--H.R.2646--
H.R.2646
One Hundred Seventh Congress
of the
United States of America
AT THE SECOND SESSION
Begun and held at the City of Washington on Wednesday,
the twenty-third day of January, two thousand and two
An Act
To provide for the continuation of agricultural programs through
fiscal year 2007, and for other purposes.
Be it enacted by the Senate and House of Representatives of the United
States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) SHORT TITLE- This Act may be cited as the `Farm Security and Rural
Investment Act of 2002'.
(b) TABLE OF CONTENTS- The table of contents of this Act is as follows:
Sec. 1. Short title; table of contents.
TITLE I--COMMODITY PROGRAMS
Subtitle A--Direct Payments and Counter-Cyclical Payments
Sec. 1101. Establishment of base acres and payment acres for a
farm.
Sec. 1102. Establishment of payment yield.
Sec. 1103. Availability of direct payments.
Sec. 1104. Availability of counter-cyclical payments.
Sec. 1105. Producer agreement required as condition of provision of
direct payments and counter-cyclical payments.
Sec. 1106. Planting flexibility.
Sec. 1107. Relation to remaining payment authority under production
flexibility contracts.
Sec. 1108. Period of effectiveness.
Subtitle B--Marketing Assistance Loans and Loan Deficiency Payments
Sec. 1201. Availability of nonrecourse marketing assistance loans for
loan commodities.
Sec. 1202. Loan rates for nonrecourse marketing assistance loans.
Sec. 1203. Term of loans.
Sec. 1204. Repayment of loans.
Sec. 1205. Loan deficiency payments.
Sec. 1206. Payments in lieu of loan deficiency payments for grazed
acreage.
Sec. 1207. Special marketing loan provisions for upland cotton.
Sec. 1208. Special competitive provisions for extra long staple
cotton.
Sec. 1209. Availability of recourse loans for high moisture feed grains
and seed cotton.
Subtitle C--Peanuts
Sec. 1302. Establishment of payment yield and base acres for peanuts for
a farm.
Sec. 1303. Availability of direct payments for peanuts.
Sec. 1304. Availability of counter-cyclical payments for peanuts.
Sec. 1305. Producer agreement required as condition on provision of
direct payments and counter-cyclical payments.
Sec. 1306. Planting flexibility.
Sec. 1307. Marketing assistance loans and loan deficiency payments for
peanuts.
Sec. 1308. Miscellaneous provisions.
Sec. 1309. Termination of marketing quota programs for peanuts and
compensation to peanut quota holders for loss of quota asset value.
Sec. 1310. Repeal of superseded price support authority and effect of
repeal.
Subtitle D--Sugar
Sec. 1401. Sugar program.
Sec. 1402. Storage facility loans.
Sec. 1403. Flexible marketing allotments for sugar.
Subtitle E--Dairy
Sec. 1501. Milk price support program.
Sec. 1502. National dairy market loss payments.
Sec. 1503. Dairy export incentive and dairy indemnity programs.
Sec. 1504. Dairy product mandatory reporting.
Sec. 1505. Funding of dairy promotion and research program.
Sec. 1506. Fluid milk promotion.
Sec. 1507. Study of national dairy policy.
Sec. 1508. Studies of effects of changes in approach to national dairy
policy and fluid milk identity standards.
Subtitle F--Administration
Sec. 1601. Administration generally.
Sec. 1602. Suspension of permanent price support authority.
Sec. 1603. Payment limitations.
Sec. 1604. Adjusted gross income limitation.
Sec. 1605. Commission on application of payment limitations.
Sec. 1606. Adjustments of loans.
Sec. 1607. Personal liability of producers for deficiencies.
Sec. 1608. Extension of existing administrative authority regarding
loans.
Sec. 1609. Commodity Credit Corporation Inventory.
Sec. 1610. Reserve stock level.
Sec. 1611. Farm reconstitutions.
Sec. 1612. Assignment of payments.
Sec. 1613. Equitable relief from ineligibility for loans, payments, or
other benefits.
Sec. 1614. Tracking of benefits.
Sec. 1615. Estimates of net farm income.
Sec. 1616. Availability of incentive payments for certain
producers.
Sec. 1617. Renewed availability of market loss assistance and certain
emergency assistance to persons that failed to receive assistance under
earlier authorities.
Sec. 1618. Producer retention of erroneously paid loan deficiency
payments and marketing loan gains.
TITLE II--CONSERVATION
Subtitle A--Conservation Security
Sec. 2001. Conservation security program.
Sec. 2002. Conservation compliance.
Sec. 2003. Partnerships and cooperation.
Sec. 2004. Administrative requirements for conservation programs.
Sec. 2005. Reform and assessment of conservation programs.
Sec. 2006. Conforming amendments.
Subtitle B--Conservation Reserve
Sec. 2101. Conservation reserve program.
Subtitle C--Wetlands Reserve Program
Sec. 2201. Reauthorization.
Sec. 2203. Easements and agreements.
Sec. 2204. Changes in ownership; agreement modification;
termination.
Subtitle D--Environmental Quality Incentives
Sec. 2301. Environmental quality incentives program.
Subtitle E--Grassland Reserve
Sec. 2401. Grassland reserve program.
Subtitle F--Other Conservation Programs
Sec. 2501. Agricultural management assistance.
Sec. 2502. Grazing, wildlife habitat incentive, source water protection,
and Great Lakes basin programs.
Sec. 2503. Farmland protection program.
Sec. 2504. Resource conservation and development program.
Sec. 2505. Small watershed rehabilitation program.
Sec. 2506. Use of symbols, slogans, and logos.
Sec. 2507. Desert terminal lakes.
Subtitle G--Conservation Corridor Demonstration Program
Sec. 2602. Conservation corridor demonstration program.
Sec. 2603. Implementation of conservation corridor plan.
Sec. 2604. Funding requirements.
Subtitle H--Funding and Administration
Sec. 2701. Funding and administration.
TITLE III--TRADE
Subtitle A--Agricultural Trade Development and Assistance Act of 1954 and
Related Statutes
Sec. 3001. United States policy.
Sec. 3002. Provision of agricultural commodities.
Sec. 3003. Generation and use of currencies by private voluntary
organizations and cooperatives.
Sec. 3004. Levels of assistance.
Sec. 3005. Food Aid Consultative Group.
Sec. 3006. Maximum level of expenditures.
Sec. 3007. Administration.
Sec. 3008. Assistance for stockpiling and rapid transportation,
delivery, and distribution of shelf-stable prepackaged foods.
Sec. 3009. Sale procedure.
Sec. 3010. Prepositioning.
Sec. 3011. Transportation and related costs.
Sec. 3012. Expiration date.
Sec. 3013. Micronutrient fortification programs.
Sec. 3014. John Ogonowski Farmer-to-Farmer Program.
Subtitle B--Agricultural Trade Act of 1978
Sec. 3101. Exporter assistance initiative.
Sec. 3102. Export credit guarantee program.
Sec. 3103. Market access program.
Sec. 3104. Export enhancement program.
Sec. 3105. Foreign market development cooperator program.
Sec. 3106. Food for progress.
Sec. 3107. McGovern-Dole International Food for Education and Child
Nutrition Program.
Subtitle C--Miscellaneous
Sec. 3201. Surplus commodities for developing or friendly
countries.
Sec. 3202. Bill Emerson Humanitarian Trust Act.
Sec. 3203. Emerging markets.
Sec. 3204. Biotechnology and agricultural trade program.
Sec. 3205. Technical assistance for specialty crops.
Sec. 3206. Global market strategy.
Sec. 3207. Report on use of perishable commodities and live
animals.
Sec. 3208. Study on fee for services.
Sec. 3209. Sense of Congress concerning foreign assistance
programs.
Sec. 3210. Sense of the Senate concerning agricultural trade.
TITLE IV--NUTRITION PROGRAMS
Subtitle A--Food Stamp Program
Sec. 4101. Encouragement of payment of child support.
Sec. 4102. Simplified definition of income.
Sec. 4103. Standard deduction.
Sec. 4104. Simplified utility allowance.
Sec. 4105. Simplified determination of housing costs.
Sec. 4106. Simplified determination of deductions.
Sec. 4107. Simplified definition of resources.
Sec. 4108. Alternative issuance systems in disasters.
Sec. 4109. State option to reduce reporting requirements.
Sec. 4110. Cost neutrality for electronic benefit transfer
systems.
Sec. 4111. Report on electronic benefit transfer systems.
Sec. 4112. Alternative procedures for residents of certain group
facilities.
Sec. 4113. Redemption of benefits through group living
arrangements.
Sec. 4114. Availability of food stamp program applications on the
Internet.
Sec. 4115. Transitional food stamps for families moving from
welfare.
Sec. 4116. Grants for simple application and eligibility determination
systems and improved access to benefits.
Sec. 4117. Delivery to retailers of notices of adverse action.
Sec. 4118. Reform of quality control system.
Sec. 4119. Improvement of calculation of State performance
measures.
Sec. 4120. Bonuses for States that demonstrate high or most improved
performance.
Sec. 4121. Employment and training program.
Sec. 4122. Reauthorization of food stamp program and food distribution
program on Indian reservations.
Sec. 4123. Expanded grant authority.
Sec. 4124. Consolidated block grants for Puerto Rico and American
Samoa.
Sec. 4125. Assistance for community food projects.
Sec. 4126. Availability of commodities for the emergency food assistance
program.
Subtitle B--Commodity Distribution
Sec. 4201. Commodity supplemental food program.
Sec. 4202. Commodity donations.
Sec. 4203. Distribution of surplus commodities to special nutrition
projects.
Sec. 4204. Emergency food assistance.
Subtitle C--Child Nutrition and Related Programs
Sec. 4301. Commodities for school lunch program.
Sec. 4302. Eligibility for free and reduced price meals.
Sec. 4303. Purchases of locally produced foods.
Sec. 4304. Applicability of Buy-American requirement to Puerto
Rico.
Sec. 4305. Fruit and vegetable pilot program.
Sec. 4306. Eligibility for assistance under the special supplemental
nutrition program for women, infants, and children.
Sec. 4307. WIC farmers' market nutrition program.
Subtitle D--Miscellaneous
Sec. 4401. Partial restoration of benefits to legal immigrants.
Sec. 4402. Seniors farmers' market nutrition program.
Sec. 4403. Nutrition information and awareness pilot program.
Sec. 4404. Hunger fellowship program.
Sec. 4405. General effective date.
TITLE V--CREDIT
Subtitle A--Farm Ownership Loans
Sec. 5002. Financing of bridge loans.
Sec. 5003. Amount of guarantee of loans for farm operations on tribal
lands.
Sec. 5004. Guarantee of loans made under State beginning farmer or
rancher programs.
Sec. 5005. Down Payment Loan Program.
Sec. 5006. Beginning farmer and rancher contract land sales
program.
Subtitle B--Operating Loans
Sec. 5102. Suspension of limitation on period for which borrowers are
eligible for guaranteed assistance.
Subtitle C--Emergency Loans
Sec. 5201. Emergency loans in response to an emergency resulting from
quarantines.
Subtitle D--Administrative Provisions
Sec. 5301. Evaluations of direct and guaranteed loan programs.
Sec. 5302. Eligibility of trusts and limited liability companies for
farm ownership loans, farm operating loans, and emergency loans.
Sec. 5303. Debt settlement.
Sec. 5304. Temporary authority to enter into contracts; private
collection agencies.
Sec. 5305. Interest rate options for loans in servicing.
Sec. 5306. Elimination of requirement that Secretary require county
committees to certify in writing that certain loan reviews have been
conducted.
Sec. 5307. Simplified loan guarantee application available for loans of
greater amounts.
Sec. 5308. Inventory property.
Sec. 5309. Administration of certified lenders and preferred certified
lenders programs.
Sec. 5311. Loan authorization levels.
Sec. 5312. Reservation of funds for direct operating loans for beginning
farmers and ranchers.
Sec. 5313. Interest rate reduction program.
Sec. 5314. Reamortization of recapture payments.
Sec. 5315. Allocation of certain funds for socially disadvantaged
farmers and ranchers.
Sec. 5316. Waiver of borrower training certification requirement.
Sec. 5317. Timing of loan assessments.
Sec. 5318. Annual review of borrowers.
Sec. 5319. Loan eligibility for borrowers with prior debt
forgiveness.
Sec. 5320. Making and servicing of loans by personnel of State, county,
or area committees.
Sec. 5321. Eligibility of employees of State, county, or area committee
for loans and loan guarantees.
Subtitle E--Farm Credit
Sec. 5401. Repeal of burdensome approval requirements.
Sec. 5402. Banks for cooperatives.
Sec. 5403. Insurance corporation premiums.
Subtitle F--General Provisions
Sec. 5501. Technical amendments.
TITLE VI--RURAL DEVELOPMENT
Subtitle A--Consolidated Farm and Rural Development Act
Sec. 6001. Eligibility of rural empowerment zones and rural enterprise
communities for direct and guaranteed loans for essential community
facilities.
Sec. 6002. Water or waste disposal grants.
Sec. 6003. Rural business opportunity grants.
Sec. 6004. Child day care facilities.
Sec. 6005. Rural water and wastewater circuit rider program.
Sec. 6006. Multijurisdictional regional planning organizations.
Sec. 6007. Loan guarantees for certain rural development loans.
Sec. 6008. Tribal college and university essential community
facilities.
Sec. 6009. Emergency and imminent community water assistance grant
program.
Sec. 6010. Water and waste facility grants for Native American
tribes.
Sec. 6011. Grants for water systems for rural and native villages in
Alaska.
Sec. 6012. Grants to nonprofit organizations to finance the
construction, refurbishing, and servicing of individually-owned household
water well systems in rural areas for individuals with low or moderate
incomes.
Sec. 6013. Loans and loan guarantees for renewable energy systems.
Sec. 6014. Rural business enterprise grants.
Sec. 6015. Rural cooperative development grants.
Sec. 6016. Grants to broadcasting systems.
Sec. 6017. Business and industry loan modifications.
Sec. 6018. Use of rural development loans and grants for other
purposes.
Sec. 6019. Simplified application forms for loan guarantees.
Sec. 6020. Definition of rural and rural area.
Sec. 6021. National Rural Development Partnership.
Sec. 6022. Rural telework.
Sec. 6023. Historic barn preservation.
Sec. 6024. Grants for NOAA weather radio transmitters.
Sec. 6025. Grants to train farm workers in new technologies and to train
farm workers in specialized skills necessary for higher value crops.
Sec. 6026. Rural community advancement program.
Sec. 6027. Delta Regional Authority.
Sec. 6028. Northern Great Plains Regional Authority.
Sec. 6029. Rural business investment program.
Sec. 6030. Rural strategic investment program.
Sec. 6031. Funding of pending rural development loan and grant
applications.
Subtitle B--Rural Electrification Act of 1936
Sec. 6101. Guarantees for bonds and notes issued for electrification or
telephone purposes.
Sec. 6102. Expansion of 911 access.
Sec. 6103. Enhancement of access to broadband service in rural
areas.
Subtitle C--Food, Agriculture, Conservation, and Trade Act of 1990
Sec. 6201. Alternative Agricultural Research and Commercialization
Corporation.
Sec. 6202. Rural electronic commerce extension program.
Sec. 6203. Telemedicine and distance learning services in rural
areas.
Subtitle D--SEARCH Grants for Small Communities
Sec. 6302. SEARCH grant program.
Subtitle E--Miscellaneous
Sec. 6401. Value-added agricultural product market development
grants.
Sec. 6402. Agriculture innovation center demonstration program.
Sec. 6403. Fund for Rural America.
Sec. 6404. Rural local television broadcast signal loan
guarantees.
Sec. 6405. Rural firefighters and emergency personnel grant
program.
Sec. 6406. Sense of Congress on rural policy coordination.
TITLE VII--RESEARCH AND RELATED MATTERS
Subtitle A--Extensions
Sec. 7101. National rural information center clearinghouse.
Sec. 7102. Grants and fellowships for food and agricultural sciences
education.
Sec. 7103. Policy research centers.
Sec. 7104. Human nutrition intervention and health promotion research
program.
Sec. 7105. Pilot research program to combine medical and agricultural
research.
Sec. 7106. Nutrition education program.
Sec. 7107. Continuing animal health and disease research programs.
Sec. 7108. Appropriations for research on national or regional
problems.
Sec. 7109. Grants to upgrade agricultural and food sciences facilities
at 1890 land-grant colleges, including Tuskegee University.
Sec. 7110. National research and training virtual centers.
Sec. 7111. Hispanic-serving institutions.
Sec. 7112. Competitive grants for international agricultural science and
education programs.
Sec. 7113. University research.
Sec. 7114. Extension service.
Sec. 7115. Supplemental and alternative crops.
Sec. 7116. Aquaculture research facilities.
Sec. 7117. Rangeland research.
Sec. 7118. National genetics resources program.
Sec. 7119. High-priority research and extension initiatives.
Sec. 7120. Nutrient management research and extension initiative.
Sec. 7121. Agricultural telecommunications program.
Sec. 7122. Assistive technology program for farmers with
disabilities.
Sec. 7123. Partnerships for high-value agricultural product quality
research.
Sec. 7124. Biobased products.
Sec. 7125. Integrated research, education, and extension competitive
grants program.
Sec. 7126. Equity in Educational Land-Grant Status Act of 1994.
Sec. 7127. 1994 Institution research grants.
Sec. 7128. Endowment for 1994 Institutions.
Sec. 7129. Precision agriculture.
Sec. 7130. Thomas Jefferson Initiative for crop diversification.
Sec. 7131. Support for research regarding diseases of wheat, triticale,
and barley caused by fusarium graminearum or by tilletia indica.
Sec. 7132. Office of Pest Management Policy.
Sec. 7133. National Agricultural Research, Extension, Education, and
Economics Advisory Board.
Sec. 7134. Grants for research on production and marketing of alcohols
and industrial hydrocarbons from agricultural commodities and forest
products.
Sec. 7135. Agricultural experiment stations research facilities.
Sec. 7136. Competitive, special, and facilities research grants national
research initiative.
Sec. 7137. Federal agricultural research facilities authorization of
appropriations.
Sec. 7138. Critical agricultural materials research.
Subtitle B--Modifications
Sec. 7201. Equity in Educational Land-Grant Status Act of 1994.
Sec. 7202. Carryover for experiment stations.
Sec. 7203. Authorization percentages for research and extension formula
funds.
Sec. 7204. Carryover for eligible institutions.
Sec. 7205. Initiative for future agriculture and food systems.
Sec. 7206. Eligibility for integrated grants program.
Sec. 7207. Agricultural Research, Extension, and Education Reform Act of
1998.
Sec. 7208. Food, Agriculture, Conservation, and Trade Act of 1990.
Sec. 7209. National Agricultural Research, Extension, and Teaching
Policy Act of 1977.
Sec. 7210. Biotechnology risk assessment research.
Sec. 7211. Competitive, special, and facilities research grants.
Sec. 7212. Matching funds requirement for research and extension
activities of 1890 Institutions.
Sec. 7213. Matching requirements for research and extension formula
funds for insular area land-grant institutions.
Sec. 7214. Definition of food and agricultural sciences.
Sec. 7215. Federal Extension Service.
Sec. 7216. Policy research centers.
Sec. 7217. Availability of competitive grant funds.
Sec. 7218. Organic agriculture research and extension initiative.
Sec. 7219. Senior scientific research service.
Sec. 7220. Termination of certain schedule a appointments.
Sec. 7221. Biosecurity planning and response programs.
Sec. 7222. Indirect costs for small business innovation research
grants.
Sec. 7223. Carbon cycle research.
Subtitle C--Repeal of Certain Activities and Authorities
Sec. 7301. Food Safety Research Information Office and National
Conference.
Sec. 7302. Reimbursement of expenses under Sheep Promotion, Research,
and Information Act of 1994.
Sec. 7303. Market expansion research.
Sec. 7304. National Advisory Board on Agricultural Weather.
Sec. 7305. Agricultural information exchange with Ireland.
Sec. 7306. Pesticide resistance study.
Sec. 7307. Expansion of education study.
Sec. 7308. Task force on 10-year strategic plan for agricultural
research facilities.
Subtitle D--New Authorities
Sec. 7401. Subtitle definitions.
Sec. 7402. Research equipment grants.
Sec. 7403. Joint requests for proposals.
Sec. 7404. Review of Agricultural Research Service.
Sec. 7405. Beginning farmer and rancher development program.
Sec. 7406. Sense of Congress regarding doubling of funding for
agricultural research.
Sec. 7407. Organic production and market data initiatives.
Sec. 7408. International organic research collaboration.
Sec. 7409. Report on producers and handlers of organic agricultural
products.
Sec. 7410. Report on genetically modified pest-protected plants.
Sec. 7411. Study of nutrient banking.
Sec. 7412. Grants for youth organizations.
Subtitle E--Miscellaneous
Sec. 7501. Resident instruction and distance education at institutions
of higher education in United States insular areas.
Sec. 7503. Resident instruction and distance education grants program
for insular area institutions of higher education.
Sec. 7504. Declaration of extraordinary emergency and resulting
authorities.
Sec. 7505. Agricultural biotechnology research and development for
developing countries.
Sec. 7506. Land acquisition authority, national peanut research
laboratory, Dawson, Georgia.
TITLE VIII--FORESTRY
Subtitle A--Cooperative Forestry Assistance Act of 1978
Sec. 8001. Repeal of forestry incentives program and stewardship
incentive program.
Sec. 8002. Establishment of forest land enhancement program.
Sec. 8003. Enhanced community fire protection.
Subtitle B--Amendments to Other Laws
Sec. 8101. Sustainable forestry outreach initiative; renewable resources
extension activities.
Sec. 8102. Office of International Forestry.
Subtitle C--Miscellaneous Provisions
Sec. 8201. McIntire-Stennis cooperative forestry research program.
TITLE IX--ENERGY
Sec. 9002. Federal procurement of biobased products.
Sec. 9003. Biorefinery development grants.
Sec. 9004. Biodiesel fuel education program.
Sec. 9005. Energy audit and renewable energy development program.
Sec. 9006. Renewable energy systems and energy efficiency
improvements.
Sec. 9007. Hydrogen and fuel cell technologies.
Sec. 9008. Biomass research and development.
Sec. 9009. Cooperative research and extension projects.
Sec. 9010. Continuation of bioenergy program.
TITLE X--MISCELLANEOUS
Subtitle A--Crop Insurance
Sec. 10001. Equal crop insurance treatment of potatoes and sweet
potatoes.
Sec. 10002. Continuous coverage.
Sec. 10003. Quality loss adjustment procedures.
Sec. 10004. Adjusted gross revenue insurance pilot program.
Sec. 10005. Sense of Congress on expansion of crop insurance
coverage.
Sec. 10006. Report on specialty crop insurance.
Subtitle B--Disaster Assistance
Sec. 10101. Reference to sea grass and sea oats as crops covered by
noninsured crop disaster assistance program.
Sec. 10102. Emergency grants to assist low-income migrant and seasonal
farmworkers.
Sec. 10103. Emergency loans for seed producers.
Sec. 10104. Assistance for livestock producers.
Sec. 10105. Market loss assistance for apple producers.
Sec. 10106. Market loss assistance for onion producers.
Sec. 10107. Commercial fisheries failure.
Sec. 10108. Study of feasibility of producer indemnification from
Government-caused disasters.
Subtitle C--Tree Assistance Program
Sec. 10204. Limitations on assistance.
Sec. 10205. Authorization of appropriations.
Subtitle D--Animal Welfare
Sec. 10301. Definition of animal under the Animal Welfare Act.
Sec. 10302. Prohibition on interstate movement of animals for animal
fighting.
Sec. 10303. Penalties and foreign commerce provisions of the Animal
Welfare Act.
Sec. 10304. Report on rats, mice, and birds.
Sec. 10305. Enforcement of Humane Methods of Slaughter Act of
1958.
Subtitle E--Animal Health Protection
Sec. 10404. Restriction on importation or entry.
Sec. 10406. Interstate movement.
Sec. 10407. Seizure, quarantine, and disposal.
Sec. 10408. Inspections, seizures, and warrants.
Sec. 10409. Detection, control, and eradication of diseases and
pests.
Sec. 10410. Veterinary accreditation program.
Sec. 10412. Reimbursable agreements.
Sec. 10413. Administration and claims.
Sec. 10416. Regulations and orders.
Sec. 10417. Authorization of appropriations.
Sec. 10418. Repeals and conforming amendments.
Subtitle F--Livestock
Sec. 10501. Transportation of poultry and other animals.
Sec. 10502. Swine contractors.
Sec. 10503. Right to discuss terms of contract.
Sec. 10504. Veterinary training.
Sec. 10505. Pseudorabies eradication program.
Subtitle G--Specialty Crops
Sec. 10601. Marketing orders for caneberries.
Sec. 10602. Availability of section 32 funds.
Sec. 10603. Purchase of specialty crops.
Sec. 10604. Protection for purchasers of farm products.
Sec. 10605. Farmers' market promotion program.
Sec. 10606. National organic certification cost-share program.
Sec. 10607. Exemption of certified organic products from
assessments.
Sec. 10608. Cranberry acreage reserve program.
Subtitle H--Administration
Sec. 10701. Initial rate of basic pay for employees of county
committees.
Sec. 10702. Commodity Futures Trading Commission pay
comparability.
Sec. 10703. Overtime and holiday pay.
Sec. 10704. Assistant Secretary of Agriculture for Civil Rights.
Sec. 10705. Operation of Graduate School of Department of
Agriculture.
Sec. 10706. Implementation funding and information management.
Sec. 10707. Outreach and assistance for socially disadvantaged farmers
and ranchers.
Sec. 10708. Transparency and accountability for socially disadvantaged
farmers and ranchers; public disclosure requirements for county committee
elections.
Subtitle I--General Provisions
Sec. 10801. Cotton classification services.
Sec. 10802. Program of public education regarding use of biotechnology
in producing food for human consumption.
Sec. 10803. Chino Dairy Preserve Project.
Sec. 10804. Grazinglands Research Laboratory.
Sec. 10805. Food and Agricultural Policy Research Institute.
Sec. 10806. Market names for catfish and ginseng.
Sec. 10807. Food Safety Commission.
Sec. 10808. Pasteurization.
Sec. 10809. Rulemaking on labeling of irradiated food; certain
petitions.
Sec. 10810. Penalties for violations of Plant Protection Act.
Sec. 10811. Preclearance quarantine inspections.
Sec. 10812. Connecticut River Atlantic Salmon Commission.
Sec. 10813. Pine Point School.
Sec. 10814. 7-month extension of chapter 12 of title 11 of the United
States Code.
Sec. 10815. Practices involving nonambulatory livestock.
Sec. 10816. Country of origin labeling.
Subtitle J--Miscellaneous Studies and Reports
Sec. 10901. Report on specialty crop purchases.
Sec. 10902. Report on pouched and canned salmon.
Sec. 10903. Study on updating yields.
Sec. 10904. Report on effect of farm program payments.
Sec. 10905. Chiloquin Dam fish passage feasibility study.
Sec. 10906. Report on geographically disadvantaged farmers and
ranchers.
Sec. 10907. Studies on agricultural research and technology.
Sec. 10908. Report on tobacco settlement agreement.
Sec. 10909. Report on sale and use of pesticides for agricultural
uses.
Sec. 10910. Review of operation of agricultural and natural resource
programs on tribal trust land.
TITLE I--COMMODITY PROGRAMS
SEC. 1001. DEFINITIONS.
In this title (other than subtitle C):
(1) AGRICULTURAL ACT OF 1949- 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 of the Federal Agriculture Improvement and
Reform Act of 1996 (7 U.S.C. 7301).
(2) BASE ACRES- The term `base acres', with respect to a covered
commodity on a farm, means the number of acres established under section
1101 with respect to the covered commodity on the election made by the owner
of the farm under subsection (a) of such section.
(3) COUNTER-CYCLICAL PAYMENT- The term `counter-cyclical payment' means
a payment made to producers on a farm under section 1104.
(4) COVERED COMMODITY- The term `covered commodity' means wheat, corn,
grain sorghum, barley, oats, upland cotton, rice, soybeans, and other
oilseeds.
(5) DIRECT PAYMENT- The term `direct payment' means a payment made to
producers on a farm under section 1103.
(6) EFFECTIVE PRICE- The term `effective price', with respect to a
covered commodity for a crop year, means the price calculated by the
Secretary under section 1104 to determine whether counter-cyclical payments
are required to be made for that crop year.
(7) 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.
(8) LOAN COMMODITY- The term `loan commodity' means wheat, corn, grain
sorghum, barley, oats, upland cotton, extra long staple cotton, rice,
soybeans, other oilseeds, wool, mohair, honey, dry peas, lentils, and small
chickpeas.
(9) OTHER OILSEED- The term `other oilseed' means a crop of sunflower
seed, rapeseed, canola, safflower, flaxseed, mustard seed, or, if designated
by the Secretary, another oilseed.
(10) PAYMENT ACRES- The term `payment acres' means 85 percent of the
base acres of a covered commodity on a farm, as established under section
1101, on which direct payments and counter-cyclical payments are made.
(A) IN GENERAL- The term `payment yield' means the yield established
under section 1102 for a farm for a covered commodity.
(B) UPDATED PAYMENT YIELD- The term `updated payment yield' means the
payment yield elected by the owner of a farm under section 1102(e) to be
used in calculating the counter-cyclical payments for the farm.
(12) PRODUCER- The term `producer' means an owner, operator, landlord,
tenant, or sharecropper that shares in the risk of producing a crop and is
entitled to share in the crop available for marketing from the farm, or
would have shared had the crop been produced. 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 and shall ensure that
program requirements do not adversely affect the ability of the grower to
receive a payment under this title.
(13) SECRETARY- The term `Secretary' means the Secretary of
Agriculture.
(14) STATE- The term `State' means each of the several States of the
United States, the District of Columbia, the Commonwealth of Puerto Rico,
and any other territory or possession of the United States.
(15) TARGET PRICE- The term `target price' means the price per bushel
(or other appropriate unit in the case of upland cotton, rice, and other
oilseeds) of a covered commodity used to determine the payment rate for
counter-cyclical payments.
(16) UNITED STATES- The term `United States', when used in a
geographical sense, means all of the States.
Subtitle A--Direct Payments and Counter-Cyclical Payments
SEC. 1101. ESTABLISHMENT OF BASE ACRES AND PAYMENT ACRES FOR A FARM.
(a) ELECTION BY OWNER OF BASE ACRES CALCULATION METHOD-
(1) ALTERNATIVE CALCULATION METHODS- For the purpose of making direct
payments and counter-cyclical payments with respect to a farm, the Secretary
shall give an owner of the farm an opportunity to elect 1 of the following
as the method by which the base acres of all covered commodities on the farm
are to be determined:
(A) Subject to paragraphs (3) and (4), the 4-year average of the
following:
(i) Acreage planted on the farm to covered commodities for harvest,
grazing, haying, silage, or other similar purposes for the 1998 through
2001 crop years.
(ii) Any acreage on the farm that the producers were prevented from
planting during the 1998 through 2001 crop years to covered commodities
because of drought, flood, or other natural disaster, or other condition
beyond the control of the producers, as determined by the
Secretary.
(B) Subject to paragraph (3), the sum of the following:
(i) The contract acreage (as defined in section 102 of the Federal
Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7202)) used by
the Secretary to calculate the fiscal year 2002 payment authorized under
section 114 of such Act (7 U.S.C. 7214) for the covered commodities on
the farm.
(ii) The 4-year average of eligible oilseed acreage on the farm for
the 1998 through 2001 crop years, as determined by the Secretary under
paragraph (2).
(2) ELIGIBLE OILSEED ACREAGE-
(A) CALCULATION- For purposes of paragraph (1)(B)(ii), the eligible
acreage for each oilseed on a farm during each of the 1998 through 2001
crop years shall be determined in the manner provided in paragraph (1)(A),
except that the total acreage for all oilseeds on the farm for a crop year
may not exceed the difference between--
(i) the total acreage determined under paragraph (1)(A) for all
covered commodities for that crop year; and
(ii) the total contract acreage determined under paragraph
(1)(B)(i).
(B) EFFECT OF NEGATIVE NUMBER- If the subtraction performed under
subparagraph (A) results in a negative number, the eligible oilseed
acreage on the farm for that crop year shall be zero for purposes of
determining the 4-year average.
(C) OFFSET OF CONTRACT ACREAGE- The owner of a farm may increase the
eligible acreage for an oilseed on the farm by reducing the contract
acreage determined under paragraph (1)(B)(i) for 1 or more covered
commodities on an acre-for-acre basis, except that the total base acreage
for each oilseed on the farm may not exceed the 4-year average of each
oilseed determined under paragraph (1)(B)(ii).
(3) INCLUSION OF ALL 4 YEARS IN AVERAGE- For the purpose of determining
a 4-year acreage average under this subsection for a farm, the Secretary
shall not exclude any crop year in which a covered commodity was not
planted.
(4) TREATMENT OF MULTIPLE PLANTING OR PREVENTED PLANTING- For the
purpose of determining under paragraph (1)(A) the acreage on a farm that
producers planted or were prevented from planting during the 1998 through
2001 crop years to covered commodities, if the acreage that was planted or
prevented from being planted was devoted to another covered commodity in the
same crop year (other than a covered commodity produced under an established
practice of double cropping), the owner may elect the commodity to be used
for that crop year in determining the 4-year average, but may not include
both the initial commodity and the subsequent commodity.
(b) SINGLE ELECTION; TIME FOR ELECTION-
(1) NOTICE OF ELECTION OPPORTUNITY- As soon as practicable after the
date of enactment of this Act, the Secretary shall provide notice to owners
of farms regarding their opportunity to make the election described in
subsection (a). The notice shall include the following:
(A) Notice that the opportunity of an owner to make the election is
being provided only once.
(B) Information regarding the manner in which the election must be
made and the time periods and manner in which notice of the election must
be submitted to the Secretary.
(2) ELECTION DEADLINE- Within the time period and in the manner
prescribed pursuant to paragraph (1), the owner of a farm shall submit to
the Secretary notice of the election made by the owner under subsection
(a).
(c) EFFECT OF FAILURE TO MAKE ELECTION- If the owner of a farm fails to
make the election under subsection (a) or fails to timely notify the Secretary
of the election made, as required by subsection (b), the owner shall be deemed
to have made the election described in subsection (a)(1)(B) to determine base
acres for all covered commodities on the farm.
(d) APPLICATION OF ELECTION TO ALL COVERED COMMODITIES- The election made
under subparagraph (A) or (B) of subsection (a)(1), or deemed to be made under
subsection (c), with respect to a farm shall apply to all of the covered
commodities on the farm.
(e) TREATMENT OF CONSERVATION RESERVE CONTRACT ACREAGE-
(1) IN GENERAL- The Secretary shall provide for an adjustment, as
appropriate, in the base acres for covered commodities for a farm whenever
either of the following circumstances occurs:
(A) A conservation reserve contract entered into under section 1231 of
the Food Security Act of 1985 (16 U.S.C. 3831) with respect to the farm
expires or is voluntarily terminated.
(B) Cropland is released from coverage under a conservation reserve
contract by the Secretary.
(2) SPECIAL PAYMENT RULES- For the crop year in which a base acres
adjustment under paragraph (1) is first made, the owner of the farm shall
elect to receive either direct payments and counter-cyclical payments with
respect to the acreage added to the farm under this subsection or a prorated
payment under the conservation reserve contract, but not both.
(f) PAYMENT ACRES- The payment acres for a covered commodity on a farm
shall be equal to 85 percent of the base acres for the covered commodity.
(g) PREVENTION OF EXCESS BASE ACRES-
(1) REQUIRED REDUCTION- If the sum of the base acres for a farm,
together with the acreage described in paragraph (2), exceeds the actual
cropland acreage of the farm, the Secretary shall reduce the base acres for
1 or more covered commodities for the farm or the base acres for peanuts for
the farm under subtitle C so that the sum of the base acres and acreage
described in paragraph (2) does not exceed the actual cropland acreage of
the farm.
(2) OTHER ACREAGE- For purposes of paragraph (1), the Secretary shall
include the following:
(A) Any base acres for peanuts for the farm under subtitle C.
(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.).
(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) SELECTION OF ACRES- The Secretary shall give the owner of the farm
the opportunity to select the base acres or the base acres for peanuts for
the farm under subtitle C against which the reduction required by paragraph
(1) will be made.
(4) EXCEPTION FOR DOUBLE-CROPPED ACREAGE- In applying paragraph (1), the
Secretary shall make an exception in the case of double cropping, as
determined by the Secretary.
(5) COORDINATED APPLICATION OF REQUIREMENTS- The Secretary shall take
into account section 1302(f) when applying the requirements of this
subsection.
(h) PERMANENT REDUCTION IN BASE ACRES- The owner of a farm may reduce, at
any time, the base acres for any covered commodity for the farm. The reduction
shall be permanent and made in the manner prescribed by the Secretary.
SEC. 1102. ESTABLISHMENT OF PAYMENT YIELD.
(a) ESTABLISHMENT AND PURPOSE- For the purpose of making direct payments
and counter-cyclical payments under this subtitle, the Secretary shall provide
for the establishment of a payment yield for each farm for each covered
commodity in accordance with this section.
(b) USE OF FARM PROGRAM PAYMENT YIELD- Except as otherwise provided in
this section, the payment yield for each of the 2002 through 2007 crops of a
covered commodity for a farm shall be the farm program payment yield
established for the 1995 crop of the covered 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.
(c) FARMS WITHOUT FARM PROGRAM PAYMENT YIELD- In the case of a farm for
which a farm program payment yield is unavailable for a covered commodity
(other than soybeans or other oilseeds), the Secretary shall establish an
appropriate payment yield for the covered commodity on the farm taking into
consideration the farm program payment yields applicable to the commodity
under subsection (b) for similar farms, but before the yields for the similar
farms are updated as provided in subsection (e).
(d) PAYMENT YIELDS FOR OILSEEDS-
(1) DETERMINATION OF AVERAGE YIELD- In the case of soybeans and each
other oilseed, the Secretary shall determine the average yield per planted
acre for the oilseed on a farm for the 1998 through 2001 crop years,
excluding any crop year in which the acreage planted to the oilseed was
zero.
(2) ADJUSTMENT FOR PAYMENT YIELD- The payment yield for a farm for an
oilseed shall be equal to the product of the following:
(A) The average yield for the oilseed determined under paragraph
(1).
(B) The ratio resulting from dividing the national average yield for
the oilseed for the 1981 through 1985 crops by the national average yield
for the oilseed for the 1998 through 2001 crops.
(3) USE OF PARTIAL COUNTY AVERAGE YIELD- If the yield per planted acre
for a crop of an oilseed for a farm for any of the 1998 through 2001 crop
years was less than 75 percent of the county yield for that oilseed, the
Secretary shall assign a yield for that crop year equal to 75 percent of the
county yield for the purpose of determining the average under paragraph
(1).
(e) OPPORTUNITY TO PARTIALLY UPDATE YIELDS USED TO DETERMINE
COUNTER-CYCLICAL PAYMENTS-
(1) ELECTION TO UPDATE- If the owner of a farm elects to use the base
acres calculation method described in section 1101(a)(1)(A), the owner shall
also have a 1-time opportunity to elect to use 1 of the methods described in
paragraph (3) to partially update the payment yields that would otherwise be
used in calculating any counter-cyclical payments for covered commodities on
the farm.
(2) TIME FOR ELECTION- The election under paragraph (1) shall be made at
the same time and in the same manner as the Secretary prescribes for the
election required under section 1101.
(3) METHODS OF UPDATING YIELDS- If the owner of a farm elects to update
yields under this subsection, the payment yield for a covered commodity on
the farm, for the purpose of calculating counter-cyclical payments only,
shall be equal to the yield determined using either of the following:
(A) The sum of the following:
(i) The payment yield applicable for direct payments for the covered
commodity on the farm.
(ii) 70 percent of the difference between--
(I) the average yield per planted acre for the crop of the covered
commodity on the farm for the 1998 through 2001 crop years, as
determined by the Secretary, excluding any crop year in which the
acreage planted to the crop of the covered commodity was zero;
and
(II) the payment yield applicable for direct payments for the
covered commodity on the farm.
(B) 93.5 percent of the average of the yield per planted acre for the
crop of the covered commodity on the farm for the 1998 through 2001 crop
years, as determined by the Secretary, excluding any crop year in which
the acreage planted to the crop of the covered commodity was
zero.
(4) USE OF PARTIAL COUNTY AVERAGE YIELD- If the yield per planted acre
for a crop of the covered commodity for a farm for any of the 1998 through
2001 crop years was less than 75 percent of the county yield for that
commodity, the Secretary shall assign a yield for that crop year equal to 75
percent of the county yield for the purpose of determining the average yield
under paragraph (3).
(5) APPLICATION OF ELECTION AND METHOD TO ALL COVERED COMMODITIES- The
owner of a farm may not elect the method described in paragraph (3)(A) for 1
covered commodity on the farm and the method described in paragraph (3)(B)
for other covered commodities on the farm.
SEC. 1103. AVAILABILITY OF DIRECT PAYMENTS.
(a) PAYMENT REQUIRED- For each of the 2002 through 2007 crop years of each
covered commodity, the Secretary shall make direct payments to producers on
farms for which payment yields and base acres are established.
(b) PAYMENT RATE- The payment rates used to make direct payments with
respect to covered commodities for a crop year are as follows:
(1) Wheat, $0.52 per bushel.
(2) Corn, $0.28 per bushel.
(3) Grain sorghum, $0.35 per bushel.
(4) Barley, $0.24 per bushel.
(5) Oats, $0.024 per bushel.
(6) Upland cotton, $0.0667 per pound.
(7) Rice, $2.35 per hundredweight.
(8) Soybeans, $0.44 per bushel.
(9) Other oilseeds, $0.0080 per pound.
(c) PAYMENT AMOUNT- The amount of the direct payment to be paid to the
producers on a farm for a covered commodity for a crop year shall be equal to
the product of the following:
(1) The payment rate specified in subsection (b).
(2) The payment acres of the covered commodity on the farm.
(3) The payment yield for the covered commodity for the farm.
(1) IN GENERAL- The Secretary shall make direct payments--
(A) in the case of the 2002 crop year, as soon as practicable after
the date of enactment of this Act; and
(B) in the case of each of the 2003 through 2007 crop years, not
before October 1 of the calendar year in which the crop of the covered
commodity is harvested.
(2) ADVANCE PAYMENTS- At the option of the producers on a farm, up to 50
percent of the direct payment for a covered commodity for any of the 2003
through 2007 crop years shall be paid to the producers in advance. The
producers shall select the month within which the advance payment for a crop
year will be made. The month selected may be any month during the period
beginning on December 1 of the calendar year before the calendar year in
which the crop of the covered commodity is harvested through the month
within which the direct payment would otherwise be made. The producers may
change the selected month for a subsequent advance payment by providing
advance notice to the Secretary.
(3) REPAYMENT OF ADVANCE PAYMENTS- If a producer on a farm that receives
an advance direct payment for a crop year ceases to be a producer on that
farm, or the extent to which the producer shares in the risk of producing a
crop changes, before the date the remainder of the direct payment is made,
the producer shall be responsible for repaying the Secretary the applicable
amount of the advance payment, as determined by the Secretary.
SEC. 1104. AVAILABILITY OF COUNTER-CYCLICAL PAYMENTS.
(a) PAYMENT REQUIRED- For each of the 2002 through 2007 crop years for
each covered commodity, the Secretary shall make counter-cyclical payments to
producers on farms for which payment yields and base acres are established
with respect to the covered commodity if the Secretary determines that the
effective price for the covered commodity is less than the target price for
the covered commodity.
(b) EFFECTIVE PRICE- For purposes of subsection (a), the effective price
for a covered commodity is equal to the sum of the following:
(1) The higher of the following:
(A) The national average market price received by producers during the
12-month marketing year for the covered commodity, as determined by the
Secretary.
(B) The national average loan rate for a marketing assistance loan for
the covered commodity in effect for the applicable period under subtitle
B.
(2) The payment rate in effect for the covered commodity under section
1103 for the purpose of making direct payments with respect to the covered
commodity.
(1) 2002 AND 2003 CROP YEARS- For purposes of the 2002 and 2003 crop
years, the target prices for covered commodities shall be as follows:
(A) Wheat, $3.86 per bushel.
(B) Corn, $2.60 per bushel.
(C) Grain sorghum, $2.54 per bushel.
(D) Barley, $2.21 per bushel.
(E) Oats, $1.40 per bushel.
(F) Upland cotton, $0.7240 per pound.
(G) Rice, $10.50 per hundredweight.
(H) Soybeans, $5.80 per bushel.
(I) Other oilseeds, $0.0980 per pound.
(2) SUBSEQUENT CROP YEARS- For purposes of each of the 2004 through 2007
crop years, the target prices for covered commodities shall be as
follows:
(A) Wheat, $3.92 per bushel.
(B) Corn, $2.63 per bushel.
(C) Grain sorghum, $2.57 per bushel.
(D) Barley, $2.24 per bushel.
(E) Oats, $1.44 per bushel.
(F) Upland cotton, $0.7240 per pound.
(G) Rice, $10.50 per hundredweight.
(H) Soybeans, $5.80 per bushel.
(I) Other oilseeds, $0.1010 per pound.
(d) PAYMENT RATE- The payment rate used to make counter-cyclical payments
with respect to a covered commodity for a crop year shall be equal to the
difference between--
(1) the target price for the covered commodity; and
(2) the effective price determined under subsection (b) for the covered
commodity.
(e) PAYMENT AMOUNT- If counter-cyclical payments are required to be paid
for any of the 2002 through 2007 crop years of a covered commodity, the amount
of the counter-cyclical payment to be paid to the producers on a farm for that
crop year shall be equal to the product of the following:
(1) The payment rate specified in subsection (d).
(2) The payment acres of the covered commodity on the farm.
(3) The payment yield or updated payment yield for the farm, depending
on the election of the owner of the farm under section 1102.
(1) GENERAL RULE- If the Secretary determines under subsection (a) that
counter-cyclical payments are required to be made under this section for the
crop of a covered commodity, the Secretary shall make the counter-cyclical
payments for the crop as soon as practicable after the end of the 12-month
marketing year for the covered commodity.
(2) AVAILABILITY OF PARTIAL PAYMENTS- If, before the end of the 12-month
marketing year for a covered commodity, the Secretary estimates that
counter-cyclical payments will be required for the crop of the covered
commodity, the Secretary shall give producers on a farm the option to
receive partial payments of the counter-cyclical payment projected to be
made for that crop of the covered commodity.
(3) TIME FOR PARTIAL PAYMENTS-
(A) 2002 THROUGH 2006 CROP YEARS- When the Secretary makes partial
payments available under paragraph (2) for a covered commodity for any of
the 2002 through 2006 crop years--
(i) the first partial payment for the crop year shall be made not
earlier than October 1, and, to the maximum extent practicable, not
later than October 31, of the calendar year in which the crop of the
covered commodity is harvested;
(ii) the second partial payment shall be made not earlier than
February 1 of the next calendar year; and
(iii) the final partial payment shall be made as soon as practicable
after the end of the 12-month marketing year for the covered
commodity.
(B) 2007 CROP YEAR- When the Secretary makes partial payments
available for a covered commodity for the 2007 crop year--
(i) the first partial payment shall be made after completion of the
first 6 months of the marketing year for the covered commodity;
and
(ii) the final partial payment shall be made as soon as practicable
after the end of the 12-month marketing year for the covered
commodity.
(4) AMOUNT OF PARTIAL PAYMENTS-
(A) 2002 THROUGH 2006 CROP YEARS-
(i) FIRST PARTIAL PAYMENT- For each of the 2002 through 2006 crop
years of a covered commodity, the first partial payment under paragraph
(3) to the producers on a farm may not exceed 35 percent of the
projected counter-cyclical payment for the covered commodity for the
crop year, as determined by the Secretary.
(ii) SECOND PARTIAL PAYMENT- The second partial payment for a
covered commodity for a crop year may not exceed the difference
between--
(I) 70 percent of the projected counter-cyclical payment
(including any revision thereof) for the crop of the covered
commodity; and
(II) the amount of the payment made under clause
(i).
(iii) FINAL PAYMENT- The final payment for a covered commodity for a
crop year shall be equal to the difference between--
(I) the actual counter-cyclical payment to be made to the
producers for the covered commodity for that crop year;
and
(II) the amount of the partial payments made to the producers
under clauses (i) and (ii) for that crop year.
(i) FIRST PARTIAL PAYMENT- For the 2007 crop year, the first partial
payment under paragraph (3) to the producers on a farm may not exceed 40
percent of the projected counter-cyclical payment for the covered
commodity for the crop year, as determined by the Secretary.
(ii) FINAL PAYMENT- The final payment for the 2007 crop year shall
be equal to the difference between--
(I) the actual counter-cyclical payment to be made to the
producers for the covered commodity for that crop year;
and
(II) the amount of the partial payment made to the producers under
clause (i).
(5) REPAYMENT- The producers on a farm that receive a partial payment
under this subsection for a crop year shall repay to the Secretary the
amount, if any, by which the total of the partial payments exceed the actual
counter-cyclical payment to be made for the covered commodity for that crop
year.
SEC. 1105. PRODUCER AGREEMENT REQUIRED AS CONDITION OF PROVISION OF DIRECT
PAYMENTS AND COUNTER-CYCLICAL PAYMENTS.
(a) COMPLIANCE WITH CERTAIN REQUIREMENTS-
(1) REQUIREMENTS- Before the producers on a farm may receive direct
payments or counter-cyclical payments with respect to the farm, the
producers shall agree, during the crop year for which the payments are made
and in exchange for the payments--
(A) to comply with applicable conservation requirements under subtitle
B of title XII of the Food Security Act of 1985 (16 U.S.C. 3811 et
seq.);
(B) to comply with applicable wetland protection requirements under
subtitle C of title XII of the Act (16 U.S.C. 3821 et seq.);
(C) to comply with the planting flexibility requirements of section
1106;
(D) to use the land on the farm, in a quantity equal to the
attributable base acres for the farm and any base acres for peanuts for
the farm under subtitle C for an agricultural or conserving use, and not
for a nonagricultural commercial or industrial use, as determined by the
Secretary; and
(E) to effectively control noxious weeds and otherwise maintain the
land in accordance with sound agricultural practices, as determined by the
Secretary, if the agricultural or conserving use involves the
noncultivation of any portion of the land referred to in subparagraph
(D).
(2) COMPLIANCE- The Secretary may issue such rules as the Secretary
considers necessary to ensure producer compliance with the requirements of
paragraph (1).
(3) MODIFICATION- At the request of the transferee or owner, the
Secretary may modify the requirements of this subsection if the
modifications are consistent with the objectives of this subsection, as
determined by the Secretary.
(b) TRANSFER OR CHANGE OF INTEREST IN FARM-
(1) TERMINATION- Except as provided in paragraph (2), a transfer of (or
change in) the interest of the producers on a farm in base acres for which
direct payments or counter-cyclical payments are made shall result in the
termination of the payments with respect to the base acres, unless the
transferee or owner of the acreage agrees to assume all obligations under
subsection (a). The termination shall take effect on the date determined by
the Secretary.
(2) EXCEPTION- If a 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 rules issued by the Secretary.
(c) ACREAGE REPORTS- As a condition on the receipt of any benefits under
this subtitle or subtitle B, the Secretary shall require producers on a farm
to submit to the Secretary annual acreage reports with respect to all cropland
on the farm.
(d) TENANTS AND SHARECROPPERS- In carrying out this subtitle, the
Secretary shall provide adequate safeguards to protect the interests of
tenants and sharecroppers.
(e) SHARING OF PAYMENTS- The Secretary shall provide for the sharing of
direct payments and counter-cyclical payments among the producers on a farm on
a fair and equitable basis.
SEC. 1106. PLANTING FLEXIBILITY.
(a) PERMITTED CROPS- Subject to subsection (b), any commodity or crop may
be planted on base acres on a farm.
(b) LIMITATIONS REGARDING CERTAIN COMMODITIES-
(1) GENERAL LIMITATION- The planting of an agricultural commodity
specified in paragraph (3) shall be prohibited on base acres unless the
commodity, if planted, is destroyed before harvest.
(2) TREATMENT OF TREES AND OTHER PERENNIALS- The planting of an
agricultural commodity specified in paragraph (3) that is produced on a tree
or other perennial plant shall be prohibited on base acres.
(3) COVERED AGRICULTURAL COMMODITIES- Paragraphs (1) and (2) apply to
the following agricultural commodities:
(B) Vegetables (other than lentils, mung beans, and dry
peas).
(c) EXCEPTIONS- Paragraphs (1) and (2) of subsection (b) shall not limit
the planting of an agricultural commodity specified in paragraph (3) of that
subsection--
(1) in any region in which there is a history of double-cropping of
covered commodities with agricultural commodities specified in subsection
(b)(3), as determined by the Secretary, in which case the double-cropping
shall be permitted;
(2) on a farm that the Secretary determines has a history of planting
agricultural commodities specified in subsection (b)(3) on base acres,
except that direct payments and counter-cyclical payments shall be reduced
by an acre for each acre planted to such an agricultural commodity; or
(3) by the producers on a farm that the Secretary determines has an
established planting history of a specific agricultural commodity specified
in subsection (b)(3), except that--
(A) the quantity planted may not exceed the average annual planting
history of such agricultural commodity by the producers on the farm in the
1991 through 1995 or 1998 through 2001 crop years (excluding any crop year
in which no plantings were made), as determined by the Secretary;
and
(B) direct payments and counter-cyclical payments shall be reduced by
an acre for each acre planted to such agricultural commodity.
(d) SPECIAL RULE FOR 2002 CROP YEAR- For the 2002 crop year only, if the
calculation of base acres under section 1101(a) results in total base acres
for a farm in excess of the contract acreage (as defined in section 102 of the
Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7202)) for
the farm used to calculate the fiscal year 2002 payment authorized under
section 114 of such Act (7 U.S.C. 7214), paragraphs (1) and (2) of subsection
(b) shall not limit the harvesting of an agricultural commodity specified in
paragraph (3) of that subsection on the excess base acres, except that direct
payments and counter-cyclical payments for the 2002 crop year shall be reduced
by an acre for each acre of the excess base acres planted to such an
agricultural commodity.
SEC. 1107. RELATION TO REMAINING PAYMENT AUTHORITY UNDER PRODUCTION
FLEXIBILITY CONTRACTS.
(a) TERMINATION OF SUPERSEDED PAYMENT AUTHORITY- Notwithstanding section
113(a)(7) of the Federal Agriculture Improvement and Reform Act of 1996 (7
U.S.C. 7213(a)(7)) or any other provision of law, the Secretary shall not make
payments for fiscal year 2002 after the date of enactment of this Act under a
production flexibility contract entered into under section 111 of that Act (7
U.S.C. 7211) unless requested by the producer that is a party to the
contract.
(b) CONTRACT PAYMENTS MADE BEFORE ENACTMENT- If a producer receives all or
any portion of the payment authorized for fiscal year 2002 under a production
flexibility contract, the Secretary shall reduce the amount of the direct
payment otherwise due the producer for the 2002 crop year under section 1103
by the amount of the fiscal year 2002 payment received by the producer under
the production flexibility contract.
SEC. 1108. PERIOD OF EFFECTIVENESS.
This subtitle shall be effective beginning with the 2002 crop year of each
covered commodity through the 2007 crop year.
Subtitle B--Marketing Assistance Loans and Loan Deficiency
Payments
SEC. 1201. AVAILABILITY OF NONRECOURSE MARKETING ASSISTANCE LOANS FOR LOAN
COMMODITIES.
(a) NONRECOURSE LOANS AVAILABLE-
(1) AVAILABILITY- For each of the 2002 through 2007 crops of each loan
commodity, the Secretary shall make available to producers on a farm
nonrecourse marketing assistance loans for loan commodities produced on the
farm.
(2) TERMS AND CONDITIONS- The marketing assistance loans shall be made
under terms and conditions that are prescribed by the Secretary and at the
loan rate established under section 1202 for the loan commodity.
(b) ELIGIBLE PRODUCTION- The producers on a farm shall be eligible for a
marketing assistance loan under subsection (a) for any quantity of a loan
commodity produced on the farm.
(c) TREATMENT OF CERTAIN COMMINGLED COMMODITIES- In carrying out this
subtitle, the Secretary shall make loans to producers on a farm that would be
eligible to obtain a marketing assistance loan, but for the fact the loan
commodity owned by the producers on the farm commingled with loan commodities
of other producers in facilities unlicensed for the storage of agricultural
commodities by the Secretary or a State licensing authority, if the producers
obtaining the loan agree to immediately redeem the loan collateral in
accordance with section 166 of the Federal Agriculture Improvement and Reform
Act of 1996 (7 U.S.C. 7286).
(d) COMPLIANCE WITH CONSERVATION AND WETLANDS REQUIREMENTS- As a condition
of the receipt of a marketing assistance loan under subsection (a), the
producer shall comply with applicable conservation requirements under subtitle
B of title XII of the Food Security Act of 1985 (16 U.S.C. 3811 et seq.) and
applicable wetland protection requirements under subtitle C of title XII of
the Act (16 U.S.C. 3821 et seq.) during the term of the loan.
(e) TERMINATION OF SUPERSEDED LOAN AUTHORITY- Notwithstanding section 131
of the Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7231),
nonrecourse marketing assistance loans shall not be made for the 2002 crop of
loan commodities under subtitle C of title I of such Act.
SEC. 1202. LOAN RATES FOR NONRECOURSE MARKETING ASSISTANCE LOANS.
(a) 2002 AND 2003 CROP YEARS- For purposes of the 2002 and 2003 crop
years, the loan rate for a marketing assistance loan under section 1201 for a
loan commodity shall be equal to the following:
(1) In the case of wheat, $2.80 per bushel.
(2) In the case of corn, $1.98 per bushel.
(3) In the case of grain sorghum, $1.98 per bushel.
(4) In the case of barley, $1.88 per bushel.
(5) In the case of oats, $1.35 per bushel.
(6) In the case of upland cotton, $0.52 per pound.
(7) In the case of extra long staple cotton, $0.7977 per pound.
(8) In the case of rice, $6.50 per hundredweight.
(9) In the case of soybeans, $5.00 per bushel.
(10) In the case of other oilseeds, $0.0960 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, $4.20 per pound.
(14) In the case of honey, $0.60 per pound.
(15) In the case of dry peas, $6.33 per hundredweight.
(16) In the case of lentils, $11.94 per hundredweight.
(17) In the case of small chickpeas, $7.56 per hundredweight.
(b) 2004 THROUGH 2007 CROP YEARS- For purposes of the 2004 through 2007
crop years, the loan rate for a marketing assistance loan under section 1201
for a loan commodity shall be equal to the following:
(1) In the case of wheat, $2.75 per bushel.
(2) In the case of corn, $1.95 per bushel.
(3) In the case of grain sorghum, $1.95 per bushel.
(4) In the case of barley, $1.85 per bushel.
(5) In the case of oats, $1.33 per bushel.
(6) In the case of upland cotton, $0.52 per pound.
(7) In the case of extra long staple cotton, $0.7977 per pound.
(8) In the case of rice, $6.50 per hundredweight.
(9) In the case of soybeans, $5.00 per bushel.
(10) In the case of other oilseeds, $0.0930 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, $4.20 per pound.
(14) In the case of honey, $0.60 per pound.
(15) In the case of dry peas, $6.22 per hundredweight.
(16) In the case of lentils, $11.72 per hundredweight.
(17) In the case of small chickpeas, $7.43 per hundredweight.
SEC. 1203. TERM OF LOANS.
(a) TERM OF LOAN- In the case of each loan commodity, a marketing
assistance loan under section 1201 shall have a term of 9 months beginning on
the first day of the first month after the month in which the loan is made.
(b) EXTENSIONS PROHIBITED- The Secretary may not extend the term of a
marketing assistance loan for any loan commodity.
SEC. 1204. REPAYMENT OF LOANS.
(a) GENERAL RULE- The Secretary shall permit the producers on a farm to
repay a marketing assistance loan under section 1201 for a loan commodity
(other than upland cotton, rice, and extra long staple cotton) at a rate that
is the lesser of--
(1) the loan rate established for the commodity under section 1202, plus
interest (determined in accordance with section 163 of the Federal
Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7283)); or
(2) a rate that the Secretary determines will--
(A) minimize potential loan forfeitures;
(B) minimize the accumulation of stocks of the commodity by the
Federal Government;
(C) minimize the cost incurred by the Federal Government in storing
the commodity;
(D) allow the commodity produced in the United States to be marketed
freely and competitively, both domestically and internationally;
and
(E) minimize discrepancies in marketing loan benefits across State
boundaries and across county boundaries.
(b) REPAYMENT RATES FOR UPLAND COTTON AND RICE- The Secretary shall permit
producers to repay a marketing assistance loan under section 1201 for upland
cotton and rice at a rate that is the lesser of--
(1) the loan rate established for the commodity under section 1202, plus
interest (determined in accordance with section 163 of the Federal
Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7283)); or
(2) the prevailing world market price for the commodity (adjusted to
United States quality and location), as determined by the Secretary.
(c) REPAYMENT RATES FOR EXTRA LONG STAPLE COTTON- Repayment of a marketing
assistance loan for extra long staple cotton shall be at the loan rate
established for the commodity under section 1202, plus interest (determined in
accordance with section 163 of the Federal Agriculture Improvement and Reform
Act of 1996 (7 U.S.C. 7283)).
(d) PREVAILING WORLD MARKET PRICE- For purposes of this section and
section 1207, the Secretary shall prescribe by regulation--
(1) a formula to determine the prevailing world market price for upland
cotton and rice, adjusted to United States quality and location; and
(2) a mechanism by which the Secretary shall announce periodically the
prevailing world market price for upland cotton and rice.
(e) ADJUSTMENT OF PREVAILING WORLD MARKET PRICE FOR UPLAND COTTON-
(1) IN GENERAL- During the period beginning on the date of the enactment
of this Act through July 31, 2008, the prevailing world market price for
upland cotton (adjusted to United States quality and location) established
under subsection (d) shall be further adjusted if--
(A) the adjusted prevailing world market price is less than 115
percent of the loan rate for upland cotton established under section 1202,
as determined by the Secretary; and
(B) the Friday through Thursday average price quotation for the
lowest-priced United States growth as quoted for Middling (M) 1 3/32 -inch
cotton delivered C.I.F. Northern Europe is greater than the Friday through
Thursday average price of the 5 lowest-priced growths of upland cotton, as
quoted for Middling (M) 1 3/32 -inch cotton, delivered C.I.F. Northern
Europe (referred to in this section as the `Northern Europe
price').
(2) FURTHER ADJUSTMENT- Except as provided in paragraph (3), the
adjusted prevailing world market price for upland cotton shall be further
adjusted on the basis of some or all of the following data, as
available:
(A) The United States share of world exports.
(B) The current level of cotton export sales and cotton export
shipments.
(C) Other data determined by the Secretary to be relevant in
establishing an accurate prevailing world market price for upland cotton
(adjusted to United States quality and location).
(3) LIMITATION ON FURTHER ADJUSTMENT- The adjustment under paragraph (2)
may not exceed the difference between--
(A) the Friday through Thursday average price for the lowest-priced
United States growth as quoted for Middling 1 3/32 -inch cotton delivered
C.I.F. Northern Europe; and
(B) the Northern Europe price.
(f) GOOD FAITH EXCEPTION TO BENEFICIAL INTEREST REQUIREMENT- For the 2001
crop year only, in the case of the producers on a farm that marketed or
otherwise lost beneficial interest in a loan commodity for which a marketing
assistance loan was made under section 131 of the Federal Agriculture
Improvement and Reform Act of 1996 (7 U.S.C. 7231) before repaying the loan,
the Secretary shall permit the producers to repay the loan at the appropriate
repayment rate that was in effect for the loan commodity under section 134 of
that Act (7 U.S.C. 7234) on the date that the producers lost beneficial
interest, as determined by the Secretary, if the Secretary determines the
producers acted in good faith.
SEC. 1205. LOAN DEFICIENCY PAYMENTS.
(a) AVAILABILITY OF LOAN DEFICIENCY PAYMENTS-
(1) IN GENERAL- Except as provided in subsection (d), the Secretary may
make loan deficiency payments available to producers on a farm that,
although eligible to obtain a marketing assistance loan under section 1201
with respect to a loan commodity, agree to forgo obtaining the loan for the
commodity in return for loan deficiency payments under this section.
(2) UNSHORN PELTS, HAY, AND SILAGE- Nongraded wool in the form of
unshorn pelts and hay and silage derived from a loan commodity are not
eligible for a marketing assistance loan under section 1201. However,
effective for the 2002 through 2007 crop years, the Secretary may make loan
deficiency payments available under this section to producers on a farm that
produce unshorn pelts or hay and silage derived from a loan commodity.
(b) COMPUTATION- A loan deficiency payment for a loan commodity or
commodity referred to in subsection (a)(2) shall be computed by
multiplying--
(1) the payment rate determined under subsection (c) for the commodity;
by
(2) the quantity of the commodity produced by the eligible producers,
excluding any quantity for which the producers obtain a marketing assistance
loan under section 1201.
(1) IN GENERAL- In the case of a loan commodity, the payment rate shall
be the amount by which--
(A) the loan rate established under section 1202 for the loan
commodity; exceeds
(B) the rate at which a marketing assistance loan for the loan
commodity may be repaid under section 1204.
(2) UNSHORN PELTS- In the case of unshorn pelts, the payment rate shall
be the amount by which--
(A) the loan rate established under section 1202 for ungraded wool;
exceeds
(B) the rate at which a marketing assistance loan for ungraded wool
may be repaid under section 1204.
(3) HAY AND SILAGE- In the case of hay or silage derived from a loan
commodity, the payment rate shall be the amount by which--
(A) the loan rate established under section 1202 for the loan
commodity from which the hay or silage is derived; exceeds
(B) the rate at which a marketing assistance loan for the loan
commodity may be repaid under section 1204.
(d) EXCEPTION FOR EXTRA LONG STAPLE COTTON- This section shall not apply
with respect to extra long staple cotton.
(e) EFFECTIVE DATE FOR PAYMENT RATE DETERMINATION- The Secretary shall
determine the amount of the loan deficiency payment to be made under this
section to the producers on a farm with respect to a quantity of a loan
commodity or commodity referred to in subsection (a)(2) using the payment rate
in effect under subsection (c) as of the date the producers request the
payment.
(f) SPECIAL LOAN DEFICIENCY PAYMENT RULES-
(1) FIRST-TIME LOAN COMMODITIES- For the 2002 crop of wool, mohair,
honey, dry peas, lentils and small chickpeas, in the case of producers of
such a crop that would be eligible for a loan deficiency payment under this
section except for the fact that the producers lost beneficial interest in
the crop prior to the date of publication of the regulations implementing
this section, the producers shall be eligible for a loan deficiency payment
as of the date producers marketed or otherwise lost beneficial interest in
the crop, as determined by the Secretary.
(2) 2001 CROP YEAR- Section 135 of the Federal Agriculture Improvement
and Reform Act of 1996 (7 U.S.C. 7235) is amended--
(A) in subsection (a)(2), by striking `2000 crop year' and inserting
`2000 and 2001 crop years'; and
(B) by adding at the end the following:
`(g) EFFECTIVE DATE FOR PAYMENT RATE DETERMINATION- For the 2001 crop
year, the Secretary shall determine the amount of the loan deficiency payment
to be made under this section to the producers on a farm with respect to a
quantity of a loan commodity using the payment rate in effect under subsection
(c) as of the earlier of the following:
`(1) The date on which the producers marketed or otherwise lost
beneficial interest in the crop of the loan commodity, as determined by the
Secretary.
`(2) The date the producers requested the payment.'.
SEC. 1206. PAYMENTS IN LIEU OF LOAN DEFICIENCY PAYMENTS FOR GRAZED
ACREAGE.
(1) IN GENERAL- Effective for the 2002 through 2007 crop years, in the
case of a producer that would be eligible for a loan deficiency payment
under section 1205 for wheat, barley, or oats, but that elects to use
acreage planted to the wheat, barley, or oats for the grazing of livestock,
the Secretary shall make a payment to the producer under this section if the
producer enters into an agreement with the Secretary to forgo any other
harvesting of the wheat, barley, or oats on that acreage.
(2) GRAZING OF TRITICALE ACREAGE- Effective for the 2002 through 2007
crop years, with respect to a producer on a farm that uses acreage planted
to triticale for the grazing of livestock, the Secretary shall make a
payment to the producer under this section if the producer enters into an
agreement with the Secretary to forgo any other harvesting of triticale on
that acreage.
(1) IN GENERAL- The amount of a payment made under this section to a
producer on a farm described in subsection (a)(1) shall be equal to the
amount determined by multiplying--
(A) the loan deficiency payment rate determined under section 1205(c)
in effect, as of the date of the agreement, for the county in which the
farm is located; by
(B) the payment quantity determined by multiplying--
(i) the quantity of the grazed acreage on the farm with respect to
which the producer elects to forgo harvesting of wheat, barley, or oats;
and
(ii) the payment yield in effect for the calculation of direct
payments under subtitle A with respect to that loan commodity on the
farm or, in the case of a farm without a payment yield for that loan
commodity, an appropriate yield established by the Secretary in a manner
consistent with section 1102(c).
(2) GRAZING OF TRITICALE ACREAGE- The amount of a payment made under
this section to a producer on a farm described in subsection (a)(2) shall be
equal to the amount determined by multiplying--
(A) the loan deficiency payment rate determined under section 1205(c)
in effect for wheat, as of the date of the agreement, for the county in
which the farm is located; by
(B) the payment quantity determined by multiplying--
(i) the quantity of the grazed acreage on the farm with respect to
which the producer elects to forgo harvesting of triticale;
and
(ii) the payment yield in effect for the calculation of direct
payments under subtitle A with respect to wheat on the farm or, in the
case of a farm without a payment yield for wheat, an appropriate yield
established by the Secretary in a manner consistent with section
1102(c).
(c) TIME, MANNER, AND AVAILABILITY OF PAYMENT-
(1) TIME AND MANNER- A payment under this section shall be made at the
same time and in the same manner as loan deficiency payments are made under
section 1205.
(2) AVAILABILITY- The Secretary shall establish an availability period
for the payments authorized by this section. In the case of wheat, barley,
and oats, the availability period shall be consistent with the availability
period for the commodity established by the Secretary for marketing
assistance loans authorized by this subtitle.
(d) PROHIBITION ON CROP INSURANCE INDEMNITY OR NONINSURED CROP ASSISTANCE-
A 2002 through 2007 crop of wheat, barley, oats, or triticale planted on
acreage that a producer elects, in the agreement required by subsection (a),
to use for the grazing of livestock in lieu of any other harvesting of the
crop shall not be eligible for an indemnity under the Federal Crop Insurance
Act (7 U.S.C. 1501 et seq.) or noninsured crop assistance under section 196 of
the Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7333).
SEC. 1207. SPECIAL MARKETING LOAN PROVISIONS FOR UPLAND COTTON.
(a) Cotton User Marketing Certificates-
(1) ISSUANCE- During the period beginning on the date of the enactment
of this Act through July 31, 2008, the Secretary shall issue marketing
certificates or cash payments, at the option of the recipient, to domestic
users and exporters for documented purchases by domestic users and sales for
export by exporters made in the week following a consecutive 4-week period
in which--
(A) the Friday through Thursday average price quotation for the
lowest-priced United States growth, as quoted for Middling (M) 1 3/32
-inch cotton, delivered C.I.F. Northern Europe exceeds the Northern Europe
price by more than 1.25 cents per pound; and
(B) the prevailing world market price for upland cotton (adjusted to
United States quality and location) does not exceed 134 percent of the
loan rate for upland cotton established under section 1202.
(2) VALUE OF CERTIFICATES OR PAYMENTS- The value of the marketing
certificates or cash payments shall be based on the amount of the difference
(reduced by 1.25 cents per pound) in the prices during the fourth week of
the consecutive 4-week period multiplied by the quantity of upland cotton
included in the documented sales.
(3) ADMINISTRATION OF MARKETING CERTIFICATES-
(A) REDEMPTION, MARKETING, OR EXCHANGE- The Secretary shall establish
procedures for redeeming marketing certificates for cash or marketing or
exchange of the certificates for agricultural commodities owned by the
Commodity Credit Corporation or pledged to the Commodity Credit
Corporation as collateral for a loan in such manner, and at such price
levels, as the Secretary determines will best effectuate the purposes of
cotton user marketing certificates, including enhancing the
competitiveness and marketability of United States cotton. Any price
restrictions that would otherwise apply to the disposition of agricultural
commodities by the Commodity Credit Corporation shall not apply to the
redemption of certificates under this subsection.
(B) DESIGNATION OF COMMODITIES AND PRODUCTS- To the extent
practicable, the Secretary shall permit owners of certificates to
designate the commodities and products, including storage sites, the
owners would prefer to receive in exchange for certificates
(C) TRANSFERS- Marketing certificates issued to domestic users and
exporters of upland cotton may be transferred to other persons in
accordance with regulations issued by the Secretary.
(4) DELAYED APPLICATION OF THRESHOLD- Through July 31, 2006, the
Secretary shall make the calculations under paragraphs (1)(A) and (2)
without regard to the 1.25 cent threshold provided under those
paragraphs.
(b) Special Import Quota-
(A) IN GENERAL- The President shall carry out an import quota program
during the period beginning on the date of the enactment of this Act
through July 31, 2008, as provided in this subsection.
(B) PROGRAM REQUIREMENTS- Except as provided in subparagraph (C),
whenever the Secretary determines and announces that for any consecutive
4-week period, the Friday through Thursday average price quotation for the
lowest-priced United States growth, as quoted for Middling (M) 1 3/32
-inch cotton, delivered C.I.F. Northern Europe, adjusted for the value of
any certificate issued under subsection (a), exceeds the Northern Europe
price by more than 1.25 cents per pound, there shall immediately be in
effect a special import quota.
(C) TIGHT DOMESTIC SUPPLY- During any month for which the Secretary
estimates the season-ending United States upland cotton stocks-to-use
ratio, as determined under subparagraph (D), to be below 16 percent, the
Secretary, in making the determination under subparagraph (B), shall not
adjust the Friday through Thursday average price quotation for the
lowest-priced United States growth, as quoted for Middling (M) 1 3/32
-inch cotton, delivered C.I.F. Northern Europe, for the value of any
certificates issued under subsection (a).
(D) SEASON-ENDING UNITED STATES STOCKS-TO-USE RATIO- For the purposes
of making estimates under subparagraph (C), the Secretary shall, on a
monthly basis, estimate and report the season-ending United States upland
cotton stocks-to-use ratio, excluding projected raw cotton imports but
including the quantity of raw cotton that has been imported into the
United States during the marketing year.
(E) DELAYED APPLICATION OF THRESHOLD- Through July 31, 2006, the
Secretary shall make the calculation under subparagraph (B) without regard
to the 1.25 cent threshold provided under that subparagraph.
(2) QUANTITY- The quota shall be equal to one week's consumption of
upland cotton by domestic mills at the seasonally adjusted average rate of
the most recent three months for which data are available.
(3) APPLICATION- The quota shall apply to upland cotton purchased not
later than 90 days after the date of the Secretary's announcement under
paragraph (1) and entered into the United States not later than 180 days
after the date.
(4) OVERLAP- A special quota period may be established that overlaps any
existing quota period if required by paragraph (1), except that a special
quota period may not be established under this subsection if a quota period
has been established under subsection (c).
(5) PREFERENTIAL TARIFF TREATMENT- The quantity under a special import
quota shall be considered to be an in-quota quantity for purposes of--
(A) section 213(d) of the Caribbean Basin Economic Recovery Act (19
U.S.C. 2703(d));
(B) section 204 of the Andean Trade Preference Act (19 U.S.C.
3203);
(C) section 503(d) of the Trade Act of 1974 (19 U.S.C. 2463(d));
and
(D) General Note 3(a)(iv) to the Harmonized Tariff Schedule.
(6) DEFINITION- In this subsection, the term `special import quota'
means a quantity of imports that is not subject to the over-quota tariff
rate of a tariff-rate quota.
(7) LIMITATION- The quantity of cotton entered into the United States
during any marketing year under the special import quota established under
this subsection may not exceed the equivalent of 5 week's consumption of
upland cotton by domestic mills at the seasonally adjusted average rate of
the 3 months immediately preceding the first special import quota
established in any marketing year.
(c) LIMITED GLOBAL IMPORT QUOTA FOR UPLAND COTTON-
(1) IN GENERAL- The President shall carry out an import quota program
that provides that whenever the Secretary determines and announces that the
average price of the base quality of upland cotton, as determined by the
Secretary, in the designated spot markets for a month exceeded 130 percent
of the average price of such quality of cotton in the markets for the
preceding 36 months, notwithstanding any other provision of law, there shall
immediately be in effect a limited global import quota subject to the
following conditions:
(A) QUANTITY- The quantity of the quota shall be equal to 21 days of
domestic mill consumption of upland cotton at the seasonally adjusted
average rate of the most recent 3 months for which data are
available.
(B) QUANTITY IF PRIOR QUOTA- If a quota has been established under
this subsection during the preceding 12 months, the quantity of the quota
next established under this subsection shall be the smaller of 21 days of
domestic mill consumption calculated under subparagraph (A) or the
quantity required to increase the supply to 130 percent of the
demand.
(C) PREFERENTIAL TARIFF TREATMENT- The quantity under a limited global
import quota shall be considered to be an in-quota quantity for purposes
of--
(i) section 213(d) of the Caribbean Basin Economic Recovery Act (19
U.S.C. 2703(d));
(ii) section 204 of the Andean Trade Preference Act (19 U.S.C.
3203);
(iii) section 503(d) of the Trade Act of 1974 (19 U.S.C. 2463(d));
and
(iv) General Note 3(a)(iv) to the Harmonized Tariff
Schedule.
(D) DEFINITIONS- In this subsection:
(i) SUPPLY- The term `supply' means, using the latest official data
of the Bureau of the Census, the Department of Agriculture, and the
Department of the Treasury--
(I) the carry-over of upland cotton at the beginning of the
marketing year (adjusted to 480-pound bales) in which the quota is
established;
(II) production of the current crop; and
(III) imports to the latest date available during the marketing
year.
