(Sec. 1102) Directs the Secretary to establish payment yields for each farm for each covered commodity. States that: (1) the yield shall be the payment yield in effect for the 2002 crop of the commodity; or (2) if no yield is available the Secretary shall establish an appropriate payment yield based upon similar yields in the area.
Directs the Secretary to establish soybean and other oilseed yields for a farm by determining the average yield from 1998 through 2001, excluding years where the planted oilseed acreage was zero.
Sets forth crop acreage base and payment yield update provisions.
(Sec. 1103) Directs the Secretary to make direct payments for FY 2002 through 2007. Sets forth payment rates for wheat, corn, grain sorghum, barley, oats, upland cotton, rice, soybeans, and other oilseeds. States that the annual payment amount for a crop shall be the product of the payment rate, acreage, and yield. Authorizes up to 50 percent in advance payments.
(Sec. 1104) Directs the Secretary to make counter-cyclical payments for crop years 2002 through 2007 whenever the effective rate is less than the target price. States that the effective price shall be equal to the sum of: (1) the higher of the national average market price during the 12-month marketing year for the commodity or the national average loan rate for the commodity, and (2) the direct payment rate for the commodity. Authorizes partial payments.
Sets forth covered commodity target prices for: (1) crop years 2002 and 2003; and (2) crop years 2004 through 2007. States that: (1) the payment rate for counter-cyclical payments shall be equal to: (1) the difference between the target price and the effective price for the commodity; and (2) the payment amount for such payments shall be equal to the product of the payment rate, acreage, and yield.
(Sec. 1105) Sets forth contract elements. Provides for: (1) tenant and sharecropper protection; and (2) equitable contract payment sharing among eligible producers.
(Sec. 1106) Permits planting flexibility on base acres, with exceptions for tree-or perennial-grown fruits, most vegetables, and wild rice, unless the base acreage commodity is destroyed before harvest.
(Sec. 1107) Terminates the Secretary's authority to make production flexibility contract payments on the date of the enactment of this Act, unless requested by the producer. Reduces any direct payments due a producer by any FY 2002 payments made under a production flexibility contract.
(Sec. 1108) Makes the provisions of this subtitle effective through crop year 2007.
Subtitle B: Marketing Assistance Loans and Loan Deficiency Payments - (Sec. 1201) Directs the Secretary to make nonrecourse marketing assistance loans to producers of specified commodities through crop year 2007. Requires producers to comply with appropriate conservation and wetland provisions.
Directs the Secretary to make loans to a producer with covered commodities commingled in an unlicensed storage facility if the producer agrees to immediately redeem the loan collateral.
Terminates FY 2002 marketing loan assistance under the Federal Agriculture Improvement and Reform Act of 1996 (FAIRA).
(Sec. 1202) Sets forth crop year 2002 through 2003 and 2004 through 2007 loan rates for: (1) wheat; (2) corn; (3) grain sorghum; (4) barley; (5) oats; (6) upland cotton; (7) extra long staple cotton; (8) rice; (9) soybeans; (10) other oilseeds; (11) graded wool; (12) nongraded wool; (13) honey; (14) dry peas; (15) lentils; (16) small chickpeas; and (17) mohair.
(Sec. 1203) Provides for a market loan term of nine months with no extensions.
(Sec. 1204) Permits producers of wheat, corn, grain sorghum, barley, oats, soybeans, other oilseeds, dry peas, lentils, small chickpeas, wool, mohair, and honey to repay marketing assistance loans at the lesser of: (1) the loan rate for the commodity plus interest; or (2) a loan rate that will minimize forfeitures, accumulation of stocks, storage costs, allow competitive marketing, and minimize State and county discrepancies.
Permits producers of: (1) upland cotton and rice to repay marketing assistance loans at a rate that is the lesser of the loan rate for the commodity plus interest, or the prevailing world market price (adjusted to U.S. quality and location); and (2) extra long staple cotton to repay marketing assistance loans at the loan rate plus interest.
(Sec. 1205) Directs the Secretary to make loan deficiency payments to producers who, although eligible for a marketing assistance loan, agree to forgo a loan in favor of receiving a payment. Authorizes loan deficiency payments for unshorn pelts, hay, or silage derived from a loan commodity.
States that: (1) the loan deficiency payment shall be the product of the payment rate and the quantity of the loan commodity produced, excluding any commodity for which the producer obtained a loan; and (2) the payment rate shall be the amount by which the loan rate exceeds the repayment rate. Sets forth payment rates for unshorn pelts, hay, and silage. Exempts extra long staple cotton from such provisions.
Sets forth loan deficiency payment rules for producers of wool, mohair, honey, dry peas, lentils, and small chickpeas who lost beneficial interest in the crop before publication of certain implementing regulations.
Amends FAIRA to extend to crop year 2001 loan deficiency payment availability to producers who, although not eligible for marketing assistance loans, produce a contract commodity.
(Sec. 1206) Directs the Secretary to make payments in lieu of loan deficiency payments through crop year 2007 to producers who: (1) elect to use wheat, barley, or oats acreage for grazing; and (2) agree to forgo any other harvesting of such crops on the acreage. States that: (1) the payment shall be the product of the loan deficiency payment rate and the payment quantity; and (2) such acreage, including triticale acreage, shall be ineligible for Federal crop insurance.
Directs the Secretary to make payments through crop year 2007 to producers with triticale acreage used for grazing if the producer agrees to forgo any other harvesting of triticale on the acreage.
(Sec. 1207) Sets forth special marketing loan provisions for upland cotton through July 31, 2008. (Removes the 1.25 cent threshold through July 31, 2006.)
Directs the President to carry out, under specified cotton price related circumstances: (1) a special import quota through July 31, 2008; and (2) a limited global import quota for upland cotton.
(Sec. 1208) Directs the Secretary, through July 31, 2008, to make payments to producers and exporters of U.S.-produced extra long staple cotton in order to maintain and expand such cotton's domestic and export use.
(Sec. 1209) Directs the Secretary to make recourse loans available to producers of high moisture feed grains (corn and grain sorghum) and seed cotton through crop year 2007. Terminates crop year 2002 loan authority under FAIRA.
Subtitle C: Peanuts - (Sec. 1302) Sets forth payment yield and payment acre provisions for peanuts.
(Sec. 1303) Directs the Secretary to make direct payments: (1) to historic peanut producers (producers who planted or were prevented from planting 1998 through 2001 crops) for the 2002 crop year; and (2) for each of the 2003 through 2007 crop years, to producers on a farm on which payment yield and base acres have been assigned. Establishes a $36 per ton payment rate. Authorizes producers to elect 50 percent advance payments.
(Sec. 1304) Directs the Secretary to make counter-cyclical payments available when the effective price is less than the target price ($495 per ton) to: (1) historic producers for the 2002 crop year; and (2) producers on a farm on which payment yield and base acres have been assigned for crop years 2003 through 2007. Sets forth effective price, payment rate, and payment amount provisions. Provides for a partial payment option.
(Sec. 1305) Requires producers to comply with specified conservation, wetland, planting flexibility, and agricultural use provisions.
(Sec. 1306) Permits planting flexibility on peanut acres, with exceptions for fruits, most vegetables, and wild rice. Prohibits planting of trees and perennials on base acres. Exempts from such limitations: (1) any region with a history of double-cropping; or (2) a farm or a producer that has a history of planting such agriculture commodities.
(Sec. 1307) Directs the Secretary to: (1) make nine-month nonrecourse marketing loans available to peanut producers through crop year 2007 at $355 per ton, including certain instances of commingled peanuts; and (2) provide related storage costs through crop year 2006. Requires compliance with conservation and wetlands provisions.
Authorizes loan deficiency payments for producers who are eligible for but forgo such loans, with a special determination rate for crop year 2002.
(Sec. 1308) Requires Federal or Federal-State inspection of all U.S.-marketed peanuts.
Terminates the Peanut Administrative Committee. Directs the Secretary to establish a Peanut Standards Board to assist in establishing peanut standards.
Authorizes appropriations, in addition to other funds that may be available, to carry out such activities.
(Sec. 1309) Amends the Agricultural Adjustment Act of 1938 to terminate the peanut marketing quota program. Directs the Secretary to offer eligible peanut quota holders a compensation contract through FY 2006, which shall be the product of the farm poundage quota and $0.11. Authorizes producers to elect a single lump-sum payment in lieu of five installment payments.
Eliminates peanuts from certain eminent domain provisions.
(Sec. 1310) Amends FAIRA to terminate the peanut price support program.
Sets forth crop insurance provisions for crop year 2002 peanuts.
Subtitle D: Sugar - (Sec. 1401) Amends FAIRA to direct the Secretary to carry out the sugar program through nonrecourse (currently recourse) loans, including loans to processors of in-process sugars and syrups at 80 percent of sugarcane and sugar beet rates.
Makes current foreign subsidy-based mandatory loan rate reductions for domestic sugar discretionary.
Directs the Secretary to operate the sugar program at no cost to the Federal Government by avoiding sugar forfeiture to the Commodity Credit Corporation (CCC). Authorizes CCC to accept processor bids for sugar inventory purchases in exchange for reduced production.
Sets forth producer and importer reporting requirements.
Provides for the substitution of refined sugar in certain sugar export and polyhydric alcohol programs.
Extends the sugar program through crop year 2007.
Makes CCC interest rate provisions inapplicable to sugarcane, sugar beets, and in-process sugar.
(Sec. 1402) Directs CCC to establish a sugar storage and handling facility loan program for processors of domestically produced sugarcane and sugar beets.
(Sec. 1403) Amends the Agricultural Adjustment Act of 1938 to provide for estimates of: (1) U.S. sugar consumption; and (2) total U.S. sugar supply.
Revises sugar marketing allotment provisions. Directs the United States Trade Representative to: (1) determine the annual amount of cane sugar quota used by each supplying country (as defined by this Act); and (2) permit reallocation of the unused quota among such countries.
Subtitle E: Dairy - (Sec. 1501) Extends the dairy price support program through 2007 (at $9.90 per hundredweight for milk containing 3.67 percent butterfat). Authorizes the Secretary to: (1) maintain such level through purchases of cheese, butter, and nonfat dry milk; and (2) modify butter and nonfat dry milk prices up to twice a year.
(Sec. 1502) Directs the Secretary to provide market loss payments from December 1, 2001, through September 30, 2005, to milk producers in all States Provides that the producer payment amount shall equal 45 percent of the difference between $16.94 and the price per hundredweight of Class I fluid milk in Boston under the applicable Federal milk marketing order. Limits single operation producer payments to 2.4 million pounds of milk marketed per year.
(Sec. 1503) Amends the Food Security Act of 1985 to extend the dairy export incentive program through 2007. Amends Federal law to extend the dairy indemnity program through 2007.
(Sec. 1504) Amends the Agricultural Marketing Act of 1946 to revise dairy product mandatory reporting provisions.
(Sec. 1505) Amends the Dairy Production Stabilization Act of 1983 respecting dairy importers to provide for: (1) National Dairy Promotion and Research Board representation; (2) referenda voting eligibility; and (3) assessments at rates equal to domestic producers. Defines "imported dairy product." Prohibits importer assessments from being used for foreign export promotion.
(Sec. 1506) Amends the Fluid Milk Promotion Act to: (1) repeal the December 31, 2002, milk order termination date; and (2) revise the definitions of "fluid milk product" and "fluid milk processor."
(Sec. 1507) Directs the Secretary to conduct a national dairy policy study.
(Sec. 1508) Directs the Secretary to conduct a study of the effects of: (1) terminating Federal milk price and management programs; (2) granting congressional consent to State price and management efforts; and (3) including in the identity of fluid milk a required minimum protein content.
Subtitle F: Administration - (Sec. 1601) Directs the Secretary to use CCC funds, facilities, and authorities to carry out this title.
Authorizes the Secretary to make expenditure adjustments if expenditures will exceed total allowable domestic support levels under the Uruguay Round Agreement.
(Sec. 1602) Extends through 2007: (1) specified suspensions of permanent price support authority respecting loan commodities, peanuts, sugar, and milk under the Agricultural Adjustment Act of 1938 and the Agricultural Act of 1949; and (2) a specified suspension of wheat and corn marketing quota provisions.
(Sec. 1603) Amends the Food Security Act of 1985 to revise limitations on direct payments, counter-cyclical payments, marketing loan gains, and loan deficiency payments.
Limits: (1) direct and counter-cyclical payments to a person for corn, grain sorghum, barley, oats, wheat, soybeans, minor oilseeds, cotton, rice, and peanuts to $40,000 and $65,000, respectively; and (2) marketing loan gains and loan deficiency payments to a person for corn, grain sorghum, barley, oats, wheat, soybeans, minor oilseeds, cotton, rice peanuts, wool, mohair, honey, lentils, dry peas, and small chickpeas to $75,000.
(Sec. 1604) States that through crop year 2007, an individual or entity shall not receive any of the following benefits during a crop year if the average adjusted gross income of the individual or entity exceeds $2.5 million 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: (1) direct or counter-cyclical payments; (2) marketing loan or loan deficiency payments; or (3) payments under title XII of this Act or title II of the Farm Security and Rural Investment Act of 2002.
(Sec. 1605) Establishes the Commission on the Application of Payment Limitations for Agriculture.
(Sec. 1606) Amends FAIRA to include title I of this Act within the criteria for: (1) commodity loan adjustments; (2) producer liability for deficiencies; and (3) loan administrative authority.
(Sec. 1609) Amends the Commodity Credit Corporation Charter Act permit CCC use of private sector entities.
(Sec. 1610) Amends the Agricultural Adjustment Act of 1938 to reduce the reserve stock level for Flue-cured tobacco from 100 million pounds (farm sales weight) to 60 million pounds or ten percent of the national marketing quota.
(Sec. 1611) Directs the Secretary to: (1) allow special farm reconstitutions in lieu of leases and transfer of tobacco allotments and quotas for crop year 2002; and (2) study the effects on producer limitations on moving tobacco quotas to a farm other than the farm to which the quota was originally assigned.
(Sec. 1612) Provides that producers may assign any payments received under this Act by providing notice as prescribed by the Secretary.
(Sec. 1613) Authorizes the Secretary and State Executive Directors of the Farm Service Agency and State Conservationists with the Natural Resource Conservation Service to grant relief from loan and other benefit ineligibility under specified circumstances.
(Sec. 1615) Directs the Secretary to include in projections of net farm income an estimate of net farm income: (1) earned by U.S. commercial producers; and (2) attributable to commercial producers of livestock, and loan and non-loan commodities.
(Sec. 1616) Directs the Secretary to provide hard white wheat incentive payments for crop years 2003 through 2005 to producers who demonstrate that buyers and end-users are available.
(Sec. 1617) Authorizes the Secretary to use CCC funds to make specified supplemental payments to agricultural producers who did not receive such payments before October 1, 2001.
(Sec. 1618) Permits producers in Erie County, Pennsylvania, to retain erroneously paid loan deficiency and marketing loan benefits.
Title II: Conservation - Subtitle A: Conservation Security - (Sec. 2001) Amends the Food Security Act of 1985 to direct the Secretary to establish a FY 2003 through 2007 conservation security program to assist owners and operators adopt or maintain conservation practices on production land. Includes among such practices promotion of: soil, water, air, energy; and plant and animal life.
Defines eligible providers and lands (excludes lands in the conservation, grassland, and wetland reserve programs, and certain other converted lands).
Requires a participant to submit a conservation security plan. Establishes three tiers of conservation contracts, and bases a participant's annual payments upon implemented tiers. Sets forth related program and operating provisions.
(Sec. 2002) Prohibits the Secretary from delegating compliance determination authority with respect to the highly erodible land and wetland programs.
(Sec. 2003) Authorizes the Secretary to designate and provide incentives for special projects to enhance technical and financial assistance to owners, operators, and producers to address agriculture-related natural resource issues. Obligates specified funds for such projects.
(Sec. 2004) Authorizes the Secretary to provide agricultural conservation program incentives to: (1) beginning farmers and ranchers; (2) Indian tribes; and (3) limited resource agricultural producers.
(Sec. 2005) Directs the Secretary to develop a plan to coordinate land retirement and agricultural working land conservation programs in order to: (1) eliminate redundancy; (2) streamline program delivery; and (3) improve producer services.
Subtitle B: Conservation Reserve - (Sec. 2101) Amends the Food Security Act of 1985 to revise and extend the conservation reserve program through 2007. Provides a one-year extension for contracts expiring in 2002.
Revises eligible land provisions, including expansion of marginal pastureland eligibility, and inclusion of wildlife resources. Increases maximum program acreage enrollment.
Extends the pilot program for enrollment of wetland and buffer acreage through 2007. Eliminates provisions limiting the program to Iowa, Minnesota, Montana, Nebraska, North Dakota, and South Dakota. Increases maximum program acreage enrollment, and revises State acreage limitations. Permits wetland enrollment of ten-acre tracts (payment eligibility limited to five acres).
Sets forth owner-operator and Secretarial duties. Revises haying and grazing provisions. Permits wind turbine and biomass activities.
Sets forth payment and contract provisions.
Authorizes the conversion of highly erodible cropland devoted to vegetative cover to: (1) hardwood trees, windbreaks, shelterbelts, or wildlife corridors; or (2) wetland.
Directs the Secretary to conduct a study of the conservation reserve program's economic and social effects on rural communities.
Subtitle C: Wetlands Reserve Program - (Sec. 2201) Amends the Food Security Act of 1985 to extend the wetlands reserve program through 2007.
(Sec. 2202) Increases maximum acreage enrollment. Eliminates enrollment method percentages.
(Sec. 2203) Revises easement provisions.
Subtitle D: Environmental Quality Incentives - (Sec. 2301) Amends the Food Security Act of 1985 to revise and extend the environmental quality incentives program through 2007. Reduces minimum program contracts. Provides increased cost-share assistance for limited resource and beginning farmers. Eliminates the prohibition on cost-share payments for construction of certain animal waste management facilities. Modifies incentive payment provisions. Targets 60 percent of cost-share and incentive payments for livestock production practices.
Revises provisions respecting: (1) priorities; and (2) producer and Secretarial duties.
Sets forth plan requirements for confined livestock feeding operations.
Increases payment limitation provisions, including: (1) eliminating annual limitations; and (2) increasing aggregate limitations.
Eliminates temporary program provisions.
Authorizes the Secretary to make cost-share grants to stimulate innovative approaches to leveraging Federal investment in environmental enhancement and protection.
Directs the Secretary, in carrying out the environmental quality incentives program, to promote ground and surface water conservation by providing cost-share payments, incentive payments, and loans to producers to: (1) improve irrigation systems; (2) convert to less water-intensive agricultural commodities, or to dryland farming; (3) improve water storage through measures such as water banking and groundwater recharge; and (4) mitigate the effects of drought.
Obligates specified amounts for FY 2002 through 2007 for the environmental quality incentives program, with a specified set-aside for water conservation activities in Klamath Basin, California and Oregon.
Subtitle E: Grassland Reserve - (Sec. 2401) Amends the Food Security Act of 1985 to establish a grassland reserve program for land that is or has historically been natural grass or shrubland, and has significant potential for animal or plant restoration. Provides for: (1) a maximum enrollment of two million acres; and (2) enrollment through a 10-year, 15-year, or 20-year rental agreement, a 30-year rental agreement or permanent or 30-year easement; or in a State that imposes a maximum duration for easements, an easement for the maximum duration allowed under State law.
Authorizes the Secretary to delegate an easement to a private conservation or land trust organization, or a State agency.
Subtitle F: Other Conservation Programs - (Sec. 2501) Amends the Federal Crop Insurance Act with respect to the agricultural management assistance program to: (1) limit the program to Connecticut, Delaware, Maryland, Massachusetts, Maine, Nevada, New Hampshire, New Jersey, New York, Pennsylvania, Rhode Island, Utah, Vermont, West Virginia, and Wyoming; and (2) increase FY 2003 through 2007 funding.
(Sec. 2502) Amends the Food Security Act of 1985 to authorize appropriations through FY 2007 for: (1) the conservation of private grazing land program, including establishment of two grazing management demonstration districts; and (2) the wildlife habitat incentive.
Directs the Secretary to establish the national grassroots water protection program to more effectively use onsite technical assistance capabilities of State rural water associations that operate wellhead or groundwater protection programs. Authorizes FY 2002 through 2007 appropriations.
Authorizes the Secretary to: (1) carry out the Great Lakes basin program for soil erosion and sediment control; and (2) provide related grants, technical assistance, and education programs.
Authorizes FY 2002 through 2007 appropriations.
(Sec. 2503) Authorizes FY 2002 through 2007 appropriations for the farmland protection program (to be carried out through the Natural Resources Conservation Service). Eliminates acreage limitations. Includes within the program: (1) land containing historic or archaeological resources; and (2) certain forest land. Expands participating entity eligibility. Authorizes the Secretary to use specified funds to provide matching market viability grants and technical assistance. (Transfers program authority from FAIRA to the Food Security Act of 1985.)
(Sec. 2504) Amends the Agriculture and Food Act of 1981 to revise the resource conservation and development program. Provides technical and financial assistance through councils for conservation and development projects. Makes the authorization of appropriations permanent. Renames the Resource Conservation and Development Policy Board as the Resource Conservation and Development Policy Advisory Board.
(Sec. 2505) Amends the Watershed Protection and Flood Prevention Act respecting rehabilitation of water project structural measures to: (1) authorize appropriations through FY 2007; (2)
increase FY 2003 through 2005 authorizations; and (3) make specified CCC funds available through FY 2007.
(Sec. 2506) Amends FAIRA to authorize the Secretary to: (1) use, license, or transfer National Natural Resources Conservation Foundation symbols, slogans, and logos; and (2) use the revenues for conservation purposes.
(Sec. 2507) Directs the Secretary to transfer specified CCC funds to the Bureau of Reclamation Water and Related Resources Account to provide water to at-risk natural desert terminal lakes.
Subtitle G: Conservation Corridor Demonstration Program - Directs the Secretary to carry out the Conservation Corridor Demonstration Program under which Maryland, Virginia, Delaware, a local entity with jurisdiction over Delmarva Peninsula land, or any combination of such State and local entities may submit a conservation corridor plan to integrate Department and State or local agriculture and forestry conservation programs. Provides for 50 percent cost-sharing, unless the Secretary authorizes a greater Federal share. Authorizes FY 2002 through 2007 appropriations.
