Program' means the Rural Endowment Program
established under section 385C(a).
`(6) PROGRAM ENTITY- The term `program entity' means--
`(A) a private nonprofit community-based development
organization;
`(B) a unit of local government (including a multijurisdictional
unit of local government);
`(C) an Indian tribe (as defined in section 4 of the Indian
Self-Determination and Education Assistance Act (25 U.S.C.
450b));
`(D) a consortium comprised of an organization described in
subparagraph (A) and a unit of local government; or
`(E) a consortium of entities specified in subparagraphs (A)
through (D);
that serves an eligible rural area.
`(7) PROGRAM-RELATED INVESTMENT- The term `program-related
investment' means--
`(A) a loan, loan guarantee, grant, payment of a technical fee, or
other expenditure provided for an affordable housing, community facility,
small business, environmental improvement, or other community development
project that is part of a comprehensive community development strategy;
and
`(B) support services relating to a project described in
subparagraph (A).
`SEC. 385C. RURAL ENDOWMENT PROGRAM.
`(1) IN GENERAL- The Secretary may establish a program, to be known
as the `Rural Endowment Program', to provide approved program entities with
assistance in developing and implementing comprehensive community
development strategies for eligible rural areas.
`(2) PURPOSES- The purposes of the Program are--
`(A) to enhance the ability of an eligible rural area to engage in
comprehensive community development;
`(B) to leverage private and public resources for the benefit of
community development efforts in eligible rural areas;
`(C) to make available staff of Federal agencies to directly
assist the community development efforts of an approved program entity or
eligible rural area; and
`(D) to strengthen the asset base of an eligible rural area to
further long-term, ongoing community development.
`(1) IN GENERAL- To receive an endowment grant under the Program,
the eligible entity shall submit an application at such time, in such form,
and containing such information as the Secretary may require.
`(2) REGIONAL APPLICATIONS-
`(A) IN GENERAL- Where appropriate, the Secretary shall encourage
regional applications from program entities serving more than 1 eligible
rural area.
`(B) CRITERIA FOR APPLICATIONS- To be eligible for an endowment
grant for a regional application, the program entities that submit the
application shall demonstrate that--
`(i) a comprehensive community development strategy for the
eligible rural areas is best accomplished through a regional approach;
and
`(ii) the combined population of the eligible rural areas
covered by the comprehensive community development strategy is 75,000
inhabitants or less.
`(C) WAIVER FOR INDIAN TRIBES- The Secretary may, at the request
of an Indian tribe, waive the requirement under subparagraph (B)(ii) with
respect to an application submitted by the Indian tribe for multiple
eligible rural areas under the jurisdiction of the Indian
tribe.
`(D) AMOUNT OF ENDOWMENT GRANTS- For the purpose of subsection
(f)(2), 2 or more program entities that submit a regional application
shall be considered to be a single program entity.
`(3) PREFERENCE- The Secretary shall give preference to a joint
application submitted by a private, nonprofit community development
corporation and a unit of local government or Indian tribe.
`(c) ENTITY APPROVAL- The Secretary shall approve a program entity to
receive grants under the Program, if the program entity meets criteria
established by the Secretary, including the following:
`(1) DISTRESSED RURAL AREA- The program entity shall serve a rural
area that suffers from economic or social distress resulting from poverty,
high unemployment, outmigration, plant closings, agricultural downturn,
declines in the natural resource-based economy, or environmental
degradation.
`(2) CAPACITY TO IMPLEMENT STRATEGY- The program entity shall
demonstrate the capacity to implement a comprehensive community development
strategy.
`(3) GOALS- The goals described in the application submitted under
subsection (b) shall be consistent with this section.
`(4) PARTICIPATION PROCESS- The program entity shall demonstrate the
ability to convene and maintain a multi-stakeholder, community-based
participation process.
`(d) PLANNING GRANTS TO CONDITIONALLY APPROVED PROGRAM ENTITIES-
`(1) IN GENERAL- The Secretary may award supplemental grants to
approved program entities to assist the approved program entities in the
development of a comprehensive community development strategy under
subsection (e).
`(2) ELIGIBILITY FOR SUPPLEMENTAL GRANTS- In determining whether to
award a supplemental grant to an approved program entity, the Secretary
shall consider the economic need of the approved program entity.
`(3) LIMITATIONS ON AMOUNT OF GRANTS- Under this subsection, an
approved program entity may receive a supplemental grant in an amount
of--
`(A) not more than $100,000; or
`(B) in the case of a regional application approved under a waiver
by the Secretary under subsection (b)(2)(C), not more than
$200,000.
`(e) ENDOWMENT GRANT AWARD-
`(1) IN GENERAL- To be eligible for an endowment grant under the
Program, an approved program entity shall develop, and obtain the approval
of the Secretary for, a comprehensive community development strategy
that--
`(A) is designed to reduce economic or social distress resulting
from poverty, high unemployment, outmigration, plant closings,
agricultural downturn, declines in the natural resource-based economy, or
environmental degradation;
`(B) addresses a broad range of the development needs of a
community, including economic, social, and environmental needs, for a
period of not less than 10 years;
`(C) is developed with input from a broad array of local
governments and business, civic, and community
organizations;
`(D) specifies measurable performance-based outcomes for all
activities; and
`(E) includes a financial plan for achieving the outcomes and
activities of the comprehensive community development strategy that
identifies sources for, or a plan to meet, the requirement for a
non-Federal share under subsection (f)(4)(B).
`(A) IN GENERAL- An approved program entity shall receive final
approval if the Secretary determines that--
`(i) the comprehensive community development strategy of the
approved program entity meets the requirements of this
section;
`(ii) the management and organizational structure of the
approved program entity is sufficient to oversee fund and development
activities;
`(iii) the approved program entity has established an endowment
fund; and
`(iv) the approved program entity will be able to provide the
non-Federal share required under subsection (f)(4)(B).
`(B) CONDITIONS- As part of the final approval, the approved
program entity shall agree to--
`(i) achieve, to the maximum extent practicable,
performance-based benchmarks; and
`(ii) comply with the terms of the comprehensive community
development strategy for a period of not less than 10
years.
`(1) IN GENERAL- Under the Program, the Secretary may make endowment
grants to approved program entities with final approval to implement an
approved comprehensive community development strategy.
`(2) AMOUNT OF GRANTS- An endowment grant to an approved program
entity shall be in an amount of not more than $6,000,000, as determined by
the Secretary based on--
`(A) the size of the population of the eligible rural area for
which the endowment grant is to be used;
`(B) the size of the eligible rural area for which the endowment
grant is to be used;
`(C) the extent of the comprehensive community development
strategy to be implemented using the endowment grant award;
and
`(D) the extent to which the community suffers from economic or
social distress resulting from--
`(v) agricultural downturn;
`(vi) declines in the natural resource-based economy;
or
`(vii) environmental degradation.
`(A) ESTABLISHMENT- On notification from the Secretary that the
program entity has been approved under subsection (c), the approved
program entity shall establish an endowment fund.
`(B) FUNDING OF ENDOWMENT- Federal funds provided in the form of
an endowment grant under the Program shall--
`(i) be deposited in the endowment fund;
`(ii) be the sole property of the approved program
entity;
`(iii) be used in a manner consistent with this subtitle;
and
`(iv) be subject to oversight by the Secretary for a period of
not more than 10 years.
`(C) INTEREST- Interest earned on Federal funds in the endowment
fund shall be--
`(i) retained by the grantee; and
`(ii) treated as Federal funds are treated under subparagraph
(B).
`(D) LIMITATION- The Secretary shall promulgate regulations on
matching funds and returns on program-related investments only to the
extent that such funds or proceeds are used in a manner consistent with
this subtitle.
`(i) IN GENERAL- Each endowment grant award shall be disbursed
during a period not to exceed 5 years beginning during the fiscal year
containing the date of final approval of the approved program entity
under subsection (e)(3).
`(ii) MANNER OF DISBURSEMENT- Subject to subparagraph (B), the
Secretary may disburse a grant award in 1 lump sum or in incremental
disbursements made each fiscal year.
`(iii) INCREMENTAL DISBURSEMENTS- If the Secretary elects to
make incremental disbursements, for each fiscal year after the initial
disbursement, the Secretary shall make a disbursement under clause (i)
only if the approved program entity--
`(I) has met the performance-based benchmarks of the approved
program entity for the preceding fiscal year; and
`(II) has provided the non-Federal share required for the
preceding fiscal year under subparagraph (B).
`(iv) ADVANCE DISBURSEMENTS- The Secretary may make
disbursements under this paragraph notwithstanding any provision of law
limiting grant disbursements to amounts necessary to cover expected
expenses on a term basis.
`(i) IN GENERAL- Except as provided in clause (ii), for each
disbursement under subparagraph (A), the Secretary shall require the
approved program entity to provide a non-Federal share in an amount
equal to 50 percent of the amount of funds received by the approved
program entity under the disbursement.
`(ii) LOWER NON-FEDERAL SHARE- In the case of an approved
program entity that serves a small, poor rural area or poor Indian tribe
(as determined by the Secretary), the Secretary may--
`(I) reduce the non-Federal share to not less than 20 percent;
and
`(II) allow the non-Federal share to be provided in the form
of in-kind contributions.
`(iii) BINDING COMMITMENTS; PLAN- For the purpose of meeting the
non-Federal share requirement with respect to the first disbursement of
an endowment grant award to the approved program entity under the
Program, an approved program entity shall--
`(I) have, at a minimum, binding commitments to provide the
non-Federal share required with respect to the first disbursement of
the endowment grant award; and
`(II) if the Secretary is making incremental disbursements of
a grant, develop a viable plan for providing the remaining amount of
the required non-Federal share.
`(i) IN GENERAL- Subject to clause (ii), of each disbursement,
an approved program entity shall use--
`(I) not more than 10 percent for administrative costs of
carrying out program-related investments;
`(II) not more than 20 percent for the purpose of maintaining
a loss reserve account; and
`(III) the remainder for program-related investments contained
in the comprehensive community development
strategy.
`(ii) LOSS RESERVE ACCOUNT- If all disbursed funds available
under a grant are expended in accordance with clause (i) and the grant
recipient has no expected losses to cover for a fiscal year, the
recipient may use funds in the loss reserve account described in clause
(i)(II) for program-related investments described in clause (i)(III) for
which no reserve for losses is required.
`(g) FEDERAL AGENCY ASSISTANCE- Under the Program, the Secretary shall
provide and coordinate technical assistance for grant recipients by designated
field staff of Federal agencies.
`(h) PRIVATE TECHNICAL ASSISTANCE-
`(1) IN GENERAL- Under the Program, the Secretary may make grants to
qualified intermediaries to provide technical assistance and capacity
building to approved program entities under the Program.
`(2) DUTIES- A qualified intermediary that receives a grant under
this subsection shall--
`(A) provide assistance to approved program entities in
developing, coordinating, and overseeing investment
strategy;
`(B) provide technical assistance in all aspects of planning,
developing, and managing the Program; and
`(C) facilitate Federal and private sector involvement in rural
community development.
`(3) ELIGIBILITY- To be considered a qualified intermediary under
this subsection, an intermediary shall--
`(A) be a private, nonprofit community development
organization;
`(B) have expertise in Federal or private rural community
development policy or programs; and
`(C) have experience in providing technical assistance, planning,
and capacity building assistance to rural communities and nonprofit
entities in eligible rural areas.
`(4) MAXIMUM AMOUNT OF GRANTS- A qualified intermediary may receive
a grant under this subsection of not more than $100,000.
`(5) FUNDING- Of the amounts made available under section 385D, the
Secretary may use to carry out this subsection not more than $2,000,000 for
each of not more than 2 fiscal years.
`SEC. 385D. FUNDING.
`(a) FISCAL YEARS 2002 AND 2003-
`(1) IN GENERAL- Not later than 30 days after the date of enactment
of this subtitle, out of any funds in the Treasury not otherwise
appropriated, the Secretary of the Treasury shall transfer to the Secretary
of Agriculture to carry out this subtitle $82,000,000 for the period of
fiscal years 2002 and 2003, to remain available until expended.
`(2) SCHEDULE FOR OBLIGATIONS- Of the amounts made available under
paragraph (1)--
`(A) not more than $5,000,000 shall be obligated to carry out
section 385C(d);
`(B) not less than $75,000,000 shall be obligated to carry out
section 385C(f); and
`(C) not less than $2,000,000 shall be obligated to carry out
section 385C(h).
`(3) RECEIPT AND ACCEPTANCE- The Secretary shall be entitled to
receive, shall accept, and shall use to carry out this subtitle the funds
transferred under paragraph (1), without further appropriation.
`(b) FISCAL YEARS 2004 THROUGH 2006- There are authorized to be
appropriated such sums as are necessary to carry out this subtitle for each of
fiscal years 2004 through 2006.'.
SEC. 605. ENHANCEMENT OF ACCESS TO BROADBAND SERVICE IN RURAL
AREAS.
The Rural Electrification Act of 1936 (7 U.S.C. 901 et seq.) is
amended by adding at the end the following:
`TITLE VI--RURAL BROADBAND ACCESS
`SEC. 601. ACCESS TO BROADBAND TELECOMMUNICATIONS SERVICES IN RURAL
AREAS.
`(a) PURPOSE- The purpose of this section is to provide grants, loans,
and loan guarantees to provide funds for the costs of the construction,
improvement, and acquisition of facilities and equipment for broadband service
in eligible rural communities.
`(b) DEFINITIONS- In this section:
`(1) BROADBAND SERVICE- The term `broadband service' means any
technology identified by the Secretary as having the capacity to transmit
data to enable a subscriber to the service to originate and receive
high-quality voice, data, graphics, or video.
`(2) ELIGIBLE RURAL COMMUNITY- The term `eligible rural community'
means any incorporated or unincorporated place that--
`(A) has not more than 20,000 inhabitants, based on the most
recent available population statistics of the Bureau of the Census;
and
`(B) is not located in an area designated as a standard
metropolitan statistical area.
`(c) GRANTS- The Secretary shall make grants to eligible entities
described in subsection (e) to provide funds for the construction,
improvement, or acquisition of facilities and equipment for the provision of
broadband service in eligible rural communities.
`(d) LOANS AND LOAN GUARANTEES- The Secretary shall make or guarantee
loans to eligible entities described in subsection (e) to provide funds for
the construction, improvement, or acquisition of facilities and equipment for
the provision of broadband service in eligible rural communities.
`(e) ELIGIBLE ENTITIES- To be eligible to obtain a grant, loan, or
loan guarantee under this section, an entity must--
`(1) be able to furnish, improve, or extend a broadband service to
an eligible rural community; and
`(2) submit to the Secretary a proposal for a project that meets the
requirements of this section.
`(f) BROADBAND SERVICE- The Secretary shall, from time to time as
advances in technology warrant, review and recommend modifications of
rate-of-data transmission criteria for purposes of the identification of
broadband service technologies under subsection (b)(1).
`(g) TECHNOLOGICAL NEUTRALITY- For purposes of determining whether or
not to make a grant, loan, or loan guarantee for a project under this section,
the Secretary shall not take into consideration the type of technology
proposed to be used under the project.
`(h) TERMS AND CONDITIONS FOR LOANS AND LOAN GUARANTEES- A loan or
loan guarantee under subsection (d) shall--
`(1) be made available in accordance with the requirements of the
Federal Credit Reform Act of 1990 (2 U.S.C. 661 et seq.);
`(2) bear interest at an annual rate of, as determined by the
Secretary--
`(A) 4 percent per annum; or
`(B) the current applicable market rate; and
`(3) have a term not to exceed the useful life of the assets
constructed, improved, or acquired with the proceeds of the loan or
extension of credit.
`(i) USE OF LOAN PROCEEDS TO REFINANCE LOANS FOR DEPLOYMENT OF
BROADBAND SERVICE- Notwithstanding any other provision of this Act, the
proceeds of any loan made by the Secretary under this Act may be used by the
recipient of the loan for the purpose of refinancing an outstanding obligation
of the recipient on another telecommunications loan made under this Act if the
use of the proceeds for that purpose will further the construction,
improvement, or acquisition of facilities and equipment for the provision of
broadband service in eligible rural communities.
`(1) IN GENERAL- Not later than 30 days after the date of enactment
of this Act, and on October 1, 2002, and each October 1 thereafter through
October 1, 2005, out of any funds in the Treasury not otherwise
appropriated, the Secretary of the Treasury shall transfer to the Secretary
of Agriculture to carry out this section $100,000,000, to remain available
until expended.
`(2) RECEIPT AND ACCEPTANCE- The Secretary shall be entitled to
receive, shall accept, and shall use to carry out this section the funds
transferred under paragraph (1), without further appropriation.
`(3) ALLOCATION OF FUNDS-
`(A) IN GENERAL- From amounts made available for each fiscal year
under paragraph (1), the Secretary shall--
`(i) establish a national reserve for grants, loans, and loan
guarantees to eligible entities in States under this section;
and
`(ii) allocate amounts in the reserve to each State for each
fiscal year for grants, loans, and loan guarantees to eligible entities
in the State.
`(B) AMOUNT- The amount of an allocation made to a State for a
fiscal year under subparagraph (A) shall bear the same ratio to the amount
of allocations made for all States for the fiscal year as the number of
communities with a population of 2,500 inhabitants or less in the State
bears to the number of communities with a population of 2,500 inhabitants
or less in all States, as determined on the basis of the last available
census.
`(C) UNOBLIGATED AMOUNTS- Any amounts in the reserve established
for a State for a fiscal year under subparagraph (B) that are not
obligated by April 1 of the fiscal year shall be available to the
Secretary to make grants, loans, and loan guarantees under this section to
eligible entities in any State, as determined by the
Secretary.
`(k) GRANTS FOR PLANNING AND FEASIBILITY STUDIES ON BROADBAND
DEPLOYMENT-
`(1) IN GENERAL- In addition to any other grants, loans, or loan
guarantees made under this section, the Secretary shall make grants to
eligible entities specified in paragraph (2) for planning and feasibility
studies carried out by those entities on the deployment of broadband
services in the areas served by those entities.
`(2) ELIGIBLE ENTITIES- The entities eligible for grants under this
subsection are--
`(B) local governments (including consortia of local
governments);
`(D) telecommunications cooperatives; and
`(E) appropriate State and regional nonprofit entities (as
determined by the Secretary).
`(3) ELIGIBILITY CRITERIA-
`(A) IN GENERAL- The Secretary shall establish criteria for
eligibility for grants under this subsection, including criteria for the
scope of the planning and feasibility studies to be carried out with
grants under this subsection.
`(B) CONTRIBUTION BY GRANTEE- An entity may not be awarded a grant
under this subsection unless the entity agrees to contribute (out of funds
other than the grant amount) to the planning and feasibility study to be
funded by the grant an amount equal to the amount of the
grant.
`(4) APPLICATION- An entity seeking a grant under this subsection
shall submit to the Secretary an application for the grant that is in such
form, and that contains such information, as the Secretary shall
require.
`(5) USE OF GRANT AMOUNTS-
`(A) IN GENERAL- Subject to subparagraph (B), an entity that
receives a grant under this subsection shall use the grant amount for
planning and feasibility studies on the deployment of broadband services
in the area of--
`(ii) a local government;
`(iv) a region of a State; or
`(B) LIMITATION- Grant amounts under this subsection may not be
used for the construction of buildings or other facilities, the
acquisition or improvement of existing buildings or facilities, or the
leasing of office space.
`(6) LIMITATION ON GRANT AMOUNTS-
`(A) STATEWIDE GRANTS- The amount of the grants made under this
subsection in or with respect to any State in any fiscal year may not
exceed $250,000.
`(B) LOCAL GOVERNMENT, REGIONAL, OR TRIBAL GRANTS- The amount of
the grants made under this subsection in or with respect to any local
government, region, or tribal government in any fiscal year may not exceed
$100,000.
`(7) RESERVATION OF FUNDS FOR GRANTS-
`(A) IN GENERAL- For each fiscal year, up to 3 percent of the
funds made available to carry out this section for the fiscal year shall
be reserved for grants under this subsection.
`(B) RELEASE- Funds reserved under subparagraph (A) for a fiscal
year shall be reserved only until April 1 of the fiscal
year.
`(8) SUPPLEMENT NOT SUPPLANT-
`(A) IN GENERAL- Eligibility for a grant under this subsection
shall not affect eligibility for a grant, loan, or loan guarantee under
another subsection of this section.
`(B) CONSIDERATIONS- The Secretary shall not take into account the
award of a grant under this subsection, or the award of a grant, loan, or
loan guarantee under another subsection of this section, in awarding a
grant, loan, or loan guarantee under this subsection or another subsection
of this section, as the case may be.
`(l) TERMINATION OF AUTHORITY-
`(1) IN GENERAL- No grant, loan, or loan guarantee may be made under
this section after September 30, 2006.
`(2) EFFECT ON VALIDITY OF GRANT, LOAN, OR LOAN GUARANTEE-
Notwithstanding paragraph (1), any grant, loan, or loan guarantee made under
this section before the date specified in paragraph (1) shall be
valid.'.
SEC. 606. VALUE-ADDED AGRICULTURAL PRODUCT MARKET DEVELOPMENT
GRANTS.
Section 231 of the Agricultural Risk Protection Act of 2000 (7 U.S.C.
1621 note; Public Law 106-224) is amended--
(1) by redesignating subsections (b) through (d) as subsections (c)
through (e), respectively;
(2) by striking subsection (a) and inserting the
following:
`(a) DEFINITION OF VALUE-ADDED AGRICULTURAL PRODUCT- The term
`value-added agricultural product' means any agricultural commodity or product
that--
`(1)(A) has undergone a change in physical state; or
`(B) was produced in a manner that enhances the value of the
agricultural commodity or product, as demonstrated through a business plan
that shows the enhanced value, as determined by the Secretary;
and
`(2) as a result of the change in physical state or the manner in
which the agricultural commodity or product was produced--
`(A) the customer base for the agricultural commodity or product
has been expanded; and
`(B) a greater portion of the revenue derived from the processing
of the agricultural commodity or product is available to the producer of
the commodity or product.
`(1) PURPOSES- The purposes of this subsection are--
`(A) to increase the share of the food and agricultural system
profit received by agricultural producers;
`(B) to increase the number and quality of rural self-employment
opportunities in agriculture and agriculturally-related businesses and the
number and quality of jobs in agriculturally-related
businesses;
`(C) to help maintain a diversity of size in farms and ranches by
stabilizing the number of small and mid-sized farms;
`(D) to increase the diversity of food and other agricultural
products available to consumers, including nontraditional crops and
products and products grown or raised in a manner that enhances the value
of the products to the public; and
`(E) to conserve and enhance the quality of land, water, and
energy resources, wildlife habitat, and other landscape values and
amenities in rural areas.
`(2) GRANTS- From amounts made available under paragraph (6), the
Secretary shall make award competitive grants--
`(A) to an eligible independent producer (as determined by the
Secretary) of a value-added agricultural product to assist the
producer--
`(i) to develop a business plan for viable marketing
opportunities for the value-added agricultural product;
or
`(ii) to develop strategies that are intended to create
marketing opportunities for the producer; and
`(B) to an eligible nonprofit entity (as determined by the
Secretary) to assist the entity--
`(i) to develop a business plan for viable marketing
opportunities in emerging markets for a value-added agricultural
product;
`(ii) to develop strategies that are intended to create
marketing opportunities in emerging markets for the value-added
agricultural product; or
`(iii) to create, expand, or operate value-added processing in
an area described in paragraph (3)(B)(ii) in connection with production
agriculture.
`(A) IN GENERAL- The total amount provided under this subsection
to a grant recipient may not exceed $500,000.
`(B) PRIORITY- The Secretary shall give priority
to--
`(i) grant proposals for less than $200,000 submitted under this
subsection; and
`(ii) grant proposals submitted by an eligible nonprofit entity
with a principal office that is located--
`(I) on land of an existing or former Native American
reservation; and
`(II) in a city, town, or unincorporated area that has a
population of no more than 5,000 inhabitants.
`(4) GRANTEE STRATEGIES- A grantee under paragraph (2) shall use the
grant--
`(A) to develop a business plan or perform a feasibility study to
establish a viable marketing opportunity for a value-added agricultural
product; or
`(B) to provide capital to establish alliances or business
ventures that allow the producer of the value-added agricultural product
to better compete in domestic or international markets.
`(5) GRANTS FOR MARKETING OR PROCESSING CERTIFIED ORGANIC
AGRICULTURAL PRODUCTS-
`(A) IN GENERAL- Out of any amount that is made available to the
Secretary for a fiscal year under paragraph (2), the Secretary shall use
not less than 5 percent of the amount for grants to assist producers of
certified organic agricultural products in post-farm marketing or
processing of the products through a business or cooperative ventures
that--
`(i) expand the customer base of the certified organic
agricultural products; and
`(ii) increase the portion of product revenue available to the
producers.
`(B) CERTIFIED ORGANIC AGRICULTURAL PRODUCT- For the purposes of
this paragraph, a certified organic agricultural product does not have to
meet the requirements of the definition of `value-added agricultural
product' under subsection (a).
`(C) INSUFFICIENT APPLICATIONS- If, for any fiscal year, the
Secretary receives an insufficient quantity of applications for grants
described in subparagraph (A) to use the funds reserved under subparagraph
(A), the Secretary may use the excess reserved funds to make grants for
any other purpose authorized under this subsection.
`(A) IN GENERAL- Not later than 30 days after the date of
enactment of this paragraph, and on October 1, 2002, and each October 1
thereafter through October 1, 2005, out of any funds in the Treasury not
otherwise appropriated, the Secretary of the Treasury shall transfer to
the Secretary of Agriculture to carry out this subsection $75,000,000, to
remain available until expended.
`(B) RECEIPT AND ACCEPTANCE- The Secretary shall be entitled to
receive, shall accept, and shall use to carry out this subsection the
funds transferred under subparagraph (A), without further
appropriation.';
(3) in subsection (c)(1) (as redesignated)--
(A) by striking `subsection (a)(2)' and inserting `subsection
(b)(2)';
(B) by striking `$5,000,000' and inserting `7.5 percent';
and
(C) by striking `subsection (a)' and inserting `subsection (b)';
and
(4) in subsection (d) (as redesignated), by striking `subsections
(a) and (b)' and inserting `subsections (b) and (c)'.
SEC. 607. NATIONAL RURAL DEVELOPMENT INFORMATION
CLEARINGHOUSE.
Section 2381 of the Food, Agriculture, Conservation, and Trade Act of
1990 (7 U.S.C. 3125b) is amended to read as follows:
`SEC. 2381. NATIONAL RURAL DEVELOPMENT INFORMATION
CLEARINGHOUSE.
`(a) ESTABLISHMENT- The Secretary shall establish and maintain, within
the rural development mission area of the Department of Agriculture, a
National Rural Development Information Clearinghouse (referred to in this
section as the `Clearinghouse') to perform the functions specified in
subsection (b).
`(b) FUNCTIONS- The Clearinghouse shall collect information and data
from, and disseminate information and data to, any person or public or private
entity about programs and services provided by Federal, State, local, and
tribal agencies, institutions of higher education, and private, for-profit,
and nonprofit organizations and institutions under which a person or public or
private entity residing or operating in a rural area may be eligible for any
kind of financial, technical, or other assistance, including business, venture
capital, economic, credit and community development assistance, health care,
job training, education, and emotional and financial counseling.
`(c) MODES OF COLLECTION AND DISSEMINATION OF INFORMATION- In addition
to other modes for the collection and dissemination of the types of
information and data specified under subsection (b), the Secretary shall
ensure that the Clearinghouse maintains an Internet website that provides for
dissemination and collection, through voluntary submission or posting, of the
information and data.
`(d) FEDERAL AGENCIES- On request of the Secretary and to the extent
permitted by law, the head of a Federal agency shall provide to the
Clearinghouse such information as the Secretary may request to enable the
Clearinghouse to carry out this section.
`(e) STATE, LOCAL, AND TRIBAL AGENCIES, INSTITUTIONS OF HIGHER
EDUCATION, AND NONPROFIT AND FOR-PROFIT ORGANIZATIONS- The Secretary shall
request State, local, and tribal agencies, institutions of higher education,
and private, for-profit, and nonprofit organizations and institutions to
provide to the Clearinghouse information concerning applicable programs or
services described in subsection (b).
`(f) PROMOTION OF CLEARINGHOUSE- The Secretary prominently shall
promote the existence and availability of the Clearinghouse in all activities
of the Department of Agriculture relating to rural areas of the United
States.
`(1) IN GENERAL- Subject to paragraph (2), the Secretary shall use
to operate and maintain the Clearinghouse not more than $600,000 of the
funds available to the Rural Housing Service, the Rural Utilities Service,
and the Rural Business-Cooperative Service for each fiscal year.
`(2) LIMITATION- Funds available to the Rural Housing Service, the
Rural Utilities Service, and the Rural Business-Cooperative Service for the
payment of loan costs (as defined in section 502 of Federal Credit Reform
Act of 1990 (2 U.S.C. 661a)) shall not be used to operate and maintain the
Clearinghouse.'.
Subtitle B--National Rural Development
Partnership
SEC. 611. SHORT TITLE.
This subtitle may be cited as the `National Rural Development
Partnership Act of 2002'.
SEC. 612. NATIONAL RURAL DEVELOPMENT PARTNERSHIP.
Subtitle D of the Consolidated Farm and Rural Development Act (7
U.S.C. 1981 et seq.) is amended by adding at the end the following:
`SEC. 377. NATIONAL RURAL DEVELOPMENT PARTNERSHIP.
`(a) DEFINITIONS- In this section:
`(1) AGENCY WITH RURAL RESPONSIBILITIES- The term `agency with rural
responsibilities' means any executive agency (as defined in section 105 of
title 5, United States Code) that--
`(A) implements Federal law targeted at rural areas,
including--
`(i) the Act of April 24, 1950 (commonly known as the
`Granger-Thye Act') (64 Stat. 82, chapter 9);
`(ii) the Intergovernmental Cooperation Act of 1968 (82 Stat.
1098);
`(iii) section 41742 of title 49, United States
Code;
`(iv) the Rural Development Act of 1972 (86 Stat.
657);
`(v) the Rural Development Policy Act of 1980 (94 Stat.
1171);
`(vi) the Rural Electrification Act of 1936 (7 U.S.C. 901 et
seq.);
`(vii) amendments made to section 334 of the Public Health
Service Act (42 U.S.C. 254g) by the Rural Health Clinics Act of 1983 (97
Stat. 1345); and
`(viii) the Rural Housing Amendments of 1983 (97 Stat. 1240) and
the amendments made by the Rural Housing Amendments of 1983 to title V
of the Housing Act of 1949 (42 U.S.C. 1471 et seq.); or
`(B) administers a program that has a significant impact on rural
areas, including--
`(i) the Appalachian Regional Commission;
`(ii) the Department of Agriculture;
`(iii) the Department of Commerce;
`(iv) the Department of Defense;
`(v) the Department of Education;
`(vi) the Department of Energy;
`(vii) the Department of Health and Human
Services;
`(viii) the Department of Housing and Urban
Development;
`(ix) the Department of the Interior;
`(x) the Department of Justice;
`(xi) the Department of Labor;
`(xii) the Department of Transportation;
`(xiii) the Department of the Treasury;
`(xiv) the Department of Veterans Affairs;
`(xv) the Environmental Protection Agency;
`(xvi) the Federal Emergency Management
Administration;
`(xvii) the Small Business Administration;
`(xviii) the Social Security Administration;
`(xix) the Federal Reserve System;
`(xx) the United States Postal Service;
`(xxi) the Corporation for National Service;
`(xxii) the National Endowment for the Arts and the National
Endowment for the Humanities; and
`(xxiii) other agencies, commissions, and
corporations.
`(2) COORDINATING COMMITTEE- The term `Coordinating Committee' means
the National Rural Development Coordinating Committee established by
subsection (c).
`(3) PARTNERSHIP- The term `Partnership' means the National Rural
Development Partnership continued by subsection (b).
`(4) STATE RURAL DEVELOPMENT COUNCIL- The term `State rural
development council' means a State rural development council that meets the
requirements of subsection (d).
`(1) IN GENERAL- The Secretary shall continue the National Rural
Development Partnership composed of--
`(A) the Coordinating Committee; and
`(B) State rural development councils.
`(2) PURPOSES- The purposes of the Partnership are--
`(A) to empower and build the capacity of States and rural
communities within States to design unique responses to their own special
rural development needs, with local determinations of progress and
selection of projects and activities;
`(B) to encourage participants to be flexible and innovative in
establishing new partnerships and trying fresh, new approaches to rural
development issues, with responses to rural development that use different
approaches to fit different situations; and
`(C) to encourage all partners in the Partnership (Federal, State,
local, and tribal governments, the private sector, and nonprofit
organizations) to be fully engaged and share equally in
decisions.
`(A) IN GENERAL- A panel consisting of representatives of the
Coordinating Committee and State rural development councils shall be
established to lead and coordinate the strategic operation, policies, and
practices of the Partnership.
`(B) ANNUAL REPORTS- In conjunction with the Coordinating
Committee and State rural development councils, the panel shall prepare
and submit to Congress an annual report on the activities of the
Partnership.
`(4) ROLE OF FEDERAL GOVERNMENT- The role of the Federal Government
in the Partnership shall be that of a partner and facilitator, with Federal
agencies authorized--
`(A) to cooperate with States to implement the
Partnership;
`(B) to provide States with the technical and administrative
support necessary to plan and implement tailored rural development
strategies to meet local needs;
`(C) to ensure that the head of each agency referred to in
subsection (a)(1)(B) designates a senior-level agency official to
represent the agency on the Coordinating Committee and directs appropriate
field staff to participate fully with the State rural development council
within the jurisdiction of the field staff; and
`(D) to enter into cooperative agreements with, and to provide
grants and other assistance to, State rural development
councils.
`(5) ROLE OF PRIVATE AND NONPROFIT SECTOR ORGANIZATIONS- Private and
nonprofit sector organizations are encouraged--
`(A) to act as full partners in the Partnership and State rural
development councils; and
`(B) to cooperate with participating government organizations in
developing innovative approaches to the solution of rural development
problems.
`(c) NATIONAL RURAL DEVELOPMENT COORDINATING COMMITTEE-
`(1) ESTABLISHMENT- The Secretary shall establish a National Rural
Development Coordinating Committee.
`(2) COMPOSITION- The Coordinating Committee shall be composed
of--
`(A) 1 representative of each agency with rural responsibilities
that elects to participate in the Coordinating Committee;
and
`(B) representatives, approved by the Secretary,
of--
`(i) national associations of State, regional, local, and tribal
governments and intergovernmental and multijurisdictional agencies and
organizations;
`(ii) national public interest groups;
`(iii) other national nonprofit organizations that elect to
participate in the activities of the Coordinating Committee;
and
`(iv) the private sector.
`(3) DUTIES- The Coordinating Committee shall--
`(A) provide support for the work of the State rural development
councils;
`(B) facilitate coordination among Federal programs and
activities, and with State, local, tribal, and private programs and
activities, affecting rural development;
`(C) enhance the effectiveness, responsiveness, and delivery of
Federal programs in rural areas;
`(D) gather and provide to Federal authorities information and
input for the development and implementation of Federal programs impacting
rural economic and community development;
`(E) notwithstanding any other provision of law, review and
comment on policies, regulations, and proposed legislation that affect or
would affect rural areas;
`(F) provide technical assistance to State rural development
councils for the implementation of Federal programs;
`(G) notwithstanding any other provision of law, develop and
facilitate strategies to reduce or eliminate administrative and regulatory
impediments; and
`(H) require each State receiving funds under this section to
submit an annual report on the use of the funds by the State, including a
description of strategic plans, goals, performance measures, and outcomes
for the State rural development council of the State.
`(4) ELECTION NOT TO PARTICIPATE- An agency with rural
responsibilities that elects not to participate in the Partnership and the
Coordinating Committee shall submit to Congress a report that
describes--
`(A) how the programmatic responsibilities of the Federal agency
that target or have an impact on rural areas are better achieved without
participation by the agency in the Partnership; and
`(B) a more effective means of partnership-building and
collaboration to achieve the programmatic responsibilities of the
agency.
`(d) STATE RURAL DEVELOPMENT COUNCILS-
`(1) ESTABLISHMENT- Notwithstanding chapter 63 of title 31, United
States Code, each State may elect to participate in the Partnership by
entering into an agreement with the Secretary to establish a State rural
development council.
`(2) STATE DIVERSITY- Each State rural development council
shall--
`(A) have a nonpartisan membership that is broad and
representative of the economic, social, and political diversity of the
State; and
`(B) carry out programs and activities in a manner that reflects
the diversity of the State.
`(3) DUTIES- A State rural development council shall--
`(A) facilitate collaboration among Federal, State, local, and
tribal governments and the private and nonprofit sectors in the planning
and implementation of programs and policies that target or have an impact
on rural areas of the State;
`(B) enhance the effectiveness, responsiveness, and delivery of
Federal and State programs in rural areas of the State;
`(C) gather and provide to the Coordinating Committee and other
appropriate organizations information on the condition of rural areas in
the State;
`(D) monitor and report on policies and programs that address, or
fail to address, the needs of the rural areas of the State;
`(E) provide comments to the Coordinating Committee and other
appropriate organizations on policies, regulations, and proposed
legislation that affect or would affect the rural areas of the
State;
`(F) notwithstanding any other provision of law, in conjunction
with the Coordinating Committee, facilitate the development of strategies
to reduce or eliminate conflicting or duplicative administrative or
regulatory requirements of Federal, State, local, and tribal
governments;
`(G) use grant or cooperative agreement funds provided by the
Partnership under an agreement entered into under paragraph (1)
to--
`(i) retain an Executive Director and such support staff as are
necessary to facilitate and implement the directives of the State rural
development council; and
`(ii) pay expenses associated with carrying out subparagraphs
(A) through (F); and
`(H)(i) provide to the Coordinating Committee an annual plan with
goals and performance measures; and
`(ii) submit to the Coordinating Committee an annual report on the
progress of the State rural development council in meeting the goals and
measures.
`(4) AUTHORITIES- A State rural development council may--
`(A) solicit funds to supplement and match funds provided under
paragraph (3)(G); and
`(B) engage in activities, in addition to those specified in
paragraph (3), appropriate to accomplish the purposes for which the State
rural development council is established.
`(5) COMMENTS OR RECOMMENDATIONS- A State rural development council
may provide comments and recommendations to an agency with rural
responsibilities related to the activities of the State rural development
council within the State.
`(6) ACTIONS OF STATE RURAL DEVELOPMENT COUNCIL MEMBERS- When
carrying out a program or activity authorized by a State rural development
council or this subtitle, a member of the council shall be regarded as a
full-time employee of the Federal Government for purposes of chapter 171 of
title 28, United States Code, and the Federal Advisory Committee Act (5
U.S.C. App.).
`(7) FEDERAL PARTICIPATION IN STATE RURAL DEVELOPMENT COUNCILS-
`(A) IN GENERAL- The State Director for Rural Development of a
State, other employees of the Department of Agriculture, and employees of
other Federal agencies that elect to participate in the Partnership shall
fully participate in the governance and operations of State rural
development councils on an equal basis with other members of the State
rural development councils.
`(B) CONFLICTS- A Federal employee who participates in a State
rural development council shall not participate in the making of any
council decision if the agency represented by the Federal employee has any
financial or other interest in the outcome of the decision.
`(C) FEDERAL GUIDANCE- The Office of Government Ethics, in
consultation with the Attorney General, shall issue guidance to all
Federal employees that participate in State rural development councils
that describes specific decisions that--
`(i) would constitute a conflict of interest for the Federal
employee; and
`(ii) from which the Federal employee must recuse himself or
herself.
`(e) ADMINISTRATIVE SUPPORT OF THE PARTNERSHIP-
`(1) DETAIL OF EMPLOYEES-
`(A) IN GENERAL- In order to provide experience in
intergovernmental collaboration, the head of an agency with rural
responsibilities that elects to participate in the Partnership may, and is
encouraged to, detail an employee of the agency with rural
responsibilities to the Partnership without reimbursement for a period of
up to 12 months.
`(B) CIVIL SERVICE STATUS- The detail shall be without
interruption or loss of civil service status or privilege.
`(2) ADDITIONAL SUPPORT- The Secretary shall provide for any
additional support staff to the Partnership as the Secretary determines to
be necessary to carry out the duties of the Partnership.
`(1) AUTHORIZATION OF APPROPRIATIONS-
`(A) IN GENERAL- There are authorized to be appropriated such sums
as are necessary to carry out this section.
`(B) AMOUNT OF FINANCIAL ASSISTANCE- In providing financial
assistance to State rural development councils, the Secretary and heads of
other Federal agencies shall provide assistance that, to the maximum
extent practicable, is--
`(i) uniform in amount; and
`(ii) targeted to newly created State rural development
councils.
`(C) FEDERAL SHARE- The Secretary shall develop a plan to
decrease, over time, the Federal share of the cost of the core operations
of State rural development councils.
`(A) IN GENERAL- Notwithstanding any other provision of law
limiting the ability of an agency to provide funds to the Partnership with
other agencies, in order to carry out the purposes described in subsection
(b)(2), the Partnership shall be eligible to receive grants, gifts,
contributions, or technical assistance from, or enter into contracts with,
any Federal agency.
`(B) ASSISTANCE- Federal agencies are encouraged to use funds made
available for programs that target or have an impact on rural areas to
provide assistance to, and enter into contracts with, the Partnership, as
described in subparagraph (A).
`(3) CONTRIBUTIONS- The Partnership may accept private
contributions.
`(4) FEDERAL FINANCIAL SUPPORT FOR STATE RURAL DEVELOPMENT COUNCILS-
Notwithstanding any other provision of law, a Federal agency may use funds
made available under paragraph (1) or (2) to enter into a cooperative
agreement, contract, or other agreement with a State rural development
council to support the core operations of the State rural development
council, regardless of the legal form of organization of the State rural
development council.
`(g) MATCHING REQUIREMENTS FOR STATE RURAL DEVELOPMENT COUNCILS-
`(1) IN GENERAL- Except as provided in paragraph (2), a State rural
development council shall provide matching funds, or in-kind goods or
services, to support the activities of the State rural development council
in an amount that is not less than 33 percent of the amount of Federal funds
received under an agreement under subsection (d)(1).
`(2) EXCEPTIONS TO MATCHING REQUIREMENT FOR CERTAIN FEDERAL FUNDS-
Paragraph (1) shall not apply to funds, grants, funds provided under
contracts or cooperative agreements, gifts, contributions, or technical
assistance received by a State rural development council from a Federal
agency that are used--
`(A) to support 1 or more specific program or project activities;
or
`(B) to reimburse the State rural development council for services
provided to the Federal agency providing the funds, grants, funds provided
under contracts or cooperative agreements, gifts, contributions, or
technical assistance.
`(h) TERMINATION- The authority provided under this section shall
terminate on the date that is 5 years after the date of enactment of this
section.'.
Subtitle C--Consolidated Farm and Rural Development
Act
SEC. 621. WATER OR WASTE DISPOSAL GRANTS.
Section 306(a)(2) of the Consolidated Farm and Rural Development Act
(7 U.S.C. 1926(a)(2)) is amended--
(1) by striking `(2) The' and inserting the following:
`(2) WATER, WASTE DISPOSAL, AND WASTEWATER FACILITY GRANTS-
(2) by striking `$590,000,000' and inserting
`$1,500,000,000';
(3) by striking `The amount' and inserting the following:
`(ii) AMOUNT- The amount';
(4) by striking `paragraph' and inserting
`subparagraph';
(5) by striking `The Secretary shall' and inserting the
following:
`(iii) GRANT RATE- The Secretary shall'; and
(6) by adding at the end the following:
`(B) REVOLVING FUNDS FOR FINANCING WATER AND WASTEWATER PROJECTS-
`(i) IN GENERAL- The Secretary may make grants to qualified
private, nonprofit entities to capitalize revolving funds for the
purpose of providing financing to eligible entities
for--
`(I) predevelopment costs associated with proposed water and
wastewater projects or with existing water and wastewater systems;
and
`(II) short-term costs incurred for replacement equipment,
small-scale extension services, or other small capital projects that
are not part of the regular operations and maintenance activities of
existing water and wastewater systems.
`(ii) ELIGIBLE ENTITIES- To be eligible to obtain financing from
a revolving fund under clause (i), an eligible entity shall be eligible
to obtain a loan, loan guarantee, or grant under paragraph (1) or this
paragraph.
`(iii) MAXIMUM AMOUNT OF FINANCING- The amount of financing made
to an eligible entity under this subparagraph shall not
exceed--
`(I) $100,000 for costs described in clause (i)(I);
and
`(II) $100,000 for costs described in clause
(i)(II).
`(iv) TERM- The term of financing provided to an eligible entity
under this subparagraph shall not exceed 10 years.
`(v) ADMINISTRATION- The Secretary shall limit the amount of
grant funds that may be used by a grant recipient for administrative
costs incurred under this subparagraph.
`(vi) ANNUAL REPORT- A nonprofit entity receiving a grant under
this subparagraph shall submit an annual report to the Secretary that
describes the number and size of communities served and the type of
financing provided.
`(vii) AUTHORIZATION OF APPROPRIATIONS- There is authorized to
be appropriated to carry out this subparagraph $30,000,000 for each of
fiscal years 2002 through 2006.'.
SEC. 622. RURAL BUSINESS OPPORTUNITY GRANTS.
Section 306(a)(11)(D) of the Consolidated Farm and Rural Development
Act (7 U.S.C. 1926(a)(11)(D)) is amended--
(1) by striking `$7,500,000' and inserting `$15,000,000';
and
(2) by striking `2002' and inserting `2006'.
SEC. 623. RURAL WATER AND WASTEWATER CIRCUIT RIDER PROGRAM.
Section 306(a) of the Consolidated Farm and Rural Development Act (7
U.S.C. 1926(a)) is amended by added at the end the following:
`(22) RURAL WATER AND WASTEWATER CIRCUIT RIDER PROGRAM-
`(A) IN GENERAL- The Secretary shall establish a national rural
water and wastewater circuit rider program that is based on the rural
water circuit rider program of the National Rural Water Association that
(as of the date of enactment of this paragraph) receives funding from the
Secretary, acting through the Rural Utilities Service.
`(B) RELATIONSHIP TO EXISTING PROGRAM- The program established
under subparagraph (A) shall not affect the authority of the Secretary to
carry out the circuit rider program for which funds are made available
under the heading `RURAL COMMUNITY ADVANCEMENT PROGRAM' of title III of
the Agriculture, Rural Development, Food and Drug Administration, and
Related Agencies Appropriations Act, 2002.
`(C) AUTHORIZATION OF APPROPRIATIONS- There is authorized to be
appropriated to carry out this paragraph $15,000,000 for each of fiscal
years 2003 through 2006.'.
SEC. 624. MULTIJURISDICTIONAL REGIONAL PLANNING ORGANIZATIONS.
Section 306(a) of the Consolidated Farm and Rural Development Act (7
U.S.C. 1926(a)) (as amended by section 623) is amended by added at the end the
following:
`(23) MULTIJURISDICTIONAL REGIONAL PLANNING ORGANIZATIONS-
`(A) GRANTS- The Secretary shall provide grants to
multijurisdictional regional planning and development organizations to pay
the Federal share of the cost of providing assistance to local governments
to improve the infrastructure, services, and business development
capabilities of local governments and local economic development
organizations.
`(B) PRIORITY- In determining which organizations will receive a
grant under this paragraph, the Secretary shall provide a priority to an
organization that--
`(i) serves a rural area that, during the most recent 5-year
period--
`(I) had a net out-migration of inhabitants, or other
population loss, from the rural area that equals or exceeds 5 percent
of the population of the rural area; or
`(II) had a median household income that is less than the
nonmetropolitan median household income of the applicable State;
and
`(ii) has a history of providing substantive assistance to local
governments and economic development organizations.
`(C) FEDERAL SHARE- A grant provided under this paragraph shall be
for not more than 75 percent of the cost of providing assistance described
in subparagraph (A).
`(D) MAXIMUM AMOUNT OF GRANTS- The amount of a grant provided to
an organization under this paragraph shall not exceed
$100,000.
`(E) AUTHORIZATION OF APPROPRIATIONS- There is authorized to be
appropriated to carry out this paragraph $30,000,000 for each of fiscal
years 2003 through 2006.'.
SEC. 625. CERTIFIED NONPROFIT ORGANIZATIONS SHARING EXPERTISE.
Section 306(a) of the Consolidated Farm and Rural Development Act (7
U.S.C. 1926(a)) (as amended by section 624) is amended by added at the end the
following:
`(24) CERTIFIED NONPROFIT ORGANIZATIONS SHARING EXPERTISE-
`(A) CERTIFIED ORGANIZATIONS-
`(i) IN GENERAL- To be certified by the Secretary to provide
technical assistance in 1 or more rural development fields, an
organization shall--
`(I) be a nonprofit organization (which may include an
institution of higher education) with experience in providing
technical assistance in the applicable rural development
field;
`(II) develop a plan, approved by the Secretary, describing
the manner in which grant funds will be used and the source of
non-Federal funds; and
`(III) meet such other criteria as the Secretary may
establish, based on the needs of eligible entities for the technical
assistance.
`(iii) LIST- The Secretary shall make available to the public a
list of certified organizations in each area that the Secretary
determines have substantial experience in providing the assistance
described in subparagraph (B).
`(B) GRANTS- The Secretary may provide grants to certified
organizations to pay for costs of providing technical assistance to local
governments and nonprofit entities to improve the infrastructure,
services, and business development capabilities of local governments and
local economic development organizations.
`(C) AUTHORIZATION OF APPROPRIATIONS- There is authorized to be
appropriated to carry out this paragraph $20,000,000 for each of fiscal
years 2003 through 2006.'.
SEC. 626. LOAN GUARANTEES FOR CERTAIN RURAL DEVELOPMENT LOANS.
(a) LOAN GUARANTEES FOR WATER, WASTEWATER, AND ESSENTIAL COMMUNITY
FACILITIES LOANS- Section 306(a) of the Consolidated Farm and Rural
Development Act (7 U.S.C. 1925(a)) (as amended by section 625) is amended by
adding at the end the following:
`(25) LOAN GUARANTEES FOR WATER, WASTEWATER, AND ESSENTIAL COMMUNITY
FACILITIES LOANS-
`(A) IN GENERAL- The Secretary may guarantee under this title a
loan made to finance a community facility or water or waste facility
project, including a loan financed by the net proceeds of a bond described
in section 144(a)(12)(B)(ii) of the Internal Revenue Code of
1986.
`(B) REQUIREMENTS- To be eligible for a loan guarantee under
subparagraph (A), an individual or entity offering to purchase the loan
must demonstrate to the Secretary that the person has--
`(i) the capabilities and resources necessary to service the
loan in a manner that ensures the continued performance of the loan, as
determined by the Secretary; and
`(ii) the ability to generate capital to provide borrowers of
the loan with the additional credit necessary to properly service the
loan.'.
(b) LOAN GUARANTEES FOR CERTAIN LOANS- Section 310B of the
Consolidated Farm and Rural Development Act (7 U.S.C. 1932) is amended by
adding at the end the following:
`(h) LOAN GUARANTEE FOR CERTAIN LOANS- The Secretary may guarantee
loans made in subsection (a) to finance the issuance of bonds for the projects
described in section 306(a)(25).'.
SEC. 627. RURAL FIREFIGHTERS AND EMERGENCY PERSONNEL GRANT
PROGRAM.
Section 306(a) of the Consolidated Farm and Rural Development Act (7
U.S.C. 1926(a)) (as amended by section 626(a)) is amended by adding at the end
the following:
`(26) RURAL FIREFIGHTERS AND EMERGENCY MEDICAL PERSONNEL GRANT
PROGRAM-
`(A) IN GENERAL- The Secretary may make grants to units of general
local government and Indian tribes (as defined in section 4 of the Indian
Self-Determination and Education Assistance Act (25 U.S.C. 450b)) to pay
the cost of training firefighters and emergency medical personnel in
firefighting, emergency medical practices, and responding to hazardous
materials and bioagents in rural areas.
`(I) IN GENERAL- Not less than 60 percent of the amounts made
available for competitively awarded grants under this paragraph shall
be used to provide grants to fund partial scholarships for training of
individuals at training centers approved by the
Secretary.
`(II) PRIORITY- In awarding grants under this clause, the
Secretary shall give priority to grant applicants with relatively low
transportation costs considering the location of the grant applicant
and the proposed location of the training.
`(ii) GRANTS FOR TRAINING CENTERS-
`(aa) IN GENERAL- A grant under subparagraph (A) may be used to
provide financial assistance to State and regional centers that provide training
for firefighters and emergency medical personnel for improvements to the
training facility, equipment, curricula, and personnel.
`(bb) LIMITATION- Not more than $2,000,000 shall be provided to
any single training center for any fiscal year under this
subclause.
`(II) ESTABLISHMENT OF NEW CENTERS-
`(aa) IN GENERAL- A grant under subparagraph (A) may be used to
provide the Federal share of the costs of establishing a regional training
center for firefighters and emergency medical personnel.
`(bb) FEDERAL SHARE- The amount of a grant under this subclause
for a training center shall not exceed 50 percent of the cost of establishing
the training center.
`(i) IN GENERAL- Out of any funds in the Treasury not otherwise
appropriated, the Secretary of the Treasury shall transfer to the
Secretary of Agriculture to carry out this paragraph--
`(I) not later than 30 days after the date of enactment of
this Act, $10,000,000; and
`(II) on October 1, 2002, and each October 1 thereafter
through October 1, 2005, $30,000,000.
`(ii) RECEIPT AND ACCEPTANCE- The Secretary shall be entitled to
receive, shall accept, and shall use to carry out this section the funds
transferred under clause (i), without further
appropriation.
`(iii) AVAILABILITY OF FUNDS- Funds transferred under clause (i)
shall remain available until expended.'.
SEC. 628. TRIBAL COLLEGE AND UNIVERSITY ESSENTIAL COMMUNITY
FACILITIES.
Section 306(a) of the Consolidated Farm and Rural Development Act (7
U.S.C. 1926(a)) (as amended by section 627) is amended by adding at the end
the following:
`(27) TRIBAL COLLEGE AND UNIVERSITY ESSENTIAL COMMUNITY FACILITIES-
`(A) IN GENERAL- The Secretary may make grants to tribal colleges
and universities (as defined in section 316 of the Higher Education Act of
1965 (20 U.S.C. 1059c)) to provide the Federal share of the cost of
developing specific tribal college or university essential community
facilities in rural areas.
`(i) IN GENERAL- Except as provided in clauses (ii) and (iii),
the Secretary shall, by regulation, establish the maximum percentage of
the cost of the facility that may be covered by a grant under this
paragraph.
`(ii) MAXIMUM AMOUNT- The amount of a grant provided under this
paragraph for a facility shall not exceed 75 percent of the cost of
developing the facility.
`(iii) GRADUATED SCALE- The Secretary shall provide for a
graduated scale of the percentages of the cost covered by a grant made
under this paragraph, with higher percentages for facilities in
communities that have lower community population and income levels, as
determined by the Secretary.
`(C) AUTHORIZATION OF APPROPRIATIONS- There is authorized to be
appropriated to carry out this paragraph $10,000,000 for each of fiscal
years 2003 through 2006.'.
SEC. 629. EMERGENCY COMMUNITY WATER ASSISTANCE GRANT PROGRAM.
Section 306A(i) of the Consolidated Farm and Rural Development Act (7
U.S.C. 1926a(i)) is amended by striking `2002' and inserting `2006'.
SEC. 630. WATER AND WASTE FACILITY GRANTS FOR NATIVE AMERICAN
TRIBES.
Section 306C of the Consolidated Farm and Rural Development Act (7
U.S.C. 1926c(e)) is amended by striking subsection (e) and inserting the
following:
`(e) AUTHORIZATION OF APPROPRIATIONS-
`(1) IN GENERAL- Subject to paragraph (2), there is authorized to be
appropriated--
`(A) for grants under this section, $30,000,000 for each fiscal
year;
`(B) for loans under this section, $30,000,000 for each fiscal
year; and
`(C) for grants under this section to benefit Indian tribes (as
defined in section 4 of the Indian Self-Determination and Education
Assistance Act (25 U.S.C. 450b)), $20,000,000 for each fiscal
year.
`(2) EXCEPTION- An entity eligible to receive funding through a
grant made under section 306D shall not be eligible for a grant from funds
made available under subparagraph (1)(C).'.
SEC. 631. WATER SYSTEMS FOR RURAL AND NATIVE VILLAGES IN
ALASKA.
Section 306D(d)(1) of the Consolidated Farm and Rural Development Act
(7 U.S.C. 1926d(d)(1)) is amended by striking `and 2002' and inserting
`through 2006'.
SEC. 632. RURAL BUSINESS ENTERPRISE GRANTS.
Section 310B(c)(1) of the Consolidated Farm and Rural Development Act
(7 U.S.C. 1932(c)(1)) is amended--
(1) by striking `The Secretary' and inserting the
following:
`(A) GRANTS- The Secretary'; and
(2) by adding at the end the following:
`(B) SMALL AND EMERGING PRIVATE BUSINESS ENTERPRISES-
`(i) IN GENERAL- For the purpose of subparagraph (A), a small
and emerging private business enterprise shall include (regardless of
the number of employees or operating capital of the enterprise) an
eligible nonprofit entity, or other tax exempt organization, with a
principal office in an area that is located--
`(I) on land of an existing or former Native American
reservation; and
`(II) in a city, town, or unincorporated area that has a
population of no more than 5,000 inhabitants.
`(ii) USE OF GRANT- An eligible nonprofit entity, or other tax
exempt organization, described in clause (i) may use assistance provided
under this paragraph to create, expand, or operate value-added
processing in an area described in clause (i) in connection with
production agriculture.
`(iii) PRIORITY- In making grants under this paragraph, the
Secretary shall give priority to grants that will be used to provide
assistance to eligible nonprofit entities and other tax exempt
organizations described in clause (i).'.
SEC. 633. RURAL COOPERATIVE DEVELOPMENT GRANTS.
Section 310B(e) of the Consolidated Farm and Rural Development Act (7
U.S.C. 1932(e)) is amended--
(1) in paragraph (5)(F), before the period at the end the following:
`, except that the Secretary shall not require non-Federal financial support
in an amount that is greater than 5 percent in the case of a 1994
institution (as defined in section 532 of the Equity in Educational
Land-Grant Status Act of 1994 (7 U.S.C. 301 note; Public Law 103-382))';
and
(2) in paragraph (9), by striking `2002' and inserting
`2006'.
SEC. 634. GRANTS TO BROADCASTING SYSTEMS.
Section 310B(f) of the Consolidated Farm and Rural Development Act (7
U.S.C. 1932(f)) is amended by adding at the end the following:
`(3) AUTHORIZATION OF APPROPRIATIONS- There is authorized to be
appropriated to carry out this subsection $5,000,000 for each of fiscal
years 2002 through 2006.'.
SEC. 635. BUSINESS AND INDUSTRY LOAN MODIFICATIONS.
Section 3l0B of the Consolidated Farm and Rural Development Act (7
U.S.C. 1932) is amended by striking subsection (g) and inserting the
following:
`(g) BUSINESS AND INDUSTRY DIRECT AND GUARANTEED LOANS-
`(1) LOAN GUARANTEES FOR THE PURCHASE OF COOPERATIVE STOCK-
`(A) NEW AND EXPANDING COOPERATIVES-
`(i) IN GENERAL- The Secretary may guarantee a loan under
subsection (a) to farmers, ranchers, or cooperatives for the purpose of
purchasing start-up capital stock for the expansion or creation of a
cooperative venture that will process agricultural commodities or
otherwise process value-added agricultural products.
`(ii) FINANCIAL CONDITION- In determining the appropriateness of
a loan guarantee under this subparagraph, the
Secretary--
`(I) shall fully review the feasibility and other relevant
aspects of the cooperative venture to be
established;
`(II) may not require a review of the financial condition or
statements of any individual farmer or rancher involved in the
cooperative, other than the applicant for a guarantee under this
subparagraph; and
`(III) shall base any guarantee, to the maximum extent
practicable, on the merits of the cooperative venture to be
established.
`(iii) COLLATERAL- As a condition of making a loan guarantee
under this subparagraph, the Secretary may not require additional
collateral by a farmer or rancher, other than stock purchased or issued
pursuant to the loan and guarantee of the loan.
`(iv) ELIGIBILITY- To be eligible for a loan guarantee under
this subparagraph, a farmer or rancher must produce the agricultural
commodity that will be processed by the cooperative.
`(v) PROCESSING CONTRACTS DURING INITIAL PERIOD- The
cooperative, for which a farmer or rancher receives a guarantee to
purchase stock under this subparagraph, may contract for services to
process agricultural commodities, or otherwise process value-added
agricultural products, during the 5-year period beginning on the date of
the startup of the cooperative in order to provide adequate time for the
planning and construction of the processing facility of the
cooperative.
`(B) EXISTING COOPERATIVES- The Secretary may guarantee a loan
under subsection (a) to a farmer or rancher to join a cooperative in order
to sell the agricultural commodities or products produced by the farmer or
rancher.
`(C) FINANCIAL INFORMATION- Financial information required by the
Secretary from a farmer or rancher as a condition of making a loan
guarantee under this paragraph shall be provided in the manner generally
required by commercial agricultural lenders in the area.
`(2) LOANS TO COOPERATIVES-
`(A) IN GENERAL- The Secretary may make or guarantee a loan under
subsection (a) to a cooperative that is headquartered in a metropolitan
area if the loan is used for a project or venture described in subsection
(a) that is located in a rural area.
`(B) REFINANCING- A cooperative organization owned by farmers or
ranchers that is eligible for a business and industry loan under made or
guaranteed under subsection (a) shall be eligible to refinance an existing
loan with a lender if--
`(i) the cooperative organization--
`(I) is current and performing with respect to the existing
loan; and
`(II) is not, and has not been, in payment default, or the
collateral has not been converted, with respect to the existing loan;
and
`(ii) there is adequate security or full collateral for the
refinanced loan.
`(3) BUSINESS AND INDUSTRY LOAN APPRAISALS- The Secretary may
require that any appraisal made in connection with a business and industry
loan made or guaranteed under subsection (a) be conducted by a specialized
appraiser that uses standards that are similar to standards used for similar
purposes in the private sector, as determined by the Secretary.
`(4) FEES- The Secretary may assess a 1-time fee for any loan
guaranteed under subsection (a) in an amount that does not exceed 2 percent
of the guaranteed principal portion of the loan.'.
SEC. 636. VALUE-ADDED INTERMEDIARY RELENDING PROGRAM.
Section 310B of the Consolidated Farm and Rural Development Act (7
U.S.C. 1932) (as amended by section 626(b)) is amended by adding at the end
the following:
`(i) VALUE-ADDED INTERMEDIARY RELENDING PROGRAM-
`(1) IN GENERAL- In accordance with this subsection, the Secretary
shall make loans under the terms and conditions of the intermediary
relending program established under section 1323(b)(2)(C) of the Food
Security Act of 1985 (7 U.S.C. 1932 note; Public Law 99-198).
`(2) LOANS- Using funds made available to carry out this subsection,
the Secretary shall make loans to eligible intermediaries to make loans to
ultimate recipients, under the terms and conditions of the intermediary
relending program, for projects to establish, enlarge, and operate
enterprises that add value to agricultural commodities and products of
agricultural commodities.
`(3) ELIGIBLE INTERMEDIARIES- Intermediaries that are eligible to
receive loans under paragraph (2) shall include State agencies.
`(4) PREFERENCE FOR BIOENERGY PROJECTS- In making loans using loan
funds made available under paragraph (2), an eligible intermediary shall
give preference to bioenergy projects in accordance with regulations
promulgated by the Secretary.
`(5) COMPOSITION OF CAPITAL- The capital for a project carried out
by an ultimate recipient and assisted with loan funds made available under
paragraph (2) shall be comprised of--
`(A) not more than 15 percent of the total cost of a project;
and
`(B) not less than 50 percent of the equity funds provided by
agricultural producers.
`(A) TERMS OF LOANS- A loan made to an intermediary using loan
funds made available under paragraph (2) shall have a term of not to
exceed 30 years.
`(B) INTEREST- The interest rate on such a loan shall
be--
`(i) in the case of each of the first 2 years of the loan
period, 0 percent; and
`(ii) in the case of each of the remaining years of the loan
period, 2 percent.
`(7) LIMITATIONS ON AMOUNT OF LOAN FUNDS PROVIDED-
`(A) IN GENERAL- Except as provided in subparagraph (B), an
intermediary or ultimate recipient shall be eligible to receive not more
than $2,000,000 of the loan funds made available under paragraph
(2).
`(B) STATE AGENCIES- Subparagraph (A) shall not apply in the case
of a State agency with respect to loan funds provided to the State agency
as an intermediary.
`(8) AUTHORIZATION OF APPROPRIATIONS- There is authorized to be
appropriated to carry out this subsection $15,000,000 for each of fiscal
years 2003 through 2006.'.
SEC. 637. USE OF RURAL DEVELOPMENT LOANS AND GRANTS FOR OTHER
PURPOSES.
Subtitle A of the Consolidated Farm and Rural Development Act (7
U.S.C. 1921 et seq.) (as amended by section 508) is amended by adding at the
end the following:
`SEC. 310G. USE OF RURAL DEVELOPMENT LOANS AND GRANTS FOR OTHER
PURPOSES.
`If, after making a loan or a grant described in section 381E(d), the
Secretary determines that the circumstances under which the loan or grant was
made have sufficiently changed to make the project or activity for which the
loan or grant was made available no longer appropriate, the Secretary may
allow the loan borrower or grant recipient to use property (real and personal)
purchased or improved with the loan or grant funds, or proceeds from the sale
of property (real and personal) purchased with such funds, for another project
or activity that (as determined by the Secretary)--
`(1) will be carried out in the same area as the original project or
activity;
`(2) meets the criteria for a loan or a grant described in section
381E(d); and
`(3) satisfies such additional requirements as are established by
the Secretary.'.
SEC. 638. SIMPLIFIED APPLICATION FORMS FOR LOAN GUARANTEES.
Section 333A of the Consolidated Farm and Rural Development Act (7
U.S.C. 1983a) (as amended by section 526) is amended by striking subsection
(g) and inserting the following:
`(g) SIMPLIFIED APPLICATION FORMS FOR LOAN GUARANTEES-
`(1) IN GENERAL- The Secretary shall provide to lenders a short,
simplified application form for guarantees under this title of--
`(A) farmer program loans the principal amount of which is
$100,000 or less; and
`(B) business and industry guaranteed loans under section
310B(a)(1) the principal amount of which is--
`(i) in the case of a loan guarantee made during fiscal year
2002 or 2003, $400,000 or less; and
`(ii) in the case of a loan guarantee made during any subsequent
fiscal year--
`(I) $400,000 or less; or
`(II) if the Secretary determines that there is not a
significant increased risk of a default on the loan, $600,000 or
less.
`(2) WATER AND WASTE DISPOSAL GRANTS AND LOANS- The Secretary shall
develop an application process that accelerates, to the maximum extent
practicable, the processing of applications for water and waste disposal
grants or direct or guaranteed loans under paragraph (1) or (2) of section
306(a) the grant award amount or principal loan amount, respectively, of
which is $300,000 or less.
`(3) ADMINISTRATION- In developing an application under this
subsection, the Secretary shall--
`(A) consult with commercial and cooperative lenders;
and
`(i) the form can be completed manually or electronically, at
the option of the lender;
`(ii) the form minimizes the documentation required to accompany
the form;
`(iii) the cost of completing and processing the form is
minimal; and
`(iv) the form can be completed and processed in an expeditious
manner.'.
SEC. 639. DEFINITION OF RURAL AND RURAL AREA.
(a) IN GENERAL- Section 343(a) of the Consolidated Farm and Rural
Development Act (7 U.S.C. 1991(a)) is amended by adding at the end the
following:
`(13) RURAL AND RURAL AREA-
`(A) IN GENERAL- Except as otherwise provided in this paragraph,
the terms `rural' and `rural area' mean a city, town, or unincorporated
area that has a population of 50,000 inhabitants or less, other than an
urbanized area immediately adjacent to a city, town, or unincorporated
area that has a population in excess of 50,000 inhabitants.
`(B) WATER AND WASTE DISPOSAL GRANTS AND DIRECT AND GUARANTEED
LOANS- For the purpose of water and waste disposal grants and direct and
guaranteed loans provided under paragraphs (1) and (2) of section 306(a),
the terms `rural' and `rural area' mean a city, town, or unincorporated
area that has a population of no more than 10,000
inhabitants.
`(C) COMMUNITY FACILITY LOANS AND GRANTS- For the purpose of
community facility direct and guaranteed loans and grants under paragraphs
(1), (19), (20), and (21) of section 306(a), the terms `rural' and `rural
area' mean a city, town, or unincorporated area that has a population of
no more than 50,000 inhabitants.
`(D) BUSINESS AND INDUSTRY DIRECT AND GUARANTEED LOANS- For the
purpose of business and industry direct and guaranteed loans under section
310B(a)(1), the terms `rural' and `rural area' mean any area other than a
city or town that has a population of greater than 50,000 inhabitants and
the immediately adjacent urbanized area of such city or
town.
`(E) MULTIJURISDICTIONAL REGIONAL PLANNING ORGANIZATIONS; NATIONAL
RURAL DEVELOPMENT PARTNERSHIP- In sections 306(a)(23) and 377, the term
`rural area' means--
`(i) all the territory of a State that is not within the
boundary of any standard metropolitan statistical area;
and
`(ii) all territory within any standard metropolitan statistical
area within a census tract having a population density of less than 20
persons per square mile, as determined by the Secretary according to the
most recent census of the United States as of any date.
`(F) RURAL ENTREPRENEURS AND MICROENTERPRISE ASSISTANCE PROGRAM;
NATIONAL RURAL COOPERATIVE AND BUSINESS EQUITY FUND; RURAL BUSINESS
INVESTMENT PROGRAM- In section 378 and subtitles G and H, the term `rural
area' means an area that is located--
`(i) outside a standard metropolitan statistical area;
or
`(ii) within a community that has a population of 50,000
inhabitants or less.'.
(b) CONFORMING AMENDMENTS-
(1) Section 306(a) of the Consolidated Farm and Rural Development
Act (7 U.S.C. 1926(a)) is amended by striking paragraph (7).
(2) Section 381A of the Consolidated Farm and Rural Development Act
(7 U.S.C. 2009) is amended--
(A) by striking paragraph (1); and
(B) by redesignating paragraphs (2) and (3) as paragraphs (1) and
(2), respectively.
(3) Section 735 of the Agriculture, Rural Development, Food and Drug
Administration, and Related Agencies Appropriations Act, 1999 (112 Stat.
2681-29) is repealed.
SEC. 640. RURAL ENTREPRENEURS AND MICROENTERPRISE ASSISTANCE
PROGRAM.
Subtitle D of the Consolidated Farm and Rural Development Act (as
amended by section 612) is amended by adding at the end the following:
`SEC. 378. RURAL ENTREPRENEURS AND MICROENTERPRISE ASSISTANCE
PROGRAM.
`(a) DEFINITIONS- In this section:
`(1) ECONOMICALLY DISADVANTAGED MICROENTREPRENEUR- The term
`economically disadvantaged microentrepreneur' means an owner, majority
owner, or developer of a microenterprise that has the ability to compete in
the private sector but has been impaired due to diminished capital and
credit opportunities, as compared to other microentrepreneurs in the
industry.
`(2) INDIAN TRIBE- The term `Indian tribe' has the meaning given the
term in section 4 of the Indian Self-Determination and Education Assistance
Act (25 U.S.C. 450b).
`(3) INTERMEDIARY- The term `intermediary' means a private,
nonprofit entity that provides assistance--
`(A) to a microenterprise development organization;
or
`(B) for a microenterprise development program.
`(4) LOW-INCOME INDIVIDUAL- The term `low-income individual' means
an individual with an income (adjusted for family size) of not more than the
greater of--
`(A) 80 percent of median income of an area; or
`(B) 80 percent of the statewide nonmetropolitan area median
income.
`(5) MICROCREDIT- The term `microcredit' means a business loan or
loan guarantee of not more than $35,000 provided to a rural
entrepreneur.