(ii) DEMAND- The term `demand' means--
(I) the average seasonally adjusted annual rate of domestic mill
consumption during the most recent 3 months for which data are
available; and
(aa) average exports of upland cotton during the preceding 6
marketing years; or
(bb) cumulative exports of upland cotton plus outstanding export
sales for the marketing year in which the quota is established.
(iii) LIMITED GLOBAL IMPORT QUOTA- The term `limited global import
quota' means a quantity of imports that is not subject to the over-quota
tariff rate of a tariff-rate quota.
(E) QUOTA ENTRY PERIOD- When a quota is established under this
subsection, cotton may be entered under the quota during the 90-day period
beginning on the date the quota is established by the Secretary.
(2) NO OVERLAP- Notwithstanding paragraph (1), a quota period may not be
established that overlaps an existing quota period or a special quota period
established under subsection (b).
SEC. 1208. SPECIAL COMPETITIVE PROVISIONS FOR EXTRA LONG STAPLE COTTON.
(a) COMPETITIVENESS PROGRAM- Notwithstanding any other provision of law,
during the period beginning on the date of the enactment of this Act through
July 31, 2008, the Secretary shall carry out a program--
(1) to maintain and expand the domestic use of extra long staple cotton
produced in the United States;
(2) to increase exports of extra long staple cotton produced in the
United States; and
(3) to ensure that extra long staple cotton produced in the United
States remains competitive in world markets.
(b) PAYMENTS UNDER PROGRAM; TRIGGER- Under the program, the Secretary
shall make payments available under this section whenever--
(1) for a consecutive 4-week period, the world market price for the
lowest priced competing growth of extra long staple cotton (adjusted to
United States quality and location and for other factors affecting the
competitiveness of such cotton), as determined by the Secretary, is below
the prevailing United States price for a competing growth of extra long
staple cotton; and
(2) the lowest priced competing growth of extra long staple cotton
(adjusted to United States quality and location and for other factors
affecting the competitiveness of such cotton), as determined by the
Secretary, is less than 134 percent of the loan rate for extra long staple
cotton.
(c) ELIGIBLE RECIPIENTS- The Secretary shall make payments available under
this section to domestic users of extra long staple cotton produced in the
United States and exporters of extra long staple cotton produced in the United
States that enter into an agreement with the Commodity Credit Corporation to
participate in the program under this section.
(d) PAYMENT AMOUNT- Payments under this section shall be based on the
amount of the difference in the prices referred to in subsection (b)(1) during
the fourth week of the consecutive 4-week period multiplied by the amount of
documented purchases by domestic users and sales for export by exporters made
in the week following such a consecutive 4-week period.
(e) FORM OF PAYMENT- Payments under this section shall be made through the
issuance of cash or marketing certificates, at the option of eligible
recipients of the payments.
SEC. 1209. AVAILABILITY OF RECOURSE LOANS FOR HIGH MOISTURE FEED GRAINS AND
SEED COTTON.
(a) HIGH MOISTURE FEED GRAINS-
(1) RECOURSE LOANS AVAILABLE- For each of the 2002 through 2007 crops of
corn and grain sorghum, the Secretary shall make available recourse loans,
as determined by the Secretary, to producers on a farm that--
(A) normally harvest all or a portion of their crop of corn or grain
sorghum in a high moisture state;
(i) certified scale tickets from an inspected, certified commercial
scale, including a licensed warehouse, feedlot, feed mill, distillery,
or other similar entity approved by the Secretary, pursuant to
regulations issued by the Secretary; or
(ii) field or other physical measurements of the standing or stored
crop in regions of the United States, as determined by the Secretary,
that do not have certified commercial scales from which certified scale
tickets may be obtained within reasonable proximity of harvest
operation;
(C) certify that they were the owners of the feed grain at the time of
delivery to, and that the quantity to be placed under loan under this
subsection was in fact harvested on the farm and delivered to, a feedlot,
feed mill, or commercial or on-farm high-moisture storage facility, or to
a facility maintained by the users of corn and grain sorghum in a high
moisture state; and
(D) comply with deadlines established by the Secretary for harvesting
the corn or grain sorghum and submit applications for loans under this
subsection within deadlines established by the Secretary.
(2) ELIGIBILITY OF ACQUIRED FEED GRAINS- A loan under this subsection
shall be made on a quantity of corn or grain sorghum of the same crop
acquired by the producer equivalent to a quantity determined by
multiplying--
(A) the acreage of the corn or grain sorghum in a high moisture state
harvested on the producer's farm; by
(B) the lower of the farm program payment yield used to make
counter-cyclical payments under subtitle A or the actual yield on a field,
as determined by the Secretary, that is similar to the field from which
the corn or grain sorghum was obtained.
(3) HIGH MOISTURE STATE DEFINED- In this subsection, the term `high
moisture state' means corn or grain sorghum having a moisture content in
excess of Commodity Credit Corporation standards for marketing assistance
loans made by the Secretary under section 1201.
(b) RECOURSE LOANS AVAILABLE FOR SEED COTTON- For each of the 2002 through
2007 crops of upland cotton and extra long staple cotton, the Secretary shall
make available recourse seed cotton loans, as determined by the Secretary, on
any production.
(c) REPAYMENT RATES- Repayment of a recourse loan made under this section
shall be at the loan rate established for the commodity by the Secretary, plus
interest (determined in accordance with section 163 of the Federal Agriculture
Improvement and Reform Act of 1996 (7 U.S.C. 7283)).
(d) TERMINATION OF SUPERSEDED LOAN AUTHORITY- Notwithstanding section 137
of the Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7237),
recourse loans shall not be made for the 2002 crop of corn, grain sorghum, and
seed cotton under such section.
Subtitle C--Peanuts
SEC. 1301. DEFINITIONS.
(1) BASE ACRES FOR PEANUTS- The term `base acres for peanuts' means the
number of acres assigned to a farm by historic peanut producers pursuant to
section 1302(b).
(2) COUNTER-CYCLICAL PAYMENT- The term `counter-cyclical payment' means
a payment made under section 1304.
(3) EFFECTIVE PRICE- The term `effective price' means the price
calculated by the Secretary under section 1304 for peanuts to determine
whether counter-cyclical payments are required to be made under that section
for a crop year.
(4) DIRECT PAYMENT- The term `direct payment' means a payment made under
section 1303.
(5) HISTORIC PEANUT PRODUCER- The term `historic peanut producer' means
a producer on a farm in the United States that produced or was prevented
from planting peanuts during any or all of the 1998 through 2001 crop
years.
(6) PAYMENT ACRES- The term `payment acres' means--
(A) for the 2002 crop of peanuts, 85 percent of the average acreage
determined under section 1302(a)(2) for an historic peanut producer;
and
(B) for the 2003 through 2007 crops of peanuts, 85 percent of the base
acres for peanuts assigned to a farm under section 1302(b).
(7) PAYMENT YIELD- The term `payment yield' means the yield assigned to
a farm by historic peanut producers pursuant to section 1302(b).
(8) PRODUCER- The term `producer' means an owner, operator, landlord,
tenant, or sharecropper that shares in the risk of producing a crop on a
farm and is entitled to share in the crop available for marketing from the
farm, or would have shared had the crop been produced. In determining
whether a grower of hybrid seed is a producer, the Secretary shall not take
into consideration the existence of a hybrid seed contract and shall ensure
that program requirements do not adversely affect the ability of the grower
to receive a payment under this subtitle.
(9) SECRETARY- The term `Secretary' means the Secretary of
Agriculture.
(10) STATE- The term `State' means each of the several States of the
United States, the District of Columbia, the Commonwealth of Puerto Rico,
and any other territory or possession of the United States.
(11) TARGET PRICE- The term `target price' means the price per ton of
peanuts used to determine the payment rate for counter-cyclical
payments.
(12) UNITED STATES- The term `United States', when used in a
geographical sense, means all of the States.
SEC. 1302. ESTABLISHMENT OF PAYMENT YIELD AND BASE ACRES FOR PEANUTS FOR A
FARM.
(a) AVERAGE YIELD AND ACREAGE AVERAGE FOR HISTORIC PEANUT PRODUCERS-
(1) DETERMINATION OF AVERAGE YIELD-
(A) IN GENERAL- The Secretary shall determine, for each historic
peanut producer, the average yield for peanuts on each farm on which the
historic peanut producer planted peanuts for harvest for the 1998 through
2001 crop years, excluding any crop year in which the producer did not
plant or was prevented from planting peanuts.
(B) ASSIGNED YIELDS- For the purposes of determining the 4-year
average yield for an historic peanut producer under this paragraph, the
historic peanut producer may elect to substitute for a farm, for not more
than 3 of the 1998 through 2001 crop years in which the producer planted
peanuts on the farm, the average yield for peanuts produced in the county
in which the farm is located for the 1990 through 1997 crop
years.
(2) DETERMINATION OF ACREAGE AVERAGE-
(A) IN GENERAL- The Secretary shall determine, for each historic
peanut producer, the 4-year average of the following:
(i) Acreage planted to peanuts on each farm on which the historic
peanut producer planted peanuts for harvest for the 1998 through 2001
crop years.
(ii) Any acreage on each farm that the historic peanut producer was
prevented from planting to peanuts during the 1998 through 2001 crop
years because of drought, flood, or other natural disaster, or other
condition beyond the control of the historic peanut producer, as
determined by the Secretary.
(B) INCLUSION OF ALL 4 YEARS IN AVERAGE- For the purposes of
determining the 4-year acreage average for an historic peanut producer
under this paragraph, the Secretary shall not exclude any crop year in
which the producer did not plant peanuts.
(C) PROPORTIONAL SHARES- If more than 1 historic peanut producer
shared in the risk of producing the crop on a farm, the historic peanut
producers shall receive their proportional share of the number of acres
planted (or prevented from being planted) to peanuts for harvest on the
farm based on the sharing arrangement that was in effect among the
producers for the crop.
(3) TIME FOR DETERMINATIONS- The Secretary shall make the determinations
required by this subsection as soon as practicable after the date of
enactment of this Act.
(4) SPECIAL CONSIDERATIONS- In making the determinations required by
this subsection, the Secretary shall take into account changes in the
number, identity, or interest of 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--
(A) when an historic peanut producer is no longer living;
(B) when an entity composed of historic peanut producers has been
dissolved; or
(C) in other appropriate situations, as determined by the
Secretary.
(b) ASSIGNMENT OF AVERAGE YIELDS AND AVERAGE ACREAGE TO FARMS-
(1) ASSIGNMENT BY HISTORIC PEANUT PRODUCERS- The Secretary shall give
each historic peanut producer an opportunity to assign the average peanut
yield and average acreage determined under subsection (a) for each farm of
the historic peanut producer to cropland on that farm or another farm in the
same State or a contiguous State.
(2) LIMITATION ON ACREAGE ASSIGNMENT- Notwithstanding paragraph (1), the
average acreage determined under subsection (a)(2) for a farm may not be
assigned to a farm in a contiguous State unless--
(A) the historic peanut producer making the assignment produced
peanuts in that State during at least 1 of the 1998 through 2001 crop
years; or
(B) as of March 31, 2003, the historic peanut producer is a producer
on a farm in that State.
(3) NOTICE OF ASSIGNMENT OPPORTUNITY- The Secretary shall provide notice
to historic peanut producers regarding their opportunity to assign average
peanut yields and average acreages to farms under paragraph (1). The notice
shall include the following:
(A) Notice that the opportunity to make the assignments is being
provided only once.
(B) A description of the limitation in paragraph (2) on their ability
to make the assignments.
(C) Information regarding the manner in which the assignments must be
made and the time periods and manner in which notice of the assignments
must be submitted to the Secretary.
(4) ASSIGNMENT DEADLINES- Not later than March 31, 2003, an historic
peanut producer shall submit to the Secretary notice of the assignments made
by the producer under this subsection. If an historic peanut producer fails
to submit the notice by that date, the notice shall be submitted in such
other manner as the Secretary may prescribe.
(c) PAYMENT YIELD- The average of all of the yields assigned by historic
peanut producers under subsection (b) to a farm shall be considered to be the
payment yield for that farm for the purpose of making direct payments and
counter-cyclical payments under this subtitle.
(d) BASE ACRES FOR PEANUTS- Subject to subsection (e), the total number of
acres assigned by historic peanut producers under subsection (b) to a farm
shall be considered to be the farm's base acres for peanuts for the purpose of
making direct payments and counter-cyclical payments under this subtitle.
(e) TREATMENT OF CONSERVATION RESERVE CONTRACT ACREAGE-
(1) IN GENERAL- The Secretary shall provide for an adjustment, as
appropriate, in the base acres for peanuts for a farm whenever either of the
following circumstances occur:
(A) A conservation reserve contract entered into under section 1231 of
the Food Security Act of 1985 (16 U.S.C. 3831) with respect to the farm
expires or is voluntarily terminated.
(B) Cropland is released from coverage under a conservation reserve
contract by the Secretary.
(2) SPECIAL PAYMENT RULES- For the crop year in which a base acres for
peanuts adjustment under paragraph (1) is first made, the owner of the farm
shall elect to receive either direct payments and counter-cyclical payments
with respect to the acreage added to the farm under this subsection or a
prorated payment under the conservation reserve contract, but not
both.
(f) PREVENTION OF EXCESS BASE ACRES FOR PEANUTS-
(1) REQUIRED REDUCTION- If the sum of the base acres for peanuts for a
farm, together with the acreage described in paragraph (2), exceeds the
actual cropland acreage of the farm, the Secretary shall reduce the base
acres for peanuts for the farm or the base acres for 1 or more covered
commodities under subtitle A for the farm so that the sum of the base acres
for peanuts and acreage described in paragraph (2) does not exceed the
actual cropland acreage of the farm.
(2) OTHER ACREAGE- For purposes of paragraph (1), the Secretary shall
include the following:
(A) Any base acres for the farm under subtitle A.
(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.).
(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) SELECTION OF ACRES- The Secretary shall give the owner of the farm
the opportunity to select the base acres for peanuts or the subtitle A base
acres against which the reduction required by paragraph (1) will be
made.
(4) EXCEPTION FOR DOUBLE-CROPPED ACREAGE- In applying paragraph (1), the
Secretary shall make an exception in the case of double cropping, as
determined by the Secretary.
(5) COORDINATED APPLICATION OF REQUIREMENTS- The Secretary shall take
into account section 1101(g) when applying the requirements of this
subsection.
(g) PERMANENT REDUCTION IN BASE ACRES FOR PEANUTS- The owner of a farm may
reduce, at any time, the base acres for peanuts assigned to the farm. The
reduction shall be permanent and made in the manner prescribed by the
Secretary.
SEC. 1303. AVAILABILITY OF DIRECT PAYMENTS FOR PEANUTS.
(1) 2002 CROP YEAR- For the 2002 crop year, the Secretary shall make
direct payments under this section to historic peanut producers.
(2) SUBSEQUENT CROP YEARS- For each of the 2003 through 2007 crop years
for peanuts, the Secretary shall make direct payments to the producers on a
farm to which a payment yield and base acres for peanuts are assigned under
section 1302.
(b) PAYMENT RATE- The payment rate used to make direct payments with
respect to peanuts for a crop year shall be equal to $36 per ton.
(c) PAYMENT AMOUNT FOR 2002 CROP YEAR- The amount of the direct payment to
be paid to an historic peanut producer for the 2002 crop of peanuts shall be
equal to the product of the following:
(1) The payment rate specified in subsection (b).
(2) The payment acres of the historic peanut producer.
(3) The average peanut yield determined under section 1302(a)(1) for the
historic peanut producer.
(d) PAYMENT AMOUNT FOR SUBSEQUENT CROP YEARS- The amount of the direct
payment to be paid to the producers on a farm for the 2003 through 2007 crops
of peanuts shall be equal to the product of the following:
(1) The payment rate specified in subsection (b).
(2) The payment acres on the farm.
(3) The payment yield for the farm.
(1) IN GENERAL- The Secretary shall make direct payments--
(A) in the case of the 2002 crop year, as soon as practicable after
the date of enactment of this Act; and
(B) in the case of each of the 2003 through 2007 crop years, not later
than September 30 of the calendar year in which the crop is
harvested.
(2) ADVANCE PAYMENTS- At the option of the producers on a farm, up to 50
percent of the direct payment for any of the 2003 through 2007 crop years
shall be paid to the producers in advance. The producers shall select the
month within which the advance payment for a crop year will be made. The
month selected may be any month during the period beginning on December 1 of
the calendar year before the calendar year in which the crop is harvested
through the month within which the direct payment would otherwise be made.
The producers may change the selected month for a subsequent advance payment
by providing advance notice to the Secretary.
(3) REPAYMENT OF ADVANCE PAYMENTS- If a producer on a farm that receives
an advance direct payment for a crop year ceases to be a producer on that
farm, or the extent to which the producer shares in the risk of producing a
crop changes, before the date the remainder of the direct payment is made,
the producer shall be responsible for repaying the Secretary the applicable
amount of the advance payment, as determined by the Secretary.
SEC. 1304. AVAILABILITY OF COUNTER-CYCLICAL PAYMENTS FOR PEANUTS.
(1) IN GENERAL- During the 2002 through 2007 crop years for peanuts, the
Secretary shall make counter-cyclical payments under this section with
respect to peanuts if the Secretary determines that the effective price for
peanuts is less than the target price for peanuts.
(2) 2002 CROP YEAR- If counter-cyclical payments are required for the
2002 crop year, the Secretary shall make the payments to historic peanut
producers.
(3) SUBSEQUENT CROP YEARS- If counter-cyclical payments are required for
any of the 2003 through 2007 crop years for peanuts, the Secretary shall
make the payments to the producers on a farm to which a payment yield and
base acres for peanuts are assigned under section 1302.
(b) EFFECTIVE PRICE- For purposes of subsection (a), the effective price
for peanuts is equal to the sum of the following:
(1) The higher of the following:
(A) The national average market price for peanuts received by
producers during the 12-month marketing year for peanuts, as determined by
the Secretary.
(B) The national average loan rate for a marketing assistance loan for
peanuts in effect for the applicable period under this subtitle.
(2) The payment rate in effect under section 1303 for the purpose of
making direct payments.
(c) TARGET PRICE- For purposes of subsection (a), the target price for
peanuts shall be equal to $495 per ton.
(d) PAYMENT RATE- The payment rate used to make counter-cyclical payments
for a crop year shall be equal to the difference between--
(1) the target price; and
(2) the effective price determined under subsection (b).
(e) PAYMENT AMOUNT FOR 2002 CROP YEAR- If counter-cyclical payments are
required to be paid for the 2002 crop of peanuts, the amount of the
counter-cyclical payment to be paid to an historic peanut producer for that
crop year shall be equal to the product of the following:
(1) The payment rate specified in subsection (d).
(2) The payment acres of the historic peanut producer.
(3) The average peanut yield determined under section 1302(a)(1) for the
historic peanut producer.
(f) PAYMENT AMOUNT FOR SUBSEQUENT CROP YEARS- If counter-cyclical payments
are required to be paid for any of the 2003 through 2007 crops of peanuts, the
amount of the counter-cyclical payment to be paid to the producers on a farm
for that crop year shall be equal to the product of the following:
(1) The payment rate specified in subsection (d).
(2) The payment acres on the farm.
(3) The payment yield for the farm.
(1) GENERAL RULE- If the Secretary determines under subsection (a) that
counter-cyclical payments are required to be made under this section for a
crop year, the Secretary shall make the counter-cyclical payments as soon as
practicable after the end of the 12-month marketing year for the crop.
(2) AVAILABILITY OF PARTIAL PAYMENTS- If, before the end of the 12-month
marketing year, the Secretary estimates that counter-cyclical payments will
be required under this section for a crop year, the Secretary shall give
producers on a farm (or, in the case of the 2002 crop year, historic peanut
producers) the option to receive partial payments of the counter-cyclical
payment projected to be made for that crop.
(3) TIME FOR PARTIAL PAYMENTS-
(A) 2002 THROUGH 2006 CROP YEARS- When the Secretary makes partial
payments available under paragraph (2) for any of the 2002 through 2006
crop years--
(i) the first partial payment for the crop year shall be made not
earlier than October 1, and, to the maximum extent practicable, not
later than October 31, of the calendar year in which the crop is
harvested;
(ii) the second partial payment shall be made not earlier than
February 1 of the next calendar year; and
(iii) the final partial payment shall be made as soon as practicable
after the end of the 12-month marketing year for that crop.
(B) 2007 CROP YEAR- When the Secretary makes partial payments
available for the 2007 crop year--
(i) the first partial payment shall be made after completion of the
first 6 months of the marketing year for that crop; and
(ii) the final partial payment shall be made as soon as practicable
after the end of the 12-month marketing year for that crop.
(4) AMOUNT OF PARTIAL PAYMENTS-
(i) FIRST PARTIAL PAYMENT- In the case of the 2002 crop year, the
first partial payment under paragraph (3) to an historic peanut producer
may not exceed 35 percent of the projected counter-cyclical payment for
the crop year, as determined by the Secretary.
(ii) SECOND PARTIAL PAYMENT- The second partial payment may not
exceed the difference between--
(I) 70 percent of the projected counter-cyclical payment
(including any revision thereof) for the 2002 crop year;
and
(II) the amount of the payment made under clause
(i).
(iii) FINAL PAYMENT- The final payment shall be equal to the
difference between--
(I) the actual counter-cyclical payment to be made to the historic
peanut producer; and
(II) the amount of the partial payments made to the historic
peanut producer under clauses (i) and (ii).
(B) 2003 THROUGH 2006 CROP YEARS-
(i) FIRST PARTIAL PAYMENT- For each of the 2003 through 2006 crop
years, the first partial payment under paragraph (3) to the producers on
a farm may not exceed 35 percent of the projected counter-cyclical
payment for the crop year, as determined by the Secretary.
(ii) SECOND PARTIAL PAYMENT- The second partial payment for a crop
year may not exceed the difference between--
(I) 70 percent of the projected counter-cyclical payment
(including any revision thereof) for the crop year; and
(II) the amount of the payment made under clause
(i).
(iii) FINAL PAYMENT- The final payment for a crop year shall be
equal to the difference between--
(I) the actual counter-cyclical payment to be made to the
producers for that crop year; and
(II) the amount of the partial payments made to the producers
under clauses (i) and (ii) for that crop year.
(i) FIRST PARTIAL PAYMENT- For the 2007 crop year, the first partial
payment under paragraph (3) to the producers on a farm may not exceed 40
percent of the projected counter-cyclical payment for the crop year, as
determined by the Secretary.
(ii) FINAL PAYMENT- The final payment for the 2007 crop year shall
be equal to the difference between--
(I) the actual counter-cyclical payment to be made to the
producers for that crop year; and
(II) the amount of the partial payment made to the producers under
clause (i).
(5) REPAYMENT- The producers on a farm (or, in the case of the 2002 crop
year, historic peanut producers) that receive a partial payment under this
subsection for a crop year shall repay to the Secretary the amount, if any,
by which the total of the partial payments exceed the actual
counter-cyclical payment to be made for that crop year.
SEC. 1305. PRODUCER AGREEMENT REQUIRED AS CONDITION ON PROVISION OF DIRECT
PAYMENTS AND COUNTER-CYCLICAL PAYMENTS.
(a) COMPLIANCE WITH CERTAIN REQUIREMENTS-
(1) REQUIREMENTS- Before the producers on a farm may receive direct
payments or counter-cyclical payments under this subtitle with respect to
the farm, the producers shall agree, during the crop year for which the
payments are made and in exchange for the payments--
(A) to comply with applicable conservation requirements under subtitle
B of title XII of the Food Security Act of 1985 (16 U.S.C. 3811 et
seq.);
(B) to comply with applicable wetland protection requirements under
subtitle C of title XII of that Act (16 U.S.C. 3821 et seq.);
(C) to comply with the planting flexibility requirements of section
1306;
(D) to use the land on the farm, in a quantity equal to the
attributable base acres for peanuts and any base acres for the farm under
subtitle A, for an agricultural or conserving use, and not for a
nonagricultural commercial or industrial use, as determined by the
Secretary; and
(E) to effectively control noxious weeds and otherwise maintain the
land in accordance with sound agricultural practices, as determined by the
Secretary, if the agricultural or conserving use involves the
noncultivation of any portion of the land referred to in subparagraph
(D).
(2) COMPLIANCE- The Secretary may issue such rules as the Secretary
considers necessary to ensure producer compliance with the requirements of
paragraph (1).
(3) MODIFICATION- At the request of the transferee or owner, the
Secretary may modify the requirements of this subsection if the
modifications are consistent with the objectives of this subsection, as
determined by the Secretary.
(b) TRANSFER OR CHANGE OF INTEREST IN FARM-
(1) TERMINATION- Except as provided in paragraph (2), a transfer of (or
change in) the interest of the producers on a farm in the base acres for
peanuts for which direct payments or counter-cyclical payments are made
shall result in the termination of the payments with respect to those acres,
unless the transferee or owner of the acreage agrees to assume all
obligations under subsection (a). The termination shall take effect on the
date determined by the Secretary.
(2) EXCEPTION- If a 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 rules issued by the Secretary.
(c) ACREAGE REPORTS- As a condition on the receipt of direct payments,
counter-cyclical payments, marketing assistance loans, or loan deficiency
payments under this subtitle, the Secretary shall require the producers on a
farm to which a payment yield and base acres for peanuts are assigned under
section 1302 to submit to the Secretary annual acreage reports with respect to
all cropland on the farm.
(d) TENANTS AND SHARECROPPERS- In carrying out this subtitle, the
Secretary shall provide adequate safeguards to protect the interests of
tenants and sharecroppers.
(e) SHARING OF PAYMENTS- The Secretary shall provide for the sharing of
direct payments and counter-cyclical payments among the producers on a farm on
a fair and equitable basis.
SEC. 1306. PLANTING FLEXIBILITY.
(a) PERMITTED CROPS- Subject to subsection (b), any commodity or crop may
be planted on the base acres for peanuts on a farm.
(b) LIMITATIONS REGARDING CERTAIN COMMODITIES-
(1) GENERAL LIMITATION- The planting of an agricultural commodity
specified in paragraph (2) shall be prohibited on base acres for peanuts
unless the commodity, if planted, is destroyed before harvest.
(2) TREATMENT OF TREES AND OTHER PERENNIALS- The planting of an
agricultural commodity specified in paragraph (3) that is produced on a tree
or other perennial plant shall be prohibited on base acres for
peanuts.
(3) COVERED AGRICULTURAL COMMODITIES- Paragraphs (1) and (2) apply to
the following agricultural commodities:
(B) Vegetables (other than lentils, mung beans, and dry
peas).
(c) EXCEPTIONS- Paragraphs (1) and (2) of subsection (b) shall not limit
the planting of an agricultural commodity specified in paragraph (3) of that
subsection--
(1) in any region in which there is a history of double-cropping of
peanuts with agricultural commodities specified in subsection (b)(3), as
determined by the Secretary, in which case the double-cropping shall be
permitted;
(2) on a farm that the Secretary determines has a history of planting
agricultural commodities specified in subsection (b)(3) on the base acres
for peanuts, except that direct payments and counter-cyclical payments shall
be reduced by an acre for each acre planted to such an agricultural
commodity; or
(3) by the producers on a farm that the Secretary determines has an
established planting history of a specific agricultural commodity specified
in subsection (b)(3), except that--
(A) the quantity planted may not exceed the average annual planting
history of such agricultural commodity by the producers on the farm in the
1991 through 1995 or 1998 through 2001 crop years (excluding any crop year
in which no plantings were made), as determined by the Secretary;
and
(B) direct payments and counter-cyclical payments shall be reduced by
an acre for each acre planted to such agricultural commodity.
SEC. 1307. MARKETING ASSISTANCE LOANS AND LOAN DEFICIENCY PAYMENTS FOR
PEANUTS.
(a) NONRECOURSE LOANS AVAILABLE-
(1) AVAILABILITY- For each of the 2002 through 2007 crops of peanuts,
the Secretary shall make available to producers on a farm nonrecourse
marketing assistance loans for peanuts produced on the farm. The loans shall
be made under terms and conditions that are prescribed by the Secretary and
at the loan rate established under subsection (b).
(2) ELIGIBLE PRODUCTION- The producers on a farm shall be eligible for a
marketing assistance loan under this subsection for any quantity of peanuts
produced on the farm.
(3) TREATMENT OF CERTAIN COMMINGLED COMMODITIES- In carrying out this
subsection, the Secretary shall make loans to producers on a farm that would
be eligible to obtain a marketing assistance loan, but for the fact the
peanuts owned by the producers on the farm are commingled with other peanuts
in facilities unlicensed for the storage of agricultural commodities by the
Secretary or a State licensing authority, if the producers obtaining the
loan agree to immediately redeem the loan collateral in accordance with
section 166 of the Federal Agriculture Improvement and Reform Act of 1996 (7
U.S.C. 7286).
(4) 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 producers on a farm through--
(A) a designated marketing association or marketing cooperative of
producers that is approved by the Secretary; or
(B) the Farm Service Agency.
(5) STORAGE OF LOAN PEANUTS- As a condition on the Secretary's approval
of an individual or entity to provide storage for peanuts for which a
marketing assistance loan is made under this section, the individual or
entity shall agree--
(A) to provide such storage on a nondiscriminatory basis; and
(B) to comply with such additional requirements as the Secretary
considers appropriate to accomplish the purposes of this section and
promote fairness in the administration of the benefits of this
section.
(6) PAYMENT OF PEANUT STORAGE COSTS- Effective for the 2002 through 2006
crops of peanuts, to ensure proper storage of peanuts for which a loan is
made under this section, the Secretary shall use the funds of the Commodity
Credit Corporation to pay storage, handling, and other associated costs.
This authority terminates beginning with the 2007 crop of peanuts.
(7) MARKETING- A marketing association or cooperative may market peanuts
for which a loan is made under this section in any manner that conforms to
consumer needs, including the separation of peanuts by type and
quality.
(b) LOAN RATE- The loan rate for a marketing assistance loan under for
peanuts subsection (a) shall be equal to $355 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).
(1) IN GENERAL- The Secretary shall permit producers on a farm to repay
a marketing assistance loan for peanuts under subsection (a) at a rate that
is the lesser of--
(A) the loan rate established for peanuts under subsection (b), plus
interest (determined in accordance with section 163 of the Federal
Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7283));
or
(B) a rate that the Secretary determines will--
(i) minimize potential loan forfeitures;
(ii) minimize the accumulation of stocks of peanuts by the Federal
Government;
(iii) minimize the cost incurred by the Federal Government in
storing peanuts; and
(iv) allow peanuts produced in the United States to be marketed
freely and competitively, both domestically and
internationally.
(2) GOOD FAITH EXCEPTION TO BENEFICIAL INTEREST REQUIREMENT- For the
2002 crop year only, in the case of the producers on a farm that marketed or
otherwise lost beneficial interest in the peanuts for which a marketing
assistance loan was made under this section before repaying the loan, the
Secretary shall permit the producers to repay the loan at the applicable
repayment rate that was in effect for peanuts under this subsection on the
date that the producers lost beneficial interest, as determined by the
Secretary, if the Secretary determines the producers acted in good
faith.
(e) LOAN DEFICIENCY PAYMENTS-
(1) AVAILABILITY- The Secretary may make loan deficiency payments
available to 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 loan deficiency payments
under this subsection.
(2) COMPUTATION- A loan deficiency payment under this subsection shall
be computed by multiplying--
(A) the payment rate determined under paragraph (3) for peanuts;
by
(B) the quantity of the peanuts produced by the producers, excluding
any quantity for which the producers obtain a marketing assistance loan
under subsection (a).
(3) PAYMENT RATE- For purposes of this subsection, the 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) EFFECTIVE DATE FOR PAYMENT RATE DETERMINATION-
(A) IN GENERAL- The Secretary shall determine the amount of the loan
deficiency payment to be made under this subsection to the producers on a
farm with respect to a quantity of peanuts using the payment rate in
effect under paragraph (3) as of the date the producers request the
payment.
(B) SPECIAL RULE FOR 2002 CROP YEAR- For the 2002 crop year only, the
Secretary shall determine the amount of the loan deficiency payment to be
made under this subsection to the producers on a farm with respect to a
quantity of peanuts using the payment rate in effect under paragraph (3)
as of the earlier of the following:
(i) The date on which the producers marketed or otherwise lost
beneficial interest in the crop, as determined by the
Secretary.
(ii) The date the producers request the payment.
(f) COMPLIANCE WITH CONSERVATION AND WETLANDS REQUIREMENTS- As a condition
of the receipt of a marketing assistance loan under subsection (a), the
producer shall comply with applicable conservation requirements under subtitle
B of title XII of the Food Security Act of 1985 (16 U.S.C. 3811 et seq.) and
applicable wetland protection requirements under subtitle C of title XII of
that Act (16 U.S.C. 3821 et seq.) during the term of the loan.
(g) REIMBURSABLE AGREEMENTS AND PAYMENT OF ADMINISTRATIVE EXPENSES- The
Secretary may implement any reimbursable agreements or provide for the payment
of administrative expenses under this subtitle only in a manner that is
consistent with such activities in regard to other commodities.
SEC. 1308. MISCELLANEOUS PROVISIONS.
(a) MANDATORY INSPECTION- All peanuts marketed in the United States shall
be officially inspected and graded by Federal or Federal-State inspectors.
(b) TERMINATION OF PEANUT ADMINISTRATIVE COMMITTEE- The Peanut
Administrative Committee established under Marketing Agreement No. 146 issued
pursuant to 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) PEANUT STANDARDS BOARD-
(1) ESTABLISHMENT AND PURPOSE- The Secretary shall establish a Peanut
Standards Board for the purpose of advising the Secretary regarding the
establishment of quality and handling standards for domestically produced
and imported peanuts.
(2) MEMBERSHIP AND APPOINTMENT-
(A) TOTAL MEMBERS- The Board shall consist of 18 members, with
representation equally divided between peanut producers and peanut
industry representatives.
(B) APPOINTMENT PROCESS FOR PRODUCERS- The Secretary shall
appoint--
(i) 3 producers from the Southeast (Alabama, Georgia, and Florida)
peanut producing region;
(ii) 3 producers from the Southwest (Texas, Oklahoma, and New
Mexico) peanut producing region; and
(iii) 3 producers from the Virginia/Carolina (Virginia and North
Carolina) peanut producing region.
(C) APPOINTMENT PROCESS FOR INDUSTRY REPRESENTATIVES- The Secretary
shall appoint 3 peanut industry representatives from each of the 3 peanut
producing regions in the United States.
(A) IN GENERAL- A member of the Board shall serve a 3-year
term.
(B) INITIAL APPOINTMENT- In making the initial appointments to the
Board, the Secretary shall stagger the terms of the members so
that--
(i) 1 producer member and peanut industry member from each peanut
producing region serves a 1-year term;
(ii) 1 producer member and peanut industry member from each peanut
producing region serves a 2-year term; and
(iii) 1 producer member and peanut industry member from each peanut
producing region serves a 3-year term.
(4) CONSULTATION REQUIRED- The Secretary shall consult with the Board in
advance whenever the Secretary establishes or changes, or considers the
establishment of or a change to, quality and handling standards for
peanuts.
(5) FEDERAL ADVISORY COMMITTEE ACT- The Federal Advisory Committee Act
(5 U.S.C. App.) shall not apply to the Board.
(d) PRIORITY- The Secretary shall make identifying and combating the
presence of all quality concerns related to peanuts a priority in the
development of quality and handling standards for peanuts and in the
inspection of domestically produced and imported peanuts. The Secretary shall
consult with appropriate Federal and State agencies to provide adequate
safeguards against all quality concerns related to peanuts.
(e) CONSISTENT STANDARDS- Imported peanuts shall be subject to the same
quality and handling standards as apply to domestically produced peanuts.
(f) AUTHORIZATION OF APPROPRIATIONS-
(1) IN GENERAL- In addition to other funds that are available to carry
out this section, there is authorized to be appropriated such sums as are
necessary to carry out this section.
(2) TREATMENT OF BOARD EXPENSES- The expenses of the Peanut Standards
Board shall not be counted toward any general limitation on the expenses of
advisory committees, panels, commissions, and task forces of the Department
of Agriculture, whether enacted before, on, or after the date of enactment
of this Act, unless the limitation specifically refers to this paragraph and
specifically includes the Peanut Standards Board within the general
limitation.
(1) TEMPORARY DESIGNATION OF PEANUT ADMINISTRATIVE COMMITTEE MEMBERS-
Notwithstanding the appointment process specified in subsection (c) for the
Peanut Standards Board, during the transition period, the Secretary may
designate persons serving as members of the Peanut Administrative Committee
on the day before the date of enactment of this Act to serve as members of
the Peanut Standards Board for the purpose of carrying out the duties of the
Board described in this section.
(2) FUNDS- The Secretary may transfer any funds available to carry out
the activities of the Peanut Administrative Committee to the Peanut
Standards Board to carry out the duties of the Board described in this
section.
(3) TRANSITION PERIOD- In paragraph (1), the term `transition period'
means the period beginning on the date of enactment of this Act and ending
on the earlier of--
(A) the date the Secretary appoints the members of the Peanut
Standards Board pursuant to subsection (c); or
(B) 180 days after the date of enactment of this Act.
(h) EFFECTIVE DATE- This section shall take effect with the 2002 crop of
peanuts.
SEC. 1309. TERMINATION OF MARKETING QUOTA PROGRAMS FOR PEANUTS AND
COMPENSATION TO PEANUT QUOTA HOLDERS FOR LOSS OF QUOTA ASSET VALUE.
(a) REPEAL OF MARKETING QUOTA-
(1) REPEAL- Part VI of subtitle B of title III of the Agricultural
Adjustment Act of 1938 (7 U.S.C. 1357-1359a), relating to peanuts, is
repealed.
(2) TREATMENT OF 2001 CROP- Part VI of subtitle B of title III of the
Agricultural Adjustment Act of 1938 (7 U.S.C. 1357-1359a), as in effect on
the day before the date of enactment of this Act, shall continue to apply
with respect to the 2001 crop of peanuts notwithstanding the amendment made
by paragraph (1). Section 1308(g)(2) shall also apply to the 2001 crop of
peanuts.
(b) COMPENSATION CONTRACT REQUIRED-
(1) IN GENERAL- The Secretary shall offer to enter into a contract with
each person that the Secretary determines is an eligible peanut quota holder
under subsection (f) for the purpose of providing compensation for the lost
value of the quota on account of the repeal of the marketing quota program
for peanuts under subsection (a).
(2) PAYMENT PERIOD- The Secretary shall make payments under the
contracts during fiscal years 2002 through 2006.
(1) PAYMENT IN INSTALLMENTS- 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.
(2) SINGLE PAYMENT- At the request of an eligible peanut quota holder
entitled to payments under a contract, the Secretary shall provide the
entire payment amount determined under subsection (d) with respect to the
eligible peanut quota holder for the 5 fiscal years in a single lump sum
during the fiscal year specified by the eligible peanut quota holder.
(d) PAYMENT AMOUNT- The amount of the payment for a fiscal year to an
eligible peanut quota holder under a contract shall be equal to the product
obtained by multiplying--
(2) the number of pounds of quota with respect to which the person
qualifies as a peanut quota holder under subsection (f).
(e) ASSIGNMENT OF PAYMENTS- The provisions of section 8(g) of the Soil
Conservation and Domestic Allotment Act (16 U.S.C. 590h(g)), relating to
assignment of payments, shall apply to the payments made under the contracts.
A person making an assignment of the payment, or the assignee, shall provide
the Secretary with notice, in such manner as the Secretary may require, of any
assignment made under this subsection.
(f) ELIGIBLE PEANUT QUOTA HOLDER-
(1) IN GENERAL- Except as otherwise provided in this subsection, the
Secretary shall consider a person to be an eligible peanut quota holder for
the purposes of this section if the person, as of the date of enactment of
this Act, owned a farm that, also as of that date, was eligible for a
permanent peanut quota under section 358-1(b) of the Agricultural Adjustment
Act of 1938 (7 U.S.C. 1358-1(b)), irrespective of temporary leases,
transfers of quotas for seed, or quotas for experimental purposes.
(2) EFFECT OF PURCHASE CONTRACT- If there was a written contract for the
purchase of all or a portion of a farm described in paragraph (1) as of the
date of enactment of this Act and the parties to the sale are unable to
agree to the disposition of eligibility for payments under this section, the
Secretary, taking into account any incomplete permanent transfer of quota
that has otherwise been agreed to, shall provide for the equitable division
of the payments among the parties by adjusting the determination of who is
the eligible peanut quota holder with respect to particular pounds of the
quota.
(3) EFFECT OF AGREEMENT FOR PERMANENT QUOTA TRANSFER- If the Secretary
determines that there was in existence, as of the date of enactment of this
Act, an agreement for the permanent transfer of quota, but that the transfer
was not completed by that date, the Secretary shall consider the peanut
quota holder to be the party to the agreement who, as of that date, was the
owner of the farm to which the quota was to be transferred.
(4) PROTECTED BASES- A person that owns a farm with a peanut poundage
quota which is protected under a conservation reserve program contract
entered into under section 1231 of the Food Security Act of 1985 (16 U.S.C.
3831) shall be considered to be an eligible quota holder with respect to the
protected poundage.
(5) SECRETARIAL DISCRETION- Notwithstanding the preceding paragraphs,
the Secretary may declare a person to be the eligible peanut quota holder
with respect to certain pounds of quota or otherwise for purposes of this
section if the Secretary considers the declaration is needed to insure a
fair and equitable administration of the payments provided for in this
section, so long as the Secretary does not, in exercising this authority,
effectively increase the total quota in excess of the quota that was
available to all producers for the 2001 crop year for other than seed or
experimental use.
(6) LIMITATION ON QUANTITY OF QUOTA HELD- A person shall be considered
an eligible peanut quota holder for purposes of this section only with
respect to that number of permanent pounds that qualifies the person as a
peanut quota holder under one of the preceding paragraphs. The determination
of the peanut poundage amount for which the person qualifies shall be made
based on the 2001 crop quota levels and shall take into account sales of the
farm that occurred before the date of enactment of this Act and any
permanent transfers of quota that took place before that date, consistent
with the preceding paragraphs. The Secretary shall not take into account, or
allow eligibility for, quotas for seed, granted as experimental quotas, or
obtained by temporary lease or transfer.
(g) SUCCESSIONS IN PAYMENT ELIGIBILITY AND ATTACHMENT OF ELIGIBILITY TO
PERSONS-
(1) ELIGIBILITY ATTACHES TO PERSONS- Once a person is eligible for
payments under this section, as determined under subsection (f), the
continued eligibility of the person for the payments does not run with a
farm, but shall remain with the person for the term of this section
irrespective of whether the person sells, or continues to have an interest
in, the farm that had the quota that qualified the person as an eligible
peanut quota holder under subsection (f) and irrespective of whether the
person has a continuing interest in the production of peanuts.
(2) SUCCESSION- If a person eligible for payments under this section
dies, in the case of an individual, or ceases to exist, in the case of other
persons, the payment eligibility of the person shall pass to the person's
personal or organizational successor, as determined by the Secretary.
(h) 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,'.
SEC. 1310. REPEAL OF SUPERSEDED PRICE SUPPORT AUTHORITY AND EFFECT OF
REPEAL.
(a) REPEAL OF PRICE SUPPORT AUTHORITY-
(1) IN GENERAL- Section 155 of the Federal Agriculture Improvement and
Reform Act of 1996 (7 U.S.C. 7271) is repealed.
(2) CONFORMING AMENDMENTS- The Agricultural Act of 1949 (7 U.S.C. 1441
et seq.) is amended--
(A) in section 101(b) (7 U.S.C. 1441(b)), by striking `and peanuts';
and
(B) in section 408(c) (7 U.S.C. 1428(c)), by striking
`peanuts,'.
(3) TECHNICAL AMENDMENT- 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'.
(b) DISPOSAL- Notwithstanding any other provision of law or previous
declaration made by the Secretary, the Secretary shall ensure that the
disposal of all peanuts for which a loan for the 2001 crop of peanuts was made
under section 155 of the Federal Agriculture Improvement and Reform Act of
1996 (7 U.S.C. 7271) before the date of enactment of this Act is carried out
in a manner that prevents price disruptions in the domestic and international
markets for peanuts.
(c) TREATMENT OF CROP INSURANCE POLICIES FOR 2002 CROP YEAR-
(1) APPLICABILITY- This subsection shall apply for the 2002 crop year
only notwithstanding any other provision of law or crop insurance
policy.
(2) PRICE ELECTION- The nonquota price election for segregation I, II,
and III peanuts shall be 17.75 cents per pound and shall be used for all
aspects of the policy relating to the calculations of premium, liability,
and indemnities.
(3) QUALITY ADJUSTMENT- For the purposes of quality adjustment only, the
average support price per pound of peanuts shall be a price equal to 17.75
cents per pound. Quality under the crop insurance policy for peanuts shall
be adjusted under procedures issued by the Federal Crop Insurance
Corporation.
Subtitle D--Sugar
SEC. 1401. SUGAR PROGRAM.
(a) EXTENSION AND MODIFICATION OF EXISTING SUGAR PROGRAM- Section 156 of
the Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7272) is
amended to read as follows:
`SEC. 156. SUGAR PROGRAM.
`(a) SUGARCANE- The Secretary shall make loans available to processors of
domestically grown sugarcane at a rate equal to 18 cents per pound for raw
cane sugar.
`(b) SUGAR BEETS- The Secretary shall make loans available to processors
of domestically grown sugar beets at a rate equal to 22.9 cents per pound for
refined beet sugar.
`(c) LOAN RATE ADJUSTMENTS-
`(1) IN GENERAL- The Secretary may reduce the loan rate specified in
subsection (a) for domestically grown sugarcane and subsection (b) for
domestically grown sugar beets if the Secretary determines that negotiated
reductions in export subsidies and domestic subsidies provided for sugar of
other major sugar growing, producing, and exporting countries in the
aggregate exceed the commitments made as part of the Agreement on
Agriculture.
`(2) EXTENT OF REDUCTION- The Secretary shall not reduce the loan rate
under subsection (a) or (b) below a rate that provides an equal measure of
support to that provided by other major sugar growing, producing, and
exporting countries, based on an examination of both domestic and export
subsidies subject to reduction in the Agreement on Agriculture.
`(3) ANNOUNCEMENT OF REDUCTION- The Secretary shall announce any loan
rate reduction to be made under this subsection as far in advance as is
practicable.
`(4) DEFINITIONS- In this subsection:
`(A) AGREEMENT ON AGRICULTURE- The term `Agreement on Agriculture'
means the Agreement on Agriculture referred to in section 101(d)(2) of the
Uruguay Round Agreements Act (19 U.S.C. 3511(d)(2)), or any amendatory or
successor agreement.
`(B) MAJOR SUGAR COUNTRIES- The term `major sugar growing, producing,
and exporting countries' means--
`(i) the countries of the European Union; and
`(ii) the 10 foreign countries not covered by subparagraph (A) that
the Secretary determines produce the greatest quantity of
sugar.
`(1) IN GENERAL- A loan under this section during any fiscal year shall
be made available not earlier than the beginning of the fiscal year and
shall mature at the earlier of--
`(A) the end of the 9-month period beginning on the first day of the
first month after the month in which the loan is made; or
`(B) the end of the fiscal year in which the loan is made.
`(2) SUPPLEMENTAL LOANS- In the case of a loan made under this section
in the last 3 months of a fiscal year, the processor may repledge the sugar
as collateral for a second loan in the subsequent fiscal year, except that
the second loan shall--
`(A) be made at the loan rate in effect at the time the second loan is
made; and
`(B) mature in 9 months less the quantity of time that the first loan
was in effect.
`(e) LOAN TYPE; PROCESSOR ASSURANCES-
`(1) NONRECOURSE LOANS- The Secretary shall carry out this section
through the use of nonrecourse loans.
`(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.
`(iii) EFFECT OF DISASTER- The Secretary may not bar a beet sugar
processor from eligibility to obtain a loan under this section because
of the failure of the processor to provide the appropriate minimum
payment established under this subsection if the failure--
`(I) occurred during a crop year prior to the date of enactment of
the Farm Security and Rural Investment Act of 2002; and
`(II) was related, at least in part, to the effects of a natural
disaster, including damage from freeze.
`(3) ADMINISTRATION- The Secretary may not impose or enforce any
prenotification requirement, or similar administrative requirement not
otherwise in effect on the date of enactment of the Farm Security and Rural
Investment Act of 2002, that has the effect of preventing a processor from
electing to forfeit the loan collateral (of an acceptable grade and quality)
on the maturity of the loan.
`(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.
`(6) TERM OF LOAN- The term of a loan made under this subsection for a
quantity of in-process sugars and syrups, when combined with the term of a
loan made with respect to the raw cane sugar or refined beet sugar derived
from the in-process sugars and syrups, may not exceed 9 months, consistent
with subsection (d).
`(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.
`(h) INFORMATION REPORTING-
`(1) DUTY OF PROCESSORS AND REFINERS TO REPORT- A sugarcane processor,
cane sugar refiner, and sugar beet processor shall furnish the Secretary, on
a monthly basis, such information as the Secretary may require to administer
sugar programs, including the quantity of purchases of sugarcane, sugar
beets, and sugar, and production, importation, distribution, and stock
levels of sugar.
`(2) 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 subparagraph (A) 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.
`(4) PENALTY- Any person willfully failing or refusing to furnish the
information, or furnishing willfully any false information, shall be subject
to a civil penalty of not more than $10,000 for each such violation.
`(5) MONTHLY REPORTS- Taking into consideration the information received
under this subsection, the Secretary shall publish on a monthly basis
composite data on production, imports, distribution, and stock levels of
sugar.
`(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
Secretary, 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 and sugar-containing products under
those programs.
`(j) EFFECTIVE PERIOD- This section shall be effective only for the 1996
through 2007 crops of sugar beets and sugarcane.'.
(b) EFFECTIVE DATE OF ASSESSMENT TERMINATION- Subsection (f) of section
156 of the Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C.
7272(f)), as in effect immediately before the enactment of the Farm Security
and Rural Investment Act of 2002, is deemed to have been repealed effective as
of October 1, 2001.
(c) 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. 1402. STORAGE FACILITY LOANS.
(a) IN GENERAL- Notwithstanding any other provision of law and as soon as
practicable after the date of enactment of this Act, 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 described in subsection
(a) 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 described in subsection (a)
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. 1403. FLEXIBLE MARKETING ALLOTMENTS FOR SUGAR.
Part VII of subtitle B of title III of the Agricultural Adjustment Act of
1938 (7 U.S.C. 359aa et seq.) is amended to read as follows:
`PART VII--FLEXIBLE MARKETING ALLOTMENTS FOR SUGAR
`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.
`SEC. 359b. FLEXIBLE MARKETING ALLOTMENTS FOR SUGAR.
`(1) IN GENERAL- Not later than August 1 before the beginning of each of
the 2002 through 2007 crop years, the Secretary shall estimate--
`(A) the quantity of sugar that will be consumed in the United States
during the crop year;
`(B) the quantity of sugar that would provide for reasonable carryover
stocks;
`(C) the quantity of sugar that will be available from carry-in stocks
for consumption in the United States during the crop year;
`(D) the quantity of sugar that will be available from the domestic
processing of sugarcane and sugar beets; and
`(E) the quantity of sugars, syrups, and molasses that will be
imported for human consumption or to be used for the extraction of sugar
for human consumption in the United States during the crop year, whether
such articles are under a tariff-rate quota or are in excess or outside of
a tariff-rate quota.
`(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.
`(3) REESTIMATES- The Secretary shall make reestimates of sugar
consumption, stocks, production, and imports for a crop year as necessary,
but no later than the beginning of each of the second through fourth
quarters of the crop year.
`(1) IN GENERAL- By the beginning of each crop year, the Secretary shall
establish for that crop 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).
`(2) PRODUCTS- The Secretary may include sugar products, whose majority
content is sucrose for human consumption, derived from sugarcane, sugar
beets, molasses, or sugar in the allotments under paragraph (1) if the
Secretary determines it to be appropriate for purposes of this part.
`(1) IN GENERAL- During any crop year or portion thereof for which
marketing allotments have been established, no processor of sugar beets or
sugarcane shall market a quantity of sugar in excess of the allocation
established for such processor, except to enable another processor to
fulfill an allocation established for such other processor or to facilitate
the exportation of such sugar.
`(2) CIVIL PENALTY- Any processor who knowingly violates paragraph (1)
shall be liable to the Commodity Credit Corporation for a civil penalty in
an amount equal to 3 times the United States market value, at the time of
the commission of the violation, of that quantity of sugar involved in the
violation.
`(3) DEFINITION OF MARKET- For purposes of this part, the term `market'
shall mean to sell or otherwise dispose of in commerce in the United States
(including the forfeiture of sugar under the loan program for sugar under
section 156 of the Federal Agriculture Improvement and Reform Act of 1996 (7
U.S.C. 7272) and, with respect to any integrated processor and refiner, the
movement of raw cane sugar into the refining process).
`SEC. 359c. ESTABLISHMENT OF FLEXIBLE MARKETING ALLOTMENTS.
`(a) IN GENERAL- The Secretary shall establish flexible marketing
allotments for sugar for any crop year in which the allotments are required
under section 359b(b) in accordance with this section.
`(b) OVERALL ALLOTMENT QUANTITY-
`(1) IN GENERAL- The Secretary shall establish the overall quantity of
sugar to be allotted for the crop year (in this part referred to as the
`overall allotment quantity') by deducting from the sum of the estimated
sugar consumption and reasonable carryover stocks (at the end of the crop
year) for the crop year, as determined under section 359b(a)--
`(A) 1,532,000 short tons, raw value; and
`(B) carry-in stocks of sugar, including sugar in Commodity Credit
Corporation inventory.
`(2) ADJUSTMENT- The Secretary shall adjust the overall allotment
quantity to avoid the forfeiture of sugar to the Commodity Credit
Corporation.
`(c) MARKETING ALLOTMENT FOR SUGAR DERIVED FROM SUGAR BEETS AND SUGAR
DERIVED FROM SUGARCANE- The overall allotment quantity for the crop year shall
be allotted between--
`(1) sugar derived from sugar beets by establishing a marketing
allotment for a crop year at a quantity equal to the product of multiplying
the overall allotment quantity for the crop year by 54.35 percent; and
`(2) sugar derived from sugarcane by establishing a marketing allotment
for a crop year at a quantity equal to the product of multiplying the
overall allotment quantity for the crop year by 45.65 percent.
`(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.
`(e) STATE CANE SUGAR ALLOTMENTS-
`(1) IN GENERAL- The allotment for sugar derived from sugarcane shall be
further allotted, among the 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 as provided in this subsection
and section 359d(b)(1)(D).
`(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.
`(f) FILLING CANE SUGAR ALLOTMENTS- Except as provided in section 359e, a
State cane sugar allotment established under subsection (e) for a crop year
may be filled only with sugar processed from sugarcane grown in the State
covered by the allotment.
`(g) ADJUSTMENT OF MARKETING ALLOTMENTS-
`(1) IN GENERAL- The Secretary shall, based on reestimates under section
359b(a)(3), adjust upward or downward marketing allotments in a fair and
equitable manner, as the Secretary determines appropriate, to reflect
changes in estimated sugar consumption, stocks, production, or
imports.
`(2) ALLOCATION TO PROCESSORS- In the case of any increase or decrease
in an allotment, each allocation to a processor of the allotment under
section 359d, and each proportionate share established with respect to the
allotment under section 359f(c), shall be increased or decreased by the same
percentage that the allotment is increased or decreased.
`(3) CARRY-OVER OF REDUCTIONS- Whenever a marketing allotment for a crop
year is required to be reduced during the crop year under this subsection,
if, at the time of the reduction, the quantity of sugar marketed exceeds the
processor's reduced allocation, the allocation of an allotment next
established for the processor shall be reduced by the quantity of the excess
sugar marketed.
`(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) (excluding any imports attributable to
reassignment under paragraph (1)(D) or (2)(C) of section 359e(b)), 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).
`SEC. 359d. ALLOCATION OF MARKETING ALLOTMENTS.
`(a) ALLOCATION TO PROCESSORS- Whenever marketing allotments are
established for a crop year under section 359c, in order to afford all
interested persons an equitable opportunity to market sugar under an
allotment, the Secretary shall allocate each such allotment among the
processors covered by the allotment.
`(A) IN GENERAL- The Secretary shall make allocations for cane sugar
after a hearing, if requested by the affected sugarcane processors and
growers, and on such notice as the Secretary by regulation may prescribe,
in such manner and in such quantities as to provide a fair, efficient, and
equitable distribution of the allocations under this paragraph. Each such
allocation shall be subject to adjustment under section 359c(g).
`(B) MULTIPLE PROCESSOR STATES- Except as provided in subparagraphs
(C) and (D), 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.
`(C) TALISMAN PROCESSING FACILITY- In the case of allotments under
subparagraph (B) attributable to the operations of the Talisman processing
facility before the date of enactment of this subparagraph, the Secretary
shall allocate the allotment among processors in the State under
subparagraph (A) in accordance with the agreements of March 25 and 26,
1999, between the affected processors and the Secretary of the
Interior.
`(D) 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 subparagraphs (B) and (D), the
Secretary, on application of any processor that begins processing
sugarcane on or after the date of enactment of this subparagraph, 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
subparagraph shall not exceed--
`(I) in the case of the first crop year of operation of a new
processor, 50,000 short tons (raw value); and
`(II) in the case of each subsequent crop year of operation of the
new processor, a quantity established by the Secretary in accordance
with this subparagraph and the criteria described in subparagraph (B)
or (D), as applicable.
`(iv) NEW ENTRANT STATES-
`(I) IN GENERAL- Notwithstanding subparagraphs (A) and (C) of
section 359c(e)(3), to accommodate an allocation under clause (i) to a
new processor located in a new entrant mainland State, the Secretary
shall provide the new entrant mainland State with an
allotment.
`(II) 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 subparagraph, 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 subparagraph
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 subparagraph may be applicable to any individual sugar
processing facility.
`(F) 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 is 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.
`(A) IN GENERAL- Except as otherwise provided in this paragraph 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 paragraph.
`(B) QUANTITY- The quantity of an allocation made for a beet sugar
processor for a crop year under subparagraph (A) 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 subparagraphs (C) and (D)) bears to
the total of the adjusted weighted average quantities of beet sugar
produced by all processors (as so determined).
`(C) WEIGHTED AVERAGE QUANTITY- Subject to subparagraph (D), 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 subparagraph (C) if the Secretary
determines that the processor--
`(I) during the 1996 through 2000 crop years, opened a sugar beet
processing factory;
`(II) during the 1998 through 2000 crop years, closed a sugar beet
processing factory;
`(III) during the 1998 through 2000 crop years, constructed a
molasses desugarization facility; or
`(IV) during the 1998 through 2000 crop years, 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 subparagraph (C) shall be--
`(I) 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 subparagraph) for each
sugar beet processing factory that is opened by the
processor;
`(II) 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 subparagraph) for each
sugar beet processing factory that is closed by the
processor;
`(III) 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 subparagraph) for each
molasses desugarization facility that is constructed by the processor;
and
`(IV) 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
subparagraph).
`(E) 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.
`(F) 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 subparagraph
(E).
`(G) SALE OF FACTORIES OF A PROCESSOR TO ANOTHER PROCESSOR-
`(i) IN GENERAL- Subject to subparagraphs (E) and (F), 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 crop
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 clause (i) shall apply--
`(I) during the remainder of the crop year during which the sale
described in clause (i) occurs (referred to in this subparagraph as
the `initial crop year'); and
`(II) each subsequent crop year (referred in this subparagraph as
a `subsequent crop year'), subject to clause (iii).
`(iii) SUBSEQUENT CROP YEARS-
`(I) IN GENERAL- The assignment of the allocation under clause (i)
shall apply during each subsequent crop year unless the acquired
factory or factories continue in operation for less than the initial
crop year and the first subsequent crop year.
`(II) REASSIGNMENT- If the acquired factory or factories do not
continue in operation for the complete initial crop year and the first
subsequent crop 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 of the purchased factory or factories for the
initial crop year or a subsequent crop year, the remainder of the
transferred allocation may be filled by beet sugar produced by the buyer
from other factories of the buyer.
`(H) NEW ENTRANTS STARTING PRODUCTION OR REOPENING FACTORIES-
`(i) IN GENERAL- Except as provided by clause (ii), if an individual
or entity that does not have an allocation of beet sugar under this part
(referred to in this paragraph as a `new entrant') starts processing
sugar beets after the date of enactment of this subparagraph, or
acquires and reopens a factory that produced beet sugar during previous
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.
`(ii) EXCEPTION- If a new entrant acquires and reopens a factory
that previously produced beet sugar from sugar beets and from sugar beet
molasses but the factory last processed sugar beets during the 1997 crop
year and the new entrant starts to process sugar beets at such factory
after the date of enactment of this clause, the Secretary
shall--
`(I) assign an allocation for beet sugar to the new entrant that
is not less than the greater of 1.67 percent of the total of the
adjusted weighted average quantities of beet sugar produced by all
processors during the 1998 through 2000 crop years as determined under
subsection (b)(2)(C), or 1,500,000 hundredweights; and
`(II) reduce the allocations for beet sugar of all other
processors on a pro rata basis to reflect the new
allocation.
`(I) 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.
`SEC. 359e. REASSIGNMENT OF DEFICITS.
`(a) ESTIMATES OF DEFICITS- At any time allotments are in effect under
this part, the Secretary, from time to time, shall determine whether (in view
of then-current inventories of sugar, the estimated production of sugar and
expected marketings, and other pertinent factors) any processor of sugarcane
will be unable to market the sugar covered by the portion of the State cane
sugar allotment allocated to the processor and whether any processor of sugar
beets will be unable to market sugar covered by the portion of the beet sugar
allotment allocated to the processor.
`(b) REASSIGNMENT OF DEFICITS-
`(1) CANE SUGAR- If the Secretary determines that any sugarcane
processor who has been allocated a share of a State cane sugar allotment
will be unable to market the processor's allocation of the State's allotment
for the crop year--
`(A) the Secretary first shall reassign the estimated quantity of the
deficit to the allocations for other processors within that State,
depending on the capacity of each other processor to fill the portion of
the deficit to be assigned to it and taking into account the interests of
producers served by the processors;
`(B) if after the reassignments the deficit cannot be completely
eliminated, the Secretary shall reassign the estimated quantity of the
deficit proportionately to the allotments for other cane sugar States,
depending on the capacity of each other State to fill the portion of the
deficit to be assigned to it, with the reassigned quantity to each State
to be allocated among processors in that State in proportion to the
allocations of the processors;
`(C) if after the reassignments the deficit cannot be completely
eliminated, the Secretary shall reassign the estimated quantity of the
deficit to the Commodity Credit Corporation and shall sell such quantity
of sugar from inventories of the Corporation unless the Secretary
determines that such sales would have a significant effect on the price of
sugar; and
`(D) if after the reassignments and sales, the deficit cannot be
completely eliminated, the Secretary shall reassign the remainder to
imports.
`(2) BEET SUGAR- If the Secretary determines that a sugar beet processor
who has been allocated a share of the beet sugar allotment will be unable to
market that allocation--
`(A) the Secretary first shall reassign the estimated quantity of the
deficit to the allotments for other sugar beet processors, depending on
the capacity of each other processor to fill the portion of the deficit to
be assigned to it and taking into account the interests of producers
served by the processors;
`(B) if after the reassignments the deficit cannot be completely
eliminated, the Secretary shall reassign the estimated quantity of the
deficit to the Commodity Credit Corporation and shall sell such quantity
of sugar from inventories of the Corporation unless the Secretary
determines that such sales would have a significant effect on the price of
sugar; and
`(C) if after the reassignments and sales, the deficit cannot be
completely eliminated, the Secretary shall reassign the remainder to
imports.
`(3) CORRESPONDING INCREASE- The allocation of each processor receiving
a reassigned quantity of an allotment under this subsection for a crop year
shall be increased to reflect the reassignment.
`SEC. 359f. PROVISIONS APPLICABLE TO PRODUCERS.
`(a) PROCESSOR ASSURANCES-
`(1) IN GENERAL- If allotments for a crop year are allocated to
processors under section 359d, the Secretary shall obtain from the
processors such assurances as the Secretary considers adequate that the
allocation will be shared among producers served by the processor in a fair
and equitable manner that adequately reflects producers' production
histories.
`(A) IN GENERAL- Any dispute between a processor and a producer, or
group of producers, with respect to the sharing of the allocation to the
processor shall be resolved through arbitration by the Secretary on the
request of either party.
`(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.
`(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.
`(c) PROPORTIONATE SHARES OF CERTAIN ALLOTMENTS-
`(A) STATES AFFECTED- In any case in which a State allotment is
established under section 359c(f) and there are in excess of 250 sugarcane
producers in the State (other than Puerto Rico), the Secretary shall make
a determination under subparagraph (B).
`(B) DETERMINATION- The Secretary shall determine, for each State
allotment described in subparagraph (A), whether the production of
sugarcane, in the absence of proportionate shares, will be greater than
the quantity needed to enable processors to fill the allotment and provide
a normal carryover inventory of sugar.
`(2) ESTABLISHMENT OF PROPORTIONATE SHARES- If the Secretary determines
under paragraph (1) that the quantity of sugarcane produced by producers in
the area covered by a State allotment for a crop year will be in excess of
the quantity needed to enable processors to fill the allotment for the crop
year and provide a normal carryover inventory of sugar, the Secretary shall
establish a proportionate share for each sugarcane-producing farm that
limits the acreage of sugarcane that may be harvested on the farm for sugar
or seed during the crop year the allotment is in effect as provided in this
subsection. Each such proportionate share shall be subject to adjustment
under paragraph (7) and section 359c(g).
`(3) METHOD OF DETERMINING- For purposes of determining proportionate
shares for any crop of sugarcane:
`(A) The Secretary shall establish the State's per-acre yield goal for
a crop of sugarcane at a level (not less than the average per-acre yield
in the State for the 2 highest years from among the 1999, 2000, and 2001
crop years, as determined by the Secretary) that will ensure an adequate
net return per pound to producers in the State, taking into consideration
any available production research data that the Secretary considers
relevant.
`(B) The Secretary shall adjust the per-acre yield goal by the average
recovery rate of sugar produced from sugarcane by processors in the
State.
`(C) The Secretary shall convert the State allotment for the crop year
involved into a State acreage allotment for the crop by dividing the State
allotment by the per-acre yield goal for the State, as established under
subparagraph (A) and as further adjusted under subparagraph (B).
`(D) The Secretary shall establish a uniform reduction percentage for
the crop by dividing the State acreage allotment, as determined for the
crop under subparagraph (C), by the sum of all adjusted acreage bases in
the State, as determined by the Secretary.
`(E) The uniform reduction percentage for the crop, as determined
under subparagraph (D), shall be applied to the acreage base for each
sugarcane-producing farm in the State to determine the farm's
proportionate share of sugarcane acreage that may be harvested for sugar
or seed.
`(4) ACREAGE BASE- For purposes of this subsection, the acreage base for
each sugarcane-producing farm shall be determined by the Secretary, as
follows:
`(A) The acreage base for any farm shall be the number of acres that
is equal to the average of the acreage planted and considered planted for
harvest for sugar or seed on the farm in the 2 highest of the 1999, 2000,
and 2001 crop years.
`(B) Acreage planted to sugarcane that producers on a farm were unable
to harvest to sugarcane for sugar or seed because of drought, flood, other
natural disaster, or other condition beyond the control of the producers
may be considered as harvested for the production of sugar or seed for
purposes of this paragraph.
`(A) IN GENERAL- Whenever proportionate shares are in effect in a
State for a crop of sugarcane, producers on a farm shall not knowingly
harvest, or allow to be harvested, for sugar or seed an acreage of
sugarcane in excess of the farm's proportionate share for the crop year,
or otherwise violate proportionate share regulations issued by the
Secretary under section 359h(a).
`(B) DETERMINATION OF VIOLATION- No producer shall be considered to
have violated subparagraph (A) unless the processor of the sugarcane
harvested by such producer from acreage in excess of the proportionate
share of the farm markets an amount of sugar that exceeds the allocation
of such processor for a crop year.
`(C) CIVIL PENALTY- Any producer on a farm who violates subparagraph
(A) by knowingly harvesting, or allowing to be harvested, an acreage of
sugarcane in excess of the farm's proportionate share shall be liable to
the Commodity Credit Corporation for a civil penalty equal to one and
one-half times the United States market value of the quantity of sugar
that is marketed by the processor of such sugarcane in excess of the
allocation of such processor for the crop year. The Secretary shall
prorate penalties imposed under this subparagraph in a fair and equitable
manner among all the producers of sugarcane harvested from excess acreage
that is acquired by such processor.
`(6) WAIVER- Notwithstanding the preceding subparagraph, the Secretary
may authorize the county and State committees established under section 8(b)
of the Soil Conservation and Domestic Allotment Act (16 U.S.C. 590h(b)) to
waive or modify deadlines and other proportionate share requirements in
cases in which lateness or failure to meet the other requirements does not
affect adversely the operation of proportionate shares.
`(7) ADJUSTMENTS- Whenever the Secretary determines that, because of a
natural disaster or other condition beyond the control of producers that
adversely affects a crop of sugarcane subject to proportionate shares, the
amount of sugarcane produced by producers subject to the proportionate
shares will not be sufficient to enable processors in the State to meet the
State's cane sugar allotment and provide a normal carryover inventory of
sugar, the Secretary may uniformly allow producers to harvest an amount of
sugarcane in excess of their proportionate share, or suspend proportionate
shares entirely, as necessary to enable processors to meet the State
allotment and provide a normal carryover inventory of sugar.
`(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.
`SEC. 359g. SPECIAL RULES.
`(a) TRANSFER OF ACREAGE BASE HISTORY- For the purpose of establishing
proportionate shares for sugarcane farms under section 359f(c), the Secretary,
on application of any producer, with the written consent of all owners of a
farm, may transfer the acreage base history of the farm to any other parcels
of land of the applicant.
`(b) PRESERVATION OF ACREAGE BASE HISTORY- If for reasons beyond the
control of a producer on a farm, the producer is unable to harvest an acreage
of sugarcane for sugar or seed with respect to all or a portion of the
proportionate share established for the farm under section 359f(c), the
Secretary, on the application of the producer and with the written consent of
all owners of the farm, may preserve for a period of not more than 5
consecutive years the acreage base history of the farm to the extent of the
proportionate share involved. The Secretary may permit the proportionate share
to be redistributed to other farms, but no acreage base history for purposes
of establishing acreage bases shall accrue to the other farms by virtue of the
redistribution of the proportionate share.
`(c) REVISIONS OF ALLOCATIONS AND PROPORTIONATE SHARES- The Secretary,
after such notice as the Secretary by regulation may prescribe, may revise or
amend any allocation of a marketing allotment under section 359d, or any
proportionate share established or adjusted for a farm under section 359f(c),
on the same basis as the initial allocation or proportionate share was
required to be established.
`(d) TRANSFERS OF MILL ALLOCATIONS-
`(1) TRANSFER AUTHORIZED- A producer in a proportionate share State,
upon written consent from all crop-share owners (or the representative of
the crop-share owners) of a farm, and from the processing company holding
the applicable allocation for such shares, may deliver sugarcane to another
processing company if the additional delivery, when combined with such other
processing company's existing deliveries, does not exceed the processing
capacity of the company.
`(2) ALLOCATION ADJUSTMENT- Notwithstanding section 359d, the Secretary
shall adjust the allocations of each of such processing companies affected
by a transfer under paragraph (1) to reflect the change in deliveries, based
on the product of--
`(A) the number of acres of proportionate shares being transferred;
and
`(B) the State's per acre yield goal established under section
359f(c)(3).
`SEC. 359h. REGULATIONS; VIOLATIONS; PUBLICATION OF SECRETARY'S
DETERMINATIONS; JURISDICTION OF THE COURTS; UNITED STATES ATTORNEYS.
`(a) REGULATIONS- The Secretary or the Commodity Credit Corporation, as
appropriate, shall issue such regulations as may be necessary to carry out the
authority vested in the Secretary in administering this part.
`(b) VIOLATION- Any person knowingly violating any regulation of the
Secretary issued under subsection (a) shall be subject to a civil penalty of
not more than $5,000 for each violation.
`(c) PUBLICATION IN FEDERAL REGISTER- Each determination issued by the
Secretary to establish, adjust, or suspend allotments under this part shall be
promptly published in the Federal Register and shall be accompanied by a
statement of the reasons for the determination.
`(d) JURISDICTION OF COURTS; UNITED STATES ATTORNEYS-
`(1) JURISDICTION OF COURTS- The several district courts of the United
States are vested with jurisdiction specifically to enforce, and to prevent
and restrain any person from violating, this part or any regulation issued
thereunder.
`(2) UNITED STATES ATTORNEYS- Whenever the Secretary shall so request,
it shall be the duty of the several United States attorneys, in their
respective districts, to institute proceedings to enforce the remedies and
to collect the penalties provided for in this part. The Secretary may elect
not to refer to a United States attorney any violation of this part or
regulation when the Secretary determines that the administration and
enforcement of this part would be adequately served by written notice or
warning to any person committing the violation.
`(e) NONEXCLUSIVITY OF REMEDIES- The remedies and penalties provided for
in this part shall be in addition to, and not exclusive of, any remedies or
penalties existing at law or in equity.
`SEC. 359i. APPEALS.
`(a) IN GENERAL- An appeal may be taken to the Secretary from any decision
under section 359d establishing allocations of marketing allotments, or under
section 359f, by any person adversely affected by reason of any such
decision.
`(1) NOTICE OF APPEAL- Any such appeal shall be taken by filing with the
Secretary, within 20 days after the decision complained of is effective,
notice in writing of the appeal and a statement of the reasons therefor.
Unless a later date is specified by the Secretary as part of the Secretary's
decision, the decision complained of shall be considered to be effective as
of the date on which announcement of the decision is made. The Secretary
shall deliver a copy of any notice of appeal to each person shown by the
records of the Secretary to be adversely affected by reason of the decision
appealed, and shall at all times thereafter permit any such person to
inspect and make copies of appellant's reasons for the appeal and shall on
application permit the person to intervene in the appeal.
`(2) HEARING- The Secretary shall provide each appellant an opportunity
for a hearing before an administrative law judge in accordance with sections
554 and 556 of title 5, United States Code. The expenses for conducting the
hearing shall be reimbursed by the Commodity Credit Corporation.
`(c) SPECIAL APPEAL PROCESS REGARDING BEET SUGAR ALLOCATIONS-
`(1) APPEAL AUTHORIZED- Beginning after the 2006 crop year, a processor
that has an allocation of the beet sugar allotment under this part (referred
to in this subsection as a `petitioner') may file a notice of appeal with
the Secretary regarding the petitioner's beet sugar allocation. Except as
provided in paragraph (2), the Secretary shall consider the appeal if the
notice alleges that any processor that has a beet sugar allocation has
failed to fill at least 82.5 percent of its allocation of the beet sugar
allotment with sugar produced by it or received from the Commodity Credit
Corporation in 2 out of the 3 crop years preceding the crop year in which
the appeal is filed. A processor that is alleged to have failed to fill at
least 82.5 percent of its allocation shall be allowed to fully participate
in the appeal.
`(2) EXCEPTIONS- An appeal under paragraph (1) shall not be based on the
failure of a processor to fill at least 82.5 percent of its allocation
because of drought, flood, hail, or other weather disaster, as determined by
the Secretary. The determination by the Secretary shall not require a formal
disaster declaration.
`(3) RESPONSE TO APPEAL- Upon the petitioner making an appeal to the
Secretary, and upon a review by the Secretary of how processors have filled
their allocations, the Secretary may--
`(A) assign an increased allocation for beet sugar to the petitioner
that provides a fair and equitable distribution of the allocations for
beet sugar, taking into account--
`(i) production history during the period beginning on April 4,
1996, and through the date of enactment of the Farm Security and Rural
Investment Act of 2002;
`(ii) capital investment during that period;
`(iii) increases in United States sugar consumption; and
`(iv) the ability or inability of processors to fill the allocations
they have received under this part; and
`(B) reduce, correspondingly, the allocation for beet sugar of each
processor determined to have failed to fill at least 82.5 percent of its
allocation of the beet sugar allotment as described in paragraph
(1).
`(4) FILING DEADLINE- For purposes of the filing deadline specified in
subsection (b)(1), the 20-day period shall commence on the date on which the
Secretary announces the allocations for the subsequent crop year or October
1, whichever is earlier.
`SEC. 359j. ADMINISTRATION.
`(a) USE OF CERTAIN AGENCIES- In carrying out this part, the Secretary may
use the services of local committees of sugar beet or sugarcane producers,
sugarcane processors, or sugar beet processors, State and county committees
established under section 8(b) of the Soil Conservation and Domestic Allotment
Act (16 U.S.C. 590h(b)), and the departments and agencies of the United States
Government.
`(b) USE OF COMMODITY CREDIT CORPORATION- The Secretary shall use the
services, facilities, funds, and authorities of the Commodity Credit
Corporation to carry out this part.
`SEC. 359k. REALLOCATING SUGAR QUOTA IMPORT SHORTFALLS.
`(a) IN GENERAL- Notwithstanding any other provision of law, on or after
June 1 of each of the 2002 through 2007 calendar years, 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 crop year, and may reallocate the unused quota for that crop year among
qualified supplying countries.
`(b) QUALIFIED SUPPLYING COUNTRY DEFINED- In this section, the term
`qualified supplying country' means one of the following 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 Republic of the 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 Cote D'Ivoire, formerly known as the 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.'.
Subtitle E--Dairy
SEC. 1501. MILK PRICE SUPPORT PROGRAM.
(a) SUPPORT ACTIVITIES- During the period beginning on June 1, 2002, and
ending on December 31, 2007, the Secretary of Agriculture shall support the
price of milk produced in the 48 contiguous States through the purchase of
cheese, butter, and nonfat dry milk produced from the milk.
(b) RATE- During the period specified in subsection (a), the price of milk
shall be supported at a rate equal to $9.90 per hundredweight for milk
containing 3.67 percent butterfat.