Subtitle H: Funding and Administration - Amends the Food Security Act of 1985 to revise certain funding provisions to: (1) provide CCC funding through FY 2007 for the conservation reserve, wetlands reserve, and conservation security programs; (2) use specified FY 2002 through 2007 CCC amounts for the farmland protection, grassland reserve, environmental quality incentives, and wildlife habitat incentives programs; and (3) eliminate the livestock production set-aside.
Eliminates certain provisions respecting the use of other agencies and State and local agricultural committees.
Title III: Trade - Subtitle A: Agricultural Trade Development and Assistance Act of 1954 and Related Statutes - Amends the Agricultural Trade Development and Assistance Act of 1954 (Public Law 480) respecting the food for peace program to: (1) extend the program through 2007; (2) make the amount of funds available for eligible organizations on a percent rather than fixed amount basis; (3) permit commodity sale proceeds to be denominated in other than the local currency; (4) extend through FY 2007 and increase maximum assistance tonnage levels; (5) extend the Food Aid Consultative Group through 2007; (6) eliminate the maximum annual expenditure level; (7) extend funding authority for certain commodity prepositioning through FY 2007; (8) extend authorization of appropriations through FY 2007 for stockpiling, delivery, and distribution of shelf-stable pre-packaged goods; (9) extend the micronutrient fortification program through FY 2007 (ends the program's pilot status); and (10) extend the John Ogonowski farmer-to-farmer program through FY 2007 (increases minimum funding provisions and includes Caribbean Basin and Sub-Saharan countries within the program framework).
Subtitle B: Agricultural Trade Act of 1978 - (Sec. 3101) Amends the Agricultural Trade Act of 1978 to direct the Secretary to develop an agricultural exporter website.
(Sec. 3102) Extends the export credit guarantee program, including required guarantees for processed and high-value products, through FY 2007. Authorizes appropriations to cover the costs of loan guarantees exceeding 180 days. (Extends the guarantee period to 360 days, subject to authorization of such appropriations.)
(Sec. 3103) Extends market access program funding through FY 2007.
(Sec. 3104) Extends the export enhancement program through FY 2007. Expands the definition of "unfair trade practices" to include certain: (1) agricultural pricing practices by state trading enterprises; (2) trade or sanitary restrictions; (3) subsidies; and (4) restrictions on U.S. imports.
(Sec. 3105) Extends funding for the foreign market development cooperator program through FY 2007.
(Sec. 3106) Extends the food for progress program through 2007 Defines an "eligible entity" as: (1) the government of an emerging agricultural country; (2) an intergovernmental organization; (3) a private voluntary organization; (4) a nonprofit agricultural organization; (5) a nongovernmental organization; or (6) any other private entity. Defines "eligible commodity."
Prohibits program distributions that will reduce domestic commodity amounts below levels traditionally available for domestic feeding programs.
States that CCC funds in excess of $40 million may be used in FY 2002 through 2007 only if authorized in advance by appropriations.
Establishes minimum commodity tonnages (400,000 metric tons) for each of FY 2002 through 2007.
Increases administrative expense amounts. Authorizes program fund use for humanitarian or development purposes.
(Sec. 3107) Authorizes the President to establish the McGovern-Dole International Food for Education and Child Nutrition Program to provide agricultural commodities and financial and technical assistance for: (1) school-based food programs; and (2) maternal, infant, and child nutrition programs. Encourages the President to seek multinational and private sector involvement. Obligates specified CCC funds for FY 2003, and authorizes FY 2004 through 2007 appropriations.
Subtitle C: Miscellaneous - (Sec. 3201) Amends the Agricultural Act of 1949 respecting foreign currency use in the surplus commodities for developing or friendly countries program. Encourages the Secretary to finalize program agreements by December 31 of each fiscal year.
(Sec. 3202) Amends the Bill Emerson Humanitarian Trust Act to extend the Bill Emerson Humanitarian Trust (food security commodity trust) through FY 2007.
(Sec. 3203) Amends the Food, Agriculture, Conservation, and Trade Act of 1990 to extend funds through FY 2007 for the promotion of agricultural exports to emerging markets program.
(Sec. 3204) Establishes in the Department of Agriculture (Department) the biotechnology and agricultural trade program, which shall seek to remove significant nontariff trade barriers to U.S. agricultural exports. Authorizes such activities to be carried under: (1) this section; (2) the emerging markets program; and (3) the Cochran Fellowship Program. Authorizes FY 2002 through 2007 appropriations.
(Sec.3205) Directs the Secretary to establish a specialty crops technical assistance program to mitigate or remove sanitary or phytosanitary trade barriers. Makes funding or commodities of equal value available through FY 2007.
(Sec. 3206) Directs the Secretary to consult with specified committees on implementation of a global market strategy for the Department that: (1) identifies export opportunities; (2) ensures Department coordination with other agencies; and (3) removes overseas trade barriers.
(Sec. 3207) Directs the Secretary to report on U.S. international food aid programs that evaluate: (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.
(Sec. 3208) Directs the Secretary to report on the feasibility of instituting a fee program to cover Department costs incurred in providing commercial services abroad..
(Sec. 3209) Expresses the sense of Congress that: (1) U.S. foreign assistance programs should play an increased role in the fight against terrorism; (2) the United States should lead 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 should substantially increase humanitarian, economic development, and agricultural assistance to foster international peace and stability and the promotion of human rights.
(Sec. 3210) Expresses the sense of the Senate that: (1) the principal U.S. negotiating objective with respect to agricultural trade in all multilateral, regional, and bilateral negotiations is to obtain competitive opportunities for U.S. agricultural exports substantially equivalent to the competitive opportunities afforded foreign exports in U.S. markets, and to achieve fairer and more open conditions of agricultural trade in bulk and value-added commodities; (2) reaching a successful agreement on agriculture should be the top U.S. priority in World Trade Organization talks; (3) if primary export competitors of the United States fail to reduce their domestic supports and eliminate export subsidies the United States should take steps to increase its negotiating leverage; and (4) the United States Trade Representative should consult closely with the House and Senate agricultural committees.
Title IV: Nutrition Programs - Food Stamp Reauthorization Act of 2002 - Subtitle A: Food Stamp Program - (Sec. 4101) Amends the Food Stamp Act of 1977 exclude from income for food stamp program (program) purposes legally obligated child support payments made by a household member on behalf of a person not a member of such household. Allows a State to continue to provide a child support deduction, rather than such exclusion. Requires determination of such deduction before computing the excess shelter expense deduction.
Allows a State to use information from child support enforcement agencies to determine the amount of child support paid for program purposes.
(Sec. 4102) Excludes from income for program purposes deferred educational and veterans' educational assistance, State complementary assistance payments, and certain medical assistance not included as income under specified provisions of titles IV and XIX of the Social Security Act.
(Sec. 4103) Establishes the standard deduction at 8.31 percent of the inflation-indexed Federal poverty income guideline used for program eligibility. Includes comparable provisions for Guam and the Virgin Islands.
(Sec. 4104) Revises provisions respecting: (1) utility allowances; (2) resources; (3) deduction determinations; and (4) housing.
(Sec. 4108) Authorizes the Secretary to select alternative methods to issue emergency food stamps to disaster victims.
(Sec. 4109) Authorizes a State to reduce household reporting requirements.
(Sec. 4110) Eliminates the requirement that electronic benefit transfer systems not cost the Federal Government more than paper issuance systems.
(Sec. 4111) Requires an annual report on electronic benefit transfer systems.
(Sec. 4112) Authorizes a State, subject to prior pilot program determination of feasibility, to provide a standardized monthly benefit to residents of group homes and substance abuse centers, which shall be issued to the facility as representative of the residents.
(Sec. 4113) Authorizes program benefit redemptions through group living arrangements under specified circumstances.
(Sec. 4114) Requires a State that has a program website to make on-line applications available in each language in which printed applications are available.
(Sec. 4115) Authorizes a State agency to provide up to five months of transitional program benefits to households moving from the temporary assistance for needy families program (TANF).
(Sec. 4116) Directs the Secretary to use specified FY 2002 through 2007amounts for grants to eligible entities to develop and implement: (1) program application and eligibility determination systems; or (2) measures to improve program access.
(Sec. 4117) States that retailer notices of adverse action shall be delivered as the Secretary determines will provide evidence of delivery.
(Sec. 4118) Revises program quality control provisions.
(Sec. 4119) Revises provisions respecting: (1) State performance calculations; and (2) State high performance bonuses for FY 2003 and 2004, and FY 2005 and subsequent fiscal years.
(Sec. 4221) Extends employment and training program funding allocations through FY 2007.
Allocates additional FY 2002 through 2007 amounts to States that ensure availability of specified work opportunities.
Repeals the: (1) 80 percent set-aside for able-bodied adults without dependents; (2) maintenance-of-effort requirement to access new unmatched funds; (3) limits on the amount States are reimbursed for each work slot offered; and (4) $25 monthly cap on the amount States may reimburse participants for transportation and other work expenses.
(Sec. 4222) Extends: (1) reductions in program administrative payment provisions through FY 2007; (2) cash payment pilot programs through October 1, 2007; and (3) program authorization of appropriations through FY 2007.
(Sec. 4123) Authorizes the Secretary to grant waivers to nongovernmental entities for program research.
(Sec. 4124) Consolidates, and extends through FY 2007, the block grant funding structure for nutrition assistance in American Samoa and Puerto Rico. Provides for inflation adjustments. Authorizes Puerto Rico to use specified FY 2002 and 2003 grant amounts for data processing and benefit transfer modernization.
(Sec. 4125) Extends and increases community food project funding through FY 2007.
Directs the Secretary to contract with, or make a grant to, one nongovernmental organization to coordinate with Federal, State, and local entities, and nongovernmental organizations to gather information, and recommend programs to address common community problems, including: (1) loss of farms and ranches; (2) rural poverty; (3) welfare dependency; and (4) hunger. Obligates specified funds through FY 2007.
(Sec. 4126) Extends commodity purchase funding for the emergency food assistance program through FY 2007.
Subtitle B: Commodity Distribution - (Sec. 4201) Amends the Agriculture and Consumer Protection Act of 1973 to: (1) extend the Secretary's authority to provide commodities for nutrition assistance programs though FY 2007; and (2) extend the commodity supplemental food program through FY 2007, and redistribute administrative and program funds to provide an inflation-indexed grant per assigned caseload slot for administrative costs.
Makes additional funds available for certain States for the commodity supplemental food program.
(Sec. 4202) Amends the Commodity Distribution Reform Act and WIC Amendments Act of 1987 to permit commodity donations to other specified programs.
(Sec. 4203) Amends the Agriculture and Food Act of 1981 to extend the distribution of surplus commodities to special nutrition projects authority through September 30, 2007.
(Sec. 4204) Amends the Emergency Food Assistance Act of 1983 to authorize appropriations for emergency food assistance through FY 2007. Makes: (1) administrative expenses ineligible for reimbursement; (2) storage costs eligible for reimbursement; and (3) gleaning an eligible commodity source.
Subtitle C: Child Nutrition and Related Programs - Amends the Richard B. Russell National School Lunch Act to: (1) revise from October1, 2001, to October 1, 2003, the beginning period for which commodities other than those under a direct commodity expenditure provision may be used to meet a minimum 12 percent commodity assistance school lunch program requirement; (2) exclude from FY 2002 and 2003 income calculations certain military housing allowances in determining eligibility for free and reduced-price meals school meals; and (3) extend Buy American preference to items grown or produced in Puerto Rico.
(Sec. 4303) Directs the Secretary to encourage institutions participating in the school lunch and breakfast programs to purchase locally produced foods. Authorizes FY 2003 through 2007 appropriations.
(Sec. 4305) Directs the Secretary to carry out a fresh fruit and vegetable distribution program during the 2002 school year in each of four States (25 primary or secondary schools in each State) and on one Indian reservation. Directs: (1) participating schools to publicize the program; and (2) the Secretary, through the Economic Research Service, to evaluate the program. Obligates specified funds for the program.
(Sec. 4306) Amends the Child Nutrition Act of 1966 to exclude certain military housing allowances from income eligibility calculations for the supplemental nutrition program for women, infants, and children (WIC).
(Sec. 4307) Directs the Secretary to make specified CCC funds available for the WIC farmers' market nutrition program within 30 days of enactment of the Food Stamp Reauthorization Act of 2002.
Subtitle D: Miscellaneous - (Sec. 4401) Amends the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 to: (1) eliminate the seven-year eligibility limit for supplemental security income (SSI) benefits for blind or disabled aliens who were lawfully residing in the United States on August 22, 1996; (2) make all legal immigrant children under 18 years old, regardless of U.S. entry date, eligible for the SSI and food stamp programs, beginning in FY 2004, and (3) as of April 1, 2003, makes aliens eligible for the food stamp program who have resided in the United States as a"qualified alien" for at least five years from the date of U.S. entry.
(Sec. 4402) Directs the Secretary to carry out a senior farmers' market nutrition program. Obligates specified CCC funds for the program through FY 2007.
(Sec. 4403) Authorizes the Secretary to establish a nutrition information and awareness pilot program in up to five States to increase fruit and vegetable consumption and convey related health promotion messages. Authorizes specified FY2002 through 2007 appropriations.
(Sec. 4404) Congressional Hunger Fellows Act of 2002 - Establishes the Congressional Hunger Fellows Program and the Congressional Hunger Fellows Trust Fund in order to establish Bill Emerson and Mickey Leland Hunger Fellowships, respectively, to address hunger and other humanitarian needs in the United States and abroad. Authorizes specified appropriations.
Title V: Credit: Subtitle A: Farm Ownership Loans - (Sec. 5001) Amends the Consolidated Farm and Rural Development Act to make direct farm ownership loans available to a farmer or rancher who has participated (currently, operates) in the business operations of a farm or ranch for at least three years.
(Sec. 5002) Authorizes the use of a direct farm ownership loan to refinance a "bridge loan'' made by a commercial lender to a beginning farmer or rancher who has been approved for, but has not yet received, a farm ownership loan.
(Sec. 5003) Provides certain Indian farmers or ranchers on Indian reservation land with 95 percent operating loan guarantees.
(Sec. 5004) Authorizes the Secretary to guarantee loans made under State beginning farmer or rancher programs.
(Sec. 5005) Increases the loan term to 15 years and Department financing to 40 percent as part of the down payment program for beginning farmers and ranchers.
(Sec. 5006) Directs the Secretary, upon determination that guarantees of contract land sales present a comparable risk to commercial lender risks, to carry out a FY 2003 through 2007 pilot program in at least five States to guarantee up to five loans in each State made by a private land seller to a beginning farmer or rancher on a contract land sale basis if the loan meets underwriting criteria and a commercial lending institution serves as escrow agent.
Subtitle B: Operating Loans - (Sec. 5101) Amends the Consolidated Farm and Rural Development Act to eliminate the prohibition on direct operating loans for farmers who have operated a farm or ranch for more than five years.
Directs the Secretary to waive certain limitations for a direct loan to a farmer or rancher whose farm or ranch is subject to the jurisdiction of an Indian tribe and whose loan is secured by one or more security instruments that are subject to the jurisdiction of an Indian tribe if the Secretary determines that commercial credit is not generally otherwise available.
Authorizes the Secretary to grant a borrower a one-time, two-year waiver for a direct operating loan if the borrower: (1) has a viable farm or ranch operation; (2) applied for credit from at least two commercial lenders and was unable to obtain a commercial loan (including a loan guaranteed by the Secretary); and (3) successfully has completed, or will complete within one year, borrower training.
(Sec. 5102) Suspends the limitation on the period for which borrowers are eligible for loan guarantee assistance through December 31, 2006.
Subtitle C: Emergency Loans - (Sec. 5201) Amends the Consolidated Farm and Rural Development Act to authorize emergency loans for animal- or plant-caused quarantines.
Subtitle D: Administrative Provisions - (Sec. 5301) Directs the Secretary to conduct studies of the direct and guaranteed loan programs under 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 two specified periods.
(Sec. 5302) Amends the Consolidated Farm and Rural Development to make limited liability companies eligible to receive farm ownership loans, farm operating loans, and natural disaster emergency loans.
(Sec. 5304) Eliminates: (1) the requirement that county committees certify that certain loan reviews have been conducted; and (2) authority to contract for private loan service and debt collection.
(Sec. 5305) Includes among interest options on a direct loan that is being rewritten the interest rate in effect on the date that a borrower applies for servicing.
(Sec. 5306) Eliminates the requirement that county committees certify that certain annual reviews of borrower credit histories have been conducted.
(Sec. 5307) Increases the loan amount for which a simplified loan guarantee application may be used to $125,000.
(Sec. 5308) Increases to 135 days the preference period for a beginning farmer or rancher to purchase Department inventory farmland. Directs the Secretary to: (1) combine or divide property parcels to maximize such purchases; and (2) offer to sell or grant farmland preservation easements on inventory land.
(Sec. 5309) Authorizes the Secretary to administer the certified lender and preferred certified lender programs through central offices established in States or multi-State areas.
(Sec. 5310) Increases to 30 percent the amount of land that an applicant may own under the definition of a "qualified beginning farmer or rancher." Excludes from the definition of` "debt forgiveness'' any write-down as part of a discrimination complaint resolution against the Secretary.
(Sec. 5311) Increases FY 2003 through 2007 loan authorization levels for the direct and the guaranteed loan programs.
(Sec. 5312) Extends the obligation of funds for direct operating loans to beginning farmers and ranchers through FY 2007.
(Sec. 5313) Makes the interest rate reduction program permanent. Replaces the current aggregate funding limit with a specified fiscal year limit. Obligates at least 15 percent of program funds for beginning farmers and ranchers.
(Sec. 5314) Authorizes the Secretary to modify the amortization (25-year maximum) of a recapture payment on which a payment has become delinquent if: (1) the default is due to circumstances beyond the control of the borrower; and (2) the borrower made good faith repayment attempts.
(Sec. 5315) Allocates specified unused State funds for disadvantaged farmers and ranchers.
(Sec. 5316) Authorizes the Secretary to waive borrower training certification requirements.
(Sec. 5318) Requires annual (currently biannual) borrower review.
(Sec. 5319) Permits loan eligibility for a borrower who has received debt forgiveness on not more than one occasion 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 (Sec. 5320) Directs the Secretary to use trained State, county, or area agricultural committee personnel to make and service loans. Makes such personnel and Department personnel eligible for loans and loan guarantees.
Subtitle E: Farm Credit - (Sec. 5401) Amends the Farm Credit Act of 1971 to eliminate certain prior approval requirements for multi-lender Farm Credit System institutions.
(Sec. 5402) Authorizes cooperative banks to finance the export of "agricultural supplies." (Current law is limited to farm supplies.)
(Sec. 5403) Authorizes the Farm Credit System Insurance Corporation to reduce premiums for Government Sponsored Enterprise-guaranteed loans (as defined by this Act).
Subtitle F: General Provisions - (Sec. 5501) Makes specified technical amendments to the Consolidated Farm and Rural Development Act.
Title VI: Rural Development - Subtitle A: Consolidated Farm and Rural Development Act - (Sec. 6001) Authorizes the Secretary to make or insure loans to communities that have been designated as rural empowerment zones or rural enterprise communities, or as rural enterprise communities: (1) for the installation or improvement of essential community facilities including necessary related equipment; and (2) to furnish financial assistance or other planning aid.
(Sec. 6002) Amends the Consolidated Farm and Rural Development Act to eliminate the fiscal year cap on authorization of appropriations for water, waste disposal, and wastewater facility grants..
Authorizes the Secretary to make grants to private entities to capitalize revolving funds for water and wastewater projects. Authorizes FY 2002 through 2007 appropriations.
(Sec. 6003) Authorizes appropriations for rural business opportunity grants through FY 2007.
(Sec. 6004) Obligates funds for children's day care facilities.
(Sec. 6005) Directs the Secretary to establish a national rural water and wastewater circuit rider program modeled after the national rural water association rural water circuit rider program. Authorizes specified appropriations beginning in FY 2003.
(Sec. 6006) Directs the Secretary to make grants to multijurisdictional regional planning and development entities for grants (75 percent maximum Federal share) to local governments to improve their infrastructure, services, and development capabilities. Gives priority to an organization that: (1) serves a rural area that is undergoing out-migration, or has a median household income that is less than the nonmetropolitan household income of the applicable State; and (2) has a history of providing substantive assistance to local governments and economic development organizations. Authorizes FY 2003 through 2007 appropriations.
(Sec. 6007) Authorizes the Secretary to guarantee, and sets forth requirements for, loan guarantees for water, wastewater, and essential community facilities loans, including loans financed by bonds issued respecting tribal college and university essential community facilities.
(Sec. 6008) Authorizes the Secretary to make cost-share grants to tribal colleges and universities for essential community facilities in rural areas. Authorizes FY 2003 through 2007 appropriations.
(Sec. 6009) Expands the scope of the emergency community water assistance grant program to include situations of imminent decline. Increases grant caps for water shortage-related repair projects. Obligates specified amounts for rural water and waste facility grants. Authorizes FY 2003 through 2007 appropriations, in addition to such obligations.
(Sec. 6010) Authorizes appropriations for water and waste facility grants for Indian tribes.
(Sec. 6011) Authorizes appropriations through FY 2007 for water systems for rural and Native villages in Alaska.
(Sec. 6012) Authorizes the Secretary to make grants to private nonprofit organizations for loans to eligible limited-income individuals for the construction, refurbishing, and servicing of individual household water well systems in rural areas. Authorizes specified FY 2003 through 2007 appropriations.
(Sec. 6013) Makes renewable energy systems, including wind energy systems and anaerobic digestors, eligible for loans and loan guarantees.
(Sec. 6014) Makes a nonprofit or other tax exempt entity whose principal office is located on an existing or former Indian reservation, or in a city or town of fewer than 5,000 people eligible for rural business grants.
(Sec. 6015) Authorizes appropriations through FY 2007 for: (1) rural cooperative development grants (limits 1994 institution matching requirements); and (2) broadcasting system grants.
(Sec. 6017) Authorizes the Secretary to: (1) make business and industry loan guarantees for the purchase of start-up capital stock for a venture that will process agricultural commodities or otherwise process value-added agricultural products; and (2) make or guarantee such loans to a metropolitan-based cooperative if used for a rural project. Permits refinancing use of such loans under specified circumstances.