`(6) MICROENTERPISE- The term `microenterprise' means a sole
proprietorship, joint enterprise, limited liability company, partnership,
corporation, or cooperative that--
`(A) has 5 or fewer employees; and
`(B) is unable to obtain sufficient credit, equity, or banking
services elsewhere, as determined by the Secretary.
`(7) MICROENTERPRISE DEVELOPMENT ORGANIZATION-
`(A) IN GENERAL- The term `microenterprise development
organization' means a nonprofit entity that provides training and
technical assistance to rural entrepreneurs and access to capital or
another service described in subsection (c) to rural
entrepreneurs.
`(B) INCLUSIONS- The term `microenterprise development
organization' includes an organization described in subparagraph (A) with
a demonstrated record of delivering services to economically disadvantaged
microentrepreneurs.
`(8) MICROENTERPRISE DEVELOPMENT PROGRAM- The term `microenterprise
development organization' means a program administered by a organization
serving a rural area.
`(9) MICROENTREPRENEUR- The term `microentrepreneur' means the
owner, operator, or developer of a microenterprise.
`(10) PROGRAM- The term `program' means the rural entrepreneur and
microenterprise program established under subsection (b)(1).
`(11) QUALIFIED ORGANIZATION- The term `qualified organization'
means--
`(A) a microenterprise development organization or microenterprise
development program that has a demonstrated record of delivering
microenterprise services to rural entrepreneurs, as demonstrated by the
development of an effective plan of action and the possession of necessary
resources to deliver microenterprise services to rural entrepreneurs
effectively, as determined by the Secretary;
`(B) an intermediary that has a demonstrated record of delivery
assistance to microenterprise development organizations or microenterprise
development programs;
`(C) a microenterprise development organization or microenterprise
development program that--
`(i) serves rural entrepreneurs; and
`(ii) enters into an agreement with a local community, in
conjunction with a State or local government or Indian tribe, to provide
assistance described in subsection (c);
`(D) an Indian tribe, the tribal government of which certifies to
the Secretary that no microenterprise development organization or
microenterprise development program exists under the jurisdiction of the
Indian tribe; or
`(E) a group of 2 or more organizations or Indian tribes described
in subparagraph (A), (B), (C), or (D) that agree to act jointly as a
qualified organization under this section.
`(12) RURAL CAPACITY BUILDING SERVICE- The term `rural capacity
building service' means a service provided to an organization
that--
`(A) is, or is in the process of becoming, a microenterprise
development organization or microenterprise development program;
and
`(B) serves rural areas for the purpose of enhancing the ability
of the organization to provide training, technical assistance, and other
related services to rural entrepreneurs.
`(13) RURAL ENTREPRENEUR- The term `rural entrepreneur' means a
microentrepreneur, or prospective microentrepreneur--
`(A) the principal place of business of which is in a rural area;
and
`(B) that is unable to obtain sufficient training, technical
assistance, or microcredit elsewhere, as determined by the
Secretary.
`(14) SECRETARY- The term `Secretary' means the Secretary of
Agriculture, acting through the Rural Business-Cooperative
Service.
`(15) TRAINING AND TECHNICAL ASSISTANCE-
`(A) IN GENERAL- The term `training and technical assistance'
means assistance provided to rural entrepreneurs to develop the skills the
rural entrepreneurs need to plan, market, and manage their own
business.
`(B) INCLUSIONS- The term `training and technical assistance'
includes assistance provided for the purpose of--
`(i) enhancing business planning, marketing, management, or
financial management skills; and
`(ii) obtaining microcredit.
`(16) TRIBAL GOVERNMENT- The term `tribal government' means the
governing body of an Indian tribe.
`(1) IN GENERAL- From amounts made available under subsection (h),
the Secretary shall establish a rural entrepreneur and microenterprise
program.
`(2) PURPOSE- The purpose of the program shall be to provide low-
and moderate-income individuals with--
`(A) the skills necessary to establish new small businesses in
rural areas; and
`(B) continuing technical assistance as the individuals begin
operating the small businesses.
`(1) IN GENERAL- The Secretary may make a grant under this section
to a qualified organization to--
`(A) provide training, technical assistance, or microcredit to a
rural entrepreneur;
`(B) provide training, operational support, or a rural capacity
building service to a qualified organization to assist the qualified
organization in developing microenterprise training, technical assistance,
and other related services;
`(C) assist in researching and developing the best practices in
delivering training, technical assistance, and microcredit to rural
entrepreneurs; and
`(D) to carry out such other projects and activities as the
Secretary determines are consistent with the purposes of this
section.
`(A) IN GENERAL- Subject to subparagraphs (B) and (C), of the
amount of funds made available for a fiscal year to make grants under this
section, the Secretary shall ensure that--
`(i) not less than 75 percent of funds are used to carry out
activities described in paragraph (1)(A); and
`(ii) not more than 25 percent of the funds are used to carry
out activities described in subparagraphs (B) through (D) of paragraph
(1).
`(B) LIMITATION ON GRANT AMOUNT- No single qualified organization
may receive more than 10 percent of the total funds that are made
available for a fiscal year to carry out this section.
`(C) ADMINISTRATIVE EXPENSES- Not more than 15 percent of
assistance received by a qualified organization for a fiscal year under
this section may be used for administrative expenses.
`(d) SUBGRANTS- Subject to such regulations as the Secretary may
promulgate, a qualified organization that receives a grant under this section
may use the grant to provide assistance to other qualified organizations, such
as small or emerging qualified organizations.
`(e) LOW-INCOME INDIVIDUALS- The Secretary shall ensure that not less
than 50 percent of the grants made under this section is used to benefit
low-income individuals identified by the Secretary, including individuals
residing on Indian reservations.
`(f) DIVERSITY- In making grants under this section, the Secretary
shall ensure, to the maximum extent practicable, that grant recipients include
qualified organizations--
`(1) of varying sizes; and
`(2) that serve racially and ethnically diverse
populations.
`(1) FEDERAL SHARE- The Federal share of the cost of a project
carried out using funds from a grant under this section shall be 75
percent.
`(2) FORM OF NON-FEDERAL SHARE- The non-Federal share of the cost of
a project described in paragraph (1) may be provided--
`(A) in cash (including through fees, grants (including community
development block grants), and gifts); or
`(1) IN GENERAL- Not later than 30 days after the date of enactment
of this Act, and on October 1, 2002, and each October 1 thereafter through
October 1, 2005, out of any funds in the Treasury not otherwise
appropriated, the Secretary of the Treasury shall transfer to the Secretary
of Agriculture to carry out this section $10,000,000, to remain available
until expended.
`(2) RECEIPT AND ACCEPTANCE- The Secretary shall be entitled to
receive, shall accept, and shall use to carry out this section the funds
transferred under paragraph (1), without further appropriation.'.
SEC. 641. RURAL SENIORS.
(a) INTERAGENCY COORDINATING COMMITTEE FOR RURAL SENIORS- Subtitle D
of the Consolidated Farm and Rural Development Act (7 U.S.C. 1981 et seq.) (as
amended by section 640) is amended by adding at the end the following:
`SEC. 379. INTERAGENCY COORDINATING COMMITTEE FOR RURAL
SENIORS.
`(a) IN GENERAL- The Secretary shall establish an interagency
coordinating committee (referred to in this section as the `Committee') to
examine the special problems of rural seniors.
`(b) MEMBERSHIP- The Committee shall be comprised of--
`(1) the Undersecretary of Agriculture for Rural Development, who
shall serve as chairperson of the Committee;
`(2) 2 representatives of the Secretary of Health and Human
Services, of whom--
`(A) 1 shall have expertise in the field of health care;
and
`(B) 1 shall have expertise in the field of programs under the
Older Americans Act of 1965 (42 U.S.C. 3001 et seq.);
`(3) 1 representative of the Secretary of Housing and Urban
Development;
`(4) 1 representative of the Secretary of the Interior;
`(5) 1 representative of the Secretary of Transportation;
and
`(6) representatives of such other Federal agencies as the Secretary
may designate.
`(c) DUTIES- The Committee shall--
`(1) study health care, transportation, technology, housing,
accessibility, and other areas of need of rural seniors;
`(2) identify successful examples of senior care programs in rural
communities that could serve as models for other rural communities;
and
`(3) not later than 1 year after the date of enactment of this
section, submit to the Secretary, the Committee on Agriculture of the House
of Representatives, and the Committee on Agriculture, Nutrition, and
Forestry of the Senate recommendations for legislative and administrative
action.
`(d) FUNDING- Funds available to any Federal agency may be used to
carry out interagency activities under this section.'.
(b) GRANTS FOR PROGRAMS FOR RURAL SENIORS- Subtitle D of the
Consolidated Farm and Rural Development Act (7 U.S.C. 1981 et seq.) (as
amended by subsection (a)) is amended by adding at the end the
following:
`SEC. 379A. GRANTS FOR PROGRAMS FOR RURAL SENIORS.
`(a) IN GENERAL- The Secretary shall make grants to nonprofit
organizations (including cooperatives) to pay the Federal share of the cost of
programs that--
`(1) provide facilities, equipment, and technology for seniors in a
rural area; and
`(2) may be replicated in other rural areas.
`(b) FEDERAL SHARE- The Federal share of a grant under this section
shall be not more than 20 percent of the cost of a program described in
subsection (a).
`(c) LEVERAGING- In selecting programs to receive grants under
section, the Secretary shall give priority to proposals that leverage
resources to meet multiple rural community goals.
`(d) AUTHORIZATION OF APPROPRIATIONS- There is authorized to be
appropriated to carry out this section $25,000,000 for each of fiscal years
2003 through 2006.'.
(c) RESERVATION OF COMMUNITY FACILITIES PROGRAM FUNDS FOR SENIOR
FACILITIES- Section 306(a)(19) of the Consolidated Farm and Rural Development
Act (7 U.S.C. 1926(a)(19)) is amended by adding at the end the
following:
`(C) RESERVATION OF FUNDS FOR SENIOR FACILITIES-
`(i) IN GENERAL- For each fiscal year, not less than 12.5
percent of the funds made available to carry out this paragraph shall be
reserved for grants to pay the Federal share of the cost of developing
and constructing senior facilities, or carrying out other projects that
mainly benefit seniors, in rural areas.
`(ii) RELEASE- Funds reserved under clause (i) for a fiscal year
shall be reserved only until April 1 of the fiscal
year.'.
SEC. 642. CHILDREN'S DAY CARE FACILITIES.
Section 306(a)(19) of the Consolidated Farm and Rural Development Act
(7 U.S.C. 1926(a)(19)) (as amended by section 641(c)) is amended by adding at
the end the following:
`(D) RESERVATION OF FUNDS FOR CHILDREN'S DAY CARE FACILITIES-
`(i) IN GENERAL- For each fiscal year, not less than 10 percent
of the funds made available to carry out this paragraph shall be
reserved for grants to pay the Federal share of the cost of developing
and constructing day care facilities for children in rural
areas.
`(ii) RELEASE- Funds reserved under clause (i) for a fiscal year
shall be reserved only until April 1 of the fiscal
year.'.
SEC. 643. RURAL TELEWORK.
Subtitle D of the Consolidated Farm and Rural Development Act (7
U.S.C. 1981 et seq.) (as amended by section 641(b)) is amended by adding at
the end the following:
`SEC. 379B. RURAL TELEWORK.
`(a) DEFINITIONS- In this section:
`(1) ELIGIBLE ORGANIZATION- The term `eligible organization' means a
nonprofit entity, an educational institution, an Indian tribe (as defined in
section 4 of the Indian Self-Determination and Education Assistance Act (25
U.S.C. 450b)), or any other organization that meets the requirements of this
section and such other requirements as are established by the
Secretary.
`(2) INSTITUTE- The term `institute' means a regional rural telework
institute established using a grant under subsection (b).
`(3) TELEWORK- The term `telework' means the use of
telecommunications to perform work functions at a rural work center located
outside the place of business of an employer.
`(b) RURAL TELEWORK INSTITUTE-
`(1) IN GENERAL- The Secretary shall make a grant to an eligible
organization to pay the Federal share of the cost of establishing and
operating a national rural telework institute to carry out projects
described in paragraph (4).
`(2) ELIGIBLE ORGANIZATIONS- The Secretary shall establish criteria
that an organization shall meet to be eligible to receive a grant under this
subsection.
`(3) DEADLINE FOR INITIAL GRANT- Not later than 1 year after the
date on which funds are first made available to carry out this subsection,
the Secretary shall make the initial grant under this subsection.
`(4) PROJECTS- The institute shall use grant funds obtained under
this subsection to carry out a 5-year project--
`(A) to serve as a clearinghouse for telework research and
development;
`(B) to conduct outreach to rural communities and rural
workers;
`(C) to develop and share best practices in rural telework
throughout the United States;
`(D) to develop innovative, market-driven telework projects and
joint ventures with the private sector that employ workers in rural areas
in jobs that promote economic self-sufficiency;
`(E) to share information about the design and implementation of
telework arrangements;
`(F) to support private sector businesses that are transitioning
to telework;
`(G) to support and assist telework projects and individuals at
the State and local level; and
`(H) to perform such other functions as the Secretary considers
appropriate.
`(A) IN GENERAL- As a condition of receiving a grant under this
subsection, an eligible organization shall agree to obtain, after the
application of the eligible organization has been approved and notice of
award has been issued, contributions from non-Federal sources that are
equal to--
`(i) during each of the first, second, and third years of a
project, 50 percent of the amount of the grant; and
`(ii) during each of the fourth and fifth years of the project,
100 percent of the amount of the grant.
`(B) INDIAN TRIBES- Notwithstanding subparagraph (A), an Indian
tribe may use Federal funds made available to the tribe for
self-governance to pay the non-Federal contributions required under
subparagraph (A).
`(C) FORM- The non-Federal contributions required under
subparagraph (A) may be in the form of in-kind contributions, including
office equipment, office space, and services.
`(1) IN GENERAL- Subject to paragraphs (2) through (5), the
Secretary shall make grants to eligible entities to pay the Federal share of
the cost of--
`(A) obtaining equipment and facilities to establish or expand
telework locations in rural areas; and
`(B) operating telework locations in rural areas.
`(2) ELIGIBLE ORGANIZATIONS- To be eligible to receive a grant under
this subsection, an eligible entity shall--
`(A) be a nonprofit organization or educational institution in a
rural area; and
`(B) submit to, and receive the approval of, the Secretary of an
application for the grant that demonstrates that the eligible entity has
adequate resources and capabilities to establish or expand a telework
location in a rural area.
`(A) IN GENERAL- As a condition of receiving a grant under this
subsection, an eligible organization shall agree to obtain, after the
application of the eligible organization has been approved and notice of
award has been issued, contributions from non-Federal sources that are
equal to 50 percent of the amount of the grant.
`(B) INDIAN TRIBES- Notwithstanding subparagraph (A), an Indian
tribe may use Federal funds made available to the tribe for
self-governance to pay the non-Federal contributions required under
subparagraph (A).
`(C) SOURCES- The non-Federal contributions required under
subparagraph (A)--
`(i) may be in the form of in-kind contributions, including
office equipment, office space, and services; and
`(ii) may not be made from funds made available for community
development block grants under title I of the Housing and Community
Development Act of 1974 (42 U.S.C. 5301 et seq.).
`(4) DURATION- The Secretary may not provide a grant under this
subsection to establish, expand, or operate a telework location in a rural
area after the date that is 2 years after the establishment of the telework
location.
`(5) MAXIMUM AMOUNT OF GRANT- The amount of a grant provided to an
eligible entity under this subsection shall not exceed $500,000.
`(d) APPLICABILITY OF CERTAIN FEDERAL LAW- An entity that receives
funds under this section shall be subject to the provisions of Federal law
(including regulations), administered by the Secretary of Labor or the Equal
Employment Opportunity Commission, that govern the responsibilities of
employers to employees.
`(e) REGULATIONS- Not later than 180 days after the date of enactment
of this section, the Secretary shall promulgate regulations to carry out this
section.
`(f) AUTHORIZATION OF APPROPRIATION- There is authorized to be
appropriated to carry out this section $30,000,000 for each of fiscal years
2002 through 2006, of which $5,000,000 shall be provided to establish an
institute under subsection (b).'.
SEC. 644. HISTORIC BARN PRESERVATION.
Subtitle D of the Consolidated Farm and Rural Development Act (7
U.S.C. 1981 et seq.) (as amended by section 643) is amended by adding at the
end the following:
`SEC. 379C. HISTORIC BARN PRESERVATION.
`(a) DEFINITIONS- In this section:
`(1) BARN- The term `barn' means a building (other than a dwelling)
on a farm, ranch, or other agricultural operation for--
`(B) storing or processing crops;
`(C) storing and maintaining agricultural equipment;
or
`(D) serving an essential or useful purpose related to agriculture
on the adjacent land.
`(2) ELIGIBLE APPLICANT- The term `eligible applicant'
means--
`(A) a State department of agriculture (or a
designee);
`(B) a national or State nonprofit organization
that--
`(i) is exempt from tax under section 501(c)(3) of the Internal
Revenue Code of 1986; and
`(ii) has experience or expertise, as determined by the
Secretary, in the identification, evaluation, rehabilitation,
preservation, or protection of historic barns; and
`(C) a State historic preservation office.
`(3) HISTORIC BARN- The term `historic barn' means a barn
that--
`(A) is at least 50 years old;
`(B) retains sufficient integrity of design, materials, and
construction to clearly identify the barn as an agricultural building;
and
`(C) meets the criteria for listing on National, State, or local
registers or inventories of historic structures.
`(4) SECRETARY- The term `Secretary' means the Secretary, acting
through the Undersecretary of Rural Development.
`(b) PROGRAM- The Secretary shall establish a historic barn
preservation program--
`(1) to assist States in developing a listing of historic
barns;
`(2) to collect and disseminate information on historic
barns;
`(3) to foster educational programs relating to the history,
construction techniques, rehabilitation, and contribution to society of
historic barns; and
`(4) to sponsor and conduct research on--
`(A) the history of barns; and
`(B) best practices to protect and rehabilitate historic barns
from the effects of decay, fire, arson, and natural
disasters.
`(1) IN GENERAL- The Secretary may make grants to, or enter into
contracts or cooperative agreements with, eligible applicants to carry out
an eligible project under paragraph (2).
`(2) ELIGIBLE PROJECTS- A grant under this subsection may be made to
an eligible entity for a project--
`(A) to rehabilitate or repair a historic barn;
`(B) to preserve a historic barn through--
`(i) the installation of a fire protection system, including
fireproofing or fire detection system and sprinklers;
and
`(ii) the installation of a system to prevent vandalism;
and
`(C) to identify, document, and conduct research on a historic
barn to develop and evaluate appropriate techniques or best practices for
protecting historic barns.
`(3) REQUIREMENTS- An eligible applicant that receives a grant for a
project under this subsection shall comply with any standards established by
the Secretary of the Interior for historic preservation projects.
`(d) FUNDING- There is authorized to be appropriated to carry out this
section, $25,000,000 for the period of fiscal years 2002 through 2006, to
remain available until expended.'.
SEC. 645. GRANTS FOR EMERGENCY WEATHER RADIO TRANSMITTERS.
Subtitle D of the Consolidated Farm and Rural Development Act (7
U.S.C. 1981 et seq.) (as amended by section 644)) is amended by adding at the
end the following:
`SEC. 379D. GRANTS FOR EMERGENCY WEATHER RADIO TRANSMITTERS.
`(a) IN GENERAL- The Secretary, acting through the Administrator of
the Rural Utilities Service, may make grants to public and nonprofit entities
for the Federal share of the cost of acquiring radio transmitters to increase
coverage of rural areas by the emergency weather radio broadcast system of the
National Oceanic and Atmospheric Administration.
`(b) ELIGIBILITY- To be eligible for a grant under this section, an
applicant shall provide to the Secretary--
`(1) a binding commitment from a tower owner to place the
transmitter on a tower; and
`(2) a description of how the tower placement will increase coverage
of a rural area by the emergency weather radio broadcast system of the
National Oceanic and Atmospheric Administration.
`(c) FEDERAL SHARE- A grant provided under this section shall be not
more than 75 percent of the cost of acquiring a radio transmitter described in
subsection (a).
`(d) AUTHORIZATION- There is authorized to be appropriated to carry
out this section $2,000,000 for each of fiscal years 2002 through
2006.'.
SEC. 646. GRANTS FOR TRAINING FARM WORKERS.
Subtitle D of the Consolidated Farm and Rural Development Act (7
U.S.C. 1981 et seq.) (as amended by section 645) is amended by adding at the
end the following:
`SEC. 379E. GRANTS FOR TRAINING FARM WORKERS.
`(a) DEFINITION OF ELIGIBLE ORGANIZATION- In this section, the term
`eligible organization' means--
`(1) a nonprofit organization; or
`(2) a consortium of nonprofit organizations, agribusinesses, State
and local governments, agricultural labor organizations, farmer
cooperatives, or community-based organizations;
that has the ability to train farm workers.
`(b) GRANTS- The Secretary shall make grants to eligible organizations
to provide training to farm workers--
`(1) on the use of technology in agriculture; and
`(2) to develop the specialized skills necessary to produce higher
value crops.
`(c) AUTHORIZATION OF APPROPRIATIONS- There is authorized to be
appropriated to carry out this section $10,000,000 for each of fiscal years
2002 through 2006.'.
SEC. 647. DELTA REGIONAL AUTHORITY.
(a) SUPPLEMENTS TO FEDERAL GRANT PROGRAMS- Section 382D of the
Consolidated Farm and Rural Development Act (7 U.S.C. 2009aa-3) is amended to
read as follows:
`SEC. 382D. SUPPLEMENTS TO FEDERAL GRANT PROGRAMS.
`(a) FINDING- Congress finds that certain States and local communities
of the region, including local development districts, may be unable to take
maximum advantage of Federal grant programs for which the States and
communities are eligible because--
`(1) they lack the economic resources to provide the required
matching share; or
`(2) there are insufficient funds available under the applicable
Federal law authorizing the Federal grant program to meet pressing needs of
the region.
`(b) FEDERAL GRANT PROGRAM FUNDING- Notwithstanding any provision of
law limiting the Federal share, the areas eligible for assistance, or the
authorizations of appropriations, under any Federal grant program, and in
accordance with subsection (c), the Authority, with the approval of the
Federal cochairperson and with respect to a project to be carried out in the
region, may--
`(1) increase the Federal share of the costs of a project under any
Federal grant program to not more than 90 percent (except as provided in
section 382F(b)); and
`(2) use amounts made available to carry out this subtitle to pay
all or a portion of the increased Federal share.
`(1) IN GENERAL- In the case of any project for which all or any
portion of the basic Federal share of the costs of the project is proposed
to be paid under this section, no Federal contribution shall be made until
the Federal official administering the Federal law that authorizes the
Federal grant program certifies that the project--
`(A) meets (except as provided in subsection (b)) the applicable
requirements of the applicable Federal grant program; and
`(B) could be approved for Federal contribution under the Federal
grant program if funds were available under the law for the
project.
`(2) CERTIFICATION BY AUTHORITY-
`(A) IN GENERAL- The certifications and determinations required to
be made by the Authority for approval of projects under this Act in
accordance with section 382I--
`(i) shall be controlling; and
`(ii) shall be accepted by the Federal
agencies.
`(B) ACCEPTANCE BY FEDERAL COCHAIRPERSON- In the case of any
project described in paragraph (1), any finding, report, certification, or
documentation required to be submitted with respect to the project to the
head of the department, agency, or instrumentality of the Federal
Government responsible for the administration of the Federal grant program
under which the project is carried out shall be accepted by the Federal
cochairperson.'.
(b) AUTHORIZATION OF APPROPRIATIONS- Section 382M(a) of the
Consolidated Farm and Rural Development Act (7 U.S.C. 2009aa-12(a)) is amended
by striking `2002' and inserting `2006'.
(c) TERMINATION OF AUTHORITY- Section 382N of the Consolidated Farm
and Rural Development Act (7 U.S.C. 2009aa-13) is amended by striking `2002'
and inserting `2006'.
(d) DELTA REGION AGRICULTURAL ECONOMIC DEVELOPMENT- Subtitle D of the
Consolidated Farm and Rural Development Act (7 U.S.C. 1981 et seq.) (as
amended by section 646) is amended by adding at the end the following:
`SEC. 379F. DELTA REGION AGRICULTURAL ECONOMIC DEVELOPMENT.
`(a) IN GENERAL- The Secretary may make grants to assist in the
development of state-of-the-art technology in animal nutrition (including
research and development of the technology) and value-added manufacturing to
promote an economic platform for the Delta region (as defined in section 382A)
to relieve severe economic conditions.
`(b) AUTHORIZATION OF APPROPRIATIONS- There are authorized to be
appropriated to carry out this section $7,000,000 for each of fiscal years
2002 through 2006.'.
(e) DEFINITION OF LOWER MISSISSIPPI- Section 4(2)(I) of the Delta
Development Act (42 U.S.C. 3121 note; Public Law 100-460) is amended by
inserting `Butler, Conecuh, Escambia, Monroe,' after `Russell,'.
SEC. 648. SEARCH GRANTS FOR SMALL COMMUNITIES.
The Consolidated Farm and Rural Development Act (as amended by section
604) is amended by adding at the end the following:
`Subtitle J--SEARCH Grants for Small Communities
`SEC. 386A. DEFINITIONS.
`(1) COUNCIL- The term `council' means an independent citizens'
council established by section 386B(d).
`(2) ENVIRONMENTAL PROJECT-
`(A) IN GENERAL- The term `environmental project' means a project
that--
`(i) improves environmental quality; and
`(ii) is necessary to comply with an environmental law
(including a regulation).
`(B) INCLUSION- The term `environmental project' includes an
initial feasibility study of a project.
`(3) REGION- The term `region' means a geographic area of a State,
as determined by the Governor of the State.
`(4) SEARCH GRANT- The term `SEARCH grant' means a grant for special
environmental assistance for the regulation of communities and habitat
awarded under section 386B(e)(3).
`(5) SMALL COMMUNITY- The term `small community' means an
incorporated or unincorporated rural community with a population of 2,500
inhabitants or less.
`(6) STATE- The term `State' has the meaning given the term in
section 381A(1).
`SEC. 386B. SEARCH GRANT PROGRAM.
`(a) IN GENERAL- There is established the SEARCH Grant
Program.
`(1) IN GENERAL- Not later than October 1 of each fiscal year, a
State may submit to the Secretary an application to receive a grant under
subsection (c) for the fiscal year.
`(2) REQUIREMENTS- An application under paragraph (1) shall
contain--
`(A) a certification by the State that the State has appointed
members to the council of the State under subsection (c)(2)(C);
and
`(B) such information as the Secretary may reasonably
require.
`(1) IN GENERAL- Not later than 60 days after the date on which the
Office of Management and Budget apportions any amounts made available under
this subtitle, for each fiscal year after the date of enactment of this
subtitle, the Secretary shall, on request by a State--
`(A) determine whether any application submitted by the State
under subsection (b) meets the requirements of subsection (b)(2);
and
`(B) subject to paragraph (2), subsection (e)(4)(B)(ii), and
section 386D(b), if the Secretary determines that the application meets
the requirements of subsection (b)(2), award a grant of not to exceed
$1,000,000 to the State, to be used by the council of the State to award
SEARCH grants under subsection (e).
`(2) GRANTS TO CERTAIN STATES- The aggregate amount of grants
awarded to States other than Alaska, Hawaii, or 1 of the 48 contiguous
States, under this subsection shall not exceed $1,000,000 for any fiscal
year.
`(d) INDEPENDENT CITIZENS' COUNCIL-
`(1) ESTABLISHMENT- There is established in each State an
independent citizens' council to carry out the duties described in this
section.
`(A) IN GENERAL- Each council shall be composed of 9 members,
appointed by the Governor of the State.
`(B) REPRESENTATION; RESIDENCE- Each member of a council
shall--
`(i) represent an individual region of the State, as determined
by the Governor of the State in which the council is
established;
`(ii) reside in a small community of the State;
and
`(iii) be representative of the populations of the
State.
`(C) APPOINTMENT- Before a State receives funds under this
subtitle, the State shall appoint members to the council for the fiscal
year, except that not more than 1 member shall be an agent, employee, or
official of the State government.
`(D) CHAIRPERSON- Each council shall select a chairperson from
among the members of the council, except that a member who is an agent,
employee, or official of the State government shall not serve as
chairperson.
`(E) FEDERAL REPRESENTATION-
`(i) IN GENERAL- An officer, employee, or agent of the Federal
Government may participate in the activities of the
council--
`(I) in an advisory capacity; and
`(II) at the invitation of the council.
`(ii) RURAL DEVELOPMENT STATE DIRECTORS- On the request of the
council of a State, the State Director for Rural Development of the
State shall provide advice and consultation to the
council.
`(A) IN GENERAL- Each council shall review applications for, and
recommend awards of, SEARCH grants to small communities that meet the
eligibility criteria under subsection (c).
`(B) RECOMMENDATIONS- In awarding a SEARCH grant, a
State--
`(i) shall follow the recommendations of the council of the
State;
`(ii) shall award the funds for any recommended environmental
project in a timely and expeditious manner; and
`(iii) shall not award a SEARCH grant to a grantee or project in
violation of any law of the State (including a
regulation).
`(C) NO MATCHING REQUIREMENT- A small community that receives a
SEARCH grant under this section shall not be required to provide matching
funds.
`(e) SEARCH GRANTS FOR SMALL COMMUNITIES-
`(1) ELIGIBILITY- A SEARCH grant shall be awarded under this section
only to a small community for 1 or more environmental projects for which the
small community--
`(A) needs funds to carry out initial feasibility or environmental
studies before applying to traditional funding sources; or
`(B) demonstrates, to the satisfaction of the council, that the
small community has been unable to obtain sufficient funding from
traditional funding sources.
`(A) DATE- The council shall establish such deadline by which
small communities shall submit applications for grants under this section
as will permit the council adequate time to review and make
recommendations relating to the applications.
`(B) LOCATION OF APPLICATION- A small community shall submit an
application described in subparagraph (A) to the council in the State in
which the small community is located.
`(C) CONTENT OF APPLICATION- An application described in
subparagraph (A) shall include--
`(i) a description of the proposed environmental project
(including an explanation of how the project would assist the small
community in complying with an environmental law (including a
regulation));
`(ii) an explanation of why the project is important to the
small community;
`(iii) a description of all actions taken with respect to the
project, including a description of any attempt to secure funding and a
description of demonstrated need for funding for the project, as of the
date of the application; and
`(iv) a SEARCH grant application form provided by the council,
completed and with all required supporting
documentation.
`(3) REVIEW AND RECOMMENDATION-
`(A) IN GENERAL- Except as provided in subparagraph (B), not later
than March 5 of each fiscal year, each council shall--
`(i) review all applications received under paragraph (2);
and
`(ii) recommend for award SEARCH grants to small communities
based on--
`(I) an evaluation of the eligibility criteria under paragraph
(1); and
`(II) the content of the application.
`(B) EXTENSION OF DEADLINE- The State may extend the deadline
described in subparagraph (A) by not more than 10 days in a case in which
the receipt of recommendations from a council under subparagraph (A)(ii)
is delayed because of circumstances beyond the control of the council, as
determined by the State.
`(A) IN GENERAL- If, for any fiscal year, any unexpended funds
remain after SEARCH grants are awarded under subsection (d)(3)(B), the
council may repeat the application and review process so that any
remaining funds may be recommended for award, and awarded, not later than
July 30 of the fiscal year.
`(i) IN GENERAL- Any unexpended funds that are not awarded under
subsection (d)(3)(B) or subparagraph (A) shall be retained by the State
for award during the following fiscal year.
`(ii) LIMITATION- A State that accumulates a balance of
unexpended funds described in clause (i) of more than $3,000,000 shall
be ineligible to apply for additional funds for SEARCH grants until such
time as the State expends the portion of the balance that exceeds
$3,000,000.
`SEC. 386C. REPORT.
`Not later than September 1 of the first fiscal year for which a
SEARCH grant is awarded by a council, and annually thereafter, the council
shall submit to the Secretary a report that--
`(1) describes the number of SEARCH grants awarded during the fiscal
year;
`(2) identifies each small community that received a SEARCH grant
during the fiscal year;
`(3) describes the project or purpose for which each SEARCH grant
was awarded, including a statement of the benefit to public health or the
environment of the environmental project receiving the grant funds;
and
`(4) describes the status of each project or portion of a project
for which a SEARCH grant was awarded, including a project or portion of a
project for which a SEARCH grant was awarded for any fiscal year before the
fiscal year in which the report is submitted.
`SEC. 386D. FUNDING.
`(a) AUTHORIZATION OF APPROPRIATIONS- There is authorized to be
appropriated to carry out section 386B(c) $51,000,000, of which not to exceed
$1,000,000 shall be used to make grants under section 386B(c)(2).
`(b) ACTUAL APPROPRIATION- If funds to carry out section 386B(c) are
made available for a fiscal year in an amount that is less than the amount
authorized under subsection (a) for the fiscal year, the appropriated funds
shall be divided equally among the 50 States.
`(c) UNUSED FUNDS- If, for any fiscal year, a State does not apply, or
does not qualify, to receive funds under section 386B(b), the funds that would
have been made available to the State under section 386B(c) on submission by
the State of a successful application under section 386B(b) shall be
redistributed for award under this subtitle among States, the councils of
which awarded 1 or more SEARCH grants during the preceding fiscal
year.
`(d) OTHER EXPENSES- There are authorized to be appropriated such sums
as are necessary to carry out the provisions of this subtitle (other than
section 386B(c)).'.
SEC. 649. NORTHERN GREAT PLAINS REGIONAL AUTHORITY.
The Consolidated Farm and Rural Development Act (as amended by section
648) is amended by adding at the end the following:
`Subtitle K--Northern Great Plains Regional
Authority
`SEC. 387A. DEFINITIONS.
`(1) AUTHORITY- The term `Authority' means the Northern Great Plains
Regional Authority established by section 387B.
`(2) FEDERAL GRANT PROGRAM- The term `Federal grant program' means a
Federal grant program to provide assistance in--
`(A) implementing the recommendations of the Northern Great Plains
Rural Development Commission established by the Northern Great Plains
Rural Development Act (7 U.S.C. 2661 note; Public Law
103-318);
`(B) acquiring or developing land;
`(C) constructing or equipping a highway, road, bridge, or
facility;
`(D) carrying out other economic development activities;
or
`(E) conducting research activities related to the activities
described in subparagraphs (A) through (D).
`(3) INDIAN TRIBE- The term `Indian tribe' has the meaning given the
term in section 4 of the Indian Self-Determination and Education Assistance
Act (25 U.S.C. 450b).
`(4) REGION- The term `region' means the States of Iowa, Minnesota,
Nebraska, North Dakota, and South Dakota.
`SEC. 387B. NORTHERN GREAT PLAINS REGIONAL AUTHORITY.
`(1) IN GENERAL- There is established the Northern Great Plains
Regional Authority.
`(2) COMPOSITION- The Authority shall be composed of--
`(A) a Federal member, to be appointed by the President, by and
with the advice and consent of the Senate;
`(B) the Governor (or a designee of the Governor) of each State in
the region that elects to participate in the Authority; and
`(C) a member of an Indian tribe, who shall be a chairperson of an
Indian tribe in the region or a designee of such a chairperson, to be
appointed by the President, by and with the advice and consent of the
Senate.
`(3) COCHAIRPERSONS- The Authority shall be headed by--
`(A) the Federal member, who shall serve--
`(i) as the Federal cochairperson; and
`(ii) as a liaison between the Federal Government and the
Authority;
`(B) a State cochairperson, who--
`(i) shall be a Governor of a participating State in the region;
and
`(ii) shall be elected by the State members for a term of not
less than 1 year; and
`(C) the member of an Indian tribe, who shall
serve--
`(i) as the tribal cochairperson; and
`(ii) as a liaison between the governments of Indian tribes in
the region and the Authority.
`(1) ALTERNATE FEDERAL COCHAIRPERSON- The President shall appoint an
alternate Federal cochairperson.
`(A) IN GENERAL- The State member of a participating State may
have a single alternate, who shall be--
`(i) a resident of that State; and
`(ii) appointed by the Governor of the State.
`(B) QUORUM- A State alternate member shall not be counted toward
the establishment of a quorum of the members of the Authority in any case
in which a quorum of the State members is required to be
present.
`(3) ALTERNATE TRIBAL COCHAIRPERSON- The President shall appoint an
alternate tribal cochairperson, by and with the advice and consent of the
Senate.
`(4) DELEGATION OF POWER- No power or responsibility of the
Authority specified in paragraphs (2) and (3) of subsection (c), and no
voting right of any member of the Authority, shall be delegated to any
person who is not--
`(A) a member of the Authority; or
`(B) entitled to vote in Authority meetings.
`(1) IN GENERAL- A decision by the Authority shall require a
majority vote of the Authority (not including any member representing a
State that is delinquent under subsection (g)(2)(D)) to be
effective.
`(2) QUORUM- A quorum of State members shall be required to be
present for the Authority to make any policy decision,
including--
`(A) a modification or revision of an Authority policy
decision;
`(B) approval of a State or regional development plan;
and
`(C) any allocation of funds among the States.
`(3) PROJECT AND GRANT PROPOSALS- The approval of project and grant
proposals shall be--
`(A) a responsibility of the Authority; and
`(B) conducted in accordance with section 387I.
`(4) VOTING BY ALTERNATE MEMBERS- An alternate member shall vote in
the case of the absence, death, disability, removal, or resignation of the
Federal, State, or Indian tribe member for whom the alternate member is an
alternate.
`(d) DUTIES- The Authority shall--
`(1) develop, on a continuing basis, comprehensive and coordinated
plans and programs to establish priorities and approve grants for the
economic development of the region, giving due consideration to other
Federal, State, tribal, and local planning and development activities in the
region;
`(2) not later than 220 days after the date of enactment of this
subtitle, establish priorities in a development plan for the region
(including 5-year regional outcome targets);
`(3) assess the needs and assets of the region based on available
research, demonstrations, investigations, assessments, and evaluations of
the region prepared by Federal, State, tribal, and local agencies,
universities, local development districts, and other nonprofit
groups;
`(4) formulate and recommend to the Governors and legislatures of
States that participate in the Authority forms of interstate
cooperation;
`(5) work with State, tribal, and local agencies in developing
appropriate model legislation;
`(6)(A) enhance the capacity of, and provide support for, local
development districts in the region; or
`(B) if no local development district exists in an area in a
participating State in the region, foster the creation of a local
development district;
`(7) encourage private investment in industrial, commercial, and
other economic development projects in the region; and
`(8) cooperate with and assist State governments with economic
development programs of participating States.
`(e) ADMINISTRATION- In carrying out subsection (d), the Authority
may--
`(1) hold such hearings, sit and act at such times and places, take
such testimony, receive such evidence, and print or otherwise reproduce and
distribute a description of the proceedings and reports on actions by the
Authority as the Authority considers appropriate;
`(2) authorize, through the Federal, State, or tribal cochairperson
or any other member of the Authority designated by the Authority, the
administration of oaths if the Authority determines that testimony should be
taken or evidence received under oath;
`(3) request from any Federal, State, tribal, or local agency such
information as may be available to or procurable by the agency that may be
of use to the Authority in carrying out the duties of the
Authority;
`(4) adopt, amend, and repeal bylaws and rules governing the conduct
of business and the performance of duties of the Authority;
`(5) request the head of any Federal agency to detail to the
Authority such personnel as the Authority requires to carry out duties of
the Authority, each such detail to be without loss of seniority, pay, or
other employee status;
`(6) request the head of any State agency, tribal government, or
local government to detail to the Authority such personnel as the Authority
requires to carry out duties of the Authority, each such detail to be
without loss of seniority, pay, or other employee status;
`(7) provide for coverage of Authority employees in a suitable
retirement and employee benefit system by--
`(A) making arrangements or entering into contracts with any
participating State government or tribal government; or
`(B) otherwise providing retirement and other employee benefit
coverage;
`(8) accept, use, and dispose of gifts or donations of services or
real, personal, tangible, or intangible property;
`(9) enter into and perform such contracts, leases, cooperative
agreements, or other transactions as are necessary to carry out Authority
duties, including any contracts, leases, or cooperative agreements
with--
`(A) any department, agency, or instrumentality of the United
States;
`(B) any State (including a political subdivision, agency, or
instrumentality of the State);
`(C) any Indian tribe in the region; or
`(D) any person, firm, association, or corporation;
and
`(10) establish and maintain a central office and field offices at
such locations as the Authority may select.
`(f) FEDERAL AGENCY COOPERATION- A Federal agency shall--
`(1) cooperate with the Authority; and
`(2) provide, on request of the Federal cochairperson, appropriate
assistance in carrying out this subtitle, in accordance with applicable
Federal laws (including regulations).
`(g) ADMINISTRATIVE EXPENSES-
`(1) FEDERAL SHARE- The Federal share of the administrative expenses
of the Authority shall be--
`(A) for fiscal year 2002, 100 percent;
`(B) for fiscal year 2003, 75 percent; and
`(C) for fiscal year 2004 and each fiscal year thereafter, 50
percent.
`(A) IN GENERAL- The non-Federal share of the administrative
expenses of the Authority shall be paid by non-Federal sources in the
States that participate in the Authority.
`(B) SHARE PAID BY EACH STATE- The share of administrative
expenses of the Authority to be paid by non-Federal sources in each State
shall be determined by the Authority.
`(C) NO FEDERAL PARTICIPATION- The Federal cochairperson shall not
participate or vote in any decision under subparagraph (B).
`(D) DELINQUENT STATES- If a State is delinquent in payment of the
State's share of administrative expenses of the Authority under this
subsection--
`(i) no assistance under this subtitle shall be provided to the
State (including assistance to a political subdivision or a resident of
the State); and
`(ii) no member of the Authority from the State shall
participate or vote in any action by the Authority.
`(1) FEDERAL AND TRIBAL COCHAIRPERSONS- The Federal cochairperson
and the tribal cochairperson shall be compensated by the Federal Government
at the annual rate of basic pay prescribed for level III of the Executive
Schedule in subchapter II of chapter 53 of title 5, United States
Code.
`(2) ALTERNATE FEDERAL AND TRIBAL COCHAIRPERSONS- The alternate
Federal cochairperson and the alternate tribal cochairperson--
`(A) shall be compensated by the Federal Government at the annual
rate of basic pay prescribed for level V of the Executive Schedule
described in paragraph (1); and
`(B) when not actively serving as an alternate, shall perform such
functions and duties as are delegated by the Federal cochairperson or the
tribal cochairperson, respectively.
`(3) STATE MEMBERS AND ALTERNATES-
`(A) IN GENERAL- A State shall compensate each member and
alternate representing the State on the Authority at the rate established
by State law.
`(B) NO ADDITIONAL COMPENSATION- No State member or alternate
member shall receive any salary, or any contribution to or supplementation
of salary from any source other than the State for services provided by
the member or alternate member to the Authority.
`(A) IN GENERAL- No person detailed to serve the Authority under
subsection (e)(6) shall receive any salary or any contribution to or
supplementation of salary for services provided to the Authority
from--
`(i) any source other than the State, tribal, local, or
intergovernmental agency from which the person was detailed;
or
`(B) VIOLATION- Any person that violates this paragraph shall be
fined not more than $5,000, imprisoned not more than 1 year, or
both.
`(C) APPLICABLE LAW- The Federal cochairperson, the alternate
Federal cochairperson, and any Federal officer or employee detailed to
duty on the Authority under subsection (e)(5) shall not be subject to
subparagraph (A), but shall remain subject to sections 202 through 209 of
title 18, United States Code.
`(5) ADDITIONAL PERSONNEL-
`(i) IN GENERAL- The Authority may appoint and fix the
compensation of an executive director and such other personnel as are
necessary to enable the Authority to carry out the duties of the
Authority.
`(ii) EXCEPTION- Compensation under clause (i) shall not exceed
the maximum rate for the Senior Executive Service under section 5382 of
title 5, United States Code, including any applicable locality-based
comparability payment that may be authorized under section 5304(h)(2)(C)
of that title.
`(B) EXECUTIVE DIRECTOR- The executive director shall be
responsible for--
`(i) the carrying out of the administrative duties of the
Authority;
`(ii) direction of the Authority staff; and
`(iii) such other duties as the Authority may
assign.
`(C) NO FEDERAL EMPLOYEE STATUS- No member, alternate, officer, or
employee of the Authority (except the Federal cochairperson of the
Authority, the alternate and staff for the Federal cochairperson, and any
Federal employee detailed to the Authority under subsection (e)(5)) shall
be considered to be a Federal employee for any purpose.
`(i) CONFLICTS OF INTEREST-
`(1) IN GENERAL- Except as provided under paragraph (2), no State
member, Indian tribe member, State alternate, officer, or employee of the
Authority shall participate personally and substantially as a member,
alternate, officer, or employee of the Authority, through decision,
approval, disapproval, recommendation, the rendering of advice,
investigation, or otherwise, in any proceeding, application, request for a
ruling or other determination, contract, claim, controversy, or other matter
in which, to knowledge of the member, alternate, officer, or
employee--
`(A) the member, alternate, officer, or employee;
`(B) the spouse, minor child, partner, or organization (other than
a State or political subdivision of the State or the Indian tribe) of the
member, alternate, officer, or employee, in which the member, alternate,
officer, or employee is serving as officer, director, trustee, partner, or
employee; or
`(C) any person or organization with whom the member, alternate,
officer, or employee is negotiating or has any arrangement concerning
prospective employment;
has a financial interest.
`(2) DISCLOSURE- Paragraph (1) shall not apply if the State member,
Indian tribe member, alternate, officer, or employee--
`(A) immediately advises the Authority of the nature and
circumstances of the proceeding, application, request for a ruling or
other determination, contract, claim, controversy, or other particular
matter presenting a potential conflict of interest;
`(B) makes full disclosure of the financial interest;
and
`(C) before the proceeding concerning the matter presenting the
conflict of interest, receives a written determination by the Authority
that the interest is not so substantial as to be likely to affect the
integrity of the services that the Authority may expect from the State
member, Indian tribe member, alternate, officer, or
employee.
`(3) VIOLATION- Any person that violates this subsection shall be
fined not more than $10,000, imprisoned not more than 2 years, or
both.
`(j) VALIDITY OF CONTRACTS, LOANS, AND GRANTS- The Authority may
declare void any contract, loan, or grant of or by the Authority in relation
to which the Authority determines that there has been a violation of any
provision under subsection (h)(4) or subsection (i) of this subtitle, or
sections 202 through 209 of title 18, United States Code.
`SEC. 387C. ECONOMIC AND COMMUNITY DEVELOPMENT GRANTS.
`(a) IN GENERAL- The Authority may approve grants to States, Indian
tribes, local governments, and public and nonprofit organizations for
projects, approved in accordance with section 387I--
`(1) to develop the transportation and telecommunication
infrastructure of the region for the purpose of facilitating economic
development in the region (except that grants for this purpose may be made
only to States, Indian tribes, local governments, and nonprofit
organizations);
`(2) to assist the region in obtaining the job training,
employment-related education, and business development (with an emphasis on
entrepreneurship) that are needed to build and maintain strong local
economies;
`(3) to provide assistance to severely distressed and underdeveloped
areas that lack financial resources for improving basic public
services;
`(4) to provide assistance to severely distressed and underdeveloped
areas that lack financial resources for equipping industrial parks and
related facilities; and
`(5) to otherwise achieve the purposes of this subtitle.
`(1) IN GENERAL- Funds for grants under subsection (a) may be
provided--
`(A) entirely from appropriations to carry out this
section;
`(B) in combination with funds available under another Federal
grant program; or
`(C) from any other source.
`(2) PRIORITY OF FUNDING- To best build the foundations for
long-term economic development and to complement other Federal, State, and
tribal resources in the region, Federal funds available under this subtitle
shall be focused on the activities in the following order or
priority:
`(A) Basic public infrastructure in distressed counties and
isolated areas of distress.
`(B) Transportation and telecommunication infrastructure for the
purpose of facilitating economic development in the region.
`(C) Business development, with emphasis on
entrepreneurship.
`(D) Job training or employment-related education, with emphasis
on use of existing public educational institutions located in the
region.
`(3) FEDERAL SHARE IN GRANT PROGRAMS- Notwithstanding any provision
of law limiting the Federal share in any grant program, funds appropriated
to carry out this section may be used to increase a Federal share in a grant
program, as the Authority determines appropriate.
`SEC. 387D. SUPPLEMENTS TO FEDERAL GRANT PROGRAMS.
`(a) FINDING- Congress finds that certain States and local communities
of the region, including local development districts, may be unable to take
maximum advantage of Federal grant programs for which the States and
communities are eligible because--
`(1) they lack the economic resources to provide the required
matching share; or
`(2) there are insufficient funds available under the applicable
Federal law authorizing the Federal grant program to meet pressing needs of
the region.
`(b) FEDERAL GRANT PROGRAM FUNDING- Notwithstanding any provision of
law limiting the Federal share, the areas eligible for assistance, or the
authorizations of appropriations, under any Federal grant program, and in
accordance with subsection (c), the Authority, with the approval of the
Federal cochairperson and with respect to a project to be carried out in the
region, may--
`(1) increase the Federal share of the costs of a project under any
Federal grant program to not more than 90 percent (except as provided in
section 387F(b)); and
`(2) use amounts made available to carry out this subtitle to pay
all or a portion of the increased Federal share.
`(1) IN GENERAL- In the case of any project for which all or any
portion of the basic Federal share of the costs of the project is proposed
to be paid under this section, no Federal contribution shall be made until
the Federal official administering the Federal law that authorizes the
Federal grant program certifies that the project--
`(A) meets (except as provided in subsection (b)) the applicable
requirements of the applicable Federal grant program; and
`(B) could be approved for Federal contribution under the Federal
grant program if funds were available under the law for the
project.
`(2) CERTIFICATION BY AUTHORITY-
`(A) IN GENERAL- The certifications and determinations required to
be made by the Authority for approval of projects under this Act in
accordance with section 387I--
`(i) shall be controlling; and
`(ii) shall be accepted by the Federal
agencies.
`(B) ACCEPTANCE BY FEDERAL COCHAIRPERSON- In the case of any
project described in paragraph (1), any finding, report, certification, or
documentation required to be submitted with respect to the project to the
head of the department, agency, or instrumentality of the Federal
Government responsible for the administration of the Federal grant program
under which the project is carried out shall be accepted by the Federal
cochairperson.
`SEC. 387E. LOCAL DEVELOPMENT DISTRICTS AND ORGANIZATIONS AND NORTHERN
GREAT PLAINS INC.
`(a) DEFINITION OF LOCAL DEVELOPMENT DISTRICT- In this section, the
term `local development district' means an entity--
`(A) is a planning district in existence on the date of enactment
of this subtitle that is recognized by the Economic Development
Administration of the Department of Commerce; or
`(i) organized and operated in a manner that ensures broad-based
community participation and an effective opportunity for other nonprofit
groups to contribute to the development and implementation of programs
in the region;
`(ii) governed by a policy board with at least a simple majority
of members consisting of--
`(I) elected officials or employees of a general purpose unit
of local government who have been appointed to represent the
government; or
`(II) individuals appointed by the general purpose unit of
local government to represent the government;
`(iii) certified to the Authority as having a charter or
authority that includes the economic development of counties or parts of
counties or other political subdivisions within the
region--
`(I) by the Governor of each State in which the entity is
located; or
`(II) by the State officer designated by the appropriate State
law to make the certification; and
`(iv)(I) a nonprofit incorporated body organized or chartered
under the law of the State in which the entity is
located;
`(II) a nonprofit agency or instrumentality of a State or local
government;
`(III) a public organization established before the date of
enactment of this subtitle under State law for creation of
multi-jurisdictional, area-wide planning organizations;
or
`(IV) a nonprofit association or combination of bodies,
agencies, and instrumentalities described in subclauses (I) through
(III); and
`(2) that has not, as certified by the Federal
cochairperson--
`(A) inappropriately used Federal grant funds from any Federal
source; or
`(B) appointed an officer who, during the period in which another
entity inappropriately used Federal grant funds from any Federal source,
was an officer of the other entity.
`(b) GRANTS TO LOCAL DEVELOPMENT DISTRICTS-
`(1) IN GENERAL- The Authority may make grants for administrative
expenses under this section.
`(2) CONDITIONS FOR GRANTS-
`(A) MAXIMUM AMOUNT- The amount of any grant awarded under
paragraph (1) shall not exceed 80 percent of the administrative expenses
of the local development district receiving the grant.
`(B) MAXIMUM PERIOD- No grant described in paragraph (1) shall be
awarded to a State agency certified as a local development district for a
period greater than 3 years.
`(C) LOCAL SHARE- The contributions of a local development
district for administrative expenses may be in cash or in kind, fairly
evaluated, including space, equipment, and services.
`(c) DUTIES OF LOCAL DEVELOPMENT DISTRICTS- A local development
district shall--
`(1) operate as a lead organization serving multicounty areas in the
region at the local level; and
`(2) serve as a liaison between State, tribal, and local
governments, nonprofit organizations (including community-based groups and
educational institutions), the business community, and citizens
that--
`(A) are involved in multijurisdictional planning;
`(B) provide technical assistance to local jurisdictions and
potential grantees; and
`(C) provide leadership and civic development
assistance.
`(d) NORTHERN GREAT PLAINS INC- Northern Great Plains Inc., a
nonprofit corporation incorporated in the State of Minnesota to implement the
recommendations of the Northern Great Plains Rural Development Commission
established by the Northern Great Plains Rural Development Act (7 U.S.C. 2661
note; Public Law 103-318)--
`(1) shall serve as an independent, primary resource for the
Authority on issues of concern to the region;
`(2) shall advise the Authority on development of international
trade;
`(3) may provide research, education, training, and other support to
the Authority; and
`(4) may carry out other activities on its own behalf or on behalf
of other entities.
`SEC. 387F. DISTRESSED COUNTIES AND AREAS AND NONDISTRESSED
COUNTIES.
`(a) DESIGNATIONS- Not later than 90 days after the date of enactment
of this subtitle, and annually thereafter, the Authority, in accordance with
such criteria as the Authority may establish, shall designate--
`(1) as distressed counties, counties in the region that are the
most severely and persistently distressed and underdeveloped and have high
rates of poverty, unemployment, or outmigration;
`(2) as nondistressed counties, counties in the region that are not
designated as distressed counties under paragraph (1); and
`(3) as isolated areas of distress, areas located in nondistressed
counties (as designated under paragraph (2)) that have high rates of
poverty, unemployment, or outmigration.
`(b) DISTRESSED COUNTIES-
`(1) IN GENERAL- The Authority shall allocate at least 75 percent of
the appropriations made available under section 387M for programs and
projects designed to serve the needs of distressed counties and isolated
areas of distress in the region.
`(2) FUNDING LIMITATIONS- The funding limitations under section
387D(b) shall not apply to a project to provide transportation or
telecommunication or basic public services to residents of 1 or more
distressed counties or isolated areas of distress in the region.
`(c) NONDISTRESSED COUNTIES-
`(1) IN GENERAL- Except as provided in this subsection, no funds
shall be provided under this subtitle for a project located in a county
designated as a nondistressed county under subsection (a)(2).
`(A) IN GENERAL- The funding prohibition under paragraph (1) shall
not apply to grants to fund the administrative expenses of local
development districts under section 387E(b).
`(B) MULTICOUNTY PROJECTS- The Authority may waive the application
of the funding prohibition under paragraph (1) to--
`(i) a multicounty project that includes participation by a
nondistressed county; or
`(ii) any other type of project;
if the Authority determines that the project could bring
significant benefits to areas of the region outside a nondistressed
county.
`(C) ISOLATED AREAS OF DISTRESS- For a designation of an isolated
area of distress for assistance to be effective, the designation shall be
supported--
`(i) by the most recent Federal data available;
or
`(ii) if no recent Federal data are available, by the most
recent data available through the government of the State in which the
isolated area of distress is located.
`(d) TRANSPORTATION, TELECOMMUNICATION, AND BASIC PUBLIC
INFRASTRUCTURE- The Authority shall allocate at least 50 percent of any funds
made available under section 387M for transportation, telecommunication, and
basic public infrastructure projects authorized under paragraphs (1) and (3)
of section 387C(a).
`SEC. 387G. DEVELOPMENT PLANNING PROCESS.
`(a) STATE DEVELOPMENT PLAN- In accordance with policies established
by the Authority, each State member shall submit a development plan for the
area of the region represented by the State member.
`(b) CONTENT OF PLAN- A State development plan submitted under
subsection (a) shall reflect the goals, objectives, and priorities identified
in the regional development plan developed under section 387B(d)(2).
`(c) CONSULTATION WITH INTERESTED LOCAL PARTIES- In carrying out the
development planning process (including the selection of programs and projects
for assistance), a State may--
`(A) local development districts; and
`(B) local units of government; and
`(2) take into consideration the goals, objectives, priorities, and
recommendations of the entities described in paragraph (1).
`(d) PUBLIC PARTICIPATION-
`(1) IN GENERAL- The Authority and applicable State and local
development districts shall encourage and assist, to the maximum extent
practicable, public participation in the development, revision, and
implementation of all plans and programs under this subtitle.
`(2) REGULATIONS- The Authority shall develop guidelines for
providing public participation described in paragraph (1), including public
hearings.
`SEC. 387H. PROGRAM DEVELOPMENT CRITERIA.
`(a) IN GENERAL- In considering programs and projects to be provided
assistance under this subtitle, and in establishing a priority ranking of the
requests for assistance provided to the Authority, the Authority shall follow
procedures that ensure, to the maximum extent practicable, consideration
of--
`(1) the relationship of the project or class of projects to overall
regional development;
`(2) the per capita income and poverty and unemployment and
outmigration rates in an area;
`(3) the financial resources available to the applicants for
assistance seeking to carry out the project, with emphasis on ensuring that
projects are adequately financed to maximize the probability of successful
economic development;
`(4) the importance of the project or class of projects in relation
to other projects or classes of projects that may be in competition for the
same funds;
`(5) the prospects that the project for which assistance is sought
will improve, on a continuing rather than a temporary basis, the
opportunities for employment, the average level of income, or the economic
development of the area to be served by the project; and
`(6) the extent to which the project design provides for detailed
outcome measurements by which grant expenditures and the results of the
expenditures may be evaluated.
`(b) NO RELOCATION ASSISTANCE- No financial assistance authorized by
this subtitle shall be used to assist a person or entity in relocating from
one area to another, except that financial assistance may be used as otherwise
authorized by this title to attract businesses from outside the region to the
region.
`(c) MAINTENANCE OF EFFORT- Funds may be provided for a program or
project in a State under this subtitle only if the Authority determines that
the level of Federal or State financial assistance provided under a law other
than this subtitle, for the same type of program or project in the same area
of the State within the region, will not be reduced as a result of funds made
available by this subtitle.
`SEC. 387I. APPROVAL OF DEVELOPMENT PLANS AND PROJECTS.
`(a) IN GENERAL- A State or regional development plan or any
multistate subregional plan that is proposed for development under this
subtitle shall be reviewed by the Authority.
`(b) EVALUATION BY STATE MEMBER- An application for a grant or any
other assistance for a project under this subtitle shall be made through and
evaluated for approval by the State member of the Authority representing the
applicant.
`(c) CERTIFICATION- An application for a grant or other assistance for
a project shall be approved only on certification by the State member that the
application for the project--
`(1) describes ways in which the project complies with any
applicable State development plan;
`(2) meets applicable criteria under section 387H;
`(3) provides adequate assurance that the proposed project will be
properly administered, operated, and maintained; and
`(4) otherwise meets the requirements of this subtitle.
`(d) VOTES FOR DECISIONS- On certification by a State member of the
Authority of an application for a grant or other assistance for a specific
project under this section, an affirmative vote of the Authority under section
387B(c) shall be required for approval of the application.
`SEC. 387J. CONSENT OF STATES.
`Nothing in this subtitle requires any State to engage in or accept
any program under this subtitle without the consent of the State.
`SEC. 387K. RECORDS.
`(a) RECORDS OF THE AUTHORITY-
`(1) IN GENERAL- The Authority shall maintain accurate and complete
records of all transactions and activities of the Authority.
`(2) AVAILABILITY- All records of the Authority shall be available
for audit and examination by the Comptroller General of the United States
and the Inspector General of the Department of Agriculture (including
authorized representatives of the Comptroller General and the Inspector
General of the Department of Agriculture).
`(b) RECORDS OF RECIPIENTS OF FEDERAL ASSISTANCE-
`(1) IN GENERAL- A recipient of Federal funds under this subtitle
shall, as required by the Authority, maintain accurate and complete records
of transactions and activities financed with Federal funds and report to the
Authority on the transactions and activities to the Authority.
`(2) AVAILABILITY- All records required under paragraph (1) shall be
available for audit by the Comptroller General of the United States, the
Inspector General of the Department of Agriculture, and the Authority
(including authorized representatives of the Comptroller General, the
Inspector General of the Department of Agriculture, and the
Authority).
`(c) ANNUAL AUDIT- The Inspector General of the Department of
Agriculture shall audit the activities, transactions, and records of the
Authority on an annual basis.
`SEC. 387L. ANNUAL REPORT.
`Not later than 180 days after the end of each fiscal year, the
Authority shall submit to the President and to Congress a report describing
the activities carried out under this subtitle.
`SEC. 387M. AUTHORIZATION OF APPROPRIATIONS.
`(a) IN GENERAL- There is authorized to be appropriated to the
Authority to carry out this subtitle $30,000,000 for each of fiscal years 2002
through 2006, to remain available until expended.
`(b) ADMINISTRATIVE EXPENSES- Not more than 5 percent of the amount
appropriated under subsection (a) for a fiscal year shall be used for
administrative expenses of the Authority.
`(c) MINIMUM STATE SHARE OF GRANTS- Notwithstanding any other
provision of this subtitle, for any fiscal year, the aggregate amount of
grants received by a State and all persons or entities in the State under this
subtitle shall be not less than 1/3 of the product obtained by
multiplying--
`(1) the aggregate amount of grants under this subtitle for the
fiscal year; and
`(A) the population of the State (as determined by the Secretary
of Commerce based on the most recent decennial census for which data are
available); bears to
`(B) the population of the region (as so
determined).
`SEC. 387N. TERMINATION OF AUTHORITY.
`The authority provided by this subtitle terminates effective October
1, 2006.'.
Subtitle D--Food, Agriculture, Conservation, and Trade Act of
1990
SEC. 651. ALTERNATIVE AGRICULTURAL RESEARCH AND COMMERCIALIZATION
CORPORATION.
(a) REPEAL OF CORPORATION AUTHORIZATION- Subtitle G of title XVI of
the Food, Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 5901 et
seq.) is repealed.
(b) DISPOSITION OF ASSETS- On the date of enactment of this
Act--
(1) the assets, both tangible and intangible, of the Alternative
Agricultural Research and Commercialization Corporation (referred to in this
section as the `Corporation'), including the funds in the Alternative
Agricultural Research and Commercialization Revolving Fund as of the date of
enactment of this Act, are transferred to the Secretary of Agriculture;
and
(2) notwithstanding the Federal Property and Administrative Services
Act of 1949 (40 U.S.C. 471 et seq.), the Secretary shall have authority to
manage and dispose of the assets transferred under paragraph (1) in a manner
that, to the maximum extent practicable, provides the greatest return on
investment.
(1) IN GENERAL- Funds transferred under subsection (b), and any
income from assets or proceeds from the sale of assets transferred under
subsection (b), shall be deposited into an account in the Treasury, and
shall remain available to the Secretary until expended, without further
appropriation, to pay--
(A) any outstanding claims or obligations of the Corporation;
and
(B) the costs incurred by the Secretary in carrying out this
section.
(2) FINAL DISPOSITION- On final disposition of all assets
transferred under subsection (b), any funds remaining in the account
described in paragraph (1) shall be transferred into miscellaneous receipts
in the Treasury.
(d) CONFORMING AMENDMENTS-
(1) The following provisions are repealed:
(A) Section 730 of the Federal Agriculture Improvement and Reform
Act of 1996 (7 U.S.C. 5902 note; Public Law 104-127).
(B) Section 9101(3)(Q) of title 31, United States
Code.
(2) Section 401(c) of the Agricultural Research, Education, and
Extension Reform Act of 1998 (7 U.S.C. 7621(c)) is amended by striking
paragraph (1) and inserting the following:
`(1) CRITICAL EMERGING ISSUES- Subject to paragraph (2), the
Secretary shall use the funds in the Account for research, extension, and
education grants (referred to in this section as `grants') to address
critical emerging agricultural issues related to--
`(A) future food production;
`(B) environmental quality and natural resource management;
or
(3) Section 793(c)(1)(A)(ii)(II) of the Federal Agriculture
Improvement and Reform Act of 1996 (7 U.S.C. 2204f(c)(1)(A)(ii)(II)) is
amended by striking `subtitle G of title XVI and'.
SEC. 652. TELEMEDICINE AND DISTANCE LEARNING SERVICES IN RURAL
AREAS.
(a) IN GENERAL- Section 2335A of the Food, Agriculture, Conservation,
and Trade Act of 1990 (7 U.S.C. 950aaa-5) is amended by striking `2002' and
inserting `2006'.
(b) CONFORMING AMENDMENT- Section 1(b) of Public Law 102-551 (7 U.S.C.
950aaa note) is amended by striking `1997' and inserting `2006'.
Subtitle E--Rural Electrification Act of 1936
SEC. 661. GUARANTEES FOR BONDS AND NOTES ISSUED FOR ELECTRIFICATION OR
TELEPHONE PURPOSES.
(a) IN GENERAL- The Rural Electrification Act of 1936 is amended by
inserting after section 313 (7 U.S.C. 940c) the following:
`SEC. 313A. GUARANTEES FOR BONDS AND NOTES ISSUED FOR ELECTRIFICATION OR
TELEPHONE PURPOSES.
`(a) IN GENERAL- Subject to subsection (b), the Secretary shall
guarantee payments on bonds or notes issued by cooperative or other lenders
organized on a not-for-profit basis if the proceeds of the bonds or notes are
used for electrification or telephone projects eligible for assistance under
this Act, including the refinancing of bonds or notes issued for such
projects.
`(1) OUTSTANDING LOANS- A lender shall not receive a guarantee under
this section for a bond or note if, at the time of the guarantee, the total
principal amount of such guaranteed bonds or notes outstanding of the lender
would exceed the principal amount of outstanding loans of the lender for
electrification or telephone purposes that have been made concurrently with
loans approved for such purposes under this Act.
`(2) GENERATION OF ELECTRICITY- The Secretary shall not guarantee
payment on a bond or note issued by a lender, the proceeds of which are used
for the generation of electricity.
`(3) QUALIFICATIONS- The Secretary may deny the request of a lender
for the guarantee of a bond or note under this section if the Secretary
determines that--
`(A) the lender does not have appropriate expertise or experience
or is otherwise not qualified to make loans for electrification or
telephone purposes;
`(B) the bond or note issued by the lender is not of reasonable
and sufficient quality; or
`(C) the lender has not provided sufficient evidence that the
proceeds of the bond or note are used for eligible projects described in
subsection (a).
`(4) INTEREST RATE REDUCTION-
`(A) IN GENERAL- Except as provided in subparagraph (B), a lender
may not use any amount obtained from the reduction in funding costs as a
result of the guarantee of a bond or note under this section to reduce the
interest rate on a new or outstanding loan.
`(B) CONCURRENT LOANS- A lender may use any amount described in
subparagraph (A) to reduce the interest rate on a loan if the loan
is--
`(i) made by the lender for electrification or telephone
projects that are eligible for assistance under this Act;
and
`(ii) made concurrently with a loan approved by the Secretary
under this Act for such a project, as provided in section
307.
`(1) IN GENERAL- A lender that receives a guarantee issued under
this section on a bond or note shall pay a fee to the Secretary.
`(2) AMOUNT- The amount of an annual fee paid for the guarantee of a
bond or note under this section shall be equal to 30 basis points of the
amount of the unpaid principal of the bond or note guaranteed under this
section.
`(3) PAYMENT- A lender shall pay the fees required under this
subsection on a semiannual basis.
`(4) RURAL ECONOMIC DEVELOPMENT SUBACCOUNT- Subject to subsection
(e)(2), fees collected under this subsection shall be--
`(A) deposited into the rural economic development subaccount
maintained under section 313(b)(2)(A), to remain available until expended;
and
`(B) used for the purposes described in section
313(b)(2)(B).
`(1) IN GENERAL- A guarantee issued under this section
shall--
`(A) be for the full amount of a bond or note, including the
amount of principal, interest, and call premiums;
`(B) be fully assignable and transferable; and
`(C) represent the full faith and credit of the United
States.
`(2) LIMITATION- To ensure that the Secretary has the resources
necessary to properly examine the proposed guarantees, the Secretary may
limit the number of guarantees issued under this section if the number of
such guarantees exceeds 5 per year.
`(3) DEPARTMENT OPINION- On the timely request of an eligible
lender, the General Counsel of the Department of Agriculture shall provide
the Secretary with an opinion regarding the validity and authority of a
guarantee issued to the lender under this section.
`(e) AUTHORIZATION OF APPROPRIATIONS-
`(1) IN GENERAL- There are authorized to be appropriated such sums
as are necessary to carry out this section.
`(2) FEES- To the extent that the amount of funds appropriated for a
fiscal year under paragraph (1) are not sufficient to carry out this
section, the Secretary may use up to 1/3 of the fees collected under
subsection (c) for the cost of providing guarantees of bonds and notes under
this section before depositing the remainder of the fees into the rural
economic development subaccount maintained under section
313(b)(2)(A).
`(f) TERMINATION- The authority provided under this section shall
terminate on September 30, 2006.'.
(1) REGULATIONS- Not later than 180 days after the date of enactment
of this Act, the Secretary of Agriculture shall promulgate regulations to
carry out the amendments made by this section.
(2) IMPLEMENTATION- Not later than 240 days after the date of
enactment of this Act, the Secretary shall implement the amendment made by
this section.
SEC. 662. EXPANSION OF 911 ACCESS.
Title III of the Rural Electrification Act of 1936 (7 U.S.C. 931 et
seq.) is amended by adding the following:
`SEC. 315. EXPANSION OF 911 ACCESS.
`(a) IN GENERAL- Subject to such terms and conditions as the Secretary
may prescribe, the Secretary may make telephone loans under this title to
State or local governments, Indian tribes (as defined in section 4 of the
Indian Self-Determination and Education Assistance Act (25 U.S.C. 450b)), or
other public entities for facilities and equipment to expand 911 access in
underserved rural areas.
`(b) AUTHORIZATION OF APPROPRIATIONS- There are authorized to be
appropriated such sums as are necessary to carry out this section.'.
TITLE VII--AGRICULTURAL RESEARCH, EDUCATION, AND EXTENSION AND
RELATED MATTERS
Subtitle A--National Agricultural Research, Extension, and Teaching
Policy Act of 1977
SEC. 701. DEFINITIONS.
(a) IN GENERAL- Section 1404 of the National Agricultural Research,
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3103) is
amended--
(1) by redesignating paragraphs (10) through (17) as paragraphs (11)
through (18), respectively;
(2) by inserting after paragraph (9) the following:
`(10) INSULAR AREA- The term `insular area' means--
`(A) the Commonwealth of Puerto Rico;
`(D) the Commonwealth of the Northern Mariana
Islands;
`(E) the Federated States of Micronesia;
`(F) the Republic of the Marshall Islands;
`(G) the Republic of Palau; and
`(H) the Virgin Islands of the United States.'; and
(3) by striking paragraph (13) (as so redesignated) and inserting
the following:
`(13) STATE- The term `State' means--
`(B) the District of Columbia; and
(b) EFFECT OF AMENDMENTS- The amendments made by subsection (a) shall
not affect any basis for distribution of funds by formula (in effect on the
date of enactment of this Act) to--
(1) the Federated States of Micronesia;
(2) the Republic of the Marshall Islands; or
(3) the Republic of Palau.
SEC. 702. NATIONAL AGRICULTURAL RESEARCH, EXTENSION, EDUCATION, AND
ECONOMICS ADVISORY BOARD.
Section 1408(h) of the National Agricultural Research, Extension, and
Teaching Policy Act of 1977 (7 U.S.C. 3123(h)) is amended by striking `2002'
and inserting `2006'.
SEC. 703. GRANTS AND FELLOWSHIPS FOR FOOD AND AGRICULTURAL SCIENCES
EDUCATION.