(1) UNIFORM PRICES- The support purchase prices under this section for
each of the products of milk (butter, cheese, and nonfat dry milk) announced
by the Secretary shall be the same for all of that product sold by persons
offering to sell the product to the Secretary.
(2) SUFFICIENT PRICES- The purchase prices shall be sufficient to enable
plants of average efficiency to pay producers, on average, a price that is
not less than the rate of price support for milk in effect under subsection
(b).
(d) SPECIAL RULE FOR BUTTER AND NONFAT DRY MILK PURCHASE PRICES-
(1) ALLOCATION OF PURCHASE PRICES- The Secretary may allocate the rate
of price support between the purchase prices for nonfat dry milk and butter
in a manner that will result in the lowest level of expenditures by the
Commodity Credit Corporation or achieve such other objectives as the
Secretary considers appropriate. Not later than 10 days after making or
changing an allocation, the Secretary shall notify the Committee on
Agriculture of the House of Representatives and the Committee on
Agriculture, Nutrition, and Forestry of the Senate of the allocation.
Section 553 of title 5, United States Code, shall not apply with respect to
the implementation of this section.
(2) TIMING OF PURCHASE PRICE ADJUSTMENTS- The Secretary may make any
such adjustments in the purchase prices for nonfat dry milk and butter the
Secretary considers to be necessary not more than twice in each calendar
year.
(e) COMMODITY CREDIT CORPORATION- The Secretary shall carry out the
program authorized by this section through the Commodity Credit
Corporation.
SEC. 1502. NATIONAL DAIRY MARKET LOSS PAYMENTS.
(a) DEFINITIONS- In this section:
(1) CLASS I MILK- The term `Class I milk' means milk (including milk
components) classified as Class I milk under a Federal milk marketing
order.
(2) ELIGIBLE PRODUCTION- The term `eligible production' means milk
produced by a producer in a participating State.
(3) 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.
(4) PARTICIPATING STATE- The term `participating State' means each
State.
(5) PRODUCER- The term `producer' means an individual or entity that
directly or indirectly (as determined by the Secretary)--
(A) shares in the risk of producing milk; and
(B) 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.
(b) PAYMENTS- 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.
(c) AMOUNT- Payments to a producer under this section shall be calculated
by multiplying (as determined by the Secretary)--
(1) the payment quantity for the producer during the applicable month
established under subsection (d);
(2) the amount equal to--
(A) $16.94 per hundredweight; less
(B) the Class I milk price per hundredweight in Boston under the
applicable Federal milk marketing order; by
(1) IN GENERAL- Subject to paragraph (2), the payment quantity for a
producer during the applicable month under this section shall be equal to
the quantity of eligible production marketed by the producer during the
month.
(2) LIMITATION- The payment quantity for all producers on a single dairy
operation during the months of the applicable fiscal year for which the
producers receive payments under subsection (b) shall not exceed 2,400,000
pounds. For purposes of determining whether producers are producers on
separate dairy operations or a single dairy operation, the Secretary shall
apply the same standards as were applied in implementing the dairy program
under section 805 of the Agriculture, Rural Development, Food and Drug
Administration, and Related Agencies Appropriations Act, 2001 (as enacted
into law by Public Law 106-387; 114 Stat. 1549A-50).
(3) RECONSTITUTION- The Secretary shall promulgate regulations to ensure
that a producer does not reconstitute a dairy operation for the sole purpose
of receiving additional payments under this section.
(e) PAYMENTS- A payment under a contract under this section 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.
(f) SIGNUP- The Secretary shall offer to enter into contracts under this
section during the period beginning on the date that is 60 days after the date
of enactment of this Act and ending on September 30, 2005.
(g) DURATION OF CONTRACT-
(1) IN GENERAL- Except as provided in paragraph (2) and subsection (h),
any contract entered into by producers on a dairy farm under this section
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.
(2) VIOLATIONS- If a producer violates the contract, the Secretary
may--
(A) terminate the contract and allow the producer to retain any
payments received under the contract; or
(B) 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.
(h) TRANSITION RULE- In addition to any payment that is otherwise
available under this section, if the producers on a dairy farm enter into a
contract under this section, the Secretary shall make a payment in accordance
with the formula specified in subsection (c) on the quantity of eligible
production of the producer marketed during the period beginning on December 1,
2001, and ending on the last day of the month preceding the month the
producers on the dairy farm entered into the contract.
SEC. 1503. 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
`2007'.
(b) DAIRY INDEMNITY PROGRAM- Section 3 of Public Law 90-484 (7 U.S.C.
450l) is amended by striking `1995' and inserting `2007'.
SEC. 1504. 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. 1505. 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 (as defined in subsection (l)), including
dairy products 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';
(4) by inserting after paragraph (5) (as so designated) the
following:
`(A) INITIAL REPRESENTATION- In making initial appointments to the
Board of importer representatives, the Secretary shall appoint 2 members
who represent importers of dairy products and are subject to assessments
under the order.
`(B) SUBSEQUENT REPRESENTATION- At least once every 3 years after the
initial appointment of importer representatives under subparagraph (A),
the Secretary shall review the average volume of domestic production of
dairy products compared to the average volume of imports of dairy products
into the United States during the previous 3 years and, on the basis of
that review, shall reapportion importer representation on the Board to
reflect the proportional share of the United States market by domestic
production and imported dairy products.
`(C) 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.';
and
(5) in paragraph (8) (as so designated), by striking `is produced' and
inserting `is produced as well as importers of dairy products'.
(c) BUDGETS- Section 113(e) of the Dairy Production Stabilization Act of
1983 (7 U.S.C. 4504(e)) is amended--
(1) by striking `(e)' and inserting:
`(1) PREPARATION AND SUBMISSION- ';
(2) by striking the last sentence; and
(3) by adding at the end the following:
`(2) FOREIGN MARKET EFFORTS- The order shall authorize the Board to
expend in the maintenance and expansion of foreign markets an amount not to
exceed the amount collected from United States producers for a fiscal year.
Of those funds, for each of the 2002 through 2007 fiscal years, the Board's
budget may provide for the expenditure of revenues available to the Board to
develop international markets for, and to promote within such markets, the
consumption of dairy products produced or manufactured in the United
States.'.
(d) 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;
(3) in paragraph (3) (as so designated)--
(A) by inserting `for milk produced in the United States and imported
dairy products' after `The rate of assessment'; and
(B) by inserting before the period at the end the following: `, as
determined by the Secretary'; and
(4) 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.
`(B) TIME FOR PAYMENT- The assessment on imported dairy products shall
be paid by the importer to Customs at the time the entry documents are
filed with Customs. Customs shall remit the assessments to the Board. For
purposes of this subparagraph, the term `importer' includes persons who
hold title to foreign-produced dairy products immediately upon release by
Customs, as well as persons who act on behalf of others, as agents,
brokers, or consignees, to secure the release of dairy products from
Customs.
`(C) USE OF ASSESSMENTS ON IMPORTED DAIRY PRODUCTS- Assessments
collected on imported dairy products shall not be used for foreign market
promotion.'.
(e) 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'.
(f) IMPORTER ELIGIBILITY TO VOTE IN REFERENDUM- Section 116(b) of the
Dairy Promotion Stabilization Act of 1983 (7 U.S.C. 4507(b)) is amended--
(1) in the first sentence--
(A) by inserting after `of producers' the following: `and importers';
and
(B) by inserting after `the producers' the following: `and importers';
and
(2) in the second sentence, by inserting after `commercial use' the
following: `and importers voting in the referendum (who have been engaged in
the importation of dairy products during the same representative period, as
determined by the Secretary)'.
(g) ORDER IMPLEMENTATION AND INTERNATIONAL TRADE OBLIGATIONS- Section 112
of the Dairy Promotion Stabilization Act of 1983 (7 U.S.C. 4503) is amended by
adding at the end the following:
`(d) ORDER IMPLEMENTATION AND INTERNATIONAL TRADE OBLIGATIONS- The
Secretary, in consultation with the United States Trade Representative, shall
ensure that the order is implemented in a manner consistent with the
international trade obligations of the Federal Government.'.
(h) CONFORMING AMENDMENTS TO REFLECT ADDITION OF IMPORTERS- The Dairy
Production Stabilization Act of 1983 is amended--
(1) in section 110(b) (7 U.S.C. 4501(b))--
(A) in the first sentence--
(i) by inserting after `commercial use' the following: `and on
imported dairy products'; and
(ii) by striking `products produced in the United States.' and
inserting `products.'; and
(B) in the second sentence, by inserting after `produce milk' the
following: `or the right of any person to import dairy products';
and
(2) in section 111(d) (7 U.S.C. 4502(d)), by striking `produced in the
United States'.
SEC. 1506. 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. 1507. STUDY OF NATIONAL DAIRY POLICY.
(a) STUDY REQUIRED- The Secretary of Agriculture shall conduct a
comprehensive economic evaluation of the potential direct and indirect effects
of the various elements of the national dairy policy, including an examination
of the effect of the national dairy policy on--
(1) farm price stability, farm profitability and viability, and local
rural economies in the United States;
(2) child, senior, and low-income nutrition programs, including impacts
on schools and institutions participating in the programs, on program
recipients, and other factors; and
(3) the wholesale and retail cost of fluid milk, dairy farms, and milk
utilization.
(b) 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 describing the results of the study required by this
section.
(c) NATIONAL DAIRY POLICY DEFINED- In this section, the term `national
dairy policy' means the dairy policy of the United States as evidenced by the
following policies and programs:
(1) Federal milk marketing orders issued under section 8c of the
Agricultural Adjustment Act (7 U.S.C. 608c), reenacted with amendments by
the Agricultural Marketing Act of 1937.
(2) Interstate dairy compacts (including proposed compacts described in
H.R. 1827 and S. 1157, as introduced in the 107th Congress).
(3) Over-order premiums and State pricing programs.
(4) Direct payments to milk producers.
(5) Federal milk price support program established under section
1401.
(6) Export programs regarding milk and dairy products, such as the dairy
export incentive program established under section 153 of the Food Security
Act of 1985 (15 U.S.C. 713a-14).
SEC. 1508. STUDIES OF EFFECTS OF CHANGES IN APPROACH TO NATIONAL DAIRY
POLICY AND FLUID MILK IDENTITY STANDARDS.
(a) FEDERAL DAIRY POLICY CHANGES- The Secretary of Agriculture shall
conduct a study of the effects of--
(1) terminating all Federal programs relating to price support and
supply management for milk; and
(2) granting the consent of Congress to cooperative efforts by States to
manage milk prices and supply.
(b) FLUID MILK IDENTITY STANDARDS- The Secretary shall conduct 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.
(c) REPORTS- 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 describing the results of the studies required by this
section.
Subtitle F--Administration
SEC. 1601. ADMINISTRATION GENERALLY.
(a) USE OF COMMODITY CREDIT CORPORATION- The Secretary shall use the
funds, facilities, and authorities of the Commodity Credit Corporation to
carry out this title.
(b) DETERMINATIONS BY SECRETARY- A determination made by the Secretary
under this title shall be final and conclusive.
(1) IN GENERAL- Not later than 90 days after the date of the enactment
of this Act, the Secretary and the Commodity Credit Corporation, as
appropriate, shall promulgate such regulations as are necessary to implement
this title.
(2) PROCEDURE- The promulgation of the regulations and administration of
this title shall be made without regard to--
(A) chapter 35 of title 44, United States Code (commonly know as the
`Paperwork Reduction Act');
(B) 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
(C) the notice and comment provisions of section 553 of title 5,
United States Code.
(3) CONGRESSIONAL REVIEW OF AGENCY RULEMAKING- In carrying out this
subsection, the Secretary shall use the authority provided under section 808
of title 5, United States Code.
(d) TREATMENT OF ADVANCE PAYMENT OPTION- The protection that was afforded
producers that had an option to elect to accelerate the receipt of any payment
under a production flexibility contract payable under the Federal Agriculture
Improvement and Reform Act of 1996, as provided by section 525 of Public
106-170 (113 Stat. 1928; 7 U.S.C. 7212 note), shall also apply to the option
to receive--
(1) the advance payment of direct payments and counter-cyclical payments
under subtitle A and subtitle C; and
(2) the single payment of compensation for eligible peanut quota holders
under section 1310.
(e) ADJUSTMENT AUTHORITY RELATED TO URUGUAY ROUND COMPLIANCE-
(1) REQUIRED DETERMINATION; ADJUSTMENT- If the Secretary determines that
expenditures under subtitles A through E 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 Act, will exceed such
allowable levels for any applicable reporting period, the Secretary shall,
to the maximum extent practicable, make adjustments in the amount of such
expenditures during that period to ensure that such expenditures do not
exceed such allowable levels.
(2) CONGRESSIONAL NOTIFICATION- Before making any adjustment under
paragraph (1), the Secretary shall submit to the Committee on Agriculture,
Nutrition, and Forestry of the Senate and the Committee on Agriculture of
the House of Representatives a report describing the determination made
under that paragraph and the extent of the adjustment to be made.
SEC. 1602. SUSPENSION OF PERMANENT PRICE SUPPORT AUTHORITY.
(a) AGRICULTURAL ADJUSTMENT ACT OF 1938- The following provisions of the
Agricultural Adjustment Act of 1938 shall not be applicable to the 2002
through 2007 crops of covered commodities, peanuts, and sugar and shall not be
applicable to milk during the period beginning on the date of enactment of
this Act through December 31, 2007:
(1) Parts II through V of subtitle B of title III (7 U.S.C.
1326-1351).
(2) In the case of upland cotton, section 377 (7 U.S.C. 1377).
(3) Subtitle D of title III (7 U.S.C. 1379a-1379j).
(4) Title IV (7 U.S.C. 1401-1407).
(b) AGRICULTURAL ACT OF 1949- The following provisions of the Agricultural
Act of 1949 shall not be applicable to the 2002 through 2007 crops of covered
commodities, peanuts, and sugar and shall not be applicable to milk during the
period beginning on the date of enactment of this Act and through December 31,
2007:
(1) Section 101 (7 U.S.C. 1441).
(2) Section 103(a) (7 U.S.C. 1444(a)).
(3) Section 105 (7 U.S.C. 1444b).
(4) Section 107 (7 U.S.C. 1445a).
(5) Section 110 (7 U.S.C. 1445e).
(6) Section 112 (7 U.S.C. 1445g).
(7) Section 115 (7 U.S.C. 1445k).
(8) Section 201 (7 U.S.C. 1446).
(9) Title III (7 U.S.C. 1447-1449).
(10) Title IV (7 U.S.C. 1421-1433d), other than sections 404, 412, and
416 (7 U.S.C. 1424, 1429, and 1431).
(11) Title V (7 U.S.C. 1461-1469).
(12) Title VI (7 U.S.C. 1471-1471j).
(c) SUSPENSION OF CERTAIN QUOTA PROVISIONS- The joint resolution entitled
`A joint resolution relating to corn and wheat marketing quotas under the
Agricultural Adjustment Act of 1938, as amended', approved May 26, 1941 (7
U.S.C. 1330 and 1340), shall not be applicable to the crops of wheat planted
for harvest in the calendar years 2002 through 2007.
(d) CONFORMING AMENDMENT- Section 171(a)(1) of the Federal Agriculture
Improvement and Reform Act of 1996 (7 U.S.C. 7301(a)(1)) is amended by
striking `2002' the first place appears and inserting `2001'.
SEC. 1603. PAYMENT LIMITATIONS.
(a) LIMITATION ON AMOUNTS RECEIVED- Section 1001 of the Food Security Act
of 1985 (7 U.S.C. 1308) is amended by striking the section heading, `SEC.
1001.', and all that follows through the end of paragraph (4) and inserting
the following:
`SEC. 1001. PAYMENT LIMITATIONS.
`(a) DEFINITIONS- In this section:
`(1) COVERED COMMODITY- The term `covered commodity' has the meaning
given that term in section 1001 of the Farm Security and Rural Investment
Act of 2002.
`(2) LOAN COMMODITY- The term `loan commodity' has the meaning given
that term in section 1001 of the Farm Security and Rural Investment Act of
2002, except that the term does not include wool, mohair, or honey.
`(3) SECRETARY- The term `Secretary' means the Secretary of
Agriculture.
`(b) LIMITATION ON DIRECT PAYMENTS-
`(1) COVERED COMMODITIES- The total amount of direct payments made to a
person during any crop year under subtitle A of title I of the Farm Security
and Rural Investment Act of 2002 for 1 or more covered commodities may not
exceed $40,000.
`(2) PEANUTS- The total amount of direct payments made to a person
during any crop year under subtitle C of title I of the Farm Security and
Rural Investment Act of 2002 may not exceed $40,000.
`(c) LIMITATION ON COUNTER-CYCLICAL PAYMENTS-
`(1) COVERED COMMODITIES- The total amount of counter-cyclical payments
made to a person during any crop year under subtitle A of title I of the
Farm Security and Rural Investment Act of 2002 for 1 or more covered
commodities may not exceed $65,000.
`(2) PEANUTS- The total amount of counter-cyclical payments made to a
person during any crop year under subtitle C of title I of the Farm Security
and Rural Investment Act of 2002 may not exceed $65,000.
`(d) LIMITATION ON MARKETING LOAN GAINS AND LOAN DEFICIENCY PAYMENTS-
`(1) LOAN COMMODITIES- The total amount of the following gains and
payments that a person may receive during any crop year may not exceed
$75,000:
`(A) Any gain realized by a producer from repaying a marketing
assistance loan for 1 or more loan commodities under subtitle B of title I
of the Farm Security and Rural Investment Act of 2002 at a lower level
than the original loan rate established for the loan commodity under that
subtitle.
`(B) Any loan deficiency payments received for 1 or more loan
commodities under that subtitle.
`(2) OTHER COMMODITIES- The total amount of the following gains and
payments that a person may receive during any crop year may not exceed
$75,000:
`(A) Any gain realized by a producer from repaying a marketing
assistance loan for peanuts, wool, mohair, or honey under subtitle B or C
of title I of the Farm Security and Rural Investment Act of 2002 at a
lower level than the original loan rate established for the commodity
under those subtitles.
`(B) Any loan deficiency payments received for peanuts, wool, mohair,
and honey under those subtitles.'.
(b) CLERICAL AND CONFORMING AMENDMENTS TO SECTION 1001- Section 1001 of
the Food Security Act of 1985 (7 U.S.C. 1308) is amended--
(A) by striking `(5)' and inserting `(e) DEFINITION OF PERSON-
'
(B) by redesignating subparagraphs (A) through (E) as paragraphs (1)
through (5), respectively;
(C) in paragraph (1), as so redesignated--
(i) by redesignating clauses (i) and (ii) as subparagraphs (A) and
(B), respectively; and
(ii) by striking the second sentence; and
(D) in paragraph (2), as so redesignated--
(i) by redesignating clause (i) as subparagraph (A) and, in such
subparagraph (as so redesignated)--
(I) by striking `subparagraph (A), subject to clause (ii)' and
inserting `paragraph (1), subject to subparagraph (B)';
and
(II) by redesignating subclauses (I), (II), and (III), as clauses
(i), (ii), and (iii), respectively;
(ii) by redesignating clause (ii) as subparagraph (B) and, in such
subparagraph (as so redesignated), by redesignating subclauses (I),
(II), and (III), as clauses (i), (ii), and (iii), respectively;
and
(iii) by redesignating clause (iii) as subparagraph (C) and, in such
subparagraph (as so redesignated)--
(I) by striking `as described in paragraphs (1) and (2)' and
inserting `as described in subsections (b), (c), and (d)';
and
(II) by redesignating subclauses (I) and (II) as clauses (i) and
(ii), respectively;
(2) in paragraph (6), by striking `(6)' and inserting `(f) PUBLIC
SCHOOLS- '; and
(3) in paragraph (7), by striking `(7)' and inserting `(g) TIME LIMITS;
RELIANCE- '.
(c) CONFORMING AMENDMENTS TO OTHER LAWS-
(1) Section 1001A of the Food Security Act of 1985 (7 U.S.C. 1308-1) is
amended--
(A) in subsections (a)(1) and (b)(2)(B), by striking `section
1001(5)(B)(i)(II)' and inserting `section 1001(e)(2)(A)(ii)'; and
(B) in subsections (a)(1) and (b)(1), by striking `section
1001(5)(B)(i)' and inserting `section 1001(e)(2)(A)'; and
(2) Section 1001B of the Food Security Act of 1985 (7 U.S.C. 1308-2) is
amended by striking `as described in paragraphs (1) and (2)' and inserting
`as described in subsections (b), (c), and (d)'.
(3) Section 1001C(a) of the Food Security Act of 1985 (7 U.S.C.
1308-3(a)) is amended by inserting `title I of the Farm Security and Rural
Investment Act of 2002,' after `made available under'.
(d) TRANSITION- Section 1001 of the Food Security Act of 1985 (7 U.S.C.
1308), as in effect on the day before the date of the enactment of this Act,
shall continue to apply with respect to the 2001 crop of any covered
commodity.
SEC. 1604. ADJUSTED GROSS INCOME LIMITATION.
The Food Security Act of 1985 is amended--
(1) by redesignating section 1001D (7 U.S.C. 1308-4) and section 1001E
(7 U.S.C. 1308-5) as sections 1001E and 1001F, respectively; and
(2) by inserting after section 1001C (7 U.S.C. 1308-3) the
following:
`SEC. 1001D. ADJUSTED GROSS INCOME LIMITATION.
`(a) DEFINITION OF AVERAGE ADJUSTED GROSS INCOME-
`(1) IN GENERAL- In this section, the term `average adjusted gross
income', with respect to an individual or entity (for purposes of this
section, as defined in section 1001(e)(2)(A)(ii)), means the 3-year average
of the adjusted gross income or comparable measure of the individual or
entity over the 3 preceding tax years, as determined by the Secretary.
`(2) SPECIAL RULES FOR CERTAIN INDIVIDUALS AND ENTITIES- In the case of
an entity that is not required to file a Federal income tax return or an
individual or entity that did not have taxable income in 1 or more of the
tax years used to determine the average under paragraph (1), the Secretary
shall provide, by regulation, a method for determining the average adjusted
gross income of the individual or entity for purposes of this section.
`(1) IN GENERAL- Notwithstanding any other provision of law, an
individual or entity shall not be eligible to receive any benefit described
in paragraph (2) during a crop year if the average adjusted gross income of
the individual or entity exceeds $2,500,000, unless not less than 75 percent
of the average adjusted gross income of the individual or entity is derived
from farming, ranching, or forestry operations, as determined by the
Secretary.
`(2) COVERED BENEFITS- Paragraph (1) applies with respect to the
following:
`(A) A direct payment or counter-cyclical payment under subtitle A or
C of title I of the Farm Security and Rural Investment Act of
2002.
`(B) A marketing loan gain or payment described in section 1001(d) of
this Act.
`(C) A payment under any program under title XII of this Act or title
II of the Farm Security and Rural Investment Act of 2002.
`(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 the limitation specified
in that subsection; 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 benefit described in
subsection (b)(2) made in a crop year to an entity, general partnership, or
joint venture, the amount of the benefit shall be reduced by an amount that is
commensurate with the direct and indirect ownership interest in the entity,
general partnership, or joint venture of each individual who has an average
adjusted gross income in excess of the limitation specified in subsection (b)
for the average of the 3 preceding crop years.
`(e) EFFECTIVE PERIOD- This section shall apply only during the 2003
through 2007 crop years.'.
SEC. 1605. COMMISSION ON APPLICATION OF PAYMENT LIMITATIONS.
(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 section as the `Commission').
(b) DUTIES- The Commission shall conduct a study on the potential impacts
of further payment limitations on the receipt of direct payments,
counter-cyclical payments, and marketing loan gains and loan deficiency
payments on--
(4) agribusiness infrastructure;
(5) planting decisions of producers affected; and
(6) supply and prices of covered commodities, loan commodities,
specialty crops (including fruits and vegetables), and other agricultural
commodities.
(1) COMPOSITION- The Commission shall be composed of 10 members as
follows:
(A) 3 members appointed by the Secretary.
(B) 3 members appointed by the Committee on Agriculture, Nutrition,
and Forestry of the Senate.
(C) 3 members appointed by the Committee on Agriculture of the House
of Representatives.
(D) The Chief Economist of the Department of Agriculture.
(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.
(A) TERM- A member shall be appointed for the life of the
Commission.
(B) VACANCIES- A vacancy on the Commission--
(i) shall not affect the powers of the Commission; and
(ii) shall be filled in the same manner as the original appointment
was made.
(5) 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.
(d) 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.
(e) CHAIRPERSON- The Secretary shall appoint 1 of the members of the
Commission to serve as Chairperson of the Commission.
(f) 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 study required
by subsection (b), including such recommendations as the Commission considers
appropriate.
(g) 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 section.
(h) INFORMATION FROM FEDERAL AGENCIES- The Commission may secure directly
from a Federal agency such information as the Commission considers necessary
to carry out this section. On request of the Chairperson of the Commission,
the head of the agency shall provide the information to the Commission.
(i) 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.
(j) 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.
(k) 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.
(3) 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.
(l) 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. 1606. ADJUSTMENTS OF LOANS.
Section 162(b) of the Federal Agriculture Improvement and Reform Act of
1996 (7 U.S.C. 7282(b)) is amended by striking `this title' and inserting
`this title and title I of the Farm Security and Rural Investment Act of
2002'.
SEC. 1607. PERSONAL LIABILITY OF PRODUCERS FOR DEFICIENCIES.
Section 164 of the Federal Agriculture Improvement and Reform Act of 1996
(7 U.S.C. 7284) is amended by striking `this title' each places it appears and
inserting `this title and title I of the Farm Security and Rural Investment
Act of 2002'.
SEC. 1608. EXTENSION OF EXISTING ADMINISTRATIVE AUTHORITY REGARDING
LOANS.
Section 166 of the Federal Agriculture Improvement and Reform Act of 1996
(7 U.S.C. 7286) is amended--
(1) in subsection (a), by striking `subtitle C' and inserting `subtitle
C of this title and subtitle B and C of title I of the Farm Security and
Rural Investment Act of 2002'; and
(2) in subsection (c)(1), by striking `subtitle C' and inserting
`subtitle C of this title and subtitle B and C of title I of the Farm
Security and Rural Investment Act of 2002'.
SEC. 1609. 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. 1610. 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 `60,000,000';
and
(2) in clause (ii), by striking `15 percent' and inserting `10
percent'.
SEC. 1611. 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 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. 1612. ASSIGNMENT OF PAYMENTS.
The provisions of section 8(g) of the Soil Conservation and Domestic
Allotment Act (16 U.S.C. 590h(g)), relating to assignment of payments, shall
apply to payments made under the authority of this Act. The producer making
the assignment, or the assignee, shall provide the Secretary with notice, in
such manner as the Secretary may require, of any assignment made under this
section.
SEC. 1613. EQUITABLE RELIEF FROM INELIGIBILITY FOR LOANS, PAYMENTS, OR OTHER
BENEFITS.
(a) DEFINITIONS- In this section:
(1) AGRICULTURAL COMMODITY- The term `agricultural commodity' means any
agricultural commodity, food, feed, fiber, or livestock that is subject to a
covered program.
(A) IN GENERAL- The term `covered program' means--
(i) a program administered by the Secretary under which price or
income support, or production or market loss assistance, is provided to
producers of agricultural commodities; and
(ii) a conservation program administered by the
Secretary.
(B) EXCLUSIONS- The term `covered program' does not include--
(i) an agricultural credit program carried out under the
Consolidated Farm and Rural Development Act (7 U.S.C. 1921 et seq.);
or
(ii) the crop insurance program carried out under the Federal Crop
Insurance Act (7 U.S.C. 1501 et seq.).
(3) PARTICIPANT- The term `participant' means a participant in a covered
program.
(4) STATE CONSERVATIONIST- The term `State Conservationist' means the
State Conservationist with respect to a program administered by the Natural
Resources Conservation Service.
(5) STATE DIRECTOR- The term `State Director' means the State Executive
Director of the Farm Service Agency with respect to a program administered
by the Farm Service Agency.
(b) EQUITABLE RELIEF- The Secretary may provide relief to any participant
that is determined to be not in compliance with the requirements of a covered
program, and therefore ineligible for a loan, payment, or other benefit under
the covered program, if the participant--
(1) acting in good faith, relied on the action or advice of the
Secretary (including any authorized representative of the Secretary) to the
detriment of the participant; or
(2) failed to comply fully with the requirements of the covered program,
but made a good faith effort to comply with the requirements.
(c) FORMS OF RELIEF- The Secretary may authorize a participant in a
covered program to--
(1) retain loans, payments, or other benefits received under the covered
program;
(2) continue to receive loans, payments, and other benefits under the
covered program;
(3) continue to participate, in whole or in part, under any contract
executed under the covered program;
(4) in the case of a conservation program, reenroll all or part of the
land covered by the program; and
(5) receive such other equitable relief as the Secretary determines to
be appropriate.
(d) REMEDIAL ACTION- As a condition of receiving relief under this
section, the Secretary may require the participant to take actions designed to
remedy any failure to comply with the covered program.
(e) EQUITABLE RELIEF BY STATE DIRECTORS AND STATE CONSERVATIONISTS-
(1) IN GENERAL- A State Director, in the case of programs administered
by the State Director, and the State Conservationist, in the case of
programs administered by the State Conservationist, may grant relief to a
participant in accordance with subsections (b) through (d) if--
(A) the amount of loans, payments, and benefits for which relief will
be provided to the participant under this subsection is less than
$20,000;
(B) the total amount of loans, payments, and benefits for which relief
has been previously provided to the participant under this subsection is
not more than $5,000; and
(C) the total amount of loans, payments, and benefits for which relief
is provided to similarly situated participants under this subsection is
not more than $1,000,000, as determined by the Secretary.
(2) CONSULTATION, APPROVAL, AND REVERSAL- The decision by a State
Director or State Conservationist to grant relief under this
subsection--
(A) shall not require prior approval by the Administrator of the Farm
Service Agency, the Chief of the Natural Resources Conservation Service,
or any other officer or employee of the Agency or Service;
(B) shall be made only after consultation with, and the approval of,
the Office of General Counsel of the Department of Agriculture;
and
(C) is subject to reversal only by the Secretary (who may not delegate
the reversal authority).
(3) NONAPPLICABILITY- The authority of a State Director or State
Conservationist under this subsection does not apply to the administration
of--
(A) payment limitations under--
(i) sections 1001 through 1001F of the Food Security Act of 1985 (7
U.S.C. 1308 et seq.); or
(ii) a conservation program administered by the
Secretary.
(B) highly erodible land and wetland conservation requirements under
subtitle B or C of title XII of the Food Security Act of 1985 (16 U.S.C.
3811 et seq.).
(4) OTHER AUTHORITY- The authority provided to a State Director and
State Conservationist under this subsection is in addition to any other
applicable authority and does not limit other authority provided by law or
the Secretary.
(f) JUDICIAL REVIEW- A discretionary decision by the Secretary, the State
Director, or the State Conservationist under this section shall be final, and
shall not be subject to review under chapter 7 of title 5, United States
Code.
(g) REPORTS- Not later than February 1 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 for the previous calendar year--
(1) the number of requests for equitable relief under subsections (b)
and (e) and the disposition of the requests; and
(2) the number of requests for equitable relief under section 278(d) of
the Department of Agriculture Reorganization Act of 1994 (7 U.S.C. 6998(d))
and the disposition of the requests.
(h) RELATIONSHIP TO OTHER LAW- The authority provided in this section is
in addition to any other authority provided in this or any other Act.
(i) FINALITY RULE- Section 281(a) of the Department of Agriculture
Reorganization Act of 1994 (7 U.S.C. 7001(a)) is amended--
(1) by striking `Consolidated Farm Service Agency' each place it appears
and inserting `Farm Service Agency';
(A) by striking `This subsection' and inserting the
following:
`(A) IN GENERAL- Except as provided in subparagraph (B), this
subsection'; and
(B) by adding at the end the following:
`(B) NONAPPLICABILITY- This subsection does not apply to--
`(i) a function performed under section 376 of the Consolidated Farm
and Rural Development Act; or
`(ii) a function performed under a conservation program administered
by the Natural Resources Conservation Service.'; and
(3) in paragraph (2), by inserting `, before the end of the 90-day
period,' after `unless the decision'.
(j) CONFORMING AMENDMENTS-
(1) Section 326 of the Food and Agriculture Act of 1962 (7 U.S.C. 1339a)
is repealed.
(2) Section 278(d) of the Department of Agriculture Reorganization Act
of 1994 (7 U.S.C. 6998(d)) is amended in the first sentence by striking
`section 326 of the Food and Agriculture Act of 1962 (7 U.S.C. 1339a)' and
inserting `section 1613 of the Farm Security and Rural Investment Act of
2002'.
(3) Section 1230A of the Food Security Act of 1985 (16 U.S.C. 3830a) is
repealed.
SEC. 1614. TRACKING OF BENEFITS.
As soon as practicable after the date of enactment of this Act, the
Secretary shall establish procedures to track the benefits provided, directly
or indirectly, to individuals and entities under titles I and II and the
amendments made by those titles.
SEC. 1615. 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 the following:
(C) Agricultural commodities other than loan commodities.
SEC. 1616. AVAILABILITY OF INCENTIVE PAYMENTS FOR CERTAIN PRODUCERS.
(a) INCENTIVE PAYMENTS REQUIRED- Subject to subsection (b), the Secretary
shall make available a total of $20,000,000 of funds of the Commodity Credit
Corporation during the 2003 through 2005 crop years to provide incentive
payments to producers of hard white wheat.
(b) CONDITIONS ON IMPLEMENTATION- The Secretary shall implement subsection
(a)--
(1) only with regard to production that meets minimum quality criteria;
and
(2) on not more than 2,000,000 acres or the equivalent volume of
production.
(c) DEMAND FOR WHEAT- To be eligible to obtain an incentive payment under
subsection (a), a producer shall demonstrate to the satisfaction of the
Secretary that buyers and end-users are available for the wheat to be covered
by the incentive payment.
SEC. 1617. RENEWED AVAILABILITY OF MARKET LOSS ASSISTANCE AND CERTAIN
EMERGENCY ASSISTANCE TO PERSONS THAT FAILED TO RECEIVE ASSISTANCE UNDER EARLIER
AUTHORITIES.
(a) AUTHORITY TO PROVIDE ASSISTANCE- The Secretary of Agriculture may use
such funds of the Commodity Credit Corporation as are necessary to provide
market loss assistance and other emergency assistance under a provision of law
specified in subsection (c) to persons that, as determined by the
Secretary)--
(1) were eligible to receive the assistance under the provision of law;
but
(2) did not receive the assistance before October 1, 2001.
(b) LIMITATION- The amount of assistance provided under a provision of law
specified in subsection (c) and this section to a person shall not exceed the
amount of assistance the person would have been eligible to receive under the
provision had the claim of the producer under the provision been timely
resolved.
(c) COVERED MARKET LOSS ASSISTANCE AUTHORITIES- The following provisions
of law are covered by this section:
(1) Sections 1, 2, 3, 4, and 5 of Public Law 107-25 (115 Stat.
201).
(2) Sections 805, 806, and 814 of the Agriculture, Rural Development,
Food and Drug Administration, and Related Agencies Appropriations Act, 2001
(as enacted into law by Public Law 106-387; 114 Stat. 1549).
(3) Sections 201, 202, 204(a), 204(d), 257, and 259 of the Agricultural
Risk Protection Act of 2000 (Public Law 106-224; 7 U.S.C. 1421 note).
(4) Sections 802, 803(a), 804, and 805 of the Agriculture, Rural
Development, Food and Drug Administration, and Related Agencies
Appropriations Act, 2000 (Public Law 106-78; 113 Stat. 1135).
(5) The livestock indemnity program under the heading `COMMODITY CREDIT
CORPORATION FUND' in chapter 1 of title I of the 1999 Emergency Supplemental
Appropriations Act (Public 106-31; 113 Stat. 59).
(6) Section 1111(a) of the Agriculture, Rural Development, Food and Drug
Administration, and Related Agencies Appropriations Act, 1999 (as contained
in section 101(a) of division A of Public Law 105-277; 112 Stat.
2681-44).
SEC. 1618. PRODUCER RETENTION OF ERRONEOUSLY PAID LOAN DEFICIENCY PAYMENTS
AND MARKETING LOAN GAINS.
Notwithstanding any other provision of law, the Secretary and the
Commodity Credit Corporation shall not require producers in Erie County,
Pennsylvania, to repay loan deficiency payments and marketing loan gains
erroneously paid or determined to have been earned by the Commodity Credit
Corporation for certain 1998 and 1999 crops under subtitle C of title I of the
Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7231 et
seq.). In the case of a producer who has already made the repayment on or
before the date of the enactment of this Act, the Commodity Credit Corporation
shall reimburse the producer for the full amount of the repayment.
TITLE II--CONSERVATION
Subtitle A--Conservation Security
SEC. 2001. CONSERVATION SECURITY PROGRAM.
(a) IN GENERAL- 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 an amount that
is--
`(A) determined in accordance with the rate described in section
1238C(b)(1)(A); and
`(B) paid to a producer under a conservation security contract in
accordance with clause (i) of subparagraph (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 given the term under section 343(a) of the Consolidated Farm
and Rural Development Act (7 U.S.C. 1991(a)).
`(3) CONSERVATION PRACTICE- The term `conservation practice' means a
conservation farming practice described in section 1238A(d)(4) that--
`(A) requires planning, implementation, management, and maintenance;
and
`(B) promotes 1 or more of the purposes described in section
1238A(a).
`(4) CONSERVATION SECURITY CONTRACT- The term `conservation security
contract' means a contract described in section 1238A(e).
`(5) CONSERVATION SECURITY PLAN- The term `conservation security plan'
means a plan described in section 1238A(c).
`(6) CONSERVATION SECURITY PROGRAM- The term `conservation security
program' means the program established under section 1238A(a).
`(7) ENHANCED PAYMENT- The term `enhanced payment' means the amount paid
to a producer under a conservation security contract that is equal to the
amount described in section 1238C(b)(1)(C)(iii).
`(8) NONDEGRADATION STANDARD- The term `nondegradation standard' means
the level of measures required to adequately protect, and prevent
degradation of, 1 or more natural resources, as determined by the Secretary
in accordance with the quality criteria described in handbooks of the
Natural Resources Conservation Service.
`(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.
`(10) RESOURCE-CONSERVING CROP ROTATION- The term `resource-conserving
crop rotation' means a crop rotation that--
`(A) includes at least 1 resource-conserving crop (as defined by the
Secretary);
`(C) improves soil fertility and tilth;
`(D) interrupts pest cycles; and
`(E) in applicable areas, reduces depletion of soil moisture (or
otherwise reduces the need for irrigation).
`(11) 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.
`(12) SECRETARY- The term `Secretary' means the Secretary of
Agriculture, acting through the Chief of the Natural Resources Conservation
Service.
`(13) TIER I CONSERVATION SECURITY CONTRACT- The term `Tier I
conservation security contract' means a contract described in section
1238A(d)(5)(A).
`(14) TIER II CONSERVATION SECURITY CONTRACT- The term `Tier II
conservation security contract' means a contract described in section
1238A(d)(5)(B).
`(15) TIER III CONSERVATION SECURITY CONTRACT- The term `Tier III
conservation security contract' means a contract described in section
1238A(d)(5)(C).
`SEC. 1238A. CONSERVATION SECURITY PROGRAM.
`(a) IN GENERAL- The Secretary shall establish and, for each of fiscal
years 2003 through 2007, carry out a conservation security program to assist
producers of agricultural operations in promoting, as is applicable with
respect to land to be enrolled in the program, conservation and improvement of
the quality of soil, water, air, energy, plant and animal life, and any other
conservation purposes, as determined by the Secretary.
`(1) ELIGIBLE PRODUCERS- 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.
`(2) ELIGIBLE LAND- Except as provided in paragraph (3), private
agricultural land (including cropland, grassland, prairie land, improved
pasture land, and rangeland), land under the jurisdiction of an Indian tribe
(as defined by the Secretary), and forested land that is an incidental part
of an agricultural operation shall be eligible for enrollment in the
conservation security program.
`(A) 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.
`(B) 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.
`(C) GRASSLAND RESERVE PROGRAM- Land enrolled in the grassland reserve
program established under subchapter C of chapter 2 shall not be eligible
for enrollment in the conservation security program.
`(D) CONVERSION TO CROPLAND- Land that is used for crop production
after the date of enactment of this subchapter that had not been planted,
considered to be planted, or devoted to crop production for at least 4 of
the 6 years preceding that date (except for land enrolled in the
conservation reserve program under subchapter B of chapter 1) or that has
been maintained using long-term crop rotation practices, as determined by
the Secretary, shall not be the basis for any payment under the
conservation security program.
`(4) ECONOMIC USES- The Secretary shall permit a producer to implement,
with respect to all eligible land covered by a conservation security plan,
economic uses that--
`(A) maintain the agricultural nature of the land; and
`(B) are consistent with the natural resource and conservation
objectives of the conservation security program.
`(c) CONSERVATION SECURITY PLANS-
`(1) IN GENERAL- A conservation security plan shall--
`(A) identify the designated land and resources to be conserved under
the conservation security plan;
`(B) describe the tier of conservation security contract, 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
`(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.
`(2) RESOURCE PLANNING- The Secretary may assist producers that enter
into conservation security contracts in developing a comprehensive,
long-term strategy for improving and maintaining all natural resources of
the agricultural operation of the producer.
`(d) CONSERVATION CONTRACTS AND PRACTICES-
`(A) ESTABLISHMENT OF TIERS- The Secretary shall establish, and offer
to eligible producers, 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.
`(ii) DETERMINATION- In determining the eligibility of a practice
described in clause (i), the Secretary shall require, to the maximum
extent practicable, that the lowest cost alternatives be used to fulfill
the purposes of the conservation security plan, as determined by the
Secretary.
`(2) ON-FARM RESEARCH AND DEMONSTRATION OR PILOT TESTING- With respect
to land enrolled in the conservation security program, the Secretary may
approve a conservation security plan that includes--
`(A) on-farm conservation research and demonstration activities;
and
`(B) pilot testing of new technologies or innovative conservation
practices.
`(3) USE OF HANDBOOK AND GUIDES; STATE AND LOCAL CONSERVATION
CONCERNS-
`(A) USE OF HANDBOOK AND GUIDES- In determining eligible conservation
practices and the criteria for implementing or maintaining the
conservation practices under the conservation security program, the
Secretary shall use the National Handbook of Conservation Practices of the
Natural Resources Conservation Service.
`(B) STATE AND LOCAL CONSERVATION PRIORITIES- The conservation
priorities of a State or locality in which an agricultural operation is
situated shall be determined by the State Conservationist, in consultation
with--
`(i) the State technical committee established under subtitle G;
and
`(ii) local agricultural producers and conservation working
groups.
`(4) CONSERVATION PRACTICES- Conservation practices that may be
implemented by a producer under a conservation security contract (as
appropriate for the agricultural operation of a producer) include--
`(A) nutrient management;
`(B) integrated pest management;
`(C) water conservation (including through irrigation) and water
quality management;
`(D) grazing, pasture, and rangeland management;
`(E) soil conservation, quality, and residue management;
`(F) invasive species management;
`(G) fish and wildlife habitat conservation, restoration, and
management;
`(H) air quality management;
`(I) energy conservation measures;
`(J) biological resource conservation and regeneration;
`(N) controlled rotational grazing;
`(O) resource-conserving crop rotation;
`(P) conversion of portions of cropland from a soil-depleting use to a
soil-conserving use, including production of cover crops;
`(Q) partial field conservation practices;
`(R) native grassland and prairie protection and restoration;
and
`(S) any other conservation practices that the Secretary determines to
be appropriate and comparable to other conservation practices described in
this paragraph.
`(5) TIERS- Subject to paragraph (6), to carry out this subsection, the
Secretary shall establish the following 3 tiers of conservation
contracts:
`(A) TIER I CONSERVATION SECURITY CONTRACTS- A conservation security
plan for land enrolled under a Tier I conservation security contract
shall--
`(i) be for a period of 5 years; and
`(ii) include conservation practices appropriate for the
agricultural operation, that, at a minimum (as determined by the
Secretary)--
`(I) address at least 1 significant resource of concern for the
enrolled portion of the agricultural operation at a level that meets
the appropriate nondegradation standard; and
`(II) cover active management of conservation practices that are
implemented or maintained under the conservation security
contract.
`(B) TIER II CONSERVATION SECURITY CONTRACTS- A conservation security
plan for land enrolled under a Tier II conservation security contract
shall--
`(i) be for a period of not less than 5 nor more than 10 years, as
determined by the producer;
`(ii) include conservation practices appropriate for the
agricultural operation, that, at a minimum--
`(I) address at least 1 significant resource of concern for the
entire agricultural operation, as determined by the Secretary, at a
level that meets the appropriate nondegradation standard;
and
`(II) cover active management of conservation practices that are
implemented or maintained under the conservation security
contract.
`(C) TIER III CONSERVATION SECURITY CONTRACTS- A conservation security
plan for land enrolled under a Tier III conservation security contract
shall--
`(i) be for a period of not less than 5 nor more than 10 years, as
determined by the producer; and
`(ii) include conservation practices appropriate for the
agricultural operation that, at a minimum--
`(I) apply a resource management system that meets the appropriate
nondegradation standard for all resources of concern of the entire
agricultural operation, as determined by the Secretary;
and
`(II) cover active management of conservation practices that are
implemented or maintained under the conservation security
contract.
`(6) MINIMUM REQUIREMENTS- The minimum requirements for each tier of
conservation contracts implemented under paragraph (5) shall be determined
and approved by the Secretary.
`(e) CONSERVATION SECURITY CONTRACTS-
`(1) 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.
`(A) OPTIONAL MODIFICATIONS- A producer may apply to the Secretary for
a modification of the conservation security contract of the producer that
is consistent with the purposes of the conservation security
program.
`(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 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.
`(ii) PARTICIPATION IN OTHER PROGRAMS- If appropriate payment
reductions and other adjustments (as determined by the Secretary) are
made to the conservation security contract of a producer, the producer
may--
`(I) simultaneously participate in--
`(aa) the conservation security program;
`(bb) the conservation reserve program under subchapter B of chapter
1; and
`(cc) the wetlands reserve program under subchapter C of chapter 1;
and
`(II) may remove land enrolled in the conservation security
program for enrollment in a program described in item (bb) or (cc) of
subclause (I).
`(A) OPTIONAL TERMINATION- A producer may terminate a conservation
security contract and retain payments received under the conservation
security contract, if--
`(i) 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
`(ii) the Secretary determines that termination of the contract
would not defeat the purposes of the conservation security plan of the
producer.
`(B) OTHER TERMINATION- A producer that is required to modify a
conservation security contract under paragraph (2)(B)(i) 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 has fully complied with the terms and
conditions of the conservation security contract before termination of
the contract, as determined by the Secretary.
`(A) IN GENERAL- Except as provided in subparagraph (B), at the option
of a producer, the conservation security contract of the producer may be
renewed for an additional period of not less than 5 nor more than 10
years.
`(B) TIER I RENEWALS- In the case of a Tier I conservation security
contract of a producer, the producer may renew the contract only if the
producer agrees--
`(i) to apply additional conservation practices that meet the
nondegradation standard on land already enrolled in the conservation
security program; or
`(ii) to adopt new conservation practices with respect to another
portion of the agricultural operation that address resource concerns and
meet the nondegradation standard under the terms of the Tier I
conservation security contract.
`(f) NONCOMPLIANCE DUE TO CIRCUMSTANCES BEYOND THE CONTROL OF PRODUCERS-
The Secretary shall include in the conservation security contract a provision,
and may permit modification of a conservation security contract under
subsection (e)(1), 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 program; 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 payments 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) TIMING OF PAYMENTS- The Secretary shall make payments under a
conservation security contract as soon as practicable after October 1 of each
fiscal year.
`(1) CRITERIA FOR DETERMINING AMOUNT OF PAYMENTS-
`(A) BASE PAYMENT- A base payment under this paragraph shall be (as
determined by the Secretary)--
`(i) the average national per-acre rental rate for a specific land
use during the 2001 crop year; or
`(ii) another appropriate rate for the 2001 crop year that ensures
regional equity.
`(B) PAYMENTS- A payment for a conservation practice under this
paragraph shall be determined in accordance with subparagraphs (C) through
(E).
`(C) TIER I CONSERVATION SECURITY CONTRACTS- The payment for a Tier I
conservation security contract shall consist of the total of the following
amounts:
`(i) An amount equal to 5 percent of the applicable base payment for
land covered by the contract.
`(ii) An amount that does not exceed 75 percent (or, in the case of
a beginning farmer or rancher, 90 percent) of the average county costs
of practices for the 2001 crop year that are included in the
conservation security contract, as determined by the Secretary,
including the costs of--
`(I) the adoption of new management, vegetative, and land-based
structural practices;
`(II) the maintenance of existing land management and vegetative
practices; and
`(III) the maintenance of existing land-based structural practices
that are approved by the Secretary but not already covered by a
Federal or State maintenance requirement.
`(iii) An enhanced payment that is determined by the Secretary in a
manner that ensures equity across regions of the United States, if the
producer--
`(I) implements or maintains multiple conservation practices that
exceed minimum requirements for the applicable tier of participation
(including practices that involve a change in land use, such as
resource-conserving crop rotation, managed rotational grazing, or
conservation buffer practices);
`(II) addresses local conservation priorities in addition to
resources of concern for the agricultural operation;
`(III) participates in an on-farm conservation research,
demonstration, or pilot project;
`(IV) participates in a watershed or regional resource
conservation plan that involves at least 75 percent of producers in a
targeted area; or
`(V) carries out assessment and evaluation activities relating to
practices included in a conservation security plan.
`(D) TIER II CONSERVATION SECURITY CONTRACTS- The payment for a Tier
II conservation security contract shall consist of the total of the
following amounts:
`(i) An amount equal to 10 percent of the applicable base payment
for land covered by the conservation security contract.
`(ii) An amount that does not exceed 75 percent (or, in the case of
a beginning farmer or rancher, 90 percent) of the average county cost of
adopting or maintaining practices for the 2001 crop year that are
included in the conservation security contract, as described in
subparagraph (C)(ii).
`(iii) An enhanced payment that is determined in accordance with
subparagraph (C)(iii).
`(E) TIER III CONSERVATION SECURITY CONTRACTS- The payment for a Tier
III conservation security contract shall consist of the total of the
following amounts:
`(i) An amount equal to 15 percent of the base payment for land
covered by the conservation security contract.
`(ii) An amount that does not exceed 75 percent (or, in the case of
a beginning farmer or rancher, 90 percent) of the average county cost of
adopting or maintaining practices for the 2001 crop year that are
included in the conservation security contract, as described in
subparagraph (C)(ii).
`(iii) An enhanced payment that is determined in accordance with
subparagraph (C)(iii).
`(2) LIMITATION ON PAYMENTS-
`(A) IN GENERAL- Subject to paragraphs (1) and (3), the Secretary
shall make an annual payment, directly or indirectly, to an individual or
entity covered by a 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,
$45,000.
`(B) LIMITATION ON BASE 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 clause (i) of paragraph (1)(C), (1)(D), or (1)(E), as
appropriate, in an amount that exceeds--
`(i) in the case of Tier I contracts, 25 percent of the applicable
payment limitation; or
`(ii) in the case of Tier II contracts and Tier III contracts, 30
percent of the applicable payment limitation.
`(C) OTHER USDA PAYMENTS- A producer shall not receive payments under
the conservation security program and any other conservation program
administered by the Secretary for the same practices on the same
land.
`(D) COMMENSURATE SHARE- To be eligible to receive a payment under
this subchapter, 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.
`(3) EQUIPMENT OR FACILITIES- A payment to a producer under this
subchapter shall not be provided for--
`(A) construction or maintenance of animal waste storage or treatment
facilities or associated waste transport or transfer devices for animal
feeding operations; or
`(B) the purchase or maintenance of equipment or a non-land based
structure that is not integral to a land-based practice, as determined by
the Secretary.
`(c) MINIMUM PRACTICE REQUIREMENT- In determining a payment under
subsection (b) for a producer that receives a payment under another program
administered by the Secretary that is contingent on complying with
requirements under subtitle B or C (relating to the use of highly erodible
land or wetland), a payment under this subchapter on land subject to those
requirements shall be for practices only to the extent that the practices
exceed minimum requirements for the producer under those subtitles, as
determined by the Secretary.
`(d) REGULATIONS- The Secretary shall promulgate regulations that--
`(1) provide for adequate safeguards to protect the interests of tenants
and sharecroppers, including provision for sharing payments, on a fair and
equitable basis; and
`(2) prescribe such other rules as the Secretary determines to be
necessary to ensure a fair and reasonable application of the limitations
established under subsection (b).
`(e) 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, and assumed by, the transferee.
`(f) ENROLLMENT PROCEDURE- In entering into conservation security
contracts with producers under this subchapter, the Secretary shall not use
competitive bidding or any similar procedure.
`(g) TECHNICAL ASSISTANCE- For each of fiscal years 2003 through 2007, the
Secretary shall provide technical assistance to producers for the development
and implementation of conservation security contracts, in an amount not to
exceed 15 percent of amounts expended for the fiscal year.'.
(b) REGULATIONS- Not later than 270 days after the date of enactment of
this Act, the Secretary of Agriculture shall promulgate regulations
implementing the amendment made by subsection (a).
SEC. 2002. CONSERVATION COMPLIANCE.
(a) HIGHLY ERODIBLE LAND- Section 1211 of the Food Security Act of 1985
(16 U.S.C. 3811) is amended--
(1) by striking the section heading and all that follows through `Except
as provided in' and inserting the following:
`SEC. 1211. PROGRAM INELIGIBILITY.
`(a) IN GENERAL- Except as provided in'; and
(2) by adding at the end the following:
`(b) HIGHLY ERODIBLE LAND- The Secretary shall have, and shall not
delegate to any private person or entity, authority to determine whether a
person has complied with this subtitle.'.
(b) WETLAND- Section 1221 of the Food Security Act of 1985 (16 U.S.C.
3821) is amended by adding at the end the following:
`(e) WETLAND- The Secretary shall have, and shall not delegate to any
private person or entity, authority to determine whether a person has complied
with this subtitle.'.
SEC. 2003. 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
stewardship 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 natural resource issues
related to agricultural production.
`(2) CRITERIA FOR SPECIAL PROJECTS- The purposes of special projects
carried out under this subsection shall be to encourage--
`(A) producers to cooperate in the installation and maintenance of
conservation practices that affect multiple agricultural
operations;
`(B) the sharing of information and technical and financial resources
among producers;
`(C) cumulative conservation benefits in geographic areas;
and
`(D) the development and demonstration of innovative conservation
methods.
`(3) 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 and enrollments of optimal conservation value.
`(A) IN GENERAL- The Secretary may enter into stewardship agreements
with States (including State agencies and units of local government),
Indian tribes, and nongovernmental organizations that have a history of
working with agricultural producers 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) conservation enhancement and long-term productivity of the
natural resource base; and
`(ii) the purposes and requirements of this title.
`(B) PLAN- Each party to a stewardship agreement under subparagraph
(A) shall submit to the Secretary, for approval by the Secretary, a
special project area 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 conservation benefits);
`(ii) an analysis of the contribution those adjustments will make to
the effectiveness of programs in achieving the purposes of the special
project;
`(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;
and
`(v) a plan for the evaluation of progress toward the purposes of
the special project.
`(A) IN GENERAL- In addition to resources from programs under subtitle
D, subject to subparagraph (B), the Secretary shall use not more than 5
percent of the funds made available for each fiscal year under section
1241(a) to carry out activities that are authorized under conservation
programs under 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 conservation programs under
subtitle D during the fiscal year in which the funding becomes
available.'.
SEC. 2004. ADMINISTRATIVE REQUIREMENTS FOR CONSERVATION PROGRAMS.
(a) IN GENERAL- 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) 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 and ranching opportunities; and
`(2) enhance environmental stewardship over the long term.
`(b) 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
(2), 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 by the Secretary) 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- Nothing in this section affects the availability of
payment information (including payment amounts and the names and addresses
of recipients of payments) under section 552 of title 5, United States
Code.
`(A) RELEASE AND DISCLOSURE FOR ENFORCEMENT- The Secretary may release
or disclose to the Attorney General information covered by paragraph (1)
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) 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) 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).
`(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.
`(3) 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.
`(4) 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.'.
(b) NATIONAL RESOURCES INVENTORY- Section 1770 of the Food Security Act of
1985 (7 U.S.C. 2276) is amended--
(A) in paragraph (1), by striking `or' at the end;
(B) in paragraph (2), by striking the period and inserting `; or';
and
(C) by adding at the end the following:
`(3) in the case of information collected under the authority described
in subsection (d)(12), disclose the information to any person or any
Federal, State, local, or tribal agency outside the Department of
Agriculture, unless the information has been converted into a statistical or
aggregate form that does not allow the identification of the person that
supplied particular information.'; and
(A) in paragraph (9), by striking `or' at the end;
(B) in paragraph (11), by striking the period and inserting `; or';
and
(C) by adding at the end the following:
`(12) section 302 of the Rural Development Act of 1972 (7 U.S.C. 1010a)
regarding the authority to collect data for the National Resources
Inventory.'.
SEC. 2005. REFORM AND ASSESSMENT OF CONSERVATION PROGRAMS.
(a) IN GENERAL- The Secretary of Agriculture shall develop a plan to
coordinate land retirement and agricultural working land conservation programs
that are administered by the Secretary to achieve the goals of--
(1) eliminating redundancy;
(2) streamlining program delivery; and
(3) improving services provided to agricultural producers (including the
reevaluation of the provision of technical assistance).
(b) REPORT- Not later than December 31, 2005, 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--
(1) the plan developed under subsection (a); and
(2) the means by which the Secretary intends to achieve the goals
described in subsection (a).
SEC. 2006. 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 by striking the chapter heading and
inserting the following:
`CHAPTER 1--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';
(3) by striking subsection (c); and
(4) 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--Conservation Reserve
SEC. 2101. CONSERVATION RESERVE PROGRAM.
(a) IN GENERAL- 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.) is amended to read as
follows:
`Subchapter B--Conservation Reserve
`SEC. 1231. CONSERVATION RESERVE.
`(a) IN GENERAL- Through the 2007 calendar year, the Secretary shall
formulate and carry out a conservation reserve program under which land is
enrolled through the use of contracts to assist owners and operators of land
specified in subsection (b) to conserve and improve the soil, water, and
wildlife resources of such land.
`(b) ELIGIBLE LAND- The Secretary may include in the program established
under this subchapter--
`(1) highly erodible cropland that--
`(A)(i) if permitted to remain untreated could substantially reduce
the agricultural production capability for future generations; or
`(ii) cannot be farmed in accordance with a 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 4 of the 6 years preceding the date of enactment of the
Farm Security and Rural Investment Act of 2002 (except for land enrolled
in the conservation reserve program as of that date).
`(2) marginal pasture land converted to wetland or established as
wildlife habitat prior to November 28, 1990;
`(3) marginal pasture land to be devoted to appropriate vegetation,
including trees, in or near riparian areas, or devoted to similar water
quality purposes (including marginal pastureland converted to wetland or
established as wildlife habitat);
`(4) cropland that is otherwise ineligible if the Secretary determines
that--
`(A) if permitted to remain in agricultural production, the land
would--
`(i) contribute to the degradation of soil, water, or air quality;
or
`(ii) pose an on-site or off-site environmental threat to soil,
water, or air quality;
`(i) newly-created, permanent grass sod waterway; or
`(ii) a contour grass sod strip established and maintained as part
of an approved conservation plan;
`(C) the land will be devoted to newly established living snow fences,
permanent wildlife habitat, windbreaks, shelterbelts, or filterstrips
devoted to trees or shrubs; or
`(D) the land poses an off-farm environmental threat, or a threat of
continued degradation of productivity due to soil salinity, if permitted
to remain in production; and
`(E) enrollment of the land would facilitate a net savings in
groundwater or surface water resources of the agricultural operation of
the producer;
`(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, if--
`(A) the land is enrolled as part of the buffer; and
`(B) the remainder of the field is--
`(i) infeasible to farm; and
`(ii) enrolled at regular rental rates.
`(c) PLANTING STATUS OF CERTAIN LAND- For purposes of determining the
eligibility of land to be placed in the conservation reserve established under
this subchapter, land shall be considered to be planted to an agricultural
commodity during a crop year if--
`(1) during the crop year, the land was devoted to a conserving use;
or
`(2)(A) during the crop year or during any of the 2 years preceding the
crop year, the land was enrolled in the water bank program; and
`(B) the contract of the owner or operator of the cropland expired or
will expire in calendar year 2000, 2001, or 2002.
`(d) MAXIMUM ENROLLMENT- The Secretary may maintain up to 39,200,000 acres
in the conservation reserve at any 1 time during the 2002 through 2007
calendar years (including contracts extended by the Secretary pursuant to
section 1437(c) of the Food, Agriculture, Conservation, and Trade Act of 1990
( 16 U.S.C. 3831 note; Public Law 101-624)).
`(e) DURATION OF CONTRACT-
`(1) IN GENERAL- For the purpose of carrying out this subchapter, the
Secretary shall enter into contracts of not less than 10, nor more than 15,
years.
`(A) IN GENERAL- In the case of land devoted to hardwood trees,
shelterbelts, windbreaks, or wildlife corridors under a contract entered
into under this subchapter after October 1, 1990, and land devoted to such
uses under contracts modified under section 1235A, the owner or operator
of the land may, within the limitations prescribed under this section,
specify the duration of the contract.
`(B) HARDWOOD TREES- In the case of land that is devoted to hardwood
trees under a contract entered into under this subchapter prior to October
1, 1990, the Secretary may extend the contract for a term of not to exceed
5 years, as agreed to by the owner or operator of such land and the
Secretary.
`(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.
`(f) CONSERVATION PRIORITY AREAS-
`(1) DESIGNATION- On application by the appropriate State agency, the
Secretary shall designate watershed areas of the Chesapeake Bay Region
(Pennsylvania, Maryland, and Virginia), the Great Lakes Region, the Long
Island Sound Region, and other areas of special environmental sensitivity as
conservation priority areas.
`(2) ELIGIBLE WATERSHEDS- Watersheds eligible for designation under this
subsection shall include areas with actual and significant adverse water
quality or habitat impacts related to agricultural production
activities.
`(3) EXPIRATION- Conservation priority area designation under this
subsection shall expire after 5 years, subject to redesignation, except that
the Secretary may withdraw a watershed's designation--
`(A) on application by the appropriate State agency; or
`(B) in the case of an area covered by this subsection, if the
Secretary finds that the area no longer contains actual and significant
adverse water quality or habitat impacts related to agricultural
production activities.
`(4) DUTY OF SECRETARY- In carrying out this subsection, the Secretary
shall attempt to maximize water quality and habitat benefits in the
watersheds described in paragraph (1) by promoting a significant level of
enrollment of land within the watersheds in the program under this
subchapter by whatever means the Secretary determines are appropriate and
consistent with the purposes of this subchapter.
`(g) MULTI-YEAR GRASSES AND LEGUMES- For purposes of this subchapter,
alfalfa and other multi-year grasses and legumes in a rotation practice,
approved by the Secretary, shall be considered agricultural commodities.
`(h) PILOT PROGRAM FOR ENROLLMENT OF WETLAND AND BUFFER ACREAGE IN
CONSERVATION RESERVE-
`(A) IN GENERAL- During the 2002 through 2007 calendar years, the
Secretary shall carry out a program in each State under which the
Secretary shall include eligible acreage described in paragraph (2) in the
program established under this subchapter.
`(B) PARTICIPATION AMONG STATES.-The Secretary shall ensure, to the
maximum extent practicable, that owners and operators in each State have
an equitable opportunity to participate in the pilot program established
under this subsection.
`(A) IN GENERAL- Subject to subparagraphs (B) through (D), an owner or
operator may enroll in the conservation reserve under this
subsection--
`(i) a wetland (including a converted wetland described in section
1222(b)(1)(A)) that was cropped during at least 3 of the immediately
preceding 10 crop years; and
`(ii) buffer acreage that--
`(I) is contiguous to the wetland described in clause
(i);
`(II) is used to protect the wetland; and
`(III) is of such width as the Secretary determines is necessary
to protect the wetland, taking into consideration and accommodating
the farming practices (including the straightening of boundaries to
accommodate machinery) used with respect to the cropland that
surrounds the wetland.
`(B) EXCLUSIONS- An owner or operator may not enroll in the
conservation reserve under this subsection--
`(i) any wetland, or land on a floodplain, that is, or is adjacent
to, a perennial riverine system wetland identified on the final national
wetland inventory map of the Secretary of the Interior; or
`(ii) in the case of an area that is not covered by the final
national inventory map, any wetland, or land on a floodplain, that is
adjacent to a perennial stream identified on a 1-24,000 scale map of the
United States Geological Survey.
`(C) PROGRAM LIMITATIONS-
`(i) IN GENERAL- The Secretary may enroll in the conservation
reserve under this subsection not more than--
`(I) 100,000 acres in any 1 State referred to in paragraph (1);
and
`(II) not more than a total of 1,000,000 acres.
`(ii) RELATIONSHIP TO PROGRAM MAXIMUM- Subject to clause (iii), for
the purposes of subsection (d), any acreage enrolled in the conservation
reserve under this subsection shall be considered acres maintained in
the conservation reserve.
`(iii) RELATIONSHIP TO OTHER ENROLLED ACREAGE- Acreage enrolled
under this subsection shall not affect for any fiscal year the quantity
of--
`(I) acreage enrolled to establish conservation buffers as part of
the program announced on March 24, 1998 (63 Fed. Reg. 14109);
or
`(II) acreage enrolled into the conservation reserve enhancement
program announced on May 27, 1998 (63 Fed. Reg. 28965).
`(iv) REVIEW; POTENTIAL INCREASE IN ENROLLMENT ACREAGE- Not later
than 3 years after the date of enactment of this clause, the Secretary
shall--
`(I) conduct a review of the program under this subsection with
respect to each State that has enrolled land in the program;
and
`(II) notwithstanding clause (i)(I), increase the number of acres
that may be enrolled by a State under clause (i)(I) to not more than
150,000 acres, as determined by the Secretary.
`(D) OWNER OR OPERATOR LIMITATIONS-
`(I) IN GENERAL- The maximum size of any wetland described in
subparagraph (A)(i) of an owner or operator enrolled in the
conservation reserve under this subsection shall be 10 contiguous
acres, of which not more than 5 acres shall be eligible for
payment.
`(II) COVERAGE- All acres described in subclause (I) (including
acres that are ineligible for payment) shall be covered by the
conservation contract.
`(ii) BUFFER ACREAGE- The maximum size of any buffer acreage
described in subparagraph (A)(ii) of an owner or operator enrolled in
the conservation reserve under this subsection shall be the greater
of--
`(I) 3 times the size of any wetland described in subparagraph
(A)(i) to which the buffer acreage is contiguous; or
`(II) 150 feet on either side of the wetland.
`(iii) TRACTS- The maximum size of any eligible acreage described in
subparagraph (A) in a tract (as determined by the Secretary) of an owner
or operator enrolled in the conservation reserve under this subsection
shall be 40 acres.
`(3) DUTIES OF OWNERS AND OPERATORS- Under a contract entered into under
this subsection, during the term of the contract, an owner or operator of a
farm or ranch shall agree--
`(A) to restore the hydrology of the wetland within the eligible
acreage to the maximum extent practicable, as determined by the
Secretary;
`(B) to establish vegetative cover (which may include emerging
vegetation in water) on the eligible acreage, as determined by the
Secretary; and
`(C) to carry out other duties described in section 1232.
`(4) DUTIES OF THE SECRETARY-
`(A) IN GENERAL- Except as provided in subparagraphs (B) and (C), in
return for a contract entered into by an owner or operator under this
subsection, the Secretary shall make payments and provide assistance to
the owner or operator in accordance with sections 1233 and 1234.
`(B) CONTINUOUS SIGNUP- The Secretary shall use continuous signup
under section 1234(c)(2)(B) to determine the acceptability of contract
offers and the amount of rental payments under this subsection.
`(C) INCENTIVES- The amounts payable to owners and operators in the
form of rental payments under contracts entered into under this subsection
shall reflect incentives that are provided to owners and operators to
enroll filterstrips in the conservation reserve under section
1234.
`(i) ELIGIBILITY FOR CONSIDERATION- On the expiration of a contract
entered into under this subchapter, the land subject to the contract shall be
eligible to be considered for reenrollment in the conservation reserve.
`(j) BALANCE OF NATURAL RESOURCE PURPOSES- In determining the
acceptability of contract offers under this subchapter, the Secretary shall
ensure, to the maximum extent practicable, an equitable balance among the
conservation purposes of soil erosion, water quality, and wildlife habitat.
`SEC. 1232. DUTIES OF OWNERS AND OPERATORS.
`(a) IN GENERAL- Under the terms of a contract entered into under this
subchapter, during the term of the contract, an owner or operator of a farm or
ranch shall agree--
`(1) to implement a plan approved by the local conservation district (or
in an area not located within a conservation district, a plan approved by
the Secretary) for converting eligible land normally devoted to the
production of an agricultural commodity on the farm or ranch to a less
intensive use (as defined by the Secretary), such as pasture, permanent
grass, legumes, forbs, shrubs, or trees, substantially in accordance with a
schedule outlined in the plan;
`(2) to place highly erodible cropland subject to the contract in the
conservation reserve established under this subchapter;
`(3) not to use the land for agricultural purposes, except as permitted
by the Secretary;
`(4) to establish approved vegetative cover (which may include emerging
vegetation in water), water cover for the enhancement of wildlife, or, where
practicable, maintain existing cover on the land, except that--
`(A) the water cover shall not include ponds for the purpose of
watering livestock, irrigating crops, or raising fish for commercial
purposes; and
`(B) the Secretary shall not terminate the contract for failure to
establish approved vegetative or water cover on the land if--
`(i) the failure to plant the cover was due to excessive rainfall or
flooding;
`(ii) the land subject to the contract that could practicably be
planted to the cover is planted to the cover; and
`(iii) the land on which the owner or operator was unable to plant
the cover is planted to the cover after the wet conditions that
prevented the planting subsides;
`(5) on a violation of a term or condition of the contract at any time
the owner or operator has control of the land--
`(A) to forfeit all rights to receive rental payments and cost sharing
payments under the contract and to refund to the Secretary any rental
payments and cost sharing payments received by the owner or operator under
the contract, together with interest on the payments as determined by the
Secretary, if the Secretary, after considering the recommendations of the
soil conservation district and the Natural Resources Conservation Service,
determines that the violation is of such nature as to warrant termination
of the contract; or
`(B) to refund to the Secretary, or accept adjustments to, the rental
payments and cost sharing payments provided to the owner or operator, as
the Secretary considers appropriate, if the Secretary determines that the
violation does not warrant termination of the contract;
`(6) on the transfer of the right and interest of the owner or operator
in land subject to the contract--
`(A) to forfeit all rights to rental payments and cost sharing
payments under the contract; and
`(B) to refund to the United States all rental payments and cost
sharing payments received by the owner or operator, or accept such payment
adjustments or make such refunds as the Secretary considers appropriate
and consistent with the objectives of this subchapter;
unless the transferee of the land agrees with the Secretary to assume
all obligations of the contract, except that no refund of rental payments
and cost sharing payments shall be required if the land is purchased by or
for the United States Fish and Wildlife Service, or the transferee and the
Secretary agree to modifications to the contract, in a case in which the
modifications are consistent with the objectives of the program, as
determined by the Secretary;
`(7) not to conduct any harvesting or grazing, nor otherwise make
commercial use of the forage, on land that is subject to the contract, nor
adopt any similar practice specified in the contract by the Secretary as a
practice that would tend to defeat the purposes of the contract, except that
the Secretary may permit, consistent with the conservation of soil, water
quality, and wildlife habitat (including habitat during nesting seasons for
birds in the area)--
`(A) managed harvesting and grazing (including the managed harvesting
of biomass), except that in permitting managed harvesting and grazing, the
Secretary--
`(i) shall, in coordination with the State technical
committee--
`(I) develop appropriate vegetation management requirements;
and
`(II) identify periods during which harvesting and grazing under
this paragraph may be conducted;
`(ii) may permit harvesting and grazing or other commercial use of
the forage on the land that is subject to the contract in response to a
drought or other emergency; and
`(iii) shall, in the case of routine managed harvesting or grazing
or harvesting or grazing conducted in response to a drought or other
emergency, reduce the rental payment otherwise payable under the
contract by an amount commensurate with the economic value of the
activity; and
`(B) the installation of wind turbines, except that in permitting the
installation of wind turbines, the Secretary shall determine the number
and location of wind turbines that may be installed, taking into
account--
`(i) the location, size, and other physical characteristics of the
land;
`(ii) the extent to which the land contains wildlife and wildlife
habitat; and
`(iii) the purposes of the conservation reserve program under this
subchapter;
`(8) not to conduct any planting of trees on land that is subject to the
contract unless the contract specifies that the harvesting and commercial
sale of trees such as Christmas trees are prohibited, nor otherwise make
commercial use of trees on land that is subject to the contract unless it is
expressly permitted in the contract, nor adopt any similar practice
specified in the contract by the Secretary as a practice that would tend to
defeat the purposes of the contract, except that no contract shall prohibit
activities consistent with customary forestry practice, such as pruning,
thinning, or stand improvement of trees, on land converted to forestry
use;
`(9) not to adopt any practice specified by the Secretary in the
contract as a practice that would tend to defeat the purposes of this
subchapter; and
`(10) to comply with such additional provisions as the Secretary
determines are desirable and are included in the contract to carry out this
subchapter or to facilitate the practical administration of this
subchapter.
`(b) CONSERVATION PLANS- The plan referred to in subsection (a)(1)--
`(A) the conservation measures and practices to be carried out by the
owner or operator during the term of the contract; and
`(B) the commercial use, if any, to be permitted on the land during
the term; and
`(2) may provide for the permanent retirement of any existing cropland
base and allotment history for the land.
`(1) IN GENERAL- Notwithstanding any other provision of law, an owner or
operator who is a party to a contract entered into under this subchapter may
not be required to make repayments to the Secretary of amounts received
under the contract if the land that is subject to the contract has been
foreclosed on and the Secretary determines that forgiving the repayments is
appropriate in order to provide fair and equitable treatment.
`(2) RESUMPTION OF CONTROL-
`(A) IN GENERAL- This subsection shall not void the responsibilities
of an owner or operator under the contract if the owner or operator
resumes control over the land that is subject to the contract within the
period specified in the contract.
`(B) CONTRACT- On the resumption of the control over the land by the
owner or operator, the provisions of the contract in effect on the date of
the foreclosure shall apply.
`SEC. 1233. DUTIES OF THE SECRETARY.
`In return for a contract entered into by an owner or operator under
section 1232, the Secretary shall--
`(1) share the cost of carrying out the conservation measures and
practices set forth in the contract for which the Secretary determines that
cost sharing is appropriate and in the public interest; and
`(2) for a period of years not in excess of the term of the contract,
pay an annual rental payment in an amount necessary to compensate
for--
`(A) the conversion of highly erodible cropland normally devoted to
the production of an agricultural commodity on a farm or ranch to a less
intensive use; and
`(B) the retirement of any cropland base and allotment history that
the owner or operator agrees to retire permanently.
`SEC. 1234. PAYMENTS.
`(a) TIMING- The Secretary shall provide payment for obligations incurred
by the Secretary under a contract entered into under this subchapter--
`(1) with respect to any cost-sharing payment obligation incurred by the
Secretary, as soon as practicable after the obligation is incurred;
and
`(2) with respect to any annual rental payment obligation incurred by
the Secretary--
`(A) as soon as practicable after October 1 of each calendar year;
or
`(B) at the option of the Secretary, at any time prior to such date
during the year that the obligation is incurred.
`(b) FEDERAL PERCENTAGE OF COST SHARING PAYMENTS-
`(1) IN GENERAL- In making cost sharing payments to an owner or operator
under a contract entered into under this subchapter, the Secretary shall pay
50 percent of the cost of establishing water quality and conservation
measures and practices required under each contract for which the Secretary
determines that cost sharing is appropriate and in the public
interest.
`(2) LIMITATION- The Secretary shall not make any payment to an owner or
operator under this subchapter to the extent that the total amount of cost
sharing payments provided to the owner or operator from all sources would
exceed 100 percent of the total cost of establishing measures and practices
described in paragraph (1).
`(3) HARDWOOD TREES, WINDBREAKS, SHELTERBELTS, AND WILDLIFE
CORRIDORS-
`(A) APPLICABILITY- This paragraph applies to--
`(i) land devoted to the production of hardwood trees, windbreaks,
shelterbelts, or wildlife corridors under a contract entered into under
this subchapter after November 28, 1990; and
`(ii) land converted to such production under section
1235A.
`(B) PAYMENTS- In making cost share payments to an owner or operator
of land described in subparagraph (A), the Secretary shall pay 50 percent
of the reasonable and necessary costs, as determined by the Secretary,
incurred by the owner or operator for maintaining trees or shrubs,
including the cost of replanting (if the trees or shrubs were lost due to
conditions beyond the control of the owner or operator), during not less
than the 2-year, and not more than the 4-year, period beginning on the
date of the planting of the trees or shrubs, as determined appropriate by
the Secretary.
`(4) HARDWOOD TREE PLANTING- The Secretary may permit owners or
operators that contract to devote at least 10 acres of land to the
production of hardwood trees under this subchapter to extend the planting of
the trees over a 3-year period if at least 1/3 of the trees are planted in
each of the first 2 years.
`(5) OTHER FEDERAL COST SHARE ASSISTANCE- An owner or operator shall not
be eligible to receive or retain cost share assistance under this subsection
if the owner or operator receives any other Federal cost share assistance
with respect to the land under any other provision of law.
`(c) ANNUAL RENTAL PAYMENTS-
`(1) IN GENERAL- In determining the amount of annual rental payments to
be paid to owners and operators for converting highly erodible cropland
normally devoted to the production of an agricultural commodity to less
intensive use, the Secretary may consider, among other things, the amount
necessary to encourage owners or operators of highly erodible cropland to
participate in the program established by this subchapter.