(Sec. 6018) Allows the use of rural development loans and grants for other purposes if the Secretary determines that the original project no longer appropriate.
(Sec. 6019) Directs the Secretary to provide simplified guarantee applications for specified loan circumstances.
(Sec. 6020) Defines "rural' and "rural area" for purposes of: (1) water and waste disposal grants and direct and guaranteed loans; (2) community facility loans and grants; (3) multijurisdictional regional planning organizations and national rural development partnership; and (4) the rural business investment program.
(Sec. 6021) Establishes the National Rural Development Partnership composed of the National Rural Development Coordinating Committee (established by this Act) and State development councils (authorized by this Act). Includes among Partnership purposes: (1) enhancement of State and local rural development capacities; and (2) engagement of Federal, State, local, tribal, and private and nonprofit sectors in such efforts.
Authorizes specified appropriations through FY 2007. Provides for State rural development council matching requirements.
Terminates the Partnership five years after enactment of this Act.
(Sec. 6022) Directs the Secretary to make grants (70 percent Federal share through year three, 50 percent for years four and five) to establish and operate a regional rural telework institute which shall: (1) serve as a clearinghouse for telework research and development and information-sharing; (2) conduct outreach activities; (3) develop and share best practices within the region and throughout the United States; (4) develop telework projects and joint ventures with the private sector; (5) support private sector businesses that are transitioning to telework; and (6) assist telework projects and individuals at the State and local level.
Directs the Secretary to make grants for equipment and facilities to expand and operate rural telework locations. Authorizes specified FY 2002 through 2007 appropriations, with a specified obligation for the rural telework institute.
(Sec. 6023) Directs the Secretary to establish a historic barn preservation program. Authorizes the Secretary to make grants, or enter into contracts with State departments of agriculture or certain nonprofit organizations for historic barn preservation. Authorizes FY 2002 through 2007 appropriations.
(Sec. 6024) Directs the Secretary, through the Rural Utilities Service, to make grants to public and nonprofit entities, and to Service loan borrowers for the Federal share of the cost of acquiring radio transmitters to increase rural coverage by the all hazards weather radio broadcast system of the National Oceanic and Atmospheric Administration. Authorizes FY 2002 through 2007 appropriations.
(Sec. 6025) Directs the Secretary to make grants to eligible organizations to train farm workers in agricultural technology and higher value crop skills. Authorizes specified FY 2002 through 2007 appropriations.
(Sec. 6026) Revises objectives for the rural community advancement program. Repeals the rural venture capital demonstration program.
(Sec. 6027) Extends and authorizes appropriations through FY 2007 for the Delta Regional Authority.
Revises provisions respecting: (1) voting procedures; and (2) supplements for Federal grants.
Authorizes the Secretary to make grants for state-of-the-art technology in animal nutrition and value-added manufacturing to promote economic development in the Lower Mississippi Delta region. Authorizes specified FY 2002 through 2007 appropriations. Includes within such region the Alabama counties of Butler, Conecuh, Escambia, and Monroe.
(Sec. 6028) Establishes the Northern Great Plains Regional Authority which shall develop programs and approve grants for the economic development of the region encompassing Iowa, Minnesota, Nebraska, North Dakota, and South Dakota.
Allows the Authority to: (1) approve grants to States, local governments, Indian tribes, and public and nonprofit entities for approved economic development projects (such as transportation, job training, and public services); (2) use funds to supplement Federal grant requirements under specified circumstances; and (3) make grants to local development districts (as defined by this Act).
States that Northern Great Plains Inc., a Minnesota nonprofit entity, shall serve as a primary regional resource for the Authority.
Directs the Authority to designate annually, and obligate funds for, distressed counties and areas.
Authorizes specified FY 2002 through 2007 appropriations. Establishes a minimum State allotment.
Terminates the Authority as of October 1, 2007.
(Sec. 6029) Directs the Secretary to establish a Rural Business Investment Program under which the Secretary may: (1) enter into participation agreements with rural business investment companies to promote rural economic development and to establish venture capital programs; and (2) make grants to and guarantee debentures of rural business investment companies. Sets forth Program provisions.
(Sec. 6030) Establishes a rural strategic investment program which shall: (1) provide rural communities with flexible resources to develop comprehensive, collaborative, and locally-based strategic planning processes; and (2) implement innovative community and economic development strategies that optimize regional competitive advantages.
Directs the Secretary to establish a National Board on Rural America which shall carry out the program through grants to Regional Boards for: (1) regional strategic investment planning; and (2) innovative programs.
Provides for program funding through CCC fund transfers.
Subtitle B: Rural Electrification Act of 1936 - (Sec.6101) Amends the Rural Electrification Act of 1936 to direct the Secretary to guarantee bonds or notes issued by non-profit cooperative or other lender if the proceeds of the bonds or notes are used for electrification or telephone projects eligible for assistance under this Act (including the refinancing of bonds or notes issued for such projects). Prohibits a guarantee on a bond or note whose proceeds are to be used for electricity generation. Authorizes appropriations. Terminates program authority as of September 30, 2007.
(Sec. 6102) Authorizes the Secretary to make telephone loans to State or local governments, Indian tribes, or other public entities for expansion of rural 911 access and integrated emergency communications in rural areas. Authorizes FY 2002 through 2007 appropriations.
(Sec. 6103) Directs the Secretary to make or guarantee loans to eligible entities (including State and local governments) for the construction, improvement, or acquisition of facilities and equipment for broadband service in eligible rural communities (nonmetropolitan statistical areas with populations of not more than 20,000). Gives priority to rural communities without residential broadband service.
Permits loan proceeds to be used to refinance loans for broadband service deployment.
Obligates specified CCC funds for FY 2002 through 2007. Authorizes FY 2003 through 2007 appropriations in addition to such obligated amounts. Authorizes the use of specified television funds for such broadband service.
Terminates program authority after September 30, 2007.
Subtitle C: Food, Agriculture, Conservation, and Trade Act of 1990 - (Sec. 6201) Amends the Food, Agriculture, Conservation, and Trade Act of 1990 to repeal the Alternative Agricultural Research and Commercialization Act of 1990. (Terminates the Alternative Agricultural Research and Commercialization Corporation, related grants, and the Alternative Agricultural Research and Commercialization Revolving Fund, and transfers assets to the Secretary.)
(Sec. 6202) Directs the Secretary to establish a rural electronic commerce extension program to expand and enhance electronic commerce practices and technology for small businesses and microenterprises in rural areas through grants to development centers and land-grant colleges and universities. Requires 50 percent matching funds, which may be reduced if the recipient serves low-income or minority-owned businesses. Authorizes specified FY 2002 through 2007 appropriations, with set-asides for development center grants.
(Sec. 6203) Authorizes appropriations for rural area telemedicine and distance learning services through FY 2007.
Subtitle D: SEARCH Grants for Small Communities - Establishes the SEARCH Grant Program under which the Secretary shall, upon State request and through the State Rural Development Directors, award environmental grants to qualifying States for communities of not more than 2,500 persons. Authorizes specified FY 2002 through 2007 appropriations.
Subtitle E: Miscellaneous - (Sec. 6401) Amends the Agricultural Risk Protection Act of 2000 to define ``value-added agricultural product'' as any agricultural commodity or product that: (1) has undergone a change in physical state, or was produced in a manner that enhances its value, as demonstrated through a business plan; and (2) as a result of such change the customer base has been expanded, and a greater portion of the revenue derived from the processing of the agricultural commodity or product is available to the producer of such commodity or product.
Directs the Secretary, for each year beginning on October 1, 2002 through 2006, to use specified CCC funds for grants ($500,000 maximum per recipient) to an independent producer, agricultural producer group, farmer or rancher cooperative, or majority-controlled producer-based business venture to develop business plans and marketing strategies for value-added agricultural products.
Revises funding limits for the Agricultural Marketing Resource Center from $5 million under current law to five percent of the funding made available under this section.
(Sec. 6402) Directs the Secretary to establish the agriculture innovation center demonstration program to provide grants to eligible entities for assistance to agricultural producers in order to establish and enhance businesses to produce value-added agricultural commodities or products. Obligates specified funds through FY 2004 for such program, including an annual amount for university research on value-added projects' effects on producers and commodity markets.
(Sec. 6403) Amends FAIRA to eliminate the Fund for Rural America.
(Sec. 6404) Amends the Launching Our Communities' Access to Local Television Act to make specified CCC funds available through December 31, 2006, for rural local television broadcast signal loan guarantees.
(Sec. 6405) Authorizes the Secretary to make grants to local governments and Indian tribes to train rural firefighters and emergency medical personnel in firefighting, emergency medical practices, and hazardous material and bioagent response. Permits fund use for training center improvement and construction. Obligates specified amounts for training scholarships. Provides CCC funding for FY 2003 through 2007.
(Sec. 6406) Expresses 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 one or more senior officers or employees to provide rural policy leadership; and (3) create an intergovernmental rural policy working group comprised of the Special Assistant to the President for Rural Policy and senior officers and employees.
Title VII: Research and Related Matters - Subtitle A: Extensions - (Sec. 7101) Amends the Food, Agriculture, Conservation, and Trade Act of 1990 to extend through FY 2007: (1) the national rural information center clearinghouse; (2) the national genetics resources program; (3) high-priority research and extension initiatives; (4) the nutriment management research and extension initiative; (6) the agricultural telecommunications program; and (7) the assistive technology program for farmers with disabilities.
(Sec. 7102) Amends the National Agricultural Research, Extension, and Teaching Policy Act of 1977 to authorize appropriations for grants and fellowships for food and agricultural sciences education through FY 2007. Includes rural economic, community, and business development degrees within the program.
(Sec. 7103) Authorizes appropriations through FY 2007 for: (1) policy research centers; (2) the human nutrition intervention and health promotion research program; (3) the pilot research program to combine medical and agricultural research; (4) the nutrition education program; (5) animal health and disease research programs; (6) research on national and regional animal health or disease problems; (7) grants to upgrade agricultural and food sciences facilities at 1890 land-grant colleges, including Tuskegee University (increases FY2002 funding); (8) national research and training virtual centers (as redesignated by this Act); (9) education grant programs for Hispanic-serving institutions; (10) competitive grants for international agricultural science and education programs; (11) agricultural research programs; (12) extension education; (13) aquaculture; (14) rangeland research; and (15) grants for research on the production and marketing of alcohols and industrial hydrocarbons from agricultural commodities and forest products.
(Sec. 7115) Extends: (1) supplemental and alternative crop research project authority through FY 2007; and (2) the National Agricultural Research, Extension, Education, and Economics Advisory Board through September 30, 2007.
(Sec. 7123) Amends the Agricultural Research, Extension, and Education Reform Act of 1998 to extend through FY 2007: (1) partnerships for high-value agricultural product quality research; (2) the biobased products pilot program (authorizes appropriations through FY 2017); (3) the integrated research, education, and extension competitive grants program (five-year grant maximum); (4) authorization of appropriations for precision agriculture; (5) authorization of appropriations for the Thomas Jefferson Initiative for Crop Diversification; (6) authorization of appropriations for support for research regarding certain wheat and barley diseases; and (7) authorization of appropriations for the Office of Pest Management Policy.
(Sec. 7126) Amends the Equity in Educational Land-Grant Status Ac t of 1994 to extend through FY 2007: (1) institutional capacity building grants and authorization of appropriations for such grants; (2) institution research grants; and (3) authorization of appropriations (uncapped) for "1994 Institutions."
(Sec. 7135) Amends the Research Facilities Act to authorize appropriations for agricultural experiment stations research facilities through FY 2007.
(Sec. 7136) Amends the Competitive, Special, and Facilities Grant Act authorize appropriations for competitive, special, and facilities research grants through FY 2007.
(Sec. 7137) Amends the National Agricultural Research, Extension, and Teaching Policy Act Amendments of 1985 to authorize appropriations for Federal agricultural research facilities through FY 2007.
(Sec. 7138) Amends the Critical Agricultural Materials Act to authorize appropriations for critical agricultural materials research through FY 2007.
(Sec. 7139) Amend s the National Aquaculture Act of 1980 to authorize appropriations through FY 2007 for aquaculture activities of the Departments of Agriculture, Commerce, and the Interior.
Subtitle B: Modifications - (Sec. 7201) Amends the Equity in Educational Land-Grant Status Act of 1994 with respect to such Institutions to: (1) increase the authorization of appropriations for institutional payments; (2) revise the list of Institutions; (3) require accreditation in order to receive research grants; and (4) revise the full-time Indian student count formula.
(Sec. 7202) Amends the Hatch Act of 1887 to provide for the carryover and redistribution to another State of unused experiment station funds.
(Sec. 7203) Amends the National Agricultural Research, Extension, and Teaching Policy Act of 1977 with respect to1890 Institutions to revise the authorization of appropriations formulas for extension and research activities.
(Sec. 7204) Allows unexpended fiscal year funds provided to an Institution to be carried over for the following fiscal year. States that if any of such carried-over amounts are not expended by the end of the second fiscal year an equal amount shall be deducted from the Institution's next annual allotment, and redistributed to another Institution.
(Sec. 7205) Amends the Agricultural Research, Extension, and Education Reform Act of 1998 to provide permanent CCC funding for the initiative for future agriculture and food systems. Adds minority-serving institutions to the program.
(Sec. 7206) Makes 1994 Institutions eligible for the integrated grant program.
(Sec. 7207) Includes horticulture within the precision agriculture program.
Provides research grants to consortia of land-grant institutions for Karnal bunt disease control in wheat, barley, and triticale.
Authorizes the Secretary to establish a bovine Johne's disease control program. Authorizes FY 2003 through 2007 appropriations.
(Sec. 7208) Amends the Food, Agriculture, Conservation, and Trade Act of 1990 to include plant pathogens within the agricultural genome initiative.
Includes the following subjects within high-priority research and extension initiatives: (1) genetically modified agricultural products; (2) wind erosion; (3) crop loss; (4) land use management; (5) water and air quality; (6) revenue and insurance; (7) agrotourism; (8) fruit and vegetable productivity; (9) plant nitrogen fixation; (10) agricultural marketing; (11) environment and private lands; (12) livestock diseases and animal infectious diseases; (13) plant gene expression; (14) childhood obesity; (15) integrated pest management; (16) beef cattle genetics; (17) dairy pipeline cleaner; (18) development of publicly held plants and animals; and (19) sugarcane genetics.
Provides for first-time entity consideration within the assistive technology for farmers with disabilities program.
(Sec. 7209) Amends the National Agricultural Research, Extension, and Teaching Policy Act of 1977 to: (1) add a non-land grant institution member to the National Agricultural Research, Extension, Education, and Economic Advisory Board; (2) provide for an Foreign Agricultural Service overseas intern program; (3) include industrial oilseed crops within the program of grants for research on production and marketing of alcohols and industrial hydrocarbons from agricultural and forest products; and (4) authorize rangeland research grants for the Joe Skeen Institute for Rangeland Restoration.
(Sec. 7210) Amends the Food, Agriculture, Conservation, and Trade Act of 1990 to increase the set-aside from biotechnology outlays for biotechnology risk assessment research.
(Sec. 7212) Amends the National Agricultural Research, Extension, and Teaching Policy Act of 1977 to provide a phased-in matching grant requirement for 1890 land grant institutions (with waiver authority).
(Sec. 7213) Amends the Hatch Act to provide for a 50 percent matching requirement for land grant institutions in the Commonwealth of Puerto Rico, Guam, and the Virgin Islands (with waiver authority).
(Sec. 7214) Amends the Research Facilities Act to redefine"food and agricultural sciences."
(Sec. 7215) Amends the Smith-Lever Act to eliminate the funding limit on additional agricultural extension-related funding for "1994 Institutions."
(Sec. 7217) Amends the National Agricultural Research, Extension, and Teaching Policy Act of 1977 to provide that funds for a competitive agricultural research, education, or extension grant under this or any other Act shall be available for a two-year obligation period.
(Sec. 7218) Amends the Food, Agriculture, Conservation, and Trade Act of 1990 to provide funds for the organic agriculture research and extension initiative through FY 2007.
(Sec. 7219) Establishes in the Department the Senior Scientific Research Service.
(Sec. 7220) Directs the Secretary to terminate by January 31, 2003, certain Federal Schedule A civil service appointments for extension workers at land-grant institutions who hold dual government appointments. Provides continued eligibility for specified Federal health, life insurance, retirement, employment credit, and thrift savings benefits, subject to specified limitations.
(Sec. 7221) Amends the National Agricultural Research, Extension, and Teaching Policy Act of 1977 to authorize appropriations for biosecurity planning and response for FY 2002 through 2007. States that such grants shall be used to: (1) reduce the vulnerability of the U.S. food and agricultural system to chemical or biological attack; (2) continue partnerships with institutions of higher education and other institutions to help form stable, long-term programs to enhance U.S. biosecurity; (3) make grants to universities and qualified research institutions for research on counterbioterrorism; and (4) counter or otherwise respond to chemical or biological attack.
Directs the Secretary to make grants to colleges or universities to expand or upgrade security at their agricultural research facilities. Authorizes appropriations.
Expresses the sense of the Congress that funding for the Agricultural Research Service, the Animal and Plant Health Inspection Service, and other Department agencies with biosecurity responsibilities should be increased to improve the agencies' capacities to conduct research and analysis of, and respond to, bioterrorism and animal and plant diseases.
(Sec.7223) Amends the Agricultural Risk Protection Act of 2000, as amended by this Act, to authorize appropriations for carbon cycle research through FY 2007.
Subtitle C: Repeal of Certain Activities and Authorities - (Sec. 7301) Amends the Agricultural Research, Extension, and Education Reform Act of 1998 to repeal provisions respecting: (1) the food safety national conference and related reports; and (2) reimbursement of certain sheep promotion expenses.
(Sec. 7303) Amends the Food Security Act of 1985 to repeal the market expansion research program.
(Sec. 7304) Amends the Food, Agriculture, Conservation, and Trade Act of 1990 to repeal provisions respecting the national advisory board on agricultural weather.
(Sec. 7305) Amends the National Agricultural Research, Extension, and Teaching Policy Act Amendments of 1985 to repeal provisions respecting the agricultural information exchange with Ireland. and (2) the pesticide resistance and expansion of education studies.
(Sec. 7308) Amends the Research Facilities Act to repeal the provision respecting the agricultural research facilities task force.
Subtitle D: New Authorities - (Sec. 7402) Amends the National Agricultural Research, Extension, and Teaching Policy Act of 1977 to authorize the Secretary to make grants for the acquisition of special purpose scientific research equipment for the food and agricultural sciences programs of eligible colleges or universities; or State cooperative institutions. Authorizes FY 2002 through 2007 appropriations.
(Sec. 7403) Authorizes the Secretary, in carrying out agricultural research, education, or extension activities, to cooperate with one or more other Federal agencies (including the National Science Foundation) in issuing joint requests for proposals, or awarding grants, for similar or related projects or activities.
Authorizes joint peer review panels for grant evaluations.
(Sec. 7404) Requires the Secretary to establish a task force to evaluate the purpose and impact of the Agricultural Research Service on agricultural research. Obligates specified FY 2003 Service funds for such evaluation.
(Sec. 7405) Directs the Secretary to establish a grant program to foster training, education, outreach, and technical assistance for beginning farmers or ranchers. States that such grants shall: (1) be made to a collaborative State, local tribal, or regionally-based network or partnership of public or private entities; (2) not exceed a three-year term; (3) have a 25 percent matching requirement; and (4) obligate not less than 25 percent of funds for farm workers, and limited resource and socially disadvantaged beginning farmers or ranchers.
Directs the Secretary to establish beginning farmer and rancher education teams to conduct educational programs in diverse geographical areas of the United States.
Authorizes FY 2002 through 2007 appropriations.
(Sec. 7406) Expresses the sense of Congress that Federal investments in food and agricultural research should at least double over the next five years.
(Sec. 7407) Directs the Secretary to ensure that segregated data on the production and marketing of organic agricultural products is included in the ongoing baseline of agricultural production and marketing data.
(Sec. 7408) Directs the Secretary, through the Agricultural Research Service (including the National Agricultural Library) and the Economic Research Service, to facilitate access by research and extension professionals, farmers, and other interested persons in the United States, to organic research conducted abroad.
(Sec. 7409) Directs the Secretary to report on the extent to which producers and handlers of organic agricultural products are contributing to Department research and promotion programs.
(Sec. 7410) Expresses the sense of Congress that the Secretary should review and report on certain recommendations concerning food safety, ecological research, monitoring needs for transgenic crops with plant incorporated protectants, and the environmental effects of transgenic plants.
(Sec. 7411) Authorizes the Secretary to 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.
(Sec. 7412) Amends the Agricultural Research, Extension, and Education Reform Act of 1998 to direct the Secretary, through the Administrator of the Cooperative State Research, Education, and Extension Service, to 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 for pilot projects to expand their programs in rural areas and small towns. Authorizes FY 2003 through 2007 appropriations.
Subtitle E: Miscellaneous - (Sec.7503) Amends the National Agricultural Research, Extension, and Teaching Policy Act of 1977 to authorize the Secretary to make grants to eligible institutions in insular areas (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), to strengthen the capacity of such institutions to carry out distance food and agricultural education programs using digital network technologies. Directs the Secretary to make related resident instruction grants.
Authorizes FY 2002 through 2007 appropriations.
(Sec. 7504) Amends the Plant Protection Act to direct the Secretary, upon request of State, local, or tribal authorities, to: (1) 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 (prohibits such treatments unless the Secretary finds there is no other registered, feasible alternative); and (2) establish a program to identify alternatives to methyl bromide.
(Sec. 7505) Amends the Agricultural Research, Extension, and Education Reform Act of 1998 to direct the Secretary, through the Foreign Agricultural Service, to establish a grant program to develop agricultural biotechnology for developing countries. Authorizes FY 2002 through 2007 appropriations.
(Sec. 7506) States that the limitation on the authority of the Agricultural Research Service to purchase land using certain funds appropriated under the Agriculture, Rural Development, Food and Drug Administration, and Related Agencies Appropriations Act, 2002 shall not apply to the purchase of land for a research farm for the National Peanut Research Laboratory in Dawson, Georgia.
Title VIII: Forestry - Subtitle A: Cooperative Forestry Assistance Act of 1978 - (Sec. 8001) Amends the Cooperative Forestry Assistance Act of 1978 to repeal the forestry incentives and stewardship incentive programs.