Section 1417 of the National Agricultural Research, Extension, and
Teaching Policy Act of 1977 (7 U.S.C. 3152) is amended--
(A) by striking `and' after `economics,'; and
(B) by inserting `, and rural economic, community, and business
development' before the period;
(A) in paragraph (1), by inserting `, or in rural economic,
community, and business development' before the semicolon;
(B) in paragraph (2), by inserting `, or in rural economic,
community, and business development' before the semicolon;
(C) in paragraph (3), by inserting `, or teaching programs
emphasizing rural economic, community, and business development' before
the semicolon;
(D) in paragraph (4), by inserting `, or programs emphasizing
rural economic, community, and business development,' after `programs';
and
(E) in paragraph (5), by inserting `, or professionals in rural
economic, community, and business development' before the
semicolon;
(A) in paragraph (1), by inserting `, or in rural economic,
community, and business development,' after `sciences'; and
(B) in paragraph (2), by inserting `, or in the rural economic,
community, and business development workforce,' after `workforce';
and
(4) in subsection (l), by striking `2002' and inserting
`2006'.
SEC. 704. COMPETITIVE RESEARCH FACILITIES GRANT PROGRAM.
The National Agricultural Research, Extension, and Teaching Policy Act
of 1977 is amended by inserting after section 1417 (7 U.S.C. 3152) the
following:
`SEC. 1417A. COMPETITIVE RESEARCH FACILITIES GRANT PROGRAM.
`(a) AUTHORITY- The Secretary may award grants to eligible
institutions on a competitive basis for the construction, acquisition,
modernization, renovation, alteration, and remodeling of food and agricultural
research facilities such as buildings, laboratories, and other capital
facilities (including acquisition of fixtures and equipment) in accordance
with this section.
`(b) ELIGIBLE INSTITUTIONS- The following institutions are eligible to
compete for grants under subsection (a):
`(1) A State cooperative institution.
`(2) A Hispanic-serving institution.
`(c) CRITERIA FOR AWARD- The Secretary shall award grants to support
the national research purposes specified in section 1402 in a manner
determined by the Secretary.
`(1) IN GENERAL- The Secretary may establish such matching
requirements for grants under subsection (a) as the Secretary considers
appropriate.
`(2) FORM OF MATCH- Matching requirements established by the
Secretary may be met with unreimbursed indirect costs and in-kind
contributions.
`(3) EVALUATION PREFERENCE- The Secretary may include an evaluation
preference for projects for which the applicant proposes funds for the
direct costs of a project to meet the required match.
`(e) TARGETED INSTITUTIONS- The Secretary may determine that a portion
of funds made available to carry out this section shall be targeted to
particular eligible institutions to enhance the capacity of the eligible
institutions to carry out research.
`(1) REGULATIONS- The Secretary shall promulgate such regulations as
are necessary to carry out this section.
`(2) STATES WITH MORE THAN 1 ELIGIBLE INSTITUTION- In a State having
more than 1 eligible institution, the Secretary shall establish procedures
in accordance with the purposes specified in section 1402 to ensure that the
facility proposals of the eligible institutions in the State provide for a
coordinated food and agricultural research program among eligible
institutions in the State.
`(g) APPLICABILITY OF THE FEDERAL ADVISORY COMMITTEE ACT- The Federal
Advisory Committee Act (5 U.S.C. App.) and title XVIII of the Food and
Agriculture Act of 1977 (7 U.S.C. 2281 et seq.) shall not apply to a panel or
board created solely for the purpose of reviewing applications or proposals
submitted under this section.
`(h) ADVISORY BOARD- In carrying out this section, the Secretary shall
consult with the Advisory Board.
`(i) AUTHORIZATION OF APPROPRIATIONS- There are authorized to be
appropriated such sums as are necessary to carry out this section for each of
fiscal years 2002 through 2006.'.
SEC. 705. GRANTS FOR RESEARCH ON THE PRODUCTION AND MARKETING OF
ALCOHOLS AND INDUSTRIAL HYDROCARBONS FROM AGRICULTURAL COMMODITIES AND FOREST
PRODUCTS.
Section 1419(d) of the National Agricultural Research, Extension, and
Teaching Policy Act of 1977 (7 U.S.C. 3154(d)) is amended by striking `2002'
and inserting `2006'.
SEC. 706. POLICY RESEARCH CENTERS.
Section 1419A of the National Agricultural Research, Extension, and
Teaching Policy Act of 1977 (7 U.S.C. 3155) is amended--
(1) in subsection (c)(3), by striking `collect and analyze' and
inserting `collect, analyze, and disseminate'; and
(2) in subsection (d), by striking `2002' and inserting
`2006'.
SEC. 707. HUMAN NUTRITION INTERVENTION AND HEALTH PROMOTION RESEARCH
PROGRAM.
Section 1424(d) of the National Agricultural Research, Extension, and
Teaching Policy Act of 1977 (7 U.S.C. 3174(d)) is amended by striking `2002'
and inserting `2006'.
SEC. 708. PILOT RESEARCH PROGRAM TO COMBINE MEDICAL AND AGRICULTURAL
RESEARCH.
Section 1424A(d) of the National Agricultural Research, Extension, and
Teaching Policy Act of 1977 (7 U.S.C. 3174a(d)) is amended by striking `2002'
and inserting `2006'.
SEC. 709. NUTRITION EDUCATION PROGRAM.
Section 1425(c)(3) of the National Agricultural Research, Extension,
and Teaching Policy Act of 1977 (7 U.S.C. 3175(c)(3)) is amended by striking
`2002' and inserting `2006'.
SEC. 710. ANIMAL HEALTH AND DISEASE RESEARCH PROGRAMS.
Section 1433(a) of the National Agricultural Research, Extension, and
Teaching Policy Act of 1977 (7 U.S.C. 3195(a)) is amended in the first
sentence by striking `2002' and inserting `2006'.
SEC. 711. RESEARCH ON NATIONAL OR REGIONAL PROBLEMS.
Section 1434(a) of the National Agricultural Research, Extension, and
Teaching Policy Act of 1977 (7 U.S.C. 3196(a)) is amended by striking `2002'
and inserting `2006'.
SEC. 712. EDUCATION GRANTS PROGRAMS FOR HISPANIC-SERVING
INSTITUTIONS.
Section 1455(c) of the National Agricultural Research, Extension, and
Teaching Policy Act of 1977 (7 U.S.C. 3241(c)) is amended by striking `2002'
and inserting `2006'.
SEC. 713. COMPETITIVE GRANTS FOR INTERNATIONAL AGRICULTURAL SCIENCE AND
EDUCATION PROGRAMS.
Section 1459A(c) of the National Agricultural Research, Extension, and
Teaching Policy Act of 1977 (7 U.S.C. 3292b(c)) is amended by striking `2002'
and inserting `2006'.
SEC. 714. INDIRECT COSTS.
Section 1462 of the National Agricultural Research, Extension, and
Teaching Policy Act of 1977 (7 U.S.C. 3310) is amended--
(1) by inserting `(a) IN GENERAL- ' before `Except';
(2) by striking `19 percent' and all that follows and inserting `the
negotiated indirect cost rate established for an institution by the
cognizant Federal audit agency for the institution.'; and
(3) by adding at the end the following:
`(b) EXCEPTION- Subsection (a) shall not apply to a grant awarded
competitively under section 9 of the Small Business Act (15 U.S.C.
638).'.
SEC. 715. RESEARCH EQUIPMENT GRANTS.
The National Agricultural Research, Extension, and Teaching Policy Act
of 1977 is amended by inserting after section 1462 (7 U.S.C. 3310) the
following:
`SEC. 1462A. RESEARCH EQUIPMENT GRANTS.
`(a) IN GENERAL- The Secretary may make competitive grants for the
acquisition of special purpose scientific research equipment for use in the
food and agricultural sciences programs of eligible institutions described in
subsection (b).
`(b) ELIGIBLE INSTITUTIONS- The Secretary may make a grant under this
section to--
`(1) a college or university; or
`(2) a State cooperative institution.
`(c) MAXIMUM AMOUNT- The amount of a grant made to an eligible
institution under this section may not exceed $500,000.
`(d) PROHIBITION ON CHARGE OF EQUIPMENT AS INDIRECT COSTS- The cost of
acquisition or depreciation of equipment purchased with a grant under this
section shall not be--
`(1) charged as an indirect cost against another Federal grant;
or
`(2) included as part of the indirect cost pool for purposes of
calculating the indirect cost rate of an eligible institution.
`(e) AUTHORIZATION OF APPROPRIATIONS- There is authorized to be
appropriated to carry out this section $50,000,000 for each of fiscal years
2002 through 2006.'.
SEC. 716. AGRICULTURAL RESEARCH PROGRAMS.
Section 1463 of the National Agricultural Research, Extension, and
Teaching Policy Act of 1977 (7 U.S.C. 3311) is amended--
(1) in subsection (a), by striking `$850,000,000 for each of the
fiscal years 1991 through 2002' and inserting `$1,500,000,000 for each of
fiscal years 2002 through 2006'; and
(2) in subsection (b), by striking `2002' and inserting
`2006'.
SEC. 717. EXTENSION EDUCATION.
Section 1464 of the National Agricultural Research, Extension, and
Teaching Policy Act of 1977 (7 U.S.C. 3312) is amended by striking
`$420,000,000' and all that follows and inserting the following: `$500,000,000
for each of fiscal years 2002 through 2006.'.
SEC. 718. AVAILABILITY OF COMPETITIVE GRANT FUNDS.
The National Agricultural Research, Extension, and Teaching Policy Act
of 1977 is amended by inserting after section 1469 (7 U.S.C. 3315) the
following:
`SEC. 1469A. AVAILABILITY OF COMPETITIVE GRANT FUNDS.
`Except as otherwise provided by law, funds made available to the
Secretary to carry out a competitive agricultural research, education, or
extension grant program under this or any other Act shall be available for
obligation for a 2-year period beginning on October 1 of the fiscal year for
which the funds are made available.'.
SEC. 719. JOINT REQUESTS FOR PROPOSALS.
(a) PURPOSES- The purposes of this section are--
(1) to reduce the duplication of administrative functions relating
to grant awards and administration among Federal agencies conducting similar
types of research, education, and extension programs;
(2) to maximize the use of peer review resources in research,
education, and extension programs; and
(3) to reduce the burden on potential recipients that may offer
similar proposals to receive competitive grants under different Federal
programs in overlapping subject areas.
(b) AUTHORITY- The National Agricultural Research, Extension, and
Teaching Policy Act of 1977 is amended by inserting after section 1473A (7
U.S.C. 3319a) the following:
`SEC. 1473B. JOINT REQUESTS FOR PROPOSALS.
`(a) IN GENERAL- In carrying out any competitive agricultural
research, education, or extension grant program authorized under this or any
other Act, the Secretary may cooperate with 1 or more other Federal agencies
(including the National Science Foundation) in issuing joint requests for
proposals, awarding grants, and administering grants, for similar or related
research, education, or extension projects or activities.
`(1) SECRETARY- The Secretary may transfer funds to, or receive
funds from, a cooperating Federal agency for the purpose of carrying out the
joint request for proposals, making awards, or administering
grants.
`(2) COOPERATING AGENCY- The cooperating Federal agency may transfer
funds to, or receive funds from, the Secretary for the purpose of carrying
out the joint request for proposals, making awards, or administering
grants.
`(3) LIMITATIONS- Funds transferred or received under this
subsection shall be--
`(A) used only in accordance with the laws authorizing the
appropriation of the funds; and
`(B) made available by grant only to recipients that are eligible
to receive the grant under the laws.
`(1) SECRETARY- The Secretary may delegate authority to issue
requests for proposals, make grant awards, or administer grants, in whole or
in part, to a cooperating Federal agency.
`(2) COOPERATING FEDERAL AGENCY- The cooperating Federal agency may
delegate to the Secretary authority to issue requests for proposals, make
grant awards, or administer grants, in whole or in part.
`(d) REGULATIONS; RATES- The Secretary and a cooperating Federal
agency may agree to make applicable to recipients of grants--
`(1) the post-award grant administration regulations and indirect
cost rates applicable to recipients of grants from the Secretary;
or
`(2) the post-award grant administration regulations and indirect
cost rates applicable to recipients of grants from the cooperating Federal
agency.
`(e) JOINT PEER REVIEW PANELS- Subject to section 1413B, the Secretary
and a cooperating Federal agency may establish joint peer review panels for
the purpose of evaluating grant proposals.'.
SEC. 720. SUPPLEMENTAL AND ALTERNATIVE CROPS.
Section 1473D(a) of the National Agricultural Research, Extension, and
Teaching Policy Act of 1977 (7 U.S.C. 3319d(a)) is amended by striking `2002'
and inserting `2006'.
SEC. 721. AQUACULTURE.
Section 1477 of the National Agricultural Research, Extension, and
Teaching Policy Act of 1977 (7 U.S.C. 3324) is amended in the first sentence
by striking `2002' and inserting `2006'.
SEC. 722. RANGELAND RESEARCH.
Section 1483(a) of the National Agricultural Research, Extension, and
Teaching Policy Act of 1977 (7 U.S.C. 3336(a)) is amended by striking `2002'
and inserting `2006'.
SEC. 723. BIOSECURITY PLANNING AND RESPONSE PROGRAMS.
(a) IN GENERAL- The National Agricultural Research, Extension, and
Teaching Policy Act of 1977 (7 U.S.C. 3101 et seq.) is amended by adding at
the end the following:
`Subtitle N--Biosecurity
`CHAPTER 1--AGRICULTURE INFRASTRUCTURE SECURITY
`SEC. 1484. DEFINITIONS.
`(1) AGRICULTURAL RESEARCH FACILITY- The term `agricultural research
facility' means a facility--
`(A) at which agricultural research is regularly carried out or
proposed to be carried out; and
`(i)(I) an Agricultural Research Service
facility;
`(II) a Forest Service facility; or
`(III) an Animal and Plant Health Inspection Service
facility;
`(ii) a Federal agricultural facility in the process of being
planned or being constructed; or
`(iii) any other facility under the full control of the
Secretary.
`(2) COMMISSION- The term `Commission' means the Agriculture
Infrastructure Security Commission established under section
1486.
`(2) FUND- The term `Fund' means the Agriculture Infrastructure
Security Fund Account established by section 1485.
`SEC. 1485. AGRICULTURE INFRASTRUCTURE SECURITY FUND.
`(a) ESTABLISHMENT- There is established in the Treasury of the United
States an account, to be known as the `Agriculture Infrastructure Security
Fund Account', consisting of funds appropriated to, or deposited into, the
Fund under subsection (c).
`(b) PURPOSES- The purposes of the Fund are to provide funding to
protect and strengthen the Federal food safety and agricultural infrastructure
that--
`(1) safeguards against animal and plant diseases and
pests;
`(2) ensures the safety of the food supply; and
`(3) ensures sound science in support of food and agricultural
policy.
`(1) IN GENERAL- There are authorized to be appropriated to the Fund
such sums as are necessary for each of fiscal years 2002 through
2006.
`(2) CONTRIBUTIONS AND OTHER PROCEEDS- The Secretary shall deposit
into the Fund any funds received--
`(A) as proceeds from the sale of assets under subsection (e);
or
`(B) as gifts under subsection (f).
`(3) AVAILABILITY OF FUNDS- Amounts in the Fund shall remain
available until expended without further Act of appropriation.
`(4) ADDITIONAL FUNDS- Funds made available under paragraph (1)
shall be in addition to funds otherwise available to the Secretary to
receive gifts and bequests or dispose of property (real, personal, or
intangible).
`(d) EXPENDITURES FROM FUND-
`(1) IN GENERAL- Subject to paragraph (2), on request by the
Secretary, the Secretary of the Treasury shall transfer from the Fund to the
Secretary, and the Secretary shall accept and use without further
appropriation, such amounts as the Secretary determines to be necessary to
pay--
`(A) the costs of planning, design, development, construction,
acquisition, modernization, leasing, and disposal of facilities,
equipment, and technology used by the Department in carrying out programs
relating to the purposes specified in subsection (b), notwithstanding the
Federal Property and Administrative Services Act of 1949 (40 U.S.C. 471 et
seq.) or any other law that prescribes procedures for the procurement,
use, or disposal of property or services by a Federal
agency;
`(B) the costs of specialized services relating to the purposes
specified in subsection (b);
`(C) the costs of cooperative arrangements authorized to be
entered into (notwithstanding chapter 63 of title 31, United States Code)
with State, local and tribal governments, and other public and private
entities, to carry out programs relating to the purposes specified in
subsection (b); and
`(D) administrative costs incurred in carrying out subparagraphs
(A) through (C).
`(A) FEDERAL EMPLOYEES- Amounts in the Fund shall not be used to
create any new full or part-time permanent Federal employee
position.
`(B) ADMINISTRATIVE EXPENSES- Beginning in fiscal year 2003, not
more than 1 percent of the amounts in the Fund on October 1 of a fiscal
year may be used in the fiscal year for administrative expenses of the
Secretary in carrying out the activities described in paragraph
(1).
`(1) DISPOSAL AUTHORITY- Notwithstanding the Federal Property and
Administrative Services Act of 1949 (40 U.S.C. 471 et seq.), the Secretary
by sale may dispose of all or any part of any right or title in land
(excluding National Forest System land), facilities, or equipment in the
full control of the Department used for the purposes specified in subsection
(b).
`(2) DISPOSITION OF PROCEEDS- Proceeds from any sale conducted by
the Secretary under paragraph (1) shall be deposited into the Fund in
accordance with subsection (c)(2)(A).
`(1) IN GENERAL- To carry out the purposes specified in subsection
(b), the Secretary may accept gifts and bequests of funds, property (real,
personal, and intangible), equipment, services, and other in-kind
contributions from State, local, and tribal governments, colleges and
universities, individuals, and other public and private entities.
`(A) IN GENERAL- For the purposes of this subsection, the
Secretary shall not consider a State or local government, Indian tribe (as
defined in section 4 of the Indian Self-Determination and Education
Assistance Act (25 U.S.C. 450b)), other public entity, or college or
university, to be a prohibited source under any Department rule or policy
that prohibits the acceptance of gifts from individuals and entities that
do business with the Department.
`(B) EXCEPTION- Notwithstanding any Department rule or policy that
prohibits the acceptance of gifts by the Department from individuals or
private entities that do business with the Department or that, for any
other reason, are considered to be prohibited sources, the Secretary may
accept gifts under this subsection if the Secretary determines that it is
in the public interest to accept the gift.
`(3) DISPOSITION OF GIFTS- The Secretary shall deposit any gift of
funds under this subsection into the Fund in accordance with subsection
(c)(2)(B).
`SEC. 1486. AGRICULTURE INFRASTRUCTURE SECURITY COMMISSION.
`(a) ESTABLISHMENT- The Secretary shall establish a commission to be
known as the `Agriculture Infrastructure Security Commission' to carry out the
duties described in subsection (f).
`(i) IN GENERAL- The Commission shall be composed of 15 voting
members, appointed by the Secretary in accordance with clause (ii),
based on nominations solicited from the public.
`(ii) QUALIFICATIONS- The Secretary shall appoint members
that--
`(I) represent a balance of the public and private sectors;
and
`(II) have combined expertise in--
`(aa) facilities development, modernization, construction,
security, consolidation, and closure;
`(bb) plant diseases and pests;
`(cc) animal diseases and pests;
`(dd) food safety;
`(ee) biosecurity;
`(ff) the needs of farmers and ranchers;
`(gg) public health;
`(hh) State, local, and tribal government; and
`(ii) any other area related to agriculture infrastructure
security, as determined by the Secretary.
`(B) NONVOTING MEMBERS- The Commission shall be composed of the
following nonvoting members:
`(ii) 4 representatives appointed by the Secretary of Health and
Human Services, 1 each from--
`(I) the Public Health Service;
`(II) the National Institutes of Health;
`(III) the Centers for Disease Control and Prevention;
and
`(IV) the Food and Drug Administration.
`(iii) 1 representative appointed by the Attorney
General.
`(iv) 1 representative appointed by the Director of Homeland
Security.
`(v) Not more than 4 representatives of the Department appointed
by the Secretary.
`(2) DATE OF APPOINTMENT- The appointment of each member of the
Commission shall be made not later than 90 days after the date of enactment
of this subtitle.
`(1) TERM- The term of office of a member of the Commission shall be
4 years, except that the members initially appointed shall be appointed to
serve staggered terms (as determined by the Secretary).
`(2) VACANCIES- A vacancy on the Commission shall be filled in the
same manner as the original appointment was made.
`(1) IN GENERAL- The Commission shall meet at the call
of--
`(B) a majority of the voting members of the Commission;
or
`(2) FEDERAL ADVISORY COMMITTEE ACT-
`(A) IN GENERAL- The Federal Advisory Committee Act (5 U.S.C.
App.) and title XVIII of the Food and Agriculture Act of 1977 (7 U.S.C.
2281 et seq.) shall not apply to the Commission.
`(B) OPEN MEETINGS; RECORDS- Subject to subparagraph
(C)--
`(i) a meeting of the Commission shall be--
`(I) publicly announced in advance; and
`(II) open to the public; and
`(ii) the Commission shall--
`(I) keep detailed minutes of each meeting and other
appropriate records of the activities of the Commission;
and
`(II) make the minutes and records available to the public on
request.
`(C) EXCEPTION- When required in the interest of national
security--
`(i) the Chairperson may choose not to give public notice of a
meeting;
`(ii) the Chairperson may close all or a portion of any meeting
to the public, and the minutes of the meeting, or portion of a meeting,
shall not be made available to the public; and
`(iii) by majority vote, the Commission may redact the minutes
of a meeting that was open to the public.
`(e) CHAIRPERSON- The Secretary shall select a Chairperson from among
the voting members of the Commission.
`(1) IN GENERAL- The Commission shall--
`(A) advise the Secretary on the uses of the Fund;
`(B) review all agricultural research facilities
for--
`(i) research importance; and
`(ii) importance to agriculture infrastructure
security;
`(C) identify any agricultural research facility that should be
closed, realigned, consolidated, or modernized to carry out the research
agenda of the Secretary and protect agriculture infrastructure
security;
`(D) develop recommendations concerning agricultural research
facilities; and
`(E)(i) evaluate the agricultural research facilities acquisition
and modernization system (including acquisitions by gift, grant, or any
other form of agreement) used by the Department; and
`(ii) based on the evaluation, recommend improvements to the
system.
`(2) STRATEGIC PLAN- To assist the Commission in carrying out the
duties described in paragraph (1), the Commission shall use the 10-year
strategic plan prepared by the Strategic Planning Task Force established
under section 4 of the Research Facilities Act (7 U.S.C. 390b).
`(A) IN GENERAL- Not later than 240 days after the date of
enactment of this subtitle, and each June 1 thereafter, the Commission
shall prepare and submit to the Secretary, the Committee on Agriculture
and the Committee on Appropriations of the House of Representatives, and
the Committee on Agriculture, Nutrition, and Forestry and the Committee on
Appropriations of the Senate, a report on the findings and recommendations
under paragraph (1).
`(B) WRITTEN RESPONSE- Not later than 90 days after the date of
receipt of a report from the Commission under subparagraph (A), the
Secretary shall provide to the Commission a written response concerning
the manner and extent to which the Secretary will implement the
recommendations in the report.
`(C) PUBLIC AVAILABILITY-
`(i) IN GENERAL- Subject to clause (ii), the report submitted by
the Commission, and any response made by the Secretary, under this
subsection shall be available to the public.
`(I) NATIONAL SECURITY- The Commission or the Secretary may
determine that any report or response, or any portion of a report or
response, shall not be publicly released in the interest of national
security.
`(II) FREEDOM OF INFORMATION ACT- On such a determination, the
report or response, a portion of the report or response, or any
records relating to the report or response, shall not be released
under section 552 of title 5, United States Code.
`(g) COMMISSION PERSONNEL MATTERS-
`(1) COMPENSATION OF MEMBERS-
`(A) NON-FEDERAL EMPLOYEES- A voting member of the Commission who
is not a regular full-time employee of the Federal Government shall, while
attending meetings of the Commission or otherwise engaged in the business
of the Commission (including travel time), be entitled to receive
compensation at a rate fixed by the Secretary, but not exceeding the daily
equivalent of the annual rate specified at the time of such service under
GS-15 of the General Schedule established under section 5332 of title 5,
United States Code.
`(B) TRAVEL EXPENSES- A voting member of the Commission shall be
allowed travel expenses, including per diem in lieu of subsistence, at
rates authorized for an employee of an agency under subchapter I of
chapter 57 of title 5, United States Code, while away from the home or
regular place of business of the member in the performance of the duties
of the Commission.
`(2) STAFF- The Secretary shall provide the Commission with any
personnel and other resources as the Secretary determines
appropriate.
`(1) AUTHORIZATION OF APPROPRIATIONS- There are authorized to be
appropriated to carry out this section such sums as are necessary for each
of fiscal years 2002 through 2006.
`(2) AGRICULTURE INFRASTRUCTURE SECURITY FUND- For the purpose of
establishing the Commission, the Secretary shall use such sums from the Fund
as the Secretary determines to be appropriate.
`CHAPTER 2--OTHER BIOSECURITY PROGRAMS
`SEC. 1487. SPECIAL AUTHORIZATION FOR BIOSECURITY PLANNING AND
RESPONSE.
`(a) AUTHORIZATION OF APPROPRIATIONS- In addition to amounts for
agricultural research, extension, and education under this Act, there are
authorized to be appropriated for agricultural research, education, and
extension activities for biosecurity planning and response such sums as are
necessary for each of fiscal years 2002 through 2006.
`(b) USE OF FUNDS- Using any authority available to the Secretary, the
Secretary shall use funds made available under this section to carry out
agricultural research, education, and extension activities (including through
competitive grants) necessary--
`(1) to reduce the vulnerability of the United States food and
agricultural system to chemical or biological attack;
`(2) to continue joint research initiatives between the Agricultural
Research Service, universities, and industry on counterbioterrorism efforts
(including continued funding of a consortium in existence on the date of
enactment of this subtitle of which the Agricultural Research Service and
universities are members);
`(3) to make competitive grants to universities and qualified
research institutions for research on counterbioterrorism; and
`(4) to counter or otherwise respond to chemical or biological
attack.
`SEC. 1488. AGRICULTURE BIOTERRORISM RESEARCH FACILITIES.
`(a) DEFINITIONS- In this section:
`(1) CONSTRUCTION- The term `construction' includes--
`(A) the construction of new buildings; and
`(B) the expansion, renovation, remodeling, and alteration of
existing buildings.
`(A) IN GENERAL- The term `cost' means any construction cost,
including architects' fees.
`(B) EXCLUSIONS- The term `cost' does not include the cost
of--
`(i) acquiring land or an interest in land; or
`(ii) constructing any offsite improvement.
`(3) ELIGIBLE ENTITY- The term `eligible entity' means a college or
university that--
`(A) is a land grant college or university (as defined in section
1404 of the National Agricultural Research, Extension, and Teaching Policy
Act of 1977 (7 U.S.C. 3103)); and
`(B) as determined by the Secretary, has--
`(i) demonstrated expertise in the area of animal and plant
diseases;
`(ii) substantial animal and plant diagnostic laboratories;
and
`(iii) well-established working relationships
with--
`(I) the agricultural industry; and
`(II) farm and commodity organizations.
`(b) MODERNIZATION AND CONSTRUCTION OF FACILITIES-
`(1) IN GENERAL- To enhance the security of agriculture in the
United States against threats posed by bioterrorism, the Secretary shall
make construction grants, on a competitive basis, to eligible
entities.
`(2) LIMITATION ON GRANTS- An eligible entity shall not receive
grant funds under this section that, in any fiscal year, exceed
$10,000,000.
`(c) REQUIREMENTS FOR GRANTS-
`(1) IN GENERAL- The Secretary shall make a grant to an eligible
entity under this section only if, with respect to any facility constructed
using grant funds, the eligible entity--
`(A) submits to the Secretary, in such form, in such manner, and
containing such agreements, assurances, and information as the Secretary
may require, an application for the grant;
`(B) is determined by the Secretary to be competent to engage in
the type of research for which the facility is proposed to be
constructed;
`(C) provides such assurances as the Secretary determines to be
satisfactory that--
`(i) for not less than 20 years after the date of completion of
the facility, the facility shall be used for the purposes of the
research for which the facility was constructed, as described in the
grant application;
`(ii) sufficient funds are available to pay the non-Federal
share of the cost of constructing the facility;
`(iii) sufficient funds will be available, as of the date of
completion of the construction, for the effective use of the facility
for the purposes of the research for which the facility was constructed;
and
`(iv) the proposed construction--
`(I) will increase the capability of the eligible entity to
conduct research for which the facility was constructed;
or
`(II) is necessary to improve or maintain the quality of the
research of the eligible entity;
`(D) meets such reasonable qualifications as may be established by
the Secretary with respect to--
`(i) the relative scientific and technical merit of the
applications, and the relative effectiveness of facilities proposed to
be constructed, in expanding the quality of, and the capacity of
eligible entities to carry out, biosecurity research;
`(ii) the quality of the research to be carried out in each
facility constructed;
`(iii) the need for the research activities to be carried out
within the facility as those activities relate to research needs of the
United States in securing, and ensuring the safety of, the food supply
of the United States;
`(iv) the age and condition of existing research facilities of
the eligible entity; and
`(v) biosafety and biosecurity requirements necessary to protect
facility staff, members of the public, and the food supply;
and
`(E) has demonstrated a commitment to enhancing and expanding the
research productivity of the eligible entity.
`(2) PRIORITY- In providing grants under this section, the Secretary
shall give priority to an eligible entity that, as determined by the
Secretary, has demonstrated expertise in--
`(A) animal and plant disease prevention;
`(B) pathogen and toxin mitigation;
`(C) cereal disease resistance;
`(D) grain milling and processing;
`(E) livestock production practices;
`(F) vaccine development;
`(H) pathogen detection and control; or
`(d) AMOUNT OF GRANT- The amount of a grant awarded under this section
shall be determined by the Secretary.
`(e) FEDERAL SHARE- The Federal share of the cost of any construction
carried out using funds from a grant provided under this section shall not
exceed 50 percent.
`(f) GUIDELINES- Not later than 180 days after the date of enactment
of this subtitle, the Secretary shall issue guidelines with respect to the
provision of grants under this section.
`(g) AUTHORIZATION OF APPROPRIATIONS- There is authorized to be
appropriated to carry out this section $100,000,000 for each of fiscal years
2003 through 2005.'.
(b) SENSE OF CONGRESS ON INCREASING CAPACITY FOR RESEARCH ON
BIOSECURITY AND ANIMAL AND PLANT HEALTH DISEASES- It is the sense of Congress
that funding for the Agricultural Research Service, the Animal and Plant
Health Inspection Service, and other agencies of the Department of Agriculture
with responsibilities for biosecurity should be increased as necessary to
improve the capacity of the agencies to conduct research and analysis of, and
respond to, bioterrorism and animal and plant diseases.
Subtitle B--Food, Agriculture, Conservation, and Trade Act of
1990
SEC. 731. NATIONAL GENETIC RESOURCES PROGRAM.
Section 1635(b) of the Food, Agriculture, Conservation, and Trade Act
of 1990 (7 U.S.C. 5844(b)) is amended by striking `2002' and inserting
`2006'.
SEC. 732. BIOTECHNOLOGY RISK ASSESSMENT RESEARCH.
Section 1668 of the Food, Agriculture, Conservation, and Trade Act of
1990 (7 U.S.C. 5921) is amended--
(1) by redesignating subsections (e) through (g) as subsections (f)
through (h), respectively;
(2) by inserting after subsection (d) the following:
`(e) GRANT PRIORITY- In selecting projects for which grants shall be
made under this section, the Secretary shall give priority to public and
private research or educational institutions and organizations the goals of
which include--
`(1) formation of interdisciplinary teams to review or conduct
research on the environmental effects of the release of new genetically
modified agricultural products;
`(2) conduct of studies relating to biosafety of genetically
modified agricultural products;
`(3) evaluation of the cost and benefit for development of an
identity preservation system for genetically modified agricultural
products;
`(4) establishment of international partnerships for research and
education on biosafety issues; or
`(5) formation of interdisciplinary teams to renew and conduct
research on the nutritional enhancement and environmental benefits of
genetically modified agricultural products.'; and
(3) in subsection (h) (as redesignated by paragraph (1)), by
striking paragraph (2) and inserting the following:
`(2) WITHHOLDING OF OUTLAYS FOR RESEARCH ON BIOTECHNOLOGY RISK
ASSESSMENT- Of the amounts of outlays made under this section or any other
provision of law to carry out research on biotechnology (as defined and
determined by the Secretary of Agriculture) for any fiscal year, the
Secretary of Agriculture shall withhold at least 3 percent for grants for
research on biotechnology risk assessment on all categories identified by
the Secretary of Agriculture as biotechnology.'.
SEC. 733. RURAL ELECTRONIC COMMERCE EXTENSION PROGRAM.
(a) FINDINGS- Congress finds that--
(1) electronic commerce sales in 1998 were approximately
$100,000,000,000 and are expected to reach $1,300,000,000,000 by
2003;
(2) electronic commerce presents an enormous opportunity and
challenge for small businesses, especially businesses in rural
areas;
(3) while infrastructure for electronic commerce is growing rapidly
in rural areas, small businesses will not be able to take advantage of the
new technology without assistance;
(4) while electronic commerce will give businesses new markets and
new ways of doing business, many small businesses in rural areas will have
difficulty adopting appropriate electronic commerce business practices and
technologies;
(5) the United States has an interest in ensuring that small
businesses in rural areas participate in electronic commerce, to encourage
success of the businesses, and to promote productivity and economic growth
throughout the economy of the United States; and
(6) an electronic commerce extension program should be established
using the nationwide county-based infrastructure within the Cooperative
Extension Service to help small businesses throughout the United States to
identify, adapt, adopt, and use electronic commerce business practices and
technologies.
(b) PURPOSE- The purpose of this section is to establish within the
Cooperative State Research, Education, and Extension Service of the Department
of Agriculture a rural electronic commerce extension program for small
businesses and microenterprises in rural areas of the United States.
(c) PROGRAM- Subtitle H of title XVI of the Food, Agriculture,
Conservation, and Trade Act of 1990 (7 U.S.C. 5921 et seq.) is amended by
adding after section 1669 the following:
`SEC. 1670. RURAL ELECTRONIC COMMERCE EXTENSION PROGRAM.
`(a) DEFINITIONS- In this section:
`(1) DEVELOPMENT CENTER- The term `development center'
means--
`(A) the North Central Regional Center for Rural
Development;
`(B) the Northeast Regional Center for Rural Development or its
designee;
`(C) the Southern Rural Development Center; and
`(D) the Western Rural Development Center or its
designee.
`(2) EXTENSION PROGRAM- The term `extension program' means the rural
electronic commerce extension program established under subsection
(b).
`(3) MICROENTERPRISE- The term `microenterprise' means a commercial
enterprise that has 5 or fewer employees, 1 or more of whom owns the
enterprise.
`(4) SECRETARY- The term `Secretary' means the Secretary of
Agriculture, acting through the Administrator of the Cooperative State
Research, Education, and Extension Service.
`(5) SMALL BUSINESS- The term `small business' has the meaning given
the term `small-business concern' by section 3(a) of the Small Business Act
(15 U.S.C. 632(a)).
`(b) ESTABLISHMENT- The Secretary shall establish a rural electronic
commerce extension program to--
`(1) expand and enhance electronic commerce practices and technology
to be used by small businesses and microenterprises in rural
areas;
`(2) disseminate information and expertise through a cooperative
extension service clearinghouse system in rural areas;
`(3) disseminate management, scientific, engineering, and technical
information to small businesses in rural areas through the extension
program; and
`(4) use, when appropriate, the expertise, technology, and
capabilities of other institutions and organizations, including--
`(A) State and local governments;
`(B) Federal departments and agencies;
`(C) institutions of higher education;
`(D) nonprofit organizations;
`(E) small businesses and microenterprises that have experience in
electronic commerce practice and technology; and
`(F) the development centers.
`(1) IN GENERAL- In carrying out this section, the Secretary
shall--
`(A) provide leadership, support, and coordination for the
extension programs;
`(B) establish policies, practices, and procedures to assist rural
communities in the adoption and use of electronic commerce
techniques;
`(C) identify and strengthen existing mechanisms designed to
assist rural areas in the adoption and use of electronic commerce
techniques;
`(D) provide grants to fund projects and activities under the
extension program; and
`(E) establish a clearinghouse system for States, communities, and
businesses to obtain information on best practices, technology transfer,
training, education, adoption, and use of electronic commerce in rural
areas.
`(2) OFFICE OF RURAL ELECTRONIC COMMERCE- The Secretary shall
establish, in the Cooperative State Research, Education, and Extension
Service, an Office of Rural Electronic Commerce to assist in carrying out
this section.
`(1) IN GENERAL- The Secretary shall carry out a program under
which--
`(A) funds are distributed to each of the development centers
to--
`(i) assemble regional expertise, and develop innovative
education programs, that may be adapted and refined by State extension
programs;
`(ii) train State-based cooperative extension agents to deliver
rural electronic commerce education programs; and
`(iii) establish networks among universities, local governments,
and private industries to focus on regional economic issues;
and
`(B) competitive grants are made to cooperative extension service
programs at land-grant colleges and universities (or consortia of
land-grant colleges and universities)--
`(i) to develop and facilitate nationally innovative rural
electronic commerce business strategies; and
`(ii) to assist small businesses and microenterprises in
identifying, adapting, implementing, and using electronic commerce
business practices and technologies.
`(i) IN GENERAL- The Secretary, shall--
`(I) establish criteria for the submission, evaluation, and
funding of applications for grants to carry out projects and
activities under the extension program; and
`(II) evaluate, rank, and select grant applications described
in subclause (I) on the basis of the selection
criteria.
`(ii) FACTORS- The selection criteria established under clause
(i) shall include--
`(I) the ability of an applicant to provide training and
education on best practices, technology transfer, adoption, and use of
electronic commerce in rural communities by small business and
microenterprise;
`(II) the quality of the service to be provided by a proposed
project or activity under the extension program;
`(III) the extent and geographic diversity of the area served
by the proposed project or activity under the extension
program;
`(IV) the extent of participation of land-grant colleges and
universities in the extension program (including any economic benefits
that would result from that participation);
`(V) the percentage of funding and in-kind commitments from
non-Federal sources that would be needed by and available for a
proposed project or activity under the extension program;
and
`(VI) the extent of participation of low-income and minority
businesses or microenterprises in a proposed project or activity under
the extension program.
`(B) APPLICATION- As a condition of being considered for the
receipt of funds under this section, an applicant shall submit to the
Secretary an application that meets the criteria established under
subparagraph (A)(i)(I).
`(i) IN GENERAL- As a condition of the receipt of funds under
this section, an applicant shall agree to obtain from non-Federal
sources (including State, local, nonprofit, or private sector sources)
contributions of--
`(I) except as provided in clause (iii), during each of the
years in which the extension program receives funding under subsection
(g), 50 percent of the estimated capital and annual operating and
maintenance costs of the extension program; and
`(II) after expiration of the initial funding period specified
in subclause (I), 100 percent of the estimated capital and annual
operating and maintenance costs of the extension
program.
`(ii) FORM- The non-Federal share required under clause (i)(I)
may be provided in the form of in-kind contributions.
`(iii) EXCEPTION- The non-Federal share required under clause
(i)(I) may be reduced to 25 percent of the estimated capital and annual
operating and maintenance costs of the extension program if the grant
recipient serves low-income or minority-owned businesses or
microenterprises, as determined by the Secretary.
`(3) LIMITATION ON AMOUNT OF FUNDS AWARDED-
`(A) INDIVIDUAL LAND-GRANT COLLEGES AND UNIVERSITIES- A land-grant
college or university shall not receive funds under this section in an
amount that exceeds $900,000.
`(B) CONSORTIA OF LAND-GRANT COLLEGES AND UNIVERSITIES- With
respect to a consortium of land-grant colleges and universities that
receives funds under this section--
`(i) the total amount of the funds awarded to the consortium
shall not exceed the product obtained by multiplying--
`(II) the number of land-grant colleges and universities
comprising the consortium; and
`(ii) each land-grant college or university that is a member of
the consortium shall receive an equal percentage of the total amount of
funds awarded.
`(4) SELECTION- At least once every 180 days, the Secretary shall
evaluate, prioritize, and fund applications for proposed projects and
activities under the extension program using the criteria established under
paragraph (2)(A)(i)(I).
`(1) IN GENERAL- Not later than 1 year after a project or activity
under the extension program is funded by a grant under this section, the
evaluation panel established under paragraph (2)(A) shall evaluate the
project or activity.
`(A) IN GENERAL- Not later than 30 days after the date of
enactment of this section, the Secretary shall establish an evaluation
panel to--
`(i) establish criteria for evaluating projects and activities
under the extension program; and
`(ii) using the criteria established under clause (i), evaluate
the projects and activities.
`(B) COMPOSITION- The evaluation panel shall be composed
of--
`(i) appropriate Federal, State, local government, and
land-grant college or university officials, as determined by the
Secretary; and
`(ii) private individuals with expertise in electronic commerce,
technology, or small business, as determined by the
Secretary.
`(3) CRITERIA- The evaluation panel shall evaluate projects and
activities under the extension program using criteria established by the
Secretary that assess the efficiency and efficacy of the extension
program.
`(4) ASSISTANCE FROM GRANT RECIPIENTS- A recipient of a grant under
this section shall, to the maximum extent practicable, provide to the
evaluation panel such materials as the evaluation panel may request to
assist in the evaluation of any project or activity carried out by the
recipient under the extension program.
`(f) REPORT- Not later than 2 years after the date of enactment of
this section, the Secretary shall submit to the Committee on Agriculture of
the House of Representatives and the Committee on Agriculture, Nutrition, and
Forestry of the Senate a report that describes--
`(1) the policies, practices, and procedures used to assist rural
communities in efforts to adopt and use electronic commerce
techniques;
`(2) the clearinghouse system for States, communities, small
businesses, and individuals established to obtain information regarding best
practices, technology transfer, training, education, adoption, and use of
electronic commerce in rural areas; and
`(3) the criteria used for the submission, evaluation, and funding
of projects and activities under the extension program.
`(g) AUTHORIZATION OF APPROPRIATIONS-
`(1) IN GENERAL- There is authorized to be appropriated to carry out
this section $60,000,000 for each of fiscal years 2002 through 2006, of
which $20,000,000 for each fiscal year shall be made available to carry out
activities under subsection (d)(1)(A).
`(2) ADMINISTRATIVE COSTS- The Secretary may use not more than 2
percent of the funds made available under paragraph (1) to pay
administrative costs incurred in carrying out this section.'.
SEC. 734. HIGH-PRIORITY RESEARCH AND EXTENSION INITIATIVES.
Section 1672 of the Food, Agriculture, Conservation, and Trade Act of
1990 (7 U.S.C. 5925) is amended
(1) in subsection (e), by adding at the end the
following:
`(25) ANIMAL INFECTIOUS DISEASES RESEARCH AND EXTENSION-
`(A) IN GENERAL- Research and extension grants may be made under
this section for the purpose of developing--
`(i) prevention and control methodologies for animal infectious
diseases that impact trade, including vesicular stomatitis, bovine
tuberculosis, transmissible spongiform encephalopathy, brucellosis, and
E. coli 0157:H7 infection;
`(ii) laboratory tests for quicker detection of infected animals
and presence of diseases among herds;
`(iii) prevention strategies, including vaccination programs;
and
`(iv) rapid diagnostic techniques for animal disease agents
considered to be risks for agricultural bioterrorism attack, including
evaluation of the techniques.
`(B) COLLABORATION- Research under subparagraph (A) may be
conducted in collaboration with scientists from the Department, other
Federal agencies, universities, and industry.
`(C) EVALUATION OF DIAGNOSTIC TECHNIQUES AND VACCINES- Any
research on or evaluation of diagnostic techniques and vaccines under
subparagraph (A) shall include evaluation of diagnostic techniques and
vaccines under field conditions in countries in which the animal disease
occurs.
`(26) PROGRAM TO COMBAT CHILDHOOD OBESITY- Research and extension
grants may be made under this section to institutions of higher education
with demonstrated capacity in basic and clinical obesity research, nutrition
research, and community health education research to develop and evaluate
community-wide strategies that catalyze partnerships between families and
health care, education, recreation, mass media, and other community
resources to reduce the incidence of childhood obesity.
`(27) INTEGRATED PEST MANAGEMENT- Research and extension grants may
be made under this section to land grant colleges and universities, other
Federal agencies, and other interested persons to coordinate and improve
research, education, and outreach on, and implementation on farms of,
integrated pest management.
`(28) BEEF CATTLE GENETICS-
`(A) IN GENERAL- Research and extension grants for beef cattle
genetics evaluation research may be made under this section to
institutions of higher education, or consortia of institutions of higher
education, that--
`(i) have expertise in beef cattle genetic evaluation research
and technology; and
`(ii) have been actively involved, for at least 20 years, in the
estimation and prediction of progeny differences for publication and use
by seed stock producer breed associations.
`(B) PRIORITY- In making grants under subparagraph (A), the
Secretary shall give priority to proposals to--
`(i) establish and coordinate priorities for genetic evaluation
of domestic beef cattle;
`(ii) consolidate research efforts to reduce duplication of
effort and maximize the return to beef industry;
`(iii) streamline the process between the development and
adoption of new genetic evaluation methodologies by the
industry;
`(iv) identify new traits and technologies for inclusion in
genetic programs in order to--
`(I) reduce the costs of beef production;
and
`(II) provide consumers with a high nutritional value,
healthy, and affordable protein source; or
`(v) create decisionmaking tools that incorporate the increasing
number of traits being evaluated and the increasing amount of
information from DNA technology into genetic improvement programs, with
the goal of optimizing the overall efficiency, product quality and
safety, and health of the domestic beef cattle herd
resource.
`(29) DAIRY PIPELINE CLEANERS- Research and extension grants may be
made under this section for the purpose of preventing and eliminating the
dangers of dairy pipeline cleaner, including--
`(A) developing safer packaging mechanisms and a new transfer
mechanism, including a new pumping mechanism for dairy pipeline
cleaner;
`(i) the accident history for dairy pipeline
cleaner;
`(ii) the causes of accidents involving dairy pipeline cleaner;
and
`(iii) potential means of prevention of such accidents,
including improved labeling and pump structure; and
`(C) other means of improving efforts to prevent ingestion of
dairy pipeline cleaner.
`(30) DEVELOPMENT OF PUBLICLY HELD PLANTS AND ANIMAL VARIETIES;
GENETIC RESOURCE CONSERVATION ACTIVITIES- Research and extension grants may
be made under this section to colleges and universities, other Federal
agencies, plant breeders, and other interested persons for the purpose
of--
`(A) development of publicly held plants and animal varieties
(including germplasm for identity-preserved markets); and
`(B) genetic resource conservation activities.'; and
(2) in subsection (h), by striking `2002' and inserting `2006', of
which not less than $100,000 for each of fiscal years 2002 through 2006
shall be used to carry out subsection (e)(29).
SEC. 735. NUTRIENT MANAGEMENT RESEARCH AND EXTENSION
INITIATIVE.
Section 1672A(g) of the Food, Agriculture, Conservation, and Trade Act
of 1990 (7 U.S.C. 5925a(g)) is amended by striking `2002' and inserting
`2006'.
SEC. 736. ORGANIC AGRICULTURE RESEARCH AND EXTENSION
INITIATIVE.
Section 1672B of the Food, Agriculture, Conservation, and Trade Act of
1990 (7 U.S.C. 5925b) is amended--
(A) by inserting after `Board,' the following: `and the National
Organic Standards Board,';
(B) in paragraph (2), by striking `and' at the end;
(C) in paragraph (3), by striking the period at the end and
inserting a semicolon; and
(D) by adding at the end the following:
`(4) determining desirable traits for organic commodities using
advanced genomics, field trials, and other methods;
`(5) pursuing classical and marker-assisted breeding for publicly
held varieties of crops and animals optimized for organic
systems;
`(6) identifying marketing and policy constraints on the expansion
of organic agriculture; and
`(7) conducting advanced on-farm research and development that
emphasizes observation of, experimentation with, and innovation for working
organic farms, including research relating to production and marketing and
to socioeconomic conditions.'; and
(2) in subsection (e), by striking `2002' and inserting
`2006'.
SEC. 737. AGRICULTURAL TELECOMMUNICATIONS PROGRAM.
Section 1673(h) of the Food, Agriculture, Conservation, and Trade Act
of 1990 (7 U.S.C. 5926(h)) is amended by striking `2002' and inserting
`2006'.
SEC. 738. ASSISTIVE TECHNOLOGY PROGRAM FOR FARMERS WITH
DISABILITIES.
Section 1680(c)(1) of the Food, Agriculture, Conservation, and Trade
Act of 1990 (7 U.S.C. 5933(c)(1)) is amended by striking `2002' and inserting
`2006'.
Subtitle C--Agricultural Research, Extension, and Education Reform
Act of 1998
SEC. 741. INITIATIVE FOR FUTURE AGRICULTURE AND FOOD SYSTEMS.
Section 401 of the Agricultural Research, Extension, and Education
Reform Act of 1998 (7 U.S.C. 7621) is amended--
(1) by striking subsection (b) and inserting the
following:
`(1) IN GENERAL- Out of any funds in the Treasury not otherwise
appropriated, the Secretary of the Treasury shall transfer to the Account to
carry out this section--
`(A) on October 1, 1998 and each October 1 thereafter through
October 1, 2001, $120,000,000; and
`(B) on October 1, 2002, and each October 1 thereafter through
October 1, 2005, $145,000,000.
`(2) RECEIPT AND ACCEPTANCE- The Secretary shall be entitled to
receive, shall accept, and shall use to carry out this section the funds
transferred under paragraph (1), without further appropriation.';
and
(2) in subsection (e), by adding at the end the
following:
`(3) MINORITY-SERVING INSTITUTIONS- The Secretary shall consider
reserving, to the maximum extent practicable, 10 percent of the funds made
available to carry out this section for a fiscal year for grants to
minority-serving institutions.'.
SEC. 742. PARTNERSHIPS FOR HIGH-VALUE AGRICULTURAL PRODUCT QUALITY
RESEARCH.
Section 402(g) of the Agricultural Research, Extension, and Education
Reform Act of 1998 (7 U.S.C. 7622(g)) is amended by striking `2002' and
inserting `2006'.
SEC. 743. PRECISION AGRICULTURE.
Section 403 of the Agricultural Research, Extension, and Education
Reform Act of 1998 (7 U.S.C. 7623) is amended--
(i) in subparagraph (A), inserting `or horticultural' following
`agronomic'; and
(ii) in subparagraph (C), by striking `or' at the
end;
(iii) in subparagraph (D), by striking the period at the end and
inserting `; or'; and
(iv) by adding at the end the following:
`(E) using such information to enable intelligent mechanized
harvesting and sorting systems for horticultural crops.';
(i) in subparagraph (C), by striking `or' at the
end;
(ii) in subparagraph (D), by striking the period at the end and
inserting `; or'; and
(iii) by adding at the end the following:
`(E) robotic and other intelligent machines for use in
horticultural cropping systems.'; and
(C) in paragraph (5)(F), by inserting `(including improved use of
energy inputs)' after `farm production efficiencies';
(2) in subsection (c)(2)--
(A) by inserting `or horticultural' after `agronomic';
and
(B) by striking `and meteorological variability' and inserting
`product variability, and meteorological variability';
(A) by redesignating paragraphs (4) and (5) as paragraphs (5) and
(6), respectively; and
(B) by inserting after paragraph (3) the following:
`(4) Improve farm energy use efficiencies.'; and
(4) in subsection (i)(1), by striking `2002' and inserting
`2006'.
SEC. 744. BIOBASED PRODUCTS.
Section 404 of the Agricultural Research, Extension, and Education
Reform Act of 1998 (7 U.S.C. 7624) is amended--
(1) in subsection (e)(2), by striking `2001' and inserting `2006';
and
(2) in subsection (h), by striking `2002' and inserting
`2006'.
SEC. 745. THOMAS JEFFERSON INITIATIVE FOR CROP
DIVERSIFICATION.
Section 405(h) of the Agricultural Research, Extension, and Education
Reform Act of 1998 (7 U.S.C. 7625(h)) is amended by striking `2002' and
inserting `2006'.
SEC. 746. INTEGRATED RESEARCH, EDUCATION, AND EXTENSION COMPETITIVE
GRANTS PROGRAM.
Section 406 of the Agricultural Research, Extension, and Education
Reform Act of 1998 (7 U.S.C. 7626) is amended--
(1) by redesignating subsection (e) as subsection (f);
(2) by inserting after subsection (d) the following:
`(e) TERM OF GRANT- A grant under this section shall have a term of
not more than 5 years.'; and
(3) in subsection (f) (as so redesignated), by striking `2002' and
inserting `2006'.
SEC. 747. SUPPORT FOR RESEARCH REGARDING DISEASES OF WHEAT AND BARLEY
CAUSED BY FUSARIUM GRAMINEARUM.
Section 408(e) of the Agricultural Research, Extension, and Education
Reform Act of 1998 (7 U.S.C. 7628(e)) is amended by striking `2002' and
inserting `2006'.
SEC. 748. BOVINE JOHNE'S DISEASE CONTROL PROGRAM.
Title IV of the Agricultural Research, Extension, and Education Reform
Act of 1998 (7 U.S.C. 7621 et seq.) is amended by adding at the end the
following:
`SEC. 409. BOVINE JOHNE'S DISEASE CONTROL PROGRAM.
`(a) ESTABLISHMENT- The Secretary, in coordination with State
veterinarians and other appropriate State animal health professionals, may
establish a program to conduct research, testing, and evaluation of programs
for the control and management of Johne's disease in livestock.
`(b) AUTHORIZATION OF APPROPRIATIONS- There are authorized to be
appropriated to carry out this section such sums as are necessary for each of
fiscal years 2002 through 2006.'.
SEC. 749. GRANTS FOR YOUTH ORGANIZATIONS.
Title IV of the Agricultural Research, Extension, and Education Reform
Act of 1998 (7 U.S.C. 7621 et seq.) (as amended by section 748) is amended by
adding at the end the following:
`SEC. 410. GRANTS FOR YOUTH ORGANIZATIONS.
`(a) IN GENERAL- The Secretary, acting through the Administrator of
the Cooperative State Research, Education, and Extension Service, shall make
grants to the Girl Scouts of the United States of America, the Boy Scouts of
America, the National 4-H Council, and the National FFA Organization to
establish pilot projects to expand the programs carried out by the
organizations in rural areas and small towns (including, with respect to the
National 4-H Council, activities provided for in Public Law 107-19 (115 Stat.
153)).
`(b) FUNDING- Of the funds of the Commodity Credit Corporation, the
Secretary shall make available $8,000,000 for fiscal year 2002, which shall
remain available until expended.
`(c) AUTHORIZATION OF APPROPRIATIONS- There is authorized to be
appropriated to carry out this section such sums as are necessary for each of
fiscal years 2003 through 2006.'.
SEC. 750. AGRICULTURAL BIOTECHNOLOGY RESEARCH AND DEVELOPMENT FOR
DEVELOPING COUNTRIES.
Title IV of the Agricultural Research, Extension, and Education Reform
Act of 1998 (7 U.S.C. 7621 et seq.) (as amended by section 749) is amended by
adding at the end the following:
`SEC. 411. AGRICULTURAL BIOTECHNOLOGY RESEARCH AND DEVELOPMENT FOR
DEVELOPING COUNTRIES.
`(a) DEFINITIONS- In this section:
`(1) ELIGIBLE ENTITY- The term `eligible entity' means--
`(A) an institution of higher education;
`(B) a nonprofit organization; or
`(C) a consortium of for-profit institutions and agricultural
research institutions.
`(2) INSTITUTION OF HIGHER EDUCATION- The term `institution of
higher education' means--
`(A) a historically black land-grant college or
university;
`(B) a Hispanic-serving institution (as defined in section 1404 of
the National, Agricultural Research, Extension, and Teaching Policy Act of
1977 (7 U.S.C. 3103)); or
`(C) a tribal college or university that offers a curriculum in
agriculture or the biosciences.
`(1) IN GENERAL- The Secretary (acting through the Foreign
Agricultural Service) shall establish and administer a program to make
competitive grants to eligible entities to develop agricultural
biotechnology for developing countries.
`(2) USE OF FUNDS- Funds provided to an eligible entity under this
section may be used for projects that use biotechnology to--
`(A) enhance the nutritional content of agricultural products that
can be grown in developing countries;
`(B) increase the yield and safety of agricultural products that
can be grown in developing countries;
`(C) increase the yield of agricultural products that are drought-
and stress-resistant and that can be grown in developing
countries;
`(D) extend the growing range of crops that can be grown in
developing countries;
`(E) enhance the shelf-life of fruits and vegetables grown in
developing countries;
`(F) develop environmentally sustainable agricultural products
that can be grown in developing countries; and
`(G) develop vaccines to immunize against life-threatening
illnesses and other medications that can be administered by consuming
genetically-engineered agricultural products.
`(c) AUTHORIZATION OF APPROPRIATIONS- There is authorized to be
appropriated to carry out this section $5,000,000 for each of fiscal years
2002 through 2006.'.
SEC. 750A. OFFICE OF PEST MANAGEMENT POLICY.
Section 614(f) of the Agricultural Research, Extension, and Education
Reform Act of 1998 (7 U.S.C. 7653(f)) is amended by striking `2002' and
inserting `2006'.
SEC. 750B. SENIOR SCIENTIFIC RESEARCH SERVICE.
Subtitle B of title VI of the Agricultural Research, Extension, and
Education Reform Act of 1998 (7 U.S.C. 7651 et seq.) is amended by adding at
the end the following:
`SEC. 620. SENIOR SCIENTIFIC RESEARCH SERVICE.
`(a) IN GENERAL- There is established in the Department of Agriculture
the Senior Scientific Research Service (referred to in this section as the
`Service').
`(1) IN GENERAL- Subject to paragraphs (2) through (4), the
Secretary shall appoint the members of the Service.
`(2) QUALIFICATIONS- To be eligible for appointment to the Service,
an individual shall--
`(A) have conducted outstanding research in the field of
agriculture or forestry;
`(B) have earned a doctoral level degree at an institution of
higher education (as defined in section 101 of the Higher Education Act of
1965 (20 U.S.C. 1001)); and
`(C) meet qualification standards prescribed by the Director of
the Office of Personnel Management for appointment to a position at level
GS-15 of the General Schedule.
`(3) NUMBER- Not more than 100 individuals may serve as members of
the Service at any 1 time.
`(A) IN GENERAL- Subject to subparagraph (B) and subsection
(d)(2), the Secretary may appoint and employ a member of the Service
without regard to--
`(i) the provisions of title 5, United States Code, governing
appointments in the competitive service;
`(ii) the provisions of subchapter I of chapter 35 of title 5,
United States Code, relating to retention preference;
`(iii) the provisions of chapter 43 of title 5, United States
Code, relating to performance appraisal and performance
actions;
`(iv) 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; and
`(v) the provisions of chapter 75 of title 5, United States
Code, relating to adverse actions.
`(B) EXCEPTION- A member of the Service appointed and employed by
the Secretary under subparagraph (A) shall have the same right of appeal
to the Merit Systems Protection Board and the same right to file a
complaint with the Office of Special Counsel as an employee appointed to a
position at level GS-15 of the General Schedule.
`(c) PERFORMANCE APPRAISAL SYSTEM- The Secretary shall develop a
performance appraisal system for members of the Service that is designed
to--
`(1) provide for the systematic appraisal of the employment
performance of the members; and
`(2) encourage excellence in employment performance by the
members.
`(1) IN GENERAL- Subject to paragraph (2), the Secretary shall
determine the compensation of members of the Service.
`(2) LIMITATIONS- The rate of pay for a member of the Service
shall--
`(A) not be less than the minimum rate payable for a position at
level GS-15 of the General Schedule; and
`(B) not be more than the rate payable for a position at level I
of the Executive Schedule, unless the rate is approved by the President
under section 5377(d)(2) of title 5, United States Code.
`(e) RETIREMENT CONTRIBUTIONS-
`(1) IN GENERAL- On the request of a member of the Service who was
an employee of an institution of higher education (as defined in section 101
of the Higher Education Act of 1965 (20 U.S.C. 1001)) immediately prior to
appointment as a member of the Service and who retains the right to continue
to make contributions to the retirement system of the institution, the
Secretary may contribute an amount not to exceed 10 percent of the basic pay
of the member to the retirement system of the institution on behalf of the
member.
`(2) FEDERAL RETIREMENT SYSTEM-
`(A) IN GENERAL- Subject to subparagraph (B), a member for whom a
contribution is made under paragraph (1) shall not, as a result of serving
as a member of the Service, be covered by, or earn service credit under,
chapter 83 or 84 of title 5, United States Code.
`(B) ANNUAL LEAVE- Service of a member of the Service described in
subparagraph (A) shall be creditable for determining years of service
under section 6303(a) of title 5, United States Code.
`(f) INVOLUNTARY SEPARATION-
`(1) IN GENERAL- Subject to paragraph (2) and notwithstanding the
provisions of title 5, United States Code, governing appointment in the
competitive service, in the case of an individual who is separated from the
Service involuntarily and without cause--
`(A) the Secretary may appoint the individual to a position in the
competitive civil service at level GS-15 of the General Schedule;
and
`(B) the appointment shall be a career appointment.
`(2) EXCEPTED CIVIL SERVICE- In the case of an individual described
in paragraph (1) who immediately prior to appointment as a member of the
Service was not a career appointee in the civil service or the Senior
Executive Service, the appointment of the individual under paragraph
(1)--
`(A) shall be to the excepted civil service; and
`(B) may not exceed a period of 2 years.'.
Subtitle D--Land-Grant Funding
CHAPTER 1--1862 INSTITUTIONS
SEC. 751. CARRYOVER.
Section 7 of the Hatch Act of 1887 (7 U.S.C. 361g) is amended by
striking subsection (c) and inserting the following:
`(1) IN GENERAL- The balance of any annual funds provided under this
Act to a State agricultural experiment station for a fiscal year that
remains unexpended at the end of the fiscal year may be carried over for use
during the following fiscal year.
`(2) FAILURE TO EXPEND FULL ALLOTMENT- If any unexpended balance
carried over by a State is not expended by the end of the second fiscal
year, an amount equal to the unexpended balance shall be deducted from the
next succeeding annual allotment to the State.'.
SEC. 752. REPORTING OF TECHNOLOGY TRANSFER ACTIVITIES.
Section 7(e) of the Hatch Act of 1887 (7 U.S.C. 361g(e)) is amended by
adding at the end the following:
`(5) The technology transfer activities conducted with respect to
federally-funded agricultural research.'.
SEC. 753. COMPLIANCE WITH MULTISTATE AND INTEGRATION
REQUIREMENTS.
(a) MULTISTATE COOPERATIVE EXTENSION ACTIVITIES- Section 3 of the
Smith-Lever Act (7 U.S.C. 343) is amended by striking subsection (h) and
inserting the following:
`(h) MULTISTATE COOPERATIVE EXTENSION ACTIVITIES-
`(1) DEFINITION OF MULTISTATE ACTIVITY- In this subsection, the term
`multistate activity' means a cooperative extension activity in which 2 or
more States cooperate to resolve problems that concern more than 1
State.
`(A) IN GENERAL- To receive funding under subsections (b) and (c)
for a fiscal year, a State must have expended on multistate activities, in
the preceding fiscal year, an amount equivalent to not less than 25
percent of the funds paid to the State under subsections (b) and (c) for
the preceding fiscal year.
`(B) DETERMINATION OF AMOUNT- In determining compliance with
subparagraph (A), the Secretary shall include all cooperative extension
funds expended by the State in the preceding fiscal year, including
Federal, State, and local funds.
`(3) REDUCTION OF PERCENTAGE- The Secretary may reduce the minimum
percentage required to be expended for multistate activities under paragraph
(2) by a State in a case of hardship, unfeasibility, or other similar
circumstances beyond the control of the State, as determined by the
Secretary.
`(4) PLAN OF WORK- The State shall include in the plan of work of
the State required under section 4 a description of the manner in which the
State will meet the requirements of this subsection.
`(5) APPLICABILITY- This subsection does not apply to funds
provided--
`(A) to a 1994 Institution (as defined in section 532 of the
Equity in Educational Land-Grant Status Act of 1994 (7 U.S.C. 301 note;
Public Law 103-382)); or
`(B) to the Commonwealth of Puerto Rico, the Virgin Islands, or
Guam.'.
(b) INTEGRATED RESEARCH AND EXTENSION ACTIVITIES- Section 3 of the
Hatch Act of 1887 (7 U.S.C. 361c) is amended by striking subsection (i) and
inserting the following:
`(i) INTEGRATED RESEARCH AND EXTENSION ACTIVITIES-
`(A) REQUIREMENT- To receive funding under this Act and
subsections (b) and (c) of section 3 of the Smith-Lever Act (7 U.S.C. 343)
for a fiscal year, a State must have expended on activities that integrate
cooperative research and extension (referred to in this section as
`integrated activities'), in the preceding fiscal year, an amount
equivalent to not less than 25 percent of the funds paid to the State
under this section and subsections (b) and (c) of section 3 of the
Smith-Lever Act (7 U.S.C. 343) for the preceding fiscal
year.
`(B) DETERMINATION OF AMOUNT- In determining compliance with
subparagraph (A), the Secretary shall include all cooperative research and
extension funds expended by the State in the prior fiscal year, including
Federal, State, and local funds.
`(2) REDUCTION OF PERCENTAGE- The Secretary may reduce the minimum
percentage required to be expended for integrated activities under paragraph
(1) by a State in a case of hardship, unfeasibility, or other similar
circumstances beyond the control of the State, as determined by the
Secretary.
`(3) PLAN OF WORK- The State shall include in the plan of work of
the State required under section 7 of this Act and under section 4 of the
Smith-Lever Act (7 U.S.C. 344), as applicable, a description of the manner
in which the State will meet the requirements of this subsection.
`(4) APPLICABILITY- This subsection does not apply to funds
provided--
`(A) to a 1994 Institution (as defined in section 532 of the
Equity in Educational Land-Grant Status Act of 1994 (7 U.S.C. 301 note;
Public Law 103-382)); or
`(B) to the Commonwealth of Puerto Rico, the Virgin Islands, or
Guam.
`(5) RELATIONSHIP TO OTHER REQUIREMENTS- Funds described in
paragraph (1)(B) that a State uses to calculate the required amount of
expenditures for integrated activities under paragraph (1)(A) may also be
used in the same fiscal year to calculate the amount of expenditures for
multistate activities required under subsection (c)(3) of this section and
section 3(h) of the Smith-Lever Act (7 U.S.C. 343(h)).'.
(c) EFFECTIVE DATE- The amendments made by this section take effect on
October 1, 2002.
CHAPTER 2--1994 INSTITUTIONS
SEC. 754. EXTENSION AT 1994 INSTITUTIONS.
Section 3(b) of the Smith-Lever Act (7 U.S.C. 343(b)) is amended by
striking paragraph (3) and inserting the following:
`(3) EXTENSION AT 1994 INSTITUTIONS-
`(A) IN GENERAL- There are authorized to be appropriated for
fiscal year 2002 and each subsequent fiscal year, for payment to 1994
Institutions (as defined in section 532 of the Equity in Educational
Land-Grant Status Act of 1994 (7 U.S.C. 301 note; Public Law 103-382)),
such sums as are necessary for the purposes set forth in section 2, to
remain available until expended.
`(B) DISTRIBUTION- Amounts made available under subparagraph
(A)--
`(i) shall be distributed on the basis of a formula to be
developed and implemented by the Secretary, in consultation with the
1994 Institutions; and
`(ii) may include payments for extension activities carried out
during 1 or more fiscal years.
`(C) COOPERATIVE AGREEMENT- In accordance with such regulations as
the Secretary may promulgate, a 1994 Institution may administer funds
received under this paragraph through a cooperative agreement with an 1862
Institution or an 1890 Institution (as those terms are defined in section
2 of the Agricultural Research, Extension, and Education Reform Act of
1998 (7 U.S.C. 7601)).'.
SEC. 755. EQUITY IN EDUCATIONAL LAND-GRANT STATUS ACT OF 1994.
(a) TECHNICAL AMENDMENT TO REFLECT NAME CHANGES- Section 532 of the
Equity in Educational Land-Grant Status Act of 1994 (7 U.S.C. 301 note; Public
Law 103-382) is amended by striking paragraphs (1) through (30) and inserting
the following:
`(1) Bay Mills Community College.
`(2) Blackfeet Community College.
`(3) Cankdeska Cikana Community College.
`(4) College of Menominee Nation.
`(5) Crownpoint Institute of Technology.
`(8) Chief Dull Knife Memorial College.
`(9) Fond du Lac Tribal and Community College.
`(10) Fort Belknap College.
`(11) Fort Berthold Community College.
`(12) Fort Peck Community College.
`(13) Haskell Indian Nations University.
`(14) Institute of American Indian and Alaska Native Culture and
Arts Development.
`(15) Lac Courte Oreilles Ojibwa Community College.
`(16) Leech Lake Tribal College.
`(17) Little Big Horn College.
`(18) Little Priest Tribal College.
`(19) Nebraska Indian Community College.
`(20) Northwest Indian College.
`(21) Oglala Lakota College.
`(22) Salish Kootenai College.
`(23) Sinte Gleska University.
`(24) Sisseton Wahpeton Community College.
`(25) Si Tanka/Huron University.
`(26) Sitting Bull College.
`(27) Southwestern Indian Polytechnic Institute.
`(28) Stone Child College.
`(29) Turtle Mountain Community College.
`(30) United Tribes Technical College.
`(31) White Earth Tribal and Community College.'.
(b) ACCREDITATION REQUIREMENT FOR RESEARCH GRANTS- Section 533(a)(3)
of the Equity in Educational Land-Grant Status Act of 1994 (7 U.S.C. 301 note;
Public Law 103-382) is amended by striking `sections 534 and 535' and
inserting `sections 534, 535, and 536'.
(c) LAND-GRANT STATUS FOR 1994 INSTITUTIONS- Section 533(b) of the
Equity in Educational Land-Grant Status Act of 1994 (7 U.S.C. 301 note; Public
Law 103-382) is amended by striking `$4,600,000 for each of fiscal years 1996
through 2002' and inserting `such sums as are necessary for each of fiscal
years 2002 through 2006'.
(d) CHANGE OF INDIAN STUDENT COUNT FORMULA- Section 533(c)(4)(A) of
the Equity in Educational Land-Grant Status Act of 1994 (7 U.S.C. 301 note;
Public Law 103-382) is amended by striking `(as defined in section 390(3) of
the Carl D. Perkins Vocational and Applied Technology Education Act (20 U.S.C.
2397h(3)) for each 1994 Institution for the fiscal year' and inserting `(as
defined in section 2(a) of the Tribally Controlled College or University
Assistance Act of 1978 (25 U.S.C. 1801(a)))'.
(e) INCREASE IN INSTITUTIONAL PAYMENTS- Section 534(a)(1)(A) of the
Equity in Educational Land-Grant Status Act of 1994 (7 U.S.C. 301 note; Public
Law 103-382) is amended by striking `$50,000' and inserting
`$100,000'.
(f) INSTITUTIONAL CAPACITY BUILDING GRANTS- Section 535 of the Equity
in Educational Land-Grant Status Act of 1994 (7 U.S.C. 301 note; Public Law
103-382) is amended--
(1) in subsection (b)(1), by striking `2002' and inserting `2006';
and
(2) in subsection (c), by striking `$1,700,000 for each of fiscal
years 1996 through 2002' and inserting `such sums as are necessary for each
of fiscal years 2002 through 2006'.
(g) RESEARCH GRANTS- Section 536(c) of the Equity in Educational
Land-Grant Status Act of 1994 (7 U.S.C. 301 note; Public Law 103-382) is
amended by striking `2002' and inserting `2006'.
SEC. 756. ELIGIBILITY FOR INTEGRATED GRANTS PROGRAM.
Section 406(b) of the Agricultural Research, Extension, and Education
Reform Act of 1998 (7 U.S.C. 7626(b)) is amended by inserting `and 1994
Institutions' before `on a competitive basis'.