`(2) METHOD OF DETERMINATION- The amounts payable to owners or operators
in the form of rental payments under contracts entered into under this
subchapter may be determined through--
`(A) the submission of bids for such contracts by owners and operators
in such manner as the Secretary may prescribe; or
`(B) such other means as the Secretary determines are
appropriate.
`(3) ACCEPTANCE OF CONTRACT OFFERS- In determining the acceptability of
contract offers, the Secretary may--
`(A) take into consideration the extent to which enrollment of the
land that is the subject of the contract offer would improve soil
resources, water quality, wildlife habitat, or provide other environmental
benefits; and
`(B) establish different criteria in various States and regions of the
United States based on the extent to which water quality or wildlife
habitat may be improved or erosion may be abated.
`(4) HARDWOOD TREE ACREAGE- In the case of acreage enrolled in the
conservation reserve established under this subchapter that is to be devoted
to hardwood trees, the Secretary may consider bids for contracts under this
subsection on a continuous basis.
`(d) CASH OR IN-KIND PAYMENTS-
`(1) IN GENERAL- Except as otherwise provided in this section, payments
under this subchapter--
`(A) shall be made in cash or in commodities in such amount and on
such time schedule as is agreed on and specified in the contract;
and
`(B) may be made in advance of determination of performance.
`(2) METHOD OF PROVIDING IN-KIND PAYMENTS- If the payment to an owner or
operator is made with in-kind commodities, the payment shall be made by the
Commodity Credit Corporation--
`(A) by delivery of the commodity involved to the owner or operator at
a warehouse or other similar facility located in the county in which the
highly erodible cropland is located or at such other location as is agreed
to by the Secretary and the owner or operator;
`(B) by the transfer of negotiable warehouse receipts; or
`(C) by such other method, including the sale of the commodity in
commercial markets, as is determined by the Secretary to be appropriate to
enable the owner or operator to receive efficient and expeditious
possession of the commodity.
`(A) COMMODITY CREDIT CORPORATION STOCKS- If stocks of a commodity
acquired by the Commodity Credit Corporation are not readily available to
make full payment in kind to the owner or operator, the Secretary may
substitute full or partial payment in cash for payment in kind.
`(B) SPECIAL CONSERVATION RESERVE ENHANCEMENT PROGRAM- Payments to an
owner or operator under a special conservation reserve enhancement program
described in subsection (f)(4) shall be in the form of cash only.
`(e) PAYMENTS ON DEATH, DISABILITY, OR SUCCESSION- If an owner or operator
that is entitled to a payment under a contract entered into under this
subchapter dies, becomes incompetent, is otherwise unable to receive the
payment, or is succeeded by another person that renders or completes the
required performance, the Secretary shall make the payment, in accordance with
regulations prescribed by the Secretary and without regard to any other
provision of law, in such manner as the Secretary determines is fair and
reasonable in light of all of the circumstances.
`(f) PAYMENT LIMITATION FOR RENTAL PAYMENTS-
`(1) IN GENERAL- The total amount of rental payments, including rental
payments made in the form of in-kind commodities, made to a person under
this subchapter for any fiscal year may not exceed $50,000.
`(A) IN GENERAL- The Secretary shall promulgate regulations--
`(i) defining the term `person' as used in this subsection;
and
`(ii) providing such terms and conditions as the Secretary
determines necessary to ensure a fair and reasonable application of the
limitation established by this subsection.
`(B) CORPORATIONS AND STOCKHOLDERS- The regulations promulgated by the
Secretary on December 18, 1970, under section 101 of the Agricultural Act
of 1970 (7 U.S.C. 1307), shall be used to determine whether corporations
and their stockholders may be considered as separate persons under this
subsection.
`(3) OTHER PAYMENTS- Rental payments received by an owner or operator
shall be in addition to, and not affect, the total amount of payments that
the owner or operator is otherwise eligible to receive under the Farm
Security and Rural Investment Act of 2002.
`(4) SPECIAL CONSERVATION RESERVE ENHANCEMENT PROGRAM-
`(A) IN GENERAL- The provisions of this subsection that limit payments
to any person, and section 1305(d) of the Agricultural Reconciliation Act
of 1987 (7 U.S.C. 1308 note; Public Law 100-203), shall not be applicable
to payments received by a State, political subdivision, or agency thereof
in connection with agreements entered into under a special conservation
reserve enhancement program carried out by that entity that has been
approved by the Secretary.
`(B) AGREEMENTS- The Secretary may enter into such agreements for
payments to States (including political subdivisions and agencies of
States) that the Secretary determines will advance the purposes of this
subchapter.
`(g) OTHER STATE OR LOCAL ASSISTANCE- In addition to any payment under
this subchapter, an owner or operator may receive cost share assistance,
rental payments, or tax benefits from a State or subdivision thereof for
enrolling land in the conservation reserve program.
`SEC. 1235. CONTRACTS.
`(a) OWNERSHIP OR OPERATION REQUIREMENTS-
`(1) IN GENERAL- Except as provided in paragraph (2), no contract shall
be entered into under this subchapter concerning land with respect to which
the ownership has changed in the 1-year period preceding the first year of
the contract period unless--
`(A) the new ownership was acquired by will or succession as a result
of the death of the previous owner;
`(B) the new ownership was acquired before January 1, 1985;
`(C) the Secretary determines that the land was acquired under
circumstances that give adequate assurance that the land was not acquired
for the purpose of placing the land in the program established by this
subchapter; or
`(D) the ownership change occurred due to foreclosure on the land and
the owner of the land immediately before the foreclosure exercises a right
of redemption from the mortgage holder in accordance with State
law.
`(2) EXCEPTIONS- Paragraph (1) shall not--
`(A) prohibit the continuation of an agreement by a new owner after an
agreement has been entered into under this subchapter; or
`(B) require a person to own the land as a condition of eligibility
for entering into the contract if the person--
`(i) has operated the land to be covered by a contract under this
section for at least 1 year preceding the date of the contract or since
January 1, 1985, whichever is later; and
`(ii) controls the land for the contract period.
`(b) SALES OR TRANSFERS- If, during the term of a contract entered into
under this subchapter, an owner or operator of land subject to the contract
sells or otherwise transfers the ownership or right of occupancy of the land,
the new owner or operator of the land may--
`(1) continue the contract under the same terms or conditions;
`(2) enter into a new contract in accordance with this subchapter;
or
`(3) elect not to participate in the program established by this
subchapter.
`(1) IN GENERAL- The Secretary may modify a contract entered into with
an owner or operator under this subchapter if--
`(A) the owner or operator agrees to the modification; and
`(B) the Secretary determines that the modification is
desirable--
`(i) to carry out this subchapter;
`(ii) to facilitate the practical administration of this subchapter;
or
`(iii) to achieve such other goals as the Secretary determines are
appropriate, consistent with this subchapter.
`(2) PRODUCTION OF AGRICULTURAL COMMODITIES- The Secretary may modify or
waive a term or condition of a contract entered into under this subchapter
in order to permit all or part of the land subject to such contract to be
devoted to the production of an agricultural commodity during a crop year,
subject to such conditions as the Secretary determines are
appropriate.
`(1) IN GENERAL- The Secretary may terminate a contract entered into
with an owner or operator under this subchapter if--
`(A) the owner or operator agrees to the termination; and
`(B) the Secretary determines that the termination would be in the
public interest.
`(2) NOTICE TO CONGRESSIONAL COMMITTEES- At least 90 days before taking
any action to terminate under paragraph (1) all conservation reserve
contracts entered into under this subchapter, the Secretary shall provide to
the Committee on Agriculture of the House of Representatives and the
Committee on Agriculture, Nutrition, and Forestry of the Senate written
notice of the action.
`(e) EARLY TERMINATION BY OWNER OR OPERATOR-
`(A) IN GENERAL- The Secretary shall allow a participant that entered
into a contract under this subchapter before January 1, 1995, to terminate
the contract at any time if the contract has been in effect for at least 5
years.
`(B) LIABILITY FOR CONTRACT VIOLATION- The termination shall not
relieve the participant of liability for a contract violation occurring
before the date of the termination.
`(C) NOTICE TO SECRETARY- The participant shall provide the Secretary
with reasonable notice of the desire of the participant to terminate the
contract.
`(2) CERTAIN LAND EXCEPTED- The following land shall not be subject to
an early termination of contract under this subsection:
`(A) Filterstrips, waterways, strips adjacent to riparian areas,
windbreaks, and shelterbelts.
`(B) Land with an erodibility index of more than 15.
`(C) Other land of high environmental value (including wetland), as
determined by the Secretary.
`(3) EFFECTIVE DATE- The contract termination shall become effective 60
days after the date on which the owner or operator submits the notice
required under paragraph (1)(C).
`(4) PRORATED RENTAL PAYMENT- If a contract entered into under this
subchapter is terminated under this subsection before the end of the fiscal
year for which a rental payment is due, the Secretary shall provide a
prorated rental payment covering the portion of the fiscal year during which
the contract was in effect.
`(5) RENEWED ENROLLMENT- The termination of a contract entered into
under this subchapter shall not affect the ability of the owner or operator
that requested the termination to submit a subsequent bid to enroll the land
that was subject to the contract into the conservation reserve.
`(6) CONSERVATION REQUIREMENTS- If land that was subject to a contract
is returned to production of an agricultural commodity, the conservation
requirements under subtitles B and C shall apply to the use of the land to
the extent that the requirements are similar to those requirements imposed
on other similar land in the area, except that the requirements may not be
more onerous than the requirements imposed on other land.
`SEC. 1235A. CONVERSION OF LAND SUBJECT TO CONTRACT TO OTHER CONSERVING
USES.
`(a) CONVERSION TO TREES-
`(1) IN GENERAL- The Secretary shall permit an owner or operator that
has entered into a contract under this subchapter that is in effect on
November 28, 1990, to convert areas of highly erodible cropland that are
subject to the contract, and that are devoted to vegetative cover, from that
use to hardwood trees, windbreaks, shelterbelts, or wildlife
corridors.
`(A) EXTENSION OF CONTRACT- With respect to a contract that is
modified under this section that provides for the planting of hardwood
trees, windbreaks, shelterbelts, or wildlife corridors, if the original
term of the contract was less than 15 years, the owner or operator may
extend the contract to a term of not to exceed 15 years.
`(B) COST SHARE ASSISTANCE- The Secretary shall pay 50 percent of the
cost of establishing conservation measures and practices authorized under
this subsection for which the Secretary determines the cost sharing is
appropriate and in the public interest.
`(b) CONVERSION TO WETLAND- The Secretary shall permit an owner or
operator that has entered into a contract under this subchapter that is in
effect on November 28, 1990, to restore areas of highly erodible cropland that
are devoted to vegetative cover under the contract to wetland if--
`(1) the areas are prior converted wetland;
`(2) the owner or operator of the areas enters into an agreement to
provide the Secretary with a long-term or permanent easement under
subchapter C covering the areas;
`(3) there is a high probability that the prior converted area can be
successfully restored to wetland status; and
`(4) the restoration of the areas otherwise meets the requirements of
subchapter C.
`(c) LIMITATION- The Secretary shall not incur, through a conversion under
this section, any additional expense on the acres, including the expense
involved in the original establishment of the vegetative cover, that would
result in cost share for costs under this section in excess of the costs that
would have been subject to cost share for the new practice had that practice
been the original practice.
`(d) CONDITION OF CONTRACT- An owner or operator shall as a condition of
entering into a contract under subsection (a) participate in the Forest
Stewardship Program established under section 5 of the Cooperative Forestry
Assistance Act of 1978 (16 U.S.C. 2103a).'.
(b) STUDY ON ECONOMIC EFFECTS-
(1) IN GENERAL- Not later than 18 months 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
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);
(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;
and
(D) the effect of enrollment on opportunities for recreational
activities (including hunting and fishing).
Subtitle C--Wetlands Reserve Program
SEC. 2201. REAUTHORIZATION.
Section 1237(c) of the Food Security Act of 1985 (16 U.S.C. 3837(c)) is
amended by striking `2002' and inserting `2007'.
SEC. 2202. ENROLLMENT.
Section 1237 of the Food Security Act of 1985 (16 U.S.C. 3837) is
amended--
(1) by striking subsection (b) and inserting the following:
`(b) ENROLLMENT CONDITIONS-
`(1) MAXIMUM ENROLLMENT- The total number of acres enrolled in the
wetlands reserve program shall not exceed 2,275,000 acres, of which, to the
maximum extent practicable, the Secretary shall enroll 250,000 acres in each
calendar year.
`(2) METHODS OF ENROLLMENT- The Secretary shall enroll acreage into the
wetlands reserve program through the use of permanent easements, 30-year
easements, restoration cost share agreements, or any combination of those
options.'; and
(2) by striking subsection (g).
SEC. 2203. EASEMENTS AND AGREEMENTS.
Section 1237A of the Food Security Act of 1985 (16 U.S.C. 3837a) is
amended by striking subsection (h).
SEC. 2204. CHANGES IN OWNERSHIP; AGREEMENT MODIFICATION; TERMINATION.
Section 1237E(a) of the Food Security Act of 1985 (16 U.S.C. 3837e(a)) is
amended by striking paragraph (2) and inserting the following:
`(2)(A) the ownership change occurred because of foreclosure on the
land; and
`(B) immediately before the foreclosure, the owner of the land exercises
a right of redemption from the mortgage holder in accordance with State law;
or'.
Subtitle D--Environmental Quality Incentives
SEC. 2301. ENVIRONMENTAL QUALITY INCENTIVES PROGRAM.
Chapter 4 of subtitle D of title XII of the Food Security Act of 1985 (16
U.S.C. 3839aa et seq.) is 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 goals, and to optimize environmental benefits, by--
`(1) assisting producers in complying with local, State, and national
regulatory requirements concerning--
`(A) soil, water, and air quality;
`(B) wildlife habitat; and
`(C) surface and ground water conservation;
`(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 assistance to producers to install and maintain
conservation practices 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; and
`(5) 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)).
`(A) IN GENERAL- The term `eligible land' means land on which
agricultural commodities or livestock are produced.
`(B) INCLUSIONS- The term `eligible land' includes--
`(v) private, nonindustrial forest land; and
`(vi) other agricultural land that the Secretary determines poses a
serious threat to soil, air, water, or related resources.
`(3) LAND MANAGEMENT PRACTICE- 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
resources.
`(4) 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.
`(5) PRACTICE- The term `practice' means 1 or more structural practices,
land management practices, and comprehensive nutrient management planning
practices.
`(6) 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 2007 fiscal years, the
Secretary shall provide cost-share payments and incentive payments to
producers that enter into contracts with the Secretary under the
program.
`(2) ELIGIBLE PRACTICES- With respect to practices implemented under
this chapter--
`(A) a producer that implements a structural practice in accordance
with this chapter shall be eligible to receive cost-share payments;
and
`(B) a producer that implements a land management practice, or
develops a comprehensive nutrient management plan, in accordance with this
chapter shall be eligible to receive incentive payments.
`(1) PRACTICES- A contract under this chapter may apply to 1 or more
structural practices, land management practices, and comprehensive nutrient
management practices.
`(2) TERM- A contract under this chapter shall have a term that--
`(A) at a minimum, is equal to the period beginning on the date on
which the contract is entered into and ending on the date that is 1 year
after the date on which all practices under the contract have been
implemented; but
`(B) not to exceed 10 years.
`(c) BIDDING DOWN- If the Secretary determines that the environmental
values of 2 or more applications for 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.
`(1) IN GENERAL- The Secretary shall make incentive payments in an
amount and at a rate determined by the Secretary to be necessary to
encourage a producer to perform 1 or more land management practices.
`(2) SPECIAL RULE- In determining the amount and rate of incentive
payments, the Secretary may accord great significance to a practice that
promotes residue, nutrient, pest, invasive species, or air quality
management.
`(f) MODIFICATION OR TERMINATION OF CONTRACTS-
`(1) VOLUNTARY MODIFICATION OR TERMINATION- The Secretary may modify or
terminate a contract entered into with a producer under this chapter
if--
`(A) the producer agrees to the modification or termination;
and
`(B) the Secretary determines that the modification or termination is
in the public interest.
`(2) INVOLUNTARY TERMINATION- The Secretary may terminate a contract
under this chapter if the Secretary determines that the producer violated
the contract.
`(g) ALLOCATION OF FUNDING- For each of fiscal years 2002 through 2007, 60
percent of the funds made available for cost-share payments and incentive
payments under this chapter shall be targeted at practices relating to
livestock production.
`SEC. 1240C. EVALUATION OF OFFERS AND PAYMENTS.
`In evaluating applications for cost-share payments and incentive
payments, the Secretary shall accord a higher priority to assistance and
payments that--
`(1) encourage the use by producers of cost-effective conservation
practices; and
`(2) address national conservation priorities.
`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
(including a comprehensive nutrient management plan, if applicable) 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; and
`(6) to comply with such additional provisions as the Secretary
determines are necessary to carry out the program plan.
`SEC. 1240E. ENVIRONMENTAL QUALITY INCENTIVES PROGRAM PLAN.
`(a) IN GENERAL- To be eligible to receive cost-share payments or
incentive payments under the program, a producer shall submit to the Secretary
for approval a plan of operations that--
`(1) specifies practices covered under the program;
`(2) includes such terms and conditions as the Secretary considers
necessary to carry out the program, including a description of the purposes
to be met by the implementation of the plan; and
`(3) in the case of a confined livestock feeding operation, provides for
development and implementation of a comprehensive nutrient management plan,
if applicable.
`(b) AVOIDANCE OF DUPLICATION- The Secretary shall, to the maximum extent
practicable, eliminate duplication of planning activities under the program
under this chapter 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 cost-share payments or incentive payments for developing
and implementing 1 or more practices, as appropriate; and
`(2) providing the producer with information and training to aid in
implementation of the plan.
`SEC. 1240G. LIMITATION ON PAYMENTS.
`An individual or entity may not receive, directly or indirectly,
cost-share or incentive payments under this chapter that, in the aggregate,
exceed $450,000 for all contracts entered into under this chapter by the
individual or entity during the period of fiscal years 2002 through 2007,
regardless of the number of contracts entered into under this chapter by the
individual or entity.
`SEC. 1240H. CONSERVATION INNOVATION GRANTS.
`(a) IN GENERAL- The Secretary may 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 provide 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 projects, such as--
`(A) market systems for pollution reduction; and
`(B) innovative conservation practices, including the storing of
carbon in the soil; and
`(3) leverage funds made available to carry out the program under this
chapter 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.
`SEC. 1240I. GROUND AND SURFACE WATER CONSERVATION.
`(a) ESTABLISHMENT- In carrying out the program under this chapter,
subject to subsection (b), the Secretary shall promote ground and surface
water conservation by providing cost-share payments, incentive payments, and
loans to producers to carry out eligible water conservation activities with
respect to the agricultural operations of producers, to--
`(1) improve irrigation systems;
`(2) enhance irrigation efficiencies;
`(A) the production of less water-intensive agricultural commodities;
or
`(4) improve the storage of water through measures such as water banking
and groundwater recharge;
`(5) mitigate the effects of drought; or
`(6) institute other measures that improve groundwater and surface water
conservation, as determined by the Secretary, in the agricultural operations
of producers.
`(b) NET SAVINGS- The Secretary may provide assistance to a producer under
this section only if the Secretary determines that the assistance will
facilitate a conservation measure that results in a net savings in groundwater
or surface water resources in the agricultural operation of the producer.
`(c) FUNDING- Of the funds of the Commodity Credit Corporation, in
addition to amounts made available under section 1241(a)(6) to carry out this
chapter, the Secretary shall use--
`(1) to carry out this section--
`(A) $25,000,000 for fiscal year 2002;
`(B) $45,000,000 for fiscal year 2003; and
`(C) $60,000,000 for each of fiscal years 2004 through 2007;
and
`(2) $50,000,000 to carry out water conservation activities in Klamath
Basin, California and Oregon, to be made available as soon as practicable
after the date of enactment of this section.'.
Subtitle E--Grassland Reserve
SEC. 2401. GRASSLAND RESERVE PROGRAM.
Chapter 2 of the Food Security Act of 1985 (as amended by section 2001) is
amended by adding at the end the following:
`Subchapter C--Grassland Reserve Program
`SEC. 1238N. GRASSLAND RESERVE PROGRAM.
`(a) ESTABLISHMENT- The Secretary shall establish a grassland reserve
program (referred to in this subchapter as the `program') to assist owners in
restoring and conserving eligible land described in subsection (c).
`(b) ENROLLMENT CONDITIONS-
`(1) MAXIMUM ENROLLMENT- The total number of acres enrolled in the
program shall not exceed 2,000,000 acres of restored or improved grassland,
rangeland, and pastureland.
`(2) METHODS OF ENROLLMENT-
`(A) IN GENERAL- Except as provided in subparagraph (B), the Secretary
shall enroll in the program from a willing owner not less than 40
contiguous acres of land through the use of--
`(i) a 10-year, 15-year, or 20-year rental agreement;
`(ii)(I) a 30-year rental agreement or permanent or 30-year
easement; or
`(II) in a State that imposes a maximum duration for easements, an
easement for the maximum duration allowed under State law.
`(B) WAIVER- The Secretary may enroll in the program such parcels of
land that are less than 40 acres as the Secretary determines are
appropriate to achieve the purposes of the program.
`(3) LIMITATION ON USE OF EASEMENTS AND RENTAL AGREEMENTS- Of the total
amount of funds expended under the program to acquire easements and rental
agreements described in paragraph (2)(A)--
`(A) not more than 40 percent shall be used for rental agreements
described in paragraph (2)(A)(i); and
`(B) not more than 60 percent shall be used for easements and rental
agreements described in paragraph (2)(A)(ii).
`(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) grassland, land that contains forbs, or shrubland (including
improved rangeland and pastureland); or
`(A) is located in an area that has been historically dominated by
grassland, forbs, or shrubland; and
`(B) has potential to serve as habitat for animal or plant populations
of significant ecological value if the land is--
`(i) retained in the current use of the land; or
`(ii) 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 agreement or easement.
`SEC. 1238O. REQUIREMENTS RELATING TO EASEMENTS AND AGREEMENTS.
`(a) REQUIREMENTS OF LANDOWNER-
`(1) IN GENERAL- To be eligible to enroll land in the program through
the grant of an easement, the owner of the land shall enter into an
agreement with the Secretary--
`(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.
`(2) AGREEMENTS- To be eligible to enroll land in the program under an
agreement, the owner or operator of the land shall agree--
`(A) to comply with the terms of the agreement (including any related
restoration agreements); and
`(B) to the suspension of any existing cropland base and allotment
history for the land under a program administered by the
Secretary.
`(b) TERMS OF EASEMENT OR RENTAL AGREEMENT- An easement or rental
agreement under subsection (a) shall--
`(A) common grazing practices, including maintenance and necessary
cultural practices, on the land in a manner that is consistent with
maintaining the viability of grassland, forb, and shrub species common to
that locality;
`(B) subject to appropriate restrictions during the nesting season for
birds in the local area that are in significant decline or are conserved
in accordance with Federal or State law, as determined by the Natural
Resources Conservation Service State conservationist, haying, mowing, or
harvesting for seed production; and
`(C) fire rehabilitation and construction of fire breaks and fences
(including placement of the posts necessary for fences);
`(A) the production of crops (other than hay), fruit trees, vineyards,
or any other agricultural commodity that requires breaking the soil
surface; and
`(B) except as permitted under this subsection or subsection (d), the
conduct of any other activity that would disturb the surface of the land
covered by the easement or rental agreement; and
`(3) include such additional provisions as the Secretary determines are
appropriate to carry out or facilitate the administration of this
subchapter.
`(c) EVALUATION AND RANKING OF EASEMENT AND RENTAL AGREEMENT
APPLICATIONS-
`(1) IN GENERAL- The Secretary shall establish criteria to evaluate and
rank applications for easements and rental agreements under this
subchapter.
`(2) CONSIDERATIONS- In establishing the criteria, the Secretary shall
emphasize support for--
`(B) plant and animal biodiversity; and
`(C) grassland, land that contains forbs, and shrubland 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, land that contains forbs, or
shrubland that is 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 the Federal
share of restoration payments and technical assistance).
`(e) VIOLATIONS- On a violation of the terms or conditions of an easement,
rental agreement, or restoration agreement entered into under this
section--
`(1) the easement or rental agreement shall remain in force; and
`(2) 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.
`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 to the owner in
accordance with subsection (b); and
`(2) make payments to the owner for the Federal share of the cost of
restoration in accordance with subsection (c).
`(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- In return for entering into a rental
agreement by an owner under this subchapter, the Secretary shall make annual
payments to the owner during the term of the rental agreement in an amount
that is not more than 75 percent of the grazing value of the land covered by
the contract.
`(c) FEDERAL SHARE OF RESTORATION- The Secretary shall make payments to an
owner under this section of not more than--
`(1) in the case of grassland, land that contains forbs, or shrubland
that has never been cultivated, 90 percent of the costs of carrying out
measures and practices necessary to restore functions and values of that
land; or
`(2) in the case of restored grassland, land that contains forbs, or
shrubland, 75 percent of those costs.
`(d) 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.
`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
protection of grassland, land that contains forbs, and shrubland;
`(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.'.
Subtitle F--Other Conservation Programs
SEC. 2501. AGRICULTURAL MANAGEMENT ASSISTANCE.
Section 524 of the Federal Crop Insurance Act (7 U.S.C. 1524) is amended
by striking subsection (b) and inserting the following:
`(b) AGRICULTURAL MANAGEMENT ASSISTANCE-
`(1) AUTHORITY- The Secretary shall provide financial assistance to
producers in the States of Connecticut, Delaware, Maryland, Massachusetts,
Maine, Nevada, New Hampshire, New Jersey, New York, Pennsylvania, Rhode
Island, Utah, Vermont, West Virginia, and Wyoming.
`(2) USES- A producer may use financial assistance provided under this
subsection to--
`(A) construct or improve--
`(i) watershed management structures; or
`(ii) irrigation structures;
`(B) plant trees to form windbreaks or to improve water
quality;
`(C) mitigate financial risk through production or marketing
diversification or resource conservation practices, including--
`(i) soil erosion control;
`(ii) integrated pest management;
`(iii) organic farming; or
`(iv) to develop and implement a plan to create marketing
opportunities for the producer, including through value-added
processing;
`(D) enter into futures, hedging, or options contracts in a manner
designed to help reduce production, price, or revenue risk;
`(E) enter into agricultural trade options as a hedging transaction to
reduce production, price, or revenue risk; or
`(F) conduct any other activity relating to an activity described in
subparagraphs (A) through (E), as determined by the Secretary.
`(3) PAYMENT LIMITATION- The total amount of payments made to a person
(as defined in section 1001(5) of the Food Security Act (7 U.S.C. 1308(5)))
under this subsection for any year may not exceed $50,000.
`(4) COMMODITY CREDIT CORPORATION-
`(A) IN GENERAL- The Secretary shall carry out this subsection through
the Commodity Credit Corporation.
`(i) IN GENERAL- Except as provided in clause (ii), the Commodity
Credit Corporation shall make available to carry out this subsection not
less than $10,000,000 for each fiscal year.
`(ii) EXCEPTION- For each of fiscal years 2003 through 2007, the
Commodity Credit Corporation shall make available to carry out this
subsection $20,000,000.'.
SEC. 2502. GRAZING, WILDLIFE HABITAT INCENTIVE, SOURCE WATER PROTECTION, AND
GREAT LAKES BASIN PROGRAMS.
(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. CONSERVATION OF PRIVATE GRAZING LAND.
`(a) PURPOSE- It is the purpose of this section to authorize the Secretary
to provide a coordinated technical, educational, and related assistance
program to conserve and enhance private grazing land resources and provide
related benefits to all citizens of the United States by--
`(1) establishing a coordinated and cooperative Federal, State, and
local grazing conservation program for management of private grazing
land;
`(2) strengthening technical, educational, and related assistance
programs that provide assistance to owners and managers of private grazing
land;
`(3) conserving and improving wildlife habitat on private grazing
land;
`(4) conserving and improving fish habitat and aquatic systems through
grazing land conservation treatment;
`(5) protecting and improving water quality;
`(6) improving the dependability and consistency of water
supplies;
`(7) identifying and managing weed, noxious weed, and brush encroachment
problems on private grazing land; and
`(8) integrating conservation planning and management decisions by
owners and managers of private grazing land, on a voluntary basis.
`(b) DEFINITIONS- In this section:
`(1) DEPARTMENT- The term `Department' means the Department of
Agriculture.
`(2) PRIVATE GRAZING LAND- The term `private grazing land' means
private, State-owned, tribally-owned, and any other non-federally owned
rangeland, pastureland, grazed forest land, and hay land.
`(3) SECRETARY- The term `Secretary' means the Secretary of
Agriculture.
`(c) PRIVATE GRAZING LAND CONSERVATION ASSISTANCE-
`(1) ASSISTANCE TO GRAZING LANDOWNERS AND OTHERS- Subject to the
availability of appropriations for this section, the Secretary shall
establish a voluntary program to provide technical, educational, and related
assistance to owners and managers of private grazing land and public
agencies, through 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;
`(H) identifying the opportunities and encouraging the diversification
of private grazing land enterprises; and
`(I) encouraging the use of sustainable grazing systems, such as
year-round, rotational, or managed grazing.
`(A) FUNDING- If funding is provided to carry out this section, it
shall be provided through a specific line-item in the annual
appropriations for the Natural Resources Conservation Service.
`(B) TECHNICAL ASSISTANCE AND EDUCATION- Personnel of the Department
trained in pasture and range management shall be made available under the
program to deliver and coordinate technical assistance and education to
owners and managers of private grazing land, at the request of the owners
and managers.
`(d) 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, current levels of technical support;
and
`(C) farmers and ranchers have a history of cooperatively working
together to address common needs in the promotion of their products and in
the drainage of wet areas through drainage districts.
`(2) ESTABLISHMENT OF GRAZING DEMONSTRATION- In accordance with
paragraph (3), the Secretary may establish 2 grazing management
demonstration districts at the recommendation of the grazing land
conservation initiative steering committee.
`(A) PROPOSAL- Within a reasonable time after the submission of a
request of an organization of farmers or ranchers engaged in grazing, the
Secretary shall propose that a grazing management district be
established.
`(B) FUNDING- The terms and conditions of the funding and operation of
the grazing management district shall be proposed by the
producers.
`(C) APPROVAL- The Secretary shall approve the proposal if the
Secretary determines that the proposal--
`(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
an application by farmers or ranchers.
`(E) AUTHORIZATION- The Secretary may use authority under the
Agricultural Adjustment Act (7 U.S.C. 601 et seq.), reenacted with
amendments by the Agricultural Marketing Agreement Act of 1937, to
operate, on a demonstration basis, a grazing management district.
`(F) ACTIVITIES- The activities of a grazing management district shall
be scientifically sound activities, as determined by the Secretary in
consultation with a technical advisory committee composed of ranchers,
farmers, and technical experts.
`(e) AUTHORIZATION OF APPROPRIATIONS- There is authorized to be
appropriated to carry out this section $60,000,000 for each of fiscal years
2002 through 2007.
`SEC. 1240N. WILDLIFE HABITAT INCENTIVE PROGRAM.
`(a) IN GENERAL- The Secretary, in consultation with the State technical
committees established under section 1261, shall establish within the Natural
Resources Conservation Service a program to be known as the wildlife habitat
incentive program (referred to in this section as the `program').
`(b) COST-SHARE PAYMENTS-
`(1) IN GENERAL- Under the program, the Secretary shall make cost-share
payments to landowners to develop--
`(A) upland wildlife habitat;
`(B) wetland wildlife habitat;
`(C) habitat for threatened and endangered species;
`(E) other types of wildlife habitat approved by the
Secretary.
`(2) INCREASED COST SHARE FOR LONG-TERM AGREEMENTS-
`(A) IN GENERAL- In a case in which the Secretary enters into an
agreement or contract to protect and restore plant and animal habitat that
has a term of at least 15 years, the Secretary may provide cost-share
payments in addition to amounts provided under paragraph (1).
`(B) FUNDING LIMITATION- The Secretary may use, for a fiscal year, not
more than 15 percent of funds made available under section 1241(a)(7) for
the fiscal year to carry out contracts and agreements described in
subparagraph (A).
`(c) REGIONAL EQUITY- In carrying out this section, the Secretary shall,
to the maximum extent practicable, ensure that regional issues of concern
relating to wildlife habitat are addressed in an appropriate manner.
`SEC. 1240O. 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 2007.
`SEC. 1240P. 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 2007.'.
(b) CONFORMING AMENDMENT- Sections 386 and 387 of the Federal Agriculture
Improvement and Reform Act of 1996 (16 U.S.C. 2005b, 3836a) are repealed.
SEC. 2503. FARMLAND PROTECTION PROGRAM.
(a) IN GENERAL- Chapter 2 of the Food Security Act of 1985 (as amended by
section 2001) 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), (iii), or (iv) 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 an incidental 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.
`(1) FARMLAND PROTECTION-
`(A) SHARE PROVIDED UNDER THIS SUBSECTION- The share of the cost of
purchasing a conservation easement or other interest in eligible land
described in subsection (a) provided under section 1241(d) shall not
exceed 50 percent of the appraised fair market value of the conservation
easement or other interest in eligible land.
`(B) 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 subsection (a) that is not provided under
section 1241(d), 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.
`(2) 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 subsection (a) are comparable in achieving the
purposes of this section, 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 subsection (a).
`SEC. 1238J. FARM VIABILITY PROGRAM.
`(a) IN GENERAL- The Secretary may provide to eligible entities identified
by the Secretary grants for use in carrying out farm viability programs
developed by the eligible entities and approved by the Secretary.
`(b) AUTHORIZATION OF APPROPRIATIONS- There are authorized to be
appropriated to the Secretary to carry out this section such sums as are
necessary for each of fiscal years 2002 through 2007.'.
(b) CONFORMING AMENDMENTS-
(A) Section 388 of the Federal Agriculture Improvement and Reform Act
of 1996 (16 U.S.C. 3830 note; Public Law 104-127) is repealed.
(B) Section 211 of the Agriculture Risk Protection Act of 2000 (16
U.S.C. 3830 note; Public Law 106-224) is amended--
(i) by striking subsection (a); and
(I) by striking the subsection designation and the subsection
heading;
(II) by redesignating paragraphs (1), (2), and (3) as subsections
(a), (b), and (c), respectively, and indenting
appropriately;
(III) in subsection (a) (as so redesignated), by redesignating
subparagraphs (A), (B), and (C) as paragraphs (1), (2), and (3),
respectively, and indenting appropriately;
(IV) in subsection (b) (as so redesignated), by striking
`ASSISTANCE' and inserting `ASSISTANCE'; and
(V) by striking `subsection' each place it appears and inserting
`section'.
(2) EFFECT ON CONTRACTS- The amendment made by paragraph (1)(A) 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. 2504. 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 in 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.
`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. 2505. SMALL WATERSHED REHABILITATION PROGRAM.
Section 14 of the Watershed Protection and Flood Prevention Act (16 U.S.C.
1012) is amended by striking subsection (h) and inserting the following:
`(1) FUNDS OF COMMODITY CREDIT CORPORATION- In carrying out this
section, of the funds of the Commodity Credit Corporation, the Secretary
shall make available, to remain available until expended--
`(A) $45,000,000 for fiscal year 2003;
`(B) $50,000,000 for fiscal year 2004;
`(C) $55,000,000 for fiscal year 2005;
`(D) $60,000,000 for fiscal year 2006;
`(E) $65,000,000 for fiscal year 2007; and
`(F) $0 for fiscal year 2008.
`(2) AUTHORIZATION OF APPROPRIATIONS- In addition to amounts made
available under paragraph (1), there are authorized to be appropriated to
the Secretary to carry out this section, to remain available until
expended--
`(A) $45,000,000 for fiscal year 2003;
`(B) $55,000,000 for fiscal year 2004;
`(C) $65,000,000 for fiscal year 2005;
`(D) $75,000,000 for fiscal year 2006; and
`(E) $85,000,000 for fiscal year 2007.'.
SEC. 2506. 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 Foundation (exclusive of any
symbol or logo of a governmental entity);'; and
(2) in subsection (d), by adding at the end the following:
`(3) USE OF SYMBOLS, SLOGANS, AND LOGOS OF THE FOUNDATION-
`(A) IN GENERAL- The Secretary may authorize the Foundation to use,
license, or transfer symbols, slogans, and logos of the
Foundation.
`(i) IN GENERAL- All revenue received by the Foundation from the
use, licensing, or transfer of symbols, slogans, and logos of the
Foundation 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.'.
SEC. 2507. DESERT TERMINAL LAKES.
`(a) IN GENERAL- Subject to subsection (b), as soon as practicable after
the date of enactment of this Act, the Secretary of Agriculture shall transfer
$200,000,000 of the funds of the Commodity Credit Corporation to the Bureau of
Reclamation Water and Related Resources Account, which funds shall--
`(1) be used by the Secretary of the Interior, acting through the
Commissioner of Reclamation, to provide water to at-risk natural desert
terminal lakes; and
`(2) remain available until expended.
`(b) LIMITATION- The funds described in subsection (a) shall not be used
to purchase or lease water rights.
Subtitle G--Conservation Corridor Demonstration Program
SEC. 2601. DEFINITIONS.
(1) DELMARVA PENINSULA- The term `Delmarva Peninsula' means land in the
States of Delaware, Maryland, and Virginia located on the east side of the
Chesapeake Bay.
(2) DEMONSTRATION PROGRAM- The term `demonstration program' means the
Conservation Corridor Demonstration Program established under this
subtitle.
(3) CONSERVATION CORRIDOR PLAN; PLAN- The terms `conservation corridor
plan' and `plan' mean a conservation corridor plan required to be submitted
and approved as a condition for participation in the demonstration
program.
(4) SECRETARY- The term `Secretary' means the Secretary of
Agriculture.
SEC. 2602. CONSERVATION CORRIDOR DEMONSTRATION PROGRAM.
(a) ESTABLISHMENT- The Secretary shall carry out a demonstration program,
to be known as the `Conservation Corridor Demonstration Program', under which
any of the States of Delaware, Maryland, and Virginia, a local government of
any 1 of those States with jurisdiction over land on the Delmarva Peninsula,
or a combination of those States, may submit a conservation corridor plan to
integrate agriculture and forestry conservation programs of the Department of
Agriculture with State and local efforts to address farm conservation
needs.
(b) SUBMISSION OF CONSERVATION CORRIDOR PLAN-
(1) SUBMISSION AND PROPOSAL- To be eligible to participate in the
demonstration program, a State, local government, or combination of States
referred to in subsection (a) shall--
(A) submit to the Secretary a conservation corridor plan
that--
(i) proposes specific criteria and commitment of resources in the
geographic region designated in the plan; and
(ii) describes how the linkage of Federal, State, and local
resources will improve--
(I) the economic viability of agriculture; and
(II) the environmental integrity of the watersheds in the Delmarva
Peninsula; and
(B) demonstrate to the Secretary that, in developing the plan, the
State, local government, or combination of States has solicited and taken
into account the views of local residents.
(2) DRAFT MEMORANDUM OF AGREEMENT- If the conservation corridor plan is
submitted by more than 1 State, the plan shall provide a draft memorandum of
agreement among entities in each submitting State.
(c) REVIEW OF PLAN- Not later than 90 days after the date of receipt of a
conservation corridor plan, the Secretary--
(1) shall review the plan; and
(2) may approve the plan for implementation under this subtitle if the
Secretary determines that the plan meets the requirements specified in
subsection (d).
(d) CRITERIA FOR APPROVAL- The Secretary may approve a conservation
corridor plan only if, as determined by the Secretary, the plan provides for
each of the following:
(1) VOLUNTARY ACTIONS- Actions taken under the plan--
(B) require the consent of willing landowners; and
(C) provide a mechanism by which the landowner may withdraw such
consent without adverse consequences other than the loss of any payments
to the landowner conditioned on continued enrollment of the land.
(2) LAND OF HIGH CONSERVATION VALUE- Criteria specified in the plan
ensure that land enrolled in each conservation program incorporated through
the plan are of exceptionally high conservation value, as determined by the
Secretary.
(3) NO EFFECT ON UNENROLLED LAND- The enrollment of land in a
conservation program incorporated through the plan will neither--
(A) adversely affect any adjacent land not so enrolled; nor
(B) create any buffer zone on such unenrolled land.
(4) GREATER BENEFITS- The conservation programs incorporated through the
plan provide benefits greater than the benefits that would likely be
achieved through individual application of the conservation programs.
(5) SUFFICIENT STAFFING- Staffing, considering both Federal and
non-Federal resources, is sufficient to ensure success of the plan.
SEC. 2603. IMPLEMENTATION OF CONSERVATION CORRIDOR PLAN.
(a) MEMORANDUM OF AGREEMENT- On approval of a conservation corridor plan,
the Secretary may enter into a memorandum of agreement with the State, local
government, or combination of States that submitted the plan to--
(1) guarantee specific program resources for implementation of the
plan;
(2) establish various compensation rates to the extent that the parties
to the agreement consider justified; and
(3) provide streamlined and integrated paperwork requirements.
(b) CONTINUED COMPLIANCE WITH PLAN APPROVAL CRITERIA- The Secretary shall
terminate the memorandum of agreement entered into under subsection (a) with
respect to an approved conservation corridor plan and cease the provision of
resources for implementation of the plan if the Secretary determines that, in
the implementation of the plan--
(1) the State, local government, or combination of States that submitted
the plan has deviated from--
(B) the criteria specified in section 2602(d) on which approval of the
plan was conditioned; or
(C) the cost-sharing requirements of section 2604(a) or any other
condition of the plan; or
(2) the economic viability of agriculture in the geographic region
designated in the plan is being hindered.
(c) PROGRESS REPORT- At the end of the 3-year period that begins on the
date on which funds are first provided with respect to a conservation corridor
plan under the demonstration program, the State, local government, or
combination of States that submitted the plan shall submit to the
Secretary--
(1) a report on the effectiveness of the activities carried out under
the plan; and
(2) an evaluation of the economic viability of agriculture in the
geographic region designated in the plan.
(d) DURATION- The demonstration program shall be carried out for not less
than 3 nor more than 5 years beginning on the date on which funds are first
provided under the demonstration program.
SEC. 2604. FUNDING REQUIREMENTS.
(1) REQUIRED NON-FEDERAL SHARE- Subject to paragraph (2), as a condition
on the approval of a conservation corridor plan, the Secretary shall require
the State and local participants to contribute financial resources
sufficient to cover at least 50 percent of the total cost of the activities
carried out under the plan.
(2) EXCEPTION- The Secretary may reduce the cost-sharing requirement in
the case of a specific project or activity under the demonstration program
on good cause and on demonstration that the project or activity is likely to
achieve extraordinary natural resource benefits.
(b) RESERVATION OF FUNDS- The Secretary may consider directing funds on a
priority basis to the demonstration program and to projects in areas
identified by the plan.
(c) AUTHORIZATION OF APPROPRIATIONS- There are authorized to be
appropriated such sums as are necessary to carry out this subtitle for each of
fiscal years 2002 through 2007.
Subtitle H--Funding and Administration
SEC. 2701. FUNDING AND ADMINISTRATION.
Subtitle E of the Food Security Act of 1985 is amended by striking
sections 1241 and 1242 (16 U.S.C. 3841, 3842) and inserting the following:
`SEC. 1241. COMMODITY CREDIT CORPORATION.
`(a) IN GENERAL- For each of fiscal years 2002 through 2007, the Secretary
shall use the funds, facilities, and authorities of the Commodity Credit
Corporation to carry out the following programs under subtitle D (including
the provision of technical assistance):
`(1) The conservation reserve program under subchapter B of chapter
1.
`(2) The wetlands reserve program under subchapter C of chapter 1.
`(3) The conservation security program under subchapter A of chapter
2.
`(4) The farmland protection program under subchapter B of chapter 2,
using, to the maximum extent practicable--
`(A) $50,000,000 in fiscal year 2002;
`(B) $100,000,000 in fiscal year 2003;
`(C) $125,000,000 in each of fiscal years 2004 and 2005;
`(D) $100,000,000 in fiscal year 2006; and
`(E) $97,000,000 in fiscal year 2007.
`(5) The grassland reserve program under subchapter C of chapter 2,
using, to the maximum extent practicable $254,000,000 for the period of
fiscal years 2003 through 2007.
`(6) The environmental quality incentives program under chapter 4,
using, to the maximum extent practicable--
`(A) $400,000,000 in fiscal year 2002;
`(B) $700,000,000 in fiscal year 2003;
`(C) $1,000,000,000 in fiscal year 2004;
`(D) $1,200,000,000 in each of fiscal years 2005 and 2006;
and
`(E) $1,300,000,000 in fiscal year 2007.
`(7) The wildlife habitat incentives program under section 1240N, using,
to the maximum extent practicable--
`(A) $15,000,000 in fiscal year 2002;
`(B) $30,000,000 in fiscal year 2003;
`(C) $60,000,000 in fiscal year 2004; and
`(D) $85,000,000 in each of fiscal years 2005 through 2007.
`(b) SECTION 11- Nothing in this section affects the limit on expenditures
for technical assistance imposed by section 11 of the Commodity Credit
Corporation Charter Act (15 U.S.C. 714i).
`(c) REGIONAL EQUITY- Before April 1 of each fiscal year, the Secretary
shall give priority for funding under the conservation programs under subtitle
D (excluding the conservation reserve program under subchapter B of chapter 1,
the wetlands reserve program under subchapter C of chapter 1, and the
conservation security program under subchapter A of chapter 2) to approved
applications in any State that has not received, for the fiscal year, an
aggregate amount of at least $12,000,000 for those conservation programs.
`SEC. 1242. DELIVERY OF TECHNICAL ASSISTANCE.
`(a) IN GENERAL- The Secretary shall provide technical assistance under
this title to a producer eligible for that assistance--
`(2) at the option of the producer, through a payment, as determined by
the Secretary, to the producer for an approved third party, if
available.
`(b) CERTIFICATION OF THIRD-PARTY PROVIDERS-
`(1) IN GENERAL- Not later than 180 days after the date of enactment of
the Farm Security and Rural Investment Act of 2002, the Secretary shall, by
regulation, establish a system for--
`(A) approving individuals and entities to provide technical
assistance to carry out programs under this title (including criteria for
the evaluation of providers or potential providers of technical
assistance); and
`(B) establishing the amounts and methods for payments for that
assistance.
`(2) EXPERTISE- In promulgating regulations to carry out this subsection
the Secretary shall ensure that persons with expertise in the technical
aspects of conservation planning, watershed planning, environmental
engineering (including commercial entities, nonprofit entities, State or
local governments or agencies, and other Federal agencies), are eligible to
become approved providers of the technical assistance.
`(A) IN GENERAL- A person that has provided technical assistance in
accordance with an agreement between the person and the Secretary before
the date of enactment of the Farm Security and Rural Investment Act of
2002 may continue to provide technical assistance under this section until
the date on which the Secretary establishes the system described in
paragraph (1).
`(B) EVALUATION- If a person described in subparagraph (A) seeks to
continue to provide technical assistance after the date referred to in
subparagraph (A), the Secretary shall evaluate the person using criteria
referred to in paragraph (1).
`(4) NON-FEDERAL ASSISTANCE- The Secretary may request the services of,
and enter into cooperative agreements or contracts with, non-Federal
entities to assist the Secretary in providing technical assistance necessary
to develop and implement conservation programs under this title.'.
SEC. 2702. REGULATIONS.
(a) IN GENERAL- Except as otherwise provided in this title or an amendment
made by this title, not later than 90 days after the date of enactment of this
Act, the Secretary of Agriculture, in consultation with the Commodity Credit
Corporation, shall promulgate such regulations as are necessary to implement
this title.
(b) APPLICABLE AUTHORITY- The promulgation of regulations under subsection
(a) and administration of this title--
(A) be carried out without regard to chapter 35 of title 44, United
States Code (commonly known as the Paperwork Reduction Act); and
(B) 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
(A) be promulgated with an opportunity for notice and comment;
or
(B) if determined to be appropriate by the Secretary of Agriculture or
the Commodity Credit Corporation, as an interim rule effective on
publication with an opportunity for notice and comment.
(c) CONGRESSIONAL REVIEW OF AGENCY RULEMAKING- In carrying out this
section, the Secretary shall use the authority provided under section 808(2)
of title 5, United States Code.
TITLE III--TRADE
Subtitle A--Agricultural Trade Development and Assistance Act of 1954
and Related Statutes
SEC. 3001. UNITED STATES POLICY.
Section 2 of the Agricultural Trade Development and Assistance Act of 1954
(7 U.S.C. 1691) is amended--
(1) in paragraph (4), by striking `and' at the end;
(2) in paragraph (5), by striking the period at the end and inserting `;
and'; and
(3) by adding at the end the following:
`(6) prevent conflicts.'.
SEC. 3002. 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, consistent with section 201, to
assist development of 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) STREAMLINED PROGRAM MANAGEMENT-
`(1) IMPROVEMENTS- Not later than 1 year after the date of enactment of
this subsection, the Administrator shall--
`(A) streamline program procedures and guidelines under this title for
agreements with eligible organizations for programs in 1 or more
countries; and
`(B) effective beginning with fiscal year 2004, to the maximum extent
practicable, incorporate the changes into the procedures and guidelines
for programs and the guidelines for resource requests.
`(2) STREAMLINED PROCEDURES AND GUIDELINES- In carrying out paragraph
(1), the Administrator shall make improvements in the Office of Food for
Peace management systems that include--
`(A) expedition of and greater consistency in the program review and
approval process under this title;
`(B) streamlining of information collection and reporting systems by
identifying the critical information that needs to be monitored and
reported on by eligible organizations; and
`(C) for approved programs, provision of greater flexibility for an
eligible organization to make modifications in program activities to
achieve program results with streamlined procedures for reporting such
modifications.
`(A) IN GENERAL- Paragraphs (1) and (2) shall be carried out in
accordance with section 205 and subsections (b) and (c) of section
207.
`(B) CONSULTATION WITH CONGRESSIONAL COMMITTEES- Not later than 180
days after the date of enactment of this subsection, the Administrator
shall consult with 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 on progress made in
carrying out this subsection.
`(4) REPORT- Not later than 270 days after the date of enactment of this
subsection, 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 on the improvements made and planned upgrades in the information
management, procurement, and financial management systems to administer this
title.'.
SEC. 3003. 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. 3004. LEVELS OF ASSISTANCE.
Section 204(a) of the Agricultural Trade Development and Assistance Act of
1954 (7 U.S.C. 1724(a)) is amended--
(1) by striking `1996 through 2002' each place it appears and inserting
`2002 through 2007';
(2) in paragraph (1), by striking `2,025,000' and inserting `2,500,000';
and
(3) in paragraph (2), by striking `1,550,000 metric tons' and inserting
`1,875,000 metric tons'.
SEC. 3005. 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 `2007'.
SEC. 3006. MAXIMUM LEVEL OF EXPENDITURES.
Section 206 of the Agricultural Trade Development and Assistance Act of
1954 (7 U.S.C. 1726) is repealed.
SEC. 3007. 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 receipt by 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 annual policy guidance'; and
(3) by adding at the end the following:
`(1) IN GENERAL- The Administrator is encouraged to 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.'.
SEC. 3008. 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 2007'.
SEC. 3009. SALE PROCEDURE.
(a) IN GENERAL- Section 403 of the Agricultural Trade Development and
Assistance Act of 1954 (7 U.S.C. 1733) is amended--
(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 agricultural commodities described in
paragraph (1) shall be made at a reasonable market price in the economy
where the agricultural commodity is to be sold, as determined by the
Secretary or the Administrator, as appropriate.'; and
(2) by adding at the end the following:
`(1) IN GENERAL- Subsections (b) and (h) shall apply to sales of
commodities in recipient countries to generate proceeds to carry out
projects under--
`(B) section 416(b) of the Agricultural Act of 1949 (7 U.S.C.
1431(b)); and
`(C) the Food for Progress Act of 1985 (7 U.S.C. 1736o).
`(2) CURRENCY- A sale described in paragraph (1) may be made in United
States dollars or other currencies.'.
(b) CONFORMING AMENDMENTS-
(1) Section 416(b) of the Agricultural Act of 1949 (7 U.S.C. 1431(b)) is
amended by adding at the end the following:
`(10) SALE PROCEDURE- In approving sales of commodities under this
subsection, the Secretary shall follow the sale procedure described in
section 403(l) of the Agricultural Trade Development and Assistance Act of
1954.'.
(2) Subsection (f) of the Food for Progress Act of 1985 (7 U.S.C.
1736o(f)) is amended by adding at the end the following:
`(5) SALE PROCEDURE- In making sales of eligible commodities under this
section, the Secretary shall follow the sale procedure described in section
403(l) of the Agricultural Trade Development and Assistance Act of
1954.'.
SEC. 3010. 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 2007'.
SEC. 3011. TRANSPORTATION AND RELATED COSTS.
Section 407(c)(1) of the Agricultural Trade Development and Assistance Act
of 1954 (7 U.S.C. 1736a(c)(1)) is amended--
(1) by striking `The Administrator' and inserting the following:
`(A) IN GENERAL- The Administrator'; and
(2) by adding at the end the following:
`(B) CERTAIN COMMODITIES MADE AVAILABLE FOR NONEMERGENCY ASSISTANCE- In
the case of agricultural commodities made available for nonemergency
assistance under title II for least developed countries that meet the
poverty and other eligibility criteria established by the International Bank
for Reconstruction and Development for financing under the International
Development Association, the Administrator may pay the transportation costs
incurred in moving the agricultural commodities from designated points of
entry or ports of entry abroad to storage and distribution sites and
associated storage and distribution costs.'.
SEC. 3012. 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 `2007'.
SEC. 3013. MICRONUTRIENT FORTIFICATION PROGRAMS.
Section 415 of the Agricultural Trade Development and Assistance Act of
1954 (7 U.S.C. 1736g-2) is amended--
(1) in the section heading, by striking `pilot program.' and inserting
`programs.';
(A) by redesignating paragraphs (1) and (2) as subparagraphs (A) and
(B), respectively, and adjusting the margins appropriately;
(B) by striking the first sentence and inserting the
following:
`(1) PROGRAMS- Not later than September 30, 2003, the Administrator, in
consultation with the Secretary, shall establish micronutrient fortification
programs.'; and
(C) in the second sentence, by striking `The purpose of the program'
and inserting the following:
`(2) PURPOSE- The purpose of a program'; and
(D) in paragraph (2) (as designated by subparagraph (C))--
(i) in subparagraph (A), by striking `and' at the end;
(ii) in subparagraph (B)--
(I) by striking `whole'; and
(II) by striking the period at the end and inserting `; and';
and
(iii) by adding at the end the following:
`(C) assess and apply technologies and systems to improve and ensure
the quality, shelf life, bioavailability, and safety of fortified food aid
commodities, and products of those commodities, that are provided to
developing countries, by using the same mechanism that was used to assess
the micronutrient fortification program in the report entitled
`Micronutrient Compliance Review of Fortified P.L. 480 Commodities',
published October 2001 with funds from the Bureau for Humanitarian
Response of the United States Agency for International
Development.';
(3) in subsection (b), by striking `the pilot program' and inserting `a
program under this section';
(4) 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';
(C) by striking `including' and inserting `such as'; and
(D) by striking `and iodine' and inserting `iodine, and folic acid';
and
(A) by striking `the pilot program' and inserting `programs';
and
(B) by striking `2002' and inserting `2007'.
SEC. 3014. JOHN OGONOWSKI FARMER-TO-FARMER PROGRAM.
Section 501 of the Agricultural Trade Development and Assistance Act of
1954 (7 U.S.C. 1737) is amended to read as follows:
`SEC. 501. JOHN OGONOWSKI FARMER-TO-FARMER PROGRAM.
`(a) DEFINITIONS- In this section:
`(1) CARIBBEAN BASIN COUNTRY- The term `Caribbean Basin country' means a
country eligible for designation as a beneficiary country under section 212
of the Caribbean Basin Economic Recovery Act (19 U.S.C. 2702).
`(2) EMERGING MARKET- The term `emerging market' means a country that
the Secretary determines--
`(A) is taking steps toward a market-oriented economy through the
food, agriculture, or rural business sectors of the economy of the
country; and
`(B) has the potential to provide a viable and significant market for
United States agricultural commodities or products of United States
agricultural commodities.
`(3) MIDDLE INCOME COUNTRY- The term `middle income country' means a
country that has developed economically to the point at which the country
does not receive bilateral development assistance from the United
States.
`(4) SUB-SAHARAN AFRICAN COUNTRY- The term `sub-Saharan African country'
has the meaning given the term in section 107 of the Trade and Development
Act of 2000 (19 U.S.C. 3706).
`(b) PROVISION- Notwithstanding any other provision of law, to further
assist developing countries, middle-income countries, emerging markets,
sub-Saharan African countries, and Caribbean Basin countries to increase farm
production and farmer incomes, the President may--
`(1) establish and administer a program, to be known as the `John
Ogonowski Farmer-to-Farmer Program', of farmer-to-farmer assistance between
the United States and such countries to assist in--
`(A) increasing food production and distribution; and
`(B) improving the effectiveness of the farming and marketing
operations of agricultural producers in those countries;
`(2) use United States agricultural producers, agriculturalists,
colleges and universities (including historically black colleges and
universities, land grant colleges or universities, and foundations
maintained by colleges or universities), private agribusinesses, private
organizations (including grassroots organizations with an established and
demonstrated capacity to carry out such a bilateral exchange program),
private corporations, and nonprofit farm organizations to work in
conjunction with agricultural producers and farm organizations in those
countries, on a voluntary basis--
`(A) to improve agricultural and agribusiness operations and
agricultural systems in those countries, including improving--
`(i) animal care and health;
`(ii) field crop cultivation;
`(iii) fruit and vegetable growing;
`(iv) livestock operations;
`(v) food processing and packaging;
`(ix) agricultural extension; and
`(B) to strengthen cooperatives and other agricultural groups in those
countries;
`(3) transfer the knowledge and expertise of United States agricultural
producers and businesses, on an individual basis, to those countries while
enhancing the democratic process by supporting private and public
agriculturally related organizations that request and support technical
assistance activities through cash and in-kind services;
`(4) to the maximum extent practicable, make grants to or enter into
contracts or other cooperative agreements with private voluntary
organizations, cooperatives, land grant universities, private agribusiness,
or nonprofit farm organizations to carry out this section (except that any
such contract or other agreement may obligate the United States to make
outlays only to the extent that the budget authority for such outlays is
available under subsection (d) or has otherwise been provided in advance in
appropriation Acts);
`(5) coordinate programs established under this section with other
foreign assistance programs and activities carried out by the United States;
and
`(6) to the extent that local currencies can be used to meet the costs
of a program established under this section, augment funds of the United
States that are available for such a program through the use, within the
country in which the program is being conducted, of--
`(A) foreign currencies that accrue from the sale of agricultural
commodities and products under this Act; and
`(B) local currencies generated from other types of foreign assistance
activities.
`(c) SPECIAL EMPHASIS ON SUB-SAHARAN AFRICAN AND CARIBBEAN BASIN
COUNTRIES-
`(1) FINDINGS- Congress finds that--
`(A) agricultural producers in sub-Saharan African and Caribbean Basin
countries need training in agricultural techniques that are appropriate
for the majority of eligible agricultural producers in those countries,
including training in--
`(i) standard growing practices;
`(ii) insecticide and sanitation procedures; and
`(iii) other agricultural methods that will produce increased yields
of more nutritious and healthful crops;
`(B) agricultural producers in the United States (including
African-American agricultural producers) and banking and insurance
professionals have agribusiness expertise that would be invaluable for
agricultural producers in sub-Saharan African and Caribbean Basin
countries;
`(C) a commitment by the United States is appropriate to support the
development of a comprehensive agricultural skills training program for
those agricultural producers that focuses on--
`(i) improving knowledge of insecticide and sanitation procedures to
prevent crop destruction;
`(ii) teaching modern agricultural techniques that would facilitate
a continual analysis of crop production, including--
`(I) the identification and development of standard growing
practices; and
`(II) the establishment of systems for
recordkeeping;
`(iii) the use and maintenance of agricultural equipment that is
appropriate for the majority of eligible agricultural producers in
sub-Saharan African or Caribbean Basin countries;
`(iv) the expansion of small agricultural operations into
agribusiness enterprises by increasing access to credit for agricultural
producers through--
`(I) the development and use of village banking systems;
and
`(II) the use of agricultural risk insurance pilot products;
and
`(v) marketing crop yields to prospective purchasers (including
businesses and individuals) for local needs and export; and
`(D) programs that promote the exchange of agricultural knowledge and
expertise through the exchange of American and foreign agricultural
producers have been effective in promoting improved agricultural
techniques and food security and the extension of additional resources to
such farmer-to-farmer exchanges is warranted.
`(2) GOALS FOR PROGRAMS CARRIED OUT IN SUB-SAHARAN AFRICAN AND CARIBBEAN
COUNTRIES- The goals of programs carried out under this section in
sub-Saharan African and Caribbean Basin countries shall be--
`(A) to expand small agricultural operations in those countries into
agribusiness enterprises by increasing access to credit for agricultural
producers through--
`(i) the development and use of village banking systems;
and
`(ii) the use of agricultural risk insurance pilot
products;
`(B) to provide training to agricultural producers in those countries
that will--
`(i) enhance local food security; and
`(ii) help mitigate and alleviate hunger;
`(C) to provide training to agricultural producers in those countries
in groups to encourage participants to share and pass on to other
agricultural producers in the home communities of the participants, the
information and skills obtained from the training, rather than merely
retaining the information and skills for the personal enrichment of the
participants; and
`(D) to maximize the number of beneficiaries of the programs in
sub-Saharan African and Caribbean Basin countries.
`(d) MINIMUM FUNDING- Notwithstanding any other provision of law, in
addition to any funds that may be specifically appropriated to carry out this
section, not less than 0.5 percent of the amounts made available for each of
fiscal years 2002 through 2007 to carry out this Act shall be used to carry
out programs under this section, with--
`(1) not less than 0.2 percent to be used for programs in developing
countries; and
`(2) not less than 0.1 percent to be used for programs in sub-Saharan
African and Caribbean Basin countries.
`(e) AUTHORIZATION OF APPROPRIATIONS-
`(1) IN GENERAL- There is authorized to be appropriated to carry out
programs under this section in sub-Saharan African and Caribbean Basin
countries $10,000,000 for each of fiscal years 2002 through 2007.
`(2) ADMINISTRATIVE COSTS- Not more than 5 percent of the funds made
available for a fiscal year under paragraph (1) may be used to pay
administrative costs incurred in carrying out programs in sub-Saharan
African and Caribbean Basin countries.'.
Subtitle B--Agricultural Trade Act of 1978
SEC. 3101. EXPORTER ASSISTANCE 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.
`To provide a comprehensive source of information to facilitate exports of
United States agricultural commodities, the Secretary shall maintain on a
website on the Internet information to assist exporters and potential
exporters of United States agricultural commodities.'.
SEC. 3102. EXPORT CREDIT GUARANTEE PROGRAM.
(a) TERMS OF SUPPLIER CREDIT PROGRAM- Section 202(a) of the Agricultural
Trade Act of 1978 (7 U.S.C. 5622(a)) is amended by adding at the end the
following:
`(3) EXTENDED SUPPLIER CREDITS-
`(A) IN GENERAL- Subject to the appropriation of funds under
subparagraph (B), in carrying out this section, the Commodity Credit
Corporation may issue guarantees for the repayment of credit made
available for a period of more than 180 days, but not more than 360 days,
by a United States exporter to a buyer in a foreign country.
`(B) AUTHORIZATION OF APPROPRIATIONS- There are authorized to be
appropriated such sums as are necessary to fund the additional costs
attributable to the portion of any guarantee issued under this paragraph
to cover the repayment of credit beyond the initial 180-day
period.'.
(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 2007'.
(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) CONSULTATION ON AGRICULTURAL EXPORT CREDIT PROGRAMS- The Secretary
and the United States Trade Representative shall consult on a regular basis
with 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 on the status of multilateral
negotiations regarding agricultural export credit programs.'.
(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
`2007'.
SEC. 3103. MARKET ACCESS PROGRAM.
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 $90,000,000 for fiscal
year 2001, $100,000,000 for fiscal year 2002, $110,000,000 for fiscal year
2003, $125,000,000 for fiscal year 2004, $140,000,000 for fiscal year
2005, and $200,000,000 for each of fiscal years 2006 and 2007, of the
funds of, or an equal value of commodities owned by, the Commodity Credit
Corporation; and'; and
(4) by adding at the end the following:
`(2) PROGRAM PRIORITIES- In providing any amount of funds made available
under paragraph (1)(A) for any fiscal year that is in excess of the amount
made available under paragraph (1)(A) for fiscal year 2001, the Secretary
shall, to the maximum extent practicable--
`(A) give equal consideration to--
`(i) proposals submitted by organizations that were participating
organizations in prior fiscal years; and
`(ii) proposals submitted by eligible trade organizations that have
not previously participated in the program established under this title;
and
`(B) give equal consideration to--
`(i) proposals submitted for activities in emerging markets;
and
`(ii) proposals submitted for activities in markets other than
emerging markets.'.
SEC. 3104. 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 2007'.
(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; and
(2) by striking clause (ii) and inserting the following:
`(ii) in the case of a monopolistic state trading enterprise engaged
in the export sale of an agricultural commodity, implements a pricing
practice that is inconsistent with sound commercial
practice;
`(iii) provides a subsidy that--
`(I) decreases market opportunities for United States exports;
or
`(II) unfairly distorts an agricultural market to the detriment of
United States exporters;
`(iv) imposes an unfair technical barrier to trade,
including--
`(I) a trade restriction or commercial requirement (such as a
labeling requirement) that adversely affects a new technology
(including biotechnology); and
`(II) an unjustified sanitary or phytosanitary restriction
(including any restriction that, in violation of the Uruguay Round
Agreements, is not based on scientific principles;
`(v) imposes a rule that unfairly restricts imports of United States
agricultural commodities in the administration of tariff rate quotas;
or
`(vi) fails to adhere to, or circumvents any obligation under, any
provision of a trade agreement with the United States.'.
SEC. 3105. FOREIGN MARKET DEVELOPMENT COOPERATOR PROGRAM.
(a) VALUE-ADDED PRODUCTS-
(1) IN GENERAL- Section 702(a) of the Agricultural Trade Act of 1978 (7
U.S.C. 5722(a)) is amended by inserting `, with a continued significant
emphasis on the importance of the export of value-added United States
agricultural products into emerging markets' after `products'.
(2) REPORT TO CONGRESS- Section 702 of the Agricultural Trade Act of
1978 (7 U.S.C. 5722) is amended by adding at the end the following:
`(c) REPORT TO CONGRESS- The Secretary shall annually 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 activities under this section describing
the amount of funding provided, the types of programs funded, the value-added
products that have been targeted, and the foreign markets for those products
that have been developed.'.
(b) FUNDING- 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 amount of $34,500,000 for each of
fiscal years 2002 through 2007.
`(b) PROGRAM PRIORITIES- In providing any amount of funds or commodities
made available under subsection (a) for any fiscal year that is in excess of
the amount made available under this section for fiscal year 2001, the
Secretary shall, to the maximum extent practicable--
`(1) give equal consideration to--
`(A) proposals submitted by organizations that were participating
organizations in prior fiscal years; and
`(B) proposals submitted by eligible trade organizations that have not
previously participated in the program established under this title;
and
`(2) give equal consideration to--
`(A) proposals submitted for activities in emerging markets;
and
`(B) proposals submitted for activities in markets other than emerging
markets.'.
SEC. 3106. FOOD FOR PROGRESS.
(a) IN GENERAL- Subsections (f)(3), (k), and (l)(1) of the Food for
Progress Act of 1985 (7 U.S.C. 1736o) are each amended by striking `2002' and
inserting `2007'.
(b) DEFINITIONS; PROGRAM-
(1) IN GENERAL- The Food for Progress Act of 1985 (7 U.S.C. 1736o) is
amended by striking subsections (b) and (c) and inserting the
following:
`(b) DEFINITIONS- In this section:
`(1) COOPERATIVE- The term `cooperative' has the meaning given the term
in section 402 of the Agricultural Trade Development and Assistance Act of
1954 (7 U.S.C. 1732).
`(2) CORPORATION- The term `Corporation' means the Commodity Credit
Corporation.
`(3) DEVELOPING COUNTRY- The term `developing country' has the meaning
given the term in section 402 of the Agricultural Trade Development and
Assistance Act of 1954 (7 U.S.C. 1732).
`(4) ELIGIBLE COMMODITY- The term `eligible commodity' means an
agricultural commodity, or a product of an agricultural commodity, in
inventories of the Corporation or acquired by the President or the
Corporation for disposition through commercial purchases under a program
authorized under this section.
`(5) ELIGIBLE ENTITY- The term `eligible entity' means--
`(A) the government of an emerging agricultural country;
`(B) an intergovernmental organization;
`(C) a private voluntary organization;
`(D) a nonprofit agricultural organization or cooperative;
`(E) a nongovernmental organization; and
`(F) any other private entity.
`(6) 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.
`(7) NONGOVERNMENTAL ORGANIZATION- The term `nongovernmental
organization' has the meaning given the term in section 402 of the
Agricultural Trade Development and Assistance Act of 1954 (7 U.S.C.
1732).
`(8) PRIVATE VOLUNTARY ORGANIZATION- The term `private voluntary
organization' has the meaning given the term in section 402 of the
Agricultural Trade Development and Assistance Act of 1954 (7 U.S.C.
1732).
`(9) PROGRAM- The term `program' means a food assistance or development
initiative proposed by an eligible entity and approved by the President
under this section.
`(c) PROGRAM- In order to use the food resources of the United States more
effectively in support of developing countries, and countries that are
emerging democracies that have made commitments to introduce or expand free
enterprise elements in their agricultural economies through changes in
commodity pricing, marketing, input availability, distribution, and private
sector involvement, the President may enter into agreements with eligible
entities to furnish to the countries eligible commodities made available under
subsections (e) and (f).'.
(2) CONFORMING AMENDMENTS- The Food for Progress Act of 1985 (7 U.S.C.
136o) is amended--
(A) in the first sentence of subsection (d), by striking
`food';
(B) in subsection (l)(2), by striking `agricultural';
(C) in subsection (m)(1), by striking `these';
(D) in subsections (d), (e), (f), (h), (j), (l), and (m), by striking
`commodities' each place it appears and inserting `eligible
commodities';
(E) in subsections (e), (f), and (l), by striking `Commodity Credit
Corporation' each place it appears and inserting `Corporation';
and
(F) by striking subsection (o).
(c) CONSIDERATION FOR AGREEMENTS- Subsection (d) of the Food for Progress
Act of 1985 (7 U.S.C. 1736o(d)) is amended by striking `(d) In determining'
and inserting `(d) CONSIDERATION FOR AGREEMENTS- In determining'.
(d) FUNDING OF ELIGIBLE COMMODITIES- Subsection (e) of the Food for
Progress Act of 1985 (7 U.S.C. 1736o(e)) is amended--
(1) by striking `(e)' and inserting `(e) FUNDING OF ELIGIBLE
COMMODITIES- ';
(2) in paragraph (2), by inserting `, and subsection (g) does not apply
to eligible commodities furnished on a grant basis or on credit terms under
that title' before the period at the end; and
(3) by adding at the end the following:
`(5) NO EFFECT ON DOMESTIC PROGRAMS- The President shall not make an
eligible commodity available for disposition under this section in any
amount that will reduce the amount of the eligible commodity that is
traditionally made available through donations to domestic feeding programs
or agencies, as determined by the President.'.
(e) PROVISION OF ELIGIBLE COMMODITIES TO DEVELOPING COUNTRIES- Subsection
(f) of the Food for Progress Act of 1985 (7 U.S.C. 1736o(f)) is amended--
(1) by striking `(f)' and inserting `(f) PROVISION OF ELIGIBLE
COMMODITIES TO DEVELOPING COUNTRIES- '; and
(2) in paragraph (3), by striking `$30,000,000 (or in the case of fiscal
year 1999, $35,000,000)' and inserting `$40,000,000'.
(f) MINIMUM TONNAGE- The Food for Progress Act of 1985 is amended by
striking subsection (g) (7 U.S.C. 1736o(g)) and inserting the following:
`(g) MINIMUM TONNAGE- Subject to subsection (f)(3), not less than 400,000
metric tons of eligible commodities may be provided under this section for the
program for each of fiscal years 2002 through 2007.'.
(g) PROHIBITION ON RESALE OR TRANSSHIPMENT OF ELIGIBLE COMMODITIES-
Subsection (h) of the Food for Progress Act of 1985 (7 U.S.C. 1736o(h)) is
amended by striking `(h) An agreement' and inserting `(h) PROHIBITION ON
RESALE OR TRANSSHIPMENT OF ELIGIBLE COMMODITIES- An agreement'.
(h) DISPLACEMENT OF UNITED STATES COMMERCIAL SALES- Subsection (i) of the
Food for Progress Act of 1985 (7 U.S.C. 1736o(i)) is amended by striking `(i)
In entering' and inserting `(i) DISPLACEMENT OF UNITED STATES COMMERCIAL
SALES- In entering'.
(i) MULTICOUNTRY OR MULTIYEAR BASIS- Subsection (j) of the Food for
Progress Act of 1985 (7 U.S.C. 1736o(j)) is amended--
(1) by striking `(j) In carrying out this section, the President may,'
and inserting the following: `(j) MULTICOUNTRY OR MULTIYEAR BASIS-
`(1) IN GENERAL- In carrying out this section, the President,';
(2) by striking `approve' and inserting `is encouraged to
approve';
(3) by striking `multiyear' and inserting `multicountry or multiyear';
and
(4) by adding at the end the following:
`(2) DEADLINE FOR PROGRAM ANNOUNCEMENTS- Before the beginning of any
fiscal year, the President shall, to the maximum extent practicable--
`(A) make all determinations concerning program agreements and
resource requests for programs under this section; and
`(B) announce those determinations.
`(3) REPORT- Not later than December 1 of each fiscal year, the
President 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 eligible commodities, and the
total amount of funds for transportation and administrative costs, approved
to date for the fiscal year under this section.'.
(j) EFFECTIVE AND TERMINATION DATES- Subsection (k) of the Food for
Progress Act of 1985 (7 U.S.C. 1736o(k)) is amended by striking `(k) This
section' and inserting `(k) EFFECTIVE AND TERMINATION DATES- This section'.
(k) ADMINISTRATIVE EXPENSES- Subsection (l) of the Food for Progress Act
of 1985 (7 U.S.C. 1736o(l)) is amended--
(1) by striking `(l)' and inserting `(l) ADMINISTRATIVE EXPENSES-
';
(2) in paragraph (1), by striking `$10,000,000' and inserting
`$15,000,000';
(3) in paragraph (3), by striking `local currencies' and inserting
`proceeds'; and
(4) by adding at the end the following:
`(4) HUMANITARIAN OR DEVELOPMENT PURPOSES- The Secretary may authorize
the use of proceeds to pay the costs incurred by an eligible entity under
this section for--
`(A)(i) programs targeted at hunger and malnutrition; or
`(ii) development programs involving food security;
`(B) transportation, storage, and distribution of eligible commodities
provided under this section; and
`(C) administration, sales, monitoring, and technical
assistance.'.
(l) PRESIDENTIAL APPROVAL- Subsection (m) of the Food for Progress Act of
1985 (7 U.S.C. 1736o(m)) is amended by striking `(m) In carrying' and
inserting `(m) PRESIDENTIAL APPROVAL- In carrying'.
(m) PROGRAM MANAGEMENT- The Food for Progress Act of 1985 is amended by
striking subsection (n) (7 U.S.C. 1736o(n)) and inserting the following:
`(1) IN GENERAL- The President shall ensure, to the maximum extent
practicable, that each eligible entity participating in 1 or more programs
under this section--
`(A) uses eligible commodities made available under this
section--
`(i) in an effective manner;
`(ii) in the areas of greatest need; and
`(iii) in a manner that promotes the purposes of this
section;
`(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 section; and
`(D) monitors and reports on the distribution or sale of eligible
commodities provided under this section using methods that, as determined
by the President, facilitate accurate and timely reporting.
`(A) IN GENERAL- Not later than 270 days after the date of enactment
of this paragraph, the President shall review and, as necessary, make
changes in regulations and internal procedures designed to streamline,
improve, and clarify the application, approval, and implementation
processes pertaining to agreements under this section.
`(B) CONSIDERATIONS- In conducting the review, the President shall
consider--
`(i) revising procedures for submitting proposals;
`(ii) developing criteria for program approval that separately
address the objectives of the program;
`(iii) pre-screening organizations and proposals to ensure that the
minimum qualifications are met;
`(iv) implementing e-government initiatives and otherwise improving
the efficiency of the proposal submission and approval
processes;
`(v) upgrading information management systems;
`(vi) improving commodity and transportation procurement processes;
and
`(vii) ensuring that evaluation and monitoring methods are
sufficient.
`(C) CONSULTATIONS- Not later than 1 year after the date of enactment
of this paragraph, the President shall consult with 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 on changes made in regulations and procedures.
`(3) REPORTS- Each eligible entity that enters into an agreement under
this section shall submit to the President, at such time as the President
may request, a report containing such information as the President may
request relating to the use of eligible commodities and funds furnished to
the eligible entity under this section.'.
SEC. 3107. MCGOVERN-DOLE INTERNATIONAL FOOD FOR EDUCATION AND CHILD
NUTRITION PROGRAM.
(a) DEFINITION OF AGRICULTURAL COMMODITY- In this section, the term
`agricultural commodity' means an agricultural commodity, or a product of an
agricultural commodity, that is produced in the United States.
(b) PROGRAM- Subject to subsection (l), the President may establish a
program, to be known as `McGovern-Dole International Food for Education and
Child Nutrition Program', requiring the procurement of agricultural
commodities and the provision of financial and technical assistance to carry
out--
(1) preschool and school food for education programs in foreign
countries to improve food security, reduce the incidence of hunger, and
improve literacy and primary education, particularly with respect to girls;
and
(2) maternal, infant, and child nutrition programs for pregnant women,
nursing mothers, infants, and children who are 5 years of age or
younger.