(Sec. 8002) Directs the Secretary, in coordination with State authorities, to establish a forest land enhancement program, which shall provide: (1) financial assistance to State foresters; and (2) cost-share assistance to nonindustrial private forest landowners who agree to develop a management plan and implement approved activities for at least ten years. Includes among approved objectives and activities: (1) timber production; (2) water quality protection; (3) enhancement of forest habitats, wetlands, and riparian areas; (4) energy conservation; (5) hazardous fuels reduction; and (6) invasive species control. Obligates specified CCC funds for the program through September 30, 2007.
(Sec. 8003) Authorizes the Secretary to cooperate with State authorities respecting forest management fire protection. Directs the Secretary to establish a community and private land fire assistance program (which shall be federally administered and State implemented) to augment and focus Federal firefighting activities on Federal, State, and local levels. Authorizes appropriations.
Subtitle B: Amendments to Other Laws - (Sec. 8101) Amends the Renewable Resources Extension Act of 1978 to: (1) direct the Secretary to establish a sustainable forestry outreach initiative; and (2) authorize FY 2002 through 2007 appropriations for renewable resources extension activities.
(Sec.8102) Amends the Global Climate Change Prevention Act of 1990 to extend authorization of appropriations for the Office of International Forestry through FY 2007.
Subtitle C: Miscellaneous Provisions - Expresses congressional reaffirmation of the importance of the McIntire-Stennis Cooperative Forestry Act.
Title IX: Energy - (Sec. 9002) Requires, with cost-based, Solid Waste Disposal Act, and flexibility exemptions, Federal agencies to comply with biobased product procurement guidelines developed under this Act. Requires: (1) the Secretary to prepare such guidelines; (2) the Office of Federal Procurement Policy to implement such policies; and (3) each Federal agency to develop a biobased procurement policy. Authorizes appropriations. Obligates specified FY 2002 through 2007 CCC funds for biobased product testing, with discretionary preference for products for which private firms share testing costs.
(Sec. 9003) Directs the Secretary to make cost-share grants to eligible entities to develop and construct biorefineries for projects that demonstrate the commercial viability of biomass conversion to fuels or chemicals. Authorizes FY 2002 through 2007 appropriations.
(Sec. 9004) Directs the Secretary to make grants to eligible entities for a biodiesel fuel education program. Obligates specified CCC funds for FY 2003 through 2007.
(Sec. 9005) Directs the Secretary to make cost-share grants to eligible entities to assist farmers, ranchers, and rural small businesses to become more energy efficient, and in using renewable energy technology and resources, including provision of farm and ranch energy audits. Authorizes FY 2002 through 2007 appropriations.
(Sec. 9006) Directs the Secretary to make additional loans, loan guarantees, and cost-share grants to farmers, ranchers, and rural small businesses to purchase renewable energy systems and make energy efficiency improvements. Obligates specified CCC funds for FY 2003 through 2007.
(Sec. 9007) Directs the Secretary and the Secretary of Energy to enter into a memorandum of cooperation in the application of hydrogen and fuel cell technology programs for rural communities and agricultural producers.
(Sec. 9008) Amends the Biomass Research and Development Act of 2000 to: (1) revise funding provisions to provide CCC funding through FY2007, and authorize additional specified appropriations for FY 2002 through 2007; and (2) extend authority through September 30, 2007.
(Sec. 9009) Amends the Agricultural Risk Protection Act of 2000 to authorize the Secretary, in cooperation with departments and agencies participating in the U.S. Global Change Research Program and with eligible entities, to carry out research to promote understanding of: (1) the flux of carbon in soils and plants (including trees); and (2) the exchange of other greenhouse gases from agriculture. Authorizes FY 2002 through 2007 appropriations.
Authorizes the Secretary, in cooperation with departments and agencies participating in the U.S. Global Change Research Program, local extension agents, agricultural experts from institutions of higher education, and other local agricultural or conservation organizations, to implement extension projects (including on-farm projects with direct involvement of agricultural producers) to monitor the carbon sequestering benefits of conservation practices and the exchange of greenhouse gas emissions from agriculture which demonstrate methods of measuring and monitoring: (1) changes in carbon content and other carbon pools in soils and plants (including trees); and (2) the exchange of other greenhouse gases. Authorizes FY 2002 through 20087 appropriations.
(Sec. 9010) Directs the Secretary to continue the bioenergy (biodiesel and fuel grade ethanol) program of payments to eligible producers to encourage increased purchases of eligible commodities for the purpose of expanding bioenergy production. Obligates specified CCC funds for FY 2003 through 2006.
Title X: Miscellaneous - Subtitle A: Crop Insurance - (Sec. 10001) Amends the Federal Crop Insurance Act to provide crop insurance for sweet potatoes.
(Sec. 10002) Removes the time limit on the prohibition of continuous coverage.
(Sec. 10003) Requires that certain quality loss adjustment procedures be made by the 2004 reinsurance year.
Directs the Secretary to accept evidence of the quality of agricultural commodities delivered to: (1) U.S. licensed warehouse operators; (2) State licensed warehouse operators who have entered into a CCC storage agreement; and (3) warehouse operators who are not State licensed but are in compliance with State warehouse law, and who have entered into a CCC storage agreement.
(Sec. 10004) Directs CCC to carry out the adjusted gross revenue insurance pilot program in effect for the 2002 reinsurance year through at least the 2004 reinsurance year. Expands the program to include at least eight counties in each of California and Pennsylvania.
(Sec. 10005) Expresses the sense of Congress that the Federal Crop Insurance Corporation should address producer needs through pilot program expansion and coverage under the Federal Crop Insurance Act, including: (1) crop revenue insurance for pecan producers in Georgia; and (2) continuous wheat crop coverage in Kansas.
(Sec. 10006) Directs the Secretary to report on specialty crop insurance.
Subtitle B: Disaster Assistance - (Sec. 10101) Amends FAIRA to include sea grass and sea oats within the noninsured crop disaster assistance program.
(Sec. 10102) Amends the Food, Agriculture, Conservation, and Trade Act of 1990 to eliminate the annual cap for emergency grants to assist low-income migrant and seasonal farm workers.
(Sec. 10103) Amends the Agricultural Risk Protection Act of 2000 regarding loans to seed producers who were unsecured creditors of a seed company that filed for bankruptcy in 2000 to lengthen such loans from 18 months to 36 months.
(Sec. 10104) Authorizes the Secretary to provide dairy and other livestock producers who have suffered economic losses with assistance, including feed assistance and indemnity payments.
(Prohibits CCC fund use for such assistance.) Authorizes appropriations.
(Sec. 10105) Directs the Secretary to use specified CCC funds for FY 2002 to make payments to apple producers for the loss of markets during the 2000 crop year.
(Sec. 10106) Directs the Secretary to use specified CCC funds to make a grant to New York State for onion producers in Orange County, New York, who have suffered crop losses during one or more of the 1996 through 2000 crop years.
(Sec. 10107) Directs the Secretary to provide emergency disaster assistance for the commercial fishery failure with respect to Northeast multispecies fisheries. Directs such funds' use to support a voluntary fishing capacity reduction program in the Northeast multispecies fishery that: (1) is certified by the Secretary of Commerce; and (2) permanently revokes multispecies limited access permits so as to obtain expedited fishing capacity reduction and prevent capacity replacement. Authorizes appropriations. Terminates the program one year after enactment of this Act.
(Sec. 10108) Directs the Secretary to conduct a study of the feasibility of expanding crop insurance and noninsured crop assistance eligibility to agricultural producers experiencing disaster conditions caused primarily by Federal action restricting irrigation water access, including lack of water access caused by the Secretary of the Interior's failure to fulfill a contract in accordance with the Central Valley Project Improvement Act.
Subtitle C: Tree Assistance Program - Directs the Secretary to provide assistance (replanting assistance and/or seedlings) to eligible commercial orchardists who have suffered qualifying tree losses (greater than 15 percent mortality rate) caused by a natural disaster. Authorizes appropriations.
Subtitle D: Animal Welfare - (Sec. 10301) Amends the Animal Welfare Act to exclude birds, rats, and mice bred for research from coverage under such Act.
(Sec. 10302) Makes it unlawful, with respect to live bird fighting ventures in a State where such ventures would not be in violation of State law, for a person to sponsor or exhibit a bird in a 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 such participation.
(Sec. 10303) Increases monetary penalties for animal welfare violations. Includes within "intrastate or foreign commerce" movement from a State into a foreign country.
(Sec. 10304) Directs the National Research Council to report on the implications of including rats, mice, and birds within the definition of "animal" under Animal Welfare Act regulations.
(Sec. 10305) Expresses the sense of Congress that the Secretary should continue violation tracking and reporting under the Humane Methods of Slaughter Act of 1958, fully enforce such Act to ensure humane livestock slaughter and worker safety, and bring about improvement of products and economies in slaughtering operations. States that U.S. policy should be that livestock handling and slaughter should be carried out only by humane methods.
Subtitle E: Animal Health Protection - Animal Health Protection Act - Authorizes the Secretary, with notice to the Secretary of the Treasury, to restrict the importation, entry, or further movement in the United States, or order the destruction or removal, of animals (including livestock) and related conveyances and facilities for reasons of: (1) livestock pest or disease control; or (2) humane treatment. Authorizes related activities respecting exportation, interstate movement, cooperative agreements, enforcement and penalties, seizure, and quarantine and disease and pest eradication.
Authorizes the Secretary to: (1) establish a veterinary accreditation program; (2) produce and sell sterile screwworms to foreign countries and international organizations; and (3) enter into reimbursable fee agreements for preclearance abroad of animals or articles for movement into the United States.
Sets forth enforcement and criminal and civil penalties with respect to violations of such provisions.
Authorizes appropriations. Authorizes the Secretary to transfer necessary funds in a livestock pest or disease related emergency.
Subtitle F: Livestock - (Sec. 10501) Amends Federal law to make permanent the provision allowing the Postal Service to require air carriers to accept day-old poultry as mail if the air carrier allows the shipment of any live animals as cargo. Extends coverage to honeybees.
(Sec. 10502) Amends the Packers and Stockyards Act, 1921 to include "swine contractor" as a covered entity under such Act.
(Sec. 10503) Provides that notwithstanding any provision in a contract or marketing agreement between a livestock or poultry producer and a processor for a term of one year or more that provides for information confidentiality, a party to the contract shall not be prohibited from discussing the contract with Federal, State, or specified contract-related parties.
(Sec. 10504) Authorizes the Secretary to develop a program to maintain in all U.S. regions a sufficient number of Federal and State veterinarians who are well trained in recognition and diagnosis of exotic and endemic animal diseases.
(Sec. 10505) Amends the Food, Agriculture, Conservation, and Trade Act of 1990 to extend the pseudorabies eradication program through FY 2007.
Subtitle G: Specialty Crops - (Sec. 10601) Amends the Agricultural Adjustment Act, reenacted with amendments by the Agricultural Marketing Agreement Act of 1937, to authorize the Secretary to issue marketing orders for caneberries (including raspberries, blackberries, and loganberries).
(Sec. 10602) Amends Federal law to increase the amount of certain funds (section 32) available for agricultural exports without specified limitations.
(Sec. 10603) Directs the Secretary to use specified funds to purchase fruits, vegetables, and other specialty food crops. Obligates specified amounts for the purchase of fresh fruits and vegetables for distribution to schools and service institutions in accordance with the Richard B. Russell National School Lunch Act. Directs the Secretary to provide for the Secretary of Defense to serve as the related servicing agency.
(Sec. 10604) Amends the Food Security Act of 1985 to revise specified protection provisions for purchasers of farm products.
(Sec. 10605) Amends the Farmer-to-Consumer Direct Marketing Act of 1976 to direct the Secretary to carry out a farmers' market promotion program of grants to eligible entities for projects to establish, expand, and promote farmers' markets. Authorizes FY 2002 through 2007 appropriations.
Directs the Secretary to: (1) work with State Governors to develop programs to train farmers' market managers; (2) establish a program to train cooperative extension service employees in direct marketing techniques; and (3) work with producers to develop farmers' markets.
(Sec. 10606) Directs the Secretary, through the Agricultural Marketing Service, to use specified FY 2002 CCC funds to establish a national organic certification cost-share program.
(Sec. 10607) Amends the Federal Agriculture Improvement and Reform Act of 1996 to exempt certified organic products from commodity promotion assessments.
(Sec. 10608) Directs the Secretary to establish a cranberry reserve program to purchase wetlands or buffer strips adjacent to a wetland that: (1) is used, and has a history of being used, for cranberry cultivation, or is an integral component of a cranberry operation; and (2) is located in an environmentally sensitive area. Authorizes specified appropriations.
Subtitle H: Administration - (Sec. 107901) Amends Federal law with respect to the initial rate of basic pay for county committee employees.
(Sec. 10702) Amends the Commodity Exchange Act with respect to Commodity Futures Trading Commission employee pay comparability.
(Sec. 10703) Sets forth provisions with respect to Department overtime and holiday pay.
(Sec. 10704) Amends the Department of Agriculture Reorganization Act of 1994 to establish within the Department the position of Assistant Secretary of Agriculture for Civil Rights.
(Sec. 10705) Amends the Federal Agriculture Improvement and Reform Act of 1996 to make the Graduate School's financial records available to the Comptroller General for audit purposes.
(Sec. 10706) Directs the Secretary to: (1) use specified CCC funds to cover commodity program administrative costs (obligates funds for the information management system); and (2) develop an information management system for common use by the Federal Crop Insurance Corporation and the Farm Service Agency, which shall be available for use by other agencies and approved insurance providers. Authorizes FY 2003 through 2008 appropriations for the information management system.
(Sec. 10707) Amends the Food, Agriculture, Conservation, and Trade Act of 1990 to direct the Secretary to carry out an outreach and technical assistance program to assist socially disadvantaged farmers and ranchers in: (1) owning and operating farms and ranches; and (2) participating in Department programs. Authorizes the Secretary to make grants to, and enter into contracts with, eligible entities to provide related information and technical assistance. Authorizes specified appropriations for each of FY 2002 through 2007.
(Sec. 10708) Amends the Food, Agriculture, Conservation, and Trade Act of 1990 to ensure compilation and disclosure of data to assess and hold the Department accountable for the nondiscriminatory participation of socially disadvantaged farmers and ranchers in Department programs.
Subtitle I: General Provisions - (Sec. 10801) Amends the Cotton Statistics and Estimates Act to extend cotton classification services through FY 2007.
(Sec. 10802) Directs the Secretary to develop and implement a public education program respecting the use of biotechnology in producing food for human consumption. Authorizes appropriations through FY 2007 (Sec. 10803) Authorizes the Secretary, through the Natural Resources Conservation Service, to provide financial and technical assistance to the Chino Dairy Preserve Project, San Bernadino County, California.
(Sec. 10804) Prohibits the Grasslands Research Laboratory, El Reno, Oklahoma, from being transferred or declared surplus before December 31, 2007.
(Sec. 10805) Authorizes the Secretary to award grants to the Food and Agricultural Policy Research Institute for independent research on the effects of alternative domestic, foreign, and trade policies on the agricultural sector, including effects on: (1) commodity prices; (2) supply and demand conditions for similar products; (3) Federal costs; (4) farm income; (5) food costs; and (6) trade volume. Authorizes FY 2003 through 2007 appropriations.
(Sec. 10806) Requires for purposes of the misbranded food and import and export provisions of the Federal Food, Drug, and Cosmetic Act that: (1) fish be classified within the family Ictaluridae to be considered "catfish" (thereby excluding the fish Pangasius bocourti from such consideration); and (2) ``ginseng'' or any name that includes the word ``ginseng'' shall be used in reference to an herb or herbal ingredient that is part of the plant of one of the species of the genus Panax.
(Sec. 10807) Establishes the Food Safety Commission, which shall make recommendations to enhance U.S. food system safety. Authorizes appropriations. Terminates the Commission 60 days after submission of certain required reports.
(Sec. 10808) Directs the Secretary to conduct an education program regarding the availability and safety of processes and treatments that eliminate or reduce pathogen levels in meat, meat food products, poultry, and poultry products. Authorizes appropriations.
Amends the Federal Food, Drug, and Cosmetic Act to deem a food that is pasteurized as misbranded unless: (1) such food has been subjected to a safe process or treatment that is: (1) prescribed by regulation as pasteurization for such food; and (2) reasonably certain to eliminate most resistant microorganisms of public health significance for at least the shelf live of the food, and is the subject of a notification to the Secretary.
(Sec. 10809) Directs the Secretary of Health and Human Services to promulgate a proposed and a final rule governing the labeling of irradiated food. Provides that pending completion of such process any person may seek FDA approval of an irradiation labeling claim.
(Sec. 10810) Revises criminal penalties for violations of the Plant Protection Act.
(Sec. 10811) Amends the Food, Agriculture, Conservation, and Trade Act of 1990 to require that the Animal and Plant Health Inspection Service conduct airport preclearance quarantine inspections of persons, baggage, cargo and other items destined from Hawaii to the U.S. mainland, Guam, Puerto Rico, and the U.S. Virgin Islands. Directs that such provision shall not be implemented unless the Service's appropriation for inspection, quarantine, and regulatory activities is increased by $3 million in a FY 2003 appropriations Act.
(Sec. 10812) Amends Federal law to extend congressional consent to the interstate compact respecting restoration of Atlantic salmon to the Connecticut River Basin and creation of the Connecticut River Atlantic Salmon Commission for an additional 20 years.
(Sec. 10813) Amends the No Child Left Behind Act of 2001 to treat as timely filed an application for a FY 2000 payment (currently FY 2002) from Pine Point School, School District 25, Minnesota.
(Sec. 10814) Amends Federal law to extend certain family farm bankruptcy provisions for seven months.
(Sec. 10815) Directs the Secretary to report on: (1) the scope and causes of nonambulatory livestock; (2) humane treatment of nonambulatory livestock; and (3) the extent to which nonambulatory livestock may present handling and disposition problems for stockyards, market agencies, and dealers. States that if necessary, the Secretary shall promulgate regulations for the humane treatment, handling, and disposition of nonambulatory livestock.
(Sec. 10816) Amends the Agricultural Marketing Act of 1946 to require a retailer of a covered commodity (beef, lamb, pork, wild or farm-raised fish, perishable agricultural commodities or peanuts, but not processed items containing such commodities) to inform consumers at the final point of sale of a commodity's country of origin. States that U.S. designation of origin may be used only if the article is exclusively from an animal, fish, peanut, or perishable commodity that is, as appropriate, born, hatched, produced, raised, harvested, and slaughtered, or processed in the United States. Exempts food service establishments from such requirements.
Prohibits the Secretary from using a mandatory country of origin identification system, but permits use of certain current certification programs. Provides for violation warnings and fines.
Subtitle J: Miscellaneous Studies and Reports - (Sec. 10901) Directs the Secretary to conduct studies or make reports respecting: (1) specialty crop purchases; (2) the promotion, marketing, and purchasing of U.S. poached and canned salmon under Department food and nutrition programs; (3) the effects of farm program payments on farmers and farm infrastructure, including a Texas-based rice production study; (4) geographically disadvantaged farmers and ranchers; and (5) the operation of agricultural and natural resource programs on tribal lands.
(Sec. 10903) Directs the Comptroller General to conduct studies of: (1) the effects on producers of updating agricultural yield bases; and (2) State actions taken under the tobacco settlement agreement.
(Sec. 10905) Directs the Secretary of the Interior to conduct a study of the feasibility of providing adequate fish passage at the Chiloquin Dam on the Sprague River, Oregon.
(Sec. 10907) Authorizes the Secretary to conduct studies respecting: (1) the transmission of spongiform encephalopathy in deer, elk, and moose; (2) chronic wasting disease (including the risks that chronic wasting disease poses to livestock); and (3) the number of doses of livestock disease vaccines that should be available, are currently available, and necessary acquisition actions to protect against livestock diseases that could be introduced into the United States.
(Sec. 10909) Directs the Administrator of the Environmental Protection Agency to report on the electronic commerce sale and use of agricultural pesticides.
[107th Congress Public Law 171]
[From the U.S. Government Publishing Office]
<DOC>
[DOCID: f:publ171.107]
[[Page 133]]
FARM SECURITY AND RURAL INVESTMENT ACT OF 2002
[[Page 116 STAT. 134]]
Public Law 107-171
107th Congress
An Act
To provide for the continuation of agricultural programs through fiscal
year 2007, and for other purposes. <<NOTE: May 13, 2002 - [H.R.
2646]>>
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress <<NOTE: Farm Security and Rural
Investment Act of 2002.>> assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) <<NOTE: 7 USC 7901 note.>> 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
Sec. 1001. Definitions.
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. 1301. Definitions.
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.
[[Page 116 STAT. 135]]
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. 2202. Enrollment.
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.
[[Page 116 STAT. 136]]
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. 2601. Definitions.
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.
Sec. 2702. Regulations.
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
Sec. 4001. Short title.
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.
[[Page 116 STAT. 137]]
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. 5001. Direct 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. 5101. Direct 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.
[[Page 116 STAT. 138]]
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. 5310. Definitions.
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.
[[Page 116 STAT. 139]]
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. 6301. Definitions.
Sec. 6302. SEARCH grant program.
Sec. 6303. Report.
Sec. 6304. Funding.
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.
[[Page 116 STAT. 140]]
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.
Sec. 7139. Aquaculture.
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. 7502. Definitions.
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.
[[Page 116 STAT. 141]]
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. 9001. Definitions.
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. 10201. Definitions.
Sec. 10202. Eligibility.
Sec. 10203. Assistance.
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. 10401. Short title.
Sec. 10402. Findings.
Sec. 10403. Definitions.
Sec. 10404. Restriction on importation or entry.
[[Page 116 STAT. 142]]
Sec. 10405. Exportation.
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. 10411. Cooperation.
Sec. 10412. Reimbursable agreements.
Sec. 10413. Administration and claims.
Sec. 10414. Penalties.
Sec. 10415. Enforcement.
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.
[[Page 116 STAT. 143]]
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. <<NOTE: 7 USC 7901.>>
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
[[Page 116 STAT. 144]]
farm, as established under section 1101, on which direct
payments and counter-cyclical payments are made.