CHAPTER 3--1890 INSTITUTIONS
SEC. 757. AUTHORIZATION PERCENTAGES FOR RESEARCH AND EXTENSION FORMULA
FUNDS.
(a) EXTENSION- Section 1444(a) of the National Agricultural Research,
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3221(a)) is
amended--
(1) by striking `(a) There' and inserting the following:
`(a) AUTHORIZATION OF APPROPRIATIONS-
(2) by striking the second sentence; and
(3) in the third sentence, by striking `Beginning' through `6 per
centum' and inserting the following:
`(2) MINIMUM AMOUNT- Beginning with fiscal year 2002, there shall be
appropriated under this section for each fiscal year an amount that is not
less than 15 percent';
(3) by striking `Funds appropriated' and inserting the
following:
`(3) USES- Funds appropriated'; and
(4) by striking `No more' and inserting the following:
`(4) CARRYOVER- No more'.
(b) RESEARCH- Section 1445(a) of the National Agricultural Research,
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3222(a)) is
amended--
(1) by striking `(a) There' and inserting the following:
`(a) AUTHORIZATION OF APPROPRIATIONS-
(2) by striking the second sentence and inserting the
following:
`(2) MINIMUM AMOUNT- Beginning with fiscal year 2002, there shall be
appropriated under this section for each fiscal year an amount that is not
less than 25 percent of the total appropriations for the fiscal year under
section 3 of the Hatch Act of 1887 (7 U.S.C. 361c).';
(3) by striking `Funds appropriated' and inserting the
following:
`(3) USES- Funds appropriated';
(4) by striking `The eligible' and inserting the
following:
`(4) COORDINATION- The eligible'; and
(5) by striking `No more' and inserting the following:
`(5) CARRYOVER- No more'.
SEC. 758. CARRYOVER.
Section 1445(a) of the National Agricultural Research, Extension, and
Teaching Policy Act of 1977 (7 U.S.C. 3222(a) (as amended by section 757(b))
is amended by striking paragraph (5) and inserting the following:
`(A) IN GENERAL- The balance of any annual funds provided to an
eligible institution for a fiscal year under this section that remains
unexpended at the end of the fiscal year may be carried over for use
during the following fiscal year.
`(B) FAILURE TO EXPEND FULL AMOUNT- If any unexpended balance
carried over by an eligible institution is not expended by the end of the
second fiscal year, an amount equal to the unexpended balance shall be
deducted from the next succeeding annual allotment to the eligible
institution.'.
SEC. 759. REPORTING OF TECHNOLOGY TRANSFER ACTIVITIES.
Section 1445(c)(3) of the National Agricultural Research, Extension,
and Teaching Policy Act of 1977 (7 U.S.C. 3222(c)(3)) is amended by adding at
the end the following:
`(F) The technology transfer activities conducted with respect to
federally-funded agricultural research.'.
SEC. 760. GRANTS TO UPGRADE AGRICULTURAL AND FOOD SCIENCES FACILITIES AT
1890 LAND-GRANT COLLEGES, INCLUDING TUSKEGEE UNIVERSITY.
Section 1447(b) of the National Agricultural Research, Extension, and
Teaching Policy Act of 1977 (7 U.S.C. 3222b(b)) is amended by striking
`$15,000,000 for each of fiscal years 1996 through 2002' and inserting
`$25,000,000 for each of fiscal years 2002 through 2006'.
SEC. 761. NATIONAL RESEARCH AND TRAINING VIRTUAL CENTERS.
(a) AUTHORIZATION- Section 1448 of the National Agricultural Research,
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3222c) is amended by
striking `2002' each place it appears in subsections (a)(1) and (f) and
inserting `2006'.
(b) REDESIGNATION- Section 1448 of the National Agricultural Research,
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3222c) is
amended--
(1) in the section heading, by striking `centennial' and inserting
`virtual'; and
(2) by striking `centennial' each place it appears and inserting
`virtual'.
SEC. 762. MATCHING FUNDS REQUIREMENT FOR RESEARCH AND EXTENSION
ACTIVITIES.
Section 1449 of the National Agricultural Research, Extension, and
Teaching Policy Act of 1977 (7 U.S.C. 3222d) is amended by striking
subsections (c) and (d) and inserting the following:
`(1) IN GENERAL- For each of fiscal years 2003 through 2006, the
State shall provide matching funds from non-Federal sources.
`(2) AMOUNT- The amount of the matching funds shall be equal to not
less than--
`(A) for fiscal year 2003, 60 percent of the formula funds to be
distributed to the eligible institution; and
`(B) for each of fiscal years 2004 through 2006, 110 percent of
the amount required under this paragraph for the preceding fiscal
year.
`(d) WAIVERS- Notwithstanding subsection (f), for any of fiscal years
2003 through 2006, the Secretary may waive the matching funds requirement
under subsection (c) for any amount above the level of 50 percent for an
eligible institution of a State if the Secretary determines that the State
will be unlikely to meet the matching requirement.'.
CHAPTER 4--LAND-GRANT INSTITUTIONS
Subchapter A--General
SEC. 771. PRIORITY-SETTING PROCESS.
Section 102(c)(1) of the Agricultural Research, Extension, and
Education Reform Act of 1998 (7 U.S.C. 7612(c)(1)) is amended--
(1) by striking `establish and implement a process for obtaining'
and inserting `obtain public'; and
(2) by striking the period at the end and inserting the following:
`through a process that reflects transparency and opportunity for input from
producers of diverse agricultural crops and diverse geographic and cultural
communities.'.
SEC. 772. TERMINATION OF CERTAIN SCHEDULE A APPOINTMENTS.
(a) TERMINATION- Not later than 60 days after the date of enactment of
this Act, the Secretary of Agriculture shall terminate each appointment listed
as an excepted position under schedule A of the General Schedule made by the
Secretary to the Federal civil service of an individual who holds dual
government appointments, and who carries out agricultural extension work in a
program at a college or university eligible to receive funds, under--
(1) the Smith-Lever Act (7 U.S.C. 341 et seq.);
(2) section 1444 of the National Agricultural Research, Extension,
and Teaching Policy Act of 1977 (7 U.S.C. 3221); or
(3) section 208(e) of the District of Columbia Public Postsecondary
Education Reorganization Act (88 Stat. 1428).
(b) CONTINUATION OF CERTAIN FEDERAL BENEFITS-
(1) IN GENERAL- Notwithstanding title 5, United States Code, and
subject to paragraph (2), an individual described in subsection (a), during
the period the individual is employed in an agricultural extension program
described in subsection (a) without a break in service, shall continue
to--
(A) be eligible to participate, to the same extent that the
individual was eligible to participate (on the day before the date of
enactment of this Act), in--
(i) the Federal Employee Health Benefits
Program;
(ii) the Federal Employee Group Life Insurance
Program;
(iii) the Civil Service Retirement System;
(iv) the Federal Employee Retirement System;
and
(v) the Thrift Savings Plan; and
(B) receive Federal Civil Service employment credit to the same
extent that the individual was receiving such credit on the day before the
date of enactment of this Act.
(2) LIMITATIONS- An individual may continue to be eligible for the
benefits described in paragraph (1) if--
(A) in the case of an individual who remains employed in the
agricultural extension program described in subsection (a) on the date of
the enactment of this Act, the employing college or university continues
to fulfill the administrative and financial responsibilities (including
making agency contributions) associated with providing those benefits, as
determined by the Secretary of Agriculture; and
(B) in the case of an individual who changes employment to a
second college or university described in subsection (a)--
(i) the individual continues to work in an agricultural
extension program described in subsection (a), as determined by the
Secretary of Agriculture;
(ii) the second college or university--
(I) fulfills the administrative and financial responsibilities
(including making agency contributions) associated with providing
those benefits, as determined by the Secretary of Agriculture;
and
(II) within 120 days before the date of the employment of the
individual, had employed a different individual described in
subsection (a) who had performed the same duties of employment;
and
(iii) the individual was eligible for those benefits on the day
before the date of enactment of this Act.
Subchapter B--Land-Grant Institutions in Insular Areas
SEC. 775. DISTANCE EDUCATION GRANTS PROGRAM FOR INSULAR AREA LAND-GRANT
INSTITUTIONS.
The National Agricultural Research, Extension, and Teaching Policy Act
of 1977 (7 U.S.C. 3101 et seq.) (as amended by section 723) is amended by
adding at the end the following:
`Subtitle O--Land Grant Institutions in Insular
Areas
`SEC. 1489. DISTANCE EDUCATION GRANTS FOR INSULAR AREAS.
`(a) IN GENERAL- The Secretary may make competitive or noncompetitive
grants to State cooperative institutions in insular areas to strengthen the
capacity of State cooperative institutions to carry out distance food and
agricultural education programs using digital network technologies.
`(b) USE- Grants made under this section shall be used--
`(1) to acquire the equipment, instrumentation, networking
capability, hardware and software, digital network technology, and
infrastructure necessary to teach students and teachers about technology in
the classroom;
`(2) to develop and provide educational services (including faculty
development) to prepare students or faculty seeking a degree or certificate
that is approved by the State or a regional accrediting body recognized by
the Secretary of Education;
`(3) to provide teacher education, library and media specialist
training, and preschool and teacher aid certification to individuals who
seek to acquire or enhance technology skills in order to use technology in
the classroom or instructional process;
`(4) to implement a joint project to provide education regarding
technology in the classroom with a local educational agency, community-based
organization, national nonprofit organization, or business, including a
minority business or a business located in a HUBZone established under
section 31 of the Small Business Act (15 U.S.C. 657a); or
`(5) to provide leadership development to administrators, board
members, and faculty of eligible institutions with institutional
responsibility for technology education.
`(c) LIMITATION ON USE OF GRANT FUNDS- Funds provided under this
section shall not be used for the planning, acquisition, construction,
rehabilitation, or repair of a building or facility.
`(d) ADMINISTRATION OF PROGRAM- The Secretary may carry out this
section in a manner that recognizes the different needs and opportunities for
State cooperative institutions in the Atlantic and Pacific Oceans.
`(e) MATCHING REQUIREMENT-
`(1) IN GENERAL- The Secretary may establishment a requirement that
a State cooperative institution receiving a grant under this section shall
provide matching funds from non-Federal sources in an amount equal to not
less than 50 percent of the grant.
`(2) WAIVERS- If the Secretary establishes a matching requirement
under paragraph (1), the requirement shall include an option for the
Secretary to waive the requirement for an insular area State cooperative
institution for any fiscal year if the Secretary determines that the
institution will be unlikely to meet the matching requirement for the fiscal
year.
`(f) AUTHORIZATION OF APPROPRIATIONS- There is authorized to be
appropriated to carry out this section $4,000,000 for each of fiscal years
2002 through 2006.'.
SEC. 776. MATCHING REQUIREMENTS FOR RESEARCH AND EXTENSION FORMULA FUNDS
FOR INSULAR AREA LAND-GRANT INSTITUTIONS.
(a) EXPERIMENT STATIONS- Section 3(d) of the Hatch Act of 1887 (7
U.S.C. 361c(d)) is amended by striking paragraph (4) and inserting the
following:
`(4) EXCEPTION FOR INSULAR AREAS-
`(A) IN GENERAL- Effective beginning for fiscal year 2003, in lieu
of the matching funds requirement of paragraph (1), the insular areas of
the Commonwealth of Puerto Rico, Guam, and the Virgin Islands of the
United States shall provide matching funds from non-Federal sources in an
amount equal to not less than 50 percent of the formula funds distributed
by the Secretary to each of the insular areas, respectively, under this
section.
`(B) WAIVERS- The Secretary may waive the matching fund
requirement of subparagraph (A) for any fiscal year if the Secretary
determines that the government of the insular area will be unlikely to
meet the matching requirement for the fiscal year.'.
(b) COOPERATIVE AGRICULTURAL EXTENSION- Section 3(e) of the
Smith-Lever Act (7 U.S.C. 343(e)) is amended by striking paragraph (4) and
inserting the following:
`(4) EXCEPTION FOR INSULAR AREAS-
`(A) IN GENERAL- Effective beginning for fiscal year 2003, in lieu
of the matching funds requirement of paragraph (1), the insular areas of
the Commonwealth of Puerto Rico, Guam, and the Virgin Islands of the
United States shall provide matching funds from non-Federal sources in an
amount equal to not less than 50 percent of the formula funds distributed
by the Secretary to each of the insular areas, respectively, under this
section.
`(B) WAIVERS- The Secretary may waive the matching fund
requirement of subparagraph (A) for any fiscal year if the Secretary
determines that the government of the insular area will be unlikely to
meet the matching requirement for the fiscal year.'.
Subtitle E--Other Laws
SEC. 781. CRITICAL AGRICULTURAL MATERIALS.
Section 16(a) of the Critical Agricultural Materials Act (7 U.S.C.
178n(a)) is amended by striking `2002' and inserting `2006'.
SEC. 782. RESEARCH FACILITIES.
Section 6(a) of the Research Facilities Act (7 U.S.C. 390d(a)) is
amended by striking `2002' and inserting `2006'.
SEC. 783. FEDERAL AGRICULTURAL RESEARCH FACILITIES.
Section 1431 of the National Agricultural Research, Extension, and
Teaching Policy Act Amendments of 1985 (Public Law 99-198; 99 Stat. 1556) is
amended by striking `2002' and inserting `2006'.
SEC. 784. COMPETITIVE, SPECIAL, AND FACILITIES RESEARCH
GRANTS.
The Competitive, Special, and Facilities Research Grant Act (7 U.S.C.
450i) is amended in subsection (b)--
(1) in paragraph (2), by striking `in--' and all that follows and
inserting `, as those needs are determined by the Secretary, in consultation
with the National Agricultural Research, Extension, Education, and Economics
Advisory Board, not later than July 1 of each fiscal year for the purposes
of the following fiscal year.'; and
(2) in paragraph (10), by striking `2002' and inserting
`2006'.
SEC. 785. RISK MANAGEMENT EDUCATION FOR BEGINNING FARMERS AND
RANCHERS.
(a) IN GENERAL- Section 524(a)(3) of the Federal Crop Insurance Act (7
U.S.C. 1524(a)(3)) is amended by striking subparagraph (A) and inserting the
following:
`(A) AUTHORITY- The Secretary, acting through the Cooperative
State Research, Education, and Extension Service, shall establish a
program under which competitive grants are made to qualified public and
private entities (including land-grant colleges and universities,
cooperative extension services, colleges or universities, and community
colleges), as determined by the Secretary, for the purpose
of--
`(i) educating producers generally about the full range of risk
management activities, including futures, options, agricultural trade
options, crop insurance, cash forward contracting, debt reduction,
production diversification, farm resources risk reduction, and other
risk management strategies; or
`(ii) educating beginning farmers and
ranchers--
`(I) in the areas described in clause (i);
and
`(II) in risk management strategies, as part of programs that
are specifically targeted at beginning farmers and
ranchers.'.
(b) TECHNICAL CORRECTION- Section 524(b) of the Federal Crop Insurance
Act (7 U.S.C. 1524(b)) is amended by redesignating the second paragraph (2)
and paragraph (3) as paragraphs (3) and (4), respectively.
SEC. 786. AQUACULTURE.
Section 10 of the National Aquaculture Act of 1980 (16 U.S.C. 2809) is
amended by striking `2002' each place it appears and inserting `2006'.
SEC. 787. CARBON CYCLE RESEARCH.
Section 221 of the Agricultural Risk Protection Act of 2000 (114 Stat.
407) is amended--
(1) in subsection (a), by striking `Of the amount' and all that
follows through `to provide' and inserting `To the extent that funds are
made available for the purpose, the Secretary shall provide';
(2) in subsection (d), by striking `under subsection (a)' and
inserting `to carry out this section'; and
(3) by adding at the end the following:
`(e) AUTHORIZATION OF APPROPRIATIONS- There are authorized to be
appropriated for fiscal years 2002 through 2006 such sums as are necessary to
carry out this section.'.
Subtitle F--New Authorities
SEC. 791. DEFINITIONS.
(1) DEPARTMENT- The term `Department' means the Department of
Agriculture.
(2) SECRETARY- The term `Secretary' means the Secretary of
Agriculture.
SEC. 792. REGULATORY AND INSPECTION RESEARCH.
(a) DEFINITIONS- In this section:
(1) INSPECTION OR REGULATORY AGENCY OF THE DEPARTMENT- The term
`inspection or regulatory agency of the Department' includes--
(A) the Animal and Plant Health Inspection Service;
(B) the Food Safety and Inspection Service;
(C) the Grain Inspection, Packers, and Stockyards Administration;
and
(D) the Agricultural Marketing Service.
(2) URGENT APPLIED RESEARCH NEEDS- The term `urgent applied research
needs' includes research necessary to carry out--
(A) agricultural marketing programs;
(B) programs to protect the animal and plant resources of the
United States; and
(C) educational programs or special studies to improve the safety
of the food supply of the United States.
(b) TIMELY, COST-EFFECTIVE RESEARCH- To meet the urgent applied
research needs of inspection or regulatory agencies of the Department, the
Secretary--
(1) may use a public or private source; and
(2) shall use the most practicable source to provide timely,
cost-effective means of providing the research.
(c) CONFLICTS OF INTEREST- The Secretary shall establish guidelines to
prevent any conflict of interest that may arise if an inspection or regulatory
agency of the Department obtains research from any Federal agency the work or
technology transfer efforts of which are funded in part by an industry subject
to the jurisdiction of the inspection or regulatory agency of the
Department.
(d) REGULATIONS- The Secretary may promulgate such regulations as are
necessary to carry out this section.
SEC. 793. EMERGENCY RESEARCH TRANSFER AUTHORITY.
(a) IN GENERAL- Subject to subsection (b), in addition to any other
authority that the Secretary may have to transfer appropriated funds, the
Secretary may transfer up to 2 percent of any appropriation made available to
an office or agency of the Department for a fiscal year for agricultural
research, extension, marketing, animal and plant health, nutrition, food
safety, nutrition education, or forestry programs to any other appropriation
for an office or agency of the Department for emergency research, extension,
or education activities needed to address imminent threats to animal and plant
health, food safety, or human nutrition, including bioterrorism.
(b) LIMITATIONS- The Secretary may transfer funds under subsection (a)
only--
(1) on a determination by the Secretary that the need is so imminent
that the need will not be timely met by annual, supplemental, or emergency
appropriations;
(2) in an aggregate amount that does not exceed $5,000,000 for any
fiscal year; and
(3) with the approval of the Director of the Office of Management
and Budget.
SEC. 794. REVIEW OF AGRICULTURAL RESEARCH SERVICE.
(a) IN GENERAL- The Secretary shall conduct a review of the purpose,
efficiency, effectiveness, and impact on agricultural research of the
Agricultural Research Service.
(b) ADMINISTRATION- In conducting the review, the Secretary shall use
persons outside the Department, including--
(2) college and university faculty;
(3) private and nonprofit scientists; or
(4) other persons familiar with the role of the Agricultural
Research Service in conducting agricultural research in the United
States.
(c) REPORT- Not later than September 30, 2004, the Secretary shall
submit to the Committee on Agriculture of the House of Representatives and the
Committee on Agriculture, Nutrition, and Forestry of the Senate a report on
the results of the review.
(d) FUNDING- The Secretary shall use to carry out this section not
more than 0.1 percent of the amount of appropriations made available to the
Agricultural Research Service for each of fiscal years 2002 through
2004.
SEC. 795. TECHNOLOGY TRANSFER FOR RURAL DEVELOPMENT.
(a) IN GENERAL- The Secretary, acting through the Rural
Business-Cooperative Service and the Agricultural Research Service, shall
establish a program to promote the availability of technology transfer
opportunities of the Department to rural businesses and residents.
(b) COMPONENTS OF PROGRAM- The program shall, to the maximum extent
practicable, include--
(1) a website featuring information about the program and technology
transfer opportunities of the Department;
(2) an annual joint program for State economic development directors
and Department rural development directors regarding technology transfer
opportunities of the Agricultural Research Service and other offices and
agencies of the Department; and
(3) technology transfer opportunity programs at each Agricultural
Research Service laboratory, conducted at least biennially, which may
include participation by other local Federal laboratories, as
appropriate.
(c) FUNDING- The Secretary shall use to carry out this
section--
(1) amounts made available to the Agricultural Research Service;
and
(2) amounts made available to the Rural Business-Cooperative Service
for salaries and expenses.
SEC. 796. BEGINNING FARMER AND RANCHER DEVELOPMENT PROGRAM.
(a) DEFINITION OF BEGINNING FARMER OR RANCHER- In this section, the
term `beginning farmer or rancher' means a person that--
(1)(A) has not operated a farm or ranch; or
(B) has operated a farm or ranch for not more than 10 years;
and
(2) meets such other criteria as the Secretary may
establish.
(b) PROGRAM- The Secretary shall establish a beginning farmer and
rancher development program to provide training, education, outreach, and
technical assistance initiatives for beginning farmers or ranchers.
(1) IN GENERAL- In carrying out this section, the Secretary shall
make competitive grants to support new and established local and regional
training, education, outreach, and technical assistance initiatives for
beginning farmers or ranchers, including programs and services (as
appropriate) relating to--
(A) mentoring, apprenticeships, and internships;
(B) resources and referral;
(C) assisting beginning farmers or ranchers in acquiring land from
retiring farmers and ranchers;
(D) innovative farm and ranch transfer strategies;
(E) entrepreneurship and business training;
(F) model land leasing contracts;
(G) financial management training;
(I) conservation assistance;
(J) risk management education;
(K) diversification and marketing strategies;
(L) curriculum development;
(M) understanding the impact of concentration and
globalization;
(N) basic livestock and crop farming practices;
(O) the acquisition and management of agricultural
credit;
(P) environmental compliance;
(Q) information processing; and
(R) other similar subject areas of use to beginning farmers or
ranchers.
(2) ELIGIBILITY- To be eligible to receive a grant under this
subsection, the recipient shall be a collaborative State, tribal, local, or
regionally-based network or partnership of public or private entities, which
may include--
(A) a State cooperative extension service;
(B) a Federal, State, or tribal agency;
(C) a community-based and nongovernmental
organization;
(D) a college or university (including an institution awarding an
associate's degree) or foundation maintained by a college or university;
or
(E) any other appropriate partner, as determined by the
Secretary.
(3) TERM OF GRANT- The term of a grant under this subsection shall
not exceed 3 years.
(4) MATCHING REQUIREMENT- To be eligible to receive a grant under
this subsection, a recipient shall provide a match in the form of cash or
in-kind contributions in an amount equal to 25 percent of the funds provided
by the grant.
(5) SET-ASIDE- Not less than 25 percent of funds used to carry out
this subsection for a fiscal year shall be used to support programs and
services that address the needs of--
(A) limited resource beginning farmers or ranchers (as defined by
the Secretary);
(B) socially disadvantaged beginning farmers or ranchers (as
defined in section 355(e) of the Consolidated Farm and Rural Development
Act (7 U.S.C. 2003(e)); and
(C) farmworkers desiring to become farmers or
ranchers.
(6) PROHIBITION- A grant made under this subsection may not be used
for the planning, repair, rehabilitation, acquisition, or construction of a
building or facility.
(7) ADMINISTRATIVE COSTS- The Secretary shall use not more than 4
percent of the funds made available to carry out this section for
administrative costs incurred by the Secretary in carrying out this
section.
(1) IN GENERAL- In carrying out this section, the Secretary shall
establish beginning farmer and rancher education teams to develop curricula
and conduct educational programs and workshops for beginning farmers or
ranchers in diverse geographical areas of the United States.
(2) CURRICULUM- In promoting the development of curricula, the
Secretary shall, to the maximum extent practicable, include modules tailored
to specific audiences of beginning farmers or ranchers, based on crop or
regional diversity.
(3) COMPOSITION- In establishing an education team for a specific
program or workshop, the Secretary shall, to the maximum extent
practicable--
(A) obtain the short-term services of specialists with knowledge
and expertise in programs serving beginning farmers or ranchers;
and
(B) use officers and employees of the Department with direct
experience in programs of the Department that may be taught as part of the
curriculum for the program or workshop.
(A) IN GENERAL- In carrying out this subsection, the Secretary
shall cooperate, to the maximum extent practicable, with--
(i) State cooperative extension services;
(ii) Federal and State agencies;
(iii) community-based and nongovernmental
organizations;
(iv) colleges and universities (including an institution
awarding an associate's degree) or foundations maintained by a college
or university; and
(v) other appropriate partners, as determined by the
Secretary.
(B) COOPERATIVE AGREEMENT- Notwithstanding chapter 63 of title 31,
United States Code, the Secretary may enter into a cooperative agreement
to reflect the terms of any cooperation under subparagraph
(A).
(e) CURRICULUM AND TRAINING CLEARINGHOUSE- The Secretary shall
establish an online clearinghouse that makes available to beginning farmers or
ranchers education curricula and training materials and programs, which may
include online courses for direct use by beginning farmers or
ranchers.
(f) STAKEHOLDER INPUT- In carrying out this section, the Secretary
shall seek stakeholder input from--
(1) beginning farmers and ranchers;
(2) national, State, tribal, and local organizations and other
persons with expertise in operating beginning farmer and rancher programs;
and
(3) the Advisory Committee on Beginning Farmers and Ranchers
established under section 5 of the Agricultural Credit Improvement Act of
1992 (7 U.S.C. 1929 note; Public Law 102-554).
(g) PARTICIPATION BY OTHER FARMERS AND RANCHERS- Nothing in this
section prohibits the Secretary from allowing farmers and ranchers who are not
beginning farmers or ranchers from participating in programs authorized under
this section to the extent that the Secretary determines that such
participation is appropriate and will not detract from the primary purpose of
educating beginning farmers and ranchers.
(1) FEES AND CONTRIBUTIONS-
(A) IN GENERAL- The Secretary may--
(i) charge a fee to cover all or part of the costs of curriculum
development and the delivery of programs or workshops provided
by--
(I) a beginning farmer and rancher education team established
under subsection (d); or
(II) the online clearinghouse established under subsection
(e); and
(ii) accept contributions from cooperating entities under a
cooperative agreement entered into under subsection (d)(4)(B) to cover
all or part of the costs for the delivery of programs or workshops by
the beginning farmer and rancher education teams.
(B) AVAILABILITY- Fees and contributions received by the Secretary
under subparagraph (A) shall--
(i) be deposited in the account that incurred the costs to carry
out this section;
(ii) be available to the Secretary to carry out the purposes of
the account, without further appropriation;
(iii) remain available until expended; and
(iv) be in addition to any funds made available under paragraph
(2).
(A) IN GENERAL- Not later than 30 days after the date of enactment
of this Act, and on October 1, 2002, and each October 1 thereafter through
October 1, 2005, out of any funds in the Treasury not otherwise
appropriated, the Secretary of the Treasury shall transfer to the
Secretary to carry out this section $15,000,000, to remain available for 2
fiscal years.
(B) RECEIPT AND ACCEPTANCE- The Secretary shall be entitled to
receive, shall accept, and shall use to carry out this section the funds
transferred under subparagraph (A), without further
appropriation.
SEC. 797. SENSE OF CONGRESS REGARDING DOUBLING OF FUNDING FOR
AGRICULTURAL RESEARCH.
It is the sense of Congress that--
(1) Federal funding for food and agricultural research has been
essentially constant for 2 decades, putting at risk the scientific base on
which food and agricultural advances have been made;
(2) the resulting increase in the relative proportion of private
sector, industry investments in food and agricultural research has led to
questions about the independence and objectivity of research and outreach
conducted by the Federal and university research sectors; and
(3) funding for food and agricultural research should be at least
doubled over the next 5 fiscal years--
(A) to restore the balance between public and private sector
funding for food and agricultural research; and
(B) to maintain the scientific base on which food and agricultural
advances are made.
SEC. 798. RURAL POLICY RESEARCH.
(a) IN GENERAL- There is established in the Treasury of the United
States an account to be known as the `Rural Research Fund Account' (referred
to in this section as the `Account') to provide funds for activities described
in subsection (c).
(1) IN GENERAL- Not later than 30 days after the date of enactment
of this Act, and on October 1, 2002, and each October 1 thereafter through
October 1, 2005, out of any funds in the Treasury not otherwise
appropriated, the Secretary of the Treasury shall transfer to the Account to
carry out this section $15,000,000, to remain available for 2 fiscal
years.
(2) RECEIPT AND ACCEPTANCE- The Secretary shall be entitled to
receive, shall accept, and shall use to carry out this section the funds
transferred under paragraph (1), without further appropriation.
(c) PURPOSES- The Secretary shall use the funds in the Account to make
competitive research grants for applied and outcome oriented research and
policy research and analysis of rural issues relating to--
(2) effects of demographic change, including aging population,
outmigration, and labor resources;
(3) needs of groups of rural citizens, including senior citizens,
families, youth, children, and socially disadvantaged
individuals;
(4) rural community development;
(5) rural infrastructure, including water and waste, community
facilities, telecommunications, electricity, and high-speed broadband
services;
(6) rural business development, including credit, venture capital,
cooperatives, value-added enterprises, new and alternative markets, farm and
rural enterprise formation, and entrepreneurship;
(7) farm management, including strategic planning, business and
marketing opportunities, risk management, natural resources and
environmental management, organic and sustainable farming systems, public
sector development of new crops and crop varieties, and intergenerational
transfer strategies;
(8) rural education and extension programs, including methods of
delivery, availability of resources, and use of distance learning;
and
(9) rural health, including mental health, on-farm safety, and food
safety.
(d) REQUIREMENTS- In making grants under this section, the Secretary
shall--
(1) solicit and consider public input from persons who conduct or
use agricultural research, extension, education, or rural development
programs; and
(2) ensure that funded proposals will provide high-quality research
that may be of use to public policymakers and private entities in making
decisions that affect development in rural areas.
(e) ELIGIBLE GRANTEES- The Secretary may make a grant under this
section to--
(2) a college or university or a foundation maintained by a college
or university;
(3) a State cooperative institution (as defined in section 1404 of
the National Agricultural Research, Extension, and Teaching Policy Act of
1977 (7 U.S.C. 3103));
(5) a nonprofit organization, institution, or
association;
(6) a business association;
(7) an agency of a State, local, or tribal government; or
(8) a regional partnership of public and private
agencies.
(f) TERM- A grant under this section shall have a term that does not
exceed 5 years.
(1) IN GENERAL- Subject to paragraph (2), the Secretary may require
as a condition of the grant that the grant funding be matched, in whole or
in part, with matching funds from a non-Federal source.
(2) BUSINESS ASSOCIATIONS- The Secretary shall require that a grant
to a business association be matched with equal matching funds from a
non-Federal source.
(h) ADMINISTRATIVE COSTS- The Secretary may use not more than 4
percent of the funds made available for grants under this section to pay
administrative costs incurred by the Secretary in carrying out this
section.
SEC. 798A. PRIORITY FOR FARMERS AND RANCHERS PARTICIPATING IN
CONSERVATION PROGRAMS.
In carrying out new on-farm research or extension programs or projects
authorized by this Act, an amendment made by this Act, or any Act enacted
after the date of enactment of this Act, the Secretary shall give priority in
carrying out the programs or projects to using farms or ranches of farmers or
ranchers that participate in Federal agricultural conservation
programs.
SEC. 798B. ORGANIC PRODUCTION AND MARKET DATA INITIATIVES.
The Secretary shall ensure that segregated data on the production and
marketing of organic agricultural products is included in the ongoing baseline
of data collection regarding agricultural production and marketing.
SEC. 798C. ORGANICALLY PRODUCED PRODUCT RESEARCH AND
EDUCATION.
Not later than December 1, 2004, the Secretary, acting through the
Administrator of the Economic Research Service, shall prepare, in consultation
with the Advisory Committee on Small Farms, 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 on--
(1) the impact on small farms of the implementation of the national
organic program under part 205 of title 7, Code of Federal Regulations;
and
(2) the production and marketing costs to producers and handlers
associated with transitioning to organic production.
SEC. 798D. INTERNATIONAL ORGANIC RESEARCH COLLABORATION.
The Secretary, acting through the Agricultural Research Service
(including the National Agriculture Library) and the Economic Research
Service, shall facilitate access by research and extension professionals,
farmers, and other interested persons in the United States to, and the use by
those persons of, organic research conducted outside the United
States.
SEC. 798E. REPORT ON PRODUCERS AND HANDLERS OF ORGANIC AGRICULTURAL
PRODUCTS.
Not later than 1 year after funds are made available to carry out this
section, the Secretary of Agriculture shall submit to Congress a report
that--
(A) the extent to which producers and handlers of organic
agricultural products are contributing to research and promotion programs
of the Department of Agriculture;
(B) the extent to which producers and handlers of organic
agricultural products are surveyed for ideas for research and
promotion;
(C) ways in which the programs reflect the contributions made by
producers and handlers of organic agricultural products and directly
benefit the producers and handlers; and
(D) the implementation of initiatives that directly benefit
organic producers and handlers; and
(2) evaluates industry and other proposals for improving the
treatment of certified organic agricultural products under Federal marketing
orders, including proposals to target additional resources for research and
promotion of organic products and to differentiate between certified organic
and other products in new or existing volume limitations or other orderly
marketing requirements.
TITLE VIII--FORESTRY
SEC. 801. OFFICE OF INTERNATIONAL FORESTRY.
Section 2405(d) of the Food, Agriculture, Conservation, and Trade Act
of 1990 (7 U.S.C. 6704(d)) is amended by striking `2002' and inserting
`2006'.
SEC. 802. MCINTIRE-STENNIS COOPERATIVE FORESTRY RESEARCH
PROGRAM.
It is the sense of Congress to reaffirm the importance of Public Law
87-88 (16 U.S.C. 582a et seq.), commonly known as the `McIntire-Stennis
Cooperative Forestry Act'.
SEC. 803. SUSTAINABLE FORESTRY OUTREACH INITIATIVE; RENEWABLE RESOURCES
EXTENSION ACTIVITIES.
(a) SUSTAINABLE FORESTRY OUTREACH INITIATIVE- The Renewable Resources
Extension Act of 1978 is amended by inserting after section 5A (16 U.S.C.
1674a) the following:
`SEC. 5B. SUSTAINABLE FORESTRY OUTREACH INITIATIVE.
`The Secretary shall establish a program, to be known as the
`Sustainable Forestry Outreach Initiative', to educate landowners
concerning--
`(1) the value and benefits of practicing sustainable
forestry;
`(2) the importance of professional forestry advice in achieving
sustainable forestry objectives; and
`(3) the variety of public and private sector resources available to
assist the landowners in planning for and practicing sustainable
forestry.'.
(b) RENEWABLE RESOURCES EXTENSION ACTIVITIES-
(1) AUTHORIZATION OF APPROPRIATIONS- Section 6 of the Renewable
Resources Extension Act of 1978 (16 U.S.C. 1675) is amended by striking the
first sentence and inserting the following: `There is authorized to be
appropriated to carry out this Act $30,000,000 for each of fiscal years 2002
through 2006.'.
(2) TERMINATION DATE- Section 8 of the Renewable Resources Extension
Act of 1978 (16 U.S.C. 1671 note; Public Law 95-306) is amended by striking
`2000' and inserting `2006'.
SEC. 804. FORESTRY INCENTIVES PROGRAM.
Section 4(j) of the Cooperative Forestry Assistance Act of 1978 (16
U.S.C. 2103(j)) is amended by striking `2002' and inserting `2006'.
SEC. 805. SUSTAINABLE FORESTRY COOPERATIVE PROGRAM.
The Cooperative Forestry Assistance Act of 1978 is amended by
inserting after section 5 (16 U.S.C. 2103a) the following:
`SEC. 5A. SUSTAINABLE FORESTRY COOPERATIVE PROGRAM.
`(a) DEFINITIONS- In this section:
`(1) FARMER OR RANCHER- The term `farmer or rancher' means a person
engaged in the production of an agricultural commodity (including
livestock).
`(2) FORESTRY COOPERATIVE- The term `forestry cooperative' means an
association that is--
`(A) owned and operated by nonindustrial private forest
landowners; and
`(B) comprised of members--
`(i) of which at least 51 percent are farmers or ranchers;
and
`(ii) that use sustainable forestry practices on nonindustrial
private forest land to create a long-term, sustainable income
stream.
`(3) NONINDUSTRIAL PRIVATE FOREST LAND- The term `nonindustrial
private forest land' has the meaning given the term `nonindustrial private
forest lands' in section 5(c).
`(b) ESTABLISHMENT- The Secretary shall establish a program, to be
known as the `sustainable forestry cooperative program', under which the
Secretary shall provide, to nonprofit organizations on a competitive basis,
grants to establish, and develop and support, sustainable forestry practices
carried out by members of, forestry cooperatives.
`(1) IN GENERAL- Subject to paragraph (2), funds from a grant
provided under this section shall be used for--
`(A) predevelopment, development, start-up, capital acquisition,
and marketing costs associated with a forestry cooperative;
or
`(B) the development or support of a sustainable forestry practice
of a member of a forestry cooperative.
`(A) DEVELOPMENT- The Secretary shall provide funds under
paragraph (1)(A) only to a nonprofit organization with demonstrated
expertise in cooperative development, as determined by the
Secretary.
`(B) COMPLIANCE WITH PLAN- A sustainable forestry practice
developed or supported through the use of funds from a grant under this
section shall comply with any applicable standards for sustainable
forestry contained in a management plan that--
`(i) meets the requirements of section 6A(g);
and
`(ii) is approved by the State forester (or equivalent State
official).
`(1) IN GENERAL- Not later than 30 days after the date of enactment
of this section, and on October 1, 2002, and each October 1 thereafter
through October 1, 2005, out of any funds in the Treasury not otherwise
appropriated, the Secretary of the Treasury shall transfer to the Secretary
of Agriculture to carry out this section $2,000,000, to remain available
until expended.
`(2) RECEIPT AND ACCEPTANCE- The Secretary shall be entitled to
receive, shall accept, and shall use to carry out this section the funds
transferred under paragraph (1), without further appropriation.'.
SEC. 806. SUSTAINABLE FOREST MANAGEMENT PROGRAM.
(a) FINDINGS AND PURPOSES-
(1) FINDINGS- Congress finds that--
(A) the United States is becoming increasingly dependent on
nonindustrial private forest land to supply necessary market commodities
and nonmarket conservation values;
(B) there is a strong demand for expanded assistance programs for
owners of nonindustrial private forest land because the majority of the
wood supply of the United States comes from nonindustrial private forest
land;
(C) soil, water, and air quality, fish and wildlife habitat,
aesthetic values, and opportunities for outdoor recreation in the United
States would be maintained and improved through good stewardship of
nonindustrial private forest land;
(D) the products and services resulting from stewardship of
nonindustrial private forest land contribute to the economic, social, and
ecological health and diversity of rural communities;
(E) catastrophic wildfires threaten human lives, property,
forests, and other resources;
(F) Federal and State cooperation in forest fire prevention and
control has proven effective and valuable because properly managed forest
stands are less susceptible to catastrophic fire, as demonstrated by the
catastrophic fire seasons of 1998 and 2000;
(G) owners of nonindustrial private forest land face increased
pressure to make that land available for development and other uses,
resulting in forest land loss and fragmentation that reduces the ability
of private forest land to provide a full range of societal
benefits;
(H) complex investments in the management of long-rotation forest
stands, including sustainable hardwood management, are often the most
difficult commitments for owners of nonindustrial private forest
land;
(I) the investment of a single Federal dollar in State and private
forestry programs is estimated to leverage, on the average, $9 from State,
local, and private sources; and
(J) comprehensive, multiresource planning assistance made
available to each landowner before the provision of technical assistance
would provide an opportunity to ensure that the landowner is aware of the
many projects and activities eligible for cost-share
assistance.
(2) PURPOSES- The purposes of this section are--
(A) to strengthen the commitment of the Secretary to sustainable
forest management to enhance the productivity of timber, fish and wildlife
habitat, soil and water quality, wetland, recreational resources, and
aesthetic values of forest land; and
(B) to establish a coordinated and cooperative Federal, State, and
local sustainable forestry program for the establishment, management,
maintenance, enhancement, and restoration of forests on nonindustrial
private forest land.
(b) PROGRAM- The Cooperative Forestry Assistance Act of 1978 is
amended by inserting after section 6 (16 U.S.C. 2103b) the following:
`SEC. 6A. SUSTAINABLE FOREST MANAGEMENT PROGRAM.
`(a) DEFINITIONS- In this section:
`(1) COMMITTEE- The term `Committee' means a State Forest
Stewardship Coordinating Committee established under section
19(b).
`(2) INDIAN TRIBE- The term `Indian tribe' has the meaning given the
term in section 4 of the Indian Self-Determination and Education Assistance
Act (25 U.S.C. 450b).
`(3) PROGRAM- The term `program' means the sustainable forest
management program established under subsection (b)(1).
`(4) NONINDUSTRIAL PRIVATE FOREST LAND- The term `nonindustrial
private forest land' has the meaning given the term `nonindustrial private
forest lands' in section 5(c).
`(5) OWNER- The term `owner' means an owner of nonindustrial private
forest land.
`(6) STATE FORESTER- The term `State forester' means the director or
other head of a State forestry agency (or an equivalent State
official).
`(1) IN GENERAL- The Secretary shall establish a sustainable forest
management program to--
`(A) provide financial assistance to State foresters;
and
`(B) encourage the long-term sustainability of nonindustrial
private forest land in the United States by assisting the owners of
nonindustrial private forest land, through State foresters, in more
actively managing the nonindustrial private forest land and related
resources of those owners through the use of State, Federal, and private
sector resource management expertise, financial assistance, and
educational programs.
`(2) COORDINATION- The Secretary, acting through State foresters,
shall implement the program--
`(A) in coordination with the Committees; and
`(B) in consultation with--
`(i) other Federal, State, and local natural resource management
agencies;
`(ii) institutions of higher education; and
`(iii) a broad range of private sector
interests.
`(c) STATE PRIORITY PLAN-
`(1) IN GENERAL- Subject to paragraph (3), as a condition of receipt
of funding under the program, a State Forester and the Committee of the
State shall jointly develop and submit to the Secretary a 5-year plan that
describes the funding priorities of the State in meeting the purposes of the
program.
`(2) PUBLIC PARTICIPATION- The plan submitted to the Secretary under
paragraph (1) shall include documentation of the efforts of the State to
provide for public participation in the development of the plan.
`(3) STATE PRIORITIES- The Secretary shall ensure, to the maximum
extent practicable, that the need for expanded technical assistance programs
for owners is met in the annual funding priorities of each State described
in paragraph (1).
`(d) PURPOSES- The Secretary shall allocate resources of the Secretary
among States in accordance with subsection (j) to encourage, in accordance
with the plan of each State described in subsection (c)--
`(1) the investment in practices to establish, restore, protect,
manage, maintain, and enhance the health and productivity of the
nonindustrial private forest land in the United States;
`(2) the occurrence of afforestation, reforestation, improvement of
poorly stocked stands, timber stand improvement, practices necessary to
improve seedling growth and survival, and growth enhancement practices as
needed to enhance and sustain the long-term productivity of timber and
nontimber forest resources to--
`(A) meet projected public demand for forest resources;
and
`(B) provide environmental benefits;
`(3) the protection of riparian buffers and forest
wetland;
`(4) the maintenance and enhancement of fish and wildlife
habitat;
`(5) the enhancement of soil, air, and water quality;
`(6) through the use of agroforestry practices, the reduction of
soil erosion and maintenance of soil quality;
`(7) the maintenance and enhancement of the forest
landbase;
`(8) the reduction of the threat of catastrophic wildfires;
and
`(9) the preservation of aesthetic quality and opportunities for
outdoor recreation.
`(1) COST-SHARE ASSISTANCE-
`(A) IN GENERAL- Except as provided in paragraph (2), an owner
shall be eligible to receive cost-share assistance from a State forester
under the program if the owner--
`(i) develops a management plan in accordance with subsection
(f) that--
`(I) addresses site-specific activities and practices;
and
`(II) is approved by the State forester;
`(ii) agrees to implement approved activities in accordance with
the management plan for a period of not less than 10 years, unless the
State forester approves a modification to the management plan;
and
`(iii) except as provided in subparagraph (B), owns not more
than 1,000 acres of nonindustrial private forest land.
`(B) EXCEPTION FOR SIGNIFICANT PUBLIC BENEFITS- The Secretary may
approve the provision of cost-share assistance to an owner that owns more
than 1,000 but less than 5,000 acres of nonindustrial private forest land
if the Secretary, in consultation with the State forester, determines that
significant public benefits will accrue as a result of the
approval.
`(2) PAYMENT FOR PLAN DEVELOPMENT- The Secretary, acting through a
State forester, may provide cost-share assistance to an owner to develop a
management plan.
`(3) LIMITATIONS- An owner shall receive no cost-share assistance
for management of nonindustrial private forest land under this section if
the owner receives cost-share assistance for that land under--
`(A) the forestry incentives program under section
4;
`(B) the stewardship incentives program under section 6;
or
`(C) any conservation program administered by the
Secretary.
`(4) RATE; SCHEDULE- Subject to paragraph (5), the Secretary, in
consultation with the State forester, shall determine the rate and timing of
cost-share payments.
`(A) PERCENTAGE OF COST- Subject to subparagraph (B), a cost-share
payment shall not exceed the lesser of an amount equal to--
`(i) 75 percent of the total cost of implementing the project or
activity; or
`(ii) such lesser percentage of the total cost of implementing
the project or activity as is determined by the appropriate State
forester.
`(B) AGGREGATE PAYMENT LIMIT- The Secretary shall determine the
maximum aggregate amount of cost-share payments that an owner may receive
under this section.
`(f) MANAGEMENT PLAN- An owner that seeks to participate in the
program shall--
`(1) submit to the State forester a management plan
that--
`(A) meets the requirements of this section; and
`(B)(i) is prepared by, or in consultation with, a professional
resource manager;
`(ii) identifies and describes projects and activities to be
carried out by the owner to protect soil, water, air, range, and aesthetic
quality, recreation, timber, water, wetland, and fish and wildlife
resources on the land in a manner that is compatible with the objectives
of the owner;
`(iii) addresses any criteria established by the applicable State
and the applicable Committee; and
`(iv)(I) at a minimum, applies to the portion of the land on which
any project or activity funded under the program will be carried out;
or
`(II) in a case in which a project or activity described in
subclause (I) may affect acreage outside the portion of the land on which
the project or activity is carried out, applies to all land of the owner
that is in forest cover and that may be affected by the project or
activity; and
`(2) agree that all projects and activities conducted on the land
shall be consistent with the management plan.
`(g) APPROVED ACTIVITIES-
`(1) IN GENERAL- The Secretary, in consultation with the State
forester and the appropriate Committee, shall develop for each State a list
of approved forest activities and practices eligible for cost-share
assistance that meets the purposes of the program described in subsection
(d).
`(2) TYPES OF ACTIVITIES- Approved activities and practices under
paragraph (1) may consist of activities and practices for--
`(A) the establishment, management, maintenance, and restoration
of forests for shelterbelts, windbreaks, aesthetic quality, and other
conservation purposes;
`(B) the sustainable growth and management of forests for timber
production;
`(C) the restoration, use, and enhancement of forest wetland and
riparian areas;
`(D) the protection of water quality and watersheds
through--
`(i) the planting of trees in riparian areas;
and
`(ii) the enhanced management and maintenance of native
vegetation on land vital to water quality;
`(E) the preservation, restoration, or development of habitat for
plants, fish, and wildlife;
`(F)(i) the control, detection, monitoring, and prevention of the
spread of invasive species and pests on nonindustrial private forest land;
and
`(ii) the restoration of nonindustrial private forest land
affected by invasive species and pests;
`(G) the conduct of other management activities, such as the
reduction of hazardous fuel use, that reduce the risks to forests posed
by, and that restore, recover, and mitigate the damage to forests caused
by, fire or any other catastrophic event, as determined by the
Secretary;
`(H) the development of management plans;
`(I) the acquisition by the State of permanent easements to
maintain forest cover and protect important forest values;
and
`(J) the conduct of other activities approved by the Secretary, in
consultation with the State forester and the appropriate
Committees.
`(1) IN GENERAL- The Secretary shall establish a procedure to
recover cost-share payments made under this section in any case in which the
recipient of the payment fails--
`(A) to implement a project or activity in accordance with the
management plan; or
`(B) comply with any requirement of this section.
`(2) ADDITIONAL AUTHORITY- The authority under paragraph (1) shall
be in addition to, and not in lieu of, any other authority available to the
Secretary.
`(1) INTERIM REPORT- Not later than 2 1/2 years after the date on
which funds are made available to implement a State priority plan under
subsection (c), the State implementing the plan shall submit to the
Secretary an interim report describing the status of projects and activities
funded under the plan as of that date.
`(2) FINAL REPORT- Not later than 5 years after the date on which
funds are made available to implement a State priority plan under subsection
(c), the State implementing the plan shall submit to the Secretary a final
report describing the status of all projects and activities funded under the
plan as of that date.
`(1) IN GENERAL- The Secretary, acting through State foresters,
shall distribute funds available for cost sharing under the program based on
a nationwide funding formula developed under paragraph (2).
`(2) FORMULA- In developing the formula referred to in paragraph
(1), the Secretary shall--
`(A) assess public benefits that would result from the
distribution; and
`(i) the total acreage of nonindustrial private forest land in
each State;
`(ii) the potential productivity of that land, as determined by
the Secretary;
`(iii) the number of owners eligible for cost sharing in each
State;
`(iv) the opportunities to enhance nontimber resources on that
land, including--
`(I) the protection of riparian buffers and forest
wetland;
`(II) the preservation of fish and wildlife
habitat;
`(III) the enhancement of soil, air, and water quality;
and
`(IV) the preservation of aesthetic quality and opportunities
for outdoor recreation;
`(v) the anticipated demand for timber and nontimber resources
in each State;
`(vi) the need to improve forest health to minimize the damaging
effects of catastrophic fire, insects, disease, or
weather;
`(vii) the need and demand for agroforestry practices in each
State;
`(viii) the need to maintain and enhance the forest landbase;
and
`(ix) the need for afforestation, reforestation, and timber
stand improvement.
`(1) IN GENERAL- Not later than 30 days after the date of enactment
of this section, and on October 1, 2002, and each October 1 thereafter
through October 1, 2005, out of any funds in the Treasury not otherwise
appropriated, the Secretary of the Treasury shall transfer to the Secretary
of Agriculture to carry out this section $48,000,000, to remain available
until expended.
`(2) RECEIPT AND ACCEPTANCE- The Secretary shall be entitled to
receive, shall accept, and shall use to carry out this section the funds
transferred under paragraph (1), without further appropriation.'.
SEC. 807. FOREST LEGACY PROGRAM.
Section 7(l) of the Cooperative Forestry Management Act of 1978 (16
U.S.C. 2103c(l)) is amended by adding at the end the following:
`(3) STATE AUTHORIZATION- Notwithstanding any other provision of
this Act, a State may authorize any local government, or any qualified
organization that is defined in section 170(h)(3) of the Internal Revenue
Code of 1986 and organized for at least 1 of the purposes described in
clause (i), (ii), or (iii) of section 170(h)(4)(A) of that Code, to acquire
in land in the State, in accordance with this section, 1 or more interests
in conservation easements to carry out the Forest Legacy Program in the
State.'.
SEC. 808. FOREST FIRE RESEARCH CENTERS.
(a) FINDINGS- Congress finds that--
(1) there is an increasing threat of fire to millions of acres of
forest land and rangeland throughout the United States;
(2) this threat is especially great in the interior States of the
western United States, where the Forest Service estimates that 39,000,000
acres of National Forest System land are at high risk of catastrophic
wildfire;
(3)(A) the degraded condition of forest land and rangeland is often
the consequence of land management practices that emphasize the control and
prevention of fires; and
(B) the land management practices disrupted the occurrence of
frequent low-intensity fires that periodically remove flammable
undergrowth;
(4) as a result of the land management practices--
(A) some forest land and rangeland in the United States no longer
function naturally as ecosystems; and
(B) drought cycles and the invasion of insects and disease have
resulted in vast areas of dead or dying trees, overstocked stands, and the
invasion of undesirable species;
(5)(A) population movement into wildland-urban interface areas
exacerbate the fire danger;
(B) the increasing number of larger, more intense fires pose grave
hazards to human health, safety, property, and infrastructure in the areas;
and
(C) smoke from wildfires, which contain fine particulate matter and
other hazardous pollutants, pose substantial health risks to people living
in the areas;
(6)(A) the budgets and resources of Federal, State, and local
entities supporting firefighting efforts have been stretched to their
limits;
(B) according to the Comptroller General, the average cost of
attempting to put out fires in the interior West grew by 150 percent, from
$134,000,000 in fiscal year 1986 to $335,000,000 in fiscal year 1994;
and
(C) the costs of preparedness, including the costs of maintaining a
readiness force to fight fires, rose about 70 percent, from $189,000,000 in
fiscal year 1992 to $326,000,000 in fiscal year 1997;
(7) diminishing Federal resources (including the availability of
personnel) have limited the ability of Federal fire researchers--
(A) to respond to management needs; and
(B) to use technological advancements for analyzing fire
management costs;
(8) the Federal fire research program is funded at approximately 1/3
of the amount that is required to address emerging fire problems, resulting
in the lack of a cohesive strategy to address the threat of catastrophic
wildfires; and
(9) there is a critical need for cost-effective investments in
improved fire management technologies.
(b) FOREST FIRE RESEARCH CENTERS- The Forest and Rangeland Renewable
Resources Research Act of 1978 (16 U.S.C. 1641 et seq.) is amended by adding
at the end the following:
`SEC. 11. FOREST FIRE RESEARCH CENTERS.
`(a) IN GENERAL- Subject to the availability of appropriations, the
Secretary of Agriculture, acting through the Chief of the Forest Service
(referred to in this section as the `Secretary') shall establish at least 2
forest fire research centers at institutions of higher education (which may
include research centers in existence on the date of enactment of this
section) that--
`(1) have expertise in natural resource development; and
`(2) are located in close proximity to other Federal natural
resource, forest management, and land management agencies.
`(b) LOCATIONS- Of the forest fire research centers established under
subsection (a)--
`(1) at least 1 center shall be located in California, Idaho,
Montana, Oregon, or Washington; and
`(2) at least 1 center shall be located in Arizona, Colorado,
Nevada, New Mexico, or Wyoming.
`(c) DUTIES- At each of the forest fire research centers established
under subsection (a), the Secretary shall provide for--
`(1) the conduct of integrative, interdisciplinary research into the
ecological, socioeconomic, and environmental impact of fire control and the
use of management of ecosystems and landscapes to facilitate fire control;
and
`(2) the development of mechanisms to rapidly transfer new fire
control and management technologies to fire and land managers.
`(1) IN GENERAL- The Secretary, in consultation with the Secretary
of the Interior, shall establish a committee composed of fire and land
managers and fire researchers to determine the areas of emphasis and
establish priorities for research projects conducted at forest fire research
centers established under subsection (a).
`(2) ADMINISTRATION- The Federal Advisory Committee Act (5 U.S.C.
App.) and section 102 of the Agricultural Research, Extension, and Education
Reform Act of 1998 (7 U.S.C. 7612) shall not apply to the committee
established under paragraph (1).
`(e) AUTHORIZATION OF APPROPRIATIONS- There are authorized to be
appropriated such sums as are necessary to carry out this section.'.
SEC. 809. WILDFIRE PREVENTION AND HAZARDOUS FUEL PURCHASE PILOT
PROGRAM.
(a) FINDINGS- Congress finds that--
(1) the damage caused by wildfire disasters has been equivalent in
magnitude to the damage resulting from the Northridge earthquake, Hurricane
Andrew, and the recent flooding of the Mississippi River and the Red
River;
(2) more than 20,000 communities in the United States are at risk
from wildfire and approximately 11,000 of those communities are located near
Federal land;
(3) the accumulation of heavy forest fuel loads continues to
increase as a result of disease, insect infestations, and drought, further
increasing the risk of fire each year;
(4) modification of forest fuel load conditions through the removal
of hazardous fuels would--
(A) minimize catastrophic damage from wildfires;
(B) reduce the need for emergency funding to respond to wildfires;
and
(C) protect lives, communities, watersheds, and wildlife
habitat;
(5) the hazardous fuels removed from forest land represent an
abundant renewable resource, as well as a significant supply of biomass for
biomass-to-energy facilities;
(6) the United States should invest in technologies that promote
economic and entrepreneurial opportunities in processing forest products
removed through hazardous fuel reduction activities; and
(7) the United States should--
(A) develop and expand markets for traditionally underused wood
and other biomass as an outlet for value-added excessive forest fuels;
and
(B) commit resources to support planning, assessments, and project
reviews to ensure that hazardous fuels management is accomplished
expeditiously and in an environmentally sound manner.
(b) DEFINITIONS- In this section:
(1) BIOMASS-TO-ENERGY FACILITY- The term `biomass-to-energy
facility' means a facility that uses forest biomass or other biomass as a
raw material to produce electric energy, useful heat, or a transportation
fuel.
(2) ELIGIBLE COMMUNITY- The term `eligible community'
means--
(A) any town, township, municipality, or other similar unit of
local government (as determined by the Secretary), or any area represented
by a nonprofit corporation or institution organized under Federal or State
law to promote broad-based economic development, that--
(i) has a population of not more than 10,000
individuals;
(ii) is located within a county in which at least 15 percent of
the total primary and secondary labor and proprietor income is derived
from forestry, wood products, and forest-related industries, such as
recreation, forage production, and tourism; and
(iii) is located near forest land, the condition of which land
the Secretary determines poses a substantial present or potential hazard
to--
(I) the safety of a forest ecosystem;
(II) the safety of wildlife; or
(III) in the case of a wildfire, the safety of firefighters,
other individuals, and communities; and
(B) any county that is not contained within a metropolitan
statistical area that meets the conditions described in clauses (ii) and
(iii) of subparagraph (A).
(3) FOREST BIOMASS- The term `forest biomass' means fuel and biomass
accumulation from precommercial thinnings, slash, and brush on forest
land.
(4) HAZARDOUS FUEL- The term `hazardous fuel' means any excessive
accumulation of forest biomass or other biomass on public or private forest
land in the wildland-urban interface (as defined by the Secretary)
that--
(A) is located near an eligible community;
(B) is designated as condition class 2 or 3 under the report of
the Forest Service entitled `Protecting People and Sustainable Resources
in Fire-Adapted Ecosystems', dated October 13, 2000) (including any
related maps); and
(C) the Secretary determines poses a substantial present or
potential hazard to--
(i) the safety of a forest ecosystem;
(ii) the safety of wildlife; or
(iii) in the case of wildfire, the safety of firefighters, other
individuals, and communities.
(5) INDIAN TRIBE- The term `Indian tribe' has the meaning given the
term in section 4 of the Indian Self-Determination and Education Assistance
Act (25 U.S.C. 450b).
(6) NATIONAL FIRE PLAN- The term `National Fire Plan' means the plan
prepared by the Secretary of Agriculture and the Secretary of the Interior
entitled `Managing the Impact of Wildfires on Communities and the
Environment' and dated September 8, 2000.
(7) PERSON- The term `person' includes--
(C) a small business, microbusiness, or other business that is
incorporated in the United States; and
(D) a nonprofit organization.
(8) SECRETARY- The term `Secretary' means--
(A) the Secretary of Agriculture (or a designee), with respect to
National Forest System land and private land in the United States;
and
(B) the Secretary of the Interior (or a designee) with respect to
Federal land under the jurisdiction of the Secretary of the Interior or an
Indian tribe.
(c) WILDFIRE PREVENTION AND HAZARDOUS FUEL PURCHASE PILOT PROGRAM-
(A) IN GENERAL- Subject to the availability of appropriations, the
Secretary may make grants to--
(i) persons that operate existing or new biomass-to-energy
facilities to offset the costs incurred by those persons in purchasing
hazardous fuels derived from public and private forest land adjacent to
eligible communities; and
(ii) persons in rural communities that are seeking ways to
improve the use of, or add value to, hazardous fuels.
(B) SELECTION CRITERIA- The Secretary shall select recipients for
grants under subparagraph (A)(i) based on--
(i) planned purchases by the recipients of hazardous fuels, as
demonstrated by the recipient through the submission to the Secretary of
such assurances as the Secretary may require;
(ii) the level of anticipated benefits of those purchases in
reducing the risk of wildfires;
(iii) the extent to which the biomass-to-energy facility avoids
adverse environmental impacts, including cumulative impacts, over the
expected life of the biomass-to-energy facility; and
(iv) the demonstrable level of anticipated benefits for eligible
communities, including the potential to develop thermal or electric
energy resources or affordable energy for communities.
(A) IN GENERAL- A grant under subparagraph (A)(i)
shall--
(I) the distance required to transport hazardous fuels to a
biomass-to-energy facility; and
(II) the cost of removal of hazardous fuels;
and
(ii) be in an amount that is at least equal to the product
obtained by multiplying--
(I) the number of tons of hazardous fuels delivered to a grant
recipient; by
(II) an amount that is at least $5 but not more than $10 per
ton of hazardous fuels, as determined by the Secretary taking into
consideration the factors described in clause (i).
(B) LIMITATION ON INDIVIDUAL GRANTS-
(i) IN GENERAL- Except as provided in clause (ii), a grant under
subparagraph (A) shall not exceed $1,500,000 for any biomass-to-energy
facility for any fiscal year.
(ii) SMALL BIOMASS-TO-ENERGY FACILITIES- A biomass-to-energy
facility that has an annual production of 5 megawatts or less shall not
be subject to the limitation under clause (i).
(3) MONITORING OF GRANT RECIPIENT ACTIVITIES-
(A) IN GENERAL- As a condition of receipt of a grant under this
subsection, a grant recipient shall keep such records as the Secretary may
require, including records that--
(i) completely and accurately disclose the use of grant funds;
and
(ii) describe all transactions involved in the purchase of
hazardous fuels derived from forest land.
(B) ACCESS- On notice by the Secretary, the operator of a
biomass-to-energy facility that purchases or uses hazardous fuels with
funds from a grant under this subsection shall provide the Secretary
with--
(i) reasonable access to the biomass-to-energy facility;
and
(ii) an opportunity to examine the inventory and records of the
biomass-to-energy facility.
(4) MONITORING OF EFFECT OF TREATMENTS-
(A) IN GENERAL- To determine and document the environmental impact
of hazardous fuel removal, the Secretary shall monitor--
(i) environmental impacts of activities carried out under this
subsection; and
(ii) Federal land from which hazardous fuels are removed and
sold to a biomass-to-energy facility under this
subsection.
(i) IN GENERAL- The Comptroller General of the United States
shall monitor--
(I) the number of jobs created in or near eligible communities
as a result of the implementation of this
subsection;
(II) the opportunities created for small businesses and
microbusinesses as a result of the implementation of this
subsection;
(III) the types and amounts of energy supplies created as a
result of the implementation of this subsection;
and
(IV) energy prices for eligible
communities.
(ii) REPORT- Beginning in fiscal year 2003, the Comptroller
General of the United States shall submit to the Committee on Energy and
Natural Resources and the Committee on Agriculture, Nutrition, and
Forestry of the Senate and the Committee on Resources and the Committee
on Agriculture of the House of Representatives an annual report that
describes the information obtained through monitoring under clause
(i).
(A) IN GENERAL- Not later than September 30, 2004, the Comptroller
General shall submit to each of the committees described in paragraph
(4)(B)(ii) a report that describes the results and effectiveness of the
pilot program.
(B) REPORTS BY SECRETARY- The Secretary shall submit to each of
the committees described in paragraph (4)(B)(ii) an annual report
describing the results of the pilot program that includes--
(i) an identification of the size of each biomass-to-energy
facility that receives a grant under this section; and
(ii) the haul radius associated with each
grant.
(C) TECHNICAL FEASIBILITY REPORT- Not later than December 1, 2003,
the Secretary of Agriculture, in cooperation with the Forest Products Lab
and the Economic Action Program of the Forest Service, shall submit to
each of the committees described in paragraph (4)(B)(ii) a report that
describes--
(i) the technical feasibility of the use by small-scale biomass
energy units of small-diameter trees and forest residues as a source of
fuel;
(ii) the environmental impacts relating to the use of
small-diameter trees and forest residues as described in clause (i);
and
(iii) any social or economic benefits of small-scale biomass
energy units for rural communities.
(6) GRANTS TO OTHER PERSONS-
(A) IN GENERAL- In addition to biomass-to-energy facilities, the
Secretary may make grants under this subsection to persons in rural
communities that are seeking ways to improve the use of, or add value to,
hazardous fuels.
(B) SELECTION- The Secretary shall select recipients of grants
under subparagraph (A) based on--
(i) the extent to which the grant recipient avoids environmental
impacts; and
(ii) the demonstrable level of anticipated benefits to rural
communities, including opportunities for small businesses and
microbusinesses and the potential for new job creation, that may result
from the provision of the grant.
(C) MONITORING- With respect to a grant made under this
paragraph--
(i) the monitoring provisions described in paragraph (3) and
applicable to biomass-to-energy facilities shall apply;
and
(ii) the Secretary shall monitor the environmental impacts of
projects funded by grants provided under this
paragraph.
(7) AUTHORIZATION OF APPROPRIATIONS- There is authorized to be
appropriated to carry out this subsection $50,000,000 for each of fiscal
years 2002 through 2006.
(d) LONG-TERM FOREST STEWARDSHIP CONTRACTS FOR HAZARDOUS FUELS
REMOVAL-
(1) ANNUAL ASSESSMENT OF TREATMENT ACREAGE-
(A) IN GENERAL- Subject to the availability of appropriations, not
later than March 1 of each of fiscal years 2002 through 2006, the
Secretary shall submit to Congress an assessment of the number of acres of
National Forest System land recommended to be treated during the
subsequent fiscal year using stewardship end result contracts authorized
by paragraph (3).
(B) COMPONENTS- The assessment shall--
(i) be based on the treatment schedules contained in the report
entitled `Protecting People and Sustaining Resources in Fire-Adapted
Ecosystems', dated October 13, 2000, and incorporated into the National
Fire Plan;
(ii) identify the acreage by condition class, type of treatment,
and treatment year to achieve the restoration goals outlined in the
report within 10-, 15-, and 20-year time periods;
(iii) give priority to condition class 3 areas (as described in
subsection (b)(4)(B)), including modifications in the restoration goals
based on the effects of--
(II) hazardous fuel treatments under the National Fire Plan;
or
(iv) provide information relating to the type of material and
estimated quantities and range of sizes of material that shall be
included in the treatments;
(v) describe the land allocation categories in which the
contract authorities shall be used; and
(vi) give priority to areas described in subsection
(b)(4)(A).
(2) FUNDING RECOMMENDATION- The Secretary shall include in the
annual assessment under paragraph (1) a request for funds sufficient to
implement the recommendations contained in the assessment using stewardship
end result contracts described in paragraph (3) in any case in which the
Secretary determines that the objectives of the National Fire Plan would
best be accomplished through forest stewardship end result
contracting.
(3) STEWARDSHIP END RESULT CONTRACTING-
(A) IN GENERAL- Subject to the availability of appropriations, the
Secretary may enter into not more than 28 stewardship end result contracts
to implement the National Fire Plan on National Forest System land based
on the treatment schedules provided in the annual assessments conducted
under paragraph (1)(B)(i).
(B) PERIOD OF CONTRACTS- The contracting goals and authorities
described in subsections (b) through (g) of section 347 of the Department
of the Interior and Related Agencies Appropriations Act, 1999 (commonly
known as the `Stewardship End Result Contracting Demonstration Project')
(16 U.S.C. 2104 note; Public Law 105-277), shall apply to contracts
entered into under this paragraph, except that 14 of the 28 contracts
entered into under subparagraph (A) shall be subject to the conditions
that--
(i) funds from the contract, and any offset value of forest
products that exceeds the value of the resource improvement treatments
carried out under the contract, shall be deposited in the Treasury of
the United States;
(ii) section 347(c)(3)(A) of the Department of the Interior and
Related Agencies Appropriations Act, 1999 (commonly known as the
`Stewardship End Result Contracting Demonstration Project') (16 U.S.C.
2104 note; Public Law 105-277) shall not apply to those contracts;
and
(iii) the implementation shall be accomplished using separate
contracts for the harvesting or collection, and sale, of merchantable
material.
(C) STATUS REPORT- Beginning with the assessment required under
paragraph (1) for fiscal year 2003, the Secretary shall include in the
annual assessment under paragraph (1) a status report of the stewardship
end result contracts entered into under this paragraph.
(4) AUTHORIZATION OF APPROPRIATIONS- There are authorized to be
appropriated to carry out this subsection such sums as are necessary for
each of fiscal years 2002 through 2006.
(e) EXCLUDED AREAS- In carrying out this section, the Secretary
shall--
(1) because of sensitivity of natural, cultural, or historical
resources, designate areas to be excluded from any program under this
section; and
(2) carry out this section only in the wildland-urban interface, as
defined by the Secretary.
(f) TERMINATION OF AUTHORITY- The authority provided under this
section shall terminate on September 30, 2006.
SEC. 810. CHESAPEAKE BAY WATERSHED FORESTRY PROGRAM.
The Cooperative Forestry Assistance Act of 1978 is amended by
inserting after section 9 (16 U.S.C. 2105) the following:
`SEC. 9A. CHESAPEAKE BAY WATERSHED FORESTRY PROGRAM.
`(a) DEFINITIONS- In this section:
`(1) AGREEMENT- The term `Agreement' means the Chesapeake 2000
Agreement, an interstate agreement the purpose of which is to correct the
nutrient-related problems in the Chesapeake Bay by 2010.
`(A) IN GENERAL- The term `Bay-area State' means a State any part
of which is located in the watershed of the Chesapeake Bay.
`(B) INCLUSION- The term `Bay-area State' includes the District of
Columbia.
`(3) CHESAPEAKE BAY EXECUTIVE COUNCIL- The term `Council' means the
Chesapeake Bay Executive Council.
`(4) DIRECTOR- The term `Director' means the Director of Chesapeake
Bay watershed forestry efforts designated under subsection
(b)(2)(A).
`(5) ELIGIBLE ENTITY- The term `eligible entity' means--
`(A) the government of a Bay-area State (or a political
subdivision); and
`(B) an organization such as an educational institution or a
community or conservation organization.
`(6) ELIGIBLE PROJECT- The term `eligible project' means a project
the purpose of which is to--
`(A) improve wildlife habitat and water quality through the
establishment, protection, and stewardship of riparian and wetland
forests;
`(B) improve the capacity of a State or nonprofit organization to
implement forest conservation, restoration, and stewardship
actions;
`(C) develop and implement a watershed management plan that
addresses forest conservation and restoration actions;
`(D) provide outreach and assistance to private landowners and
communities to restore or protect watersheds through the enhancement of
forests;
`(E) develop and implement communication, education, or technology
transfer programs that broaden public understanding of the value of trees
and forests and management of trees and forests in sustaining and
restoring watershed health; and
`(F) conduct applied research, inventory, assessment, or
monitoring activities.
`(7) PROGRAM- The term `program' means the Chesapeake Bay watershed
forestry program established under subsection (b)(1).
`(8) SECRETARY- The term `Secretary' means the Secretary of
Agriculture, acting through the Chief of the Forest Service.
`(1) IN GENERAL- The Secretary shall establish the Chesapeake Bay
watershed forestry program to provide technical and financial assistance to
the Council, Bay-area States, local governments, and nonprofit organizations
to carry out eligible projects.
`(A) IN GENERAL- The Secretary shall designate an employee of the
Forest Service to serve as the Director for Chesapeake Bay watershed
forestry efforts.
`(B) DUTIES- The Director shall work in cooperation with the
Secretary to carry out the purposes of the program described in paragraph
(1).
`(c) CHESAPEAKE WATERSHED FORESTRY GRANTS-
`(1) IN GENERAL- In carrying out the program, the Secretary, in
coordination with the Director, may provide grants to assist eligible
entities in carrying out eligible projects.
`(2) COST SHARING- The amount of a grant awarded under this
subsection shall not exceed 75 percent of the total cost of the eligible
project.
`(3) ADDITIONAL REQUIREMENTS- The Secretary, in consultation with
the Director, may prescribe any requirements and procedures necessary to
carry out this subsection.