(c) ELIGIBLE COMMODITIES AND COST ITEMS- Notwithstanding any other
provision of law--
(1) any agricultural commodity is eligible to be provided under this
section;
(2) as necessary to achieve the purposes of this section, funds
appropriated under this section may be used to pay--
(A)(i) the cost of acquiring agricultural commodities;
(ii) the costs associated with packaging, enrichment, preservation,
and fortification of agricultural commodities;
(iii) the processing, transportation, handling, and other incidental
costs up to the time of the delivery of agricultural commodities 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 agricultural commodities
from United States ports to designated points of entry abroad in the
case--
(I) of landlocked countries;
(II) of ports that cannot be used effectively because of natural or
other disturbances;
(III) of the unavailability of carriers to a specific country;
or
(IV) of substantial savings in costs or time that may be effected by
the utilization of points of entry other than ports; and
(vi) the charges for general average contributions arising out of the
ocean transport of agricultural commodities transferred pursuant
thereto;
(B) all or any part of the internal transportation, storage, and
handling costs incurred in moving the eligible commodity, if the President
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 goals of 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, convened in 2000;
(C) the costs of activities conducted in the recipient countries by a
nonprofit voluntary organization, cooperative, or intergovernmental agency
or organization that would enhance the effectiveness of the activities
implemented by such entities under this section; and
(D) the costs of meeting the allowable administrative expenses of
private voluntary organizations, cooperatives, or intergovernmental
organizations that are implementing activities under this
section.
(d) GENERAL AUTHORITIES- The President shall designate 1 or more Federal
agencies to--
(1) implement the program established under this section;
(2) ensure that the program established under this section is consistent
with the foreign policy and development assistance objectives of the United
States; and
(3) consider, in determining whether a country should receive assistance
under this section, whether the government of the country is taking concrete
steps to improve the preschool and school systems in the country.
(e) ELIGIBLE ENTITIES- Assistance may be provided under this section to
private voluntary organizations, cooperatives, intergovernmental
organizations, governments of developing countries and their agencies, and
other organizations.
(1) IN GENERAL- In carrying out subsection (b), the President shall
ensure that procedures are established that--
(A) provide for the submission of proposals by eligible entities, each
of which may include 1 or more recipient countries, for commodities and
other assistance under this section;
(B) provide for eligible commodities and assistance on a multiyear
basis;
(C) ensure that eligible entities demonstrate the organizational
capacity and the ability to develop, implement, monitor, report on, and
provide accountability for activities conducted under this
section;
(D) provide for the expedited development, review, and approval of
proposals submitted in accordance with this section;
(E) ensure monitoring and reporting by eligible entities on the use of
commodities and other assistance provided under this section; and
(F) allow for the sale or barter of commodities by eligible entities
to acquire funds to implement activities that improve the food security of
women and children or otherwise enhance the effectiveness of programs and
activities authorized under this section.
(2) PRIORITIES FOR PROGRAM FUNDING- In carrying out paragraph (1) with
respect to criteria for determining the use of commodities and other
assistance provided for programs and activities authorized under this
section, the implementing agency may consider the ability of eligible
entities to--
(A) identify and assess the needs of beneficiaries, especially
malnourished or undernourished mothers and their children who are 5 years
of age or younger, and school-age children who are malnourished,
undernourished, or do not regularly attend school;
(B)(i) in the case of preschool and school-age children, target
low-income areas where children's enrollment and attendance in school is
low or girls' enrollment and participation in preschool or school is low,
and incorporate developmental objectives for improving literacy and
primary education, particularly with respect to girls; and
(ii) in the case of programs to benefit mothers and children who are 5
years of age or younger, coordinate supplementary feeding and nutrition
programs with existing or newly-established maternal, infant, and children
programs that provide health-needs interventions, including maternal,
prenatal, and postnatal and newborn care;
(C) involve indigenous institutions as well as local communities and
governments in the development and implementation of the programs and
activities to foster local capacity building and leadership; and
(D) carry out multiyear programs that foster local self-sufficiency
and ensure the longevity of programs in the recipient country .
(g) USE OF FOOD AND NUTRITION SERVICE- The Food and Nutrition Service of
the Department of Agriculture may provide technical advice on the
establishment of programs under subsection (b)(1) and on implementation of the
programs in the field in recipient countries.
(h) MULTILATERAL INVOLVEMENT-
(1) IN GENERAL- The President is urged to engage existing international
food aid coordinating mechanisms to ensure multilateral commitments to, and
participation in, programs similar to programs supported under this
section.
(2) REPORTS- The President shall annually submit to the Committee on
International Relations and the Committee on Agriculture of the House of
Representatives and the Committee on Agriculture, Nutrition, and Forestry of
the Senate a report on the commitments and activities of governments,
including the United States government, in the global effort to reduce child
hunger and increase school attendance.
(i) PRIVATE SECTOR INVOLVEMENT- The President is urged to encourage the
support and active involvement of the private sector, foundations, and other
individuals and organizations in programs assisted under this section.
(j) GRADUATION- An agreement with an eligible organization under this
section shall include provisions--
(A) 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 a program under
this section terminates; and
(B) estimate the period of time required until the recipient country
or eligible organization is able to provide sufficient assistance without
additional assistance under this section; or
(2) to provide other long-term benefits to targeted populations of the
recipient country.
(k) REQUIREMENT TO SAFEGUARD LOCAL PRODUCTION AND USUAL MARKETING- The
requirement of section 403(a) of the Agricultural Trade Development and
Assistance Act of 1954 (7 U.S.C. 1733(a)) applies with respect to the
availability of commodities under this section.
(1) IN GENERAL- Of the funds of the Commodity Credit Corporation, the
President shall use $100,000,000 for fiscal year 2003 to carry out this
section.
(2) AUTHORIZATION OF APPROPRIATIONS- There are authorized to be
appropriated such sums as are necessary to carry out this section for each
of fiscal years 2004 through 2007.
(3) ADMINISTRATIVE EXPENSES- Funds made available to carry out this
section may be used to pay the administrative expenses of any Federal agency
implementing or assisting in the implementation of this section.
Subtitle C--Miscellaneous
SEC. 3201. 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) by striking `Foreign currencies' and inserting `Proceeds';
and
(B) by striking `foreign currency'; and
(A) by striking `Foreign currency proceeds' and inserting
`Proceeds';
(B) by striking `country of origin' the second place it appears and
all that follows through `as necessary to expedite' and inserting `country
of origin as necessary to expedite';
(C) by striking `; or' and inserting a period; and
(D) by striking subclause (II).
(b) IMPLEMENTATION OF AGREEMENTS- Section 416(b) of the Agricultural Act
of 1949 (7 U.S.C. 1431(b)) (as amended by section 3009(b)) is amended--
(1) in paragraph (8), by striking `(8)(A)' and all that follows through
`(B) The Secretary' and inserting the following:
`(8) ADMINISTRATIVE PROVISIONS-
`(A) EXPEDITED PROCEDURES- To the maximum extent practicable,
expedited procedures shall be used in the implementation of this
subsection.
`(B) ESTIMATE OF COMMODITIES- The Secretary shall publish in the
Federal Register, not later than October 31 of each fiscal year, an
estimate of the types and quantities of commodities and products that will
be available under this section for the fiscal year.
`(C) FINALIZATION OF AGREEMENTS- The Secretary is encouraged to
finalize program agreements under this section not later than December 31
of each fiscal year.
`(D) REGULATIONS- The Secretary'; and
(2) by adding at the end the following:
`(A) IN GENERAL- Not later than 270 days after the date of enactment
of this subparagraph, the Secretary shall review and, as necessary, make
changes in regulations and internal procedures designed to streamline,
improve, and clarify the application, approval, and implementation
processes pertaining to agreements under this section.
`(B) CONSIDERATIONS- In conducting the review, the Secretary shall
consider--
`(i) revising procedures for submitting proposals;
`(ii) developing criteria for program approval that separately
address the objectives of the program;
`(iii) pre-screening organizations and proposals to ensure that the
minimum qualifications are met;
`(iv) implementing e-government initiatives and otherwise improving
the efficiency of the proposal submission and approval
processes;
`(v) upgrading information management systems;
`(vi) improving commodity and transportation procurement processes;
and
`(vii) ensuring that evaluation and monitoring methods are
sufficient.
`(C) CONSULTATIONS- Not later than 1 year after the date of enactment
of this subparagraph, the Secretary shall consult with 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 on changes made in regulations and procedures under this
paragraph.'.
SEC. 3202. 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 `2007'.
SEC. 3203. EMERGING MARKETS.
Section 1542 of the Food, Agriculture, Conservation, and Trade Act of 1990
(7 U.S.C. 5622 note) is amended in subsections (a) and (d)(1)(A)(i) by
striking `2002' and inserting `2007'.
SEC. 3204. BIOTECHNOLOGY AND AGRICULTURAL TRADE PROGRAM.
The Food, Agriculture, Conservation, and Trade Act of 1990 is amended by
inserting after section 1543 (7 U.S.C. 3293) the following:
`SEC. 1543A. BIOTECHNOLOGY AND AGRICULTURAL TRADE PROGRAM.
`(a) ESTABLISHMENT- There is established in the Department the
biotechnology and agricultural trade program.
`(b) PURPOSE- The purpose of the program shall be to remove, resolve, or
mitigate significant regulatory nontariff barriers to the export of United
States agricultural commodities (as defined in section 102 of the Agricultural
Trade Act of 1978 (7 U.S.C. 5602)) into foreign markets through public and
private sector projects funded by grants that address--
`(1) quick response intervention regarding nontariff barriers to United
States exports involving--
`(A) United States agricultural commodities produced through
biotechnology;
`(D) other sanitary or phytosanitary concerns; or
`(2) developing protocols as part of bilateral negotiations with other
countries on issues such as animal health, grain quality, and genetically
modified commodities.
`(c) ELIGIBLE PROGRAMS- Depending on need, as determined by the Secretary,
activities authorized under this section may be carried out through--
`(2) the emerging markets program under section 1542; or
`(3) the Cochran Fellowship Program under section 1543.
`(d) FUNDING- There is authorized to be appropriated $6,000,000 for each
of fiscal years 2002 through 2007.'.
SEC. 3205. TECHNICAL ASSISTANCE FOR SPECIALTY CROPS.
(a) ESTABLISHMENT- The Secretary of Agriculture shall establish an export
assistance program (referred to in this section as the `program') to address
unique barriers that prohibit or threaten the export of United States
specialty crops.
(b) PURPOSE- The program shall provide direct assistance through public
and private sector projects and technical assistance to remove, resolve, or
mitigate sanitary and phytosanitary and related barriers to trade.
(c) PRIORITY- The program shall address time sensitive and strategic
market access projects based on--
(1) trade effect on market retention, market access, and market
expansion; and
(d) FUNDING- For each of fiscal years 2002 through 2007, the Secretary
shall make available $2,000,000 of the funds of, or an equal value of
commodities owned by, the Commodity Credit Corporation.
SEC. 3206. GLOBAL MARKET STRATEGY.
(a) IN GENERAL- Not later than 180 days after the date of enactment of
this Act, and biennially thereafter, the Secretary of Agriculture shall
consult with 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 on the formulation and implementation of
a global market strategy for the Department of Agriculture that, to the
maximum extent practicable--
(1) identifies opportunities for the growth of agricultural exports to
overseas markets;
(2) ensures that the resources, programs, and policies of the Department
are coordinated with those of other agencies; and
(3) remove barriers to agricultural trade in overseas markets.
(b) REVIEW- The consultations under subsection (a) shall include a review
of--
(1) the strategic goals of the Department; and
(2) the progress of the Department in implementing the strategic goals
through the global market strategy.
SEC. 3207. REPORT ON USE OF PERISHABLE COMMODITIES AND LIVE ANIMALS.
Not later than 120 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 on international food aid programs of the
United States that evaluates--
(1) the implications of storage and transportation capacity and funding
for the use of perishable agricultural commodities and semiperishable
agricultural commodities; and
(2) the feasibility of the transport of lambs and other live animals
under the program.
SEC. 3208. STUDY ON FEE FOR SERVICES.
(a) IN GENERAL- Not later than 1 year after the date of enactment of this
Act, the Secretary of Agriculture 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 feasibility of instituting a program under which
the Secretary would charge and retain a fee to cover the costs incurred by the
Department of Agriculture, acting through the Foreign Agricultural Service or
any successor agency, in providing persons with commercial services provided
outside the United States.
(b) PURPOSE OF PROGRAM- The purpose of a program described in subsection
(a) would be to supplement and not replace any services currently offered
overseas by the Foreign Agricultural Service.
(c) MARKET DEVELOPMENT STRATEGY- A program under subsection (b) would be
part of an overall market development strategy for a particular country or
region.
(d) PILOT PROGRAM- A program under subsection (a) would be established on
a pilot basis to ensure that the program does not disadvantage small- and
medium-sized companies, including companies that have never engaged in
exporting.
SEC. 3209. SENSE OF CONGRESS 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 CONGRESS- It is the sense of Congress 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.
SEC. 3210. SENSE OF THE SENATE CONCERNING AGRICULTURAL TRADE.
(a) AGRICULTURE TRADE NEGOTIATING OBJECTIVES- It is the sense of the
Senate 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 the Senate
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 the
Senate 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.
TITLE IV--NUTRITION PROGRAMS
SEC. 4001. SHORT TITLE.
This title may be cited as the `Food Stamp Reauthorization Act of
2002'.
Subtitle A--Food Stamp Program
SEC. 4101. 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-
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 any 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. 651 et seq.) concerning payments made in prior
months in lieu of obtaining current information from the households.'.
SEC. 4102. 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. 301 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. 4103. STANDARD DEDUCTION.
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:
`(i) DEDUCTION- The Secretary shall allow a standard deduction for
each household in the 48 contiguous States and the District of Columbia,
Alaska, Hawaii, and the Virgin Islands of the United States in an amount
that is--
`(I) equal to 8.31 percent of the income standard of eligibility
established under subsection (c)(1); but
`(II) not more than 8.31 percent of the income standard of
eligibility established under subsection (c)(1) for a household of 6
members.
`(ii) MINIMUM AMOUNT- Notwithstanding clause (i), the standard
deduction for each household in the 48 contiguous States and the
District of Columbia, Alaska, Hawaii, and the Virgin Islands of the
United States shall be not less than $134, $229, $189, and $118,
respectively.
`(i) IN GENERAL- The Secretary shall allow a standard deduction for
each household in Guam in an amount that is--
`(I) equal to 8.31 percent 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 more than 8.31 percent of twice the income standard of
eligibility established under subsection (c)(1) for the 48 contiguous
States and the District of Columbia for a household of 6
members.
`(ii) MINIMUM AMOUNT- Notwithstanding clause (i), the standard
deduction for each household in Guam shall be not less than
$269.'.
SEC. 4104. SIMPLIFIED UTILITY ALLOWANCE.
Section 5(e)(7)(C)(iii) of the Food Stamp Act of 1977 (7 U.S.C.
2014(e)(7)(C)(iii)) 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. 4105. 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 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. 4106. SIMPLIFIED DETERMINATION OF DEDUCTIONS.
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 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
recertification 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. 4107. SIMPLIFIED DEFINITION OF RESOURCES.
Section 5(g) of the Food Stamp Act of 1977 (7 U.S.C. 2014(g)) is
amended--
(1) in paragraph (1), by striking `a member who is 60 years of age or
older' and inserting `an elderly or disabled member'; and
(2) 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), 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- Except to the extent that any of the types of
resources specified in clauses (i) through (iv) are excluded under another
paragraph of this subsection, 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.'.
SEC. 4108. ALTERNATIVE ISSUANCE SYSTEMS IN DISASTERS.
(a) IN GENERAL- 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'.
(b) EFFECTIVE DATE- The amendments made by this section take effect on the
date of enactment of this Act.
SEC. 4109. 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
income standard of eligibility established under section
5(c)(2).'.
SEC. 4110. 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. 4111. REPORT ON ELECTRONIC BENEFIT TRANSFER SYSTEMS.
(a) DEFINITION OF EBT SYSTEM- In this section, the term `EBT system' means
an electronic benefit transfer system used in issuance of benefits under the
food stamp program under the Food Stamp Act of 1977 (7 U.S.C. 2011 et
seq.).
(b) REPORT- Not later than October 1, 2003, 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--
(1) describes the status of use by each State agency of EBT
systems;
(2) specifies the number of vendors that have entered into a contract
for an EBT system with a State agency;
(3)(A) specifies the number of State agencies that have entered into an
EBT-system contract with multiple EBT-system vendors; and
(B) describes, for each State agency described in subparagraph (A), how
responsibilities are divided among the various vendors;
(4) with respect to any State in which an EBT system is not operational
throughout the State as of October 1, 2002--
(A) provides an explanation of the reasons why an EBT system is not
operational throughout the State;
(B) describes how the reasons are being addressed; and
(C) specifies the expected date of operation of an EBT system
throughout the State;
(5) provides a description of--
(A) the issues faced by any State agency that has awarded a second
EBT-system contract in the 2-year period preceding the date of the report;
and
(B) the steps that the State agency has taken to address those
issues;
(6) provides a description of--
(A) the issues faced by any State agency that will award a second
EBT-system contract within the 2-year period beginning on the date of the
report; and
(B) strategies that the State agency is considering to address those
issues;
(7) describes initiatives being considered or taken by the Department of
Agriculture, food retailers, EBT-system vendors, and client advocates to
address any outstanding issues with respect to EBT systems; and
(8) examines areas of potential advances in electronic benefit delivery
in the 5- to 10-year period beginning on the date of the report,
including--
(A) access to EBT systems at farmers' markets;
(B) increased use of transaction data from EBT systems to identify and
prosecute fraud; and
(C) fostering of increased competition among EBT-system vendors to
ensure cost containment and optimal service.
SEC. 4112. 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) ALTERNATIVE PROCEDURES FOR RESIDENTS OF CERTAIN GROUP FACILITIES-
`(i) IN GENERAL- Subject to clause (ii), at the option of the State
agency, allotments for residents of any facility described in
subparagraph (B), (C), (D), or (E) of section 3(i)(5) (referred to in
this subsection as a `covered facility') may be determined and issued
under this paragraph in lieu of subsection (a).
`(ii) LIMITATION- Unless the Secretary authorizes implementation of
this paragraph in all States under paragraph (3), clause (i) shall apply
only to residents of covered facilities participating in a pilot project
under paragraph (2).
`(B) AMOUNT OF ALLOTMENT- The allotment for each eligible resident
described in subparagraph (A) shall be calculated in accordance with
standardized procedures established by the Secretary that take into
account the allotments typically received by residents of covered
facilities.
`(C) ISSUANCE OF ALLOTMENT-
`(i) IN GENERAL- The State agency shall issue an allotment
determined under this paragraph to a covered facility as the authorized
representative of the residents of the covered facility.
`(ii) ADJUSTMENT- The Secretary shall establish procedures to ensure
that a covered facility 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 covered facility.
`(D) DEPARTURES OF RESIDENTS OF COVERED FACILITIES-
`(i) NOTIFICATION- Any covered facility that receives an allotment
for a resident under this paragraph 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--
`(aa) is eligible for continued benefits under the food stamp
program; and
`(bb) should contact the State agency concerning continuation of the
benefits.
`(ii) ISSUANCE TO DEPARTED RESIDENTS- On receiving a notification
under clause (i)(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 paragraph
unless the departed resident reapplies to participate in the food
stamp program.
`(iii) STATE OPTION- The State agency may elect not to issue an
allotment under clause (ii)(I) if the State agency lacks sufficient
information on the location of the departed resident to provide the
allotment.
`(iv) 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
paragraph.
`(A) IN GENERAL- Before the Secretary authorizes implementation of
paragraph (1) in all States, the Secretary shall carry out, at the request
of 1 or more State agencies and in 1 or more areas of the United States,
such number of pilot projects as the Secretary determines to be sufficient
to test the feasibility of determining and issuing allotments to residents
of covered facilities under paragraph (1) in lieu of subsection
(a).
`(B) PROJECT PLAN- To be eligible to participate in a pilot project
under subparagraph (A), a State agency shall submit to the Secretary for
approval a project plan that includes--
`(i) a specification of the covered facilities in the State that
will participate in the pilot project;
`(ii) a schedule for reports to be submitted to the Secretary on the
pilot project;
`(iii) procedures for standardizing allotment amounts that takes
into account the allotments typically received by residents of covered
facilities; and
`(iv) a commitment to carry out the pilot project in compliance with
the requirements of this subsection other than paragraph
(1)(B).
`(3) AUTHORIZATION OF IMPLEMENTATION IN ALL STATES-
`(A) IN GENERAL- The Secretary shall--
`(i) determine whether to authorize implementation of paragraph (1)
in all States; and
`(ii) notify the Committee on Agriculture of the House of
Representatives and the Committee on Agriculture, Nutrition, and
Forestry of the Senate of the determination.
`(B) DETERMINATION NOT TO AUTHORIZE IMPLEMENTATION IN ALL
STATES-
`(i) IN GENERAL- If the Secretary makes a finding described in
clause (ii), the Secretary--
`(I) shall not authorize implementation of paragraph (1) in all
States; and
`(II) shall terminate all pilot projects under paragraph (2)
within a reasonable period of time (as determined by the
Secretary).
`(ii) FINDING- The finding referred to in clause (i) is
that--
`(I) an insufficient number of project plans that the Secretary
determines to be eligible for approval are submitted by State agencies
under paragraph (2)(B); or
`(II)(aa) a sufficient number of pilot projects have been carried
out under paragraph (2)(A); and
`(bb) authorization of implementation of paragraph (1) in all
States is not in the best interest of the food stamp
program.'.
(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. 4113. REDEMPTION OF BENEFITS THROUGH GROUP LIVING ARRANGEMENTS.
(a) IN GENERAL- 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.'.
(b) EFFECTIVE DATE- The amendment made by this section takes effect on the
date of enactment of this Act.
SEC. 4114. AVAILABILITY OF FOOD STAMP PROGRAM APPLICATIONS ON THE
INTERNET.
(a) IN GENERAL- 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;'.
(b) EFFECTIVE DATE- The amendments made by this section take effect 18
months after the date of enactment of this Act.
SEC. 4115. 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
receive transitional food stamp benefits for a period of not more than 5
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 the change in
household income as a result of--
`(A) the termination of cash assistance; and
`(B) at the option of the State agency, information from another
program in which the household participates.
`(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 recertification of
eligibility; and
`(B) initiate a new certification period for the household without
regard to whether the preceding certification 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.
`(6) APPLICATIONS FOR RECERTIFICATION-
`(A) IN GENERAL- A household receiving transitional benefits under
this subsection may apply for recertification at any time during the
transitional benefits period under paragraph (2).
`(B) DETERMINATION OF ALLOTMENT- If a household applies for
recertification under subparagraph (A), the allotment of the household for
all subsequent months shall be determined without regard to this
subsection.'.
(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
subsection 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. 4116. GRANTS FOR SIMPLE APPLICATION AND ELIGIBILITY DETERMINATION
SYSTEMS AND IMPROVED ACCESS TO BENEFITS.
(a) IN GENERAL- Section 11 of the Food Stamp Act of 1977 (7 U.S.C. 2020)
(as amended by section 4115(a)) is amended by adding at the end the
following:
`(t) GRANTS FOR SIMPLE APPLICATION AND ELIGIBILITY DETERMINATION SYSTEMS
AND IMPROVED ACCESS TO BENEFITS-
`(1) IN GENERAL- For each of fiscal years 2003 through 2007, the
Secretary shall use not more than $5,000,000 of funds made available under
section 18(a)(1) to make grants to pay 100 percent of the costs of eligible
entities approved by the Secretary to carry out projects to develop and
implement--
`(A) simple food stamp application and eligibility determination
systems; or
`(B) measures to improve access to food stamp benefits by eligible
households.
`(2) TYPES OF PROJECTS- A project under paragraph (1) may consist
of--
`(A) coordinating application and eligibility determination processes,
including verification practices, under the food stamp program and other
Federal, State, and local assistance programs;
`(B) establishing methods for applying for benefits and determining
eligibility that--
`(i) more extensively use--
`(I) communications by telephone; and
`(II) electronic alternatives such as the Internet;
or
`(ii) otherwise improve the administrative infrastructure used in
processing applications and determining eligibility;
`(C) developing procedures, training materials, and other resources
aimed at reducing barriers to participation and reaching eligible
households;
`(D) improving methods for informing and enrolling eligible
households; or
`(E) carrying out such other activities as the Secretary determines to
be appropriate.
`(3) LIMITATION- A grant under this subsection shall not be made for the
ongoing cost of carrying out any project.
`(4) ELIGIBLE ENTITIES- To be eligible to receive a grant under this
subsection, an entity shall be--
`(A) a State agency administering the food stamp program;
`(B) a State or local government;
`(C) an agency providing health or welfare services;
`(D) a public health or educational entity; or
`(E) a private nonprofit entity such as a community-based
organization, food bank, or other emergency feeding organization.
`(5) SELECTION OF ELIGIBLE ENTITIES- The Secretary--
`(A) shall develop criteria for the selection of eligible entities to
receive grants under this subsection; and
`(B) may give preference to any eligible entity that consists of a
partnership between a governmental entity and a nongovernmental
entity.'.
(b) CONFORMING AMENDMENTS- Section 17 of the Food Stamp Act of 1977 (7
U.S.C. 2026) is amended--
(1) by striking subsection (i); and
(2) by redesignating subsections (j) and (k) as subsections (i) and (j),
respectively.
SEC. 4117. DELIVERY TO RETAILERS OF NOTICES OF ADVERSE ACTION.
(a) IN GENERAL- 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.'.
(b) EFFECTIVE DATE- The amendment made by this section takes effect on the
date of enactment of this Act.
SEC. 4118. 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--
(1) by striking `(c)(1) The program' and all that follows through the
end of paragraph (1) and inserting the following:
`(c) QUALITY CONTROL SYSTEM-
`(A) SYSTEM- In carrying out the food stamp program, the Secretary
shall carry out a system that enhances payment accuracy and improves
administration by establishing fiscal incentives that require State
agencies with high payment error rates to share in the cost of payment
error.
`(B) ADJUSTMENT OF FEDERAL SHARE OF ADMINISTRATIVE COSTS FOR FISCAL
YEARS BEFORE FISCAL YEAR 2003-
`(i) IN GENERAL- Subject to clause (ii), with respect to any fiscal
year before fiscal year 2003, the Secretary shall adjust a State
agency's federally funded share of administrative costs under subsection
(a), other than the costs already shared in excess of 50 percent under
the proviso in the first sentence of subsection (a) or under subsection
(g), by increasing that share of all such administrative costs by 1
percentage point to a maximum of 60 percent of all such administrative
costs for each full 1/10 of a percentage point by which the payment
error rate is less than 6 percent.
`(ii) LIMITATION- Only States with a rate of invalid decisions in
denying eligibility that is less than a nationwide percentage that the
Secretary determines to be reasonable shall be entitled to the
adjustment under clause (i).
`(C) ESTABLISHMENT OF LIABILITY AMOUNT FOR FISCAL YEAR 2003 AND
THEREAFTER- With respect to fiscal year 2004 and any fiscal year
thereafter for which the Secretary determines that, for the second or
subsequent consecutive fiscal year, a 95 percent statistical probability
exists that the payment error rate of a State agency exceeds 105 percent
of the national performance measure for payment error rates announced
under paragraph (6), the Secretary shall establish an amount for which the
State agency may be liable (referred to in this paragraph as the
`liability amount') that is equal to the product obtained by
multiplying--
`(i) the value of all allotments issued by the State agency in the
fiscal year;
`(ii) the difference between--
`(I) the payment error rate of the State agency;
and
`(D) AUTHORITY OF SECRETARY WITH RESPECT TO LIABILITY AMOUNT- With
respect to the liability amount established for a State agency under
subparagraph (C) for any fiscal year, the Secretary shall--
`(i)(I) waive the responsibility of the State agency to pay all or
any portion of the liability amount established for the fiscal year
(referred to in this paragraph as the `waiver amount');
`(II) require that a portion, not to exceed 50 percent, of the
liability amount established for the fiscal year be used by the State
agency for new investment, approved by the Secretary, to improve
administration by the State agency of the food stamp program (referred
to in this paragraph as the `new investment amount'), which new
investment amount shall not be matched by Federal funds;
`(III) designate a portion, not to exceed 50 percent, of the amount
established for the fiscal year for payment to the Secretary in
accordance with subparagraph (E) (referred to in this paragraph as the
`at-risk amount'); or
`(IV) take any combination of the actions described in subclauses
(I) through (III); or
`(ii) make the determinations described in clause (i) and enter into
a settlement with the State agency, only with respect to any waiver
amount or new investment amount, before the end of the fiscal year in
which the liability amount is determined under subparagraph
(C).
`(E) PAYMENT OF AT-RISK AMOUNT FOR CERTAIN STATES-
`(i) IN GENERAL- A State agency shall pay to the Secretary the
at-risk amount designated under subparagraph (D)(i)(III) for any fiscal
year in accordance with clause (ii), if, with respect to the immediately
following fiscal year, a liability amount has been established for the
State agency under subparagraph (C).
`(ii) METHOD OF PAYMENT OF AT-RISK AMOUNT-
`(I) REMISSION TO THE SECRETARY- In the case of a State agency
required to pay an at-risk amount under clause (i), as soon as
practicable after completion of all administrative and judicial
reviews with respect to that requirement to pay, the chief executive
officer of the State shall remit to the Secretary the at-risk amount
required to be paid.
`(II) ALTERNATIVE METHOD OF COLLECTION-
`(aa) IN GENERAL- If the chief executive officer of the State fails
to make the payment under subclause (I) within a reasonable period of time
determined by the Secretary, the Secretary may reduce any amount due to the
State agency under any other provision of this section by the amount required to
be paid under clause (i).
`(bb) ACCRUAL OF INTEREST- During any period of time determined by
the Secretary under item (aa), interest on the payment under subclause (I) shall
not accrue under section 13(a)(2).
`(F) USE OF PORTION OF LIABILITY AMOUNT FOR NEW INVESTMENT-
`(i) REDUCTION OF OTHER AMOUNTS DUE TO STATE AGENCY- In the case of
a State agency that fails to comply with a requirement for new
investment under subparagraph (D)(i)(II) or clause (iii)(I), the
Secretary may reduce any amount due to the State agency under any other
provision of this section by the portion of the liability amount that
has not been used in accordance with that requirement.
`(ii) EFFECT OF STATE AGENCY'S WHOLLY PREVAILING ON APPEAL- If a
State agency begins required new investment under subparagraph
(D)(i)(II), the State agency appeals the liability amount of the State
agency, and the determination by the Secretary of the liability amount
is reduced to $0 on administrative or judicial review, the Secretary
shall pay to the State agency an amount equal to 50 percent of the new
investment amount that was included in the liability amount subject to
the appeal.
`(iii) EFFECT OF SECRETARY'S WHOLLY PREVAILING ON APPEAL- If a State
agency does not begin required new investment under subparagraph
(D)(i)(II), the State agency appeals the liability amount of the State
agency, and the determination by the Secretary of the liability amount
is wholly upheld on administrative or judicial review, the Secretary
shall--
`(I) require all or any portion of the new investment amount to be
used by the State agency for new investment, approved by the
Secretary, to improve administration by the State agency of the food
stamp program, which amount shall not be matched by Federal funds;
and
`(II) require payment of any remaining portion of the new
investment amount in accordance with subparagraph
(E)(ii).
`(iv) EFFECT OF NEITHER PARTY'S WHOLLY PREVAILING ON APPEAL- The
Secretary shall promulgate regulations regarding obligations of the
Secretary and the State agency in a case in which the State agency
appeals the liability amount of the State agency and neither the
Secretary nor the State agency wholly prevails.
`(G) CORRECTIVE ACTION PLANS- The Secretary shall foster management
improvements by the States by requiring State agencies, other than State
agencies with payment error rates of less than 6 percent, to develop and
implement corrective action plans to reduce payment errors.';
(2) 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, liability amount or new investment amount
under paragraph (1), or performance under the performance measures under
subsection (d).';
(A) 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 State agency's payment error rate,
liability amount or new investment amount under paragraph (1), or
performance under the performance measures under subsection (d).'; and
(B) in the last sentence, by striking `paragraph (1)(C)' and inserting
`paragraph (1)';
(A) by striking `(6) At' and inserting the following:
`(6) NATIONAL PERFORMANCE MEASURE FOR PAYMENT ERROR RATES-
(B) in subparagraph (A) (as designated by subparagraph (A)), by
striking `and incentive payments or claims pursuant to paragraphs (1)(A)
and (1)(C)';
(C) in the first and third sentences, by striking `paragraph (5)' each
place it appears and inserting `paragraph (8)';
(D) by striking `Where a State' and inserting the following:
`(B) USE OF ALTERNATIVE MEASURE OF STATE ERROR- Where a
State';
(E) by striking `The announced' and inserting the following:
`(C) USE OF NATIONAL PERFORMANCE MEASURE- The announced';
(F) in subparagraph (C) (as designated by subparagraph (E)), by
striking `the State share of the cost of payment error under paragraph
(1)(C)' and inserting `the liability amount of a State under paragraph
(1)(C)'; and
(G) by adding at the end the following:
`(D) NO ADMINISTRATIVE OR JUDICIAL REVIEW- The national performance
measure announced under this paragraph shall not be subject to
administrative or judicial review.';
(A) by striking `(7) If the Secretary asserts a financial claim
against' and inserting the following:
`(7) ADMINISTRATIVE AND JUDICIAL REVIEW-
`(A) IN GENERAL- Except as provided in subparagraphs (B) and (C), if
the Secretary asserts a financial claim against or establishes a liability
amount with respect to';
(B) in subparagraph (A) (as designated by subparagraph (A)), by
striking `paragraph (1)(C)' and inserting `paragraph (1)'; and
(C) by adding at the end the following:
`(B) DETERMINATION OF PAYMENT ERROR RATE- With respect to any fiscal
year, a determination of the payment error rate of a State agency or a
determination whether the payment error rate exceeds 105 percent of the
national performance measure for payment error rates shall be subject to
administrative or judicial review only if the Secretary establishes a
liability amount with respect to the fiscal year under paragraph
(1)(C).
`(C) AUTHORITY OF SECRETARY WITH RESPECT TO LIABILITY AMOUNT- An
action by the Secretary under subparagraph (D) or (F)(iii) of paragraph
(1) shall not be subject to administrative or judicial review.';
and
(A) in subparagraph (A), by striking `paragraph (1)(C)' and inserting
`paragraph (1)';
(B) in subparagraph (C)--
(i) in clause (i), by striking `payment claimed against State
agencies; and' and inserting `payment claimed against State agencies or
liability amount established with respect to State
agencies;';
(ii) in clause (ii), by striking `claims.' and inserting `claims or
liability amounts; and'; and
(iii) by adding at the end the following:
`(iii) provide a copy of the document providing notification under
clause (ii) to the chief executive officer and the legislature of the
State.'; and
(C) in subparagraphs (D) and (H), by inserting `or liability amount'
after `claim' each place it appears.
(b) AUTHORITY TO SETTLE CLAIMS CONCERNING AT-RISK AMOUNTS- Section 13(a)
of the Food Stamp Act of 1977 (7 U.S.C. 2022(a)) is amended--
(1) by striking `(a)(1) The' and inserting the following:
`(a) GENERAL AUTHORITY OF THE SECRETARY-
`(1) DETERMINATION OF CLAIMS- Except in the case of an at-risk amount
required under section 16(c)(1)(D)(i)(III), the';
(2) by striking the fourth sentence;
(3) by striking `To the extent' and inserting the following:
`(2) CLAIMS ESTABLISHED UNDER QUALITY CONTROL SYSTEM- To the
extent';
(4) in paragraph (2) (as designated by paragraph (3)), by striking
`section 16(c)(1)(C)' and inserting `section 16(c)(1)';
(5) by striking `Any interest' and inserting the following:
`(3) COMPUTATION OF INTEREST- Any interest'; and
(6) by striking `(2) Each adult' and inserting the following:
`(4) JOINT AND SEVERAL LIABILITY OF HOUSEHOLD MEMBERS- Each
adult'.
(c) CREDITING OF PAYMENTS TO FOOD STAMP APPROPRIATIONS ACCOUNT- Section
18(e) of the Food Stamp Act of 1977 (7 U.S.C. 2027(e)) is amended in the first
sentence--
(1) by striking `11(g) and (h), and' and inserting `subsections (g) and
(h) of section 11,'; and
(2) by inserting `and section 16(c)(1),' after `section 13,'.
(d) CONFORMING AMENDMENTS- Section 22(h) of the Food Stamp Act of 1977 (7
U.S.C. 2031(h)) is amended--
(1) in the second sentence, by striking `section 16(c)(1)(C)' and
inserting `section 16(c)(1)'; and
(2) by striking the third sentence.
(e) APPLICABILITY- The amendments made by this section shall not apply
with respect to any sanction, appeal, new investment agreement, or other
action by the Secretary of Agriculture or a State agency that is based on a
payment error rate calculated for any fiscal year before fiscal year 2003.
SEC. 4119. 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. 4120. BONUSES FOR STATES THAT DEMONSTRATE HIGH OR MOST IMPROVED
PERFORMANCE.
(a) IN GENERAL- Section 16 of the Food Stamp Act of 1977 (7 U.S.C. 2025)
is amended by striking subsection (d) and inserting the following:
`(d) BONUSES FOR STATES THAT DEMONSTRATE HIGH OR MOST IMPROVED
PERFORMANCE-
`(1) FISCAL YEARS 2003 AND 2004-
`(A) GUIDANCE- With respect to fiscal years 2003 and 2004, the
Secretary shall establish, in guidance issued to State agencies not later
than October 1, 2002--
`(i) performance criteria relating to--
`(I) actions taken to correct errors, reduce rates of error, and
improve eligibility determinations; and
`(II) other indicators of effective administration determined by
the Secretary; and
`(ii) standards for high and most improved performance to be used in
awarding performance bonus payments under subparagraph
(B)(ii).
`(B) PERFORMANCE BONUS PAYMENTS- With respect to each of fiscal years
2003 and 2004, the Secretary shall--
`(i) measure the performance of each State agency with respect to
the criteria established under subparagraph (A)(i); and
`(ii) subject to paragraph (3), award performance bonus payments in
the following fiscal year, in a total amount of $48,000,000 for each
fiscal year, to State agencies that meet standards for high or most
improved performance established by the Secretary under subparagraph
(A)(ii).
`(2) FISCAL YEARS 2005 AND THEREAFTER-
`(A) REGULATIONS- With respect to fiscal year 2005 and each fiscal
year thereafter, the Secretary shall--
`(i) establish, by regulation, performance criteria relating
to--
`(I) actions taken to correct errors, reduce rates of error, and
improve eligibility determinations; and
`(II) other indicators of effective administration determined by
the Secretary;
`(ii) establish, by regulation, standards for high and most improved
performance to be used in awarding performance bonus payments under
subparagraph (B)(ii); and
`(iii) before issuing proposed regulations to carry out clauses (i)
and (ii), solicit ideas for performance criteria and standards for high
and most improved performance from State agencies and organizations that
represent State interests.
`(B) PERFORMANCE BONUS PAYMENTS- With respect to fiscal year 2005 and
each fiscal year thereafter, the Secretary shall--
`(i) measure the performance of each State agency with respect to
the criteria established under subparagraph (A)(i); and
`(ii) subject to paragraph (3), award performance bonus payments in
the following fiscal year, in a total amount of $48,000,000 for each
fiscal year, to State agencies that meet standards for high or most
improved performance established by the Secretary under subparagraph
(A)(ii).
`(3) PROHIBITION ON RECEIPT OF PERFORMANCE BONUS PAYMENTS- A State
agency shall not be eligible for a performance bonus payment with respect to
any fiscal year for which the State agency has a liability amount
established under subsection (c)(1)(C).
`(4) PAYMENTS NOT SUBJECT TO JUDICIAL REVIEW- A determination by the
Secretary whether, and in what amount, to award a performance bonus payment
under this subsection shall not be subject to administrative or judicial
review.'.
(b) EFFECTIVE DATE- The amendment made by this section takes effect on the
date of enactment of this Act.
SEC. 4121. 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), by striking clause (vii) and inserting the
following:
`(vii) for each of fiscal years 2002 through 2007,
$90,000,000.';
(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 $20,000,000 for each of fiscal years 2002
through 2007 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 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--
`(I) is in the last month of the 3-month period described in
section 6(o)(2);
`(II) is not eligible for an exception under section
6(o)(3);
`(III) is not eligible for a waiver under section 6(o)(4);
and
`(IV) is not exempt under section 6(o)(6).'.
(b) 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 be rescinded
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'.
(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 `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'.
(e) EFFECTIVE DATE- The amendments made by this section take effect on the
date of enactment of this Act.
SEC. 4122. 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 `2007'; and
(2) in subparagraph (B)(ii), by striking `2002' and inserting
`2007'.
(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 `2007'.
(c) 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
`1996 through 2002' and inserting `2003 through 2007'.
SEC. 4123. EXPANDED GRANT AUTHORITY.
(a) IN GENERAL- 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.'.
(b) EFFECTIVE DATE- The amendments made by this section take effect on the
date of enactment of this Act.
SEC. 4124. CONSOLIDATED BLOCK GRANTS FOR PUERTO RICO AND AMERICAN
SAMOA.
(a) CONSOLIDATED FUNDING- Section 19 of the Food Stamp Act of 1977 (7
U.S.C. 2028) is amended--
(1) by striking the section heading and `(a)(1)(A) From' and all that
follows through `(2) The' and inserting the following:
`SEC. 19. CONSOLIDATED BLOCK GRANTS FOR PUERTO RICO AND AMERICAN SAMOA.
`(a) PAYMENTS TO GOVERNMENTAL ENTITIES-
`(1) DEFINITION OF GOVERNMENTAL ENTITY- In this subsection, the term
`governmental entity' means--
`(A) the Commonwealth of Puerto Rico; and
`(A) AMOUNT OF BLOCK GRANTS- From the sums appropriated under this
Act, the Secretary shall, subject to this section, pay to governmental
entities to pay the expenditures for nutrition assistance programs for
needy persons as described in subparagraphs (B) and (C)--
`(i) for fiscal year 2003, $1,401,000,000; and
`(ii) for each of fiscal years 2004 through 2007, the amount
specified in clause (i), as adjusted by the percentage by which the
thrifty food plan has been adjusted under section 3(o)(4) between June
30, 2002, and June 30 of the immediately preceding fiscal
year.
`(B) PAYMENTS TO COMMONWEALTH OF PUERTO RICO-
`(i) IN GENERAL- For fiscal year 2003 and each fiscal year
thereafter, the Secretary shall use 99.6 percent of the funds made
available under subparagraph (A) for payment to the Commonwealth of
Puerto Rico to pay--
`(I) 100 percent of the expenditures by the Commonwealth for the
fiscal year for the provision of nutrition assistance included in the
plan of the Commonwealth approved under subsection (b);
and
`(II) 50 percent of the related administrative
expenses.
`(ii) EXCEPTION FOR EXPENDITURES FOR CERTAIN SYSTEMS-
Notwithstanding clause (i), the Commonwealth of Puerto Rico may spend in
fiscal year 2002 or 2003 not more than $6,000,000 of the amount required
to be paid to the Commonwealth for fiscal year 2002 under this paragraph
(as in effect on the day before the date of enactment of this clause) 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 the nutrition assistance; and
`(III) operating systems to deliver the nutrition assistance
through electronic benefit transfers.
`(C) PAYMENTS TO AMERICAN SAMOA- For fiscal year 2003 and each fiscal
year thereafter, the Secretary shall use 0.4 percent of the funds made
available under subparagraph (A) for payment to American Samoa to pay 100
percent of the expenditures by American Samoa for a nutrition assistance
program extended under section 601(c) of Public Law 96-597 (48 U.S.C.
1469d(c)).
`(D) CARRYOVER OF FUNDS- For fiscal year 2002 and each fiscal year
thereafter, not more than 2 percent of the funds made available under this
paragraph for the fiscal year to each governmental entity may be carried
over to the following fiscal year.
`(3) TIME AND MANNER OF PAYMENTS TO COMMONWEALTH OF PUERTO RICO-
The';
(2) in subsection (b), by striking `subsection (a)(1)(A)' each place it
appears and inserting `subsection (a)(2)(B)'; and
(3) in subsection (c), by striking `subsection (a)(1)(A)' each place it
appears and inserting `subsection (a)(2)(A)'.
(b) 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 apply beginning on October 1, 2002.
(2) EXCEPTIONS- Subparagraphs (B)(ii) and (D) of section 19(a)(2) of the
Food Stamp Act of 1977 (as amended by subsection (a)(1)) apply beginning on
the date of enactment of this Act.
(d) EFFECTIVE DATE- The amendments made by this section take effect on the
date of enactment of this Act.
SEC. 4125. ASSISTANCE FOR COMMUNITY FOOD PROJECTS.
(a) IN GENERAL- Section 25 of the Food Stamp Act of 1977 (7 U.S.C. 2034)
is amended--
(A) by striking `(1)' and inserting `(1)(A)';
(B) by redesignating paragraphs (2) and (3) as subparagraphs (B) and
(C), respectively, of paragraph (1);
(C) in paragraph (1)(C) (as redesignated by subparagraph (B)), by
striking the period at the end and inserting `; or'; and
(D) by adding at the end the following:
`(2) meet specific State, local, or neighborhood food and agricultural
needs, including needs for--
`(A) infrastructure improvement and development;
`(B) planning for long-term solutions; or
`(C) the creation of innovative marketing activities that mutually
benefit agricultural producers and low-income consumers.';
(2) in subsection (b)(2)(B)--
(A) by striking `$2,500,000' and inserting `$5,000,000'; and
(B) by striking `2002' and inserting `2007';
(3) in subsection (d), 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 agricultural
problems of the communities, such as food policy councils and food planning
associations.'; and
(4) by striking subsection (h) and inserting the following:
`(h) INNOVATIVE PROGRAMS FOR ADDRESSING COMMON COMMUNITY PROBLEMS-
`(1) IN GENERAL- The Secretary shall offer to enter into a contract
with, or make a grant to, 1 nongovernmental organization that meets the
requirements of paragraph (2) to coordinate with Federal agencies, States,
political subdivisions, and nongovernmental organizations (collectively
referred to in this subsection as `targeted entities') to gather
information, and recommend to the targeted entities, innovative programs for
addressing common community problems, including--
`(A) loss of farms and ranches;
`(E) the need for job training; and
`(F) the need for self-sufficiency by individuals and
communities.
`(2) NONGOVERNMENTAL ORGANIZATION- The nongovernmental organization
referred to in paragraph (1) shall--
`(A) be selected by the Secretary on a competitive basis;
`(B) be experienced in working with other targeted entities and in
organizing workshops that demonstrate programs to other targeted
entities;
`(C) be experienced in identifying programs that effectively address
community problems described in paragraph (1) that can be implemented by
other targeted entities;
`(D) be experienced in, and capable of, receiving information from and
communicating with other targeted entities throughout the United
States;
`(E) be experienced in operating a national information clearinghouse
that addresses 1 or more of the community problems described in paragraph
(1); and
`(F) as a condition of entering into the contract or receiving the
grant referred to in paragraph (1), agree--
`(i) to contribute in-kind resources toward implementation of the
contract or grant;
`(ii) to provide to other targeted entities information and guidance
on the innovative programs referred to in paragraph (1); and
`(iii) to operate a national information clearinghouse on innovative
means for addressing community problems described in paragraph (1)
that--
`(I) is easily usable by--
`(aa) Federal, State, and local government agencies;
`(bb) local community leaders;
`(cc) nongovernmental organizations; and
`(dd) the public; and
`(II) includes information on approved community food
projects.
`(3) AUDITS; EFFECTIVE USE OF FUNDS- The Secretary shall establish
auditing procedures and otherwise ensure the effective use of funds made
available to carry out this subsection.
`(4) FUNDING- Not later than 90 days after the date of enactment of this
paragraph, and on October 1 of each of fiscal years 2003 through 2007, the
Secretary shall allocate to carry out this subsection $200,000 of the funds
made available under subsection (b), to remain available until
expended.'.
(b) EFFECTIVE DATE- The amendments made by this section take effect on the
date of enactment of this Act.
SEC. 4126. AVAILABILITY OF COMMODITIES FOR THE EMERGENCY FOOD ASSISTANCE
PROGRAM.
(a) IN GENERAL- Section 27(a) of the Food Stamp Act of 1977 (7 U.S.C.
2036(a)) is amended--
(1) by striking `1997 through 2002' and inserting `2002 through 2007';
and
(2) by striking `$100,000,000' and inserting `$140,000,000'.
(b) EFFECTIVE DATE- The amendments made by this section take effect on
October 1, 2001.
Subtitle B--Commodity Distribution
SEC. 4201. COMMODITY SUPPLEMENTAL FOOD PROGRAM.
(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 `2007'.
(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 2007, 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 assigned caseload slot shall be equal to the amount of the grant per
assigned caseload slot for administrative costs in 2001, 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 2007- For each of fiscal years 2004
through 2007, the amount of each grant per assigned caseload slot shall be
equal to the amount of the grant per assigned 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 `2007'; and
(3) by striking subsection (l) and inserting the following:
`(l) 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--
`(A) has been approved by the Secretary; or
`(B) has been approved or is otherwise allowed by the Secretary of
Health and Human Services.
`(2) PROGRAMS- A program referred to in paragraph (1) is a program
authorized under--
`(B) the Food Stamp Act of 1977 (7 U.S.C. 2011 et seq.);
`(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.).'.
(c) ADDITIONAL FUNDING FOR CERTAIN STATES-
(1) IN GENERAL- Not later than 30 days after the date of enactment of
this Act, of the funds of the Commodity Credit Corporation, the Secretary of
Agriculture shall make available an amount equal to the amount that the
Secretary of Agriculture determines to be necessary to permit each State
that began administering the commodity supplemental food program under the
Agriculture and Consumer Protection Act of 1973 (7 U.S.C. 612c note; Public
Law 93-86) in the 2000 caseload cycle to administer the program, through the
2002 caseload cycle, at a caseload level that is not less than the
originally assigned caseload level of the State.
(2) PROVISION TO STATES- The Secretary shall provide to each State
described in paragraph (1) for the purpose described in that paragraph the
funds made available under that paragraph.
(d) EFFECTIVE DATE- The amendment made by subsection (b)(3) takes effect
on the date of enactment of this Act.
SEC. 4202. COMMODITY DONATIONS.
(a) IN GENERAL- 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 that are essential
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.'.
(b) EFFECTIVE DATE- The amendments made by this section take effect on the
date of enactment of this Act.
SEC. 4203. 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
`2007'.
SEC. 4204. 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 `$50,000,000' and inserting `$60,000,000';
(2) by striking `1991 through 2002' and inserting `2003 through
2007';
(3) by striking `administrative';
(4) by inserting `storage,' after `processing,'; and
(5) by inserting `, including commodities secured 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))' after `sources'.
Subtitle C--Child Nutrition and Related Programs
SEC. 4301. COMMODITIES FOR SCHOOL LUNCH PROGRAM.
(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. 4302. 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. 4303. PURCHASES OF LOCALLY PRODUCED FOODS.
Section 9 of the Richard B. Russell National School Lunch Act (42 U.S.C.
1758) is amended by adding at the end the following:
`(j) PURCHASES OF LOCALLY PRODUCED FOODS-
`(1) IN GENERAL- The Secretary shall--
`(A) encourage institutions participating in the school lunch program
under this Act 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;
`(B) advise institutions participating in a program described in
subparagraph (A) of the policy described in that subparagraph and post
information concerning the policy on the website maintained by the
Secretary; and
`(C) in accordance with requirements established by the Secretary,
provide startup 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 subparagraph
(A).
`(2) AUTHORIZATION OF APPROPRIATIONS-
`(A) IN GENERAL- There is authorized to be appropriated to carry out
this subsection $400,000 for each of fiscal years 2003 through 2007, to
remain available until expended.
`(B) LIMITATION- No amounts may be made available to carry out this
subsection unless specifically provided by an appropriation
Act.'.
SEC. 4304. APPLICABILITY OF BUY-AMERICAN REQUIREMENT TO PUERTO RICO.
Section 12(n) of the Richard B. Russell National School Lunch Act (42
U.S.C. 1760(n)) is amended by adding at the end the following:
`(4) APPLICABILITY TO PUERTO RICO- Paragraph (2)(A) shall apply to a
school food authority in the Commonwealth of Puerto Rico with respect to
domestic commodities or products that are produced in the Commonwealth of
Puerto Rico in sufficient quantities to meet the needs of meals provided
under the school lunch program under this Act or the school breakfast
program under section 4 of the Child Nutrition Act of 1966 (42 U.S.C.
1773).'.
SEC. 4305. FRUIT AND VEGETABLE PILOT PROGRAM.
(a) IN GENERAL- Section 18 of the Richard B. Russell National School Lunch
Act (42 U.S.C. 1769) is amended by adding at the end the following:
`(g) FRUIT AND VEGETABLE PILOT PROGRAM-
`(1) IN GENERAL- In the school year beginning July 2002, the Secretary
shall carry out 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 fresh and dried fruits and
fresh vegetables throughout the school day in 1 or more areas designated by
the school.
`(2) 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.
`(3) REPORT- Not later than May 1, 2003, the Secretary, acting through
the Administrator of the Economic Research Service, shall report to the
Committee on Education and the Workforce of the House of Representatives and
the Committee on Agriculture, Nutrition, and Forestry of the Senate on the
results of the pilot program.
`(4) FUNDING- The Secretary shall use not more than $6,000,000 of funds
made available under section 32 of the Act of August 24, 1935 (7 U.S.C.
612c), to carry out this subsection (other than paragraph (3)).'.
(b) EFFECTIVE DATE- The amendment made by this section takes effect on the
date of enactment of this Act.
SEC. 4306. 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. 4307. WIC FARMERS' MARKET NUTRITION PROGRAM.
(a) IN GENERAL- 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:
`(ii) MANDATORY FUNDING- Not later than 30 days after the date of
enactment of the Food Stamp Reauthorization Act of 2002, of the funds of
the Commodity Credit Corporation, the Secretary shall make available to
carry out this subsection $15,000,000, to remain available until
expended.'.
(b) EFFECTIVE DATE- The amendments made by this section take effect on the
date of enactment of this Act.
Subtitle D--Miscellaneous
SEC. 4401. PARTIAL RESTORATION OF BENEFITS TO LEGAL IMMIGRANTS.
(a) 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
(b) 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 provided to individuals under the age of
18 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) EFFECTIVE DATE- The amendments made by this subsection take effect
on October 1, 2003.
(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)) is amended
by adding at the end the following:
`(L) FOOD STAMP EXCEPTION FOR CERTAIN QUALIFIED ALIENS- With respect
to eligibility for benefits for the specified Federal program described in
paragraph (3)(B), paragraph (1) shall not apply to any qualified alien who
has resided in the United States with a status within the meaning of the
term `qualified alien' for a period of 5 years or more beginning on the
date of the alien's entry into the United States.'.
(2) EFFECTIVE DATE- The amendment made by paragraph (1) takes effect on
April 1, 2003.
SEC. 4402. SENIORS FARMERS' MARKET NUTRITION PROGRAM.
(a) ESTABLISHMENT- The Secretary of Agriculture shall use $5,000,000 for
fiscal year 2002, and $15,000,000 for each of fiscal years 2003 through 2007,
of the funds available to the Commodity Credit Corporation to carry out and
expand a seniors farmers' market nutrition program.
(b) PROGRAM PURPOSES- The purposes of the seniors farmers' market
nutrition program are--
(1) to provide resources in the form of fresh, nutritious, unprepared,
locally grown fruits, vegetables, and herbs from farmers' markets, roadside
stands, and community supported agriculture programs to low-income
seniors;
(2) to increase the domestic consumption of agricultural commodities by
expanding or aiding in the expansion of domestic farmers' markets, roadside
stands, and community supported agriculture programs; and
(3) to develop or aid in the development of new and additional farmers'
markets, roadside stands, and community supported agriculture
programs.
(c) REGULATIONS- The Secretary may issue such regulations as the Secretary
considers necessary to carry out the seniors farmers' market nutrition
program.
SEC. 4403. NUTRITION INFORMATION AND AWARENESS PILOT PROGRAM.
(a) ESTABLISHMENT- The Secretary of Agriculture may establish, in not more
than 5 States, for a period not to exceed 4 years for each participating
State, a pilot program to increase the domestic consumption of fresh fruits
and vegetables.
(1) IN GENERAL- Subject to paragraph (2), the purpose of the program
shall be to provide funds to States solely for the purpose of assisting
eligible public and private sector entities with cost-share assistance to
carry out demonstration projects--
(A) to increase fruit and vegetable consumption; and
(B) to convey related health promotion messages.
(2) LIMITATION- Funds made available to a State under the program shall
not be used to disparage any agricultural commodity.
(1) IN GENERAL- 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 under the program--
(A) experience in carrying out similar projects or
activities;
(B) innovative approaches; and
(C) the ability of the State to promote and track increases in levels
of fruit and vegetable consumption.
(2) ENHANCEMENT OF EXISTING STATE PROGRAMS- The Secretary may use the
pilot program to enhance existing State programs that are consistent with
the purpose of the pilot program specified in subsection (b).
(d) ELIGIBLE PUBLIC AND PRIVATE SECTOR ENTITIES-
(1) IN GENERAL- A participating State shall establish eligibility
criteria under which the State may select public and private sector entities
to carry out demonstration projects under the program.
(2) LIMITATION- No funds made available to States under the program
shall be provided by a State to any foreign for-profit corporation.
(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) AUTHORIZATION OF APPROPRIATIONS- There is authorized to be
appropriated to carry out this section $10,000,000 for each of fiscal years
2002 through 2007.
SEC. 4404. HUNGER FELLOWSHIP PROGRAM.
(a) SHORT TITLE; FINDINGS-
(1) SHORT TITLE- This section may be cited as the `Congressional Hunger
Fellows Act of 2002'.
(2) FINDINGS- The Congress finds as follows:
(A) There is a critical need for compassionate individuals who are
committed to assisting people who suffer from hunger as well as a need for
such individuals to initiate and administer solutions to the hunger
problem.
(B) Bill Emerson, the distinguished late Representative from the 8th
District of Missouri, demonstrated his commitment to solving the problem
of hunger in a bipartisan manner, his commitment to public service, and
his great affection for the institution and the ideals of the United
States Congress.
(C) George T. (Mickey) Leland, the distinguished late Representative
from the 18th District of Texas, demonstrated his compassion for those in
need, his high regard for public service, and his lively exercise of
political talents.
(D) 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.
(E) These two 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, and
therefore it is especially appropriate to honor the memory of Mr. Emerson
and Mr. Leland by creating a fellowship program to develop and train the
future leaders of the United States to pursue careers in humanitarian
service.
(b) ESTABLISHMENT- There is established as an independent entity of the
legislative branch of the United States Government the Congressional Hunger
Fellows Program (hereinafter in this section referred to as the `Program').
(1) IN GENERAL- The Program shall be subject to the supervision and
direction of a Board of Trustees.
(2) MEMBERS OF THE BOARD OF TRUSTEES-
(A) APPOINTMENT- The Board shall be composed of 6 voting members
appointed under clause (i) and one nonvoting ex officio member designated
in clause (ii) as follows:
(i) VOTING MEMBERS- (I) The Speaker of the House of Representatives
shall appoint two members.
(II) The minority leader of the House of Representatives shall
appoint one member.
(III) The majority leader of the Senate shall appoint two
members.
(IV) The minority leader of the Senate shall appoint one
member.
(ii) NONVOTING MEMBER- The Executive Director of the program shall
serve as a nonvoting ex officio member of the Board.
(B) TERMS- Members of the Board shall serve a term of 4
years.
(i) AUTHORITY OF BOARD- A vacancy in the membership of the Board
does not affect the power of the remaining members to carry out this
section.
(ii) APPOINTMENT OF SUCCESSORS- A vacancy in the membership of the
Board shall be filled in the same manner in which the original
appointment was made.
(iii) INCOMPLETE TERM- If a member of the Board does not serve the
full term applicable to 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.
(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), members of the Board may not
receive compensation for service on the Board.
(ii) TRAVEL- Members of the Board may be reimbursed for travel,
subsistence, and other necessary expenses incurred in carrying out the
duties of the program.
(i) ESTABLISHMENT- The Board shall establish such bylaws and other
regulations as may be appropriate to enable the Board to carry out this
section, including the duties described in this paragraph.
(ii) CONTENTS- Such bylaws and other regulations shall include
provisions--
(I) for appropriate fiscal control, funds accountability, and
operating principles;
(II) to prevent any conflict of interest, or the appearance of any
conflict of interest, in the procurement and employment actions taken
by the Board or by any officer or employee of the Board and in 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) TRANSMITTAL TO CONGRESS- Not later than 90 days after the date
of the first meeting of the Board, the Chairperson of the Board shall
transmit to the appropriate congressional committees a copy of such
bylaws.
(B) BUDGET- For each fiscal year the program is in operation, the
Board shall determine a budget for the program for that fiscal year. All
spending by the program shall be pursuant to such 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 of Trustees shall
determine the priority of the programs to be carried out under this
section and the amount of funds to be allocated for the Emerson and Leland
fellowships.
(d) 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, to recognize the needs of people who are hungry
and poor, and to provide assistance and compassion for those in
need;
(B) to increase awareness of the importance of public service;
and
(C) to provide training and development opportunities for such leaders
through placement in programs operated by appropriate organizations or
entities.
(2) AUTHORITY- The program is authorized to develop such fellowships to
carry out the purposes of this section, 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.
(ii) FOCUS OF BILL EMERSON HUNGER FELLOWSHIP- The Bill Emerson
Hunger Fellowship shall address hunger and other humanitarian needs in
the United States.
(iii) FOCUS OF MICKEY LELAND HUNGER FELLOWSHIP- The Mickey Leland
Hunger Fellowship shall address international hunger and other
humanitarian needs.
(iv) WORKPLAN- 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 specific duties
and responsibilities related to those objectives.
(C) PERIOD OF FELLOWSHIP-
(i) EMERSON FELLOW- A Bill Emerson Hunger Fellowship awarded under
this paragraph shall be for no more than 1 year.
(ii) LELAND FELLOW- A Mickey Leland Hunger Fellowship awarded under
this paragraph shall be for no more than 2 years. Not less than 1 year
of the fellowship shall be dedicated to fulfilling the requirement of
subparagraph (B)(i)(I).
(D) SELECTION OF FELLOWS-
(i) IN GENERAL- A fellowship shall be awarded pursuant to 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 actual 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 determined to be appropriate by the
Board.
(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 fellowship from the
Bill Emerson Hunger Fellowship shall be known as an `Emerson
Fellow'.
(II) LELAND FELLOW- An individual awarded a fellowship from the
Mickey Leland Hunger Fellowship shall be known as a `Leland
Fellow'.
(4) EVALUATION- The program shall conduct periodic evaluations of the
Bill Emerson and Mickey Leland Hunger Fellowships. Such evaluations shall
include the following:
(A) An assessment of the successful completion of the work plan of the
fellow.
(B) An assessment of the impact of the fellowship on the
fellows.
(C) An assessment of the accomplishment of the purposes of the
program.
(D) An assessment of the impact of the fellow on the
community.
(1) ESTABLISHMENT- There is established the Congressional Hunger Fellows
Trust Fund (hereinafter in this section referred to as the `Fund') in the
Treasury of the United States, consisting of amounts appropriated to the
Fund under subsection (i), amounts credited to it under paragraph (3), and
amounts received under subsection (g)(3)(A).
(2) INVESTMENT OF FUNDS- The Secretary of the Treasury shall invest the
full amount of the Fund. Each investment shall be made 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 in consultation with the Board, has a maturity suitable for the
Fund.
(3) RETURN ON INVESTMENT- Except as provided in subsection (f)(2), the
Secretary of the Treasury shall credit to the Fund the interest on, and the
proceeds from the sale or redemption of, obligations held in the Fund.
(f) EXPENDITURES; AUDITS-
(1) IN GENERAL- The Secretary of the Treasury shall transfer to the
program from the amounts described in subsection (e)(3) and subsection
(g)(3)(A) such sums as the Board determines are necessary to enable the
program to carry out the provisions of this section.
(2) LIMITATION- The Secretary may not transfer to the program the
amounts appropriated to the Fund under subsection (i).
(3) USE OF FUNDS- Funds transferred to the program under paragraph (1)
shall be used for the following purposes:
(A) STIPENDS FOR FELLOWS- To provide for a living allowance for the
fellows.
(B) TRAVEL OF FELLOWS- To defray the costs of transportation of the
fellows to the fellowship placement sites.
(C) INSURANCE- To defray the costs of appropriate insurance of the
fellows, the program, and the Board.
(D) TRAINING OF FELLOWS- To defray the costs of preservice and
midservice education and training of fellows.
(E) SUPPORT STAFF- Staff described in subsection (g).
(F) AWARDS- End-of-service awards under subsection
(d)(3)(D)(iii)(II).
(G) ADDITIONAL APPROVED USES- For such other purposes that the Board
determines appropriate to carry out the program.
(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 (including records of salaries of
the Executive Director and other personnel), reports, files, and all other
papers, things, or property belonging to or in use by the program and
necessary to facilitate such audit.
(C) REPORT TO CONGRESS- The Comptroller General shall submit a copy of
the results of each such audit to the appropriate congressional
committees.
(g) STAFF; POWERS OF PROGRAM-
(A) IN GENERAL- The Board shall appoint an Executive Director of the
program who shall administer the program. The Executive Director shall
carry out such other functions consistent with the provisions of 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 of basic pay 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 additional personnel as
the Executive Director considers necessary and appropriate to carry out
the functions of the provisions of this section.
(B) COMPENSATION- An individual appointed under subparagraph (A) shall
be paid at a rate not to exceed the rate of basic pay payable for level
GS-15 of the General Schedule.
(3) POWERS- In order to carry out the provisions of this section, the
program may perform the following functions:
(A) GIFTS- 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. Gifts,
bequests, or devises of money and proceeds from sales of other property
received as gifts, bequests, or devises shall be deposited in the Fund and
shall be available for disbursement upon order of the Board.
(B) EXPERTS AND CONSULTANTS- The program may procure temporary and
intermittent services under section 3109 of title 5, United States Code,
but at rates for individuals not to exceed the daily equivalent of the
maximum annual rate of basic pay payable for GS-15 of the General
Schedule.
(C) CONTRACT AUTHORITY- The program may contract, with the approval of
a majority of the members of the Board, 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- The program shall make such other
expenditures which the program considers necessary to carry out the
provisions of this section, but excluding project development.
(h) 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 previous fiscal year, and shall include
the following:
(1) An analysis of the evaluations conducted under subsection (d)(4)
(relating to evaluations of the Emerson and Leland fellowships and
accomplishment of the program purposes) during that fiscal year.
(2) A statement of the total amount of funds attributable to gifts
received by the program in that fiscal year (as authorized under subsection
(g)(3)(A)), and the total amount of such funds that were expended to carry
out the program that fiscal year.
(i) AUTHORIZATION OF APPROPRIATIONS- There are authorized to be
appropriated $18,000,000 to carry out the provisions of this section.
(j) DEFINITION- In this section, the term `appropriate congressional
committees' means--
(1) the Committee on Agriculture and the Committee on International
Relations of the House of Representatives; and
(2) the Committee on Agriculture, Nutrition, and Forestry and the
Committee on Foreign Relations of the Senate.
SEC. 4405. GENERAL EFFECTIVE DATE.
Except as otherwise provided in this title, the amendments made by this
title take effect on October 1, 2002.
TITLE V--CREDIT
Subtitle A--Farm Ownership Loans
SEC. 5001. 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. 5002. 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 a temporary bridge loan made by a commercial or
cooperative lender to a 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 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. 5003. AMOUNT OF GUARANTEE OF LOANS FOR FARM OPERATIONS ON TRIBAL
LANDS.
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 FARM OPERATIONS ON TRIBAL LANDS-
In the case of an operating loan made to a farmer or rancher whose farm or
ranch land is subject to the jurisdiction of an Indian tribe and whose loan
is secured by 1 or more security instruments that are subject to the
jurisdiction of an Indian tribe, the Secretary shall guarantee 95 percent of
the loan.'.
SEC. 5004. 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. 5005. 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 `15 years';
and
(2) in subsection (c)(3)(B), by striking `10-year' and inserting
`15-year'.
SEC. 5006. 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- If the Secretary makes a determination that the risk is
comparable under subsection (b), the Secretary shall carry out a pilot program
in not fewer than 5 States, as determined by the Secretary, to guarantee up to
5 loans per State in each of fiscal years 2003 through 2007 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- Not later than October 1, 2002, the
Secretary shall make a determination on whether 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. 5101. DIRECT LOANS.
Section 311(c) of the Consolidated Farm and Rural Development Act (7
U.S.C. 1941(c)) is amended--
(A) in the matter that precedes subparagraph (A), by striking
`paragraph (3)' and inserting `paragraphs (3) and (4)'; and
(B) in subparagraph (A), by striking `who has not' and all that
follows through `5 years'; and
(2) by adding at the end the following:
`(A) FARM AND RANCH OPERATIONS ON TRIBAL LANDS- 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 whose farm or ranch land is
subject to the jurisdiction of an Indian tribe and whose loan is secured
by 1 or more security instruments that are subject to the jurisdiction of
an Indian tribe if the Secretary determines that commercial credit is not
generally available for such farm 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)).'.
SEC. 5102. SUSPENSION OF LIMITATION ON PERIOD FOR WHICH BORROWERS ARE
ELIGIBLE FOR GUARANTEED ASSISTANCE.
During the period beginning January 1, 2002, and ending December 31, 2006,
section 319(b) of the Consolidated Farm and Rural Development Act (7 U.S.C.
1949(b)) shall have no force or effect.
Subtitle C--Emergency Loans
SEC. 5201. EMERGENCY LOANS IN RESPONSE TO AN EMERGENCY RESULTING FROM
QUARANTINES.
(a) LOAN AUTHORITY- Section 321(a) of the Consolidated Farm and Rural
Development Act (7 U.S.C. 1961(a)) is amended--
(1) in each of the 1st and 3rd sentences, by striking `a natural
disaster in the United States or by' and inserting `a quarantine imposed by
the Secretary under the Plant Protection Act or the animal quarantine laws
(as defined in section 2509 of the Food, Agriculture, Conservation, and
Trade Act of 1990), a natural disaster in the United States, or'; and
(2) in the 4th sentence--
(A) by striking `a natural disaster' and inserting `such a quarantine
or natural disaster'; and
(B) by striking `by such natural disaster' and inserting `by such
quarantine or natural disaster'.
(b) CONFORMING AMENDMENT- Section 323 of such Act (7 U.S.C. 1963) is
amended by inserting `quarantine,' before `natural disaster'.
Subtitle D--Administrative Provisions
SEC. 5301. EVALUATIONS OF DIRECT AND GUARANTEED LOAN PROGRAMS.
(a) STUDIES- The Secretary of Agriculture shall conduct 2 studies of the
direct and guaranteed loan progams under sections 302 and 311 of the
Consolidated Farm and Rural Development Act, each of which shall include an
examination of the number, average principal amount, and delinquency and
default rates of loans provided or guaranteed during the period covered by the
study.
(1) FIRST STUDY- One study under subsection (a) shall cover the 1-year
period that begins 1 year after the date of the enactment of this
section.
(2) SECOND STUDY- One study under subsection (a) shall cover the 1-year
period that begins 3 years after such date of enactment.
(c) REPORTS TO THE CONGRESS- At the end of the period covered by each
study under this section, the Secretary of Agriculture shall submit to the
Congress a report that contains an evaluation of the results of the study,
including an analysis of the effectiveness of loan programs referred to in
subsection (a) in meeting the credit needs of agricultural producers in an
efficient and fiscally responsible manner.
SEC. 5302. ELIGIBILITY OF TRUSTS AND 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), and 1961(a)) are
each amended by striking `and joint operations' each place it appears and
inserting `joint operations, trusts, 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, trusts, or
limited liability companies'.
SEC. 5303. DEBT SETTLEMENT.
Section 331(b)(4) of the Consolidated Farm and Rural Development Act (7
U.S.C. 1981(b)(4)) is amended--
(1) by striking `The Secretary may release' and inserting `After
consultation with a local or area county committee, the Secretary may
release'; and
(2) by striking `carried out--' and all that follows through `(B) after'
and inserting `carried out after'.
SEC. 5304. 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. 5305. 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. 5306. ELIMINATION OF REQUIREMENT THAT SECRETARY REQUIRE COUNTY
COMMITTEES TO CERTIFY IN WRITING THAT CERTAIN LOAN REVIEWS HAVE BEEN
CONDUCTED.
Section 333(2) of the Consolidated Farm and Rural Development Act (7
U.S.C. 1983(2)) is amended to read as follows:
`(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. 5307. SIMPLIFIED LOAN GUARANTEE APPLICATION AVAILABLE FOR LOANS OF
GREATER AMOUNTS.
Section 333A(g)(1) of the Consolidated Farm and Rural Development Act (7
U.S.C. 1983a(g)(1)) is amended by striking `$50,000' and inserting
`$125,000'.
SEC. 5308. 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';
and
(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).'.
SEC. 5309. ADMINISTRATION OF CERTIFIED LENDERS AND PREFERRED CERTIFIED
LENDERS PROGRAMS.
Section 339 of the Consolidated Farm and Rural Development Act (7 U.S.C.
1989) is amended by adding at the end the following:
`(e) ADMINISTRATION OF CERTIFIED LENDERS AND PREFERRED CERTIFIED LENDERS
PROGRAMS- The Secretary may administer the loan guarantee programs under
subsections (c) and (d) through central offices established in States or in
multi-State areas.'.
SEC. 5310. 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)(B) of the Consolidated Farm and
Rural Development Act (7 U.S.C. 1991(a)(12)(B)) is amended to read as
follows:
`(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. 5311. LOAN AUTHORIZATION LEVELS.
Section 346(b)(1) of the Consolidated Farm and Rural Development Act (7
U.S.C. 1994(b)(1)) is amended to read as follows:
`(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
2003 through 2007, 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.'.
SEC. 5312. RESERVATION OF FUNDS FOR DIRECT OPERATING LOANS FOR BEGINNING
FARMERS AND RANCHERS.
Section 346(b)(2)(A)(ii)(III) of the Consolidated Farm and Rural
Development Act (7 U.S.C. 1994(b)(2)(A)(ii)(III)) is amended by striking `2000
through 2002' and inserting `2003 through 2007'.
SEC. 5313. 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); and
(2) 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 15
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 March 1 of the fiscal year.'.
SEC. 5314. REAMORTIZATION OF RECAPTURE PAYMENTS.
Section 353(e)(7) of the Consolidated Farm and Rural Development Act (7
U.S.C. 2001(e)(7)) is amended by adding at the end the following:
`(i) IN GENERAL- The Secretary may modify the amortization of a
recapture payment referred to in subparagraph (A) of this paragraph on
which a payment has become delinquent by using loan service tools under
section 343(b)(3) if--
`(I) the default is due to circumstances beyond the control of the
borrower; and
`(II) the borrower acted in good faith (as determined by the
Secretary) in attempting to repay the recapture amount.
`(I) TERM OF REAMORTIZATION- The term of a reamortization under
this subparagraph may not exceed 25 years from the date of the
original amortization agreement.
`(II) NO REDUCTION OR PRINCIPAL OR UNPAID INTEREST DUE- A
reamortization of a recapture payment under this subparagraph may not
provide for reducing the outstanding principal or unpaid interest due
on the recapture payment.
SEC. 5315. ALLOCATION OF CERTAIN FUNDS FOR SOCIALLY DISADVANTAGED FARMERS
AND RANCHERS.
The last sentence of section 355(c)(2) of the Consolidated Farm and Rural
Development Act (7 U.S.C. 2003(c)(2)) is amended to read as follows: `Any
funds reserved and allocated under this paragraph but not used within a State
shall, to the extent necessary to satisfy pending applications under this
title, be available for use by socially disadvantaged farmers and ranchers in
other States, as determined by the Secretary, and any remaining funds shall be
reallocated within the State.'.
SEC. 5316. 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. 5317. TIMING OF LOAN ASSESSMENTS.
Section 360(a) of the Consolidated Farm and Rural Development Act (7
U.S.C. 2006b(a)) is amended by striking `After an applicant is determined
eligible for assistance under this title by the appropriate county committee
established pursuant to section 332, the' and inserting `The'.
SEC. 5318. 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'.
SEC. 5319. LOAN ELIGIBILITY FOR BORROWERS WITH PRIOR DEBT FORGIVENESS.
Section 373(b)(2)(A) of the Consolidated Farm and Rural Development Act (7
U.S.C. 2008h(b)(2)(A)) is amended--
(1) in clause (i), by striking `or';
(2) in clause (ii), by striking the period and inserting `; or';
and
(3) by adding at the end the following:
`(iii) received debt forgiveness on not more than 1 occasion
resulting directly and primarily from a major disaster or emergency
designated by the President on or after April 4, 1996, under the Robert
T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5121
et seq.).'.
SEC. 5320. MAKING AND SERVICING OF LOANS BY PERSONNEL OF STATE, COUNTY, OR
AREA COMMITTEES.
Subtitle D of the Consolidated Farm and Rural Development Act (7 U.S.C.
1981-2008j) is amended by adding at the end the following:
`SEC. 376. MAKING AND SERVICING OF LOANS BY PERSONNEL OF STATE, COUNTY, OR
AREA COMMITTEES.
`The Secretary shall use personnel of a State, county or area committee
established under section 8(b)(5) of the Soil Conservation and Domestic
Allotment Act (16 U.S.C 590h(b)(5)) to make and service loans under this title
to the extent the personnel have been trained to do so.'.
SEC. 5321. ELIGIBILITY OF EMPLOYEES OF STATE, COUNTY, OR AREA COMMITTEE FOR
LOANS AND LOAN GUARANTEES.