(11) Payment yield.--
(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. <<NOTE: 7 USC 7911.>> 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
[[Page 116 STAT. 145]]
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
[[Page 116 STAT. 146]]
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:
[[Page 116 STAT. 147]]
(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:
[[Page 116 STAT. 148]]
(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
[[Page 116 STAT. 149]]
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. <<NOTE: 7 USC 7913.>> 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.
(d) Time for Payment.--
(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.
[[Page 116 STAT. 150]]
SEC. 1104. <<NOTE: 7 USC 7914.>> 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.
(c) Target Price.--
(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:
[[Page 116 STAT. 151]]
(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.
(f) Time for Payments.--
(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--
[[Page 116 STAT. 152]]
(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.
(B) 2007 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. <<NOTE: 7 USC 7915.>> 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
[[Page 116 STAT. 153]]
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. <<NOTE: 7 USC 7916.>> 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:
(A) Fruits.
(B) Vegetables (other than lentils, mung beans, and
dry peas).
[[Page 116 STAT. 154]]
(C) Wild rice.
(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. <<NOTE: 7 USC 7917.>> 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.
[[Page 116 STAT. 155]]
SEC. 1108. <<NOTE: 7 USC 7918.>> 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. <<NOTE: 7 USC 7931.>> 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. <<NOTE: 7 USC 7932.>> 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.
[[Page 116 STAT. 156]]
(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. <<NOTE: 7 USC 7933.>> 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. <<NOTE: 7 USC 7934.>> 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;
[[Page 116 STAT. 157]]
(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 <<NOTE: Regulations.>> 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.
[[Page 116 STAT. 158]]
(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. <<NOTE: 7 USC 7935.>> 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.
(c) Payment Rate.--
(1) In general.--In the case of a loan commodity, the
payment rate shall be the amount by which--
(A) the loan rate established under section 1202 for
the loan commodity; exceeds
(B) the rate at which a marketing assistance loan
for the loan commodity may be repaid under section 1204.
[[Page 116 STAT. 159]]
(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. <<NOTE: 7 USC 7936.>> PAYMENTS IN LIEU OF LOAN DEFICIENCY
PAYMENTS FOR GRAZED ACREAGE.
(a) Eligible Producers.--
(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,
[[Page 116 STAT. 160]]
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.
(b) Payment Amount.--
(1) In general.--The amount of a payment made under this
section to a producer on a farm described in subsection (a)(1)
shall be equal to the amount determined by multiplying--
(A) the loan deficiency payment rate determined
under section 1205(c) in effect, as of the date of the
agreement, for the county in which the farm is located;
by
(B) the payment quantity determined by multiplying--
(i) the quantity of the grazed acreage on the
farm with respect to which the producer elects to
forgo harvesting of wheat, barley, or oats; and
(ii) 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.
[[Page 116 STAT. 161]]
(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. <<NOTE: 7 USC 7937.>> 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
[[Page 116 STAT. 162]]
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.--
(1) Establishment.--
(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 <<NOTE: Deadlines.>> 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).
[[Page 116 STAT. 163]]
(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
[[Page 116 STAT. 164]]
Department of Agriculture, and the Department of
the Treasury--
(I) the carry-over of upland cotton
at the beginning of the marketing year
(adjusted to 480-pound bales) in which
the quota is established;
(II) production of the current crop;
and
(III) imports to the latest date
available during the marketing year.
(ii) Demand.--The term ``demand'' means--
(I) the average seasonally adjusted
annual rate of domestic mill consumption
during the most recent 3 months for
which data are available; and
(II) the larger of--
(aa) average exports of
upland cotton during the
preceding 6 marketing years; or
(bb) cumulative exports of
upland cotton plus outstanding
export sales for the marketing
year in which the quota is
established.
(iii) Limited global import quota.--The term
``limited global import quota'' means a quantity
of imports that is not subject to the over-quota
tariff rate of a tariff-rate quota.
(E) Quota entry period.--When a quota is established
under this subsection, cotton may be entered under the
quota during the 90-day period beginning on the date the
quota is established by the Secretary.
(2) No overlap.--Notwithstanding paragraph (1), a quota
period may not be established that overlaps an existing quota
period or a special quota period established under subsection
(b).
SEC. 1208. <<NOTE: 7 USC 7938.>> 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),
[[Page 116 STAT. 165]]
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. <<NOTE: 7 USC 7939.>> 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;
(B) present--
(i) certified scale tickets from an inspected,
certified commercial scale, including a licensed
warehouse, feedlot, feed mill, distillery, or
other similar entity approved by the Secretary,
pursuant to regulations issued by the Secretary;
or
(ii) field or other physical measurements of
the standing or stored crop in regions of the
United States, as determined by the Secretary,
that do not have certified commercial scales from
which certified scale tickets may be obtained
within reasonable proximity of harvest operation;
(C) certify that they were the owners of the feed
grain at the time of delivery to, and that the quantity
to be placed under loan under this subsection was in
fact harvested on the farm and delivered to, a feedlot,
feed mill, or commercial or on-farm high-moisture
storage facility, or to a facility maintained by the
users of corn and grain sorghum in a high moisture
state; and
(D) comply with deadlines established by the
Secretary for harvesting the corn or grain sorghum and
submit applications for loans under this subsection
within deadlines established by the Secretary.
(2) Eligibility of acquired feed grains.--A loan under this
subsection shall be made on a quantity of corn or grain sorghum
of the same crop acquired by the producer equivalent to a
quantity determined by multiplying--
(A) the acreage of the corn or grain sorghum in a
high moisture state harvested on the producer's farm; by
[[Page 116 STAT. 166]]
(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. <<NOTE: 7 USC 7951.>> DEFINITIONS.
In this subtitle:
(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
[[Page 116 STAT. 167]]
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. <<NOTE: 7 USC 7952.>> 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.
[[Page 116 STAT. 168]]
(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
[[Page 116 STAT. 169]]
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.
[[Page 116 STAT. 170]]
(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. <<NOTE: 7 USC 7953.>> AVAILABILITY OF DIRECT PAYMENTS FOR
PEANUTS.
(a) Payment Required.--
(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.
(e) Time for Payment.--
(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) <<NOTE: Deadline.>> 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
[[Page 116 STAT. 171]]
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. <<NOTE: 7 USC 7954.>> AVAILABILITY OF COUNTER-CYCLICAL
PAYMENTS FOR PEANUTS.
(a) Payment Required.--
(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.
[[Page 116 STAT. 172]]
(3) The payment yield for the farm.
(g) Time for Payments.--
(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.--
(A) 2002 crop year.--
(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).
[[Page 116 STAT. 173]]
(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.
(C) 2007 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. <<NOTE: 7 USC 7955.>> 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.);
[[Page 116 STAT. 174]]
(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. <<NOTE: 7 USC 7956.>> 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.
[[Page 116 STAT. 175]]
(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:
(A) Fruits.
(B) Vegetables (other than lentils, mung beans, and
dry peas).
(C) Wild rice.
(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. <<NOTE: 7 USC 7957.>> 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
[[Page 116 STAT. 176]]
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.
(c) Term of Loan.--
(1) In general.--A marketing assistance loan for peanuts
under subsection (a) shall have a term of 9 months beginning on
the first day of the first month after the month in which the
loan is made.
(2) Extensions prohibited.--The Secretary may not extend the
term of a marketing assistance loan for peanuts under subsection
(a).
(d) Repayment Rate.--
(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.
[[Page 116 STAT. 177]]
(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
[[Page 116 STAT. 178]]
under this subtitle only in a manner that is consistent with such
activities in regard to other commodities.
SEC. 1308. <<NOTE: 7 USC 7958.>> 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.
(3) Terms.--
(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.
[[Page 116 STAT. 179]]
(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.
(g) Transition Rule.--
(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. <<NOTE: 7 USC 7959.>> 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
[[Page 116 STAT. 180]]
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.
(c) Time for Payment.--
(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--
(1) $0.11 per pound; by
(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.
[[Page 116 STAT. 181]]
(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.--
[[Page 116 STAT. 182]]
(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. <<NOTE: 7 USC 7960.>> 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
[[Page 116 STAT. 183]]
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.
``(d) Term of Loans.--
[[Page 116 STAT. 184]]
``(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.
``(B) Minimum payments.--
``(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.--
[[Page 116 STAT. 185]]
``(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.
[[Page 116 STAT. 186]]
``(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.
[[Page 116 STAT. 187]]
``(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 <<NOTE: 7 USC 7272 note.>> 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. <<NOTE: 7 USC 7971.>> 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:
[[Page 116 STAT. 188]]
``PART VII--FLEXIBLE MARKETING ALLOTMENTS FOR SUGAR
``SEC. 359a. <<NOTE: 7 USC 1359aa.>> DEFINITIONS.
``In this part:
``(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--
``(A) a State;
``(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. <<NOTE: 7 USC 1359bb.>> FLEXIBLE MARKETING ALLOTMENTS FOR
SUGAR.
``(a) Sugar Estimates.--
``(1) In <<NOTE: Deadline.>> 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.
``(b) Sugar Allotments.--
``(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).
[[Page 116 STAT. 189]]
``(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.
``(c) Prohibitions.--
``(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. <<NOTE: 7 USC 1359cc.>> 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.
[[Page 116 STAT. 190]]
``(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).
``(2) Offshore allotment.--
``(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.--
[[Page 116 STAT. 191]]
``(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. <<NOTE: 7 USC 1359dd.>> 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.
``(b) Hearing and Notice.--
``(1) Cane sugar.--
``(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;
[[Page 116 STAT. 192]]
``(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.
``(E) New entrants.--
``(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
[[Page 116 STAT. 193]]
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.
``(2) Beet sugar.--
``(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).
[[Page 116 STAT. 194]]
``(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.
``(D) Adjustments.--
``(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
[[Page 116 STAT. 195]]
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
[[Page 116 STAT. 196]]
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.
[[Page 116 STAT. 197]]
``SEC. 359e. <<NOTE: 7 USC 1359ee.>> 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
[[Page 116 STAT. 198]]
``(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. <<NOTE: 7 USC 1359ff.>> 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.
``(2) Arbitration.--
``(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 <<NOTE: Deadlines.>> 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 <<NOTE: Deadline.>> 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.--
``(1) In general.--
``(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
[[Page 116 STAT. 199]]
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
[[Page 116 STAT. 200]]
be considered as harvested for the production of sugar
or seed for purposes of this paragraph.
``(5) Violation.--
``(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.
[[Page 116 STAT. 201]]
``(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 <<NOTE: Deadline.>>
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. <<NOTE: 7 USC 1359gg.>> 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--
[[Page 116 STAT. 202]]
``(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. <<NOTE: 7 USC 1359hh.>> 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. <<NOTE: 7 USC 1359ii.>> 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.
``(b) Procedure.--
``(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.
[[Page 116 STAT. 203]]
``(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. <<NOTE: 7 USC 1359jj.>> 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
[[Page 116 STAT. 204]]
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. <<NOTE: 7 USC 1359kk.>> 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:
Argentina
Australia
Barbados
Belize
Bolivia
Brazil
Colombia
Republic of the Congo
Costa Rica
Dominican Republic
Ecuador
El Salvador
Fiji
Gabon
Guatemala
Guyana
Haiti
Honduras
India
Cote D'Ivoire, formerly known as
the Ivory Coast
Jamaica
Madagascar
Malawi
Mauritius
Mexico
Mozambique
Nicaragua
Panama
Papua New Guinea
Paraguay
Peru
Philippines
St. Kitts and Nevis
South Africa
Swaziland
Taiwan
Thailand
Trinidad-Tobago
Uruguay
Zimbabwe.''.
[[Page 116 STAT. 205]]
Subtitle E--Dairy
SEC. 1501. <<NOTE: 7 USC 7981.>> 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.
(c) Purchase Prices.--
(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. <<NOTE: 7 USC 7982.>> 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.
[[Page 116 STAT. 206]]
(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 <<NOTE: Contracts.>> 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
(3) 45 percent.
(d) Payment Quantity.--
(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 <<NOTE: Deadline.>> 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 <<NOTE: Contracts.>> 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
[[Page 116 STAT. 207]]
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;
``(3) cheese; and
``(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.''.
[[Page 116 STAT. 208]]
(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:
``(6) Importers.--
``(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:
``(e) Budgets.--
``(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.''.
[[Page 116 STAT. 209]]
(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:
``(6) Importers.--
``(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.''.
[[Page 116 STAT. 210]]
(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. <<NOTE: 7 USC 7983.>> 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 <<NOTE: Deadline.>> 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.
[[Page 116 STAT. 211]]
(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. <<NOTE: 7 USC 7984.>> 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 <<NOTE: Deadline.>> 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. <<NOTE: 7 USC 7991.>> ADMINISTRATION GENERALLY.
(a) Use of Commodity Credit Corporation.--The Secretary shall use
the funds, facilities, and authorities of the Commodity Credit
Corporation to carry out this title.
(b) Determinations by Secretary.--A determination made by the
Secretary under this title shall be final and conclusive.
(c) Regulations.--
(1) In general.--Not <<NOTE: Deadline.>> 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 <<NOTE: Regulations.>> 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'');
[[Page 116 STAT. 212]]
(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. <<NOTE: 7 USC 7992.>> 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
[[Page 116 STAT. 213]]
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
[[Page 116 STAT. 214]]
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--
(1) in paragraph (5)--
(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)--
[[Page 116 STAT. 215]]
(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. <<NOTE: 7 USC 1308-3a.>> 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.
``(b) Limitation.--
``(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
[[Page 116 STAT. 216]]
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. <<NOTE: 7 USC 7993.>> 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--
(1) farm income;
(2) land values;
(3) rural communities;
(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.
(c) Membership.--
(1) Composition.--The Commission shall be composed of 10
members as follows:
(A) 3 members appointed by the Secretary.
[[Page 116 STAT. 217]]
(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 <<NOTE: Deadline.>> appointment of a member of the
Commission shall be made not later than 60 days after the date
of enactment of this Act.
(4) Term; vacancies.--
(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 <<NOTE: Deadline.>> 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 <<NOTE: Deadline.>> 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
[[Page 116 STAT. 218]]
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
[[Page 116 STAT. 219]]
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.''.
(b) <<NOTE: 7 USC 7994.>> Study.--
(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 <<NOTE: Deadline.>> 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. <<NOTE: 7 USC 7995.>> 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. <<NOTE: 7 USC 7996.>> 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.
(2) 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
[[Page 116 STAT. 220]]
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--
[[Page 116 STAT. 221]]
(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 <<NOTE: Deadline.>> 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'';
(2) in paragraph (1)--
(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.
[[Page 116 STAT. 222]]
SEC. 1614. <<NOTE: 7 USC 7997.>> 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. <<NOTE: 7 USC 7998.>> 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:
(A) Livestock.
(B) Loan commodities.
(C) Agricultural commodities other than loan
commodities.
SEC. 1616. <<NOTE: 7 USC 7999.>> 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. <<NOTE: 7 USC 8000.>> 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).
[[Page 116 STAT. 223]]
(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. <<NOTE: 7 USC 8001.>> 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. <<NOTE: 16 USC 3838.>> DEFINITIONS.
``In this subchapter:
``(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
[[Page 116 STAT. 224]]
``(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.
``(9) Producer.--
``(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);
``(B) reduces erosion;
``(C) improves soil fertility and tilth;
``(D) interrupts pest cycles; and
``(E) in applicable areas, reduces depletion of soil
moisture (or otherwise reduces the need for irrigation).
``(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
[[Page 116 STAT. 225]]
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. <<NOTE: 16 USC 3838a.>> 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.
``(b) Eligibility.--
``(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.
``(3) Exclusions.--
``(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
[[Page 116 STAT. 226]]
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.--
``(1) In general.--
``(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.
[[Page 116 STAT. 227]]
``(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;
``(K) contour farming;
``(L) strip cropping;
``(M) cover cropping;
``(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)--
[[Page 116 STAT. 228]]
``(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.
``(2) Modification.--
``(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,
[[Page 116 STAT. 229]]
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).
``(3) Termination.--
``(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.
``(4) Renewal.--
``(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
[[Page 116 STAT. 230]]
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. <<NOTE: 16 USC 3838b.>> 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. <<NOTE: 16 USC 3838c.>> 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.
``(b) Annual Payments.--
``(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
[[Page 116 STAT. 231]]
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
[[Page 116 STAT. 232]]
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--
[[Page 116 STAT. 233]]
``(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 <<NOTE: Deadline.>> 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.-- <<NOTE: Deadline. 16 USC 3838 note.>> 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
[[Page 116 STAT. 234]]
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.
``(4) Flexibility.--
``(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.
``(5) Funding.--
``(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
[[Page 116 STAT. 235]]
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. <<NOTE: 16 USC 3844.>> 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.
``(2) Exceptions.--
[[Page 116 STAT. 236]]
``(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--
(1) in subsection (a)--
(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:
[[Page 116 STAT. 237]]
``(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
(2) in subsection (d)--
(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. <<NOTE: 16 USC 3801 note.>> 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 <<NOTE: Deadline.>> 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:
[[Page 116 STAT. 238]]
``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. <<NOTE: 16 USC 3831.>> 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;
``(B) the land is a--
``(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
[[Page 116 STAT. 239]]
``(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.
``(2) Certain land.--
``(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.
[[Page 116 STAT. 240]]
``(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.--
``(1) Program.--
``(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.
``(2) Eligible acreage.--
``(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.
[[Page 116 STAT. 241]]
``(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 <<NOTE: Deadline.>> 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) Wetland.--
``(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
[[Page 116 STAT. 242]]
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 <<NOTE: 16 USC 3832.>> 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,
[[Page 116 STAT. 243]]
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
[[Page 116 STAT. 244]]
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
[[Page 116 STAT. 245]]
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)--
``(1) shall set forth--
``(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.
``(c) Foreclosure.--
``(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. <<NOTE: 16 USC 3833.>> 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. <<NOTE: 16 USC 3834.>> 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
[[Page 116 STAT. 246]]
``(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.
[[Page 116 STAT. 247]]
``(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.
``(3) Cash payments.--
``(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
[[Page 116 STAT. 248]]
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.
``(2) Regulations.--
``(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.
[[Page 116 STAT. 249]]
``SEC. 1235. <<NOTE: 16 USC 3835.>> 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.
``(c) Modifications.--
``(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.
[[Page 116 STAT. 250]]
``(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.
``(d) Termination.--
``(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.--
``(1) Early termination.--
``(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.
[[Page 116 STAT. 251]]
``(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. <<NOTE: 16 USC 3835a.>> 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.
``(2) Terms.--
``(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).''.
[[Page 116 STAT. 252]]
(b) Study <<NOTE: 16 USC 3831 note.>> 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).
[[Page 116 STAT. 253]]
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. <<NOTE: 16 USC 3839aa.>> 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. <<NOTE: 16 USC 3839aa-1.>> DEFINITIONS.
``In this chapter:
``(1) Beginning farmer or rancher.--The term `beginning
farmer or rancher' has the meaning provided under section 343(a)
of the Consolidated Farm and Rural Development Act (7 U.S.C.
1999(a)).
``(2) Eligible land.--
``(A) In general.--The term `eligible land' means
land on which agricultural commodities or livestock are
produced.
[[Page 116 STAT. 254]]
``(B) Inclusions.--The term `eligible land'
includes--
``(i) cropland;
``(ii) grassland;
``(iii) rangeland;
``(iv) pasture land;
``(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. <<NOTE: 16 USC 3839aa-2.>> ESTABLISHMENT AND
ADMINISTRATION OF ENVIRONMENTAL QUALITY INCENTIVES PROGRAM.
``(a) Establishment.--
``(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.
``(b) Practices and Term.--
``(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--
[[Page 116 STAT. 255]]
``(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.
``(2) Exceptions.--
``(A) Limited resource and beginning farmers.--The
Secretary may increase the amount provided to a producer
under paragraph (1) to not more than 90 percent if the
producer is a limited resource or beginning farmer or
rancher, as determined by the Secretary.
``(B) Cost-share assistance from other sources.--
Except as provided in paragraph (3), any cost-share
payments received by a producer from a State or private
organization or person for the implementation of 1 or
more practices on eligible land of the producer shall be
in addition to the payments provided to the producer
under paragraph (1).
``(3) Other payments.--A producer shall not be eligible for
cost-share payments for practices on eligible land under the
program if the producer receives cost-share payments or other
benefits for the same practice on the same land under chapter 1
and the program.
``(e) Incentive Payments.--
``(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.
[[Page 116 STAT. 256]]
``(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. <<NOTE: 16 USC 3839aa-3.>> 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. <<NOTE: 16 USC 3839aa-4.>> 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. <<NOTE: 16 USC 3839aa-5.>> 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
[[Page 116 STAT. 257]]
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. <<NOTE: 16 USC 3839aa-6.>> DUTIES OF THE SECRETARY.
``To the extent appropriate, the Secretary shall assist a producer
in achieving the conservation and environmental goals of 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. <<NOTE: 16 USC 3839aa-7.>> 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. <<NOTE: 16 USC 3839aa-8.>> 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. <<NOTE: 16 USC 3839aa-9.>> 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
[[Page 116 STAT. 258]]
eligible water conservation activities with respect to the agricultural
operations of producers, to--
``(1) improve irrigation systems;
``(2) enhance irrigation efficiencies;
``(3) convert to--
``(A) the production of less water-intensive
agricultural commodities; or
``(B) dryland farming;
``(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. <<NOTE: 16 USC 3838n.>> 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;
[[Page 116 STAT. 259]]
``(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
``(2) land that--
``(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. <<NOTE: 16 USC 3838o.>> 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.
[[Page 116 STAT. 260]]
``(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--
``(1) permit--
``(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);
``(2) prohibit--
``(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--
``(A) grazing operations;
``(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).
[[Page 116 STAT. 261]]
``(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. <<NOTE: 16 USC 3838p.>> 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).
``(b) Payments.--
``(1) Easement payments.--
``(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
[[Page 116 STAT. 262]]
provision of law, in such manner as the Secretary determines is fair and
reasonable in light of all the circumstances.
``SEC. 1238Q. <<NOTE: 16 USC 3838q.>> 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.
``(d) Reassignment.--
``(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
``(B) the Secretary.
``(2) Notification of secretary.--
``(A) In general.--If <<NOTE: Deadline.>> 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.''.
[[Page 116 STAT. 263]]
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.
``(B) Funding.--
``(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.''.