`(d) CHESAPEAKE WATERSHED FOREST ASSESSMENT AND CONSERVATION STUDY-
`(1) IN GENERAL- The Director, in cooperation with the Council,
shall conduct a Chesapeake Bay watershed forestry research and assessment
study that--
`(A) assesses the extent and location of forest loss and
fragmentation;
`(B) identifies critical forest land that should be protected to
achieve the purposes of the Agreement;
`(C) prioritizes afforestation needs;
`(i) management strategies based on actions carried out and
information obtained under subparagraphs (A) through (C) to expand
conservation and stewardship of the forest ecosystem in the Chesapeake
Bay watershed; and
`(ii) ways in which the Federal Government can work with State,
county, local, and private entities to conserve critical forests,
including recommendations on the feasibility of establishing new units
of the National Forest System; and
`(E) identifies further inventory, assessment, and research needed
to achieve the purposes of the Agreement.
`(2) REPORT- Not later than 2 years after the date of enactment of
this section, the Director shall submit to Congress a comprehensive report
on the results of the study under paragraph (1).
`(e) CHESAPEAKE BAY URBAN WATERSHED FORESTRY RESEARCH COOPERATIVE
PROGRAM-
`(1) IN GENERAL- The Secretary, in cooperation with the Director,
may establish a comprehensive Chesapeake Bay urban watershed forestry
research cooperative program to provide technical and financial assistance
to eligible entities.
`(2) PURPOSES- The purposes of the cooperative program shall
be--
`(A) to meet the need of the urban population of the Chesapeake
Bay watershed in managing forest land in urban and urbanizing areas
through a combination of--
`(ii) demonstration projects;
`(iii) implementation guidelines; and
`(iv) training and education;
`(B) to coalesce information from local managers, Federal, State,
and private researchers, and state-of-the-art technology to answer
critical urban forestry questions relating to air and water quality and
watershed health; and
`(C) to provide a link between research and urban and community
forestry policy, planning, and management.
`(f) AUTHORIZATION OF APPROPRIATIONS- There are authorized to be
appropriated to carry out this section--
`(1) $3,000,000 for fiscal year 2002; and
`(2) $3,500,000 for each of fiscal years 2003 through
2006.'.
SEC. 811. ENHANCED COMMUNITY FIRE PROTECTION.
(a) FINDINGS- Congress finds that--
(1) the severity and intensity of wildfires have increased
dramatically over the past few decades as a result of past fire and land
management policies;
(2) the record 2000 fire season is a prime example of what can be
expected if action is not taken to reduce the risk of catastrophic
wildfires;
(3) wildfires threaten not only the forested resources of the United
States, but also the thousands of communities intermingled with wildland in
the wildland-urban interface;
(4) wetland forests provide essential ecological services, such as
filtering pollutants, buffering important rivers and estuaries, and
minimizing flooding, that make the protection and restoration of those
forests worthy of special focus;
(5) the National Fire Plan, if implemented to achieve appropriate
priorities, is the proper, coordinated, and most effective means to address
the issue of wildfires;
(6) while adequate authorities exist to address the problem of
wildfires at the landscape level on Federal land, there is limited authority
to take action on most private land where the largest threat to life and
property lies; and
(7) there is a significant Federal interest in enhancing the
protection of communities from wildfire.
(b) ENHANCED COMMUNITY FIRE PROTECTION- The Cooperative Forestry
Assistance Act of 1978 is amended by inserting after section 10 (16 U.S.C.
2106) the following:
`SEC. 10A. ENHANCED COMMUNITY FIRE PROTECTION.
`(a) COOPERATIVE MANAGEMENT RELATING TO WILDFIRE THREATS-
Notwithstanding section 7 of the Federal Fire Prevention and Control Act of
1974 (15 U.S.C. 2206), the Secretary may cooperate with State foresters and
equivalent State officials to--
`(1) assist in the prevention, control, suppression, and prescribed
use of fires (including through the provision of financial, technical, and
related assistance);
`(2) protect communities from wildfire threats;
`(3) enhance the growth and maintenance of trees and forests in a
manner that promotes overall forest health; and
`(4) ensure the continued production of all forest resources,
including timber, outdoor recreation opportunities, wildlife habitat, and
clean water, through conservation of forest cover on watersheds,
shelterbelts, and windbreaks.
`(b) COMMUNITY AND PRIVATE LAND FIRE ASSISTANCE PROGRAM-
`(1) IN GENERAL- The Secretary shall establish a program to be known
as the `community and private land fire assistance program' (referred to in
this section as the `Program')--
`(A) to focus the Federal role in promoting optimal firefighting
efficiency at the Federal, State, and local levels;
`(B) to provide increased assistance to Federal projects that
establish landscape level protection from wildfires;
`(C) to expand outreach and education programs concerning fire
prevention to homeowners and communities; and
`(D) to establish defensible space against wildfires around the
homes and property of private landowners.
`(2) ADMINISTRATION AND IMPLEMENTATION- The Program shall be
administered by the Secretary and, with respect to non-Federal land
described in paragraph (3), carried out through the State forester or
equivalent State official.
`(3) COMPONENTS- The Secretary may carry out under the Program, on
National Forest System land and non-Federal land determined by the Secretary
in consultation with State foresters and Committees--
`(A) fuel hazard mitigation and prevention;
`(B) invasive species management;
`(C) multiresource wildfire and community protection
planning;
`(D) community and landowner education enterprises, including the
program known as `FIREWISE';
`(E) market development and expansion;
`(F) improved use of wood products; and
`(G) restoration projects.
`(4) PRIORITY- In entering into contracts to carry out projects
under the Program, the Secretary shall give priority to contracts with local
persons or entities.
`(c) AUTHORITY- The authority provided under this section shall be in
addition to any authority provided under section 10.
`(d) AUTHORIZATION OF APPROPRIATIONS- There are authorized to be
appropriated to the Secretary to carry out this section $35,000,000 for each
of fiscal years 2002 through 2006.'.
SEC. 812. WATERSHED FORESTRY ASSISTANCE PROGRAM.
(a) FINDINGS- Congress finds that--
(1) there has been a dramatic shift in public attitudes and
perceptions about forest management, particularly in the understanding and
practice of sustainable forest management;
(2) it is commonly recognized that proper stewardship of forest land
is essential to--
(A) sustain and restore watershed health;
(B) produce clean water; and
(C) maintain healthy aquatic systems;
(3) forests are increasingly important to the protection and
sustainability of drinking water supplies for more than 1/2 of the
population of the United States;
(4) forest loss and fragmentation in urbanizing areas are
contributing to flooding, degradation of urban stream habitat and water
quality, and public health concerns;
(5) scientific evidence and public awareness with respect to the
manner in which forest management can positively affect water quality and
quantity, and the manner in which trees, forests, and forestry practices
(such as forest buffers) can serve as solutions to water quality problems in
rural and urban areas, are increasing;
(6) the application of forestry best management practices developed
at the State level has been found to greatly facilitate the achievement of
water quality goals;
(7) significant efforts are underway to revisit and make
improvements on needed forestry best management practices;
(8) according to the report of the Forest Service numbered FS-660
and entitled `Water and the Forest Service', forests are a requirement for
maintenance of clean water because--
(A) approximately 66 percent of the freshwater resources of the
United States originate on forests; and
(B) forests cover approximately 1/3 of the land area of the United
States;
(9) because almost 500,000,000 acres, or approximately 2/3, of the
forest land of the United States is owned by non-Federal entities, a
significant burden is placed on private forest landowners to provide or
maintain the clean water needed by the public for drinking, swimming,
fishing, and a number of other water uses;
(10) because the decisions made by individual landowners and
communities will affect the ability to maintain the health of rural and
urban watersheds in the future, there is a need to integrate forest
management, conservation, restoration, and stewardship in watershed
management;
(11) although water management is the primary responsibility of
States, the Federal Government has a responsibility to promote and encourage
the ability of States and private forest landowners to sustain the delivery
of clean, abundant water from forest land;
(12) as of the date of enactment of this Act, the availability of
Federal assistance to support forest landowners to achieve the water goals
identified in many Federal laws (including regulations) is lacking;
and
(13) increased research for, education for, and technical and
financial assistance provided to, forest landowners and communities that
relate to the protection of watersheds and improvement of water quality, are
needed to realize the expectations of the general public for clean water and
healthy aquatic systems.
(b) PURPOSES- The purposes of this section are to--
(1) improve the understanding of landowners and the public with
respect to the relationship between water quality and forest
management;
(2) encourage landowners to maintain tree cover and use tree
plantings and vegetative treatments as creative solutions to water quality
and quantity problems associated with varying land uses;
(3) enhance and complement source water protection in watersheds
that provide drinking water for municipalities;
(4) establish new partnerships and collaborative watershed
approaches to forest management, stewardship, and protection; and
(5) provide technical and financial assistance to States to deliver
a coordinated program that through the provision of technical, financial,
and educational assistance to qualified individuals and
entities--
(A) enhances State forestry best management practices programs;
and
(B) protects and improves water quality on forest
land.
(c) PROGRAM- The Cooperative Forestry Assistance Act of 1978 is
amended by inserting after section 5A (as added by section 805) the
following:
`SEC. 5B. WATERSHED FORESTRY ASSISTANCE PROGRAM.
`(a) ESTABLISHMENT- Subject to the availability of appropriations, the
Secretary shall establish a watershed forestry assistance program (referred to
in this section as the `program') to provide to States, through State
foresters (as defined in section 6A), technical, financial, and related
assistance to--
`(1) expand forest stewardship capacities and activities through
State forestry best management practices and other means at the State level;
and
`(2) prevent water quality degradation, and address watershed
issues, on non-Federal forest land.
`(b) WATERSHED FORESTRY EDUCATION, TECHNICAL ASSISTANCE, AND PLANNING-
`(A) IN GENERAL- In carrying out the program, the Secretary shall
cooperate with State foresters to develop a plan, to be administered by
the Secretary and implemented by State foresters, to provide technical
assistance to assist States in preventing and mitigating water quality
degradation.
`(B) PARTICIPATION- In developing the plan under subparagraph (A),
the Secretary shall encourage participation of interested members of the
public (including nonprofit private organizations and local watershed
councils).
`(2) COMPONENTS- The plan described in paragraph (1) shall include
provisions to--
`(A) build and strengthen watershed partnerships focusing on
forest land at the national, State, regional, and local
levels;
`(B) provide State forestry best management practices and water
quality technical assistance directly to private landowners;
`(C) provide technical guidance relating to water quality
management through forest management in degraded watersheds to land
managers and policymakers;
`(D)(i) complement State nonpoint source assessment and management
plans established under section 319 of the Federal Water Pollution Control
Act (33 U.S.C. 1329); and
`(ii) provide enhanced opportunities for coordination and
cooperation among Federal and State agencies having responsibility for
water and watershed management under that Act; and
`(E) provide enhanced forest resource data and support for
improved implementation of State forestry best management practices,
including--
`(i) designing and conducting effectiveness and implementation
studies; and
`(ii) meeting in-State water quality assessment needs, such as
the development of water quality models that correlate the management of
forest land to water quality measures and standards.
`(c) WATERSHED FORESTRY COST-SHARE PROGRAM-
`(1) ESTABLISHMENT- In carrying out the program, the Secretary shall
establish a watershed forestry cost-share program, to be administered by the
Secretary and implemented by State foresters, to provide grants and other
assistance for eligible programs and projects described in paragraph
(2).
`(2) ELIGIBLE PROGRAMS AND PROJECTS- A community, nonprofit group,
or landowner may receive a grant or other assistance under this subsection
to carry out a State forestry best management practices program or a
watershed forestry project if the program or project, as determined by the
Secretary--
`(A) is consistent with--
`(i) State nonpoint source assessment and management plan
objectives established under section 319 of the Federal Water Pollution
Control Act (33 U.S.C. 1329); and
`(ii) the cost-share requirements of this section;
and
`(B) is designed to address critical forest stewardship, watershed
protection, and restoration needs of a State through--
`(i) the use of trees and forests as solutions to water quality
problems in urban and agricultural areas;
`(ii) community-based planning, involvement, and action through
State, local and nonprofit partnerships;
`(iii) the application of and dissemination of information on
forestry best management practices relating to water
quality;
`(iv) watershed-scale forest management activities and
conservation planning; and
`(v) the restoration of wetland and stream side forests and
establishment of riparian vegetative buffers.
`(A) IN GENERAL- After taking into consideration the criteria
described in subparagraph (B), the Secretary shall allocate among States,
for award by State foresters under paragraph (4), the amounts made
available to carry out this subsection.
`(B) CRITERIA- The criteria referred to in subparagraph (A)
are--
`(i) the number of acres of forest land, and land that could be
converted to forest land, in each State;
`(ii) the nonpoint source assessment and management plans of
each State, as developed under section 319 of the Federal Water
Pollution Control Act (33 U.S.C. 1329);
`(iii) the acres of wetland forests that have been lost or
degraded or cases in which forests may play a role in restoring wetland
resources;
`(iv) the number of non-Federal forest landowners in each State;
and
`(v) the extent to which the priorities of States are designed
to achieve a reasonable range of the purposes of the program and, as a
result, contribute to the water-related goals of the United
States.
`(4) AWARD OF GRANTS AND ASSISTANCE-
`(A) IN GENERAL- In implementing the program under this
subsection, the State forester, in coordination with the State
Coordinating Committee established under section 19(b), shall provide
annual grants and cost-share assistance to communities, nonprofit groups,
and landowners to carry out eligible programs and projects described in
paragraph (2).
`(B) APPLICATION- A community, nonprofit group, or landowner that
seeks to receive cost-share assistance under this subsection shall submit
to the State forester an application, in such form and containing such
information as the State forester may prescribe, for the
assistance.
`(C) PRIORITIZATION- In awarding cost-share assistance under this
subsection, the Secretary shall give priority to eligible programs and
projects that are identified by the State foresters and the State
Stewardship Committees as having a greater need for
assistance.
`(D) AWARD- On approval by the Secretary of an application under
subparagraph (B), the State forester shall award to the applicant, from
funds allocated to the State under paragraph (3), such amount of
cost-share assistance as is requested in the application.
`(A) FEDERAL SHARE- The Federal share of the cost of carrying out
any eligible program or project under this subsection shall not exceed 75
percent, of which not more than 50 percent may be in the form of
assistance provided under this subsection.
`(B) NON-FEDERAL SHARE- The non-Federal share of the cost of
carrying out any eligible program or project under this subsection may be
provided in the form of cash, services, or in-kind
contributions.
`(d) WATERSHED FORESTER- A State may use a portion of the funds made
available to the State under subsection (e) to establish and fill a position
of `Watershed Forester' to lead State-wide programs and coordinate
watershed-level projects.
`(1) IN GENERAL- There are authorized to be appropriated to carry
out this section $20,000,000 for each of fiscal years 2002 through
2006.
`(2) ALLOCATION- Of the funds made available under paragraph
(1)--
`(A) 75 percent shall be used to carry out subsection (c);
and
`(B) 25 percent shall be used to carry out provisions of this
section other than subsection (c).'.
SEC. 813. SUBURBAN AND COMMUNITY FORESTRY AND OPEN SPACE
INITIATIVE.
The Cooperative Forestry Assistance Act of 1978 is amended by
inserting after section 7 (16 U.S.C. 2103c) the following:
`SEC. 7A. SUBURBAN AND COMMUNITY FORESTRY AND OPEN SPACE
INITIATIVE.
`(a) DEFINITIONS- In this section:
`(1) ELIGIBLE ENTITY- The term `eligible entity' means a State
(including a political subdivision) or nonprofit organization that the
Secretary determines under subsection (c)(1)(A)(ii) is eligible to receive a
grant under subsection (c)(2).
`(2) INDIAN TRIBE- The term `Indian tribe' has the meaning given the
term in section 4 of the Indian Self-Determination and Education Assistance
Act (25 U.S.C. 450b).
`(3) PRIVATE FOREST LAND- The term `private forest land' means land
that is--
`(A)(i) covered by trees; or
`(ii) suitable for growing trees, as determined by the
Secretary;
`(B) suburban, as determined by the Secretary; and
`(i) a private entity; or
`(4) PROGRAM- The term `program' means the Suburban and Community
Forestry and Open Space Initiative established by subsection (b).
`(5) SECRETARY- The term `Secretary' means the Secretary of
Agriculture, acting through the Chief of the Forest Service.
`(1) IN GENERAL- There is established within the Forest Service a
program to be known as the `Suburban and Community Forestry and Open Space
Initiative'.
`(2) PURPOSE- The purpose of the program is to provide assistance to
eligible entities to carry out projects and activities to--
`(A) conserve private forest land and maintain working forests in
suburban environments; and
`(B) provide communities a means by which to address significant
suburban sprawl.
`(1) IDENTIFICATION OF ELIGIBLE PRIVATE FOREST LAND-
`(A) IN GENERAL- The Secretary, in consultation with State
foresters or equivalent State officials and State or county planning
offices, shall establish criteria for--
`(i) the identification, subject to subparagraph (B), of private
forest land in each State that may be conserved under this section;
and
`(ii) the identification of eligible entities.
`(B) CONDITIONS FOR ELIGIBLE PRIVATE FOREST LAND- Private forest
land identified for conservation under subparagraph (A)(i) shall be land
that is--
`(i) located in an area that is affected, or threatened to be
affected, by significant suburban sprawl, as determined
by--
`(I) the appropriate State forester or equivalent State
official; and
`(II) the planning office of the State or county in which the
private forest land is located; and
`(ii) threatened by present or future conversion to nonforest
use.
`(A) PROJECTS AND ACTIVITIES-
`(i) IN GENERAL- In carrying out this section, the Secretary
shall award grants to eligible entities to carry out a project or
activity described in clause (ii).
`(ii) TYPES- A project or activity referred to in clause (i) is
a project or activity that--
`(I) is carried out to conserve private forest land and
contain significant suburban sprawl; and
`(II) provides for guaranteed public access to land on which
the project or activity is carried out, unless the appropriate State
forester or equivalent State official and the State or county planning
office request, and provide justification for the request, that the
requirement be waived.
`(B) APPLICATION; STEWARDSHIP PLAN- An eligible entity that seeks
to receive a grant under this section shall submit for
approval--
`(i) to the Secretary, in such form as the Secretary shall
prescribe, an application for the grant (including a description of any
private forest land to be conserved using funds from the grant);
and
`(ii) to the State forester or equivalent State official, a
stewardship plan that describes the manner in which any private forest
land to be conserved using funds from the grant will be managed in
accordance with this section.
`(C) APPROVAL OR DISAPPROVAL-
`(i) IN GENERAL- Subject to clause (ii), as soon as practicable
after the date on which the Secretary receives an application under
subparagraph (B)(i) or a resubmission under subclause (II)(bb), the
Secretary shall--
`(I)(aa) approve the application; and
`(bb) award a grant to the applicant; or
`(II)(aa) disapprove the application; and
`(bb) provide the applicant a statement that describes the
reasons why the application was disapproved (including a deadline by
which the applicant may resubmit the application).
`(ii) PRIORITY- In awarding grants under this section, the
Secretary shall give priority to applicants that propose to fund
projects and activities that promote, in addition to the primary
purposes of conserving private forest land and containing significant
suburban sprawl--
`(I) the sustainable management of private forest
land;
`(II) community and school education programs and curricula
relating to sustainable forestry; and
`(III) community involvement in determining the objectives for
projects or activities that are funded under this
section.
`(A) IN GENERAL- The amount of a grant awarded under this section
to carry out a project or activity shall not exceed 50 percent of the
total cost of the project or activity.
`(B) ASSURANCES- As a condition of receipt of a grant under this
section, an eligible entity shall provide to the Secretary such assurances
as the Secretary determines are sufficient to demonstrate that the share
of the cost of each project or activity that is not funded by the grant
awarded under this section has been secured.
`(C) FORM- The share of the cost of carrying out any project or
activity described in subparagraph (A) that is not funded by a grant
awarded under this section may be provided in cash or in
kind.
`(d) USE OF GRANT FUNDS FOR PURCHASES OF LAND OR EASEMENTS-
`(A) IN GENERAL- Except as provided in subparagraph (B), funds
made available, and grants awarded, under this section may be used to
purchase private forest land or interests in private forest land
(including conservation easements) only from willing sellers at fair
market value.
`(B) SALES AT LESS THAN FAIR MARKET VALUE- A sale of private
forest land or an interest in private forest land at less than fair market
value shall be permitted only on certification by the landowner that the
sale is being entered into willingly and without coercion.
`(2) TITLE- Title to private forest land or an interest in private
forest land purchased under paragraph (1) may be held, as determined
appropriate by the Secretary, by--
`(A) a State (including a political subdivision of a State);
or
`(B) a nonprofit organization.
`(e) AUTHORIZATION OF APPROPRIATIONS- There are authorized to be
appropriated to carry out this section--
`(1) $50,000,000 for fiscal year 2003; and
`(2) such sums as are necessary for each fiscal year
thereafter.'.
SEC. 814. GENERAL PROVISIONS.
Section 13 of the Cooperative Forestry Assistance Act of 1978 (16
U.S.C. 2109) is amended by striking subsection (f) and inserting the
following:
`(f) GRANTS, CONTRACTS, AND OTHER AGREEMENTS-
`(1) IN GENERAL- In accordance with paragraph (2), the Secretary may
make such grants and enter into such contracts, agreements, or other
arrangements as the Secretary determines are necessary to carry out this
Act.
`(2) ASSISTANCE- Notwithstanding any other provision of this Act,
the Secretary, with the concurrence of the applicable State forester or
equivalent State official, may provide assistance under this Act directly to
any public or private entity, organization, or individual--
`(B) by entering into a contract or cooperative
agreement.'.
SEC. 815. STATE FOREST STEWARDSHIP COORDINATING COMMITTEES.
Section 19(b) of the Cooperative Forestry Assistance Act of 1978 (16
U.S.C. 2113(b)) is amended--
(1) in paragraph (1)(B)(i), by inserting `United States Fish and
Wildlife Service,' before `Forest Service'; and
(A) in subparagraph (C), by striking `and' at the
end;
(B) in subparagraph (D), by striking the period at the end and
inserting `; and'; and
(C) by adding at the end the following:
`(E) submit to the Secretary, the Committee on Agriculture of the
House of Representatives and the Committee on Agriculture, Nutrition, and
Forestry of the Senate, an annual report that provides--
`(i) the list of members on the Committee described in paragraph
(1)(B); and
`(ii) for those members that may be included on the Committee,
but are not included because a determination that it is not practicable
to include the members has been made, an explanation of the reasons for
that determination.'.
SEC. 816. USDA NATIONAL AGROFORESTRY CENTER.
(a) IN GENERAL- Section 1243 of the Food, Agriculture, Conservation,
and Trade Act of 1990 (16 U.S.C. 1642 note; Public Law 101-624) is
amended--
(1) by striking the section heading and inserting the
following:
`SEC. 1243. USDA NATIONAL AGROFORESTRY CENTER.';
(A) by striking `SEMIARID' and inserting `USDA NATIONAL';
and
(B) by striking `Semiarid' and inserting `USDA
National'.
(b) PROGRAM- Section 1243(b) of the Food, Agriculture, Conservation,
and Trade Act of 1990 (16 U.S.C. 1642 note; Public Law 101-624) is
amended--
(1) by inserting `the Institute of Tropical Forestry and the
Institute of Pacific Islands Forestry of the Forest Service,' after
`entities,';
(2) in paragraph (1), by striking `on semiarid lands';
(3) in paragraph (3), by striking `from semiarid land';
(4) by striking paragraph (4) and inserting the
following:
`(4) collect information on the design and installation of forested
riparian and upland buffers to--
`(A) protect water quality; and
`(B) manage water flow;';
(5) in paragraphs (6) and (7), by striking `on semiarid lands' each
place it appears;
(6) by striking paragraph (8) and inserting the
following:
`(8) provide international leadership in the worldwide development
and exchange of agroforestry practices;';
(7) in paragraph (9), by striking `on semiarid lands';
(8) in paragraph (10), by striking `and' at the end;
(9) in paragraph (11), by striking the period at the end and
inserting `; and'; and
(10) by adding at the end the following:
`(12) quantify the carbon storage potential of agroforestry
practices such as--
`(B) forested riparian buffers;
`(C) silvopasture timber and grazing systems; and
SEC. 817. OFFICE OF TRIBAL RELATIONS.
The Cooperative Forestry Assistance Act of 1978 is amended by
inserting after section 19 (16 U.S.C. 2113) the following:
`SEC. 19A. OFFICE OF TRIBAL RELATIONS.
`(a) DEFINITIONS- In this section:
`(1) INDIAN TRIBE- The term `Indian tribe' has the meaning given the
term in section 4 of the Indian Self-Determination and Education Assistance
Act (25 U.S.C. 450b).
`(2) OFFICE- The term `Office' means the Office of Tribal Relations
established under subsection (b)(1).
`(3) SECRETARY- The term `Secretary' means the Secretary of
Agriculture, acting through the Chief of the Forest Service.
`(1) IN GENERAL- The Secretary shall establish within the Forest
Service the Office of Tribal Relations.
`(2) DIRECTOR- The Office shall be headed by a Director, who
shall--
`(A) be appointed by the Secretary, in consultation with
interested Indian tribes; and
`(B) report directly to the Secretary.
`(3) ADMINISTRATIVE SUPPORT- The Secretary shall ensure, to the
maximum extent practicable, that adequate staffing and funds are made
available to enable the Director to carry out the duties described in
subsection (c).
`(c) DUTIES OF THE DIRECTOR-
`(1) IN GENERAL- The Director shall--
`(A) provide advice to the Secretary on all issues, policies,
actions, and programs of the Forest Service that affect Indian tribes,
including--
`(i) consultation with tribal governments;
`(ii) programmatic review for equitable tribal
participation;
`(iii) monitoring and evaluation of relations between the Forest
Service and Indian tribes;
`(iv) the coordination and integration of programs of the Forest
Service that affect, or are of interest to, Indian
tribes;
`(v) training of Forest Service personnel for competency in
tribal relations; and
`(vi) the development of legislation affecting Indian
tribes;
`(B) coordinate organizational responsibilities within the
administrative units of the Forest Service to ensure that matters
affecting the rights and interests of Indian tribes are handled in a
manner that is--
`(ii) responsive to tribal needs; and
`(iii) consistent with policy guidelines of the Forest
Service;
`(C)(i) develop generally applicable policies and procedures of
the Forest Service pertaining to Indian tribes; and
`(ii) monitor the application of those policies and procedures
throughout the administrative regions of the Forest Service;
`(D) provide such information or guidance to personnel of the
Forest Service that are responsible for tribal relations as is required,
as determined by the Secretary;
`(E) exercise such direct administrative authority pertaining to
tribal relations programs as may be delegated by the
Secretary;
`(F) for the purpose of coordinating programs and activities of
the Forest Service with programs and actions of other agencies or
departments that affect Indian tribes, consult with--
`(i) other agencies of the Department of Agriculture, including
the Natural Resources Conservation Service; and
`(ii) other Federal agencies, including--
`(I) the Department of the Interior; and
`(II) the Environmental Protection Agency;
`(G) submit to the Secretary an annual report on the status of
relations between the Forest Service and Indian tribes that includes, at a
minimum--
`(i) an examination of the participation of Indian tribes in
programs administered by the Secretary;
`(ii) a description of the status of initiatives being carried
out to improve working relationships with Indian tribes;
and
`(iii) recommendations for improvements or other adjustments to
operations of the Forest Service that would be beneficial in
strengthening working relationships with Indian tribes;
and
`(H) carry out such other duties as the Secretary may
assign.
`(d) COORDINATION- In carrying out this section, the Office and other
offices within the Forest Service shall consult on matters involving the
rights and interests of Indian tribes.'.
SEC. 818. ASSISTANCE TO TRIBAL GOVERNMENTS.
The Cooperative Forestry Assistance Act of 1978 (16 U.S.C. 2101 et
seq.) is amended by adding at the end the following:
`SEC. 21. ASSISTANCE TO TRIBAL GOVERNMENTS.
`(a) DEFINITION OF INDIAN TRIBE- In this section, the term `Indian
tribe' has the meaning given the term in section 4 of the Indian
Self-Determination and Education Assistance Act (25 U.S.C. 450b).
`(b) ESTABLISHMENT- The Secretary may provide financial, technical,
educational and related assistance to Indian tribes for--
`(1) tribal consultation and coordination with the Forest Service on
issues relating to--
`(A) tribal rights and interests on National Forest System land
(including national forests and national grassland);
`(B) coordinated or cooperative management of resources shared by
the Forest Service and Indian tribes; and
`(C) provision of tribal traditional, cultural, or other expertise
or knowledge;
`(2) projects and activities for conservation education and
awareness with respect to forest land under the jurisdiction of Indian
tribes;
`(3) technical assistance for forest resources planning, management,
and conservation on land under the jurisdiction of Indian tribes;
and
`(4) the acquisition by Indian tribes, from willing sellers, of
conservation interests (including conservation easements) in forest land and
resources on land under the jurisdiction of the Indian tribes.
`(1) IN GENERAL- Not later than 18 months after the date of
enactment of this section, the Secretary shall promulgate regulations to
implement subsection (b) (including regulations for determining the
distribution of assistance under that subsection).
`(2) CONSULTATION- In developing regulations under paragraph (1),
the Secretary shall engage in full, open, and substantive consultation with
Indian tribes and representatives of Indian tribes.
`(d) COORDINATION WITH THE SECRETARY OF THE INTERIOR- The Secretary
shall coordinate with the Secretary of the Interior during the establishment,
implementation, and administration of subsection (b) to ensure that programs
under that subsection--
`(1) do not conflict with tribal programs provided under the
authority of the Department of the Interior; and
`(2) meet the goals of the Indian tribes.
`(e) AUTHORIZATION OF APPROPRIATIONS- There are authorized to be
appropriated to carry out this section such sums as are necessary for fiscal
year 2002 and each fiscal year thereafter.'.
SEC. 819. SUDDEN OAK DEATH SYNDROME.
(a) FINDINGS- Congress finds that--
(1) tan oak, coast live oak, Shreve's oak, and black oak trees are
among the most beloved features of the topography of California and the
Pacific Northwest and efforts should be made to protect those trees from
disease;
(2) the die-off of those trees, as a result of the exotic
Phytophthora fungus, is approaching epidemic proportions;
(3) very little is known about the new species of Phytophthora, and
scientists are struggling to understand the causes of sudden oak death
syndrome, the methods of transmittal, and how sudden oak death syndrome can
best be treated;
(4) the Phytophthora fungus has been found on--
(A) Rhododendron plants in nurseries in California;
and
(B) wild huckleberry plants, potentially endangering the
commercial blueberry and cranberry industries;
(5) sudden oak death syndrome threatens to create major economic and
environmental problems in California, the Pacific Northwest, and other
regions, including--
(A) the increased threat of fire and fallen trees;
(B) the cost of tree removal and a reduction in property values;
and
(C) loss of revenue due to--
(i) restrictions on imports of oak products and nursery stock;
and
(ii) the impact on the commercial rhododendron, blueberry, and
cranberry industries; and
(6) Oregon and Canada have imposed an emergency quarantine on the
importation of oak trees, oak products, and certain nursery plants from
California.
(b) RESEARCH, MONITORING, AND TREATMENT OF SUDDEN OAK DEATH SYNDROME-
(1) IN GENERAL- The Secretary of Agriculture (referred to in this
section as the `Secretary') shall carry out a sudden oak death syndrome
research, monitoring, and treatment program to develop methods to control,
manage, or eradicate sudden oak death syndrome from oak trees on public and
private land.
(2) RESEARCH, MONITORING, AND TREATMENT ACTIVITIES- In carrying out
the program under paragraph (1), the Secretary may--
(A) conduct open space, roadside, and aerial
surveys;
(B) provide monitoring technique workshops;
(C) develop baseline information on the distribution, condition,
and mortality rates of oaks in California and the Pacific
Northwest;
(D) maintain a geographic information system
database;
(E) conduct research activities, including research on forest
pathology, Phytophthora ecology, forest insects associated with oak
decline, urban forestry, arboriculture, forest ecology, fire management,
silviculture, landscape ecology, and epidemiology;
(F) evaluate the susceptibility of oaks and other vulnerable
species throughout the United States; and
(G) develop and apply treatments.
(c) MANAGEMENT, REGULATION, AND FIRE PREVENTION-
(1) IN GENERAL- The Secretary shall conduct sudden oak death
syndrome management, regulation, and fire prevention activities to reduce
the threat of fire and fallen trees killed by sudden oak death
syndrome.
(2) MANAGEMENT, REGULATION, AND FIRE PREVENTION ACTIVITIES- In
carrying out paragraph (1), the Secretary may--
(A) conduct hazard tree assessments;
(B) provide grants to local units of government for hazard tree
removal, disposal and recycling, assessment and management of restoration
and mitigation projects, green waste treatment facilities, reforestation,
resistant tree breeding, and exotic weed control;
(C) increase and improve firefighting and emergency response
capabilities in areas where fire hazard has increased due to oak
die-off;
(D) treat vegetation to prevent fire, and assessment of fire risk,
in areas heavily infected with sudden oak death syndrome;
(E) conduct national surveys and inspections of--
(i) commercial rhododendron and blueberry nurseries;
and
(ii) native rhododendron and huckleberry
plants;
(F) provide for monitoring of oaks and other vulnerable species
throughout the United States to ensure early detection; and
(G) provide diagnostic services.
(d) EDUCATION AND RESEARCH-
(1) IN GENERAL- The Secretary shall conduct education and outreach
activities to make information available to the public on sudden death oak
syndrome.
(2) EDUCATION AND OUTREACH ACTIVITIES- In carrying out paragraph
(1), the Secretary may--
(A) develop and distribute educational materials for homeowners,
arborists, urban foresters, park managers, public works personnel,
recreationists, nursery workers, landscapers, naturists, firefighting
personnel, and other individuals, as the Secretary determines
appropriate;
(B) design and maintain a website to provide information on sudden
oak death syndrome; and
(C) provide financial and technical support to States, local
governments, and nonprofit organizations providing information on sudden
oak death syndrome.
(e) SUDDEN OAK DEATH SYNDROME ADVISORY COMMITTEE-
(A) IN GENERAL- The Secretary shall establish a Sudden Oak Death
Syndrome Advisory Committee (referred to in this subsection as the
`Committee') to assist the Secretary in carrying out this
section.
(i) COMPOSITION- The Committee shall consist
of--
(I) 1 representative of the Animal and Plant Health Inspection
Service, to be appointed by the Administrator of the Animal and Plant
Health Inspection Service;
(II) 1 representative of the Agricultural Research Service, to
be appointed by the Administrator of the Agricultural Research
Service;
(III) 1 representative of the Forest Service, to be appointed
by the Chief of the Forest Service;
(IV) 2 individuals appointed by the Secretary from each of the
States affected by sudden oak death syndrome; and
(V) any individual, to be appointed by the Secretary, in
consultation with the Governors of the affected States, that the
Secretary determines--
(aa) has an interest or expertise in sudden oak death syndrome;
and
(bb) would contribute to the Committee.
(ii) DATE OF APPOINTMENTS- The appointment of a member of the
Committee shall be made not later than 90 days after the date of
enactment of this Act.
(C) INITIAL MEETING- Not later than 30 days after the date on
which all members of the Committee have been appointed, the Committee
shall hold the initial meeting of the Committee.
(A) IMPLEMENTATION PLAN- The Committee shall prepare a
comprehensive implementation plan to address the management, control, and
eradication of sudden oak death syndrome.
(i) INTERIM REPORT- Not later than 1 year after the date of
enactment of this Act, the Committee shall submit to Congress the
implementation plan prepared under paragraph (1).
(ii) FINAL REPORT- Not later than 3 years after the date of
enactment of this Act, the Committee shall submit to Congress a report
that contains--
(I) a summary of the activities of the
Committee;
(II) an accounting of funds received and expended by the
Committee; and
(III) findings and recommendations of the
Committee.
(f) AUTHORIZATION OF APPROPRIATIONS- There are authorized to be
appropriated for each of fiscal years 2002 through 2006--
(1) to carry out subsection (b), $7,500,000, of which not more than
$1,500,000 shall be used for treatment;
(2) to carry out subsection (c), $6,000,000;
(3) to carry out subsection (d), $500,000; and
(4) to carry out subsection (e), $250,000.
SEC. 820. INDEPENDENT INVESTIGATION OF FIREFIGHTER FATALITIES.
In the case of each fatality of an officer or employee of the Forest
Service that occurs due to wildfire entrapment or burnover, the Inspector
General of the Department of Agriculture shall--
(1) conduct an investigation that does not rely on, and is
completely independent of, any investigation of the fatality that is
conducted by the Forest Service; and
(2) submit to Congress and the Secretary of Agriculture a report on
the fatality.
SEC. 821. ADAPTIVE ECOSYSTEM RESTORATION OF ARIZONA AND NEW MEXICO
FORESTS AND WOODLANDS.
(a) FINDINGS- Congress finds that--
(1) fire suppression, logging, and overgrazing have degraded the
ecological conditions of forests and woodlands in Arizona and New
Mexico;
(2) some of those forests and woodlands contain unnaturally high
quantities of biomass that are subject to large, high intensity wildfires
that endanger human lives and livelihoods and ecological
sustainability;
(3) degraded forests and woodlands have led to--
(A) declining biodiversity;
(B) decreased stream and spring flows;
(C) impaired watershed values;
(D) increased susceptibility to insects and
diseases;
(E) increases in mortality in the oldest trees; and
(F) degraded habitats for wildlife and humans;
(4) healthy forest and woodland ecosystems--
(A) minimize the threat of unnatural wildfire;
(B) improve wildlife habitat;
(C) increase tree, grass, forb, and shrub
productivity;
(D) enhance watershed values; and
(E) provide a basis for economically and environmentally
sustainable uses;
(5) forest and woodland treatments intended to restore degraded
ecosystems should be developed using the best available scientific
knowledge;
(6) treatments not supported by sound science may fail to achieve
long-term ecosystem health and resource restoration objectives;
(7)(A) scientific research must be integrated with ongoing land
management activities; and
(B) restoration techniques must be continually reevaluated and
adapted to reflect new knowledge and to meet the practical needs of land
managers and communities developing and implementing restoration treatments;
and
(8) scientific knowledge must be translated and transferred to land
managers, resource specialists, communities, and stakeholders that
collaborate in the development and implementation of those
treatments.
(b) PURPOSES- The purposes of this section are--
(A) improve the ecological health, resource values, and
sustainability of forest and woodland ecosystems in Arizona and New
Mexico; and
(B) reduce the threat of unnatural wildfire, disease, and insect
infestations in those States;
(2) to restore ecosystem structure and function so that ecosystems
will--
(A) support biodiversity;
(B) enhance watershed values;
(C) increase water flow to seeps and springs; and
(D) increase tree, grass, forb, and shrub vigor and growth to
provide sustainable economic activities for current and future
generations;
(3) to develop the scientific knowledge to inform the design of
adaptive ecosystem management restoration treatments that will restore
long-term ecological health to forests and woodlands in the States;
and
(4) to encourage collaboration among land management agencies,
communities, and interest groups in developing, implementing, and monitoring
adaptive ecosystem management restoration treatments that are ecologically
sound, economically viable, and socially responsible.
(c) DEFINITIONS- In this section:
(1) ADAPTIVE ECOSYSTEM MANAGEMENT- The term `adaptive ecosystem
management' means management practiced by engaging researchers, land
managers, resource specialists, policy analysts, decisionmakers, nonprofit
organizations, and communities in conducting collaborative large-scale
management experiments that seek to restore ecosystem health while seeking
unexplored opportunities to enhance natural resource values.
(2) ECOLOGICAL INTEGRITY- The term `ecological integrity' includes a
critical range of variability in biodiversity, ecological processes and
structures, regional and historical context, and sustainable forestry
practices in forests and woodlands.
(3) ECOLOGICAL RESTORATION- The term `ecological restoration' means
the process of assisting the recovery and management of ecological
integrity.
(4) INSTITUTE- The term `Institute' means an institute established
under subsection (d)(1).
(5) LAND MANAGEMENT AGENCY- The term `land management agency' means
a Federal, State, local, or tribal land management agency.
(6) PRACTITIONER- The term `practitioner' means a person or entity
that practices natural resource management.
(7) SECRETARIES- The term `Secretaries' means--
(A) the Secretary of Agriculture, acting through the Chief of the
Forest Service; and
(B) the Secretary of the Interior.
(8) STATE- The term `State' means--
(A) the State of Arizona; and
(B) the State of New Mexico.
(d) ESTABLISHMENT OF INSTITUTES-
(1) IN GENERAL- The Secretary of Agriculture, in consultation with
the Secretary of the Interior, shall establish--
(A) an Ecological Restoration Institute in Flagstaff, Arizona;
and
(B) an Institute at a college or university in the State of New
Mexico selected by the Secretary of Agriculture, in consultation with the
Secretary of the Interior.
(2) SCOPE OF RESEARCH; TRANSFER OF INFORMATION- Each Institute
shall--
(A) plan, conduct, or otherwise arrange for applied ecosystem
management research that--
(i) assists in answering questions identified by land managers,
practitioners, and others concerned with land management;
and
(ii) will be useful in the development and implementation of
practical, science-based, ecological restoration
treatments;
(B) translate scientific knowledge into communication tools that
are easily understood by land managers, natural resource professionals,
and concerned citizens; and
(C) provide similar information to land managers and other
interested persons.
(3) COOPERATION- Each Institute shall cooperate with--
(A) researchers at colleges and universities in the States that
have demonstrated capabilities for research, information dissemination,
continuing education, and undergraduate and graduate training, to develop
broad capacity to implement ecological restoration in forest and woodland
ecosystems; and
(B) other organizations and entities in the region (such as the
Western Governors' Association, Southwest Strategy group, the Southwest
Fire Management Board, and the Arizona Governor's Forest Health/Fire Plan
Advisory Committee), to increase and accelerate efforts to restore forest
ecosystem health and abate unnatural and unwanted wildfire.
(4) APPROVAL OF ANNUAL WORK PLAN; REQUISITE ASSURANCES- As a
condition to the receipt of funds made available under subsection (g), for
each fiscal year, each Institute shall submit to the Secretary of
Agriculture, for review by the Secretary of Agriculture, in consultation
with the Secretary of the Interior, an annual work plan that includes
assurances, satisfactory to the Secretaries, that the proposed work will
serve the information needs of--
(C) concerned citizens and communities; and
(e) COOPERATION BETWEEN INSTITUTES AND FEDERAL AGENCIES- In carrying
out this section, the Secretary of Agriculture, in consultation with the
Secretary of the Interior--
(1) shall encourage other Federal departments, agencies, and
instrumentalities to use and take advantage of, on a cooperative basis, the
expertise and capabilities that are available through the
Institutes;
(2) shall encourage cooperation and coordination with other Federal
programs relating to--
(A) ecological restoration; and
(B) wildfire risk reduction;
(3) may (notwithstanding chapter 63 of title 31, United States
Code)--
(A) enter into contracts, cooperative agreements, interagency
personal agreements; and
(B) carry out other transactions;
(4) may accept funds from other Federal departments, agencies, and
instrumentalities to supplement or fully fund grants made, and contracts
entered into, by the Secretaries;
(5) may promulgate such regulations as the Secretaries consider
appropriate;
(6) may support a program of internships for qualified individuals
at the undergraduate and graduate levels to carry out the educational and
training objectives of this section; and
(7) shall encourage professional education and public information
activities relating to the purposes of this section.
(f) MONITORING AND EVALUATION-
(1) IN GENERAL- Not later than 5 years after the date of enactment
of this Act, and every 5 years thereafter, the Secretary, in consultation
with the Secretary of the Interior, shall complete a detailed evaluation of
each Institute--
(A) to ensure, to the maximum extent practicable, that the
research, communication tools, and information transfer activities of the
Institute meet the needs of--
(iii) concerned citizens and communities; and
(B) to determine whether continued provision of Federal assistance
to the Institute is warranted.
(2) STANDARDS FOR RECEIPT OF FINANCIAL ASSISTANCE- If, as a result
of an evaluation under paragraph (1), the Secretary, in consultation with
the Secretary of the Interior, determines that an Institute does not qualify
for further Federal assistance under this section, the Institute shall
receive no further Federal assistance under this section until such time as
the qualifications of the Institute are reestablished to the satisfaction of
the Secretaries.
(g) AUTHORIZATION OF APPROPRIATIONS- There is authorized to be
appropriated to carry out this section $10,000,000 for each fiscal
year.
TITLE IX--ENERGY
SEC. 901. FINDINGS.
(1) there are many opportunities for the agricultural sector and
rural areas to produce renewable energy and increase energy
efficiency;
(2) investments in renewable energy and energy
efficiency--
(A) enhance the energy security and independence of the United
States;
(B) increase farmer and rancher income;
(C) promote rural economic development;
(D) provide environmental and public health benefits such as
cleaner air and water; and
(E) improve electricity grid reliability, thereby reducing the
likelihood of blackouts and brownouts, particularly during peak usage
periods;
(3) the public strongly supports renewable energy generation and
energy efficiency improvements as an important component of a national
energy strategy;
(4)(A) the Federal Government is the country's largest consumer of a
vast array of products, spending in excess of $200,000,000,000 per
year;
(B) purchases and use of products by the Federal Government have a
significant effect on the environment; and
(C) accordingly, the Federal Government should lead the way in
purchasing biobased products so as to minimize environmental impacts while
supporting domestic producers of biobased products;
(5) the agricultural sector is a leading producer of biobased
products to meet domestic and international needs;
(6) agriculture can play a significant role in the development of
fuel cell and hydrogen-based energy technologies, which are critical
technologies for a clean energy future;
(7)(A) wind energy is 1 of the fastest growing clean energy
technologies; and
(B) there are tremendous economic development and environmental
quality benefits to be achieved by developing both large-scale and
small-scale wind power projects on farms and in rural
communities;
(8) farm-based renewable energy generation can become one of the
major cash crops of the United States, improving the livelihoods of hundreds
of thousands of family farmers, ranchers, and others and revitalizing rural
communities;
(9)(A) evidence continues to mount that increases in atmospheric
concentrations of greenhouse gases are contributing to global climate
change; and
(B) agriculture can help in climate change mitigation
by--
(i) storing carbon in soils, plants, and forests;
(ii) producing biofuels, chemicals, and power to replace fossil
fuels and petroleum-based products; and
(iii) reducing emissions by capturing gases from animal feeding
operations, changing agricultural land practices, and becoming more energy
efficient;
(10) because agricultural production is energy-intensive, it is
incumbent on the Federal Government to aid the agricultural sector in
reducing energy consumption and energy costs;
(11)(A) one way to help farmers, ranchers, and others reduce energy
use is through professional energy audits;
(B) energy audits provide recommendations for improved energy
efficiency that, when acted on, offer an effective means of reducing overall
energy use and saving money; and
(C) energy savings of 10 to 30 percent can typically be achieved,
and greater savings are often realized; and
(12) rural electric utilities are often geographically well situated
to develop renewable and distributed energy supplies, enabling the utilities
to diversify their energy portfolios and afford their members or customers
alternative energy sources, which many such members and customers
desire.
SEC. 902. CONSOLIDATED FARM AND RURAL DEVELOPMENT ACT.
The Consolidated Farm and Rural Development Act (as amended by section
649) is amended by adding at the end the following:
`Subtitle L--Clean Energy
`SEC. 388A. DEFINITIONS.
`(A) IN GENERAL- The term `biomass' means any organic material
that is available on a renewable or recurring basis.
`(B) INCLUSIONS- The term `biomass' includes--
`(i) dedicated energy crops;
`(ii) trees grown for energy production;
`(iii) wood waste and wood residues;
`(iv) plants (including aquatic plants, grasses, and
agricultural crops);
`(vii) animal wastes and other waste materials;
and
`(C) EXCLUSIONS- The term `biomass' does not
include--
`(i) paper that is commonly recycled; or
`(ii) unsegregated garbage.
`(2) RENEWABLE ENERGY- The term `renewable energy' means energy
derived from a wind, solar, biomass, geothermal, or hydrogen
source.
`(3) RURAL SMALL BUSINESS- The term `rural small business' has the
meaning that the Secretary shall prescribe by regulation.
`CHAPTER 1--BIOBASED PRODUCT DEVELOPMENT
`SEC. 388B. BIOBASED PRODUCT PURCHASING REQUIREMENT.
`(a) DEFINITIONS- In this section:
`(1) ADMINISTRATOR- The term `Administrator' means the Administrator
of the Environmental Protection Agency.
`(2) BIOBASED PRODUCT- The term `biobased product' means a
commercial or industrial product, as determined by the Secretary (other than
food or feed), that uses biological products or renewable domestic
agricultural materials (including plant, animal, and marine materials) or
forestry materials.
`(3) ENVIRONMENTALLY PREFERABLE- The term `environmentally
preferable', with respect to a biobased product, refers to a biobased
product that has a lesser or reduced effect on human health and the
environment when compared with competing nonbiobased products that serve the
same purpose.
`(b) BIOBASED PRODUCT PURCHASING-
`(1) MANDATORY PURCHASING REQUIREMENT FOR LISTED BIOBASED PRODUCTS-
`(A) IN GENERAL- Except as provided in subparagraph (B), not later
than 180 days after the date of enactment of this subtitle, the head of
each Federal agency shall ensure that, in purchasing any product, the
Federal agency purchases a biobased product, rather than a comparable
nonbiobased product, if the biobased product is listed on the list of
biobased products published under subsection (c)(1).
`(B) BIOBASED PRODUCT NOT REASONABLY COMPARABLE- A Federal agency
shall not be required to purchase a biobased product under subparagraph
(A) if the purchasing employee submits to the Secretary and the
Administrator of the Office of Federal Procurement Policy a written
determination that the biobased product is not reasonably comparable to
nonbiobased products in price, performance, or availability.
`(C) CONFLICTING REQUIREMENTS- The Secretary and the Administrator
shall jointly promulgate regulations with which Federal agencies shall
comply in cases of a conflict between the biobased product purchasing
requirement under subparagraph (A) and a purchasing requirement under any
other provision of law.
`(2) PURCHASING OF NONLISTED BIOBASED PRODUCTS- The head of each
Federal agency is encouraged to purchase, to the maximum extent practicable,
available biobased products that are not listed on the list of biobased
products published under subsection (c)(1) when the Federal agency is not
required to purchase a biobased product that is on the list.
`(c) ADMINISTRATIVE ACTION-
`(1) LIST OF BIOBASED PRODUCTS-
`(A) IN GENERAL- Not later than 180 days after the date of
enactment of this subtitle, and annually thereafter, the Secretary, in
consultation with the Administrator and the Director of the National
Institute of Standards and Technology, shall publish a list of biobased
products.
`(B) ENVIRONMENTALLY PREFERABLE BIOBASED PRODUCTS- The Secretary
shall not include on the list under paragraph (1) biobased products that
are not environmentally preferable, as determined by the
Secretary.
`(C) GRANTS- The Secretary may award grants to, or enter into
contracts or cooperative agreements with, eligible persons, businesses, or
institutions (as determined by the Secretary) to assist in collecting data
concerning the evaluation of and lifecycle analyses of biobased products
for use in making the determinations necessary to carry out this
paragraph.
`(2) GUIDANCE- Not later than 240 days after the date of enactment
of this subtitle, the Office of Federal Procurement Policy and Federal
Acquisition Regulation Council shall make the Federal Acquisition Regulation
consistent with subsection (b).
`(d) EDUCATION AND OUTREACH PROGRAM- The Secretary, in cooperation
with the Defense Acquisition University and the Federal Acquisition Institute,
shall conduct education programs for all Federal procurement officers
regarding biobased products and the requirements of subsection (b).
`(1) IN GENERAL- The Secretary shall develop a program, similar to
the Energy Star program of the Department of Energy and the Environmental
Protection Agency, under which the Secretary authorizes producers of
environmentally preferable biobased products to use a label that identifies
the products as environmentally preferable biobased products.
`(2) ENVIRONMENTALLY PREFERABLE BIOBASED PRODUCTS- The Secretary
shall monitor and take appropriate action regarding the use of labels under
paragraph (1) to ensure that the biobased products using the labels do not
include biobased products that are not environmentally preferable, as
determined by the Secretary.
`(3) CONTRACTING- In carrying out paragraph (1), the Secretary may
contract with appropriate entities with expertise in product labeling and
standard setting.
`(f) GOAL- It shall be the goal of each Federal agency for each fiscal
year to purchase biobased products of an aggregate value that is not less than
5 percent of the aggregate value of all products purchased by the Federal
agency during the preceding fiscal year.
`(g) REPORTS- As soon as practicable after the end of each fiscal
year, the Secretary and the Office of Federal Procurement Policy shall jointly
submit to Congress an annual report that, for the fiscal year, describes the
extent of--
`(1) compliance by each Federal agency with subsection (b);
and
`(2) the success of each Federal agency in achieving the goal
established under subsection (f).
`(1) IN GENERAL- Not later than 30 days after the date of enactment
of this subtitle, and on October 1, 2002, and each October 1 thereafter
through October 1, 2005, out of any funds in the Treasury not otherwise
appropriated, the Secretary of the Treasury shall transfer to the Secretary
to carry out this section $2,000,000, to remain available until
expended.
`(2) RECEIPT AND ACCEPTANCE- The Secretary shall be entitled to
receive, shall accept, and shall use to carry out this section the funds
transferred under paragraph (1), without further appropriation.
`SEC. 388C. BIOREFINERY DEVELOPMENT GRANTS.
`(a) PURPOSE- The purpose of this section is to assist in the
development of new and emerging technologies for the conversion of biomass
into petroleum substitutes, so as to--
`(1) develop transportation and other fuels and chemicals from
renewable sources;
`(2) reduce the dependence of the United States on imported
oil;
`(3) reduce greenhouse gas emissions;
`(4) diversify markets for raw agricultural and forestry products;
and
`(5) create jobs and enhance the economic development of the rural
economy.
`(b) DEFINITIONS- In this section:
`(1) ADVISORY COMMITTEE- The term `Advisory Committee' means the
Biomass Research and Development Technical Advisory Committee established by
section 306 of the Biomass Research and Development Act of 2000 (7 U.S.C.
7624 note; Public Law 106-224).
`(2) BIOREFINERY- The term `biorefinery' means equipment and
processes that--
`(A) convert biomass into fuels and chemicals; and
`(B) may produce electricity.
`(3) BOARD- The term `Board' means the Biomass Research and
Development Board established by section 305 of the Biomass Research and
Development Act of 2000 (7 U.S.C. 7624 note; Public Law 106-224).
`(4) INDIAN TRIBE- The term `Indian tribe' has the meaning given the
term in section 4 of the Indian Self-Determination and Education Assistance
Act (25 U.S.C. 450b).
`(c) GRANTS- The Secretary shall award grants to eligible entities to
assist in paying the cost of development and construction of biorefineries to
carry out projects to demonstrate the commercial viability of 1 or more
processes for converting biomass to fuels or chemicals.
`(d) ELIGIBLE ENTITIES- A corporation, farm cooperative, association
of farmers, national laboratory, university, State energy agency or office,
Indian tribe, or consortium comprised of any of those entities shall be
eligible to receive a grant under subsection (c).
`(e) COMPETITIVE BASIS FOR AWARDS-
`(1) IN GENERAL- The Secretary shall award grants under subsection
(c) on a competitive basis in consultation with the Board and Advisory
Committee.
`(A) IN GENERAL- In selecting projects to receive grants under
subsection (c), the Secretary--
`(i) shall select projects based on the likelihood that the
projects will demonstrate the commercial viability of a process for
converting biomass into fuels or chemicals; and
`(ii) may consider the likelihood that the projects will produce
electricity.
`(B) FACTORS- The factors to be considered under subparagraph (A)
shall include--
`(i) the potential market for the product or
products;
`(ii) the quantity of petroleum the product will
displace;
`(iii) the level of financial participation by the
applicants;
`(iv) the availability of adequate funding from other
sources;
`(v) the beneficial impact on resource conservation and the
environment;
`(vi) the participation of producer associations and
cooperatives;
`(vii) the timeframe in which the project will be
operational;
`(viii) the potential for rural economic
development;
`(ix) the participation of multiple eligible entities;
and
`(x) the potential for developing advanced industrial
biotechnology approaches.
`(1) IN GENERAL- Except as provided in paragraph (2), the amount of
a grant for a project awarded under subsection (c) shall not exceed 30
percent of the cost of the project.
`(2) INCREASED GRANT AMOUNT- The Secretary may increase the amount
of a grant for a project under subsection (c) to not more than 50 percent in
the case of a project that the Secretary finds particularly
meritorious.
`(3) FORM OF GRANTEE SHARE-
`(A) IN GENERAL- The grantee share of the cost of a project may be
made in the form of cash or the provision of services, material, or other
in-kind contributions.
`(B) LIMITATION- The amount of the grantee share of the cost of a
project that is made in the form of the provision of services, material,
or other in-kind contributions shall not exceed 25 percent of the amount
of the grantee share determined under paragraph (1).
`(1) IN GENERAL- Not later than 30 days after the date of enactment
of this subtitle, and on October 1, 2002, and each October 1 thereafter
through October 1, 2005, out of any funds in the Treasury not otherwise
appropriated, the Secretary of the Treasury shall transfer to the Secretary
to carry out this section $15,000,000, to remain available until
expended.
`(2) RECEIPT AND ACCEPTANCE- The Secretary shall be entitled to
receive, shall accept, and shall use to carry out this section the funds
transferred under paragraph (1), without further appropriation.
`SEC. 388D. BIODIESEL FUEL EDUCATION PROGRAM.
`(a) FINDINGS- Congress finds that--
`(1) biodiesel fuel use can help reduce greenhouse gas emissions and
public health risks associated with air pollution;
`(2) biodiesel fuel use enhances energy security by reducing
petroleum consumption;
`(3) biodiesel fuel is nearing the transition from the research and
development phase to commercialization;
`(4) biodiesel fuel is still relatively unknown to the public and
even to diesel fuel users; and
`(5) education of, and provision of technical support to, current
and future biodiesel fuel users will be critical to the widespread use of
biodiesel fuel.
`(b) ESTABLISHMENT- The Secretary shall, under such terms and
conditions as are appropriate, offer 1 or more competitive grants to eligible
entities to educate Federal, State, regional, and local government entities
and private entities that operate vehicle fleets, other interested entities
(as determined by the Secretary), and the public about the benefits of
biodiesel fuel use.
`(c) ELIGIBLE ENTITIES- To receive a grant under subsection (b), an
entity--
`(1) shall be a nonprofit organization; and
`(2) shall have demonstrated expertise in biodiesel fuel production,
use, and distribution.
`(d) AUTHORIZATION OF APPROPRIATIONS- Of the funds of the Commodity
Credit Corporation, the Secretary shall make available $5,000,000 for each
fiscal year 2003 through 2006.
`CHAPTER 2--RENEWABLE ENERGY DEVELOPMENT AND ENERGY
EFFICIENCY
`SEC. 388E. RENEWABLE ENERGY DEVELOPMENT LOAN AND GRANT
PROGRAM.
`(a) IN GENERAL- The Secretary, acting through the Rural Business
Cooperative Service, in addition to exercising authority to make loans and
loan guarantees under other law, shall establish a program under which the
Secretary shall make loans and loan guarantees and competitively award grants
to assist farmers and ranchers in projects to establish new, or expand
existing, farmer or rancher cooperatives, or other rural business ventures (as
determined by the Secretary), to--
`(1) enable farmers and ranchers to become owners of sources of
renewable electric energy and marketers of electric energy produced from
renewable sources;
`(2) provide new income streams for farmers and ranchers;
`(3) increase the quantity of electricity available from renewable
energy sources; and
`(4) provide environmental and public health benefits to rural
communities and the United States as a whole.
`(b) OWNERSHIP REQUIREMENT- At least 51 percent of the interest in a
rural business venture assisted with a grant under subsection (a) shall be
owned by farmers or ranchers.
`(c) MAXIMUM AMOUNT OF LOANS AND GRANTS-
`(1) LOANS- The amount of a loan made or guaranteed for a project
under subsection (a) shall not exceed $10,000,000.
`(2) GRANTS- The amount of a grant made for a project under
subsection (a) shall not exceed $200,000 for a fiscal year.
`(1) IN GENERAL- The total amount of loans made or guaranteed or
grants awarded under subsection (a) for a project shall not exceed 50
percent of the cost of the activity funded by the loan or grant.
`(2) FORM OF GRANTEE SHARE-
`(A) IN GENERAL- The grantee share of the cost of the activity may
be made in the form of cash or the provision of services, material, or
other in-kind contributions.
`(B) LIMITATION- The amount of the grantee share of the cost of an
activity that is made in the form of the provision of services, material,
or other in-kind contributions shall not exceed 25 percent of the amount
of the grantee share, as determined under paragraph (1).
`(e) INTEREST RATE- A loan made or guaranteed under subsection (a)
shall bear an interest rate that does not exceed 4 percent.
`(A) GRANTS- A recipient of a grant awarded under subsection (a)
may use the grant funds to develop a business plan or perform a
feasibility study to establish a viable marketing opportunity for
renewable electric energy generation and sale.
`(B) LOANS- A recipient of a loan or loan guarantee under
subsection (a) may use the loan funds to provide capital for start-up
costs associated with the rural business venture or the promotion of the
aggregation of renewable electric energy sources.
`(2) PROHIBITED USES- A recipient of a loan, loan guarantee, or
grant under subsection (a) shall not use the loan or grant funds for
planning, repair, rehabilitation, acquisition, or construction of a
building.
`(1) IN GENERAL- Not later than 30 days after the date of enactment
of this subtitle, and on October 1, 2002, and each October 1 thereafter
through October 1, 2005, out of any funds in the Treasury not otherwise
appropriated, the Secretary of the Treasury shall transfer to the Secretary
to carry out this section $16,000,000, to remain available until
expended.
`(2) RECEIPT AND ACCEPTANCE- The Secretary shall be entitled to
receive, shall accept, and shall use to carry out this section the funds
transferred under paragraph (1), without further appropriation.
`(3) LOAN AND INTEREST SUBSIDIES- In the case of a loan or loan
guarantee under subsection (a), the Secretary shall use funds under
paragraph (1) to pay the cost of loan and interest subsidies necessary to
carry out this section.
`SEC. 388F. ENERGY AUDIT AND RENEWABLE ENERGY DEVELOPMENT
PROGRAM.
`(a) IN GENERAL- The Secretary, acting through the Rural Business
Cooperative Service, shall make competitive grants to eligible entities to
enable the eligible entities to carry out a program to assist farmers, and
ranchers, and rural small businesses (as determined by the Secretary) in
becoming more energy efficient and in using renewable energy
technology.
`(b) ELIGIBLE ENTITIES- Entities eligible to carry out a program under
subsection (a) include--
`(1) a State energy or agricultural office;
`(2) a regional or State-based energy organization or energy
organization of an Indian tribe (as defined in section 4 of the Indian
Self-Determination and Education Assistance Act (25 U.S.C.
450b));
`(3) a land-grant college or university (as defined in section 1404
of the National Agricultural Research, Extension, and Teaching Policy Act of
1977 (7 U.S.C. 3103)) or other college or university;
`(4) a farm bureau or organization;
`(5) a rural electric cooperative or utility;
`(6) a nonprofit organization; and
`(7) any other entity, as determined by the Secretary.
`(1) MERIT REVIEW PANEL- The Secretary shall establish a merit
review panel to review applications for grants under subsection (a) that
uses the expertise of other Federal agencies (including the Department of
Energy and the Environmental Protection Agency), industry, and
nongovernmental organizations.
`(2) SELECTION CRITERIA- In reviewing applications of eligible
entities to receive grants under subsection (a), the merit review panel
shall consider--
`(A) the ability and expertise of the eligible entity in providing
professional energy audits and renewable energy assessments;
`(B) the geographic scope of the program proposed by the eligible
entity;
`(C) the number of farmers, ranchers, and rural small businesses
to be assisted by the program;
`(D) the potential for energy savings and environmental and public
health benefits resulting from the program; and
`(E) the plan of the eligible entity for educating farmers,
ranchers, and rural small businesses on the benefits of energy efficiency
and renewable energy development.
`(d) USE OF GRANT FUNDS- A recipient of a grant under subsection (a)
shall use the grant funds to--
`(1)(A) conduct energy audits for farmers, ranchers, and rural small
businesses to provide farmers, ranchers, and rural small businesses
recommendations for energy efficiency and renewable energy development
opportunities; and
`(B) conduct workshops on that subject as appropriate;
`(2) make farmers, ranchers, and rural small businesses aware of,
and ensure that they have access to--
`(A) financial assistance under section 388G; and
`(B) other Federal, State, and local financial assistance programs
for which farmers, ranchers, and rural small businesses may be eligible;
and
`(3) arrange private financial assistance to farmers, ranchers, and
rural small businesses on favorable terms.
`(1) IN GENERAL- A recipient of a grant under subsection (a) that
conducts an energy audit for a farmer, rancher, or rural small business
under subsection (d)(1) shall require that, as a condition to the conduct of
the energy audit, the farmer, rancher, or rural small business pay at least
25 percent of the cost of the audit.
`(2) IMPLEMENTATION OF RECOMMENDATIONS- If a farmer, rancher, or
rural small business substantially implements the recommendations made in
connection with an energy audit, the Secretary may reimburse the farmer,
rancher, or rural small business the amount that is equal to the share of
the cost paid by the farmer, rancher, or rural small business under
paragraph (1).
`(f) REPORTS- The Secretary shall submit to the Committee on
Agriculture of the House of Representatives and the Committee on Agriculture,
Nutrition, and Forestry of the Senate an annual report on the implementation
of this section.
`(1) IN GENERAL- Not later than 30 days after the date of enactment
of this subtitle, and on October 1, 2002, and each October 1 thereafter
through October 1, 2005, out of any funds in the Treasury not otherwise
appropriated, the Secretary of the Treasury shall transfer to the Secretary
to carry out this section $15,000,000, to remain available until
expended.
`(2) RECEIPT AND ACCEPTANCE- The Secretary shall be entitled to
receive, shall accept, and shall use to carry out this section the funds
transferred under paragraph (1), without further appropriation.
`SEC. 388G. LOANS, LOAN GUARANTEES, AND GRANTS TO FARMERS, RANCHERS, AND
RURAL SMALL BUSINESSES FOR RENEWABLE ENERGY SYSTEMS AND ENERGY EFFICIENCY
IMPROVEMENTS.
`(a) IN GENERAL- In addition to exercising authority to make loans and
loan guarantees under other law, the Secretary shall make loans, loan
guarantees, and grants to farmers, ranchers, and rural small businesses
to--
`(1) purchase renewable energy systems; and
`(2) make energy efficiency improvements.
`(b) ELIGIBILITY OF FARMERS AND RANCHERS- To be eligible to receive a
grant under subsection (a) for a fiscal year, a farmer or rancher shall have
produced not more than $1,000,000 in market value of agricultural products
during the preceding fiscal year, as determined by the Secretary.
`(1) RENEWABLE ENERGY SYSTEMS-
`(i) GRANTS- The amount of a grant made under subsection (a) for
a renewable energy system shall not exceed 30 percent of the cost of the
renewable energy system.
`(ii) MAXIMUM AMOUNT OF COMBINED GRANT AND LOAN- The combined
amount of a grant and loan made or guaranteed under subsection (a) for a
renewable energy system shall not exceed 60 percent of the cost of the
renewable energy system.
`(B) FACTORS- In determining the amount of a grant or loan under
subparagraph (A), the Secretary shall take into
consideration--
`(i) the type of renewable energy system to be
purchased;
`(ii) the estimated quantity of energy to be generated or
displaced by the renewable energy system;
`(iii) the expected environmental benefits of the renewable
energy system;
`(iv) the extent to which the renewable energy system will be
replicable; and
`(v) other factors as appropriate.
`(2) ENERGY EFFICIENCY IMPROVEMENTS-
`(i) GRANTS- The amount of a grant made under subsection (a) for
an energy efficiency improvement shall not exceed 25 percent of the cost
of the energy efficiency improvement.
`(ii) MAXIMUM AMOUNT OF COMBINED GRANT AND LOAN- The combined
amount of a grant and loan made or guaranteed under subsection (a) for
an energy efficiency project shall not exceed 50 percent of the cost of
the energy efficiency improvement.
`(B) FACTORS- In determining the amount of a grant or loan under
subparagraph (A), the Secretary shall take into
consideration--
`(i) the estimated length of time it would take for the energy
savings generated by the improvement to equal the cost of the
improvement;
`(ii) the amount of energy savings expected to be derived from
the improvement; and
`(iii) other factors as appropriate.
`(d) INTEREST RATE- A loan made or guaranteed under subsection (a)
shall bear interest at a rate not exceeding 4 percent.
`(e) ENERGY AUDIT AND RENEWABLE ENERGY DEVELOPMENT PROGRAM-
`(1) PREFERENCE- In making loans, loan guarantees, and grants under
subsection (a), the Secretary shall give preference to participants in the
energy audit and renewable energy development program under section
388F.
`(2) RESERVATION OF FUNDING- The Secretary shall reserve at least 25
percent of the funds made available to carry out this section for each of
fiscal years 2002 through 2006 to participants in the energy audit and
renewable energy development program under section 388F.
`(1) IN GENERAL- Not later than 30 days after the date of enactment
of this subtitle, and on October 1, 2002, and each October 1 thereafter
through October 1, 2005, out of any funds in the Treasury not otherwise
appropriated, the Secretary of the Treasury shall transfer to the Secretary
to carry out this section $33,000,000, to remain available until
expended.
`(2) RECEIPT AND ACCEPTANCE- The Secretary shall be entitled to
receive, shall accept, and shall use to carry out this section the funds
transferred under paragraph (1), without further appropriation.
`(3) LOAN AND INTEREST SUBSIDIES- In the case of a loan or loan
guarantee under subsection (a), the Secretary shall use funds under
paragraph (1) to pay the cost of loan and interest subsidies necessary to
carry out this section.
`SEC. 388H. HYDROGEN AND FUEL CELL TECHNOLOGIES PROGRAM.
`(a) FINDINGS- Congress finds that--
`(1) fuel cells are a highly efficient, clean, and flexible
technology for generating electricity from hydrogen that promises to improve
the environment, electricity reliability, and energy security;
`(2)(A) because fuel cells can be made in any size, fuel cells can
be used for a wide variety of farm applications, including powering farm
vehicles, equipment, houses, and other operations; and
`(B) much of the initial use of fuel cells is likely to be in remote
and off-grid applications in rural areas; and
`(3) hydrogen is a clean and flexible fuel that can play a critical
role in storing and transporting energy produced on farms from renewable
sources (including biomass, wind, and solar energy).
`(b) GRANT PROGRAM- The Secretary of Agriculture, in consultation with
the Secretary of Energy, shall establish a program under which the Secretary
of Agriculture shall competitively award grants to, or enter into contracts or
cooperative agreements with, eligible entities for--
`(1) projects to demonstrate the use of hydrogen technologies and
fuel cell technologies in farm, ranch, and rural applications;
and
`(2) as appropriate, studies of the technical, environmental, and
economic viability, in farm, ranch, and rural applications, of innovative
hydrogen and fuel cell technologies not ready for demonstration.
`(c) ELIGIBLE ENTITIES- Under subsection (b), the Secretary may make a
grant to or enter into a contract or cooperative agreement with--
`(1) a Federal research agency;
`(2) a national laboratory;
`(3) a college or university or a research foundation maintained by
a college or university;
`(4) a private organization with an established and demonstrated
capacity to perform research or technology transfer;
`(5) a State agricultural experiment station;
`(7) a consortium comprised of entities described in paragraphs (1)
through (6).
`(d) SELECTION CRITERIA- In selecting projects for grants, contracts,
and cooperative agreements under subsection (b)(1), the Secretary shall give
preference to projects that demonstrate technologies that--
`(2) use renewable energy sources;
`(3) generate both usable electricity and heat;
`(4) provide significant environmental benefits;
`(5) are likely to be economically competitive; and
`(6) have potential for commercialization as mass-produced, farm- or
ranch-sized systems.
`(e) COST SHARING- The amount of financial assistance provided for a
project under a grant, contract, or cooperative agreement under subsection (b)
shall not exceed 50 percent of the cost of the project.
`(1) IN GENERAL- Not later than 30 days after the date of enactment
of this subtitle, and on October 1, 2002, and each October 1 thereafter
through October 1, 2005, out of any funds in the Treasury not otherwise
appropriated, the Secretary of the Treasury shall transfer to the Secretary
to carry out this section $5,000,000, to remain available until
expended.