Subtitle D of the Consolidated Farm and Rural Development Act (7 U.S.C.
1981-2008j) is further amended by adding at the end the following:
`SEC. 377. ELIGIBILITY OF EMPLOYEES OF STATE, COUNTY, OR AREA COMMITTEE FOR
LOANS AND LOAN GUARANTEES.
`(a) IN GENERAL- The Secretary shall not prohibit an employee of a State,
county or area committee established under section 8(b)(5) of the Soil
Conservation and Domestic Allotment Act (16 U.S.C. 590h(b)(5)) or an employee
of the Department of Agriculture from obtaining a loan or loan guarantee under
subtitle A, B or C of this title.
`(1) COUNTY OR AREA OFFICE- In the case of a loan application from an
employee in a county or area office, the Farm Service Agency State office
shall be responsible for reviewing and approving the application.
`(2) STATE OFFICE- In the case of a loan application from an employee of
a State office, the Farm Service Agency national office shall be responsible
for reviewing and approving the application.'.
Subtitle E--Farm Credit
SEC. 5401. 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. 5402. 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. 5403. 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) APPLICABILITY- The amendments made by this section shall apply with
respect to determinations of premiums for calendar year 2002 and for any
succeeding calendar year, and to certified statements with respect to such
premiums.
Subtitle F--General Provisions
SEC. 5501. 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,'.
TITLE VI--RURAL DEVELOPMENT
Subtitle A--Consolidated Farm and Rural Development Act
SEC. 6001. ELIGIBILITY OF RURAL EMPOWERMENT ZONES AND RURAL ENTERPRISE
COMMUNITIES FOR DIRECT AND GUARANTEED LOANS FOR ESSENTIAL COMMUNITY
FACILITIES.
Section 306(a)(1) of the Consolidated Farm and Rural Development Act (7
U.S.C. 1926(a)(1)) is amended by inserting after the first sentence the
following: `The Secretary may also make or insure loans to communities that
have been designated as rural empowerment zones or rural enterprise
communities pursuant to part I of subchapter U of chapter 1 of the Internal
Revenue Code of 1986, or as rural enterprise communities pursuant to section
766 of the Agriculture, Rural Development, Food and Drug Administration, and
Related Agencies Appropriations Act, 1999 (Public Law 105-277; 112 Stat. 2681,
2681-37), to provide for the installation or improvement of essential
community facilities including necessary related equipment, and to furnish
financial assistance or other aid in planning projects for such purposes.'.
SEC. 6002. 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 `aggregating not to exceed $590,000,000 in any fiscal
year';
(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 must 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 to the Secretary an annual report that
describes the number and size of communities served and the type of
financing provided.
`(vii) AUTHORIZATION OF APPROPRIATIONS- There are authorized to be
appropriated to carry out this subparagraph $30,000,000 for each of
fiscal years 2002 through 2007.'.
SEC. 6003. 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 `2007'.
SEC. 6004. CHILD DAY CARE 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 CHILD 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. 6005. 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 adding 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' in title III of the
Agriculture, Rural Development, Food and Drug Administration, and Related
Agencies Appropriations Act, 2002 (115 Stat. 719).
`(C) AUTHORIZATION OF APPROPRIATIONS- There is authorized to be
appropriated to carry out this paragraph $15,000,000 for fiscal year 2003
and each fiscal year thereafter.'.
SEC. 6006. 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 6005) is amended by adding 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 give 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 2007.'.
SEC. 6007. 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 6006) is amended by
adding at the end the following:
`(24) LOAN GUARANTEES FOR WATER, WASTEWATER, AND ESSENTIAL COMMUNITY
FACILITIES LOANS-
`(A) IN GENERAL- The Secretary may guarantee a loan made to finance a
community facility or water or waste facility project in a rural area,
including a loan financed by the net proceeds of a bond described in
section 142(a) 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
shall 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 GUARANTEES FOR CERTAIN LOANS- The Secretary may guarantee loans
made under subsection (a) to finance the issuance of bonds for the projects
described in section 306(a)(24).'.
SEC. 6008. 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 6007(a)) is amended by adding at the
end the following:
`(25) 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 that provides 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 2007.'.
SEC. 6009. EMERGENCY AND IMMINENT COMMUNITY WATER ASSISTANCE GRANT
PROGRAM.
Section 306A of the Consolidated Farm and Rural Development Act (7 U.S.C.
1926a) is amended--
(1) in the section heading, by inserting `and imminent' after
`emergency';
(A) in paragraph (1), by inserting `, or when such a decline is
imminent' before the semicolon at the end; and
(i) in subparagraph (A), by striking `acute' and inserting `acute,
or imminent,'; and
(ii) in subparagraph (B), by striking `decline' and inserting
`decline, or imminent decline,';
(3) in subsection (c)(2), by striking `occurred' and inserting
`occurred, or will occur,';
(4) in subsection (d), by striking paragraph (1) and inserting the
following:
`(1) IN GENERAL- Grants made under this section may be used--
`(A) for waterline extensions from existing systems, laying of new
waterlines, repairs, significant maintenance, digging of new wells,
equipment replacement, and hook and tap fees;
`(B) for any other appropriate purpose associated with developing
sources of, treating, storing, or distributing water;
`(C) to assist communities in complying with the requirements of the
Federal Water Pollution Control Act (33 U.S.C. 1251 et seq.) or the Safe
Drinking Water Act (42 U.S.C. 300f et seq.); and
`(D) to provide potable water to communities through other
means.';
(5) in subsection (f)(2), by striking `$75,000' and inserting
`$150,000';
(A) in the second sentence of paragraph (1), by striking `decline' and
inserting `decline, or imminent decline,'; and
(B) by striking paragraph (2) and inserting the following:
`(2) TIMING OF REVIEW OF APPLICATIONS-
`(A) SIMPLIFIED APPLICATION- The application process developed by the
Secretary under paragraph (1) shall include a simplified application form
that will permit expedited consideration of an application for a grant
filed under this section.
`(B) PRIORITY REVIEW- In processing applications for any water or
waste grant or loan authorized under this title, the Secretary shall
afford priority processing to an application for a grant under this
section to the extent funds will be available for an award on the
application at the conclusion of priority processing.
`(C) TIMING- The Secretary shall, to the maximum extent practicable,
review and act on an application under this section within 60 days after
the date on which the application is submitted to the Secretary.';
and
(7) by striking subsection (i) and inserting the following:
`(A) IN GENERAL- For each fiscal year, not less than 3 nor more than 5
percent of the total amount made available to carry out section 306(a)(2)
for the fiscal year shall be reserved for grants under this
section.
`(B) RELEASE- Funds reserved under subparagraph (A) for a fiscal year
shall be reserved only until July 1 of the fiscal year.
`(2) AUTHORIZATION OF APPROPRIATIONS- In addition to funds made
available under paragraph (1), there is authorized to be appropriated to
carry out this section $35,000,000 for each of fiscal years 2003 through
2007.'.
SEC. 6010. WATER AND WASTE FACILITY GRANTS FOR NATIVE AMERICAN TRIBES.
Section 306C of the Consolidated Farm and Rural Development Act (7 U.S.C.
1926c) is amended by striking subsection (e) and inserting the following:
`(e) AUTHORIZATION OF APPROPRIATIONS-
`(1) IN GENERAL- Subject to paragraph (2), there are 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) in addition to grants provided under subparagraph (A), 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 paragraph (1)(C).'.
SEC. 6011. GRANTS FOR 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
2007'.
SEC. 6012. GRANTS TO NONPROFIT ORGANIZATIONS TO FINANCE THE CONSTRUCTION,
REFURBISHING, AND SERVICING OF INDIVIDUALLY-OWNED HOUSEHOLD WATER WELL SYSTEMS
IN RURAL AREAS FOR INDIVIDUALS WITH LOW OR MODERATE INCOMES.
(a) IN GENERAL- The Consolidated Farm and Rural Development Act is amended
by inserting after section 306D (7 U.S.C. 1926d) the following:
`SEC. 306E. GRANTS TO NONPROFIT ORGANIZATIONS TO FINANCE THE CONSTRUCTION,
REFURBISHING, AND SERVICING OF INDIVIDUALLY-OWNED HOUSEHOLD WATER WELL SYSTEMS
IN RURAL AREAS FOR INDIVIDUALS WITH LOW OR MODERATE INCOMES.
`(a) DEFINITION OF ELIGIBLE INDIVIDUAL- In this section, the term
`eligible individual' means an individual who is a member of a household the
members of which have a combined income (for the most recent 12-month period
for which the information is available) that is not more than 100 percent of
the median nonmetropolitan household income for the State or territory in
which the individual resides, according to the most recent decennial census of
the United States.
`(1) IN GENERAL- The Secretary may make grants to private nonprofit
organizations for the purpose of providing loans to eligible individuals for
the construction, refurbishing, and servicing of individual household water
well systems in rural areas that are or will be owned by the eligible
individuals.
`(2) TERMS OF LOANS- A loan made with grant funds under this
section--
`(A) shall have an interest rate of 1 percent;
`(B) shall have a term not to exceed 20 years; and
`(C) shall not exceed $8,000 for each water well system described in
paragraph (1).
`(3) ADMINISTRATIVE EXPENSES- A recipient of a grant made under this
section may use grant funds to pay administrative expenses associated with
providing the assistance described in paragraph (1), as determined by the
Secretary.
`(c) PRIORITY IN AWARDING GRANTS- In awarding grants under this section,
the Secretary shall give priority to an applicant that has substantial
expertise and experience in promoting the safe and productive use of
individually-owned household water well systems and ground water.
`(d) AUTHORIZATION OF APPROPRIATIONS- There is authorized to be
appropriated to carry out this section $10,000,000 for each of fiscal years
2003 through 2007.'.
(b) EFFECTIVE DATE- The amendment made by subsection (a) takes effect on
October 1, 2002.
SEC. 6013. LOANS AND LOAN GUARANTEES FOR RENEWABLE ENERGY SYSTEMS.
Section 310B(a)(3) of the Consolidated Farm and Rural Development Act (7
U.S.C. 1932(a)(3)) is amended by inserting `and other renewable energy systems
(including wind energy systems and anaerobic digestors for the purpose of
energy generation)' after `solar energy systems'.
SEC. 6014. 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 `(1) IN GENERAL- The Secretary' and inserting the
following:
`(A) IN GENERAL- 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 not 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. 6015. 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 `2007'.
SEC. 6016. 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 2007.'.
SEC. 6017. BUSINESS AND INDUSTRY LOAN MODIFICATIONS.
Section 310B 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) DEFINITION OF BUSINESS AND INDUSTRY LOAN- In this subsection, the
term `business and industry loan' means a business and industry direct or
guaranteed loan that is made or guaranteed by the Secretary under subsection
(a)(1).
`(2) LOAN GUARANTEES FOR THE PURCHASE OF COOPERATIVE STOCK-
`(A) IN GENERAL- The Secretary may guarantee a business and industry
loan to individual farmers or ranchers for the purpose of purchasing
capital stock of a farmer or rancher cooperative established for the
purpose of processing an agricultural commodity.
`(B) PROCESSING CONTRACTS DURING INITIAL PERIOD- A cooperative
described in subparagraph (A) for which a farmer or rancher receives a
guarantee to purchase stock under subparagraph (A) 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.
`(C) FINANCIAL INFORMATION- Financial information required by the
Secretary from a farmer or rancher as a condition of making a business and
industry loan guarantee under this paragraph shall be provided in the
manner generally required by commercial agricultural lenders in the
area.
`(3) LOANS TO COOPERATIVES-
`(A) IN GENERAL- The Secretary may make or guarantee a business and
industry loan to a cooperative organization that is headquartered in a
metropolitan area if the loan is used for a project or venture described
in subsection (a) that is located in a rural area or a loan guarantee that
meets the requirements of paragraph (6).
`(B) REFINANCING- A cooperative organization that is eligible for a
business and industry loan shall be eligible to refinance an existing
business and industry loan with a lender if--
`(i) the cooperative organization--
`(I) is current and performing with respect to the existing loan;
and
`(II) is not, and has not been, in payment default, or the
collateral of which has not been converted, with respect to the
existing loan; and
`(ii) there is adequate security or full collateral for the
refinanced loan.
`(4) LOAN APPRAISALS- The Secretary may require that any appraisal made
in connection with a business and industry loan be conducted by a
specialized appraiser that uses standards that are similar to standards used
for similar purposes in the private sector, as determined by the
Secretary.
`(5) FEES- The Secretary may assess a 1-time fee for any guaranteed
business and industry loan in an amount that does not exceed 2 percent of
the guaranteed principal portion of the loan.
`(6) LOAN GUARANTEES IN NONRURAL AREAS-
`(A) IN GENERAL- The Secretary may guarantee a business and industry
loan to a cooperative organization for a facility that is not located in a
rural area if--
`(i) the primary purpose of the loan guarantee is for a facility to
provide value-added processing for agricultural producers that are
located within 80 miles of the facility;
`(ii) the applicant demonstrates to the Secretary that the primary
benefit of the loan guarantee will be to provide employment for
residents of a rural area; and
`(iii) the total amount of business and industry loans guaranteed
for a fiscal year under this paragraph does not exceed 10 percent of the
business and industry loans guaranteed for the fiscal year under
subsection (a)(1).
`(B) PRINCIPAL AMOUNTS- The principal amount of a business and
industry loan guaranteed under this paragraph may not exceed
$25,000,000.
`(7) INTANGIBLE ASSETS- In determining whether a cooperative
organization is eligible for a guaranteed business and industry loan, the
Secretary may consider the market value of a properly appraised brand name,
patent, or trademark of the cooperative.
`(8) Limitations on loan guarantees for cooperative organizations-
`(i) IN GENERAL- Subject to clause (ii), the principal amount of a
business and industry loan made to a cooperative organization and
guaranteed under this subsection shall not exceed
$40,000,000.
`(ii) USE- To be eligible for a guarantee under this subsection for
a business and industry loan made to a cooperative organization, the
principal amount of the any such loan in excess of $25,000,000 shall be
used to carry out a project--
`(I) in a rural area; and
`(II) that provides for the value-added processing of agricultural
commodities.
`(B) APPLICATIONS- If a cooperative organization submits an
application for a guarantee under this subsection of a business and
industry loan with a principal amount that is in excess of $25,000,000,
the Secretary--
`(i) shall review and, if appropriate, approve the application;
and
`(ii) may not delegate the approval authority.
`(C) MAXIMUM AMOUNT- The total amount of business and industry loans
made to cooperative organizations and guaranteed for a fiscal year under
this subsection with principal amounts that are in excess of $25,000,000
may not exceed 10 percent of the business and industry loans guaranteed
for the fiscal year under subsection (a)(1).'.
SEC. 6018. 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 5006) 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. 6019. 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 5307) 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 $125,000 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. 6020. 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 any area other than--
`(i) a city or town that has a population of greater than 50,000
inhabitants; and
`(ii) the urbanized area contiguous and adjacent to such a city or
town.
`(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), (2), and (24) 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), (21), and (24) of section 306(a), the terms `rural' and `rural
area' mean a city, town, or unincorporated area that has a population of
not more than 20,000 inhabitants.
`(D) MULTIJURISDICTIONAL REGIONAL PLANNING ORGANIZATIONS; NATIONAL
RURAL DEVELOPMENT PARTNERSHIP- In sections 306(a)(23) and 378, 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.
`(E) RURAL BUSINESS INVESTMENT PROGRAM- In subtitle 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. 6021. NATIONAL RURAL DEVELOPMENT PARTNERSHIP.
Subtitle D of the Consolidated Farm and Rural Development Act (7 U.S.C.
1981 et seq.) (as amended by section 5321) is amended by adding at the end the
following:
`SEC. 378. 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 implements a Federal law, or administers a
program, targeted at or having a significant impact on rural areas.
`(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 to empower and build
the capacity of States and rural communities to design flexible and
innovative responses to their own special rural development needs, with
local determinations of progress and selection of projects and
activities.
`(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 may 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 with rural
responsibilities 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, the Coordinating Committee and State rural
development councils.
`(c) NATIONAL RURAL DEVELOPMENT COORDINATING COMMITTEE-
`(1) ESTABLISHMENT- The Secretary shall establish a National Rural
Development Coordinating Committee within the Department of
Agriculture.
`(2) COMPOSITION- The Coordinating Committee shall be composed
of--
`(A) 1 representative of each agency with rural responsibilities;
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) support the work of the State rural development
councils;
`(B) facilitate coordination of rural development policies, programs,
and activities among Federal agencies and with those of State, local, and
tribal governments, the private sector, and nonprofit
organizations;
`(C) review and comment on policies, regulations, and proposed
legislation that affect or would affect rural areas and gather and provide
related information;
`(D) develop and facilitate strategies to reduce or eliminate
administrative and regulatory impediments; and
`(E) require each State rural development council receiving funds
under this section to submit an annual report on the use of the funds,
including a description of strategic plans, goals, performance measures,
and outcomes for the State rural development council of the
State.
`(4) FEDERAL PARTICIPATION IN COORDINATING COMMITTEE-
`(A) IN GENERAL- A Federal employee shall fully participate in the
governance and operations of the Coordinating Committee, including
activities related to grants, contracts, and other agreements, in
accordance with this section.
`(B) CONFLICTS- Participation by a Federal employee in the
Coordinating Committee in accordance with this paragraph shall not
constitute a violation of section 205 or 208 of title 18, United States
Code.
`(5) ADMINISTRATIVE SUPPORT- The Secretary may provide such
administrative support for the Coordinating Committee as the Secretary
determines is necessary to carry out the duties of the Coordinating
Committee.
`(6) PROCEDURES- The Secretary may prescribe such regulations, bylaws,
or other procedures as are necessary for the operation of the Coordinating
Committee.
`(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 recognize a State rural
development council.
`(2) COMPOSITION- A State rural development council shall--
`(A) be composed of representatives of Federal, State, local, and
tribal governments, nonprofit organizations, regional organizations, the
private sector, and other entities committed to rural advancement;
and
`(B) have a nonpartisan and nondiscriminatory membership
that--
`(i) is broad and representative of the economic, social, and
political diversity of the State; and
`(ii) shall be responsible for the governance and operations of the
State rural development council.
`(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 have an impact on rural areas
of the State;
`(B) monitor, report, and comment on policies and programs that
address, or fail to address, the needs of the rural areas of the
State;
`(C) as part of the Partnership, 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; and
`(D)(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) FEDERAL PARTICIPATION IN STATE RURAL DEVELOPMENT COUNCILS-
`(A) IN GENERAL- A State Director for Rural Development of the
Department of Agriculture, other employees of the Department, and
employees of other Federal agencies with rural responsibilities shall
fully participate as voting members in the governance and operations of
State rural development councils (including activities related to grants,
contracts, and other agreements in accordance with this section) on an
equal basis with other members of the State rural development
councils.
`(B) CONFLICTS- Participation by a Federal employee in a State rural
development council in accordance with this paragraph shall not constitute
a violation of section 205 or 208 of title 18, United States
Code.
`(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
to the Secretary for the support of the Partnership 1 or more employees of
the agency with rural responsibilities without reimbursement for a period
of up to 1 year.
`(B) CIVIL SERVICE STATUS- The detail shall be without interruption or
loss of civil service status or privilege.
`(2) ADDITIONAL SUPPORT- The Secretary may provide for any additional
support staff to the Partnership as the Secretary determines to be necessary
to carry out the duties of the Partnership.
`(3) INTERMEDIARIES- The Secretary may enter into a contract with a
qualified intermediary under which the intermediary shall be responsible for
providing administrative and technical assistance to a State rural
development council, including administering the financial assistance
available to the State rural development council.
`(f) 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 from a Federal agency under subsection (g)(2).
`(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.
`(3) DEPARTMENT'S SHARE- The Secretary shall develop a plan to decrease,
over time, the share of the Department of Agriculture of the cost of the
core operations of State rural development councils.
`(1) AUTHORIZATION OF APPROPRIATIONS- There is authorized to be
appropriated to carry out this section $10,000,000 for each of fiscal years
2003 through 2007.
`(A) IN GENERAL- Notwithstanding any other provision of law limiting
the ability of an agency, along with other agencies, to provide funds to
the Coordinating Committee or a State rural development council in order
to carry out the purposes of this section, a Federal agency may make
grants, gifts, or contributions to, provide technical assistance to, or
enter into contracts or cooperative agreements with, the Coordinating
Committee or a State rural development council.
`(B) ASSISTANCE- Federal agencies are encouraged to use funds made
available for programs that have an impact on rural areas to provide
assistance to, and enter into contracts with, the Coordinating Committee
or a State rural development council, as described in subparagraph
(A).
`(3) CONTRIBUTIONS- The Coordinating Committee and a State rural
development council may accept private contributions.
`(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.'.
SEC. 6022. RURAL TELEWORK.
Subtitle D of the Consolidated Farm and Rural Development Act (7 U.S.C.
1981 et seq.) (as amended by section 6021) is amended by adding at the end the
following:
`SEC. 379. 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, in a rural area (except for the
institute), that meets the requirements of this section and such other
requirements as are established by the Secretary.
`(2) INSTITUTE- The term `institute' means a 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 1 or more grants 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 (2).
`(2) PROJECTS- The institute shall use grant funds received 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,
30 percent of the amount of the grant; and
`(ii) during each of the fourth and fifth years of the project, 50
percent of the amount of the grant.
`(B) INDIAN TRIBES- Notwithstanding subparagraph (A), an Indian tribe
may use any Federal funds made available to the Indian 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, computer software, consultant services, computer
networking equipment, and related services.
`(1) IN GENERAL- Subject to paragraphs (2) through (5), the Secretary
shall make grants to eligible organizations 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) APPLICATIONS- To be eligible to receive a grant under this
subsection, an eligible organization shall submit to the Secretary, and
receive the approval of the Secretary of, an application for the grant that
demonstrates that the eligible organization 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, computer software, consultant services,
computer networking equipment, and related 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 expand or operate a telework location in a rural area after
the date that is 3 years after the establishment of the telework
location.
`(5) AMOUNT- The amount of a grant provided to an eligible organization
under this subsection shall be not less than $1,000,000 and not more than
$2,000,000.
`(d) APPLICABILITY OF CERTAIN FEDERAL LAW- An eligible organization 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 2007, of which $5,000,000 shall be provided to establish and
support an institute under subsection (b).'.
SEC. 6023. HISTORIC BARN PRESERVATION.
Subtitle D of the Consolidated Farm and Rural Development Act (7 U.S.C.
1981 et seq.) (as amended by section 6022) is amended by adding at the end the
following:
`SEC. 379A. 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 agricultural
activities conducted 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 described in section 501(c)(3) of the Internal Revenue Code
of 1986 and exempt from taxation under section 501(a) of such Code;
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 Under Secretary of Rural Development.
`(b) PROGRAM- The Secretary shall establish a historic barn preservation
program--
`(1) to assist States in developing a list 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 applicant 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.
`(4) 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 2007.'.
SEC. 6024. GRANTS FOR NOAA WEATHER RADIO TRANSMITTERS.
Subtitle D of the Consolidated Farm and Rural Development Act (7 U.S.C.
1981 et seq.) (as amended by section 6023)) is amended by adding at the end
the following:
`SEC. 379B. GRANTS FOR NOAA 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, and
borrowers of loans made by the Rural Utilities Service, for the Federal share
of the cost of acquiring radio transmitters to increase coverage of rural
areas by the all hazards 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 all hazards 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 total cost of acquiring a radio transmitter, as
described in subsection (a).
`(d) 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 2007.'.
SEC. 6025. GRANTS TO TRAIN FARM WORKERS IN NEW TECHNOLOGIES AND TO TRAIN
FARM WORKERS IN SPECIALIZED SKILLS NECESSARY FOR HIGHER VALUE CROPS.
Subtitle D of the Consolidated Farm and Rural Development Act (7 U.S.C.
1981 et seq.) (as amended by section 6024) is amended by adding at the end the
following:
`SEC. 379C. GRANTS TO TRAIN FARM WORKERS IN NEW TECHNOLOGIES AND TO TRAIN
FARM WORKERS IN SPECIALIZED SKILLS NECESSARY FOR HIGHER VALUE CROPS.
`(a) IN GENERAL- The Secretary shall make grants to nonprofit
organizations, or to a consortium of nonprofit organizations, agribusinesses,
State and local governments, agricultural labor organizations, farmer or
rancher cooperatives, and community-based organizations with the capacity to
train farm workers.
`(b) USE OF FUNDS- An entity to which a grant is made under this section
shall use the grant to train farm workers to use new technologies and develop
specialized skills for agricultural development.
`(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 2007.'.
SEC. 6026. RURAL COMMUNITY ADVANCEMENT PROGRAM.
(a) NATIONAL RESERVE PROGRAM- Section 381E of the Consolidated Farm and
Rural Development Act (7 U.S.C. 2009d) is amended--
(A) by striking paragraph (4); and
(B) by redesignating paragraph (5) as paragraph (4);
(2) by striking subsection (e);
(3) by redesignating subsections (f) through (h) as subsections (e)
through (g), respectively; and
(4) in subsection (g) (as so redesignated), by striking `subsection (g)
of this section' and inserting `subsection (f)'.
(b) RURAL VENTURE CAPITAL DEMONSTRATION PROGRAM- Section 381O of the
Consolidated Farm and Rural Development Act (7 U.S.C. 2009n) is repealed.
(c) CONFORMING AMENDMENTS- Section 381G of the Consolidated Farm and Rural
Development Act (7 U.S.C. 2009f(a)) is amended--
(1) in subsection (a), by striking `section 381E(g)' each place it
appears and inserting `section 381E(f)'; and
(2) in subsection (b)(1), by striking `section 381E(h)' and inserting
`section 381E(g)'.
SEC. 6027. DELTA REGIONAL AUTHORITY.
(a) VOTING- Section 382B(c) of the Consolidated Farm and Rural Development
Act (7 U.S.C. 2009aa-1(c)) is amended by striking paragraph (1) and inserting
the following:
`(A) TEMPORARY METHOD- During the period beginning on the date of
enactment of this subparagraph and ending on December 31, 2004, a decision
by the Authority shall require the affirmative vote of the Federal
cochairperson and a majority of the State members (not including any
member representing a State that is delinquent under subsection (g)(2)(C))
to be effective.
`(B) PERMANENT METHOD- Effective beginning on January 1, 2005, a
decision by the Authority shall require a majority vote of the Authority
(not including any member representing a State that is delinquent under
subsection (g)(2)(C)) to be effective.'.
(b) AUTHORITY TO ISSUE REGULATIONS- Section 382B(e)(4) of the Consolidated
Farm and Rural Development Act (7 U.S.C. 2009aa-1(e)(4)) is amended by
striking `and rules' and inserting `, rules, and regulations'.
(c) ECONOMIC AND COMMUNITY DEVELOPMENT GRANTS- Section 382C(b) of the
Consolidated Farm and Rural Development Act (7 U.S.C. 2009aa-2(b)) is amended
by striking paragraph (3).
(d) 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) the States or communities lack the economic resources to provide
the required matching share; or
`(2) there are insufficient funds available under the applicable Federal
law authorizing the Federal grant program to meet pressing needs of the
region.
`(b) FEDERAL GRANT PROGRAM FUNDING- Notwithstanding any provision of law
limiting the Federal share, the areas eligible for assistance, or the
authorizations of appropriations of any Federal grant program, and in
accordance with subsection (c), the Authority, with the approval of the
Federal cochairperson and with respect to a project to be carried out in the
region--
`(1) may increase the Federal share of the costs of a project under the
Federal grant program to not more than 90 percent (except as provided in
section 382F(b)); and
`(2) shall use amounts made available to carry out this subtitle to pay
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.'.
(e) GRANTS TO LOCAL DEVELOPMENT AGENCIES- Section 382E(b)(1) of the
Consolidated Farm and Rural Development Act (7 U.S.C. 2009aa-4(b)(1)) is
amended by striking `may' and inserting `shall'.
(f) APPROVAL OF DEVELOPMENT PLANS AND PROJECTS- Section 382I of the
Consolidated Farm and Rural Development Act (7 U.S.C. 2009aa-8) is
amended--
(1) in subsection (a), by inserting `and approved' after `reviewed';
and
(2) in subsection (d), by striking `VOTES FOR DECISIONS- ' and inserting
`APPROVAL OF GRANT APPLICATIONS- '.
(g) 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 `2007'.
(h) 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 `2007'.
(i) 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 6025) is amended by adding at the end the following:
`SEC. 379D. 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 2007.'.
(j) 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. 6028. NORTHERN GREAT PLAINS REGIONAL AUTHORITY.
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--Northern Great Plains Regional Authority
`SEC. 383A. DEFINITIONS.
`(1) AUTHORITY- The term `Authority' means the Northern Great Plains
Regional Authority established by section 383B.
`(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. 383B. 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 383I.
`(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. 383C. 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 383I--
`(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.
`SEC. 383D. 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--
`(1) may increase the Federal share of the costs of a project under any
Federal grant program to not more than 90 percent (except as provided in
section 383F(b)); and
`(2) shall use amounts made available to carry out this subtitle to pay
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 383I--
`(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. 383E. 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. 383F. 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 383M 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 383D(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 paragraph (2), 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 383E(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 383M for transportation, telecommunication, and basic public
infrastructure projects authorized under paragraphs (1) and (3) of section
383C(a).
`SEC. 383G. 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 383B(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. 383H. 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. 383I. 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 383H;
`(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
383B(c) shall be required for approval of the application.
`SEC. 383J. 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. 383K. 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. 383L. 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. 383M. 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
2007, 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. 383N. TERMINATION OF AUTHORITY.
`The authority provided by this subtitle terminates effective October 1,
2007.'.
SEC. 6029. RURAL BUSINESS INVESTMENT PROGRAM.
The Consolidated Farm and Rural Development Act (as amended by section
6028) 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(e).
`(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(e), 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)(I) the paid-in capital and paid-in surplus of a corporate rural
business investment company;
`(II) the contributed capital of the partners of a partnership rural
business investment company; or
`(III) the equity investment of the members of a limited liability
company rural business investment company; and
`(ii) unfunded binding commitments from investors that meet criteria
established by the Secretary to contribute capital to the rural business
investment company, except that--
`(I) unfunded commitments may be counted as private capital for
purposes of approval by the Secretary of any request for leverage;
but
`(II) leverage shall not be funded based on the
commitments.
`(B) EXCLUSIONS- The term `private capital' does not
include--
`(i) any funds borrowed by a rural business investment company from
any source;
`(ii) any funds obtained through the issuance of leverage;
or
`(iii) any funds obtained directly or indirectly from the Federal
Government or any State (including by a political subdivision, agency,
or instrumentality of the Federal Government or a State), except
for--
`(I) funds obtained from the business revenues (excluding any
governmental appropriation) of any federally chartered or
government-sponsored enterprise established prior to the date of
enactment of this subtitle;
`(II) funds invested by an employee welfare benefit plan or
pension plan; and
`(III) any qualified nonprivate funds (if the investors of the
qualified nonprivate funds do not control, directly or indirectly, the
management, board of directors, general partners, or members of the
rural business investment company).
`(12) QUALIFIED NONPRIVATE FUNDS- The term `qualified nonprivate funds'
means any--
`(A) funds directly or indirectly invested in any applicant or rural
business investment company on or before the date of enactment of 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(e); 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(e) 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
enterprises.
`(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, as 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) STATUS- Not later than 90 days after the initial receipt by the
Secretary of an application under this section, the Secretary shall provide to
the applicant a written report describing the status of the application and
any requirements remaining for completion of the application.
`(d) MATTERS CONSIDERED- In reviewing and processing any application under
this section, the Secretary--
`(1) shall determine whether--
`(A) the applicant meets the requirements of subsection (e);
and
`(B) the management of the applicant is qualified and has the
knowledge, experience, and capability necessary to comply with this
subtitle;
`(2) shall take into consideration--
`(A) the need for and availability of financing for rural business
concerns in the geographic area in which the applicant is to commence
business;
`(B) the general business reputation of the owners and management of
the applicant; and
`(C) the probability of successful operations of the applicant,
including adequate profitability and financial soundness; and
`(3) shall not take into consideration any projected shortage or
unavailability of grant funds or leverage.
`(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 license 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 more 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--
`(I) reasonably projects profitable operations; and
`(II) 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 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 150,000 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 expended 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 liable in a civil action for 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 liable in a civil action for 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.
`(a) IN GENERAL- Notwithstanding any other provision of law, to carry out
the day-to-day management and operation of the program authorized by this
subtitle on behalf of the Secretary, the Secretary shall enter into an
interagency agreement under section 1535 of title 31, United States Code, with
another Federal agency that has considerable expertise in operating a program
under which capital is provided for equity investments in private sector
companies.
`(b) FUNDING- The costs incurred by a Federal agency entering into an
agreement under subsection (a) shall be reimbursed in accordance with section
1535 of title 31, United States Code, from amounts made available under
section 384S(a)(2).
`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- Notwithstanding any other provision of law, of the funds
of the Commodity Credit Corporation, the Secretary shall make available--
`(1) such sums as may be necessary for the cost of guaranteeing
$280,000,000 of debentures under this subtitle; and
`(2) $44,000,000 to make grants under this subtitle.
`(b) AVAILABILITY OF FUNDS- Funds transferred under subsection (a) shall
remain available until expended.'.
SEC. 6030. RURAL STRATEGIC INVESTMENT PROGRAM.
The Consolidated Farm and Rural Development Act (as amended by section
6029) is amended by adding at the end the following:
`Subtitle I--Rural Strategic Investment Program
`SEC. 385A. PURPOSE.
`The purpose of this subtitle is to establish a rural strategic investment
program--
`(1) to provide rural communities with flexible resources to develop
comprehensive, collaborative, and locally-based strategic planning
processes; and
`(2) to implement innovative community and economic development
strategies that optimize regional competitive advantages.
`SEC. 385B. DEFINITIONS.
`(1) BENCHMARK- The term `benchmark' means an annual set of strategies
and goals of a Regional Board established for the purpose of measuring
performance in meeting the regional plan of the Regional Board.
`(2) CONFERENCE- The term `Conference' means the National Conference on
Rural America conducted under section 385H.
`(A) IN GENERAL- The term `eligible area' means a nonmetropolitan
county (as defined by the Secretary) that has a population of 50,000
inhabitants or less.
`(i) IN GENERAL- Subject to clause (ii), the term `eligible area'
includes an unincorporated or other area of a county that has a
population of more than 50,000 inhabitants if the unincorporated area or
other area is adjacent to an eligible rural area described in
subparagraph (A).
`(ii) PARTICIPATION- An area described in clause (i) may be
represented on a Regional Board.
`(C) EXCLUSION- The term `eligible area' does not include any area
designated by the Secretary as a rural empowerment zone or rural
enterprise community.
`(4) INNOVATION GRANT- The term `innovation grant' means an innovation
grant made by the National Board to a Regional Board under section
385G.
`(5) NATIONAL BOARD- The term `National Board' means the National Board
on Rural America established under section 385D(a).
`(6) NATIONAL PLAN- The term `national plan' means a national strategic
investment plan of the National Board developed under section
385D(d)(3).
`(7) PLANNING GRANT- The term `planning grant' means a regional
strategic investment planning grant made by the National Board to a Regional
Board under section 385F.
`(8) PROGRAM- The term `program' means the rural strategic investment
program established under this subtitle.
`(9) REGION- The term `region' means the eligible areas that--
`(A) are under the jurisdiction of a Regional Board; and
`(B) meet criteria established by the National Board not later than 1
year after the date of enactment of this subtitle.
`(10) REGIONAL BOARD- The term `Regional Board' means a Regional
Investment Board certified under section 385C(a).
`(11) REGIONAL PLAN- The term `regional plan' means a regional strategic
investment plan of a Regional Board developed under section
385C(b)(3)(B).
`SEC. 385C. REGIONAL INVESTMENT BOARDS.
`(a) IN GENERAL- The National Board may certify a group representing the
interests described in subsection (b)(2)(A) as a Regional Investment Board
created to develop and implement a regional strategic investment plan for
grants made under this subtitle to promote investment in eligible areas.
`(b) REQUIREMENTS FOR CERTIFICATION-
`(1) IN GENERAL- A Regional Board shall meet the requirements of this
subsection for certification.
`(A) IN GENERAL- A Regional Board shall be composed of residents of
the region that broadly represent diverse public, nonprofit, and private
sector interests in investment in the region, including (to the maximum
extent practicable) representatives of--
`(i) units of local government (including multijurisdictional units
of local government);
`(ii) in the case of regions with Indian populations, Indian tribes
(as defined in section 4 of the Indian Self-Determination and Education
Assistance Act (25 U.S.C. 450b));
`(iii) private nonprofit community-based development
organizations;
`(iv) regional development organizations;
`(v) private business organizations;
`(vi) other entities and organizations, as determined by the
Regional Board; and
`(vii) consortia of entities and organizations described in clauses
(i) through (vii).
`(B) LOCAL PUBLIC-PRIVATE REPRESENTATION- Of the members of a Regional
Board, to the maximum extent practicable--
`(i) 1/2 of the members shall be representatives of units of local
government and Indian tribes described in subparagraph (A);
and
`(ii) 1/2 of the members shall be representatives of nonprofit,
regional, private, and other entities and organizations described in
subparagraph (A).
`(i) IN GENERAL- An officer or employee of a Federal or State agency
may serve as an ex-officio, non-voting member of a Regional Board
representing the agency.
`(ii) CONFLICTS- Participation by a Federal officer or employee in
activities of the Regional Board shall not constitute a violation of
section 205 or 208 of title 18, United States Code.
`(D) CERTIFICATION- To be certified by the National Board, a Regional
Board shall demonstrate to the National Board that the Regional Board is
broadly representative of the interests described in subparagraph
(A).
`(i) IN GENERAL- Prior to certification of the Regional Board by the
National Board, representatives of interests described in subparagraph
(A) that participated in the development of a Regional Board may appeal
the composition of the Regional Board to the National Board on the
ground that--
`(I) the composition of the Regional Board does not adequately
reflect the purposes of the program; or
`(II) the selection process for the Regional Board unfairly
disadvantaged those interests.
`(ii) ACTION BY NATIONAL BOARD- The National Board shall act on any
appeal of the composition of a Regional Board before taking action on
the certification of the Regional Board.
`(3) DUTIES AND PURPOSE- The organizational documents of the proposed
Regional Board shall demonstrate that, on certification, the Regional Board
shall--
`(A) create a collaborative, inclusive public-private planning
process;
`(B) develop, and submit to the National Board for approval, a
regional strategic investment plan that meets the requirements of section
385F, with benchmarks, to promote investment in eligible areas through the
use of grants made available under this subtitle;
`(C) implement the approved regional plan;
`(D) provide annual reports to the Secretary and the National Board on
progress made in achieving the benchmarks of the regional plan, including
an annual financial statement; and
`(E) select a non-Federal organization (such as a regional development
organization) in the local area served by the Regional Board that has
previous experience in the management of Federal funds to serve as fiscal
manager of any funds of the Regional Board.
`SEC. 385D. NATIONAL BOARD ON RURAL AMERICA.
`(1) IN GENERAL- The Secretary shall establish a National Board on Rural
America to carry out the rural strategic investment program established
under this subtitle.
`(2) SUPERVISION AND DIRECTION- Except as otherwise provided in this
subtitle, the National Board shall be subject to the general supervision and
direction of the Secretary.
`(A) APPOINTMENT- In addition to the Secretary or the designee of the
Secretary, the National Board shall consist of 14 members appointed by the
Secretary from among--
`(i) representatives of nationally recognized entrepreneurship
organizations;
`(ii) representatives of regional planning and development
organizations;
`(iii) representatives of community-based organizations;
`(iv) elected members of county governments;
`(v) elected members of State legislatures;
`(vi) representatives of the rural philanthropic community;
and
`(vii) representatives of Indian tribes (as defined in section 4 of
the Indian Self-Determination and Education Assistance Act (25 U.S.C.
450b)).
`(B) RECOMMENDATIONS- In appointing the members of the National Board
under subparagraph (A), the Secretary shall consider recommendations made
by--
`(i) the chairman and ranking member of each of the Committee on
Agriculture of the House of Representatives and the Committee on
Agriculture, Nutrition, and Forestry of the Senate;
`(ii) the Majority Leader of the Senate; and
`(iii) the Speaker of the House of Representatives.
`(A) IN GENERAL- Subject to subparagraph (B), the term of office of a
member of the National Board appointed under paragraph (1)(A) shall be 4
years.
`(B) STAGGERED INITIAL TERMS- Of the initial members of the National
Board appointed under paragraph (1)(A), the term of office of--
`(i) 5 members shall be 4 years;
`(ii) 5 members shall be 3 years; and
`(iii) 4 members shall be 2 years.
`(4) INITIAL APPOINTMENTS- Not later than 90 days after the date of
enactment of this subtitle, the Secretary shall appoint the initial members
of the National Board under paragraph (1)(A).
`(A) SPECIAL ASSISTANT TO THE PRESIDENT FOR RURAL POLICY- If appointed
by the President under section 6406(1) of the Farm Security and Rural
Investment Act of 2002, the Special Assistant to the President for Rural
Policy shall serve as an ex-officio, non-voting member of the National
Board.
`(B) OTHER MEMBERS- In consultation with the chairman and ranking
member of each of the Committee on Agriculture of the House of
Representatives and the Committee on Agriculture, Nutrition, and Forestry
of the Senate, the Secretary may appoint not more than 3 other officers or
employees of the Executive Branch to serve as ex-officio, non-voting
members of the National Board.
`(6) VACANCIES- A vacancy on the National Board shall be filled in the
same manner as the original appointment.
`(7) COMPENSATION- A member of the National Board shall receive no
compensation for service on the National Board, but shall be reimbursed for
travel and other expenses incurred in carrying out the duties of the member
of the National Board in accordance with section 5702 and 5703 of title 5,
United States Code.
`(8) CHAIRPERSON- The National Board shall select a chairperson from
among the members of the National Board.
`(A) TIME AND PLACE- The National Board shall meet at the call of the
chairperson.
`(B) QUORUM- A quorum of the National Board shall consist of a
majority of the members.
`(C) MAJORITY VOTE- A decision of the National Board shall be made by
majority vote.
`(10) FEDERAL STATUS- For purposes of Federal law, a member of the
National Board shall be considered a special Government employee (as defined
in section 202(a) of title 18, United States Code).
`(11) CONFLICT OF INTEREST-
`(A) IN GENERAL- Except as provided in subparagraph (C), no member of
the National Board shall vote on any matter respecting any application for
a grant or other particular matter pending before the National Board in
which, to the knowledge of the member, the member, spouse, or child of the
member, partner, or organization in which the member is serving as
officer, director, trustee, partner, or employee, or any person or
organization with whom the member is negotiating or has any arrangement
concerning prospective employment, has a financial interest.
`(B) VIOLATIONS- A violation of subparagraph (A) by a member of the
National Board shall be cause for removal of the member, but shall not
impair or otherwise affect the validity of any otherwise lawful action by
the National Board in which the member participated.
`(C) EXCEPTION- Subparagraph (A) shall not apply to the extent a
member of the National Board advises the National Board of the nature of
the particular matter in which the member proposes to participate,
if--
`(i) the member makes a full disclosure of the financial interest;
and
`(ii) prior to any participation by the member, the National Board
determines, by majority vote of the other members of the National Board,
that the financial interest is too remote or too inconsequential to
affect the integrity of the services of the member to the National Board
in that matter.
`(c) ADMINISTRATIVE SUPPORT- The Secretary, on a reimbursable basis, may
provide such administrative support to the National Board as the Secretary
determines is necessary to carry out the duties of the National Board.
`(d) DUTIES- The National Board shall--
`(1) certify Regional Boards in accordance with section 385C, with the
initial certification of Regional Boards occurring not later than 540 days
after the date of enactment of this subtitle;
`(2) approve, negotiate, or disapprove each regional plan that is
submitted by a Regional Board to the National Board under section
385C;
`(3) develop, and submit to the Secretary for approval, a national
strategic investment plan;
`(4) use the amount received from the Secretary under section 385E to
make planning grants and innovation grants to Regional Boards and to
otherwise carry out the program;
`(5) provide leadership and advice to Regional Boards on issues, best
practices, and emerging trends relating to rural development;
`(6) evaluate the progress of each Regional Board in achieving the
benchmarks of the regional plan using annual reports submitted under section
385C(b)(3)(D) and any other information that is available to the Regional
Board; and
`(7) submit an annual report on the performance of Regional Boards and
the program to--
`(A) the Committee on Agriculture of the House of
Representatives;
`(B) the Committee on Agriculture, Nutrition, and Forestry of the
Senate; and
`SEC. 385E. RURAL STRATEGIC INVESTMENT PROGRAM.
`(a) IN GENERAL- If the Secretary approves a national strategic investment
plan submitted by the National Board, of the funds of the Commodity Credit
Corporation, the Secretary shall transfer to the National Board $100,000,000,
to remain available until expended, for the Board to use to make planning
grants and innovation grants to Regional Boards and to otherwise carry out
this subtitle.
`(b) USE BY NATIONAL BOARD- Of the amount transferred by the Secretary to
the National Board under subsection (a), the National Board shall use--
`(1) not less than $8,000,000 to make planning grants to Regional Boards
under section 385F;
`(2) not less than $87,000,000 to make innovation grants to Regional
Boards under section 385G; and
`(3) the remainder of the funds to carry out section 385H and administer
this subtitle (other than section 385H).
`SEC. 385F. REGIONAL STRATEGIC INVESTMENT PLANNING GRANTS.
`(a) IN GENERAL- The National Board shall use amounts made available under
section 385E(b)(1) to make not fewer than 80 planning grants, on a competitive
basis, to applicant Regional Boards to develop, maintain, evaluate, and report
progress on regional strategic investment plans in accordance with section
385C and this section.
`(b) REGIONAL PLANS- A regional plan for a region covered by a Regional
Board shall, to the maximum extent practicable, cover--
`(1) basic infrastructure needs of the region;
`(2) basic services within the region;
`(3) opportunities for economic diversification and innovation within
the region, with particular attention to entrepreneurial support and
innovation;
`(4) the current and future human resource capacity of the region;
`(5) access to market-based financing and venture and equity capital in
the region;
`(6) the development of innovative public and private collaborations for
investments in the region; and
`(7) other appropriate matters, as determined by the National Board and
the Secretary.
`(c) PREFERENCES- In awarding planning grants, the National Board shall
give a preference to planning grants that will be used to address community
capacity building and community sustainability.
`(d) AMOUNT- The total amount of a planning grant made to a Regional Board
shall not exceed $100,000.
`(1) IN GENERAL- Subject to paragraphs (2) and (3), the share of the
costs of developing, maintaining, evaluating, and reporting on a regional
plan funded by a grant under this section shall not exceed 50 percent.
`(A) IN GENERAL. Except as provided in subparagraph (B), a Regional
Board shall pay the grantee share of the costs described in paragraph (1)
in the form of cash, services, materials, or other in-kind
contributions.
`(B) LIMITATION- A grantee shall not pay more than 50 percent of the
grantee share in the form of services, materials, or other in-kind
contributions.
`(3) INCREASED SHARE- The National Board may increase the share of the
costs covered by a planning grant made to a Regional Board under this
section if a limited ability of the Regional Board to pay would otherwise
create a barrier to full participation in the program.
`SEC. 385G. INNOVATION GRANTS.
`(a) IN GENERAL- The National Board shall use amounts made available under
section 385E(b)(2) to make innovation grants, on a competitive basis, to
Regional Boards to implement projects that are identified in the regional
plans of the Regional Boards.
`(1) IN GENERAL- For a Regional Board to be eligible to receive an
innovation grant, the National Board shall determine that--
`(A) the regional plan of a Regional Board meets the requirements of
this subtitle;
`(B) the management and organizational structure of the Regional Board
is sufficient to oversee grant projects;
`(C) the Regional Board will be able to provide the grantee share
required under this section; and
`(D) the Regional Board agrees to achieve, to the maximum extent
practicable, the performance-based benchmarks of the regional
plan.
`(2) RELATIONSHIP TO PLANNING GRANTS- A Regional Board that meets the
requirements of paragraph (1) shall be eligible to receive an innovation
grant, regardless of whether the Regional Board receives a planning
grant.
`(c) SELECTION- Subject to subsection (d), of the applications submitted
by Regional Boards for innovation grants, the National Board shall, to the
maximum extent practicable, select not fewer than 30 regional boards to
receive innovation grants.
`(d) PREFERENCES- In awarding innovation grants, the National Board shall
give a preference (in order of priority) to Regional Boards that--
`(1) exhibit collaborative innovation and entrepreneurship, particularly
within a public-private partnership;
`(2) represent a broad coalition of interests described in section
385C(b)(2)(A);
`(3) demonstrate a plan to leverage public (Federal and non-federal) and
private funds and existing assets, including natural assets and public
infrastructure;
`(4) address gaps in existing basic services within a region;
`(5) address economic diversification, including agricultural and
non-agriculturally based economies, within a regional framework;
`(6) demonstrate a plan to achieve multijurisdictional regional planning
and development, with particular evidence of economic development successes
within diverse stakeholder frameworks; or
`(7) meet other community development needs identified by a Regional
Board.
`(1) LEVERAGE- A Regional Board shall prioritize projects, in part, on
the degree to which the Regional Board is able to leverage additional funds
for the implementation of the projects.
`(2) PURPOSES- A Regional Board may use an innovation grant provided for
a region--
`(A) to support the development of critical infrastructure necessary
to facilitate economic development in the region;
`(B) to provide assistance to entities within the region that provide
basic public services;
`(C) to assist with job training, workforce development, or other
needs related to the development and maintenance of strong local and
regional economies;
`(D) to assist in the development of unique new collaborations that
link public, private, and philanthropic resources to achieve
collaboratively designed regional advancement; and
`(E) to provide support to business investment.
`(3) OTHER DEPARTMENT PROGRAMS- A Regional Board may not use an
innovation grant provided for a region for any purpose for which funding may
be obtained under any other rural development program of the Department of
Agriculture unless--
`(A) the Regional Board--
`(i) has submitted an application for the funding under the other
program; and
`(ii) withdraws the application; and
`(B) the National Board approves use of the innovation grant for that
purpose.
`(4) OPERATING EXPENSES- A Regional Board may use for administrative
costs in carrying out programs and activities related to the grant the
greater of--
`(B) 5 percent of the amount of an innovation grant provided.
`(1) IN GENERAL- The amount of an innovation grant made to a Regional
Board shall not exceed $3,000,000.
`(2) AVAILABILITY- The amount of an innovation grant made to a Regional
Board shall remain available until expended.
`(1) IN GENERAL- Subject to paragraphs (2) and (3), the share of the
costs of projects covered by an innovation grant made to a Regional Board
under this section shall not exceed 75 percent, as determined by the
National Board.
`(2) FORM- A Regional Board may pay the grantee share of the costs of
projects covered by an innovation grant in the form of cash or services,
materials, or other in-kind contributions.
`(3) WAIVER OF GRANTEE SHARE- The National Board may waive the grantee
share of the costs of projects covered by an innovation grant made to a
Regional Board under this section if the National Board determines that such
a waiver is appropriate.
`(4) OTHER FEDERAL PROGRAMS- For the purpose of determining grantee
share requirements for any other Federal programs, funds provided for
innovation grants shall be considered to be non-Federal funds.
`(h) NEGOTIATION- The National Board may--
`(1) negotiate with a Regional Board on the substance, size, and scope
of a regional plan; and
`(2) approve an innovation grant for an amount that is lower than the
amount requested by the Regional Board.
`(i) NONCOMPLIANCE- If a Regional Board fails to comply with the
requirements of this section, the National Board may take such actions as are
necessary to obtain reimbursement of unused grant funds.
`(j) OTHER USES- The National Board may use not more than 5 percent of the
amounts made available for innovation grants--
`(1) to provide assistance to interests described in section
385C(b)(2)(A) to obtain certification of a Regional Board;
`(2) to provide assistance for emergent innovative opportunities that
are not covered by existing regional plans;
`(3) to provide technical assistance, research, organizational support,
and other capacity building infrastructure to support existing Regional
Boards;
`(4) to provide assistance for other entrepreneurial opportunities to
advance the goals of the program; or
`(5) to advance a more integrative rural policy framework for the United
States.
`(k) TRANSFERS- To ensure maximum use of funds provided under this
subtitle, the National Board may transfer not more than 10 percent of the
amount of funds made available between planning grants and innovation
grants.
`SEC. 385H. NATIONAL CONFERENCE ON RURAL AMERICA.
`(a) IN GENERAL- The President shall call and conduct a National
Conference on Rural America, which shall be held not earlier than November 1,
2002, and not later than October 30, 2004.
`(b) PURPOSE- The purpose of the Conference shall be to bring together the
resources of governmental agencies and the private and nonprofit sectors to
develop--
`(1) policy recommendations and integrative strategies for addressing
the unique challenges facing rural areas of the United States; and
`(2) an implementation plan, with outcome-based measurements, for
addressing the challenges.
`(1) IN GENERAL- The Conference shall be comprised of--
`(A) representatives of organizations devoted to rural
development;
`(B) Members of Congress, including the chairman and ranking member of
each of the Committee on Agriculture of the House of Representatives and
the Committee on Agriculture, Nutrition, and Forestry of the
Senate;
`(C) representatives of the Department of Agriculture and other
Federal agencies;
`(D) State, local, and tribal elected officials and
representatives;
`(E) representatives of colleges and universities, State and tribal
extension services, and State rural development councils; and
`(F) individuals with specialized knowledge of and expertise in rural
and community development, cooperative business, agricultural credit,
venture capital, health care, and rural demography.
`(2) SELECTION- Of the participants in the Conference described in
paragraph (1)--
`(A) 1/3 of the members shall be selected by the President;
`(B) 1/3 of the members shall be selected by the Chairman and the
ranking member of the Committee on Agriculture of the House of
Representatives; and
`(C) 1/3 of the members shall be selected by the Chairman and the
ranking member of the Committee on Agriculture, Nutrition, and Forestry of
the Senate.
`(3) REPRESENTATION- In selecting the participants of the Conference,
the President and the Chairman of each Committee referred to in paragraph
(2) shall ensure, to the maximum extent practicable, that the participants
are representative of the ethnic, racial, and linguistic diversity of rural
areas of the United States.
`(1) REPORT TO PRESIDENT- Not later than 120 days after the termination
of the Conference, the Conference shall submit to the President a report
that contains the findings and recommendations of the Conference, including
findings and recommendations to address needs related to--
`(B) rural health issues;
`(D) opportunities for economic diversification and innovation within
rural America, with particular attention to entrepreneurial support and
innovation;
`(E) the current and future human resource capacity of rural
America;
`(F) access to market-based financing and venture and equity capital
in rural America; and
`(G) the development of innovative public and private collaborations
for investments in rural America.
`(2) REPORT MADE PUBLIC AND TO CONGRESS- Not later than 90 days after
receipt by the President, the President shall--
`(A) make the report public; and
`(B) transmit to the Committee on Agriculture of the House of
Representatives and the Committee on Agriculture, Nutrition, and Forestry
of the Senate a copy of the report and a statement of the President
containing recommendations for implementing the report.
`(3) PUBLICATION AND DISTRIBUTION-
`(A) IN GENERAL- The Conference shall publish and distribute the
report described in paragraph (1).
`(B) MANDATORY DISTRIBUTION- The Conference shall provide a copy of a
report published under subparagraph (A), at no cost, to--
`(i) each Federal depository library; and
`(ii) on request, each State, tribal, and local elected official in
a rural area of the United States.
`(e) FUNDING- Not later than 180 days after the establishment of the
National Board, the National Board shall transfer not more than $2,000,000 to
the Office of the President to carry out this section, to remain available
until expended.'.
SEC. 6031. 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 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) USE OF FUNDS- Subject to subsection (c), the Secretary of Agriculture
shall use funds made available under subsection (d) to provide funds for
applications that are pending on the date of enactment of this Act for--
(1) water or waste disposal grants or direct loans under paragraph (1)
or (2) of section 306(a) of the Consolidated Farm and Rural Development Act
(7 U.S.C. 1926(a)); and
(2) emergency community water assistance grants under section 306A of
that Act (7 U.S.C. 1926a).
(1) APPROPRIATED AMOUNTS- Funds made available under this section shall
be available to the Secretary to provide funds for applications for loans
and grants described in subsection (b) that are pending on the date of
enactment of this Act only to the extent that funds for the loans and grants
appropriated in the annual appropriations Act for fiscal year 2002 have been
exhausted.
(2) PROGRAM REQUIREMENTS- The Secretary may use funds made available
under this section to provide funds for a pending application for a loan or
grant described in subsection (b) only if the Secretary processes, reviews,
and approves the application in accordance with regulations in effect on the
date of enactment of this Act.
(3) PRIORITY- In providing funding under this section for pending
applications for loans or grants described in subsection (b), the Secretary
shall provide funding in the following order of priority (until funds made
available under this section are exhausted):
(A) Pending applications for water systems.
(B) Pending applications for waste disposal systems.
(d) FUNDING- Notwithstanding any other provision of law, of the funds of
the Commodity Credit Corporation, the Secretary shall use $360,000,000 to
carry out this section, to remain available until expended.
Subtitle B--Rural Electrification Act of 1936
SEC. 6101. 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 to make
loans for any electrification or telephone purpose eligible for assistance
under this Act, including section 4 or 201 or to refinance bonds or notes
issued for such purposes.
`(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 would not be investment
grade quality without a guarantee; or
`(C) the lender has not provided to the Secretary a list of loan
amounts approved by the lender that the lender certifies are for eligible
purposes 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 to 5 per
year.
`(3) DEPARTMENT OPINION- On the timely request of a 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, 2007.'.
(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. 6102. EXPANSION OF 911 ACCESS.
Title III of the Rural Electrification Act of 1936 (7 U.S.C. 931 et seq.)
is amended by adding at the end 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
borrowers of loans made by the Rural Utilities Service, 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 or improve 911 access
and integrated emergency communications systems in rural areas.
`(b) 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 2007.'.
SEC. 6103. ENHANCEMENT OF ACCESS TO BROADBAND SERVICE IN RURAL AREAS.
(a) IN GENERAL- 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 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, and 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) LOANS AND LOAN GUARANTEES-
`(1) IN GENERAL- The Secretary shall make or guarantee loans to eligible
entities described in subsection (d) to provide funds for the construction,
improvement, or acquisition of facilities and equipment for the provision of
broadband service in eligible rural communities.
`(2) PRIORITY- In making or guaranteeing loans under paragraph (1), the
Secretary shall give priority to eligible rural communities in which
broadband service is not available to residential customers.
`(1) IN GENERAL- To be eligible to obtain a loan or loan guarantee under
this section, an entity shall--
`(A) have the ability to furnish, improve, or extend a broadband
service to an eligible rural community; and
`(B) submit to the Secretary a proposal for a project that meets the
requirements of this section.
`(2) STATE AND LOCAL GOVERNMENTS- A State or local government (including
any agency, subdivision, or instrumentality thereof (including consortia
thereof)) shall be eligible for a loan or loan guarantee under this section
to provide broadband services to an eligible rural community only if, not
later than 90 days after the Administrator has promulgated regulations to
carry out this section, no other eligible entity is already offering, or has
committed to offer, broadband services to the eligible rural
community.
`(3) SUBSCRIBER LINES- An entity shall not be eligible to obtain a loan
or loan guarantee under this section if the entity serves more than 2
percent of the telephone subscriber lines installed in the aggregate in the
United States.
`(e) 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).
`(f) TECHNOLOGICAL NEUTRALITY- For purposes of determining whether or not
to make a loan or loan guarantee for a project under this section, the
Secretary shall use criteria that are technologically neutral.
`(g) TERMS AND CONDITIONS FOR LOANS AND LOAN GUARANTEES- Notwithstanding
any other provision of law, a loan or loan guarantee under subsection (c)
shall--
`(1) bear interest at an annual rate of, as determined by the
Secretary--
`(A) in the case of a direct loan--
`(i) the cost of borrowing to the Department of the Treasury for
obligations of comparable maturity; or
`(B) in the case of a guaranteed loan, the current applicable market
rate for a loan of comparable maturity; and
`(2) 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.
`(h) 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 or guaranteed 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.
`(i) REPORTS- Not later than 1 year after the date of enactment of this
section, and biennially thereafter, the Administrator shall submit to Congress
a report that--
`(1) describes how the Administrator determines under subsection (a)(1)
that a service enables a subscriber to originate and receive high-quality
voice, data, graphics, and video; and
`(2) provides a detailed list of services that have been granted
assistance under this section.
`(1) IN GENERAL- Notwithstanding any other provision of law, of the
funds of the Commodity Credit Corporation, the Secretary shall make
available to carry out this section--
`(A) $20,000,000 for each of fiscal years 2002 through 2005, to remain
available until expended; and
`(B) $10,000,000 for each of fiscal years 2006 and 2007, to remain
available until expended.
`(A) IN GENERAL- The Secretary shall be entitled to receive, shall
accept, and shall use to carry out this section, without further
appropriation any funds made available under section 1011(a)(2)(B) of the
Launching Our Communities' Access to Local Television Act of 2000 (47
U.S.C. 1109(a)(2)(B)).
`(B) USE OF TELEVISION FUNDS- The Secretary shall use any funds
received under subparagraph (A) in equal amounts for each remaining fiscal
year on receipt of the funds (including the fiscal year of receipt)
through fiscal year 2007.
`(3) AUTHORIZATION OF APPROPRIATIONS- In addition to funds otherwise
made available under this subsection, there are authorized to be
appropriated such sums as necessary to carry out this section for each of
fiscal years 2003 through 2007.
`(4) ALLOCATION OF FUNDS-
`(A) IN GENERAL- From amounts made available for each fiscal year
under this subsection, the Secretary shall--
`(i) establish a national reserve for 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 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 latest 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
loans and loan guarantees under this section to eligible entities in any
State, as determined by the Secretary.
`(k) TERMINATION OF AUTHORITY- No loan or loan guarantee may be made under
this section after September 30, 2007.'.
(1) IN GENERAL- Not later than 180 days after the date of enactment of
this Act, the Secretary of Agriculture shall promulgate such regulations as
are necessary to implement the amendment made by subsection (a).
(2) PROCEDURE- The promulgation of the regulations shall be made without
regard to--
(A) the notice and comment provisions of section 553 of title 5,
United States Code;
(B) 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
(C) chapter 35 of title 44, United States Code (commonly known as the
`Paperwork Reduction Act').
(3) CONGRESSIONAL REVIEW OF AGENCY RULEMAKING- In carrying out this
subsection, the Secretary shall use the authority provided under section 808
of title 5, United States Code.
Subtitle C--Food, Agriculture, Conservation, and Trade Act of
1990
SEC. 6201. 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.) and any other law that prescribes procedures
for procurement, use, and disposal of property by a Federal agency, 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 best value to the Federal Government.
(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 in an account in the Treasury, and shall remain
available to the Secretary until expended, without further appropriation, to
pay--
(A) any claims against, 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) Section 5315 of title 5, United States Code, is amended by striking
`Executive Director of the Alternative Agricultural Research and
Commercialization Corporation'.
(2) Section 730 of the Federal Agriculture Improvement and Reform Act of
1996 (7 U.S.C. 5902 note; Public Law 104-127) is repealed.
(3) Section 211(b) of the Department of Agriculture Reorganization Act
of 1994 (7 U.S.C. 6911(b)) is amended by striking paragraph (5).
(4) Section 404(d) of the Agricultural Research, Extension, and
Education Reform Act of 1998 (7 U.S.C. 7624(d)) is amended--
(A) by striking paragraph (2); and
(B) by redesignating paragraphs (3) and (4) as paragraphs (2) and (3),
respectively.
(5) The Herger-Feinstein Quincy Library Group Forest Recovery Act (16
U.S.C. 2104; Public Law 105-277; 112 Stat. 2681-305) is amended by striking
subsection (m).
(6) Section 9101(3) of title 31, United States Code, is amended by
striking subparagraph (Q).
SEC. 6202. RURAL ELECTRONIC COMMERCE EXTENSION PROGRAM.
Subtitle H of title XVI of the Food, Agriculture, Conservation, and Trade
Act of 1990 is amended by inserting after section 1669 (7 U.S.C. 5922) 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 own 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 expand and enhance electronic commerce practices
and technology to be used by small businesses and microenterprises in rural
areas.
`(1) IN GENERAL- The Secretary shall carry out the program established
under subsection (b) by making--
`(A) grants to each of the development centers; and
`(B) competitive grants to land-grant colleges and universities (or
consortia of land-grant colleges and universities) and to colleges and
universities (including community colleges) with agricultural or rural
development programs--
`(i) to develop and facilitate 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.
`(2) ELIGIBILITY- The selection criteria established for grants awarded
under paragraph (1)(B) shall include--
`(A) 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 businesses and
microenterprises;
`(B) the extent and geographic diversity of the area served by the
proposed project or activity under the extension program;
`(C) in the case of a land-grant college or university, the extent of
participation of the land-grant college or university in the extension
program (including any economic benefits that would result from that
participation);
`(D) 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
`(E) the extent of participation of low-income and minority businesses
or microenterprises in a proposed project or activity under the extension
program.
`(A) IN GENERAL- As a condition of the receipt of funds under this
section, a development center or grant applicant shall agree to obtain
from non-Federal sources (including State, local, nonprofit, or private
sector sources) contributions of an amount equal to 50 percent of the
grant amount.
`(B) FORM- The non-Federal share required under subparagraph (A) may
be provided in the form of in-kind contributions.
`(C) EXCEPTION- The non-Federal share required under subparagraph (A)
may be reduced to 25 percent if the grant recipient serves low-income or
minority-owned businesses or microenterprises, as determined by the
Secretary.
`(d) 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;
and
`(e) AUTHORIZATION OF APPROPRIATIONS- There is authorized to be
appropriated to carry out this section $60,000,000 for each of fiscal years
2002 through 2007, of which not less than 1/3 of the amount made available for
each fiscal year shall be used to carry out activities under subsection
(c)(1)(A).'.
SEC. 6203. 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 `2007'.
(b) CONFORMING AMENDMENT- Section 1(b) of Public Law 102-551 (7 U.S.C.
950aaa note) is amended by striking `1997' and inserting `2007'.
Subtitle D--SEARCH Grants for Small Communities
SEC. 6301. DEFINITIONS.
(1) COUNCIL- The term `council' means an independent citizens' council
established by a State rural development director under section
6302(c).
(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 applicable 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 State rural development director, in coordination with the
environmental protection director of the State.
(4) SEARCH GRANT- The term `SEARCH grant' means a grant awarded under
section 6302(f).
(5) SECRETARY- The term `Secretary' means the Secretary of
Agriculture.
(6) SMALL COMMUNITY- The term `small community' means an incorporated or
unincorporated rural community with a population of 2,500 inhabitants or
less.
(7) STATE- The term `State' has the meaning given the term in section
381A of the Consolidated Farm and Rural Development Act (7 U.S.C.
2009).
SEC. 6302. SEARCH GRANT PROGRAM.
(a) IN GENERAL- The Secretary, in coordination with the Administrator of
the Environmental Protection Agency, may establish the SEARCH grant
program.
(b) ALLOCATION TO STATE RURAL DEVELOPMENT DIRECTORS-
(1) IN GENERAL- Subject to paragraph (2) and section 6304(a)(2), not
later than 60 days after the date on which the Director of the Office of
Management and Budget apportions any amounts made available under this
subtitle for any of fiscal years 2002 through 2007, the Secretary, on
request of a State rural development director (in coordination with the
environmental protection director of the State), shall allocate to the State
rural development director an amount not to exceed $1,000,000, to be used by
the State rural development director to award SEARCH grants under subsection
(d).
(2) GRANTS TO STATES- The total amount of funds allocated to State rural
development directors in all States other than Alaska, Hawaii, or the 48
contiguous States for a fiscal year under this subsection shall not exceed
$1,000,000.
(c) INDEPENDENT CITIZENS' COUNCIL-
(1) ESTABLISHMENT- The State rural development director of a State shall
establish an independent citizens' council to carry out the duties described
in this section.
(A) IN GENERAL- A council shall be composed of 9 members, appointed by
the State rural development director, in coordination with the
environmental protection director of the State.
(B) REPRESENTATION; RESIDENCE- Each member of a council
shall--
(i) represent an individual region of the State, as determined by
the State rural development director; and
(ii) reside in a small community in the State.
(d) 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--
(1) needs funds to carry out initial feasibility or environmental
studies as required by Federal or State law before applying to traditional
funding sources; and
(2) demonstrates that the small community has been unable to obtain
sufficient funding from traditional funding sources.
(e) APPLICATIONS- To be eligible to receive a SEARCH grant, a small
community in a State shall submit to the State rural development director of
the State an application that includes--
(1) a description of the proposed environmental project (including an
explanation of how the project would assist the small community in complying
with a Federal or State environmental law (including a regulation);
(2) an explanation of why the project is important to the small
community;
(3) a description of all actions taken with respect to the project as of
the date of the application, including any attempt to secure funding;
and
(4) a description of demonstrated need for funding for the
project.
(1) IN GENERAL- Not later than May 1 of each fiscal year, a State rural
development director, in coordination with the council and the environmental
protection director of the State, shall--
(A) review all applications received by the State rural development
director under subsection (e); and
(B) award SEARCH grants to small communities based on--
(i) an evaluation of whether the proposed project meets the
eligibility criteria under subsection (d); and
(ii) the content of the application.
(2) ADMINISTRATION- In awarding a SEARCH grant, a State rural
development director--
(A) shall award the funds for any recommended environmental project in
a timely and expeditious manner; and
(B) shall not award a SEARCH grant to a grantee or project in
violation of any Federal or State law (including a regulation).
(3) MATCHING REQUIREMENT- A small community that receives a SEARCH grant
under this section may be required to provide matching funds.
(1) IN GENERAL- If, for any fiscal year, any unexpended funds remain
after SEARCH grants are awarded by a State rural development director under
subsection (f), the State rural development director, in coordination with
the environmental protection director of the State, may repeat the
application and review process so that any remaining funds are recommended
for award, and awarded, not later than July 30 of the fiscal year.
(A) IN GENERAL- Any unexpended funds that are not awarded under
subsection (f) or paragraph (1) shall be retained by the State rural
development director for award during the following fiscal year.
(B) LIMITATION- A State SEARCH account that accumulates a balance of
unexpended funds described in subparagraph (A) in excess of $2,000,000
shall be ineligible to receive additional funds for SEARCH grants until
such time as the State rural development director awards grants in the
amount of the excess.
SEC. 6303. REPORT.
Not later than 30 days after the end of the first fiscal year for which
SEARCH grants are awarded, and annually thereafter, the Secretary shall submit
to the Committee on Energy and Commerce and the Committee on Agriculture of
the House of Representatives and the Committee on Agriculture, Nutrition, and
Forestry of the Senate a report that--
(1) describes the 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 previous fiscal
year.
SEC. 6304. FUNDING.
(a) ALLOCATION TO STATE RURAL DEVELOPMENT DIRECTORS-
(1) AUTHORIZATION OF APPROPRIATIONS- There is authorized to be
appropriated to carry out section 6302(b) $51,000,000 for each of fiscal
years 2002 through 2007, of which not to exceed $1,000,000 shall be used to
make grants under section 6302(b)(2).
(2) ACTUAL APPROPRIATION- If funds to carry out section 6302(b) are made
available for a fiscal year in an amount that is less than the amount
authorized under paragraph (1) for the fiscal year, the Secretary shall
divide the appropriated funds for the fiscal year equally among the 50
States.
(b) OTHER EXPENSES- There are authorized to be appropriated such sums as
are necessary to carry out this subtitle (other than section 6302(b)).
Subtitle E--Miscellaneous
SEC. 6401. VALUE-ADDED AGRICULTURAL PRODUCT MARKET DEVELOPMENT GRANTS.
(a) IN GENERAL- 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-
`(1) IN GENERAL- The term `value-added agricultural product' means any
agricultural commodity or product that--
`(A)(i) has undergone a change in physical state;
`(ii) was produced in a manner that enhances the value of the
agricultural commodity or product, as demonstrated through a business plan
that shows the enhanced value, as determined by the Secretary; or
`(iii) is physically segregated in a manner that results in the
enhancement of the value of the agricultural commodity or product;
and
`(B) as a result of the change in physical state or the manner in
which the agricultural commodity or product was produced or
segregated--
`(i) the customer base for the agricultural commodity or product has
been expanded; and
`(ii) a greater portion of the revenue derived from the marketing,
processing, or physical segregation of the agricultural commodity or
product is available to the producer of the commodity or
product.
`(2) INCLUSION- The term `value-added agricultural product' includes
farm- or ranch-based renewable energy.
`(1) IN GENERAL- From amounts made available under paragraph (4), the
Secretary shall 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) in developing a business plan for viable marketing
opportunities for the value-added agricultural product; or
`(ii) in developing strategies that are intended to create marketing
opportunities for the producer; and
`(B) to an eligible agricultural producer group, farmer or rancher
cooperative, or majority-controlled producer-based business venture (as
determined by the Secretary) to assist the entity--
`(i) in developing a business plan for viable marketing
opportunities in emerging markets for a value-added agricultural
product; or
`(ii) in developing strategies that are intended to create marketing
opportunities in emerging markets for the value-added agricultural
product.
`(A) IN GENERAL- The total amount provided under this subsection to a
grant recipient shall not exceed $500,000.
`(B) MAJORITY-CONTROLLED PRODUCER-BASED BUSINESS VENTURES- The amount
of grants provided to majority-controlled producer-based business ventures
under paragraph (1)(B) for a fiscal year may not exceed 10 percent of the
amount of funds that are used to make grants for the fiscal year under
this subsection.
`(3) GRANTEE STRATEGIES- A grantee under paragraph (1) 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.
`(4) FUNDING- Not later than 30 days after the date of enactment of this
paragraph, on October 1, 2002, and on each October 1 thereafter through
October 1, 2006, of the funds of the Commodity Credit Corporation, the
Secretary shall make available to carry out this subsection $40,000,000, to
remain available until expended.';
(3) in subsection (c)(1) (as redesignated by paragraph (1))--
(A) by striking `subsection (a)(2)' and inserting `subsection
(b)(2)';
(B) by striking `$5,000,000' and inserting `5 percent'; and
(C) by striking `subsection (a)' and inserting `subsection (b)';
and
(4) in subsection (d) (as redesignated by paragraph (1)), by striking
`subsections (a) and (b)' and inserting `subsections (b) and (c)'.
(1) IN GENERAL- Except as provided in paragraph (2), the amendments made
by subsection (a) apply beginning on October 1, 2002.
(2) FUNDING- Funds made available under section 231(b)(4)(A)(i) of the
Agricultural Risk Protection Act of 2000 (as amended by subsection (a)(2))
shall be made available not later than 30 days after the date of enactment
of this Act.
SEC. 6402. AGRICULTURE INNOVATION CENTER DEMONSTRATION PROGRAM.
(a) PURPOSE- The purpose of this section is to direct the Secretary of
Agriculture to establish a demonstration program under which agricultural
producers are provided--
(1) technical assistance, consisting of engineering services, applied
research, scale production, and similar services, to enable the agricultural
producers to establish businesses to produce value-added agricultural
commodities or products;
(2) assistance in marketing, market development, and business planning;
and
(3) organizational, outreach, and development assistance to increase the
viability, growth, and sustainability of businesses that produce value-added
agricultural commodities or products.
(b) DEFINITIONS- In this section:
(1) PROGRAM- The term `Program' means the Agriculture Innovation Center
Demonstration Program established under subsection (c).
(2) SECRETARY- The term `Secretary' means the Secretary of
Agriculture.
(c) ESTABLISHMENT OF PROGRAM- The Secretary shall establish a
demonstration program, to be known as the `Agriculture Innovation Center
Demonstration Program' under which the Secretary shall--
(1) make grants to assist eligible entities in establishing Agriculture
Innovation Centers to enable agricultural producers to obtain the assistance
described in subsection (a); and
(2) provide assistance to eligible entities in establishing Agriculture
Innovation Centers through the research and technical services of the
Department of Agriculture.
(d) ELIGIBILITY REQUIREMENTS-
(1) IN GENERAL- An entity shall be eligible for a grant and assistance
described in subsection (c) to establish an Agriculture Innovation Center
if--
(i) has provided services similar to the services described in
subsection (a); or
(ii) demonstrates the capability of providing such
services;
(B) the application of the entity for the grant and assistance
includes a plan, in accordance with regulations promulgated by the
Secretary, that outlines--
(i) the support for the entity in the agricultural
community;
(ii) the technical and other expertise of the entity;
and
(iii) the goals of the entity for increasing and improving the
ability of local agricultural producers to develop markets and processes
for value-added agricultural commodities or products;
(C) the entity demonstrates that adequate resources (in cash or in
kind) are available, or have been committed to be made available, to the
entity, to increase and improve the ability of local agricultural
producers to develop markets and processes for value-added agricultural
commodities or products; and
(D) the Agriculture Innovation Center of the entity has a board of
directors established in accordance with paragraph (2).
(2) BOARD OF DIRECTORS- Each Agriculture Innovation Center of an
eligible entity shall have a board of directors composed of representatives
of each of the following groups:
(A) The 2 general agricultural organizations with the greatest number
of members in the State in which the eligible entity is located.
(B) The department of agriculture, or similar State department or
agency, of the State in which the eligible entity is located.
(C) Entities representing the 4 highest grossing commodities produced
in the State, determined on the basis of annual gross cash sales.
(e) GRANTS AND ASSISTANCE-
(1) IN GENERAL- Subject to subsection (i), under the Program, the
Secretary shall make, on a competitive basis, annual grants to eligible
entities.
(2) MAXIMUM AMOUNT OF GRANTS- A grant under paragraph (1) shall be in an
amount that does not exceed the lesser of--
(B) twice the dollar amount of the resources (in cash or in kind) that
the eligible entity demonstrates are available, or have been committed to
be made available, to the eligible entity in accordance with subsection
(d)(1)(C).
(3) MAXIMUM NUMBER OF GRANTS-
(A) FIRST FISCAL YEAR OF PROGRAM- In the first fiscal year of the
Program, the Secretary shall make grants to not more than 5 eligible
entities.