[[Page 116 STAT. 264]]
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. <<NOTE: 16 USC 3839bb.>> 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--
[[Page 116 STAT. 265]]
``(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.
``(2) Program elements.--
``(A) Funding.--If funding is provided to carry out
this section, it shall be provided through a specific
line-item in the annual appropriations for the Natural
Resources Conservation Service.
``(B) Technical assistance and education.--Personnel
of the Department trained in pasture and range
management shall be made available under the program to
deliver and coordinate technical assistance and
education to owners and managers of private grazing
land, at the request of the owners and managers.
``(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.
``(3) Procedure.--
``(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--
[[Page 116 STAT. 266]]
``(i) is reasonable;
``(ii) will promote sound grazing practices;
and
``(iii) contains provisions similar to the
provisions contained in the beef promotion and
research order issued under section 4 of the Beef
Research and Information Act (7 U.S.C. 2903) in
effect on 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. <<NOTE: 16 USC 3839bb-1.>> WILDLIFE HABITAT INCENTIVE
PROGRAM.
``(a) In General.--The <<NOTE: Establishment.>> 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;
``(D) fish habitat; and
``(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.
[[Page 116 STAT. 267]]
``SEC. 1240O. <<NOTE: 16 USC 3839bb-2.>> 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. <<NOTE: 16 USC 3839bb-3.>> 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. <<NOTE: 16 USC 3838h.>> DEFINITIONS.
``In this subchapter:
``(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;
[[Page 116 STAT. 268]]
``(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.
``(2) Eligible land.--
``(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--
``(i) cropland;
``(ii) rangeland;
``(iii) grassland;
``(iv) pasture land; and
``(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. <<NOTE: 16 USC 3838i.>> 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.
``(c) Cost Sharing.--
``(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
[[Page 116 STAT. 269]]
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. <<NOTE: 16 USC 3838j.>> 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.--
(1) In general.--
(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
(ii) in subsection (b)--
(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 <<NOTE: 16 USC 3830 note.>> 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:
[[Page 116 STAT. 270]]
``Subtitle H--Resource Conservation and Development Program
``SEC. 1528. <<NOTE: 16 USC 3451.>> DEFINITIONS.
``In this subtitle:
``(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
[[Page 116 STAT. 271]]
``(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--
``(A) any State;
``(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
[[Page 116 STAT. 272]]
``(D) providing services of an agency of the
Department of Agriculture to assist councils in
developing and carrying out area plans.
``SEC. 1529. <<NOTE: 16 USC 3452.>> RESOURCE CONSERVATION AND
DEVELOPMENT PROGRAM.
``The <<NOTE: Establishment.>> 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. <<NOTE: 16 USC 3453.>> 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. <<NOTE: 16 USC 3454.>> 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. <<NOTE: 16 USC 3455.>> 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
[[Page 116 STAT. 273]]
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.
``(b) Loans.--
``(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. <<NOTE: 16 USC 3456.>> 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.
``(b) Composition.--
``(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. <<NOTE: 16 USC 3457.>> 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 <<NOTE: Deadline.>> 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.
[[Page 116 STAT. 274]]
``SEC. 1535. <<NOTE: 16 USC 3458.>> 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. <<NOTE: 16 USC 3459.>> 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. <<NOTE: 16 USC 3460.>> 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:
``(h) Funding.--
``(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. <<NOTE: 16 USC 5805.>> 5801 et seq.) is amended--
(1) in subsection (c)--
(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.--
[[Page 116 STAT. 275]]
``(A) In general.--The Secretary may authorize the
Foundation to use, license, or transfer symbols,
slogans, and logos of the Foundation.
``(B) Income.--
``(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. <<NOTE: 43 USC 2211 note.>> 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. <<NOTE: 16 USC 3801 note.>> DEFINITIONS.
In this subtitle:
(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. <<NOTE: 16 USC 3801 note.>> 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.--
[[Page 116 STAT. 276]]
(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 <<NOTE: Deadline.>> 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--
(A) are voluntary;
(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.
[[Page 116 STAT. 277]]
SEC. 2603. <<NOTE: 16 USC 3801 note.>> 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--
(A) the plan;
(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. <<NOTE: 16 USC 3801 note.>> FUNDING REQUIREMENTS.
(a) Cost Sharing.--
(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.
[[Page 116 STAT. 278]]
(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. <<NOTE: 16 USC 3841.>> 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
[[Page 116 STAT. 279]]
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. <<NOTE: 16 USC 3842.>> DELIVERY OF TECHNICAL ASSISTANCE.
``(a) In General.--The Secretary shall provide technical assistance
under this title to a producer eligible for that assistance--
``(1) directly; or
``(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 <<NOTE: Deadline.>> 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.
``(3) Interim 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. <<NOTE: 16 USC 3801 note.>> REGULATIONS.
(a) In General.--Except <<NOTE: Deadline.>> 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.
[[Page 116 STAT. 280]]
(b) Applicable Authority.--The promulgation of regulations under
subsection (a) and administration of this title--
(1) shall--
(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
(2) may--
(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.--
[[Page 116 STAT. 281]]
``(1) Improvements.--Not <<NOTE: Deadline.>> 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.
``(3) Consultation.--
``(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 <<NOTE: Deadline.>> 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 <<NOTE: Deadline.>> 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'';
(3) in subsection (b)--
(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'';
[[Page 116 STAT. 282]]
(4) in subsection (c)--
(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
(5) in subsection (d)--
(A) by striking ``Foreign currencies'' and inserting
``Proceeds'';
(B) in paragraph (2)--
(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
(C) in paragraph (3)--
(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--
(1) in subsection (a)--
(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 <<NOTE: Deadline.>> 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:
``(e) Timely Approval.--
[[Page 116 STAT. 283]]
``(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 <<NOTE: Deadline.>> 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--
(1) in subsection (e)--
(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:
``(l) Sale Procedure.--
``(1) In general.--Subsections (b) and (h) shall apply to
sales of commodities in recipient countries to generate proceeds
to carry out projects under--
``(A) titles I and II;
``(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:
[[Page 116 STAT. 284]]
``(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.'';
(2) in subsection (a)--
(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 <<NOTE: Deadline.>> 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
[[Page 116 STAT. 285]]
(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
(5) in subsection (d)--
(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
[[Page 116 STAT. 286]]
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;
``(vi) farm credit;
``(vii) marketing;
``(viii) inputs; and
``(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--
[[Page 116 STAT. 287]]
``(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
[[Page 116 STAT. 288]]
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. <<NOTE: 7 USC 5607.>> 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.''.
[[Page 116 STAT. 289]]
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--
[[Page 116 STAT. 290]]
``(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
[[Page 116 STAT. 291]]
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--
[[Page 116 STAT. 292]]
``(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) <<NOTE: 7 USC 1736.>> 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:
[[Page 116 STAT. 293]]
``(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 <<NOTE: President.>> 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 <<NOTE: Deadline.>> 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.''.
[[Page 116 STAT. 294]]
(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:
``(n) Program Management.--
``(1) In general.--The <<NOTE: President.>> 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.
``(2) Requirements.--
``(A) In general.--Not <<NOTE: Deadline.>> 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,
[[Page 116 STAT. 295]]
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 <<NOTE: Deadline.>> 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. <<NOTE: 7 USC 1736o-1.>> 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;
[[Page 116 STAT. 296]]
(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 <<NOTE: 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.
[[Page 116 STAT. 297]]
(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.
(f) Procedures.--
(1) In <<NOTE: President.>> 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
[[Page 116 STAT. 298]]
(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 <<NOTE: President.>> 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--
(1) to--
(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.
(l) Funding.--
(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.
[[Page 116 STAT. 299]]
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;
(2) in clause (ii)--
(A) by striking ``Foreign currencies'' and inserting
``Proceeds''; and
(B) by striking ``foreign currency''; and
(3) in clause (iv)--
(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 <<NOTE: Federal Register,
publication. Deadline.>> 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 <<NOTE: Deadline.>> 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:
``(11) Requirements.--
``(A) In <<NOTE: Deadline.>> 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;
[[Page 116 STAT. 300]]
``(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 <<NOTE: Deadline.>> 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. <<NOTE: 7 USC 5679.>> 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;
``(B) food safety;
``(C) disease; or
``(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--
``(1) this section;
``(2) the emerging markets program under section 1542; or
``(3) the Cochran Fellowship Program under section 1543.
[[Page 116 STAT. 301]]
``(d) Funding.--There is authorized to be appropriated $6,000,000
for each of fiscal years 2002 through 2007.''.
SEC. 3205. <<NOTE: 7 USC 5680.>> 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
(2) trade impact.
(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. <<NOTE: 7 USC 5603a.>> GLOBAL MARKET STRATEGY.
(a) In <<NOTE: Deadline.>> 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 <<NOTE: Deadline.>> 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.
[[Page 116 STAT. 302]]
SEC. 3208. <<NOTE: 7 USC 5693 note.>> STUDY ON FEE FOR SERVICES.
(a) In General.--Not <<NOTE: Deadline.>> 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
[[Page 116 STAT. 303]]
$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--
[[Page 116 STAT. 304]]
(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--
[[Page 116 STAT. 305]]
(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 <<NOTE: Food Stamp Reauthorization Act of
2002.>> PROGRAMS
SEC. 4001. SHORT <<NOTE: 7 USC 2011 note.>> 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
[[Page 116 STAT. 306]]
(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:
``(1) Standard deduction.--
``(A) In general.--
``(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--
[[Page 116 STAT. 307]]
``(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.
``(B) Guam.--
``(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--
(1) in subsection (e)--
[[Page 116 STAT. 308]]
(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--
``(i) cash;
``(ii) licensed vehicles;
``(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.''.
[[Page 116 STAT. 309]]
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. <<NOTE: 7 USC 2016 note.>> 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 <<NOTE: Deadline.>> 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
[[Page 116 STAT. 310]]
(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.--
``(1) In general.--
``(A) Applicability.--
``(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).
[[Page 116 STAT. 311]]
``(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.
``(2) Pilot projects.--
``(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
[[Page 116 STAT. 312]]
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--
``(A) an'';
(B) in the first sentence, by striking ``others, or
(2) a group'' and inserting the following: ``others; or
``(B) a group'';
(C) in the second sentence, by striking ``Spouses''
and inserting the following:
[[Page 116 STAT. 313]]
``(2) Spouses'';
(D) in the third sentence, by striking
``Notwithstanding'' and inserting the following:
``(3) Notwithstanding'';
(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:
``(4) In no event'';
(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:
``(A) Residents''; and
(H) in paragraph (5) (as designated by subparagraph
(G))--
(i) by striking ``Act, or are individuals''
and inserting the following: ``Act.
``(B) Individuals'';
(ii) by striking ``such section, temporary''
and inserting the following: ``that section.
``(C) Temporary'';
(iii) by striking ``children, residents'' and
inserting the following: ``children.
``(D) Residents'';
(iv) by striking ``coupons, and narcotics''
and inserting the following: ``coupons.
``(E) Narcotics''; and
(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.''.
[[Page 116 STAT. 314]]
(b) Effective <<NOTE: 7 USC 2019 note.>> 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 <<NOTE: 7 USC 2020 note.>> 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.--
[[Page 116 STAT. 315]]
``(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;
[[Page 116 STAT. 316]]
``(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 <<NOTE: 7 USC 2023 note.>> 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.--
``(1) In general.--
``(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
[[Page 116 STAT. 317]]
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
``(II) 6 percent; and
``(iii) 10 percent.
``(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
[[Page 116 STAT. 318]]
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
[[Page 116 STAT. 319]]
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 <<NOTE: Regulations.>> 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).'';
(3) in paragraph (5)--
(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)'';
(4) in paragraph (6)--
(A) by striking ``(6) At'' and inserting the
following:
``(6) National performance measure for payment error
rates.--
``(A) Announcement.--At'';
(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)'';
[[Page 116 STAT. 320]]
(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.'';
(5) in paragraph (7)--
(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
(6) in paragraph (8)--
(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.
[[Page 116 STAT. 321]]
(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 <<NOTE: 7 USC 2022 note.>> 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 <<NOTE: 7 USC 2025 note.>> 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.--
[[Page 116 STAT. 322]]
``(A) Guidance.-- <<NOTE: Deadline.>> 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
[[Page 116 STAT. 323]]
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 <<NOTE: 7 USC 2025 note.>> 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 <<NOTE: 7 USC 2025 note.>> Funds.--Notwithstanding any
other provision of law, funds provided under section 16(h)(1)(A) of the
Food Stamp
[[Page 116 STAT. 324]]
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 <<NOTE: 7 USC 2015 note.>> 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 <<NOTE: 7 USC 2026 note.>> 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:
[[Page 116 STAT. 325]]
``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
``(B) American Samoa.
``(2) Block grants.--
``(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
[[Page 116 STAT. 326]]
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.
(c) Applicability.-- <<NOTE: 7 USC 2028 note.>>
(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 <<NOTE: 7 USC 2028 note.>> 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--
(1) in subsection (a)--
(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 <<NOTE: Contracts.>> 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
[[Page 116 STAT. 327]]
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;
``(B) rural poverty;
``(C) welfare dependency;
``(D) hunger;
``(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 <<NOTE: Deadline.>> 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 <<NOTE: 7 USC 2034 note.>> Date.--The amendments made
by this section take effect on the date of enactment of this Act.
[[Page 116 STAT. 328]]
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 <<NOTE: 7 USC 2036 note.>> 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.
``(2) Amount of grants.--
``(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.'';
[[Page 116 STAT. 329]]
(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--
``(A) this Act;
``(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 <<NOTE: 7 USC 612c note.>> 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 <<NOTE: 7 USC 612c note.>> 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
[[Page 116 STAT. 330]]
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 <<NOTE: 7 USC 612c note.>> 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 <<NOTE: 42 USC 1755 note.>> 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,
[[Page 116 STAT. 331]]
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 <<NOTE: 42 USC 1758 note.>> 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).''.
[[Page 116 STAT. 332]]
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 <<NOTE: Deadline.>> 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 <<NOTE: 42 USC 1769 note.>> 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--
``(I) for housing'';
(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 <<NOTE: 42 USC 1786 note.>> 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:
``(9) Funding.--
``(A) In general.--
``(i) Authorization of appropriations.--
There''; and
(2) in subparagraph (A), by adding at the end the following:
``(ii) Mandatory funding.--
Not <<NOTE: Deadline.>> later than 30 days after
the date of enactment of the Food Stamp
[[Page 116 STAT. 333]]
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 <<NOTE: 42 USC 1786 note.>> 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
``(ii) in the case''.
(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 <<NOTE: Applicability.>> 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 <<NOTE: 7 USC 2014 note.>> 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:
[[Page 116 STAT. 334]]
``(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 <<NOTE: 8 USC 1612 note.>> date.--The
amendment made by paragraph (1) takes effect on April 1, 2003.
SEC. 4402. <<NOTE: 7 USC 3007.>> 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. <<NOTE: 7 USC 3171 note.>> 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.
(b) Purpose.--
(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.
(c) Selection of States.--
(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;
[[Page 116 STAT. 335]]
(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. <<NOTE: Congressional Hunger Fellows Act of 2002. 2 USC
1161.>> 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'').
[[Page 116 STAT. 336]]
(c) Board of Trustees.--
(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.
(C) Vacancy.--
(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.
(E) Compensation.--
(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.
(3) Duties.--
(A) Bylaws.--
(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
[[Page 116 STAT. 337]]
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).
(3) Fellowships.--
(A) In general.--The program shall establish and
carry out the Bill Emerson Hunger Fellowship and the
Mickey Leland Hunger Fellowship.
(B) Curriculum.--
(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.
[[Page 116 STAT. 338]]
(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.
(iii) Amount of award.--
(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''.
[[Page 116 STAT. 339]]
(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.
(e) Trust Fund.--
(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).
[[Page 116 STAT. 340]]
(G) Additional approved uses.--For such other
purposes that the Board determines appropriate to carry
out the program.
(4) Audit by gao.--
(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.--
(1) Executive director.--
(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.
(2) Staff.--
(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
[[Page 116 STAT. 341]]
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 <<NOTE: Deadline.>> 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. <<NOTE: 2 USC 1161 note.>> 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
[[Page 116 STAT. 342]]
``(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--
(1) in subsection (b)--
(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. <<NOTE: 7 USC 1936.>> 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
[[Page 116 STAT. 343]]
criteria and a commercial lending institution agrees to serve as escrow
agent.
``(b) Date of <<NOTE: Deadline.>> 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--
(1) in paragraph (1)--
(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:
``(4) Waivers.--
``(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. <<NOTE: 7 USC 1949 note.>> SUSPENSION OF LIMITATION ON
PERIOD FOR WHICH BORROWERS ARE ELIGIBLE FOR GUARANTEED
ASSISTANCE.
During the period <<NOTE: Effective date. Termination
date.>> 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.
[[Page 116 STAT. 344]]
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. <<NOTE: 7 USC 1922 note.>> 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.
(b) Periods Covered.--
(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''.
[[Page 116 STAT. 345]]
(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 <<NOTE: 7 USC 1981 note.>> 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--
``(1) the''; and
(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
``(3) the''.
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--
[[Page 116 STAT. 346]]
(1) in paragraph (1)--
(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 <<NOTE: Deadline.>> 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--
[[Page 116 STAT. 347]]
``(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--
(1) in subsection (a)--
(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:
``(D) Reamortization.--
``(i) In general.--The Secretary may modify
the amortization of a recapture payment referred
to in subparagraph (A) of this paragraph on which
a payment has become delinquent 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.
``(ii) Limitations.--
[[Page 116 STAT. 348]]
``(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:
``(f) Waivers.--
``(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
[[Page 116 STAT. 349]]
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. <<NOTE: 7 USC 2008k.>> 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. <<NOTE: 7 USC 2008l.>> 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.
``(b) Approvals.--
``(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).
[[Page 116 STAT. 350]]
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--
``(A) a farm supply; and
``(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--
(A) in subsection (a)--
(i) in paragraph (1)--
(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--
[[Page 116 STAT. 351]]
(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 <<NOTE: 12 USC 2020 note.>> 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,''.
[[Page 116 STAT. 352]]
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.--
``(A) Authority.--
``(i) In general.--The'';
(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
[[Page 116 STAT. 353]]
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.--
[[Page 116 STAT. 354]]
``(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.''.
[[Page 116 STAT. 355]]
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. <<NOTE: 7 USC 1926.>> 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.
``(B) Federal share.--
``(i) In <<NOTE: Regulation.>> 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
[[Page 116 STAT. 356]]
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'';
(2) in subsection (a)--
(A) in paragraph (1), by inserting ``, or when such
a decline is imminent'' before the semicolon at the end;
and
(B) in paragraph (2)--
(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'';
(6) in subsection (h)--
(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
[[Page 116 STAT. 357]]
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:
``(i) Funding.--
``(1) Reservation.--
``(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:
[[Page 116 STAT. 358]]
``SEC. 306E. <<NOTE: 7 USC 1926e.>> 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.
``(b) Grants.--
``(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 <<NOTE: 7 USC 1926e note.>> 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:
``(1) Grants.--
``(A) In general.--The Secretary''; and
(2) by adding at the end the following:
[[Page 116 STAT. 359]]
``(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.--
[[Page 116 STAT. 360]]
``(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;
[[Page 116 STAT. 361]]
``(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.--
``(A) Principal amount.--
``(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. <<NOTE: 7 USC 1936a.>> 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
[[Page 116 STAT. 362]]
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
``(B) ensure that--
``(i) the form can be completed manually or
electronically, at the option of the lender;
``(ii) the form minimizes the documentation
required to accompany the form;
``(iii) the cost of completing and processing
the form is minimal; and
``(iv) the form can be completed and processed
in an expeditious manner.''.
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:
[[Page 116 STAT. 363]]
``(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) <<NOTE: 7 USC 2009 note.>> 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:
[[Page 116 STAT. 364]]
``SEC. 378. <<NOTE: 7 USC 2008m.>> 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).
``(b) Partnership.--
``(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.
``(3) Governing <<NOTE: Establishment.>> panel.--
``(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.--
[[Page 116 STAT. 365]]
``(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.
[[Page 116 STAT. 366]]
``(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.
[[Page 116 STAT. 367]]
``(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.
``(g) Funding.--
``(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.
``(2) Federal agencies.--
``(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).
[[Page 116 STAT. 368]]
``(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. <<NOTE: 7 USC 2008n.>> 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 <<NOTE: Grants.>> 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.
``(3) Non-federal share.--
``(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
[[Page 116 STAT. 369]]
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.
``(c) Telework Grants.--
``(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.
``(3) Non-federal share.--
``(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.
[[Page 116 STAT. 370]]
``(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 <<NOTE: Deadline.>> 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. <<NOTE: 7 USC 2008o.>> 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--
``(A) housing animals;
``(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.
[[Page 116 STAT. 371]]
``(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.
``(c) Grants.--
``(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. <<NOTE: 7 USC 2008p.>> 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
[[Page 116 STAT. 372]]
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. <<NOTE: 7 USC 2008q.>> 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--
(1) in subsection (b)--
(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)''.
[[Page 116 STAT. 373]]
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:
``(1) In general.--
``(A) Temporary <<NOTE: Effective date. Termination
date.>> 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 <<NOTE: Effective date.>> 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.
``(c) Certifications.--
``(1) In general.--In the case of any project for which all
or any portion of the basic Federal share of the costs of the
project is proposed to be paid under this section, no Federal
contribution shall be made until the Federal official
administering the Federal law that authorizes the Federal grant
program certifies that the project--
[[Page 116 STAT. 374]]
``(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. <<NOTE: 7 USC 2008r.>> 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,''.
[[Page 116 STAT. 375]]
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. <<NOTE: 7 USC 2009bb.>> DEFINITIONS.
``In this subtitle:
``(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. <<NOTE: 7 USC 2009bb-1.>> NORTHERN GREAT PLAINS REGIONAL
AUTHORITY.
``(a) Establishment.--
``(1) In general.--There is established the Northern Great
Plains Regional Authority.
``(2) Composition.--The Authority shall be composed of--
``(A) a Federal member, to be appointed by the
President, by and with the advice and consent of the
Senate;
``(B) the Governor (or a designee of the Governor)
of each State in the region that elects to participate
in the Authority; and
``(C) a member of an Indian tribe, who shall be a
chairperson of an Indian tribe in the region or a
designee of such a chairperson, to be appointed by the
President, by and with the advice and consent of the
Senate.