`(2) RECEIPT AND ACCEPTANCE- The Secretary shall be entitled to
receive, shall accept, and shall use to carry out this section the funds
transferred under paragraph (1), without further appropriation.
`SEC. 388I. TECHNICAL ASSISTANCE FOR FARMERS AND RANCHERS TO DEVELOP
RENEWABLE ENERGY RESOURCES.
`(a) IN GENERAL- The Secretary, acting through the Cooperative State
Research, Education, and Extension Service in consultation with the Natural
Resources Conservation Service, regional biomass programs under the Department
of Energy, and other entities as appropriate, may provide for education and
technical assistance to farmers and ranchers for the development and marketing
of renewable energy resources.
`(b) ADMINISTRATIVE EXPENSES- The Secretary may retain up to 4 percent
of the amounts made available for each fiscal year to carry out this section
to pay administrative expenses incurred in carrying out this section.
`CHAPTER 3--CARBON SEQUESTRATION RESEARCH, DEVELOPMENT, AND
DEMONSTRATION PROGRAM
`SEC. 388J. RESEARCH.
`(1) IN GENERAL- Subject to the availability of appropriations, the
Secretary shall carry out research to promote understanding of--
`(A) the net sequestration of organic carbon in soils and plants
(including trees); and
`(B) net emissions of other greenhouse gases from
agriculture.
`(2) AGRICULTURAL RESEARCH SERVICE- The Secretary, acting through
the Agricultural Research Service, shall collaborate with other Federal
agencies in developing data and carrying out research addressing carbon
losses and gains in soils and plants (including trees) and net emissions of
methane and nitrous oxide from cultivation and animal management
activities.
`(3) COOPERATIVE STATE RESEARCH, EDUCATION, AND EXTENSION SERVICE-
`(A) IN GENERAL- The Secretary, acting through the Cooperative
State Research, Education, and Extension Service, shall establish a
competitive grant program to carry out research on the matters described
in paragraph (1) by eligible entities.
`(B) ELIGIBLE ENTITIES- Under subparagraph (A), the Secretary may
make a grant to--
`(i) a Federal research agency;
`(ii) a national laboratory;
`(iii) a college or university or a research foundation
maintained by a college or university;
`(iv) a private research organization with an established and
demonstrated capacity to perform research or technology
transfer;
`(v) a State agricultural experiment station;
`(vi) a State forestry agency that has developed or is
developing a forest carbon sequestration program; or
`(C) CONSULTATION ON RESEARCH TOPICS- Before issuing a request for
proposals for basic research under paragraph (1), the Cooperative State
Research, Education, and Extension Service shall consult with the
Agricultural Research Service and the Forest Service to ensure that
proposed research areas are complementary with and do not duplicate other
research projects funded by the Department or other Federal
agencies.
`(D) ADMINISTRATIVE EXPENSES- The Secretary may retain up to 4
percent of the amounts made available for each fiscal year to carry out
this subsection to pay administrative expenses incurred in carrying out
this subsection.
`(1) IN GENERAL- The Secretary shall carry out applied research in
the areas of soil science, agronomy, agricultural economics, forestry, and
other agricultural sciences to--
`(A) promote understanding of--
`(i) how agricultural and forestry practices affect the
sequestration of organic and inorganic carbon in soils and plants
(including trees) and net emissions of other greenhouse
gases;
`(ii) how changes in soil carbon pools in soils and plants
(including trees) are cost-effectively measured, monitored, and
verified; and
`(iii) how public programs and private market approaches can be
devised to incorporate carbon sequestration in a broader societal
greenhouse gas emission reduction effort;
`(B) develop methods for establishing baselines for measuring the
quantities of carbon and other greenhouse gases sequestered;
and
`(C) evaluate leakage, performance, and permanence
issues.
`(2) REQUIREMENTS- To the maximum extent practicable, applied
research under paragraph (1) shall--
`(A) use existing technologies and methods; and
`(B) provide methodologies that are accessible to a nontechnical
audience.
`(3) MINIMIZATION OF ADVERSE ENVIRONMENTAL IMPACTS- All applied
research under paragraph (1) shall be conducted with an emphasis on
minimizing adverse environmental impacts.
`(4) NATURAL RESOURCES AND THE ENVIRONMENT- The Secretary, acting
through the Natural Resources Conservation Service and the Forest Service,
shall collaborate with other Federal agencies in developing new measuring
techniques and equipment or adapting existing techniques and equipment to
enable cost-effective and accurate monitoring and verification, for a wide
range of agricultural and forestry practices, of--
`(A) changes in carbon content in soils and plants (including
trees); and
`(B) net emissions of other greenhouse gases.
`(5) COOPERATIVE STATE RESEARCH, EDUCATION, AND EXTENSION SERVICE-
`(A) IN GENERAL- The Secretary, acting through the Cooperative
State Research, Education, and Extension Service and the Forest Service,
shall establish a competitive grant program to encourage research on the
matters described in paragraph (1) by eligible entities.
`(B) ELIGIBLE ENTITIES- Under subparagraph (A), the Secretary may
make a grant to--
`(i) a Federal research agency;
`(ii) a national laboratory;
`(iii) a college or university or a research foundation
maintained by a college or university;
`(iv) a private research organization with an established and
demonstrated capacity to perform research or technology
transfer;
`(v) a State agricultural experiment station;
`(vi) a State forestry agency that has developed or is
developing a forest carbon sequestration program; or
`(C) CONSULTATION ON RESEARCH TOPICS- Before issuing a request for
proposals for applied research under paragraph (1), the Cooperative State
Research, Education, and Extension Service and the Forest Service shall
consult with the Natural Resources Conservation Service and the
Agricultural Research Service to ensure that proposed research areas are
complementary with and do not duplicate research projects funded by the
Department of Agriculture or other Federal agencies.
`(D) ADMINISTRATIVE EXPENSES- The Secretary, acting through the
Cooperative State Research, Education, and Extension Service, may retain
up to 4 percent of the amounts made available for each fiscal year to
carry out this subsection to pay administrative expenses incurred in
carrying out this subsection.
`(1) IN GENERAL- The Secretary may designate not more than 2
research consortia to carry out research projects under this section, with
the requirement that the consortia propose to conduct basic research under
subsection (a) and applied research under subsection (b) .
`(2) SELECTION- The consortia shall be selected on a competitive
basis by the Cooperative State Research, Education, and Extension
Service.
`(3) ELIGIBLE CONSORTIUM PARTICIPANTS- Entities eligible to
participate in a consortium include--
`(A) a college or university or a research foundation maintained
by a college or university;
`(B) a private research institution;
`(D) an Indian tribe (as defined in section 4 of the Indian
Self-Determination and Education Assistance Act (25 U.S.C.
450b));
`(E) an agency of the Department of Agriculture;
`(F) a research center of the National Aeronautics and Space
Administration, the Department of Energy, or any other Federal
agency;
`(G) an agricultural business or organization with demonstrated
expertise in areas covered by this section; and
`(H) a representative of the private sector with demonstrated
expertise in the areas.
`(4) RESERVATION OF FUNDING- If the Secretary designates 1 or 2
consortia, the Secretary shall reserve for research projects carried out by
the consortium or consortia not more than 25 percent of the amounts made
available to carry out this section for a fiscal year.
`(d) STANDARDS FOR MEASURING CARBON AND OTHER GREENHOUSE GAS CONTENT-
`(1) CONFERENCE- Not later than 3 years after the date of enactment
of this subtitle, the Secretary shall convene a conference of key scientific
experts on carbon sequestration from various sectors (including the
government, academic, and private sectors) to--
`(A) discuss benchmark standards for measuring the carbon content
of soils and plants (including trees) and net emissions of other
greenhouse gases;
`(B) propose techniques and modeling approaches for measuring
carbon content with a level of precision that is agreed on by the
participants in the conference; and
`(C) evaluate results of analyses on baseline, permanence, and
leakage issues.
`(2) DEVELOPMENT OF BENCHMARK STANDARDS-
`(A) IN GENERAL- The Secretary shall develop benchmark standards
for measuring the carbon content of soils and plants (including trees)
based on--
`(i) information from the conference under paragraph
(1);
`(ii) research conducted under this section;
and
`(iii) other information available to the
Secretary.
`(B) OPPORTUNITY FOR PUBLIC COMMENT- The Secretary shall provide
an opportunity for the public to comment on the benchmark standards
developed under subparagraph (A).
`(3) REPORT- Not later than 180 days after the conclusion of the
conference under paragraph (1), the Secretary shall submit to the Committee
on Agriculture of the House of Representatives and the Committee on
Agriculture, Nutrition, and Forestry of the Senate a report on the results
of the conference.
`(e) AUTHORIZATION OF APPROPRIATIONS-
`(1) IN GENERAL- There is authorized to be appropriated to carry out
this section $25,000,000 for each of fiscal years 2002 through
2006.
`(A) IN GENERAL- Of the amounts made available to carry out this
section for a fiscal year, at least 50 percent shall be allocated for
competitive grants by the Cooperative State Research, Education, and
Extension Service.
`(B) ADMINISTRATIVE EXPENSES- The Secretary may retain up to 4
percent of the amounts made available for each fiscal year to carry out
this section to pay administrative expenses incurred in carrying out this
section.
`SEC. 388K. DEMONSTRATION PROJECTS AND OUTREACH.
`(a) DEMONSTRATION PROJECTS-
`(1) DEVELOPMENT OF MONITORING PROGRAMS-
`(A) IN GENERAL- The Secretary, in cooperation with local
extension agents, experts from land grant universities, and other local
agricultural or conservation organizations, shall develop user-friendly
programs that combine measurement tools and modeling techniques into
integrated packages to monitor the carbon sequestering benefits of
conservation practices and net changes in greenhouse gas
emissions.
`(B) BENCHMARK LEVELS OF PRECISION- The Secretary shall administer
programs developed under subparagraph (A) in a manner that achieves, to
the maximum extent practicable, benchmark levels of precision in the
measurement, in a cost-effective manner, of benefits and changes described
in subparagraph (A).
`(A) IN GENERAL- The Secretary shall establish a program under
which the monitoring programs developed under paragraph (1) are used in
projects to demonstrate the feasibility of methods of measuring,
verifying, and monitoring--
`(i) changes in organic carbon content and other carbon pools in
soils and plants (including trees); and
`(ii) net changes in emissions of other greenhouse
gases.
`(B) EVALUATION OF IMPLICATIONS- The projects under subparagraph
(A) shall include evaluation of the implications for reassessed baselines,
carbon or other greenhouse gas leakage, and the permanence of
sequestration.
`(C) SUBMISSION OF PROPOSALS- Proposals for projects under
subparagraph (A) shall be submitted by the appropriate agency of each
State, in consultation with interested local jurisdictions and State
agricultural and conservation organizations.
`(D) LIMITATION- Not more than 10 projects under subparagraph (A)
may be approved in conjunction with applied research projects under
section 388J(b) until benchmark measurement and assessment standards are
established under section 388J(d).
`(1) IN GENERAL- The Secretary, acting through the Cooperative State
Research, Education, and Extension Service, shall widely disseminate
information about the economic and environmental benefits that can be
generated by adoption of conservation practices that increase sequestration
of carbon and reduce emissions of other greenhouse gases.
`(2) PROJECT RESULTS- The Secretary, acting through the Cooperative
State Research, Education, and Extension Service, shall provide for the
dissemination to farmers, ranchers, private forest landowners, and
appropriate State agencies in each State of information
concerning--
`(A) the results of demonstration projects under subsection
(a)(2); and
`(B) the manner in which the methods demonstrated in the projects
might be applicable to the operations of the farmers, ranchers, private
forest landowners, and State agencies.
`(3) POLICY OUTREACH- The Secretary, acting through the Cooperative
State Research, Education, and Extension Service, shall disseminate
information on the connection between global climate change mitigation
strategies and agriculture and forestry, so that farmers, ranchers, private
forest landowners, and State agencies may better understand the global
implications of the activities of the farmers, ranchers, private forest
landowners, and State agencies.
`(c) AUTHORIZATION OF APPROPRIATIONS-
`(1) IN GENERAL- There is authorized to be appropriated to carry out
this section $10,000,000 for each of fiscal years 2002 through
2006.
`(2) ALLOCATION- Of the amounts made available to carry out this
section for a fiscal year, at least 50 percent shall be allocated for
demonstration projects under subsection (a)(2).'.
SEC. 903. BIOMASS RESEARCH AND DEVELOPMENT ACT OF 2000.
(a) FUNDING- The Biomass Research and Development Act of 2000 (7
U.S.C. 7624 note; Public Law 106-224) is amended--
(1) in section 307, by striking subsection (f);
(2) by redesignating section 310 as section 311; and
(3) by inserting after section 309 the following:
`SEC. 310. FUNDING.
`(a) TRANSFERS BY THE SECRETARY OF THE TREASURY-
`(1) IN GENERAL- Not later than 30 days after the date of enactment
of this subsection, and on October 1, 2002, and each October 1 thereafter
through October 1, 2005, out of any funds in the Treasury not otherwise
appropriated, the Secretary of the Treasury shall transfer to the Secretary
to carry out this title $15,000,000, to remain available until
expended.
`(2) RECEIPT AND ACCEPTANCE- The Secretary shall be entitled to
receive, shall accept, and shall use to carry out this title the funds
transferred under paragraph (1), without further appropriation.
`(b) AUTHORIZATION OF APPROPRIATIONS- In addition to amounts
transferred under subsection (a), there are authorized to be appropriated to
carry out this title $49,000,000 for each of fiscal years 2002 through
2006.'.
(b) TERMINATION OF AUTHORITY- Section 311 of the Biomass Research and
Development Act of 2000 (7 U.S.C. 7624 note; Public Law 106-224) (as
redesignated by subsection (a)) is amended by striking `December 31, 2005' and
inserting `September 30, 2006'.
SEC. 904. RURAL ELECTRIFICATION ACT OF 1936.
Title I of the Rural Electrification Act of 1936 (7 U.S.C. 901 et
seq.) is amended by adding at the end the following:
`SEC. 20. FINANCIAL AND TECHNICAL ASSISTANCE FOR RENEWABLE ENERGY
PROJECTS.
`(a) DEFINITIONS- In this section:
`(1) RENEWABLE ENERGY- The term `renewable energy' means energy
derived from a wind, solar, biomass, geothermal, or hydrogen
source.
`(2) RURAL AREA- The term `rural area' includes any area that is not
within the boundaries of--
`(A) a city, town, village, or borough having a population of more
than 20,000; or
`(B) an urbanized area (as determined by the
Secretary).
`(b) LOANS, LOAN GUARANTEES, AND GRANTS- The Secretary shall make
loans, loan guarantees, and grants to rural electric cooperatives and other
rural electric utilities (as determined by the Secretary) to promote the
development of economically and environmentally sustainable renewable energy
projects to serve the needs of rural communities or for rural economic
development.
`(c) INTEREST RATE- A loan made or guaranteed under subsection (b)
shall bear interest at a rate not exceeding 4 percent.
`(1) GRANTS- A recipient of a grant under subsection (a) may use the
grant funds to pay up to 75 percent of the cost of an economic feasibility
study or technical assistance for a renewable energy project.
`(2) LOANS- If a renewable energy project is determined to be
economically feasible, a recipient of a loan or loan guarantee under
subsection (a) may use the loan funds to pay a percentage of the cost of the
project determined by the Secretary.
`(1) IN GENERAL- Not later than 30 days after the date of enactment
of this section, and on October 1, 2002, and each October 1 thereafter
through October 1, 2005, out of any funds in the Treasury not otherwise
appropriated, the Secretary of the Treasury shall transfer to the Secretary
to carry out this section $9,000,000, to remain available until
expended.
`(2) RECEIPT AND ACCEPTANCE- The Secretary shall be entitled to
receive, shall accept, and shall use to carry out this section the funds
transferred under paragraph (1), without further appropriation.
`(3) LOAN AND INTEREST SUBSIDIES- In the case of a loan or loan
guarantee under subsection (a), the Secretary shall use funds under
paragraph (1) to pay the cost of loan and interest subsidies necessary to
carry out this section.'.
SEC. 905. CARBON SEQUESTRATION DEMONSTRATION PROGRAM.
(a) FINDINGS- Congress finds that--
(1) greenhouse gas emissions resulting from human activity present
potential risks and potential opportunities for agricultural and forestry
production;
(2) there is a need to identify cost-effective methods that can be
used in the agricultural and forestry sectors to reduce the threat of
climate change;
(3) deforestation and other land use changes account for
approximately 1,600,000,000 of the 7,900,000,000 metric tons of the average
annual worldwide quantity of carbon emitted during the 1990s;
(4) ocean and terrestrial systems each sequestered approximately
2,300,000,000 metric tons of carbon annually, resulting in a sequestration
of 60 percent of the annual human-induced emissions of carbon during the
1990s;
(5) there are opportunities for increasing the quantity of carbon
that can be stored in terrestrial systems through improved, human-induced
agricultural and forestry practices;
(6) increasing the carbon content of soil helps to reduce erosion,
reduce flooding, minimize the effects of drought, prevent nutrients and
pesticides from washing into water bodies, and contribute to water
infiltration, air and water holding capacity, and good seed germination and
plant growth;
(7) tree planting and wetland restoration could play a major role in
sequestering carbon and reducing greenhouse gas concentrations in the
atmosphere;
(8) nitrogen management is a cost-effective method of addressing
nutrient overenrichment in the estuaries of the United States and of
reducing emissions of nitrous oxide;
(9) animal feed and waste management can be cost-effective methods
to address water quality issues and reduce emissions of methane;
and
(10) there is a need to--
(A) demonstrate that carbon sequestration in soils, plants, and
forests and reductions in greenhouse gas emissions through nitrogen and
animal feed and waste management can be measured and verified;
and
(B) develop and refine quantification, verification, and auditing
methodologies for carbon sequestration and greenhouse gas emission
reductions on a project by project basis.
(b) PROGRAM- Title IV of the Agricultural Research, Extension, and
Education Reform Act of 1998 (7 U.S.C. 7621 et seq.) (as amended by section
750) is amended by adding at the end the following:
`SEC. 412. CARBON SEQUESTRATION DEMONSTRATION PROGRAM.
`(a) DEFINITIONS- In this section:
`(1) ELIGIBLE PROJECT- The term `eligible project' means a project
that is likely to result in--
`(A) demonstrable reductions in net emissions of greenhouse gases;
or
`(B) demonstrable net increases in the quantity of carbon
sequestered in soils and forests.
`(2) ENVIRONMENTAL TRADE- The term `environmental trade' means a
transaction between an emitter of a greenhouse gas and an agricultural
producer or farmer-owned cooperative under which the emitter pays to the
agricultural producer or farmer-owned cooperative a fee to sequester carbon
or otherwise reduce emissions of greenhouse gases.
`(3) PANEL- The term `panel' means the panel of experts established
under subsection (b)(4)(A).
`(4) SECRETARY- The term `Secretary' means the Secretary of
Agriculture, acting in consultation with--
`(A) the Under Secretary of Agriculture for Natural Resources and
Environment;
`(B) the Under Secretary of Agriculture for Research, Education,
and Economics;
`(C) the Chief Economist of the Department; and
`(b) DEMONSTRATION PROGRAM-
`(1) ESTABLISHMENT- Subject to the availability of appropriations,
the Secretary shall establish a program to provide grants, on a competitive,
cost-shared basis, to agricultural producers, non-industrial private forest
owners and farmer-owned cooperatives, to assist in paying the costs incurred
in measuring, estimating, monitoring, verifying, auditing, and testing
methodologies involved in environmental trades (including costs incurred in
employing certified independent third persons to carry out those
activities).
`(2) CONDITIONS FOR RECEIPT OF GRANT- As a condition of the
acceptance of a grant under paragraph (1), an agricultural producer,
non-industrial forest owner and farmer-owned cooperatives shall--
`(A) establish a carbon and greenhouse gas monitoring,
verification, and reporting system that meets such requirements as the
Secretary shall prescribe; and
`(B) under the system and through the use of an independent third
party for any necessary monitoring, verifying, reporting, and auditing,
measure and report to the Secretary the quantity of carbon sequestered, or
the quantity of greenhouse gas emissions reduced, as a result of the
conduct of an eligible project.
`(3) CRITERIA FOR AWARD OF GRANT-
`(A) IN GENERAL- In awarding a grant for an eligible project under
paragraph (1), the Secretary shall take into consideration--
`(i) the likelihood of the eligible project in succeeding in
achieving greenhouse gas emissions reductions and net carbon
sequestration increases; and
`(ii) the usefulness of the information to be obtained from the
eligible project in determining how best to quantify, monitor, and
verify sequestered carbon or reductions in greenhouse gas
emissions.
`(B) ELIGIBILITY CRITERIA- To be eligible for a grant under
paragraph (1), a project shall (as determined by the
Secretary)--
`(I) achieve long-term sequestration of carbon or long-term
reductions in greenhouse gas emissions;
`(II) address concerns regarding leakage and permanence;
or
`(III) promote additionality; and
`(I) the reforestation of land that has been deforested since
1990; or
`(II) the conversion of native grassland.
`(C) PRIORITY CRITERIA- The Secretary shall give priority in
awarding a grant under paragraph (1) to an eligible project
that--
`(i) involves multiple parties, a whole farm approach, or any
other approach, such as the aggregation of land areas, that
would--
`(I) increase the environmental benefits or reduce the
transaction costs of the eligible project; and
`(II) reduce the costs of measuring, monitoring, and verifying
any net sequestration of carbon or net reduction in greenhouse gas
emissions; and
`(ii) provides certain benefits, such as improvements
in--
`(IV) soil erosion management;
`(V) the use of renewable resources to produce
energy;
`(VI) the avoidance of ecosystem fragmentation;
and
`(VII) the promotion of ecosystem restoration with native
species.
`(A) IN GENERAL- The Secretary shall establish a panel to provide
advice and recommendations to the Secretary with respect to criteria for
awarding grants under this subsection.
`(B) COMPOSITION- The panel shall be composed of the following
representatives, to be appointed by the Secretary:
`(i) Experts from each of--
`(II) the Environmental Protection Agency;
and
`(III) the Department of Energy.
`(ii) Experts from nongovernmental and academic
entities.
`(5) PAYMENT OF GRANT FUNDS- The Secretary shall provide a grant
awarded under this section in such number of installments as is necessary to
ensure proper implementation of an eligible project.
`(c) DISSEMINATION OF INFORMATION- As soon as practicable after the
date of enactment of this section, the Secretary shall establish an Internet
site through which agricultural producers, non-industrial private forest
owners and farmer-owned cooperatives may obtain information
concerning--
`(1) potential environmental trades; and
`(2) activities of the Secretary under this section.
`(d) AUTHORIZATION OF APPROPRIATIONS- There is authorized to be
appropriated to carry out this section $20,000,000 for each of fiscal years
2002 through 2006, of which $1,000,000 for each of fiscal years 2002 through
2006 shall be made available to carry out farmer-owned cooperative carbon
environmental trade pilot projects, in accordance with this section.'.
SEC. 906. SENSE OF CONGRESS CONCERNING NATIONAL RENEWABLE FUELS
STANDARD.
It is the sense of Congress that--
(1) Congress supports and encourages adoption of a national
renewable fuels program, under which the motor vehicle fuel placed into
commerce by a refiner, blender, or importer shall be composed of renewable
fuel measured according to a statutory formula for specified calendar years;
and
(2) the Secretary of Agriculture should ensure that the policies and
programs of the Department of Agriculture promote the production of fuels
from renewable fuel sources.
SEC. 907. SENSE OF CONGRESS CONCERNING THE BIOENERGY PROGRAM OF THE
DEPARTMENT OF AGRICULTURE.
It is the sense of Congress that--
(1) ethanol and biofuel production capacity will be needed to phase
out the use of methyl tertiary butyl ether in gasoline and the dependence of
the United States on foreign oil; and
(2) the bioenergy program of the Department of Agriculture under
part 1424 of title 7, Code of Federal Regulations, should be continued and
expanded.
TITLE X--MISCELLANEOUS
Subtitle A--Country of Origin and Quality Grade
Labeling
SEC. 1001. COUNTRY OF ORIGIN LABELING.
The Agricultural Marketing Act of 1946 (7 U.S.C. 1621 et seq.) is
amended by adding at the end the following:
`Subtitle D--Country of Origin Labeling
`SEC. 281. DEFINITIONS.
`(1) BEEF- The term `beef' means meat produced from cattle
(including veal).
`(A) IN GENERAL- The term `covered commodity'
means--
`(i) muscle cuts of beef, lamb, and pork;
`(ii) ground beef, ground lamb, and ground
pork;
`(v) a perishable agricultural commodity; and
`(B) EXCLUSIONS- The term `covered commodity' does not
include--
`(i) processed beef, lamb, and pork food items;
and
`(ii) frozen entrees containing beef, lamb, and
pork.
`(3) FARM-RAISED FISH- The term `farm-raised fish'
includes--
`(A) farm-raised shellfish; and
`(B) fillets, steaks, nuggets, and any other flesh from a
farm-raised fish or shellfish.
`(4) FOOD SERVICE ESTABLISHMENT- The term `food service
establishment' means a restaurant, cafeteria, lunch room, food stand,
saloon, tavern, bar, lounge, or other similar facility operated as an
enterprise engaged in the business of selling food to the public.
`(5) LAMB- The term `lamb' means meat, other than mutton, produced
from sheep.
`(6) PERISHABLE AGRICULTURAL COMMODITY; RETAILER- The terms
`perishable agricultural commodity' and `retailer' have the meanings given
the terms in section 1(b) of the Perishable Agricultural Commodities Act,
1930 (7 U.S.C. 499a(b)).
`(7) PORK- The term `pork' means meat produced from hogs.
`(8) SECRETARY- The term `Secretary' means the Secretary of
Agriculture, acting through the Agricultural Marketing Service.
`(A) IN GENERAL- The term `wild fish' means naturally-born or
hatchery-raised fish and shellfish harvested in the wild.
`(B) INCLUSIONS- The term `wild fish' includes a fillet, steak,
nugget, and any other flesh from wild fish or shellfish.
`(C) EXCLUSIONS- The term `wild fish' excludes net-pen
aquacultural or other farm-raised fish.
`SEC. 282. NOTICE OF COUNTRY OF ORIGIN.
`(1) REQUIREMENT- Except as provided in subsection (b), a retailer
of a covered commodity shall inform consumers, at the final point of sale of
the covered commodity to consumers, of the country of origin of the covered
commodity.
`(2) UNITED STATES COUNTRY OF ORIGIN- A retailer of a covered
commodity may designate the covered commodity as having a United States
country of origin only if the covered commodity--
`(A) in the case of beef, lamb, and pork, is exclusively from an
animal that is exclusively born, raised, and slaughtered in the United
States;
`(B) in the case of farm-raised fish, is hatched, raised,
harvested, and processed in the United States;
`(C) in the case of wild fish, is--
`(i) harvested in waters of the United States, a territory of
the United States, or a State; and
`(ii) processed in the United States, a territory of the United
States, or a State, including the waters thereof; and
`(D) in the case of a perishable agricultural commodities or
peanut, is exclusively produced in the United States.
`(3) WILD FISH AND FARM-RAISED FISH- The notice of country of origin
for wild fish and farm-raised fish shall distinguish between wild fish and
farm-raised fish.
`(b) EXEMPTION FOR FOOD SERVICE ESTABLISHMENTS- Subsection (a) shall
not apply to a covered commodity if the covered commodity is--
`(1) prepared or served in a food service establishment;
and
`(2)(A) offered for sale or sold at the food service establishment
in normal retail quantities; or
`(B) served to consumers at the food service
establishment.
`(c) METHOD OF NOTIFICATION-
`(1) IN GENERAL- The information required by subsection (a) may be
provided to consumers by means of a label, stamp, mark, placard, or other
clear and visible sign on the covered commodity or on the package, display,
holding unit, or bin containing the commodity at the final point of sale to
consumers.
`(2) LABELED COMMODITIES- If the covered commodity is already
individually labeled for retail sale regarding country of origin, the
retailer shall not be required to provide any additional information to
comply with this section.
`(d) AUDIT VERIFICATION SYSTEM- The Secretary may require that any
person that prepares, stores, handles, or distributes a covered commodity for
retail sale maintain a verifiable recordkeeping audit trail that will permit
the Secretary to ensure compliance with the regulations promulgated under
section 284.
`(e) INFORMATION- Any person engaged in the business of supplying a
covered commodity to a retailer shall provide information to the retailer
indicating the country of origin of the covered commodity.
`(f) CERTIFICATION OF ORIGIN-
`(1) MANDATORY IDENTIFICATION- The Secretary shall not use a
mandatory identification system to verify the country of origin of a covered
commodity.
`(2) EXISTING CERTIFICATION PROGRAMS- To certify the country of
origin of a covered commodity, the Secretary may use as a model
certification programs in existence on the date of enactment of this Act,
including--
`(A) the carcass grading and certification system carried out
under this Act;
`(B) the voluntary country of origin beef labeling system carried
out under this Act;
`(C) voluntary programs established to certify certain premium
beef cuts;
`(D) the origin verification system established to carry out the
child and adult care food program established under section 17 of the
Richard B. Russell National School Lunch Act (42 U.S.C. 1766);
or
`(E) the origin verification system established to carry out the
market access program under section 203 of the Agricultural Trade Act of
1978 (7 U.S.C. 5623).
`SEC. 283. ENFORCEMENT.
`(a) IN GENERAL- Except as provided in subsection (b), section 253
shall apply to a violation of this subtitle.
`(b) WARNINGS- If the Secretary determines that a retailer is in
violation of section 282, the Secretary shall--
`(1) notify the retailer of the determination of the Secretary;
and
`(2) provide the retailer a 30-day period, beginning on the date on
which the retailer receives the notice under paragraph (1) from the
Secretary, during which the retailer may take necessary steps to comply with
section 282.
`(c) FINES- If, on completion of the 30-day period described in
subsection (c)(2), the Secretary determines that the retailer has willfully
violated section 282, after providing notice and an opportunity for a hearing
before the Secretary with respect to the violation, the Secretary may fine the
retailer in an amount determined by the Secretary.
`SEC. 284. REGULATIONS.
`(a) IN GENERAL- The Secretary may promulgate such regulations as are
necessary to carry out this subtitle.
`(b) PARTNERSHIPS WITH STATES- In promulgating the regulations, the
Secretary shall, to the maximum extent practicable, enter into partnerships
with States with enforcement infrastructure to carry out this
subtitle.
`SEC. 285. APPLICATION.
`This subtitle shall apply to the retail sale of a covered commodity
beginning on the date that is 180 days after the date of the enactment of this
subtitle.'.
SEC. 1002. QUALITY GRADE LABELING OF IMPORTED MEAT AND MEAT FOOD
PRODUCTS.
The Agricultural Marketing Act of 1946 (7 U.S.C. 1621 et seq.) (as
amended by section 1001) is amended by adding at the end the
following:
`Subtitle E--Commodity-Specific Grading Standards
`SEC. 291. DEFINITION OF SECRETARY.
`In this subtitle, the term `Secretary' means the Secretary of
Agriculture.
`SEC. 292. QUALITY GRADE LABELING OF IMPORTED MEAT AND MEAT FOOD
PRODUCTS.
`An imported carcass, part thereof, meat, or meat food product (as
defined by the Secretary) shall not bear a label that indicates a quality
grade issued by the Secretary.
`SEC. 293. REGULATIONS.
`The Secretary shall promulgate such regulations as are necessary to
ensure compliance with, and otherwise carry out, this subtitle.'.
Subtitle B--Crop Insurance
SEC. 1011. EQUAL CROP INSURANCE TREATMENT OF POTATOES AND SWEET
POTATOES.
Section 508(a)(2) of the Federal Crop Insurance Act (7 U.S.C.
1508(a)(2)) is amended in the first sentence by striking `and potatoes' and
inserting `, potatoes, and sweet potatoes'.
SEC. 1012. CONTINUOUS COVERAGE.
Section 508(e)(4) of the Federal Crop Insurance Act (7 U.S.C.
1508(e)(4)) is amended--
(1) in the paragraph heading, by striking `TEMPORARY PROHIBITION'
and inserting `PROHIBITION'; and
(2) by striking `through 2005' and inserting `and
subsequent'.
SEC. 1013. QUALITY LOSS ADJUSTMENT PROCEDURES.
Section 508(m)(3) of the Federal Crop Insurance Act (7 U.S.C.
1508(m)(3)) is amended--
(1) by striking `The Corporation' and inserting the
following:
`(A) REVIEW- The Corporation'; and
(2) by striking `Based on' and inserting the following:
`(B) PROCEDURES- Effective beginning not later than the 2003
reinsurance year, based on'.
SEC. 1014. CONSERVATION REQUIREMENTS.
(a) HIGHLY ERODIBLE LAND CONSERVATION- Section 1211(1) of the Food
Security Act of 1985 (16 U.S.C. 3811(1)) is amended--
(1) in subparagraph (A), by striking `production
flexibility';
(2) by redesignating subparagraphs (C) and (D) as subparagraphs (D)
and (E), respectively; and
(3) by inserting after subparagraph (B) the following:
`(C) an indemnity payment under the Federal Crop Insurance Act (7
U.S.C. 1501 et seq.);'.
(b) WETLAND CONSERVATION- Section 1221(b) of the Food Security Act of
1985 (16 U.S.C. 3821(b)) is amended--
(1) in paragraph (1), by striking `production
flexibility';
(2) by redesignating paragraphs (2) and (3) as paragraphs (5) and
(6), respectively; and
(3) by inserting after paragraph (1) the following:
`(2) A farm storage facility loan made under section 4(h) of the
Commodity Credit Corporation Charter Act (15 U.S.C. 714b(h)).
`(4) An indemnity payment under the Federal Crop Insurance Act (7
U.S.C. 1501 et seq.).'.
(c) CONTROLLED SUBSTANCES PRODUCTION CONTROL- Section 519(b) of the
Controlled Substances Act (21 U.S.C. 889(b)) is amended--
(A) by striking subparagraph (A) and inserting the
following:
`(A) contract payments under a contract, marketing assistance
loans, and any type of price support or payment made available under the
Agricultural Market Transition Act (7 U.S.C. 7201 et seq.), the Commodity
Credit Corporation Charter Act (15 U.S.C. 714 et seq.), or any other
Act;';
(B) by striking subparagraphs (C) and (D) and inserting the
following:
`(C) an indemnity payment under the Federal Crop Insurance Act (7
U.S.C. 1501 et seq.);
`(D) a disaster payment; or';
(2) in paragraph (2), by striking the period at the end and
inserting `; or'; and
(3) by adding at the end the following:
`(3) during the crop year--
`(A) a payment made pursuant to a contract entered into under the
environmental quality incentives program under chapter 4 of subtitle D of
title XII of the Food Security Act of 1985 (16 U.S.C. 3839aa et
seq.);
`(B) a payment under any other provision of subtitle D of title
XII of that Act (16 U.S.C. 3830 et seq.);
`(C) a payment under section 401 or 402 of the Agricultural Credit
Act of 1978 (16 U.S.C. 2201, 2202); or
`(D) a payment, loan, or other assistance under section 3 or 8 of
the Watershed Protection and Flood Prevention Act (16 U.S.C. 1003 and
1006a).'.
Subtitle C--Animal Health Protection
SEC. 1021. SHORT TITLE.
This subtitle may be cited as the `Animal Health Protection
Act'.
SEC. 1022. FINDINGS.
(1) the prevention, detection, control, and eradication of diseases
and pests of animals are essential to protect--
(B) the health and welfare of the people of the United
States;
(C) the economic interests of the livestock and related industries
of the United States;
(D) the environment of the United States; and
(E) interstate commerce and foreign commerce of the United States
in animals and other articles;
(2) animal diseases and pests are primarily transmitted by animals
and articles regulated under this subtitle;
(3) the health of animals is affected by the methods by which
animals and articles are transported in interstate commerce and foreign
commerce;
(4) the Secretary must continue to conduct research on animal
diseases and pests that constitute a threat to the livestock of the United
States; and
(5)(A) all animals and articles regulated under this subtitle are in
or affect interstate commerce or foreign commerce; and
(B) regulation by the Secretary and cooperation by the Secretary
with foreign countries, States or other jurisdictions, or persons are
necessary--
(i) to prevent and eliminate burdens on interstate commerce and
foreign commerce;
(ii) to regulate effectively interstate commerce and foreign
commerce; and
(iii) to protect the agriculture, environment, economy, and health
and welfare of the people of the United States.
SEC. 1023. DEFINITIONS.
(1) ANIMAL- The term `animal' means any member of the animal kingdom
(except a human).
(2) ARTICLE- The term `article' means any pest or disease or any
material or tangible object that could harbor a pest or disease.
(3) DISEASE- The term `disease' means--
(A) any infectious or noninfectious disease or condition affecting
the health of livestock; or
(B) any condition detrimental to production of
livestock.
(4) ENTER- The term `enter' means to move into the commerce of the
United States.
(5) EXPORT- The term `export' means to move from a place within the
territorial limits of the United States to a place outside the territorial
limits of the United States.
(6) FACILITY- The term `facility' means any structure.
(7) IMPORT- The term `import' means to move from a place outside the
territorial limits of the United States to a place within the territorial
limits of the United States.
(8) INDIAN TRIBE- The term `Indian tribe' has the meaning given the
term in section 4 of the Indian Self-Determination and Education Assistance
Act (25 U.S.C. 450b).
(9) INTERSTATE COMMERCE- The term `interstate commerce' means trade,
traffic, or other commerce--
(A) between a place in a State and a place in another State, or
between places within the same State but through any place outside that
State; or
(B) within the District of Columbia or any territory or possession
of the United States.
(10) LIVESTOCK- The term `livestock' means all farm-raised
animals.
(11) MEANS OF CONVEYANCE- The term `means of conveyance' means any
personal property used for or intended for use for the movement of any other
personal property.
(12) MOVE- The term `move' means--
(A) to carry, enter, import, mail, ship, or
transport;
(B) to aid, abet, cause, or induce carrying, entering, importing,
mailing, shipping, or transporting;
(C) to offer to carry, enter, import, mail, ship, or
transport;
(D) to receive in order to carry, enter, import, mail, ship, or
transport;
(E) to release into the environment; or
(F) to allow any of the activities described in this
paragraph.
(13) PEST- The term `pest' means any of the following that can
directly or indirectly injure, cause damage to, or cause disease in
livestock:
(F) An infectious agent or other pathogen.
(L) Any organism similar to or allied with any of the organisms
described in this paragraph.
(14) SECRETARY- The term `Secretary' means the Secretary of
Agriculture.
(15) STATE- The term `State' means any of the States, the District
of Columbia, the Commonwealth of Puerto Rico, Guam, the Commonwealth of the
Northern Mariana Islands, the Virgin Islands of the United States, or any
territory or possession of the United States.
(16) THIS SUBTITLE- Except when used in this section, the term `this
subtitle' includes any regulation or order issued by the Secretary under the
authority of this subtitle.
(17) UNITED STATES- The term `United States' means all of the
States.
SEC. 1024. RESTRICTION ON IMPORTATION OR ENTRY.
(a) IN GENERAL- The Secretary may prohibit or restrict--
(1) the importation or entry of any animal, article, or means of
conveyance, or use of any means of conveyance or facility, if the Secretary
determines that the prohibition or restriction is necessary to prevent the
introduction into or dissemination within the United States of any pest or
disease of livestock;
(2) the further movement of any animal that has strayed into the
United States if the Secretary determines that the prohibition or
restriction is necessary to prevent the introduction into or dissemination
within the United States of any pest or disease of livestock; and
(3) the use of any means of conveyance in connection with the
importation or entry of livestock if the Secretary determines that the
prohibition or restriction is necessary because the means of conveyance has
not been maintained in a clean and sanitary condition or does not have
accommodations for the safe and proper movement of livestock.
(b) REGULATIONS- The Secretary may promulgate regulations requiring
that any animal imported or entered be raised or handled under
post-importation quarantine conditions by or under the supervision of the
Secretary for the purpose of determining whether the animal is or may be
affected by any pest or disease of livestock.
(c) DESTRUCTION OR REMOVAL-
(1) IN GENERAL- The Secretary may order the destruction or removal
from the United States of--
(A) any animal, article, or means of conveyance that has been
imported but has not entered the United States if the Secretary determines
that destruction or removal from the United States is necessary to prevent
the introduction into or dissemination within the United States of any
pest or disease of livestock;
(B) any animal or progeny of any animal, article, or means of
conveyance that has been imported or entered in violation of this
subtitle; or
(C) any animal that has strayed into the United States if the
Secretary determines that destruction or removal from the United States is
necessary to prevent the introduction into or dissemination within the
United States of any pest or disease of livestock.
(2) REQUIREMENTS OF OWNERS-
(A) ORDERS TO DISINFECT- The Secretary may require the
disinfection of--
(i) a means of conveyance used in connection with the
importation of an animal;
(ii) an individual involved in the importation of an animal and
personal articles of the individual; and
(iii) any article used in the importation of an
animal.
(B) FAILURE TO COMPLY WITH ORDERS- If an owner fails to comply
with an order of the Secretary under this section, the Secretary
may--
(i) take remedial action, destroy, or remove from the United
States the animal or progeny of any animal, article, or means of
conveyance as authorized under paragraph (1); and
(ii) recover from the owner the costs of any care, handling,
disposal, or other action incurred by the Secretary in connection with
the remedial action, destruction, or removal.
SEC. 1025. EXPORTATION.
(a) IN GENERAL- The Secretary may prohibit or restrict--
(1) the exportation of any animal, article, or means of conveyance
if the Secretary determines that the prohibition or restriction is necessary
to prevent the dissemination from or within the United States of any pest or
disease of livestock;
(2) the exportation of any livestock if the Secretary determines
that the livestock is unfit to be moved;
(3) the use of any means of conveyance or facility in connection
with the exportation of any animal or article if the Secretary determines
that the prohibition or restriction is necessary to prevent the
dissemination from or within the United States of any pest or disease of
livestock; or
(4) the use of any means of conveyance in connection with the
exportation of livestock if the Secretary determines that the prohibition or
restriction is necessary because the means of conveyance has not been
maintained in a clean and sanitary condition or does not have accommodations
for the safe and proper movement and humane treatment of
livestock.
(b) REQUIREMENTS OF OWNERS-
(1) ORDERS TO DISINFECT- The Secretary may require the disinfection
of--
(A) a means of conveyance used in connection with the exportation
of an animal;
(B) an individual involved in the exportation of an animal and
personal articles of the individual; and
(C) any article used in the exportation of an
animal.
(2) FAILURE TO COMPLY WITH ORDERS- If an owner fails to comply with
an order of the Secretary under this section, the Secretary may--
(A) take remedial action with respect to the animal, article, or
means of conveyance referred to in paragraph (1); and
(B) recover from the owner the costs of any care, handling,
disposal, or other action incurred by the Secretary in connection with the
remedial action.
(c) CERTIFICATION- The Secretary may certify the classification,
quality, quantity, condition, processing, handling, or storage of any animal
or article intended for export.
SEC. 1026. INTERSTATE MOVEMENT.
The Secretary may prohibit or restrict--
(1) the movement in interstate commerce of any animal, article, or
means of conveyance if the Secretary determines that the prohibition or
restriction is necessary to prevent the introduction or dissemination of any
pest or disease of livestock; and
(2) the use of any means of conveyance or facility in connection
with the movement in interstate commerce of any animal or article if the
Secretary determines that the prohibition or restriction is necessary to
prevent the introduction or dissemination of any pest or disease of
livestock.
SEC. 1027. SEIZURE, QUARANTINE, AND DISPOSAL.
(a) IN GENERAL- The Secretary may hold, seize, quarantine, treat,
destroy, dispose of, or take other remedial action with respect to--
(1) any animal or progeny of any animal, article, or means of
conveyance that--
(A) is moving or has been moved in interstate commerce or has been
imported and entered; and
(B) the Secretary has reason to believe may carry, may have
carried, or may have been affected with or exposed to any pest or disease
of livestock at the time of movement or that is otherwise in violation of
this subtitle;
(2) any animal or progeny of any animal, article, or means of
conveyance that is moving or is being handled, or has moved or has been
handled, in interstate commerce in violation of this subtitle;
(3) any animal or progeny of any animal, article, or means of
conveyance that has been imported, and is moving or is being handled or has
moved or has been handled, in violation of this subtitle; or
(4) any animal or progeny of any animal, article, or means of
conveyance that the Secretary finds is not being maintained, or has not been
maintained, in accordance with any post-importation quarantine,
post-importation condition, post-movement quarantine, or post-movement
condition in accordance with this subtitle.
(b) EXTRAORDINARY EMERGENCIES-
(1) IN GENERAL- Subject to paragraph (2), if the Secretary
determines that an extraordinary emergency exists because of the presence in
the United States of a pest or disease of livestock and that the presence of
the pest or disease threatens the livestock of the United States, the
Secretary may--
(A) hold, seize, treat, apply other remedial actions to, destroy
(including preventative slaughter), or otherwise dispose of, any animal,
article, facility, or means of conveyance if the Secretary determines the
action is necessary to prevent the dissemination of the pest or disease;
and
(B) prohibit or restrict the movement or use within a State, or
any portion of a State of any animal or article, means of conveyance, or
facility if the Secretary determines that the prohibition or restriction
is necessary to prevent the dissemination of the pest or
disease.
(A) IN GENERAL- The Secretary may take action in a State under
this subsection only on finding that measures being taken by the State are
inadequate to control or eradicate the pest or disease, after review and
consultation with--
`(i) the Governor or an appropriate animal health official of
the State; or
`(ii) in the case of any animal, article, facility, or means of
conveyance under the jurisdiction of an Indian tribe, the head of the
Indian tribe.
(B) NOTICE- Subject to subparagraph (C), before any action is
taken in a State under subparagraph (A), the Secretary
shall--
(i) notify the Governor, an appropriate animal health official
of the State, or head of the Indian tribe of the proposed
action;
(ii) issue a public announcement of the proposed action;
and
(iii) publish in the Federal Register--
(I) the findings of the Secretary;
(II) a description of the proposed action;
and
(III) a statement of the reasons for the proposed
action.
(C) NOTICE AFTER ACTION- If it is not practicable to publish in
the Federal Register the information required under subparagraph (B)(iii)
before taking action under subparagraph (A), the Secretary shall publish
the information as soon as practicable, but not later than 10 business
days, after commencement of the action.
(c) QUARANTINE, DISPOSAL, OR OTHER REMEDIAL ACTION-
(1) IN GENERAL- The Secretary, in writing, may order the owner of
any animal, article, facility, or means of conveyance referred to in
subsection (a) or (b) to maintain in quarantine, dispose of, or take other
remedial action with respect to the animal, article, facility, or means of
conveyance, in a manner determined by the Secretary.
(2) FAILURE TO COMPLY WITH ORDERS- If the owner fails to comply with
the order of the Secretary, the Secretary may--
(A) seize, quarantine, dispose of, or take other remedial action
with respect to the animal, article, facility, or means of conveyance
under subsection (a) or (b); and
(B) recover from the owner the costs of any care, handling,
disposal, or other remedial action incurred by the Secretary in connection
with the seizure, quarantine, disposal, or other remedial
action.
(1) IN GENERAL- Except as provided in paragraph (3), the Secretary
shall compensate the owner of any animal, article, facility, or means of
conveyance that the Secretary requires to be destroyed under this
section.
(A) IN GENERAL- Subject to subparagraphs (B) and (C), the
compensation shall be based on the fair market value, as determined by the
Secretary, of the destroyed animal, article, facility, or means of
conveyance.
(B) LIMITATION- Compensation paid any owner under this subsection
shall not exceed the difference between--
(i) the fair market value of the destroyed animal, article,
facility, or means of conveyance; and
(ii) any compensation received by the owner from a State or
other source for the destroyed animal, article, facility, or means of
conveyance.
(C) REVIEWABILITY OF DETERMINATION- The determination by the
Secretary of the amount to be paid under this subsection shall be final
and not subject to judicial review.
(3) EXCEPTIONS- No payment shall be made by the Secretary under this
subsection for--
(A) any animal, article, facility, or means of conveyance that has
been moved or handled by the owner in violation of an agreement for the
control and eradication of diseases or pests or in violation of this
subtitle;
(B) any progeny of any animal or article, which animal or article
has been moved or handled by the owner of the animal or article in
violation of this subtitle;
(C) any animal, article, or means of conveyance that is refused
entry under this subtitle; or
(D) any animal, article, facility, or means of conveyance that
becomes or has become affected with or exposed to any pest or disease of
livestock because of a violation of an agreement for the control and
eradication of diseases or pests or a violation of this subtitle by the
owner.
SEC. 1028. INSPECTIONS, SEIZURES, AND WARRANTS.
(a) GUIDELINES- The activities authorized by this section shall be
carried out consistent with guidelines approved by the Attorney
General.
(b) WARRANTLESS INSPECTIONS- The Secretary may stop and inspect,
without a warrant, any person or means of conveyance moving--
(1) into the United States, to determine whether the person or means
of conveyance is carrying any animal or article regulated under this
subtitle;
(2) in interstate commerce, on probable cause to believe that the
person or means of conveyance is carrying any animal or article regulated
under this subtitle; or
(3) in intrastate commerce from any State, or any portion of a
State, quarantined under section 1027(b), on probable cause to believe that
the person or means of conveyance is carrying any animal or article
quarantined under section 1027(b).
(c) INSPECTIONS WITH WARRANTS-
(1) IN GENERAL- The Secretary may enter, with a warrant, any
premises in the United States for the purpose of making inspections and
seizures under this subtitle.
(2) APPLICATION AND ISSUANCE OF WARRANTS-
(A) IN GENERAL- On proper oath or affirmation showing probable
cause to believe that there is on certain premises any animal, article,
facility, or means of conveyance regulated under this subtitle, a United
States judge, a judge of a court of record in the United States, or a
United States magistrate judge may issue a warrant for the entry on
premises within the jurisdiction of the judge or magistrate to make any
inspection or seizure under this subtitle.
(B) EXECUTION- The warrant may be applied for and executed by the
Secretary or any United States marshal.
SEC. 1029. DETECTION, CONTROL, AND ERADICATION OF DISEASES AND
PESTS.
(a) IN GENERAL- The Secretary may carry out operations and measures to
detect, control, or eradicate any pest or disease of livestock (including the
drawing of blood and diagnostic testing of animals), including animals at a
slaughterhouse, stockyard, or other point of concentration.
(b) COMPENSATION- The Secretary may pay a claim arising out of the
destruction of any animal, article, or means of conveyance consistent with the
purposes of this subtitle.
SEC. 1030. VETERINARY ACCREDITATION PROGRAM.
(a) IN GENERAL- The Secretary may establish a veterinary accreditation
program that is consistent with this subtitle, including the establishment of
standards of conduct for accredited veterinarians.
(b) CONSULTATION- The Secretary shall consult with State animal health
officials regarding the establishment of the veterinary accreditation
program.
SEC. 1031. COOPERATION.
(a) IN GENERAL- To carry out this subtitle, the Secretary may
cooperate with other Federal agencies, States or political subdivisions of
States, national governments of foreign countries, local governments of
foreign countries, domestic or international organizations, domestic or
international associations, Indian tribes, and other persons.
(b) RESPONSIBILITY- The person or other entity cooperating with the
Secretary shall be responsible for the authority necessary to carry out
operations or measures--
(1) on all land and property within a foreign country or State, or
under the jurisdiction of an Indian tribe, other than on land and property
owned or controlled by the United States; and
(2) using other facilities and means, as determined by the
Secretary.
(1) IN GENERAL- The Secretary may, independently or in cooperation
with national governments of foreign countries or international
organizations or associations, produce and sell sterile screwworms to any
national government of a foreign country or international organization or
association, if the Secretary determines that the livestock industry and
related industries of the United States will not be adversely affected by
the production and sale.
(A) INDEPENDENT PRODUCTION AND SALE- If the Secretary
independently produces and sells sterile screwworms under paragraph (1),
the proceeds of the sale shall be--
(i) deposited into the Treasury of the United States;
and
(ii) credited to the account from which the operating expenses
of the facility producing the sterile screwworms have been
paid.
(B) COOPERATIVE PRODUCTION AND SALE-
(i) IN GENERAL- If the Secretary cooperates to produce and sell
sterile screwworms under paragraph (1), the proceeds of the sale shall
be divided between the United States and the cooperating national
government or international organization or association in a manner
determined by the Secretary.
(ii) ACCOUNT- The United States portion of the proceeds shall
be--
(I) deposited into the Treasury of the United States;
and
(II) credited to the account from which the operating expenses
of the facility producing the sterile screwworms have been
paid.
(d) COOPERATION IN PROGRAM ADMINISTRATION- The Secretary may cooperate
with State authorities, Indian tribe authorities, or other persons in the
administration of regulations for the improvement of livestock and livestock
products.
(e) CONSULTATION WITH OTHER FEDERAL AGENCIES-
(1) IN GENERAL- The Secretary shall consult with the head of a
Federal agency with respect to any activity that is under the jurisdiction
of the Federal agency.
(2) LEAD AGENCY- The Department of Agriculture shall be the lead
agency with respect to issues related to pests and diseases of
livestock.
SEC. 1032. REIMBURSABLE AGREEMENTS.
(a) AUTHORITY TO ENTER INTO AGREEMENTS- The Secretary may enter into
reimbursable fee agreements with persons for preclearance of animals or
articles at locations outside the United States for movement into the United
States.
(b) FUNDS COLLECTED FOR PRECLEARANCE- Funds collected for preclearance
activities shall--
(1) be credited to accounts that may be established by the Secretary
for carrying out this section; and
(2) remain available until expended for the preclearance activities,
without fiscal year limitation.
(c) PAYMENT OF EMPLOYEES-
(1) IN GENERAL- Notwithstanding any other law, the Secretary may pay
an officer or employee of the Department of Agriculture performing services
under this subtitle relating to imports into and exports from the United
States for all overtime, night, or holiday work performed by the officer or
employee at a rate of pay determined by the Secretary.
(A) IN GENERAL- The Secretary may require a person for whom the
services are performed to reimburse the Secretary for any expenses paid by
the Secretary for the services under this subsection.
(B) USE OF FUNDS- All funds collected under this subsection
shall--
(i) be credited to the account that incurs the costs;
and
(ii) remain available until expended, without fiscal year
limitation.
(d) LATE PAYMENT PENALTIES-
(1) COLLECTION- On failure by a person to reimburse the Secretary in
accordance with this section, the Secretary may assess a late payment
penalty against the person, including interest on overdue funds, as required
by section 3717 of title 31, United States Code.
(2) USE OF FUNDS- Any late payment penalty and any accrued interest
shall--
(A) be credited to the account that incurs the costs;
and
(B) remain available until expended, without fiscal year
limitation.
SEC. 1033. ADMINISTRATION AND CLAIMS.
(a) ADMINISTRATION- To carry out this subtitle, the Secretary
may--
(1) acquire and maintain real or personal property;
(4) notwithstanding chapter 63 of title 31, United States Code,
enter into a contract, cooperative agreement, memorandum of understanding,
or other agreement.
(1) IN GENERAL- Except as provided in paragraph (2), the Secretary
may pay a tort claim, in the manner authorized by the first paragraph of
section 2672 of title 28, United States Code, if the claim arises outside
the United States in connection with an activity authorized under this
subtitle.
(2) REQUIREMENTS- A claim may not be allowed under this subsection
unless the claim is presented in writing to the Secretary not later than 2
years after the date on which the claim arises.
SEC. 1034. PENALTIES.
(a) CRIMINAL PENALTIES- Any person that knowingly violates this
subtitle, or that knowingly forges, counterfeits, or, without authority from
the Secretary, uses, alters, defaces, or destroys any certificate, permit, or
other document provided under this subtitle shall be guilty of a misdemeanor,
and, on conviction, shall be fined in accordance with title 18, United States
Code, imprisoned not more than 1 year, or both.
(1) IN GENERAL- Any person that violates this subtitle, or that
forges, counterfeits, or, without authority from the Secretary, uses,
alters, defaces, or destroys any certificate, permit, or other document
provided under this subtitle may, after notice and opportunity for a hearing
on the record, be assessed a civil penalty by the Secretary that does not
exceed the greater of--
(A)(i) $50,000 in the case of any individual, except that the
civil penalty may not exceed $1,000 in the case of an initial violation of
this subtitle by an individual moving regulated articles not for monetary
gain;
(ii) $250,000 in the case of any other person for each violation;
and
(iii) $500,000 for all violations adjudicated in a single
proceeding; or
(B) twice the gross gain or gross loss for any violation or
forgery, counterfeiting, or unauthorized use, alteration, defacing or
destruction of a certificate, permit, or other document provided under
this subtitle that results in the person's deriving pecuniary gain or
causing pecuniary loss to another person.
(2) FACTORS IN DETERMINING CIVIL PENALTY- In determining the amount
of a civil penalty, the Secretary shall take into account the nature,
circumstance, extent, and gravity of the violation or violations and the
Secretary may consider, with respect to the violator--
(B) the effect on ability to continue to do
business;
(C) any history of prior violations;
(D) the degree of culpability; and
(E) such other factors as the Secretary considers to be
appropriate.
(3) SETTLEMENT OF CIVIL PENALTIES- The Secretary may compromise,
modify, or remit, with or without conditions, any civil penalty that may be
assessed under this subsection.
(A) FINAL ORDER- The order of the Secretary assessing a civil
penalty shall be treated as a final order reviewable under chapter 158 of
title 28, United States Code.
(B) REVIEW- The validity of the order of the Secretary may not be
reviewed in an action to collect the civil penalty.
(C) INTEREST- Any civil penalty not paid in full when due under an
order assessing the civil penalty shall thereafter accrue interest until
paid at the rate of interest applicable to civil judgments of the courts
of the United States.
(c) SUSPENSION OR REVOCATION OF ACCREDITATION-
(1) IN GENERAL- The Secretary may, after notice and opportunity for
a hearing on the record, suspend or revoke the accreditation of any
veterinarian accredited under this subtitle that violates this
subtitle.
(2) FINAL ORDER- The order of the Secretary suspending or revoking
accreditation shall be treated as a final order reviewable under chapter 158
of title 28, United States Code.
(A) IN GENERAL- Notwithstanding paragraph (1), the Secretary may
summarily suspend the accreditation of a veterinarian who the Secretary
has reason to believe has violated this subtitle.
(B) HEARINGS- The Secretary shall provide the accredited
veterinarian with a subsequent notice and an opportunity for a prompt
post-suspension hearing on the record.
(d) LIABILITY FOR ACTS OF AGENTS- In the construction and enforcement
of this subtitle, the act, omission, or failure of any officer, agent, or
person acting for or employed by any other person within the scope of the
employment or office of the officer, agent, or person, shall be deemed also to
be the act, omission, or failure of the other person.
(e) GUIDELINES FOR CIVIL PENALTIES- The Secretary shall coordinate
with the Attorney General to establish guidelines to determine under what
circumstances the Secretary may issue a civil penalty or suitable notice of
warning in lieu of prosecution by the Attorney General of a violation of this
subtitle.
SEC. 1035. ENFORCEMENT.
(a) COLLECTION OF INFORMATION-
(1) IN GENERAL- The Secretary may gather and compile information and
conduct any inspection or investigation that the Secretary considers to be
necessary for the administration or enforcement of this subtitle.
(A) IN GENERAL- The Secretary shall have power to issue a subpoena
to compel the attendance and testimony of any witness and the production
of any documentary evidence relating to the administration or enforcement
of this subtitle or any matter under investigation in connection with this
subtitle.
(B) LOCATION OF PRODUCTION- The attendance of any witness and
production of documentary evidence relevant to the inquiry may be required
from any place in the United States.
(i) IN GENERAL- In case of disobedience to a subpoena by any
person, the Secretary may request the Attorney General to invoke the aid
of any court of the United States within the jurisdiction in which the
investigation is conducted, or where the person resides, is found,
transacts business, is licensed to do business, or is incorporated, to
require the attendance and testimony of any witness and the production
of documentary evidence.
(ii) NONCOMPLIANCE- In case of a refusal to obey a subpoena
issued to any person, a court may order the person to appear before the
Secretary and give evidence concerning the matter in question or to
produce documentary evidence.
(iii) CONTEMPT- Any failure to obey the order of the court may
be punished by the court as contempt of the court.
(i) WITNESSES- A witness summoned by the Secretary under this
subtitle shall be paid the same fees and mileage that are paid to a
witness in a court of the United States.
(ii) DEPOSITIONS- A witness whose deposition is taken, and the
person taking the deposition, shall be entitled to the same fees that
are paid for similar services in a court of the United
States.
(i) PUBLICATION- The Secretary shall publish procedures for the
issuance of subpoenas under this section.
(ii) REVIEW- The procedures shall include a requirement that
subpoenas be reviewed for legal sufficiency and, to be effective, be
signed by the Secretary.
(iii) DELEGATION- If the authority to sign a subpoena is
delegated to an agency other than the Office of Administrative Law
Judges, the agency receiving the delegation shall seek review of the
subpoena for legal sufficiency outside that agency.
(b) AUTHORITY OF ATTORNEY GENERAL- The Attorney General may--
(1) prosecute, in the name of the United States, all criminal
violations of this subtitle that are referred to the Attorney General by the
Secretary or are brought to the notice of the Attorney General by any
person;
(2) bring an action to enjoin the violation of or to compel
compliance with this subtitle, or to enjoin any interference by any person
with the Secretary in carrying out this subtitle, in any case in which the
Secretary has reason to believe that the person has violated, or is about to
violate this subtitle or has interfered, or is about to interfere, with the
actions of the Secretary; or
(3) bring an action for the recovery of any unpaid civil penalty,
funds under a reimbursable agreement, late payment penalty, or interest
assessed under this subtitle.
(1) IN GENERAL- The United States district courts, the District
Court of Guam, the District Court of the Northern Mariana Islands, the
District Court of the Virgin Islands, the highest court of American Samoa,
and the United States courts of the other territories and possessions are
vested with jurisdiction in all cases arising under this
subtitle.
(2) VENUE- Any action arising under this subtitle may be brought,
and process may be served, in the judicial district where a violation or
interference occurred or is about to occur, or where the person charged with
the violation, interference, impending violation, impending interference, or
failure to pay resides, is found, transacts business, is licensed to do
business, or is incorporated.
(3) EXCEPTION- Paragraphs (1) and (2) do not apply to subsections
(b) and (c) of section 1034.
SEC. 1036. REGULATIONS AND ORDERS.
The Secretary may promulgate such regulations, and issue such orders,
as the Secretary determines necessary to carry out this subtitle.
SEC. 1037. AUTHORIZATION OF APPROPRIATIONS.
(a) IN GENERAL- There are authorized to be appropriated such sums as
are necessary to carry out this subtitle.
(1) IN GENERAL- In connection with an emergency under which a pest
or disease of livestock threatens any segment of agricultural production in
the United States, the Secretary may transfer from other appropriations or
funds available to the agencies or corporations of the Department of
Agriculture such funds as the Secretary determines are necessary for the
arrest, control, eradication, or prevention of the spread of the pest or
disease of livestock and for related expenses.
(2) AVAILABILITY- Any funds transferred under this subsection shall
remain available until expended, without fiscal year limitation.
(c) USE OF FUNDS- In carrying out this subtitle, the Secretary may use
funds made available to carry out this subtitle for--
(1) printing and binding, without regard to section 501 of title 44,
United States Code;
(2) the employment of civilian nationals in foreign countries;
and
(3) the construction and operation of research laboratories,
quarantine stations, and other buildings and facilities for special
purposes.
SEC. 1038. REPEALS AND CONFORMING AMENDMENTS.
(a) REPEALS- The following provisions of law are repealed:
(1) Public Law 97-46 (7 U.S.C. 147b).
(2) Section 101(b) of the Act of September 21, 1944 (7 U.S.C.
429).
(3) The Act of August 28, 1950 (7 U.S.C. 2260).
(4) Section 919 of the Federal Agriculture Improvement and Reform
Act of 1996 (7 U.S.C. 2260a).
(5) Section 306 of the Tariff Act of 1930 (19 U.S.C.
1306).
(6) Sections 6 through 8 and 10 of the Act of August 30, 1890 (21
U.S.C. 102 through 105).
(7) The Act of February 2, 1903 (21 U.S.C. 111, 120 through
122).
(8) Sections 2 through 9, 11, and 13 of the Act of May 29, 1884 (21
U.S.C. 112, 113, 114, 114a, 114a-1, 115 through 120, 130).
(9) The first section and sections 2, 3, and 5 of the Act of
February 28, 1947 (21 U.S.C. 114b, 114c, 114d, 114d-1).
(10) The Act of June 16, 1948 (21 U.S.C. 114e, 114f).
(11) Public Law 87-209 (21 U.S.C. 114g, 114h).
(12) Section 2506 of the Food, Agriculture, Conservation, and Trade
Act of 1990 (21 U.S.C. 114i).
(13) The third and fourth provisos of the fourth paragraph under the
heading `BUREAU OF ANIMAL INDUSTRY' of the Act of May 31, 1920 (21 U.S.C.
116).
(14) The first section and sections 2, 3, 4, and 6 of the Act of
March 3, 1905 (21 U.S.C. 123 through 127).
(15) The first proviso under the heading `GENERAL EXPENSES, BUREAU
OF ANIMAL INDUSTRY' under the heading `BUREAU OF ANIMAL INDUSTRY' of the Act
of June 30, 1914 (21 U.S.C. 128).
(16) The fourth proviso under the heading `SALARIES AND EXPENSES'
under the heading `ANIMAL AND PLANT HEALTH INSPECTION SERVICE' of title I of
the Agriculture, Rural Development, Food and Drug Administration, and
Related Agencies Appropriations Act, 2001 (21 U.S.C. 129).
(17) The third paragraph under the heading `MISCELLANEOUS' of the
Act of May 26, 1910 (21 U.S.C. 131).
(18) The first section and sections 2 through 6 and 11 through 13 of
Public Law 87-518 (21 U.S.C. 134 through 134h).
(19) Public Law 91-239 (21 U.S.C. 135 through 135b).
(20) Sections 12 through 14 of the Federal Meat Inspection Act (21
U.S.C. 612 through 614).
(21) Chapter 39 of title 46, United States Code.
(b) CONFORMING AMENDMENTS-
(1) Section 414(b) of the Plant Protection Act (7 U.S.C. 7714(b)) is
amended--
(A) in paragraph (1), by striking `, or the owner's agent,';
and
(B) in paragraph (2), by striking `or agent of the owner' each
place it appears.
(2) Section 423 of the Plant Protection Act (7 U.S.C. 7733) is
amended--
(A) by striking subsection (b) and inserting the
following:
`(b) LOCATION OF PRODUCTION- The attendance of any witness and
production of documentary evidence relevant to the inquiry may be required
from any place in the United States.';
(B) in the third sentence of subsection (e), by inserting `to an
agency other than the Office of Administrative Law Judges' after `is
delegated'; and
(C) by striking subsection (f).
(3) Section 11(h) of the Endangered Species Act of 1973 (16 U.S.C.
1540(h)) is amended in the first sentence by striking `animal quarantine
laws (21 U.S.C. 101-105, 111-135b, and 612-614)' and inserting `animal
quarantine laws (as defined in section 2509(f) of the Food, Agriculture,
Conservation, and Trade Act of 1990 (21 U.S.C. 136a(f))'.
(4) Section 18 of the Federal Meat Inspection Act (21 U.S.C. 618) is
amended by striking `of the cattle' and all that follows through `as herein
described' and inserting `of the carcasses and products of cattle, sheep,
swine, goats, horses, mules, and other equines'.
(5) Section 2509 of the Food, Agriculture, Conservation, and Trade
Act of 1990 (21 U.S.C. 136a) is amended--
(A) in subsection (c), by inserting after paragraph (1) the
following:
`(2) VETERINARY DIAGNOSTICS- The Secretary may prescribe and collect
fees to recover the costs of carrying out the provisions of the Animal
Health Protection Act that relate to veterinary diagnostics.';
and
(B) in subsection (f)(1), by striking subparagraphs (B) through
(O) and inserting the following:
`(B) section 9 of the Act of August 30, 1890 (21 U.S.C.
101);
`(C) the Animal Health Protection Act; or
`(D) any other Act administered by the Secretary relating to plant
or animal diseases or pests.'.
(c) EFFECT ON REGULATIONS- A regulation issued under a provision of
law repealed by subsection (a) shall remain in effect until the Secretary
issues a regulation under section 1036 that supersedes the earlier
regulation.
Subtitle D--General Provisions
SEC. 1041. FEES FOR PESTICIDES.
(1) AMOUNTS FOR REGISTRANTS- Section 4(i)(5) of the Federal
Insecticide, Fungicide, and Rodenticide Act (7 U.S.C. 136a-1(i)(5)) is
amended--
(A) in subparagraph (A), by striking `each year' and all that
follows and inserting `each year $2,300 for each
registration';
(B) in subparagraph (D)--
(i) in clause (i), by striking `$55,000' and inserting
`$70,000'; and
(ii) in clause (ii), by striking `$95,000' and inserting
`$120,000'; and
(C) in subparagraph (E)(i)--
(i) in subclause (I) by striking `$38,500' and inserting
`$46,000'; and
(ii) in subclause (II), by striking `$66,500' and inserting
`$80,000'.
(2) TOTAL AMOUNT OF FEES- Section 4(i)(5)(C) of the Federal
Insecticide, Fungicide, and Rodenticide Act (7 U.S.C. 136(a)-1(i)(5)(C)) is
amended--
(A) by striking `(C)(i) The' and inserting the
following:
`(C) TOTAL AMOUNT OF FEES- The';
(B) by striking `$14,000,000 each fiscal year' and inserting
`$20,000,000 for the period beginning on January 1, 2002, and ending on
February 28, 2002'; and
(C) by striking clause (ii).
(3) DEFINITION OF SMALL BUSINESS- Section 4(i)(5)(E)(ii) of the
Federal Insecticide, Fungicide, and Rodenticide Act (7 U.S.C.
136a-1(i)(5)(E)(ii)) is amended--
(A) in subclause (I), by striking `150' and inserting `500';
and
(B) in subclause (II), by striking `gross revenue from chemicals
that did not exceed $40,000,000' and inserting `global gross revenue from
pesticides that did not exceed $60,000,000'.
(4) PERIOD OF EFFECTIVENESS- Section 4(i)(5) of the Federal
Insecticide, Fungicide, and Rodenticide Act (7 U.S.C. 136a-1(i)(5)) is
amended by striking subparagraph (H) and inserting the following:
`(H) PERIOD OF EFFECTIVENESS- This paragraph shall be in effect
during the period beginning on January 1, 2002, and ending on February 28,
2002.'.
(b) OTHER FEES- Section 4(i)(6) of the Federal Insecticide, Fungicide,
and Rodenticide Act (7 U.S.C. 136a-1(i)(6)) is amended by striking `the date
of the enactment of this section and ending on September 30, 2001' and
inserting `January 1, 2002, and ending on February 28, 2002'.
(c) EXPEDITED PROCESSING OF SIMILAR APPLICATIONS- Section 4(k)(3) of
the Federal Insecticide, Fungicide, and Rodenticide Act (7 U.S.C.
136a-1(k)(3)) is amended--
(1) in the paragraph heading, by striking `EXPEDITED' and inserting
`REVIEW OF INERT INGREDIENTS; EXPEDITED'; and
(2) in subparagraph (A)--
(A) by striking `each of the' and all that follows through `such
fiscal year' and inserting `the period beginning on January 1, 2002, and
ending on February 28, 2002, 1/7 of the maintenance fees collected during
the period';
(B) by redesignating clauses (i), (ii), and (iii) as subclauses
(I), (II), and (III), respectively, and adjusting the margins
appropriately; and
(C) by striking `assure the expedited processing and review of any
applicant that' and inserting the following:
`(i) review and evaluate inert ingredients; and
`(ii) ensure the expedited processing and review of any
application that--'.
(d) PESTICIDE TOLERANCE PROCESSING FEES- Section 408(m)(1) of the
Federal Food, Drug, and Cosmetic Act (21 U.S.C. 346a(m)(1)) is
amended--
(1) by striking `The Administrator' and inserting the
following:
`(A) IN GENERAL- The Administrator';
(2) by striking `Under the regulations' and inserting the
following:
`(B) INCLUSIONS- Under the regulations';
(3) by redesignating subparagraphs (A), (B), (C), and (D) as clauses
(i), (ii), (iii), and (iv), respectively, and adjusting the margins
appropriately;
(4) by striking `The regulations may' and inserting the
following:
`(C) WAIVER; REFUND- The regulations may'; and
(5) by adding at the end the following:
`(D) ANNUAL ADJUSTMENT OF FEES- The Administrator may annually
promulgate regulations to implement changes in the amounts in the schedule
of pesticide tolerance processing fees in effect on the date of enactment
of this subparagraph by the same percentage as the annual adjustment to
the Federal General Schedule pay scale under section 5303 of title 5,
United States Code.