(B) SECOND FISCAL YEAR OF PROGRAM- In the second fiscal year of the
Program, the Secretary may make grants to--
(i) the eligible entities to which grants were made under
subparagraph (A); and
(ii) not more than 10 additional eligible entities.
(A) IN GENERAL- Subject to subparagraph (B), in the first 3 fiscal
years of the Program, the Secretary shall not make a grant under the
Program to more than 1 entity in any 1 State.
(B) COLLABORATION- Nothing in subparagraph (A) precludes a recipient
of a grant under the Program from collaborating with any other institution
with respect to activities conducted using the grant.
(f) USE OF FUNDS- An eligible entity to which a grant is made under the
Program may use the grant only for the following purposes (but only to the
extent that the use is not described in section 231(d) of the Agricultural
Risk Protection Act of 2000 (7 U.S.C. 1621 note; Public Law 106-224)):
(3) Hiring of employees, at the discretion of the board of directors of
the Agriculture Innovation Center of the eligible entity.
(4) The making of matching grants, each of which shall be in an amount
not to exceed $5,000, to agricultural producers, except that the aggregate
amount of all such matching grants made by the eligible entity shall be not
more than $50,000.
(6) Any other related cost, as determined by the Secretary.
(g) RESEARCH ON EFFECTS ON THE AGRICULTURAL SECTOR-
(1) IN GENERAL- Of the amount made available under subsection (i) for
each fiscal year, the Secretary shall use $300,000 to support research at a
university concerning the effects of projects for value-added agricultural
commodities or products on agricultural producers and the commodity
markets.
(2) RESEARCH ELEMENTS- Research under paragraph (1) shall systematically
examine, using linked, long-term, global projections of the agricultural
sector, the potential effects of projects described in subparagraph (A)
on--
(A) demand for agricultural commodities;
(D) Federal outlays on commodity programs.
(1) IN GENERAL- Not later than 3 years after the date on which the last
of the first 10 grants is made under the Program, 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--
(A) the effectiveness of the Program in improving and expanding the
production of value-added agricultural commodities or products;
and
(B) the effects of the Program on the economic viability of
agricultural producers.
(2) REQUIRED ELEMENTS- The report under paragraph (1) shall--
(A) include a description of the best practices and innovations found
at each of the Agriculture Innovation Centers established under the
Program; and
(B) specify the number and type of activities assisted, and the type
of assistance provided, under the Program.
(i) FUNDING- Of the amount made available under section 231(a)(1) of the
Agricultural Risk Protection Act of 2000 (7 U.S.C. 1621 note; Public Law
106-224) for each fiscal year, the Secretary shall use to carry out this
section--
(1) not less than $3,000,000 for fiscal year 2002; and
(2) not less than $6,000,000 for each of fiscal years 2003 and
2004.
SEC. 6403. FUND FOR RURAL AMERICA.
(a) IN GENERAL- Section 793 of the Federal Agriculture Improvement and
Reform Act of 1996 (7 U.S.C. 2204f) is repealed.
(b) CONFORMING AMENDMENT- Section 2(b)(8)(B) of the Competitive, Special,
and Facilities Research Grant Act (7 U.S.C. 450i(b)(8)(B)) is amended in the
second sentence by striking `smaller college or university (as described in
section 793(c)(2)(ii) of the Federal Agriculture Improvement and Reform Act of
1996 (7 U.S.C. 2204f(c)(2)(ii))' and inserting `college, university, or
research foundation maintained by a college or university that ranks in the
lowest 1/3 of such colleges, universities, and research foundations on the
basis of Federal research funds received'.
SEC. 6404. RURAL LOCAL TELEVISION BROADCAST SIGNAL LOAN GUARANTEES.
(a) IN GENERAL- Section 1011(a) of the Launching Our Communities' Access
to Local Television Act of 2000 (47 U.S.C. 1109(a)) is amended--
(1) by striking `For' and inserting the following:
`(1) AUTHORIZATION OF APPROPRIATIONS- For'; and
(2) by adding at the end the following:
`(2) COMMODITY CREDIT CORPORATION FUNDS-
`(A) IN GENERAL- Notwithstanding any other provision of law, subject
to subparagraph (B), in addition to amounts made available under paragraph
(1), of the funds of the Commodity Credit Corporation, the Secretary of
Agriculture shall make available for loan guarantees to carry out this
title $80,000,000 for the period beginning on the date of enactment of
this paragraph and ending on December 31, 2006, to remain available until
expended.
`(B) BROADBAND LOANS AND LOAN GUARANTEES-
`(i) IN GENERAL- Amounts made available under subparagraph (A) that
are not obligated as of the release date described in clause (ii) shall
be available to the Secretary to make loans and loan guarantees under
section 601 of the Rural Electrification Act of 1936.
`(ii) RELEASE DATE- For purposes of clause (i), the release date is
the date that is the earlier of--
`(I) the date the Secretary determines that at least 75 percent of
the designated market areas (as defined in section 122(j) of title 17,
United States Code) not in the top 40 designated market areas
described in section 1004(e)(1)(C)(i) of the Launching Our
Communities' Access to Local Television Act of 2000 (47 U.S.C.
1103(e)(1)(C)(i)) have access to local television broadcast signals
for virtually all households (as determined by the Secretary);
or
`(C) ADVANCED APPROPRIATIONS- Subsections (c) and (h)(1)(B) of section
1004 and section 1005(n)(3)(B) shall not apply to amounts made available
under this paragraph.'.
(b) TECHNICAL AND CONFORMING AMENDMENTS-
(1) APPROVAL OF LOAN GUARANTEES- Section 1004 of the Launching Our
Communities' Access to Local Television Act of 2000 (47 U.S.C. 1103) is
amended--
(A) in subsection (b)(1)--
(i) by striking `section 5' and inserting `section 1005';
and
(ii) by striking `section 11' and inserting `section
1011';
(B) in subsection (d)(1), by striking `section 3' and inserting
`section 1003'; and
(C) in the first sentence of subsection (h)(2)(D), by striking
`section 5' and inserting `section 1005'.
(2) ADMINISTRATION OF LOAN GUARANTEES- Section 1005 of the Launching Our
Communities' Access to Local Television Act of 2000 (47 U.S.C. 1104) is
amended--
(A) in subsection (a), by striking `sections 3 and 4' and inserting
`sections 1003 and 1004';
(i) in paragraph (1)(D), by striking `section 6(a)(2)' and inserting
`section 1006(a)(2)'; and
(ii) in paragraph (3), by striking `section 4(d)(3)(B)(iii)' and
inserting `section 1004(d)(3)(B)(iii)'; and
(C) in subsection (e)(3), by striking `section 4(g)' and inserting
`section 1004(g)'.
SEC. 6405. RURAL FIREFIGHTERS AND EMERGENCY PERSONNEL GRANT PROGRAM.
(a) IN GENERAL- The Secretary of Agriculture 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.
(A) IN GENERAL- Not less than 60 percent of the amounts made available
for competitively-awarded grants under this section shall be used to
provide grants to fund partial scholarships for training of individuals at
training centers approved by the Secretary.
(B) PRIORITY- In awarding grants under this paragraph, the Secretary
shall give priority to grant applicants that provide for training within
the region (or locality) of the applicant.
(2) GRANTS FOR TRAINING CENTERS-
(A) IN GENERAL- A grant under subsection (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.
(B) LIMITATION- Not more than $750,000 shall be provided to any single
training center for any fiscal year under this paragraph.
(c) FUNDING- Of the funds of the Commodity Credit Corporation, the
Secretary shall make available to carry out this section $10,000,000 for each
of fiscal years 2003 through 2007, to remain available until expended.
SEC. 6406. SENSE OF CONGRESS ON RURAL POLICY COORDINATION.
It is the sense of Congress that the President should--
(1) appoint a Special Assistant to the President for Rural Policy;
(2) designate within each Federal agency with jurisdiction over rural
programs or activities 1 or more senior officers or employees to provide
rural policy leadership for the agency; and
(3) create an intergovernmental rural policy working group comprised
of--
(A) the Special Assistant to the President for Rural Policy, who
should serve as Chairperson; and
(B) the senior officers and employees designated under paragraph
(2).
TITLE VII--RESEARCH AND RELATED MATTERS
Subtitle A--Extensions
SEC. 7101. NATIONAL RURAL INFORMATION CENTER CLEARINGHOUSE.
Section 2381(e) of the Food, Agriculture, Conservation, and Trade Act of
1990 (7 U.S.C. 3125b(e)) is amended by striking `2002' and inserting
`2007'.
SEC. 7102. 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 `2007'.
SEC. 7103. POLICY RESEARCH CENTERS.
Section 1419A(d) of the National Agricultural Research, Extension, and
Teaching Policy Act of 1977 (7 U.S.C. 3155(d)) is amended by striking `2002'
and inserting `2007'.
SEC. 7104. 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 `2007'.
SEC. 7105. 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 `2007'.
SEC. 7106. 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 `2007'.
SEC. 7107. CONTINUING 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 by striking `2002'
and inserting `2007'.
SEC. 7108. APPROPRIATIONS FOR 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 `2007'.
SEC. 7109. GRANTS TO UPGRADE AGRICULTURAL AND FOOD SCIENCES FACILITIES AT
1890 LAND-GRANT COLLEGES, INCLUDING TUSKEGEE UNIVERSITY.
Section 1447(b) of the National Agricultural Research, Extension, and
Teaching Policy Act of 1977 (7 U.S.C. 3222b(b)) is amended by striking
`$15,000,000 for each of fiscal years 1996 through 2002' and inserting
`$25,000,000 for each of fiscal years 2002 through 2007'.
SEC. 7110. 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 `2007'.
(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. 7111. HISPANIC-SERVING INSTITUTIONS.
Section 1455(c) of the National Agricultural Research, Extension, and
Teaching Policy Act of 1977 (7 U.S.C. 3241(c)) is amended by striking `2002'
and inserting `2007'.
SEC. 7112. 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 `2007'.
SEC. 7113. UNIVERSITY RESEARCH.
Section 1463 of the National Agricultural Research, Extension, and
Teaching Policy Act of 1977 (7 U.S.C. 3311) is amended--
(1) in subsection (a), by striking `$850,000,000 for each of the fiscal
years 1991 through 2002' and inserting `such sums as may be necessary for
each of fiscal years 1991 through 2007'; and
(2) in subsection (b), by striking `$310,000,000 for each of the fiscal
years 1991 through 2002' and inserting `such sums as may be necessary for
each of fiscal years 1991 through 2007'.
SEC. 7114. EXTENSION SERVICE.
Section 1464 of the National Agricultural Research, Extension, and
Teaching Policy Act of 1977 (7 U.S.C. 3312) is amended by striking
`$420,000,000 for fiscal year 1991, $430,000,000 for fiscal year 1992,
$440,000,000 for fiscal year 1993, $450,000,000 for fiscal year 1994, and
$460,000,000 for each of fiscal years 1995 through 2002' and inserting `such
sums as may be necessary for each of fiscal years 1991 through 2007'.
SEC. 7115. 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 `2007'.
SEC. 7116. AQUACULTURE RESEARCH FACILITIES.
The first sentence of section 1477 of the National Agricultural Research,
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3324) is amended by
striking `2002' and inserting `2007'.
SEC. 7117. 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 `2007'.
SEC. 7118. NATIONAL GENETICS RESOURCES PROGRAM.
Section 1635(b) of the Food, Agriculture, Conservation, and Trade Act of
1990 (7 U.S.C. 5844(b)) is amended by striking `2002' and inserting `2007'.
SEC. 7119. HIGH-PRIORITY RESEARCH AND EXTENSION INITIATIVES.
Section 1672(h) of the Food, Agriculture, Conservation, and Trade Act of
1990 (7 U.S.C. 5925(h)) is amended by striking `2002' and inserting `2007.
SEC. 7120. 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
`2007'.
SEC. 7121. 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 `2007'.
SEC. 7122. 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
`2007'.
SEC. 7123. 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 `2007'.
SEC. 7124. BIOBASED PRODUCTS.
(a) PILOT PROJECT- Section 404(e)(2) of the Agricultural Research,
Extension, and Education Reform Act of 1998 (7 U.S.C. 7624(e)(2)) is amended
by striking `2001' and inserting `2007'.
(b) AUTHORIZATION OF APPROPRIATIONS- Section 404(h) of such Act (7 U.S.C.
7624(h)) is amended by striking `2002' and inserting `2007'.
SEC. 7125. 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 `2007'.
SEC. 7126. EQUITY IN EDUCATIONAL LAND-GRANT STATUS ACT OF 1994.
(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 `2007';
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 2007'.
SEC. 7127. 1994 INSTITUTION RESEARCH GRANTS.
Section 536(c) of the Equity in Educational Land-Grant Status Act of 1994
(7 U.S.C. 301 note) is amended by striking `2002' and inserting `2007'.
SEC. 7128. ENDOWMENT FOR 1994 INSTITUTIONS.
The first sentence of section 533(b) of the Equity in Educational
Land-Grant Status Act of 1994 (7 U.S.C. 301 note) is amended by striking
`$4,600,000' and all that follows through the period and inserting `such sums
as are necessary to carry out this section for each of fiscal years 1996
through 2007.'.
SEC. 7129. PRECISION AGRICULTURE.
Section 403(i) of the Agricultural Research, Extension, and Education
Reform Act of 1998 (7 U.S.C. 7623(i)) is amended by striking `2002' and
inserting `2007'.
SEC. 7130. 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 `2007'.
SEC. 7131. SUPPORT FOR RESEARCH REGARDING DISEASES OF WHEAT, TRITICALE, AND
BARLEY CAUSED BY FUSARIUM GRAMINEARUM OR BY TILLETIA INDICA.
Section 408(e) of the Agricultural Research, Extension, and Education
Reform Act of 1998 (7 U.S.C. 7628(e)) is amended--
(1) by striking `$5,200,000' and inserting `such sums as may be
necessary'; and
(2) by striking `2002' and inserting `2007'.
SEC. 7132. 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 `2007'.
SEC. 7133. 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 `2007'.
SEC. 7134. GRANTS FOR RESEARCH ON 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 `2007'.
SEC. 7135. AGRICULTURAL EXPERIMENT STATIONS RESEARCH FACILITIES.
Section 6(a) of the Research Facilities Act (7 U.S.C. 390d(a)) is amended
by striking `2002' and inserting `2007'.
SEC. 7136. COMPETITIVE, SPECIAL, AND FACILITIES RESEARCH GRANTS NATIONAL
RESEARCH INITIATIVE.
Section 2(b)(10) of the Competitive, Special, and Facilities Research
Grant Act (7 U.S.C. 450i(b)(10)) is amended by striking `2002' and inserting
`2007'.
SEC. 7137. FEDERAL AGRICULTURAL RESEARCH FACILITIES AUTHORIZATION OF
APPROPRIATIONS.
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 `2007'.
SEC. 7138. CRITICAL AGRICULTURAL MATERIALS RESEARCH.
Section 16(a) of the Critical Agricultural Materials Act (7 U.S.C.
178n(a)) is amended by striking `2002' and inserting `2007'.
SEC. 7139. 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 `2007'.
Subtitle B--Modifications
SEC. 7201. EQUITY IN EDUCATIONAL LAND-GRANT STATUS ACT OF 1994.
(a) AUTHORIZATION OF APPROPRIATIONS- Section 534(a)(1)(A) of the Equity in
Educational Land-Grant Status Act of 1994 (7 U.S.C. 301 note) is amended by
striking `$50,000' and inserting `$100,000'.
(b) 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, as such section
was in effect on the day preceding the date of enactment of the Carl. D.
Perkins Vocational and Applied Technology Education Amendments of 1998 (Oct.
31, 1998)) 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)))'.
(c) 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'.
(d) 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.'.
(e) REPORT RECOMMENDING CRITERIA FOR ADDITIONAL ELIGIBLE ENTITIES- Not
later than 1 year after the date of enactment of this Act, the Secretary of
Agriculture shall submit a report containing recommended criteria for
designating additional 1994 Institutions to the Committee on Agriculture of
the House of Representatives and the Committee on Agriculture, Nutrition, and
Forestry of the Senate.
SEC. 7202. CARRYOVER FOR EXPERIMENT STATIONS.
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-
`(A) IN GENERAL- 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.
`(B) REDISTRIBUTION- Federal funds that are deducted under
subparagraph (A) for a fiscal year shall be redistributed by the Secretary
in accordance with the formula set forth in section 3(c) to those States
for which no deduction under subparagraph (A) has been taken for that
fiscal year.'.
SEC. 7203. 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 2003, 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 2003, 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. 7204. CARRYOVER FOR ELIGIBLE INSTITUTIONS.
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 7203 of
this Act) is further 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-
`(i) IN GENERAL- 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.
`(ii) REDISTRIBUTION- Federal funds that are deducted under clause
(i) for a fiscal year shall be redistributed by the Secretary in
accordance with the formula set forth in subsection (b)(2)(B) to those
eligible institutions for which no deduction under clause (i) has been
taken for that fiscal year.'.
SEC. 7205. INITIATIVE FOR FUTURE AGRICULTURE AND FOOD SYSTEMS.
(a) FUNDING- Section 401(b) of the Agricultural Research, Extension, and
Education Reform Act of 1998 (7 U.S.C. 7621(b)) is amended--
(1) in paragraph (1), by striking `2002' and inserting `2001'; and
(2) by adding at the end the following:
`(3) OTHER FUNDING- Out of funds in the Commodity Credit Corporation,
the Secretary shall transfer to the Account--
`(A) on October 1, 2003, $120,000,000;
`(B) on October 1, 2004, $140,000,000;
`(C) on October 1, 2005, $160,000,000; and
`(D) on October 1, 2006, and each October 1 thereafter,
$200,000,000.'.
(2) by amending subsection (c)(1) to read as follows:
`(1) CRITICAL EMERGING AGRICULTURAL AND RURAL ISSUES- 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 and rural issues related to--
`(A) future food production;
`(B) environmental quality and natural resource management;
`(D) rural economic and business and community development policy.';
and
(3) in subsection (e)(1), by striking `small and mid-sized' and
inserting `small, mid-sized, and minority-serving'.
SEC. 7206. 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'.
SEC. 7207. AGRICULTURAL RESEARCH, EXTENSION, AND EDUCATION REFORM ACT OF
1998.
(a) 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 `, horticultural,' following
`agronomic' the second place it appears; 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.'.
(b) THOMAS JEFFERSON INITIATIVE FOR CROP DIVERSIFICATION- Section 405(a)
of the Agricultural Research, Extension, and Education Reform Act of 1998 (7
U.S.C. 7625(a)) is amended by striking `and marketing' and inserting `,
marketing, and efficient use'.
(c) COORDINATED PROGRAM OF RESEARCH, EXTENSION, AND EDUCATION TO IMPROVE
VIABILITY OF SMALL- AND MEDIUM-SIZE DAIRY, LIVESTOCK, AND POULTRY OPERATIONS-
Section 407(b)(3) of the Agricultural Research, Extension, and Education
Reform Act of 1998 (7 U.S.C. 7627(b)(3)) is amended by inserting `(including
improved use of energy inputs)' after `poultry systems that increase
efficiencies'.
(d) SUPPORT FOR RESEARCH REGARDING DISEASES OF WHEAT, TRITICALE, AND
BARLEY CAUSED BY FUSARIUM GRAMINEARUM OR BY TILLETIA INDICA-
(1) RESEARCH GRANT AUTHORIZED- Section 408(a) of the Agricultural
Research, Extension, and Education Reform Act of 1998 (7 U.S.C. 7628(a)) is
amended to read as follows:
`(a) RESEARCH GRANT AUTHORIZED- The Secretary of Agriculture may make
grants to consortia of land-grant colleges and universities to enhance the
ability of the consortia to carry out multi-State research projects aimed at
understanding and combating diseases of wheat, triticale, and barley caused by
Fusarium graminearum and related fungi (referred to in this section as `wheat
scab') or by Tilletia indica and related fungi (referred to in this section as
`Karnal bunt').'.
(2) RESEARCH COMPONENTS- Section 408(b) of such Act (7 U.S.C. 7628(b))
is amended--
(A) in paragraph (1), by inserting `or of Karnal bunt,' after
`epidemiology of wheat scab';
(B) in paragraph (1), by inserting `, triticale,' after `occurring in
wheat';
(C) in paragraph (2), by inserting `or Karnal bunt' after `wheat
scab';
(D) in paragraph (3)(A), by striking `and barley for the presence of'
and inserting `, triticale, and barley for the presence of Karnal bunt or
of';
(E) in paragraph (3)(B), by striking `and barley infected with wheat
scab' and inserting `, triticale, and barley infected with wheat scab or
with Karnal bunt';
(F) in paragraph (3)(C), by inserting `wheat scab' after `to
render';
(G) in paragraph (4), by striking `and barley to wheat scab' and
inserting `, triticale, and barley to wheat scab and to Karnal bunt';
and
(i) by inserting `and Karnal bunt' after `wheat scab';
and
(ii) by inserting `, triticale,' after `resistant
wheat'.
(3) COMMUNICATIONS NETWORKS- Section 408(c) of such Act (7 U.S.C.
7628(c)) is amended by inserting `or Karnal bunt' after `wheat scab'.
(4) TECHNICAL AMENDMENTS- (A) The section heading for section 408 of
such Act is amended by striking `and barley caused by fusarium graminearum'
and inserting `, triticale, and barley caused by fusarium graminearum or by
tilletia indica'.
(B) The table of sections for such Act is amended by striking `and
barley caused by fusarium graminearum' in the item relating to section 408
and inserting `, triticale, and barley caused by Fusarium graminearum or by
Tilletia indica'.
(e) PROGRAM TO CONTROL JOHNE'S DISEASE- 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 new section:
`SEC. 409. BOVINE JOHNE'S DISEASE CONTROL PROGRAM.
`(a) ESTABLISHMENT- The Secretary of Agriculture, 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 is authorized to be
appropriated to the Secretary such sums as may be necessary to carry out this
section for each of fiscal years 2003 through 2007.'.
SEC. 7208. FOOD, AGRICULTURE, CONSERVATION, AND TRADE ACT OF 1990.
(a) AGRICULTURAL GENOME INITIATIVE- Section 1671(b) of the Food,
Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 5924(b)) is
amended--
(1) in paragraph (3), by inserting `pathogens and' before `diseases
causing economic hardship';
(2) in paragraph (6), by striking `and' at the end;
(3) by redesignating paragraph (7) as paragraph (8); and
(4) by inserting after paragraph (6) the following new paragraph:
`(7) reducing the economic impact of plant pathogens on commercially
important crop plants; and'.
(b) HIGH-PRIORITY RESEARCH AND EXTENSION INITIATIVES- Section 1672(e) of
the Food, Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 5925) is
amended by adding at the end the following new paragraphs:
`(25) GENETICALLY MODIFIED AGRICULTURE PRODUCTS (GMAP) RESEARCH-
Research grants may be made under this section for the purposes of providing
unbiased, science-based evaluation of the risks and benefits to the public
and the environment of specific genetically modified plant and animal
products. Grants may be used to form interdisciplinary teams to review and
conduct research on scientific, social, economic, and ethical issues during
the review process, to answer questions raised by the release of new
genetically modified agriculture products, to conduct fundamental studies on
the health and environmental safety of genetically modified agriculture
products (including quantitative risk assessment, the effect of specific
genetically modified agriculture products on human health, and gene flow
studies), to communicate the risk of genetically modified agriculture
products through extension and education programs, and to engage the public
and industry in relevant issues.
`(26) WIND EROSION RESEARCH AND EXTENSION- Research and extension grants
may be made under this section for the purpose of validating wind erosion
models.
`(27) CROP LOSS RESEARCH AND EXTENSION- Research and extension grants
may be made under this section for the purpose of validating crop loss
models.
`(28) LAND USE MANAGEMENT RESEARCH AND EXTENSION- Research and extension
grants may be made under this section for the purposes of evaluating the
environmental benefits of land use management tools such as those provided
in the Farmland Protection Program.
`(29) WATER AND AIR QUALITY RESEARCH AND EXTENSION- Research and
extension grants may be made under this section for the purpose of better
understanding agricultural impacts to air and water quality and means to
address them.
`(30) REVENUE AND INSURANCE TOOLS RESEARCH AND EXTENSION- Research and
extension grants may be made under this section for the purposes of better
understanding the impact of revenue and insurance tools on farm
income.
`(31) AGROTOURISM RESEARCH AND EXTENSION- Research and extension grants
may be made under this section for the purpose of better understanding the
economic, environmental, and food systems impacts of agrotourism.
`(32) HARVESTING PRODUCTIVITY FOR FRUITS AND VEGETABLES- Research and
extension grants may be made under this section for the purpose of improving
harvesting productivity for fruits and vegetables (including citrus),
including the development of mechanical harvesting technologies and
effective, economical, and safe abscission compounds.
`(33) NITROGEN-FIXATION BY PLANTS- Research and extension grants may be
made under this section for the purpose of enhancing the nitrogen-fixing
ability and efficiency of legumes, developing new varieties of legumes that
fix nitrogen more efficiently, and developing new varieties of other
commercially important crops that potentially are able to fix
nitrogen.
`(34) AGRICULTURAL MARKETING- Extension grants may be made under this
section for the purpose of providing education materials, information, and
outreach programs regarding commodity and livestock marketing strategies for
agricultural producers and for cooperatives and other marketers of any
agricultural commodity, including livestock.
`(35) ENVIRONMENT AND PRIVATE LANDS RESEARCH AND EXTENSION- Research and
extension grants may be made under this section for the purpose of
researching the use of computer models to aid in assessment of best
management practices on a watershed basis, working with government,
industry, and private landowners to help craft industry-led solutions to
identified environmental issues, researching and monitoring water, air, or
soil environmental quality to aid in the development of new approaches to
local environmental concerns, and working with local, State, and federal
officials to help craft effective environmental solutions that respect
private property rights and agricultural production realities.
`(36) LIVESTOCK DISEASE RESEARCH AND EXTENSION- Research and extension
grants may be made under this section for the purpose of identifying
possible livestock disease threats, educating the public regarding livestock
disease threats, training persons to deal with such threats, and conducting
related research.
`(37) PLANT GENE EXPRESSION- Research grants may be made under this
section for the purpose of plant gene expression research to accelerate the
application of basic plant genomic science to the development and testing of
new varieties of enhanced food crops, crops that can be used as renewable
energy sources, and other alternative uses of agricultural crops.
`(38) ANIMAL INFECTIOUS DISEASES RESEARCH- Research and extension grants
may be made under this section for the purpose of developing prevention and
control methodologies for animal infectious diseases (including evaluation
under field conditions in countries in which an animal disease occurs) such
as laboratory tests for quicker detection of infected animals and presence
of disease, prevention strategies (including vaccination programs), and
rapid diagnostic techniques for animal disease agents considered to be risks
for agricultural bioterrorism attack.
`(39) 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.
`(40) INTEGRATED PEST MANAGEMENT- Research and extension grants may be
made under this section to coordinate and improve research, education, and
outreach on, and implementation on farms of, integrated pest
management.
`(41) BEEF CATTLE GENETICS- Research and extension grants for beef
cattle genetics evaluation research may be made under this section to
consortia of institutions of higher education that have expertise in beef
cattle genetic evaluation research and technology and that 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.
`(42) DAIRY PIPELINE CLEANER- Research and extension grants may be made
under this section for the purpose of preventing and eliminating the dangers
of dairy pipeline cleaner, including development of safer packaging and
transfer mechanisms, outlining accident causes and potential prevention
measures, and other means of improving efforts to prevent ingestion of dairy
pipeline cleaner.
`(43) DEVELOPMENT OF PUBLICLY HELD PLANTS AND ANIMAL VARIETIES- Research
and extension grants may be made under this section for the purpose of
development of publicly held plants and animal varieties (including
germplasm for identity-preserved markets) and genetic resource conservation
activities.
`(44) SUGARCANE GENETICS- Research grants may be made under this section
for the purpose of maintaining acceptable yields under reduced production
inputs, implementing marker-assisted breeding strategies and other basic
plant genomic technologies to screen for improved plant resistance to
diseases, weeds, and insects toward minimizing pesticide use, enhancing
food, fiber and energy production, and developing varieties for maximum
performance under prevailing conditions, including management for improved
soil and water conservation.'.
(c) ASSISTIVE TECHNOLOGY PROGRAM FOR FARMERS WITH DISABILITIES- Section
1680(a) of the Food, Agriculture, Conservation, and Trade Act of 1990 (7
U.S.C. 5933(a)) is amended by adding at the end the following new
paragraph:
`(6) CONSIDERATION FOR GRANTS FOR NEW PROGRAMS- For each fiscal year
that amounts are made available for grants under this subsection, the
Secretary may make grants in a manner that ensures that eligible entities
who apply for grants, but have not previously received a grant under this
subsection, are given full consideration.'.
SEC. 7209. NATIONAL AGRICULTURAL RESEARCH, EXTENSION, AND TEACHING POLICY
ACT OF 1977.
(a) NATIONAL AGRICULTURAL RESEARCH, EXTENSION, EDUCATION, AND ECONOMIC
ADVISORY BOARD- Section 1408 of the National Agricultural Research, Extension,
and Teaching Policy Act of 1977 (7 U.S.C. 3123) is amended--
(1) in subsection (b)(1), by striking `30 members' and inserting `31
members';
(2) in subsection (b)(3)--
(A) by redesignating subparagraphs (R) through (DD) as subparagraphs
(S) through (EE), respectively; and
(B) by inserting after subparagraph (Q) the following new
subparagraph:
`(R) 1 member representing a non-land grant college or university with
a historic commitment to research in the food and agricultural
sciences.';
(3) in subsection (c)(1), by striking `and land-grant colleges and
universities' and inserting `, land-grant colleges and universities, and the
Committee on Agriculture of the House of Representatives, the Committee on
Agriculture, Nutrition, and Forestry of the Senate, the Subcommittee on
Agriculture, Rural Development, Food and Drug Administration and Related
Agencies of the Committee on Appropriations of the House of Representatives,
and the Subcommittee on Agriculture, Rural Development and Related Agencies
of the Committee on Appropriations of the Senate'; and
(4) in subsection (d)(1), inserting `consult with any appropriate
agencies of the Department of Agriculture and' after `the Advisory Board
shall'.
(b) GRANTS FOR RESEARCH ON PRODUCTION AND MARKETING OF ALCOHOLS AND
INDUSTRIAL HYDROCARBONS FROM AGRICULTURAL COMMODITIES AND FOREST PRODUCTS-
Section 1419 of the National Agricultural Research, Extension, and Teaching
Policy Act of 1977 (7 U.S.C. 3154) is amended--
(1) in subsection (a)(2), by inserting `and animal fats and oils' after
`industrial oilseed crops'; and
(2) in subsection (a)(4), by inserting `or triglycerides' after `other
industrial hydrocarbons'.
(c) FAS OVERSEAS INTERN PROGRAM- Section 1458(a) of the National
Agricultural Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C.
3291(a)) is amended--
(1) by striking `and' at the end of paragraph (8);
(2) by striking the period at the end of paragraph (9) and inserting `;
and'; and
(3) by adding at the end the following new paragraph:
`(10) establish a program, to be coordinated by the Cooperative State
Research, Education, and Extension Service and the Foreign Agricultural
Service, to place interns from United States colleges and universities at
Foreign Agricultural Service field offices overseas.'.
(d) RANGELAND RESEARCH GRANTS- Section 1480 of the National Agricultural
Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3333) is
amended to read as follows:
`SEC. 1480. RANGELAND RESEARCH GRANTS.
`(a) IN GENERAL- The Secretary may make grants to--
`(1) land-grant colleges and universities, State agricultural experiment
stations, and colleges, universities, and Federal laboratories having a
demonstrable capacity in rangeland research, as determined by the Secretary,
to carry out rangeland research; and
`(2) the Joe Skeen Institute for Rangeland Restoration for the purposes
of facilitating and expanding ongoing State-Federal range management, animal
husbandry, and agricultural research, education, and extension programs to
meet the targeted, emerging, and future needs of western United States
rangelands and associated natural resources.
`(b) MATCHING REQUIREMENTS-
`(1) IN GENERAL- Except as provided in paragraph (2), this grant program
shall be based on a matching formula of 50 percent Federal and 50 percent
non-Federal funding.
`(2) EXCEPTION- Paragraph (1) shall not apply to a grant to a Federal
laboratory or a grant under subsection (a)(2).'.
SEC. 7210. BIOTECHNOLOGY RISK ASSESSMENT RESEARCH.
Section 1668 of the Food, Agriculture, Conservation, and Trade Act of 1990
(7 U.S.C. 5921) is amended to read as follows:
`SEC. 1668. BIOTECHNOLOGY RISK ASSESSMENT RESEARCH.
`(a) PURPOSE- It is the purpose of this section--
`(1) to authorize and support environmental assessment research to help
identify and analyze environmental effects of biotechnology; and
`(2) to authorize research to help regulators develop long-term policies
concerning the introduction of such technology.
`(b) GRANT PROGRAM- The Secretary of Agriculture shall establish a grant
program within the Cooperative State Research, Education, and Extension
Service and the Agricultural Research Service to provide the necessary funding
for environmental assessment research concerning the introduction of
genetically engineered animals, plants, and microorganisms into the
environment.
`(c) RESEARCH PRIORITIES- The following types of research shall be given
priority for funding:
`(1) Research designed to identify and develop appropriate management
practices to minimize physical and biological risks associated with
genetically engineered animals, plants, and microorganisms.
`(2) Research designed to develop methods to monitor the dispersal of
genetically engineered animals, plants, and microorganisms.
`(3) Research designed to further existing knowledge with respect to the
characteristics, rates, and methods of gene transfer that may occur between
genetically engineered animals, plants, and microorganisms and related wild
and agricultural organisms.
`(4) Environmental assessment research designed to provide analysis
which compares the relative impacts of animals, plants, and microorganisms
modified through genetic engineering to other types of production
systems.
`(5) Other areas of research designed to further the purposes of this
section.
`(d) ELIGIBILITY REQUIREMENTS- Grants under this section shall be--
`(1) made on the basis of the quality of the proposed research project;
and
`(2) available to any public or private research or educational
institution or organization.
`(e) CONSULTATION- In considering specific areas of research for funding
under this section, the Secretary of Agriculture shall consult with the
Administrator of the Animal and Plant Health Inspection Service and the
National Agricultural Research, Extension, Education, and Economics Advisory
Board.
`(f) PROGRAM COORDINATION- The Secretary of Agriculture shall coordinate
research funded under this section with the Office of Research and Development
of the Environmental Protection Agency in order to avoid duplication of
research activities.
`(g) AUTHORIZATION OF APPROPRIATIONS-
`(1) IN GENERAL- There are authorized to be appropriated such sums as
necessary to carry out this section.
`(2) WITHHOLDINGS FROM BIOTECHNOLOGY OUTLAYS- The Secretary of
Agriculture shall withhold from outlays of the Department of Agriculture for
research on biotechnology, as defined and determined by the Secretary, at
least 2 percent of such amount for the purpose of making grants under this
section for research on biotechnology risk assessment.
`(3) APPLICATION OF FUNDS- Funds made available under this subsection
shall be applied, to the maximum extent practicable, to risk assessment
research on all categories identified in subsection (c).'.
SEC. 7211. COMPETITIVE, SPECIAL, AND FACILITIES RESEARCH GRANTS.
Section 2(b)(2) of the Competitive, Special, and Facilities Research Grant
Act (7 U.S.C. 450i(b)(2)) is amended by striking `in--' and inserting the
following: `in the areas described in subparagraphs (A) through (F). Such
needs shall be 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.'.
SEC. 7212. MATCHING FUNDS REQUIREMENT FOR RESEARCH AND EXTENSION ACTIVITIES
OF 1890 INSTITUTIONS.
Section 1449 of the National Agricultural Research, Extension, and
Teaching Policy Act of 1977 (7 U.S.C. 3222d) is amended--
(1) by amending subsection (c) to read as follows:
`(c) MATCHING FORMULA- Notwithstanding any other provision of this
subtitle, for each of fiscal years 2003 through 2007, the State shall provide
matching funds from non-Federal sources. Such matching funds shall be for an
amount equal to not less than--
`(1) 60 percent of the formula funds to be distributed to the eligible
institution for fiscal year 2003;
`(2) 70 percent of the formula funds to be distributed to the eligible
institution for fiscal year 2004;
`(3) 80 percent of the formula funds to be distributed to the eligible
institution for fiscal year 2005;
`(4) 90 percent of the formula funds to be distributed to the eligible
institution for fiscal year 2006; and
`(5) 100 percent of the formula funds to be distributed to the eligible
institution for fiscal year 2007 and each fiscal year thereafter.';
and
(2) by amending subsection (d) to read as follows:
`(d) WAIVER AUTHORITY- Notwithstanding subsection (f), the Secretary may
waive the matching funds requirement under subsection (c) above the 50 percent
level for any fiscal year for an eligible institution of a State if the
Secretary determines that the State will be unlikely to satisfy the matching
requirement.'.
SEC. 7213. 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.'.
SEC. 7214. DEFINITION OF FOOD AND AGRICULTURAL SCIENCES.
Section 2(3) of the Research Facilities Act (7 U.S.C. 390(2)(3)) is
amended to read as follows:
`(3) FOOD AND AGRICULTURAL SCIENCES- The term `food and agricultural
sciences' has the meaning given that term in section 1404(8) of the National
Agricultural Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C.
3103(8)).'.
SEC. 7215. FEDERAL EXTENSION SERVICE.
Section 3(b)(3) of the Smith-Lever Act (7 U.S.C. 343(b)(3)) is
amended--
(1) by striking `$5,000,000' and inserting `such sums as are necessary';
and
(2) by adding after the first sentence the following new sentence: `The
balance of any annual funds provided under the preceding sentence for a
fiscal year that remains unexpended at the end of that fiscal year shall
remain available without fiscal year limitation.'.
SEC. 7216. POLICY RESEARCH CENTERS.
Section 1419A(c)(3) of the National Agricultural Research, Extension, and
Teaching Policy Act of 1977 (7 U.S.C. 3155(c)(3)) is amended by striking
`collect and analyze' and inserting `collect, analyze, and disseminate'.
SEC. 7217. 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. 7218. 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) in paragraph (1), by inserting `, breeding,' after
`production';
(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;
`(5) identifying marketing and policy constraints on the expansion of
organic agriculture; and
`(6) 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) by amending subsection (e) to read as follows:
`(e) FUNDING- On October 1, 2003, and each October 1 thereafter through
October 1, 2007, out of any funds in the Treasury not otherwise appropriated,
the Secretary of the Treasury shall transfer $3,000,000 to the Secretary of
Agriculture for this section.'.
SEC. 7219. 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.'.
SEC. 7220. TERMINATION OF CERTAIN SCHEDULE A APPOINTMENTS.
(a) TERMINATION- Not later than January 31, 2003, 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;
(v) the Thrift Savings Plan; and
(vi) the Federal Long Term Care Insurance Program; 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
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 1 year 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.
SEC. 7221. BIOSECURITY PLANNING AND RESPONSE PROGRAMS.
(a) BIOSECURITY- 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
`SEC. 1484. 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 2007.
`(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) for the following:
`(1) To reduce the vulnerability of the United States food and
agricultural system to chemical or biological attack.
`(2) To continue partnerships with institutions of higher education and
other institutions to help form stable, long-term programs to enhance the
biosecurity of the United States, including the coordination of the
development, implementation, and enhancement of diverse capabilities for
addressing threats to the Nation's agricultural economy and food supply with
special emphasis on planning, training, outreach, and research activities
related to vulnerability analyses, incident response, and detection and
prevention technologies.
`(3) To make competitive grants to universities and qualified research
institutions for research on counterbioterrorism.
`(4) To counter or otherwise respond to chemical or biological
attack.
`SEC. 1485. AGRICULTURE RESEARCH FACILITY EXPANSION AND SECURITY
UPGRADES.
`(a) IN GENERAL- To enhance the security of agriculture in the United
States against threats posed by bioterrorism, the Secretary shall make
expansion or security upgrade grants on a competitive basis to colleges and
universities (as defined in section 1404(4)).
`(b) LIMITATION ON GRANTS- Grants to a recipient under this section shall
not exceed $10,000,000 in any fiscal year.
`(c) REQUIREMENTS FOR GRANTS- The Secretary shall make a grant under this
section only if the grant applicant provides satisfactory assurances to the
Secretary that--
`(1) sufficient funds are available to pay the non-Federal share of the
cost of the proposed expansion or security upgrades; and
`(2) the proposed expansion or security upgrades meet such reasonable
qualifications as may be established by the Secretary with respect to
biosafety and biosecurity requirements necessary to protect facility staff,
members of the public, and the food supply.
`(d) ADDITIONAL REQUIREMENTS FOR GRANTS FOR FACILITY EXPANSION- The
Secretary shall make a grant under this section for the expansion, renovation,
remodeling, or alteration (collectively referred to in this section as
`expansion') of a facility only if the grant applicant provides such
assurances as the Secretary determines to be satisfactory to ensure the
following:
`(1) For not less than 20 years after the grant is awarded, the facility
shall be used for the purposes of the research for which the facility was
expanded, as described in the grant application.
`(2) Sufficient funds will be available, as of the date of completion of
the expansion, for the effective use of the facility for the purposes of the
research for which the facility was expanded.
`(3) The proposed expansion--
`(A) will increase the capability of the applicant to conduct research
for which the facility was expanded; or
`(B) is necessary to improve the quality of the research of the
applicant.
`(e) AMOUNT OF GRANT- The amount of a grant awarded under this section
shall be determined by the Secretary.
`(f) FEDERAL SHARE- The Federal share of the cost of any expansion or
security upgrade carried out using funds from a grant provided under this
section shall not exceed 50 percent.
`(g) AUTHORIZATION OF APPROPRIATIONS- There are authorized to be
appropriated to carry out this section such sums as are necessary for each
fiscal year.'.
(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.
SEC. 7222. INDIRECT COSTS FOR SMALL BUSINESS INNOVATION RESEARCH
GRANTS.
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'; and
(2) 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. 7223. CARBON CYCLE RESEARCH.
Section 221 of the Agricultural Risk Protection Act of 2000 (Public Law
106-224; 114 Stat. 407), as amended by section 9009 of this Act, is
amended--
(1) in subsection (a), by striking `Of the amount' and all that follows
through `to provide' and inserting `To the extent funds are made available
for this purpose, the Secretary shall provide';
(2) in subsection (f), by striking `under subsection (a)' and inserting
`for this section'; and
(3) by adding at the end the following new subsection:
`(g) AUTHORIZATION OF APPROPRIATIONS- There are authorized to be
appropriated for fiscal years 2002 through 2007 such sums as may be necessary
to carry out this section.'.
Subtitle C--Repeal of Certain Activities and Authorities
SEC. 7301. FOOD SAFETY RESEARCH INFORMATION OFFICE AND NATIONAL
CONFERENCE.
(a) REPEAL- Subsections (b) and (c) of section 615 of the Agricultural
Research, Extension, and Education Reform Act of 1998 (7 U.S.C. 7654(b) and
(c)) are repealed.
(b) CONFORMING AMENDMENTS-
(1) GENERALLY- Section 615 of such Act is amended--
(A) in the section heading, by striking `and national
conference';
(B) by striking `(a) FOOD SAFETY RESEARCH INFORMATION OFFICE-
';
(C) by redesignating paragraphs (1), (2), and (3) as subsections (a),
(b), and (c), respectively, and moving the margins 2 ems to the
left;
(D) in subsection (b) (as so redesignated), by redesignating
subparagraphs (A) and (B) as paragraphs (1) and (2), respectively, and
moving the margins 2 ems to the left; and
(E) in subsection (c) (as so redesignated), by striking `this
subsection' and inserting `this section'.
(2) TABLE OF SECTIONS- The table of sections for such Act is amended by
striking `and National Conference' in the item relating to section
615.
SEC. 7302. REIMBURSEMENT OF EXPENSES UNDER SHEEP PROMOTION, RESEARCH, AND
INFORMATION ACT OF 1994.
Section 617 of the Agricultural Research, Extension, and Education Reform
Act of 1998 (Public Law 105-185; 112 Stat. 607) is repealed.
SEC. 7303. MARKET EXPANSION RESEARCH.
Section 1436 of the Food Security Act of 1985 (7 U.S.C. 1632) is
repealed.
SEC. 7304. NATIONAL ADVISORY BOARD ON AGRICULTURAL WEATHER.
(a) REPEAL- Section 1639 of the Food, Agriculture, Conservation, and Trade
Act of 1990 (7 U.S.C. 5853) is repealed.
(b) CONFORMING AMENDMENT- Section 1640(b) of the Food, Agriculture,
Conservation, and Trade Act of 1990 (7 U.S.C. 5854(b)) is amended by striking
`take into' and all that follows through `Weather and'.
SEC. 7305. AGRICULTURAL INFORMATION EXCHANGE WITH IRELAND.
Section 1420 of the National Agricultural Research, Extension and Teaching
Policy Act Amendments of 1985 (Public Law 99-198; 99 Stat. 1551) is
repealed.
SEC. 7306. PESTICIDE RESISTANCE STUDY.
Section 1437 of the National Agricultural Research, Extension, and
Teaching Policy Act Amendments of 1985 (Public Law 99-198; 99 Stat. 1558) is
repealed.
SEC. 7307. EXPANSION OF EDUCATION STUDY.
Section 1438 of the National Agricultural Research, Extension, and
Teaching Policy Act Amendments of 1985 (Public Law 99-198; 99 Stat. 1559) is
repealed.
SEC. 7308. TASK FORCE ON 10-YEAR STRATEGIC PLAN FOR AGRICULTURAL RESEARCH
FACILITIES.
(a) REPEAL- Section 4 of the Research Facilities Act (7 U.S.C. 390b) is
repealed.
(b) CONFORMING AMENDMENT- Section 2 of such Act (7 U.S.C. 390) is amended
by striking paragraph (5).
Subtitle D--New Authorities
SEC. 7401. SUBTITLE DEFINITIONS.
(1) DEPARTMENT- The term `Department' means the Department of
Agriculture.
(2) SECRETARY- The term `Secretary' means the Secretary of
Agriculture.
SEC. 7402. 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 are authorized to be
appropriated to carry out this section such sums as may be necessary for each
of fiscal years 2002 through 2007.'.
SEC. 7403. 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 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.
`(c) REGULATIONS- The Secretary and a cooperating Federal agency may agree
to make applicable to recipients of grants--
`(1) the post-award grant administration regulations applicable to
recipients of grants from the Secretary; or
`(2) the post-award grant administration regulations applicable to
recipients of grants from the cooperating Federal agency.
`(d) 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. 7404. REVIEW OF AGRICULTURAL RESEARCH SERVICE.
(a) IN GENERAL- Not later than 90 days after the date of enactment of this
Act, the Secretary shall establish a task force to--
(1) conduct a review of the Agricultural Research Service; and
(2) evaluate the merits of establishing one or more National Institutes
focused on disciplines important to the progress of food and agricultural
science.
(1) IN GENERAL- The Task Force shall consist of 8 members, appointed by
the Secretary, that--
(A) have a broad-based background in plant, animal, and agricultural
sciences research, food, nutrition, biotechnology, crop production
methods, environmental science, or related disciplines; and
(B) are familiar with the role and infrastructure used to conduct
Federal and private research, including--
(i) the Agricultural Research Service;
(ii) the National Institutes of Health;
(iii) the National Science Foundation;
(iv) the National Aeronautics and Space Administration;
(v) the Department of Energy laboratory system; or
(vi) the Cooperative State Research, Education, 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 or come from institutions of higher education.
(3) PLANT AND AGRICULTURAL SCIENCES RESEARCH- Of the members appointed
under paragraph (1), the Secretary shall appoint at least 3 members that
have an extensive background and preeminence in the field of plant, animal,
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 indepth 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) conduct a review of the purpose, efficiency, effectiveness, and
impact on agricultural research of the Agricultural Research Service;
(2) conduct a review and evaluation of the merits of establishing one or
more National Institutes (such as National Institutes for Plant and
Agricultural Sciences) focused on disciplines important to the progress of
food and agricultural sciences, and, if establishment of one or more
National Institutes is recommended, provide further recommendations to the
Secretary, including the structure for establishing each Institute, the
multistate area location of each Institute, and the amount of funding
necessary to establish each Institute; and
(3) submit the reports required by subsection (d).
(d) REPORTS- Not later than 12 months after the date of enactment of this
Act, 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--
(1) a report on the review and evaluation required under subsection
(c)(1); and
(2) a report on the review and evaluation required under subsection
(c)(2).
(e) FUNDING- The Secretary shall use to carry out this section not more
than 0.1 percent of the amount of appropriations available to the Agricultural
Research Service for fiscal year 2003.
SEC. 7405. 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 subsection 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.
(h) Authorization of Appropriations- There are authorized to be
appropriated to carry out this section such sums as may be necessary for each
of fiscal years 2002 through 2007.
SEC. 7406. 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. 7407. 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. 7408. INTERNATIONAL ORGANIC RESEARCH COLLABORATION.
The Secretary, acting through the Agricultural Research Service (including
the National Agricultural 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. 7409. 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 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;
(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.
SEC. 7410. REPORT ON GENETICALLY MODIFIED PEST-PROTECTED PLANTS.
It is the sense of Congress that, not later than 1 year after the date of
enactment of this Act, the Secretary should--
(1) review the recommendations of the Committee on Genetically Modified
Pest-Protected Plants of the Board on Agriculture and Natural Resources of
the National Research Council made during 2000 and the Committee on
Environmental Impacts Associated with Commercialization of Transgenic Plants
made during 2002, concerning food safety, ecological research, monitoring
needs for transgenic crops with plant incorporated protectants, and the
environmental effects of transgenic plants; 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, including agencies that
develop or implement programs or objectives relating to marketing,
regulation, food safety, research, education, or economics.
SEC. 7411. STUDY OF NUTRIENT BANKING.
(a) IN GENERAL- The Secretary may conduct a study to evaluate nutrient
banking for the purpose of enhancing the health and viability of watersheds in
areas with large concentrations of animal producing units.
(b) COMPONENTS- In conducting any study under subsection (a), 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- 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 any study
conducted under subsection (a).
SEC. 7412. 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 7206(e)) 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 2007.'.
Subtitle E--Miscellaneous
SEC. 7501. RESIDENT INSTRUCTION AND DISTANCE EDUCATION AT INSTITUTIONS OF
HIGHER EDUCATION IN UNITED STATES INSULAR AREAS.
(a) PURPOSE- It is the purpose of this subtitle to promote and strengthen
higher education in the food and agricultural sciences at institutions of
higher education (as defined in section 101(a) of the Higher Education Act of
1965 (20 U.S.C. 1001(a))) that have demonstrable capacity to carry out
teaching and extension programs in food and agricultural sciences and that are
located in the insular areas of the Commonwealth of Puerto Rico, the Virgin
Islands of the United States, Guam, American Samoa, the Commonwealth of the
Northern Mariana Islands, the Federated States of Micronesia, the Republic of
the Marshall Islands, or the Republic of Palau by formulating and
administering programs to enhance teaching programs in agriculture, natural
resources, forestry, veterinary medicine, home economics, and disciplines
closely allied to the food and agriculture production and delivery systems.
SEC. 7502. 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. 7503. RESIDENT INSTRUCTION AND DISTANCE EDUCATION GRANTS PROGRAM FOR
INSULAR AREA INSTITUTIONS OF HIGHER EDUCATION.
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 O--Institutions of Higher Education in Insular
Areas
`SEC. 1489. DEFINITION.
`For the purposes of this subtitle, the term `eligible institution' means
an institution of higher education (as defined in section 101(a) of the Higher
Education Act of 1965 (20 U.S.C. 1001(a)) in an insular area that has
demonstrable capacity to carry out teaching and extension programs in the food
and agricultural sciences.
`SEC. 1490. DISTANCE EDUCATION GRANTS FOR INSULAR AREAS.
`(a) IN GENERAL- The Secretary may make competitive or noncompetitive
grants to eligible institutions in insular areas to strengthen the capacity of
such 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; 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 eligible
institutions in the Atlantic and Pacific Oceans.
`(e) MATCHING REQUIREMENT-
`(1) IN GENERAL- The Secretary may establish a requirement that an
eligible 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 Secretary shall retain an option to waive the requirement
for an eligible 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 such sums as may be necessary for each
of fiscal years 2002 through 2007.
`SEC. 1491. RESIDENT INSTRUCTION GRANTS FOR INSULAR AREAS.
`(a) IN GENERAL- The Secretary of Agriculture shall make competitive
grants to eligible institutions to--
`(1) strengthen institutional educational capacities, including
libraries, curriculum, faculty, scientific instrumentation, instruction
delivery systems, and student recruitment and retention, in order to respond
to identified State, regional, national, or international education needs in
the food and agricultural sciences;
`(2) attract and support undergraduate and graduate students in order to
educate them in identified areas of national need in the food and
agriculture sciences;
`(3) facilitate cooperative initiatives between two or more insular area
eligible institutions, or between those institutions and units of State
Government or organizations in the private sector, to maximize the
development and use of resources such as faculty, facilities, and equipment
to improve food and agricultural sciences teaching programs; and
`(4) conduct undergraduate scholarship programs to assist in meeting
national needs for training food and agricultural scientists.
`(1) The Secretary of Agriculture shall ensure that each eligible
institution, prior to receiving grant funds under subsection (a), shall have
a significant demonstrable commitment to higher education programs in the
food and agricultural sciences and to each specific subject area for which
grant funds under this section are to be used.
`(2) The Secretary of Agriculture may require that any grant awarded
under this section contain provisions that require funds to be targeted to
meet the needs identified in section 1402.
`(e) AUTHORIZATION OF APPROPRIATIONS- There are authorized to be
appropriated such sums as are necessary for each of the fiscal years 2002
through 2007 to carry out this section.'.
SEC. 7504. DECLARATION OF EXTRAORDINARY EMERGENCY AND RESULTING
AUTHORITIES.
(a) REVIEW OF PAYMENT OF COMPENSATION- Section 415(e) of the Plant
Protection Act (7 U.S.C. 7715(e)) is amended by inserting before the final
period the following: `or a review of longer than 60 days by any officer or
employee of the Federal Government other than the Secretary or the designee of
the Secretary'.
(b) REVIEW OF CERTAIN DECISIONS- Section 442 of the Plant Protection Act
(7 U.S.C. 7772) is amended by adding at the end the following new
subsection:
`(c) SECRETARIAL DISCRETION- The action of any officer, employee, or agent
of the Secretary in carrying out this Act, including determining the amount of
and making any payment authorized to be made under this title, shall not be
subject to a review of longer than 60 days by any officer or employee of the
Federal Government other than the Secretary or the designee of the
Secretary.'.
(c) METHYL BROMIDE- The Plant Protection Act (7 U.S.C. 7701 et seq.) is
amended by inserting after section 418 the following new section:
`SEC. 419. METHYL BROMIDE.
`(a) IN GENERAL- The Secretary, upon request of State, local, or tribal
authorities, shall determine whether methyl bromide treatments or applications
required by State, local, or tribal authorities to prevent the introduction,
establishment, or spread of plant pests (including diseases) or noxious weeds
should be authorized as an official control or official requirement. The
Secretary shall not authorize such treatments or applications unless the
Secretary finds there is no other registered, effective, and economically
feasible alternative available.
`(b) METHYL BROMIDE ALTERNATIVE- The Secretary, in consultation with
State, local and tribal authorities, shall establish a program to identify
alternatives to methyl bromide for treatment and control of plant pests and
weeds. For uses where no registered, effective, economically feasible
alternatives available can currently be identified, the Secretary shall
initiate research programs to develop alternative methods of control and
treatment.
`(c) REGISTRY- Not later than 180 days after the date of enactment of this
section, the Secretary shall publish, and thereafter maintain, a registry of
State, local, and tribal requirements authorized by the Secretary under this
section.
`(1) TIMELINE FOR DETERMINATION- Upon the promulgation of regulations to
carry out this section, the Secretary shall make the determination required
by subsection (a) not later than 90 days after receiving the request for
such a determination.
`(2) CONSTRUCTION- Nothing in this section shall be construed to alter
or modify the authority of the Administrator of the Environmental Protection
Agency or to provide any authority to the Secretary of Agriculture under the
Clean Air Act or regulations promulgated under the Clean Air Act.'.
SEC. 7505. 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.) is amended by adding at the end the
following:
`SEC. 411. AGRICULTURAL BIOTECHNOLOGY RESEARCH AND DEVELOPMENT FOR
DEVELOPING COUNTRIES.
`(a) ELIGIBLE ENTITY- In this section, the term `eligible entity'
means--
`(A) an institution of higher education that offers a curriculum in
agriculture or the biosciences;
`(B) a nonprofit organization; or
`(C) a consortium of for-profit institutions and agricultural research
institutions.
`(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 are authorized to be
appropriated such sums as may be necessary to carry out this section for each
of fiscal years 2002 through 2007.'.
SEC. 7506. LAND ACQUISITION AUTHORITY, NATIONAL PEANUT RESEARCH LABORATORY,
DAWSON, GEORGIA.
The limitation on the authority of the Agricultural Research Service to
acquire lands by purchase using funds appropriated under the heading
AGRICULTURAL RESEARCH SERVICE-SALARIES AND EXPENSES in the Agriculture, Rural
Development, Food and Drug Administration, and Related Agencies Appropriations
Act, 2002 (Public Law 107-76; 115 Stat. 708), shall not apply to the purchase
of land for a research farm for the National Peanut Research Laboratory in
Dawson, Georgia, for which a lease with an option to purchase has been entered
into before the date of enactment of this Act.
TITLE VIII--FORESTRY
Subtitle A--Cooperative Forestry Assistance Act of 1978
SEC. 8001. REPEAL OF FORESTRY INCENTIVES PROGRAM AND STEWARDSHIP INCENTIVE
PROGRAM.
(a) REPEAL- The Cooperative Forestry Assistance Act of 1978 is amended by
striking section 4 (16 U.S.C. 2103) and section 6 (16 U.S.C. 2103b).
(b) USE OF REMAINING FUNDS- Notwithstanding the amendment made by
subsection (a), the Secretary of Agriculture may use funds appropriated for
fiscal year 2002 for the forestry incentives program or the stewardship
incentive program, but not expended before the date of enactment of this Act,
to carry out sections 4 and 6 of the Cooperative Forestry Assistance Act of
1978, as in effect on the date before the date of enactment of this Act.
SEC. 8002. ESTABLISHMENT OF FOREST LAND ENHANCEMENT PROGRAM.
(a) PURPOSES- The purposes of this section are--
(1) to strengthen the commitment of the Secretary of Agriculture 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
(2) 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) FOREST LAND ENHANCEMENT PROGRAM- The Cooperative Forestry Assistance
Act of 1978 is amended by inserting after section 3 (16 U.S.C. 2102) the
following:
`SEC. 4. FOREST LAND ENHANCEMENT PROGRAM.
`(1) IN GENERAL- The Secretary of Agriculture shall establish a forest
land enhancement program--
`(A) to provide financial assistance to State foresters; and
`(B) to encourage the long-term sustainability of nonindustrial
private forest lands in the United States by assisting the owners of
nonindustrial private forest lands, through State foresters, in more
actively managing the nonindustrial private forest lands 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 AND CONSULTATION- The Secretary, acting through State
foresters, shall implement the program--
`(A) in coordination with the State Forest Stewardship Coordinating
Committees; and
`(B) in consultation with other Federal, State, and local natural
resource management agencies, institutions of higher education, and a
broad range of private sector interests.
`(b) PROGRAM OBJECTIVES- In implementing the program, the Secretary shall
target resources to achieve the following objectives:
`(1) Investing in practices to establish, restore, protect, manage,
maintain, and enhance the health and productivity of the nonindustrial
private forest lands in the United States for timber, habitat for flora and
fauna, soil, water, and air quality, wetlands, and riparian buffers.
`(2) Ensuring that afforestation, reforestation, improvement of poorly
stocked stands, timber stand improvement, practices necessary to improve
seedling growth and survival, and growth enhancement practices occur where
needed to enhance and sustain the long-term productivity of timber and
nontimber forest resources to help meet future public demand for all forest
resources and provide environmental benefits.
`(3) Reducing the risks and helping restore, recover, and mitigate the
damage to forests caused by fire, insects, invasive species, disease, and
damaging weather.
`(4) Increasing and enhancing carbon sequestration opportunities.
`(5) Enhancing implementation of agroforestry practices.
`(6) Maintaining and enhancing the forest landbase and leverage State
and local financial and technical assistance to owners that promote the same
conservation and environmental values.
`(7) Preserving the aesthetic quality of nonindustrial private forest
lands and providing opportunities for outdoor recreation.
`(c) STATE PRIORITY PLAN-
`(1) DEVELOPMENT- The State Forester and State Forest Stewardship
Coordinating Committee of a State shall jointly develop and submit to the
Secretary a State priority plan that is intended to promote forest
management objectives in that State.
`(2) REPORT- Not later than September 30, 2006, each State that
implemented a State priority plan shall submit to the Secretary a report
describing the status of all activities and practices funded under the
program as of that date.
`(d) OWNER ELIGIBILITY FOR ASSISTANCE-
`(1) ELIGIBILITY CRITERIA- To be eligible for cost-share assistance
under the program, an owner of nonindustrial private forest lands shall
agree--
`(A) to develop and implement, in cooperation with a State forester,
another State official, or a professional resources manager, a management
plan that--
`(i) except as provided in paragraph (2) or (3), provides for the
treatment of not more than 1,000 acres of nonindustrial private forest
lands;
`(ii) is approved by the State forester; and
`(iii) addresses site specific activities and practices;
and
`(B) to implement approved activities and practices in a manner
consistent with the management plan for a period of not less than 10
years, unless the State forester approves a modification to the
plan.
`(2) PUBLIC BENEFIT EXCEPTION- The Secretary may increase the acreage
limitation specified in paragraph (1)(A)(i) to not more than 5,000 acres for
an owner of nonindustrial private forest lands if the Secretary, in
consultation with the State forester, determines that significant public
benefits will accrue as a result of the provision of cost-share assistance
under the program for the treatment of the additional acreage.
`(3) PLAN DEVELOPMENT EXCEPTION- An owner may receive cost-share
assistance under the program for the purpose of developing a management plan
under subsection (e) that provides for the treatment of acreage in excess of
the acreage limitations specified in paragraphs (1)(A)(i) and (2), except
that the owner's eligibility for cost-share assistance to implement approved
activities and practices under the management plan remains subject to the
acreage limitation specified in paragraph (1)(A)(i) or, if the Secretary
makes the determination described in paragraph (2), the acreage limitation
specified in that paragraph.
`(1) SUBMISSION AND CONTENT- An owner of nonindustrial private forest
lands that seeks to participate in the program shall submit to the State
forester of the State in which the lands are located a management plan
that--
`(A) identifies and describes projects and activities to be carried
out by the owner to protect or enhance soil, water, air, range and
aesthetic quality, recreation, timber, water, wetland, or fish and
wildlife resources on the lands in a manner that is compatible with the
objectives of the owner;
`(B) addresses any criteria established by the State and the
applicable Committee; and
`(C) meets the other requirements of this section.
`(2) LANDS COVERED- At a minimum, the management plan shall apply to
those portions of the nonindustrial private forest lands of the owner on
which any project or activity funded under the program will be carried out.
In a case in which a project or activity may affect acreage outside the
portion of the land on which the project or activity is carried out, the
management plan shall apply to all lands of the owner that are in forest
cover and may be affected by the project or activity.
`(f) APPROVED ACTIVITIES-
`(1) STATE LIST- The Secretary 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. The Secretary shall develop the list
for a State in consultation with the State forester and the Committee for
that State.
`(2) TYPES OF ACTIVITIES- Approved activities and practices under
paragraph (1) may consist of activities and practices for the following
purposes:
`(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 management, maintenance, restoration, or development of
habitat for plants, fish, and wildlife.
`(F) The control, detection, monitoring, and prevention of the spread
of invasive species and pests on nonindustrial private forest
lands.
`(G) The restoration of nonindustrial private forest land affected by
invasive species and pests.
`(H) The conduct of other management activities, such as the reduction
of hazardous fuels, 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.
`(I) The development of management plans;
`(J) The conduct of energy conservation and carbon sequestration
activities.
`(K) The conduct of other activities approved by the Secretary, in
consultation with the State forester and the appropriate
Committees.
`(g) REIMBURSEMENT OF ELIGIBLE ACTIVITIES-
`(1) IN GENERAL- In the case of an eligible owner that has an approved
management plan, the Secretary shall share the cost of implementing the
approved activities and practices that the Secretary determines are
appropriate.
`(2) RATE- The Secretary shall determine the appropriate reimbursement
rate for cost-share payments under paragraph (1) and the schedule for making
those payments.
`(3) MAXIMUM COST SHARE- The Secretary shall not make cost-share
payments under this subsection to an owner in an amount in excess of 75
percent, or a lower percentage as determined by the State forester, of the
total cost to the owner to implement the approved activities and practices
under the management plan.
`(4) AGGREGATE PAYMENT LIMIT- The Secretary shall determine the maximum
aggregate amount of cost-share payments that an owner may receive under the
program.
`(5) CONSULTATION- The Secretary shall make determinations under this
subsection in consultation with the State forester.
`(1) IN GENERAL- The Secretary shall establish and implement a mechanism
to recapture payments made to an owner in the event that the owner fails to
implement an approved activity or practice specified in the management plan
for which the owner received cost-share payments.
`(2) ADDITIONAL REMEDY- The remedy provided in paragraph (1) is in
addition to any other remedy available to the Secretary.
`(i) DISTRIBUTION OF COST-SHARE FUNDS- The Secretary, acting through the
State foresters, shall distribute funds available for cost sharing under the
program only after giving appropriate consideration to the following
factors:
`(1) The public benefits that would result from the distribution.
`(2) The total acreage of nonindustrial private forest lands in each
State.
`(3) The potential productivity of those lands, as determined by the
Secretary.
`(4) The number of owners eligible for cost sharing in each State.
`(5) The opportunities to enhance nontimber resources on those lands,
including--
`(A) the protection of riparian buffers and forest wetland;
`(B) the preservation of fish and wildlife habitat;
`(C) the enhancement of soil, air, and water quality; and
`(D) the preservation of aesthetic quality and opportunities for
outdoor recreation.
`(6) The anticipated demand for timber and nontimber resources in each
State.
`(7) The need to improve forest health to minimize the damaging effects
of catastrophic fire, insects, disease, or weather.
`(8) The need and demand for agroforestry practices in each State.
`(9) The need to maintain and enhance the forest landbase.
`(10) The need for afforestation, reforestation, and timber stand
improvement.
`(j) AVAILABILITY OF FUNDS- The Secretary shall use $100,000,000 of funds
of the Commodity Credit Corporation to carry out the Program during the period
beginning on the date of enactment of the Farm Security and Rural Investment
Act of 2002 and ending on September 30, 2007.
`(k) DEFINITIONS- In this section:
`(1) NONINDUSTRIAL PRIVATE FOREST LANDS- The term `nonindustrial private
forest lands' means rural lands, as determined by the Secretary,
that--
`(A) have existing tree cover or are suitable for growing trees;
and
`(B) are owned by any nonindustrial private individual, group,
association, corporation, Indian tribe, or other private legal entity so
long as the individual, group, association, corporation, tribe, or entity
has definitive decision-making authority over the lands.
`(2) COMMITTEE- The terms `State Forest Stewardship Coordinating
Committee' and `Committee' means a State Forest Stewardship Coordinating
Committee established under section 19(b).
`(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) OWNER- The term `owner' means an owner of nonindustrial private
forest land.
`(5) PROGRAM- The term `program' means the forest land enhancement
program established by this section.
`(6) SECRETARY- The term `Secretary' means the Secretary of
Agriculture.
`(7) STATE FORESTER- The term `State forester' means the director or
other head of a State Forestry Agency or equivalent State official.'.
(c) CONFORMING AMENDMENT- Section 246(b)(2) of the Department of
Agriculture Reorganization Act of 1994 (7 U.S.C. 6962(b)(2)) is amended by
striking `forestry incentive program' and inserting `forest land enhancement
program'.
SEC. 8003. ENHANCED COMMUNITY FIRE PROTECTION.
(a) FINDINGS- Congress finds the following:
(1) The severity and intensity of wildland fires has 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.
(3) Wildland fires threaten not only the forested resources of the
United States, but also the thousands of communities intermingled with the
wildlands in the wildland-urban interface.
(4) The National Fire Plan, if implemented to achieve appropriate
priorities, is the proper, coordinated, and most effective means to address
the issue of wildfires.
(5) While adequate authorities exist to tackle the wildfire issues at
the landscape level on Federal lands, there is limited authority to take
action on most private lands, and the largest threat to life and property
exists on private lands.
(6) There is a significant Federal interest in enhancing community
protection from wildfire.
(b) ENHANCED 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 RELATED TO WILDFIRE THREATS- The Secretary may
cooperate with State foresters and equivalent State officials in the
management of lands in the United States for the following purposes:
`(1) Aid in wildfire prevention and control.
`(2) Protect communities from wildfire threats.
`(3) Enhance the growth and maintenance of trees and forests that
promote overall forest health.
`(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) ESTABLISHMENT; PURPOSE- The Secretary shall establish a Community
and Private Land Fire Assistance program (in this subsection referred to as
the `Program')--
`(A) to focus the Federal role in promoting optimal firefighting
efficiency at the Federal, State, and local levels;
`(B) to augment Federal projects that establish landscape level
protection from wildfires;
`(C) to expand outreach and education programs to homeowners and
communities about fire prevention; and
`(D) to establish space around homes and property of private
landowners that is defensible against wildfires.
`(2) ADMINISTRATION AND IMPLEMENTATION- The Program shall be
administered by the Forest Service and implemented through State foresters
or equivalent State officials.
`(3) COMPONENTS- In coordination with existing authorities under this
Act, the Secretary, in consultation with the State forester or equivalent
State official, may undertake on non-Federal lands--
`(A) fuel hazard mitigation and prevention;
`(B) invasive species management;
`(C) multiresource wildfire planning;
`(D) community protection planning;
`(E) community and landowner education enterprises, including the
program known as FIREWISE;
`(F) market development and expansion;
`(G) improved wood utilization; and
`(H) special restoration projects.
`(4) CONSENT REQUIRED- Program activities undertaken by the Secretary on
non-Federal lands shall be undertaken only with the consent of the owner of
the lands.
`(5) CONSIDERATIONS- The Secretary shall use persons in the local
community wherever possible to carry out projects under the Program.
`(c) CONSULTATION- In carrying out this section, the Secretary shall
consult with the Administrator of the United States Fire Administration, the
Director of the National Institute of Standards and Technology, and the heads
of other Federal agencies, as necessary.
`(d) AUTHORIZATION OF APPROPRIATIONS- There are hereby authorized to be
appropriated to the Secretary to carry out this section--
`(1) $35,000,000 for each of fiscal years 2002 through 2007; and
`(2) such sums as are necessary for fiscal years thereafter.'.
Subtitle B--Amendments to Other Laws
SEC. 8101. 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 the
following:
`(1) The value and benefits of practicing sustainable forestry.
`(2) The importance of professional forestry advice in achieving
sustainable forestry objectives.
`(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 2007.'.
(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 `2007'.
SEC. 8102. OFFICE OF INTERNATIONAL FORESTRY.
Section 2405(d) of the Global Climate Change Prevention Act of 1990 (7
U.S.C. 6704(d)) is amended by striking `2002' and inserting `2007'.
Subtitle C--Miscellaneous Provisions
SEC. 8201. MCINTIRE-STENNIS COOPERATIVE FORESTRY RESEARCH PROGRAM.
It is the sense of Congress to reaffirm the importance of Public Law
87-788 (16 U.S.C. 582a et seq.), commonly known as the `McIntire-Stennis
Cooperative Forestry Act'.
TITLE IX--ENERGY
SEC. 9001. DEFINITIONS.
(1) ADMINISTRATOR- The term `Administrator' means the Administrator of
the Environmental Protection Agency.
(2) BIOBASED PRODUCT- The term `biobased product' means a product
determined by the Secretary to be a commercial or industrial product (other
than food or feed) that is composed, in whole or in significant part, of
biological products or renewable domestic agricultural materials (including
plant, animal, and marine materials) or forestry materials.
(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--
(ii) trees grown for energy production;
(iii) wood waste and wood residues;
(iv) plants (including aquatic plants and grasses);
(vii) animal wastes and other waste materials; and
(viii) fats, oils, and greases (including recycled fats, oils, and
greases).
(C) EXCLUSIONS- The term `biomass' does not include--
(i) paper that is commonly recycled; or
(ii) unsegregated solid waste.
(4) RENEWABLE ENERGY- The term `renewable energy' means energy derived
from--
(A) a wind, solar, biomass, or geothermal source; or
(B) hydrogen derived from biomass or water using an energy source
described in subparagraph (A).
(5) RURAL SMALL BUSINESS- The term `rural small business' has the
meaning that the Secretary shall prescribe by regulation.
(6) SECRETARY- The term `Secretary' means the Secretary of
Agriculture.
SEC. 9002. FEDERAL PROCUREMENT OF BIOBASED PRODUCTS.
(a) APPLICATION OF SECTION- Except as provided in subsection (c), each
Federal agency shall comply with the requirements set forth in this section
and any regulations issued under this section, with respect to any purchase or
acquisition of a procurement item where the purchase price of the item exceeds
$10,000 or where the quantity of such items or of functionally equivalent
items purchased or acquired in the course of the preceding fiscal year was
$10,000 or more.
(b) PROCUREMENT SUBJECT TO OTHER LAW- Any procurement, by any Federal
agency, which is subject to regulations of the Administrator under section
6002 of the Solid Waste Disposal Act (42 U.S.C. 6962), shall not be subject to
the requirements of this section to the extent that such requirements are
inconsistent with such regulations.
(c) PROCUREMENT PREFERENCE- (1) Except as provided in paragraph (2), after
the date specified in applicable guidelines prepared pursuant to subsection
(e) of this section, each Federal agency which procures any items designated
in such guidelines shall, in making procurement decisions, give preference to
such items composed of the highest percentage of biobased products
practicable, consistent with maintaining a satisfactory level of competition,
considering such guidelines.
(2) AGENCY FLEXIBILITY- Notwithstanding paragraph (1), an agency may
decide not to procure such items if the agency determines that the items--
(A) are not reasonably available within a reasonable period of
time;
(B) fail to meet the performance standards set forth in the applicable
specifications or fail to meet the reasonable performance standards of the
procuring agencies; or
(C) are available only at an unreasonable price.
(3) After the date specified in any applicable guidelines prepared
pursuant to subsection (e) of this section, contracting offices shall require
that, with respect to biobased products, vendors certify that the biobased
products to be used in the performance of the contract will comply with the
applicable specifications or other contractual requirements.
(d) SPECIFICATIONS- All Federal agencies that have the responsibility for
drafting or reviewing specifications for procurement items procured by Federal
agencies shall, within one year after the date of publication of applicable
guidelines under subsection (e), or as otherwise specified in such guidelines,
assure that such specifications require the use of biobased products
consistent with the requirements of this section.
(1) IN GENERAL- The Secretary, after consultation with the
Administrator, the Administrator of General Services, and the Secretary of
Commerce (acting through the Director of the National Institute of Standards
and Technology), shall prepare, and from time to time revise, guidelines for
the use of procuring agencies in complying with the requirements of this
section. Such guidelines shall--
(A) designate those items which are or can be produced with biobased
products and whose procurement by procuring agencies will carry out the
objectives of this section;
(B) set forth recommended practices with respect to the procurement of
biobased products and items containing such materials and with respect to
certification by vendors of the percentage of biobased products used;
and
(C) provide information as to the availability, relative price,
performance, and environmental and public health benefits, of such
materials and items and where appropriate shall recommend the level of
biobased material to be contained in the procured product.
(2) CONSIDERATIONS- In making the designation under paragraph (1)(A),
the Secretary shall, at a minimum, consider--
(A) the availability of such items; and
(B) the economic and technological feasibility of using such items,
including life cycle costs.
(3) FINAL GUIDELINES- The Secretary shall prepare final guidelines under
this section within 180 days after the date of enactment of this Act.
(f) OFFICE OF FEDERAL PROCUREMENT POLICY- The Office of Federal
Procurement Policy, in cooperation with the Secretary, shall implement the
requirements of this section. It shall be the responsibility of the Office of
Federal Procurement Policy to coordinate this policy with other policies for
Federal procurement to implement the requirements of this section, and, every
two years beginning in 2003, to report to the Congress on actions taken by
Federal agencies and the progress made in the implementation of this section,
including agency compliance with subsection (d).
(g) PROCUREMENT PROGRAM- (1) Within one year after the date of publication
of applicable guidelines under subsection (e), each Federal agency shall
develop a procurement program which will assure that items composed of
biobased products will be purchased to the maximum extent practicable and
which is consistent with applicable provisions of Federal procurement law.
(2) Each procurement program required under this subsection shall, at a
minimum, contain--
(A) a biobased products preference program;
(B) an agency promotion program to promote the preference program
adopted under subparagraph (A); and
(C) annual review and monitoring of the effectiveness of an agency's
procurement program.
(3) In developing the preference program, the following options shall be
considered for adoption:
(A) CASE-BY-CASE POLICY DEVELOPMENT- Subject to the limitations of
subsection (c)(2) (A) through (C), a policy of awarding contracts to the
vendor offering an item composed of the highest percentage of biobased
products practicable. Subject to such limitations, agencies may make an
award to a vendor offering items with less than the maximum biobased
products content.
(B) MINIMUM CONTENT STANDARDS- Minimum biobased products content
specifications which are set in such a way as to assure that the biobased
products content required is consistent with the requirements of this
section, without violating the limitations of subsection (c)(2) (A) through
(C).
Federal agencies shall adopt one of the options set forth in subparagraphs
(A) and (B) or a substantially equivalent alternative, for inclusion in the
procurement program.
(1) IN GENERAL- The Secretary, in consultation with the Administrator,
shall establish a voluntary program under which the Secretary authorizes
producers of biobased products to use the label `U.S.D.A. Certified Biobased
Product'.