``(3) Cochairpersons.--The Authority shall be headed by--
``(A) the Federal member, who shall serve--
``(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--
[[Page 116 STAT. 376]]
``(i) as the tribal cochairperson; and
``(ii) as a liaison between the governments of
Indian tribes in the region and the Authority.
``(b) Alternate Members.--
``(1) Alternate <<NOTE: President.>> federal
cochairperson.--The President shall appoint an alternate Federal
cochairperson.
``(2) State alternates.--
``(A) In general.--The State member of a
participating State may have a single alternate, who
shall be--
``(i) a resident of that State; and
``(ii) appointed by the Governor of the State.
``(B) Quorum.--A State alternate member shall not be
counted toward the establishment of a quorum of the
members of the Authority in any case in which a quorum
of the State members is required to be present.
``(3) Alternate <<NOTE: President.>> tribal cochairperson.--
The President shall appoint an alternate tribal cochairperson,
by and with the advice and consent of the Senate.
``(4) Delegation of power.--No power or responsibility of
the Authority specified in paragraphs (2) and (3) of subsection
(c), and no voting right of any member of the Authority, shall
be delegated to any person who is not--
``(A) a member of the Authority; or
``(B) entitled to vote in Authority meetings.
``(c) Voting.--
``(1) In general.--A decision by the Authority shall require
a majority vote of the Authority (not including any member
representing a State that is delinquent under subsection
(g)(2)(D)) to be effective.
``(2) Quorum.--A quorum of State members shall be required
to be present for the Authority to make any policy decision,
including--
``(A) a modification or revision of an Authority
policy decision;
``(B) approval of a State or regional development
plan; and
``(C) any allocation of funds among the States.
``(3) Project and grant proposals.--The approval of project
and grant proposals shall be--
``(A) a responsibility of the Authority; and
``(B) conducted in accordance with section 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 <<NOTE: Deadline.>> 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,
[[Page 116 STAT. 377]]
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
[[Page 116 STAT. 378]]
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.
``(2) Non-federal share.--
``(A) In general.--The non-Federal share of the
administrative expenses of the Authority shall be paid
by non-Federal sources in the States that participate in
the Authority.
``(B) Share paid by each state.--The share of
administrative expenses of the Authority to be paid by
non-Federal sources in each State shall be determined by
the Authority.
``(C) No federal participation.--The Federal
cochairperson shall not participate or vote in any
decision under subparagraph (B).
``(D) Delinquent states.--If a State is delinquent
in payment of the State's share of administrative
expenses of the Authority under this subsection--
``(i) no assistance under this 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.
``(h) Compensation.--
``(1) Federal and tribal cochairpersons.--The Federal
cochairperson and the tribal cochairperson shall be compensated
by the Federal Government at the annual rate of basic pay
prescribed for level III of the Executive Schedule in subchapter
II of chapter 53 of title 5, United States Code.
``(2) Alternate federal and tribal cochairpersons.--The
alternate Federal cochairperson and the alternate tribal
cochairperson--
``(A) shall be compensated by the Federal Government
at the annual rate of basic pay prescribed for level V
of the Executive Schedule described in paragraph (1);
and
``(B) when not actively serving as an alternate,
shall perform such functions and duties as are delegated
by
[[Page 116 STAT. 379]]
the Federal cochairperson or the tribal cochairperson,
respectively.
``(3) State members and alternates.--
``(A) In general.--A State shall compensate each
member and alternate representing the State on the
Authority at the rate established by State law.
``(B) No additional compensation.--No State member
or alternate member shall receive any salary, or any
contribution to or supplementation of salary from any
source other than the State for services provided by the
member or alternate member to the Authority.
``(4) Detailed employees.--
``(A) In general.--No person detailed to serve the
Authority under subsection (e)(6) shall receive any
salary or any contribution to or supplementation of
salary for services provided to the Authority from--
``(i) any source other than the State, tribal,
local, or intergovernmental agency from which the
person was detailed; or
``(ii) the Authority.
``(B) Violation.--Any person that violates this
paragraph shall be fined not more than $5,000,
imprisoned not more than 1 year, or both.
``(C) Applicable law.--The Federal cochairperson,
the alternate Federal cochairperson, and any Federal
officer or employee detailed to duty on the Authority
under subsection (e)(5) shall not be subject to
subparagraph (A), but shall remain subject to sections
202 through 209 of title 18, United States Code.
``(5) Additional personnel.--
``(A) Compensation.--
``(i) In general.--The Authority may appoint
and fix the compensation of an executive director
and such other personnel as are necessary to
enable the Authority to carry out the duties of
the Authority.
``(ii) Exception.--Compensation under clause
(i) shall not exceed the maximum rate for the
Senior Executive Service under section 5382 of
title 5, United States Code, including any
applicable locality-based comparability payment
that may be authorized under section 5304(h)(2)(C)
of that title.
``(B) Executive director.--The executive director
shall be responsible for--
``(i) the carrying out of the administrative
duties of the Authority;
``(ii) direction of the Authority staff; and
``(iii) such other duties as the Authority may
assign.
``(C) No federal employee status.--No member,
alternate, officer, or employee of the Authority (except
the Federal cochairperson of the Authority, the
alternate and staff for the Federal cochairperson, and
any Federal employee detailed to the Authority under
subsection (e)(5)) shall be considered to be a Federal
employee for any purpose.
``(i) Conflicts of Interest.--
[[Page 116 STAT. 380]]
``(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. <<NOTE: 7 USC 2009bb-2.>> 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);
[[Page 116 STAT. 381]]
``(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.
``(b) Funding.--
``(1) In general.--Funds for grants under subsection (a) may
be provided--
``(A) entirely from appropriations to carry out this
section;
``(B) in combination with funds available under
another Federal grant program; or
``(C) from any other source.
``(2) Priority of funding.--To best build the foundations
for long-term economic development and to complement other
Federal, State, and tribal resources in the region, Federal
funds available under this 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. <<NOTE: 7 USC 2009bb-3.>> 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.
``(c) Certifications.--
[[Page 116 STAT. 382]]
``(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. <<NOTE: 7 USC 2009bb-4.>> 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--
``(1) that--
``(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
``(B) is--
``(i) organized and operated in a manner that
ensures broad-based community participation and an
effective opportunity for other nonprofit groups
to contribute to the development and
implementation of programs in the region;
``(ii) 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
[[Page 116 STAT. 383]]
``(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
[[Page 116 STAT. 384]]
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. <<NOTE: 7 USC 2009bb-5.>> DISTRESSED COUNTIES AND AREAS
AND NONDISTRESSED COUNTIES.
``(a) Designations.--Not <<NOTE: Deadline.>> 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).
``(2) Exceptions.--
``(A) In general.--The funding prohibition under
paragraph (1) shall not apply to grants to fund the
administrative expenses of local development districts
under section 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.
[[Page 116 STAT. 385]]
``(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. <<NOTE: 7 USC 2009bb-6.>> 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--
``(1) consult with--
``(A) local development districts; and
``(B) local units of government; and
``(2) take into consideration the goals, objectives,
priorities, and recommendations of the entities described in
paragraph (1).
``(d) Public Participation.--
``(1) In general.--The Authority and applicable State and
local development districts shall encourage and assist, to the
maximum extent practicable, public participation in the
development, revision, and implementation of all plans and
programs under this subtitle.
``(2) Regulations.--The Authority shall develop guidelines
for providing public participation described in paragraph (1),
including public hearings.
``SEC. 383H. <<NOTE: 7 USC 2009bb-7.>> 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;
[[Page 116 STAT. 386]]
``(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. <<NOTE: 7 USC 2009bb-8.>> 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. <<NOTE: 7 USC 2009bb-9.>> 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. <<NOTE: 7 USC 2009bb-10.>> 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.
[[Page 116 STAT. 387]]
``(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. <<NOTE: Deadline. 7 USC 2009bb-11.>> 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. <<NOTE: 7 USC 2009bb-12.>> 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
``(2) the ratio that--
``(A) the population of the State (as determined by
the Secretary of Commerce based on the most recent
decennial census for which data are available); bears to
``(B) the population of the region (as so
determined).
``SEC. 383N. <<NOTE: 7 USC 2009bb-13.>> 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:
[[Page 116 STAT. 388]]
``Subtitle H--Rural Business Investment Program
``SEC. 384A. <<NOTE: 7 USC 2009cc.>> DEFINITIONS.
``In this subtitle:
``(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
[[Page 116 STAT. 389]]
under section 384D(e), that requires the rural business
investment company to make investments in smaller enterprises in
rural areas.
``(11) Private capital.--
``(A) In general.--The term `private capital' means
the total of--
``(i)(I) the paid-in capital and paid-in
surplus of a corporate rural business investment
company;
``(II) the contributed capital of the partners
of a partnership rural business investment
company; or
``(III) the equity investment of the members
of a limited liability company rural business
investment company; and
``(ii) unfunded binding commitments from
investors that meet criteria established by the
Secretary to contribute capital to the rural
business investment company, except that--
``(I) unfunded commitments may be
counted as private capital for purposes
of approval by the Secretary of any
request for leverage; but
``(II) leverage shall not be funded
based on the commitments.
``(B) Exclusions.--The term `private capital' does
not include--
``(i) any funds borrowed by a rural business
investment company from any source;
``(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
[[Page 116 STAT. 390]]
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--
``(A) has--
``(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
[[Page 116 STAT. 391]]
Business Administration for the industry in which the
rural business concern is primarily engaged.
``SEC. 384B. <<NOTE: 7 USC 2009cc-1.>> 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. <<NOTE: 7 USC 2009cc-2.>> 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. <<NOTE: 7 USC 2009cc-3.>> 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--
[[Page 116 STAT. 392]]
``(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 <<NOTE: Deadline. Reports.>> 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.
``(e) Approval; License.--
``(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--
[[Page 116 STAT. 393]]
``(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. <<NOTE: 7 USC 2009cc-4.>> 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 <<NOTE: Applicability.>> 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
``(B) $105,000,000; and
``(2) provide for the use of discounted debentures.
``SEC. 384F. <<NOTE: 7 USC 2009cc-5.>> 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
[[Page 116 STAT. 394]]
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.
``(b) Guarantee.--
``(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 <<NOTE: Applicability.>> 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.
[[Page 116 STAT. 395]]
``(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. <<NOTE: 7 USC 2009cc-6.>> 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).
``(c) License.--
``(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. <<NOTE: 7 USC 2009cc-7.>> 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.
``(e) Grant Amount.--
``(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
``(B) $1,000,000.
``(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.
[[Page 116 STAT. 396]]
``SEC. 384I. <<NOTE: 7 USC 2009cc-8.>> 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--
``(A) $5,000,000; or
``(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
[[Page 116 STAT. 397]]
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. <<NOTE: 7 USC 2009cc-9.>> 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.).
[[Page 116 STAT. 398]]
``SEC. 384K. <<NOTE: 7 USC 2009cc-10.>> 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.
``(b) Public Reports.--
``(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
[[Page 116 STAT. 399]]
``(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. <<NOTE: 7 USC 2009cc-11.>> 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.
``(c) Costs.--
``(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. <<NOTE: 7 USC 2009cc-12.>> INJUNCTIONS AND OTHER ORDERS.
``(a) In General.--
``(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.
``(b) Jurisdiction.--
[[Page 116 STAT. 400]]
``(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. <<NOTE: 7 USC 2009cc-13.>> 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. <<NOTE: 7 USC 2009cc-14.>> 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.
[[Page 116 STAT. 401]]
``(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. <<NOTE: 7 USC 2009cc-15.>> 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. <<NOTE: 7 USC 2009cc-16.>> 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. <<NOTE: 7 USC 2009cc-17.>> REGULATIONS.
``The Secretary may promulgate such regulations as the Secretary
considers necessary to carry out this subtitle.
[[Page 116 STAT. 402]]
``SEC. 384S. <<NOTE: 7 USC 2009cc-18.>> 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. <<NOTE: 7 USC 2009dd.>> 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. <<NOTE: 7 USC 2009dd-1.>> DEFINITIONS.
``In this subtitle:
``(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.
``(3) Eligible area.--
``(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.
``(B) Inclusion.--
``(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.
[[Page 116 STAT. 403]]
``(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. <<NOTE: 7 USC 2009dd-2.>> 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.
``(2) Composition.--
``(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--
[[Page 116 STAT. 404]]
``(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).
``(C) Ex-officio members.--
``(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).
``(E) Appeals.--
``(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 <<NOTE: Reports.>> 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.
[[Page 116 STAT. 405]]
``SEC. 385D. <<NOTE: 7 USC 2009dd-3.>> NATIONAL BOARD ON RURAL AMERICA.
``(a) Establishment.--
``(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.
``(b) Composition.--
``(1) In general.--
``(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.
``(3) Term of office.--
``(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).
``(5) Ex-officio members.--
``(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.
[[Page 116 STAT. 406]]
``(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.
``(9) Meetings.--
``(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.
[[Page 116 STAT. 407]]
``(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
``(C) the Secretary.
``SEC. 385E. <<NOTE: 7 USC 2009dd-4.>> 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. <<NOTE: 7 USC 2009dd-5.>> 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.
[[Page 116 STAT. 408]]
``(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.
``(e) Cost Sharing.--
``(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.
``(2) Form.--
``(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. <<NOTE: 7 USC 2009dd-6.>> 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.
``(b) Eligibility.--
``(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
[[Page 116 STAT. 409]]
``(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.
``(e) Uses.--
``(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--
[[Page 116 STAT. 410]]
``(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--
``(A) $100,000; or
``(B) 5 percent of the amount of an innovation grant
provided.
``(f) Amount.--
``(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.
``(g) Cost Sharing.--
``(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.
[[Page 116 STAT. 411]]
``(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. <<NOTE: 7 USC 2009dd-7.>> NATIONAL CONFERENCE ON RURAL
AMERICA.
``(a) In <<NOTE: President. Deadline.>> 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.
``(c) Composition.--
``(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 <<NOTE: President.>> 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.
``(d) Report.--
``(1) Report <<NOTE: Deadline.>> to president.--Not later
than 120 days after the termination of the Conference, the
Conference shall submit
[[Page 116 STAT. 412]]
to the President a report that contains the findings and
recommendations of the Conference, including findings and
recommendations to address needs related to--
``(A) telecommunications;
``(B) rural health issues;
``(C) transportation;
``(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 <<NOTE: Deadline.>> 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 <<NOTE: Deadline.>> 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).
(c) Limitations.--
(1) Appropriated amounts.--Funds made available under this
section shall be available to the Secretary to provide funds
[[Page 116 STAT. 413]]
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. <<NOTE: 7 USC 940c-1.>> 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.
``(b) Limitations.--
``(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--
[[Page 116 STAT. 414]]
``(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.
``(c) Fees.--
``(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).
``(d) Guarantees.--
``(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
[[Page 116 STAT. 415]]
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.''.
(b) Administration.-- <<NOTE: 7 USC 940c-1 note. Deadline.>>
(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. <<NOTE: 7 USC 940e.>> 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. <<NOTE: Loans. 7 USC 950bb.>> 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
[[Page 116 STAT. 416]]
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.
``(d) Eligible Entities.--
``(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--
[[Page 116 STAT. 417]]
``(i) the cost of borrowing to the Department
of the Treasury for obligations of comparable
maturity; or
``(ii) 4 percent; and
``(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 <<NOTE: Deadline.>> 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.
``(j) Funding.--
``(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.
``(2) Television funds.--
``(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--
[[Page 116 STAT. 418]]
``(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.''.
(b) <<NOTE: 7 USC 950bb note.>> Regulations.--
(1) In <<NOTE: Deadline.>> 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 <<NOTE: 7 USC 5901 note.>> 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
[[Page 116 STAT. 419]]
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.
(c) Use of <<NOTE: 7 USC 5901 note.>> Assets.--
(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, <<NOTE: 5
USC 5315.>> 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, <<NOTE: 31 USC 9101.>> 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. <<NOTE: 7 USC 5923.>> 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;
[[Page 116 STAT. 420]]
``(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.
``(c) Grants.--
``(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.
``(3) Non-federal share.--
[[Page 116 STAT. 421]]
``(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 <<NOTE: Deadline.>> 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. <<NOTE: 7 USC 2009ee.>> DEFINITIONS.
In this subtitle:
(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
[[Page 116 STAT. 422]]
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. <<NOTE: 7 USC 2009ee-1.>> 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 <<NOTE: Deadline.>> 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.
(2) Composition.--
(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.
[[Page 116 STAT. 423]]
(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.
(f) Awards.--
(1) In <<NOTE: Deadline.>> 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.
(g) Unexpended Funds.--
(1) In <<NOTE: Deadline.>> 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.
(2) Retention of funds.--
(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.
[[Page 116 STAT. 424]]
SEC. 6303. <<NOTE: Deadline. 7 USC 2009ee-2.>> 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. <<NOTE: 7 USC 2009ee-3.>> 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
[[Page 116 STAT. 425]]
``(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.
``(b) Grant Program.--
``(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.
``(2) Amount of grant.--
``(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 <<NOTE: Deadline.>> 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
[[Page 116 STAT. 426]]
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)''.
(b) <<NOTE: 7 USC 1621 note.>> Applicability.--
(1) In general.--Except <<NOTE: Effective date.>> as
provided in paragraph (2), the amendments made by subsection (a)
apply beginning on October 1, 2002.
(2) Funding.--Funds <<NOTE: Deadline.>> 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. <<NOTE: 7 USC 1621 note.>> 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 <<NOTE: Grants.>> 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--
[[Page 116 STAT. 427]]
(A) the entity--
(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 <<NOTE: Establishment.>> 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--
(A) $1,000,000; or
(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--
[[Page 116 STAT. 428]]
(i) the eligible entities to which grants were
made under subparagraph (A); and
(ii) not more than 10 additional eligible
entities.
(4) State limitation.--
(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)):
(1) Applied research.
(2) Consulting services.
(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.
(5) Legal services.
(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;
(B) market prices;
(C) farm income; and
(D) Federal outlays on commodity programs.
(h) Report to Congress.--
(1) In <<NOTE: Deadline.>> 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--
[[Page 116 STAT. 429]]
(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
[[Page 116 STAT. 430]]
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
``(II) December 31, 2006.
``(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'';
(B) in subsection (b)--
(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. <<NOTE: 7 USC 2655.>> 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.
(b) Use of Funds.--
(1) Scholarships.--
(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.
[[Page 116 STAT. 431]]
(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--
(1) in subsection (a)--
(A) by striking ``and'' after ``economics,''; and
(B) by inserting ``, and rural economic, community,
and business development'' before the period;
(2) in subsection (b)--
(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;
[[Page 116 STAT. 432]]
(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;
(3) in subsection (d)--
(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''
[[Page 116 STAT. 433]]
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''.
[[Page 116 STAT. 434]]
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''.
[[Page 116 STAT. 435]]
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''.
[[Page 116 STAT. 436]]
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
[[Page 116 STAT. 437]]
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.
``(6) D-Q University.
``(7) Dine College.
``(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 <<NOTE: 7 USC 301 note. Deadline.>> 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:
``(c) Carryover.--
``(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.--
[[Page 116 STAT. 438]]
``(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.--
``(1) In general.--There'';
(2) by striking the second sentence; and
(3) in the third sentence, by striking ``Beginning'' through
``6 per centum'' and inserting the following:
``(2) <<NOTE: Effective date.>> 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.--
``(1) In general.--There'';
(2) by striking the second sentence and inserting the
following:
``(2) <<NOTE: Effective date.>> 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:
``(5) Carryover.--
[[Page 116 STAT. 439]]
``(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;
``(C) farm income; or
``(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''.
[[Page 116 STAT. 440]]
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--
(1) in subsection (a)--
(A) in paragraph (3)--
(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.'';
(B) in paragraph (4)--
(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'';
(3) in subsection (d)--
(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:
[[Page 116 STAT. 441]]
``(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
(H) in paragraph (5)--
(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. <<NOTE: 7 USC 7629.>> 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
[[Page 116 STAT. 442]]
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.
[[Page 116 STAT. 443]]
``(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.
[[Page 116 STAT. 444]]
``(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
[[Page 116 STAT. 445]]
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
[[Page 116 STAT. 446]]
``(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
[[Page 116 STAT. 447]]
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). <<NOTE: Deadline.>> 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.''.
[[Page 116 STAT. 448]]
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) <<NOTE: Effective date.>> 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) <<NOTE: Effective date.>> 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.''.
[[Page 116 STAT. 449]]
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. <<NOTE: 7 USC 3315a.>> 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--
(1) in subsection (a)--
(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) <<NOTE: Effective date.>> 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. <<NOTE: Establishment. 7 USC 7657.>> 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').
``(b) Members.--
``(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--
[[Page 116 STAT. 450]]
``(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.
``(4) Other requirements.--
``(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.
``(d) Compensation.--
``(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
[[Page 116 STAT. 451]]
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) <<NOTE: Deadline.>> 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;
[[Page 116 STAT. 452]]
(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. <<NOTE: 7 USC 3351.>> 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
[[Page 116 STAT. 453]]
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. <<NOTE: Grants. 7 USC 3352.>> 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.
[[Page 116 STAT. 454]]
``(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, <<NOTE: 7 USC 6711.>> 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.--'';
[[Page 116 STAT. 455]]
(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. <<NOTE: 7 USC 3319f note.>> SUBTITLE DEFINITIONS.
In this subtitle:
[[Page 116 STAT. 456]]
(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. <<NOTE: 7 USC 3310a.>> 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. <<NOTE: 7 USC 3319b note.>> 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. <<NOTE: 7 USC 3319b.>> 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.
``(b) Administration.--
[[Page 116 STAT. 457]]
``(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. <<NOTE: 7 USC 3101 note.>> REVIEW OF AGRICULTURAL RESEARCH
SERVICE.
(a) In General.-- <<NOTE: Deadline. Establishment.>> 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.
(b) Membership.--
(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
[[Page 116 STAT. 458]]
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) <<NOTE: Deadline.>> 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. <<NOTE: 7 USC 3319f.>> 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.
(c) Grants.--
(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;
[[Page 116 STAT. 459]]
(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;
(H) whole farm planning;
(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.
(d) Education Teams.-- <<NOTE: Establishment.>>
[[Page 116 STAT. 460]]
(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.