`(E) PERIOD OF EFFECTIVENESS- This paragraph shall be in effect
during the period beginning on January 1, 2002, and ending on February 28,
2002.'.
SEC. 1042. PEST MANAGEMENT IN SCHOOLS.
(a) SHORT TITLE- This section may be cited as the `School Environment
Protection Act of 2002'.
(b) PEST MANAGEMENT- The Federal Insecticide, Fungicide, and
Rodenticide Act is amended--
(1) by redesignating sections 33 and 34 (7 U.S.C. 136x, 136y) as
sections 34 and 35, respectively; and
(2) by inserting after section 32 (7 U.S.C. 136w-7) the
following:
`SEC. 33. PEST MANAGEMENT IN SCHOOLS.
`(a) DEFINITIONS- In this section:
`(1) BAIT- The term `bait' means a pesticide that contains an
ingredient that serves as a feeding stimulant, odor, pheromone, or other
attractant for a target pest.
`(2) CONTACT PERSON- The term `contact person' means an individual
who is--
`(A) knowledgeable about school pest management plans;
and
`(B) designated by a local educational agency to carry out
implementation of the school pest management plan of a
school.
`(3) EMERGENCY- The term `emergency' means an urgent need to
mitigate or eliminate a pest that threatens the health or safety of a
student or staff member.
`(4) LOCAL EDUCATIONAL AGENCY- The term `local educational agency'
has the meaning given the term in section 3 of the Elementary and Secondary
Education Act of 1965.
`(A) IN GENERAL- The term `school' means a public--
`(i) elementary school (as defined in section 3 of the
Elementary and Secondary Education Act of 1965);
`(ii) secondary school (as defined in section 3 of that
Act);
`(iii) kindergarten or nursery school that is part of an
elementary school or secondary school; or
`(iv) tribally-funded school.
`(B) INCLUSIONS- The term `school' includes any school building,
and any area outside of a school building (including a lawn, playground,
sports field, and any other property or facility), that is controlled,
managed, or owned by the school or school district.
`(6) SCHOOL PEST MANAGEMENT PLAN- The term `school pest management
plan' means a pest management plan developed under subsection
(b).
`(A) IN GENERAL- The term `staff member' means a person employed
at a school or local educational agency.
`(B) EXCLUSIONS- The term `staff member' does not
include--
`(i) a person hired by a school, local educational agency, or
State to apply a pesticide; or
`(ii) a person assisting in the application of a
pesticide.
`(8) STATE AGENCY- The term `State agency' means the an agency of a
State, or an agency of an Indian tribe or tribal organization (as those
terms are defined in section 4 of the Indian Self-Determination and
Education Assistance Act (25 U.S.C. 450b)), that exercises primary
jurisdiction over matters relating to pesticide regulation.
`(9) UNIVERSAL NOTIFICATION- The term `universal notification' means
notice provided by a local educational agency or school to--
`(A) parents, legal guardians, or other persons with legal
standing as parents of each child attending the school; and
`(B) staff members of the school.
`(b) SCHOOL PEST MANAGEMENT PLANS-
`(A) GUIDANCE- As soon as practicable (but not later than 180
days) after the date of enactment of the School Environment Protection Act
of 2002, the Administrator shall develop, in accordance with this
section--
`(i) guidance for a school pest management plan;
and
`(ii) a sample school pest management plan.
`(B) PLAN- As soon as practicable (but not later than 1 year)
after the date of enactment of the School Environment Protection Act of
2002, each State agency shall develop and submit to the Administrator for
approval, as part of the State cooperative agreement under section 23, a
school pest management plan for local educational agencies in the
State.
`(C) COMPONENTS- A school pest management plan developed under
subparagraph (B) shall, at a minimum--
`(i) implement a system that--
`(I) eliminates or mitigates health risks, or economic or
aesthetic damage, caused by pests;
`(aa) integrated methods;
`(bb) site or pest inspection;
`(cc) pest population monitoring; and
`(dd) an evaluation of the need for pest management;
and
`(III) is developed taking into consideration pest management
alternatives (including sanitation, structural repair, and mechanical,
biological, cultural, and pesticide strategies) that minimize health
and environmental risks;
`(ii) require, for pesticide applications at the school,
universal notification to be provided--
`(I) at the beginning of the school year;
`(II) at the midpoint of the school year;
and
`(III) at the beginning of any summer session, as determined
by the school;
`(iii) establish a registry of staff members of a school, and of
parents, legal guardians, or other persons with legal standing as
parents of each child attending the school, that have requested to be
notified in advance of any pesticide application at the
school;
`(iv) establish guidelines that are consistent with the
definition of a school pest management plan under subsection
(a);
`(v) require that each local educational agency use a certified
applicator or a person authorized by the State agency to implement the
school pest management plans;
`(vi) be consistent with the State cooperative agreement under
section 23; and
`(vii) require the posting of signs in accordance with paragraph
(4)(G).
`(D) APPROVAL BY ADMINISTRATOR- Not later than 90 days after
receiving a school pest management plan submitted by a State agency under
subparagraph (B), the Administrator shall--
`(i) determine whether the school pest management plan, at a
minimum, meets the requirements of subparagraph (C);
and
`(ii)(I) if the Administrator determines that the school pest
management plan meets the requirements, approve the school pest
management plan as part of the State cooperative agreement;
or
`(II) if the Administrator determines that the school pest
management plan does not meet the requirements--
`(aa) disapprove the school pest management
plan;
`(bb) provide the State agency with recommendations for and
assistance in revising the school pest management plan to meet the
requirements; and
`(cc) provide a 90-day deadline by which the State agency
shall resubmit the revised school pest management plan to obtain
approval of the plan, in accordance with the State cooperative
agreement.
`(E) DISTRIBUTION OF STATE PLAN TO SCHOOLS- On approval of the
school pest management plan of a State agency, the State agency shall make
the school pest management plan available to each local educational agency
in the State.
`(F) EXCEPTION FOR EXISTING STATE PLANS- If, on the date of
enactment of the School Environment Protection Act of 2002, a State has
implemented a school pest management plan that, at a minimum, meets the
requirements under subparagraph (C) (as determined by the Administrator),
the State agency may maintain the school pest management plan and shall
not be required to develop a new school pest management plan under
subparagraph (B).
`(2) IMPLEMENTATION BY LOCAL EDUCATIONAL AGENCIES-
`(A) IN GENERAL- Not later than 1 year after the date on which a
local educational agency receives a copy of a school pest management plan
of a State agency under paragraph (1)(E), the local educational agency
shall develop and implement in each of the schools under the jurisdiction
of the local educational agency a school pest management plan that meets
the standards and requirements under the school pest management plan of
the State agency, as determined by the Administrator.
`(B) EXCEPTION FOR EXISTING PLANS- If, on the date of enactment of
the School Environment Protection Act of 2002, a State maintains a school
pest management plan that, at a minimum, meets the standards and criteria
established under this section (as determined by the Administrator), and a
local educational agency in the State has implemented the State school
pest management plan, the local educational agency may maintain the school
pest management plan and shall not be required to develop and implement a
new school pest management plan under subparagraph (A).
`(C) APPLICATION OF PESTICIDES AT SCHOOLS- A school pest
management plan shall prohibit--
`(i) the application of a pesticide (other than a pesticide,
including a bait, gel or paste, described in paragraph (4)(C)) to any
area or room at a school while the area or room is occupied or in use by
students or staff members (except students or staff members
participating in regular or vocational agricultural instruction
involving the use of pesticides); and
`(ii) the use by students or staff members of an area or room
treated with a pesticide by broadcast spraying, baseboard spraying,
tenting, or fogging during--
`(I) the period specified on the label of the pesticide during
which a treated area or room should remain unoccupied;
or
`(II) if there is no period specified on the label, the
24-hour period beginning at the end of the
treatment.
`(A) IN GENERAL- Each local educational agency shall designate a
contact person to carry out a school pest management plan in schools under
the jurisdiction of the local educational agency.
`(B) DUTIES- The contact person of a local educational agency
shall--
`(i) maintain information about the scheduling of pesticide
applications in each school under the jurisdiction of the local
educational agency;
`(ii) act as a contact for inquiries, and disseminate
information requested by parents or guardians, about the school pest
management plan;
`(iii) maintain and make available to parents, legal guardians,
or other persons with legal standing as parents of each child attending
the school, before and during the notice period and after
application--
`(I) copies of material safety data sheet for pesticides
applied at the school, or copies of material safety data sheets for
end-use dilutions of pesticides applied at the school, if data sheets
are available;
`(II) labels and fact sheets approved by the Administrator for
all pesticides that may be used by the local educational agency;
and
`(III) any final official information related to the
pesticide, as provided to the local educational agency by the State
agency; and
`(iv) for each school, maintain all pesticide use data for each
pesticide used at the school (other than antimicrobial pesticides (as
defined in clauses (i) and (ii) of section 2(mm)(1)(A))) for at least 3
years after the date on which the pesticide is applied;
and
`(v) make that data available for inspection on request by any
person.
`(A) UNIVERSAL NOTIFICATION- At the beginning of each school year,
at the midpoint of each school year, and at the beginning of any summer
session (as determined by the school), a local educational agency or
school shall provide to staff members of a school, and to parents, legal
guardians, and other persons with legal standing as parents of students
enrolled at the school, a notice describing the school pest management
plan that includes--
`(i) a summary of the requirements and procedures under the
school pest management plan;
`(ii) a description of any potential pest problems that the
school may experience (including a description of the procedures that
may be used to address those problems);
`(iii) the address, telephone number, and website address of the
Office of Pesticide Programs of the Environmental Protection Agency;
and
`(iv) the following statement (including information to be
supplied by the school as indicated in brackets):
`As part of a school pest management plan, XXXXX (insert school
name) may use pesticides to control pests. The Environmental Protection Agency
(EPA) and XXXXX (insert name of State agency exercising jurisdiction
over pesticide registration and use) registers pesticides for that use. EPA
continues to examine registered pesticides to determine that use of the
pesticides in accordance with instructions printed on the label does not pose
unreasonable risks to human health and the environment. Nevertheless, EPA
cannot guarantee that registered pesticides do not pose risks, and unnecessary
exposure to pesticides should be avoided. Based in part on recommendations of
a 1993 study by the National Academy of Sciences that reviewed registered
pesticides and their potential to cause unreasonable adverse effects on human
health, particularly on the health of pregnant women, infants, and children,
Congress enacted the Food Quality Protection Act of 1996. That law requires
EPA to reevaluate all registered pesticides and new pesticides to measure
their safety, taking into account the unique exposures and sensitivity that
pregnant women, infants, and children may have to pesticides. EPA review under
that law is ongoing. You may request to be notified at least 24 hours in
advance of pesticide applications to be made and receive information about the
applications by registering with the school. Certain pesticides used by the
school (including baits, pastes, and gels) are exempt from notification
requirements. If you would like more information concerning any pesticide
application or any product used at the school, contact XXXXX (insert
name and phone number of contact person).'.
`(B) NOTIFICATION TO PERSONS ON REGISTRY-
`(i) IN GENERAL- Except as provided in clause (ii) and paragraph
(5)--
`(I) notice of an upcoming pesticide application at a school
shall be provided to each person on the registry of the school not
later than 24 hours before the end of the last business day during
which the school is in session that precedes the day on which the
application is to be made; and
`(II) the application of a pesticide for which a notice is
given under subclause (I) shall not commence before the end of the
business day.
`(ii) NOTIFICATION CONCERNING PESTICIDES USED IN CURRICULA- If
pesticides are used as part of a regular vocational agricultural
curriculum of the school, a notice containing the information described
in subclauses (I), (IV), (VI), and (VII) of clause (iii) for all
pesticides that may be used as a part of that curriculum shall be
provided to persons on the registry only once at the beginning of each
academic term of the school.
`(iii) CONTENTS OF NOTICE- A notice under clause (i) shall
contain--
`(I) the trade name, common name (if applicable), and
Environmental Protection Agency registration number of each pesticide
to be applied;
`(II) a description of each location at the school at which a
pesticide is to be applied;
`(III) a description of the date and time of application,
except that, in the case of an outdoor pesticide application, a notice
shall include at least 3 dates, in chronological order, on which the
outdoor pesticide application may take place if the preceding date is
canceled;
`(IV) information that the State agency shall provide to the
local educational agency, including a description of potentially acute
and chronic effects that may result from exposure to each pesticide to
be applied based on--
`(aa) a description of potentially acute and chronic effects that
may result from exposure to each pesticide to be applied, as stated on the label
of the pesticide approved by the Administrator;
`(bb) information derived from the material safety data sheet for
the end-use dilution of the pesticide to be applied (if available) or the
material safety data sheets; and
`(cc) final, official information related to the pesticide
prepared by the Administrator and provided to the local educational agency by
the State agency;
`(V) a description of the purpose of the application of the
pesticide;
`(VI) the address, telephone number, and website address of
the Office of Pesticide Programs of the Environmental Protection
Agency; and
`(VII) the statement described in subparagraph (A)(iv) (other
than the ninth sentence of that statement).
`(C) NOTIFICATION AND POSTING EXEMPTION- A notice or posting of a
sign under subparagraph (A), (B), or (G) shall not be required for the
application at a school of--
`(i) an antimicrobial pesticide;
`(ii) a bait, gel, or paste that is placed--
`(I) out of reach of children or in an area that is not
accessible to children; or
`(II) in a tamper-resistant or child-resistant container or
station; and
`(iii) any pesticide that, as of the date of enactment of the
School Environment Protection Act of 2002, is exempt from the
requirements of this Act under section 25(b) (including regulations
promulgated at section 152 of title 40, Code of Federal Regulations (or
any successor regulation)).
`(D) NEW STAFF MEMBERS AND STUDENTS- After the beginning of each
school year, a local educational agency or school within a local
educational agency shall provide each notice required under subparagraph
(A) to--
`(i) each new staff member who is employed during the school
year; and
`(ii) the parent or guardian of each new student enrolled during
the school year.
`(E) METHOD OF NOTIFICATION- A local educational agency or school
may provide a notice under this subsection, using information described in
paragraph (4), in the form of--
`(i) a written notice sent home with the students and provided
to staff members;
`(iv) a written notice mailed at least 1 week before the
application; or
`(v) a notice delivered electronically (such as through
electronic mail or facsimile).
`(F) REISSUANCE- If the date of the application of the pesticide
needs to be extended beyond the period required for notice under this
paragraph, the school shall issue a notice containing only the new date
and location of application.
`(i) IN GENERAL- Except as provided in paragraph
(5)--
`(I) a school shall post a sign not later than the last
business day during which school is in session preceding the date of
application of a pesticide at the school; and
`(II) the application for which a sign is posted under
subclause (I) shall not commence before the time that is 24 hours
after the end of the business day on which the sign is
posted.
`(ii) LOCATION- A sign shall be posted under clause
(i)--
`(I) at a central location noticeable to individuals entering
the building; and
`(II) at the proposed site of application.
`(iii) ADMINISTRATION- A sign required to be posted under clause
(i) shall--
`(I) remain posted for at least 24 hours after the end of the
application;
`(aa) at least 8 1/2 inches by 11 inches for signs posted inside
the school; and
`(bb) at least 4 inches by 5 inches for signs posted outside the
school; and
`(aa) information about the pest problem for which the
application is necessary;
`(bb) the name of each pesticide to be used;
`(cc) the date of application;
`(dd) the name and telephone number of the designated contact
person; and
`(ee) the statement contained in subparagraph
(A)(iv).
`(iv) OUTDOOR PESTICIDE APPLICATIONS-
`(I) IN GENERAL- In the case of an outdoor pesticide
application at a school, each sign shall include at least 3 dates, in
chronological order, on which the outdoor pesticide application may
take place if the preceding date is canceled.
`(II) DURATION OF POSTING- A sign described in subclause (I)
shall be posted after an outdoor pesticide application in accordance
with clauses (ii) and (iii).
`(A) IN GENERAL- A school may apply a pesticide at the school
without complying with this part in an emergency, subject to subparagraph
(B).
`(B) SUBSEQUENT NOTIFICATION OF PARENTS, GUARDIANS, AND STAFF
MEMBERS- Not later than the earlier of the time that is 24 hours after a
school applies a pesticide under this paragraph or on the morning of the
next business day, the school shall provide to each parent or guardian of
a student listed on the registry, a staff member listed on the registry,
and the designated contact person, notice of the application of the
pesticide in an emergency that includes--
`(i) the information required for a notice under paragraph
(4)(G); and
`(ii) a description of the problem and the factors that required
the application of the pesticide to avoid a threat to the health or
safety of a student or staff member.
`(C) METHOD OF NOTIFICATION- The school may provide the notice
required by paragraph (B) by any method of notification described in
paragraph (4)(E).
`(D) POSTING OF SIGNS- Immediately after the application of a
pesticide under this paragraph, a school shall post a sign warning of the
pesticide application in accordance with clauses (ii) through (iv) of
paragraph (4)(B).
`(c) RELATIONSHIP TO STATE AND LOCAL REQUIREMENTS- Nothing in this
section (including regulations promulgated under this section)--
`(1) precludes a State or political subdivision of a State from
imposing on local educational agencies and schools any requirement under
State or local law (including regulations) that is more stringent than the
requirements imposed under this section; or
`(2) establishes any exception under, or affects in any other way,
section 24(b).
`(d) EXCLUSION OF CERTAIN PEST MANAGEMENT ACTIVITIES- Nothing in this
section (including regulations promulgated under this section) applies to a
pest management activity that is conducted--
`(1) on or adjacent to a school; and
`(2) by, or at the direction of, a State or local agency other than
a local educational agency.
`(e) AUTHORIZATION OF APPROPRIATIONS- There are authorized to be
appropriated such sums as are necessary to carry out this section.'.
(c) CONFORMING AMENDMENT- The table of contents in section 1(b) of the
Federal Insecticide, Fungicide, and Rodenticide Act (7 U.S.C. prec. 121) is
amended by striking the items relating to sections 30 through 32 and inserting
the following:
`Sec. 30. Minimum requirements for training of maintenance
applicators and service technicians.
`Sec. 31. Environmental Protection Agency minor use
program.
`Sec. 32. Department of Agriculture minor use program.
`(a) In general.
`(b)(1) Minor use pesticide data.
`(2) Minor Use Pesticide Data Revolving Fund.
`Sec. 33. Pest management in schools.
`(a) Definitions.
`(1) Bait.
`(2) Contact person.
`(3) Emergency.
`(4) Local educational agency.
`(5) School.
`(6) Staff member.
`(7) State agency.
`(8) Universal notification.
`(b) School pest management plans.
`(1) State plans.
`(2) Implementation by local educational agencies.
`(3) Contact person.
`(4) Notification.
`(5) Emergencies.
`(c) Relationship to State and local requirements.
`(d) Exclusion of certain pest management
activities.
`(e) Authorization of appropriations.
`Sec. 35. Authorization of appropriations.'.
(d) EFFECTIVE DATE- This section and the amendments made by this
section take effect on October 1, 2002.
SEC. 1043. PROHIBITION ON PACKERS OWNING, FEEDING, OR CONTROLLING
LIVESTOCK.
(a) IN GENERAL- Section 202 of the Packers and Stockyards Act, 1921 (7
U.S.C. 192), is amended--
(1) by redesignating subsections (f) and (g) as subsections (g) and
(h), respectively;
(2) by inserting after subsection (e) the following:
`(f) Own, feed, or control livestock intended for slaughter (for more
than 14 days prior to slaughter and acting through the packer or a person that
directly or indirectly controls, or is controlled by or under common control
with, the packer), except that this subsection shall not apply to--
`(1) a cooperative or entity owned by a cooperative, if a majority
of the ownership interest in the cooperative is held by active cooperative
members that--
`(A) own, feed, or control livestock; and
`(B) provide the livestock to the cooperative for slaughter;
or
`(2) a packer that is owned or controlled by producers of a type of
livestock, if during a calendar year the packer slaughters less than 2
percent of the head of that type of livestock slaughtered in the United
States; or'; and
(3) in subsection (h) (as so redesignated), by striking `or (e)' and
inserting `(e), or (f)'.
(1) IN GENERAL- Subject to paragraph (2), the amendments made by
subsection (a) take effect on the date of enactment of this Act.
(2) TRANSITION RULES- In the case of a packer that on the date of
enactment of this Act owns, feeds, or controls livestock intended for
slaughter in violation of section 202(f) of the Packers and Stockyards Act,
1921 (as amended by subsection (a)), the amendments made by subsection (a)
apply to the packer--
(A) in the case of a packer of swine, beginning on the date that
is 18 months after the date of enactment of this Act; and
(B) in the case of a packer of any other type of livestock,
beginning as soon as practicable, but not later than 180 days, after the
date of enactment of this Act, as determined by the Secretary of
Agriculture.
SEC. 1044. PACKERS AND STOCKYARDS.
(a) DEFINITIONS- Section 2(a) of the Packers and Stockyards Act, 1921
(7 U.S.C. 182(a)), is amended by adding at the end the following:
`(12) LIVESTOCK CONTRACTOR- The term `livestock contractor' means
any person engaged in the business of obtaining livestock under a livestock
production contract for the purpose of slaughtering the livestock or selling
the livestock for slaughter, if--
`(A) the livestock is obtained by the person in commerce;
or
`(B) the livestock (including livestock products from the
livestock) obtained by the person is sold or shipped in
commerce.
`(13) LIVESTOCK PRODUCTION CONTRACT- The term `livestock production
contract' means any growout contract or other arrangement under which a
livestock production contract grower raises and cares for the livestock in
accordance with the instructions of another person.
`(14) LIVESTOCK PRODUCTION CONTRACT GROWER- The term `livestock
production contract grower' means any person engaged in the business of
raising and caring for livestock in accordance with the instructions of
another person.'.
(1) IN GENERAL- The Packers and Stockyards Act, 1921, is amended by
striking `packer' each place it appears in sections 202, 203, 204, and 205
(7 U.S.C. 192, 193, 194, 195) (other than section 202(c)) and inserting
`packer or livestock contractor'.
(2) CONFORMING AMENDMENTS-
(A) Section 202(c) of the Packers and Stockyards Act, 1921 (7
U.S.C. 192(c)), is amended by inserting `, livestock contractor,' after
`other packer' each place it appears.
(B) Section 308(a) of the Packers and Stockyards Act, 1921 (7
U.S.C. 209(a)), is amended by inserting `or livestock production contract'
after `poultry growing arrangement'.
(C) Sections 401 and 403 of the Packers and Stockyards Act, 1921
(7 U.S.C. 221, 223), are amended by inserting `any livestock contractor,
and' after `packer,' each place it appears.
(c) RIGHT TO DISCUSS TERMS OF CONTRACT- The Packers and Stockyards
Act, 1921 (7 U.S.C. 181 et seq.), is amended by adding at the end the
following:
`SEC. 417. RIGHT TO DISCUSS TERMS OF CONTRACT.
`(a) IN GENERAL- Notwithstanding a provision in any contract for the
sale or production of livestock or poultry that provides that information
contained in the contract is confidential, a party to the contract shall not
be prohibited from discussing any terms or details of any contract
with--
`(4) an executive or manager;
`(7) a Federal or State agency with responsibility for--
`(A) enforcing a statute designed to protect a party to the
contract; or
`(B) administering this Act.
`(b) EFFECT ON STATE LAWS- Subsection (a) does not affect State laws
that address confidentiality provisions in contracts for the sale or
production of livestock or poultry.'.
SEC. 1045. UNLAWFUL STOCKYARD PRACTICES INVOLVING NONAMBULATORY
LIVESTOCK.
(a) IN GENERAL- Title III of the Packers and Stockyards Act, 1921, is
amended by inserting after section 317 (7 U.S.C. 217a) the following:
`SEC. 318. UNLAWFUL STOCKYARD PRACTICES INVOLVING NONAMBULATORY
LIVESTOCK.
`(a) DEFINITIONS- In this section:
`(1) HUMANELY EUTHANIZED- The term `humanely euthanized' means to
kill an animal by mechanical, chemical, or other means that immediately
render the animal unconscious, with this state remaining until the animal's
death.
`(2) NONAMBULATORY LIVESTOCK- The term `nonambulatory livestock'
means any livestock that is unable to stand and walk unassisted.
`(1) IN GENERAL- It shall be unlawful under section 312 for any
stockyard owner, market agency, or dealer to buy, sell, give, receive,
transfer, market, hold, or drag any nonambulatory livestock unless the
nonambulatory livestock has been humanely euthanized.
`(A) NON-GIPSA FARMS- Paragraph (1) shall not apply to any farm
the animal care practices of which are not subject to the authority of the
Grain Inspection, Packers, and Stockyards Administration.
`(B) VETERINARY CARE- Paragraph (1) shall not apply in a case in
which nonambulatory livestock receive veterinary care intended to render
the livestock ambulatory.'.
(1) IN GENERAL- The amendment made by subsection (a) takes effect 1
year after the date of the enactment of this Act.
(2) REGULATIONS- Not later than 1 year after the date of enactment
of this Act, the Secretary of Agriculture shall promulgate regulations
consistent with the amendment, relating to the handling, treatment, and
disposition of nonambulatory livestock at livestock marketing facilities or
by dealers.
SEC. 1046. ARBITRATION CLAUSES.
Title IV of the Packers and Stockyards Act, 1921, is amended by
inserting after section 413 (7 U.S.C. 228b-4) the following:
`SEC. 413A. ARBITRATION CLAUSES.
`Notwithstanding any other provision of law, in the case of a contract
for the sale or production of livestock or poultry under this Act that is
entered into or renewed after the date of enactment of this section and that
includes a provision that requires arbitration of a dispute arising from the
contract, a person that seeks to resolve a dispute under the contract may,
notwithstanding the terms of the contract, elect--
`(1) to arbitrate the dispute in accordance with the contract;
or
`(2) to resolve the dispute in accordance with any other lawful
method of dispute resolution, including mediation and civil
action.'.
SEC. 1047. COTTON CLASSIFICATION SERVICES.
The first sentence of section 3a of the Act of March 3, 1927 (commonly
known as the `Cotton Statistics and Estimates Act') (7 U.S.C. 473), is amended
by striking `2002' and inserting `2006'.
SEC. 1048. PROTECTION FOR PURCHASERS OF FARM PRODUCTS.
Section 1324 of the Food Security Act of 1985 (7 U.S.C. 1631) is
amended--
(1) in subsection (c)(4)--
(A) in subparagraph (B), by striking `signed,' and inserting
`signed, authorized, or otherwise authenticated by the
debtor,';
(B) by striking subparagraph (C);
(C) in subparagraph (D)--
(i) in clause (iii), by adding `and' after the semicolon at the
end; and
(ii) in clause (iv), by striking `applicable;' and all that
follows and inserting `applicable, and the name of each county or parish
in which the farm products are growing or located;';
and
(D) by redesignating subparagraphs (D) through (I) as
subparagraphs (C) through (H), respectively;
(A) in paragraph (1)(A)--
(I) in subclause (III), by adding `and' after the semicolon at
the end; and
(II) in subclause (IV), by striking `crop year,' and all that
follows and inserting `crop year, and the name of each county or
parish in which the farm products are growing or located;';
and
(iii) in clause (v), by inserting `contains' before `any
payment'; and
(i) in subparagraph (A), by striking `subparagraph' and
inserting `subsection'; and
(ii) in subparagraph (B), by striking `; and' and inserting a
period; and
(3) subsection (g)(2)(A)--
(i) in subclause (III), by adding `and' after the semicolon at
the end; and
(ii) in subclause (IV), by striking `crop year,' and all that
follows and inserting `crop year, and the name of each county or parish
in which the farm products are growing or located;';
and
(B) in clause (v), by inserting `contains' before `any
payment'.
SEC. 1049. IMPROVED STANDARDS FOR THE CARE AND TREATMENT OF CERTAIN
ANIMALS.
(a) SOCIALIZATION PLAN; BREEDING RESTRICTIONS- Section 13(a)(2) of the
Animal Welfare Act (7 U.S.C. 2143(a)(2)) is amended--
(1) in subparagraph (A), by striking `and' at the end;
(2) in subparagraph (B), by striking the period at the end and
inserting a semicolon; and
(3) by adding at the end the following:
`(C) for the socialization of dogs intended for sale as pets with
other dogs and people, through compliance with a performance standard
developed by the Secretary based on the recommendations of veterinarians
and animal welfare and behavior experts that--
`(i) identifies actions that dealers and inspectors shall take
to ensure adequate socialization; and
`(ii) identifies a set of behavioral measures that inspectors
shall use to evaluate adequate socialization; and
`(D) for addressing the initiation and frequency of breeding of
female dogs so that a female dog is not--
`(i) bred before the female dog has reached at least 1 year of
age; and
`(ii) whelped more frequently than 3 times in any 24-month
period.'.
(b) SUSPENSION OR REVOCATION OF LICENSE, CIVIL PENALTIES, JUDICIAL
REVIEW, AND CRIMINAL PENALTIES- Section 19 of the Animal Welfare Act (7 U.S.C.
2149) is amended--
(1) by striking `SEC. 19. (a) If the Secretary' and inserting the
following:
`SEC. 19. SUSPENSION OR REVOCATION OF LICENSE, CIVIL PENALTIES, JUDICIAL
REVIEW, AND CRIMINAL PENALTIES.
`(a) SUSPENSION OR REVOCATION OF LICENSE-
`(1) IN GENERAL- If the Secretary';
(A) in paragraph (1) (as designated by paragraph (1)), by striking
`if such violation' and all that follows and inserting `if the Secretary
determines that 1 or more violations have occurred.'; and
(B) by adding at the end the following:
`(2) LICENSE REVOCATION- If the Secretary finds that any person
licensed as a dealer, exhibitor, or operator of an auction sale subject to
section 12, has committed a serious violation (as determined by the
Secretary) of any rule, regulation, or standard governing the humane
handling, transportation, veterinary care, housing, breeding, socialization,
feeding, watering, or other humane treatment of dogs under section 12 or 13
on 3 or more separate inspections within any 8-year period, the Secretary
shall--
`(A) suspend the license of the person for 21 days;
and
`(B) after providing notice and a hearing not more than 30 days
after the third violation is noted on an inspection report, revoke the
license of the person unless the Secretary makes a written finding that
revocation is unwarranted because of extraordinary extenuating
circumstances.';
(3) in subsection (b), by striking `(b) Any dealer' and inserting
`(b) CIVIL PENALTIES- Any dealer';
(4) in subsection (c), by striking `(c) Any dealer' and inserting
`(c) JUDICIAL REVIEW- Any dealer'; and
(5) in subsection (d), by striking `(d) Any dealer' and inserting
`(d) CRIMINAL PENALTIES- Any dealer'.
(c) REGULATIONS- Not later than 1 year after the date of enactment of
this Act, the Secretary of Agriculture shall promulgate such regulations as
are necessary to carry out the amendments made by this section, including
development of the standards required by the amendments made by subsection
(a).
SEC. 1050. EXPANSION OF STATE MARKETING PROGRAMS.
(a) STATE MARKETING PROGRAMS- Section 204(b) of the Agricultural
Marketing Act of 1946 (7 U.S.C. 1623(b)) is amended--
(1) by striking `(b) The' and all that follows through `:
Provided, That no' and inserting the following:
`(b) STATE MARKETING PROGRAMS-
`(1) IN GENERAL- Of the funds of the Commodity Credit Corporation,
the Secretary of Agriculture shall make available $7,000,000 for fiscal year
2003, $8,000,000 for fiscal year 2004, and $10,000,000 for each of fiscal
years 2005 and 2006 for allotment to State departments of agriculture, State
bureaus and departments of markets, State agricultural experiment stations,
and other appropriate State agencies for cooperative projects in marketing
service and in marketing research to effectuate the purposes of--
`(A) title II of this Act; and
`(B) the Farmer's Market Promotion Program established under
section 6 of the Farmer-to-Consumer Direct Marketing Act of
1976.
`(2) SMALL FARMS AND LIMITED RESOURCE FARMERS- Of the funds made
available under paragraph (1), a priority shall be given for initiatives
designed to support direct and other marketing efforts of small farms and
limited resource farmers.
(2) by striking `The funds which' and inserting the
following:
`(4) ADDITIONAL FUNDS- The funds that';
(3) by striking `The allotments' and inserting the
following:
`(5) RECIPIENT AGENCIES- The allotments';
(4) by striking `Such allotments' and inserting the
following:
`(6) COOPERATIVE AGREEMENTS- The allotments'; and
(5) by striking `Should duplication' and inserting the
following:
`(7) DUPLICATION- If duplication'.
(b) FARMERS' MARKET PROMOTION PROGRAM-
(1) SURVEY- Section 4 of the Farmer-to-Consumer Direct Marketing Act
of 1976 (7 U.S.C. 3003) is amended--
(A) in the first sentence, by striking `a continuing' and
inserting `an annual'; and
(B) by striking the second sentence.
(2) DIRECT MARKETING ASSISTANCE- Section 5 of the Farmer-to-Consumer
Direct Marketing Act of 1976 (7 U.S.C. 3004) is amended--
(i) in the first sentence, by striking `Extension Service of the
United States Department of Agriculture' and inserting `Secretary';
and
(ii) in the second sentence--
(I) by striking `Extension Service' and inserting `Secretary';
and
(II) by striking `and on the basis of which of these two
agencies, or combination thereof, can best perform these activities'
and inserting `, as determined by the Secretary';
(B) by redesignating subsection (b) as subsection (c);
and
(C) by inserting after subsection (a) the following:
`(b) DEVELOPMENT OF FARMERS' MARKETS- The Secretary shall--
`(1) work with the Governor of a State, and a State agency
designated by the Governor, to develop programs to train managers of
farmers' markets;
`(2) develop opportunities to share information among managers of
farmers' markets;
`(3) establish a program to train cooperative extension service
employees in the development of direct marketing techniques; and
`(4) work with producers to develop farmers' markets.'.
(3) FARMERS' MARKET PROMOTION PROGRAM- The Farmer-to-Consumer Direct
Marketing Act of 1976 (7 U.S.C. 3001 et seq.) is amended by inserting after
section 5 the following:
`SEC. 6. FARMERS' MARKET PROMOTION PROGRAM.
`(a) ESTABLISHMENT- The Secretary shall carry out a program, to be
known as the `Farmers' Market Promotion Program' (referred to in this section
as the `Program'), to make grants to eligible entities for projects to
establish, expand, and promote farmers' markets.
`(b) PROGRAM PURPOSES- The purposes of the Program are--
`(1) to increase domestic consumption of agricultural commodities by
improving and expanding, or assisting in the improvement and expansion of,
domestic farmers' markets, roadside stands, community-supported agriculture
programs, and other direct producer-to-consumer infrastructure;
and
`(2) to develop, or aid in the development of, new farmers' markets,
roadside stands, community-supported agriculture programs, and other direct
producer-to-consumer infrastructure.
`(c) ELIGIBLE ENTITIES- An entity shall be eligible to receive a grant
under the Program if the entity is--
`(1) an agricultural cooperative;
`(3) a nonprofit corporation;
`(4) a public benefit corporation;
`(5) an economic development corporation;
`(6) a regional farmers' market authority; or
`(7) such other entity as the Secretary may designate.
`(d) CRITERIA AND GUIDELINES- The Secretary shall establish criteria
and guidelines for the submission, evaluation, and funding of proposed
projects under the Program.
`(1) IN GENERAL- Under the Program, the amount of a grant to an
eligible entity for any 1 project shall be not more than $500,000 for any 1
fiscal year.
`(2) AVAILABILITY- The amount of a grant to an eligible entity for a
project shall be available until expended or until the date on which the
project terminates.
`(1) IN GENERAL- The share of the costs of a project covered by a
grant awarded under the Program shall not exceed 60 percent.
`(A) FORM- The non-Federal share of the cost of a project carried
out under the Program may be paid in the form of cash or the provision of
services, materials, or other in-kind contributions.
`(B) LIMITATION- The value of any real or personal property owned
by an eligible entity as of the date on which the eligible entity submits
a proposal for a project under the Program shall not be credited toward
the grantee share required under this paragraph.
`(1) IN GENERAL- There is authorized to be appropriated to carry out
this section $10,000,000 for each of fiscal years 2002 through
2006.
`(2) LIMITATION- Except for funds made available pursuant to section
204(b) of the Agricultural Marketing Act of 1946 (7 U.S.C. 1623(b)), no
amounts may be made available to carry out this section unless specifically
provided by an appropriation Act.'.
SEC. 1051. DEFINITION OF ANIMAL UNDER THE ANIMAL WELFARE ACT.
Section 2(g) of the Animal Welfare Act (7 U.S.C. 2132(g)) is amended
by striking `excludes horses not used for research purposes and' and inserting
the following: `excludes birds, rats of the genus Rattus, and mice of the
genus Mus bred for use in research, horses not used for research purposes,
and'.
SEC. 1052. PENALTIES AND FOREIGN COMMERCE PROVISIONS OF THE ANIMAL
WELFARE ACT.
(a) PENALTIES AND FOREIGN COMMERCE PROVISIONS OF THE ANIMAL WELFARE
ACT- Section 26 of the Animal Welfare Act (7 U.S.C. 2156) is amended--
(A) by inserting `PENALTIES- ' after `(e)';
(B) by striking `$5,000' and inserting `$15,000';
and
(C) by striking `1 year' and inserting `2 years';
and
(2) in subsection (g)(2)(B), by inserting at the end before the
semicolon the following: `or from any State into any foreign
country'.
(b) EFFECTIVE DATE- The amendments made by this section take effect 30
days after the date of the enactment of this Act.
SEC. 1053. PROHIBITION ON INTERSTATE MOVEMENT OF ANIMALS FOR ANIMAL
FIGHTING.
(a) PROHIBITION ON INTERSTATE MOVEMENT OF ANIMALS FOR ANIMAL FIGHTING-
Section 26(d) of the Animal Welfare Act (7 U.S.C. 2156(d)) is amended to read
as follows:
`(d) ACTIVITIES NOT SUBJECT TO PROHIBITION- This section does not
apply to the selling, buying, transporting, or delivery of an animal in
interstate or foreign commerce for any purpose, so long as the purpose does
not include participation of the animal in an animal fighting
venture.'.
(b) EFFECTIVE DATE- The amendment made by this section take effect 30
days after the date of the enactment of this Act.
SEC. 1054. OUTREACH AND ASSISTANCE FOR SOCIALLY DISADVANTAGED FARMERS
AND RANCHERS.
(a) IN GENERAL- Section 2501 of the Food, Agriculture, Conservation,
and Trade Act of 1990 (7 U.S.C. 2279) is amended by striking subsection (a)
and inserting the following:
`(a) OUTREACH AND ASSISTANCE-
`(1) DEFINITIONS- In this subsection:
`(A) DEPARTMENT- The term `Department' means the Department of
Agriculture.
`(B) ELIGIBLE ENTITY- The term `eligible entity'
means--
`(i) any community-based organization, network, or coalition of
community-based organizations that--
`(I) has demonstrated experience in providing agricultural
education or other agriculturally related services to socially
disadvantaged farmers and ranchers;
`(II) has provided to the Secretary documentary evidence of
work with socially disadvantaged farmers and ranchers during the
2-year period preceding the submission of an application for
assistance under this subsection; and
`(III) has not engaged in activities prohibited under section
501(c)(3) of the Internal Revenue Code of 1986;
`(ii)(I) an 1890 institution (as defined in section 2 of the
Agricultural Research, Extension, and Education Reform Act of 1998 (7
U.S.C. 7601)), including West Virginia State College;
`(II) a 1994 institution (as defined in section 2 of that
Act);
`(III) an Indian tribal community college;
`(IV) an Alaska Native cooperative college;
`(V) a Hispanic-serving institution (as defined in section 1404
of the National Agricultural Research, Extension, and Teaching Policy
Act of 1977 (7 U.S.C. 3103)); and
`(VI) any other institution of higher education (as defined in
section 101 of the Higher Education Act of 1965 (20 U.S.C. 1001)) that
has demonstrated experience in providing agriculture education or other
agriculturally related services to socially disadvantaged farmers and
ranchers in a region; and
`(iii) an Indian tribe (as defined in section 4 of the Indian
Self-Determination and Education Assistance Act (25 U.S.C. 450b)) or a
national tribal organization that has demonstrated experience in providing
agriculture education or other agriculturally related services to socially
disadvantaged farmers and ranchers in a region.
`(C) SECRETARY- The term `Secretary' means the Secretary of
Agriculture.
`(2) PROGRAM- The Secretary shall carry out an outreach and
technical assistance program to encourage and assist socially disadvantaged
farmers and ranchers--
`(A) in owning and operating farms and ranches; and
`(B) in participating equitably in the full range of agricultural
programs offered by the Department.
`(3) REQUIREMENTS- The outreach and technical assistance program
under paragraph (2) shall--
`(A) enhance coordination of the outreach, technical assistance,
and education efforts authorized under various agriculture programs;
and
`(B) include information on, and assistance with--
`(i) commodity, conservation, credit, rural, and business
development programs;
`(ii) application and bidding procedures;
`(iii) farm and risk management;
`(v) other activities essential to participation in agricultural
and other programs of the Department.
`(4) GRANTS AND CONTRACTS-
`(A) IN GENERAL- The Secretary may make grants to, and enter into
contracts and other agreements with, an eligible entity to provide
information and technical assistance under this subsection.
`(B) RELATIONSHIP TO OTHER LAW- The authority to carry out this
section shall be in addition to any other authority provided in this or
any other Act.
`(A) AUTHORIZATION OF APPROPRIATIONS- There is authorized to be
appropriated to carry out this subsection $25,000,000 for each of fiscal
years 2002 through 2006.
`(B) INTERAGENCY FUNDING- In addition to funds authorized to be
appropriated under subparagraph (A), any agency of the Department may
participate in any grant, contract, or agreement entered into under this
section by contributing funds, if the agency determined that the
objectives of the grant, contract, or agreement will further the
authorized programs of the contributing agency.'.
(b) DEFINITION OF SOCIALLY DISADVANTAGED GROUP- Section 2501(e)(1) of
the Food, Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C.
2279(e)(1)) is amended by striking `racial or ethnic' and inserting `gender,
racial, or ethnic'.
SEC. 1055. WILD FISH AND WILD SHELLFISH.
Section 2104 of the Organic Foods Production Act of 1990 (7 U.S.C.
6503) is amended--
(1) by redesignating subsections (c) and (d) as subsections (d) and
(e), respectively; and
(2) by inserting after subsection (b) the following:
`(c) WILD FISH AND WILD SHELLFISH-
`(1) IN GENERAL- Notwithstanding section 2107(a)(1), the Secretary
may allow, through regulations promulgated after public notice and
opportunity for comment, wild fish or wild shellfish harvested from salt
water to be certified or labeled as organic.
`(2) CONSULTATION AND ACCOMMODATION- In carrying out paragraph (1),
the Secretary shall--
`(i) the Secretary of Commerce;
`(ii) the National Organic Standards Board established under
section 2119;
`(iii) producers, processors, and sellers; and
`(iv) other interested members of the public;
and
`(B) to the maximum extent practicable, accommodate the unique
characteristics of the industries in the United States that harvest and
process wild fish and shellfish.'.
SEC. 1056. ASSISTANT SECRETARY OF AGRICULTURE FOR CIVIL
RIGHTS.
(a) IN GENERAL- Section 218 of the Department of Agriculture
Reorganization Act of 1994 (7 U.S.C. 6918) is amended by adding at the end the
following:
`(f) ASSISTANT SECRETARY OF AGRICULTURE FOR CIVIL RIGHTS-
`(1) DEFINITION OF SOCIALLY DISADVANTAGED FARMER OR RANCHER- In this
subsection, the term `socially disadvantaged farmer or rancher' has the
meaning given the term in section 355(e) of the Consolidated Farm and Rural
Development Act (7 U.S.C. 2003(e)).
`(2) ESTABLISHMENT OF POSITION- The Secretary shall establish within
the Department the position of Assistant Secretary of Agriculture for Civil
Rights.
`(3) APPOINTMENT- The Assistant Secretary of Agriculture for Civil
Rights shall be appointed by the President, by and with the advice and
consent of the Senate.
`(4) DUTIES- The Assistant Secretary of Agriculture for Civil Rights
shall--
`(A) enforce and coordinate compliance with all civil rights laws
and related laws--
`(i) by the agencies of the Department; and
`(ii) under all programs of the Department (including all
programs supported with Department funds);
`(i) the Department has measurable goals for treating customers
and employees fairly and on a nondiscriminatory basis;
and
`(ii) the goals and the progress made in meeting the goals are
included in--
`(I) strategic plans of the Department;
and
`(II) annual reviews of the plans;
`(C) compile and publicly disclose data used in assessing civil
rights compliance in achieving on a nondiscriminatory basis participation
of socially disadvantaged farmers and ranchers in programs of the
Department;
`(D)(i) hold Department agency heads and senior executives
accountable for civil rights compliance and performance; and
`(ii) assess performance of Department agency heads and senior
executives on the basis of success made in those areas;
`(E) ensure, to the maximum extent practicable--
`(i) a sufficient level of participation by socially
disadvantaged farmers and ranchers in deliberations of county and area
committees established under section 8(b) of the Soil Conservation and
Domestic Allotment Act (16 U.S.C. 590h(b)); and
`(ii) that participation data and election results involving the
committees are made available to the public; and
`(F) perform such other functions as may be prescribed by the
Secretary.'.
(b) COMPENSATION- Section 5315 of title 5, United States Code, is
amended by striking `Assistant Secretaries of Agriculture (2)' and inserting
`Assistant Secretaries of Agriculture (3)'.
(c) CONFORMING AMENDMENTS- Section 296(b) of the Department of
Agriculture Reorganization Act of 1994 (7 U.S.C. 7014(b)) is amended--
(1) in paragraph (3), by striking `or' at the end;
(2) in paragraph (4), by striking the period at the end and
inserting `; or'; and
(3) by adding at the end the following:
`(5) the authority of the Secretary to establish within the
Department the position of Assistant Secretary of Agriculture for Civil
Rights under section 218(f).'.
SEC. 1057. TRANSPARENCY AND ACCOUNTABILITY FOR SOCIALLY DISADVANTAGED
FARMERS AND RANCHERS; PUBLIC DISCLOSURE REQUIREMENTS FOR COUNTY COMMITTEE
ELECTIONS.
(a) TRANSPARENCY AND ACCOUNTABILITY FOR SOCIALLY DISADVANTAGED FARMERS
AND RANCHERS- The Food, Agriculture, Conservation, and Trade Act of 1990 is
amended by inserting after section 2501 (7 U.S.C. 2279) the following:
`SEC. 2501A. TRANSPARENCY AND ACCOUNTABILITY FOR SOCIALLY DISADVANTAGED
FARMERS AND RANCHERS.
`(a) PURPOSE- The purpose of this section is to ensure compilation and
public disclosure of data to assess and hold the Department of Agriculture
accountable for the nondiscriminatory participation of socially disadvantaged
farmers and ranchers in programs of the Department.
`(b) DEFINITION OF SOCIALLY DISADVANTAGED FARMER OR RANCHER- In this
section, the term `socially disadvantaged farmer or rancher' has the meaning
given the term in section 355(e) of the Consolidated Farm and Rural
Development Act (7 U.S.C. 2003(e)).
`(c) COMPILATION OF PROGRAM PARTICIPATION DATA-
`(1) ANNUAL REQUIREMENT- For each county and State in the United
States, the Secretary shall compute annually the participation rate of
socially disadvantaged farmers and ranchers as a percentage of the total
participation of all farmers and ranchers for each program of the Department
of Agriculture established for farmers or ranchers.
`(2) DETERMINATION OF PARTICIPATION- In determining the rates under
paragraph (1), the Secretary shall consider, for each county and State, the
number of socially disadvantaged farmers and ranchers of each race,
ethnicity, and gender in proportion to the total number of farmers and
ranchers participating in each program.'.
(b) PUBLIC DISCLOSURE REQUIREMENTS FOR COUNTY COMMITTEE ELECTIONS-
Section 8(b)(5) of the Soil Conservation and Domestic Allotment Act (16 U.S.C.
590h(b)(5)) is amended by striking subparagraph (B) and inserting the
following:
`(B) ESTABLISHMENT AND ELECTIONS FOR COUNTY, AREA, OR LOCAL
COMMITTEES-
`(I) IN GENERAL- In each county or area in which activities
are carried out under this section, the Secretary shall establish a
county or area committee.
`(II) LOCAL ADMINISTRATIVE AREAS- The Secretary may designate
local administrative areas within a county or a larger area under the
jurisdiction of a committee established under subclause
(I).
`(ii) COMPOSITION OF COUNTY, AREA, OR LOCAL COMMITTEES- A
committee established under clause (i) shall consist of not fewer than 3
nor more than 5 members that--
`(I) are fairly representative of the agricultural producers
within the area covered by the county, area, or local committee;
and
`(II) are elected by the agricultural producers that
participate or cooperate in programs administered within the area
under the jurisdiction of the county, area, or local
committee.
`(I) IN GENERAL- Subject to subclauses (II) through (V), the
Secretary shall establish procedures for nominations and elections to
county, area, or local committees.
`(II) NONDISCRIMINATION STATEMENT- Each solicitation of
nominations for, and notice of elections of, a county, area, or local
committee shall include the nondiscrimination statement used by the
Secretary.
`(aa) ELIGIBILITY- To be eligible for nomination and election to
the applicable county, area, or local committee, as determined by the Secretary,
an agricultural producer shall be located within the area under the jurisdiction
of a county, area, or local committee, and participate or cooperate in programs
administered within that area.
`(bb) OUTREACH- In addition to such nominating procedures as the
Secretary may prescribe, 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)).
`(IV) OPENING OF BALLOTS-
`(aa) PUBLIC NOTICE- At least 10 days before the date on which
ballots are to be opened and counted, a county, area, or local committee shall
announce the date, time, and place at which election ballots will be opened and
counted.
`(bb) OPENING OF BALLOTS- Election ballots shall not be opened
until the date and time announced under item (aa).
`(cc) OBSERVATION- Any person may observe the opening and
counting of the election ballots.
`(V) REPORT OF ELECTION- Not later than 20 days after the date
on which an election is held, a county, area, or local committee shall
file an election report with the Secretary and the State office of the
Farm Service Agency that includes--
`(aa) the number of eligible voters in the area covered by the
county, area, or local committee;
`(bb) the number of ballots cast in the election by eligible
voters (including the percentage of eligible voters that cast
ballots);
`(cc) the number of ballots disqualified in the
election;
`(dd) the percentage that the number of ballots disqualified is
of the number of ballots received;
`(ee) the number of nominees for each seat up for
election;
`(ff) the race, ethnicity, and gender of each nominee, as
provided through the voluntary self-identification of each nominee;
and
`(gg) the final election results (including the number of ballots
received by each nominee).
`(VI) NATIONAL REPORT- Not later than 90 days after the date
on which the first election of a county, area, or local committee that
occurs after the date of enactment of the Agriculture, Conservation,
and Rural Enhancement Act of 2002 is held, the Secretary shall
complete a report that consolidates all the election data reported to
the Secretary under subclause (V).
`(aa) ANALYSIS- If determined necessary by the Secretary after
analyzing the data contained in the report under subclause (VI), the Secretary
shall promulgate and publish in the Federal Register proposed uniform guidelines
for conducting elections for members and alternate members of county, area, and
local committees not later than 1 year after the date of completion of the
report.
`(bb) INCLUSION- The procedures promulgated by the Secretary
under item (aa) shall ensure fair representation of socially disadvantaged
groups described in subclause (III)(bb) in an area covered by the county, area,
or local committee, in cases in which those groups are underrepresented on the
county, area, or local committee for that area.
`(cc) METHODS OF INCLUSION- Notwithstanding clause (ii), the
Secretary may ensure inclusion of socially disadvantaged farmers and ranchers
through provisions allowing for appointment of additional voting members to a
county, area, or local committee or through other methods.
`(iv) TERM OF OFFICE- The term of office for a member of a
county, area, or local committee shall not exceed 3
years.
`(v) PUBLIC AVAILABILITY AND REPORT TO CONGRESS-
`(I) PUBLIC DISCLOSURE- The Secretary shall maintain and make
readily available to the public, via website and otherwise in
electronic and paper form, all data required to be collected and
computed under section 2501A(c) of the Food, Agriculture,
Conservation, and Trade Act of 1990 and clause (iii)(V) collected
annually since the most recent Census of
Agriculture.
`(II) REPORT TO CONGRESS- After each Census of Agriculture,
the Secretary shall report to Congress the rate of loss or gain in
participation by each socially disadvantaged group, by race,
ethnicity, and gender, since the previous
Census.'.
SEC. 1058. ANIMAL ENTERPRISE TERRORISM.
(a) IN GENERAL- Section 43 of title 18, United States Code, is
amended--
(1) by striking subsections (a) and (b) and inserting the
following:
`(1) IN GENERAL- It shall be unlawful for a person to--
`(A) travel in interstate or foreign commerce, or use or cause to
be used the mail or any facility in interstate or foreign commerce, for
the purpose of causing physical disruption to the functioning of an animal
enterprise; and
`(B) intentionally damage or cause the loss of any property
(including an animal or record) used by the animal enterprise, or conspire
to do so.
`(1) ECONOMIC DAMAGE- A person that, in the course of a violation of
subsection (a), causes economic damage to an animal enterprise in an amount
less than $10,000 shall be imprisoned not more than 6 months, fined under
this title, or both.
`(2) MAJOR ECONOMIC DAMAGE- A person that, in the course of a
violation of subsection (a), causes economic damage to an animal enterprise
in an amount equal to or greater than $10,000 shall be imprisoned not more
than 3 years, fined under this title, or both.
`(3) SERIOUS BODILY INJURY- A person that, in the course of a
violation of subsection (a), causes serious bodily injury to another
individual shall be imprisoned not more than 20 years, fined under this
title, or both.
`(4) DEATH- A person that, in the course of a violation of
subsection (a), causes the death of an individual shall be imprisoned for
life or for any term of years, fined under this title, or both.';
and
(A) in the matter preceding paragraph (1), by striking
`restitution--' and inserting `restitution for--';
(i) by striking `for'; and
(ii) by striking `and' at the end;
(C) in paragraph (2), by striking the period at the end and
inserting `; and'; and
(D) by adding at the end the following:
`(3) any other economic damage resulting from the
offense.'.
SEC. 1059. PSEUDORABIES ERADICATION PROGRAM.
Section 2506(d) of the Food, Agriculture, Conservation, and Trade Act
of 1990 (21 U.S.C. 114i(d)) is amended by striking `2002' and inserting
`2006'.
SEC. 1060. TRANSPORTATION OF POULTRY AND OTHER ANIMALS.
Section 5402(d)(2) of title 39, United States Code (as amended by
section 651(2) of Public Law 107-67 (115 Stat. 557)), is amended by striking
subparagraph (C).
SEC. 1061. EMERGENCY GRANTS TO ASSIST LOW-INCOME MIGRANT AND SEASONAL
FARMWORKERS.
Section 2281 of the Food, Agriculture, Conservation, and Trade Act of
1990 (42 U.S.C. 5177a) is amended--
(1) in subsection (a), by striking `, not to exceed $20,000,000
annually,'; and
(2) by striking subsection (c) and inserting the
following:
`(c) AUTHORIZATION OF APPROPRIATIONS- There is authorized to be
appropriated to carry out this section $40,000,000 for each of fiscal years
2002 through 2006.'.
SEC. 1062. TREE ASSISTANCE PROGRAM.
(a) IN GENERAL- Section 194 of the Federal Agriculture Improvement and
Reform Act of 1996 (Public Law 104-127; 110 Stat. 945) is amended to read as
follows:
`SEC. 194. TREE ASSISTANCE PROGRAM.
`(a) DEFINITIONS- In this section:
`(1) ELIGIBLE ORCHARDIST- The term `eligible orchardist' means a
person that produces annual crops from trees for commercial
purposes,
`(2) NATURAL DISASTER- The term `natural disaster' means plant
disease, insect infestation, drought, fire, freeze, flood, earthquake, and
other natural occurrences, as determined by the Secretary.
`(3) TREE- The term `tree' includes trees, bushes, and
vines.
`(4) SECRETARY- The term `Secretary' means the Secretary of
Agriculture.
`(1) LOSS- Subject to paragraph (2), the Secretary shall provide
assistance in accordance with subsection (c) to eligible orchardists that,
as determined by the Secretary--
`(A) planted trees for commercial purposes; and
`(B) lost those trees as a result of a natural
disaster.
`(2) LIMITATION- An eligible orchardist shall qualify for assistance
under subsection (c) only if the tree mortality rate of the orchardist, as a
result of the natural disaster, exceeds 15 percent (adjusted for normal
mortality), as determined by the Secretary.
`(1) IN GENERAL- Assistance provided by the Secretary to eligible
orchardists for losses described in subsection (b) shall consist
of--
`(A) reimbursement of 75 percent of the cost of replanting trees
lost due to a natural disaster, as determined by the Secretary, in excess
of 15 percent mortality (adjusted for normal mortality); or
`(B) at the discretion of the Secretary, sufficient tree seedlings
to reestablish the stand.
`(2) LIMITATION ON ASSISTANCE-
`(A) LIMITATION- The total amount of payments that a person may
receive under this section shall not exceed--
`(ii) an equivalent value in tree seedlings.
`(B) REGULATIONS- The Secretary shall promulgate regulations
that--
`(i) define the term `person' for the purposes of this section
(which definition shall conform, to the extent practicable, to the
regulations defining the term `person' promulgated under section 1001 of
the Food Security Act of 1985 (7 U.S.C. 1308); and
`(ii) prescribe such rules as the Secretary determines are
necessary to ensure a fair and reasonable application of the limitation
established under this section.
`(d) AUTHORIZATION OF APPROPRIATIONS- Notwithstanding section 161,
there is authorized to be appropriated such sums as are necessary to carry out
this section for each of fiscal years 2002 through 2006.'.
(b) APPLICATION DATE- The amendment made by subsection (a) shall apply
to tree losses that are incurred as a result of a natural disaster after
January 1, 2000.
SEC. 1063. PRECLEARANCE QUARANTINE INSPECTIONS.
The Food, Agriculture, Conservation, and Trade Act of 1990 is amended
by inserting after section 2505 (Public Law 101-624; 104 Stat. 4068) the
following:
`SEC. 2505A. PRECLEARANCE QUARANTINE INSPECTIONS.
`(a) IN GENERAL- Subject to subsection (b), the Secretary of
Agriculture, acting through the Administrator of the Animal and Plant Health
Inspection Service, shall conduct, at all direct departure and interline
airports in the State of Hawaii, preclearance quarantine inspections of
persons, baggage, cargo, and any other articles destined for movement from the
State of Hawaii to--
`(1) the continental United States;
`(4) the Virgin Islands of the United States.
`(b) LIMITATION- Subsection (a) shall not be implemented unless
appropriations for necessary expenses of the Animal and Plant Health
Inspection Service for inspection, quarantine, and regulatory activities are
increased by an amount not less than $3,000,000 in a fiscal year 2002
appropriation Act other than the Agriculture, Rural Development, Food and Drug
Administration, and Related Agencies Appropriations Act, 2002 (Public Law
107-76).'.
SEC. 1064. EMERGENCY LOANS FOR SEED PRODUCERS.
Section 253(b)(5)(B) of the Agricultural Risk Protection Act of 2000
(Public Law 106-224; 114 Stat. 423) is amended by striking `18 months' and
inserting `54 months'.
SEC. 1065. NATIONAL ORGANIC CERTIFICATION COST-SHARE PROGRAM.
(a) IN GENERAL- Of funds of the Commodity Credit Corporation, the
Secretary of Agriculture (acting through the Agricultural Marketing Service)
shall use $3,500,000 for fiscal year 2002, $3,500,000 for each of fiscal years
2003 and 2004, and $3,000,000 for fiscal year 2005 to establish a national
organic certification cost-share program to assist producers and handlers of
agricultural products in obtaining certification under the national organic
production program established under the Organic Foods Production Act of 1990
(7 U.S.C. 6501 et seq.).
(1) IN GENERAL- Subject to paragraph (2), the Secretary shall pay
under this section not more than 75 percent of the costs incurred by a
producer or handler in obtaining certification under the national organic
production program, as certified to and approved by the
Secretary.
(2) MAXIMUM AMOUNT- The maximum amount of a payment made to a
producer or handler under this section shall be $500.
SEC. 1066. FOOD SAFETY COMMISSION.
(1) IN GENERAL- There is established a commission to be known as the
`Food Safety Commission' (referred to in this section as the
`Commission').
(A) COMPOSITION- The Commission shall be composed of 15 members,
of whom--
(i) 4 shall be appointed by the Majority Leader of the
Senate;
(ii) 3 shall be appointed by the Minority Leader of the
Senate;
(iii) 4 shall be appointed by the Speaker of the House of
Representatives;
(iv) 3 shall be appointed by the Minority Leader of the House of
Representatives; and
(I) be appointed jointly by the Speaker of the House of
Representatives and the Majority Leader of the Senate;
and
(II) serve as chairperson.
(B) ELIGIBILITY- Members of the Commission--
(i) shall be knowledgeable or have expertise or training in
matters under the jurisdiction of the Commission;
(ii) shall represent, at a minimum--
(II) food processors, producers, and
retailers;
(III) public health professionals;
(V) former or current food safety
regulators;
(VI) members of academia; or
(VII) any other interested individuals;
and
(iii) shall not be Federal employees.
(C) DATE OF APPOINTMENTS- The appointment of a member of the
Commission shall be made not later than 60 days after the date of
enactment of this Act.
(D) CONSULTATION- The Speaker of the House of Representatives, the
Minority Leader of the House of Representatives, the Majority Leader of
the Senate, and the Minority Leader of the Senate shall consult among
themselves prior to appointing the members of the Commission under
subparagraph (A) to achieve, to the maximum extent
practicable--
(i) consensus on the appointments; and
(ii) fair and equitable representation of various points of view
with respect to matters reviewed by the Commission.
(E) VACANCIES- A vacancy on the Commission--
(i) shall not affect the powers of the Commission;
and
(I) not later than 60 days after the date on which the vacancy
occurs; and
(II) in the same manner as the original appointment was
made.
(A) INITIAL MEETING- The initial meeting of the Commission shall
be conducted not later than 30 days after the later of--
(i) the date of appointment of the final member of the
Commission; or
(ii) the date on which funds authorized to be appropriated under
subsection (f)(1) are made available.
(B) OTHER MEETINGS- The Commission shall meet at the call of the
Chairperson.
(4) QUORUM; STANDING RULES-
(A) QUORUM- A majority of the members of the Commission shall
constitute a quorum to conduct business.
(B) STANDING RULES- At the first meeting of the Commission, the
Commission shall adopt standing rules of the Commission to guide the
conduct of business and decisionmaking of the Commission.
(i) IN GENERAL- To the maximum extent practicable, the
Commission shall carry out the duties of the Commission by reaching
consensus.
(I) IN GENERAL- If the Commission is unable to achieve
consensus with respect to a particular decision, the Commission shall
vote on the decision.
(II) AUTHORITY- Each member of the Commission shall have 1
vote, which vote shall be accorded the same weight as a vote of each
other voting member.
(A) IN GENERAL- The Commission shall make specific recommendations
that build on and implement, to the maximum extent practicable, the
recommendations contained in the report of the National Academy of
Sciences entitled `Ensuring Safe Food from Production to Consumption' and
that shall serve as the basis for draft legislative language
to--
(i) improve the food safety system;
(ii) improve public health;
(iii) create a harmonized, central framework for managing
Federal food safety programs (including outbreak management,
standard-setting, inspection, monitoring, surveillance, risk assessment,
enforcement, research, and education);
(iv) enhance the effectiveness of Federal food safety resources;
and
(v) eliminate, to the maximum extent practicable, gaps,
conflicts, duplication, and failures in the food safety
system.
(B) COMPONENTS- Recommendations made by the Commission under
subparagraph (A) shall, at a minimum, address--
(i) all food available commercially in the United States,
including meat, poultry, eggs, seafood, and produce;
(ii) the application of all resources based on risk, including
resources for inspection, research, enforcement, and
education;
(iii) shortfalls, redundancy, and inconsistency in laws
(including regulations); and
(iv) the use of science-based methods, performance standards,
and preventative control systems to ensure the safety of the food supply
of the United States.
(2) REPORT- Not later than 1 year after the date on which the
Commission first meets, the Commission shall submit to the President and
Congress a comprehensive report that includes--
(A) the findings, conclusions, and recommendations of the
Commission;
(B) a summary of any reports submitted to the Commission under
subsection (e) by--
(i) the Advisory Commission on Intergovernmental Relations;
and
(ii) the National Academy of Sciences;
(C) a summary of any other material used by the Commission in the
preparation of the report under this paragraph; and
(D) if requested by 1 or more members of the Commission, a
statement of the minority views of the Commission.
(c) POWERS OF THE COMMISSION-
(1) HEARINGS- The Commission or, at the direction of the Commission,
any subcommittee or member of the Commission, may, for the purpose of
carrying out this section hold such hearings, meet and act at such times and
places, take such testimony, receive such evidence, and administer such
oaths, as the Commission or such subcommittee or member considers
advisable.
(2) WITNESS ALLOWANCES AND FEES-
(A) IN GENERAL- Section 1821 of title 28, United States Code,
shall apply to a witness requested to appear at a hearing of the
Commission.
(B) EXPENSES- The per diem and mileage allowances for a witness
shall be paid from funds available to pay the expenses of the
Commission.
(3) INFORMATION FROM FEDERAL AGENCIES-
(A) IN GENERAL- The Commission may secure directly, from any
Federal Department or agency, such information as the Commission considers
necessary to carry out the duties of the Commission under subsection
(b).
(B) PROVISION OF INFORMATION-
(i) IN GENERAL- Subject to subparagraph (C), on the request of
the Commission, the head of a department or agency described in
subparagraph (A) shall furnish information requested by the Commission
to the Commission.
(ii) ADMINISTRATION- The furnishing of information by a
department or agency to the Commission shall not be considered a waiver
of any exemption available to the department or agency under section 552
of title 5, United States Code.
(C) INFORMATION TO BE KEPT CONFIDENTIAL-
(i) IN GENERAL- For purposes of section 1905 of title 18, United
States Code--
(I) the Commission shall be considered an agency of the
Federal Government; and
(II) any individual employed by an individual, entity, or
organization that is a party to a contract with the Commission under
subsection (e) shall be considered an employee of the
Commission.
(ii) PROHIBITION ON DISCLOSURE- Information obtained by the
Commission, other than information that is available to the public,
shall not be disclosed to any person in any manner
except--
(I) to an employee of the Commission described in clause (i),
for the purpose of receiving, reviewing, or processing the
information;
(II) in compliance with a court order; or
(III) in any case in which the information is publicly
released by the Commission in an aggregate or summary form that does
not directly or indirectly disclose--
(aa) the identity of any person or business entity;
or
(bb) any information the release of which is prohibited under
section 1905 of title 18, United States Code.
(d) COMMISSION PERSONNEL MATTERS-
(1) COMPENSATION OF MEMBERS- A member of the Commission shall be
compensated at a rate equal to the daily equivalent of the annual rate of
basic pay prescribed for level IV of the Executive Schedule under section
5315 of title 5, United States Code, for each day (including travel time)
during which the member is engaged in the performance of the duties of the
Commission.
(2) TRAVEL EXPENSES- A member of the Commission shall be allowed
travel expenses, including per diem in lieu of subsistence, at rates
authorized for an employee of an agency under subchapter I of chapter 57 of
title 5, United States Code, while away from the home or regular place of
business of the member in the performance of the duties of the
Commission.
(A) IN GENERAL- The Chairperson of the Commission may, without
regard to the civil service laws (including regulations), appoint and
terminate an executive director and such other additional personnel as are
necessary to enable the Commission to perform the duties of the
Commission.
(B) CONFIRMATION OF EXECUTIVE DIRECTOR- The employment of an
executive director shall be subject to confirmation by the
Commission.
(i) IN GENERAL- Except as provided in clause (ii), the
Chairperson of the Commission may fix the compensation of the executive
director and other personnel without regard to the provisions of chapter
51 and subchapter III of chapter 53 of title 5, United States Code,
relating to classification of positions and General Schedule pay
rates.
(ii) MAXIMUM RATE OF PAY- The rate of pay for the executive
director and other personnel shall not exceed the rate payable for level
V of the Executive Schedule under section 5316 of title 5, United States
Code.
(4) DETAIL OF FEDERAL GOVERNMENT EMPLOYEES-
(A) IN GENERAL- Notwithstanding any other provision of law
(including an Act of appropriation), an employee of the Federal Government
may be detailed to the Commission, without reimbursement, for such period
of time as the Commission may require.
(B) CIVIL SERVICE STATUS- The detail of the employee shall be
without interruption or loss of civil service status or
privilege.
(5) PROCUREMENT OF TEMPORARY AND INTERMITTENT SERVICES- The
Chairperson of the Commission may procure temporary and intermittent
services in accordance with section 3109(b) of title 5, United States Code,
at rates for individuals that do not exceed the daily equivalent of the
annual rate of basic pay prescribed for level V of the Executive Schedule
under section 5316 of that title.
(e) CONTRACTS FOR RESEARCH-
(1) ADVISORY COMMISSION ON INTERGOVERNMENTAL RELATIONS-
(A) IN GENERAL- In carrying out the duties of the Commission under
subsection (b), the Commission may enter into contracts with the Advisory
Commission on Intergovernmental Relations under which the Advisory
Commission on Intergovernmental Relations shall conduct a thorough review
of, and shall catalogue, all applicable Federal, State, local, and tribal
laws, regulations, and ordinances that pertain to food safety in the
United States.
(B) REPORT- A contract under subparagraph (A) shall require that,
not later than 240 days after the date on which the Commission first
meets, the Advisory Commission on Intergovernmental Relations shall submit
to the Commission a report that describes the results of the services
rendered by the Advisory Commission on Intergovernmental Relations under
the contract.
(2) NATIONAL ACADEMY OF SCIENCES-
(A) IN GENERAL- In carrying out the duties of the Commission under
subsection (b), the Commission may enter in contracts with the National
Academy of Sciences to obtain research or other assistance.
(B) REPORT- A contract under subparagraph (A) shall require that,
not later than 240 days after the date on which the Commission first
meets, the National Academy of Sciences shall submit to the Commission a
report that describes the results of the services to be rendered by the
National Academy of Sciences under the contract.
(3) OTHER ORGANIZATIONS- Nothing in this subsection limits or
otherwise affects the ability of the Commission to enter into a contract
with an entity or organization that is not described in paragraph (1) or (2)
to obtain assistance in conducting research necessary to carry out the
duties of the Commission under subsection (b).
(f) AUTHORIZATION OF APPROPRIATIONS-
(1) IN GENERAL- There is authorized to be appropriated to carry out
this section $3,000,000.
(2) LIMITATION- No payment may be made under subsection (d) or (e)
except to the extent provided for in advance in an appropriations
Act.
(g) TERMINATION- The Commission shall terminate on the date that is 60
days after the date on which the Commission submits the recommendations and
report under subsection (b).
SEC. 1067. HUMANE METHODS OF ANIMAL SLAUGHTER.
It is the sense of Congress that--
(1) the Secretary of Agriculture should--
(A) resume tracking the number of violations of Public Law 85-765
(7 U.S.C. 1901 et seq.) and report the results and relevant trends
annually to Congress; and
(B) fully enforce Public Law 85-765 by ensuring that humane
methods in the slaughter of livestock--
(i) prevent needless suffering;
(ii) result in safer and better working conditions for persons
engaged in the slaughtering of livestock;
(iii) bring about improvement of products and economies in
slaughtering operations; and
(iv) produce other benefits for producers, processors, and
consumers that tend to expedite an orderly flow of livestock and
livestock products in interstate and foreign commerce;
and
(2) it should be the policy of the United States that the
slaughtering of livestock and the handling of livestock in connection with
slaughter shall be carried out only by humane methods.