(2) ELIGIBILITY CRITERIA- Within one year after the date of enactment of
this Act, the Secretary, in consultation with the Administrator, shall issue
criteria for determining which products may qualify to receive the label
under paragraph (1). The criteria shall encourage the purchase of products
with the maximum biobased content, and should, to the maximum extent
possible, be consistent with the guidelines issued under subsection
(e).
(3) USE OF THE LABEL- The Secretary shall ensure that the label referred
to in paragraph (1) is used only on products that meet the criteria issued
pursuant to paragraph (2).
(4) RECOGNITION- The Secretary shall establish a voluntary program to
recognize Federal agencies and private entities that use a substantial
amount of biobased products.
(i) LIMITATION- Nothing in this section shall apply to the procurement of
motor vehicle fuels or electricity.
(1) AUTHORIZATION OF APPROPRIATIONS- There are authorized to be
appropriated such sums as may be necessary to carry out this section.
(2) FUNDING FOR TESTING OF BIOBASED PRODUCTS-
(A) IN GENERAL- Of the funds of the Commodity Credit Corporation, the
Secretary shall use $1,000,000 for each of fiscal years 2002 through 2007
to support testing of biobased products to carry out this
section.
(B) USE OF FUNDS- Amounts made available under subparagraph (A) may be
used to support contracts or cooperative agreements with entities that
have experience and special skills to conduct such testing.
(C) PRIORITY- At the discretion of the Secretary, the Secretary may
give priority to the testing of products for which private sector firms
provide cost sharing for the testing.
SEC. 9003. BIOREFINERY DEVELOPMENT GRANTS.
(a) PURPOSE- The purpose of this section is to assist in the development
of new and emerging technologies for the use of biomass, including
lignocellulosic biomass, so as to--
(1) develop transportation and other fuels, chemicals, and energy from
renewable sources;
(2) increase the energy independence of the United States;
(3) provide beneficial effects on conservation, public health, and the
environment;
(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- An individual, corporation, farm cooperative,
association of farmers, national laboratory, institution of higher education
(as defined in section 101 of the Higher Education Act of 1965 (20 U.S.C.
1001)), State or local 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 after consulting 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 new and emerging process
for converting biomass into fuels, chemicals, or energy; and
(ii) may consider the likelihood that the projects will produce
electricity.
(B) FACTORS- The factors to be considered under subparagraph (A) may
include--
(i) the potential market for the product or products;
(ii) the level of financial participation by the
applicants;
(iii) the availability of adequate funding from other
sources;
(iv) the beneficial impact on resource conservation, public health,
and the environment;
(v) the participation of producer associations and
cooperatives;
(vi) the timeframe in which the project will be
operational;
(vii) the potential for rural economic development;
(viii) the participation of multiple eligible entities;
and
(ix) the potential for developing advanced industrial biotechnology
approaches.
(1) IN GENERAL- The amount of a grant for a project awarded under
subsection (c) shall not exceed 30 percent of the cost of the project.
(2) 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).
(g) CONSULTATION- In carrying out this section, the Secretary shall
consult with the Secretary of Energy.
(h) 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 2007.
SEC. 9004. BIODIESEL FUEL EDUCATION PROGRAM.
(a) ESTABLISHMENT- The Secretary shall, under such terms and conditions as
are appropriate, make competitive grants to eligible entities to educate
governmental 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.
(b) ELIGIBLE ENTITIES- To receive a grant under subsection (a), an
entity--
(1) shall be a nonprofit organization or institution of higher education
(as defined in section 101 of the Higher Education Act of 1965 (20 U.S.C.
1001));
(2) shall have demonstrated knowledge of biodiesel fuel production, use,
or distribution; and
(3) shall have demonstrated the ability to conduct educational and
technical support programs.
(c) CONSULTATION- In carrying out this section, the Secretary shall
consult with the Secretary of Energy.
(d) FUNDING- Of the funds of the Commodity Credit Corporation, the
Secretary shall make available to carry out this section $1,000,000 for each
of fiscal years 2003 through 2007.
SEC. 9005. ENERGY AUDIT AND RENEWABLE ENERGY DEVELOPMENT PROGRAM.
(a) IN GENERAL- The Secretary shall make competitive grants to eligible
entities to carry out a program to assist farmers, ranchers, and rural small
businesses in becoming more energy efficient and in using renewable energy
technology and resources.
(b) ELIGIBLE ENTITIES- Entities eligible to carry out a program under
subsection (a) are--
(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 institution of higher education (as defined
in section 101 of the Higher Education Act of 1965 (20 U.S.C. 1001));
(4) a rural electric cooperative or utility;
(5) a nonprofit organization; and
(6) any other entity, as determined by the Secretary.
(1) MERIT REVIEW PROCESS- The Secretary shall establish a merit review
process to review applications for grants under subsection (a) that uses the
expertise of other Federal agencies, industry, and nongovernmental
organizations.
(2) SELECTION CRITERIA- In reviewing applications of eligible entities
to receive grants under subsection (a), the Secretary 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.
(1) REQUIRED USES- A recipient of a grant under subsection (a) shall use
the grant funds to conduct and promote energy audits for farmers, ranchers,
and rural small businesses to provide farmers, ranchers, and rural small
businesses recommendations on how to improve energy efficiency and use
renewable energy technology and resources.
(2) PERMITTED USES- In addition to the uses described in paragraph (1),
a recipient of a grant may use the grant funds to make farmers, ranchers,
and rural small businesses aware of, and ensure that they have access
to--
(A) financial assistance under section 9006; and
(B) other Federal, State, and local financial assistance programs for
which farmers, ranchers, and rural small businesses may be
eligible.
(e) COST SHARING- 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 of the energy audit, the
farmer, rancher, or rural small business pay at least 25 percent of the cost
of the audit.
(f) USE OF COST-SHARE FUNDS- Funds collected by a recipient of a grant
under subsection (e) as a result of activities carried out using the grant
funds shall be used to conduct activities authorized under this section, as
approved by the Secretary.
(g) CONSULTATION- In carrying out this section, the Secretary shall
consult with the Secretary of Energy.
(h) REPORTS- Not later than 4 years after the date of enactment of this
Act, the Secretary shall submit to Congress a report on the implementation of
this section.
(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 2007.
SEC. 9006. 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- To be eligible to receive a grant under subsection (a), a
farmer, rancher, or rural small business shall demonstrate financial need as
determined by the Secretary.
(A) GRANTS- The amount of a grant shall not exceed 25 percent of the
cost of the activity funded under subsection (a).
(B) MAXIMUM AMOUNT OF COMBINED GRANT AND LOAN- The combined amount of
a grant and loan made or guaranteed shall not exceed 50 percent of the
cost of the activity funded under subsection (a).
(2) FACTORS- In determining the amount of a grant or loan, the Secretary
shall take into consideration, as applicable--
(A) the type of renewable energy system to be purchased;
(B) the estimated quantity of energy to be generated by the renewable
energy system;
(C) the expected environmental benefits of the renewable energy
system;
(D) the extent to which the renewable energy system will be
replicable;
(E) the amount of energy savings expected to be derived from the
activity, as demonstrated by an energy audit comparable to an energy audit
under section 9005;
(F) the estimated length of time it would take for the energy savings
generated by the activity to equal the cost of the activity; and
(G) other factors as appropriate.
(1) IN GENERAL- A loan made by the Secretary under subsection (a) shall
bear interest at the rate equivalent to the rate of interest charged on
Treasury securities of comparable maturity on the date the loan is
approved.
(2) DURATION- The interest rate for each loan will remain in effect for
the term of the loan.
(e) CONSULTATION- In carrying out this section, the Secretary shall
consult with the Secretary of Energy.
(f) FUNDING- Of the funds of the Commodity Credit Corporation, the
Secretary shall make available to carry out this section $23,000,000 for each
of fiscal years 2003 through 2007.
SEC. 9007. HYDROGEN AND FUEL CELL TECHNOLOGIES.
(a) IN GENERAL- The Secretary and the Secretary of Energy shall enter into
a memorandum of understanding under which the Secretary and the Secretary of
Energy shall cooperate in the application of hydrogen and fuel cell technology
programs for rural communities and agricultural producers.
(b) DISSEMINATION OF INFORMATION- Under the memorandum of understanding,
the Secretary shall work with the Secretary of Energy to disseminate
information to rural communities and agricultural producers on potential
applications of hydrogen and fuel cell technologies.
SEC. 9008. BIOMASS RESEARCH AND DEVELOPMENT.
(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) FUNDING- Of funds of the Commodity Credit Corporation, the Secretary
shall make available to carry out this title--
`(1) $5,000,000 for fiscal year 2002; and
`(2) $14,000,000 for each of fiscal years 2003 through 2007;
to remain available until expended.
`(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 2007.'.
(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, 2007'.
SEC. 9009. COOPERATIVE RESEARCH AND EXTENSION PROJECTS.
Section 221 of the Agricultural Risk Protection Act of 2000 (114 Stat.
407) is amended--
(1) by redesignating subsection (d) as subsection (f); and
(2) by inserting after subsection (c) the following:
`(d) COOPERATIVE RESEARCH-
`(1) IN GENERAL- Subject to the availability of appropriations, the
Secretary, in cooperation with departments and agencies participating in the
U.S. Global Change Research Program (which may use any of their statutory
authorities) and with eligible entities, may carry out research to promote
understanding of--
`(A) the flux of carbon in soils and plants (including trees);
and
`(B) the exchange of other greenhouse gases from agriculture.
`(2) ELIGIBLE ENTITIES- Research under this subsection may be carried
out through the competitive awarding of grants and cooperative agreements to
colleges and universities (as defined in section 1404 of the National
Agricultural Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C.
1303)).
`(3) COOPERATIVE RESEARCH PURPOSES- Research conducted under this
subsection shall encourage collaboration among scientists with expertise in
the areas of soil science, agronomy, agricultural economics, forestry, and
other agricultural sciences to focus on--
`(A) developing data addressing carbon losses and gains in soils and
plants (including trees) and the exchange of methane and nitrous oxide
from agriculture;
`(B) understanding how agricultural and forestry practices affect the
sequestration of carbon in soils and plants (including trees) and the
exchange of other greenhouse gases, including the effects of new
technologies such as biotechnology and nanotechnology;
`(C) developing cost-effective means of measuring and monitoring
changes in carbon pools in soils and plants (including trees), including
computer models;
`(D) evaluating the linkage between federal conservation programs and
carbon sequestration;
`(E) developing methods, including remote sensing, to measure the
exchange of carbon and other greenhouse gases sequestered, and to evaluate
leakage, performance, and permanence issues; and
`(F) assessing the applicability of the results of research conducted
under this subsection for developing methods to account for the impact of
agricultural activities (including forestry) on the exchange of greenhouse
gases.
`(4) AUTHORIZATION OF APPROPRIATION- There are authorized to be
appropriated such sums as are necessary to carry out this subsection for
each of fiscal years 2002 through 2007.
`(1) IN GENERAL- The Secretary, in cooperation with departments and
agencies participating in the U.S. Global Change Research Program (which may
use any of their statutory authorities), and local extension agents, experts
from institutions of higher education that offer a curriculum in
agricultural and biological sciences, and other local agricultural or
conservation organizations, may implement extension projects (including
on-farm projects with direct involvement of agricultural producers) that
combine measurement tools and modeling techniques into integrated packages
to monitor the carbon sequestering benefits of conservation practices and
the exchange of greenhouse gas emissions from agriculture which demonstrate
the feasibility of methods of measuring and monitoring--
`(A) changes in carbon content and other carbon pools in soils and
plants (including trees); and
`(B) the exchange of other greenhouse gases.
`(2) EXTENSION PROJECT RESULTS- The Secretary may disseminate to
farmers, ranchers, private forest landowners, and appropriate State agencies
in each State information concerning--
`(A) the results of projects under this subsection; and
`(B) the manner in which the methods used in the projects might be
applicable to the operations of the farmers, ranchers, private forest
landowners, and State agencies.
`(3) AUTHORIZATION OF APPROPRIATIONS- There are authorized to be
appropriated such sums as are necessary to carry out this subsection for
each of fiscal years 2002 through 2007.'.
SEC. 9010. CONTINUATION OF BIOENERGY PROGRAM.
(a) DEFINITIONS- In this section:
(1) BIOENERGY- The term `bioenergy' means--
(2) BIODIESEL- The term `biodiesel' means a monoalkyl ester that meets
the requirements of an appropriate American Society for Testing and
Materials standard.
(3) ELIGIBLE COMMODITY- The term `eligible commodity' means--
(A) wheat, corn, grain sorghum, barley, oats, rice, soybeans,
sunflower seed, rapeseed, canola, safflower, flaxseed, mustard, crambe,
sesame seed, and cottonseed;
(B) a cellulosic commodity (such as hybrid poplar and switch
grass);
(C) fats, oils, and greases (including recycled fats, oils, and
greases) derived from an agricultural product; and
(D) any animal byproduct (in addition to oils, fats, and greases) that
may be used to produce bioenergy, as determined by the Secretary.
(4) ELIGIBLE PRODUCER- The term `eligible producer' means a producer
that uses an eligible commodity to produce bioenergy.
(1) CONTINUATION- The Secretary shall continue the program under part
1424 of title 7, Code of Federal Regulations (or any successor regulation),
under which the Secretary makes payments to eligible producers to encourage
increased purchases of eligible commodities for the purpose of expanding
production of such bioenergy and supporting new production capacity for such
bioenergy.
(2) CONTRACTS- To be eligible to receive a payment, an eligible producer
shall--
(A) enter into a contract with the Secretary to increase bioenergy
production for 1 or more fiscal years; and
(B) submit to the Secretary such records as the Secretary may require
as evidence of increased purchase and use of eligible commodities for the
production of bioenergy.
(A) IN GENERAL- Under the program, the Secretary shall make payments
to eligible producers, based on the quantity of bioenergy produced by the
eligible producer during a fiscal year that exceeds the quantity of
bioenergy produced by the eligible producer during the preceding fiscal
year.
(i) PRODUCERS OF LESS THAN 65,000,000 GALLONS- An eligible producer
that produces less than 65,000,000 gallons of bioenergy shall be
reimbursed 1 feedstock unit for every 2.5 feedstock units of eligible
commodity used for increased production.
(ii) PRODUCERS OF 65,000,000 OR MORE GALLONS- An eligible producer
that produces 65,000,000 or more gallons of bioenergy shall be
reimbursed 1 feedstock unit for every 3.5 feedstock units of eligible
commodity used for increased production.
(C) QUARTERLY PAYMENTS- The Secretary shall make payments to an
eligible producer for each quarter of the fiscal year.
(4) PRORATION- If the amount made available for a fiscal year under
subsection (c) is insufficient to allow the payment of the amount of the
payments that eligible producers (that apply for the payments) otherwise
would receive under this subsection, the Secretary shall prorate the amount
of the funds among all such eligible producers.
(5) OVERPAYMENTS- If the total amount of payments that an eligible
producer receives for a fiscal year under this section exceeds the amount
that the eligible producer should have received under this subsection, the
eligible producer shall repay the amount of the overpayment to the
Secretary, with interest (as determined by the Secretary).
(6) LIMITATION- No eligible producer shall receive more than 5 percent
of the total amount made available under subsection (c) for a fiscal
year.
(7) OTHER REQUIREMENTS- To be eligible to receive a payment under this
subsection, an eligible producer shall meet other requirements of Federal
law (including regulations) applicable to the production of bioenergy.
(c) FUNDING- Of the funds of the Commodity Credit Corporation, the
Secretary shall use to carry out this section--
(1) not more than $150,000,000 for each of fiscal years 2003 through
2006; and
(2) $0 for fiscal year 2007.
TITLE X--MISCELLANEOUS
Subtitle A--Crop Insurance
SEC. 10001. 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. 10002. 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. 10003. QUALITY LOSS ADJUSTMENT PROCEDURES.
Section 508(m) of the Federal Crop Insurance Act (7 U.S.C. 1508(m)) is
amended--
(A) by striking `The Corporation' and inserting the
following:
`(A) REVIEW- The Corporation'; and
(B) by striking `Based on' and inserting the following:
`(B) PROCEDURES- Effective beginning not later than the 2004
reinsurance year, based on'; and
(2) by adding at the end the following:
`(4) QUALITY OF AGRICULTURAL COMMODITIES DELIVERED TO WAREHOUSE
OPERATORS- In administering this title, the Secretary shall accept, in the
same manner and under the same terms and conditions, evidence of the quality
of agricultural commodities delivered to--
`(A) warehouse operators that are licensed under the United States
Warehouse Act (7 U.S.C. 241 et seq.);
`(B) warehouse operators that--
`(i) are licensed under State law; and
`(ii) have entered into a storage agreement with the Commodity
Credit Corporation; and
`(C) warehouse operators that--
`(i) are not licensed under State law but are in compliance with
State law regarding warehouses; and
`(ii) have entered into a commodity storage agreement with the
Commodity Credit Corporation.'.
SEC. 10004. 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 of California and
at least 8 counties in the State of Pennsylvania.
`(B) SELECTION CRITERIA- In carrying out subparagraph (A), the
Corporation shall work with the respective State Departments of
Agriculture to establish criteria to determine which counties to include
in the pilot program.'.
SEC. 10005. SENSE OF CONGRESS ON EXPANSION OF CROP INSURANCE COVERAGE.
It is the sense of Congress that the Federal Crop Insurance Corporation
should address needs of producers through the expansion of pilot programs and
coverage under the Federal Crop Insurance Act (7 U.S.C. 1501 et seq.),
including--
(1) crop revenue insurance for the producers of pecans in the State of
Georgia; and
(2) coverage for continuous crops of wheat produced in the State of
Kansas.
SEC. 10006. REPORT ON SPECIALTY CROP INSURANCE.
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--
(1) the progress made by the Federal Crop Insurance 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; and
(2) 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.
Subtitle B--Disaster Assistance
SEC. 10101. REFERENCE TO SEA GRASS AND SEA OATS AS CROPS COVERED BY
NONINSURED CROP DISASTER ASSISTANCE PROGRAM.
Section 196(a)(2)(B) of the Federal Agriculture Improvement and Reform Act
of 1996 (7 U.S.C. 7333(a)(2)(B)) is amended by inserting `sea grass and sea
oats,' after `fish),'.
SEC. 10102. EMERGENCY GRANTS TO ASSIST LOW-INCOME MIGRANT AND SEASONAL
FARMWORKERS.
Section 2281(a) of the Food, Agriculture, Conservation, and Trade Act of
1990 (42 U.S.C. 5177a(a)) is amended by striking `, not to exceed $20,000,000
annually,'.
SEC. 10103. 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 `36 months'.
SEC. 10104. ASSISTANCE FOR LIVESTOCK PRODUCERS.
(a) AVAILABILITY OF ASSISTANCE- In such amounts as are provided in advance
in appropriation Acts, the Secretary of Agriculture may provide assistance to
dairy and other livestock producers to cover economic losses incurred by such
producers in connection with the production of livestock.
(b) TYPES OF ASSISTANCE- The assistance provided to livestock producers
may be in the following forms:
(1) Indemnity payments to livestock producers who incur livestock
mortality losses.
(2) Livestock feed assistance to livestock producers affected by
shortages of feed.
(3) Compensation for sudden increases in production costs.
(4) Such other assistance, and for such other economic losses, as the
Secretary considers appropriate.
(c) LIMITATIONS- The Secretary may not use the funds of the Commodity
Credit Corporation to provide assistance under this section.
(d) AUTHORIZATION OF APPROPRIATIONS- There is authorized to be
appropriated to the Secretary such sums as may be necessary to carry out this
section.
SEC. 10105. MARKET LOSS ASSISTANCE FOR APPLE PRODUCERS.
(a) IN GENERAL- Of the funds of the Commodity Credit Corporation, the
Secretary of Agriculture shall use $94,000,000 for fiscal year 2002 to make
payments, as soon as practicable after the date of enactment of this Act, to
apple producers for the loss of markets during the 2000 crop year.
(b) PAYMENT QUANTITY- The payment quantity of apples for which the
producers on a farm are eligible for payments under this section shall be
equal to the lesser of--
(1) the quantity of the 2000 crop of apples produced by the producers on
the farm; or
(2) 5,000,000 pounds of apples produced on the farm.
(c) LIMITATIONS- Subject to subsection (b)(2), the Secretary shall not
establish a payment limitation, or income eligibility limitation, with respect
to payments made under this section.
(1) IN GENERAL- The Secretary shall promulgate such regulations as are
necessary to implement this section.
(2) PROCEDURE- The promulgation of the regulations and administration of
this section shall be made without regard to--
(A) the notice and comment provisions of section 553 of title 5,
United States Code;
(B) 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
(C) chapter 35 of title 44, United States Code (commonly known as the
`Paperwork Reduction Act').
(3) CONGRESSIONAL REVIEW OF AGENCY RULEMAKING- In carrying out this
subsection, the Secretary shall use the authority provided under section 808
of title 5, United States Code.
SEC. 10106. MARKET LOSS ASSISTANCE FOR ONION PRODUCERS.
The Secretary of Agriculture shall use $10,000,000 of the funds of the
Commodity Credit Corporation to make a grant to the State of New York to be
used to support onion producers in Orange County, New York, that have suffered
losses to onion crops during 1 or more of the 1996 through 2000 crop years.
SEC. 10107. COMMERCIAL FISHERIES FAILURE.
(a) IN GENERAL- The Secretary of Agriculture, in consultation with the
Secretary of Commerce, shall provide 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 to carry out 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 REGULATIONS- The program shall be carried out in
accordance with the regulations codified at part 648 of title 50, Code of
Federal Regulations, and any corresponding rule issued in accordance with the
regulations.
(d) AUTHORIZATION OF APPROPRIATIONS- There are authorized to be
appropriated such sums as are necessary to carry out this section.
(e) TERMINATION OF AUTHORITY- The authority provided under this section
terminates on the date that is 1 year after the date of enactment of this
Act.
SEC. 10108. 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 caused primarily by 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 restricting access to irrigation
water, including any lack of access to an adequate supply of water caused by
failure by the Secretary of the Interior to fulfill a contract in accordance
with the Central Valley Project Improvement Act (106 Stat. 4706).
(c) REPORT- Not later than 150 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 that describes the results of the study, including any
recommendations.
Subtitle C--Tree Assistance Program
SEC. 10201. DEFINITIONS.
(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, lightning, and
other occurrence, as determined by the Secretary.
(3) SECRETARY- The term `Secretary' means the Secretary of
Agriculture.
(4) TREE- The term `tree' includes a tree, bush, and vine.
SEC. 10202. ELIGIBILITY.
(a) LOSS- Subject to subsection (b), the Secretary shall provide
assistance under section 10203 to eligible orchardists that planted trees for
commercial purposes but lost the trees as a result of a natural disaster, as
determined by the Secretary.
(b) LIMITATION- An eligible orchardist shall qualify for assistance under
subsection (a) only if the tree mortality of the eligible orchardist, as a
result of damaging weather or related condition, exceeds 15 percent (adjusted
for normal mortality).
SEC. 10203. ASSISTANCE.
Subject to section 10204, the assistance provided by the Secretary to
eligible orchardists for losses described in section 10202 shall consist
of--
(1) 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
(2) at the option of the Secretary, sufficient seedlings to reestablish
a stand.
SEC. 10204. LIMITATIONS ON ASSISTANCE.
(a) AMOUNT- The total amount of payments that a person shall be entitled
to receive under this subtitle may not exceed $75,000, or an equivalent value
in tree seedlings.
(b) ACRES- The total quantity of acres planted to trees or tree seedlings
for which a person shall be entitled to receive payments under this subtitle
may not exceed 500 acres.
(c) REGULATIONS- The Secretary shall promulgate regulations--
(1) defining the term `person' for the purposes of this subtitle, which
shall conform, to the maximum 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
(2) promulgating such regulations as the Secretary determines necessary
to ensure a fair and reasonable application of the limitation established
under this section.
SEC. 10205. AUTHORIZATION OF APPROPRIATIONS.
There are authorized to be appropriated such sums as are necessary to
carry out this subtitle.
Subtitle D--Animal Welfare
SEC. 10301. DEFINITION OF ANIMAL UNDER THE ANIMAL WELFARE ACT.
Section 2(g) of the Animal Welfare Act (7 U.S.C. 2132(g)) is amended in
the first sentence by striking `excludes horses not used for research purposes
and' and inserting the following: `excludes (1) birds, rats of the genus
Rattus, and mice of the genus Mus, bred for use in research, (2) horses not
used for research purposes, and (3)'.
SEC. 10302. PROHIBITION ON INTERSTATE MOVEMENT OF ANIMALS FOR ANIMAL
FIGHTING.
(a) IN GENERAL- Section 26 of the Animal Welfare Act (7 U.S.C. 2156) is
amended--
(1) by striking subsection (a) and inserting the following:
`(a) SPONSORING OR EXHIBITING AN ANIMAL IN AN ANIMAL FIGHTING VENTURE-
`(1) IN GENERAL- Except as provided in paragraph (2), it shall be
unlawful for any person to knowingly sponsor or exhibit an animal in an
animal fighting venture, if any animal in the venture was moved in
interstate or foreign commerce.
`(2) SPECIAL RULE FOR CERTAIN STATES- With respect to fighting ventures
involving live birds in a State where it would not be in violation of the
law, it shall be unlawful under this subsection for a person to sponsor or
exhibit a bird in the fighting venture only if the person knew that any bird
in the fighting venture was knowingly bought, sold, delivered, transported,
or received in interstate or foreign commerce for the purpose of
participation in the fighting venture.';
(2) in subsection (b), by striking `or deliver to another person or
receive from another person' and inserting `deliver, or receive'; and
(3) in subsection (d), by striking `subsections (a), (b), or (c) of this
section' and inserting `subsection (c)'.
(b) EFFECTIVE DATE- The amendments made by this section take effect 1 year
after the date of enactment of this Act.
SEC. 10303. PENALTIES AND FOREIGN COMMERCE PROVISIONS OF THE ANIMAL WELFARE
ACT.
(a) IN GENERAL- Section 26 of the Animal Welfare Act (7 U.S.C. 2156) is
amended--
(A) by inserting `PENALTIES- ' after `(e)'; and
(B) by striking `$5,000' and inserting `$15,000'; and
(2) in subsection (g)(2)(B), by inserting before the semicolon at the
end the following: `or from any State into any foreign country'.
(b) EFFECTIVE DATE- The amendment made by this section takes effect 1 year
after the date of enactment of this Act.
SEC. 10304. REPORT ON RATS, MICE, AND BIRDS.
(a) IN GENERAL- Not later than 1 year after the date of enactment of this
Act, the National Research Council 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
regulations promulgated under the Animal Welfare Act (7 U.S.C. 2131 et
seq.).
(b) REQUIREMENTS- The report under subsection (a) shall--
(1) be completed with input, consultation, and recommendations
from--
(A) the Secretary of Agriculture;
(B) the Secretary of Health and Human Services; and
(C) the Institute for Animal Laboratory Research within the National
Academy of Sciences;
(2) contain an estimate of--
(A) the number and types of entities that use rats, mice, and birds
for research purposes; and
(B) which of the entities--
(i) are subject to regulations of the Department of
Agriculture;
(ii) are subject to regulations or guidelines of the Department of
Health and Human Services; or
(iii) voluntarily comply with the accreditation requirements of the
Association for Assessment and Accreditation of Laboratory Animal
Care;
(3) contain an estimate of the numbers of rats, mice, and birds used in
research facilities, with an indication of which of the facilities--
(A) are subject to regulations of the Department of
Agriculture;
(B) are subject to regulations or guidelines of the Department of
Health and Human Services; or
(C) voluntarily comply with the accreditation requirements of the
Association for Assessment and Accreditation of Laboratory Animal
Care;
(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 level of protection to rats,
mice, and birds as is provided for species regulated by the Department of
Agriculture, detailing the costs associated with individual regulatory
requirements;
(5) contain recommendations for minimizing such costs, including--
(A) an estimate of the cost savings that would result from providing a
different level of protection to rats, mice, and birds than is provided
for species regulated by the Department of Agriculture; and
(B) an estimate of the cost savings that would result if new
regulatory requirements were substantially equivalent to, and harmonized
with, guidelines of the National Institutes of Health;
(6) 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 if a rule extending the regulatory definition of animal to rats,
mice, and birds were to become effective; and
(7) contain recommendations for--
(A) minimizing the regulatory burden on facilities subject
to--
(i) regulations of the Department of Agriculture;
(ii) regulations or guidelines of the Department of Health and Human
Services; or
(iii) accreditation requirements of the Association for Assessment
and Accreditation of Laboratory Animal Care; and
(B) preventing any duplication of regulatory requirements.
SEC. 10305. ENFORCEMENT OF HUMANE METHODS OF SLAUGHTER ACT OF 1958.
(a) SENSE OF CONGRESS- It is the sense of Congress that the Secretary of
Agriculture should--
(1) continue tracking the number of violations of Public Law 85-765 (7
U.S.C. 1901 et seq.; commonly known as the `Humane Methods of Slaughter Act
of 1958') and report the results and relevant trends annually to Congress;
and
(2) fully enforce Public Law 85-765 by ensuring that humane methods in
the slaughter of livestock--
(A) prevent needless suffering;
(B) result in safer and better working conditions for persons engaged
in slaughtering operations;
(C) bring about improvement of products and economies in slaughtering
operations; and
(D) 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.
(b) UNITED STATES POLICY- It is 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, as provided by Public
Law 85-765.
Subtitle E--Animal Health Protection
SEC. 10401. SHORT TITLE.
This subtitle may be cited as the `Animal Health Protection Act'.
SEC. 10402. 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. 10403. 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' has the meaning given the term by the
Secretary.
(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.
(K) 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. 10404. RESTRICTION ON IMPORTATION OR ENTRY.
(a) IN GENERAL- With notice to the Secretary of the Treasury and public
notice as soon as practicable, 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.
(1) RESTRICTIONS ON IMPORT AND ENTRY- The Secretary may issue such
orders and promulgate such regulations as are necessary to carry out
subsection (a).
(2) POST IMPORTATION QUARANTINE- 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. 10405. 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. 10406. 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. 10407. 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- The determination by the Secretary of the amount to
be paid under this subsection shall be final and not subject to judicial
review or review of longer than 60 days by any officer or employee of the
Federal Government other than the Secretary or the designee of the
Secretary.
(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. 10408. 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 10407(b), on probable cause to believe that the
person or means of conveyance is carrying any animal or article quarantined
under section 10407(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. 10409. 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.
(1) IN GENERAL- 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.
(2) REVIEWABILITY- The action of the Secretary in carrying out paragraph
(1) shall not be subject to review of longer than 60 days by any officer or
employee of the Federal Government other than the Secretary or the designee
of the Secretary.
SEC. 10410. 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 and veterinary professionals regarding the establishment of the
veterinary accreditation program.
(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 title who 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- The Secretary may summarily suspend the accreditation
of a veterinarian whom the Secretary has reason to believe knowingly
violated this subtitle.
(B) HEARINGS- The Secretary shall provide the veterinarian with a
subsequent notice and an opportunity for a prompt post-suspension hearing
on the record.
(d) APPLICATION OF PENALTY PROVISIONS- The criminal and civil penalties
described in section 10414 shall not apply to a violation of this section that
is not a violation of any other provision of this subtitle.
SEC. 10411. 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 AND COORDINATION WITH OTHER FEDERAL AGENCIES-
(1) IN GENERAL- The Secretary shall consult and coordinate with the head
of a Federal agency with respect to any activity that is under the
jurisdiction of the Federal agency.
(2) LEAD AGENCY- Subject to the consultation and coordination
requirement in paragraph (1), the Department of Agriculture shall be the
lead agency with respect to issues related to pests and diseases of
livestock.
SEC. 10412. 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. 10413. 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. 10414. PENALTIES.
(A) IN GENERAL- A person that knowingly violates this subtitle, or
knowingly forges, counterfeits, or, without authority from the Secretary,
uses, alters, defaces, or destroys any certificate, permit, or other
document provided for in this subtitle shall be fined under title 18,
United States Code, imprisoned not more than 1 year, or both.
(B) DISTRIBUTION OR SALE- A person that knowingly imports, enters,
exports, or moves any animal or article, for distribution or sale, in
violation of this subtitle, shall be fined under title 18, United States
Code, imprisoned not more than 5 years, or both.
(2) MULTIPLE VIOLATIONS- On the second and any subsequent conviction of
a person of a violation of this subtitle under paragraph (1), the person
shall be fined under title 18, United States Code, imprisoned not more than
10 years, or both.
(1) IN GENERAL- Except as provided in section 10410(d), 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) 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.
(d) GUIDELINES FOR CIVIL PENALTIES- Subject to the approval of the
Attorney General, the Secretary shall 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. 10415. 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 sections 10410(c)
and 10414(b).
SEC. 10416. REGULATIONS AND ORDERS.
The Secretary may promulgate such regulations, and issue such orders, as
the Secretary determines necessary to carry out this subtitle.
SEC. 10417. 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.
(3) REVIEWABILITY- The action of any officer, employee, or agent of the
Secretary in carrying out this section (including determining the amount of
and making any payment authorized to be made under this subtitle) shall not
be subject to review of longer than 60 days by any officer or employee of
the Federal Government other than the Secretary or the designee of the
Secretary.
(c) USE OF FUNDS- In carrying out this subtitle, the Secretary may use
funds made available to carry out this subtitle for--
(1) the employment of civilian nationals in foreign countries; and
(2) the construction and operation of research laboratories, quarantine
stations, and other buildings and facilities for special purposes.
SEC. 10418. 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) 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).
(13) The first section and sections 2, 3, 4, and 6 of the Act of March
3, 1905 (21 U.S.C. 123 through 127).
(14) 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).
(15) 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).
(16) The third paragraph under the heading `MISCELLANEOUS' of the Act of
May 26, 1910 (21 U.S.C. 131).
(17) The first section and sections 2 through 6 and 11 through 13 of
Public Law 87-518 (21 U.S.C. 134 through 134h).
(18) Public Law 91-239 (21 U.S.C. 135 through 135b).
(19) Sections 12 through 14 of the Federal Meat Inspection Act (21
U.S.C. 612 through 614).
(20) 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 10404(b) or 10416 that supersedes the earlier
regulation.
Subtitle F--Livestock
SEC. 10501. TRANSPORTATION OF POULTRY AND OTHER ANIMALS.
Section 5402(d)(2) of title 39, United States Code, is amended--
(1) in subparagraph (A), by inserting `, honeybees,' after `poultry';
and
(2) by striking subparagraph (C).
SEC. 10502. SWINE CONTRACTORS.
(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) SWINE CONTRACTOR- The term `swine contractor' means any person
engaged in the business of obtaining swine under a swine production contract
for the purpose of slaughtering the swine or selling the swine for
slaughter, if--
`(A) the swine is obtained by the person in commerce; or
`(B) the swine (including products from the swine) obtained by the
person is sold or shipped in commerce.
`(13) SWINE PRODUCTION CONTRACT- The term `swine production contract'
means any growout contract or other arrangement under which a swine
production contract grower raises and cares for the swine in accordance with
the instructions of another person.
`(14) SWINE PRODUCTION CONTRACT GROWER- The term `swine production
contract grower' means any person engaged in the business of raising and
caring for swine 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 swine 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 `, swine 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 swine 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 swine contractor, and'
after `packer,' each place it appears.
SEC. 10503. RIGHT TO DISCUSS TERMS OF CONTRACT.
(a) DEFINITIONS- In this section:
(1) PRODUCER- The term `producer' means any person engaged in the
raising and caring for livestock or poultry for slaughter.
(2) PROCESSOR- The term `processor' means any person engaged in the
business of obtaining livestock or poultry for the purpose of slaughtering
the livestock or poultry.
(b) NO PROHIBITION OF DISCUSSION- Notwithstanding a provision in any
contract between a producer and a processor for the production of livestock or
poultry, or in any marketing agreement between a producer and a processor for
the sale of livestock or poultry for a term of 1 year or more, 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 the
contract with--
(1) a Federal or State agency;
(2) a legal adviser to the party;
(3) a lender to the party;
(4) an accountant hired by the party;
(5) an executive or manager of the party;
(6) a landlord of the party; or
(7) a member of the immediate family of the party.
(c) EFFECT ON STATE LAWS- Subsection (b) does not--
(1) preempt any State law that addresses confidentiality provisions in
contracts for the sale or production of livestock or poultry, except any
provision of State law that makes lawful a contract provision that prohibits
a party from, or limits a party in, engaging in discussion that subsection
(b) requires to be permitted; or
(2) deprive any State court of jurisdiction under any such State
law.
(d) APPLICABILITY- This section applies to each contract described in
subsection (b) that is entered into, amended, renewed, or extended after the
date of enactment of this Act.
SEC. 10504. VETERINARY TRAINING.
The Secretary of Agriculture may 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.
SEC. 10505. 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
`2007'.
Subtitle G--Specialty Crops
SEC. 10601. 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. 10602. AVAILABILITY OF SECTION 32 FUNDS.
The second undesignated paragraph of section 32 of the Act of August 24,
1935 (7 U.S.C. 612c), is amended by striking `$300,000,000' and inserting
`$500,000,000'.
SEC. 10603. PURCHASE OF SPECIALTY CROPS.
(a) GENERAL PURCHASE AUTHORITY- Of the funds made available under section
32 of the Act of August 24, 1935 (7 U.S.C. 612c), for fiscal year 2002 and
each subsequent fiscal year, the Secretary of Agriculture shall use not less
than $200,000,000 each fiscal year to purchase fruits, vegetables, and other
specialty food crops.
(1) PURCHASE- Of the amount specified in subsection (a), the Secretary
of Agriculture shall use not less than $50,000,000 each fiscal year for the
purchase of 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)).
(2) SERVICING AGENCY- The Secretary of Agriculture shall provide for the
Secretary of Defense to serve as the servicing agency for the procurement of
the fresh fruits and vegetables under this subsection on the same terms and
conditions as provided in the memorandum of agreement entered into between
the Agricultural Marketing Service, the Food and Consumer Service, and the
Defense Personnel Support Center during August 1995 (or any successor
memorandum of agreement).
(c) DEFINITIONS- In this section, the terms `fruits', `vegetables', and
`other specialty food crops' shall have the meaning given the terms by the
Secretary of Agriculture.
SEC. 10604. PROTECTION FOR PURCHASERS OF FARM PRODUCTS.
(a) DEFINITION OF EFFECTIVE FINANCING STATEMENT- Section 1324(c)(4) of the
Food Security Act of 1985 (7 U.S.C. 1631(c)(4)) is amended--
(1) in subparagraph (B), by striking `signed' and inserting `signed,
authorized, or otherwise authenticated by the debtor,';
(2) by striking subparagraph (C);
(3) in subparagraph (D)--
(A) in clause (iii), by adding `and' after the semicolon at the end;
and
(B) 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 produced or located;';
(4) in subparagraph (E), by striking `signed' and inserting `signed,
authorized, or otherwise authenticated by the debtor';
(5) in subparagraph (G), by striking `notice signed' and inserting
`notice signed, authorized, or otherwise authenticated'; and
(6) by redesignating subparagraphs (D) through (I) as subparagraphs (C)
through (H), respectively.
(b) PURCHASES SUBJECT TO SECURITY INTERESTS- Section 1324(e) of the Food
Security Act of 1985 (7 U.S.C. 1631(e)) is amended--
(1) in paragraph (1)(A)(ii)--
(A) in subclause (III), by adding `and' after the semicolon at the
end; and
(B) 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 produced or located;';
(2) in paragraph (1)(A)(iii), by striking `similarly signed' and
inserting `similarly signed, authorized, or otherwise authenticated';
(3) in paragraph (1)(A)(iv), by striking `notice signed' and inserting
`notice signed, authorized, or otherwise authenticated';
(4) in paragraph (1)(A)(v), by inserting `contains' before `any
payment'; and
(A) in subparagraph (A), by striking `subparagraph' and inserting
`subsection'; and
(B) in subparagraph (B), by striking `; and' and inserting a
period.
(c) CERTAIN SALES SUBJECT TO SECURITY INTEREST- Section 1324(g)(2)(A) of
the Food Security Act of 1985 (7 U.S.C. 1631(g)(2)(A)) is amended--
(A) in subclause (III), by adding `and' after the semicolon at the
end; and
(B) 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 produced or located;';
(2) in clause (iii), by striking `similarly signed' and inserting
`similarly signed, authorized, or otherwise authenticated';
(3) in clause (iv), by striking `notice signed' and inserting `notice
signed, authorized, or otherwise authenticated'; and
(4) in clause (v), by inserting `contains' before `any payment'.
SEC. 10605. FARMERS' MARKET PROMOTION PROGRAM.
(a) IN GENERAL- The Farmer-to-Consumer Direct Marketing Act of 1976 is
amended by inserting after section 5 (7 U.S.C. 3004) 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.
`(1) IN GENERAL- The purposes of the Program are--
`(A) 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 market
opportunities; and
`(B) to develop, or aid in the development of, new farmers' markets,
roadside stands, community-supported agriculture programs, and other
direct producer-to-consumer infrastructure.
`(2) LIMITATIONS- An eligible entity may not use a grant or other
assistance provided under the Program for the purchase, construction, or
rehabilitation of a building or structure.
`(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.
`(e) 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 2007.'.
(b) TECHNICAL AND CONFORMING AMENDMENTS-
(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.'.
SEC. 10606. 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 $5,000,000 for fiscal year 2002, to remain available until expended,
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. 10607. EXEMPTION OF CERTIFIED ORGANIC PRODUCTS FROM ASSESSMENTS.
(a) IN GENERAL- Section 501 of the Federal Agriculture Improvement and
Reform Act of 1996 (7 U.S.C. 7401) is amended by adding at the end the
following:
`(e) EXEMPTION OF CERTIFIED ORGANIC PRODUCTS FROM ASSESSMENTS-
`(1) IN GENERAL- Notwithstanding any provision of a commodity promotion
law, a person that produces and markets solely 100 percent organic products,
and that does not produce any conventional or nonorganic products, shall be
exempt from the payment of an assessment under a commodity promotion law
with respect to any agricultural commodity that is produced on a certified
organic farm (as defined in section 2103 of the Organic Foods Production Act
of 1990 (7 U.S.C. 6502)).
`(2) REGULATIONS- Not later than 1 year after the date of enactment of
this subsection, the Secretary shall promulgate regulations concerning
eligibility and compliance for an exemption under paragraph (1).'.
(b) TECHNICAL AMENDMENTS- Section 501(a) of the Federal Agriculture
Improvement and Reform Act of 1996 (7 U.S.C. 7401(a)) is amended--
(1) in paragraph (17), by striking `or';
(2) in paragraph (18), by striking the period and inserting `; or';
and
(3) by adding at the end the following:
`(19) any other provision of law enacted after April 4, 1996, that
provides for the establishment and operation of a promotion program
described in the first sentence.'.
SEC. 10608. 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.
Subtitle H--Administration
SEC. 10701. INITIAL RATE OF BASIC PAY FOR EMPLOYEES OF COUNTY
COMMITTEES.
Section 5334 of title 5, United States Code, is amended by striking
subsection (e) and inserting the following:
`(e) An employee of a county committee established pursuant to section
8(b) of the Soil Conservation and Domestic Allotment Act (16 U.S.C. 590h(b))
may, on appointment to a position subject to this subchapter, have the initial
rate of basic pay of the employee fixed at--
`(1) the lowest rate of the higher grade that exceeds the rate of basic
pay of the employee with the county committee by not less than 2
step-increases of the grade from which the employee was promoted, if the
Federal Civil Service position under this subchapter is at a higher grade
than the last grade the employee had while an employee of the county
committee;
`(2) the same step of the grade as the employee last held during service
with the county committee, if the Federal Civil Service position under this
subchapter is at the same grade as the last grade the employee had while an
employee of the county committee; or
`(3) the lowest step of the Federal grade for which the rate of basic
pay is equal to or greater than the highest previous rate of pay of the
employee, if the Federal Civil Service position under this subchapter is at
a lower grade than the last grade the employee had while an employee of the
county committee.'.
SEC. 10702. COMMODITY FUTURES TRADING COMMISSION PAY COMPARABILITY.
(a) APPOINTMENT AND COMPENSATION OF EMPLOYEES OF THE COMMISSION- Section
2(a) of the Commodity Exchange Act (7 U.S.C. 2(a)) is amended--
(1) by redesignating paragraphs (7) through (11) as paragraphs (8)
through (12), respectively; and
(2) by inserting after paragraph (6) the following:
`(7) APPOINTMENT AND COMPENSATION-
`(A) IN GENERAL- The Commission may appoint and fix the compensation
of such officers, attorneys, economists, examiners, and other employees as
may be necessary for carrying out the functions of the Commission under
this Act.
`(B) RATES OF PAY- Rates of basic pay for all employees of the
Commission may be set and adjusted by the Commission without regard to
chapter 51 or subchapter III of chapter 53 of title 5, United States
Code.
`(i) IN GENERAL- The Commission may provide additional compensation
and benefits to employees of the Commission if the same type of
compensation or benefits are provided by any agency referred to in
section 1206(a) of the Financial Institutions Reform, Recovery, and
Enforcement Act of 1989 (12 U.S.C. 1833b(a)) or could be provided by
such an agency under applicable provisions of law (including rules and
regulations).
`(ii) CONSULTATION- In setting and adjusting the total amount of
compensation and benefits for employees, the Commission shall consult
with, and seek to maintain comparability with, the agencies referred to
in section 1206(a) of the Financial Institutions Reform, Recovery, and
Enforcement Act of 1989 (12 U.S.C. 1833b(a)).'.
(b) REPORTING OF INFORMATION BY THE COMMISSION- Section 1206 of the
Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (12
U.S.C. 1833b) is amended--
(1) by striking `The Federal' and inserting the following:
`(a) IN GENERAL- The Federal'; and
(2) by adding at the end the following:
`(b) COMMODITY FUTURES TRADING COMMISSION- In establishing and adjusting
schedules of compensation and benefits for employees of the Commodity Futures
Trading Commission under applicable provisions of law, the Commission
shall--
`(1) inform the heads of the agencies referred to in subsection (a) and
Congress of such compensation and benefits; and
`(2) seek to maintain comparability with those agencies regarding
compensation and benefits.'.
(c) CONFORMING AMENDMENTS-
(1) Section 3132(a)(1) of title 5, United States Code, is
amended--
(A) in subparagraph (C), by striking `or' at the end;
(B) in subparagraph (D), by adding `or' at the end; and
(C) by adding at the end the following:
`(E) the Commodity Futures Trading Commission;'.
(2) Section 5316 of title 5, United States Code, is amended--
(A) by striking `General Counsel, Commodity Futures Trading
Commission.'; and
(B) by striking `Executive Director, Commodity Futures Trading
Commission.'.
(3) Section 5373(a) of title 5, United States Code, is amended--
(A) in paragraph (2), by striking `or' at the end;
(B) in paragraph (3), by striking the period at the end and inserting
`; or'; and
(C) by adding at the end the following:
`(4) section 2(a)(7) of the Commodity Exchange Act (7 U.S.C.
2(a)(7)).'.
SEC. 10703. OVERTIME AND HOLIDAY PAY.
(a) IN GENERAL- The Secretary of Agriculture may--
(1) pay employees of the Department of Agriculture employed in an
establishment subject to the Federal Meat Inspection Act (21 U.S.C. 601 et
seq.) or the Poultry Products Inspection Act (21 U.S.C. 451 et seq.) for all
overtime and holiday work performed at the establishment at rates determined
by the Secretary, subject to applicable law relating to minimum wages and
maximum hours; and
(2) accept from the establishment reimbursement for any sums paid by the
Secretary for the overtime and holiday work, at rates determined under
paragraph (1).
(b) AVAILABILITY- Sums received by the Secretary under this section shall
remain available until expended without further appropriation and without
fiscal year limitation, to carry out subsection (a).
(c) CONFORMING AMENDMENTS-
(1) Section 25 of the Poultry Products Inspection Act (21 U.S.C. 468) is
amended by striking `except that the cost' and all that follows and
inserting `except the cost of overtime and holiday pay paid pursuant to the
section 10703 of the Farm Security and Rural Investment Act of 2002.'.
(2) The Act of June 5, 1948 (21 U.S.C. 695), is amended by striking
`overtime' and all that follows and inserting `overtime and holiday pay paid
pursuant to section 10703 of the Farm Security and Rural Investment Act of
2002.'.
(3) The matter under the heading `BUREAU OF ANIMAL INDUSTRY' of the Act
of July 24, 1919, is amended by striking the next to the last paragraph (7
U.S.C. 394).
(4) Section 5549 of title 5, United States Code is amended by striking
paragraph (1) and inserting the following:
`(1) section 10703 of the Farm Security and Rural Investment Act of
2002;'.
SEC. 10704. 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--
(A) in paragraph (1), by striking `and' at the end;
(B) in paragraph (2), by striking the period at the end and inserting
`; and'; and
(C) by adding at the end the following:
`(3) Assistant Secretary of Agriculture for Civil Rights.'; and
(2) by striking subsections (d) and (e) and inserting the
following:
`(d) DUTIES OF ASSISTANT SECRETARY OF AGRICULTURE FOR CIVIL RIGHTS- The
Secretary may delegate to the Assistant Secretary for Civil Rights
responsibility for--
`(1) ensuring compliance with all civil rights and related laws by all
agencies and under all programs of the Department;
`(2) coordinating administration of civil rights laws (including
regulations) within the Department for employees of, and participants in,
programs of the Department; and
`(3) ensuring that necessary and appropriate civil rights components are
properly incorporated into all strategic planning initiatives of the
Department and agencies of the Department.'.
(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, and
delegate duties to the Assistant Secretary, under section 218.'.
SEC. 10705. OPERATION OF GRADUATE SCHOOL OF DEPARTMENT OF AGRICULTURE.
(a) AUDITS OF RECORDS- Section 921 of the Federal Agriculture Improvement
and Reform Act of 1996 (7 U.S.C. 2279b) is amended by adding at the end the
following:
`(k) AUDITS OF RECORDS- The financial records of the Graduate School
(including records relating to contracts or agreements entered into under
subsection (c)) shall be made available to the Comptroller General for
purposes of conducting an audit.'.
(b) CONFORMING REPEAL- Section 1669 of the Food, Agriculture,
Conservation, and Trade Act of 1990 (7 U.S.C. 5922) is repealed.
(c) EFFECTIVE DATE- The amendments made by this section take effect on
October 1, 2002.
SEC. 10706. IMPLEMENTATION FUNDING AND INFORMATION MANAGEMENT.
(a) ADDITIONAL FUNDS FOR ADMINISTRATIVE COSTS-
(1) IN GENERAL- The Secretary of Agriculture, acting through the Farm
Service Agency, may use not more than $55,000,000 of funds of the Commodity
Credit Corporation to cover administrative costs associated with the
implementation of title I and the amendments made by that title.
(2) AVAILABILITY- The funds referred to in paragraph (1) shall remain
available to the Secretary until expended.
(3) SET-ASIDE- Of the amount specified in paragraph (1), the Secretary
shall use not less than $5,000,000, but not more than $8,000,000, to carry
out subsection (b).
(b) INFORMATION MANAGEMENT-
(1) DEVELOPMENT OF SYSTEM- The Secretary of Agriculture shall develop a
comprehensive information management system, using appropriate technologies,
to be used in implementing the programs administered by the Federal Crop
Insurance Corporation and the Farm Service Agency.
(2) ELEMENTS- The information management system developed under this
subsection shall be designed to--
(A) improve access by agricultural producers to programs described in
paragraph (1);
(B) improve and protect the integrity of the information
collected;
(C) meet the needs of the agencies that require the data in the
administration of their programs;
(D) improve the timeliness of the collection of the
information;
(E) contribute to the elimination of duplication of information
collection;
(F) lower the overall cost to the Department of Agriculture for
information collection; and
(G) achieve such other goals as the Secretary considers
appropriate.
(3) RECONCILIATION OF CURRENT INFORMATION MANAGEMENT- The Secretary
shall ensure that all current information of the Federal Crop Insurance
Corporation and the Farm Service Agency is combined, reconciled, redefined,
and reformatted in such a manner so that the agencies can use the common
information management system developed under this subsection.
(4) ASSISTANCE FOR DEVELOPMENT OF SYSTEM- The Secretary shall enter into
an agreement or contract with a non-Federal entity to assist the Secretary
in the development of the information management system. The Secretary shall
give preference in entering into an agreement or contract to entities that
have--
(A) prior experience with the information and management systems of
the Federal Crop Insurance Corporation; and
(B) collaborated with the Corporation in the development of the
identification procedures required by section 515(f) of the Federal Crop
Insurance Act (7 U.S.C. 1515(f)).
(5) USE- The information collected using the information management
system developed under this subsection may be made available to--
(A) any Federal agency that requires the information to carry out the
functions of the agency; and
(B) any approved insurance provider, as defined in section 502(b) of
the Federal Crop Insurance Act (7 U.S.C. 1502(b)), with respect to
producers insured by the approved insurance provider.
(6) RELATION TO OTHER ACTIVITIES- This subsection shall not interfere
with, or delay, existing agreements or requests for proposals of the Federal
Crop Insurance Corporation or the Farm Service Agency regarding the
information management activities known as data mining or data
warehousing.
(c) AUTHORIZATION OF APPROPRIATIONS- In addition to amounts made available
under subsection (a)(3), there are authorized to be appropriated such sums as
are necessary to carry out subsection (b) for each of fiscal years 2003
through 2008.
SEC. 10707. OUTREACH AND ASSISTANCE FOR SOCIALLY DISADVANTAGED FARMERS AND
RANCHERS.
(a) DEFINITIONS- Section 2501(e) of the Food, Agriculture, Conservation,
and Trade Act of 1990 (7 U.S.C. 2279(e)) is amended by adding at the end the
following:
`(4) DEPARTMENT- The term `Department' means the Department of
Agriculture.
`(5) ELIGIBLE ENTITY- The term `eligible entity' means any of the
following:
`(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 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
subsection (a); and
`(iii) does not engage in activities prohibited under section
501(c)(3) of the Internal Revenue Code of 1986.
`(B) An 1890 institution or 1994 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.
`(C) An Indian tribal community college or an Alaska Native
cooperative college.
`(D) An 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)).
`(E) 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.
`(F) 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.
`(G) An organization or institution that received funding under
subsection (a) before January 1, 1996, but only with respect to projects
that the Secretary considers are similar to projects previously carried
out by the organization or institution under such subsection.
`(6) SECRETARY- The term `Secretary' means the Secretary of
Agriculture.'.
(b) OUTREACH AND ASSISTANCE- 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) PROGRAM- The Secretary of Agriculture 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.
`(2) REQUIREMENTS- The outreach and technical assistance program under
paragraph (1) 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.
`(3) 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.
`(C) OTHER PROJECTS- Notwithstanding paragraph (1), the Secretary may
make grants to, and enter into contracts and other agreements with, an
organization or institution that received funding under this section
before January 1, 1996, to carry out a project that is similar to a
project for which the organization or institution received such
funding.
`(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 2007.
`(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
subsection 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.'.
(c) CONFORMING AMENDMENTS- Section 2501 of the Food, Agriculture,
Conservation, and Trade Act of 1990 (7 U.S.C. 2279) is amended--
(1) in subsection (d)(1), by striking `of Agriculture' after
`Department'; and
(2) in subsection (g)(1), by striking `of Agriculture' after
`Department'.
SEC. 10708. 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) REPORTING PARTICIPATION- In reporting the rates of participation
under paragraph (1), the Secretary shall report the participation rate of
socially disadvantaged farmers and ranchers according to race, ethnicity,
and gender.'.
(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 Farm Security and Rural
Investment 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 1 additional voting member 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.'.
Subtitle I--General Provisions
SEC. 10801. COTTON CLASSIFICATION SERVICES.
(a) EXTENSION OF AUTHORITY TO PROVIDE 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. 473a), is amended by striking `2002'
and inserting `2007'.
(b) REPEAL OF OBSOLETE EFFECTIVE DATE PROVISIONS-
(1) 1984 AMENDMENT- The first section of Public Law 98-403 (98 Stat.
1479) is amended by striking `, effective for the period beginning October
1, 1984, and ending September 30, 1988,'.
(2) 1987 AMENDMENTS- Section 2 of the Uniform Cotton Classing Fees Act
of 1987 (Public Law 100-108; 101 Stat. 728) is amended by striking
`Effective for the period beginning on the date of enactment of this Act and
ending September 30, 1992, section' and inserting `Section'.
(3) 1991 AMENDMENTS- Section 120 of the Food, Agriculture, Conservation,
and Trade Act Amendments of 1991 (Public Law 102-237; 105 Stat. 1842) is
amended by striking subsection (e).
SEC. 10802. PROGRAM OF PUBLIC EDUCATION REGARDING USE OF BIOTECHNOLOGY IN
PRODUCING FOOD FOR HUMAN CONSUMPTION.
(a) PUBLIC INFORMATION CAMPAIGN- Not later than 1 year after the date of
enactment of this Act, the Secretary of Agriculture shall develop and
implement a program to communicate with the public regarding the use of
biotechnology in producing food for human consumption. The information
provided under the program shall include the following:
(1) Science-based evidence on the safety of foods produced with
biotechnology.
(2) Scientific data on the human outcomes of the use of biotechnology to
produce food for human consumption.
(b) 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 2007.
SEC. 10803. CHINO DAIRY PRESERVE PROJECT.
Notwithstanding any other provision of law, the Secretary of Agriculture,
acting through the Natural Resources Conservation Service, may provide
financial and technical assistance to the Chino Dairy Preserve Project, San
Bernadino County, California.
SEC. 10804. GRAZINGLANDS RESEARCH LABORATORY.
Notwithstanding any other provision of law, before December 31, 2007, the
Federal land and facilities at El Reno, Oklahoma, currently administered by
the Secretary of Agriculture as the Grazinglands Research Laboratory shall
not, without specific authorization by Congress--
(1) be declared to be excess or surplus under the Federal Property and
Administrative Services Act of 1949 (40 U.S.C. 471 et seq.); or
(2) be conveyed or otherwise transferred in whole or in part.
SEC. 10805. FOOD AND AGRICULTURAL POLICY RESEARCH INSTITUTE.
(a) AUTHORITY- The Secretary of Agriculture may award grants to the Food
and Agricultural Policy Research Institute for the purpose of funding
prospective, independent research on the effects of alternative domestic,
foreign, and trade policies, on the agricultural sector, including research on
the effects of those policies on--
(1) commodity prices for--
(B) food grains, oilseeds, cotton, livestock, and products
thereof;
(2) supply and demand conditions for similar products;
(3) costs to the Federal Government;
(6) the volume and value of trade in agricultural commodities; and
(7) exporter and importer supply, demand, and trade.
(b) AUTHORIZATION OF APPROPRIATIONS- There is authorized to be
appropriated to carry out this section $6,000,000 for each of fiscal years
2003 through 2007.
SEC. 10806. MARKET NAMES FOR CATFISH AND GINSENG.
(1) IN GENERAL- Notwithstanding any other provision of law, for purposes
of the Federal Food, Drug, and Cosmetic Act (21 U.S.C. 301 et seq.)--
(A) the term `catfish' may only be considered to be a common or usual
name (or part thereof) for fish classified within the family Ictaluridae;
and
(B) only labeling or advertising for fish classified within that
family may include the term `catfish'.
(2) AMENDMENT- Section 403 of the Federal Food, Drug, and Cosmetic Act
(21 U.S.C. 343) is amended by adding at the end the following:
`(t) If it purports to be or is represented as catfish, unless it is fish
classified within the family Ictaluridae.'.
(1) IN GENERAL- Notwithstanding any other provision of law, for purposes
of the Federal Food, Drug, and Cosmetic Act (21 U.S.C. 301 et seq.)--
(A) the term `ginseng' may only be considered to be a common or usual
name (or part thereof) for any herb or herbal ingredient derived from a
plant classified within the genus Panax; and
(B) only labeling or advertising for herbs or herbal ingredients
classified within that genus may include the term `ginseng'.
(2) AMENDMENT- Section 403 of the Federal Food, Drug, and Cosmetic Act
(21 U.S.C. 343) (as amended by subsection (a)(2)) is amended by adding at
the end the following:
`(u) If it purports to be or is represented as ginseng, unless it is an
herb or herbal ingredient derived from a plant classified within the genus
Panax.'.
SEC. 10807. 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
(including a Chairperson, appointed by the President.
(i) IN GENERAL- Members of the Commission--
(I) shall have specialized training or significant experience in
matters under the jurisdiction of the Commission; and
(II) shall represent, at a minimum--
(aa) consumers;
(bb) food scientists;
(cc) the food industry; and
(dd) health professionals.
(ii) FEDERAL EMPLOYEES- Not more than 3 members of the Commission
may be Federal employees.
(C) DATE OF APPOINTMENTS- The appointment of the members of the
Commission shall be made as soon as practicable after the date on which
funds authorized to be appropriated under subsection (e)(1) are made
available.
(D) 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 date of appointment of the
final member of the Commission.
(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.
(1) RECOMMENDATIONS- The Commission shall make specific recommendations
to enhance the food safety system of the United States, including a
description of how each recommendation would improve food safety.
(2) COMPONENTS- Recommendations made by the Commission under paragraph
(1) shall address all food available commercially in the United
States.
(3) 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) the findings, conclusions, and recommendations of the Commission,
including a description of how each recommendation would improve food
safety;
(B) a summary of any other material used by the Commission in the
preparation of the report under this paragraph; and
(C) 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 may, for the purpose of carrying out this
section, hold such hearings, meet and act at such times and places, take
such testimony, and receive such evidence as the Commission considers
advisable.
(2) INFORMATION FROM FEDERAL AGENCIES-
(A) IN GENERAL- The Commission may secure directly, from any Federal
agency, such information as the Commission considers necessary to carry
out this section.
(B) PROVISION OF INFORMATION-
(i) IN GENERAL- Subject to subparagraph (C), on the request of the
Commission, the head of a Federal agency described in subparagraph (A)
may furnish information requested by the Commission to the
Commission.
(ii) ADMINISTRATION- The furnishing of information by a Federal
agency to the Commission shall not be considered a waiver of any
exemption available to the 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
this section 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 to an employee
of the Commission as described in clause (i), for the purpose of
receiving, reviewing, or processing the information.
(d) COMMISSION PERSONNEL MATTERS-
(A) COMPENSATION- A member of the Commission shall serve without
compensation for the services of the member on the Commission.
(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.
(A) IN GENERAL- The Chairperson of the Commission may, without regard
to the civil service laws (including regulations), appoint and terminate
the appointment of 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 II of
the Executive Schedule under section 5316 of title 5, United States
Code.
(3) DETAIL OF FEDERAL GOVERNMENT EMPLOYEES-
(A) IN GENERAL- An employee of the Federal Government may be detailed
to the Commission, without reimbursement, for such period of time as is
permitted by law.
(B) CIVIL SERVICE STATUS- The detail of the employee shall be without
interruption or loss of civil service status or privilege.
(4) 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 II of the Executive Schedule under section
5316 of that title.
(e) AUTHORIZATION OF APPROPRIATIONS-
(1) IN GENERAL- There is authorized to be appropriated such sums as are
necessary to carry out this section.
(2) LIMITATION- No payment may be made under subsection (d) except to
the extent provided for in advance in an appropriations Act.
(f) 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)(3).
SEC. 10808. PASTEURIZATION.
(a) PASTEURIZATION OF MEAT AND POULTRY-
(1) IN GENERAL- Effective beginning not later than 30 days after the
date of enactment of this Act, the Secretary of Agriculture shall conduct an
education program regarding the availability and safety of processes and
treatments that eliminate or substantially reduce the level of pathogens on
meat, meat food products, poultry, and poultry products.
(2) AUTHORIZATION OF APPROPRIATIONS- There is authorized to be
appropriated such sums as are necessary to carry out this subsection.
(b) PASTEURIZATION OF FOOD AS PASTEURIZED- Section 403(h) of the Federal
Food, Drug, and Cosmetic Act (21 U.S.C. 343(h)) is amended--
(1) by striking `or' at the end of paragraph (1);
(2) by striking the period at the end of paragraph (2) and inserting `;
or'; and
(3) by adding at the end the following:
`(3) a food that is pasteurized unless--
`(A) such food has been subjected to a safe process or treatment that
is prescribed as pasteurization for such food in a regulation promulgated
under this Act; or
`(B)(i) such food has been subjected to a safe process or treatment
that--
`(I) is reasonably certain to achieve destruction or elimination in
the food of the most resistant microorganisms of public health
significance that are likely to occur in the food;
`(II) is at least as protective of the public health as a process or
treatment described in subparagraph (A);
`(III) is effective for a period that is at least as long as the
shelf life of the food when stored under normal and moderate abuse
conditions; and
`(IV) is the subject of a notification to the Secretary, including
effectiveness data regarding the process or treatment; and
`(ii) at least 120 days have passed after the date of receipt of such
notification by the Secretary without the Secretary making a determination
that the process or treatment involved has not been shown to meet the
requirements of subclauses (I) through (III) of clause (i).
For purposes of paragraph (3), a determination by the Secretary that a
process or treatment has not been shown to meet the requirements of subclauses
(I) through (III) of subparagraph (B)(i) shall constitute final agency action
under such subclauses.'.
SEC. 10809. RULEMAKING ON LABELING OF IRRADIATED FOOD; CERTAIN
PETITIONS.
The Secretary of Health and Human Services (referred to in this section as
the `Secretary') shall publish a proposed rule and, with due consideration to
public comment, a final rule to revise, as appropriate, the current regulation
governing the labeling of foods that have been treated to reduce pest
infestation or pathogens by treatment by irradiation using radioactive
isotope, electronic beam, or x-ray. Pending promulgation of the final rule
required by this subsection, any person may petition the Secretary for
approval of labeling, which is not false or misleading in any material
respect, of a food which has been treated by irradiation using radioactive
isotope, electronic beam, or x-ray. The Secretary shall approve or deny such a
petition within 180 days of receipt of the petition, or the petition shall be
deemed denied, except to the extent additional agency review is mutually
agreed upon by the Secretary and the petitioner. Any denial of a petition
under this subsection shall constitute final agency action subject to judicial
review by the United States Court of Appeals for the District of Columbia
Circuit. Any labeling approved through the foregoing petition process shall be
subject to the provisions of the final rule referred to in the first sentence
of the subparagraph on the effective date of such final rule.
SEC. 10810. PENALTIES FOR VIOLATIONS OF PLANT PROTECTION ACT.
Section 424 of the Plant Protection Act (7 U.S.C. 7734) is amended by
striking subsection (a) and inserting the following:
`(A) IN GENERAL- A person that knowingly violates this title, or
knowingly forges, counterfeits, or, without authority from the Secretary,
uses, alters, defaces, or destroys any certificate, permit, or other
document provided for in this title shall be fined under title 18, United
States Code, imprisoned not more than 1 year, or both.
`(B) MOVEMENT- A person that knowingly imports, enters, exports, or
moves any plant, plant product, biological control organism, plant pest,
noxious weed, or article, for distribution or sale, in violation of this
title, shall be fined under title 18, United States Code, imprisoned not
more than 5 years, or both.
`(2) MULTIPLE VIOLATIONS- On the second and any subsequent conviction of
a person of a violation of this title under paragraph (1), the person shall
be fined under title 18, United States Code, imprisoned not more than 10
years, or both.'.
SEC. 10811. PRECLEARANCE QUARANTINE INSPECTIONS.
(a) PRECLEARANCE INSPECTIONS REQUIRED- The Secretary of Agriculture,
acting through the Administrator of the Animal and Plant Health Inspection
Service, shall conduct preclearance quarantine inspections of persons,
baggage, cargo, and any other articles destined for movement from the State of
Hawaii to any of the following--
(1) The continental United States.
(4) The United States Virgin Islands.
(b) INSPECTION LOCATIONS- The preclearance quarantine inspections required
by subsection (a) shall be conducted at all direct departure and interline
airports in the State of Hawaii.
(c) LIMITATION- The Secretary shall not implement this section 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 an Act making
appropriations for fiscal year 2003.
SEC. 10812. CONNECTICUT RIVER ATLANTIC SALMON COMMISSION.
Section 3(2) of Public Law 98-138 (Public Law 98-138; 97 Stat. 870) is
amended by striking `twenty' and inserting `40'.
SEC. 10813. PINE POINT SCHOOL.
Section 802(b)(2) of the No Child Left Behind Act of 2001 (Public Law
107-110) is amended by striking `2002' each place it appears and inserting
`2000'.
SEC. 10814. 7-MONTH EXTENSION OF CHAPTER 12 OF TITLE 11 OF THE UNITED STATES
CODE.
(a) AMENDMENTS- Section 149 of title I of division C of Public Law 105-277
is amended--
(1) by striking `June 1, 2002' each place it appears and inserting
`January 1, 2003'; and
(A) by striking `September 30, 2001' and inserting `May 31, 2002';
and
(B) by striking `October 1, 2001' and inserting `June 1,
2002'.
(b) EFFECTIVE DATE- The amendments made by subsection (a) shall take
effect on June 1, 2002.
SEC. 10815. PRACTICES INVOLVING NONAMBULATORY LIVESTOCK.
(a) REPORT- The Secretary of Agriculture shall investigate and submit to
Congress a report on--
(1) the scope of nonambulatory livestock;
(2) the causes that render livestock nonambulatory;
(3) the humane treatment of nonambulatory livestock; and
(4) the extent to which nonambulatory livestock may present handling and
disposition problems for stockyards, market agencies, and dealers.
(b) AUTHORITY- Based on the findings of the report, if the Secretary
determines it necessary, the Secretary shall promulgate regulations to provide
for the humane treatment, handling, and disposition of nonambulatory livestock
by stockyards, market agencies, and dealers.
(c) ADMINISTRATION AND ENFORCEMENT- For the purpose of administering and
enforcing any regulations promulgated under subsection (b), the authorities
provided under sections 10414 and 10415 shall apply to the regulations in a
similar manner as those sections apply to the Animal Health Protection Act.
Any person that violates regulations promulgated under subsection (b) shall be
subject to penalties provided in section 10414.
SEC. 10816. 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 an item
described in subparagraph (A) if the item is an ingredient in a processed
food item.
`(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 of 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, is exclusively from an animal that is
exclusively born, raised, and slaughtered in the United States (including
from an animal exclusively born and raised in Alaska or Hawaii and
transported for a period not to exceed 60 days through Canada to the
United States and slaughtered in the United States);
`(B) in the case of lamb and pork, is exclusively from an animal that
is exclusively born, raised, and slaughtered in the United
States;
`(C) in the case of farm-raised fish, is hatched, raised, harvested,
and processed in the United States;
`(D) 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
`(E) in the case of a perishable agricultural commodity or peanuts, 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 verify compliance with this subtitle (including the regulations
promulgated under section 284(b)).
`(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 subsections (b) and (c), 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
(b)(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 of not more than $10,000 for each violation.
`SEC. 284. REGULATIONS.
`(a) GUIDELINES- Not later than September 30, 2002, the Secretary shall
issue guidelines for the voluntary country of origin labeling of covered
commodities based on the requirements of section 282.
`(b) REGULATIONS- Not later than September 30, 2004, the Secretary shall
promulgate such regulations as are necessary to implement this subtitle.
`(c) PARTNERSHIPS WITH STATES- In promulgating the regulations, the
Secretary shall, to the maximum extent practicable, enter into partnerships
with States with enforcement infrastructure to assist in the administration of
this subtitle.
`SEC. 285. APPLICABILITY.
`This subtitle shall apply to the retail sale of a covered commodity
beginning September 30, 2004.'.
Subtitle J--Miscellaneous Studies and Reports
SEC. 10901. REPORT ON SPECIALTY CROP PURCHASES.
Not later than 1 year 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 on the quantity and type of--
(1) fruits, vegetables, and other specialty food crops that are
purchased under section 10603; and
(2) other commodities that are purchased under section 32 of the Act of
August 24, 1935 (7 U.S.C. 612c).
SEC. 10902. REPORT ON POUCHED AND CANNED SALMON.
(a) IN GENERAL- Not later than 180 days after the date of enactment of
this Act, the Secretary of Agriculture 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, are 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. 10903. STUDY ON UPDATING YIELDS.
(a) IN GENERAL- The Comptroller General shall conduct a study and make
findings and recommendations with respect to determining how producer income
would be affected by updating yield bases, including--
(1) whether crop yields have increased over the past 20 crop years for
program crops and oilseeds;
(2) whether program payments would be disbursed differently under title
I if yield bases were updated further;
(3) what impact the target prices under title I would have on producer
income if the yield bases of the target prices were further updated;
and
(4) what impact lower target prices with updated yield bases would have
on producer income, as compared with the impact of target prices under title
I.
(b) REPORT- Not later than 180 days after the date of enactment of this
Act, the Comptroller General shall submit to Congress a report on the study,
findings, and recommendations required by subsection (a).
SEC. 10904. REPORT ON EFFECT OF FARM PROGRAM PAYMENTS.
(a) IN GENERAL- The Secretary of Agriculture shall conduct a review of the
effects that payments under production flexibility contracts and market loss
assistance payments have had, and that direct payments and counter-cyclical
payments are likely to have, on the economic viability of producers and the
farming infrastructure, particularly in areas where climate, soil types, and
other agronomic conditions severely limit the covered crops that producers can
choose to successfully and profitably produce.
(b) CASE STUDY RELATED TO RICE PRODUCTION- The review shall include a case
study of the effects that the payments described in subsection (a), and the
forecast effects of increasing these or other fixed payments, are likely to
have on rice producers (including tenant rice producers), the rice milling
industry, and the economies of rice farming areas in Texas, where harvested
rice acreage has fallen from 320,000 acres in 1995 to only 211,000 acres in
2001.
(c) REPORT AND RECOMMENDATIONS-
(1) REPORT- Not later than 90 days after the date of the enactment of
this Act, the Secretary shall submit to the Committee on Agriculture of the
House of Representatives and the Committee on Agriculture, Nutrition, and
Forestry of the Senate a report describing the information collected for the
review and the case study and any findings made on the basis of the
information.
(2) RECOMMENDATIONS- The report shall include recommendations for
minimizing the adverse effects on producers, with a special focus on--
(A) producers who are tenants;
(B) the agricultural economies in farming areas generally;
(C) particular areas described in subsection (a); and
(D) on the area that is the subject of the case study conducted under
subsection (b).
SEC. 10905. CHILOQUIN DAM FISH PASSAGE FEASIBILITY STUDY.
(a) IN GENERAL- The Secretary of the Interior, in collaboration with all
interested parties (including the Modoc Point Irrigation District, the Klamath
Tribes, and the Oregon Department of Fish and Wildlife), shall conduct a study
of the feasibility of providing adequate upstream and downstream passage for
fish at the Chiloquin Dam on the Sprague River, Oregon.
(b) SUBJECTS- The study shall include--
(1) a review of all alternatives for providing passage described in
subsection (a), including the removal of the dam;
(2) the determination of the most appropriate alternative;
(3) the development of recommendations for implementing that
alternative; and
(4) examination of mitigation needed for upstream and downstream water
users, and for Klamath tribal nonconsumptive uses, as a result of the
implementation of the alternative.
(c) REPORT- Not later than 1 year after the date of enactment of this Act,
the Secretary of the Interior shall submit to Congress a report that describes
the findings, conclusions, and recommendations of the study.
SEC. 10906. REPORT ON GEOGRAPHICALLY DISADVANTAGED FARMERS AND
RANCHERS.
(a) DEFINITION OF GEOGRAPHICALLY DISADVANTAGED FARMER OR RANCHER- In this
section, the term `geographically disadvantaged farmer or rancher' means a
farmer or rancher in--
(1) 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 7502(a)); or
(2) a State other than 1 of the 48 contiguous States.
(b) REPORT- Not later than 1 year 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--
(1) barriers to efficient and competitive transportation of inputs and
products by geographically disadvantaged farmers and ranchers; and
(2) means of encouraging and assisting geographically disadvantaged
farmers and ranchers--
(A) to own and operate farms and ranches; and
(B) to participate equitably in the full range of agricultural
programs offered by the Department of Agriculture.
SEC. 10907. STUDIES ON AGRICULTURAL RESEARCH AND TECHNOLOGY.
(1) IN GENERAL- The Secretary of Agriculture may 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 any scientific studies
conducted under paragraph (1).
(1) VACCINE STORAGE STUDY- The Secretary may--
(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 may take such actions as are necessary to
obtain the required additional doses of the vaccine.
SEC. 10908. REPORT ON TOBACCO SETTLEMENT AGREEMENT.
Not later than December 31, 2002, and annually thereafter through 2006,
the Comptroller General 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. 10909. REPORT ON SALE AND USE OF PESTICIDES FOR AGRICULTURAL USES.
Not later than 180 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. 10910. REVIEW OF 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') 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) agricultural commodity, price support, and farm income support
programs (collectively referred to in this section as `agricultural
commodity programs');
(2) conservation programs (including financial and technical
assistance);
(3) agricultural credit programs;
(4) rural development programs; and
(b) CRITERIA FOR REVIEW- In carrying out the review under subsection (a),
the Secretary shall consider--
(1) the extent to which agricultural commodity programs and conservation
programs are consistent with tribal goals and priorities regarding the
sustainable use of agricultural land;
(2) strategies for increasing tribal participation in agricultural
commodity programs and conservation programs;
(3) the educational and training opportunities available to Indian
tribes and members of Indian tribes in the practical, technical, and
professional aspects of agriculture and land management; and
(4) the development and management of agricultural land under the
jurisdiction of Indian tribes in accordance with integrated resource
management plans that--
(A) ensure proper management of the land;
(B) produce increased economic returns;
(C) promote employment opportunities; and
(D) improve the social and economic well-being of Indian tribes and
members of Indian tribes.
(c) CONSULTATION- In carrying out this section, the Secretary shall
consult with--
(1) the Secretary of the Interior;
(2) local officers and employees of the Department of Agriculture;
and
(d) REPORT- Not later than 1 year after the date of enactment of this Act,
the Secretary shall submit to Congress a report that contains--
(1) a description of the results of the review conducted under this
section;
(2) recommendations for program improvements; and
(3) a description of actions that will be taken to carry out the
improvements.
Speaker of the House of Representatives.
Vice President of the United States and
President of the Senate.
END