(4) Cooperation.--
(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
[[Page 116 STAT. 461]]
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. <<NOTE: 7 USC 5925c.>> 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. <<NOTE: 7 USC 5925d.>> 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. <<NOTE: 7 USC 5925b note.>> REPORT ON PRODUCERS AND HANDLERS
OF ORGANIC AGRICULTURAL PRODUCTS.
Not <<NOTE: Deadline.>> later than 1 year after funds are made
available to carry out this section, the Secretary shall submit to
Congress a report that--
(1) describes--
(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
[[Page 116 STAT. 462]]
(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. <<NOTE: Deadline.>> 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. <<NOTE: 7 USC 5925a note.>> 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. <<NOTE: 7 USC 7630.>> 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
[[Page 116 STAT. 463]]
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. <<NOTE: 7 USC 3361 note.>> 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;
``(B) Guam;
``(C) American Samoa;
``(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--
``(A) a State;
``(B) the District of Columbia; and
``(C) any insular area.''.
(b) Effect <<NOTE: 7 USC 3103 note.>> 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;
[[Page 116 STAT. 464]]
(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. <<NOTE: 7 USC 3361.>> 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. <<NOTE: 7 USC 3362.>> 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.
[[Page 116 STAT. 465]]
``(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. <<NOTE: 7 USC 3363.>> 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.
``(b) Grant Requirements.--
``(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
[[Page 116 STAT. 466]]
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. <<NOTE: 7 USC 7719.>> 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) <<NOTE: Deadline. Publication.>> 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.
``(d) Administration.--
``(1) <<NOTE: Deadline.>> 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:
[[Page 116 STAT. 467]]
``SEC. 411. <<NOTE: 7 USC 7631.>> 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.
``(b) Grant Program.--
``(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.
[[Page 116 STAT. 468]]
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 <<NOTE: 16 USC 2103 note.>> 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.-- <<NOTE: 16 USC 2103 note.>> 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. <<NOTE: 16 USC 2103.>> FOREST LAND ENHANCEMENT PROGRAM.
``(a) Establishment.--
``(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
[[Page 116 STAT. 469]]
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) <<NOTE: Deadline.>> 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.
[[Page 116 STAT. 470]]
``(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.
``(e) Management Plan.--
``(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.
[[Page 116 STAT. 471]]
``(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.
``(h) Recapture.--
``(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:
[[Page 116 STAT. 472]]
``(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.
[[Page 116 STAT. 473]]
``(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. <<NOTE: 16 USC 2106c note.>> 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. <<NOTE: 16 USC 2106c.>> 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.
[[Page 116 STAT. 474]]
``(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. <<NOTE: 16 USC 1674b.>> 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)
[[Page 116 STAT. 475]]
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. <<NOTE: 7 USC 8101.>> DEFINITIONS.
In this title:
(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.
(3) Biomass.--
(A) In general.--The term ``biomass'' means any
organic material that is available on a renewable or
recurring basis.
(B) Inclusions.--The term ``biomass'' includes--
(i) agricultural crops;
(ii) trees grown for energy production;
(iii) wood waste and wood residues;
(iv) plants (including aquatic plants and
grasses);
(v) residues;
(vi) fibers;
(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
[[Page 116 STAT. 476]]
(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. <<NOTE: 7 USC 8102.>> 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.
(e) Guidelines.--
(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
[[Page 116 STAT. 477]]
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) <<NOTE: Deadline.>> 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. <<NOTE: Reports.>> 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) <<NOTE: Deadline.>> 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
[[Page 116 STAT. 478]]
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.
(h) Labeling.--
(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) <<NOTE: Deadline.>> 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.
(j) Funding.--
(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. <<NOTE: 7 USC 8103.>> 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
[[Page 116 STAT. 479]]
(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.
(2) Selection criteria.--
(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;
[[Page 116 STAT. 480]]
(viii) the participation of multiple eligible
entities; and
(ix) the potential for developing advanced
industrial biotechnology approaches.
(f) Cost Sharing.--
(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. <<NOTE: 7 USC 8104.>> 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. <<NOTE: 7 USC 8105.>> ENERGY AUDIT AND RENEWABLE ENERGY
DEVELOPMENT PROGRAM.
(a) <<NOTE: Grants.>> 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));
[[Page 116 STAT. 481]]
(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.
(c) <<NOTE: Establishment.>> Merit Review.--
(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.
(d) Use of Grant Funds.--
(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.
[[Page 116 STAT. 482]]
(h) <<NOTE: Deadline.>> 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. <<NOTE: 7 USC 8106.>> 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.
(c) Cost Sharing.--
(1) In general.--
(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.
(d) Interest Rate.--
(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.
[[Page 116 STAT. 483]]
SEC. 9007. <<NOTE: 7 USC 8107.>> HYDROGEN AND FUEL CELL TECHNOLOGIES.
(a) <<NOTE: Memorandum.>> 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, <<NOTE: 26 USC 7624 note.>> by striking
subsection (f);
(2) by redesignating section 310 <<NOTE: 26 USC 7624
note.>> 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 <<NOTE: 7 USC 6711.>> 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,
[[Page 116 STAT. 484]]
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.
``(e) Extension Projects.--
``(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.''.
[[Page 116 STAT. 485]]
SEC. 9010. <<NOTE: 7 USC 8108.>> CONTINUATION OF BIOENERGY PROGRAM.
(a) Definitions.--In this section:
(1) Bioenergy.--The term ``bioenergy'' means--
(A) biodiesel; and
(B) fuel grade ethanol.
(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.
(b) Bioenergy Program.--
(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.
(3) Payment.--
(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.
(B) Payment rate.--
(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.
[[Page 116 STAT. 486]]
(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--
(1) in paragraph (3)--
(A) by striking ``The Corporation'' and inserting
the following:
``(A) Review.--The Corporation''; and
(B) by striking ``Based on'' and inserting the
following:
``(B) <<NOTE: Effective date.>> Procedures.--
Effective beginning not later than the 2004 reinsurance
year, based on''; and
[[Page 116 STAT. 487]]
(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 <<NOTE: Deadline.>> 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
[[Page 116 STAT. 488]]
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. <<NOTE: 7 USC 1472.>> 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.
[[Page 116 STAT. 489]]
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.
(d) Regulations.--
(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. <<NOTE: Grants. New York.>> 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. <<NOTE: Disaster assistance.>> 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
[[Page 116 STAT. 490]]
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) <<NOTE: Deadline.>> 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. <<NOTE: 7 USC 8201.>> DEFINITIONS.
In this subtitle:
(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. <<NOTE: 7 USC 8202.>> 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.
[[Page 116 STAT. 491]]
(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. <<NOTE: 7 USC 8203.>> 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. <<NOTE: 7 USC 8204.>> 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. <<NOTE: 7 USC 8205.>> 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.--
[[Page 116 STAT. 492]]
``(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) <<NOTE: 7 USC 2156 note.>> 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--
(1) in subsection (e)--
(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) <<NOTE: 7 USC 2156 note.>> Effective Date.--The amendment made
by this section takes effect 1 year after the date of enactment of this
Act.
SEC. 10304. <<NOTE: 7 USC 2132 note.>> REPORT ON RATS, MICE, AND BIRDS.
(a) <<NOTE: Deadline.>> 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
[[Page 116 STAT. 493]]
(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. <<NOTE: 7 USC 1901 note.>> 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
[[Page 116 STAT. 494]]
(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 <<NOTE: Animal Health Protection Act.>> E--Animal Health
Protection
SEC. 10401. <<NOTE: 7 USC 8301 note.>> SHORT TITLE.
This subtitle may be cited as the ``Animal Health Protection Act''.
SEC. 10402. <<NOTE: 7 USC 8301.>> FINDINGS.
Congress finds that--
(1) the prevention, detection, control, and eradication of
diseases and pests of animals are essential to protect--
(A) animal health;
(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. <<NOTE: 7 USC 8302.>> DEFINITIONS.
In this subtitle:
[[Page 116 STAT. 495]]
(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:
(A) A protozoan.
(B) A plant.
(C) A bacteria.
(D) A fungus.
(E) A virus or viroid.
(F) An infectious agent or other pathogen.
(G) An arthropod.
(H) A parasite.
(I) A prion.
(J) A vector.
(K) Any organism similar to or allied with any of
the organisms described in this paragraph.
[[Page 116 STAT. 496]]
(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. <<NOTE: 7 USC 8303.>> 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.
(b) Regulations.--
(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
[[Page 116 STAT. 497]]
(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. <<NOTE: 7 USC 8304.>> 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--
[[Page 116 STAT. 498]]
(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. <<NOTE: 7 USC 8305.>> 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. <<NOTE: 7 USC 8306.>> 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--
[[Page 116 STAT. 499]]
(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.
(2) State action.--
(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) <<NOTE: Public information.>> issue a
public announcement of the proposed action; and
(iii) <<NOTE: Federal Register,
publication.>> 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.
(d) Compensation.--
[[Page 116 STAT. 500]]
(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.
(2) Amount.--
(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. <<NOTE: 7 USC 8307.>> 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).
[[Page 116 STAT. 501]]
(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. <<NOTE: 7 USC 8308.>> DETECTION, CONTROL, AND ERADICATION
OF DISEASES AND PESTS.
(a) In General.--The Secretary may carry out operations and measures
to detect, control, or eradicate any pest or disease of livestock
(including the drawing of blood and diagnostic testing of animals),
including animals at a slaughterhouse, stockyard, or other point of
concentration.
(b) Compensation.--
(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. <<NOTE: 7 USC 8309.>> 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.
(3) Summary suspension.--
(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.
[[Page 116 STAT. 502]]
(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. <<NOTE: 7 USC 8310.>> 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.
(c) Screwworms.--
(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.
(2) Proceeds.--
(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.
[[Page 116 STAT. 503]]
(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. <<NOTE: 7 USC 8311.>> 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.
(2) Reimbursement.--
(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. <<NOTE: 7 USC 8312.>> ADMINISTRATION AND CLAIMS.
(a) Administration.--To carry out this subtitle, the Secretary may--
(1) acquire and maintain real or personal property;
(2) employ a person;
(3) make a grant; and
[[Page 116 STAT. 504]]
(4) notwithstanding chapter 63 of title 31, United States
Code, enter into a contract, cooperative agreement, memorandum
of understanding, or other agreement.
(b) Tort Claims.--
(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. <<NOTE: 7 USC 8313.>> PENALTIES.
(a) Criminal Penalties.--
(1) Offenses.--
(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.
(b) Civil Penalties.--
(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
[[Page 116 STAT. 505]]
into account the nature, circumstance, extent, and gravity of
the violation or violations and the Secretary may consider, with
respect to the violator--
(A) the ability to pay;
(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.
(4) Finality of orders.--
(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. <<NOTE: 7 USC 8314.>> 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.
(2) Subpoenas.--
(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.
(C) Enforcement.--
(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
[[Page 116 STAT. 506]]
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.
(D) Compensation.--
(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.
(E) Procedures.--
(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.
(c) Court Jurisdiction.--
(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.
[[Page 116 STAT. 507]]
(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. <<NOTE: 7 USC 8315.>> 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. <<NOTE: 7 USC 8316.>> AUTHORIZATION OF APPROPRIATIONS.
(a) In General.--There are authorized to be appropriated such sums
as are necessary to carry out this subtitle.
(b) Transfer of Funds.--
(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) <<NOTE: 21 USC 129a and note.>> 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 <<NOTE: 21 USC 111-113, 120-122.>> of February
2, 1903 (21 U.S.C. 111, 120 through 122).
[[Page 116 STAT. 508]]
(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
[[Page 116 STAT. 509]]
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.-- <<NOTE: 7 USC 8317.>> 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.''.
(b) Swine Contractors.--
(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)
[[Page 116 STAT. 510]]
(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. <<NOTE: 7 USC 229b.>> 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. <<NOTE: 7 USC 8318.>> 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.
[[Page 116 STAT. 511]]
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. <<NOTE: 7 USC 612c-4.>> 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.
(b) Purchase Authority.--
(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.
[[Page 116 STAT. 512]]
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
(5) in paragraph (3)--
(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--
(1) in clause (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 clause (iii), by striking ``similarly signed'' and
inserting ``similarly signed, authorized, or otherwise
authenticated'';
[[Page 116 STAT. 513]]
(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. <<NOTE: 7 USC 3005.>> FARMERS' MARKET PROMOTION PROGRAM.
``(a) Establishment.--The Secretary shall carry out a program, to be
known as the `Farmers' Market Promotion Program' (referred to in this
section as the `Program'), to make grants to eligible entities for
projects to establish, expand, and promote farmers' markets.
``(b) Program Purposes.--
``(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;
``(2) a local government;
``(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--
(A) in subsection (a)--
[[Page 116 STAT. 514]]
(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. <<NOTE: 7 USC 6523.>> 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.).
(b) Federal Share.--
(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
[[Page 116 STAT. 515]]
on a certified organic farm (as defined in section 2103 of the
Organic Foods Production Act of 1990 (7 U.S.C. 6502)).
``(2) <<NOTE: Deadline.>> 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. <<NOTE: 16 USC 3801 note.>> 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
[[Page 116 STAT. 516]]
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.
``(C) Comparability.--
``(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
[[Page 116 STAT. 517]]
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. <<NOTE: 7 USC 2219a.>> 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.''.
[[Page 116 STAT. 518]]
(3) The matter under the heading ``bureau of animal
industry'' of the Act of <<NOTE: 7 USC 394.>> 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--
(1) in subsection (a)--
(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.''.
[[Page 116 STAT. 519]]
(b) Conforming Repeal.--Section 1669 of the Food, Agriculture,
Conservation, and Trade Act of 1990 (7 U.S.C. 5922) is repealed.
(c) <<NOTE: 7 USC 2279b note.>> Effective Date.--The amendments
made by this section take effect on October 1, 2002.
SEC. 10706. <<NOTE: 7 USC 8002.>> 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) <<NOTE: Contracts.>> 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
[[Page 116 STAT. 520]]
(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
[[Page 116 STAT. 521]]
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;
``(iv) marketing; and
``(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.
``(4) 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.
[[Page 116 STAT. 522]]
``(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. <<NOTE: 7 USC 2279-1.>> 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) Establishment.--
``(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.
[[Page 116 STAT. 523]]
``(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.
``(iii) Elections.--
``(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.
``(III) Nominations.--
``(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.
[[Page 116 STAT. 524]]
``(V) <<NOTE: Deadline.>> 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) <<NOTE: Deadline.>> 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).
``(VII) Election reform.--
``(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.
[[Page 116 STAT. 525]]
``(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) <<NOTE: Internet.>> 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) <<NOTE: 7 USC 473a note.>> 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) <<NOTE: 7 USC 473a note.>> 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) <<NOTE: 7 USC 473a note.>> is amended by
striking subsection (e).
SEC. 10802. <<NOTE: 7 USC 5921a.>> PROGRAM OF PUBLIC EDUCATION
REGARDING USE OF BIOTECHNOLOGY IN PRODUCING FOOD FOR HUMAN
CONSUMPTION.
(a) <<NOTE: Deadline.>> 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.
[[Page 116 STAT. 526]]
(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--
(A) feed; and
(B) food grains, oilseeds, cotton, livestock, and
products thereof;
(2) supply and demand conditions for similar products;
(3) costs to the Federal Government;
(4) farm income;
(5) food costs;
(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. <<NOTE: 21 USC 321d.>> MARKET NAMES FOR CATFISH AND
GINSENG.
(a) Catfish Labeling.--
(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:
[[Page 116 STAT. 527]]
``(t) If it purports to be or is represented as catfish, unless it
is fish classified within the family Ictaluridae.''.
(b) Ginseng Labeling.--
(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. <<NOTE: 21 USC 341 note.>> FOOD SAFETY COMMISSION.
(a) Establishment.--
(1) In general.--There is established a commission to be
known as the ``Food Safety Commission'' (referred to in this
section as the ``Commission'').
(2) <<NOTE: President.>> Membership.--
(A) Composition.--The Commission shall be composed
of 15 members (including a Chairperson, appointed by the
President.
(B) Eligibility.--
(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
(ii) shall be filled--
(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.
(3) <<NOTE: Deadline.>> Meetings.--
(A) Initial meeting.--The initial meeting of the
Commission shall be conducted not later than 30 days
[[Page 116 STAT. 528]]
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.
(b) Duties.--
(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) <<NOTE: Deadline.>> 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
[[Page 116 STAT. 529]]
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.--
(1) Members.--
(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.
(2) Staff.--
(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.
(C) Compensation.--
(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
[[Page 116 STAT. 530]]
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. <<NOTE: 21 USC 679b.>> PASTEURIZATION.
(a) Pasteurization of Meat and Poultry.--
(1) <<NOTE: Effective date. Deadline.>> 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).
[[Page 116 STAT. 531]]
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. <<NOTE: 21 USC 343 note.>> 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. <<NOTE: Deadline.>> 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) Criminal Penalties.--
``(1) Offenses.--
``(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. <<NOTE: 7 USC 8307 note.>> 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--
[[Page 116 STAT. 532]]
(1) The continental United States.
(2) Guam.
(3) Puerto Rico.
(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) <<NOTE: 115 Stat. 1949.>> 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 <<NOTE: 11 USC 1201-1208, 1221-1231, 1201 note.>> is amended--
(1) by striking ``June 1, 2002'' each place it appears and
inserting ``January 1, 2003''; and
(2) in subsection (a)--
(A) by striking ``September 30, 2001'' and inserting
``May 31, 2002''; and
(B) by striking ``October 1, 2001'' and inserting
``June 1, 2002''.
(b) <<NOTE: 11 USC 1201 note.>> Effective Date.--The amendments
made by subsection (a) shall take effect on June 1, 2002.
SEC. 10815. <<NOTE: 7 USC 1967.>> 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) <<NOTE: Applicability.>> 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.
[[Page 116 STAT. 533]]
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. <<NOTE: 7 USC 1638.>> DEFINITIONS.
``In this subtitle:
``(1) Beef.--The term `beef' means meat produced from cattle
(including veal).
``(2) Covered commodity.--
``(A) In general.--The term `covered commodity'
means--
``(i) muscle cuts of beef, lamb, and pork;
``(ii) ground beef, ground lamb, and ground
pork;
``(iii) farm-raised fish;
``(iv) wild fish;
``(v) a perishable agricultural commodity; and
``(vi) peanuts.
``(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.
``(9) Wild fish.--
``(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. <<NOTE: 7 USC 1638a.>> NOTICE OF COUNTRY OF ORIGIN.
``(a) In General.--
[[Page 116 STAT. 534]]
``(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
[[Page 116 STAT. 535]]
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. <<NOTE: 7 USC 1638b.>> ENFORCEMENT.
``(a) <<NOTE: Applicability.>> 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. <<NOTE: Deadlines. 7 USC 1638c.>> 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. <<NOTE: Effective date. 7 USC 1638d.>> APPLICABILITY.
``This subtitle shall apply to the retail sale of a covered
commodity beginning September 30, 2004.''.
[[Page 116 STAT. 536]]
Subtitle J-- <<NOTE: Deadlines.>> Miscellaneous Studies and Reports
SEC. 10901. <<NOTE: 7 USC 612c note.>> 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
(B) consumers; 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
[[Page 116 STAT. 537]]
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. <<NOTE: Oregon.>> 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.
[[Page 116 STAT. 538]]
SEC. 10906. <<NOTE: 7 USC 2204 note.>> 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. <<NOTE: 7 USC 3191 note.>> STUDIES ON AGRICULTURAL RESEARCH
AND TECHNOLOGY.
(a) Scientific Studies.--
(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).
(b) Vaccines.--
(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. <<NOTE: 31 USC 712 note.>> REPORT ON TOBACCO SETTLEMENT
AGREEMENT.
Not later than December 31, 2002, and annually thereafter through
2006, the Comptroller General shall submit to Congress
[[Page 116 STAT. 539]]
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. <<NOTE: 7 USC 2204 note.>> 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
(5) forestry programs.
(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
(3) program recipients.
(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--
[[Page 116 STAT. 540]]
(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.
Approved May 13, 2002.
LEGISLATIVE HISTORY--H.R. 2646 (S. 1731):
---------------------------------------------------------------------------
HOUSE REPORTS: Nos. 107-191, Pts. 1 and 2 (both from Comm. on
Agriculture) and Pt. 3 (Comm. on International Relations) and 107-424
(Comm. of Conference).
SENATE REPORTS: No. 107-117 accompanying S. 1731 (Comm. on Agriculture,
Nutrition, and Forestry).
CONGRESSIONAL RECORD:
Vol. 147 (2001):
Oct. 3-5, considered and passed
House.
Vol. 148 (2002):
Feb. 13, considered and passed
Senate, amended, in lieu of S.
1731.
May 2, House agreed to conference
report.
May 7, 8, Senate considered and
agreed to conference report.
WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 38 (2002):
May 13, Presidential remarks.
<all>
DEBATE - The House proceeded with one hour of debate on the conference report on H.R. 2646.
The previous question was ordered without objection.
Mr. Kind (WI) moved to recommit with instructions to the conference committee. (consideration: CR H2056-2057)
The previous question on the motion to recommit with instructions to conference committee was ordered without objection.
On motion to recommit with instructions to conference committee Failed by recorded vote: 172 - 251 (Roll no. 122). (text: CR H2056)
Roll Call #122 (House)Conference report agreed to in House: On agreeing to the conference report Agreed to by the Yeas and Nays: 280 - 141 (Roll no. 123).
Roll Call #123 (House)Motions to reconsider laid on the table Agreed to without objection.
On agreeing to the conference report Agreed to by the Yeas and Nays: 280 - 141 (Roll no. 123).
Roll Call #123 (House)Conference papers: message on House action held at the desk in Senate.
Enacted as Public Law 107-171
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Conference report considered in Senate. (consideration: CR S3903-3904, S3904-3937)
Conference report considered in Senate. (consideration: CR S3979-4052)
Conference report agreed to in Senate: Senate agreed to conference report by Yea-Nay Vote. 64 - 35. Record Vote Number: 103.
Roll Call #103 (Senate)Senate agreed to conference report by Yea-Nay Vote. 64 - 35. Record Vote Number: 103.
Roll Call #103 (Senate)Message on Senate action sent to the House.
Presented to President.
Presented to President.
Signed by President.
Signed by President.
Became Public Law No: 107-171.
Became Public Law No: 107-171.