SEC. 1068. PENALTIES FOR VIOLATIONS OF PLANT PROTECTION ACT.
Section 424 of the Plant Protection Act (7 U.S.C. 7734) is
amended--
(1) by striking subsection (a) and inserting the
following:
`(1) IN GENERAL- A person that knowingly violates this title shall
be subject to criminal penalties in accordance with this
subsection.
`(A) IN GENERAL- Subject to subparagraphs (B) and (C), a person
that commits a violation of this title described in this subparagraph
shall be guilty of a felony and, on conviction, shall be imprisoned not
more than 5 years, fined not more than $25,000, or both, in the case of a
violation of this title involving--
`(ii) more than 50 pounds of plants;
`(iii) more than 5 pounds of plant products;
`(iv) more than 50 pounds of noxious weeds;
`(v) possession with intent to distribute or sell items
described in clause (i), (ii), (iii), or (iv), knowing the items have
been involved in a violation of this title; or
`(vi) forging, counterfeiting, or without authority from the
Secretary, using, altering, defacing, or destroying a certificate,
permit, or other document provided under this title.
`(B) MULTIPLE VIOLATIONS- On the second and any subsequent
conviction of a person of a violation of this title described in
subparagraph (A), the person shall be imprisoned not more than 10 years or
fined not more than $50,000, or both.
`(C) INTENT TO HARM AGRICULTURE OF UNITED STATES- In the case of a
knowing movement in violation of this title by a person of a plant, plant
product, biological control organism, plant pest, noxious weed, article,
or means of conveyance into, out of, or within the United States, with the
intent to harm the agriculture of the United States by introduction into
the United States or dissemination of a plant pest or noxious weed within
the United States, the person shall be imprisoned not less than 10 nor
more than 20 years, fined not more than $500,000, or both.
`(A) IN GENERAL- Subject to subparagraph (B), a person shall be
imprisoned not more than 1 year, fined not more than $1,000, or both, in
the case of a violation of this title involving--
`(i) 50 pounds or less of plants;
`(ii) 5 pounds or less of plant products; or
`(iii) 50 pounds or less of noxious weeds.
`(B) MULTIPLE VIOLATIONS- On the second and any subsequent
conviction of a person that commits a violation of this title described in
this subparagraph shall be guilty of a misdemeanor and, on conviction, of
a violation of this title described in subparagraph (A), the person shall
be imprisoned not more than 3 years, fined not more than $10,000, or
both.';
(2) by redesignating subsections (b), (c), and (d) as subsections
(c), (e), (f), respectively;
(3) by inserting after subsection (a) the following:
`(b) CRIMINAL FORFEITURE-
`(1) IN GENERAL- In imposing a sentence on a person convicted of a
violation of this title, in addition to any other penalty imposed under this
section and irrespective of any provision of State law, a court shall order
that the person forfeit to the United States--
`(A) any of the property of the person used to commit or to
facilitate the commission of the violation (other than a misdemeanor);
and
`(B) any property, real or personal, constituting, derived from,
or traceable to any proceeds that the person obtained directly or
indirectly as a result of the violation.
`(2) PROCEDURES- All property subject to forfeiture under this
subsection, any seizure and disposition of the property, and any proceeding
relating to the forfeiture shall be subject to the procedures of section 413
of the Comprehensive Drug Abuse Prevention and Control Act of 1970 (21
U.S.C. 853), other than subsections (d) and (q).
`(3) PROCEEDS- The proceeds from the sale of any forfeited property,
and any funds forfeited, under this subsection shall be used--
`(A) first, to reimburse the Department of Justice, the United
States Postal Service, and the Department of the Treasury for any costs
incurred by the Departments and the Service to initiate and complete the
forfeiture proceeding;
`(B) second, to reimburse the Office of Inspector General of the
Department of Agriculture for any costs incurred by the Office in the law
enforcement effort resulting in the forfeiture;
`(C) third, to reimburse any Federal or State law enforcement
agency for any costs incurred in the law enforcement effort resulting in
the forfeiture; and
`(D) fourth, by the Secretary to carry out the functions of the
Secretary under this title.'; and
(4) by inserting after subsection (c) (as redesignated by paragraph
(2)) the following:
`(1) IN GENERAL- There shall be subject to forfeiture to the United
States any property, real or personal--
`(A) used to commit or used knowingly to facilitate the commission
of a violation (other than a misdemeanor) described in subsection (a);
or
`(B) constituting, derived from, or traceable to proceeds of a
violation described in subsection (a).
`(A) IN GENERAL- Subject to subparagraph (B), the procedures of
chapter 46 of title 18, United States Code, relating to civil forfeitures
shall apply to a seizure or forfeiture under this subsection, to the
extent that the procedures are applicable and consistent with this
subsection.
`(B) PERFORMANCE OF DUTIES- Duties imposed on the Secretary of the
Treasury under chapter 46 of title 18, United States Code, shall be
performed with respect to seizures and forfeitures under this subsection
by officers, employees, agents, and other persons designated by the
Secretary of Agriculture.'.
SEC. 1069. CONNECTICUT RIVER ATLANTIC SALMON COMMISSION.
(a) EFFECTIVE PERIOD- Section 3(2) of Public Law 98-138 (Public Law
98-138; 97 Stat. 870) is amended by striking `twenty' and inserting
`40'.
(b) AUTHORIZATION OF APPROPRIATIONS- Public Law 98-138 (97 Stat. 866)
is amended by adding at the end the following:
`SEC. 6. AUTHORIZATION OF APPROPRIATIONS.
`There is authorized to be appropriated to the Secretary of the
Interior to carry out the activities of the Connecticut River Atlantic Salmon
Commission $9,000,000 for each of fiscal years 2002 through 2010.'.
SEC. 1070. BEAR PROTECTION.
(a) SHORT TITLE- This section may be cited as the `Bear Protection Act
of 2002'.
(b) FINDINGS- Congress finds that--
(1) all 8 extant species of bear--Asian black bear, brown bear,
polar bear, American black bear, spectacled bear, giant panda, sun bear, and
sloth bear--are listed on Appendix I or II of the Convention on
International Trade in Endangered Species of Wild Fauna and Flora (27 UST
1087; TIAS 8249);
(2)(A) Article XIV of CITES provides that Parties to CITES may adopt
stricter domestic measures regarding the conditions for trade, taking,
possession, or transport of species listed on Appendix I or II;
and
(B) the Parties to CITES adopted a resolution in 1997 (Conf. 10.8)
urging the Parties to take immediate action to demonstrably reduce the
illegal trade in bear parts;
(3)(A) thousands of bears in Asia are cruelly confined in small
cages to be milked for their bile; and
(B) the wild Asian bear population has declined significantly in
recent years as a result of habitat loss and poaching due to a strong demand
for bear viscera used in traditional medicines and cosmetics;
(4) Federal and State undercover operations have revealed that
American bears have been poached for their viscera;
(5) while most American black bear populations are generally stable
or increasing, commercial trade could stimulate poaching and threaten
certain populations if the demand for bear viscera increases; and
(6) prohibitions against the importation into the United States and
exportation from the United States, as well as prohibitions against the
interstate trade, of bear viscera and products containing, or labeled or
advertised as containing, bear viscera will assist in ensuring that the
United States does not contribute to the decline of any bear population as a
result of the commercial trade in bear viscera.
(c) PURPOSE- The purpose of this section is to ensure the long-term
viability of the world's 8 bear species by--
(1) prohibiting interstate and international trade in bear viscera
and products containing, or labeled or advertised as containing, bear
viscera;
(2) encouraging bilateral and multilateral efforts to eliminate such
trade; and
(3) ensuring that adequate Federal legislation exists with respect
to domestic trade in bear viscera and products containing, or labeled or
advertised as containing, bear viscera.
(d) DEFINITIONS- In this section:
(1) BEAR VISCERA- The term `bear viscera' means the body fluids or
internal organs, including the gallbladder and its contents but not
including the blood or brains, of a species of bear.
(2) CITES- The term `CITES' means the Convention on International
Trade in Endangered Species of Wild Fauna and Flora (27 UST 1087; TIAS
8249).
(3) IMPORT- The term `import' means to land on, bring into, or
introduce into any place subject to the jurisdiction of the United States,
regardless of whether the landing, bringing, or introduction constitutes an
importation within the meaning of the customs laws of the United
States.
(4) PERSON- The term `person' means--
(A) an individual, corporation, partnership, trust, association,
or other private entity;
(B) an officer, employee, agent, department, or instrumentality
of--
(i) the Federal Government;
(ii) any State or political subdivision of a State;
or
(iii) any foreign government; and
(C) any other entity subject to the jurisdiction of the United
States.
(5) SECRETARY- The term `Secretary' means the Secretary of the
Interior.
(6) STATE- The term `State' means a State, the District of Columbia,
the Commonwealth of Puerto Rico, the Virgin Islands, Guam, the Commonwealth
of the Northern Mariana Islands, American Samoa, and any other territory,
commonwealth, or possession of the United States.
(7) TRANSPORT- The term `transport' means to move, convey, carry, or
ship by any means, or to deliver or receive for the purpose of movement,
conveyance, carriage, or shipment.
(1) IN GENERAL- Except as provided in paragraph (2), a person shall
not--
(A) import into, or export from, the United States bear viscera or
any product, item, or substance containing, or labeled or advertised as
containing, bear viscera; or
(B) sell or barter, offer to sell or barter, purchase, possess,
transport, deliver, or receive, in interstate or foreign commerce, bear
viscera or any product, item, or substance containing, or labeled or
advertised as containing, bear viscera.
(2) EXCEPTION FOR WILDLIFE LAW ENFORCEMENT PURPOSES- A person
described in subsection (d)(4)(B) may import into, or export from, the
United States, or transport between States, bear viscera or any product,
item, or substance containing, or labeled or advertised as containing, bear
viscera if the importation, exportation, or transportation--
(A) is solely for the purpose of enforcing laws relating to the
protection of wildlife; and
(B) is authorized by a valid permit issued under Appendix I or II
of CITES, in any case in which such a permit is required under
CITES.
(f) PENALTIES AND ENFORCEMENT-
(1) CRIMINAL PENALTIES- A person that knowingly violates subsection
(e) shall be fined under title 18, United States Code, imprisoned not more
than 1 year, or both.
(A) AMOUNT- A person that knowingly violates subsection (e) may be
assessed a civil penalty by the Secretary of not more than $25,000 for
each violation.
(B) MANNER OF ASSESSMENT AND COLLECTION- A civil penalty under
this paragraph shall be assessed, and may be collected, in the manner in
which a civil penalty under the Endangered Species Act of 1973 may be
assessed and collected under section 11(a) of that Act (16 U.S.C.
1540(a)).
(3) SEIZURE AND FORFEITURE- Any bear viscera or any product, item,
or substance imported, exported, sold, bartered, attempted to be imported,
exported, sold, or bartered, offered for sale or barter, purchased,
possessed, transported, delivered, or received in violation of this
subsection (including any regulation issued under this subsection) shall be
seized and forfeited to the United States.
(4) REGULATIONS- After consultation with the Secretary of the
Treasury and the United States Trade Representative, the Secretary shall
issue such regulations as are necessary to carry out this
subsection.
(5) ENFORCEMENT- The Secretary, the Secretary of the Treasury, and
the Secretary of the department in which the Coast Guard is operating shall
enforce this subsection in the manner in which the Secretaries carry out
enforcement activities under section 11(e) of the Endangered Species Act of
1973 (16 U.S.C. 1540(e)).
(6) USE OF PENALTY AMOUNTS- Amounts received as penalties, fines, or
forfeiture of property under this subsection shall be used in accordance
with section 6(d) of the Lacey Act Amendments of 1981 (16 U.S.C.
3375(d)).
(g) DISCUSSIONS CONCERNING BEAR CONSERVATION AND THE BEAR PARTS TRADE-
In order to seek to establish coordinated efforts with other countries to
protect bears, the Secretary shall continue discussions concerning trade in
bear viscera with--
(1) the appropriate representatives of Parties to CITES;
and
(2) the appropriate representatives of countries that are not
parties to CITES and that are determined by the Secretary and the United
States Trade Representative to be the leading importers, exporters, or
consumers of bear viscera.
(h) CERTAIN RIGHTS NOT AFFECTED- Except as provided in subsection (e),
nothing in this section affects--
(1) the regulation by any State of the bear population of the State;
or
(2) any hunting of bears that is lawful under applicable State law
(including regulations).
SEC. 1071. REENACTMENT OF FAMILY FARMER BANKRUPTCY PROVISIONS.
(a) REENACTMENT- Notwithstanding any other provision of law, chapter
12 of title 11, United States Code, is hereby reenacted.
(b) CONFORMING REPEAL- Section 302(f) of Public Law 99-554 (100 Stat.
3124) is repealed.
(c) EFFECTIVE DATE- This section shall be deemed to have taken effect
on October 1, 2001.
SEC. 1072. PROHIBITION ON PACKERS OWNING, FEEDING, OR CONTROLLING
LIVESTOCK.
(a) IN GENERAL- Section 202 of the Packers and Stockyards Act, 1921 (7
U.S.C. 192(f)) (as amended by section 1043(a)), is amended by striking
subsection (f) and inserting the following:
`(f) Own or feed livestock directly, through a subsidiary, or through
an arrangement that gives the packer operational, managerial, or supervisory
control over the livestock, or over the farming operation that produces the
livestock, to such an extent that the producer is no longer materially
participating in the management of the operation with respect to the
production of the livestock, except that this subsection shall not apply
to--
`(1) an arrangement entered into within 14 days before slaughter of
the livestock by a packer, a person acting through the packer, or a person
that directly or indirectly controls, or is controlled by or under common
control with, the packer;
`(2) a cooperative or entity owned by a cooperative, if a majority
of the ownership interest in the cooperative is held by active cooperative
members that--
`(A) own, feed, or control livestock; and
`(B) provide the livestock to the cooperative for slaughter;
or
`(3) a packer that is owned or controlled by producers of a type of
livestock, if during a calendar year the packer slaughters less than 2
percent of the head of that type of livestock slaughtered in the United
States; or'.
(1) IN GENERAL- Subject to paragraph (2), the amendments made by
subsection (a) take effect on the date of enactment of this Act.
(2) TRANSITION RULES- In the case of a packer that on the date of
enactment of this Act owns, feeds, or controls livestock intended for
slaughter in violation of section 202(f) of the Packers and Stockyards Act,
1921 (as amended by subsection (a)), the amendments made by subsection (a)
apply to the packer--
(A) in the case of a packer of swine, beginning on the date that
is 18 months after the date of enactment of this Act; and
(B) in the case of a packer of any other type of livestock,
beginning as soon as practicable, but not later than 180 days, after the
date of enactment of this Act, as determined by the Secretary of
Agriculture.
SEC. 1073. EQUITY AND FAIRNESS FOR THE PROMOTION OF IMPORTED HASS
AVOCADOS.
Section 1205 of the Hass Avocado Promotion, Research, and Information
Act (contained in H.R. 5426 of the One Hundred Sixth Congress, as introduced
on October 6, 2000 and as enacted by Public Law 106-387) is amended--
(1) in subsection (b)(2) after subparagraph (B) insert--
`(C) FUTURE ALLOCATION- After 5 years, the United States
Department of Agriculture has discretion to revisit the issue of seat
allocation on the board.'.
(2) in subsection (h)(1)(C)(iii) by striking everything in the first
sentence following `shall' and inserting in lieu thereof `be paid not less
than 30 days after the avocado clears customs, unless deemed not feasible as
determined by the Commissioner of Customs in consultation with the Secretary
of Agriculture.'.
SEC. 1074. SENSE OF THE SENATE REGARDING SOCIAL SECURITY SURPLUS
FUNDS.
(1) Since both political parties have pledged not to misuse social
security surplus funds by spending them for other purposes.
(2) Since under the Administration's fiscal year 2003 budget, the
Federal Government is projected to spend the social security surplus for
other purposes in each of the next 10 years.
(3) Since permanent extension of the inheritance tax repeal would
cost, according to the Administration's estimate, approximately
$104,000,000,000 over the next 10 years, all of which would further reduce
the social security surplus.
(b) SENSE OF THE SENATE- Therefore it is the sense of the Senate that
no social security surplus funds should be used to pay to make currently
scheduled tax cuts permanent or for wasteful spending.
SEC. 1075. SENSE OF THE SENATE ON PERMANENT REPEAL OF ESTATE
TAXES.
(1) The Economic Growth and Tax Relief Reconciliation Act of 2001
provided substantial relief from Federal estate and gift taxes beginning
this year and repealed the Federal estate tax for one year beginning on
January 1, 2010.
(2) The Economic Growth and Tax Relief Reconciliation Act of 2001
contains a `sunset' provision that reinstates the Federal estate tax at its
2001 level beginning on January 1, 2011.
(b) SENSE OF THE SENATE- Therefore, it is the sense of the Senate that
the repeal of the estate tax should be made permanent by eliminating the
sunset provision's applicability to the estate tax.
SEC. 1076. COMMERCIAL FISHERIES FAILURE.
(a) IN GENERAL- In addition to amounts appropriated or otherwise made
available by this Act, there are appropriated to the Department of Agriculture
$10,000,000 for fiscal year 2002, which shall be transferred to the Commodity
Credit Corporation to provide, in consultation with the Secretary of Commerce,
emergency disaster assistance for the commercial fishery failure under section
308(b)(1) of the Interjurisdictional Fisheries Act of 1986 (16 U.S.C.
4107(b)(1)) with respect to Northeast multispecies fisheries.
(b) PROGRAM REQUIREMENTS- Amounts made available under this section
shall be used to support a voluntary fishing capacity reduction program in the
Northeast multispecies fishery that--
(1) is certified by the Secretary of Commerce to be consistent with
section 312(b) of the Magnuson-Stevens Fishery Conservation and Management
Act (16 U.S.C. 1861a(b)); and
(2) permanently revokes multispecies limited access fishing permits
so as to obtain the maximum sustained reduction in fishing capacity at the
least cost and in the minimum period of time and to prevent the replacement
of fishing capacity removed by the program.
(c) APPLICATION OF INTERIM FINAL RULE- The program shall be carried
out in accordance with the Interim Final Rule under part 648 of title 50, Code
of Federal Regulations, or any corresponding regulation or rule promulgated
thereunder.
(d) SUNSET- The authority provided by subsection (a) shall terminate 1
year after the date of enactment of this Act and no amount may be made
available under this section thereafter.
SEC. 1077. REVIEW OF STATE MEAT INSPECTION PROGRAMS.
(a) FINDINGS- Congress finds that--
(1) the goal of a safe and wholesome supply of meat and meat food
products throughout the United States would be better served if a consistent
set of requirements, established by the Federal Government, were applied to
all meat and meat food products, whether produced under State inspection or
Federal inspection;
(2) under such a system, Federal and State meat inspection programs
would function together to create a seamless inspection system to ensure
food safety and inspire consumer confidence in the food supply in interstate
commerce; and
(3) such a system would ensure the viability of State meat
inspection programs, which should help to foster the viability of small
establishments.
(b) REVIEW- Not later than September 30, 2003, the Secretary of
Agriculture shall conduct a comprehensive review of each State meat and
poultry inspection program, which shall include--
(1) an analysis of the effectiveness of the State program;
and
(2) identification of changes that are necessary to enable the
possible future transformation of the State program to a State meat and
poultry inspection program that includes the mandatory antemortem and
postmortem inspection, reinspection, sanitation, and related requirements of
the Federal Meat Inspection Act (21 U.S.C. 601 et seq.) and the Poultry
Products Inspection Act (21 U.S.C. 451 et seq.) (including the regulations,
directives, notices, policy memoranda, and other regulatory requirements of
those Acts).
(c) COMMENT- In carrying out subsection (a), the Secretary shall, to
the maximum extent practicable, obtain comment from interested
parties.
(d) FUNDING- There are authorized to be appropriated such sums as are
necessary to carry out this section.
SEC. 1078. AGRICULTURAL RESEARCH AND TECHNOLOGY.
(1) IN GENERAL- The Secretary of Agriculture shall conduct
scientific studies on--
(A) the transmission of spongiform encephalopathy in deer, elk,
and moose; and
(B) chronic wasting disease (including the risks that chronic
wasting disease poses to livestock).
(2) REPORT- The Secretary shall submit to the Committee on
Agriculture of the House of Representatives and the Committee on
Agriculture, Nutrition, and Forestry of the Senate a report on the results
of the scientific studies.
(b) RESEARCH AND EXTENSION GRANT PROGRAM- The Secretary shall
establish a program to provide research and extension grants to eligible
entities (as determined by the Secretary) to develop, for livestock
production--
(1) prevention and control methodologies for infectious animal
diseases that affect trade; and
(2) laboratory tests to expedite detection of--
(A) infected livestock; and
(B) the presence of diseases within herds or flocks of
livestock.
(1) VACCINE STORAGE STUDY- The Secretary shall--
(A) conduct a study to determine the number of doses of livestock
disease vaccines that should be available to protect against livestock
diseases that could be introduced into the United States;
and
(B) compare that number with the number of doses of the livestock
disease vaccines that are available as of that date.
(2) STOCKPILING OF VACCINES- If, after conducting the study and
comparison described in paragraph (1), the Secretary determines that there
is an insufficient number of doses of a particular vaccine referred to in
that paragraph, the Secretary shall take such actions as are necessary to
obtain the required additional doses of the vaccine.
(d) VETERINARY TRAINING- The Secretary shall develop a program to
maintain in all regions of the United States a sufficient number of Federal
and State veterinarians who are well trained in recognition and diagnosis of
exotic and endemic animal diseases.
(e) AUTHORIZATION OF APPROPRIATIONS- There are authorized to be
appropriated to carry out this section such sums as are necessary for each of
fiscal years 2002 through 2006.
SEC. 1079. OFFICE OF SCIENCE TECHNOLOGY POLICY.
(a) IN GENERAL- The President may--
(1) establish within the Office of Science and Technology Policy a
noncareer, senior executive service appointment position for a Veterinary
Advisor; and
(2) appoint an individual to the position.
(b) QUALIFICATIONS; DUTIES- The individual appointed to the position
described in subsection (a) shall--
(1) hold the degree of Doctor of Veterinary Medicine from an
accredited or approved college of veterinary medicine; and
(2) provide to the science advisor of the President expertise
in--
(A) exotic and endemic animal disease detection, prevention, and
control;
(c) EXECUTIVE SCHEDULE PAY RATES- Section 5313 of title 5, United
States Code, is amended by adding at the end the following:
`Veterinary Advisor, Office of Science and Technology
Policy.'.
SEC. 1079A. OPERATION OF AGRICULTURAL AND NATURAL RESOURCE PROGRAMS ON
TRIBAL TRUST LAND.
(a) REVIEW- The Secretary of Agriculture (referred to in this section
as the `Secretary'), in consultation with the Secretary of the Interior, shall
conduct a review of the operation of agricultural and natural resource
programs available to farmers and ranchers operating on tribal and trust land,
including--
(1) natural resource management programs;
(2) incentive programs; and
(3) farm income support programs.
(b) ADMINISTRATION- The Secretary shall carry out programs described
in subsection (a) in a manner that, to the maximum extent practicable, is
consistent with the American Indian Agricultural Resource Management Act (25
U.S.C. 3701 et seq.).
(c) FACT-FINDING TEAM- The Secretary shall establish a fact-finding
team to obtain input from local officials and program recipients to assist in
carrying out this section.
(d) REPORT- Not later than 1 year after the date of enactment of this
Act, the Secretary shall submit to Congress a report that describes actions
taken to carry out this section, including a plan to implement the
actions.
SEC. 1079B. ASSISTANCE FOR GEOGRAPHICALLY DISADVANTAGED FARMERS AND
RANCHERS.
(a) DEFINITIONS- In this section:
(1) DEPARTMENT- The term `Department' means the Department of
Agriculture.
(2) ELIGIBLE ENTITY- The term `eligible entity' means--
(A) any community-based organization, network, or coalition of
community-based organizations that--
(i) has demonstrated experience in providing agricultural
education or other agriculturally related services to geographically
disadvantaged farmers and ranchers;
(ii) has provided to the Secretary documentary evidence of work
with geographically disadvantaged farmers and ranchers during the 2-year
period preceding the submission of an application for assistance under
this section; and
(iii) has not engaged in activities prohibited under section
501(c)(3) of the Internal Revenue Code of 1986;
(B)(i) a land-grant college or university that is located in an
insular area (as defined in section 1404 of the National Agricultural
Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3103)) (as
amended by section 701(a)) or in a State other than 1 of the 48 contiguous
States; and
(ii) any other institution of higher education (as defined in
section 101 of the Higher Education Act of 1965 (20 U.S.C. 1001)) that has
demonstrated experience in providing agricultural education or other
agriculture-related services to geographically disadvantaged farmers and
ranchers in a region; and
(C) an Indian tribe (as defined in section 4 of the Indian
Self-Determination and Education Assistance Act (25 U.S.C. 450b)) or
national tribal organization that has demonstrated experience in providing
agriculture education or other agriculturally related services to
geographically disadvantaged farmers and ranchers in a
region.
(3) GEOGRAPHICALLY DISADVANTAGED FARMER OR RANCHER- The term
`geographically disadvantaged farmer or rancher' means a farmer or rancher
in an insular area (as defined in section 1404 of the National Agricultural
Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3103)) (as
amended by section 701(a)) or in a State, other than one of the 48
contiguous States.
(4) SECRETARY- The term `Secretary' means the Secretary of
Agriculture.
(b) PROGRAM- The Secretary shall carry out an assistance program to
encourage and assist geographically disadvantaged farmers and
ranchers--
(1) in owning and operating farms and ranches; and
(2) in participating equitably in the full range of agricultural
programs offered by the Department.
(c) REQUIREMENTS- The assistance program under subsection (b)
shall--
(1) enhance coordination of technical assistance and education
efforts authorized under various agricultural programs; and
(2) include information on, and assistance with--
(A) commodity, conservation, credit, rural, and business
development programs;
(B) application and bidding procedures;
(C) farm and risk management;
(E) other activities essential to participation in agricultural
and other programs of the Department.
(d) GRANTS AND CONTRACTS- The Secretary may make grants to, and enter
into contracts and other agreements with, an eligible entity to provide
information and technical assistance under this section.
(e) REPORT- Not later than 1 year after funds are made available to
carry out this section, the Secretary shall submit to Congress a report that
identifies barriers to efficient and competitive transportation of inputs and
products by geographically disadvantaged farmers and ranchers.
(f) AUTHORIZATION OF APPROPRIATIONS- There is authorized to be
appropriated to carry out this section $10,000,000 for each of fiscal years
2002 through 2006.
SEC. 1079C. SENSE OF SENATE REGARDING USE OF THE NAME GINSENG.
It is the sense of the Senate that the Commissioner of Food and Drugs
should promulgate regulations to ensure that, for the purposes of section 403
of the Federal Food, Drug, and Cosmetic Act (21 U.S.C. 343), the name
`ginseng' or any name that includes the word `ginseng' shall be used in
reference only to an herb or herbal ingredient that--
(1) is a part of a plant of 1 of the species of the genus Panax;
and
(2) is produced in compliance with United States law regarding the
use of pesticides.
SEC. 1079D. ADJUSTED GROSS REVENUE INSURANCE PILOT PROGRAM.
Section 523 of the Federal Crop Insurance Act (7 U.S.C. 1523) is
amended by adding at the end the following:
`(e) ADJUSTED GROSS REVENUE INSURANCE PILOT PROGRAM-
`(1) IN GENERAL- The Corporation shall carry out, through at least
the 2004 reinsurance year, the adjusted gross revenue insurance pilot
program in effect for the 2002 reinsurance year.
`(2) ADDITIONAL COUNTIES-
`(A) IN GENERAL- In addition to counties otherwise included in the
pilot program, the Corporation shall include in the pilot program for the
2003 reinsurance year at least 8 counties in the State that produces (as
of the date of enactment of this subsection) the highest quantity of
specialty crops for which adjusted gross revenue insurance under this
title is not available.
`(B) SELECTION CRITERIA- In carrying out subparagraph (A), the
Corporation shall include in the pilot program counties that (as
determined by the Corporation) produce a significant quantity of specialty
crops.'.
SEC. 1079E. PASTEURIZATION.
For the purposes of any provision of Federal law under which a food or
food product is required to undergo a treatment of pasteurization, the term
`pasteurization' means any safe treatment that--
(1) is a treatment prescribed as pasteurization applicable to the
food or food product under any Federal law (including a regulation);
or
(2) has been demonstrated to the satisfaction of the Secretary of
Health and Human Services to achieve a level of reduction in the food or
food product of the microorganisms of public health concern
that--
(A) is at least as protective of the public health as a treatment
described in paragraph (1); and
(B) is effective for a period that is at least as long as the
shelf life of the food or food product when stored under normal, moderate,
and severe abuse conditions.
Subtitle E--Studies and Reports
SEC. 1081. REPORT ON POUCHED AND CANNED SALMON.
(a) IN GENERAL- Not later than 120 days after the date of enactment of
this Act, the Secretary of Agriculture (referred to in this section as the
`Secretary') shall submit to Congress a report on efforts to expand the
promotion, marketing, and purchasing of pouched and canned salmon harvested
and processed in the United States under food and nutrition programs
administered by the Secretary.
(b) COMPONENTS- The report under subsection (a) shall
include--
(1) an analysis of pouched and canned salmon inventories in the
United States that, as of the date on which the report is submitted, that
available for purchase;
(2) an analysis of the demand for pouched and canned salmon and
value-added products (such as salmon `nuggets') by--
(A) partners of the Department of Agriculture (including other
appropriate Federal agencies); and
(3) an analysis of impediments to additional purchases of pouched
and canned salmon, including--
(A) any marketing issues; and
(B) recommendations for methods to resolve those
impediments.
SEC. 1082. SETTLEMENT AGREEMENT REPORT.
Not later than December 31, 2002, and annually thereafter through
2006, the Comptroller General of the United States shall submit to Congress a
report that describes all programs and activities that States have carried out
using funds received under all phases of the Master Settlement Agreement of
1997.
SEC. 1083. REPORT ON GENETICALLY MODIFIED PEST-PROTECTED
PLANTS.
(a) FINDINGS- Congress finds that--
(1) in 2000, the Committee on Genetically Modified Pest-Protected
Plants of the Board on Agriculture and Natural Resources of the National
Research Council made several recommendations concerning food safety,
ecological research, and monitoring needs for transgenic crops with plant
incorporated protectants; and
(2) the Committee recommended enhancements to certain operational
aspects of the regulatory framework for agricultural biotechnology, such
as--
(A) improving coordination and enhanced consistency of review
across all regulatory agencies; and
(B) clarifying the scope of the regulatory jurisdiction of the
Animal and Plant Health Inspection Service.
(b) SENSE OF CONGRESS- It is the sense of Congress that, not later
than 90 days after the date of enactment of this Act, the Secretary of
Agriculture should--
(1) review the recommendations described in subsection (a);
and
(2) submit to the Committee on Agriculture of the House of
Representatives and the Committee on Agriculture, Nutrition, and Forestry of
the Senate a report that describes actions taken to implement those
recommendations by agencies within the Department of Agriculture, including
agencies that develop or implement programs or objectives relating to
marketing, regulation, food safety, research, education, or
economics.
(b) AUTHORIZATION OF APPROPRIATIONS- There is authorized to be
appropriated to carry out this section--
(1) $10,000,000 for fiscal year 2002; and
(2) such sums as are necessary for each subsequent fiscal
year.
SEC. 1084. STUDY OF CREATION OF LITTER BANK BY UNIVERSITY OF
ARKANSAS.
(a) IN GENERAL- The Secretary of Agriculture shall conduct a study to
evaluate the creation of a litter bank by the Department of Agriculture at the
University of Arkansas for the purpose of enhancing health and viability of
watersheds in areas with large concentrations of animal producing
units.
(b) COMPONENTS- In conducting the study, the Secretary shall evaluate
the costs, needs, and means by which litter may be collected and distributed
outside the applicable watershed to reduce potential point source and nonpoint
source phosphorous pollution.
(c) REPORT- Not later than 1 year after the date of enactment of this
Act, the Secretary shall submit to the Committee on Agriculture of the House
of Representatives and the Committee on Agriculture, Nutrition, and Forestry
of the Senate a report that describes the results of the study.
SEC. 1085. STUDY OF FEASIBILITY OF PRODUCER INDEMNIFICATION FROM
GOVERNMENT-CAUSED DISASTERS.
(a) FINDINGS- Congress finds that the implementation of Federal
disaster assistance programs fails to adequately address situations in which
disaster conditions are primarily the result of Federal action.
(b) AUTHORITY- The Secretary of Agriculture shall conduct a study of
the feasibility of expanding eligibility for crop insurance under the Federal
Crop Insurance Act (7 U.S.C. 1501 et seq.), and noninsured crop assistance
under section 196 of the Federal Agriculture Improvement and Reform Act of
1996 (7 U.S.C. 7333), to agricultural producers experiencing disaster
conditions caused primarily by Federal agency action.
(c) REPORT- Not later than 150 days after the date of enactment of
this Act, the Secretary shall submit report to the Committee on Agriculture of
the House of Representatives and the Committee on Agriculture, Nutrition, and
Forestry of the Senate a report that describes the results of the study,
including any recommendations.
SEC. 1086. REPORT ON SALE AND USE OF PESTICIDES FOR AGRICULTURAL
USES.
Not later than 120 days after the date of enactment of this Act, the
Administrator of the Environmental Protection Agency shall submit to the
Committee on Agriculture of the House of Representatives and the Committee on
Agriculture, Nutrition, and Forestry of the Senate a report on the manner in
which the Agency is applying regulations of the Agency governing the sale and
use of pesticides for agricultural use to electronic commerce
transactions.
SEC. 1087. REPORT ON RATS, MICE, AND BIRDS.
(a) IN GENERAL- Not later than 1 year after date enactment of this
Act, the Secretary of Agriculture shall submit to the Committee on Agriculture
of the House of Representatives and the Committee on Agriculture, Nutrition,
and Forestry of the Senate a report on the implications of including rats,
mice, and birds within the definition of animal under the Animal Welfare Act
(7 U.S.C. 2131 et seq.).
(b) REQUIREMENTS- The report under subsection (a) shall--
(1) be completed by the Comptroller General of the United
States;
(2) contain a description of the number and types of entities that
currently use rats, mice, and birds, and are not subjected to regulations of
the Department of Agriculture;
(3) contain estimates of the numbers of rats, mice, and birds
currently used in research facilities that are not currently regulated by
the United States Department of Agriculture;
(4) contain an estimate of the additional costs likely to be
incurred by breeders and research facilities resulting from the additional
regulatory requirements needed in order to afford the same levels of
protection to rats, mice, and birds as is provided for species currently
regulated by the Department of Agriculture, detailing the costs associated
with individual regulatory requirements;
(5) contain an estimate of the additional funding that the Animal
and Plant Health Inspection Service would require to be able to ensure that
the level of compliance with respect to other regulated animals is not
diminished by the increase in the number of facilities that would require
inspections after a rule extending the definition to include rats, mice, and
birds goes into effect; and
(6) contain recommendations for ensuring that the regulatory burden
is no greater than that already applied to rodent species under the Animal
Welfare Act (7 U.S.C. 2131 et seq.).
SEC. 1088. TASK FORCE ON NATIONAL INSTITUTES FOR PLANT AND AGRICULTURAL
SCIENCES.
(a) IN GENERAL- Not later than 90 days after the date of enactment of
this Act, the Secretary of Agriculture shall establish a task force to
evaluate the merits of establishing 1 or more National Institutes for Plant
and Agricultural Sciences.
(1) IN GENERAL- The Task Force shall consist of at least 8 members,
appointed by the Secretary, that--
(A) have a broad-based background in food, nutrition,
biotechnology, crop production methods, environmental science, or related
disciplines; and
(B) are familiar with the infrastructure used to conduct Federal
and private research, including--
(i) the National Institutes of Health;
(ii) the National Science Foundation;
(iii) the National Aeronautics and Space
Administration;
(iv) the Department of Energy laboratory
system;
(v) the Agricultural Research Service; and
(vi) the Cooperative State Research and Extension
Service.
(2) PRIVATE SECTOR- Of the members appointed under paragraph (1),
the Secretary shall appoint at least 6 members that are members of the
private sector, including institutions of higher education.
(3) PLANT AND AGRICULTURAL SCIENCES RESEARCH- Of the members
appointed under paragraph (1), the Secretary shall appoint at least 2
members that have an extensive background and preeminence in the field of
plant and agricultural sciences research.
(4) CHAIRPERSON- Of the members appointed under paragraph (1), the
Secretary shall designate a Chairperson that has significant leadership
experience in educational and research institutions and in depth knowledge
of the research enterprises of the United States.
(5) CONSULTATION- Before appointing members of the Task Force under
this subsection, the Secretary shall consult with the National Academy of
Sciences and the Office of Science and Technology Policy.
(c) DUTIES- The Task Force shall--
(1) evaluate and compare--
(A) publicly funded agricultural and plant sciences research
activities, including competitively awarded research; and
(B) privately funded agricultural and plant sciences research
activities;
(2) evaluate and compare--
(A) competitive publicly funded agricultural research activities;
and
(B) other forms of publicly funded research, such as medical
research;
including an assessment of the methods of evaluation,
administration, and funding;
(3) evaluate the need for competitive public plant and agricultural
sciences research necessary--
(A) to increase crop yields and productivity;
(B) to improve environmental quality;
(C) to enhance the value of farm output to agricultural producers
and consumers;
(D) to promote health and improve nutrition;
(E) to enhance food safety; and
(F) to increase effective agricultural production to meet the
future needs of the growing population of the world, especially in
developing countries;
(4) evaluate the merits of establishing 1 or more National
Institutes for Plant and Agricultural Sciences, that is similar to the
National Institute of Health--
(A) to coordinate competitive, innovative research and
technological development and innovation;
(B) to ensure the necessary supply of scientific personnel in
order to ensure the competitiveness of the United States in an
increasingly global trade market for agricultural products;
and
(C) to facilitate the integration of scientific advances from
medical sciences, engineering, and information technologies into plant and
agricultural sciences; and
(5) if establishment of 1 or more National Institutes for Plant and
Agricultural Sciences is recommended, provide further recommendations to the
Secretary, including recommendations on--
(A) the structure for establishing the Institutes;
(B) the location of the Institutes in 1 or more multistate regions
with preeminence in plant, agricultural, and related biological sciences
(including in existing Federal plant and animal research facilities and
land grant institutions), in order--
(i) to use all relevant fields of knowledge;
and
(ii) to promote collaborative and interdisciplinary research;
and
(C) the amount of funding necessary to establish the
Institutes.
(d) REPORT- Not later than July 1, 2003, the Task Force shall submit
to the Committee on Agriculture of the House of Representatives, the Committee
on Agriculture, Nutrition, and Forestry of the Senate, and the Secretary a
report that describes the results of the evaluation conducted under this
section, including recommendations described in subsection (c)(5).
Subtitle F--Organic Products Promotion
SEC. 1091. SHORT TITLE.
This subtitle may be cited as the `Organic Products Promotion,
Research, and Information Act of 2002'.
SEC. 1092. DEFINITIONS.
(1) AGRICULTURAL COMMODITY- The term `agricultural commodity'
means--
(A) agricultural, horticultural, viticultural, and dairy
products;
(B) livestock and the products of livestock;
(C) the products of poultry and bee raising;
(D) the products of forestry or commercial
fisheries;
(E) other commodities raised or produced on farms, as determined
appropriate by the Secretary; and
(F) products processed or manufactured from products specified in
the preceding subparagraphs, as determined appropriate by the
Secretary.
(2) BOARD- The term `Board' means the National Organic Products
Board established under section 1094(b).
(3) COMMODITY PROMOTION LAW- The term `commodity promotion law' has
the meaning given the term in section 501(a) of the Federal Agriculture
Improvement and Reform Act of 1996 (7 U.S.C. 7401(a)).
(4) CONFLICT OF INTEREST- The term `conflict of interest' means a
situation in which a member or employee of the Board has a direct or
indirect financial interest in a person that performs a service for, or
enters into a contract with, the Board for anything of economic
value.
(5) DEPARTMENT- The term `Department' means the Department of
Agriculture.
(6) FIRST HANDLER- The term `first handler' means--
(A) the first person that buys or takes possession of an organic
product from a producer for marketing; and
(B) in a case in which a producer markets an organic product
directly to consumers, the producer.
(7) IMPORTER- The term `importer' means any person that imports an
organic product from outside the United States for sale in the United States
as a principal or as an agent, broker, or consignee of any
person.
(8) INFORMATION- The term `information' means information and
programs that are designed to increase--
(A) efficiency in processing; and
(B) the development of new markets, marketing strategies,
increased marketing efficiency, and activities to enhance the image of
organic products on a national or international basis.
(9) MARKET- The term `market' means to sell or to otherwise dispose
of an organic product in interstate, foreign, or intrastate
commerce.
(10) ORDER- The term `order' means the order issued by the Secretary
under section 1093 that provides for a program of generic promotion,
research, and information regarding organic products designed
to--
(A) strengthen the position of organic products in the
marketplace;
(B) maintain and expand existing domestic and foreign markets and
uses for organic products;
(C) develop new markets and uses for organic products;
or
(D) assist producers in meeting conservation
objectives.
(11) ORGANICALLY PRODUCED- The term `organically produced', with
respect to an agricultural product, means produced and handled in accordance
with the Organic Foods Production Act of 1990 (7 U.S.C. 6501 et
seq.).
(12) ORGANIC PRODUCT- The term `organic product' means an
agricultural product that is organically produced.
(13) ORGANIC PRODUCTS INDUSTRY- The term `organic products industry'
includes nonprofit and other organizations representing the interests of
producers, first handlers, and importers of organic products.
(14) PERSON- The term `person' means any individual, group of
individuals, partnership, corporation, association, cooperative, or any
other legal entity.
(15) PRODUCER- The term `producer' means any person that is engaged
in the production and sale of an organic product in the United
States.
(16) PROMOTION- The term `promotion' means any action taken by the
Board under the order, including paid advertising, to present a favorable
image of organic products to the public to improve the competitive position
of organic products in the marketplace and to stimulate sales of organic
products.
(17) RESEARCH- The term `research' means any type of test, study, or
analysis designed to advance the image, desirability, use, marketability,
production, product development, or quality of an organic
product.
(18) SECRETARY- The term `Secretary' means the Secretary of
Agriculture.
(19) STATE- The term `State' means--
(B) the District of Columbia;
(C) the Commonwealth of Puerto Rico; and
(D) any other territory or possession of the United
States.
(20) SUSPEND- The term `suspend' means to issue a rule under section
553 of title 5, United States Code, to temporarily prevent the operation of
the order during a particular period of time specified in the
rule.
(21) TERMINATE- The term `terminate' means to issue a rule under
section 553 of title 5, United States Code, to cancel permanently the
operation of the order beginning on a date certain specified in the
rule.
(22) UNITED STATES- The term `United States', when used in a
geographical sense, means all of the States.
SEC. 1093. ISSUANCE OF ORDERS.
(1) IN GENERAL- To effectuate the purpose of this subtitle, the
Secretary may issue, and amend from time to time, an order applicable
to--
(A) producers of organic products;
(B) the first handlers of organic products (and other persons in
the marketing chain, as appropriate); and
(C) the importers of organic products.
(2) NATIONAL SCOPE- The order shall be national in scope.
(b) PROCEDURE FOR ISSUANCE-
(1) DEVELOPMENT OR RECEIPT OF PROPOSED ORDER- A proposed order with
respect to organic products may be--
(A) prepared by the Secretary at any time on or after January 1,
2004; or
(B) submitted to the Secretary on or after January 1, 2004,
by--
(i) an association of producers of organic products;
or
(ii) any other person that may be affected by the issuance of
the order with respect to organic products.
(2) CONSIDERATION OF PROPOSED ORDER- If the Secretary determines
that a proposed order is consistent with and will effectuate the purpose of
this subtitle, the Secretary shall--
(A) publish the proposed order in the Federal Register;
and
(B) give due notice and opportunity for public comment on the
proposed order.
(3) PREPARATION OF FINAL ORDER- After notice and opportunity for
public comment under paragraph (2) regarding a proposed order, the Secretary
shall--
(A) take into consideration the comments received in preparing a
final order; and
(B) ensure, to the maximum extent practicable, that the final
order is in conformity with the terms, conditions, and requirements of
this subtitle.
(c) ISSUANCE AND EFFECTIVE DATE-
(1) IN GENERAL- Except as provided in paragraph (2), if the
Secretary determines that the order is consistent with and will effectuate
the purpose of this subtitle, the Secretary shall issue the final
order.
(2) EXCEPTION- Paragraph (1) shall not apply in a case in which an
initial referendum is conducted under section 1097(a).
(3) EFFECTIVE DATE- The final order shall be issued and shall take
effect not later than 270 days after the date of publication of the proposed
order that was the basis for the final order.
SEC. 1094. REQUIRED TERMS IN ORDER.
(a) IN GENERAL- The order shall contain the terms and conditions
specified in this section.
(1) ESTABLISHMENT- The order shall establish a National Organic
Products Board to carry out a program of generic promotion, research, and
information relating to organic products that effectuates the purposes of
this subtitle.
(i) IN GENERAL- The Board shall consist of the number of members
determined by the Secretary, in consultation with the organic products
industry.
(ii) ALTERNATE MEMBERS- In addition to the members described in
clause (i), the Secretary may appoint alternate members of the
Board.
(i) IN GENERAL- The Secretary shall appoint members of the Board
(including any alternate members) from among producers, first handlers,
and importers of organic products that elect to pay the assessment
described in section 1096, and others in the marketing chain, as
appropriate.
(ii) MEMBERS OF THE PUBLIC- The Secretary may appoint 1 or more
members of the general public to the Board.
(C) NOMINATIONS- The Secretary may make appointments from
nominations made in accordance with the method described in the
order.
(D) GEOGRAPHICAL AND INDUSTRY REPRESENTATION- To ensure fair and
equitable representation of organic producers and others covered by the
order, the composition of the Board shall reflect--
(i) the geographical distribution of the production of organic
products in the United States;
(ii) the quantity or value of organic products covered by the
order imported into the United States; and
(iii) the variations in the United States in the scale of
organic production operations.
(3) REAPPORTIONMENT OF BOARD MEMBERSHIP- In accordance with rules
issued by the Secretary, at least once in each 4-year period, the Board
shall--
(A) review the geographical distribution in the United States of
the production of organic products in, variations in the scale of organic
production operations in, and quantity or value of organic products
imported into, the United States; and
(B) as necessary, recommend to the Secretary the reapportionment
of the Board membership to reflect changes in that geographical
distribution of production, variations in scale of organic production
operations, or quantity or value imported.
(A) VACANCIES- The order shall provide for notice of Board
vacancies to the organic products industry.
(i) IN GENERAL- The Board shall provide prior notice of meetings
of the Board to--
(I) the Secretary, to permit the Secretary, or a designated
representative of the Secretary, to attend the meetings;
and
(ii) ATTENDANCE- A meeting of the Board shall be open to the
public.
(A) IN GENERAL- The members and any alternate members of the Board
shall each serve for a term of 3 years, except that the members and any
alternate members initially appointed to the Board shall serve for terms
of not more than 2, 3, and 4 years, as specified by the
order.
(B) LIMITATION ON CONSECUTIVE TERMS- A member or alternate member
may serve not more than 2 consecutive terms.
(C) CONTINUATION OF TERM- Notwithstanding subparagraph (B), each
member or alternate member shall continue to serve until a successor is
appointed by the Secretary.
(D) VACANCIES- A vacancy arising before the expiration of a term
of office of an incumbent member or alternate of the Board shall be filled
in a manner provided for in the order.
(A) IN GENERAL- Members and any alternate members of the Board
shall serve without compensation.
(B) TRAVEL EXPENSES- If approved by the Board, members or
alternate members shall be reimbursed for reasonable travel expenses,
which may include a per diem allowance or actual subsistence incurred
while away from their homes or regular places of business in the
performance of services for the Board.
(c) POWERS AND DUTIES OF BOARD- The order shall specify the powers and
duties of the Board established under the order, including the power and
duty--
(1) to administer, and collect assessments under, the order in
accordance with the terms and conditions of the order;
(2) to develop and recommend to the Secretary for
approval--
(A) such bylaws as are necessary for the functioning of the
Board;
(B) such rules as are necessary to administer the order;
and
(C) such activities as are authorized to be carried out under the
order;
(3) to meet, organize, and select from among the members of the
Board a chairperson, other officers, and committees and subcommittees, as
the Board determines to be appropriate;
(4) to employ persons, other than the members, as the Board
considers necessary to assist the Board in carrying out the duties of the
Board (and to determine the compensation and specify the duties of those
persons);
(5) subject to subsection (e), to develop and carry out generic
promotion, research, and information activities relating to organic
products;
(6) to prepare and submit for the approval of the Secretary, before
the beginning of each fiscal year--
(A) rates of assessment under section 1096; and
(B) an annual budget of the anticipated expenses to be incurred in
the administration of the order, including the probable cost of each
promotion, research, and information activity proposed to be developed or
carried out by the Board;
(7) to borrow funds necessary for the startup expenses of the
order;
(8) subject to subsection (f), to enter into contracts or agreements
to develop and carry out generic promotion, research, and information
activities relating to organic products;
(9) to pay the cost of the activities with--
(A) assessments collected under section 1096;
(B) earnings from invested assessments; and
(10)(A) to keep records that accurately reflect the actions and
transactions of the Board;
(B) to keep and report minutes of each meeting of the Board to the
Secretary; and
(C) to furnish the Secretary with any information or records the
Secretary requests;
(11) to receive, investigate, and report to the Secretary complaints
of violations of the order; and
(12) after providing public notice and an opportunity to comment, to
recommend to the Secretary such amendments to the order as the Board
considers appropriate.
(d) PROHIBITED ACTIVITIES- The Board may not engage in, and shall
prohibit the employees and agents of the Board from engaging in--
(1) any action that would be a conflict of interest;
(2) using funds collected by the Board under the order, any action
carried out for the purpose of influencing any legislation or governmental
action or policy (other than recommending to the Secretary amendments to the
order); and
(3) any advertising (including promotion, research, and information
activities authorized to be carried out under the order) that may be false
or misleading or disparaging to another agricultural commodity.
(e) ACTIVITIES AND BUDGETS-
(1) ACTIVITIES- The order shall require the Board established under
the order to submit to the Secretary for approval plans and projects for
promotion, research, or information relating to organic products.
(A) SUBMISSION TO SECRETARY-
(i) IN GENERAL- The order shall require the Board established
under the order to submit to the Secretary for approval a budget of the
anticipated annual expenses and disbursements of the Board to be paid to
administer the order.
(ii) SUBMISSION- The budget shall be
submitted--
(I) before the beginning of a fiscal year;
and
(II) as frequently as is necessary after the beginning of the
fiscal year.
(B) REIMBURSEMENT OF SECRETARY- The order shall require that the
Secretary be reimbursed for all expenses incurred by the Secretary in the
implementation, administration, and supervision of the
order.
(3) INCURRING EXPENSES- The Board may incur the expenses described
in paragraph (2) and other expenses for the administration, maintenance, and
functioning of the Board as authorized by the Secretary.
(A) IN GENERAL- Expenses incurred under paragraph (3) shall be
paid by the Board using--
(i) assessments collected under section 1096;
(ii) earnings obtained from assessments; and
(iii) other income of the Board.
(B) BORROWED FUNDS- Any funds borrowed by the Board shall be
expended only for startup costs and capital outlays.
(5) LIMITATION ON SPENDING- For fiscal years beginning 3 or more
years after the date of the establishment of the Board, the Board may not
expend for administration (except for reimbursements to the Secretary
required under paragraph (2)(B)), maintenance, and functioning of the Board
in a fiscal year an amount that exceeds 15 percent of the assessment and
other income received by the Board for the fiscal year.
(f) CONTRACTS AND AGREEMENTS-
(1) IN GENERAL- The order shall provide that, with the approval of
the Secretary, the Board established under the order may--
(A) enter into contracts and agreements to carry out generic
promotion, research, and information activities relating to organic
products, including contracts and agreements with producer associations or
other entities as considered appropriate by the Secretary;
and
(B) pay the cost of approved generic promotion, research, and
information activities using--
(i) assessments collected under section 1096;
(ii) earnings obtained from assessments; and
(iii) other income of the Board.
(2) REQUIREMENTS- Each contract or agreement shall provide that any
person that enters into the contract or agreement with the Board
shall--
(A) develop and submit to the Board a proposed activity together
with a budget that specifies the cost to be incurred to carry out the
activity;
(B) keep accurate records of all of transactions of the person
relating to the contract or agreement;
(C) account for funds received and expended in connection with the
contract or agreement;
(D) make periodic reports to the Board of activities conducted
under the contract or agreement; and
(E) make such other reports as the Board or the Secretary
considers relevant.
(1) IN GENERAL- The order shall require the Board--
(A)(i) to maintain such records as the Secretary may require;
and
(ii) to make the records available to the Secretary for inspection
and audit;
(B) to collect and submit to the Secretary, at any time the
Secretary may specify, any information the Secretary may
request;
(C) to account for the receipt and disbursement of all funds in
the possession, or under the control, of the Board; and
(D) to make public to the participants in the order the minutes of
Board meetings and actions of the Board.
(2) AUDITS- The order shall require the Board to have--
(A) its records audited by an independent auditor at the end of
each fiscal year; and
(B) a report of the audit submitted directly to the
Secretary.
(1) IN GENERAL- In accordance with section 501(c) of the Federal
Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7401(c)), the order
shall require the Board to provide for the independent evaluation of all
generic promotion, research, and information activities carried out under
the order.
(2) RESULTS- The results of an evaluation described in paragraph
(1), with any confidential business information expunged, shall be made
available for public review by producers, first handlers, importers, and
other participants in the order.
(3) CONFORMING AMENDMENT- Section 501(a) of the Federal Agriculture
Improvement and Reform Act of 1996 (7 U.S.C. 7401(a)) is
amended--
(A) in paragraph (17), by striking `or' at the end;
(B) in paragraph (18), by striking the period at the end and
inserting `; or'; and
(C) by adding at the end the following:
`(19) section 1094(h) of the Organic Products Promotion, Research,
and Information Act of 2002.'.
(i) BOOKS AND RECORDS OF PERSONS COVERED BY ORDER-
(1) IN GENERAL- The order shall require that producers, first
handlers and other persons in the marketing chain, as appropriate, and
importers covered by the order shall--
(A) maintain records sufficient to ensure compliance with the
order and regulations;
(B) submit to the Board any information required by the Board to
carry out the responsibilities of the Board under the order;
and
(C) make the records described in subparagraph (A) available,
during normal business hours, for inspection by employees or agents of the
Board or the Department, including any records necessary to verify
information required under subparagraph (B).
(2) TIME REQUIREMENT- Any record required to be maintained under
paragraph (1) shall be maintained for such time period as the Secretary may
prescribe.
(3) OTHER INFORMATION- The Secretary may use, and may authorize the
Board to use under this subtitle, information regarding persons subject to
the order that is collected by the Department under any other
law.
(4) CONFIDENTIALITY OF INFORMATION-
(A) IN GENERAL- Except as otherwise provided in this subtitle, all
information obtained under paragraph (1) or as part of a referendum under
section 1097 shall be kept confidential by all officers, employees, and
agents of the Department and of the Board.
(B) DISCLOSURE- Information referred to in subparagraph (A) may be
disclosed only if--
(i) the Secretary considers the information relevant;
and
(ii) the information is revealed in a judicial proceeding or
administrative hearing--
(I) brought at the direction or on the request of the
Secretary; or
(II) to which the Secretary or any officer of the Department
is a party.
(C) OTHER EXCEPTIONS- This paragraph shall not
prohibit--
(i) the issuance of general statements based on reports or on
information relating to a number of persons subject to the order if the
statements do not identify the information furnished by any person;
or
(ii) the publication, by direction of the Secretary,
of--
(I) the name of any person violating any order;
and
(II) a statement of the particular provisions of the order
violated by the person.
(D) PENALTY- Any person that willfully violates this subsection
shall be subject, on conviction, to a fine of not more than $1,000 or to
imprisonment for not more than 1 year, or both.
(5) WITHHOLDING INFORMATION- This subsection shall not authorize the
withholding of information from Congress.
SEC. 1095. PERMISSIVE TERMS IN ORDER.
(a) EXEMPTIONS- The order may contain--
(1) authority for the Secretary to exempt from the order any de
minimis quantity of organic products otherwise covered by the order;
and
(2) authority for the Board to require satisfactory safeguards
against improper use of the exemption.
(b) DIFFERENT PAYMENT AND REPORTING SCHEDULES- The order may contain
authority for the Board to designate different payment and reporting schedules
to recognize differences in organic product industry marketing practices and
procedures used in different production and importing areas.
(1) IN GENERAL- The order may contain authority to develop and carry
out research, promotion, and information activities designed to expand,
improve, or make more efficient the marketing or use of organic products in
domestic and foreign markets.
(2) APPLICABLE AUTHORITY- Section 1094(e) shall apply with respect
to activities authorized under this subsection.
(d) RESERVE FUNDS- The order may contain authority to reserve funds
from assessments collected under section 1096 to permit an effective and
continuous coordinated program of research, promotion, and information in
years in which the yield from assessments may be reduced, except that the
amount of funds reserved may not exceed the greatest aggregate amount of the
anticipated disbursements specified in budgets approved under section 1094(e)
by the Secretary for any 2 fiscal years.
(e) GENERIC ACTIVITIES- The order may contain authority to provide
credits of assessments in accordance with section 1096(d) for those
individuals that contribute to other similar generic research, promotion, and
information programs at the State, regional, or local level.
(f) OTHER AUTHORITY- The order may contain authority to take any other
action that--
(1) is not inconsistent with the purpose of this subtitle, any term
or condition specified in section 1094, or any rule issued to carry out this
subtitle; and
(2) is necessary to administer the order.
SEC. 1096. ASSESSMENTS.
(a) IN GENERAL- A producer, first handler, or importer of an organic
product may elect to pay an assessment under the order.
(b) PAYMENT- If a first handler or importer of an organic product
elects to pay an assessment, the assessment shall be, as appropriate--
(1) paid by first handlers with respect to the organic product
produced and marketed in the United States; and
(2) paid by importers with respect to the organic product imported
into the United States, if the imported organic product is covered by the
order under section 1095(f).
(c) COLLECTION- Any assessment collected under the order shall be
remitted to the Board at the time and in the manner prescribed by the
order.
(d) LIMITATION ON ASSESSMENTS- Not more than 1 assessment may be
collected on a first handler or importer under subsection (a) with respect to
any organic product.
(e) INVESTMENT OF ASSESSMENTS- Pending disbursement of assessments
under a budget approved by the Secretary, the Board may invest assessments
collected under this section in--
(1) obligations of the United States or any agency of the United
States;
(2) general obligations of any State or any political subdivision of
a State;
(3) interest-bearing accounts or certificates of deposit of
financial institutions that are members of the Federal Reserve System;
or
(4) obligations fully guaranteed as to principal and interest by the
United States.
(f) CREDITS- Notwithstanding any other provision of law or any order
issued under any commodity promotion law, the Secretary shall permit a
producer, first handler, or importer of an organic product that pays an
assessment to the Board to receive a credit for the assessment against any
assessment that would otherwise be paid by the producer, first handler, or
importer under an order issued under another commodity promotion law.
SEC. 1097. REFERENDA.
(1) IN GENERAL- For the purpose of ascertaining whether the persons
to be covered by the order favor the order going into effect, the Secretary
shall conduct an initial referendum among persons that, during a
representative period determined by the Secretary, engaged in--
(A) the production or handling of organic products;
or
(B) the importation of organic products.
(2) PROCEDURE- The results of the referendum shall be determined in
accordance with subsection (e).
(b) SUBSEQUENT REFERENDUM- Not later than 3 years after the date on
which assessments were first carried out under the order, and at least once
every 4 years thereafter, for the purpose of ascertaining whether the persons
covered by the order favor the continuation, suspension, or termination of the
order, the Secretary shall conduct a referendum among persons that, during a
representative period determined by the Secretary, have engaged in--
(1) the production or handling of organic products; or
(2) the importation of organic products.
(c) ADDITIONAL REFERENDA- For the purpose of ascertaining whether
persons covered by the order favor the continuation, suspension, or
termination of the order, the Secretary shall conduct additional
referenda--
(1) at the request of the Board; or
(2) at the request of 10 percent or more of the number of persons
eligible to vote under subsection (b).
(d) OPTIONAL REFERENDA- The Secretary may conduct a referendum at any
time to determine whether the continuation, suspension, or termination of the
order or a provision of the order is favored by persons eligible to vote under
subsection (b).
(e) APPROVAL OF ORDER- The order may provide for the approval of the
order in a referendum by a majority of persons voting in the
referendum.
(f) MANNER OF CONDUCTING REFERENDA-
(1) IN GENERAL- A referendum conducted under this section shall be
conducted in the manner determined by the Secretary to be
appropriate.
(2) ADVANCE REGISTRATION- If the Secretary determines that an
advance registration of eligible voters in a referendum is necessary before
the voting period to facilitate the conduct of the referendum, the Secretary
may institute the advance registration procedures--
(B) in person through the use of national and local offices of the
Department; or
(C) by such other means as may be prescribed by the
Secretary.
(3) VOTING- Eligible voters may vote in the referendum--
(C) by such other means as may be prescribed by the
Secretary.
(A) IN GENERAL- Not later than 30 days before the date on which a
referendum is conducted under this section with respect to the order, the
Secretary shall notify the organic product industry, in such manner as
determined to be appropriate by the Secretary, of the period during which
voting in the referendum will occur.
(B) CONTENTS- The notice shall explain any registration and voting
procedures established under this subsection.
(g) RESULTS OF REFERENDA- The results of referenda conducted under
this section shall be made available to the public.
SEC. 1098. PETITION AND REVIEW OF ORDERS.
(1) IN GENERAL- A person subject to the order may file with the
Secretary a petition--
(A) stating that the order, any provision of the order, or any
obligation imposed in connection with the order, is not established in
accordance with law; and
(B) requesting a modification of the order or an exemption from
the order.
(2) HEARING- The Secretary shall give the petitioner an opportunity
for a hearing on the petition, in accordance with regulations promulgated by
the Secretary.
(A) IN GENERAL- After the hearing, the Secretary shall make a
ruling on the petition.
(B) FINALITY- The ruling shall be final, subject to review in
accordance with subsection (b).
(4) LIMITATION ON PETITION- Any petition filed under this subsection
challenging the order, any provision of the order, or any obligation imposed
in connection with the order, shall be filed not later than 2 years after
the effective date of the order, provision, or obligation subject to
challenge in the petition.
(1) COMMENCEMENT OF ACTION- The district court of the United States
for any district in which a person that is a petitioner under subsection (a)
resides or carries on business shall have jurisdiction to review the final
ruling on the petition of the person, if a complaint for that purpose is
filed not later than 20 days after the date of the entry of the final ruling
by the Secretary under subsection (a)(3).
(2) PROCESS- Service of process in a proceeding may be made on the
Secretary by delivering a copy of the complaint to the Secretary.
(3) REMANDS- If the court determines that the ruling is not in
accordance with law, the court shall remand the matter to the Secretary with
directions--
(A) to make such ruling as the court determines to be in
accordance with law; or
(B) to take such further action as, in the opinion of the court,
the law requires.
(c) EFFECT ON ENFORCEMENT PROCEEDINGS- The pendency of a petition
filed under subsection (a) or an action commenced under subsection (b) shall
not operate as a stay of any action authorized by section 1098A to be taken to
enforce this subtitle, including any rule, order, or penalty in effect under
this subtitle.
SEC. 1098A. ENFORCEMENT.
(a) JURISDICTION- The district courts of the United States shall have
jurisdiction specifically to enforce, and to prevent and restrain a person
from violating, the order issued, or any regulation promulgated, under this
subtitle.
(b) REFERRAL TO ATTORNEY GENERAL- A civil action authorized to be
brought under this section shall be referred to the Attorney General for
appropriate action, except that the Secretary shall not be required to refer
to the Attorney General a violation of this subtitle if the Secretary believes
that the administration and enforcement of this subtitle would be adequately
served by--
(1) providing a suitable written notice or warning to the person
that committed the violation; or
(2) conducting an administrative action under this
section.
(c) CIVIL PENALTIES AND ORDERS-
(1) CIVIL PENALTIES- A person that willfully violates the order or
regulation promulgated by the Secretary under this subtitle may be assessed
by the Secretary a civil penalty of not less than $1,000 and not more than
$10,000 for each violation.
(2) SEPARATE OFFENSE- Each violation and each day during which there
is a failure to comply with the order, or with any regulation promulgated by
the Secretary, shall be considered to be a separate offense.
(3) CEASE-AND-DESIST ORDERS- In addition to, or in lieu of, a civil
penalty, the Secretary issue an order requiring a person to cease and desist
from violating--
(B) any regulation promulgated under this subtitle.
(4) NOTICE AND HEARING- No order assessing a penalty or
cease-and-desist order may be issued by the Secretary under this subsection
unless the Secretary provides notice and an opportunity for a hearing on the
record with respect to the violation.
(5) FINALITY- An order assessing a penalty, or a cease-and-desist
order issued under this subsection by the Secretary, shall be final and
conclusive unless the person against whom the order is issued files an
appeal from the order with the United States court of appeals, as provided
in subsection (d).
(d) REVIEW BY COURT OF APPEALS-
(1) IN GENERAL- A person against whom an order is issued under
subsection (c) may obtain review of the order by--
(A) filing, not later than 30 days after the person receives
notice of the order, a notice of appeal in--
(i) the United States court of appeals for the circuit in which
the person resides or carries on business; or
(ii) the United States Court of Appeals for the District of
Columbia Circuit; and
(B) simultaneously sending a copy of the notice of appeal by
certified mail to the Secretary.
(2) RECORD- The Secretary shall file with the court a certified copy
of the record on which the Secretary has determined that the person has
committed a violation.
(3) STANDARD OF REVIEW- A finding of the Secretary under this
section shall be set aside only if the finding is found to be unsupported by
substantial evidence on the record.
(e) FAILURE TO OBEY CEASE-AND-DESIST ORDERS-
(1) IN GENERAL- A person that fails to obey a valid cease-and-desist
order issued by the Secretary under this section, after an opportunity for a
hearing, shall be subject to a civil penalty assessed by the Secretary of
not less than $1,000 and not more than $10,000 for each offense.
(2) SEPARATE VIOLATIONS- Each day during which the failure continues
shall be considered to be a separate violation of the cease-and-desist
order.
(f) FAILURE TO PAY PENALTIES-
(1) IN GENERAL- If a person fails to pay a civil penalty imposed
under this section by the Secretary, the Secretary shall refer the matter to
the Attorney General for recovery of the amount assessed in the district
court of the United States for any district in which the person resides or
carries on business.
(2) REVIEWABILITY- In the action, the validity and appropriateness
of the order imposing the civil penalty shall not be subject to
review.
(g) ADDITIONAL REMEDIES- The remedies provided in this section shall
be in addition to, and not exclusive of, other remedies that may be
available.
SEC. 1098B. INVESTIGATIONS AND POWER TO SUBPOENA.
(a) INVESTIGATIONS- The Secretary may make such investigations as the
Secretary considers necessary--
(1) for the effective administration of this subtitle; or
(2) to determine whether any person subject to this subtitle has
engaged, or is about to engage, in any action that constitutes or will
constitute a violation of this subtitle or any order or regulation issued
under this subtitle.
(b) SUBPOENAS, OATHS, AND AFFIRMATIONS-
(1) IN GENERAL- For the purpose of any investigation under
subsection (a), the Secretary may administer oaths and affirmations,
subpoena witnesses, compel the attendance of witnesses, take evidence, and
require the production of any records or documents that are relevant to the
inquiry.
(2) SCOPE- The attendance of witnesses and the production of records
or documents may be required from any place in the United States.
(1) IN GENERAL- In the case of contumacy by, or refusal to obey a
subpoena issued to, any person, the Secretary may invoke the aid of any
court of the United States within the jurisdiction of which the
investigation or proceeding is carried on, or where the person resides or
carries on business, in order to require the attendance and testimony of the
person or the production of records or documents.
(2) ACTION BY COURT- The court may issue an order requiring the
person to appear before the Secretary to produce records or documents or to
give testimony regarding the matter under investigation.
(d) CONTEMPT- Any failure to obey the order of the court may be
punished by the court as a contempt of the court.
(e) PROCESS- Process in any case under this section may be
served--
(1) in the judicial district in which the person resides or carries
on business; or
(2) wherever the person may be found.
SEC. 1098C. SUSPENSION OR TERMINATION.
(a) MANDATORY SUSPENSION OR TERMINATION- The Secretary shall suspend
or terminate an order or a provision of an order if the Secretary determines
that--
(1) an order or a provision of an order obstructs or does not tend
to effectuate the purpose of this subtitle; or
(2) an order or a provision of an order is not favored by persons
voting in a referendum conducted under section 1097.
(b) IMPLEMENTATION OF SUSPENSION OR TERMINATION- If, as a result of a
referendum conducted under section 1097, the Secretary determines that an
order is not approved, the Secretary shall--
(1) not later than 180 days after making the determination, suspend
or terminate, as the case may be, collection of assessments under the order;
and
(2) as soon as practicable, suspend or terminate, as the case may
be, activities under the order in an orderly manner.
SEC. 1098D. AMENDMENTS TO ORDERS.
The provisions of this subtitle applicable to an order shall be
applicable to any amendment to an order, except that section 1097 shall not
apply to an amendment.
SEC. 1098E. EFFECT ON OTHER LAWS.
Except as otherwise expressly provided in this subtitle, this subtitle
shall not affect or preempt any other Federal or State law authorizing
promotion or research relating to an organic product.
SEC. 1098F. REGULATIONS.
The Secretary may promulgate such regulations as are necessary to
carry out this subtitle and the power vested in the Secretary under this
subtitle.
SEC. 1098G. AUTHORIZATION OF APPROPRIATIONS.
(a) IN GENERAL- There are authorized to be appropriated such sums as
are necessary to carry out this subtitle.
(b) LIMITATION ON EXPENDITURES FOR ADMINISTRATIVE EXPENSES- Funds made
available to carry out this subtitle may not be expended for the payment of
expenses incurred by the Board to administer the order.
Subtitle G--Administration
SEC. 1099. REGULATIONS.
(a) IN GENERAL- The Secretary of Agriculture may promulgate such
regulations as are necessary to implement this Act and the amendments made by
this Act.
(b) PROCEDURE- The promulgation of the regulations and administration
of title I and sections 459 and 508 and the amendments made by title I and
sections 459 and 508 shall be made without regard to--
(1) the notice and comment provisions of section 553 of title 5,
United States Code;
(2) the Statement of Policy of the Secretary of Agriculture
effective July 24, 1971 (36 Fed. Reg. 13804), relating to notices of
proposed rulemaking and public participation in rulemaking; and
(3) chapter 35 of title 44, United States Code (commonly known as
the `Paperwork Reduction Act').
(c) CONGRESSIONAL REVIEW OF AGENCY RULEMAKING- In carrying out
subsection (b), the Secretary shall use the authority provided under section
808 of title 5, United States Code.
SEC. 1099A. EFFECT OF AMENDMENTS.
(a) IN GENERAL- Except as otherwise specifically provided in this Act
and notwithstanding any other provision of law, this Act and the amendments
made by this Act shall not affect the authority of the Secretary of
Agriculture to carry out an agricultural market transition, price support, or
production adjustment program for any of the 1996 through 2001 crop, fiscal,
or calendar years under a provision of law in effect immediately before the
date of enactment of this Act.
(b) LIABILITY- A provision of this Act or an amendment made by this
Act shall not affect the liability of any person under any provision of law as
in effect immediately before the date of enactment of this Act.
SEC. 1099B. COMMODITY CREDIT CORPORATION FUNDING.
Except for funds made available through a user fee or funds made
available in an appropriation act, notwithstanding any other provision of this
Act or an amendment made by this Act, any funds that are made available
through the transfer of funds from the Secretary of the Treasury to the
Secretary of Agriculture expressly under this Act or an amendment made by this
Act shall be made available through funds of the Commodity Credit
Corporation.
Attest:
Secretary.
107th CONGRESS
2d Session
H. R. 2646
AMENDMENT
END